Published on 02/10/2024
Norway: electric cars outnumber petrol for the first time
Electric cars now outnumber petrol cars in Norway for the first time, an industry organization has said, a world first that puts the country on track towards taking fossil fuel vehicles off the road. Of the 2.8m private cars registered in the Nordic country, 754 303 are all-electric, against 753 905 that run on petrol, the Norwegian road federation (OFV) said in a statement. Diesel models remain the most numerous at just under 1m, but their sales are falling rapidly.
Norway, paradoxically a major oil and gas producer, has set a target for all new cars being sold to be zero emission vehicles – mostly EVs since the share of hydrogen cars is so small – by 2025, 10 years ahead of the EU’s goal. In a bid to electrify road transport to help meet Norway’s climate commitments, Norwegian authorities have offered generous tax rebates on EVs, making them competitively priced compared with fuel, diesel and hybrid cars.
Sources: The Guardian, BBC
Swiss Parliament approves a budget of over 2 billion for the environment
The Parliament has given the green light to a budget of over 2.2 billion Swiss francs for environmental protection from 2025 to 2028, including an additional 70 million for forests. In total, forests will receive a total credit of 521 million francs for the four years.
These additional funds are intended to finance measures to adapt forests to climate change and promote biodiversity. The total amount of these grants is aimed at supporting measures taken for environmental preservation, biodiversity conservation, and protection of the population against natural hazards.
Sources: RTS, Swissinfo.ch
China pumped in over $100 bln overseas in cleantech since 2023, research group says
Chinese firms' overseas investments in clean energy technology projects have exceeded $100 billion since the start of 2023 as they aim to avoid tariffs in the U.S. and elsewhere, as reported by the Australian research group Climate Energy Finance (CEF). China is the world's biggest producer and exporter of products such as solar panels, lithium batteries and electric vehicles, with its investment, innovation and manufacturing capabilities leading the world by an "astonishing margin", CEF said in a research report.
The United States and Canada have already slapped 100% tariffs on China-made electric vehicles, and the European Union is set to vote on the issue in October. U.S. imports of Chinese solar panels and lithium batteries are also subject to tariffs of 50% and 25%, respectively. "The investments from Chinese private companies are largely driven by the need to circumvent trade barriers," said Xuyang Dong, CEF analyst and co-author of the report. She said BYD, China's leading electric vehicle manufacturer, is now building a $1 billion plant in Turkey to avoid a proposed EU tariff of nearly 40%, and battery maker CATL is planning factories in Germany, Hungary and elsewhere.
Sources: Reuters, Financial Times
Power thirst complicates ESG investors' love affair with tech stocks
Investors who manage hundreds of billions of dollars are pressing Microsoft, Alphabet and others for more information on the power needed for artificial intelligence and advanced computing, to help decide whether the sector should stay heavily represented in sustainable funds, investors said. While these conversations are at an early stage, six fund industry executives in Europe and the United States said they are looking more closely at the environmental impact of the AI boom, which Goldman Sachs estimates will boost data center power demand by160% by 2030. None of the investors contacted by Reuters said they were considering divesting.
"What we will do is make the AI angle a central part of our climate-related engagement with tech companies," said Eric Pedersen, head of responsible investments at Nordea Asset Management. If the companies were to loosen current commitments to source renewable energy now and in the future, managers may choose to exclude them from some of the more strictly-defined funds.
Jason Qi, senior ESG research analyst for Morgan Stanley's Calvert Research and Management, said he had been asking the firms for more information about current energy use. Qi cited Microsoft as a leader in disclosing data like power supply deals (PPAs), but said no company was sharing as much as he wants.
The farmers abandoning ‘Big Ag’ to grow mushrooms and herbs
The Transfarmation Project, founded by Leah Garcés, president of the nonprofit Mercy for Animals, is helping factory farmers transition to healthier, more sustainable, and more profitable farming methods. The project was inspired by Garcés' encounter with Craig Watts, a factory farmer who was struggling to pay the bills and was grappling with health issues due to the conditions of factory farming. Despite being initially seen as adversaries, Garcés and Watts soon realized their shared goal of ending factory farming.
Watts was a contract farmer for Perdue, one of the biggest chicken companies in the US, where he raised over 720 000 often sick chickens over 22 years for slim profit margins. Garcés helped Watts transition to growing specialty mushrooms like shiitake, which provided him with a better income and improved living conditions. However, the transition was not easy. More than 70% of poultry farmers live below the poverty line, burdened with massive loans, making it difficult to leave factory farming.
The Transfarmation Project provides farmers with resources, consulting services, and financial support to aid their transition. Despite not advertising the project, hundreds of farmers showed interest as soon as the website was launched, showing a high demand for such transitions. Garcés' vision is not just to help a few farmers transition, but to completely move away from factory farming. However, she points out that such a shift will require government intervention, similar to what was done with the tobacco industry.
Source: Reasons to be cheerful
Experts from the United Nations advocate for a traceability system for critical minerals
Experts from the United Nations recommend a global traceability system for critical minerals necessary for the energy transition, in order to prevent environmental destruction and human rights violations resulting from increasing demand. These minerals, including copper, cobalt, nickel, rare earths, selenium, and cadmium, are used in electric vehicle batteries, solar panels, and wind turbines. The International Energy Agency estimates that demand for these minerals will quadruple by 2040 in order to limit global warming to 1.5°C.
UN Secretary-General Antonio Guterres has established a committee of experts to develop safeguards for this energy revolution. Developing countries fear that the energy transition may replicate and exacerbate past inequalities, with the exploitation of their population and the endangerment of their environment. The committee has established seven guiding principles, including the protection of human rights and the integrity of the planet, and the sharing of benefits among different stakeholders and countries.
The experts recommend the establishment of a global system for traceability, transparency, and accountability throughout the production chain. They also suggest the creation of a global fund to finance post-mining activities, including land rehabilitation and support for local communities after a site closure. They call for investment in innovation to reduce the required quantity of these minerals and promote more responsible consumption and recycling.
Source: Novethic
Boeing’s Seattle workers down tools in first walkout since 2008
- Company: Boeing Co
- Sector: Capital Goods
- Clover rating: 4/10
Boeing Co. factory workers walked off the job for the first time in 16 years, crippling manufacturing across the planemaker’s Seattle commercial jet hub after members of its largest union rejected a contract offer and voted to strike. Members of the International Association of Machinists And Aerospace Workers, which represents 33,000 Boeing employees across the US West Coast, voted overwhelmingly to strike in September in Seattle, with 94.6% voting to reject the offer and 96% supporting a strike.
“This has been a long time coming, our members spoke loud and clear” said Jon Holden, president of IAM District 751, to a packed hall of union members and media. “Clearly there were aspects of this agreement that weren’t good enough.” Holden added that Boeing’s offer didn’t compensate for 16 years of stagnated wages, higher out-of-pocket health care costs and the relocation of thousands of union jobs.
By striking, members ignored a plea for peace by new Boeing Chief Executive Officer Kelly Ortberg, who has vowed to reset labor relations. And they bucked the recommendation of their own union leaders that they accept terms that included a 25% guaranteed wage increase over four years. While that’s the largest such pay hike ever offered by the planemaker, workers had expected a far greater increase. They were also angered that the terms also eliminated an annual bonus.
Nike shareholders vote against proposal on workers' rights
- Company: NIKE, Inc.
- Sector: Consumer Durables & Apparel
- Clover rating: 5/10
Nike shareholders have voted against a proposal to consider joining binding agreements with supply chain workers to better address human rights issues in high-risk countries at its annual meeting. The proposal was moved by an investor group led by Domini Impact Equity Fund, which was among more than 60 investors to sign a letter last year urging Nike to pay $2.2 million in allegedly unpaid wages to some 4,000 garment workers in Cambodia and Thailand.
Domini's proposal asked Nike to publish a report on the impact of adopting so-called worker-driven social responsibility (WSR), which creates binding agreements with workers on safety standards and remedies. Last week, Norway's wealth fund, Nike's ninth-biggest shareholder, backed the proposal, and also said it would vote against Nike executives' compensation, which it said had become excessive.
Bid for 7-Eleven owner shows Japan's governance gains, says Suntory CEO Niinami
- Companies: Suntory Beverage & Food Ltd; Seven & I Holdings Co Ltd
- Sector: Foods & Beverages; Consumer Staples Distribution & Retail
- Clover rating: 5/10; 7/10
A $39 billion Canadian takeover bid for 7-Eleven's owner indicates a shift in Japan's corporate governance and has left CEOs "nervous" that their companies could be next, the head of drinks giant Suntory Holdings said in September. He adds that Seven & I's response in rejecting the bid by Alimentation Couche-Tard also "demonstrates that Japan's corporate governance has been advancing."
Governance reforms and Japan's emergence from deflation are forcing companies to focus more on returns on equity, he said, adding the weak yen has been an "amplifier" for change as it puts more pressure on companies to create value or risk being acquired.
Source: Reuters
How the UK became the first G7 country to phase out coal power
The UK’s last coal-fired power plant, Ratcliffe-on-Soar in Nottinghamshire, will close this month, ending a 142-year era of burning coal to generate electricity. Such coal-power phaseout is internationally significant.
It is the first major economy – and first G7 member – to achieve this milestone. It also opened the world’s first coal-fired power station in 1882, on London’s Holborn Viaduct. From 1882 until Ratcliffe’s closure, the UK’s coal plants will have burned through 4.6bn tonnes of coal and emitted 10.4bn tonnes of carbon dioxide (CO2) – more than most countries have ever produced from all sources, Carbon Brief analysis shows.
The UK’s coal-power phaseout will help push overall coal demand to levels not seen since the 1600s. The phaseout was built on four key elements:
- First, the availability of alternative electricity sources, sufficient to meet and exceed rising demand.
- Second, bringing the construction of new coal capacity to an end.
- Third, pricing externalities, such as air pollution and carbon dioxide (CO2), thus tipping the economic scales in favour of alternatives.
- Fourth, the government setting a clear phaseout timeline a decade in advance, giving the power sector time to react and plan ahead.
The UK’s experience demonstrates that rapid coal phaseouts are possible – and could be replicated internationally. As the UK aims to fully decarbonise its power sector by 2030, it has the challenge – and opportunity – of trying to build another case study for successful climate action.
Sources: Carbon Brief, The Guardian
