An opportunity on climate change

Follow Us Get the newsletter Amid the wreckage of the coronavirus pandemic, a historic opportunity is emerging to bolster the fight against another global threat: climate change. With governments spending trillions of dollars to reignite their economies, finance ministers and business leaders argue that much of the cash should to go to cutting emissions, Laura Millan Lombrana and Akshat Rathi report. Leading the way is the European Union. Pre-outbreak it planned to make the 27-member bloc the first carbon neutral continent by 2050. The European Commission is scheduled tomorrow to unveil a multi-trillion euro plan to fuel the recovery — a draft suggests hundreds of billions of euros will promote electric vehicle sales, renewable energy projects and new, green technologies. Already cheaper batteries, tough emissions regulation and mass production mean that by later this year some electric vehicles will cost the same as combustion models, according to BloombergNEF's latest outlook. Global carbon dioxide emissions are 17% lower compared with the same time last year. But with prices of traditional energy sources battered by the slowdown, there's suddenly less incentive to switch away from dirty fuels like coal. And President Donald Trump, a supporter of the fossil fuel industry who pulled the U.S. out of the Paris climate accord, is weakening environmental rules. In the middle of the biggest economic crisis since the Great Depression, creating jobs and sparking a quick turnaround regardless of the environmental impact surely will take precedence. Yet now there's a chance to both invest in growth and intensify the fight against the warming of the planet. The question is, will the world's leaders seize it? — Karl Maier Top: An office renovated by Eco Intelligent Growth in Barcelona using sustainable architecture and design principles, and the company's headquarters on the outskirts of Barcelona. Tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Change of plans | Trump threatened to move the Republican National Convention from North Carolina unless the state's democratic governor guarantees the party will be allowed full attendance, regardless of coronavirus restrictions. Trump took aim at Governor Roy Cooper in a series of Twitter posts, saying he wanted to be assured that Republicans would be permitted to gather in Charlotte in August. As Trump presses states to reopen, government workers and their unions say they're increasingly concerned that their bosses will force them back to the office without sufficient protection. Aide's defiance | Boris Johnson's most senior adviser refused to apologize following allegations that he broke the government's virus lockdown rules, deepening pressure on the U.K. prime minister. Dominic Cummings said he had not considered stepping down, and it was up to Johnson to decide if he should lose his job amid a public outcry over his actions during the peak of the coronavirus outbreak. A U.K. government minister has resigned in protest today, the first casualty of the crisis. Looming protests | Hong Kong leader Carrie Lam defended China's plan to impose sweeping national security laws in the city, a move that could further anger protesters who plan major rallies tomorrow. Local residents support the proposed legislation, she told reporters, rejecting criticism from foreign governments. Lam also vowed that Hong Kong's freedoms would be preserved, despite growing concerns over its autonomy. Bailout price | The EU's executive body has put a price on Germany's offer of financial aid to Lufthansa: The stricken air carrier must give up free flight slots at airports in Frankfurt and Munich. As the coronavirus punctures a decade-long aviation boom, the Lufthansa package will be the first instance of state recapitalization to be weighed by the EU after it loosened rules that usually prevent governments from pumping money into favored firms. Targeting the poor | As the spread of the pandemic in Brazil makes it the world's second-worst hotspot, the coronavirus is moving to regions of extreme poverty that lack intensive care units, and often, clean water. As Julia Leite and Martha Beck report, this is taking place as President Jair Bolsonaro continues to stand out for his belittling of the pandemic's significance. What to Watch: Prime Minister Viktor Orban has vowed to move by today toward giving up his right to rule Hungary indefinitely by decree, which some critics had warned would herald a de facto dictatorship. French President Emmanuel Macron is set to announce measures to support auto companies before other European governments, highlighting the crucial role the industry plays in the economy. The U.K. government is launching a review into Huawei Technologies as officials draw up a plan to reduce the Chinese tech giant's involvement in new generation mobile networks. And finally ... India's skies opened up for domestic flights after two months of a virus lockdown in the most surreal fashion. Which planes took off, and when, came down to the wire, reports Muneeza Naqvi, who took one of the first flights between New Delhi and Mumbai. No one quite knew what was happening, who needed to go into quarantine, or if planes would even be allowed to land at their destinations. Travelers rest on benches at Delhi Airport on May 25. Photographer: T. Narayan/Bloomberg   You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. 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