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TODAY'S CLIMATE AND ENERGY HEADLINES

Briefing date 16.03.2023
Budget does little to meet UK’s net-zero carbon goals, say campaigners

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News.

Budget does little to meet UK’s net-zero carbon goals, say campaigners
The Guardian Read Article

There is widespread coverage of yesterday’s budget in the UK, which has been criticised by campaigners for failing to advance climate action, the Guardian reports. The newspaper says the chancellor Jeremy Hunt was “silent on home insulation, oil and gas windfall tax, and onshore windfarms”, whereas he once again froze fuel duty on petrol and diesel. It adds that energy secretary Grant Shapps, speaking to MPs after the chancellor’s speech, “promised a far greater green push to come, after the budget”. It continues: “The announcement, due in a fortnight, will contain plans to boost hydrogen, wind power, solar energy and heat pumps, according to Shapps.” The UK government “will announce a raft of environmental policies by the end of March”, Bloomberg reports, citing “several people familiar with the matter”. It adds that the plan has been titled internally as “green day” and will include “measures to protect jobs in British industries such as electric vehicle production, which may come under threat from the US Inflation Reduction Act and the EU’s Green Industrial Plan, according to the people”. Reuters says the government will, by the end of the month, introduce measures to support energy security and the UK’s net-zero target, citing documents released with yesterday’s budget. It adds: “Oil and gas producers had called for floor prices to be applied to a windfall tax imposed last year and renewable power companies wanted better investment incentives, but finance minister Jeremy Hunt’s spring budget included no such actions.” City AM reports: “SSE boss urges [chancellor Jeremy] Hunt to match green energy goals so UK can face down US competition.”

The Financial Times says a freeze in fuel duty was extended by the chancellor in what it describes as a “£5bn budget giveaway to motorists”. It adds that the latest in a string of fuel duty freezes since 2011 was “welcomed by motoring groups”. However, it adds: “But the car industry, which received little attention in the chancellor’s budget on Wednesday, warned that the extension of the discount would make it harder to meet electric vehicle sales quotas that come into force next year.” The paper says: “Public transport advocates also criticised the fuel duty discount.” It notes that rail fares have risen by 33% over the past decade, according to campaigners.

The chancellor extended support measures for household energy bills, the Daily Telegraph reports. It says: “He said the move, which has been enabled by a fall in wholesale energy prices, would help families ‘bridge the gap’ until summer bills are expected to be lower.” The paper continues: “​​The chancellor also announced measures to try and develop clean energy supplies in the long run, including a plan to encourage investment in nuclear energy and support for projects to capture carbon dioxide emissions. Critics warned these did not go far enough, however.” Reuters also reports on the extension of household energy support, while the Press Association notes that despite the extension, households “are still facing a £67-a-month energy bill increase from April” due to the end of a separate energy bill support scheme. City AM reports new forecasts from consultancy Cornwall Energy, which says that household energy bills will fall to around £2,000 per year from July. City AM reports: “Energy bosses urge Hunt to bring in social tariff to support vulnerable households.” The Press Association reports: “Business groups have said their members will struggle to keep their doors open from next month as the government ignored calls for extra support to help companies pay their energy bills.”

The Financial Times says the chancellor announced a competition “to find the leading designs for small modular [nuclear] reactors with the aim of co-funding the development of the technology”. It adds: “But there was no extra funding for nuclear in the budget, with officials promising details on financing would be announced at the end of the month by energy secretary Grant Shapps.” The paper says the chancellor has an “aspiration to provide up to £20bn to be invested in carbon, capture and storage technologies during the next two decades”, but that “officials confirmed there would be no fresh cash before the next general election, due to be held by January 2025”. Reuters also reports on the news of a competition for small nuclear reactor designs. It notes how a previous competition for the technology was announced in 2015, but closed in 2017 “without moving beyond the initial, information gathering first stage”. The Daily Mail says the competition is a “boost” for Rolls Royce, which has been developing small reactor designs. Bloomberg says the chancellor pledged to classify nuclear as “environmentally sustainable” (subject to consultation) as it says the government “tries to attract billions of pounds of private capital to the sector”. The Times says this move puts “Scottish and UK governments… on course for another collision over nuclear power”. Another Bloomberg article reports the UK’s “£20bn big bet on carbon capture”, based around meeting a target of capturing 20-30m tonnes of carbon dioxide a year by 2030. This target was first announced in 2021.) The Press Association says the chancellor has been “accused of keeping his head ‘buried in the sand’ and committing public money to expensive solutions to the climate and energy crisis”. The Guardian reports similar concerns under the headline: “Jeremy Hunt accused of ‘£20bn gamble’ on nuclear energy and carbon capture.” The i newspaper quotes the acting head of analysis for the government’s advisory Climate Change Committee saying CCS will be needed as part of the solution to net-zero and saying of the CCS funding: “It’s positive to see the government start to take this seriously.” BusinessGreen says the government will issue another £10bn in “green gilts” following the budget. Another BusinessGreen article is titled: “A tale of missing ‘E’s: The green economy reacts to the spring statement.” Finally, Carbon Brief has published a detailed summary of all the budget’s climate and energy announcements.

Cyclone Freddy toll surpasses 300 as Mozambique counts bodies
Reuters Read Article

There is continuing coverage of Tropical Cyclone Freddy, which has now killed at least 225 people in Malawi, Reuters reports, as well as at least 21 in neighbouring Mozambique and at least 53 in Madagascar. It says: “Continued rain and power outages have hampered search and rescue efforts this week as the storm caused severe flooding, swept away roads and left bodies and houses buried in mud.” A Reuters “factbox” says the storm is “one of the deadliest storms to hit the continent in the last two decades”. It lists other major disasters to hit Africa since 2000, noting that “reliable data is scarce” before this.

Elsewhere, Reuters reports that floods have killed at least 10 people in southeast Turkey, which is already reeling from last month’s earthquakes. Another Reuters article reports: “Weather threatens Indian winter crops just before harvesting.” It says: “The maximum temperature in some wheat growing areas jumped above 39C earlier this month, nearly 7C above normal, according to weather department data.” Separately, Axios reports on flooding in the western US: “The latest atmospheric river to lash California has unleashed more historic rainfall, heavy snow and flash flooding across the state – and the worst river flooding in many areas is yet to come.” It explains: “Atmospheric rivers are narrow highways of moisture that can travel thousands of miles, from the tropics to mid-and-northern latitudes. Studies show climate change is intensifying these events as warmer air carries additional water vapour and also yielding sharper swings between precipitation feasts and famine in California.” The Washington Post says: “How California is using recent floods to prepare for future drought.”

Meanwhile, Reuters reports: “Germany’s cabinet on Wednesday agreed on a national water strategy aimed at coping with long dry seasons and heatwaves caused by climate change to ensure water security in Europe’s biggest economy in future.” BBC News reports that England had its driest February for 30 years, according to the Met Office, meaning some regions face the risk of drought. In related comment, Reuters carries a piece with the headline: “The water crisis is just as urgent as climate change. Investors need to wake up.” The article quotes a recent letter saying: “The global water crisis is a systematic financial risk to nearly all economies and the climate crisis multiplies these threats.”

EU to unveil plans for leadership in green industrial revolution
Reuters Read Article

The European Commission will later today “present the centrepieces of its strategy to ensure its industry can compete with the US and China in making clean-tech products and accessing raw materials required for the green transition”, Reuters reports. It says the commission will publish proposals for a Net-Zero Industry Act and Critical Materials Act as part of its “green deal industrial plan”. The newswire explains: “The EU will set a target of producing at least 40% of the clean tech products it needs by 2030, partly by streamlining the granting of permits for green projects and by fostering investment. The commission will propose simpler state aid schemes, allowing subsidies to promote green technology, with the possibility of offering tax breaks and using existing EU funds.” The Financial Times also previews today’s proposals: “Brussels is to impose curbs on imports of Chinese green technologies, demoting bidders for public contracts and making it harder for buyers to access subsidies.” It adds: “[T]he commission’s trade directorate is concerned that the proposed changes to the public procurement rule book could breach international rules, according to people familiar with the situation.” Bloomberg says the EU is “poised to stake claim in clean-tech race, pushing back at US”. The article reports: “The proposals – launched as a response to fears that crucial industries for the climate transition may flee Europe in favour of the US following its landmark package of subsidies – have stoked fears of a clean-tech arms race. In a recent report, the Brussels-based think tank Bruegel described the bloc’s planned response as ‘unabashedly protectionist’.” It adds: “The plans still need to be approved by the parliament and member states, and could be amended before they’re implemented.” The outlet explains that the plans will include eight “strategic net-zero” technologies, from solar and wind to battery storage, heat pumps, electrolysers and carbon capture and storage, but not nuclear. Politico reports concerns from some “Brussels grandees” that the EU is preparing to “ditch[] its free-market beliefs to compete with China and the US in a clean energy arms race”. Another Politico article previews today’s proposals on critical minerals: “Conservationists are spooked by Brussels’ plans to ramp up mining of critical raw materials, but advocates say it’s needed to hit the bloc’s green goals.”

Meanwhile, Reuters reports ongoing reaction to commission proposals for electricity market reform, published on Tuesday: “European Commission plans to revamp the bloc’s electricity market brought relief to some, while disappointing countries that campaigned for more sweeping reforms they say are needed to protect against volatile fossil fuel prices. The mixed response from countries sets the stage for tricky discussions between the 27 EU countries that must negotiate and approve the final reforms with [the] European Parliament.” In other EU news, Politico reports that Germany has “tried to defuse a growing conflict with the EU by proposing changes to green transport legislation in a letter sent Wednesday to the European Commission, according to an official who has seen the letter”. It explains: “The idea is to create a loophole for the continued sale of combustion engine cars after 2035 despite EU plans for a ban from that year.” The proposed  loophole would cover combustion engines “running only on e-fuels – synthetic alternatives to fossil fuels made from hydrogen and CO2”, the outlet says. Another Politico article has the headline: “The lobbying effort to save the EU’s fossil boiler industry.”

Germany's greenhouse gases emissions fell 1.9% in 2022 – UBA
Reuters Read Article

German greenhouse gas emissions fell by 1.9% in 2022, according to the nation’s Federal Environment Agency (UBA), Reuters reports. It says the reduction to 40% below 1990 levels was caused by higher renewable energy generation and lower energy demand, according to the agency, which adds that emissions will need to fall by 6% per year to reach the country’s 2030 target. Deutsche Welle reports the figures under the headline: “Germany meets 2022 greenhouse gas emissions target.” However, it notes that the energy and transport sectors “are still failing to make a sufficient contribution to the cuts”. It adds that Germany is aiming for a 65% cut by 2030, from 1990 levels. Bloomberg leads its coverage with the line that German transport emissions rose in 2022 “as a post-pandemic recovery offset higher fuel prices, rail subsidies and record numbers of new electric vehicles”. It notes that Germany has recently “blocked the European Union’s plan to phase out combustion engines by 2035”.

Another Reuters article says Dutch greenhouse gas emissions fell by 9% to 32% below 1990 levels “as the energy crisis drove down the use of natural gas in industry and buildings, the Dutch national statistics office said on Wednesday”.

China to cut steel output for third year to hit green goals
Bloomberg Read Article

China will “again cut annual crude steel production” in 2023, writes Bloomberg, citing a person “familiar with the decision”, which marks the “third year in a row that the government has mandated reduced output in order to rein in carbon emissions from the heavily polluting sector”. China is the world’s “biggest producer and consumer of the alloy”, which is the “backbone” of its industrial economy, the article says, adding that since output “hit a record of 1.053bn tonnes in 2020 it has declined each year to remain just above 1bn tonnes”. It adds that the sector “accounts for about 15% of national emissions, second only to electricity generation”. Reuters reports that China’s coal output “rose by 5.8% in the first two months of 2023 from the same period a year earlier”, according to data from the National Bureau of Statistics, as “new mining capacity came online and Beijing encouraged miners to boost production to improve energy security”.

Meanwhile, a website owned by China Electricity Council has published an “exclusive”, focusing on a new round of power-sector reforms. It says it “overlaps with the process of achieving ‘dual carbon’ targets, which is the country’s unique situation…Therefore, China’s pressure is far greater than that of other countries. In order to encourage the development of renewable energy, China has formulated the most favourable policies for renewable energy under the planning system.” China Daily notes that Meng Zhenping, a member of the 14th National Committee of the Chinese People’s Political Consultative Conference and chairman of China Southern Power Grid, says: “To ensure a more reliable, efficient and sustainable energy supply at a time when renewable sources become more prevalent in China’s energy mix, China should promote the digital overhaul of electricity grids.”

Elsewhere, China Daily reports that Maerdang hydropower station, the “highest-altitude facility of its kind” on the “upper” reaches of the Yellow River, is currently “under construction and is expected to begin operations in March 2024”, according to its operator China Energy Investment Corp, also known as China Energy. The state-run newspaper adds, citing its operator, that the station – which is located at 5,000 metres above sea level along the Yellow River in Qinghai province and has a total installed capacity of 2.2GW (gigawatts) – is expected to ‘generate an average of more than 7.3TWh (terawatts-hours) of electricity per year once becoming fully operational, cutting 2.56m metric tons of standard coal equivalent consumption and 8.16m tons of carbon dioxide emissions”. The project is also the company’s “first integrated clean-energy facility to include hydropower, solar power and energy storage”, the article stresses. Finally, Shanghai Daily, an online newspaper, has an article titled: “China’s tourism industry seeks sustainable transition.” It says Chinese travellers have been “engaged in issues of environmental impact and are starting to seek out sustainable alternatives. However, many are still not used to the idea of paying more for sustainable travel”.

UK: Coal plant ‘will close as planned’ despite government’s winter standby request
Press Association Read Article

Energy firm EDF, the operator of the West Burton A coal-fired power station in Nottinghamshire, has said the plant will close as planned at the end of the month, the Press Association reports, despite a government request for the National Grid Electricity System Operator to negotiate another life extension for next winter. The newswire notes there is another remaining coal unit at the Drax plant in Yorkshire. However, Reuters reports that this too will close as planned at the end of the month, according to the plant owner Drax. The outlet notes that the Ratcliffe coal plant, also in Nottinghamshire, is already due to remain open next winter as it holds “capacity market” contracts. The Times reports under the headline: “Last-ditch bid to keep open two coal-fired power plants.” It adds: “The two plants, together with one unit of Uniper’s Ratcliffe coal plant in Nottinghamshire, had been due to close last September, but National Grid struck contracts costing consumers an estimated £368m to keep them open for the winter of 2022-23 amid fears of blackouts. In fact, they have barely been needed.” The paper quotes EDF saying it would be “very challenging” to keep West Burton A open and Drax saying it “would not be able to operate” its coal units “compliantly” next winter. Elsewhere, Reuters reports that the new Keadby 2 gas-fired power plant has started commercial operations in North Lincolnshire. It says the 893-megawatt plant is the most efficient of its type in Europe, according to its owner SSE. The newswire adds: “SSE is also working to decarbonise the plant even further, exploring the potential of blending hydrogen. SSE Thermal and Equinor are also developing Keadby 3, which will have a carbon capture and storage plant aimed at keeping about 95% of its emissions from entering the atmosphere.”

Arctic ice has seen an ‘irreversible’ thinning since 2007, study says
The Washington Post Read Article

Arctic sea ice has never recovered from a dramatic decline in 2007, according to new research covered by the Washington Post. The paper says: “New research suggests the loss was a fundamental change unlikely to be reversed this century, if ever – perhaps proof of the sort of climate tipping point that scientists have warned the planet could pass as it warms.” It adds: “In the years since, the data shows, the Arctic has entered what the researchers called a ‘new regime’ – one that brings with it a trend toward ice cover that is much thinner and younger than it had been before 2007, the researchers say. They link the change to rising ocean temperatures in the rapidly warming Arctic, driven by human emissions of greenhouse gases.” The Associated Press also has the story.

US: ConocoPhillips' Alaska Willow project approvals hit with second lawsuit
Reuters Read Article

A coalition of environmental groups has filed a second lawsuit against the Biden administration’s approval of the Willow oilfield in Alaska, Reuters reports. It says the groups argued the “enormous” emissions associated with the development would “undermine federal climate goals”. The newswire adds: “The 30-year project would produce up to 180,000 barrels of oil per day at its peak, according to the company. The federal government estimates that it would release over 260m tonnes of greenhouse gas emissions.” Axios covers the first lawsuit against the decision. The Hill covers both legal challenges. Le Monde also covers the Willow approval. Politico says Alaska Republican senator Lisa Murkowski “won big time with Biden’s oil project. She knows it, too.” 

In other US news, Politico says Senate majority leader Chuck Schumer “dismissed House Republicans’ energy package, calling it ‘as bad and partisan as it gets’ and a ‘nonstarter’ as the basis for negotiations to ease permitting for clean energy and fossil fuel projects”. Separately, Reuters reports: “Two companies developing technology to suck carbon out of the air, Switzerland’s Climeworks and California’s Heirloom, have teamed with non-profit firm Battelle to bid for a $500m US grant to commercialise the climate-friendly technology.” Meanwhile, Axios reports: “The Department of Housing and Urban Development is overhauling its disaster recovery efforts to better serve communities that face the direct impacts of climate change, officials will announce Wednesday.”

Elsewhere, the Hill reports a legislative proposal from two senators “that would make higher-ethanol fuel blends available year-round, a top priority among Midwestern lawmakers in particular”. It explains: “The sale of so-called E15, which is 15 percent rather than 10 percent ethanol, is restricted during the summer. Last year, as already-climbing gas prices spiralled following Russia’s invasion of Ukraine, President Biden suspended the restrictions. The Environmental Protection Agency has since announced a proposed rule that would authorise its sale year-round, but it would not take effect until 2024.” Finally, Reuters reports that the state of Louisiana wants to “take on oversight of carbon capture projects, according to a letter to the state, which wants to speed up approvals”. It says the EPA will review the request by May.

Malaysia palm oil, rubber farmers file EU petition opposing deforestation law
Reuters Read Article

Palm oil and rubber smallholder associations from Malaysia have filed a petition with the EU to protest against a new law designed to prevent imports of commodities linked to deforestation, Reuters reports. It quotes the groups saying rules on traceability will “prevent small farmers from accessing the European market”. It adds: “Indonesia and Malaysia, the world’s largest palm oil exporters, have accused the EU of blocking market access for their palm oil.” Meanwhile, the Independent reports: “Britain is preparing to sign off on a post-Brexit trade deal that campaigners say will encourage further destruction of nature, threaten the habitat of orangutans in Malaysia and make a mockery of the government’s claims of being committed to tackling deforestation abroad…Ministers will reportedly sacrifice import tariffs on palm oil from Malaysia, a product blamed for widespread deforestation, as a price for joining the 21-member regional trade agreement [the Comprehensive and Progressive Trans-Pacific Partnership], following two years of negotiations.”

SVB collapse unlikely to hit funding for climate tech hard – Carney
Reuters Read Article

The collapse of Silicon Valley Bank (SVB) is “unlikely to have a ‘material’ impact on the availability of capital for climate-related technologies, Mark Carney, the United Nations special envoy on climate action and finance, said on Wednesday”, Reuters reports. Elsewhere, Semafor covers the collapse under the headline: “How SVB’s collapse hurts the energy transition.” The piece notes: “It was the sixth-largest financier of US renewable energy projects in 2022, at $1.2bn, and planned to offer $5bn in financing by 2027 to all kinds of climate-related enterprises.” The Financial Times “moral money” newsletter “look[s] at the question of whether the sustainability movement was to blame for SVB’s collapse”. It says: “Tariq Fancy, the former chief investment officer of sustainable investing at BlackRock, told Moral Money that he sees Republicans’ claims linking SVB’s failure to sustainability simply as feeding into the larger politicisation of ESG.” Quartz asks: “Silicon Valley Bank helped finance China’s innovation economy. What happens next?”

Volkswagen to turbocharge global EV push with €120bn investment
BusinessGreen Read Article

German car giant Volkswagen has set out plans to invest two-thirds of its overall spending, some €120bn, in electrification and digitalisation, BusinessGreen reports, in a move it says will “ turbocharge [VW’s] worldwide push towards electric vehicles”. The outlet adds that the company’s sales of EVs “jumped by almost a quarter last year”. Reuters reports: “Volkswagen laid out on Wednesday the details of a planned all-electric car costing under €25,000 ($26,790), part of the German carmaker’s push to derive 80% of VW passenger brand sales in Europe from all-electric vehicles by 2030.” It adds: “The car with a 450-km range (280 miles), to launch in Europe by 2025, will be the first on Volkswagen’s modular electric platform to feature a front-wheel drive, with design elements that hark back to the first Golf, VW said in a statement. The battery will charge from 10% to 80% in around 20 minutes, with the car’s top speed hitting 160 km per hour.” Forbes reports under the headline: “VW and GM are passing Tesla in the race to sell affordable EVs.”

Comment.

Is 1.5C still realistic? The crumbling consensus over key climate target
Attracta Mooney, Financial Times Read Article

A Financial Times “big read” looks at the 1.5C stretch target of the Paris Agreement, beginning with the comments of COP28 president-elect Sultan al-Jaber, who is also chief executive of Abu Dhabi’s state oil company. It quotes him saying the 1.5C goal “is just non-negotiable”. But the piece goes on to say: “Some climate scientists think 1.5C is no longer feasible while others believe we can get back on track, but only with far more drastic action. There are those in the business community, particularly in fossil fuel production, who want to scrap it because retaining it would mean limits on the expansion of their industry.” It adds: “But many scientists and campaigners worry that admitting defeat in the battle to keep warming to 1.5C is a way of justifying slower action from countries and companies.” The piece quotes Detlef van Vuuren, a senior researcher at PBL Netherlands Environmental Assessment Agency, saying: “It doesn’t matter too much if 1.5C is realistic enough. The lowest we can get to is the most attractive…It should not become 2C. What it should mean is if we can’t reach 1.5C, we don’t pass 1.6C.”

Waiting for Green Day
BusinessGreen Read Article

A comment by BusinessGreen editor James Murray lists all the climate and energy matters not covered by yesterday’s UK budget including renewables, planning reform, electric vehicles, tree-planting, home insulation, heat pumps or farming subsidies. He notes: “For news on all this and more, green businesses and investors will have to wait for yet another few weeks.” Murray concludes: “Hunt may have done a good job of projecting a reliably bland sense of stability, but the sidelining of environmental and energy issues in today’s budget suggests there is still a failure to grasp the urgency of the current moment.” An editorial in the Guardian says: “Before the next election, the defence budget will get almost as much as all the cash Hunt proposes to spend in total on his childcare offer, climate investment in domestic sources of energy, and subsidies to keep down household gas and electricity bills.” A comment for the Daily Express by the Energy and Climate Intelligence Unit’s Jess Ralston says: “So, is the UK an attractive place for net-zero investment, given incentives elsewhere? Perhaps more commitment is being kept for a rumoured ‘Green Day’ soon. Investors may well have to wait.” An editorial in the Sun, meanwhile, says: “[A]t long last a government is getting serious about nuclear power, without which net-zero Britain is a mere fantasy. When, though, will new power stations actually be announced?” The paper also celebrates another fuel duty freeze in the budget: “Treasury officials cursed us as Jeremy Hunt credited The Sun in his budget for convincing him to heed our advice over theirs regarding the plight of motorists.” In the Daily Mail, columnist Alex Brummer writes: “The chancellor deserves praise for recognising the promise of Rolls-Royce small modular reactors after nearly a decade of scepticism and delays. As part of Great British Nuclear, the government is pledging to fund an exciting new technology. About time!” In other comment from the UK papers, climate-sceptic columnist Ross Clark has another article in the Daily Telegraph titled: “Just admit that Britain isn’t ready for heat pumps.” He writes: “Properly installed in a newly-built, well-insulated property, they can work a treat.” However, he claims “heat pumps are simply not viable in older homes”. (A major government-back research programme concluded last year: “All housing types are suitable for heat pumps.” It said at the time: “From Victorian mid-terraces to pre-WWII semis and a 1960s block of flats – the project has proven that heat pumps can be successfully installed in homes from every style and era.”) Elsewhere, an article in the Conversation looks at “three sources of behavioural bias that may affect how people view air-source heat pumps”. It concludes: “Ambiguity, concerns over personal financial losses, and the lack of accessible data regarding successful installations will likely slow air source heat pump uptake in the UK. Financial incentives no doubt help, but the government also needs to address how people think about them if it is serious about greening household energy systems.”

Science.

Regime shift in Arctic Ocean sea ice thickness
Nature Read Article

Arctic sea ice underwent a “regime shift” over 2005-07 to become thinner and more uniform, according to new research. The authors use measurements of sea-ice thickness in the Fram Strait taken since 1990. They find that sea ice in the Arctic basin underwent a “two-step reduction in residence time”, which was “initiated first in 2005 and followed by 2007”. After the shift, the fraction of thick and deformed ice dropped by half and has not recovered to date, the paper says.

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