Chile spearheads green hydrogen strategy

Spanish Market: Emissions, Fertilizers, Hydrogen, Oil products
14/10/20

Chile has launched a long-term green hydrogen strategy as a way to exploit surplus renewable energy capacity, diversify its export-oriented economy and meet its emissions goals.

By 2050, the country could produce 25mn t/yr of green hydrogen, and earn $30bn/yr from liquefied exports, capturing 50pc of the Japanese and South Korean markets and 20pc of the Chinese market, according to a McKinsey consultancy study cited by energy minister Juan Carlos Jobet in a presentation today.

Chile's projected 2030 production would represent 5pc of global green hydrogen market.

Although Chile's exports would have higher logistical costs because of market distance, they would be among the world's least expensive because of lower production costs, Jobet said.

He cited more than 20 pilot projects already on the drawing board in Chile, including a green methanol and gasoline initiative based on a 30MW wind farm in far-south Magallanes, with Chile's AME, Italy's Enel Green Power, Germany's Siemens and Porche. The project would be built at state-owned oil company Enap's Cabo Negro installations.

France's Engie and Chilean explosives manufacturer Enaex are working on a green ammonia pilot project in the northern Antofagasta region, based on 1GW of solar, to launch in 2024.

Chile generated 44pc of its electricity from renewable sources in 2019, a level projected to reach 70pc in 2030.

"We have 70 times more renewable energy generating capacity than we currently consume, so we have to find ways to take advantage of that potential, not only to improve our quality of life, but also to export this to the world, to generate income and contribute to the goal of carbon neutrality," Jobet said.

Chile currently boasts $28.6bn in renewable energy projects, with 49pc under construction and 51pc awaiting environmental permits. Solar accounts for 49pc of the total, followed by wind with 18pc.

Jobet noted the potential for hydrogen marine fuel, which would help to reduce overall emissions associated with the country's copper exports. Diesel used at Chile's copper mines would be replaced with hydrogen as well.

Jobet was careful to distinguish the hydrogen potential from lithium, of which Chile is a leading producer. Lithium batteries are heavy but they provide an energy burst, while hydrogen-based energy is more akin to a marathon, he said.

By Patricia Garip

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19/11/24

Cop: Singapore, Zambia ink Article 6 carbon credit deal

Baku, 19 November (Argus) — Singapore and Zambia today signed an agreement at the UN Cop 29 summit in Baku, Azerbaijan to collaborate on carbon credits aligned with Article 6.2 of the Paris Agreement. The countries will collaborate on a legally binding implementation agreement on carbon credits, which will include criteria and procedures for transfer under Article 6 of the Paris Agreement. Article 6 of the Paris accord aims to help set rules on global carbon trade. And within it, Article 6.2 allows countries' governments to form bilateral agreements for carbon mitigation projects, the outcomes of which can be traded to contribute towards climate pledges. Mitigation refers to efforts to reduce greenhouse gas emissions causing global warming. The agreement between Singapore and Zambia is also aimed at facilitating knowledge exchange on carbon credit mechanisms. The countries will jointly identify mutually beneficial carbon credit projects and develop the necessary infrastructure to enable these projects. Singapore has entered into multiple carbon credit deals with other countries , but it has only signed implementation agreements with Ghana and Papua New Guinea . Carbon credits are an "innovative source of finance," said Singapore's minister of sustainability and environment Grace Fu today at the summit. "We are working with partners to develop a well-functioning and credible carbon market, including through the co-facilitation of the Paris Agreement Article 6 negotiations, and building a pipeline of high-quality, high integrity credits," she said. Singapore's National Climate Change Secretariat and the world's largest independent carbon credit registries Verra and Gold Standard last week released initial recommendations outlining the development of a carbon crediting protocol to implement Article 6.2. The recommendations are aimed at helping countries to use Article 6 to achieve their UN climate pledges and sustainable development goals, and provides recommendations on how governments can facilitate an effective Article 6.2 market. If such a framework is not established, "countries could take divergent approaches, which could hinder the implementation, scaling and integrity of co-operation under Article 6.2," said Verra. The protocol will be further developed and published once Cop 29 is concluded, said Verra. It will incorporate decisions from Cop 29 and will be implemented in 2025. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Lula urges rich nations to up climate ambitions

19/11/24

Lula urges rich nations to up climate ambitions

Rio de Janeiro, 19 November (Argus) — Brazil's president Luiz Inacio Lula da Silva today said developed nations must boost their climate efforts by presenting more ambitious targets for carbon neutrality. "I propose that the G20's developed nations bring forward their carbon neutrality target from 2050 to 2040 or 2045," Lula said in a speech on the second day of the G20 summit in Rio de Janeiro. "Without recognizing their historical responsibilities, rich nations will have no credibility to demand ambitious [actions] from other countries," he said. The G20 is responsible for 80pc of the world's greenhouse gas emissions. The Brazilian president also called on developing nations to present nationally determined contributions (NDCs) that cover all aspects of the economy. Brazil presented its new NDC at the UN Cop 29 climate summit in Baku last week, which aims to reduce 2035 emissions by 59-67pc from 2005 levels. Under the terms of the 2015 Paris Agreement, all signatory countries must present updated NDCs by next January. Lula also touted Brazil's deforestation efforts , saying that the country decreased those by 45pc in the last two years. He reaffirmed his pledge to end deforestation in the country by 2030. Energy transition was one of Brazil's three goals for its G20 presidency this year. The topic and climate change gained a more prominent spotlight in discussions once conversations on climate finance goals stalled at Cop 29. Developing nations will need at least $2.4 trillion/yr to adapt to climate change, accelerate carbon emissions mitigation and deal with climate disasters, the Interamerican Development Bank's climate change advisor Avinash Persaud said. As part of its G20 presidency, Brazil set up a disaster reduction group and a task-force to mobilize nations against climate change. The final G20 declaration includes 25 points on climate sustainable development, energy transition and climate action. Those include reaffirming support for Paris Agreement climate goals , the need for urgent action to "scale up and prioritize" economic adaptation to climate change, working towards facilitating low-cost financing for developing nations to transition to low carbon emissions and a reiterated commitment to boost efforts to phase out and rationalize fossil fuel subsidies. Brazil will look to continue its role as a leader of energy transition next year, when it will host Cop 30 in Belem, near the mouth of the Amazon River. By Constance Malleret and Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Countries join fossil fuel subsidy phase-out group

19/11/24

Cop: Countries join fossil fuel subsidy phase-out group

Baku, 19 November (Argus) — Colombia, New Zealand and the UK today joined a Netherlands-led international coalition focused on phasing out incentives and subsidies for fossil fuels. They made the announcement at the UN Cop 29 climate summit in Baku, Azerbaijan. The coalition was first formed at Cop 28 in December last year. Member countries that sign up to the coalition commit to publish an inventory of their fossil fuel subsidies a year after joining, and to develop a plan to phase them out. Countries agreed at Cop 26, in 2021, to phase out inefficient fossil fuel subsidies, and reaffirmed this a year later at Cop 27. G20 members first pledged in 2009 to do the same. But global fossil fuel consumption subsidies hit over $1.2 trillion in 2022 and more than $600bn in 2023, IEA data show. "We truly feel that this is something we should tackle at a European level as well", EU energy commissioner Wopke Hoekstra said today. "This is something the next Commission will push; this is something I will personally push", he added. New Dutch climate and green growth minister Sophie Hermans admitted that phasing out fossil fuel subsidies is a "sensitive topic", but that the country is working on a plan. The first step is to make transparent which fossil fuels subsidies are in countries' systems, she said. The coalition now has 16 members — Austria, Antigua and Barbuda, Belgium, Canada, Costa Rica, Denmark, Finland, France, Ireland, Luxembourg, the Netherlands, Spain and Switzerland, as well as the three countries that joined today. Four members have made their national inventory of fossil fuel subsidies transparent — Belgium, France, Ireland and the Netherlands. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Norway spending $740mn on Paris carbon credits

19/11/24

Cop: Norway spending $740mn on Paris carbon credits

Baku, 19 November (Argus) — Norway on Tuesday launched a new initiative to buy carbon credits from developing nations under the Paris climate agreement, which will help it meet its emissions goals while financing decarbonization in other countries. The Norwegian Global Emission Reduction Initiative, with initial funding of $740mn, will use Article 6.2 agreements — bilateral agreements on carbon mitigation projects — to support emissions mitigation actions in developing countries. This is in turn will generate Paris agreement carbon credits known as internationally transferred mitigation outcomes (Itmos). Norway can use the Itmos toward its Paris emissions targets. In addition, the country believes its use of the agreements will help close the financing gap for emissions reductions in developing countries. "By working together, we can raise our collective climate ambition and increase the speed of green growth", Norwegian environment minister Tore Sandvik said at the programme's launch at the UN Cop 29 climate talks in Baku, Azerbaijan. The first agreements under the initiative are with Benin, Jordan, Senegal and Zambia. Zambian officials said the country will use the money it receives to support a plan it launched earlier this year to build more renewables such as wind and solar, lessening its dependence on hydropower, which accounts for more than 80pc of its electricity generation. "Our anticipation for Article 6 is that it will be concluded and operationalised at this Cop 29 so that it becomes part of our core financing for grid connected renewable power generation", said Douty Chibamba, permanent secretary of the country's ministry of green economy and environment. Article 6 of the Paris accord aims to help set rules on global carbon trade. A number of final issues for implementing Articles 6.2 and 6.4 still need to be finalised in Baku, but countries are allowed already to enter into bilateral agreements. Zambia signed one with Sweden in August . Norway said the credits will help support its goal of becoming carbon neutral by 2030. The credits could also be used to cover any shortfall in the country's nationally determined contribution (NDC), or emissions reduction pledge, under the Paris Agreement in the event the EU does not meet its 55pc by 2030 reduction target. Norway is not a member of EU but is counting on cooperation between the two to achieve its NDC. Under Article 6.2 of the Paris agreement, an exported Itmo can no longer be put towards the project host country's NDC. Sandvik said the program will set strict requirements to ensure the integrity of projects "and includes strong safeguards against corruption and human rights violations." Funding for the program could increase beyond $740mn as early as next year, if Norway's parliament agrees to the government's budget request. Norway also pledged up to $100mn to a fund in collaboration with the Global Green Growth Institute (GGGI) that will help the country develop programs and manage payments when emissions reductions are achieved. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

G20 mayors call for $800bn/yr to address climate change

19/11/24

G20 mayors call for $800bn/yr to address climate change

Rio de Janeiro, 19 November (Argus) — Mayors from G20 countries are asking for at least $800bn/yr in investments by 2030 to tackle the effects of climate change. "We need better and faster access to international financing to ensure infrastructure that supports the socioeconomic security of our communities," Rio de Janeiro's mayor Eduardo Paes said. The joint statement from nearly 60 mayors and urban leaders was drafted during the Urban20, a G20 forum that includes leaders from major cities worldwide, and was delivered to Brazilian president Luiz Inacio Lula da Silva. The statement will also be delivered to other G20 members during the ongoing G20 summit in Rio de Janeiro. Climate change is one of the main topics being debated at the G20 summit. Brazil, which holds the G20 presidency this year, has set the energy transition as one of its goals for the year. The group reaffirmed its support for the Paris Agreement climate goals , saying it "fully subscribes" to the Cop 28 deal struck last year, which included language on transitioning away from fossil fuels. Urban investments such as low-emission transport, clean energy, and climate-resilient infrastructure can "significantly reduce emissions" and boost economic growth, according to the statement. The funding could unlock around $23.9 trillion in returns by 2050, it said. The $800bn/yr would cover around 20pc of urban climate finance needs and "serve as a catalyst for additional private sector funding," according to the Global Covenant of Mayors for Climate and Energy, a non-government organization for climate leadership that comprises over 13,000 cities worldwide. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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