Russia and Iran Lead Increase in Gas Flaring, and Along with Iraq Make Up Half of Global Flaring, According to Improved World Bank Global Gas Flaring Tracker

     The World Bank just released its annual global gas flaring tracker report. In 2025, global flare volumes rose to 167 BCM, or about 5.9 TCF. This was a 6% increase over the previous year. Flared gas in 2025 was worth an estimated US$54 billion. 

     The report’s forward notes that estimates have been improved with a new methodology and better satellite coverage:

“This year's Global Gas Flaring Tracker introduces a significantly improved methodology for estimating flare volumes, developed in partnership with the Colorado School of Mines, which now draws on three satellites rather than one, more than doubling nightly observation coverage, improving flare locations and the accuracy of flare estimates at both ends of the operational flare volume spectrum.”

     The box below explains the new methodology in more detail, and while the new results kept the same trend globally, countries with big flares like Iran and Iraq were revised upward, and countries with smaller flares like the U.S. and Canada were revised downward.

     The report notes a continuing steady increase in global flaring since it reached a minimum in 2022. Russia has increased flaring by 9% compared to the previous year. Russia by itself makes up 18% of global flaring. The amount of gas flared globally is roughly equivalent to the gas consumption of Africa!

“Nine countries together account for 83 percent of global flare volumes while producing only 46 percent of the world's oil. This concentration means that targeted action by a small number of governments and operators could yield disproportionate and significant results.”

     Those nine countries are Russia, Iran, Iraq, Venezuela, Mexico, Libya, Algeria, Nigeria, and the U.S. 

     I know that Iraq has plans in place to utilize flared gas from Iraqi oilfields to power local natural gas plants. Nigeria also noted its commitment to end flaring remains firm despite a small increase this year associated with higher natural gas output.

"Nigeria’s commitment to end routine flaring by 2030 remains firm," said Eniola Akinkuotu, spokesperson of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which he said has "a scheme to monetise gas flares."

     Below are some more positive flaring news highlights:

“The United States achieved the largest absolute reduction in flare volumes of any country in 2025 — 0.4 bcm, or 7 percent — while also reducing its flaring intensity, the amount of gas flared per barrel of oil produced, by 10 percent. Kazakhstan continued its multi-year downward trajectory, registering a 16 percent decline through consistent and sustained application of regulatory standards. Also, countries and companies committed to the Zero Routine Flaring by 2030 (ZRF) initiative continue to outperform those that have not.”

     Zubin Bamji, Manager for the World Bank’s Global Flaring and Methane Reduction Partnership (GFMR) commented on the report:

"The technologies and approaches needed to capture and utilize associated gas are well established. But in many oil-producing countries, gas utilization is not yet integrated as a core part of oil production planning, with infrastructure investment and regulatory enforcement often lagging."

Some possibilities for developing and utilizing the so-called stranded gas that is commonly flared are given below, as well as policy and financing options. 

     Russia, Iran, and Iraq combined flared about 84 BCM in 2025, nearly half the global total, with Russia and Iran accounting for much of the year-over-year increase, according to the data. I will say that this is another case where the two countries, Russia and Iran, represent the worst ranking and noncompliance with international norms and expectations.

     Below are more graphs of global data from the report.

    

 

 Some U.S. data is given below by the producing basin. I found it interesting that in the key findings, it was noted that the big drop in flaring in the Permian Basin in 2025 was associated with the turning on of the Matterhorn Pipeline in the Permian Basin.

References:

 

Global Gas Flaring Tracker Report: June 2026. World Bank. Global-Gas-FlaringTracker-June-23-2026.pdf

Russia, Iran lead surge in gas flaring, dimming global hopes to end the practice. Isaac Anyaogu. Reuters. June 23, 2026. Russia, Iran lead surge in gas flaring, dimming global hopes to end the practice

Biggest Single Driver of Global Sea Level Rise is Thermal Expansion of Warming Seawater, Not Melting Ice Sheets or Glaciers, New Paper Confirms

       A new paper published in the journal Science Advances confirms that the biggest driver of global sea level rise is the thermal expansion of seawater. The international researchers analyzed data from tide gauge measurements, satellite records, and ocean-monitoring buoys. While we know that melting glaciers and melting sea ice increase global sea level, the biggest single source, responsible for 43% of global sea level rise, is thermal expansion of the warmer water. Thermal expansion occurs as ocean water heats up, expands, and occupies more space. The researchers found that mountain glacier loss contributed 27% of the rise, while the Greenland Ice Sheet accounted for 15% and the Antarctic Ice Sheet for 12%. Changes in land water storage made up an additional 3%. Thus, the paper shows that only just over a quarter of global sea level rise is caused by ice loss from the Arctic and Antarctic ice sheets. Mountain glaciers contributed as much as both. Of course, ice loss from all three of those sources accounted for 54%, so one could say that total ice loss (from mountain glaciers and the two ice sheets combined) contributes more to sea level rise than thermal expansion. I made a graph below to depict the percentages found in the paper.

     The researchers used a statistical technique known as balancing the global mean sea level (GMSL) budget. Mechanical engineer John Abraham, from the University of St. Thomas in the U.S., noted:

"This work shows that, with better instruments, processes, and smarter analysis, this knowledge gap can be closed. We can [now] explain sea level rise with greater confidence."

     Since 1960, the data shows, global mean sea levels have risen by an average rate of 2.06 millimeters (0.08 inches) per year. However, as Science Alert notes:

“Between 2005 and 2023, they went up by 3.94 millimeters (0.16 inches) per year – about twice the average rate.”

     The researchers noted that using better datasets, such as higher-resolution satellite imagery, has improved estimates of the extent of glacier melt worldwide.

 "The up-to-date community estimates reconcile differences among multiple estimate methods, mitigate the random errors induced by a single source, and reduce the differences from the dataset choice."

     Sea level rise threatens coastal areas with flooding, storm surges, and king tides. The researchers note that even if we could stop carbon emissions now, sea level would continue to rise for another 50 years, resulting in an additional 103 mm of sea level rise, or a little over 4 inches. With continued emissions guaranteed, it will be much more than that.  

     The researchers noted that their analysis does indicate that sea level rise has indeed accelerated, especially since 1993, as the abstract below points out.

 

References:

 

Scientists pinpoint biggest driver of sea level rise, and it's not melting ice sheets or glaciers. Curtis Deacon. The Cool Down. June 15, 2026. Scientists pinpoint biggest driver of sea level rise, and it's not melting ice sheets or glaciers

Sea Level Rise Is Accelerating, And We Now Know The Biggest Reason Why. Science Alert. David Nield. June 9, 2026. Sea Level Rise Is Accelerating, And We Now Know The Biggest Reason Why : ScienceAlert

Improved closure of the global mean sea level budget from observational advances since 1960. Huayi Zheng, Lijing Cheng, Sönke Dangendorf, Benoit Meyssignac, Anne Barnoud, Kevin E. Trenberth, John T. Fasullo, and John Abraham. Science Advances. 20 May 2026. Vol 12, Issue 21. Improved closure of the global mean sea level budget from observational advances since 1960 | Science Advances

Global Superbasins: Geoscience Resources and Future Opportunities: AAPG Academy Webinar Summary & Review, June 25, 2026

     AAPG provided a nice summary of the webinar:

“This AAPG Academy webinar marked the 10-year anniversary of the superbasins concept, featuring presentations by Bob Frickland of S&P Global and Charles Sternberg, both pioneers in petroleum geology. Bob outlined the geological criteria for designating superbasins, which require 5 billion barrels equivalent of discovered volumes plus an additional 5 billion barrels of potential, along with specific geological characteristics including multiple petroleum systems, marine settings, and significant thickness of Mesozoic strata. Charles discussed the AAPG Superbasin Initiative he led as president in 2018, which produced four special issues of the AAPG Bulletin covering 20 global basins and organized 20+ themed events with over 5,000 attendees. The presentations covered how exploration has shifted from frontier basins to mature and emerging basins over the past decade, with notable discoveries in Guyana-Suriname and potential new superbasins emerging in the Black Sea. The webinar concluded with a discussion of how large language models and AI are accelerating basin analysis, and questions from attendees about EOR in unconventionals, the role of smaller players in international exploration, and the potential for superbasin discoveries in India.”

     The discussion was great, and the slides contain some vital information about superbasins. As noted, it has been about ten years since superbasins were basically defined and began to be a focus for petroleum explorationists. Below are Bob Frykland’s slides on the geological characteristics of superbasins.

     Bob went on to describe what has been discovered in new and existing superbasins over the past 5 years and 10 years. He stated that a superbasin requires recoverable hydrocarbon reserves of 100 million barrels of oil equivalent per kilometer. He notes that in the past ten years, only one superbasin has been discovered, the Guyana-Suriname Basin, which is offshore these two countries. There are, however, several possible emerging superbasins. One in particular is the Black Sea Basin, which is heavily weighted towards natural gas.

     He also notes that some mature superbasins may still have significant hydrocarbons remaining.  Large language models are speeding up our ability to explore superbasins. He also makes mention of the large accumulations of unconventional resources, such as those of the Permian Basin in West Texas, the Appalachian Marcellus gas basin, and the Neuquén Basin in Argentina, which hosts the Vaca Muerta shale. He notes some emerging unconventional shale basins in Saudi Arabia and the UAE.

     Charles Sternbach first provided the Exploration Pyramid, showing the path from concept to drill-ready locations. He notes that in the USGS’s Petroleum Provinces of the 21^st Century from 2008, there was no mention of the Permian Basin or the Appalachian Basin. He notes that 4 issues of the AAPG Bulletin from 2020 to 2022 covered 20 superbasins.

     Below, he introduces his Superbasin thinking toolkit. He notes that technology includes better seismic, better geochemistry, and a better understanding of basin architecture. 

     He mentions that geochemistry can provide hints of petroleum systems yet unexplored or underexplored. He notes that source rocks and reservoirs are a continuum, and the importance of carrier beds for hydrocarbon migration. Below, he shows a slide depicting possible underexplored basins where additional source rocks and subsequent petroleum systems may be found. 

     He also mentions that later tilts of migrated plays can concentrate hydrocarbons into traps, as happened in the Permian Basin. He notes that, especially in deepwater fields, the power density is very important. He emphasizes clinoform motifs and their historical importance in West Siberia and Alaska’s Cretaceous petroleum system. He points out that structural traps are typically tapped first, with stratigraphic and combination traps usually coming later. He says we should look specifically for stratigraphic and combination traps, as is happening in global shale exploration. Analog plays are important, he notes.  He also considers that there are possibilities of deeper source rocks and additional petroleum systems in existing basins.

     AAPG editor Rasoul Sorkhabi provided context on ‘What’s Next for Global Superbasins, ’ noting the classifications of giant fields, supergiant fields, and superbasins. The map below shows the distribution of the 62 superbasins, so far identified.

     Superbasins are the habitats of giant fields, he says. 60% are onshore – more since that’s where exploration began. He notes that there are currently 62 superbasins globally and that 45 of them produce 90% of the world’s oil & gas.

     Below, he shows conjugate margins of both sides of the Atlantic Basin and the possibility of new superbasins emerging.

     Below, he shows an example of machine learning applied to superbasins. He also mentions co-production strategies of other basin products, such as brine that can be mined for critical minerals. He notes that emerging superbasins are mainly in deepwater provinces.

     The Q&A explored overpressure retention in the Permian,  provided by the Tertiary overburden. There was discussion of the dozen or so sparsely explored basins in India, indicating that a superbasin could emerge on the east or west side. There was a question about EOR and refracs in the Eagle Ford and Bakken being a possible part of the next production peak. Another touched on the role of independents as risk takers. It was noted that 50% of independents are now gone in the U.S., but that private equity-backed companies are returning.

 

Climate Disclosure Platform CDP Sells Majority Stake to Private Equity as Fewer Companies Disclose and Mandatory Disclosure Requirements Lead to Less Company Interest in the Platform

    Nonprofit disclosure platform CDP will move to the private sector, and private equity firm Permira will assume majority ownership. In addition to the sale, a new nonprofit will be created, CDP Foundation, that will continue to develop new disclosure methods. Fewer companies are disclosing now, and the company has had to lay off employees. Private equity companies are known for maximizing short-term profit, while sustainability-based groups do not usually prioritize profit.

     Jim Giles at Trellis explains:

“It has not been an easy few years for CDP. Technical glitches impacted the disclosure cycles for data from 2023 and, to a lesser extent, 2024. Renewal rates suffered and an expected increase in commercial revenue was delayed, CDP said in its 2025 report. The proliferation of mandatory disclosure requirements has also prompted some companies to reconsider the need to report to CDP, contributing to a fall in disclosures in 2025 — the first in the organization’s history.”

     CDP CEO Sherry Madera explains how CDP is trying to improve the disclosure process and make it more efficient. There have been complaints in the past about access fees, but she did not address those.

“CDP already follows a “write once, use many” approach designed to ensure that a single submission to the platform can be used by multiple stakeholders, including supply chain partners and investors. One immediate focus, said Madera, is improving the “write” part of the process so companies can upload documents they have already produced, such as annual sustainability reports and regulatory filings, then let the system automatically extract the relevant data.”

 

Climate Disclosure Platforms and What They Do

     I searched ‘climate disclosure platform’ on Microsoft CoPilot and got the following results:

“Climate disclosure platforms help organizations, governments, and cities measure, report, and manage climate-related data to drive sustainability, regulatory compliance, and actionable environmental insights.”

     CDP, which stands for Carbon Disclosure Platform, is now a global company, formerly a global nonprofit.

“Climate disclosure platforms are essential tools for organizations and governments to measure, report, and act on climate-related data. Whether through nonprofit systems like CDP and TCR, open data utilities, or AI-driven commercial platforms, these solutions enable transparency, regulatory compliance, and actionable insights to support sustainability and climate resilience efforts globally.”

  

 

 

References:

 

CDP sells majority stake to private equity firm. Jim Giles. Trellis. June 17, 2026. CDP sells majority stake to private equity firm | Trellis

Australia is Offering Three Hours of Free Electricity Per Day to Consumers from Solar That Would Otherwise Be Curtailed

     Beginning in July 2026, Australia is offering free electricity to power consumers in three regions, New South Wales, South-East Queensland, and South Australia, for about three hours per day, mainly from 11AM to 2PM, when solar generation is high and at risk of being curtailed. There are plans to expand the offer throughout Australia in 2027. The goal is for consumers to shift their high power use to those hours, saving money in the process. The program is known as the Solar Sharer Offer (SSO). As the graphs below show, solar generation spot prices often go negative in the middle of the day when generation exceeds demand. The power not being used is simply lost. With the SSO, some of that power can be consumed instead of simply being lost. It can also decrease demand at other times during the day after being shifted to the free hours window. The graph below shows how solar overgeneration has increased as a result of Australia's rooftop solar boom.

     EV owners and those with electric resistive hot water systems can simply use timers to shift powering them to the free energy window. Solar Sharer is a part of the government’s broader Default Market Offer reforms process, which seeks to shield consumers from electricity price spikes during high-demand hours. The SSO is designed to decrease those spikes by shifting demand towards the free hours. Those with home battery energy storage systems can especially benefit from SSO by charging for free. That makes SSO a significant incentive for installing a home battery.

     The free electricity is available to those with or without rooftop solar panels. There is a limit known as reasonable use that caps how much energy can be used in the free window. The program was designed with the help of public feedback, but electricity retailers were not happy about not being consulted initially, although they can add feedback now. Of concern are tariff design, impacts on consumers, how the SSO will work with other reforms, consumer risks, and opportunities and risks associated with implementation.

     The Environmental Defense Fund (EDF) is advocating for a similar program in the U.S. Regions with high solar penetration, such as California, which may be ripe for it. They estimate that consumers could save hundreds of dollars per year. Ted Kelly of EDF notes:

“Australia found a way through smart policy and streamlined permitting, interconnection rules, and inspections to bring a spectacular amount of solar power online and start offering free electricity to many residential customers who don’t have panels on their homes,” says Kelly. “With the right policies at the local, state and federal level, there’s no reason we can’t do that here.”

      

 

References:

 

Free electricity? Australia’s got it, thanks to solar. Could the US be next? Liz Galst. Environmental Defense Fund. June 11, 2026. Free electricity? Australia’s got it, thanks to solar. Could the US be next?

Solar Sharer Offer to cut electricity bills. Government of Australia. 23 January 2026. Solar Sharer Offer to cut electricity bills | energy.gov.au

Free Electricity For All? Not Quite: Solar Sharer Explained. Michael Bloch. Solarquotes.com. November 5, 2025. Free Electricity For All? Not Quite: Solar Sharer Explained

 

Net Worth of Elon Musk vs. Median Global Net Worth and U.S. Net Worth: An Exercise in the Absurdity of it All

    I was curious, so I made some comparisons. The median global net worth is just $8654. The median net worth in the U.S. is much higher at about $124,000. Comparing that Elon Musk’s estimated net worth of $1 trillion yields a graph where his wealth is so high that the graph has difficulty showing the medians of global and U.S. net worth. Comparing Elon’s net worth to the global mean shows that he has 115,553,501 times the wealth of the global median. Is his work worth that of 115.5 million other people? We know it’s not. His two big companies do not even show a profit and are obviously overvalued. Perhaps we should be relieved that his net worth is only 8,064,516 times that of the median U.S. net worth. Incidentally, the median U.S. net worth is 14 times the global median net worth. Just to highlight the absurdity of it all, the second graph below shows one-tenth of Elon’s net worth compared to the other medians, which makes the U.S. median net worth first show up on the graph. Buddy, can you spare a dime? I mean, you are worth 10 trillion dimes, many more than exist in the world. 

 

JCB’s Hydrogen ICE Engine, Approved for Sale Across Europe in Late 2025, Has Benefits Over Diesel and Battery-Electric: It Could Enable Decarbonized Construction and Agriculture: Is It Commercially Viable as They Say?

   

      JCB, a UK-based company that manufactures construction equipment, gained approval for its hydrogen combustion engine for sale and use across Europe in late 2025. According to Engineerine:

“JCB’s hydrogen combustion engine has received certification from 11 European licensing authorities, including those in major economies like Germany, France, and the UK. This approval means the technology meets stringent safety and performance standards, allowing it to be commercially deployed across the continent. The significance of this certification cannot be understated, as it opens doors for widespread adoption in construction and agricultural applications.

     JCB was known for its diesel ICE engines and now offers comparable hydrogen ICE engines. The company hired 150 engineers, invested over £100 million, and spent three years innovating.

“The investment wasn’t limited to engine design—JCB also developed new high-pressure storage tanks, fuel delivery systems, and safety protocols to make hydrogen-powered machinery both practical and durable for global use. The company even partnered with hydrogen suppliers to establish prototype fueling stations, proving the technology can integrate seamlessly into real-world logistics chains.”

     For construction vehicles, hydrogen ICE engines have advantages over hydrogen fuel cells since they can utilize existing infrastructure.

“Fuel-cell systems, while efficient, often require ultra-pure hydrogen and complex cooling systems. In contrast, JCB’s combustion-based design can operate under rugged site conditions, tolerate impurities better, and produce consistent torque—qualities critical for excavators, loaders, and tractors.”

     Testing is ongoing for these hydrogen ICE engines in backhoe loaders, telescopic handlers, and generator sets. By November 2025, over 130 prototype JCB engines were being tested.

“According to JCB engineers, these test machines have successfully logged thousands of operating hours, demonstrating cold-start reliability, power parity with diesel, and stable combustion even under high load conditions. The results suggest hydrogen combustion could become a long-term, scalable alternative—not just a temporary experiment.”

     JCB is also working on hybrid systems that pair hydrogen combustion with small electric drives, combining instant refueling with regenerative braking efficiency.

     JCB’s hydrogen ICE engines are now installed in backhoes, in a 7.5-tonne Mercedes truck, and in delivery vans. Below are some of the company’s generator sets.

     JCB plans an attempt to break the land speed record in August with a hydrogen ICE. Former Royal Air Force (RAF) fighter pilot, Andy Green, who holds the current land speed world record of 763.035 mph (1,227.985 kph), is chasing a somewhat slower hydrogen first in what he calls the "coolest zero-carbon racecar ever created."

“When fully unleashed in August in Bonneville, Utah, the 32-foot (9.7-metre) long JCB Hydromax will try to beat the diesel record of 350.092 mph set 20 years ago on the same salt flats by the British engineering giant's JCB Dieselmax predecessor, also driven by Green.”

     The runway at Bonneville extends between nine and 10 miles, a distance that has shrunk from 11 miles in 2006 due to salt mining and environmental conditions.

     JCB plans to open a new $500 million factory in San Antonio, Texas, that will employ 1,500 people to make these machines for the U.S. market.

     Some of the advantages of hydrogen ICE over fuel cells, battery-electric, and diesel ICE are given below.

     Is it commercially viable? Well, that depends on what one wants to accomplish, I am guessing. I did not find any information on the hydrogen IC engine cost vs. a comparable diesel IC engine, only that they are cheaper than fuel cells. These engines are a specialty novelty engine, and their production has yet to scale up, so current prices are likely quite high. In terms of fuel costs, hydrogen loses since on a per-mile basis, hydrogen costs 2-4 times what diesel costs. If one wants fully decarbonized green hydrogen, the costs are closer to 4 times diesel. Thus, I would argue that hydrogen is not really commercially viable compared to diesel and will likely remain a niche technology adopted for its low-carbon benefits.

 

References:

 

JCB’s Hydrogen Engine: Pioneering the Future of Sustainable Construction. Max Carter. Engineerine. Last Updated on November 6, 2025. JCB’s Hydrogen Engine: Pioneering the Future of Sustainable Construction – Engineerine

Hydrogen. Welcome to the New Normal. JCB. (website). Hydrogen power is here | JCB

JCB chase hydrogen land speed record with digger engines and world's fastest man. Alan Baldwin. Reuters. June 19, 2026. JCB chase hydrogen land speed record with digger engines and world's fastest man

Will Hydrogen Engines Replace Diesel? An Analysis of JCB, Deutz & Cummins Technologies. By Daniel. Serwis Kop. October 10, 2025. Will Hydrogen Engines Replace Diesel? An Analysis of JCB, Deutz & Cummins Tech

 

State Subsidization and its Effects on Global Capitalism: OECD Report Shows That Post-COVID Subsidization Increases Have Remained, China is the King of Subsidization, and Solar and Semiconductors are the Most Subsidized Industries

      State subsidization is common around the world in capitalist countries as well as those considered to be more socialist, like China. It is one reason why our economy is really a mixed economy and not a fully free market capitalist one. Some subsidization is considered necessary to keep countries productive and profitable, as well as competitive with heavily subsidized countries like China. It is not necessarily a bad thing or a good thing, but it can and does distort markets. We subsidize renewable energy to decrease overall carbon emissions and pollution. Nationalized companies are common. That is a form of what is called state capitalism.

     State subsidization increased in many countries during the COVID pandemic and subsequent geopolitical events that have affected supply chains. In the U.S., we have increased subsidization for critical minerals and semiconductors. We want to reduce our dependence on foreign suppliers, especially China, which controls critical minerals mining, processing, and manufacturing. Subsidization also acts to protect domestic manufacturers from foreign competition.

     Alex Kimani, in an article for OilPrice.com, notes some info from a new OECD report on subsidization:

“A landmark report by the Organisation for Economic Co-operation and Development (OECD) has revealed that global state subsidies have surged to a total of $108 billion, good for an average of 1.3% of company revenues across 15 key industrial sectors and the highest level since the 2008-2009 financial crisis.”

     He notes that China is the king of state subsidization and thus also of market distortion:

“According to the OECD, Chinese firms in strategic sectors received between three and eight times more state support than competitors in OECD countries over the past 20 years, giving Chinese firms a huge leg up in highly competitive markets. Indeed, OECD estimates that this massive government aid--spanning direct grants and below-market loans-- drove roughly 60% of Chinese companies' global market share gains over the past two decades. Chinese companies receive subsidies equivalent to roughly 2.5% of their revenue, compared to just 0.3% seen by firms in peer nations like Japan and South Korea.”

     Subsidies come in the form of government grants, income tax concessions, and below-market borrowings.

     China is especially subsidizing semiconductor chip manufacturing at a high rate, which has enabled it to increase exports by 83.7%. They also heavily subsidize solar panel manufacture.

“State-backed Chinese subsidies averaged nearly 3.2% of annual firm revenues, enabling manufacturers to heavily outinvest competitors and secure over 80% control of the entire photovoltaic supply chain.”

     The OECD report notes that this is a key reason the price of solar panels has dropped by 90% over the past decade and a half, as the panels are sold near the breakeven point. Kimani writes:

“But while it may give states more power to wield, the OECD warns that these ongoing, large-scale subsidies are fueling global industrial overcapacity, artificially depressing international prices and undercutting firms that are actually better and more innovative.”

     He notes that China is phasing out some of its solar panel manufacturing subsidies due to declining profitability as a result of oversupply. He calls China’s solar super-subsidization ‘clean energy hegemony.’ He writes that Western nations are responding to this hegemony by enacting tariffs, not just the U.S., but the EU as well. As he notes below, market distortion is being met not only with tariffs but also by increasing our own subsidies to better compete.

“The uncomfortable reality is that Western economies assumed for decades that private capital, comparative advantage, and open markets would determine the industrial winner. However, China has spent that time building national champions with patient state capital, cheap financing, protected domestic markets, and long-term strategic planning. Tariffs can slow the flow of Chinese products across borders, but little else. The West’s biggest economies now face the choice of whether to try to compete with China on similar terms or whether there is still faith in a private market free-for-all to operate in the national interest.”

     The OECD report says the key to understanding the effects of subsidization on markets is to acquire accurate data, which they can use to derive numbers such as those below. Subsidization has enabled China to gain the most in market share, which does not equate to higher productivity or profitability.

“Around 22% of global market share gains by firms that expanded over the past two decades can be linked to the subsidies they received, rising to 60% for Chinese firms. However, while subsidies increased firms’ market shares, they did not lead to significant gains in productivity or profitability.”

“Large and persistent industrial subsidies can distort global markets, creating unfair competitive advantages and contributing to excess supply capacity,” OECD Secretary-General Mathias Cormann said. “To monitor and analyse how subsidies are shaping global markets, reliable data on industrial subsidies is key. The OECD MAGIC database helps countries build a shared understanding of the challenges, paving the way for co-ordinated efforts to make the global trading system fairer and function better without compromising the benefits of open markets and rules-based trade.”

     The report examines subsidization for each sector in detail. It shows how it mathematically derives the levels and effects of subsidization. From the graphs below, one can see that China is indeed the king of subsidization, and solar and semiconductors are the most subsidized industries.

     The figure below shows the global revenue shares of each sector by country (China, OECD-Asia Pacific, OECD-Europe, OECD-North America), indicating where subsidization has led to concentration of industry market shares.

 

References:

 

Industrial subsidies reach highest levels since the global financial crisis, says OECD. Press release. 1 June 2026. Industrial subsidies reach highest levels since the global financial crisis, says OECD

China's subsidy machine is reshaping global capitalism. Alex Kimani. Oil Price US. June 8, 2026. China's subsidy machine is reshaping global capitalism

OECD MAGIC Database of Industrial Subsidies. June 2026. OECD MAGIC Database of Industrial Subsidies (EN)