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EU countries demand stricter control on new CO2 prices
A document obtained by revealed that Germany, the Czech Republic, and 14 other nations have asked the European Union to introduce stricter controls on the new carbon market of the bloc, out of fear the policy would increase consumer bills. The paper, with support from enough countries for the "qualified majority" required to pass EU legislation, aims at pressuring the European Commission to alter the EU carbon market, due to be launched in 2027, for fuels used to heat and transport vehicles. The paper stated that improvements should be made prior to the launch of the market to address legitimate concerns about price uncertainty and the social impact and to increase public acceptance. The new EU carbon markets will impose CO2 prices on the suppliers of polluting gasolines and fuels for cars and buildings. The system is set up so that, if the price of CO2 reaches 45 euros per tonne, additional CO2 permits are released to the market in order to control prices. If prices rise, the countries suggested adding more CO2 permits. They said that the EU should strengthen a "reserve", which adds additional permits to market if there is a shortage of them, along with other changes, such as launching auctions for carbon permits early to get an idea of prices. Austria, Belgium Bulgaria, Croatia, Estonia Italy Latvia, Lithuania, The Netherlands, Poland Romania, Slovakia Slovenia and Spain also signed the document. Poland and the Czech Republic, among others, have warned that the policy may cause a backlash against climate change initiatives if it increases fuel prices. The EU agreed to set aside billions of Euros in profits from the new market for citizens' bills, subsidies for electric cars and energy saving home renovations. This year, the EU has reduced its green policies in an effort to curb political opposition. EU's core targets for reducing emissions have not been watered-down. The Commission may weaken a climate goal for 2040 to try to gain support from countries that are sceptical, as previously reported. On July 2, the Commission will propose a climate target for 2040. Kate Abnett is reporting, Ed Osmond is editing.
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Russia claims it is too soon to estimate the damage caused by US bombs to Iranian nuclear facilities
The Kremlin stated on Wednesday that the damage caused by U.S. airstrikes on Iran's nucleus facilities last weekend was still too early to determine. Dmitry Peskov, spokesman for the Kremlin, said "No" when asked if Russia held its own data on the extent of damage. I don't believe that anyone has realistic data at this time. "It's likely too early to have such data. We need to wait for them." The U.S. president Donald Trump claimed at the weekend that these strikes "obliterated Iran's nuclear facility". Three sources familiar with the situation said that an initial U.S. Intelligence assessment determined that the attack had set Tehran's program back by Only a few months away Russia condemned the strikes against Iran, which it signed an agreement of strategic cooperation with in January, calling them illegal, unjustified, and unprovoked. Peskov stated that Russia has evidence that Washington and Tehran have open communication channels. He added that Moscow is closely monitoring the developments and continues to speak with Iran. Reporting by Dmitry Antonov, Writing by Mark Trevelyan/Maxim Rodionov, Editing by Andrew Osborn
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FT reports that EDF is considering asset sales in light of the increased push for nuclear power.
The Financial Times reported that the new head of EDF, a French state-owned utility, is considering selling some assets in order to satisfy government demands for new investments in nuclear reactors. The FT, citing sources familiar with the matter, reported that Dalkia and Edison may be among the units to be sold. The FT reported that renewable assets are also being considered, except for EDF's hydropower projects. France is the main nuclear champion in Europe, as it sources around 70% of its electricity from this source. EDF's nuclear power fleet generates about 70% of France’s electricity. Bernard Fontana, the new CEO of EDF, was appointed in March after President Emmanuel Macron lost patience with the former chief Luc Remont over differences regarding how to provide energy and build capital-intensive nuclear power reactors. The FT reported that Fontana told insiders he was looking to determine which assets were not profitable and did not match the strategic priorities of the energy group. He added that the sale might come after this review, but he had not yet decided which parts of his business should be sold. EDF refused to comment on the reported. Could not verify the report immediately. Reporting by Rhea Rosa Abraham in Bengaluru, edited by Anil D'Silva & Rashmi aich
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IAEA chief: return to Iranian sites top priority
Rafael Grossi, the U.N.'s chief nuclear inspector, said that his priority was to get his inspectors to Iran to assess the effects of U.S. military strikes on Iran and to verify its stock of enriched Uranium. Grossi, the head of the International Atomic Energy Agency (IAEA), told a press conference during an Austrian cabinet meeting on security that "this is our number one priority." He wants his inspectors to return to Iranian sites, including the three facilities where it enriches uranium before Israel's strikes on June 13th. When asked if Iran informed him about the status of its stocks, especially its uranium that was enriched up to 60% purity and close to weapons grade he referred to a June 13 letter from Iran, which stated Iran would take “special measures” to protect its nuclear equipment and materials. They did not elaborate on what they meant, but it was clear that this was the implied meaning. Grossi suggested that much of the material may have survived the attack. Francois Murphy reports.
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China braces itself for a second tropical cyclone within two weeks after flooding
Meteorologists warned that a tropical depression could hit southern China on Thursday. It will bring rain and gales in a region still recovering after the Typhoon Wutip. China's National Meteorological Centre published an online bulletin Wednesday that the tropical depression may land between the island provinces of Hainan on the mainland and Guangdong in the south on Thursday morning. The flood defences in densely populated Guangdong, as well as Guangxi or Hunan farther inland will be tested by the storm. Wutip, which ravaged the region between June 13 and 15, dropped record rainfall and damaged roads and crops. Five people died. China has been fighting summer flooding for millennia. But some scientists claim climate change is leading to heavier rains and more frequent floods. Chinese officials warn that massive flooding could trigger "black swans" with disastrous consequences, such as dam failures. Chinese meteorologists predict that heavy rains caused by typhoons from June through July will cause more flooding than expected. Rongjiang, in the southwest Guizhou Province, was hit by unusually heavy rains on Wednesday. The city, which has a population of 300,000, was half submerged as floodwaters rose quickly and swept cars away, damaged underground garages, malls, power grids and other vital infrastructure. State media reported that rivers in Guangxi downstream were still swollen Wednesday due to the rain in Guizhou. One waterway was more than nine metres (30 feet), above what is considered safe. China's Economic Planning Agency in Beijing announced on Wednesday that it had allocated urgently 100 million Yuan ($14million) for disaster relief in Guizhou and another 100 million Yuan to Guangdong, Hunan and other provinces.
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India's biofuel campaign eats into chicken farmer profits
In India, maize prices are rising sharply due to the ethanol push Feed price hike squeezes poultry farmers After years of exporting maize, India now imports it Bhasker Tripathi India's rapidly expanding biofuel program, designed to reduce oil imports and emissions, has intensified competition for maize. Small poultry producers, like Prajapati, are feeling the effects. By the year 2025, the Indian government aims to have 20% of the petrol sold in the country be ethanol. Sugarcane and maize are the main feedstocks for biofuel. The increase in ethanol production diverts the food crop away from traditional uses such as livestock feed, impacting millions small poultry farmers that rely on maize for their birds. Cleaner Fuel According to Indian government statistics, India saved about 1,06 trillion rupees (12.37 billion dollars) between 2014 and 2024 in crude oil imports by blending ethanol with petrol. Government data revealed that it also prevented 54.4 million tonnes of carbon dioxide emissions that are harmful to the planet in the same decade. According to the U.S. Environmental Protection Agency's calculator, this is the equivalent of 12 million gasoline powered cars per year. The document shows that ethanol production uses about one-third of the maize produced in India. This puts it in direct competition with India's poultry industry, which consumes around 60% of India’s maize. Rajeev Ranjan is a maize seller to both ethanol mills and poultry feedmills. He said that prices had risen by more than 20 percent in the last year. Suresh Deora is the former chairman of India's Compound Livestock Feed Manufacturers' Association. Egg prices are set by the market, so small farmers can't easily pass on higher costs. Reports state that India, once a net exporter of maize, is now forced to import grain in order to stabilize the domestic supply. India's current maize demand, which includes fuel, liquor and other industrial uses, exceeds the production, according to Ramya Natarajan, an Indian research scientist with CSTEP, a think tank. According to CSTEP, to meet the 20% ethanol goal will require land seven times as large as New York City for biofuel crops. FEW CUSHIONS Prajapati says spiraling costs and lower production of eggs have forced him to use cheaper, lower-quality feeds, further reducing the number of egg laying chickens. The small poultry farmer and others are already struggling with disease, lack of credit and heatwaves which reduce the egg production and increase bird death. Prince Rajput of Varanasi said that the maize price increases have also reduced his profit margins. He warned small farmers that they have limited room to cushion shocks and that rising costs could squeeze them out completely. They cannot negotiate deals or hedge against inflation like large producers. Rajput stated that "Poultry does not seem to be a government priority sector." "Even getting loans is difficult." Farmers and feed manufacturers urge the government, for now, to increase maize production and limit its use in ethanol. Requests for comments from the departments responsible for biofuel, poultry and maize production were not answered. New biofuel technologies could be a solution, say experts. While most biofuels come from maize or maize second generation, ethanol is made using crop residues, non-food biomass and other crops. This could help reduce the pressure on the food system. Natarajan stated that if 2G ethanol is commercially viable it will help India achieve its blend targets without compromising land use or food security.
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The gold market is watching US economic data.
The gold price stabilized on Wednesday, after it had fallen in the previous session. This was due to an improved risk appetite after a truce reached between Israel and Iran. Meanwhile, attention turned towards upcoming U.S. Economic Data. Gold spot was unchanged at $3,326.89 an ounce as of 0823 GMT. Prices had fallen to their lowest levels in more than two weeks on Tuesday. U.S. Gold Futures rose 0.2% to $3341.40. Gold's earlier gains were wiped out yesterday due to the de-escalation in tensions in the Middle East and a reduced need for safe haven assets. Investors will likely continue to prefer to hold gold despite the uncertainty surrounding Iran's future nuclear program, said Giovanni Staunovo. On Wednesday, the ceasefire between Iran and Israel brokered by U.S. president Donald Trump appeared to have held on the day after both countries had signalled their air war was over. Investors decided to increase their risk after the truce, and this caused the dollar index to struggle to recover lost ground. The dollar's weakness makes the greenback price of bullion attractive to holders of other currencies. A report revealed that global central banks are looking to move their reserves away from the US dollar and into gold, euro, or the Chinese yuan in the face of geopolitical turmoil. Gold tends to do well when interest rates are low and is a good investment during times of turmoil. Markets are now focused on the first-quarter GDP data for the United States, due Thursday. This will provide insights into economic growth. The Federal Reserve's preferred inflation indicator, Personal Consumption Expenditures report (PCE), is the focus of Friday's attention. Staunovo stated that if the PCE data is lower, it will put more pressure on the Fed and gold to reduce rates. On Tuesday, Fed chair Jerome Powell warned members of Congress that increased tariffs may start to raise inflation in the summer. Data showed that U.S. consumers' confidence unexpectedly declined in June. Silver spot fell by 0.2% to $35.85. Platinum dropped 0.6% to $1,308.60. Palladium was down 0.5% to $1,061.25. (Reporting and editing by Kevin Liffey in Bengaluru)
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Dollar steady, stocks up as ceasefire boosts confidence
On Wednesday, stocks rose and crude oil remained close to multi-week lows as investors viewed a ceasefire agreement between Israel and Iran and reinvested in riskier assets. They also brushed aside any immediate concerns about an energy crisis. Lower oil prices lowered the inflation risk for bonds. Israel has said it will take strong action against Iranian missile attacks that followed after U.S. president Donald Trump declared an end to hostilities. According to an initial U.S. Intelligence Assessment, the U.S. airstrikes didn't destroy Iran's nucleonic capability, but only pushed it back a few months. This contradicts Trump's previous comments that Iran’s nuclear program had been "obliterated". Early trade saw the Stoxx 600 index in Europe rise 0.2%, while S&P futures and Nasdaq Futures were flat. The Nikkei soared 0.4% in Japan, while the Hang Seng rose 1.3% in Hong Kong, and blue chips on mainland China gained 1.44% to close at their highest levels since March 20. The MSCI global stock index remained stable after hitting a new record overnight. Analysts at Frankfurt's Metzler stated that "if the still-tense Middle East situation continues to calm, then the stock markets may have a pleasant month of July in front of them in line with the usual seasonal pattern." This would lead to new highs for the U.S. and could be further fueled by renewed expectations that the Fed will cut interest rates. The latest U.S. macroeconomic statistics, including consumer confidence data, released over night suggest that the economy may have grown slower than expected in the largest oil-consuming country. This has boosted expectations for Federal Reserve rate reductions this year. Brent crude rose by 2%, to $68.43 a barrel. This is a slight rebound after a drop of up to $14.58 in the two previous sessions. U.S. West Texas Intermediate Crude was up to $65.60 a barrel. In a client note, analysts at ING stated that "while concerns regarding Middle Eastern supplies have diminished, they haven't entirely disappeared and there is still a strong demand for immediate supply." The yield on the two-year U.S. Treasury bond was the lowest since May 8, at 3.7848%. The euro fell 0.1% to $1.1594. This is still near the overnight high, $1.1641, which has not been seen since October 20,21. Meanwhile, the U.S. Dollar Index, which measures currency against six other major counterparts was only marginally higher at 98.079. Gold prices rose slightly to $3,328 an ounce. Investors continue to be most concerned about U.S. money policy, aside from geopolitics. Federal Reserve Chair Jerome Powell stated on Tuesday that increased tariffs may begin to raise inflation this summer. This period will be crucial for the U.S. Central Bank when considering rate cuts. According to CME FedWatch, the markets continue to price in an approximate 19% chance of the Fed cutting rates by a quarter-point in July.
Why the Peruvian farmer’s loss in court may have been a victory for climate justice
The ten-year court battle between an Peruvian farmer, and German energy giant RWE regarding the global emissions of RWE and their impact on his home town finally ended on Wednesday.
The court dismissed the case without allowing for an appeal. The farmer, his attorneys and environmentalists hail the ruling as a historic victory in climate cases, which could lead to similar lawsuits.
What was the case about?
Huaraz, located in the highlands of Peru, is threatened by a flood caused by a glacial outburst lake. Since 1970 the volume of Lake Palcacocha has increased at least 34-fold. This requires investment in drainage and dam structures.
Saul Luciano Lliuya, a Peruvian farmer, sued the German energy giant RWE claiming that it should pay 0.5% of flood defenses because the company has emitted 0.5% global emissions since industrial revolution even though they do not have a physical presence on the Peruvian soil.
It would have been about $17500.
Why did the court rule against the farmer?
The court's decision was based upon calculating the flood risk that Lliuya faced. A 30-year damage estimate for the plaintiff's home was found to be 1% by an expert. The court decided that this was not sufficient to continue the case.
How does the court's ruling make companies liable for similar lawsuits?
The court found that while the risk to Lliuya’s home did not meet the threshold, companies can be held responsible for their emissions.
In a press conference held after the verdict, Noah Walker-Crawford said, "They established a duty of care, a principle of legal liability for corporate climate, which no other court in the world has done." This is a truly, really historic verdict.
The ruling states that German civil code overseeing property rights is applicable across borders, and that it can be used by litigants from around the globe to file transnational lawsuits against German companies.
The court stated that RWE’s permits did not exempt them from responsibility when they violated the rights of other people and their global emissions made it responsible for the consequences of climate change.
The fact that a company is one of several emitters doesn't shield it from liability.
WHAT DIDN'T THE COURT SAY IN REGARD TO CLIMATE SCIENCES?
The court stated that the link between carbon dioxide emissions and risk dates back to 1958 when U.S. scientist Charles Keeling first published a graph showing the annual variation of carbon dioxide and its accumulation in Earth's atmospheric.
The report of the Presidential SAC from 1965, which found that burning fossil fuels increased atmospheric CO2, also provided companies with enough information to anticipate harmful effects and be legally responsible for them.
The complexity of the science behind climate change does not excuse liability.
What does RWE say about the case?
A spokesperson for RWE told a reporter that the ruling was not a precedent in the UK legal system. Three other regional courts had also taken a different view.
The statement stated that since the case had been thrown out the court has not ruled on whether or to what extent RWE can be held accountable. It also added that the company operated in compliance with the applicable laws, and the climate policy issue should be decided at the political level. (Reporting and editing by Aurora Ellis; Alexander Villegas)
(source: Reuters)