1. The capacity of renewable energy will increase by 10% globally in 2022, but more must be done.
According to the International Renewable Energy Agency (IRENA), the capacity of renewable energy worldwide increased by 9.6% in 2017. 90% of the net additions were from wind and solar energy, while nearly half of the new capacity was created in Asia.
By the conclusion of the previous year, the additions increased the overall renewable energy capacity to 3,372 gigawatts (GW), a 295 GW increase over the year before. At 141 GW, China was the major contributor.
The growth of renewable energy in Europe and North America was 57.3 GW and 29.1 GW, respectively, while the Middle East saw the largest growth of renewable energy ever, with 3.2 GW of new capacity being added in 2022, up 12.8% from the year before.
The endurance of renewable energy in the face of the ongoing energy crisis is demonstrated by this ongoing record increase, according to IRENA Director-General Francesco La Camera. "Yet if we want to continue on a road limiting global warming to 1.5°C, yearly additions of renewable power capacity must expand three times the existing level by 2030," the report stated.
If the world is to have any hope of keeping temperature increases to 1.5°C over pre-industrial levels, emissions must be cut in half by the middle of the 2030s, according to a new assessment from the UN's Intergovernmental Panel on Climate Change.
2. In 2022, sales of carbon allowances will bring in a record $63 billion.
While more nations or regions have strengthened their objectives to reduce pollution, governments worldwide raised a record $63 billion through the sales of carbon allowances in 2022, an increase of almost $4 billion from 2021.
To place a price on carbon dioxide emissions and encourage businesses to invest in low-carbon technology, many nations and regions have started emissions trading systems (ETS).
In an ETS, governments set a gradually decreasing cap on the amount of emissions that a sector, or group of sectors, can produce. They then create carbon allowances for those emissions, which are then auctioned, and companies are required to buy one for each tonne of CO2 they emit. There are currently 28 ETS programs operating globally, covering approximately 17% of global emissions.
According to a report, prices in the EU ETS, the most well-established program in the world, increased to an average of $83 per tonne last year, up from $65 in 2021. In China's ETS, the average allowance price was $8 in 2022, up from $7 in 2021. The price for the linked ETS between California and Quebec increased to $28 from $21 during the same time period.
3. News in a Nutshell: More International Energy Stories
According to The Financial Times, Germany's energy watchdog predicts that businesses and households will need to further reduce their gas consumption in order to prevent shortages next winter. Germany was previously incredibly reliant on Russian pipeline gas, and this winter will be the first without these supplies.
Infinity Power acquired a 100% share in the wind power business Lekela Power this week, closing Africa's largest ever renewable energy acquisition. The company intends to develop and manage 2 gigawatts of new wind power projects by 2025, more than doubling its present portfolio.
The Net Zero Industry Act, a proposed new piece of legislation, would set a goal of 50 million tonnes of CO2 storage capacity annually by 2030 for Europe.
Also, the EU has struck a preliminary agreement to increase the use of renewable fuels on ships in order to lower greenhouse gas emissions in the maritime industry.
Provincial-level administrations in China will be required to identify possible locations for renewable energy projects as part of a pilot program that aims to have at least 30% of the nation's primary energy consumption come from renewable sources.
The platform will aid in funding initiatives that plant trees, stop deforestation, support biodiversity, and sustainable forest management, according to The Financial Times. The platform is being launched by commodity trading house Mercuria, based in Switzerland, as it seeks to get more involved in the voluntary carbon offset market.
US researchers are working on a lithium-air battery that could significantly extend the driving range of electric vehicles; the battery uses a solid electrolyte rather than the typical liquid electrolyte used in lithium-ion batteries, which can increase energy density by 300%, according to Energy Monitor.
Enel Group subsidiary Enel X and automotive storage producer MIDAC are working together on the initiative to conduct research and development for Italy's first significant lithium battery recycling factory.
The US is evaluating potential interest from countries and corporate backers in its "Energy Transition Accelerator" (ETA), which would allow regional or state bodies to earn carbon credits by decarbonizing their power sectors, as it looks to help finance moves by poorer nations away from fossil fuels.
The development of solar and battery storage facilities in Uzbekistan by Saudi Arabian utility developer ACWA Power could offset 16 million tonnes of carbon dioxide emissions annually.
Blue ammonia, a low-carbon ammonia created with natural gas feedstocks and carbon capture, will be the first commercially supplied to Japan this year thanks to an agreement between Saudi Arabian mining corporation Ma'aden and Japanese industrial and trading conglomerate Mitsui.
As the EU works to compete with the US and China, a European Sovereignty Fund might help the EU achieve its goal of being a leading growth region for green technology. "If we want to be competitive, we need European added value and scale," European Economic Commissioner Paolo Gentiloni stated.
The US Energy Secretary stated that it may take several years to replenish the nation's Strategic Petroleum Reserve (SPR), which sent oil prices substantially lower. "The absence of crude buying for the SPR marks a major blow to the oil demand picture," PVM Oil analyst Stephen Brennock told Reuters.
4. More from Agenda on energy
According to the most recent Intergovernmental Panel on Climate Change study, predicted climate change hazards will actually have a greater impact at lower temperatures than previously believed.
Here are five significant changes that might significantly lower emissions from the global transportation system, which is responsible for 15% of global greenhouse gas emissions.
In order to close the gap with businesses in mature markets, who have already started to implement sustainability measures, emerging economies need to follow the steps outlined in this blog.