Energy Transition, Renewables, Emissions, Carbon
July 29, 2026
ET Highlights: California EV market rises amid high gasoline prices; New Zealand climate targets at risk; data center boom drives CCS demand
Energy Transition Highlights: Our editors and analysts bring together the biggest stories in the industry this week, from renewables to storage to carbon prices.
Top story
California ZEV sales on the rise
California zero-emission vehicle sales increased 3.3 percentage points in second-quarter as gasoline prices soared across the country, according to the California Energy Commission.
Most of the new ZEV sales in the state are EVs, representing 16.6% of new car sales, well above the national level of 5.8%, the CEC said in a July 20 statement. The Q2 sales share of new EV purchases recorded without federal tax credits is the highest on record and is only 2.5 percentage points below the same quarter last year, when the $7,500 federal incentive was still available, according to the CEC.
Stephanie Brinley, associate director for AutoIntelligence at Mobility Global, said it was no surprise that California Q2 sales were the highest share of new EV purchases recorded without federal tax credits.
“While we didn’t predict which specific month it might happen and there could be further variability, EVs are expected to find a natural non-incentivized sales rate and that rate is expected to be higher than what we’ve seen since October 2025,” Brinley said. “The EV share for 2026 in the US overall will be lower than 2025.”
There is an underlying interest in EVs, infrastructure continues to improve, and the customer experience and education continue to improve, she added.
“When the tax credits were first at risk and then ended in the second and third quarters of 2025, there were buyers who bought ahead of the end; they might have waited a few months or a year to buy an EV if the credits had not been canceled,” Brinley said. “The pull-ahead effect contributed to lower EV sales in the fourth quarter of 2025 and first half of 2026, along with the lack of incentives.”
International Energy Agency data shows US EV sales were at 1.5 million in 2025, and are projected at 1.2 million in 2035 based on current policies and 3.1 million in 2035 based on stated policies.
Benchmark of the Week
$21,900/mt
Platts, part of S&P Global Energy, assessed battery-grade Lithium Carbonate DDP US at $21,900/metric ton on July 27, up 62% since the start of the year.
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INTERVIEW: Data center boom drives European CCS power uptake: Carbon Clean
The surge in data center construction across Europe is driving demand for carbon capture technology as operators seek clean behind-the-meter power generation to bypass lengthy grid connection queues and meet decarbonization targets, Carbon Clean CEO Aniruddha Sharma told Platts, part of S&P Global Energy. Data center developers are increasingly turning to on-site gas-fired generation paired with carbon capture systems to secure power supplies years faster than grid connections would allow, while meeting stringent decarbonization requirements in European jurisdictions, the CEO of the carbon capture technology company said in an interview July 16.
INTERVIEW: Hygenco eyes more renewable hydrogen projects, export push after equity raise
Hygenco Green Energies plans to build more renewable hydrogen plants and accelerate development of its export-oriented renewable ammonia project in India, following a recent equity raise, Harish Jayaram, vice president of business development at Hygenco told Platts, part of S&P Global Energy. The renewable energy developer has been an early mover with two operational renewable hydrogen plants for domestic industrial use and a 1.1 million mt/year renewable ammonia project in Gopalpur, Odisha, where phase one will be commissioned in 2030. With a recent equity investment, the developer will look at growing both domestic distributed renewable hydrogen plants across India and expediting the development of the Gopalpur Green Ammonia plant, Jayaram said.
China focused on voluntary SAF markets over demand mandates: CAAC research body official
China has prioritized building sustainable aviation fuel ecosystems and fostering voluntary demand over issuing demand-side policies such as mandates, said Eason Chen, chief operating officer of the SAF Center at the Civil Aviation Administration of China. At an industry webinar, Chen said China is developing SAF certification, traceability, voluntary markets and book-and-claim mechanisms rather than immediately relying on blending mandates similar to the EU's RefuelEU Aviation regulation. China's approach is different from Europe, Chen said. "If we really want to meet a target, we need to ensure we can get it done ... voluntary markets are an important way to help airlines gain greater access to SAF."
New Zealand climate targets at risk as decarbonization pace lags: report
New Zealand must more than double its current rate of emissions reductions to meet climate targets as the window for effective action narrows to just one to two years, according to a report released July 22 by the country's Climate Change Commission. The second emissions budget covering 2026-2030 faces significant risk, while current plans are insufficient to meet the third budget for 2031-2035, the commission said in its annual monitoring report. Government projections show biogenic methane reductions of 7.9% by 2030, falling short of the 10% target, the report showed.
China targets 3.5 billion kW renewable capacity by 2030
China aims to install around 3.5 billion kilowatts of renewable power generation capacity by 2030, with wind and solar accounting for more than 2.8 billion kW, according to the country's 15th Five-Year Plan for renewable energy development released by the National Energy Administration. The targets imply an increase of roughly 50% from the country's 2025 renewable power capacity level of 2.34 billion kW, underscoring Beijing's push to accelerate its energy transition and meet carbon neutrality goals by 2060. The plan sets a total renewable energy consumption target of around 1.8 billion metric tons of standard coal equivalent by 2030, with annual power generation reaching approximately 6 trillion kWh, the NEA said.
Europe's upcoming Eur100 bil Industrial Decarbonization Bank faces delivery test
The EU’s proposed Industrial Decarbonization Bank, set to launch in 2028, aims to accelerate emissions reductions in industrial facilities covered by the ETS, the bloc's carbon market, mobilizing Eur100 billion in funding for industrial decarbonization. But observers worry the initiative could go the way of similar incentive programs such as the EU Innovation Fund, which has seen just 16 of 208 projects with grant agreements reach operation as of June 2025, according to the Clean Air Task Force think tank.
EC calls for interest in next infrastructure-focused Hydrogen Mechanism round
The European Commission made a call for interest on July 22 in a new Hydrogen Mechanism round planned for later this year, focused on infrastructure development. "The upcoming infrastructure round will help transmission system operators, hydrogen network operators, and other relevant organizations assess market interest in planned hydrogen infrastructure projects, such as pipelines and storage," it said. The round comes after the first round of its Hydrogen Mechanism, which concluded at the end of April, during which a large number of renewable and low-carbon hydrogen suppliers attracted interest from potential buyers.