News from governments, Carbon Removal and Climate Finance - January 6
Singapore awards hydrogen-ready gas plant; UK considering ban on sale of ICE cars from 2030; AI to monitor carbon removal through biomineralisation;
In this newsletter
News from Governments
UK government consultations on phasing out petrol and diesel cars
UK signs first three hydrogen production contracts
Taiwan's Wushui Niaozui Tan Lake: Boosting Water Supply and Sustainability
Singapore: PacificLight to Build Hydrogen-Ready Power Plant
Thailand Advances Gene Editing for Agricultural Sustainability
Thailand proposes small hydro for flood control and lower energy costs
Climate Finance
Bangladesh receives $900M World Bank funding for climate resilience
GEF Council approves $700M for environmental projects
Fervo Energy Secures $255 Million for Geothermal Expansion
EU-IDB Initiative Boosts Sustainable Mining in Latin America
Unpad receives Bezos Earth Fund grant for green energy transition research
IDB & BNDES Launch $900M Amazon Sustainability Program
Carbon Removal
Messer Improves CO2 Supply Chain Sustainability in Czech Republic
EU ETS Auction Revenues and Use
Washington State Saves Cap-and-Invest Program
Congo's Multi-Sectoral Collaboration for REDD+ Benefits
Nigeria uses Optical Gas Imaging to Reduce Methane Emissions
Leveraging EU CBAM for Climate Finance
AI-Driven Monitoring for Carbon Removal in Agroforestry
Here is a good read on the EU Carbon Border Adjustment Mechanism from Center for European Reform.
News from Governments
UK government consultations on phasing out petrol and diesel cars
(January 6)
UK government has commenced a consultation on phasing out the sale of new petrol and diesel cars from 2030, ensuring that all new cars and vans will be 100% zero emission by 2035.
UK signs first three hydrogen production contracts
(December 20)
The UK government, through the Low Carbon Contracts Company (LCCC), has signed the first three of eleven hydrogen production contracts under Hydrogen Allocation Round 1 (HAR1). These projects (Cromarty, Whitelee, and West Wales) will have a combined capacity of 31.8MW, creating jobs and driving Britain’s Net Zero goals. This is the largest cohort of electrolytic hydrogen projects in Europe announced simultaneously.
Taiwan's Wushui Niaozui Tan Lake: Boosting Water Supply and Sustainability
(January 4)
Taiwan has completed the Wushui Niaozui Tan artificial lake project. The project, costing NT$21.95 billion (approximately US$710 million), provides 210,000 tons of surface water daily to Changhua and 40,000 tons to Nantou County, reducing land subsidence and enhancing water supply resilience. The project also includes planting 6,600 trees and providing NT$185 million (approximately US$6 million) to subsidize school lunches in Nantou County.
Executive Yuan (Taiwan Cabinet)
Singapore: PacificLight to Build Hydrogen-Ready Power Plant
(January 03)
Singapore-based PacificLight Power (PLP) has been awarded the right to build a new 600MW hydrogen-ready Combined Cycle Gas Turbine (CCGT) facility on Jurong Island. The plant, scheduled to begin operations in 2029, will be the largest and most efficient H-class CCGT in Singapore and will include a large-scale Battery Energy Storage System (BESS). It will be capable of using at least 30% hydrogen initially, increasing to 100% in the future. The project also includes potential for future Carbon Capture, Utilisation, and Storage (CCUS) technology integration.
Thailand Advances Gene Editing for Agricultural Sustainability
(January 3)
Thailand has unveiled initiatives to become a global leader in agriculture, using gene editing (GEd) to modernize its sector, combat climate change, and improve food security. The plan includes developing GEd crops like maize, soybeans, sugarcane, and medicinal herbs, reducing import reliance and creating high-value products. International collaborations with the US and Japan are supporting research and regulatory frameworks.
Thailand proposes small hydro for flood control and lower energy costs
(December 23)
Thailand is exploring small-scale hydropower projects to mitigate flooding and reduce electricity costs. Deputy Prime Minister and Minister of Energy, Pirapan Salirathavibhaga, proposed the initiative. A pilot project will assess the feasibility of generating at least two megawatts of electricity, enough for 400 households, and storing water for agriculture. Hydropower costs one baht per unit compared to 4.18 baht from natural gas.
Climate Finance
Bangladesh receives $900M World Bank funding for climate resilience
(December 23)
Bangladesh and the World Bank signed two financing agreements totaling $900 million to improve environment sustainability, inclusive growth and climate resiliency. The $500 million Second Bangladesh Green and Climate Resilient Development Credit will support policies to transition to green and climate-resilient development, reduce air pollution, and improve environmental enforcement. The $400 million Resilient Urban and Territorial Development Project will improve climate-resilient urban infrastructure in seven city clusters, benefiting about 17 million people.
GEF Council approves $700M for environmental projects
(December 20)
The Global Environment Facility (GEF) Council approved nearly $700 million in financing for chemicals and waste management, water and urban resilience, and biodiversity protection in developing countries. The GEF also initiated the process for its ninth replenishment, aiming to achieve key environmental targets by 2030.
Fervo Energy Secures $255 Million for Geothermal Expansion
(December 19)
US-based Fervo Energy secured $255 million in funding ($135 million equity, $120 million debt) to accelerate its enhanced geothermal systems (EGS) power development. Its Cape Station project (up to 2 GW) will begin generating electricity in 2026.
EU-IDB Initiative Boosts Sustainable Mining in Latin America
(December 17)
The EU and IDB launched a €6.3 million initiative to support sustainable mining practices and the global energy transition in Latin America and the Caribbean. The program will leverage an additional €120 million in IDB investments for Critical Raw Materials projects in Argentina, Bolivia, Brazil, Chile, and Ecuador, focusing on improving mining governance and sustainable extraction of materials like copper, lithium, and rare earth elements.
Unpad receives Bezos Earth Fund grant for green energy transition research
(November 28)
Indonesia-based Universitas Padjadjaran received a USD 250,000 grant over two years from the Bezos Earth Fund to participate in the Green Macroeconomic Modeling Initiative (GMMI). The project focuses on analyzing green energy transition policies relevant to Indonesia and producing evidence-based recommendations.
IDB & BNDES Launch $900M Amazon Sustainability Program
(October 27)
The IDB and BNDES have launched a $900 million program to expand financing for small businesses in the Brazilian Amazon, with a focus on sustainable activities and climate investments. The program targets 16,000 MSMEs, prioritizing women (30%), climate investments (20%), and borrowers in municipalities with low HDI (70%).
Carbon Removal
Messer Improves CO2 Supply Chain Sustainability in Czech Republic
(December 19)
Germany-based Messer, a maker and supplier of industrial gases, has commissioned a new green CO2 production facility in Vrdy, Czech Republic. The CO2 is procured as a raw gas from a local bioethanol producer and purified for further use.
More about the facility
In November 2021 Messer Technogas signed a package of contracts with the company Ethanol Energy in Vrdy (EEV) pertaining to the construction of a new liquid carbon dioxide (LCO₂) production plant in said locality. Messer Technogas and Ethanol Energy have joined forces to recycle the raw CO₂ generated as a by-product of the bioethanol facility in Vrdy into a pure, commercial-grade liquid product for use, inter alia, in the food industry. The capacity of the plant will amount to 39,000 tons of LCO₂ per year. The start of operation is planned in 05/2024. With its own production facility Messer Technogas will eliminate its dependence on competitors’ plants on imported LCO₂. Messer
EU ETS Auction Revenues for Climate Action
(December 19)
EU Member States have increased their use of auctioning revenues from the EU Emissions Trading System (ETS) for climate and energy-related purposes. In 2023, €33 billion in revenue was distributed to Member States, with a total of €43.6 billion generated. From June 2023, 100% of revenue must be used for climate action, exceeding the previous 50% target. Germany (€7.6 billion), Poland (€5.4 billion), Spain (€3.6 billion), and Italy (€3.5 billion) generated the most revenue.
Washington State Saves Cap-and-Invest Program
(December 17)
Washington State voters overwhelmingly supported the Cap-and-Invest Program, designed to reduce greenhouse gas emissions. The program requires large emitting businesses to purchase emission allowances, with proceeds funding conservation. Earlier in 2024, many legislators introduced a bill to repeal the program, but when that failed to pass, it was brought to ballot with the name Initiative 2117 in November.
Nearly 62 percent of Washington voters rejected the initiative
This triggered a rise in carbon auction prices in the state.
Congo's Multi-Sectoral Collaboration for REDD+ Benefits
(December 17)
Although the country boasts one of the lowest deforestation rates in the Congo Basin, greenhouse gas emissions from deforestation and degradation represent its largest source of emissions, due to land use changes from agriculture, mining and energy consumption patterns.
The Republic of Congo, supported by the UN-REDD Programme and the African Forest Forum (AFF), held a national policy dialogue to align REDD+ (reducing emissions from deforestation and forest degradation) with other sectors. The country aims to benefit from improved forest cover and access to clean water. A roadmap was developed for REDD+ stakeholder coordination and integration.
Nigeria uses Optical Gas Imaging to Reduce Methane Emissions
(December 12)
Nigeria partnered with Clean Air Task Force (CATF) and other organizations on a campaign using optical gas imaging (OGI) technology to detect methane leaks in the oil and gas sector. The campaign involved five facilities in the Niger Delta region and demonstrated the effectiveness of OGI for leak detection and repair (LDAR).
Leveraging EU CBAM for Climate Finance
(December 02)
A paper from Harvard Kennedy School’s Belfer Center proposes expanding the EU Carbon Border Adjustment Mechanism (CBAM) to recognize investments in decarbonization as an Effective Carbon Price (ECP). This would allow firms to reduce their CBAM liabilities by purchasing carbon assets from carbon mitigation projects, generating climate finance in developing countries. The proposal involves two channels:
an external channel where developed-country exporters invest in developing countries,
and an internal channel where developing countries use investments to offset CBAM obligations.
The EU could issue delegated or implementing acts to recognize carbon mitigation assets as ECPs or amend the CBAM regulation.
AI-Driven Monitoring for Carbon Removal in Agroforestry
(October 27)
UK-based University of Huddersfield and Tierra Foods are collaborating on a £690,000 AI-driven project to monitor carbon removal through sustainable agroforestry. The project, backed by £496,000 from Innovate UK, will use AI to monitor biomineralisation, a process where plants convert atmospheric carbon into stone.
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