The Slog

With new cases of 'false sustainability' claims in the woodwork or under investigation. Pausing to take the highlights off last year is something worthy of note.

Recently, I've gone back to the Paris Agreement and looked at the tangibility of those outcomes in a study. While bleak might be the proper adjective, it cannot be denied that money is still pouring into more sustainable/green projects and mechanisms.

Governance

Continued Airline Pressure

Airlines globally are facing increased scrutiny amidst the backdrop of the probe into Boeing. Air France, Dutch KLM and Lufthansa's Brussels Airlines are among 20 airlines being investigated by the E.U. for potential misleading greenwashing practices.

At this stage, the E.U. has stated it will not disclose the names of which other airlines are under investigation as they are at the preliminary stage of the investigation.

The broadness of the investigation focuses on the E.U.'s statement - stating 'airlines need to make clear to what extent that the CO2 emissions caused by a flight could be offset by climate projects or through the use of sustainable fuels can be substantiated based on sound scientific evidence.'

Continued strong focus on company messaging has been the E.U. mandate for several years, even if it is just regarding messaging around business activities. In this instance, the well-documented pollution caused by air travel and the sustainable messaging airlines have used to counteract this.

Lululemon Problems

The Canadian enforcement agency has launched an investigation into the athletic clothing company. Alleged 'misleading green claims' being the focus of the investigation.

The investigation follows and was likely inspired by a complaint by an environmental sustainability-focused non-profit. It outlines a series of alleged 'false representations', the majority of which come from the firm's website and the "Be Plant" movement.

Energy

Renewable Energy Growth

Global electricity rose to around 30% last year, with growth from wind and solar exceeding that of fossil fuels. It is set to increase this year, according to Ember (energy think-tank).

This is mainly due to the increases above in solar and wind power. Reportedly, solar energy will add more than twice as much new electricity generation as coal in 2023.

Even still, at points during 2023, fossil fuels accounted for as much as 82% of electricity generation.

Corporate

Microsoft Signs the largest Carbon Removal deal

The tech giant and Swedish energy company Stockholm Exergi announced a 10-year offtake agreement. The latter provides Microsoft with more than 3.3 million tonnes of carbon removal certificates from its planned bio-energy with carbon capture storage.

The Swedish energy firm received an environmental permit for its BECCS facilities earlier this year. It aimed to bring together a bioenergy-based combined heat and power plant fueled by residues from forestry, sawmill and pulp/paper production.

A carbon capture and storage process captures CO2 in the plant's flue gases, then cools and compresses it into liquid form for transport and permanent storage in sedimentary bedrock below the North Sea floor, where the liquid CO2 mineralises over time.

It should be worth noting that Stockholm Exergi aims to reach a final investment decision on the BECCS plant in Q4 of this year, with construction of the carbon capture unit, liquefaction and intermediate storage planned to begin 2025.

Deliveries of carbon removal certificates to Microsoft are anticipated to start in 2028.

With still some way to go yet as to the whole pushing and finalisation of this deal, it marks a vital step forward for the mass shift in 'carbon balancing'. Whilst receiving criticism in the past, the mass effort from firms to at least balance out their ledger is being heralded as a significant positive step forward.

Honda's $11 Billion E.V. Investment

The car manufacturer has announced its plans to build a comprehensive E.V. value chain based in Canada, with ambitions to strengthen its E.V. supply system and capabilities to prepare for a future increase in E.V. demand in North America.

This announcement follows Honda's movement to aggressively push its electrification plans, including goals to make battery-electric and other electric vehicles represent 100% of its vehicle sales by 2040 - following targetted increases every five years.

Opinion

May 2024, sometimes it's tricky to find the content that will add the most significant value to readers and that in of itself is something to talk about. With financial years coming to an end, Summer becoming those who haven't been away yet, and a future of regulation and scrutiny is cause for raised eyebrows when it comes to wrapping things up.

So, to keep things simple and not press something unto its end, we're seeing our natural June / July slowdown. Projects are being implemented for next year, and rate cuts across the E.U. are prompting some form of optimism in already inflated markets.

Perhaps the most interesting things to come are political/election-wise, with the U.K. set to decide before August along with a few other nations - the sustainability-linked policies for the incumbent parties are where the focus will be.