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An oil pumpjack is seen in a field on April 08, 2025 in Nolan, Texas.

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Just as many mission-driven fund managers have reconsidered their defense policy in the wake of Russia’s full-scale invasion of Ukraine, an analyst at Goldman Sachs says it is now time for sustainable investors to re-evaluate their approach to oil and gas companies.

It comes at a time when European energy majors have slashed renewable spending and doubled down on fossil fuels in an effort to boost near-term shareholder returns.

Investments focused on environmental, social and governance (ESG) factors tend to favor companies that score highly on certain criteria, such as climate change, human rights or corporate transparency.

Tobacco giants, fossil fuel companies and weapons makers have typically been among those to have been screened out or excluded from sustainable portfolios.

“In the same way that the sentiment on defense companies has changed with the Russia-Ukraine war, I think the sentiment on ownership of oil and gas should change,” Michele Della Vigna, head of EMEA natural resources research at Goldman Sachs, told CNBC by video call.

A persistent unwillingness to own energy majors is biased by a “major mistake” in evaluating the energy transition from the perspective of European investors, Della Vigna said — an approach that he expects to change.

We see record-breaking temperatures, rising greenhouse gas emissions, oceans warming and sea level rise. I mean, why would we want to see more fossil fuels? Most ESG investors would not.

Ida Kassa Johannesen

Head of commercial ESG at Saxo Bank

Goldman’s Della Vigna outlined three reasons to back-up his view on why ESG investors should bring oil and gas stocks in from the cold.

“Let’s be clear, this energy transition will be much longer than expected. We are going to have, we think, peak oil demand in the mid-2030s [and] peak gas demand in the 2050s,” Della Vigna said.

“And we clearly show that we need greenfield oil and gas development well into the 2040s. So, if we need new oil and gas development, why wouldn’t we own these companies?”

The International Energy Agency, meanwhile, has said it expects fossil fuel demand to peak by the end of the decade. The energy watchdog has also repeatedly warned that no new oil and gas projects are needed to meet global energy demand while achieving net-zero emissions by 2050.

Della Vigna’s second point was that oil and gas companies represent some of the biggest investors in low-carbon energy worldwide, adding that a failure to both engage with, and finance oil and gas stocks would ultimately serve as a barrier to the energy transition.

In addition, Della Vigna said that unlike utilities, which he described as infrastructure builders, oil and gas companies are “market makers” and “risk-takers.”

An array of solar panels create electricity at the Lightsource bp solar farm near the Anglesey village of Rhosgoch, on May 10, 2024 in Wales.

Christopher Furlong | Getty Images News | Getty Images

“So, we need their capabilities, the balance sheet and the risk-taking. They are some of the largest investors in low carbon and whether we like it or not, we also need their core businesses of oil and gas,” Della Vigna said.

“Otherwise, we will not have affordable energy, especially for emerging markets, and we will have energy poverty, which I don’t think is acceptable in any ESG framework,” he continued.

“I think the energy companies that lead the energy transition should be a cornerstone of ESG funds — not a divestment target,” Della Vigna said.

‘Some loosening around the edges’

Scientists have repeatedly pushed for rapid reductions in greenhouse gas emissions to stop global average temperatures rising. These calls have continued through an alarming run of temperature records, with the planet registering its hottest year in human history in 2024.

Extreme temperatures are fueled by the climate crisis, the chief driver of which is the burning of fossil fuels.

Allen Good, a senior stock analyst covering the oil and gas industries at Morningstar, said it’s difficult to foresee a time where there will be a total acceptance of oil and gas in ESG.

He added, however, that a slightly more relaxed approach from investors is feasible on the basis that energy majors significantly increase the amount they invest in renewable and low-carbon technologies.

An Exxon gas station is seen on August 05, 2024 in Austin, Texas. 

Brandon Bell | Getty Images

“I mean ESG, to me, it’s whole raison d’être is the energy transition [and] climate change. So, I would find it hard to believe that they would say they are going to start investing in oil and gas companies,” Good told CNBC by telephone.

“Now, I think what you could start to see is some loosening around the edges, whereby they come to some agreement where a company is investing X amount in renewable energy, or their earnings will be X amount in 10 years, then maybe a Total[Energies] gets into the portfolio. But someone like an Exxon or even a Chevron … I would find that hard to see how that gets in ESG,” he added.

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World’s First all-electric deconstruction site runs on Volvo CE

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World's First all-electric deconstruction site runs on Volvo CE

This world’s first fully electric deconstruction site is being hailed as a landmark in sustainable urban development — and it’s powered by Siemens technology and Volvo Group’s battery-electric trucks and heavy equipment.

The deconstruction project (that’s kind of like a really careful demolition) marks the first full-scale electric deconstruction of its kind, and serves as important proof that with the right partners and the will to do it, urban construction projects like this can be carried out sustainably, today – and all without fossil fuels. It’s all part of Siemens’ €500 million technology campus redevelopment, the deconstruction site in Erlangen, Germany, and marks a pivotal step in advancing sustainable urban transformation and circular construction practices.

In collaboration with the demolition specialists at Metzner Recycling, Volvo CE deployed a fully electric fleet of equipment assets specially chosen to deliver quiet, precision demolition across the 25,000 cubic meter job site.

As well as deconstruction tasks, the electric machines helped sort and process approximately 12,800 tons of construction waste, with 96% recycled into raw materials for future use – supporting the shift towards circular materials management.

VOLVO CE

“At Siemens Real Estate, we are committed to pushing the boundaries of sustainable construction and demolition,” explains Christian Franz, Head of Sustainability at Siemens Real Estate. “This groundbreaking electric deconstruction project boasts an impressive 96% recycling rate and is a testament to our commitment to achieving excellence in sustainability … this project illustrates how partnerships and determination can create a lasting impact and help shape a more sustainable real estate industry.”

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In addition the construction equipment was hauled into the site by Volvo Truck’s battery electric semi trucks, enabling emission-free operations from demolition, to crushing, materials processing, and transport.

Electrek’s Take


With a full line of electric wheel loaders, excavators, articulated haul trucks – even drum rollers and off-grid charging solutions to haul around with their electric semi trucks – Volvo is in a great position to take advantage of increasingly restrictive noise and emission regulations across Europe.

It’s too bad they’re suing California to be able to pollute more.

SOURCE | IMAGES: Volvo CE.


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Hyundai wants to bring back the hot hatch, and its new EV concept nails it

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Hyundai wants to bring back the hot hatch, and its new EV concept nails it

Hyundai offered a first look at the hot hatch earlier this week after unveiling the Concept Three, its first compact EV under the IONIQ family. The new EV, set to arrive as the IONIQ 3, already has a sporty, hot hatch look, but that could be just the start.

Hyundai has a new EV hot hatch in the making

The Concept Three took the spotlight at IAA Mobility in Munich with a daring new look from Hyundai. Based on its new “Art of Steel” design, the concept is a stark contrast to the Hyundai vehicles on the road today.

Hyundai took the “Aero Hatch” design to the next level, deeming it “a new typology that reimagines the compact EV silhouette.” And that it does.

When it arrives in production form in mid-2026, it’s expected to take the IONIQ 3 name as a smaller, more affordable sibling to the IONIQ 5.

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Hyundai is set to unveil the electric hatchback next spring with an official launch planned in Europe in September 2026. According to Hyundai’s European boss, Xavier Martinet, the IONIQ 3 could make for the perfect EV hot hatch.

Hyundai-EV-hot-hatch
The Hyundai Concept THREE EV, a preview of the IONIQ 3 (Source: Hyundai)

Martinet hinted that the IONIQ 3 could receive the “N” treatment, telling Auto Express that “The concept is quite sporty, and obviously you have heritage with N brand.” Hyundai’s European boss added that “it’s a fair topic to consider.”

Although it doesn’t sound too convincing, Hyundai’s head of design, Simon Loasby, called it “an opportunity.” Loasby was quick to add, “We’re not calling it N, it’s not approved yet.”

Hyundai-EV-hot-hatch
The Hyundai Concept THREE EV, a preview of the IONIQ 3 (Source: Hyundai)

“But I think everyone in the company is realising what Europe needs, and that’s compact hot hatches, so it’s a topic for discussion,” Hyundai’s design boss added.

The Concept Three is 4,287 mm long, 1,940 mm wide, and 1,428 mm tall, with a wheelbase of 2,722 mm, or about the size of the Kia EV3 and Volkswagen ID.3. Both of which are set for hot hatch variants.

Hyundai-EV-hot-hatch
The Hyundai Concept THREE EV, a preview of the IONIQ 3 (Source: Hyundai)

If the IONIQ 3 N does come to life, it will be the third Hyundai EV to receive the high-performance upgrade, following the IONIQ 5 N and IONIQ 6 N.

The IONIQ 5 N “was just the first lap,” according to Joon Park, vice president of Hyundai’s N Brand Management Group. He told Auto Express that Hyundai is “at the starting line” and plans to apply what it learned from its first EV hot hatch to upcoming models.

If you’re looking for an affordable electric hot hatch, Hyundai already offers one. After Hyundai cut lease prices last month, the IONIQ 5 N is now listed at just $549 per month. That’s $150 less per month than in July.

Want to test one out for yourself? You can use our link to find 2025 Hyundai IONIQ 5 models in your area (trusted affiliate link).

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China’s surge pushes global wind toward fastest growth ever

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China’s surge pushes global wind toward fastest growth ever

The global wind industry is going to hit some unprecedented growth milestones, according to Wood Mackenzie’s Global Wind Power Market Outlook for Q3 2025. The world is on track to add its second terawatt of wind capacity by 2030. To put that in perspective, it took 23 years to install the first terawatt, which was reached in 2023. The second will come in just seven.

Wind is also set for a record-breaking year in 2025. Global additions are expected to reach 170 gigawatts (GW), with more than 70 GW coming online in the last quarter of the year alone. That means Q4 could add more capacity than the total installed in any full year before 2020.

This forecast represents a 13% jump from the previous quarter, primarily driven by explosive onshore growth in China. Global wind capacity is expected to double from 2024 levels by 2032. Outside of China, the industry is also expanding, though on a slower path. Excluding China, the world will reach 1 terawatt in 2031 and double 2024 capacity by 2034.

However, policy uncertainty and the Trump administration’s hostility toward the wind industry, particularly offshore wind, are negatively impacting the US market. Trump’s big bill act (OBBBA), passed in July 2025, ends tax credits after 2027. That’s sparked a rush of projects in the short term, but it drags down the long-term outlook. For the first time, the US has fallen behind India and Germany in forecasted 10-year additions.

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“China’s dominance in the wind industry is becoming more pronounced,” said Sasha Bond-Smith, research analyst at Wood Mackenzie. “While other established markets struggle with policy uncertainty and economic headwinds, we’re witnessing an unequalled concentration of growth in China that’s reshaping the industry landscape.”

China’s onshore forecast jumped this quarter thanks to rising electricity demand from data centers and electrification. Wind is proving more profitable than solar in liberalized power markets, but China’s offshore wind sector is facing challenges. Sea-use conflicts are slowing or even halting projects already under construction.

Despite those hurdles, Wood Mackenzie now projects that wind could match solar’s power output in China over the forecast period. That would cement wind’s central role in helping the country meet climate goals while keeping up with surging power demand.

Elsewhere, onshore wind remains steady across Europe, Asia Pacific, and emerging markets, with tender results and pipelines supporting progress. Offshore wind is struggling, though. High costs and failed tenders are creating setbacks in Europe and delays in emerging markets. Policymakers are under pressure to rethink contract structures to keep projects moving.

“The wind industry’s most significant transformation in decades continues to unfold,” said Kárys Prado, senior research analyst at Wood Mackenzie. “While achieving historic scale, success will depend on how effectively the industry navigates this new geography of growth and adapts to evolving policy landscapes.”

Read more: FERC: Solar + wind made up 91% of new US power generating capacity in H1 2025


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