MINEX Forum

Tag: climate policy

  • EU Faces Criticism Over Plans to Fast-Track Industrial and Energy Projects

    EU Faces Criticism Over Plans to Fast-Track Industrial and Energy Projects

    The European Commission is facing growing criticism after a new report by watchdog Corporate Europe Observatory (CEO) accused Brussels of weakening environmental protections in order to accelerate industrial and energy projects across Europe.

    Published on Tuesday, the report claims the EU is using the ongoing energy crisis to justify deregulation measures that could benefit fossil fuel companies, mining firms, hydrogen developers, and major technology corporations. According to CEO, proposed legislation would speed up approval processes for projects labelled as “strategic” or of “overriding public interest,” potentially allowing them to bypass environmental assessments and reducing opportunities for public scrutiny.

    The debate comes amid broader discussions in Brussels over balancing Europe’s industrial competitiveness and green transition goals with environmental safeguards and democratic oversight. The issue has gained further attention following the EU executive’s recent decision to increase free pollution allowances for energy-intensive industries under the bloc’s carbon market by nearly €4 billion.

    CEO researcher and campaigner Pascoe Sabido argued that while the energy crisis initially pushed Europe toward reducing dependence on fossil fuels, industry lobbying has transformed fast-track measures into tools for expanding polluting infrastructure.

    The report warns that the proposed reforms could weaken protections for local communities by limiting their ability to challenge projects affecting health, land, and livelihoods. Hydrogen transport systems, carbon dioxide pipelines, and large-scale data centres were identified as projects that could undermine environmental and social standards.

    Specific concerns were raised over mining developments in Sweden linked to critical raw materials for the energy transition, which campaigners say threaten Indigenous Sámi communities and local water systems. In Ireland, rapidly expanding data centres are reportedly placing additional pressure on the national electricity grid and increasing reliance on fossil fuel power generation.

    The report also highlights concerns over carbon dioxide transport pipelines associated with fossil gas infrastructure. CEO pointed to incidents in Yazoo County in the United States as evidence of potential health risks linked to pipeline leaks, including asphyxiation and long-term health impacts.

    According to the analysis, industry lobbying has influenced several upcoming EU legislative initiatives, including the Environmental Omnibus, the Grids Package, and the Industrial Accelerator Act. Campaigners argue these proposals could reduce environmental impact assessments, expand automatic permit approvals, and restrict access to legal appeals.

    Danish MEP Niels Fuglsang defended accelerated permitting procedures for renewable energy and grid projects, arguing that Europe must speed up clean energy deployment to strengthen energy independence, competitiveness, and the green transition. He also supported exemptions from certain EU water regulations for grid infrastructure projects, calling current procedures excessively time-consuming.

    The European Commission has defended its broader simplification agenda as necessary to accelerate the energy transition, improve industrial competitiveness, and reduce dependence on imported fossil fuels. Environmental groups, however, warn that easing restrictions for polluting infrastructure could lock Europe into long-term fossil fuel dependence rather than prioritising cleaner energy alternatives.

  • EU Divided as 10 Countries Push to Reform Carbon Market Ahead of Summit

    EU Divided as 10 Countries Push to Reform Carbon Market Ahead of Summit

    A growing rift has emerged within the European Union over climate policy, as ten member states call for urgent reforms to the bloc’s Emissions Trading System (ETS), warning that current rules risk undermining industrial competitiveness.

    In a joint letter addressed to the European Commission ahead of a key European Council summit in Brussels, leaders from Austria, the Czech Republic, Croatia, Greece, Hungary, Italy, Poland, Romania and Slovakia argued that the existing ETS framework poses an “existential risk” to strategic industries. The countries are urging a slower and more flexible transition to balance climate ambitions with economic stability.

    The ETS, the EU’s flagship carbon market, requires companies to pay for their emissions but currently provides a limited number of free allowances to ease the burden on industry. The signatories are calling for these free allowances to be extended beyond 2034 and for the planned phase-out, set to begin in 2028, to be slowed.

    They argue that rising energy prices, persistent inflation and the high cost of decarbonisation technologies are placing heavy strain on energy-intensive sectors such as steel, chemicals and manufacturing. Without adjustments, they warn, European industries could struggle to remain competitive globally.

    The letter also calls for measures to reduce volatility in carbon prices, enabling businesses to better plan long-term investments, and for action to prevent excessive electricity costs, which are increasingly linked to natural gas prices.

    The appeal comes at a politically sensitive moment, as EU leaders prepare to discuss energy security challenges exacerbated by geopolitical tensions, including the conflict in the Middle East. The debate highlights a broader struggle within the bloc to reconcile climate targets with economic resilience.

    European Commission President Ursula von der Leyen has defended the ETS, describing it as a cornerstone of the EU’s climate strategy and a key mechanism for driving investment into clean technologies. However, she acknowledged the complexity of reforming the system, noting that electricity pricing is influenced by multiple factors, including national taxes, grid costs and energy market structures.

    The push for reform is not universally supported. A separate group of countries, including Denmark, Finland, the Netherlands and Sweden, has called for the ETS to remain unchanged, arguing that it has been effective in reducing emissions, supporting cross-border electricity trade and generating significant economic benefits.

    With competing positions emerging, EU policymakers face mounting pressure to deliver a compromise. The ten countries have urged the Commission to accelerate its review of the ETS and present concrete proposals within weeks, rather than waiting until the scheduled review later in the year.

    The outcome of the upcoming summit is expected to shape the future direction of Europe’s climate policy and its impact on industrial competitiveness.

  • Satellite Data Suggest Polish Coal Mines Continued Methane Venting Despite EU Ban

    Satellite Data Suggest Polish Coal Mines Continued Methane Venting Despite EU Ban

    New satellite analysis indicates that several Polish coal mines may have continued venting methane in 2025 despite a ban under the EU Methane Regulation that took effect in January of that year. The findings raise concerns about enforcement gaps and the absence of penalty frameworks in Poland, the EU’s largest coal methane emitter.

    According to analysis cited in the report, 96% of methane plumes detected over onshore European energy infrastructure in 2025 were traced to Polish coal mines, making them the most frequent fossil fuel methane super-emitters in the bloc. Out of 22 coal mine drainage systems examined in Poland, five were observed venting methane during the year, even though routine venting from drainage systems has been prohibited since January 2025.

    The EU Methane Regulation requires operators to either utilize captured methane or flare it with at least 99% destruction efficiency. Venting is permitted only in cases of emergency, malfunction, or unavoidable maintenance, and operators must notify competent authorities within 48 hours. However, no national penalty framework has yet been adopted in Poland, despite a deadline of 5 August 2025 for Member States to define sanctions.

    Methane is a potent greenhouse gas, and coal remains the largest source of fossil methane emissions in the EU energy sector. According to UNFCCC data, EU coal mining emitted 783.6 thousand tonnes of methane in 2023, accounting for around 60% of energy-sector methane emissions. The International Energy Agency estimates that 62% of the EU’s coal mine methane emissions could be technically abated by 2030, with the vast majority originating in Poland.

    Satellite observations detected emission rates ranging from roughly 120 kg per hour to 7,560 kg per hour, with 19 plumes exceeding 2,000 kg per hour. Coking coal mines were responsible for most of the detected events, despite representing a smaller share of overall hard coal production. Analysts argue this highlights the need for stricter methane reduction targets for coking coal operations.

    The report also estimates that methane reportedly vented from Polish drainage systems in 2024, if captured and used, could have provided enough energy to meet roughly one week of heating demand for approximately 14.5 million Polish households. Polish coal mines reportedly utilized 70% of captured drainage methane in 2024, while 57,000 tonnes went unused and were emitted into the atmosphere.

    Experts stress that the effectiveness of the EU Methane Regulation depends on enforcement, independent emissions verification, and the introduction of dissuasive penalties. Recommendations include harmonized verification standards, combining satellite monitoring with on-site inspections, and setting meaningful penalty levels to incentivize compliance.

    Without these measures, observers warn, the regulation risks falling short of delivering the significant methane reductions required to meet EU climate objectives.

  • Slovenia Drafts Law to Close Velenje Coal Mine by 2033, Backed by €1.1 Billion Transition Plan

    Slovenia Drafts Law to Close Velenje Coal Mine by 2033, Backed by €1.1 Billion Transition Plan

    Slovenia’s government has begun consultations on a draft law to gradually close the Velenje coal mine and liquidate its operator, Premogovnik Velenje, marking a major step toward the country’s coal phase-out by 2033.

    The planned legislation is a cornerstone of Slovenia’s energy transition strategy, aligning with EU climate neutrality targets while ensuring a fair transition for affected workers and communities.

    Under the proposal, coal extraction and closure operations will run in parallel until 2033, allowing for a phased reduction of the workforce and continued heat supply for Saleska Valley residents. Post-closure, remediation and monitoring activities will continue until 2045.

    The bill includes provisions for employee retirement packages, severance pay, social programs, asset divestment, environmental rehabilitation, and long-term oversight of the mine’s shutdown.

    The government said the program will receive €1.1 billion ($1.3 billion) from the state budget through 2045 — roughly €50 million annually — supplemented by funds from company operations and asset sales.

    Premogovnik Velenje reported a net loss of €816,000 in 2024, narrowing from €5.7 million in 2023, with coal production dropping to 2.17 million tonnes from 2.44 million tonnes the previous year.

    The Velenje mine, Slovenia’s only active coal mine, supplies the nearby Šoštanj Thermal Power Plant, a key source of electricity and heating. Its gradual closure represents one of the country’s most significant industrial and environmental transitions to date.

  • Germany Launches €6 Billion Decarbonisation Program Including Carbon Capture Technology

    Germany Launches €6 Billion Decarbonisation Program Including Carbon Capture Technology

    Germany’s Economy Minister Katherina Reiche on Monday announced a €6 billion ($7 billion) funding initiative to accelerate industrial decarbonisation, marking the first inclusion of carbon capture and storage (CCS) technology in the country’s climate protection contracts.

    The program targets energy-intensive industries such as chemicals, steel, cement, and glass — key sectors facing mounting pressure to meet stringent climate goals while maintaining global competitiveness. Companies have until December 1 to register their projects for next year’s bidding process.

    Bidding is expected to begin in mid-2026, pending parliamentary budget approval and clearance from the European Commission under EU state aid rules.

    Building on last year’s climate contracts program, the new round expands eligibility to projects that incorporate CCS technology, which captures CO₂ emissions and stores them underground.

    Under the scheme, the German government will offer 15-year contracts subsidizing the costs of transitioning to low-emission production methods. The subsidies are designed to offset risks from volatile energy and carbon prices, helping industries adapt to cleaner technologies without losing competitiveness.

    Contracts will be awarded through competitive auctions, prioritizing projects that achieve the greatest emission reductions at the lowest cost per tonne of CO₂ saved. Companies receiving support will also have to meet binding emissions reduction milestones throughout the contract period.

    Industry groups have welcomed the inclusion of CCS and praised the government’s pragmatic, flexible approach. They emphasized that maintaining a balance between ambitious climate goals and the economic realities of high energy costs and industrial slowdown is crucial to securing Germany’s industrial base.

  • Lloyd’s of London Scraps Net Zero Policies Under New CEO Amid Global Backlash

    Lloyd’s of London Scraps Net Zero Policies Under New CEO Amid Global Backlash

    Lloyd’s of London has abandoned its net zero insurance commitments following pressure from political and industry figures, including former U.S. president Donald Trump. Patrick Tiernan, who became chief executive of the centuries-old insurance market earlier this year, confirmed that member insurers will no longer be bound by previous pledges to restrict coverage for high-pollution fossil fuel projects.

    Under the new direction, Lloyd’s members will only be required to comply with national laws in the jurisdictions where they operate, removing the climate targets introduced by former chief executive John Neal in 2021. Neal had aimed to steer Lloyd’s toward a full net zero transition by 2050, including restrictions on underwriting coal mines, coal-fired power stations, and Arctic oil sands projects.

    Tiernan defended the policy reversal, stressing that Lloyd’s must remain “apolitical” and aligned with government-set regulations rather than independently pursuing climate commitments. “The 2050 targets are government targets. We operate in multiple jurisdictions under different governments with different targets. We have to operate under the policies and the laws of where we operate,” he said.

    The decision comes as Trump’s election victory last November accelerated a rollback of climate initiatives in the U.S., with his administration promoting fossil fuel expansion under the slogan “drill, baby, drill.” Similar anti-net-zero positions have been taken by Britain’s Conservatives and Reform UK, citing economic risks of rapid green transitions.

    Environmental campaigners have strongly criticized the move, warning that Lloyd’s continued support for fossil fuel projects undermines efforts to combat climate change. However, Lloyd’s said its role is to enable insurers to operate freely within legal frameworks while supporting governments in shaping energy strategies. A spokesperson stated: “Our aim is to support whatever energy mix individual governments determine is in their jurisdiction’s best interests while enabling managing agents to operate at the vanguard of new energy technologies.”

  • Euromines President Stresses Balance Between EU Climate Goals and Industrial Competitiveness

    Euromines President Stresses Balance Between EU Climate Goals and Industrial Competitiveness

    At the Strategic Dialogue on Steel, hosted by European Commission President Ursula von der Leyen, Euromines President Jan Moström (LKAB) underscored the need to balance EU climate ambitions with industrial competitiveness. Speaking at the event, Moström highlighted key priorities for ensuring a sustainable and resilient steel sector in Europe.

    He emphasized that electric arc furnace (EAF) steelmaking powered by low-carbon electricity is the future of decarbonization. To build resilient value chains, he stressed the necessity of combining scrap and direct reduced (DR) pellets, while also acknowledging the scarcity of high-grade iron ore.

    Moström also called for a robust Omnibus permitting framework to unlock sustainable raw materials and boost renewable energy capacity. Additionally, he urged the EU to implement an Affordable Energy Action Plan, advocating for electricity market reform to curb volatility and attract investment.

    For Europe’s clean industrial future, securing affordable, fossil-free electricity and reliable raw materials is essential to maintaining a competitive and resilient minerals mining industry.

  • G7 Nations Set 2035 Deadline to End Unabated Coal Use

    G7 Nations Set 2035 Deadline to End Unabated Coal Use

    In a significant move towards combating climate change, the Group of Seven (G7) nations declared on Tuesday their commitment to terminating the use of “unabated” coal by 2035. This resolution, reached after deliberations among energy, climate, and environment ministers in Turin, Italy, marks a breakthrough in G7 negotiations that had previously stalled over several years. The communiqué released following the talks stipulates the intention to “phase out existing unabated coal power generation in our energy systems during the first half of 2030s.” However, by specifying “unabated” coal, the agreement offers flexibility for countries to continue employing this fossil fuel post-2035 if they implement measures to capture carbon emissions before release into the atmosphere. Furthermore, the accord allows countries the option to adopt a timeline aligned with maintaining a limit of 1.5°C temperature rise, in accordance with their net-zero pathways. Several G7 members, representing major economies in the developed world, have made substantial progress in reducing coal dependency. Notably, the UK, Italy, and Canada generate less than 6% of their electricity from coal, while France relies minimally on it. Conversely, coal still constitutes a significant portion of electricity generation in Japan (32%), Germany (27%), and the US (16%), according to data from the think tank Ember. This announcement follows closely on the heels of the US Environmental Protection Agency’s unveiling of new regulations mandating coal-fired power plants to either capture the majority of their climate pollutants or cease operations by 2039. Italian Environment and Energy Security Minister Gilberto Pichetto Fratin defended the agreement, emphasizing that the language assures a phased reduction of coal usage across G7 nations while safeguarding economic and social stability. Although some climate experts view the agreement positively as a step forward after years of impasse, others criticize the 2035 deadline as insufficient for limiting global warming to 1.5 degrees Celsius. Climate Analytics contends that to achieve this goal, all coal usage in G7 countries must cease by 2030 at the latest, with natural gas use ending by 2035. Jane Ellis, head of climate policy at Climate Analytics, underscores the necessity for a swifter transition to renewables, particularly highlighting concerns regarding ongoing investments in domestic gas facilities by G7 governments. Notably, while the resolution addresses coal, it omits any mention of a phase-out plan for gas, despite its significant contribution to CO2 emissions. The G7’s leadership in climate policy often influences broader international efforts, including those within the G20, where decisions impact major emitters and fossil fuel producers alike.