Signals of Change May 2024

For more updates from We Mean Business Coalition, sign up for our newsletter.

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

A just transition from fossil fuels to clean solutions?

Energy?

Last week’s meeting of the G7 Climate, Energy and Environment Ministers ended with a clear assertion that the phase out of fossil fuels and scaling up of clean energy will be included in G7 Nationally Determined Contributions . The group reiterated its commitment to trebling renewables and doubling energy efficiency and proposed a sixfold expansion of electricity storage from 2022 to 2030 . ?

New research from the IEA focusses on the role battery storage plays in the transition. It shows that battery storage costs have declined by 90% in just over a decade - and could decrease by another 40% by 2030. While another new IEA report finds that the clean energy sector?contributed approximately $320 billion to the global economy in 2023 , representing 10% of?global GDP growth – and nearly one-third of the EU’s 0.5% GDP growth. ?

In South Africa solar power is taking a load off the national grid. In 2023, solar power was able to alleviate the energy supply shortfall by as much as 44%, preventing blackouts. ?

India has added over 18.5 GW of renewable energy capacity over the last fiscal year ending 31 March 2024. A record 7.1 GW of renewable capacity was added in March alone, with almost 90% of that coming from solar.?

And a swathe of recent announcements in the U.S. are set to accelerate power sector decarbonization further. A new EPA power plant ruling will require coal-fired power plants to cut or capture 90% of emissions by 2032 , if they want to keep operating past 2039. The Department of Energy (DoE) has announced funding for a new interregional transmission project and to connect Idaho’s wind projects to California’s grid. It comes alongside the DOE's first-ever roadmap to accelerate connecting more clean energy projects to the nation's electric grid, aiming to clear the backlog of clean energy projects awaiting connection. ?

Transport?? ?

First up, Hapag-Lloyd, a major German container shipping company, has won the first tender by Zero Emission Maritime Buyers Alliance (ZEMBA). It has committed to deliver services to ZEMBA members that cut GHG emissions over 90% compared to fossil fuel services, starting in 2025.?

Sticking with green shipping, Japanese shipping and container giant ONE has launched ONE LEAF+, a low-emission shipping service ?using low-emission alternative fuels derived from used cooking oils and a book-and-claim methodology.?

To road transport, and the European Parliament has approved stricter CO2 standards for trucks and buses , aiming for emission-free buses by 2035 and almost all trucks by 2040, pending approval from the European Council.?

Meanwhile Rizon, Daimler Truck's electric vehicle brand, will introduce its battery-electric Class 4 and 5 trucks to Canada before 2025 , with preorders available in June. The Rizon trucks are eligible for rebates of up to $75,000 through federal incentives.?

Latest from We Mean Business Coalition ?

In response to the?release of the conclusions ?(pdf) to the G7 Climate, Energy, and Environment Ministers’ meeting,?we issued an immediate response welcoming the communiqué.?As we now look to the G7 Finance Ministers’ meeting and Leaders’ Summit, see our G7 policy asks. ? ?

Our new joint research? with the Food and Land Use Coalition reveals the costs and benefits associated with tackling agriculture and land-use change emissions for businesses. Watch the launch webinar here . Luke Pritchard, Deputy Director of Nature Based Solutions also shared his insights on the journey towards a resilient and low-emissions food system in a new blog . ? ?

The SME Climate Hub, an initiative of the We Mean Business Coalition, created in partnership with the Exponential Roadmap Initiative and the UN Climate Change High Level Champion’s Race to Zero campaign, launched its 2024 annual survey. It finds that 44% of SMEs are prioritizing climate action at a higher rate. However, they need more support to take action. Read more about the news and download the full report .?

Finally, despite John Tyndall’s reputation as the first scientist to discover the greenhouse effect, Eunice Newton Foote got there first, three years earlier in 1857. Then, and now, women were?and are central to climate leadership. Read more on the legacy of 170 years of women in climate leadership from our CEO, María Mendiluce in Forbes. ?

Industry?

Building supplies company Ruukki Construction has, with partners,?unveiled the world's first building featuring fossil-free steel . Approximately 40% of the fa?ade of the industrial building at Tomaten in Sweden is made of green steel. ?

Meanwhile, Salzgitter AG launched its green steel brand SALCOS? at the Hannover Messe , offering CO2-reduced steel products labelled under the Low Emission Steel Standard (LESS) and accompanied by independent Product Carbon Footprint (PCF) certification. Last year, the?company ordered one of Europe’s largest green hydrogen plants ?to supply the program. ?

A startup has joined the race to find solutions to decarbonize cement, opening its first commercial scale project at one of the largest cement farms in the Western U.S..?Fortera’s solution will initially reduce carbon by ~10% only, but it can be scaled rapidly at a commercial level at any plant. Over the long run, Fortera believes it can reduce carbon emissions by 40-70% against commercial mixes, subject to additional testing and regulatory processes. ?

Meanwhile CemVision, a Swedish startup backed by Bill Gates’ Breakthrough Energy , has raised a €10 million seed round from Swedish and San Francisco-based investors, aiming to scale up production of its sustainable cement made from recycled industrial waste, following the signing of its first customer agreement with LKAB,?a large Swedish industrial company.?

Finally, the newly launched European Clean Tech Tracker from think tank Bruegel compiles publicly available data on clean tech innovation, manufacturing, and deployment trends in Europe. It aims to inform decision-making and public discourse on Europe’s green transition?

Built environment?

The IEA met representatives from 20 African countries last month in Paris to discuss clean cooking. According to the IEA, global access to clean cooking by 2030 would prevent an estimated 2.5 million premature deaths annually. Next, global leaders will meet again?on 14 May for the first-ever leaders’ summit dedicated to clean cooking access in Africa.?

T he Biden administration has finalized standards mandating the elimination of onsite fossil fuel usage for new federal buildings by 2030, with 90% cuts to emissions from new construction between fiscal 2025 and 2029. ?

Sticking with the U.S.,?in Austin and New York City, initiatives are underway to promote the adoption of geothermal heating and cooling systems in buildings. These aim to reduce CO2 emissions and lower energy costs, making use of new innovating drilling techniques to suit dense urban environments. ?

And across the Atlantic, the Irish government has announced a €500 million low-cost loan scheme for home energy upgrades , with the aim of achieving a minimum 20% improvement in the energy performance of buildings.?

Finance

JPMorgan, Citi, and RBC have reached agreements with New York City to disclose a new climate reporting metric outlining their ratios of clean energy to fossil fuel finance. The move follows shareholder resolutions aimed at ensuring their financing activities align with net-zero commitments.?

At the Petersberg Climate Dialogue in Berlin, Chancellor Olaf Scholz announced Germany’s plans to modify its bilateral debt relief framework to allow middle-income countries to benefit from climate investment. Also at the Summit, German Foreign Minister Annalena Baerbock said Germany would reaffirm its commitment to providing six billion euros annually in international climate finance to developing countries by 2025 , despite facing budget constraints. ?

Lastly, Kenya has joined South Africa and Rwanda in adopting a green finance taxonomy . The draft Kenya Green Finance Taxonomy, released by the Central Bank of Kenya in mid-April, will enhance the country's eligibility for green funds by providing guidelines for financial institutions to accurately categorize projects based on environmental impact, so as not to end up funding projects that harm the environment.?

Protecting and restoring nature??

Nestlé-owned Purina and commodities giant Cargill have partnered to implement regenerative agriculture practices in their corn and soy supply chains. The initiative will span more than 200,000 acres of farmland in the Midwest, and aims to reduce the carbon footprint of Purina's grain supply for its dry pet food products across North America by 40% over 3 years.?

Staying in the U.S., the Biden administration is supporting water conservation and climate goals by allocating funds for climate-smart desert-grown guayule rubber production in collaboration with Bridgestone tire company.?

Next to the UK, where retail giant Tesco has collaborated with bank NatWest to introduce a discounted finance scheme for its farmers , offering preferential rates to support their transition to sustainable farming practices.?

Lastly, the UK’s Ordnance Survey has upgraded its mapping services with detailed data layers to support biodiversity initiatives and meet England's Biodiversity Net Gain rules. Services also improve land cover information to aid environmental monitoring and policymaking. ? ?

Decarbonizing global supply chains?

BT has partnered with the UK Business Climate Hub to help SMEs reduce their carbon emissions by half by 2030 and achieve net-zero emissions by 2050. Drawing on the telecoms company’s experience working with small businesses, the partnership will provide practical guidance, tools, and resources tailored to SMEs’ sustainability journey.?

Henkel, the parent company of brands including Schwarzkopf and Dylon, has launched a new supply chain program in collaboration with Manufacture 2030 . The program aligns with its target to cut Scope 3 emissions by 30% by 2030 and achieve net-zero by 2050.? ? Lastly, Schneider Electric has launched its Materialize program to assist metals and minerals companies in reducing carbon emissions by their suppliers worldwide. It is part of their suite of supply-chain decarbonization programs aimed at mitigating Scope 3 emissions and transitioning value chains to renewable energy sources.? ?

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:?

• 8,164 companies working to cut their emissions in line with science through SBTi? ?
• 7,793 small and medium-sized enterprises working to cut emissions with the SME Climate Hub? ?
• 475 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+.? ?
• 129 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?

VCMI Carbon Integrity 101: Webinar Series – 16 May, 29 May ? ? 24hr NCS Summit – 14 May??

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

G7 Summit – 13-15 June????

Climate Week NYC – 19-25 September?

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?

?

?

? ?

?

?