Today’s ESG Updates
- 1M Jobs at Risk if EU Drops 2035 EV Goal: Scrapping the zero-emission target could cost 1M jobs and stall battery investments, says T&E
- Trump Sets August 1 Tariff Deadline: New U.S. tariffs of up to 40% on key imports spark global trade uncertainty
- Oil Prices Ease as OPEC+ Lifts Output: Markets react to surprise OPEC+ production hike and evolving U.S. tariff policies
- UN World Court to Clarify States’ Climate Duties: A key opinion on emissions and liability will be released on July 23
1M jobs are at risk if the EU’s 2035 zero-emission car target is terminated
A report by the Transport & Environment (T&E) campaign group has shown that a rollback on the 2035 target that all new cars and vans sold in the EU no longer emit CO2 may result in the loss of 1M auto industry jobs and two-thirds of planned battery investments. On top of high costs in home markets and fierce competition from Chinese and U.S. rivals in the EV industry, European carmakers also face the consequences of America’s 25% tariffs on auto imports. The EU has relaxed some emission targets for cars and vans, but regulations barring the sale of fossil-fuel cars by 2035 still stand. The report states that if the 2035 goal is maintained and production growth policies are implemented, the automotive value chain’s contribution to the European economy may grow by 11% by 2035. To stay updated on the latest developments, companies can engage in the use of ESG solutions.
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Further reading: Abandoning EU’s 2035 zero-emission car target would risk 1 million jobs, study says
Trump sets new deadlines for tariff hikes but reveals new rates for some countries
Trump has set a new deadline for tariff hikes on goods from key economies and has also announced new U.S. tariff rates for more than a dozen countries. Various countries, including Japan, South Korea, and South Africa, will face tariffs of up to 40% as part of a new wave of taxes that will kick in on August 1. Trump has recently signed an executive order which essentially pushes back the deadline of all trade talks to August 1 as well. White House officials have also indicated that new blanket rates, which are charged on imported goods from specific markets, would incorporate existing duties charged on certain sectors. So far, the U.S. has settled deals with the UK, China, and Vietnam. The new August deadline gives countries without a deal a three-week reprieve but also incites uncertainty for importers due to the lack of clarity around tariffs.
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Further reading: Trump delays tariff hikes again but announces new rates for some countries
Oil prices relax while new tariff developments are examined, and OPEC+ output for August increases
Following an increase of almost 2% in the previous session, oil prices have eased amid investors’ assessments of the new developments on U.S. tariffs and an unexpected surge in OPEC+ output. Brent Crude Futures prices have dropped by 21 cents while West Texas Intermediate (WTI) prices have dropped by 24 cents. Recent tariff changes have sparked concerns about oil demand. However, there are indicators that current demand is high, especially in the U.S., which is the world’s largest oil consumer. Meanwhile, the Organisation of the Petroleum Exporting Countries and Allies (OPEC+) has agreed to increase production by 548,000 barrels per day (bpd) in August, exceeding the 411,000 bpd hikes that they made for the previous three months. Analysts at Goldman Sachs expect OPEC+ to announce a final 550,000 bpd increase for September at the next meeting on August 3. To keep up with more industry developments, companies can utilise ESG tools.
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Further reading: Oil prices ease as traders assess US tariffs, OPEC+ output hike
World Court’s climate change opinion to be released on July 23
On July 23, the UN court will issue a nonbinding opinion on countries’ legal obligation to fight climate change, and this decision is expected to be cited in climate change-driven litigation around the world. The World Court is also expected to address whether large states contributing the most to greenhouse gas emissions should be liable for damage caused to small island nations. Developing nations and small island states, which bear the brunt of climate change, have argued for robust measures to curb emissions and require financial support from wealthier polluting nations. The World Court’s advisory opinion makes up part of a global wave of climate litigation as more countries, organisations, and individuals are turning to courts for climate action. While nonbinding, the court’s interpretations of the law hold much legal and political weight. Companies can use ESG tools to stay updated on the latest regulations and policies.
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Further reading: World Court to issue climate change opinion on July 23
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the cover photo: Aerial shot of man in carpark, Mar. 22, 2024. Cover Photo Credit: Ron Kuan
