Macroeconomics

US Clarifies Position on Dollar Amid Tariff Negotiations
US officials clarified this week that the Trump administration is not intentionally seeking a weaker dollar during ongoing global trade discussions, easing concerns within currency markets. Speculation over currency manipulation had recently fuelled volatility, strengthening currencies such as the South Korean won and Japanese yen. The US Treasury confirmed that currency policy will be negotiated solely by Treasury Secretary Scott Bessent, and not by other trade representatives. The dollar has depreciated by roughly 8% against major currencies since President Trump took office, largely due to concerns surrounding assertive US trade strategies.

Carbon Markets

CORSIA Carbon Prices Forecast to Rise by 2027
Prices for carbon credits eligible under the UN’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) are projected to reach between $14 and $16 per tonne by 2027. This forecast reflects an increasingly constrained market for aviation-linked offsets, driven by higher demand for credible credits under both regulatory frameworks and voluntary climate commitments.

Renewables and Biofuels

UK Ethanol Sector Faces Price Pressure from US Trade Deal
The UK ethanol market is preparing for price reductions following a trade agreement with the United States, which eliminates tariffs on up to 1.4 billion litres of imported ethanol annually. While the government maintains that this move will benefit consumers, UK ethanol producers have warned of potential closures due to heightened competition, as duty-free US imports could undercut domestic output. The National Farmers’ Union has raised concerns regarding the possible detrimental impact on British bioethanol production and the wider agricultural sector.

Denmark Reconsiders 40-Year Ban on Nuclear Power
Denmark is re-evaluating its long-standing prohibition on nuclear power as part of efforts to bolster energy security. Energy Minister Lars Aagaard announced a government study into modern nuclear technologies as a potential complement to the country’s wind and solar energy assets. Although nuclear power has faced historical opposition in Denmark, policymakers are now recognising the importance of stable base-load energy sources alongside expanding renewable capacity.

RWE Reports Drop in Profit Amid Poor Wind and Market Conditions
Germany’s largest utility, RWE, posted an almost 25% decline in first-quarter earnings (adjusted EBITDA), citing weaker commodity trading and unfavourable wind conditions affecting its offshore wind operations. Despite this downturn, RWE reaffirmed its 2025 forecast and signalled it may redirect capital towards share buybacks should planned investments fail to meet enhanced return expectations.

Europe Faces Pricing Pressures to Refill Gas Storage
Europe must maintain competitive LNG pricing to secure the 30 billion cubic metres needed to refill its gas storage, according to Equinor’s natural gas executive, Peder Bjorland. As demand rebounds in Asia—particularly China—Europe’s capacity to attract LNG cargoes will hinge largely on price competitiveness. Equinor identifies Asia, including India, China, and Southeast Asia, as a primary growth market for its LNG exports.

Environmental and Sustainability Regulation

EU Proposes Further Easing of Green Criteria for Farming Subsidies
The European Commission has proposed further relaxations of the environmental requirements attached to Common Agricultural Policy (CAP) subsidies, aimed at reducing bureaucratic burdens for farmers across Europe. Proposed changes include exempting smaller farms from certain green conditions, allowing more flexibility to convert grasslands, and accelerating emergency funding in response to natural disasters. Environmental advocates have criticised the proposals, arguing they threaten vital ecosystems—such as wetlands and peatlands—that are essential for climate resilience.