(SDGTALKING) - Dilek Kaya - As the US focuses on loosening regulations in its policies to combat climate change, the world's leading economies are increasing their investments in green energy and accelerating their carbon neutrality targets.
China's Giant Investment Plan for Climate
China, the world's largest carbon emitter, has announced a comprehensive investment plan in line with its emission reduction targets. In the official report published by China's National Development and Reform Commission, it was stated that the country will peak its carbon emissions by 2030 and aims to become carbon neutral by 2060. In this framework, China will focus on offshore wind energy projects and establish large-scale “new energy bases” in vast desert areas. These projects are expected to increase renewable energy production and reduce dependence on fossil fuels.
UK Reshapes Oil and Gas Tax Policies
The UK government has also decided to review its regulations in the energy sector. With the current taxation policies set to expire in 2030, it plans to restructure its windfall tax regime for oil and gas producers in line with its goal of making the North Sea a renewable energy hub.
The UK has requested feedback from actors and experts in the energy sector on the so-called “excess revenue” taxation policies by May 28. Last year, the Labour government increased the windfall tax on oil and gas producers from 35% to 38% and extended its application period until March 2030, bringing the total tax rate on the sector to 78%. This tax is considered one of the heaviest burdens on energy producers globally.
European Union Sticks to Emission Targets
The European Commission has confirmed its target for all new cars and vans sold in the European Union to be zero-emission by 2035. While the regulation, which sets strict emission targets for automakers, has increased pressure on the sector, the EU executive agreed to extend the deadline for carmakers to avoid heavy fines from one to three years.
Despite this, EU officials emphasized that the interim target set until 2030 will remain unchanged. “We are sticking to the 2035 targets, which means we will stick to the 2025, 2030 and of course the 2035 targets,” said Transport Commissioner Apostolos Tsitsikostas.
The US Backdown and the Global Trend
While the US administration has taken steps to loosen environmental regulations for the energy sector under Trump, major economies globally are adopting more ambitious policies to combat climate change. Countries such as China, Europe and the UK appear to have taken the lead in the fight against climate change by increasing investments in renewable energy and tightening emissions targets.
