China rejects emission caps that hobble economy

By Reuters


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China aims to nearly halve by 2020 the amount of greenhouse gases it emits for every U.S. dollar of its economy, but will reject strict caps for decades, according to a copy of a national global warming assessment shown to Reuters.

Beijing has been reticent about what the world's number-two carbon emitter – the United States is number one – would be prepared to do to tackle global warming.

The Chinese report shows officials believe warming is a serious threat but suggests they do not want to take preventive steps that hobble economic growth.

China's first review of the problems posed by a hotter planet proposes an even more ambitious goal of an 80 per cent cut in "carbon intensity" by 2050, from 2000 levels, but states that emissions per person are likely to top projected developed-nation levels before starting to fall.

If the target was made official, China would be the first major developing country to set long-term goals for braking rising emissions, as urged by the European Union and other industrialized nations that back the Kyoto Protocol. The U.S. does not.

"Before generally accomplishment of modernization by the middle of the 21st century, China should not undertake absolute and compulsory emission reduction obligations," said a translated summary of the report, shown to Reuters.

The document was drafted over four years in consultation with powerful ministries, suggesting a broad official consensus. The final version, which gives no figures for total current or future emissions, is not yet approved for publication. It is separate from a national plan on climate change Beijing is set to unveil.

Cutting emissions per unit of national income represents a rare convergence of views in China and the U.S.

American President George W. Bush has repeatedly said carbon emissions should be measured in conjunction with U.S. economic growth. He has urged industry to cut its emissions intensity, voluntarily, by 18 per cent by 2012.

Some states, including California, are planning emissions trading schemes without federal backing to speed their responses to global warming.

Beijing aims for an initial cut in carbon intensity of 40 per cent by 2020 through measures ranging from expanding forests to boosting renewable energy, the report said.

By then, temperatures may be as much as 2.1 Celsius above averages for 1961 to 1990, and could start straining food and water supplies. It notes ground temperatures have increased 1.1 C in the past 50 years.

"Due to its highly fragile ecological environment, long coast-lines and low per capita resource... China is extremely vulnerable to the negative impacts of climate change," it states. With pollution and resource problems an increasing constraint on the economy, Premier Wen Jiabao put green growth at the centre of his address to the ruling Communist congress this year.

The European Union and other rich nations bound by the Kyoto Protocol want developing countries to start braking the rise in greenhouse gas emissions beyond 2012.

A recent United Nations report warned of the dire impacts of global warming, from hunger in Africa to fast thaw in the Himalayas and polar regions, but in negotiations leading to its approval, Chinese officials and scientists raised doubts and tried to underplay some findings.

The blueprint indicates Beijing's skepticism about some scientific claims on warming is being used to justify resistance to mandatory emission caps.

China argues rich nations pumped out the majority of carbon dioxide in the atmosphere when they industrialized, and should cut their emissions rather than pushing for caps that constrict other nations' growth.

The assessment advises holding to that position until about 2050 when Chinese average income is projected to surpass the equivalent of $10,000 (US).

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B.C. Diverting Critical Minerals, Energy from U.S

Canadian Softwood Lumber Tariffs challenge British Columbia's forestry sector, strain U.S.-Canada trade, and risk redirecting critical minerals and energy resources, threatening North American supply chains, manufacturing, and energy security across integrated markets.

 

Key Points

Duties imposed by the U.S. on Canadian lumber, affecting BC forestry, trade flows, and North American energy security.

✅ U.S. duties strain BC forestry and cross-border supply chains

✅ Risks redirecting critical minerals and energy exports

✅ Tariff rollback could bolster North American energy security

 

British Columbia Premier David Eby has raised concerns that U.S. tariffs on Canadian softwood lumber are prompting the province to redirect its critical minerals and energy resources, while B.C. challenges Alberta's electricity export restrictions domestically, away from the United States. In a recent interview, Eby emphasized the broader implications of these tariffs, suggesting they could undermine North American energy security and put electricity exports at risk across the border.

Since 2017, the U.S. Department of Commerce has imposed tariffs on Canadian softwood lumber imports, alleging that Canadian producers benefit from unfair subsidies. These duties have been a persistent source of tension between the two nations, coinciding with Canadian support for energy and mineral tariffs and significantly impacting British Columbia's forestry sector—a cornerstone of the province's economy.

Premier Eby highlighted that the financial strain imposed by these tariffs not only jeopardizes the Canadian forestry industry but also has unintended repercussions for the United States. He pointed out that the economic challenges faced by Canadian producers might lead them to seek alternative markets for their critical minerals and energy resources, as tariff threats boost support for Canadian energy projects domestically, thereby reducing the supply to the U.S. British Columbia is endowed with an abundance of critical minerals essential for various industries, including technology and defense.

The potential redirection of these resources could have significant consequences for American industries that depend on a stable and affordable supply of critical minerals and energy. Eby suggested that the tariffs might incentivize Canadian producers to explore other international markets, even as experts advise against cutting Quebec's energy exports amid the tariff dispute, diminishing the availability of these vital resources to the U.S.

In light of these concerns, Premier Eby has advocated for a reassessment of the tariffs, urging a more cooperative approach between Canada and the United States. He contends that eliminating the tariffs would be mutually beneficial, aligning with views that Biden is better for Canada's energy sector and cross-border collaboration, ensuring a consistent supply of critical resources and fostering economic growth in both countries.

The issue of U.S. tariffs on Canadian softwood lumber remains complex and contentious, with far-reaching implications for trade relations and resource distribution between the two nations. As discussions continue, stakeholders on both sides of the border are closely monitoring the situation, noting that Ford has threatened to cut U.S. electricity exports amid trade tensions, recognizing the importance of collaboration in addressing shared economic and security challenges.

 

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Saskatchewan to credit solar panel owners, but not as much as old program did

Saskatchewan Solar Net Metering Program lets rooftop solar users offset at retail rate while earning 7.5 cents/kWh credits for excess energy; rebates are removed, SaskPower balances grid costs with a 100 kW cap.

 

Key Points

An updated SaskPower plan crediting rooftop solar at 7.5 cents/kWh, offsetting usage at retail rate, without rebates.

✅ Excess energy credited at 7.5 cents/kWh

✅ Offsets on-site use at retail electricity rates

✅ Up to 100 kW generation; no program capacity cap

 

Saskatchewan has unveiled a new program that credits electricity customers for generating their own solar power, but it won’t pay as much as an older program did or reimburse them with rebates for their costs to buy and install equipment.

The new net metering program takes effect Nov. 1, and customers will be able to use solar to offset their own power use at the retail rate, similar to UK households' right to sell power in comparable schemes, though program details differ.

But they will only get 7.5 cents per kilowatt hour credit on their bills for excess energy they put back into the grid, as seen in Duke Energy payment changes in other jurisdictions, rather than the 14 cents in the previous program.

Dustin Duncan, the minister responsible for Crown-owned SaskPower, says the utility had to consider the interests of people wanting to use rooftop solar and everyone else who doesn’t have or can’t afford the panels, who he says would have to make up for the lost revenue.

Duncan says the idea is to create a green energy option, with wind power gains highlighting broader competitiveness, while also avoiding passing on more of the cost of the system to people who just cannot afford solar panels of their own.

Customers with solar panels will be allowed to generate up to 100 kilowatts of power against their bills.

“It’s certainly my hope that this is going to provide sustainability for the industry, as illustrated by Alberta's renewable surge creating jobs, that they have a program that they can take forward to their potential customers, while at the same time ensuring that we’re not passing onto customers that don’t have solar panels more cost to upkeep the grid,” Duncan said Tuesday.

Saskatchewan NDP leader Ryan Meili said he believes eliminating the rebate and cutting the excess power credit will kill the province’s solar energy, a concern consistent with lagging solar demand in Canada in recent national reports, he said.

“(Duncan) essentially made it so that any homeowner who wants to put up panels would take up to twice as long to pay it back, which effectively prices everybody in the small part of the solar production industry — the homeowners, the farms, the small businesses, the small towns — out of the market,” Meili said.

The province’s old net metering program hit its 16 megawatt capacity ahead of schedule, forcing the program to shut down, while disputes like the Manitoba Hydro solar lawsuit have raised questions about program management elsewhere. It also had a rebate of 20 per cent of the cost of the system, but that rebate has been discontinued.

The new net metering program won’t have any limit on program capacity, or an end date.

According to Duncan, the old program would have had a net negative impact to SaskPower of about $54 million by 2025, but this program will be much less — between $4 million and $5 million.

Duncan said other provinces either have already or are in the process of moving away from rebates for solar equipment, including Nova Scotia's proposed solar charge and similar reforms, and away from the one-to-one credits for power generation.

 

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Australia stuck in the middle of the US and China as tensions rise

Manus Island Naval Base strengthens US-Australia-PNG cooperation at Lombrum, near the South China Sea, bolstering sovereignty, maritime rights, and Pacific security amid APEC talks, infrastructure investment, and Belt and Road competition.

 

Key Points

A US-Australia-PNG facility at Lombrum to bolster Pacific security and protect maritime rights across the region.

✅ Shared by US, Australia, and PNG at Lombrum on Manus Island

✅ Near South China Sea, reinforcing maritime security and access

✅ Counters opaque lending, aligns with free trade and infrastructure

 

Scott Morrison has caught himself bang in the middle of escalating tensions between the United States and China.

The US and Australia will share a naval base in the north end of Papua New Guinea on Manus Island, creating another key staging point close to the contested South China Sea.

“The United States will partner with Papua New Guinea and Australia on their joint initiative at Lombrum Naval Base,” US Vice President Mike Pence said.

“We will work with these two nations to protect sovereignty and maritime rights in the Pacific Islands. ”

At an Asia Pacific Economic Cooperation meeting in Port Moresby on Saturday, Mr Morrison urged nations to embrace free trade and avoid “unsustainable debt”, as the Philippines' clean energy commitment also featured in discussions.

He confirmed the US and Australia will share an expanded naval base on Manus Island, as the US ramped up rhetoric against China.

Mr Pence quoted President Donald Trump in his speech following Chinese President Xi Jinping, even as a Biden energy agenda is seen by some as better for Canada.

“We have great respect for President Xi and respect for China. But in the president’s words, China’s taken advantage of the United States for many, many years,” he said.

“And those days are over.”

His speech was met with stony silence from the Chinese delegation, after President Xi had reassured leaders his Belt and Road Initiative was not a debt trap.

China has also been at loggerheads with the United States over its territorial ambitions in the Pacific, encapsulated by Xi’s Belt and Road Initiative.

Unveiled in 2013, the Belt and Road initiative aims to bolster a sprawling network of land and sea links with Southeast Asia, Central Asia, the Middle East, Europe and Africa.

China’s efforts to win friends in the resource-rich Pacific have been watched warily by the traditionally influential powers in the region — Australia and the United States.

“It is not designed to serve any hidden geopolitical agenda,” President Xi said on Saturday.

“Nor is it a trap, as some people have labelled it.”

But Mr Pence said loans to developing countries were too often opaque and encouraged nations to look to the US instead of China.

“Too often they come with strings attached and lead to staggering debt,” he said in his speech.

“Do not accept foreign debt that could compromise your sovereignty.

“Just like America, always put your country first.”

Mr Morrison committed Australia to look to the Pacific nations and on Sunday he will host an informal BBQ with Pacific leaders, amid domestic moves like Western Australia's electricity bill credit for households.

He also announced a joint partnership with Japan and the US to fund infrastructure around the region, while at home debates over an electricity market overhaul continue.

On the back of Mr Morrison’s defence of free trade at the summit, Australian Trade Minister Simon Birmingham said he was confident the US was interested in an open trading environment in the long run, with parallel discussions such as a U.S.-Canada energy partnership underscoring regional economic ties.

Australia is hoping the US will, in the end, take a similar approach to its trade dispute with China as it did with its tariff threats against Mexico and Canada, as cross-border negotiations like the Columbia River Treaty continue to shape U.S.-Canada ties.

“Ultimately, they laid down arms, they walked away from threats, and they struck a new trade deal that ensures trade continues in that North American bloc,” Mr Birmingham told ABC TV on Sunday.

“We hope the same will happen in relation to China.”

Four countries including the US have signed up to an effort to bring electricity to 70 per cent of Papua New Guinea’s people by 2030.

Australia, Japan, the US and New Zealand on Sunday signed an agreement to work with Papua New Guinea’s government on electrification.

It’s the latest sign of great power rivalry in the South Pacific, where China is vying with the US and its allies for influence.

 

 

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Electricity prices in Germany nearly doubled in a year

Germany Energy Price Hikes are driving electricity tariffs, gas prices, and heating costs higher as wholesale markets surge after the Ukraine invasion; households face inflationary pressure despite relief measures and a renewables levy cut.

 

Key Points

Germany Energy Price Hikes reflect surging power and gas tariffs from wholesale spikes, prompting relief measures.

✅ Electricity tariffs to rise 19.5% in Apr-Jun

✅ Gas tariffs up 42.3%; heating and fuel costs soar

✅ Renewables levy ends July; saves €6.6 billion yearly

 

Record prices for electricity and gas in Germany will continue to rise in the coming months, the dpa agency, citing estimates from the consumer portal Verivox.

According to him, electricity suppliers and local utilities, in whose area of ​​responsibility there are 13 million households, made an announcement of tariff increases in April, May and June by 19.5%. Gas tariffs increased by an average of 42.3%.

According to Verivox, electricity prices in Germany have approximately doubled over the year - a pattern seen as European electricity prices rose more than double the EU average - if previously a household with a consumption of 4,000 kWh paid 1,171 euros a year, now the amount has risen to 1,737 euros. Gas prices have risen even more, though European gas prices later returned to pre-Ukraine war levels: last year, a household with a consumption of 20,000 kWh paid 1,184 euros in annual terms, and now it is 2,787 euros. 

Energy costs for the average German household are 52 percent higher than a year ago, adding to EU inflation pressures, according to energy contract sales website Check24. In a press release, the company said the wholesale electricity price was at €122.93 per megawatt-hour in February 2022, compared to €49 this time last year, while in the United States US electricity prices climbed at the fastest pace in 41 years. In addition, electricity prices on the power exchange haven been rising rapidly since Russian troops invaded Ukraine, comparison portal Strom Report said. Costs for heating rose the most, triggered by the high gas price (105 euros per megawatt-hour on the wholesale market) and around 100 USD per barrel of oil – its highest price since 2014. Driving also became more expensive with costs for petrol up 25 percent and diesel 30 percent, Check24 said.

The German government has decided on relief measures for low-income households, including a 200 billion euro energy shield, in response to high consumer energy costs. In July, it will abolish the renewables levy on the power price, saving consumers around €6.6 billion annually. In a reform proposal released this week, the ministry for economy and climate also detailed how it will legally oblige power suppliers to reduce their power bills when the levy is abolished.

 

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Is Hydrogen The Future For Power Companies?

Hydrogen Energy Transition accelerates green hydrogen, electrolyzers, renewables, and fuel cells, as the EU and US scale decarbonization, NextEra tests hydrogen-to-power, and DOE funds pilots to replace natural gas and cut CO2.

 

Key Points

A shift to deploy green hydrogen tech to decarbonize power, industry, and transport across EU and US energy systems.

✅ EU targets 40 GW electrolyzers plus 40 GW imports by 2030

✅ DOE funds pilots; NextEra trials hydrogen-to-power at Okeechobee

✅ Aims to replace natural gas, enable fuel cells, cut CO2

 

Last month, the European Union set out a comprehensive hydrogen strategy as part of its goal to achieve carbon neutrality for all its industries by 2050. The EU has an ambitious target to build out at least 40 gigawatts of electrolyzers within its borders by 2030 and also support the development of another 40 gigawatts of green hydrogen in nearby countries that can export to the region by the same date. The announcement came as little surprise, given that Europe is regarded as being far ahead of the United States in the shift to renewable energy, even as it looks to catch up on fuel cells with Asian leaders today.

But the hydrogen bug has finally arrived stateside: The U.S. Department of Energy has unveiled the H2@Scale initiative whereby a handful of companies including Cummins Inc. (NYSE: CMI), Caterpillar Inc.(NYSE: CAT), 3M Company (NYSE: MMM), Plug Power Inc.(NASDAQ: PLUG) and EV startup Nikola Corp.(NASDAQ: NKLA), even as the industry faces threats to the EV boom that investors are watching, will receive $64 million in government funding for hydrogen research projects.

Hot on the heels of the DoE initiative: American electric utility and renewable energy giant, NextEra Energy Inc.(NYSE: NEE), has unveiled an equally ambitious plan to start replacing its natural gas-powered plants with hydrogen.

During its latest earnings call, NextEra’s CFO Rebecca Kujawa said the company is “…particularly excited about the long-term potential of hydrogen” and discussed plans to start a pilot hydrogen project at one of its generating stations at Okeechobee Clean Energy Center owned by its subsidiary, Florida Power & Light (FPL). NextEra reported Q2 revenue of $4.2B (-15.5% Y/Y), which fell short of Wall Street’s consensus by $1.12B while GAAP EPS of $2.59 (+1.1% Y/Y) beat estimates by $0.09. The company attributed the big revenue slump to the effects of Covid-19.

Renewable energy and hydrogen stocks have lately become hot property as EV adoption hits an inflection point worldwide, with NEE up 16% in the year-to-date; PLUG +144%, Bloom Energy Corp. (NYSE: BE) +62.8% while Ballard Power Systems (NASDAQ: BLDP) has gained 98.2% over the timeframe.

NextEra’s usual modus operandi involves conducting small experiments with new technologies to establish their cost-effectiveness, a pragmatic approach informed by how electricity changed in 2021 across the grid, before going big if the trials are successful.

CFO Kujawa told analysts:
“Based on our ongoing analysis of the long-term potential of low-cost renewables, we remain confident as ever that wind, solar, and battery storage will be hugely disruptive to the country’s existing generation fleet, while reducing cost for customers and helping to achieve future CO2 emissions reductions. However, to achieve an emissions-free future, we believe that other technologies will be necessary, and we are particularly excited about the long-term potential of hydrogen.”

NextEra plans to test the electricity-to-hydrogen-to-electricity model at its natural gas-powered Okeechobee Clean Energy Center that came online in 2019. Okeechobee is already regarded as one of the cleanest thermal energy facilities anywhere on the globe. However, replacing natural gas with zero emissions hydrogen would be a significant step in helping the company achieve its goal to become 100% emissions-free by 2050.

Kujawa said the company plans to continue evaluating other potential hydrogen opportunities to accelerate the decarbonization of transportation fuel, amid the debate over the future of vehicles between electricity and hydrogen, and industrial feedstock and also support future demand for low-cost renewables.

Another critical milestone: NextEra finished the quarter with a renewables backlog of approximately 14,400 megawatts, its largest in its 20-year development history. To put that backlog into context, NextEra revealed that it is larger than the operating wind and solar portfolios of all but two companies in the world.

Hydrogen Bubble?
That said, not everybody is buying the hydrogen hype.

Barron’s Bill Apton says Wall Street has discovered hydrogen this year and that hydrogen stocks are a bubble, even as hybrid vehicles gain momentum in the U.S. market according to recent reports. Apton says the huge runup by Plug Power, Ballard Energy, and Bloom Energy has left them trading at more than 50x future cash flow, making it hard for them to grow into their steep valuations. He notes that smaller hydrogen companies are up against big players and deep-pocketed manufacturers, including government-backed rivals in China and the likes of Cummins.

According to Apton, it could take a decade or more before environmentally-friendly hydrogen can become competitive with natural gas on a cost-basis, while new ideas like flow battery cars also vie for attention, making hydrogen stocks better long-term picks than the cult stocks they have become.

 

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Diesel Prices Return to Pre-Ukrainian Conflict Levels

France Diesel Prices at Pre-Ukraine Levels reflect energy market stabilization as supply chains adapt and subsidies help; easing fuel costs, inflation, and logistics burdens for households, transport firms, and the wider economy.

 

Key Points

They mark normalization as oil supply stabilizes, easing fuel costs and logistics expenses for consumers and firms.

✅ Lower transport and logistics operating costs

✅ Softer inflation and improved household budgets

✅ Market stabilization amid adjusted oil supply chains

 

In a significant development for French consumers and businesses alike, diesel prices in France have recently fallen back to levels last seen before the Ukrainian conflict began, mirroring European gas prices returning to pre-war levels across the region. This drop comes as a relief to many who have been grappling with volatile energy costs and their impact on the cost of living and business operations. The return to lower diesel prices is a noteworthy shift in the energy landscape, with implications for the French economy, transportation sector, and broader European market.

Context of Rising Diesel Prices

The onset of the Ukrainian conflict in early 2022 triggered a dramatic increase in global energy prices, including diesel. The conflict's disruption of supply chains, coupled with sanctions on Russian oil and gas exports, contributed to a steep rise in fuel prices across Europe, prompting the EU to weigh emergency electricity price measures to shield consumers. For France, this meant that diesel prices soared to unprecedented levels, putting significant pressure on consumers and businesses that rely heavily on diesel for transportation and logistics.

The impact was felt across various sectors. Transportation companies faced higher operational costs, which were often passed down to consumers in the form of increased prices for goods and services. Additionally, higher fuel costs contributed to broader inflationary pressures, with EU inflation hitting lower-income households hardest, affecting household budgets and overall economic stability.

Recent Price Trends and Market Adjustments

The recent decline in diesel prices in France is a welcome reversal from the peak levels experienced during the height of the conflict. Several factors have contributed to this price reduction. Firstly, there has been a stabilization of global oil markets as geopolitical tensions have somewhat eased and supply chains have adjusted to new realities. The gradual return of Russian oil to global markets, albeit under complex sanctions and trading arrangements, has also played a role in moderating prices.

Moreover, France's strategic reserves and diversified energy sources have helped cushion the impact of global price fluctuations. The French government has also implemented measures to stabilize energy prices, including subsidies and tax adjustments, and a new electricity pricing scheme to satisfy EU concerns, which have helped alleviate some of the financial pressure on consumers.

Implications for the French Economy

The return to pre-conflict diesel price levels brings several positive implications for the French economy. For consumers, the decrease in fuel prices means lower transportation costs, which can ease inflationary pressures and improve disposable income, and, alongside the EDF electricity price deal, reduce overall utility burdens for households. This is particularly beneficial for households with long commutes or those relying on diesel-powered vehicles.

For businesses, especially those in the transportation and logistics sectors, the drop in diesel prices translates into reduced operational costs. This can help lower the cost of goods and services, potentially leading to lower prices for consumers and improved profitability for businesses. In a broader sense, stabilized fuel prices can contribute to overall economic stability and growth, as lower energy costs can support consumer spending and business investment.

Environmental and Policy Considerations

While the decrease in diesel prices is advantageous in the short term, it also raises questions about long-term energy policy and environmental impact, with the recent crisis framed as a wake-up call for Europe to accelerate the shift away from fossil fuels. Diesel, as a fossil fuel, continues to pose environmental challenges, including greenhouse gas emissions and air pollution. The drop in prices might inadvertently discourage investments in cleaner energy alternatives, such as electric and hybrid vehicles, which are crucial for achieving long-term sustainability goals.

In response, there is a growing call for continued investment in renewable energy and energy efficiency measures. France has been actively pursuing policies to reduce its reliance on fossil fuels and increase the adoption of cleaner technologies, amid ongoing EU electricity reform debates with Germany. The government’s support for green energy initiatives and incentives for low-emission vehicles will be essential in balancing short-term benefits with long-term environmental objectives.

Conclusion

The recent return of French diesel prices to pre-Ukrainian conflict levels marks a significant shift in the energy market, offering relief to both consumers and businesses. While this decline brings immediate financial benefits and supports economic stability, it also underscores the ongoing need for a strategic approach to energy policy and environmental sustainability. As France navigates the evolving energy landscape, the focus will need to remain on fostering a transition towards cleaner energy sources while managing the economic and environmental impacts of fuel price fluctuations.

 

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