The Climate Log - Edition #1

1st September – 10th September 2024 | ? Read Online

?? Data BYTE: EVs Powering Ahead! ??

?? EVs now make up 20% of global auto sales! ?? Registrations soared by 22% in July 2024 compared to the previous year, with a total of 1.3 million new registrations. A noteworthy highlight: Plug-in Hybrids saw a 58% Year-on-Year (YoY) increase! ??

What are Plug-in Hybrid Electric Vehicles (PHEVs)?

• ?? PHEVs combine electric batteries to power a motor and a traditional internal combustion engine (ICE) fueled by diesel or gasoline.
• ?? Charging & Braking: PHEVs can charge their batteries through charging equipment and regenerative braking.
• ?? Bigger Battery Packs: Compared to traditional hybrids, PHEVs feature larger batteries, allowing for a greater electric-only range.
• ?? Up to 35% Lower Fuel Consumption: A standard PHEV uses up to 35% less fuel than a comparable ICE vehicle. ????

??GLOBAL PULSE

Kamala Harris vs Donald Trump: Where do they stand on Climate Change??Harris views climate change as an existential threat and advocates for urgent action, including significant investments in renewable energy and holding polluters accountable. Trump acknowledges human activity as one of the causes of climate change but not the dominant factor. He has often dismissed climate science and rolled back environmental protections during his presidency. Harris supports a blend of government action and market mechanisms to address climate change, while Trump has favoured reducing regulations and government intervention. Harris supports clean-energy tax credits and subsidies, particularly for electric vehicles, whereas Trump has criticized these policies, arguing they benefit the wealthy.

India at COP29 and the CBAM Dilemma:?Ahead of COP29 in Baku, Azerbaijan (November 2024), India is finalizing its strategy on climate finance and adaptation for developing nations, emphasizing financial support and technology transfer. The COP holds added significance due to the EU's Carbon Border Adjustment Mechanism (CBAM), starting January 1, 2026, which will impose a 25% carbon tax on energy-intensive imports like iron, steel, cement, aluminium, and fertilizers. Given that over 25% of India's exports in these sectors go to the EU, the CBAM could raise costs by 20-35%, potentially straining smaller companies. In response, India is considering retaliatory tariffs on EU exports to protect its economic interests.

Climate Change Costs Africa Up to 5% of GDP Annually: The World Meteorological Organization's State of the Climate in Africa 2023 report states that African countries are losing 2-5% of GDP due to climate extremes, with adaptation costs projected at $30-50 billion annually over the next decade. The report notes that 2023 was one of Africa's hottest years, with severe heatwaves, droughts, and floods causing significant damage. By 2030, up to 118 million extremely poor Africans could face severe climate events without adequate measures. Increased investment in meteorological services and early warning systems is crucial for mitigating risks and building resilience. Find the official report here .

India-Singapore Collaboration on Green Hydrogen and Green Ammonia: During his September 4-5, 2024, visit to Singapore, India's PM discussed bilateral cooperation with his Singaporean counterpart in six areas: sustainability, digitalisation, skills development, healthcare, advanced manufacturing, and connectivity. They highlighted collaboration on Green Hydrogen and Green Ammonia and commended each other’s food security and sustainable development efforts. Notably, a June 2024 Head of Terms agreement at the Indo-Pacific Economic Framework Clean Economy Investor Forum established a plan for a 200,000 metric tonne green ammonia plant by a Singaporean group in India, with exports to Japan.

India and UAE Strengthen Energy Ties with New LNG and Nuclear Agreements: Between September 9-10th , 2024, India and the UAE signed significant agreements on LNG supplies and nuclear cooperation during the Crown Prince’s visit to New Delhi. A long-term LNG supply deal was signed between ADNOC and IOCL for 1 million metric tonnes per annum. An MoU was signed between NPCIL and ENEC to facilitate cooperation in nuclear power plant operations and sourcing of nuclear goods and services. Other agreements included exploring additional crude storage opportunities and a production concession agreement for Abu Dhabi Onshore Block 1.

??SECTORAL INSIGHTS

?POWER & ENERGY

India’s Bold Move: LNG to Replace Diesel in Heavy Trucks: India plans to cut trucking industry pollution by converting a third of long-haul trucks from diesel to liquefied natural gas (LNG) and mandating that a third of new trucks run on LNG, according to the draft policy, dated September 2nd , 2024. This move aligns with India’s goal to increase the share of natural gas in the energy mix to 15% by 2030. Freight (HDV) vehicles contribute the most to India’s transport emissions. LNG emissions are about a quarter lower than those of diesel, helping to clean the air in one of the world’s most polluted nations. Measures to speed the transition could include incentives to convert vehicles, reducing some road tolls, and giving preference to LNG trucks for transport contracts. Find the draft policy document here .

Data Centers to Emit 2.5 Billion Tons of CO2 by 2030: Morgan Stanley in its recent report titled “Global Data Centers: Sizing & Solving for CO2” has suggested that data centres will generate around 2.5 billion tonnes of GHG emissions by 2030, driven by the rise of generative AI. Of this, about 60% of emissions will come from operational carbon (energy use), while 40% will be from embodied carbon (construction materials). According to the report forecast, emissions would be about one-third of the projected figure without the AI boom. It also emphasised the role of technologies like carbon capture, utilisation, and sequestration (CCUS) and carbon dioxide removal (CDR) with a potential market worth up to $45 Billion by 2030 as companies aim to meet climate goals.

Renewables vs. Coal – India’s Dilemma to Achieve the Paris Pact: Published on September 5th , 2024, BloombergNEF's ‘New Energy Outlook for India’ report indicated that India’s power sector emissions must peak by 2026 to align with the Paris Agreement, a challenging goal given its reliance on coal, which makes up about three-quarters of its electricity generation. To achieve Net Zero by 2050, India will need over $12 trillion in investment, a 34% increase from the baseline scenario. Without new policies, emissions could rise by 175% by 2030, breaching Paris Agreement targets. The report recommends investing in clean energy, electric vehicles, carbon capture, and green hydrogen, and suggests tripling solar and wind capacity to 494 GW by 2030. In a less ambitious scenario, coal use wouldn’t peak until 2038, keeping emissions high. Find the full report here .

??E-MOBILITY

India to Launch FAME III Scheme to Boost EV Sector: On September 4th , 2024, Union Minister of Heavy Industries, H.D. Kumaraswamy, while addressing an event organized by ASSOCHAM in New Delhi suggested that the third iteration of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme will be launched within two months to boost India’s EV ecosystem. He emphasised on the potential of EV sector in generating jobs and the need to focus on local manufacturing while also addressing the skill gap in the EV sector to create a future-ready workforce.

Government Stands Firm on High GST for Hybrids, Favors Electric Vehicles: On September 3rd , 2024, Amitabh Kant, India’s G20 Sherpa, speaking at an event hosted by Mercedes-Benz Research and Development India (MBRDI), affirmed Indian government's commitment to promoting zero-emission technologies by maintaining a tax differential favouring electric vehicles (5%) and hybrid vehicles (48%). He emphasized that this policy would remain in place to accelerate the adoption of electric mobility and hinted at plans for large tenders for electric buses to lower costs through economies of scale.

Delhi’s EV Policy Expiry Leads to Price Hike and Sales Dip:?The Delhi government has discontinued the road tax waiver on electric vehicles, a key incentive under its now-expired EV policy, which ended on August 31. As a result, EV sales have dropped sharply, and dealerships are facing rising inventory levels. The Delhi EV Policy was first introduced in August 2020 for a period of three years and was extended twice after its expiry on December 31st , 2023.

“Let India’s EV Industry Evolve Naturally to Prevent India becoming China’s EV Colony”: The Global Trade Research Initiative (GTRI) suggested that India let its electric vehicle (EV) sector grow organically without heavy incentives to reduce reliance on Chinese imports. India struggles with challenges like 80% of electricity from fossil fuels, frequent power cuts, and dependence on imported EV components. With high tariffs on Chinese imports by the US, EU, and Canada, China may shift production to ASEAN or India. GTRI recommends investing in advanced battery technologies, battery recycling, and clean energy for EV charging stations.

??? AIR QUALITY

Union Environment Minister Reviews Progress on National Clean Air Programme: On September 7, 2024, the Union Minister of Environment chaired the 4th Apex Committee meeting for the National Clean Air Programme (NCAP) in Jaipur, reviewing air quality plans at national, state, and city levels. Since 2019, Rs 19,612 crore has been allocated to 131 cities under NCAP, with Rs 11,211 crore disbursed. The programme aims to reduce PM10 levels by 40% or meet National Ambient Air Quality Standards (NAAQS) by 2025-26, focusing on reducing road dust, vehicular emissions, improving waste management, and increasing green spaces. In 2023-24, 18 cities met the NAAQS for PM10, 51 cities achieved a 20% reduction, and 21 cities met the 40% reduction target. Several cities were praised for their effective use of resources.

?? INDUSTRY

India’s Semiconductor Mission: New Unit to Produce 60 Lakh Chips Daily: The Union Cabinet approved the setting up a semiconductor unit in Sanand, Gujarat, with an investment of Rs 3,300 crore. The unit will produce nearly 60 lakh chips per day for various applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones. This project is part of the India Semiconductor Mission (ISM) and aims to develop a ‘Made in India’ chip for every piece of equipment. The construction of four semiconductor units is progressing rapidly, with a total investment of almost Rs 1.5 lakh crore, expected to create lakhs of direct and indirect jobs.

Union Minister Nitin Gadkari Urges GST Reduction on Flex-Fuel Cars: On September 2, 2024, Union Minister Nitin Gadkari urged state finance ministers at the India Bio-Energy & Tech Expo to reduce GST on flex-fuel vehicles to 12% to promote adoption and cut fossil fuel imports. Flex-fuel vehicles, which run on petrol mixed with ethanol or methanol, are seen as a key solution, with some models running on 100% ethanol. Minister Hardeep Singh Puri highlighted that ethanol blending in India has increased from 1.53% in 2014 to 15% in 2024, aiming for 20% by 2025. Both ministers emphasized the environmental and economic benefits of biofuels, including reduced CO2 emissions and lower fossil fuel dependence.

India’s Ethanol Push Transforms Corn Market Dynamics:?Due to rising demand for corn-based ethanol, India has shifted from being a top corn exporter to a net importer. Exports, normally 2-4 million metric tons annually, are expected to drop to 450,000 tons in 2024. Meanwhile, India will import a record 1 million tons, mainly from Myanmar and Ukraine. Higher corn prices are impacting local poultry producers, who are seeking duty-free corn imports and approval of genetically modified corn. This shift is affecting global supply chains, as traditional buyers of Indian corn turn to other sources.

India’s Roadmap to Green the Steel Sector : On September 10th , 2024, the Union Minister of Steel and Heavy Industries, H. D. Kumaraswamy, released the report ‘Greening the Steel Sector in India: Roadmap and Action Plan’ which outlines strategies for decarbonizing the steel sector. It focuses on current carbon sectoral footprint and the challenges in reducing emissions. Key strategies include energy efficiency, renewable energy, process transitions, and technologies like CCUS and green hydrogen. It highlights recent technological advancements and reviews existing policies while suggesting improvements. Find the official report here .

???CLIMATE RISKS, ECOLOGY, ENVIRONMENT AND PEOPLE

Heavy Rains Cause Chaos in Southern India and Pakistan:

At least 33 people have died in Andhra Pradesh and Telangana, India, due to heavy monsoon rains and floods. Over 4,000 people have been moved to relief camps. Vijaywada is experiencing its worst flooding in two decades, with the Budameru River flooding 40% of the city and stranding nearly 275,000 people. In Pakistan, heavy rains have killed five children recently, adding to a total of 300 deaths since July 13. The floods have damaged nearly 20,000 homes. Scientists and weather forecasters attribute the heavier rains to climate change, which has caused more severe monsoon seasons in recent years.

Improving Delhi’s Air Quality Could Add 7.8 Years to Residents’ Lives: Published on August 27, 2024, EPIC's Air Quality Life Index (AQLI) report revealed that Delhi residents could gain up to 7.8 years of life expectancy if PM 2.5 levels met WHO’s 5 μg/m3 guideline. Despite a 19% reduction in particulate pollution, all 1.4 billion people in India live in areas with pollution exceeding WHO standards. Particulate pollution currently reduces average life expectancy in India by 3.6 years, more than malnutrition or tobacco use. In the Northern Plains, the most polluted region, life expectancy could drop by 5.4 years, with the most polluted areas seeing an additional 2.7 years reduction compared to less polluted regions. Find the official document here .

Summer 2024 Shatters Temperature Records:?On August 30th , 2024, Copernicus, Europe’s climate change service, reported that the summer of 2024 was the hottest on record globally, with temperatures 0.69°C above the 1991-2020 average. This marks the second consecutive year of record-breaking heat, surpassing 2023's record by 0.03°C. The data confirms earlier signs after the hottest June on record, followed by the hottest single days in July. Extreme heat impacted both hemispheres, triggering deadly heatwaves, wildfires, and storms, with the lingering effects of El Ni?o contributing to the spike in temperatures. Scientists warn that without swift action to curb greenhouse gas emissions, extreme weather events will continue to intensify.

Coal Ministry Accelerates CSR Initiatives for Community Welfare: The Ministry of Coal reviewed the CSR activities of Coal Public Sector Undertakings (PSUs), focusing on healthcare, education, environment, skill development, and livelihood projects. Emphasis was placed on accelerating implementation and achieving measurable outcomes. Coal PSUs are planning contributions for World Patient Safety Day on September 17, 2024, through health camps, community outreach, and partnerships with local health organizations.

Challenges and Perceptions of Solar Energy in India - A Generational Perspective: Luminous Power Technologies' “Solar Spectrum of New India” survey (Feb-Mar 2024) of 4,318 respondents across metro and non-metro cities reveals that 50% of Gen Z, 46% of Millennials, and 40% of Gen X prefer solar solutions. Despite this, 97% of respondents lack solar rooftop systems. Baby boomers find solar solutions less accessible, while Millennials face fewer difficulties. 90% believe solar installation needs specialized skills, with a shortage of skilled labor. Additionally, 92% of Gen Z, Gen X, and Millennials view solar power as expensive compared to traditional energy sources.?Find the official report here .

Stay Informed, Stay Inspired ???

Thank you for reading this edition of The Climate Log. As we continue to navigate the evolving landscape of climate action, your curiosity and commitment ?? play a crucial role in driving change. Together, we can transform knowledge into action ?? and create a sustainable future for all.

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?? Until next time, let’s keep the conversation on climate moving forward. ????

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