Uncategorized – Page 55 – The Global Carbon Fund

Taiwan Sets Massive Target of 700K-Ton Blue Carbon Reserve by 2030

March 26, 2024/in Uncategorized /by

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.

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Microsoft to Purchase 95,000 Biochar Carbon Removal Credits from The Next 150

March 25, 2024/in Uncategorized /by

The Next 150, a carbon removal company, has entered into a 6-year purchase agreement with Microsoft to provide 95,000 tons of high-quality Carbon Dioxide Removal (CDR) credits produced by its General Biochar Systems (GBS) business unit’s biochar plant in Guanajuato, Mexico. This agreement marks a significant milestone for the company, aiming to become a leading supplier in the emerging biochar industry.

Patrick Atanasije Pineda, Managing Partner at The Next 150, highlighted the importance of this deal, saying that:

“Securing multi-year commitments like the one with Microsoft allows The Next 150 to mobilize large-scale biochar projects across Latin America, attracting institutional finance for project-level lending supported by creditworthy offtakes.”

Unlocking Carbon Removal Potential

Biochar Carbon Removal, or BCR, relies on pyrolysis – a process that uses high heat in a controlled oxygen-deprived environment to convert biomass into biochar. Biochar is a highly porous, stable, and durable form of carbon that can efficiently store CO2 for long periods.

The World Economic Forum hails biochar as the carbon removal’s jack of all trades. The biochar industry has vast potential, but its growth has been hindered by limited awareness and high production costs.

Enter biochar carbon removal credits. They offer a solution to these challenges, making BCR projects more economically viable. By addressing awareness and funding gaps, these credits unlock the full potential of biochar.

BCR provides a wide range of economic, environmental, and social advantages. In areas hardest hit by climate change, BCR can promote climate justice by directing mitigation benefits to where they are most needed, a concept underscored by the Intergovernmental Panel on Climate Change (IPCC) 2022 report.

The Next 150’s Biochar Journey

The Next 150 strongly believes in the power of biochar to help address climate change through BCR credits.

Founded in late 2022, The Next 150 is a Swiss climate-forward venture developer and operator. Within less than a year, its first biochar production facility, General Biochar Systems in Mexico, started operations.

GBS’ Guanajuato plant signifies the first step in their waste-valorization and climate-tech efforts in Mexico. Employing GBS’s sophisticated pyrolysis technique, biochar is produced by exposing biomass to elevated temperatures in a carefully controlled oxygen-deprived setting, leading to the mineralization of its carbon content.

By October 2023, the project began integrating its biochar into state-run quarry rehabilitation efforts to restore degraded landscapes and enhance biodiversity.

The company’s ongoing initiatives with local governments and civil society organizations aim to provide biochar to up to 23,000 local farmers as a sustainable soil amendment. Biochar offers additional benefits such as improved crop yields, reduced reliance on chemical fertilizers, and decreased plant stress during droughts.

Over the next decade, the project would capture 150,000 tons of CO2 equivalent. If achieved, it would constitute the largest biochar initiative in Mexico.

The carbon removal company will deliver high-quality BCR credits by mid-2024 on the Puro.Earth registry. It has two more plants expected to be operational in Latin America by 2025.

Days ago, The Next 150 closed a similar deal with Shell Environmental Products for five years. Shell will buy 22,500 biochar carbon removal credits from the company.

Microsoft’s Carbon Commitment

This time with Microsoft, the tech giant agreed to purchase 95,000 BCR credits from GBS. Microsoft has been pouring millions of dollars into carbon removal solutions. Last month, the giant bought carbon removal credits from regeneratively managed grasslands. And in 2023, Microsoft partnered with direct air capture companies to remove carbon from the atmosphere.

Under this current deal, Brian Marrs, Senior Director for Energy and Carbon Removal at Microsoft, commented:

“Our 6-year purchase agreement and ongoing collaboration with The Next 150 is a step forward towards our ambition to realize our carbon-negative goal by 2030 through a diversified portfolio of carbon removal.”

Globally, the biochar market size is projected to expand to around $633 million by 2032 as shown below.

As the climate crisis intensifies, The Next 150’s Biochar Carbon Removal (BCR) emerges as a versatile solution for carbon removal. Beyond sequestering carbon, its advantages extend to agriculture, construction, ecosystem health, and community well-being. For businesses seeking effective strategies to combat the climate emergency and meet climate targets, BCR offers a scalable technology.

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Africa Clean Sweeps into $900B Global Carbon Credit Economy

March 25, 2024/in Uncategorized /by

The value of the global carbon credit market is growing exponentially and has reached a record-breaking high of $909 billion in the last year. Africa is a continent with vast green energy reserves is looking ahead to amplify their share in worldwide carbon trading to fund their development projects.

Nonetheless, Africa is facing several challenges to combat climate change and adapt to green energy transition. The global participants in the United Nations Framework Convention on Climate Change (UNFCCC) have pledged to support developing nations like Africa by providing financial aid, infrastructure support, and technological assistance to enhance climate actions.

The graph shows the projected growth of the African carbon market.

Source: The Rockefeller Foundation

The African continent aims to maximize its carbon credit economy with the of launch the African Carbon Markets Initiative (ACMI). The key objectives are:

boost carbon credit potential,
increase access to clean energy
promote sustainable development
create job opportunities in the country

ACMI has etched a roadmap to dramatically expand Africa’s participation in the voluntary carbon credit market. Each initiative defined above has a budget outline, carbon credit value, and revenue target.

ACMI’s Bold Action Plan for Africa’s Carbon Market

The existing funding for Africa’s energy transition falls significantly short of the necessary amount. Thus, ACMI’s goals are essential to transform the financing landscape of the continent.

ACMI’s prime target is to generate 300 million carbon credits and unlock 6 billion annual revenues by 2030. By 2050, ACMI is targeting over 1.5 billion annual credits, leveraging over $120 billion and supporting over 110 million jobs.

ACMI has collaborated with the Integrity Council for the Voluntary Carbon Market (IC-VCM) and the Voluntary Carbon Markets Integrity Initiative (VCMI) and is exploring the local carbon markets to produce high-integrity carbon credits. Not only this, it’s actively working with some of the leading carbon credit buyers like Standard Chartered, Nando’s, and Exchange Trading Group.

The ACMI also believes that the voluntary carbon market can succeed with people’s trust in carbon credit policies and its purpose to bring a positive impact on the environment and livelihood of Africans.

Several African nations, including Kenya, Malawi, Gabon, Nigeria, and Togo, have volunteered to partner with ACMI to expand carbon credit generation. According to a market survey, these 7 countries collectively have the potential to produce < 300 million metric tons of CO2 equivalents.

To support this move, H.E Yemi Osinbajo, Vice President of Nigeria and ACMI said,

“Carbon markets can deliver tremendous benefits for Nigeria and Africa—creating jobs, driving green investment, and reducing emissions. Nigeria is putting the groundwork in place today so that in subsequent years, carbon credits become a major industry that will benefit our people.”

Africa’s Path to Prosperity: Harnessing the Green Opportunities

As discussed before, improving global collaboration on climate change, increasing Africa’s resilience to climate shocks, and employing locals are the pathways to Africa’s prosperity. Its vast renewable energy resources, both solar and wind, and the carbon sinks form the backbone of its economy.

The ACMI focuses on climate projects needed for Africa’s green energy transition. Some of them are reforestation, forest conservation, renewable energy investments, carbon-storing agricultural practices, and direct air capture. Investors receive carbon credits as offsets for their ongoing emissions by funding climate initiatives.

The International Renewable Energy Agency (IRENA) has estimated Africa’s solar photovoltaic (PV) technical potential is at 7,900 GW.

This makes the continent one of the world’s highest generators of solar power. Noteworthy, North Africa receives more than 2,000 hours of sunshine per year.

From reports, we found out that U.S.-based Husk Power has raised $103 million to build at least 1,400 mini-solar grids in rural Africa and Asia. The firm has captured the solar market in Nigeria, hitting the petrol and diesel industry hard.

This move clearly shows that fostering renewable energy in Africa could diminish dependence on fossil fuels and cut CO2 emissions. It could open avenues for economic growth, job opportunities, and poverty alleviation.

Here’s an interesting graph depicting Africa’s dominance in solar power over the rest of the world.

Source: Global Solar Atlas/ The World Bank

It is expected that by 2030, Africa could cut over 2 billion tonnes of carbon dioxide equivalent annually by reducing deforestation, preventing forest degradation, and expanding sustainable forest management. These efforts could further scale up tradable carbon credits.

The continent’s expansive forests- the Congo Basin rainforest, the Guinea-Congo Forest, the East African Coastal Forest, the woodlands, and the Savanna are enormous carbon sinks that have very high carbon credit potential.

In brief, the revenue potential of these green reserves can be realized only if Africa successfully addresses the obstacles hindering its socio-economic development. Green industrialization would thrive with the nation’s strong grip over sustainable financing mechanisms, promising a robust and equitable future.

Last but not least, industrial growth and job boosts are pivotal for Africa’s prosperity. The leaders of the country must ensure access to clean energy and essential services for its people. However, the outcome of these investments and the surge of the African carbon credit market to bring meaningful climate benefits are yet to be witnessed…

Let’s wait and watch!

Must Read: Seafields Unveils 1 Billion Carbon Removal Project Off West Africa (carboncredits.com)

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Shell Retired 20 Million Carbon Offsets in 2023, Weakens 2030 Climate Goal

March 25, 2024/in Uncategorized /by

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.

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.

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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Novocarbo Secures $27M for Carbon Removal Parks

March 22, 2024/in Uncategorized /by

German climate-tech company Novocarbo has raised €25 million ($27M) in growth funding to establish a pan-European infrastructure network for its net zero solution. Partnering with a French investor, Novocarbo aims to launch Carbon Removal Parks across Europe to drive decarbonization.

SWEN Capital Partners, a prominent European infrastructure firm, is backing Novocarbo’s mission to remove 1 million tonnes of CO2 by 2030. Novocarbo’s funding milestone represents one of the largest CDR investments in Europe in recent years.

With support from SWEN Capital Partners’ SWEN Impact Fund for Transition 2, Novocarbo plans to expand its Carbon Removal Parks network across the continent.

Novocarbo’s Carbon Removal Parks: A Pan-European Climate Solution

Novocarbo specializes in constructing and operating Carbon Removal Parks, integrating multiple climate actions:

Extracting CO2 from the atmosphere,
Generating renewable energy, and
Producing biochar, a sustainable carbon material.

Through Biochar Carbon Removal (BCR) technology, these parks produce climate-neutral heat. This biomass-produced heat offers a pathway for companies and municipalities to decarbonize their energy supply.

What is BCR?

BCR is a carbon removal method that uses carbon stored in biomass, obtained through photosynthesis, to extract carbon from the atmosphere.

Biomass, which comprises organic residues, undergoes a high-temperature heating process in the absence of oxygen, known as pyrolysis. During this conversion, the organic compounds in the biomass are thermally decomposed, with volatile components transitioning into the gas phase.

The residual carbon is left in the form of biochar, a solid substance that is easily storable. This process can produce a range of products, including biochar and renewable energy.

Novocarbo’s Carbon Removal Parks, which combine CO2 removal with green heat generation, play a dual role in achieving net-zero emissions. Since its establishment in 2017, the Hamburg-based startup has launched three Carbon Removal Parks in Germany and expanded its team to over 35 employees.

Largest Carbon Removal Park in Germany; Image from Novocarbo website

Novocarbo boasts one of Europe’s largest distribution networks for biochar soil conditioners and has attracted corporate clients like Bayer and Swiss Re through its pioneering carbon projects and carbon removal credit trading.

Recently, Novocarbo secured 3 long-term carbon credit agreements totaling over 8,000 tonnes of CO2.

With the new funding, the company will expand its BCR solution further, offering a vital means of mitigating climate change. It will enable the company to scale up to 200 parks by 2033, bolstering Europe’s CDR and green heating infrastructure.

Advancing CDR as a Net Zero Solution

With SWEN CP onboard, Novocarbo gains a strategic partner to establish impactful net zero infrastructure across Europe. SWEN CP is known for its mission-driven investment approach focused on addressing environmental challenges.

As an impact fund with a clear sustainability objective, SWEN CP seeks to accelerate the transition to renewable energies and now, by investing in Novocarbo, aims to incorporate carbon removal solutions into its portfolio for the first time.

While reducing greenhouse gas (GHG) emissions remains crucial in combating climate change, the Intergovernmental Panel on Climate Change (IPCC) emphasizes that deploying CDR is essential to offsetting hard-to-abate emissions and achieving net zero emissions. The recent approval of the EU Carbon Removal Certification Framework (CRCF) underscores the importance of scaling CDR technologies to meet climate targets.

Biochar is a rapidly growing carbon removal sector, attracting significant investments and purchases from large companies. In 2023, it accounts for more than 90% of all CDR deliveries.

Last year, a Canadian biochar company secured $38 million in a Series B round to expand its production. Days ago, Shell agreed to buy biochar removal credits from a Mexico-based biochar producer.

Caspar von Ziegner, CEO Novocarbo, highlighted the role of biochar removal in mitigating climate change, saying that:

“Our only chance to limit global warming to 1.5 degrees is by unlocking the full potential of impactful net zero technologies like Biochar Carbon Removal… to bring hard-to-abate industries onto the much-needed net-zero path. Right here, right now, because the climate can’t wait.”

Novocarbo’s $27 million funding milestone speaks of a significant step in Europe’s climate mitigation efforts. Its Carbon Removal Parks, powered by BCR technology, could lead the charge in combatting climate change and achieving net zero.

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FortisBC Launches $50 Million Energy Retrofit Pilot to Cut Old Homes’ Emissions

March 22, 2024/in Uncategorized /by

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.

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.

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Decarbonizing California: The Golden State’s Uphill Battle in the Climate Journey

March 21, 2024/in Uncategorized /by

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.

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.

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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Gulf Oil Giants Saudi Aramco and ADNOC to Launch Sustainable Lithium Extraction Projects

March 21, 2024/in Uncategorized /by

The Gulf giants Saudi Aramco and ADNOC (Abu Dhabi National Oil Company) have been actively pursuing diversification of their revenue streams, aiming to explore profitable ventures beyond oil. This move is driven by the necessity to finance extensive state programs and, in Saudi Arabia’s instance, the Vision 2030 plan spearheaded by Crown Prince Mohammed bin Salman.

This plan entails substantial investments in futuristic projects across the Saudi deserts, necessitating alternative sources of income. One such exciting project is lithium extraction from brine.

The purpose aligns with the global shift to clean energy and capitalizing on the EV market of Saudi Arabia and the United Arab Emirates. The demand for lithium is also expected to surge as it’s the key component of EV batteries.

Aramco and ADNOC’s Ambitious Lithium Extraction Plans

As per reports, Aramco and ADNOC’s lithium extractions plan are in a nascent stage. They are aiming to introduce a completely new technology i.e. extracting lithium from brine. Middle East contributes to global 55% of brine production originating from Saudi Arabia, UAE, Kuwait, and Qatar.

Both companies are exploring ways to tap lithium-rich brine from the vast stretches of salars and oilfield brines and subsequently process it to extract superior quality lithium for EV industrial applications.

Lithium extraction is an exhaustive mining process, that leaves behind a significantly high carbon footprint. Not only this, refining the mineral from brine involves high cost and a low concentration of net product. To mitigate environmental and cost implications, both ADNOC and Aramco will be using Direct Lithium Extraction (DLE) technology.

DLE is a new-age innovative solution to produce high-grade commercial lithium at a low cost for the clean energy manufacturing industry. This technique employs a selective absorbent to extract lithium from brine water. The resultant solution is further purified to produce high-grade lithium carbonate and lithium hydroxide.

Unlike other methods, DLE efficiently eliminates crucial impurities, ensuring a superior quality end-product.

A Diagrammatic Representation of Direct Lithium Extraction (DLE) from Brine Technology

Source: ibatterymetals.com

While ADNOC has not completely disclosed its extraction plan, it’s certainly exploring the latest and advanced technologies to make a smooth transition.

Filtering the ultralight battery metal from saltwater has the advantage of bypassing the necessity for expensive and environmentally taxing open-pit mines or extensive evaporation ponds. Such traditional rare earth mining processes are widely used in Australia and Chile.

America’s key players like ExxonMobil and Occidental Petroleum have also hailed the lithium extraction process from brine. They intend to line up with major oil giants across the globe to divulge from high carbon-emitting fossil fuels.

Gulf Nations Riding High on the Lithium Surge Wave

The Middle East has embraced the electric vehicle revolution with robust investment. The EV market was valued at US$2.7 billion in 2023 and is predicted to hit US$7.65 billion by 2028.

The transition in the transport sector from oil to electricity has pushed the demand for lithium in the UAE and Saudi Arabia. Both nations are bolstering the production of Li batteries and EVs with significant investment.

The UAE, as a part of its commitment to achieving net-zero emissions target aims to have 50% of all vehicles on the road as electric and hybrid by 2050.

Saudi Arabia has already launched its domestic EV brand CEER Motors two years back projecting an ambitious plan to manufacture 500,000 vehicles/year by 2030. This would automatically boost lithium demand and promise long-term green prospects for the rare earth mineral.

A significant update from the news is- the Saudi-based mining company Ma’aden is ramping up its pilot facilities to extract lithium from seawater using membrane-based lithium extraction technology.

Ma’aden’s endeavors to extract lithium from seawater could play a crucial role in addressing the increasing demand for this vital mineral in Saudi’s EV market.

In recent developments, UAE’s KEZAD Group and Titan Lithium sealed a $1.4 billion (AED 5 billion) deal to construct a high-tech lithium processing plant in Abu Dhabi.

According to the KEZAD group, on completion, the plant will import ~ 150,000 tonnes of lithium annually from their mines located in Zimbabwe. It will undergo processing in Abu Dhabi.

Mohamed Al Khadar Al Ahmed, CEO of KEZAD Group has exuberantly expressed his views on this momentous deal,

“We welcome Titan Lithium Industries to Kezad and look forward to the project’s significant contribution to the UAE’s strategic vision of diversifying its economy and reinforcing its position in the global market.”

The top Gulf nations – Saudi Arabia and UAE have abundant oil resources. They enable them to undertake financial ventures with confidence. Aramco and ADNOC have already envisioned the rising trend of lithium demand in the EV manufacturing sector.

We shall keep you posted with the latest innovations, developments, and deals happening in the rapidly growing lithium industry and EVs in the Middle East towards global sustainability.

Further Reading: Saudi Aramco Net Zero Goal by 2050, with 16 Million Carbon Credits/Offsets

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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.

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