Nordic Green News: Week 37, 2023
Mundus Nordic Green News
Mundus Nordic Green News covers the Green transition in the Nordics with a weekly newsletter and monthly indices
Globally it was a dramatic week for climate and the green transition, with a number of important stories. We begin in Libya, where climate terror reigned. Tragically, the picture and embedded video say it all.?
Some reason for optimism came from the International Energy Agency (IEA) , who’s chief Fatih Birol gave a sneak look into the IEAs energy forecast, saying that his analysts could spot the peak for coal, oil and gas this decade. Although, as this post points out, celebrations should be muted and its only a reason to double-down on efforts.
The story with the most political impact came from Ursula von der Leyen, who used her State of the Union speech to announce an investigation into allegations of the Chinese state subsidising EV sales into European markets. As Nordic Green News has been highlighting for several months, dramatic events are underway in the Chinese vehicle market with huge potential ramifications for Europe and the rest of the world.?
The probe, which could result in punitive tariffs, has prompted analyst warnings of retaliatory action from Beijing and complaints from Chinese industry executives who say the sector's competitive advantage is not due to subsidies. China's Ministry of Commerce stated that the investigation “is a naked protectionist act that will seriously disrupt and distort the global automotive industry and supply chain, including the EU, and will have a negative impact on China-EU economic and trade relations." The move appears to have heavy political support from within Europe, with both France and Germany in agreement. Many are looking into the rearview mirror to see how Europe abandoned its solar PV manufacturing industry in recent years. However, the analogy may not be that good, as European car brands also have important sales in China, in particular, Volkswagen. Sweden’s car brands, 沃尔沃汽车 and Polestar , have a Chinese owner and production, and may then face import tariffs bringing vehicles into Europe.
Nonetheless, the EU appears to have prepared itself for a fight that it sees as vital to its economic future. EU officials say that Chinese EVs are undercutting the prices of local models by about 20% in the European market, piling pressure on European automakers to produce lower-cost EVs. And with China's share of EVs sold in Europe already having risen to 8% en route to a forecast 15% in 2025, this puts at long-term risk some of the automotive industry’s 13mn jobs, which makes up 7% of the EU economy.
The EU has much to lose out of a tariff fight, so the political fight may end up with some form of eventual compromise with China. However, a broader point is that the green transition is already presenting profound, non-linear impacts on the global economy. That and yet again, Chinese industry has positioned itself well (see the last story).
In addition to Wednesday’s car tariff spat, von der Leyen also said that she would put forward a package of measures to support its wind power industry. von der Leyen said in a speech to the European Parliament "We will fast-track permitting even more. We will improve the auction systems across the EU. We will focus on skills, access to finance and stable supply chains,". Shares of EU wind turbine manufacturers, which includes Denmark's 维斯塔斯 were up slightly on the news.
Finally, we point to our first Feature Story, where the Maersk shipping group has committed itself to the PtX business, founding its own company with an aim to produce 3mn tonnes of green methanol a year by 2030.
Feature Stories
Maersk has established a new company called C2X to produce "green methanol." This announcement was made during a naming ceremony by the European Commission President Ursula von der Leyen, for the Laura Maersk, the world's first container vessel powered by methanol.?
The goal of C2X (Carbon to X) is to build, own, and operate large-scale facilities for producing green methanol, as an eco-friendly alternative to fossil bunker oil for ship fuel. The company says that the decision to create C2X is driven by the urgent environmental need to increase the production of green methanol, which the oil industry is failing to do. And while Maersk’s need is for shipping, green methanol has other applications; it can be used in other industries that are challenging to decarbonize, including plastics, adhesives, textiles, and fuels.
C2X will be 80% owned by the family AP M?ller Holding, with the Maersk listed company as a 20% minority owner. According to the Financial Times, C2X has already recruited a team of 60 from the chemicals and renewable energy industries, with its CFO, a former banker at Morgan Stanley and Goldman Sachs. Two factory locations have already been identified, strategically positioned near some of the world's busiest shipping routes. One will be situated at the Suez Canal in Egypt, and the other near the southern Spanish city of Huelva, close to the Strait of Gibraltar. These locations signify a commitment to producing green methanol in regions vital to global maritime transportation.
The Confederation of Swedish Enterprise ( Svenskt N?ringsliv ) responded officially to a Government investigation looking into “The value of the wind - Compensation, incentives and planning for sustainable continued expansion of wind power”. Svenskt N?ringsliv says that it is central to Sweden’s prosperity and to the business community's ability to implement the climate transition that must take place. The very large investments required to enable the transition will not be carried out if there is a lack of confidence that the Swedish electricity system will be able to continue to offer reliable and fossil-free electricity at competitive costs. It presents a long series of policy recommendations for the development of the energy system, with the two central policy recommendations being to build as much land-based wind power as possible, and to develop the most attractive locations for offshore wind power along Sweden's coasts. We have also been clear that new nuclear power is needed in a cost-effective and reliable electricity system. It must be based on a combination of weather dependence and predictable electricity production. To pit power plants against each other is to do the power supply a disservice. Nuclear power increases the value of wind power and vice versa.?
The Swedish Energy Agency International has granted SEK 133 million in grants to SkyFuelH2, a project for the development of sustainable aviation fuel (SAF), which is planned in L?ngsele, Sollefte?. The project is a collaboration between Uniper and Sasol ecoFT. The planned facility is one of the first of its kind for the production of SAF. The grant will go towards co-financing a technical feasibility study for the project. The plant will be one of the first in the world planned to combine gasification of biomass, Fischer-Tropsch synthesis and hydrogen from electrolysis in order to get the most out of the carbon in the biomass. The biomass comes from residual products from forestry, which ensures a completely sustainable value chain.
Nordic Sound Bites
领英推荐
G20 ‘missing in action’ on fossil fuels even as it boosts green energy goals (Financial Times, paywall)
French car battery start-up Verkor secures €2bn for first plant (Financial Times, paywall)
The EV car crash is a warning for Europe’s industrial transition?(Financial Times, paywall)
China's rapid progress in the electric vehicle (EV) market is a stark warning for Europe's industrial transition. While European manufacturers are still planning for EVs to hit the market in 2026 or 2027, Chinese automakers already have quality EVs ready for European consumers. Almost one in five cars sold in Europe is electric, and the International Energy Agency predicts that EVs will make up 35% of global sales by 2030. Chinese brands are gaining traction in Europe, with over 8% market share in the EV sector. China's dominance in battery technology, with control over lithium processing and production, gives it a significant cost advantage, making it a formidable competitor.
Europe's policy approach has been target-driven but lacking in planning and support. Industry demands "technological neutrality" from policymakers, which can hinder essential developments like building a widespread charging network. This indecisiveness could prove disruptive rather than sustaining for Europe's automotive sector. To remain competitive, the industry must embrace battery electric vehicles decisively and avoid procrastinating on critical investments or strategic changes