Today: Only the very largest businesses are now likely to be subject to the bloc’s green regulations; Chevron CEO sees growing potential for alternative energy; Ukraine’s strategy for keeping the lights on through a winter of war.

Welcome back: The European Union is set to reduce its sustainability reporting requirements after negotiators from the European Parliament and European Council struck an agreement Tuesday to simplify the rules.

WSJ Pro Sustainable Business's Yusuf Khan reports that the changes mean that only the very largest companies are likely to be subject to the bloc’s sustainability laws, following criticism and pressure from both inside and outside the EU that the reporting requirements were too overbearing and added significant costs for companies.

The EU had come under significant pressure over its sustainability rules, amid concerns the requirements hampered companies’ competitiveness. In September 2024, former European Central Bank President Mario Draghi released a report saying bureaucracy and red tape within the EU were hampering growth. This led lawmakers in Brussels to call for changes.

Since then, pressure has only mounted. The Trump administration has taken aim at the rules, with one regulation being singled out for criticism in a trade agreement between the U.S. and EU signed in August. Meanwhile, companies like Exxon Mobil have railed against the laws, with CEO Darren Woods describing them one as “probably some of the worst legislation I’ve seen passed anywhere in the world,” during a recent interview.

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• President Trump doesn’t have many good things to say about Europe these days. Neither do some of America’s most powerful CEOs. (WSJ)
• The EU agreed to set a legally binding climate target to reduce greenhouse gas emissions by 90% from 1990 levels by 2040. (Reuters)

The head of one of the biggest oil companies in the world has his eye on expanding a variety of alternative energy sources.

“We worked on things that leveraged our capabilities, our customers, our value chains,” said Chevron CEO Mike Wirth, highlighting projects for hydrogen, carbon capture and storage, as well as geothermal and biofuels at the WSJ CEO Council on Tuesday. 

Wirth said a core criteria was being able to compete and meet customer needs without relying on long-term subsidies, reports WSJ Pro Sustainable Business's Clara Hudson.

The Chevron CEO said he has hope for biofuels because they are the most established of alternative energy sources, while hydrogen “is proving to be very difficult” because “you’re fighting the laws of thermodynamics.”

Geothermal energy, meanwhile, “offers some real promise,” even though it is early days for many novel methods of harnessing heat from the earth.

• ExxonMobil said it would slash planned spending on low-carbon projects by a third, as oil majors pare back clean energy initiatives. (FT)
• The nuclear and fossil fuel industries are joining forces in an effort to undermine renewables. (Bloomberg)

Ukraine’s power grid has weathered three winters of Russian bombardment during which engineers patched up substations under missile and drone fire and civilians spent days in the cold and dark as Moscow attempted to sap their resolve, Jane Lytvynenko writes for The Wall Street Journal.

Now, in its fourth winter of war, the country’s energy suppliers are banking on a network of massive, U.S.-designed batteries held at secret locations to help keep the lights on. The battery parks, with a combined total capacity of 200 megawatts, can supply around two hours of energy for roughly 600,000 homes, equivalent to powering a city about the size of Washington, D.C.

The $140 million program, completed in August, is crucial for Ukraine, which has raced to modernize and decentralize its electricity grid in part to help it withstand Russian barrages. The battery parks are designed to help plug holes in and regulate Ukraine’s energy supply, offering an alternative source of power even when the grid comes under attack.

Minimal equipment is required to replace each cell in the new network, and all of them have fire-safety features that “in the context of Ukraine become more important,” said Julian Nebreda, the CEO of Fluence, the American company that supplied the batteries.

• Battery prices are forecast to drop next year due to a glut of manufacturing capacity in China. (Bloomberg)

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• Ford is partnering with Renault to produce two small electric vehicles for the European market, with the first vehicles arriving in 2028. (WSJ)
   
• Haven Energy has raised $40 million to install more solar panels in California homes with batteries that it leases. (WSJ)
   
• Private equity-backed chemical company Alyeschem plans to build Alaska’s first methanol production plant. (WSJ)
   
• Apple’s lead environmental strategist Lisa Jackson is retiring in January after 13 years on the job. (Trellis)
   
• Shipping dynasties are among investors supporting sail technology that claims to have potential to reduce fuel needed by vessels. (Bloomberg)
   
• A federal judge struck down President Trump’s halt on approvals of all wind power projects on federal lands and waters. (Reuters)
   
• The carbon-capture story reveals the nation’s shifting priorities and inconsistent approach to clean energy. (MarketWatch)
   
• Temperatures are on track to exceed the 1.5C threshold of average global warming for the longest period yet. (FT)

WSJ Pro Sustainable Business gives you an inside look at how companies are tackling sustainability. Send comments to bureau chief Perry Cleveland-Peck at perry.cleveland-peck@wsj.com and reporters Clara Hudson at clara.hudson@wsj.com and Yusuf Khan at yusuf.khan@wsj.com. Follow us on LinkedIn at perrycp, clara-hudson and yusuf_khan.