July 17, 2024, Ottawa—With inflation and affordability top of mind for Canadians, a new report from the International Institute for Sustainable Development (IISD) warns that fossil fuel reliance keeps consumers stuck on an energy price rollercoaster and exposes Canada to energy price-driven inflation. A significant portion of Canada’s primary energy, and roughly 18% of Canada’s electricity, is provided by fossil fuels. Between February 2021 and June 2022, energy price increases contributed to a third (33%) of Canada’s overall inflation.  

In addition, up to 25% of non-energy items within the Consumer Price Index are sensitive to oil prices, including food, various goods and services, and costs for shelter (both owned and rented). If Canada remains dependent on fossil fuels, energy-driven inflation risks will persist. The report calls upon all levels of government to establish policies that will support a transition from fossil fuel dependence to help reduce inflationary risks while supporting affordability for Canadians.  

In the last decade, the costs of renewable energy have dropped dramatically, presenting an opportunity to improve Canada’s energy affordability, efficiency, and security. The report highlights that lowering household energy expenses through fuel switching, improving efficiency, and adopting electrification directly reduces the cost of living.  

Drawing on recent analysis, the report highlights that by transitioning the country’s electricity grids to net-zero by 2050, Canada could save up to CAD 15 billion per year, cutting average household energy expenses by CAD 1,500 annually. Strategic climate policies enacted by governments can encourage cost savings for households that switch their energy supply from fossil fuels to electricity. 

Fossil fuel prices are tied to international oil and gas markets, which are affected by boom-bust commodity cycles, geopolitical interference, and imbalances between supply and demand that are beyond our control.   

“The impact of spiking oil and gas prices goes beyond the price at the pump and our heating bills,” says Jessica Kelly, senior policy advisor at IISD and author of the report. “It impacts the cost of everyday needs such as food, clothing, furniture, restaurant meals, and even the buildings we live in, whether rented or owned.” 

As climate change worsens, fossil fuel assets and supply chains face heightened risks amid fluctuating oil and gas prices. On top of that, declining global demand could intensify market volatility. 

“Recognizing energy's crucial role in price stability, governments can and should champion policies to discourage fossil fuel use,” says Kelly. “This includes maintaining current actions such as carbon pricing, fuel taxation, and fossil fuel subsidy reform. But these efforts must be balanced with policies that drive energy efficiency, fuel switching, and renewable energy measures. Supporting consumers in adopting alternatives to fossil fuels will help lower their cost of living while speeding up the transition to more affordable, reliable, efficient and clean energy for Canada.” 

Media contact: 

For more information or to interview Jessica Kelly, please contact Trish Tervit, communications lead: [email protected]  

JULY 10, 2024 –  Recognizing the critical role investors and businesses can play in driving the transition to more equitable, resilient, and sustainable food systems, the Responsible Agricultural Investment (RAI) Tool for Agribusiness offers a practical framework for business leaders to understand what responsible practices look like, identify gaps, and prioritize improvements as they seek to align with international principles.

The tool has been developed by IISD, Cerise+SPTF, and partner organizations with support from the Swiss Agency for Development and Cooperation.

“Responsible investment can play a transformative role in fostering innovation and inclusivity in agricultural value chains,” said Hafiz Mirza, Lead, Responsible Agriculture Investment Research at IISD. “I would encourage any business leader in this sector to try the new tool, discover opportunities for improvement, and start thinking about how to take action.”

Intended to be used by a wide range of stakeholders engaged in promoting sustainable agricultural investments—such as agribusinesses, financial investors, and industry associations—the tool shows how to create a clear, actionable plan. It has been tested by agribusinesses in Africa and Asia and refined based on their feedback and is designed to be compliant with internationally recognized best practices of sustainable business conduct, such as the principles on responsible investment in the agricultural and food systems (CFS-RAI Principles) and the International Finance Corporation (IFC) Performance Standards.

“This innovative tool not only helps businesses plan to become more sustainable, but it also promotes transparency and accountability—both of which are essential for sustainable development,” says Marion Allet, Head of Environment and Impact at Cerise+SPTF.

You can find out more about the RAI Tool for Agribusiness here.

June 27, 2024 – Yesterday, 26 European Union (EU) member states signed a declaration and endorsed an agreement on the interpretation and application of the Energy Charter Treaty (ECT), according to a press release published by the Belgian Ministry of Foreign Affairs. The agreement will be published in the Official Journal of the EU shortly, as stated in the release. This is an important step to prevent legacy arbitration claims under the treaty, but more remains to be done.

The new agreement—concluded between the EU, Euratom, and their member states—clarifies the common understanding that the ECT and its investor-state dispute settlement (ISDS) mechanism does not and never did apply within the EU. The treaty has drawn growing criticism from EU member states in recent years as it was used by intra-EU investors to circumvent domestic courts in violation of EU law and to challenge member states’ energy transition policies through ISDS. With more than 160 cases to date, it is the investment treaty that has generated the highest number of ISDS claims.

“This new agreement addresses a significant part of the risks still posed by the ECT, but more action is needed to prevent all fossil fuel arbitrations under the treaty in the future,” says Suzy Nikièma, Director, Sustainable Investment at the International Institute for Sustainable Development (IISD). 

Following a failed attempt to reform the ECT, the EU, Euratom, Germany, France, Spain, Portugal, the Netherlands, Luxembourg, Denmark, Poland, Slovenia, Ireland, and the United Kingdom have decided to leave the treaty. These states generally justified their withdrawal with claims that the reform proposal fell short of their expectations and failed to allow for a decarbonization of the energy sector in line with the timetable warranted by the Paris Agreement. 

However, the treaty contains a so-called survival clause that will continue to allow a wide range of fossil fuel companies and other investors with existing investments to sue states for a period of 20 years after their withdrawal. These are investors from the EU with investments in ECT countries other than the EU (outward), or investors from ECT countries other than the EU with investments in the EU (inward). 

“Granting 20 more years of legal privileges to fossil fuel investors is fundamentally incompatible with climate mitigation. With the new agreement, the EU sends a strong signal to tribunals: ISDS claims within the EU under the ECT lack a legal basis. States should now take this as a precedent for wider steps to prevent such claims among all ECT contracting parties,” says Lukas Schaugg, policy advisor at IISD.

The EU and other non-EU contracting parties of the ECT can minimize the impact of this unusual, far-reaching clause through a further agreement modifying the ECT. Lawyers at IISD and ClientEarth have demonstrated that such an agreement is a viable solution under public international law and model text options will be published shortly. 

June 13, 2024 — As interim climate talks draw to a close in Bonn, Germany, attention is turning to national action. Governments are due to submit the next generation of national climate plans, or NDCs, in 2025. These will be the first since the international agreement at COP 28 to transition away from fossil fuels.

Experts from the International Institute for Sustainable Development (IISD) have analyzed the last round of NDCs from the top 20 biggest fossil fuel-producing countries (FF20): Algeria, Australia, Brazil, Canada, China, Germany, India, Indonesia, Iran, Iraq, Kuwait, Norway, Poland, Qatar, Russia, Saudi Arabia, South Africa, Turkey, United Arab Emirates, and the United States. Together, these account for 93% of global coal production, 80% of oil, and 77% of gas.

They found a third (seven) of the FF20 make no mention of fossil fuel production in their NDCs. Six stated an intention to continue or increase production. Only one, the EU, representing coal producers Germany and Poland, mentioned a pathway to decrease production.

Natalie Jones, policy advisor at IISD, says, “The science is clear: there is no room for new fossil fuel infrastructure in any credible pathway to Paris goals, and fossil fuel production and consumption must be rapidly phased out. The time is now for fossil fuel-producing countries to align their climate plans with what the world urgently needs.”

The report identifies five elements governments can include in NDCs and long-term strategies to reflect the outcome of the global stocktake at COP 28:

1. Information on national fossil fuel production, future production plans, reserves, and support.
2. Targets and pathways to wind down fossil fuel production. This could be in the form of a commitment to reduce or phase out fossil fuel production by a target date.
3. Policies and measures to disincentivize or constrain fossil fuel production, for example, moratoriums on development, production and export caps, reform of production subsidies, and increased taxes on extraction.
4. Policies and measures to support workers and communities in the transition and diversify the economy away from fossil fuel production.
5. Information related to equity and international support and cooperation.

Paola Yanguas Parra, policy advisor at IISD, says, "In a world that has agreed to transition away from fossil fuels, producers that keep mining and drilling are vulnerable to market shocks. NDCs and long-term strategies can be used to guide an orderly transition and attract investment into alternative growth sectors.”

Notes for editors

1. How transition away from fossil fuel production can be included in third-generation NDCs and LT-LEDS
2. COP 28 Agreement Signals “Beginning of the End” of the Fossil Fuel Era (UN Climate Change press release)
3. No New Fossil Fuel Projects: The logical first step in a transition to clean energy

Media Contact

Megan Darby, senior communications officer, IISD: [email protected]

June 12, 2024, Cape Town—South Africa can take action to boost the deployment of grid-located batteries through better understanding of the sector, co-operative planning, increasing access to finance, and supporting localized production, new research suggests.

While South Africans are already rapidly installing consumer batteries (located at consumer premises), grid batteries (storage installed on the grid) are an under-recognised part of the solution to the country’s electricity supply issues. 

A report by the International Institute for Sustainable Development (IISD), based on interviews with over 70 experts in the field, identifies a broad lack of understanding of battery opportunities, disjointed planning processes and financial obstacles for energy storage projects as key areas constricting the roll out of grid batteries. 

The second in a two-part series examining the role energy storage can play in resolving South Africa’s energy crisis, the paper, Watts in Store Part 2: Creating an Enabling Environment for the Deployment of Grid Batteries in South Africa, recommends the core steps policy-makers and stakeholders in the energy system may take to foster grid battery deployment. 

These are: to improve understanding of grid batteries at almost every level, from awareness of current battery technology to battery integration into the grid; to promote collaborative energy planning; to facilitate battery developers’ access to multiple revenue streams and upfront investment; and to identify and support local value chain opportunities, such as mineral processing and battery assembly.

“South Africa’s electricity crisis, exemplified by years of damaging loadshedding, means the country desperately needs a coherent electricity supply strategy that aligns with climate change goals. Batteries can play a fundamental role in this,” says Richard Halsey, a policy advisor at IISD and lead author of the report.

“Political will is a crucial piece of the puzzle, while addressing issues with tariffs and revenues linked to battery projects  can provide clarity for potential investors. This will help South Africa to build a dependable, forward-looking electricity supply system.”

The report comes as South Africa faces political upheaval following a general election at the end of May, in which the incumbent ANC party lost its majority for the first time in 30 years. The incoming government therefore has an opportunity to recognise the value grid batteries can provide.  

Meanwhile, plans for major restructuring of the state electricity utility Eskom also opens further doors to creating an enabling environment for the deployment of grid batteries. 

The paper suggests successful battery deployment in regions such as South Australia and California can guide South Africa, but solutions are location specific. Replicable strategies include enabling battery operators to benefit from multiple revenue streams, clear government policy support, and specific financing mechanisms for initial battery projects to help accelerate adoption.

Growing demand for batteries is also an opportunity to boost the South African economy and job creation, due to availability of many of the critical minerals required for both the market-leading lithium-ion batteries and also the vanadium required for vanadium redox flow batteries which due to their longer-duration storage are forecast to play a growing role in the sector.

Grid batteries have only recently gained traction internationally, with most of the world’s capacity installed in just the last 6 years. But growth has been fast, with annual capacity additions increasing significantly each year, with 75% more in 2022 than in 2021, the report notes.

Halsey added: “Grid batteries can bring a new era of flexibility to South Africa’s creaking grid. As well as operating as stand-alone stores of power, grid batteries can also be used to great effect in conjunction with renewables, particularly solar power. With a shift underway in South Africa toward a more open electricity market with competitive trading, there will only be increasing prospects for grid batteries.”

Media contacts:

Richard Halsey, Policy Advisor, Energy – [email protected]

Harry Cockburn, Communications Consultant, Energy – [email protected]
 

June 6, 2024—Nigeria’s push to expand its Liquified Natural Gas (LNG) production could put the country in a precarious economic situation, prolonging its dependency on fossil fuels and leaving it with stranded assets as international demand for gas falls, according to new research by the International Institute for Sustainable Development (IISD).

With the IEA predicting international demand for natural gas will peak this decade amid global decarbonization efforts, there is a “high likelihood” any scale up of LNG production could leave Nigeria with unprofitable and abandoned assets, and reduce the available financing for clean energy sources, warns IISD’s brief A Balancing Act: Considerations for the expansion of liquified natural gas projects in Nigeria.

The paper also found Nigerian LNG exports may struggle to compete in the global market after 2030, while replacing oil revenues with LNG may not generate the expected income.

Bathandwa Vazi, policy advisor at IISD said: “Nigeria’s LNG dash is short-term thinking that could end up costing the country dearly. Economic diversification away from fossil fuels is critical in building a sustainable future for the country, not locking in further dependence on polluting commodities.”

“Nigeria is already up against bigger players in the LNG market, and new LNG developments take 8–10 years to produce gas. As international demand for gas peaks, Nigeria must recognise that a fossil fuel-based economy cannot carry it far into the future.”

Facing declining oil revenues, economic turmoil following the Covid-19 pandemic, and inflated European demand for LNG following Russia’s invasion of Ukraine, Nigeria has moved to address its revenue shortfall by significantly scaling up LNG production.

Oil revenues have long underpinned the Nigerian Treasury, accounting for about two-thirds of government earnings and 90% of its foreign exchange income. However, as production has fallen due to lower levels of investment and regional unrest, there is renewed focus on LNG, which provides considerably smaller, albeit growing, revenues. In 2023, LNG revenues reached NGN 74 billion (USD 51 million), accounting for around 7% of total government revenues.

As of 2022, Nigeria was already the sixth-largest LNG exporter worldwide, with a 6% market share. As oil contributes less to revenues, the government plans to build on its existing LNG developments, with ministers declaring 2021–2030 “the decade of gas”.

Currently Nigeria has six operational LNG terminals; nine more are proposed, with LNG construction investment totalling NGN 28.3 trillion (USD 18.5 billion).

But to replace Nigeria’s falling oil revenues, LNG exports would still have to increase “by an order of magnitude,” IISD experts say. Such a scenario would require sustained international demand and high prices for LNG.

Meanwhile, the assets planned would be operating far beyond the middle of this century. The eventual transition to a low-carbon world, expected to accelerate after 2030, could leave LNG assets stranded as demand dries up.

Underscoring this, the researchers note that Carbon Tracker projects a 69% reduction in Nigeria's fossil fuel revenues over the next two decades if global energy trends shift toward a low-carbon pathway.

Instead of investing overzealously in the fossil fuel economy, Nigeria “must manage its gas ambitions realistically, align with transition plans, and prioritize community development in gas projects,” the paper’s authors write.

Electricity access challenges can be met by adding more sustainable and affordable energy sources into the energy mix, and LNG expansion “should not come at the expense of addressing inequality, energy access, and socio-economic challenges,” the paper says.

Media contacts:

Bathandwa Vazi, Policy Advisor, Energy – [email protected]

Harry Cockburn, Communications Consultant, Energy – [email protected]
 

June 4, 2024, Ottawa—A new report from the International Institute for Sustainable Development (IISD) says liquefied natural gas (LNG) projects in Canada will not only undermine the country’s progress toward its climate goals but are likely to enter an oversupplied market dominated by cheaper producers, notably the United States and Qatar, making it a perilous economic venture. The report calls upon federal and provincial governments to refrain from granting approvals and export licences for new LNG ventures, and to phase out subsidies and other public support for existing projects.  

Other findings include the following: 

• New LNG facilities will undermine Canada’s domestic and international climate commitments through increased upstream and midstream emissions and, more critically, by diverting scarce financial and clean energy resources toward fossil fuel production and away from more cost-efficient decarbonization efforts. 

• Canadian LNG projects, most of which are not expected to export until the end of the decade, risk entering an oversupplied market.  

• LNG demand in advanced economies such as Europe and South Korea will soon peak (or has already peaked), with slowing growth in emerging Asian markets. 

• The projected lifespans for pending LNG projects range from 20 to 60 years, requiring long-term investments that risk handcuffing Canada to LNG long after it is no longer economically viable. 

"With 60% of new LNG projects under construction in the U.S. and Qatar, expensive Canadian LNG will face stiff competition from these cheaper, incumbent producers," says Nichole Dusyk, senior policy advisor at IISD and co-author of the report. "Expanding LNG projects in Canada amidst weakening market demand risks creating obsolete infrastructure and inevitable losses in a fiercely competitive market—with taxpayers carrying significant risk." 

The United Nations International Panel on Climate Change and the International Energy Agency have concluded that there can be no new long-term oil and gas projects—including Canada’s planned LNG expansion—if the 1.5°C temperature target to avoid the worst climate impacts is to be achieved.  

“Canadian LNG production emits greenhouse gases at all stages of the value chain, putting it at odds with domestic climate obligations,” said Steven Haig, policy analyst and co-author of the brief. “Public and private investment should be directed toward green industries, such as renewable power generation and decarbonizing transportation.”  

The report urges Canadian governments to protect the economy, environment, and taxpayers by mitigating the risks associated with LNG expansion. This can be achieved by refraining from granting approvals and export licences for new LNG ventures and phasing out subsidies and other public support for existing projects.  

Media contact: 

For more information or to interview one of the report authors, please contact Trish Tervit, communications lead, Energy Team: [email protected] 

Existing fossil fuel projects are sufficient to meet projected energy demands in a global transition to net zero emissions, finds a new study by researchers from University College London (UCL) and the International Institute for Sustainable Development (IISD).

Their policy paper, published in Science, argues that stopping new fossil fuel projects is a crucial step for countries to achieve their climate goals. It recommends that governments legislate to ban new fossil fuel projects as this is easier politically, economically, and legally than closing operational projects early.

The researchers analysed the projected future global demand for oil and gas production, and for coal- and gas-fired power generation, under a range of modelled scenarios that limit climate change to 1.5 degrees Celsius above pre-industrial levels.

The team found that existing fossil fuel capacity is sufficient to meet the energy demands under these scenarios while the planet transitions to clean and renewable energy – and that new fossil fuel projects are not necessary.

The research extends work by the International Energy Agency which found in a 2021 report (updated in 2023) that no new fossil fuel extraction projects are needed in the transition to net zero emissions by 2050.

The research team’s new work expands on this by analysing a broad range of scenarios compiled for the United Nations Intergovernmental Panel on Climate Change’s (IPCC) Sixth Assessment Report that limit climate change to 1.5°C above preindustrial levels. Their analysis found that in addition to not needing new fossil fuel extraction, no new coal- and gas-fired power generation was needed.

The research comes at a time of growing contradictions between rhetoric and practice concerning the energy transition. In December 2023 at COP 28, UN member nations announced that they agreed in principle to work towards “transitioning away from fossil fuels in energy systems.” However, since that proclamation was announced, the global production and use of fossil fuels has continued to expand, with many governments and fossil fuel industry players claiming that new fossil fuel projects will be needed during the transition to net zero. The new UCL–IISD research contradicts that claim.

The researchers go on to recommend a ‘no new fossil fuels’ policy, that would mean preventing new projects for the exploration and extraction of any coal, oil, or natural gas reserves. It would also prevent the construction of any new fossil fuel power plants.
Synthesising evidence from economics, political science, and law, the authors find benefits of this approach for the feasibility of the transition: stopping new projects is less costly, faces fewer legal hurdles, and is politically easier than trying to phase-out existing capacity early.

Drawing lessons from historical processes of social-moral norm change, the researchers find that governments, by banning new fossil fuel projects, and civil society, by advocating such bans, can help to build a global norm against new fossil fuel projects.
Lead author Dr Fergus Green (UCL Department of Political Science) said: “Our research draws lessons from past shifts in global ethical norms, such as slavery and the testing of nuclear weapons. These cases show that norms resonate when they carry simple demands to which powerful actors can be held immediately accountable. Complex, long-term goals like ‘net zero emissions by 2050’ lack these features, but ‘no new fossil fuel projects’ is a clear and immediate demand, against which all current governments, and the fossil fuel industry, can rightly be judged. It should serve as a litmus test of whether a government is serious about tackling climate change: if they’re allowing new fossil fuel projects, then they’re not serious.”

Co-author Dr Steve Pye (UCL Energy Institute) said: “Importantly, our research establishes that there is a rigorous scientific basis for the proposed norm by showing that there is no need for new fossil fuel projects. The clarity that this norm brings should help focus policy on targeting the required ambitious scaling of renewable and clean energy investment, whilst managing the decline of fossil fuel infrastructure in an equitable and just way.”

Co-author Greg Muttitt (Senior Associate, IISD) said: “Our research draws on a large range of scientific evidence, including climate scenarios from the IPCC, but its message to governments and fossil fuel companies is very simple: There is no room for new fossil fuel projects in a 1.5°C-aligned world. Achieving the Paris Agreement goals means governments need to stop issuing permits for new fossil fuel exploration, production, or power generation projects.”

Co-author Olivier Bois von Kursk (Policy Advisor, IISD) said: “No new fossil fuel projects are necessary to meet the 1.5°C-aligned energy demand. Representative 1.5°C scenarios show that a significant share of existing fossil fuel capital stock will become stranded if we are to reach net zero emissions by 2050. Establishing a ‘No New Fossil’ norm increases the likelihood of staying within the 1.5°C limit while minimising the economic, political and legal challenges associated with ‘stranding’ fossil fuel capacity.”

Notes to Editors

For more information or to speak to the researchers involved, please contact Michael Lucibella, UCL Media Relations. T: +44 (0)75 3941 0389, E: [email protected] or Megan Darby, Senior Communications Officer, IISD. E: [email protected].

WINNIPEG  – A new 3-year project will reduce climate-fuelled flood risks and enhance the resilience of approximately 2.2 million people in three sub-Saharan African cities while promoting gender equality and social inclusion and strengthening biodiversity protection.

The Scaling Urban Nature-Based Solutions for Climate Adaptation in Sub-Saharan Africa (SUNCASA) project will undertake watershed restoration and adaptation actions in Dire Dawa (Ethiopia), Kigali (Rwanda), and Johannesburg (South Africa). Jointly managed by the International Institute for Sustainable Development (IISD) and the World Resources Institute (WRI)—and guided and implemented by a wide array of local partners, policy-makers, and stakeholders—SUNCASA will directly benefit approximately 2.2 million people in high-flood-risk areas, while indirectly benefiting an estimated 7 million residents in these cities. The project is funded by Global Affairs Canada through the Partnering for Climate Program. Approximately CAD 29 million will be invested in the three cities until 2026.

Specific actions were identified through multiple rounds of engagements with key stakeholders in each of the three cities. Through the City Water Resilience Approach, stakeholders worked collaboratively to develop high-impact solutions to critical resilience challenges. These include:

• catchment restoration in the Dechatu River in Dire Dawa for flood risk reduction and water stress mitigation, and urban tree planting and green space development to alleviate the heat island effect in lower-income neighbourhoods;
• restoration of six critical upstream micro-catchments of the lower Nyabarongo River watershed in Kigali to reduce downstream floods and landslides risks;
• removal of alien invasive species, afforestation, reforestation, and riverbank restoration in the Johannesburg Jukskei River catchments to reduce flood risk and increase water quality.

Challenges in Dire Dawa: Flash floods continue to pose a significant risk to Dire Dawa’s residents, while catchment degradation has affected water security and the livelihoods of vulnerable communities. In Dire Dawa, SUNCASA will work with women farmers and local small and medium-sized enterprises to rehabilitate the Dechatu Catchment through a combination of reforestation and agroforestry, helping to address water stress and enhance the economic resilience of the most vulnerable. The project will also aim to reduce stormwater runoff and heat within the city through tree-planting campaigns that target low-income neighbourhoods.

Challenges in Johannesburg: Invasive species in wetlands and river systems threaten the water security of the City of Johannesburg, increasing flood risk and impacting biodiversity. The SUNCASA project will work with local communities along the Jukskei River Catchment to remove alien invasive species clogging waterways, helping to reduce flood risk by rehabilitating riverbanks. The project will directly support 14 local cooperatives, expanding employment opportunities and ensuring women and youth leadership in ecosystem conservation.

Challenges in Kigali: Climate change and urban expansion are increasing the impact of flood events and landslides in Kigali. The SUNCASA project will support local farmers and women-led cooperatives in rehabilitating the Kigali sub-catchment, reducing flood risks in densely populated urban areas. Restoration efforts will prioritize the protection of agricultural lands and the expansion of urban forest cover, reducing soil loss, improving agricultural productivity, and boosting air quality.

By choosing actions that reinforce or restore natural solutions for managing water—and by selecting projects that engage and strongly benefit women and vulnerable communities in these cities—the SUNCASA project will demonstrate the “triple win” possible for climate, society, and biodiversity with gender-responsive nature-based solutions.

Quotes

"As Mayor of the Dire Dawa Administration, it is my priority to rally political support for solutions that help our administration address citizens’ vulnerability to climate change-related disasters, like rapid onset floods. The Dire Dawa Administration welcomes the recent announcement from Global Affairs Canada regarding new funding to support locally led nature-based solutions for the rehabilitation of the Awash River Basin’s Eastern Catchment. This investment means more women and youth at the forefront of our climate adaptation measures, helping to boost water security not only in Dire Dawa but in our neighbouring cities as well."

H.E. Kedir Juhar, Mayor of Dire Dawa, Ethiopia

“The City of Kigali welcomes the recent commitment from the Government of Canada to support the city’s green aspirations with the resources needed to increase its climate resilience through nature-based solutions for watershed restoration targeting urban high-risk areas. We look forward to advancing this work with our partners, in alignment with Kigali’s ambitious green development goals, and strengthening communities against climate impacts.”

Lord Mayor Samuel Dusengiyumva, Mayor of Kigali, Rwanda

"Flood protection is a critical aspect of the City of Johannesburg's Water Security Strategy. Exacerbated by climate change and urbanization, flooding poses a significant risk to lives, livelihoods, and infrastructure, causing devastation and disruption on a massive scale. Through the protection and restoration of ecosystems, we can address flood risk across the city while enhancing water quality, preserving critical habitats, and safeguarding ecological integrity for generations to come. This is where the SUNCASA project comes into play, as it will implement the nature-based solutions outlined in our strategy."

Kabelo Gwamanda, Mayor of Johannesburg, South Africa

“Canada is proud to continuously partner with IISD, a Canadian organization that leads the charge for sustainable development around the world. Together, we are pleased to support the cities of Johannesburg, Dire Dawa, and Kigali in advancing their climate change adaptation, biodiversity conservation, and livelihood priorities through gender-responsive nature-based solutions. As part of Canada’s CAD 5.3 billion Climate Finance commitment (2021–2026), Partnering for Climate supports projects that use nature-based solutions to help communities and people in sub-Saharan Africa become more resilient to the impacts of climate change.”

Honourable Ahmed Hussen, Canada’s Minister of International Development

"Despite their wide-ranging benefits for people and the planet, nature-based solutions are not being scaled up enough to fulfill their potential. SUNCASA is a tremendous opportunity to advance this cause. IISD is pleased to be applying our experience with nature-based solutions to the management of this project in partnership with WRI, and we look forward to working with our wide array of local partners to implement it for the benefit of communities and ecosystems in sub-Saharan Africa.”

Patricia Fuller, CEO and President, IISD

“Africa’s cities are the fastest growing in the world. Yet half of these urban residents are living in informal settlements and are dangerously threatened by climate risks from droughts, floods, and extreme heat. To address these challenges, we must harness the power of nature—trees and other forms of “green infrastructure” that can clean and cool the air, build flood resilience, and improve people’s health and well-being. Canada’s Partnering for Climate Initiative will allow IISD and WRI to work with cities across the continent to mobilize political support, deliver technical assistance, and unlock finance, effectively streamlining the process to scale up nature-based solutions to support vulnerable communities.”

Ani Dasgupta, President and CEO, World Resources Institute

About IISD

The International Institute for Sustainable Development (IISD) is an award-winning independent think tank working to accelerate solutions for a stable climate, sustainable resource management, and fair economies. Our work inspires better decisions and sparks meaningful action to help people and the planet thrive. We shine a light on what can be achieved when governments, businesses, non-profits, and communities come together. IISD’s staff of more than 250 experts come from across the globe and from many disciplines. With offices in Winnipeg, Geneva, Ottawa, and Toronto, our work affects lives in nearly 100 countries.

About WRI

Founded in 1982, the World Resources Institute (WRI) is an independent, nonprofit global research organization that turns big ideas into action at the nexus of environment, economic opportunity, and human well-being. We are working to address seven critical challenges that the world must overcome this decade to secure a sustainable future for people and the planet: climate change, energy, food, forests, water, sustainable cities, and the ocean. WRI has a global staff of over 1,800 people with work spanning 60 countries. We have offices in Africa, Brazil, China, Europe, India, Indonesia, Mexico, Colombia, and the United States, as well as a growing presence in other countries and regions.

At the COP 28 climate summit in Dubai, 198 governments agreed to transition away from fossil fuels. That means phasing out oil and gas, as well as coal. Yet, most oil and gas producers plan to drill more, not less. Some countries are dependent on revenues from oil and gas, or politically entangled with the industry. An unmanaged transition could get ugly. What will it take to deliver a fast, fair, and orderly phase-out?

In Transitioning Away From Oil and Gas: A Production Phase-out Primer, published today, experts at the International Institute for Sustainable Development outline the state of play and recommend next steps for governments, international organizations, and other stakeholders

Here are the main asks:

1. Stop issuing oil and gas licences. There is no room for new oil and gas fields under a 1.5°C warming limit. New production will either drive dangerous levels of warming or crash in value when climate action destroys demand.
2. End public finance and subsidies to oil and gas production. Use valuable public resources to scale up clean energy and support people, not fossil fuels. Transform national oil companies’ business models from barrels to electrons.
3. Make national phase-out plans as part of the next round of nationally determined contributions (NDCs) to the Paris Agreement due in 2025. Global oil and gas production falls at least 65% from 2020 to 2050 in credible 1.5°C-aligned pathways. An equitable distribution of effort takes into account human rights, historic responsibility, and social and economic capacity.
4. Remove legal barriers to phase-out, like the thousands of investment treaties that allow oil and gas companies to privately sue governments for implementing climate policies.
5. Mobilize support for vulnerable oil and gas producers in the Global South to restore degraded environments, reskill workers, and seize the opportunities of sustainable growth industries.

For more information or to interview one of the report authors, please contact Megan Darby, senior communications officer: [email protected]