Climate target walk-backs highlight ‘overzealous’ policy pledges, OPEC chief says
Haitham al-Ghais, secretary-general of the Organization of Petroleum Exporting Countries (OPEC), speaking at the Energy Asia Summit on June 26, 2023.
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LONDON — The recent spate of countries postponing or adjusting their climate targets shows that some of the initial pledges were ‘overzealous,’ the head of the OPEC group of oil producers said Monday.
“I hope they are not U-turns, as much as they are a recognition and the realization that some of the policies may have been a bit overzealous: the timelines, the deadlines, the time constraints,” Haitham al-Ghais, head of the Organization of the Petroleum Exporting Countries, said.
Speaking to CNBC’s Dan Murphy on the first day of the Abu Dhabi International Progressive Energy Congress, he added that an efficient energy transition away from fossil fuels needs “the right infrastructure in place,” such as electrical grids, sufficient charging stations for electric vehicles, and the availability of critical minerals.
Among such climate policy walk-backs, al-Ghais cited Poland’s move to appeal against European Union policies to ban the sale of fossil fuel cars from 2035; the recent EU agreement on a diluted version of the bloc’s ‘Euro 7’ emissions rules; and the U.K.’s shift to delay a prohibition on the sale of new gasoline and diesel cars from 2030 to 2035.
“I think when it comes to consumers feeling a pinch in their pockets, that’s when politicians become aware that it is difficult to implement policies that [are] maybe too aggressive, or a bit overzealous without having the right systems in place, to make sure that whatever new policies are advocated for do not affect the consumers,” al-Ghais said.
Some traders and analysts say a confluence of voluntary and coordinated supply cuts implemented by OPEC and its non-OPEC allies, collectively known as OPEC+, contributed — alongside demand recoveries — to a surge in oil prices that is fueling global inflation. This is a particular risk in Europe, where sanctions in the wake of Moscow’s full-scale invasion of Ukraine have cut off buyers from Russia’s crude and oil products. Ice Brent crude futures with December expiry were trading at $92.67 per barrel at 13:10 London time, up by 47 cents per barrel from the Friday settlement.
Asked about the impact of high oil prices on consumers, al-Ghais said this “depends on the state of the global economy” and noted increases in oil demand.
“I think this in itself answers the points about, are these price levels affecting demand? We’re seeing historically high, phenomenally high growth figures for oil demand,” he said.
Despite this, several European traders and refiners have said that crude prices above $100 per barrel raise the possibility of demand destruction, where — in the case of the oil market — consumers respond to higher prices at the pump with fewer purchases. The Paris-based International Energy Agency has, meanwhile, projected that demand for fossil fuels like oil, gas and coal will peak before 2030 — a forecast that OPEC rejects.
An OPEC+ technical committee convenes digitally on Wednesday to review market fundamentals and the individual production compliance of member countries. While in itself unable to tweak OPEC+ policy, this Joint Ministerial Monitoring Committee can call for an emergency ministerial meeting of the coalition. Three OPEC+ delegates, speaking anonymously because of the sensitivity of the discussions, told CNBC it is unlikely this week’s JMMC meeting will lead to policy adjustments.
OPEC at COP28
The good faith of OPEC+ countries in their climate commitments has been questioned given their role as crude producers and because several members, while in the process of diversifying their economies, depend on oil revenues.
OPEC scored an indirect victory with the naming of its third-largest member, the United Arab Emirates, as host of the upcoming COP28 diplomatic gathering on climate change over Nov. 20-Dec. 12. The controversial appointment — along with that of state-owned Abu Dhabi National Oil Company boss Sultan al-Jaber as president of COP28 — has resulted in vocal public backlash, with critics citing the discrepancy between the UAE’s growing oil production capacity and its professed climate commitments.
“I believe it is the right choice for COP to happen in the UAE, in an oil producing country, to show the world how oil producers can decarbonize, reduce emissions, as well as continue to provide stability and security in terms of world supplies,” al-Ghais said Monday, adding that OPEC will be represented at COP28 with a “nice, big pavilion” to promote the individual climate work of coalition members.
While formally reunited by their common interests in the oil market, some OPEC members have the capacity to produce renewable energy, such as solar, while Saudi Arabia and the UAE have set sights on producing and marketing hydrogen.
Tesla has announced that it is launching Cybertruck in South Korea, only the fourth market where the electric pickup truck becomes available and the first outside North America.
While Tesla took reservations worldwide when unveiling the Cybertruck in 2019, the automaker never confirmed plans to launch the vehicle outside North America.
The Cybertruck is currently only available in the US, Canada, and Mexico.
By any metric, it has been a total commercial flop.
Tesla had accumulated over 1 million reservations for the vehicle and planned for a production capacity of 250,000 units per year, with CEO Elon Musk saying that it could be increased to 500,000 units.
After Tesla unveiled the production version for a much higher price than announced initially and a significantly shorter range, demand fell off a cliff, and now Tesla now has issues selling the truck at a rate of 25,000 units per year.
This quarter is expected to be better due to the end of the tax credit in the US pulling demand forward, but it could prove extremely difficult to move the Cybertruck in North America starting in October.
Tesla is now turning to South Korea to try to sell some Cybertrucks.
The American automaker has told South Korea reservation holders to confirm their orders over the next week, as it will start converting reservations into orders – something it hasn’t done since expanding into Canada and Mexico last year.
The announcement was made via X:
South Korea might sound like a strange, relatively small, distant market for the first expansion of the Cybertruck outside North America, but Tesla is extremely popular in South Korea.
In July, it sold a record number of more than 7,000 vehicles in a single month.
Tesla also has an extremely strong shareholder base in the country.
However, in South Korea, the Cybertruck is going to start at 145 million South Korean won, which is approximately $104,000 USD – making the Cybertruck about $24,000 more expensive than in the US.
It should not be easy to sell in significant volumes despite Tesla’s popularity in the market.
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Environment
Hyundai is plowing billions into building more cars in the US, including a new robot-run plant
Hyundai wants to sell more vehicles in the US. The South Korean auto giant is investing an additional $5 billion to ramp up production. With billions more on the table, Hyundai will build a new robotics facility while ramping up production of Hyundai and Kia vehicles in the US. Here’s what’s coming next.
How Hyundai’s $26 billion investment will boost US sales
Have you noticed more Hyundai, Kia, and Genesis vehicles on the road lately? Over the past few years, the South Korean automakers have grown significantly in the US.
In the first half of 2025, Hyundai and Kia sold more vehicles than in any first half since entering the US market nearly 40 years ago.
Hyundai has no plans of slowing down after announcing another $5 billion investment on Tuesday, “significantly expanding the Group’s footprint in the US market.” The new funds will be used for several new projects, including a new state-of-the-art robotics facility and steel plant in Louisiana.
The new funding is in addition to the $21 billion investment Hyundai announced just a few months ago, bringing the company’s total to a whopping $26 billion.
Hyundai will use the investment over the next three years (2025 – 2028) to boost production, including Kia and Genesis vehicles.
It’s also building a new robotics innovation hub to design, manufacture, and deploy vehicles. Hyundai expects the advanced new facility will create about 25,000 jobs in the US over the next four years. It will have an annual production capacity of 30,000 units.
EVs and hybrids are driving growth
The new investment comes after Hyundai and Kia hit a milestone, selling a combined 1.5 million “eco-friendly” vehicles cumulatively in the US this week.
Hyundai’s Tucson Hybrid and the Kia Niro Hybrid are the brand’s top-selling eco-friendly cars. Meanwhile, the all-electric Hyundai IONIQ 5 remains one of the top-selling EVs in the US and is the brand’s fourth most popular eco-friendly vehicle.
With leases starting as low as $159 per month, the 2025 Hyundai IONIQ 5 is one of the most affordable, efficient EVs on the market. Hyundai has upgraded its best-selling EV with more range (now up to 318 miles), a fresh new style, and a built-in NACS port, allowing you to recharge at Tesla Superchargers.
Hyundai’s new three-row IONIQ 9 is listed for lease as low as $299 per month, and that’s for a nearly $60,000 SUV.
Both the IONIQ 5 and IONIQ 9 are built at the massive new Hyundai Motor Group Metaplant America (HMGMA) in Georgia. Kia’s EV6 and EV9 are assembled at a separate plant in Georgia.
Looking to check one out for yourself? We can help you find vehicles in your area. You can use our links below to view Hyundai and Kia models near you.
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In a move that underscores the growing instability in international e-bike trade, premium electric bike maker Riese & Müller has paused all e-bike shipments to the United States, citing unpredictable steel tariffs as the final straw.
The German brand, known for its high-end urban and cargo e-bikes, informed US dealers this week that it is halting exports for the foreseeable future. While the company pointed to the recent reinstatement of a 50% tariff on certain steel components from overseas, including Germany, the broader issue here seems to be the chaotic and ever-shifting tariff landscape surrounding e-bike imports.
“We need to take a few days to carefully evaluate this situation and its implications before proceeding with further steps,” explained the company in an email to its dealers in the US, according to Bicycle Retailer.
This isn’t the first time tariffs have disrupted the flow of electric two-wheelers into the US. The Trump administration’s Section 301 tariffs targeting Chinese goods initially shook up the industry during the administration’s first term, hitting Chinese-made e-bikes and components with 25% duties before being temporarily suspended. Those tariffs whipped back and forth as exclusions came and went, then became a double whammy after the Trump administration’s “reciprocal” tariffs added even more hardships to e-bike importers in the US. And now, as of July 1, additional steel tariffs have expanded the uncertainty.
What’s unusual in Riese & Müller’s case is that most e-bikes – even expensive ones – use relatively little steel compared to aluminum. Frames, forks, wheels, and most structural components are increasingly made from aluminum alloys or carbon fiber. But with the tariff code system as vague and inconsistently enforced as it is, it seems R&M simply doesn’t want to take the risk of unexpected import costs – or the administrative mess that comes with it, including having to account for how much of a bike is produced from steel components and what the value of those components proves to be.
The impact on the US market will likely be minor in volume; Riese & Müller is a premium but somewhat boutique brand with a loyal yet small customer base. Still, this is a canary in the coal mine. If even premium brands are choosing to step away from the US market over tariff unpredictability, what happens when larger, mass-market brands start running into similar issues?
For now, dealers in the US are being told to sell through existing stock and not take additional orders until the company can determine whether it will be able to continue importing e-bikes into the US. But if the trade war tariffs contineu, this may not be the last premium brand to throw in the towel – at least temporarily.
Electrek’s Take
This isn’t just about one German e-bike brand putting things on pause – it’s a red flag for the industry. While Riese & Müller may be small in terms of US volume, their decision shows how unpredictable tariffs, even on seemingly minor components, can create enough uncertainty to shut down an entire market channel. Most e-bikes are made primarily from aluminum, not steel, but when customs enforcement can interpret tariff codes in vague or inconsistent ways, no brand wants to gamble on a five-figure shipment getting hit with a surprise 25-50% fee.
What’s more concerning is that this adds to a growing stack of trade policy hurdles facing e-bike makers: China-focused tariffs, broader “reciprocal” tariffs, battery import duties, and now steel restrictions hitting European brands too. There’s no coherent strategy here, just a patchwork of protectionist measures that hurt importers, confuse dealers, and raise prices for consumers. If the US wants to promote micromobility and clean transportation, it’s going to need smarter policies than this.
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