No fewer than 100 environmental organisations have called for an immediate ban on oil and gas exploration in the oceans ahead of the United Nations Ocean Conference (UNOC3) in June 2025.
Nicolas Entrup
In an open letter on Wednesday, April 2, the 111 groups emphasised that the ongoing search for fossil fuels in the seabed threatened marine ecosystems, adding that the UNOC3 must be a “moment of action”.
According to Nicolas Entrup from OceanCare, who initiated the open letter, these activities cause some of the most intense noise in our seas, with severe and even deadly impacts on marine life from the smallest plankton to large whales.
He noted that healthy oceans were crucial to combating the worst impacts of climate change and that the letter represented a call for coherence between climate and ocean policies.
”European governments could play a leading role in this effort, as France, Spain, and Portugal had already banned new oil and gas exploration,” he said.
The UNOC3 conference, scheduled for between June 9 and 13 in Nice, would be expected to address these critical issues and develop agreements to protect the ocean.
The Yaba College of Technology (Yabatech) in Lagos has charged students and researchers to maximise opportunities presented by its Plastogas project, an innovative waste-to-energy initiative, to contribute to national development.
Yaba College of Technology (Yabatech)
The Rector, Dr Ibraheem Abdul, who gave the charge on Thursday, April 3, 2025, in an interview in Lagos, said that the project focused on converting plastic waste into gas.
Abdul said that improper disposal of plastic waste and lack of efficient recycling infrastructure had led to environmental degradation, causing public health risks.
“Plastogas project is a call to action for students and researchers to contribute to national development by transforming waste into resources,” he said.
The rector said that the initiative would promote a circular economy and sustainable practices.
“It aims to enhance the Nigerian environmental research landscape through inclusive and adaptive innovations; therefore, higher institutions must take the lead in finding innovative solutions,” he said.
He said that the project was being carried out with the support of the French Embassy in Nigeria.
“Beyond providing financial support, the French Government is deeply investing in fostering academic collaboration and research-driven innovations between the country and our institution.
“The proposal by the Yabatech project team emerged as one of the five winners of the French Embassy Fund Project in 2024 entitled: “Plastic Waste Management in Nigerian Campuses,” he said.
The initiative is part of the global effort to combat plastic pollution.
It also aims to support young Nigerian researchers in developing innovative solutions for a healthier environment.
The rector said that the project would address plastic waste pollution, noting that Lagos State experienced significant plastic waste pollution.
“The Plastogas project will have a profound impact on students, fostering skills, awareness and innovation in several key areas.”
He added that it would provide entrepreneurship and employability prospects as well as community engagement.
“The project aims to promote a circular economy by transforming waste into useful products; thus, enhancing sustainability practices.
“The project aligns with Yabatech’s goal of fostering innovation and practical solutions to environmental issues, positioning the college as a leader in sustainable waste management.
“On skill development, the project will train students and stakeholders on plastic waste gasification, briquette manufacturing, upcycling plastics into household items and producing building materials from recycled plastics, thereby equipping them with practical skills,” he added.
United States’ President Donald Trump’s announcement of a 10% universal tariff on nearly all imported goods, coupled with higher “reciprocal” tariffs targeting specific nations, poses a risk to the U.S. economy and ordinary citizens, but will not affect the energy transition and renewables trade globally, according to an analysis by 350.org.
Renewable energy
The renewables trade had already significantly shifted away from the United States, even before Trump’s tariffs, with most wind and solar equipment manufactured in China. Only 4% of Chinese clean tech exports actually go to the U.S. – in a trade sector where sales volume grew by about 30% last year, this makes the U.S. merely a footnote, not a global player.
Clean energy is a natural price stabiliser – sun and wind, as abundant domestic resources, are not commodities traded on volatile global markets that are prone to economic shocks or political upheaval. They are also now the lowest cost energy sources, both in up front and long-term expenses. With the cost of living a top concern globally – these facts cannot be discounted.
Andreas Sieber, Associate Director of Policy and Campaigns at 350.org, says: “Trump’s tariffs won’t slow the global energy transition – they’ll only hurt ordinary people, particularly Americans. Despite his claims he ‘gets’ economic policy, his record tells a different story: tariffs are tanking U.S. stocks and fueling inflation. The transition to renewables is unstoppable, with or without him. His latest move does little to impact the booming clean energy market but will isolate the U.S. and drive-up costs for American consumers.”
ANALYSIS
Global Clean Energy Expansion: While advanced economies such as the USA and countries in Europe dominated the renewables market up until a decade ago, emerging and developing economies are projected to account for 70% of solar PV, 60% of wind, and 60% of battery storage market share by 2030, according to the International Energy Agency’s World Energy Outlook.
Diminishing U.S. Market Share: The United States now represents a mere 7% of the global market for newly installed solar power plants and an even smaller share of global renewables trade.
China’s Clean Technology Exports: China dominates the manufacturing of wind and solar equipment. China’s exports of clean technology, including solar, wind, and electric vehicles (EVs), have surged independently of Western markets. Only 4% of these exports are destined for the U.S., compared to 15% for China’s overall exports.This renders US tariffs ineffective to significantly curb a market where sales volume grew about 30% in 2024.
Tariffs’ Impact on U.S. Consumers: Historical data indicates that tariffs imposed during President Trump’s first term were largely passed on to consumers, leading to increased prices on everyday goods. Indicators of the first weeks of his presidency indicate rising inflation, and poor economic performance will harm the US economy and ordinary citizens.
Minister of Power, Chief Adebayo Adelabu, has called for a collaboration and a stronger working relationship between the Nigerian Society of Engineers (NSE) and the Federal Ministry of Power, especially in addressing challenges in the power sector.
Minister of Power, Chief Adebayo Adelabu (left), with President, NSE, Margret Aina Oguntala
Adelabu made the call in Abuja during the visit of the NSE, led by its President, Margret Aina Oguntala, to discuss areas of collaboration between the NSE and the Ministry. The discussion further centred on strategic partnerships, mentorship opportunities, and the crucial role of NSE in providing technical advisory support to the Ministry on power-related issues.
According to the Minister, considering the number of engineers that the country has produced, Nigeria should have migrated from the engineering related problems facing the nation, especially in the power sector.
He challenged engineers in the country to take the issue of training seriously, encourage and be role models for the younger generation to enable them to show more interest in the profession while also assuring the NSE of willingness to work closely with the Society in addressing some of the challenges in the power sector.
“Let me thank you and your executive members for your visit to me and to the Power Ministry. There is no way to separate the Power Ministry from the NSE because most of our works here are engineering -related, so there is a natural relationship between us. But the issue is that, has this relationship crystallised to mutual benefits? Has the ministry benefitted from the competence of the NSE members to impact the power infrastructure in the country in the supply of a stable, functional, and reliable power?
“I want to challenge the body to let your activities impact on the efficiency of the critical infrastructure of the ministry. In this, you must be seen to have lived up to your responsibility. We have so many engineers in Nigeria, yet our power infrastructure is still like this. NSE was established in 1958, that is about 67 years ago and yet we are still having grid collapse, so what are our engineers doing? Should it be like this? The answer is definitely, no.”
While reviewing the activities of the Federal Government since the present administration took over, the Minister noted that it took Nigeria nearly 40 years to increase from 2000 megawatts in 1984 to 4000 megawatts that Nigeria had as at 2022, adding that less than two years of the present administration, this has increased to 6003 megawatts. He said though it was not where the country should be, it showed that the administration of President Bola Tinubu is focused on turning around the power sector.
“In 1984, the country generated 2000mw of electrify and this was not increased to 4000mw until about 40 years later around 2022 or so. We are about two years now, but we have been able to increase it to 6000 megawatts and this can be attributed to the efforts of President Bola Ahmed Tinubu and the realisation of the importance of the sector as a major factor to galvanise the economy,” the Minister said.
He advised the NSE to focus on the challenges besetting infrastructural development, saying that such efforts to develop the country is the way to show patriotism and nationalism.
“It is a slight on us if we cannot address these challenges, so I’m calling on your society to let us work together in addressing Nigeria’s problems, using your expertise. The ministry, does not give jobs out without such a company being a member of your society.
“We are not like any other ministry or government agency; the power sector is unique. So, on our part, we are fulfilling our obligations to you but you have not reciprocated this to us.”
Adelabu also emphasised the importance of manpower development, training and enjoined the NSE to take it seriously.
“I also want the NSE to take the issue of training very seriously. The profession needs constant training and retraining. We have a very vibrant training institute, the National Power Training Institute (NAPTIN) that you can partner with in this aspect of training. It is unfortunate that the issue of training has been relegated to the background. The last crop of our engineers that were trained were those from the old National Electric Power Authority (NEPA). We must go back to that era of rigorous training of our engineers.”
Also, on manpower development and local capacity building, the Minister called for collaboration with the Federal Government.
“We must be able to produce all the materials we need in our power sector locally. This will promote employment, patronage for our local industries and companies and help us to conserve our foreign exchange. You must also provide mentorship for the young ones coming behind you so that they can look up to you in the profession.
“In our younger days as accountants, we were always looking up and aspiring to be like the doyen of accountancy in the country like Chief Akintola Williams, the Dafinones. So, you have a responsibility to provide that leadership to keep those coming behind you focused,” he said.
In her remarks, the NSE president promised that the body would take up the challenges by the Minister and assured of NSE’s commitment to contributing technical expertise toward improving Nigeria’s power sector, fostering innovation, and enhancing capacity development within the industry.
The Women in Energy Network (WIEN) has congratulated President Bola Ahmed Tinubu for his recent appointment of a new board for the Nigerian National Petroleum Company (NNPC) Limited.
Mrs. Eyono Fatai-Williams, President, Women in Energy Network (WIEN)
In a statement signed by Mrs. Eyono Fatai-Williams, President, WIEN, the irganisation stated that the move brings on board a group of highly respected professionals to inject fresh perspectives and energy into the realisation of Nigeria’s national energy and economic aspirations.
According to WIEN, “this strategic reconstitution comes at a pivotal moment for the energy sector, one marked by transformation, diversification, and an ongoing transition toward sustainability.”
The statement reads: “WIEN is pleased to note the appointment of a new Group Chief Executive Officer and the constitution of an 11-member team, led by a non-executive chairman, to steer the direction of NNPC Limited. Additionally, the inclusion of six non-executive directors representing Nigeria’s geopolitical zones, as well as representation from the Ministries of Petroleum Resources and Finance, signals a broad-based approach to tackling the challenges facing the sector.
“These appointments, made in accordance with Section 59, Subsection 2 of the Petroleum Industry Act, 2021, are expected to enhance operational efficiency, restore investor confidence, increase local content, boost economic growth, and advance the commercialisation and diversification of gas resources. In light of the current economic challenges, particularly the foreign exchange squeeze and inflationary pressures, the need for effective leadership and strategic vision in the energy sector has never been more urgent.
“WIEN also acknowledges the significant progress these appointments represent within the broader framework of energy sector reforms. These reforms are crucial for attracting sustainable investments that will stimulate both oil and gas production and the development of local refining capacity.
“We specially thank Mr. President for the appointment of Mrs. Lydia Shehu Jafiya, Permanent Secretary, Federal Ministry of Finance, to the board as the only woman in the 11-member board. We extend our congratulations to her and assure her of our full support.
“As we enter a new chapter under the leadership of His Excellency, President Bola Ahmed Tinubu, the Renewed Hope Agenda offers a transformative vision for Nigeria’s future. This vision emphasises creating opportunities for all Nigerians, particularly women, to thrive in every sector of the economy. It underscores the commitment to gender equality and inclusivity, recognizing the immense contributions of women across various spheres of society.
“However, while the objectives of the Renewed Hope Agenda are commendable, we at WIEN (Women in Energy Nigeria) are deeply concerned about the current composition of the newly appointed NNPC board. Despite the President’s progressive agenda for his administration, the board’s lack of sufficient female representation is a stark contradiction to the commitment of ensuring 35% gender representation in leadership positions, as outlined in his plan.
“This absence of women on the NNPC board not only perpetuates a gender imbalance but also fails to recognise the invaluable role that Nigerian women have played, and continue to play, in the energy sector. Women in Nigeria have consistently demonstrated excellence and innovation in energy-related fields, making significant contributions to the industry’s growth and development. Yet, their voices remain underrepresented in the key decision-making spaces.
“We urge President Tinubu and the administration to ensure that the principles of the Renewed Hope Agenda are reflected in every aspect of governance, particularly in the energy sector, where gender equity is not just an ideal but a necessity for sustainable development. It is vital that women are not only included but are empowered to lead at every level. This will not only enhance the industry but will also set a precedent for future generations, where equality in leadership is not merely aspirational but a reality.
“WIEN remains committed to advocating for the full inclusion of women in leadership and decision-making roles across Nigeria’s energy sector, and we look forward to continued dialogue and action in achieving this important goal.
“It is with this in mind that WIEN respectfully calls upon President Bola Ahmed Tinubu to consider the inclusion of qualified women in the NNPC Limited board and all boards within the Nigerian energy sector.
“We also urge the leadership of the National Assembly and other relevant government agencies to support the President in addressing this gender imbalance, ensuring that the full potential of Nigeria’s energy sector is realised.
“Nigeria is home to a wealth of female professionals in the six-geopolotical zones who have made exceptional strides across the energy value chain. WIEN stands ready to assist in identifying and recommending accomplished women who can contribute to the realization of the President’s objectives for NNPC Limited.
Together, we can achieve a more inclusive, dynamic, and successful energy sector for Nigeria. Again, we congratulate Mr. President on this bold and strategic move to reposition Nigeria’s energy sector not just for domestic reforms but also to place Nigeria in her rightful place in the international energy community.”
Highest body of journalists in the Nigeria’s energy sector, Association of Energy Correspondents of Nigeria (NAEC), has officially congratulated Engr. Bayo Ojulari on his appointment as the new Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC Ltd).
Mr. Bayo Ojulari, GCEO, NNPC Limited
President Bola Ahmed Tinubu, on Wednesday, April 2, 2025, announced the appointment of Ojulari and a new board for NNPC Ltd with a dissolution of the old board taking immediate effect.
Reacting to the news, NAEC in a statement signed by its Chairman, Ugo Amadi, welcomed Ojulari’s appointment, maintaining that the development would bring positive impact to the oil and gas sector in Nigeria given the new GCEO’s wealth of experience in the industry.
“As Editors and correspondents reporting the sector, we look forward to having a robust working relationship with you and other members of your team with the hope of building a solid base for the development of the sector in the overall good of Nigeria.
“As you build on the legacies of your predecessor, we once again congratulate you on this latest appointment, and wish you the very best as you settle down to your new task,” the statement read.
As Nigeria enters the second stage of creating its measurement, reporting, and verification (MRV) framework, experts have reiterated the importance of openness, calling it a beacon of hope that can inspire climate action among rural people across the country.
Participants at the consultation workshop in Abuja, Nigeria, which was organised by NCCCS with assistance from the ICAT Initiative
Transparency, according to the stakeholders who emphasised its significance at a forum hosted by the National Council on Climate Change Secretariat (NCCCS) in Abuja to consult on the establishment of the Phase II MRV framework, would enable a complete and integrated MRV system that accurately tracks and reports emissions across all industries.
They went on to assert that it will also help the government track its progress towards its Nationally Determined Contributions (NDCs) goals and achieve its obligations under the Paris Agreement.
“If we are to talk about climate finance, we have to talk about transparency, and if we have to talk about transparency, we have to talk about MRV systems,” Mr. Ibrahim Abdullahi Shelleng, the Senior Special Advisor to the President on Climate Finance and Stakeholders Engagement, stated.
The presidential adviser advocated for a standardised MRV system that includes people living in frontline communities to encourage them to adopt climate-change-related action. He also wants Nigeria to update its data and establish an institutional collection system.
Speaking on the objective of the workshop, Dr Bala Bappa, ICAT Country Coordinator, said it was to assist Nigeria in developing an MRV framework to support the nation’s NDCs under the Paris Agreement.
“A crucial aspect of this scoping mission was to engage stakeholders in creating a comprehensive MRV framework for the Industrial Processes and Product Use (IPPU) sectors, which was not included in ICAT Phase I’s priority sectors,” he hinted.
Dr Bappa explained that this technical support will empower the country to develop and implement a sectoral MRV system.
From Nigeria’s first Biennial Transparency Report in December 2024 to the United Nations Framework Convention on Climate Change (UNFCCC), the highest-emitting sectors in Nigeria from 2000 to 2022 based on their gross emissions were LULUCF with 63%, waste with 99%, energy with 111%, agriculture with 75%, and IPPU with 947%. Citing these insights, an increase in CO₂ remained the highest GHG in Nigeria, with 70%, and methane, 25%, from 2000 to 2022.
The IPPU sectors in Nigeria cover the chemical industry, the metal industry, non-energy uses of products, the production and use of fluorinated products, and other industries. For tracking purposes of the data sources, experts say the activity level and emission factors will be used for each tier approach.
While in the mineral industry, where the production of cement, lime, glass, and other processes of carbonates and ceramics releases GHG emissions, the MRV system is set to have methodology for calculation and data requirements.
For private sector companies and civil society organisations (CSOs) stakeholders mapping, Dangote Industries Limited, BUA Group, Oxfam Nigeria, and Flour Mills of Nigeria were mapped based on the diagonal metrics.
While federal MDAs are in the horizontal metrics (Lagos, Rivers, and Kano MDAs; Ministry of Environment; and Bank of Industry), sub-nationals are in the vertical metrics for the LULUCF MRV systems review and national reporting.
According to the organisers, to decarbonise the cement industry in line with Nigeria’s updated NDC, the recommendations from the IFF in a report are alternative fuel, energy efficiency, substitution of clinker with alternative materials, and efficient cement use and alternative building materials (reducing the volume of concrete by using wood concrete composite to reduce 20% of steel for bridges). However, this does not require new cutting down of trees for wood-concrete composite.
The reason for gathering and reporting this data is to address MRV guidelines, the transparency pillar, the operational GHG implementation system, and the energy transition plan.
Under the Enhanced Transparency Framework (ETF), nations need to track and provide an emission inventory report on mitigation and adaptation and to track progress on the implementation of NDCs, which is usually used for global stocktaking.
International Breweries Plc (IBPLC), one of the world’s largest breweries with over 500 beer brands, has reaffirmed its commitment to sustainability through innovative water conservation initiatives. In commemoration of World Water Day, the company hosted a series of activities across its four breweries, emphasising its dedication and leadership in responsible water management and environmental stewardship.
L-R: Corporate Affairs & Regulatory Director, International Breweries PLC (IBPLC), Temitope Oguntokun; Sales Director, IBPLC, Nicholas Kade; Route to Market & Trade Marketing Director, IBPLC, Yvonne Onyejiaka; Managing Director, IBPLC, Carlos Coutino; People Director, IBPLC, Esther Ezenwoko and Procurement Director, IBPLC, Ogadimma Mordi, during the company’s World Water Day Celebration in Lagos
Reflecting on the company’s unwavering commitment to environmental sustainability, the Managing Director, IBPLC, Carlos Coutino, said: “Water conservation, and equitable access to water should be a basic right of all human beings because water is life and an invaluable resource.
“For us at International Breweries PLC, water is a vital resource in brewing, and we make deliberate efforts to conserve water. Understanding its importance, we have implemented industry-leading conservation practices, ensuring compliance with environmental regulations and minimising our ecological footprint.”
To mark the 2025 World Water Day, IBPLC welcomed stakeholders to tours across its four breweries to witness, firsthand, the company’s advanced water conservation systems.
During remarks at the IBPLC’s Gateway Brewery tour, the Commissioner for Environment, Ogun State, Ola Oresanya, who was represented by Abayomi Hunpe, the Special Adviser to Ogun State Governor on Ogun State Waste Management Authority (OGWAMA), noted that the physical inspections of IBPLC’s plant proved that the foremost brewer is doing great things around water conservation to ensure that it meets global standards.
“I want other companies to emulate what IBPLC is doing here. The company is striving as much as possible to meet the global standard in water conservation, as they celebrate World Water Day,” he noted.
At the Port Harcourt brewery of IBPLC, the Director, Ministry of Environment, Pollution Department, Joan Tenny-Igoma, expressed her delight for the company’s water stewardship.
“I was truly impressed by the plant’s commitment to water conservation. The water recovery machine is a testament to the fact that you not only value water, but also creatively utilize it to minimize waste. This is a shining example of responsible water management,” Tenny-Igoma noted.
Recognising that sustainability begins from within, IBPLC also organised a townhall session to educate employees on the company’s water conservation efforts. This session provided staff with valuable insights into IBPLC’s sustainability initiatives, empowering them to become advocates for water conservation within and beyond the organisation.
Beyond World Water Day, IBPLC has continuously demonstrated its commitment to sustainable water management. The company has donated solar-powered boreholes to several communities where it operates, including communities in Anambra, Rivers, Ogun, and Osun states. These boreholes provide potable, clean and reliable water sources, significantly improving the quality of life for residents in these regions.
This year, Logbara community in Ogun State received a donation of solar-powered borehole as part of the company’s corporate social responsibility.
International Breweries says it remains steadfast in integrating sustainable practices across its operations. From responsible sourcing of raw materials to pioneering brewing techniques, the company says it continually invests in technology and processes that enhance efficiency while minimising environmental impact.
“Through strategic partnerships, employee engagement, and community-focused projects, International Breweries Plc is leading the charge towards a more sustainable and water-secured future,” submitted the company.
International Breweries Plc (IBPLC) is a part of Anheuser-Busch InBev (AB InBev), the world’s largest brewer with over 500 brands. IBPLC is the producer of Trophy Lager, Trophy Extra Stout, Hero Lager, Castle Lite, Budweiser, Flying Fish Beta Malt, and Grand Malt, among other beverages.
“As part of a global brand, International Breweries has a dream of bringing people together for a Future with More Cheers through the building of great brands that stand the test of time using the finest natural ingredients,” the company stated.
The Federal Government of Nigeria and the United Nations Industrial Development Organisation (UNIDO) have signed a $175 million Programme for Country Partnership (PCP).
Representatives of the Nigerian government and UNIDO at the signing
While signing the agreement on Wednesday, April 2, 2025, in Abuja, the Minister of Budget and Economic Planning, Sen. Abubakar Bagudu, said that the programme was to accelerate Nigeria’s industrial development and economic transformation.
According to Bagudu, the initiative aligns with the government’s Agenda 2050, the National Development Plan, and the Renewed Hope Agenda of President Bola Tinubu.
“Through this partnership, we aim to enhance Nigeria’s industrial capacity, drive technological innovation, and promote sustainable growth.
“The total budget earmarked for the PCP 2024-2028 amounts to $174.585 million with a clear funding strategy.
“The government of Nigeria has committed a counterpart contribution of 14.3 per cent amounting to $24.965 million while UNIDO will mobilise the remaining 85.7 per cent, totaling $149.19 million,” he said.
Bagudu said that while Nigeria’s absorptive investment capacity ran into hundreds of billions of dollars, the PCP would catalyse private sector participation and broaden access to capital.
“Of course, the absorptive capacity of our economy is in hundreds of billions of dollars. But nevertheless, this cooperation will help catalyse our ability to absorb that investment and broaden the areas.
“This is particularly for the private sector that is well represented here, to take advantage of this and broaden access to capital internationally.
“The financial framework demonstrates government’s dedication to driving industrialisation while leveraging on international partnership to maximise impact,” he said.
According to the minister, the programme will strengthen industrial growth, create jobs and drive economic transformation.
He said that it would also support President the Federal Government’s bold economic reforms, which had repositioned Nigeria as a competitive economy.
He highlighted key economic reforms undertaken by the government, including the removal of oil subsidies, introduction of rule-based foreign exchange system, and inauguration of a consumer credit programme.
“For a country of over 200 million people, consumer credit is essential to driving demand for locally manufactured goods.
“This will ensure that manufacturers, both small and big, can focus on efficiency rather than market absorption challenges,” he said.
Bagudu also emphasised Nigeria’s energy transition efforts, noting that the country is prioritising Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) as cost-effective alternatives to petrol and diesel.
“We are committed to reducing industrial production costs through cheaper and more reliable energy sources.
“Our transition to CNG and LNG will make Nigeria’s manufacturing sector more competitive,” he stated.
The President of the Manufacturers’ Association of Nigeria (MAN), Francis Meshioye, said that PCP was a tool for implementation of the industrial component of the country’s national development plan.
According to Meshioye, over 1000 staff of manufacturing companies are experts operating within industrial zones and benefiting from the capacity-building component of the project.
He said that the organised private sector and manufactures would support by giving the needed resources to allow proper domestication of the methodologies.
“I would like to assure you of our readiness to respond positively and support you in the implementation of the key pillars of the programme,” he said.
A recent study by Australian researchers has found that global warming could affect wealth much more than we thought.
Dr. Timothy Neal of the University of New South Wales’s Institute for Climate Risk and Response led the study
The study, published on Monday, March 31, 2025, revealed that average income per person could drop by 16% globally even if global warming is limited to 2°C – far worse than previous estimates of a 1.4% decline.
The study, led by Dr. Timothy Neal from the University of New South Wales’s Institute for Climate Risk and Response, was published in Environmental Research Letters.
The study also found that even a temperature increase of just 2°C above pre-industrial levels could cut the average per-person GDP worldwide by 16%.
That’s much more than previous estimates, which suggested a reduction of only 1.4%.
Current projections indicate that global temperatures are likely to rise by at least 2.1°C, even if nations meet their short-term and long-term climate goals.
Integrated assessment models (IAMs), which are used to guide government investments in reducing greenhouse gas emissions, have been criticized for failing to accurately capture the risks posed by climate change.
These include extreme weather events and their potential impact on global supply chains.
The new research built upon one of these popular economic models by factoring in climate change forecasts and extreme weather events’ impact on global supply chains.
Dr. Neal stressed that earlier economic models failed to account for how extreme weather events affect global supply chains.
He said, “In a hotter future, we can expect cascading supply chain disruptions triggered by extreme weather events worldwide.”
This makes it imperative for economic models to consider these factors to accurately gauge how climate change could affect global economies.
Some economists argue that global losses from climate change could be offset by potential benefits in colder regions like Canada, northern Europe, and Russia.
However, Dr. Neal disagrees and asserts that global warming will affect all countries due to interconnected economies through trade.
This perspective challenges the notion of regional benefits from climate change and underscores its universal impact on wealth distribution worldwide.
Scientists now project temperatures will rise by 2.1°C even if countries meet climate targets, underscoring the urgent need for action. The findings suggest the economic benefits of ambitious climate policies have been severely underestimated.
With the cost of living a top global concern, transitioning to affordable renewables offers a double benefit – solar and wind power are now cheaper than fossil fuels, immediately reducing energy bills while also preventing longer term hits to income and productivity caused by global heating.
Prof. Frank Jotzo, a climate policy expert at Australian National University, who was not involved in the research, criticised IAMs for assuming that if climate change made an activity like agriculture unviable in one part of the world, increased output would come from elsewhere.
He said that this assumption contradicts what physical impact science and a nuanced understanding of interdependencies in the economy would suggest.
In a reaction, Anne Jellema, Executive Director of 350.org, says: “The cost of inaction on climate change is striking – both for our wallets and our future. Renewables like solar and wind are now the most affordable energy sources, offering stable prices, energy independence, and a path out of fossil fuel volatility.
“The evidence is irrefutable: clean energy isn’t just good for the planet; it’s a down payment on long-term prosperity and security for individuals, households and communities worldwide.”
Mark Lawrence, a climate risk researcher at the University of Adelaide, and a former financial risk manager, found the results of this new study credible.
He suggested that the economic impacts of climate change could be even worse than reported.
Lawrence also stated that “the potential economic benefits of urgent climate policy action have also been significantly understated,” highlighting an urgent need for immediate action against global warming.
