The Climate & Wine Report #1 – September 2025
By Hayden Hodges
Photo: Tapada de Coelheiros
The Good…
EU cork supply to US avoids tariffs due to trans-Atlantic coalition
Amidst confusion and turbulence with global tariffs, positive news emerges as EU exported corks destined for the USA will be exempt from 15% tariffs. In a truly collaborative trans-Atlantic effort, representatives from both the EU, led by Portugal, leaders in the cork world including the National Cork Council and APCOR and the US worked together to ensure cork imports would be free of additional duties when shipped to US winemakers. Cork is critical to wine production globally and is used in 70% of American wineries – additionally, cork can’t be sourced from America’s neighbor’s Canada or Mexico and so the industry is particularly reliant on Portuguese cork materials. The materials that go into the making of wine, beyond the all-important grapes, can’t be overlooked and are a critical part of the supply chain. (as reported by https://www.winebusiness.com/news/article/307661)
Organic wine becoming the norm across Europe as Austria and Spain report positive growth
Organic wine continues to grow in Europe as Austria recently confirmed 25% of all wines are now certified organic while in Spain, 100% of Cava de Guarda Superior now meets certified organic standards. This push towards organic, and even many in Austria becoming biodynamic as well, signals a greater openness from wine makers to adopting sustainable practices, especially those that help maintain and promote biodiversity – an impressive feat for a cold-weather climate like Austria. In the much more friendly growing climate of Catalonia, organic Cava consumption has increased 15% showing consumer preference for this more sustainable and nature-friendly category of wine. (as reported by https://www.thedrinksbusiness.com/2025/09/cava-do-now-100-organic-for-cava-de-guarda-superior/ and https://harpers.co.uk/news/fullstory.php/aid/34629/Austria_92s_25_25_organic_milestone.html)
Australian states align to improve wine and spirits glass recycling schemes
New South Wales and South Australia are expanding their container deposit schemes to include larger format wine and spirit bottles to boost recycling efforts across Australia. The changes, set to take effect late-2027, follow similar positive moves from the rest of the country and are anticipated to greatly increase the amount of glass bottles recycled. Currently, this missed category of glass often gets co-mingled with standard rubbish and only 11% ends up getting reused for future glass production. The government is collaborating with wine and spirits producers to ensure a simple transition for maximum environmental impact. (as reported by https://winetitles.com.au/states-join-forces-to-expand-container-deposit-schemes-to-accept-wine-and-spirits/)
And the not so good…
Emission reduction targets shifted by Diageo in face of complex climate challenges
Spirits giant Diageo has greatly reduced its sustainability targets, particularly those related to emissions and recycled packaging content. While targets related to water are unchanged, Diageo now will aim to be Scope 1 and 2 emission net zero by 2040, instead of 2030, and cut their short-term goal to 50% reduction over the next 5 years. Additionally, Scope 3 value-chain emission reduction goals have been halved over the next 5 years. A smaller change is seen in increased recycled content goals with now 50% of products targeted instead of 60% by 2030. Diageo cites evolving regulatory landscapes and challenging multi-disciplinary innovative roadblocks as causes for these pushbacks. (as reported by https://procurementmag.com/news/why-has-diageo-slashed-so-many-key-sustainability-targets)
Drought-stricken Santorini struggles in the 2025 harvest, requiring significant innovations to ensure future
Santorini, the famous Greek island PDO world-renowned for their Assyrtiko, has struggled under the heat and drought this summer and expects to harvest only a few hundred tons of grapes – this is compared to yields usually in the thousands of tonnes. Water scarcity is a major issue as many of the vines, mostly trained using the basket method, are past their prime ages and the ancient plants struggle to get enough water to produce fruit. Some predict grape production could collapse by 2042. Innovations like wastewater treatment and atmosphere dehumidifiers are being trialed to alleviate the stress but the figure is still uncertain. (as reported by https://greekcitytimes.com/2025/04/22/santorini-wine-crisis/?amp ; https://www.vinetur.com/en/amp/2025082890663/santorini-faces-historic-collapse-in-grape-harvest-as-vineyards-shrink-and-prices-soar.html)
Chateau Lafleur breaks free of appellation status to leverage flexible growing options in everchanging climate
Pressures to adapt to a changing climate has led to top Pomerol estate, Chateau Lafleur, to shed both its Pomerol and Bordeaux AOCs and be listed as Vin de France. Climate change was cited as the reason for the major change and that the estate needs to be able to adapt and be flexible with growing requirements in order to survive. The current AOC restrictions limit allowed varieties, irrigation, and control planting density. Lafleur is the not the first in France to break from the norm and hopes to protect their future with agile and innovative practices. (as reported by https://www.decanter.com/wine-news/chateau-lafleur-to-withdraw-from-bordeaux-and-pomerol-appellations-563548/)
