By Sharon Kimathi

Hello! I know we’ve covered the “renewable paradox at play” in relation to the Iran warpushing European leaders to invest in more clean energy initiatives.

Today’s newsletter follows up on that trend but this time, it’s all about electric vehicles.

The CEO of Volkswagen's Spanish subsidiary ​SEAT/CUPRA expects a potential ‌boost to EV demand if petrol prices ​remain elevated, adding electricity ​prices also play an ⁠important role.

"Of course, if ​petrol prices go up ​and it's something that stays for long, this could be ​a booster," Markus ​Haupt told reporters. However, ensuring electricity ​prices are competitive ​is ⁠key in making EVs attractive, Haupt said, adding, "This ⁠has ​to be our ​priority number one."

Additionally, Polestar CEO Michael Lohscheller said used-car sales were exceeding those of new vehicles, as a jump in gasoline and diesel prices from the Middle East conflict drives customers toward less-expensive EV options.

"Used cars are growing faster than new ​cars, especially because so many people are coming now and saying, 'we are price-sensitive ​people. We look at EVs, and we prefer used cars,'" Lohscheller told Reuters after the company released its first-quarter sales.

Used electric vehicle sales in ​Europe have been boosted by the war in Iran, online ⁠car platforms also told Reuters last month.

While momentum in Europe continues, Polestar has fared poorly in other key markets such as the U.S. where it ⁠sold just ​735 vehicles during the quarter, amounting to 5.6% ​of its total sales, down from 11.1% last year.

Speaking of the United States, keep scrolling for a story on how the recent environmental rollbacks aimed at boosting power generation to meet soaring artificial intelligence-driven demand are affecting local communities facing coal-fired power plant air pollution in today’s Climate Lens.

Climate Buzz

1. War-fuelled diesel crunch hits Bangladesh farmers in key planting season

Following on from yesterday’s newsletter on the rise of fertilizer and fuel costs for farmers, the fuel crunch ​from the Iran war is rippling through Bangladesh’s countryside, leaving tens of thousands of farmers struggling to secure diesel ‌ for irrigation at a critical stage of the rice paddy season.

Click here to read more about how Bangladesh’s farmers are dealing with diesel shortages, rationed sales and long queues at fuel stations, lower yields and increased losses.

2. More harsh weather in store for Afghanistan after 148 deaths

Afghanistan faced further rough conditions on Thursday, the country's weather authorities said, following ​floods, earthquakes and landslides that have killed 148 ‌people over the past two weeks.

3. Australian utilities warn data centre demand risks pushing up household bills

Australian energy and water utilities Transgrid and the Water Directorate warned users that ​the strain on grid and water resources from a more than A$100 billion ($70 billion) data centre build-out in the country's biggest ‌state could sharply push up household bills.

In submissions to a New South Wales state parliamentary inquiry, the utilities said existing laws were insufficient to protect consumers from bearing the rising costs.

4. Africa to pilot bond aimed at formalising artisanal mining

Zambian copper miner Metalex Commodities and Canada-based advisory firm Veridicor are piloting a sustainability ​bond aimed at integrating artisanal miners into formal supply chains. The instrument links investor returns to predefined social and ​environmental outcomes for workers, communities and host economies rather than output.

5. Argentina passes reform to ease mining activity in glacier regions

Argentina’s Chamber of Deputies passed a government-backed reform that aims to promote mining ‌investment in glacier regions. Pushed by libertarian President Javier Milei's government, the reform drew controversy for allowing provinces to ​set their own glacier and periglacial protection standards.

Critics say this shift could undermine protections for high-altitude ice formations that serve as key freshwater reserves and threaten water resources.

What to Watch​

Click here to watch a video on how researchers in Hawaii are testing whether abandoned fishing nets and household plastic waste can be turned into road surfacing, as the state looks for new ways to deal with marine debris and pressure on landfill space.

Climate Commentary

• Is U.S. President Donald Trump pursuing former U.S. President Richard Nixon’s “madman theory” in negotiations? Click here to find out in a column by my esteemed colleague Ross Kerber, Reuters U.S. Sustainable Business Correspondent.

• Helen Pattinson, CEO of NGO War Child UK and John Pearson , CEO of DHL Express, share their thoughts with Ethical Corp Magazine on children living through conflict and how business leaders can use corporate social responsibility as part of a shared effort to protect children and strengthen communities. Click here for the full comment.

• Sticking with the topic of corporate social responsibility, Ethical Corp Magazine contributorCatherine Early writes about the ways investors can push for action to end deforestation and human rights risks in nickel mining.

Climate Lens

Coal and data centers: After years pushing against coal, the rise of power-hungry data centers has nudged the country's most polluting power source back onto the stage. Coal-fired power plants are also found to be in predominantly Black neighbourhoods of North St. Louis, which already has some of the city’s worst air quality.

About 78% of ​African Americans live within 30 miles of a coal-fired power plant, according to the NAACP, compared to 56% of non-Hispanic whites. Click here for the full insightful Reuters feature.

Number of the Week

25%

That’s how much India's steel mills aim to cut carbon ​emissions by over the next decade and reduce reliance on coal, while ‌the world's second-biggest producer of the alloy plans to more than double output, according to a document seen by Reuters.