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Mars on a Procurement Pathway to Net-Zero

Posted on by dishanth
Mars on a Procurement Pathway to Net-Zero

Mars has published its open-source action plan to accelerate the drive towards achieving Net Zero emissions, including a new target to cut carbon in half by 2030 across its full value chain. The strategy also involves investing US$1bn over the next three years alone to drive climate action

The strategy incorporates an understanding of how supplier engagement, supply chain and procurement impacts their environmental footprint, as 80% of it comes from their inputs such as raw materials, packaging and logistics.

“The carbon footprint of our entire supply chain from farming through to the end of life of our packaging and everything in between is the same as that of a small country – Finland has almost exactly the same footprint,” explains Barry Parkin the Chief Procurement and Sustainability Officer at Mars Inc. “When we look at where our footprint was ten years ago, 70% or more of it is embedded in the goods or services we buy. So, procurement is therefore absolutely critical.”

This means the role of procurement, supply chain, and supplier engagement is integral to the company reaching their ambitious sustainability targets, and Parkin is acutely aware that means it is essential for them to do things differently. “Our job is to re-imagine and re-design supply chains so that they have a dramatically lower carbon footprint,” he says. “To put it another way, unless we change what we buy, or where we buy it or how we buy it we are not going to really change our carbon footprint. ”

Their roadmap involves removing approximately 15 million metric tons by 2030 and then another 15 million metric tons by 2050 when they reach net zero.  Since 2015 Mars have already reduced emissions by 8%, whilst growing the business by 60%, showing that it is possible to decouple emissions from growth and success of a business.

 

Supplier relationships 

As for any major organisation trying to address their sustainability strategy, it is impossible for Mars to make significant progress with their carbon footprint without the help and buy-in from their enormous supply networks.

“As a global company, we rely on suppliers across our value chain as essential partners in our journey to reach net zero,” says Parkin.  “Like most companies, addressing our Scope 3 emissions is challenging because of their indirect nature and our lack of direct control or visibility. Only by working with our Tier 1 suppliers can we make progress with them on their own emissions and on their upstream emissions with our Tier 2 suppliers and beyond.”

Mars was a founding member of the Supplier Leadership on Climate Transition coalition, that is a dedicated body for instigating climate action through industry-wide supply chains.  This allows companies like Mars to use their scale and influence to guide, mentor and train suppliers with emissions strategies and also celebrate their best practice.

This reflects the collaborative approach Mars is trying to adopt with all their stakeholders to reach their climate targets.  “Suppliers that demonstrate substantial progress in reducing their environmental footprint are recognised and rewarded with additional business,” explains Parkin. “This metrics-driven strategy ensures that our suppliers have a significant role in our journey towards sustainability, aligning their efforts with our commitment to addressing the climate crisis.”

To achieve this relationship, Mars sets clear expectations for suppliers regarding emissions reduction, renewable energy adoption, and sustainable sourcing. They then incorporate those climate performance metrics into some of their biggest supplier’s evaluation criteria.

 

Recipe optimisation 

For one of the global leaders in food products, pet supplies and confectionery, they are also able to leverage product design and ingredients into their net-zero strategy.  Mars describes that as ‘optimising recipes’ and procurement is again integral in making that aspect of the plan a success.

“Our procurement team actively collaborates with suppliers to identify and source new ingredients in a way which lowers emissions and advances our sustainability goals,” says Parkin. “This collaborative approach helps improve our supply chain sustainability performance, including the procurement of ingredients that have a reduced carbon footprint.”

This approach of working closely with the suppliers who provide the ingredients, allows Mars to enhance their product offerings while at the same time finding new ways to reduce the emissions associated with the recipes.

 

Buying-in to the road map 

Parkin is praising the positive reaction from their suppliers to the Net Zero Roadmap, but that is also because many of those partners have been on a sustainability journey with the company for a number of years, since setting out their first scope 3 targets for their full value chain back in 2017.

“Suppliers have expressed their appreciation for the transparency and specificity of our roadmap,” explains Parkin.  “It has enabled them to better understand our expectations and how their contributions fit into the broader picture of achieving net zero emissions. The roadmap’s emphasis on collaboration and collective responsibility has resonated with our suppliers, fostering a spirit of partnership in our shared journey towards sustainability.”

The partnership allows procurement partners to take proactive steps in their organisations and strategies to address their emissions, and be part of a collective responsibility to finding both a sustainable future and a productive business relationship.

Aside from the influence such an ambitious net-zero strategy has on the culture and direction of a company like Mars Inc, it also creates a larger impression on other companies in their business ecosystem as other brands and businesses look to follow their lead.

Barry Parkin is aware of the value of that influence, and how their procurement and supply chain can help lead others to greater sustainable achievements.

“Global companies like Mars play an important role in shaping sustainability standards and advancing climate action at scale,” he explains. “Our influence extends across the globe, allowing us to inspire change on a wider scale. When companies set high sustainability standards, it encourages others in their industries to follow suit.”

He adds: “Companies like Mars have the resources, expertise, and innovation capabilities needed to pioneer sustainable practices and technologies.

“We can invest significantly in research and development, pilot groundbreaking initiatives, and implement sustainable solutions beyond the reach of smaller organisations. This proactive approach not only benefits the environment but also builds a positive reputation with environmentally conscious consumers and attracts like-minded partners.”

If a globally recognised brand like Mars can leverage their sprawling supply and procurement network for better environmental outcomes, it can only help to bring others on the same journey. “This ripple effect fosters industry-wide transformation, promoting a more sustainable future,” finishes Parkin. “If a business such as Mars can halve it’s footprint by 2030, that matters.”

 

 

 

Source   Sustainability

Sahara Circular Gardens Stop Desertification, Provide Food Security

Posted on by dishanth
Sahara Circular Gardens Stop Desertification, Provide Food Security

In the vast expanse of the Sahara Desert, a transformation is taking root—quite literally. Amidst the golden dunes and arid landscapes, Sahara circular gardens are emerging as oases of hope, pointing to a sustainable way forward in the face of increasing desertification. These meticulously designed green patches are symbols of human ingenuity and active combatants against the degrading soil and challenging climatic conditions of one of the world’s most unforgiving terrains.

Desertification refers to the process where previously fertile land degrades into desert. While natural climate fluctuations play a role, human activities—such as unsustainable farming practices and deforestation—have significantly accelerated the process. The Sahara, already the third largest desert globally, continues to expand, threatening local ecosystems and the livelihoods of millions.

This environmental phenomenon doesn’t just result in a loss of usable land. It disrupts local ecosystems, diminishes water resources, reduces agricultural productivity, and can lead to increased regional conflicts over dwindling resources.

Enter the circular gardens—concentric circles of vegetation that stand defiantly against the vastness of the desert. Here’s a breakdown of why and how Sahara circular gardens represent a beacon of hope in various ways.

Efficiency is paramount in regions like Senegal, where water is more valuable than gold. The design of Sahara circular gardens allows for a central water source, distributing the precious resource evenly to all plants. This hub-and-spoke model ensures that every drop is utilized to its maximum potential. The gardens, known locally as tolou keur, are the most recent incarnation of The Great Green Wall project.

These gardens are more than just a sum of their parts. Together, the plants work in harmony to create a relatively cooler micro-environment that maintains a higher humidity level than the surrounding desert. This microclimate is conducive to plant growth and offers a small reprieve from the otherwise harsh conditions.

The Sahara circular gardens’ genius lies in combining traditional desert farming techniques with modern agricultural knowledge. Local communities have long recognized the value of growing in concentric patterns, but today’s farmers are enhancing these methods with contemporary technology and insights.

Against the monochromatic backdrop of the desert, the Sahara circular gardens are vibrant hubs of life. They host a range of plant species, attracting essential pollinators and beneficial insects. This biodiverse setup supports the garden’s health and strengthens its resilience against pests and diseases.

Beyond the environmental benefits, these gardens have profound socio-economic implications. They provide local communities with a sustainable source of food and income. In an environment as challenging as the Sahara, the success of these agricultural initiatives can make a considerable difference to the economic well-being of the local populace.

Every plant in these gardens plays a role in healing the soil. As plants grow, decay, and get replaced, they return essential organic matter to the ground. Over time, this continuous cycle can restore the soil’s structure and fertility, combating the effects of desertification.

The gardens show that sustainable farming is possible even in adverse conditions. With carefully chosen plants, including those that naturally enrich the soil, these gardens can thrive with minimal external intervention.

The emergence of Sahara circular gardens is a testament to human adaptability and resilience. However, their proliferation also highlights the urgency of our environmental challenges. While these gardens offer localized solutions, they also underscore the need for global action against climate change and land degradation.

Researchers, environmentalists, and local farmers are keenly studying the potential and limitations of these gardens. As knowledge grows, techniques are refined, ensuring these green oases become even more effective in their mission.

The Sahara circular gardens are more than just innovative agricultural projects. They symbolize hope, resilience, and the indomitable human spirit. In the face of global challenges, they remind us that with ingenuity and collaboration, solutions can be found—even in the most unexpected places.

 

 

 

 

Source   Happy Eco News

6 Types of Cool Roof Technology

Posted on by dishanth
6 Types of Cool Roof Technology

Cool Roof Technology: a Low-cost Way to Reduce Energy Consumption and Carbon Emissions

Want a huge decrease in carbon emissions, a reduction in summertime cooling costs and a more efficient home? Cool roof technology can do all that. Cool roof technology has the potential to eliminate billions of tons of carbon dioxide at a very low cost.

If you’ve ever spent time on a black asphalt roof or up in an attic during the heat of summer, you understand how much heat energy is added to a home during summer months. This is heat that many of us pay to remove by using air conditioners and other means.

But what if, just by a better design and choice of materials, we could have a far cooler house that uses far less electricity each month? That is what people in the Mediterranean and other hot climates have been doing for centuries. White paint and chimney-style ventilation that distributes cool air from lower areas of the house are low-tech examples of cool roof technology that works.

Modern cool roof technology is similar. Most are just like regular roofs but are designed to reflect sunlight and shed heat, to keep buildings cooler in the summer. According to a study by the National Renewable Energy Laboratory (NREL), cool roof technology could reduce energy consumption for cooling by up to 20%. The study also found that energy savings from cool roof technology could eliminate up to 1.4 billion tons of carbon dioxide emissions annually in the United States. The equivalent of taking 300 million cars off the road!

According to Lawrence Berkeley National Laboratory, if all North American cities with populations over 1 million people adopted cool roof technology, air conditioner use would fall by one-third.

The Human Cost of Heat

The savings aren’t just in terms of money and carbon emissions. Climate change has disproportionately increased temperatures in urban areas. An urban landscape largely covered in asphalt, concrete and black roofing materials is far hotter than one covered in greenery or reflective materials, a phenomenon known as the urban heat island effect.

The urban heat island effect is the phenomenon of cities being warmer than surrounding rural areas. This is because cities have more dark surfaces, such as black roofs, which absorb sunlight and heat up the air. The heated air then rises, creating a convection current that draws in cooler air from surrounding areas. This process can lead to increased temperatures in cities, which can have a number of negative consequences, such as increased energy consumption for cooling, decreased air quality, and increased heat-related illnesses and deaths.

Black roofs also radiate energy directly into the atmosphere. This energy is then absorbed by clouds and trapped by the greenhouse effect, further contributing to global warming.

Type Depends on Location Climate

There are a number of different types of cool roof technology available, including:

  • Reflective roofs: Reflective roofs are the most common type of cool roof. They are made of materials that reflect sunlight, such as white or light-colored tiles, metal roofs, or paints. Reflective roofs can reflect up to 90% of the sun’s heat, which can help to keep buildings cooler in the summer.
  • Evaporative roofs: Evaporative roofs are made of materials that allow water to evaporate, such as clay tiles or metal roofs with a water-absorbing coating. As the water evaporates, it cools the roof and the building below. Evaporative roofs can be effective in hot, dry climates.
  • Phase-change materials: Phase-change materials are materials that change their state from solid to liquid and vice versa. When these materials change phase, they absorb or release heat. Phase-change materials can be used in cool roofs to store heat during the day and release it at night. This can help to keep buildings cooler in the summer and warmer in the winter.
  • Cooling paints: Cooling paints are paints that are applied to roofs to make them more reflective and to help them cool down. Cooling paints are effective in hot, sunny climates and typically contain titanium dioxide, a highly reflective pigment.
  • Cooling granules: Cooling granules are small, reflective beads applied to roofing materials like shingles. The granules reflect sunlight and help to keep the roof cooler. Like cooling paints, cooling granules are most effective in hot, sunny climates.

 

Green Roofs are Cool Roofs

Another type of cool roof technology is the green roof. Green roofs are made of a waterproof membrane with a layer of soil and vegetation on top that helps to insulate the roof and reflect sunlight. Green roofs can reflect up to 70% of the sun’s heat, which can help to keep buildings cooler in the summer. In some cases, they can provide vegetable gardens or just a nice place to sit and enjoy the feeling of being surrounded by nature – while in the city.

Green roofs also have the effect of providing bird and pollinator habitat as well as reducing stormwater runoff. Because of the benefits, many cities are now mandating the installation of green roofs on new construction. New York, San Francisco, Chicago, Seattle and Portland all require green roofs on new construction on buildings with roof areas over a specific set size. That said, retrofitting an existing building is often cost prohibitive due to the structural requirements to support the additional weight.

Cool roof technology is a promising way to reduce greenhouse gas emissions and improve the energy efficiency of buildings. As the technology continues to develop, the potential for cool roofs to reduce carbon dioxide emissions will likely increase.

This is an easy way to make big gains in carbon reductions, saving homeowners and businesses money. Something we can all get behind.

 

 

 

 

Source Happy Eco News

Crocs pushes net-zero target back from 2030 to 2040

Posted on by dishanth
Crocs pushes net-zero target back from 2030 to 2040

Crocs, which is based in the US and sells shoes globally, posted the updated climate in its latest environmental, social and governance (ESG) report late last week.

The report states that Crocs’ initial commitment to net-zero across by 2030, made in 2021, was “neither fast nor vast enough”.

Nonetheless, it has amended the commitment to net-zero across all emissions scopes by 2040. The report states that, when the initial 2030 goal was announced, Crocs had not completed its acquisition of HEYDUDE nor had it completed a comprehensive baseline of its greenhouse gas emissions.

The acquisition pushed Crocs’ baseline emissions up and the baselining activity revealed a higher-than-expected starting level of emissions.

Crocs estimated its value chain emissions in 2021 at 538,037 tonnes of CO2e. The estimate for 2022 is 45.5% higher at 782,774 tonnes of CO2e. At least 193,000 tonnes of these 2022 emissions are attributable to the HEYDUDE acquisition.

Crocs’ report states that the new 2040 goal is “still ambitious” but “more credible and realistic”.

A commitment to halve the carbon footprint of each pair of Crocs Classic Clogs between 2021 and 2030 has been retained, and extended to the HEYDUDE ‘Wendy’ and ‘Wally’ models. Increasing the share of bio-based content within shoes to 50% by 2030 will play a key role in reducing associated carbon. At present, the proportion is just 2.2%. An interim target has been set to reach 20% by the end of 2023.

Some commentators have questioned whether this approach is enough, and whether the brand should, instead, be looking at selling fewer pairs of shoes that last for longer. Crocs solar some 115.6 million pairs of shoes in 2022, up from 103 million in 2021.

Circular economy thought-leader Paul Foulkes-Arellano wrote on LinkedIn of a “lack of genuine commitment” from the footwear sector on climate and circularity, followed by “backtracking”.

 

 

 

 

Source edie

The Animals That Can Help us Reach our Climate Goals

Posted on by dishanth
The Animals That Can Help us Reach our Climate Goals

As humans try to fix the problems of climate change that they inevitably cause, they may be overlooking a very helpful, natural solution that could help restore ecosystems and capture and store carbon dioxide. Researchers from the Yale School of the Environment have found that robust populations of nine animal species could improve nature capture and carbon dioxide sequestration within ecosystems. They estimated that increasing the populations of African forest elephants, American bison, fish, gray wolves, musk oxen, sea otters, sharks, whales and wildebeest, among others, could lead to the capture of 6.41 gigatons of carbon dioxide annually. About 95 percent of the amount needed to be removed to ensure global warming remains below 1.5 degrees Celsius, a threshold set by the Paris Agreement.

The researchers found that in many cases where thriving populations of certain species were foraging, burrowing, and trampling, the ecosystem’s carbon storage increased by as much as 250 percent. This was a direct result of the dispersal of seeds and the growth of carbon-sequestering trees and plants. In Africa, every increase of 100 000 animals can increase carbon sequestered by 15 percent. Wildebeests consume carbon in the grasses they eat and then excrete it in their dung. The carbon is integrated into the soil by insects. Wildebeests also manage the grasses and help reduce the risk of wildfires.

Whales feed in deep water and release nutrients in their waste at shallower depths. This stimulates phytoplankton production, which is essential for storing carbon in the ocean. In the Amazon rainforests, tapirs are known to frequent areas that need reseeding. With a diet of herbs, shrubs, and leaves rich in nutrients, these animals leave trails of seeds in their waste and have been convenient in areas where lands have been burned.

For these solutions to be successful, the researchers recommend strengthening current animal recovery efforts. They also recommend reassessing the legislation, policies and funding to aid the conservation of these animals, many of whose numbers have been reduced by human intervention. They found that as animals become extinct in an ecosystem, their absence could transform habitats from carbon sinks to carbon sources – this makes protecting these species extremely important They also stress that it will be important to work closely with local communities to address the complex social issues that can affect conservation efforts This would involve including the local community into decision-making and governance processes and taking into account their knowledge, values and attitudes toward rewilded species.

This is just the beginning of important research that could help us reduce the impacts of climate change with a very natural solution. Protecting these animals, among many others, and their habitats can help shorten the time needed o reach our climate goals and help us live healthier lives for our populations and the planet.

 

 

 

 

Source Happy Eco News

Can Renewables Become As Profitable As Oil And Gas?

Posted on by dishanth
Can Renewables Become As Profitable As Oil And Gas?

Here’s the question for oil industry investors. Can oil companies scale up clean energy enterprises to replace business lost from a decline in fossil fuel revenues? Some of the oil companies put up a brave front as they boast of their decarbonization plans. Others ignore the question. But at the end of the day— and this is the takeaway— we don’t think they will replace lost fossil related income by massively investing in windmills and solar power. Here’s why. It’s a simple matter of risk and return. Investors accept lower returns when they make low risk investments (regulated utilities for example). Except for nuclear power, non-fossil fuel investments are lower in risk than fossil fuel investments. Energy exploration by its nature entails risk of financial loss. There is no such thing as a dry hole in the wind or solar industries. That is why renewable industries can attract new capital while offering investors steady but lower returns.

If oil managements do decide to enter the renewables business in a big way, as opposed to mere greenwashing, they may have to accept a lower rate of profitability. If they don’t, they will have a hard time obtaining business.

The inherently lower business risk of renewables distinguishes it from the oil business. Renewables do not require massive investments taking decades to fully develop in inhospitable and unfriendly places like the ocean floor. Their projects are bankable as soon as they have contracts signed. They do not compete against state controlled entities with few capital or environmental constraints. They can contract for a steady flow of revenues and pay regular dividends. Environmental accidents do not have multi-billion dollar consequences. Okay, weather can affect performance, but on balance performance averages out. In brief, renewable energy projects can be characterized as relatively small, or modular, with short duration of construction (planning takes longer), predictable revenues with limited foreign exposure. Low risk, low return. This profile doesn’t have the investment attributes of the oil business at all.

 

Maybe, though, the oil industry could find a suitable new opportunity in nuclear energy. From our perspective some of its investment attributes are similar: projects with long lead times, large concentration of capital in one project, relatively low risk of catastrophic accident but high risk that any accident will be really bad, ongoing need for negotiation with and cooperation from the government authorities. Big oil’s scale gives it an edge. New nuclear projects are too big nowadays for most energy companies.

And unlike renewables, if the nuclear builder negotiates aggressively it can extract an appropriately high return that reflects the risk. New nuclear construction is one business that most resembles the oil industry in terms of risk, possible return and scale. The obvious catch is that not many for-profit businesses want to get involved with new nuclear construction and operation for good reasons, all of which are well known to our readers.

But with better construction management, research to develop a new generation of reactors and permanent waste storage, who knows? A new generation of nuclear power plants might emerge just when the oil companies need to find big replacements for lost income. This is still a possibility. But if we assume that commercialization of new nuclear technology is at least a decade away that still leaves a big hole in prospective capital budgets. What to do in the meantime other than drill for oil?

In short, we don’t expect the oil industry to grow in any meaningful way with wind turbines and large solar arrays. The demand for capital in the renewable industry is high but the returns may not be high enough for oil investors.

Maybe the oil industry has confused its end market with its business strengths. It seems to see itself as purveyor of energy on a mass scale. Okay, but that market will become crowded with purveyors of new energy products who work for less. Perhaps, instead, the oil industry’s strength is not its customer base but rather its skill as a financier, developer and operator of risky resources on a massive scale, akin to the giant mining and trading combines, but with more technological skill.

Oil and electricity are both commodities but with very different margin structures. Perhaps the oil industry would be better served by investing in potentially high margin commodity businesses like cobalt or rare earth metals, for example, without which no batteries can be made. Or, it could invest in resources or capital intensive processes that will be required for decarbonization.

In short, replace oil profits with windmill and solar profits? Other people can do it as well. Oil companies will need to do something big, and maybe as daring as drilling for oil in the old days. How about, for instance, a process to remove carbon dioxide from the air and turning it into chemicals and fuels on a vast scale? They need to start thinking on a bigger scale. Otherwise, why bother?

 

 

By Leonard Hyman and William Tilles for Oilprice.com

Source Oilprice.com

2020: a dismal year for coal power

Posted on by dishanth
2020: a dismal year for coal power

Long seen as a critical emerging market for coal power, South and Southeast Asian countries radically reconsidered their commitment to it last year in the face of new economic realities following the spread of coronavirus.

According to a new analysis from Global Energy Monitor (GEM), four of the region’s largest emerging economies— Bangladesh, Indonesia, the Philippines and Vietnam—may have cancelled nearly 45 gigawatts (GW) of coal power in 2020, equivalent to the total installed capacity of Germany.

Prospects for a revival of coal development plans in 2021 have also been limited by announcements from major coal financiers in South Korea and Japan of new restrictions on coal power investments beyond their borders.

Analysts have for years warned that coal power expansion plans in several countries in South and Southeast Asia risked overcapacity in the sector, wasted capital and asset stranding—not to mention greenhouse gas emissions and environmental costs. The year 2020 may prove to be when the regions’ coal power expansion plans were finally re-evaluated in the face of the pressing need for climate action and the reality of declining low-carbon technology costs.

 

Falling one by one

Perhaps the most dramatic development in Asia’s energy sector last year was the summer flurry of coal power plant cancellations and postponements. It started in Bangladesh in June when Nasrul Hamid, Minister for Power, Energy and Mineral Resources, unexpectedly announced that the government was planning to “review” all but three of the country’s under-development coal plants, capping coal power capacity at 5GW. Suddenly, planned coal plants totalling 23GW were in doubt. By November, Bangladeshi media were reporting that the plan to scrap most of the country’s planned coal was awaiting approval from the prime minister.

A month later, details of Vietnam’s draft Power Development Plan, which is due to come into force next year, became public. The draft plan proposed cancelling seven coal plants and postponing six others until the 2030s, by which point it is highly unlikely they will go ahead. The 13 plants represent almost half of Vietnam’s planned coal power development.

Then, in November, the Philippines’ Department of Energy proposed a moratorium on new coal power plants which, according to analysis by GEM, could lead to 9.6GW of cancellations. And, in December, on the fifth anniversary of the Paris Agreement, Pakistan’s Imran Khan announced that the country would not construct any new coal power plants, though the real-world impact of this grandiose announcement has been questioned.

Adding in proposed project cancellations in Indonesia, GEM estimates that the coal power pipeline in South and Southeast Asia’s four major emerging economies may have dropped by as much as 62GW in 2020. That leaves just 25GW under development, an 80 per cent decline from just five years ago. Exact figures for cancelled and remaining plants will depend on how last year’s flurry of announcements is manifested in specific policies.

 

Source: Global Energy Monitor (GEM)

 

The financial drought continues

One contributing factor to the wave of coal power cancellations and moratoriums around South and Southeast Asia last year was the decline in finance. Banks faced growing public pressure to identify and manage the climate and biodiversity risks associated with coal power development and respond to the climate crisis by committing resources to renewables. A recent report from Greenpeace Japan estimates that Southeast Asia’s renewable energy market could be worth up to US$205 billion over the next 10 years.

In Japan, 2020 saw banks Mizuho, Sumitomo Mitsui, and Mitsubishi UFJ Financial Group announce restrictions on coal power investments. In Korea, state financial institutions Korea Export-Import Bank and KSURE both stepped away from involvement in coal power projects, while Samsung corporation and the state-owned Korea Electric Power Corporation pledged no further investments in overseas coal projects.

The Japanese government also committed “in principle” to limit investments in overseas coal power plants, declaring that such investments would be contingent on the use of ultra-supercritical technology and the host country having a decarbonisation strategy. There have also been strong moves within the Korean parliament this year to ban Korean financing of coal power overseas, with progressive MPs from the ruling Democratic Party proposing related bills on four occasions.

The wave of announcements comes on the back of Singapore’s three major banks announcing an end to coal power financing in 2019. This leaves Chinese banks increasingly the “lender of last resort” to coal power projects around Asia. According to the Global Coal Public Finance Tracker, Chinese banks have provided finance to a total of 53GW worth of under construction or currently operating coal power, far more than the 21GW propped up by the second biggest financier in overseas coal, Japanese banks.

 

Source: Global coal public finance tracker • Note: The data covers all projects under development since 2013, including currently proposed projects, which have received or are likely to receive public finance.

 

All eyes on China’s policymakers

But movement may be on the horizon in China too. At the beginning of December, a report released by the BRI International Green Development Coalition and supported by the Ministry of Ecology and Environment detailed how the Chinese government could establish a “classification mechanism” of overseas project types based on their impacts on local pollution, climate change and biodiversity. The mechanism labels coal power and coal mining as “red”, meaning that involvement of Chinese actors in such projects would be off-limits. Eyes are now on policymakers to adopt the report’s suggestions.

The growing number of national pledges to reach carbon net-zero has arguably given impetus toward “greening” the Belt and Road Initiative. Though China’s new 2060 net-zero goal is targeted at the domestic economy, numerous voices are calling for the expansion of the development target to overseas investments.

While these dizzying developments in Asian energy are certainly welcome news, “king coal” is still clinging on in several places. Countries such as Vietnam and Indonesia, despite their large-scale cancellations, are still pursuing the construction of significant quantities of coal power, while Cambodia has announced new coal power projects, backed by Chinese finance and construction. Meanwhile, despite its welcome net-zero announcement, China is still building new coal-fired power plants at an alarming rate at home.

Asia’s journey away from coal will be a long one but in 2020 many countries at least picked up the pace.

 

 

By Tony Baxter, China Dialogue

Source Eco Business

A cool new energy-efficiency policy

Posted on by dishanth
A cool new energy-efficiency policy

A single change in our approach to energy efficiency can enable more people around the world to stay cool, benefit consumers, and flatten the curve on cooling-related energy demand and emissions.

Air conditioning (AC) may be cooling us, but it’s cooking our planet.

Countries around the world have experienced scorching temperatures this summer. This August was the second hottest on record. Global warming and more intense summer heat waves, coupled with increased urbanisation and rising incomes, are driving a dramatic increase in demand for AC units.

The International Energy Agency (IEA) predicts that the number of ACs in operation globally will increase from 1.6 billion today to 5.6 billion by 2050. Over the next 30 years, ten air conditioners will be sold every second.

Air conditioners contribute significantly to the greenhouse-gas emissions fueling climate change, both directly, owing to the hydrofluorocarbon (HFC)-based refrigerants they contain, and indirectly, given the energy they consume.

 

Over the next 30 years, ten air conditioners will be sold every second.

 

A recent report by the IEA and the United Nations Environment Program is the latest to highlight the threat, describing it as “one of the most critical and often neglected climate and development issues of our time.”

The 2016 Kigali Amendment to the Montreal Protocol on Substances that Destroy the Ozone Layer aims to reduce HFC production and consumption by over 80 per cent by 2047. If implemented, this could avoid 0.4°C of global warming this century. But while the Kigali Amendment provides a pathway to address refrigerants, the world must now tackle the problem of air conditioners’ energy intensity.

Most AC units sold today are 2-3 times less efficient than the best commercially available products. This is largely because consumers buy the lowest-priced units, with little or no understanding of the lifecycle cost implications of their purchase. The IEA estimates that widely diffusing the most efficient air conditioners on the market today could cut cooling energy demand by half.

While the AC industry needs to continue making units more efficient, we can, and must, take steps to drive the adoption of the best products already available. That means flipping the way we address the efficiency issue, which in turn will require policymakers and the industry to come together and show bold leadership.

One way to boost energy efficiency is through policy intervention, specifically regarding minimum energy-performance standards (MEPS). Currently, MEPS are set just above the level of the worst-performing AC products, in order to keep them out of the market and provide some protection to consumers.

But with market growth continuing to accelerate, policymakers should instead set MEPS with reference to the best commercially available products – meaning that the MEPS would be just below the technology ceiling, rather than just above the technology floor.

This significant change would not only protect consumers; it would also considerably reduce the lifecycle costs of owning and operating air conditioners. At the same time, it would still allow sufficient space for product competition, thereby bringing down the purchase price of more efficient units.

Such a policy could emulate and build on Japan’s Top Runner program, launched in 1999, which effectively advances the country’s AC market while delivering energy savings and reducing lifecycle costs. The scheme encourages consumers to purchase the best-performing available units through a labeling program, which in turn increases economies of scale and lowers costs. And by demanding more efficient AC technologies from the market, Top Runner also bolsters investor confidence.

Targeting maximum efficiency in this way worldwide would decrease the lifecycle cost for consumers of owning an AC unit by a factor of two to three and eliminate the need for over 1,300 gigawatts of electricity generation capacity globally. It would also avoid 157-345 gigatons of carbon dioxide emissions over the next four decades.

Establishing policies based upon the best commercially available AC products rather than the most commonly sold ones would thus avoid emissions, reduce government spending on power generation, and save consumers money, all while continuing to incentivise the market to develop better performing products.

Better yet, such a policy shift would prepare the market for AC products with even greater efficiency potential that are already on the horizon. In 2018, an international coalition launched the Global Cooling Prize to identify a residential room air conditioner that uses dramatically less energy and contains refrigerants with little to no effect on the climate.

Eight teams have developed technologies that potentially could have five times less climate impact than standard AC units on the market today. Following testing this fall, one winner will be awarded a prize of $1 million in March 2021 for their innovative cooling solution.

Scaling such a cooling technology globally could save consumers $1 trillion in operational costs in the next 30 years, and avoid up to 0.5°C of warming by the end of the century. And that includes only the residential sector.

A single change in our approach to energy efficiency can enable more people around the world to stay cool, benefit consumers, and flatten the curve on cooling-related energy demand and emissions. If we want climate-friendly AC, we need to leap toward the technology ceiling.

Iain Campbell is a senior fellow at the Rocky Mountain Institute. Caroline Winslow is an associate with the Buildings Team at the Rocky Mountain Institute.

 

 

By Iain Campbell and Caroline Winslow

Source: Eco-Business

Sydney pitches for green hydrogen leadership

Posted on by dishanth
Sydney pitches for green hydrogen leadership

The New South Wales capital, Sydney, will host the largest renewable gas trial in Australia after the conservative Liberal-National state government approved NSW’s first hydrogen gas facility.

The Western Sydney Green Gas Project was given so-called fast-track approval status as part of NSW’s post-coronavirus recovery just three weeks ago, and now has a formal sign-off.

NSW Planning Minister Rob Stokes told The Sydney Morning Herald newspaper the project, backed by Jemena and the Australian Renewable Energy Agency (ARENA), would serves as a prototype for future green hydrogen projects.

“It will operate as a trial over five years to demonstrate the commercial feasibility of power-to-gas technology, providing NSW with an opportunity to revolutionise the fuel and gas industry and create opportunities for low emissions technologies and jobs,” Mr Stokes said.

 

NSW Planning Minister Rob Stokes | Source: NSW Government

 

The $15 million-plus project will convert mains tap water and grid electricity from renewable sources into hydrogen gas, hence the “green hydrogen” tag.

The hydrogen gas will then be injected into the gas distribution network to supply homes, power buses and generate electricity.

Michael Pintabona, a Jemena spokesman, said the company welcomed the announcement as “a crucial next step towards bringing renewable hydrogen gas to the New South Wales gas network”.

“At this challenging time, government support for projects like this is pivotal and will help bring new jobs and economic activity to Western Sydney,” he said.

Construction, including the installation of NSW’s first electrolyser, which uses electricity to split water into hydrogen and oxygen, will start within three months and be completed by early next year.

NSW Energy Minister Matt Kean told The Sydney Morning Herald the project would help position NSW as a national leader in green gas supply and storage projects and assist the state’s transition to a low-greenhouse gas energy system.

“It will also help us reach our ambitious aspiration of injecting 10 per cent hydrogen into our gas network by 2030,” Mr Kean said.

 

NSW Energy Minister Matt Kean | Source: Monthly Chronicle

 

The state government had drawn some criticism for its plan to accelerate a range of coal or methane gas-related projects, some of which were unlikely to generate many near-term jobs or fresh investment.

While hydrogen is expected to play a major role in the future, the source of the energy to make it could be controversial.

So-called blue hydrogen could be made using gas or coal although the related emissions generated would make it less attractive to importers seeking to wean themselves off fossil fuels to combat climate change.

 

 

By  David Twomey
Source Eco News

Proposed Indonesian coal power plant not financially viable, study finds

Posted on by dishanth
Proposed Indonesian coal power plant not financially viable, study finds

Green groups have long criticised the Jawa 9 & 10 coal power project over its devastating impacts on public health and the environment. Now, a study has revealed the project would also be unprofitable for its investors.

The 2,000-megawatt Jawa 9 & 10 coal-fired power project planned to be built near the Indonesian capital city Jakarta would result in significant losses for investors if it goes through, a new pre-feasibility study released on Thursday (18 June) has revealed.

The analysis conducted by Korea Development Institute (KDI), an autonomous policy-oriented research organisation, shows the present value of cash flows pumped into the power project would exceed that of inbound cash flows by US$43.58 million over the station’s lifetime.

Almost three-quarters of the project volume is financed through loans provided by lenders such as Singapore bank DBS, Siemens Bank, Korean public banks, as well as Malaysian and Indonesian banks, which include Maybank, CIMB, Bank Negara Indonesia, Exim Bank of Indonesia and Bank Mandiri, among others.

However, South Korean utility Korea Electric Power Corporation (Kepco) is the only foreign firm backing the project that will hold a share of ownership in the plant. It is poised to lose US$7.08 million in equity investments, according to the study, which was obtained by Seoul-based non-profit Solutions for our Climate.

Other equity investors associated with the venture include Jakarta-based power and petrochemical firm Barito Pacific and Indonesia Power, a subsidiary of Indonesia’s state utility Perusahaan Listrik Negara (PLN), which provides the land for the station.

Solutions for our Climate director Youn Sejong said while loan investors were less at risk because their investment would be paid off first, the fact that the project itself was valued negative should still be a wakeup call for the banks supporting it.

“Investors backing the project should pull out given the estimated unprofitability. Because the construction has not commenced, this is the best time to withdraw from the project with no sunk cost involved,” he told Eco-Business.

The project, which is to add two power plant units to the Suralaya coal-fired power station in Cilegon, a city in Indonesia’s Banten province, is expected to be in operation from 2024. The new plant units will use ultra-supercritical technology to enable higher efficiencies and lower emissions.

Besides the Jawa project, Kepco is planning to acquire a share in the planned Vung Ang 2 project in Ha Tinh province, Vietnam. Its stake in the venture would see the company build two 600-megawatt coal plants carrying a price tag of US$2.24 billion.

This is despite a recent estimate by the KDI that the net value of the Vung Ang 2 project stands at negative $158 million, with Kepco’s planned investment valued at negative $80 million.

Around the globe, pressure is mounting on governments and companies to drop coal, the world’s single-biggest contributor to man-made global warming, amid increasingly dire warnings of climate change.

Both the Jawa and the Vung Ang ventures have received heavy criticism from environmental activists and health experts in recent years, who have urged the corporations backing them to recognise the reputational, legal and environmental risks involved in the investments.

A 2019 report by environmental campaigners Greenpeace that modelled the health impacts of the Jawa project concluded the station would cause 4,700 premature deaths over its lifetime.

The new assessment comes as the Korean government puts together its Green New Deal package, a collection of sweeping policies geared towards ending South Korea’s contribution to climate change. The move was announced as part of the Liberal Party of Korea’s election manifesto earlier this year.

Following Moon Jae-in’s recent landslide victory, the government is expected to implement a carbon tax, foster investment in clean energy, and phase out domestic as well as overseas coal power financing.

Last month, the world’s top asset manager BlackRock, which owns shares in Kepco, raised concerns over several coal projects the utility firm is involved in.

According to the KDI, Kepco’s financial plan for the Jawa project takes an overly optimistic view of the expected amount of power sales and potential power transmission rates.

The firm has also likely underestimated engineering, procurement and construction (EPC) costs and not taken into account the financial difficulties currently facing Korean company Doosan Heavy Industries & Construction, the venture’s EPC contractor, amid the coronavirus crisis.

This increases the risk of budget overruns and project delays, although they would only indirectly affect Kepco as the EPC contractor would be required to bear the added costs.

The KDI pointed out the global transition to renewables indicated coal’s decline and could entail negative consequences for the Jawa power plant units.

At the same time, the ongoing coronavirus pandemic, which has yet to peak in Indonesia, may affect the project as it wreaks havoc on supply chains and project timelines while reducing electricity consumption. Youn said: “Planning of the Jawa 9 & 10 project was based on a gross overestimation of power demand growth.”

“Kepco should consider participating in the project only after closely examining the particular economic and market conditions in Indonesia,” reads the KDI’s report.

Despite the bleak profitability outlook, however, Kepco pursues its investment plans and seeks to obtain its board’s approval on the investment in the next board meeting scheduled for the end of June, according to Solutions for our Climate.

Earlier this month, the company announced through the media that the project passed the new pre-feasibility study, although the project score indicated that investments should be “considered with caution”, said the non-profit in a statement released on Thursday (18 June). In total, the firm looks to commit US$51 million to the Jawa venture.

In its statement, Solutions for our Climate said: “Kepco’s hasty decision to invest in the Jawa 9 & 10 project is likely to undermine the Korean government’s initiative towards a clean energy transition and sustainable economy.”

 

 

Source : https://www.eco-business.com/

By Tim Ha