What's going on?

The EU agreed to a set of tougher climate policies on Wednesday.

What does this mean?

European countries have been announcing plans to replace now-absent Russian gas with coal, but it looks like they�re racked with guilt over the move. So after 16 hours of intense talks this week, the European Union agreed to tougher climate measures as part of the region�s goal to become carbon-neutral by 2050. Those measures include a crackdown on products linked to deforestation, a phasing out of permits that allow polluting industries a certain level of emissions, and a landmark deal to ban the sale of gas-fueled cars by 2035. None of this will be cheap, mind you, which is why the EU also agreed to a $60 billion fund to compensate the businesses affected most, as well as to help member countries green up their infrastructure.

Why should I care?

Zooming in: Take an inch, give a mile.
Campaigners aren�t so optimistic that the EU � the world�s third-biggest emitter of greenhouse gasses � will meet its goals, not least because of the concessions it made: the EU proposed allowing carbon-neutral fuels after 2035 so that members like Italy would sign the deal. Those so-called �e-fuels� are criticized for being almost as toxic as burning fossil fuels, not to mention for emitting as much poisonous nitrogen oxide as a traditional engine.

The bigger picture: Volkswagen�s dreaming.
The deal means most carmakers will be forced to produce EVs and EVs alone within the next decade. But Volkswagen�s already well and truly on that bandwagon, even saying this week that it was confident it could overtake Tesla to become the world�s biggest EV maker by 2025. It�s rubbing its hands with glee at the company�s current production problems, and thinks it can seize the chance to capitalize.