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TODAY'S CLIMATE AND ENERGY HEADLINES

Briefing date 09.05.2023
COP28 team marshals oil and gas industry alliance ahead of climate summit

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News.

COP28 team marshals oil and gas industry alliance ahead of climate summit
Financial Times Read Article

A new alliance of the oil-and-gas sector formed by the COP28 team does not address the “most damaging emissions”, according to a letter seen by the Financial Times. The paper says the alliance – provisionally named the Global Decarbonization Alliance – is being “billed as a flagship COP28 initiative”. It continues: “[The alliance] will set a goal of reaching net-zero emissions by 2050 from direct emissions and emissions derived from the energy the companies purchase, known as scope 1 and 2, an initiating letter seen by the Financial Times says. However, the framework as it is outlined in the letter, does not include a target for so-called scope 3 emissions, or the indirect emissions that make up by far the biggest proportion of the sector’s pollution.” The newspaper adds: “A private workshop is expected to take place next week in the UAE where the alliance and provisional framework will be discussed. COP28 said it would not comment on leaked documents.” However, the newspaper says that the letter “does set out progressive targets for methane in upstream production”, with a proposed goal to end all routine flaring.

Meanwhile, Climate Home News reports that “battle lines are [being] drawn” ahead of COP28 as ministers from around 40 countries gathered in Berlin last week to “kick-start negotiations”. The outlet says: “The head of COP28, the UAE’s Sultan Al Jaber, set the tone of the discussions by backing the phase-out of ‘fossil fuel emissions’. The wording has been interpreted as creating a loophole. The inclusion of ‘emissions’ leaves the door open to the continuing use of fossil fuels if their emissions are kept out of the atmosphere with carbon capture and storage (CCS) technology. During the ensuing talks, several countries underlined the need to ‘phase out fossil fuels as a major source of emissions’, according to an official summary.” And Bloomberg reports that European officials have “started calling for a global target for rolling out renewables” ahead of COP28.

US: ‘No other way to do it’ – Biden about to go big on power plants
Politico Read Article

The US environmental protection agency will reveal this week its “most ambitious effort yet” to reduce emissions from the nation’s power plants, Politico reports. According to the outlet, the proposal “makes key trade-offs in its efforts to slash the power industry’s greenhouse gas output without running afoul of a sceptical Supreme Court”. It adds: “EPA is expected to rely on advanced technologies rarely if ever employed in the US power industry, such as capturing coal plants’ carbon pollution before it hits the atmosphere or blending hydrogen into the fuel mix at natural gas plants.” It continues: “The proposal will be a capstone of President Joe Biden’s climate efforts before he faces voters next year…If it succeeds, the rule would transform the US economy by accelerating the dwindling of coal as a major power source, just as EPA’s proposals to limit car and truck pollution aim to spur a rapid shift to electric vehicles…But the effort faces dangers. One is from the courts, which rejected both the Obama and Trump administrations’ attempts to enact climate rules for power plants.” Bloomberg says the plan “is already butting up against obstacles”, including delays in the digging wells and building the  infrastructure necessary to capture and store greenhouse gases from coal and natural-gas plants. It adds: “Sceptics, meanwhile, say the technology hasn’t yet been ‘adequately demonstrated’ — a legal threshold for the government’s embrace of it under the Clean Air Act.”

In other US news, Reuters reports that “the Biden administration on Friday launched a $4bn effort to electrify US ports and cut heavy duty truck emissions”. Separately the newswire says the US pipeline regulator has announced new rules aimed at reducing leaks of methane from the domestic pipeline system. This comes as the New York Times reports that there are more than 14,000 old, unplugged oil and gas wells in the Gulf of Mexico. The paper says the wells are “at risk of springing dangerous leaks and spills that may cost more than $30bn to plug”. New Scientist also covers the research. Elsewhere, Reuters reports that “dozens of Democratic lawmakers on Monday called on the Biden administration to consider the climate and environmental justice impacts of the expansion of the liquefied natural gas (LNG) industry”.

Vietnam records highest-ever temperature of 44.1C
The Independent Read Article

Vietnam recorded its highest temperature on record on Sunday in the northern province of Thanh Hoa, the Independent reports. According to the outlet, Vietnam’s previous record temperature of 43.4C, set in 2019, was broken by 0.7C. AFP reports via the Guardian that “authorities told the population to remain indoors during the hottest parts of the day”. BBC News says: “Thailand reported a record-equalling 44.6C in its western Mak province. Meanwhile, Myanmar’s media reported that a town in the east had recorded 43.8C, the highest temperature for a decade.” The Washington Post reports that Luang Prabang in Laos also breached its all time temperature record. It adds: “Approximately 18.3% of Laotians live in poverty, and are far more likely to be harmed by elevated temperatures. It’s likely that significant excess mortality — or premature deaths caused by the intersection of heat stress and preexisting vulnerabilities — is occurring across Southeast Asia.” Separately, the Washington Post calls Asia’s heatwaves a “grim sign of the times”, noting that, “by some measures, Asia just experienced its hottest April on record”.  The Japan Times reports that “the Philippines cut classroom hours after the heat index reached the ‘danger’ zone, reflecting the potentially deadly combination of heat and humidity”. The outlet links the extreme heat to El Niño. Elsewhere, the South China Morning Post reports that “scorching temperatures” are predicted for India’s summer months. It adds: “The climate pattern El Niño heralds hotter, dryer conditions, which could turn a not-so-great rainy season into a bad one for India.”

Meanwhile, outlets including the Guardian, the Independent, the New York Times, the Times and Yale E360 cover a new rapid attribution study, which finds that the extreme heatwave that swept across Spain, Portugal, Morocco and Algeria in late April would have been “almost impossible” without climate change. Carbon Brief also has in-depth coverage of the study.

German climate envoy says coal is not the answer to China’s energy security
South China Morning Post Read Article

China should look for alternatives to new coal power to ensure its energy security, German’s climate envoy Jennifer Morgan tells the South China Morning Post in an interview. The Hong Kong-based paper quotes her saying: “​​We are concerned. We need to think about energy security and climate security together now…We hope China would move more into other ways of ensuring its energy security rather than going for coal.” Meanwhile, Shanghai Securities News quotes the head of China’s National Energy Administration (NEA) Zhuang Jianhua saying that energy security and enhancing energy production and supply are “its important tasks”. The country’s top energy regulator will further increase support for the “safe, efficient, stable and increased” production of “high-quality” coal, the newspaper notes. Another South China Morning Post article asks whether hydrogen could be the “answer to China’s energy security problem”.

Elsewhere, the Global Times says the potential visits to China of US secretary of state Anthony Blinken and climate envoy John Kerry “will have little effect on improving bilateral ties if the US government continues on the wrong path”. An editorial in the Global Times begins: “While the introduction of industrial subsidies in the US and European countries has significantly accelerated the global competition on green sectors, the EU’s need to speed up its energy transition and China’s huge advantages in related industries may still represent great potential for China-EU new-energy cooperation.” However, the state-run tabloid criticises what it calls “green protectionism” from the US and EU. The editorial concludes: “Only through close cooperation between the two sides can they reduce reliance on traditional energy sources and achieve climate change targets.” For state-supporting China Daily, Francesco La Camera, head of the International Renewable Energy Agency, writes: “China’s proven economic resilience is essential for the energy transition, as many countries continue to leverage the country’s manufacturing capabilities to transition to cleaner energy sources.” Writing in the Diplomat, Chris Qihan Zou, analyst at US-based thinktank Rhodium Group, says climate “emerged as a central theme” during recent visits to China of the presidents of France, Brazil and Gabon.

Elsewhere, Xinhua says China’s State Council has “adopted a guideline on accelerating the development of advanced manufacturing clusters” at a meeting on Friday. The state-run newswire adds: “The meeting also made arrangements on speeding up the construction of charging infrastructure to better promote new energy vehicles in rural areas.” Financial outlet Caixin, citing the National Energy Administration, says China installed 34 gigawatts of solar capacity in the first quarter of the year, an increase of 155%. Meanwhile, state-supporting People’s Daily reports on the low-carbon transition plans of China’s oil majors Sinopec, CNOOC and PetroChina, including hydrogen and carbon capture and storage. Separately, the South China Morning Post reports on “how China is clamping down on exaggerated green claims in sectors from manufacturing to finance”. Finally, Xhinhua reports: “Chinese scientists have revealed that the globe is undergoing a transition toward more frequent flash drought events, and that the transition is closely related to climate change caused by human activities.”

Canadian province of Alberta declares wildfire emergency
BBC News Read Article

The Canadian province of Alberta has declared a “state of emergency” with wildfires driving nearly 25,000 people from their homes, BBC News reports. According to the outlet, more than 100 fires have been reported – many of which are still “burning out of control, fanned by strong winds”. Premier Danielle Smith, the leader of Alberta’s government, has called the fires an “unprecedented crisis”, according to the New York Times. Separately, the New York Times reports that nearly a million acres of land have burned since the fires started more than a week ago. Reuters explains that Alberta is Canada’s main oil-producing province and says the fires have shut down about 2% of the country’s production. The Independent quotes Christie Tucker, from Alberta’s wildfire agency, who “noted that there has been significantly more wildfire activity ‘than we’ve certainly seen anytime in the recent past’”. The paper adds that smoke from the fires can be seen from space. And Le Monde reports that Smith “spoke with prime minister Justin Trudeau to formally ask for assistance”.

Shell looks to sell off its stake in controversial Cambo oilfield
The Guardian Read Article

Oil-and-gas company Shell is looking for a buyer for its 30% holding in the “controversial” Cambo oilfield, the Guardian reports. The paper says the company “pull[ed] the plug on its investment” more than a year ago, blaming “a weak economic case and the risk of delay”. It continues: “The plans to develop Cambo, which is the second-largest undeveloped oil and gas discovery in the North Sea, ignited fierce protest from climate campaigners and the threat of a legal challenge if ministers allowed new drilling to go ahead.” BBC News adds that the remaining 70% of the field is owned by Ithaca energy. It adds: “If a buyer wants to purchase more than Shell’s 30% stake then Ithaca will sell up to 19.99% of its holding in the project, it said.”

UK businesses face delays of up to 15 years for solar installations
The Guardian Read Article

Businesses in the UK are facing waits of up to 15 years for solar installations, the Guardian reports. According to the newspaper, an inquiry by the environmental audit committee finds that “the government’s ambition to install 70GW of solar by 2035 may not happen if these delays continue”. It continues: “MPs said there were three key areas where the current approach on grid connection was delaying progress: a lack of physical infrastructure such as cables and transformers; poor availability of data on solar photovoltaic generation, particularly for small-scale installations; and a ‘queueing system’ of applications where developers are applying for grid connections without the project having planning permission. Though the committee said solar energy did not need subsidies due to how cheap it was to generate, it did find that the costs of installation could be prohibitive…The chair of the committee, Philip Dunne, said the delays could stop the UK from reaching net-zero emissions by 2050.” The Financial Times’s Lex column says “the long wait for grid connections must end”. It adds: “To get projects up and running faster, one idea is to cherry pick the ones that are likeliest to get built.” Meanwhile, the Daily Telegraph lists “four reasons why solar panels won’t work on your home”, including “solar panels might not fit your roof” and “your energy bills might not be much cheaper”.

In other UK news, Reuters reports that UK prime minister Rishi Sunak has pledged £80m to the Amazon Fund during a meeting with Brazilian president Luiz Inacio Lula da Silva. The promise “follows a similar commitment by US president Joe Biden earlier this year, joining previous donors Norway and Germany,” the newswire notes. Separately, the Daily Mail says: “Brazilian president Luiz Inacio Lula da Silva revealed on Saturday that King Charles III, a fervent environmentalist, had personally asked him to protect the Amazon rainforest.”

Elsewhere, the Guardian reports that “offices and retail spaces across the Canary Wharf business district [in London] will soon be powered by clean energy generated by a windfarm in Scotland.” Separately, the newspaper reports on a new charity being launched this week that aims to triple the UK’s temperate rainforest. The Times says that “Bill Gates is poised to enter the multibillion-pound race to build nuclear power plants in the UK, challenging the likes of Rolls-Royce in the scramble to shore up Britain’s energy security”. Separately, the paper covers the results of a new poll, which finds that “a large majority of people in Scotland oppose the SNP government’s stand against new oil and gas exploration in the North Sea and believe the industry must continue to meet the country’s energy demands”. An “exclusive” by the i newspaper shows “how coastal erosion is eating away at England’s vanishing coastline”. And the Daily Telegraph reports that “thousands of free electric car chargers have been pulled from Britain’s roads over the past year as soaring energy costs makes them unaffordable to offer”.

Germany's Scholz says more renewables key to lower industry costs
Reuters Read Article

German industrial companies say high electricity prices are putting the sector “at a structural disadvantage” next to countries such as the US and China, reports Reuters. The newswire says that the German chancellor Olaf Scholz sees the solution as “ramping up renewable power production” rather than providing electricity subsidies for energy-intensive companies. This issue has emerged because German economy minister Robert Habeck has presented the idea of subsidising industrial electricity prices so they are capped at 6 cents per kilowatt hour instead of the 30 cents companies are currently paying, reports Der Spiegel. The outlet adds that the measure is planned until 2030 and would cost an estimated €‎25-30bn which would be financed from the so-called economic stabilisation fund. However, finance minister Christian Lindner, who represents the Free Democrats (FDP), is “very critical” of the plans because relying on direct state aid is “economically unwise” and “contradicts the principles of the social market economy”, he writes in a comment piece for Handelsblatt. Additionally, despite promises of lower electricity costs for companies as a part of his election campaign, Scholz also opposes Habeck’s proposal, reports Table.Media

Separately, Habeck says that Germany “need[s] partners” to import 70% of “green” hydrogen due to Germany’s insufficient capacity, reports Reuters. Germany produced 44 terawatt hours (TWh) of hydrogen last year, “not even 1% of which was produced in a climate-neutral manner with green electricity”, notes Der Spiegel, adding that most electricity came from “natural” gas. The newspaper also details that there are “just” 417 kilometres of hydrogen pipelines in operation throughout Germany. The federal government aims to build electrolysers with a capacity of 10 gigawatts (GW) by 2030, while corporations such as BP and RWE are planning “numerous large-scale plants”, notes the outlet. However, the outlet adds that the final investment decision is still pending for most projects. According to Frankfurter Allgemeine Zeitung (FAZ), Spain will become one of the most important suppliers of green hydrogen to Germany in the coming years, potentially alongside Australia, Chile, Morocco, the United Arab Emirates and Ukraine. 

Elsewhere in German media, Süddeutsche Zeitung reports that during Scholz’s recent three-day trip to Africa, travelled to Kenya – the “energy transition wonderland” – where energy minister Davies Chirchir spoke about how geothermal energy covers half of Kenya’s electricity needs. Scholz noted that Germany could learn from Kenya by “using its natural resources”, predicting that Germany also “will certainly start again to use geothermal energy”. 

Finally, the Associated Press reports that amid Germany’s new record for photovoltaic installations during the first quarter of 2023, Habeck has announced a series of measures to “ease bureaucratic hurdles for solar power” because the government wants to have 215GW of solar installed by 2030, more than tripling existing capacity. The Independent also covers the story.

European gas price sinks to lowest level since energy crisis began
Financial Times Read Article

European gas prices fell to a 21-month low on Friday, the Financial Times reports. The paper adds: “Oil prices have also fallen, with Brent crude down to near $75 a barrel having traded above $100 a barrel for much of last year, dropping back to roughly the level it traded at before the invasion of Ukraine.”

Comment.

It is time Ofgem rose to the challenge of upholding net zero
Chris Skidmore, Financial Times Read Article

Chris Skidmore, the chair of the UK government’s net-zero review and former UK energy minister, writes in the Financial Times the energy regulator Ofgem is “not fit for purpose”. He says: “Despite government departments being aligned with the 2008 Climate Change Act, the regulator’s remit has not substantially changed since its establishment in 2000…I believe Ofgem needs reform to help electrify the economy and bring down bills.” He continues: “At present, grid connections are being built on a just-in-time or retroactive basis, rather than proactively planned in areas where we know renewable energy will be built…The madness doesn’t stop there. The current system overseen by Ofgem favours electricity coming from Europe, rather than wind farms built in the UK’s windiest areas.” He concludes: “Ofgem can and must help sort out this mess if it’s given the powers.”

In the Independent, Ryan Coogan, a writer, academic and poet, writes in light of the coronation that “protest is a fundamental part of being British – because democracy is a fundamental part of living here”. He adds: “By cracking down hard on the right to protest – not only with today’s crackdown but more generally, with the introduction of legislation like the Public Order Bill – you create the impression that you do not have confidence in your own ability and right to rule.”

In the Guardian, Thomas Ferguson, ​​director of research at the Institute for New Economic Thinking, and Servaas Storm, senior lecturer at the Delft University of Technology, warn that high interest rates following the Russian invasion of Ukraine “de-incentivise investments in renewables, lock our economies more deeply into fossil-fuel dependence, slow down decarbonisation and put us even more strongly on the road to hothouse Earth.” They propose: “It is time to downgrade their [central bankers’] role to that of servants of fiscal and industrial policies. These need to be geared toward promoting rapid decarbonization and the renewable energy transition. Only by doing this will we be able to avoid climate change-induced disruptions and achieve greater price stability.”

In the Guardian, John Naughton, professor of the public understanding of technology at the Open University, warns that “carbon emissions are not the only way [electric vehicles] impose a burden on the planet and its inhabitants”. Mining precious metals for the battery, including nickel, cobalt and lithium “comes at a cost that we proud owners don’t pay,” Naughton concludes. In the Daily Telegraph, Melanie McDonagh warns: “Britain isn’t installing enough chargers to meet government targets [to phase out petrol cars by 2030].” Also for the Daily Telegraph, climate-sceptic commentator Ross Clark writes that, if EVs are to be “forced” on the population, “it could well mean a great number of ordinary motorists being priced off the road”.

As is now its daily habit, the same newspaper reserves yet more space to promote climate sceptics. The Daily Telegraph’s assistant comment editor Sherelle Jacobs warns Rishi Sunak that any hope for the Tories at the next election require “an ambitious but sensible alternative energy transition plan to net-zero”. Elsewhere, Aria Babu tells Daily Telegraph readers that “green fanatics must not stop humanity from having children”, while Daily Telegraph technology columnist Andrew Orlowski writes that “hairshirt green zealots” are waging a “war on meat” at a school in North London.

New York banned gas from new buildings. Why not California?
Editorial, Los Angeles Times Read Article

After New York “made climate history last week” becoming “the first state in the nation to pass a law banning natural gas in most new buildings”, the Los Angeles Times editorial board questions why California – “the state that’s declared itself a climate leader” – was not the first? In the New York Times, Benjamin Keys, economist and a professor of real estate and finance, writes: “Climate risk is driving insurer decisions like never before.” For the New York Times, Farhad Manjoo cites a study published in 2020 which found that “the percentile of the most frequent fliers – at most 1% of the world population – likely accounts for more than half of the total emissions from passenger air travel.”

Meanwhile, Bloomberg columnist Javier Blas writes: “Gas stockpiles are in good shape for this time of year. The question is how long such luck can last.” And, after “extended blackouts”, South Africa’s government “is giving people the freedom to break fossil-fuels’ hold over the grid”, says Bloomberg columnist David Fickling.

Science.

Modelling climate analogue regions for a central European city
Climatic Change Read Article

The German city of Aachen will have a climate more like that of the French city of Dijon by the end of the century under moderate global warming – and could face the same conditions as the Italian city of Florence if future emissions are very high. That’s according to a new study that uses an algorithm and climate data to find “climate analogues” for 389 European cities under different levels of global warming. Aachen has a climate comparable to London, suggesting the UK capital could experience a similar shift in climate conditions, the authors add.

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