Global Briefing: EU to push for global fossil fuel phase out at COP28
VW to build $2bn US electric car factors, CO2 successfully stored below North Sea, and EU car sale ban hits roadblock in our roundup of all the top green business news from around the world this week
EU to push for global fossil fuel phase out at COP28
The European Union is planning to push the world to set a global target date for phasing out all fossil fuels during UN climate talks in Dubai later this year, after member states’ ministers yesterday approved the EU’s climate and energy diplomacy priorities for the COP28 summit.
The text, which has been approved by ministers from all 27 EU nations, states that the bloc will “systematically promote and call for a global move towards energy systems free of unabated fossil fuels well ahead of 2050”, alongside pushing for a peak in fossil fuel consumption in the near term.
It reiterates the agreement at COP26 in Glasgow backed by almost 200 countries to phase out unabated coal in energy production and calls for an “immediate end to all financing of new coal infrastructure in third countries” as a “first step”.
But the EU Council text emphasises the need to go further at COP28, which begins at the end of November this year, by pushing for a global phase out of oil and gas, as well as just coal, noting the importance of providing “targeted support” to vulnerable groups and countries during the transition.
“The Council considers that a dependence on fossil fuels leaves countries vulnerable to market volatility and geopolitical risk and that the shift towards a climate neutral economy will require the global phase-out of unabated fossil fuels, as defined by the IPCC, and a peak in their consumption already in the near term, while recognising a transitional role for natural gas,” the agreed text states.
It comes as the EU Commission readies a suite of fresh policies, reforms and investment aimed at supporting clean technologies and accelerating its shift to net zero in response to the USA’s Inflation Reduction Act and the energy crisis sparked by Russia’s war in Ukraine.
Germany, Italy, and others push back against EU 2035 fossil fuel car sales ban
Elsewhere in European climate policy, however, both Germany, Italy and Germany are reportedly fighting back against EU plans to effectively ban the sale of fossil fuel cars and vans from 2035 due to concerns over the impact on their respective domestic automotive industries.
The three countries, alongside Poland and Bulgaria, have reportedly blocked the final approval of an EU law that would mandate the sale of only zero emission cars and vans across the continent from 2035, widespread media reports suggest this week.
According to Politico, Germany is lobbying the European Commission for the inclusion of an option that would allow the sale of internal combustion engine cars and vans to use synthetic e-fuels after the 2035 target date.
The pushback from these nations, which risks delaying the introduction of the EU law, is expected to be discussed by national Ministers from across the bloc at a meeting on Monday aimed at finalising the regulations, the news site reports.
CO2 injected into former oil field below Danish seabed in ‘world first’
Carbon dioxide captured from an industrial site in Belgium has been safely injected into a former oil field under the Danish North Sea this week, marking a major milestone in the commercial development of carbon capture and storage (CCS) worldwide, according to the firms behind the project.
Project Greensand, led by British chemicals giant INEOS and Norwegian oil and gas firm Wintershall Dea in a consortium of 23 other organisations, aims to store up to eight million tonnes of CO2 per year, and the first injection of CO2 into the undersea storage basin took place on Wednesday.
The CO2 is being captured at the INEOS oxide factory in Antwerp, Belgium, before being transported cross-border for permanent storage at the firm’s Nini field around 1,800 metres below the Danish seabed, where it is being “closely monitored”, according to INEOS.
The successful injection of CCS into the depleted oil field was hailed as a “big moment for Europe’s green transition, and for our clean tech industry”, by European Commission President Ursula von der Leyen.
“The first ever full value chain, for carbon capture and storage in Europe,” she said. “You are showing that it can be done. That we can grow our industry through innovation and competition, and at the same time, remove carbon emissions from the atmosphere, through ingenuity and cooperation. This is what Europe’s competitive sustainability is all about.”
The European Commission estimates it will need to store up to 300 million tonnes of CO2 per year by 2050 in order to achieve its net zero target.
Lars Aagaard, Denmark’s Minister for Climate, Energy and Utilities, added: “The Danish subsoil can store a lot more carbon than we ever will capture in Denmark. Therefore, I am extremely pleased that the whole perspective on the Danish subsoil from day one is based on an industrial thinking where these resources should be brought to the market and help other countries meet their climate target on a commercial basis.”
Volkswagen plots $2bn electric vehicle factory in US
Volkswagen is panning to build two new electric vehicle (EV) factories in the US, including a new assembly plant in Columbia, South Carolina, the German car giant announced last week.
The company is reportedly planning to invest $2bn in the South Carolina plant alone, in a move expected to create around 4,000 jobs in the area, while it is also searching for a second EV factory site elsewhere in the country, according to the Financial Times.
The decision forms part of VW’s growing push towards electrification worldwide, and has been spurred in part by the launch of the Inflation Reduction Act (IRA) last year, which sets out $369bn of clean tech subsidies and tax incentives to attract green investment to the US, the newspaper suggested.
Meanwhile, Volkswagen Group also said this week that it expects 80 per cent of its vehicle sales to be electric by 2030 in Europe, revising up its previous 70 per cent goal.
Schneider Electric debuts ‘first of its kind’ sustainability awards platform
Schneider Electric has announced its first ever Sustainability Impact Awards programme aimed at recognising the work of its partners and customers in “delivering a more resilient and sustainable electric world”.
The digital energy management giant yesterday named six corporate winners through the inaugural awards cohort: Amazon Web Services, IT giant Hewlitt Packard Enterprise, US housebuilder KB Home, engineering firm Faith Technologies, industrial automation company SOATI S.A.L, and tech provider World Wide Technology (WWT).
Aamir Paul, president of North America, at Schneider Electric, said the first three winners had demonstrated sustainability leadership in decarbonising their own operations, while the latter three had shown leadership in helping their customers achieve their decarbonisation goals.
“It’s a collective mission to create more sustainable solutions around the world to reach a net zero world,” he said. “At Schneider Electric, we’re proud to recognize these select partners who are embedding positive change across their business operations and setting a precedent for others to follow.”
