|
Jan Strupczewski and Sudip Kar-Gupta, Reuters
Energy ministers from the G7 group of major economies will discuss the possibility of a coordinated action to cushion the impact of the US-Israeli war on Iran on oil prices today, reports Reuters. The article says EU economy commissioner Valdis Dombrovskis told a conference that the G7 had agreed to coordinate their actions on oil, including the release of strategic reserves. The Financial Times reports that “plans to release hundreds of millions of barrels of crude from emergency stockpiles are unlikely to calm volatile crude prices for long if the conflict in the Gulf continues”. Politico reports that Germany, Italy and Belgium are planning to host a meeting today focused on tackling energy prices across the EU. The Financial Times reports that European governments are monitoring petrol price “gouging” and assessing the potential of tax changes to “soften the blow of high energy prices”.
A separate piece in Reuters reports that oil prices have fallen from a three-year high, as US president Donald Trump “predicted the war…could end soon”. Bloomberg covers comments made by Trump that he would waive oil-related sanctions and have the US Navy escort tankers through the Strait of Hormuz. The Guardian asks “how high could oil prices go – and what might be the global economic fallout?”, after prices passed $119 a barrel on Monday. It adds that the continued closure of the Strait of Hormuz could drive the price close to $150 a barrel, passing a record high set in 2008.
MORE ON OIL
The Times: “Gulf has just days before oil storage runs out — so what next?” The Associated Press explores global oil reserves and why countries have so far been reluctant to “dip into the world’s emergency oil stockpiles”. Semafor covers the impact of the Iran war’s energy shock on Asian nations that are “feeling the crunch”. The Wall Street Journal: “Why Iranian regime change would transform global energy markets.”
Kenza Bryan and Jana Tauschinski, Financial Times
Record rainfall and widespread flooding in western and southern Europe in February caused by “exceptional” atmospheric rivers should draw more attention to climate change, according to the EU’s earth observation service, reports the Financial Times. The article adds that a new report from Copernicus highlights that the “run of intense storms affecting France, Spain, Portugal and Morocco in particular stood in contrast with unusual dryness in the rest of the continent”. Sky News reports that global temperatures were 1.49C above the pre-industrial average last month, making it the fifth-warmest February on record. It adds that average Arctic sea ice extent was 5% below average in February, the third-lowest on record for the month. Relatedly, the Associated Press reports that the US had its second-warmest winter on record between December and February.
Luo Wangshu, China Daily
China will accelerate efforts to build a “smarter” and “greener” transport system during the 15th five-year plan period (2026-2030), said the country’s transport minister Liu Wei on Monday, reports state-run newspaper China Daily. It says Liu made the remark on the sidelines of the “two sessions”, adding that China will “place greater emphasis on integration, safety, digital upgrading, and green development” of its national transport network. State news agency Xinhua cites Liu saying that China will expand the application of “clean energy transportation equipment”, such as new energy vehicles (NEVs) and vessels. 21st Century Business Herald publishes an interview with Dong Zhanfeng, with the Ministry of Ecology and Environment (MEE), saying that the national low-carbon fund sends a signal at the national level of providing “long-term capital” and maintaining “strategic resolve” for the green transition, reflecting a major shift from “fiscal subsidies” to “capital-led development”.
Zheng Shanjie, head of the National Development and Reform Commission (NDRC), China’s top economic planner, said China will continue to advance major energy projects each involving investments of more than one trillion yuan ($144.5bn), reports International Energy Net. Yuan Da with the NDRC said that China will ensure its additional electricity demand is covered by new clean-energy generation, according to International Energy Net. Feedstock energy use has become the “main source of growth” in China’s fossil energy consumption during the “14th five-year plan” period, reports BJX News, citing the National Energy Administration (NEA). The outlet says that energy use as feedstock in coal-chemical and petrochemical industries grew at an average annual rate of as high as 13%, according to the NEA. International Energy Net reports that the cheap electricity and the accelerated construction of new-energy projects in western China has driven the “rapid relocation” of many industries to the region, according to the NEA.
MORE ON CHINA
China’s goal to build 110 gigawatts (GW) of nuclear capacity by 2030 will “probably be missed”, reports Bloomberg, citing Francois Morin of the World Nuclear Association. Chinese NEVs’ leading position globally is “inseparable from a vast pool of well-educated talent”, says a People’s Daily article bylined by Jin Sheping – used to signal the thoughts of party leadership on economic matters. People’s Daily carries an opinion article saying that “green development” is the “underlying colour” of 16 “powerhouse goals” set in the 15th “five-year plan” draft. A China Daily editorial says that China’s “responsible” diplomacy provides “stability and certainty” for a world tied together by issues including “climate pressures”. China Daily cites “foreign media outlets”, saying that China is “undoubtedly an important leader” in the global low-carbon transition. Reference News translates analysis of the 15th five-year plan by Carbon Brief. Global Times: “Protectionist shift a stumbling block to EU’s industrial growth.”
Damien Gayle, The Guardian
“Israel's bombing” of Iranian oil infrastructure will have “major long-term environmental repercussions”, according to the World Health Organization (WHO), reports the Guardian. It adds that two days after the Shahran oil depot north-east of Tehran and the Shahr-e fuel depot were bombed by warplanes, they continue to burn. The article says that in the immediate aftermath, Iran’s environmental agency warned residents to stay at home, due to the toxic chemicals spread by the airstrikes on fossil-fuel installations that could lead to acid rain. The Guardian quotes the head of the WHO, Tedros Adhanom Ghebreyesus, who said: “Damage to petroleum facilities in Iran risks contaminating food, water and air – hazards that can have severe health impacts, especially on children, older people, and people with pre-existing medical conditions.”
MORE ON IRAN
UK: Lengthy US-Iran war would affect ‘lives and households of everybody’, says Starmer
Peter Walker, The Guardian
UK ministers are considering ways to mitigate rising energy bills as oil prices pass $100 a barrel, reports the Guardian on its frontpage. It adds that prime minister Keir Starmer has warned that a long-term US-Iran war could affect the “lives and households of everybody”. Frontpage stories in the i newspaper and the Daily Express suggest the fuel duty hike planned for autumn could be removed in response to surging oil prices. The Financial Times covers comments by chancellor Rachel Reeves that the crisis in the Middle East is likely to “put upward pressure on inflation” in the coming months.
The Guardian adds that Reeves says she is ready to help households with rising costs, but suggests a “rapid deescalation” would be the best protection against a spike in energy prices. A frontpage story in the Daily Mirror covers Reeves’ pledge to shield families from the “cost of war” as “fears grow over fuel and energy bills”. Bloomberg notes that the costs of the last UK energy bailout during the 2022 energy crisis triggered by the Ukraine war limit Reeves’ options for support. Similarly, the Financial Times questions whether Reeves can afford to shield households from an energy shock.
MORE ON UK
The Independent asks why renewables are not better protecting the UK from the energy price shocks caused by the Iran war, explaining the continued “dependence on fossil fuels leaves households especially exposed when international markets turn volatile”. The Times asks what the Gulf crisis means for UK gas supplies. The Independent reports that the British Chambers of Commerce said the geopolitical situation could “change the economic outlook considerably” in the UK. BusinessGreen covers a new YouGov survey that suggests anti-EV myths continue to gain traction with the public. The Daily Telegraph reports that Reform UK has pledged to scrap heat pump grants and support for carbon capture and storage if it were elected.
John Ainger, Bloomberg
The EU will launch a new investment fund designed to deliver trillions of euros of spending to support the bloc’s green-energy transition, reports Bloomberg. It adds that the funding initiative comes as the EU tries to spur investment in the infrastructure needed for a renewables-based energy system over the next 15 years. The article quotes a draft document, which states: “Increased and accelerated investments into grids and networks, the backbone of the energy system, is essential for European competitiveness and security. Public support can help spread the costs of the transition over the lifetime of assets, preventing short-term price peaks.”
|
