Olaf Scholz led Germany's Social Democrats (SPD) to an unexpected win in the 2021 elections held in September. He now needs to finalise a coalition with the Green Party and the pro-business FDP before forming a government and becoming chancellor. Like his predecessor Angela Merkel, Scholz has said he wants to become a "climate chancellor". Kerstine Appunn and Benjamin Wehrmann at Clean Energy Wire try to understand what his climate and energy … [Read more...]
Green Finance standards: the EU Taxonomy and Chinaâs âCatalogueâ
The EU Taxonomy was published in June 2020. It is the first official document to define and classify what is a truly sustainable economic activity in Europe. Six months later Chinaâs regulators published their own version, a new edition of the China Green Bond Endorsed Project Catalogue (the Catalogue). Both documents will act as important standards for green finance institutions and investors in Europe and China. They are intended to improve … [Read more...]
EU-India cooperation: how to tap the large potential for climate action
India is the worldâs fifth largest economy, the second most populous, and over the next few decades is expected to see energy demand grow more than any other country. Ritu Ahuja and Mekhala Sastry at TERI, Abhishek Kaushik at the Centre for Global Environment Research, and Alexandra Deprez and Lola Vallejo at IDDRI look at Indiaâs challenges and which areas show the most potential for partnership with the EU. They focus on five themes: energy, … [Read more...]
“China and Europe – Energy Efficiency, the foundation of our net-zero future” [EVENT highlights and VIDEO]
We present the videos of the third of our three, 4-session workshops on the opportunities for European energy solutions providers to take part in Chinaâs energy transition, held on April 13th and 14th 2021. In this workshop the theme was efficiency, with special reference to finance, buildings, heating and cooling, and smart solutions. Both regions need to go beyond the efficiency "easy wins" so we take a close look at what Europe can offer as … [Read more...]
EU Taxonomy: 5 principles for avoiding unintended consequences
The EU Taxonomy is a classification system that defines a list of environmentally sustainable economic activities. If your activity is on the list you should see green finance flow your way. Hence the heated debate over what is âgreenâ. Itâs of vital interest to sectors like gas and nuclear (itâs green compared to the coal it replaces) as it will have a major effect on the cost of capital and therefore the future of the sector. Indeed, any … [Read more...]
Will Germanyâs âEEGâ energy law amendments make renewable targets harder to meet?
Germanyâs Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz/EEG), now 20 years old, is under discussion as a new amendment is supposed to come into force on January 1st 2021. Simon Göss at Energy Brainpool takes a detailed look at the highlights, including the new and higher targets, the financial role of municipalities, clean electricity subsidies, and solar and wind tender volumes. He explains there has been serious criticism of the … [Read more...]
Will Saudi Arabia build the worldâs largest green hydrogen and ammonia plant?
The Gulf is already a major producer and consumer of hydrogen, mainly for fertilisers and specialty chemicals. Like most hydrogen produced globally, it is the âgreyâ kind made from hydrocarbons. But the regionâs low renewable power costs and abundance of land give it the key components for the industrial scale production of green hydrogen. So in July, the Saudi model city of Neom (Neom means ânew futureâ) and ACWA Power signed a joint venture … [Read more...]
UKâs COP26 Presidency will be the first big test of its post-Brexit diplomatic skills
Novemberâs COP26 will arguably be the most important since the Paris Climate Agreement of 2015. By then, all signatory nations are required to submit their new and improved nationally determined contributions (NDCs) that set a credible pathway towards reducing their emissions. So far only the Marshall Islands, Suriname, and Norway have done so. Lucien Chabason and Lola Vallejo at IDDRI ask whether the UK teams behind their new COP26 President, … [Read more...]
How will we pay for the European Green Deal?
The European Green Deal (EGD), announced on December 11th, sets a 2050 target to make the continent become the first to achieve carbon neutrality. Itâs a long-term plan â not yet law â to re-design all EU instruments and includes 50 specific policy initiatives. But nobody yet knows how much money is needed, who will pay (or lend) it, and who will get it. So tense discussions will now begin between the likely payers (such as Germany, the … [Read more...]
UN Climate Summit seeks NDCs, LTSs with deep sectoral changes
To pile on the pressure over climate negotiations, the UN Secretary General Antonio Guterres is convening a special Climate Action Summit, starting today. Nations are being pressed to accelerate their ambitions and back them up with concrete and realistic plans. The summit will be focussed on six âaction areasâ: energy transition; industry transition; infrastructure, cities and local action; nature-based solutions; resilience and adaptation; … [Read more...]
Member States must decide: cash for climate or cash for carbon?
Over 3 billion euros of EU money meant for Europeâs poorer regions could be up for grabs by the fossil fuel industry if EU Member States do not change their current position on 25 June. The funding, which is part of the 374 billion Euro âCohesion Policyâ pot, was - in the European Commissionâs proposal - meant to go to sustainable economic activities. Yet if EU Member States get their way, a significant portion of the funding would be made … [Read more...]
GGFI: âAvoid carbon bubble, choose financial centre wiselyâ
We already have indexes that pick green stocks, and rank nations by their policies. The Global Green Finance Index (GGFI) ranks the worldâs financial centres â London, New York, Singapore, Shanghai, etc. â by the policies and support they give to green investments. Old ways of valuing assets, particularly in fossil fuel companies, are being questioned say Mike Wardle and Michael Mainelli of the think tank Z/Yen, one of the creators of the index. … [Read more...]
Energy Efficiency targets: Time to ramp up investment in buildings, industry and vehicles
Energy efficiency investment rates need to double now, and then double again in 2025, to meet energy efficiencyâs obligation to hitting the Paris targets. Right now there is a âŹ130bn annual energy efficiency investment gap in Europe. Peter Sweatman, Rapporteur for EEFIG, looks at the assets themselves and says we need to productise the measurement of their energy efficiency, and then legislate. Thatâs how to make energy efficient homes, offices, … [Read more...]
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