Today’s ESG Updates
- EU weighs carbon market changes: European carbon prices fell after the European Commission signalled potential adjustments to the bloc’s emissions trading system to help ease rising energy costs, though member states remain divided over intervening in the market.
- Asia turns back to coal: Asian utilities are increasing coal-fired power generation as the U.S.–Israeli war on Iran disrupts LNG shipments and drives prices higher, raising concerns about setbacks to regional energy transition efforts.
- Canada sees rising energy demand: Canada’s energy regulator expects electricity demand to rise sharply by 2050 due to electric vehicles and AI data centres, while natural gas production is also projected to grow, largely driven by LNG exports.
- Russian strike pollutes Moldova water supply: An attack on a hydroelectric plant in Ukraine caused an oil spill that contaminated the Dniestr River, forcing water cuts in Moldova’s third-largest city and triggering an environmental alert.
EU carbon market slides on intervention talks
European carbon prices fell more than 5% on Tuesday after European Commission President Ursula von der Leyen said the EU may release additional emissions permits to help ease rising energy costs. In a letter to EU leaders ahead of a Brussels summit, she outlined possible adjustments to the EU’s Emissions Trading System (ETS), including changes to a reserve that regulates permit supply and moderating plans to reduce free CO2 allowances for industry. The benchmark EU carbon contract fell to around €66 per tonne, its lowest level since April 2025.
The proposals are intended to ease high energy costs linked to geopolitical tensions and the U.S.-Israeli conflict with Iran. However, EU member states remain divided, with some favouring limited adjustments while others are calling for stronger intervention in the carbon market.
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Further reading: European carbon prices slide as EU considers intervening in market
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Asia turns to coal as LNG supply shock drives energy costs higher
Asian utilities are ramping up coal-fired power generation as the U.S.-Israeli war on Iran disrupts liquified natural gas (LNG) shipments and drives prices to three-year highs. Shipping through the Strait of Hormuz has largely halted, and Qatar has paused exports, creating the second major LNG supply shock in four years. Countries including Bangladesh, the Philippines, and Thailand are boosting coal power output, while Pakistan is increasing domestic generation to reduce reliance on volatile gas imports.
Analysts warn the disruption could curb LNG demand growth across Asia and put up to $107 billion in planned LNG infrastructure investments in South Asia at risk. While coal prices have also risen, the increase remains far smaller than LNG’s surge. The volatility is reinforcing calls for greater investment in renewable energy to reduce reliance on imported fossil fuels.
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Further reading: Asia pivots to coal as Middle East conflict chokes LNG supply
Related Articles
Here is a list of articles selected by our Editorial Board that have gained significant interest from the public:
Canada sees rising electricity demand and natural gas production by 2050
Canada’s electricity demand and natural gas production are expected to grow significantly by 2050, according to a new long-term outlook from the Canada Energy Regulator. The report projects that electricity demand could rise by 26% to 85% from 2023 levels, driven largely by increased adoption of electric vehicles and the expanding energy needs of AI data centres. The regulator assessed multiple scenarios, including varying energy prices and stronger climate policies.
Natural gas production is projected to increase from 18.3 billion cubic feet per day in 2024 to 21 and 32 bcf/d by 2050, with much of the growth linked to LNG exports. Canadian crude oil output could range from 4.8 million to 6.5 million barrels per day by 2050, depending on prices and developments in climate policy.
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Further reading: Canada electricity demand, natural gas production to accelerate by 2050, regulator says
Russian strike on Ukrainian hydro plant pollutes river, cuts water supply in Moldova
A Russian strike on the Novodnistrovsk hydroelectric plant in southern Ukraine caused an oil spill that polluted the Dniestr River and disrupted water supplies in neighbouring Moldova, officials said. Authorities cut water access in the city of Balti, home to around 90,000 people, and three nearby towns. At the same time, schools were closed, and a 15-day environmental alert was declared as officials assessed the damage. Moldovan President Maia Sandu blames Russia for the incident, warning it posed serious risks to the country’s environment and water security.
Moldova’s foreign ministry summoned Russia’s ambassador over the attack, while the European Union pledged support to address the pollution. The incident highlights how Russia’s war in Ukraine is creating environmental and infrastructure impacts beyond the conflict zone.
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Further reading: Pollution from Russian strike on Ukraine hydro plant cuts water to Moldovan city
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Frederic Köberl
