US weighs solar tariffs, unsettling industry

  • Market: Electricity, Emissions
  • 01/04/22

The US Department of Commerce has opened an investigation into whether solar modules imported from Cambodia, Malaysia, Thailand and Vietnam are circumventing duties. California-based panel assembler Auxin Solar filed a petition in February, alleging imports from these countries use components from China, allowing the Chinese components to avoid duties. The four countries account for over half the US' non-Chinese solar cell imports, according to engineering services group Clean Energy Associates. Because it could mean retroactive tariffs, the probe will slow solar growth before the case is even decided, industry groups say.


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28/03/24

Stalling climate finance an energy security risk : WRI

Stalling climate finance an energy security risk : WRI

London, 28 March (Argus) — The "best bet" to achieving global energy security is through mitigation funding and multilateral cooperation, according to the World Resources Institute (WRI). WRI highlighted that governments are funding more domestic renewable energy projects but have increased oil and gas production in the name of "energy security" at home in the years following the Russia's invasion of Ukraine. The recent rebrand of energy transition funding to energy security funding has allowed some developed nations to justify domestic oil and gas licences and drag their feet on multilateral financial commitments. This is causing "real worry" among climate-vulnerable developing nations, WRI chief executive Ani Dasgupta said. He said that although the initial "shock" to the world's energy markets after the invasion of Ukraine "quickly went away", it has triggered "real worry among poorer countries that when push comes to shove, it won't be an even game, or have a fair outcome." Developing countries have long complained about the lack of access to climate funding. Richer nations have only recently met the $100bn/yr target in climate finance to developing countries agreed in 2009, while discussions on setting a new climate finance goal for 2025 at Cop 29 in Baku in November could prove difficult. President of the Republic of Congo (Brazzaville) Denis Sassou-Nguesso said last year that the $100bn/yr in climate financing to developing countries promised by rich countries "never reached us", adding that the annual UN Cop climate conferences have become little more than a talking shop. "Just after the invasion of Ukraine, every country started to think about energy security," Dasgupta said. "In theory, good things could have happened, countries could have concluded that their best bet to getting energy security is by going renewable". But it was not the case in key consumer countries or regions, Dasgupta pointed out. China bought the majority of Russian gas following the EU's withdrawal, he said, and has since upped production at coal-fired power stations despite an "extraordinary" acceleration towards renewables set for 2023-28, according to Paris-based energy watchdog IEA . In Europe, the UK and Norway continue to award new oil and gas licences . "In the US, the fossil fuel lobby argues that the best route to energy security is to invest more in fossil fuels". But the best route is to invest in more renewables, he said. "Even if the US produces a large amount of oil and gas, it is still a traded commodity, and so you have to pay a price for it that is set globally." The US special presidential co-ordinator for energy security Amos Hochstein has also suggested in September that a widening climate finance gap could ultimately threaten global security. "We have seen the percentage of dollars spent on the energy transition outside the OECD, in developing and middle income countries actually go down instead of up…" By Madeleine Jenkins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Australia to delay mandatory climate reporting to 2025


28/03/24
News
28/03/24

Australia to delay mandatory climate reporting to 2025

Sydney, 28 March (Argus) — Australia's biggest companies will likely face mandatory climate reporting from 1 January 2025, six months later than originally planned, according to a bill the Australian federal government introduced in parliament. Under the revised proposal, the country's largest companies and financial institutions will need to start disclosing their climate-related risks and opportunities, including scope 1 and 2 greenhouse gas (GHG) emissions, within their annual sustainability reports from 1 January 2025 instead of 1 July as previously intended . Scope 3 emissions disclosure will continue to be required from the second year of reporting. Companies will be arranged in three groups, with group 1 entities including companies meeting at least two of three criteria: more than A$500mn ($324mn) of annual revenues, over A$1bn of gross assets, 500 or more employees. Group 2 companies will have lower thresholds — above A$200mn of revenues, $500mn of assets and 250 employees — and will start reporting from the financial year starting on 1 July 2026. Reporting for group 3 entities — those with more than A$50mn of revenues, $25mn of assets and 100 employees — will begin from 1 July 2027. The 1 January 2025 start date might be pushed further to 1 July 2025, if the bill does not become law before 2 December. It will now be debated in parliament and needs to pass both houses, the Senate and the House of Representatives, before receiving royal assent. Its approval will support more investment in renewable energy as well as help companies and investors manage climate risks, the government said. Companies are currently not required to report their scope 3 emissions under Australia's National Greenhouse and Energy Reporting Act, which is used to measure and report GHG emissions and energy production and consumption. Scope 3 can include emissions within supply chains that occur inside or outside Australia, such as emissions from the combustion of Australian coal or LNG exported to other countries. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Japan’s Renova starts Miyagi biomass power plant


28/03/24
News
28/03/24

Japan’s Renova starts Miyagi biomass power plant

Tokyo, 28 March (Argus) — Japanese renewable power developer Renova started commercial operations today at its 75MW Ishinomaki Hibarino biomass-fired power plant in northeast Japan's Miyagi prefecture. The power plant is designed to consume an undisclosed volume of wood pellets and palm kernel shells (PKS) to generate around 530 GWh/yr of electricity. Renova originally targeted to start up the power plant in May 2023 but postponed the start-up multiple times. Renova has been forced to delay the start-up schedules at several of its power plants. It previously targeted to begin commercial operations of the 75MW Omaezaki biomass power plant this month but postponed it to July, as the final adjustment of boiler and turbine units is taking longer than expected. It delayed the launch of the 74.8MW Tokushima Tsuda biomass power plant in September before it began commercial operations in December 2023 . Japan imported 1mn t of wood pellets during January-February, up by 14pc from the same period in 2023, according to the finance ministry. PKS purchases fell by 24pc to 466,186t. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Oil transition plans inadequate for investors: Report


27/03/24
News
27/03/24

Oil transition plans inadequate for investors: Report

London, 27 March (Argus) — Oil and gas producers' energy transition plans are "insufficient for investors to accurately gauge transition risk", according to a report released today from investor initiative Climate Action 100+ and investor research group Transition Pathway Initiative (TPI). Several companies measured have net zero goals, but there is an "absence of disclosure on critical elements", which makes it difficult for investors to understand how companies will achieve net zero, as well as the transition risks posed. The lack of sufficient transition plans presents a "material financial risk", Climate Action 100+ said. The report assessed 10 publicly-listed oil and gas producers — European firms BP, Eni, Repsol, Shell and TotalEnergies, and North American companies Chevron, ConocoPhillips, ExxonMobil, Occidental and Suncor. The companies scored lowest against 'alignment' metrics, measuring if they are in line with the Paris climate agreement that seeks to limit global warming to 1.5°C above the pre-industrial average. "More disclosure is required on the central aspects of transition planning, including measures to neutralise emissions, and production forecasts", TPI found. Companies assessed failed to score on 87pc of metrics related to quantifying emissions cuts, and on 89pc of metrics related to future oil and gas production. Most North American firms assessed have stated they plan to lift output, the report noted. But "without acknowledging the impact of the transition on the core business, companies risk deploying capital that… accentuates the risk of assets becoming stranded", it said. The report flagged a stark difference between the two regions. "European companies provide substantially better disclosure, set more aligned targets and are investing more in climate solutions", it said. North American firms are "not planning to meaningfully diversify into low carbon energy production", while European ones are exploring a range of lower-carbon options, including biofuels, hydrogen and renewable power. The companies assessed are also not reaching for "easy wins" on methane abatement, with just two having "convincing strategies" on this, the report found. Of the 10 companies, seven have joined reduction initiative the Oil and Gas Methane Partnership, but "most companies have not set a methane emissions reduction target with a clear and specific base and target year." Investment is crucial for companies looking to decarbonise. A report this week from non-profit CDP and consulting firm Oliver Wyman found that more than half of corporations in high-emitting sectors said access to capital was "a key concern in decarbonisation efforts". Their report analysed data from 1,600 European companies, which reported via CDP's environmental disclosures programme. "This implementation gap between concrete business actions and stated climate goals persists despite most businesses reporting they have a transition plan and emissions reduction targets in place", CDP said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Australia softens fuel efficiency standard targets


27/03/24
News
27/03/24

Australia softens fuel efficiency standard targets

Sydney, 27 March (Argus) — The Australian federal government has agreed on draft legislation for its fuel efficiency standards for new passenger and light commercial vehicles, which will come into effect with reduced targets and later than originally proposed. The scheme will start on 1 January 2025 as planned by the government but manufacturers will not begin earning credits or penalties until 1 July 2025. This will enable it to prepare and test data reporting capabilities in partnership with the industry, the federal government said. Some sport utility vehicles, such as the Toyota Landcruiser and Nissan Patrol models, will also be recategorised as light commercial vehicles that will now have smoother targets compared with the government's preferred model released in early February. The government said this reflects recent adjustments announced by the US Environmental Protection Agency to its vehicle standards, which gave US auto manufactures more time to scale up the production of electric vehicles (EVs). Under Australia's proposed emissions standards, whose bill was introduced for a vote in parliament on 27 March, manufacturers will be set an average carbon dioxide (CO2) target for the range of vehicles they sell. Those will be lowered over time to mandate the sale of more fuel efficient, low or zero emissions vehicles. Companies that exceed their emissions targets will receive credits, which they might sell to less efficient manufacturers or use in future years. Those that fail to meet the requirement will need to make it up over the following two-year period, pay a penalty or acquire credits. The government's preferred model was criticised by the Federal Chamber of Automotive Industries (FCAI) as unreasonable , given the short timeframe for manufacturers to adjust their fleets. The FCAI welcomed the changes made by the government, although it said it would still need to review the draft legislation in detail to understand the impact to the industry and consumers. Associations such as the Electric Vehicle Council of Australia and the Climate Council supported the bill, with the former saying the "strong, ambitious standards" will drive a greater update of EVs. Charging boost Together with the bill, the federal government announced it will provide A$60mn ($39.2mn) to boost EV charging at Australian car dealerships. It said the standards will reduce greenhouse gas (GHG) emissions from new passenger vehicles by more than 60pc by 2030, while those from new light commercial vehicles will be nearly halved over the same period compared with a 60pc reduction originally. Environmental group Greenpeace said the final proposal is a meaningful effort to reduce transport pollution but it will achieve only 80pc of the emissions reduction originally planned for light commercial vehicles. "The decision to weaken the standards when it comes to light commercial vehicles will mean around 20pc more carbon pollution will be allowed by 2030 compared to the original proposal, so we expect the government will be looking at other options for reducing pollution from transport in order to meet their climate targets," Greenpeace said. Transport makes up 98mn t/yr or 21pc of Australia's total GHG emissions. By 2030 it is expected to be the largest source of emissions as the electricity sector decarbonises. Government data show that on average passenger cars in Australia emit at a rate 20pc higher than the US vehicle fleet. Passenger cars contribute 41mn t/yr of CO2 equivalent (CO2e), or 42pc of all transport emissions, with light commercial vehicles emitting 18mn t/yr CO2e or 18pc of total transport emissions. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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