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The problem with Trump’s oil obsession
Ivo Daalder, a former U.S. ambassador to NATO, is a senior fellow at Harvard University’s Belfer Center and host of the weekly podcast “World Review with Ivo Daalder.” He writes POLITICO’s From Across the Pond column In justifying his military operation against Venezuela, U.S. President Donald Trump reached back in time over two centuries and grabbed hold of the Monroe Doctrine. But it’s another 19th-century interest that propelled his extraordinary gambit in the first place — oil. According to the New York Times, what started as an effort to press the Venezuelan regime to cede power and end the flow of drugs and immigrants into the U.S., began shifting into a determination to seize the country’s oil last fall. And the president was the driving force behind this shift. That’s hardly surprising though — Trump has been obsessed with oil for decades, even as most of the world is actively trying to leave it behind. As far back as the 1980s, Trump was complaining about the U.S. protecting Japan, Saudi Arabia and others to secure the free flow of oil. “The world is laughing at America’s politicians as we protect ships we don’t own, carrying oil we don’t need, destined for allies who won’t help,” he wrote in a 1987 newspaper ad. Having supported the Iraq War from the outset, he later complained that the U.S. hadn’t sufficiently benefited from it. “I would take the oil,” he told the Wall Street Journal in 2011. “I would not leave Iraq and let Iran take the oil.” That same year, he also dismissed humanitarian concerns in Libya, saying: “I am only interested in Libya if we take the oil.” In justifying his military operation against Venezuela, U.S. President Donald Trump reached back in time over two centuries and grabbed hold of the Monroe Doctrine. | Henry Chirinos/EPA Unsurprisingly, “take the oil” later became the mantra for Trump’s first presidential campaign — and for his first term in office. Complaining that the U.S. got “nothing” for all the money it spent invading Iraq: “It used to be, ‘To the victor belong the spoils’ … I always said, ‘Take the oil,’” he griped during a Commander in Chief Forum in 2016. As president, he also insisted on keeping U.S. forces in Syria for that very reason in 2019. “I like oil,” he said, “we’re keeping the oil.” But while Iraq, Libya and even Syria were all conflicts initiated by Trump’s predecessors, Venezuela is quite another matter. Weeks before seizing Venezuelan President Nicolás Maduro, Trump made clear what needed to happen: On Dec. 16, 2025, he announced an oil blockade of the country “until such time as they return to the United States of America all of the Oil, Land, and other Assets that they previously stole from us.” Then, after capturing Maduro, Trump declared the U.S. would “run the country” in order to get its oil. “We’re in the oil business,” he stated. “We’re going to have our very large United States oil companies … go in, spend billions of dollars, fix the badly broken infrastructure, and start making money.” “We’re going to be taking out a tremendous amount of wealth out of the ground,” Trump insisted. “It goes also to the United States of America in the form of reimbursement for the damages caused us by that country.” On Wednesday, Energy Secretary Chris Wright announced that Venezuela would ship its oil to the U.S. “and then infinitely, going forward, we will sell the production that comes out of Venezuela into the marketplace,” effectively declaring the expropriation of Venezuela’s most important national resources. All of this reeks of 19th-century imperialism. But the problem with Trump’s oil obsession goes deeper than his urge to steal it from others — by force if necessary. He is fixated on a depleting resource of steadily declining importance. And yet, this doesn’t seem to matter. Throughout his reelection campaign, Trump still emphasized the need to produce more oil. “Drill, baby, drill” became as central to his energy policy as “take the oil” was to his views on military intervention. He called on oil executives to raise $1 billion for his campaign, promising his administration would be “a great deal” for their industry. And he talked incessantly of the large reservoirs of “liquid gold” in the U.S., claiming: “We’re going to make a fortune.” But these weren’t just campaign promises. Upon his return to office, Trump unleashed the full force of the U.S. government to boost oil production at home and exports abroad. He established a National Energy Dominance Council, opened protected lands in Alaska and the Arctic National Wildlife Refuge for oil and gas exploration, signed a mandate for immediate offshore oil and gas leases into law, and accelerated permitting reforms to speed up pipeline construction, refinery expansion and liquid natural gas exports. At the same time, he’s been castigating efforts to cut greenhouse gas emissions as part of a climate change “hoax,” he withdrew the U.S. from the Paris Climate Agreement once again, and he took a series of steps to end the long-term transition from fossil fuels to renewable energy. He signed a law ending credits and subsidies to encourage residential solar and electric vehicle purchases, invoked national security to halt offshore wind production and terminated grants encouraging renewable energy production. Then, after capturing Nicolás Maduro, Trump declared the U.S. would “run the country” in order to get its oil. | Henry Chirinos/EPA The problem with all these efforts is that the U.S. is now banking on fossil fuels, precisely as their global future is waning. Today, oil production is already outpacing consumption, and global demand is expected to peak later this decade. Over the last 12 months, the cost of oil has decreased by over 23 percent, pricing further exploration and production increasingly out of the market. Meanwhile, renewable energy is becoming vastly more cost-effective. The future, increasingly, lies in renewables to drive our cars; heat, cool and light up our homes; power our data centers, advanced manufacturing factories and everything else that sustains our lives on Earth. By harnessing the power of the sun, the force of wind and the heat of the Earth, China is building its future on inexhaustible resources. And while Beijing is leading the way, many others are following in its footsteps. All this, just as the U.S. goes back to relying on an exhaustive fossil fuel supply. What Trump is betting on is becoming the world’s largest — and last — petrostate. China is betting on becoming its largest and lasting electrostate. Which side would you rather be on?
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U.S. foreign policy
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The US led the world to reach a huge climate deal. Then, it switched sides.
It’s been a decade since the U.S. and Europe pushed the world to embrace a historic agreement to stop the planet’s runaway warming. The deal among nearly 200 nations offered a potential “turning point for the world,” then-U.S. President Barack Obama said. Eventually, almost every country on Earth signed the 2015 Paris Agreement, a pact whose success would rest on peer pressure, rising ambition and the economics of a clean energy revolution. But 10 years later, the actions needed to fulfill those hopes are falling short. The United States has quit the deal — twice. President Donald Trump is throttling green energy projects at home and finding allies to help him undermine climate initiatives abroad, while inking trade deals that commit countries to buying more U.S. fossil fuels. Europe remains on track to meet its climate commitments, but its resolve is wavering, as price-weary voters and the rise of far-right parties raise doubts about how quickly the bloc can deliver its pledge to turn away from fossil fuels. Paris has helped ingrain climate change awareness in popular culture and policy, led countries and companies to pledge to cut their carbon pollution to zero and helped steer a wave of investments into clean energy. Scientists say it appears to have lessened the odds of the most catastrophic levels of warming. On the downside, oil and gas production hasn’t yet peaked, and climate pollution and temperatures are still rising — with the latter just tenths of a degree from the tipping point agreed in Paris. But the costs of green energy have fallen so much that, in most parts of the world, it’s the cheapest form of power and is being installed at rates unthinkable 10 years ago. World leaders and diplomats who are in Brazil starting this week for the United Nations’ annual climate talks will face a test to stand up for Paris in the face of Trump’s opposition while highlighting that its goal are both necessary and beneficial. The summit in the Amazonian port city of Belém was supposed to be the place where rich and poor countries would celebrate their progress and commit themselves to ever-sharper cuts in greenhouse gas pollution. Instead, U.S. contempt for global climate efforts and a muddled message from Europe are adding headwinds to a moment that is far more turbulent than the one in which the Paris Agreement was adopted. Some climate veterans are still optimists — to a point. “I think that the basic architecture is resistant to Trump’s destruction,” said John Podesta, chair of the board of the liberal Center for American Progress, who coordinated climate policy under Obama and former President Joe Biden. But that resistance could wilt if the U.S. stays outside the agreement, depriving the climate movement of American leadership and support, he said. “If all that’s gone, and it’s gone for a long time, I don’t know whether the structure holds together,” Podesta added. Other climate diplomats say the cooperative spirit of 2015 would be hard to recreate now, which is why acting on Paris is so essential. “If we had to renegotiate Paris today, we’d never get the agreement that we had 10 years ago,” said Rachel Kyte, the United Kingdom’s special climate representative. “But we can also look to these extraordinary data points, which show that the direction of travel is very clear,” she said, referring to growth of clean energy. “And most people who protect where their money is going to be are interested in that direction of travel.” THE PARIS PARADOX One thing that hasn’t faded is the business case for clean energy. If anything, the economic drivers behind the investments that Paris helped unleash have surpassed even what the Paris deal’s authors anticipated. But the political will to keep countries driving forward has stalled in some places as the United States — the world’s largest economy, sole military superpower and historically biggest climate polluter — attacks its very foundation. Trump’s attempts to undermine the agreement, summed up by the 2017 White House slogan “Pittsburgh, not Paris,” has affected European ambitions as well, French climate diplomat Laurence Tubiana told reporters late last month. “I have never seen such aggressivity against national climate policy all over because of the U.S.,” said Tubiana, a key architect of the Paris Agreement. “So we are really confronted with an ideological battle, a cultural battle, where climate is in that package the U.S. government wants to defeat.” The White House said Trump is focused on developing U.S. oil and engaging with world leaders on energy issues, rather than what it dubs the “green new scam.” The U.S. will not send high-level representatives to COP30. “The Green New Scam would have killed America if President Trump had not been elected to implement his commonsense energy agenda,” said Taylor Rogers, a spokesperson. “President Trump will not jeopardize our country’s economic and national security to pursue vague climate goals that are killing other countries.” Trump is not the only challenge facing Paris, of course. Even under Obama, the U.S. insisted that the Paris climate pollution targets had to be nonbinding, avoiding the need for a Senate ratification vote that would most likely fail. But unlike previous climate pacts that the U.S. had declined to join, all countries — including, most notably, China — would have to submit a pollution-cutting plan. The accord left it up to the governments themselves to carry out their own pledges and to push laggards to do better. An unusual confluence of political winds helped drive the bargaining. Obama, who was staking part of his legacy on getting a global climate agreement, had spent the year leading up to Paris negotiating a separate deal with China in which both countries committed to cutting their world-leading pollution. France, the host of the Paris talks, was also determined to strike a worldwide pact. In the year that followed, more than 160 countries submitted their initial plans to tackle climate change domestically and began working to finish the rules that would undergird the agreement. “The Paris Agreement isn’t a machine that churns out ambition. It basically reflects back to us the level of ambition that we have agreed to … and suggests what else is needed to get back on track,” said Kaveh Guilanpour, vice president for international strategies at the Center for Climate and Energy Solutions and a negotiator for the United Kingdom during the Paris talks. “Whether countries do that or not, it’s essentially then a matter for them.” Catherine McKenna, Canada’s former environment minister and a lead negotiator of the Paris Agreement’s carbon crediting mechanism, called the deal an “incredible feat” — but not a self-executing one. “The problem is now it’s really up to countries as well as cities, regions, companies and financial institutions to act,” she said. “It’s not a treaty thing anymore — it’s now, ‘Do the work.’” WHEN GREEN TURNS GRAY Signs of discord are not hard to find around the globe. China is tightening its grip on clean energy manufacturing and exports, ensuring more countries have access to low-cost renewables, but creating tensions in places that also want to benefit from jobs and revenue from making those goods and fear depending too much on one country. Canadian Prime Minister Mark Carney, a former United Nations climate envoy, eliminated his country’s consumer carbon tax and is planning to tap more natural gas to toughen economic defenses against the United States. The European Union spent the past five years developing a vast web of green regulations and sectoral measures, and the bloc estimates that it’s roughly on track to meet those goals. But many of the EU’s 27 governments — under pressure from the rising far right, high energy prices, the decline of traditional industry and Russia’s war against Ukraine — are now demanding that the EU reevaluate many of those policies. Still, views within the bloc diverge sharply, with some pushing for small tweaks and others for rolling back large swaths of legislation. “Europe must remain a continent of consistency,” French President Emmanuel Macron said after a meeting of EU leaders in October. “It must step up on competitiveness, but it must not give up on its [climate] goals.” Poland’s Prime Minister Donald Tusk, in contrast, said after the same meeting that he felt vindicated about his country’s long-standing opposition to the EU’s green agenda: “In most European capitals, people today think differently about these exaggerated European climate ambitions.” Worldwide, most countries have not submitted their latest carbon-cutting plans to the United Nations. While the plans that governments have announced mostly expand on their previous ones, they still make only modest reductions against what is needed to limit Earth’s warming since the preindustrial era to 1.5 degrees Celsius. Exceeding that threshold, scientists say, would lead to more lives lost and physical and economic damage that would be ever harder to recover from with each tenth of a degree of additional warming. The U.N.’s latest report showing the gap between countries’ new pledges and the Paris targets found that the world is on track for between 2.3 and 2.5 degrees of warming, a marginal difference from plans submitted in 2020 that is largely canceled out when the U.S. pledge is omitted. Policies in place now are pointing toward 2.8 degrees of warming. “We need unprecedented cuts to greenhouse gas emissions now in an ever-compressing timeframe and amid a challenging geopolitical context,” said Inger Andersen, executive director of the U.N. Environment Programme. But doing so also makes sense, she added. “This where the market is showing that these kind of investments in smart, clean and green is actually driving jobs and opportunities. This is where the future lies.” U.N. Secretary-General António Guterres said in a video message Tuesday that overshooting the 1.5-degrees target of Paris was now inevitable in the coming years imploring leaders to rapidly roll out renewables and stop expanding oil, gas and coal to ensure that overshoot was short-lived. “We’re in a huge mess,” said Bill Hare, a longtime climate scientist who founded the policy institute Climate Analytics. Greenhouse gas pollution hasn’t fallen, and action has flat lined even as climate-related disasters have increased. “I think what’s upcoming is a major test for the Paris Agreement, probably the major test. Can this agreement move forward under the weight of all of these challenges?” Hare asked. “If it can’t do that, governments are going to be asking about the benefits of it, frankly.” That doesn’t mean all is lost. In 2015, the world was headed for around 4 degrees Celsius of warming, an amount that researchers say would have been devastating for much of the planet. Today, that projection is roughly a degree Celsius lower. “I think a lot of us in Paris were very dubious at the time that we would ever limit warming to 1.5,” said Elliot Diringer, a former climate official who led the Center for Climate and Energy Solutions’ international program during the Paris talks. “The question is whether we are better off by virtue of the Paris Agreement,” he said. “I think the answer is yes. Are we where we need to be? Absolutely not.” GREEN TECHNOLOGY DEFYING EXPECTATIONS In addition, the adoption of clean energy technology has moved even faster than projected — sparking what one climate veteran has called a shift in global climate politics. “We are no longer in a world in which only climate politics has a leading role and a substantial role, but increasingly, climate economics,” said Christiana Figueres, executive secretary of the United Nations Framework Convention on Climate Change in 2015. “Yes, politics is important; no longer as important as it was 10 years ago.” Annual solar deployment globally is 15 times greater than the International Energy Agency predicted in 2015, according to a recent analysis from the Energy and Climate Intelligence Unit, a U.K. nonprofit. Renewables now account for more than 90 percent of new power capacity added globally every year, BloombergNEF reported. China is deploying record amounts of renewables and lowering costs for countries such as Brazil and Pakistan, which has seen solar installations skyrocket. Even in the United States, where Trump repealed many of Biden’s tax breaks and other incentives, BloombergNEF predicts that power companies will continue to deploy green sources, in large part because they’re often the fastest source of new electricity. Costs for wind and batteries and falling, too. Electric vehicle sales are soaring in many countries, thanks in large part to the huge number of inexpensive vehicles being pumped out by China’s BYD, the world’s largest EV-maker. Worldwide clean energy investments are now twice as much as fossil fuels spending, according to the International Energy Agency. “Today, you can actually talk about deploying clean energy technologies just because of their cost competitiveness and ability to lower energy system costs,” said Robbie Orvis, senior director of modeling and analysis at the research institution Energy Innovation. “You don’t actually even have to say ‘climate’ for a lot of them, and that just wasn’t true 10 years ago.” The economic trends of the past decade have been striking, said Todd Stern, the U.S. climate envoy who negotiated the Paris Agreement. “Paris is something that was seen all over the world, seen by other countries, seen in boardrooms, as the first time in more than 20 years when you finally got heads of government saying, ‘Yes, let’s do this,’” he said. “And that’s not the only reason why there was tremendous technological development, but it sure didn’t hurt.” Still, limits exist to how far businesses can take the clean energy transition on their own. “You need government intervention of some kind, whether that’s a stick or a carrot, to push the economy towards a low-carbon trajectory,” said Andrew Wilson, deputy secretary general of policy at the International Chamber of Commerce. “If governments press the brakes on climate action or seriously start to soft pedal, then it does have a limiting effect.” Brazil, the host of COP30, says it wants to demonstrate that multilateralism still works and is relevant to peoples’ lives and capable of addressing the climate impacts communities around the world are facing. But the goal of this year’s talks might be even more straightforward, said Guilanpour, the former negotiator. “If we come out of COP30 demonstrating that the Paris Agreement is alive and functioning,” he said, “I think in the current context, that is pretty newsworthy of itself.” Nicolas Camut in Paris, Zi-Ann Lum in Ottawa, Karl Mathiesen in London and Zia Weise in Brussels contributed to this report.
Energy and Climate
Climate change
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Emissions
King Charles will warn Trump about the fate of the planet. Trump probably won’t listen.
LONDON — It was June 2019, and the president of the United States was taking tea with the future British king.  The meeting between Donald Trump and then Prince Charles was scheduled to last 15 minutes. It stretched to an hour and a half.   Trump could barely get a word in edgeways. Charles did “most of the talking,” the president told a TV interviewer the day after they met.   One topic dominated. “He is …” Trump said, hesitating momentarily, “… he is really into climate change.”  Without global action on the climate, Charles wrote back in 2010, the world is on “the brink of potential disaster.” At the London royal residence Clarence House during Trump’s first U.K. state visit, face-to-face with its most powerful inhabitant, Charles decided to speak on behalf of the planet.  It was tea with a side of climate catastrophe.   Six years on, the stage is set for Charles — now king — to try to sway the president again. A second term Trump — bolder, brasher, and no less destructive to global efforts to tackle climate change — is heading back to the U.K. for an unprecedented second state visit and to another meeting with the king. They meet at Windsor Castle on Wednesday.  In the years between the two visits — with extreme weather events, wildfires and flooding increasingly attributed to a changing climate — Charles’ convictions have only strengthened, say those who know him well.  “His views have not changed and will not change. If anything I think he feels it, probably, more strongly than ever,” said the broadcaster Jonathan Dimbleby, a friend and biographer of the king. “It seems self-evident to me, therefore, that he would regard President Trump’s attitude towards climate change and the environment as potentially calamitous.”   But stakes are higher for the king in 2025 than in 2019. The meeting represents an extraordinary influencing opportunity for a monarch who has spent his life deploying “soft power” in the service of cherished environmental causes. But now he is head of state, any overtly political conversation about climate change risks stress-testing the U.K.’s constitutional settlement between government and monarch.  Charles has a duty, says constitutional expert Craig Prescott, to “support the [elected] government of the day in what they want to achieve in foreign relations.”  And “in a broad sense,” he added, “that means ‘getting on the good side of Trump.’”  The meeting between Donald Trump and then Prince Charles was scheduled to last 15 minutes. It stretched to an hour and a half. | Pool Photo by Toby Melville via Getty Images Labour’s focus on an ambitious green transition, though, gives the king some leeway to speak in favor of international climate action.  Both Dimbleby and Ian Skelly, a former speechwriter for Charles who co-wrote his 2010 book Harmony, expect him to do exactly that.  “I would be astonished if in this meeting, as at the last meeting , he does not raise the issue of climate change and biodiversity in any chance he has to speak privately to Trump,” said Dimbleby.   The king will be “diplomatic,” Dimbleby added, and would heed his “constitutional duty,” avoiding “saying anything that will allow Trump to think there is a bus ticket between him and the British government. … But he won’t avoid the issue. He cares about it too much.”  “He knows exactly where the limits are,” said Skelly. “He’s not going to start banging the table or anything. … He will outline his concerns in general terms, I have no doubt about that — and perhaps warn the most powerful person in the world about the dangers of doing nothing.”  Buckingham Palace and Downing Street declined to comment when asked whether the king would raise climate with Trump, or whether this has been discussed in preparations for the state visit.  HAVE YOU READ MY BOOK, MR. PRESIDENT?  In the time since that tea at Clarence House, the President has shown no sign that Charles’ entreaties on the part of the planet had any impact. (And they didn’t have much effect at the time, by one insider’s account. Trump complained the conversation “had been terrible,” wrote former White House Press Secretary Stephanie Grisham in her memoir.  “‘Nothing but climate change,’ he groused, rolling his eyes.”)  The U.S. has once again withdrawn from the Paris climate accords. Trump’s Department of Energy has rejected established climate science. America’s fossil fuel firms and investors — some of whom helped Trump get elected — have been invited to “Drill, baby, drill.”  With America out of the fight, the world’s chances of avoiding the direst consequences of climate change have taken a serious blow.  Charles, on the other hand, has only grown more convinced that climate change, unchecked, will cause “inevitable catastrophes,” as he put it in Harmony, his cri-de-coeur on saving the planet.  Dimbleby predicted that, this time around, one subtle way allowing the king to make his point would be to gift Trump a copy of that book — a treatise on environmentalism, traditional wisdom and sustainability that diagnoses “a spiritual void” in modern societies, a void which has “opened the way for what many people see as an excessive personal focus.”  “I’m sure [the king] won’t let [Trump] out of his sight before giving him a copy,” said Dimbleby. Chinese Premier (and Trump’s main geopolitical rival) Xi Jinping already has a copy, said Skelly.  But the meeting comes at a time when Prime Minister Keir Starmer — boxed in politically by the need to keep the U.S. on side for the sake of trade, Ukraine and European security — has avoided openly criticizing the Trump administration’s attacks on climate science or its embrace of fossil fuels.  His government will not want the king to say or do anything that upsets transatlantic relations. Even when the president, sitting next to Starmer, trashed wind energy ­— the main pillar of U.K. decarbonization plans — on a July visit to his Turnberry golf course in Scotland, the prime minister mustered no defense beyond quietly insisting the U.K. was pursuing a “mix” of energy sources.  If Trump starts railing against windmills again in his chat to the king, he might get a (slightly) more robust response, predicted Skelly. “The response to that will be: ‘What else are we going to do without destroying the Earth?’ That’s the question he’ll come back with, I’d imagine.”  HOW TO TALK TO TRUMP ABOUT CLIMATE  Some who have worked with Trump think that, because of the unique place Britain and the royals occupy in his worldview, Charles stands a better chance than most in getting the president to listen.  “President Trump isn’t going to become an environmentalist over a cup of tea with the king. But I think he’ll definitely hear him out — in a way that maybe he wouldn’t with other folks,” said Michael Martins, founder of the firm Overton Advisory, who was a political and economic specialist at the U.S. embassy in London during the last state visit.  “He likes the pageantry. He likes the optics of it. … Engaging with a king, Trump will feel he’s on the same footing. He will give him more of a hearing than if it was, I don’t know … Ed Miliband.”  Trump has even declared his “love” for Charles.  The royal admiration comes from Trump’s mother. Scottish-born Mary Anne Trump “loved the Queen,” Trump said in July. The ratings-obsessed president appears to consider the late monarch the ultimate TV star. “Whenever the queen was on television, [my mother] wanted to watch,” he said during July’s Turnberry visit.    The king could benefit from an emotional link to First Lady Melania Trump, too. She was present at the 2019 meeting and sat next to Charles at the state banquet that year. In her 2024 memoir, Melania says they “engaged in an interesting conversation about his deep-rooted commitment to environmental conservation.”  She and Trump “exchange letters with King Charles to this day,” Melania wrote. TAKING TEA AT THE END OF THE WORLD  The king will have plenty of chances to make his case.   A state visit provides “quite a lot of time to talk” for monarch and president, said one former senior British government official, granted anonymity to discuss the royals and their relationship with government.  There will be a state banquet plus at least one private meeting in between, they said. Charles may also be able to sneak some choice phrases into any speech he gives at the banquet. Trump’s chief U.K. political ally is Nigel Farage, whose anti-net-zero Reform UK currently lead opinion polls. | John Keeble/Getty Images The king receives regular briefing papers from the Foreign Office. As the meeting looms, the same person suggested, he may be preparing thoughts on how to combine a lifetime’s campaigning and reading with those briefings, to shape the opportunity to lobby a president.  “He will be reading his foreign policy material with even more interest than normal. He will probably be thinking about whether there is any way in which he can pitch his arguments to Trump that will shift him — a little bit — toward putting his shoulder to the climate change wheel,” the former senior official said.    “He won’t say: ‘You, America, should be doing stuff.’ He will say, ‘Internationally I think it is important we make progress on this and we need to be more ambitious.’ Or he might express concern about some of the impacts of climate change on global weather and all these extreme weather events.”  However he approaches it, 2019 showed how tough it is to move the dial.  After that conversation, Trump told broadcaster Piers Morgan that he thought Charles’ views were “great” and that he had “totally listened to him.” But then he demonstrated that — on the crucial points of how fossil fuels, carbon emissions and climate change are affecting the planet — he totally hadn’t.    “He wants to make sure future generations have climate that is good climate, as opposed to a disaster,” Trump said. “And I agree,” he added, before promptly pivoting to an apparent non-sequitur about the U.S. having “crystal clean” water. It was a typically Trumpian obfuscation. Asked about the king’s views during the Turnberry visit, Trump said: “Every time I met with him, he talked about the environment, how important it is. I’m all for it. I think that’s great.”  In nearly the same breath, he ranted about wind energy being “a disaster.”  GOOD LUCK, CHARLIE  “It is difficult, if not impossible, to see [Trump] change his views on climate change, because they’re not informed by his understanding of the science or consequences, but rather by naked politics,” said leading U.S. climate scientist Michael Mann in emailed remarks.   And Trump will come to the meeting prepared, said Martins, the former U.S. Embassy official. “Trump will receive the full briefing on the king’s views on environment. He won’t be going into that blind. He’ll know exactly what the king has said over his career and what his views are on it and how it affects American interests. I don’t anticipate him being surprised by anything the king says.”   He added: “Bashing net zero and President Biden … gets [Trump] political wins.”    To Charles’ long-standing domestic critics, it all highlights the pointlessness of his position.  Donald Trump has even declared his “love” for King Charles III. | Pool Photo by Richard Pohle via Getty Images “He is bound by these constitutional expectations that he does nothing that will upset the apple cart [in U.K./U.S. relations],” said Graham Smith, chief executive of campaign group Republic, which calls for the abolition of the monarchy. “If he was elected, he’d have a lot more freedom to say what he actually wants.”  “Soft power is a highly questionable concept,” added Smith. It’s only useful, he argued, when backed by something Charles lacks and Trump has by the bucket-load: “Hard power.”  And time may be running out for Charles to deploy even soft power in the climate fight.   Trump’s chief U.K. political ally is Nigel Farage, whose anti-net-zero Reform UK currently lead opinion polls. If British voters pick Reform at the next election, Charles’ potential advocacy would be restrained by a government opposed to action on climate change.  So how far will Charles go to seize his moment?  He wrote in Harmony: “If we continue to be deluded by the increasingly irresponsible clamour of sceptical voices that doubt man-made climate change, it will soon be too late to reverse the chaos we have helped to unleash.” He feared “failing in my duty to future generations and to the Earth itself” if he did not speak up.   Skelly, the former speechwriter who co-wrote the book, predicted that Charles would walk a fine diplomatic line — but was “not someone to sit on his hands or to remain silent.”   “He was warning about these things 30 years ago and nobody was listening. … He feels increasingly frustrated that time is running out.   “I’d love to be a fly on the wall — because it will be a fascinating conversation.”
Elections
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The controversial Georgian mine fueling Europe’s new industrial arms race
CHIATURA, Georgia — Giorgi Neparidze, a middle-aged man from near the town of Chiatura in western Georgia, still has marks on his lips from where he sewed his mouth shut during a hunger strike last year. He says Georgian Manganese, a mining company with close links to the government, has wrought environmental devastation around his home and has ignored the rights of its workers. He is seeking compensation.  Europe, which imports Georgia’s manganese, is partly to blame for the black rivers and collapsing houses in Chiatura district, Neparidze says. The former miner-turned-environmental and civil rights activist claims that in one village, Shukruti, toxic dust from the pits is making people unwell. Filthy black water, laced with heavy metals, periodically spurts out of pumps there. Houses are collapsing as the tunnels underneath them cave in.  Manganese, a black metal traditionally used to reinforce steel, is crucial for Europe’s green energy transition as it is used in both wind turbines and electric car batteries. The metal is also vital for military gear like armor and guns. In 2022, the European Union bought 20,000 metric tons of manganese alloys from Georgia — almost 3 percent of its total supply. A year later the bloc added manganese to its list of critical minerals. But Chiaturans say their lives are being ruined so that Western Europeans can breathe cleaner air. “We are sacrificed so that others can have better lives,” Neparidze says. “There are only 40,000 people in Chiatura. They might feel ill or live in bad conditions but they are sacrificed so that millions of Europeans can have a cleaner environment.” Neparidze says cancer rates in the region are unusually high. Doctors at a hospital in Chiatura back up the observation, but no official study has linked the illnesses to the mines. An aerial view of Chiatura with the polluted Kvirila River running through the town | Olivia Acland Hope that things will improve appears dim. European companies often don’t know where their manganese is sourced from. As ANEV, Italy’s wind energy association, confirms: “There is no specific obligation to trace all metals used in steel production.”  Last year the EU enacted a law that was meant to change that. The Corporate Sustainability Due Diligence Directive obliges companies to run closer checks on their supply chains and clamp down on any human rights violations, poor working conditions and environmental damage.  But barely a year after it took effect, the European Commission proposed a major weakening of the law in a move to reduce red tape for the bloc’s sluggish industry. EU member countries, motivated by this deregulation agenda, are now pushing for even deeper cuts, while French President Emmanuel Macron and German Chancellor Friedrich Merz want to get rid of the law altogether.  Meanwhile, Europe’s appetite for mined raw materials like manganese, lithium, rare earths, copper and nickel is expected to skyrocket to meet the needs of the clean energy transition and rearmament. Many of these resources are in poorly regulated and often politically repressive jurisdictions, from the Democratic Republic of Congo to Indonesia and Georgia. Weakening the EU supply chain law will have consequences for communities like Neparidze’s. “Only an empty shell of the directive remains,” says Anna Cavazzini, a member of the European Parliament’s Green Party, adding that the legislature caved to pressure from businesses seeking to reduce their costs. “Now is not the time to abandon the defense of human rights and give corporations a free hand,” she says.  A resident of Chiatura standing on a collapsed house following a mining-related landslide in Itkhvisi village. | Olivia Acland As Georgia’s government pivots toward Russia and stifles dissent, life is becoming increasingly dangerous for activists in Chiatura. On April 29, four activists including Neparidze were arrested for allegedly assaulting a mine executive. A statement put out by Chiatura Management Company, the firm in charge of staffing Georgian Manganese’s underground operations, says that Tengiz Koberidze, manager of the Shukruti mine, was “verbally abused and pelted with stones.” Supporters call it a staged provocation in which Koberidze tried to incite violence, and say it’s part of a broader campaign to silence resistance. If convicted they face up to six years behind bars. Koberidze did not respond to requests for comment. Chiatura residents are protesting over two overlapping issues. On one side, miners are demanding safer working conditions underground, where tunnel collapses have long been a risk, along with higher wages and paid sick leave. When the mine was temporarily shut in October 2024, they were promised 60 percent of their salaries, but many say those payments never materialized. Workers are also raising concerns about mining pollution in the region. “The company doesn’t raise wages, doesn’t improve safety, and continues to destroy the natural environment. Its profits come not just from extracting resources, but from exploiting both workers and the land,” says one miner, David Chinchaladze. Georgian Manganese did not respond to interview requests or written questions. Officials at Georgia’s Ministry of Mines and the government’s Environment Protection and Natural Resources Department did not respond to requests for comment. A collapsing building in Shukruti. | Olivia Acland.  The second group of protesters comes from the village of Shukruti, which sits directly above the mining tunnels. Their homes are cracking and sinking into the ground. In 2020, Georgian Manganese pledged to pay between 700,000 and 1 million Georgian lari ($252,000 to $360,000) annually in damages — a sum that was meant to be distributed among residents. But while the company insists the money has been paid, locals — backed by watchdog NGO Social Justice — say otherwise. According to them, fewer than 5 percent of Shukruti’s residents have received any compensation.  Their protest has intensified in the last year, with workers now blocking the roads and Shukruti residents barring entry to the mines. But the risks are intensifying too. Since suspending EU accession talks last year amid deteriorating relations with the bloc, Georgia’s ruling party has shuttered independent media, arrested protestors and amplified propaganda. The country’s democracy is “backsliding,” says Irakli Kavtaradze, head of the foreign department of the largest opposition political party, United National Movement. Their tactics “sound like they come from a playbook that is written in the Kremlin,” he adds. ‘KREMLIN PLAYBOOK’ In the capital Tbilisi, around 200 kilometers east of Chiatura, protesters have taken to the streets every night since April 2, 2024 when the government unveiled a Kremlin-style “foreign agents” law aimed at muzzling civil society.  Many demonstrators wear sunglasses, scarfs and masks to shield their identities from street cameras, wary of state retaliation.  A scene from the 336th day of protests in Tbilisi in April 2025. | Olivia Acland. Their protests swelled in October last year after the government announced it would suspend talks to join the EU. For Georgians, the stakes are high: Russia already occupies 20 percent of the country after its 2008 invasion, and people fear that a more profound drift from the EU could open the door to further aggression. When POLITICO visited in April, a crowd strode down Rustaveli Avenue, the city’s main artery. Some carried EU flags while others passed around a loudspeaker, taking it in turns to voice defiant chants. “Fire to the oligarchy!” one young woman yelled, the crowd echoing her call. “Power lies in unity with the EU!” another shouted. They also called out support for protestors in Chiatura, whose fight has become something of a cause célèbre across the country: “Solidarity to Chiatura! Natural resources belong to the people!”  The fight in Chiatura is a microcosm of the country’s broader struggle: The activists are not just taking on a mining company but a corporate giant backed by oligarchs and the ruling elites.  Georgian Manganese’s parent company, Georgian American Alloys, is registered in Luxembourg and counts Ukrainian oligarch Ihor Kolomoisky as a shareholder. He is in custody in Kyiv over allegations that he hired a gang to kill a lawyer who threatened his business interests in 2003. Kolomoisky has also been sanctioned by the United States for his alleged involvement in siphoning billions out of PrivatBank, Ukraine’s largest bank.  Giorgi Kapanadze — a businessman closely connected with the ruling Georgian Dream party of Bidzina Ivanishvili — is listed as general manager of Georgian American Alloys.  Until recently, Kapanadze owned Rustavi TV, a channel notorious for airing pro-government propaganda. The European Parliament has called on the EU to hit Kapanadze with sanctions, accusing him of propping up the country’s repressive regime. Kolomoisky and Kapanadze did not respond to POLITICO’s requests for comment. The government swooped in to help Georgian Manganese in 2016 when a Georgian court fined it $82 million for environmental destruction in the region. The state placed it under “special management” and wrote off the fine. A new government-appointed manager was tasked, on paper, with cleaning up the mess. He was supposed to oversee a cleanup of the rivers that flow past the mines, among other promises. Manganese mining pit in Chiatura region, Georgia. | Olivia Acland But POLITICO’s own tests based on four samples taken in April 2025 from the Kvirila River, which runs through Chiatura, as well as its tributary, the Bogiristiskali, which were examined in a U.K. licensed laboratory, show the manganese levels in both rivers are over 10 times the legal limit. Iron levels are also higher than legally permitted. Locals use the polluted water to irrigate their crops. Fishermen are also pulling in increasingly empty nets as the heavy metals kill off aquatic life, according to local testimonies. The water from the Kvirila River flows out into the Black Sea, home to endangered dolphins, sturgeons, turtles and sharks.  A 2022 analysis by the Georgian NGO Green Policy found even worse results, with manganese in the Kvirila River averaging 42 times the legal limit. The group also detected excessive levels of iron and lead. Chronic manganese exposure can lead to irreversible neurological damage — a Parkinson’s-like condition known as manganism — as well as liver, kidney and reproductive harm. Lead and iron are linked to organ failure, cancer and cardiovascular disease. On Georgian Manganese’s website, the company concedes that “pollution of the Kvirila River” is one of the region’s “ecological challenges,” attributing it to runoff from manganese processing. It claims to have installed German-standard purification filters and claims that “neither polluted nor purified water” currently enters the river. Protesters like Neparidze aren’t convinced. They claim the filtration system is turned on only when inspectors arrive and that for the rest of the time, untreated wastewater is dumped straight into the rivers. BLOCKING EXPORTS Their protests having reaped few results, Chiaturans are taking increasingly extreme measures to make their voices heard.  Gocha Kupatadze, a retired 67-year-old miner, spends his nights in a tarpaulin shelter beside an underground mine, where he complains that rats crawl over him. “This black gold became the black plague for us,” he says. “We have no choice but to protest.” Kupatadze’s job is to ensure that manganese does not leave the mine. Alongside other protesters he has padlocked the gate to the generator that powers the mine’s ventilation system, making it impossible for anyone to work there. Kupatadze says he is only resorting to such drastic measures because conditions in his village, Shukruti, have become unlivable. His family home, built in 1958, is now crumbling, with cracks in the walls as the ground beneath it collapses from years of mining. The vines that once sustained his family’s wine-making traditions have long since withered and died. Gocha Kupatadze, an activist sleeping in a tarpaulin tent outside a mine. | Olivia Acland. For over a year, protesters across the region have intermittently blocked mine entrances as well as main roads, determined to stop the valuable ore from leaving Chiatura. In some ways it has worked: Seven months ago, Chiatura Management Company, the firm in charge of staffing Georgian Manganese’s underground operations, announced it would pause production.  “Due to the financial crisis that arose from the radical protests by the people of Shukruti village, the production process in Chiatura has been completely halted,” it read. Yet to the people of Chiatura, this feels more like a punishment than a triumph.  Manganese has been extracted from the area since 1879 and many residents rely on the mines for their livelihoods. The region bears all the hallmarks of a mining town that thrived during the Soviet Union when conditions in the mines were much better, according to residents. Today, rusted cable cars sway above concrete buildings that house washing stations and aging machinery.   While locals had sought compensation for the damage to their homes, they now just find themselves out of work.  Soviet-era buildings and mining infrastructure around Chiatura. | Olivia Acland.  Making matters worse, Georgian Manganese, licensed to mine 16,430 hectares until 2046, is now sourcing much of its ore from open pits instead of underground mines. These are more dangerous to the communities around them: Machines rip open the hillsides to expose shallow craters, while families living next to the pits say toxic dust drifts off them into their gardens and houses.  MORE PITS The village of Zodi is perched on a plateau surrounded by gently undulating hills, 10 kilometers from Chiatura. Many of its residents rely on farming, and cows roam across its open fields. “It is a beautiful village with a unique microclimate which is great for wine-making,” says Kote Abdushelishvili, a 36-year-old filmmaker from Zodi.  Mining officials say the village sits on manganese reserves. In 2023, caterpillar trucks rolled into Zodi and began ripping up the earth. Villagers, including Abdushelishvili, chased them out. “We stopped them,” he says, “We said if you want to go on, you will have to kill us first.” A padlocked gate to the mine’s ventilation system. | Olivia Acland Abdushelishvili later went to Georgian Manganese’s Chiatura office to demand a meeting with the state-appointed special manager. When he was turned away, he shouted up to the window: “You can attack us, you can kill us, we will not stop.” Two days later, as Abdushelishvili strolled through a quiet neighborhood in Tbilisi, masked men jumped out of a car, slammed him to the pavement and beat him up. Despite the fierce resistance in Chiatura, Georgian Manganese continues to send its metal to European markets. In the first two months of 2025, the EU imported 6,000 metric tons of manganese from Georgia. With the bloc facing mounting pressures — from the climate crisis to new defense demands — its hunger for manganese is set to grow. As the EU weakens its corporate accountability demands and Georgia drifts further into authoritarianism, the voices of Chiatura’s people are growing even fainter.  “We are not asking for something unreasonable,” says activist Tengiz Gvelesiani, who was recently detained in Chiatura along with Neparidze, “We are asking for healthy lives, a good working environment and fresh air.” Georgian Manganese did not respond to requests for comment. This article was developed with the support of Journalismfund Europe.
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In Trump’s war on clean energy, China (and everyone else) wins
WASHINGTON — Donald Trump wants to beat China in just about every market — but he’d rather take the loss on clean energy. In his second term, the U.S. president has returned more committed than ever to promoting fossil fuels and crushing clean, renewable power sources that don’t burn the planet. Trump’s view is that China has already won the clean energy race, due in part to practices such as forced labor, massive subsidies and intellectual property theft. Trying to compete with Beijing would just make the United States the loser. The president wants the U.S. to focus on energy sources it already dominates, including oil, natural gas and coal. That represents a complete break from Trump’s predecessor, Joe Biden, who sought to go toe-to-toe with China in a race for clean energy dominance. Not only that, it contrasts with Trump’s first term, when the White House took an all-you-can-eat-buffet approach to energy and clean power.  The new stance could present America’s competitors with a multibillion-dollar opportunity. And in Washington, it’s opening up a fundamental divide within Trump’s Republican Party as it works through spending talks. “The second administration is really not about taking half-measures,” said Daniel Simmons, who ran the Energy Department’s energy efficiency and renewable energy office in Trump’s first term. “To all appearances, it is not a battlefield that they care about.” GOP FISSURES Not all Republicans are ready to let China, Europe and other nations win the clean energy race by default.  That intra-GOP division is boiling underneath one of the biggest political controversies in Washington right now: the complicated passage of Trump’s “big, beautiful” tax and spending megabill. Hard-line conservatives are demanding that the bill include a wholesale gutting of hundreds of billions of dollars in Biden-era clean energy tax incentives, which were aimed at juicing U.S. competitors to Chinese and European manufacturers.  That push threatens to alienate moderate Republicans whose communities stand to gain from factories and other projects enabled by the tax breaks — and who had hoped they could win Trump to their side by framing the incentives as the key to edging out China. The message they’ve gotten instead: When it comes to winning on clean energy, Trump just isn’t interested. Trump’s Energy Department confirmed as much in a statement to POLITICO that focused largely on oil — an energy source that the U.S. produces more of than any other country. Trump officials have argued that putting any money into green technology boosts China, which dominates major slices of the global battery, electric vehicle, solar and wind energy supply chains. | Olivier Matthys/EFE via EPA “Thanks to President Trump, America is leading the way in lowering costs by removing red tape and unleashing affordable, abundant, and reliable American energy,” the department said Friday. “As the world’s largest oil producer, the United States welcomes a secure and stable global supply of oil that promotes economic prosperity at home and promotes peace and stability around the world.” The White House referred questions about its clean energy worldview to the Energy Department. DRILLING TO BEAT CHINA? Trump officials have argued that putting any money into green technology boosts China, which dominates major slices of the global battery, electric vehicle, solar and wind energy supply chains.  Trump’s zero-sum assessment of the clean energy market has forged an energy strategy even more reliant on fossil fuels than he pursued in his first term. Following this approach would jeopardize a U.S. clean energy manufacturing industry that is just beginning to sprout — and, green tech advocates say, all but ensure that China will command the global sector. That vision is coming to a head in Congress, where Republicans are working to slash the clean energy incentives created by Biden’s Inflation Reduction Act. While not proposing to erase the tax breaks altogether, GOP lawmakers in the House have floated tight restrictions outlawing Chinese sourcing in the supply chains of energy projects. Those limits would render most of the tax credits unusable for projects that have not yet been built, effectively squelching the nascent U.S. clean manufacturing sector. The changes remain in limbo as part of the broader budget reconciliation bill, the legislative vehicle for green-lighting Republicans’ and Trump’s policy agenda that can pass with a simple majority vote in Congress. House Republicans are trying to forge a compromise among fiscal conservatives and blocs of GOP lawmakers that want to preserve clean energy credits and raise tax deduction caps for state and local taxes.    Trump’s presence looms over the negotiations. He has repeatedly vowed to end Biden’s programs — the nation’s largest-ever investment in clean energy and fighting climate change — while labeling them the “green new scam.” Cutting many of those policies, such as consumer credits to purchase electric vehicles, would fund a small portion of his administration’s other priorities, including trillions of dollars in tax breaks. “They don’t see climate change as a problem,” George David Banks, who ran Trump’s first-term climate portfolio, said of the current team’s outlook. He added: “They don’t want to essentially create a jobs program for China.” Defenders of the IRA tax credits say wiping them out would wipe out an American jobs program, one whose benefits would flow to heavily Republican communities as well as Democratic strongholds. Private sector manufacturing projects seizing on Biden’s incentives had been projected to create roughly 160,000 jobs, according to analyses published late last year. Overturning the subsidies would eliminate a potential U.S. export market for solar modules and batteries that could be worth as much as $50 billion by 2030, according to another analysis by researchers at Johns Hopkins University. Other countries would fill an $80 billion investment gap left by shuttered U.S. solar facilities, electric vehicle shops and battery gigafactories.  Many countries stand to benefit from the U.S. vacating the space, the Johns Hopkins researchers wrote. But governments outside the U.S. would face risks as well: Those that fail to encourage cleantech investments at home may fall even further behind China, which would likely benefit in every industrial category.  The researchers also raised the prospect of a transition of intellectual property to China. As U.S. businesses shuttered, they said, foreign companies could purchase their technical knowledge at fire-sale prices. Donald Trump’s barrage of tariffs against nations worldwide would limit some of the advantage countries could gain by selling clean technology to the U.S., said Tim Sahay, one of the authors of the study. | Jim Lo Scalzo/EFE via EPA Trump’s barrage of tariffs against nations worldwide would limit some of the advantage countries could gain by selling clean technology to the U.S., said Tim Sahay, one of the authors of the study. Still, he said, the upshot from Trump’s policies was clear — including for European allies that had erupted in fury over Biden’s use of protectionist tax breaks to move clean energy manufacturing to the United States.  “China would be the biggest winner, but not the only winner … The rest of the world wins,” Sahay said. It’s “basically the IRA in reverse. When the IRA passed, foreigners were like, ‘Oh my God, Americans are stealing our jobs and investments because of their superior fiscal space.’ Well, now the IRA is gone, then foreigners are like, ‘Well, more for us.’” Some conservative clean energy supporters still hope they can persuade Trump to back tax credits that have yielded solar manufacturing and battery-making plants across Republican strongholds in the Sun Belt and Rust Belt.  Those advocates criticized the IRA for being too lenient in allowing Chinese content into the supply chains of products receiving the tax incentives. But they believe Trump would bless tweaks that tighten foreign content requirements to retain incentives that support blue-collar jobs in the U.S. “There’s an enormous and rapidly growing market for low-carbon technologies around the world, and right now the U.S. is a secondary player,” said Greg Bertelsen, CEO of the Cleaner Economy Coalition, a business advocacy organization that promotes low-carbon manufacturing at the state and federal level. “There’s a recognition within the Trump administration that we need to be competing in these markets for these technologies.” TRUMPISM ON THE ROAD Trump officials have been making a very different case. Last month, Energy Secretary Chris Wright flew to Eastern Europe to propose that ministers from Poland, Bulgaria, Hungary and other regional governments join “Team Energy Freedom,” urging them to embrace oil, gas and nuclear energy and reject what he framed as climate dogma.  “Climate alarmism has reduced freedom, prosperity and national security,” he said, adding — in language that carried a particular charge addressed to former communist bloc countries — that it may be a Trojan horse to “grow centralization and re-establish top-down control.” Wright’s subordinate, Tommy Joyce, was even more blunt in telling a gathering of 60 governments in London last month that the pursuit of climate policy was a gift to Beijing. “There are no wind turbines without concessions to or coercion from China,” he said. People outside the MAGA world also acknowledge the dominance China has built over decades of developing its clean energy supply chains.  In solar, batteries, electric vehicles and to some extent wind power, “China started early. China is the biggest,” said Li Shuo, director of the China Climate Hub at the Asia Society Policy Institute. In solar, batteries, electric vehicles and to some extent wind power, “China started early. China is the biggest,” said Li Shuo, director of the China Climate Hub at the Asia Society Policy Institute. | Wu Hao/EFE via EPA These are the core clean technologies the world is going to need en masse in the coming decades as it shifts toward a cleaner energy system. And in all of these fields, Li said, “the Chinese lead is significant and irreversible.”  In the past months, for example, two rival Chinese companies — BYD and CATL — made potentially game-changing claims in announcing they had developed electric vehicle batteries that could get 400 or even 500 kilometers (roughly 250 to 310 miles) from just a five-minute charge. By contrast, Tesla boasts that its “superchargers” can give drivers around 320 kilometers in about 15 minutes.  Republican proposals would also hamstring some clean energy technologies that the Trump administration has touted, such as next-generation nuclear, fusion and geothermal power, according to an analysis by the research firm Rhodium Group. The proposed tweaks to subsidies would essentially eliminate the long-term price signals that early-stage technologies covet, eroding their business case. Beyond that, the administration’s massive spending and job cuts across federal agencies and science research threaten to constrain U.S. innovation.  Rather than focusing on clean energy technologies such as batteries and EVs, the Trump administration has so far made critical minerals the forefront of its strategy to combat China, said a State Department official who was granted anonymity because they were not authorized to speak with the media. Those efforts focus on extracting and processing raw materials rather than supporting value-added industries like battery-making or electric vehicles.  The official said the administration’s opposition to subsidies for green technology doesn’t mean it opposes the technologies writ large — apart from wind energy, which Trump has made clear for years that he despises. AMERICA ALONE Apart from the current U.S. government, no other major power has determined that China’s dominance means that action to fight climate change needs to take a back seat. The Biden administration’s argument, one still being pursued in Europe, was that a targeted industrial strategy could claw back some share of those industries. Those strategies have often come cloaked in pledges to make this country or that country a “clean energy superpower.” But Li said there was a danger of “making too big of a promise. A promise that cannot be entirely fulfilled.”  Li said he had long feared that a U.S. president would someday ask: If China’s lead is so big, “then why do we play the game?” That is the conclusion being drawn in the White House during Trump’s second term. And it helps explain why the administration has broken so radically with past U.S. policy, shut down government funding for future projects, kneecapped agencies that deal with clean energy, and reversed regulations. “What has surprised me is the extent to which the administration hasn’t just pursued an agenda but has thrown sand in the gears of the parts of the agenda that they don’t agree with,” said Thom Woodroofe, a former Australian diplomat in Washington who now works at the Smart Energy Council. “Even when it costs American jobs.” Zack Colman reported from Washington and Karl Mathiesen reported from London.
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China could blackmail Germany via wind turbines, report warns
BRUSSELS — Germany’s political system and social cohesion are at stake unless it restricts Chinese wind turbines in the country, a government-backed analysis seen by POLITICO warns. The report, which the German defense ministry commissioned, argues Beijing could purposefully delay projects, harvest sensitive data and remotely shut down turbines if given access to wind farms. It also advises the country to stop an existing wind project using Chinese turbines from going ahead. “When using systems or components from Chinese manufacturers … given the political situation, it can even be assumed that such a slowdown or even disruption would be deliberately used by China as a means of political pressure or even as an instrument of economic warfare,” reads the report, prepared last month by the German Institute for Defense and Strategic Studies think tank.  “A destabilization of both the political system, the business model of German industry and social cohesion cannot therefore be ruled out due to a lack of or insufficient planning security in the energy sector,” it adds. The analysis comes amid growing concerns related to critical infrastructure risks in Europe. Since 2022, at least six separate incidents of suspected underwater sabotage have taken place in the Baltic Sea.  Meanwhile, Brussels has begun cracking down on Chinese wind suppliers after suspecting them of receiving state subsidies to beat out European competitors for European Union projects. Last year, the European Commission, the EU’s executive, opened a probe into Beijing-linked wind projects in Bulgaria, France, Greece, Romania and Spain. Now those risks are likely to increase if ties worsen with Beijing, according to Andrea Scassola, vice president of wind research at the Rystad consultancy.  “What we are seeing … is intensifying great power rivalry, and at a time when our world is more interconnected than it has ever been — it’s a magnifier of vulnerability and risks,” he said. Overdependence on China also raises the risk of cyberattacks that could “lead to a shutdown of production,” Scassola said, adding that similar public warnings or legal moves to restrict Beijing’s access have already taken place in the Netherlands, the United Kingdom, Poland and Lithuania. The report makes similar warnings. If relations sour with China, Beijing could delay the operation of new farms by “at least four to five years” between the planning approval and commissioning stages, the analysis reads, and could coordinate other disruptive efforts with Russia.  Part of the danger also comes from the access that manufacturers get to turbines, according to the study. Beijing’s suppliers would have access to computer programs that control active turbines and collect data from hundreds of radars built into farms, it states — a significant issue given that wind produced a third of Germany’s electricity last year and a fifth of the EU’s power. In sum, the report argues, that would hand China “considerable blackmail potential in the future.” Germany’s defense ministry and the German Institute for Defense and Strategic Studies declined to comment on the report.  PUBLIC SAFETY ISSUE Despite the warnings, Germany has already begun eyeing Chinese firms as potential suppliers.  Last year, project developer Luxcara announced it had selected Beijing’s Ming Yang Smart Energy to supply 16 turbines for its “Waterkant” offshore wind farm in northwest Germany.  The report warns that the “first time use of Chinese wind turbines must be prevented” on “public safety” grounds, since it risks creating a reliance on Beijing’s expertise and giving it access to “essential elements of German critical infrastructure” near militarily relevant training areas. That’s not the first time the Chinese manufacturing giant’s overtures to Europe have come under scrutiny. Ming Yang supplied 10 turbines for an offshore wind farm in southern Italy that was completed in 2022; Britain’s investment minister also met with the company in December to discuss its business prospects in the U.K., POLITICO revealed last week. Germany’s wind industry is wary of the Waterkant project, too. Local turbine makers see projects with Beijing’s products as a “massive risk,” said Karina Würtz, managing director of the German Offshore Wind Energy Foundation, while acknowledging that projects like Waterkant face “threats to [their] commercial viability” if Chinese suppliers withdraw. Berlin must now “investigate into that risk, honestly and in-depth,” she said, and push ahead with enforcing EU laws like the 2023 NIS2 directive, which includes measures to mitigate cybersecurity threats, as soon as a new government is formed after the Feb. 23 election. The report, meanwhile, suggests that Berlin explore legal tools like its national procurement law and Wind Energy at Sea Act to exclude Chinese firms from contracts on defense or public safety grounds.  Ming Yang did not respond to questions sent by POLITICO. Luxcara declined to comment.
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Poland’s role in shaping Europe’s energy transition and competitiveness
On Dec. 9th, the Polish Electricity Association (PKEE) organized the PKEE Energy Day 2024 event in Brussels, which brought together energy sector leaders, EU officials and policymakers to discuss Europe’s energy transformation. With energy security, the transition and economic competitiveness as central themes, the event highlighted Poland’s upcoming presidency of the Council of the European Union and its role in addressing energy challenges during a pivotal time for Europe. Poland’s presidency comes amid the ongoing war in Ukraine, ambitious EU climate targets, and the need to secure affordable energy. Polish officials outlined priorities focusing on energy security, industrial competitiveness, and advancing the EU’s clean and just energy transition. Dariusz Marzec, president of PKEE and CEO of PGE, emphasized the moment’s significance — stating that the energy transformation is not only about achieving climate goals, but also ensuring a competitive economy and benefits for citizens. Marzec highlighted investments in offshore wind farms, grid modernization and energy storage as critical pillars for strengthening energy security in Poland. > Polish officials outlined priorities focusing on energy security, industrial > competitiveness, and advancing the EU’s clean and just energy transition. Poland’s energy policy legacy So far, and despite its decarbonization challenges, Poland has proactively shaped EU energy policy. Notably, Prime Minister Donald Tusk proposed the “Energy Union” in 2014 to strengthen energy security, reduce reliance on Russian energy and promote joint gas purchases. These ideas influenced the 2022 REPowerEU Plan. Poland also contributed to establishing financial mechanisms supporting the energy transition, such as the EU’s Modernization Fund and the Just Transition Fund, aiding coal-dependent regions. Collaboration with the European Commission has helped fund key energy infrastructure, including interconnectors across Central and Eastern Europe (CEE). Currently, Poland is advancing offshore wind projects, positioning itself as a regional leader alongside Baltic states. These initiatives integrate supply chains, foster innovation, and promote cooperation. via PKEE Ensuring energy security during crisis During PKEE Energy Day 2024, Paulina Hennig-Kloska, Poland’s minister of climate and environment, stressed that Poland’s presidency will prioritize energy security while pursuing climate objectives. She emphasized investments in renewable energy, energy storage technologies and grid modernization. A top priority for Poland’s presidency will be delivering the REPowerEU goal to phase out the EU’s reliance on Russian fossil fuels. It would be worthwhile for this phase out to be permanent and integrated into the EU’s climate and energy security policies. Lessons learned from Russia’s war in Ukraine must drive long-term resilience and independence in Europe’s energy systems. Ditte Juul Jorgensen, director-general for energy at the European Commission, underscored the importance of collaboration: “The Polish presidency will play a key role in safeguarding energy security while ensuring a fair transition for all EU member states.” Nicola Pochettino from the European Investment Bank stressed the need to reduce energy costs while supporting climate goals, indicating that a just transition must benefit all citizens and regions. A competitive industrial strategy Europe’s energy sector plays a vital role in decarbonizing industry, promoting electrification and ensuring competitive energy prices. However, challenges remain. High energy costs continue to hinder European businesses, with electricity prices in 2023 still 80% higher than in the US and 55% higher than in China. These disparities threaten the EU’s industrial competitiveness. Poland’s presidency aims to strengthen European industry’s competitiveness, supported by proposals like the Clean Industrial Deal, which seeks to lower energy costs and support clean energy. Marzena Czarnecka, Poland’s minister of industry, stressed the importance of competitiveness on Poland’s agenda. Jakub Jaworowski, minister of state assets, echoed this, noting that the energy transition must deliver low-cost, clean energy and competitive prices for the industry. > High energy costs continue to hinder European businesses, with electricity > prices in 2023 still 80% higher than in the US and 55% higher than in China. Industry leaders emphasized the need for clear regulations and financial mechanisms to drive investments. Walburga Hemetsberger, CEO of SolarPower Europe, called for grid modernization to accommodate renewables, while Giles Dickson, CEO of WindEurope, advocated for supporting European wind energy manufacturing to compete globally. Addressing structural challenges Energy experts highlighted the need to address systemic challenges in Europe’s energy system. Fatih Birol, executive director of the International Energy Agency, pointed to historical missteps, such as reliance on Russian gas, the retreat from nuclear power and underinvestment in solar PV manufacturing. Birol expressed optimism, stating that the EU must focus on retaining its industrial base and preparing for growth powered by clean technologies. Modernizing Europe’s energy grids is critical to prevent them from hindering economic growth. Roman Szyszko, vice-president of the management board of ENERGA SA and member of the management board of PKEE, emphasized that grid investments, which could reach €425 billion by 2030, are essential to accelerate the transition. Energy storage: A pillar of resilience At the same time, energy storage technologies are key to stabilizing grids as renewable energy expands. Grzegorz Onichimowski, president of PSE, highlighted the need for large-scale storage solutions beyond small prosumer batteries, citing power-to-heat technologies and gas-fired plants as additional supports for grid stability. Grzegorz Lot, CEO of TAURON and vice-president of the management board of PKEE, underscored the importance of energy storage, sharing plans for a 700 MW pumped-storage plant and stressing the need for clear legislative frameworks to attract investments. Bruce Douglas, president of the Global Renewables Alliance, emphasized long-term storage solutions, while Guillermo Antonio Rios Pavia of Aurora Energy Research highlighted how battery storage can enhance flexibility. via PKEE A just transition focused on citizens Participants agreed that the energy transition must prioritize affordability and inclusivity. Grzegorz Kinelski, CEO of ENEA and vice-president of the management board of PKEE, noted the importance of a diverse energy mix combining renewables and gas alongside energy storage. Mechanisms such as capacity markets and contracts for difference are essential to ensure a smooth and just transition. Building a unified energy vision Poland’s contributions, including the Energy Union and the Just Transition Fund, demonstrate how national initiatives can become EU-wide successes. By fostering cooperation and advocating for shared benefits, Poland aims to advance Europe’s energy goals during its presidency. As Europe faces significant energy challenges, the CEE region’s role will be vital in building a competitive and resilient region. Finalizing the REPowerEU goal, modernizing infrastructure and strengthening industrial competitiveness will be central to Poland’s efforts. Through collaboration with EU institutions and member states, Poland seeks to secure affordable energy, drive innovation and deliver on climate objectives, ensuring Europe’s energy future remains sustainable and competitive.
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UK budget: 5 things you need to know as Labour hikes taxes
LONDON — Rachel Reeves just delivered the first Labour budget since 2010 — and set Britain out on a markedly different course. With taxes and borrowing hiked, and big cash boosts promised for schools and the health service, the leftward economic shift under Britain’s newly elected Labour government was arguably even more pronounced than many were expecting pre-budget. Here are five things you need to know. 1) BRITAIN’S TAX BURDEN IS AT RECORD LEVELS Reeves’ budget hiked taxes by £40 billion a year. The litany of tax rises, mostly targeting businesses and high-wealth Brits, will take the U.K’s tax burden to more than 39 percent of gross domestic product by 2029 — its highest post-war share of the economy. That’s far above what Prime Minister Keir Starmer promised during the election campaign, after repeatedly saying no tax rises were needed above what was outlined in Labour’s manifesto. The government is arguing that its fiscal inheritance was far worse than it expected and that extra cash is needed to prop up Britain’s struggling public services. The bulk of the tax hikes come from an increase in national insurance contributions for employers, with an offset for Britain’s smallest businesses providing some relief for small and medium-sized firms. There are also increases to capital gains tax for shareholders, stamp duty on second homes, passenger duty on private jets and the imposition of VAT on private schools. 2) NHS AND SCHOOLS WINS BIG Reeves said the tax hikes were necessary to stop a second round of austerity, with Britain’s creaking health service the biggest winner. The NHS’s day-to-day budget will increase by £22 billion next year, in the biggest real-terms increase for the health service since 2010 (the Covid-19 years not included.) The health service will also get billions of pounds of extra capital investment, along with a host of promised reforms, in a bid to cut back the NHS waiting list which sits at nearly 8 million. It shows just how politically important an improvement in the NHS is for this government. Polling consistently showed it was the top issue for voters in the July election. Many in Labour believe that they will only win a second term in 2029 by drastically improving NHS outcomes. Keir Starmer and Rachel Reeves will argue this kind of change is necessary to mend Britain’s public services and fundamentally reorient the British state. | Pool Photo by Hollie Adams via Getty Images The education department also got a large uptick in spending. It’s bagging a 20 percent increase in capital spending, earmarked for building and improving schools. 3) GROWTH STILL ANAEMIC Despite the tidal wave of fiscal policy changes announced today, the Office for Budget Responsibility (OBR) expects U.K. economic growth to remain anaemic. In fact, the budgetary watchdog reckons economic growth will be slower than previously expected after this budget by the end of the decade. After a two year uptick, growth is expected to be lower in 2026-2029 than under the previous Tory government. The OBR also reckons today’s increase in taxes, spending and borrowing will also increase inflation and bond yields over the term of this parliament. In other words — the OBR reckons Reeves’ decisions will mean higher mortgage rates and government borrowing costs. 4) LABOUR BETS BIG ON INFRASTRUCTURE Reeves is betting big that her budget will sow the seeds for long-term economic growth by clearing up space for tens of billions in extra infrastructure spending. Her decision to change the government’s fiscal rules, by adjusting how debt is measured, will now allow the government to borrow far more to invest in infrastructure over the next five years. Reeves is hoping this extra investment will help drive up supply and economic growth in the U.K. economy, while also powering the green transition. The money will be spent on green energy projects, on things like carbon capture and wind energy, and new transport infrastructure. The government is banking on this extra investment spending crowding in even more private industry spending in these areas through what is known as a multiplier effect. 5) THIS IS NOT TONY BLAIR’S NEW LABOUR This was a budget that hit high earners and businesses in a way which Labour election-winner Tony Blair would never have dreamed of — especially just after winning office. Reeves created clear winners and losers by hiking taxes on businesses, high-worth individuals and private schools to increase spending on public services. The NHS’s day-to-day budget will increase by £22 billion next year. | Adrian Dennis/Getty Images It is an explicitly worker-oriented economic policy which has seen Labour draw dividing lines in a way the party shied away from under Blair. Starmer and Reeves will argue this kind of change is necessary to mend Britain’s public services and fundamentally reorient the British state. But they will surely only have the political space to do this type of tax-hiking budget just once during their five-year term in government.
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