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By Sharon Kimathi, Energy and ESG Editor, Reuters Digital

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This week sees politicians and energy firms from Ukraine plan how to rebuild the country’s economy with green technology and Berlin map out its green transition journey, although  Germany, like other EU nations, is struggling to wean itself off the most CO2-emitting fossil fuel – coal.

War-torn Ukraine is seeking up to $40 billion to fund the first part of a “Green Marshall Plan” to rebuild its economy, a senior Ukrainian government official told Reuters ahead of a summit this week.

Politicians and financiers will discuss the country’s short-term funding issues as well as look at long-term reconstruction efforts at the two-day meeting, starting in London on Wednesday and co-hosted by Ukraine and Britain.

An employee works during the production of iron at Yenakiyeve Iron and Steel Works in the Donetsk region, Russian-controlled Ukraine, May 26, 2023. REUTERS/Alexander Ermochenko 

Giving the figure of $40 billion for an initial phase of reconstruction, Rostyslav Shurma, a deputy head of President Volodymyr Zelenskiy’s office, said the first focus would be the iron and steel industry.

The sector contributed around 10% of Ukrainian GDP in 2021, a third of export revenues and employed around 600,000 people. It also accounted for 15% of the country’s carbon emissions and Shurma said there was now an opportunity to build an industry driven by renewable energy.

“If you have to rebuild, it is logical to rebuild green in line with new technologies… Our vision is to build a 50 million tonnes green steel industry in Ukraine,” he told Reuters.

Doing so would allow the country to become the world’s cheapest supplier of green steel and a major support to Europe’s efforts to decarbonise, driven by an investment push in new wind, solar, nuclear and hydro power.

Speaking of green transitions, Eastern Germany’s historic mining belt could get a new lease of life thanks to plans to build the country’s largest battery park at the site of Boxberg, a coal-fired power plant on the Polish border.

The project, unveiled by the Czech-owned mining and power company LEAG, involves building a 200-million-euro ($218 million) facility to store  wind and solar energy that will gradually replace the sprawling coal pits of the Lusatia region.

Chancellor Olaf Scholz’s government plans to accelerate the phase-out of coal power towards a carbon neutral economy by as early as 2030 versus the agreed target of 2038.

But the transition, and efforts to accelerate it, got a mixed welcome in a region that remains skeptical about its social and ecological impact and the technical challenges to be overcome. People are concerned about the thousands of mining jobs that will eventually disappear. Many of LEAG’s 8,000 coal workers are expected to retire by 2030 or retrain in renewable energy.

While Green activists have held regular protests in Lusatia demanding an exit from coal, and advocates urge a 2030 phaseout citing rising global temperatures, local politicians are pushing back against the pace of change.

But it’s not just Germany struggling to phase out coal, as a late proposal to extend subsidies for coal plants has upset European Union countries’ plans to approve a reform of the bloc’s power market, which was designed to shift the electricity system towards cleaner energy. 

Coal is the most CO2-emitting fossil fuel. Scientists say its use must plummet this decade if the world is to avoid the most severe impacts of climate change.

A model presents creations by local designers during a Juneteenth celebration in Brooklyn, New York, U.S., June 19, 2023. REUTERS/Amr Alfiky

Tony Bosworth, climate campaigner at the global environmental organization Friends of the Earth, shares his thoughts on the UK government reportedly planning to remove a ban on new coal mines from the Energy Bill:

“It’s little wonder the UK is struggling to reap the huge benefits from building a clean and modern energy system while our government’s policies are stuck in the past.

“Among the world’s scientists, the U.N., the UK government’s independent climate advisors and the International Energy Agency there is widespread agreement that new fossil fuel projects must end to avert climate breakdown.

“But ministers seem determined to ignore this advice and continue delaying the urgent transition to a zero-carbon economy needed to secure a safe, green future. 

“Coal belongs in the history books. MPs of all parties should support the Lords’ amendment, signal an end to more coal mining and focus on the UK’s immense potential for clean, renewable energy.

“Ending new fossil fuel developments and investing in energy efficiency will slash emissions, boost the economy, create hundreds of thousands of new jobs, increase energy security and help bring down our energy bills.”

When President Joe Biden signed his signature Inflation Reduction Act last August, he hailed the collection of green energy tax credits as a major victory for climate change, and flagged “another win” for the American people: cutting the deficit.

Credit Suisse estimates total federal spending under the IRA will be over $800 billion, fueling total public and private investment to nearly $1.7 trillion. The popularity of the bill’s clean energy tax credits will have a significant environmental impact, analysts say.

A loggerhead turtle walks towards the sea near the Mediterranean Sea in Gandia, near Valencia Spain June 19, 2023. Oceanographic Foundation of Valencia/Handout via REUTERS

Today’s spotlight shines a light on the increased presence of loggerhead turtles in Spain due to climate change. Elsewhere, the U.N. adopts the world’s first treaty to preserve marine biodiversity  – such as the loggerhead turtle – and protect the high seas.

Two loggerhead turtles have laid their eggs on two separate Spanish beaches over the past 48 hours, as the endangered species moves further west, which scientists say could be due to climate change. 

One turtle laid 80 eggs in the town of Denia, and another laid 62 in Gandia, which are both in the eastern Valencia region, the Oceanographic Foundation said.

Loggerheads turtles used to nest mainly in the eastern Mediterranean, in countries such as Turkey, Cyprus and Greece, but for some years the coasts of Spain, France and Italy have been recording an increased presence of loggerhead turtle egg clutches.

A Caretta Caretta turtle swims in its pond at the Taliarte Wildlife Recovery Center, in the island of Gran Canaria, Spain, March 24, 2023. REUTERS/Borja Suarez

The U.N. has adopted the world’s first treaty to protect the high seas and preserve marine biodiversity in international waters, marking a milestone after nearly 20 years of effort, said U.N. Secretary-General Antonio Guterres.

The adoption followed an agreement reached in March by more than 100 countries on the text of the High Seas Treaty, also known as the Biodiversity Beyond National Jurisdiction treaty, after more than 15 years of discussions and five rounds of U.N.-led negotiations.

“[Senior British government minister] Michael Gove’s rationale for approving a new UK coal mine, that would extract and export coal until 2050, was seriously flawed, and involves issues of national and international importance that must be examined.”

Carole Wood, Chair of Cumbria-based charity, South Lakes Action on Climate Change (SLACC)

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