The Climate Log - Edition #4

26th September – 2nd October 2024

??? TOP PICKS

?? China’s Grip on Critical Minerals: A Global Supply Chain Challenge?

?? Fragmented Environmental Laws Insufficient, Says Former SC Judge

? India to End Fossil Fuel Dominance in Power Generation by 2030, Says RBI

?? Delhi Government Introduces Tax Rebates for Scrapping Old Vehicles

?? Warming climate and India’s push for tougher seed varieties

??? Climate Change Disrupts Education in India

?? DATA BYTE

?? GLOBAL PULSE

Global Climate Leaders Demand Action, Accused of Falling Short Themselves: At the United Nations, the trio of current and next two presidents of UN climate conferences asked top climate negotiators for more ambitious climate targets, urging nations to align their plans with the 2015 Paris Agreement goal of limiting global warming to 1.5°C. However, outside groups and vulnerable nations criticize these leaders for not reducing their own fossil fuel consumption. The negotiators from the UAE, Azerbaijan, and Brazil are pushing for new national targets by February, but their own countries continue to invest heavily in oil and gas. This discrepancy underscores the ongoing challenge of achieving global climate goals.

China’s Grip on Critical Minerals: A Global Supply Chain Challenge?: China has established a dominant position in the critical minerals market, which includes essential materials like lithium, cobalt, and rare earth elements. These minerals are crucial for the production of batteries, electronics, and renewable energy technologies. China’s control over these minerals has created vulnerabilities in global supply chains, especially for countries and industries dependent on these resources.

This dominance has led to concerns about supply security and geopolitical tensions. China’s strategic investments and policies have enabled it to secure a leading role in the extraction, processing, and export of critical minerals. This includes significant investments in mining operations both domestically and internationally. In response to China’s market control, other countries are exploring ways to diversify their supply sources and reduce dependency. This includes investing in alternative mining projects and developing recycling technologies to reclaim critical minerals from used products.?

Fragmented Environmental Laws Insufficient, Says Former SC Judge: On September 27th, 2024, speaking at an event in Delhi, retired Supreme Court judge Justice Hima Kohli called for a comprehensive national climate law in India, highlighting the inadequacy of the current fragmented environmental legislations. Speaking at the event “Climate Liability, Justice, and Jurisprudence,” she emphasized the need for laws that address climate adaptation, mitigation, and accountability while prioritizing vulnerable populations. Justice Kohli also referenced the landmark M K Ranjit Sinh case, which recognized the right against adverse effects of climate change as a fundamental right, paving the way for stronger environmental laws.?

EU Revises Hydrogen Auction Rules to Curb Chinese Influence: The European Union has revised its hydrogen project auction rules to reduce reliance on Chinese suppliers. The new regulations, effective from the next auction on December 3, 2024, limit the use of Chinese-made parts to no more than 25% of a project’s production capacity. This move aims to bolster the EU’s energy security and reduce dependency on China, which currently dominates the global market for renewable energy components. The changes are part of a broader strategy to strengthen the EU’s industrial base and align with the Net-Zero Industry Act

Growing Pushback against EU’s Deforestation Law: The European Union’s new deforestation regulation (EUDR), which is set to take effect in December 2024 is seeing a growing pushback from countries, businesses and trade unions as they argue that it could discriminate against countries with forest resources, negatively impacting their exports and small farmers. They also express concerns about potential trade barriers and disruptions to supply chains. On the other hand, supporters believe the EUDR will significantly help reduce global deforestation, which is a major source of carbon emissions. The regulation aims to combat global deforestation by banning the sale of forest-derived products within the EU unless companies can prove their goods are not linked to deforestation. The regulation covers a wide range of products, including cocoa, coffee, soy, cattle, palm oil, rubber, and wood.

Britain’s Final Coal Plant Shuts Down: Britain is set to become the first G7 country to end coal-fired power production with the closure of its last coal power plant, Uniper’s Ratcliffe-on-Soar, on September 30, 2024. This marks the end of over 140 years of coal power in the country. The closure is part of the UK’s broader strategy to combat climate change and achieve net-zero greenhouse gas emissions by 2050. The move is significant as coal is considered the most damaging fossil fuel for the environment, releasing more carbon dioxide than oil or gas. The UK has significantly reduced its reliance on coal, which accounted for almost 30% of its electricity in 2015 but fell to just over 1% last year. The phaseout was built on four main elements - availability of alternative electricity sources, ending the construction of new coal capacity, pricing externalities like air pollution and CO2 emissions, setting a clear phaseout timeline a decade in advance.

Moscow Proposes Alternative Climate Strategy Centered on Gas and Nuclear: Russia is positioning itself against the West’s climate agenda by promoting natural gas and nuclear power as key components of its energy strategy. Deputy Energy Minister Pavel Sorokin announced that Russia will pursue its own climate goals and propose alternatives to Western strategies at the upcoming COP29 U.N. climate summit in Azerbaijan. Sorokin emphasized the potential of energy efficiency and the use of cleaner resources like gas, nuclear, and hydropower to reduce emissions without compromising development. This stance highlights the ongoing geopolitical tensions and differing approaches to tackling climate change.?

??SECTORAL INSIGHTS

?POWER & ENERGY

India to End Fossil Fuel Dominance in Power Generation by 2030, Says RBI: On September 20th, 2024, the Reserve Bank of India (RBI) in its bulletin titled “State of the Economy” highlighted that the dominance of fossil fuels in electricity generation in India will end by 2030. Renewable energy is expected to surpass 50% of the global electricity generation share by the end of this decade. The report highlights the accelerated pace of clean technology deployment and capital investment in recent years. It also emphasizes the need for substantial investment in low-carbon energy, suggesting that for every dollar invested in fossil fuels, three dollars should be allocated to renewables. Achieving a fully decarbonized global energy system by 2050 is projected to cost $215 trillion. Find the bulletin here.?

India’s Energy Future: The Long Road Away from Coal: International Energy Agency (IEA) believes that despite global calls for a coal-free energy system by 2040, coal will remain a significant part of India’s energy mix for the next few decades due to its substantial energy needs. While the UK has closed its last coal power plant, becoming the first G7 nation to do so, India’s coal consumption has increased. In 2023-24, coal-fired power generation in India rose to 75% from 71% in 2019-20. India is focusing on a long-term energy transition. Experts suggest that while coal will not disappear soon, India must reduce harmful emissions by deploying advanced air pollution control technologies and improving efficiency. The International Energy Agency (IEA) recommends that developed countries phase out unabated coal by 2030, while developing countries like India should aim for 2040 to stay on track for global net-zero emissions by 2050.?

??E-MOBILITY

Green Tribunal Seeks Government Response to Implement Emissions Star Rating for Cars: The National Green Tribunal (NGT) has asked the Indian government to consider implementing a star rating system for passenger vehicles based on their fuel efficiency and carbon dioxide emissions. This request follows a plea by Dr. Sanjay Kulshrestha, who argues that current government efforts are insufficient to address vehicular pollution, a major contributor to air pollution in India. The NGT has sought responses from several ministries, including the Ministry of Road Transport and Highways and the Ministry of Environment, Forest and Climate Change. The proposed star rating system aims to provide consumers with clear information on vehicle emissions, similar to systems used in many developed countries.?

Delhi Government Introduces Tax Rebates for Scrapping Old Vehicles: On October 2nd, 2024, the Delhi government announced a new scheme offering up to a 20% tax rebate on the purchase of new vehicles when residents scrap their old ones. This initiative aims to reduce pollution by encouraging the use of newer, less-polluting vehicles. Under the scheme, owners of vehicles older than 10 years for diesel and 15 years for petrol will receive financial incentives to scrap their old vehicles and purchase new, more environmentally friendly ones. To benefit from this scheme, vehicle owners must obtain a Certificate of Deposit from a registered scrapping facility and submit it during the registration of their new vehicle within three years. The policy includes substantial fines for non-compliance and offers additional benefits for those who voluntarily participate. This move is part of a broader effort to tackle vehicular pollution and promote sustainable transportation in Delhi. The scheme provides different tax incentives based on the type of vehicle and fuel used.?

?? AGRICULTURE

Warming climate and India’s push for tougher seed varieties: Varying climate and unpredictable weather patterns are disrupting traditional farming practices in India pushing agricultural research organizations to develop rice and other crop varieties that can withstand extreme weather conditions, require less water, and are more disease-resistant. The need for resilient seeds is not unique to India. Similar efforts are underway globally, supported by various programs and organizations to ensure food security amid changing climate conditions. But ensuring that these seeds reach all farmers, along with proper training and affordability, remains a critical challenge.?

??? AIR QUALITY

Delhi No Longer India’s Most Polluted: Meghalaya and Bihar Take the Lead: Byrnihat in Meghalaya and Begusarai in Bihar have surpassed Delhi in air pollution levels. Byrnihat, an industrial town, suffers from severe pollution due to industrial emissions and heavy interstate truck movement. Similarly, Begusarai faces high pollution levels, impacting public health and causing significant discomfort among residents. The lack of coordinated state action exacerbates the problem in these regions.?

??INDUSTRY

State-Level Incentives Could Propel India’s Biogas Sector, Save ?50,000 Crore: The Indian Biogas Association (IBA) suggests that additional financial assistance, easier access to finance, and local support mechanisms are crucial to propel India’s Biogas Sector. Examples include the Uttar Pradesh government’s additional subsidies for biogas projects. The IBA emphasizes the importance of state involvement in waste management, pollution reduction, and health improvements. They also highlight the need for better infrastructure and reliable feedstock supply to ensure the efficient operation of biogas plants.

PLI Scheme Spurs Manufacturing Growth and Job Creation: NITI Aayog: The Production-linked Incentive (PLI) scheme is significantly boosting India’s manufacturing sector, according to a recent industrial survey presented by NITI Aayog CEO BVR Subrahmanyam. The survey revealed a 21.5% growth in industrial output for 2022-23, with substantial contributions from sectors like basic metals, petroleum products, food products, chemicals, and motor vehicles. The PLI scheme has also led to the creation of 2.2 million jobs since 2018-19, highlighting its role in both economic growth and employment generation.

??? CLIMATE RISKS, ECOLOGY, ENVIRONMENT AND PEOPLE

Extreme Weather in Nepal Linked to Climate Change, Says ICIMOD: The International Centre for Integrated Mountain Development (ICIMOD) has warned that climate change is intensifying extreme weather events in Nepal. The country is experiencing severe floods, landslides, and torrential rains, resulting in significant loss of life and property. The recent extreme weather has caused at least 112 deaths and submerged much of Kathmandu, with rivers like the Bagmati swelling above danger levels. ICIMOD attributes these events to a combination of changing weather patterns and unplanned urban development, which exacerbate Nepal’s vulnerability to such disasters.?

Climate Change Disrupts Education in India: Extreme weather events such as heat waves, floods, and heavy rains have increased the? frequency of school closures in India. These disruptions have become more common in recent years, significantly impacting the education system. For instance, in 2023, Meghalaya closed schools for the first time due to a heat wave, and in 2024, several states extended summer vacations because of prolonged heat waves. The National Action Plan on Climate Change (NAPCC), launched in 2008, does not specifically address the impact of climate change on education. The increasing incidents of extreme weather are causing a considerable loss of school days, with children losing about 10% of school days each academic year due to climate-related events.?

Greenhushing - The New Trend in Corporate Sustainability: Greenhushing is a practice where companies intentionally underreport or withhold information about their environmental efforts. This trend is becoming more common as firms aim to avoid scrutiny, litigation, and backlash associated with their sustainability claims. Companies may also refrain from promoting their green credentials to avoid consumer perceptions that sustainable products are of lower quality or more expensive. Additionally, some businesses prefer to keep their environmental measures discreet to not disrupt customer experiences, especially in industries like tourism.

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