Energy Transition Digest: 5-18 August 2024

1. Chinese Wind Turbines To Be Made in Italy

Mingyang Smart Energy will set up wind turbines manufacturing plant in Italy in partnership with Renexia Spa .

So what? It will be the first Chinese wind turbine production facility in the EU, marking the expansion of leading Chinese wind turbine OEMs into the European market.

Details:

• The €500 million factory, to be established as a JV or Mingyang and Renexia, will initially manufacture 18.8 MW floating offshore wind turbines for Renexia's Med Wind project.
• Med Wind is a massive 2.8 GW floating offshore wind development off the coast of Sicily that plans to start installation works in 2026 – by that time the new factory should be ready.
• Mingyang sees increasing interest for its turbines in Europe: it was recently named the preferred supplier for another (albeit smaller) project in Germany, and RWE said it was interested in Mingyang's technology for its offshore wind projects.

2. Almost 50K Heat-related Deaths in Europe Last Year

More than 47,000 people died in Europe in 2023 because of extreme heat.

Why it matters? As heatwaves become more frequent and intense as a result of climate change, adaptation must become the new norm in all aspects of human activities: from urban planning to personal vacation plans and business operations.

Details:

• Numbers come from a study by Barcelona Institute for Global Health (ISGlobal) that follows a similar study showing more than 60,000 heat-related deaths in the summer of 2022.
• Italy, Spain, and Germany had the highest number of heat-attributable deaths in 2023.
• Women and people older than 80 are more vulnerable to heat.
• Since the year 2000, societal adaptation could have prevented up to 80% of heat-related mortality, according to the estimates in the study.

3. New Sustainable Supply Chain Finance Program Launched

花旗 and IFC - International Finance Corporation launched a $2bn sustainable supply chain program for emerging markets.

So what? As companies and regulators intensify efforts to address sustainability of complex supply chains, many actors in these supply chains need support to improve their sustainability performance – especially smaller companies that lack funds or expertise. Initiatives like this one help tackle the issue.

Detials:

• The program is part of the wider IFC's initiative launched in 2022 with the aim to provide supply chain finance and advisory to emerging market suppliers.
• Citi has a $1 trillion sustainable finance goal by 2030, of which $441bn has been deployed as of 2023.

4. New Leadership of Seabed Mining Regulator

International Seabed Authority elected Leticia Carvalho as its new secretary-general.

So what? The industry expects the new appointment to delay the start of deep sea mining, giving Carvalho’s background in oceanography and environmental regulation. But given that the impact of seabed mining on biodiversity and ocean ecosystems is not fully understood, it might be a good thing.

Details:

• Deep sea mining can help scale the supply of critical minerals but remains a debated issue: some countries are pushing to start as soon as possible, while others want a complete ban on seabed mining because of potentially harmful ecological consequences.
• There is currently a deadline to finalize the ISA regulations governing seabed mining, although the new secretary-general doesn’t expect it to be met.
• 32 mining contracts are already issued to companies that want to start mining in international waters, and they are waiting for regulations to be finalized.