OMNI Features｜EU Commission Proposes 2040 Climate Target With Flexibilities．Trump Terminates Support for Solar and Wind Energy Under "One Big Beautiful Bill Act" to Satisfy Oil Industry Demands．Vietnam's Ceiling Price Set for Offshore Wind Power In 2025

｜EU Commission Proposes 2040 Climate Target With Flexibilities

The European Commission on Wednesday proposed that the EU reduce its net greenhouse gas emissions 90% by 2040, compared with 1990 levels, but included flexibilities to soften the emissions cuts for domestic industries.

The proposal said the European Union can buy carbon credits from developing countries and count these credits to meet 3 percentage points of the 2040 goal. This is a new approach - the EU's existing climate targets are based solely on domestic emissions cuts. The proposal must be negotiated and approved by the European Parliament and a reinforced majority of EU countries.

｜Trump Terminates Support for Solar and Wind Energy Under "One Big Beautiful Bill Act" to Satisfy Oil Industry Demands

President Donald Trump's One Big Beautiful Bill Act ends long-standing federal support for solar and wind power, while creating a friendly environment for oil, gas and coal production. Trump has made his priorities on energy production clear. The U.S. will rely on oil, gas, coal and nuclear to meet its growing energy needs, the president said last weekend, bashing wind and solar power. The president's embrace of fossil fuels and hostility to renewable energy is reflected in his signature domestic policy law. It delivers most of the oil and gas sector's top priorities, according to the industry's lobby group, while ending tax credits that have played a crucial role in the growth of solar and wind power.

The law phases out clean electricity investment and production tax credits for wind and solar that have played a crucial role in the growth of the renewable energy industry. The investment credit has been in place since 2005 and the production credit since 1992. The Inflation Reduction Act extended the life of both until at least 2032. Solar and wind farms that enter service after 2027 would no longer be eligible for the credits. There is an exception, however, for projects that start construction within 12 months of the bill becoming law.

｜Vietnam's Ceiling Price Set for Offshore Wind Power In 2025

The Ministry of Industry and Trade has approved the 2025 electricity price framework for offshore wind power, setting regional ceiling rates. The highest rate is in the northern region at VNĐ3,975.1 (US$0.15) per kWh, not including value-added tax. The ceiling rate for the south-central region is VNĐ3,078.9 per kWh, while the southern region's rate is VNĐ3,868.5 per kWh.

EVN said the proposed prices were based on investment cost estimates, with average capital expenditure for offshore wind power plants across regions calculated at VNĐ93.6 million per kW, or VNĐ93 billion per MW, using an exchange rate of VNĐ25,450 per US dollar. However, capacity factors vary by region, with the north estimated at 38.4 per cent, the south-central region at 49.6 per cent and the south at 39.5 per cent.

EVN also noted that no official feasibility studies have been conducted for offshore wind projects in Vietnam. Despite limited experience in offshore wind, Vietnam aims to achieve 6,000MW of capacity within 5 years.

Reference: Reuters｜CNBC｜Vietnam News