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US and European engineering companies have warned that a German bill to replace gas boilers with heat pumps contains provisions that violate the principles of the EU single market.
Manufacturers are concerned about a clause in the draft law allowing the government to prohibit the use of a refrigerating gas — hydrofluoroolefins — in heat pump systems.
This provision in what is being billed as one of Germany’s most ambitious pieces of climate legislation is “counterproductive”, said Julien Soulet, a senior executive at Honeywell Advanced Materials, and “violates the principles of the EU internal market”.
“The unintended consequences of removing HFOs from the market in Germany would be far-reaching in terms of adverse impacts on energy efficiency, energy security and financial cost to citizens.”
The boiler ban has become one of the most hotly contested German laws of recent years, badly denting the popularity of Olaf Scholz’s coalition government. The planned Buildings Energy Act, which is expected to be passed by the Bundestag in the autumn, stipulates that from next year all heating systems installed in new buildings in Germany must be at least 65 per cent powered by renewables.
Here’s what else I’m keeping tabs on today:
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Economic data: The EU, Germany and Italy have June unemployment figures.
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Results: BP, DHL, Diageo, Fresnillo, Greggs, Man Group, Robert Walters, Travis Perkins and Weir report. See our Week Ahead newsletter for the full list.
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UK alcohol duty: From today, all alcoholic drinks will be taxed based on their alcohol by volume. The draught beer tax relief will also increase, meaning the duty charged on a typical pint in pubs will in effect be frozen and lower than that of beer bought in the supermarket.
Five more top stories
1. UK shop prices fell month on month in July for the first time in two years, according to industry data published today, adding to evidence that high inflation might finally be starting to ease. The British Retail Consortium said shop prices in July were 0.1 per cent lower than in June, partly due to big discounts by retailers. Read the full story.
2. Exclusive: Meta plans to launch a range of artificial intelligence chatbots that exhibit different personalities and can have humanlike discussions with users as soon as next month. Their purpose is to boost engagement by providing a new search function and offering recommendations. Here are the different “personas” that the chatbots will adopt.
3. Exclusive: China’s metals and mining investments overseas are on track to hit a record after topping $10bn in the first half of the year, more than the whole of last year and on track to exceed 2018’s record of $17bn. The investments highlight intensifying efforts by the country to capture resources across the cleantech supply chain. Here are more details on China’s “strategic” investments.
4. The US effort to increase munitions supplies for Ukraine is facing hurdles. Plans to deliver more 155mm calibre shells used in howitzers on the front line include supplies from international allies in the short term, but US Army efforts to increase monthly output of the crucial munitions to 90,000 will take until 2025. Read more about why production is taking so long.
5. Nigel Farage has revealed that Coutts has offered to allow him to keep his accounts at the bank, in what would amount to a full climbdown by the embattled institution. The former Brexit party leader said he was in talks with NatWest’s private bank on the issue but wanted compensation and a face-to-face meeting with its leadership.
The Big Read
From semiconductors and electric-car batteries to biotech and telecoms, South Korean companies are crucial players in sectors critical to Washington’s and Beijing’s national security and industrial strategy. But experts, officials and company executives all note that the country has already embarked on an unmistakable — albeit untrumpeted — pivot away from the Chinese economy.
We’re also reading . . .
Chart of the day
In a bid to woo middle England, Rishi Sunak is downplaying his green policies to portray himself as being “on the side” of motorists and taking a “pragmatic and proportionate” approach to climate change. Will the prime minister’s shift work with Conservative voters?
Take a break from the news
. . . and enjoy this mouthwatering review of the best lobster rolls in the Hamptons. The expensive beach enclave on New York’s Long Island is still home to down-to-earth shacks and diners where you can tuck into this simple yet succulent snack.
Additional contributions by Benjamin Wilhelm and Gordon Smith
