Tag - Heat pumps
LONDON — Since Labour swept into office last year, Energy Secretary Ed Miliband
has traveled the country enthusing over the government’s dream of a humming,
futuristic net-zero economy.
The good news, according to polling released Wednesday, is that his vision still
has the backing of the public.
The bad news is that support is slipping — and voters aren’t convinced Miliband
is the guy to deliver it.
For Miliband’s political opponents, this validates their wider attacks on him as
an out-of-touch climate warrior, flogging a net-zero dream voters have rejected.
At Reform’s party conference Friday, party chair David Bull referenced “mad Ed
swivel-eyed Milliband.” Not to be outdone, the Conservatives have vowed to
squeeze every molecule of oil and gas from beneath the North Sea, deadly
heatwaves be damned.
But it also shines a light on a confusing feature of British politics: a
misalignment between the stories politicians want to tell about efforts to stop
climate change, and stuff the public actually care about.
At Reform’s party conference Friday, the party chair David Bull referenced “mad
Ed swivel-eyed Milliband.” | Leon Neal/Getty Images
The polling, conducted by progressive think tank More in Common and the Climate
Outreach NGO, found the number of people who think reaching net-zero emissions
will be good for the U.K. vastly outnumber those who think it will have a
negative effect — 48 percent versus 16 percent.
More people feel that the shift to clean energy has been fair than unfair. In
Scotland, more are proud of the offshore wind industry (63 percent) than the oil
and gas industry (54 percent).
“Those who seek to divide communities with climate disinformation will not win
because they do not represent the interests or values of the British people,”
Miliband said in a statement shared with the media.
Despite this, voters are hesitant about the personal impact of a country rushing
to go green. Seventy-four percent of people think the U.K.’s commitment to reach
net-zero emissions by 2050 will eventually cost them money personally. The gap
between those who think it will be beneficial for the U.K. versus harmful has
shrunk by 20 points in only a year.
This is frequently interpreted as a sign that a personal desire to help fix the
climate is butting up against the hard realities of net zero, which requires
changes like fitting millions of heat pumps and EV chargers and overhauling the
energy grid.
Further polling released by The Times Tuesday backs up the sense voters are
growing more divided on climate change. It shows support for net zero collapsing
among Reform and Conservative voters, while overall the issue has slipped from
voters’ list of top concerns.
But analysts from Climate Outreach said part of the problem isn’t the message
but the messengers.
“Politicians are not well trusted to speak about climate,” the NGO said in an
analysis shared with POLITICO. In fact, elected leaders were the least trusted
carriers of the climate message — beneath also-lowly ranked protesters and
energy company executives.
TRUST ISSUES
Voter wariness about pro-climate messages isn’t a feature of green politics in
particular, said Emma James, a researcher at Climate Outreach, but a symptom of
broader public cynicism about government.
“They don’t trust that politicians are there for people like them. Some audience
segments feel that the system is rigged against them,” she said.
It’s not net zero the public aren’t buying, it’s the ability of this government
— or any government — to deliver it. Voters believe the NHS remains broken.
National projects like high-speed rail lines and nuclear power stations keep
being delayed at higher and higher costs.
This creates a problem for Miliband. At a time of deep voter skepticism, his
Department for Energy Security and Net Zero (DESNZ) is pursuing precisely that
kind of major national project — involving upfront costs, disruption and complex
trade-offs, with the promise of huge savings to private and public purses down
the line. It will, Miliband argues, generate new jobs.
Under Rishi Sunak, the Conservatives went in search of their own set of climate
salespeople. | Carl Court/Getty Images
“We will win this fight by showing the visible benefits of the clean energy
transition,” insisted one Labour official, granted anonymity to discuss the
government’s internal deliberations.
The story of failure, however, is pervasive and self-reinforcing, said Richard
Johnson, a political scientist at Queen Mary University of London.
“Policy delivery has to be tied in with a compelling political narrative and the
political leadership that can tell that story and interpret what people are
seeing in front of their eyes,” he said. “I wonder now if there is such a high
level of cynicism … that even if you did tell a compelling narrative around
policy delivery, that people would not believe it.”
Johnson lays the blame with Miliband’s boss, U.K. Prime Minister Keir Starmer,
“who has been in a way almost catastrophically unable to put together a
compelling narrative for his government. Or, quite frankly, even his own
leadership.” Downing Street says it is focused on driving economic growth across
the country.
This is not isolated to Labour. Under Rishi Sunak, the Conservatives went in
search of their own set of climate salespeople — before deciding that there was
more political capital in ditching pro-climate policies.
Climate Outreach said Miliband could turn this problem into an “opportunity,” as
long as he laid off the grand projet and focused on the visible, local benefits
of climate policies.
And there is some evidence that Labour gets it, seen in the government’s move to
chip in for the energy bills of people living in sight of unpopular new
electricity pylons.
The more conservative or skeptical parts of the British electorate still had
deep enthusiasm for messages about protecting the environment, the pollsters
said. But most important, the NGO argued, was bringing other voices into the
frame.
While politicians are viewed very dimly indeed, experts and scientists are seen
as credible messengers, the polling shows. So too are those seen to understand
what life is like for normal British people. Farmers were among the messengers
who cut through most with traditionalists and those described by the pollsters
as “patriots.”
Jeremy Clarkson, DESNZ needs you.
Vast amounts of valuable thermal energy are slipping through the fingers of
Europe’s critical industries and institutions every day, as the heat escapes
from their operations or remains untapped from natural ambient sources like
nearby land, air or water. Today, some businesses and communities are harnessing
this heat using innovative heat pump technologies to dramatically cut costs and
CO2 emissions.
As Europe races to revitalize key industries and accelerate growth, deploying
heat pumps at scale is a key strategy for success. Consider this: in 2024 alone,
Johnson Controls’ heat pumps cut energy costs for customers by 53 percent and
emissions by 60 percent.
> in 2024 alone, Johnson Controls’ heat pumps cut energy costs for customers by
> 53 percent and emissions by 60 percent.
Sound too good to be true? Let’s look at organizations realizing this powerful
win-win every day. A hospital in Germany put a heat pump to work to tap heat
energy 200 meters below the facility and realized a 30 percent cut in energy
costs while producing enough heat to cover 80 percent of the hospital’s demand.
The Aalborg hospital in Denmark is close to zeroing out carbon emissions,
achieving an 80-90 percent cut while driving energy costs down by 80 percent.
And in the UK, Hounslow Council transitioned from gas boilers to air source heat
pumps, cutting its energy costs and CO2 emissions by 50 percent across more than
60 schools and public buildings.
Natural and waste heat energy resources can be put to work for industry as well.
Take, for example, a leading food company in Spain. Installing heat pumps at two
of their manufacturing facilities enabled them to save €1.5 million per year and
reduce CO2 emissions by nearly 2,000 tons, the equivalent annual emissions of
around 400 homes. Nestle’s Biessenhofen plant in Germany also significantly cut
energy costs for hot water production while lowering CO2 emissions by 10
percent.
The heat pumps powering these successes? Made by Johnson Controls here in
Europe. So, the opportunity at hand is magnified as Europe can lead in
cutting-edge energy technologies while putting the machines to work to boost
core, centuries-old and critical legacy industries.
To put the potential of industry heating needs and excess industrial heat in
context, heat accounts for more than 60 percent of energy use in European
industries, according to the European Heat Pump Association. Meanwhile, a
leading European industrial company estimates that wasted heat in the European
Union would just about meet the bloc’s entire energy demands for central heating
and hot water.
> To put the potential of industry heating needs and excess industrial heat in
> context, heat accounts for more than 60 percent of energy use in European
> industries,
The fact is that untapped heat energy is everywhere. It’s critical that we put
it to work now.
A catalyst for a competitive, energy-secure and sustainable Europe
Today EU companies pay 2-3 times more for their electricity than competitors in
the United States and China — a disparity that puts a constraint on the
competitiveness of European industries, according to analysis by the Draghi
Report on the future of Europe’s competitiveness. The report calls for immediate
action to lower energy costs and emissions as a combined competition and climate
strategy.
With the visionary Clean Industrial Deal, European leaders are moving to do just
that. Heat pumps can be front and center in this agenda. Heat pumps quickly
bolster the bottom line: they are state-of-the-art, so they ensure the
reliability and uptime of critical operations; and they are essential in driving
every euro to growth and innovation instead of going out the door in excess
energy bills. As leaders turn the Clean Industrial Deal into legislation this
year, they can ensure essential industries and organizations prosper by
including incentives for heat pumps, while also reforming electricity pricing so
the full magnitude of savings can be realized. It is estimated that in Germany
in 2024, for example, extraneous taxes on the electric bill represented 30
percent of cost — artificially increasing the cost of electricity and narrowing
instead of increasing choices to meet critical energy needs with clean
electricity.
Expansive troves of natural and wasted energy represent a huge opportunity for
growth and competitiveness. Heat pump technologies are the enablers. They tap
into this ‘free energy’ and transform it into the fuel that drives industrial
processes, heats spaces, and delivers the higher temperature water and energy
that’s essential for processing, pasteurizing, bulking and sterilizing.
Natural and waste heat: a natural resource for companies
Seen at scale, our natural and escaping industrial heat are a new natural energy
resource to be put to work, and a powerful economic catalyst to strengthen
Europe’s competitiveness.
Visualization of the Hamburg Dradenau site where four
15-MW heat pumps will tap into treated wastewater to supply green heat to around
39,000 homes from 2026.
Natural and waste energy is all around us. Recovering heat from a city’s
wastewater treatment plant represents a powerful example. In Utrecht, the
Netherlands, for example, a heat pump extracts residual heat from treated
wastewater to provide heat to around 20,000 homes. And from 2026 in Hamburg,
Germany, four large-scale heat pumps will extract heat from treated wastewater
and feed it into the central district heating network, heating around 39,000
homes.
Pharmaceutical companies, chemical facilities, and food and beverage enterprises
are among the industries that can tap into energy they generate as a byproduct
of the processes that produce the medicines and products we rely on every day.
In our modern data and information technology economy, data centers are among
the biggest new sources of excess heat. The International Energy Agency notes
that reused heat from data centers could meet around 300 TWh of heating demand
by 2030, equivalent to 10 percent of European space heating needs. As artificial
intelligence leads to increasingly more computing power in data centers, those
numbers will grow significantly. The fact that up to half of the energy consumed
by a data center is needed for cooling demonstrates how much heat is available.
With heat pumps, we can capture that heat and put it to productive use.
A trifecta for competitiveness, energy security and carbon neutrality
Heat pump systems are key for Europe’s competitiveness, its energy security and
tackling climate change. Tapping into the vast energy resources that are
available everywhere and right now, heat pumps have the potential to become one
of the continent’s next biggest industrial success stories. Let’s seize the
moment for a future of economic strength and security, environmental health, and
having pride in them being made right here.
> Heat pump systems are key for Europe’s competitiveness, its energy security
> and tackling climate change.
LONDON — The vast majority of new U.K. homes will have rooftop solar panels
installed by default, the government has announced.
The new policy will mean residents of new-build homes will save up to £530 per
year compared to the energy price cap, the government estimates.
The announcement comes in advance of the Future Homes Standard, to be published
in autumn, which will set the regulations and guidelines for newly built homes.
The government confirmed today that solar panels will be included in that plan,
leading to installations across the vast majority of new homes.
Requirements stop short of a mandate, with regulations instead amended to
explicitly promote solar for the first time. Exceptions will include practical
issues like the proximity of trees or overhead shade — but these are expected to
be rare cases.
Energy Secretary Ed Miliband said: “Solar panels can save people hundreds of
pounds off their energy bills, so it is just common sense for new homes to have
them fitted as standard. So many people just don’t understand why this doesn’t
already happen. With our plans, it will.”
Miliband told the BBC this morning he expected the rollout to be “almost
universal” and that the move was “just common sense.”
The government is now working with the solar industry to establish technical
details ahead of publication.
The Future Homes Standard will also see homes built with low carbon heating such
as heat pumps and heat networks.
The government has already ditched requirements for heat pumps to be installed
at least one meter away from a property boundary, and doubled the number of heat
pumps permitted per detached house from one to two.
Last year, the EU introduced a similar law mandating that all new buildings be
solar-ready.
Europe is at a pivotal crossroads. Geopolitical instability and economic anxiety
dominate the headlines and risk leading politicians into neglecting, or worse,
actively dismantling, the continent’s climate leadership. This must not happen.
Rather than turning their backs in a time of crisis, EU leaders should seek to
accelerate climate action as a path to both security and prosperity.
In the face of rampant disinformation and constant undermining by vested
interests in the fossil fuel industry, some now talk of diluting Europe’s
climate goals to appease lobby groups and climate-skeptic politicians. This
would be a big mistake. Climate ambition cannot be diminished or dismissed for
short-term political goals or vested interests. It must be long-sighted,
future-proofed and transformational. Europe must now, more than ever, double
down and show that climate action delivers for people, particularly those who
have lost faith that climate action can benefit their everyday lives.
A commitment to reducing net emissions by at least 90 percent by 2040, phasing
out fossil fuels and a strong Clean Industrial Deal that puts cities at the
center of its delivery is as important to the health and well-being of Europeans
as a strong
defense policy, trade relationships or social safety net. If done well, with
workers and families’ needs at the center, it will be essential to building a
resilient, competitive and secure Europe.
If Europe wants to win hearts, minds and markets, it must prove how the climate
transition delivers not just long-term targets, but also tangible benefits — and
this all begins in cities with good green jobs, security, healthier places to
live, work and play and lower bills.
Europe cannot achieve industrial competitiveness without decarbonization, and it
cannot meet its climate commitments without transforming industry. Cities are
hubs of economic activity, innovation and workforce development that will
determine whether Europe succeeds in achieving both goals.
City leaders understand how EU policies land on the ground. Empowered cities can
turn high-level climate ambition into real economic transformation.
Today, Europe’s 18 C40 cities, representing approximately 48 million residents
and contributing €3.51 trillion to the global economy, already support 2.3
million green jobs — 8 percent of their total employment — including over 1.3
million in sectors like clean energy, waste and transport. That number will only
grow as key sectors decarbonize. With the right support, cities can accelerate
the creation of good, green jobs and better access to them: jobs that are safe,
secure and future-proof.
> Europe’s 18 C40 cities, representing approximately 48 million residents and
> contributing €3.51 trillion to the global economy, already support 2.3 million
> good, green jobs
The examples are everywhere: London’s Green Skills Academy is reskilling
thousands for low-carbon careers. Rotterdam, where construction materials and
buildings account for 25 percent of the city’s €1.3 billion annual spend, is
using procurement to scale the circular economy, and through the Circular
Materials Purchasing Strategy, strives for a 50 percent reduction in primary
resource consumption by 2030. Considering that C40’s European cities have
reduced per-capita emissions by 23 percent between 2015 and 2024, these are not
just local initiatives — they are scalable models of the industrial
transformation Europe needs.
Cities also control powerful economic levers. Strategic procurement can shape
markets, drive clean-tech adoption and support local small and medium-sized
enterprises (SMEs). For example, Oslo mandates zero-emission construction in
public projects, and five years on, 77 percent of municipal building sites are
emission-free, a great example of procurement driving industry-wide changes.
With direct access to funding and streamlined EU instruments, cities can go
further and faster, creating demand for clean innovation and building thriving
local economies from the ground up.
Yet today, only 13 percent of the global workforce is ready for these future
careers, and Europe faces urgent skills shortages in high-emitting sectors.
Cities are ideally placed to bridge that gap. Madrid and London, for instance,
are already training workers in retrofitting, heat pumps and renewables. Paris
streamlines business registration to support start-ups, while Lisbon provides
free ESG training to SMEs, ensuring they meet evolving climate standards. But
this needs serious investment at the EU level and real collaboration. Without
structured EU-city collaboration, industrial policies risk being disconnected
from economic realities and workforce needs.
A just transition also means ensuring that new green jobs are high-quality,
inclusive and secure. The green economy has the potential to create 30 percent
more jobs compared with a business-as-usual approach, but only if inclusion and
fairness are built in from the start so these jobs will go to those who need
them the most. Cities, in partnership with unions, businesses and workers, can
ensure that industrial shifts translate into widespread job opportunities,
particularly for marginalized communities. Projects such as ‘Boss Ladies’ in
Copenhagen are championing the inclusion of women in the building sector.
A Clean Industrial Deal that excludes cities will fall short. One that
recognizes them as co-creators — alongside businesses, unions and communities —
can build the industrial, climate and social transition Europe urgently needs in
a time of crisis. Cities must be full partners, with direct access to the tools,
funding and policy frameworks needed to drive this transition.
To translate ambition into action, the Clean Industrial Deal must include clear
national frameworks for sustainable investment, early business engagement and
market-shaping tools like grants, innovation hubs and procurement. With strong
public-private partnerships and targeted investments in cities, we can create
the conditions for green jobs, resilient industries and lower energy bills.
This unpredictable decade has presented a once-in-a-generation opportunity for
Europe to create a future that works for everyone. Europe’s clean industrial
strategy must prioritize city-led innovation, invest in workforce transformation
and deliver for those who feel most left behind. That is how Europe can regain
global leadership — not by pulling back, but by proving how climate action can
be the surest path to economic resilience, energy independence and shared
prosperity.
> This unpredictable decade has presented a once-in-a-generation opportunity for
> Europe to create a future that works for everyone.
LONDON — Labour came into office promising to bring down exorbitant energy
bills.
Voters, anxious about the cost of living, expect the government to act on its
pledge — but their bills are still rising.
Inside Downing Street, that is starting to cause alarm.
“The prime minister has given all his ministers a very clear steer that bringing
down bills is of critical importance,” Energy Minister Michael Shanks told the
U.K. parliament last week.
POLITICO spoke to 27 energy analysts, officials, pollsters, Labour politicians
and their opponents, to work out the options open to ministers and the size of
the political challenge if they fail.
Many lamented a public debate marked by a lack of honesty on all sides.
Labour insists that its drive to rid the power system almost completely of
fossil fuels by 2030 will bring down bills. It may well, experts say — but
that’s unlikely to be in time for the next general election in 2029, the only
political timeline that matters for Prime Minister Keir Starmer.
The Conservative opposition, meanwhile, along with rightwing upstarts Reform UK,
blame Labour’s climate policies for high bills, ignoring the primary cause of
spiraling prices: the cost of gas.
There are options for driving down bills. But, as the government is finding,
each involves a fraught political trade-off.
‘ONE OF THE BIGGEST CONCERNS’
Annual average household energy costs will jump another £111 on Tuesday, up to
£1,849. That’s lower than at the peak of the energy crisis, but still 52 percent
higher than at the end of 2021, before the war in Ukraine drove up prices.
High prices are forcing businesses to the wall, too. Royal Stafford, a ceramics
maker in Stoke-on-Trent, closed in February citing the cost of heating its
kilns. It had been open for 180 years.
“The ceramics industry is in our DNA,” local Labour MP David Williams said
during an inquest in parliament in March. “If we fail to act now, we risk losing
not only the unique skills that … have been honed in the Potteries for hundreds
of years, but the communities formed around them.”
Williams isn’t the only worried Labour backbencher. “This is one of the biggest
concerns on the doorstep I hear in the constituency and around the country,
especially in rural areas,” said Terry Jermy. Jermy won his countryside seat
from former Conservative Prime Minister Liz Truss by just 630 votes in July.
Starmer’s enemies sense weakness.
It’s only a matter of time, said Richard Tice, a Reform MP, before the issue
ignites his party’s political project.
“People feel more and more duped. And so, as time goes on, the penny will keep
dropping — and we will just keep ramming home this message that you’ve been lied
to, you’ve been misinformed, you’ve been misled,” he said.
THE TORY PIVOT
Reform are not the only ones sharpening their attacks.
Last month, Conservative leader Kemi Badenoch withdrew her party’s support for
the U.K.’s goal of reaching net zero greenhouse gas emissions by 2050.
“Responsible leaders,” Badenoch said, “don’t indulge in fictions which are going
to make families poorer.”
Few energy experts agree net zero efforts are the main driver of high bills,
though. “The most important factor” is the price of gas, said Guy Newey, the
boss of Energy Systems Catapult.
Tory net-zero skepticism means “surrendering us to fossil-fuel markets
controlled by petrostates and dictators,” Energy Secretary Ed Miliband shot back
during a debate in the House of Commons. Energy department officials pointed
POLITICO to the pipeline of renewable energy already approved or seeking
planning permission, which they said could start to shift electricity bills
before 2029.
“Every wind turbine and solar panel we install will help cut our reliance on
foreign dictators and bring down bills,” a department spokesperson said. “Over
this parliament we will be working relentlessly to translate the much cheaper
wholesale costs of clean power into lower bills for consumers.”
But Miliband’s position is overly simplistic, said David Reiner, a professor of
technology policy at Cambridge University.
Last month, Conservative leader Kemi Badenoch withdrew her party’s support for
the U.K.’s goal of reaching net zero greenhouse gas emissions by 2050. | Carl
Court/Getty Images
“The government has a number of conflicting claims, which I don’t think you can
fully reconcile,” he said. “The idea that we can move relatively rapidly to
reduce emissions, and at the same time we see that somehow reflected in lower
bills, and also have some sense of energy security — it’s not clear that we can
completely square that circle.”
Labour is “not on track” to fulfil its election promise to cut annual bills by
£300 by 2030, agreed Adam Berman, director of policy at trade group Energy UK.
Climate policies “will lower energy bills,” he said, “but it will take time for
that to materialize.”
Privately, some Labour officials admit the same.
“It’s too late in terms of [lower bills contributing to winning] a second
parliament, because people want to see their energy bills come down now, not in
2030,” said a senior government official, granted anonymity to speak candidly
about internal discussions.
THE GAS CONUNDRUM
Labour isn’t facing a full-blown public backlash yet. But one could be on its
way, said Scarlett Maguire, a director at political consultancy J.L. Partners.
“It’s basically there for the picking. … I would say Labour don’t have much
time.”
One official close to Miliband, who was not authorized to speak publicly, said
the party knew it needed to win over the public on the long-term promise of
clean energy bringing stable, cheaper bills.
“We feel we’re on the right track politically,” they said, “and we know how
important it is and we know that we’ve made and will continue to make an
argument to the country about getting off the up-and-down rollercoaster [of gas
prices] and we need to get on and deliver.”
The same official pointed towards work by pollsters More in Common, which showed
almost five times more people believe clean energy would bring down the cost of
living than raise it.
Miliband likes to reference strong public support for net-zero policies, and
derides his opponents as out of touch with both climate science and voters.
But close observers of the Conservatives say its leaders think support for
climate efforts is soft.
Recent polling by Conservative peer Michael Ashcroft found six in 10 voters
expect net zero to hurt them financially. Ongoing economic pain will drown out
any goodwill Labour gets for a principled stance on climate change, argued Henry
Hill, deputy editor of the ConservativeHome website. “The public can be all in
favor of net zero — and then they can throw you out of office for higher energy
bills,” he said.
Starmer knows that his options are limited because, ultimately, dramatic rises
and falls in British bills will be decided far from Britain.
Getting more renewable energy online will start to eat into gas’ dominance and
could begin to impact wholesale power prices within the next five years, several
experts said. | Paul Ellis/AFP via Getty Images
This is because of how the U.K. energy market works. Every half hour, national
electricity prices are set based on the most expensive source of energy required
to meet total demand for the next 30 minutes. Right now, almost all of the time,
that means gas.
Gas price is determined by regional and global market factors, something the
government “can basically do nothing about at all,” said Newey from Energy
Systems Catapult.
Getting more renewable energy online will start to eat into gas’ dominance and
could begin to impact wholesale power prices within the next five years, several
experts said. But to break the grip of commodity prices? “We’re talking about at
least a decade [or] longer,” said Reiner.
“If I was the government, I would be hoping with all my heart that the gas price
fell,” said Newey.
OPTIONS, OPTIONS
Hence Starmer’s demand that his ministers find other ways to ease the pain.
There are policy levers Labour can pull to try and bring down bills. But none
are easy political choices.
One is to shift so-called green levies — the 11 percent of energy bills used to
pay for climate policies and clean energy — elsewhere. This could immediately
drop bills by hundreds of pounds each year. Advocates say ministers could raise
the same money more fairly through general taxation.
But the government is not about to agree to the required income tax hike.
“That’s unlikely to happen in the short term, given the fiscal situation that we
face,” Miliband told MPs in January.
Those levies are heavily weighted onto electricity prices rather than gas, so
shifting that balance could make clean tech like heat pumps cheaper to run. But
that in turn would punish those with gas boilers who can’t afford to make the
switch.
Miliband’s team are also quizzing the industry about extending the length of
contracts awarded to companies building green energy schemes like solar farms
and wind turbines, guaranteeing returns well into the 2040s in exchange for
lower prices.
A separate proposal would scrap Britain’s national wholesale price for
electricity and replace it with a string of local prices — but that process,
expected to conclude in the summer, is bogged down in a row between major energy
companies over whether this will help or hinder energy prices and the green
transition. Government officials warn that such a major overhaul won’t bring a
quick fix on bills, although advocates of the change say it could help in less
than four years.
Then there is the break-glass emergency option: the U.K. government taking on
some, or all, of the green levies. In Australia, the Labor government is
throwing $1.8 billion (£880 million) at pre-election bill relief, after failing
to deliver on promises to cut prices. The incoming German coalition is
discussing spending €50 billion (£42 billion) lowering energy costs.
But copying that would mean the Treasury raising more debt, smashing through
Chancellor Rachel Reeves’ ironclad fiscal rules.
Even the Treasury’s resolve might weaken though if, as the 2029 election looms
closer, Labour still hasn’t found a way to deliver for voters and for its own
restive MPs.
Additional reporting by Giovanna Coi.
BERLIN — Germany’s Greens believed they were only just getting started, but they
may have already reached a dead end.
After becoming a key part of German Chancellor Olaf Scholz’s coalition
government with their best election result ever in 2021, the Greens believed
they would cement their place as an established party with the bonafides to
govern while making the fight against climate change mainstream.
But now the party is set to return to its long-standing position in the
opposition after a disappointing fourth-place finish in Germany’s national
election, far behind Friedrich Merz’s victorious conservatives. That leaves the
Greens — who emerged from environmental and peace protest movements of the 1970s
and early 1980s — with nowhere to go but back to their activist roots.
“We will make life difficult for the conservatives,” said Katharina Dröge, the
co-leader of the Greens parliamentary group, after the vote. “If you really
intend to dismantle climate protection in this country, there will be
parliamentary resistance against it.”
The problem for the Greens is they may have already done everything they can to
influence the next government’s climate policies.
Incoming Chancellor Merz needed the Greens to pass a historic package of
constitutional reforms through parliament earlier this month that will unleash
hundreds of billions of euros in new borrowing for defense and infrastructure
— and the Greens used that unexpected leverage to great effect, pushing the
conservative leader to commit €100 billion to fight climate change in order to
reach a goal of carbon neutrality by 2045.
But with Merz likely to close a deal with the center-left Social Democratic
Party (SPD) to form the next coalition government in the coming weeks, that’s
likely the last direct say Germany’s Greens, once the great hope of European
environmentalists, will have in forming national policy for years. At the same
time, there are many ways things can go wrong from the perspective of those who
want to see the German government do more to fight climate change.
“It’s good that there’s clarity on climate funding, but there’s no guarantee
that the money will actually flow into meaningful climate protection measures,”
said Vicki Duscha, a climate policy expert at the Fraunhofer Society, Europe’s
largest applied research institution.
The Greens are now being forced to confront their relative powerlessness while
locked in an impassioned internal debate about which course to follow in their
quest to win back power.
SPLIT PERSONALITY
The Greens have long been split between two factions: the realos, or realists,
the more moderate and pragmatic wing of the party, and the fundis, the
fundamentalists, who are less willing to compromise on their core beliefs.
The divide in many ways remains intact as the Greens seek a new identity in
opposition, with some in the party seeing a centrist approach as more likely to
bring them back to power, and others arguing they need to double down on their
core ideals.
The problem for the Greens is they may have already done everything they can to
influence the next government’s climate policies. | Maja Hitij/Getty Images
Whichever way they go, they are bound to pay a price.
While in power the Greens endured fierce attacks from right-wing politicians,
who depicted them as willing to destroy Germany’s economy for their ideology.
The Greens’ push to replace gas boilers with more environmentally friendly heat
pumps came under particular attack.
At the same time, climate activists sharply criticized the Greens for making
compromises that party leaders viewed as a necessary response to the Russian
invasion of Ukraine — and the energy crunch that followed.
When Greens politicians advocated one compromise deal on coal in 2022, activists
in movements like Fridays for Future, once seen as a natural ally of the Greens,
became some of their loudest critics. “The climate crisis makes no compromises,”
Linda Kastrup, a Fridays for Future activist, said at the time.
But given their new place in the opposition, the only way to maneuever
politically may be back to the left — to the fundi side of things.
Sven-Christian Kindler, a former Greens lawmaker who did not run for reelection
in the February vote, sees the Greens’ missteps as rooted in what he sees as the
party’s shift to the center in recent years.
When Greens politicians advocated one compromise deal on coal in 2022, activists
in movements like Fridays for Future, once seen as a natural ally of the Greens,
became some of their loudest critics. | Omer Messinger/Getty Images
“Some of us assumed that by being pragmatic, we could fill the political void
left by [former Chancellor] Angela Merkel,” Kindler told POLITICO.
After Russia’s full-scale invasion of Ukraine in February 2022, that shift to
the center became more pronounced, many inside the party believe. Green Economy
Minister Robert Habeck’s move to keep coal plants running longer than promised
was one key shift. But the Greens also abandoned their pacifist roots, with
Foreign Minister Annalena Baerbock forcefully pushing for arms deliveries to
Kyiv.
“All that combined cost us votes — despite what we did right in government,”
Kindler said.
For many inside the party, the solution is clear.
“My suggestion: Become greener again,” said Felix Banaszak, one of the Greens’
national leaders, in a recent interview. “This includes talking more about
ecology again, i.e. climate, environmental and nature conservation, and
justifying climate protection on its own merits — instead of just as a lever for
economic growth,” he went on. “Now is the time to prevent ecological
regression.”
John Kampfner is a British author, broadcaster and commentator. His latest book
“In Search of Berlin” is published by Atlantic. He is a regular POLITICO
columnist.
This is a tale of two cities, two streets and an unlikely divergence that speaks
volumes about the state of politics in Europe today.
Parisian authorities are forging ahead with plans to make the city 100 percent
navigable by bike. On the Rue de Rivoli, one can pedal serenely in the knowledge
that one lane is solely for cyclists, the other reserved for buses.
Meanwhile, in Berlin, the first major decision taken by the incoming senate was
to reopen one of the most famous thoroughfares, which had been partially closed
off to vehicles. On Friedrichstrasse, where one could previously drink a coffee
on wide wooden benches in the middle of the road, the cars have returned.
So, as Germany heads to the polls on Feb. 23, the country once seen as a climate
trailblazer is now in danger of becoming a laggard. And the Christian Democrats
(CDU) — the party almost certain to lead the next government — is on a mission
to dilute environmental targets, with leader Friedrich Merz framing all things
green through the now-familiar “woke” and “anti-growth” lens.
It’s no coincidence that environmental policies were barely mentioned in the
first televised election debate between the CDU leader and Chancellor Olaf
Scholz. Instead, the questions ranged from migration — which dominated the
discourse — to cost of living, kindergarten locations and an arcane battle over
the use of gender in the German language.
In a recent stump speech in Bochum, the industrial heartlands of the Ruhr, Merz
had already stated that the economic policy of recent years had been geared
“almost exclusively toward climate protection. I want to say it clearly as I
mean it: We will and we must change that.”
Along these lines, the chancellor-in-waiting has vowed to scrap subsidies for
environmentally friendly heat pumps (which brought the Greens so much political
trouble last year). He has also described wind turbines as “ugly,” and vowed to
bring back nuclear energy.
Of course, some of this is clearly performative — technologically speaking, a
nuclear comeback won’t happen — but it is central to Merz’s strategy to give the
CDU a more distinctive conservative direction after the centrist era of former
Chancellor Angela Merkel. And just how far he goes in rolling back some of the
progress will depend on the party’s eventual coalition partner.
Friedrich Merz is framing all things green through the now-familiar “woke” and
“anti-growth” lens. | Maja Hitij/Getty Images
As it stands, an alliance with the Social Democratic Party (SDP) — without
Scholz — seems the most likely outcome, not least because they’re less likely to
stand in Merz’s way on the environmental front.
Across the Western world, the green movement is on a downward slide. It isn’t
just the case in Donald Trump’s America — U.K. Prime Minister Keir Starmer has
signaled a British version of “grow, baby, grow” by approving plans to expand
three of London’s airports. And though the mayor of Paris is pushing hard to
green the capital city, French President Emmanuel Macron is showing far less
enthusiasm than before.
When Scholz assembled his “traffic light” coalition in December 2021, the Greens
were a pivotal player. Having secured a record share of the vote, the party was
joining the government for the first time since 2005. And as Robert Habeck — the
party’s current candidate for chancellor — took over the country’s Ministry for
Economic Affairs with an expanded environmental brief, expectations were high.
Then, two months later, came Russian President Vladimir Putin’s invasion of
Ukraine. Suddenly put on a war footing, Habeck’s task was to improvise a new
energy policy and extricate Germany from Russia’s clutches. He was on the hunt
for secure energy from anywhere, whatever the source, and that included going
hat in hand to places like Qatar for supplies of LNG.
The government’s record hasn’t exactly been disastrous, but it has, indeed, been
patchy. It has secured some clear successes, particularly in renewable energy —
wind and solar power provided 47 percent of Germany’s electricity in 2024, up
from 31 percent in 2021. And emissions have steadily fallen, just not at the
rate that was hoped for. As a result, Germany is expected to fail to meet its
goal of cutting 65 percent of greenhouse gases by 2030, compared to 1990.
According to a report by the country’s Council of Experts on Climate Change last
week: “In light of the new geopolitical situation and the cyclical and
structural weakness of the German economy, the conflicting objectives of climate
protection policy with other policy areas are becoming increasingly apparent.”
The language here is studiously diplomatic, but with the target of 1.5 degrees
Celsius now a pipe dream, the commission also noted: “The comprehensive
embedding of climate policy measures into an overall political strategy is now
more important than ever.”
The biggest problem here remains Germany’s car obsession. Too many combustion
engine cars are being registered, while sales of electric vehicles fall — just
like in other countries. Germany was asleep at the wheel in the first phase of
electrification — one of its many failures in innovation. And as spending on
infrastructure atrophied, the unreliability of the once-envied Deutsche Bahn has
become embedded in the national psyche, leading more people to return to the
roads.
It would be unfair to suggest Merz is hostile to the green agenda, per se, but
he’s using hostile rhetoric for a reason, trying to portray the cause as
inimical to economic recovery. Truth is, he’ll only get so far.
Many targets have already been embedded into the German economy and cannot be
unpicked. Whether part of the next government or in opposition, the Greens
aren’t going to just disappear — even as the Left party appears to have
swallowed up a chunk of the Green vote in recent weeks. Indeed, the party has
fallen from its high of 15 percent, but not by much.
Acknowledging just how much the mood has turned, though, even the Greens
themselves don’t mention climate protection that much on the campaign trail.
They’d rather talk about housing and health care instead. Meanwhile, Habeck is
caught in between, the whipping boy for both sides, denounced as metropolitan
and “woke” by populists and as a sellout by the left. Much of the movement’s
impetus has dissipated — for the moment at least.
LONDON — Britain hopes to keep out of Donald Trump’s global trade war. But
persuading the unpredictable United States president not to clobber British
imports with his punitive tariff regime won’t be easy.
As Trump threatens to slap tariffs on friendly countries like Canada and insists
he’ll also hit the European Union, officials in London are mulling ways to avoid
taking a hit of their own.
Trump insisted Sunday night that a deal to spare Britain “can be worked out.” So
could buying more American gas do the job?
It’s a plan — alongside a potential boost in British arms imports from the U.S.
— now being talked up in Westminster as a way to curry favor with the
commander-in-chief.
“We are going to have to get gas from somewhere if we are producing less in the
North Sea,” former Energy Secretary and U.K. Chancellor Kwasi Kwarteng told
POLITICO, referring to the fast-depleting reserves off the U.K. coast.
Until more nuclear power comes online, “the U.S. is the natural place to go,”
Kwarteng argued. “The only other options are Qatar or Russia — and we’re not
going to get it from there.”
This sort of pivot could land well with Trump, who is already trying to order
around the EU on fossil fuels.
“The one thing they can do quickly is buy our oil and gas,” Trump said, when
asked how the bloc could avoid threatened tariffs.
He has also moved to scrap a Joe Biden-era freeze on permits for new liquefied
natural gas (LNG) drilling projects — a process by which gas is cooled into a
liquid and shipped across the world before being converted back to gas.
One former U.K. energy department figure — granted anonymity to speak freely —
agreed a deal could be possible, pointing out the U.K. made similar arrangements
following Russia’s invasion of Ukraine. That resulted in U.S. LNG ramping-up to
26 percent of total U.K. energy imports. “Better to buy from the States than
Qatar,” they said, echoing Kwarteng.
“Something Trump wants is for the U.K. and European countries to increase their
purchases of U.S. energy, which could be [used as] a bargaining chip,” agreed
Maxime Darmet, a senior economist at Allianz Trade.
Matthew Oresman, partner at the international law firm Pillsbury, said: “That’s
an area where there’s a U.K. need, and a U.S. desire and U.S. supply … which
could be part of that bridge-building.”
Donald Trump has also moved to scrap a Joe Biden-era freeze on permits for new
liquefied natural gas (LNG) drilling projects. | Chris McGrath/Getty Images
“I think there are going to be a number of bargains that the U.K. might need to
put on the table,” Labour MP and Business and Trade Committee Chair Liam Byrne
said.
Trump is a “very transaction-focused politician,” Byrne said, adding: “LNG
purchases could be one thing the U.K. could offer to do.”
GREEN GRUMBLES OVER GAS GUZZLING
More gas imports will surely prove controversial with the North Sea oil and gas
sector, already frustrated by the government’s toughened tax regime and its
moves to ban new fossil fuel licenses in British waters.
But dependence on U.S. LNG will only “increase as time goes on” as domestic
output falls during the next decade, predicted Glen Bryn-Jacobsen from National
Gas.
LNG also pollutes more heavily than domestically-sourced gas — due to the
regasification process and shipping — so stepping up imports could all create
yet another Whitehall row between growth hawks and greenies.
Ana Maria Jaller-Makarewicz, lead energy analyst, Europe, at the Institute for
Energy Economics and Financial Analysis, argued the U.K. should be ramping up
domestic clean energy as an alternative.
“Instead of committing to more LNG imports, risking increasing potential
emission impact, the U.K. should continue reducing gas demand by scaling up
renewable energy and deploying heat pumps,” she said.
“We should be doing everything we can to reduce our reliance on gas,” said Liam
Hardy, head of research at the Green Alliance think tank. He added: “If we must
import gas, doing this by pipeline from Norway leads to much lower emissions
than shipping it from the United States.”
Those concerns are unlikely to get much of a hearing in the White House, though,
where Trump has pledged to “drill, baby, drill.” He signed an executive order
vowing to withdraw the U.S. from the Paris Accord, a key agreement for pursuing
global climate action, the evening of his inauguration.
Speaking of his dealings with the Trump administration during his first term,
Kwarteng said: “They were very ideological. We were very keen to decarbonize at
the time. The U.S. had no truck with that at all. Their priorities were
divergent, even if we got on well with his personal interlocutors.”
JET DIPLOMACY
It’s not only energy imports where Whitehall’s attention is turning in the era
of Trump’s trade war. The U.K. may also look to buy more U.S. defense exports to
pacify Trump and avoid future tariffs.
One defense industry figure, granted anonymity to speak freely, said further
British orders of the American-made F-35 fighter jets could now be in play.
U.S. LNG ramped-up to 26 percent of total U.K. energy imports. | Mario
Tama/Getty Images
The U.K. has to date ordered 48 of the fighter jets, after originally promising
to buy 138 in 2015.
But there has been doubt about reaching this figure due to Britain’s efforts to
build new stealth jets with Italy and Japan as a part of the Global Combat Air
Program (GCAP).
Trump’s return to the White House may change the government’s thinking. A senior
Whitehall figure said when it came to purchasing more American F-35s “everything
was on the table” as a part of the U.K.’s ongoing defense review.
The British government has been strategizing for months on how to convince the
president not to slap tariffs on British goods.
Sam Lowe, trade expert at Flint Global, said one of the most difficult scenarios
for Starmer would be a demand from Trump to buy more U.S. food products —
particularly beef or chicken.
Lowe said this would “require regulatory change” and result in a “big fight with
farmers.”
This was a serious block to a trade deal in Trump’s first term as it would
require the British government to accept U.S. food safety standards and
legislate to allow practices like hormone-treated beef or chlorine-washed
chicken on supermarket shelves.
Starmer has already said this is a red line his government will not cross. But
in a new world defined by Trumpian deal-making, the risk of tariffs may yet
concentrate minds in Whitehall.
This article has been updated. Graham Lanktree contributed to this report.
BERLIN — Friedrich Merz took another step toward becoming German chancellor on
Monday — while launching some scathing attacks on the very people with whom he
will likely have to govern.
As the conservative leader lined up with most of Germany’s lawmakers in a vote
of a no-confidence in the country’s beleaguered current chancellor, Olaf Scholz,
Merz accused the heads of the center-left Social Democratic Party (SPD) and the
Greens of having humiliated the country and caused its economic decline.
The heated and largely inward-looking parliamentary debate preceding the vote —
the SPD and the Greens are in government now and could be future coalition
partners for Merz as well — suggested the next coalition may be as incompatible
and conflictual as the one that just fell.
“You’re leaving the country with one of the biggest economic crises in its
post-war history,” Merz told Scholz, accusing the SPD leader of “embarrassing
Germany” in dealings with its European counterparts.
The vote against Scholz paves the way for an early election set for Feb. 23, an
outcome that was virtually assured following the collapse of Germany’s fractious
three-party coalition last month. Monday’s bitter debate suggests that what
comes next may not be pretty either, at a time when Europe is dealing with
multiple fragmented, weak governments.
MERZ’S ONLY CHOICES
Germany’s center-right Christian Democratic Union (CDU), led by Merz, and its
conservative sister party in Bavaria — the Christian Social Union (CSU) — are
currently leading polls by a wide margin. But they remain far from an absolute
majority, so will need to govern in coalition with at least one other party.
But you wouldn’t have guessed it from the tenor of Monday’s debate. “We are
replacing this standstill and the redistributive economic policies of the Social
Democrats and Greens with an economic policy of motivation and competitiveness,”
Merz said.
He argued for cuts to social spending and more private investment in the
economy, and castigated Economy Minister Robert Habeck of the Greens as “the
face of Germany’s economic crisis.”
Merz’s natural coalition partner, the fiscally conservative Free Democratic
Party (FDP) led by former Finance Minister Christian Lindner, is polling at just
five percent, not nearly enough for an absolute majority and barely above the
threshold needed to gain seats in parliament.
That doesn’t leave Merz with many palatable choices for coalition allies.
Germany’s parliament is increasingly fractured due the rise of radical parties
on both sides of the spectrum. Merz has said he refuses to govern with the
radical-right Alternative for Germany (AfD), which is now polling in second
place at 19 percent. Meanwhile, the newly formed populist-left Sahra Wagenknecht
Alliance (BSW) is in fifth place with 7 percent.
‘PREOCCUPIED WITH OURSELVES’
Much of the political conversation so far has centered on Germany’s domestic
issues, rather than on how the country will deal with the massive global
challenges it now confronts, from Donald Trump’s return to the White House — and
the possibility that he’ll stop U.S. military support for Ukraine — to the
breakdown of the free trade that has long underpinned Germany’s export-oriented
economic model.
Scholz, for example, barely mentioned Ukraine in his comments during Monday’s
parliamentary debate. When he did mention the war it was mainly to reinforce the
message that he is the prudent choice to prevent an escalation in the fighting
given his refusal to provide Ukraine with German-made Taurus cruise missiles.
Friedrich Merz criticized Olaf Scholz for failing to keep his promise, following
Russia’s 2022 invasion of Ukraine, to fundamentally rebuild Germany’s depleted
armed forces after decades of disarmament. | Hannibal Hanschke/EPA-EFE
“We will not do anything that puts our own security at risk and that is why we
are not supplying any cruise missiles, a far-reaching weapon that can have a
deep impact on Russia,” Scholz said. “And we are certainly not sending any
German soldiers to fight in this war, not with me as chancellor.”
Merz, on the other hand, criticized Scholz for failing to keep his promise,
following Russia’s 2022 invasion of Ukraine, to fundamentally rebuild Germany’s
depleted armed forces after decades of disarmament.
But he offered few details on how he would pay for such a military expansion,
other than to say it would be a budgetary priority.
Habeck was one of the few to warn that Germany’s pre-election debate has been
too insular, noting “we are largely preoccupied with ourselves” while the world
around us “is not in a good state of affairs.”
He also warned the next government may not bring the unity and effectiveness
many desire.
“There are no guarantees that we will get back to a quick and smooth government
after the new election,” he said.
TRAVELING IN ANOTHER GALAXY
Scholz began the debate by defending his record as chancellor and vowing to
maintain social spending, securing pensions and jobs while pursuing a “politics
of respect” for those with lower incomes. He blamed his political opponents for
Germany’s stagnating economy.
“We need more growth,” he said. “But then we must ask ourselves how much
stronger our economy could have grown if our infrastructure were up to scratch,
if we had the electricity grids, wind turbines and solar parks that we need for
a clean, secure and affordable energy supply — electricity grids, wind turbines
and solar parks that some of the parties represented here have been fighting
against for years.”
Merz seemed to save much of his vitriol for Robert Habeck, the chancellor
candidate for the Greens and economy minister inside Scholz’s coalition,
lambasting his focus on clean-energy initiatives. | Hannibal Hanschke/EPA-EFE
Merz shot back, asking Scholz what he had been doing while in government as an
SPD politician for 22 of the last 26 years.
“Why didn’t you actually do all the things you mentioned here?” Merz asked.
“Were you traveling in another galaxy? Have you traveled to another planet?”
But Merz seemed to save much of his vitriol for Habeck, the chancellor candidate
for the Greens and economy minister inside Scholz’s coalition, lambasting his
focus on clean-energy initiatives.
“Mr. Habeck, you are the federal minister of economics in the fourth-largest
economy in the world,” Merz said. “People want to know more than how they can
replace their refrigerators and how they can get a heat pump into their cellar.”
Merz also criticized Green proposals to raise taxes on the wealthy.
“I can only say to you, have a good journey with your proposals and then look
for a coalition partner who will go along with them,” he said. “It’s not us, Mr.
Habeck, to put it bluntly. No way will you be able to do this economic policy
with us, to make it very clear right from the start.”
Nette Nöstlinger contributed to this article from Brussels.