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How can Europe stop U.S. and China dominance of cars and batteries without being protectionist?

May 18, 2023 by William Todts

European and Chinese car and battery makers are making plans to set up plants in the U.S. to take advantage of their big new “made in the USA” subsidies. They can then ship their vehicles to Europe to sell into its very large and generously subsidised company car market. This puts electric vehicle production in Europe at a serious disadvantage. As William Todts at T&E explains, the EU must respond, instead of effectively assisting the U.S. … [Read more...]

Filed Under: Energy, Transport and energy Tagged With: automobile, batteries, car, China, EU, Europe, EVs, industry, subsidies, transport, US

Europe: preventing a “carbon wall” between the West and the ten Central and Eastern EU nations

May 12, 2023 by Diana-Paula Gherasim

Diana-Paula Gherasim at the IFRI Centre for Energy & Climate summarises her 36-page data-rich report on the progress and challenges for the ten Central and Eastern EU (CEECs) countries in decarbonisation. The Russian invasion of Ukraine has focussed all minds on energy security and the best solutions: less fossils, efficiency gains and clean energy made in the EU. Gherasim says that vitally important progress is being made in avoiding a … [Read more...]

Filed Under: Energy, Oil, Gas & Coal, Renewables Tagged With: Austria, Bulgaria, CEECs, CleanEnergyPackage, coal, Czechia, decarbonisation, EmissionAllowances, Energy, Estonia, EU, Europe, EUSovereigntyFund, finance, gas, Germany, GreenDeal, Hungary, innovation, Latvia, Lithuania, LNG, Nuclear, Poland, policies, Romania, Russia, security, Slovakia, Slovenia, subsidies

‘Green Deal Industrial Plan’ explainer: 40%+ of the top low-carbon technologies must be made in the EU by 2030

March 24, 2023 by Daisy Dunne and Josh Gabbatiss

The EC’s new series of proposed targets and reforms, contained in its Green Deal Industrial Plan, aim to ensure that at least 40% of the EU’s low-carbon technologies will be made within its borders by 2030. The eight “strategic net-zero technologies” are: Solar (power and thermal); Onshore and offshore wind; Batteries and energy storage; Heat pumps and geothermal; Electrolysers and fuel cells; Sustainable biogas/biomethane; CCS; Grid … [Read more...]

Filed Under: Energy, Renewables Tagged With: batteries, biogas, biomethane, CCS, CDR, China, copper, EC, electricity, electrolysers, EU, Europe, finance, fuelcells, geothermal, grids, HeatPumps, jobs, lithium, markets, permitting, solar, storage, subsidies, trade, US, wind

Analysis: U.S. IRA subsidies put two-thirds of Europe’s battery production pipeline at risk

March 9, 2023 by Transport & Environment

Major battery manufacturing projects earmarked for Europe are now looking to site themselves in the U.S. to take advantage of its IRA subsidies, according to a new report by T&E. It says over two-thirds of lithium-ion battery production planned for Europe – a pipeline potential of 1.8 TWh - is now at risk of being delayed, scaled down or cancelled. The nations most at risk of losing the business are Germany, Hungary, Spain, Italy, the UK and … [Read more...]

Filed Under: Energy, Storage Tagged With: batteries, electricity, emobility, Energy, EU, EVs, Germany, gigafactories, grids, Hungary, IRA, Italy, Norway, spain, storage, subsidies, UK, US

Europe vs U.S: incentivising battery manufacture to take the global lead from China

February 16, 2023 by Transport & Environment

Europe is already well placed to end its reliance on Chinese Li-ion battery cells by 2027, according to a study by Transport & Environment (T&E). The new analysis of battery-makers’ announcements points at Europe producing enough Li-ion cells to fully meet domestic demand for EVs and energy storage in four years’ time. T&E also forecasts that essential elements of the supply chain can substantially shift from China into Europe, like … [Read more...]

Filed Under: Energy, Storage Tagged With: cathodes, China, EU, EuropeanSovereigntyFund, EVs, funding, IRA, manufacturing, metals, storage, subsidies, tteries, US

How to sell Heat Pumps to the public in Europe

January 19, 2023 by Helena Uhde

In EU households, 62.8% of energy consumption is for space heating, and another 15.1% for water heating, mostly powered by fossil fuels. Heating and cooling is responsible for 52% of final energy demand in Europe. So, with REPowerEU, the EU has once again strengthened support for heat pumps to achieve energy independence and climate goals. Heat pump sales in Europe grew by an unprecedented 34% in 2021, thanks to a total 2.18m heat pump units … [Read more...]

Filed Under: Energy, HVAC Tagged With: cooling, costs, decarbonisation, efficiency, electrification, EU, Hallstatt, heating, HeatPumps, HVAC, REPowerEU, sales, subsidies

30+ nations now subsidise Heat Pumps because lifetime cost is cheaper than fossil boilers

January 10, 2023 by Josh Gabbatiss

The global growth in heat pumps can deliver almost 40% of all possible emissions cuts from heating by 2030 (with most of the rest coming from efficiency, mainly insulation), says the IEA. This is according to their “Announced Pledges Scenario” (APS) which assumes that governments carry out all of the climate commitments they have made. Keeping buildings warm produces one-tenth of global energy-related CO2 emissions. So the APS’s heat pump growth … [Read more...]

Filed Under: Energy, HVAC Tagged With: buildings, China, efficiency, emissions, EU, heating, HeatPumps, HVAC, IEA, Italy, LCOE, Poland, subsidies, US

How governments are defusing political opposition to the energy transition

November 22, 2022 by Jared Finnegan

What’s holding up the energy transition? Not the hardware, says the energy sector: proven clean energy solutions abound and any bottlenecks are continually being addressed by innovation. Not the money, says the finance sector: there is more than enough investment queueing up for realistic returns. It’s the politics: the voters and the businesses that rationally oppose what could cost them too much. So the main obstacle is the ability of … [Read more...]

Filed Under: Energy, Policies Tagged With: business, elections, EU, France, Germany, markets, Politics, subsidies, tax, transition, US, voters, welfare

How European nations are using tax to promote zero-emissions cars

November 14, 2022 by Griffin Carpenter

Taxation is an effective way to steer people towards zero-emission cars. But there is wide variation between European countries in how this is done, and therefore the results. Griffin Carpenter at Transport & Environment (T&E) summarises their report “The good tax guide: A comparison of car taxation in Europe” that covers seven forms of car taxation across 31 European countries in detail. The ultimate goal should be to create a clear … [Read more...]

Filed Under: Energy, Transport and energy Tagged With: Belgium, BEVs, cars, emissions, EU, Europe, EVs, France, road, subsidies, Sweden, tax, transport, UK

Energy Security: what if the UK government had not “cut the green crap” from 2013

October 24, 2022 by Simon Evans

The UK provides an example of a government that cut back its green ambitions only to see its energy security suffer. In 2013, then-prime minister David Cameron told his ministers to “cut the green crap”. That led successive governments to downgrade home energy efficiency, requirements for new homes to be “zero carbon”, end subsidies for onshore wind and solar, and effectively ban onshore wind in England. What if the UK had stayed on its … [Read more...]

Filed Under: Energy, Policies Tagged With: buildings, Cameron, Conservatives, efficiency, electricity, gas, imports, insulation, onshore, Russia, solar, subsidies, UK, wind

Europe’s decoupling of electricity and gas prices: the crisis is temporary, so why do it?

September 30, 2022 by Simona Benedettini and Carlo Stagnaro

The debate is intensifying over how to decouple power prices from the extraordinarily high natural gas prices in Europe. Simona Benedettini and Carlo Stagnaro warn that the current problem of high prices is not caused by the mis-functioning of electricity markets, but by the exceptional trend in gas prices. So should the markets be re-designed at all? Will we lose the benefits of the current design, one being the reliable profits that renewables … [Read more...]

Filed Under: Energy, Oil, Gas & Coal, Policies, Renewables Tagged With: caps, decoupling, EC, electricity, EU, Europe, gas, Greece, Italy, markets, Portugal, power, prices, Russia, spain, subsidies, Ukraine

Is a Carbon Tax the best way to decarbonise the Grid?

September 20, 2022 by Severin Borenstein and Ryan Kellogg

Severin Borenstein at the Energy Institute at Haas and Ryan Kellogg at the University of Chicago question whether carbon pricing is the best way to decarbonise the electricity grid. The authors did an empirical analysis of all of the fossil plants in the US. It shows that a CES (clean electricity standard) or zero-emissions subsidies would close down fossil plants in almost the same order as a carbon tax. So using alternative policy tools can … [Read more...]

Filed Under: Energy, Grids Tagged With: carbontax, CES, coal, electricity, emissions, gas, grids, policies, subsidies, US

Don’t cap gas prices for consumers. It won’t reduce demand. Instead, subsidies must reward cuts in gas use

September 9, 2022 by Daniel Gros

European nations are considering capping the price of gas that consumers pay, a subsidy that governments will pay for, to ensure households don’t freeze this winter. Daniel Gros at CEPS warns that this strategy will remove the incentive for consumers to cut their gas use, keeping international market prices high. Instead, governments should incentivise a reduction in gas use. Gros has modelled two strategies. The first is to pay households for … [Read more...]

Filed Under: Energy, Oil, Gas & Coal, Policies Tagged With: consumers, demand, EU, gas, imports, LNG, prices, Russia, subsidies, Ukraine, winter

The light bulb transition: when standards and subsidies promote sub-optimal technologies

June 21, 2022 by Lucas Davis

This article is for those who want to understand the importance of timing: when is the right time to impose new standards and start/stop subsidies, to optimise the pathway to maximum efficiency? The light bulb transition of the last two decades is one of the successes of energy efficiency: from the old incandescents (15 lumens/watt) to halogen incandescents and CFLs, and then, finally, to LEDs (80 lumens/watt and prices falling 90% in ten years). … [Read more...]

Filed Under: Energy, Energy efficiency Tagged With: CFLs, efficiency, halogen, incandescents, LEDs, lighting, lumens, regulations, standards, subsidies

Do e-bike subsidies lift sales, change habits and cut emissions?

May 27, 2022 by Lucas Davis

What happened when Sweden introduced a 25% rebate on the cost of an e-bike for 12 months over 2017-18? Lucas Davis at the Haas School of Business reviews a study that digs into the consequences. Sales increased by 70%. E-bike prices remained steady, so the sellers didn’t simply raise prices to eat up the rebate. The study estimates that although a third of those sales would have “happened anyway” (i.e. no additionality) the remaining two-thirds … [Read more...]

Filed Under: Energy, Transport and energy Tagged With: Austria, congestion, ebikes, emissions, France, Germany, Italy, Luxembourg, micromobility, mobility, Norway, pollution, Scotland, subsidies, Sweden, transport

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      Recent Posts

      U.S. EPA: new rules proposed for cutting Fossil Fuel-Fired Power Plant emissions

      Financing Renewable Hydrogen globally: ramp up to 2030 only needs $150bn/year

      Five charts on the Energy Transition: the 2020s is the decade of maximum disruption. By 2030 the endgame will be clear

      Making Hydrogen direct from seawater using double-membrane electrolysis

      The history of evidence of CO2-driven climate change starts in the mid-1800s

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