ET Highlights: US battery storage capacity rises 46%, China renewable hydrogen capacity doubles, Brussels defends CBAM

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Brussels defends CBAM after US ambassador's protectionism claim

The European Commission has rejected US Ambassador to the EU Andrew Puzder's labeling of its Carbon Border Adjustment Mechanism as protectionism, insisting the measure is a climate tool designed to prevent carbon leakage rather than a disguised tariff. A commission spokesperson said Aug. 13 that CBAM differs fundamentally from traditional tariffs because it applies equally to all countries based on verified embedded emissions and imposes low or zero obligations on low-carbon goods. The response followed an opinion piece by Puzder in which he argued that CBAM mirrored US trade barriers that Brussels had criticized. 

India's energy security tied to Middle East geopolitics despite diversification: CII-EY study

India will remain heavily reliant on liquid fuels for decades to come, driven by a rapidly expanding industrial base, robust economic growth and rising mobility demands, and its long-term energy security will continue to be shaped by geopolitical developments in the Middle East, despite efforts to diversify supplies, according to a joint study by the Confederation of Indian Industry and EY India. The August report, titled "India's energy security in a volatile world: Independence, efficiency and resilience" said while India is projected to become the world's second-largest net oil importer by 2050 — after China — with net imports poised to inch toward 10 million barrels/day, the Middle East is expected to remain the world's largest net oil exporting region through 2050, supplying an ever-increasing share of internationally traded crude oil. 

Asia Pacific needs linear policy targets to scale SAF mandate: Neste executive

Asia-Pacific's diverse policy environment prevents a unified EU-style SAF mandate, but country-specific, progressively rising targets rather than the EU's stepped model present the most effective route for scaling sustainable aviation fuel, Stephen Bartholomeusz, senior executive at Neste Singapore, told Platts, part of S&P Global Energy. The structural difference between the EU and Asia-Pacific is fundamental to understanding why a harmonized regional framework remains unlikely, Steven Bartholomeusz, head of Public and Regulatory Affairs, Asia Pacific at Neste, said. 

S&P Global Energy Core

Nucera abandons solid oxide business despite ‘tangible’ hydrogen demand growth

German electrolyzer manufacturer Thyssenkrupp Nucera AG & Co. KGaA has decided to halt development of its solid oxide business amid market uncertainty, despite seeing “tangible demand creation” for renewable hydrogen, the company said in a results statement on Aug. 12. The company’s “strategic readjustment” away from solid oxide electrolyzer cell production comes after a “comprehensive strategic review of market readiness, investment requirements and economic prospects,” it said. “SOEC remains a promising long-term technology, but the current market is not sufficiently mature to offer a viable business case, given the high upfront investment requirements and the uncertain regulatory environment.” 

China's renewable hydrogen capacity more than doubled to 250,000 mt/year at end-2025

China's operational renewable energy-based hydrogen production capacity exceeded 250,000 metric tons/year at the end of 2025, more than doubling from the previous year, as large-scale wind and solar-coupled hydrogen projects accelerated across resource-rich regions including Inner Mongolia, Xinjiang and Hebei provinces, according to the China Hydrogen Development Report 2026 released by the National Energy Administration. China accounted for some 53% of global operational renewable hydrogen production capacity as of the end of last year and is positioned as one of the world's leading markets for renewable hydrogen development, the report said. China's overall hydrogen industry is dominated by conventional production routes. Total hydrogen production capacity exceeded 51 million mt/year in 2025, while actual hydrogen output exceeded 39 million mt/year, up 7.3% year on year, according to the report. 

Malaysia renews 10-year energy efficiency action plan

Malaysia has launched a renewed 10-year energy efficiency plan to support its transition towards net-zero by mid-century, targeting an 11.6% reduction in energy demand by 2035, the Ministry of Energy Transition and Water Transformation said. The National Energy Efficiency Policy and Action Plan aims for cumulative energy savings of 815,000 terajoules through 2035 and a 26 million metric ton of CO2 equivalent cut in emissions, the ministry said. The 815,000 TJ figure — enough to power all of Peninsular Malaysia for nearly two years — represents a significant portion of Malaysia's total energy demand, particularly in electricity generation, which has been a focus of the country's energy transition efforts. The 11.6% efficiency improvement target compares energy use against a business-as-usual scenario, meaning the policy seeks to reduce consumption that would otherwise occur without intervention.