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TODAY'S CLIMATE AND ENERGY HEADLINES

Briefing date 03.09.2024
African nations are losing up to 5% of their GDP per year with climate change, a new report says

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Climate and energy news.

African nations are losing up to 5% of their GDP per year with climate change, a new report says
The Associated Press Read Article

A new report from the World Meteorological Organization finds that African countries are already losing up to 5% of their GDP every year as a result of climate change, the Associated Press reports. The newswire says that, according to the report, many African nations are spending up to 9% of their budgets for climate adaptation policies. It continues: “Africa is responsible for less than 10% of global greenhouse gas emissions. But it is the most vulnerable region to extreme weather events including droughts, floods and heatwaves, the WMO said. The new report focuses on 2023, one of Africa’s three hottest years on record. It urged African governments to invest in early warning systems as well as meteorological services. If adequate measures are not put in place, up to 118 million Africans will be exposed to droughts, floods and extreme heat by 2030, the report warned. In sub-Saharan Africa, the costs of adapting to extreme weather could be $30-50bn per year over the next decade, the report estimated.” Reuters also covers the report, adding: “The warning comes as African countries mull how to use this year’s UN COP meetings to secure a bigger share of global climate financing. The 54-nation continent has been attracting more funds for climate mitigation and adaptation projects in recent years, but it still gets less than 1% of annual global climate financing, government officials said earlier in August.”

In other African news, the Associated Press covers a new report alleging that construction work on a pipeline linking Uganda’s emerging oil fields to a port in Tanzania has “triggered widespread suffering among locals facing forced displacement and other violent abuses”. The outlet says the report, by Climate Rights International, “is the first of its kind to detail serious allegations against the China National Offshore Oil Corporation (CNOOC), one of a number of partners in the project”. The report says banks and insurers should withhold further funding for the project, according to the newswire. It continues: “Uganda is estimated to have recoverable oil reserves of at least 1.4bn barrels. Ugandan officials say oil production could begin by 2026. The total investment in Uganda’s oil fields will reach an estimated $15bn. French oil company TotalEnergies is the majority shareholder in Uganda’s oil fields, with a 56.67% stake. CNOOC has 28.33% and the Uganda National Oil Company has 15%.” Campaigners have also opposed the pipeline, which “would pass through seven forest reserves and two game parks, running alongside Lake Victoria, a source of freshwater for 40 million people”, it adds. In response, TotalEnergies “repeatedly asserted that the pipeline’s state-of-the-art-design will ensure safety for decades”, says the newswire, while a CNOOC spokesperson in Uganda “was not immediately available for comment”. Finally, Reuters says: “Oil exports at major Libyan ports were halted on Monday and production curtailed across the country, six engineers told Reuters, amid a standoff between rival political factions over control of the central bank and oil revenue.”

UK: Renewable energy auction secures enough power for 11m UK homes
The Guardian Read Article

“Great Britain’s renewable energy auction has secured enough new clean electricity projects to power 11m UK homes,” the Guardian says. The newspaper reports that the Labour government “made record funding available to suppliers” for this year’s auction, increasing funding seven-fold compared to last year. It continues: “The £1.5bn auction will support the construction of new windfarms, solar farms and tidal power projects…The bulk of the funding was awarded to new offshore windfarms in UK waters. This could lead to enough new offshore windfarms to increase the UK’s capacity by 3.3GW, or enough clean electricity to power almost 8m UK homes before the end of the decade. The auction also awarded contracts to about 20 new onshore windfarms with a total capacity of almost 1GW, and about 90 new solar farms with a total capacity of 3.3GW. Tidal power developers secured contracts for six new projects, and the world’s largest planned floating offshore windfarm.” The Financial Times reports that 131 “clean energy projects” won the state subsidy contracts. It adds that this year’s auction was the “biggest round ever”, with a total of 9.6GW awarded across all technologies. BBC News reports that nine new offshore wind contracts have been awarded this year. The outlet continues: “Last September, no companies bid in the auction to build offshore wind farms. The industry said at the time that the guarantee price offered by the then Conservative government for electricity generated by the wind farms did not take into account higher costs such as construction materials which had risen because of inflation.” The outlet adds that the government is aiming to produce 60GW of energy through offshore wind farms by 2030. The Press Association notes that the government “came in for criticism [today] after the total generation capacity of the auction was lower than previous years, while offshore wind projects totalled just 5GW, lower than the 7GW in 2022”. This is “roughly half of what is required each year to meet the government’s target of 50GW of new offshore wind by 2030”, the newswires says, adding: “Nonetheless, the auction results mark a turnaround for offshore wind projects in particular, after no contracts were awarded for the industry last year.” Reuters and the Evening Standard also cover the story. 

Elsewhere, BusinessGreen reports on new data from RenewableUK, which shows that “the country’s onshore wind energy pipeline has grown by 4.2GW in the past year”. The Associated Press covers a new bill which “will allow the crown estate to invest more in green energy”, according to a Treasury minister. The Associated Press also reports that Green MP Ellie Chowns has “said all houses built as part of the Government’s plan to deliver 1.5m homes over the course of the next five years should be able to generate their own power”. And the Guardian reports that “landowners in England have been paid more than £9bn of taxpayers’ money in the past 30 years for environmental benefits, despite the decline in nature that has taken place during that time, data reveals”. 

In other UK news, the Guardian reports that five seabirds have been added to the UK’s “conservation red list” of species that are “at dire risk of local extinction”. The paper says: “Seabirds are in a precarious position as their breeding areas are under threat from climate breakdown, and the food they eat such as sand eels are overfished and at risk from warming seas.” BBC News cites “climate change, unsustainable fishing practices, offshore renewable-energy development and habitat loss” as the main dangers to the UK’s sea birds. The MailOnline and also cover the news. In the Conversation, Richard Gregory – an honorary professor of genetics, evolution and environment at University College London – comments on the red list. He says: “Ocean warming disrupts and shifts the life cycles of seabird prey, such as sandeels, and the resulting scarcity can cause populations to collapse. Increasingly severe winter storms and summer heatwaves also kill seabirds. The broader effects of climate change and the warming of the ocean are difficult to predict, but the associated increase in acidification and lower oxygen levels are certain to upset food webs.” 

China pledges deeper DRC ties as African leaders gather in Beijing for FOCAC summit
South China Morning Post Read Article

In a meeting with Democratic Republic of the Congo (DRC) president Félix Tshisekedi ahead of the Forum on China-Africa Cooperation (FOCAC) in Beijing, Chinese president Xi Jinping vowed to “deepen agriculture and mineral processing cooperation” between the two countries, the Hong Kong-based South China Morning Post (SCMP) reports. DRC supplies more than 60% of China’s cobalt and is a “key player” in the country’s “transition to green energy, it says. The news outlet adds that Chinese exports of new energy vehicles, lithium batteries, and solar products to Africa “have rocketed in recent years”, increasing by 291%, 109% and 57% in 2023, respectively. Reuters reports that South African president Cyril Ramaphosa, who also met with Xi that day, told the Chinese president that he “wanted to narrow his country’s trade deficit with Beijing”. State-run newspaper the China Daily reports that Kenyan president William Ruto said that “the combination of Africa’s renewable energy resources and Chinese technology would bring benefits to both sides”, and that Kenya will sign deals on “renewable energy development” and “climate action investments” with China during FOCAC. The Communist Party-affiliated newspaper People’s Daily says that “under the framework of FOCAC, China has been working with African countries within its capacity to help them improve infrastructure, enhance their capacity for self-growth, and achieve sustainable development”. The west is looking to “sow discord in China-Africa relations and undermine their cooperation” by accusing China of “practising ‘neocolonialism’ in Africa”, an “explainer” by the state news agency Xinhua says.

Meanwhile, Danish prime minister Mette Frederiksen urged Europe to “depend less on China for technology and show it has learned its lessons about relying too much on a single supplier”, the Financial Times reports. The China Daily quotes Anthony Moretti, an American academic, saying that “positive dialogue and interaction are necessary” between the US and China on “finance, trade and economics, instead of resorting to tariffs”. SCMP publishes an opinion article by Kate Logan, associate director of climate at the Asia Society Policy Institute, arguing that the “greatest achievement” by US climate envoy John Podesta in his upcoming visit to China would be an “affirmation from his Chinese counterparts that climate progress can be enabled by both sides and that disagreements on thornier issues should not block making headway on the most existential ones”.

Elsewhere, the New York Times reports that, due to the effects of climate change-linked extreme weather on agricultural production, “the prices of many vegetables [in China] rocketed…reaching their highest level in five years and hitting the pocketbooks of consumers”. The Wall Street Journal says that China’s “manufacturing activity declined for a fourth straight month in August”, partly due to “factors including recent high temperatures and heavy rains”. And business news outlet Yicai reports that China’s “production, construction, and consumer activities” are gradually recovering thanks to “subsidies to counter extreme weather conditions”, according to Wen Tao, an expert at the China Logistics Information Center.

Finally, in the Conversation, Lauren Johnston – an associate professor at the University of Sydney’s China Studies Centre – writes about China’s investments in Africa. Johnston lists some of China’s investments in mining in Africa, including in cobalt production in the DRC, lithium mining in Zimbabwe and iron ore in Guinea. However, she says that for African countries, this “generates concerns for development”, noting that “China has been criticised for abandoning African interests by adding value in China and not in Africa.” She concludes by explaining how African countries can “take advantage of China’s mineral rush”, including learning from their Chinese partners and learning how other emerging markets manage their relationships with China.

Volkswagen considers German plant closures to save billions in costs
The Guardian Read Article

The car manufacturer Volkswagen (VW) is considering shutting down two of its factories in Germany “as it struggles with the transition away from fossil fuels”, the Guardian reports. According to the newspaper, this is the first time the carmaker would close factories in its home country. It continues: “The VW proposals underline the difficulties traditional European carmakers are having in switching from profitable but polluting petrol and diesel cars to cleaner but currently less profitable electric vehicles. European and US carmakers are also under increasing pressure, particularly from Chinese electric vehicle manufacturers which have lower costs and higher profit margins.” The Times says: “Volkswagen said that it also felt forced to end its job security programme, which has been in place since 1994 and prevents job cuts until 2029, adding that all measures would be discussed with the works council. It employs about 680,000 staff.” The Financial Times reports on its frontpage that “lower than expected demand for electric vehicles in Europe has hit the region’s carmakers, including VW, which is also struggling with a shrinking market share in China, its most profitable market”. Bloomberg reports that VW currently employs around 300,000 workers in Germany. The Daily Telegraph says: “Volkswagen, Germany’s largest industrial employer and Europe’s top carmaker by revenue, has been stung by rising power prices after the loss of cheap Russian gas in the wake of the invasion of Ukraine. The company has also been struggling with a faltering $200bn push into electric cars. Sales of EVs stalled in the first half of the year, while the company has delayed the US launch of its latest electric sedans indefinitely. Earlier this year it revealed plans to invest up to $5bn in Tesla rival Rivian in an effort to catch up with its competitors.” Agence France-Presse and CNN also cover the story.

Meanwhile, the Daily Telegraph reports on its frontpage that “car makers are rationing sales of petrol and hybrid vehicles in Britain to avoid hefty net-zero fines”. The newspaper says that Robert Forrester, chief executive of Vertu Motors, “blamed the zero emission vehicle (ZEV) mandate, which requires at least 22% of cars sold by manufacturers to be electric from this year”. It continues: “This target will gradually rise each year before reaching 80% in 2030, with manufacturers made to pay £15,000 for every petrol car that exceeds their quota – unless they have so-called carbon credits to spend. But the scheme has prompted stark warnings from bosses at major brands, such as Vauxhall owner Stellantis and Ford, which have said they cannot sacrifice profits by selling EVs at large discounts indefinitely. Instead, they have previously warned they may be forced to restrict petrol car supplies to artificially boost their ZEV mandate performance. The warning from Vertu is the first confirmation that carmakers have now begun doing so.” The Times also covers the story. 

Separately, the Guardian reports that campaigners have written a letter to chancellor Rachel Reeves, calling on her to  introduce a “controversial pay-per-mile road charging scheme on electric cars”. The charity “Campaign for Better Transport” argued that this is an “urgent issue”, as “tax revenues were forecast to fall by £5bn between 2028 and 2033, and the public agreed that all vehicles should pay a fair share”. And, finally, Reuters reports that “Sweden’s Volvo will launch a long-range variant of its FH Electric truck, capable of covering up to 600km (373 miles) on a single charge”.

UK Neo Energy puts brakes on North Sea investment over Labour plans
The Times Read Article

The lead developer of a “big oil and gas project in the North Sea” has decided to “curb investment” in the project, the Times reports. The paper continues: “The £900m Buchan project had been scheduled to start producing its first oil in 2027 and to turn out about 35,000 barrels a day at its peak. However, Neo Energy, which owns 50% of the scheme, said that government plans for new environmental rules for oil and gas extraction would cause delays in securing a sign-off from the Offshore Petroleum Regulator for Environment and Decommissioning, the environmental regulator for all offshore oil and gas operations in the North Sea.” The Guardian says: “The decision highlights a battle ahead for the Labour government, which came to office with a pledge to raise taxes on North Sea producers to fund a rapid transition to green electricity generation. The energy secretary, Ed Miliband, last week decided the government would not defend against legal challenges brought by environmental groups about two other North Sea projects, throwing them into further doubt.” CityAM also covers the story. Elsewhere, the Press Association reports that the British Chambers of Commerce has “called for an independent task force to examine the plans for North Sea energy transition and to safeguard about 200,000 jobs”. And, in the second of a four-part series on the energy sector, the Times looks at “fears for the future of Britain’s home-produced oil and gas”.

In other news, Sky News reports that UK prime minister Keir Starmer has “defended” his decision to cut winter fuel payments, saying that it will help to fix the “£22bn black hole in the economy”. However, in a frontpage story, the Daily Mail says that the opposition Conservative party has accused Starmer of “running scared” over the “growing backlash over his plans to axe winter fuel payments for 10 million pensioners”. A MailOnline article says that Starmer is facing a “Labour revolt” over his decision: “Labour tensions surfaced this afternoon as Poole MP Neil Duncan-Jordan tabled an early day motion urging a U-turn. The motion – which is largely symbolic but can be signed by other politicians – says that the change is being made ‘without proper consultation’ and will hit those on ‘modest incomes’.” The Sun, the Daily Express and the Spectator also report on the “backlash”.

Climate and energy comment.

Pacific Islanders, need climate action – not greenwashing – from Azerbaijan
Joseph Zane Sikulu, Climate Home News Read Article

Joseph Zane Sikulu – Pacific director for climate campaign group 350.org – has written an open letter to Mukhtar Babayev, president-designate of COP29. “The Pacific has done the least to contribute to the climate crisis, yet we are fighting it the hardest,” Sikulu says. Meanwhile, he says that Azerbaijan – which will host COP29 in November – is “nowhere near” aligned with limiting warming to 1.5C. He continues: “Your climate goal uses accounting tricks to continue business as usual. You speak of ‘reducing emissions by 40% compared to 1990 levels by 2050’. However, your emissions were much higher in 1990 than they are in the 21st century…Instead of holding the fossil fuel industry to account, you have presented a greenwashing fund to allow industry to continue with business as usual. The fund masks the ongoing expansion of fossil fuel production by SOCAR, your state oil company which is set to be the first to contribute.” He concludes by calling on Azerbaijan to “step up with ambitious climate goals before November”.

Geoengineering is worth the risk – provided we regulate it properly
Pascal Lamy, Financial Times Read Article

Pascal Lamy –  chair of the climate overshoot commission and former director general of the World Trade Organization – argues in the Financial Times that geoengineering is “worth the risk”. He says: “With risks already high and rising alarmingly, we cannot afford to ignore any existing methods. That includes controversial ones such as geoengineering – specifically, solar radiation modification (SRM), which involves reflecting a small portion of sunlight back into space to cool the planet. During the past few months, SRM has been gaining traction in scientific circles, international media and among diverse climate stakeholders.” He notes that SRM is “highly experimental and not without climate, health and ethical risk”, but says that “our collective failure to limit global warming to 1.5C leaves us with little choice other than to explore it”. Lamy advises setting “firm principles” for SRM, such as a global governance framework, a moratorium on SRM deployment until “sufficient scientific understanding and governance structures are in place” and expanded research on SRM with a focus on “transparency and global participation”. He concludes: “Next year’s UN environment assembly-7 and COP30 offer the right opportunities for decision-making on the complex risks and benefits of SRM.” (For more on SRM, see Carbon Brief’s explainer.)

In other UK comment, technology journalist Andrew Orlowski writes in the Daily Telegraph that “Ed Miliband’s silence on nuclear power is deafening”. Orlowski writes that nuclear power is the only “technology option” that can ensure energy security and reach net-zero, but says that Miliband “has been far more active when it comes to wind and solar”. He continues: “Rural voters will get a shock when they see what is coming next from the wind lobby: new wind turbines three times taller than the ones we see in the UK today are to be allowed, where the tip reaches almost to the top of the Shard [the London skyscraper]. As well as using less land, [small modular reactors] instead will not require thousands of miles of new transmission pylons, either. So what’s not to like?” And Alistair Osborne – the chief business commentator of the Times – writes that Keir Starmer “needs to wake up to the risks of putting the North Sea over a barrel”. 

New climate research.

Spatial variability in Arctic-boreal fire regimes influenced by environmental and human factors
Nature Geoscience Read Article

Boreal North America, eastern Siberia and northern tundra regions are the Arctic regions most sensitive to climate change’s influence on wildfires, a new study says. The research creates “a fire tracking system to map the sub-daily evolution of all circumpolar Arctic-boreal fires between 2012 and 2023” using infrared imaging. The authors say: “We use this dataset to classify the Arctic–boreal biomes into seven distinct ‘pyroregions’ with unique climatic and geographic environments. We find that these pyroregions exhibit varying responses to environmental drivers, with boreal North America, eastern Siberia and northern tundra regions showing the highest sensitivity to climate and lightning density.”

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