Carbon dioxide (CO2) emissions from the global power sector grew just 0.2% in the first six months of 2023, with rapidly rising wind and solar outpacing sluggish demand growth.
Emissions from electricity generation would have fallen, but droughts forced countries to increase fossil fuel use to cover declines in hydropower.
The findings come from a new report by thinktank Ember, covering 78 countries and 92% of global electricity demand in the first half of 2023.
The report shows that global electricity demand growth and the expansion of low-carbon supplies remain delicately balanced, with ongoing droughts putting a question mark over Ember’s earlier prediction of a decline in fossil-fueled power in 2023.
While expanded wind and solar capacity met a record 14.3% of global electricity demand in the first half of this year, up from 12.8% a year earlier, hydro generation fell by 8.5%.
With a small rise in fossil-fueled power helping to make up for the drop from hydro, emissions from the sector plateaued rather than declining, despite weak electricity demand growth.
The expansion of low-carbon electricity supplies overall remains insufficient to put the world on track for limiting warming to 1.5C, according to Ember’s report.
Solar topples records
Global wind and solar generation continued to increase across the first six months of 2023, according to Ember.
The amount of electricity generated by solar and wind rose to 1,930 terawatt hours (TWh), up 12% from 1,717TWh during the first half of 2022. This accounted for 14.3% of global electricity generation overall, of which 5.5% came from solar and 8.8% came from wind.
In percentage terms, both sources grew more slowly than in the same period last year. For example, wind output grew 10% in the first half of 2023 compared to 16% in the same period last year. Solar grew 16%, compared to 26% in the first half of 2022.
Such levels of growth are below what is needed to limit warming to 1.5C under the International Energy Agency’s (IEA) net-zero emissions by 2050 scenario, which requires a yearly average growth of 17% for wind and 24% for solar up to 2050, Ember notes.
Similarly, in absolute terms, the growth in wind and solar generation was below the levels seen in 2022. Solar grew by 104TWh, down from 132TWh in the same period last year. Wind increased by 109TWh, compared to 147TWh in the same period last year.
Some 50 countries set new monthly records for solar generation in the first half of 2023, Ember says. This includes 24 of the EU’s 27 members seeing new solar highs as of June.
China, meanwhile, generated 50TWh (6.4% of its electricity) from solar in June 2023, up by 9.7TWh (+25%) on the previous June. This means China’s solar generation in one month would be enough to power New Zealand, Qatar or Hungary for a whole year.
Records were also broken in the US, Mexico, Brazil and Chile, among many others in the Americas, Ember says. As shown in the below chart, where the light green line shows solar trending above 2022 generation levels (dark green line) across a range of countries worldwide.
Having peaked in 2020, wind capacity additions have trended downwards over the past few years, according to Ember. In 2020, 111 gigawatts (GW) of capacity were installed worldwide, in 2021 it was 92GW and in 2022 it was 73GW.
Wind generation growth has similarly slowed, with the largest increase in history (+268TWh) in 2021. This then decreased to +251TWh in 2022, and 109TWh in the first half of 2023.
As with solar, China is surging ahead on wind, being responsible for 91% of global growth in generation in the first half of this year, according to Ember.
China saw a 26% growth in wind generation in the first half of 2023 compared to the same period in 2022. In contrast, wind generation in the EU grew by just 4.8% and in Japan by 2.4%, from an already low baseline, the report notes.
Together, wind and solar generation increased by 213TWh in the first six months of 2023. This increase was much larger than the growth in global electricity demand of 59TWh. However, with hydro output falling dramatically due to drought (see below), there was still a small increase in fossil fuel use and emissions..
Without the increase from wind and solar, global power sector emissions would have risen by 154m tonnes of CO2 (MtCO2, 2.6%), instead of the 12MtCO2 (0.2%) actually seen, according to Ember.
Hydropower drops by record amount
In the first six months of 2023, global hydropower generation fell by 8.5% (-177TWh), according to Ember. Hydro generated 1,898TWh of electricity, some 14% of the global total in the first half of the year, in comparison with 2,074TWh (15%) in the same period of 2022.
The decrease in hydropower generation was caused by droughts, which Ember says were likely exacerbated by climate change. The fall in the six months to June (dark blue) was larger than any decline recorded across a full year in the last two decades, as shown in the chart below.
This was most notable in China, which accounted for around three-quarters of the fall.
China is home to nearly a third of the world’s hydropower generation (30% in 2022).
This year, the country’s hydropower sector was hit by summer droughts for the third consecutive year, as reported by Carbon Brief’s China Briefing.
In July, China’s National Bureau of Statistics announced that hydropower output fell by nearly 23% in the first half of 2023 – the largest drop among all electricity sources.
Similarly, the Centre for Research on Energy and Clean Air recorded a “collapse” in output in the month of June, down 34% year-on-year. It attributed this to “drought and pressure to save water for generation during peak demand season in July–August”.
Ember’s analysis found that China’s hydropower “capacity factor” fell to 30.5% in the first six half of 2023, ten percentage points below the first half of 2022 and the lowest value since at least 2015.
Beyond China, the global capacity factor for hydropower generation fell to 35.6%, nearly four percentage points lower than in the first half of 2022. Across the last decade, the average global hydropower capacity factor was 40.9%, notes Ember.
According to the IEA’s electricity market report, the capacity factor of global hydropower has been a declining trend over the last decade. It has fallen from an average of 38% in 1990-2016, to about 36% in 2020-2022.
This 2% difference means installed hydropower is producing about 240TWh less electricity than it would have produced had the capacity factor stayed the same as it was a decade ago, the IEA report notes.
It adds:
“As a result, an amount of energy as large as Spain’s annual electricity consumption needs to be produced by other dispatchable sources of power, which is currently supplied mainly by fossil-fired generation.”
Currently, 2023 is likely to set a record for the lowest global hydropower capacity factor in recorded history, if conditions fail to substantially improve, Ember adds.
Fossil fuel generation increased to meet the shortfall created by low hydropower rates. If hydropower generation had matched its rate in 2022, power sector emissions would have fallen by 2.9%, Ember says.
Ember suggests that the way hydropower capacity has been hit in the first six months of 2023 is a “warning shot” about how the technology could negatively affect the speed of the electricity transition, given its susceptibility to climate change.
In a statement, Malgorzata Wiatros-Motyka, senior electricity analyst at Ember, says:
“It’s still hanging in the balance if 2023 will see a fall in power sector emissions. While it is encouraging to see the remarkable growth of wind and solar energy, we can’t ignore the stark reality of adverse hydro conditions intensified by climate change. The world is teetering at the peak of power sector emissions, and we now need to unleash the momentum for a rapid decline in fossil fuels by securing a global agreement to triple renewables capacity this decade.”
The Intergovernmental Panel on Climate Change (IPCC) sixth assessment report states that by 2080, climate conditions could affect hydropower generation by between +5% and -5%, under a high emissions scenario. However, it said the expected impact varies significantly depending on the region.
Demand drops in major economies
Across the first six months of 2023, global demand for electricity grew by just 0.4%, according to Ember.
This is much lower than the average annual growth rate between 2012 and 2022, which sat at 2.6%.
Major economies saw falls in demand, including Japan (-5.6%), the EU (-4.6%), the US (-3.4%) and South Korea (-1.4%), leading to a decline in their fossil fuel use for electricity.
This fall in demand in high income economies was due to a number of reasons, according to Ember. In the EU, for example, this continued a trend that began in March 2022, when Russia invaded Ukraine.
Policy measures designed to reduce demand amid the wider energy crisis and concerns over the security of gas, falling output from energy intensive industries, mild winter weather, and reduced personal use due to the cost of living crisis, all contributed.
Mild weather and slower economic activity also drove electricity demand reductions in the US and Japan, Ember says.
Meanwhile, India saw lower-than-expected demand growth in the first six months of 2023, according to the report, rising 3.1% compared to 10.7% in the same period last year. This was lower than the average growth seen from 2012-22 (5.4%).
In China, electricity demand increased by 6%, which is in line with the China Electricity Council’s national estimates, Ember notes, and the historic average for 2012-22 (+5.9%). This reflects China’s rebound from Covid lockdowns in 2022 as well as heatwaves during May and June.
Demand growth is unlikely to continue at such a slow level globally in the future, especially in mature economies that are looking to electrify key sectors such as transport and heating to decarbonise, the report notes.
Electricity demand is set to continue increasing in rapidly-growing economies, including China and India, as they continue to advance their economies and boost electricity access.
Emissions plateau
Thanks to the increase in solar and wind power generation – and despite the drop in hydro output – global power sector emissions plateaued over the first half of 2023, according to Ember. It says the increase from wind and solar avoided 142MtCO2 of emissions.
Globally, the power sector emitted 5,795MtCO2 in the six months of 2023, up just 12MtCO2 (0.2%) from the same period in 2022. This continued a downwards trend that had been seen in the power sector prior to 2021, as seen in the chart below.
Falls in power-sector emissions were seen in the EU (-17%), Japan (-12%), US (-8.6%) and South Korea (-3%), largely as a result of falls in coal generation.
Emissions growth slowed in India, Ember says, where there was a 3.7% increase in the first half of 2023, down from 9.7% a year earlier.
However, Ember’s report notes that current progress falls short of what would be needed to keep warming below 1.5C, stating:
“Power-sector emissions need to be falling fast this decade, not just plateauing. Moreover, having falling emissions when demand is exceptionally low is not enough; emissions must be falling even when global demand is increasing as the world consumes more electricity and moves towards electrifying the entire economy.”
In economies where emissions rose, this was due to an increase in fossil fuel generation.
Globally, fossil-fueled power reached 8,100TWh in the first half of 2023, accounting for 59.9% of global generation overall. This was an increase of 9TWh (0.1%) from a year earlier..
Coal generation increased by 1% (47TWh) and gas generation by 0.5% (14TWh), however other fossil fuel (mainly oil) generation fell 15% (-52TWh).
The changes varied significantly at regional and country level. For example, in China, coal generation increased by 203TWh (8%) in the first half of 2023. This was largely due to the hydropower deficit (129TWh) and contributed to China’s emissions for its power sector rising by 7.9% (173MtCO2).
Without the need to meet the hydropower deficit, China’s coal generation would only have risen by 74TWh (2.9%), according to Ember. This would have been enough to turn the observed 47TWh rise in global coal generation into a fall of 82TWh.
Meanwhile, in the EU, fossil generation fell to its lowest since at least 2000 in the first half of 2023, at 410TWh.
The fall was Europe-wide, with 11 countries seeing a decline of at least 20% and five a decline of more than 30% (Portugal, Austria, Bulgaria, Estonia and Finland), as detailed in an earlier report from Ember, covered by Carbon Brief.
Coal generation in the bloc fell 23% (-49TWh), in contrast to the global rise of 1%.
The post World’s electricity supply close to ‘peak emissions’ due to growth of wind and solar appeared first on Carbon Brief.
World’s electricity supply close to ‘peak emissions’ due to growth of wind and solar
New Zealand’s parliament has adopted a controversial new law blocking a whole avenue of climate litigation and shutting down its most advanced corporate lawsuit, which has been blamed by the government for shaking business confidence and investment.
The Climate Change Response (Tort Liability) Amendment Bill, expected to take effect in the coming days after it is formally signed by the Governor-General, prevents all current and future civil claims for climate loss or harm under tort law.
Justice minister Paul Goldsmith said last week that the aim was to give businesses “certainty around their climate change obligations”, noting it would not alter the government’s responsibilities under the Climate Change Response Act 2002 nor business obligations under the Emissions Trading Scheme.
“Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts,” he added in a statement.
Such litigation, he said, “risks developing a new regime that contradicts the framework Parliament has already enacted” to tackle climate change.
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Experts say that despite dismissing the lawsuit, the ruling sets a precedent by confirming that climate science can establish legal liability for the damage caused by emissions
Goldsmith singled out a key domestic climate lawsuit brought by Northland iwi leader and activist Mike Smith against six big companies: dairy firms Fonterra and Dairy Holdings, energy firms Genesis Energy and Z Energy, New Zealand Steel and coal mining firm BT Mining. A seventh original defendant, Channel Infrastructure, was dropped after it permanently decommissioned its Marsden Point oil refinery.
Smith argued that these companies had caused him harm under public nuisance and negligence law, as well as a third breach of a duty to cease contributing to climate change that has yet to be tested domestically. He did not seek financial compensation, instead asking for the companies to immediately stop emitting or contributing to net greenhouse gas emissions.
In one of the most advanced corporate climate accountability lawsuits in the world, a trial had been scheduled for April 2027 after the Supreme Court unanimously allowed the case to continue.
Corporate lobbying in the shadows
Smith described the passing of the bill as “deeply concerning”, particularly as it coincided with the Supreme Court hearing another of his climate lawsuits. In that case, Smith v Attorney-General, he argues that the government’s response to climate change and its impacts on Māori communities in particular breaches rights to life and culture.
“That timing raises profound questions about the separation of powers and the rule of law,” said Smith. “Whatever one’s view of the merits of these cases, it is deeply troubling when parliament intervenes to remove a legal pathway while the courts are actively considering fundamental questions about climate responsibility, rights and the crown’s obligations.”
The bill – which says that no person (including the government) can be found liable in tort for emissions-related climate change effects – followed major lobbying efforts by the companies defending themselves in Smith’s lawsuit. They outlined a proposed legal amendment in a briefing note to the government in 2024.
The centre-right government has been fiercely criticised over its lack of transparency in relation to this lobbying activity. The national ombudsman recently found that the Prime Minister’s Office effectively withheld information requested by the Environmental Law Initiative about meetings, discussions and conversations regarding Smith’s case.
Green groups fail to stop bill
The bill sparked huge concern among environmental campaigners in New Zealand and elsewhere. Greenpeace Aotearoa called it a “shocking abuse of executive power” and the vast majority of submissions to a parliamentary inquiry said it should be rejected.
But in the end, it was adopted with little resistance, moving relatively smoothly through parliament, passing its third reading by 67 votes to 53. Sam Bookman, climate law lecturer at Melbourne Law School, told Climate Home News he was not surprised by this, given that the coalition government has a secure majority.
A complaint has been made to the UN special rapporteur on climate change and human rights by Smith, the National Iwi Chairs Forum Pou Tikanga and youth coalition Climate Clinic Aotearoa over what they see as the government’s heavy-handed approach. Smith is also challenging the new law in yet another lawsuit.
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Bookman thinks it “very unlikely” that such a challenge will succeed, noting that New Zealand’s constitution is firmly anchored in parliamentary sovereignty.
But the expert in climate law does not see the bill as the end of legal action in the country, noting that New Zealand has a “sophisticated climate litigation landscape with a growing number of specialist and experienced lawyers and NGOs”.
The country is also approaching its next general election in November, and some opposition parties have pledged to restore access to the courts if elected.
Amanda Larsson, global project lead on agriculture for Greenpeace International, said: “This law deserves to be tested, and I strongly encourage the international climate litigation community to unite and help defend New Zealanders’ fundamental right to hold polluters accountable before this becomes a global blueprint.”
Copycat legislation on the rise
New Zealand’s move is part of a small but growing legislative effort to shut down climate litigation around the world.
In the US, Republican politicians introduced legislation in the House and Senate in April that would shield fossil fuel firms from climate liability lawsuits. Similar laws have already been passed at state level in Tennessee, Utah, Iowa and Louisiana.
The German state of Bavaria has put forward a similar proposal to the Federal Council, aiming to block private climate claims as well as the recognition and enforcement of foreign judgments imposing such liability. There are also proposals to limit available remedies and actions in the Netherlands and Belgium.
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Bookman said he expects more efforts to counter climate damages litigation and advised plaintiffs to think about how to respond, including drawing on broader support in opposing them.
“Even though it’s very hard for plaintiffs to win these types of cases, companies are very eager to avoid the expense, embarrassment and political accountability that come even with unsuccessful lawsuits,” he said.
The post New Zealand moves to protect business with law curtailing climate litigation appeared first on Climate Home News.
New Zealand moves to protect business with law curtailing climate litigation
Bhima Yudhistira Adhinegara is the Executive Director of the Center of Economic and Law Studies (CELIOS), an Indonesia-based economic think tank. Muhammad Zulfikar Rakhmat is the Director of the China-Indonesia desk at CELIOS.
Indonesia produces around 60% of the world’s nickel, a metal used to manufacture batteries for electric vehicles (EVs) – more than any other country in the world. But in 2026, the government sharply reduced how much of its nickel can be extracted from the ground.
Production quotas were reduced by around 40% this year compared to 2025. Weda Bay, the largest nickel mine on Earth, had its allowance cut by more than 70% and exhausted its full-year quota by the end of May, halting mining entirely; it cannot resume large-scale extraction until next year unless regulators grant an extension.
The policy has sparked a vivid debate in Indonesian policy circles: how can the country shift its strategy from a decade of mining vast quantities of cheap nickel to producing a high-value and low-carbon material that the rest of the world wants for EV batteries.
The cuts aren’t a silver bullet to clean up Indonesia’s nickel industry, whose smelters are powered by coal – the most polluting fossil fuels. But alongside stricter enforcement of environmental rules, it is one side of efforts to produce more sustainable nickel for a premium.
Restricting Indonesia’s nickel output
Production quotas were introduced to stop the collapse of nickel prices because of oversupply in the market. Prices had fallen more than 40% in 2023 alone and kept sliding as Indonesian supply kept growing, hitting a four-year low of around $13,900 a ton in late 2025.
Critics called the recent tightening of production quotas proof that Indonesia’s nickel strategy has failed, arguing that the industry shouldn’t need to throttle its own output to survive. But when assessed against what the policy was supposed to do – push up nickel prices – it has worked. Prices jumped to $20,000 a ton in May, the highest since 2024.
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Chinese industry groups representing companies that have invested billions to mine and refine the country’s nickel were furious, warning Indonesia’s president Prabowo Subianto that the cuts put $50 billion worth of investment at risk. But much of that Chinese capital is sunk into smelters and processing plants built specifically to run on Indonesian ore, and cannot simply be moved elsewhere. That gives Jakarta more room to hold its ground than the warning suggests.
Stronger environmental enforcement
Since the start of the year, Indonesia’s forestry task force has seized more than four million hectares of land from mines and plantations operating illegally in protected forests, collecting over two trillion rupiah ($113 million) in fines.
This included 148 hectares seized from Weda Bay for lacking a forestry permit. The share of nickel produced from illegal small-scale mining also fell from about a quarter in 2022 to roughly 10% by 2024.
The crackdown responds to serious environmental damages in the nickel industry. On Obi Island, a waste pond collapsed after heavy rain in June 2025, flooding three villages and killing a resident. Internal company tests found chromium-6 – a carcinogen – in the water, in quantities far above the legal limit. The footprint of another mine near Raja Ampat, which is home to some of the world’s richest coral reefs, grew 60-fold in just eight years.
The market is responding to early cleanup efforts. Low-carbon nickel now sells for a real premium, roughly $18,800 to $19,300 a ton compared with $17,900 to $18,300 otherwise, as carmakers seek to source cleaner materials to comply with the European Union’s new emissions rules for imports.
In turn, this is incentivising the industry to do more to green its operations. Vale Indonesia’s smelter in South Sulawesi now runs almost entirely on hydropower, for example.
None of this addresses coal use, however. Major Indonesian nickel producers still emitted an estimated 15 million metric tons of greenhouse gases in 2023. Indonesia may be cracking down on illegal mining and rewarding cleaner producers but it is still running its mines on the dirtiest fuel available.
Unequal benefits
For Indonesia to truly benefit from producing cleaner and high-value nickel, it needs to reap the economic benefits too. Although the industry has boosted the country’s economic growth, the reality on the ground tells a different story.
Konawe in Southeast Sulawesi is home to a major smelting complex. Growth in the district jumped from 6% to 22% between 2015 and 2023, driven almost entirely by the nickel industry, according to a study by the Lowy Institute study. At the same time, poverty levels increased slightly and unemployment remained unchanged.
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In Halmahera, another epicentre of the nickel industry, spending by the poorest fifth grew just 5% between 2019 and 2022, compared with 28% for the wealthiest fifth, according to a separate study.
Part of the reason for this inequality is the system for transferring mining royalties to district authorities where the mines are located. In theory, they are entitled to the largest share. But in practice, payments are delayed, companies routinely dispute what they owe and royalties are pooled and distributed across a larger area.
The Natural Resource Governance Institute has found that decentralisation handed local governments power to approve new mines faster than they could build their capacity to manage them. Higher output raises national income on paper, but local governments remain constrained by fiscal rules and infrastructure costs that scale with mining.
None of this makes the 2026 quota cuts a mistake. Indonesia has every right to defend its pricing power over a resource it controls. But limiting extraction isn’t going to fix underlying issues around environmental enforcement and revenue-sharing. That requires rules that are consistently enforced, royalties that reach communities living by the mines, and a plan to wean smelters off coal.
The post Indonesia’s nickel production cuts are not enough to create a sustainable industry appeared first on Climate Home News.
Indonesia’s nickel production cuts are not enough to create a sustainable industry
Climate Change
Risk of “catastrophic” oil spill reaching Kimberley coast found in Woodside’s Scott Reef gas drilling plans
SYDNEY, Monday 24 August 2026 – New analysis of Woodside modelling released by Greenpeace Australia Pacific and Environs Kimberley has revealed the oil and gas corporation’s plans to drill at Scott Reef could cause an oil spill up to 30 times bigger than the 2009 Montara disaster, impacting the Kimberley coastline and reaching as far as Indonesia.
The new analysis details the “catastrophic” oil spill risk put to environmental regulators for approval by Woodside in its Browse to North West Shelf Project (Browse) plans, the worst-case scenario being a blowout directly below Scott Reef, polluting whale migratory pathways and covering isolated turtle nesting ground with oil condensate.
An FOI application (F348) revealed the federal environment department (DCCEEW) asked offshore oil and gas regulator NOPSEMA to look into the oil spill risk in 2025. NOPSEMA’s response to the application refused access to its report, and one document shows DCCEEW sought further advice this year.
Greenpeace and Environs Kimberley are calling on the Federal Government to publicly release the NOPSEMA report given the risk of an uncontrolled release of oil condensate from directly below Scott Reef.
Hannah Schuch, Senior Campaigner at Greenpeace Australia Pacific, said: “Woodside is aware that drilling at Scott Reef risks a massive oil spill that would have severe, far-reaching consequences. It appears environmental regulators are aware too.
“The state and federal governments need to take this risk from Woodside’s drilling plans seriously, as they could end up allowing the worst oil spill in Australian history.
“The pygmy blue whales that migrate up and down the WA coast with their newborns each year could be swimming and feeding in toxic, oil-slicked water. Woodside’s proposal to drill at Scott Reef is an environmental disaster waiting to happen, and the WA and federal governments have one surefire way to prevent catastrophe — reject Browse.”
Martin Prichard, Executive Director at Environs Kimberley, said: “A catastrophic oil spill by Woodside would be disastrous not just for marine life in the area but also for the Kimberley’s $500 million tourism industry.
“The state and federal governments will see five marine parks on the Kimberley coast included in the risk area of a catastrophic Woodside oil spill.
“The Montara oil spill was disastrous for West Timor with the toxic oil destroying seaweed farmers’ livelihoods. The Kimberley dodged a bullet with Montara, we were lucky the spill didn’t head our way. Myself and a crew flew over the Montara oil spill and followed it as far as we could. It was like a scene from a disaster movie.”
After the WA Environmental Protection Authority deemed Browse “unacceptable” due, in part, to oil spill risk, Woodside submitted a mitigation plan based on technology that has never been used “in anger”, a weakness stated in an independent expert review of the plan.
Professor Richard Steiner, independent oil spill expert, said: “A large offshore spill is impossible to effectively contain or recover. Historically, only 2-6% of total spill volume is recovered and the ecological injury from the release of toxic hydrocarbons in the sea can be severe, extensive, and long-term.
“Here in Alaska, government research concludes that several marine populations injured by the 1989 Exxon Valdez oil spill, including whales, fish, and seabirds, are still not recovering today, 37 years later. We should expect similar long-term ecological impacts in Western Australia if there were to be a major oil spill. The only sure way to avoid the risk of a catastrophic marine oil spill is to not develop oil and gas projects in marine environments.”
-ENDS-
Media contact
Emma Sangalli on emma.sangalli@greenpeace.org or 0431 513 465
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