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Emily Wang Fujiyama and Huizhong Wu, The Associated Press
China’s Ministry of Commerce has announced that it is countering US tariffs with measures of its own, including a 15% tariff on coal and liquified natural gas (LNG) imports and a 10% tariff on crude oil, agricultural machinery and certain cars, the Associated Press reports. US president Donald Trump has ordered a 10% tariff on China, which is set to go into effect from today, and the US president plans to speak with Chinese president Xi Jinping in the “next few days”, the article explains. The Financial Times says that among China’s other retaliatory trade measures are “additional export controls” on “25 rare metal products”. China has announced export controls on “molybdenum and indium-related items” – materials used to make low-carbon technologies including wind turbines – and other critical minerals, effective from 4 January, the Chinese communist party-affiliated newspaper People’s Daily also reports. The Times explains that China “controls much of the world’s supply of such rare resources that are critical for the clean energy transition”. It also notes that oil prices dropped after China’s tariff announcement. NDTV explains that while the US supplied around 6% of China's LNG imports last year, China “imports little coal from the US”.
The People’s Daily, covering a government statement, says the US’ tariffs on Chinese goods are “not only unhelpful in solving [the US’] own problems, but also damaging to normal economic and trade cooperation between China and the US”. Separately, in an analysis of the appointment of Chris Wright as US energy secretary, economic news outlet Jiemian says “traditional energy sources such as oil and gas have become one of the US’ trump cards in the exercise of global hegemony”. The Wall Street Journal reports that, “according to people in both capitals familiar with Beijing’s thinking”, China’s future moves to counter US tariffs may include “an offer to make more investments in the US – in sectors such as batteries for electric cars”.
Separately, Reuters reports that the previously announced US tariffs on Mexico have been paused for a month after Trump reached a deal with Mexican president Claudia Sheinbaum, requiring her nation to further reinforce its northern border to help prevent drug trafficking. This has seen some sectors, notably car makers, “recover from early losses” linked to the new tariff announcements, the newswire says. The Financial Times reports that Trump has also delayed planned tariffs on Canada “just hours before they were due to come into force”. Canada similarly agreed to further reinforce its borders, the newspaper says.
Finally, the Financial Times reports on comments from Lord Adair Turner that China, the EU and the UK should form a coalition of “the world apart from the US” on climate action, following the retreat of the Trump administration from its climate commitments. Turner, who is the head of the Energy Transitions Commission – an alliance of companies focusing on a net-zero transition – tells the newspaper that more collaboration on low-cost green technologies would be needed between “the west” and China.
Lisa Friedman, The New York Times
More than 1,100 US Environmental Protection Agency (EPA) employees have been warned by Trump’s new administration that they could be fired at any time, according to the New York Times. The warning applies to staff members who were hired in the past year and therefore have probationary status, including people working in climate change and enforcing environmental laws, the newspaper explains. It notes: “Many of those employees were encouraged to join the EPA under the Biden administration to rebuild the agency, which had been depleted during president Trump’s first term.”. The notice, sent out via email, applies to many people working on relatively new projects, such as remediating toxic sites and funding clean energy projects, the newspaper continues. NBC News reports that the email to EPA employees “comes during a strong push by the Trump administration to downsize the government”.
Meanwhile, the Senate has confirmed “fracking executive” Chris Wright to be Trump's energy secretary, Reuters reports. The article notes that Wright has expressed scepticism in the past about the threat posed by climate change, and about the ability of top-down government efforts to curb it. Wright will step down as head of Liberty Energy, once confirmed, it adds. Politico says senators voted 59-38 to confirm Wright, “including support from some Democrats”. It says he has committed to pursuing an “all-of-the-above energy strategy”, covering all kinds of energy technologies.
Industry executives have warned that Trump’s recently announced restrictions on renewable energy “risk sparking an electricity crisis in the US, driving up costs for consumers and handing China an edge in the global artificial intelligence race”, according to the Financial Times. It notes that during his first week in office, Trump ordered a moratorium on offshore wind approvals, as well as reviews of existing wind leases and a pause on hundreds of billions of dollars of incentives for low-carbon energy. The Guardian has a piece titled “how Trump is targeting wind and solar energy – and delighting big oil”.
Finally, the Los Angeles Times has an article about how Trump’s order to release water from two dams in California “didn’t help farms or Los Angeles” following the fires that struck the region. Instead, it says the order likely wasted valuable water needed for agriculture.
Linda Lew, Bloomberg
China’s electric vehicle (EV) manufacturers are enjoying a “busy January” as the “extension of trade-in subsidies helped underpin sales during the usually quieter lunar new year holiday”, Bloomberg reports. The news outlet adds that BYD’s overseas sales climbed to a record last month “despite worsening trade tensions between China and the EU and US”. The Hong Kong-based South China Morning Post (SCMP) reports that Chinese companies are continuing to invest in manufacturing plants in Morocco to “target lucrative European and North American markets” while “circumvent[ing] tariffs and other import restrictions”. The state-run newspaper China Daily publishes an opinion article by two representatives of the European Institute at the Chinese Academy of International Trade and Economic Cooperation, saying that China and the EU “must fully leverage their respective internal market strengths to spearhead…rule-making in green and low-carbon sectors”.
Elsewhere, state news agency Xinhua reports that the Ministry of Ecology and Environment (MEE) outlined four key tasks to strengthen construction of a “beautiful countryside”, including “improving rural ecological environment quality” and “promoting green and low-carbon agricultural development”. The state-run newspaper China Daily reports that China has added more than 1m hectares of wetlands since 2012, which is “equivalent to restoring an area the size of London every two years”, adding that wetlands are important for “providing critical services such as water purification, flood control, and carbon storage”.
Deutsche Presse-Agentur
The German state-owned energy company Sefe has signed a memorandum of understanding with the Saudi company ACWA Power to deliver 200,000 tonnes of “green” hydrogen starting in 2030, reports Handelsblatt. It notes that ACWA Power will act as “a leading developer, investor, and operator of green hydrogen and green ammonia production plants”, while Sefe, as co-investor and main customer, will leverage its position as “one of Europe’s largest energy traders” to market “green” hydrogen to German and European customers. It says Sefe has already made other agreements regarding hydrogen imports with the Brazilian energy producer Electrobras and Norwegian company Equinor.
Meanwhile, ZDF reports that all seven German political parties running for office in the federal elections want to reduce the electricity tax to the minimum set by the EU under competition law. The Free Democratic Party (FDP) wants to “abolish” the electricity tax at the European level, it notes. EurActiv reports that high energy prices are “repeatedly cited as one of the main reasons for Germany’s declining economic competitiveness”. In related news, Ntv reports that the centre-right CDU/CSU bloc plans to repeal the German heating law, which is designed to gradually increase the use of renewable energy sources for heating homes, should they win. However, it says economy minister Robert Habeck warns that this could “create uncertainty for citizens and the economy”.
Finally, Bild reports that Alice Weidel, the candidate for chancellor from the far-right Alternative for Germany (AfD), wants “to tear down all wind turbines in Germany.” The outlet notes that such a move “would drastically reduce electricity supply, compromise energy security, and cause prices to skyrocket”. It explains that dismantling 31,399 wind turbines generating 33% of Germany’s electricity would cost up to €10bn.
Connor Gillies, Sky News
Juergen Maier, the chair of GB Energy, tells Sky News that it could take 20 years to deliver the UK Labour government’s pledge of 1,000 jobs for the Scottish city of Aberdeen. Labour hopes that GB Energy, a government-owned investment body, will help workers move from the oil and gas industry, the article explains. The Guardian reports that Maier said the organisation would create 200-300 roles in Aberdeen – the “the oil and gas capital of Europe”, where it is based – over the next five years. It also notes that Maier “refused to put a date” on when GB Energy would bring down energy bills. Specifically, it says he “could not give a fixed date on when energy bills would be cut by up to £300 as a result of its activities”. The Times says Maier pointed out that there would also be thousands of jobs created outside of Aberdeen in the wider renewable energy supply chain, driven by the activities of GB Energy. The interview with Sky News has triggered a wave of reporting by other UK media outlets of Maier’s comments, including the MailOnline describing him as “dodg[ing]” the question when asked about the timescale for GB Energy cutting bills. The Daily Telegraph includes critical remarks from the Scottish National Party and unions. The Sun frames the episode as a “climbdown” by the government, describing the pledge to create jobs in Aberdeen as “[energy secretary] Ed Miliband’s promise of 1,000 green jobs”. Scottish first minister John Swiney has “accused” the UK government of “hoodwinking” the public over GB Energy’s ability to bring down bills, according to the Scotsman.
Meanwhile, in a frontpage story, the Guardian reports that UK prime minister Keir Starmer is “facing a growing internal backlash” from Labour MPs over the potential approval of the proposed Rosebank oilfield. This comes “after Treasury sources indicated [chancellor] Rachel Reeves was likely to give it her backing”. The fossil fuel project was given approval under the previous government in 2023, but was ruled unlawful last week, the newspaper explains. Nevertheless, Reeves is understood to support a new application for environmental consent, with the argument that it would not violate Labour’s manifesto pledge to no further oil and gas licences. Separately, the UK is seeking legal advice over whether it can withdraw $1.15bn of taxpayers’ money from a controversial $20bn LNG project run by TotalEnergies in Mozambique, according to the Financial Times. UK Export Finance has committed to providing loans and guarantees for the project, but it has since been rocked by political instability and terrorist violence, the article explains. A Times article considers how Starmer is hoping for a “Brexit reset” with the EU, including linking the UK and EU emissions trading schemes. It says: “[F]or the moment, the EU is rejecting such a plan and will only align on emissions trading if Britain follows European law and standards, with oversight by Brussels.”
Caitlin Fitzsimmons, The Sydney Morning Herald
The heavy rain that has caused “massive flooding” in north Queensland, Australia, over the weekend was “likely to have been exacerbated by climate change, with scientists linking it to a prolonged marine heatwave in the Coral Sea”, according to the Sydney Morning Herald. The rainfall, which has now eased off somewhat, was extreme “even by the standard of wet season in the tropics”, the newspaper explains. It cites one researcher who says an attribution study would be needed to demonstrate the link to climate change, but noted that temperatures in the nearby Coral Sea were 1-2C warmer than average in the lead-up to the event. Steve Turton, an adjunct professor of environmental geography at Central Queensland University, writes in the Conversation that, in recent years, “we have seen a tendency for these [heavy rain] systems to stall, sitting in place over or near land and dumping huge volumes of rain”. ABC News reports that the “small but critical” Bruce Highway bridge north of Townsville has collapsed amid the flooding, cutting off a supply route for regions hit hard by the disaster. The floods have caused “incredible” damage to homes and businesses in north Queensland, where the Herbert river reached heights not recorded since a “storied” 1967 flood, according to the Guardian.
In other Australian news, the Guardian reports on pushback by energy experts to the right-wing opposition leader Peter Dutton’s claims that his plan to slow down the rollout of renewables in favour of nuclear power and fossil fuels would cut energy bills. The Guardian also has an explainer of the plans set out by Dutton’s Coalition, noting that “independent analysis” has demonstrated that the strategy would lead to an extra 1.7bn tonnes of CO2 being emitted by 2050. |
