Today’s ESG Updates
- Trump Budget Bill Backs Fossil Fuels, Cuts Green Incentives: Legislation boosts oil and gas while slashing renewable energy support.
- EU to Use Global Carbon Credits in Climate Plan: For the first time, international CO₂ offsets could help EU states meet emissions goals.
- Uniper to Cut 400 Jobs in Market Downturn: The German utility cites weak prices and delayed regulations as it moves to streamline operations.
- Germany Could Hit Climate Goals by Ending Fossil Subsidies: Scrapping annual support for coal, oil, and gas would deliver major emissions reductions.
Trump’s budget overhauls energy policy, slashing renewables and backing fossil fuels
A U.S. Senate budget reconciliation bill leans heavily toward fossil fuels by accelerating phase-outs of the 30% solar and wind tax credit and adding domestic sourcing criteria for renewables. It extends support for nuclear, hydropower, geothermal, hydrogen, and carbon capture projects, while stripping unspent Inflation‑Reduction‑Act (IRA) funds and limiting home/commercial energy efficiency credits. The legislation mandates expanded oil and gas lease sales in Arctic Alaska and the Gulf, lowers coal royalty rates, and scraps some Strategic Petroleum Reserve purchases. Overall, it shifts federal energy policy toward fossil fuel production at the expense of clean energy investment.
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Further reading: Trump’s budget bill boosts fossil fuels, hits renewable energy
EU plans to use global carbon credits to reach 2040 climate target
The European Commission has drafted a legally binding 2040 climate target of a 90% reduction in net greenhouse gas emissions compared to 1990 levels. For the first time, member states could meet up to 3 percentage points of this target using internationally-sourced carbon credits, from forest or other projects in developing countries, starting in 2036. The move provides flexibility to industries facing high costs but faces criticism from climate advisers who fear it may weaken domestic decarbonisation efforts. Final approval, after negotiations with member states and the European Parliament, is due ahead of a mid‑September UN submission.
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Further reading: EU includes international CO2 credits in climate goal for first time
Uniper cuts 400 jobs amid energy market turmoil
German state-owned utility Uniper plans to reduce its workforce by about 400 jobs – around 5% – due to falling wholesale electricity prices, delayed regulations, and broader market pressures. The company described the energy market environment as “challenging” and said it is evaluating other cost‑saving measures to support profitability. This move reflects ongoing difficulties for utilities across Europe, who are navigating a transition to cleaner power amid weak pricing and investment uncertainty.
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Further reading: Uniper to cut 400 jobs over ‘challenging’ market environment
Cutting fossil fuel subsidies could help Germany meet climate targets
A study from ZEW reveals that eliminating Germany’s fossil fuel subsidies – approximately €41 billion in 2023 – could help meet around one-third of the country’s climate targets without new policy instruments like carbon pricing. Germany is the EU’s top subsidizer of coal, oil, and gas. The research suggests that redirecting these funds – including accounting for hidden costs like health and environmental damage – could boost public finances by nearly 5% of consumption. Globally, such subsidies reach nearly $6 trillion annually. Environmental groups argue that current measures, such as gas price relief funded by CO₂ trading, merely prop up fossil fuels.
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Further reading: Germany could hit third of climate goals by cutting fossil fuel subsidies, study finds
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Wikicommons
