Search Climate Insights Directory

A coalition of 50 civil society organisations is urging financial institutions to refuse funding for the Papua LNG project in Papua New Guinea. The group argues the project is incompatible with the 1.5°C warming limit, citing estimated emissions of 220 million tonnes of CO2 equivalent and risks of stranded assets due to projected peaks in global gas demand by 2030. The statement also highlights potential human rights violations, lack of transparent community consultation, and the existence of more affordable renewable energy alternatives for the country.

The report analyzes EU energy data from 2021 to 2023 to demonstrate how reliance on gas as a marginal electricity generator increases price volatility and energy inflation. It highlights that gas set electricity prices 55% of the time in 2022 and notes that energy inflation (HICP energy) typically rises between 20% and 45% when electricity prices exceed 150€/MWh. The author criticizes the EU's expansion of LNG infrastructure as a source of further volatility and calls on the European Central Bank to support renewable energy and energy efficiency to maintain long-term price stability.

Brookfield Corporation claims to be a leader in decarbonization with a goal of net-zero emissions by 2050, yet it maintains a vast portfolio of over 215 fossil fuel assets. The report estimates these assets emit nearly 159 million metric tons of CO2e annually, a figure approximately 14 times higher than what Brookfield discloses in its sustainability reports. A significant portion of these emissions stems from Oaktree Capital Management, which Brookfield owns 61% of but excludes from its sustainability reporting. The report also highlights the contradiction in the leadership of Mark Carney, who advocates for global net-zero targets while overseeing these investments. Geographically, the portfolio is concentrated in North America, with significant assets in the United States and Canada, as well as international investments in the United Arab Emirates.

The briefing reports a global pipeline of 917 mtpa in new LNG export capacity and 705 mtpa in import capacity, representing an estimated US$1 trillion investment. It warns that a wave of new projects coming online by the middle of the decade, primarily in the United States and Qatar, could lead to market saturation and unprofitable stranded assets. The report highlights that while Asia and Europe are the primary developers of import capacity, demand in these regions is uncertain due to decarbonization goals and price sensitivity. It further notes that many projects are already facing delays or cancellations, and that the buildout in the U.S. may conflict with national interests by raising domestic gas prices and increasing emissions.

The report examines the risks associated with LNG export projects in Mozambique, particularly those involving the European Union. It finds that these projects have caused social displacement, environmental damage, and increased sovereign debt without delivering promised economic development. The authors argue that the 'gas for development' narrative is unsupported by evidence, as Cabo Delgado's socio-economic conditions have worsened since gas discoveries. Financial risks include volatile global gas prices, declining long-term demand due to the energy transition, and contractual designs that delay government revenues until the 2030s. Furthermore, the report highlights an erosion of sovereignty through investor-state dispute settlement (ISDS) mechanisms and the prioritization of infrastructure security over civilian protection. It recommends that Mozambique reassess operational projects, halt new LNG developments, and prioritize sustainable economic diversification.

The briefing analyzes the relationship between gas dependency, electricity prices, and inflation in the EU from 2021 to 2023. It finds that gas-based marginal pricing drives electricity costs and energy inflation, while renewable energy and energy efficiency can lower and stabilize these prices. The authors contend that the ECB's current broad interest rate hikes hinder the capital-intensive investments needed for this transition, potentially undermining the bank's own price stability mandate. They recommend targeted monetary policy to support the energy transition.

The report finds that ADNOC's climate strategy is not aligned with a 1.5°C pathway, characterized by significant oil and gas expansion and insufficient transparency. ADNOC has the highest absolute short-term expansion overshooting the IEA NZE scenario worldwide, with 8,343 mmboe from fields with Final Investment Decisions (FID) after 2021. The company plans to increase crude oil production capacity by 25% between 2020 and 2027 and intends to expand its LNG capacity through new terminals in the UAE, India, and the Netherlands. Low-carbon investments represent only 10% of its 2023-27 CAPEX, and renewables are projected to make up less than 7% of its energy mix by 2030. Furthermore, ADNOC lacks scope 3 emission targets and does not provide detailed financial statements or production forecasts for 2030, hindering a full assessment of its transition risks.

Reclaim Finance argues that current climate commitments by French life insurers contain significant gaps, noting that approximately 45% of life insurance assets bypass these engagements. The organization recommends extending investment policies to unit-linked accounts (UC) and indirect investments, leveraging influence over asset management companies, and expanding the scope of excluded fossil fuel projects to include infrastructure like LNG and pipelines.

A joint statement by Reclaim Finance and other organizations challenging TotalEnergies' claims regarding the Papua LNG project. The authors argue the project contradicts global climate goals, risks becoming a stranded asset due to peaking gas demand, and threatens high-biodiversity native forests. They further contend that the project's social safeguards are insufficient, citing a lack of transparency and opposition from local clans and chiefs in Papua New Guinea.

A joint statement by Reclaim Finance and partners challenging TotalEnergies' claims regarding the Papua LNG project, asserting that the project is incompatible with a 1.5°C warming limit, risks becoming a stranded asset, and threatens indigenous forests and community rights in Papua New Guinea.

The document argues that the Mozambique LNG project is disastrous, citing fatal human rights failures during the 2021 Palma attack, the displacement of hundreds of families without adequate compensation, and the continued instability in Cabo Delgado. It claims the project offers little economic benefit to Mozambique, utilizes tax avoidance schemes, and threatens local biodiversity and global climate goals by producing billions of tonnes of CO2 equivalent over its lifecycle. The authors call on financing banks and agencies to conduct an independent reassessment and cease support for this and other planned gas projects in Mozambique.

The document argues that the Mozambique LNG project is irresponsible and harmful, citing the failure of TotalEnergies and the Mozambican government to address conflict drivers in Cabo Delgado, the displacement of families, and the project's significant contribution to global greenhouse gas emissions. It calls for financial institutions to cancel their support and conduct independent reassessments.

The report forecasts a significant increase in Africa's energy demand due to population growth, projecting that it will overtake the EU27 by 2043. While Africa possesses vast oil, gas, and hydropower reserves, its current energy mix remains heavily reliant on fossil fuels, with 'other renewables' making up only 1.6% of production in 2023. The document highlights a trajectory where Africa will eventually become a major global source of carbon emissions from fossil fuels, overtaking the EU by 2034.

The document examines Africa's natural gas landscape, noting that while the continent holds approximately 10% of global proven gas reserves, a lack of domestic infrastructure means most production is destined for export. It highlights a potential global LNG supply glut starting in mid-2025 and 2026, which may lower prices and profits for exporters. Key reserves are concentrated in Nigeria, Algeria, Egypt, and Libya, while new discoveries are emerging in countries like Mozambique and Senegal. Specific large-scale projects are detailed for Nigeria, Algeria, Egypt, Libya, Mozambique, and Tanzania.

The briefing contends that fossil fuel extraction in Africa has failed to provide energy access, with 600 million people remaining without power while resources are exported. It highlights that Africa possesses 39% of the global renewable energy potential but lacks the investment and technology to harness it. The document proposes a Fossil Fuel Non-Proliferation Treaty based on non-proliferation, fair phase-out, and a just transition to provide the international framework needed to shift financing from fossil fuels to renewables and ensure a just energy transition for the continent.

The paper examines how institutional carbon lock-in perpetuates fossil fuel use in Latin America, specifically through case studies of gas projects in Mexico and Colombia. It argues that state-owned enterprises and regulatory bodies often approve infrastructure based on the 'bridge fuel' narrative and perceived links between gas and economic development, despite a lack of robust demand analysis or alignment with climate targets.

The report argues that technical assistance (TA) from the World Bank Group (WBG) and Asian Development Bank (ADB) creates a 'paradox' by facilitating fossil gas dependency while the institutions claim to align with the Paris Agreement. Between 2016 and August 2023, the WBG allocated nearly $200 million in TA for gas-related sectors across 14 countries, while the ADB committed nearly $11 million from 2016 to 2021. The authors contend that TA has a disproportionate impact on national energy strategies, often locking countries into carbon-intensive infrastructure and creating stranded asset risks. Case studies in Bangladesh, Vietnam, and Pakistan illustrate how TA has been used to prepare LNG projects or gas storage systems rather than accelerating renewable energy transitions. The report recommends that all energy-sector TA be approved at the Board level and redirected toward enhancing Nationally Determined Contributions (NDCs) and renewable energy infrastructure.

Canada has introduced the first transparently published guidelines to prevent new inefficient fossil fuel subsidies, building on its 2022 commitment under the Glasgow Statement. While the framework adopts the World Trade Organization's definition of subsidies and establishes a definition of inefficiency, critics and the IISD highlight loopholes, such as exemptions for 'abated' fossil fuel production involving carbon capture and storage. A significant gap remains in domestic public financing for fossil fuels, which Environmental Defence estimated at CAD 19 billion from the Federal Government in 2022. The government has pledged a plan to end this domestic public financing by fall 2024.

Reclaim Finance argues that TotalEnergies' claims of diversification are misleading, as the company intends to increase oil and gas production through 2028 and expand its liquefied natural gas (LNG) capacity. The report highlights that the company's renewable energy growth is largely driven by acquisitions of existing projects rather than new construction, and that its 'clean' hydrogen and electricity goals still rely heavily on fossil gas. A specific case study on the Papua LNG project illustrates the potential for significant carbon emissions and human rights violations, while the report concludes by urging financial institutions to stop supporting new fossil fuel projects.

Reclaim Finance argues that TotalEnergies' claims of diversification are misleading, as the company intends to increase absolute oil and gas production by 2030 and is aggressively expanding its liquefied natural gas (LNG) portfolio. The report highlights that the company's renewable energy growth relies heavily on acquisitions rather than new capacity and criticizes the Papua LNG project for its projected climate and human rights impacts.