Germany’s decision to fund its climate plans by reallocating €60bn in unused debt unlocked during the Covid-19 pandemic is unconstitutional, the country’s top court ruled yesterday, reports Politico and others. Politico explains: “The reallocation violated the so-called debt brake, a constitutional provision that caps government borrowing except during emergencies and recessions.” Politico says that the federal government made the decision to shift the funding originally intended to help with the Covid-19 pandemic to a climate fund in February 2022 and was subsequently challenged in court by lawmakers from the centre-right opposition. Politico adds: “The decision comes as Chancellor Olaf Scholz is embroiled in tense budget negotiations for the upcoming year, and leaves the government with a €60bn hole in its budget.” The Daily Telegraph quotes Scholz, who says the ruling will have “far-reaching effects on the climate and transformation fund”, adding that the German government will “quickly revise” its economic plan. The New York Times notes that Germany’s Climate Transformation Fund – which will now be reduced by €60bn – had “€212bn dedicated to projects from 2024 to 2027”. 

Many publications continue to cover a new joint statement on climate change from the US and China released shortly before presidents Joe Biden and Xi Jinping were due to meet in California for talks yesterday. BBC News reports that, according to the statement, the world’s two largest emitters have agreed to “step up co-operation on methane and support global efforts to triple renewable energy by 2030”, but adds “the document is silent on the use of coal and the future of fossil energy”. It says: “The joint statement comes as the presidents of both countries prepare to meet in California, with climate change representing one of the few areas of potential progress. For over a year US diplomats have been trying to find a way forward with China after Beijing suspended climate talks after the visit of US Speaker Nancy Pelosi to Taiwan. Last week those efforts saw US climate envoy John Kerry meet with his Chinese counterpart, Xie Zhenhua, for three days of negotiations that have led to this agreed position.” The Financial Times adds that the “most specific commitment from the two sides was to advance ‘at least’ five ‘large-scale’ carbon capture, utilisation and storage projects each by 2030”. The newspaper carries reaction from Alden Meyer, from the climate think tank E3G, who says: “This is not as big as the agreement before Paris…but I think this is a significant statement. It really does signal that both countries want substantive progress.” The New York Times, Guardian and Reuters all cover the joint statement.

As presidents Xi and Biden meet in San Francisco, Xinhua is one of several outlets republishing a speech by Xi Jinping in which he says that “high-quality development that prioritises ecology and is green and low-carbon can only be achieved by high-level protection” and that China must “fully respect and comply with nature”. He stresses that China’s dual carbon targets [of carbon peaking by 2030 and carbon neutrality by 2060] are “unwavering” but that the path and pace of achieving these goals must be “determined by China itself, without being swayed or influenced by others”. Meanwhile, Reuters reports that the four-hour meeting between Biden and Xi included discussions on maintaining “high-level communications” and cooperating “on trade, agriculture, climate change and artificial intelligence”. An explainer in the state news agency Xinhua on the importance of the meeting quotes Joseph Mutaboba, an expert in international relations and diplomatic affairs, as saying that “this stability [of the relationship] is vital for addressing pressing global issues”, including climate change. 

In other news, the Chinese business outlet Jiemian reports that the total electricity consumption in October nationwide reached “741.9 terawatt-hours, a year-on-year increase of 8.4%”. Chinese industry outlet IN-EN.com also covers the news, saying that, in October, thermal power generation increased by 4.0%, hydropower grew by 21.8%, and solar power increased by 15.3%. Elsewhere, the South China Morning Post carries a commentary by Gerassimos Thomas, director-general of the European Commission’s taxation and customs union, which says that China is actively pursuing high-level dialogue with the EU on its carbon border adjustment mechanism (CBAM), and adds that the EU wants to “better understand [China’s] carbon pricing reporting system and methodologies so we can most effectively take them into consideration after the end of the CBAM transitional period”. Finally, China Dialogue has published an article by editor Xia Zhijian, who says that despite the fact that air pollution levels in China “fell a remarkable 42.3% between 2013 and 2021”, the “amplifying effect” of climate change on ozone production could exacerbate ozone pollution and “bring adverse health effects for hundreds of millions of people”.

Many UK publications cover the news that the government has decided to raise the support price for new offshore wind farms by 66%. The decision comes as the UK “tries to rekindle investment in a crisis-hit sector that’s crucial to its climate goals”, according to Bloomberg. The publication says: “The move aims to encourage developers who have been put off investing in Britain as rising costs, higher interest rates and supply chain bottlenecks have eroded profitability. The offshore sector has been mired in a crisis globally, and the UK’s last auction round drew zero bids from companies. For the next auction, the guaranteed price will be £73 ($91) instead of £44. The government needs to get Britain’s clean-power strategy back on track after the failed auction round put targets in jeopardy. The UK wants to have 50 gigawatts of offshore wind by 2030, and this will need two bumper auctions to avoid a lost year for the sector.” The Guardian adds that the government has also raised the starting price for floating offshore wind projects by more than 50% – from £116 per MWh to £176 – before the next subsidy auction in 2024. The paper carries a comment from energy secretary Claire Coutinho, who says: “We recognise that there have been global challenges in this sector and our new annual auction allows us to reflect this. This is a vital part of our plan to have enough homegrown clean energy, bringing bills down for families and strengthening our energy independence.” Reuters, the Times and the Daily Telegraph also have the story.

In other UK energy news, the Daily Telegraph reports that Coutinho is “poised” to approve a hydrogen heating trial in Yorkshire despite local opposition. The Times reports that the energy company SSE has increased its investment plans by £2.5bn over the next few years “as inflation and supply chain woes increase the cost of the power network upgrades needed to decarbonise the electricity system”. In an accompanying business commentary, Alistair Osborne, chief business commentator at the Times, says that SSE’s woes show the UK’s net-zero strategy is “in need of a jolt”.

Elsewhere, the Guardian reports that Lord Adair Turner, the first chair of the Climate Change Committee and a former chief government adviser, has labelled the UK’s decision to allow a new coking coal mine in Cumbria as a “disaster” for climate diplomacy. Lord Turner also tells the Times (not yet online) that the UK’s reputation for climate leadership means “it does not make any sense for the UK to be licensing more exploration in the North Sea”. The Daily Telegraph reports on a warning from the Commons public accounts committee that there are currently not enough electric car charging stations across the UK.

There is continued coverage of the EU’s deal to curb methane emissions from the fossil fuel industry, reports the Guardian and others. The Guardian explains: “Under the proposed law, the first of its kind, coal, oil and gas companies would be required to report their methane emissions and take steps to avoid them. The measures include finding and fixing leaks, and limiting wasteful practices such as venting and flaring gas by 2027…The new EU rules, which were agreed on Wednesday by the European parliament and European Council, mean fossil fuel companies must try to repair leaks no more than five days after finding them, and fully fix them within a month. By the end of next year, operators will have to survey their existing sites and submit action plans to find and fix methane leaks.” The Guardian adds that the new agreement will also cover imported fossil fuels, “which experts say could raise the bar for fossil fuel companies around the world”. Politico adds that imports currently make up 80% of the EU’s oil and gas consumption and that the rules will require “companies importing oil and gas into the bloc to demonstrate that their supply chain has emissions monitoring standards equivalent to the EU’s from 2027”. The Financial Times adds that methane emissions relating to the EU’s imported energy are up to eight times higher than domestic production. “By 2030, importers will have to meet maximum methane intensity thresholds, yet to be defined,” it says. A Reuters analysis notes that as the EU’s top supplier of liquified natural gas (LNG), the US may be forced to “clean up its act” by the new rules.

Elsewhere, a second Reuters story reports that EU greenhouse gas emissions dropped 5% in the second quarter of this year. Politico reports on how Portugal’s “corruption scandal” could “spell trouble for the EU’s critical mineral hunt”.

Time Magazine publishes a frontpage interview with Sultan Al Jaber, the Abu Dhabi oil chief who is president-designate of the COP28 climate summit. During an interview conducted in Abu Dhabi in October, Al Jaber tells Time climate reporter Justin Worland: “A phasedown of fossil fuels is inevitable, it is essential. We have to accept that.” But, according to Time, Al Jaber also believes that the world is “not ready to entirely kick oil and gas”. He tells the publication: “We need to get real. We cannot unplug the world from the current energy system before we build a new energy system.” Al Jaber also says that he has extended an invitation to COP28 to oil and gas companies and prioritised private-sector climate solutions. He tells Time: “There’s going to be a paradigm shift. The political process needs to be well complemented with private capital and a business mindset.”

An editorial in the Washington Post urges US president Joe Biden to steer clear of “protectionist” policies to enhance the global transition towards low-carbon energy. It says: “It was nice to hear about the agreement between Washington and Beijing on Wednesday to renew cooperation on climate. Still, the trade war with China, started by president Donald Trump and embraced wholeheartedly by president Biden, has probably already raised global greenhouse gas emissions. In 2022, China accounted for only 16% of US imports, down from 22% five years earlier. Chances are, this number will shrink further.”

Writing in the Financial Times, Italian economist Mariana Mazzucato argues that progress on climate change will not be achieved without a transformative new approach to climate finance. She says: “It is time to tap into public development finance in ways we have not done before. First, we must tackle our global debt crisis head on. As Mia Mottley, prime minister of Barbados, has argued, countries in the global south face a double jeopardy: they are disproportionately affected by the consequences of climate change, largely caused by the historical emissions of the global north, but they lack the funds to respond to the threat…This predicament underscores the need for a more equitable financial architecture that does not unfairly penalise the global south for problems primarily caused by the wealthier nations, and instead provides support for climate change without further eroding their finances. This means historic debt write-offs, debt restructuring and repaying climate loans with non-repayable grants.” Elsewhere, Reuters carries a commentary titled: “COP28’s big challenge: green cash for poor states.”

Five species of small lowland herbivore declined by an average of 28% in the 20 months after Cyclone Idai, according to new research. Making landfall in Mozambique in 2019, Idai is the deadliest storm on record in Africa. The authors attribute the animals’ sensitivity to their limited ability to move upslope and shift their diets. Four of the largest upland species, on the other hand, increased by an average of 26%. The authors say their results help identify animal responses to severe weather, which “may help to inform wildlife conservation in a volatile climate”. This is especially the case for large animals or “megafauna”, which are ecologically important but difficult to monitor. 

New research explores how to strike a balance between regulating potential sea ice geoengineering initiatives – primarily solar radiation management – while upholding Indigenous rights in the Arctic. Calling climate intervention “a likely reality” and using resource extraction as an analogy for geoengineered sea ice, the authors emphasise the need to integrate “oceanic ethics” into global ocean law and governance in a way that “advocates for nature-centric visions, Indigenous-led climate actions, and community-level marine resource management within international legal frameworks”.