Coastal ecosystems primarily the mangroves, seagrass meadows, and tidal marshes offer sustainable ecosystem services like protecting the coastal areas and nursery of marine species and offering water purification. These oceanic ecosystems and coastal areas are huge reservoirs of carbon which is termed blue carbon and the ecosystem formed by it is called Blue Carbon Ecosystem (BCE).

Blue carbon plays a crucial role in absorbing atmospheric CO2 and significantly impacts climate change and the net global distribution of carbon wealth.

Many research reports show that Australia, Indonesia, and Cuba are the largest contributors of blue-carbon net wealth to the rest of the world. However, only a few countries can entirely offset their carbon footprint through blue carbon.

In recent years, Taiwan has emerged as a pioneer in the development of a vibrant and sustainable blue carbon market. Its government is proactive in recognizing the values of blue carbon and has implemented policies and initiatives to promote its sustainable utilization.

Taiwan’s primary focus is to enhance the carbon sequestration capacity of its coastal ecosystems and foster economic growth and ecological resilience.
The government aims to expand its eco-conservation efforts by establishing maritime protected areas and diversifying afforestation projects.
The sale of carbon credits generated from blue carbon projects would enable the upscaling of restoration, conservation, and development of these ecosystems

Taiwan Targets a 700K-Ton Blue Carbon Oasis by 2030.

Taiwan holds a substantial blue carbon reserve of 350,000 tons, surpassing its terrestrial forest (green carbon) counterpart. The mangrove-based blue carbon ecosystem is believed to offer a 2.5x greater carbon offsetting effect compared to a similar-sized green carbon ecosystem. This is because its geography offers a huge advantage to its vast stretch of blue carbon reserves. The island is in the western Pacific Ocean lying roughly 100 miles (160 km) off the coast of southeastern China.

Researchers and industry experts have also vouched for blue carbon as it is more resilient and stable with higher carbon sequestration and carbon sediment retention potential. Unlike forest lands that could be vulnerable to several risks like illegal deforestation and wildfires, blue carbon reserves have more endurance capacity which makes it a hotspot for investment opportunities.

Foreseeing the growth in this domain, the Taiwan government is aiming to double its current reserves to 700K tons by 2030 with intensified developmental efforts.

Figure: Comparison of potential for sequestering carbon between coastal and terrestrial forests

Source: Blue Carbon Initiative

Taiwan Opens a New Window to Blue Carbon Opportunities

Dating back to 2022, The Taiwan Ocean Union was formed with the United Nations Decade of Ocean Science for Sustainable Development (2021-2030), to foster collaboration among academic institutions, government, and other stakeholders to develop and conserve Taiwan’s marine ecosystems. The Ocean Union focuses on 5 key domains:

blue carbon ecosystem
marine environmental sustainability
marine observation technology
laws and policies for the ocean, marine databases, and research vessels
ocean engineering technology

The chairperson of the Taiwan Ocean Union, Professor Chiang Kuoping, (also a faculty of the National Taiwan Ocean University), further fortified the Union’s objective by stating,

“The union aims at establishing a database for all sorts of marine research, providing systematic data for the experts of law and policymakers to propose effective proposals, thereby improving the government’s policy implementation. The second target is to establish and grow ocean industries.”

With this step, Taiwan is looking ahead to increase its offset methodologies for blue carbon and align with the global mission to achieve net zero by 2050.

Taiwan’s Algae Cultivation Strategy to Secure Carbon Credits

Taiwan is actively investigating the prospects of blue carbon via a pilot initiative supported by the government. One such technology is – microalgae cultivation and carbon sequestration. Given the vastness of oceans, highly efficient ocean-based carbon dioxide removal (CDR) solutions can potentially eliminate billions of tons of CO₂.

The technology involves using algae to capture carbon dioxide from its surrounding atmosphere. The algae perform photosynthesis and convert it into biomass and oxygen. The microalgae are sourced from farming, detaches, and sinks loaded with sequestered carbon.

Also, the macroalgal biomass is compressed and retained in the ocean for carbon sequestration.

For industrial applications, microalgae can generate carbon credit through multiple mechanisms. To name a few, microalgal biomass production, biofuel production, wastewater treatment, and various research and development activities related to optimizing microalgae strains and cultivation techniques.

Partnerships between the Taiwan Ocean Research Institute and National Dong Hwa University can establish a top-notch monitoring system for Taiwan’s marine species and blue carbon ecosystem.

Taiwan Opens a New Window to Blue Carbon Opportunities

Dating back to 2022, The Taiwan Ocean Union was formed with the United Nations Decade of Ocean Science for Sustainable Development (2021-2030), to foster collaboration among academic institutions, government, and other stakeholders for the development and conservation of Taiwan’s marine ecosystems.

Since then, the Ocean Union has put serious efforts to conserve Taiwan’s marine ecosystem. It focuses on 5 key domains:

blue carbon ecosystem
marine environmental sustainability
marine observation technology
laws and policies for the ocean, marine databases, and research vessels
ocean engineering technology

With this step, Taiwan is looking ahead to increase its offset methodologies for blue carbon and align with the global mission to achieve net zero by 2050.

A Greener Bliss: Blue Carbon for Carbon Credits

Climate Mitigation: The project aligns with global climate goals by actively reducing carbon dioxide levels by incorporating ocean-based carbon dioxide removal technologies.
Renewable Energy Source: Microalgae-derived biofuels provide a sustainable and renewable energy source, reducing dependence on fossil fuels and contributing to a cleaner energy landscape.
Environmental Stewardship: Taiwan’s initiative underscores its commitment to environmental stewardship, demonstrating responsible and innovative approaches to address climate challenges.

As per reports, Taiwan’s Ocean Affairs Council has finalized the revision of the “Blue Carbon Methodology” for native mangroves and seagrass beds. This initiative, currently under review by the Ministry of Environment, aims to “standardize measurement procedures for blue carbon sequestration and greenhouse gas reduction.”

In March 2022, Taiwan officially published “Taiwan’s Pathway to Net-Zero Emissions in 2050”, which provides the action plan to achieve 2050 Net-Zero Emissions and develop its blue carbon.

From this analysis, we can conclude that Taiwan’s blue carbon reserve initiative towards achieving the ambitious target of 700 K-ton by 2030 has considerable ground to cover.

Read more: Blue Carbon from Floating Farms Seaweed • Carbon Credits

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Shell retired 20 million tonnes of carbon offsets in 2023, compared with 4.1 million tonnes that were included in its 2022 net carbon intensity. The oil giant will continue its efforts to halve emissions from its operations by 2030, compared with 2016 levels. 

Shell’s Energy Transition Strategy

Carbon dioxide emissions from the energy system comprised almost three-quarters of global greenhouse gas emissions in 2023, per Shell’s report. 

The implementation of stricter government policies could facilitate a reduction in carbon emissions at a pace aligning with the temperature objectives outlined in the Paris Agreement. Even without such policies, estimates say that global demand for fossil fuels would decrease from the current level of about 80% to below 70% by 2040.

Should the world adopt a trajectory towards achieving net zero emissions by 2050, this figure could drop to 50%. This shift will be primarily driven by the increased adoption of electrification and the expansion of renewable energy generation.

In its recently released first Energy Transition Strategy 2024 update, Shell revealed a new ambition to decrease customer emissions resulting from the use of its oil products by 15-20% by 2030 compared to 2021 levels. 

The report also underscores the company’s commitment to achieving net zero emissions across all operations and energy products by 2050 as seen below. 

Shell Net Zero Target

Source: Shell report

Wael Sawan, Shell’s Chief Executive Officer, highlighted the pivotal role of energy in development and emphasized Shell’s dedication to providing both present energy needs and building a low-carbon energy system for the future. The strategy focuses on performance, discipline, and simplification to maximize impact throughout the energy transition while creating value for investors and customers. Sawan further noted that:

“By providing the different kinds of energy the world needs, we believe we are the investment case and the partner of choice through the energy transition.”

Progress in Action

The update outlines Shell’s progress in various areas:

Reduction in Emissions: By the end of 2023, Shell had achieved over 60% of its target to halve emissions from its operations, also known as Scope 1 and 2 emissions, by 2030 compared to 2016 levels. Notably, the company exceeded targets set by signatories to the Oil and Gas Decarbonization Charter agreed at COP28.

RELATED: Oil & Gas Firms to Emit 150B Metric Tons of Carbon Pollution

Methane Emissions Reduction: Shell achieved 0.05% methane emissions intensity in 2023, significantly below its target of 0.2%.
Carbon Intensity Reduction: Shell achieved a 6.3% reduction in the net carbon intensity of energy products sold in 2023 compared to 2016. This is the third consecutive year of hitting this target.

The oil major aims to focus on markets and segments where it can add the most value. These include the expansion of renewable power in key regions such as Australia, Europe, India, and the USA.

Consequently, there will be a lower total growth of power sales by 2030, leading to an update in the net carbon intensity target, now targeting a 15-20% reduction.

To support its transition to a net zero emissions energy business, Shell plans to invest $10-15 billion between 2023 and the end of 2025 in low-carbon energy solutions. 

Last year, Shell invested over $5 billion on these solutions, which is over 23% of its total capital spending. These investments include electric vehicle charging infrastructure, biofuels, renewable power, hydrogen, and carbon capture and storage technologies. 

Shell aims to scale up these technologies to make them more affordable for customers. The energy company also advocates for policies supporting national net zero goals, including carbon pricing.

Shell’s Strategic Shifts and Sustainable Practices

Chart from Reuters

In 2023, Shell’s net carbon intensity accounted for 20 million carbon credits, of which 4 million were linked to energy products. Of the 20 million retired carbon credits, 85% were certified by Verra, 9% by the American Carbon registry, 6% by Gold Standard, and less than 1% via Australian Carbon Credit Units.

Europe’s largest oil major discreetly abandoned its plan to allocate $100 million annually to carbon credits last year. Shell’s plan, by far, is the largest carbon offset program among corporations, announced 6 months after Wael Sawan became the CEO. 

READ MORE: Shell Scraps Its $100M Carbon Offset Plan

Sawan unveiled a significant strategy shift for Shell, indicating the company’s intention to sustain its current level of oil production until 2030. The revised strategy prioritizes cost reduction and enhancing shareholder profits.

Oil majors have faced growing investor pressure to prioritize their most profitable ventures, particularly following periods of robust profits alongside declining returns from renewable energy ventures. 

As the world’s largest liquefied natural gas (LNG) trader, Shell emphasized its belief in gas and LNG’s pivotal role within the energy transition. It remarked that these energy resources are vital alternatives to harmful carbon sources in power plants. 

The oil giant earned a net profit of $28 billion in 2023 amid strong LNG and oil sales.

In conclusion, Shell’s energy transition update reflects its commitment to reducing emissions, investing in low-carbon solutions, and driving sustainable energy practices to achieve its net zero emissions target by 2050.

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FortisBC Energy Inc. (FortisBC) has initiated a massive $50 million pilot project, with plans of investing up to $700 million, aimed at reducing energy consumption in older homes and multifamily housing units across British Columbia. This endeavor is crucial for achieving the province’s climate action objectives. 

FortisBC partners with Metro Vancouver Housing and residents from the Lower Mainland and Southern Interior regions. The company has enrolled 20 single-family homes and 4 apartment buildings in a deep energy retrofit pilot program. 

Deep energy retrofits involve extensive, whole-home upgrades designed to cut energy use by at least half.

Retrofitting BC’s Aging Homes

Buildings contribute to carbon emissions, representing 15% of global emissions while responsible for about 40% of global energy-related emissions. In the U.S, they account for over 30% of all GHG emissions.

Buildings comprise slightly over 10% of British Columbia’s GHG emissions. In response, the Province of B.C. has established a target of reducing GHG emissions in the building and communities sector to 59% to 64% of 2007 levels by 2030. 

However, addressing this goal is particularly challenging with older homes and apartment buildings. That’s because many were built before energy efficiency standards were implemented in the National Energy Code for Buildings in 1997. 

Given that a significant number of these buildings will remain in use until 2050, deep energy retrofits are necessary to meet these emission reduction targets.

George V. Harvie, Chair of the Metro Vancouver Board of Directors, echoed the importance of reducing emissions from buildings. He noted that it’s one of the main ways that they will reach their goal of becoming a carbon-neutral region by 2050. 

Metro Vancouver Housing ambitiously aims to cut emissions from buildings by 45% compared to 2010 levels over the next decade. Partnering with FortisBC on deep energy retrofit projects provides an opportunity to explore and implement new technologies to enhance energy efficiency, reduce GHGs, and improve the resilience and comfort of buildings for tenants.

RELATED: Trane Technologies Unleashes AI Power to Cut Building Emissions by 30%

FortisBC’s Bold Initiative Pioneers Energy Efficiency

Throughout the multi-year pilot study, FortisBC will assess the energy savings, customer satisfaction, and overall costs associated with each phase. The insights gained from this initiative will be invaluable for industry stakeholders, policymakers, and FortisBC itself. 

They will inform strategies to ensure older housing units can meet the evolving needs of residents as the province progresses towards a net zero future.

Joe Mazza, Vice President of Energy Supply and Resource Development at FortisBC, emphasized the significance of this initiative, stating: 

“To our knowledge, this is the largest targeted, real-world study of deep energy-efficiency upgrades in B.C. homes, and the information will be invaluable to us and others looking to transform energy use.” 

By identifying the most effective approaches to significantly reduce energy consumption in older homes, FortisBC aims to mitigate emissions and help customers save on energy expenses.

The company commits to advancing energy efficiency as a cornerstone of its efforts to lead the clean energy transformation in the province. 

By focusing on more intricate energy-efficiency opportunities, the company aims to assist customers in achieving the necessary GHG emissions reductions outlined in its Clean Growth Pathway to 2050 and in alignment with the province’s CleanBC plan.

Transforming Homes for a Sustainable Future

As FortisBC evolves its energy-efficiency programs, it will undertake deeper energy retrofit projects for more emission reductions. 

The current pilot adopts an envelope-first approach. It prioritizes enhancements to the building envelope (outer shell) to prevent heat loss and reduce heating demand. This includes upgrades to walls, windows, doors, and insulation. 

Additionally, each home and building will undergo upgrades to its heating, domestic hot water, and ventilation systems to maximize efficiency. This involves the installation of new gas heating technologies such as dual-fuel hybrid systems or gas heat pumps. These systems have achieved efficiencies of over 100% in manufacturers’ testing, with efforts to replicate these results in real-world settings.

Each of the participating homes and buildings has undergone a detailed energy assessment, modeling, and design phase, with early indicators showing promising results. 

For instance, Metro Vancouver Housing is collaborating on the Manor House project. It’s a three-level apartment building built in 1972 in North Vancouver that provides affordable housing to 50 households. The project is expected to reduce GHG emissions by 66% and energy usage by 56%.

All 20 participating single-family homes have completed the majority of upgrades, and construction is now underway in the 4 apartment buildings. Once completed, each home and building will undergo testing for one year to assess energy savings.

With FortisBC planning to invest close to $700 million in energy-saving programs over the next 4 years, the insights gained from the pilot will be invaluable in identifying the most effective and affordable ways to lower energy consumption in existing buildings. The company will use the findings to determine replication strategies and establish benchmarks for future upgrade projects.

READ MORE: DevvStream’s BFCOP Revolutionizes Carbon Offsetting for Buildings

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California has made significant strides in its emission reduction journey while simultaneously expanding its economy, serving as a model for other states to follow in the energy transition. However, the state faces a challenging task in meeting its climate goal of cutting emissions by 40% from 1990 levels by 2030.

Accelerating Emissions Reduction: California’s Urgent Call to Action

According to a recent report by the San Francisco think tank Next10 and Los Angeles consulting firm Beacon Economics, California needs to accelerate its efforts to achieve deeper levels of decarbonization by the end of the decade. 

The state must nearly triple its pace of annual emissions reductions to reach the 2030 target. This is especially crucial after its climate progress was temporarily stalled by the economic rebound following pandemic lockdowns.

The report suggests that California has to reduce emissions by an annual rate of 4.6% between 2022 and 2030. In comparison, the state has achieved an average rate of 1.5% between 2010 and 2021.

California is recognized as a leader in climate policy, technology, and renewable energy, but its performance in emissions reduction falls short. 

The state’s greenhouse gas emissions increased by 3.4% in 2021, reaching 381.3 million metric tons of CO2 equivalent. This is primarily due to increases in the transportation and power sectors’ emissions, underscoring the need for intensified reduction efforts. 

The report’s author and research manager at Beacon Economics, Stafford Nichols, noted that the rate of emission reduction has slowed since 2015-2016. He further emphasized the urgency for California to regain momentum in its climate action initiatives.

“While California is moving in the right direction in many ways, renewable electricity generation must greatly increase in the coming years in order to reach the state’s goal… we need to double the speed we are adding renewables to our power mix, from 4.3% per year to 8.7% per year.”

In October last year, the state enacted the country’s first-of-its-kind climate disclosure rule. It calls on businesses to report on their GHG emissions and climate-related financial risks. 

READ MORE: California Sets Precedent with New Corporate Climate Disclosure Laws

California also banned the sale of gas-powered lawn care equipment according to a regulation that phases out small, off-road engines. 

Powering Progress Toward a Green Grid

Transitioning to a greener grid is a strategic imperative for California as it grapples with rising emissions in its electric power sector. The sector saw a 3.5% increase from 2019 to 2021, primarily driven by in-state generation.

The power sector, ranking as the state’s 3rd-largest emitter behind transportation and industry, holds strategic significance in California’s efforts to decarbonize other sectors of its economy. 

As California aims to electrify transportation, the adoption of zero-emission electric vehicles (ZEVs) has been instrumental.  

In 2023, EVs accounted for around one-quarter of all new passenger vehicles sold in California. The state experienced a significant increase of 61.7% in new light-duty electric vehicle sales across all classes in 2022 compared to the previous year.

Remarkably, California achieved its 2025 goal of having 1.5 million ZEVs on the road two years ahead of schedule in April 2023. With an average annual increase in sales of 25.6% from 2018 to 2023, the state is projected to meet its 2030 target of 5 million ZEVs one year earlier than planned.

Source: https://www.gov.ca.gov/

The state’s electrical grid, however, sources 50% of its power from fossil fuels, mostly natural gas. Thus, the reliance of EVs on this grid shows the urgent need to transition to a cleaner energy mix. 

Nationwide, the U.S. is unleashing the power of energy storage to address the rising EV adoption across the nation. California led the installations of new large-scale battery capacity in 2023, with 8,179 MW of operating batteries.

READ MORE: US Energy Storage Rises 59% Amidst the Era of EVs and Lithium

California’s Ambitious Targets and Grid Expansion Strategy

California is leveraging the rapid advancement of battery storage technology to include more variable renewable energy sources such as solar. This is crucial for ensuring grid reliability, especially considering the intermittency of renewable resources.

According to S&P Global data, California’s renewables portfolio standard mandates that solar, wind, geothermal, small-scale hydropower, and other eligible sources cover 44% of retail sales by 2024. That represents an increase of 52% by 2027 and 60% by 2030. Additionally, California aims to achieve the following reliance on renewables and other carbon-free sources: 

90% by 2035, 
95% by 2040, and 
100% by 2045.

Achieving these bold targets entails expanding the grid infrastructure and investing in new transmission lines to accommodate cleaner energy sources. It would also be elemental in supporting the electrification of transportation and building sectors.

However, rising electricity prices pose a significant challenge to the state’s decarbonization goals. Regulators are legislators are exploring different ways to address this concern. 

One proposed option is to extend California’s cap-and-trade program, established a decade ago, to generate additional revenue for energy bill relief rather than primarily funding climate initiatives. However, skeptics argue that this proposal carries potential pitfalls and its effectiveness remains questionable. 

Despite setbacks, the state’s ambitious targets and innovative strategies signal a resilient commitment to combatting climate change. With concerted efforts to accelerate emissions reductions, transition to a greener grid, and expand renewable energy sources, California continues to inspire as a leader in climate action.

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