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UK should cut GHG emissions by 81pc in 2035: CCC

  • Spanish Market: Emissions
  • 26/10/24

The UK independent advisory Climate Change Committee (CCC) has recommended that the UK commits to cut its territorial greenhouse gas (GHG) emissions by 81pc by 2035, from a 1990 baseline.

UK energy minister Ed Miliband in August sought the CCC's guidance on the country's next climate plan, or nationally determined contribution (NDC). Parties to the Paris climate agreement must submit NDCs, increasing in ambition over time, in five-year cycles.

The recommended 81pc GHG reduction is a "credible contribution towards limiting warming to 1.5°C", the CCC said. The Paris agreement seeks to limit warming to "well below" 2°C above pre-industrial levels, and preferably to 1.5°C.

The CCC's recommendation is "ambitious, deliverable, and consistent with the emissions reduction required to meet the UK's legally binding sixth carbon budget", the committee added. It also provides a "stepping stone" to the UK's legally-binding net zero by 2050 goal, the CCC noted.

"There's decades-long recognition that the transition to green energy and away from fossil fuels will be advantageous to the UK, both in terms of climate and economy", member of parliament and chair of the energy security and net zero committee Bill Esterson said.

The committee recommends that international aviation and shipping emissions are excluded from the "headline NDC target" — which is in line with UN climate body the UNFCCC. But the UK must work to reduce those emissions and push for progress on the topic at international fora, the CCC said.

The UK should use its position as "a global financial hub and finance leader" to make a case for reform of the global financial system, and to "drive the delivery of both public and private finance towards accelerating the transition", the committee found. It referenced the UK's "high historical responsibility for GHG emissions", but also pointed to the international climate leadership role that the current government has said it would take.

The 81pc reduction target is "achievable through actions that directly reduce" GHG emissions, so international carbon credits should not be used, the CCC said. It also called for a strengthened adaptation plan, which refers to adjustments made to protect against the effects of climate change where possible.

The CCC assesses progress made by the government towards its climate goals. It marked the previous administration down, finding it off track for 2030 targets and beyond.

The committee welcomed the actions taken by the new government in areas such as renewable power and energy efficiency, but called for "urgent action" to speed up the rollout of electric vehicles and heat pumps, among others.


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28/10/24

Greenhouse gases at new all-time high in 2023: WMO

Greenhouse gases at new all-time high in 2023: WMO

London, 28 October (Argus) — The concentration of greenhouses gases (GHGs) in the atmosphere reached its highest level on record last year, driven by human activity and vegetation fires, according to the World Meteorological Organisation (WMO). CO2 concentration hit 420ppm, recording a larger annual increase than the previous year and standing at 151pc above pre-industrial levels, according to the WMO's annual Greenhouse Gas Bulletin published today, which is designed to inform the UN's Cop climate conferences. "Stubbornly high" CO2 emissions from fossil-fuelled human activity combined with emissions from vegetation fires and a "possible" fall in CO2 absorption by forests to drive the increase, the WMO said. Methane concentration also stood at 265pc above pre-industrial levels in 2023 and nitrous oxide at 125pc above. The surge in GHG levels in the atmosphere is "committing the planet to rising temperatures for many years to come", the WMO warned, hindering attempts to meet the Paris climate agreement's goal to limit global warming to well below 2°C above pre-industrial levels and preferably to 1.5°C above. A report by the UN Environment Programme last week found that the world is set for a "catastrophic temperature rise" of up to 3.1°C above pre-industrial levels unless G20 countries act to cut all GHG emissions. "Another year. Another record. This should set alarm bells ringing among decision makers," WMO secretary-general Celeste Saulo said today. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Private sector needs countries to up climate ambitions


28/10/24
28/10/24

Private sector needs countries to up climate ambitions

Edinburgh, 28 October (Argus) — As developed nations look to rope in the private sector to the new finance goal at the UN Cop 29 climate summit, investors in turn are calling on governments to raise policy ambitions to unlock financial flows for the energy transition. Parties must agree at Cop 29 on the new collective quantified goal (NCQG). And developed nations are pushing to include private finance as part of a "multi-layered goal". Around $1.9 trillion/yr is invested in clean energy, but this needs to more than double by 2030 to reach net zero emissions by 2050, according to the IEA. The Institute of International Finance (IFF) says it is for governments to create the conditions to mobilise private capital. This was echoed in two open letters by more than 500 institutional investors — holding a combined $29 trillion in assets — and 100 chief executives, representing $4 trillion in revenues. They called on governments to upgrade their nationally determined contributions — climate plans — to provide "the transparency businesses need for investment". And they called for policies to be economy-wide and sectoral, with derisking mechanisms, and obstacles such as lengthy permitting processes for renewables removed. To ensure private finance flows into green industrial technologies, "governments need to do what has been done for renewables 20 years ago, that is prime the pump", pension fund CDPQ's head of sustainability Bertrand Millot says. "We are prepared to finance but we need a stable policy environment for that." In the US and the EU, the Inflation Reduction Act and REPowerEU have been critical in unlocking private flows — even though some investors find navigating EU regulation cumbersome. "It is not just about policies setting limits on carbon emissions or incentives, but an industrial policy that is designed to create good jobs," non-profit group Ceres' vice-president Kirsten Spalding says. Derisking business But some debt-laden developing economies lack the budget to implement these policies, and can be perceived as too risky. "That's where we have to have developed nations and multilateral development banks [MDBs] step up with blended finance," Macquarie Asset Management Group head Ben Way says. At least $1 trillion/yr of private capital will be needed in developing countries excluding China by 2030 to meet climate and development goals, according to the high-level expert group on climate finance mandated by the UN. MDBs have a crucial role to play to derisk investments and leverage private finance. The reform of global governance institutions is one of the priorities of Brazil's G20. But it is progressing too slowly. Although the World Bank and IMF have taken some steps, they still need to do much more, UN climate body UNFCCC chief Simon Stiell said ahead of the bank's annual meetings in Washington taking place this week. He also called for more honesty on the role of the private sector. One of the main barriers to scaling up private investments is making sure that public finance is being used effectively to derisk new areas, according to think-tank E3G's sustainable finance senior policy adviser Heather McKay. National transition planning and country platforms building on the Just Energy Transition Partnerships, whereby governments will strive to offer long-term policy clarity, could gain traction at G20 or Cop 29. This could help increase confidence, she says. Another obstacle is that a lot of projects in developing nations are not yet at the investment stage. MDBs can work with countries to unlock these and support investment in energy transition sectors, think-tank ODI managing director Hans Peter Lankes says. But institutional investors do not tend to invest in developing economies because of regulations, such as Basel III, and "long-standing habits", so there are huge gaps still to be bridged, he says. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

UK ramps up climate action under new leadership


28/10/24
28/10/24

UK ramps up climate action under new leadership

London, 28 October (Argus) — The UK's Labour government, elected in July, has taken the country's climate policy in a new direction, restoring pledges the previous administration scrapped and seeking to funnel investment to renewables. The UN Cop 29 climate summit presents an opportunity for it to follow this up on an international stage. Hosting Cop 26 in 2021 allowed the UK to burnish its climate leadership credentials, but subsequent changes in the Conservative government saw policy reversals. Labour sought to differentiate its position on climate during the election campaign — possibly noting an increase in support for the UK's Green and Liberal Democrat parties, both of which hold firm pro-environment stances. Labour promised to issue no new oil, gas or coal licences — although it said it would not revoke existing permits — and is aiming for zero-emissions power by 2030. Energy minister Ed Miliband in his first week in office lifted the de facto ban on onshore wind, and set up a taskforce to speed the country's path to a decarbonised power grid. The UK has in recent weeks pulled in around £24bn ($31bn) of investment for renewables, including from utilities Orsted and Iberdrola, and announced "up to" £21.7bn in funding over 25 years for carbon capture, use and storage (CCUS) — although it is unclear how the money will be deployed. The government moved swiftly to raise the windfall tax on oil and gas profits, lifting it to an effective rate of 78pc and scrapping one of the investment allowances — although the decarbonisation investment allowance remains in place. And, spurred by a landmark ruling made by the UK's Supreme Court in June, the government pledged new environmental guidance for oil and gas fields by spring 2025. The judgment ruled that consent for an oil development was unlawful, as the Scope 3 emissions — those from burning the oil produced — were not considered. The government has in the meantime halted assessment of any environmental statements for oil and gas extraction, including those already being processed, until the new guidance is in place. The Labour government has declined to defend in court decisions taken by various iterations of the Conservative administration, including the permission granted for a proposed coal mine in northwest England. The High Court quashed that planning permission in September. International stage Miliband has sought guidance from independent advisory the Climate Change Committee (CCC) on the country's new climate plan, known as a nationally determined contribution (NDC). The CCC assessed the previous government as off track to hit legally binding emissions-reduction targets. The UK has cut emissions by half since 1990 and is in line with all carbon budgets to date. But much of this progress was made from a baseline of a high rate of coal-fired power generation, all of which is now shut down. The next stage of the country's decarbonisation will be more fragmented and is likely to pose more of a challenge. The UK has bucked the trend set by some European neighbours by shifting further left with Labour, although the new government has promoted fiscal caution. Climate finance will dominate the talks in Azerbaijan, and the UK has been clear it will continue to contribute. Labour pledged in its manifesto to "return to the forefront of climate action", noting that the previous administration had "squandered [the UK's] climate leadership". Foreign minister David Lammy has embedded climate and nature issues into his foreign policy brief and the government has appointed special representatives for climate and nature. But Cop 29 will prove the first real test of the pledges made, with a global audience watching. UK greenhouse gas emissions Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

UN's GCF approves more than $1bn for climate projects


25/10/24
25/10/24

UN's GCF approves more than $1bn for climate projects

London, 25 October (Argus) — The UN-led Green Climate Fund (GCF) approved a raft of climate-related projects this week, allocating $1.01bn of its funding across developing countries. The 16 projects approved will channel funds to 37 developing countries and include adaptation and mitigation projects. Adaptation refers to adjusting to the effects of climate change where possible, while mitigation relates to cutting emissions. The process for two of the projects, in Burundi and Somalia, was sped up, moving from approval to first disbursement in one day, the fund said. The GCF has committed $2.5bn to 44 projects this year, covering 133 countries. Its total investments have now reached $16bn across 286 projects, with an expected co-financing total of $61.5bn. The fund operates under the financial mechanism of UN climate body the UNFCCC. It is the world's largest climate fund and was originally capitalised with $10.3bn in 2015. The fund's first replenishment, in 2019, gathered a further $10bn in pledges and its second replenishment reached $12.8bn after funding commitments were made at Cop 28 in December last year. Climate finance is set to dominate the UN Cop 29 climate summit this year. Discussions of the topic are often fraught and can hold up negotiations in other areas. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

World on track for ‘catastrophic’ temperature rise: UN


24/10/24
24/10/24

World on track for ‘catastrophic’ temperature rise: UN

London, 24 October (Argus) — The world is set for a "catastrophic temperature rise" of up to 3.1°C above pre-industrial levels, unless there is a "G20-led massive global mobilisation to cut all greenhouse gas (GHG) emissions", the UN Environment Programme (Unep) said today in its Emissions Gap 2024 report. It is still "technically possible" for the world to meet the 1.5°C temperature goal set out in the Paris climate agreement, but only with significant effort, the report found. If current commitments for 2030 are met, temperature rise would be limited to 2.6°C-2.8°C above pre-industrial levels. The Paris agreement seeks to limit warming to "well below" 2°C and preferably to 1.5°C. The 2.6°C scenario is based on the "full implementation" of countries' current national climate plans, known as nationally determined contributions (NDCs). But "continuing with current policies only would lead to 3.1°C of warming", Unep said. Countries are due to submit updated NDCs, which would cover a timeframe up to 2035, by February next year. And they "must collectively commit to cut 42pc off annual GHG emissions by 2030 and 57pc by 2035… and back this up with rapid action" in the next round, or the 1.5°C goal "will be gone within a few years", Unep said. The emissions cuts needed are relative to 2019 levels, but GHG emissions reached a record high of 57.1bn t/CO2 equivalent (CO2e) in 2023. To get on track to keep global warming below 2°C, GHG emissions must fall by 28pc by 2030 and 37pc by 2035, both from a 2019 baseline, the report found. The global average temperature for the 12 months from October 2023 to September stood at around 1.62°C above the pre-industrial average, according to EU earth-monitoring service Copernicus. It is "almost certain that 2024 is going to be the warmest year on record", Copernicus added. Invest and implement To ensure that warming is limited to below 2°C by 2030, annual emissions should be 14bn t/CO2e lower than the rate implied by current unconditional NDCs. This refers to elements of the plan that a country pledges to carry out with no external support, whether technical or financial. To hit the target of limiting warming to 1.5°C, annual emissions should be 22bn t/CO2e lower than current unconditional NDCs suggest over the same timeframe. There is "technical potential" for GHG emissions cuts of up to 31bn t/CO2e and 41bn t/CO2e in 2030 and 2035, respectively, the report found. This would "bridge the gap to 1.5°C in both years", and cost less than $200/t of CO2e, it added. Increased deployment of solar and wind power could provide 27pc of the total GHG reduction potential in 2030 and 38pc in 2035, Unep said. And "action on forests" — which are key carbon sinks — could deliver around a fifth of the potential in both timeframes, it added. Electrification and efficiency measures in the transport, buildings and industry sectors would also cut GHG emissions. But a "minimum six-fold increase in mitigation investment" is needed for the world to reach net zero emissions, the report found. The estimated incremental investment is between $900bn and $2.1 trillion annually over 2021-50. This would "bring returns in avoided costs from climate change, air pollution, damage to nature and human health impacts", Unep said. Members of the G20 group of countries, which are responsible for the majority of global emissions, are off track to meet their current goals and must "take the lead by dramatically increasing action and ambition" in new NDCs, Unep said. G20 members, without the recent addition of the African Union as a permanent member, accounted for 77pc of emissions in 2023. The outlook has worsened since last year's Emissions Gap report, which flagged a temperature rise of 2.5°C-2.9°C. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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