DAVOS, Switzerland — When U.S. President Donald Trump arrives in the snowy Alpine village of Davos this week, it will mark both the culmination of a yearlong courtship — and a turning point for a forum once synonymous with liberal globalism. This year’s World Economic Forum, which starts Monday, underscores a sharp shift for an event long caricatured as a “woke” talking shop: Climate and diversity have slipped down the agenda, AI and growth are ascendant, and the United States — led by Trump and his inner circle — is set to dominate the stage. That shift coincided with a monthslong campaign to land the U.S. president and reassert Davos’ relevance after years of drift. “Post-Davos last year, I started discussions with the White House and also coordinating with Chief of Staff Susie Wiles,” Børge Brende, president and CEO of the World Economic Forum, told POLITICO in a video call from his office in Geneva last week. “I also visited D.C. in early December, had meetings in the White House, but also with the different Cabinet secretaries, and now we are in a situation where Trump is coming, and we also have five key Cabinet secretaries,” he said. “There will be a broad footprint of the U.S. in Davos.” Brende, a former Norwegian foreign minister, has clearly made it his mission to secure star speakers for the Alpine summit of the world’s business and political elite. After limp Covid-era editions, a sharp jump in participation costs and leadership turmoil for the WEF, Trump’s star turn — flanked by many of MAGA’s most powerful players — amounts to a vote of confidence in a forum some had written off as outdated or adrift. The Trump administration will be the star presence in Davos this year — and the focus of much of the dealmaking around it. | Anna Moneymaker/Getty Images That U.S. dominance coincides with a broader shift in the program itself.  The same gathering that once gave Greta Thunberg its main stage for her “our house is on fire” warning about the climate crisis, that celebrated an all-female lineup of co-chairs in the wake of #MeToo, and that pushed governments to track progress toward the United Nations’ Paris Agreement and the Sustainable Development Goals — is now clearing space for Trump’s MAGA agenda at a moment when the U.S. president has once again upended global diplomacy by threatening tariffs on European countries over their resistance to his efforts to take over Greenland. Trump’s entourage will include Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, Energy Secretary Chris Wright, U.S. special envoy to the Middle East Steve Witkoff and Trump’s son-in-law, Jared Kushner. The VIP treatment is evident. Brende twice stopped the interview to take a call from Kushner. “Say hello to Ivanka,” he said, before muting himself. WOKE IS OUT, AI IS IN This year’s WEF has the somewhat milquetoast theme of “A Spirit of Dialogue.” Previously trendy topics around green and diversity have been largely stripped out and replaced with formulations like “building prosperity within planetary boundaries” and “investing in people.” Elite participants will be treated to discussions like “Business Case for Nature,” “Corporate Ladders, AI Reshuffled” and “Science as a Growth Engine,” with the juggernaut AI industry and its potential for economic growth a key focus of the program. Asked whether the agenda was tailored to draw in the Trump administration, Brende said the forum is “independent, impartial” and the agenda is “as we planned and is not edited by any outside players.” Intentional or not, there’s a clear bend away from “woke” topics for this edition — though Davos regulars argue it reflects the moment rather than a conscious strategy. It’s “entirely reasonable to focus on environmental, social justice concerns, but right now the world is much more concerned with the thorny questions of geopolitics,” said Clayton Allen, practice head for the United States at the Eurasia Group. Mike Rubino, a former Trump administration official, now a partner at Forward Global and Ballard Partners, said the shift in focus is “kind of part and parcel of the new world order.”  “That stuff has gone out of fashion,” he said, pointing to the rise and fall of nuclear energy on the Davos agenda and the waning attention paid to the Ukraine war. European officials have privately cast the forum as a venue to press Trump to personally endorse American-backed security guarantees discussed in Paris last week. | Telmo Pinto/LightRocket via Getty Images Meanwhile, Davos’ traditional billionaire business and finance class will be meeting AI “hyperscalers” as they toast record highs in their personal wealth.  The head of AI giant Nvidia, Jensen Huang, is another star speaker, while top executives from Microsoft, Meta, Palantir, Anthropic and OpenAI will stack meetings on the sidelines with firms like JPMorgan, Goldman Sachs, BlackRock and Salesforce. U.S. OUT IN FORCE  The Trump administration will be the star presence at Davos this year — and the focus of much of the dealmaking around it. Allen said his clients are “massively interested in anything relating to Trump’s approach to the rest of the world. Anything Trump does, any interaction he has with foreign leaders … just huge interest.” A slate of European leaders are expected in Davos. They will be scrambling to negotiate with Trump over his threat of fresh tariffs against the EU related to the White House campaign to take control of Greenland, and the suspension of the EU-U.S. trade deal. French President Emmanuel Macron and European Commission President Ursula von der Leyen are among those attending, alongside leaders from Germany, Poland, Spain and several other EU countries, as well as NATO Secretary-General Mark Rutte. Ukrainian President Volodymyr Zelenskyy is also expected, alongside leaders who hope to use the forum to lock in U.S. commitments on a potential Ukraine peace framework, whether by endorsing American-backed security guarantees or securing his backing for a narrower economic pact tied to Ukraine’s postwar recovery. “There’s much more excitement” this year, Rubino said.  “You’re seeing a scramble of CEOs not just attempting to gain access to the reception that [Trump] will be hosting, but also to gain entrance to the USA House,” he added, referring to the small church hosting U.S. administration officials and business leaders throughout the week, sponsored at top dollar by Microsoft and McKinsey. One U.S. CEO has played a pivotal role in shoring up the WEF: BlackRock’s Larry Fink.  Fink was brought in as interim co-chair after WEF founder Klaus Schwab resigned amid whistleblower allegations over his management of the forum. (A WEF probe found “no evidence of material wrongdoing.”) His departure was followed by a public back-and-forth over whether European Central Bank President Christine Lagarde would step down before the end of her mandate to fill Schwab’s shoes, which she ultimately denied.  After those “challenging times,” WEF leadership “moved fast” to shore things up, Brende said. Fink, along with Swiss billionaire businessman André Hoffmann, brought financial and business clout to the organization and were sufficiently well-connected to attract star speakers.  The arrangement has been going “really well,” Brende said. “I speak to them almost every day, and it’s a great team.”   According to one insider, WEF founder Schwab is expected to skip this year’s summit.

The deployment of European troops in Greenland doesn’t alter U.S. President Donald Trump’s plan to get his hands on the Arctic island, the White House said. “I don’t think troops in Europe impacts the president’s decision-making process or impact his goal of the acquisition of Greenland at all,” White House spokesperson Karoline Leavitt told reporters on Thursday when asked whether recent announcements of European boots on the ground would alter Trump’s calculus. This week, several European nations including France, Germany, Sweden, Finland, Norway and the Netherlands said they would send troops to Greenland to take part in a Danish military exercise — with some of them already there. Estonia is participating in the planning and “is ready to put boots on the ground if requested.” NATO is not involved in the military exercise, which is an inter-governmental drill. The U.S. president has repeatedly threatened the use of military force to seize the Arctic island, which he claims is at risk of falling into the hands of Russia and China. After meeting with U.S. Vice President JD Vance and Secretary of State Marco Rubio at the White House on Wednesday, the Danish foreign minister said Denmark and Greenland “still have a fundamental disagreement” with Washington. French President Emmanuel Macron told the country’s armed forces earlier on Thursday that France would deploy land, air and naval assets to Greenland in the coming days. “France and Europeans must continue, wherever their interests are threatened, to be present without escalation, but uncompromising on respect for territorial sovereignty,” he said. The U.K. and Norway are publicly backing a push to set up a NATO mission dubbed Arctic Sentry that would increase the alliance’s footprint and reassure Trump of Europe’s commitment to security in the region.

Denmark and allied countries said Wednesday they will increase their military presence in Greenland as part of expanded exercises, amid intensifying pressure from Washington over the Arctic island’s sovereignty. “Security in the Arctic is of crucial importance to the Kingdom and our Arctic allies, and it is therefore important that we, in close cooperation with allies, further strengthen our ability to operate in the region,” said Danish Defense Minister Troels Lund Poulsen. “The Danish Defense Forces, together with several Arctic and European allies, will explore in the coming weeks how an increased presence and exercise activity in the Arctic can be implemented.” In a statement, Denmark’s defense ministry said additional Danish aircraft, naval assets and troops will be deployed in and around Greenland starting immediately as part of expanded training and exercise activity. The effort will include “receiving allied forces, operating fighter jets and carrying out maritime security tasks,” the ministry said. Swedish Prime Minister Ulf Kristersson said on X that Swedish officers are arriving in Greenland as part of a multinational allied group to help prepare upcoming phases of Denmark’s Operation Arctic Endurance exercise, following a request from Copenhagen. A European diplomat said that troops from the Netherlands, Canada and Germany were also taking part. The diplomat and another official with first-hand knowledge said France was also involved. Defense ministries in other countries did not immediately respond to requests for comment. So far, the deployment remains intergovernmental and has not been formally approved by NATO, according to two people familiar with the matter. “The goal is to show that Denmark and key allies can increase their presence in the Arctic region,” said a third person briefed on the plans, demonstrating their “ability to operate under the unique Arctic conditions and thereby strengthen the alliance’s footprint in the Arctic, benefiting both European and transatlantic security.” The announcement landed the same day U.S. Vice President JD Vance and Secretary of State Marco Rubio met with the Danish and Greenlandic foreign ministers in Washington, following days of rising transatlantic tensions over President Donald Trump’s bid to take over the strategic island. Trump escalated the dispute earlier Wednesday in a Truth Social post, declaring that “the United States needs Greenland for the purpose of National Security,” calling it “vital” for his planned “Golden Dome” missile defense system.  He also insisted that seizing Greenland would not destroy NATO, despite warnings from Danish Prime Minister Mette Frederiksen that such a move would end the Atlantic alliance. “Militarily, without the vast power of the United States … NATO would not be an effective force or deterrent — Not even close!” Trump posted. “They know that, and so do I. NATO becomes far more formidable and effective with Greenland in the hands of the UNITED STATES.” Denmark and Greenland have repeatedly rejected any suggestion of a transfer of sovereignty, stressing that Greenland is a self-governing territory within the Kingdom of Denmark and that its future is for Greenlanders alone to decide. Greenland’s government said it is working closely with Copenhagen to ensure local involvement and transparency, with Denmark’s Arctic Command tasked with keeping the population informed. “If we have to choose between the United States and Denmark here and now, we choose Denmark,” Jens-Frederik Nielsen, Greenland’s prime minister, said at a press conference Tuesday. In response, Trump said, “That’s their problem. I disagree with him. I don’t know who he is. Don’t know anything about him, but that’s going to be a big problem for him.”

The message from Capitol Hill on both sides of the aisle is clear: Get ready for U.S. relations with China to spiral all over again in the new year. The one-year trade truce brokered in October between President Donald Trump and Chinese leader Xi Jinping is already looking shaky. And lawmakers are preparing to reup clashes over trade, Taiwan and cyber-intrusions when they return in January. “It’s like a heavyweight fight, and we’re in that short time period in-between rounds, but both sides need to be preparing for what is next after the truce,” Rep. Greg Stanton (D-Ariz.), a member of the House Select Committee on China, said in an interview. POLITICO talked to more than 25 lawmakers, including those on the House Select Committee on China, the House Foreign Affairs Committee’s East Asia subcommittee and the Congressional Executive Commission on China, for their views on the durability of the trade treaty. Both Republicans and Democrats warned of turbulence ahead. More than 20 of the lawmakers said they doubt Xi will deliver on key pledges the White House said he made in October, including reducing the flow of precursor chemicals to Mexico that cartels process into fentanyl and buying agreed volumes of U.S. agricultural goods. “China can never be trusted. They’re always looking for an angle,” Sen. Thom Tillis (R-N.C.) said. That pessimism comes despite an easing in U.S.-China tensions since the Trump-Xi meeting in South Korea. The bruising cycle of tit-for-tat tariffs that briefly hit triple digits earlier this year is currently on pause. Both countries have relaxed export restrictions on essential items (rare earths for the U.S., chip design software for China), while Beijing has committed to “expanding agricultural product trade” in an apparent reference to the suspension of imports of U.S. agricultural products it imposed earlier this year. This trend may continue, given that Trump is likely to want stability in the U.S.-China relationship ahead of a summit with Xi planned for April in Beijing. “We’re starting to see some movement now on some of their tariff issues and the fentanyl precursor issue,” Sen. Steve Daines (R-Mont.) said. But a series of issues have been brushed aside in negotiations or left in limbo — a status quo the Trump administration can only maintain for so long. The U.S.-China trade deal on rare earths that Bessent said the two countries would finalize by Thanksgiving remains unsettled. And the White House hasn’t confirmed reporting from earlier this month that Beijing-based ByteDance has finalized the sale of the TikTok social media app ahead of the Jan. 23 deadline for that agreement. “The idea that we’re in a period of stability with Beijing is simply not accurate,” said Sen. Jeanne Shaheen (D-N.H.), ranking member of the Senate Foreign Relations Committee. Shaheen has been sounding the alarm on China’s national security threats since she entered the Senate in 2009. But even some lawmakers who have been more open to engagement with Beijing — such as California Democratic Reps. Ro Khanna and Ami Bera — said that they don’t expect the armistice to last. The White House is more upbeat about the prospects for U.S.-China trade ties. “President Trump’s close relationship with President Xi is helping ensure that both countries are able to continue building on progress and continue resolving outstanding issues,” the White House said in a statement, adding that the administration “continues to monitor China’s compliance with our trade agreement.” It declined to comment on the TikTok deal. Still, the lawmakers POLITICO spoke with described four issues that could derail U.S.-China ties in the New Year: A SOYBEAN SPOILER U.S. soybean farmers’ reliance on the Chinese market gives Beijing a powerful non-tariff trade weapon — and China doesn’t appear to be following through on promises to renew purchases. The standoff over soybeans started in May, when China halted those purchases, raising the prospect of financial ruin across farming states including Illinois, Iowa, Minnesota, Nebraska and Indiana — key political constituencies for the GOP in the congressional midterm elections next year. The White House said last month that Xi committed to buying 12 million metric tons of U.S. soybeans in November and December. But so far, Beijing has only purchased a fraction of that agreed total, NBC reported this month. “What agitates Trump and causes him to react quickly are things that are more domestic and closer to home,” Rep. Jill Tokuda (D-Hawaii) said. China’s foot-dragging on soybean purchases “is the most triggering because it’s hurting American farmers and consumers, so that’s where we could see the most volatility in the relationship,” she said. That trigger could come on Feb. 28 — the new deadline for that 12 million metric ton purchase, which Treasury Secretary Scott Bessent announced earlier this month. The Chinese embassy in Washington declined to comment on whether Beijing plans to meet this deadline. The White House said one of the aspects of the trade deal it is monitoring is soybean purchases through this growing season. THE TAIWAN TINDERBOX Beijing’s threats to invade Taiwan are another near-term potential flashpoint, even though the U.S. hasn’t prioritized the issue in its national security strategy or talks between Xi and Trump. China has increased its preparations for a Taiwan invasion this year. In October, the Chinese military debuted a new military barge system that addresses some of the challenges of landing on the island’s beaches by deploying a bridge for cargo ships to unload tanks or trucks directly onto the shore. “China is tightening the noose around the island,” said Rep. Ro Khanna (D-Calif.), who joined a bipartisan congressional delegation to China in September and returned calling for better communications between the U.S. and Chinese militaries. Some of the tension around Taiwan is playing out in the wider region, as Beijing pushes to expand its military reach and its influence. Chinese fighter jets locked radar — a prelude to opening fire — on Japanese aircraft earlier this month in the East China Sea. “There is a real chance that Xi overplays his hand on antagonizing our allies, particularly Australia and Japan,” Rep. Seth Moulton (D-Mass.) said. “There is still a line [China] cannot cross without making this truce impossible to sustain.” The U.S. has a decades-long policy of “strategic ambiguity” under which it refuses to spell out how the U.S. would respond to Chinese aggression against Taiwan. Trump has also adhered to that policy. “You’ll find out if it happens,” Trump said in an interview with 60 Minutes in November. MORE EXPORT RESTRICTIONS ON THE WAY Beijing has eased its export restrictions on rare earths — metallic elements essential to both civilian and military applications — but could reimpose those blocks at any time. Ten of the 25 lawmakers who spoke to POLITICO said they suspect Beijing will reimpose those export curbs as a convenient pressure point in the coming months. “At the center of the crack in the truce is China’s ability to levy export restrictions, especially its chokehold on the global supply of rare earths and other critical minerals,” Rep. André Carson (D-Ind.) said. Others are worried China will choose to expand its export controls to another product category for which it has market dominance — pharmaceuticals. Beijing supplies 80 percent of the U.S. supply of active pharmaceutical ingredients — the foundations of common drugs to treat everything from high blood pressure to type 2 diabetes. “Overnight, China could turn off the spigot and many basic pharmaceuticals, including things like aspirin, go away from the supply chain in the United States,” Rep. Nathaniel Moran (R-Texas) said. China restarted exports of rare earths earlier this month, and its Commerce Ministry pledged “timely approval” of such exports under a new licensing system, state media reported. Beijing has not indicated its intent to restrict the export of pharmaceuticals or their components as a trade weapon. But the U.S.-China Economic and Security Review Commission urged the Food and Drug Administration to reduce U.S. reliance on Chinese sources of pharmaceuticals in its annual report last month. The Chinese embassy in Washington didn’t respond to a request for comment. GROWING CHINESE MILITARY MUSCLE China’s drive to develop a world-class military that can challenge traditional U.S. dominion of the Indo-Pacific could also derail relations between Washington and Beijing in 2026. China’s expanding navy — which, at more than 200 warships, is now the world’s largest — is helping Beijing show off its power across the region. The centerpiece of that effort in 2025 has been the addition of a third aircraft carrier, the Fujian, which entered into service last month. The Fujian is two-thirds the size of the USS Gerald R. Ford carrier. But like the Ford, it boasts state-of-the-art electromagnetic catapults to launch J-35 and J-15T fighter jets. The Trump administration sees that as a threat. The U.S. aims to insulate allies and partners in the Indo-Pacific from possible Chinese “sustained successful military aggression” powered by Beijing’s “historic military buildup,” Defense Secretary Pete Hegseth said earlier this month at the Reagan National Defense Forum. Five lawmakers said they see China’s increasingly aggressive regional military footprint as incompatible with U.S. efforts to maintain a stable relationship with Beijing in the months ahead. “We know the long-term goal of China is really economic and diplomatic and military domination around the world, and they see the United States as an adversary,” Moran said. Daniel Desrochers contributed to this report.

BRUSSELS — More than 80 percent of Europe’s companies will be freed from environmental-reporting obligations after EU institutions reached a deal on a proposal to cut green rules on Monday.   The deal is a major legislative victory for European Commission President Ursula von der Leyen in her push cut red tape for business, one of the defining missions of her second term in office. However, that victory came at a political cost: The file pushed the coalition that got her re-elected to the brink of collapse and led her own political family, the center-right European People’s Party (EPP), to team up with the far right to get the deal over the line. The new law, the first of many so-called omnibus simplification bills, will massively reduce the scope of corporate sustainability disclosure rules introduced in the last political term. The aim of the red tape cuts is to boost the competitiveness of European businesses and drive economic growth. The deal concludes a year of intense negotiations between EU decision-makers, investors, businesses and civil society, who argued over how much to reduce reporting obligations for companies on the environmental impacts of their business and supply chains — all while the effects of climate change in Europe were getting worse. “This is an important step towards our common goal to create a more favourable business environment to help our companies grow and innovate,” said Marie Bjerre, Danish minister for European affairs. Denmark, which holds the presidency of the Council of the EU until the end of the year, led the negotiations on behalf of EU governments. Marie Bjerre, Den|mark’s Minister for European affairs, who said the agreement was an important step for a more favourable business environment. | Philipp von Ditfurth/picture alliance via Getty Images Proposed by the Commission last February, the omnibus is designed to address businesses’ concerns that the paperwork needed to comply with EU laws is costly and unfair. Many companies have been blaming Europe’s overzealous green lawmaking and the restrictions it places on doing business in the region for low economic growth and job losses, preventing them from competing with U.S. and Chinese rivals.   But Green and civil society groups — and some businesses too — argued this backtracking would put environmental and human health at risk. That disagreement reverberated through Brussels, disturbing the balance of power in Parliament as the EPP broke the so-called cordon sanitaire — an unwritten rule that forbids mainstream parties from collaborating with the far right — to pass major cuts to green rules. It set a precedent for future lawmaking in Europe as the bloc grapples with the at-times conflicting priorities of boosting economic growth and advancing on its green transition. The word “omnibus” has since become a mainstay of the Brussels bubble vernacular with the Commission putting forward at least 10 more simplification bills on topics like data protection, finance, chemical use, agriculture and defense. LESS PAPERWORK   The deal struck by negotiators from the European Parliament, EU Council and the Commission includes changes to two key pieces of legislation in the EU’s arsenal of green rules: The Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD).  The rules originally required businesses large and small to collect and publish data on their greenhouse gas emissions, how much water they use, the impact of rising temperatures on working conditions, chemical leakages and whether their suppliers — which are often spread across the globe — respect human rights and labor laws.    Now the reporting rules will only apply to companies with more than 1,000 employees and €450 million in net turnover, while only the largest companies — with 5,000 employees and at least €1.5 billion in net turnover — are covered by supply chain due diligence obligations. They also don’t have to adopt transition plans, with details on how they intend to adapt their business model to reach targets for reducing greenhouse gas emissions.   Importantly the decision-makers got rid of an EU-level legal framework that allowed civilians to hold businesses accountable for the impact of their supply chains on human rights or local ecosystems. MEPs have another say on whether the deal goes through or not, with a final vote on the file slated for Dec. 16. It means that lawmakers have a chance to reject what the co-legislators have agreed to if they consider it to be too far from their original position.

High energy prices, risks on CBAM enforcement and promotion of lead markets, as well as increasing carbon costs are hampering domestic and export competitiveness with non-EU producers. The cement industry is fundamental to Europe’s construction value chain, which represents about 9 percent of the EU’s GDP. Its hard-to-abate production processes are also currently responsible for 4 percent of EU emissions, and it is investing heavily in measures aimed at achieving full climate neutrality by 2050, in line with the European Green Deal. Marcel Cobuz, CEO, TITAN Group  “We should take a longer view and ensure that the cement industry in EU stays competitive domestically and its export market shares are maintained.” However, the industry’s efforts to comply with EU environmental regulations, along with other factors, make it less competitive than more carbon-intensive producers from outside Europe. Industry body Cement Europe recently stated that, “without a competitive business model, the very viability of the cement industry and its prospects for industrial decarbonization are at risk.” Marcel Cobuz, member of the Board of the Global Cement and Concrete Association and CEO of TITAN Group, one of Europe’s leading producers, spoke with POLITICO Studio about the vital need for a clear policy partnership with Brussels to establish a predictable regulatory and financing framework to match the industry’s decarbonization ambitions and investment efforts to stay competitive in the long-term. POLITICO Studio: Why is the cement industry important to the EU economy?  Marcel Cobuz: Just look around and you will see how important it is. Cement helped to build the homes that we live in and the hospitals that care for us. It’s critical for our transport and energy infrastructure, for defense and increasingly for the physical assets supporting the digital economy. There are more than 200 cement plants across Europe, supporting nearby communities with high-quality jobs. The cement industry is also key to the wider construction industry, which employs 14.5 million people across the EU. At the same time, cement manufacturers from nine countries compete in the international export markets. PS: What differentiates Titan within the industry?  MC: We have very strong European roots, with a presence in 10 European countries. Sustainability is very much part of our DNA, so decarbonizing profitably is a key objective for us. We’ve reduced our CO2 footprint by nearly 25 percent since 1990, and we recently announced that we are targeting a similar reduction by 2030 compared to 2020. We are picking up pace in reducing emissions both by using conventional methods, like the use of alternative sources of low-carbon energy and raw materials, and advanced technologies. TITAN/photo© Nikos Daniilidis We have a large plant in Europe where we are exploring building one of the largest carbon capture projects on the continent, with support from the Innovation Fund, capturing close to two million tons of CO2 and producing close to three million tons of zero-carbon cement for the benefit of all European markets. On top of that, we have a corporate venture capital fund, which partners with startups from Europe to produce the materials of tomorrow with  very low or zero carbon. That will help not only TITAN but the whole industry to accelerate its way towards the use of new high-performance materials with a smaller carbon footprint. PS: What are the main challenges for the EU cement industry today?  MC: Several factors are making us less competitive than companies from outside the EU. Firstly, Europe is an expensive place when it comes to energy prices. Since 2021, prices have risen by close to 65 percent, and this has a huge impact on cement producers, 60 percent of whose costs are energy-related. And this level of costs is two to three times higher than those of our neighbors. We also face regulatory complexity compared to our outside competitors, and the cost of compliance is high. The EU Emissions Trading System (ETS) cost for the cement sector is estimated at €97 billion to €162 billion between 2023 and 2034. Then there is the need for low-carbon products to be promoted ― uptake is still at a very low level, which leads to an investment risk around new decarbonization technologies. > We should take a longer view and ensure that the cement industry in the EU > stays competitive domestically and its export market shares are maintained.” All in all, the playing field is far from level. Imports of cement into the EU have increased by 500 percent since 2016. Exports have halved ― a loss of value of one billion euros. The industry is reducing its cost to manufacture and to replace fossil fuels, using the waste of other industries, digitalizing its operations, and premiumizing its offers. But this is not always enough. Friendly policies and the predictability of a regulatory framework should accompany the effort. PS: In January 2026, the Carbon Border Adjustment Mechanism will be fully implemented, aimed at ensuring that importers pay the same carbon price as domestic producers. Will this not help to level the playing field? MC: This move is crucial, and it can help in dealing with the increasing carbon cost. However, I believe we already see a couple of challenges regarding the CBAM. One is around self-declaration: importers declare the carbon footprint of their materials, so how do we avoid errors or misrepresentations? In time there should be audits of the importers’ industrial installations and co-operation with the authorities at source to ensure the data flow is accurate and constant. It really needs to be watertight, and the authorities need to be fully mobilized to make sure the real cost of carbon is charged to the importers. Also, and very importantly, we need to ensure that CBAM does not apply to exports from the EU to third countries, as carbon costs are increasingly a major factor making us uncompetitive outside the EU, in markets where we were present for more than 20 years. > CBAM really needs to be watertight, and the authorities need to be fully > mobilized to make sure the real cost of carbon is charged to the importers.” PS: In what ways can the EU support the European cement industry and help it to be more competitive? MC: By simplifying legislation and making it more predictable so we can plan our investments for the long term. More specifically, I’m talking about the revamping of the ETS, which in its current form implies a phase-down of CO2 rights over the next decade. First, we should take a longer view and ensure that the cement industry stays competitive and its export market shares are maintained, so a policy of more for longer should accompany the new ETS. > In export markets, the policy needs to ensure a level playing field for > European suppliers competing in international destination markets, through a > system of free allowances or CBAM certificates, which will enable exports to > continue.” We should look at it as a way of funding decarbonization. We could front-load part of ETS revenues in a fund that would support the development of technologies such as low-carbon materials development and CCS. The roll-out of Infrastructure for carbon capture projects such as transport or storage should also be accelerated, and the uptake of low-carbon products should be incentivized. More specifically on export markets, the policy needs to ensure a level playing field for European suppliers competing in international destination markets, through a system of free allowances or CBAM certificates, which will enable exports to continue. PS: Are you optimistic about the future of your industry in Europe?  MC: I think with the current system of phasing out CO2 rights, and if the CBAM is not watertight, and if energy prices remain several times higher than in neighboring countries, and if investment costs, particularly for innovating new technologies, are not going to be financed through ETS revenues, then there is an existential risk for at least part of the industry. Having said that, I’m optimistic that, working together with the European Commission we can identify the right policy making solutions to ensure our viability as a strategic industry for Europe. And if we are successful, it will benefit everyone in Europe, not least by guaranteeing more high-quality jobs and affordable and more energy-efficient materials for housing ― and a more sustainable and durable infrastructure in the decades ahead. -------------------------------------------------------------------------------- Disclaimer POLITICAL ADVERTISEMENT * The sponsor is Titan Group * The advertisement is linked to policy advocacy around industrial competitiveness, carbon pricing, and decarbonization in the EU cement and construction sectors, including the EU’s CBAM legislation, the Green Deal, and the proposed revision of the ETS. More information here.

BRUSSELS — Europe’s most energy-intensive industries are worried the European Union’s carbon border tax will go too soft on heavily polluting goods imported from China, Brazil and the United States — undermining the whole purpose of the measure. From the start of next year, Brussels will charge a fee on goods like cement, iron, steel, aluminum and fertilizer imported from countries with weaker emissions standards than the EU’s. The point of the law, known as the Carbon Border Adjustment Mechanism, is to make sure dirtier imports don’t have an unfair advantage over EU-made products, which are charged around €80 for every ton of carbon dioxide they emit. One of the main conundrums for the EU is how to calculate the carbon footprint of imports when the producers don’t give precise emissions data. According to draft EU laws obtained by POLITICO, the European Commission is considering using default formulas that EU companies say are far too generous. Two documents in particular have raised eyebrows. One contains draft benchmarks to assess the carbon footprint of imported CBAM goods, while the second — an Excel sheet seen by POLITICO — shows default CO2 emissions values for the production of these products in foreign countries. These documents are still subject to change. National experts from EU countries discussed the controversial texts last Wednesday during a closed-door meeting, and asked the Commission to rework them before they can be adopted. That’s expected to happen over the next few weeks, according to two people with knowledge of the talks. Multiple industry representatives told POLITICO that the proposed estimated carbon footprint values are too low for a number of countries, which risks undermining the efficiency of the CBAM. For example, some steel products from China, Brazil and the United States have much lower assumed emissions than equivalent products made in the EU, according to the tables. Ola Hansén, public affairs director of the green steel manufacturer Stegra, said he had been “surprised” by the draft default values that have been circulating, because they suggest that CO2 emissions for some steel production routes in the EU were higher than in China, which seemed “odd.” “Our recommendation would be [to] adjust the values, but go ahead with the [CBAM] framework and then improve it over time,” he said. Antoine Hoxha, director general of industry association Fertilizers Europe, also said he found the proposed default values “quite low” for certain elements, like urea, used to manufacture fertilizers. “The result is not exactly what we would have thought,” he said, adding there is “room for improvement.” But he also noted that the Commission is trying “to do a good job but they are extremely overwhelmed … It’s a lot of work in a very short period of time.” Multiple industry representatives told POLITICO that the proposed estimated carbon footprint values are too low for a number of countries, which risks undermining the efficiency of the CBAM. | Photo by VCG via Getty Images While a weak CBAM would be bad for many emissions-intensive, trade-exposed industries in the EU, it’s likely to please sectors relying on cheap imports of CBAM goods — such as European farmers that import fertilizer — as well as EU trade partners that have complained the measure is a barrier to global free trade. The European Commission declined to comment. DEFAULT VERSUS REAL EMISSIONS Getting this data right is crucial to ensure the mechanism works and encourages companies to lower their emissions to pay a lower CBAM fee. “Inconsistencies in the figures of default values and benchmarks would dilute the incentive for cleaner production processes and allow high-emission imports to enter the EU market with insufficient carbon costs,” said one CBAM industry representative, granted anonymity to discuss the sensitive talks. “This could result in a CBAM that is not only significantly less effective but most likely counterproductive.” The default values for CO2 emissions are like a stick. When the legislation was designed, they were expected to be set quite high to “punish importers that are not providing real emission data,” and encourage companies to report their actual emissions to pay a lower CBAM fee, said Leon de Graaf, acting president of the Business for CBAM Coalition. But if these default values are too low then importers no longer have any incentive to provide their real emissions data. They risk making the CBAM less effective because it allows imported goods to appear cleaner than they really are, he said. The Commission is under pressure to adopt these EU acts quickly as they’re needed to set the last technical details for the implementation of the CBAM, which applies from Jan. 1. However, de Graaf warned against rushing that process. On the one hand, importers “needed clarity yesterday” because they are currently agreeing import deals for next year and at the moment “cannot calculate what their CBAM cost will be,” he said. But European importers are worried too, because once adopted the default emission values will apply for the next two years, the draft documents suggest. The CBAM regulation states that the default values “shall be revised periodically.” “It means that if they are wrong now … they will hurt certain EU producers for at least two years,” de Graaf said.

LONDON — Britain’s global diplomatic footprint could be significantly scaled back as it tries to work out which embassies and buildings to sell off from a sprawling £2.5 billion overseas estate. U.K. budget documents released this week show the Foreign Office is “rationalising” its collection of some 6,500 properties to find “assets to release” — while hundreds of its buildings have fallen into serious disrepair. This will include selling off buildings such as embassies and diplomatic accommodation which are deemed no longer necessary as part of the Foreign Commonwealth and Development Office’s “FCDO2030” overhaul of its work, staffing and footprint in the U.K. and beyond. The budget makes specific mention of finding savings in “high-cost locations such as New York” — which could include a £12 million luxury apartment in the city bought for diplomats in 2019 to help negotiate trade deals with the United States following Brexit. The Foreign Office at the time said it secured the “best deal possible” for the seven-bedroom flat, which occupies the whole 38th floor of 50 United Nations Plaza and has a library, six bathrooms and a powder room. Earlier this year U.K. spending watchdogs the National Audit Office (NAO) and parliament’s own Public Accounts Committee (PAC) raised significant concerns over the state of Britain’s creaking overseas diplomatic estate. Around 933 of its properties (around 15 percent of the total) have been assessed as not being sound or operationally safe. FCDO estimates that it would cost £450 million to clear its maintenance backlog. PAC noted that after selling off large assets, such as its embassy compounds in Bangkok and Tokyo, FCDO “has no remaining large assets that are viable to sell.” It is the latest in a series of cutbacks to Britain’s soft power clout. The government has already come under fire for slashing its international aid budget, which also helps fund the BBC World Service. Olivia O’Sullivan, director of the UK in the World program at the Chatham House think tank, said it was “unsurprising” that the government is looking at its overseas estate to meet the “significant cutbacks” at the FCDO. “The government needs to balance the need for cost-savings with the benefits of having some high-impact spaces it can use for hosting and projecting power and presence,” she added. The Foreign Office is meanwhile undergoing major restructuring. Union officials this week told parliament’s International Development Select Committee that the FCDO is in the process of offering redundancy to its U.K.-based staff — which could result in up to 30 percent cuts to its headcount. Overseas, the department is also reviewing the size and location of its global footprint which encompasses over 250 posts in over 150 countries worldwide. The government was contacted for comment.

ATHENS — Athens and Kyiv signed an agreement on Sunday for Ukraine to import liquified natural gas to help meet the country’s winter energy needs, as Greece becomes the first EU country to actively participate in the U.S. plan to replace “every last molecule of Russian gas” with American LNG. The plan calls for U.S. LNG deliveries routed through Greece from next month to March 2026 via the vertical gas corridor, a newly activated pipeline system for natural gas that includes pipelines, LNG terminals and storage facilities. The project — actively lobbied by the U.S. — is intended to provide energy to Eastern Europe, including Ukraine, with Greece being the entry point for U.S. gas going up to Bulgaria, Romania, Hungary and farther north to Ukraine and Moldova. “Ukraine gains direct access to diversified and reliable energy sources, while Greece becomes a hub for supplying Central and Eastern Europe with American liquefied natural gas,” Prime Minister Kyriakos Mitsotakis said, emphasizing Greece’s growing role as an energy hub. The agreement will “cover nearly €2 billion needed for gas imports to compensate for the losses in Ukrainian production caused by Russian strikes,” Zelenskyy said in a statement Sunday. The deal was signed during a visit by Zelenskyy to Athens, attended by Mitsotakis, Greek Energy Minister Stavros Papastavrou and U.S. Ambassador Kimberly Guilfoyle. The agreement signed on Sunday formalized a declaration of intent between Greece’s gas company DEPA Commercial and Ukraine’s Naftogaz. Greece aims to showcase its importance as an entry point for American LNG, bolstering Europe’s independence from Russian gas. Athens last week signed a 20-year deal to import 700 million cubic meters of U.S. LNG a year starting in 2030, aiming to boost U.S. LNG shipments from Greece to its northern European neighbors. “What we see for the future of Greece and the United States is Greece being an energy hub and showing this energy dominance that both of our countries can experience and work together cooperatively to achieve tremendous outcomes,” Ambassador Guilfoyle said in an interview with Antenna TV on Thursday. The deal was signed during a visit by Zelenskyy to Athens, attended by Mitsotakis, Greek Energy Minister Stavros Papastavrou and U.S. Ambassador Kimberly Guilfoyle. | Clive Brunskill/Getty Images “Cooperation within the framework of the ‘vertical corridor’ may prove to be more decisive for peace and prosperity in the region than NATO,” Energy Minister Papastavrou told a conference in Athens on Tuesday. In addition to the U.S. LNG deal, Greece has opened its waters to gas exploration for the first time in more than four decades, with American help, under an agreement signed with ExxonMobil, the U.S.’s biggest oil company, along with Greece’s Energean and HelleniQ Energy. “This is understood and portrayed to be significantly adding to Greece’s value added as a commercial partner and geopolitical ally,” said Harry Tzimitras, director of the Peace Research Institute Oslo Cyprus Centre. But he also noted criticisms of Greece’s energy push, including environmental consequences, financial challenges and geopolitical risks. “These span the whole gamut of the project’s aspects: Greece would have to double its storage capacity … requiring extensive construction of depots and LNG facilities with serious potential environmental footprint,” Tzimitras said. “U.S. LNG is currently very expensive, straining energy budgets; the likelihood of  geopolitical antagonisms is heightened; and the whole project is identified as going against the efforts to achieve environmental targets, contributing to the delay in transitioning to renewable energy sources,” he said.

BRUSSELS — Lawmakers in the European Parliament on Thursday agreed to exempt more companies from green reporting rules after the center-right, right-wing and far-right groups allied to pass the EU’s first omnibus simplification package. The outcome illustrates the EPP’s willingness to abandon its traditional centrist allies and press ahead with the support of far-right groups to pass its deregulation agenda, setting a precedent for future lawmaking in Parliament for the rest of the mandate. The far-right Patriots and Europe of Sovereign Nations groups and some liberals voted in favor of the center-right European People’s Party’s proposed changes to the European Commission’s first omnibus simplification bill, which were also proposed by right-wing European Conservatives and Reformists. The changes would raise the threshold of corporate sustainability disclosure and due diligence rules so that even fewer companies will have to report on the environmental footprint. 382 MEPs voted in favor, 249 against and 13 abstained. The Parliament also voted to scrap mandatory climate transition plans for companies under EU due diligence rules, to force them to align their business models with the greenhouse gas emission reduction objectives of the Paris Agreement. It comes after months of intense negotiations in which the EPP, the center-left Socialists and Democrats and the centrist Renew group failed to reach a deal among themselves on how far to roll back the reporting rules. The sustainability omnibus bills reviews EU laws on environmental disclosure and supply chain transparency rules to reduce administrative burden for companies in a bid to boost their competitiveness. The Parliament will now enter in negotiations with the Council of the EU and the Commission to finalize a common position on the file.