SAO PAULO (ICIS)–Braskem is to divest its controlling stake at Upsyde, a recycling joint venture in the Netherlands, as the company aims to focus on its core chemicals and plastics production, the Brazilian polymers major said. The joint venture with Terra Circular was announced in 2022 and is still under construction. When operational, it will have production capacity of 23,000 tonnes/year of recycled materials from plastic waste. Braskem’s exit from Upsyde is likely related to the company’s pressing need to reduce debt and increase cash flow rather than a rethinking of its green targets, according to an anonymous chemicals equity analyst at one of Brazil’s major banks. Braskem’s spokespeople did not respond to ICIS requests for comment at the time of writing. The two companies never officially announced the plant’s start-up, and in its annual report for 2024 (published Q1 2025) Braskem still spoke about the project as being under construction. “Upsyde is focused on converting hard-to-recycle plastic waste through patented technology to make circular and resilient products 100% from highly recyclable plastic,” it said at the time. “Upsyde aims to enhance the circular economy and will have the capacity to recycle 23,000 tonnes/year of mixed plastic waste, putting into practice a creative and disruptive model of dealing with these types of waste.” BACK TO THE COREBraskem said it was divesting its stake at Upsyde to focus on production of chemicals and polymers – its portfolio’s bread and butter – and linked the decision to the years-long downturn in the petrochemicals sector, which hit the company hard. Financial details or timelines were not disclosed in the announcement, published on the site of its Mexican subsidiary, Braskem Idesa. “Considering a challenging environment for the petrochemical industry and a prolonged downcycle exacerbated by high energy costs and reduced economic activity in Europe, Braskem is redirecting all resources toward its core business: the production of chemicals and plastics,” Braskem said. “We remain committed to our sustainability agenda, as demonstrated by our recent investment in expanding biopolymer capacity in Brazil and the development of a new biopolymer plant project in Thailand.” The company went on to say it will also continue to maintain “several active partnerships” to advance research and potential upscaling capabilities for chemical recycling, projects for some of which Braskem has signed agreements to be off-takers for specialized companies. The European plastics trade group EuropePlastics was until this week listing Upsyde as a project which would make a “tangible impact by upcycling mixed and hard-to-recycle” plastic waste in Europe. That entry, however, has now been taken down. Terra Circular and EuropePlastics had not responded to a request for comment at the time of writing. Braskem’s management said earlier in 2025 the green agenda remains key for its portfolio, adding it would aim to leverage Brazil biofuels success story to increase production of green-based polymers, a sector the company has already had some success with production of a ethanol-based polyethylene (PE), commercialized under the branded name Green PE. The other leg to become greener, they added, was a long-term agreement with Brazil’s state-owned energy major for the supply of natural gas to its Duque de Caxias, Rio de Janeiro, facilities to shift from naphtha to ethane. Last week, Braskem said that deal could unlock R4.3 billion ($785 million)  in investments at the site. GREEN STILL HAS WAY TO GOThe chemicals analyst who spoke to ICIS this week said for the moment there would be no sign of Braskem aiming to trim its green agenda, which has ambitious targets for 2030 in terms of production of recycled materials. He added Braskem’s shift from naphtha-based production to a more competitive ethane-based production will require large investments in coming years, so a strategy to increase cash flow as well as reduce high levels of debt would be divesting non-core assets and the divestment in the Dutch joint venture would be part of that plan. “Braskem has high debt levels, and they are looking for ways to reduce leverage. What they may be thinking is that, despite this divestment in a purely green project, they can still give a green spin to their operations if we consider the green PE, for which they have been expanding production,” said the analyst. “I don’t think they would be relinquishing or giving up any of their initiatives to go green, but I think it’s probably part of some initiatives they must increase efficiency and reduce costs and capital needs. So, they probably just saw this business as a main candidate to be divested.” Front page picture: Braskem’s plant in Triunfo, Brazil producting green PE Source: Braskem Focus article by Jonathan Lopez 

Ukraine’s high import needs spurs flurry of CEE gas-trading activity as more transmission corridors emerge Grid operators vie to offer attractive solutions, slashing tariffs or increasing capacity Increased CEE hub liquidity would breed further interest LONDON (ICIS)–Ukrainian gas incumbent Naftogaz has become the first company in central and eastern Europe (CEE) to use the Danish-Polish transit corridor for spot bookings to Ukraine, several traders active in the region told ICIS. Sources say there is a flurry of activity across theCEE gas market, driven primarily by high importing interest and soaring prices in Ukraine. Gas in Ukraine is trading at an estimated €9.30/MWh premium over the equivalent front-month TTF contract. A CEE trader said Naftogaz had made reservations on the Danish-Polish Baltic Pipe for a total of 1848MWh over three days to test the route, importing gas sourced on the local exchange. The Polish state incumbent Orlen holds a long-term booking for 8 billion cubic meters annually on the Baltic Pipe to Denmark. But the Danish grid operator Energinet is keen to market the remaining 2bcm/year capacity for North Sea gas or Danish VTP imports to other regional companies. A trader said the route was increasingly considered by companies due to the ease of doing business in Denmark. Anticipated lower short-term transmission tariffs in Poland and the doubling of firm export capacity from Poland to Ukraine were also cited as reasons. Last week Polish gas grid-operator Gaz-System and its Ukrainian counterpart, GTSOU announced the doubling of firm export capacity to Ukraine from six million cubic meters (mcm) daily to 11.5mcm/day from 1 July. LNG IMPORTS VIA POLAND, LITHUANIA Traders say they are also considering imports from Poland’s Swinoujscie  offshore terminal or Lithuania’s Klaipeda floating storage and regasification unit (FSRU). However, several noted that regional countries have limited market liquidity as the bulk of volumes is traded on the spot market. A source at the Klaipeda terminal told ICIS on 17 June that the company was planning to offer more regasification slots on a spot basis in upcoming months. He said that there are around 33 long-term contract unloadings each year, but operator KN Energies is planning to offer another four to five spot slots. He added  the terminal has a 30-day regasification capacity window which would fit the profile of standard monthly transmission-capacity bookings. RAPID CHANGES The CEE trader said the region was changing at a very rapid pace with grid operators vying to offer attractive solutions. Last month, transmission-system operators in south-east Europe said they would offer bundled firm export capacity from Greece to Ukraine at a discounted tariff. The first auction for Route 1 monthly bundled capacity will be held on 23 June and the five operators along the Trans-Balkan corridor will be holding a call with regional companies on 19 June to explain the new product. The CEE trader said: “We’ve seen a massive increase in firm export capacity from Poland to Ukraine. Moldova is reportedly planning to offer tariff discounts. “The Greek regulator is considering offering capacity for the superbundled capacity not only from LNG terminals but also from the VTP. Gaz-System said if Route 1 offers discounted tariffs they also may consider discounting tariffs. The southern route is more difficult from an operational point of view but it looks interesting,” the trader added.

BARCELONA (ICIS)–Europe’s chemical distribution sector is bracing for the impact of multiple geopolitical and economic challenges, including the Israel/Iran conflict. All Iran’s monoethylene glycol (MEG), urea, ammonia and methanol facilities have been shut down For methanol this represents more than 9% of global capacity, for MEG it is 3% Brent crude spiked from $65/bb to almost $75/bbl, against backdrop of reports of attacks on gas fields and oil infrastructure If Iran closes the Strait of Hormuz this will severely disrupt oil and LNG markets Expect extended period of volatility and instability in the Middle East European distributors brace for a VUCA (volatile, uncertain, complex, ambiguous) world Prolonged period of poor demand looms, with no sign of an upturn Global overcapacity driven by China, subsequent wave of production closures across Europe both a threat and opportunity for distributors Suppliers and customers turn to distributors to help navigate impact of tariffs and geopolitical disruption In this Think Tank podcast, Will Beacham interviews Dorothee Arns, director general of the European Association of Chemical Distributors and Paul Hodges, chairman of New Normal Consulting. Click here to download the 2025 ICIS Top 100 Chemical Distributors listing Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS. ICIS is organising regular updates to help the industry understand current market trends. Register here . Read the latest issue of ICIS Chemical Business. Read Paul Hodges and John Richardson’s ICIS blogs.

LONDON (ICIS)–Business confidence in Germany rose for the second month in a row in June on the back of growth in investment and consumer demand. The ZEW economic sentiment indicator for Germany increased to 47.5 points, up 22.3 points from May, the economic institute said on Tuesday. ZEW’s June indicator for the current situation in the country was also higher although still firmly in negative territory at -72 points, up by 10 points from May. “Confidence is picking up. In June 2025, the ZEW indicator sees another tangible improvement,” ZEW said. “Recent growth in investment and consumer demand have been contributing factors. This development also seems to strengthen the assessment that the fiscal policy measures announced by the new German government can provide a boost to the economy,” the group added. The eurozone’s economic sentiment indicator and current situation indexes were also higher in June from the previous month, rising to 35.3 points (up 23.7) and 30.7 points (up 11.7) respectively.

SINGAPORE (ICIS)–Malaysia’s revised sales and services tax (SST) framework officially takes effect on 1 July, with the expanded scope now set to include a 5% tax on an extensive range of petrochemical products, including polyethylene (PE) and polypropylene (PP). Critical raw materials for downstream industries affected Capital expenditure items like machinery now taxed Malaysian industry body calls for further delay in implementation The government had first announced the revision of items subject to the sales tax on 18 October 2024, as part of its fiscal consolidation strategy under the 2025 budget. Under the updated framework, more than 4,800 harmonized system (HS) codes will now fall under the 5% sales tax bracket. Goods exempted from the updated sales tax include specific petroleum gases and other gaseous hydrocarbons that are currently under HS code 27.11. These include liquefied propane, butanes, ethylene, propylene, butylene, and butadiene. In their gaseous state, the list includes natural gas used as motor fuel. The measure, aimed at broadening the country’s tax base and increasing revenue, was originally slated to begin on 1 May, but was delayed for two months after manufacturers urged policymakers to refrain from adding to their financial burden. The July revision of Malaysia’s sales tax and the expansion of the service tax scope involve several key changes. The sales tax rate for essential goods consumed by the public will remain unchanged, while a 5% or 10% sales tax will be applied to discretionary and non-essential goods. The scope of the service tax will be broadened to include new services such as leasing or rental, construction, financial services, private healthcare, education, and beauty services. This includes critical raw materials for various downstream industries, from plastics and packaging to automotive manufacturing. Previously, many of these materials were zero-rated under the SST. The Federation of Malaysian Manufacturers (FMM) has publicly criticized the decision, calling it “highly damaging to industries” in a statement released on 12 June. According to estimates by the Ministry of Finance, the SST expansion is expected to generate around ringgit (M$) 5 billion in additional government revenue in 2025. “Although this may support the government’s fiscal objectives, the additional tax burden will be largely borne by businesses and has serious implications for operating costs, investment decisions, and long-term business sustainability,” FMM president Soh Thian Lai said in a statement. Soh highlighted that with this expansion, around 97% of goods in Malaysia’s tariff system will now be subject to sales tax, representing a significant departure from a previously narrower tax base, to one where nearly all categories including industrial and commercial inputs are now taxable. Under the new sales tax order, 4,806 tariff lines are now subject to 5% tax, covering a wide range of previously exempt goods, according to the FMM. These include high-value food items, as well as a broad spectrum of industrial goods, such as industrial machinery and mechanical appliances, electrical equipment, pumps, compressors, boilers, conveyors, and furnaces used in manufacturing processes, it said. The 5% rate also applies to tools and apparatus for chemical, electrical, and technical operations, significantly broadening the range of taxable inputs used in production and operations. “The expanded scope now places a direct tax burden on machinery and equipment typically classified as capital expenditure. This includes items critical to upgrading production lines, automating processes, and scaling operations,” Soh said. The FMM “strongly urges the government to further delay the enforcement of the expanded SST scope beyond the scheduled date of 1 July”, until the review is complete, and industries are ready. They also calling for a broader exemption list, especially for capital expenditure items like machinery and equipment, and a re-evaluation of including construction, leasing, and rental services, which they warn will “increase operational expenses and are expected to cascade through supply chains.” “We are deeply concerned and caution that the untimely implementation of the expanded scope of taxes will exert inflationary pressure, as businesses already grappling with rising costs … may have no choice but to pass these additional burdens on to consumers,” the FMM added. The FMM has urged the government to postpone the implementation, citing insufficient lead time for businesses to adapt and calling for a comprehensive economic impact assessment. Malaysia’s manufacturing purchasing managers’ index (PMI) continued to contract in May, with a reading of 48.8, according to financial services provider S&P Global. Beyond the direct sales tax on goods, the revised SST also introduces an 8% service tax on leasing and rental services for commercial or business goods and premises. This could further compound cost burdens for capital-intensive sectors, including parts of the petrochemical industry that rely on leased machinery and industrial facilities. Focus article by Nurluqman Suratman Thumbnail image: PETRONAS Towers, Kuala Lumpur (Sunbird Images/imageBROKER/Shutterstock)

SINGAPORE (ICIS)–Singapore’s petrochemical exports in May fell by 17.8% year on year to Singapore dollar (S$) 968 million ($756 million), weighing down on overall non-oil domestic exports (NODX), official data showed on Tuesday. The country’s NODX for the month fell by 3.5% year on year to S$13.7 billion, reversing the 12.4% growth posted in April, data released by Enterprise Singapore showed. Non-electronic NODX – which includes chemicals and pharmaceuticals fell by 5.3% year on year to S$10 billion in May, reversing the 9.3% growth in April. Overall NODX to six of Singapore’s top 10 trade partners declined in May 2025, with falls in shipments to the US, Thailand, and Malaysia, while those to Taiwan, Indonesia, South Korea, and Hong Kong increased. Singapore is a leading petrochemical manufacturer and exporter in southeast Asia, with more than 100 international chemical companies, including ExxonMobil and Aster Chemicals & Energy, based at its Jurong Island hub. ($1 = S$1.28)

HOUSTON (ICIS)–Arrivals of container ships at the busy US West Coast ports of Los Angeles and Long Beach (LA/LB) are slowly returning to normal after the trade war between the US and China slowed cargo movement between the two nations, according to the Marine Exchange of Southern California (MESC). Kip Louttit, MESC executive director, said the registration process for vessels bound for LA/LB projects a slight uptick in the coming two weeks. Container ships on the way to LA/LB averaged 58.9/day in January, which fell to 47.2/day in May amid trade tensions between the US and China. The average has climbed to 51.8/day over the first 14 days of June, and 52.1/day over the past 17 days. “This is an indicator of a slight increase in ship arrivals over next 1-2 weeks,” Louttit said. Louttit said there are 17 container ships scheduled to arrive at the twin ports over the next three days, which is normal. Container ships at berth at the ports of LA/LB dipped from an average of 19.4/day in April to 15.6/day in May. The average was 12.3/day over the first six days of June but jumped to 15.1/day for all 14 days in June, with 21 at berth on Friday and 14 at berth on Saturday. Maritime information specialists at MESC said there are 49 container ships “blank sailing” that will skip Los Angeles or Long Beach through 1 August, which is two more than the previous week. Blank sailings are when an ocean carrier cancels or skips a scheduled port call or region in the middle of a fixed rotation, typically to control capacity. Peter Sand, chief analyst at ocean and freight rate analytics firm Xeneta, said capacity is returning to the transpacific trade – up 28% since mid-May – as carriers react to shippers rushing cargo during the 90-day window of lower tariffs. “This increased capacity and a slowing in the cargo rush should see a return of the downward pressure on spot rates we saw during Q1 prior to the ‘Liberation Day’ tariff announcement,” Sand said. Rates for shipping containers from east Asia and China to the US are at 10-month highs. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), which are shipped in pellets. Titanium dioxide (TiO2) is also shipped in containers. They also transport liquid chemicals in isotanks.

SAO PAULO (ICIS)–Colombia’s plastics industry is managing to navigate through a turbulent period for the country’s macroeconomics and growing at over 3%, but the cabinet’s fiscal issues and intensifying Chinese imports pose risks, according to the president of trade group Acoplasticos. Daniel Mitchell added plastics in Colombia can consider themselves lucky as growth over 3% exceeds that of the wider manufacturing sectors as well as the overall growth in the country. Mitchell said that, while imports into Colombia continue at pace, the country’s exports have showed particularly strong momentum in the plastic chain – according to Acoplasticos, plastic product exports rose 7% while plastic materials exports surged 15%, effectively compensating for weaker domestic market conditions. Acoplasticos represents the entire plastics value chain, though maintains primary focus on manufacturing rather than commercial distribution activities. FISCAL POLICY ADDS UNCERTAINTY Last week, the Colombian government activated an ‘escape clause’ to the so-called fiscal rule, a clause normally only used in emergencies or calamities, the last time being the pandemic. On this occasion, there is not an emergency per se, but the cabinet is decided to go through with its intention to increase spending ahead of the election. Left-leaning President Gustavo Petro’s electoral program was clear in its aim to expand the welfare state, but as Petro’s term nears its end, that higher spending has been financed with debt rather than regular, tax-led higher income. Activating the escape clause and practically dismantling the rules which had made Colombia a relatively stable economy in Latin America in the past few years will add pressure to investors who are wary of unstable macroeconomics. Chemicals sources said to ICIS last week the measure could increase borrowing costs, as both public and private borrowing became harder due to investors’ distrust of loose fiscal policies. Industry leaders are showing the same concerns. Last week, the main industrial trade group Andi – in which chemicals is represented as well – said nascent, growing investments in Colombia could now be put on hold due to the uncertainty, and Acoplasticos joins that. “We are quite concerned. There are three elements that have come together: the cabinet recently increased withholding tax rates, requiring companies to pay higher advance portions of next year’s income tax during the current year. This provides the government with additional, immediate cash flow – but it reduces available resources for the following year: it’s short-termism in a fiscal maneuver which could have profound medium-term consequences,” said Mitchell. “Additionally, the government has indeed activated the ‘escape clause’ for the fiscal rule, effectively allowing breach of established fiscal discipline mechanisms. This decision permits higher government borrowing and increased fiscal deficits, enabling expanded current spending without regard for future fiscal sustainability. “Finally, the third concerning element involves publication of the medium-term fiscal framework, outlining public finance perspectives over the coming years. To add to the previous woes, most analysts think this framework reflects a concerning ‘spend today and don’t think much about what will happen tomorrow or in future years’ approach, which greatly undermines confidence in fiscal responsibility,” said Mitchell. These fiscal policy decisions carry significant repercussions for Colombia’s financial standing and broader economic stability, Mitchell went on to say, and the deteriorating fiscal outlook is almost certain to increase the country risk premiums, which in turn can lead to higher interest rates for public debt and reducing fiscal space for future policy responses. There are widespread concerns among Colombia economic heads that if the government insists on a looser fiscal policy, credit rating agencies could move to downgrade the sovereign rating, making it more expensive for Colombia to go out to global markets to issue debt. “There is a risk that credit rating agencies will review Colombia’s rating and possibly remove our investment grade status and downgrade us in their categories. This scenario would further increase interest rates and limit government borrowing capacity while constraining private sector access to international financing,” said Mitchell. Fiscal discipline – or the appearance of it – is so important and is so absent in Colombia currently that there are concerns the deterioration in the public finances will almost inevitably and quickly depreciate the Colombian peso’s exchange rate, in turn making imports more expensive. This all will be an issue for Colombia’s central bank, who was meant to continue lowering interest rates as the peak of the inflation crisis has been left behind. But the new scenario of rising imports due to the lower peso, sooner or later filtering down to the consumer in the shops, could put a span in the works of monetary policy easing. “Obviously, by maintaining or not being able to reduce interest rates, this affects economic growth, affects investment prospects, buying machinery, buying appliances, buying automobiles, buying housing, which are sectors tied to the chemical sector, to the plastics sector,” said Mitchell. “Currency dynamics present mixed implications for plastics: a depreciated peso increases raw material costs for domestic producers reliant on imported inputs, though it benefits exporters by making their products more competitive in international markets. But, overall, I think currency weakness generally pressures the industrial sector downwards, while economic deceleration reduces domestic consumption.” CHINA As well as domestic issues for companies, chemicals and plastics imports from Asia, the Middle East, or the US, continue to present Colombia and the wider Latin America with a near-existential crisis. With lower production costs – via actual lower costs or via heavy subsidies to keep its citizens employed – China is now dumping its excess product in practically all industrial sectors, and chemicals and polymers have been at the center of it. Far from easing, China seems to be sending product at yet more competitive prices, and the competitive pressure continues escalating, gradually but persistently, across most plastic product segments. Mitchell said that while some categories like packaging containers face limited import competition due to transportation economics, virtually all other tradeable plastic products encounter Chinese competition at prices significantly below domestic production costs. Colombia’s approach to addressing unfair trade practices maintains a case-by-case methodology rather than implementing broad protective measures such as higher import tariffs. The Ministry of Commerce investigates specific complaints regarding antidumping violations and safeguard measures, with mixed results depending on individual case merits. Recent examples include a polyvinyl chloride (PVC) antidumping complaint filed two years ago that was rejected by the government, while a current antidumping case regarding plastic films remains under review. “These cases reflect ongoing industry efforts to address unfair competition, though without systematic government support for broad protective measures – it has ruled in favor in some cases, it has ruled against in others,” said Mitchell. OPEN ELECTON ALSO ADDS TO UNCERTAINTY As Colombia approaches a critical electoral period with congressional elections scheduled for March 2026 and presidential elections in May, the political uncertainty seems to grow rather than narrowing the option as the election gets closer. President Petro’s approval ratings hover around 30%, suggesting his party will face electoral vulnerability for the presidential election, as Colombia’s second-round presidential system requires majority support exceeding 50% in the first round, or a final round between the two most voted candidates in the first round. However, political dynamics remain highly uncertain with numerous potential candidates and no clear front runner emerging. To add to the uncertainty, Colombians are still reeling from the terrorist attack a week ago witnessed on national television against one of the presidential candidates, right-leaning Miguel Uribe, who remains in hospital in critical condition. Opinion polls would suggest Petro’s time in politics may be approaching its end, but Mitchell reminded a few months in politics can feel much longer, and more so in a very fluid electoral landscape in which there is no clear favorite yet, with several candidates polling at the low double-digits. The second and final round seems more open than ever. “When you look at the government’s popularity indices, the logic is that no [they will not revalidate their mandate]. Because his popularity is around 30%, which is not a majority. But obviously everything is very uncertain at this moment, and the truth is that there are many candidates,” he concluded. This interview took place over the phone on 13 June. Front page picture source: Acoplasticos Interview article by Jonathan Lopez

This article reflects the personal views of the author and is not necessarily an expression of ICIS’s position LONDON (ICIS)–In his latest article about Europe’s position in our world of escalating military tensions and warfare director of Eurointelligence Wolfgang Munchau cited US chess player Bobby Fischer as saying: “Tactics flow from a superior position.” Munchau is positing that Europe is increasingly using ‘tactics’ as opposed to ‘strategy’. His argument rings very true when it comes to Europe’s energy policy and its stance towards Russia – the aggressor in the brutal Ukraine war that has now lasted for three years. The European Commission has recently announced the 18th sanctions package against Russia aimed at hitting its president Vladimir Putin where it hurts – energy exports – one of his main sources of income. “Russia’s goal is not peace, it is to impose the rule of might. Therefore, we are ramping up pressure on Russia. Because strength is the only language that Russia will understand,” President of the European Commission Ursula von der Leyen and High Representative of the Union for Foreign Affairs and Security Policy/Vice-President of the European Commission (HR/VP) Kaja Kallas said in a joint statement on 10 June. To back up its strong words with actions the Commission is proposing a transaction ban for the sabotaged Nord Stream 1 and 2 pipelines that have been inactive since September 2022. “This means that no EU operator will be able to engage directly or indirectly in any transactions regarding the Nord Stream pipelines. There is no return to the past,” the Commission’s high officials said. The proposal to sanction Nord Stream 1&2 has puzzled many energy experts. “So, why is now Europe rushing to sanction these pipelines, which have not transported gas in almost three years?” asked postdoctoral fellow and energy observer Francesco Sassi. The measure is linked to EU’s Roadmap to phase out all imports of Russian energy by 2027, which it believes will help to end the war in Ukraine. “Every sanction weakens Russia’s ability to fight. So, Russia wants us to believe that they can continue this war forever. This is simply not true,” Kallas said. The Commission may achieve its goal of inflicting financial pain on Putin’s war economy. But its rejection of Russian energy should be viewed in the wider context of Europe’s obsession with phasing out fossil fuels as such and its headlong pursuit of Net Zero goals and policies. Net Zero recently came under fire from the most unlikely critic – former British Prime Minister Tony Blair. “Despite the past 15 years seeing an explosion in renewable energy and despite electric vehicles becoming the fastest-growing sector of the vehicle market, with China leading the way in both, production of fossil fuels and demand for them has risen, not fallen, and is set to rise further up to 2030,” Blair said. “Leaving aside oil and gas, in 2024 China initiated construction on 95 gigawatts of new coal-fired energy, which is almost as much as the total current energy output from coal of all of Europe put together. Meanwhile, India recently announced they had reached the milestone of 1 billion tonnes of coal production in a single year,” he added. Blair concluded that any strategy based on “either “phasing out” fossil fuels in the short term or limiting consumption is a strategy doomed to fail”. In the past few years, it has become abundantly clear that European industries have been severely hurt by high energy prices to the point when they are closing down production and relocating to more industry-friendly parts of the world. When it comes to natural gas, Ukraine itself is struggling to secure adequate supplies for this winter, which is putting further upwards pressure on European hub prices and increasing Europe’s appetite for LNG, drawing cargoes away from other continents. So whose interests is the European Commission defending? And whom is it hurting the most? “We Westerners are, by our inclination, more tactical than strategic. We like to close in. That is not necessarily a bad thing, for as long as you have an underlying strategy in place,” Munchau concluded his analysis. Coming back to Bobby Fisher, what position of ‘superiority’ can Europe boast these days? If it is not an economic one, the rest is an empty moral posturing.