PARIS — How do you celebrate a major anniversary of the world’s most significant
climate treaty while deprioritizing the fight against climate change?
That’s the quandary in Paris heading into Friday, when the landmark Paris
Agreement turns 10.
With budgets strapped and the fight against climate change losing political
momentum, the only major celebration planned by the French government consists
of a reception inside the Ministry of Ecological Transition hosted by the
minister, Monique Barbut, according to the invitation card seen by POLITICO.
Prime Minister Sébastien Lecornu won’t be there, and it’s unclear if President
Emmanuel Macron will attend.
Lecornu will be talking about health care in the region of Eure,
where he’s from. Macron’s plans for Friday are not yet public, but the day
before he’ll address the “consequences of misinformation on climate change” as
part of a nationwide tour to speak with French citizens about technology and
misinformation.
According to two ministerial advisers, the Elysée Palace had initially planned
to organize an event, details of which were not released, but it was canceled at
the last minute. When contacted about the plans, the Elysée did not respond.
Even if Macron ends up attending the ministerial event, the muted nature of the
celebration is both a symptom of the political backlash against Europe’s green
push and a metaphor for the Paris Agreement’s increasingly imperiled legacy
— sometimes at the hands of France itself, which had been supposed to act as
guarantor of the accord.
“France wants to be the guardian of the Paris Agreement, [but] it also needs to
implement it,” said Lorelei Limousin, a climate campaigner at Greenpeace. “That
means really putting the resources in place, particularly financial resources,
to move away from fossil fuels, both in France and internationally.”
PARIS AGREEMENT’S BIRTHDAY PLANNER
Before being appointed to government, Barbut was Macron’s special climate envoy
and had been tasked with organizing the treaty’s celebration. She told
POLITICO in June that she hoped to use the annual Paris Peace Forum to celebrate
the anniversary, then bring together hundreds of the world’s leading climate
scientists in late November and welcome them at the Elysée.
Those events, which have already come and gone, were supposed to be followed by
a grand finale on Friday.
According to one of the ministerial advisers previously cited, the moratorium on
government communications spending introduced in October by the prime minister
threw a wrench in those plans.
“We’d like to do something more festive, but the problem is that we have no
money,” the adviser said.
Environmentalists say the muted plans point to a government that remains mired
in crisis and shows little interest in prioritizing climate change. Lecornu is
laser-focused on getting a budget passed before the end of the year, whereas
Macron’s packed agenda sees him hopscotching across the globe to tackle
geopolitical crises and touring France to talk about his push to regulate social
media.
Anne Bringault, program director at the Climate Action Network, accused the
government of trying to minimize the anniversary of the treaty “on the sly”
because there “is no political support” for a celebration.
Some hope the government will use the occasion to present an update of its
climate roadmap, the national low-carbon strategy, which is more than two years
overdue.
They also still hope that Lecornu will change his plans and show up to mark the
occasion. Apart from his trip to his fiefdom in the Eure, the prime minister’s
schedule shows no appointments. His office told POLITICO that Lecornu has no
plans to change his schedule for the time being.
As for Macron, it’s still unclear what he’ll be doing on Friday.
This story is adapted from an article published by POLITICO in French.
Tag - Fossil fuels
BRUSSELS — The EU will begin to ban all Russian gas imports to the bloc early
next year after lawmakers, officials and diplomatic negotiators struck a
last-minute deal over a key piece of legislation set to reshape Europe’s energy
sector.
Put forward over the summer, the bill is designed to kill off the EU’s lingering
Russian energy dependency at a critical juncture in the Ukraine war, with Russia
advancing steadily and Kyiv fast running out of cash. While Europe’s imports of
Russian gas have fallen sharply since 2022, the country still accounts for
around 19 percent of its total intake.
The EU is already set to sanction Russian gas imports, but those measures are
temporary and subject to renewal every six months. The new legislation is
designed to make that rupture permanent and put member countries that still
operate contracts with Russia on a surer footing in the event of legal action.
“We were paying to Russia €12 billion per month at the beginning of the war for
fossil fuels. Now we’re down to €1.5 billion per month … We aim to bring it down
to zero,” European Commission President Ursula von der Leyen told reporters on
Wednesday. “This is a good day for Europe and for our independence from Russian
fossil fuels — this is how we make Europe resilient.”
“We wanted to show that Europe will never go back to Russian fossil fuels again
— and the only ones who lost today are Russia and Mr Putin,” Green MEP Ville
Niinistö, one of the Parliament’s two lead negotiators on the file, told
POLITICO.
The law will enter into force on Jan. 1 next year and then apply to different
kinds of gas in phases. Spot market purchases of gas will be banned almost
immediately, while existing short- and long-term contracts will be banned in
2026 and 2027. A prohibition on pipeline gas will come into effect in September
2027, owing to concerns from landlocked countries reliant on Russian gas, such
as Slovakia and Hungary.
Finalized in barely six months, the law was the subject of fierce disagreements
in recent weeks as the European Parliament’s more ambitious stance irked member
countries concerned about the legal risks and technical difficulties of the ban.
But despite fears that talks would be prolonged and even spill over into the new
year, negotiators reached a compromise on key aspects of the law at the last
minute.
Now both sides can claim victory.
Lawmakers, for instance, repeatedly pushed for an earlier timeline and
ultimately ensured that none of the bans would enter into force later than 2027.
The Parliament also secured commitments from national capitals to impose one of
three penalties on companies that breach the rule: a lump sum penalty of €40
million, 3.5 percent of a company’s annual turnover, or 300 percent of the value
of the offending transaction.
Where the Council included its demands, the Parliament was able to water them
down. For instance, lawmakers convinced member countries to tighten a
controversial clause allowing countries facing energy crises to lift the ban —
suspensions will only last four weeks at a time and will need to be reviewed by
Parliament and the Commission.
The Parliament also backed down from a push for a parallel ban on Russian crude
imports in the same file after the Commission promised a separate bill early
next year, as first reported by POLITICO.
The Council did push through its controversial list of “safe” countries from
which the EU can still import gas without rigorous vetting. Lawmakers complained
that the list includes Qatar, Algeria and Nigeria, but have now accepted it, so
long as countries can be excised from the list if they offend.
MEPs gushed that they got far more than they expected and weren’t trampled by
seasoned diplomats, as some had feared.
“We have strengthened the European Commission’s initial proposal by introducing
a pathway towards a ban on oil and its products, ending long-term contracts
sooner than originally proposed, and secured harmonized EU penalties for
non-compliance,” European People’s Party MEP Inese Vaidere, who also led the
file, told POLITICO.
“We achieved more than my realistic landing scenario — earlier phase-outs,
tougher penalties, and closing the loopholes that let Russian gas sneak in,”
said Niinistö.
“This was about proving European unity — Parliament, Council and Commission on
the same side — and showing citizens that we can cut Russia’s revenues faster
and more decisively than ever proposed before.”
Donald Trump’s drive to secure peace in Ukraine must not let Vladimir Putin off
the hook for war crimes committed by Russian forces, a top EU official has
warned, effectively setting a new red line for a deal.
In an interview with POLITICO, Michael McGrath, the European commissioner for
justice and democracy, said negotiators must ensure the push for a ceasefire
does not result in Russia escaping prosecution.
His comments reflect concerns widely held in European capitals that the original
American blueprint for a deal included the promise of a “full amnesty for
actions committed during the war,” alongside plans to reintegrate Russia into
the world economy.
The Trump team’s push to rehabilitate the Kremlin chief comes despite
international condemnation of Russia for alleged crimes including the abduction
of 20,000 Ukrainian children and attacks targeting civilians in Bucha, Mariupol
and elsewhere.
“I don’t think history will judge kindly any effort to wipe the slate clean for
Russian crimes in Ukraine,” McGrath said. “They must be held accountable for
those crimes and that will be the approach of the European Union in all of these
discussions.
“Were we to do so, to allow for impunity for those crimes, we would be sowing
the seeds of the next round of aggression and the next invasion,” he added. “And
I believe that that would be a historic mistake of huge proportions.”
Protesters in London, June 2025. There has been international condemnation of
Russia for alleged crimes including the abduction of 20,000 Ukrainian children
and attacks targeting civilians. | Vuk Valcic/SOPA Images/LightRocket via Getty
Images
Ukrainian authorities say they have opened investigations into more than 178,000
alleged Russian crimes since the start of the war. Last month, a United Nations
commission found Russian authorities had committed crimes against humanity in
targeting Ukrainian residents through drone attacks, and the war crimes of
forcible transfer and deportation of civilians.
“We cannot give up on the rights of the victims of Russian aggression and
Russian crimes,” McGrath said. “Millions of lives have been taken or destroyed,
and people forcibly removed, and we have ample evidence.”
The EU and others have worked to set up a new special tribunal for the crime of
aggression with the aim of bringing Russian leaders to justice for the
full-scale invasion of Ukraine, which began in February 2022.
In March 2023, judges at the International Criminal Court issued an arrest
warrant for Putin, naming him “allegedly responsible for the war crime of
unlawful deportation of population [children]” from Ukraine.
But Trump and his team have so far shown little interest in prosecuting Putin.
In fact, the U.S. president has consistently described his Russian counterpart
in positive terms, often talking about how he is able to have a “good
conversation” with Putin. Trump has expressed the hope of building new economic
and energy partnerships with Russia, and the pair have even discussed organizing
ice hockey matches in Russia and the U.S. once the war is over.
The draft 28-point peace plan that Trump’s team circulated last week continues
in a similar vein.
It states that “Russia will be reintegrated into the global economy” and invited
to rejoin the G8 after being expelled in 2014 following Moscow’s annexation of
Crimea.
“The United States will enter into a long-term economic cooperation agreement
for mutual development in the areas of energy, natural resources,
infrastructure, artificial intelligence, data centers, rare earth metal
extraction projects in the Arctic, and other mutually beneficial corporate
opportunities,” the document said.
The U.S. peace plan proposes to lift sanctions against Russia in stages, though
European leaders have pushed back to emphasize that the removal of EU sanctions
will be for them to decide.
Not everyone in Europe wants to maintain the squeeze on Moscow, however. Hungary
has repeatedly stalled new sanctions, especially on oil and gas, for which it
relies on Russia. Senior politicians in Germany, too, have floated the idea of
lifting sanctions on the Nord Stream gas pipeline from Russia.
BRUSSELS — The European Commission has unveiled a new plan to end the dominance
of planet-heating fossil fuels in Europe’s economy — and replace them with
trees.
The so-called Bioeconomy Strategy, released Thursday, aims to replace fossil
fuels in products like plastics, building materials, chemicals and fibers with
organic materials that regrow, such as trees and crops.
“The bioeconomy holds enormous opportunities for our society, economy and
industry, for our farmers and foresters and small businesses and for our
ecosystem,” EU environment chief Jessika Roswall said on Thursday, in front of a
staged backdrop of bio-based products, including a bathtub made of wood
composite and clothing from the H&M “Conscious” range.
At the center of the strategy is carbon, the fundamental building block of a
wide range of manufactured products, not just energy. Almost all plastic, for
example, is made from carbon, and currently most of that carbon comes from oil
and natural gas.
But fossil fuels have two major drawbacks: they pollute the atmosphere with
planet-warming CO2, and they are mostly imported from outside the EU,
compromising the bloc’s strategic autonomy.
The bioeconomy strategy aims to address both drawbacks by using locally produced
or recycled carbon-rich biomass rather than imported fossil fuels. It proposes
doing this by setting targets in relevant legislation, such as the EU’s
packaging waste laws, helping bioeconomy startups access finance, harmonizing
the regulatory regime and encouraging new biomass supply.
The 23-page strategy is light on legislative or funding promises, mostly
piggybacking on existing laws and funds. Still, it was hailed by industries that
stand to gain from a bigger market for biological materials.
“The forest industry welcomes the Commission’s growth-oriented approach for
bioeconomy,” said Viveka Beckeman, director general of the Swedish Forest
Industries Federation, stressing the need to “boost the use of biomass as a
strategic resource that benefits not only green transition and our joint climate
goals but the overall economic security.”
HOW RENEWABLE IS IT?
But environmentalists worry Brussels may be getting too chainsaw-happy.
Trees don’t grow back at the drop of a hat and pressure on natural ecosystems is
already unsustainably high. Scientific reports show that the amount of carbon
stored in the EU’s forests and soils is decreasing, the bloc’s natural habitats
are in poor condition and biodiversity is being lost at unprecedented rates.
Protecting the bloc’s forests has also fallen out of fashion among EU lawmakers.
The EU’s landmark anti-deforestation law is currently facing a second, year-long
delay after a vote in the European Parliament this week. In October, the
Parliament also voted to scrap a law to monitor the health of Europe’s forests
to reduce paperwork.
Environmentalists warn the bloc may simply not have enough biomass to meet the
increasing demand.
“Instead of setting a strategy that confronts Europe’s excessive demand for
resources, the Commission clings to the illusion that we can simply replace our
current consumption with bio-based inputs, overlooking the serious and immediate
harm this will inflict on people and nature,” said Eva Bille, the European
Environmental Bureau’s (EEB) circular economy head, in a statement.
TOO WOOD TO BE TRUE
Environmental groups want the Commission to prioritize the use of its biological
resources in long-lasting products — like construction — rather than lower-value
or short-lived uses, like single-use packaging or fuel.
A first leak of the proposal, obtained by POLITICO, gave environmental groups
hope. It celebrated new opportunities for sustainable bio-based materials while
also warning that the “sources of primary biomass must be sustainable and the
pressure on ecosystems must be considerably reduced” — to ensure those
opportunities are taken up in the longer term.
It also said the Commission would work on “disincentivising inefficient biomass
combustion” and substituting it with other types of renewable energy.
That rankled industry lobbies. Craig Winneker, communications director of
ethanol lobby ePURE, complained that the document’s language “continues an
unfortunate tradition in some quarters of the Commission of completely ignoring
how sustainable biofuels are produced in Europe,” arguing that the energy is
“actually a co-product along with food, feed, and biogenic CO2.”
Now, those lines pledging to reduce environmental pressures and to
disincentivize inefficient biomass combustion are gone.
“Bioenergy continues to play a role in energy security, particularly where it
uses residues, does not increase water and air pollution, and complements other
renewables,” the final text reads.
“This is a crucial omission, given that the EU’s unsustainable production and
consumption are already massively overshooting ecological boundaries and putting
people, nature and businesses at risk,” said the EEB.
Delara Burkhardt, a member of the European Parliament with the center-left
Socialists and Democrats, said it was “good that the strategy recognizes the
need to source biomass sustainably,” but added the proposal did not address
sufficiency.
“Simply replacing fossil materials with bio-based ones at today’s levels of
consumption risks increasing pressure on ecosystems. That shifts problems rather
than solving them. We need to reduce overall resource use, not just switch
inputs,” she said.
Roswall declined to comment on the previous draft at Thursday’s press
conference.
“I think that we need to increase the resources that we have, and that is what
this strategy is trying to do,” she said.
LONDON — The wait is finally over. After weeks of briefings, speculation, and
U-turns, Chancellor Rachel Reeves has set out her final tax and spending plans
for the year ahead.
As expected, there is plenty for policy wonks to chew over. To make your lives
easier, we’ve digested the headline budget announcements on energy, financial
services, tech, and trade, and dug deep into the documents for things you might
have missed.
ENERGY
The government really wants to bring down bills: Rachel Reeves promised it would
be a cost-of-living budget, and surprised no one with a big pledge on families’
sky-high energy bills. She unveiled reforms which, the Treasury claims, will cut
bills by £150 a year — by scrapping one green scheme currently paid for through
bills (the Energy Company Obligation) and moving most of another into general
taxation (the Renewables Obligation). The problem is, the changes will kick in
next year at the same time bills are set to rise anyway. So will voters actually
notice?
The North Sea hasn’t escaped its taxes: Fossil fuel lobbyists were desperate to
see a cut in the so-called Windfall Tax, which, oil and gas firms say, limits
investment and jobs in the North Sea. But Rachel Reeves ultimately decided to
keep the tax in place until 2030 (even if North Sea firms did get a sop through
rules announced today, which will allow them to explore for new oil and gas in
areas linked to existing, licensed sites.) Fossil fuel lobbyists, Offshore
Energies UK, were very unimpressed. “The government was warned of the dangers of
inaction. They must now own the consequences and reconsider,” it said.
FINANCIAL SERVICES
Pension tax changes won’t arrive for some time: The widely expected cut in tax
breaks for pension salary sacrifice is set to go ahead, but it will be
implemented far later than thought. The thresholds for exemption from national
insurance taxes on salary sacrifice contributions will be lowered from £60,000
to £2,000 in April 2029, likely to improve forecasts for deficit cuts in the
later years of the OBR’s forecasts.
The OBR has a markets warning: The U.K.’s fiscal watchdog warned that the
price-to-earnings ratio among U.S. equities is reminiscent of the dotcom bubble
and post-pandemic rally in 2021, which were both followed by significant market
crashes. The OBR estimated a global stock market collapse could cause a £121
billion hike in U.K. government debt by 2030 and slash U.K. growth by 0.6
percent in 2027-28. Even if the U.K. managed to stay isolated from the equity
collapse, the OBR reckons the government would still incur £61 billion in Public
Sector Net Financial Liabilities.
Banks back British investments: British banks and investment houses have signed
an agreement with the Treasury to create “invest in Britain” hubs to boost
retail investment in U.K. stocks, a plan revealed by POLITICO last week. Reeves
also finally tabled a cut to the tax-free cash ISA allowance: £12,000 from
spring 2027 (the amount and timings also revealed by POLITICO last week), down
from £20,000, with £8,000 slated for investments only. Over-65s will keep the
full tax-free subscription amount. Also hidden in the documents was an upcoming
consultation to replace the lifetime ISA with a “new, simpler ISA product to
support first-time buyers to buy a home.”
No bank tax: Banks managed to dodge a hike in their taxes this time, despite
calls from the IPPR for a windfall-style tax that could have raised £8 billion.
The suggestions (which also came from inside the Labour Party) were met with an
intense lobbying effort from the banks, both publicly and privately. By the eve
of the budget, City figures told POLITICO they were confident taxes wouldn’t be
raised, citing the high rate of tax they already pay and Reeves’ commitment to
pushing for growth through the financial services industry.
TECH
‘Start, scale, stay’ is the new mantra: Startup founders and investors were in
panic mode ahead of the budget over rumored plans for an “exit tax” on wealthy
individuals moving abroad, but instead were handed several wins on Wednesday,
with Reeves saying her aim was to “make Britain the best place in the world to
start up, to scale up and to stay.” She announced an increase in limits for the
Enterprise Manage Scheme, which incentivizes granting employees share options,
and an increase to Venture Capital Trust (VCT) and Enterprise Investment Scheme
(EIS) thresholds to facilitate investment in growing startups. A further call
for evidence will also consider “how our tax system can better back
entrepreneurs,” Reeves announced. The government will also consider banning
non-compete clauses — another long-standing request from startups.
Big Tech will still have to cough up: A long-standing commitment to review a
Digital Services Tax on tech giants was quietly published alongside the budget,
confirming it will remain in place despite pressure from the Trump
administration.
The government will ‘Buy British’ on AI: Most of the government’s AI
announcements came ahead of the budget — including plans for two new “AI Growth
Zones” in Wales, an expansion of publicly owned compute infrastructure — meaning
the only new announcements on the day were a relatively minor “digital adoption
package” and a commitment to overhaul procurement processes to benefit
innovative tech firms. But the real point of interest on AI came in the OBR’s
productivity forecasts, which said that despite the furor over AI, the
technology’s impacts on productivity would be smaller than previous waves of
technology, providing just a 0.2 percentage point boost by 2030.
The government insists digital ID will ultimately lead to cost savings. | Andrea
Domeniconi/Getty Images
OBR delivers a blow to digital ID: The OBR threw up another curveball,
estimating the cost of the government’s digital ID scheme at a whopping £1.8
billion over the next three years and calling out the government for making “no
explicit provision” for the expense. The government insists digital ID will
ultimately lead to cost savings — but “no specific savings have yet been
identified,” the OBR added.
TRADE
Shein and Temu face new fees: In a move targeted at online retailers like Shein
and Temu, the government launched a consultation on scrapping the de minimis
customs loophole, which exempts shipments worth less than £135 from import
duties. These changes will take effect from March 2029 “at the latest,”
according to a consultation document. Businesses are being consulted on how the
tariff should be applied, what data to collect, whether to apply an additional
administration fee, as well as potential changes to VAT collection. Reeves said
the plans would “support a level-playing field in retail” by stopping online
firms from “undercutting our High Street businesses.”
Northern Irish traders get extra support: Also confirmed in the budget is £16.6
million over three years to create a “one-stop shop” support service to help
firms in Northern Ireland navigate post-Brexit trading rules. The government
said the funding would “unlock opportunities” for trading across the U.K.
internal market and encourage Northern Ireland to take advantage of access to EU
markets.
There’s a big question mark over drug spending: Conspicuously absent was any
mention of NHS drug spending, despite U.K. proposals to raise the
cost-effectiveness threshold for new drugs by 25 percent as part of trade
negotiations with the U.S., suggesting a deal has not yet been finalized. The
lack of funding was noted as a potential risk to health spending in the Office
for Budget Responsibility’s Economic and Fiscal Outlook, which was leaked ahead
of the budget.
LONDON — Ministers must act now to address an “emerging risk to gas supply
security,” the government’s official independent energy advisers have warned.
The government must make plans to avert a threat to future gas supplies, the
National Energy System Operator (NESO) said.
While the advisers say the conditions creating a gas supply crisis are
unlikely, any shortage would have a severe impact on the country.
In its first annual assessment of Britain’s gas security, expected to be
released later today but seen by POLITICO, the NESO said diminishing reserves of
gas in the North Sea and competition for imports are creating new energy
security risks, even as the country’s decarbonization push reduces overall
demand for the fossil fuel.
Britain is projected to have sufficient gas supplies for normal weather
scenarios by winter 2030/31, but in the event of severe cold weather and an
outage affecting key infrastructure, supply would fall well short of demand,
NESO projects.
The scenario in the report involves what the NESO calls the “unlikely event”
of a one-in-20-year cold spell lasting 11 days alongside the loss of vital
infrastructure.
If this were to occur, the consequences of a shortfall in gas supply could be
dire.
It could trigger emergency measures including cutting off gas from factories,
power stations, and — in extreme scenarios — homes as well. It could take weeks
or months to return the country to normal.
The vast majority of homes still use gas boilers for heating.
VULNERABILITY
Informed by the NESO’s findings, ministers have published a consultation setting
out a range of options for shoring up gas security.
It comes amid growing concern in Whitehall about the U.K.’s vulnerability to gas
supply disruptions. Russia is actively mapping key offshore infrastructure like
gas pipelines and ministers have warned it has the capability to “damage or
destroy infrastructure in deepwater,” in the event that tensions over Ukraine
spill over into a wider European conflict.
While Britain has long enjoyed a secure flow of domestically-produced gas from
the North Sea — which still supplies more than a third of the fuel — NESO’s
report says gas fields are experiencing “rapid decline.” The amount available to
meet demand in Britain falls to “12 to 13 percent winter-on-winter until
2035,” it says.
That will leave the U.K. ever more dependent on imports, via pipeline from
Norway and increasingly via ship-borne liquefied natural gas (LNG) from the U.S.
— and Britain will be competing with other countries for the supply of both.
The report projects that during peak demand periods in the 2030s, the Britain’s
import dependency will be as high as 90 percent or more.
Overall, gas demand will be lower in the 2030s because of the shift to renewable
electricity and electric heating, but demand will remain relatively high on
very cold days, and when there is little wind to power offshore turbines,
requiring gas power stations to be deployed, the report says.
“This presents emerging risks that we will need to understand to ensure reliable
supplies are maintained for consumers,” it adds.
Reducing demand for gas by decarbonizing will be key, the report says, and risks
are higher in scenarios where the country slows down its shift away from gas.
But decarbonization alone will not be enough to ensure the U.K. would meet the
so-called “N-1 test” — a sufficient supply of gas even if the “single largest
piece” of gas infrastructure fails — during a prolonged cold spell in winter
2030/31. In that scenario, “peak day demand” is projected to reach 461 million
cubic meters (mcm), but supply would fall to 385 mcm, resulting in a supply
deficit of 76 mcm, a shortfall of around 16 percent of what is needed to power
the country on that day.
That means ministers should start considering alternative options now, including
the construction of new infrastructure like storage facilities, liquefied
natural gas (LNG) import terminals, or new onshore pipelines to ensure more gas
can get from LNG import sites to the rest of the country. The government
consultation will look at these and other options.
The critical piece of gas infrastructure considered under the N-1 test is
not identified for security reasons, but is likely to be a major import pipeline
from Norway or an LNG terminal. The report says that even “smaller losses …
elsewhere in the gas supply system” could threaten gas security in extreme cold
weather.
GAS SECURITY ‘PARAMOUNT’
The findings will likely be seized on by the oil and gas industry to argue for a
more liberal licensing and tax regime in the North Sea, on a day when the
government announced its backing for more fossil fuel production in areas
already licensed for exploration.
But such measures are unlikely to be a silver bullet. The report
says: “Exploration of new fields is unlikely to deliver material new capacity
within the required period.”
Deborah Petterson, NESO’s director of resilience and emergency management, said
that gas supply would be “sufficient to meet demand under normal weather
conditions.”
“We have, however, identified an emerging risk to gas supply security where
decarbonization is slowest or in the unlikely event of the loss of the single
largest piece of gas infrastructure on the system.
“By conducting this analysis, we are able to identify emerging risks early and,
crucially, in time for mitigations to be put in place,” she added.
A spokesperson for the Department of Energy Security and Net Zero said ministers
were “working with industry to ensure the gas system is fit for the future,
including maintaining security of supply — which is paramount.”
“Gas will continue to play a key role in our energy system as we transition to
clean, more secure, homegrown energy,” they added. “This report sets out clearly
that decarbonization is the best route to energy security — helping us reduce
demand for gas while getting us off the rollercoaster of volatile fossil fuel
markets.”
Glenn Bryn-Jacobsen, director of energy resilience and systems at gas network
operator National Gas Transmission, said in the short-term, Britain’s gas supply
outlook was “robust” but that “looking ahead, we recognise the potential
longer-term challenges.”
“Gas remains a critical component of Britain’s energy security — keeping homes
warm, powering industry, and supporting electricity generation during periods of
peak demand and low renewable output,” he added.
“In considering potential solutions, it is essential to look at both the gas
supply landscape and the investment required in network infrastructure,”
he said.
LONDON — U.K. Energy Secretary Ed Miliband was on the world stage last week
demanding high-polluting fossil fuels are phased out of global energy systems.
“This is an issue that cannot be ignored,” he told the COP climate summit in
Brazil.
Yet this week could see his own government water down commitments to phase out
fossil fuels.
Insiders say a drawn-out fight over the future of drilling in the U.K.’s
Scottish oil and gas heartlands is finally reaching its conclusion.
It is a row which has split the governing Labour Party, pitted Miliband against
the all-powerful Treasury, and will, some of Labour’s own MPs fear, undermine
the government’s climate credentials and expose the party to even more political
pain.
“If a progressive government with a big majority, in the country that started
the Industrial Revolution, can’t hold firm on new fossil fuel drilling,” worried
one Labour MP, “how can we expect developing countries to do what’s needed to
tackle climate change?”
The MP, along with other officials and experts in this piece, was granted
anonymity to give a frank view on sensitive political planning.
The decisions follow months of full-throated lobbying by fossil fuel companies,
who argue tough action against high-polluting oil and gas firms will hit jobs
and derail the wider economy — but also by green campaigners, desperate to hold
Labour to its promises to make the U.K. a global climate leader.
And there is a growing risk for ministers that, as the government searches for a
compromise to satisfy the party and balance fiscal demands with net-zero
ambitions, it will land on a solution which pleases no one at all.
LICENSES, TAXES, ELECTIONS
Two government figures and three figures from industry told POLITICO they expect
minsters to announce a decision on North Sea licenses on Wednesday, to coincide
with the Budget.
Labour swept to power last year on a promise to ban new oil and gas exploration
licenses in the declining basin, as well as maintaining taxes on high polluters
in the North Sea.
But there is likely to be a “pragmatic” shift on North Sea policy, one of the
government figures said. Officials are looking at allowing oil and exploration
on existing fields (so-called “tiebacks”) and potentially loosening rules on
investment relief, they said.
Fossil fuel lobbyists argue that, without this sort of help, thousands of jobs
and billions in investment are at risk.
“There is a sense that the industry are not crying wolf this time,” the same
government figure said.
The tax is currently set to remain until 2030, but Chancellor Rachel Reeves is
considering scrapping it earlier, in a bid to drive the U.K.’s stalling
economy. | Pool photo by Leon Neal via Getty Images
They added that ministers will likely be making decisions with Scottish
elections in May firmly in mind — conscious that the future of the oil and gas
sector is a priority for many Scottish voters already worried about the decline
of the North Sea economy, embodied in the closure of Grangemouth refinery.
Approving tiebacks would allow Miliband to say he has stuck to his election
pledge while still expanding opportunities for oil and gas producers.
The Treasury is also due to decide the future of the Windfall Tax on oil and gas
companies before the end of the year — a levy on profits hated by the industry
but used to fund Miliband’s rush to move the U.K. to a cleaner energy system.
The tax is currently set to remain until 2030, but Chancellor Rachel Reeves is
considering scrapping it earlier, in a bid to drive the U.K.’s stalling
economy.
Lobby group Offshore Energies UK (OEUK) claims the country could enjoy a £40
billion economic boost if the Windfall Tax was ditched as soon as next year.
A fourth industry figure said a decision on whether to approve drilling on the
controversial Rosebank gas field — which already holds a license — could also
come this week, although the field’s developers think it is more likely in the
new year.
Officials from Miliband’s Department for Energy Security and Net Zero summoned
OEUK for a meeting Friday in Whitehall, according to two of the industry
figures.
‘POLITICALLY STUPID’
The idea of softening fossil fuel policy is alarming some on Labour’s
backbenches.
Referencing the pledge not to allow new drilling licenses, Barry Gardiner, an
environment minister under Tony Blair and now a member
of parliament’s Environmental Audit Committee, said: “It is a commitment that I
am sure the chancellor will wish to honor, given that yet another broken promise
or U-turn would be as politically stupid as it would be environmentally
illiterate.”
The pledge, he said, had “sat happily with the U.K’s commitment at the last COP
to phase out fossil fuels.”
Fellow Labour MP Clive Lewis said any watering-down would be a “mistake.”
“It would signal that the government is more focused on reassuring fossil-fuel
interests than giving the public a credible plan for energy security and climate
stability. Voters aren’t blind to that,” he said.
But their views are not shared across the party.
Mary Glindon, a Labour MP in the former industrial city of Newcastle, hosted
OEUK in parliament earlier this month.
“The truth is that our once proud North Sea energy industry is shedding about
one thousand jobs a month. … Without renewed investment, I fear for our
communities and the prosperity of our young people,” she told an audience of
MPs, lobbyists and business leaders.
OEUK, in a letter to Prime Minister Keir Starmer this September, seen by
POLITICO, said that “without fiscal reform, changes to the regulatory framework
and licensing will be insufficient on their own to transform the outlook for the
industry.” | Pool Photo by Henry Nicholls via Getty Images
Policy in the North Sea must show workers “that we are on their side,” Scottish
Labour MP Torcuil Crichton told POLITICO earlier this year.
Gary Smith, general secretary of GMB Union — traditionally a champion of Labour
which represents thousands of oil and gas workers — told the same OEUK event:
“This is a crucial moment in terms of the Budget, and if the government gets
this wrong on the future that the North Sea, it will be a strategic, long-term
disaster for this country.”
A DESNZ spokesperson said: “We will implement our manifesto position in full to
not issue new licences to explore new oil and gas fields.
“Our priority is to deliver a fair, orderly and prosperous transition in line
with our climate and legal obligations, with the biggest ever investment in
offshore wind and first of a kind carbon capture and storage clusters.”
PRESSURE ALL AROUND
Even if the government is willing to upset its greenest backbenchers, it still
won’t be enough to win round the biggest backers of oil and gas.
OEUK, in a letter to Prime Minister Keir Starmer this September, seen by
POLITICO, said that “without fiscal reform, changes to the regulatory framework
and licensing will be insufficient on their own to transform the outlook for the
industry.”
Robin Allan, chairman of the lobby group BRINDEX, also argues potential changes
to the industry’s fiscal and licensing regimes would do little to revive the
industry.
“The tweaking and tinkering of existing policies will not make the North Sea an
investable basin,” he said. To restore business confidence, he
argued, “wholesale reform is needed.”
There is nervousness inside Labour that attempts to navigate these pressures
will leave the government, already struggling with voters, even more
vulnerable.
The Green Party, helmed by media-savvy new leader Zack Polanski, is rising in
the polls.
Labour would be “wriggling out” of their climate commitments if they pushed
ahead with tiebacks and Windfall Tax reforms, argued Green MP and the party’s
Westminster leader Ellie Chowns.
It would be “politically mad to allow new drilling licences when the Greens are
surging in the polls,” argued the same Labour MP quoted at the top of this
article.
“The growing support for the [Green Party] shows that people want honesty,
consistency and a transition [to net zero] that protects workers and communities
rather than corporate profits,” said Clive Lewis.
And the pressure would not just come from the left.
Nigel Farage’s poll-topping Reform UK has promised to let oil and gas companies
drill the North Sea basin until it is dry.
The Conservatives, too, are staking out a much stronger line backing fossil
fuels.
“Anything short of an overturn of the [Windfall Tax] and … a complete overturn
of the [licensing] ban is going to fall far short of what the industry needs at
this time,” said Tory Shadow Energy Minister Andrew Bowie.
Think tanks close to Miliband’s own left flank of politics are getting restless.
Softening the regime in the North Sea might appear to have political dividends
by heading off the Tories and Reform, said Alex Chapman, senior economist at the
New Economics Foundation, but Labour should resist it. “I think it would be a
terrible, terrible decision,” he said.
LONDON — European officials congratulated themselves on Monday after talks in
Geneva suggested Donald Trump will listen to their concerns about forcing a bad
peace deal on Ukraine.
“While work remains to be done, there is now a solid basis for moving forward,”
European Commission President Ursula von der Leyen said as she hailed “good
progress” resulting from “a strong European presence” at the talks.
It was certainly “progress” for top advisers from the EU and the U.K. to be
invited to join Sunday’s meeting in Switzerland after they were cut out of
America’s original 28-point plan, which they feared was so biased it would
embolden Russia to launch further attacks.
But the celebration was short-lived.
On Monday evening, Russia rejected the updated text of the deal, which had been
redrafted with input from Ukraine and its allies during the lengthy talks with
U.S. Secretary of State Marco Rubio.
The risk for Ukraine now is that Vladimir Putin will drag the American president
back to his starting position: A 28-point ceasefire agreement that triggered a
meltdown among officials in Brussels because it would force Kyiv to give up
swathes of land to Moscow, abandon hope of ever joining NATO, and cut the size
of its army to 600,000 troops from nearly 1 million.
If that happens, Ukrainian President Volodymyr Zelenskyy will face a miserable
choice: Either take the offer cooked up by Trump and Putin, or gamble his
country’s future in the hope of one day getting enough help from his European
friends.
These are the same friends who, after nearly four years of war, won’t send him
their troops, or the weapons he wants, or even raid Russia’s frozen assets from
their banks to help him buy supplies of his own.
UNWILLING TO FIGHT
For some U.S. Republicans, Europeans who object to Trump’s deal and the
compromises it will require are deluding themselves. “What is the alternative?”
Greg Swenson, chairman of Republicans Overseas in the U.K., asked POLITICO.
“You can talk a good game, you can attend all these diplomatic meetings and you
can send all your best people to Geneva, but the only way to beat Putin is to
fight — and none of them are willing to do that,” Swenson said. “So it’s all
talk. It all sounds great when you talk about democracy and defending Ukraine,
but they’re just not willing to do it.”
European politicians and officials would disagree, pointing to the huge sums of
money and weapons their governments have sent to Kyiv since the war started
nearly four years ago, as well as to the economic challenge of cutting back on
Russian trade, especially imported fossil fuels.
Since the U.S. pulled back on its support, Europe has conspicuously moved to
fill the gap.
But in truth, Trump’s original proposal panicked officials and diplomats in
Brussels and beyond because they knew Zelenskyy could not rely on Europe to do
enough to help Ukraine on its own.
European Commission President Ursula von der Leyen said as she hailed “good
progress” resulting from “a strong European presence” at the talks. | Nicolas
Economou/Getty Images
A month ago, EU leaders turned up for a summit in Brussels bullishly predicting
they would secure a landmark agreement on using €140 billion in frozen Russian
assets as a “reparations loan” to put Kyiv on a secure financial footing for at
least the next two years.
But in a major diplomatic and political blunder, the plan has fallen apart amid
unexpected objections from Belgium.
NO BREAKTHROUGH ON ASSETS
Talks are now intensifying among officials in the European Commission and EU
governments, especially the Belgians, but there has as yet been no breakthrough,
according to multiple officials granted anonymity, like others, to speak
candidly about sensitive matters.
Some diplomats hope that the pressure from Trump will force Belgium and those
other EU countries with reservations on the frozen assets plan to get on board.
One idea that hasn’t been ruled out is to make use of some of the assets
alongside joint EU bonds or potentially direct financial contributions from EU
governments, officials said.
But some EU diplomats fear the whole idea of a reparations loan to Ukraine using
the frozen assets will crumble if the final peace blueprint contains a reference
to using those same funds.
The initial blueprint suggested using the assets in an investment drive in
Ukraine, with half the proceeds going to the U.S., a concept Europeans rejected
as “scandalous.” Yet once sanctions on Russia are eventually lifted, Euroclear —
the Belgium-based financial depository holding the immobilized assets — could
end up having to wire the money back to Moscow.
This could leave EU taxpayers on the hook to repay the cash, a scenario that is
likely to weigh heavily on EU governments as they consider whether to support
the loan idea in the weeks ahead.
Then there’s the question of keeping the peace. Earlier this year, French
President Emmanuel Macron and British Prime Minister Keir Starmer led efforts to
assemble support for an international peacekeeping force from volunteer
countries who would form a “coalition of the willing.” A year earlier, Macron
even floated the idea of “boots on the ground” before the conflict is over.
He no longer talks like that.
In a sign of how difficult any conversation on sending troops to Ukraine would
be in France, an impassioned call last week from France’s new top general,
Fabien Mandon, for mayors to prepare citizens for a possible war with Russia
sparked an uproar, and drew condemnation from major political parties. Mandon
had warned that if France “is not prepared to accept losing its children, to
suffer economically because priorities will be given to defense production, then
we are at risk.”
Macron tried to tamp down the controversy and said Mandon’s words had been taken
out of context.
French President Emmanuel Macron and British Prime Minister Keir Starmer led
efforts to assemble support for an international peacekeeping force. | Leon
Neal/Getty Images
In Germany, Foreign Minister Johann Wadephul said Berlin was “already making a
special contribution to the eastern flank” by stationing a combat-ready brigade
in Lithuania. “The entire Baltic region is a key area on which the Bundeswehr
will focus. I think that this is also sufficient and far-reaching support for
Ukraine.”
The Ukrainians would have wanted a deeper commitment on their soil, but Western
Europeans are wary of incurring high casualties by sending soldiers to the front
lines.
“At least Trump is honest about it,” Swenson said. “We could beat Russia. We
would beat them, I would think, quickly, assuming there was no nuclear weapons.”
“We would beat Russia, but a lot of people would die.”
Esther Webber, Gabriel Gavin and Nicholas Vinocur contributed reporting.
TOURNAI, Belgium — Back in 2016, a freak storm destroyed the entire strawberry
crop on Hugues Falys’ farm in the province of Hainaut in west Belgium.
It was one of a long string of unusual natural calamities that have ravaged his
farm, and which he says are becoming more frequent because of climate change.
Falys now wants those responsible for the climate crisis to pay him for the
damage done — and he’s chosen as his target one of the world’s biggest oil
companies: TotalEnergies.
In a packed courtroom in the local town of Tournai, backed by a group of NGOs
and a team of lawyers, Falys last week made his case to the judges that the
French fossil fuel giant should be held responsible for the climate disasters
that have decimated his yields.
It’s likely to be a tricky case to make. TotalEnergies, which has yet to present
its side of the case in court, told POLITICO in a statement that making a single
producer responsible for the collective impact of centuries of fossil fuel use
“makes no sense.”
But the stakes are undeniably high: If Falys is successful, it could create a
massive legal precedent and open a floodgate for similar litigation against
other fossil fuel companies across Europe and beyond.
“It’s a historic day,” Falys told a crowd outside the courtroom. “The courts
could force multinationals to change their practices.”
A TOUGH ROW TO HOE
While burning fossil fuels is almost universally accepted as the chief cause of
global warming, the impact is cumulative and global, the responsibility of
innumerable groups over more than two centuries. Pinning the blame on one
company — even one as huge as TotalEnergies, which emits as much CO2 every year
as the whole of the U.K. combined — is difficult, and most legal attempts to do
so have failed.
Citing these arguments, TotalEnergies denies it’s responsible for worsening the
droughts and storms that Falys has experienced on his farm in recent years.
The case is part of a broader movement of strategic litigation that aims to test
the courts and their ability to enforce changes on the oil and gas industry.
More than 2,900 climate litigation cases have been filed globally to date.
“It’s the first time that a court, at least in Belgium, can recognize the legal
responsibility, the accountability of one of those carbon polluters in the
climate damages that citizens, and also farmers like Hugues, are suffering and
have already suffered in the previous decade,” Joeri Thijs, a spokesperson for
Greenpeace Belgium, told POLITICO in front of the courtroom.
MAKING HISTORY
Previous attempts to pin the effects of climate change on a single emitter have
mostly failed, like when a Peruvian farmer sued German energy company RWE
arguing its emissions contributed to melting glaciers putting his village at
risk of flooding.
But Thijs said that “the legal context internationally has changed over the past
year” and pointed to the recent “game-changer” legal opinion of the
International Court of Justice, which establishes the obligations of countries
in the fight against climate change.
TotalEnergies, which has yet to present its side of the case in court. |
Gregoire Campione/Getty Images
“There have been several … opinions that clearly give this accountability to
companies and to governments; and so we really hope that the judge will also
take this into account in his judgment,” he said.
Because “there are various actors who maintain this status quo of a fossil-based
economy … it is important that there are different lawsuits in different parts
of the world, for different victims, against different companies,” said Matthias
Petel, a member of the environment committee of the Human Rights League, an NGO
that is also one of the plaintiffs in the case.
Falys’ lawsuit is “building on the successes” of recent cases like the one
pitting Friends of the Earth Netherlands against oil giant Shell, he told
POLITICO.
But it’s also trying to go “one step further” by not only looking backward at
the historical contribution of private actors to climate change to seek
financial compensation, he explained, but also looking forward to force these
companies to change their investment policies and align them with the goal of
net-zero emissions by 2050.
“We are not just asking them to compensate the victim, we are asking them to
transform their entire investment model in the years to come,” Petel said.
DIRECT IMPACTS
In recent years, Falys, who has been a cattle farmer for more than 35 years, has
had to put up with more frequent extreme weather events.
The 2016 storm that decimated his strawberry crop also destroyed most of his
potatoes. In 2018, 2020 and 2022, heat waves and droughts affected his yields
and his cows, preventing him from harvesting enough fodder for his animals and
forcing him to buy feed from elsewhere.
These events also started affecting his mental health on top of his finances, he
told POLITICO.
“I have experienced climate change first-hand,” he said. “It impacted my farm,
but also my everyday life and even my morale.”
Falys says he’s tried to adapt to the changing climate. He transitioned to
organic farming, stopped using chemical pesticides and fertilizers on his farm,
and even had to reduce the size of his herd to keep it sustainable.
Yet he feels that his efforts are being “undermined by the fact that carbon
majors like TotalEnergies continue to explore for new [fossil fuel] fields,
further increasing their harmful impact on the climate.”
FIVE FAULTS
Falys’ lawyers spent more than six hours last Wednesday quoting scientific
reports and climate studies aimed at showing the judges the direct link between
TotalEnergies’ fossil fuel production, the greenhouse gas emissions resulting
from their use, and their contribution to climate change and the extreme weather
events that hit Falys’ farm.
They want TotalEnergies to pay reparations for the damages Falys suffered. But
they’re also asking the court to order the company to stop investing in new
fossil fuel projects, to drastically reduce its emissions, and to adopt a
transition plan that is in line with the 2015 Paris climate agreement.
Falys’ lawsuit is “building on the successes” of recent cases like the one
pitting Friends of the Earth Netherlands against oil giant Shell, he told
POLITICO. | Klaudia Radecka/Getty Images
TotalEnergies’ culpability derives from five main faults, the lawyers argued.
They claimed the French oil giant continued to exploit fossil fuels despite
knowing the impact of their related emissions on climate change; it fabricated
doubt about scientific findings establishing this connection; it lobbied against
stricter measures to tackle global warming; it adopted a transition strategy
that is not aligned with the goals of the Paris agreement; and it engaged in
greenwashing, misleading its customers when promoting its activities in Belgium.
“Every ton [of CO2 emissions] counts, every fraction of warming matters” to stop
climate change, the lawyers hammered all day on Wednesday.
“Imposing these orders would have direct impacts on alleviating Mr. Falys’
climate anxiety,” lawyer Marie Doutrepont told the court, urging the judges “to
be brave,” follow through on their responsibilities to protect human rights, and
ensure that if polluters don’t want to change their practices voluntarily, “one
must force them to.”
TOTAL’S RESPONSE
But the French oil major retorted that Falys’ action “is not legitimate” and has
“no legal basis.”
In a statement shared with POLITICO, TotalEnergies said that trying to “make a
single, long-standing oil and gas producer (which accounts for just under 2
percent of the oil and gas sector and is not active in coal) bear a
responsibility that would be associated with the way in which the European and
global energy system has been built over more than a century … makes no sense.”
Because climate change is a global issue and multiple actors contribute to it,
TotalEnergies cannot hold individual responsibility for it, the fossil fuel
giant argues.
It also said that the company is reducing its emissions and investing in
renewable energy, and that targeted, sector-specific regulations would be a more
appropriate way to advance the energy transition rather than legal action.
The French company challenges the assertion that it committed any faults, saying
its activities “are perfectly lawful” and that the firm “strictly complies with
the applicable national and European regulations in this area.”
TotalEnergies’ legal counsel will have six hours to present their arguments
during a second round of hearings on Nov. 26 in Tournai.
The court is expected to rule in the first half of next year.
BELÉM, Brazil — The European Union came into this year’s COP30 summit hoping to
exorcise some of its climate demons. It did, to a degree — then found new ones.
After a year of infighting that ended in a last-minute deal on new
pollution-cutting targets just before the annual U.N. conference began, the EU
sought to make the case for greater global efforts to fight climate change.
But in Belém, the Amazonian host city of COP30, the 27-country bloc was
confronted with a stark geopolitical reality. In the absence of the United
States, which at past conferences worked with the Europeans to push for more
climate action, the EU struggled to fight against the combined weight of China,
India, Saudi Arabia and other rising economic powers.
“We’re living through complicated geopolitical times. So there is intrinsic
value, no matter how difficult, to seek to come together,” EU climate chief
Wopke Hoekstra told reporters after the bloc decided not to oppose the final
conference agreement.
“We’re not going to hide the fact we would have preferred to have more,” he
said. “And yet the world is what it is, the conference is what it is, and we do
think this on balance is a step in the right direction.”
The end result was not what the EU had fought for — though the bloc eked out a
handful of concessions after threatening to veto the deal on Friday.
To appease the EU, as well as a small group of other holdouts such as the United
Kingdom and Colombia, the Brazilian presidency of COP30 tweaked its draft deal
to affirm a previous agreement on transitioning away from fossil fuels and
offered to start a discussion on how to achieve that deal over the next year.
A European walkout was on the cards until just after dawn on the final morning.
“It was on the edge for us at times during the night — and for the EU — because
we just thought actually we’ve got to be able to look people in the eye,” said
U.K. Energy Secretary Ed Miliband.
Developed countries also won changes to a proposal to triple financing for
poorer countries to prepare for climate disasters, which will now be provided
later than developing nations wanted and draw funds from sources beyond rich
countries’ budgets.
Still, the Europeans had wanted to leave Brazil with a much larger signal,
laying out a clear path away from fossil fuels.
But they failed to build an alliance strong enough to counter the Saudi-led
opposition — an effort hampered by geopolitical headwinds as well as internal
divisions that had followed the EU from Brussels all the way to Belém.
LINGERING DIVISIONS
Divisions over climate change that had dogged the EU throughout the year did
affect the bloc’s negotiations. Until Friday morning, hours before the
conference was scheduled to end, the EU was forced to take a back seat each time
countries from across the globe came together to urge greater ambition.
A European walkout was on the cards until just after dawn on the final morning.
“It was on the edge for us at times during the night — and for the EU,”
confirmed U.K. Energy Secretary Ed Miliband. | Pablo Porciuncula/AFP via Getty
Images
On Tuesday, the EU was absent from an 82-country call spearheaded by Colombia to
draw up a “roadmap” to deliver on the earlier agreement to transition away from
fossil fuels.
Many of the bloc’s governments individually backed the move, but two diplomats
said Italy and Poland could not support the agreement at the time, leaving the
EU as a whole unable to throw its weight behind the call. The bloc eventually
proposed its own version.
Similarly, the EU was not among the signatories on Thursday when a coalition of
29 countries sent a letter to the Brazilian COP30 presidency to complain that a
draft proposal in the works did not contain a reference to the roadmap or other
efforts.
The majority of the bloc’s governments backed the missive, but 10 EU countries —
including Greece, Hungary, Italy, Poland and Slovakia — did not.
The split broadly reflected the divisions that had plagued the EU’s climate
politics for much of this year.
The bloc spent the past few months trying to agree on a pair of new targets to
reduce emissions, a fractious process that met with resistance from countries
concerned about the impact of green efforts on their domestic industries.
The 27 governments eventually struck a deal on the eve of COP30, setting new
goals that were softer than initially envisaged but nevertheless rank among the
world’s most ambitious.
Yet by that point, it was far too late for the EU to leverage its targets and
pressure other big emitters, such as China, into stepping up their efforts.
(Beijing’s envoy suggested in an interview with POLITICO that if the bloc wanted
to be a climate leader, the EU needed to sort out its internal divisions.)
“They used to be more active, more vocal. It feels like their pendulum swing at
home is having an impact,” one Latin American negotiator said. “They keep their
positions, no backtracking, but it doesn’t feel as strong anymore. Like the
passion is gone.”
ISOLATED IN BELÉM
Yet when all countries were presented with the Brazilian presidency’s draft deal
on Friday morning, the EU decided to take a stand.
Three European diplomats said the entire bloc was united in fury at the text —
with everyone from the most climate-ambitious nations such as Denmark to
laggards such as Poland fuming about weak language on cutting emissions and
crossed red lines on finance.
All ministers were asked to get on the phone to their capitals to request
permission to veto a deal if necessary, four diplomats said. Hoekstra told a
gathering convened by the Brazilians: “Under no circumstances are we going to
accept this.”
COP30 President Andre Correa do Lago. To appease the EU, the U.K., Colombia and
others, the Brazilian presidency of COP30 tweaked its draft deal on fossil
fuels. | Pablo Porciuncula/AFP via Getty Images
“We stayed united until the end, despite the fact that of course we all had
differences in our assessment of the overall situation here,” said Monique
Barbut, France’s ecological transition minister.
The strength of the EU delegation’s message, however, was somewhat undercut by
their own leader: European Commission President Ursula von der Leyen. Speaking
around the same time at the G20 in South Africa, von der Leyen asserted: “We are
not fighting fossil fuels, we are fighting the emissions from fossil fuels.”
“She’s a star in undermining her own negotiators during COP,” one EU diplomat
complained.
But the EU also faced a new geopolitical reality in Belém.
German Climate Minister Carsten Schneider on Saturday spoke of a “new world
order” that the EU would need to get used to. “Something has changed, and that
has become very apparent here.”
Throughout the two weeks, European diplomats complained bitterly about the
tactics employed by Saudi Arabia and other major oil producers, which fiercely
opposed any call to tackle fossil fuels.
Riyadh and its allies, they said, were emboldened by Washington’s absence and
constantly took the floor in meetings to derail the talks. Notes from a
closed-door meeting shared with POLITICO also show that Saudi Arabia sought to
bash the bloc for imposing carbon tariffs.
“We faced a very strong petro-industry… which organised a blocking majority here
against any progress,” Schneider said.
The bloc was frustrated about what they saw as Brazil pandering to its BRICS
allies — China, India, South Africa and other emerging economies — in walking
right over the EU’s red lines on providing climate aid and pushing the bloc into
uncomfortable discussions on trade measures.
But they also left feeling abandoned by traditional allies, such as small island
states, that they had counted on to back their push for more climate action. In
the end, the Europeans and a handful of Latin American countries stood alone.
“We need to do some real thinking about what the EU’s role in these global talks
is,” one senior European negotiator said. “We underestimated the BRICS and
overestimated our strength a little bit — and we definitely overestimated the
unity of those we consider our allies.”