Today’s ESG Updates
- Germany Overhauls Climate Rules: Germany moves to fast-track major infrastructure projects while replacing its contested heating law with a more flexible building modernisation framework.
- China Advances Next-Gen Nuclear: China prepares to launch commercial operation of its first small modular reactor (SMR) in 2026, marking a major milestone for nuclear innovation.
- Italy Expands LNG Infrastructure: Snam boosts its control of Italy’s LNG capacity, acquiring a 48% stake in the Livorno terminal as LNG imports rise nearly 40% this year.
- IEA Narrows 2026 Oil Surplus Forecast: The IEA trims its projected oil market surplus, citing sanctions-driven supply pressures alongside stronger demand from an improving global economy.
Germany fast-tracks infrastructure as coalition retreats from heating law
Germany’s coalition government agreed to a new law to fast-track infrastructure projects while scrapping the controversial clean-heating mandate in favor of a broader Building Modernisation Act. Chancellor Friedrich Merz said key transport projects will now be designated as being of “overriding public interest”, accelerating planning and approval through digital-only procedures. Some rail electrification projects will no longer require environmental impact assessments, reflecting a push to revive Germany’s sluggish economy. The revised heating policy keeps emissions-reduction goals but gives households greater flexibility. With five state elections in 2026, the coalition seeks political wins amid falling support and rising far-right momentum.
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Further reading: German coalition agrees to fast-track infrastructure, scrap unpopular heating law
Snam expands LNG control as Italy ramps up import capacity
Italy’s Snam will acquire a 48.2% stake in the Livorno offshore LNG terminal, raising its ownership to 97.3% and further consolidating control over the country’s key gas infrastructure. LNG imports to Italy rose nearly 40% this year, with flows reaching 18.7 bcm, covering around one third of domestic gas demand as Rome seeks to diversify energy supplies. Snam’s CEO said the deal strengthens Italy’s energy security as LNG plays a growing strategic role. The OLT terminal, with a 5 bcm regasification capacity, is one of five LNG hubs Snam now controls. The €126 million transaction is expected to close in 2026, pending regulatory approval.
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Further reading: Italy’s Snam tightens grip on LNG terminal as liquefied gas imports rise
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China prepares first commercial SMR launch as global nuclear race accelerates
China will begin commercial operation of its first small modular nuclear reactor (SMR), the Linglong One, in the first half of 2026, according to the China National Nuclear Corporation. Approved by the International Atomic Energy Agency in 2016, the SMR is being built on Hainan Island and aims to supply electricity in regions with weaker grids. SMRs are smaller, cheaper, and faster to deploy than traditional reactors and can be used in remote locations or even on ships. As China advances deployment, other countries, including the United States and the United Kingdom, are accelerating SMR funding and approvals, signaling rising global interest in next-generation nuclear energy.
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Further reading: China to start commercial operation of first small modular nuclear reactor in 2026
IEA narrows 2026 oil surplus outlook as sanctions squeeze supply
The International Energy Agency (IEA) trimmed its forecast for the 2026 global oil surplus, projecting supply will exceed demand by 3.84 million bpd, slightly lower than last month’s estimate. The revision reflects weaker supply growth, as sanctions on Russia and Venezuela curb exports. Meanwhile, an improving macroeconomic outlook, easing tariff concerns, and lower oil prices have led the IEA to raise global demand forecasts for 2025 and 2026. The agency expects parallel markets to persist with ample crude supply but tight fuel markets due to limited refining capacity outside China and new EU restrictions on Russian refined products.
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Further reading: IEA trims world oil market surplus forecast for 2026
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Parliament. Cover Photo Credit: Wikimedia Commons
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