Strong electric vehicle (EV) sales in Europe and North America helped drive global EV sales up 18% year-on-year in January, despite softer growth in China, according to EV research firm Rho Motion.

A total of 1.3 million EVs were sold worldwide in January, marking a significant increase from the same period in 2024. However, sales dropped 35% from December, a seasonal decline largely driven by the Chinese New Year effect.

Europe and North America Lead the Charge

In Europe, including the EU, European Free Trade Association (EFTA), and the UK, EV sales jumped 21% year-on-year to 250,000 units. Similarly, the US and Canada saw a 22% increase, with sales reaching 130,000 vehicles.

The European market’s strong start to 2025 comes as new emissions standards take effect, pushing automakers to accelerate EV production to avoid regulatory penalties.

China’s EV Market Slows, But Seasonal Trends Play a Role

China, the world’s largest EV market, experienced softer growth, with EV sales rising just 12% in January 2025 compared to the previous year. However, analysts attribute this slowdown to seasonal factors, as the Chinese New Year typically results in weaker vehicle sales in January and February.

Rho Motion expects Chinese EV sales to remain sluggish in February due to the holiday period, before rebounding later in the year.

Charles Lester, Data Manager at Rho Motion, commented on the trend:

“With emission standards coming into force for European manufacturers this year, all eyes are on the opening month for the region, which shows encouraging growth at 21% compared to the same time last year.

The Chinese market, as expected, shrunk 43% from the previous month as drivers tend to go all in at the end of the year before the Chinese New Year public holidays fall in January and February.

The US and Canada market hasn’t yet been impacted by the new occupant of the White House and is showing a consistent year-on-year increase of 22%. All in all, an uncontroversial start to the year for the EV market globally, though this is not going to remain that way for long.”

Europe’s EV Sales Bolstered by New Regulations

The EU’s EV market remains robust, despite higher tariffs on Chinese EVs introduced last year over concerns of unfair government subsidies. The tariffs target battery electric vehicles (BEVs), prompting many Chinese manufacturers to shift focus to hybrid vehicles to maintain their foothold in Europe.

Among individual markets, Germany recorded a 40% increase in EV sales in January. In contrast, French EV sales fell 15%, following the introduction of a new weight tax on plug-in hybrid electric vehicles (PHEVs). This led many consumers to purchase PHEVs in December 2024 to avoid the tax, causing a decline in January sales.

Looking Ahead: EV Market Faces Policy Shifts and Trade Uncertainty

While January’s figures reflect steady global EV adoption, analysts caution that trade policies, emissions regulations, and government incentives will play a crucial role in shaping the market in 2025.

With Europe tightening emission rules, China adjusting to seasonal slowdowns, and North America awaiting potential policy shifts, the EV sector is set for an eventful year ahead.

Oil giant BP has announced plans for a major strategic overhaul following a sharp decline in profits, a move expected to include scaling back its renewable energy ambitions and increasing oil and gas production.

The company reported a net income of $8.9 billion (£7.2 billion) for 2024, a significant drop from $13.8 billion in the previous year. BP attributed the decline to lower oil and gas prices as well as reduced profits from its refining operations.

Shift Away from Renewables

BP had previously committed to generating 50GW of renewable energy capacity by 2030, but that target is expected to be abandoned when the company unveils its revised strategy on February 26.

The company has already been retreating from its renewable energy commitments. In December, it transferred the bulk of its offshore wind assets into a joint venture with Japanese company Jera, effectively separating them from its core fossil fuel business. BP also froze new wind projects in June 2023 and is now expected to cut its $10 billion renewables investment plan by up to half.

Investor Pressure and Growing Criticism

BP’s shift towards fossil fuels comes as activist hedge fund Elliott Management has acquired a stake in the company, pushing for greater investment in oil and gas. Analysts suggest Elliott’s influence may lead to board changes.

Russ Mould, an analyst at AJ Bell, noted that BP’s profit slump had strengthened Elliott’s case. “A clear and credible plan is desperately needed if BP is going to remain the master of its own destiny,” he said.

However, the decision to pivot back to oil and gas has drawn criticism from environmental groups, who argue that BP and other fossil fuel companies are worsening the climate crisis.

Global Witness, a human rights campaign group, pointed out that BP invested nearly £9 billion in oil and gas last year, compared with only £1.3 billion on renewables and low-carbon energy.

“As the world battles extreme weather disasters supercharged by fossil fuels, it is wrong that polluters such as BP can double down on the oil and gas that is driving climate breakdown,” said Lela Stanley, the group’s head of fossil fuels investigations.

Industry-Wide Trend Towards Fossil Fuels

BP’s move reflects a broader trend in the oil and gas industry, with several major energy firms scaling back their renewable energy investments due to concerns over profitability.

Last week, Norwegian energy giant Equinor announced plans to halve its investment in renewable energy over the next two years, citing rising costs and a slower-than-expected transition to low-carbon energy. Shell has also stepped back from new offshore wind investments, following similar concerns.

Former BP strategy head Nick Butler defended the shift, stating that big oil firms would invest in renewables “when they can see a clear profit.”

Political Uncertainty and Climate Implications

The debate over fossil fuel investment is also playing out on the political stage. Former U.S. President Donald Trump, who has repeatedly expressed support for fossil fuels, recently renewed his pledge to withdraw the U.S. from the Paris climate agreement if re-elected. He has also vowed to ramp up oil and gas exploration, telling supporters the U.S. will “drill, baby, drill.”

In response, environmental activists are pushing for stronger regulations on fossil fuel companies. Elena Polisano of Greenpeace said growing pressure on governments could lead to higher taxation on oil and gas profits, with funds directed towards climate disaster recovery efforts, as seen in Vermont and New York.

“Oil majors like BP are fuelling the climate crisis,” she said. “So it’s only fair to make polluters pay.”

As BP prepares to unveil its new strategy, the company faces increasing scrutiny over whether its pursuit of profit-driven fossil fuel expansion aligns with global efforts to combat climate change.

President Donald Trump has ordered an end to the production of the one-cent coin, commonly known as the penny, calling it a wasteful government expense. In a post on his Truth Social platform, Trump announced his directive to Treasury Secretary Scott Bessent, stating, “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”

The decision follows renewed scrutiny over the cost of minting pennies, sparked by a post last month from Elon Musk’s unofficial Department of Government Efficiency (Doge) on X (formerly Twitter). The debate over whether the penny should be discontinued has been ongoing for years, but previous efforts in Congress to eliminate it have failed.

The Cost of a Penny

According to the US Mint’s 2024 annual report, producing and distributing a single penny costs 3.69 cents—far more than its face value. Critics argue that this inefficiency wastes government funds and valuable resources, as pennies are made primarily from zinc and copper.

Supporters of the penny, however, argue that keeping it in circulation helps prevent price inflation by maintaining small denominations for cash transactions. Some also highlight its role in charitable fundraising, as many donation programs rely on spare change collections.

A Global Trend?

The US is not the first country to reconsider the use of low-value coins. Canada phased out its one-cent coin in 2012, citing high production costs and declining purchasing power. The UK, while not officially scrapping its 1p and 2p coins, has not minted new coins in 2024 due to a decline in cash usage.

Despite this shift toward cashless transactions, Trump’s decision marks a significant policy move, one that could reignite debates over the future of physical currency in the US. While it remains to be seen how businesses and consumers will respond, one thing is certain—the penny’s days are now numbered.