Today’s ESG Updates
- China Leads Global Effort in Renewable Energy Buildout: The country is advancing nearly 1.3 TW of utility-scale solar and wind capacity.
- Masdar and Iberdrola Invest €5.2B in UK Offshore Wind: Global banks back 1.4 GW of UK offshore wind expansion.
- Indonesia Urges Further Delay of EU Deforestation Law: The already delayed EU deforestation regulations face resistance from key global partners.
- European Grid Plans Fall €250 Billion Short: Without financing reform, new clean energy could be wasted on outdated transmission networks.
New study finds that China has over 1.3 TW of planned solar and wind capacity
A recent study by Global Energy Monitor found that China is leading the global energy transition, with over 1.4 TW of operating solar and wind capacity and a 1.3 TW pipeline in development, totaling more than the rest of the world combined. Offshore wind takes a smaller share, but is expanding rapidly and now represents 50% of global capacity under construction. Coastal provinces are leading the way in innovative offshore wind projects, including the development of floating turbines and green hydrogen pilots. Offshore wind growth faces policy and financing hurdles after the end of national subsidies, but a unified national strategy could unleash the full potential of offshore wind in decarbonizing China’s coastal energy systems.
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Further reading: China’s solar and onshore wind capacity reaches new heights, while offshore wind shows promise
Masdar and Iberdrola invest €5.2B in UK offshore wind project
Abu Dhabi’s renewable energy company Masdar and Spain’s Iberdola have announced a joint investment of €5.2 billion in East Anglia THREE, a 1.4 GW offshore wind project off the UK’s east coast. Backed by €4.1 billion in financing from 24 global banks, the 50/50 partnership signals growing international momentum behind large-scale renewable infrastructure. Masdar’s continued expansion across Europe supports parent company TAQA’s goal of reaching 150 GW in renewables by 2030. The UK wind farm is expected to be operational by late 2026.
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Further reading: UAE’s Masdar, Iberdrola invest in 1.4 gigawatt wind farm in the UK
EU faces pushback from Indonesia over deforestation regulations
Indonesia has called for a further postponement of the EU’s deforestation law (EUDR) until 2028, citing the challenges faced by its smallholder farmers in complying with requirements such as geolocation data logging. Despite already delaying the regulation, Brussels continues to face criticism from trading partners, including Brazil and the United States, who warn the law could disrupt supply chains and harm small businesses. EU member states are also pushing for simplified rules, with some proposing exemptions for low-risk countries. Indonesia’s deputy ambassador to the EU told the Financial Times: “Our big companies have the ability to adapt. But there are 8 million smallholdings, 17 million smallholders if you count families. They cannot navigate the regulation. They will be sidelined from the supply chains.”
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Further reading: Indonesia says EU deforestation law is still unworkable
Europe faces €250B grid investment gap amid rising energy demands
A new report from Boston Consulting Group warns that Europe’s electricity transmission operators face a €250 billion shortfall in planned grid investments over the next five years. With power demand rising due to electrification, AI data centers, and the integration of renewables, outdated infrastructure poses a serious risk. Recent blackouts in Spain, Portugal, and the Czech Republic highlight this risk. While TSOs aim to triple capital investments, limited cash flow, high debt, and weak equity markets pose significant threats to progress. The report claims that without innovative financing strategies, Europe risks undermining its clean energy goals by failing to deliver power from renewable sources to end users.
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Further reading: European grid investment plans face 250 billion euro shortfall
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: ダモ リ
