Venture capitalist Finn Murphy believes world leaders could soon resort to deflecting sunlight into space if the Earth gets unbearably hot. That’s why he’s invested more than $1 million in Stardust Solutions, a leading solar geoengineering firm that’s developing a system to reduce warming by enveloping the globe in reflective particles. Murphy isn’t rooting for climate catastrophe. But with global temperatures soaring and the political will to limit climate change waning, Stardust “can be worth tens of billions of dollars,” he said. “It would be definitely better if we lost all our money and this wasn’t necessary,” said Murphy, the 33-year-old founder of Nebular, a New York investment fund named for a vast cloud of space dust and gas. Murphy is among a new wave of investors who are putting millions of dollars into emerging companies that aim to limit the amount of sunlight reaching the Earth — while also potentially destabilizing weather patterns, food supplies and global politics. He has a degree in mathematics and mechanical engineering and views global warming not just as a human and political tragedy, but as a technical challenge with profitable solutions. Solar geoengineering investors are generally young, pragmatic and imaginative — and willing to lean into the adventurous side of venture capitalism. They often shrug off the concerns of scientists who argue it’s inherently risky to fund the development of potentially dangerous technologies through wealthy investors who could only profit if the planet-cooling systems are deployed. “If the technology works and the outcomes are positive without really catastrophic downstream impacts, these are trillion-dollar market opportunities,” said Evan Caron, a co-founder of the energy-focused venture firm Montauk Capital. “So it’s a no-brainer for an investor to take a shot at some of these.” More than 50 financial firms, wealthy individuals and government agencies have collectively provided more than $115.8 million to nine startups whose technology could be used to limit sunlight, according to interviews with VCs, tech company founders and analysts, as well as private investment data analyzed by POLITICO’s E&E News. That pool of funders includes Silicon Valley’s Sequoia Capital, one of the world’s largest venture capital firms, and four other investment groups that have more than $1 billion of assets under management. Of the total amount invested in the geoengineering sector, $75 million went to Stardust, or nearly 65 percent. The U.S.-Israeli startup is developing reflective particles and the means to spray and monitor them in the stratosphere, some 11 miles above the planet’s surface. At least three other climate-intervention companies have also raked in at least $5 million. The cash infusion is a bet on planet-cooling technologies that many political leaders, investors and environmentalists still consider taboo. In addition to having unknown side effects, solar geoengineering could expose the planet to what scientists call “termination shock,” a scenario in which global temperatures soar if the cooling technologies fail or are suddenly abandoned. Still, the funding surge for geoengineering companies pales in comparison to the billions of dollars being put toward artificial intelligence. OpenAI, the maker of ChatGPT, has raised $62.5 billion in 2025 alone, according to investment data compiled by PitchBook. The investment pool for solar geoengineering startups is relatively shallow in part because governments haven’t determined how they would regulate the technology — something Stardust is lobbying to change. As a result, the emerging sector is seen as too speculative for most venture capital firms, according to Kim Zou, the CEO of Sightline Climate, a market intelligence firm. VCs mostly work on behalf of wealthy individuals, as well as pension funds, university endowments and other institutional investors. “It’s still quite a niche set of investors that are even thinking about or looking at the geoengineering space,” Zou said. “The climate tech and energy tech investors we speak to still don’t really see there being an investable opportunity there, primarily because there’s no commercial market for it today.” AEROSOLS IN THE STRATOSPHERE Stardust and its investors are banking on signing contracts with one or more governments that could deploy its solar geoengineering system as soon as the end of the decade. Those investors include Lowercarbon Capital, a climate-focused firm co-founded by billionaire VC Chris Sacca, and Exor, the holding company of an Italian industrial dynasty and perhaps the most mainstream investment group to back a sunlight reflection startup. Even Stardust’s supporters acknowledge that the company is far from a sure bet. “It’s unique in that there is not currently demand for this solution,” said Murphy, whose firm is also supporting out-there startups seeking to build robots and data centers in space. “You have to go and create the product in order to potentially facilitate the demand.” Lowercarbon partner Ryan Orbuch said the firm would see a return on its Stardust investment only “in the context of an actual customer who can actually back many years of stable, safe deployment.” Exor, another Stardust investor, didn’t respond to a request for comment. Other startups are trying to develop commercial markets for solar geoengineering. Make Sunsets, a company funded by billionaire VC Tim Draper, releases sulfate-filled weather balloons that pop when they reach the stratosphere. It sells cooling credits to individuals and corporations based on the theory that the sulfates can reliably reduce warming. There are questions, however, about the science and economics underpinning the credit system of Make Sunsets, according to the investment bank Jeffries. “A cooling credit market is unlikely to be viable,” the bank said in a May 2024 note to clients. That’s because the temperature reductions produced by sulfate aerosols vary by altitude, location and season, the note explained. And the warming impacts of carbon dioxide emissions last decades — much longer than any cooling that would be created from a balloon’s worth of sulfate. Make Sunsets didn’t respond to a request for comment. The company has previously attracted the attention of regulators in the U.S. and Mexico, who have claimed it began operating without the necessary government approvals. Draper Associates says on its website that it’s “shaping a future where the impossible becomes everyday reality.” The firm has previously backed successful consumer tech firms like Tesla, Skype and Hotmail. “It is getting hotter in the Summer everywhere,” Tim Draper said in an email. “We should be encouraging every solution. I love this team, and the science works.” THE NEXT FRONTIER One startup is pursuing space-based solar geoengineering. EarthGuard is attempting to build a series of large sunlight deflectors that would be positioned between the sun and the planet, some 932,000 miles from the Earth. The company did not respond to emailed questions. Other space companies are considering geoengineering as a side project. That includes Gama, a French startup that’s designing massive solar sails that could be used for deep space travel or as a planetary sunshade, and Ethos Space, a Los Angeles company with plans to industrialize the moon. Both companies are part of an informal research network established by the Planetary Sunshade Foundation, a nonprofit advocating for the development of a trillion-dollar parasol for the globe. The network mainly brings together collaborators on the sidelines of space industry conferences, according to Gama CEO Andrew Nutter. “We’re willing to contribute something if we realize it’s genuinely necessary and it’s a better solution than other solutions” to the climate challenge, Nutter said of the space shade concept. “But our business model does not depend on it. If you have dollar signs hanging next to something, that can bias your decisions on what’s best for the planet.” Nutter said Gama has raised about $5 million since he co-founded the company in 2020. Its investors include Possible Ventures, a German VC firm that’s also financing a nuclear fusion startup and says on its website that the firm is “relentlessly optimistic — choosing to focus on the possibilities rather than obsess over the risks.” Possible Ventures did not respond to a request for comment. Sequoia-backed Reflect Orbital is another space startup that’s exploring solar geoengineering as a potential moneymaker. The company based near Los Angeles is developing a network of satellite mirrors that would direct sunlight down to the Earth at night for lighting industrial sites or, eventually, producing solar energy. Its space mirrors, if oriented differently, could also be used for limiting the amount of sun rays that reach the planet. “It’s not so much a technological limitation as much as what has the highest, best impact. It’s more of a business decision,” said Ally Stone, Reflect Orbital’s chief strategy officer. “It’s a matter of looking at each satellite as an opportunity and whether, when it’s over a specific geography, that makes more sense to reflect sunlight towards or away from the Earth.” Reflect Orbital has raised nearly $28.7 million from investors including Lux Capital, a firm that touts its efforts to “turn sci-fi into sci-fact” and has invested in the autonomous defense systems companies Anduril and Saildrone.” Sequoia and Lux didn’t respond to requests for comment. The startup hopes to send its first satellite into space next summer, according to Stone. SpaceX CEO Elon Musk, whose aerospace company already has an estimated fleet of more than 8,800 internet satellites in orbit, has also suggested using the circling network to limit sunlight. “A large solar-powered AI satellite constellation would be able to prevent global warming by making tiny adjustments in how much solar energy reached Earth,” Musk wrote on X last month. Neither he nor SpaceX responded to an emailed request for comment. DON’T CALL IT GEOENGINEERING Other sunlight-reflecting startups are entering the market — even if they’d rather not be seen as solar geoengineering companies. Arctic Reflections is a two-year-old company that wants to reduce global warming by increasing Arctic sea ice, which doesn’t absorb as much heat as open water. The Dutch startup hasn’t yet pursued outside investors. “We see this not necessarily as geo-engineering, but rather as climate adaptation,” CEO Fonger Ypma said in an email. “Just like in reforestation projects, people help nature in growing trees, our idea is that we would help nature in growing ice.” The main funder of Arctic Reflections is the British government’s independent Advanced Research and Invention Agency. In May, ARIA awarded $4.41 million to the company — more than four times what it had raised to that point. Another startup backed by ARIA is Voltitude, which is developing micro balloons to monitor geoengineering from the stratosphere. The U.K.-based company didn’t respond to a request for comment. Altogether, the British agency is supporting 22 geoengineering projects, only a handful of which involve startups. “ARIA is only funding fundamental research through this programme, and has not taken an equity stake in any geoengineering companies,” said Mark Symes, a program director at the agency. It also requires that all research it supports “must be published, including those that rule out approaches by showing they are unsafe or unworkable.” Sunscreen is a new startup that is trying to limit sunlight in localized areas. It was founded earlier this year by Stanford University graduate student Solomon Kim. “We are pioneering the use of targeted, precision interventions to mitigate the destructive impacts of heatwave on critical United States infrastructure,” Kim said in an email. But he was emphatic that “we are not geoengineering” since the cooling impacts it’s pursuing are not large scale. Kim declined to say how much had been raised by Sunscreen and from what sources. As climate change and its impacts continue to worsen, Zou of Sightline Climate expects more investors to consider solar geoengineering startups, including deep-pocketed firms and corporations interested in the technology. Without their help, the startups might not be able to develop their planet-cooling systems. “People are feeling like, well wait a second, our backs are kind of starting to get against the wall. Time is ticking, we’re not really making a ton of progress” on decarbonization, she said. “So I do think there’s a lot more questions getting asked right now in the climate tech and venture community around understanding it,” Zou said of solar geoengineering. “Some of these companies and startups and venture deals are also starting to bring more light into the space.” Karl Mathiesen contributed reporting.

A fair, fast and competitive transition begins with what already works and then rapidly scales it up.  Across the EU commercial road transport sector, the diversity of operations is met with a diversity of solutions. Urban taxis are switching to electric en masse. Many regional coaches run on advanced biofuels, with electrification emerging in smaller applications such as school services, as European e-coach technologies are still maturing and only now beginning to enter the market. Trucks electrify rapidly where operationally and financially possible, while others, including long-haul and other hard-to-electrify segments, operate at scale on HVO (hydrotreated vegetable oil) or biomethane, cutting emissions immediately and reliably. These are real choices made every day by operators facing different missions, distances, terrains and energy realities, showing that decarbonization is not a single pathway but a spectrum of viable ones.  Building on this diversity, many operators are already modernizing their fleets and cutting emissions through electrification. When they can control charging, routing and energy supply, electric vehicles often deliver a positive total cost of ownership (TCO), strong reliability and operational benefits. These early adopters prove that electrification works where the enabling conditions are in place, and that its potential can expand dramatically with the right support. > Decarbonization is not a single pathway but a spectrum of viable ones chosen > daily by operators facing real-world conditions. But scaling electrification faces structural bottlenecks. Grid capacity is constrained across the EU, and upgrades routinely take years. As most heavy-duty vehicle charging will occur at depots, operators cannot simply move around to look for grid opportunities. They are bound to the location of their facilities.  The recently published grid package tries, albeit timidly, to address some of these challenges, but it neither resolves the core capacity deficiencies nor fixes the fundamental conditions that determine a positive TCO: the predictability of electricity prices, the stability of delivered power, and the resulting charging time. A truck expected to recharge in one hour at a high-power station may wait far longer if available grid power drops. Without reliable timelines, predictable costs and sufficient depot capacity, most transport operators cannot make long-term investment decisions. And the grid is only part of the enabling conditions needed: depot charging infrastructure itself requires significant additional investment, on top of vehicles that already cost several hundreds of thousands of euros more than their diesel equivalents.  This is why the EU needs two things at once: strong enablers for electrification and hydrogen; and predictability on what the EU actually recognizes as clean. Operators using renewable fuels, from biomethane to advanced biofuels and HVO, delivering up to 90 percent CO2 reduction, are cutting emissions today. Yet current CO2 frameworks, for both light-duty vehicles and heavy-duty trucks, fail to recognize fleets running on these fuels as part of the EU’s decarbonization solution for road transport, even when they deliver immediate, measurable climate benefits. This lack of clarity limits investment and slows additional emission reductions that could happen today. > Policies that punish before enabling will not accelerate the transition; a > successful shift must empower operators, not constrain them. The revision of both CO2 standards, for cars and vans, and for heavy-duty vehicles, will therefore be pivotal. They must support electrification and hydrogen where they fit the mission, while also recognizing the contribution of renewable and low-carbon fuels across the fleet. Regulations that exclude proven clean options will not accelerate the transition. They will restrict it.  With this in mind, the question is: why would the EU consider imposing purchasing mandates on operators or excessively high emission-reduction targets on member states that would, in practice, force quotas on buyers? Such measures would punish before enabling, removing choice from those who know their operations best. A successful transition must empower operators, not constrain them.  The EU’s transport sector is committed and already delivering. With the right enablers, a technology-neutral framework, and clarity on what counts as clean, the EU can turn today’s early successes into a scalable, fair and competitive decarbonization pathway.  We now look with great interest to the upcoming Automotive Package, hoping to see pragmatic solutions to these pressing questions, solutions that EU transport operators, as the buyers and daily users of all these technologies, are keenly expecting. -------------------------------------------------------------------------------- Disclaimer POLITICAL ADVERTISEMENT * The sponsor is IRU – International Road Transport Union  * The ultimate controlling entity is IRU – International Road Transport Union  More information here.

Europe’s chemical industry has reached a breaking point. The warning lights are no longer blinking — they are blazing. Unless Europe changes course immediately, we risk watching an entire industrial backbone, with the countless jobs it supports, slowly hollow out before our eyes. Consider the energy situation: this year European gas prices have stood at 2.9 times higher than in the United States. What began as a temporary shock is now a structural disadvantage. High energy costs are becoming Europe’s new normal, with no sign of relief. This is not sustainable for an energy-intensive sector that competes globally every day. Without effective infrastructure and targeted energy-cost relief — including direct support, tax credits and compensation for indirect costs from the EU Emissions Trading System (ETS) — we are effectively asking European companies and their workers to compete with their hands tied behind their backs. > Unless Europe changes course immediately, we risk watching an entire > industrial backbone, with the countless jobs it supports, slowly hollow out > before our eyes. The impact is already visible. This year, EU27 chemical production fell by a further 2.5 percent, and the sector is now operating 9.5 percent below pre-crisis capacity. These are not just numbers, they are factories scaling down, investments postponed and skilled workers leaving sites. This is what industrial decline looks like in real time. We are losing track of the number of closures and job losses across Europe, and this is accelerating at an alarming pace. And the world is not standing still. In the first eight months of 2025, EU27 chemicals exports dropped by €3.5 billion, while imports rose by €3.2 billion. The volume trends mirror this: exports are down, imports are up. Our trade surplus shrank to €25 billion, losing €6.6 billion in just one year. Meanwhile, global distortions are intensifying. Imports, especially from China, continue to increase, and new tariff policies from the United States are likely to divert even more products toward Europe, while making EU exports less competitive. Yet again, in 2025, most EU trade defense cases involved chemical products. In this challenging environment, EU trade policy needs to step up: we need fast, decisive action against unfair practices to protect European production against international trade distortions. And we need more free trade agreements to access growth market and secure input materials. “Open but not naïve” must become more than a slogan. It must shape policy. > Our producers comply with the strictest safety and environmental standards in > the world. Yet resource-constrained authorities cannot ensure that imported > products meet those same standards. Europe is also struggling to enforce its own rules at the borders and online. Our producers comply with the strictest safety and environmental standards in the world. Yet resource-constrained authorities cannot ensure that imported products meet those same standards. This weak enforcement undermines competitiveness and safety, while allowing products that would fail EU scrutiny to enter the single market unchecked. If Europe wants global leadership on climate, biodiversity and international chemicals management, credibility starts at home. Regulatory uncertainty adds to the pressure. The Chemical Industry Action Plan recognizes what industry has long stressed: clarity, coherence and predictability are essential for investment. Clear, harmonized rules are not a luxury — they are prerequisites for maintaining any industrial presence in Europe. This is where REACH must be seen for what it is: the world’s most comprehensive piece of legislation governing chemicals. Yet the real issues lie in implementation. We therefore call on policymakers to focus on smarter, more efficient implementation without reopening the legal text. Industry is facing too many headwinds already. Simplification can be achieved without weakening standards, but this requires a clear political choice. We call on European policymakers to restore the investment and profitability of our industry for Europe. Only then will the transition to climate neutrality, circularity, and safe and sustainable chemicals be possible, while keeping our industrial base in Europe. > Our industry is an enabler of the transition to a climate-neutral and circular > future, but we need support for technologies that will define that future. In this context, the ETS must urgently evolve. With enabling conditions still missing, like a market for low-carbon products, energy and carbon infrastructures, access to cost-competitive low-carbon energy sources, ETS costs risk incentivizing closures rather than investment in decarbonization. This may reduce emissions inside the EU, but it does not decarbonize European consumption because production shifts abroad. This is what is known as carbon leakage, and this is not how EU climate policy intends to reach climate neutrality. The system needs urgent repair to avoid serious consequences for Europe’s industrial fabric and strategic autonomy, with no climate benefit. These shortcomings must be addressed well before 2030, including a way to neutralize ETS costs while industry works toward decarbonization. Our industry is an enabler of the transition to a climate-neutral and circular future, but we need support for technologies that will define that future. Europe must ensure that chemical recycling, carbon capture and utilization, and bio-based feedstocks are not only invented here, but also fully scaled here. Complex permitting, fragmented rules and insufficient funding are slowing us down while other regions race ahead. Decarbonization cannot be built on imported technology — it must be built on a strong EU industrial presence. Critically, we must stimulate markets for sustainable products that come with an unavoidable ‘green premium’. If Europe wants low-carbon and circular materials, then fiscal, financial and regulatory policy recipes must support their uptake — with minimum recycled or bio-based content, new value chain mobilizing schemes and the right dose of ‘European preference’. If we create these markets but fail to ensure that European producers capture a fair share, we will simply create new opportunities for imports rather than European jobs. > If Europe wants a strong, innovative resilient chemical industry in 2030 and > beyond, the decisions must be made today. The window is closing fast. The Critical Chemicals Alliance offers a path forward. Its primary goal will be to tackle key issues facing the chemical sector, such as risks of closures and trade challenges, and to support modernization and investments in critical productions. It will ultimately enable the chemical industry to remain resilient in the face of geopolitical threats, reinforcing Europe’s strategic autonomy. But let us be honest: time is no longer on our side. Europe’s chemical industry is the foundation of countless supply chains — from clean energy to semiconductors, from health to mobility. If we allow this foundation to erode, every other strategic ambition becomes more fragile. If you weren’t already alarmed — you should be. This is a wake-up call. Not for tomorrow, for now. Energy support, enforceable rules, smart regulation, strategic trade policies and demand-driven sustainability are not optional. They are the conditions for survival. If Europe wants a strong, innovative resilient chemical industry in 2030 and beyond, the decisions must be made today. The window is closing fast. -------------------------------------------------------------------------------- Disclaimer POLITICAL ADVERTISEMENT * The sponsor is CEFIC- The European Chemical Industry Council  * The ultimate controlling entity is CEFIC- The European Chemical Industry Council  More information here.

The European Commission has proposed giving itself legally-enshrined power to plan the expansion of European electricity grids, as it scrambles to update an ageing network to meet the soaring demands of the clean energy transition. The proposed changes to the Trans-European Networks for Energy, or TEN-E, regulation, would give the Commission power to conduct “central scenario” planning to assess what upgrades are needed to the grid — a marked change from the current decentralized system of grid planning. The Commission would conduct this planning every four years. Where no projects are planned, the Commission would have power to intervene. The proposal was part of the European Grids Package, a sweeping set of changes to EU energy laws released Wednesday. Electrification of everything from transport and heating to industrial processes is essential as Europe moves away from planet-warming fossil fuels. But that puts huge strain on networks, and the Commission estimates electricity demand will double by 2040. An efficient, pan-European electricity grid is essential to meeting this demand. “The European Grids Package is more than just a policy,” said Teresa Ribera, the EU’s decarbonization chief, in a statement Tuesday. “It’s our commitment for an inclusive future, where every part of Europe reaps the benefits of the energy revolution: cheaper clean energy, reduced dependence on imported fossil fuels, secure supply and protection against price shocks.” Along with centralized planning, the Grids Package proposes speeding up permitting of grids and other energy projects to get the infrastructure faster, including relaxing environmental planning rules for grids. Currently planning and building new grid infrastructure takes around 10 years. It would do this by amending four laws: the TEN-E regulation, the Renewable Energy Directive, the Energy Markets Directive, and the Gas Market Directive. The package also proposes “cost-sharing” funding models to ensure those countries that benefit from projects contribute to its financing, and speeding up a number of key energy interconnection projects across Europe.

High energy prices, risks on CBAM enforcement and promotion of lead markets, as well as increasing carbon costs are hampering domestic and export competitiveness with non-EU producers. The cement industry is fundamental to Europe’s construction value chain, which represents about 9 percent of the EU’s GDP. Its hard-to-abate production processes are also currently responsible for 4 percent of EU emissions, and it is investing heavily in measures aimed at achieving full climate neutrality by 2050, in line with the European Green Deal. Marcel Cobuz, CEO, TITAN Group  “We should take a longer view and ensure that the cement industry in EU stays competitive domestically and its export market shares are maintained.” However, the industry’s efforts to comply with EU environmental regulations, along with other factors, make it less competitive than more carbon-intensive producers from outside Europe. Industry body Cement Europe recently stated that, “without a competitive business model, the very viability of the cement industry and its prospects for industrial decarbonization are at risk.” Marcel Cobuz, member of the Board of the Global Cement and Concrete Association and CEO of TITAN Group, one of Europe’s leading producers, spoke with POLITICO Studio about the vital need for a clear policy partnership with Brussels to establish a predictable regulatory and financing framework to match the industry’s decarbonization ambitions and investment efforts to stay competitive in the long-term. POLITICO Studio: Why is the cement industry important to the EU economy?  Marcel Cobuz: Just look around and you will see how important it is. Cement helped to build the homes that we live in and the hospitals that care for us. It’s critical for our transport and energy infrastructure, for defense and increasingly for the physical assets supporting the digital economy. There are more than 200 cement plants across Europe, supporting nearby communities with high-quality jobs. The cement industry is also key to the wider construction industry, which employs 14.5 million people across the EU. At the same time, cement manufacturers from nine countries compete in the international export markets. PS: What differentiates Titan within the industry?  MC: We have very strong European roots, with a presence in 10 European countries. Sustainability is very much part of our DNA, so decarbonizing profitably is a key objective for us. We’ve reduced our CO2 footprint by nearly 25 percent since 1990, and we recently announced that we are targeting a similar reduction by 2030 compared to 2020. We are picking up pace in reducing emissions both by using conventional methods, like the use of alternative sources of low-carbon energy and raw materials, and advanced technologies. TITAN/photo© Nikos Daniilidis We have a large plant in Europe where we are exploring building one of the largest carbon capture projects on the continent, with support from the Innovation Fund, capturing close to two million tons of CO2 and producing close to three million tons of zero-carbon cement for the benefit of all European markets. On top of that, we have a corporate venture capital fund, which partners with startups from Europe to produce the materials of tomorrow with  very low or zero carbon. That will help not only TITAN but the whole industry to accelerate its way towards the use of new high-performance materials with a smaller carbon footprint. PS: What are the main challenges for the EU cement industry today?  MC: Several factors are making us less competitive than companies from outside the EU. Firstly, Europe is an expensive place when it comes to energy prices. Since 2021, prices have risen by close to 65 percent, and this has a huge impact on cement producers, 60 percent of whose costs are energy-related. And this level of costs is two to three times higher than those of our neighbors. We also face regulatory complexity compared to our outside competitors, and the cost of compliance is high. The EU Emissions Trading System (ETS) cost for the cement sector is estimated at €97 billion to €162 billion between 2023 and 2034. Then there is the need for low-carbon products to be promoted ― uptake is still at a very low level, which leads to an investment risk around new decarbonization technologies. > We should take a longer view and ensure that the cement industry in the EU > stays competitive domestically and its export market shares are maintained.” All in all, the playing field is far from level. Imports of cement into the EU have increased by 500 percent since 2016. Exports have halved ― a loss of value of one billion euros. The industry is reducing its cost to manufacture and to replace fossil fuels, using the waste of other industries, digitalizing its operations, and premiumizing its offers. But this is not always enough. Friendly policies and the predictability of a regulatory framework should accompany the effort. PS: In January 2026, the Carbon Border Adjustment Mechanism will be fully implemented, aimed at ensuring that importers pay the same carbon price as domestic producers. Will this not help to level the playing field? MC: This move is crucial, and it can help in dealing with the increasing carbon cost. However, I believe we already see a couple of challenges regarding the CBAM. One is around self-declaration: importers declare the carbon footprint of their materials, so how do we avoid errors or misrepresentations? In time there should be audits of the importers’ industrial installations and co-operation with the authorities at source to ensure the data flow is accurate and constant. It really needs to be watertight, and the authorities need to be fully mobilized to make sure the real cost of carbon is charged to the importers. Also, and very importantly, we need to ensure that CBAM does not apply to exports from the EU to third countries, as carbon costs are increasingly a major factor making us uncompetitive outside the EU, in markets where we were present for more than 20 years. > CBAM really needs to be watertight, and the authorities need to be fully > mobilized to make sure the real cost of carbon is charged to the importers.” PS: In what ways can the EU support the European cement industry and help it to be more competitive? MC: By simplifying legislation and making it more predictable so we can plan our investments for the long term. More specifically, I’m talking about the revamping of the ETS, which in its current form implies a phase-down of CO2 rights over the next decade. First, we should take a longer view and ensure that the cement industry stays competitive and its export market shares are maintained, so a policy of more for longer should accompany the new ETS. > In export markets, the policy needs to ensure a level playing field for > European suppliers competing in international destination markets, through a > system of free allowances or CBAM certificates, which will enable exports to > continue.” We should look at it as a way of funding decarbonization. We could front-load part of ETS revenues in a fund that would support the development of technologies such as low-carbon materials development and CCS. The roll-out of Infrastructure for carbon capture projects such as transport or storage should also be accelerated, and the uptake of low-carbon products should be incentivized. More specifically on export markets, the policy needs to ensure a level playing field for European suppliers competing in international destination markets, through a system of free allowances or CBAM certificates, which will enable exports to continue. PS: Are you optimistic about the future of your industry in Europe?  MC: I think with the current system of phasing out CO2 rights, and if the CBAM is not watertight, and if energy prices remain several times higher than in neighboring countries, and if investment costs, particularly for innovating new technologies, are not going to be financed through ETS revenues, then there is an existential risk for at least part of the industry. Having said that, I’m optimistic that, working together with the European Commission we can identify the right policy making solutions to ensure our viability as a strategic industry for Europe. And if we are successful, it will benefit everyone in Europe, not least by guaranteeing more high-quality jobs and affordable and more energy-efficient materials for housing ― and a more sustainable and durable infrastructure in the decades ahead. -------------------------------------------------------------------------------- Disclaimer POLITICAL ADVERTISEMENT * The sponsor is Titan Group * The advertisement is linked to policy advocacy around industrial competitiveness, carbon pricing, and decarbonization in the EU cement and construction sectors, including the EU’s CBAM legislation, the Green Deal, and the proposed revision of the ETS. More information here.

BRUSSELS — Europe’s most energy-intensive industries are worried the European Union’s carbon border tax will go too soft on heavily polluting goods imported from China, Brazil and the United States — undermining the whole purpose of the measure. From the start of next year, Brussels will charge a fee on goods like cement, iron, steel, aluminum and fertilizer imported from countries with weaker emissions standards than the EU’s. The point of the law, known as the Carbon Border Adjustment Mechanism, is to make sure dirtier imports don’t have an unfair advantage over EU-made products, which are charged around €80 for every ton of carbon dioxide they emit. One of the main conundrums for the EU is how to calculate the carbon footprint of imports when the producers don’t give precise emissions data. According to draft EU laws obtained by POLITICO, the European Commission is considering using default formulas that EU companies say are far too generous. Two documents in particular have raised eyebrows. One contains draft benchmarks to assess the carbon footprint of imported CBAM goods, while the second — an Excel sheet seen by POLITICO — shows default CO2 emissions values for the production of these products in foreign countries. These documents are still subject to change. National experts from EU countries discussed the controversial texts last Wednesday during a closed-door meeting, and asked the Commission to rework them before they can be adopted. That’s expected to happen over the next few weeks, according to two people with knowledge of the talks. Multiple industry representatives told POLITICO that the proposed estimated carbon footprint values are too low for a number of countries, which risks undermining the efficiency of the CBAM. For example, some steel products from China, Brazil and the United States have much lower assumed emissions than equivalent products made in the EU, according to the tables. Ola Hansén, public affairs director of the green steel manufacturer Stegra, said he had been “surprised” by the draft default values that have been circulating, because they suggest that CO2 emissions for some steel production routes in the EU were higher than in China, which seemed “odd.” “Our recommendation would be [to] adjust the values, but go ahead with the [CBAM] framework and then improve it over time,” he said. Antoine Hoxha, director general of industry association Fertilizers Europe, also said he found the proposed default values “quite low” for certain elements, like urea, used to manufacture fertilizers. “The result is not exactly what we would have thought,” he said, adding there is “room for improvement.” But he also noted that the Commission is trying “to do a good job but they are extremely overwhelmed … It’s a lot of work in a very short period of time.” Multiple industry representatives told POLITICO that the proposed estimated carbon footprint values are too low for a number of countries, which risks undermining the efficiency of the CBAM. | Photo by VCG via Getty Images While a weak CBAM would be bad for many emissions-intensive, trade-exposed industries in the EU, it’s likely to please sectors relying on cheap imports of CBAM goods — such as European farmers that import fertilizer — as well as EU trade partners that have complained the measure is a barrier to global free trade. The European Commission declined to comment. DEFAULT VERSUS REAL EMISSIONS Getting this data right is crucial to ensure the mechanism works and encourages companies to lower their emissions to pay a lower CBAM fee. “Inconsistencies in the figures of default values and benchmarks would dilute the incentive for cleaner production processes and allow high-emission imports to enter the EU market with insufficient carbon costs,” said one CBAM industry representative, granted anonymity to discuss the sensitive talks. “This could result in a CBAM that is not only significantly less effective but most likely counterproductive.” The default values for CO2 emissions are like a stick. When the legislation was designed, they were expected to be set quite high to “punish importers that are not providing real emission data,” and encourage companies to report their actual emissions to pay a lower CBAM fee, said Leon de Graaf, acting president of the Business for CBAM Coalition. But if these default values are too low then importers no longer have any incentive to provide their real emissions data. They risk making the CBAM less effective because it allows imported goods to appear cleaner than they really are, he said. The Commission is under pressure to adopt these EU acts quickly as they’re needed to set the last technical details for the implementation of the CBAM, which applies from Jan. 1. However, de Graaf warned against rushing that process. On the one hand, importers “needed clarity yesterday” because they are currently agreeing import deals for next year and at the moment “cannot calculate what their CBAM cost will be,” he said. But European importers are worried too, because once adopted the default emission values will apply for the next two years, the draft documents suggest. The CBAM regulation states that the default values “shall be revised periodically.” “It means that if they are wrong now … they will hurt certain EU producers for at least two years,” de Graaf said.

LONDON — The British government said it opposes attempts to cool the planet by spraying millions of tons of dust into the atmosphere — but did not close the door to a debate on regulating the technology.  The comments in parliament Thursday came after a POLITICO investigation revealed an Israeli-U.S. company Stardust Solutions aimed to be capable of deploying solar radiation modification, as the technology is called, inside this decade. “We’re not in favor of solar radiation modification given the uncertainty around the potential risks it poses to the climate and environment,” Leader of the House of Commons Alan Campbell said on behalf of the government. Stardust has recently raised $60 million in finance from venture capital investors, mostly based in Silicon Valley and Britain. It is the largest ever investment in the field.  The emergence of a well-funded, private sector actor moving aggressively toward planet cooling capability has led to calls for the global community to regulate the field.  Citing POLITICO’s reporting, Labour MP Sarah Coombes asked the government: “Given the potential risks of this technology, could we have a debate on how Britain will work with other countries to regulate experiments with the earth’s atmosphere, and ensure we cooperate with other countries on solutions that actually tackle the root cause of climate change?” Campbell signaled the government was open to further discussion of the issue by inviting Coombes to raise the point the next time Technology Secretary Liz Kendall took questions in parliament.  Stardust’s CEO Yanai Yedvab told POLITICO the company was also in favor of regulation to ensure the technology was deployed safely and after proper public debate. Some scientists and experts, though, have raised concerns about the level of secrecy under which the company has conducted its research.  Stardust is proposing to use high-flying aircraft to dump millions of tons of a proprietary particle into the stratosphere, around 12 miles above the Earth’s surface. The technology mimics the short term global cooling that occurs when volcanoes blow dust and gas high into the sky, blocking a small amount of the sun’s heat.  Most scientists agree this could temporarily lower the Earth’s surface temperature, helping to avert some impacts of global warming. The side effects, however, are not well researched.  The U.K. has one of the world’s best funded research programs looking at the impacts of its potential use, via its Advanced Research and Invention Agency.  “We do work closely with the international research community to evaluate the latest scientific evidence,” said Campbell.   POLITICO has meanwhile been blocked from receiving internal government advice on solar radiation modification. The Department for Energy Security and Net Zero has refused to release the documents, arguing this would have a “chilling effect” on the candor of advice by officials to ministers.  In a response to a records request, DESNZ Director of International Climate Matt Toombs said: “Our priority is to reduce greenhouse gas emissions from human activities and to adapt to the unavoidable impacts of climate change. Any research into cooling technologies in no way alleviates the urgent need for increased decarbonization efforts.” Stardust boss Yedvab said: “We are very happy to see policymakers engaging with this issue and making it clear that robust regulations are needed. “Stardust will deploy its technology only within an adequate regulatory framework established by governments. “Starting early next year we’ll disclose in peer-reviewed scientific publications all the details of our solution, including the evidence substantiating the safety of our particles, for the review of the scientific community.”

Disclaimer: POLITICAL ADVERTISEMENT * The sponsor is Polish Electricity Association (PKEE) * The advertisement is linked to policy advocacy on energy transition, electricity market design, and industrial competitiveness in the EU. More information here The European Union is entering a decisive decade for its energy transformation. With the international race for clean technologies accelerating, geopolitical tensions reshaping markets and competition from other major global economies intensifying, how the EU approaches the transition will determine its economic future. If managed strategically, the EU can drive competitiveness, growth and resilience. If mismanaged, Europe risks losing its industrial base, jobs and global influence.  > If managed strategically, the EU can drive competitiveness, growth and > resilience. If mismanaged, Europe risks losing its industrial base, jobs and > global influence. This message resonated strongly during PKEE Energy Day 2025, held in Brussels on October 14, which brought together more than 350 European policymakers, industry leaders and experts under the theme “Secure, competitive and clean: is Europe delivering on its energy promise?”. One conclusion was clear: the energy transition must serve the economy, not the other way around.  Laurent Louis Photography for PKEE The power sector: the backbone of Europe’s industrial future  The future of European competitiveness will be shaped by its power sector. Without a successful transformation of electricity generation and distribution, other sectors — from steel and chemicals to mobility and digital — will fail to decarbonize. This point was emphasized by Konrad Wojnarowski, Poland’s deputy minister of energy, who described electricity as “vital to development and competitiveness.”  “Transforming Poland’s energy sector is a major technological and financial challenge — but we are on the right track,” he said. “Success depends on maintaining the right pace of change and providing strong support for innovation.” Wojnarowski also underlined that only close cooperation between governments, industry and academia can create the conditions for a secure, competitive and sustainable energy future.  Flexibility: the strategic enabler  The shift to a renewables-based system requires more than capacity additions — it demands a fundamental redesign of how electricity is produced, managed and consumed. Dariusz Marzec, president of the Polish Electricity Association (PKEE) and CEO of PGE Polska Grupa Energetyczna, called flexibility “the Holy Grail of the power sector.”  Speaking at the event, Marzec also stated “It’s not about generating electricity continuously, regardless of demand. It’s about generating it when it’s needed and making the price attractive. Our mission, as part of the European economy, is to strengthen competitiveness and ensure energy security for all consumers – not just to pursue climate goals for their own sake. Without a responsible approach to the transition, many industries could relocate outside Europe.”  The message is clear: the clean energy shift must balance environmental ambition with economic reality. Europe cannot afford to treat decarbonization as an isolated goal — it must integrate it into a broader industrial strategy.  > The message is clear: the clean energy shift must balance environmental > ambition with economic reality. The next decade will define success  While Europe’s climate neutrality target for 2050 remains a cornerstone of EU policy, the next five to ten years will determine whether the continent remains globally competitive. Grzegorz Lot, CEO of TAURON Polska Energia and vice-president of PKEE, warned that technology is advancing too quickly for policymakers to rely solely on long-term milestones.  “Technology is evolving too fast to think of the transition only in terms of 2050. Our strategy is to act now — over the next year, five years, or decade,” Lot said. He pointed to the expected sharp decline in coal consumption over the next three years and called for immediate investment in proven technologies, particularly onshore wind.  Lot also raised concerns about structural barriers. “Today, around 30 percent of the price of electricity is made up of taxes. If we want affordable energy and a competitive economy, this must change,” he argued.  Consumers and regulation: the overlooked pillars  A successful energy transition cannot rely solely on investment and infrastructure. It also depends on regulatory stability and consumer participation. “Maintaining competitiveness requires not only investment in green technologies but also a stable regulatory environment and active consumer engagement,” Lot said.  He highlighted the potential of dynamic tariffs, which incentivize demand-side flexibility. “Customers who adjust their consumption to market conditions can pay below the regulated price level. If we want cheap energy, we must learn to follow nature — consuming and storing electricity when the sun shines or the wind blows.”  Strategic investments for resilience  The energy transition is more than a climate necessity. It is a strategic requirement for Europe’s security and economic autonomy. Marek Lelątko, vice-president of Enea, stressed that customer- and market-oriented investment is essential. “We are investing in renewables, modern gas-fired units and energy storage because they allow us to ensure supply stability, affordable prices and greater energy security,” he said.  Grzegorz Kinelski, CEO of Enea and vice-president of PKEE, added: “We must stay on the fast track we are already on. Investments in renewables, storage and CCGT [combined cycle gas turbine] units will not only enhance energy security but also support economic growth and help keep energy prices affordable for Polish consumers.”  The power sector must now be recognized as a strategic enabler of Europe’s industrial future — on par with semiconductors, critical raw materials and defense. As Dariusz Marzec puts it: “The energy transition is not a choice — it is a necessity. But its success will determine more than whether we meet climate targets. It will decide whether Europe remains competitive, prosperous and economically independent in a rapidly changing world.”  > The power sector must now be recognized as a strategic enabler of Europe’s > industrial future — on par with semiconductors, critical raw materials and > defense. Measurable progress, but more is needed  Progress is visible. The power sector accounts for around 30 percent of EU emissions but has already delivered 75 percent of all Emissions Trading System reductions. By 2025, 72 percent of Europe’s electricity will come from low-carbon sources, while fossil fuels will fall to a historic low of 28 percent. And in Poland, in June, renewable energy generation overtook coal for the first time in history.  Still, ambition alone is not enough. In his closing remarks, Marcin Laskowski, vice-president of PKEE and executive vice-president for regulatory affairs at PGE Polska Grupa Energetyczna, stressed the link between the power sector and Europe’s broader economic transformation. “The EU’s economic transformation will only succeed if the energy transition succeeds — safely, sustainably and with attractive investment conditions,” he said. “It is the power sector that must deliver solutions to decarbonize industries such as steel, chemicals and food production.”  A collective European project  The event in Brussels — with the participation of many high-level speakers, including Mechthild Wörsdörfer, deputy director general of DG ENER; Tsvetelina Penkova, member of the European Parliament and vice-chair of the Committee on Industry, Research and Energy; Thomas Pellerin-Carlin, member of the European Parliament; Catherine MacGregor; CEO of ENGIE and vice-president of Eurelectric; and Claude Turmes, former minister of energy of Luxembourg — highlighted a common understanding: the energy transition is not an isolated environmental policy, it is a strategic industrial project. Its success will depend on coordinated action across EU institutions, national governments and industry, as well as predictable regulation and financing.  Europe’s ability to remain competitive, resilient and prosperous will hinge on whether its power sector is treated not as a cost to be managed, but as a foundation to be strengthened. The next decade is a window of opportunity — and the choices made today will shape Europe’s economic landscape for decades to come. 

Listen on * Spotify * Apple Music * Amazon Music In Brüssel verhandeln die EU-Staats- und Regierungschefs über Bürokratieabbau, Wettbewerbsfähigkeit, China und das nächste Sanktionspaket gegen Russland.  Hans von der Burchard berichtet vor dem EU-Gipfel, wo Kanzler Friedrich Merz gemeinsam mit Emmanuel Macron eine härtere Linie gegenüber Peking vereinbaren will. Gleichzeitig ringen in Mainz die Ministerpräsidenten um das Verbrenner-Aus ab 2035. Tom Schmidtgen vom POLITICO PRO-Newsletter ‘Industrie & Handel am Morgen’ erklärt, warum Länder wie Niedersachsen und Bayern gemeinsam auf E-Fuels setzen – und was ein neuer Kompromiss für Europas Klimaziele bedeutet. Im 200-Sekunden-Interview nimmt Olaf Lies, Ministerpräsident von Niedersachsen, Stellung: zu seiner Allianz mit Markus Söder, zur Zukunft von VW und zur Technologieoffenheit. Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig. Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren. Mehr von Host und POLITICO Executive Editor Gordon Repinski: Instagram: @gordon.repinski | X: @GordonRepinski.