Thursday, January 01, 2026

At least six killed as protests against Iran's worsening economy spread beyond cities

Protesters march in downtown Tehran, 29 December, 2025
Copyright AP Photo

By Gavin Blackburn
Published o 

Iran's President Masoud Pezeshkian says there is not much he can do as the currency has rapidly depreciated, with $1 now trading at around 1.4 million rials.

At least six people have been killed in widening protests against Iran's worsening economy, authorities said on Thursday, as demonstrations spread outside major cities into rural provinces.

The protests have become the biggest in Iran since 2022, when the death of 22-year-old Mahsa Amini in police custody triggered nationwide demonstrations.

However, the demonstrations have yet to be countrywide and have not been as intense as those surrounding the death of Amini, who was detained over allegedly wearing her hijab incorrectly.

The most-intense violence appeared to strike Azna, a city in Iran's Lorestan province, some 300 kilometers southwest of Tehran.

There, online videos purported to show objects in the street ablaze and gunfire echoing as people shouted: "Shameless! Shameless!"

The semi-official Fars news agency reported three people had been killed. State-run media did not fully acknowledge the violence there or elsewhere.

Protesters march in downtown Tehran, 29 December, 2025 AP Photo

It wasn't clear why there wasn't more reporting over the unrest, but journalists had faced arrest over their reporting in 2022.

The US-based Abdorrahman Boroumand Center for Human Rights in Iran said two people had been killed in Lordegan, identifying the dead as demonstrators.

It also shared a still image of what appeared to be an Iranian police officer, wearing body armour and wielding a shotgun.

Iran's government-run media did not immediately report on the violence in Lordegan.

In 2019, the area around Lordegan saw widespread protests, and demonstrators reportedly damaged government buildings after a report said people there had been infected with HIV by contaminated needles used at a local clinic.

Protests due to economic pressures

A separate demonstration on Wednesday night reportedly led to the death of a 21-year-old volunteer in the Revolutionary Guard (IRGC) Basij force.

The state-run IRNA news agency reported on the IRGC member’s death but did not elaborate.

An Iranian news agency called the Student News Network, which is believed to be close to the Basij force, directly blamed demonstrators for the death, citing comments from Saeed Pourali, a deputy governor in Iran's Lorestan province.

Iranian banknotes displayed by a street money exchanger in downtown Tehran, 28 August, 2025 AP Photo

Another 13 Basij members and police officers suffered injuries, he added.

"The protests that have occurred are due to economic pressures, inflation and currency fluctuations, and are an expression of livelihood concerns," Pourali said.

"The voices of citizens must be heard carefully and tactfully, but people must not allow their demands to be strained by profit-seeking individuals."

Record currency fall

Iran's civilian government under reformist President Masoud Pezeshkian has been trying to signal it wants to negotiate with protesters.

However, Pezeshkian has acknowledged that there is not much he can do as Iran's rial currency has rapidly depreciated, with $1 now trading at around 1.4 million rials.

Meanwhile, state television separately reported on the arrests of seven people, including five it described as monarchists and two others it said had linked to European-based groups.

Iran’s President Masoud Pezeshkian attends the United Nations General Assembly in New York, 25 September, 2025 AP Photo

State TV also said another operation saw security forces confiscate 100 smuggled pistols, without elaborating.

Iran's theocracy had declared Wednesday a public holiday across much of the country, citing cold weather, likely as a bid to get people out of the capital for a long weekend.

The protests, taking root in economic issues, have heard some demonstrators chant slogans against Iran's leadership as well.


Bazaar Strikes Spread To More Cities On


Day 4: Regime Opens Fire On Protesters In


Fasa – OpEd


Iran protests day 4 December 31, 2025. Photo Credit: PMOI

January 1, 2026 
By Mahmoud Hakamian

On Wednesday, December 31, 2025, the nationwide uprising of Iranian market merchants and youth entered its fourth consecutive day, intensifying in scope and ferocity. What began as an economic protest against the collapse of the national currency has rapidly transformed into a full-scale political confrontation with the clerical regime. Reports from across the country indicate that strikes have spread from the capital, Tehran, to major provincial hubs and smaller cities, defying a heavy security crackdown.

The situation escalated significantly in Fasa, Fars Province, where security forces opened fire on protesters who had stormed the governorate building. The regime’s attempt to quell the unrest with brute force, coupled with hollow promises of “dialogue,” appears to have only fueled the public’s resolve, as the traditional economic backbone of society joins the call for regime change.


Escalation and clashes: The battle for Fasa

On Wednesday, the city of Fasa became a flashpoint for the uprising. According to reports from the scene, the protests turned into a direct confrontation with suppression forces. Defiant youth and outraged citizens gathered in front of the governorate building, chanting slogans against the government. The situation deteriorated when protesters managed to break down the doors of the governorate and enter the building.

In a desperate bid to regain control, Islamic Revolutionary Guard Corps (IRGC) units and security forces opened fire on the unarmed crowds. Video footage and reports indicate that agents fired directly at protesters. Despite the use of live ammunition, the people of Fasa continued to resist, forcing some armed security units to retreat in certain areas. To instill fear, the regime deployed military helicopters to patrol the skies over the city.

While the state-run Mehr News Agency, quoting an “informed source,” denied any deaths and claimed the situation was “managed,” they admitted that protesters had breached the entrance of the governorate. However, local reports suggest casualties.


Nationwide strikes: The bazaar stands still

While street clashes erupted in Fasa, the economic heart of Iran remained in a state of paralysis. In Tehran, the Grand Bazaar saw a heavy deployment of security forces, particularly in the Hammam-Chal district and near the Parsian Passage. Reports indicate that the regime has flooded the market with agents to the point where even two people standing together are dispersed. Security forces fired tear gas in the Delgosha Passage to break the resolve of the merchants, but the strike held firm.

Merchants in Tehran are paying a heavy price for their defiance. Shopkeepers in prime locations, who face monthly rents between 1.5 billion and 2.5 billion rials, are incurring daily losses of 100 to 150 million rials by keeping their shutters down. Yet, as one report noted, “This is real protest; when the entire market is in a state of strike and resistance.”

The strikes were not limited to the capital.Kermanshah: A total strike was observed across the Gold Market, Modarres Passage, Valiasr Passage, and the Islamic Bazaar. The regime deployed a line of suppression forces stretching approximately 8 kilometers from Ferdowsi Square to the Garage area. Reports confirmed the brutal beating of a shopkeeper near the Arg Passage, proving that the regime’s talk of “dialogue” is merely a cover for violence.
Isfahan: Strikes hit the mobile phone market on Bozorgmehr Street and areas around Naqsh-e Jahan Square. A brave woman was filmed shouting “Death to the Oppressor” in the city center.

Shiraz: The Vakilabad bazaar and markets on Kazemi Street were largely closed.
Other Cities: Complete or partial strikes were reported in Tabriz (where merchants were threatened with arrest), Ramhormoz, Asadabad (Hamadan), Shirvan (where teachers joined the protests), Dorud, Yasuj, Arak, Dehloran, Kuhdasht, Ganaveh, and Dargahan (Qeshm).
Regime’s panic: Militarization and hollow threats

The rapid spread of the uprising has triggered panic within the regime’s leadership. In a significant move on Wednesday, Supreme Leader Ali Khamenei appointed IRGC Brigadier General Ahmad Vahidi as the Deputy Commander of the IRGC. Vahidi is a notorious figure, the first commander of the terrorist Quds Force, and is wanted internationally for his role in the AMIA bombing in Argentina. His appointment signals the regime’s intent to crush the protests with military force.

Financial software

Simultaneously, the regime is attempting to prevent university students from joining the uprising. Beheshti and Allameh Tabataba’i universities in Tehran announced that all classes would be held online until the end of the term, citing “cold weather” and “energy shortages.” Student organizations have dismissed these reasons as excuses to empty campuses and prevent gatherings.

On the judicial front, Prosecutor General Mohammad Movahedi-Azad warned protesters that any action deemed as “security disruption” would be met with “decisive action.” Furthermore, the Basij organization announced “neighborhood-centered” drills scheduled to run from January 3 to April 2026, a clear attempt to militarize residential areas and intimidate the public.

Economic collapse fueling political fire

The current uprising is rooted in a catastrophic economic collapse. By late 2025, the value of the US dollar reached approximately 1,450,000 rials, and the official annual inflation rate surpassed 42 percent. Food prices have soared by 72 percent, destroying the purchasing power of the people and the viability of businesses. The elimination of subsidies and the introduction of a triple-tiered fuel pricing system have further enraged the public.

However, the slogans chanted in the streets prove that the grievances have moved far beyond economics. In Izeh, the mother of executed protester Mojahed Korkor joined the crowds chanting “Death to Khamenei.” In Kermanshah, youth chanted “No Gaza, No Lebanon, My Life for Iran” and “Death to the oppressor, be it the Shah or the Leader.”

The Bazaar has now decisively turned against the regime. This shift represents a profound fracture in the regime’s traditional support base. As the government spokesperson speaks of “dialogue,” the people in the streets of Iran’s cities have a different answer: “Fire answers fire.”


Mahmoud Hakamian
Mahmoud Hakamian writes for The People’s Mojahedin Organization of Iran (PMOI), also known as Mujahedin-e-Khalgh (MEK)


Protests Push Iran Into a New Phase of Turmoil

  • The sharp plunge of the Iranian rial and worsening inflation have sparked multi-day protests, market closures, and renewed anti-government chants across major cities.

  • Analysts say Iran’s economic crisis is being exacerbated by international isolation and sanctions, limiting the government’s ability to stabilize the economy.

  • Rising domestic unrest coincides with heightened external pressure, as U.S. President Donald Trump signals support for potential Israeli strikes tied to Iran’s missile and nuclear programs.

Iran's leadership is facing mounting pressure from abroad and emerging dissent from within as street protests over its reeling economy and the threat of a new round of military strikes hang over the country.

Demonstrations were reported in several cities, with markets and shops shuttered and students holding rallies at universities, on December 30.

This follows two days of demonstrations that saw security forces launch volleys of tear gas to disperse crowds. People were chanting anti-government slogans to protest a sharp weakening of the currency.

Third Day Of Closures

Videos posted on social media showed a third day of closures and demonstrations.

One video, verified by RFE/RL, showed protesters pushing back security forces in Tehran. Projectiles were thrown at the police, who appeared to fire tear gas at the crowd.

"We're in a new phase of turmoil in the country, which is the phase of the dollarization of the Iranian economy...which led to protests," Tehran-based political analyst Hamid Asefi told RFE/RL's Radio Farda.

"The situation in the bazaars and in the economy does not have a [bright outlook]. We can't say that in 4, 5 months everything will be back to normal," he added.

As Iran reeled from the street protests put down with tear gas and batons, a new threat was looming from across the Atlantic as US President Donald Trump hosted Israeli Prime Minister Benjamin Netanyahu at his Mar-a-Lago residence in Florida.

Asked whether he would support new Israeli military strikes on Iran if it continued with its missile program or nuclear program, Trump was unequivocal.

"If they will continue with the missiles -- yes; the [continuation of its] nuclear [program] -- fast. One will be 'yes, absolutely,' the other one, 'we'll do it immediately.'"

Moments earlier, Trump also noted the domestic challenges facing the Iranian authorities.

"They’ve got a lot of problems in Iran. They have tremendous inflation. Their economy is bust…and I know that people aren’t so happy. But don’t forget, every time they have a riot or somebody forms a group, little or big, they start shooting people,“ he said.

Iranian Rial Plunges Sharply

The Iranian rial is trading at around 1.4 million to the dollar, compared to around 800,000 a year ago, on unofficial markets. Official exchange rates are better but unavailable to many Iranian individuals and businesses.

Many stores have closed as traders shuttered their businesses in protest and joined the demonstrations.

"It's the bread and butter issues: Merchants don't know if they sell their goods today, will they be able to buy more goods and sell them? And if they're supposed to sell them at a huge loss, they come to the streets and make themselves heard," analyst Asefi said.

US-based Iranian political analyst Ali Afshari agreed, underlining the role of Iran's international isolation under US and UN sanctions in pummeling the economy.

"The government cannot resolve this issue fundamentally, it needs a change in foreign policy, which is very difficult due to the stances by the Trump administration," he told RFE/RL.

"It makes it hard to reach an agreement and as long as the sanctions are in place, Iran is isolated. In such a situation, it is very difficult to fix the economy," he added.

The poor state of the economy may not be the only factor driving the renewed protests in Iran.

Crowds were also chanting "death to the dictator," a slogan often heard during the mass nationwide Women, Life, Freedom protests that rocked the country in 2022.

Against this backdrop, the prospect of further strikes by Israel appears to have increased following Netanyahu's visit to Florida.

"They know the consequences. The consequences will be very powerful, maybe more powerful than the last time," Trump said, referring to the 12-day war in June, when Israel and the United States launched a bombing campaign targeting Iranian nuclear and military sites.

"To some extent Netanyahu has shifted the focus, spotlighting the missile threat as the next frontier of confrontation and as justification for potential military action," Sanam Vakil, head of the Africa and Middle East program at the London-based Chatham House think tank, told RFE/RL.

"This does not make military strikes more likely on their own, but it broadens the list of possible triggers and rationales for future action.... Heavy blows to military infrastructure could rally nationalist sentiment around the regime, even as they exacerbate economic and political pressures," she added.

Officials in Tehran have responded to the twin challenges with threats and appeals.

Ali Shamkhani, a senior adviser to Supreme Leader Ayatollah Ali Khamenei, responded to the comments by saying any attack on Iran would prompt "an immediate harsh response."

"Under Iran's defense doctrine, responses are set before threats materialize," Shamkhani wrote on X on December 29, adding that Iran's ‌missile capability? and defense are not "containable or permission-based."

Iranian President Masud Pezeshkian said "the response of the Islamic Republic of Iran to any oppressive aggression will be harsh and regrettable."

Earlier, he said he had asked the Interior Ministry to listen to protesters' "legitimate demands through dialogue with their representatives" -- a different approach than that adopted by security forces in Tehran in recent days.

By RFE/RL

Iranian president urges government to listen to protesting shopkeepers' demands

Iran's President Masoud Pezeshkian said on Tuesday he had asked the interior ministry to "listen to the legitimate demands" of protesters after several days of demonstrations by shopkeepers in Tehran. Student protests also broke out on Tuesday as Iran's embattled currency hit new lows on the unofficial market, state media reported.

Issued on: 30/12/2025 
By: FRANCE 24

Video by: Philip TURLE


Protesters march in downtown Tehran, Iran on December 29, 2025. 
© AP
04:10


Iran's president urged his government to listen to the "legitimate demands" of protesters, state media reported Tuesday, after several days of demonstrations by shopkeepers in Tehran over economic hardships.

Shopkeepers in the capital had shut their stores for the second day in a row on Monday, after Iran's embattled currency hit new lows on the unofficial market.

They were joined on Tuesday by students protesters joining demonstrations in universities in the capital Tehran and the central city of Isfahan, decrying declining living standards, local media reported.

"Demonstrations took place in Tehran at the universities of Beheshti, Khajeh Nasir, Sharif, Amir Kabir, Science and Culture, and Science and Technology, as well as the Isfahan University of Technology," reported Ilna, a news agency affiliated with the labour movement.


The US dollar was trading at around 1.42 million rials on Sunday – compared to 820,000 rials a year ago – and the euro nearing 1.7 million rials, according to price monitoring websites.

"I have asked the Interior Minister to listen to the legitimate demands of the protesters by engaging in dialogue with their representatives so that the government can do everything in its power to resolve the problems and act responsibly," President Masoud Pezeshkian said, according to the state-run IRNA news agency.

Protesters "are demanding immediate government intervention to rein in exchange-rate fluctuations and set out a clear economic strategy", the pro-labour news agency ILNA reported Monday.

Price fluctuations are paralysing the sales of some imported goods, with both sellers and buyers preferring to postpone transactions until the outlook becomes clearer, AFP correspondents noted.

"Continuing to do business under these conditions has become impossible," ILNA quoted protesters as saying.

The conservative-aligned Fars news agency released images showing a crowd of demonstrators occupying a major thoroughfare in central Tehran, known for its many shops.

Another photograph appeared to show tear gas being used to disperse protesters.

"Minor physical clashes were reported ... between some protesters and the security forces," Fars said, warning that such gatherings could lead to instability.
Battered economy

Iranian Chief Justice Gholamhossein Mohseni Ejei called for "the swift punishment of those responsible for currency fluctuations", the justice ministry's Mizan agency reported Monday.

The government has also announced the replacement of the central bank governor.

"By decision of the president, Abdolnasser Hemmati will be appointed governor of the Central Bank," presidency communications official Mehdi Tabatabaei posted on X.

Hemmati is a former economy and finance minister who was dismissed by parliament in March because of the sharp depreciation of the rial.

Pezeshkian delivered on Sunday the budget for the next Persian year to parliament, vowing to fight inflation and the high cost of living.

In December, inflation stood at 52 percent year-on-year, according to official statistics. But this figure still falls far short of many price increases, especially for basic necessities.

The country's economy, already battered by decades of Western sanctions, was further strained after the United Nations in late September reinstated international sanctions linked to the country's nuclear programme that were lifted 10 years ago.

Western powers and Israel accuse Iran of seeking to acquire nuclear weapons, a charge Tehran denies.

(FRANCE 24 with AFP)


Iranian government acknowledges protests, vows to fix economy, currency crisis

Iranian government acknowledges protests, vows to fix economy, currency crisis
Iranian government spokeswoman and translator on December 30. / SNN/IRNA
By bnm Tehran bureau December 30, 2025

Iran’s government spokeswoman said she recognised nationwide protests over living costs, in a bid to cool tensions which have been running high in recent hours due to the collapse in the country's currency and rampant inflation. 

As part of indirect efforts to calm the situation, authorities ordered a one-day shutdown of Tehran and other provinces, and the president moved to soften a contentious 2026 budget.

In unusually explicit remarks, government spokeswoman Fatemeh Mohajerani said the administration “sees and recognises” both protests and economic hardship, framing the demonstrations as livelihood-driven rather than political.

Iran's President Masoud Pezeshkian also signalled readiness to amend fiscal plans for the upcoming year to contain inflation and shore up social support, marking a change in tactic for the Islamic Republic, which has historically cracked down on street protests with deadly consequences. 

The change in tone aims to de-escalate tensions after protests by traders and shopkeepers over the collapsing rial spread across central Tehran on December 28, 29, coinciding with leadership turmoil at the Central Bank and mounting pressure over the draft 1405 (March 2026–March 2027) budget.

Speaking at a televised news conference in Tehran on December 30, Mohajerani said the Interior Ministry had been instructed to establish “dialogue mechanisms” with protesters and stressed the government viewed peaceful assembly as a right.

She added, “A 20-point programme [to change economic direction] covers four axes: improving livelihoods, controlling inflation, managing the market, and improving economic growth.

Even “sharp voices”, she said, would be heard with patience, a tacit acknowledgement of the anger visible on the streets. “If people are speaking out, it means the pressure on them is heavy.”

She noted inflation remained “high” and said the government did not defend the status quo. While the state spends “billions of dollars” on subsidies, she admitted much of the support fails to reach households effectively.

Tehran is now seeking parliamentary approval to shift subsidies from the start of supply chains to the consumer end, with a mix of food baskets and credits to be finalised this week. No figures were disclosed.

On inflation control, Mohajerani blamed chronic budget deficits and banking imbalances, pledging tighter spending discipline to year-end and more orderly allocations next year.

She also said curbing excessive bank borrowing from the Central Bank was a priority, signalling resistance to further bond issuance that could rattle capital markets.

Earlier in the day, authorities announced a wide shutdown of Tehran and other provinces on Wednesday, December 31, citing extreme cold and energy management.

All government offices, schools, universities, banks and commercial centres will close, except for emergency services, with university exams proceeding.

Officials urged residents to cut consumption to avoid power cuts and gas shortages.

Similar remote-working or virtual measures were rolled out in several other provinces as temperatures plunged below freezing, a move that some Iranians privately linked to security concerns following protests, though officials framed it strictly as an energy decision.

The political system also moved to close ranks. In a letter sent earlier on December 30, Pezeshkian told parliament speaker Mohammad Bagher Ghalibaf he agreed to five “livelihood and economic” amendments to the 1405 budget, including higher pay for public employees and pensioners, adjustments to income-tax thresholds favouring lower earners.

Japan turns sustainable finance ambition into delivery

Japan turns sustainable finance ambition into delivery
/ Markus Spiske - Unsplash
By bno - Tokyo Office December 31, 2025

Japan’s sustainable finance agenda moved from vision to execution in 2025, marking a year in which policy intent, market standards and capital mobilisation began to align at scale, Climate Bonds Initiative (CBI) writes. What had previously been framed as aspiration increasingly took on the characteristics of a functioning market, supported by clearer rules, stronger institutions and a growing pipeline of investable projects.

The country’s progress reflected a broader effort to position climate action not as a constraint but as a driver of competitiveness, energy security and industrial renewal. Across the year, government agencies, financial institutions and corporates worked more closely with international standard-setters and domestic partners to ensure that Japan’s green and transition finance frameworks were both credible and practical. The result was a period of consolidation, accompanied by targeted acceleration where policy and market readiness converged.

A central anchor for this shift was the Green Transformation strategy, which set out an ambition to mobilise more than JPY150 trillion ($958bn) in climate-related investment over the coming decade. The strategy placed sustainable finance at the heart of economic policy, linking decarbonisation with supply chain resilience and long-term growth. Engagement between policymakers and market participants intensified as the focus moved from headline targets to delivery mechanisms capable of supporting projects across energy, infrastructure and industry.

Institutional capacity was also strengthened during the year according to CBI. The appointment of senior figures with deep experience in global financial governance and sustainable finance signalled a determination to embed international best practice within Japan’s domestic market. This added weight to efforts to align national approaches with global standards while retaining flexibility to reflect Japan’s energy mix and industrial structure.

Partnership-building also emerged as a defining feature of 2025. Collaboration between international climate finance bodies and Japanese institutions deepened, with renewed agreements focused on capacity building, market development and knowledge sharing. These partnerships were not limited to Tokyo though.

Regional engagement gained momentum as local governments and financial institutions sought to position themselves as hubs for green and transition finance, linking national objectives with regional revitalisation.

Outward looking

Japan’s outward-facing role also expanded. New cooperation arrangements with development agencies reinforced the country’s ambition to project its transition finance expertise beyond its borders, particularly across Asia-Pacific markets where energy demand growth, climate vulnerability and infrastructure needs intersect. By linking domestic standards with international investment opportunities, Japan strengthened its claim to leadership in the region’s sustainable finance landscape.

The year’s most visible market milestone came through a transaction that illustrated how policy frameworks can translate into investable assets. Tokyo’s metropolitan government issued a resilience-labelled bond that set a global precedent by applying climate certification to adaptation-focused investments. Investor demand was strong, demonstrating appetite for clearly defined resilience assets at a time when climate risks are becoming more tangible for cities and infrastructure owners. The bond’s success underscored the role that credible criteria and transparent use-of-proceeds frameworks can play in unlocking new segments of the sustainable finance market.

Open to all

Beyond landmark transactions, considerable effort went into making sustainable finance guidance more accessible to domestic issuers and investors. Key materials were made available in Japanese, lowering barriers to adoption and supporting more consistent application of international standards. Updated policy briefings also examined Japan’s progress against a backdrop of geopolitical uncertainty and continued reliance on imported fossil fuels, highlighting the importance of grid investment, renewable energy deployment and methane abatement in strengthening energy security.

Regional frameworks also took shape. In northern Japan, a green finance framework designed to support regional revitalisation introduced clearer benchmarks for sustainable investment. By referencing both international climate criteria and established taxonomies, the framework aimed to provide investors with comparable, decision-useful information while channelling capital towards projects aligned with local economic priorities. Such initiatives reflected a growing recognition that the success of Japan’s transition will depend on mobilisation beyond major financial centres.

Wider engagement

Market engagement was another aspect that intensified throughout the year. A series of roundtables, seminars and workshops brought together policymakers, investors and financial institutions to address the practical challenges of transition finance. Discussions focused on issues ranging from geopolitical risk and energy security to bottlenecks in renewable deployment and emissions across liquefied natural gas value chains. Resilience investment and adaptation financing gained prominence, reflecting both physical climate risks and the need to protect economic assets.

These exchanges served to contribute to a more coherent market narrative. While large-scale solar, offshore wind and hydrogen remained central to Japan’s decarbonisation plans, 2025 saw a broader understanding emerge of the role that transition finance, resilience projects and grid infrastructure must play alongside pure green assets. Alignment between domestic frameworks and international standards was increasingly viewed as a competitive advantage rather than an external constraint.

The underlying market data further pointed to progress. Capital allocation to sustainable assets became more diversified, and issuers showed greater confidence in bringing labelled products to market. At the same time, challenges remained. Energy transition pathways continued to be shaped by global fuel markets, technology costs and political risk, underscoring the need for policy consistency and long-term signals to investors.

Taken together, the developments of 2025 suggested a market that is maturing. Japan’s sustainable finance ecosystem moved closer to a state where policy ambition, market infrastructure and investor demand reinforce one another. As such, this convergence strengthened the country’s position as a regional leader while supporting broader objectives around economic resilience and energy security.

Looking ahead to 2026, further progress is expected as Japan advances its ‘Green Transformation’ agenda and scales up investment in renewables, resilience and transition technologies. The experience of 2025 indicates that the foundations are now in place for sustained delivery. To this end, the challenge for the coming years will be to maintain momentum, manage execution risk and ensure that capital continues to flow at the speed and scale required to meet Japan’s climate and economic goals.

 World Nuclear News podcast 

In quotes: What to watch out for in 2026


What are the main priorities, the key events and the likely big developments in new nuclear capacity in 2026? Here’s an edited transcript of World Nuclear Association Director General Sama Bilbao y León's World Nuclear News podcast interview.
 

You can hear the full episode, including the review of 2025, below. The section looking ahead to 2026 begins from 36 minutes in.

What do you think are the main priorities for the year ahead?

I think that for everybody in the global nuclear industry, it is essential that we move from ambition to action, to see real projects deployed, many of them. We also need to see many final investment decisions, and see more countries moving forward with nuclear projects. Finance continues to be an important piece of the puzzle, and in more and more projects we see private investors understanding how they can contribute. We are seeing this in Poland, we saw this in the UK, and I think that we are going to see this in many other jurisdictions. We will continue to work on the supply chain. This year we will have our second World Nuclear Supply Chain Conference. We are really pleased that it is going to be held in Manila in the Philippines. The ASEAN region is moving forward with nuclear projects very, very quickly and most of the countries are growing their economies incredibly quickly, which of course translates into enormous energy demand. And many of them - Vietnam, Indonesia, Malaysia, Philippines, Singapore - they are really looking at nuclear as a key piece of the puzzle. We will be publishing in 2026 the World Nuclear Supply Chain Report which will provide a very important snapshot of where we are - what are the true capabilities of the industry to deliver all these projects, what are the needs for growth, what are the potential bottlenecks, what are the opportunities for investment? 

Significant moments in terms of new nuclear

There are quite a few projects moving very quickly. We are all pretty much waiting for the first unit at Rooppur in Bangladesh to start operating, and also the first unit at Akkuyu in Turkey. That will be good timing because COP31 is going to take place in Turkey later in the year so that would be a very good showcase opportunity. There should be first concrete at Paks II in Hungary early in the year. And then there are projects progressing in the Czech Republic, Poland, and lots of SMRs in the USA and Canada. In Canada, of course, they are already under construction with ground broken at the Darlington site. But we are also seeing demonstration projects in the US and elsewhere. So lots of exciting opportunities. Africa is a little bit uncharted territory for new nuclear energy but the El Dabaa project in Egypt is making progress very quickly and we are seeing a number of other countries, such as Rwanda, Ghana and South Africa, where we will likely see projects developing in the coming year.


Grid connection for Rooppur's first unit should happen during 2026 (Image: Rosatom)

China will also have a pipeline of projects

It almost feels like a given that there will be new projects and new units in China. They have an enormous pipeline of projects - they will continue to build reactors on time, on budget, and in doing so showcase enormous industrial capabilities. Also, we are looking closely at India’s plans. We are seeing the realignment of some of the laws in India, the Atomic Energy Act and also the liability laws, that are going to hopefully incentivise international cooperation, international participation in the Indian market, because India has incredible ambitions for 100 GW of new nuclear by 2047. India has great capabilities itself, but global contributions could also be fabulous for these ambitions. The changes also encourage more involvement from the Indian private sector, which could be really game-changing.

One of the big issues for the public is nuclear waste

That is true, but I think that in 2026 we are going to see the entering into operation of the geological repository in Onkalo, Finland. I think this will be a key opportunity to show the world that the questions about what to do with nuclear waste and used nuclear fuel are not a technology problem. It is actually most often a problem of policy, politics, and political will. So I think it is great that Finland is being proactive. I think that Sweden is a minute behind, and then France is also very close by. So I think it will be a key year for that part of the fuel cycle also.

April will see the 40th anniversary of the Chernobyl accident

It is always good to look back and make sure that we have really learned all the lessons and taken the opportunities for improvement from previous events. 2026 will also be the 15th anniversary of Fukushima. I think that the industry has been very good at reflecting on these events and extracting all the lessons to be learned. I think that the safety culture at a global level continues to be better than ever. I think that international collaboration has always been great in nuclear, but certainly the collaboration that ensued after Chernobyl, and certainly after Fukushima is a testament to how well the nuclear industry is collaborating. Those were important events. We cannot minimise them whatsoever, but they need to be put in context with the impacts of things like using fossil fuels on human health, on the environment and obviously on climate change. We really need to look at the entire life-cycle of all energy sources and to recognise that there is not one energy source that is a silver bullet for anything. I think that perhaps Fukushima's anniversary and Chernobyl's anniversary will be an opportunity for us as a society to become more pragmatic and realistic about the risks and opportunities of all these technologies.

What do you think are the key planned events for the year?

We hit the ground running at Davos at the World Economic Forum this year, from 19 January - this is perhaps the second time that nuclear energy is really going to be visible there, so we are excited about that opportunity. Immediately after Davos there is India Energy Week in Goa, which is the second-largest energy conference in the world. In March, we will be at CERAWeek in Texas, a very important event where we are bringing together nuclear energy with many of these large energy users, in particular the oil and gas industry, that are really aligning themselves to best understand how nuclear can contribute to their decarbonisation and energising efforts. And then, in April, we will have the World Nuclear Fuel Cycle Conference in Monaco. In May, we will be in Manila at the World Nuclear Supply Chain Conference, and World Nuclear University's Summer Institute will be in the summer in Lyon in France. And of course we will come back together in September here in London for the World Nuclear Symposium, which will be even bigger and better than the one that we did in 2025. We really wanted to bring the nuclear and finance communities together to answer each other's questions and demystify nuclear, so financiers recognise that nuclear projects are nothing more, nothing less, than large infrastructure projects. We are now working together with the finance community to put together a nuclear financing guide to pull together best practices and lessons learned to support financiers and nuclear developers going forward. Later in the year, there will be Africa Energy Week at the end of September in Cape Town, and Singapore International Energy Week is a great opportunity to bring together all those ASEAN countries. There will also be the World Energy Congress taking place in Saudi Arabia and also COP31 in Turkey. So if people thought that 2025 was crazy, I think it is clear that 2026 is looking like it will be just as busy.

So interesting times ahead...

Definitely. This is the time. We've been discussing how the stars are aligning for nuclear energy and I think that we are there. The stars are definitely aligned. This is the moment where we, the global nuclear industry, really need to be proactive and active and make the most of this opportunity. We really need to work together with our governments. We need to work together definitely with the nuclear regulators, with the finance community, with large energy users, and we cannot leave behind civil society. We have seen major improvements in public acceptance and interest in nuclear, but we need to continue to be proactive to engage with civil society, to make sure that no question is left unanswered.

 

The Growing Backlash Against Data Center Expansion

  • Communities in the United States and abroad are increasingly opposing data centre projects due to concerns over energy costs, water shortages, and environmental damage.

  • Activist pressure is reshaping local and national politics, delaying or blocking billions of dollars in planned data centre investments.

  • Without stronger regulation and infrastructure planning, rapid data centre expansion risks straining power grids and water systems, intensifying public backlash.

As tech companies worldwide invest heavily in the deployment of large-scale data centres to power advanced technologies, not everyone is so happy about the new phenomenon. Concerns over energy security and a prolonged reliance on fossil fuels are just two of the issues that are repeatedly coming up, as governments seek to better regulate the sector. 

In the United States, $64 billion in data centre projects have been blocked or delayed due to growing opposition. A Data Centre Watch report estimates that $18 billion worth of data centre projects were blocked, while $46 billion of projects were delayed over the last two years, due to opposition from residents and activist groups. The study showed that there were at least 142 activist groups across 24 states organising to block data centre construction and expansion.

Some of the main reasons individuals and groups cite for their opposition to data centre development include higher utility bills, water consumption, noise, impact on property value, and green space preservation. A recent survey shows that while the majority of United States residents support data centres in theory, many are sceptical about the development of these centres in their communities. This is true across both political parties. 

The opposition is driving political change. For example, in Warrenton, Virginia, residents voted out all town council members who showed support for Amazon’s proposed data centre in the November 2024 election. The newly elected council has since established a mandate to block the development of the data centre. 

In the state of Georgia, when the Democratic candidate Peter Hubbard was voted into office, he noticed that there was one new topic of focus for his constituents – data centres. “The number one issue was affordability,” said Hubbard. “But a very close second was data centres and the concern around them just sucking up the water, the electricity, the land—and not really paying any taxes.” Georgia has become one of the fastest-growing markets for data centre development in the United States, particularly popular because of its tax breaks. 

In December, a coalition of over 230 environmental groups demanded a national moratorium on the construction of new data centres in the United States. Many organisations blame the data centres for escalating electricity bills and worsening the climate crisis. The coalition includes representatives from Greenpeace, Friends of the Earth, Food & Water Watch, as well as dozens of local organisations. This follows billions of dollars of investment from tech majors, such as Meta, Google and OpenAI, into new data centres, which could change the future of U.S. energy demand if they are all constructed. 

“The rapid, largely unregulated rise of data centres to fuel the AI and crypto frenzy is disrupting communities across the country and threatening Americans’ economic, environmental, climate and water security,” states the letter from the coalition to members of Congress. The coalition calls for a pause on development until new regulations are established. 

In addition to the vast quantities of energy needed to power data centres, recent research showed that the facilities also required large amounts of water to cool down equipment. According to the International Energy Agency, in 2024, electricity consumption from data centres was estimated to contribute around 415 terawatt hours (TWh), or about 1.5 percent of global electricity consumption, having grown at 12 percent a year over the previous five years.

In Latin America, Chile and Brazil are currently the two top countries for data centre development. The high levels of investment earmarked for the centres have attracted political support, although many residents are less enthusiastic about the developments. The lack of national regulation and environmental impact assessments for data centre construction means that many are established with little consideration for their impact on the environment and communities, which has spurred public protests. 

In 2024, Microsoft opened a huge data centre in central Mexico. Following the launch, residents in the area complained of more frequent power cuts and water outages for days or weeks at a time. Microsoft responded to the complaints by saying that the region was already prone to unstable electricity supplies and that it used minimal water and had an electricity load of up to 12.6 MW, the equivalent of powering around 50,000 homes if used throughout the year. 

While no definite link has been made between the new data centre and the power outages, it is clearly risky to develop these types of projects in regions with unstable grids and existing water strains. It could put added strain on the system and tip it to the breaking point if left unchecked. These types of projects are emerging in several countries around the globe and will likely have a knock-on effect on the surrounding areas if not properly managed by energy companies and governments, spurring greater backlash in the coming years.  

By Felicity Bradstock for Oilprice.com


Japan's SoftBank bets $4bn on data centre backbone for AI push

Japan's SoftBank bets $4bn on data centre backbone for AI push
/ Claudio Poggio - Unsplash
By bno - Tokyo Office December 31, 2025

SoftBank Group has agreed to buy the US-based data centre investor DigitalBridge in a deal valued at about $4bn, underlining Masayoshi Son’s determination to deepen the Japanese group’s exposure to the infrastructure underpinning artificial intelligence.

According to Kyodo News, under the terms of the transaction, SoftBank will acquire all outstanding shares in DigitalBridge for $16 apiece through an indirect purchase structure. The deal is expected to complete in the second half of 2026, subject to regulatory approvals and customary closing conditions.

DigitalBridge specialises in investing in digital infrastructure, including data centres, mobile towers and fibre networks, assets that have become increasingly strategic as demand for computing power accelerates. SoftBank said the acquisition would enhance its ability to develop and finance large-scale facilities required to support new generations of AI services.

The move fits squarely with Son’s long-held vision of building an ecosystem around artificial intelligence, an area that has become the central focus of SoftBank’s investment strategy in recent years after a period of portfolio retrenchment. By securing control of a platform with deep expertise in digital infrastructure, the group aims to position itself closer to the physical backbone of the AI economy.

SoftBank said the transaction would provide a stronger foundation for next-generation data centres, as competition intensifies globally to secure capacity and energy-efficient facilities capable of supporting advanced AI models.


The Renewable Energy That Trump Has Not Targeted

BECAUSE IT'S FRACKING BY ANY OTHER NAME

  • Geothermal power has avoided political pushback and is receiving federal support under the Trump administration.

  • Enhanced geothermal systems and fast-track permitting are accelerating project development nationwide.

  • Cities, universities, and utilities are adopting geothermal networks to decarbonise heating and provide reliable clean energy.

Geothermal is one of the few renewable energy sectors that President Donald Trump has not tried to quash in favour of fossil fuels in the United States. There is significant promise for the future of geothermal power in the United States, even though most projects are still in the nascent stage of development. Both public and private funding are expected to bolster the sector in the coming years. 

According to the European Commission, geothermal energy is a renewable energy source harnessed from the thermal energy stored in rocks and fluids deep within the Earth’s crust. Drilled wells connect the fluid to the earth’s surface, allowing it to be used for a range of purposes such as to generate electricity or provide direct heat for district heating, water heating or industrial processes. 

Countries with easily accessible geothermal reserves have been harvesting power from these sources for centuries. Meanwhile, countries with harder-to-reach reserves can now use enhanced geothermal systems (EGS) to access vast, clean power sources. EGS is based on technology used in fracking operations, which emerged over the last century. Unlike solar and wind that depend on the weather, geothermal power can run at all hours of the day, making it a highly attractive renewable energy source.

In May, the U.S. Department of the Interior announced plans to implement emergency permitting procedures to accelerate assessments of geothermal energy projects across the country, in line with President Trump’s energy agenda. Projects selected for fast-tracking included three in Nevada, operated by Ormat, which received funding during President Trump’s first term in office in 2020. The move is expected to reduce approval times from months or even years to a maximum of just 28 days for energy or mining projects on federal lands that are deemed urgent.

“Geothermal energy is a reliable energy source that can power critical infrastructure for national security and help advance energy independence,” Interior Secretary Doug Burgum said at the time. “We’re fast-tracking reliable energy projects while strengthening national security and supporting American workers.”

In December, U.S. geothermal energy leader Fervo Energy announced it had raised $462 million in its Series E funding round to accelerate growth and support the ongoing construction of Cape Station and early development of several other projects. Cape Station in Utah is expected to deliver 100 MW of geothermal power to the grid starting in 2026, before expanding to 500 MW by 2028. 

“Fervo is setting the pace for the next era of clean, affordable, and reliable power in the U.S.,” said Jeff Johnson, General Partner at B Capital. “With surging demand from AI and electrification, the grid urgently needs scalable, always-on solutions, and we believe enhanced geothermal energy is uniquely positioned to deliver.”

In New Haven, Connecticut, works have commenced on a geothermal energy network that will offer clean heating and cooling to the city’s Union Station and a new public housing development. It is the start of a project aimed at decarbonising all municipal buildings and transportation by the end of 2030.

“At the end of the day, you’re going to have the most efficient heating and cooling system available for our historic train station as well as roughly 1,000 units of housing,” said New Haven’s executive director of climate and sustainability, Steven Winter. ?“Anything we can help do to improve health outcomes and reduce climate change–causing emissions is really valuable.”

Nearby, at Yale University, development has started on a geothermal loop serving several science buildings. An energy bill that passed earlier this year and established a grant and loan programme is expected to spur the development of more thermal energy networks in the state. 

However, it was in Framingham, Massachusetts, where the first utility-owned geothermal network in the United States came online in June 2024. In December, the Boston-based non-profit, the Home Energy Efficiency Team (HEET), announced that it had been awarded an $8.6 million grant by the U.S. Department of Energy’s Geothermal Technologies Office. The funding will contribute to the expansion of an existing networked geothermal system. HEET’s existing project provides clean heating and cooling to around 140 residential and commercial customers. 

“This award is an opportunity and a responsibility to clearly demonstrate and quantify the growth potential of geothermal network technology,” said HEET’s Executive Director Zeyneb Magavi, “Which we will do, together with our partners and colleagues on the project team and at GTO. This project also represents the continuation of a collaboration that began when HEET first pitched our idea of geothermal networks to gas utilities in 2017.”

There are high hopes for the United States geothermal energy industry, particularly as it is continuing to garner federal support under the Trump administration. The expansion of geothermal power projects across the country are expected to support decarbonisation aims and help reduce reliance on fossil fuels in the coming years.

By Felicity Bradstock for Oilprice.com

South Korea Quitting Coal Will Hurt US LNG and Australian Coal Exports

  • South Korea plans to phase out coal power by 2040, cutting emissions sharply and closing 40 plants already scheduled.

  • The move threatens major coal exporters Australia and the U.S.

  • Critics warn the risk is swapping coal for gas, while supporters argue renewables are now cheaper, improve energy security, and signal a long-term structural decline in global coal demand.

South Korea’s move to kill coal will almost certainly have repercussions on two of its largest energy customers, Australia and the United States.

A decision on the polluting fossil fuel was made at the COP30 climate conference in Brazil, when South Korea’s Ministry of Climate, Energy and Environment announced plans to retire most of the country’s coal-fired power plants by 2040, and to at least halve its carbon emissions by 2035. Forty of the plants already have confirmed closure dates.

South Korea has been criticized for not acting faster to address the climate, according to the Guardian.

A new policy direction came with the election of a more liberal president in June, Lee Jae Myung, who campaigned for stronger climate commitments than his conservative predecessor, Yoon Suk Yeol.

The country is a major importer of coal and natural gas and lags its counterparts in the adoption of renewable energies.

The Guardian notes South Korea has the world’s seventh-largest coal power fleet and is the fourth-largest thermal coal importer behind China, India and Japan. Coal provides about 30% of its electricity.

Related: Where are The World's Rare Earth Minerals Located?

It is also a significant importer of metallurgical coal, used in steelmaking, and has substantial nuclear and gas-power fleets, each supplying roughly one-third of its electricity.

By contrast, renewable energy generated just 10.5% of South Korea’s domestic power last year. Japan, whose economy is more than twice the size of South Korea, uses double the amount of renewable energy.

There are plans to boost offshore wind power capacity to 4 gigawatts, around 10 times the current level.

Climate activists are rejoicing South Korea’s move away from fossil fuels, but the policy places the country in a quandary with the United States.

That’s because, as part of a trade deal with the Trump administration that would see it avoid higher tariffs, South Korea agreed to raise imports of US liquefied natural gas.

The Associated Press reports Talks are underway for South Korea to invest $350 billion in U.S. projects and purchase up to $100 billion worth of U.S. energy products, including LNG, a natural gas cooled to liquid form for easy storage and travel. It burns cleaner than coal, but still causes planet-warming emissions, especially of methane.

It’s important to note that the agreement with the US is still under negotiation. AP says depending on the deal’s duration, the country may import between 3 and 9 million tons of US LNG a year.

The quandary is that South Korea is making deals with the United States to import more LNG at the same time as setting a target to cut its LNG import percentage from almost a fifth last year to 10.6% by 2038.

Insung Lee with Greenpeace in Seoul is skeptical:

“If we just replace coal plants with LNG, that means the coal exit actually doesn’t lead to a green transition and merely shifts Korea’s addiction from coal to gas, which undermines the whole spirit of climate action," AP quoted Lee saying.

The decision to close coal plants, meanwhile, is sounding the alarm in Australia, the world’s second-largest coal exporter behind Indonesia, and the planet’s biggest exporter of met coal by far.

Australia expects to export $1.5 billion worth of thermal coal to South Korea in 2025, and is hoping for the same figure in 2026, according to analytics firm Kepler.

South Korea currently relies on coal for 30% of its energy needs, but within 14 years it could be zero.

At COP30, South Korea announced it would join the Powering Past Coal Alliance, a group of around 60 countries and 120 sub-national governments, businesses and organizations that are phasing out the use of fossil fuels. China hasn’t officially joined, but it plans on doing so.

But is there another explanation for South Korea’s plan to quit coal? Sources say it comes down to economics.

In most current scenarios, coal is significantly more expensive to run than building new renewable energy sources like wind and solar.

Studies show 99% of US coal plants are more costly to operate than replacing them with new clean energy, a trend accelerated by factors like the Inflation Reduction Act. Renewables, even with storage, offer lower Levelized Costs of Energy (LCOE) compared to coal, making coal economically uncompetitive for power generation. (AI Overview)

Kim Sung-hwan, South Korea's Minister of Climate, Energy and Environment, said shifting from coal to renewables will increase the country’s energy security, by not relying as much on foreign imports; and it will boost the competitiveness of South Korean businesses. 

How so? By making energy cheaper. In response, James Bowen, the director of consultancy ReMap Research, said that Australian coal exports could fall in value by 50% over the next five years.

“South Korea’s decision should prompt Australia to show leadership by discussing timeframes for its own fossil fuel phaseout while helping its regional neighbours to embrace clean energy,” he said via the Guardian.

Video blogger Sam Evans, aka ‘The Electric Viking’, notes that Australia too is reducing domestic coal usage. He said the government recently introduced ambitious domestic green energy plans, with the aim of increasing the proportion of electricity from renewable energy from 42% over the past year to 82% by the end of the decade.

“South Korea’s ambitious goal… shows that demand for coal is going to continue falling. We know that we're hearing the same thing from China, that many coal power plants will be shut down over the next five to 10 years.

“It's going to be a tsunami for coal. There's going to be coal companies going bankrupt all over the world. So, if you want to short anything, this is what you should be shorting,” he concluded.

By Andrew Topf for Oilprice.com