Tag - Renewable energy

The EU’s grand new plan to replace fossil fuels with trees
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.
Energy
Agriculture and Food
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Environment
Parliament
Fire disrupts climate talks — and souvenir hunters
BELÉM, Brazil — The fire at the climate summit Thursday not only disrupted global negotiations over rising temperatures, it also halted kitsch collectors. The blaze closed an area of the COP30 venue that hosted pavilions set up by nations from around the world, featuring cultural displays and climate-focused events. For some countries it was a space to spread soft power — sometimes through trinkets. China’s pavilion was a popular attraction. A line on Wednesday snaked past the area featuring two Chinese flags and a sprawling image of cloud-shrouded mountains as visitors waited for souvenirs that included panda headbands and tiny panda plushies. “The pandas are the fever here,” said Ana Lobato, a volunteer from Belém who said she has been collecting pins from various pavilions. Throughout the two-week conference, China also offered hand-held fans to keep delegates cool amid the tropical heat that sometimes overwhelmed the facility’s sputtering air conditioning. Also available were books with the writings and speeches of China’s president, Xi Jinping. The United States doesn’t have a pavilion, reflecting its absence from the talks under President Donald Trump, who is known to display and sell his own merch. The American officials who did come — including California Gov. Gavin Newsom and Rhode Island Sen. Sheldon Whitehouse — spoke at other pavilions. The lack of an American presence in these halls has helped China stand out. Its pavilion was strategically positioned along a main corridor, flanked by Saudi Arabia and Portugal, which would offer wine and port in the evenings. “China is leading where America is failing,” said Rex Emojite Anighoro, an activist from Nigeria. “Where the presidency of Trump has said, ‘No, the world you can go to hell.’ China says, ‘No, you can listen to us. We can be here for you.’ And that’s what they’re trying to demonstrate by giving gifts.” Anighoro, who has been to four climate conferences, said he always goes to the U.S. pavilion — until now. He had picked up a copy of Xi’s book, and said he would have taken one from the U.S. center, “but now I have no option.” The pavilions have long occupied a space in the blue zone at these climate conferences, the area where official delegates, members of the press and registered observers roam the halls. Coffee has been a big draw in past years, and the line at the Australian pavilion for a flat white — an espresso with a line of milky foam — is always long. This year, Australia was awkwardly positioned next to Turkey’s pavilion, which also drew crowds for its strong brew, as the two competed to host COP31. Turkey won out. At the U.K. pavilion, Energy Secretary Ed Miliband promoted its coffee as the summit’s best during a renewable energy event with India earlier this week. Indonesia, across the room from China, held dance performances. Now, that area will be isolated from the rest of the venue, even after negotiations resume over issues such as providing more financial assistance to climate-vulnerable nations and transitioning away from fossil fuels. The fire on Thursday afternoon forced people to evacuate into the streets near the Hangar Convention and Fair Centre of the Amazon. A joint statement from the COP30 presidency and the United Nations said 19 people were treated for smoke inhalation and provided with medical support. The Fire Department deemed the site safe Thursday night and resumed operations. “We appreciate the cooperation, patience, and understanding of all participants,” the statement said. “We still have substantial work ahead, and we trust that delegates will return to the negotiations in a spirit of solidarity and determination to ensure a successful outcome for this COP.” Zack Colman contributed to this report.
Energy
Cooperation
Negotiations
Ports
Americas
Disaster-battered nations seek $120B in adaptation cash
BELÉM, Brazil — A group of countries is calling for a U.N. agreement to triple the amount of money for preventing the impacts of a hotter planet, as climate pollution keeps rising and funding for adaptation falls further behind. The move to increase adaptation funding to $120 billion annually at the COP30 climate talks comes as wealthy nations have cut back international aid and as President Donald Trump moves to withdraw the U.S. from the Paris Agreement, hampering global efforts to inject additional funding into climate actions. Even before Trump took office, nations worldwide had a spotty record of meeting their financial commitments to lower pollution and offer interest-free funding for protective infrastructure, agriculture and ecosystems. “Adaptation must move from vague aspirations to concrete action. It requires strong targets backed by finance, technology transfer and capacity building,” Sierra Leone’s climate and environment minister, Jiwoh Abdulai, told U.N. officials Monday. Sierra Leone is among a group of least-developed countries, small island states and African nations that is trying to boost funding for projects that can protect people, property and crops from storms, drought and extreme heat. They’re also working to agree on a set of metrics that measure the effectiveness of adaptation funding — something that’s been used to promote money for reducing climate pollution for years. Negotiators and officials say adaptation funding is more important as temperatures risk breaching the 1.5-degree-Celsius limit — the most ambitious aim of the Paris Agreement. The call for tripling adaptation money would build on a 2021 commitment by wealthy countries to provide poorer nations with $40 billion in adaptation funding by 2025. A recent United Nations report predicted that goal would not be met. It found that $26 billion in adaptation funding flowed to countries in 2023, a fraction of the $310 billion that the U.N. estimates countries will need each year by 2035. The move unfolding at COP30 comes a year after countries agreed to a vague commitment to boost climate finance from $100 billion to $300 billion annually by 2035 — for reducing pollution and increasing adaptation. Countries say it needs to be clear how much money would go toward adaptation and whether it will be offered as grants or loans, reflecting their concern about mounting debt. Much of the interest-free funding they say they need is expected to flow through multilateral development banks and climate-focused institutions like the Green Climate Fund. “Without an outcome that doesn’t just give us indicators — it also gives us money — everything we’re discussing here is symbolic. We will go back home and nothing tomorrow will change,” said Lina Yassin, an adaptation negotiator from Sudan who’s working with the least-developed country group. Jennifer Morgan, Germany’s former climate envoy, said it is legitimate for the poorest, most vulnerable countries to ask for an agreement on the next round of adaptation funding as the previous goal expires. The challenge will be getting donor countries on board. “It’s really important, especially now, that countries like Japan, Australia, Canada, but also those that are able to do so [contribute],” Morgan said. “It’s about the wealthy Arab nations. It’s about, will China contribute as well?” Finding donors is just one challenge. Another is ensuring that vulnerable countries can access the money quickly. Many have had to wait years for funding under current processes. They’re also pushing for changes to ensure poorer nations aren’t saddled with additional debt. U.K. Energy Secretary Ed Miliband drew attention to those challenges earlier this week. “If we are serious about supporting climate action, serious about supporting adaptation and resilience, the quantums matter, but also quality matters, access matters, the funds actually flowing matters,” he said during a renewable energy event in Belém. For years, vulnerable countries warned they would need to adapt to climate dangers as global efforts to reduce warming pollution failed to gain traction. Now those dangers are here, they say, and more adaptation funding is needed. They’re pushing for less paperwork and fewer reporting requirements, as well as faster, more efficient procedures to approve funding requests. Evans Njewa from Malawi, who chairs the 44-member Least Developed Country Group said countries have already agreed to provide adaptation money. Now they need to deliver. “If you need the resources now, you shouldn’t go through so much paperwork, procedures,” he said. Karl Mathiesen contributed to this report.
Energy
Agriculture
Environment
Technology
Debt
Rachel Reeves wants to slash energy bills. Here’s how.
LONDON — Rachel Reeves needs at least one good news story to sell. The under-fire U.K. finance minister is gearing up for a tricky budget next week — and slashing Brits’ energy bills could give her something to shout about. Officials in the Treasury and at No. 10 Downing Street are exploring ways to cut domestic energy costs by shifting some levies currently added to household bills into general taxation, said three government figures granted anonymity to discuss pre-budget planning.  Ministers are targeting a cut of between £150 and £170 on an annual household bill, according to one of the three figures. That would get Chancellor Reeves and Energy Secretary Ed Miliband halfway toward a totemic election promise of slashing bills by £300 by 2030 — and give the government something positive to pitch on budget day.  Officials are looking at “big numbers,” said another of the figures. “It could be a significant moment.”  A cut to VAT on energy bills is also under consideration, they said, echoing previous reports.  Number crunching by green policy wonks shows how Reeves, via those changes to levies and a potential VAT cut, could get the Treasury to its magic number.  PRIORITY: BILLS  Energy bills are the single biggest factor cited by voters as a cost-of-living concern, according to polls. Left-leaning think tank the Institute for Public Policy Research, which is highly influential in government circles, has called on Labour ministers to launch a “war on bills” campaign, modeled on Prime Minister Anthony Albanese’s approach in Australia.  The hope in the Treasury is that, by conjuring up a sum large enough to win some prominent headlines, Reeves might land a good news story on energy bills on a day otherwise set to be dominated by a “smorgasbord” of unpopular tax rises.  Energy prices were “still very high for people,” Reeves acknowledged earlier this month. She pledged to make action on the cost of living “one of the three priorities for the budget,” alongside reducing national debt and protecting the National Health Service.  Last week, nine Labour MPs, including the chair of parliament’s Environmental Audit Committee, Toby Perkins, wrote to Reeves urging her to move all social and environmental levies from bills into taxation.  Advocates regard this as a fairer way to ensure the costs fall on those with the broadest shoulders.  “The public wants to see action to reduce energy bills, which now ranks as the most worrying household expense amongst the population,” the letter, coordinated by charity the MCS Foundation, said.  OPTIONS  A dizzying array of levies are charged on bills to pay for renewable energy projects, energy-efficiency schemes and the costs of maintaining a stable electricity system. Collectively, they make up around 18 percent of the average electricity bill.  It isn’t yet clear which might be moved into taxation, but the first government figure above said the so-called Renewables Obligation — a charge that provides an income for older clean energy projects, some built 20 years ago — is the leading candidate to be shifted onto taxation.  The think tank Nesta, which has calculated the value of the reform, says it could potentially cut electricity bills by £86. The New Economics Foundation think tank puts the figure at around £95.  The government is also looking at the Energy Company Obligation, according to reports, which is currently levied on electricity and gas bills. That could instead be paid for using spending already allocated to the £13.2 billion Warm Homes Plan.  The Warm Homes Plan is expected to pay for energy-efficiency measures, solar panels and electric heating for poorer households — but full details have not yet been finalized.  Cornwall Insight, a consultancy which forecasts future trends in the energy market, said Tuesday that cutting VAT on energy bills from 5 percent to zero at the budget could bring down annual bills by a further £80.  NET ZERO CONSENT  Ministers hope taking direct action on bills will shore up public confidence in the government’s wider energy and climate agenda, which includes a stretching target to almost fully decarbonize electricity by 2030 and hit net zero greenhouse gas emissions by 2050.  The goal in the long run is to reduce U.K. dependence on gas, the volatile price of which has done major damage to household finances in recent years.  But the problem for the government is that actions required to achieve that strategy are — in the short term at least — pushing up bills. The costs of investing in new clean power sources like offshore wind farms, along with the electricity lines and pylons required to clean up the energy system, are all adding to costs.  The independent National Energy System Operator expects charges on energy bills to pay for upgrading the power grid to hit £93.48 next year, a jump of £40. Further increases are anticipated as vast pylon-building projects gather steam.  “This is a really delicate time for prices and their link to the legitimacy of the energy transition,” said Adam Berman, director of policy and advocacy at Energy UK, speaking in September. If ministers don’t look at ways to lower bills now, he argued, “they will be lining themselves up for a very challenging start to next year.”  Opposition parties have seized on this weakness in the government’s energy strategy. The Conservatives are calling for a Cheap Power Plan (rather than a clean one). Nigel Farage’s Reform UK said it would tear up expensive government contracts with offshore wind projects and abandon net zero altogether.  “Bills are the number one public concern,” said Sam Alvis, director of energy at the IPPR. “Regardless of whether it’s to underpin support for the clean power mission, any government needs to show it’s heard that message from the public that they want action on cost. Without that sense of public buy-in now, there’s no hope for any longer term economic or energy reforms.”  A Treasury spokesperson confirmed action on the cost of living was a priority for Reeves but said: “We do not comment on budget speculation.” 
Energy
Missions
Budget
Debt
Tax
China strides into US-sized gap at climate talks
BELÉM, Brazil — The Trump administration slammed the door on clean energy. China is sending the message it’s open for business. The signs are not hard to find in the sweltering, dimly lit convention center in the Amazon where delegates from nearly 200 countries are debating the Earth’s future. China’s section of the United Nations climate summit’s main hall features 5-foot-tall poster boards boasting of the country’s battery and electrical projects, from Egypt to Indonesia to Brazil. Corporate “partners” listed on the back wall include CATL, the world’s largest manufacturer of electric car batteries. BYD, the crown jewel of China’s world-leading electric vehicle empire, is an official sponsor of the summit, as is fellow Chinese electric carmaker GWM. Even Chinese President Xi Jinping’s personal brand is on display at the U.N. gathering, known as COP30, which is scheduled to end Friday. Visitors to the Chinese pavilion can find shrink-wrapped copies of books collecting his writings and speeches. Meanwhile, the United States is absent from the summit for the first time ever, as President Donald Trump disavows any participation in addressing a climate crisis that he calls a “hoax.” That’s not just a setback for the planet, climate supporters say. They say it also symbolizes a self-inflicted economic threat, as the U.S. abandons the growing worldwide market for EVs, solar panels, wind turbines and other clean technologies — and cedes it to China. “It’s not about electric power. This is about economic power,” said California Gov. Gavin Newsom, one of the few prominent American politicians at the summit, during a press conference here last week. He said Trump “simply doesn’t understand how enthusiastic President Xi is today that the Trump administration is nowhere to be found at COP30.” China does not yet show any signs that it’s trying to fill the role the U.S. has sometimes played at the annual climate talks: joining with the EU in pushing for all countries to make more ambitious climate commitments. While it has publicly lamented the U.S. exit from the U.N. dialogue, China still describes itself as a developing country and has proposed only modestly ambitious greenhouse gas reduction goals for its own economy. The Chinese are an undeniably major presence in Belém, however — Beijing’s 789 delegates make up the second-largest national contingent at the summit, behind the 3,805 people representing the host country, Brazil, and just ahead of Nigeria, according to an independent analysis of U.N. records. The official U.S. delegation has consisted solely of Sen. Sheldon Whitehouse (D-R.I.), who said the State Department set up impediments to his two-day visit that ended Saturday. Trump’s hostility to clean energy is a turnaround from former President Joe Biden’s administration, which pursued big-spending green policies — backed by protectionist tax rules that irked allies in Europe — in an attempt to compete with Chinese dominance. Some developing countries had welcomed Biden’s assertiveness, saying it offered an alternative to the onerous conditions that often come from accepting Chinese infrastructure and energy assistance. But that option is rapidly fading after Trump signed a Republican-backed law stripping away Biden’s green energy subsidies. “Most of the equipment, we are buying from China,” said an official from an East African government who was granted anonymity to avoid retribution from the Trump administration. “The market has been broken. Under Biden, people were motivated to buy things from the U.S.” Others attending the summit said they believe Trump’s policies will eventually leave the U.S. itself dependent on China as the global energy market shifts to cleaner products. That trend could hollow out the U.S. industrial core, said Nigel Topping, chair of the Climate Change Committee that advises the U.K. government. “It won’t be long before we have a queue of American governors begging BYD to set up electric car factories in the States,” Topping said. FOSSIL FUELS NOT DEAD YET Trump is articulating a starkly different vision: supplying the world’s growing energy demands with U.S. fossil fuels. He has backed up his talk with action, including using trade threats to undermine international climate agreements and pressure countries to buy more American oil and natural gas. The approach seizes on the fact that the U.S. is the world’s top oil and gas producer, a role it was already using for geopolitical advantage during the Biden era. Trump and his aides maintain that switching to green energy sources would only strengthen China’s stranglehold on wind, solar, battery, electric vehicle and rare earth supply chains. “President Trump wasted no time reversing Joe Biden’s Green New Scam, which significantly contributed to the worst inflation crisis in modern American history, drove up energy prices across the country, and stifled economic growth,” White House spokesperson Taylor Rogers said in a statement. “By unleashing American energy, we are strengthening our grid stability, making energy affordable for families and businesses, and protecting our national security.” The White House’s stance contains an inherent bet — that the world is not on the verge of a dramatic pivot to clean energy. “You will hear people go, ‘Well, the U.S. is peddling fossil fuels, and the Chinese are pushing renewables,’” said George David Banks, an international climate aide during Trump’s first term. “Well, yeah, that’s because that’s what we have, and that’s what they have.” Trump’s vision of a future flush with fossil fuels got some validation last week from the Paris-based International Energy Agency, whose recent track record of projecting massive increases in green energy has made it a target of conservatives in Washington. The IEA’s newest forecast includes a much different scenario based on nations’ existing laws that predicts worldwide oil and gas consumption will keep growing through 2050. But the IEA report also includes an alternative scenario — accounting for policies that countries plan to adopt — which envisions a future of rising renewable energy deployment, with fossil fuel use peaking before 2030. The energy think tank Ember said Thursday that wind and solar power expanded quickly enough during the first three quarters of 2025 to meet all the world’s new power demands, and it projected that fossil fuel power generation will not increase this year for the first time since the Covid-19 pandemic. A pledge that countries made at the 2023 U.N. climate summit to triple renewable energy capacity by 2030 appears within reach, Ember said. Wagering the United States’ economic future on the continued dominance of fossil fuels is foolish, former Vice President Al Gore said in an interview in Belém. “It’s a tragedy that Donald Trump has shot the U.S. economy in both feet and hobbled our ability to compete more effectively with China,” Gore said, pointing to Ember’s data showing that green technology exports from China exceed the value of all fossil fuel exports from the U.S. “One sector is an appreciating asset, the other is a diminishing asset, and the U.S. is on the wrong side of that equation.” During the two days of world leaders’ speeches preceding this month’s summit, Chinese Vice Premier Ding Xuexiang took a veiled shot at Trump’s trade and clean energy policies. “China is ready to work with all parties to unswervingly promote green and low-carbon development,” he said. ‘LARGE INVESTMENTS FIRST’ The United States still has a big footprint at COP30, of course — even if the federal government doesn’t. U.S. companies such as GE Vernova, Baker Hughes, Citibank and Bank of America attended the summit, noted Marty Durbin, president of the U.S. Chamber of Commerce’s Global Energy Institute. He said those businesses will pursue clean energy projects regardless of who occupies the White House or whether the president sends anyone to the talks. “Are we winning in that race?” Durbin said before a slight pause. “We’re in the race. And we’re going to continue to be part of that.” But others said they believe Trump’s policies will leave the U.S. in the lurch. While some foreign clean energy companies have exited the U.S. as an immediate response to Trump’s policy reversals, they will avoid the country altogether in the medium and long terms “if you cannot trust in it,” said Anne Simonsen, climate policy head of the business group Danish Industry. At the same time, China is going all in. China has poured huge direct investments into building clean technology and electric vehicle factories in emerging economies. In Brazil, Chinese investment in the electricity sector last year spiked 115 percent to $1.43 billion, with 69 percent of total Chinese-backed projects consisting of green energy and sustainability, according to the Brazil-China Business Council. Rich and poor nations have benefited from Chinese oversupply to buy cut-rate gear to meet clean energy goals. That approach and Chinese investments have transformed economies, said André Aranha Corrêa do Lago, president of the COP30 summit. China “added the elements that I believe were missing” from the world’s green energy transition, Corrêa do Lago said Nov. 10 at a press conference. “One of them is scale. The other is technology. And the other is the fact that as a developing country, it needs to bring solutions that are affordable to more people.” But he acknowledged in a separate interview with POLITICO that while China’s gusher of less-expensive technology could help address climate change more quickly, relying on one supplier creates other complications. China is “indisputably” the leader in all green technology, much of which is high quality, said Juan Carlos Monterrey Gómez, Panama’s climate envoy and chief negotiator. He said U.S. automakers are “shit-scared” that they won’t be able to catch up with Chinese models, a worry that Newsom also espoused in several public comments. As an economist by trade, Monterrey Gómez said he too worries about the world relying so much on one supplier. Still, he said he sees no major alternative at the moment. “They did fast investments, large investments first,” he said. “That’s why they’re benefiting from this.” Sara Schonhardt contributed to this report from Belém, Brazil.
Energy
Security
Technology
Cars
Supply chains
Past promises haunt Brazil’s climate summit
BELÉM, Brazil — United Nations climate summits have for years ended with bold promises to stave off global warming. But those commitments often fade when nations go home. Three years ago, in a resort city on the Red Sea, delegates from nearly 200 countries approved what they hailed as a historic fund to help poorer nations pay for climate damages — but it’s at risk of running dry. A year later, negotiations a few miles from Dubai’s gleaming waterfront achieved the first-ever worldwide pledge to turn away from fossil fuels — but production of oil and natural gas is still rising, a trend championed by the new administration in Washington. That legacy is casting a shadow over this year’s conference near the mouth of the Amazon River, which the host, Brazil, has dubbed a summit of truth. Days after the gathering started last week, nations were still sorting out what to do with contentious issues that have typically held up the annual negotiations. As the talks opened, Brazilian President Luiz Inácio Lula da Silva said the world must “fight” efforts to deny the reality of climate change — decades after scientists concluded that people are making the Earth hotter. That led one official to offer a grim assessment of global efforts to tackle climate change, 10 years after an earlier summit produced the sweeping Paris Agreement. “We have miserably failed to accomplish the objective of this convention, which is the stabilization of greenhouse gases in the atmosphere,” said Juan Carlos Monterrey Gómez, Panama’s climate envoy and lead negotiator, during an interview at the conference site in Belém, Brazil. “Additional promises mean nothing if you didn’t achieve or fulfill your previous promises,” he added. It hasn’t helped that the U.S. is skipping the summit for the first time, or that President Donald Trump dismisses climate change as a hoax and urged the world to abandon efforts to fix it. But Trump isn’t the only reason for stalled action. Economic uncertainty, infighting and political backsliding have stymied green measures in both North America and Europe. In other parts of the world, countries are embracing the economic opportunities that the green transition offers. Many officials in Belém point to signs that progress is underway, including the rapid growth of renewables and electric vehicles and a broader understanding of both the world’s challenges and the means to address them. “Now we talk about solar panels, electric cars, regenerative agriculture, stopping deforestation, as if we have always talked about those things,” said Ana Toni, the summit’s executive director. “Just in one decade, the topic changed totally. But we still need to speed up the process.” Still, analysts say it’s become inevitable that the world’s warming will exceed 1.5 degrees Celsius since the dawn of the industrial era, breaching the target at the heart of the Paris Agreement. With that in mind, countries are huddling at this month’s summit, known as COP30, with the hope of finding greater alignment on how to slow rising temperatures. But how credible would any promises reached in Brazil be? Here are five pledges achieved at past climate summits — and where they stand now: MOVING AWAY FROM FOSSIL FUELS The historic 2023 agreement to “transition away” from fossil fuels, made at the COP28 talks in Dubai, was the first time that nearly 200 countries agreed to wind down their use of oil, natural gas and coal. Though nonbinding, that commitment was even more striking because the talks were overseen by the chief executive of the United Arab Emirates’ state-owned oil company. Just two years later, fossil fuel consumption is on the rise, despite rapid growth of wind and solar, and many of the world’s largest oil and gas producers plan to drill even more. The United States — the world’s biggest economy, top oil and gas producer and second-largest climate polluter — is pursuing a fossil fuel renaissance while forsaking plans to shift toward renewables. The president of the Dubai summit, Sultan al-Jaber, said at a recent energy conference that while wind and solar would expand, so too would oil and gas, in part to meet soaring demand for data centers. Liquefied natural gas would grow 65 percent by 2050, and oil will continue to be used as a feedstock for plastic, he said. “The exponential growth of AI is also creating a power surge that no one anticipated 18 months ago,” he said in a press release from the Abu Dhabi National Oil Co., where he remains managing director and group CEO. The developed world is continuing to move in the wrong direction on fossil fuels, climate activists say. “We know that the world’s richest countries are continuing to invest in oil and gas development,” said Bill Hare, a climate scientist who founded Climate Analytics, a policy group. “This simply should not be happening.” The Paris-based International Energy Agency said last week that oil and gas demand could grow for decades to come. That statement marked a reversal from the group’s previous forecast that oil use would peak in 2030 as clean energy takes hold. Trump’s policies are one reason for the pivot. Still, renewables such as wind and solar power are soaring in many countries, leading analysts to believe that nations will continue to shift away from fossil fuels. How quickly that will happen is unknown. “The transition is underway but not yet at the pace or scale required,” said a U.N. report on global climate action released last week. It pointed to large gaps in efforts to reduce fossil fuel subsidies and abate methane pollution. Lula opened this year’s climate conference by calling for a “road map” to cut fossil fuels globally. It has earned support from countries such as Colombia, Germany, Kenya and the United Kingdom. But it’s not part of the official agenda at these talks, and many poorer countries say what they really need is funding and support to make the shift. TRIPLE RENEWABLE ENERGY, DOUBLE ENERGY EFFICIENCY This call also emerged from the 2023 summit, and was considered a tangible measure of countries’ progress toward achieving the Paris Agreement’s temperature targets. Countries are on track to meet the pledge to triple their renewable energy capacity by 2030, thanks largely to a record surge in solar power, according to energy think tank Ember. It estimates that the world is set to add around 793 gigawatts of new renewable capacity in 2025, up from 717 gigawatts in 2024, driven mainly by China. “If this pace continues, annual additions now only need to grow by around 12 percent a year from 2026 to 2030 to reach tripling, compared with 21 percent originally needed,” said Dave Jones, Ember’s chief analyst. “But governments will need to strengthen commitments to lock this in.” The pledge to double the world’s energy efficiency by 2030, by contrast, is a long way behind. While efficiency improvements would need to grow by 4 percent a year to reach that target, they hit only 1 percent in 2024. ‘LOSS AND DAMAGE’ FUND When the landmark fund for victims of climate disasters was established at the 2022 talks in Sharm El-Sheikh, Egypt, it offered promise that billions of dollars would someday flow to nations slammed by hurricanes, droughts or rising seas. Three years later, it has less than $800 million — only a little more than it had in 2023. Mia Mottley, prime minister of Barbados, excoriated leaders this month for not providing more. Her rebuke came little more than a week after Hurricane Melissa, one of the strongest tropical cyclones ever seen in the Atlantic, swept across the Caribbean. “All of us should hold our heads down in shame, because having established this fund a few years ago in Sharm El-Sheikh, its capital base is still under $800 million while Jamaica reels from damage in excess of $7 billion, not to mention Cuba or the Bahamas,” she said. Last week, the fund announced it was allocating $250 million for financial requests to help less-wealthy nations grapple with “damage from slow onset and extreme climate-induced events.” The fund’s executive director, Ibrahima Cheikh Diong, said the call for contributions was significant but also a reminder that the fund needs much more money. Richard Muyungi, chair for the African Group of Negotiators and Tanzania’s climate envoy, said he expects additional funds will come from this summit, though not the billions needed. “There is a chance that the fund will run out of money by next year, year after next, before it even is given a chance to replenish itself,” said Michai Robertson, a senior finance adviser for the Alliance of Small Island States. GLOBAL METHANE PLEDGE Backed by the U.S. and European Union, this pledge to cut global methane emissions 30 percent by 2030 was launched four years ago at COP26 in Glasgow, Scotland, sparking a wave of talk about the benefits of cutting methane, a greenhouse gas with a relatively short shelf life but much greater warming potential than carbon dioxide. “The Global Methane Pledge has been instrumental in catalyzing attention to the issue of methane, because it has moved from a niche issue to one of the critical elements of the climate planning discussions,” said Giulia Ferrini, head of the U.N. Environment Program’s International Methane Emissions Observatory. “All the tools are there,” she added. “It’s just a question of political will.” Methane emissions from the oil and gas sector remain stubbornly high, despite the economic benefits of bringing them down, according to the IEA. The group’s latest methane tracker shows that energy-based methane pollution was around 120 million tons in 2024, roughly the same as a year earlier. Despite more than 150 nations joining the Global Methane Pledge, few countries or companies have devised plans to meet their commitments, “and even fewer have demonstrated verifiable emissions reductions,” the IEA said. The European Union’s methane regulation requires all oil and gas operators to measure, report and verify their emissions, including importers. And countries and companies are becoming more diligent about complying with an international satellite program that notifies companies and countries of methane leaks so they can repair them. Responses went from just 1 percent of alerts last year to 12 percent so far in 2025. More work is needed to achieve the 2030 goal, the U.N. says. Meanwhile, U.S. officials have pressured the EU to rethink its methane curbs. Barbados and several other countries are calling for a binding methane pact similar to the Montreal Protocol, the 1987 agreement that’s widely credited with saving the ozone layer by phasing out the use of harmful pollutants. That’s something Paris Agreement architect Laurence Tubiana hopes could happen. “I’m just in favor of tackling this very seriously, because the pledge doesn’t work [well] enough,” she said. CLIMATE FINANCE In 2009, wealthy countries agreed to provide $100 billion annually until 2025 to help poorer nations deal with rising temperatures. At last year’s climate talks in Azerbaijan, they upped the ante to $300 billion per year by 2035. But those countries delivered the $100 billion two years late, and many nations viewed the new $300 billion commitment with disappointment. India, which expressed particular ire about last year’s outcome, is pushing for new discussions in Brazil to get that money flowing. “Finance really is at the core of everything that we do,” Ali Mohamed, Kenya’s climate envoy, told POLITICO’s E&E News. But he also recognizes that governments alone are not the answer. “We cannot say finance must only come from the public sector.” Last year’s pledge included a call for companies and multilateral development banks to contribute a sum exceeding $1 trillion by 2035, but much of that would be juiced by donor nations — and more countries would need to contribute. That is more important now, said Jake Werksman, the EU’s lead negotiator. “As you know, one of the larger contributors to this process, the U.S., has essentially shut down all development flows from the U.S. budget, and no other party, including the EU, can make up for that gap,” he said during a press conference. Zack Colman and Zia Weise contributed to this report from Belém, Brazil.
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Athens and Kyiv sign LNG deal as Greece adopts US energy agenda
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.
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Trump’s fossil fuel crusade confronts the climate faithful
President Donald Trump is no longer content to stand aloof from the global alliance trying to combat climate change. His new goal is to demolish it — and replace it with a new coalition reliant on U.S. fossil fuels. Trump’s increasingly assertive energy diplomacy is one of the biggest challenges awaiting the world leaders, diplomats and business luminaries gathering for a United Nations summit in Brazil to try to advance the fight against global warming. The U.S. president will not be there — unlike the leaders of countries including France, Germany and the United Kingdom, who will speak before delegates from nearly 200 nations on Thursday and Friday. But his efforts to undermine the Paris climate agreement already loom over the talks, as does his initial success in drawing support from other countries. “It’s not enough to just withdraw from” the 2015 pact and the broader U.N. climate framework that governs the annual talks, said Richard Goldberg, who worked as a top staffer on Trump’s White House National Energy Dominance Council and is now senior adviser to the think tank Foundation for Defense of Democracies. “You have to degrade it. You have to deter it. You have to potentially destroy it.” Trump’s approach includes striking deals demanding that Japan, Europe and other trading partners buy more U.S. natural gas and oil, using diplomatic strong-arming to deter foreign leaders from cutting fossil fuel pollution, and making the United States inhospitable to clean energy investment. Unlike during his first term, when Trump pulled out of the Paris Agreement but sent delegates to the annual U.N. climate talks anyway, he now wants to render them ineffective and starved of purpose by drawing as many other countries as possible away from their own clean energy goals, according to Cabinet officials’ public remarks and interviews with 20 administration allies and alumni, foreign diplomats and veterans of the annual climate negotiations. Those efforts are at odds with the goals of the climate summits, which included a Biden administration-backed pledge two years ago for the world to transition away from fossil fuels. Slowing or reversing that shift could send global temperatures soaring above the goals set in Paris a decade ago, threatening a spike in the extreme weather that is already pummeling countries and economies. The White House says Trump’s campaign to unleash American oil, gas and coal is for the United States’ benefit — and the world’s. “The Green New Scam would have killed America if President Trump had not been elected to implement his commonsense energy agenda — which is focused on utilizing the liquid gold under our feet to strengthen our grid stability and drive down costs for American families and businesses,” White House spokesperson Taylor Rogers said in a statement. “President Trump will not jeopardize our country’s economic and national security to pursue vague climate goals that are killing other countries.” ‘WOULD LIKE TO SEE THE PARIS AGREEMENT DIE’ The Trump administration is declining to send any high-level representatives to the COP30 climate talks, which will formally begin Monday in Belém, Brazil, according to a White House official who declined to comment on the record about whether any U.S. government officials would participate. Trump’s view that the annual negotiations are antithetical to his energy and economic agenda is also spreading among other Republican officials. Many GOP leaders, including 17 state attorneys general, argued last month that attending the summit would only legitimize the proceedings and its expected calls for ditching fossil fuels more swiftly. Climate diplomats from other countries say they’ve gotten the message about where the U.S. stands now — and are prepared to act without Washington. “We have a large country, a president, and a vice president who would like to see the Paris Agreement die,” Laurence Tubiana, the former French government official credited as a key architect of the 2015 climate pact, said of the United States. “The U.S. will not play a major role” at the summit, said Jochen Flasbarth, undersecretary in the German Ministry of Environmental Affairs. “The world is collectively outraged, and so we will focus — as will everyone else — on engaging in talks with those who are driving the process forward.” Trump and his allies have described the stakes in terms of a zero-sum contest between the United States and its main economic rival, China: Efforts to reduce greenhouse gas emissions, they say, are a complete win for China, which sells the bulk of the world’s solar, wind, battery and electric vehicle technology. That’s a contrast from the approach of former President Joe Biden, who pushed a massive U.S. investment in green technologies as the only way for America to outcompete China in developing the energy sources of the future. In the Trump worldview, stalling that energy transition benefits the United States, the globe’s top producer of oil and natural gas, along with many of the technologies and services to produce, transport and burn the stuff. “If [other countries] don’t rely on this technology, then that’s less power to China,” said Diana Furchtgott-Roth, who served in the U.S. Transportation Department during Trump’s first term and is now director of the Center for Energy, Climate and Environment at the conservative think tank the Heritage Foundation. TRUMP FINDS ALLIES THIS TIME Two big developments have shaped the president’s new thinking on how to counteract the international fight against climate change, said George David Banks, who was Trump’s international climate adviser during the first administration. The first was the Inflation Reduction Act that Democrats passed and Biden signed in 2022, which promised hundreds of billions of dollars to U.S. clean energy projects. Banks said the legislation, enacted entirely on partisan lines, made renewable energy a political target in the minds of Trump and his fossil-fuel backers. The second is Trump’s aggressive use of U.S. trading power during his second term to wring concessions from foreign governments, Banks said. Trump has required his agencies to identify obstacles for U.S. exports, and the United Nations’ climate apparatus may be deemed a barrier for sales of oil, gas and coal. Trump’s strategy is resonating with some fossil fuel-supporting nations, potentially testing the climate change comity at COP30. Those include emerging economies in Africa and Latin America, petrostates such as Saudi Arabia, and European nations feeling a cost-of-living strain that is feeding a resurgent right wing. U.S. Energy Secretary Chris Wright drew applause in March at a Washington gathering called the Powering Africa Summit, where he called it “nonsense” for financiers and Western nations to vilify coal-fired power. He also asserted that U.S. natural gas exports could supply African and Asian nations with more of their electricity. Wright cast the goal of achieving net-zero greenhouse gas pollution by 2050 — the target dozens of nations have embraced — as “sinister,” contending it consigns developing nations to poverty and lower living standards. The U.S. about-face was welcome, Sierra Leone mining and minerals minister Julius Daniel Mattai said during the conference. Western nations had kneecapped financing for offshore oil investments and worked to undercut public backing for fossil fuel projects, Mattai said, criticizing Biden’s administration for only being interested in renewable energy. But now Trump has created room for nations to use their own resources, Mattai said. “With the new administration having such a massive appetite for all sorts of energy mixes, including oil and gas, we do believe there’s an opportunity to explore our offshore oil investments,” he said in an interview. TURNING UP THE HEAT ON TRADING PARTNERS Still, Banks acknowledged that Trump probably can’t halt the spread of clean energy. Fossil fuels may continue to supply energy in emerging economies for some time, he said, but the private sector remains committed to clean energy to meet the U.N.’s goals of curbing climate change. That doesn’t mean Trump won’t try. The administration’s intent to pressure foreign leaders into a more fossil-fuel-friendly stance was on full display last month at a London meeting of the U.N.’s International Maritime Organization where U.S. Cabinet secretaries and diplomats succeeded in thwarting a proposed carbon emissions tax on global shipping. That coup followed a similar push against Beijing a month earlier, when Mexico — the world’s biggest buyer of Chinese cars — slapped a 50 percent tariff on automotive imports from China after pressure from the Trump administration. China accused the U.S. of “coercion.” Trump’s attempt to flood global markets with ever growing amounts of U.S. fossil fuels is even more ambitious, though so far incomplete. The EU and Japan — under threat of tariffs — have promised to spend hundreds of billions of dollars on U.S. energy products. But so far, new and binding contracts have not appeared. Trump has also tried to push China, Japan and South Korea to invest in a $44 billion liquefied natural gas project in Alaska, so far to no avail. In the face of potential tariffs and other U.S. pressure, European ministers and diplomats are selling the message that victory at COP30 might simply come in the form of presenting a united front in favor of climate action. That could mean joining with other major economies such as China and India, and forming common cause with smaller, more vulnerable countries, to show that Trump is isolated. “I’m sure the EU and China will find themselves on opposite sides of many debates,” said the EU’s lead climate negotiator, Jacob Werksman. “But we have ways of working with them. … We are both betting heavily on the green transition.” Avoiding a faceplant may actually be easier if the Trump administration does decide to turn up in Brazil, said Li Shuo, the director of China Climate Hub at the Asia Society Policy Institute in Washington. “If the U.S. is there and active, I’d expect the rest of the world, including the EU and China, to rest aside their rhetorical games in front of a larger challenge,” Li wrote via text. And for countries attending COP, there is still some hope of a long-term win. Solar, wind, geothermal and other clean energy investments are continuing apace, even if Trump and the undercurrents that led to his reelection have hindered them, said Nigel Purvis, CEO of climate consulting firm Climate Advisers and a former State Department climate official. Trump’s attempts to kill the shipping fee, EU methane pollution rules and Europe’s corporate sustainability framework are one thing, Purvis said. But when it comes to avoiding Trump’s retribution, there is “safety in numbers” for the rest of the world that remains in the Paris Agreement, he added. And even if the progress is slower than originally hoped, those nations have committed to shifting their energy systems off fossil fuels. “We’re having slower climate action than otherwise would be the case. But we’re really talking about whether Trump is going to be able to blow up the regime,” Purvis said. “And I think the answer is ‘No.’” Nicolas Camut in Paris, Zia Weise in Brussels and Josh Groeneveld in Berlin contributed to this report.
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Fresh off redistricting win, Newsom to head to climate talks in Brazil
SACRAMENTO, California — California Gov. Gavin Newsom on Wednesday confirmed he plans to attend the United Nations climate conference in Brazil next week, on the heels of a resounding political victory against President Donald Trump. The Democrat and likely 2028 White House aspirant will be the highest-profile government representative there from the United States after the Trump administration decided not to send any high-ranking officials. Stepping into the vacuum plays to Newsom’s strengths, especially after his decisive win Tuesday on his congressional redistricting measure vaulted him to the position of the Democrats’ strongest retort to Trump. Newsom put his trip squarely in that anti-Trump lineage in an interview Wednesday with POLITICO, saying he was making the trip “because of the complete abdication of the Trump administration that is joining the Saudis and Russia and the Gulf states. “It’s doubled down on hydrocarbons as the rest of the world is sprinting ahead on low-carbon green growth,” Newsom said. “For me, it is about our economic competitiveness, period, full stop.” Newsom’s attendance underscores his continued efforts to make California a leading stand-in for U.S. engagement on climate change in Trump’s second term. Govs. Tony Evers of Wisconsin and Michelle Lujan Grisham of New Mexico, both Democrats, are currently in Brazil for part of the climate talks, as are dozens of mayors from across the country, but they don’t have the heft of the world’s fourth-largest economy behind them. Newsom has spent all year positioning the state as a counterweight to federal rollbacks, including by brokering partnerships with other nations and subnational governments. The trip to Brazil — Newsom’s first attendance at a COP — also gives him a platform to build his national and international profile ahead of a possible presidential run in 2028. “I just want to make sure everyone understands we’re maybe 2000 miles from 1600 Pennsylvania Avenue, but we’re a world away in terms of our mindset on these issues,” Newsom said. The California Democrat will first lead a delegation of state officials to a global investment conference in São Paulo, where his agenda includes a fireside chat with Milken Institute CEO Richard Ditizio and meetings with Brazilian officials and business leaders. Then he will travel to Belém, a city at the mouth of the Amazon River that will host tens of thousands of negotiators, scientists, and activists for two weeks of climate talks as part of COP 30. There, he is expecting to tout California’s commitments to renewable energy and meet with counterparts from around the world to formalize partnerships. He is also expected to travel deeper into the Amazon to meet with “community stewards,” according to his office. Newsom will face the reality that California, despite its swagger, can’t play any formal role in nation-to-nation negotiations. But he’s trying to get around that: He’s co-chairing, remotely, a summit in Rio de Janeiro this week gathering mayors and governors highlighting their efforts to keep cutting emissions despite national backsliding. Climate diplomats from Europe and elsewhere, who lost their bid to impose a global carbon tax on shipping last month amid opposition from the Trump administration, are already clamoring for an alternative from the United States at the Brazil talks, even as they water down their own goals. “The U.S. will not play a major role,” said Jochen Flasbarth, the Undersecretary in the German Ministry of Environmental Affairs, in mid-October. “The world is collectively outraged, and so we will focus — as will everyone else — on engaging in talks with those who are driving the process forward.” Josh Groeneveld contributed reporting.
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Europe’s energy transition must power a stronger tomorrow
Disclaimer: POLITICAL ADVERTISEMENT * The sponsor is Polish Electricity Association (PKEE) * The advertisement is linked to policy advocacy on energy transition, electricity market design, and industrial competitiveness in the EU. More information here The European Union is entering a decisive decade for its energy transformation. With the international race for clean technologies accelerating, geopolitical tensions reshaping markets and competition from other major global economies intensifying, how the EU approaches the transition will determine its economic future. If managed strategically, the EU can drive competitiveness, growth and resilience. If mismanaged, Europe risks losing its industrial base, jobs and global influence.  > If managed strategically, the EU can drive competitiveness, growth and > resilience. If mismanaged, Europe risks losing its industrial base, jobs and > global influence. This message resonated strongly during PKEE Energy Day 2025, held in Brussels on October 14, which brought together more than 350 European policymakers, industry leaders and experts under the theme “Secure, competitive and clean: is Europe delivering on its energy promise?”. One conclusion was clear: the energy transition must serve the economy, not the other way around.  Laurent Louis Photography for PKEE The power sector: the backbone of Europe’s industrial future  The future of European competitiveness will be shaped by its power sector. Without a successful transformation of electricity generation and distribution, other sectors — from steel and chemicals to mobility and digital — will fail to decarbonize. This point was emphasized by Konrad Wojnarowski, Poland’s deputy minister of energy, who described electricity as “vital to development and competitiveness.”  “Transforming Poland’s energy sector is a major technological and financial challenge — but we are on the right track,” he said. “Success depends on maintaining the right pace of change and providing strong support for innovation.” Wojnarowski also underlined that only close cooperation between governments, industry and academia can create the conditions for a secure, competitive and sustainable energy future.  Flexibility: the strategic enabler  The shift to a renewables-based system requires more than capacity additions — it demands a fundamental redesign of how electricity is produced, managed and consumed. Dariusz Marzec, president of the Polish Electricity Association (PKEE) and CEO of PGE Polska Grupa Energetyczna, called flexibility “the Holy Grail of the power sector.”  Speaking at the event, Marzec also stated “It’s not about generating electricity continuously, regardless of demand. It’s about generating it when it’s needed and making the price attractive. Our mission, as part of the European economy, is to strengthen competitiveness and ensure energy security for all consumers – not just to pursue climate goals for their own sake. Without a responsible approach to the transition, many industries could relocate outside Europe.”  The message is clear: the clean energy shift must balance environmental ambition with economic reality. Europe cannot afford to treat decarbonization as an isolated goal — it must integrate it into a broader industrial strategy.  > The message is clear: the clean energy shift must balance environmental > ambition with economic reality. The next decade will define success  While Europe’s climate neutrality target for 2050 remains a cornerstone of EU policy, the next five to ten years will determine whether the continent remains globally competitive. Grzegorz Lot, CEO of TAURON Polska Energia and vice-president of PKEE, warned that technology is advancing too quickly for policymakers to rely solely on long-term milestones.  “Technology is evolving too fast to think of the transition only in terms of 2050. Our strategy is to act now — over the next year, five years, or decade,” Lot said. He pointed to the expected sharp decline in coal consumption over the next three years and called for immediate investment in proven technologies, particularly onshore wind.  Lot also raised concerns about structural barriers. “Today, around 30 percent of the price of electricity is made up of taxes. If we want affordable energy and a competitive economy, this must change,” he argued.  Consumers and regulation: the overlooked pillars  A successful energy transition cannot rely solely on investment and infrastructure. It also depends on regulatory stability and consumer participation. “Maintaining competitiveness requires not only investment in green technologies but also a stable regulatory environment and active consumer engagement,” Lot said.  He highlighted the potential of dynamic tariffs, which incentivize demand-side flexibility. “Customers who adjust their consumption to market conditions can pay below the regulated price level. If we want cheap energy, we must learn to follow nature — consuming and storing electricity when the sun shines or the wind blows.”  Strategic investments for resilience  The energy transition is more than a climate necessity. It is a strategic requirement for Europe’s security and economic autonomy. Marek Lelątko, vice-president of Enea, stressed that customer- and market-oriented investment is essential. “We are investing in renewables, modern gas-fired units and energy storage because they allow us to ensure supply stability, affordable prices and greater energy security,” he said.  Grzegorz Kinelski, CEO of Enea and vice-president of PKEE, added: “We must stay on the fast track we are already on. Investments in renewables, storage and CCGT [combined cycle gas turbine] units will not only enhance energy security but also support economic growth and help keep energy prices affordable for Polish consumers.”  The power sector must now be recognized as a strategic enabler of Europe’s industrial future — on par with semiconductors, critical raw materials and defense. As Dariusz Marzec puts it: “The energy transition is not a choice — it is a necessity. But its success will determine more than whether we meet climate targets. It will decide whether Europe remains competitive, prosperous and economically independent in a rapidly changing world.”  > The power sector must now be recognized as a strategic enabler of Europe’s > industrial future — on par with semiconductors, critical raw materials and > defense. Measurable progress, but more is needed  Progress is visible. The power sector accounts for around 30 percent of EU emissions but has already delivered 75 percent of all Emissions Trading System reductions. By 2025, 72 percent of Europe’s electricity will come from low-carbon sources, while fossil fuels will fall to a historic low of 28 percent. And in Poland, in June, renewable energy generation overtook coal for the first time in history.  Still, ambition alone is not enough. In his closing remarks, Marcin Laskowski, vice-president of PKEE and executive vice-president for regulatory affairs at PGE Polska Grupa Energetyczna, stressed the link between the power sector and Europe’s broader economic transformation. “The EU’s economic transformation will only succeed if the energy transition succeeds — safely, sustainably and with attractive investment conditions,” he said. “It is the power sector that must deliver solutions to decarbonize industries such as steel, chemicals and food production.”  A collective European project  The event in Brussels — with the participation of many high-level speakers, including Mechthild Wörsdörfer, deputy director general of DG ENER; Tsvetelina Penkova, member of the European Parliament and vice-chair of the Committee on Industry, Research and Energy; Thomas Pellerin-Carlin, member of the European Parliament; Catherine MacGregor; CEO of ENGIE and vice-president of Eurelectric; and Claude Turmes, former minister of energy of Luxembourg — highlighted a common understanding: the energy transition is not an isolated environmental policy, it is a strategic industrial project. Its success will depend on coordinated action across EU institutions, national governments and industry, as well as predictable regulation and financing.  Europe’s ability to remain competitive, resilient and prosperous will hinge on whether its power sector is treated not as a cost to be managed, but as a foundation to be strengthened. The next decade is a window of opportunity — and the choices made today will shape Europe’s economic landscape for decades to come. 
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