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More than half of the 27 million carbon credits produced by one of the world’s largest offsetting projects did not correspond to actual emission reductions, leading carbon registry Verra has said following a two-year review of Zimbabwe’s Kariba forest protection initiative.

Verra is now seeking compensation for the millions of “excess” credits from Carbon Green Investments (CGI) – the project’s developer – after the registry’s technical analysis found the threat to the forest had been overstated in the project’s original forecast.

The Kariba REDD+ project, which aims to protect an area 10 times the size of New York City, has long faced accusations by several media outlets and carbon market analysts of exaggerating its climate credentials through flawed carbon accounting and of failing to provide promised benefits to local communities.

The conservation project stretches across national parks, forest reserves and wildlife corridors along the southern shore of Lake Kariba in the Zambezi River basin in northern Zimbabwe.

Dozens of big companies, including Gucci, Volkswagen, Nestlé and Dutch electricity firm Greenchoice, bought millions of Kariba’s credits and used them to offset part of their own emissions and back up various green assertions.

Overstated deforestation risk

According to a report by Bloomberg, the project generated more than $100 million in revenue after being set up over a decade ago by South Pole, a major Swiss carbon credits broker, and CGI, which is run by a Zimbabwean businessman. South Pole walked away from Kariba in late 2023 when Verra suspended the project and began an internal review following an investigation by The New Yorker magazine.

Nearly two years later, Verra announced last week that its review had found 57% of Kariba’s nearly 27 million credits were issued “in excess”. That is because the actual deforestation observed in a reference area chosen by Kariba’s project developers to predict how much CO2 the scheme would conserve was “significantly lower” than initially estimated, Verra said.

    This calculation is known as the baseline against which a project’s performance is assessed. Critics have repeatedly questioned the accounting method and said flawed methodologies compromise the integrity of carbon offsets. Previous studies by independent rating agencies suggested Kariba may have produced as many as 30 times more credits than it should have done by exaggerating the threat to forests that were never really at risk.

    Compensation process

    Verra said last week that, despite finding them worthless, the millions of “excess” credits already used by buyers would remain valid. But, at the same time, the carbon registry has requested CGI to compensate for them by buying and cancelling an equivalent number of credits from other projects.

    Verra “received a positive response related to this process” from CGI, a spokesperson subsequently told Climate Home News, without giving further details.

    CGI’s founder, Zimbabwean tycoon Steve Wentzel, did not reply to a request for comment. In an online statement, CGI said it remains dedicated to Kariba’s “mission of forest conservation” and “committed to continue working toward resolutions that uphold the highest standards”.

    The company also said it had asked Verra for a “moratorium” on the compensation process until it reviews the registry’s carbon assessment.

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    Separately, Verra also invited the holders of nearly 5 million Kariba credits that have been purchased but not yet used for offsetting to “voluntarily” eliminate those credits, which in that case would be counted towards the compensation.

    South Pole, CGI’s former partner in the scheme, said last week it had asked Verra to cancel 2.5 million credits it still held “to help address the discrepancies in issued credits and uphold the environmental integrity of the project”.

    ‘Big concerns’ remain

    But Jonathan Crook, at the nonprofit Carbon Market Watch (CMW), said Verra’s handling of the Kariba case leaves many questions unanswered and raises big concerns.

    “It is not clear what, if anything concrete, will happen if CGI refuses this request [for compensation], thereby raising real questions over whether anyone will actually be held liable, which would be a shockingly inappropriate outcome to this scandal,” he added.

    Verra has a patchy track record in obtaining compensation from discredited projects. Nearly 2 million phantom credits linked to failed methane-cutting rice cultivation projects in China have yet to be paid back more than a year since Verra shut down the schemes and sought recompense from their developers.

      As Climate Home revealed last year, energy giant Shell was directly involved in the projects and used the majority of the credits to offset – on paper – real greenhouse gas emissions created by its vast fossil fuel operations.

      Climate Home understands that Verra is still pursuing compensation for the excess credits from the companies involved in the rice cultivation projects, but there is no fixed timeline for the process to be completed.

      Questions over permanence

      CMW’s Crook also raised concerns over the future integrity of the remaining 11.6 million Kariba credits deemed by Verra’s review to be of good quality. An underlying principle of REDD+ projects is that carbon stored in forests must be maintained over a long period of time – up to a century – to reliably offset the release of fossil carbon.

      But, with the Kariba project no longer registered with Verra, any carbon supposedly conserved through the scheme now “faces a significant risk of being re-released into the atmosphere over the coming years and decades without any clear solution to remedy the situation”, Crook added.

      More than 5 million credits from the Kariba project had been kept in a so-called buffer pool, an insurance fund with credits set aside for unexpected losses in stored carbon.

      Verra said it had decided to “take pre-emptive action” and cancel all those credits. Additionally, a monitoring system will track deforestation in the project area in the years ahead and extra credits will be cancelled if observed forest loss goes beyond Kariba’s contributions to the buffer pool, the registry said.

      “We are following our processes to ensure integrity and deliver what is right for the climate and communities,” the Verra spokesperson added.

      The post Zimbabwe forest carbon megaproject generated millions of junk credits appeared first on Climate Home News.

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      “Next year is too late for regulations”: Beetaloo Energy’s 2GW gas-powered AI data centre a “disaster proposal” destined to cause climate chaos

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      SYDNEY, Wednesday 22 July 2026 — Beetaloo Energy has secured land from the NT Government for a massive $40 billion “hyperscale” AI data centre near Darwin, which would be powered by 2 gigawatts (GW) of gas power fracked directly from the Beetaloo basin, prompting calls from Greenpeace for urgent federal legislation.

      The proposal marks a dangerous escalation in the AI data centre industry’s expansion, which threatens to entrench fossil fuel infrastructure for decades and put immense pressure on the region’s fragile water resources — while continuing to be unregulated.

      Joe Rafalowicz, Head of Climate and Energy at Greenpeace Australia Pacific, said: “This disaster proposal for a 2GW gas-powered AI data centre in the NT is a shocking example of the unchecked expansion of hyperscale data centres in Australia. It is also, critically, more evidence for the urgent need for a moratorium on all new data centres until strong, binding regulations are put in place to protect our communities and climate.

      This proposal mirrors the frenzied, unchecked expansion currently wreaking havoc on communities in the US. We are seeing cowboy data centre operators treat Australia like a playground, steam-rolling ahead with projects that would lock down precious water resources and spike emissions, despite the overwhelming community opposition.

      Every day, more councils, communities and environmental groups are joining Greenpeace’s call for a moratorium on data centres, yet as of today there is still no system of safeguards or rules in place to regulate these companies.  

      While Beetaloo Energy and the NT Government prepare to bulldoze ahead with this climate and water disaster, the Prime Minister is asleep at the wheel, promising to legislate a vague set of standards next year.

      Next year is too late, and anything less than mandating data centres cover their own energy demand, and then some, with new renewable energy is not enough.” 

      -ENDS-

      Media contact

      Lucy Keller on 0491 135 308 or lucy.keller@greenpeace.org

      “Next year is too late for regulations”: Beetaloo Energy’s 2GW gas-powered AI data centre a “disaster proposal” destined to cause climate chaos

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      Allegations of harms at China-backed transition minerals projects rise

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      Reports of human rights and environmental abuses linked to Chinese companies’ overseas investments in the mining and refining of minerals needed for the clean energy transition are on the rise, research by a monitoring group has found.

      The number of recorded allegations of harm at projects tied to Chinese firms have increased every year since 2021, rising to 148 in 2025, according to the Business and Human Rights Centre (BHRC). On Wednesday it released new data showing that a total of 434 allegations of abuse were made against Chinese-backed projects over the five-year period in projects across the world.

      The world’s top cleantech manufacturer, China is also the leading financier of critical minerals projects worldwide. The country has committed more than $120 billion in foreign direct investment into mineral mining and processing since 2023, Australian think-tank Climate Energy Finance recently found.

      “China plays a central role in global transition mineral supply chains, and as such has a unique opportunity to raise the bar on human rights and community engagement at every stage of mining,” said Michael Clements, BHRC’s executive director.

      “While there have been encouraging developments, from stronger regulations to more company engagement, there remains a gap between human rights commitment and action,” he said.

      The report comes as communities affected by Chinese-backed mineral projects have filed the first two cases to a Beijing-based mediation mechanism intended to bring willing Chinese companies to the discussion table with affected communities.

      Allegations of harms on the rise

      BHRC’s latest analysis – including data for the period 2023-2025 – covered mining, smelting and refining projects for 11 minerals considered key to manufacturing clean energy technologies such as batteries, EVs and solar panels needed to move away from climate-heating fossil fuels.

      The highest number of abuses was recorded in Indonesia, the world’s largest producer of nickel, which is used to make EV batteries. After the Indonesian government banned exports of raw nickel, Chinese firms invested billions of dollars to develop a large-scale nickel smelting and processing industry in the Southeast Asian country, largely powered by coal.

      Other countries with a high number of recorded harms include the Democratic Republic of Congo, where Chinese firms dominate cobalt and copper production; Myanmar, where unregulated rare earths mining has caused widespread environmental destruction; Serbia, where Chinese-backed mining of some of Europe’s most significant copper and gold deposits is swallowing land and homes, and Zimbabwe, where Chinese investments have turned the nation into Africa’s top lithium producer.

      Growing risks for people and nature

      Allegations tracked by BHRC included negative impacts on local livelihoods, health and land rights, workers’ health and safety and work-related deaths, as well as water pollution and environmental contamination. In addition, 18 people were attacked for raising concerns about Chinese transition mineral projects between 2023 and 2025.

      The report shows that 10 Chinese companies, including Zijin Mining, Tsingshan Group and Zhejiang Huayou Cobalt, accounted for nearly two-thirds of all allegations recorded in the last five years. It found that some Chinese companies “still appear to turn a blind eye to these issues” but noted that several others have been more responsive to allegations of abuse. However, even among companies with human rights policies, implementation remains a challenge, BHRC warned.

        Zijin Mining and Zhejiang Huayou Cobalt repeatedly responded to the allegations of harm by saying they take environmental and social risks seriously and adhere to international standards. Tsingshan Group never responded to BHRC’s requests for comment.

        Platform for dialogue between communities and Chinese firms

        At the same time, Chinese authorities have made “significant progress” on introducing a more specific framework for managing environmental and social risks in overseas investment, BHRC said.

        This includes global consultation on a draft Sustainable Mining Code, adherence to UN guiding principles on business and human rights, and greater emphasis on oversight of companies operating overseas.

        The China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC) set up a mediation and consultation mechanism intended to provide a platform for dialogue between affected communities or civil society groups that have raised concerns and Chinese companies.

        More than three years since its launch, the mechanism has now received its first two complaints from local communities and many more are considering filing a case, Margaux Day, executive director at the nonprofit Accountability Counsel, told an event hosted by Climate Home News last month.

        “This is incredibly exciting in that it fills a governance and accountability gap where often communities who are seeking to protect their rights and the environment can’t reach someone who will respond to them,” she told the panel discussion at London Climate Action Week.

        Climate Home News understands that the complaints were filed by communities in Latin America and Southeast Asia over labour rights and resettlement issues. No information about the cases has yet been made public. The mechanism’s secretariat did not respond to Climate Home News’ questions.

        The mechanism was set up after the Chinese regulator for banks and insurers called on investor-level institutions to establish complaints bodies to hear from communities outside of China. But whether the new initiative will prove effective in tackling grievances remains an open question.

        “Real potential” for better mining practices

        Participation in the mechanism is voluntary for Chinese firms and it doesn’t have a fact-finding function, nor can it impose provisions for compensation or compliance with human rights standards.

        But Day told Climate Home News that, if successful, it could bring companies to negotiate an outcome that is better for people and the planet and leads to more sustainable mining practice.

        Chen Yu, an independent China advisor for campaign group Global Witness, agreed that the mechanism holds “real potential”.

        “There exists nothing else at a similar level to promote dialogue between communities and Chinese mining companies in particular,” she said.

        For companies, the mechanism opens “a channel for problem-solving and dialogue with communities”, she added, as “Chinese companies often remain cautious of approaching affected communities directly, afraid of making the problem bigger”.

        However, Chen said the mechanism remains at an early stage of development, faces resourcing challenges and is not yet sufficiently understood by communities in mining areas or Chinese firms.

        To help it address some of these challenges, the secretariat is currently seeking technical support from a range of organisations, including civil society groups. But, Chen said, “it will take time for the mechanism to show its value”.

        The post Allegations of harms at China-backed transition minerals projects rise appeared first on Climate Home News.

        Allegations of harms at China-backed transition minerals projects rise

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        Energy transition policymaking must evolve to fit an age of rupture

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        Andreas Sieber is head of political strategy at 350.0g. Cat Abreu is director of the International Climate Politics Hub.

        From the US abduction of Venezuela’s president at the start of this year to the Iran war which rumbles on, disruption is the new normal for global geopolitics, more often than not linked to conflict over supplies of oil and gas. 

        Events so far in 2026 – driven largely by the desire of the Trump administration to grab control of fossil fuels around the world – show that the climate community’s approach to energy diplomacy will have to evolve if we are to operate effectively and push for climate action in such a volatile landscape.

        Today’s climate and energy governance must be able to cope with trade wars, genocide, fascism, spiralling inequality and challenges to multilateralism. The increasingly dominant paradigms of economic competitiveness, energy security and green industrialisation can help drive the transition but they also challenge our collective mission to deliver an equitable green shift.

        US-China rivalry dominates

        Longer-term geopolitical trends that are seeing power move from West to East and North to South have fuelled a US–China “superpower rivalry”, which is pulling the global economy apart and reining in trade.

        A key question will be how the fracture “lines” are drawn: by the US and China, or also by other countries or blocs? Many governments will try to remain “in the middle” between the two giants to capture economic gains from both sides. Yet despite the language of “strategic autonomy”, Washington and Beijing may be in a position to force choices via market access, export controls and sanctions.

          At first glance, this may not seem particularly relevant for climate and energy politics. But Huawei’s exclusion from 5G operations across the political West and India following the so-called Clean Network Campaign by the US government serves as a warning of what could happen to climate green tech.

          And the recent debate to cut out Chinese inverters from European markets follows the same pattern – US security forces perceive a risk and start encouraging their allies to drop Chinese technology.

          The new drivers: competition and security

          Despite this fracturing geopolitical and economic context, energy transition is still happening. To ensure it is effective and equitable, we need to understand what is driving it and how to adapt climate politics so that it better responds to these drivers.

          Put simply, China is supplying the world with low-cost renewables (roughly 60% of critical wind and 80% of solar components), batteries, EVs and other key elements. Other countries now also want their piece of the green tech pie and are forming industrial policies to get it.

          It is this new competitiveness-driven logic that will shape the quest for decarbonisation, which has shifted from cooperating around the cost of tackling climate change to rivalry for the benefits of climate action.

          Over 90% of new renewables projects are now cheaper than fossil alternatives. Gas-fired power is 3–4 times more expensive than solar and wind. In 2015, most decarbonisation policies were “traditional” emissions-cutting strategies like carbon pricing or net zero dates, whereas green industrial policies now underpin the majority.

          Iran war could boost fossil fuel phase-out push, says Colombian minister

          Meanwhile, security has become a central driver of energy politics. We are living through the second major fossil fuel crisis in just four years. Elevated oil and gas prices will impose up to $1 trillion in additional costs on the global economy by the end of the year if disruption continues in the Strait of Hormuz. Fossil fuel supply chains have exposed countries to conflict, coercion and brutal price shocks.

          Fossil fuel volatility destabilises whole economies – higher fuel costs drive up food prices, increase political instability, and push millions into poverty and hunger. This incentivises governments to shield themselves from global shocks, especially in countries that are net fossil fuel importers and home to roughly three-quarters of the world’s population. 

          Yet security fears can cut both ways. The same instability that makes fossil fuel dependence untenable is also sharpening concern over China’s dominance of critical clean technologies and supply chains.

          Equity, cooperation and the opportunity for change

          Developing countries benefit from the rapid uptake of renewables enabled by low-cost Chinese technologies. But significant fiscal space and public investment is needed for the electricity grids and infrastructure required to fully unleash the energy transition, as well as for green industrialisation to diversify revenue streams.

          Despite this, industrial-scale domestic production and ownership often remain out of reach for too many countries that lack the fiscal space to allow green supply chains to flourish and compete with their traditional industrial base. But more just and diversified green tech supply chains could be achieved with concomitant support.

          Can giant batteries unlock Africa’s green industrial future?

          For the first time in decades, the international order is being substantially reshaped. If within this context, decarbonisation is increasingly driven by green industrial policy, energy security and competitiveness, the climate policy community must better anticipate where these debates are moving. We must speak the same language, and enter the forums where decisions are made, including security, trade and bilateral or trilateral spaces.

          We should build on an enlightened self interest recognising that cooperation remains essential and beneficial. This includes using the UN climate process differently: less as an ever-expanding negotiation machine, and more as a space for norm-setting, political alignment and deal-making. In an age of fragmentation, effective cooperation must not only be framed as necessary but thought of as a strategically compelling source of resilience and shared advantage.

          The post Energy transition policymaking must evolve to fit an age of rupture appeared first on Climate Home News.

          Energy transition policymaking must evolve to fit an age of rupture

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