Additional global investments of as much as $10 trillion : climate change
A recent estimation shows that additional global investments of as much as $10 trillion are needed to stave off the impacts of climate change. Radically transforming our energy system will require investments to be scaled up to finance the shift from fossil fuels to renewables as well as for smart electricity networks, energy efficiency measures, and electrification in sectors like transport, buildings, and industry.
Emissions of CO2 will reach record levels within two years and continue to increase from there, according to IEA. To address the mounting challenges from climate change brought on by elevated atmospheric levels of greenhouse gases, as much as 10% of annual global GDP is needed.
Post-coronavirus economic recovery plans represents only 35% of the amount of investment that the Paris-based IEA sees as necessary for the world to remain on track for net-zero emissions by 2050.
The world’s largest polluters are also among the biggest backers of the energy transition.But without a global climate policy, today’s smaller emitters will become major emitters as their populations and incomes grow. These are also the countries, often harder hit by the effects of climate change, for which the transition costs are more difficult to bear, due to fast-growing energy needs and less budgetary space to finance green investments.
Emerging and developing economies are only spending 20%, while advanced economies are allocating 60% of the necessary investment to reach net zero.
No coherent plan exists to realise a net-zero carbon economy, instead its more of merely adopting a collection of strategies and announcements that get postponed due to the expected difficulties.
Significant gas reserves exists, but a lack of infrastructure means that around 70% of the gas produced is flared - help to curb flaring raises the potential to use the gas for fuel instead.
Blue hydrogen can deliver results on emissions sooner, and may potentially enable a transition from existing gas-based trade.
Blue hydrogen is recently described as an important "bridging technology." Hydrogen strategies involves installation of electrolyser capacity, powered by wind turbines, to produce green hydrogen offshore.The hydrogen may then be supplied onshore via pipelines. more
Emissions of CO2 will reach record levels within two years and continue to increase from there, according to IEA. To address the mounting challenges from climate change brought on by elevated atmospheric levels of greenhouse gases, as much as 10% of annual global GDP is needed.
Post-coronavirus economic recovery plans represents only 35% of the amount of investment that the Paris-based IEA sees as necessary for the world to remain on track for net-zero emissions by 2050.
The world’s largest polluters are also among the biggest backers of the energy transition.But without a global climate policy, today’s smaller emitters will become major emitters as their populations and incomes grow. These are also the countries, often harder hit by the effects of climate change, for which the transition costs are more difficult to bear, due to fast-growing energy needs and less budgetary space to finance green investments.
Emerging and developing economies are only spending 20%, while advanced economies are allocating 60% of the necessary investment to reach net zero.
No coherent plan exists to realise a net-zero carbon economy, instead its more of merely adopting a collection of strategies and announcements that get postponed due to the expected difficulties.
Significant gas reserves exists, but a lack of infrastructure means that around 70% of the gas produced is flared - help to curb flaring raises the potential to use the gas for fuel instead.
Blue hydrogen can deliver results on emissions sooner, and may potentially enable a transition from existing gas-based trade.
Blue hydrogen is recently described as an important "bridging technology." Hydrogen strategies involves installation of electrolyser capacity, powered by wind turbines, to produce green hydrogen offshore.The hydrogen may then be supplied onshore via pipelines. more
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Power generation costs are increasing (ET Bureau, Oct 20, 2024). Therefore India is considering halting the installation of new flue gas desulphurisation (FGD) units at public sector coal-based power plants as a study by CSIR-NEERI found sulphur dioxide(SO2) emissions from these plants do not significantly impact ambient air quality. The move apparently aims to manage power generation costs. The cost of FGD has surged from Rs 35 lakh to Rs 1 crore per MW in the last eight years.This amounts to an additional charge of 0.50 paise per unit of electricity if the technology is installed in power plants. The current major issue is cost. If a coal-fired plant of 250 MW is going to invest around Rs 250 crore, they also look for returns, which is absent from the government's plan. India’s domestic FGD technology manufacturing capacity is too low. It is around 10% of the total requirement. India’s public undertaking BHEL manufacturing costs of FGDs come around Rs 1-1.2 crore per MW. The cost economics of FGD installation in TPPs(thermal power plants) depends on various factors including plant size and the chosen technology. Out of the two wet and dry FGD technologies, wet scrubbers have SO2 removal efficiencies of more than 90 per cent while FGD systems based of dry scrubbing have removal efficiencies of around 80 per cent. FGD systems are financed in a 75:25 debt-equity ratio. However, banks are reluctant to extend financing to TPPs given the current uncertain economic climate, the rise of renewables, their declining costs, and the huge portfolio of non-performing assets originating, to a significant extent, from power sector lending. Therefore, power generation companies are finding it difficult to secure funding for these projects. Coal fired power plants face choices - to run with domestic coal or with imported coal. With declining share of coal in electricity generation on global scale, imported coal may come somewhat cheaper and may contain high sulphur content than domestic ones. more
Oct 23
Britain's last coal-fired power plant shuts down. Britain’s transition to a low-carbon future has reached a milestone with the closure of its last remaining coal-fired power plant at Ratcliffe-on-Soar in Nottinghamshire. At the start of the 20th century almost 100% of Britain’s electricity was generated by coal plants. By 1950, its dominance remained largely unchallenged at 96%, and in the late 1960s and 1970s Britain’s state-owned Central Electricity Generating Board ushered in a new generation of super coal plants. By the 1990s, Britain’s (i)dash for gas power and (ii)rising environmental concerns spelled the beginning of a long existential decline for coal. Coal plants became increasingly expensive to run owing to regulations that called for costly upgrades to help reduce pollution.By 2020, coal power had dwindled to just 1.8% of the UK’s electricity mix, and in 2021 the government brought forward the ban to October 2024. Now Britain has a world-class facility with world-class service - `Grain LNG' - it is the Britain’s leading gateway connecting global LNG to the European energy market via cost effective, flexible and secure capacity. Grain LNG is the gateway connecting worldwide LNG to the European energy market, making a genuine difference to people's lives. Grain LNG is at the forefront of energy as Britain moves towards net zero. more
Oct 16
https://www.dailypioneer.com/2024/columnists/mobilising-climate-finance-in-india--uncovering-alternative-routes.html without a global climate policy, today’s smaller emitters will become major emitters as their populations and incomes grow. These are also the countries often harder hit by the effects of climate change, for which the transition costs are more difficult to bear, due to fast-growing energy needs and less less budgetary space to finance green investments - India has held the Global North accountable - not just as the voice of the Global South but owing to its vulnerability. Understanding India’s Stance around 619 million persons in India bore the brunt of climate change-induced extreme heat between June 16 and June 24. This is more than any other country in the world. These incidents are not just environmental, but also economic and health-related. Cities grind to a halt under the force of extreme weather, leaving economic scars and jeopardising the marginalised. more
Oct 07
To address climate change effectively, significant additional global investments are crucial. An estimated $10 trillion in extra funding could support sustainable technologies, infrastructure improvements, and mitigation strategies, helping to reduce greenhouse gas emissions and adapt to climate impacts. This investment is essential for transitioning to a more resilient and sustainable global economy. more
Aug 19
