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Today’s newsletter:
🔝Today’s Top Story: The Canadian government has introduced draft regulations aimed at capping greenhouse gas emissions from the oil and gas sector to 35% below 2019 levels.
📊 Today’s Data Point: Goldman Sachs Research projects that achieving net carbon emissions of zero by 2070 will require over $74 trillion in investment.
🌳 Climate Insider Intelligence: Notable Solutions and Initiatives from COP16.
Canada’s New Emissions Cap Balances Oil and Gas Growth with Climate Action
Emissions Cap and Economic Balance
The Canadian government has introduced draft regulations aimed at capping greenhouse gas emissions from the oil and gas sector to 35% below 2019 levels. This cap-and-trade system is designed to incentivize companies to reduce emissions without limiting production, thus promoting economic growth and maintaining sector competitiveness as global demand shifts toward cleaner energy sources.
Industry Profits and Decarbonization Investments
Canada’s oil and gas sector, which supports 400,000 jobs, has seen record profits in recent years, with post-pandemic figures surging from $6.6 billion in 2019 to $66.6 billion in 2022. The government is pushing for these profits to be redirected into decarbonization technologies such as carbon capture, ensuring emissions reductions align with economic stability and job creation.
Long-term Climate and Economic Impact
The cap on emissions is part of Canada’s broader climate strategy to cut national emissions 40–45% below 2005 levels by 2030. While fostering a low-carbon economy, these regulations aim to position Canada’s oil and gas industry as a competitive global player amidst the anticipated peak and subsequent decline of fossil fuel demand by 2030. Read More
Market Movers
- The UAE has committed to investing $54 billion by 2030 to achieve net-zero emissions by 2050, aiming to decarbonize its economy and expand its renewable energy and hydrogen capacity while reducing carbon intensity in its oil and gas sector by 25%. Read More
- Dutch startup SeaO2 has secured over €2 million in funding to advance its Direct Ocean Capture technology for CO2 removal from seawater, aiming to launch a pilot plant by 2025 with a target to remove one megaton of CO2 by 2030 and a gigaton by 2045. Read More
- Ampd Energy has raised $27.3 million in Series B funding, co-led by Kibo Invest and Openspace, to expand its deployment of smart battery energy storage systems into new markets and regions, having already reduced 69,000 tons of CO2 across seven countries and aiming to decarbonize heavy industries further. Read More
Innovation Spotlight
- Hydrogen gas is a promising clean energy source, but its safe and widespread use necessitates reliable detection methods, with tunable diode laser absorption spectroscopy (TDLAS) showing potential despite challenges in detecting low hydrogen concentrations due to its weak infrared absorption. Read More
- A new study reveals that bio-based materials, despite being promoted as eco-friendly alternatives to conventional plastics, can pose greater health risks to crucial species like earthworms, showing higher mortality and adverse effects compared to polyester microfibres, underscoring the need for thorough testing of new materials before widespread use. Read More
- ADNOC and Omani climate tech firm 44.01 are advancing their carbon mineralization project in Fujairah, where a successful pilot demonstrated CO2 capture and permanent storage in peridotite rock formations, showcasing a scalable solution for carbon emissions reduction. Read More
Policy Pulse
This section includes global updates on climate change policy, governance and regulation.
Coca-Cola is looking for moonshots to help it reach net zero goal.
To achieve its 2040 net zero goals, Coca-Cola Europacific Partners, through CCEP Ventures, is shifting from traditional investments to funding early-stage, experimental technologies that may not yet exist or be commercialized, emphasizing the need for pioneering innovations over incremental improvements.
Why it Matters: This approach matters because it underscores the necessity for transformative innovations to effectively combat climate change and meet ambitious sustainability targets in a rapidly evolving technological landscape. Read More
Today’s Climate Data Point
Goldman Sachs Research: Investment Needs for Net Zero Emissions by 2070
Goldman Sachs Research projects that achieving net carbon emissions of zero by 2070 will require over $74 trillion in investment, a substantial increase from their previous estimate of $62 trillion. This report emphasizes that while limiting global warming to 1.5 degrees Celsius is increasingly unlikely, keeping it under 2 degrees remains possible.
Key Findings:
Investment Breakdown: The estimated $74 trillion investment translates to $1.5 to $2 trillion annually through 2070, encompassing diverse opportunities including:
– $7 trillion for power networks
– $5.1 trillion for energy storage
– $3.7 trillion for electric vehicle infrastructure
– $9.3 trillion for industrial carbon neutrality
– $1.3 trillion for green hydrogen production
Technology Adoption Trends: The pace of electric vehicle adoption has accelerated, especially in China, alongside rapid advancements in solar power manufacturing. In contrast, clean hydrogen and carbon capture technologies have lagged behind earlier forecasts.
Emissions Overview: Global carbon dioxide emissions from 2021 to 2023 exceeded previous models by 6%, driven by power generation, agriculture, and transport. Only building emissions decreased due to low-carbon tech adoption.
Decarbonization Scenarios: Achieving net zero by 2050 would require drastic measures, including retiring coal plants by the early 2030s and fully electrifying auto sales by 2035. A 2070 target necessitates infrastructure investment of 1-1.5% of global GDP annually, with implications for stranded costs and adapting to climate impacts.
Renewable Power Investment: Nearly $30 trillion is anticipated for renewable energy, with $11.1 trillion for solar, $9.5 trillion for onshore wind, and $4 trillion for nuclear power. Power generation must triple by 2070 to meet net zero goals.
Industrial Emissions Challenges: The report highlights that industrial emissions, particularly in steelmaking and cement production, pose significant decarbonization challenges. Innovations in clean steel processes and carbon capture technologies are critical for addressing these emissions.
Conclusion: The path to net zero emissions is complex, necessitating a multi-dimensional approach that integrates renewable energy, clean hydrogen, battery storage, and carbon capture technologies. Goldman Sachs underscores the importance of evolving the decarbonization process to effectively tackle climate change.
Climate Insider Analysis: Goldman Sachs Research’s updated projections reveal the monumental investment required for a sustainable energy transition. The focus must shift to a diverse strategy that embraces various technologies while addressing the urgent need for enhanced infrastructure and industrial emissions reductions. Achieving net zero by 2070 is feasible but requires immediate, coordinated actions across sectors. Read More
Climate Insider Intelligence: Notable Solutions and Initiatives from COP16
Image Credit: Environmental FinanceCOP16, held under the compelling theme “Peace with Nature,” marked a pivotal moment for biodiversity as nations united to operationalize the Kunming-Montreal Global Biodiversity Framework. From a transformative roadmap for implementation to the spotlight on Indigenous leadership, this summit showcased ten groundbreaking initiatives aimed at reversing biodiversity loss by 2030. Explore how Nature-Based Solutions are reshaping climate strategies, the role of high-integrity carbon markets, and commitments to financial support for developing nations. Join us as we dive into insights from prominent leaders and organizations, setting the stage for an integrated approach to biodiversity and climate action that champions sustainable global development. Read on for key takeaways and innovative solutions driving real change! Read More
