FEBRUARY 26, 2025

Greetings from DC! I’m here to speak at an event at the Australian Embassy and attend a few other things.

In Cipher this week:

• Anca Gurzu looks into Europe’s industrial decline, and efforts to roll it back using cleantech, in a Data Dive.
• Contributor Anuradha Varanasi explores how to protect cleantech from extreme weather.

Plus, keep an eye out for a special article on Cipher’s website on Friday that will provide a high-level look at where things stand on crucial climate and energy topics under the new Trump administration.

 
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Europe races to boost industry as Trump, climate and geopolitics loom

Source: Eurostat • The industrial production index measures the industrial output of Europe's economy, including manufacturing of consumer goods, capital goods (anything used to produce consumer goods) and energy production.

BY: ANCA GURZU

BRUSSELS — European leaders laid out on Wednesday a much-awaited plan that seeks to resuscitate its ailing industrial base by boosting domestic cleantech manufacturing and alleviating high energy prices.

In the works since last year, the plan is taking on heightened scrutiny as the continent reels from actions by United States President Donald Trump, ranging from the Russian war in Ukraine to tariffs.
 
The European Commission, the EU’s executive arm, announced the roadmap, called the “Clean Industrial Deal,” as the region’s industrial production has been trending down over the last couple of years (as the chart above shows), sparking urgency to reverse the trend. Notably, the plan aims to bring climate action and competitiveness under one growth strategy.

Production decreased by 1.7% between December 2023 and December 2024 with Austria, Italy, Portugal and Germany seeing the biggest declines in that period, according to the EU’s statistical agency Eurostat. Any decrease in industrial production is often a warning sign for an economy. It can highlight several issues, such as slowing economic growth, weak consumer and business demand, supply chain issues and higher unemployment risks.

"Our vision is for Europe to lead as a clean manufacturing power," Teresa Ribera, the Commission's executive vice-president in charge of the clean transition, said during a press conference about the plan on Wednesday. "We think the Clean Industrial Deal is a long-lasting proposal to keep Europe as an attractive hub for traditional business industries, accelerating new technologies and circular business models that can compete worldwide."

The plan, which will feature specific legislative proposals expected to be introduced throughout this year and next, aims to drive reindustrialization and accelerate decarbonization by making a better business case for investing in scaling up cleantech industries and greening hard-to-abate sectors.

To provide industry with immediate access to capital, the Commission committed to mobilize $105 billion (€100 billion) in the short-term for "EU-made clean manufacturing," which will pull funds from several existing programs. 

Europe’s industrial hardships are a result of several factors — including rising geopolitical tensions, heavy regulatory burdens and, following Russia’s invasion of Ukraine, high energy prices — all of which has led to reduced investments and lower manufacturing productivity.

As Europe’s traditional industrial base is eroding, new clean industrial sectors, such as batteries and green steel, are struggling to get off the ground, according to a recent analysis by lobby group Cleantech for Europe and Breakthrough Energy, which risks jeopardizing the bloc’s wider decarbonization goals.
 
These worrying trends come amid growing international competition, especially from cheaper Chinese products, which could leave Europe behind in the cleantech race.

The U.S. started making inroads in cleantech manufacturing under Biden administration policies in recent years, contributing to Europe’s scramble to build out its own cleantech sector, but the future of those policies in the U.S. are now uncertain under the new Trump administration.

Editor’s note: Cleantech for Europe is supported by Breakthrough Energy, which also supports Cipher.

Read this article and share on Cipher’s website.

Lunchtime Reads and Hot Takes

Farmers Sue Over Deletion of Climate Data From Government Websites — The New York Times
Bill’s take: Agriculture is a force in DC and while the suing farmers aren’t likely to be heeded by the Trump administration, they could well become part of a larger frustration caused by disorganized cost cuts.

Can Congress keep up momentum on nuclear? — E&E News (subscription)
Cat’s take: On the one hand, Trump and his energy leadership have indicated they are pro nuclear, but at the same time, the administration is looking to reduce federal spending, which nuclear needs now. A pickle.

Exclusive: BP to ditch renewables goals and return focus to fossil fuels — Reuters
Anca’s take: The pace of the energy transition is really taking a hit and headlines like these make it quite clear.

Could the Sun Set on the Texas Renewable Energy Boom? — Texas Monthly
Bill’s take: The push to quash renewables in a state that’s been a national leader in wind and solar — despite also being a fossil fuel haven — will be an important early test of Trump administration impact.

ADM pledges to stick to climate goals as Donald Trump divides corporate world — Financial Times (subscription) 
Cat’s take: ADM leader key quote: “Frankly, if I look forward to 10 or 20 years and you look at what’s going on with climate change, I don’t think this is a thing that we can just shrug off and forget about.”

Scoop: U.S. to pull delegation from UN climate science meeting — Axios
Amena’s take: This news is unsurprising since President Trump has withdrawn the U.S. from the Paris climate treaty and all climate-related obligations. The world will miss out on U.S. scientific feedback, though.

Senior Republicans seeking to tear up IRA enjoy $130bn investment spree — Financial Times (subscription)
Cat’s take: These lawmakers are in the midst of a tug-of-war between appeasing Trump and protecting the regions they represent. The pace and competitiveness of clean manufacturing in the U.S. hangs in the balance.

Why Trump’s Clean Energy Rollbacks Could Derail a Factory Boom — The New York Times
Bill’s take: One of the many contradictions clashing inside the Trump team being sorted out on the fly at this point.

Trump orders sweeping review of federal regulations — The Washington Post
Amena’s take: The White House's Department of Government Efficiency will have final say in rules that are finalized. Only the rules complying with the White House's "best reading" of the laws will be enforced.

More of what we're reading:

• Ukraine agrees minerals deal with US — Financial Times

• Court pauses power plant climate rule case at EPA’s request — POLITICO Pro (subscription)

We denote ‘(subscription)’ when publications don’t provide any complimentary articles, but many others may ultimately allow you to read only a limited number each month before subscribing. We encourage those who can afford it to support the journalism you love most!

How to protect clean energy projects against extreme weather

India’s storm-ravaged floating solar projects offer lessons

Floating solar panels on the Omkareshwar dam reservoir in central India. Photo by Rewa Ultra Mega Solar Power Ltd.

BY: ANURADHA VARANASI

Varanasi is a freelance science journalist based in Mumbai, India. You can follow her on LinkedIn.

INDHAWADI, India — On a warm September morning, hundreds of rows of solar panels gently moved in sync with the water currents of the Omkareshwar dam reservoir. 
 
As a group of engineers in a motorboat approached the floating solar panels that they had painstakingly installed into 14 rectangular islands ringed with white plastic floats, they beamed with pride at their accomplishment.
 
A year earlier, the scene was not this tranquil.
 
Right after this engineering team and two others started assembling three floating solar plants on the massive artificial lake in September 2023, a storm hit.
 
Strong gusts of wind unraveled the mooring ropes that held the island together and sent solar panels crashing into each other. 
 
An unseasonal storm struck again in April 2024. At the largest of the three plants, the rebuilt solar panel island remained unscathed, thanks to new anchoring systems drilled into the lake bed. But the engineers at the other two floating plants had not yet constructed permanent anchors. For the second time, an unforeseen storm left behind a graveyard of broken solar panels. 
 
“Our project collapsed like a biscuit on hot tea,” said Sri Sai Karthik Borra, a project site manager at Tata Power Solar Systems Limited, the company constructing the third floating solar power plant. 

The trials of these floating solar projects in India point to a broader trend tinged with irony: extreme weather exacerbated by climate change is increasingly impacting the clean energy projects intended to help combat climate change worldwide.

Fortunately, there are ways to make clean energy projects — especially floating solar power plants — more resilient to climate change-driven extreme weather events.

Through a series of trial and error, the engineers in India figured out how to develop sturdier permanent mooring and anchoring systems that could withstand bursts of stronger winds than temporary ones. 
 
Some of the engineers drew inspiration from Japan. Following a 2019 typhoon that destroyed a floating solar plant there, the project’s engineers discovered the anchors failed due to the size and shape of the floating solar islands. The Japan-based team split the plant into smaller islands and, since the work was completed in 2021, the plant has withstood repeated typhoons.
 
“Installing a floating solar plant requires perfection,” said Borra. “One errant panel is enough to affect the entire plant.”
 
Installation issues like loose bolts and clamp failures can result in the failure of solar panels during hurricanes or tropical cyclones — whether on land or a body of water. A crucial step in making climate-resilient solar infrastructure involves focusing on the designs of mounting structures that support panels. 
 
“This includes using high-quality raw materials with adequate thickness, which can protect solar panels even during harsh weather conditions,” Borra said. 
 
After experiencing severe hail storms in Texas, engineers and designers found that thicker and fully-tempered glass could make solar panels more hail-resistant, especially when the panels are protected with high-quality frames and support bars. 
 
“In India and elsewhere, governments and the private sector need to be willing to invest more money on high-quality raw materials to strengthen solar infrastructure during this climate crisis,” Borra said. “The issue is that many players in this field are cutting corners.”

Read this article and share on Cipher’s website.

AND FINALLY...
Battery swap

Cipher reader and portfolio manager at AllianceBernstein Luke Pryor recently shared this photo of a battery swap service for electric scooters in Taiwan. The ability to swap out batteries speeds up the "refueling" process for drivers, Luke wrote in an email. Check out this Cipher story about battery swapping by Bill Spindle.

Each week, we feature a photo that is somehow related to energy, the thing we all need but don’t notice until it’s expensive or gone. Email your ideas and photos to news@ciphernews.com.

Editor’s note: In addition to supporting Cipher, Breakthrough Energy also supports and partners with a range of entities working to tackle climate change, including nonprofits, corporations, startups and research firms. For more information on Cipher’s editorial policy, click here.