Even as US and China begin talks, the Global South should not play ball and reconsider old ideas of self-reliance and regional trade, say experts
Visual: Riddhi Tandon
Trump’s trade war revives a vital old question: Can the Global South go its own way?
Even as US and China begin talks, the Global South should not play ball and reconsider old ideas of self-reliance and regional trade, say experts
Back in 1980, a clutch of African leaders tried to break from history. Over the past hundred years, the continent had been ravaged by colonialism. Even after independence, trade links between colonial powers and African nations had not changed. Africa continued to export raw materials and import expensive finished goods.
That year, the leaders proposed a decoupling of Africa from the global economy so that the continent could build up its industrial economy through trade between member-states. Once that was done, they said, Africa would re-enter global trade as a more equal partner.
The Lagos Plan of Action, as it was called, wanted to link African nations’ economic futures to those of their equally fragile neighbours, rebuilding all through south-south trade.
The idea died untested. As Nigerian economist Claude Ake wrote in ‘Democracy and Development in Africa‘, pressure from the International Monetary Fund (IMF) was amongst the reasons for the plan never taking off. Another 50 years passed. And then, partly due to Donald Trump, the idea began to gain salience again.
That old idea — of turning away from the West and rebuilding through trade with each other — is stirring again. This time, the trigger wasn’t colonialism, but Trump. His latest tariff shock has left developing nations scrambling, uncertain of where to turn. And yet, in this disruption lies possibility. Across Asia, Africa and Latin America, countries are beginning to look inward — and sideways — at their neighbours, wondering if this time, they can do what the Lagos Plan once set out to do: build resilience from within, and return to the global stage on more equal terms.
Can south:south cooperation take off this time?
“Liberation Day”
The backstory here is well-known.
On April 2, using access to the US market as an economic bludgeon, Trump slapped steep tariffs on virtually all goods entering the USA — and demanded trade concessions from exporting countries. China was singled out in particular.
The aftermath has been monumental. Over the last month-and-a-half, Trump’s tariff shock has not only disrupted supply chains, unsettled financial markets and stoked fears of a sharp downturn in global growth — it has left developing countries staring at an economic crisis.
In the days after Trump’s announcement, Lesotho, known as the “denim capital of Africa”, hit the headlines. A 50% tariff had been slapped onto this tiny, land-locked country of just 2.3 million people. “Thabo Qeshi, head of the country’s main business chamber, said his phone had not stopped ringing,” wrote FT. “Union workers, business people, transport workers — everyone is panicking,” he told the newspaper, adding: “That 50% tariff means we might lose the whole textile industry.” Or take Bangladesh. Garment exports, with a fifth going to the USA, is one of the principal economic engines of the country. If exports fall, it, too, will see firm closures, job losses and a drop in tax revenues.
The Trump administration’s response, that countries have to buy an equivalent value of their exports from the USA, is not much of a solution. Amongst the US’ biggest exports are oil, gas, machinery and weapons. It’s reasonable to assume that Bangladesh wasn’t already buying these from the USA either because it didn’t need these or because it had cheaper alternatives. If it buys costlier LNG from the USA, it will need to slash budgets elsewhere.
And so, over the past 50 days, apart from initiating talks with the USA, countries have responded in two other ways.
Countries like China are focusing on greater growth from domestic markets. Apart from that, it — and smaller countries — are seeking to expand trade within the Global South. Brazil and Mexico, for instance, are looking to trade more with each other. Brazil also started to supplant the US as soybean supplier to China — while replacing Chinese textile and footwear exports to the USA.
A new twist in the tale
These measures were still taking shape when fresh news landed last week. After salvos of retaliatory tariffs — as high as 245% on some Chinese products, and as high as 125% on US products — China and the USA began talks.
Their compulsions are well known. Chinese production for the US market is slowing. So is ship traffic to the USA. “Essentially all shipments out of China for major retailers and manufacturers have ceased”, Port of Los Angeles executive director Gene Seroka told WSJ. Essentially, the US will soon see shortages.
“In his first term, Trump was smarter,” economist Jayati Ghosh told CarbonCopy. “What he called a trade war last time was actually a technology war. Trump began denying technologies to China.” Thereafter, Biden followed through with measures like the CHIPS Act. “What they are trying to do now — decouple — is so much harder,” she said. “That is like removing organs from a body. Far more than US-Canada or US-Mexico, the US and China are closely connected.”
The stakes are relatively lower for China. The country has been bringing down the US’ share in its exports for some time now — partly by routing exports through countries like Vietnam; and partly by investing in emerging technologies like renewable energy which are harder for importing nations to replace unlike, say, soybeans — and is consequently more resilient than before.
That said, China is getting worried as well. It needs external markets to absorb products from its vast factories. And yet, as countries not only start trade talks with the US, but also try to ward off Chinese dumping in domestic markets, it has a problem. “Behind closed doors, Chinese officials have grown increasingly alarmed about tariffs’ impact on the economy and the risk of isolation as China’s trading partners have started negotiating deals with Washington,” reported Reuters.
For now, though, both countries have paused heavy tariffs on each other. The US brought down the tariff on Chinese goods from 145% to 30%, while China brought down the tariff on the US from 125% to 10%. With this, the trade war between the two seems to be winding down.
And yet, this is not the end of the story.
Why the world won’t go back to how it was on April 1
CarbonCopy asked economist Jayati Ghosh about the US-China talks. “I don’t think these talks will have a dramatic impact,” she said. “The move towards greater south-south trade will continue.”
Four factors are at work here. One, the US’ individual deals with trading partners have to be hammered out. Once those are inked, countries have to figure if gains from US trade are worth the concessions — like buying expensive gas or weapon platforms — sought by the Trump administration.
Two. As Trump uses trade as a negotiating instrument, political risk will be a staple of US trade relations for at least the next three years. Take Lesotho. The country was one of the big gainers from Bill Clinton’s African Growth and Opportunity Act (Agoa), which offered African countries tariff-free access to the US market. That window, however, was summarily closed.
In his trip this month to China, Brazilian president Luiz Inacio Lula da Silva commented on this political risk saying he could not accept the measures “that the president of the US tried to impose on planet Earth, from one day to the next”. Hours later, Colombia’s president, Gustavo Petro, too, said the South American country should not “only look one way” towards the US. Or take India and Pakistan. While trying to broker the ceasefire, Trump said he threatened to cut off trade with both countries.
Apart from these, said Ghosh, there is rising bitterness towards developed countries within the Global South. “The big thing that changed all this is the pandemic,” she said. At that time, for instance, the west had stockpiled vaccines. “Since then, the African countries have been more aware that the west can abandon them all too easily.”
For this reason, she said, internal trade within Africa has been growing. “The biggest increase in African manufacturing exports is within Africa,” she said. With the tariff shock, that consensus has deepened further.
Finally, while Trump seeks to capitalise on the US’ status as the world’s biggest consumer economy, his timing is off. Over the past 20 or so years, the number of consuming elites has also grown in a clutch of countries in Asia, Latin America and parts of Africa — apart from the ones in Europe. If anything, till negotiations conclude, the US will see declines in investment and economic activity.
Both factors will erode its attractiveness as a market. The FT captured the momentousness well. “To America’s trading partners, April 2 will mark the end of a global trading era,” it wrote. “This was no “liberation day” for America,” it wrote elsewhere. “If Trump gets his way, the US economy will be isolated from the very system that has powered its centurly long rise.”
The question lies elsewhere. Can the Global South capitalise on this moment?
The pipelines of trade
What does such a transition — where countries trade less with the US and more amongst each other — entail? The first requirement, of countries willing to pivot, is in place. “We will have some countries that will continue to depend on US trade,” said Ghosh. “But more and more countries will want to diversify.”
Countries even have trading blocs they can use. Africa has the African Continental Free Trade Area Agreement, a modern-day equivalent of the Lagos Plan and an African equivalent of the European Union. The Global South from the world over has BRICS-Plus where Brazil, Russia, India, China and South Africa have been joined by Iran, Saudi Arabia, UAE, Egypt and Ethiopia. “As these countries step in, a relatively self-sufficient trading bloc — with everything from oil to industry to agriculture — which is less dependent on the USA takes shape,” said Ghosh.
Between the EU (freshly alienated by Trump) and China, capital is not a problem either. “It’s so telling that CATL is doing its IPO in Hong Kong,” said a Hong Kong-based economic commentator on the condition of anonymity. “They do not want to be under US regulators. And they clearly think they can raise funds without needing to list only in the USA.”
But BRICS-plus will need to grow beyond these 11 member-states. As poorer countries come in as well, economic differences within the bloc will grow. To avoid the risk of exploitative trade, BRICS-plus will need to create a more just trading system. What rules and systems will that entail?
That is important because the current multilateral trade system — which comprises both Bretton Woods institutions like the IMF, World Bank and the WTO as well as its components like SWIFT — came into being during the Cold War and thereafter adapted their rules and processes for a world where the US is hegemonic.
“The IMF is deeply important for developing countries,” said Ghosh. “But here, for a move to pass, 85% of the votes should be in favour. The US, however, has 16.4% vote in the IMF and 15.8% in the World Bank. They have tried to get the IMF to go after China and the IMF has been complying.” She also flagged the Biden administration’s decision to sanction Russia. “These decisions were completely contrary to how the global financial system works,” she said. “You have to honour your contracts.”
That said, the problem runs deeper than just the Bretton Woods institutions. The pipelines of global trade – be it the Clearing House Interbank Payments System (CHIPS) or the Society for Worldwide Interbank Financial Telecommunication (SWIFT), both of which transmit money across borders or CLS Group Holdings (which protects from foreign exchange settlement risk) – increasingly serve US interests.
For instance, when Huawei finance chief Meng Wanzhou was accused of violating US sanctions on Iran, a part of the case stood on SWIFT’s decision to route money through CHIPS (which is on American soil) instead of using the Clearing House Automated Transfer System (CHATS), an offshore dollar clearing system in Hong Kong.
Or take CLS. It addresses the risk that one party in a foreign exchange trade might deliver their currency, but the other fails to deliver their counter-currency. The catch is: it only handles 18 currencies — and China’s Remnimbi, Brazil’s Real, and India’s Rupee are not in that list.
In effect, trade where emerging-market currencies are swapped against the dollar or the euro are unprotected from payment-versus-payment risk — a real disincentive to trade in anything but these 18 currencies.
This is the most insane part of the new US export controls.
— Arnaud Bertrand (@RnaudBertrand) May 15, 2025
If you're a Chinese company, in China, with zero relations to the US and you buy Huawei Ascend chips, then you're held criminally liable for doing so under US extraterritorial law.
With all the consequences that… https://t.co/imtKUbzaEQ
Apart from these pipelines of trade, one more factor complicates the move towards greater south-south trade. Trump is starting to mix national security, the US’ ability to provide security guarantees, and trade negotiations, says Amitendu Palit, a senior research fellow and research lead for trade and economics at the Institute of South Asian Studies at the National University of Singapore.
This was evident in Trump’s claim last week to have brokered peace in the India-Pakistan escalation, and in his critical minerals deal with war-torn Ukraine in return for investments for reconstruction. This admixture can both push developing countries away from the US while binding others, through unfair trade deals, yet more closely to the USA.
“There’s a dangerous trend that we are getting to see here,” Palit said in a television interview. “Not all countries will be able to resist.”
Capitalising on this moment
The difference between colonialism and neo-colonialism is one of disguise.
The underlying trade relations remained much the same. In that sense, Trump’s tariff shock is a chance for the Global South to reimagine and redo its trade equations.
“The BRICS need to create an alternative to SWIFT,” said Ghosh. “China has created a central bank digital currency. India should, too.” Riding on these — and on countries diversifying beyond the dollar to gold or other currencies — the world can have a trading system between a range of currencies. “The dollar will still be used, but it will lose its hegemonic status,” she said.
The core issue here is about leadership. “There is an absence of global strategic thinking,” said Ghosh that morning. “Trump has starved WHO for funds. All it needs is $2.1 billion for two years. The EU could give this sum without blinking an eye. So could India or China. The World Food Programme needs even less — just $400 million. But no country is stepping up to fill these gaps.”
That is the question for this moment. Each of the four forces listed above – possible unattractiveness of US trade once coupled with purchase obligations; political risk in US trade ties; rising anger within the Global South towards developed countries; and waning of the US consumer economy – has a certain momentum to them.
If these unfold on their own, the Global South might see nothing more than a series of bilateral deals – like the currency swap agreement between Brazil and China. However, if it creates structures for greater south-south trade, it might even deliver on the Bandung Spirit, invoked at the 1955 conference in Indonesia where the leaders of newly-independent countries had promised to create a New Asia and a New Africa.
Monsoon over Andamans. Photo: Wikimedia Commons
Southwest monsoon enters Andaman and Nicobar region, a week in advance
Southwest Monsoon entered a week ahead of its scheduled time of arrival (May 21) over parts of the Andaman Sea, southern Bay of Bengal and the Andaman and Nicobar Island, IMD said. The weather department recorded widespread moderate to heavy rainfall in a few places over the Nicobar Islands, with westerly winds increasing in intensity in the past two days over southern Bay of Bengal, Nicobar Islands and Andaman Sea, reported HT.
“There is a cyclonic circulation over southeast Bay of Bengal, due to which rainfall activity will intensify. Rainfall is increasing and conditions are gradually becoming favourable for the onset of monsoon. A heat low pressure will be created and monsoon may reach parts of Arabian Sea in the next 4-5 days,” Mahesh Palawat of Skymet Weather told the outlet.
Extremely heavy rainfall will occur at isolated places over Meghalaya on May 14, DTE reported citing the India Meteorological Department. In the west, isolated light/moderate rainfall accompanied with thunderstorm, lightning and gusty winds at speeds reaching 30-50 kmph is likely over Konkan and Goa, Madhya Maharashtra and Marathawada during May 14-17 and Gujarat on May 14, the report said. Isolated to scattered light/moderate rainfall is likely over Madhya Pradesh, Vidarbha, Chhattisgarh, West Bengal, Sikkim and Bihar during May 14-17; Jharkhand during May 15-17 and Odisha during May 14-15.
Earlier IMD had said monsoon rains are expected to hit India’s southern coast on May 27, five days earlier than usual, marking the earliest arrival in at least five years, the weather office said, raising hopes for bumper harvests of crops such as rice, corn, and soybean, Reuters reported. The monsoon delivers nearly 70% of the rain that India needs to water farms and recharge aquifers and reservoirs,the newswire said.
Heatwave conditions are likely to continue over some areas of West Bengal till May 15 and likely to commence over Jharkhand from May 13, over Uttar Pradesh from May 14 and over West Rajasthan from May 15, reported HT.
At least 14 dead due to heavy rain in India’s Gujarat
At least 14 people died and 16 others were injured as heavy pre-monsoon showers lashed western state of Gujarat on May 4 and 5, reported Reuters citing state officials. The unseasonal rain across most of the state was driven by a cyclonic circulation in the neighbouring parts of Pakistan and India’s Rajasthan state, according to the India Meteorological Department.
Global warming reaches 1.58°C over 12 months to end-April
New data showed that the monthly average global temperature topped the “1.5°C warming level” for 21 out of the past 22 months, reported the FT. The European planetary data service Copernicus has found that April was the second-hottest recorded at 14.96C, or 1.51°C above the estimated 1850-1900 average. As such, April was just 0.7C cooler than the record set in 2024, while the global average temperature over the past year was 1.58C above the pre-industrial level. “The continued warming comes as efforts to tackle global warming caused by greenhouse gas emissions are set back by competing pressures on governments to respond to trade, defence and other economic demands”
More than 100 dead after floods hit eastern DR Congo
Over 100 people have been killed in flash floods in the Democratic Republic of the Congo, BBC News reported adding: “Torrential rain triggered the flooding overnight in South Kivu, destroying homes and displacing families. The region is approaching the end of its wet season, but further heavy downpours are forecast in the coming days, raising fears of more flooding.”
The floods have “washed away several villages” in the South Kivu province, with “children and elderly people” disproportionately killed, reported Agence France-Presse. It quoted Bernard Akili, a regional official, saying that torrential rains caused the Kasaba River to burst its banks overnight, with the rushing waters “carrying everything in their path, large stones, large trees and mud, before razing the houses on the edge of the lake”.
Earlier an assessment of floods in April by scientists at the World Weather Attribution found that high vulnerability, fuelled by extreme conflict in eastern DRC, was a major factor in why the disaster was so deadly.
Rain events to increase in South Asia due to rapid Arctic sea ice decline: Study
A new study published in IOP Science said a rapid and significant decline in Arctic sea ice will lead to an increase in intense precipitation events (IPEs) across South Asia, exposing people to disasters associated with extreme rain, reported HT.
The Arctic sea ice decline has been accelerating with climate change, the newspaper said, citing the research paper published on May 6. The report said that intense rain events, like those recorded during the 2018 floods in Kerala or the 2013 floods in Uttarakhand, will increase in frequency. Both of these events were intense precipitation events. Rainfall events that exceed a threshold of 150 mm day−1 (in a grid point) are counted as extreme rainfall events.
Climate change intensified deadly April rainfall in US south and midwest: Study
Climate change intensified deadly rainfall in Arkansas, Kentucky, Tennessee and other states in early April and made those storms more likely to occur, according to an analysis by the World Weather Attribution group of scientists, reported The Independent. The newspaper said a series of storms unleashed tornadoes, strong winds and extreme rainfall in the central Mississippi Valley region from April 3-6 and caused at least 24 deaths. Homes, roads and vehicles were inundated and 15 deaths were likely caused by catastrophic floods, the report said.
The researchers found that climate change made the heavy rainfall 40% more likely and 9% more intense than in pre-industrial times, reported Mongabay.
Centre bans use of several medically important antimicrobials in aquaculture sector
The Union Ministry of Commerce and Industry prohibited use of several medically important antimicrobials in the aquaculture sector. Overuse and misuse of antibiotics in food-animal production settings (poultry, dairy and aquaculture) for purposes such as promoting growth or preventing or controlling diseases is known. This has been attributed as one of the drivers of antimicrobial resistance (AMR), an important public health concern, reported DTE.
The presence of resistant bacteria or residual antibiotics in food products such as meat, milk or fish is also a food safety concern, the report added. Researchers have estimated that 10,259 tonnes of antimicrobials were used globally in aquaculture in 2017, and their use will increase by 33 per cent to 13,600 tonnes annually by 2030, the outlet said adding that the most significant portion of worldwide antimicrobial use in aquaculture is in the Asia-Pacific area.
Terracotta rings may help save sinking Sundarbans and regenerate mangrove
A humble terracotta ring could change the fate of the Sundarbans wetlands, Mongabay reported. The outlet said arrangements of large terracotta rings, ranging from two to four feet in diameter and standing at about a foot or two in height, may help save sinking islands in the Sundarbans Biosphere Reserve. These rings, installed in grids measuring 92 metres in length along the embankment, and about 6.5 metres wide along its slope, are silt traps.
Terracotta rings, when installed as silt traps along estuarine embankments in the Sundarbans, effectively capture and retain sediment, reducing erosion. The sediment accumulation creates a suitable substrate for mangrove seed settlement and growth, leading to increased natural regeneration. Field observations over a 16-month period indicate that these silt traps contribute to stabilizing the shoreline, mitigating coastal degradation. This nature-based approach offers a cost-effective, scalable strategy for sustainable coastal protection in vulnerable regions.
Tree leaves in Western Ghats crossing critical heat thresholds: Study
Scientists found that leaves of several tropical forest and agroforestry species in the Western Ghats are already reaching temperatures that could push them toward irreversible heat damage, reported DTE.
Thirteen agroforestry species and four native forest species were monitored over a 4.5-month period in 2023 at Hosagadde village near Sirsi in Karnataka — an area that frequently experiences high air temperatures, sometimes above 40 degrees Celsius.
They found that many plants were exposed to leaf temperatures surpassing critical physiological thresholds, raising concerns over how tropical species may respond to rising global temperatures.
Photo: Wikimedia Commons
India’s green cover grew to 25.17% of geographical area: Report
India’s forest and tree cover now stands at 25.17%, with initiatives driving growth despite concerns over degradation and methodology flaws, HT reported citing the environment ministry.
The newspaper had earlier reported that despite headline growth in green cover, the ISFR 2023 highlights concerning trends, including the degradation of large forest tracts, increased plantations, and ambiguity regarding “unclassed forests.” Experts warned these developments could seriously impact biodiversity, forest-dependent communities, and ecosystem services provided by old-growth forests, said the report.
India offers to cut tariff gap by two-thirds in trade pact with Trump
India offered to slash its tariff gap with the US to less than 4% from nearly 13% now, in exchange for an exemption from President Donald Trump’s “current and potential” tariff hikes, two sources said, as both nations move fast to clinch a deal, reported Reuters.
The newswire added that this would mean that the average tariff differential between India and the US, calculated across all products without weighting for trade volume, would be reduced by 9 percentage points, in one of the most sweeping changes to bring down trade barriers in the world’s fifth largest economy.
The report said the United States is India’s largest trading partner, with bilateral trade totalling some $129 billion in 2024. The trade balance is currently in favour of India, which runs a $45.7 billion surplus with the U.S.
Concern over government plans to reduce paddy area by 5 million hectares
Farmers and traders are worried over the government’s intention to reduce the area on which paddy is sown by 5 million hectares (mha), DTE reported. The Centre wants to promote pulses and oilseeds through the move. However, critics said that if farmers are not given safe seeds, support and training in modern farming, then not only will paddy production suffer but there may also be a major reduction in pulses and oilseeds, the report said.
The Centre plans to increase the yield of paddy in a limited area with the help of two new varieties, DRR Dhan 100 (Kamala) and Pusa DST Rice 1, of paddy developed with genome editing technology (CRISPR-Cas). In this, changes are made in the original genes of the plants and no external genes are added. The varieties developed using SDN1 and SDN2 methods are exempt from the bio-security rules of the Government of India and are not classified as genetically modified crops, the outlet continued. .
The report added that contrary to this claim, scientists have said that concerns still remain about the biosafety of gene editing varieties, especially because the CRISPR-Cas technology has not been fully optimised yet. The outlet explained that the technique uses the enzyme ‘Cas’, which goes to a specific part of a gene and cuts and changes the DNA sequence. Scientists believe that this can lead to uncontrolled or unwanted genetic disorders.
US farm agency restores some climate-related webpages after farmer lawsuit
The US Department of Agriculture on Tuesday restored some of its webpages on climate change that had been deleted after US president Donald Trump entered office, following a lawsuit by farmers and environmental groups, Reuters reported.
The newswire also reported that Democratic Senator Adam Schiff on Tuesday urged Commerce Secretary Howard Lutnick and the National Oceanic and Atmospheric Administration’s acting secretary to restore a database that tracked billion-dollar U.S. disasters.
He said its removal prevented lawmakers, insurance companies and taxpayers from seeing the growing cost of more frequent natural disasters and from planning for future extreme weather events.
US: White House bars agencies from using social cost of carbon
The White House “directed federal agencies to stop monetising climate damages when crafting regulations and making other decisions – ” E&E News reported adding “The memo by Jeffrey Clark, President Donald Trump’s acting regulatory chief, directs agencies not to use a social cost of greenhouse gas emissions metric when weighing costs and benefits of federal actions like permits and rules.”
The New York Times reported that the directive “effectively shelves a powerful tool that has been used for more than two decades by the federal government to weigh the costs and benefits of a particular policy or regulation”. It continues: “During the Obama administration, White House economists calculated the social cost of carbon at $42 a tonne. The first Trump administration lowered it to less than $5 a tonne. Under the Biden administration, the cost was adjusted for inflation and jumped to $190 per tonne.”
The new pope, Leo XIV, has spoken out about urgent need for climate change action
The newly elected Pope Leo XIV – formerly known as cardinal Robert Francis Prevost – “seems to have similar views on the environment as his predecessor”, according to Fast Company. Leo has been “outspoken about the need for urgent climate action”.
Washington Post reported that Prevost once urged that society move “from words to action” to address climate change and has warned that “dominion over nature” should not become “tyrannical”.
The Ministry of Environment, Forests and Climate Change (MoEFCC) released a draft notification setting emissions intensity targets for high-emitters, in a move to finalise the country’s first compliance-based carbon market, expected to launch in 2026, reported Mongabay.
The environment news portal said the notification makes it mandatory for industrial units listed to meet reduced emissions targets. Units that reduce emissions beyond the given target can generate credits and sell them in the carbon market. Units that struggle to meet their targets can purchase these credits to meet their goals, the report said.
A fine will be charged by the Central Pollution Control Board (CPCB), if industries fail to comply. “As it stands, 282 industrial units are obligated to meet these new targets, spanning the aluminium, cement, chlor-alkali, and pulp and paper sectors. The cement sector – which accounts for 5.8% of India’s carbon emissions – has the most industries with targets (186),” the report continued.
The government also plans on including the fertiliser, iron, steel, petrochemicals and petroleum refinery sectors at a later stage. Conspicuously missing from the list of obligated industries is the power sector, India’s biggest emitter, responsible for 39.2% of carbon emissions.
Delhi: 12 of 37 sewage treatment plants not meeting standards
Twelve of Delhi Jal Board (DJB) sewage treatment plants (STP) are not meeting prescribed standards. The Delhi Jal Board has a total of 37 sewage treatment plants (STP) in the National Capital Territory of Delhi. Out of this, 25 are meeting all the prescribed standards and running on full utilisation, according to data submitted by DJB to the National Green Tribunal, DTE reported. The report said the data updated by DJB on its website is continuously monitored by the Delhi Pollution Control Committee (DPCC). This was stated by DJB May 8, 2025 in an affidavit filed in compliance with the NGT order of November 22, 2024. The tribunal was examining the issue of improper performance of STPs installed by the DJB along River Yamuna.
Wildfire pollution, more toxic than urban air pollution, enter homes of 1 billion people annually
Toxic pollution from wildfires has entered the homes of more than a billion people annually since 2005, according to new research, reported the Guardian. The climate crisis is driving up the risk of wildfires by increasing heatwaves and droughts, making the issue of wildfire smoke a “pressing global issue”, scientists said.
The newspaper said the tiny particles produced by wildfires can travel thousands of miles and are known to be more toxic than urban air pollution, due to higher concentrations of chemicals that cause inflammation. Wildfire pollution has been linked to early deaths, worsened heart and breathing diseases and premature births, according to the outlet.
The report explained that previous studies analysed outdoor exposure to wildfire smoke, but people spend most of their time indoors, particularly when seeking refuge from wildfires. The new analysis is the first global, high-resolution study of indoor spikes in wildfire pollution.
New construction waste rules back recycling, hold producers accountable
India’s environment ministry introduced Extended Producer Responsibility (EPR), mandatory recycling targets in the construction and demolition (C&D) sector, Mongabay reported.
Under the newly notified Environment (Construction and Demolition) Waste Management Rules, 2025, authorities are now required to include waste recycling provisions in approvals for all construction projects. The rules mandate that EPR targets in construction, reconstruction and demolition projects be regulated through a waste management plan.
When calculating EPR targets, debris such as cement concrete, bricks, plaster, stone, rubble, and ceramics will be considered. However, reusable or resalable materials, such as iron, wood, plastic, metal, and glass, will not be counted towards EPR targets. The new rules also mandate projects with a built-up area of 20,000 square metres or more and road construction projects to use processed waste. Local authorities are responsible for monitoring compliance.
The government released around 14.4 GW of solar tenders in Q1 2025, a 53.1% drop compared to 30.7 GW in Q1 2024, reported Mercom. The Centre set an annual bidding target of 50 GW for renewable projects, with a minimum allocation of 10 GW for wind power. The four implementing agencies, NTPC, NHPC, SECI, and SJVN, together issued tenders amounting to 77% of the 50 GW annual target for FY25, the energy news portal noted. They were responsible for 41% of all solar tenders floated in Q1 2025.
Auction announcements also fell 39% from 10.5 GW in Q4 2024 to 6.4 GW in Q1 2025. The auctioned capacity was down 74.4% YoY from 25 GW. The auctions included standalone solar, solar + storage, and wind-solar hybrid power projects. Auction activity took a hit this quarter, driven by higher domestic module prices and a tight supply of DCR-compliant modules. What’s more concerning is the delay in power sale agreement signings by distribution companies, which has directly impacted developer interest and participation in recent auctions, the report said.
MNRE lowers off-grid solar module efficiency threshold
The Centre reduced the minimum efficiency for crystalline silicon technology modules used in off-grid solar projects to 18% from 19%, reported Mercom. The efficiency for cadmium telluride thin film technology modules remains the same. The changes apply to off-grid solar power projects/applications, including solar lamps, lights, streetlights, and fans, and exclude solar pumps and rooftop systems.
Energy efficiency is a key component of energy transition initiatives. While renewable energy in India has evolved rapidly, energy efficiency has not kept pace. For India’s energy transition programmes to scale quickly, commercial and industrial (C&I) units must adopt energy-efficiency solutions to reduce emissions.
The global wind energy sector dangerously behind in the race against climate change: Study
According to the Global Wind Energy Council (GWEC) report, the current growth projections show the industry will deliver only 77% of the installed capacity required by 2030 to maintain a viable pathway to net-zero emissions. This shortfall threatens international efforts to limit global temperature rise to 1.5°C above pre-industrial levels, as outlined in the Paris Agreement, the report stated, DTE reported.
117 GW of new wind capacity installed worldwide in 2024 — a marginal increase from the 116.6 GW added in 2023. Total global wind power capacity now stands at 1,136 GW.
GWEC suggested this growth remains insufficient when measured against the world’s rapidly increasing electricity needs. China accounted for 70% of all new installations last year. Policy instability in key markets, bureaucratic bottlenecks in project permitting, and inadequate investment in grid infrastructure all contribute to slowing the sector’s expansion.
The report highlighted Africa and the Middle East as regions of exceptional progress, where onshore wind capacity additions doubled in 2024 compared to previous years. However, the offshore wind sector experienced a concerning setback, with only 8 GW of new capacity installed globally in 2024 — representing a 26 per cent decline from the previous year and the lowest figure since 2021.
Germany’s energy transition hits reverse so far in 2025
Clean energy sources generated the smallest amount of Germany’s electricity in over a decade so far in 2025, dealing a blow to the energy transition momentum of Europe’s largest economy, reported Reuters citing data from the energy thinktank Ember. The data revealed that “electricity generation from clean power sources totalled just under 80 terawatt hours (TWh) during the first four months of the year…this is down 16% from the same months in 2024 and is the lowest for that period since at least 2015”, the report noted.
The newswire highlighted that to make up for the drop, fossil fuel output rose by 10% from a year ago and the share of fossil fuels reached its highest level since 2018. “If German firms opt to expand both coal and gas-fired output in order to keep up with overall power demand, total power emissions will keep climbing and could further undermine Germany’s status as a regional energy transition leader,” the report stated.
UK: Every new car park may have to be covered with solar panels
UK ministers are considering introducing a mandate for solar canopies on top of new car parks in England, Wales and Northern Ireland, the Times reported. The government estimated that the owner of an 80-space car park could save about £28,000 on electricity bills by covering it with solar panels and using the electricity rather than exporting it to the grid.
BYD cars. Photo: Wikimedia Commons
BYD keeps eye on Europe, Latin America, while Tesla sees slump
BYD, China’s top automaker, plans to sell half of its cars outside China by 2030, reported Reuters. The growth will primarily be fuelled by expansion in Latin America and Europe, as the US is still restricted to Chinese automakers due to trade restrictions. On the other hand, BYD’s chief rival Tesla saw shipments from its Shanghai plant decline for the seventh consecutive month, according to Bloomberg—58,459 cars were shipped out, which was roughly 6% less than last year.
US states fight back against Trump administration over fund freeze for EV charging
The Trump administration’s actions over freezing funding allocated for setting up EV charging infrastructure is now being challenged in court. A coalition of US states, led by Washington, Colorado and California, filed the lawsuit in US District Court in Seattle, Washington. Their chief complaint is that “federal agencies have unlawfully frozen those funds and halted approvals for new stations, depriving states of critical resources and damaging the growing electric-vehicle industry,” reported The New York Times.
China focuses on new types of energy storage
In order to strengthen its energy security, China has now set its sights on new types of energy storage, which includes electrochemical energy and hydrogen energy storage, according to a report by China Daily. It is expected to exceed 30 GW in 2025. While a new policy on “strengthening the safety management of electrochemical energy storage” has been issued, there is a larger push for evolving energy storage projects from “pilot demonstrations to large-scale commercial applications”. Last year, newly commissioned new energy storage projects were around 43.7 GW — which accounted for 59% of global market share.
iPhone maker Foxconn will now make EVs for Mitsubishi in Taiwan
Foxconn, the Taiwanese electronics manufacturer giant known for making iPhones, is now moving into the EV industry after striking a deal with Japanese auto giants Mitsubishi Motors, reported BBC. A joint venture between Foxconn and Taiwanese car maker Yulon Motors will design and build EVs for Mitsubishi in Taiwan. The new model is expected to be launched in the latter half of 2026 in Australia and New Zealand.
Thermal power plant. Photo: Wikimedia Commons
Green court bars power plants from switching to cheaper coal arbitrarily
The National Green Tribunal (NGT) barred power plants from arbitrarily switching over to cheaper coal without obtaining fresh environmental clearance. The green court cancelled a policy in place for the past five years whereby thermal power plants were allowed to change their “source of coal”, irrespective of ash content, calorific values or potential environmental hazards, reported Newsclick.
The Union Ministry of Environment, Forests & Climate Change had issued the policy through an “office memorandum” dated November 11, 2020, without consultation with stakeholders or conducting scientific assessments.
Setting aside the office memoranda, the court said: “The MoEF&CC [the ministry] which is a regulatory body of the environment and ecology, instead of converting towards higher accountability it is drifting towards dilution in the name of reforms.”
Trump shifts US funds from shutting down foreign fossil fuels to expanding them
Trump is increasingly redirecting foreign finance for helping countries transition to clean energy instead to fossil-fuel expansion, reported Climate Home News. He has scrapped energy transition partnerships with South Africa, Indonesia and Vietnam and is trying to halt US backing for the African Development Bank (AfDB) and multilateral Climate Investment Funds, the report said.
The Trump administration ordered the US Export-Import Bank (EXIM) to back coal power projects abroad and, “seemingly with some success, is putting pressure on the World Bank to fund more fossil fuels,” the climate news portal noted.
Climate campaigners said these changes would foster dependence on coal, oil and gas in developing countries, worsening climate change and holding back economic development, the report said.
New coal supply rules allow private producers long-term contracts without PPAs
India changed rules to allow long-term coal supply contracts to private power producers as it looks to ramp up its coal-powered plant capacity, reported Reuters.
The government also did away with the requirement that coal power producers should have power purchase agreements to sell electricity.
Producers with or without PPAs will be able to get coal on an auction basis for a period of up to 12 months of 1 to 25 years, by paying premium above the notified price and providing the power plants the flexibility to sell the electricity as per their choice. India aims to increase its coal-fired power capacity by 80 GW by 2031-2032 to meet the growing demand for electricity.
Coal India to set up $3 billion worth clean energy projects to boost renewable heft
Coal India will set up clean energy projects of around 4.5 gigawatts at a cost of 250 billion rupees (about $3 billion), as it aims to achieve net zero carbon emissions from its operations, reported Reuters. The state-owned miner has been diversifying beyond coal, which is still key for the country’s power needs, as a part of the wider national aim to achieve net zero carbon emissions by 2070.
Fossil fuel industry emits one-third of global methane: IEA report
The fossil fuel industry constitutes one-third of the global methane emissions from human activities, according to the International Energy Agency’s (IEA) ‘Global Methane Tracker 2025‘, reported Carboncopy.
The report said limited mitigation measures, combined with global production of oil, gas and coal, has kept methane emissions from the energy industry above 120 million tonnes annually, found the report. This is higher than official figures. In fact, satellites detected large leaks from oil and gas facilities, resulting in a record high in 2024, found the report. Around 5% of energy related methane emissions — or 8 million tonnes — came from abandoned coal mines, oil and gas wells, found the report.
China and Russia to build the Russia-China Power of Siberia-2 pipeline
Reuters reported that Russia and China are at an “active stage” of talks on a proposed new gas pipeline, the Power of Siberia-2, carrying Russian gas via Mongolia to China, but are unlikely to sign a contract in the next couple of days, Energy Minister Sergei Tsivilev said, according to Russia state news agency TASS.
Chinese President Xi Jinping visited Moscow for celebrations to mark the 80th anniversary of victory over Nazi Germany in World War Two.
“The companies are working on the contract. They are in the active stage of negotiations, so I think it is unlikely – there are one or two days left – that they will manage to do this before May 9,” he said, referring to Thursday’s war anniversary.
The Power of Siberia-2 is slated to carry 50 billion cubic metres of natural gas a year from the Yamal region in northern Russia to China via Mongolia.
EU plans to end Russian gas imports by end of 2027
The European Commission has published a roadmap for ending reliance on Russian energy, which includes a ban on all Russian gas imports by the end of 2027, reported the BBC.
“A set of legislative proposals will be tabled in June asking all EU member states to make ‘national plans’ to phase out Russian gas, nuclear fuel and oil imports, according to the European Commission,” the news outlet said.
