March 2024 – Page 3 – The Global Carbon Fund

Carbon Pricing in Canada Set to Increase in April 1 by 23%

March 20, 2024/in Uncategorized /by

Canada’s carbon pricing system is poised for an increase on April 1, stirring debate and concern among provincial leaders over its impact on affordability. It serves as a pivotal policy tool aimed at reducing overall emissions by imposing a financial penalty on pollution.

Carbon pricing is spearheaded by Prime Minister Justin Trudeau’s minority Liberal government. While Trudeau’s administration views this as a cornerstone policy, some provincial leaders are urging a pause citing affordability worries.

Aligning Policies with Long-Term Climate Strategies

The impending hike in carbon pricing isn’t unexpected; rather, it aligns with the government’s long-term strategy to address climate change. Annual increases are scheduled until at least 2030.

This plan signals a commitment to steadily raise the price of carbon to encourage emission reduction efforts.

Provinces and territories have the option to adopt the federal pricing system voluntarily. For jurisdictions that don’t price carbon or don’t have a similar system in place that meets the minimum national stringency standards, they’ll be subject to the federal pricing system.

The federal pricing system includes two components:

A regulatory charge on fossil fuels such as gasoline and natural gas, called the fuel charge, and
A performance-based system for industries known as the Output-Based Pricing System.

These parts may apply individually or together in a given jurisdiction.

Only three regions have their own carbon pricing systems – British Columbia, Quebec, and the Northwest Territories.

Manitoba, Nunavut, Prince Edward Island, and Yukon have both parts of the federal pricing system in effect. Additionally, in Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Saskatchewan, the federal fuel charge operates alongside provincial carbon pricing systems for industry.

Source: Environment and Climate Change Canada (ECCC)

Despite calls for a pause, Trudeau’s administration maintains its stance. It emphasizes the importance of carbon pricing in signaling the need for investment in emission reduction while shielding middle-class families from bearing excessive costs.

The government aims to strike a balance between environmental sustainability and economic affordability, amidst diverse regional perspectives and economic contexts.

Addressing Affordability Concerns Amidst Climate Commitments

The April 1 increase will primarily affect gas prices and energy bills, particularly in provinces and territories subject to the federal backstop plan. This diversity in implementation underscores the complexities of coordinating national climate policies while accommodating regional nuances and preferences.

Premier Andrew Furey’s concerns echo those of other provincial leaders, who fear the mounting financial strain on households. Still, Trudeau’s administration remains steadfast, emphasizing the role of carbon pricing in incentivizing emission reduction. It also serves as a signal to investors on the importance of transitioning to a low-carbon economy.

The government’s commitment to addressing climate change is evident in its long-term vision, which includes steadily increasing the carbon price to achieve emission reduction targets.

The current carbon pricing stands at C$65 per tonne, slated to rise to C$80 per tonne on April 1. Then it will increase annually thereafter by C$15 until reaching C$170 per tonne by 2030. Price in Canadian dollars.

Source: RBN Energy LLC website

Additionally, the government offers the Canada Carbon Rebate, formerly known as the climate action incentive payment, to eligible Canadians impacted by the federal carbon price. This rebate aims to mitigate the financial burden and ensure that the transition to a low-carbon economy is fair.

Approximately 80% of Canadians receive more from the rebates than they pay in carbon pricing, according to the government’s data.

Balancing Effectiveness and Critiques of Carbon Pricing

While some criticize carbon pricing as burdensome, Trudeau’s administration emphasizes its effectiveness in encouraging emission reduction and protecting vulnerable households. By steadily increasing the carbon price and offering rebates to mitigate impacts on households, Canada seeks to strike a balance between environmental sustainability and economic affordability.

The impending increase in Canada’s carbon price reflects the government’s commitment to addressing climate change and transitioning to a low-carbon economy.

Despite concerns over affordability, Trudeau’s administration is firm in its view that carbon pricing is a critical tool for reducing emissions and signaling the need for investment in clean energy.

As the April 1 deadline approaches, the debate over carbon pricing highlights the complexities of balancing environmental and economic priorities in the fight against climate change.

The post Carbon Pricing in Canada Set to Increase in April 1 by 23% appeared first on Carbon Credits.

Amazon and Aramco Invest in CarbonCapture’s $80M Raise for DAC

March 20, 2024/in Uncategorized /by

CarbonCapture Inc., a prominent US-based direct air capture (DAC) company, has announced the successful completion of its $80 million Series A financing. This achievement follows the addition of several strategic investors, including Amazon’s Climate Pledge Fund, Aramco Ventures, and Siemens Financial Services.

The financing round was led by Prime Movers Lab, a notable investor in groundbreaking scientific startups, with participation from Idealab X, Marc Benioff’s TIME Ventures, Neotribe Ventures, Alumni Ventures, and several other venture investors. The funds will be used to further advance technology development and to deploy early installations of CarbonCapture’s modular DAC systems.

RELEVANT: How Direct Air Capture Works (And 4 Important Things About It)

Adrian Corless, CEO of CarbonCapture Inc., expressed excitement about welcoming the new strategic investors while noting that:

“To realize our ambitious mission to decarbonize the atmosphere, it’s imperative that we marshal the capabilities of the global industrial community…Together, we’re stepping closer to a cleaner, healthier planet for future generations.”

Atmospheric Alchemy: CarbonCapture’s DAC Triump

CarbonCapture is a direct air capture (DAC) startup that specializes in modular DAC machines. They can be interconnected in large arrays to remove substantial amounts of CO2 directly from the atmosphere. Its initial modules, located in Wyoming, are designed to capture and store approximately 10,000 metric tons (Mt) of CO2 annually.

The company has set an ambitious goal to remove 5 million Mt of CO2 annually by 2030 through a phased approach to CO2 removal, consisting of four phases. If successful, this carbon removal goal would be significant, given that the current annual global capacity for CO2 removal stands at only 0.01 million Mt of CO2.

The DAC modules resemble vented shipping containers and are capable of filtering out 75% of carbon from the air passing through them. The captured CO2 is then injected 12,000 feet underground into saline aquifers for permanent storage.

CarbonCapture’s DAC project, known as Project Bison, is groundbreaking for several reasons:

It represents the first massively scalable deployment of DAC technology, with the potential to scale up to megaton levels.
It is the first project to use Class VI injection wells for DAC carbon storage. Class VI wells are for permanent CO2 storage once approved.
It could become the largest single DAC project in the world if it achieves its goal of 5 megatons of annual carbon capture and storage by 2030.

The company has already secured over $26 million in carbon removal credits through pre-sales to leading global companies such as Microsoft, Boston Consulting Group, Alphabet, Meta, Stripe, Shopify, McKinsey & Company, and JPMorgan Chase & Co.

Funding the Future of CDR

Direct air capture is an emerging CDR technology and so, it costs relatively higher than established carbon removal approaches. This is because atmospheric carbon is much more dilute than the flue gas of a power station, for instance.

Here are the costs of direct air capture in USD per ton of CO2, based on CO2 concentrations.

As DAC technology has not yet been demonstrated on a large scale, its costs remain uncertain. Capture cost estimates range anywhere from $200 to $700 per ton of CO2.

The actual cost of DAC depends on several factors, including energy source, carbon price, technology choice, capital expense, etc. All these factors influence the regional cost of carbon removal through direct air capture. Scaling up this removal technology is crucial to bring down its cost.

CarbonCapture’s DAC technology has achieved significant technical and commercial progress.

Pioneering DAC Innovation

Dr. Adiari Vazquez, Investment Partner at Amazon’s Climate Pledge Fund highlighted CarbonCapture’s innovation in advancing the scalability and accessibility of carbon removal. He added that effective, verifiable, and durable carbon removal, such as that achieved through CarbonCapture Inc.’s DAC system, will be crucial for a net zero carbon future.

Last year, Amazon inked its first investment in CDR credits with one of the world’s biggest DAC companies 1PointFive. It’s the first deal that Amazon made in DAC at this scale, with the credits coming from 1PointFive’s Stratos plant.

Aramco Ventures is also pleased to support CarbonCapture’s unique, modular direct air capture platform. Aramco, alongside Chevron and Samsung, also invested in a UK-based carbon capture tech startup’s $150M raise in 2022.

Siemens Financial Services’ investment further amplifies the CDR company’s role in commercializing direct air capture in the US. Their expertise and portfolio of digital process simulation, automation, and control solutions will support CarbonCapture’s ambitious plans to deploy DAC systems at scale.

CarbonCapture’s successful $80 million financing round signifies a major leap forward in the quest for direct air capture. With innovative DAC technology and strategic partnerships, CarbonCapture is driving meaningful progress towards a sustainable, carbon-neutral future.

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BlackRock’s Insights on 2024 Low-Carbon Transition Investment Trends

March 20, 2024/in Uncategorized /by

Investment giant BlackRock has released a new report outlining key developments expected to impact low-carbon transition-related investment opportunities and risks in 2024.

BlackRock singles out low-carbon transition as a major investment driver while emphasizing specific areas, including clean energy, electrification, and climate resilience.

The report anticipates a significant reallocation of capital towards rewiring energy systems and investing in climate resilience to mitigate risks.

In the outlook for 2024, BlackRock identified three key areas that stand out as potentially shaping the market significantly.

Electrifying Expectations: Battery Prices and Market Dynamics

Firstly, the downward trend in battery prices has the potential to drive increased demand for energy storage solutions in power grid infrastructure and the adoption of electric and hybrid vehicles.

Battery prices makes up a significant portion, often a third or more, of the production expenses for various clean technologies. These include energy storage systems for power grids and electric and hybrid vehicles (EVs).

Over the past decade, there has been a notable decline in battery prices, as shown in the chart below.

While there was a slight uptick in 2022, recent signals from battery producers suggest the potential for substantial price reductions in the coming year. This downward trajectory can be primarily due to an 80% drop in lithium prices, a crucial component, driven by increased supply.

Intense market competition and rapid technological advancements also contribute to lowering prices. Some companies are leveraging artificial intelligence, another influential force, to explore novel battery materials, further driving down future costs.

The key question remains whether this continued decline in battery prices will translate into reduced final purchase prices. In turn, this can potentially spur greater demand for energy storage systems, EVs, and hybrid vehicles.

Given their lower operational costs compared to traditional internal combustion vehicles, such a trend could have significant implications for the broader automotive industry and energy sector.

Political Power Plays

Secondly, upcoming elections worldwide could significantly impact future energy and industrial policies, influencing the direction of transition efforts, per BlackRock report.

The year 2024 sees a multitude of elections across significant regions like the European Union, the United States, and India.

Governments worldwide are grappling with the delicate balancing act of pursuing decarbonization while ensuring energy security and affordability. The outcomes of these elections could profoundly influence how this balance is achieved and consequently impact the trajectory of the low-carbon transition and adoption of clean technology globally.

Many governments are actively subsidizing their energy and clean technology sectors, creating pricing and margin pressures for non-subsidized competitors.

Moreover, election results may prompt changes in transition-related policies, potentially either accelerating or slowing down the transition in different regions. For instance, in India, continuity in policy post-election could speed up decarbonization efforts and bolster the country’s position as a leading clean technology production hub.

Similarly, the outcome of the U.S. election could have implications for existing legislation, such as the Inflation Reduction Act of 2022, which has catalyzed significant investments in energy infrastructure and technology.

Possible changes range from repeal or delays to complementary policies aimed at enhancing its effectiveness, such as land permitting reform.

Weathering the Storm

Lastly, another crucial focus in 2024 revolves around the impact of climate change-induced extreme weather events, prompted by 2023 as the hottest year on record by the World Meteorological Organization. This trend is expected to continue this year, further highlighting the urgent need for climate resilience measures.

Investors are beginning to show greater interest in companies and technologies that contribute to climate resilience. This includes innovations such as early monitoring systems for floods, air conditioning solutions to combat heatwaves, and building retrofitting for enhanced resilience against extreme weather events.

Despite this growing interest, markets may still underestimate the potential for firms specializing in resilience-boosting products and services.

Overall, BlackRock anticipates that falling battery prices could stimulate growth in the EV and energy storage industries in 2024. However, the direction of the global transition policy post-election will heavily influence investment opportunities and risks. As physical climate risks mount, the report suggests that climate resilience could emerge as a prominent investment theme this year.

Apart from the transition to a low-carbon economy, BlackRock also tracks these four other mega forces:

Demographic divergence
Digital disruption and artificial intelligence (AI)
Geopolitical fragmentation and economic competition
Future of finance

BlackRock’s report underscores the dynamic landscape of low-carbon investments in 2024, driven by evolving market dynamics, political shifts, and climate resilience imperatives. As battery prices decline and election outcomes unfold, investors face both opportunities and risks in navigating the transition to a sustainable future.

The post BlackRock’s Insights on 2024 Low-Carbon Transition Investment Trends appeared first on Carbon Credits.

Google the First to Join DOE’s Carbon Removal Challenge with $35M Pledge

March 18, 2024/in Uncategorized /by

Amidst escalating climate change concerns, the Department of Energy (DOE) is spearheading initiatives to accelerate the deployment of carbon dioxide removal technologies.

For the first time, the Department is purchasing $35 million in carbon removal credits through its Carbon Dioxide Removal Purchase program and Google is the first company to answer the call, matching DOE’s $35 million commitment.

Carbon Clearinghouse: DOE’s Bold Move

The Intergovernmental Panel on Climate Change’s (IPCC) report suggested that scenarios that limit warming to 1.5°C include scaling carbon dioxide removal methods to billions of tons of removal annually over the coming decades. However, the report also highlighted that most existing removal solutions are in their early stages and currently limited in scale.

To help scale the industry, the Department of Energy (DOE) launched the Carbon Negative Shot in 2021. This initiative aims to support innovation in different CO2 removal pathways. These include Direct Air Capture (DAC), soil carbon sequestration, ocean-based CO2 removal, and reforestation, among others.

The direct air capture sector witnessed notable advancements recently. These include recent CarbonCapture’s successful raise of $80 million in Series A funding and Climeworks unveiling its US headquarters in Austin, Texas.

The Department’s goal is to enable carbon capture and storage at gigaton scales for less than $100 per net metric ton of CO2e by 2032. In September 2023, the DOE announced the Carbon Dioxide Removal Purchase Pilot Prize. This effort makes $35 million in funding available to purchase carbon removal credits to support commercial carbon dioxide removal companies.

Companies and collectives have invested billions in carbon removal, benefiting the industry significantly. This trend highlights the importance of integrating carbon removal into climate strategies, serving as a backup for residual emissions.

As more organizations commit to net zero targets, carbon removal becomes crucial. With technological advancements, carbon removal projects are more accessible and verifiable.

However, future supply limitations may pose challenges for late adopters. And this major challenge remains: how to encourage more organizations to start buying voluntary carbon removal credits.

DOE’s Campaign Fuels Carbon Capture

Expanding the investment to other companies and organizations, the DOE announced the Voluntary Carbon Dioxide Removal Purchasing Challenge. This initiative calls on organizations to make public larger and bolder purchase commitments similar to the DOE’s $35 million carbon removal purchase pilot.

But unlike the Pilot Prize, the Challenge does not entail additional federal funds.

As part of the challenge, the DOE will create a public leaderboard recognizing buyers and tracking voluntary carbon removal purchases. It addresses non-financial barriers such as market transparency and recognition of the importance of carbon removal credits. Thus, the Challenge seeks to foster greater participation in carbon removal efforts.

How the Challenge Fits into DOE Carbon Removal Programs

The DOE is providing supporting materials for buyers to make larger carbon removal purchases while assisting CDR credit suppliers in finding more customers.

Additionally, the DOE has been actively involved in establishing DAC hubs in Texas and Louisiana. The Texas DAC Hub is spearheaded by Occidental subsidiary 1PointFive in collaboration with partners Worley and Carbon Engineering. Meanwhile, the Louisiana project, named Project Cypress, is led by the non-profit organization Battelle, alongside technology developers Climeworks and Heirloom.

Google Leads the Charge

Google is the first company to join the DOE’s challenge, matching the Department’s $35 million commitment.

Through its initiatives, Google intends to contract for at least $35 million worth of carbon removal credits over the next 12 months.

This model of mutually reinforcing public-private support is a crucial tool for commercializing carbon removal solutions. Like many emerging technologies, governments and companies have essential and complementary roles in demonstrating promising carbon removal approaches and scaling them commercially.

Randy Spock, Google’s Carbon Credits and Removals Lead, noted that:

“We’re working hard to reduce our own emissions across our operations and value chain, but we know that tackling global climate change will require a diverse set of tools to both reduce emissions and remove them from the atmosphere.”

Spock further highlighted that deploying CDR to address hard-to-abate residual emissions is critical to achieving net zero emissions.

This CDR effort builds on Google’s recent purchases through Frontier, a pioneer advance market commitment to scale breakthrough CDR approaches. The tech giant is also a part of the First Movers Coalition, a global initiative of companies collaborating to signal demand for emerging climate technologies.

Google’s decision to join the challenge and commit to purchasing carbon removal credits in advance has sparked anticipation that other tech giants may do the same. Companies like Amazon and Microsoft have already been actively purchasing such carbon credits directly from issuing companies throughout 2023.

The Department of Energy plans to highlight similar announcements going forward, hoping “to unlock game-changing capital for high-quality and affordable CDR in time to meet our climate goals.”

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US Imports of Lithium and Critical Minerals Drop Amidst Shifting EV Market

March 18, 2024/in Uncategorized /by

Critical minerals, including lithium, nickel, cobalt, copper, and rare earths, are essential in the manufacturing of clean energy technologies, spanning from wind turbines to electric vehicles (EVs). Over the last two decades, the annual trade in energy-related critical minerals has surged from $53 billion to $378 billion.

However, US imports of lithium materials and critical minerals, crucial components for EV batteries, saw a decline in 2023 compared to the previous year, per data from S&P Global Market Intelligence. This reflects the subdued demand for EVs.

In 2023, imports of processed and refined lithium totaled 17,130 and 57,210 metric tons, respectively, marking decreases of 2.4% and 20.5% compared to 2022, as reported by Market Intelligence data.

US processed lithium imports saw an uptick in the 4th quarter of 2023 following a rise in the 3rd quarter. However, import levels remained below the record high set in the March quarter of the same year.

The first quarter of 2023 witnessed a record in US imports of lithium-ion batteries as seen in the chart below. This is primarily due to market anticipation of robust EV sales for the year ahead.

Source: S&P Global

Factors Behind US Import Decline of Critical Minerals

Analysts attribute the subdued sales growth in Europe and the US during the second half of 2023 to various factors. These include a higher interest rate environment and a greater price premium for battery electric vehicles compared to internal combustion engine vehicles.

However, there are expectations for an uptick in EV demand in 2024.

According to a February report by S&P Global Mobility, the development of battery-electric vehicle (BEV) sales in the US is expected to continue to grow through 2024. This projection nearly doubles the number of BEV models available by the end of the year compared to 2022.

While it’s true that growth in the global EV market has been decelerating, it’s crucial to maintain the right perspective. In 2021, EV sales more than doubled, experiencing an extraordinary growth rate of nearly 120%.

Remarkably, in January of this year, over 1.1 million EVs were sold worldwide, compared to 660,000 sold during the same period last year, marking a new monthly global sales record. This represents a remarkable 69% year-over-year growth, significantly surpassing the average growth rate observed in the previous year.

This growth trend in EV sales means lithium production must also keep up.

Trends in US Lithium Imports and Battery Market

In the fourth quarter of 2023, US imports of processed lithium totaled 4,026 metric tons, marking a 6.8% increase year over year. Market Intelligence data reveals that Argentina and Chile contributed 51.6% and 46.1% of these imports, respectively.

Raw lithium undergoes processing and subsequent refinement into chemicals suitable for use as cathode materials and electrolyte solutions in batteries. During the December quarter, the US imported 15,960 metric tons of refined lithium. That represents a 3.5% increase from the 15,426 metric tons imported during the same period in 2022.

Canada accounted for 63.4% of the US imports of refined lithium in the fourth quarter, according to the data.

According to forecasts from Commodity Insights, China would see a decline in its market share in lithium-ion battery production between 2023 and 2030.

Meanwhile, North America’s lithium-ion battery capacity is anticipated to grow at a rate of 22% during this period. The bulk of this growth would take place in the United States, with two projects also slated for Canada.

READ MORE: Accelerating Lithium Demand and Construction Surge in US and Canada

Additionally, US imports of critical minerals amounted to 612,590 metric tons in 2023. That represents a significant decline of 39.1% year over year.

US Dependency in Critical Mineral Imports

Market Intelligence data further reveals that critical mineral imports totaled 195,805 metric tons in the 4th quarter of 2023. That accounts for a 6.6% increase from the 183,621 metric tons recorded in the fourth quarter of 2022. Notably, Gabon accounted for 47.1% of US imports of critical minerals during the same quarter.

Globally, trade in critical minerals has experienced substantial growth over the past two decades, with an average annual growth rate of 10%. The value of imports has nearly doubled in five years, soaring from $212 billion in 2017 to $378 billion in 2022, according to World Trade Organization data.

Particularly noteworthy is the significant increase in trade in helium and lithium which showed impressive annual growth rates of up to 53% during the same period.

In 2022, China emerged as the largest importer of critical minerals, comprising 33% of the global total. Following China, the European Union accounted for 16%, while Japan and the United States both stood at 11%.

The transition towards a more sustainable future necessitates access to various critical minerals vital for transitioning to the green economy. However, the US currently faces a significant reliance on imported nonfuel minerals, potentially exposing vulnerabilities in the nation’s supply chains.

According to data from the U.S. Geological Survey (USGS), the United States is entirely dependent on imports for at least 12 key minerals identified as critical by the government. Notably, China emerges as the primary source of imports for many of these critical minerals, as well as numerous others.

The graphic illustrates America’s import dependence for 30 key nonfuel minerals, highlighting the primary import sources for each mineral.

The decline in US critical minerals imports amidst EV market fluctuations underscores supply chain complexities. Despite subdued demand in 2023, projections suggest future growth. Global trade in critical minerals surges, emphasizing the need for strategic domestic resource management to secure a stable supply for the green economy.

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XPRIZE Launches New Competition: Water Scarcity

March 15, 2024/in Uncategorized /by

Xprize Foundation, a non-profit organization that encourages technological development, has introduced its latest initiative – the XPRIZE Water Scarcity competition. This groundbreaking competition offers a total prize purse of $119 million over five years.

XPRIZE operates highly impactful, incentivized prize competitions that tackle some of the world’s most pressing challenges. These competitions are structured to push the boundaries of innovation and creativity, driving participants to develop groundbreaking solutions that have the potential to transform the world for the better.

At the heart of an XPRIZE competition is a powerful incentive structure encouraging individuals, teams, and organizations to channel their ingenuity and expertise toward addressing complex global problems.

In 2021, XPRIZE launched the Carbon Removal competition. It aimed to encourage the development of innovative CO2 removal solutions to cut emissions. In April 2022, the competition then revealed the 15 winning teams which received $1 million each to fund their projects. This initiative has been closed this year.

Tackling the Global Water Crisis

The new XPRIZE competition offers a total prize of $119 million, made possible by the Mohamed bin Zayed Water Initiative. The primary objective of this competition is to address the pressing issue of global water scarcity by fostering the development of reliable, sustainable, and affordable seawater desalination systems.

Although our planet is predominantly covered by water, only a minuscule fraction (0.5%) of it is readily available to support the needs of the Earth’s population, which currently stands at around 8 billion people.

Water scarcity is a critical issue affecting 80% of the global population, posing serious threats to communities worldwide. With the water demand projected to outstrip supply by 40% by 2030, urgent action is needed to address this looming crisis.

However, traditional desalination methods face significant challenges.

One of the major drawbacks of these methods their negative environmental impacts, worsening the very issues they aim to address. The energy-intensive nature of desalination processes leads to increased carbon emissions and energy consumption, further contributing to climate change.

Roughly 2.5% of the world’s total energy consumption is dedicated to treating contaminated water and managing water supply systems. Additionally, a significant portion of greenhouse gas emissions, approximately 60%, is attributable to energy consumption.

The carbon footprint linked to the reverse osmosis (RO) desalination process of seawater falls within the range of 0.4 to 6.7 kilograms of CO2 per cubic meter. This implies that desalinating 1000 cubic meters of seawater could potentially result in emitting up to 6.7 tons of CO2.

Existing desalination methods not only pose significant environmental risks but also remain financially out of reach for many low- to medium-income countries. Consequently, there is an urgent need for innovative solutions that can effectively harness Earth’s vast ocean water resources.

This is what the XPRIZE water competition tries to address.

Innovating Solutions for a Thirsty World

The XPRIZE Water Scarcity competition aims to address the challenge by encouraging participating teams to develop novel desalination technologies. These technologies will pave the way for a future where clean water is abundantly available to all.

Competing teams are encouraged to develop solutions that not only address water scarcity but also contribute to broader sustainability goals, including climate action and ecosystem protection. Winning teams should excel at creating desalination technologies that possess several key characteristics:

Scalability
Cost-effectiveness
Reliability
Resilience in changing climate
Environmental sustainability

XPRIZE Water Scarcity is a multi-track competition, divided into two distinct tracks. Each track has its own objectives geared towards making a significant impact on global water availability.

Track A: The New Desalination System. This track offers a prize pool of $70 million and focuses on developing innovative desalination systems. Within this track, there are also Moonshot Awards totaling $20 million, intended to incentivize breakthrough innovations in desalination technology.
Track B: Novel Membrane Materials. With a prize pool of $9.5 million, Track B concentrates on the development of novel membrane materials for desalination processes.

Detailed competition guidelines and entry requirements are accessible in the Guidelines document by XPRIZE. Below are important milestones and timeline to remember.

The success of the XPRIZE Water Scarcity competition holds the potential to make a profound impact on global water security and environmental sustainability.

It can help unlock access to the vast reserves of seawater, make up more than 96% of Earth’s water resources. By incentivizing the development of new, reliable, cost-effective, and sustainable desalination solutions, the prize aims to address the root causes of water scarcity and alleviate water stress worldwide.

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Is Biden’s $8 Billion American Climate Corps Budget Worth It?

March 14, 2024/in Uncategorized /by

President Joe Biden has submitted a request to Congress for $8 billion to fund a New Deal-inspired jobs program, the American Climate Corps, aimed at combating climate change across the United States.

The proposal, outlined in the president’s 2025 budget, entails allocating the fund over a decade to support the hiring of 50,000 new workers annually by the year 2031. The initiative comes in response to President Biden’s recent pledge to triple the workforce of the American Climate Corps program. It serves as the climate army of the current administration, while opponents call it a “woke and wasteful program”.

In the ongoing battle against climate change, the program emerges as both a beacon of hope and a lightning rod for controversy. Its supporters champion its potential to create jobs and combat environmental challenges. However, critics question its efficacy, funding sources, and long-term impact.

The program seeks to emulate the spirit of the Green New Deal by providing employment opportunities to young individuals. It garnered support from Democratic lawmakers including Representative Alexandria Ocasio-Cortez and Senator Ed Markey.

About $10 billion initially designated for the program was omitted from President Biden’s landmark climate legislation, the Inflation Reduction Act. However, last September, the White House announced a scaled-back version of the initiative.

What is the American Climate Corps Program?

Introduced in 2023, the ACC represents the latest initiative aimed at bolstering employment opportunities within the emerging clean energy sector. It was originally envisioned to engage 1.5 million young people.

RELEVANT: Transforming the American Clean Energy Landscape Under Biden’s Era

The program collaborates with federal agencies such as the Department of the Interior, Department of Labor, and Department of Energy, as well as organizations like AmeriCorps, to facilitate recruitment and training processes. It aims to provide training to young Americans, equipping them with the skills necessary for roles in various areas. These include the following:

Restoring coastal wetlands
Building community resilience against natural disasters
Deploying renewable energy infrastructure, and
Implementing energy-efficient appliances.

The administration intends to recruit around 20,000 individuals to perform these various roles.

According to the White House, around 50,000 Americans have expressed interest in participating in the job training program. The program offers opportunities for young people to earn $15 per hour while acquiring skills in wildfire prevention, forest management, and other areas.

President Biden’s American Climate Corps draws inspiration from the former Pres. Roosevelt’s Civilian Conservation Corps. It’s a New Deal program launched in 1933 to combat the Dust Bowl and the Great Depression challenges.

Civilian Climate Corps

The Pros and Cons of the ACC Program

However, the new Climate Corps has faced criticism from Congressional Republicans, who are unlikely to approve it in its current form. The conservative think tank Americans for Tax Reform has publicly criticized the program. Grover Norquist, the president of the organization, characterized the program as constructing an “extralegal political machine” using taxpayers’ money.

In gist, here are the benefits and challenges of the current administration’s American Climate Corps program.

The Pros of ACC:

Job Creation. The ACC aims to create over 20,000 new jobs by training them in various fields related to climate change mitigation and clean energy.
Addressing Climate Change. The program focuses on combating climate change by undertaking tasks such as restoring wetlands, building resilience against natural disasters, deploying renewable energy, and promoting energy-efficient practices.
Incentives and Collaboration. It incentivizes participation through programs like AmeriCorps and fosters collaboration between federal agencies, states, labor unions, nonprofits, and private sectors to address the climate crisis.
Potential for Economic and Environmental Benefits. The program not only creates job opportunities but also helps in mitigating the effects of climate change. Thus, it can potentially satisfy both economic and environmental objectives.

The Cons of ACC:

Dependence on Participation. Success of the program relies on the willingness of young Americans to undergo the necessary training, which may not be universally embraced.
Lack of Specifics. There’s criticism regarding the lack of clarity on how the program will effectively combat climate change and reduce emissions, leading to uncertainty about its long-term impact.
Political Opposition. Some individuals, particularly Republicans, may oppose the transition to clean energy jobs, which could affect the program’s implementation and support, especially in the context of upcoming elections.
Uncertainty of Effectiveness. While the program is seen as a positive initiative, its effectiveness and worthiness of government funding remain uncertain without detailed plans on how it will achieve its goals and address the environmental crisis.

In conclusion, the American Climate Corps Program offers potential benefits such as job creation and climate change mitigation. However, its success hinges on addressing challenges like participation, clarity of objectives, political opposition, and demonstrating effectiveness in achieving its goals. So long it tackles these concerns, the program could be worth funding.

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What’s Inside the US President’s 2025 Budget for Climate?

March 14, 2024/in Uncategorized /by

The Biden-Harris Administration has unveiled the President’s Budget for Fiscal Year 2025, marking a continuation of the administration’s efforts to advance economic growth, address inflation concerns, and bolster key social programs. Notably, the budget outlines a substantial increase of almost $27 billion for climate programs across various US agencies. It also includes funding for international climate finance initiatives.

One significant aspect of the budget is the Department of Energy’s (DOE) allocation, which sees historic investments aimed at laying the groundwork for a clean and equitable energy economy. These investments are intended to support the United States in achieving its goal of reaching net zero emissions by 2050.

Secretary of Energy Jennifer Granholm emphasized the administration’s aim to create an inclusive clean energy economy that benefits all communities. She remarked that:

“President Biden’s budget request reflects his commitment to building a clean energy future that is made in America, powered by American workers.”

The document outlines how the 2025 budget would address climate crisis through clean energy innovation, resilience, and resource protection. Here are the key budget items and highlights to take note.

Lowering Energy Costs in Rural Areas

The budget aims to build upon the President’s Inflation Reduction Act, aiming to reduce energy expenses for households, expand clean energy initiatives, overhaul rural power production, and generate numerous well-paying jobs across rural America.

Funding is allocated for loan guarantees for renewable energy systems and energy efficiency enhancements for farmers and small rural enterprises. It also includes support for rural electric loans to promote additional clean energy projects, energy storage, and transmission initiatives.

Investing in Clean Air and Health

The proposed budget allocates $1.5 billion for the Environmental Protection Agency’s Office of Air and Radiation. The goal is to continue the development of national programs, policies, and regulations focused on controlling air pollution and radiation exposure.

Additionally, $8.2 billion is earmarked for the DOE to address legacy waste and contamination in communities. There’s also funding for toxic substances control enforcement by the EPA. These investments are aligned with the Justice40 Initiative, aimed at benefiting disadvantaged communities.

Creating Jobs with Clean Energy Infrastructure

A significant portion of the budget, amounting to $1.6 billion, is designated for the Department of Energy to support clean energy workforce and infrastructure projects nationwide. This includes the following initiatives:

Weatherizing and retrofitting homes for low-income individuals ($385M),
Manufacturing clean energy components domestically ($113M),
Transitioning Tribal homes and institutions to renewable energy ($95M), and
Bolstering the resilience of the grid to integrate clean energy sources ($102M).

These efforts would create employment opportunities while advancing the administration’s climate goals.

Building Clean Energy Innovation Pipeline

The budget further allocates $8.5 billion to DOE for advancing clean energy innovations, targeting areas like offshore wind, industrial heat, sustainable aviation fuel, and grid infrastructure. Over $325 million supports research on sustainable critical minerals and materials essential for clean energy technologies.

Additionally, $76 million funds methane leak detection technologies, and $150 million supports advanced nuclear reactor demonstrations with high-assay, low-enriched uranium (HALEU). It also provides $30 million to accelerate commercial demonstration projects via national laboratories.

Enhancing Climate Resilience

The budget proposes an investment of $23 billion in climate adaptation and resilience efforts across the federal government. The focus is on mitigating the impact of extreme weather events fueled by climate change.

Funding will support initiatives to assist the wildland firefighting workforce, aid farmers, ranchers, and forestland owners in adapting to climate change while conserving natural resources, and advance climate resilience strategies nationwide.

Expanding American Climate Corps (ACC)

Last year, the Administration unveiled the ACC, aiming to mobilize a diverse cohort of over 20,000 workers dedicated to advancing clean energy, conservation, and climate resilience efforts. Now, in 2024, the first cohort of ACC members would embark on their service.

The budget includes mandatory funding to expand the ACC, aiming to mobilize additional 50,000 ACC members annually by 2031. The ACC aims to train and engage a diverse workforce in projects addressing climate change across communities in the country.

Strengthening Global Climate Leadership

Apart from domestic investments, the budget seeks to fulfill President Biden’s commitment of $11 billion for international climate finance. It also supports a $3 billion contribution through mandatory funding to finance the Green Climate Fund, building on previous international climate finance efforts undertaken during the administration.

These initiatives underscore the Biden administration’s commitment to addressing climate change through comprehensive domestic and international strategies. Collectively, they aim to drive sustainable economic growth while mitigating the impacts of climate change on communities and ecosystems.

The post What’s Inside the US President’s 2025 Budget for Climate? appeared first on Carbon Credits.

Shell to Buy 22,500 Biochar Removal Credits from The Next 150

March 13, 2024/in Uncategorized /by

The Next 150, a prominent carbon removal developer and operator, has inked a significant deal with Shell Environmental Products aimed at accelerating the adoption of biochar technology.

Under their 5-year agreement, the biochar producer will supply Shell with carbon removal credits of up to 22,500 generated from its large-scale facility in Mexico. This agreement represents one of the first transactions involving carbon removal credits from Mexico’s largest biochar project.

Patrick Atanasije Pineda, Managing Partner at The Next 150, expressed enthusiasm about the partnership, noting that:

“Shell Environmental Products’ support marks a significant step forward in our strategy to scale the biochar pathway of carbon removal across Latin America. Large volume as well as long-term offtake agreements from global companies are key to unlocking growth capital and project finance in the global south.”

Accelerating Carbon Removal with Biochar

Biochar production involves capturing carbon from the atmosphere through photosynthesis by utilizing biomass, such as agricultural waste. This biomass undergoes thermochemical processing to convert it into stable carbon. It can be stored long-term in soil or incorporated into construction materials.

Source: Carbonfuture

According to the World Economic Forum, Biochar Carbon Removal (BCR) isn’t just an option for achieving net zero targets—it’s imperative. BCR can remove between 0.44 to 2.62 gigatons of CO2 annually. As such, it can address up to 35% of the carbon removal requirements in scenarios aimed at stabilizing the climate.

Remarkably, biochar receives only about 12% of CDR funding but accounts for 94% of delivered carbon credits in 2023. Moreover, biochar comes at a significantly lower cost compared to other durable CDR approaches. It has an average cost of $179 per ton of CO2, much lower than the $388/ton average CDR price.

In North America, the largest biochar production facility is under construction in Canada. The Port-Cartier facility is the country’s first industrial-scale biochar production plant, representing a great milestone in Canada’s net zero efforts.

The Next 150 current biochar project is undergoing third-party audit and certification with Puro.Earth, a leading platform for engineered carbon removal, majority owned by NASDAQ.

Shell Environmental Products will proceed to offtake the credits upon approval of the project, solidifying its commitment to environmental sustainability.

Shell Environmental Products operates as a team dedicated to collaborating with clients to integrate carbon credits into their climate strategies. Their primary focus lies in sourcing and trading carbon credits and other environmental products.

The portfolio curated by the team consists of projects aimed at various objectives. These include carbon removal from the atmosphere, emission avoidance, and emission reduction.

GBS Redefines Biochar Removal Solutions

Since its inception in 2023, The Next 150 has made remarkable strides in establishing a fully operational biochar production venture. The Swiss-based carbon removal company is doing it through its subsidiary, GBS (General Biochar Systems).

GBS’s Guanajuato plant marks the initial phase of their waste-valorization and climate-tech initiatives in Mexico. Using GBS’s advanced pyrolysis process, biochar is created by subjecting biomass to high temperatures in a controlled oxygen-deprived environment, effectively mineralizing its carbon content.

Image from GBS

The deployment of biochar facilitates carbon removals through its application in long-term storage solutions like sustainable agriculture. With the capacity to process up to 20,000 tons of waste annually, the facility will produce 6,000 tons of biochar alongside byproducts such as bio-oil and hydrogen.

Over the next decade, this project is estimated to capture 150,000 tons of CO2 equivalent. If that happens, it would be the largest biochar initiative in Mexico. In comparison, the Canadian biochar facility can capture 75,000 tonnes of CO2 per year.

This initiative exemplifies the company’s rapid progress and unwavering dedication to providing high-quality carbon removal solutions. As the biochar production venture advances through the certification phase with Puro.Earth, the issuance of the first batch of credits is anticipated by Q3 2024.

In Europe, a Danish engineering company produces biochar from poop with its groundbreaking biomass treatment technology.

GBS embodies the company’s commitment to making a meaningful and lasting contribution to decarbonization. Looking ahead, it aims to expand its biochar production capacity, adding at least 2 more plants in 2024 and 2025.

The partnership between The Next 150 and Shell Environmental Products signifies a significant advancement in accelerating the adoption of biochar technology for carbon removal. This collaboration underlines the importance of large-scale, long-term agreements in driving capital and project finance in carbon removal solutions.

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