Debates about tax fairness usually centre on income: how much people earn, how steeply high incomes should be taxed, and how to protect those on lower wages. Yet an older idea is re-emerging in economic discussion: taxing what people spend rather than what they earn. This shift is not a minor technical adjustment. A progressive consumption tax, in which people who spend more face higher effective tax rates, behaves very differently from a progressive income tax, especially when real human behaviour over a lifetime is taken into account.
Continue reading “The case for a progressive consumption tax reform”Europe’s rare earths supply chain dilemma
Europe’s effort to secure its access to critical minerals has exposed a major strategic weakness: overwhelming dependence on China for rare earths. This vulnerability became unmistakably clear when China tightened export licensing for rare-earth magnets, cutting shipments by roughly 75 percent and forcing European automakers to halt production. The episode highlighted how deeply Europe’s industrial base, green transition, and advanced technologies depend on a fragile rare earths supply chain concentrated in a single country.
Continue reading “Europe’s rare earths supply chain dilemma”The global retreat from net zero commitments
Nearly a year after Donald Trump returned to the White House championing fossil fuel expansion, resistance to climate commitments is gaining momentum across politics, industry, and finance. The global pushback against net zero reflects a widening gap between long-term climate goals and short-term economic and political pressures. Companies and governments are increasingly scaling back emissions pledges, prioritising profitability, energy security, and electoral appeal over decarbonisation.
Continue reading “The global retreat from net zero commitments”AI carbon footprint rivals cities and nations
A new study warns that the rapid expansion of artificial intelligence could carry a significant and largely hidden environmental cost. By 2025, AI systems running in data centres could generate between 32.6 million and 79.7 million tonnes of carbon dioxide annually, placing the AI carbon footprint on par with the total emissions of major cities or even entire countries. At the upper end of the estimate, AI-related emissions could approach 80 million tonnes of CO₂, comparable to New York City’s reported 52.2 million tonnes in 2023. Even the lower bound aligns closely with Norway’s national emissions, estimated at around 31.5 million tonnes, highlighting the scale of AI’s growing climate impact.
Continue reading “AI carbon footprint rivals cities and nations”Pumped hydro evolves with high-density storage
In late November, engineers in Devon, England quietly began testing a novel twist on a century-old energy storage idea. At a former china clay mine near Plymouth, workers carefully mixed a mineral-based powder into water to create a fluid 2.5 times denser than water but still able to flow easily. This unusual liquid is the core of a demonstration project by British startup RheEnergise, which aims to rethink pumped hydro by dramatically reducing the space and elevation traditionally required.
Continue reading “Pumped hydro evolves with high-density storage”European Commission eases environmental rules
The European Union’s executive arm has unveiled a sweeping proposal to simplify environmental legislation, arguing that cutting red tape is necessary to improve competitiveness for European industry. At the center of this move is the European Commission, which says it is responding to long-standing complaints from businesses and public administrators that complex environmental rules create excessive administrative burdens. Environmental organizations, however, warn that the changes amount to a rollback of hard-won protections and offer a significant reprieve for major polluters.
Continue reading “European Commission eases environmental rules”Europe’s energy shift hits a labor shortage wall
The European Union’s plan to completely phase out Russian natural gas imports by 2027 marks a historic turning point in Europe’s energy and geopolitical strategy. Announced as “the end of an era” by International Energy Agency (IEA) Executive Director Fatih Birol alongside European Commission President Ursula von der Leyen, the policy reflects Europe’s determination to eliminate a major strategic vulnerability exposed by Russia’s invasion of Ukraine. Yet as the commitment solidifies at the political level, a more practical constraint is becoming impossible to ignore: the continent may not have enough skilled workers to build the infrastructure needed to replace Russian gas.
Continue reading “Europe’s energy shift hits a labor shortage wall”EU energy policy and Europe’s grid overhaul
The European Commission has unveiled a major initiative to accelerate the modernisation of the European Union’s ageing electricity grid, positioning grid expansion and interconnection as a central pillar of EU energy policy. Through its proposed “Grids Package,” the Commission aims to broker political compromises among member states, overhaul existing legislation, and speed up permitting for electricity infrastructure, storage facilities, and renewable energy integration. The initiative reflects growing concern that Europe’s current grid is no longer fit for purpose in an era of rapid electrification, rising renewable deployment, and heightened energy security risks.
Continue reading “EU energy policy and Europe’s grid overhaul”Circular battery economy enters rapid growth
The global circular battery economy is entering a critical phase of rapid expansion, driven by surging demand for electric vehicles and the strategic necessity of securing critical minerals. A new industry report projects that the market will grow from $23.29 billion in 2024 to nearly $78 billion by 2032, reflecting the accelerating shift toward recycling as a core pillar of the clean energy transition. Once seen primarily as an environmental solution, battery recycling has now become a geopolitical and economic priority as nations race to protect supply chains for lithium, cobalt, and nickel.
Continue reading “Circular battery economy enters rapid growth”Defeating plastic pollution by 2040
New global research shows that the 66 million tonnes of waste entering the environment each year from plastic packaging could be almost completely eliminated by 2040 through reuse and return schemes. The analysis, led by the Pew Charitable Trusts in collaboration with researchers from Imperial College London and the University of Oxford, warns that the world is heading toward a severe environmental and public health crisis if current trends continue. Without intervention, plastic pollution is projected to more than double within 15 years, reaching 280 million tonnes annually—equivalent to a truckload of plastic being dumped into nature every second. The consequences would ripple across ecosystems, economies, and human health worldwide.
Continue reading “Defeating plastic pollution by 2040”