Worlds First Carbon Neutral Cement Plant Being Built in Sweden

Simon H
-
0
Worlds First Carbon Neutral Cement Plant Being Built in Sweden

Heidelberg Cement has announced intentions to eliminate carbon emissions from a Swedish facility in an effort to decarbonize one of the world’s most polluting sectors.

Cement manufacturing contributes significantly to atmospheric carbon, partly due to the energy required to make the material, but primarily due to the way limestone is processed.

The rock is crushed and burnt to remove calcium, which is the binding agent and primary component in cement, while the undesirable carbon is discharged into the atmosphere.

Globally cement is the source of about 8% of the world’s carbon dioxide (CO2) emissions.

The renovation plans will upgrade Sweden’s 2nd largest source of greenhouse gas emissions.

This upgrade will save 1.8 million tonnes of CO2 per year and the projected upgrade is set to be completed by 2030.

According to the company the exact method used to collect the pollutants is not yet chosen as there are numerous possible technology suppliers to be evaluated first.

But they have ensured that it will use “amine technology” which is a chemical compound that absorb CO2 from gases.

The amine gas treatment process uses aqueous solutions of various alkylamines (known as amines) to dissolve and remove hydrogen sulfide and CO2 from the refinery sour gases.

Although the technique is costly and cannot currently remove 100% of emissions from industry flues, amine methods are used to scrub carbon from manufacturing flues.

Once caught, the CO2 will be buried beneath the North Sea in holes produced by fossil fuel extraction. In a sense the carbon being returned to the same place hydrocarbons were extracted by various oil and gas projects.

Carbon capture and storage refers to the technique of collecting carbon and burying it underground (CCS). Unlike CCS projects that collect carbon from the atmosphere, however, the project will not immediately result in a net reduction in atmospheric CO2.

The facility will continue to be fueled primarily by fossil fuels, implying that the CCS process, if successful, will instead prevent additional emissions from entering the atmosphere.

The project has the potential to be carbon negative since the factory would receive a portion of its energy from burning biomass, which includes carbon that plants have taken from the atmosphere via photosynthesis.

The factory, which provides three-quarters of Sweden’s cement, was scheduled to be upgraded by 2030.

This project follows another carbon-reduction initiative at a Heidelberg Cement factory in Norway, which will serve as a model for the Swedish operation.

Work is currently underway at the first plant to convert the plant using amine technology to capture 400,000 tonnes, or half of the facility’s emissions, beginning in 2024.

Original Source: https://www.dezeen.com/2021/07/15/carbon-neutral-cement-plant-slite-heidelbergcement/

7 Key Takeaways from The EU’s New Green Deal

Simon H
-
0
7 Key Takeaways from The EU’s New Green Deal

The European Union has published its strategy for meeting stronger 2030 climate objectives and eventually eliminating emissions by mid-century.

There are hundreds of new measures for lowering carbon across the economy. But here are some major aspects of the so-called “Fit for 55” package the EU’s effort to reduce emissions by at least 55 percent from 1990 levels.

While several years of negotiations are needed before the proposed legislation goes into effect, there are significant changes in the works for individuals and industry.

Here are some of the most significant, ranging from the cost of an airline ticket to the expense of heating your house.

1. System of Emissions Trading – Reduce emissions as soon as possible.

Overview: The EU intends to utilize its world-leading carbon market to reduce emissions sufficiently to meet its new 2030 objective. To that end, it intends to accelerate the rate at which emission caps are reduced each year, requiring businesses, electricity companies, and airlines to reduce their carbon footprint more quickly.

Importance: This will be the most significant revamp of the Emissions Trading System to date, impacting everything from the cost of flights to the cost of your power bill – however there will be a social fund to assist the most vulnerable. Following the announcement of the plans, carbon prices momentarily rose on Wednesday.

2. Mechanism for Adjusting the Carbon Border – Ensure that Europe is not undercut.

Overview: In a world first, the EU intends to charge imports of steel, cement, and aluminum from nations with lower environmental standards. Importers will be required to purchase special certifications at a price linked to the Emissions Trading System, which will essentially be a penalty for bringing in such commodities, which will also include fertilizer and power.

Importance: The EU understands that an ambitious climate strategy has drawbacks, such as making its firms susceptible to competitors outside the EU who are not subject to the same rigorous environmental regulations.

This is an effort to mitigate that danger, and it has global implications, perhaps pushing other nations to increase their own climate efforts. However, the system will be sophisticated in order to maintain compliance with global trade norms, and even the most thorough design will not eliminate the danger of diplomatic schisms with EU trading partners ranging from the United States to Russia or China.

3. Shipping and aviation – Remove exemptions for some of the more polluting industries

Overview: For the first time, the shipping industry will be involved in the Emissions Trading System, while airlines, who are currently participating, will ultimately have to pay for all of the pollution produced by their planes. The Commission also wants to see more sustainable aviation fuel blended into conventional jet fuel, and it is proposing a fuel-tax regime that would impose minimum taxes on both the shipping and aviation sectors.

Importance: Despite the enormous emissions of the transportation industry, shipping and aviation have been mostly spared from the most stringent environmental laws until recently. The new restrictions may be especially difficult for low-cost airlines, and consumers may face increased ticket prices as a result. However, the rules may benefit the region’s rail business as tourists choose for cleaner choices and the budding sustainable-fuel industry.

4. Emissions Regulations for Automobiles – Get rid of the Internal Combustion Engines.

Overview: The EU proposes that emissions from new automobiles decline by 55% by 2030 and reach zero by 2035. This is a considerable tightening of current objectives, which call for a 37.5 percent reduction from 2030, albeit it falls short of the projected 65 percent decrease.

Importance: Passenger vehicles account for around 12% of overall EU CO2 emissions, so reducing that production will be critical to meeting the bloc’s targets.

The legislation will increase demand for electric vehicles, and automakers are preparing. Volkswagen AG, the region’s largest manufacturer.

For example, anticipates that by 2030, more than 70% of its namesake brand sales would be electric. The legislation may help improve infrastructure by requiring member states to construct charging stations at regular intervals along important routes.

5. Renewable Energy Goals – increase % of energy derived from Renewable Sources.

Overview: The EU executive proposes increasing the EU’s renewable’s objective to 40% of the energy mix by the end of the decade, up from the current 32% target. It also intends to increase the use of clean fuels in transportation.

Importance: In order to reach its targets, Europe must increase the proportion of power generated from renewable sources. The new legislation will benefit renewable energy providers, which has already surpassed fossil fuels as the primary power source in Europe’s electric system.

6. Energy Conservation – Conserve More Energy

Overview: The Commission intends to encourage energy efficiency in a variety of industries, ranging from construction and agriculture to transportation and communications. It intends to require all public entities to remodel their facilities in order to spend less energy.

Efficiency standards will have to be taken into account in public bids, and governments will have to focus on boosting energy savings among vulnerable customers, therefore assisting in the alleviation of energy poverty.

Importance: The EU barely met its 2020 energy efficiency target owing to “exceptional circumstances,” a clear allusion to the pandemic’s economic impact. Current national climate and energy plans for 2030 are insufficient, with 29.4 percent reductions in energy use throughout the continent, falling short of the present EU target of 32.5 percent efficiency.

7. Forestry and Land Use – Absorb more carbon from the atmosphere

Overview: The EU intends to raise the amount of carbon dioxide absorbed by “sinks” like forests and grasslands to 310 million tonnes per year by 2030, up from approximately 270 million tonnes now.

The EU is also developing a system of carbon-removal certificates, which would help reduce agricultural emissions by allowing farmers to offset their pollution.

Importance: The EU understands that it is not only about cutting emissions, but also about absorbing what is currently out there. The ideas would necessitate higher forest protections, but the real cost is very low: between five and ten euros each tonne of CO2 absorbed from the atmosphere.

Adapted from: https://www.bnnbloomberg.ca/the-seven-elements-of-the-eu-green-deal-you-should-care-about-1.1628856

G20 Leaders Discuss Carbon Pricing to Combat Climate Change

Tony S
-
0
G20 Leaders Discuss Carbon Pricing to Combat Climate Change

Carbon Pricing has finally been recognized as a legitimate way to combat climate change by G20 leaders, in a communique released Saturday. Country officials have been slow to release details on directly combatting climate change, mainly due to influence from the Trump administration. However, the “Biden Effect” is coming into play in international climate change decisions resulting in open discussions.

The communique mentioned “the use of carbon pricing mechanisms and incentives” as an appropriate way to combat global warming.  This is the first-time carbon pricing has been mentioned as a solution to climate change according to French finance minister Bruno Le Maire, a staunch supporter of carbon pricing.

Biden is considering different measures to reduce carbon emissions according to U.S. treasury secretary Janet Yellen. One such solution does involve putting a base price on carbon emissions. This price would then act as a baseline for other countries to erect their own carbon pricing methods. This differs from Mr. Le Maire’s idea of having a global floor for all carbon prices throughout the world.

It is still early to see how G20 leaders will proceed in their carbon pricing measures as the EU will introduce tariffs on carbon imports on July 14, the first of its kind in the world. There is a new found optimism from the international community on the use of carbon pricing as a means to combat climate change.

The Unprecedented Boom in the Worlds Largest Carbon Market

Simon H
-
0
The Unprecedented Boom in the Worlds Largest Carbon Market

Earlier this month, the EU’s benchmark carbon price topped 50 Euros for the first time, after hovering around 20 Euros before to the coronavirus outbreak.

This rally shows no signs of stopping according to analysts and traders and some expect it to reach over 100 Euros by year end.

The rally is fueled by the EU’s ambitious climate strategy and greater market financial investment. and warns of  “carbon leakage,” which occurs when businesses shift production (and emissions) elsewhere due to the relative cost of polluting in Europe.

Some at-risk industries have claimed that rising carbon prices will harm their efforts to invest in new technologies, delaying a much-needed industry shift away from fossil fuels. The airline, chemicals, steel and mining industries as being among those most at risk in the coming months.

EU Aluminum Groups Wants Exclusion from Carbon Border Tax

Simon H
-
0
EU Aluminum Groups Wants Exclusion from Carbon Border Tax

European aluminum manufacturers are pushing for their industry to be excluded from the pilot phase of the EU’s carbon border adjustment system.

European Aluminum – which represents smelters and manufacturers, said the tax plan will damage its members and consumers while hastening so-called “carbon leakage” which allows firms to relocate activities outside the EU to evade strict climate regulations.

They are arguing that the proposal will put them at a competitive disadvantage with overseas competitors while doing little to address climate change. The manufacturers believe that the Carbon Border Adjustment Mechanism (CBAM) will promote Chinese and Russian “resource shuffling”. This will allow manufacturers transfer their low-carbon output to Europe while selling their less environmentally friendly output elsewhere in the globe.

The CBAM is the centerpiece of the “Fit for 55” package, a levy meant to target imports from countries that have not committed to achieving carbon neutrality by the middle of this century while protecting domestic businesses that are not subject to the same stringent environmental requirements.

The carbon tax on imports is expected to earn about €10 billion per year in revenue. With steel, cement, fertilizers, and aluminum imports all be targeted in a three-year transitional period beginning in 2023.

The CBAM would replace existing mechanisms that attempt to limit carbon leakage under the EU’s emissions trading scheme for these items.

These are free emission permits and, more importantly for the aluminum sector, cash compensation for carbon-related power expenses.

Aluminum produces 6.7 tonnes of CO2 per tonne of metal on average and European aluminum smelters are paid for 75% of their indirect emissions with state aid. They are presently subject to a carbon fee, which is reflected in their power pricing.

Because of Europe’s marginal pricing structure for energy, which is often set by coal-fired power plants, even producers utilizing hydro and nuclear power have to pay.

According to producers, if the existing carbon compensation program is repealed, European smelters would face greater costs, and will put them at a competitive disadvantage to rivals in the rest of the globe. It would also encourage Chinese and Russian producers to simply divert their low-carbon output to Europe, avoiding any CBAM charge, while selling their other products elsewhere in the globe with no impact on their carbon footprint.

Rusal, the world’s largest aluminum producer outside of China, has previously announced intentions to divide its assets into a low-carbon firm aimed at the European market and a new entity geared at the Russian domestic market.

EU To Propose an Overhaul to its Carbon Market, this biggest change since 2005

Simon H
-
0
EU To Propose an Overhaul to its Carbon Market, this biggest change since 2005

This week, the European Union is expected to propose an unprecedented revamp of its carbon market, attempting for the first time to put a price on shipping emissions.

On July 14th, the European Commission, the EU’s executive arm, will present its “green fuel” rule for EU shipping. It is part of a larger reform package aimed at meeting the EU’s revised climate targets.

The EU has committed to reducing net carbon emissions by 55% (when compared to 1990 levels) through to 2030, becoming climate neutral by 2050.

The EU says this will require a 90% reduction in transport emissions over the next three decades.

To meet these aims, the EU intends to undergo the most extensive overhaul of its Emissions Trading System (ETS) since the policy’s inception in 2005. The ETS, which is now the world’s largest carbon trading scheme, is largely expected to expand to cover shipping for the first time.

This has the region’s shipowners worried and according to Lars Robert Pedersen, deputy secretary general of BIMCO, the world’s largest international maritime association, the industry is concerned about the EU’s ambitions.

He claimed that the plan was “not conducive” to international policy, that it would fail to cut regional carbon emissions, and that it would ultimately drain money from the shipping industry that could otherwise be spent on decreasing emissions in the fleet.

An alleged leaked plan for the first-ever rule forcing ships to gradually transition to sustainable marine fuels, surfaces last week.

The EU has stated that action to address EU international emissions from navigation and aviation is “urgently needed,” and attempts to address these issues will aim to increase the production and use of sustainable aviation and maritime fuels.

Pedersen cautioned against panicking over the leaked draught, stressing that it might be altered in the coming days and that there are many more barriers to clear before the proposals become EU policy.

The final revisions would first need to be negotiated by EU member states and the European Parliament, a process that analysts say might take two years.

Shipping, accounts for around 2.5% of worldwide greenhouse gas emissions, is seen as a particularly challenging industry to decarbonize because low-carbon fuels are not generally available at the scale required.

Furthermore, the shipping sector is not the only one that has spoken out against the EU’s proposals.

Industry experts are concerned as the leaked draught does not promote investment in low-carbon fuels like renewable hydrogen and ammonia. Instead, it claims that the proposal favours liquefied natural gas and “questionable” biofuels as alternatives to marine fuel oil.

The European Union’s Emissions Trading System (ETS) is the bloc’s primary mechanism for lowering greenhouse gas emissions that cause climate change. It requires high-polluting industries, ranging from aviation to mining, to purchase carbon credits in order to create a financial incentive for enterprises to pollute less.

However, one issue now plaguing the plan is so-called “carbon leakage,” in which corporations shift output (and emissions) elsewhere due to the relative expense of polluting in Europe.

The EU is intended to solve this issue, potentially introducing the carbon border adjustment mechanism as early as 2023. The strategy aims to level the playing field in terms of carbon emissions by imposing domestic carbon price on imports.

Shell Signs Contract For Carbon Neutral LNG with PetroChina

Simon H
-
0
Shell Signs Contract For Carbon Neutral LNG with PetroChina

Shell announced that it has signed a five-year contract with PetroChina to supply the Chinese company with carbon-neutral liquefied natural gas (LNG) cargos.

Many businesses, particularly those in the fossil fuel industry, are using carbon offsets to compensate for emissions that they are unable to reduce in their operations.

The two companies will “cooperate to offset life-cycle carbon dioxide equivalent (CO2e) emissions generated across the LNG value chain, using high-quality carbon credits from nature-based projects” for each cargo delivered under the agreement, according to Shell.

Offset projects based on nature, such as reforestation, protect, transform, or restore land, allowing nature to add oxygen and absorb carbon dioxide emissions.

Shell made the announcement as PetroChina received its first carbon-neutral LNG cargo at China’s Dalian port.

“This first term deal is an important step in scaling up the market for carbon-neutral LNG, and we are extremely grateful to our valued partner PetroChina for their collaboration in enabling this industry milestone,” said Steve Hill, Executive Vice President Shell Energy, in a press release.

Shell stated that the offsets would come from its own portfolio of emission-reduction projects in nature.

Many environmental groups are dubious of the use of carbon offsets, warning that the capacity to pay for emission reductions elsewhere may extend the use of fossil fuels, which are largely blamed for climate change.

The 2015 Paris Agreement on Climate Change intends to limit temperature rises to 1.5 degrees Celsius beyond pre-industrial levels, which scientists predict will necessitate transitioning the world into a net zero economy by 2050.

Russia Signs New Law Regulating CO2 Emissions

Simon H
-
0
Russia Signs New Law Regulating CO2 Emissions

President Vladimir Putin signed legislation in early July mandating the country’s top greenhouse-gas emitters (GHG) to submit carbon data to a new government agency.

This marks Russia’s first moves toward controlling carbon emissions since joining the Paris climate agreements in 2019.

According to the Russian news agency TASS, the new law requires carbon reporting beginning in January 2023 for firms generating 150,000 tonnes of carbon or more. This is set to decreased down to companies producing 50,000 to 150,000 tonnes by January 2025.

“An accounting system is being implemented, and carbon dioxide is becoming a regulated substance,” Greenpeace spokesperson Vladimir Chuprov told Reuters. “A system for accounting and reducing emissions is evolving. This is a need for a trading system for greenhouse-gas emissions.”

With such measures in place, Russia hopes to achieve its Paris Agreement commitment of reducing emissions to 70% of 1990 levels by 2030.

The new rule will, predictably, have the greatest impact on Russia’s oil and gas industry as Russia flares the most associated gas of any country on the planet.

gas flaring volumes 2016-2020 in billion cubic meters

After a 2012 World Bank research projected that flaring cost the economy $5 billion in yearly costs, Russia began to take the issue seriously.

According to Bloomberg, oil and gas exports will account for 40% of Russia’s national budget in 2021, and while European demand for oil declines, Russia is increasing investment in East Siberian production, such as Rosneft’s Vostok project, to serve Asia, where demand for oil continues to rise.

Russia’s target date of 2023 for starting GHG reporting coincides with the same year that the EU will implement the Carbon Border Adjustment Mechanism (CBAM), which The Bank of Russia estimates could cost Russia up to 8.2 billion Euros per year.

Source: https://jpt.spe.org/russia-to-require-carbon-reporting-under-new-climate-change-law

Carbon Credit Market to Reach $100 Billion a Year By 2050

Simon H
-
0
Carbon Credit Market to Reach $100 Billion a Year By 2050

The Institute of International Finance’s CEO believes voluntary carbon credits have great upside potential and projects the market may be worth up to $100 billion per year by 2050.

Governments and corporate leaders are under increasing pressure to deliver on pledges made as part of the historic Paris Agreement in advance of this year’s COP26, which will be hosted in Scotland, in early November.

The Taskforce on Scaling Voluntary Carbon Markets (TSVCM) released the second phase of its roadmap for developing a large-scale and transparent carbon credit trading market recently.

According to the TSVCM, it will enable more companies to put their net-zero promises into action by investing in emissions-reduction projects, where they believe it would have the greatest impact.

The private-sector-led project, established last year by former Bank of England governor Mark Carney, believes a broad-based carbon market is “essential” to limiting global temperature rise to 1.5 degrees Celsius above pre-industrial levels – the global aim outlined in the Paris Agreement.

Carbon credits are permits that allow a corporation to emit a specified quantity of greenhouse emissions. They are intended to provide a financial incentive for high-polluting businesses to reduce their pollution.

The voluntary carbon offset market is distinct from cap-and-trade programs such as Europe’s flagship Emissions Trading System (ETS), which has a finite carbon budget and allows emitters to sell allowances.

Companies in the voluntary market, on the other hand, are more likely to be attempting to reach internal targets to decrease their carbon footprint.

The TSVCM had previously stated that in order to fulfil the Paris climate objectives, the voluntary carbon market would need to increase 15-fold and might be valued up to $50 Billion by the end of the decade.

A Carbon Floor Proposal

Simon H
-
0
A Carbon Floor Proposal

Staff at the International Monetary Fund (IMF) have suggested a carbon-price floor to reduce global warming over the next decade, claiming that climate change poses significant threats to the world’s economies.

A report was issued earlier in June and is being discussed by the IMF executive board and members. The reports recommended varying minimum carbon-price levels for nations based on their stage of development as one possibility.

By using a 3-tier price floor ($25, $50, $75 per tonne) among United States, China, the European Union, India, the United Kingdom, and Canada. This could help cut global emissions by 23 % from baseline levels by 2030.

According to IMF officials, this would substantially improve the efficiency of the Paris Agreement aim of limiting temperature increases below 2 degrees Celsius.

The concept is similar to the argument over a minimum worldwide corporation tax rate.

By focusing on a small number of large emitters, this would make negotiations easier and could still cover a large percentage of global emissions, thereby taking a major step towards the cuts in greenhouse gases.

While a tax is one possibility for establishing the price floor, the IMF believes it may also be accomplished through regulation or carbon trading.

With Carbon trading, the proceeds may be used to compensate consumers for price increases as well as to assist firms and people in transitioning from high- to low-carbon activities.

According to IMF officials, the proposal would be more successful and less controversial than border-adjustment carbon taxes, which are charges on the carbon content of imports.

And if it is expanded out to cover the whole G20 nations (which emit 85% of global carbon-dioxide emissions), the proposal may stimulate a slight additional decrease in emissions, according to the IMF experts in the paper.

Original source: https://www.bnnbloomberg.ca/imf-staff-propose-carbon-price-floor-to-slow-climate-change-1.1618752

1...148149150Page 149 of 150