Signals of Change March 2024

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Here are this month’s signals of change towards...?

A just transition from fossil fuels to clean solutions? ?

Energy?

First up, corporate clean energy buying hit a record high in 2023 according to Bloomberg NEF. Large businesses collectively announced 46GW of wind and solar power purchase agreements, marking a 12% increase on 2022. ?

Meanwhile, Google has announced over 700 MW of new clean power purchase agreements across Europe. The tech giant has a goal of more than 90% carbon-free energy in certain regions by 2026 and to ultimately power all operations with carbon-free energy by 2030. ?

In the U.S.,?Texas is set to surpass California in grid battery deployments in 2024, capitalizing on its competitive energy market and ample land for energy storage projects. With the U.S. set to add 14.3 GW of battery storage in total this year, the?massive expansion of capacity needed to facilitate the clean energy transition looks to be underway at last. ?

Finally, the UK Department for Energy Security and Net-Zero has predominantly attributed the country's achievement of halving domestic emissions since 1990 to a shift in the country’s electricity generation mix. Coal fell from 40% in the early 2010s to 1.5% by 2022, while renewables went from 7% to over one-third of the mix in the same period.?

Transport?

A $8.2 million AUD trial, led by Australia’s Swinburne University, Siemens AG, Royal Melbourne Institute of Technology, and Sea Electric, is testing roads capable of wirelessly charge electric trucks while they drive. The move aims to address challenges in electrifying heavy-vehicle fleets?in Australia, where trucks must travel vast distances between cities. ?

Next to Southeast Asia, where Thailand's Board of Investment has unveiled tax incentives for companies introducing electric trucks and buses into their fleets. Special tax deductions are available until 2025, and there will be additional financial support for battery manufacturing. ?

India's government has introduced a program to support the retrofitting of existing ships to operate on green hydrogen, along with the development of bunkering and refuelling facilities in ports for green hydrogen-based fuels. The program is part of its National Green Hydrogen Mission to decarbonize the economy and reduce dependence on fossil fuel imports.?

Latest from We Mean Business Coalition??

Investing in green industrialism will help countries thrive and fuel the growth of clean energy technologies. We Mean Business Coalition CEO María Mendiluce compares the approaches of the U.S. and China in her latest article for Forbes. ?

With record-breaking temperatures in the news, it is imperative we make good on what was agreed at COP28 and tackle the main source of planet-warming emissions, burning fossil fuels. Find out what’s next for our Fossil to Clean campaign. ?

Meanwhile, for a deep dive into one of the stories featured in this newsletter, see our latest case study?on the green steel industry. With the right ingredients it’s possible to create a bankable business case for projects to decarbonize the highest-emitting sectors.??

Industry?

German steelmaker Salzgitter has signed a 10-year power purchase agreement with renewables firm Octopus Energy, securing 126,000MWh of clean energy annually to support green steel production. ?

Staying with steel, ArcelorMittal is set to receive €1.3 billion from the European Commission to decarbonize its steel production. This will fund the construction of a direct reduction plant and three new electric arc furnaces, aiming to eventually operate exclusively on renewable hydrogen. ?

The European Commission has also allocated €402 million to establish a green hydrogen hub in Italy's Puglia region. The hydrogen is intended for use in producing direct reduction iron and decarbonizing the country's steel industry.?

Lastly to green cement and news that France-based Hoffmann Green Cement Technologies saw its turnover double to €6 million in 2023 against its 2022 figure. The surge was driven by the sale of 21,378 tons of its clinker-free alternative cement. ?

Built environment?

First to the U.S., where the Department of Energy has allocated an additional $63 million to grow domestic production of heat pumps and other clean energy technologies under the Inflation Reduction Act. Alongside decreasing fossil fuel reliance, the move is aimed at bolstering manufacturing, creating green jobs and lowering energy costs. ?

Meanwhile in the UK, the National Grid is collaborating with energy supplier Octopus to streamline the installation process for low-carbon technologies like heat pumps and solar panels, reducing installation times by up to five weeks and addressing key pinch-points in small-scale renewable deployment in the UK.? ?

Finance?

British multinational bank Barclays has announced it will no longer provide direct funding for new oil and gas projects, amid mounting pressure to curb its support for the sector. The bank was the biggest funder of the fossil fuel sector in Europe between 2016 and 2021.? ?

China's major stock exchanges, including the Shanghai Stock Exchange, Shenzhen Stock Exchange, and Beijing Stock Exchange, have announced new sustainability reporting guidelines. Hundreds of larger cap and dual-listed issuers will be required to disclose ESG topics from 2026, aligning with global trends in sustainability reporting such as the EU's CSRD and the upcoming SEC climate disclosure rules.?

In a move aimed to ‘prevent greenwashing and foster private investment in carbon removals’, EU lawmakers have reached a provisional agreement on a new regulation to establish a certification framework for quantifying, monitoring, and verifying carbon removals. ?

Protecting and restoring nature:??

Good news from Europe, where MEPs have approved the Nature Restoration Law to rehabilitate at least 20% of the European Union's land and sea areas by 2030 and all degraded ecosystems by 2050. Businesses including Unilever, Coca-Cola, Salesforce, EDF Energy, Unilever and Iberdrola had united to voice their support for the business benefits of nature. Citing both the numerous benefits and the threat from the degradation of the natural world to businesses’ sustainability efforts, our founding partners CLG-Europe are calling for an effective and robust implementation of the law. ?

Turning to voluntary action to protect and restore nature, Bain & Company (with whom we partnered on our recent Corporate Climate Stocktake) has made the first platinum-tiered carbon integrity claim under the Voluntary Carbon Market Integrity Initiative’s (VCMI) Code of Practice. Platinum is the highest Carbon Integrity Claim available under the claims code, which aims to build companies’ confidence in voluntary carbon market participation. ??

Decarbonizing global supply chains?

Walmart reports that it has successfully achieved its Project Gigaton goal of significantly reducing emissions across its supply chains by 2030, more than four years ahead of schedule. Over 5,900 suppliers, representing 75% of the retailer’s net sales, participating and disclosing their emissions. ?

Meanwhile, the International Energy Agency (IEA) has announced an expansion of its remit with a new program focused on sustainably scaling supply chains for critical minerals, essential to manufacturing clean energy and low-carbon transport technologies. The move aims to address concentration issues and enhance security through a new critical mineral security program, aimed at diversifying supply chains and boosting recycling. ?

Companies taking action??

Over 15,000 companies are taking action through Coalition partner initiatives. See all companies who committed in the past month on the We Mean Business Coalition website.?

Companies setting their ambition for net zero include:?

• 7722 companies working to cut their emissions in line with science through SBTi? ?
• 7492 small and medium-sized enterprises working to cut emissions with the SME Climate Hub? ?
• 464 companies who have now signed the Climate Pledge, to reach net zero by 2040 ? ?

Meanwhile, companies are driving down emissions through the following demand-side initiatives:?

• 130 companies are accelerating the transition to electric vehicles with EV100, and 5 companies are kickstarting the transition to zero-emission medium- and heavy-duty vehicles with EV100+.? ?
• 128 companies are committed to improving their energy efficiency through EP100. ? ?
• 428 companies have committed to 100% renewable energy with RE100 ? ?
• 38 companies have joined ConcreteZero to create a market for net zero concrete? ?
• 45 companies have committed to SteelZero to create a market for net zero steel?

Events?

Ceres LEAD on a Clean Economy 5 – 7 March?

FT Climate Capital Live 13 – 14 March??

Climate Investing: Looking Beyond Targets to Assess Company Transition Plans 26 March ?

Innovation Zero 2024 30 March – 1 April ?

US Climate Action Summit 2024 22 - 28 April?

Bonn Climate Change Conference – 3-13 June???

G7 Summit – 13-15 June????

Jobs? Various posts at BSR ? Various posts at CDP ? Various posts at Ceres ? Various posts at CLG Europe (CISL) ? Various posts at Climate Group ? Various posts at WBCSD ? Various posts at SBTi?