[USA] GAO warns of growing threats to U.S hydropower

On March 30, 2023, the Government Accountability Office (GAO) released a report finding that four power marketing administrations (PMAs)—Bonneville Power Administration, Southeastern Power Administration (SEPA), Southwestern Power Administration (SWPA), and Western Area Power Administration (WAPA)—face increasing risks from climate change and must prepare for these vulnerabilities.[1] The four PMAs are run by the Department of Energy (DOE) and sell electricity generated from federal hydropower dams to public utilities, rural cooperatives, and Indian Tribes in over 30 states. These entities face risks to their operations, including reduced dam generation due to drought conditions and extreme heat, wildfires, and extreme storms. Reduced generation could raise power prices and reduce deliveries of low-emission hydroelectricity. Despite this, GAO found that two of the PMAs missed a DOE deadline to write assessments on the risks associated with climate change and develop plans to address them. WAPA and SEPA said that staffing issues contributed to the delay but that they would prepare them before the end of 2023.

[1] https://www.gao.gov/products/gao-23-106224?utm_campaign=usgao_email&utm_content=daybook&utm_medium=email&utm_source=govdelivery

[World] 23 Governments launch Mission Innovation 2.0 to achieve Paris Agreement’s goals

On June 2, 2021, during the Innovating to Net Zero Summit in Santiago, Chile, 23 governments[1], including the U.S. and Japan, launched Mission Innovation 2.0, the second phase of the Mission Innovation initiative.[2] The Mission Innovation initiative was launched alongside the Paris Agreement at the 2015 COP21 conference to make clean energy affordable by accelerating investment, collaboration, and innovation. Since 2015, member governments, collectively responsible for over 90% of global public investment in clean energy innovation, have increased clean energy innovation investments by $18 billion.

As a part of the initiative, each member will develop National Innovation Pathways to describe their plans to encourage innovation to meet their climate and energy goals up to 2030. Mission Innovation 2.0 will initially focus on three “missions” to scale up “clean” hydrogen, zero-emission shipping, and renewable power systems in various locations. First, the Clean Hydrogen mission will be led by Australia, Chile, the U.K., the U.S., and the European Union, and aims to make clean hydrogen cost-competitive by reducing costs to $2/kg by 2030 by increasing research. The mission also intends to develop at least 100 geographic hubs for hydrogen production, storage, and end-use by 2030. Second, Denmark, the U.S., and Norway, together with the Global Maritime Forum and the Maersk McKinney Moller Center for Zero Carbon Shipping, will lead the Zero-Emissions Shipping mission, with the goal of zero-emissions ships making up at least 5% of the global deep-sea fleet by 2030. Third, the Green Powered Future mission, led by China, Italy, and the U.K., aims to demonstrate that power systems in various locations will be able to integrate up to 100% renewable energy by 2030. These missions will be underpinned by a new “global Innovation Platform” that will strengthen confidence and awareness in emerging technologies and maximize national investment impacts.

[1] Austria, Australia, Brazil, Canada, Chile, China, Denmark, Finland, France, Germany, India, Italy, Japan, the Republic of Korea, Morocco, the Netherlands, Norway, Saudi Arabia, Sweden, the United Arab Emirates, the United Kingdom, the United States of America, and the European Commission (on behalf of the European Union)

[2] http://mission-innovation.net/2021/06/02/decade-clean-energy-innovation-mi-6/#_ftn1

[Japan] EU and Japan commit to a Green Alliance to accelerate the energy transition

The European Union (EU) and Japan announced on May 27, 2021, that they are forming a Green Alliance to accelerate decarbonization efforts across both economies.[1] The alliance was finalized during the 2021 EU-Japan Summit, where the two parties discussed global issues such as climate change. Both the EU and Japan have goals of becoming carbon-neutral by 2050, and the Green Alliance will help both parties achieve these decarbonization goals.

There will be five priority areas for the Green Alliance. (1) Achieve a cost-effective, safe, and sustainable energy transition by deploying low-carbon technologies like renewable energy, renewable hydrogen, energy storage, and carbon capture, utilization, and storage (CCUS). (2) Strengthen environmental protection by promoting sustainable, circular practices in production and consumption. The parties will also contribute to the global goal of protecting at least 30% of both land and sea to conserve biodiversity. (3) Increase regulatory cooperation and business exchange between the two parties to drive uptake of low-carbon technologies and environmental solutions. (4) Consolidate existing collaboration on research and development (R&D) on decarbonization, renewable energy, and the bioeconomy. (5) Maintain leadership on international sustainable finance to help unite on a definition of sustainable investments. In addition to these priority areas, the EU and Japan also agreed to work together to promote cooperation on climate action in developing countries.

[1] https://ec.europa.eu/clima/news/eu-japan-green-alliance_en

[Japan] Daigas Group Released its Carbon Neutral Vision to achieve the 2050 Carbon Neutrality Action Plan

On January 25, 2021, Daigas Group (Daigas, Headquarters: Osaka), Osaka Gas’s parent company, released its Carbon Neutral Vision (the Vision), as part of its contribution to the national goal of achieving carbon neutrality by 2050.

In the Vision, Daigas underscores the importance of the reduction of CO2 emissions, since technological innovation to achieve carbon neutrality will require significant time and tremendous social costs. The Vision lays out targets to achieve Daigas’ goals and action targets by 2030 as follows:

·       Increase its renewable energy deployment to reach a total of 5GW[1] (inside and outside Japan) by developing and owning their energy sources, as well as promoting procurement from others

·       Aim to increase Daigas’ renewable energy share to approximately 50% of the company’s domestic energy portfolio

·       Reduce annual CO2 emissions from 33 million tons to 10 million tons

Daigas has already contributed to a wide range of research and development activities on the latest technologies, including methanation and hydrogen production technologies. Based on the Vision, Daigas plans to 1) build a hydrogen energy network; 2) decarbonize the CO2 emissions of its gas business by utilizing methanation technology; and 3) reduce the CO2 emissions of its electric generation business by expanding the use of renewable energy. With its new Vision, Daigas will continue to accelerate research and development activities by promoting alliances with various industry-government-academia partner companies.[2]

[1] As of December 2020, the total amount of renewable energy sources that had already been developed was approximately 0.7 GW, including wind, solar, and biomass, both inside and outside Japan.

[2] https://www.osakagas.co.jp/company/press/pr2021/1291446_46443.html

[USA] Microsoft announces first investment from $1 billion climate fund

On July 21, 2020, Microsoft announced its first investment from a $1 billion climate fund aimed at investing in early-stage clean energy technology.[1] Microsoft announced the climate fund in January 2020 to support low-carbon technologies and achieve its goal of becoming “carbon negative”[2] by 2030.[3] The $50 million investment will go to Energy Impact Partners’ (EIP) global platform for innovation of new technologies. EIP is a New York-based investment firm that has served as a link between renewable energy startups and several of the U.S.’s largest utilities, including Southern Company and Xcel Energy. EIP manages about $1.2 billion in assets and has invested in a wide array of technologies such as smart home thermostats and software services for solar and gas pipeline projects. One of its notable investments was Greenlots, an electric vehicle charging software provider that was later sold to Royal Dutch Shell PLC. According to spokespeople for the Microsoft, the company will not take a direct stake in any startups as part of this investment, though it may take advantage of debt or equity if a startup was successful.

[1] https://www.bloomberg.com/news/articles/2020-07-21/microsoft-nike-unilever-announce-global-carbon-neutral-group

[2] “carbon negative” here means that Microsoft plans to reduce their carbon footprint to less than neutral (i.e. removing carbon from the atmosphere)

[3] https://www.microsoft.com/en-us/corporate-responsibility/sustainability/climate-innovation-fund

[USA] Biden outlines $2 trillion climate plan

In a speech on July 14, 2020, presidential candidate Joe Biden outlined his climate plan which seeks to invest nearly $2 trillion to boost renewable energy and rebuild infrastructure with the goal of achieving net-zero carbon emissions by 2050.[1] [2] The plan is the second piece of Biden’s new economic agenda (called "Build Back Better") which he first detailed on July 9, 2020.[3] Biden has described the plan as a “one-time” opportunity to reestablish the U.S. as an economic and political leader.

The plan calls for major investments in infrastructure, the auto-industry, transit, buildings, the power sector, housing, innovation, agriculture and conservation, and environmental justice. These investments would include electrifying government-owned vehicle fleets, creating a nationwide network of 500,000 electric vehicle (EV) charging stations, building 1.5 million energy efficient homes, retrofitting 4 million buildings, and decarbonizing electrical generation. Biden’s plan also emphasizes the importance keeping existing carbon-free energy provided by nuclear and hydropower while investing in new technologies like renewable hydrogen and advanced nuclear. According to Biden, the sweeping investments proposed in his plan would spur millions of jobs and would end carbon-based electrical generation by 2035.

[1] https://joebiden.com/clean-energy/

[2] https://www.npr.org/2020/07/14/890814007/biden-outlines-2-trillion-climate-plan

[3] https://joebiden.com/build-back-better/

[Japan] Japan Business Federation Launched the Challenge Zero Project

Amid concerns about climate change, the Japan Business Federation, also known as Keidanren, announced on June 8, 2020 that it had launched the Challenge Zero Project in order to accelerate the transition towards a low-carbon society. Keidanren is an economic organization that represents a membership comprised of 1,444 domestic companies, 109 nationwide industrial associations, and 47 of Japan’s regional economic organizations (as of April 1, 2020).

The Challenge Zero Project has been endorsed by over 130 participating companies and groups, ranging from energy companies and utilities to manufacturers, financial institutions, and retailers. Among them, some Japanese utilities and energy producers are part of the project: Tokyo Electric Power Company Holdings (TEPCO, Headquarters: Tokyo), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture), Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Prefecture), and Electric Power Development Company (J-POWER, Headquarters: Tokyo).[1]

Under the Challenge Zero Project, the member companies and groups have set their own goals to tackle a total of 305 innovation challenges. Challenges are different for each member, such as developing CO2 utilization technology, improving the efficiency of reusing Electric Vehicles’ (EV) batteries, etc.[2] Keidaren and participating entities aim to contribute to CO2 emission reductions by addressing these challenges.[3] [4]

[1] https://www.challenge-zero.jp/jp/member/

[2] https://www.challenge-zero.jp/jp/casestudy/

[3] https://www.keidanren.or.jp/policy/2020/052.html

[4] https://www.challenge-zero.jp/jp/about/

[USA] House Democrats release new proposal to address climate crisis

On June 20, 2020, Democrats in the House Select Committee on the Climate Crisis released a comprehensive proposal called the Climate Crisis Action Plan which establishes a goal of reaching net-zero greenhouse gas (GHG) emissions in the United States by 2050; directs the president to set ambitious interim targets to meet or exceed that goal; and calls for achieving net-negative GHG emissions after 2050.[1] The report recommends investments in infrastructure; investments in clean energy and decarbonization technologies; and decarbonization of the transportation and electricity sectors. The report does not directly recommend an end to natural gas fracking or coal-fired power. It also leaves the door open for carbon capture technology and nuclear power to play a role in a net zero-carbon grid.

The majority staff for the Select Committee previewed its draft policy recommendations with Energy Innovation: Policy and Technology LLC (Energy Innovation), a nonpartisan think tank. Energy Innovation modelled the emissions reductions and co-benefits from implementing a subset of the Select Committee’s recommendations. According to Energy Innovation, the Select Committee majority staff’s policy recommendations will set the country on a path to achieving net-zero greenhouse gas emissions by 2050.

[1] https://climatecrisis.house.gov/sites/climatecrisis.house.gov/files/Climate%20Crisis%20Action%20Plan.pdf

[Japan] Keidanren Launched the Challenge Zero Initiative

On December 12, 2019, Keidanren (also known as the Japan Business Federation), in cooperation with the Japanese Government, announced the launch of the Challenge Zero Initiative. The Initiative will support innovations to build a zero-carbon society; promote Environmental, Social, and Governance (ESG) investments; and facilitate collaboration among the private sector, government, and academic institutions.

Keidanren is an economic organization that represents a membership comprised of 1,376 domestic companies, 109 nationwide industrial associations, and 47 of Japan’s regional economic organizations.[1]

The launch of the Challenge Zero Initiative was driven by the Japan's Long-term Strategy under the Paris Agreement, issued by the Japanese Cabinet in June 2019, which declared that Japan would seek to become a “decarbonized society” by 2050.[2] Keidanren has noted that since the Long-term Strategy under the Paris Agreement was issued, the Japanese business community has realized that more concrete and ambitious actions would be needed to create innovation in order to pursue a low-carbon society.

The Challenge Zero Initiative asks participating companies and organizations to commit to one or more of the goals set by the Initiative and to report their activities to achieve their commitments. The goals include promoting disruptive innovation for net-zero-carbon technologies, demonstrating and deploying those technologies; and financing companies that make low-carbon commitments. Keidanren plans to provide more detailed information on the Challenge Zero Initiative to member companies and organizations soon.[3] [4]

[1] https://www.keidanren.or.jp/profile/pro001.html

[2] https://www.env.go.jp/press/106869.html

[3] https://www.keidanren.or.jp/journal/times/2019/1212_02.html

[4] https://www.keidanren.or.jp/policy/2019/109.pdf

［Japan］ Japan’s Electric Power Council for a Low Carbon Society Released its Vision for a Long-Term Global Warming Strategy

On October 2, 2019, Japan’s Electric Power Council for a Low Carbon Society (ELCS) published its vision for a long-term global warming strategy, “the Future Direction and Contribution of Japan’s Electric Utilities to a Low-Carbon Society.” The ELCS was established in February 2016, primarily by Japanese electric utilities as well as independent power producers in order to promote effective global warming measures in the power generation sector, while ensuring ‘Safety + Energy Security, Economy, and Environment (S+3E)’. The ELCS’ vision is in accordance with the Japanese government’s two latest energy policies—The 5th Strategic Energy Plan (2018)[1] and Japan's Long-term Strategy under the Paris Agreement (2019)[2], and shares the same concepts to achieve a low-carbon society.

 In order to shift to a low-carbon society by reducing CO2 emissions on a global scale, the ELCS plan sets out four basic goals:

·  Pursuing a dynamic energy mix to achieve a reliable and affordable energy supply, as well as promoting environmental preservation, based on safety assurance concepts

·  Moving forward with low-carbon power and electrification through comprehensive energy savings and an optimized energy mix

·   Promoting the development and deployment of innovative technologies to achieve significant CO2 emission reductions

·   Reducing CO2 emissions on a global scale through international contributions, by promoting the export of Japan’s low-carbon infrastructure technologies as well as expanding Japanese companies’ business activities overseas[3]

As of August 2019, the ELCS has 47 members, including Kansai Electric Power (KEPCO, Headquarter: Osaka Prefecture), Kyushu Electric Power (Kyuden, Headquarter: Fukuoka City, Fukuoka Prefecture[4]) and other electric utilities as well as power producers.[5] [6]

[1] https://www.meti.go.jp/press/2018/07/20180703001/20180703001.html

[2] https://www.env.go.jp/press/106869.html

[3] https://e-lcs.jp/news/4f009a368ebd6e5470ac256416bc2de8a7dbe962.pdf

 [4] https://www.kyuden.co.jp/english_company_outline_index.html

[5] https://e-lcs.jp/member.html

[6] https://e-lcs.jp/news/detail/000183.html

[USA] "Clean and Green: Duke Energy Issues Second Green Bond"

[Duke Energy, 7 March 2019]

Duke Energy's subsidiary, Duke Energy Progress, has issued $600 million in green bonds; the money generated from these bonds will go towards green energy projects such as the development of new solar farms in North and South Carolina. The green bonds are priced at a 3.45% fixed-rate coupon and with a 10-year maturity. This is the second round of green bonds Duke Energy has issued; the first round amounted to $1 billlion of green bonds issued in November 2018 by Duke Energy Carolinas. Duke Energy's green initiatives have already reduced the company's by 31% from 2005 levels. Steve Yoing, Duke Energy's Executive Vice President and CFO, stated, "We are providing our customers and communities with ever-cleaner energy – and these investments help us get there even faster as we expand renewable energy across the Carolinas. We saw strong interest in our first green bond last year and are excited to expand these offerings for investors.”

[USA] “Xcel Energy Aims for Zero-Carbon Electricity by 2050”

[Xcel Energy, 4 December 2018]

Xcel Energy has announced their intention to achieve a zero-carbon electricity mix by 2050. On the way towards this goal, Xcel will reduce CO2 emissions 80% by 2030 (from 2005 levels). Xcel’s vision is the most ambitious within the electricity industry so far. Xcel does note, however, that it’s 2050 goal requires the integration of technologies that are not cost-effective/commercially available today. For this reason, the utility is focused on the development of advanced technologies and encouraging policies that aid this technological growth. Ben Fowke – Chairman, President, and CEO of Xcel Energy – stated, “This is an extraordinary time to work in the energy industry, as we’re providing customers more low-cost clean energy than we could have imagined a decade ago. We’re accelerating our carbon reduction goals because we’re encouraged by advances in technology, motivated by customers who are asking for it and committed to working with partners to make it happen.”

[Japan] Chubu Electric Power Invested in SPARX Group’s Mirai Renewable Energy Fund to Promote Renewable Energy Resources

Following up from a joint statement from SPARX Group and Toyota Motor on September 19, 2018, SPARX Group announced on November 9 that its subsidiary SPARX Asset Management has started operating the Mirai Renewable Energy Fund. The newly-established fund aims to make investments that will accelerate the deployment of renewable energy sources in Japan. The fund has a current capital total of 23.6 billion yen, and is expected to increase to 30 billion yen. Investors in the fund include Toyota, Chubu Electric Power, Sumitomo Mitsui Banking Corporation, and Mizuho Bank.

The United Nations’ Intergovernmental Panel on Climate Change (IPCC) has emphasized the need to meet a carbon dioxide (CO2) emissions reduction target of 40 percent below 2010 levels, as well as reaching ‘net zero’ by 2050 in order to tackle global rising temperatures.[1] The Japanese Government, with its commitment to IPCC, has set its goals under the Fifth Energy Basic Plan, aiming to promote renewable energy sources nation-wide. Chubu Electric Power decided to invest in the Mirai Renewable energy Fund to develop renewable energy and reduce its produced CO2 emissions through the entire value chain, from power generation to electricity sales. Chubu Electric Power has been promoting Environmental, Social and Governance (ESG) activities under the Chubu Electric Power Group.[2]

[1] https://www.ipcc.ch/pdf/session48/pr_181008_P48_spm_en.pdf

[2] http://www.chuden.co.jp/corporate/publicity/pub_release/press/3269336_21432.html

[USA] “IPCC 1.5°C Report: A ‘Wake-Up Call’ for World Leaders”

[World Resources Institute, 7 October 2018]

The Intergovernmental Panel on Climate Change (IPCC) has released a special report detailing the impacts of warming of 1.5 degrees Celsius above preindustrial levels. This report is the response to a UNFCCC invitation when the Paris Agreement was signed in 2015. The IPCC report details the differences between the impact of a 1.5 degree increase in warming and a 2 degree increase and shows that even a .5-degree difference can drastically increase the prevalence and intensity of extreme weather events and sea level increases that is directly tied to climate change. The report also emphasizes the need for a comprehensive and multi-prong solution that considers not only decarbonization of the economy, but also reforestation, consumerism, and carbon captures and storage technologies. Dr. Andrew Steer, President and CEO of the World Resources Institute, stated, “Limiting warming to 1.5 degrees will require a radical transformation of economic and social systems at a scale never seen before. This is difficult, but by no means impossible. We know how to do it, and we know that it will lead to a much healthier economy and much healthier citizens. We now know that accelerated climate action can lead to large economic benefits, including a $26 trillion win…The urgent message of the IPCC report must be carried into the halls of power and the negotiation rooms at COP24. This should be a moral imperative for all leaders around the world.”

The full report can be found here: http://www.ipcc.ch/report/sr15/

[USA] “CIEL Statement on Judge’s Dismissal of San Francisco and Oakland Climate Lawsuits”

(Center for International Environmental Law, 25 June 2018)  

A federal judge has dismissed the lawsuits introduced by San Francisco and Oakland (California) against five oil companies (BP Plc, Exxon Mobil Corp., Chevron Corp., ConocoPhillips, and Royal Dutch Shell PLC. The cities introduced the suit against these companies for knowing about climate change for decades but suppressing any action to mitigate the issue. The presiding U.S. District Judge, William Alsup, contended that while climate change is a real and serious problem, this issue should be dealt with at a higher, more global level by the political and legislative branches of the government. Alsup also stated that everyone bears blame for climate change as everyone used and benefitted from fossil fuels. However, Lisa Anne Hamilton, the Director of Climate and Energy at the Center for International Environmental Law, disagreed and said, “The dismissal of this case rests on an unfortunate belief: the false narrative that we are all equally responsible for climate change. For decades, major fossil fuel companies have known about climate change and their own contributions to it — with some, including Shell, even quantifying those contributions with surprising accuracy as early as the 1980s. Yet instead of warning the public of the dangers of fossil fuel use, these companies funded climate denial campaigns, thwarted adaptation of renewable technologies, and fought regulations while continuing to profit from the impending global crisis.

[USA] “Mayor Walsh Calls on Cities to Join Large-Scale Renewable Energy Initiative”

[City of Boston, 7 June 2018]

Boston, Massachusetts Mayor Martin Walsh has announced his intention to issue a “Request for Information (RFI) for competitive pricing of large-scale renewable energy projects.” The RFI aims to collect and compile data on energy demand from participating cities from across the country; it will also “ask renewable energy developers for price estimates for projects that would meet their collective energy demand.” Currently, these cities include Chicago, Evanston (also in Illinois), Houston, Los Angeles, Orlando, and Portland; these cities are also part of the Climate Mayors network (a network comprised of over 400 cities) which aims to uphold the goals of the Paris Accord. Mayor Walsh commented, “Our effort on renewable energy will not only help cities cut carbon emissions and get us closer to the goals of Paris Climate Agreement, it will help power our cities and create more, clean energy jobs. We can do more than just address the problem of climate change, we can build a healthy, thriving future by working together."