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Kate Abnett, Reuters
The European Commission will set out plans today to “cut electricity taxes and coordinate the summer refill of countries' gas storage, as it seeks to cushion the energy fallout from the Iran war”, reports Reuters. According to draft proposals seen by the newswire, the EU will “avoid major market interventions such as capping gas prices or taxing energy companies' windfall profits”, instead planning to “curb EU tax rules to favour electricity over oil and gas, and make it easier for governments to cut industries' electricity taxes to zero”. According to the Financial Times, the European Commission is “proposing coordinating gas purchases among member states to avoid price surges”. However, Politico says the move “risks provoking a backlash from industry, which has long questioned the effectiveness of coordinated fuel buying”. Reuters says the EU will “caution its members not to shut nuclear plants early”. Politico also covers the energy plan.
Separately, Al Jazeera says: “The European Union is mulling jet fuel imports from the US and new minimum reserve quotas as it eyes options amid a supply crunch due to the Iran conflict.” Euractiv says the European Commission “is rejecting demands to clamp down on air travel”. Politico says that “if a jet fuel crisis led to shortages across the European Union, member countries could be asked to share fuel reserves”. The Wall Street Journal says the price of long-distance airline tickets in Europe has increased by more than $100 on average since the war began. The Financial Times says that German airline Lufthansa “has cancelled 20,000 flights between May and October to save fuel”. Bloomberg, the Wall Street Journal and Politico also cover the story.
MORE ON EU
The Guardian covers a study which finds that climate change has extended the pollen season in Europe by “between one and two weeks since the 1990s”. The Times, the Daily Telegraph and the Independent also cover the study. Reuters: “Spain and Ireland are set to assess viability of undersea power link.” Bloomberg says: “Ukrainian president Volodymyr Zelenskiy said repairs have been completed on the Druzhba oil pipeline, allowing the resumption of Russian oil flows to Europe and paving the way for a much-needed €90bn ($106bn) loan.” Bloomberg: “A plan by Marine Le Pen’s far-right party to scrap renewables and the energy regulator would be a disaster for France, the CEO of giant utility Engie said.”. Agence France-Presse says: “Chinese carmaker Chery said Tuesday it wants to manufacture a small electric vehicle in Europe for the European market.”
James Murray, BusinessGreen
There is ongoing coverage of a speech given by UK energy secretary Ed Miliband yesterday, which BusinessGreen says outlined how the government intends to "break the influence of gas on electricity prices". According to the outlet, Miliband “confirmed plans to reform the legacy renewables obligation (RO) scheme”. It continues: “The move will see the electricity generator levy (EGL) windfall tax on legacy renewables and nuclear generators increased from 45% to 55%.” It adds that renewable generators that currently benefit from the RO scheme “will be offered the chance to move onto new fixed price contracts known as wholesale contracts for difference (WCfDs), which are modelled on the existing CfD regime and would provide generators with stable prices and allow them to avoid the increased windfall tax”. [See the Carbon Brief coverage of the plan for more detail.]
The New Statesman has published a “lightly edited” version of Miliband’s speech. The Press Association reports that "ministers are increasing the grants available under the ‘boiler upgrade scheme’ from £7,500 to £9,000 for properties that rely on heating oil and LPG” as part of the plans outlined by Miliband. The Daily Express, Euractiv and Daily Mail also cover the speech. The Guardian explains why UK electricity prices are linked to gas. Meanwhile, the Daily Telegraph says that chancellor Rachel Reeves “confirmed on Tuesday that offshore operators would be allowed to open new oil and gas fields near existing projects”.
Separately, the Financial Times reports that the government will give energy regulator Ofgem the power to “claw back bonuses or prevent [energy executives] being awarded if executives are found to have caused ‘significant harm” to consumers’”. According to the Press Association, the government says Ofgem is to be “transformed” and executives will be “‘incentivised to act in their customers' best interests”.
MORE ON UK
The Bureau of Investigative Journalism finds that “UK public sector pension schemes are bankrolling rapid expansion of liquefied natural gas production in the US South”. Democracy for Sale reports that "oil and gas lobbyists have met ministers 96 times since July 2024 as industry pushes to overturn Labour's North Sea drilling ban and scrap energy windfall tax”. The Daily Telegraph says: “Angela Rayner has praised her ‘friend’ Ed Miliband’s net-zero drive, raising speculation of a potential leadership pact.” The Guardian reports that “airlines are lobbying the UK government to relax environmental and noise rules” in anticipation of “higher costs and a possible shortage of jet fuel because of the war in the Middle East”. The Guardian says: “A group of 500 Welsh farmers have brought a landmark legal claim to the high court over the alleged conduct of a green energy developer planning to build electricity pylon routes across their land.” The Independent reports that according to the Institute for Public Policy Research, the government should seize “excess” profits made by energy network companies to help households pay their energy bills.
Nate Raymond, Reuters
A federal judge has blocked the Trump administration from “enforcing a series of permitting policies that wind and solar energy industry groups say have stymied the development of new energy generation projects”, reports Reuters. According to the newswire, the judge “issued a preliminary injunction, sought by nine advocacy groups and industry trade associations that argued the administration had imposed unlawful roadblocks that have halted the development of wind and solar energy projects nationwide”. It adds: “The judge said the plaintiffs were likely to succeed in showing the US Department of Interior and other agencies adopted a series of unlawful policies that had led to renewable energy developers canceling or delaying numerous wind and solar projects nationwide.” The New York Times, says: “It is unclear whether the Trump administration will try to appeal the ruling.” CNBC and the Associated Press also cover the news.
MORE ON US:
Inside Climate News says: “Five environmental groups are petitioning a federal appeals court to invalidate a water quality permit issued by the US Army Corps of Engineers for a controversial Transco pipeline.” Bloomberg reports that United Airlines “slashed its full-year profit forecast as higher fuel prices caused by war in the Middle East batter global carriers”. The Wall Street journal says the airline “plans to trim its capacity for the rest of the year”. The Associated Press says the federal government is planning “another oil and gas lease sale for Alaska’s Arctic National Wildlife Refuge”. Reuters reports on a new government initiative to “provide low-cost financing to increase the output of the existing nuclear fleet”. Bloomberg reports claims by energy secretary Chris Wright that “the surge in US gasoline prices from the Iran war appears to have crested”. Politico reports that Trump “is invoking wartime powers to boost fossil fuels as the war he started pushes up energy prices”.
BJX News
Chinese premier Li Qiang called for “optimising China's energy structure” and implementing China’s “new strategy for energy security”, deepening energy system reforms to support the country’s low-carbon transition, according to industry news outlet BJX News. It says his remarks were made in a “study session” on the transition and building a new energy system. The outlet says Li added that China should “accelerate the construction of clean energy bases” and “vigorously develop distributed solar and decentralized wind power”. It also cites Li saying China should “promote the transformation of coal-fired power to serve both as a baseload power source and a system-regulating power source”. Meanwhile, Zheng Shanjie, head of China’s economic |
