An energy-efficient home for a three-generation family in Serbia

12.12.2023

windpark_vetropark — Foto-ilustracija: Pixabay

Photo-illustration: Unsplash (Michael Fortsch)

From a conventional Serbian dwelling to a model of modern energy efficiency – the Đukanović family from Serbia have transformed their home by reducing their energy consumption and taming their growing energy costs.

Thanks to an investment in energy-efficient technologies through the European Bank for Reconstruct and Development’s (EBRD) Green Economy Financing Facility (GEFF), they will enjoy a more comfortable and affordable home. At the same time, they will reduce their carbon footprint, which is at its highest in winter.

Miloš Đukanović shares his family home in Belgrade with his wife, children and parents. Last year, the family embarked on a journey to modernise their house and improve its energy efficiency. The 250 m2 house previously relied on a wood burner and, later, a pellet stove for heating. However, the need to enhance the family’s comfort during Serbia’s chilly winters and to find sustainable energy solutions prompted the Đukanovićs to switch to innovative green technologies.

Milos secured a loan totalling 31,000 euros from ProCredit Bank, one of the GEFF partner banks in Serbia, which on-lends funds to residential borrowers for investments in residential energy efficiency and renewable energy solutions.

The family invested in a heat pump, a photovoltaic system, energy-efficient windows and underfloor heating.

Although such home improvements can reduce energy use and long-term costs significantly, the initial financial outlay can be high. To help homeowners invest in green solutions, GEFF provides technical assistance and grants, supported by its donors.

Upon successful completion of the investment, the Đukanovićs received a grant incentive of 5,800 euros, funded by the European Union (EU).

It was not a quick journey, but definitely a worthwhile one. It took them a year to complete all the work, during which time their home underwent a remarkable transformation.

The expected benefits include a substantial reduction in energy consumption and a corresponding decrease in CO2 emissions of 3.6 tonnes per year. These reductions, coupled with significant savings on energy costs, mean the family will be able to recoup their investment within seven years.

“With the electricity sourced from the photovoltaic system, I anticipate a 50 per cent reduction in our non-heating electricity consumption,” Miloš says. “In addition, the new heating system promises further savings this winter. It means enhanced comfort and, above all, substantial financial relief. The decision to embrace green technologies has not only transformed our home, but also our quality of life.”

Beyond the financial aspects, the shift to green technologies has brought myriad advantages. Not only does the family enjoy a cosier home environment, but their reduced heating expenses have freed up additional funds. Furthermore, the market value of their property has surged, rendering their residence more appealing to prospective buyers or tenants.

The EBRD GEFF in the Western Balkans is co-funded by the EU through the Western Balkans Investment Framework, Austria, Japan and Switzerland through the High-Impact Partnership on Climate Action (HIPCA).

The HIPCA, launched by the EBRD and partner governments at the Glasgow COP26 climate conference in 2021, is supported by Austria, Canada, Finland, South Korea, the Netherlands, Switzerland, Spain, the Taiwan International Cooperation and Development Fund (TaiwanICDF) and the United Kingdom.

Source: EBRD

HOW TO DEVELOP ELECTROMOBILITY FASTER

10.12.2023

michael-fortsch-joiwHqPUv-o-unsplash — Photo-illustration: Unsplash (michael-fortsch)

Photo: : Courtesy of Vladimir Momčilović

Numerous factors influence the importance and representation of electric vehicles at the local and state level. In the first place, global trends are important, or let’s colloquially call it fashion. This has been dominant in the past, for instance, in the development strategies of smart technological solutions, i.e. smart mobile phones. Thus, due to a wrong assessment and a strategic decision not to implement touch screens, the Finnish Nokia, once the world’s leading mobile phone manufacturer, disappeared from the global market. But fashion is dominant even today in the sustainable short-range urban individual mobility segment, the so-called micro-mobility. No one could have guessed that electric scooters would flood cities worldwide in the number they have, except perhaps their manufacturers.

The reason for this growth is primarily due to their affordable price. However, the possibility of their unhindered use in cities was also affected by affirmative measures to increase the accessibility of city facilities, primarily intended for citizens with reduced mobility (disabled, elderly, mothers with prams), considering that these are transport means which with their 50 plus kilograms are not at all easy to carry in the hands upstairs and the like.

On the other hand, we have the measures of the so-called traffic calming through the redistribution of street space from passenger cars to different modes of movement, reducing their speed and relegating their dominant role in local environments to increase the safety of children, pedestrians, cyclists, and other vulnerable categories of road users in cities.

At the time of their expansion, the unpreparedness of all relevant state administration bodies and local governments in cities worldwide was evident because the regulations and rules necessary for their safe use were not in place. Evidence that this development has surprised state administration and local government bodies worldwide comes from the heterogeneity in their approach to solving this pressing problem. While some completely prohibit their use, others wander around looking for ways to integrate them with other forms of movement in cities safely. Therefore, to increase the representation and more significant role of electric vehicles, they must become modern transport means of the future in users’ minds, as opposed to outdated conventional passenger cars.

As an excellent example from the previous successful practices in cities and countries that have advanced far in the use of electric vehicles, below are recommendations on how to be successful in implementing this relatively new environmental concept, for which several key factors are crucial, plus the challenges and various obstacles that are still not overcome.

IN FOCUS:

Factors, challenges and obstacles

Photo-illustration: Unsplash (kumpan-electric)

The first factor is the clear and unequivocal determination of state administration and local governments for electric, i.e. environmentally friendly and sustainable operation of means of transport in road and city traffic. For example, when purchasing new buses for public city and suburban transport or new vehicles for rubbish collection, the decisive (dominant) criteria should be the environmental one (quieter operation and so-called zero emissions) instead of the economic one (lower price). It is manifested through continuously transparently applying green or environmentally friendly procurement criteria for all utility vehicles. In this case, the priority must be the general public interest and the well-being of the population, i.e. the purchase of exclusively electric and/or other fully environmentally friendly vehicles as opposed to the purchase of a larger number of cheaper, environmentally unacceptable vehicles. Public procurement of all government vehicles, especially utility vehicles, must be green.

Visibility is another factor. All electric vehicles should be clearly marked with the message that the state and local government bodies care for the population’s health and quality of life. It is not only marketing but also the promotion of this determination, which in the long run, raises the population’s awareness about the importance of purchasing exclusively environmentally friendly vehicles (for their individual use). When the population’s awareness matures, every individual will be ashamed to irresponsibly buy a passenger vehicle that is not environmentally friendly and powered by conventional fossil fuels, which, although cheaper, are still dangerous to health and harmful to the environment. Therefore, if something is demanded from the population, at least as much must be given to them.

The third indispensable success factor is comprehensive support. There are two segments here – the first is affordable and sufficiently widespread top-quality infrastructure for the electricity supply, i.e. chargers for electric vehicles and the other is state subsidies for the purchase of environmentally friendly vehicles.

Photo-illustration: Unsplash (andrew-roberts)

Serbia promptly started the installation of public charging stations on its motorways as part of its commitment and strategic determination on the road to EU membership. However, motorway support is not enough. An extensive network of fast and semi-fast chargers with sufficient power, to begin with, must be established near tourist destinations, cultural & historical sites, and sports & recreational facilities until it is so widespread that it is available in every populated place with a certain number of inhabitants.

A measure stipulating one charging place for every 10,000 inhabitants could be adopted. This would mean that to start with, Serbia will have to have 600 semi-fast and fast chargers in public parking lots in attractive locations. Support can also come from the private sector, especially since this is a commercial activity, where competition and the creation of the infrastructure for the electricity supply with a higher capacity, shorter charging time and the like must be ensured. In addition, the management of the charger system and efficient charging for the energy used.

There is an ongoing problem both here and abroad with the capacity of the power system for a complete transition to electric drive vehicles, but also with the imperative of obtaining environmentally clean electricity from renewable sources, which is an issue that many countries have been actively dealing with for the past few years. There are also a certain number of current problems in our system, such as the impossibility of billing for consumed electricity (which, according to the regulation, can only be done by a person authorized to distribute electricity), which forces current providers to charge for this service in line with the duration of the charger’s use, i.e. parking, using applications that only support payment cards of Serbian banks which prevents foreign users from using the charger, billing via a mobile phone operator which requires that you have the Serbian phone number and others.

To avoid demotivation, electric vehicle users should be given the most flexible and universal payment method, analogous to the current functioning of fuel supply stations. However, this part will certainly develop spontaneously under the developing market demand and improve at the request of users, so it is still not realistic to expect that to happen until there is a greater share of electric vehicles in the overall number of vehicles in Serbia.

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY

List of ship recycling facilities: first renewals of inclusion for yards located outside the EU

09.12.2023

Today, the European Commission adopted the 12^th edition of the European List of ship recycling facilities. The updated list renews the inclusion of two yards located in Türkiye and one yard located in the USA, after 5 years on the list. The Commission has also extended the date of expiry of inclusion of one listed yard located in Finland and five listed yards located in Norway. The new list furthermore removes three facilities located respectively in Denmark, the Netherlands and Norway because they are no longer in the ship recycling business. The European List now contains 45 ship-recycling facilities, including 35 yards in Europe (EU, Norway and UK), 9 yards in Türkiye and 1 yard in the USA. Several yards on the European List are capable of recycling of large vessels.

As part of the implementation of the EU Ship Recycling Regulation, the Commission works on the monitoring of compliance of the yards on the European List with the conditions set out in EU legislation. In that context, the Commission carried out for the first time in October unannounced inspections in Turkish yards.

European ship owners possess around 30 percent of the world fleet in tonnage. Many of these ships are being dismantled outside the EU, mainly in South Asia, under conditions that are often harmful to workers’ health and the environment. Since 31 December 2018, the EU Ship Recycling Regulation has been requiring all large sea-going vessels sailing under an EU Member State flag to use an approved ship recycling facility included in the European List of ship recycling facilities.

Background

The European List is regularly updated to add further compliant facilities or to remove the ones that have ceased to comply. To be included in the European List, any ship recycling facility, irrespective of its location, has to comply with a number of safety and environmental requirements. For facilities located in the EU, competent national authorities must check that all the relevant conditions are met, and then inform the Commission that the facility should be listed. Ship recycling facilities located in third countries and intending to recycle ships flying a flag of a Member State have to apply to the Commission for inclusion in the European List. The Commission then evaluates and checks how these yards comply with the requirements in the Regulation and proposes their inclusion in the European List when these requirements are met.

Source: European Commission

Financial headwinds for renewables investors: What’s the way forward?

08.12.2023

fossil fuels foto unsplash — Foto: Unsplash

Foto-ilustracija: Unsplash (
Chris LeBoutillier)

The impressive growth in clean energy investments in recent years has been led by renewable power. Annual spending on solar PV and wind projects has risen by more than USD 300 billion in the last five years, and now accounts for one-third of the total USD 1.8 trillion that we expect to go to clean energy investments in 2023. Deployment has been driven by a virtuous circle of policy support and cost reductions. The global energy crisis, coupled with acute concern over emissions and competition among countries for positions in the clean energy economy, has redoubled policy momentum in recent years.

Through the 2010s, renewable investors and governments designing policies became used to two supportive trends: relatively cheap capital in an era of low interest rates, and steadily falling costs. However, this context changed as the world emerged from the Covid-19 pandemic into the global energy crisis.

An environment of higher interest rates (outside China) means financing becomes more expensive, with multiple effects for renewables. Projects become harder to finance; companies’ profitability is affected as they need to increase their reliance on more expensive equity; and very leveraged companies have a higher risk of default. Clean energy investments are more vulnerable to a rise in borrowing costs than other types of energy investments, as they typically involve relatively high upfront costs that are compensated over time by much lower operating expenses.

High borrowing costs exacerbate challenges facing renewable project developers in many emerging and developing economies, where the cost of capital is already two or three times higher than in advanced economies and China. According to the latest survey data from the IEA’s Cost of Capital Observatory, nine out of ten respondents expect increases in the cost of capital in emerging and developing economies in 2023.

In addition, the extended run of cost declines for key clean energy technologies has been interrupted by volatile commodity prices and supply chain constraints. The IEA’s Clean Energy Equipment Price Index tracks prices for a basket of solar PV modules, wind turbines and lithium-ion batteries. There was a noticeable uptick in prices that started towards the end of 2020 and which remains visible for many clean technologies with the exception of solar PV.

The renewable power industry as a whole has demonstrated considerable resilience over the last few years. But the change in broader market conditions has brought signs of strain, especially in the wind sector.

Project commitments and economics have been upset by higher financing costs and higher input costs for key raw materials, including critical minerals, meaning that these projects have become difficult or impossible to deliver as planned. This has led wind developers to request price negotiations to accommodate higher costs, and in some cases to project delays and cancellations. It has also sapped willingness to bid in new auctions where the price expectations are not aligned with today’s costs. As reported in the latest Renewable Energy Market Update, auctions have been left undersubscribed as a result, especially in Europe. In 2022, unallocated capacity globally reached its highest-ever level with only around 85 percent of capacity awarded – compared with 90-95 percent in 2020 and 2021. Europe accounted for 14 out of the total 20 GW auctioned capacities that were left unallocated globally. This trend continued in 2023; a striking example came in the UK when an offshore wind auction was left with no bids.

This uncertainty is having cascading implications for supply chains, with wind manufacturing facilities operating at well under full capacity. Many manufacturers of wind turbines in the sector in Europe and the United States have posted negative net margins for seven consecutive quarters over the last two years.

The offshore wind sector has been particularly affected, with 12 GW of offshore wind capacity facing delays or cancellation in the UK and US alone. As a result, Ørsted wrote off USD 4 billion against US offshore wind projects. BP and Equinor also wrote off USD 800 million, and Iberdrola cancelled an 800 MW project in the US due to financial complications.

The solar PV industry has also been exposed to cost and financing pressures, but from a slightly different direction. Higher borrowing costs have been a concern for developers, but the main issue has been the emergence of a large excess in manufacturing capacity that is reducing the profitability of players throughout solar PV supply chains. As described in detail in the Special Report on Solar PV Global Supply Chains, the solar industry is dominated by large integrated Chinese companies and manufacturing capacity in China and elsewhere has been running ahead of deployment.

Foto-ilustracija: Unsplash
(Marcin Jozwiak)

The resulting fierce competition for market share has reduced the profits of vertically integrated manufacturers while non-integrated firms are struggling to attain profitability altogether. Smaller manufacturers are faced with extremely challenging conditions, as prices for solar PV modules reached record lows despite rising levels of demand.

Some of the challenges facing the wind and solar industries are primarily cyclical or temporary in nature. Cost pressures along supply chains are starting to ease: prices for key clean energy technologies have either levelled off or resumed their downward trajectory. Some issues facing projects have been attributable to delays in policy implementation, for example with aspects of the EU Green Deal or in finalising detailed tax credit guidance in the case of the US Inflation Reduction Act.

But the recent difficulties facing renewable projects also highlight some broader structural issues that policymakers need to address. Four issues stand out:

Inflexible tender designs: the trend in recent years in tenders was that renewables were able to offer increasingly lower prices in a low cost, low interest rate environment. This set expectations among governments that auction prices would only ever head downwards. Procurement and contracting terms were not flexible enough to accommodate changing macroeconomic conditions or cost pressures.
Long waiting times for permitting and connection: financial pressures have been compounded by long lead times required to connect to the grids and gain necessary permits. As the recent IEA report on Electricity Grids and Secure Energy Transitions makes clear, at least 3 000 GW of renewable power projects, of which 1 500 GW are in advanced stages, are awaiting grid connection. This is to equivalent to five times the solar PV and wind capacity added in 2022. In some countries, early-stage project contracts are awarded prior to securing permits and connection, which complicates final generation cost estimates for power producers.

Source: IEA

Fronius Tauro. Designed to perform – also in sustainability

07.12.2023

SE_HPIC_Fronius_Tauro_Greece_B0007063a — Photo: Fronius Tauro

Powerful in any situation: the robust Fronius Tauro inverter impresses not only by offering maximum flexibility in terms of system design, but also by its minimal overall system operating costs. The robust project inverter makes commercial large-scale photovoltaic systems even more cost-effective.

Quick installation and efficient maintenance
Power electronics protected by active cooling
Double-walled housing ensures optimum temperature compensation
Stable high performance even at ambient temperatures of up to 50 °C

But that’s not all. Fronius Tauro is as sustainable as a project inverter can be.

Impressive life cycle analysis

The results of the life cycle analysis for the Fronius Tauro could not be clearer: the environmental benefits exceed the environmental costs by a factor of up to 52, while in no more than ten months, the Tauro will produce more energy than was consumed to manufacture it. These are just two of the many outstanding results of the life cycle analysis demonstrating that the Fronius Tauro is “Designed to perform”.

Fronius’ sustainability experts spent eight months analysing the life cycle of the Fronius Tauro project inverter. Every step was examined, from the procurement of raw materials, through production and use, to disposal at the end of the product life cycle. Even the smallest aspects were carefully considered in incredible detail: “We evaluated 960 components with 5,050 parts and even etched components in sulphuric acid to be able to determine the weight of the semiconductors and gold elements inside even more precisely,” describes David Schönmayr, Project Manager R&D, Fronius International GmbH.

Scientifically-proven sustainability

The 8,400 results in total were subsequently verified by the highly regarded IZM Fraunhofer institute in accordance with ISO 14040 and 14044. “This is scientifically-provensustainability. We deal solely with facts, because we want to know how we are doing and incorporate these results into future products,” explains Schönmayr.

Karsten Schischke, from IZM Fraunhofer, is also convinced by the results: “A life cycle analysis is not an end in itself, but should identify specific opportunities for improvement in the life cycle. This is exactly what the life cycle analysis of the Tauro […] has achieved: the detailed analysis not only confirms the important positive contribution of PV inverters for the green transformation of the energy sector, but also identifies areas with potential for us to work on from the point of view of climate protection and the circular economy.”

Life cycle analysis delivers outstanding results

The results are undeniably impressive: the payback time of the climate impact (CO2 payback time) – in other words, the time until the inverter becomes climate neutral – is between five months and two years, depending on usage. Fronius Tauro also performs impressively when it comes to energy payback. The project inverter needs less than one year (0.34 – 0.83 years) to produce more energy than was consumed during its manufacture. Furthermore, up to 223,097 kg CO2-e are saved by the Fronius Tauro, equivalent to up to 200 flights between Vienna and New York.

“This is one of the key differences between Fronius and other manufacturers. We set ourselves apart through end-to-end transparency when it comes to the sustainability of our products. We are industry pioneers, both in terms of depth of detail and consistency of the life cycle analysis. And, our aim is to have the systems with the best carbon footprint,” says Martin Hackl, Global Director Marketing & Sales Business Unit Solar Energy, Fronius International GmbH.

From recycled materials to repairability

“Our customers are increasingly asking for life cycle analysis results. They want to know how much recycled material is in their inverter and what the situation is regarding repairability,” reveals Martin Hackl.

The Fronius Tauro is completely and fully repairable. Almost every part can be replaced, which also has a positive impact on service life. If, for example, a power stage set is replaced after ten years, up to 150 kg of CO2 is emitted. With our competitors, the entire inverter would have to be replaced, resulting in many times more CO2 being released into the atmosphere. This unique power stage set replacement option provides the ultimate in convenience for Fronius customers while also being good for the environment.

Source: Fronius Tauro

THE FUTURE GUIDED BY INNOVATIONS

06.12.2023

The engine of the future will be powered by electricity, and the future starts here and now. Led by innovation, the BMW strives to shape a tomorrow that will offer new opportunities for a greener and more sustainable society. That’s why the BMW’s vision is evolving along with the changes of the new era, which focuses on electric cars.

The BMW Group aims to be completely CO2 neutral by 2050 at the latest, and sustainability will be the basic postulate that shapes the business of one of the largest car manufacturers in the world, while respecting the highest standards in the field of electric mobility.

For all those who resolutely keep up with the upcoming changes, BMW Serbia has prepared special promotional benefits with the purchase of electric cars in the next period.

Thus, with every purchased electric vehicle, you get a BMW Wallbox charger, a four-year warranty (valid for up to 200,000 kilometers), as well as four years of regular service.

After almost five decades of research and development on the topic of sustainable and environmentally friendly mobility, BMW Serbia offers electric models with innovative technology, modern and attractive design.

Impressive ranges make driving the BMW electric cars more flexible and practical, but also more attractive than ever before.

IN FOCUS:

That’s why we present six attractive BMW electric models that are available within our special promotional offer from BMW Serbia: BMW iX, BMW iX1, BMW iX3, BMW i4, BMW i5 and BMW i7.

BMW IX

It is an attractive SAV model was created for electric mobility. Thanks to efficient BMW eDrive technology and fully electric four-wheel drive, the BMW iX achieves the range of 403 km to 633 km according to the WLTP standard (depending on the version and equipment of the model) and delivers impressive acceleration. The intelligent BMW Operating System 8 is used intuitively, and it made its debut on this particular model. With two powerful electric motors and BMW xDrive electric four-wheel drive, the BMW iX offers outstanding performance and unique driving experience.

BMW IX1

The all-electric BMW iX1 exudes energy and functionality, as well as the ability to inspire the driver to explore new roads. The self-confident appearance of this model leaves a breathtaking impression, thanks to the modern design language and perfect proportions. Superior comfort in the interior is achieved thanks to the active seats with massage and lumbar function for sitting comfort. The modern multimedia cabin is created thanks to the innovative BMW curved touch-sensitive display and voice control concept. Its range is from 417 km to 439 km according to the WLTP standard (depending on the equipment of the model).

BMW IX3

The BMW iX3 model is characterized by attractive, sporty appearance, while the aerodynamic and blue elements emphasize the electric nature of this vehicle in full. With the range of 453 km to 461 km according to the WLTP standard (depending on the equipment of the model) with efficient consumption, this model is ideally adapted to any route. The BMW iX3 features state-of-the-art technologies that combine emission-free mobility with supreme comfort. Intelligent driver assistance systems can be easily controlled by voice command, which increases safety during the journey. More dynamic, efficient and innovative than ever, the BMW iX3 features the fifth generation of BMW eDrive technology. This attractive SAV offers top performance that will impress you every meter you drive.

BMW

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY

Enhancing infrastructure can help boost Denmark’s clean energy investment

05.12.2023

photovoltaic-system-solarni-paneli — Foto-ilustracija: Pixabay

Denmark’s energy and climate ambition in sectors such offshore wind, biomethane and district heating are transforming the country’s energy system and reinforcing its image as a clean energy leader toward net zero emissions by 2050, according to a new in-depth policy review by the IEA.

In 2022, Denmark enjoyed the highest share of wind electricity (54 percent) in the IEA, which together with bioenergy and solar photovoltaics (PV) account for around 80 percent of the power mix. In the same year, almost 40 percent of Denmark’s gas consumption came from biomethane.

While great strides have been made in the energy sector, achieving Denmark’s goal of a 70 percent reduction in greenhouse gas (GHG) emissions by 2030 will require even greater efforts. By the end of the decade, Denmark must achieve in seven years what it managed over the past 30 years in terms of emissions reductions.

According to the new IEA energy policy review, additional measures will be needed most notably in the transport and buildings sectors. The completion of the green tax reform is critical, but should be accompanied by a broad transport decarbonisation strategy and a new vision for energy efficiency, focused on digitalisation, smart cities and buildings. The report offers a detailed evaluation of Denmark’s energy transition in each sector.

Denmark continues to demonstrate great leadership and innovation in the clean energy economy. As the birthplace of the modern offshore wind industry, it is now using that foundation to build an energy system for the future that will offer opportunities for its citizens and businesses on both the domestic and global stage,” said IEA Executive Director Fatih Birol. “At a time of uncertainty for energy markets, the IEA is committed to working with Denmark to achieve its energy transition and security goals.”

The global energy crisis sparked by Russia’s invasion of Ukraine brought Denmark’s reliance on energy imports into sharp focus, highlighting the need for security of supply, energy diversification and an acceleration of fossil fuel phase out. In 2022, the government proposed to bring forward its climate neutrality target to 2045 and aim for a 110 percent emissions reduction goal by 2050. This increased ambition will require solutions that enable negative emissions in addition to clean energy technologies.

Denmark already has ambitious renewable energy deployment targets. Notably, in the heating sector with an aim to fully replace fossil fuels with biomethane by 2030. There are also plans to increase offshore wind capacity almost eightfold as well as quadrupling onshore wind and solar PV by the same year. Under its Power-to-X (PtX) Strategy of 2021, Denmark is targeting up to 6 GW of hydrogen electrolysis capacity by 2030.

While Denmark has led the way on streamlined permitting for offshore wind, no fast-track process exists for onshore. As such, the IEA report recommends the government review best practices for fast tracking permitting, including a one-stop shop for onshore wind developers with a focus on digitalisation and auction designs to spur further cost reduction.

The report finds that Denmark is well placed to advance the decarbonisation of its economy thanks to regional integration. The North Sea region is a hub for shipping, aviation and industrial clusters and a future centre of demand for low-emissions hydrogen, e-fuels as well as carbon capture utilisation and storage (CCUS). Within only three years, Denmark has created framework conditions and rules for CCUS, completed its first tender and allocated the first CO2 storage licence in addition to agreeing regional hydrogen pipelines. The PtX taskforce is supporting the roll-out of Denmark’s hydrogen and low-emission fuels strategy with more than 30 PtX projects and actions underway.

The Danish government has an important role to play in mitigating supply chain risks, supporting bilateral agreements and the development of rules at the European Union (EU) level. These include the Carbon Border Adjustment Mechanism, rules on the certification of hydrogen and negative emissions, and a framework for CO2 transportation and storage. The IEA report also recommends preparing a green infrastructure master plan at the regional level, as Denmark assumes the Presidency of the North Sea Energy Cooperation in 2024. Such a plan would help to lower cost and de-risk investment. This includes power grids, CO2 and hydrogen networks.

Source: IEA

Holding the oil and gas sector accountable to methane promises

04.12.2023

emisije , zagađenje — Photo-illustration: Freepik (frimufilms)

Much of the world has felt the sting of climate change this year although, as ever, the poor and vulnerable have suffered the most.

This climate chaos has arrived at estimated global average temperatures of 1.4°C above pre-industrial levels. According to UNEP’s Emissions Gap Report, we are heading for 2.5 to 2.9°C this century. At those temperatures, the sting will become debilitating and deadly for many more people and economies.

We must deliver low-carbon development transformations that slash greenhouse gas emissions, ideally by 28-42 per cent by 2030 to stay on track for 2°C and 1.5°C respectively. Deep reductions in methane emissions are an important part of this transformation. Cuts to this powerful climate-warming gas are relatively cheap, fast and easy to deliver. Such cuts will buy time for decarbonization efforts in developing countries and bring other benefits, such as reducing deadly air pollution and avoiding crop losses.

So, it is welcome to see the oil and gas sector promising action through the Oil and Gas Decarbonization Charter.

However, transparency is going to be critical because trust is low. Sure, companies are saying the right things. Yet the coal, oil and gas production planned for 2030 is more than double the levels consistent with 1.5°C. It would require serious mental gymnastics for oil and gas companies to convince themselves they are doing all they can for the climate.

UNEP is working with the industry to ensure accountability. The Oil and Gas Methane Partnership 2.0, part of UNEP’s International Methane Emissions Observatory, is emerging as the global Monitoring, Reporting and Verification system on methane in the oil and gas sector. The UNEP Methane Alert and Response System detects methane emissions and notifies governments and operators so they can plug the leaks quickly. My thanks to the Bloomberg Philanthropies for providing new funding to these initiatives.

Now we need the oil and gas sector to make stronger promises, live up to them, and accompany action on methane with deep decarbonization of the energy system. This is how the sector can earn the world’s trust and adopt new business models that will allow them to remain profitable during and after the inevitable low-carbon transition.

Source: UNEP

NOVI SAD STEPS INTO THE WORLD OF ELECTROMOBILITY

03.12.2023

Regarding recent investments in innovation and infrastructure, Novi Sad was one of the most engaged cities in the country. The flat terrain that the city rests on has been successfully used for the development and expansion of bicycle paths, and recently, the city held a competition for the distribution of subsidies for cyclists, thanks to which there will be fewer traffic jams, plus boosts what is the healthiest and cleanest transport for people and the environment. Recently, a so-called turbo roundabout was commissioned, whereby drivers choose their direction before entering the roundabout, which should further expedite the traffic at that section. Apart from these innovations in infrastructure and traffic, starting this summer, ten new electric buses are now cruising the city, all part of the fleet owned by the Novi Sad Public City Transport Company (JGSP Novi Sad). We spoke with Apolonija Holo, Head of the Investment Maintenance Department at JGSP Novi Sad, about new buses, the company’s plans and the advantages of electric vehicles.

Q. When and how did the idea to include electric buses in public city transport develop? Have these buses replaced the oldest models that have served their time on the roads?

A. Our company’s engineers closely follow the development of the bus industry and new technologies and analyze the current market, so every new addition to the JGSP Novi Sad’s fleet follows technological achievements that ensure a higher level of safety, affordability, comfort and environmental protection. In recent years, our fleet received a hundred new CNG-powered buses, which will be discussed later. This decision is a substantial step forward.

Investing is part of Novi Sad’s larger involvement in the European Bank for Reconstruction and Development (EBRD) programme—Green Cities— which provides support to cities that want to invest in green and sustainable infrastructure, thereby solving key environmental challenges. With its Green Cities programme, the EBRD had already helped Novi Sad’s public transport to have 29 new buses as part of the ongoing fleet renewal program, when 100 new CNG-powered vehicles were purchased. This type of bus significantly reduces emissions of polluting gases, and they were purchased in 2020 and 2021.

The Novi Sad government signed a document with the European Bank for Reconstruction and Development (EBRD) in June 2020, stipulating its intentions and ambitions for purchasing electric buses. A year later, after being granted a loan with favourable terms and conditions, the procurement ensued.

The company strives to continuously renew its vehicle fleet so that a certain number of old buses are written off by purchasing new vehicles as needed.

IN FOCUS:

Q. Could you tell us more about the performance of these buses? Which exact models did you buy, and which countries did you import them from?

A. After the public procurement was completed, we decided to go for Solaris from Poland, a company whose buses are used for public transport throughout Europe. Solaris has been repeatedly awarded for quality and innovation in Poland, as well as in other countries. At the same time, Solaris Urbino 12 electric buses, which are now part of the JGSP Novi Sad fleet, won the prestigious 2017 European Bus of the Year award.

These are low-floor, twelve-meter-long buses that can take up to 80 passengers plus the driver. In addition to the equipment that is generally standard in our vehicles (built-in air conditioning, platform for disabled passengers, cameras and video surveillance), the new buses have modern Mirror Eye mirrors. It is a set of cameras that replace conventional mirrors and show the driver the area immediately around the bus, significantly increasing traffic safety. Furthermore, they are equipped with Mobileye Shield+, a solution designed to avoid traffic accidents making driving safer. Thanks to this system that notifies the driver with sound and visual signals where pedestrians and cyclists are and how far the bus is from nearby vehicles, the problem of blind spots is solved. The buses also have a fire extinguishing system and an alcohol testing device—the vehicle’s immobilizer.

Q. How many vehicles does JGSP Novi Sad have in total? What are immediate and not-so-immediate plans regarding this type of electromobility?

A. The JGSP Novi Sad fleet currently has 276 vehicles. According to most research and the regulation being adopted worldwide, electromobility is currently apostrophized as the future of traffic. Following our capabilities and needs, we will adapt to sustainable and economical transportation trends.

Q. Could you compare the financial advantages and disadvantages of conventional buses and new electric ones?

A. Electric buses are more expensive to operate, but only in the beginning. However, the affordability goes in their favor from the moment they start using them. According to data for April 2023 (internal statistics of energy consumption and purchase prices), the cost per kilometer for diesel buses is 65 RSD/km, for CNG buses 46 RSD/km, while for electric buses it is 20 RSD/km. Furthermore, we all know that city traffic is one of the major sources of pollution and we are aware of that part of our responsibility, as companies whose vehicles travel millions of kilometers annually. By investing in a sustainable form of mobility, we will contribute to improving the quality of the environment.

Prepared by: Milica Vučković

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY

Strong policy progress on energy efficiency seen in 2023

02.12.2023

Elektricna-energija- — Foto-ilustracija: Pixabay

Policy makers around the world expanded measures to promote energy efficiency in 2023, helping consumers save money and improving the security and sustainability of the global energy system – though progress is not moving fast enough to meet the world’s climate targets, according to a new IEA report.

The Energy Efficiency 2023 market report, published today, finds that policy momentum for energy efficiency continues to build following the global energy crisis set off by Russia’s invasion of Ukraine. Investments in efficiency have grown by 45 percent since 2020, and in the past year, countries representing three-quarters of global energy demand have strengthened energy efficiency policies or introduced new ones. Key measures are also becoming more widespread. For example, almost all countries now have efficiency standards for air conditioners, and the number of countries with standards for industrial motors has tripled within the past decade.

However, the report found that global improvements in energy intensity – a primary measure of energy efficiency – slowed in 2023. According to the report, this was the result of factors such as an economic rebound in energy-intensive sectors such as petrochemicals and aviation in some regions, as well as booming demand for air conditioning during what is on track to be the hottest year on record.

The IEA’s analysis has shown that to achieve net zero emissions from the energy sector by 2050, which is essential to limit global warming to the Paris Agreement target of 1.5 °C, annual improvements in energy efficiency need to double – rising from a level of 2 percent in 2022 to more than 4 percent per year on average between now and 2030. In 2023, global energy intensity improved by 1.3 percent, well below what is needed to achieve this target.

“The world’s climate ambitions hinge on our ability to make the global energy system much more efficient. If governments want to keep the 1.5 °C goal within reach while supporting energy security, doubling energy efficiency progress this decade is critical,” said IEA Executive Director Fatih Birol. “The findings of this report are a stark warning to the leaders gathering shortly at the COP28 climate conference in Dubai that they all need to commit to stronger action on efficiency and to deliver on it.”

A global commitment to double energy efficiency improvements this decade is one of the IEA’s five pillars for a successful outcome at COP28, which begins this week. Other priority actions to 2030 include tripling global renewable energy capacity; oil and gas companies committing to clean energy transitions, including cutting methane emissions from their operations by 75 percent; boosting clean energy investment in emerging markets and developing economies; and ensuring the orderly decline of fossil fuel use, including an end to new approvals of unabated coal-fired power plants.

Photo-illustration: Freepik (rawpixel.com)

The slower global rate of efficiency improvements masks some strong gains at the national level. After improving energy intensity by 8 percent in 2022, the European Union is set to post a 5 percent improvement this year. The United States is also on track for a 4 percent improvement in 2023. Since the start of the energy crisis, more than 40 countries in total have improved energy efficiency at a rate of 4 percent or more for at least one year.

The report notes that consistent and widespread efficiency gains are crucial to drive down emissions, especially given expectations for global growth in electricity demand. For example, universally switching to LED technology for lighting in the United States could save enough energy to power 3 million electric vehicles per year or heat 2.6 million homes with heat pumps.

The report also finds that achieving the doubling target would deliver substantial benefits for governments, citizens and industry. Under this scenario, employing workers in activities like retrofitting homes, installing heat pumps and manufacturing more efficient cars would lead to the creation of 4.5 million more jobs. It would also cut today’s home energy bills – reducing them in advanced economies by around one-third, for example. The climate impact would also be enormous. Doubling energy efficiency improvements by 2030 would lower global carbon dioxide emissions by over 7 billion tonnes, equivalent to the emissions from the entire transport sector worldwide today, according to the report.

Source: IEA

Warming, acidification, dropping oxygen levels threaten Europe’s seas

01.12.2023

more-obala-sea-nature — Foto-ilustracija: Pexels

Photo-illustration: Freepik (kdekiara
kdekiara)

The EEA briefing ‘How climate change impacts marine life’ summarises how increasing levels of greenhouse gas emissions in the atmosphere are affecting marine ecosystems in Europe. Supporting the review of the EU Marine Strategy Framework Directive, the EEA briefing further highlights geographic areas of special concern and actions to support ecosystem resilience.

Climate change affects marine life negatively mainly through its ‘deadly trio’ of making seawater warmer, more acidic, and less rich in oxygen. This summer, global sea surface temperatures were record high and Europe’s regional seas experienced several marine heatwaves. Recent research indicates that climate change could be responsible for up to half of the combined impacts on marine ecosystems.

The EEA briefing warns that semi-enclosed seas, shallow areas, and coastal waters in Europe are especially vulnerable to the impacts of climate change. This concerns particularly parts of the Baltic Sea, the Adriatic Sea and the North Sea, the EEA briefing notes.

The overall state of Europe’s seas is degrading but some parts of marine biodiversity show improvements where measures have been put in place and implemented. According to the EEA briefing, this suggests that it may be possible to help individual parts of marine ecosystems, such as individual species or habitats, to recover by reducing specific pressures. This could have positive effects on overall ecosystem resilience.

To support these developments, the EEA briefing highlights the importance of increasing marine protected areas to cover 30 percent of Europe’s seas, restoring damaged ecosystems, such as seagrass beds, and careful planning of where and how seas are used for human activities, such as energy production, shipping, and tourism, or designated as protected areas. These actions could help Europe’s marine ecosystems and their ability to continue providing much-needed services, including carbon sequestration, food, materials, recreation, and tourism.

Source: EEA

THE PATH TO THE DEVELOPMENT OF E-MOBILITY

29.11.2023

why-kei-8e2gal_GIE8-unsplash(1) — Photo-illustration: Unsplash (Why Kei)

In cooperation with the Faculty of Mechanical, Traffic and Electrical Engineering, the National Association of Autonomous and Electric Vehicles (NAAEV) is holding the sixth E-mobility Forum in Belgrade on October 11 and 12. The Forum will be organized under the auspices of the Ministry of Science, Education and Technological Development and the Ministry of Construction, Transport, and Infrastructure. The event will focus on challenges and innovative technological solutions in autonomous and urban mobility, including industry, academia, and city representatives. We spoke with Dalibor Ignjatović, Director of Innovation at NAAEV, about how far Serbia is on the road to the development of e-mobility and what measures should be implemented for people to travel safer and faster with electric vehicles.

“We started in 2015 with the idea of incorporating Serbia into the changes underway in global mobility at that time. We aim to direct Serbian scientific research and industrial potential towards cooperation on projects focused on innovative urban mobility solutions. Thanks to a contract, we have included the 11 largest technical faculties in Serbia and 14 domestic high-tech companies. In 2019, NAAEV received the status of HUB for Serbia from the European Institute of Innovation and Technology—Urban Mobility (EIT-UM), and this year we became a member of the European Association Connected, Cooperative and Automated Mobility (CCAM). As a result of the engagement of its capacities within a significant number of European urban mobility projects, NAAEV has become a contact point for scientific and research institutions, companies, and cities in Serbia, which the Association directs and includes in projects related to development, research and testing of electric and autonomous vehicles, infrastructure, and their components”.

IN FOCUS:

How have the authorities responded to NAAEV’s activities on engaging scientific and research potential in the development of electric vehicles?

Bearing in mind the scope and dynamics of changes in electric and autonomous transport, NAAEV forwarded several strategic initiatives to the Serbian government and line ministries regarding developing this field in our country. These include the 10-point Studies Programme for Electromobility in Serbia and the Guidelines for the Development of Electromobility in Serbia from 2019 to 2025, which contains 10 measures, the implementation of which puts Serbia on an efficient path towards e-mobility. We proposed the formation of an interdepartmental working group and the deadlines within which these measures could be implemented. However, so far and despite the steps towards the improvement of e-mobility that are being undertaken in Serbia, a lot of things are done slowly and are unsynchronized, because a clear institutional infrastructure has not been established yet, nor the necessary regulatory and strategic environment.

According to your estimates, how many electric four-wheelers are there in Serbia and how many chargers? How do you evaluate infrastructure development, and how can e-mobility develop faster?

This question is seemingly easy to answer. According to certain criteria, plug-in hybrid electric vehicles and hybrid vehicles can be counted as e-vehicles. These two categories, as well as Battery Electric Vehicles, significantly contribute to green transport implementation.

As part of the study on the development of electromobility for the city of Belgrade from 2022 to 2030, which was carried out by NAAEV and commissioned by the World Bank, an assessment was made according to which, by the end of 2022, almost 11,500 e-vehicles in Serbia that belong to the aforementioned vehicles should have been registered, which is less than one per cent of the total number of vehicles in the country. The study also showed that over 90 per cent should have been plug-in hybrid vehicles. The key point of the transition towards the electrification of private and public transport vehicles is the establishment of an adequate e-infrastructure, i.e. the availability of charging stations. In addition to undefined regulatory aspects in Serbia, the limited number of charging stations for electric vehicles is one of the main obstacles to carrying out the electric transition easily and quickly.

Photo-illustration: Pixabay (Autoknipser-de)

According to your estimates, at what rate will the number of e-vehicles and chargers increase in Serbia in the coming period? How can we improve the charger network?

Bearing in mind the analysis that the World Bank commissioned, the assumption is that the growth of the number of battery-powered electric vehicles and hybrid electric vehicles in Serbia on an annual basis in the period until 2030 will amount to five per cent. As for chargers, according to the same analysis, Serbia will need slightly more than 2,000 EV charging stations by 2030 to fulfil the needs of the expected number of users. I would like to underline that this is not only about the number of required chargers but also their structure and appropriate spatial arrangement. Fast charging (7—22 kW) and Rapid charging (50—99 kW) chargers will be installed in urban areas, while Ultra-rapid charging (100—360 kW) chargers will be installed on motorways.

How are autonomous transport solutions tested in Serbia? Where do we stand when it comes to regulations for autonomous vehicles?

Driverless autonomous vehicles are slowly becoming a reality, and statistics show that human error is the cause of more than 90 per cent of traffic accidents. In some countries, robot taxi services are already functioning and in addition to transporting passengers, robotic delivery in urban areas and, in particular, solving long-distance transportation of goods is a very near future. America and China are leading in developing legislation, which is the primary prerequisite for further developing and applying these technologies. Europe is still far behind in this matter. That’s why the arrival of Self Driving Group, a subsidiary of Yandex, which announced the testing of autonomous vehicles in Belgrade, gives Serbia a significant opportunity to become one of the first European countries to implement these state-ofthe-art services.

Interviewed by: Mirjana Vujadinović Tomevski

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY

What is fuelling the world’s antimicrobial resistance crisis?

28.11.2023

close-up-lekovi — Foto-ilustracija: Pixabay

Foto-ilustracija: Unsplash (Bill Oxford)

Antimicrobial resistance (AMR) is one of the greatest global health threats. It was associated with an estimated five million deaths in 2019, and if left unchecked, it could have a catastrophic impact on people and the economy. Research from the United Nations Environment Programme (UNEP) shows it could shave US$ 3.4 trillion off GDP annually and push 24 million people into extreme poverty in the next decade.

Pollution from the pharmaceutical, agriculture and healthcare sectors is one of the main drivers of AMR, which occurs when bacteria, viruses, fungi and parasites evolve over time and develop the ability to defeat the drugs designed to combat them.

A recent study found that more than a quarter of some 258 rivers around the world were polluted with drugs to a toxic degree. The highest concentrations of active pharmaceutical ingredients were found in Sub-Saharan Africa, South Asia, and South America.

“Limiting the emergence and spread of antimicrobial resistance is critical to preserving the ability to treat diseases, reduce food safety and security risks, fight inequities and protect the environment,” said Jacqueline Álvarez, the Chief of the Chemicals and Health Branch at UNEP. “AMR is a complex and interconnected crisis. It requires preventative and management measures with a ‘One Health’ approach that recognizes that the health of people, animals, plants and the environment are closely linked and interdependent.”

To mark World AMR Awareness Week, which takes place from 18 – 24 November every year, here is a primer on what is driving the spread of AMR.

1. Misuse of antibiotics

Excessive and inappropriate use of antibiotics can lead to antibiotic-resistant strains of bacteria. People can misuse antibiotics by not completing the prescribed course of antibiotics, using the incorrect dosage or being prescribed antibiotics unnecessarily. This haphazard approach, coupled with the improper disposal of drugs, allows more resistant bacteria to thrive, multiply and potentially lead to the development of superbugs that are difficult, if not impossible, to treat with existing antibiotics.

Antimicrobial misuse in the livestock sector, aquaculture, companion animals, and crop production is also a major concern with a risk for the development and spread of antimicrobial resistant microorganisms.

2. A lack of access to clean water and sanitation

Poverty, lack of clean water and poor sanitation make AMR worse. People living in places with limited access to water, sanitation and hygiene are at greater risk of coming into contact with contaminated water that may carry a variety of pathogens, including bacteria resistant to antibiotics. Animals are also more susceptible to diseases when hygiene conditions are poor.

AMR also exacerbates inequities within societies. Vulnerable groups, including women, children, migrants, refugees, and those living in informal settlements, are particularly vulnerable to drug-resistant infections and may have less access to health systems. Uncontrolled and untreated sewage exacerbates the problem.

3. Pollution from pharmaceutical companies and farming

Pollution from pharmaceutical manufacturing, livestock farming, aquaculture, intensive crop production and the healthcare sector are key drivers of AMR. Although the pharmaceutical industry has helped to improve public health, untreated or inadequately treated waste from drug manufacturing factories often ends up in the environment, contributing to the build-up of drug-resistant microbes. The improper disposal of unused and expired medicines also fuels the spread of AMR.

The overuse of drugs in agriculture remains a concern as farmers around the world continue to rely on antimicrobials to maintain the health of animals and, in some cases, promote their growth. Meanwhile, up to 75 per cent of antibiotics used in aquaculture or aquafarming may be lost into the surrounding environment. Fungicides, antibiotics, and other chemicals used in crops are usually applied directly into the environment and could result in higher local concentrations of these pollutants with subsequent effects on antimicrobial resistance.

4. Mass movement of people

Foto-ilustracija: Unsplash (Indrajeet Choudhary)

Rapid globalization has resulted in increasing numbers of people and goods moving across borders. In 2019 alone, a record 4.5 billion people travelled by air. The mass movement of people may contribute to the burden of antimicrobial resistance by allowing resistant microorganisms to travel from one side of the world to the other. Research has shown that antimicrobial-resistant bacteria carried by humans may persist for up to 12 months after travel, further contributing to the risk of AMR transmission.

To complicate matters, according to the UN Refugee Agency, there are currently 110 million forcibly displaced people around the world. Many of them lack access to basic rights including proper housing, healthcare, water and sanitation, which are all factors that increase the spread of AMR.

5. Climate change and biodiversity loss

The climate crisis is exacerbating antimicrobial resistance. Extreme weather events, such as floods and rising temperatures, help proliferate microbes in the environment. Flooding can cause wastewater and sewage that is full of antimicrobial-resistant microbes to overwhelm treatment plants and contaminate surrounding areas. Biodiversity loss makes AMR worse by diminishing the richness of plant species that might hold the key to medicines that can treat infections now resistant to drugs.

Source: UNEP

The shift to the green economy leads to big and small transitions

27.11.2023

ljudi-put — Photo-illustration: Pixabay-StockSnap

Photo illustration: Unsplash (Micheile Henderson)

The global shift to net zero will require major structural changes in economies, as well as extensive change in daily lives. The scale of the transition is unprecedented: from the rush to source critical raw materials to the reconfiguration of global supply chains; from the rise of green skills in the workforce to the development of environmentally sustainable housing markets.

The EBRD Transition Report 2023-24: Transitions big and small, published today, offers revealing insights into the way macro-level trends leading to carbon neutrality impact the types of job sought, household management and, ultimately, the perceived level of happiness in the regions where the Bank operates.

EBRD Chief Economist Beata Javorcik said: “The change and upheaval that stems from these trends will affect people’s lives for the foreseeable future. Policymakers will need to establish a deep understanding of those effects in order to plan future stages of the green transition, as individual attitudes will both shape and be shaped by that transition process. […]

“The success of the green transition will depend on winning their hearts and minds as we continue our journey towards a cleaner future. If there is one thing we have learned from 30 years of transition in the EBRD regions, it is that reforms will not last unless they have broad-based support.”

Big transitions

Climate change, technological development and geopolitical tensions are all reshaping global supply chains in significant ways.

The production of green and digital technologies requires reliable access to critical raw materials. Several EBRD economies, including the Czech Republic, Morocco, Tajikistan and Türkiye, are major producers or home to relatively large reserves of raw materials used for solar power and the fuel cell sector. However, establishing new mines and refining facilities will require considerable time and investment.

Meanwhile, geopolitical tensions and the fragmentation of global trade are transforming value chains in a way that offers a potential opportunity to increase exports from economies in the EBRD regions.

Small transitions

Happiness

Using rich data recently collected by the EBRD and the World Bank through the fourth Life in Transition Survey, the Transition Report reveals that average life satisfaction in the Bank’s regions has risen further since 2016.

People in Central Asia are the happiest, followed by notably increased scores in south-eastern Europe and eastern Europe and the Caucasus.

Overall, the upward trend probably reflects rising incomes, a shift towards more pleasant and higher-skilled jobs and improvements in health.

Jobs

In the labour market, the green economy is increasing demand for workers with green skills (who are paid an extra 4 per cent, on average). However, the ability to move from brown to green jobs remains sluggish across the EBRD regions, partly because of the slow pace of green innovation.

Green policies affect different labour-market segments in different ways, potentially upending local job markets. For example, the loss of existing jobs in the most polluting manufacturing sectors is likely to be concentrated in specific regions. Also, lower-skilled workers tend to be more sceptical about the need for environmental policies.

Housing

Post-war housing blocks are still prevalent across many of the EBRD regions. Levels of home ownership remain high, but there is limited new construction and little social housing.

Housing also has a substantial environmental footprint. Even though households consume less energy in emerging Europe, Central Asia and North Africa, residential emissions are on a par with advanced European comparators, partly reflecting a continued reliance on coal. However, there is scope for significant emission reductions through home improvements in insulation and metering.

Structural reforms

The annual publication also analyses progress on economic development and structural reforms, looking at whether economies are competitive, well governed, green, inclusive, resilient and integrated.

Over the last year, scores in the areas of inclusion and integration have increased substantially, while those for governance have declined. Across all areas, improvements have been concentrated mainly in central Europe, the Baltic states and south-eastern Europe, with declines observed in the southern and eastern Mediterranean, and eastern Europe and the Caucasus.

Source: EBRD

THE TREND OF GROWING ELECTRIC CAR SALES

26.11.2023

električni auto , punjač — Photo-illustration: Unsplash (Michael Fousert)

Photo-illustration: Unsplash (chuttersnap)

The decarbonization of road transport, which accounts for more than 15 per cent of global energy-related emissions, is a challenge that almost the entire planet is grappling with. Alternative fuel vehicles, which would replace diesel and gasoline, are one way of reducing emissions. However, electric vehicles remain the key to achieving zero emissions.

The latest Announced Pledges Scenario shows the extent to which the set goals for getting to net zero emissions by 2050 are achieved. The Scenario was published by the International Energy Agency (IEA) in August 2023, and it is estimated that the growth from the current 17 million electric cars to 800 million by 2040 would lead to a reduction of transport emissions by 36 per cent.

The data also show that a significant increase in the sale of electric vehicles worldwide was recorded from the beginning of 2020 to the end of 2022 when, in three years, sales increased from 4 to 14 per cent. In 2022, sales exceeded 10 million vehicles and taking 2022 as a benchmark year, the People’s Republic of China had the highest global sales of electric cars, followed by Europe and the US. With such a result, China’s share in world sales was 60 per cent.

IN FOCUS:

The EU has been investing significant effort in the decision-making process to reduce carbon dioxide emissions, including the decarbonization of transport.

One of the more important decisions, which is certainly an incentive for increasing the sale of electric vehicles, is that from 2035, only cars with zero emissions will be sold, with possible exceptions that vehicles with internal combustion engines (IE engines), which rely on e-fuels, will remain in use.

Although binding measures and national policies implemented by countries worldwide are good incentives, financial measures remain the most important ones.

According to the IEA, in 2022, the global spending on electric cars went up by 425 billion dollars, and only about 10 per cent of that spending could be attributed to government support and incentives, while the rest comes from individual consumer money.

Government incentives will not be enough to make electric cars more affordable, depending on the overall market situation. Namely, as the electric car market becomes increasingly competitive, the range of affordable models grows.

Compared to 2018, the number of available models more than doubled in 2022, reaching 500. Speaking of prices, if crude oil prices remain at last year’s quite high level, that could also boost electric car sales.

Growth in sales is expected to continue in 2023, as evident in the results that we are going to see at the end of this year. It is estimated that 14 million vehicles will have been sold by the end of the current year. If the forecasts are true, sales of electric cars could account for 18 per cent of total car sales this year.

Prepared by: Katarina Vuinac

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY

The oil and gas industry faces a moment of truth and an opportunity to adapt

25.11.2023

power-plant-elektrana na gas — Foto-ilustracija: Pixabay

Oil and gas producers face pivotal choices about their role in the global energy system amid a worsening climate crisis fuelled in large part by their core products, according to a major new special report from the IEA that shows how the industry can take a more responsible approach and contribute positively to the new energy economy.

The Oil and Gas Industry in Net Zero Transitions analyses the implications and opportunities for the industry that would arise from stronger international efforts to reach energy and climate targets. Released ahead of the COP28 climate summit in Dubai, the special report sets out what the global oil and gas sector would need to do to align its operations with the goals of the Paris Agreement.

Even under today’s policy settings, global demand for both oil and gas is set to peak by 2030, according to the latest IEA projections. Stronger action to tackle climate change would mean clear declines in demand for both fuels. If governments deliver in full on their national energy and climate pledges, demand would fall 45 percent below today’s level by 2050. In a pathway to reaching net zero emissions by mid-century, which is necessary to keep the goal of limiting global warming to 1.5 °C within reach, oil and gas use would decline by more than 75 percent by 2050.

Yet the oil and gas sector – which provides more than half of global energy supply and employs nearly 12 million workers worldwide – has been a marginal force at best in transitioning to a clean energy system, according to the report. Oil and gas companies currently account for just 1 percent of clean energy investment globally – and 60 percent of that comes from just four companies.

“The oil and gas industry is facing a moment of truth at COP28 in Dubai. With the world suffering the impacts of a worsening climate crisis, continuing with business as usual is neither socially nor environmentally responsible,” said IEA Executive Director Fatih Birol. “Oil and gas producers around the world need to make profound decisions about their future place in the global energy sector. The industry needs to commit to genuinely helping the world meet its energy needs and climate goals – which means letting go of the illusion that implausibly large amounts of carbon capture are the solution. This special report shows a fair and feasible way forward in which oil and gas companies take a real stake in the clean energy economy while helping the world avoid the most severe impacts of climate change.”

The global oil and gas industry encompasses a large and diverse range of players – from small, specialised operators to huge national oil companies. Attention often focuses on the role of the private sector majors, but they own less than 13 percent of global oil and gas production and reserves.

Every company’s transition strategy can and should include a plan to reduce emissions from its own operations, according to the report. The production, transport and processing of oil and gas results in nearly 15 percent of global energy-related greenhouse emissions – equal to all energy-related greenhouse gas emissions from the United States. As things stand, companies with targets to reduce their own emissions account for less than half of global oil and gas output.

To align with a 1.5 °C scenario, the industry’s own emissions need to decline by 60 percent by 2030. The emissions intensity of oil and gas producers with the highest emissions is currently five-to-ten times above those with the lowest, showing the vast potential for improvements. Furthermore, strategies to reduce emissions from methane – which accounts for half of the total emissions from oil and gas operations – are well-known and can typically be pursued at low cost.

While oil and gas production is vastly lower in transitions to net zero emissions, it will not disappear – even in a 1.5 °C scenario. Some investment in oil and gas supply is needed to ensure the security of energy supply and provide fuel for sectors in which emissions are harder to abate, according to the report. Yet not every oil and gas company will be able to maintain output – requiring consumers to send clear signals on their direction and speed of travel so that producers can make informed decisions on future spending.

The USD 800 billion currently invested in the oil and gas sector each year is double what is required in 2030 on a pathway that limits warming to 1.5 °C. In that scenario, declines in demand are sufficiently steep that no new long-lead-time conventional oil and gas projects are needed. Some existing oil and gas production would even need to be shut in.

In transitions to net zero, oil and gas is set to become a less profitable and riskier business over time. The report’s analysis finds that the current valuation of private oil and gas companies could fall by 25 percent from USD 6 trillion today if all national energy and climate goals are reached, and by up to 60 percent if the world gets on track to limit global warming to 1.5 °C.

Opportunities lie ahead despite these challenges. The report finds that the oil and gas sector is well placed to scale up some crucial technologies for clean energy transitions. In fact, some 30 percent of the energy consumed in 2050 in a decarbonised energy system comes from technologies that could benefit from the industry’s skills and resources – including hydrogen, carbon capture, offshore wind and liquid biofuels.

However, this would require a step-change in how the sector allocates its financial resources. The oil and gas industry invested around USD 20 billion in clean energy in 2022, or roughly 2.5 percent of its total capital spending. The report finds that producers looking to align with the aims of the Paris Agreement would need to put 50 percent of their capital expenditures towards clean energy projects by 2030, on top of the investment required to reduce emissions from their own operations.

The report also notes that carbon capture, currently the linchpin of many firms’ transition strategies, cannot be used to maintain the status quo. If oil and natural gas consumption were to evolve as projected under today’s policy settings, limiting the temperature rise to 1.5 °C would require an entirely inconceivable 32 billion tonnes of carbon captured for utilisation or storage by 2050, including 23 billion tonnes via direct air capture. The amount of electricity needed to power these technologies would be greater than the entire world’s electricity demand today.

“The fossil fuel sector must make tough decisions now, and their choices will have consequences for decades to come,” Dr Birol said. “Clean energy progress will continue with or without oil and gas producers. However, the journey to net zero emissions will be more costly, and harder to navigate, if the sector is not on board.”

Source: IEA

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