In this issue: Success factors for green industrial projects; Tipping the scales on industrial decarbonisation; Zero-emissions cargo handling
Mission Possible Partnership
Alliance of climate leaders focused on accelerating decarbonisation across high-emitting industries in the years ahead.
Signal from MPP | Issue No. 15 | September 2024
In this issue, we look at new research informed by MPP’s Global Project Tracker examining the different types of interventions that are driving commercial-scale decarbonisation projects towards investment across industrial sectors today, and the success factors that can be replicated to deliver widespread momentum.
By mapping the contours of industrial decarbonisation in increasing granularity, we aim to build a growing body of actionable insights. These latest Tracker findings – captured in a series of 12 case studies - surface a critical set of financial, policy and supply-chain coordination levers that are creating the enabling conditions to make projects more bankable in specific sectors and regions. They offer learnings on how we can drive efforts to bring an increasing project pipeline to reality and scale low carbon industrial markets.
In our interview with MPP Board Member and Senior Fellow Dick Benschop, he gives context to the case studies, explaining the importance of securing investment decisions on a further 600 net-zero-aligned industrial plants within the next few years, to keep 2030 milestones for net zero 2050 in sight. He reflects on how - despite the huge challenges ahead – increasing visibility on the success factors in play makes rapid progress possible.
And finally, we learn how action to decarbonise and transform industry is already underway in Los Angeles, California, where technology readiness levels are improving for zero-emissions cargo handling equipment in the home of two of the busiest container ports in the USA.
As always, we value your feedback.
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1. Success factors for green industrial projects
MPP’s latest research informed by our Global Project Tracker reveals the levers accelerating investment decisions and kick-starting markets for clean industrial products.
2. Tipping the scales on industrial decarbonisation
[Video] Reflections from Dick Benschop, MPP Board Member and Senior Fellow, on the opportunity for accelerating industrial decarbonisation and the main takeaways from studying the Global Project Tracker.
3. The Time Is Now for Zero-Emissions Cargo Handling Equipment at America’s Busiest Cargo Ports
RMI and MPP bring new insights on port decarbonisation.
1. Success factors for green industrial projects
MPP’s latest research informed by our Global Project Tracker reveals the levers accelerating investment decisions and kick-starting new markets.
In a new insight brief, derived from MPP’s Global Project Tracker, a series of 12 case studies highlight how certain policy, supply chain coordination, and financial levers are helping to drive critical net-zero-aligned industrial projects towards investment in specific sectors and geographies.
Understanding these levers, including their success factors, potential for impact and wider deployment, can help to accelerate low carbon industrial markets and scale-up from single commercial-scale decarbonisation projects towards the wider delivery of 10s and 100s of projects.
The examples show how a wide variety of players (including policymakers, financial institutions, insurers, and downstream businesses) are stepping in with interventions and mechanisms that are creating advantages for transforming certain industrial sectors in specific regions. Understanding how to deploy the levers in the right way is key to scaling markets. Generalised learnings demonstrate how the different levers can be applied in other sectors and geographies to accelerate progress and have a transformative effect across the project pipeline as a whole.
“Each case study highlights the policy, coordination and financial levers that have been critical to the progression of specific projects towards Final Investment Decision and demonstrates why they have been successful in bringing aspiration to reality,” explains Catherine McFarlane , head of sector transitions and insight at MPP.??
“But it is the wider learnings shared across individual sectors and beyond to others that will truly start to move the dial,” she added. “The research demonstrates how this so-called “ripple effect” can prompt change.”
Tracking progress to accelerate delivery.
Mission Possible Partnership (MPP) launched the new Global Project Tracker in April. Its comparative data on the state of transition across the seven heaviest-emitting industry and transport sectors highlights the scale of acceleration that is needed to deliver a critical further 600 commercial-scale decarbonisation projects to Final Investment Decision (FID) over the next few years to bring the so-called ‘harder-to-abate’ sectors in line with their 2030 milestones for net-zero 2050.
Value chain scale-up.
The new case studies are drawn from studying movements in the Tracker and cover live examples of both the early market journey towards project FID and market acceleration phases, where project deployment can be accelerated through market mechanisms.?
Together, they demonstrate how we can deploy levers in the right way to both kick-start new markets for clean industrial products, and then drive the scale that’s needed?to move from having one ‘first-of-a-kind’ project at investment to the next projects in each sector.
The different levers highlighted in MPP’s latest series of case studies include:
Policy levers:
1.???????? Mandates: EU SAF blending mandate
2.???????? Subsidies: (i) IRA 45V; (ii) DOE loan guarantees
3.???????? Auctions: European Hydrogen Bank
4.???????? Intermediaries: Northern Lights
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Financial de-risking levers:
5.???????? Equity co-investment: Airline co-investments in SAF
6.???????? De-risking supply: (i) New Energy Risk insurance models; (ii) Revenue certainty models
Market acceleration levers:
7.???????? Co-ordination across the value chain: (i) FertigHy; (ii) Total H2 tender; (iii) Pepsi Co. and Fertiberia
8.???????? Demand aggregation: First Movers Coalition
2. Tipping the scales on industrial decarbonisation [video]
Key takeaways from the Global Project Tracker
Our Board Member and Senior Fellow, Dick Benschop, reflects on key takeaways from the Global Project Tracker, detailing the current state of play and the opportunity to accelerate transformation across industrial sectors in line with 2030 decarbonisation milestones.
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See the takeaways in full here .
3. The Time Is Now for Zero-Emissions Cargo Handling Equipment at America’s Busiest Cargo Ports
The Ports of Los Angeles and Long Beach handle nearly 40 percent of US shipping container traffic; decarbonising the equipment that handles these containers needs to begin now. Excerpt from RMI by Mia Reback ,? Nocona Sanders ,? Andrew Waddell ,? Pablo Mu?oz.
Ocean ports around the world represent major sources of coastal air pollution, with fossil fuel-powered ships, trucks, and heavy equipment in use at port terminals. In Southern California, home to two of the busiest container ports in the county, that pollution is a particularly acute challenge given the proximities to large metropolitan populations. In fact, the Ports of Los Angeles and Long Beach moved more than 16 million TEUs, or nearly 40 percent of imported containers, in the United States in 2023. Those containers include everything from clothes to lifesaving medical equipment. When containers arrive on US shores, they rely on a network of heavy-duty infrastructure known collectively as cargo handling equipment to get them off boats and ultimately into consumer hands.
Cargo handling equipment, also known as container handling equipment, refers to the cranes, top handlers, forklifts, and tractors that load and unload shipping containers on and off boats. Today, most cargo handling equipment runs on diesel. Replacing diesel cargo handling equipment with zero emissions alternatives will improve local air quality and health in neighbouring communities and reduce climate impacts.
But roadblocks remain, including a lack of data to support terminal operators, ports, labour unions, and other key stakeholders in making decisions about technology pathways and plans for needed charging and hydrogen refuelling infrastructure.
That’s why RMI and the Mission Possible Partnership analysed the total cost of ownership for four types of cargo handling equipment: to provide stakeholders with an understanding of the zero-emissions technologies available today, how the total cost of battery electric and hydrogen-powered equipment compare with diesel powertrains, and the green electricity and hydrogen needed at the port to power net-zero equipment.
Read on here for the insights of this analysis.
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Mission Possible Partnership is?a movement of climate leaders in business and civil society driving industrial decarbonisation across the entire value chain of the world’s highest-emitting sectors: aluminium, cement, chemicals, steel; aviation, shipping, and trucking. We’re charting the inventive steps and radical collaboration to enable commercial-scale deep decarbonisation projects in this decisive decade.
Industrial Decarbonisation, Strategy, Sustainability | Ex- McKinsey | London Business School
2 个月Walking the green premium through the value chain - thanks Dick Benschop for the insights
Way.CZ Group Founder, Chairman CEO
2 个月Zero emissions, no is not tge way but convert industry ionized emissions in molecular emissions with predominant oxygen into a O2:CO2 rate of 500 to 700:1. Should be understandble we are carbon units and vegetable biomass also, but both in synergy means we consuming molecular oxygen and expelling CO2 and vegetable biomass consuming CO2 and expelling O2. If we brake this cycle we die with no food no oxygen and the atmosphere on acidification and progressively the desertification. Is time to see clear about these principles