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Lisa Friedman and Brad Plumer, The New York Times
US Republicans on the Senate finance committee have released draft legislation that would “quickly end” the majority of tax breaks for wind and solar power, electric vehicles and other clean energy across the nation, the New York Times reports. Among the measures to wind down federal tax credits is a proposal that wind and solar companies could fully qualify for existing tax credits if they begin construction in the next six months, but would only get 60% if they begin in 2026 and then 20% in 2027, the newspaper explains. The article says: “That’s a slightly longer runway for renewable energy than is in the House [of Representatives] version of the bill, which would have ended those tax breaks almost immediately.” However, it says the phaseout is faster than clean-energy supporters had hoped for, adding that analysts warn that pulling support for renewables could mean more expensive electricity in the near future. Under the House proposal, renewable energy projects would have had to not just begin construction but actually start generating electricity by the end of 2028 in order to qualify for the credits, the Hill explains. Nevertheless, the outlet says the changes would still mark a “major rollback” of the tax credits passed by Democrats in the landmark 2022 Inflation Reduction Act, which would have lasted until 2032 or when US power sector emissions had dropped by 25%. With the new bill proposing that most tax credits are eliminated by 2028, Reuters says shares of US solar energy companies “tumbled” following its announcement. Meanwhile, PV Magazine reports on new analysis from financial firm Lazard that finds even unsubsidised wind and solar remains the cheapest source of electricity in the US, “despite persistent low natural gas prices”.
Bloomberg explains that the legislation is part of US president Donald Trump’s “multi-trillion dollar signature economic package”. While there are “modest changes” compared to the House version, the news outlet says the Senate’s proposals have “dash[ed] hopes of those seeking relief from major cuts passed by the House”. In its analysis, Heatmap News says Senate Republicans have “widened the aperture slightly” compared to the previous version by extending tax credits for geothermal energy, batteries and hydropower. It continues: “Wind and solar are out. Clean, firm power is in.” In fact, Axios notes that the text “lengthens the phaseout period for the electricity investment and production tax credits for nuclear and geothermal projects that start construction as late as 2035”. The bill also extends a clean fuel tax credit through to 2031, but removes 20% of the credit’s value for biofuels made from feedstocks produced outside of the US, Reuters explains. The Senate’s tax and budget bill would also end a $7,500 tax credit on new electric vehicle sales 180 days after the measure comes into force and immediately end the credit for leased electric vehicles made outside North America, Reuters reports. It adds that the proposal would also end a $4,000 tax credit for second-hand electric vehicles 90 days after the bill's approval.
Kate Abnett , Reuters
The European Commission is set to propose that the EU bans all new Russian gas contracts by the end of 2027 using trade law, in a move to “ensure the plan cannot be blocked by EU members Hungary and Slovakia”, Reuters reports. According to a draft of the proposal, seen by the newswire, imports of pipeline gas and liquified natural gas (LNG) from Russia into the EU would largely be banned from the start of 2026, with longer deadlines for certain contracts. The article explains that around 19% of Europe's gas still comes from Russia, via the TurkStream pipeline and LNG shipments, with Belgium, France, the Netherlands and Spain among those still importing it. The Financial Times explains that, in a concession to Hungary and Slovakia, landlocked countries would be granted an exemption in the proposed ban until 2027. However, the newspaper adds that – responding to concerns that those nations would veto efforts to phase out Russian gas – the commission also proposed using laws that allow the proposals to pass with approval from a majority of member states. Reuters also reports that the commission has confirmed it will “not propose measures to limit the EU's reliance on Russian nuclear fuel this week alongside its proposals to ban Russian gas”. Another Financial Times article reports that Austria has said the EU “must be open to resuming Russian gas imports in the event of a peace deal being brokered to end the war in Ukraine”. The newspaper notes that Austria is “one of few countries in the bloc to openly float such an option”.
In more EU news, the Financial Times reports that the bloc is “considering using an upcoming carbon tax on petrol and home heating to fund the EU budget, risking further controversy over a levy that is unpopular with France and Poland”. The article explains: “[T]]he idea is facing heavy opposition from factions within the commission as well as member states, which fear it would fuel resentment against the EU and play into the hands of climate-sceptical rightwing politicians…[S]everal member states have called for the levy to be delayed or reviewed fearing it will push up heating and fuel bills.”
Meanwhile, the conflict between Israel and Iran continues to have implications for the energy sector, with Israel's Haifa-based Bazan Group reporting that all of its refinery facilities have been shut down following Iranian attacks, Reuters reports. Clyde Russell, Asia commodities and energy columnist at Reuters, says China is building up oil stockpiles “amid Middle East tensions”.
Bloomberg
China’s electricity generation from thermal sources – mainly coal – has increased by 1.2% year-on-year in May 2025, the “first gain” since last November, according to data released by the National Bureau of Statistics (NBS) on Monday, Bloomberg reports. It says that the increase comes as rising temperatures across northern China boosted the use of air conditioners. The outlet adds that output from coal and gas plants in 2025 to date is still down 3.1% from 2024 levels due to “strong generation from wind and solar farms, and more tepid growth [in demand]”. Meanwhile, China’s wind and solar power generation increased by 11.0% and 7.3% year-on-year in May, respectively, with hydropower generation declining by 14.3%, according to the NBS, industry news outlet BJX News reports. Overall, electricity generation in May was up 0.5% year-on-year, the outlet adds.
Elsewhere, state-run newspaper China Daily reports that Chinese president Xi Jinping met with Kazakh president Kassym-Jomart Tokayev on Monday, ahead of the second China-Central Asia Summit. Bloomberg reports that China has “made economic inroads” in recent years into central Asia, home to “vast reserves of uranium and oil, as well as rare earth metals”, expanding investment into areas including energy. The Communist Party-affiliated newspaper People’s Daily carries an article in its print edition, saying that China, with its “strong production capacity in green energy”, has cooperated with central Asian countries, which have “natural advantages for developing clean energy”, to build a series of new projects.
Finally, China Petrochemical News, managed by oil firm Sinopec, publishes an article saying that China’s first national standard for “zero-carbon industrial parks” has entered the “drafting stage” and is expected to be released within the year, adding that the standard will provide guidance for the sector. China’s promotion of electric vehicles (EVs) to rural areas has started, according to the state broadcaster CCTV. Separately, the Hong Kong-based South China Morning Post (SCMP) reports that global warming will make ice jams “more frequent” in the Yellow River’s estuary by the end of this century, bringing destructive floods and damaging “downstream communities, wildlife and infrastructure”, according to a new study.
Wirtschaftswoche
German economy minister Katherina Reiche has taken part in a meeting of the European Nuclear Alliance, despite Germany’s phaseout of the technology, reports Wirtschaftswoche. It explains that the alliance is a coalition of EU countries advocating for expanded use of nuclear energy, with members including France, Sweden and Poland, among others. The German government has recently “struggled to find a unified stance on nuclear energy”, including the question of whether it should be classified as sustainable at the EU level, notes the outlet. Stern quotes Reiche saying “we must be open to all technological solutions” and referring to the “traditional disagreements” between Germany and France on nuclear power.
Meanwhile, Handelsblatt reports that according to data from the Goal100 thinktank, applications for new wind capacity in Germany have more than tripled in four years, reaching a new record high in 2024. The outlet says that companies report receiving the required permits within just one to one and a half years and that if expansion continues at the current pace, Germany could exceed its target of 115 gigawatts (GW) of wind power by 2030.
Finally, Euractiv covers the “civil war” in Germany’s car sector over “saving petrol engines”, noting that Germany’s biggest automotive suppliers – Bosch, ZF, Schaeffler and Mahle – support a plan to prolong combustion-engine car production. However, Germany’s “big three” – BMW, Mercedes-Benz and Volkswagen – remain “cautious” about openly backing efforts to delay or limit the combustion engine phaseout and underline their commitment to electromobility. In other news, the Times reports on how Germany’s steel industry “is powering ahead in push to go green”, due to the rising price on carbon emissions.
James Murray , BusinessGreen
The UK government has confirmed that the infrastructure strategy, due this week, will include "the largest flooding programme in history", with a record £7.9bn of public funding over the next decade, BusinessGreen reports. The funding is expected to cover both flood defences and nature-based solutions such as reforestation and wetland restoration, which can also reduce flood risk, the article explains. In its coverage, the Press Association notes that “climate change is increasing the risk and frequency of flooding in the UK, with the Environment Agency saying one in four properties in England will be in areas at risk of flooding from rivers, the sea or surface water by mid-century”. It says the government hopes that every £1 spent on flood defences will prevent around £8 in economic damage. The New Civil Engineer says chancellor Rachel Reeves will reveal the full details of the 10-year infrastructure strategy later this week.
Meanwhile, there is also widespread coverage, including in the Times, of a warning from the chair of the Environment Agency that England is facing a “devastating water shortage” that will threaten “our current way of life” unless urgent action is taken. The warning comes from the new national framework for water resources, which outlines how “climate change, population growth and ageing infrastructure are combining to place intense strain on the system”. Notably, the Daily Telegraph’s headline focuses on just one of these drivers, stating that a “population explosion could lead to water shortages by 2055”.
In other UK news, a £2bn project to produce green hydrogen in Humberside has had its investment withdrawn by US firm Air Products, the Times reports. The newspaper calls it “one of the biggest industrial foreign direct investments in the UK”, noting that Air Products blamed “a lack of government commitment to the scheme”. In an ongoing story, German-owned bioethanol company Ensus is lobbying the UK government to provide tens of millions of pounds in subsidies to “prop up Britain’s bioethanol industry”, the Times reports. In related comment, Alistair Osborne, the Times chief business commentator, says that “killing off the [UK] domestic bioethanol industry is a byproduct of No 10’s last-minute tariff concession” to the US.
A Guardian article says spending review figures show that the UK government is cutting the farming budget in England by £100m a year, potentially putting “nature-friendly” farming efforts at risk. Nevertheless, the article says nature and farmers’ groups “cautiously welcome[d the] spending review as there were fears Treasury wanted bigger cuts”.
Finally, as Sky News reports that UK temperatures could reach 32C this week, the Financial Times carries a warning from the fire brigade that London could face wildfires this summer.
Attracta Mooney, Financial Times
In a “major reversal of the trend of recent years”, banks including JPMorgan Chase, Citigroup and Bank of America increased their fossil fuel financing by more than one-fifth in 2024, the Financial Times reports. A report produced by a coalition of groups, co-ordinated by the Rainforest Action Network, concludes that coal, oil and gas finance provided by the world’s 65 largest banks by assets rose by $162bn to $869bn. The article says: “This marked the first time that the total value of fossil fuel funding failed to decline since 2021, the year when many banks announced their support for net-zero targets at the UN COP26 climate summit in Glasgow.” Meanwhile, the Observer reports that Brazil will hold an oil exploration rights auction on Tuesday, “only months” before hosting the COP30 climate summit.
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