This week highlighted growing political and regulatory uncertainty across the energy, climate, and macroeconomic landscapes. From delays and confusion surrounding CBAM implementation, to Germany’s stalled wind auction and a global misalignment in climate regulation strategies, stakeholders are grappling with increasingly complex systems with little clarity. Meanwhile, central banks and financial institutions are adjusting risk models in response to geopolitical tensions, climate volatility, and tariff-related disruptions.

Macroeconomics

Trump Signals Temporary Fed Appointment

President Trump is expected to appoint a temporary governor to the Federal Reserve within days, filling the vacancy left by Adriana Kugler on 8 August. A permanent nomination is anticipated to follow. The decision comes amid mounting speculation over Trump’s eventual choice to replace Fed Chair Jerome Powell, whose term concludes in May 2026. Powell may opt to remain on the board until 2028, potentially complicating Trump’s plans.

Swiss Delegation Fails to Secure Tariff Relief

Switzerland’s president has left Washington without securing a reduction in the 39% US tariff on Swiss goods. Despite presenting a fresh proposal, the delegation did not meet with President Trump, leaving the tariff in place. This represents the highest rate imposed on any developed nation and increases pressure on Swiss exporters.

Carbon Markets

EU Importers Raise Alarm Over CBAM Implementation Gaps

EU importers have expressed growing concern over missing technical details essential to the Carbon Border Adjustment Mechanism (CBAM), which will be fully implemented in 2026. The absence of clarity has prompted some firms to prepare for possible delays, complicating supply chain planning and emissions reporting.

Germany Approves CCS Infrastructure Expansion Bill

Germany’s cabinet has approved legislation to accelerate the development of carbon capture and storage (CCS). The bill designates CCS projects as being of overriding public interest and allows for the repurposing of existing natural gas pipelines for CO₂ transport. It aims to support hard-to-abate sectors and increase annual CO₂ storage capacity, particularly offshore.

Renewables and Biofuels

Germany’s Offshore Wind Auction Attracts No Bidders

Germany’s latest offshore wind auction closed without a single bid, reflecting investor dissatisfaction with zero-subsidy project models. Industry groups cited high risk exposure and insufficient protections. The outcome signals waning investor confidence in Germany’s offshore wind sector and threatens renewable energy targets.

Regulatory Clash Threatens ARA Biofuel Trade

A regulatory mismatch between EU-level FuelEU Maritime rules and national implementation in Belgium and the Netherlands threatens to disrupt the Amsterdam–Rotterdam–Antwerp (ARA) biofuel market. Differences in how used cooking oil-based fuels are counted towards targets could inflate costs and reduce competitiveness for marine biodiesel in the region.

Germany Cuts Solar Feed-in Tariffs for Small Projects

Germany’s Federal Network Agency has announced a 1% reduction in feed-in tariffs for new small-scale solar projects commissioned between August 2025 and January 2026. The decision reflects a recalibration of subsidy levels in light of shifts in cost and demand in the solar energy market.

Germany Advances Geothermal Energy and Removes Gas Storage Levy

Two major measures have been taken to support the clean heat transition. First, the cabinet approved a law to streamline approvals for geothermal energy projects, designating them as public interest infrastructure. Second, it passed a bill abolishing the gas storage levy, easing financial pressure on households and industries by an estimated €3.4 billion annually.

Corporate Sustainability and Regulation

Commerzbank Sets Aside €270 Million for Climate and Tariff Risks

Commerzbank has created a new provision buffer to cover risks from US tariffs and climate-related losses. The move aligns with new ECB guidance urging banks to incorporate emerging risks into capital planning. Climate and environmental risks accounted for €81 million of the total provisions.

China Publishes Green Finance Taxonomy

China has launched its Green Finance Endorsed Project Catalogue, a unified taxonomy for all green financial products, effective 1 October 2025. Key additions include categories for green trade and the transition of hard-to-abate industries. The reform aims to consolidate existing standards and improve transparency and asset liquidity.

Environmental and Climate Policy

EU Faces Criticism Over Lack of Analysis on International Offsets

The European Commission has admitted it did not carry out a formal impact assessment for its proposal to allow carbon credit purchases from outside the EU as part of its 2040 climate strategy. Critics argue this undermines domestic emissions reductions and risks weakening the integrity of the EU’s climate framework.