Efforts to agree on a call for a phase down of all fossil fuels at COP27 in Egypt gained a boost in this second week of the UN summit. The EU, which was pushing for even tougher “phase out” language on Monday morning, is set to join the UK and small island states in backing India’s push for the language. It will put pressure on the Egyptian COP27 presidency to include the wording in the first draft of its cover decision, expected early this week. The EU has been at the forefront of efforts to reach climate neutrality by 2050 but its role as a climate vanguard has been complicated at this summit by the energy crisis and the need to replace Russian gas supplies as quickly as possible. - John Ainger and Max Ramsay

What’s Happening

Iran Pressure | The EU announced fresh sanctions on Iran’s security forces as Tehran continues its crackdown against protesters and resumed air strikes on northern Iraq. The bloc has been expanding sanctions against Iran for the past month, citing police violence and the country’s sale of military drones to Russia for use in its war on Ukraine.

Grains Uncertainty | Russia’s grain-export pace is accelerating, just as Ukraine shipments are hit by uncertainty over whether a landmark Black Sea deal will be extended. Russia’s exports over past six weeks have jumped 42% from last year. Meanwhile, flows from Ukraine are slowing as the end of the original safe-corridor deal looms on Saturday.

German Nationalization | Germany moved to nationalize a second major gas company in two months as Berlin seeks to secure supplies for the winter and contain the financial shock from Russia’s squeeze on European energy. The takeover of SEFE, the former European trading and supply unit of Gazprom, was forced by concerns about a collapse that could set off a chain reaction through the economy.

Price Cap | Commission President Ursula von der Leyen told us on the sidelines of the G-20 in Bali that the EU is “ready to go” with an effort to impose a price cap on Russian oil. The summit kicked off today after a tense day of negotiations on a proposed communique to put to leaders. Diplomats agreed on a draft statement despite rifts over Russia given its invasion of Ukraine. 

In Case You Missed It

Trucker Strike | The Spanish government deployed more than 50,000 police to monitor the first day of a strike by truckers yesterday, amid concern the protest could snarl up supplies of food and goods. Transport Minister Raquel Sanchez said there hadn’t been major disruption by yesterday afternoon.  The protesters claim government measures to help them deal with rising costs have been insufficient.

ECB Action | The European Central Bank shouldn’t rule out raising interest rates to a level that puts the brakes on the economy, but it should first do careful analysis to determine if that’s warranted, according to Executive Board member Fabio Panetta. He warned excessive tightening may leave hard-to-heal scars. The ECB is a month away from deciding on its next rate increase.

Channel Deal | The UK and France have struck a deal to raise the number of border officials patrolling the beaches of northern France by 40% in an attempt to disrupt the flow of migrants across the Channel. France had resisted requests to allow Britain’s Border Force officers to join French patrols because of concerns over sovereignty, but has now agreed to embed UK officials under the new accord. 

Growth Controversy | Veldhoven, a tidy small town in the Netherlands’s industrial heartland, is at the forefront of a battle over the limits of growth. Tech giant ASML wants to expand its headquarters there, but residents and local officials are pushing back. Read the latest in our series on the New Geography of Technology.

Chart of the Day

London has lost another status symbol. It’s no longer home to Europe’s biggest stock market. The French exchange is now worth $2.823 trillion, narrowly edging out the UK at $2.821 trillion, according to data compiled by Bloomberg. In 2016, British stocks were collectively worth $1.5 trillion more than France. Paris’s stable of luxury companies are now riding a wave of optimism that Chinese shoppers will be eager to spend as Covid restrictions ease.   ​​

Today’s Agenda (All times CET.)

• 8:45 a.m. Commission President Von der Leyen takes part in a Partnership for Global Infrastructure and Investment event with US President Joe Biden and Indonesian President Joko Widodo at the G-20 in Bali
• 10 a.m. EU defense ministers meet in Brussels, with press conference at around 4:30 p.m.
• 1 p.m. NATO Secretary General Jens Stoltenberg gives a doorstep statement in Brussels while attending the meeting of defense ministers