Dear reader,
112 senior executives and CEOs from the World Economic Forum’s Alliance of CEO Climate Leaders #1 have sent an open letter to world leaders ahead of the UN Climate Change Conference COP29 in Baku, Azerbaijan.
Among the business leaders were the chairmen and CEOs of IKEA, Volvo Cars and AstraZeneca, who called on governments to promote the case for green investment by global companies (source Financial Times).
The open letter, in which the Alliance expresses its support for climate action, comes at a time when disagreement over corporate climate efforts has caused division.
The Alliance represents 12 million employees and $4 trillion in revenue. From 2019 to 2022, the total emissions of Alliance members were reduced by 10 per cent, the World Economic Forum reports. In the same period, revenues increased by 18 per cent.
Many international companies have started to scale back their emissions targets, blaming governments for not providing enough standards and financial support for green technologies and energy. ‘Developing countries need up to 5.9 trillion dollars in climate finance by 2030, for both mitigation and adaptation. The New Collective Quantified Goal must be significantly increased to support developing countries that are disproportionately affected by climate change,’ the business leaders write in the letter.
Jesper Brodin, chief executive of the main operator of IKEA stores, said the letter’s signatories wanted governments to set ambitious targets and ‘remove some of the barriers for industries and companies to make the investments’, according to the Financial Times.
‘We need more interaction, more support and more co-operation from policy makers around the world to enable and accelerate investment,’ Brodin said. In their letter, the business leaders argued in favour of carbon pricing, the development of high-quality carbon markets and the removal of fossil fuel subsidies.
‘The gap between the [companies] that are on the train to the new economy, the smart economy, and those on the platform is widening,’ said Brodin. ‘It’s not always easy because it’s a very disruptive development… [but] there’s a very large group of companies from all sectors that have jumped on the bandwagon and are adapting or investing and taking advantage of the new economy.’
The authors added that regulators and policymakers must remove the barriers that prevent countries from meeting the commitments made at COP28 to double energy efficiency and triple renewable energy by 2030, as well as provide more financial and regulatory support for new green technologies.
‘We call on governments to improve their [Nationally Determined Contributions (NDCs)] and international cooperation to close the ambition gap: The global stocktake shows that the NDCs only envisage an emissions reduction of around 5% by 2030, which is far below the required 43%. #2 The NDCs should include clear transition plans that provide businesses with the transparency they need to invest and turn them into national roadmaps for growth, competitiveness and a future green labour force,’ the letter states.
#1 https://www.weforum.org/agenda/2024/10/alliance-of-ceo-climate-leaders-cop29/
#2 https://unfccc.int/documents/637073
In its latest report ‘Renewables 2024’, the International Energy Agency (IEA) states that in order to achieve international climate targets, not only must the expansion of renewable energies be accelerated, but the introduction of sustainable biofuels and e-fuels must also be significantly accelerated. As these fuels are still more expensive than their fossil counterparts, their share of the global energy supply will remain below 6 % in 2030. The report is in analogue form.
Join us at the 22nd International Congress ‘Fuels of the Future’. More under: https://www.fuels-of-the-future.com/en/presse/press-releases/fuels-future-2024-registration-and-programme-online-now
The German Aerospace Centre (DLR) is currently building the world’s largest research facility for the production of electricity-based fuels, known as electrofuels or e-fuels. The technology platform for power-to-liquid fuels, or TPP for short, in Leuna, Saxony-Anhalt, will optimise e-fuels and further develop technologies and processes for their production on an industrial scale. The Federal Ministry for Digital and Transport Affairs (BMDV) has subsidised the construction of the plant with around 130 million euros. Further funding is earmarked for research operations, which are scheduled to begin in 2028. https://www.dlr.de/en/latest/news/2024/construction-begins-on-technology-platform-for-power-to-liquid-fuels-tpp
A US court has ordered oil company Phillips 66 to pay USD 604.9 million for allegedly stealing confidential data, proprietary strategies and business information that Propel had developed over 13 years, costing Propel more than USD 200 million. According to court documents, Propel and Phillips 66 conducted due diligence in 2017 in connection with a proposed acquisition of Propel by Phillips 66. Phillips 66 extended the due diligence to eleven months, during which Propel disclosed its proprietary strategies and data under a non-disclosure agreement and was actively building a new integrated renewable fuels business for Phillips 66 when Phillips 66 abruptly terminated the deal without explanation on 24 August 2018. https://www.reuters.com/business/energy/phillips-66-hit-with-6049-mln-us-verdict-fuel-trade-secrets-case-2024-10-17/
Mercedes announced that they have successfully run their season on HVO100 biofuel. They achieved 98% coverage for racing and marketing trucks and generators and saved more than 500 tonnes of CO2e. In collaboration with title and technical partner PETRONAS and its logistics partners, Mercedes has set itself the goal of expanding the use of biofuels during the nine European races in 2024. https://www.mercedesamgf1.com/news/team-powers-european-season-using-sustainable-hvo100-biofuel
Uniper and a major international industrial gas producer will begin supplying an initial 25 GWh per year in 2025. This volume will triple to 75 GWh from 2027 until the end of the contract in 2033. The green electricity supplied will accelerate the decarbonisation of a large German industrial region. Specifically, it will be used to produce green hydrogen, according to Uniper. https://fuelcellsworks.com/2024/10/10/clean-energy/uniper-supplies-green-hydrogen-power-to-major-international-industrial-gas-producer-to-boost-energy-transition-in-germany
A project to convert brewery waste into high-quality bioplastics has started its work. The POLYMEER initiative, funded by the HORIZON programme of the Circular Bio-Based Europe Joint Undertaking, aims to recycle brewery spent grains, a fibre- and protein-rich brewery waste, into new bio-based polymers, copolymers and polymer blends for films in agriculture, textiles in the automotive industry and tertiary packaging films for industrial purposes. https://www.utwente.nl/en/tnw/news/2024/10/1784553/polymeer-launches-initiative-to-convert-brewery-waste-into-high-quality-bioplastics
DN AGRAR Group, Romania’s largest integrated dairy farm, and BSOG Energy, an energy company specializing in the development of biomethane production projects in Romania, owned by Black Sea Oil & Gas, signed a cooperation agreement for the largest biomethane production project in Romania, with a total capacity of up to 15 MW. DN AGRAR will supply raw materials for biomethane production under a long-term contract to ensure the sustainability of the project, and BSOG Energy will develop the necessary infrastructure. https://www.romania-insider.com/dn-agrar-bsog-biomethane-facility-ro-oct-2024
Polish chemical manufacturer Qemetica Soda Polska has received a € 23 million grant from the National Eco Fund to convert a coal-fired boiler at its soda production plant in the centre of Inowroclaw to biomass. The funding, provided by the National Fund for Environmental Protection and Water Management, will enable energy production from biomass, which will reduce coal consumption in the Qemetica Group’s most energy-intensive and important business – soda production. https://qemetica.com/en/about-us/news
In India, the government has advanced its target for 20% blending to 2025, reinforcing its commitment to sustainable energy. The Minister of Petroleum and Natural Gas says discussions have already started to develop a roadmap for the future, post the attainment of the 20% blending target. This roadmap will guide the country’s next steps in its pursuit of energy sustainability and self-reliance. The ethanol blending percentage rose from 1.53% in 2014 to a projected 15% by 2024. https://www.iea.org/policies/17007-roadmap-for-ethanol-blending-in-india-2020-25
The Brazilian Development Bank (BNDES) has approved financing worth R$500 million for Coamo Agroindustrial Cooperativa to build a corn ethanol production plant in the city of Campo Mourão (PR). With resources from the Climate Fund, the plant will have the capacity to process 1,700 tons of corn per day and produce 765,000 liters of ethanol per day. https://revistacultivar.com/news/BNDES-approves-R%24500-million-for-corn-ethanol-plant-in-Paran%C3%A1
Nestlé Purina PetCare launched its first delivery with a hydrogen-powered electric semi-truck this week. On its first trip, the truck will transport Purina products between three California cities: Stockton, Maricopa and Modesto. ‘We are constantly looking for new opportunities within our company and through partnerships that will help us achieve our sustainability goals,’ said Travis Krous, Senior Director of Supply Chain Operations. https://www.energytech.com/emobility/article/55234526/nestle-purina-petcare-debuts-use-of-hydrogen-fuel-cell-electric-semi-truck-in-california
The Finnish Ministry of Economic Affairs and Employment granted investment aid totalling almost EUR 45 million for 12 projects as part of the national economic recovery plan (RRP). In addition, a decision supported by the Ministry’s Finance Committee on 3 October granted EUR 28 million to Nordic Ren-Gas Oy for a major demonstration project for new energy technologies. https://valtioneuvosto.fi/en/-/1410877/eur-72.6-million-in-investment-aid-granted-to-13-clean-energy-projects
A consortium of a Japanese university and companies are working with an Australian state government on a project to mass produce sustainable biofuel for aircraft. The Tokyo University of Agriculture and Technology, which has expertise in growing pongamia oil trees, plans to begin a demonstration trial in Australia’s Queensland state in March 2025 with a cash injection of up to $674 million, according to the report. https://bioenergybusiness.com/japanese-university-and-businesses-partner-with-australian-state-for-sustainable-aviation-fuel-project/
The Bahía Energía Group plans to invest around 200 million dollars in the first bioethanol plant in Buenos Aires and the first sustainable aviation fuel (SAF) plant in the country. The project will be carried out through its company Biosanfe, which will build an industrial complex for the production of biofuels (ethanol, SAF and biomethanol) from corn. It is expected that 600 skilled jobs will be created during the construction phase and around 180 afterwards. https://advancedbiofuelsusa.info/us-200-million-investment-bah-a-blanca-will-have-the-first-sustainable-fuel-plant-for-airplanes