The European Union announces 100 billion climate and clean energy investment while globally oil use falls - for the first time ever - in the overall energy mix
Twelve weeks down, 200 to go in the US, however most of the rest of the world has got on with tackling climate change, here’s some of the moves
Despite backwards moves in the US, things are moving forwards in other areas of the global climate front! The EU is stepping up into a renewed global climate leadership role as it announces a whopping €100bn ($105bn) into an Industrial Decarbonization Bank which is there to support a range of decarbonization projects:
The EU announced its goal of climate neutrality by 2050 back in 2020, but now it’s putting its money where its mouth is, with new legislative direction and several financial commitments. It’s in part a response to the US’ Inflation Reduction Act, and takes a page out of that playbook by streamlining major reporting and carbon trade regulations, adding in new incentives, and encouraging private investment. (Source, CTVC)
(Image - The European Investment Bank headquarters in Luxembourg. Pic: Flickr/Steintec, Source)
While in Europe (but sadly not the EU, the United Kingdom announced that its 2024 carbon emissions fell by 4% relative to 2023. Plus the government numbers noted this means emissions are now 54% less than where they were back in 1990. This is because of a range of factors including lots of new clean power projects (for example here) and a lot of great grass-roots projects, for example in the community energy sector;
Thrive has formed a strategic joint venture with the UK’s leading social impact investor, Better Society Capital, bringing together £40 million for community-owned wind and solar projects across the UK. (Source)
(Image, a wind turbine generates clean energy for people in the South West of the UK. Author's own image.)
This kind of change is being repeated from project to project, nation to nation and when added up globally, the worldwide rise in renewables and the shift to EVs means that we’re now seeing the peak of oil use as a percentage of the total energy mix, a trend that will only increase on to the actual peak of use soon too:
EV sales surged by over 25% in 2024, now making up 1 in every 5 cars sold globally, and this had a notable impact on oil demand, which grew modestly, at just 0.8%. Oil notably fell below 30% of total energy demand for the first time ever, 50 years after it peaked at 46%.
It is not just that the rest of the world is getting on with tackling climate change, it's that they are taking commercial advantage of the US retreat. Here’s a glimpse into the European Union’s thinking:
Notably, it is also stepping up to fill the vacuum left by the US' pullback on climate under President Trump. Trump’s early moves — exiting the Paris Agreement, halting IRA funding, and drafting tariffs — are countered by the Commission’s new Clean Trade and Investment Partnerships — free-trade agreements that support the EU’s strategy with better access to global raw materials, clean energy, and climate tech. (Source, CTVC)
As noted, the EU’s plans are modeled on the successful US law, the Inflation Reduction Act passed by Biden. This was the largest climate law in the world and so successful has it been, that even some Republican politicians see its value:
"Twenty-one House Republicans have signed a letter urging the GOP to uphold the Inflation Reduction Act’s clean energy tax credits in their budget bill, warning that gutting the credits would “risk sparking an energy crisis in our country, resulting in drastically higher power bills for American families.” That’s three more than signed a similar letter during the last Congress." (Source, Heatmap AM, 10th March 2025)
An AI Shift?
I’ve written before about the (understandable) worry about AI and its power consumption going forwards. Now, one of the key ways you can know where people think the demand for power is going, is via where they actually put their cash. There was a recent IPO for a power company, CoreWeave, which aimed to capitalise on the expected rush for energy to power the upcoming AI world and, well, that’s not quite how it happened:
Last week, the CoreWeave IPO faltered: The company raised only $1.5bn at $40/share — well below its $47–$55 target range — giving it a $20bn valuation. Even then, shares struggled to open, with investor appetite cooling fast.
Added to that, I’m seeing more stories about AI being used to develop new technology (such as this for example, helping with fusion development) makes clear it a development we need to understand more about. On this theme, commentator Leigh Phillips argues the progressive left should be seeking to develop this thread, not retreat from it;
The left should be calling for government intervention to ensure decarbonization of data centers for AI. It should demand that we direct machine-learning research to prioritize the solving of grand scientific challenges such as prediction of protein folding instead of bad fantasy art fabrication and plagiarism. But instead, the most popular leftwing tech podcast calls for degrowth of generative AI and data centers due the latter’s carbon intensity.
I’ll continue to report on events here going forwards.
On Making Connections
Finally there is an excellent post about 20 lessons on how to navigate a world moving towards tyranny. I don’t intend for this this newsletter to cover this area, as others do it better than I can, worthy topic though it is. However I will note that a couple of the points echo the points in our own Points of Action page.
The one below echos my point 7 - Support an independent media outlet!
11. Investigate. Figure things out for yourself. Spend more time with long articles. Subsidize investigative journalism by subscribing to print media. Realize that some of what is on the internet is there to harm you. Learn about sites that investigate propaganda campaigns (some of which come from abroad). Take responsibility for what you communicate with others.
Also the next point quoted echoes my point 1 - “Politics, politics and more politics! If there is any election - local or national - can you help elect better people? Yes, you can!” (also kinda echos Points 5 and 6 too)
13. Practice corporeal politics. Power wants your body softening in your chair and your emotions dissipating on the screen. Get outside. Put your body in unfamiliar places with unfamiliar people. Make new friends and march with them.
More Stupid stuff from the EU