EU wants to invest EUR 100 bn in clean tech but scale back ESG rules

EU outlines EUR 100 bn industrial decarbonization plan: The European Commission is proposing a EUR 100 bn Industrial Decarbonization Bank to ramp up support for energy-intensive industries struggling with high costs and regulatory hurdles in the green transition starting 2026, according to a statement released on Wednesday. The plan also includes amending InvestEU to mobilize an additional EUR 50 bn in private financing and launching a EUR 1 bn pilot auction this year for decarbonization projects in different sectors. The proposal — to be backed by the Innovation Fund and the Emissions Trading Scheme (ETS) revenues — is part of the EU’s Clean IndustrialDeal(pdf).

ALSO- The European Commission has proposed scaling back ESG rules for most businesses in Europe to cut red tape and boost competitiveness, according to a statement released on Wednesday. The proposed changes are part of the EU’s omnibus simplification package affecting four key pillars of the European Green Deal: the Corporate Sustainability Reporting Directive (CSRD), the EU taxonomy on sustainable investment, the Corporate Sustainability Due Diligence Directive (CSDDD), and the Carbon Border Adjustment Mechanism (CBAM). Changes are still being negotiated and must be approved by the European Parliament and the majority of EU states.

Some players were pushing for the scale back… including in our region: Qatar Energy CEO Saad Al-Kaabi went on the offensive against challenges and penalties from the ESG rules in December. Germany and France, alongside major businesses like Unilever and TotalEnergies, are also pushing against the rules, arguing that they make it harder for European firms to compete with US and Asian counterparts.

But some were against it: A coalition of European institutional investors representing EUR 6.6 tn urged EU officials earlier this month to resist pressure to scale back ESG regulations, arguing that the bloc’s reporting rules are critical for capital allocation.

Tesla recalls 376k EVs over steering issues: Tesla is recalling around 376k EVs in the US due to a power steering assist failure that could make steering hard, particularly at low speeds, raising crash risks, Reuters reported on Friday. The recall covers certain 2023 Model 3 sedans and Model Y crossovers running older software. The automaker identified 3k warranty claims and 570 field reports potentially linked to the issue but reported no crashes.

This marks Tesla’s second major recall this year, following the recall of 239k vehicles inJanuary over malfunctioning rear-view cameras.

The details: The recall follows a year-long National Highway Traffic Safety Administration probe after owners reported steering failures, with over 50 vehicles allegedly towed due to the same issue. Tesla released an over-the-air software update in October to fix the problem but didn’t file the recall report until this week, saying that 99% of affected vehicles had installed the update as of 23 January.