10 November 2022

The Nordic's climate targets tightened after EU negotiations

On 8 November, negotiators from the EU Parliament and the Council of Ministers agreed on greenhouse gas emission targets for almost all member states. Negotiators agreed to increase the mandatory EU-level greenhouse gas reduction target for 2030 from 30% to 40% of the 2005 level. Each member state must reduce its emissions by 10%-50%. For many countries, especially in Eastern Europe, this means at least double the previous target set. The reduction targets apply to road transport, building heating, agriculture, small industrial facilities and waste management, which together account for around 60% of the EU's total emissions.

Under the agreement, Sweden must reduce its emissions by 50% compared to 2005 levels, up from the previous target of 40%. Finland and Denmark have also raised their 2030 emissions reduction targets to 50%, compared to the previous target of 39%. Jessica Polfjärd (M), Sweden’s responsible negotiator in the EU Parliament, is satisfied with the new changes and is confident that Sweden will meet its targets. However, environmentalist and EU Member of Parliament, Pär Holmgren, does not believe that the agreement is scientifically sound or sufficient to fulfil the Paris Agreement. On the contrary, he would like to see a 55% reduction in emissions, especially in agriculture. 

Europaportalen

Halten Bulk receives NOK 142 million in Enova support for hydrogen vessels

Halten Bulk AS has received NOK 142 million in support for the construction of two hydrogen vessels. However, in order to reduce investment costs, Halten Bulk plans to start with hydrogen internal combustion engines and later retrofit them with fuel cells. The two vessels will operate throughout the Norwegian coast and will bunker hydrogen from the five new production facilities to be built by 2025. But until hydrogen is commercialised in several European locations, they rely on the use of marine gas oil. With this commitment, Enova has now supported ten vessels that use hydrogen.

NTB

Odfjell Oceanwind and Source Galileo Norge partner to develop offshore floating wind power

Odfjell Oceanwind and Source Galileo's Norwegian subsidiary, Source Galileo Norge AS, have signed a Memorandum of Understanding to collaborate on the development of floating wind farms using Odfjell Oceanwind’s technology. The partnership targets wind farms for the electrification of oil and gas installations, the Utsira Nord subsea development, and selected floating wind farms in Europe. The partnership will apply for a seabed lease at Utsira Nord, a project called UtsiraVIND, which will use Odfjell Oceanwind's solutions and suppliers for the industrial production of cost-competitive floating offshore wind turbines.

Sourceenergie

COP27

US coal phase-out plan meets divided response at COP27

US climate envoy John Kerry proposed at COP26 in Egypt to create a system to help finance the phase-out of coal power by selling carbon credits to polluting companies. Kerry said fossil fuel companies would not be allowed to buy carbon credits under the drafted Energy Transition Accelerator (ETA) plan. The proposal comes at a time when countries are scrambling to finance the transition to clean energy and developing countries are asking for financial support from rich countries. ETA aims to transfer private sector funding from companies to the energy transition in developing countries, which would complement other sources, such as government and donor funding. Credits associated with emission reductions in the power sector could be generated by the state and purchased by companies under pre-purchase agreements, which would create "predictable financing streams to reduce risk and leverage other forms of financing". But key aspects of the scheme, such as when companies could buy credits and how the system would be regulated, have yet to be determined. Critics say companies should focus on reducing emissions, rather than compensating them with relatively cheap credits.

FT

Should China pay?

Finger pointing on who pays out to climate victims continues. The US' John Kerry has hinted China, now the (distant) second biggest historic emitter in the world, should chip in. China's Xie Zhenhua told a press briefing Kerry had not asked him directly during their informal meetings. Warning against reopening the Paris Agreement, Xie said China made voluntary contributions through south-south cooperation and was under no obligation to do more. "We hope.... that we can set up this new mechanism and then we can discuss how to resolve it in a more in depth way," said Xie.

What we're reading

• The Paris Agreement Is Working … for Now (The Atlantic)
• US beats EU as magnet for green investment, says Iberdrola (Financial Times)
• Spain's Iberdrola to invest $47 bln in energy transition in 2023-25 (Reuters)

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