Teething problems in the green transition

Today's top stories

• Strong retail sales and robust results from Walmart further dispelled the gloom in the U.S. economy, sparked another rally on Wall Street and set global stocks for their best week in nine months.

• Crucial talks on a ceasefire and hostage release in the Gaza Strip dragged on for a second day in Doha as international mediators tried to broker a deal that also aims to ease growing hostilities in the region and prevent a full-scale war between Israel and Iran.

• The election of Paetongtarn Shinawatra as Prime Minister of Thailand marked the return to power of the family that has dominated Thai politics for the past two decades.

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Joe Biden's inflation-fighting bill was the West's most significant measure to accelerate the transition to clean energy. But today, on its second anniversary, delays to key projects and incoming President Donald Trump's threat to kill it have heightened doubts about how quickly – and at what cost – the world can transition to a fossil-fuel-free future.

As our Big Read points out, Biden plans to use the IRA, along with the Chips and Science Act, to rebalance the U.S. economy. But as columnist Gillian Tett notes, the costs of such initiatives tend to be underestimated.

The fact that much of the $400 billion in renewable energy tax credits, grants and loans has gone to former industrial centers, many of them in Republican regions, gives Republican states some ammunition against Trump's wrecking ball. But whether this is enough to truly decarbonize America is questionable, she writes. To name just one reason: Even under Biden's presidency, oil and gas production has continued to rise, contributing, among other things, to a huge increase in climate-damaging methane emissions.

And although the burning of fossil fuels is considered the biggest cause of greenhouse gas emissions, world leaders are still arguing about how to phase them out. A huge row has broken out at the United Nations because fossil fuels are not explicitly mentioned in the draft climate pact that is the focus of the Summit of the Future, which will take place in New York next month. More than 80 Nobel Prize winners and former heads of state and government protested against this.

Industry is also lobbying hard. For example, major technology companies, which are likely to be among the most energy-intensive consumers in the future as they compete to develop power-hungry artificial intelligence, are trying to change emissions reporting.

Other sectors are wary of the rising costs of the green transition or, in some cases, are even relying more on fossil fuels.

Danish offshore wind developer Ørsted yesterday scrapped plans for a European plant to produce green fuels because the fledgling market was growing more slowly than expected. Glencore scrapped a radical plan to spin off its coal business after shareholders objected – one of the clearest examples of the shift away from fossil fuels. And energy giants such as Shell and BP have abandoned efforts to woo investors on environmental, social and governance issues, pledging to focus instead on their core oil and gas businesses.

Other projects are also encountering difficulties. Sweden, for example, has ambitious plans for green energy from its extensive hydroelectric network. Thousands of people have flocked to the country's far north in a new gold rush, but the projects are struggling to scale up, as another Big Read details.

Meanwhile, evidence of the impacts of climate change on our planet is mounting – from record temperatures around the world to wildfires in Europe, the fastest-warming continent.

Interesting facts: Economy in Great Britain and Europe

Strong retail sales in July capped a good week for the British economyafter it was announced that gross domestic product grew by 0.6 percent in the second quarter, reinforcing the view that the Bank of England will leave interest rates unchanged at its September meeting.

Margrethe Vestager will not return for a third term as the EU's most powerful antitrust official as the Danish government prepares to nominate another candidate for the EU commissioner's post. Vestager was known for imposing billions in fines on U.S. big tech companies.

Interesting facts: World economy

Donald Trump promised an “economic boom” if he won the US presidential election – or a “1922-like depression” if he lost. He vowed to lower the prices of cars, houses, insurance and prescription drugs (though the current president claimed credit for negotiating with pharmaceutical companies to reduce the prices of 10 major drugs). But a think tank report today said the prospect of a Trump presidency “should send shivers down the spine of business leaders.”

ChinaThe country's industrial production recorded its lowest growth in four months in July, reinforcing signs of a weak start to the third quarter.

Sustainable economic reforms attract investments back into Ethiopia And Zambiasays academic and author Paul Collier. Wamkele Mene of the African Continental Free Trade Area believes that creating a single integrated market across Africa would create jobs and stem the flow of migrants from the continent.

A large article describes how the Venezuelan President Nicolas Maduro is clinging to power despite widespread protests over the validity of his recent election victory. Neighbours Brazil and Colombia have called for new elections.

Things to know: Business

SLBthe world's largest oilfield services company, is expanding in Russia after its main Western competitors have retreated since Moscow's large-scale invasion of Ukraine.

The FT revealed that SoftBank held talks with Intel about producing an artificial intelligence chip to compete with Nvidia, but the plan failed because the US chipmaker had difficulty meeting the Japanese company's requirements.

Global fashion brands such as H&M and Zara are shifting their orders from Bangladesh because of the turmoil surrounding the overthrow of authoritarian Prime Minister Sheikh Hasina, in which an estimated 500 people died.

Dubai's international port operator DP World was the latest logistics company to disclose the impact of disruption caused by rebel attacks in the Red Sea. Net profit more than halved in the first half of the year.

Scientific overview

Vaccine shortages complicate the response to a mpox (formerly known as monkeypox) emergency in Central and East Africa is a reminder of the problems the region is facing during the coronavirus pandemic.

There is a dispute over stricter EU rules for medical experimentsgive less weight to so-called single-arm trials, in which one group of patients does not receive the treatment. Pharmaceutical companies say the new guidelines could jeopardize new treatments for rare diseases.

Fund manager Helene Servillon says the rejection of US regulation MDMA-assisted therapy is a missed opportunity. MDMA, commonly known as ecstasy, works by suppressing the fear response and allowing patients suffering from PTSD to observe and reprocess painful memories.

The latest warning about the global spread of superbugs comes from new research showing City birds such as ducks and crows are carriers of drug-resistant bacteria.

The view of water on Mars requires a spirit of discovery rather than exploitation, writes commentator Anjana Ahuja. Humanity should continue the search for life beyond our own planet, but protect it from the worst piratical instincts of our own species, she says.

Groundbreaking geological research has discovered a surprise in the heart of Stonehenge: The ‘altar stone’ of the Neolithic monument was transported all the way from north-east Scotland.

And speaking of prehistoric mysteries: Could a brave citizen scientist in London have cracked the code too early? human writing?

Some good news

Here's an instructive story about how indigenous communities in Guyana helped save a rare bird, the Scarlet Siskin, and reconnect with nature in the process.