Category: Policy Watch

EU’s CBAM and Carbon Pricing Diplomacy

2026 is a crucial year for the EU to advance a more comprehensive diplomatic agenda on the CBAM to support its global partnerships. The EU has built an impressive toolkit for international cooperation on carbon pricing, but the patchwork of positive examples is still overshadowed by continued CBAM criticism. Addressing this now will ensure that trade partner concerns do not hinder progress in EU bilateral relationships and multilateral spaces further down the line. By repositioning the CBAM as a central component of a coherent trade and climate toolkit, the EU can strengthen its global relationships, sustain its long-term industrial decarbonisation pathway and reinforce its role as a trusted partner.

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Europe’s Energy Security

EU energy security policy guarantees that all households and essential services are protected in case of crisis. For this reason, the gas security of supply framework designates households and essential social services. These customer categories in turn receive special protection, to avoid that they are disconnected during an energy crisis. For electricity, EU countries can protect users against disconnection if personal security or public safety are at risk. Even during the worst of times, EU countries are required to help each other out and offer solidarity. This means that EU countries will send gas or electricity to a neighbouring EU country in need.

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Maine’s New Plug-in Solar Law

A new plug-in solar law passed in April 2026 clears the way for Maine renters, homeowners, and local business owners to take advantage of clean, cheap solar power to reduce their electricity bills. These small, portable solar panels are expected to generate a lot of interest because they’ll give Mainers the opportunity to generate solar power right at home to offset electricity use. A typical kit consists of between one and up to four to six solar panels, an inverter, and a plug, with the option of a battery.  Now Mainers will be well positioned to make their own energy decisions, reduce their high electric bills, and take direct advantage of the cheapest energy on the planet.  

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UK government to make plug-in solar available within months

The UK government has introduced rules to step up the drive for clean homegrown power to get the country off dependency on fossil fuel markets in response to the Iran war. The rules aim to ensure the majority of new homes in England will come with solar panels fitted as standard. The move will enable households to save money on bills through plug-in solar panels as the government vows to go further and faster on clean energy in response to conflict in the Middle East. The current conflict is a reminder for the country to end dependence on fossil fuel markets and accelerate the drive for clean, homegrown power, as well as new renewables and nuclear.

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Federal Government Launches the Climate Plan 2024-2035 and Sets Guidelines for Brazil’s Climate Transition

On March 16, 2026, Brazil’s Federal Government launched the new National Climate Change Plan, a central instrument of the National Policy on Climate Change (PNMC), establishing guidelines and targets to steer greenhouse gas emissions mitigation and climate adaptation efforts in Brazil over the next decade. The Climate Plan consolidates Brazil’s strategy to implement its Nationally Determined Contribution, which provides for a reduction in net emissions of between 59% and 67% by 2035 (compared to 2005 levels), as well as the achievement of climate neutrality by 2050.

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South Africa’s New Unbundling Model: Delinks grid assets from future TSO

South Africa’s power sector reforms have taken a new turn and are back in the spotlight. The country’s electricity minister, in December 2025, approved the state-owned utility Eskom’s revised unbundling strategy. Under the structure, a new holding company will be established with four subsidiaries – National Electricity Distribution Company of South Africa to strengthen distribution networks; GenerationCo to hold legacy generation assets; Eskom Green – a new subsidiary to house Eskom’s renewable energy business; and the National Transmission Company of South Africa SOC Limited.

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Germany’s 2025 NEP: Adapting grid planning to new market conditions

Germany has set the goal of achieving climate neutrality by 2045, placing its electricity transmission system at the centre of the energy transition. By 2030, installed capacity is expected to reach 215 GW of solar PV, 115 GW of onshore wind and 30 GW of OSW. By 2045, these figures rise to 400 GW of photovoltaics, 160 GW of onshore wind, and 70 GW of OSW. The 2025 NEP anticipates installing large storage capacities between 41 and 94 GW by 2045, which were estimated at 43-55 GW in the earlier plan. Overall, NEP 2037/2045 (2025) marks a decisive shift in Germany’s grid planning philosophy.

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Policy Landscape for Geothermal Energy Development in US

While recent capacity gains have been modest, there are reasons to believe that the geothermal market could experience rapid growth in the near term. Market growth could result from anticipated improvements to both mature and emerging technologies, as well as emerging value-added uses. The expected load growth in the electric grid due to the proliferation of data center and industrial manufacturing hubs across the US is anticipated to increase the demand for baseload, flexible, and resilient energy sources like geothermal.

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Australia’s Energy Shift: AEMO publishes draft 2026 Integrated System Plan

To efficiently manage the long-term power system development, the Australian Energy Market Operator (AEMO), in December 2025, released the draft 2026 Integrated System Plan (ISP). The draft 2026 ISP reaffirms that renewable energy, connected by transmission and distribution, firmed with storage and backed up by gas, remains the least-cost pathway to supply secure and reliable electricity as coal retires through 2050. Translating this plan into reality requires coordinated action to overcome delivery constraints.

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Nigeria’s Electricity Devolution Law Creates an Opportunity to Reshape Its Power System

The Electricity Act 2023 is more than just a policy reform, it is an invitation to reimagine Nigeria’s energy future through bottom-up innovation, state-driven leadership, and a coordinated national vision. It is therefore imperative for development partners to collaborate with state authorities to help shape an energy transition that aligns with national goals. Moreover, aligning state-level planning with strong, decentralized market structures presents an opportunity to increase grid resilience and supply availability and reliability at optimal cost.

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Europe Proposes The European Grids Package

The backbone of the European energy system, the grids infrastructure, will be modernised and expanded to unleash its full potential. The European Grids Package and the Energy Highways initiative, proposed, will enable energy to flow efficiently across all Member States, integrating cheaper clean energy and accelerating electrification. This will support affordable living for all Europeans. It will ensure secure and reliable supply as Europe moves away from Russian energy imports to achieve energy independence.

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US FERC to Widen Authority: DOE asks regulator to make large load interconnection rules

The US is witnessing an unprecedented rise in electricity demand, driven by AI-based data centres, semiconductor fabrication plants and other energy-intensive industries, which are straining the existing transmission and interconnection framework. In line with the US administration’s broader goals to strengthen domestic manufacturing, support AI infrastructure, and ensure that access to the transmission grid remains efficient, timely and non-discriminatory, the US DOE, on October 23, 2025, directed the FERC to begin the rulemaking process on establishing standardised interconnection procedures for large electrical loads.

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Policy Developments in Europe’s Hydrogen Sector

Despite numerous project cancellations and postponements, including some striking ones, the European hydrogen sector has seen notable progress. As the market gradually grows, there is a need to develop market rules that govern the use and operation of the hydrogen network. Germany is a front-runner, reflecting its high ambitions, but other Member States are following. Denmark is also developing a financing framework and is working on the access rules for the hydrogen network, while Belgium is currently analysing options for the market design.

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US DOE’s Speed to Power: To accelerate large-scale grid projects to support AI

The US DOE, through its Grid Deployment Office, launched the Speed to Power initiative to speed up the development of large-scale power transmission and generation projects, to enable the grid to meet the growing energy demands from AI and manufacturing. The initiative aims to accelerate the development of such projects, starting with a RFI titled, “Accelerating Speed to Power/Winning the AI Race: Federal Action to Rapidly Expand Grid Capacity and Enable Electricity Demand Growth”, to get input into near-term investment opportunities, project readiness, load growth expectations and infrastructure constraints that DOE can address.

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Energy Transition Policy Framework in Brazil

Brazil’s primary energy objective is to ensure a sufficient energy supply to support its economic growth. Historically, the country has also been an energy importer, however. Therefore, to achieve the goal of supply security, the country has developed a series of public policies that focus on fostering competitive domestic solutions. These public policies have played a crucial role in diversifying energy sources, strengthening energy security and taking advantage of national resources. They have also resulted in a reliable, affordable and low-emissions energy mix for Brazilian society. 

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Policies for Agri-PV Development across Europe

European Commission should develop an EU-wide definition and support MS in defining the agrisolar on the national level. Providing a clear definition of agrisolar, which refers to the dual use of land concept, is critical to ensure clarity for farmers, developers and authorities. The NextGeneration EU funds, allocated to the European Investment Bank (EIB) and national public banks, should support the de-risking of innovative renewable projects, including agrisolar.

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Green Transition in Denmark’s Island Communities

The experiences of Fejø, Venø, and other small Danish islands  show a growing tension between two national priorities: protecting nature on one side and advancing  the green transition on the other side. Danish islands are not just passive recipients of national policy; they are practical examples of  innovation, self-sufficiency, and community-driven climate action. However, under the current  approval system, their plans to replace outdated wind turbines and contribute to national climate goals are often slowed or blocked by complex procedures, even when the projects pose minimal  environmental risk. 

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Onshore Grid Competition in UK: Ofgem publishes decision on commercial framework

In July 2025, the UK’s energy regulator, Ofgem, published its final decision and updated policy position on the onshore electricity transmission early competition commercial framework. The latter will apply to CATOs, which will finance, build, operate and maintain assets on the electricity transmission network. The framework is being implemented in line with the Energy Act, 2023, and associated secondary legislation, which created the statutory basis for CATOs. The approach complements the government’s Clean Power 2030 Action Plan, recognising the critical role of timely transmission build-out for integrating renewable generation.

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Policy Developments in Europe’s Biogas Sector

In 2024, EU production of biogases increased 3%. Growth was modest in biogas (1% year on year), but significantly higher for biomethane (14% year on year). The production of biogas, used primarily for electricity and CHP generation, is highly concentrated in Germany (53% of EU production). Following a period of decline, interest in biogas is reviving. Overall, achieving the EU 35-bcm target by 2030 will require a marked acceleration in growth across both mature and emerging markets.

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Policy Roadmap for Variable Renewable Energy Integration in SEA

Southeast Asia can successfully transform its power system to reliably and affordably meet growing electricity demand. This is possible with a progressive approach that aligns VRE integration measures with local contexts. It also involves building the technical and institutional capabilities to manage effectively higher VRE penetrations. This extract outlines a practical implementation roadmap with actionable steps for key stakeholders in Southeast Asia. These include policymakers, regulators, regional bodies and utilities. The roadmap draws on the regional opportunities, global experience in navigating from low to higher phases of VRE integration and the current readiness assessment. 

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