IEA releases ‘roadmap to net zero’ report

BERKELEY, California, 18 May 2021: The International Energy Agency (IEA) said it has published its first ever comprehensive roadmap to net-zero emissions by 2050. The report, it added, provides guidance for governments, companies, investors and the public on what is necessary to fully decarbonize the energy sector and lower greenhouse gas emissions to limit temperature rise to 1.5 degrees Celsius.

The report, it said, comes after it received widespread criticism for systematically underestimating the pace of adoption of clean energy technologies, such as solar and wind, and substantially overestimating their costs. Critics, it said, argued that IEA projections had effectively acted as support for the fossil fuel industry’s business-as-usual operations.

In a significant shift, the IEA said, it today recognizes that on a net-zero pathway there can be no investment in new fossil fuel supply. This, it said, includes oil, gas and coal projects. The IEA said, it confirms that with the introduction of policy to achieve climate stabilization at 1.5 degrees, the fossil fuel sector will face significant demand reduction.

Danielle Fugere, President, As You Sow, responding to the release of the report, said: “This new net-zero scenario from the IEA finally aligns with investor expectations and makes abundantly clear to fossil fuel companies that they must set net-zero targets, develop a clear transition strategy, and evolve in step with the decarbonizing global economy. Standing in the way of progress is no longer acceptable for companies’ own enterprise success or for the global economy.”

Daniel Stewart, Senior Research Associate, As You Sow, said: “Until now, the IEA’s research has been used to play down transition risks faced by the fossil fuel industry and as a support for inadequate energy and climate policy. IEA’s new scenario firms up what investors already knew about the steps needed to achieve climate stabilization by mid-century. It demonstrates without a doubt that it is difficult but absolutely possible to contain the catastrophic impact of runaway climate change, and signals major disruption on the horizon for industries reliant on fossil fuels.”

Johnson Controls releases 2021 Sustainability Report

CORK, Ireland, 10 April 2021: Johnson Controls on April 9 published its 2021 Sustainability Report, highlighting its new environmental, social and governance commitments and progress towards the company’s sustainability goals, the company said through a Press release.

George Oliver, Chairman and CEO, Johnson Controls, said: “At Johnson Controls, sustainability is our business. This year saw us continue to pioneer new and important paths to sustainability, including our issuance of a green bond in the U.S. capital markets – among the very first industrials to do so.

“We welcome and embrace the enhanced attention and urgency around tackling climate change and making gains across environmental, social and governance pillars. We are determined to strengthen and further build our culture of diversity and inclusion.

“Our bold new sustainability commitments demonstrate we are all-in to help drive healthy buildings, healthy people and a healthy planet for our employees, shareholders, customers and all of our stakeholders.”

According to Johnson Controls, highlights of the report include:

• New ambitious sustainability commitments that outline the company’s priority to make positive changes in lowering its company footprint, such as achieving net zero carbon emissions before 2040.
• Its first-ever Sustainability Report that includes and fully integrates its first-ever diversity and inclusion report, highlighting its D&I commitment, mission, vision, pillars and progress.
• Its goal to double its customers’ emission reductions through implementation of its OpenBlue digitally enabled solutions by 2030.
• Its intention to double the representation of women leaders globally and minority leaders in the United States over the next five years.
• Its green financing initiatives, including a green bond – one of the first industrial companies to issue a green bond in U.S. debt capital markets – and a senior revolving credit facility tied to specific sustainability metrics
• Executive compensation that is linked to sustainability and diversity performance goals
• The appointment of the company’s first Chief Sustainability Officer and the formation of a Governance and Sustainability board of directors’ committee
• Performance contracting projects that have helped its customers avoid more than 30.6 million metric tons CO2e and save USD 6.6 billion through energy and operational savings since January 2000.
• Greenhouse gas emissions intensity reduction of more than 70% since 2002.
• Our commitment to The Climate Pledge, co-founded by Amazon and Global Optimism, to reach net-zero

Ministry of Climate Change and Environment launches policies to boost UAE’s sustainability agenda

ABU DHABI, UAE, 24 January 2021: His Excellency Dr Abdullah Belhaif Al Nuaimi, UAE Minister of Climate Change and Environment, launched new initiatives and policies to boost the UAE’s sustainability agenda, the Ministry said through a Press release.  The launch happened during the annual Abu Dhabi Sustainability Week (ADSW), the Ministry added.

The Minister highlighted the importance of driving coordinated action to expedite the energy transition and increase the share of renewables in the countries’ energy mix at the opening ceremony of the 11^th Assembly of the International Renewable Energy Agency (IRENA). He reflected on the UAE’s journey in deploying renewables at home and abroad, leading to a considerable surge in its domestic production capacity, as well as playing an effective and distinct role in reducing the cost of renewable energy worldwide.

At the Ministerial Plenary Meeting on National Energy Planning and Implementation for Fostering Energy Transition, Dr Al Nuaimi presented the UAE’s new climate ambitions, set out in its second Nationally Determined Contribution (NDC) under the Paris Agreement. He noted that the NDC fell under the country’s national economic and energy diversification drive, manifested in its current energy transition.

Moreover, Dr Al Nuaimi delivered the closing remarks at the first joint meeting to prepare for two landmark UN summits that will take place in New York in September 2021 – the Food Systems Summit and the High-level Dialogue on Energy. The participants proposed targets, policies, initiatives, and other outcomes for the summits that have simultaneous food, energy and climate benefits.

At a panel session, titled ‘COP26 – a Crucial Stepping Stone on the Path to a Sustainable Global Recovery’, the Minister stressed that the UN Climate Change Conference 2021 (COP26) is a timely opportunity for leaders to resume climate negotiations and work on a shared vision for raising climate ambition in the context of a green recovery.

He pointed out that throughout the tough times posed by COVID-19, the UAE has remained dedicated to accelerating its transition to a green economy, as part of its recovery plans, and has taken great strides along this path, including moving forward with its renewables and nuclear projects.

At the third edition of the Abu Dhabi Sustainable Finance Forum, His Excellency Dr Al Nuaimi announced the launch of the UAE Sustainable Finance Framework 2021-2031 in partnership with Abu Dhabi Global Market (ADGM). Pioneered by the Ministry, the national framework supports the mobilisation of private capital towards low-carbon, environmentally sustainable and climate-resilient investments.

With the aim of ensuring the UAE emerges as a leader in climate knowledge, the Minister launched the UAE Climate Change Research Network that brings together a group of committed scientists and researchers to advance climate data collection and policy-relevant research on climate change impacts and adaptation. The Network presents opportunities for climate scientists in the UAE to engage with one another and with their peers from other countries as well as to facilitate research collaborations.

Dr Al Nuaimi also unveiled the inaugural edition of The UAE State of Climate Report, which provides an overview of the state of knowledge on historical and projected climate changes and their impacts on the UAE and the wider Arabian Gulf region.

On the sidelines of ADSW 2021, the Minister opened the winners’ announcement of the third edition of the Global Innovation Award (GIA), organised by Globally on behalf of MOCCAE. The competition aims to attract innovations from around the world to the UAE to support the country in its quest to become a world leader in sustainable development. This year’s GIA received a record number of applications – more than 1,200 from 65 countries. The winner was Cambrian Innovation, from the United States, with its innovative waste-to-energy solution that purifies wastewater while producing energy from the contaminants.

JCI CEO named Chair of Business Roundtable Energy & Environment Committee

CORK, Ireland, 19 January 2021: Johnson Controls (JCI) announced that George Oliver, its Chairman and CEO, will be serving as Chair of the Energy & Environment Committee of the Business Roundtable.

Making the announcement through a Press release, JCI described the Business Roundtable as an association of chief executive officers of America’s leading companies. Through research and advocacy, Business Roundtable supports policies to spur job creation, improve US competitiveness and strengthen the economy, the company said. Its Energy & Environment Committee is dedicated to advancing policies that encourage innovation and support an environmentally and economically sustainable future, it added.

As the incoming Biden administration prepares to put clean energy at the heart of the US economic recovery, such business-led initiatives will be key in helping the new administration meet its proposed goals, the company said.

“I am honored to be selected as Chair of the Energy & Environment Committee and look forward to working with my fellow CEOs to support policies that preserve our environment and maximize our energy options,” Oliver said. “Climate change is one of the greatest challenges facing the planet today. Business Roundtable believes that businesses are an essential part of the solution and calls for collective action and policies to drive innovation, significantly reduce greenhouse gas emissions and limit global temperature rise.”

‘The UAE leadership has a view of the future – and it is not just tomorrow’

Congratulations on your appointment as Denmark’s Climate Ambassador. Could you speak on the potential areas of cooperation between the UAE and Denmark?

I think it’s remarkable the far-sighted leadership the UAE has taken as an oil- and gas-producing country. The leaders have a view of the future – and the future that is not just tomorrow, not just five or 10 years, but they are thinking ahead to 20 or 50 years from now.

We are talking about the major transformation of energy systems. The largest solar farms in the world are in the UAE, and a lot of investment is being done in this area. The country is taking energy efficiency in buildings seriously and addressing the challenge of having had, years ago, the highest carbon footprint per inhabitant.

In that sense, cooperation between the UAE and Denmark on energy and other topics related to food and maritime issues makes imminent sense. We are the country in the EU with the largest oil -production. We have oil and gas in the North Sea. But we are slowly ending our exploration of that oil and gas, and in December 2020, the Danish Parliament decided to end fossil extraction in the North Sea by 2050 with a plan for the just transition of impacted workers and a conversion of the oil and gas fields to Carbon Capture Utilization and Storage (CCUS)].

There is also a huge market for renewable energy, globally, as this transformation [can be seen] worldwide. In Denmark, we are building better and taller wind farms and offshore wind farms, including over the next two years in two new energy islands. As a result, there has been global interest surrounding Danish windfarm operators and wind constructors, many of whom are now in demand in a number of countries such as the US, Korea and Australia.

Could you speak more about the competitive advantage that countries such as the UAE can have from specialising in sustainable cooling solutions, both in terms of developing the expertise within the country and in terms of pioneering solutions? Do you see this to be a growing market?

The world is undergoing an energy transformation, and the UAE is also very well positioned to be part of it and, in some instances, to lead this transformation. As such, a partnership with a country like Denmark makes great sense.

When it comes to the development of cities, it’s clear that if you look at trends as a whole, [the population] is moving from the countryside to cities at an increased rate. I think the latest figures from UN Habitat and other global organisations is that almost half of the human population lives in cities. We have been going from 30-40% of the population to half, and the trajectory is pointing towards a world where most of the people are in cities.

There have been large movements in the Global South. In China, you have more than 70 cities with more than one million inhabitants, and many are newly constructed with poor quality of buildings that need to be retrofitted and rebuilt. In India, you have a growing middle-class population, and this has led to growth of new buildings in new cities or more modern buildings in new parts of the city. The same trend can be seen in the Gulf region. For a very long time, Dubai was home to most of the cranes in the world. In Africa, large cities that are already big, continue to grow. In Indonesia, we see a population in the process of moving Jakarta to a new island, because it is sinking.

Basically, in many places, the built-environment is not a done deal. We are at the beginning, not at the end. It’s only in older industrial countries in the West that the city structure is permanent. I would think the opportunities for both new buildings and retrofitting are very large, especially in warmer climates, where expertise is needed in challenging environments.

For us, in Denmark, it’s more about reverse engineering our experience with energy efficiency and insulation, and usinge and applying them in the UAE. Also, there would be solutions we need to develop from scratch, based on the circumstances and the physical environment. 

It’s clear that cooling also has some attributes different from heating. [In Denmark], some companies are experimenting with district cooling, but most are district heating, with a lot of combined power and heat plants. Also, some of them are doing this with garbage waste disposal and heat and power. With the more recent climate law, because of the move towards circular economy, we are now looking at recycling and reusing our waste rather than incinerating it.

What can further drive the development of expertise and solutions in the sustainability arena in a country?

A combination of energy pricing and embedding efficiency in building codes and regulation by central and local governments are key here. The building owner and operator might not be interested in building more efficiently because of the perceived cost, and they will try to defer the cost onto the tenants. That means rent goes up, bills go up, and they are not too happy either. That’s always a question for the less well off, that’s also the question of the fair and equitable distribution of the cost and benefit, [[when it comes to implementing sustainable solutions.].

In Denmark, people have been investing in energy efficiency because of energy cost and due to strict regulation since the 1970’s. Because of the cost of energy, there are huge paybacks at a shorter time.

In what ways can the public sector in the GCC region incentivise sustainability initiatives in the built-environment, both in terms of introducing retrofit targets and also ensuring new buildings adhere to higher energy- efficiency goals? 

For one, I would say that educating the general public is extremely important, in terms of the cost, economy, sustainability and potential social benefits.

The very practical education of engineers and economists, integrating energy efficiency into curricula in the built-environment, so that you have your own skilled engineers and technicians ¨to operate systems, do the buildings and learn from it. It is a mentality and way of thinking. We have done it for the last 50 or more years; we didn’t do it before that. It took us a long time and heavy regulation, strong incentives and a lot of private discussion among government and private sector and institutions of higher education to get that sector to operate in an efficient and integrated way. I would encourage public policy makers to think through different dimensions of how to establish a cluster of knowledge and expertise. The young students of today will be the leaders of tomorrow, and they have to make it work 10-15 years down the road.

Climate change and the larger picture of finances

Q&A: James Brainard, Mayor of Carmel, Indiana, United States

We have succeeded admirably in our fight against the depletion of the ozone layer through collective effort, through a cohesive, consensus-based approach of finding economically and technically sound alternatives to ozone-depleting refrigerants. How much confidence do you take from what has been a marvellous example of social cooperation?

We did the summit in the form of the Montreal Protocol over concerns of huge spike in cancer deaths, so it was a great example of world leaders coming together to study a problem, devise a solution and then go back to their countries to fix the problem. It shows diplomacy and recognition of common challenges can be good.

In the same way, could we not find a financially feasible, well-structured long-term plan to curb the widespread misuse of energy and general profligacy through steady and substantial investment in the infrastructure needed to achieve the goal?

You have identified the problem in the question, and we have to find the means of accomplishing this. We have to look at the larger picture of finances – the health impact of pollution; the cost of famines; the cost of relocation, if we have a rise in sea level, leading to the displacement of people from major cities; and the cost of possible conflicts arising out of this. But more specifically, we need to recognize many jobs are dependent on the fossil fuel industry. So, we can make those changes, but we have to recognize that we need to look out for investment of industry, we still need to fly airplanes. But, we have a saying in the US, ‘low- hanging fruit’. So, there are many easy things we can do to clean the environment and reduce fossil fuel use, and those are what we can focus on with recognising that we have to protect people’s jobs in the fossil fuel industry and that many are invested in the fossil fuel industry.

Would an approach of self-financing the fight against global warming by developing an energy budget in every city, town, state and country across the world be a possible way out, as propounded by George Berbari, the CEO of DC Pro Engineering? I am referring to a structured, long-term carrot-and-stick approach, where individuals and organisations occupying residential and commercial buildings could be rewarded for being energy efficient and penalised for being inefficient, with the penalty being slightly higher than the reward to create a positive budget, a surplus, which could be used for giving rebates to homeowners for improving insulation, glazing, etc., for developing infrastructure to lower primary energy use, for building thermal energy networks, even District Energy schemes… anything that would effectively fight climate change.

I think it would help. The colloquial shotgun approach, where we undertake to do a lot of small things. I think your idea of financial incentives and disincentives is good; and tied to that what needs to happen is disincentives need to increase over time and incentives need to go up and come down. It is certainly a system we need today. You could still pass laws, where each year, the incentives and disincentives change, to encourage disincentives to go up and incentives to go away. The tax system is also there. Or, it could be a separate tax, a carbon tax, and it has been discussed here since the late 1980s.

Economists believe such an approach to conserving primary energy is feasible, but democratically elected local and federal government leaders and local mayors have limited terms and, generally speaking, give priority to short-term problems, the solving of which gives them immediate political benefits, as opposed to decades-long and daunting task of curbing energy use through a financial mechanism and other initiatives, which might also be viewed by the city’s inhabitants that make the electorate, as adding to existing costs and impairing their personal and corporate competitiveness. In your case, you are one of the longest-serving mayors in the state, having been in office since 1996 over seven consecutive terms. Did that give you a canvas to paint a long-term vision? How effective was the approach? Did it help you shape regulation and enforcement at a city level? Were you able to raise greater awareness on the human impact on climate change and bring about a consensus-based change in energy use behaviour in Carmel?

We are a suburb of Indianapolis, which has a population of two million people. We are 100,000 people in Carmel. Now, places like Dubai and Doha require automobiles, owing to the urban sprawl. Generally, we need the automobile to go anywhere. We have looked at the problem and have a series of PPPs, where one can live, work, go to restaurant and engage in recreational activities without having to get into an automobile and, as a result, lower the consumption of fuel.

The average American spends two hours a day in automobiles, but in Carmel, businesses, houses, schools are all here. We have adopted land use development differently, so people can live, work and go to a restaurant all in the same area, and we tried to design our downtown not for automobiles, and it has cut down fuel use. In Carmel, it is 15 minutes to half an hour of automobile use per person, so it is much, much less [than the national average].

We have a legal structure in the state of Indiana that makes decisions on building codes, and they have done less than what I would like to see, but we have contract to have a much more efficient build. We have the example of the Energy Center in Carmel. We have cold winters and hot summers in Carmel, and we are using energy all year long to either heat or cool our buildings. And if you have an individual heating or cooling system, it starts and stops and is energy inefficient. And so, we have developed the Energy Center in the city, and it uses 50% less energy. And we would like to see this being applied across the city.

If energy is scarce and its excessive use damaging to the environment, should people be allowed to consume as much as they want to, as long as they are paying for it? Should affordability be a sole factor? Could we change that mindset and, at the same time, take care not to infringe on personal freedom and quality of life?

I have thought about it, and I believe in a capitalistic and free market approach. And there is a way to fix it, which is you pay USD 10, say, for 100 units of use, USD 15 for the next 100 units, and USD 20 for the next 100 units. And so the more you use, the higher the price. And it is a good system, because it penalizes the people to use it, and at the same time, they have the freedom to use it. In the case of steel production, maybe that may be very important for the economy and jobs, and so there should be a different model. You have to look at the situation where we can improve the environment, decrease carbon and increase quality of life.

Have you established a carbon neutrality goal for Carmel, like Copenhagen, for instance, where we are seeing a consensus-based approach involving all political parties, underpinned by the thought process that environmental action needs to be bipartisan in nature? Or are the political dynamics different in the United States?

It’s a good question. Our city is mainly Republican, and is fiscally and economically conservative. Some years ago, a seven-member council introduced a carbon neutrality goal, which is not mandated, however. We know we will get there, because the technology is there. It is not time bound. It is a legislative body that passed a law that laid out a carbon neutrality goal.

We have been measuring progress in reducing carbon. Every year, we are measuring how much energy the city is using on a per capita basis, because the city is growing. I don’t know if we have done enough yet, but we are making progress. I firmly believe technology will save us.

The fight against climate change needs to be a non-partisan effort within cities, states and nations. What we have seen is a vastly polarising view within the United States. With Joe Biden set to take the reins, how soon can we expect to see the United States aligning itself in a more profound manner to the Paris Agreement?

I am a Republican, and my undergraduate degree was in history, so I tend to think not today but historically. At the turn of the century, Ted Roosevelt, a Republican, set aside millions of acres in the US for the National Parks system. And President Eisenhower in 1952 established the Arctic Reserve in Alaska, and he was Republican, as well. And President Nixon was the one who set up the federal EPA. Republicans signed a law that amended our Clean Water Act. They passed a whole series of environmental laws. President Reagan led on the Montreal Protocol for the ozone protection initiative. George HW Bush and George Bush came from a state that produces a lot of oil, and yet they established a system of hundreds of windmills. Over 120 years, Republicans and Democrats have come together in a non-partisan manner. And they will come back; this anomaly has been only for a sort period of time. Clean air and water are non-partisan issues. Disagreement will come only in terms of jobs.

On December 11, 2020, the United States observed a new daily death record of 3,055 individuals, more than the number of people who died in Pearl Harbour or the September 11 attacks on the twin towers in New York City. The coronavirus cases have risen sharply in Carmel, as they have elsewhere in Indiana and across the country. What measures have you taken in Carmel to safeguard residents through better indoor air quality (IAQ), with science advocating more fresh air changes and maintaining Relative Humidity between 40% and 60% in buildings?

I think one good thing that has come from the pandemic is recognition of IAQ being important, and there are great many entrepreneurs in the US selling systems that clean the air. Our City Hall operates a new system that every few minutes recycles the air and filters and cleans the air in the building; and it is energy efficient. And building owners throughout the US are adopting this. I see this as a positive thing that has emerged.

I have put a taskforce in Carmel. We also have generated messages through emails and print newsletters and social media. We have used an entire gamut of ways to talk to people, not just about IAQ but also about things to do to handle the pandemic in a better way. Our city had done a good job till the first week of October, testing and quarantining people. It worked through summer, but when people came indoors when the temperatures fell, it went bad. We had our first set of vaccinations, yesterday (the interview with Mayor Brainard took place on December 15), so we hope to be in good shape by March or April 2021.

There are those that are saying building industry stakeholders simply need to reverse the polarity on their thinking when it comes to budgeting for indoor air quality and that we need to raise buildings fit for purpose.

Yes, it’s a good point. Energy for buildings is important, but I think IAQ is something that would work very well. We have tax incentive to make buildings more energy efficient, and over time if building owners do not take action, a penalty would start; and simultaneously, there will be a reduction in taxes for people who make more energy-efficient buildings. And that puts the burden away from the average taxpayer. Yes, I do believe in an incentive and disincentive system for establishing good IAQ.