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EU approves mandatory energy savings and cap on company revenues

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EU approves mandatory energy savings and cap on company revenues

EU vitality ministers accepted on Friday a primary package deal of emergency measures in an effort to curb hovering electrical energy payments and coordinate member states’ responses to the vitality disaster.

The package deal, negotiated in lower than a month, consists of obligatory energy financial savings, a cap on extra market revenues and a levy to seize surplus company earnings.

An EU-wide worth cap on fuel imports stays, in the meanwhile, beneath examine.

“At the moment the EU managed to ship,” mentioned Jozef Síkela, the Czech Republic’s minister for trade and commerce. The nation holds the EU Council’s rotating presidency and is tasked with moderating inside talks.

“We accomplished one other a part of the puzzle however undoubtedly not the final one,” Síkela added. “That is an instantaneous patch.”

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The settlement comes as inflation within the eurozone hit double digits – 10% – for the primary time within the historical past of the one forex, primarily pushed by skyrocketing vitality payments.

The EU intends to each scale back electrical energy consumption throughout peak hours to rebalance the supply-demand mismatch and seize a part of the revenues that energy crops and fossil gas firms have made attributable to excessive costs.

After a brief dialogue on Friday morning, ministers reached a deal and stored the core substance of the package deal intact, with amendments targeted on flexibility and sensible implementation.

The three measures are all time-limited and canopy:

  1. An EU-wide plan to introduce energy financial savings: a compulsory 5% goal throughout peak hours, when fuel performs an even bigger position in price-setting, and a voluntary 10% discount in total electrical energy demand.
  2. A cap on the surplus revenues made by energy crops that don’t use fuel to supply electrical energy, reminiscent of photo voltaic, wind, nuclear, hydropower and lignite. The cap shall be uniform and set at €180 per megawatt-hour. All revenues that exceed the barrier shall be collected by governments.
  3. A solidarity mechanism to partially seize the excess earnings made by fossil gas firms (crude oil, fuel, coal and refinery). Authorities will be capable to impose a 33% levy on the earnings made by these firms within the 2022 fiscal 12 months – however provided that the earnings symbolize a 20% enhance in comparison with the common since 2018.

The additional funds obtained by way of the second and third devices shall be re-directed to households and firms beneath monetary stress within the type of subsidies, diminished tariffs or earnings assist.

International locations which have already established related options on the nationwide degree shall be allowed to proceed their schemes in the event that they pursue the identical objectives because the EU’s package deal.

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Whereas the package deal represents a decisive step ahead within the EU’s response to the vitality disaster, there’s broad consensus that additional motion is required earlier than the winter season arrives.

“We have to proceed our work,” Síkela mentioned. “We’re in an vitality battle with Russia.”

His French counterpart, Agnès Pannier-Runacher, echoed the decision. “Let me be very clear: we should go a lot sooner, a lot additional and make different proposals,” she advised reporters on Friday morning.

What a couple of divisive worth cap on fuel imports?

On the finish of Friday’s assembly, all eyes had been on an initiative to impose a worth cap on all fuel imports getting into the EU, no matter geographical origin, and all fuel transactions happening within the single market.

The unprecedented measure has gained traction throughout the bloc and was this week endorsed by a gaggle of 15 member states, together with France, Italy, Spain and Belgium.

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As the most costly gas to satisfy all energy calls for, fuel units the ultimate worth of electrical energy, even the place cheaper and greener sources contribute to the full combine.

By capping fuel costs, electrical energy payments shall be artificially contained, the signatories imagine.

So what occurred with the fuel cap?

For now, the thought continues to be studied by the Fee’s companies, which fear the cap would scare suppliers away, endanger the EU’s safety of provide and incentivise fuel consumption at a time when financial savings have develop into essential.

“We had a frank dialogue,” mentioned Kadri Simson, European Commissioner for vitality. “Whereas views differ throughout member states, there’s additionally frequent floor. We agreed the market isn’t working usually and an intervention is critical.”

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Simson mentioned the cap instructed within the joint letter was “radical” and required a sequence of preconditions, reminiscent of an “unambiguous” mandate to strengthen the EU’s fuel discount plan past the present 15% goal.

As a safer various, the Commissioner provided a focused worth cap on fuel completely used for electrical energy technology, along with a separate benchmark for the commerce of liquefied pure fuel (LNG). Particulars on each proposals stay scarce and shall be developed within the coming weeks.

“These are far-reaching measures that intervene considerably within the functioning of the European fuel market,” Simson mentioned. “We aren’t proposing this frivolously.”

Though Síkela, as consultant of the EU Council’s presidency, didn’t voice his nation’s place on the more and more heated debate, he mentioned there have been “severe issues” amongst member states in regards to the Fee’s lack of motion concerning the fuel cap.

Within the morning, Teresa Ribera, Spain’s minister for the ecological transition, was extra specific.

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“We’re upset with the Fee’s non-proposal,” she mentioned. “The Fee is conscious this can be a delicate matter and has not managed to seek out the house wherein all nations can reply positively.”

However not all people is eager on capping fuel costs. Austria, Hungary, the Netherlands, Denmark and, crucially, Germany are amongst these opposing the transfer, fearing a complete disruption of provides.

“Placing a hard and fast worth cap on fuel can solely be utilized when you say what occurs if not sufficient fuel involves Europe. As a result of that is my counter-question,” mentioned German Vice-Chancellor Robert Habeck on the finish of the ministerial assembly.

“And the one reply I at all times hear is that the [gas] scarcity will then be shared throughout Europe. However I do not suppose that is politically sustainable. That may carry Europe to its limits, in all probability to its finish.”

In a doc revealed on the eve of the assembly, the Fee defined {that a} cap on all fuel imports and transactions would upend market forces and require the creation of a “new entity” to make sure a good and uninterrupted distribution of provides among the many 27 member states.

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“Deciding on fuel flows administratively is with out precedent in Europe and there’s presently no one at EU degree (…) which has this expertise and technical functionality to undertake this job,” the doc reads.

Simone Tagliapietra, a senior fellow on the Bruegel suppose tank, was equally sceptical, arguing the broad cap would stumble upon the “complexities” of the fuel market and go away Europe “worse off.”

“At the moment’s measures symbolize compromise resolution to take care of worth indicators for demand discount whereas unlocking assets that nations can use to decrease vitality payments of households and companies,” Tagliapietra advised Euronews.

“However it’s not enough to repair all issues we’ve got after all. We actually don’t have any silver bullet right here. We want a mixture of options to get out of the woods.”

This text has been up to date to incorporate new reactions and developments.

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Flatulent cows and pigs will face a carbon tax in Denmark, a world first

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Flatulent cows and pigs will face a carbon tax in Denmark, a world first

COPENHAGEN, Denmark (AP) — Denmark will tax livestock farmers for the greenhouse gases emitted by their cows, sheep and pigs from 2030, the first country in the world to do so as it targets a major source of methane emissions, one of the most potent gases contributing to global warming.

The aim is to reduce Danish greenhouse gas emissions by 70% from 1990 levels by 2030, said Taxation Minister Jeppe Bruus.

As of 2030, Danish livestock farmers will be taxed 300 kroner ($43) per ton of carbon dioxide equivalent in 2030. The tax will increase to 750 kroner ($108) by 2035. However, because of an income tax deduction of 60%, the actual cost per ton will start at 120 kroner ($17.3) and increase to 300 kroner by 2035.

Although carbon dioxide typically gets more attention for its role in climate change, methane traps about 87 times more heat on a 20-year timescale, according to the U.S. National Oceanic and Atmospheric Administration.

Levels of methane, which is emitted from sources including landfills, oil and natural gas systems and livestock, have increased particularly quickly since 2020. Livestock account for about 32% of human-caused methane emissions, says the U.N. Environment Program.

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“We will take a big step closer in becoming climate neutral in 2045,” Bruus said, adding Denmark “will be the first country in the world to introduce a real CO2 tax on agriculture” and hoped other countries would follow suit.

New Zealand had passed a similar law due to take effect in 2025. However, the legislation was removed from the statute book on Wednesday after hefty criticism from farmers and a change of government at the 2023 election from a center-left ruling bloc to a center-right one. New Zealand said it would exclude agriculture from its emissions trading scheme in favor of exploring other ways to reduce methane.

In Denmark, the deal was reached late Monday between the center-right government and representatives of farmers, the industry, unions, among others, and presented Tuesday.

Denmark’s move comes after months of protests by farmers across Europe against climate change mitigation measures and regulations that they say are driving them to bankruptcy.

The Danish Society for Nature Conservation, the largest nature conservation and environmental organization in Denmark, described the tax agreement as “a historic compromise.”

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“We have succeeded in landing a compromise on a CO2 tax, which lays the groundwork for a restructured food industry -– also on the other side of 2030,” its head Maria Reumert Gjerding said after the talks in which they took part.

A typical Danish cow produces 6 metric tons (6.6 tons) of CO2 equivalent per year. Denmark, which is a large dairy and pork exporter, also will tax pigs although cows produce far higher emissions than pigs.

The tax is to be approved in the 179-seat Folketing, or parliament, but the bill is expected to pass after the broad-based consensus.

According to Statistic Denmark, there were as of June 30, 2022, 1,484,377 cows in the Scandinavian country, a slight drop compared to the previous year.

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Read more of AP’s climate coverage at http://www.apnews.com/climate-and-environment

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Associated Press writer Charlotte Graham-McLay in Wellington, New Zealand, contributed to this report.

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Evan Gershkovich's closed-door trial on espionage charges begins in Russia, where a conviction is expected

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Evan Gershkovich's closed-door trial on espionage charges begins in Russia, where a conviction is expected

Wall Street Journal reporter Evan Gershkovich’s trial in Russia on espionage charges is starting Wednesday behind closed doors in the city of Yekaterinburg.

Gershkovich, 32, was arrested in March 2023 in Yekaterinburg on espionage charges, with Russian authorities alleging he was gathering secret information for the CIA, a claim he, his employer and the U.S. government deny.

“Evan Gershkovich is facing a false and baseless charge. … The Russian regime’s smearing of Evan is repugnant, disgusting and based on calculated and transparent lies. Journalism is not a crime,” Wall Street Journal publisher Almar Latour and chief editor Emma Tucker said after his trial date was announced. “We had hoped to avoid this moment and now expect the U.S. government to redouble efforts to get Evan released.”

He is the first known Western journalist to be arrested on espionage charges in post-Soviet Russia.

WSJ REPORTER EVAN GERSHKOVICH SET TO BEGIN ESPIONAGE TRIAL ON JUNE 26

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Wall Street Journal reporter Evan Gershkovich stands in a glass cage in a courtroom in Yekaterinburg, Russia, Wednesday, June 26, 2024. (AP)

The journalist appeared in the courtroom Wednesday morning in a glass cage, with his head shaven, according to The Associated Press.

Gershkovich’s appeals seeking his release have thus far been rejected.

“Evan has displayed remarkable resilience and strength in the face of this grim situation,” U.S. Ambassador to Russia Lynne Tracy said on the anniversary of Gershkovich’s arrest.

If convicted, which is expected, Gershkovich faces up to 20 years in prison. Russian courts convict more than 99% of defendants and prosecutors can appeal sentences that they believe to be light. Prosecutors can even appeal acquittals.

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The Russian Prosecutor General’s office said Gershkovich is accused of gathering secret information on orders from the CIA about Uralvagonzavod, a plant that produces and repairs military equipment about 90 miles north of Yekaterinburg.

Gershkovich dressed in black in Moscow court box

If convicted, Gershkovich faces up to 20 years in prison. (NATALIA KOLESNIKOVA/AFP via Getty Images)

Another American detained in Russia, American corporate security executive Paul Whelan, was arrested in Moscow for espionage in 2018 and is serving a 16-year sentence.

Gershkovich’s arrest came about a year after Russian President Vladimir Putin pushed laws that drew concerns about journalism in the country, criminalizing criticism of the war against Ukraine and statements viewed by officials as discrediting the military. 

Foreign journalists largely left the country after the laws passed. Many gradually moved back in subsequent months, but concerns still remained about whether Russian authorities would take action against them.

Several Western reporters have been forced to leave following Gershkovich’s arrest because Russia would not renew their visas.

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WSJ REPORTER EVAN GERSHKOVICH ORDERED TO STAND TRIAL IN RUSSIA ON CHARGE OF ‘GATHERING SECRET INFORMATION’

Gershkovich being escorted to a van

Wall Street Journal reporter Evan Gershkovich is escorted from the Lefortovsky court in Moscow, Russia, Friday, Jan. 26, 2024. (AP Photo/Alexander Zemlianichenko)

Following Gershkovich’s arrest, many feared Russia was targeting Americans amid tensions with the U.S.

Russia has suggested a prisoner exchange for Gershkovich could potentially happen in the future, but such a swap is not possible until a verdict is reached in his case. Putin has floated the idea that he might be interested in freeing Vadim Krasikov, a Russian imprisoned in Germany for the assassination of a Chechen rebel leader.

In 2022, Russia and the U.S. worked out a swap that released WNBA star Brittney Griner, who was serving a 9 1/2-year sentence for cannabis possession in Russia, in exchange for arms dealer Viktor Bout, also known as “the Merchant of Death.”

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The Biden administration would likely be sensitive when negotiating a swap for Gershkovich, not wanting to appear to be giving away too much after intense criticism of trading Bout for Griner.

The Associated Press contributed to this report.

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US journalist Gershkovich on trial in Russia over spying charges he denies

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US journalist Gershkovich on trial in Russia over spying charges he denies

American journalist Evan Gershkovich went on trial behind closed doors in Russia on charges of espionage 15 months after he was arrested in the city of Yekaterinburg.

The 32-year-old Wall Street Journal reporter appeared in a glass cage in the Yekaterinburg courtroom on Wednesday, with his head shaven clean and wearing a black-and-blue plaid shirt.

Gershkovich is accused by prosecutors of gathering secret information about Uralvagonzavod, a plant manufacturing tanks for Russia’s war in Ukraine, on the orders of the Central Intelligence Agency (CIA).

Prosecutor Mikael Ozdoyev claimed there was proof that Gershkovich “on the instructions of the CIA … collected secret information about the activities of a defence enterprise about the production and repair of military equipment in the Sverdlovsk region”.

The court said the next hearing will be held on August 13.

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The US Embassy in Russia on Wednesday called for Gershkovich’s release and said the “Russian authorities have failed to provide any evidence supporting the charges against him, failed to justify his continued detention, and failed to explain why Evan’s work as a journalist constitutes a crime”.

The Journal said the “secret trial” will “offer him few, if any, of the legal protections he would be accorded in the US and other Western countries”.

The reporter, his employer and the United States government vigorously deny the allegations, saying he was just doing his job, with accreditation from Russia’s Ministry of Foreign Affairs.

On Tuesday, the Journal’s editor-in-chief, Emma Tucker, wrote in a letter to readers that Russian judicial proceedings are “unfair to Evan and a continuation of this travesty of justice that already has gone on for far too long”.

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Tucker said: “This bogus accusation of espionage will inevitably lead to a bogus conviction for an innocent man.”

If convicted, Gershkovich faces a sentence of up to 20 years in prison. A verdict could be months away because Russian trials often adjourn for weeks.

Tucker noted that even covering Gershkovich’s trial “presents challenges to us” and other media “over how to report responsibly on the proceedings and the allegations”.

“Let us be very clear, once again: Evan is a staff reporter of The Wall Street Journal. He was on assignment in Russia, where he was an accredited journalist,” she wrote.

The case, the US Embassy wrote on X, “is not about evidence, procedural norms or the rule of law. It is about the Kremlin using American citizens to achieve its political objectives”.

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‘Hostage diplomacy’

The American-born son of immigrants from the Soviet Union, Gershkovich is the first Western journalist to be arrested on espionage charges in post-Soviet Russia.

His detention came about a year after President Vladimir Putin pushed through laws that chilled journalists, criminalising criticism of the war in Ukraine and statements seen as discrediting the military.

After his arrest on March 29, 2023, Gershkovich was held in Moscow’s Lefortovo prison. His appeals for release have been repeatedly rejected.

The proceedings will take place behind closed doors, meaning that the media is excluded and no friends, family members or US embassy staff are allowed in to support him.

Putin has indicated that Russia is open to the idea of a prisoner exchange involving Gershkovich and others, claiming that contacts with the US have taken place, but that they must remain secret.

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The US has in turn accused Russia of conducting “hostage diplomacy”.

It has designated Gershkovich and another jailed American, security executive Paul Whelan, arrested in Moscow for espionage in 2018, as “wrongfully detained”, thereby committing the government to assertively seek their release.

In its statement, the US Embassy said Russia should stop using people like Gershkovich and Whelan “as bargaining chips”. “They should both be released immediately,” it said.

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