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 Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices rose for a second straight session on Tuesday, but traded below the recent all-time highs, as uncertainty around US President Donald Trump's tariff plans continued to fuel economic growth concerns and safe haven flows into bullion.

Spot gold gained 0.6% at $2,913.79 an ounce as of 0714 GMT. It hit a record high of $2,942.70 last week.

US gold futures added 0.9% to $2,925.50.

"Trump's disruptive modus operandi, aggressive rhetoric and tariffs - whether actual or threatened - could unravel global trade and intricate supply chains," said Nikos Tzabouras, senior financial writer at trading platform Tradu, Reuters reported.

"With uncertainty surrounding the global economy and the broader geopolitical landscape in the Trump 2.0 era, gold is set to remain a natural beneficiary of risk-off flows and central bank buying."

Since taking office last month, Trump has swiftly redrawn the global trade battlefield with a series of tariffs, while plans are already in motion for sweeping reciprocal tariffs, aimed squarely at any nation that taxes US products.

"Gold continues to benefit from the uncertainty surrounding the US. government's tariff policy. Central bank buying should also continue to provide support, even if there is no new data on this," Commerzbank analysts said in a note.

The market's focus has now shifted to the US Federal Reserve's January meeting minutes due on Wednesday for clues into the central bank's interest rate trajectory.

"Price gains are also supported by growing expectations that the Fed will cut rates in 2025 - a sentiment that gained further traction among traders after last week's disappointing US retail sales figures," Ricardo Evangelista, senior analyst at brokerage firm ActivTrades, said.

Bullion benefits from geopolitical and economic uncertainties, as well as rising price pressures, but higher interest rates diminish the asset's allure.

Spot silver fell 0.9% to $32.50 an ounce. Platinum jumped 0.9% to $985.20 and palladium climbed 1.6% to $978.00.