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Microsoft signs 10-year carbon removal deal with Climeworks

Microsoft signs 10-year carbon removal deal with Climeworks

The tech giant first announced an intention to source carbon removal solutions from Climeworks in January 2021, a year after pledging to achieve carbon-negative operations and supply chains by 2030. To achieve this 2030 goal, Microsoft – which is already carbon-neutral in operations – intends to halve emissions this decade and invest to offset and remove more carbon than it emits annually.

This week, Climeworks confirmed that it has entered into a ten-year purchase agreement with Microsoft. The investment in the deal has not been disclosed at this stage, but Climeworks claims it is “one of the largest” in the DAC space and will support the removal of “tens of thousands of tonnes of carbon dioxide from the atmosphere”.

“Microsoft’s multi-year offtake agreement with Climeworks is an important step towards realizing the ‘net’ in net zero,” said Microsoft’s chief environmental officer Lucas Joppa. “Our experience in purchasing renewable energy shows that long-term agreements can provide an essential foundation for society’s race to scale new decarbonisation technologies.”

 

Pictured: Climeworks’ Orca DAC plant in Iceland. Image: Climeworks

 

Other corporate supporters of Climeworks include Ocado, Swiss RE, Audi, LGT and Stripe, the latter of which is spearheading a collaborative private sector commitment on scaling carbon capture technologies. Called ‘Frontier’, the collaboration is backed by $925m of commitments to purchase carbon removals using man-made technologies this decade.

 

Technology scale-up

Climeworks currently operates 17 DAC plants, including one, Orca, which is operating on a commercial basis. Orca came online in September 2021 and is based in Hellisheiði, Iceland. Its CO2 removal capacity is 4,000 tonnes per year.

Last month, Climeworks confirmed plans for its 18th and largest plant to date – Mammoth, also in the same Icelandic region. The plant is expected to begin operations in either late 2023 or early 2024. In the first instance, it will have a CO2 capture capacity of 36,000 tonnes per year. Climeworks is aiming to scale to two megatonnes of capacity by 2030, laying the foundations for scaling to a gigatonne of capture capacity by 2050.

Climeworks’ technology works by drawing air into a collector with a fan. Inside the collector, CO2 is filtered out. When the filter is full, the collector is closed and heated to release the CO2, ready for concentration and storage by storage partner Carbfix. The carbon associated with developing and operating the DAC facilities, Climeworks claims, is typically equivalent to 10% of the carbon that will be captured. This calculation considers the fact that the facilities are powered by renewable energy.

Microsoft’s Joppa has called DAC “a nascent but crucial industry” to achieve the halving of net global emissions by 2030 and bringing them to net-zero by 2050 – the levels recommended by the Intergovernmental Panel on Climate Change (IPCC) for giving humanity the best chance to limit the global temperature increase to 1.5C.

Indeed, some climate scientists have concluded that large-scale carbon capture – whether man-made or nature-based – is needed at scale to avert the worst physical impacts of climate change due to historic and continuing emissions. The IPCC itself has stated that, by 2050, the world’s air-based carbon removal capacity should be 3-12 billion tonnes in a net-zero world.

However, as Joppa acknowledged, man-made systems are in their relative infancy commercially. Critics are concerned that they may not deliver their promised benefits and could be used as a means for businesses to avoid reducing their emissions in the first instance.

 

ETC report

In related news, the Energy Transitions Commission (ETC) has this week published a new report outlining its recommendations for scaling carbon capture, storage and utilisation (CCUS) technologies while ensuring that efforts around zero-carbon electricity and emissions reductions are not de-prioritised.

That report forecasts that, in 2050, the world will need 7-10 gigatonnes of CO2 capture. This is at the higher end of the levels recommended by the IPCC. Reaching this scale, the ETC argues, cannot be dependent on action in the mid or long-term – concerted efforts are needed this decade, with the backing of both public and private finance.

Overall, the ETC sees a “vital but limited” role for CCUS. Its report sets out how the carbon removals provided by these technologies should be prioritised for sectors which are hard to decarbonise, such as heavy industry, and should be scaled most rapidly in the sectors and locations where CCUS has an economic advantage over other decarbonisation solutions.

The ETC has been a vocal supporter of CCUS in recent years. In March, it released a separate report recommending that the global CCUS capacity reaches 3.5 billion tonnes annually by 2030.

 


 

Source Edie

US transition to electric vehicles would save over 100,000 lives by 2050 – study

US transition to electric vehicles would save over 100,000 lives by 2050 – study

A speedy nationwide transition to electric vehicles powered by renewable energy would save more than 100,000 American lives and $1.2tn in public health costs over the next three decades, according to a new report.

Analysis by the American Lung Association highlights the public health damage caused by the world’s dependence on dirty fossil fuels, and provides a glimpse into a greener, healthier future – should political leaders decide to act.

According to the report, swapping gas vehicles for zero-emission new cars and trucks in the US would lead to 110,000 fewer deaths, 2.8m fewer asthma attacks and avoid 13.4m sick days by 2050.

The shift would lead to a 92% fall in greenhouse gases by 2050, generating $1.7tn in climate benefits by protecting ecosystems, agriculture, infrastructure from rising sea levels and catastrophic weather events including drought and floods.

Overall, communities of color and low-income neighborhoods would reap the biggest benefits from zero-emission technologies as they currently suffer disproportionately from air pollution and climate disasters, the study says.

The calculations are based on transitioning to 100% electric cars sales by 2035 and 100% electric trucks by 2040, as well as ditching dirty fossil fuels for 100% renewable energy sources such as solar, wind, hydroelectric and nuclear by 2035.

However, given political polarization in the US and a lack of political urgency, it seems highly unlikely that oil and gas companies will stop drilling or that American car dealers will be selling only electric cars by 2035.

Joe Biden’s Build Back Better (BBB) legislation, which includes historic funds for climate initiatives, has failed to move through the Senate due to stonewalling by the Republicans and the conservative Democrat Joe Manchin, the fossil-fuel friendly senator from West Virginia.

But the ALA report details the widespread health benefits that could be achieved if political leaders prioritized climate action over corporate profits.

“The current rising gas and energy prices are a symptom of our addiction to fossil fuels. But outside the economic pain, there’s significant public health pain caused by our addiction to fossil fuels. Transitioning to zero-emission technologies and energy depends on strong political leadership and investments, in order to get the potential health benefits off the page and into the real world,” said Will Barrett, author of Zeroing in on Healthy Air.

The scientific evidence is unequivocal. Any further delay in concerted global action to tackle the climate crisis will miss a rapidly closing window to secure a livable future, according to the Intergovernmental Panel on Climate Change (IPCC).

In the US, transportation and energy are the biggest contributors to greenhouse gases and toxic air.

At least four in 10 Americans – more than 135 million people – live in communities affected by unhealthy levels of air pollution which increase the risk of asthma attacks, strokes, lung cancer, heart attacks, impaired cognitive functioning, premature births and premature death.

The greatest direct health risks are faced by those living close to highways, ports, rail yards, refineries, drilling sites, pipelines and power plants – who are disproportionately communities of color and low-income households. These health burdens are due to decades of inequitable land use policies and systemic racism.

According to the ALA, a shift to zero-emission technologies compared with business as usual would lead to a 78% reduction in Volatile Organic Compounds (VOCs) – which can cause difficulty breathing, nausea, damage to the central nervous system and cancer. Nitrogen oxides (NOx), which are associated with increased ER visits and hospitalizations with asthma, could fall by 92%. (NOx and VOCs are building blocks for ozone – or smog.)

Fine ​​particle (PM2.5) pollution, which elevates the risk of heart disease, lung cancer and asthma, would drop 61% by 2050.

Every state stands to benefit, with more than half gaining at least $10bn in cumulative public health savings from a range of avoided health impacts like premature deaths, asthma emergencies and sick days. The country’s two most populated states – California and Texas – could save $100bn, while six others – Pennsylvania, Florida, Ohio, New York, Illinois and Michigan – stand to save at least $50bn by 2050. (Hawaii and Alaska were not included.)

The hundred US counties, accounting for about 3% in total, with the highest proportion of people of color could experience about 13% of the cumulative health benefits of the green transport transition.

The impacts of doing nothing are very real.

As a child, Rohan Arora from the Washington DC area would rush to fetch his asthmatic father’s inhaler as he coughed and wheezed, triggered by the air pollution on his journey home from work. “It was almost every day, a hazard of living in a city, and sometimes he needed to go to the hospital. Transitioning to zero emissions and clean renewable energy is urgent,” said Arora, 21.

Heavy-duty vehicles like cargo trucks account for just 6% of the national on-road fleet, but generate 31% of the total greenhouse gases in the transport sector. In short, cars produce more harmful planet-heating gases and air pollutants because there are so many of them on the road, but trucks are by far the more toxic.

BBB legislation earmarks $555bn to tackle the energy and transport sectors through a variety of grants, tax incentives and other policies to boost jobs and technologies, as well as major investments in sustainable vehicles and public transit services.

“Zero-emission transportation is a win-win for public health,” said Harold Wimmer, ALA’s president and CEO.

 


 

Source The Guardian

Think small to fight climate change

Think small to fight climate change

When applied to droughts, wildfires, hurricanes, floods, or other extreme weather events, the term “unprecedented” is getting old. In August, when the Intergovernmental Panel on Climate Change released its latest report about the dire realities we face, a drought exacerbated by global warming already had been raging for years across much of southern Africa.

It seems as though world leaders are finally ready to take meaningful action, but there’s a critical group regularly missing from key climate meetings like the recent United Nations Climate Change Conference (COP26) in Glasgow: local, climate-focused small businesses that already are making a difference in their communities. Small and medium-size enterprises (SMEs) working on climate adaptation and mitigation are a crucial but underestimated partner in the fight to reduce emissions.

Even though climate financing options are increasing, SMEs’ role in sustainable development continues to be overlooked. Their predicament is one shared by more than 200 million SMEs of all types in developing countries that cannot get the funds they need to grow, facing an estimated US$5.2 trillion annual financing gap.

International investors focus on getting dollars out the door through larger deals, while local capital is kept on the sidelines by high collateral requirements and unmanageable interest rates for early-stage businesses.

SMEs represent 90 per cent of businesses and provide more than 50 per cent of jobs worldwide according to the World Bank, so they have a key role to play in creating opportunities in economies struggling to recover from the Covid-19 pandemic.

Examples like SELCO India, a pioneering off-grid solar company, and Husk Power, an innovative pay-as-you-go renewable energy provider operating in Asia and Africa, show that with the right amount and type of financing and technical support, small businesses can improve lives through energy access – a key international goal. Off-grid renewables also help power sustainable mobility in both rural and urban settings.

Small businesses also have an important role to play in greening agriculture. Land use for crop and livestock production accounts for 24 per cent of global greenhouse-gas emissions, and farms are vulnerable to droughts, floods, and rising temperatures. Financing climate-smart agricultural entrepreneurs is essential for making our food systems more resilient.

Here, too, off-grid renewable energy has become indispensable, providing power for irrigation, processing grains, and operating the cold rooms and coolers needed to store dairy products, fresh seafood, and fruits and vegetables. In India, Technoserve is helping small farms withstand and adapt to the climate crisis and raise their productivity without increasing emissions.

As these examples show, when small businesses have the financing and support they need, they can drive economic growth while mitigating emissions and supporting adaptation to climate change. That is because small businesses are more agile and adaptable – and respond to local needs much faster and more effectively – than large organisations. They also offer governments and policymakers an opportunity to try out new ideas, revealing both pitfalls and best practices before initiatives are scaled regionally or nationally.

 

For starters, the world needs far more finance vehicles and instruments that are tailored to small businesses working in the green economy. That means a mix of lower-cost, long-term capital and blended finance, as well as easier access.

 

Achieving the global goal of net-zero emissions requires policymakers, investors, banks, and others to attend to SMEs’ needs much more effectively than they have in the past. For starters, the world needs far more finance vehicles and instruments that are tailored to small businesses working in the green economy. That means a mix of lower-cost, long-term capital and blended finance, as well as easier access.

The world also needs more business accelerators focused on adaptation to climate change. There are only 25 such green accelerators located in non-OECD countries. Funding research and establishing professional networks will drive support to businesses that have strong growth potential.

Better metrics to assess success will be needed. That does not mean lowering environmental, social, and governance standards. Instead, it means devising indicators specifically for green enterprises in the SME sector to help them demonstrate their effectiveness and attract more investment.

Finally, investors must not overlook women, who produce up to 80 per cent of food in the Global South. Women also are the most vulnerable to the effects of climate change. Investing in female climate entrepreneurs benefits the climate, food production, and overall prosperity.

Small businesses are integral to climate-change mitigation, adaptation, and resilience. Providing them the financing and support necessary to help them succeed is in everyone’s interest.

Kristina Skierka is CEO of Power for All. Richenda Van Leeuwen is Executive Director of the Aspen Network of Development Entrepreneurs.

© Project Syndicate, 2021

 


 

Source Eco Business

Global coal plant projects down 76% since 2015

Global coal plant projects down 76% since 2015

The global pipeline of new coal plant projects has shrunk 76 per cent since 2015, a new analysis shows, putting many countries in a good position to carry out UN Secretary General António Guterres’s call for no new coal investment.

“The economics of coal have become increasingly uncompetitive in comparison to renewable energy, while the risk of stranded assets has increased. Governments can now act with confidence to commit to ‘no new coal’,” reports climate think tank E3G in its analysis.

Based on findings by the Intergovernmental Panel on Climate Change (IPCC), worldwide coal use will need to fall by around four-fifths during the current decade to keep average global warming below 1.5°C. The International Energy Agency says advanced economies will need to cut off coal by 2030, followed by a full global cessation by 2040.

For this to happen, “a pivotal first step is ensuring no new coal-fired power stations are built,” say Leo Roberts, E3G’s research manager for fossil fuel transitions, and Christine Shearer, program director at Global Energy Monitor, in a guest post for Carbon Brief.

To date, say the authors, 44 world governments have committed to stopping new construction of coal projects, and another 33 have cancelled their project pipelines. Seven other countries have no plans to develop new coal at all.

Only five OECD countries are considering building new coal, and projects in four of those five are not expected to come through. For the fifth country—Turkey—“fears of the impact of a potential European carbon border adjustment mechanism and climate-exacerbated wildfires are increasing pressure to cancel the country’s remaining pipeline and explore alternatives,” says Roberts and Shearer.

In China, which accounts for more than half of the world’s planned coal projects, coal capacity has scaled back 74 per cent since 2015. All the other non-OECD countries have reduced their collective pre-construction pipeline by 77 per cent.

In all, “the shift in coal dynamics means that fewer and fewer countries have new coal plants under development—and an increasing list are making this into a formal ‘no new coal’ commitment,” the authors write.

Just 37 countries have remaining pre-construction pipeline projects, and 16 of them only have one project each. In all, more than four-fifths of the planned coal plants can be found in just six countries: China, India, Vietnam, Indonesia, Turkey, and Bangladesh.

“Because the global distribution of proposed power plants is highly concentrated, firm commitments to ‘no new coal’ by just these six countries would remove 82 per cent of the world’s remaining pipeline, should such pledges be forthcoming,” say Roberts and Shearer.

Although they host a concentrated percentage of the world’s remaining pre-construction coal projects, several within this handful of countries are especially vulnerable to climate change, despite historically contributing only modestly to global emissions. The report from E3G calls on the international community to support these countries in moving away from coal through public and private clean energy finance.

“COP 26 will be a key moment for OECD and EU members and China to demonstrate that such support is available now for all countries that are willing to shift from dirty coal to clean energy,” says E3G in its report.

This story was published with permission from The Energy Mix.