First Movers Coalition: US-led initiative promises to catalyse global clean tech markets
Top multinationals join forces to help drive demand for emerging clean technologies in hard to abate sectors
A major new global initiative to leverage the purchasing power of multinational corporates to drive demand for nascent clean technologies has launched today in a bid to accelerate the development and deployment of key technologies that can drive down emissions in hard to abate sectors.
US Climate Envoy John Kerry this afternoon shared a stage at COP26 with the World Economic Forum to announced the launch of the First Movers Coalition, a platform that asks members to make purchasing commitments that support the development of early stage technologies in the steel, cement, aluminum, chemicals, shipping, aviation, trucking, and direct air capture sectors.
The First Movers Coalition aims to create a global market for low carbon technologies by committing members to buying zero-emission goods and services across these eight key sectors by 2030.
Founding members of the coalition, which include major brands such A.P. Møller – Mærsk, Amazon, Bank of America, Boeing, DHL, Trafigura Group, and Volvo, have all made purchasing commitments in at least one of the sectors covered by the initiative.
“Technology has given us the tools to reduce our emissions and build a stronger and more inclusive economy of the future,” said Børge Brende, president of the World Economic Forum. “For innovators and investors to play their part in tackling the climate crisis, they need clear market demand. The First Movers Coalition will leverage the collective purchasing power of leading companies and drive the need for these technologies. I call on business leaders to work with us and be the role models keeping our climate goals alive.”
In terms of specific purchasing commitments, members today pledged to use sustainable aviation fuels and zero-emission shipping technologies by 2030, with shipping cargo owners setting a target to transport at least 10 per cent of goods via ships that use zero-emission fuels and reach 100 per cent by 2040.
Commitments were also made to purchase zero-emission medium and heavy-duty vehicles by 2030 and purchase at least 10 per cent of annual steel volumes from manufacturers that use breakthrough low carbon processes, such as hydrogen direct reduction, carbon capture use and storage, and electrolysis by 2030.
Members are expected to set similar targets for the remaining sectors covered by the initiative in early 2022.
The coalition, which is expected to seek further members in the coming months and years, is effectively seeking to extend the reach and amplify the market signal provided by the growing numbers of clean tech purchasing commitments made by high profile businesses in recent months. For example, Amazon has sought to catalyse the market for electric vans with a series of mega-orders for zero emission vehicles, while a number of automakers have similarly sought to drive demand for low carbon steel by signing long term purchasing agreements with some of the manufacturers working on early stage green steel technologies.
The move comes on the same day as a new report from the International Energy Agency (IEA) underscored the scale of the challenge businesses and governments face as they attempt to accelerate the adoption of clean technologies.
The analysis from the influential agency found that just two of 46 energy technologies and sectors studied by the IEA are on a development trajectory that is in line with its net zero emissions scenario.
Laid out in the IEA’s Global Roadmap, the net zero scenario recommends a path for the global energy sector to achieve net zero by 2050. But today’s Tracking Clean Energy Progress (TCEP) report measures the progress of 46 energy technologies and sectors against this scenario and reveals that amplified efforts are needed across almost all sectors to meet 2050 decarbonisation goals.
The report found that a handful of clean energy technologies are in line with the net zero scenario, including electric vehicles and clean lighting technologies. But many other sectors need to significantly accelerate their development and deployment over the next decade to be on track with 2050 goals, according to the IEA.
“Several emerging technologies saw encouraging progress, but these positive trends need to accelerate rapidly over the current decade to achieve deployment levels in line with a net zero by 2050 trajectory,” the agency said. “Additions of battery storage capacity jumped by 50 per cent last year to their highest ever level, while hydrogen saw a record year for policy action and low-carbon production. Momentum behind carbon capture, utilisation and storage has increased in recent years, but its deployment remains far below the level required in a pathway to net zero by mid-century.”
The report also highlighted how power generation remains one of the “most significant” sectors that is not on track to meet net zero goals, with emissions set to rebound in 2021 following a year of covid-related lockdowns and fossil fuel plants now being retired at a fast enough rate.
Moreover, the IEA said all three energy end-use sectors – industry, buildings and transport – are not on track to deliver net zero emissions. “In industry, much stronger progress is needed on material and energy efficiency, the uptake of renewable fuels, and development and deployment of low-carbon processes,” it said. “To align with the Net Zero Emissions by 2050 Scenario, all new buildings need to be zero-carbon-ready as soon as 2030 along with one-fifth of existing buildings through retrofits. Less than one per cent of existing buildings today are zero-carbon ready. In transport, stronger policies are needed to encourage shifts to using low-carbon modes of transport, greater energy efficiency measures, and the building out of infrastructure to support zero emission vehicles, as well as the development and uptake of those vehicle in long-distance transport.”
