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TODAY'S CLIMATE AND ENERGY HEADLINES

Briefing date 07.06.2022
Biden invokes Defence Production Act to boost solar panel manufacturing

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Every weekday morning, in time for your morning coffee, Carbon Brief sends out a free email known as the “Daily Briefing” to thousands of subscribers around the world. The email is a digest of the past 24 hours of media coverage related to climate change and energy, as well as our pick of the key studies published in peer-reviewed journals.

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News.

US: Biden invokes Defence Production Act to boost solar panel manufacturing
NBC News Read Article

Following reports of such a move over recent days, the White House has confirmed that US president Joe Biden will use his executive powers to boost the domestic production of solar panels and their parts, according to NBC News. It adds that he will use the Defence Production Act – a Korean war-era act that directs private companies to prioritise orders from the federal government – to accelerate the manufacturing of solar panels in the US as part of the administration’s push towards clean energy. Biden will also use his authority to allow tariff-free solar panel imports from Cambodia, Malaysia, Thailand and Vietnam for two years. The Financial Times notes that this move “comes amid a heated debate within the US administration over whether to ease tariffs on billions of dollars of Chinese goods to fight inflation, unravelling levies imposed under former president Donald Trump”. The newspaper states that the move will offer a “cost reprieve” to US renewable developers “after months of uncertainty”, adding that it “effectively blunts” the threat of a US commerce department investigation that could lead to higher tariffs on some imported solar panel components. Reuters says that the investigation is looking into whether solar panel imports from the four countries, which contribute to the majority of US solar capacity, were circumventing tariffs on products made in China. According to Bloomberg, Biden’s move “neutralises” the threat of retroactive tariffs being applied, which had been threatening the nationwide expansion of renewables. White House officials said that, with these actions, the Biden administration aimed to increase domestic production of solar panel parts, building installation materials, heat pumps and other components, and that the tariff suspension would act as a “bridge measure” while the US solar industry is scaled up, according to the Associated Press. A Bloomberg article notes that invoking the Defence Production Act is the same move used by Trump to prop up failing coal plants. Despite the pledge by this administration to boost domestic production of solar parts, the action has received pushback from some in the industry include the Auxin Solar, the small Californian panel maker that triggered the initial probe, according to another Bloomberg piece.

Separately, the Hill reports that the Climate Votes Project, through which a coalition of environmental groups will put the money toward federal and state candidates with strong climate policy proposals, has announced a $100m ad campaign ahead of midterm election season. Reuters polling suggests people in the US are split on nuclear power – key to Biden’s climate strategy – with 45% of Americans supporting it and 33% opposing it.

Finally, the Independent reports that residents of some western states, particularly Arizona, California and Nevada, are facing an intense heatwave this weekend, with temperatures forecast to reach above 38C.

UK: Sunak’s tax breaks could lead to more than £8bn of North Sea energy projects
The Guardian Read Article

More than £8bn of oil-and-gas projects in the North Sea could now proceed as fossil-fuel firms take advantage of a tax break in Rishi Sunak’s windfall tax, according to new forecasts by analysts reported in the Guardian. While the UK chancellor recently announced a one-off levy on energy firms to help with the cost-of-living crisis, it included 91p of tax savings for every £1 of investment made by companies into UK-based energy projects, the newspaper notes. It quotes the broker Shore Capital, which said the tax breaks offered a “powerful incentive for those existing producers who have so far been hesitant to press the button on development-ready discoveries”. (See Carbon Brief’s recent factcheck on British oil-and-gas projects to get a sense of the potential projects that could be launched in UK waters.) The Independent reports on comments by Labour shadow chancellor Rachel Reeves, who says Sunak has undermined the windfall tax – which was originally a proposal by Labour – by creating a “tax giveaway for oil and gas producers”. According to analysis by Labour, cited in the article, a third or more of any revenue raised by the tax on oil and gas profits could be handed back to the firms in tax breaks. It also quotes Reeves asking: “Have the government even bothered to check what this means for our country’s net-zero target and climate commitments?” The Financial Times reports that gas producer Serica Energy has reassured its shareholders that it should be able to use the new investment allowances to lower its tax bill this year.

Amid questioning by the Treasury committee yesterday, Sunak said that the government is “urgently” exploring a windfall tax on electricity companies, as well as oil-and-gas firms, within weeks, according to the Times (such an expansion has drawn criticism due to its potential impact on low-carbon electricity generation in the UK). The Daily Express cites a “Whitehall source” and reports that Sunak “appears to have changed his tone” over this expansion of the windfall tax and will “exempt energy companies making profits from electricity generated from wind farms and nuclear power plants as the energy crisis deepens”.

The Daily Telegraph reports that the UK is producing almost one-fifth more gas than last year, “boosting efforts to wean the country and its European neighbours off Russian energy”. Meanwhile, the Guardian says that an EU plan to fast-track funding and permits for 30 gas projects is facing a legal challenge from a group of NGOs.

Meanwhile, the Guardian reports that more than 70 NGOs and activist groups from around the world have formed a “carbon bomb defusal” network following the newspaper’s investigation into these 195 “gigantic oil and gas projects” planned around the world.

Global crises undermine efforts to get climate talks back to normal
Politico Read Article

Countries began the latest round of UN climate talks yesterday in Bonn, Germany, aimed at setting the groundwork to land deals at COP27, but, as Politico reports, “war, hunger and disease” overshadowed the beginning of the negotiations. It says that among the topics being discussed in the coming two weeks are new climate finance goals, new adaptation targets and how to finance such action, a push by developing countries for “loss and damage” finance, and whether China should start donating climate finance to developing countries. The piece quotes the Norwegian co-chair of the sessions, Marianne Karlsen, who said the return of talks to Bonn following years of Covid-related disruption was “a sign that we are returning to normality and predictability for our process”. It also says that Russia’s delegates were “upbraided in public by negotiators over their government’s aggression in Ukraine”, and told their actions were a threat to action on climate change as well. The Guardian reports that various experts and diplomats have warned that governments cannot use geopolitical tensions and rising energy prices “as an excuse for falling behind on their climate commitments”. It quotes Patricia Espinosa, the UN’s climate chief, telling delegates that “climate change is not an agenda we can afford to push back on our global schedule”. Associated Press also carries Espinosa’s comments, including her urging delegates not to “give into despair”. Deutsche Welle reports that the main focus of climate negotiations this year will be on implementation — particularly what concrete actions have been taken since last year’s COP26 climate conference in Glasgow.

According to the Independent, Scotland’s first minister Nicola Sturgeon will use a video address to the conference to call on other developed nations to show “much greater commitment” to addressing loss and damage. At COP26, Sturgeon made Scotland the first developed country to commit funds specifically for loss and damage, as Carbon Brief’s detailed summary of the conference notes.

Climate change: 42% chance of breaching 1.5C goal even if all carbon emissions cease
New Scientist Read Article

Existing CO2 emissions in the atmosphere mean there is now a 42% chance of the world breaching its 1.5C climate change goal “even if global emissions ceased overnight”, reports New Scientist. The piece is based on a study, published in Nature Climate Change, which shows “an increase on a less than 33% chance just four years ago”. However, “the researchers put the probability of exceeding 2C at just 2% if we stopped emitting today”. Sky News also covers the story, highlighting that if current emissions continue until 2029, chances of breaching 1.5C “dramatically increases to 66%”.

Meanwhile, the Guardian reports on research showing CO2 emissions are now “50% higher than during the pre-industrial era, further pushing the planet into conditions not experienced for millions of years, well before the emergence of humans”. It continues: “The last time CO2 levels were this high was 4.1m years ago…The world was then radically different from how we know it now, with forests in the Arctic and sea levels five to 25 metres higher than today.”

Famine risk rises in Somalia as rains fail, food prices soar – UN
Reuters Read Article

UN agencies say that nearly a quarter of a million people face starvation in Somalia, with drought worsening and global food prices nearing record highs, according to Reuters. A fourth consecutive rainy season has failed and meteorologists warn of another below-average rainy season later this year “as the world’s climate becomes more erratic”, the piece adds.

Separately, the Guardian reports that the funding needed by UN climate disaster appeals has soared by more than 800% in 20 years amid global warming. This finding is based on a new report by Oxfam which looks at the needs for “loss and damage” – referring to the impacts of climate change that nations cannot simply adapt to, including the devastation caused bye natural disasters. The article notes that last year was the third costliest on record for extreme weather events, such as droughts, floods and wildfires, but only about half of the financial requirements from affected nations is being met by rich countries.

Associated Press has a piece in which experts call for better climate-related research, weather stations and early warning systems that are needed in Africa to help its nations deal with climate impacts such as droughts and cyclones.

China’s renewable energy fleet Is growing too fast for its grid
Bloomberg Read Article

Bloomberg says that China is “wasting more and more” clean energy as it “adds wind turbines and solar panels faster than its grid is able to digest them”. The outlet, citing government data first reported by Economic Information Daily, says that “nearly 12% of power generated by wind turbines” in north China’s Inner Mongolia in 2022 has been “wasted” because the grid “couldn’t take it”, along with “10% of solar power” in Qinghai, a northwestern province in China. The main “culprit’‘ is the “blistering pace” of renewable energy installations, the outlet says, adding that the country’s “slowing economy and energy use amid Covid-19 lockdowns has something to do with it”.

Meanwhile, Reuters reports that China is “rolling out so-called low carbon transition bonds to help companies become greener”, citing a statement from the National Association of Financial Market Institutional Investors (NAFMII) – the country’s “interbank bond market regulator” – on Monday. The newswire says that the move comes as Beijing “strives toward carbon neutrality”. According to NAFMII, companies in “eight sectors” – including electric power, steelmaking, petrochemicals and civil aviation – will issue bonds to “fund decarbonisation efforts” under the pilot scheme, Reuters notes. Additionally, a separate report by Reuters says that US firm Energy Transfer “entered into a deal to supply 0.7m tonnes of liquefied natural gas a year” to China Gas Holdings on a “free-on-board basis for 25 years”, according to the companies’ statement on Sunday.

Separately, according to guidelines issued by the regional government on Monday, Inner Mongolia – which is rich in coal resource – will “take measures to reduce its reliance on coal consumption” and “accelerate” “major” renewable energy projects to lower the region’s energy consumption per unit of GDP by “15%” between 2021 and 2025, the Global Times reports. The state-run newspaper says that the agenda is “in line” with the nation’s “pledge” to advance carbon emissions peaking and carbon neutrality initiatives, as well as “ensuring energy security”.

Finally, the Tarim Desert Road – which traverses the Taklimakan desert in northwest China’s Xinjiang Uygur autonomous region – has been turned into a “zero-carbon” one, Xinhua reports. The state new agency says this is due to protective shrubs lining the road being irrigated with solar pumps instead of diesel ones, with the shrubs also absorbing CO2 to “​​help neutralise the CO2 emitted by passing vehicles”.

UK coastal communities 'cannot stay where they are' due to rising sea levels, warns UK Environment Agency chief
The Big Issue Read Article

The Big Issue reports that some of the UK’s coastal communities will be forced to relocate as flooding increases in the coming years, with rising sea levels “inevitable”, according to a warning from Sir James Bevan, chief executive of the Environment Agency . The Daily Mail also has the story, noting that Bevan is set to make the comments at the Flood and Coast Conference in Telford, Shropshire. It adds that the Environment Agency will set out its risk management strategy to help get the nation ready for flooding and coastal change, including  a national assessment of flood risk, an updated coastal erosion risk map and long-term investment scenarios. The Independent quotes the chief executive saying there is “no coming back for land that coastal erosion has taken away or which a rising sea level has put permanently or frequently under water”.

Germany: Habeck on an energy and climate mission

Bild newspaper reports that German vice chancellor and climate minister Robert Habeck is visiting Israel, Palestine and Jordan to talk about energy security and renewables. It quotes Habeck warning: “In this region, in particular, it is becoming clear how much security policy and climate policy must be brought together and how urgent it is to limit global warming to a tolerable level.“ German TV channel N-tv adds that Habeck is travelling to Israel to talk about the expansion of renewable energies, but a gas field will also be an issue. If neighbouring countries make their liquified natural gas (LNG) terminals available, Israel could become Germany’s gas supplier, says the article. “There is still a lack of gas if we want to make ourselves independent of Russia,” said Habeck shortly before leaving for Israel.

Meanwhile, Handelsblatt reports that the gas storage facilities in Germany are already half full again. It adds that the Gas Infrastructure Europe association has reported a filling level of 50% for Germany, while on March 18, the stores were emptied down to 24%. “For comparison: last year, the 50% mark was not exceeded until 1 August”, the media outlet notes.

Finally, German news website T-online reports that a leader of the Green political party Omid Nouripour is sceptical about a proposal from federal labour minister Hubertus Heil, who has suggested paying people with a gross income of up to €4,000 ($4,273) a month in state subsidies to offset rising energy prices. The article quotes Nouripour saying: “We cannot spend money in this crisis without considering the necessary climate protection measures. Otherwise, we will have to spend a lot more in the future.”

Carbon credits: Google and Unilever among firms 'road testing' new code of practice
BusinessGreen Read Article

The Voluntary Carbon Markets Integrity initiative (VCMI), a provisional code of practice for the sector that has gained support from UN agencies and governments, is set to be “road tested” by leading businesses including Google, Unilever and Hitachi, BusinessGreen reports. The code, which was launched with the UK government, aims to “bring integrity to corporate claims made about voluntary use of carbon credits”, the piece continues. South China Morning Post says such action is “important because the current terminology and standards leave a lot to be desired and have left investors confused”. According to Reuters, the initiative will assess companies’ claims about progress towards internal climate targets and their use of carbon offset credits, seeking to bring transparency to an unregulated market. It notes that major fossil fuel companies and airlines such as Shell and Easyjet have said they would rely on such credits to achieve their climate targets. A company can be awarded Gold, Silver or Bronze under the standard, “depending on progress towards its corporate climate targets for a given year, and the use of offsets to go beyond those targets”, the piece adds.

Comment.

Our food was under threat before Putin invaded Ukraine – now it’s getting worse
Donnachadh McCarthy, The Independent Read Article

Writing in his “climate column” for the Independent, environmental campaigner Donnachadh McCarthy provides a breakdown of some of this year’s headlines on extreme weather and crop failures, ranging from grain losses in South Africa to droughts in eastern Germany. He places all this in the context of the current food crisis, linked to Russia’s invasion of Ukraine. “Martin Frick, director of the World Food Programme (WFP) in Berlin, told me that the climate crisis was definitely a contributor to this year’s global food cost inflation. He warned that climate-related food shortages could lead to political instability, failed states and millions of refugees moving in desperation to survive,” he writes. However, he said Frick also mentioned positive actions governments can take to reduce climate exacerbated famines. “We must stop pouring so much of our food into meat production and biofuels manufacturing…We also need to return to the tradition of only eating meat for the Sunday roast and not devouring meat with every single meal,” he says.

Meanwhile, in light of UK prime minister Boris Johnson surviving last night’s vote of confidence, a Times editorial says his political authority is “badly dented”. It reflects on the current government’s recent failings, stating: “The levelling-up white paper comprised a series of long-term targets with no plan to achieve them. The energy security strategy similarly set out implausible targets for nuclear and offshore wind with next to nothing to say on reducing energy demand.”

Science.

Interbasin and interhemispheric impacts of a collapsed Atlantic Overturning Circulation
Nature Climate Change Read Article

A new study investigates the potential far-reaching impacts of a collapse in the Atlantic Meridional Overturning Circulation (AMOC). Using a global climate model, the researchers show that “AMOC collapse can accelerate the Pacific trade winds and Walker circulation by leaving an excess of heat in the tropical South Atlantic”. Other impacts include “weakening of the Indian and South Atlantic subtropical highs and deepening of the Amundsen Sea Low”, the study adds. (For more on the potential shutdown of the AMOC, see Carbon Brief’s guest post from 2020, which was part of a series on tipping points.)

Processing tomato production is expected to decrease by 2050 due to the projected increase in temperature
Nature Food Read Article

Rising global temperatures could hit the production of “processing” tomatoes – which are typically canned or used for tomato ketchup or paste – around the world by 2050, a new study suggests. The main producers of processing tomatoes – which are typically grown in fields rather than under controlled conditions – could see a 6% decrease in production by 2050, compared to 1980-2009, the study finds. California and Italy could be affected by “water resource constraints”, the authors say, while “cooler producing regions, such as China and the northern parts of California, stand to improve their competitive advantage”. An accompanying News & Views article notes that “photosynthesis improvements due to CO2 fertilisation only partially counterbalance climate warming impacts in terms of tomato yield”.

Combined role of ENSO and IOD on compound drought and heatwaves in Australia using two CMIP6 large ensembles
Weather and Climate Extremes Read Article

Compound drought and heatwaves (CDHWs) during summer in Australia have “increased significantly in terms of their frequency, duration, amplitude and severity” over the last 60 years, a new study says. Using two collections of climate models, the researchers also analyse the influence of the El Niño-Southern Oscillation (ENSO) and Indian Ocean Dipole (IOD). They find that CDHWs are “significantly increased during strong El Niño phases across north-east Australia compared to neutral ENSO and IOD conditions”. This increase is “widespread over north-east and south-east Australia during the concurrence of strong El Niños and moderate-strong positive IOD events”, they add.

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