The European Union will today “unveil its most ambitious plan yet to tackle climate change, aiming to pull ahead in the race among the world’s biggest economies to turn far-off green goals into concrete action this decade”, reports Reuters. It continues: “The European Commission, which drafts EU policies, will set out in painstaking detail how the bloc’s 27 countries can meet their collective goal to net reduce greenhouse gas emissions by 55% from 1990 levels by 2030.” The “Fit for 55” package has dubbed the EU’s “man-on-the-moon moment” by commission president Ursula von der Leyen, says the Financial Times, but “risks a backlash from poorer EU countries and some industries which argue that the pace of change and increased regulations will become a financial burden”. (Politico reports on the “raised eyebrows” over the “Fit for 55” name, with one commentator suggesting it sounded like “a suburban yoga studio”.) The FT continues: “The centrepiece of the EU’s master plan is to expand the emissions trading scheme, a system that makes companies pay for the cost of polluting. Brussels wants to go further to include emissions from the car industry and from heating buildings to quicken the pace of decarbonisation.” Frans Timmermans, the commission’s executive vice-president in charge of green policy, called the package “arguably the biggest transformational operation in living memory”, the paper notes. Reuters has a “factbox” piece looking at what the plan includes.

The New York Times says that “most contentious element” is a proposed “border carbon adjustment tax”, which would “impose tariffs on the greenhouse gas emissions associated with products imported from outside the European Union and, in effect, would protect European companies from goods made in countries with less-stringent climate policies”. This “could not only shake up global trade and invite a dispute over protectionism in the World Trade Organization, it could also create new diplomatic fault lines ahead of international climate talks taking place in Glasgow in November”, the paper says. E&E News, via Scientific American, takes a closer look at the carbon border adjustment. Bloomberg says that “it’s unlikely” that the full package will be “implemented exactly as envisioned” with the proposals set to “kick off several years of heated debate with member states over how to turn the measures into law”. “Still,” the outlet adds, “the Fit for 55 package goes further than any other government in working out exactly what needs to be done to pivot sharply away from fossil fuels. Its strategy could serve as a roadmap for others to decarbonise more quickly”. Politico looks at the potential “blowback” over the plan, noting: “Making it happen will impact the personal choices and bank accounts of Europeans of every class. The EU will demand changes to everything from the cars people drive, to how they heat their homes, whether they’ll be able to take a cheap flight on holiday, and even if their current jobs will exist in the new clean and green economy. Brussels is well aware that if it gets the balance wrong, the result could be a continent-wide political backlash.” Speaking before the launch to the Guardian and other European newspapers, von der Leyen “sought to assuage fears that the plan would trigger a rise in household energy bills and petrol prices”, the paper says. She said: “We will make sure households with small incomes get support for mobility, driving and heating.“ Finally, Reuters reports on von der Leyen’s interview with Germany’s Sueddeutsche Zeitung, in which she said that the EU plans to introduce an absolute cut-off date after which all manufacturers will have to stop producing combustion-powered cars.

In related news, Reuters reports that US treasury secretary Janet Yellen acknowledged “the use of carbon-pricing schemes such as a planned new European border levy but stressed such moves should take into account emission-cutting progress made in other ways”. In an interview with the newswire yesterday in Brussels, Yellen said: “A carbon tax or carbon pricing cap-and-trade is a very efficient way to go about addressing emissions reductions, but there’s nothing that requires countries to proceed in that way…And it’s very important to think through if a country adopts a carbon border adjustment, how it should treat countries that have also achieved environmentally-friendly production techniques, but through different means.”

The UK government’s long-awaited “transport decarbonisation strategy”, released today, says new technology will allow domestic flights to be emissions-free by 2040, and international aviation to be zero carbon by mid-century, reports BBC News. This amounts to the government telling the British public to “carry on flying”, the outlet says, adding: “The policy has been ridiculed by environmentalists who say the government is putting far too much faith in innovation.” The Times leads with the proposal for motorways to be “fitted with overhead electric wires” to create new “e-highways” that could charge battery-powered lorries on the move. The Independent reports that “Britain is to ban the sale of new petrol and diesel trucks by 2040”, noting that “a ban on the sale of new petrol and diesel cars and vans by 2030 was announced in November part of Boris Johnson’s 10-point climate plan”. (See Carbon Brief‘s coverage of the 10-point plan for more details.) Reuters reports the comments of transport secretary Grant Shapps, who said: “Decarbonisation is not just some technocratic process. It’s about how we make sure that transport shapes quality of life and the economy in ways that are good…It’s not about stopping people doing things: it’s about doing the same things differently.” Commenting on the plan, Times environment editor Ben Webster notes that “one detail that is still missing is what will replace the £28bn a year the Treasury collects in duty on petrol and diesel. Ministers are considering road pricing but are wary of a public backlash”. He also points out that the government’s “£27bn road-building programme seems at odds with the pledge to make public transport, walking or cycling a ‘natural first choice’” and “it seems airports will be allowed to expand although the industry has no credible plan to switch from kerosene to green fuels”.

Meanwhile, the Guardian reports on a 70,000-word manifesto by the UK cross-party Environmental Justice Commission that argues for a “people’s dividend” worth billions of pounds as part of the national drive to hit targets for net-zero carbon emissions and the restoration of nature. Among the measures put forward are free public transport, more green spaces and money for improving homes, the paper says. Green Party MP Caroline Lucas, co-chair of the commission behind the report, tells the Independent: “We can’t afford to fail in this endeavour, but we will not succeed unless the plans we make are fair to everyone and make the UK fairer for all.”

In other transport news, the Guardian reports on analysis by the consumer group Which? that finds train fares on popular UK routes are 50% more expensive than plane fares despite rail journeys causing 80% lower CO2 emissions. The analysis examined 10 routes within the UK and found that eight were cheaper by plane, the paper says. This left passengers face a “near impossible” choice between low ticket prices and climate-friendly travel, the group warned. The Times, Daily Telegraph and i newspaper all have the story. Meanwhile, the Guardian reports that “ministers are resisting calls to reduce VAT on green home improvements, despite pleas from MPs and builders, as they prepare to set out a national strategy for cutting greenhouse gas emissions from home heating”.

Finally, in UK news, the i newspaper reports that government ministers “face the potential embarrassment of being locked in a parliamentary battle over key environment laws during the crucial COP26 climate change summit”. The outlet explains: “Peers have warned they will hold up the Environment Bill ahead of the event in Glasgow unless the Government makes concessions in key areas. It raises the prospect of the UK trying to convince countries around the world to sign up to ambitious environmental targets while battling to get key reforms through its own Parliament.”

The International Energy Agency (IEA) says that rising oil prices could help speed climate action by accelerating the shift to electric vehicles, but could come at the expense of the economic recovery from the Covid-19 pandemic, the Guardian reports. In its monthly oil market report, the IEA says that global demand for crude surged by an average of 3.2m barrels a day (b/d) in June compared with the previous month, but the return of oil production has failed to keep pace, triggering a steady rise in market prices, the paper explains. As a result, “oil prices, which climbed by two-thirds this year to highs of $77 a barrel earlier this month, could climb higher and lead to market volatility unless big oil producers pump more barrels”, it says. The IEA explains: “While prices at these levels could increase the pace of electrification of the transport sector and help accelerate energy transitions, they could also put a drag on the economic recovery, particularly in emerging and developing countries.“ The agency’s report also warns that oil prices will be volatile until differences were resolved among members of OPEC+, which groups the Organisation of the Petroleum Exporting Countries, Russia and other oil producers, says Reuters. The IEA says: “Oil markets are likely to remain volatile until there is clarity on OPEC+ production policy. And volatility does not help ensure orderly and secure energy transitions – nor is it in the interest of either producers or consumers.” The Times also has the story. A Financial Times editorial says that “spats in the cartel are not unusual”, but “last week’s breakdown in efforts to agree on production increases looks a little different”. It adds: “A rift has opened between Saudi Arabia and the United Arab Emirates that poses a risk, at least, that the latter could leave the group. It raises questions, too, about the cartel’s ability to retain discipline and stabilise oil markets as the energy transition gains momentum.”

In other oil news, Financial Times reports that “BP has bought out its private equity partner in a chain of US fuel stations, marking a return to the owned-and-operated model for retail sites in the US as energy majors bet on strong growth in electric vehicle charging and convenience stores”. And the FT “Energy Source” column speaks to Bobby Tudor – a “well-known banker to the US oil sector” – who “sees reality setting in for the Biden administration as its green push collides with the deep roots of America’s fossil fuel economy”.

China’s national emissions trading scheme (ETS) – which was initially scheduled to start trading “by the end of June” – will be launched on 16 July after a three-week delay, reports Caijing. The Chinese financial outlet says that “multiple industry insiders” have confirmed the new date. The publication notes that the national ETS is expected to introduce strict inspections against carbon data fabrication, part of the reasons for its launch delay. Bloomberg also reports that the scheme “will finally begin online trading on Friday”, citing “people familiar with the matter”. At a press briefing held earlier today, Zhao Yingmin, deputy head of the Ministry of Ecology and Environment, said that the national ETS would be launched at “an appropriate time” in July and cover the electricity sector initially, according to a transcript on state-run China Net. Zhao also stated that authorities had carried out various inspections into the carbon data reported by companies and found that data for the national carbon market “fit the requirements in general”, the transcript shows. Carbon Brief’s in-depth Q&A explains how the national ETS might help China fight climate change.

Meanwhile, China’s energy regulator, the National Energy Administration (MEA), is formulating a series of new rules and regulations to guide the development of the power storage industry, reports Caixin. Xu Ziming, a senior official of the NEA, gave the update at an industry summit in Beijing on Sunday, the financial outlet says. In addition, an economist from the Australia and New Zealand Banking Group has told CNBC that the Chinese government is “struggling to find a balance” between coping with climate change and economic growth. He adds that China will “still be facing this type of struggle” in the next two or three years under the current economic growth targets.

Elsewhere, Beijing’s state broadcaster CGTN reports that China and Turkmenistan are “eyeing further cooperation” in clean energy and nuclear power in a “long-term” energy partnership. In May, South China Morning Post reported that China was turning to the central Asian country for more natural gas supplies as it cut back on Australian energy imports. Finally, the Global Times, a state-run newspaper, says that there is “no power crisis” in the country, citing “Chinese firms” and “experts”. There were widespread reports of power shortages and electricity rationing in China in June. However, according to the Global Times, the power “shortfall” in Guangdong province was met by supply from other regions and production remained normal.

There is continuing coverage of the heat and wildfires hitting the western US. The Guardian reports that “more than 60 wildfires were burning across at least 10 states” yesterday, “with the largest, in Oregon, consuming an area nearly twice the size of Portland”. The paper continues: “The fires have torched homes and forced thousands to evacuate from Alaska to Wyoming, according to the National Interagency Fire Center. Arizona, Idaho and Montana accounted for more than half of the large active fires. The fires erupted as the west was in the grip of the second bout of dangerously high temperatures in just a few weeks. A major drought, exacerbated by the climate crisis, is contributing to conditions that make fires even more dangerous, scientists say.” A wildfire in California that has already burned through more than 9,000 acres in just 48 hours “is threatening to burn parts of the Yosemite National Park”, reports the Metro. The Washington Post reports that “smoke is clogging the skies” in the western US and Canada. A piece by the BBC News Reality Check team asks whether US and Canada could “see the worst wildfires yet”.

Meanwhile, the New York Times reports from the “megadrought” that is hitting the southwest US and the Guardian reports on how the drought “threatens the Hoover dam reservoir”. The heatwave over the region is “beginning to show signs of easing”, the Independent reports, but temperatures “remain above mid-July averages across California, Nevada, Oregon, Utah, Idaho, and Wyoming” and “some 10 million people remain under excessive heat warnings”.

In related news, the Guardian reports that “Russia’s army has sent water-bombing planes to support thousands of firefighters battling huge wildfires in Siberia, a region known for its frozen tundra that is now sweltering under a heatwave”. Reuters also has the story, while the Guardian has a separate report on how rising risks of heat stress “threaten workers from Nicaragua to Nepal”.

The Biden administration has appointed Allison Crimmins – a scientist who worked at the US Environmental Protection Agency for the past decade – to lead the next US National Climate Assessment, the Washington Post reports. According to the paper, the report is due out by the end of 2023 and “may take on unsurpassed importance in the Biden administration, which has made climate change a top priority”. The outlet adds that Crimmins will be responsible for bringing together findings from the 13 federal agencies participating in the US Global Change Research Program. It continues: “Crimmins stressed that she is committed to make this assessment, the fifth edition, the best yet so that it’s both ‘useful and usable’ for many different audiences.” The Hill adds: “A White House statement on Tuesday said that under Crimmins’s leadership, the assessment will aim to develop interactive tools to help people access the information, expand its focus areas to help people better prepare for climate change’s social and economic impacts and try to help improve adaptation planning. Crimmins said in a statement that she’d also seek to highlight disparities in climate impacts.” The outlet also notes that the Trump administration’s pick to lead the report – Betsy Weatherhead – was removed from the post in April.

The Financial Times has published a new special report on decarbonising power grids. The six articles cover the death of the “mega pipeline”, how extreme weather fuels rise of “virtual power plants”, the UK’s ageing nuclear reactors, how the electric vehicle revolution “drives power grid evolution”, why hydrogen backers confident of avoiding another false dawn, and an opinion piece by Marco Alverà, the chief executive of Italian energy infrastructure company Snam, on how “energy is on the cusp of a new era”.

The UK government “got away with its betrayal in the Commons” yesterday by fending off a rebellion against plans to cut foreign aid to 0.5% of GDP, says a Guardian editorial, but “it should expect to pay both at home and abroad”. It is “almost beyond belief that the government would cut spending on global health – including Covid research and basic sanitation – just as coronavirus has shown that our wellbeing is inextricably linked to the rest of the world’s”, the paper says. Aid funding “also boosts stability, security and soft power; both friends and rivals will take note of the cuts”, the editorial says: “In the supposed year of British leadership, this country has shown itself to be not only mean but shortsighted. Alok Sharma, the COP26 president, reportedly warned that it will damage our ability to reach a deal when Britain hosts November’s critical summit. The UK is asking developing countries to meet climate pledges, while claiming it can no longer meet its commitments. It is asking other nations to trust us while acting as an unpredictable and dishonest partner.”

Writing for the Times Red Box, Andrew Mitchell – Conservative MP, former international development secretary and vocal critic of the government’s decision to cut foreign aid – says that “despite the aid cuts, Britain can still show leadership and help the world’s most marginalised”. He continues: “We know we need urgent climate action now. What’s less well known is that we already have many of the cost-effective solutions that can protect those most at risk from environmental catastrophe. But we are not implementing those solutions and women and girls – often the most affected by climate change – are being side-lined. We cannot build climate resilience when they are denied their rights.” He suggests that “by using existing climate funding, the UK can remove barriers to family planning services, helping women and girls become more resilient to the climate crisis and adapt to its effects”. (Carbon Brief has previously reported on how climate change disproportionately affects women’s health, and how tackling gender inequality is ‘crucial’ for climate adaptation.)

A new study finds that 95% of emissions from Europe’s manufacturing and energy sectors come from a “small bundle” of 13-23% of the total “units”. The authors use EU Emissions Trading System data over 2005-17 from France, Germany, Italy, Spain and the UK to analyse mitigation measures and the distribution of emissions across Europe’s manufacturing and energy sectors. They find that a large share of installations have not reduced their emissions yet. For Europe to achieve net-zero emissions by 2050 will require “policies that are tailored to super-polluters and also support installations that have not started their decarbonisation pathway,” the study concludes.