LATEST ARTICLES

Indonesia’s Bold Push to Net Zero: Shutting Down All Coal Plants in 15 Years

Jennifer L
-
0
Indonesia’s Bold Push to Net Zero: Shutting Down All Coal Plants in 15 Years

Indonesia has unveiled an ambitious plan to transition away from fossil fuels and achieve net-zero emissions by 2050, a decade earlier than its previous target. Speaking at the G20 Summit in Brazil, President Prabowo Subianto announced a timeline to retire all coal-fired and fossil-fueled power plants within 15 years. 

From Coal to Clean: Indonesia’s 15-Year Plan for Energy Revolution

The Southeast Asian nation aims to replace its fossil fuel capacity with over 75 GW of renewable energy, utilizing its rich geothermal resources and expanding its solar and wind infrastructure. This commitment marks a significant shift for a country heavily reliant on coal and natural gas. These energy sources account for almost 80% of Indonesia’s electricity production. 

Indonesia Power Mix
Source: BloombergNEF

Indonesia’s coal-fired power emissions surpassed 185 million metric tons of CO₂ equivalent (MtCO₂e) in 2023. This makes the country a significant contributor to global power sector emissions. With coal dominating its electricity mix, Indonesia remains heavily reliant on this fossil fuel for energy production. 

As of the end of 2023, Indonesia’s combined wind and solar capacity was less than 1 GW, per BloombergNEF data above. This underscores the vast scale of transformation required to meet its targets. 

Despite these challenges, the country is determined to pivot towards renewable energy and be a regional leader in the green energy transition.

Building on Global Partnerships

Indonesia’s ambitious agenda builds on the $20 billion Just Energy Transition Partnership (JETP) deal signed in 2022. This initiative, co-led by nations like the U.S., Japan, and European countries, aims to fund early coal plant retirements and accelerate renewable energy adoption. 

However, progress has been slow. Much of the pledged funding remains undelivered, with officials expressing the urgency of receiving the support to achieve its goals.

President Prabowo’s announcement underscores Indonesia’s intent to lead by example, revealing a more aggressive approach toward reducing carbon emissions. His predecessor initiated the JETP deal, but Prabowo’s leadership seeks to overcome the challenges that have stalled its progress.

Earlier this month, Indonesia inked a $10 billion agreement with China at the Indonesia-China Business Forum. The event focuses on economic growth in clean tech, biotechnology, water conservation, and mining. 

Indonesia’s nickel industry remained a focal point, with Chinese firms like GEM Co. partnering with PT Vale on a $1.42 billion HPAL plant. Investments by Tsingshan and Huayou Cobalt further affirm Indonesia’s vital role in supplying nickel for EVs, batteries, and green technologies.

Nickel and Nature: Leveraging Resources for Climate Goals

Indonesia plans to tap into its vast natural resources to drive its energy transition and reach net zero. The country is rich in geothermal energy, making it an ideal candidate for large-scale renewable energy projects. 

Geothermal reserves distribution in Indonesia
Source: Research Gate

Alongside geothermal, the government plans to expand solar and wind capacity to bridge the gap left by retiring fossil fuel plants.

Additionally, biodiesel production will play a significant role in the transition. Indonesia has been using palm oil to produce biofuels, and President Prabowo emphasized its importance in reducing dependence on coal and gas. 

Beyond energy generation, Indonesia’s expansive rainforests offer a unique opportunity to generate carbon credits. The country aims to produce over 550 million tons of carbon credits, helping offset emissions and contributing to the global fight against climate change.

In September, President Prabowo unveiled plans for a $65 billion green economy fund by 2028. This innovative fund will leverage carbon credit sales from large-scale environmental projects, including forest preservation and reforestation. Managed by a “special mission vehicle,” the initiative will centralize sustainable activities nationwide. 

Indonesia’s nickel industry is also pivotal to its economic strategy. In 2023, the country produced over half of the world’s mined nickel, solidifying its position as a leading global supplier of metallic commodities. Despite falling nickel prices, Indonesia’s cost-efficient production remains robust.

  • S&P Global Commodity Insights forecasts Indonesia’s mined nickel output to hit 2.1 million metric tons in 2024. This exceeds 50% of global production and doubles the country’s 2020 levels, reinforcing Indonesia’s dominance in the nickel market.

Bold Targets, Big Challenges: Will Indonesia’s Green Vision Succeed?

Hashim Djojohadikusumo, Indonesia’s climate envoy to COP29, outlined the nation’s target to install 100 GW of new energy capacity over the next 15 years. Of this, 75%—or 75 GW—will come from renewable energy sources. These projects will add to the country’s existing installed capacity of over 90 GW, of which coal currently dominates.

The plan involves a massive budget of $235 billion, technology, and scientific expertise.

However, the scale of these ambitions raises questions about feasibility. With renewables currently accounting for less than 15% of Indonesia’s energy mix, the road to 75 GW of renewable capacity will require significant investments in infrastructure, technology, and workforce training.

Moreover, the nation’s reliance on coal exports as a major revenue source adds economic complexity to the transition. Retiring coal plants will not only require financial support from international partners but also a clear strategy to manage the social and economic impacts on coal-dependent communities. Amid all these challenges, President Prabowo’s leadership signals a new chapter in Indonesia’s energy policy. 

With global eyes on its progress, Indonesia’s journey to net zero will be a litmus test for the feasibility of large-scale energy transitions in emerging markets. If successful, it will show that even coal-reliant economies can shift toward sustainable energy with the right policies and support.

Nvidia’s $35B Q3 Revenue: Record AI Growth Meets Rising Environmental Challenges

Jennifer L
-
0
Nvidia’s $35B Q3 Revenue: Record AI Growth Meets Rising Environmental Challenges

Nvidia posted impressive Q3 results, exceeding expectations with $35 billion in revenue—a 94% year-over-year surge. Driven by booming artificial intelligence (AI) demand, the company’s growth underscores its leadership in tech innovation. However, Nvidia’s meteoric rise also highlights its environmental challenges, as energy-intensive AI operations draw attention to sustainability and carbon emissions.

Nvidia’s Q3 Earnings Surge Amid Booming AI Demand

Nvidia, the world’s largest publicly traded company by market cap, reported exceptional third-quarter results, driven by robust demand for its AI-focused chips. For the quarter ending October 27, revenue soared to $35 billion, a 94% increase from $18 billion last year. It also beats analyst’s estimates of $33.2 billion as shown below.

Nvidia Q3 2024 revenue

  • The chipmaker’s net income more than doubled to $19 billion, compared to $9 billion in Q3 2023. Adjusted earnings per share stood at 81 cents, surpassing Wall Street’s expectations of 75 cents per share.

Nvidia’s data center revenue reached $30.8 billion, marking a 112% year-over-year growth. This was fueled by the Hopper platform’s popularity for AI applications, including large language models and generative AI tools. With gaming revenue also rising 15% to $3.3 billion, Nvidia continues to solidify its dominance across multiple sectors, driving the future of AI innovation.

CEO Jensen Huang highlighted the company’s pivotal role in AI adoption, stating: 

“The age of AI is in full steam, propelling a global shift to Nvidia computing.” 

Looking ahead, Nvidia anticipates Q4 revenue of $37.5 billion, slightly above analysts’ estimates of $37.09 billion. The company also provided updates on its next-gen Blackwell AI chips, set for production shipments in 2025. However, supply constraints are expected to persist through 2026, according to Chief Financial Officer Colette Kress.

Nvidia’s stock, which has surged 195% year-to-date, dipped 1% in after-hours trading despite its strong quarterly performance. Analysts remain optimistic though, emphasizing Nvidia’s leadership in AI. 

Nvidia stock Q3 financial results

Wedbush analyst Dan Ives described the results as a testament to the ongoing “AI Revolution,” projecting the company’s market cap to hit $4 trillion by 2025.

Emerging as a global tech leader, Nvidia captivated investors with its market growth and revolutionary advancements in AI and computing. 

However, as the chipmaker reaches record-breaking valuations, the spotlight on its environmental practices and sustainability commitments has intensified. The company faces increasing scrutiny over its efforts to address climate change and reduce its substantial energy footprint.

Behind the Chips: The Carbon Cost of AI

AI and chip manufacturing are energy-intensive processes that contribute to greenhouse gas emissions throughout the supply chain. From mining rare metals to the high-temperature ovens required during chip fabrication, the production of advanced semiconductors is resource-heavy.

According to researchers, information and communications technologies—including data centers—are responsible for 1.8% to 2.8% of global GHG emissions. This figure is projected to rise significantly as AI adoption accelerates. 

The International Energy Agency (IEA) estimates that the sector’s electricity consumption could double by 2026, potentially consuming 4% of global electricity—an amount comparable to Japan’s entire energy usage.

Nvidia’s Sustainability Initiatives

In response to these challenges, Nvidia has outlined a series of sustainability goals in its 2024 Corporate Responsibility Report. The company is committed to achieving 100% renewable electricity for all its offices and data centers by fiscal year 2025. This ambitious target reflects Nvidia’s dedication to reducing Scope 1 and Scope 2 emissions, which cover its direct operational carbon footprint.

Total FY2024 GHG emissions is 3,692,423 MTCO2e, with the following breakdown per source:

Nvidia GHG emissions 2024

For Scope 3 emissions, which comprise most of the company’s GHG footprint and include those generated by its supply chain, Nvidia is working with suppliers to adopt science-based emission reduction targets. By 2026, Nvidia aims to engage suppliers responsible for at least 67% of its Scope 3 Category 1 emissions, encouraging them to align with the company’s climate standards.

While Nvidia has made significant strides, its lack of a comprehensive net zero strategy has drawn criticism. The company’s report highlights its greenhouse gas emissions and energy use—73,017 metric tons of CO2 equivalent and 496,901 megawatt hours, respectively, in 2023—but provides limited detail on how it plans to reach net zero.

Innovations Powering Nvidia’s Green Goals

Nvidia’s innovations, such as the Blackwell GPUs and its Earth-2 platform, are pivotal in reducing the environmental impact of AI and computing. The Blackwell GPUs consume up to 20 times less energy than traditional CPUs for complex workloads, while the Earth-2 platform offers advanced climate modeling capabilities, using 3,000 times less energy than conventional systems.

Liquid cooling is another area where Nvidia is making strides. Direct-to-chip liquid cooling technology significantly enhances data center efficiency, reducing water consumption and energy demand. This system aligns with Nvidia’s broader strategy to improve the sustainability of its operations and products.

Additionally, Nvidia’s Omniverse platform enables businesses to create digital twins—virtual replicas of physical operations. This innovation helps industries optimize energy use, reduce waste, and cut carbon emissions. For example, Wistron, a manufacturing company, used Nvidia’s Omniverse to save 120,000 kilowatt-hours of electricity annually and reduce CO2 emissions by 60,000 kilograms.

Green AI: A Sustainable Path Forward

The rise of AI has brought immense opportunities but also increased energy demands. Deloitte’s report on AI’s environmental footprint predicts that global data center power demand could reach 1,000 terawatt-hours (TWh) by 2030 and potentially 2,000 TWh by 2050. 

Nevertheless, AI can significantly contribute to climate-neutral economies, as outlined in Deloitte’s study on Green AI. This concept focuses on minimizing AI’s environmental footprint by adopting renewable energy and optimizing hardware design.

Industry leaders have spearheaded Green AI efforts, particularly in accelerated computing. This approach relies on specialized hardware like GPUs, enabling faster, energy-efficient processing compared to CPUs, which handle tasks sequentially.

Nvidia accelerated computingSource: “Powering artificial intelligence” report by Deloitte Global

Notably, Nvidia is among the tech companies exploring nuclear energy as a sustainable solution to meet the growing energy needs of AI and data centers. Nuclear power provides a reliable, compact, and low-carbon energy source that can sustain the rapid expansion of AI technologies while mitigating their environmental impact. 

The Path Ahead

The current COP29 discussions highlighted the need to power AI infrastructure with renewable energy and establish ethical guidelines for its use. By prioritizing environmental innovation, industries can leverage AI to foster a more sustainable and climate-conscious future.

Nvidia has demonstrated a commitment to energy-efficient innovations and renewable energy adoption, but a clear roadmap to net zero is highly significant. 

By integrating sustainability deeper into its business strategy, Nvidia has the potential to lead not only in technology but also in climate action, setting a benchmark for the industry and ensuring its long-term success.

Duke University Achieves Carbon Neutrality: How Do Carbon Offsets Help?

Jennifer L
-
0
Duke University Achieves Carbon Neutrality: How Do Carbon Offsets Help?

Duke University achieved carbon neutrality in 2024, marking a significant milestone in its sustainability journey. However, achieving this status does not mean the university eliminated all its emissions. 

Instead, it represents a strategic balance between reducing emissions and offsetting those that remain. In Duke’s case, this included a $4 million investment in carbon offsets to neutralize its greenhouse gas (GHG) emissions. 

Duke’s Path to Carbon Neutrality: Balancing Reductions and Offsets 

Duke University, under the American College and University Presidents’ Climate Commitment, pledged to achieve carbon neutrality across its emissions-generating activities. Its Climate Action Plan (CAP) categorizes emissions into three scopes: 

Duke University GHG emissions sources

Duke’s approach aligns with GHG accounting standards from the World Resources Institute, ensuring comprehensive tracking and reduction strategies for all emission sources. The university has significantly cut GHG emissions through various levers including: 

  • Eliminating coal use, 
  • Boosting building and utility efficiency, and 
  • Reducing commuting emissions. 

Future reductions are planned through off-site solar investments and campus upgrades like steam-to-hot-water conversions and heat recovery chillers. Duke remains on track to achieve its 2030 emissions goals. 

However, 2023 emissions rose 9% compared to 2022, primarily due to air travel nearing pre-pandemic levels. Despite this, energy-related emissions are down 41% since 2007, and 2023 levels remain 21% lower than in 2019. 

Duke University carbon offsets for neutrality
To meet the 2024 goal, Duke redeemed 232,000 carbon offset credits to reduce emissions it has been unable to mitigate yet. The university developed a rigorous review process to ensure these credits meet its high-quality standards. Source: Duke University website

Duke’s progress toward carbon neutrality began in 2007 when it launched an institution-wide effort to measure and reduce emissions. By fiscal year 2022, Duke had reduced its emissions by 43%, with plans to reach a 45% reduction by its 2024 deadline. 

Duke University GHG emissions
Chart from Duke’s website
  • However, emissions rose slightly, requiring Duke to offset nearly 69% of its 2007-level emissions instead of the planned 55%.

This reliance on carbon offsets underscores a critical reality: achieving net-zero emissions without offsets is nearly impossible for large institutions. Matthew Arsenault, Duke’s assistant director of carbon and sustainability operations, highlighted that: 

“No institution, no company is going to be carbon neutral without using carbon offsets. There’s literally no way to reduce your emissions actually to zero.” 

Carbon offsets provide a mechanism to balance emissions from essential activities, such as powering campus buildings and transportation. These activities, while minimized through efficiency measures, can only be partially eradicated. 

How Carbon Offset Credits Work 

Carbon offsets allow institutions to balance emissions by funding projects that either reduce GHG emissions or remove existing emissions from the atmosphere. Institutions like Duke use these tools to purchase carbon accounting units traded on carbon markets. These markets enable organizations to buy and sell surplus credits to meet their sustainability and net zero goals. 

For Duke, offsets became a practical and ethical way to achieve carbon neutrality, given the current limitations of emission reduction technologies. 

Carbon Offsets in Action: The Key to Duke’s Carbon Neutrality

Duke’s approach to carbon offsets has evolved over the years. In 2009, the university launched the Duke Carbon Offsets Initiative (DCOI), the first university-based program of its kind. This initiative focused initially on developing new offset projects, such as a methane-capture effort at a North Carolina hog farm, where methane was converted into usable electricity instead of being released into the atmosphere. 

Other early projects included residential energy efficiency upgrades, urban tree plantings, and solar installations. These efforts were designed to both reduce GHG emissions and align with Duke’s broader sustainability values. 

As the 2024 carbon neutrality deadline approached, Duke University shifted its strategy to focus on larger, externally sourced projects to meet its offset needs.

Almost 80% of Duke’s carbon offset portfolio consisted of projects targeting ozone-depleting refrigerants, which contain potent GHGs that can leak into the atmosphere. These projects, developed in collaboration with international partners, represented a significant step in reducing emissions from refrigerants. 

The remaining offsets focused on methane capture from dairy farms and landfills, similar to Duke’s earlier hog farm project. By investing in these projects, Duke ensured its offsets addressed emissions effectively and sustainably. 

Ensuring Quality and Accountability 

Duke’s commitment to sustainability extends beyond simply purchasing offsets. The university employs a rigorous verification process to ensure the quality and ethical standards of its investments. This process involves collaboration with Ruby Canyon Environmental, a registered verifier on carbon markets, to vet prospective offset projects. 

To guide decision-making, Duke developed a comprehensive evaluation tool that includes detailed questions about each project. Criteria such as “additionality” (ensuring the emissions reductions would not occur without the project) and “permanence” (long-term commitment to emissions reductions) are prioritized. 

Projects that meet these standards are further reviewed by an advisory committee of faculty and students before purchase. Fewer than 10% of potential projects pass Duke’s initial evaluation, highlighting the university’s commitment to investing in high-impact and high-integrity carbon offsets. 

What’s Next? Duke’s Plan Beyond Neutrality

While offsets played a key role in Duke’s 2024 achievement, the university recognizes the importance of continuing to reduce its emissions. Efforts are ongoing to expand energy efficiency measures on campus and integrate more renewable energy sources into operations. 

Duke University’s carbon footprint will significantly decrease by mid-2025 when three off-campus solar facilities come online. They have a combined capacity of 101 megawatts. These projects will provide about 50% of the campus’s electricity and contribute renewable energy to North Carolina’s grid for decades. 

Additionally, Duke is exploring ways to include its health system and international campuses, such as Duke Kunshan University, in future emissions tracking. 

The university is now determining its “next-generation” climate goals, focusing on sustaining its carbon-neutral status and further reducing its offset dependency. This includes exploring innovative carbon offset projects, expanding renewable energy use, and encouraging campus-wide engagement in sustainability initiatives. 

Carbon offsets will remain an essential tool in the university’s strategy, but Duke aims to rely on them less as it continues to refine its emissions reduction efforts. With its comprehensive approach and commitment to quality, Duke serves as a model for other institutions seeking to balance sustainability goals with the practical realities of carbon offsetting.

BlackRock Bets on Abu Dhabi for Strategic Growth. Is Crypto Part of the Plan?

Saptakee S
-
0
BlackRock Bets on Abu Dhabi for Strategic Growth. Is Crypto Part of the Plan?

BlackRock, the world’s largest asset manager has obtained a commercial license to conduct operations in Abu Dhabi with a motive to expand its regional presence. Abu Dhabi is a global hub for digital assets and has immense opportunities to attract business from other regions of the world.

Charles Hatami, head of the Middle East for BlackRock highlighted Abu Dhabi’s transformation into a global financial center and emphasized the following:

“Its strategic location, proactive government policies, and commitment to sustainable growth make it an ideal location for capital markets.”

BlackRock Anchors in Abu Dhabi’s Financial Hub

According to Bloomberg, BlackRock revealed it is now seeking regulatory approval to operate in the Abu Dhabi Global Market (ADGM) which is an international financial center for top financial and crypto firms.

Last year, ADGM launched its sustainable finance regulatory framework which strengthened its position to be the top hub for sustainable investments. It’s mandatory for the ADGM companies to meet their ESG disclosure requirements. These measures aim to boost sustainable finance in the region and support the UAE’s net-zero emissions goals.

Focus on the Private Market and AI               

The new office will allow BlackRock to work closely with Abu Dhabi’s sovereign wealth funds, wealth managers, and investment vehicles. The company also aims to leverage opportunities in AI infrastructure and sustainable investment solutions.

Abu Dhabi is competing with Riyadh and Dubai to bolster itself as the Middle East’s main business hub. Abu Dhabi and Riyadh have control over more than $1 trillion in sovereign wealth which could be some of the largest capital pools globally.

Growing Presence in the Middle East

The report also revealed that last month BlackRock received approval from Saudi Arabia to establish regional headquarters in Riyadh. This shows that the asset manager, overseeing $11.5 trillion, is actively growing its footprint in the kingdom.

Significantly, earlier this year, the company announced that it would receive up to $5 billion from the Public Investment Fund to invest in Middle Eastern ventures. Taping on these opportunities the company is building a Riyadh-based investments team to focus on regional opportunities.

Saudi Arabia has been encouraging international firms to enhance their local presence, and BlackRock has responded proactively. The company has partnered with Abu Dhabi’s Sheikh Tahnoon bin Zayed Al Nahyan to support major initiatives. These include funding data warehouse development and energy infrastructure projects which mark one of the largest collaborations in the region.

Betting on Strategic Opportunities

Under CEO Larry Fink’s leadership, BlackRock is betting on the competitive landscape of the Middle East. Media agencies reported that with dual operations in Abu Dhabi and Riyadh, the asset management firm can easily deepen relationships with influential sovereign wealth funds and private investment entities.

Furthermore, BlackRock will focus on advanced infrastructure projects and sustainable investment that will drive financial innovation across the Middle East. This is how BlackRock can strategically align itself to benefit from the region’s growing economic power.

Is BlackRock Expanding its Crypto Business in Abu Dhabi?

Well, BlackRock manages the iShares Bitcoin Trust ETF and has recently achieved a record $10.6 trillion in assets under management (AUM). The company recently reported an increase in both revenue and profits, thereby showcasing its robust financial structure. Its Bitcoin Trust ETF has given exposure to many investors in the U.S. to the world of crypto.

Now speculations are rife whether the company has plans to expand its crypto business in Abu Dhabi also?

Abu Dhabi’s Crypto-Friendly Ecosystem

The UAE has moved beyond oil, focusing on technology and finance as key drivers of economic growth. Subsequently, the government has built a strong and flexible regulatory framework after recognizing the potential of digital assets.

Over the past two years, Abu Dhabi and Dubai have attracted global businesses in digital assets. This shift has drawn in top talent, significant investment, and positive attention to the region.

Notably, the Abu Dhabi Global Market (ADGM) has been a pioneer in cryptocurrency and digital asset regulation. In 2018, its Financial Services Regulatory Authority introduced guidelines on crypto. These rules have been updated regularly since then and have now set transparent and high standards for regulation worldwide. This has reinforced Abu Dhabi’s position as a leader in digital finance.

BlackRock’s Zacks Rank & Price Performance

According to Zack Investment Research: Year to date, shares of BlackRock have gained 29.3% compared with the industry’s 37.5% growth.

BlackRock

BlackRock’s move to establish a presence in the region is a huge milestone for Abu Dhabi’s crypto and financial sectors. However, the company has not disclosed specific crypto-related plans for its UAE operations, nonetheless, it will continue to influence the digital finance infrastructure in Abu Dhabi.

Sources:

  1. UAE, Saudi Arabia: BlackRock Gets Abu Dhabi License Weeks After Nod for Saudi HQ – Bloomberg
  2. How The UAE Became A Crypto Hub Poised For Explosive Growth

Commonwealth Fusion Systems’ Innovative Magnet Powers Fusion to the Grid

Saptakee S
-
0
Commonwealth Fusion Systems’ Innovative Magnet Powers Fusion to the Grid

Nuclear fusion energy is clean, safe, and sustainable. It combines lighter atoms to release vast energy without high-level radioactive waste. Commonwealth Fusion Systems (CFS), the Massachusetts-based fusion giant aims to revolutionize the clean-energy space by generating infinite carbon-free power with its flagship fusion project SPARC. Since its inception in 2018, the company has secured over $2 billion in funding, which makes it the world’s largest private fusion company.

Recently CFS announced that it has built and tested a groundbreaking electromagnet, the Central Solenoid Model Coil (CSMC). This scientific innovation brings the company closer to using clean fusion energy for the grid. 

Commonwealth Fusion Systems’ Mighty Magnet Makes Fusion Feasible

The CSMC test, combined with the already tested (in 2021) and successfully existing Toroidal Field Model Coil (TFMC), proves the functionality of two essential high-temperature superconducting (HTS) magnets. These magnets are crucial for SPARC, the tokamak machine which is designed to demonstrate net fusion energy.

Additionally, the TFMC validated magnets for steady electrical currents, while the CSMC confirmed the capability for pulsed electrical currents.

Brandon Sorbom, Co-Founder and Chief Science Officer noted,

“This is an important milestone on the road to commercialization. When we hit the button and put current through the magnet, it performed like a champ and hit all its major test objectives. The fact that our team was able to develop this technology from benchtop to a fully integrated, at-scale superconducting magnet in just a couple of years is huge.”

The press release also mentioned that CFS developed PIT VIPER which is an advanced HTS cable technology. It aids in powering SPARC’s central solenoid (CS) and poloidal field (PF) magnets. PIT VIPER’s innovative design minimizes heating during rapid current changes, enabling high-performance magnets.

The CSMC Model

commonwealth fusion system

source: CFS

Key test results from the Central Solenoid Model Coil include:

  • Handling electrical currents up to 50,000 amps, enough to power 250 modern homes.
  • Generating a magnetic field of 5.7 teslas—100,000 times Earth’s magnetic strength.
  • Releasing energy rapidly at 4 teslas per second, validating SPARC magnet behavior.
  • Storing a record 3.7 megajoules of energy, equivalent to five pickup trucks traveling at 60 mph.
  • Using fiber optics to detect overheating events, ensuring magnet safety.

CFS and MIT: Partners in Fusion Progress

The successful CSMC test showcases CFS’ leadership in magnet technology. The company scaled up PIT VIPER cable production and demonstrated its ability to design and operate magnets under SPARC-like conditions.

Experts from CFS and the Massachusetts Institute of Technology (MIT) collaborated on this project and conducted the tests at MIT’s Plasma Science & Fusion Center (PSFC). Moving on, CFS plans to produce the first plasma with SPARC in 2026 and achieve net energy soon after. The company’s first power plant, ARC, is expected to deliver electricity to the grid in the early 2030s.

Ted Golfinopoulos, one of the principal investigators at MIT for the CSMC project said, 

“Where the mission of the TFMC was to demonstrate a steady strength, the CSMC needed to demonstrate speed.”

He also hailed the collective effort of the amazing team by remarking,

“Hundreds of hands have touched this coil, from its inception on the drafting board to its long and complicated test program. The ingenuity, perseverance, and heart shown by this close-knit team was as impressive as the coil that sprang from their labors.”

Notably, the U.S. Department of Energy’s Advanced Research Projects Agency–Energy (ARPA–E) and Fusion Energy Sciences (FES) programs supported the innovation.

Commonwealth Fusion Systems Aims to Transform Coal Plants with Nuclear Fusion

From a recent Bloomberg report, we discovered that Tokamak designs were first developed in the 1950s and they already demonstrated the ability to trigger fusion reactions. However, their practical and commercial viability is still questionable. This is because these traditional electromagnets require a humongous amount of power to shift them from scientific experiments to practical energy solutions.

CFS’s blueprint electromagnets that we described earlier can keep the plasma under control and maintain the continuity of the fusion reaction. This is why Bob Mumgaard, CEO of Commonwealth Fusion Systems expressed his satisfaction, saying that this was the last major technology hurdle they needed to clear.  

The report further highlighted CFS’s plans to replace fossil fuel boilers with fusion power by harnessing the same energy source as the sun. The company is already assessing old coal and natural gas plant sites as potential locations for building its first commercial fusion systems. However, their demonstration device is still in the developmental phase.

Nonetheless, CFS is confident of its success and the shift from fossil fuels to clean, carbon-free energy using fusion.

The recently published Global Fusion Industry Report reveals a rapidly intensifying race to commercialize fusion energy. Currently, 45 companies are advancing diverse technologies and have collectively raised over $7 billion. Public-private partnerships are playing a pivotal role in the fusion development process and have brought a remarkable 50% increase in funding.

The investment figures are shown below:

fusion

Source: 2024 Global Fusion Industry Report

Industry reports and expert opinions confirm that the fusion industry is still in its development phase. Building commercial nuclear fusion systems will take time, but progress is accelerating with increased investments and scientific breakthroughs. In this space, Commonwealth Fusion Systems is driving the transition toward a global clean energy future with its groundbreaking innovations.

Sources:

  1. Commonwealth Fusion Systems Magnet Success Propels Fusion Energy Toward the Grid | Commonwealth Fusion Systems
  2. Nuclear Fusion Leader Wants to Build on Site of Old Coal Plants – BNN Bloomberg

Trump’s Second Term Sparks a Turning Point in ESG and Climate Disclosure Policies

Jennifer L
-
0
Trump’s Second Term Sparks a Turning Point in ESG and Climate Disclosure Policies

The U.S. stock market saw its biggest weekly gain in a year just one week following Donald Trump’s re-election. However, clean energy stocks tumbled as investors worried Biden’s pro-renewables agenda would be replaced by Trump’s “drill, baby, drill” policies. And recently, Vivek Ramaswamy, known for his strong opposition to environmental, social, and governance (ESG) investing, was appointed to co-lead Trump’s government efficiency group. 

A biotech entrepreneur Ramaswamy has long criticized ESG standards, arguing they hurt economic growth. His new position could mean major changes to environmental regulations and corporate climate reporting. 

His role is to help cut regulations, reduce government waste, and overhaul federal agencies. This appointment signals a shift in U.S. climate and investment policies.

ESG Under Fire: What It Means for Corporate Climate Disclosure

The drop in clean energy stocks highlights the challenges for sustainable finance. Over the past two years, Republicans have pushed back against ESG investing, leading several states to boycott ESG-focused asset managers.

A Bloomberg Intelligence report highlights Trump’s potential efforts to restrict shareholders from filing ESG-related proposals. This follows more lenient SEC rules that have driven a 47% increase in ESG proposals since 2021.

ESG proposals 2023
Source: Harvard Law School Forum on Corporate Governance

Referring to the chart above, two major trends stand out for 2023. First, climate change proposals continue to rise. Second, there’s a surge in resolutions on reproductive health following the U.S. Supreme Court’s Dobbs decision, which has led to widespread restrictions. 

ESG proposals percentage share 2023
Source: Harvard Law School Forum on Corporate Governance

Meanwhile, anti-ESG proposals are growing (13% in 2023), though they lack support and primarily aim to block ESG efforts without offering solutions. But with a second Trump administration will likely make big changes. 

According to Rob Du Boff, a senior analyst at Bloomberg Intelligence, a Trump presidency could restrict ESG-related shareholder proposals. He particularly noted that:

“The bottom line is the Trump administration is anxious to undermine these ESG-related initiatives.”.

While the SEC’s climate risk disclosure rule faces an uncertain future under Trump’s presidency, U.S. companies still need to prepare for reporting requirements in California and Europe. These regulations demand transparency about emissions and climate risks, regardless of federal policy shifts.

California’s laws require businesses with over $1 billion in revenue, roughly around 5,344 companies, to disclose Scope 1, 2, and 3 emissions starting in 2026. They must also have these emissions verified by third-party organizations. 

Additionally, companies with revenue exceeding $500 million, over 10,000 of them, must submit climate risk reports explaining how extreme weather, supply chain issues, and regulations could affect their operations.

These rules apply to thousands of businesses, forcing them to enhance their climate reporting efforts.

Legal Battles and Compliance

Despite legal challenges, California’s climate laws remain on track. Business groups, including the U.S. Chamber of Commerce, sued the state to block these mandates, arguing they place an undue burden on companies. 

However, a federal judge recently allowed the case to proceed to trial, delaying any immediate relief for opponents.

Michael Littenberg, a legal expert on ESG, advises companies to prepare now. “Businesses are at different stages of readiness,” he said, “but those operating in California must ensure compliance.”

Global Trends in Climate Reporting

Globally, climate disclosure rules are expanding. The European Union has already implemented strict regulations, and 29 other countries are in various stages of adopting similar policies. Together, these jurisdictions represent 55% of global GDP.

Steven Rothstein from the Ceres Accelerator for Sustainable Capital Markets notes that U.S. companies with international operations are already aligning with global standards. Rothstein also explained that Canada, Australia, and Brazil have their disclosure requirements, too.

Consistency in reporting frameworks is essential for corporate leaders planning decades ahead. This global momentum ensures climate data remains crucial, regardless of U.S. political changes.

What’s Next for ESG and Climate Policy?

The ESG standard faces an uncertain future in the U.S. Many Republican-led states have passed laws banning ESG considerations in public investments, arguing they politicize financial decisions. However, these laws have sparked legal challenges from business groups.

Experts believe the term “ESG” might eventually be replaced. It’s a politically charged term but while alternative terms exist, none have gained widespread acceptance.

Despite political opposition, sustainability data will continue to guide investments. Julie Anderson, formerly of BlackRock, emphasized the importance of climate information. She said that investors seek any data that can impact financial performance and if ESG factors affect profits, they will influence decisions.

The Trump administration is expected to weaken ESG-related policies, including revising a 2022 rule that allows retirement fund managers to consider ESG risks. However, experts believe the push for sustainability will persist in the private sector. 

More notably, certain areas of climate policy like carbon removal, nuclear energy, and critical minerals may still see progress due to bipartisan support. 

Bipartisan Climate Wins: Carbon, Nuclear, and Critical Minerals

Carbon removal technologies, such as direct air capture and enhanced carbon storage, are critical to reducing greenhouse gas emissions. Bipartisan bills like the CREST Act and the CREATE Act aim to advance research and development in this space, benefiting both the economy and the environment.

Nuclear energy is another area with widespread bipartisan backing. With its potential to provide large-scale, low-carbon power, nuclear energy is seen as a key component of the clean energy transition. Recent legislative efforts, such as the ADVANCE Act, focus on modernizing reactor technologies and increasing domestic nuclear capacity.

The critical minerals sector is another focal point due to its importance for renewable energy technologies like wind turbines, solar panels, and electric vehicle batteries. 

Legislation such as the Critical Minerals Security Act and the Critical Mineral Access Act seeks to enhance mining and processing capabilities while supporting global projects that align with U.S. national security interests. These efforts reflect a shared commitment to ensuring the availability of materials crucial for the clean energy transition.

Even with political shifts, the importance of ESG and climate data isn’t going away. Investors and corporations alike are recognizing that sustainability plays a crucial role in long-term success and U.S. businesses must adapt to stay competitive as the world moves toward greater climate accountability. 

Lithium’s Essential Role in EV Battery Chemistry and Global Supply Dynamics

Saptakee S
-
0
Lithium’s Essential Role in EV Battery Chemistry and Global Supply Dynamics

Lithium is an essential component in lithium-ion batteries which are mainly used in EVs and portable electronic gadgets. Often known as white gold due to its silvery hue, it is extracted from spodumene and brine ores. After mining it is processed into:

  • Lithium carbonate is commonly used in lithium iron phosphate (LFP) batteries for electric vehicles (EVs) and energy storage.
  • Lithium hydroxide, which powers high-performance nickel manganese cobalt oxide (NMC) batteries.

Diversifying Lithium Supply

According to IRENA’s 2024 edition of the Critical Minerals Report, last year global lithium production reached 0.96 million metric tons (Mt) of lithium carbonate equivalent (LCE) which could suffice short- to medium-term demand. But beyond 2030, recycling will play a crucial role in lithium supply, with 0.4 Mt of LCE expected to be available annually by 2035.

Lithium supply and demand in 2023 and 2030

lithium supply

The report says that at present lithium mining is highly concentrated, with over 90% sourced from Australia, Chile, and China. This has also led to global supply chain vulnerabilities.

However, efforts to diversify production are underway, with countries like the Democratic Republic of Congo, Germany, Ghana, and Portugal increasing their investments in lithium exploration. These initiatives could help reduce dependence on a few dominant suppliers and spread mining activities across the globe.

What’s Driving Lithium Demand?

Even though we have reported earlier, the answer remains the same. It is the EV market that’s primarily driving lithium demand. It’s projected to form 82% of total demand by 2030 which is a significant increase from 62% in 2022.

Other applications, such as energy storage systems, electronics, and industrial uses, are expected to contribute between 0.43 and 0.60 Mt of demand annually by 2030.

Meeting this growing demand will require a mining expansion, diversified supply chains, and robust recycling systems to ensure a steady and sustainable lithium supply for the future.

Lithium demand from EV batteries and other applications, 2022 and 203

lithium demand

Li-FT Power: Exploring & Developing Hard Rock Lithium Deposits In Canada

Li-FT Power Ltd. (TSXV: LIFT) recently announced its first-ever National Instrument 43-101 (NI 43-101) compliant mineral resource estimate (MRE) for the Yellowknife Lithium Project (YLP), located in the Northwest Territories, Canada.

An Initial Mineral Resource of 50.4 Million Tonnes at Yellowknife.

This maiden estimate is a major milestone for the company and marks a significant step forward in the project’s development. Li-FT Power’s upcoming mineral resource is expected to further solidify Yellowknife as one of North America’s largest hardrock lithium resources.

Click to learn more about lithium and Li-FT Power Ltd. >>

________________________________________________________________________

EV Battery Production Set to Triple by 2030

  • Lithium-ion battery production is expected to be 3X by 2030, increasing from 2,000 GWh/year in 2023 to 7,300 GWh/year.
  • This growth will meet the EV battery demand of 4,300 GWh/year by 2030 under a 1.5°C climate scenario.

This projected growth includes operational factories, construction projects, and announced plans. However, some projects are still waiting for finalizing investments. These batteries won’t just power EVs; they’ll also support rising demand from energy storage systems and portable electronics.

As EV sales accelerate, the demand for EV batteries is increasing rapidly. Passenger cars and trucks are driving most of this demand due to their high sales volumes and the large battery sizes required for trucks. EV battery demand is expected to exceed 4,300 GWh annually by 2030, representing a five-fold increase compared to 2023.

In addition to EVs, other sectors like battery energy storage systems (BESS) are also increasing battery demand. BESS demand is projected to grow six-fold between 2023 and 2030, but EV batteries will account for nearly ten times more demand by the decade’s end.

What Makes Up an EV Battery?

An EV battery is a pack of battery cells stacked together, comprising the following components:

  • Anode: Typically made of graphite.
  • Cathode: Often composed of lithium metal oxides.
  • Electrolyte: A liquid or solid lithium salt.

These components work together to move lithium ions during charging and discharging. This process enables energy storage and release, powering the vehicle.

Battery system components and internal components of a battery cell

lithium EV battery

EV Battery Chemistries: A Closer Look

The cathode and anode represent most of the critical materials in an EV battery. Cathode types vary and include, Nickel Manganese Cobalt Oxides (NMC), Nickel Cobalt Aluminum Oxides (NCA), Nickel Manganese Cobalt Aluminum Oxide (NMCA), Lithium Iron Phosphate (LFP), and Lithium Manganese Iron Phosphate (LMFP). All these chemistries rely on lithium, but their compositions differ.

Now speaking of EV battery anode, pure graphite is the most widely used material. EV batteries typically use a mix of natural and synthetic graphite. The ratio depends on the cost, performance needs, and battery type.

Copper is another key material in EV anodes. Copper foils act as current collectors, playing a vital role in the battery’s operation.

These variations impact the choice of materials, cost, and environmental footprint and fuel the demand for critical minerals in the EV battery industry.

Estimated average critical material composition of selected EV battery packs

irena ev battery lithum

Asia-Pacific Leads in EV Battery Production

The Asia-Pacific region currently dominates global battery production, holding about 75% of capacity. By 2030, this share is expected to dip slightly to 70%, as other regions ramp up production. Europe is projected to see the fastest growth, with a 10X increase in capacity between 2023 and 2030.

This rapid expansion highlights the global push to support EVs and other technologies, ensuring the world moves closer to a cleaner energy future.

Regional lithium-ion battery manufacturing capacity in 2023 and planned capacity for 2030

IRENA lithium

Source: Data and Visuals from IRENA: Critical materials: Batteries for electric vehicles

Nickel Demand to Triple by 2030: Can the Market Keep Up?

Jennifer L
-
0
Nickel Demand to Triple by 2030: Can the Market Keep Up?

Demand for battery-grade nickel is expected to surge, tripling by 2030, according to Benchmark Mineral Intelligence. This growth will largely be due to mid- and high-performance electric vehicles (EVs) in Western markets.

A senior nickel analyst at Benchmark, Jorge Uzcategui, particularly noted that:

“China will see growth too, but it won’t match the pace in ex-China regions.”

Despite lithium iron phosphate (LFP) batteries dominating the Chinese market, nickel-based chemistries are set to hold a significant share globally. Their superior performance and limited LFP supply chains outside China support this trend.

nickel chemistries market share

EV Sales Stall, Nickel Demand Slows

Battery nickel demand has faced setbacks in 2024 due to slower-than-expected EV sales in Western markets. Inflation and high interest rates have made EVs less competitive compared to internal combustion engine (ICE) vehicles.

This slowdown has pushed automakers to delay or revise their EV targets in Europe and North America. It has also led to gigafactory project cancellations, reducing North America’s 2030 battery supply forecast by 3% and Europe’s by 10%, according to Benchmark’s data.

China, however, has seen record EV sales, with almost 1.2 million units sold in October alone. But most of these vehicles use LFP batteries, limiting the impact on nickel demand.

Additionally, battery producers are leaning toward mid-nickel NCM chemistries. These offer better thermal stability and reduce the risk of overheating, making them more attractive amid low cobalt and manganese prices.

Nickel Poised for a Comeback

Despite current challenges, the long-term outlook for battery nickel remains strong. Although weak demand and expanded supply have pulled nickel prices to their lowest levels since 2020, demand for battery-grade nickel is projected to grow 27% year-on-year in 2024.

nickel demand forecast

Looking ahead, nickel-based chemistries are expected to dominate, capturing 85% of battery cell production capacity outside China by 2030. High-nickel chemistries will play a growing role as EV technology advances.

  • Benchmark forecasts that over 50% of nickel demand growth by 2030 will come from batteries. By the end of the decade, battery nickel demand could hit 1.5 million tonnes annually.

Price Rollercoaster: Will Oversupply Keep Nickel Down?

With the projected growing demand for nickel, how about the metal’s prices? 

In the third quarter of 2024, nickel prices started on a downward trend. After reaching a high of $21,615 per metric ton in May, the price fell to $17,357 by July 1. In August, nickel prices hovered between $16,150 and $16,500 before climbing to $17,136 on August 27. 

However, in early September, prices dropped again, reaching a low of $15,741 on September 10. This was close to the year’s lowest price of $15,668, recorded in February. Despite this, prices surged in late September, peaking at $17,698 on October 1.

nickel prices LME 3M drops

Oversupply from Indonesia

The main issue for nickel prices has been oversupply, especially from Indonesia. The country increased its mined nickel production by 99,000 metric tons in Q3. By the end of 2024, Indonesia is expected to increase production to 2.4 million metric tons, making up 57% of global output.

Indonesia 2023 nickel production

Indonesia has capitalized on its 2020 nickel ore export ban, drawing billions in foreign investment for its mining and EV supply chains. This strategic move has bolstered Indonesia’s dominance in the nickel market. 

According to Adrian Gardner, principal analyst at Wood Mackenzie, Indonesia is set to account for 60-65% of global nickel mine production, solidifying its role as a key player in the industry. Gardner further noted that:

“We have seen on several occasions that, when Indonesia stopped or restarted ore exports and threatened to stop nickel pig iron and intermediate product exports, there was a reaction in nickel prices. The government sets the rules, and the rules are the tools.” 

S&P Global Market Intelligence reveals a dramatic surge in Indonesia’s nickel ore imports from the Philippines. From January to August 2024, imports skyrocketed to 5.3 million metric tons, a massive leap from just 53,904 metric tons during the same period in 2023.

Although Indonesia dominates production, its quota system has made it difficult for Chinese smelters to secure a steady supply. This forced them to cut output temporarily. To keep up, Indonesian refiners turned to imports from the Philippines, the world’s second-largest nickel producer.

Despite relying heavily on China’s investment, Indonesia is looking to diversify its partnerships, particularly with Western countries. However, a new trade deal with China includes a $1.42 billion agreement between China’s GEM and Indonesia’s PT Vale to build a plant for processing battery-grade nickel.

Another major project involves China’s Huayou Cobalt, Ford, and PT Vale. They plan to invest $2.7 billion in a facility that will produce nickel for EV batteries.

More recently, China launched a $1.4 trillion debt swap to address its financial challenges and promote economic growth. It also plans to lower the deed tax for homebuyers to further stimulate the economy.

Challenges and Opportunities in Western Markets

In Canada, the government has committed C$46 billion to develop four EV battery plants. However, industry experts say this will require more raw materials than Canada can currently produce. The country may need up to 15 new mines to meet demand.

Europe faces its own challenges with the new Carbon Border Adjustment Mechanism (CBAM), which taxes carbon-intensive imports. Some in the steel industry argue that CBAM won’t benefit them, as it only considers direct emissions.

Meanwhile, European steelmakers are increasing their reliance on nickel pig iron imports from Indonesia. This trend has led to production cuts in Europe as they struggle to compete with cheaper imports.

Ultimately, the global race for nickel and other critical minerals intensifies as countries seek energy independence. Amid all this is an emerging key player. Alaska Energy Metals Corporation (AEMC), a Canadian mining firm, is advancing its 23,000-acre Nikolai deposit to boost domestic nickel supply.

AEMC President Greg Beischer emphasizes the importance of a sustainable U.S. supply chain. The nickel junior’s top priorities include navigating fluctuating nickel prices and securing funding to advance its Nikolai project.

The company plans to complete an economic assessment by 2025. This initiative supports U.S. efforts to develop local sources of critical minerals, reducing dependence on foreign imports and strengthening domestic supply chains.

What’s Next for Nickel Prices and Demand?

China will continue to play a major role in the nickel market, both in supply and demand. Although China’s EV sector grew 32% year-on-year in the first nine months of 2024, it hasn’t been enough to offset weak demand in other sectors.

Nickel prices are expected to face continued pressure in the coming years due to a surplus. With a 5.8% annual growth rate in supply projected through 2028, producers may struggle to restart operations as prices remain flat.

Investors should closely watch developments in China and Western markets, as they will heavily influence nickel’s future. While short-term hurdles exist, battery nickel demand is poised for long-term growth. As EV adoption rises globally, nickel’s role in the energy transition will only strengthen.

Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: AEMC.

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article.

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involves risks that could lead to a total loss of the invested capital.

Please read our Full RISKS and DISCLOSURE here.

COP29: Launch of “An Eye on Methane”, Will Pledges Turn into Progress?

Saptakee S
-
0
COP29: Launch of “An Eye on Methane”, Will Pledges Turn into Progress?

According to the IEA, methane is responsible for around 30% of the rise in global temperatures since the Industrial Revolution. While carbon dioxide is mostly given importance in climate discussions, addressing methane removal is equally critical to achieving climate targets. At COP29, methane was much talked about with the launch of the 2024 report- An Eye on Methane.

The report revealed that the tools to cut methane emissions exist but a significant gap remains between commitments and action. The 2024 An Eye on Methane Report by the United Nations Environment Program’s (UNEP) International Methane Emissions Observatory (IMEO) emphasizes the urgency to close this gap.

Methane’s Alarming Impact: Short-Lived but Powerful

IEA reported that the latest Global Methane Budget estimated annual global methane emissions to be around 580 million tons (Mt). Of this, approximately 40% comes from natural sources, while 60% is due to human activity.

In 2023, the energy sector accounted for nearly 130 Mt of methane emissions, making it the second largest contributor after agriculture, which emitted around 145 Mt in 2017.

Methane stays in the atmosphere for about 12 years which is shorter than carbon dioxide’s lifespan of centuries. However, it absorbs far more energy during that time which makes it a potent greenhouse gas and a major cause of climate change. This is why, rapid and sustained reductions in methane emissions from the energy sector are crucial to keeping global warming within 1.5°C.

Additionally, methane contributes to air pollution by forming ground-level ozone, which is harmful to health. Leaks also pose explosion risks and other safety concerns. We can see that the impact of methane emissions is directly felt on air quality, climate, and health. Thus, cutting these harmful emissions is essential for improving both environmental and public health.

Sources of methane emissions, 2023

methane emissions IEA

Source: IEA

Tracking Methane with Cutting-Edge Tools

UNEP’s IMEO is leading efforts to monitor and reduce methane emissions. It gathers data from several sources, including:

  • Oil and Gas Methane Partnership 2.0 (OGMP 2.0): Industry reporting on emissions.
  • Methane Alert and Response System (MARS): Satellite-based alerts for large methane leaks.
  • Scientific Studies and National Inventories: Comprehensive research and emission records.

So far, MARS has flagged over 1,200 significant methane leaks to governments and companies. These alerts offer clear opportunities for action. However, only 1% of these notifications have received responses, revealing a significant lack of follow-up.

Satellites and AI: A Powerful Combination

MARS uses advanced satellite technology and artificial intelligence to detect methane emissions. This system helps governments and industries locate and address major leaks quickly. However, results would show up only when the leaks are fixed. This highlights the necessity for a “call to action”.

Despite these capabilities, very few emitters are using these tools. The report emphasized that companies and governments must engage more actively. The system is operational, but it needs collaboration to make a meaningful difference.

Changes in atmospheric methane concentrations, 1990-2023

Methane data IEA

Source: IEA

The Global Methane Pledge: Can the Champions Charge Ahead?

Global Methane Pledge (GMP) Champions include Canada, the European Union, the Federated States of Micronesia, Germany, Japan, Nigeria, and the United States.

These countries are urging other nations to implement active methane mitigation measures and integrate them into their Nationally Determined Contributions (NDCs). Notably, the NDCs if pertain to limiting warming, should explicitly include how methane reductions will help achieve climate targets. This step is vital to achieving the Global Methane Pledge’s target of reducing global methane emissions by 30% from 2020 levels by 2030.

Additionally, their agenda and progress are significant for the methane session at COP29.
The GMP Champions stresses the energy sector’s role in meeting methane reduction goals which also align with the G7’s commitment to cut methane emissions from fossil fuels by 75% by 2030. They also urge countries to adopt methane regulations and policies for oil and gas operations.

Lastly, as already explained before accurate data is critical for action. The Champions also call on governments to use the MARS and the private companies to join the (OGMP) 2.0 for better emissions tracking.

The global methane monitoring system is already ready to drive change. However, its success depends on turning data into action. For this, governments must enforce accountability by holding emitters responsible for addressing methane leaks and subsequently repairing them.

Significantly, the “An Eye on Methane” report is “a call to action” that pushes stakeholders to harness the methane data revolution. Methane’s harmful impact on global warming and human health made it a top priority at this year’s COP29 summit. And as the leaders said, the time to act is NOW!

Sources:

  1. An Eye on Methane 2024 | UNEP – UN Environment Programme
  2. Global Methane Pledge Champions Call for Accelerated Global Action on Methane Mitigation, Spotlight New Super Pollutant NDC Guidance | Global Methane Pledge
  3. Global Methane Tracker 2024 – Analysis – IEA

Global EV Trends: Growth, Challenges, and the Future of Electric Mobility

Saptakee S
-
0
Global EV Trends: Growth, Challenges, and the Future of Electric Mobility

From metals to mining, energy to electricity, and transport to transmission, every sector is pivoting toward sustainability. The automotive market has already adopted renewable solutions, and one such is Electric Vehicles (EVs), which are playing a significant role in combating transport emissions.

Recent data shows EV sales skyrocketed from under a million in 2012 to about 14 million in 2023. This rapid growth indicates a reduction in oil consumption and a shift toward cleaner energy options for road transportation.

Despite this seemingly impressive EV boom, they currently make up less than 2% of the total global vehicle fleet, according to the International Energy Forum’s (IEF) latest report. This percentage shows there’s ample scope for EV expansion in the future.

At the same time, it leaves one wondering if the EV momentum is slowing down or will pick up space in the coming years. Let’s analyze it here…

Projected EV Sales: Regional Disparities

We discovered from the BloombergNEF report that EV sales including battery-electric and plug-in hybrid vehicles can spike up to 16.7 million units this year but was 13.9 million in 2023.

However, global EV penetration will be unevenly distributed and will vary region-wise. 

global EV - electric vehicle sales

source: S&P Global

China

The report further revealed China has captured the global EV market, claiming six out of every ten plug-in vehicle sales worldwide this year. The EV share of domestic car sales was more than 50%, with September alone seeing a nearly 50% surge in sales.

However, Chinese EV sales mainly came from plug-in hybrids and range-extended EVs, rather than battery-electric vehicles (BEVs) that fueled earlier growth. Notably, retail BEV sales in China have grown by 18% this year, while overall plug-in vehicle sales have climbed 37%.

From this data, we can infer that EV sales are not slowing down in China. But this can put pressure on international automakers with stiff competition.

The U.S.

Bloomberg reported that the US EV market is far behind that of Europe and China but hit a high in the third quarter, with around 390,000 vehicles sold.

They further reported that while Tesla’s market share has declined this year, dropping below 50% of all EVs sold in the US, other automakers have stepped up. Companies like GM and Hyundai have significantly increased their sales which made up for Tesla’s slowdown and added a spark to the industry.

On the other hand, media reports say that the EV industry experienced this sudden jerk after President Donald Trump planned to end the consumer tax credit for electric vehicles. Rivian Automotive, Lucid, GM Motors, and Ford Motor joined the fleet, experiencing a sharp stock drop.

Japan and EU

Japan and Germany despite being the major hubs for the largest automotive brands have not only experienced a market slowdown but a massive decline in EV sales.

Several media agencies reported on the challenges for electric vehicles in the European market for a considerable period. This is mainly because of the highly-priced EV models in the market and the pricing system.

BNEF’s head of advanced transport, Colin McKerracher, described gauging the current EV demand in Europe as “complicated”. He commented,

“Automakers are holding off launching more affordable EV models until 2025 when vehicle CO2 targets across the bloc toughen again. They are trying to recoup the full development costs of their EV platforms across relatively low sales volumes.”

He also added that they are likely to see “history” repeat in Europe, with automakers prepping more affordable models like the new Renault 5, Hyundai Inster, Fiat Grande Panda, Skoda Epiq, and VW ID2.all.

Germany experienced a sharp 61% drop in EV sales in August, raising concerns at first glance. However, the decline isn’t as alarming as it seems. In August 2023, a rush to buy EVs before a subsidy cut caused a significant spike in sales, creating an inflated baseline for year-over-year comparisons. This pull-forward effect distorted the figures, making the 2024 drop appear more dramatic than it is.

Who’s Ahead in Global EV Adoption?

EV penetration is set to grow significantly worldwide. The Internation Energy Forum stressed on the following data:

  • IEA projected, that the number of EVs per 1,000 people will rise from less than 1% in 2020 to 28% by 2035 globally.
  • China leads with a projected 57% EV adoption among passenger cars by 2035 while the U.S. and EU will reach 30% and 28%, respectively.

Once again China is driving the surge in demand where EVs can cover 70% of road transport within a decade. In contrast, regions like Asia, the Middle East, Africa, and South America show slower adoption. By 2035, EV penetration in these areas will remain around 8% under the IEA’s Stated Policies Scenario. The disparity highlights uneven progress in electric mobility and the challenges for global emissions reduction goals.

The data reveals that there’s a slower pace of EV adoption in developing regions. This highlights the need for supportive policies and better access to sustainable transport solutions.

Electric Vehicle penetration per 1,000 inhabitantsEV electric vehicle International Energy Forum

source: International Energy Forum Report 2024

Removing Trade Hurdles for a Greener EV Future

The rapid increase in EV production relies on a robust critical minerals supply chain like lithium, cobalt, and nickel. As we have seen, these materials are essential for manufacturing EV batteries, motors, and renewable energy storage systems.

Imposing trade restrictions on EVs, batteries, and critical minerals creates challenges for adopting clean technologies. It also creates significant delays in the EV manufacturing process.

Even though such policies may support domestic EV growth they come with risks. For example, tariffs on EVs and essential components increase costs for both manufacturers and consumers. Higher costs subsequently make it difficult for countries to deploy cost-effective solutions. If consumerism decreases then delay in progress to achieve climate goals is inevitable.

global ev electric vehicle battery demand

source: S&P Global

Thus, minimizing barriers in the supply chain is crucial for maintaining a balance in electric vehicle supply and demand. Moreover, governments and industries must work together to streamline trade and avoid complex policies that could disrupt this progress. Once EVs continue to dominate the mobility sector, reliance on fossil fuels will automatically wean off.

Content Sources:

  1. Transportation and Mobility Energy Demand Outlook Report
  2. Are Global EV Sales Really Slowing Down? | BloombergNEF
123...149Page 1 of 149