Court upholds state approval of coal gasification plant

Germany's Economic Downturn reflects an energy crisis, deindustrialization risks, export weakness, and manufacturing stress, amid Russia gas loss, IMF and EU recession forecasts, and debates over electricity price caps and green transition.

Key Points

An economic contraction from energy price shocks, export weakness, and bottlenecks in manufacturing and digitization.

✅ Energy shock after loss of cheap Russian gas

✅ Exports slump amid China slowdown and weak demand

✅ Policy gridlock on power price cap and permits

Germany went from envy of the world to the worst-performing major developed economy. What happened?

For most of this century, Germany racked up one economic success after another, dominating global markets for high-end products like luxury cars and industrial machinery, selling so much to the rest of the world that half the economy ran on exports.

Jobs were plentiful, the government’s financial coffers grew as other European countries drowned in debt, and books were written about what other countries could learn from Germany.

No longer. Now, Germany is the world’s worst-performing major developed economy, with both the International Monetary Fund and European Union expecting it to shrink this year.

It follows Russia’s invasion of Ukraine and the loss of Moscow’s cheap Russian gas that underpinned industry — an unprecedented shock to Germany’s energy-intensive industries, long the manufacturing powerhouse of Europe.

The sudden underperformance by Europe’s largest economy has set off a wave of criticism, handwringing and debate about the way forward.

Germany risks “deindustrialization” as high energy costs and government inaction on other chronic problems threaten to send new factories and high-paying jobs elsewhere, said Christian Kullmann, CEO of major German chemical company Evonik Industries AG.

From his 21st-floor office in the west German town of Essen, Kullmann points out the symbols of earlier success across the historic Ruhr Valley industrial region: smokestacks from metal plants, giant heaps of waste from now-shuttered coal mines, a massive BP oil refinery and Evonik’s sprawling chemical production facility.

These days, the former mining region, where coal dust once blackened hanging laundry, is a symbol of the energy transition, as the power sector’s balancing act continues with wind turbines and green space.

The loss of cheap Russian natural gas needed to power factories “painfully damaged the business model of the German economy,” Kullmann told The Associated Press. “We’re in a situation where we’re being strongly affected — damaged — by external factors.”

After Russia cut off most of its gas to the European Union, spurring an energy crisis in the 27-nation bloc that had sourced 40% of the fuel from Moscow, the German government asked Evonik to turn to coal by keeping its 1960s coal-fired power plant running a few months longer.

The company is shifting away from the plant — whose 40-story smokestack fuels production of plastics and other goods — to two gas-fired generators that can later run on hydrogen amid plans to become carbon neutral by 2030 and following the nuclear phase-out of recent years.

One hotly debated solution: a government-funded cap on industrial electricity prices to get the economy through the renewable energy transition, amid an energy crisis that even saw a temporary nuclear extension to stabilize supply.

The proposal from Vice Chancellor Robert Habeck of the Greens Party has faced resistance from Chancellor Olaf Scholz, a Social Democrat, and pro-business coalition partner the Free Democrats. Environmentalists say it would only prolong reliance on fossil fuels, while others advocate a nuclear option to meet climate goals.

Kullmann is for it: “It was mistaken political decisions that primarily developed and influenced these high energy costs. And it can’t now be that German industry, German workers should be stuck with the bill.”

The price of gas is roughly double what it was in 2021, with a senior official arguing nuclear would do little to solve that gas issue, hurting companies that need it to keep glass or metal red-hot and molten 24 hours a day to make glass, paper and metal coatings used in buildings and cars.

A second blow came as key trade partner China experiences a slowdown after several decades of strong economic growth.

These outside shocks have exposed cracks in Germany’s foundation that were ignored during years of success, including lagging use of digital technology in government and business and a lengthy process to get badly needed renewable energy projects approved.

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Germany Nuclear Power Extension keeps Isar 2, Neckarwestheim 2, and Emsland running as Olaf Scholz tackles the energy crisis, soaring gas prices, and EU winter demand, prioritizing grid stability amid the Ukraine war.

Key Points

A temporary policy keeping three German reactors online to enhance grid stability and national energy security.

✅ Extends Isar 2, Neckarwestheim 2, and Emsland operations

✅ Addresses EU energy crisis and soaring gas prices

✅ Prioritizes grid stability while coal phase-out advances

German Chancellor Olaf Scholz has ordered the country's three remaining nuclear power stations to keep operating until mid-April, signalling a nuclear U-turn as the energy crisis sparked by Russia's invasion of Ukraine hurts the economy.

Originally Germany planned to phase out all three by the end of this year, continuing its nuclear phaseout policy at the time.

Mr Scholz's order overruled the Greens in his coalition, who wanted two plants kept on standby, to be used if needed.

Nuclear power provides 6% of Germany's electricity.

The decision to phase it out was taken by former chancellor Angela Merkel after Japan's Fukushima nuclear disaster in 2011.

But gas prices have soared since Russia's invasion of Ukraine in February, which disrupted Russia's huge oil and gas exports to the EU, though some officials argue that nuclear would do little to solve the gas issue in the short term. In August Russia turned off the gas flowing to Germany via the Nord Stream 1 undersea pipeline.

After relying so heavily on Russian gas Germany is now scrambling to maintain sufficient reserves for the winter. The crisis has also prompted it to restart mothballed coal-fired power stations, with coal generating about a third of its electricity currently, though the plan is to phase out coal in the drive for green energy.

Last year Germany got 55% of its gas from Russia, but in the summer that dropped to 35% and it is declining further.

EU leaders consider how to cap gas prices
France sends Germany gas for first time amid crisis
Chancellor Scholz's third coalition partner, the liberal Free Democrats (FDP), welcomed his move to keep nuclear power as part of the mix. The three remaining nuclear plants are Isar 2, Neckarwestheim 2 and Emsland, which were ultimately shut down after the extension.

The Social Democrat (SPD) chancellor also called for ministries to present an "ambitious" law to boost energy efficiency and to put into law a phase-out of coal by 2030, aiming for a coal- and nuclear-free economy among major industrial nations.

Last week climate activist Greta Thunberg said it was a "mistake" for Germany to press on with nuclear decommissioning while resorting to coal again, intensifying debate over a nuclear option for climate goals nationwide.

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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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UK Clean Electricity Record as wind, solar, and biomass boost renewable energy output, slashing carbon emissions and wholesale power prices during lockdown, while lower demand challenges grid balancing and drives a drop to 153 g/kWh.

Key Points

A milestone where wind, solar and biomass lifted renewables, cutting carbon intensity to 153 g/kWh during lockdown.

✅ Carbon intensity averaged 153 g/kWh in Q2 2020.

✅ Renewables output rose 32% via wind, solar, biomass.

✅ Wholesale power prices slumped 42% amid lower demand.

U.K electricity has never been cleaner. As wind, solar and biomass plants produced more power than ever in the second quarter, with a new wind generation record set, carbon emissions fell by a third from a year earlier, according to Drax Electric Insight’s quarterly report. Power prices slumped 42 per cent as demand plunged during lockdown. Total renewable energy output jumped 32 per cent in the period, as wind became the main source of electricity at times.

“The past few months have given the country a glimpse into the future for our power system, with higher levels of renewable energy, as wind led the power mix, and lower demand making for a difficult balancing act,”said  Iain Staffell, from Imperial College London and lead author of the report.

The findings of the report point to the impact energy efficiency can have on reducing emissions, as coal's share fell to record lows across the electricity system. Millions of people furloughed or working from home and shuttered shops up and down the country resulted in daily electricity demand dropping about 10% and being about four gigawatts lower than expected in the three months through June.

Average carbon emissions fell to a new low of 153 grams per kWh of electricity consumed over the quarter, as coal-free generation records were extended, even though low-carbon generation stalled in 2019, according to the report.

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California Income-Based Utility Fees would overhaul electricity bills as CPUC weighs fixed charges tied to income, grid maintenance costs, AB 205 changes, and per-kilowatt-hour rates, shifting from pure usage pricing to hybrid utility rate design.

Key Points

Income-based utility fees are fixed monthly charges tied to earnings, alongside per-kWh rates, to help fund grid costs.

✅ CPUC considers fixed charges by income under AB 205

✅ Separates grid costs from per-kWh energy charges

✅ Could shift rooftop solar and EV charging economics

Electricity bills in California are likely to change dramatically in 2026, with major changes under discussion statewide.

The California Public Utilities Commission (CPUC) is in the midst of an unprecedented overhaul of the way most of the state’s residents pay for electricity, as it considers revamping electricity rates to meet grid and climate goals.

Utility bills currently rely on a use-more pay-more system, where bills are directly tied to how much electricity a resident consumes, a setup that helps explain why prices are soaring for many households.

California lawmakers are asking regulators to take a different approach, and some are preparing to crack down on utility spending as oversight intensifies. Some of the bill will pay for the kilowatt hours a customer uses and a monthly fixed fee will help pay for expenses to maintain the electric grid: the poles, the substations, the batteries, and the wires that bring power to people’s homes.

The adjustments to the state’s public utility code, section 739.9, came about because of changes written into a sweeping energy bill passed last summer, AB 205, though some lawmakers now aim to overturn income-based charges in subsequent measures.

A stroke of a pen, a legislative vote, and the governor’s signature created a move toward unprecedented income-based fixed charges across the state.

“This was put in at the last minute,” said Ahmad Faruqui, a California economist with a long professional background in utility rates. “Nobody even knew it was happening. It was not debated on the floor of the assembly where it was supposedly passed. Of course, the governor signed it.”

Faruqui wonders who was responsible for legislation that was added to the energy bill during the budget writing process. That process is not transparent.

“It’s a very small clause in a very long bill, which is mostly about other issues,” Faruqui said.

But that small adjustment could have a massive impact on California residents, because it links the size of a monthly flat fee for utility service to a resident’s income. Earn more money and pay a higher flat fee.

That fee must be paid even before customers are charged for how much power they draw.

Regulators interpreted legislative change as a mandate, but Faruqui is not sold.

“They said the commission may consider or should consider,” Faruqui said. “They didn’t mandate it. It’s worth re-reading it.”

In fact, the legislative language says the commission “may” adopt income-based flat fees for utilities. It does not say the commission “should” adopt them.

Nevertheless, the CPUC has already requested and received nine proposals for how a flat fee should be implemented, as regulators face calls for action amid soaring electricity bills.

The suggestions came from consumer groups, environmentalists, the solar industry and utilities.

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Clean Energy Standard charts a federal path to decarbonize the power sector, scaling renewables, wind, solar, nuclear, and carbon capture to slash emissions, create green jobs, and reach net-zero targets amid the climate crisis.

Key Points

A federal policy to expand clean power and cut emissions with renewables, nuclear, and carbon capture toward net-zero.

✅ Mandates annual increases in clean electricity supply

✅ Includes renewables, nuclear, hydro, and carbon capture

✅ Targets rapid emissions cuts and net-zero by mid-century

The world has been put on notice. Last year, both the UN Intergovernmental Panel on Climate Change and the U.S. National Climate Assessment warned that we need to slash greenhouse gas emissions to avoid disastrous impacts of global warming. Their direct language forecasting devastating effects on our health, economics, environment, and ways of life has made even more urgent the responsibility we all have to act boldly to combat the climate crisis.

This week, we’re adding one important tool for addressing the climate crisis to the national conversation.

Together, we’re taking that bold action. The Climate reports made clear that to limit the global temperature rise and stave off devastating impacts to our climate—human-caused CO2 emissions must fall rapidly by 2030 and that we, as a global community, underscored at the Katowice climate talks, must reach net-zero emissions by the middle of the century. The Clean Energy Standard is federal legislation that offers a pathway toward decarbonizing our power sector and helping our nation accomplish a goal of net-zero emissions by the 2050s.

Under this plan, any company selling retail electricity will have a mandate to increase the amount of clean energy provided to its customers. It will incentivize clean electricity investment to put the U.S. on a sustainable path.

To deal most effectively with a crisis, all tools must be on the table. Our plan focuses solely on emissions, and there is a place for all technologies that can put us on the path to net zero. That will mean drastic increases in wind and solar energy for sure, as states like California pursue a 100% carbon-free electricity mandate to accelerate deployment, but nuclear power, hydro power, and fossil fuels with carbon capture and storage all have important roles to play.

We’re doing this because the science is clear – tackling our climate crisis requires serious and rapid action to control greenhouse gas emissions, and the push for decarbonization is irreversible according to many. Inaction on the climate crisis puts our families at risk, and we’re not wasting any time. This is also an opportunity to create good-paying green jobs that can last generations and uplift the middle class.

We are doing this for the environment, but also for jobs and economic competitiveness. The green economy is the future and we’re ready to see it grow, with states like New York advancing a Green New Deal that drives innovation. The United States can lead, or we can follow, and we want our nation to lead.

And, because as a New Mexican and a Minnesotan, we know that the impacts of climate change go far beyond the headlines and political discourse. It means devastation within tamarack forests and an increase in deadly fires. It means hotter summers and shorter winters with extreme temperature swings throughout the year. It means devastating flash floods with increasingly intense rain. It’s impacting our pocketbooks when farmers and small businesses who work the land in rural communities are unable to make ends meet.

States across the country are already acting to combat the climate crisis – including Minnesota's 2050 carbon-free electricity plan and New Mexico. But in order to truly address climate change, we have to be in this together as Americans. If the problem is far-reaching, our solutions must be equally as holistic.

It's why we've worked with green groups and activists, unions, and communities across the country - from urban to rural - to create a solution that understands the different starting points communities face in reaching net zero emissions, but doesn't shrink from the absolute need to reach that standard.

There is not one solution to climate change – it will take a collective group of individuals prepared to boldly act. And we are ready to take on that fight.

In Congress, we have formed the House Select Committee on the Climate Crisis and the Senate Democrats’ Special Committee on the Climate Crisis to hear from everyday Americans how climate change is affecting them – and how we can come together to find solutions that build on the historic climate deal passed this year. We have heard the stories of young people worried about their futures. And we realize there is a sense of urgency to act.

Over the coming weeks and months, we will be building support from communities across the country to make this plan a reality. We will continue working with stakeholders to ensure every voice is heard. Most importantly, we will continue listening to you and your communities.

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