A turbulent week unfolded as global trade tensions intensified, with the United States threatening 30% tariffs on EU and Mexican goods, casting a shadow over Europe’s economic outlook. Simultaneously, the European Central Bank (ECB) signalled a more measured approach to climate regulation for banks, while momentum grew for a coordinated carbon infrastructure strategy across Europe. Renewables and biofuels witnessed major developments, from Germany’s immense agrivoltaics potential to sweeping changes in biofuel demand spurred by US policy. Meanwhile, China introduced its first-ever renewable mandates for heavy industry, underscoring the global shift towards stricter decarbonisation frameworks.

US Tariffs Threaten EU Trade Stability

President Trump’s announcement of 30% tariffs on EU and Mexican imports from 1 August sent shockwaves through global markets. German Chancellor Friedrich Merz warned that such measures would strike at the very heart of German industry, urging a unified response from the European Union. While Trump left the possibility of revisions open, dependent on concessions regarding trade barriers, EU officials reiterated their willingness to negotiate while also preparing proportionate countermeasures if necessary.

ECB to Adopt Gradual Approach on Bank Climate Planning

The European Central Bank stated that it would adopt a phased approach in assessing how banks are planning for the transition to a low-carbon economy. While transition planning becomes mandatory in 2025, formal evaluations will not commence until 2027. ECB board member Frank Elderson noted significant progress among lenders but emphasised that penalties remain a possibility for those failing to comply.

Call for Carbon Infrastructure Coordination in Europe

The World Energy Council Germany called for urgent, coordinated investment in carbon dioxide transport and storage infrastructure to enable commercial-scale deployment of carbon capture and storage (CCS). Germany, in particular, continues to lag due to regulatory delays and historical political resistance. A draft bill currently under review may pave the way for implementation this autumn.

Germany’s Agrivoltaics Potential Could Exceed 500 GWp

Germany could accommodate over 500 gigawatt-peak (GWp) of agrivoltaic installations on suitable agricultural land, according to research from Fraunhofer ISE. This figure surpasses the nation’s 2040 solar capacity targets. The study highlighted that a lack of grid connectivity remains a major bottleneck, despite high land suitability across multiple regions.

Slovakia Seeks Concessions Before Backing New EU Sanctions

Slovakia continues to oppose the EU’s 18th sanctions package against Russia, seeking assurances to protect its economy from a proposed halt to Russian gas imports. Prime Minister Robert Fico warned that increased energy costs could undermine Slovakia’s competitiveness. Discussions with Germany are ongoing, with a decision deadline early next week.

Restructuring of the Biofuels Market Accelerates

The US Department of Agriculture (USDA) forecasts that American biofuel producers will consume more than half of the nation’s soybean oil in 2025–26, driven by stronger blending mandates and reduced import flexibility. Meanwhile, Greenergy has announced the potential closure of its Immingham biodiesel plant in the UK, citing unsupportive policy conditions. In Europe, demand for hydrotreated vegetable oil (HVO) continues to climb amid tighter blending mandates and reduced carryover allowances, reshaping trade flows and supporting elevated spot prices.

China Introduces First Renewable Mandates for Heavy Industry

China has implemented its first renewable energy mandates for sectors including steel, cement, polysilicon, and data centres. These targets, which vary by province, form part of the country’s evolving renewable portfolio standards. Analysts view the move as a pivotal step towards market-based pricing and deeper integration of renewables into heavy industrial operations.