2025-05-28 06:18

EU within 1 percentage point of 2030 climate target Europe is fastest-warming continent, facing extreme weather Progress comes despite pressure to weaken climate agenda Countries concerned about impact on struggling industries BRUSSELS, May 28 (Reuters) - The European Union is nearly on track to reach its main climate target for this decade, with countries' existing CO2-cutting plans set to bring the bloc within one percentage point of the goal, the European Commission said on Wednesday. The EU is on course to reduce its net greenhouse gas emissions by 54% by 2030, compared with 1990 levels - just shy of its legally-binding goal of a 55% cut, the Commission said in an analysis of existing policies in the EU and its member countries. Sign up here. The analysis showed governments have upped their efforts to curb emissions in the last two years, even as Brussels faces a political backlash from some countries demanding the EU weaken its green agenda. Europe is the world's fastest-warming continent, with crop-wrecking floods and deadly wildfires linked to climate change hitting EU nations with increasing frequency. But with industries reeling from high energy prices after Russia slashed gas deliveries in 2022, and the prospect of U.S. tariffs, the EU faces mounting calls from governments to soften green measures for struggling businesses. EU climate commissioner Wopke Hoekstra said the EU would invest more in clean technologies to ensure industries can prosper from Europe's green transition. "Emissions are down 37% since 1990, while the economy has grown nearly 70%, proving climate action and growth go hand in hand. Now we must build on this momentum," Hoekstra said. By 2023, the EU had reduced its emissions by 37% from 1990 levels, the latest available data show. The Commission cited strong progress in the energy sector, with renewable sources covering 24% of EU energy consumption in 2023. Agriculture and transport are among the sectors lagging behind, it said. Farmers staged months of protests across Europe last year, criticising EU green policies. The agriculture sector has largely escaped EU climate measures, and Brussels weakened some environmental rules for farmers in response to the protests. The environmental impact of land use - which includes farming and forestry - has also been exacerbated by record-breaking wildfires, which deplete the land's ability to store carbon. The EU's "sink" of carbon stored in natural ecosystems like grasslands and forests is now not expected to improve by 2030, the Commission said. The EU's 2030 climate goal is one of the most ambitious among major economies worldwide. The Commission is preparing to propose a 2040 climate target, but has delayed the proposal for months amid political pushback. https://www.reuters.com/sustainability/cop/eu-almost-track-reach-2030-climate-goal-2025-05-28/

2025-05-28 06:13

LITTLETON, Colorado, May 28 (Reuters) - U.S. President Donald Trump's sweeping tax and spending bill calls for drastic cuts to clean energy tax credits that have been major drivers of the boom seen in utility-scale renewable power and battery capacity over the past three years or so. The bill was passed by the U.S. House of Representatives by a narrow margin last week, but must now get approval from the U.S. Senate before becoming law. Sign up here. Several influential senators have raised objections to certain elements of the bill - especially proposed cuts to health care benefits - which suggests changes to the final package can be expected. But among Republican lawmakers there remains broad support for gutting Biden-era clean energy incentives, which remain at risk of a full repeal by the Republican-majority Congress. Below are some key projections on U.S. energy generation capacity, investments, fuel use and emissions if the current clean energy incentives are repealed under the new tax law. CAPACITY CRUNCH A full repeal of the Biden-era clean energy incentives would drastically reshape the country's electricity generation infrastructure landscape over the coming decade. According to the REPEAT Project - which analyses the impact of federal policies on the energy sector - total cumulative electricity generation capacity growth could fall by half between now and 2035 if current incentives are scrapped. Under the existing incentive and tax credit system, the REPEAT Project estimates that total electricity generation capacity would climb by an average of around 100 gigawatts (GW) per year from now through 2035. Existing incentives are on track to boost generation capacity from solar systems by around 46 GW/year, wind capacity by around 18 GW/year, natural gas capacity by around 14 GW/year, and battery storage capacity by around 16 GW/year. If all of the current clean energy tax credits are repealed, the pace of capacity additions would fall to around 48 GW/year, due mainly to steep declines in renewable energy and battery storage capacity construction. Under a full repeal scenario - where all existing clean energy incentives are phased out as quickly as possible - the average capacity growth of utility-scale solar systems would slow to around 19 GW/year - or less than half the current pace. Wind generation and battery storage capacity growth would also fall by roughly half, while natural gas generation capacity would drop by around 16% to around 12 GW/year. GROWTH BRAKES With lower tax breaks and incentives leading to a slower build-out of electricity generation capacity, the growth in total electricity supplies is also projected to slow under a full repeal scenario. Under the current incentive structure, the resulting expansion in electricity generation capacity would accommodate a roughly 30% increase in total U.S. electricity consumption by around 2035, to around 5,275 billion kilowatt hours by 2035. However, if the current incentives are repealed the resulting slower capacity expansion would limit electricity consumption growth to around 5,066 billion kilowatt hours by 2035, or 17% less than if the incentives remained in place. That shortfall in electricity consumption would in turn have a ripple effect on overall economic growth, with tighter electricity supplies triggering higher energy costs for consumers. CHANGING MIX The ditching of clean energy incentives would also alter the country's projected electricity generation mix. Under the existing incentive system, the proportion of clean energy sources within total U.S. electricity generation would rise from around 40% now to over 70% by 2035, REPEAT data shows. However, if the clean incentives are repealed, the clean power share would only rise to around 54% of the total mix by 2035, due to sharply slower clean power additions. The dropped incentives would also have a major impact on fossil fuel consumption patterns, which are currently trending broadly lower but would rise again if the Biden-era clean energy policies are scrapped. If current policies were maintained, U.S. use of thermal coal - the highest polluting fossil fuel - would drop by over 85% from current levels as other cleaner sources of power displaced coal plants. However, a full repeal of clean incentives would extend the use of coal-fired power within the U.S. energy system, and result in only a 14% decline in coal use volumes from current levels by 2035. Natural gas use by U.S. electricity producers would expand sharply if current clean power incentives are scrapped. REPEAT Project data shows that total natural gas demand could climb by nearly 30% from current levels by 2035 if clean incentives are scrapped, which compares to around an 18% rise in projected gas use if current clean incentives are maintained. EMISSIONS & EXPENDITURES U.S. greenhouse gas emissions are currently on track to decline by 28% by 2035, assuming current clean energy incentives remain in place. If those policies are repealed, however, greenhouse gas emissions would decline by only 8% by 2035, due to the resulting increased reliance on fossil fuels for power. Lower clean power incentives would in turn trigger changes to investments in the U.S. energy system, potentially wiping out billions of dollars of projected capital allocations. Lower investments in the U.S. transmission system would also trigger higher average energy costs for consumers, with annual household expenditure on energy set to climb by over $400 a year by 2035 if current policies are cut, according to REPEAT. The opinions expressed here are those of the author, a columnist for Reuters. https://www.reuters.com/markets/commodities/key-us-clean-energy-charts-that-track-trumps-tax-bill-impact-maguire-2025-05-28/

2025-05-28 06:06

Forest Fund VI has final close at 375 million pounds London, Welsh local government schemes among investors Comes as more institutions look to access real assets LONDON, May 28 (Reuters) - Alternative asset investor Gresham House has raised $500 million for its biggest ever forestry fund, with backing from investors including several British local government pension schemes, an executive told Reuters. Investing in timber has become increasingly popular with asset owners looking for returns uncorrelated with the broader financial markets, and which also help them hit their environmental goals. Sign up here. The final close for Forest Fund VI, which will target returns of around 8%, will see 375 million pounds ($508 million) invested in planting new and existing forests across the country, said Olly Hughes, who heads the forestry team. "It's the largest fundraise in a single fund that we've raised and a signal of the interest and the momentum that's building around the sector as a whole." Historically, most investment demand has been seen in the United States, with the fragmented mainland Europe and British markets more difficult to invest in at scale, he said. The fundraising was backed by London CIV, which invests for a number of local government pension schemes in the capital, member schemes in the Wales Pension Partnership and an unidentified Japanese investor. It also follows the recent signing of the Mansion House Accord, where some of Britain's largest workplace pensions providers signalled a willingness to increase their allocation to private markets in the country. "This (fundraising) ... has enabled a number of larger-scale UK and international institutional investors to access the market for the first time," and would also help the country achieve its broader sustainability goals, Hughes said. With Britain importing 80% of its timber and wood fibre, the fund would help bolster rural economic growth and the timber used in local construction and other industries in a more environmentally-friendly way, he added. The fund aims to lock away 4.7 million tons of climate-damaging carbon dioxide over the next 25 years, and could potentially generate carbon credits which could be sold to add to its returns. "Forestry offers the compelling combination of uncorrelated financial returns and measurable environmental benefits – from boosting biodiversity to contributing meaningfully to carbon sequestration," said Elwyn Williams, Chair of the Joint Governance Committee for the Wales Pension Partnership, in a statement. ($1 = 0.7409 pounds) https://www.reuters.com/sustainability/climate-energy/gresham-house-raises-500-million-its-biggest-ever-forests-fund-2025-05-28/

2025-05-28 05:54

MUMBAI, May 28 (Reuters) - The Indian rupee declined on Wednesday in the face of month-end dollar demand from importers and a broad recovery in the greenback following better-than-expected U.S. consumer confidence data. The rupee weakened to 85.6575 against the U.S. dollar as of 11:20 a.m. IST, down 0.3% on the day. Sign up here. Traders pointed to a heightened appetite to buy dollars at the daily reference rate published by the Reserve Bank of India, likely spurred by month-end corporate payments. The daily fix was last quoted at 0.40/0.60 paisa premium, a trader at a Mumbai-based bank said. Anticipation of portfolio dollar outflows related to an equity block deal is prompting some intra-day speculative bets, weighing on the rupee, the trader said. British American Tobacco (BATS.L) , opens new tab said on Tuesday it intends to sell a 2.3% stake in Indian consumer goods company ITC (ITC.NS) , opens new tab, worth about $1.4 billion in a block trade deal. In the near-term, the rupee is expected to hover between 84.80 and 85.80, said Amit Pabari, managing director at FX advisory firm CR Forex. The dollar index, meanwhile, rose 0.3% to 99.8, boosted by upbeat economic data, which also helped Wall Street surge overnight as investors returned from an extended weekend break. Asian equities were mostly stronger on the day but India's benchmark indexes, the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab, were slightly in the red. The country's benchmark 10-year bond yield eased below a key level, propelled by bets of deeper interest rate cuts by the central bank and comforted by a fall in long tenor U.S. Treasury yields. "Broadly, we saw DM (developed market) curves bull flatten amidst hopes that there could be more policy support for long-end bonds. Month-end flows probably helped as well," DBS said in a note. https://www.reuters.com/world/india/rupee-bogged-down-by-month-end-importer-dollar-bids-firmer-greenback-2025-05-28/

2025-05-28 05:36

Shares dip after recent jump Nvidia reports second quarter revenue in-line with estimates U.S. Treasuries auction shows strong foreign demand Dollar inches higher NEW YORK, May 28 (Reuters) - Global shares edged lower on Wednesday, snapping two straight sessions of gains, with investors weighing Nvidia's (NVDA.O) , opens new tab results, while oil prices rose amid supply concerns as OPEC+ left production unchanged and as U.S. authorities barred Chevron (CVX.N) , opens new tab from exporting Venezuelan crude. Market sentiment had been lifted by easing of trade tensions between the U.S. and Europe, after President Donald Trump delayed plans to impose 50% tariffs on European goods. Trump said on Tuesday that the European Union's move to set up trade meetings was positive. Sign up here. Nvidia (NVDA.O) , opens new tab reported sales that were ahead of analyst estimates but second-quarter revenue forecasts were slightly below Wall Street expectations, as the chipmaker faces tighter U.S. curbs on exports of its AI chips to China. The semiconductor maker was the last of the "Magnificent 7" tech companies to report earnings this season. Its shares finished down 0.5% in regular hours but were up 3% in extended trading. On Wall Street, all three indexes finished lower, led by utilities, energy, and materials stocks. The Dow Jones Industrial Average (.DJI) , opens new tab fell 0.58% to 42,098.70, the S&P 500 (.SPX) , opens new tab fell 0.56% to 5,888.55 and the Nasdaq Composite (.IXIC) , opens new tab fell 0.51% to 19,100.94. Europe's STOXX 600 (.STOXX) , opens new tab finished down 0.61%, after having risen over the last two days on the back of Trump's EU tariff pause. Britain's FTSE (.FTSE) , opens new tab fell 0.59%. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 0.54% to 876.37. "This is part of the price discovery process," said Bill Strazzullo, chief markets strategist at Bell Curve Trading in Boston. "I think we are going to be in a range for the next couple of months because there's still a lot of uncertainty because we still don't know how the whole tariff thing is going to play out and how that's going to impact inflation, the economy and how the Fed is going to respond." OPEC+, the Organization of the Petroleum Exporting Countries and allies, did not change output policy. It agreed to establish a mechanism for setting baselines for its 2027 oil production. The Trump administration issued a new authorization for Chevron (CVX.N) , opens new tab that would let it keep assets in Venezuela but not export oil or expand activities, Reuters reported on Tuesday, citing sources. Brent crude futures settled up 1.26% to $64.90 a barrel, while U.S. West Texas Intermediate crude gained 1.56% to stand at $61.84 a barrel. Federal Reserve officials at their last meeting acknowledged they could face "difficult tradeoffs" in coming months in the form of rising inflation alongside rising unemployment, according to newly released minutes of their last meeting earlier this month. U.S. Treasury yields were higher on the session, with the yield on benchmark U.S. 10-year notes up 3.9 basis points to 4.473% and the 30-year bond yield gaining 2.8 basis points to 4.9676%. An auction of $70 billion in U.S. five-year Treasuries, which cleared at 4.071%, showed healthy foreign demand. The U.S. dollar gained against peers including the euro and yen amid optimism about possible trade deals and following soft demand for Japanese 40-year bonds. The dollar strengthened 0.35% to 144.82 against the Japanese yen , but was flat at 0.827 against the Swiss franc . The euro down 0.32% at $1.1292. Gold prices fell. Spot gold fell 0.18% to $3,293.66 an ounce. U.S. gold futures settled 0.2% lower at $3,294.90. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-05-28/

2025-05-28 05:29

May 28 (Reuters) - Australia's corporate regulator said on Wednesday that it has initiated civil penalty proceedings against Liang (Allan) Guo, a former director of the failed cryptocurrency exchange firm Blockchain Global, alleging multiple breaches of duties. The Australian Securities and Investments Commission's allegations in the federal court are in relation to Guo's involvement in Blockchain Global's operation of a cryptocurrency exchange platform, ACX Exchange, which collapsed around December 2019, when customers began being unable to withdraw funds or cryptocurrency from their accounts. Sign up here. The allegations relate to Guo's dealings with ACX Exchange customer funds, statements made about those dealings and obligations to keep proper books and records. The regulator had started an investigation into the firm in January 2024, following a receipt of a report from the firm's liquidators, which said that Blockchain Global owed around A$58 million ($37.3 million) to unsecured creditors as of October 2, 2023. Guo was barred from leaving the country in February 2024, but left Australia on September 23, 2024, following the expiry of his travel restraint orders, the regulator said. Blockchain Global had no published contact information and could not immediately be reached for comment. The firm's liquidator, Andrew Yeo, did not immediately respond to Reuters' request for comment. ($1 = 1.5562 Australian dollars) https://www.reuters.com/sustainability/boards-policy-regulation/australia-sues-ex-director-crypto-exchange-blockchain-global-over-alleged-duty-2025-05-28/