THE ENERGY INDUSTRY TIMES - NOVEMBER 2021
2
Junior Isles
The world’s developed countries must
show leadership in tackling global cli-
mate change, says a new International
Energy Agency (IEA) report.
According to the report ‘Achieving
Net Zero Electricity Sectors in G7
Members’, G7 members are well
placed to fully decarbonise their elec-
tricity supply by 2035, which would
accelerate the technological advances
and infrastructure rollouts needed to
lead global energy markets towards net
zero emissions by 2050.
The pathway laid out in the report
underscores how the G7 can serve as
rst movers, jump-starting innovation
and lowering the cost of technologies
for other countries while maintaining
electricity security and placing people
at the centre of energy transitions.
“G7 leadership in this crucial en-
deavour would demonstrate that get-
ting to electricity sectors with net zero
emissions is both doable and advanta-
geous, and would also drive new in-
novations that can benet businesses
and consumers,” said Dr. Fatih Birol,
the IEA Executive Director. “G7
members have the nancial and tech-
nological means to bring their elec-
tricity sector emissions to net zero in
the 2030s, and doing so will create
numerous spill-over benets for other
countries’ clean energy transitions
and add momentum to global efforts
to reach net zero emissions by 2050.
The new report builds on the IEA’s
landmark Roadmap to Net Zero by
2050, which identies key milestones,
challenges and opportunities for G7
members. It was requested by the
United Kingdom, which holds the G7
Presidency this year.
The G7 accounts for nearly 40 per
cent of the global economy, 36 per cent
of global power generation capacity,
30 per cent of global energy demand
and 25 per cent of global energy-relat-
ed carbon dioxide (CO
2
) emissions.
According to the IEA’s pathway to
net zero by 2050, renewables need to
provide 60 per cent of the G7’s elec-
tricity supply by 2030, whereas under
current policies they are on track to
reach 48 per cent.
It says the G7 has an opportunity to
demonstrate that electricity systems
with 100 per cent renewables during
specic periods of the year and in cer-
tain locations can be secure and af-
fordable. “At the same time, increased
reliance on renewables does require
the G7 to lead the way in nding solu-
tions to maintain electricity security,
including seasonal storage and more
exible and robust grids,” the report
states.
The IEA’s ndings came as the Or-
ganisation for Economic Cooperation
and Development (OECD) agreed to
end support for unabated coal red
power plants. Specically, the ban will
apply to ofcially supported export
credits and tied aid for:
n new coal red power plants without
operational carbon capture, utilisation
and storage (CCUS) facilities; and
n existing coal red power plants, un-
less the purpose of the equipment sup-
plied is pollution or CO
2
abatement
and such equipment does not extend
the useful lifetime or capacity of the
plant, or unless it is for retrotting to
install CCUS.
Participants to the arrangement are
Australia, Canada, the European
Union, Japan, Korea, New Zealand,
Norway, Switzerland, Turkey, the
United Kingdom, and the United
States.
At the end of September United Na-
tions (UN) Secretary-General Antonio
Guterres called on countries to rapidly
shift towards decarbonised energy sys-
tems, redirect their fossil fuel subsidies
to renewables and place a price on
carbon.
“Investing in renewable energy – in-
stead of spending billions on propping
up fossil fuels – can create tens of mil-
lions of good jobs and empower the
most vulnerable,” Guterres said.
“Every country, city, nancial institu-
tion, company and civil society organ-
isation has a role to play in building a
sustainable and equitable energy fu-
ture,” he said.
Companies continued to demon-
strate their commitment to tackling
climate change, as analysis from
BNEF revealed that through August,
111 of the 167 Climate Action100+
“focus companies” set a net zero or
equivalent target, pledging to fully
reduce and/or offset their emissions
at a level equivalent to what they emit
annually.
BNEF says these companies will
reduce greenhouse gas emissions by
3.7 billion metric tons of carbon di-
oxide equivalent (GtCO
2
e) annually.
This increases to 9.8 billion metric
tons by 2050 – equivalent to over a
quarter of global greenhouse gas
house emissions today.
Kyle Harrison, head of sustainability
research at BNEF, said: “Companies
will be under the microscope for the
path they take to achieving net zero
emissions. The winners will be the ones
that will – and already do – address
their entire value chain, focus on tan-
gible emission reductions and turn a
net zero strategy into a new business
opportunity.”
In late September funds managing
nearly $30 trillion in assets called on
1600 of the world’s most polluting
companies to “urgently” set science-
based emissions reduction targets.
n The Court of Justice of the EU
(CJEU) has ruled that the international
treaty used by energy companies to
claim compensation from member
states that frustrate their investments
is incompatible with EU law.
The UN World Meteorological
Organization (WMO) also said that
greenhouse gas concentrations hit a
record last year and the world is
“way off track” in capping rising
temperatures.
The Emissions Gap report takes
into account nationally determined
contributions (NDCs) or carbon-
cutting pledges submitted by 120
countries for the run-up to 2030, as
well as other commitments not yet
formally submitted in an NDC. It
nds that when added together, the
plans cut greenhouse gas emissions
in 2030 by around 7.5 per cent com-
pared to the previous pledges made
ve years ago.
“If there is no meaningful reduc-
tion of emissions in the next decade,
we will have lost forever the pos-
sibility to reach 1.5°C,” said UN
Secretary General Antonio
Guterres.
In early October, global consult-
ing rm Capgemini also revealed
energy consumption and green-
house gas emissions are on the rise
again and called for realistic, afford-
able, plans to accelerate energy
transition.
In the 23rd edition of its annual
report, the World Energy Markets
Observatory (WEMO), created in
partnership with De Pardieu Brocas
Maffei, Vaasa ETT and Enerdata,
Capgemini makes several recom-
mendations to meet climate change
goals whilst ensuring energy secu-
rity of supply, and affordability for
citizens.
These include setting ambitious
but realistic energy transition plans;
accelerating research in low carbon
technologies; measuring the effect
of actions taken; and paying special
attention to cyber security.
The WEMO report followed a
report published at the end of Sep-
tember by the Energy Transitions
Commission (ETC), which set out
the actions nations and companies
could take during the 2020s to de-
liver the Paris agreement and limit
global warming to 1.5°C.
The ETC’s report ‘Keeping 1.5°C
Alive: Closing the Gap in the
2020s’, describes technologically
feasible actions that could close that
gap to a 1.5°C pathway and could
be catalyzed by agreements in
Glasgow.
It said many of the actions entail
minimal cost and would spur further
innovation and support green eco-
nomic development; and all of them
could be given impetus at COP26
via commitments from leading
countries and companies, without
the need for comprehensive inter-
national agreement. It stressed,
however, that two high priority ac-
tions – ending deforestation and
reducing emissions from existing
coal plants – will need to be sup-
ported by climate nance ows
from rich developed countries.
Continued from Page 1
The spiralling cost of electricity has
forced Brussels to take more time in
considering how to classify nuclear
power and natural gas under the EU’s
landmark labelling system for green
nance.
As EU member states call for slack-
er rules to help counteract the conti-
nent’s energy crisis, EU nancial
services commissioner Mairead Mc-
Guinness told the Financial Times
that Brussels would delay its decision
on how to deal with the energy sourc-
es under the so-called “taxonomy on
sustainable nance”. The decision
had been due this autumn.
Amid the ongoing debate on how to
classify low carbon natural gas and
nuclear energy, which produces no
CO
2
but creates nuclear waste, Mc-
Guinness said: “As we come to the end
of the year there will be more pressure
to resolve this. We don’t have a ready-
made solution because this is, both
technically and politically... one of
those issues where you have very di-
vided views.”
Environmental groups want the sys-
tem to abide by scientic criteria to
ensure the rules stamp out, rather than
encourage, ‘green washing’ in the in-
vestment industry. Meanwhile pro-
nuclear countries and pro-gas member
states are demanding the taxonomy
rules do not penalise technologies they
say are vital in securing the transition
to net zero emissions.
McGuinness added: “We’re hearing
from citizens and businesses about
higher energy costs and keeping the
lights on. We must make sure we don’t
create fears that this transition is a
problem because the transition is the
solution.”
Speaking at Russian Energy Week
last month, HE Yury Sentyurin, Sec-
retary General of the Gas Exporting
Countries Forum (GECF) said the
current global energy crunch and the
intensifying climate change debate
highlight the serious need to embed
natural gas as part of a long-term solu-
tion to energy market stability and
transition.
“One of the most sensible, econom-
ically-viable ways to achieve sustained
energy market stability, inclusive eco-
nomic growth and Sustainable Devel-
opment Goals is to consider natural gas
as a destination fuel.”
Russia’s President Vladimir Putin,
noted: “According to experts fore-
casts looking at a 25-year horizon, the
share of hydrocarbons in the world
energy balance may decrease from the
current 80-85 per cent to 60-65 per
cent. At the same time, the role of oil
and coal will decrease. But the role of
natural gas as the most environmen-
tally friendly clean, transitional fuel
will grow, including the development
of the production of liqueed gas.”
The European Parliament has issued
updated rules to select which energy
projects should be supported in a
move to make cross-border energy
infrastructure sustainable and in line
with the EU Green Deal.
The Industry, Research and Energy
Committee approved its position on
the criteria and methodology for se-
lecting energy projects of common
interest (PCIs), such as high voltage
transmission lines, pipelines, energy
storage facilities or smart grids, which
would benet from fast-track admin-
istrative procedures and be eligible to
receive EU funds.
Members of the European Parlia-
ment supported funding the develop-
ment of hydrogen infrastructure, in-
cluding the construction of elec-
trolysers, as well as carbon capture
and storage (CCS). They also propose
to fund projects that repurpose exist-
ing natural gas infrastructure for hy-
drogen transport or storage.
Projects based on natural gas will no
longer be eligible for EU funding un
-
der the updated rules. However, a
temporary derogation will allow, un-
der strict conditions, natural gas proj-
ects from the fourth or fth list of PCIs
to be eligible for a fast-track authori-
sation procedure.
Despite making little progress in the
power sector, CCS appears to be gain-
ing momentum in hard-to-abate sec-
tors. Last month a new climate report
released by the Global CCS Institute
said that in 2021, the total capacity of
the CCS project-pipeline increased
for the fourth year in a row – by almost
one third over the previous year.
CEO of the Global CCS Institute,
Jarad Daniels, said: “As we accelerate
toward net zero emissions by mid-
century and establish clearer interim
targets, CCS will be integral to the
decarbonisation of energy, industrial
sectors such as cement, fertilisers, and
chemicals, and will open new oppor-
tunities in areas including clean hy-
drogen and carbon dioxide removal.
Headline News
Green nance labelling uncertainty still
Green nance labelling uncertainty still
surrounds gas and nuclear
surrounds gas and nuclear
Hydrogen and CCS are winners under Brussels ruling
Hydrogen and CCS are winners under Brussels ruling
Industrial nations can lead
Industrial nations can lead
decarbonisation effort
Guterres: the possibility of
limiting warming to 1.5°C could
be “lost forever”
n G7 can serve as rst movers
n OECD to end support for unabated coal red power plants