Several publications report that the EU is planning to overhaul rules on state aid amid fears US president Joe Biden’s landmark climate bill, the Inflation Reduction Act, risks “sparking an exodus of cash from Europe”. According to the Daily Telegraph, EU president Ursula von der Leyen said on Sunday that the bloc had to “simplify and adapt” state aid rules in response to the IRA, telling journalists: “Competition is good … but this competition must respect a level playing field.” BBC News reports that EU criticism of the IRA is “raising fears of a trade war”. It explains: “Under the IRA, American consumers will get incentives to purchase new and second-hand electric cars, to warm their homes with heat pumps and even to cook their food using electric induction. US President Joe Biden has called it the most ‘aggressive action’ his country has taken to tackle the climate crisis. But European allies perceive it as anti-competitive and a threat to European jobs, especially in the energy and auto sectors.” The Financial Times reports that, in addition to von der Leyen, “other key EU figures have also called for a collective response to the US measures”. It adds: “European Council president Charles Michel, who represents the leaders of the EU’s 27 member states, told the Financial Times that there should be a renewed debate about common financing.” Reuters reports that top EU officials plan to “complain loudly” to their US counterparts about the issue at a trade meeting held today. It comes as a separate Financial Times story reports that French president Emmanuel Macron warned that the US risked “fragmenting the west” with its climate plans, during the first day of his state visit to the country. The following day, the Financial Times released a story saying Biden had promised to amend the bill to add provisions for “US allies”, a move hailed as a “breakthrough” by France. Bloomberg and Politico also report on trade conflict between the US and Europe over the IRA.

In other European news, the Financial Times reports that EU members have agreed to “implement a $60 ceiling on global purchases of Russian oil after Poland dropped its objections to the long-debated deal aimed at denting the Kremlin’s fossil-fuel revenues”. It adds: “Warsaw had delayed agreement on the cap after demanding a lower ceiling to further erode Moscow’s income. Its backing means the bloc will have the initiative in place before December 5, when a ban on imports of Russian seaborne oil into the EU comes into force.” Reuters also has the story. In its coverage, Politico describes the ban on imports of seaborne Russian crude as “one of the EU’s toughest sanctions yet”. Elsewhere, the Financial Times reports that the EU is looking to exclude banks and funds from sustainability rules. A separate Financial Times story says that EU countries cut gas demand by a quarter in November.

Countries are gathering this week to discuss how to halt and reverse global biodiversity loss, a “crisis that threatens humanity”, the Press Association reports. It adds: “The Chinese-chaired COP15 global biodiversity conference kicks off in Montreal, Canada this week, and campaigners have called for a deal similar to the historic Paris Agreement secured in 2015 to tackle climate change. While the collapse of nature may be the less-well known sister problem to the climate crisis, the figures showing what people are doing to the planet are no less stark.” A separate Press Association article explores what COP15 is and why it matters. The Guardian also reports on the opening of COP15, noting it comes “after more than two years of pandemic-related delays and just over two weeks since the end of the COP27 climate meeting in Egypt.” It adds: “There is growing hope that the summit will not only bring about a plan to save the natural world but could also begin to mend the deep rifts between the co-hosts, China and Canada.” Separately, the Guardian reports that campaigners are urging Australia to take a leadership role at the summit. China Dialogue explores “six key issues at stake” at COP15. China Daily publishes an “exclusive dialogue” with China’s COP15 president. Carbon Brief has published an interactive guide exploring what different countries want from the global deal for nature, in addition to explaining the key issues at play at COP15.

Approving a new coal mine in Cumbria would send “completely the wrong signal” to other countries on climate change, UK Conservative MP and COP26 president Alok Sharma has warned, the Observer reports. The UK government is this week due to make a decision on whether to approve plans for the new coking coal mine. The mine had received council approval before being called in for review by the government in 2021. In a tweet, Sharma said: “Over the past three years the UK has sought to persuade other nations to consign coal to history, because we are fighting to limit global warming to 1.5C and coal is the most polluting energy source. A decision to open a new coalmine would send completely the wrong message and be an own goal. This proposed new mine will have no impact on reducing energy bills or ensuring our energy security.” The Independent also reports on Sharma’s tweet.

Elsewhere, the Times reports on new polling finding two-thirds of Conservative voters think the ban on onshore wind should be lifted and would support a farm near their home. It comes amid a Tory rebellion aiming to force the prime minister to repeal the ban, first introduced by Conservative leader David Cameron. In contrast, the Daily Telegraph carries the views of a small grouping of Tory MPs, many who have a long history of being climate sceptics, who want the “ban” to remain in place. The i newspaper reports that even existing wind farms are at risk from disappearing from 2023 due to a “planning quirk”. The Daily Telegraph speaks to people that have cut their energy bills by installing their own wind turbines.

Similarly, Bloomberg reports on how small businesses have cut costs by installing “tiny wind farms”. It comes as an energy firm boss tells BBC News that it will “take years” for bills to return to pre-Russia war levels. In addition, the Times reports on comments from the head of the investment manager Foresight Group, who has warned that the government’s windfall tax on power generators will deter investment in wind and solar farms. The Independent reports on analysis finding closing a “loophole” in the windfall tax on oil and gas companies could save households £336 a year. Separately, the Independent reports on comments from the chief of the Confederation of British Industry (CBI), who have warned that Rishi Sunak is “going backwards” on green growth. In addition, the Guardian reports that plans to link the UK to a huge solar and wind farm in the Sahara desert have been delayed by a year.

Time magazine’s Justin Worland says “China today makes more than 80% of the world’s solar panels, and Covid lockdowns have stifled the country’s ability to meet demand for that, and other clean energy technologies”. He writes: “Looked at from a long-term perspective, the disruption could alter the country’s five-year plan for economic growth and low-carbon development, which in turn feeds into its longer-term decarbonisation goals.” He continues:

“In the short term, higher oil prices discourage burning of the fossil fuel, in theory marginally reducing consumption, but…rapid variations in oil prices make it difficult to plan a smooth transition away from fossil fuels, and show clearly the value of having locally sourced renewable energy delivered via a long-term contracted price – which would be unaffected by lockdowns.”

Separately, the state-run industry newspaper China Energy News has published an analysis of a review of the country’s energy demand in 2022 and outlook in 2023, by State Grid Energy Research Institute (SGERI), a thinktank owned by the State Grid, a state-owned electric utility corporation. It concludes that, in 2022, with regard to electricity demand, the policy to stabilise growth has “continued to take effect” and the economic growth rate has “continued to pick up in the fourth quarter”. It is “expected” that the overall balance of national power supply and demand this winter and next spring is “relatively tight and the power supply and demand in east China, central China and southwest China are tight”, the article adds. In 2023, “uncertainties will remain” in the international environment and with Covid-19, so the “risk of global economic downturn will increase”, “the momentum of external demand will weaken”, and it will be “difficult to maintain rapid growth of China’s exports”, the article says, adding that “the supply and demand of coal will be basically balanced, and coal prices will gradually enter a reasonable range”.

In other China news, Caixin Global says that “while the adoption of the so-called distributed solar power is growing, challenges remain for the power market and system to accommodate these sporadic new sources of energy”. Finally, the state-run Global Times newspaper carries a comment piece by Marco Fernandes, a researcher at the Tricontinental Institute for Social Research, who writes: “The US and Europe continue to try and construct a narrative that shifts the blame to China. This is indeed the biggest emitter today (followed by the US). But blaming China is wrong for a few reasons.”

German economy minister Robert Habeck began a five-day trip to Namibia and South Africa yesterday as “part of a push to secure new energy resources” for Germany, reports Bloomberg. In Namibia, Habeck will sign an agreement for the production of green hydrogen because the country “has very great advantages in terms of location compared to Europe”, the outlet quotes the minister. Habeck has also recently travelled to Canada, Qatar and Norway in an attempt to secure “liquefied natural gas” (LNG) resources, the news notes. Deutsche Welle adds that the Namibian government launched a new “green hydrogen and derivatives strategy” at COP27 aimed at delivering up to “12 tonnes” of green hydrogen annually by 2050. In addition, Reuters reports that Germany plans to develop a domestic 1,800-kilometre hydrogen energy pipeline network by 2027 “with state participation”.

Meanwhile, Die Zeit reports that Habeck has emphasised the security of the gas and electricity “price breaks” introduced in Germany “to cushion the sharp rise in costs” for households and companies from possible exploitation by suppliers. If suppliers consider “testing out a grey area”, the intended abuse clause in the law is “a clear instrument” to take action against it, notes the outlet. Nevertheless, Tagesschau reports that the opposition, Germany’s Left party, has previously criticised the planned protection as “insufficient” and called for stricter controls.

Finally, Der Spiegel reports that the general secretary of Germany’s ruling Social Democratic party (SPD), Kevin Kühnert, has condemned the actions of “Last Generation” climate activists as “too drastic”. When asked if he understood their actions, he replied in an interview with Die Zeit: “What fundamentally bothers me is the absolutism with which the climate activists proceed.”

The Times reports that the number of tweets mentioning the term “climate scam” have surged following Elon Musk’s takeover of Twitter. It reports: “Analysis for the Times has also revealed that 2022 was the worst year for content sceptical of climate change since the social media giant was founded…While there has always been some climate scepticism on Twitter, the nature and presentation of misinformation today is new. Users searching for the term ‘climate change’ are currently served #climatescam above other hashtags including #climateemergency and #climatecrisis.” A senior UN official and US-based climate scientist Prof Katharine Hayhoe are among those raising concerns, the story adds.

In a guest essay for the New York Times, Jason Bordoff, a former senior director on the staff of the US National Security Council and a former special assistant to Barack Obama, responds to accusations that US domestic climate measures pose a threat to Europe (see above). He says: “The new law does have implications for Europe. It will, for instance, make it cheaper to produce low-carbon fuels, such as hydrogen and ammonia, in the United States than in nearly any other place, according to the consultancy BCG. Europeans are concerned this may encourage companies to shift investment plans to the US or relocate energy-intensive industries, such as steel, to where the cheap low-carbon energy is. It is understandable that Europeans are worried about a wave of deindustrialisation. But the culprit is Europe’s lack of competitiveness without cheap Russian gas, not America’s new climate law. After years of criticising the United States for being a laggard on climate action, it is puzzling to see European leaders condemning the country for investing too much in clean energy.” Similarly, Financial Times commentator Martin Sandbu says “Europe should not protest too much on energy”. A comment piece by Daily Telegraph assistant editor Jeremy Warner says the UK “need[s] something similar to Biden’s curiously named ‘Inflation Reduction Act’”. In addition, a Reuters analysis says Europe “can’t look to US shale to fill any OPEC gap”.

Elsewhere, many European titles co-publish a special investigation into where green investments are spent. The investigation is a “cross-border data project” by Follow the Money and Investico.

In addition, a blog post by Sky News economics editor Ed Conway explores how the UK’s electricity grid is “creaky”.

An editorial in the Guardian urges an ambitious outcome from the COP15 biodiversity summit beginning this week in Montreal, Canada. It says: “There is no coming back from extinction, so Montreal is an opportunity that the planet cannot afford to miss. But a paradigm shift is required to make progress. For too long, governments have treated biodiversity as a secondary and separate issue, focusing their energy on global heating. In reality, as images of polar bears on shrinking ice illustrate, the two crises overlap.” It comes as the Times Red Box carries an op-ed by Conservative MP Tracey Crouch, who says: “We are sending a brilliant team of ministers to Montreal to represent the UK in this vital summit. We should send them with the strongest hand possible because we all have a stake in the outcome. Much that we rely on — including food, energy and water — depends on nature thriving. I urge ministers to take these steps to continue the UK’s environmental leadership at home and overseas.”

Crossing a tipping point in the Amazon would cause economic losses of $257bn in Brazil, Peru, Colombia, Bolivia and Ecuador by 2050, according to new research. The authors use an “integrated economic-environmental modelling platform linked with spatial land use-land cover change and ecosystem services modelling” to determine the impacts and trade-offs of crossing, or averting, a tipping point in the Amazon. The study “provides the first approximation of the economic, natural capital and ecosystem services impacts of a tipping point”, the authors say. Policies to avert a tipping point – including reducing deforestation and improving fire management – would generate around $339bn in additional wealth and a $30bn return on investment, the study adds.