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Households will be able to apply for a £5,000 grant to swap their gas boiler for a low-carbon heat pump, as part of government plans to cut emissions.

The government announced that the £450m Boiler Upgrade Scheme, which is part of the more than £3.9bn funding to cut carbon from heating and buildings, will be used to help it reach its target for all new heating system installations to be low carbon by 2035.

However, the government insisted families will not be forced to remove their existing fossil fuel boilers.

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Can Britain have zero carbon electricity?

Ministers said that switching to low carbon heating will cut emissions and reduce the UK’s dependency on fossil fuels, as well as its exposure to global price spikes in gas. It will also support up to 240,000 jobs across the country by 2035, they added.

The scheme will encourage people to install low carbon heating systems such as heat pumps, which run on electricity and extract energy from the air or ground.

The £3.9bn funding will be used to cut carbon from heating and buildings, including by making social housing more energy efficient and cosier, as well as reducing emissions from public buildings, over the next three years.

The £5,000 grants will be available from April and will mean people installing a heat pump will pay a similar amount to those installing traditional gas boilers, according to the plans.

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The grants for heat pumps will be available for households in England and Wales, as part of the UK-wide heat and buildings strategy.

Heat pumps currently cost an average £10,000 to install and do not necessarily deliver savings on running costs despite being much more efficient than gas, because green levies are higher on electricity than on gas.

The government said its plans would help people install low-carbon heating systems in a simple, fair and cheap way as they replace their old boilers over the next decade.

It said it would work with industry to make heat pumps the same cost to buy and run as fossil fuel units by 2030.

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Prime Minister Boris Johnson said: “As we clean up the way we heat our homes over the next decade, we are backing our brilliant innovators to make clean technology like heat pumps as cheap to buy and run as gas boilers – supporting thousands of green jobs.

“Our new grants will help homeowners make the switch sooner, without costing them extra, so that going green is the better choice when their boiler needs an upgrade.”

Business and Energy Secretary Kwasi Kwarteng added: “Recent volatile global gas prices have highlighted the need to double down on our efforts to reduce Britain’s reliance on fossil fuels and move away from gas boilers over the coming decade to protect consumers in long term.

“As the technology improves and costs plummet over the next decade, we expect low carbon heating systems will become the obvious, affordable choice for consumers.”

Greg Jackson, chief executive and founder of Octopus Energy, said that when the grant scheme launches, his company will install heat pumps at about the same cost as gas boilers.

“Electric heat pumps are more efficient, safer and cleaner than gas boilers and can help make homes more comfortable with less energy,” he said.

“Today we’ve crossed a massive milestone in our fight against climate change and to reduce Britain’s reliance on expensive, dirty gas.”

Labour’s shadow business secretary, Ed Miliband, said: “As millions of families face an energy and cost of living crisis, this is a meagre, unambitious and wholly inadequate response.

“Families up and down the country desperately needed Labour’s 10-year plan investing £6bn-a-year for home insulation and zero carbon heating to cut bills by £400 per-year, improve our energy security, create jobs and reduce carbon emissions.

“People can’t warm their homes with yet more of Boris Johnson’s hot air but that is all that is on offer.”

Analysis by Tom Clarke, science and technology editor

A fair, affordable and deliverable plan to wean Britain’s homes off fossil fuels is one of the toughest parts of the government’s net-zero plans.

Levies on energy bills have been a fairly straightforward way of subsidising clean forms of generating electricity – the method used to phase out coal power and replace it with offshore wind for example.

But how do you go about performing a similar trick in persuading the owners of 29 million gas boilers to switch to something else?

Especially when that something else costs 10 times more to buy, and would currently cost significantly more to run?

That’s the challenge of moving away from gas and towards electric-powered heat pumps. And one the Heat and Buildings Strategy has tried to address.

The plan has been delayed by more than a year; partly because of the amount of wrangling between energy secretary Kwasi Kwarteng and Chancellor Rishi Sunak about how to make it work.

But the result, according to most experts I’ve spoken to, is not a bad start.

The plan has sufficient money to help homeowners purchase about 30,000 new air source heat pumps a year for three years.

Nowhere near enough to fix the climate crisis (we need more like 450,000 by 2025 according to the Committee on Climate Change), but it is seen by many as a good start.

It should help generate the economies of scale needed to drive down the costs of the devices to drive up demand.

The strategy also doesn’t ignore the basic physics of electric heat pumps compared to boilers.

Heat pumps are only affordable if they run at lower temperatures than gas boilers (50C vs 70C) and that means to warm a home with a heat pump you need a well-insulated, draft-free house.

The plan boosts funding for improving things like insulation in social housing and for those in fuel poverty.

Again, by nothing nearly enough to meet a net-zero target, but most experts say they couldn’t have expected much more given the current pressures on public spending.

But important details are missing. There’s little support at all for homeowners or private landlords to improve the homes’ energy efficiency.

And there’s not much evidence of support for local authorities who manage the bulk of social housing – much of which is in greatest need of improvement.

Another important, and much trailed element of the strategy is reform of electricity pricing to encourage homeowners to make the switch from gas to electric heat pumps.

Right now gas is significantly cheaper than electricity.

It was expected that the strategy would remove levies from electricity, to make things like heat pumps cheaper to run, and therefore more attractive.

Instead, the government has decided to consult on this with a decision next year.

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Crypto stocks down, IPOs punted amid tariff tumult

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Crypto stocks down, IPOs punted amid tariff tumult

Crypto stocks down, IPOs punted amid tariff tumult

Cryptocurrency firms felt the heat from US President Donald Trump’s sweeping tariff rollout this week as market turbulence sent share prices tumbling and foiled initial public offering (IPO) plans. 

From exchanges to Bitcoin (BTC) miners, crypto stocks suffered as much, if not more, than shares of other companies — despite the industry’s warm relationship with the US president. 

On April 2, Trump announced he was placing tariffs of at least 10% on practically all imports into the United States and adding additional “reciprocal” tariffs on some 57 countries. 

Since then, major US stock indices — including the S&P 500 and Nasdaq — tumbled by roughly 10% as traders braced for a looming trade war. 

Crypto stocks down, IPOs punted amid tariff tumult

Bitcoin miners sold off on Trump’s tariff news. Source: Morningstar

Related: Bitcoin ‘decouples,’ stocks lose $3.5T amid Trump tariff war and Fed warning of ‘higher inflation’

Sharp selloffs

Crypto exchange Coinbase — a prominent ally of Trump during the November US elections — experienced a similarly severe sell-off, with its stock price dropping by roughly 12% during the same period, according to data from Google Finance.

Bitcoin miners are also taking a hit. The CoinShares Crypto Miners ETF (WGMI) — which tracks a diverse basket of Bitcoin mining stocks — has lost roughly 13% of its value since immediately prior to Trump’s April 2 announcement, according to data from Morningstar. 

Even Strategy, one of the best-performing stocks of 2024, wasn’t immune. Its share price has fallen by around 6% on the news, Google Finance data showed.

According to Reuters, investment bank JPMorgan has raised its estimated odds of a global economic recession in 2025 to 60% from 40% previously. 

“Disruptive U.S. policies have been recognized as the biggest risk to the global outlook all year,” JP Morgan reportedly said.

“The effect … is likely to be magnified through (tariff) retaliation, a slide in U.S. business sentiment and supply-chain disruptions.”

Crypto stocks down, IPOs punted amid tariff tumult

Strategy’s shares also dropped this week. Source: Google Finance

IPO delays

The impact of US tariffs hasn’t been limited to stock price volatility. Stablecoin issuer Circle has reportedly paused plans for a 2025 IPO, citing market turbulence. 

According to The Wall Street Journal, Circle is “waiting anxiously” before taking further steps after filing to take the company public on April 1. 

It is among several companies — including fintech Klarna and ticketing service StubHub — reportedly considering altering or shelving IPO plans. 

One exception may be Bitcoin itself, which some analysts say is finally “decoupling” from the broader market.

Bitcoin’s spot price has held above $82,000 this week, even as US equities markets collapsed.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

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Brazilian court authorizes crypto seizure for debt collection — Report

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Brazilian court authorizes crypto seizure for debt collection — Report

Brazilian court authorizes crypto seizure for debt collection — Report

Brazilian judges have been authorized to seize cryptocurrency assets from debtors who owe money and are behind on their payments, signaling a growing recognition that digital assets can be both a form of payment and a store of value.

According to local media reports, the Third Panel of Brazil’s Superior Court of Justice unanimously authorized judges to send letters to cryptocurrency brokers informing them about their intent to seize an account holder’s assets to repay creditors.

The report was confirmed by the Superior Court of Justice, which issued a notice on its website.

The decision was reached unanimously by the Third Panel, which reviewed a case brought forward by a creditor.

“Although they are not legal tender, crypto assets can be used as a form of payment and as a store of value,” a translated version of the Superior Court of Justice’s memo read.

Brazilian court authorizes crypto seizure for debt collection — Report

Source: STJnoticias

Under existing rules, Brazilian judges are allowed to freeze bank accounts and order fund withdrawals, even without a debtor’s knowledge, should they rule that a creditor is owed money.

Following the recent decision, crypto assets now fall under the same purview. 

Minister Ricardo Villas Bôas Cueva, who voted in the five-person panel, said cryptocurrencies still lack formal regulation in Brazil but noted certain bills have recognized the asset class as “a digital representation of value.” 

Related: Brazil’s data watchdog upholds ban on World crypto payments

Despite regulatory uncertainty, Brazil is a major hub for crypto

Although Brazil still lacks an overarching framework for digital assets, with the country’s central bank divvying up the regulatory processes into phases, crypto adoption is surging across the country.

Brazil ranks second among all Latin American countries in terms of “crypto value received,” which is a key benchmark for adoption, according to an October report by Chainalysis. 

Brazilian court authorizes crypto seizure for debt collection — Report

In Latin America, only Argentina has higher crypto penetration in terms of value received as of June 2024. Source: Chainalysis

Earlier this year, crypto exchange Binance was granted approval to operate in the country after it acquired a São Paulo-based investment company. 

A Binance executive told Cointelegraph at the time that Brazil was making “significant strides” in regulating the industry and expects a comprehensive framework to be finalized “by mid-year.”

Nevertheless, not all of Brazil’s regulatory proposals have been favorable for the industry.

In December, the country’s central bank proposed banning stablecoin transactions on self-custodial wallets at a time when more locals were using dollar-pegged tokens to hedge against the devaluation of the Brazilian real.

Industry observers told Cointelegraph at the time that such a ban would be difficult to enforce.

“Governments can regulate centralized exchanges, but P2P transactions and decentralized platforms are much harder to control, which means the ban would likely only affect part of the ecosystem,” said Lucien Bourdon, an analyst with Trezor. 

Related: Brazilian lawmaker introduces bill to regulate Bitcoin salaries

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‘Will the PM side with parents or tech bros?’: Labour peer demands action on children’s smartphone safety

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'Will the PM side with parents or tech bros?': Labour peer demands action on children's smartphone safety

Sir Keir Starmer needs to choose between parents who want stronger action to tackle harmful content on children’s phones, or the “tech bros” who are resisting changes to their platforms, Baroness Harriet Harman has said.

Speaking to Beth Rigby on Sky News’ Electoral Dysfunction podcast, the Labour peer noted that the prime minister met with the creators of hit Netflix drama Adolescence to discuss safety on social media, but she questioned if he is going to take action to “stop the tech companies allowing this sort of stuff” on their platforms where children can access it.

Sir Keir hosted a roundtable on Monday with Adolescence co-writer Jack Thorne and producer Jo Johnson to discuss issues raised in the series, which centres on a 13-year-old boy arrested for the murder of a young girl, and the rise of incel culture.

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The aim was to discuss how to prevent young boys being dragged into a “whirlpool of hatred and misogyny”, and the prime minister said the four-part series raises questions about how to keep young people safe from technology.

Sir Keir has backed calls for the four-part drama to be shown in all schools across the country, but Baroness Harman questioned what is going to be achieved by having young people simply watch the show.

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Sir Keir Starmer held a roundtable with the creators of the Adolescence TV drama.

“Two questions were raised [for me],” she said. ” Firstly – after they’ve watched it, what is going to be the discussion afterwards?

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“And secondly, is he going to act to stop the tech companies allowing this sort of stuff to go online into smartphones without protection of children?

“Because if the tech companies wanted to do this, they could actually protect children. They can do everything they want with their tech.”

She acknowledged there are “very big public policy challenges” in this area, but added of the prime minister: “Is he going to side with parents who are terrified and want this content off their children’s phones, or is he going to accept the tech bros’ resistance to having to make changes?”

Harriet Harman said the government should impose time limits on inquiries
Image:
Baroness Harriet Harman

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Can parliament keep up?

The Labour peer backed the Conservative Party’s call for a ban on smartphones in schools to be mandated from Westminster, saying it would “enable all schools not to have a discussion with their parents or to battle it out, but just to say, this is the ruling” from central government, which Ofsted would then enforce.

“I’m sensitive to the idea that we shouldn’t constantly be telling schools what to do,” she continued. “And they’ve got a lot of common sense and a lot of professional experience, and they should have as much autonomy as possible.

“But perhaps it’s easier for them if it’s done top down.”

Baroness Harman also questioned the speed with which parliament is actually able to legislate to deal with the very rapid development of new technologies, and posits that it could “change its processes to be able to legislate in real time”.

She suggested that a “powerful select committee” of MPs could be established to do that, because “otherwise we talk about it, and then we’re not able to legislate for 10 years – by which time that problem has really set in, and we’ve got a whole load more problems”.

On the podcast, the trio also discussed the 10% tariffs imposed on the UK by Donald Trump and the government’s efforts to strike a trade deal with the US to mitigate the impact of the levy.

The government has refused to rule out scrapping the Digital Services Tax, a 2% levy on tech giants’ revenues in the UK, as part of the negotiations with the Trump administration – a move Baroness Harman said would be “very heartbreaking”.

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