French state-owned power giant EDF has taken a “near-€13bn hit” on the Hinkley Point C power plant, reports the Guardian, after delays and cost overruns to the under-construction nuclear project. The €12.9bn (£11bn) “impairment charge” on the project comes a few weeks after the firm “blamed inflation, Covid and Brexit for a four-year delay and extra £2.3bn bill for the Somerset plant”, the newspaper explains: “The company said last month the project was now expected to be completed by 2031 and cost up to £35bn. When inflation is factored in, this figure could reach £46bn. It was originally expected to be complete by 2017, and cost £18bn.” The Sunday Times reports that EDF “returned to an annual profit [in 2023] and had cut its debt by about €10bn last year, thanks to high electricity prices”. The newspaper explains: “EDF recorded a 2023 net profit of €10bn, compared with a loss of €17.9bn in 2022 when it had to shut down several reactors for repairs amid a global energy crisis. Net debt at the end of 2023 was €54.4bn.” It adds that EDF has blamed some of the additional cost for Hinkley on safety measures requested by the UK government, causing “a political row between the French and UK governments over which will foot the higher-than-expected bill”. EDF chief executive Luc Rémont told a news conference on Friday that he was “confident” of persuading the British government to help finance Hinkley as well as the proposed Sizewell C plant in Suffolk, reports the Financial Times. It adds: “He declined to say what shape any financing aid could take or when talks could conclude, but stressed that EDF would not increase its stake beyond 20% in £20bn Sizewell C as part of any quid pro quo. People close to the discussions have told the Financial Times that the French government is pressing Britain to support EDF on Hinkley Point, including by potentially providing loan guarantees to lower the project’s financing costs.” The Daily Telegraph also has the story.

Meanwhile, the Times reports that the UK government is holding talks with EDF to take control of land at a site in Lancashire as part of plans to roll out “mini-nuclear” power stations. It says: “Great British Nuclear is in early discussions with the French state-owned energy group over buying land adjacent to its existing nuclear plants at Heysham, with a view to potentially giving the green light for a private developer to build a small modular reactor there. The 255-acre site is one of eight in Britain approved for new nuclear development and is the location of EDF’s Heysham 1 and Heysham 2 nuclear power stations. Almost 109 acres has a nuclear site licence, while the rest is being used for other purposes.” The Guardian reports that government ministers have been urged by Citizens Advice – the UK’s largest independent advice provider – to protect consumers from an increase in household energy bills to pay for Sizewell C. The organisation warns that the project “may offer consumers poor value for money even if it is cheaply financed”, the newspaper says.

The Biden administration intends to make a concession to carmakers and unions by “relax[ing] elements of one of its most ambitious strategies to combat climate change, limits on tailpipe emissions that are designed to get Americans to switch from gas-powered cars to electric vehicles”, the New York Times reports. According to “three people familiar with the plan”, instead of “essentially requiring automakers to rapidly ramp up sales of electric vehicles over the next few years, the administration would give car manufacturers more time, with a sharp increase in sales not required until after 2030”, the outlet explains: “Last spring, the Environmental Protection Agency proposed the toughest-ever limits on tailpipe emissions. The rules would be so strict, the only way car makers could comply would be to sell a tremendous number of zero-emissions vehicles in a relatively short time frame.” The administration plans to publish the final rule by early spring, the newspaper says, noting that the potential change comes as “president [Joe] Biden faces intense crosswinds as he runs for re-election while trying to confront climate change”. It adds that “former president Donald J Trump, the Republican front-runner, has seized on electric cars, falsely warning the public that they ‘don’t work’ and telling autoworkers that Biden’s policies are ‘lunacy’ that he would extinguish on ‘the first day’ of his return to the White House”. Reuters and the Hill also have the story.

With Biden expected to face Trump in the US presidential election in November, Politico asks whether “young climate voters care”. It says: “Despite delivering the largest-ever investment in climate action through Congress, pouring hundreds of billions of dollars into technologies such as wind power and electric cars, Biden and his appointees have faced loud protests from activists dismayed by administration actions boosting oil and gas production. Unhappiness is especially rife among the young climate-minded voters who Democrats worry will either sit out the November election or back a third-party candidate.” The New York Times factchecks three of Trump’s recent claims on climate and energy. One of them is that “windmills aren’t working, the most expensive form of energy ever”. The newspaper explains that wind accounts for around 10% of electricity in the US and – along with solar – “can generate electricity more inexpensively than any other type of power plant, even without subsidies”. Separately, Reuters speaks to “a dozen Republican policy consultants and former Trump administration officials” and reports that much of Biden’s climate policy “could go up in smoke” were Trump to win the election. It says that Trump “would re-enter the White House with a raft of executive orders to expand oil, gas and coal development”, adding that he would end a pause on new LNG export permits, scrap electric vehicle mandates and once again withdraw the US from the Paris Agreement.

In other US news, the Financial Times reports that US gas prices “have plunged to a near-three-decade low as what is set to be the country’s warmest winter on record slashes demand for the heating fuel just as production surges to record levels”. Reuters notes that strong El Niño conditions this winter “directed warmer air into the northern US and ensured temperatures have been much milder than usual”.

Feeling “pressure from Chinese competitors”, US and European car manufacturers are reducing electric vehicle (EV) costs so “they can have price tags and profit margins similar to those of fossil-fuel models”, Reuters quotes industry executives as saying. The Sunday Times has an article on how China “plans to invade Europe – with electric vehicles”. Chinese business outlet Caixin reports that “German direct investment in China increased by 4.3% to a record €11.9bn ($12.7bn) in 2023”, adding that while small and medium-sized German enterprises are looking to reduce their business ties with China, “large German companies in industrial, chemical and auto sectors” are not. Shanghai-based outlet the Paper reports that the Beijing-based thinktank the Center for China and Globalisation said on the sidelines of the Munich Security Conference that if China, the US and the EU “cannot achieve some form of trilateral cooperation, climate governance will be unattainable”. Another Caixin article quotes a financial executive saying that “digital infrastructure and green energy” are key areas of opportunity for Chinese companies in the Middle East, adding that “a growing number of Chinese companies, such as new-energy vehicle manufacturers and cloud service providers, are entering Middle East markets to capitalise on Beijing’s strengthening ties…and the Gulf states’ accelerating shift to a digital and green economy”. The Communist Party-affiliated newspaper People’s Daily quotes Zhou Yonghong, deputy manager of the Wuling Power Corporation’s Bangladesh office, as saying that “there are broad prospects for cooperation between China and Bangladesh in the field of clean energy”.

Elsewhere, the Hong Kong-based South China Morning Post says that a Chinese research team has made a breakthrough in “convert[ing] carbon dioxide into valuable chemical products”. The People’s Daily reports that to achieve its “dual carbon” targets for 2030 and 2060, China is “actively promoting geological surveys and related technological experiments on carbon capture and storage”. Finally, Science and Technology Daily reports that, according to an official of the ministry of ecology and environment (MEE), China will develop innovative policies for “synergistic” reduction of pollution and carbon emissions.

Australian investment manager Macquarie and another shareholder are trying to sell a combined £1.3bn stake in Cadent, the UK’s biggest gas network, reports the Financial Times in a story trailed on its frontpage. According to “two people close to the discussions”, the newspaper says Macquarie currently owns 26% of the business and is in early stage talks to sell a near 5% stake, while US-based Federated Hermes – which currently owns 13% of Cadent – is looking to sell a 4.6% stake. The sale will be a “key test of investor appetite for gas infrastructure as Britain tries to reduce its use of natural gas as part of its efforts to reach net-zero carbon emissions by 2050”, the FT says: “Gas pipeline owners hope the UK will encourage the use of hydrogen, which does not produce carbon dioxide emissions when it is burnt, as a replacement for natural gas for home heating. But the UK’s advisory National Infrastructure Commission last year urged the government to back heat pumps, which run on electricity, instead saying hydrogen for heating was ‘simply not ready at scale’…The government has said it will decide on the role of hydrogen in home heating in 2026, following trials in people’s homes. However, two potential trials were cancelled last year because of local opposition and low availability of hydrogen, leaving only one left to run, in Fife, Scotland.”

In other hydrogen-related news, the Financial Times says that “geologists are signalling the start of a new energy ‘gold rush’ for a previously neglected carbon-free resource – hydrogen generated naturally within Earth”. Delegates at a scientific conference in Denver, Colorado, discussed the findings of an unpublished study by the US Geological Survey that suggests “as much as 5tn tonnes of hydrogen exists in underground reservoirs worldwide”, the newspaper says. It quotes the project leader on the study as saying: “Most hydrogen is likely inaccessible, but a few percent recovery would still supply all projected demand – 500m tonnes a year – for hundreds of years.”

The world’s five largest listed oil companies have made profits of more than a quarter of a trillion dollars since Russia’s invasion of Ukraine led to dramatic increases in energy prices and household bills, the Guardian reports. According to the NGO Global Witness, “super-majors” – BP, Shell, Chevron, ExxonMobil and TotalEnergies – have made $281bn (£223bn) since the war began in February 2022, the newspaper explains. The profits have been achieved despite the UK government implementing a windfall tax on energy company profits, says BusinessGreen, which notes that “over the past two years the five companies have paid $200bn to shareholders”. It quotes Patrick Galey, senior fossil fuels investigator at Global Witness, as saying: “This analysis shows that regardless of what happens on the front lines, the fossil fuel majors are the main winners of the war in Ukraine. They have amassed untold wealth off the back of death, destruction, and spiralling energy prices.”

High energy costs in Germany led to “frugal use” of electricity and gas in the past year, reports Der Spiegel. It says German households significantly reduced their consumption, using 5.6% less gas and 5.1% less electricity than in 2022, according to the Federal Network Agency. It explains that these savings resulted in households paying over €4.3bn less to their utility companies than they would have had to pay without the savings. 

Meanwhile, Die Zeit reports that German economy and climate minister Robert Habeck advocates citizen participation in windfarm construction for the accelerated expansion of wind power in Germany, emphasising it as a “recipe for success”. He highlights the importance of local ownership and financial involvement, stating that when citizens perceive wind turbines as their own and are financially engaged, it positively shapes public acceptance, notes the outlet. It continues that despite challenges in Bavaria’s wind power expansion, Habeck expresses optimism, stating that “Bavaria can do more and do it better” during his visit to a citizen-owned wind park in Fuchstal, Upper Bavaria.

Finally, the European Commission has approved Germany’s €4bn program aimed at greening industrial production by artificially increasing carbon prices, reports EurActiv. It says Germany’s economy minister, Robert Habeck, called it a “pioneering decision for energy-intensive industry”. In addition, Handelsblatt reports that “the hydrogen revolution is gaining momentum in Germany”, noting that a total of 33 projects, which received the necessary approval from Brussels on Thursday, are intended to contribute to the implementation of Germany’s hydrogen strategy and are supported by a total of €4.6bn from the federal and state governments. 

A trial beginning today of five climate activists alleged to have vandalised the London office of banking firm JPMorgan “could become a pivotal case for the use of law in England and Wales”, reports the Financial Times. Five members of the protest group Extinction Rebellion will face charges at Inner London Crown Court of criminal damage, the newspaper explains: “They were arrested after applying stickers at JPMorgan premises that read ‘in case of climate emergency, break glass’ and going on to damage windows.” The activists “plan to base their legal defence on contending that the property owner would have consented to the damage if only they truly understood the effects of climate change”, the FT says, but “they may be the last to do so…after a string of acquittals of other protesters who had successfully used the defence prompted the UK government to apply to the courts for a review”. Government ministers “have sought to crack down on public disruptions by introducing legislation to curtail such activities”, the article continues, noting that “these changes, which strengthen police to restrict protests, to stop and search people ‘without suspicion’, as well as create new offences, have raised questions about civil liberties being encroached”. On Wednesday, the Court of Appeal will hold a hearing on whether the defence may be used in climate protest cases, the FT says.

Elsewhere, a frontpage story in the Mail on Sunday says its investigation has uncovered that “militant Just Stop Oil activists are plotting a sinister nationwide blitz to ‘occupy’ MPs’ homes ahead of the general election”. One Just Stop Oil member – speaking to a Mail on Sunday reporter posing as a new recruit – is quoted by the paper saying: “What our strategy is, at least in the short-term, is that we’re going to be occupying Labour MPs’ offices, their houses, disrupting their speeches, etc. So that’s kind of what taking action with Just Stop Oil looks like for the short term. We’re not going to be doing what we’ve been doing previously which is marching on the roads. There’s been a change of direction. The target is Labour MPs.” The Times reports that government ministers have called on the police to take an “extremely robust” approach to such tactics. The article quotes an unnamed government minister saying: “These unhinged zealots are unable to win rational arguments and are unable to win elections so instead they resort to intimidation and harassment.”

In a speech at the Scottish Labour conference, opposition Labour leader Sir Keir Stamer has “attempted to calm fears from the North Sea oil and gas industry” over the party’s oil and gas policy, reports Scottish daily newspaper the Press and Journal. It continues: “The Labour leader told party members gathered in Glasgow that work in the North Sea would continue ‘for decades’. It comes after the industry reacted angrily to Labour’s plans for a [tightening and extending of the current] windfall tax on the profits of oil and gas firms. The party says they will raise the current tax on excess profits from 75% to 78% until at least 2029.” Starmer addressed the concern directly in his speech, saying the energy innovation race was one Britain “can and must win”, the article says. It quotes him adding: “So I’ve said before – and I say again – that work will continue for decades to come. But they also told me about the legacy they can build for Scotland’s future. The pride they have in a new opportunity. Converting this infrastructure into a thriving carbon capture and storage industry. Literally putting the carbon back in the ground it came from. And giving their community a future – not just for the short-term – but for decades.” The FT’s inside politics newsletter notes that “Labour also plans to remove ‘loopholes’ – or investment allowances within the windfall tax – which the Conservatives put in place to encourage industry to continue to invest”. Scottish Labour leader Anas Sarwar has “shrugged off an attack” over the windfall tax plans after being called a “traitor” by Aberdeen business leaders, reports the Guardian. The Scotsman reports that Offshore Energy UK (OEUK), the leading representative body for the offshore industry, is convening “emergency summits with operator and supply chain members” this week over Labour’s plans for the windfall tax. The Scotsman also reports that shadow climate change and net-zero secretary Ed Miliband told the conference that Labour would “create hundreds and thousands of jobs” in renewables and make Scotland the “clean energy capital” of the UK. 

Meanwhile, in a frontpage story, the Journal – a daily newspaper produced in Newcastle upon Tyne – reports that Labour’s shadow chancellor Rachel Reeves “has claimed her party will create more than 25,000 green jobs in the north-east”. It quotes Reeves speaking on a visit to the region on Friday: “The reason I have come here today is the huge potential around hydrogen to power HGV trucks, agricultural machinery, and so many more things as well. The UK government is behind what most governments are doing in terms of recognising hydrogen as a low-carbon fuel source and in supporting the growth of the sector.” Reeves also “insisted” that Labour’s scaled-back “green prosperity plan” would still have major benefits to the region, the outlet says. 

In related comment, Angela Rayner – deputy leader of the UK Labour party – says in the Financial Times that “Labour promises to work with business”. She writes: “Labour’s mission to achieve the fastest sustained economic growth in the G7…This means creating a publicly owned energy company to deliver real energy security, as well as cheap, clean power.” In the Daily Telegraph, prime minister Rishi Sunak says that Labour does “not have a plan”, adding: “All Labour now have is their 2030 decarbonisation promise, which they themselves have said has a £28bn-a-year price tag, but with no plan to pay for it.” [This is inaccurate. Labour’s £28bn green prosperity plan was to have included spending in a range of areas, with the 2030 target relying to only a limited extent on public investment. Labour’s scaled-back climate investment plans remain roughly 50% higher than current government policy, according to recent Carbon Brief analysis.] Financial columnist Matthew Lynn makes the same comparison in his Daily Telegraph article, stating: “That £28bn a year green agenda might have been watered down, but Labour is committed to decarbonising the grid by 2030 seemingly without the investment to pay for new energy sources.” And Sunday Times columnist Robert Colville does the same: “Decarbonising the electricity grid by 2030 (which pretty much everyone in the sector knows is impossible), yet not actually spending the £28bn a year that was apparently necessary to get there.”

An editorial in the Times says the move away from ethical, social and ­governance (ESG) investments is “to be welcomed”, noting that “more than $10bn was withdrawn last year from ESG-associated funds, having once attracted a total of $51.2bn”. It points to the issue of “greenwashing”, whereby companies create and meet their own ESG compliance criteria. It says: “The fundamental problem with the label ESG is that it means both nothing and everything. There is no consistent definition of any of its three ­constituent parts and no accepted criteria against which claims for conformity can be verified, so it can be defined almost at will. ESG ratings are ­unaudited and the data on which they are based is often incomplete.” The Times also reports on new research urging companies, regulators and stock markets “to change their approach to environmental, social and governance issues to prevent the subject from becoming a ‘tick-box’ exercise”.

In other UK comment, an editorial in the Daily Telegraph says that the threat to the UK’s undersea cables “needs to be taken seriously”. It is the risk “to critical infrastructure that matters”, the newspaper says: “Much of this is literally out of sight – undersea cables that connect up the world and without which the lives we lead today would be jeopardised. Yet who is protecting these fibre-optic cables and how?” An editorial in the Guardian says the world needs festivals and international gatherings “if we are to find a common language to resist environmental destruction”. Richard Partington, the Guardian‘s economics correspondent, writes that there are “two priorities” for getting the UK economy growing: “tackling entrenched inequalities and – the biggest challenge – addressing the climate crisis”. Finally, in his Daily Telegraph column, Nick Timothy – joint chief of staff under former UK prime minister Theresa May – writes that the UK’s climate policies have been “an act of national self-harm”. [Timothy made almost identical claims in 2016.]

A new study presents “compelling evidence” that extreme rainfall events can increase the mortality risk from respiratory diseases – especially for asthma and chronic obstructive pulmonary disease. The authors detect extreme rainfall events with different return periods across 30 cities in mainland China, Taiwan, South Korea and Japan, over 1980-2020. They find “significant associations” between respiratory death, and 1-in-five and 1-in-10 year extreme rainfall events. “The associations were strongest for asthma, followed by chronic obstructive pulmonary disease, but not significant for pneumonia,” the paper says.