EU Strikes Deal to Curb Energy Use by 2030

Houses of a residential area are pictured in Frankfurt, Germany, Friday, March 10, 2023. (AP)
Houses of a residential area are pictured in Frankfurt, Germany, Friday, March 10, 2023. (AP)
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EU Strikes Deal to Curb Energy Use by 2030

Houses of a residential area are pictured in Frankfurt, Germany, Friday, March 10, 2023. (AP)
Houses of a residential area are pictured in Frankfurt, Germany, Friday, March 10, 2023. (AP)

The European Union struck a deal on Friday to cut final energy consumption across the bloc by 11.7% by 2030, a goal lawmakers said would help fight climate change and curb Europe's use of Russian fossil fuels.

The deal was agreed after all-night talks between negotiators from EU countries and the European Parliament.

Hitting the targets will require countries to renovate millions of draughty buildings to waste less energy. Constructing and using buildings produces a third of EU greenhouse gas emissions, and with most European buildings heated by fossil fuels, the goal is crucial to the EU's efforts to combat climate change.

"This will mean real change for the benefit of the climate and disadvantage of Putin," said Niels Fuglsang, Parliament's lead negotiator.

Negotiators agreed that energy consumed by end-users in the bloc such as households and factories in 2030 should be 11.7% lower than expected use by that date.

The EU had initially proposed in 2021 that the target be a 9% saving, but hiked that to 13% last May in a bid to quit Russian fuels faster after Russia, previously Europe's top gas supplier, invaded Ukraine.

The 11.7% goal was a compromise between the EU Parliament, which had wanted a far higher goal of 14%, and some EU countries who wanted to stick to the original 9% aim.

The target will be legally binding. Countries will set their own non-binding national goals - but if they do not add up to the 11.7% goal, the European Commission will correct them.

From 2024 to 2030, countries will have to save an average of 1.49% of final energy consumption per year.

Countries will have to speed up their renovations of public buildings, renovating at least 3% of the total floor area of publicly-owned buildings each year.

The deal will now go to the European Parliament and EU countries for a final vote - which is usually a formality that approves the law with no changes.



Gold Prices Hold Steady as Investors Await US Fed Policy Cues

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
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Gold Prices Hold Steady as Investors Await US Fed Policy Cues

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)

Gold prices remained steady on Wednesday, as investors awaited the US Federal Reserve's decision on interest rates due later in the day, while also focusing on US President Donald Trump's trade policies following his tariff threats.

Spot gold eased 0.2% to $2,758.49 per ounce by 09:55 a.m. ET (1455 GMT), while US gold futures rose 0.3% to $2,775.60, widening the premium over spot gold rates.

The Fed is scheduled to release its latest policy decision and statement at 2 p.m. EST (1900 GMT), with Fed Chair Jerome Powell due to hold a press conference half an hour later to elaborate on the meeting.

The US central bank is widely expected to hold interest rates steady as it awaits further inflation and jobs data and more clarity on the economic impact of Trump's policies before deciding whether to cut borrowing costs again.

"However, the Fed's commentary in regards to the potential for an interest rate cut in the March meeting is going to be in focus," said David Meger, director of metals trading at High Ridge Futures.

Gold prices neared all-time highs last week after Trump called for lower interest rates. Bullion tends to thrive in a low-interest-rate environment as it yields no interest.

Prices, however, retreated sharply on Monday as a sell-off in technology stocks, driven by Chinese AI model DeepSeek, sparked a rush to liquidate bullion to counter losses, according to Reuters.

The sell-off in the stock market seen on Monday may not be over and the unpredictability of Trump's policies is contributing to an increased demand for gold as a safe-haven, said Jim Wyckoff, a senior market analyst at Kitco Metals.

Trump still plans to make good on his promise to issue tariffs on Canada and Mexico, and his policies are widely seen as inflationary.

Elsewhere, spot silver gained 1.7% to $30.92 per ounce, platinum also added 0.5% to $946.45. Palladium was up 0.8% to $962.50.