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Introducing a New Webinar Series: The Role of Green Bonds in the Energy Transition

Foto-ilustracija: Pixabay
Photo-illustration: Pixabay

Green bonds can serve as a key instrument to finance the transition towards a low-carbon economy in the Energy Community Contracting Parties. The Energy Community Secretariat, in cooperation with the Hungarian National Bank and with the support of the Western Balkans Green Center, is launching a new webinar series to help raise awareness of green bonds and provide practical advice on how to mobilize this type of finance. With investors actively looking for sustainable, green investment opportunities, focus will be put on the tools needed to attract potential investors.

In the course of six webinar-style lectures, the Secretariat will seek to improve Energy Community stakeholders’ knowledge about the steps to take to design green bonds on a national, municipal and company scale, while also focusing on the building sector and energy transition. The webinars aim to attract a wide range of stakeholders including government decision-makers, energy sector actors, academia as well as civil society and other interested stakeholders.

Registration for the webinars is now open.

Introduction to green finance and green bonds – 24 March Register now

Government bonds issuance to support national green programmes – 7 April Register now

Green bonds issuance on national and municipal level to support just transition – 21 April Register now

Green bonds supporting investments in sustainable buildings – 5 May Register now

Green bonds supporting investments in the energy sector – 19 May Register now

Setting up an ESG (Environment, Social, Governance) strategy and including ESG-aspects in financial operations – 2 June Register now

Source: Energy Community

Experience That Pushes the Boundaries

Foto: Bojan Džodan
Photo: Bojan Džodan

A short trip by electric car around Serbia in 2022 should not be a problem, especially considering that this type of transport is highly developed in other European countries. We did a little experiment, and first-hand impressions follow. I set off on a journey in a world champion, an elegant and fast Jaguar, which has not only a range of less than 400 km in city conditions but also a battery that you can charge with a power of 100 kW. This information is very important for those who are considering buying an electric vehicle and have a sufficiently large purchasing power and a developed awareness of the environment. Right at the beginning, I want to mention that there are several fast chargers installed in Serbia that are in the network of charge&GO and that this company announced that it would install a significant number of fast chargers in the first half of this year.

Our leading actor, the Jaguar I-Pace, is more than four and a half meters long and over two meters wide. It is very stable because the batteries are placed “in the floor” of the vehicle, and the trunk is slightly raised and shallower, but quite a decent size, precisely because of the position of the batteries. When designing, they considered the aerodynamics, so this model has a tunnel that connects the radiator grille and the cut part on the hood as in race cars. Overall, the Jaguar I-Pace is spacious, very agile, has excellent response, is easy to drive, and has parking assistance that works perfectly.

With this kind of foreknowledge, i decided with great enthusiasm to check what it would look like if the proud owner of an I-Pace model should arrive at a business meeting in Niš.

My new colleague Milica and a great photographer, kept me company. Without them, this adventure would not be complete. Of course, we did not even think we would surpass our friends Andrej Kulundžić or Mladen Alvirović, who ruled this genre without peers. We are a completely different team because of the two of us. Surely you have not seen many girls participate in this activity, which traditionally belongs to the male population.

Considering the current restrictions, namely the insufficient number of fast chargers, we had to plan this venture precisely, considering that the electric car’s range varies considerably depending on whether it is driven in the city or on the open road.

During the first day, we drove through Belgrade and did not encounter any obstacles. Every busy woman, a mother with children or a girl who leads an intense social life, can be a proud owner of an electric Jaguar without any problems, without thinking for days about charging the vehicle, even in winter conditions when battery efficiency drops by some 30 percent. In urban conditions, your best friend is the regenerative energy that recharges the batteries with each release of gas, which means that city crowds and “go-stop” driving finally have their advantages.

We did not test the speed of this vehicle in the city, but it turned out exceptionally well on the highway. Regardless of the current winter conditions, there is no problem when you drive a four-wheeler with the “Car of the Year” award. Of course, to reduce battery consumption, you need to turn off the air conditioning. The advantage of this beauty is that it will successfully warm you up in the winter days even when the air conditioning is not switched on, and we can confirm it.

We decided to take the first break for coffee and croissants at the Gazprom Petrol gas station in Velika Plana, on the Belgrade-Niš highway, because one of the fast chargers is located there. While we drank coffee, answered emails, and made several calls, we recharged the battery to 93 percent and carelessly continued our journey to Niš.

It turned out that the coffee break, and the recharging of the battery, was a good idea because an unexpected thing happened to us on the charger owned by the PE “Roads of Serbia”. We had a little more than 10 percent of the battery, which, fortunately, more precisely with good strategic planning, remained at the moment when, for some reason, the charger did not recognize our car, so we could not recharge. That was already the reason for the tension in the car to increase slightly, so we were already thinking about returning to Belgrade.

However, we also tried to see an alternative. We researched where there are at least slow chargers in Niš to partially recharge the battery during the meetings if we happen to be “not recognized” again by the charger located on the highway in the opposite direction. We found ourselves in an awkward situation in Niš because not everything is exactly as the Almighty Google says. Namely, hotels that should have chargers for electric cars do not have them, so we additionally spent the battery driving from one hotel to another until we remembered that ProCredit Bank in Niš has its slow charger. Thanks to the friendly staff of the bank, we managed to recharge the battery for about ten percent completely free of charge, which meant a lot to us at that moment.

Photo: Bojan Džodan

We have learned from this situation: you should always check by phone whether these chargers exist; otherwise, you will waste your battery unnecessarily looking for them. The second and more important lesson would be to summarize: rely solely on reliable charger maps that are part of the application.

After the meetings, we headed slowly towards Belgrade. The first stop was at the fast charger rest area near Nais, right after the Gazprom Petrol gas station. This time we were lucky because the charger “recognized” us, and we were able to fully recharge the battery, without any difficulties, up to 97 percent.

Although my companions secretly complained that we were waiting so long, I also kept silent on my own; more precisely, I ensured our return to the charger in Vrčin without stress. In addition, my “experiment” succeeded – we arrived from Nais to Vrčin without additional charging! Although it was not full, this electric four-wheeler arrived in Belgrade without any problems and with another 11 per cent of the remaining battery. If we convert it into kilometers, it is about thirty kilometers, which was quite enough for me to get to my apartment on Autokomanda.

The absence of engine hum and the perfect comfort of the leather seats gave the additional atmosphere on this trip. Jaguar I-Pace also features an excellent Meridian sound system and two screens – the upper one with the Infotainment system, where you can find all the necessary information, including a display of the current battery capacity in the MyEV option. You can choose between three driving modes: ECO, NORMAL and DYNAMIC, which also adjusts the ambient lighting from soothing blue or green to red, and by switching to DYNAMIC, the sound is slightly enhanced. In this model, you sit low, just like real sports cars, and the visibility is satisfactory. Driving an electric car all day is not strenuous, which means that, for example, there is no excessive brake use because you can slow down with good control of the accelerator pedal, which contributes to optimal battery consumption.

Considering that i had the opportunity to drive several electric cars on shorter distances than this trip, i must admit that i am thrilled with the Jaguar I-Pace. I was able to drive 130 km/h on the highway and cover about 200 km without any problems, yet I am not cold, which has always been my fear. Somehow, before, I always drove electric cars in extreme conditions. Still, Jaguar lived up to all expectations.

Thanks to the development of the charge&GO charger network, which will receive a significant increase in the number of installed fast chargers this year, we know that driving an electric vehicle will be much safer, easier, and simpler!

Until then, don’t forget to plan your trip in an electric vehicle on time and be sure to drive them in ECO mode. If you decide on the royal brand, you won’t need many coffee breaks, and those breaks will probably be shorter!

Prepared by: Nevena Đukić

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

Oil Market Report Highlights – March 2022

Foto-ilustracija: Unsplash (Erik Mclean)
Photo-illustration: Pixabay

The IEA Oil Market Report (OMR) is one of the world’s most authoritative and timely sources of data, forecasts and analysis on the global oil market – including detailed statistics and commentary on oil supply, demand, inventories, prices and refining activity, as well as oil trade for IEA and selected non-IEA countries.

Surging commodity prices and international sanctions levied against Russia following its invasion of Ukraine are expected to appreciably depress global economic growth. As a result, we have revised down our forecast for world oil demand by 1.3 mb/d for 2Q22-4Q22, resulting in 950 kb/d slower growth for 2022 on average. Total demand is now projected at 99.7 mb/d in 2022, an increase of 2.1 mb/d from 2021.

The prospect of large-scale disruptions to Russian oil production is threatening to create a global oil supply shock. We estimate that from April, 3 mb/d of Russian oil output could be shut in as sanctions take hold and buyers shun exports. OPEC+ is, for now, sticking to its agreement to increase supply by modest monthly amounts. Only Saudi Arabia and the UAE hold substantial spare capacity that could immediately help to offset a Russian shortfall.

Global refinery throughput estimates for 2022 have been revised down by 860 kb/d since last month’s Report as a 1.1 mb/d reduction in Russian runs is not expected to be fully offset by increases elsewhere. In 2022, refinery intake globally is projected to rise by 2.9 mb/d year-on-year to 80.8 mb/d. Despite a downgrade to demand, product markets remain tight with further stock draws expected throughout the year.

OECD total industry stocks were drawn down by 22.1 mb in January. At 2 621 mb, inventories were 335.6 mb below the 2017-2021 average and at their lowest level since April 2014. Industry stocks covered 57.2 days of forward demand, down by 13.6 days from a year earlier. Preliminary data for the US, Europe and Japan indicate that industry stocks decreased by a further 29.8 mb in February.

As this Report went to print, ICE Brent oil futures slid to around $100/bbl after touching an intraday high of nearly 140 dollars /bbl 8 March. Prices jumped from 90 dollars/bbl in early February following the invasion of Ukraine and as supply concerns mounted. Prices have eased again on economic concerns, surging Covid cases in China and traders reducing positions due to extreme volatility.

You can read the whole report HERE.

Source: IEA

The Fieragricola and Informatore Agrario Innovation Awards Have Been Announced

Foto: You Tube sreenshot / Réussir Vigne
Photo: Antonio Carraro S.p.A.

The winners of the fourth edition of the Italian Agriculture Innovation Awards were announced today. From agricultural robots to hybrid tractors with reversible drive through to food and feed with natural antioxidant properties for dairy cattle, these are just some of the technologies that will be included in the innovation list at the 115th edition of Fieragricola, to be held from 2nd to 5th March.

Twenty-three innovations were selected to each win an Innovation Award – six gold and 17 silver leaves, plus 17 recommendations – assigned this year by VeronaFiere and Edizioni L’Informatore Agrario to products developed in the agricultural sector and launched onto the market in 2021, subdivided into four categories: agricultural mechanics, agropharmaceuticals and fertilisers, zootechnics and renewable energy.

“Environmental and economic sustainability are the two selection parameters regarding innovative technologies applied to agriculture,” said Antonio Boschetti, editor-in-chief of the weekly journal L’Informatore Agrario.

The primary sector is responding to the technological challenge and is marching towards a future that is green in both name and deed in order to implement a real agriculture 4.0 which, in Italy,” Boschetti concludes, “represents a 450-million-euro business with a growth rate of 22 per cent.”

The award-winning products include: the hybrid tractor, which combines an electric motor with a traditional internal combustion engine; the solar-powered agricultural robot for sowing and mechanically weeding crops; sprayers equipped with sensors able to detect the presence and consistency of foliage and adapt the flow of plant protection product thus limiting its dispersion into the environment and a header for sunflowers that can cut the stubble at any height to optimise the separation of the root from the stem and seeds.

There are also several innovations relating to animal management and welfare, such as the UV-C disinfection system to improve hygiene at the suckling station for calves; the ultrasonic transducer for cleaning water for poultry; the feed line for dairy cows that reduces methane emissions from cattle by 17 per cent; the ventilation system with cold air regeneration for stables and dietary feeds to reduce the risk of milk fever in cows.

Giovanni Mantovani, Director General of VeronaFiere, said: “The Fieragricola Innovation Awards intercept the ongoing evolution within the sector which, with about 900 thousand employees and an added value of almost 33 billion euros, represents two per cent of the national GDP. The 23 Innovation Awards assigned this year prove that Italian agriculture is moving towards a virtuous circular economy capable of producing value.” The 4th Fieragricola Innovation Awards ceremony will be held on Wednesday 2nd March at 1.30 pm in the Nutrition and Sustainable Defence Forum Area (Hall 7).

Source: Fieragricola

Conference “RES Serbia 2021”

Foto: OIE Srbija
Photo: RES Serbia

The first conference dedicated to green energy, “RES Serbia 2021”, organized by the Renewable Energy Sources of Serbia Association, supported by the European Bank for Reconstruction and Development (EBRD), was held on September 15 at Metropol Palace Hotel in Belgrade. In the welcoming speech, the participants were addressed by Zorana Mihajlović, Minister of Mining and Energy, and Grzegorz Zieliński, Director of EBRD’s Energy Europe team.

“Emissions of harmful gases must be cut in half in the next decade. By 2050, fossil fuels must be phased out to meet the goals set by the Paris Agreement. Huge, multi-billion investments will be needed, but the benefits of these investments will also be huge,” Zieliński said.

Minister of Mining and Energy, Zorana Mihajlović, pointed out that the energy transition process has been initiated through the legal framework. 

“We have to be fast and efficient when it comes to decarbonization, regardless of the resistance we feel. If we do it slowly, step by step, and replace the dirty power plants that use the worst coal and have enough capacity to use renewable sources instead, we can become an important player on the market in this part of Europe. Our goal is to have at least 40 percent of the energy obtained from RES by 2040 and more than 50 percent by 2050. We also expect that emissions of harmful gases in the next ten years will catch up with the EU median. We are facing serious challenges, but we are doing everything together with local governments, industry, and people, which is validated through projects aimed to increase energy efficiency and use of solar panels,” stated Ms Mihajlović, announcing that the first biddings will be held in December.

Energy transition depends on regional cooperation 

Energy transition and decarbonization, production of electricity from coal, and emissions of harmful gases exceeding those in the European Union were the topics discussed at the first panel, moderated by Maja Pokrovac from RES Croatia. According to Janez Kopač, Director of the Energy Community Secretariat, it is necessary to tax carbon dioxide (CO2 ) emissions to have a permanent source of funds. However, he is aware that this will be a significant social problem that needs to be solved as soon as possible. 

“The fact that the European Union expects the Balkans to keep the same pace of transition, and we have to be aware that help is needed since the budgetary capacities are not the same. To achieve the target, emissions must be taxed and those funds, along with local incentives, should be used for the transition”, Kopač explained. Exchange of experiences and regional projects are essential in this transition process. Jovanka Atanacković, State Secretary at the Ministry of Mining and Energy, explained that good examples from the region have helped Serbia create new laws “All bylaws will be passed by the end of October. By the end of February 2022, we will have a three-year plan for auctions, and they will be electronic thanks to the software we are working on,” Atanacković pointed out. Viktor Andonov, Advisor to the Prime Minister of North Macedonia, and WindEurope CEO Giles Dickson visiting Serbia for the first time, also spoke at the panel.

Photo: RES Serbia

Challenges and obstacles in the development and construction of RES projects

According to the data available, in 2020, renewable energy sources in the European Union generated more electricity than fossil fuels. Emanuel Van Vyve, Business Development Director of Elicio, Marko Liposcak, Business Development Director of Enlight, Bonnie Norman, President at E3 International and Aleksandar Jakovljević, Strategic Director of EPS Serbia, talked about the present position of Serbia and goals achieved.

As Emanuel Van Vyve pointed out, investors are faced with a highly complex process of obtaining construction permits for wind farms and strict requirements when obtaining work permits. He sincerely hopes that this system will be improved soon. 

Marko Liposcak, the director of business development at the Israeli company Enlight, explained that the Kovačica wind farm is a pioneering endeavour in our country and that will be expanded soon, while the procedure for obtaining permits for the Pupin project is in progress. “Previous experiences have helped us in the process of obtaining permits, which shows that we have seen some progress in that respect, and we are optimistic when it comes to the development of RES projects in Serbia. Placing energy in the grid is a new challenge for us at the moment.”

According to Aleksandar Jakovljević, the transition to renewable energy sources in Serbia is realistic and sustainable and clearly defines our role in the process of decarbonization and transition. 

“Increasing renewable energy sources is absolutely necessary. A balance must be created along with a process that could be sustainable for everyone”, says Jakovljević.

Prepared by: Milica Radičević

Read the story in the new issue of the Energy portal Magazine RECYCLING.

Adoption of the RES Law is a Major Step Forward

Foto - ilustracija: Pixabay
Photo: Courtesy of Dragoljub Cibulić

The recently adopted Law on Renewable Energy Sources has brought many positive changes and drew the attention of foreign and domestic investors. Citizens and businesses were given the opportunity to become prosumers or self-consumption generators, establish energy communities, and auctions were introduced to grant subsidies to investors. This Law creates conditions for Serbia to use its great potential of solar energy, thereby attracting new investments and contributing to the reduction of environmental pollution. We discussed current developments and challenges with Dragoljub Cibulić, senior partner in the BDK Advokati, that has over 17 years of experience advising clients on some of the most important renewable energy projects in Serbia, Bosnia and Herzegovina, and Montenegro.

EP: What is your take on the current delay in the final phase of the preparation of regulations that would enable the implementation of the Renewable Energy Sources Act (RESA) and the organization of the first auctions?

Dragoljub Cibulić: Unfortunately, the events in the last few months have sent a negative signal to all participants in the renewable energy sector. After a strong positive momentum in the first half of 2021, which resulted in the adoption of the RESA and the first set of by-laws, and the preparations for the first auction for market premiums, the delays in the drafting of the remaining by-laws, and the disagreement of the major players on the remaining outstanding issues in the regulatory framework have put a big question mark on the new investment cycle in the renewable energy projects in Serbia.

The remarks made by EPS and EMS are not ungrounded but are based on the assumption that, in the next few years, Serbia will develop a huge capacity of renewable energy sources and ignore the fact that EMS, Elektrodistribucija Srbije, the Ministry of Mining and Energy and the Energy Agency of the Republic of Serbia still have important levers at their disposal to control the renewable energy investment cycle, e.g. through procedures for the issuance of energy permits, connection approvals, setting the market premium quotas, and determining the maximum purchase price.

EP: Bearing in mind that EPS and EMS are asking for RESA amendments, while the Ministry and international institutions hold that implementation must not be delayed further, what do you think is the solution to overcome this problem?

Foto-ilustracija: Unsplash (Sungrow Emea)

Dragoljub Cibulić: The solution, as always, lies in achieving a compromise solution that would, on the one hand, enable further smooth development of the renewable energy sector and commencement of a new investment cycle in 2022, and which, on the other hand, would not jeopardize the stability of the energy system and the operation of the transmission and distribution system.

Technological development and maturity of the renewable energy sector shift the focus from the incentives to the consequences that the sector’s rapid development has on the transmission and distribution system and the stability of the entire energy system. The transmission and distribution system must undergo a strong transformation to respond to the inevitable changes. The operators of these systems should not shy away from that process since those will be essential parts of the new energy system.

To fully include RES in the energy system, developing new production and storage capacities is crucial to enable adequate balancing of RES production. It is vital that the Government and the Ministry select adequate project development structures and independent and experienced teams for the implementation of these projects without delay, which should enable these capacities to be online as soon as possible.

EP: If we exclude the problems, what are the advantages of the legislative framework consisting of 4 laws that were adopted in early 2021?

Dragoljub Cibulić: The very fact that these acts have been adopted is a big step forward. In addition to laying the foundations for the further development of RES production capacities, it seems to me that the greatest advantage and achievement of the new regulatory framework is enabling end consumers to be active participants in the electricity market, through the concept of prosumers, more flexible electricity supply through direct contracting with producers, aggregation of consumption, and the establishment of mechanisms for the promotion and financing of energy efficiency projects.

Interviewed by: Danijela Isailović

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

ABB to Automate Bioplastics Plant to Help Meet the Growing Global Demand for Sustainable Materials

Photo: ABB
Photo: ABB

ABB has been awarded a major contract by NatureWorks, the world’s leading manufacturer of polylactic acid (PLA), a low-carbon bioplastic made from renewable agricultural resources, to automate their new, greenfield plant in Thailand, converting sugar cane to the polylactic acid (PLA) biopolymer, Ingeo™.

The new plant in Thailand, will ferment and distill plant-based sugars – in a process similar to making beer or wine – converting the sugars first to lactic acid, then lactide and then polymerize them into Ingeo. In the new site, these three separate production processes will be fully integrated, resulting in significant improvements in energy and production efficiency. In addition, the integration of the fermentation phase will secure the supply of lactic acid. The Thailand facility will use sugarcane as feedstock and is set to produce 75,000 tons of sustainable plastic per year when fully operational. The anticipated projected startup for this greenfield facility is in the second half of 2024.

ABB’s scope of work is a two-part order including a FEED (front end engineering design) study followed by detailed automation project execution, with ABB acting as the Main Automation Contractor. ABB will deliver the hardware, software, control room design solutions, engineering, and site support to fully develop NatureWorks’ greenfield system. ABB’s market leading distributed control system Ability™ System 800xA will maximize plant efficiency and reliability through automation. Leveraging this technology, ABB will integrate inputs from all key systems into one single user-friendly overview. As a result, operators will be able to utilize data insights from all areas of the plant, delivered in real time, to drive efficiency, reduce risk and ensure production optimization.The project will apply State Based Controls (SBC), enabling operators to take fewer interactions to start up a unit and reduce risk by having access to the right information at the right time. In addition, ABB’s automated engineering batch application tool will be implemented for this project.

Part of NatureWorks’ global expansion plan, the plant will help meet the growing global demand for sustainable materials. Bioplastics today represent less than 1 percent of all plastic produced globally but production is expected to grow over 260 percent between 2020 and 2026.

Ingeo, an innovative material with unique properties that all begin with greenhouse gases, is an eco-friendly, biobased material used in a wide-range of plastic and fiber products from compostable food packaging – coffee capsules, tea bags, food containers – to 3D printing filament, diapers, and even refrigerator liners. Compared to traditional fossil-based polymers, manufacturing Ingeo produces approximately 80 percent less greenhouse gases and uses 52 percent less non-renewable energy.

Source: ABB

Today’s Energy Crisis Makes Supporting Clean Energy Start-Ups More Important Than Ever

Foto-ilustracija: Pixabay
Photo-illustration: Pixabay

Periods of energy disruption, like the one we are seeing today, offer an opening for disruptive technologies. A helping hand for clean energy start-ups can help respond to the current energy crisis while also accelerating progress towards climate targets. A new IEA report released today, on How Governments Support Clean Energy Start-Ups, provides a timely review of the different approaches taken in countries around the world as they seek to become home to the next Tesla, BYD or Vestas.

Money is now pouring into small companies with big ideas for improving our energy systems and reducing greenhouse gas emissions. Innovators including Addionics, Evage, H2Pro, Kula Bio and PassiveLogic have raised more than  25 million US dollars each since the start of 2022. New technologies are coming from a wide range of different research efforts and countries. Energy technologies are becoming more digital, electronic, consumer-focused and modular. Some of the world’s brightest and most creative minds are engaged in building the cornerstones of tomorrow’s clean energy system.

In many cases, measures and programmes put in place by governments have laid the foundations for success in this sector, which is sometimes referred to as “cleantech” or, more recently, “climate tech”. Public sector support to help start-ups get new clean energy technologies to the market has risen sharply since the Paris Agreement was signed in 2015.

These support measures are important – not because civil servants are good substitutes for venture capitalists, but because governments possess a range of unique resources that energy technology start-ups need for success. Drawing on 14 detailed country case studies and 23 in-depth interviews, the new IEA analysis highlights the ways in which governments have stepped in. This includes, for example, providing access to patient providers of capital and world-class laboratories, mentoring and peer-to-peer networking, and targeting technologies or groups that can face additional obstacles to break through, including female entrepreneurs.

The examples in the new report come from a wide range of countries: Chile, India, Morocco and Singapore have inspiring policy designs to share, alongside examples from Canada, Germany, Norway, Sweden, the United Kingdom, the United States and others.

You can read the whole article HERE.

Source: IEA

As Climate Changes, World Grapples With a Wildfire Crisis

Foto-ilustracija: Unsplash (Gwendel Bar)
Photo-illustration: Pixabay

Whether it’s the Australian coast or the rainforests of Brazil, unrestrained wildfires – shrouded by black smoke and punctuated by the crackle of burning vegetation – have laid waste to some of the world’s most-iconic landscapes in recent years.

These blazes, directly and indirectly, impact millions of people and myriad habitats globally – and they’re becoming more common.

Record-breaking temperatures in 2021 increased the frequency and intensity of wildfires and their associated risks to human and environmental health, according to Spreading like Wildfire, a new report from the United Nations Environment Programme (UNEP) and GRID-Arendal.

“We need to better understand the nature of the threat in each locality and develop more effective wildfire risk reduction strategies and policies,” says Andrew Sullivan, co-editor of the report and Research Team Leader of the Commonwealth Scientific and Industrial Research Organization.

During the 2019–2020 wildfire crisis in Australia, nearly 3 billion animals were killed or displaced, while 100 plant species had their entire populations burned. In Brazil, wildfires reached a decade high in 2020, while Nepal endured one of the worst wildfire seasons ever in 2021.

Indirect threats include health problems associated with smoke, smog and greenhouse gas releases from burned natural landscapes. These factors may also cause disruptions to businesses, schools and transportation systems.

Altogether, the financial costs greatly exceed all spending on wildfire management, according to the report. Minimizing these threats and costs requires governments to shift their focus to planning, prevention and preparedness.

“Commonly, more than half the expenditures related to wildfires are for response, while planning typically receives just 0.2 percent of the total budget,” the report said.

It proposes reconfiguring spending to “1 percent for planning, 32 percent for prevention, 13 percent for preparedness, 34 percent for response, and up to 20 percent for recovery” as a starting point to manage wildfires’ direct and indirect threats.

Photo-illustration: Pixabay

Climate crisis and conflagration

Human-caused changes to climate, land management and demographics are fanning the flames, prompting a combination of dry lightning, droughts, lower humidity, stronger winds and warmer temperatures that can prolong natural fire seasons.

“The wildfires we are witnessing in the last few years are events of tremendous intensity and energy with an extreme destruction capacity,” says Imma Oliveras, one of the report’s authors and a Lecturer at the University of Oxford. “We have profoundly altered both the climate and the landscapes in which fires occur, so nowadays [wildfires] are more intense [than] natural fires.”

Wildfires are also increasingly occurring in areas previously not prone to blazes, such as rainforests, permafrost and peatland swamps. Russia, Tibet, northern India, the Arctic and Amazon are among the recent unsuspecting victims of record-breaking wildfires.

According to Johannes Kieft, an author of the report who leads UNEP’s REDD+ work in Indonesia, “this is caused by increased use of these ecosystems for agriculture or exploration in combination with global warming.”

Post-fire crises

The impacts of wildfires, however, don’t end once the last flame is extinguished. The harmful wedding of charred habitats and lingering smoke is a notable danger to human and environmental health.

Estimates from studies in 749 cities across 43 countries suggest that wildfire smoke and air pollution causes over 33,000 deaths annually and impact the health of hundreds of thousands of people.

“The area actually burned is often relatively small compared to the total area that [a] wildfire may impact,” says Sullivan. “For example, the smoke from a 10,000-hectare wildfire could affect people living in an area 10 to 15 times that – people who may never even see the flames.”

In 2015, haze from wildfires in Indonesia resulted in 19 deaths and more than 500,000 cases of acute respiratory infections. Health systems in many areas are poorly equipped to manage health crises at this scale. Haze from the Indonesia fires also forced 5 million children to miss school that year.

Photo-illustration: Unsplash (Issy Bailey)

“We also need to accept that, regardless of what we do, there will always be a residual risk that we have to learn to live with.”

Even with urgent action, the number of wildfires globally is expected to increase 50 percent by the end of the century.

Mike Flannigan, Research Chair at Thompson Rivers University and an author of the report, says that ecosystem damage caused by wildfires can amplify the impact of natural events. Major storms in the north-west of Canada and the United States in late 2021 caused fatalities, evacuations and transportation shutdowns, and wildfire damage from the preceding summer was a likely enabling factor.

“We see pictures of those areas where the fire crossed – [there are] mudslides, debris flows because there’s no vegetation to absorb and stop the water from flowing downhill,” says Flannigan. “Sometimes, the secondary effects are as bad as the fires.”

Peatland problems

Kieft’s work addresses drivers of deforestation and aims to improve peatland fire management. Indonesia has an estimated 22.5 million hectares of peatlands.

Because peatlands comprise thick layers of partially decomposed organic material formed over thousands of years, they release carbon dioxide, nitrogen oxide and methane on a large scale when burned. These in turn reinforce the climate crisis, making wildfires and other natural disasters more likely to occur.

“It is a vicious cycle of land clearing, wildfire, greenhouse gas emissions and changing climate,” Kieft says.

Fire suppression effectiveness and capacity

Bridging the divide between research, policy and action won’t happen overnight. Greater emphasis on – and engagement with – research and predictive models can bolster fire suppression effectiveness, said the report.

The Pau Costa Foundation, based in Spain, is one organization that champions collaboration by acting as a hub between universities, institutions and government agencies worldwide.

“[This partnership is] crucial to train the first responders and to prepare the population to change their perception on wildfires,” says Jordi Vendrell, the foundation’s CEO. “The main challenge is to share the results of science and the first responders’ lessons learned with legislators and translate all these experiences into proper legislation.”

While developments in training, science and technology can improve wildfire suppression effectiveness, expertise and knowledge can improve capacity.

Photo-illustration: Pixabay

“There is much that we can all learn from the experiences and knowledge of other countries and regions, including indigenous and traditional owners,” says Sullivan, the co-editor of the new UNEP and GRID-Arendal report.

Organizations such as the Pau Costa Foundation and Firesticks, an indigenous-led association based in Australia, prioritize education among young people and those living near or in fire-prone areas to reduce the potential of accidental ignitions.

“Indigenous fire is about burning in a way that supports healthy culture, ecosystems and society,” says Oliver Costello, an author of the report and Firesticks co-founder. “This knowledge can… reduce the negative impacts of wildfires and increase the positive impacts of intentional burning. A significant effort is required to empower and resource indigenous people to restore cultural practices to help overcome this legacy of colonial dispossession and mismanagement.”

Leadership on fire management

The United Nations plays a major role in addressing what the report cites as pivotal to wildfire prevention and preparation: formal and informal bilateralism and multilateralism.

Reducing global wildfire risks is a key component of the 2030 Agenda for Sustainable Development, the Sendai Framework for Disaster Risk Reduction, the UN Decade on Ecosystem Restoration and the UN-REDD Programme, the UN’s flagship partnership on forests and climate.

The UN also broadly focuses on disaster risk reduction, including wildfires. UNEP and the UN Office for the Coordination of Humanitarian Affairs have a Joint Environment Unit responsible for international coordination on environmental emergencies and a post-conflict and disaster programme to improve risk reduction, readiness and response.

Living with fire

Ultimately, successful wildfire management will not mean the total elimination of fire. Natural fires are an essential part of many ecosystems and communities. UNEP and GRID Arsenal’s work is helping communities to be better prepared and minimize the risks and damage to nature, people and climate as we learn to live with fires.

Source: UNEP

Greenpeace Calls for Unity and Action as Delegates Arrive at Biodiversity Meeting in Geneva

Photo-illustration: Pixabay
Photo-illustration: Unsplash (Gouthaman Raveendran)

Greenpeace calls for action to increase land and sea protection to at least 30 per cent by 2030 with clear funding and implementation, and to recognize and strengthen the rights of Indigenous Peoples and local communities, as delegates gather at a pre-meeting for this year’s Convention on Biological Diversity (CBD) COP15 to be held in Kunming, China.

This is the first CBD meeting since the latest Intergovernmental Panel on Climate Change (IPCC) report that highlighted biodiversity’s key role in response to climate change. At the same time, governments are now negotiating a new Global Ocean Treaty in New York. Together, these meetings are critical opportunities to halt global biodiversity loss.

“Biodiversity is at the core of our planet’s resilience to climate change. The latest IPCC report highlights that clearly. CBD COP15 urgently needs to take bold action to protect our ecosystems. We know healthy ecosystems sustain all life on Earth. We know policies will fail if they don’t put Indigenous Peoples and local communities at the centre of decision making. We know that our best bet is protecting at least 30 per cent of the land and at least 30 per cent of the ocean globally by 2030,” said Greenpeace International senior biodiversity campaign strategist An Lambrechts.

“Geneva will be the first face-to-face meeting since the COVID-19 pandemic disrupted the CBD process. It will also be the last meeting ahead of COP15 in Kunming. The meeting carries a daunting and critical task of paving the ground for final negotiations. Countries should not only advance ambitious targets but also speed up the discussion on implementation and finance. Over the last two years, the world has been anxiously expecting a deal that will reverse the rampant destruction of biodiversity. The Geneva meeting has to demonstrate that this waiting is still worthwhile”, said Greenpeace East Asia senior policy advisor Li Shuo.

Photo-illustration: Pixabay

On February 28, the IPCC released its latest report, which highlighted the central role that global biodiversity protections need to play in our future, if we take immediate steps to protect biodiversity. The CBD COP15 is the chance to do that. The 30×30 (“thirty-by-thirty”) target to protect 30 per cent of the land and 30 per cent of the ocean by 2030 is scientifically rooted in ecosystems’ ability to bounce back if given the chance. And as the rightful stewards of the land, Indigenous Peoples and local communities need to be central in policy, implementation, and funding.

Last year, the Kunming Biodiversity Fund was established by China with an initial pledge of USD 230 million, presenting an initial step to finance biodiversity protection. This puts finance on the table, but thus far wealthy, donor countries have been quiet about their commitments to finance biodiversity protection. In many cases, wealthy donor countries have profited wildly from the destruction of ecosystems around the world. Now, with biodiversity in a more precarious state than ever, they must start to put their money where their mouths are and start financing biodiversity protection.

Source: Greenpeace

Green Hydrogen Needs Industrial Policy Making and Certification

Photo-illustration: Pixabay
Foto-ilustracija: Pixabay

With its ability to decarbonise hard-to-abate sectors like chemicals and steelmaking industries, green hydrogen is expected to be in high demand as countries are racing to achieve their net zero targets. However, the current green hydrogen market is at an infant stage and more needs to be done, especially from the policy makers’ side, to maximise green hydrogen’s impact in the decarbonising of the industrial sector and end-use sectors as a whole.

To drive concrete solutions and policy frameworks that can scale up green hydrogen use in industry and establish a credible market, the International Renewable Energy Agency (IRENA) and IRENA Coalition for Action each released a new publication: Green hydrogen for industry: A guide to policy making and Green Hydrogen Certification Brief, respectively.

“These new reports are particularly opportune because green hydrogen needs rapid policy action to ensure and maximise its contribution to the energy transition. As we know, IRENA’s World Energy Transitions Outlook’s 1.5°C Scenario projects that hydrogen will provide around 10 percent of the necessary greenhouse gases reduction by 2050,” said Rabia Ferroukhi, IRENA Director-Knowledge, Policy and Finance Centre, in her opening remarks of the Policy Talks that presented the reports on 8 March 2022. 

“And why are we focusing on industry?” asked IRENA’s expert Emanuele Bianco, while presenting the new guide to policy making report. “Because the reality today is that the industrial sector is already a major consumer of hydrogen, but we need to shift from fossil fuels-based to renewables-based hydrogen. This calls for urgent industrial policy support, and high priority for green hydrogen policy should be placed on the industrial sector.”

Similarly, the European Union (EU) sees green hydrogen as a key option for industry in a move away from imported natural gas. Representing the European Commission, Ruud Kempener, Policy Officer, said that the Commission targets 50 per cent for green hydrogen consumption in industry by 2030. The current target is 5.6 million tonnes of green hydrogen by 2030, but the EU seems to be able to exceed it by producing 10 million tonnes domestically and importing additional 10 million tonnes.

Such a target—in the EU alone—potentially leads to large demand centres that can kickstart economies of scale in green hydrogen. However, the use of green hydrogen in industry is still hampered by cost, technical barriers, lack of a market for green materials and products, lack of sufficient ambitious policies, and carbon leakage risks.

IRENA’s new report suggests that green hydrogen industrial policies start with the introduction of decarbonisation strategies and tailored sub-sector planning. Prioritisation, carbon pricing, and support schemes are more urgent than measures to support green product market creation.

But boosting the market requires careful implementation as well. This is why members of IRENA’s Coalition for Action have highlighted the importance of tracking systems for the development of the green hydrogen sector. 

Lead-authors of the Green Hydrogen Certification Brief, and members of the  Coalition’s Decarbonising End-Use Sectors Working Group—EKOenergy, Siemens Gamesa Renewable Energy, ACCIONA Energía, and IRENA—jointly highlighted during the Policy Talks that the establishment of a national, regional and international market for green hydrogen depends on acceptance of tracking instruments certifying its origin.

In this new brief, the Coalition analyses a set of technical considerations to create certification schemes and lays out the various multiple benefits of such schemes. The brief also offers nine key recommendations to support policy makers in advancing  certification schemes and making green hydrogen a tradable commodity to accelerate the energy transition.

The Policy Talks concluded that the industrial use of green hydrogen will continue to grow, with demand centres emerging in different parts of the world. Both the public and private sectors need to tap into this opportunity to decarbonise industries, and achieve inclusive, sustainable economies.

Source: IRENA

CO2-free Driving Pleasure in all Weather Conditions: The BMW iX5 Hydrogen in Final Winter Testing

Photo: BMW Group
Photo: BMW Group

The BMW iX5 Hydrogen is currently undergoing a demanding programme of testing in extremely challenging weather conditions. It is all part of final winter testing for the car on public roads and at the BMW Group’s testing centre in Arjeplog, northern Sweden. The integrated functional testing and validation of the fuel cell system, hydrogen tanks, peak power battery and central vehicle control unit have confirmed that this additional CO2-free mobility option can also be relied on to provide sustainable driving pleasure with high levels of comfort and unrestricted performance in extreme sub-zero temperatures.

The tests close to the Arctic Circle see the BMW Group pressing ahead with its development process for the BMW iX5 Hydrogen. The company will produce a small series of the model later in the year and is also committed to helping expand the network of hydrogen fuelling stations. “The winter testing under extreme conditions clearly shows that the BMW iX5 Hydrogen can also deliver full performance in temperatures of -20°C and therefore represents a viable alternative to a vehicle powered by a battery-electric drive system,” says Frank Weber, Member of the Board of Management of BMW AG, Development. “For us to be able to offer our customers a fuel cell drive system as an attractive sustainable mobility solution, a sufficiently extensive hydrogen infrastructure also needs to be in place.”

BMW iX5 Hydrogen: hallmark BMW dynamics, range and everyday usability all year round.

In these test runs on the ice and snow around Arjeplog, the BMW iX5 Hydrogen is busy demonstrating how reliably, comfortably and powerfully its hydrogen fuel cell drive system can already meet the mobility requirements of everyday life. After racking up hundreds of sessions on test rigs and in-depth field testing on the road, this adds another chapter to its development story.

The evidence is there for all to see: here, in this extreme cold, the hydrogen fuel cell drive system displays the same everyday usability as a conventional internal combustion engine. Full system power quickly comes on tap. Even in these freezing conditions, the drive system continues to offer its full operating range. And replenishing the hydrogen tanks takes only three to four minutes, even in the depths of winter. “The hydrogen fuel cell drive system combines the best of both drive worlds, regardless of the time of year and outside temperatures: it offers the locally emission-free mobility of an electric vehicle and the unrestricted everyday usability – including short refuelling stops – familiar from models with an internal combustion engine,” says Jürgen Guldner, Vice President of Hydrogen Fuel Cell Technology and Vehicle Projects at the BMW Group.

Photo: BMW Group

The drive system on board the BMW iX5 Hydrogen teams fuel cell technology with an electric motor using fifth-generation BMW eDrive technology. The hydrogen it uses as an energy source is stored in two 700-bar tanks made from carbon-fibre-reinforced plastic (CFRP). The fuel cell converts the hydrogen into electric power, generating output of 125 kW/170 hp. Plus, the electric motor can add the energy stored in a power battery to the mix. This battery is charged either through energy recovery or from the fuel cell. All of which means that system output of 275 kW/374 hp is available when the driver decides to explore the upper reaches of the car’s dynamic abilities. The only emission released by the fuel cell is water vapour. And its waste heat is harnessed particularly efficiently to warm the car’s interior.

Unique drive system meets all requirements.

The drive, energy storage and control systems all pass the ultimate test of endurance in the wintery surrounds of Lapland. Added to which, specially prepared ice surfaces and snow-covered roads offer the perfect conditions to test the integrated application of all the drive and chassis systems. This also encompasses the steering, springs and dampers, as well as the chassis control systems and the interplay of the friction brakes and deceleration by energy recuperation. Here again, the BMW iX5 Hydrogen is able to make its strengths count, as it also weighs less than a comparable battery-electric model.

The combination of fuel cell and peak power battery gives the BMW iX5 Hydrogen a globally unique drive system. Its technology has the potential to add another pillar to the BMW Group’s drive system portfolio for locally CO2-free mobility. BMW i – as a brand focused entirely on mobility producing zero local emissions – could in future offer vehicles with a hydrogen fuel cell drive system alongside its battery-electric models. This would allow it, most strikingly, to meet the mobility requirements of customers who do not have their own access to electric charging infrastructure, frequently travel long distances or desire a high degree of flexibility.

Source: BMW Group

RePower EU with Solar: The 1 TW EU Solar Pathway for 2030

Photo-illustration: Pixabay
Photo-illustration: Pixabay

Following on from their ‘toolbox’ on high energy prices in 2021, today the European Commission set out a highly anticipated RePower EU Communication that seeks to address the dual energy security and price challenges facing Europe right now.

As Europe stands in solidarity with the people of Ukraine, European Commission Vice-President Frans Timmermans presented an energy strategy that aims to disentangle Europe from Russian gas as soon as possible, while protecting citizens from painful – and increasing – energy price shocks.

Walburga Hemetsberger, CEO of SolarPower Europe said: “The EU needs to become independent from Russian gas and oil as soon as possible. Solar is set to deploy over 30 GW, including 1.5 million solar rooftops, by the end of 2022. With the right frameworks in place, 1 TW of solar capacity is within reach for Europe by 2030. European solar deployment has surpassed expectations year after year, succeeding in some of the most difficult market circumstances. We call on the European Commission to recognise the true power of solar, and set the ambition needed to achieve our climate and security goals.”

Commission proposals highlighted the role of rooftop solar in repowering the EU, aiming to install 15TWh of solar rooftops before the end of 2022. Including the rooftop solar goal, the RePower EU strategy sets out 420GW of additional EU solar capacity by 2030, bringing total solar installation in the EU to 565 GW.

SolarPower Europe’s business-as-usual, most-likely scenario already predicts 672 GW of EU solar by 2030. The necessary level of ambition through an accelerated, high scenario can achieve over 1 TW of solar in the EU by 2030.

In response to the European Commission’s proposals, and in recognition of the renewed geopolitical urgency of the renewables transition, SolarPower Europe has published a pathway to the solar TW level in Europe. The document presents market intelligence outlining the realistic scope of solar expansion, and sets out four policy asks to get there:

1. Multiply rooftop PV development through mandatory solar on new buildings, bans on fossil-fuel boilers, and significant investment.

2. Facilitate utility-scale development by freezing grid connection fees, and mandating member states to identify suitable solar PV sites, aiming to fast-track developments.

3. Pave the way for smart solar and hybrid projects using dedicated CEF-E and RRF funding, and a new EU Commission taskforce for hybrid projects access to flexibility markets.

4. Accelerate the deployment of EU solar PV manufacturing capacity with EUR 1bn de-risking funding from InvestEU & Innovation Funds.

Within RePower EU’s 420 GW solar goal, the proposals aim to frontload solar installation and increase deployment rates by 20 percent. An additional 80 GW of renewable capacity is set aside to accommodate higher production of renewable hydrogen.

Jorgo Chatzimarkakis, CEO of Hydrogen Europe said: “We welcome today’s communication of the European Commission which highlights how hydrogen can ensure clean energy independence. Hydrogenewables are the cornerstone of a resilient economy and energy self-reliance. It is ever more important to repower the EU by replacing, repurposing, and reinvesting.”

Annex 2 of the RePower EU Communication provides key principles for Member States when setting up infra-marginal profit fiscal measures. The guidance establishes that such measures should not continue later than 30th June 2022, and provides criteria to calculate the basis for such taxes.

Naomi Chevillard, Senior Policy Advisor at SolarPower Europe said: “Retroactive windfall profit taxes on revenues of renewables must be handled with great care: by legitimising retroactive interventions on market mechanisms, they create a precedent that could seriously hamper investment signals in renewables.”

“We welcome the common approach proposed by the European Commission and the clear time limit of 30th June 2022, which should ensure that the measures are limited in time, non-retroactive, and restricted to the extra profits. We call on the EU to ensure an increased scrutiny of the measures based on this guidance.”

Source: Solar Power Europe

REPowerEU: Joint European Action for More Affordable, Secure and Sustainable Energy

Foto-ilustracija: Pixabay
Photo-illustration: Unsplash (Quinten de Graaf)

The European Commission has proposed an outline of a plan to make Europe independent from Russian fossil fuels well before 2030, starting with gas, in light of Russia’s invasion of Ukraine.

This plan also outlines a series of measures to respond to rising energy prices in Europe and to replenish gas stocks for next winter. Europe has been facing increased energy prices for several months, but now uncertainty on supply is exacerbating the problem. REPowerEU will seek to diversify gas supplies, speed up the roll-out of renewable gases and replace gas in heating and power generation. This can reduce EU demand for Russian gas by two thirds before the end of the year.

Commission President Ursula von der Leyen said: “We must become independent from Russian oil, coal and gas. We simply cannot rely on a supplier who explicitly threatens us. We need to act now to mitigate the impact of rising energy prices, diversify our gas supply for next winter and accelerate the clean energy transition. The quicker we switch to renewables and hydrogen, combined with more energy efficiency, the quicker we will be truly independent and master our energy system. I will be discussing the Commission’s ideas with European leaders at Versailles later this week, and then working to swiftly implement them with my team.”

Executive Vice-President for the European Green Deal, Frans Timmermans said: “It is time we tackle our vulnerabilities and rapidly become more independent in our energy choices. Let’s dash into renewable energy at lightning speed. Renewables are a cheap, clean, and potentially endless source of energy and instead of funding the fossil fuel industry elsewhere, they create jobs here. Putin’s war in Ukraine demonstrates the urgency of accelerating our clean energy transition.” 

Commissioner for Energy, Kadri Simson, said: “Russia’s invasion of Ukraine has aggravated the security of supply situation and driven energy prices to unprecedented levels. For the remaining weeks of this winter, Europe has sufficient amounts of gas, but we need to replenish our reserves urgently for next year. The Commission will therefore propose that by 1 October, gas storage in the EU has to be filled up to at least 90 percent. We have also outlined price regulation, state aid and tax measures to protect European households and businesses against the impact of the exceptionally high prices.” 

Emergency measures on energy prices and gas storage

The Commission’s ‘Energy Prices Toolbox’ from last October has helped Member States to mitigate the impact of high prices on vulnerable consumers and it remains an important framework for national measures. Today the Commission is presenting Member States with additional guidance, confirming the possibility to regulate prices in exceptional circumstances, and setting out how Member States can redistribute revenue from high energy sector profits and emissions trading to consumers. EU State Aid rules also offer Member States options to provide short-term support to companies affected by high energy prices, and help reduce their exposure to energy price volatility in the medium to long term. Following a consultation on targeted amendments to the Emission Trading System State aid Guidelines, the Commission will also be consulting with Member States on the needs for and scope of a new State aid Temporary Crisis Framework to grant aid to companies affected by the crisis, in particular those facing high energy costs.

Photo-illustration: Pixabay

The Commission intends to present by April a legislative proposal requiring underground gas storage across the EU to be filled up to at least 90 percent of its capacity by 1 October each year. The proposal would entail the monitoring and enforcement of filling levels and build in solidarity arrangements between Member States. The Commission continues its investigation into the gas market in response to concerns about potential distortions of competition by operators, notably Gazprom.

To address the skyrocketing energy prices, the Commission will look into all possible options for emergency measures to limit the contagion effect of gas prices in electricity prices, such as temporary price limits. It will also assess options to optimise the electricity market design taking into account the final report of the EU Agency for the Cooperation of Energy Regulators (ACER) and other contributions on benefits and drawbacks of alternative pricing mechanisms to keep electricity affordable, without disrupting supply and further investment in the green transition.

REPowerEU – eliminating our dependence on Russian gas before 2030

Phasing out our dependence on fossil fuels from Russia can be done well before 2030. To do so, the Commission proposes to develop a REPowerEU plan that will increase the resilience of the EU-wide energy system based on two pillars: Diversifying gas supplies, via higher Liquefied Natural Gas (LNG) and pipeline imports from non-Russian suppliers, and larger volumes of biomethane and renewable hydrogen production and imports; and, reducing faster the use of fossil fuels in our homes, buildings, industry, and power system, by boosting energy efficiency, increasing renewables and electrification, and addressing infrastructure bottlenecks.

Full implementation of the Commission’s ‘Fit for 55′ proposals would already reduce our annual fossil gas consumption by 30 percent, equivalent to 100 billion cubic metres (bcm), by 2030. With the measures in the REPowerEU plan, we could gradually remove at least 155 bcm of fossil gas use, which is equivalent to the volume imported from Russia in 2021. Nearly two thirds of that reduction can be achieved within a year, ending the EU’s overdependence on a single supplier. The Commission proposes to work with Member States to identify the most suitable projects to meet these objectives, building on the extensive work done already on national Recovery and Resilience Plans.

Background

The new geopolitical and energy market reality requires us to drastically accelerate the clean energy transition and increase Europe’s energy independence from unreliable suppliers and volatile fossil fuels.

Following the invasion of Ukraine, the case for a rapid clean energy transition has never been stronger and clearer. The EU imports 90 percent of its gas consumption, with Russia providing around 45 percent of those imports, in varying levels across Member States. Russia also accounts for around 25 percent of oil imports and 45 percent of coal imports.

The Commission’s Energy Prices Toolbox of October 2021 has been helping citizens and businesses to face high energy prices in recent months. 25 Member States have adopted measures in line with the toolbox which are already easing energy bills for over 70 million household customers and several million micro, small and medium-sized enterprises.

The Commission continues to work with neighbours and partners in the Western Balkans, and in the Energy Community, which share the EU’s fossil fuel dependencies and exposure to price hikes, while also having committed to the same long term climate goals. For Ukraine, Moldova and Georgia, the EU stands ready to provide support to ensure reliable and sustainable energy. The ongoing effort to provide for an emergency synchronisation of the Ukrainian and Moldovan electricity grids with the continental European grid is a clear token of this commitment.

Source: European Commission

Global CO2 Emissions Rebounded to Their Highest Level in History in 2021

Photo-illustration: Pixabay
Photo-illustration: Pixabay

Increased use of coal was the main factor driving up global energy-related CO2 emissions by over 2 billion tonnes, their largest ever annual rise in absolute terms.

Global energy-related carbon dioxide emissions rose by 6 percent in 2021 to 36.3 billion tonnes, their highest ever level, as the world economy rebounded strongly from the Covid-19 crisis and relied heavily on coal to power that growth, according to new IEA analysis.

The increase in global CO2 emissions of over 2 billion tonnes was the largest in history in absolute terms, more than offsetting the previous year’s pandemic-induced decline, the IEA analysis shows. The recovery of energy demand in 2021 was compounded by adverse weather and energy market conditions – notably the spikes in natural gas prices – which led to more coal being burned despite renewable power generation registering its largest ever growth.  

The global CO2 emissions and energy demand numbers are based on the IEA’s detailed region-by-region and fuel-by-fuel analysis, drawing on the latest official national data and publicly available energy, economic and weather data. Combined with the methane emissions estimates that the IEA published last month and estimates of nitrous oxide and flaring-related CO2 emissions, the new analysis shows that overall greenhouse gas emissions from energy rose to their highest ever level in 2021.

The numbers make clear that the global economic recovery from the Covid-19 crisis has not been the sustainable recovery that IEA Executive Director Fatih Birol called for during the early stages of the pandemic in 2020. The world must now ensure that the global rebound in emissions in 2021 was a one-off – and that an accelerated energy transition contributes to global energy security and lower energy prices for consumers.

Coal accounted for over 40 percent of the overall growth in global CO2 emissions in 2021, reaching an all-time high of 15.3 billion tonnes. CO2 emissions from natural gas rebounded well above their 2019 levels to 7.5 billion tonnes. At 10.7 billion tonnes, CO2 emissions from oil remained significantly below pre-pandemic levels because of the limited recovery in global transport activity in 2021, mainly in the aviation sector.

Despite the rebound in coal use, renewable energy sources and nuclear power provided a higher share of global electricity generation than coal in 2021. Renewables-based generation reached an all-time high, exceeding 8 000 terawatt-hours (TWh) in 2021, a record 500 TWh above its 2020 level. Output from wind and solar PV increased by 270 TWh and 170 TWh, respectively, while hydro generation declined due to the impacts of drought, notably in the United States and Brazil.

Photo-illustration: Pixabay

The use of coal for electricity generation in 2021 was intensified by record high natural gas prices. The costs of operating existing coal power plants across the United States and many European power systems were considerably lower than those of gas power plants for the majority of 2021. Gas-to-coal switching pushed up global CO2 emissions from electricity generation by well over 100 million tonnes, notably in the United States and Europe where competition between gas and coal power plants is tightest.

The rebound of global CO2 emissions above pre-pandemic levels has largely been driven by China, where they increased by 750 million tonnes between 2019 and 2021. China was the only major economy to experience economic growth in both 2020 and 2021. The emissions increases in those two years in China more than offset the aggregate decline in the rest of the world over the same period. In 2021 alone, China’s CO2 emissions rose above 11.9 billion tonnes, accounting for 33 percent of the global total.

China’s rise in emissions resulted largely from a sharp increase in electricity demand that leaned heavily on coal power. With rapid GDP growth and additional electrification of energy services, electricity demand in China grew by 10 percent in 2021, faster than economic growth at 8.4 percent. This increase in demand of almost 700 TWh was the largest ever experienced in China. With demand growth outstripping the increase in supply from low emissions sources, coal was used to meet more than half of the rise in electricity demand. This was despite the country also seeing its largest ever increase in renewable power output in 2021.

CO2 emissions in India rebounded strongly in 2021 to rise above 2019 levels, driven by growth in coal use for electricity generation. Coal-fired generation reached an all-time high in India, jumping 13 percent above its 2020 level. This was partly because the growth of renewables slowed to one-third of the average rate seen over the previous five years.

Global economic output in advanced economies recovered to pre-pandemic levels in 2021, but CO2 emissions rebounded less sharply, signalling a more permanent trajectory of structural decline. CO2 emissions in the United States in 2021were 4 percent below their 2019 level. In the European Union, they were 2.4 percent lower. In Japan, emissions dropped by 3.7 percent in 2020 and rebounded by less than 1 percent in 2021.

On a per capita basis, CO2 emissions in advanced economies have fallen to 8.2 tonnes on average and are now below the average of 8.4 tonnes in China, although wide differences remain among advanced economies.

Source: IEA

EBRD Supports the Digital Transformation of the Suez Canal Economic Zone

Photo-illustration: Pixabay
Photo-illustration: Pixabay

The European Bank for Reconstruction and Development (EBRD) is supporting the efforts of the Suez Canal Economic Zone (SCZone) to develop an efficient, competitive and eco-friendly business environment that is attractive to international investors.

An attractive business hub will position the SCZone as a leading space for global trade, industries and services and will generate job opportunities for Egyptians.

Aiming to streamline administrative formalities and to fast-track the management of investor services, the SCZone authority has established a ‘one-stop shop’ for investors that is managed by its Investor Services Department.

The EBRD has been providing targeted technical support to the Suez Canal Economic Zone to deliver this autonomous, digital and interactive one-stop shop. The digital facilities will provide the speed and efficiency required to deliver investor services effectively, including licences and permits.

The first phase of the EBRD’s technical support has been successfully completed, with recommendations for the re-engineering and improvement of the first set of priority services. This will pave the way for the restructuring and full digitalisation of the remaining investor services.

The second phase will be launched during the first half of 2022. It will focus on the creation of a fully fledged digital and interactive one-stop service, enabling the SCZone administration to comprehensively manage current services and integrate new ones into the regulatory framework and digital platform.

In addition, the Bank has made recommendations on modernising the regulatory framework and on bringing best practices from other well-established economic zones around the world. It has also assisted the SCZone with the design and establishment of an industrial park for small and medium-sized enterprises at Qantara West, next to the Suez Canal and surrounding facilities.

“The EBRD is delighted that our fruitful partnership with the SCZone is contributing to the successful delivery of an autonomous, digital and interactive one-stop shop. The SCZone’s project is a good example of how we can speed up the rollout of digital services,” said EBRD Vice President, Policy and Partnerships, Mark Bowman.

Photo-illustration: Pixabay

Yehia Zaki, Chairman of the SCZone, said: “The launching of the second phase of cooperation with the EBRD aims to implement the improvement programme and raise the level of performance of the one-stop shop for the SCZone. The cooperation will serve to regulate the services and special procedures provided to investors. It will provide technical support to improve the level of services by raising the skills and efficiency of staff at the one-stop shop, in addition to working on automating all services to simplify procedures and documents.”

The Covid-19 crisis has accelerated digital transformation across the EBRD regions, including the development of digital tools and sharing of knowledge about regulatory sandboxes. It has also accelerated the development of digital government services for firms to improve the ease and transparency of doing business.

At the end of 2021, the EBRD adopted its digital approach to advancing transition, which sets out a comprehensive framework for how the Bank will use its three instruments – investment, policy engagement and advisory services – to support digital transition in the economies where it operates.

Egypt is a founding member of the EBRD. Since the start of the Bank’s operations there in 2012, the EBRD has invested close to €8.6 billion in 144 projects in the country.

Source: EBRD