Today’s ESG Updates
- Winter Power Prices Surge Across Europe: Tight gas markets and lower hydro output have pushed power premiums to their highest since 2022.
- Ferrari Unveils First Electric Vehicle Model: The release of Luce marks a strategic shift as investors question appetite for ultra-luxury electric sports cars.
- Australia Urged to Cut Regulatory Complexity: Outgoing ASIC chair Joe Longo warns that excessive rules are deterring investment and weakening capital flows.
- Lufthansa Expands Carbon Removal Portfolio: Airline doubles share of removal projects to 20%, including Direct Air Carbon Capture and Storage for the first time.
Gas and hydropower shortfalls push up European winter electricity prices
European winter electricity prices have risen to their highest premium over summer contracts since the 2022 energy crisis, as gas supply disruptions and weak hydropower reserves increase pressure ahead of the heating season. Winter 2026 power contracts are trading more than 20% above equivalent 2027 benchmarks.
The rise has been driven by tighter gas markets following disruptions to LNG flows due to the U.S.-Israeli war in Iran, alongside unusually low hydropower availability. European gas storage levels stand at 38.2%, well below the seasonal norm of 52% and far short of the EU’s 90% target before winter.
Germany and Italy, both heavily reliant on gas-fired generation, have seen winter baseload prices climb above €110 and €120 per megawatt hour, respectively. Analysts warn that prolonged supply disruptions or further pressure on fuel inventories could trigger sharper price increases and renew concerns over Europe’s energy security.
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Further reading: European winter power price premium hits highest since 2022 on gas, hydro shortfalls
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Ferrari unveils first all-electric car, investors remain wary
Ferrari has unveiled Luce, its first fully electric vehicle, marking one of the biggest strategic shifts in the company’s history as luxury carmakers reassess demand for high-end EVs.
The five-seater, priced from €550,000 ($625,000) in Italy, can reach close to 200 miles per hour and was developed with design firm LoveFrom, founded by former Apple designer Jony Ive. Analysts will be watching demand closely as the model breaks from tradition with its electric powertrain, four-door layout, and absence of a classic engine roar. According to Angus MacKenzie, international bureau chief for MotorTrend, “there’s no real certainty as to what the market is for it”.
The launch comes amid growing pressure in the luxury EV market. Investors seem wary, with Ferrari shares falling 6% after the unveiling. This drop extends a decline that has wiped about $28 billion from its market value since October, when the company cut its electrification targets and lowered growth forecasts.
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Further reading: Ferrari Is Finally Going Electric. Will the Purists Buy It?
Related Articles
Here is a list of articles selected by our Editorial Board that have gained significant interest from the public:
Australia must simplify regulation to revive investment, says outgoing ASIC chief
Australia needs to simplify complex corporate rules to revive investment and attract capital, according to outgoing securities regulator chief Joe Longo, who warned excessive regulation was undermining innovation and public markets.
Longo, whose five-year term as chair of the Australian Securities and Investments Commission (ASIC) ends this week, said the country’s legal framework had become “almost impenetrable” despite being built “with good intent”. He argued that increasingly complex regulation was raising compliance costs, slowing decisions, and discouraging startups and companies from listing on public markets.
Reviving Australia’s capital markets was a key focus of Longo’s tenure, including efforts to streamline the listing process by cutting one week from the standard 20-week timeline. Despite those reforms, IPO activity remains weak, with just $11 million raised in the first quarter, among the lowest levels since the 2008 financial crisis.
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Further reading: Australia needs to ease complex rules to boost capital flows, says outgoing regulatory chief
Lufthansa expands its climate portfolio with a strong focus on carbon removal
Lufthansa Group has launched a new climate protection portfolio featuring 14 certified projects across Europe and other markets, as it shifts further towards technology-based carbon removal.
The updated mix doubles the share of removal projects to around 20% of the total portfolio and, for the first time, includes Direct Air Carbon Capture and Storage alongside other avoidance measures. The portfolio complements the group’s emissions-reduction and Sustainable Aviation Fuel strategy, enabling passengers to fund climate projects beyond direct flight emissions.
In 2025, Lufthansa passengers contributed to projects covering more than 710,000 tonnes of CO₂, up around 20% from the previous year. The airline is working with partners including Climeworks, First Climate, and 1PointFive, and all projects are certified under standards such as the Gold Standard.
The move comes as airlines face growing pressure to demonstrate credible decarbonization plans in a sector where emissions are difficult to abate, particularly on long-haul routes.
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Further reading: Lufthansa Expands Climate Portfolio With 14 Certified Projects
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Aerial view of a hydropower dam. Cover Photo Credit: Dan Meyers.
