UK prime minister Boris Johnson has told ministers that oil and gas will continue to play an important role in the UK’s energy supply as the country transitions to net-zero emissions, during a discussion of the UK energy security situation at his weekly Cabinet meeting, the Press Association reports. Despite the reports of substantial profits by oil-and-gas company BP, Johnson also said there would be no shift in the government’s opposition to calls for a windfall tax of fossil fuel firms, the article continues (see separate section below for more on this). The Sun reports that Johnson said “boosting energy in the North Sea could help drive down gas bills”. However, according to the Times, ministers have warned that the approval of new North Sea oil and gasfields may not be enough to convince companies to invest in Scotland’s industry. It quotes sources saying that the situation had been “very difficult” for investors amid a net-zero push, the COP26 climate conference in Glasgow and the Scottish government opposing the Cambo oilfield, west of Shetland. In a frontpage story, the Scotsman reports that UK ministers could be on a “collision course” with the Scottish government over plans to approve drilling at new oil and gas sites in the North Sea. MailOnline states that business secretary Kwasi Kwarteng is understood to be “firmly backing” North Sea development “amid pressure to speed up net-zero progress”, adding that “government sources dismissed claims that Rishi Sunak has been lobbying Mr Kwarteng to approve more drilling sites”. Meanwhile, the Times reports that newly appointed “Brexit opportunities minister” Jacob Rees-Mogg has called for a “return to fracking to increase Britain’s energy independence”.

The Guardian has a frontpage piece quoting leading climate scientists who say that a small group of Conservative politicians in the UK government and their allies are on the “frontline” of a “new climate war” and are “attempting to derail the government’s green agenda”. It notes that Conservative MPs and peers in the self-styled “net-zero scrutiny group” have gained widespread media coverage in recent months, calling for cuts to green taxes and an increase of fossil fuel production. “As Boris Johnson – seen as a Tory standard-bearer for net-zero – fights for his political life, attacks on the policy are continuing,” it concludes. A New Statesman article asks if, in the case of a Conservative party leadership contest, Rishi Sunak would “abandon net-zero”. A separate Guardian feature looks in detail at the politicians behind the attacks on net-zero, including Steve Baker and Craig Mackinlay. The Times has an opinion piece written by Baker calling for investment in nuclear power, which also takes a swipe at “green lobby-pleasing rhetoric and ineffective policies” and “talked-up renewable energy sources like wind farms”.

There is continuing coverage, including in the Times, of BP “cashing in” on surging oil and gas prices to deliver annual profits of $12.8bn (£9.5bn), its highest in eight years. Both Labour and the Liberal Democrats have seized on these results to urge the government to impose a “windfall tax” on North Sea oil and gas producers, the newspaper states. The Guardian notes that green groups and opposition parties are united in calling on the government to use a tax on the company to bolster the Treasury’s £9bn rescue plan to reduce energy bills, but adds that chancellor Rishi Sunak had already rejected calls for a windfall tax last week. BBC News reports that the firm has “rejected” calls for a one-off tax to help support people struggling to pay their energy bills, saying that such a tax would reduce investment in UK gas and renewables. The news website says that as other oil-and-gas companies also report large profits, they argue that while the global economy remains dependent on fossil fuels, they are being urged to shift to low-carbon alternatives, and need money to fund that transition. According to the Times, BP chief executive Bernard Looney said a windfall tax would deter investment in gas production needed to ease the crisis. The Daily Mirror notes that BP had recovered from a “torrid 2020”, when the pandemic “sent it slumping £13.4bn into the red on a statutory basis – its biggest ever annual loss”. The i newspaper also reports on calls for a windfall tax, noting that they come shortly after energy regulator Ofgem announced that household energy bills are set to increase by 54% from April because of the rising wholesale cost of gas (it also has an explainer on what a windfall tax is and how much tax BP currently pays). The Daily Telegraph notes that Looney “knew he had more than one audience to please as he unveiled BP’s earnings against a backdrop of rising energy costs”. It notes that as BP shifts towards renewable energy, “many shareholders are keen for strong returns delivered by oil and gas to be maintained, which have helped sustain pension funds for decades”.

Meanwhile, the Guardian reports that UK energy industry regulator Ofgem has “admitted” that UK households would have been better off weathering the gas crisis if it had acted sooner on financially unstable energy suppliers. BBC News notes that the collapse of 28 energy suppliers during the crisis has cost each household about £68.

In an “exclusive” story, the Guardian reports on new research conducted by the Liberal Democrats that finds the UK government’s decision to allow homes to be built to low energy-efficiency standards cost owners of newly built homes about £234m last year. It notes that the zero-carbon homes standard was supposed to come into force in 2016, but the measure – first introduced under Labour – was scrapped by the Conservative government in 2015, resulting in 1.2m new homes being built with low efficiency standards. The Daily Telegraph reports on analysis from the Energy and Climate Intelligence Unit thinktank which finds households in 37 of the 40 most marginal seats in the country face significantly higher bills due to poor-quality housing. Finally, the Independent reports that the Green Party has called government plans to improve the energy efficiency of 20,000 council houses “wholly inadequate” and a “drop in the ocean” compared to what is needed.

Xinhua reports that China’s coal production has “increased” during the seven-day Lunar New Year holiday. The announcement by the country’s top economic planner comes “amid the country’s efforts to keep coal production and supply stable”, the Chinese state news agency says. It adds that the coal storage in China’s power plants has reached 165m tonnes, a 40m-tonne year-on-year increase. People’s Daily – the official newspaper of the Chinese Communist Party – picks up the same story. A spokesperson at China Energy – a state-owned mining and energy company – told the newspaper that staff at his company had worked overtime through the holiday to ensure a “stable and reliable” supply of energy and heating during the festival. A spokesperson at China Coal – which describes itself as a “key” state-owned enterprise specialising in coal mining – told People’s Daily that its production over the seven-day holiday had set a “historic new high”.

Separately, Bloomberg reports that “China’s dependency on coal is likely to worsen this year as the authorities struggle to rein in prices after the Lunar New Year break”. The outlet points out that China produced more than 4bn tonnes of coal for the first time in 2021, adding that the measures to tackle the power shortages last year “involved unleashing some 300m tonnes of capacity that’s still producing”. According to S&P Global Platts, one of China’s largest state-owned oil companies, CNPC, has released a “road map” for the country’s energy sector under the nation’s “dual-carbon” goals. “The road map shows recent events like the energy crisis of 2021 and record-high prices of generation fuels have already impacted long-term energy policy,” the website says. Meanwhile, Reuters reports that the eastern Chinese coastal province of Zhejiang has approved the construction of a new 7bn yuan (£0.8bn) coal-fired power plant with 2 gigawatts (GW) of generating capacity.

Elsewhere, China Daily says that the extension of solar tariffs by the US will have “a limited impact” on China’s solar panel manufacturers. But the move by the US “will disturb the new energy trading order as well as global efforts to cope with climate change”, the state-run newspaper reports, citing “analysts”. Finally, the Hill runs an opinion piece titled: “China plays an essential role in any global climate solution.”

UK energy company SSE has raised its full-year earnings guidance as a strong financial performance from its gas power plants helps to “more than offset” a drop in output from its wind farms, the Financial Times reports. While weak wind speeds have have affected renewables companies across northern Europe over the past year, the newspaper notes that “owners of thermal generation assets such as gas-fired power stations have been benefiting from high prices in recent months” to help balance the UK’s electricity grid. This performance come after rejected calls from hedge fund Elliott Management for SSE to break up its business into a distinct renewables arm, and the article notes that Gregor Alexander, SSE’s finance director, said these results “have demonstrated yet again the value of SSE’s integrated business mix”. The Financial Times’ Lex column says “Elliott and its supporters will simply calculate how much larger the payout would be without investment drag from renewables”. It also notes that “consumer champions will see scope for price cuts or a windfall tax”. Meanwhile, BusinessGreen reports that SSE has also announced new sustainability goals for 2030, including plans to slash the company’s carbon intensity by 80% and increase its renewables output fivefold. The firm says the new goals will complement its previously announced Net Zero Acceleration Programme, which saw it pledge £12.5bn in low-carbon infrastructure over the next five years, the website notes.

US-born campaigner Jennifer Morgan, who heads the environmental group Greenpeace International, is set to become Germany’s new climate envoy, according to the Associated Press. The articles notes that Morgan will be formally announced in the new role today by German foreign minister Annalena Baerbock, a member of the Green Party, which rules as part of the nation’s coalition government. Reuters notes that by making this appointment Germany would join a small group of countries with designated envoys to handle international climate change diplomacy. It quotes experts who note Morgan’s long experience in the world of international climate diplomacy. The story was first reported by the German publication Der Spiegel. (See Carbon Brief’s in-depth 2015 interview with Morgan.)

Politico has a story on why Germany “pipes down” when discussions turn to the the threat of sanctions on the Russia-to-Germany Nord Stream 2 gas pipeline. “To many of Germany’s allies, Chancellor Olaf Scholz’s refusal to state plainly what appears obvious – that Russia would lose a new gas pipeline to Germany if it invades Ukraine – is utterly baffling,” it notes. However, the piece states that the reasons could lie in a mix of “diplomatic tactics, domestic party politics and legal concerns”.

Another Politico story reports that in France, president Emmanuel Macron is likely to use this week’s One Ocean Summit in Brest to “showcase his green credentials ahead of presidential elections in April”.

The US army has released its first climate strategy, Reuters reports. According to the newswire, the army aims to halve its greenhouse gas emissions by 2030 and reach net-zero emissions by 2050. It adds that the strategy is “designed to help protect bases against damage from global warming and improve readiness by training soldiers to deal with a world with more killer heat waves, droughts and floods”. It continues: “The strategy calls for the Army to slash emissions from buildings, develop an all-electric, non-tactical vehicle fleet by 2035, and the placement of a microgrid, an independent energy system that can use many sources of power including renewables at every installation by 2035… The strategy also calls for leadership and workforce training to include climate change topics no later than 2028 and to publish lessons learned about climate change and best practises starting in 2024.” Politico adds that the army currently has 950 renewable energy projects supplying 480 megawatts of power and there are 25 microgrid energy projects planned through 2024.

The Sun voices its approval of UK prime minister Boris Johnson’s support for new oil and gas operations in the North Sea, which he said could help drive down gas bills. “Three cheers if reality is dawning and sanity prevailing over net-zero in the Cabinet. Soaring energy bills should shortly sober up any remaining holdouts still drunk on utopian promises from COP26,” it states in an editorial, which contrasts starkly with the fact that the Sun launched its “green team” campaign exactly a year ago today. The editorial says that the UK’s energy future is in “disarray” and that low-carbon energy sources such as renewables cannot be relied upon to provide all of the nation’s power. It adds that “demands by Labour and eco ­zealots to go further, faster on net-zero are deranged”. It concludes: “But we will need a lot more gas in the decades before we finally eliminate emissions. So why stop there? Fracking is still a vast, untapped opportunity. The government must face down the scaremongers and seize it”. An editorial in the Daily Mail expresses similar sentiments, calling the government’s support for North Sea fossil fuel operations “an outbreak of common sense”. It says that without more fossil fuels “bills will continue to soar” and “we will be at the mercy of tyrants like Vladimir Putin”. In the Daily Express, political commentator Tim Newark writes that the UK’s North Sea fossil fuels could be used to cut bills and “ease the way to net-zero”. The newspaper also has an article with Prof Stuart Haszeldine, a carbon capture and storage experts at the University of Edinburgh, and Dale Vince, founder of Ecotricity, arguing for and against fossil fuels helping the transition to net-zero. Vince states: “We can’t protect ourselves by wringing the last few drops of oil from the North Sea – half our gas already comes from there but that didn’t save us one single penny this winter because we let global markets set the price we pay for our own fossil fuels.”

There is more support for fossil-fuel extraction in the Daily Telegraph, where columnist Philip Johnston has a piece titled: “Britain needs a new dash for gas to save us from the lunacy of net zero”. For Johnston, the profits reported by fossil fuel giants such s BP and Shell “demonstrate that the UK’s rush to achieve net zero is not being followed by the rest of the world and cannot be sustained here without a massive public backlash”. He says that these issues are “feeding into the debate around Boris Johnson’s future”, stating that he “would be wise” to back the chancellor Rishi Sunak and the business secretary Kwasi Kwarteng in “a new dash for gas”.

In the Guardian, economics editor Larry Elliott argues in favour of a windfall tax on oil and gas companies in light of BP’s announcement about its significant profits. “There are three reasons for a rethink: the cost of living crisis will leave millions of households a lot worse off even after the Treasury’s energy support package; previous Tory governments have found windfall taxes a useful way of raising money in tough times; and it would shoot Labour’s fox,” he says, the last point referencing Labour’s call for such a tax.

An editorial in the Times takes an even-handed approach, stating that “Conservative calls to delay the transition to net zero and Labour calls for a windfall tax on energy firms are equally misguided and likely to prove counterproductive”. It concludes: “A serious plan for net zero would also include reforms to the tax and benefits system to ensure that the transition is fair. But where are the serious politicians willing to confront this challenge?”

Writing for CapX – the news outlet founded by the right-leaning thinktank the Centre for Policy Studies – Conservative MP Philip Dunne says that the “government has made the right call not to cut green levies” during the energy crisis. Dunne – who is chair of the Environmental Audit Committee – writes: “Although some commentators selectively highlight levies’ current share of electricity bills (25%), the reality is that they will soon make up only 8% of the dual fuel bill, as the wholesale cost component of the bill has shot up so much. The government is in tune with the public by retaining these schemes, with a recent poll finding that just 13% of the public believe green levies are to blame for the current crisis.” Green levies “are also a key driver of clean growth in our industrial heartlands”, writes Dunne, “with vastly better job creation prospects than from fracking, now being promoted by some”. In addition, he says, “rather than cutting schemes that pay for insulation for fuel poor households, as some have called for, we should be creating new incentives for people to insulate their homes…While too late for the current crisis, I have called for the government to come forward with a new, widely accessible energy efficiency scheme soon, so we can be better prepared for the next rise”.” While there are “no easy answers to gas price spikes in the short term, the net-zero strategy provides the right long-term policy to move us away from gas”, concludes Dunne: “The government is right to press ahead in implementing its vision for a net-zero Britain.”

Finally, Guardian columnist George Monbiot takes aim at climate-sceptic Conservatives in the net-zero scrutiny group in a piece titled: “When it comes to the ‘costs’ of going green, the Tories suddenly care about poverty.”

Countries in sub-saharan Africa and south Asia received “significantly less” funding for climate mitigation and adaptation over 2000-18 than many other countries, despite their higher climate vulnerabilities, according to new research. The authors analysed approved climate funding for more than 100,000 projects in 133 countries, over 2000-18, covering three areas of climate action – mitigation, adaptation and overlap. They conclude that the relationship between vulnerability and funding is “non-linear”. As such, “most vulnerable” countries received higher amounts of adaptation and overlap funding than the ‘least vulnerable’ countries, but “moderately vulnerable” countries received more funding than the ‘most vulnerable’ countries.

A new study finds that recently constructed hydropower dams are, on average, linked with reduced economic production, population, and greenness of areas within 50km of the dam. The authors analysed the impacts of 631 hydropower dams constructed since 2001, for their effects on “economy, population, and environment” in Africa, Asia, Europe, North America and South America. They note that around one third of global gross domestic production and global population falls within 50km of the world’s 7,155 hydropower dams. The study finds that hydropower dams are linked to increased GDP in North America and urban European areas, but with decreased GDP, urban land and population in the Global South.