🌱 Decarbonization and Energy Transition
1. ArcelorMittal Abandons German Green Steel Plan Over Energy Costs
Steel giant ArcelorMittal scrapped plans to decarbonize two German plants using hydrogen, citing prohibitively high electricity costs and policy uncertainty. The company even turned down €1.3 billion in subsidies—a blow to Germany’s green steel ambitions, highlighting how soaring power prices are hindering industrial climate projects. (Source: Reuters)
2. UK Industrial Strategy Bets on Clean Energy and Lower Power Costs
Britain unveiled a 10-year industrial plan aiming to cut business electricity bills from 2027 and to double annual clean energy investment to over £30 billion by 2035. It also proposes closer cooperation with the EU on energy and carbon pricing to spur cross-border clean projects and reduce red tape for industry. (Source: Reuters)
3. World’s First Commercial E-Methanol Plant Opens in Denmark
Europe notched a green-fuel milestone with the opening of a Danish facility producing e-methanol—a synthetic methanol made from renewable hydrogen and captured CO—for use in shipping and plastics. The plant will produce 42,000 tonnes per year and cut associated emissions by up to 95%, while excess heat from production will warm thousands of local homes. (Source: Reuters)
🔎 Climate Change Impacts and Scientific Findings
1. Record-Breaking June Heat Hits Southern Europe
Early summer heatwaves blasted parts of Europe with unprecedented temperatures, as southern Spain and Portugal saw thermometers soar above 40 °C, reaching 42 °C in some areas and smashing early-June records. Forecasters warned that the heat would spread across France, Italy, and beyond, with widespread highs in the mid-30s and Rome bracing for 38 °C. (Source: The Guardian)
2. Climate Change Supercharges Rare UK Heatwave
Scientists calculate that a 32 °C heatwave hitting south-east England this weekend has been made 100 times more likely by human-driven climate change. Without global warming such heat would be expected only once in 2,500 years; researchers warn this “silent killer” event will likely cause a spike in heat-related deaths and criticize the UK’s lack of preparedness for extreme heat. (Source: The Guardian)
3. Only Two Years Left for 1.5 °C Carbon Budget
Leading climate researchers warn that at current global emission rates, the remaining carbon budget for a 66% chance of limiting warming to 1.5 °C will be exhausted in roughly two years. Breaching that threshold would accelerate catastrophic weather events and could force future generations to pull carbon from the atmosphere to restore a safer environment. (Source: The Guardian)
📈Climate Finance and Markets
1. EU Narrows Scope of Carbon Border Levy
EU countries agreed to scale back the new Carbon Border Adjustment Mechanism (CBAM) so that it will cover only —those responsible for ~99% of covered emissions. This change would exempt roughly 90% of importers (mostly small firms) from the carbon tariff, easing their burden without diluting the policy’s climate impact, and is expected to get final approval soon. (Source: Reuters)
2. EU Taps Carbon Market to Boost Green Jet Fuel
Brussels will use revenue from 20 million EU carbon permits to subsidize the purchase of over 200 million litres of costly sustainable aviation fuel, encouraging airlines to swap kerosene for cleaner alternatives. The subsidies (up to €6 per litre for synthetic e-fuels) could cover roughly 15% of current global SAF output; a significant push given sustainable fuel is 3–5 times more expensive than standard jet fuel. (Source: Reuters)
3. UK Races to Link Carbon Market with EU
Experts warn Britain is unlikely to integrate its carbon trading system with the EU’s by the 2026 deadline, risking roughly £800 million in annual carbon tariffs on UK exports under the EU’s border tax. Full UK–EU carbon market linkage could take until 2028–2030, according to analysts, so UK industries may seek interim exemptions to avoid steep costs in the meantime. (Source: Reuters)
🏛 Climate Policy and Regulations
1. Draft EU Climate Law Allows Limited Use of Carbon Offsets
A leaked draft of the EU’s 2040 climate law sets a target to cut emissions 90% below 1990 levels by 2040, while allowing countries to meet a small portion (roughly 3 percentage points, with the actual amount yet to be decided) of that goal via carbon credits from projects in developing countries. The proposal, due to be unveiled July 2, mirrors a German-led idea to ease the burden on domestic industry, but Europe’s climate advisers have warned that relying on international offsets could undermine EU decarbonization efforts. (Source: Politico Europe)
2. EU Shelves ‘Greenwashing’ Law Citing Burden on Small Business
Brussels hit pause on a proposed law that would ban vague or false “green” claims on products, after the European Commission signaled it may withdraw the plan amid a political backlash. Governments argued expanding the rules to ~30 million small firms would overburden them, reflecting a broader push to dial back some EU green regulations deemed too costly for industry. (Source: Reuters)
3. EU Reconsidering Methane Curbs to Safeguard LNG Imports
EU energy ministers are pushing the Commission to “simplify” a new methane emissions regulation, amid fears it could hinder imports of U.S. liquefied natural gas. Draft conclusions led by Poland suggest easing the methane monitoring rules to cut bureaucracy for businesses, even as environmental groups insist that digital tools exist to trace gas leaks and that climate safeguards should not be weakened. (Source: Reuters)