18 November 2022

Pourmokhtari “ready to resign” should she not support Sweden’s climate policy

It’s been a long and tough week for the Swedish Minister for Climate and the Environment, Romina Pourmokhtari (L). During an interview at COP27 in Sharm el-Sheikh yesterday, the Minister responded to the critique voiced in Sweden recently stating that the new Government’s climate policy will risk leading to Sweden not reaching its climate goals for 2030. However, according to Pourmokhtari, Sweden still has the ambition to reach its set climate goals and she remains optimistic that the country will be successful in doing so. So optimistic, that should the Government’s climate policy start to change due to other governmental parties steering towards a different direction, she would resign. “If I don’t stand for the policy that we are going to push through, then it would be dishonourable for me to remain in my position,” stated Pourmokhtari. 

SvD

Echandia signs agreement with Molslinjen for two new electrified ships’ battery systems

Echandia has been selected as the supplier of battery systems for Danska Molslinjen's two all-electric vessels. The two ferries will start operating on Alslinjen and Samsølinjen in 2024. The total capacity of the battery systems is approximately 7 MWh. The ferries, designed by OSK-ShipTech for Molslinjen, will be built by Cemre Shipyard and will be delivered in 2024. Echandia's battery systems have a high installed utilisation rate, so the size and weight of the overall system results in a significantly lower overall carbon footprint. The new vessels have a passenger capacity of 600 passengers and 188 cars and an overall length of 116.8 metres. The ships are prepared to navigate autonomously between ports, docking and charging automatically at terminals. The energy storage of 3.1 MWh and 3.8 MWh respectively will be fully charged in 20-25 minutes. 

Press Release 

H&M to cut Scope 1, 2 and 3 emissions by 56% in absolute terms by 2030

In a bid to achieve its goal of net zero emissions by 2040, Swedish clothing company H&M has announced at COP27 its interim target to reduce the group’s absolute scope 1 and 2 emissions and scope 3 emissions by 56% by 2030, respectively. The company has also launched an internal carbon price initiative, which is a consisting tool within the H&M Group to drive behavioural change within its buying, design, and merchandising teams as well as in production and logistics, that steers toward the purchase of low-carbon materials for its products and the selection of low-emission production units. The company this year also signed a multi-year carbon removal agreement with direct air capture firm Climeworks, which covers the removal of 10,000 tonnes of CO2. 

Fibre2fashion

SSAB begins consultations prior to transition to fossil-free steel production in Luleå

In January 2022, SSAB's Board of Directors made the strategic decision to fundamentally rebuild the Nordic sheet metal production system and accelerate its green transition. SSAB's plan is to build a new integrated electric steelmaking plant, rolling mill and deep processing, a so-called mini-mill, in Luleå, thus ending the existing coke plant, blast furnace and steel mill operations around 2030. The new electrical steel plant will be built in SSAB's existing industrial area in Svartön. Production will be maintained at the current capacity level, with the possibility of expanding the product range. The consultations concern the change of location, scope and design of the operation, the potential environmental impact and environmental consequences of the operation, as well as the content and design of the impact assessment. It is expected that the new operation will have a significantly lower impact than the existing operation on the vast majority of environmental aspects assessed.

Metal Supply

Eviny and Hafslund invest in energy platform Volte

Two of Norway's largest energy companies, Eviny and Hafslund, are investing in energy technology company Volte, with each holding a 50% stake. The shareholder partnership is still subject to approval by the Norwegian Competition Authority and is expected to be completed in the New Year. Volte was founded in 2019 as a simple corporate power company with a clear and transparent agreement. Volte is an energy technology company that leverages opportunities in energy data to build analytics, products and services that help companies save on electricity use.  Hafslund saw the appeal of Volte's business model and is committed to building a similar business. 

NTB

Eolus Vind presented losses in 3Q22

Eolus Vind AB, a renewable energy design company in Northern Europe, reported a loss in the third quarter after a drop in turnover. Turnover fell from SEK 691 million to SEK 111 million. Operating profit showed a loss of SEK 8 million and profit before tax resulted in a loss of SEK 11 million. During the period, Eolus secured SEK 1.5 billion in funding by signing a credit agreement with Swedbank for a total of SEK 1.2 billion and extending the credit agreement with Svensk Exportkredit to SEK 300 million. Meanwhile, in October, Eolus sold its solar and battery storage project in Arizona, USA, with an expected initial output of 750 MWac of solar cells and battery storage. Commissioning is scheduled for 2025, and Eolus has received a down payment of USD 12 million. In terms of the Tidö Agreement, Eolus CEO Per Witalisson also said the new government's decision to reduce grid-connected subsidies for offshore wind will have no significant impact on its projects. The company's projects are located close to land and shallow waters, and they are already planning to pay for connection costs.

Svenskverkstad, Di

COP27

EU sceptical about a climate agreement in Egypt

The EU is turning up the heat at the COP27 climate summit after the Egyptian hosts so far failed to mediate a compromise between the developing world and high-income countries on how to fund measures to protect countries most at risk from climate change. Jan Dusík, the Czech Deputy Minister for Climate Protection, one of the EU’s lead negotiators, said that some of the wording in the latest document released yesterday morning by the Egyptian COP presidency was “very difficult for us to live with” and that concrete language on a phase down or phase out of fossil fuels was “not there … We have made clear to the presidency that time is running out and we are worried,” adding he was concerned that the final agreement would show less ambition to halt the climate crisis than there was at last year’s COP in Glasgow.

The G77 group of 134 developing countries plus China has put forward a proposal for the two dozen richest countries in 1992 to pay for a fund to repair climate change-induced damage. But the EU, which has previously been opposed to a dedicated so-called loss and damage fund, came out all guns blazing to say that while it could support a fund, any such financing should be calculated on the basis of the economic and emitting state of countries in 2022, not 1992 — a less than veiled shot at China, now one of the world’s largest polluters with vastly more economic heft than it had 30 years ago. (Financial Times)

Future COP hosts

The UAE will host COP28 from 30 November to 12 December next year, according to a draft decision for approval in Sharm el-Sheikh. Eastern Europe is next in line. Lula’s opening for Brazil comes in 2025. Australia could follow.

EU proposes fossil fuel-funded UN climate loss and damage facility, with shipping and aviation contributing

The EU broke a longstanding deadline at UN climate talks on Thursday by proposing to establish a loss and damage fund for the most vulnerable countries, using money that could be raised partly by a levy on aviation, shipping, or fossil fuels (Carbon Pulse).

Vietnam may also join Just Energy Transition Partnership

Vietnam is set to follow Indonesia and South Africa with a climate financing package of at least $11 bln to shift its economy away from coal and boost the rollout of renewable energy sources. Vietnam and its donor countries, led by the EU and the UK, are aiming to announce the Just Energy Transition Partnership funding deal – which could total as much as US$14 bln – at the EU-ASEAN summit on December 14. (Business Times)

What we're reading

• South Africa releases green hydrogen plan at cop27 summit (Seneca ESG)
• Saudi Aramco leads Riyadh’s $30bn investment push into South Korea (Financial Times)

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