The seven “hardest to abate” industries together account for 30% of global greenhouse gas emissions. They are aviation, steel, shipping, cement, aluminium, trucking and chemicals. John Matson at RMI explains how a growing number of sector-leading corporates in aviation, steel and shipping are now openly backing net-zero pathways. He quotes CEOs and top executives (ArcelorMittal, United Airlines, Trafigura) on what they say they are determined to … [Read more...]
CBAM needs universal adoption of methods for measuring carbon intensity
Europe needs to account for the emissions of imported goods. That cannot happen without the international agreement on standards and certification systems for the carbon intensity of all steps in the value chain for all relevant products. Dolf Gielen and Francisco Boshell at IRENA and Massamba Thioye at the UNFCCC explain that several such systems exist around the world, but they need to be harmonised and widely adopted to truly reflect what is … [Read more...]
EU “Fit for 55”: how it impacts the EU ETS to accelerate emissions reductions
Christoph Kellermann, Lun Zhou and Simon Göss at Energy Brainpool explain how the EU’s new “Fit for 55” proposals, released in July, will impact the EU Emissions Trading Scheme (EU ETS), hailed as one of the most effective ways of reducing emissions. The authors cover the changes to the existing ETS, the planned new ETS for road transport and buildings, the controversial Carbon Border Adjustment Mechanism (CBAM), and the new CO2 standards for … [Read more...]
EU’s Carbon Border Adjustment Mechanism lacks the detail to drive industry’s relocation near clean energy
High emissions industries should be relocated to where the cheap clean energy is. So long as the shipping costs (in terms of price and emissions) aren’t prohibitively high, those locations can be anywhere in the world. To get the calculations right, Carbon Border Adjustment Mechanisms (accounting for the emissions of imported goods) must be harmonised internationally. They must also – crucially – count all relevant emissions. But the EU’s draft … [Read more...]
Where to start building Hydrogen pipelines? Near industrial hubs for steel, ammonia, and plastics
Converting gas pipelines to carry hydrogen is going to be expensive. We don’t even know how much hydrogen we’ll really need in 2050, given electrification – the cheaper and preferred option to replace fossil fuels – will always be the first option. But we do know that certain industries like steel, ammonia, and plastics will always need hydrogen as a feedstock. Writing for WEF, Kevin Tu, Matthias Deutsch and Gniewomir Flis at Agora Energiewende … [Read more...]
EU-India cooperation: how to tap the large potential for climate action
India is the world’s 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 India’s challenges and which areas show the most potential for partnership with the EU. They focus on five themes: energy, … [Read more...]
German Hydrogen scenarios: 271 TWh of Green Hydrogen by 2040?
Germany is putting in place plans and legislation to launch its green hydrogen economy. Sila Akat and Simon Göss at Energy Brainpool look at the laws and regulations, existing and expected soon, that are driving this game-changing ambition. They have also created five scenarios (two are explained in detail here) for production, based on those plans. The reference “Stated Policies” scenario predicts an increase of electrolyser capacity to 5 GW by … [Read more...]
Industrial Clusters: the logic of co-location now has a new driver, net-zero emissions
Industrial clusters locate plants and factories in one area to share resources, problems and solutions. They already have a long history of collaboration. But the logic of co-location now has a new driver: net-zero emissions. The sectors can range from heavy industry (e.g. steel and cement) to light (food, paper, etc.) The challenge is to make the most of new clean technologies and processes, and at the same time maintain or increase … [Read more...]
Carbon Border Adjustments: can the EU create a mechanism that is fair?
The proposed EU carbon border adjustment mechanism (CBAM) is meant to control imports of high-carbon goods from places that are not bound by Europe’s rising de-carbonisation rules. The obvious targets are commodities like steel, aluminium and cement. But it could be extended to all EU imports, including agricultural products. Michel Colombier at IDDRI warns that the EU is in danger of not listening nearly enough to its trading partners. He … [Read more...]
Decarbonising Industry is key to China’s net-zero strategy
China has committed to a CO2 emissions peak before 2030 and carbon neutrality before 2060. It’s 14th 5-year plan will be released in March, followed by sector-oriented plans. For the first time it will include a dedicated plan addressing climate change. Dolf Gielen, Yong Chen and Paul Durrant at IRENA start by laying out China’s energy mix for scrutiny, then dive into its industrial sector which accounts for 60% of gross final energy use. Success … [Read more...]
World’s biggest Steel manufacturers are committing to Hydrogen and CCS
The world’s leading steel makers have announced pledges to reduce emissions, aiming for net-zero by 2050 or sooner. They are committing to various new technologies still not proven at scale: making steel with hydrogen, and some with strategies that include carbon capture. They are putting their money where their mouth is. The list is impressive and includes ArcelorMittal (the world #1), ThyssenKrupp, Voestalpine, SSAB/LKAB/Vattenfall, Nippon … [Read more...]
HYBRIT project: Sweden goes for zero-carbon steel
Europe’s largest iron ore producer, LKAB of Sweden, plans to invest almost €40bn over the next two decades in emissions-free steel production. LKAB, along with Vattenfall and SSAB, are behind the HYBRIT project which intends to grow, fossil-free, Sweden’s steel industry. They will use hydrogen instead of coal as the “reducing agent” to remove the oxygen from the iron ore. Thomas Koch Blank at RMI runs through their strategy and the implications … [Read more...]
How will China build its Hydrogen economy?
What are China’s hydrogen prospects? That’s the question Kevin Tu at the IFRI Center for Energy & Climate attempts to answer in a report that he summarises here. He points at the growing number of policies that show China is taking hydrogen very seriously. China wants to expand production as well as build up end uses in transport, steel and cement manufacturing, and storage. The main drivers are the Covid pandemic, energy security, the … [Read more...]
Little progress decarbonising Industry. Renewables can be the answer
The decarbonisation of heavy industry is making little progress. There are two main reasons. Firstly, there are no easy technology wins. Efficiency and carbon capture have been the favoured options. But efficiency gains have their limits, and carbon capture is still proving very expensive. Secondly, governments don’t want their home industries to lose competitiveness incurring costs reducing emissions. Dolf Gielen and Paul Durrant at IRENA say a … [Read more...]
IEA: Without accelerating clean energy innovations we cannot hit net zero by 2050
The impressive rise of renewables and energy efficiency, alone, will not be sufficient to meet the world’s 2050 emissions goal, says the IEA in its flagship Clean Energy Innovation report. New technologies, taken all the way through to widespread adoption by the market, must become an essential part of the net zero pathway. The stark warning is that existing policies to decarbonise shipping, trucks, aviation and heavy industry are not nearly … [Read more...]
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