Climate News Update February 2023

Check out?Drew Stewart 's, Waterman’s environmental expert,?latest round-up of all the recent climate news, upcoming webinars and fascinating opinion pieces from across the UK and Europe, and around the world.

UK & EU

A new report by the Confederation of British Industry (CBI) finds that the transition to a greener economy “is worth ￡71bn”, and has brought jobs and investment to parts of the UK experiencing industrial decline, with the drive to reach net zero emissions involving over 20,000 businesses and 840,000 jobs. CBI add that green jobs “pay significantly more” – with an average wage of ￡42,600, compared to the national average of ￡33,400.

?The Daily Telegraph reports that hydrogen will be pumped into the UK’s main gas pipeline by 2025. It continues: “Between 2% and 5% of the fuel flowing through the country’s transmission network will be hydrogen in two years under plans drawn up by National Gas, which owns the pipelines. The blending would be the first step in plans to convert the network so that it can be filled entirely with hydrogen by 2050, as part of a national overhaul to cut carbon emissions.”

NatWest bank has announced it will stop offering loans to new customers hoping to fund oil and gas exploration, extraction or production projects, as part of a wider climate transition plan. Meanwhile, Barclays says it is tightening lending rules for coal power and will no longer finance oil sands exploration projects.

HSBC has added greenwashing to a list of risk it foresees in its future ability, to access capital markets. In the bank’s latest annual report and account, the bank confirmed it will update its climate plan by the end of the year, including new measures to measure and address climate-related risk.

The Guardian reports that “experts have urged the UK to leave the controversial energy charter treaty (ECT), a secret court system that enables fossil fuel companies to sue governments for huge sums over policies that could affect future profits”. Seven EU countries, including France, Germany and Spain have already said they will quit the ECT, with the European Commission adding that the remaining part of the treaty would “clearly undermine” climate targets and that an exit by EU countries appeared inevitable. More than 100 academics have written to the UK government to discontinue membership because it may impede limiting global warming to 1.5C.

The Climate Change Committee (CCC) has written to Farming Minister Mark Spencer, expressing concerns about his approach to importing meat under new trade deals both on climate grounds and on the grounds of fair pay for British farmers . A trade deal is being developed with Mexico which may cover beef and other meat; however, National Farmers Union’s (NFU) president has stated they do not want to see further imports of beef and noted that the beef produced in Mexico was likely to be higher in carbon intensity and greater in terms of potential deforestation risk.

The European Parliament has formally approved a law to ban the sale of new petrol and diesel cars in the EU from 2035. The landmark rule will also require carmakers to include a 55% cut in CO2 emission from new cars sold from 2030 compared to 2021 levels, much higher than the existing target of 37.5%. Separately, the EU Commission has announced new rules requiring heavy vehicles to reduce their emissions by 45% by 2030 and 90% by 2040.

The European Commission has set out proposals that would allow member states to give higher levels of state aid to particular companies. It says the aim is for Europe to compete with the US as a manufacturing hub for electric vehicles and other green products and reduce it dependence on China. European Commission chief Ursula von der Leyen announced, as part of the plan, a repurposing of existing EU funds, faster approval of green products and drives to boost skills and to seal trade agreements to secure supplies of critical raw materials. This has been partly in response to the multi-billion dollar support programmes of China and the US, including the US Inflation Reduction Act. The plan already faces major criticism , for two reasons: It’s largely drawing from existing, not new, funding lines; and it risks casting smaller EU countries against big powers Germany and France over fears that the bulk of subsidies will benefit the latter two.

The EU’s carbon price has climbed above €100 a tonne for the first time, in what the Financial Times calls “a landmark moment for one of the bloc’s key tools to fight pollution”.?The newspaper says the price of carbon credits “has risen fivefold in the past three years and gains have accelerated in recent weeks as the EU has tightened rules to make the system more onerous for polluters”. According to?Bloomberg , the increase in carbon prices comes as policymakers “work to tighten” the EU’s cap-and-trade system to help member states deliver on a goal to cut emissions 55% by 2030 from 1990 levels. The article cites an analyst who says the upward price trajectory will only continue, with carbon potentially hitting a price of €150 by next winter.?

Other Climate News:

The Guardian reports that in 99% of cases, it is more expensive to keep coal-fired power plants in the US running than to build an entirely new solar or wind energy operation nearby. On average the marginal cost for US coal plants is $36 Mw/h, while new solar is about $24 mw/h, or around a third cheaper. The shift is due in large part to the Inflation Reduction Act, signed in August 2022, which has several incentives that make wind and solar less expensive.

According to the International Energy Agency (IEA), in 2022 nearly 15% of all new car sales globally were electric , compared to 3% in 2019. More electric cars were sold in China than anywhere else. Meanwhile, China is the largest producer of solar energy and dominates solar panel manufacturing, producing more than 80% of the global supply – more than double its domestic demand.

An International Energy Agency (IEA) commentary explains its new analysis exposing the stark global inequalities between per capita CO2 emissions, both within and between countries. In 2021, the average North American emitted 11 times more energy-related CO2 than the average African. Yet variations across income groups are even more significant. The top 1% of emitters globally each had a carbon footprint of over 50 tonnes of CO2 in 2021 more than 1,000 times greater than those of the bottom 1% of emitters. The world’s top 10% of emitters are responsible for nearly half the global total, while the bottom half – some 4 billion people – make up less than 7% of emissions.

More than 11,000 Nigerians have filed a claim for damages against Shell in the UK High Court, in what it calls “a long-running court case set to test multinational companies’ responsibility for environmental damage overseas.” Two communities claim that oils spills resulting from Shell’s operations in the region have contaminated drinking water, harmed air quality and destroyed farmland and fishing stocks. In addition, Environmental lawyers ClientEarth have filed a lawsuit against the 11 Directors at Shell at the high court in England, stating that they had breached their duties under UK law to properly manage the “material and foreseeable” risks from climate change, in the first case in the world seeking to hold corporate directors liable for failing to properly prepare their company for the net-zero transition. Meanwhile, profits at Shell more than doubled to $40bn in 2022 as a result of surging gas prices linked to Russia’s invasion of Ukraine, exceeding the previous record of $28bn in 2008.

The Democratic Republic of Congo (DRC) has postponed rainforest oil auctions to allow oil companies to drill in its rainforests and peatlands, however, hydrocarbons minister Didier Budimbu tweeted that it has been pushed back to various dates between April and October 2023. Tal Harris, a spokesperson for Greenpeace Africa, stated “Whatever the reason for the DRC to reschedule its oil auction, the Congolese government should use it to close the chapter on its fossil horror story and offer an alternative story of hope”.

The 2023 Corporate Climate Responsibility Monitor, jointly released by the NewClimate Institute for Climate Policy and Global Sustainability and the NGO Carbon Market Watch has found that 24 of the world’s largest and richest companies including Amazon, Samsung and Nestlé have failed to deliver on their ‘climate pledge’, according to the latest report evaluating the transparency and integrity of corporate environmental strategies. The report found that the climate strategies of those major global companies were ‘mired by ambiguous commitments, offsetting plans that lack credibility and emission scope exclusions’. These 24 companies are responsible for around 4% of global emission, greater that all emissions from Japan (3.47%) and 4 times greater than the UK (1.03%).

Climate change is causing sea levels to rise faster than for 3,000 years, with UN secretary-general António Guterres warning of “a mass exodus of entire populations on a biblical scale” as some nations could cease to exist. A new study published in?Nature Communications ?that shows that even if emissions are curtailed in line with a ‘moderate emissions scenario’, sea levels will continue rising through to at least 2150 and beyond due to the delayed melting of the Greenland and Antarctic Ice Sheets. It says ‘only by limiting human-caused global warming to 1.5C or less, which many scientists don’t consider feasible, can multi-century melting of the globe’s ice sheets and increase in sea levels be averted’.

Wind manufacturing firm Vestas has developed a chemical solution that allows turbine blades to be broken down and recycled. The process could keep blades out of landfill or be used to recycle previously discarded items, signally a new era for the wind industry and contributing to achieving circularity.

Hungarian low-cost airline Wizz Air has announced plans to increase procurement of ?sustainable aviation fuel (SAFs). Wizz Air has entered a new agreement with Neste to purchase and use SAFs from 2025 onwards, giving the airline the purchasing option of more than 36,000 tonnes of SAFs annually. This agreement comes in the same week that Heathrow Airport and Boeing signalled their plans to increase uptake in alternative fuel solutions.

Here’s an incredibly detailed, interactive emissions map harnessing satellite imagery, artificial intelligence, and collective data science expertise to track human-caused GHG emissions.

Environment, Social, Governance (ESG)

The demand for investor-grade data around environmental, social and governance (ESG) issues has been building for years, and it’s not slowing down any time soon. Seven ways ESG reporting is already here:?

1.?????You’re doing business in the European Union: Now formally adopted, the Corporate Sustainability Reporting Directive (CSRD) amends and significantly expands the EU requirements for sustainability reporting. In addition to requiring EU companies to report in line with European Sustainability Reporting Standards — an ambitious set of draft standards that cover a broad range of ESG topics (some 1,100 disclosures) and reporting to stakeholders beyond just investors — the CSRD also includes non-EU based companies if they generate substantial revenue and have employees (e.g., a subsidiary) in the EU.

2.?????Or only in Germany: The German Supply Chain Due Diligence Act sets forth a number of requirements for human rights and environmental protection for companies that supply goods or services in Germany. The legislation is extensive, scoping in companies across sectors, regardless of revenue or headquarters location.

3.?????Or even in select U.S cities: Several states and major cities have their own ESG and sustainability rules. For example, New York City Local Law 97 requires most buildings over 25,000 square feet to meet specific energy efficiency and greenhouse gas emissions limits by 2024, with stricter limits slated for 2030.

4.?????You plan to go public: So, you are a private company with aspirations to list on a U.S. stock exchange one day. Under the SEC’s proposed ruling, climate-related disclosures would be required in registration statements, including those related to initial public offerings. This provision is particularly relevant for companies in the private equity space, where going public is a common exit strategy. This is just one of several ways private companies may find themselves indirectly subject to ESG rules. And, once you are a public company looking to attract new investors, your ratings agencies will be on the lookout for robust ESG disclosures.

5.?????Your customers and suppliers demand it: Increasingly, we’re finding key stakeholders in companies’ value chains are requiring diversity, equity and inclusion metrics, emissions reduction or net zero targets and other ESG-related data when setting up contractual agreements. Microsoft, for example, requires its suppliers to disclose Scope 1, 2 and 3 greenhouse gas emissions data, and potentially provide third-party assurance as well. Likewise, Salesforce asks suppliers to prepare a Sustainability Exhibit in their contracts. Provisions include setting a science-based target, increasing sustainability-related disclosures, creating sustainability improvement plans and providing products and services on a carbon-neutral basis.?In short, engaging with ESG is quickly becoming the cost of doing business. And those who don’t engage will lose out — financially and reputationally.

6.?????As do your investors with proxy votes: A key objective of TCFD climate disclosures and other sustainability-related rules such as CSRD, is to provide investors with high-quality, timely and comparable ESG data that they can use to power decision-making. Investor demand for this data is not new, and regulation is not their only mechanism for obtaining it. Annual shareholder meetings continue to be an important venue for investors and other stakeholders to request ESG disclosures — and sometimes proxy votes speak louder than words.

7.?????And if none of the above applies … ESG is ultimately a competitive advantage: Reporting on ESG criteria is not just about compliance – with regulation, with stakeholder demands, with business norms. It’s a give and take, and there is a lot to be gained by telling your ESG story backed up by financial and non-financial information. Transparency leads to accountability. And accountability enhances trust among stakeholders, promoting the long-term resilience of the business. In the end, the companies that go to market with a mature ESG strategy and well-controlled data to back it up will have the competitive advantage.

Other ESG news:

The International Financial Reporting Standards Foundations’ (IFRS) new global sustainability and climate disclosures standards will be effective as of January 2024, according to the latest announcement by IFRS’s International Sustainability Standards Board (ISSB). The new reporting standards are expected to be released by the end of Q2 2023, with companies beginning to issue disclosures against the standards in 2025. The ISSB was?officially launched in November 2021 ?at the COP26 climate conference, with the goal to develop IFRS Sustainability Disclosure Standards, in order to provide a global baseline of disclosure requirements that can be used by jurisdictions on a standalone basis or incorporated into broader reporting frameworks. The board?released the first exposure drafts ?for its first two reporting standards, covering general requirements for sustainability-related financial information and climate-related disclosures in March 2022.

Conducted by Opinium, research of over 500 UK SMEs found that 61% of firms take an active interest in the ESG credentials of their suppliers, with 51% refusing to work with businesses with a poor environmental record. Concern over the ESG record of a business continued into enquiries made by customers with 53% demanding to know about an SME’s own standards. This is led to 57% of SMEs considering ESG standards as important to their business and only 14% who do not.

?

This month’s sustainable new innovations

1.?????A countertop device for making plant-based milks at home

Non-dairy milks have a lower environmental impact than dairy equivalents and are fairly easy to make at home, requiring a nut or seed, water, and a blender. But despite this, many of us just don’t have the time, inclination, or ingredients to make plant-based milks by hand.

Step in GROW UP, a sleek, countertop brewer designed to produce fresh, non-dairy milk within minutes. Users choose from a range of up to 10 different ingredients, including nuts, oats, coconuts, and hemp seeds. All it takes to make a glass of fresh milk is one cup of the chosen ingredient, plus water, added to the top of the brewer. With the push of a button, the device then makes fresh plant-based milk in less than six minutes.

Parts of the machine are dishwasher safe. GROW UP also does not use single-use packaging, and the machine includes a self-cleaning function. The brewing device is currently available for pre-order with a $50 deposit. It is scheduled to be shipped in spring 2023.

2.?????A bin that turns your home’s food waste into animal feed

Food waste is a growing problem around the world. When we waste food, many nutrients and resources are wasted with it. Moreover, when food ends up rotting in landfill, methane is released, which further contributes to global warming. Now, Mill Industries Inc has created a bin that conserves the nutrients from food waste and sends them back to farms where they can feed chickens and help protect the planet.

Every ‘member’ who subscribes to the food waste system receives a Mill kitchen bin that dries, shrinks, and de-stinks your kitchen waste overnight, turning it into nutrient-rich Food Grounds. Once the bin is full, members can schedule a pickup for the food grounds using the Mill app. The company turns the food grounds into a chicken feed ingredient.

Mill’s founder and chief executive Matt Rogers says the system “makes it easy to do the right thing”. He explains: “Food isn’t trash. But until today, it was hard to do anything except throw uneaten food in the garbage. The Mill Membership is a simple way to keep food out of landfills, send it back to farms, and make your kitchen smell awesome. Resources are increasingly scarce – wasting food at home is a solvable problem that we can tackle together.”

Mill is currently working through the necessary scientific and regulatory processes to turn the food grounds into a safe and nutritious chicken feed ingredient.

3.?????Longer-lasting, self-healing concrete

The ancient Romans were master builders. While many modern concrete structures have crumbled in just a few decades, many Roman structures are still standing, including the Pantheon, which has the world’s largest unreinforced concrete dome and was completed in 128 CE. Roman concrete has been known to withstand earthquakes and harsh weather, and certain variations could even set underwater. Until now, exactly what made Roman concrete so durable has remained something of a mystery.

But now, a team of researchers from MIT, Harvard University, and laboratories in Italy and Switzerland, has discovered some of the ancient concrete-manufacturing strategies used by the Romans. They found that Roman concrete contains ‘lime clasts’ – tiny minerals originating from lime that give the concrete the ability to self-heal. Spectroscopic examination also suggested that the Romans used lime in its more reactive form – quicklime.

The researchers concluded that the process of incorporating quicklime, known as hot mixing, was key to the concrete’s durability. During hot mixing, the lime clasts develop a ‘nanoparticle architecture’. When cracked, this reacts with water to create a calcium-saturated solution, which then recrystallises as calcium carbonate and quickly fills the crack.

The team is now working to commercialise this formula. If successful, the more durable concrete could reduce the environmental impact of cement production, as concrete structures will not need to be replaced so quickly.

Webinars:

Decarbonising Transport Week 6-10 March 2023:

CILT (UK): Decarbonising Transport: Visions from Future Leaders. Monday 6 March, 12.30-13.30 GMT. Register here.

Rail Freight Group: What is the circular economy and how does rail freight play its part both as a conveyor and a consumer of materials. Tuesday 7 March, 08.30-09.30 GMT. Register here.

Railway Industry Association: Decarbonising the UK Rail Sector. Wednesday 8 March, 11.00-12.30, Register here.

Binary Carbon: The value of women in fighting climate change. Wednesday 8 March, 13.00-14.30 GMT. Register here .

HyDEX/ERA: The role of hydrogen in decarbonising transport. Thursday 9 March, 12.00-13.30 GMT. Register here.

?

Other webinars:

LGC Net Zero Webinar Series: Net Zero Goals and National Policy: Collaboration on the Ground. 28 February, View recording here.

IEMA: Biodiversity Net Gain: Ongoing BNG Management & Monitoring. Wednesday 22 March, 12.00-13.00 GMT. Register here.