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News Compilation (01/10-10/10)Briefing 1 Latest Policies 01 Thailand plans to introduce carbon tax to adapt to global trend on carbon regulation According to the report form "Bangkok Post" on September 12, Thailand will introduce a carbon tax to adapt to the global trend on carbon regulation. Ekniti Nitithanprapas, the director-general of the Thai Tax Agency, said that in response to EU countries’ plans to impose a carbon border tax on some carbon-intensive imports from 2026, Thailand is considering introducing a carbon tax to build up Thai's negotiating power for its products as a way to gain tariff relief in export markets. The introduction of a carbon tax also helps tax authorities promote the idea of environmental, social and governance (ESG) in their tax measures. In addition, Ekniti revealed last week that the department had been working on tax measures to support the production of bioplastics, bio-jet fuel and environmental-friendly batteries. 02 The U.S. Department of Energy released the "Industrial Decarbonization Roadmap", identifying five industries and four ways to reduce carbon emissions On September 7th, the U.S. Department of Energy (DOE) released the "Roadmap for Industrial Decarbonization", which identified four key ways to reduce industrial emissions in the U.S. manufacturing industry. In 2020, the primary energy-related CO2 emissions in the US industry is 1.36 billion tons, accounting for 30% of the total CO2 emissions. The industrial decarbonization roadmap focuses on five industries which have the highest CO2 emissions and the greatest impact on industrial carbon emissions, namely petroleum refining, chemicals, iron and steel, cement, and food and beverages. The roadmap identifies four pillars of key technologies that could significantly reduce the emissions in the five sub-sectors that had been studied. By adopting an alternative approach to mitigate remaining emission, annual CO2 emissions can be reduced by 100%. The cross-cutting pillars of decarbonisation are improvements in the energy efficiency of industrial processes; industrial electrification approaches to leverage electricity generated from clean sources; expanded use of low-carbon fuels, feedstocks, and energy sources (LCFFES); and the deployment of carbon capture, utilization, and storage (CCUS) technologies, etc. These pillars apply to all industrial sub-sectors and enable the realization of near-term and future emissions reductions as the grid GHG emission intensity decreases, technology develops, and hard-to-abate sources are addressed. 03 IEA and IRENA jointly released the "Breakthrough Agenda Report", calling on countries to formulate a net-zero carbon emission schedule for all models as soon as possible On September 20, the International Energy Agency and the International Renewable Energy Agency (IRENA) jointly released the Breakthrough Agenda Report. This inaugural report assesses progress on reducing emissions in five key sectors – road transport, power, hydrogen, steel and agriculture, while highlighting that the critical global transition to net-zero emissions may be delayed by decades in the context of the current global energy crisis. In this report, the International Energy Agency called on governments to work with automakers to formulate a zero-carbon emission schedule for all models. Clear statements and roadmaps from governments can send clear signals to the industry to stimulate and accelerate the transformation of key technologies and reduce costs. 04 MAS Establishes Sustainable Finance Advisory Panel On October 5th the Monetary Authority of Singapore (MAS) announced the establishment of a Sustainable Finance Advisory Panel to guide MAS' strategies and initiatives to build a more vibrant sustainable financial ecosystem.The SFAP is made up of a diverse group of sustainability experts from financial institutions, academia and other stakeholders from around the world as a reflection of the multidisciplinary nature of the sustainable development agenda. In the first meeting of SFAP, the focus was on the challenges of transformational finance and the role of financial institutions, businesses, regulators and governments in achieving an orderly and inclusive transition in the region. 05 U.S. Treasury To Announce $1 BillionLoan For Multilateral Clean Technology Fund U.S. Treasury Secretary Janet Yellen on Thursday will announce a $950 million loan to the Clean Technology Fund (CTF), a multilateral trust fund that helps developing countries accelerate their transition from coal power to clean energy. The loan will be used to support U.S. climate commitments, including Just Energy Transition Partnerships (JETPs), while funding CTF projects developed by multilateral development banks in alignment with South Africa, Indonesia, India, and the Philippines as they accelerate their shift away from coal. 06 New industry standards section of the GRI Sustainability Reporting Guidelines (Version 2021) to take effect from 1 January 2023 The Sustainability Reporting Initiative (GRI), an initiative established by the United Nations Environment Programme (UNEP), is the most widely used ESG reporting framework in the world. The GRI Standards, which are based on the GRI Guidelines, can be used in different sectors and requirements, or in combination, and are highly quantifiable. According to the analysis, the GRI Standard (Version 2021) of the Sustainability Reporting Guidelines has a new section on industry standards, which will come into effect on 1 January 2023. 3 Enterprises 01 Iron ore firm Fortescue Metals invests $6.2 billion to decarbonize iron ore business According to reports from foreign media on September 20, Australian iron ore company Fortescue Metals announced that it planed to invest about US$6.2 billion over the next 10 years to decarbonize its iron ore business and complete its goal of ceassing the use fossil fuels in its operations by 2030. Among this total investment, $3.2 billion will be used to build renewable energy generation and storage of 2-3GW , $1.3 billion to introduce the low-carbon vehicles, $900 million to build new infrastructure, and $800 million to be set aside for demand response. 02 Maersk Adds Six Large Container Green Methanol Vessels Maersk has set a net zero emissions target for 2040 for its entire business and realistic near-term targets for 2030 to ensure significant progress. Recently, to further its green transformation and respond to customers' supply chain decarbonization needs, Maersk has ordered a total of 19 vessels with dual-fuel engines capable of running on green methanol, of which all six 17,000 TEU vessels will be delivered in 2025, and the six green methanol vessels will reduce CO2 emissions by approximately 800,000 tons per year. Meanwhile, the choice of several shipping companies, including Maersk, to use green methanol ships provides further impetus for the rapid expansion of availability needed to reduce green methanol premiums and accelerate the development of climate-neutral shipping. 03 SHEIN Announces Emissions Reduction Goals for Future Operations SHEIN announced on September 29th that it will provide up to $7.6 million in program funding to the Apparel Impact Institute (Aii), a non-profit organization dedicated to decarbonizing and modernizing the fashion industry's supply chain, to develop a roadmap to reduce emissions across SHEIN's supply chain and reduce total emissions across its value chain by 25% by 2030. SHEIN's emissions reduction goals are based on a science-based carbon footprint assessment, and SHEIN has partnered with Intertek, the industry's leading provider of comprehensive quality assurance, to measure the carbon footprint impact in 2021 through a joint interactive workshop, which has resulted in the establishment of the following 2030 goals, which are being submitted through a commitment letter. 04 Volvo to Supply 20 Heavy-Duty Electric Trucks To Amazon Volvo Trucks will deliver fully electric heavy-duty trucks to Amazon in Germany by the end of the year. The 20 Volvo FH Electric are expected to drive more than one million road kilometres annually, fuelled with electricity instead of diesel. Heavy goods vehicles and other commercial vehicles make up around 36% of Germany’s domestic transport emissions, which makes road transport decarbonization an important issue to address. Volvo Trucks started the series production of heavy-duty electric trucks in September this year and the availability of electric trucks for inter-city and regional haulage marks an important milestone for decarbonizing road transport. 05 Allianz to develop onshore fund ESG investments The 34th Shanghai Municipal International Entrepreneurs' Information Conference (SIIC) will be held on October 7th. Allianz Chairman of the Board and CEO Frio Bett said that China is one of the most important emerging markets for Allianz, and Allianz is very optimistic about the development prospects of China and Shanghai. Allianz is currently setting up an onshore fund management business in China, and future onshore products will continue Allianz's style of sustainable investment to help the development of green finance in China. 06 Sinopec Launches First Carbon Capture and Storage Facility Program Sinopec announced on August 30 that it has put into operation a Carbon Capture, Utilization and Storage (CCUS) facility, which captures carbon dioxide from the hydrogen production process at Sinopec's Qilu refinery and injects it into nearby wells to improve the oil recovery rate of the field. In addition, Sinopec said the facility is China's first megaton CCUS facility and is estimated to reduce carbon dioxide emissions by 1 million tons per year, equivalent to planting more than 9 million trees. In terms of increasing oil production, the company estimates that crude oil production will increase by nearly 3 million tons in the next 15 years, consuming and utilizing 10.68 million tons of CO2. Sinopec also aims to build two more pilot projects in the nearby East China and Jiangsu oil fields in the next few years. Sources |
