Lowering the “doom”

By John Allemang, Globe and Mail


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Changing our climate for the worse? That's the easy part. But changing human minds and behaviour — that turns out to be much, much harder.

No matter how much confidence scientists have in the truth of their global warnings, getting the message out to the folks who are actually wrecking the planet has proved to be a far more challenging proposition. Cars still jam the streets, energy consumption increases, polluters sow doubt and denial and, as the Copenhagen summit on climate change nears, politicians still prevaricate as if there were an endless succession of tomorrows.

While there may well be an apocalypse looming on the far horizon, dire prophecies just don't cut it in the here-and-now of consumer culture. So forget the grim 100-year predictions for a second. The crisis at this very moment seems more like a crisis of communication.

Even the chair of the David Suzuki Foundation, James Hoggan, agrees: "Whether it's the scientific community, environmental groups, politicians, the media or business leaders, we haven't done a great job of conveying accurate scientific information to the public on the risks of climate change — or, indeed, of even conveying what climate change is."

Over the decades the climate-change war has been waged, many tactics used to soften up the masses have been unproductive at best and downright discouraging at worst. Even if you believe doomsday is coming, is it really such a good idea to talk it up and wallow in the death and destruction that will result if we don't change our awful ways and acknowledge Al Gore's inconvenient truth?

Such pessimistic predictions may have seemed effective as a way of winning attention (and the Nobel). But if the goal is to motivate people to useful action, say those who are experienced in environmental communication, it calls for something new.

"People have a finite capacity for worry," says Mr. Hoggan, the author of Do the Right Thing: PR Tips for a Skeptical Public . "When you overwhelm people with catastrophe, you don't actually engage them — you just produce an emotional numbness."

That's an intellectual evolution that Mr. Suzuki himself has gone through. His widely viewed TV series The Nature of Things once tended to depict nature as a beautiful pristine thing that bad humans habitually destroyed. Even now, his enemies feel able to undermine his mainstream scientific views by dismissing him as a merchant of doom.

Yet the current incarnation of Mr. Suzuki, in keeping with his foundation's communication techniques, has shifted from the dependable jeremiads of old to a message of everyday hope and more immediate usefulness. Last year, he co-wrote David Suzuki's Green Guide, a book that comes to grips with climate change through small-scale lifestyle adjustments such as biodegradable carpeting and energy-efficient appliances.

"I believe that one has to keep warning [that] the signs are there, the science is in," Mr. Suzuki said when the book came out. "But I realized years ago that you can get people to respond to fear, but you can't sustain it, because it's too soul-destroying."

So what will people respond to when fear doesn't do it? Mark van Vugt is a psychologist who teaches at VU University Amsterdam, and he's part of an emerging group of cognitive scientists studying the sometimes uneasy relationship between climate-change messaging and the workings of the brain.

He says the announcements to be made by global leaders in Copenhagen are of much less consequence than the decisions that are being shaped in the complex minds of ordinary human beings.

"It's very hard to look at a climate-change conference as a primary driver of individual behaviour," Dr. van Vugt says. "Copenhagen is about political solutions, but the environmental issues remain inherently uncertain for most people. So what we have to do is translate these issues into something meaningful at the individual level."

Acquiring information is the basic way the brain deals with uncertainty, and with a subject as complex and contested as long-term climate change, Dr. van Vugt believes the best approach is to localize the discussion: Make it less about far-off glaciers, because people find it hard to cope with a problem they can't easily influence, and more about local parks, forests or air quality.

Any kind of message for change, he believes, must focus on personal identity and our need to belong: "We're influenced by significant others and want to look good to our neighbours and friends."

So a good way to persuade people to reduce electrical consumption is to let them compare their rates with the rest of the community: Have utility bills award a smiley face to those whose consumption is lower than their neighbours and a frowning face to those who are profligate. People then will reduce without any other external motivator, Dr. van Vugt says.

But good behaviour at the individual level won't last if institutional behaviour is untrustworthy — environmental groups must not overstate a threat; scientists can't be seen to adjust data, even in a good cause (as researchers from the International Panel on Climate Change were recently accused of doing); businesses must not act as though they're a law onto themselves; and governments can't preach one thing and then do another.

"Suppose it turns out that the recyclables and organics we've been sorting and separating are just being tossed into one big garbage heap — well, that's a recipe for disaster," Dr. van Vugt says. "You've created goodwill only to destroy it."

While environmentally friendly behaviours are often presented as something altruistic and selfless, he suggests that incentives are key to any successful strategy. "Our primary motivation is to get ahead of others, to see ourselves rewarded for good behaviour while bad behaviour gets punished." So it doesn't hurt to awaken some of this potential goodness by, say, offering a free bus pass for those prepared to be wooed to public transit.

At the same time, it's useful to make green products more luxurious rather than crafting an image of asceticism and self-conscious suffering. "A nice, well-made mountain bike can cost as much as a car and may become a status symbol for just that reason," Dr. van Vugt says. This is what psychologists refer to as signaling potential: Look at me, I'm green and rich and sexy.

Orthodox environmentalists may shudder at the thought, and question the ability of sexy status symbols to stop the seas from rising. Yet the attractiveness of self-denial has proved to be a hard sell to those used to the comforts of our present wastefulness.

"The evidence so far is profoundly against the notion of sacrifice as a success strategy," designer Bruce Mau says. "We've been saying for decades, 'Get out of your cars,' but in not one of those years have there been fewer cars."

For Mr. Mau, solving the problems of climate starts with smart design — carpeting with its own 1-800 number that you call when it needs recycling, a Tesla electric car that looks more beautiful than a Ferrari, and buses that come with cup holders so you don't feel like you're downgrading quite so much from your car.

"If you describe a sustainable future in negative terms," he says, "and if you highlight what it's going to cost them, people aren't going to move there. Doom-and-gloom is a dead end."

The beauty of sustainability has an undeniable appeal. But between the aesthetics and the ascetics of climate change, there's still a lot of room to manoeuvre. A considerable amount of public goodwill was arguably wasted by the campaign to switch from incandescent bulbs to stylish compact fluorescents, a relatively low-impact improvement.

Those who listened attentively to the noisy messaging that promoted the switch to the compact fluorescents may well feel like their effort was wasted — and their commitment could be harder to summon for a more significant shift, such as reducing beef consumption by half. Politicians, after all, fear beef-industry interests, while the incandescent-bulb lobby is relatively powerless.

As the director of the Center for Climate Change Communication at George Mason University in Virginia, Edward Maibach has studied the diverse effects of environmental messaging. He is convinced that changing human behaviour isn't as challenging as many people — certainly many politicians — now believe.

He can tell you from his polling data that when people are asked about changing their behaviour and reducing energy use in response to climate change, 40 per cent of those surveyed report it had no negative impact on their lives — and 30 per cent actually say it improved their quality of life.

From this, he concludes that "there's a collectivist spirit out there that's waiting to be reactivated. People are waiting to be asked to sacrifice. By and large, politicians are fearful about doing the right thing about greenhouses gases because they think they'll be thrown out of office. Yet we've shown that for every one person who'll get upset if you reduce emissions, two and a half will stand up and applaud."

Political leaders who resist the gospel of self-sacrifice like to talk instead about lucrative opportunities — all those Obama-esque "green jobs" to be found in building solar panels and wind farms, retrofitting drafty houses and remaking cities for public transit while (bonus points here) ending dependence on foreign oil.

They don't bother pointing out that our democracy-driven tentativeness has allowed a more decisive China to begin setting itself up as the leading producer of wind energy, solar-panel equipment and electric vehicles.

While waiting for our politicians to see the light, Dr. Maibach encourages citizens to take actions that make green behaviour appear to be the rule, not the exception. Individuals will give up in despair if they think they're engaged in a thankless task of changing the world on their own.

Hope and optimism come from a public display of commitment — Dr. Maibach cites simple school-based programs where parents ask fellow parents not to idle their cars while waiting for their children, explain the reasoning behind their request and perhaps offer a stick-on decal to those who will take the non-idling pledge.

He says the public pledge by itself makes it three times more likely that potential do-gooders will follow through on their good intentions. And from creating that kind of group effect, it then becomes easier to change public policy. "Once you can develop this behaviour and show it to be the social norm, it enables politicians to change the laws more easily."

That is certainly a tactic the David Suzuki Foundation is turning to in its messaging, especially as the Stephen Harper government has shied away from a commitment to environmentalists' cause. The foundation aims to work with government in a non-partisan way, and yet Mr. Hoggan says that when he goes to Copenhagen, "I'm going to tell the media exactly what I think about our government's failure on climate change."

Though the Prime Minister purports to speak for Canada, polls show that a majority of Canadians want stronger action from the government, and this allows groups such as the David Suzuki Foundation to appropriate the Team Canada brand — drawing attention to the negative international response Canada's policies generate internationally (Canadians hate being seen as bad guys) while featuring concerned athletes on the Suzuki website who will challenge Conservative climate policies from an educated-jock perspective (global warming means cancelled ski races).

And thus the Canadian environmental movement, far from being marginal or radical, is seen at its most patriotic and mainstream.

All these feel-good tactics may be useful in garnering more widespread support. But will they genuinely be effective in combating climate change?

The Young Greens of the Green Party don't seem to think so. They recently mounted a more outraged and outrageous 1960s-style campaign, with the support of Green Party Leader Elizabeth May, that used the attention-getting slogan, "Your parents f*cked up the planet — it's time to do something about it. Live green, vote Green."

So it's not all happy faces out there. David McKnight, a journalism professor at the University of New South Wales, criticizes environmentalists for being "a rather elite movement, aimed at symbolic actions to attract media attention and at lobbying government."

He believes (and many in the environmental movement would agree) that the most effective messaging will come from a broader-based movement, similar to the anti-war campaign of the 1960s, that puts hundreds of thousands of people on the streets.

Milan Ilnyckyj, an Ottawa-based blogger on environmental issues, argues that there should be a greater focus on the issue of morality, which is to say immorality.

"If we can accept that climate change causes harm to current and future generations," he writes, "the argument that polluters have some right to keep behaving as they have in the past weakens considerably."

Echoing that thought, William Rees of the University of British Columbia's School of Community and Regional Planning suggests that the international community should develop ways to prosecute governments for criminal negligence on environmental issues.

Still, even this approach presupposes that science and politics in the end can speak the same language. And that's an assumption that doesn't sit well with Kevin DeLuca, a professor of communications at the University of Utah.

"The raison d'être of science is doubt," he says. "But doubt is fatal in politics." Doubt opens the doors for debate about climate change, and endless debate prolongs inaction indefinitely.

Environmentalists look for ways to appeal to a mass audience, and come up with an upbeat message about satisfying self-interest and feeling good. "And so you end up with a spirit-of-the-apocalypse message veiled in a 'don't worry, be happy' conclusion," Prof. DeLuca notes.

He has no confidence in such a contrivance and, unlike most environmentalists, he says he can't put on a happy face even if strategy seems to demand it.

"The problem with the happy-face message is that the future isn't going to be happy. The Earth can get along without people - people can't get along without the Earth."

But that's a message no one wants to hear.

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Will Israeli power supply competition bring cheaper electricity?

Israel Electricity Reform Competition opens the supply segment to private suppliers, challenges IEC price controls, and promises consumer choice, marginal discounts, and market liberalization amid natural gas generation and infrastructure remaining with IEC.

 

Key Points

Policy opening 40% of supply to private vendors, enabling consumer choice and small discounts while IEC retains the grid.

✅ 40% of retail supply opened to private electricity suppliers

✅ IEC keeps meters, lines; tariffs still regulated by the authority

✅ Expected discounts near 7%, not dramatic price cuts initially

 

"See the pseudo-reform in the electricity sector: no lower prices, no opening the market to competition, and no choice of electricity suppliers, with a high rate for consumers despite natural gas." This is an advertisement by the Private Power Producers Forum that is appearing everywhere: Facebook, the Internet, billboards, and the press.

Is it possible that the biggest reform in the economy with a cost estimated by Israel Electric Corporation (IEC) (TASE: ELEC.B22) at NIS 7 billion is really a pseudo-reform? In contrast to the assertions by the private electricity producers, who are supposedly worried about our wallets and want to bring down the cost of electricity for us, the reform will open a segment of electricity supply to competition, as agreed in the final discussions about the reform. No less than 40% of this segment will be removed from IEC's exclusive responsibility and pass to private hands.

This means that in the not-too-distant future, one million households in Israel will be able to choose between different electricity suppliers. IEC will retain the infrastructure, with its meter and power lines, but for the first time, the supplier who sends the monthly bill to our home can be a private concern.

Up until now, the only regulatory agency determining the electricity rate in Israel was the Public Utilities Authority (electricity), i.e. the state. Now, in the framework of the reform, as a result of opening the supply segment to competition, private electricity producers will be able to offer a lower rate than IEC's, with mechanisms like electricity auctions shown to cut costs in some markets, while IEC's rate will still be controlled by the Public Utilities Authority (electricity).

This situation differs from the situation in almost all European countries, where the electricity market is fully open to competition and the EU is pursuing an electricity market revamp to address pricing challenges, with no electricity price controls and free switching by consumers between electricity producers, just as in the mobile phone market. This measure has not lowered electricity prices in Europe, where rates are higher than in Israel, which is in the bottom third of OECD countries in its electricity rate.

Regardless of reports, supply will be opened to competition and we will be able to choose between electricity suppliers in the future. Are the private electricity producers nevertheless right when they say that the electricity sector will not be opened to "real competition"?

 

What is obviously necessary is for the private producers to offer a substantially lower rate than IEC in order to attract as many new customers as possible and win their trust. Can the private producers offer a significantly lower rate than IEC? The answer is no, at least not in the near future. The teams handling the negotiations are aware of this. "The private supplier's price will not be significantly cheaper than IEC's controlled price; there will be marginal discounts," a senior government source explains. "What is involved here is another electricity intermediary, so it will not contribute to competition and lowering the price," he added.

There are already private electricity producers supplying electricity to large business customers - factories, shopping malls, and so forth - at a 7% discount. The rest of the electricity that they produce is sold to the system manager. When supply is opened to competition, it can be assumed that the private suppliers will also be able to offer a similar discount to private consumers.

Will a 7% discount cause a home consumer to leave reliable and familiar IEC for a private producer, given evidence from retail electricity competition in other markets? This is hard to know.

#google#

Why cannot private electricity producers offer a larger discount that will really break the monopoly, as their advertisement says they want to do? Chen Herzog, chief economist and partner at BDO Consulting, which is advising the Private Power Producers Forum, says, "Competition in supply requires the construction of competitive power plants that can compete and offer cheaper electricity.

"The power plants that IEC will sell in the reform, which will go on selling electricity to IEC, are outmoded, inefficient, and non-competitive. In addition, the producer will have to continue employing IEC workers in the purchased plants for at least five years. The producer will generate electricity in IEC power stations with IEC employees and additional overhead of a private producer, with factors such as cost allocation further shaping end-user rates. This amounts to being an IEC subcontractor in production. There is no saving on costs, so there will be no surplus to deduct from the consumer price," he adds.

The idea of opening supply to electricity market competition on such a large scale sounds promising, but saving on electricity for consumers still looks a long way off.

 

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Global CO2 emissions 'flatlined' in 2019, says IEA

2019 Global CO2 Emissions stayed flat, IEA reports, as renewable energy growth, wind and solar deployment, nuclear output, and coal-to-gas switching in advanced economies offset increases elsewhere, supporting climate goals and clean energy transitions.

 

Key Points

33 gigatonnes, unchanged YoY, as advanced economies cut power emissions via renewables, gas, and nuclear.

✅ IEA reports emissions flat at 33 Gt despite 2.9% GDP growth

✅ Advanced economies cut power-sector CO2 via wind, solar, gas

✅ Nuclear restarts and mild weather aided reductions

 

Despite widespread expectations of another increase, global energy-related CO2 emissions stopped growing in 2019, according to International Energy Agency (IEA) data released today. After two years of growth, global emissions were unchanged at 33 gigatonnes in 2019, a notable marker in the global energy transition narrative even as the world economy expanded by 2.9%.

This was primarily due to declining emissions from electricity generation in advanced economies, thanks to the expanding role of renewable sources (mainly wind and solar across many markets), fuel switching from coal to natural gas, and higher nuclear power generation, the Paris-based organisation says in the report.

"We now need to work hard to make sure that 2019 is remembered as a definitive peak in global emissions, not just another pause in growth," said Fatih Birol, the IEA's executive director. "We have the energy technologies to do this, and we have to make use of them all."

Higher nuclear power generation in advanced economies, particularly in Japan and South Korea, avoided over 50 Mt of CO2 emissions. Other factors included milder weather in several countries, and slower economic growth in some emerging markets. In China, emissions rose but were tempered by slower economic growth and higher output from low-carbon sources of electricity. Renewables continued to expand in China, and 2019 was also the first full year of operation for seven large-scale nuclear reactors in the country.

A significant decrease in emissions in advanced economies in 2019 offset continued growth elsewhere. The USA recorded the largest emissions decline on a country basis, with a fall of 140 million tonnes, or 2.9%. US emissions are now down by almost 1 gigatonne from their peak in 2000. Emissions in the European Union fell by 160 million tonnes, or 5%, in 2019 driven by reductions in the power sector as electricity producers move away from coal in the generation mix. Japan’s emissions fell by 45 million tonnes, or around 4%, the fastest pace of decline since 2009, as output from recently restarted nuclear reactors increased.

Emissions in the rest of the world grew by close to 400 million tonnes in 2019, with almost 80% of the increase coming from countries in Asia where coal-fired power generation continued to rise, and in Australia emissions rose 2% due to electricity and transport. Coal-fired power generation in advanced economies declined by nearly 15%, reflecting a sharp fall in coal-fired electricity across multiple markets, as a result of growth in renewables, coal-to-gas switching, a rise in nuclear power and weaker electricity demand.

The IEA will publish a World Energy Outlook Special Report in June that will map out how to cut global energy-related carbon emissions by one-third by 2030 and put the world on track for longer-term climate goals, a pathway that, in Canada, will require more electricity to hit net-zero. It will also hold an IEA Clean Energy Transitions Summit in Paris on 9 July, bringing together key government ministers, CEOs, investors and other major stakeholders.

Birol will discuss the results published today tomorrow at an IEA Speaker Series event at its headquarters with energy and climate ministers from Poland, which hosted COP24 in Katowice; Spain, which hosted COP25 in Madrid; and the UK, which will host COP26 in Glasgow this year, as greenhouse gas concentrations continue to break records worldwide.

 

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Toronto Power Outages Persist for Hundreds After Spring Storm

Toronto Hydro Storm Outages continue after strong winds and heavy rain, with crews restoring power, clearing debris and downed lines. Safety alerts and real-time updates guide affected neighborhoods via website and social media.

 

Key Points

Toronto Hydro Storm Outages are weather-related power cuts; crews restore service safely and share public updates.

✅ Crews prioritize areas with severe damage and limited access

✅ Report downed power lines; keep a safe distance

✅ Check website and social media for restoration updates

 

In the aftermath of a powerful spring storm that swept through Toronto on Tuesday, approximately 400 customers remain without power as of Sunday. The storm, which brought strong winds and heavy rain that caused severe flooding in some areas, led to significant damage across the city, including downed trees and power lines. Toronto Hydro crews have been working tirelessly to restore service, similar to efforts by Sudbury Hydro crews in Northern Ontario, focusing on areas with the most severe damage. While many customers have had their power restored, the remaining outages are concentrated in neighborhoods where access is challenging due to debris and fallen infrastructure.

Toronto Hydro has assured residents that restoration efforts are ongoing and that they are prioritizing safety and efficiency, in step with recovery from damaging storms in Ontario across the province. The utility company has urged residents to report any downed power lines and to avoid approaching them, as they may still be live and dangerous, and notes that utilities sometimes rely on mutual aid deployments to speed restoration in large-scale events. Additionally, Toronto Hydro has been providing updates through their website and social media channels, keeping the public informed about the status of power restoration in affected areas.

The storm's impact has also led to disruptions in other services, and power outages in London disrupted morning routines for thousands earlier in the week. Some public transportation routes experienced delays due to debris on tracks, and several schools in the affected areas were temporarily closed. City officials are coordinating with various agencies to address these issues and ensure that services return to normal as quickly as possible, even as Quebec contends with widespread power outages after severe windstorms.

Residents are advised to stay updated on the situation through official channels and to exercise caution when traveling in storm-affected areas. Toronto Hydro continues to work diligently to restore power to all customers and appreciates the public's patience during this challenging time, a challenge echoed when Texas utilities struggled to restore power during Hurricane Harvey.

 

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California proposes income-based fixed electricity charges

Income Graduated Fixed Charge aligns CPUC billing with utility fixed costs, lowers usage rates, supports electrification, and shifts California investor-owned utilities' electric bills by income, with CARE and Climate Credit offsets for low-income households.

 

Key Points

A CPUC proposal: an income-based monthly fixed fee with lower usage rates to align costs and aid low-income customers.

✅ Income-tiered fixed fees: $0-$42; CARE: $14-$22, by utility territory

✅ Usage rates drop 16%-22% to support electrification and cost-reflective billing

✅ Lowest-income save ~$10-$20; some higher earners pay ~$10+ more monthly

 

The Public Advocates Office (PAO) for the California Public Utilities Commission (CPUC) has proposed adding a monthly income-based fixed charge on electric utility bills based on income level.  

The rate change is designed to lower bills for the lowest-income residents while aligning billing more directly with utility costs. 

PAO’s recommendation for the Income Graduated Fixed Charge places fees between $22 and $42 per month in the three major investor-owned utilities’ territories, including an SDG&E minimum charge debate under way, for customers not enrolled in the California Alternative Rates for Energy (CARE) program. As seen below, CARE customers would be charged between $14 per month and $22 a month, depending on income level and territory.

For households earning $50,000 or less per year, the fixed charge would be $0, but only if the California Climate Credit is applied to offset the fixed cost.

Meanwhile, usage-based electricity rates are lowered in the PAO proposal, part of major changes to electric bills statewide. Average rates would be reduced between 16% to 22% for the three major investor-owned utilities.

The lowest-income bracket of Californians is expected to save roughly $10 to $20 a month under the proposal, while middle-income customers may see costs rise by about $20 a month, even as lawmakers seek to overturn income-based charges in Sacramento.

“We anticipate the vast majority of low-income customers ($50,000 or less per year) will have their monthly bills decrease by $10 or more, and a small proportion of the highest income earners ($100,000+ per year) will see their monthly bills rise by $10 or more,” said the PAO.

The charges are an effort to help suppress ever-increasing electricity generation and transmission rates, which are among the highest in the country, with soaring electricity prices reported across California. Rates are expected to rise sharply as wildfire mitigation efforts are implemented by the utilities found at fault for their origin.

“We are very concerned. However, we do not see the increases stopping at this point,” Linda Serizawa, deputy director for energy, PAO, told pv magazine. “We think the pace and scale of the [rate] increases is growing faster than we would have anticipated for several years now.”

Consumer advocates and regulators face calls for action on surging electricity bills across the state.

The proposed changes are also meant to more directly couple billing with the fixed charges that utilities incur, as California considers revamping electricity rates to clean the grid. For example, activities like power line maintenance, energy efficiency programs, and wildfire prevention are not expected to vary with usage, so these activities would be funded through a fixed charge.

Michael Campbell of the PAO’s customer programs team, and leader of the proposed program, likened paying for grid enhancements and other social programs with utility rate increases to “paying for food stamps by taxing food.” Instead, a fixed charge would cover these costs.

PAO said the move to lower rates for usage should help encourage electrification as California moves to replace heating and cooling, appliances, and gas combustion cars with electrified counterparts. In addition, lower rates mean the cost burden of running these devices is improved.

 

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Hungary's Quiet Alliance with Russia in Europe's Energy Landscape

Hungary's Russian Energy Dependence underscores EU tensions, as TurkStream gas flows, discounted imports, and pipeline reliance challenge sanctions, energy security, diversification, and decoupling goals amid Ukraine war pressures and bloc unity concerns.

 

Key Points

It is Hungary's reliance on Russian gas and oil via TurkStream, complicating EU sanctions and energy independence.

✅ 85% gas, 60% oil imports from Russia via TurkStream pipelines.

✅ Discounted contracts seldom cut bills; security cited by Budapest.

✅ EU decoupling targets hampered; sanctions leverage and unity erode.

 

Hungary's energy policies have positioned it as a notable outlier within the European Union, particularly in the context of the ongoing geopolitical tensions stemming from Russia's invasion of Ukraine. While the EU has been actively working to reduce its dependence on Russian energy sources through an EU $300 billion plan to dump Russian energy, Hungary has maintained and even strengthened its energy ties with Moscow, raising concerns about EU unity and the effectiveness of sanctions.

Strategic Energy Dependence

Hungary's energy infrastructure is heavily reliant on Russian supplies. Approximately 85% of Hungary's natural gas and more than 60% of its oil imports originate from Russia. This dependence is facilitated through pipelines such as TurkStream, which delivers Russian gas to Hungary via Turkey and the Balkans amid Europe's energy nightmare over price volatility and security. In 2025, Hungary's gas imports through TurkStream are projected to reach 8 billion cubic meters, a significant increase from previous years. These imports are often secured at discounted rates, although such savings may not always be passed on to Hungarian consumers.

Political and Economic Considerations

Prime Minister Viktor Orbán has been a vocal critic of EU sanctions against Russia and has consistently blocked EU initiatives aimed at providing military aid to Ukraine, even as Ukraine leans on power imports to keep the lights on. His government argues that Russia's military capabilities make it an unyielding adversary and that a ceasefire would only solidify its territorial gains. Orbán's stance has led to Hungary's isolation within the EU on matters related to the conflict in Ukraine.

Economically, Hungary's reliance on Russian energy has been justified by the government as a means to maintain low energy prices for consumers and ensure energy security. However, critics argue that this strategy undermines EU efforts to achieve energy independence and reduces the bloc's leverage over Russia amid a global energy war marked by price hikes and instability.

EU's Response and Challenges

The European Union has set ambitious goals to reduce its reliance on Russian energy, aiming to halt imports of Russian natural gas by the end of 2027 and prohibit new contracts starting in 2025 while exploring gas price cap strategies to contain market volatility. However, Hungary's continued imports of Russian energy complicate these efforts. The TurkStream pipeline, in particular, has become a focal point in discussions about the EU's energy strategy, as it enables ongoing Russian gas exports to Europe despite the bloc's broader decoupling initiatives.

Hungary's actions have raised concerns among other EU member states about the effectiveness of the sanctions regime and the potential for other countries to exploit similar loopholes. There are calls for stricter policies, including banning spot gas purchases and enforcing traceability of gas origins, and consideration of emergency measures to limit electricity prices to ensure genuine energy independence and reduce overreliance on external suppliers.

Hungary's steadfast energy relationship with Russia presents a significant challenge to the European Union's collective efforts to reduce dependence on Russian energy sources. While Hungary argues that its energy strategy is in the national interest, it risks undermining EU solidarity and the bloc's broader geopolitical objectives. As the EU continues to navigate its energy transition and response to the ongoing conflict in Ukraine, including energy ceasefire violations reported by both sides, Hungary's position will remain a critical point of contention within the union.

 

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Mercury in $3 billion takeover bid for Tilt Renewables

Mercury Energy Tilt Renewables acquisition signals a trans-Tasman energy push as PowAR and Mercury split assets via a scheme of arrangement, offering $7.80 per share and a $2.96b valuation across Australia and New Zealand.

 

Key Points

A PowAR-Mercury deal to buy Tilt Renewables, splitting Australian and New Zealand assets via a court-approved scheme.

✅ $7.80 per share, valuing Tilt at $2.96b

✅ PowAR takes AU assets; Mercury gets NZ business

✅ Infratil and Mercury to vote for the scheme

 

Mercury Energy and an Australian partner appear to have won the race to buy Tilt Renewables, an Australasian wind farm developer which was spun out of TrustPower, bidding almost $3 billion, amid wider utility consolidation such as the Peterborough Distribution sale to Hydro One.

Yesterday Tilt Renewables announced that it had entered a scheme implementation agreement under which it was proposed that PowAR would acquire its Australian business and Mercury would acquire the New Zealand business, mirroring cross-border approvals where U.S. antitrust clearance shaped Hydro One's bid for Avista.

Conducted through a scheme of arrangement, Tilt shareholders will be offered $7.80 a share, valuing Tilt at $2.96b.

Yesterday morning shares in Tilt opened about 18 per cent up at $7.65, though regulatory outcomes can swing valuations as seen when Hydro One-Avista reconsideration of a U.S. order came into play.

In early December Infratil, which owns around two thirds of Tilt's shares, announced it was undertaking a review of its investment after receiving approaches, with investor sentiment sensitive to governance shifts as when Hydro One shares fell after leadership changes in Ontario.

According to a report in the Australian Financial Review, the transtasman bid beat out other parties including ASX-listed APA Group, Canadian pension fund CDPQ and Australian fund manager Infrastructure Capital Group, as Canadian investors like Ontario Teachers' Plan pursue similar infrastructure deals.

“This compelling acquisition proposal is a result of Tilt Renewables’ constant focus on delivering long-term value for shareholders and the board is pleased that, with these new owners, the transition to renewables in Australia and New Zealand will continue to accelerate,” Tilt’s chairman Bruce Harker said.

Comparable community-led clean energy partnerships, such as initiatives with British Columbia First Nations highlighted in clean-energy generation, underscore the broader momentum.

Just prior to the announcement, Tilt shares had been trading for less than $4. Such repricing reflects how utilities can face perceived uncertainties, as one investor argued too many unknowns at the time.

Mercury is already Tilt’s second largest shareholder, at just under 20 per cent. Both Infratil and Mercury have agreed to vote in favour of the scheme. The deal values Tilt’s New Zealand business at $770m, however the value of Mercury’s existing shareholding is around $585m, meaning the company will increase debt by around $185m.

 

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