Published on 12/12/2024
COP29: Key outcomes agreed at the UN climate talks in Baku
Developed nations have agreed to help channel “at least” $300bn a year into developing countries by 2035 to support their efforts to deal with climate change. However, the new climate-finance goal – agreed along with a range of other issues at the COP29 summit in Baku, Azerbaijan – has left developing countries bitterly disappointed. They were united in calling for developed countries to raise $1.3tn a year in climate finance. In the end, negotiators agreed on a looser call to raise $1.3tn each year from a wide range of sources, including private investment, by 2035. Some countries, including India and Nigeria, accused the COP29 presidency of pushing the deal through without their proper consent, following chaotic last-minute negotiations.
COP president Azerbaijan – a country that sources two-thirds of its government revenue from fossil fuels – faced accusations of conflict of interest and malpractice, with one minister labelling its hosting style “deplorable”.
In parallel, the COP 16 Desertification, lesser known than that on Climate and Biodiversity, published its report. Land degradation is expanding globally at a rate of 1 million km2 per year, jeopardizing efforts to stabilize the climate, protect nature, and ensure sustainable food supplies. The already degraded area is larger than Antarctica. The report calls for urgent action to prevent land misuse from irreversibly compromising Earth's ability to support human and environmental wellbeing.
Sources: Carbon Brief, Novethic, The Guardian
Nimble electric trucks are supercharging African trade
In Rwanda, farmers often face the challenge of their harvests spoiling before reaching the market due to long travel times and lack of refrigeration. However, Ox Delivers, a UK-based company, has developed an affordable, purpose-designed electric truck to address this issue, offering farmers a cost-effective way to transport their produce to market. According to Simon Davis, founder and CEO of Ox Delivers, their electric truck is almost 10 times cheaper to run compared to existing alternatives, and farmers can rent the space they need for as little as a dollar depending on weight and distance.
The journey of Ox Delivers began in 2013 when Sir Torquil Norman tasked Formula 1 race car designer Gordon Murray to design a vehicle for transporting goods in low-income countries. The result was a practical, easy-to-maintain truck that could be shipped in easy-to-assemble flatpacks. Ox Delivers has since transformed into a logistics company, offering farmers “ride shares” for their produce for less than a dollar. This initiative has significantly boosted farmers' profits and stimulated African trade.
The introduction of these electric trucks has encouraged farmers to grow more and sell more. For example, Jean Paul, a chili pepper farmer, has increased his weekly sales from 400 to 4,000 kilograms since using Ox's services. Claudine Uwiragiye also increased her cassava sales from two metric tons to three metric tons a week. Despite these successes, researchers argue that more needs to be done to holistically address Rwanda’s food waste problem. Jean Baptiste Ndahetuye from the Africa Centre of Excellence for Sustainable Cooling and Cold Chain (ACES) emphasizes that sustainable cold transport is only one part of a system of best practices that optimize food production.
Source: Reasons to be cheerful
Container shippers hedging green transition with dual-fuel vessel orders
Container shipping companies like Maersk, CMA CGM and COSCO have ordered hundreds of new vessels in recent years meant to help their industry slash greenhouse gas (GHG) emissions to meet rising demand from customers and regulators around the globe. Their order books, however, reflect uncertainty over which of a wide array of so-called green fuels will become the standard in the decades to come, and whether supplies will be cheap and abundant enough to keep their fleets in motion. "No single fuel or technology dominates," said Knut Orbeck-Nilssen, CEO of Maritime at Norway-based ship certifier DNV.
Faced with that reality, operators of the hulking vessels that ferry thousands of shipping boxes stuffed with furniture, televisions, shoes and toys destined for companies like Walmart, Amazon, IKEA and Nike, are hedging their bets by ramping up orders for hybrid engines designed for several different green fuel types, but which also allow them to fall back on petroleum if those green fuels are unavailable or too costly.
The maritime sector each year burns roughly 2.5 billion barrels of heavy fuel oil made from the cheap leftovers of gasoline, diesel and jet fuel production. Decarbonizing the entire shipping industry could cost over $100 billion per year, and double the industry's fuel prices, according to the U.N.'s Conference on Trade and Development. In the meantime, most ships that run on conventional fossil fuel can also run on biodiesel made from used cooking oil and other products. But supplies are forecast to fall far short of what would be needed for the maritime industry.
Source: Reuters
Green innovation shows new markets don’t have to be disruptive
Environmental progress doesn't have to come at a cost. Innovative solutions can often deliver economic benefits while addressing environmental challenges. One such example is the alliance between the oil and gas industry and Bitcoin mining. Oil companies have long been under pressure to reduce carbon emissions, particularly those caused by gas flaring – a process that releases excess gas during extraction. Bitcoin miners, however, have developed innovative methods to use this excess gas, converting it into electricity for mining. Companies like Crusoe Energy Systems and Giga Energy have developed systems to capture this gas and use it for Bitcoin mining, creating a win-win situation.
Another example of this innovative approach can be seen in the food industry. Food waste is a significant global issue, with restaurants often contributing to the problem due to excess ingredients and over-preparation. A Danish startup, Too Good To Go (TGTG), developed an app that connects restaurants with users, allowing them to purchase surplus food at reduced prices. This turns an expense into a revenue stream for restaurants, reduces food waste, and provides affordable food options for users.
These examples illustrate the principle of nondisruptive creation, an innovative approach that creates new markets without disrupting existing ones. This approach can align business objectives with environmental goals and transform the environmental agenda into a driver for profitable growth. This breaks the conventional belief that economic returns and environmental progress are mutually exclusive. Rather, as these cases show, aligning these two objectives can lead to a win-win situation for businesses, the environment, and society.
Source: Harvard Business Review
The people rebuilding their homes with earth
In the aftermath of devastating wildfires in Superior, Colorado, homeowners like Melanie Glover and her husband, Matteo Rebeschini, are choosing to rebuild their homes using earth blocks. Their decision comes from a desire to feel safer and the feeling that "dirt doesn't burn", as they said. Instead of rebuilding with traditional materials, they turned to Colorado Earth, a company that produces EcoBlox - compressed earth blocks made from waste material. The company, founded by Lisa Morey, provides an environmentally-friendly and potentially fire-resistant alternative to conventional building materials.
These blocks are made by mixing dirt with limestone and water, then using a hydraulic press to compress them into solid blocks. Unlike traditional bricks, they are made without heat, reducing the carbon footprint of each block. Additionally, earth block buildings result in 58% fewer emissions than light-frame wood buildings if they do burn in wildfires.
Despite the potential benefits of earth construction, including its fire resistance and lower carbon footprint, it hasn't gained widespread acceptance. Challenges such as project management, unfamiliarity, and lack of support from the construction industry, insurers, and mortgage lenders remain. However, the work of people like Glover, Rebeschini, and Morey showcases the potential of earth as a building material in fire-prone areas.
Sources: BBC, The Cool Down
Iceland embraced a shorter work week. Here’s how it turned out
Iceland’s economy is outperforming most European peers after the nationwide introduction of a shorter working week with no loss in pay, according to research released Friday. Between 2020 and 2022, 51% of workers in the country had accepted the offer of shorter working hours, including a four-day week, two think tanks found, saying the figure is likely to be even higher today. Last year, Iceland logged faster economic growth than most European countries and its unemployment rate is one of the lowest in Europe, noted the Autonomy Institute in the United Kingdom and Iceland’s Association for Sustainability and Democracy (Alda).
In 2023, Iceland’s economy expanded by 5%, a growth rate second only to that of Malta among European economies, according to the International Monetary Fund’s latest World Economic Outlook, published earlier this week. That is much higher than the country’s average growth rate of almost 2% in the decade between 2006 and 2015. Iceland’s low unemployment rate is “a strong indicator of the economy’s vitality,” the Autonomy Institute and Alda also said. According to the IMF’s World Economic Outlook, that rate stood at 3.4% last year, just over half the average for advanced European economies. The agency expects it to tick up slightly to 3.8% this year and next.
There have been a number of experiments with the four-day week around the world. This includes a successful trial in 2022 across 33 companies, with the majority based in the United States and Ireland.
Sources: CNN Business, World Economic Forum
BP to 'significantly reduce' renewables investment
- Company: BP
- Clover rating: 3/10
- Sector: Oil & Gas
BP chief executive Murray Auchincloss has scaled back on the group's key climate targets, putting more emphasis on oil and gas to boost profits, as it combines its offshore wind business with that of Japanese power company Jera.
Together the companies will invest up to $5.8 billion by 2030, with BP contributing $3.25 billion. It marks a sharp drop from previous suggestions that BP would invest around $10 billion in offshore wind between 2023 and 2030.
The move follows an announcement by rival Shell that it will no longer develop new offshore wind projects and will separate its power division into two connected businesses.
Britain drug-cost watchdog says it will recommend Lilly's obesity drug
- Company: Eli Lilly and Company
- Clover rating: 5/10
- Sector: Healthcare
NICE, the National Institute for Health and Care Excellence, is recommending Mounjaro from Eli Lilly, alongside diet and exercise changes, for people with at least one weight-related condition, such as heart disease or type 2 diabetes, and body mass index (BMI), a measure of body fat based on height and weight, of more than 35.
The guidelines mean that about 3.4 million people in England could be eligible to receive Mounjaro through the state-run National Health Service (NHS). Initially, in the first three-year period, those with the highest clinical need will be prioritised, it said.
Lilly said in a statement that it welcomed NICE's recommendation and understood that it will require a phased rollout.
Arcelormittal delays green steel investments
- Company: Arcelormittal
- Clover rating: 0/10
- Sector: Materials
Steelmaking and mining company ArcelorMittal announced in November that it would delay a final investment decision on a series of projects aimed at producing low carbon steel in Europe, with the company citing a lack of positive momentum in European policy, energy and market environments.
Steelmaking is one of the biggest emitters of CO2 globally, and one of the more challenging sectors to abate, with total greenhouse gas emissions (GHG) from the sector accounting for 7% – 9% of direct emissions from the global use of fossil fuels. The use of green hydrogen to fuel the production process is seen as one of the key potential solutions to help decarbonize the sector.
While ArcelorMittal noted that its host countries have offered to provide funding to support the projects, with the approval of the European Commission, key policy issues were not advancing sufficiently for the final investment decision, including the existence of “significant weaknesses in the carbon border adjustment mechanism (CBAM), the EU’s carbon tax on imported goods, with the need for protection measures to respond to overcapacity in China that is driving increasing imports”.
Amazon under fire: Workers unite in global protests for justice
- Company: Amazon.com, Inc.
- Clover rating: 4/10
- Sector: Internet & Software
In December, Amazon workers held a major strike during the holiday sales rush. The protests have been organised under the "Make Amazon Pay" campaign, which unites over 80 organizations advocating for labor rights, climate justice, and fair taxation. This movement aims to hold Amazon accountable for what they describe as labor abuses and environmental degradation. Workers from various countries – including the United States, India, Germany, the UK, Japan, and Brazil – participated in multiple demonstrations during this peak shopping weekend, highlighting their demands for better treatment and accountability from one of the world's most influential companies.
This year marks the fifth consecutive year of the "Make Amazon Pay" campaign, reflecting a growing global resistance against what many perceive as Amazon's unchecked power and influence. The coalition includes not only labor unions but also environmental groups like Greenpeace and tax justice organizations.
Amazon, the giant of e-commerce, is facing mounting scrutiny from its employees and the public regarding its environmental practices and labor conditions. The recent independent survey conducted by the AECJ found that 71% of Amazon employees feel that climate issues are not prioritized in the company’s business decisions. This sentiment reflects a broader concern among workers who want Amazon to take more substantial action toward sustainability.
Sources: Illuminem, The Guardian
Poor eating habits have a hidden exorbitant health cost
Overly processed food, poor in fruits and vegetables, too salty: bad habits have a hidden health cost of more than 8000 billion dollars per year, according to a report from the FAO, which calls for "urgent action" to transform agri-food systems. The costs are linked to productivity losses due to diseases caused by our diet (diabetes, cancers, cardiovascular diseases...).
This largely invisible cost adds to the already known and well-identified health costs. "To say that this doubles (the bill) is a reasonable order of magnitude," confirms David Laborde, director of the Agri-food Economics division at the FAO.
Depending on the country, this hidden burden represents up to 10% of GDP, particularly for some emerging states, notes the report, which covers 153 countries and 99% of the world's population. This estimate is a minimum, as the calculation does not include the phenomena of undernutrition, which are also costly, underlines the FAO.
The organization warns against the risk of placing the burden of these changes mainly on farmers, who are "on the front line". On the contrary, we must "get out of the current trap (...) where there is a tendency to transfer these costs onto the farmer", with the immediate consequence of protests like those seen in Europe.
Source: RTS