Table.Briefing: Climate (English)

Climate emergency: Assessment after five years + Denmark: Climate taxes on livestock farming + EU: CO2 reduction not ‘Fit for 55’

Dear reader,

Five years ago, everyone was determined to save the climate. Fridays for Future was at its peak, no election manifesto was complete without a climate plan, cities and municipalities declared a “climate emergency.” With the snap election in Germany approaching, climate change has taken a back seat in the public perception. But what has happened in Germany’s municipalities? Today, we look at what the “state of emergency” has changed and what has not.

However, the climate crisis does not rest just because it is largely ignored during this election campaign. That is why we continue to focus on overlooked issues: transport policy, where the German government coalition surprisingly achieved small successes; the Danish concept of including agriculture in emissions trading; the question of whether renewables still need base load in the power grid; and the warning of how the EU will miss its climate targets if it does not do significantly step up its efforts.

This could also play an important role in the election campaign. After all, some voices call for less ambition in the EU in particular. In any case, we hope that you enjoy today’s issue!

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Bernhard Pötter
Image of Bernhard  Pötter

Feature

Five years of ‘climate emergency’: Why many local authorities fail to effectively tackle climate change

Protests demanding acknowledgment of the climate emergency in Berlin in the summer of 2019.

In an open letter in late November, over 500 local government employees put climate action in Germany’s municipalities and cities back on the agenda: Their “Bundesverband Klimaschutz” (Federal Association for Climate Action) – similar to the German Association of Cities – calls for climate action to be enshrined in the Basic Law as a joint task of the federal and state governments, similar to coastal protection, and for it to be financially backed.

Despite many cities and municipalities declaring a “climate emergency” five years ago, the high expectations have hardly been met. Apart from isolated progress, municipal climate action has slipped down the political agenda. Yet municipalities influence around one-seventh of German emissions, approximately 100 million tons of CO2 annually.

Constance was the first German city to declare a “climate emergency” on May 2, 2019. Several dozen cities and municipalities throughout Germany followed suit. This was an expression of a “new urgency” and the “democratization of climate action,” says Thomas Brose, Executive Director of Climate Alliance. Fridays for Future brought millions of people onto the streets at the time, with climate action at the top of the political agenda for many. Isa Reher, founding member of the “Bundesverband Klimaschutz” and climate action manager of the Stormann district, also reflects positively: “This impetus needed to come from civil society, we would never have been able to achieve this in the administration.”

Fatigue, despite growing urgency

However, local governments have hardly made use of this tool of late. And the term is appearing less and less in debates. “There are now other political issues that have overshadowed the climate emergency,” says Markus Groth, a scientist from the Climate Service Center Germany (GERICS) at the Helmholtz-Zentrum Hereon. First the COVID-19 pandemic, then the war in Ukraine – the climate crisis suddenly no longer seems like the most urgent emergency that needs to be tackled.

Have we lost sight of the climate emergency? “Our member municipalities continue to implement measures,” says Brose. But after the very high expectations, he now sees some fatigue and disappointment in some places. The urgency of climate action has increased, and the topic is more present than ever, partly due to the many floods and droughts – even if there is not quite as much talk about it at the moment. Many measures are also being implemented, but “too little and too slowly.”

Less emission reduction than necessary

The concept of the “climate emergency” was discussed critically from the outset. On the one hand, because it is reminiscent of the emergency laws of the Nazi era. This is why the city of Kiel, for example, decided to use the English term. On the other hand, many critics consider the resolutions pure marketing. Climate emergency resolutions are not legally binding and are much more of a “political commitment,” says Groth.

After five years, Groth is unhappy with the results: “If we look at the reduction of greenhouse gases, cities and municipalities as a whole have not come as far as necessary,” he says. There are no reliable nationwide figures on this. Konstanz, for example, cut its emissions by around ten percent by the end of 2022 and is, therefore, behind schedule. The task of recording emissions also overburdens some cities: Landau, which also passed a resolution on the climate emergency in 2019, was unable to draw up a record of emissions reductions this summer, and many other cities have not yet published updated figures either.

Lack of funding and staff

According to Groth, many resolutions exist, but implementation is another matter. Progress is still being made on energy supply. But emissions from the residential and commercial sectors remain a big problem. “However, not much can be achieved with the funding and staff currently available to local governments,” says Groth. Climate action managers in cities are often left to their own devices and must monitor all areas. According to a survey by the German Environment Agency, only 54 percent of municipalities had any climate action staff at all at the end of 2022. Moreover, according to Groth, the positions are often only funded for a specific project period; however, efficient climate action requires them on a permanent basis.

Isa Reher from the Bundesverband Klimaschutz does not think climate action has disappeared from the limelight. On the contrary, she says, many cities and municipalities have now drawn up immediate climate action programs – often intending to achieve net zero at the municipal level by 2035 or even 2030. Measures have been developed and implementation has begun. In Reher’s view, these targets are “very ambitious.” However, she also admits that it is often unclear whether net zero can be achieved as quickly as planned.

She also cites real progress: It is now standard practice in many cities and municipalities for municipal decisions to be examined for their environmental impact. However, this assessment varies greatly from municipality to municipality – sometimes there are complex questionnaires, and occasionally administrative staff only have to tick a box to indicate whether they consider a project to be climate-relevant. Therefore, the actual impact of such “climate checks” on the climate can hardly be measured. According to Reher, some municipalities have already abolished such assessments because they were “too bureaucratic” and overburdened the administration.

Not enough funds for efficient climate action

According to Brose, many local governments lack the resources for more efficient climate action; in other words, they do not have enough money and staff. Empty public coffers exacerbate the problem. That is why the “Bundesverbands Klimaschutz” advocates climate action to be made a mandatory municipal task. Climate action manager Reher sees this critically: “The funding has already been used to create structures in small municipalities. If it becomes a mandatory task, many subsidies could be lost and local authorities would be even worse off. Under certain circumstances, tasks that are currently supported by subsidies would then have to be paid for from the tight municipal budgets.”

The Climate Adaptation Act, which came into force on July 1, now obligates local authorities to carry out adaptation measures. It is often still unclear who will foot the bill. A joint adaptation task proposed by Environment Minister Steffi Lemke failed due to opposition from the CDU/CSU. Such a joint federal, state and municipal task for local climate actionwould have the advantage that funds could be better passed on to local governments,” says Groth. Although there are currently many funding programs, small municipalities find it almost impossible to apply for them, he says. He believes that instead of taking the detour via funding programs, the German government should provide money directly – municipalities know best what measures are needed locally anyway.

  • Klimaanpassung

Climate tax on livestock: Lessons for Germany and the EU from Denmark

With a new climate tax, Denmark wants to incentivize practices in animal husbandry that reduce emissions.

Although the new EU Agriculture Commissioner Christophe Hansen recently rejected the idea of pricing agricultural emissions, Denmark is leading the way. Last week, a broad parliamentary majority approved an agreement that includes a tax on greenhouse gas emissions from livestock farming – the first of its kind in the world. The revenue is to flow back into the sector via support programs. Farmers’ associations and environmentalists were involved in the talks and support the agreement, which also includes measures against nitrate pollution and the rewetting of moors, among others.

Jørgen Eivind Olesen, head of the Department of Agroecology at Aarhus University, attributes the fact that this was politically possible in Denmark – despite some heated discussions beforehand – to several factors:

  • The agricultural sector accounts for a particularly high proportion of Danish greenhouse gas emissions: according to the EU Commission, this figure was 29% in 2023 – only Ireland has a higher figure across the EU. The realization has prevailed across party lines and among the public that the country must reduce agricultural emissions if it wants to achieve its climate targets.
  • A tradition of finding compromises between the government and stakeholders from different sides. Farmers’ representatives and NGOs worked more trustingly with each other and with the government than elsewhere.
  • The country has been gradually expanding regulatory measures to curb the environmental and climate impact of agriculture for a long time, while at the same time investing in new technologies. As a result, the climate tax has not come as a sudden, major step and has met with greater acceptance.

Climate-friendly practices instead of reducing livestock

From 2030, livestock farmers will initially be subject to a tax of 300 Danish kroner (€40) per ton of CO2 equivalents emitted, rising to 750 kroner (€101) by 2035. However, they will receive a basic amount back through tax relief – according to government estimates, on average around 60 percent of the additional costs. “The idea is to tax emissions above a certain threshold – in other words, those emissions that livestock farmers can avoid through climate-friendly practices,” explains Olesen. For example, through feed additives that minimize methane emissions or climate-friendly manure processing.

Reducing livestock numbers, on the other hand, is deliberately not the goal. Otherwise, production could simply move abroad, according to the scientist. Mathieu Mal from the European Environmental Bureau (EEB) therefore believes that the model does not go far enough. This is because drastically reducing the number of animals is the “only real solution” to reducing emissions in the sector. The tax is “too low, comes in too late, and more than half of the emissions are exempt,” criticizes the environmentalist.

Details of implementation still open

Olesen also acknowledges that the tax only covers a very limited proportion of emission sources, but argues that the first step is to develop a functioning implementation model before hopefully applying the new instrument more widely in the future. Many questions regarding the implementation of the step that has now been decided also still need to be clarified. For example, how the amount of CO2 equivalents for which a company has to pay the tax will be calculated, as the emissions cannot be measured directly.

From the researcher’s point of view, a model in which a certain amount of emissions per animal is calculated is plausible. If a farm demonstrably implements measures to reduce emissions, this value would be reduced by a certain factor. This can be implemented without excessive effort because the number of options for reducing emissions in animal husbandry is limited.

Denmark hopes to become a role model

From a practical point of view, Olesen believes that the model could be transferred to EU level without major difficulties. Politically, however, it seems rather unlikely that Germany or the EU will follow suit in the near future. In Brussels, it is not only the Agriculture Commissioner who is opposed to carbon pricing. Officials at the Directorate-General for Climate Action, which was actually considered to be more open to the idea, have also been reluctant recently. And the possible next Federal Minister of Agriculture, Günther Felßner, recently stated in an interview with Agrifood.Table that keeping animals does not harm the climate.

Nevertheless, Copenhagen is hoping to become a role model with the new tax. “I hope that this will show the world that it is possible to introduce a CO2 tax for the agricultural sector,” said Danish Climate Minister Lars Aagaard last week. The initiative should serve as “inspiration” for the debate on the future of EU agricultural policy. Environmentalist Mal also believes that the momentum from Denmark could advance the debate in Brussels: “The Danish agreement is far from perfect, but despite its weaknesses, it shows that more ambition and commitment to climate and environmental protection measures in the agricultural and food sector are possible.”

  • Klimaziele

Events

8. bis 9. September, Berlin
Summit Counter-gas summit
The Rosa-Luxemburg-Stiftung is organizing this “Counter-Gas Summit” as a counter-event to the World LNG Summit. LNG will be critically examined with a diverse program. Info

Dec. 9-12, Berlin
Conference World LNG Summit & World Renewables Conference
The conference will be held under the motto “Achieving the balance between energy security and decarbonization” and will primarily bring together players from the LNG industry. Info

Dec. 9-11, Brussels, Belgium
Dialog Shaping EU climate and energy policy – insights from and questions for the ARIADNE project
The Ariadne project will host a three-day event consisting of a series of workshops and discussion events, including topics like carbon markets, the architecture of EU climate policy and financing the energy transition. Info

Dec. 12, 11 a.m., Brussels
Launch Event Future of Emissions Trading System in the EU: Role of Emissions Trading in EU Climate Policy
This is the launch event of the ERCST report on the “Role of Emissions Trading in EU Climate Policy” under the framework of the “Future of the Emissions Trading in the EU” project. Info

News

Climate in Numbers: Europe could miss its 2030 emissions targets by 29 percent

According to a BloombergNEF analysis, Europe could exceed its energy-related CO2 emissions cap for 2030 by nine percent. If greenhouse gas emissions from other sectors are taken into account, the overshoot could be as high as 29 percent (702 million tons of CO₂ equivalent) – instead of the targeted 55 percent reduction in emissions by 2030.

The reasons for missing the targets are:

  • Slow electrification, for example, regarding heat pumps, electric vehicles and power grid expansion.
  • Low investment in renewable energies, grid infrastructure and CCS.
  • Technological gaps: Key technologies such as hydrogen production and sustainable aviation and shipping fuels are neither mature nor economical.

According to Bloomberg analysts, the EU remains far behind the requirements of a net-zero pathway by 2050. To remain on a net-zero pathway by 2050, the EU would have to reduce energy-related emissions by 84 percent to just half a gigaton of CO2 by 2040.

Bloomberg’s Net Zero scenario, in which the energy sector is fully decarbonized by 2050, also requires investments in renewable energies to increase by 23 percent compared to 2023, while spending on the sale of electric vehicles and charging infrastructure must triple. luk

  • EU-Klimaziel 2040

Transport policy: Agora sees big challenges for Germany’s next government

The German government’s transport policy has fallen far short of the promises made in the coalition agreement – and even further behind the climate policy necessities in the transport sector. This is the conclusion of an analysis by the Agora Verkehrswende think tank, which will be published this Thursday and was made available to Table.Briefings in advance. The next government therefore faces major challenges – also because the climate targets in the transport sector are binding at the EU level, and Germany risks falling well short of them.

The analysis positively highlights the reforms to the Road Traffic Act and the Road Traffic Regulations, which give local governments more options for promoting bus and bicycle traffic. It also praises the introduction of the CO2 component in the truck toll. In combination with the ongoing development of a charging infrastructure for trucks, this is likely to significantly accelerate the switch to electric vehicles in heavy goods transport, said Agora Verkehrswende Director Christian Hochfeld.

Progress has also been made in financing the basic renovation of the German rail network. Agora’s assessment of the 9 euro national public transport ticket and its successor, the Deutschlandticket, is mixed: These would have made the use of public transport more attractive due to their nationwide validity and lower price; however, because it is not sufficiently and permanently funded, the necessary investment in the expansion of public transport infrastructure could be jeopardized. The government has largely failed to reduce climate-damaging subsidies as promised. The EV ramp-up failed due to the abolition of the purchase premium and the decision against restructuring the vehicle tax. In addition, the ongoing debate surrounding e-fuels and abandoning the combustion engine ban has left many consumers uncertain.

Major investment offensive required

According to Hochfeld, the next government faces significant challenges. He believes that a major investment offensive is urgently needed to maintain the existing road and rail infrastructure and expand the rail network, public transport and charging infrastructure. This could be funded, at least in part, by cutting fossil fuel subsidies. It is also crucial to give the automotive industry planning security by not constantly calling long-term, necessary targets into question, Hochfeld says.

In Hochfeld’s view, it is important not to see the transport transition as a green project, but as “a project for all political parties.” He is concerned about the position of the CDU/CSU and FDP to weaken the EU fleet limits. “That would exacerbate the problems of German manufacturers,” said the Agora Director. This would only be viable for the future if the switch to electromobility succeeds quickly. He expects the CDU/CSU to reconsider its election campaign positions later on. After all, given the threat of fines if the EU climate targets are not met, “the later we start, the more it will cost.” mkr

  • Verkehrswende

ETS II: EU determines credit quantity for transport and buildings

On Tuesday, the EU Commission specified the starting quantity of carbon credits in the new emissions trading system for buildings and transport (ETS II): Around one billion tons of carbon credits will be issued in 2027. An additional 300 million tons will be frontloaded to guarantee a liquid market. However, these will be deducted from the quantities for subsequent years and will therefore not increase the total quantity.

It is based on a linear path for the emissions targets in 2030; the annual credit quantity will be reduced accordingly. Under certain circumstances, an additional reserve of 600 million credits can be added to the market in order to stabilize the carbon price. Particularly at the beginning of the trading phase, higher fluctuations could occur. “The initial, actual CO2 prices depend above all on how companies assess this market, what price expectations they have, and to what extent they stock up on allowances for the future,” explains Wilfried Rickels, Head of the Global Commons and Climate Policy Research Center at the Kiel Institute for the World Economy (IfW). Previous studies have calculated a price of up to 200 to 300 euros per ton of CO2 for 2030 – however, there is a “considerable spread in the prices,” says Rickels, as the studies refer to the avoidance costs of CO2 emissions and the starting credit quantity was previously unknown. lb

  • Emissions trading
  • ETS

CO2 removals: Researchers call for EU target for negative emissions

The European Union should present a climate target for 2055 with negative emissions. This is what climate researchers and emissions trading experts are calling for in a joint position paper led by Carbon Market Watch. It is true that the current EU climate target already includes the plan to be climate-neutral by 2050 and then net-negative. However, this has not yet been backed up with a concrete figure.

The researchers and policy experts want the EU to present this target by 2030 and to enshrine it in European climate law. The aim is to pave the way for negative emissions through CO2 removals in order to offset unavoidable residual emissions in areas that are difficult to decarbonize. CO2 removals are both technological (direct air capture) and natural (biomass) measures to remove carbon from the atmosphere. Individual target paths are also to be defined for the various methods of CO2 removal.

Climate target 2040: gross instead of net

In order to prevent CO2 removals from reducing emission reduction efforts, the next emission reduction target for the EU’s 2040 climate target should no longer be stated in net terms, but in gross terms, the paper continues. The amount of CO2 removals available by then would therefore have no influence on efforts to avoid emissions.

Fabien Ramos, Head of Carbon Removal at DG Clima, explained at the presentation of the paper in Brussels on Tuesday that the Commission will assess the role of CO2 removals for the 2040 climate target by 2026. The different methods would also be taken into account. Ramos also held out the prospect of adapting the EU Climate Law with regard to CO2 removals. However, he did not want to give a date. luk

  • Carbon Removal
  • Climate & Environment
  • EU climate policy
  • EU climate target 2040
  • EU-Klimaziel 2040

EUDR: Regulation is postponed, but not weakened

The EU Regulation on Deforestation-Free Supply Chains (EUDR) will apply one year later than planned, but its content will not be watered down. The negotiators from the EU Parliament and Council agreed on this on Tuesday evening. Rapporteur Christine Schneider (EPP) gave in: Her amendments did not make it into the final text. The trilogue result thus ultimately confirms the Commission’s proposal unchanged.

Schneider was only able to negotiate a political declaration from the Commission with no legally binding effect. In it, the Commission promises to make reporting obligations as lean as possible when implementing the existing law and to reduce red tape. Overall, the EPP’s approach caused a lot of head-shaking among the Commission and Council as well as industry representatives – see a detailed analysis in Europe.Table.

The Council and Parliament still have to confirm the trilogue agreement. The plenary vote in Parliament is planned for the session from December 16 to 19. It remains to be seen when and in what form the Council will finally approve the project. However, nothing stands in the way of timely adoption before the previously scheduled start of the regulations on December 30. jd/mgr/tho/luk/lb

  • Climate & Environment
  • Deforestation
  • Environmental policy
  • EVP
  • Forest
  • Wald

E-kerosene: Airlines and oil companies hardly invest in sustainable fuels

A ranking of sustainable aviation fuels (SAF) by Transport & Environment (T&E) warns of a double failure: Neither airlines nor oil companies have invested enough in e-kerosene, the transport association criticizes. 87 percent of the 77 airlines examined purchased too little SAF or the wrong type of SAF – for example, unsustainable biofuels made from foodstuffs such as corn instead of e-kerosene. This fuel, made from renewable electricity, is “the most sustainable and scalable type of SAF.”

T&E also considers biofuels made from waste to be sustainable. Air France-KLM, United Airlines and Norwegian, which top the ranking, rely on this and e-kerosene. Lufthansa, on the other hand, mainly uses non-sustainable biofuels. These account for 30 percent of SAF agreements in the industry, while e-kerosene only accounts for 10 percent.

Oil companies produce hardly any SAF and even less e-kerosene

In 2023, the airlines examined covered only 0.15 percent of their fuel consumption with SAF. This share is unlikely to increase by 2030, as the annual SAF production of oil companies such as TotalEnergies, Shell, BP and ExxonMobil accounts for less than three percent of their current kerosene production. The share of e-kerosene is negligible.

T&E recommends that the EU should therefore include e-fuels as a “priority investment” in the upcoming Clean Industrial Deal. According to Anja Köhne, an aviation expert at Germanwatch, Germany should “develop a realistic roadmap for the ramp-up of e-kerosene.” A recent study by T&E also highlighted the untapped potential of changing flight routes. An Atmosfair index also criticizes significant differences in efficiency between airlines, which are also reflected in the current T&E ranking. lb

  • Fossile Brennstoffe

Oil companies: Why investment in petrochemicals is considered risky

Oil companies overestimate the chemical industry’s future demand for their products. This means they are taking a high investment risk. This is the conclusion of a new report by the British think tank Carbon Tracker. The background: IEA forecasts predict that global fossil fuel demand will peak by the end of the decade and then decline. However, the IEA expects demand for liquefied natural gas in the petrochemical industry, in particular, to continue to grow.

(Too) high growth expectations

Carbon Tracker warns: “Faced with an existential threat to their legacy business segments, some companies are pivoting towards petrochemicals in a bid to diversify away from an increasingly obsolete product.” However, if this assumption is proven wrong, it could lead to “overinvestment and/or underestimation of future costs.” According to the report, this assumption would require demand for petrochemical products to grow steadily by 3.9 percent annually until 2035. The authors consider this to be highly optimistic and list four reasons why:

  • The global economy will not grow as fast as oil companies expect, and climate change will place an additional burden on it in the future.
  • Despite the failed UN negotiations in Busan, governments adopted stricter regulations for chemicals and plastics.
  • Liquid gas is a more important raw material for the petrochemical industry than crude oil.
  • The technology that could be used to increase the proportion of crude oil in petrochemical production is expensive and has not yet been commercially proven on a large scale.

What oil producers currently invest in

Due to the foreseeable decline in demand for fossil fuels, oil and gas companies are currently realigning their activities in three ways, as Carbon Tracker writes:

  • They keep their oil production high or even increase it to serve the petrochemical market.
  • They invest in refineries to produce petrochemical raw materials.
  • They are expanding their value chain and increasing their investments in chemical production.

However, not only companies, but also the oil state of Saudi Arabia, which recently blocked international climate and environmental negotiations, is reacting to the changes in the market. According to the IEA, the government has put the previously planned expansion of oil production capacities on hold. Instead, it now focuses on expanding the production of natural gas condensates and liquids. ae

  • Climate & Environment
  • Energie
  • Fossile Brennstoffe
  • Plastic
  • Plastik

Scientific energy supply study: Base load is ‘not necessary’

A reliable energy supply is also possible without baseload power plants. This is the result of a joint study by the German science academies as part of the “Energy Systems of the Future” (ESYS) project. Given that the funding policy focuses on baseload technologies – for example, the funding of fusion research – the result is remarkable.

Based on simulations, experts from ESYS – a joint initiative of acatech, Leopoldina and Akademienunion – have examined the question of whether base load power plants are necessary. They found that base load technologies such as nuclear power plants, geothermal energy, natural gas power plants with CO2 capture or potentially nuclear fusion power plants are not necessary for a sustainable and reliable power supply.

Focus on base load could mean high costs and delays

In contrast, “a combination of solar and wind energy plants with storage systems, a flexible hydrogen system, flexible electricity use and residual load power plants” is certainly needed, according to a corresponding press release. The latter are power plants that only run temporarily when needed, such as hydrogen-powered gas turbine power plants.

“For baseload power plants to lead to a substantial reduction in costs, their costs would have to fall significantly below the level forecast today,” emphasized Karen Pittel, Head of the Ifo Center for Energy. “In fact, we estimate that the risks of cost increases and delays in baseload technologies tend to be even higher than with the further expansion of solar and wind energy.”

Meaningful integration only if power plants are competitive

In an interview with Table.Briefings in August, energy systems expert Hans-Martin Henning, Director of the Fraunhofer Institute for Solar Energy Systems, predicted some of the study’s findings.

With regard to an academic paper on nuclear fusion, Henning confirmed that base load-capable power plants would also fit into a highly dynamic and flexible energy system in the future. “In the long term, large quantities of electricity will be needed to produce hydrogen and hydrogen derivatives, for example, for the chemical industry, for aviation, maritime shipping, and also for flexible power generation combined with renewable energies,” said Henning.

The recent study also concludes that baseload power plants could be integrated. However, they would have to be competitive and, due to their high investment costs, be in operation almost continuously in order to be profitable. “Gas-fired power plants are most likely to be feasible on a large scale in the next 20 years,” the experts estimate. They refer to innovative gas and steam combined cycle power plants for natural gas with subsequent carbon dioxide capture. tg

  • Erneuerbare Energien
  • Nuclear Fusion

Debt crisis: Developing countries pay 1.4 trillion dollars

Last year, developing countries spent more money on their national debt than what was promised to them in climate finance for 2035 at COP29: While the UN states agreed in Baku to mobilize a total of 1.3 trillion US dollars in aid, loans and investments for climate action and adaptation in 2035, poor countries spent “a record 1.4 trillion dollars to service their external debt in 2023, while interest costs rose to a 20-year high,” the World Bank explained at the presentation of this year’s International Debt Report.

Interest payments from developing countries alone climbed to 406 billion US dollars and “put pressure on the budgets of many countries in critical areas such as health, education and the environment,” according to the statement. The highest pressure is on the “poorest and most vulnerable countries.”

Even low-interest IDA loans burden national budgets

These countries are entitled to receive favorable loans from the World Bank subsidiary International Development Association (IDA) – but even servicing these loans accounts for up to 38 percent of IDA countries’ export earnings. The donor countries will replenish the IDA’s capital at a conference in South Korea on December 5 and 6, exceeding the previous three-year total of 93 billion.

The World Bank figures confirm the criticism from developing countries and NGOs that the resolutions on climate financing are too low and leave the poorest countries further in the debt trap. South Africa’s President Cyril Ramaphosa has announced that financial aid for climate damage in developing countries and debt relief for poor countries will be the focus of his G20 presidency next year. South Africa will be the first African country to chair the 19 major economies plus the EU and the African Union. bpo

  • COP29
  • Schuldenkrise

Must-Reads

Politico: Trump’s Colorado problem. 40 million US citizens live along the Colorado River. Due to climate change, the river already carries 20 percent less water than it did at the turn of the century. A new agreement on the use of the river is soon to be reached, and the Trump administration will have to be part of the negotiations. To the article

VOA: Journalists should explain climate change. The United Nations Environment Organization, UNESCO, calls for more studies and closer collaboration between journalists and scientists to ensure that the effects of climate change can be understood and mitigated. To the article

Reuters: Qatar invests in the British climate. Qatar will invest 1.3 billion US dollars in climate technology in the UK. Part of the money will be used to support the energy transition, the British government announced on Wednesday. To the article

Bloomberg: Indonesia must phase out coal. According to calculations by climate consultancy Ember, Indonesia must close several coal-fired power plants every year while tripling the share of renewable energies. This would enable Indonesia to achieve its new president’s goal of completely phasing out the use of fossil fuels by 2040. To the article

Climate.Table editorial team

CLIMATE.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    Five years ago, everyone was determined to save the climate. Fridays for Future was at its peak, no election manifesto was complete without a climate plan, cities and municipalities declared a “climate emergency.” With the snap election in Germany approaching, climate change has taken a back seat in the public perception. But what has happened in Germany’s municipalities? Today, we look at what the “state of emergency” has changed and what has not.

    However, the climate crisis does not rest just because it is largely ignored during this election campaign. That is why we continue to focus on overlooked issues: transport policy, where the German government coalition surprisingly achieved small successes; the Danish concept of including agriculture in emissions trading; the question of whether renewables still need base load in the power grid; and the warning of how the EU will miss its climate targets if it does not do significantly step up its efforts.

    This could also play an important role in the election campaign. After all, some voices call for less ambition in the EU in particular. In any case, we hope that you enjoy today’s issue!

    Your
    Bernhard Pötter
    Image of Bernhard  Pötter

    Feature

    Five years of ‘climate emergency’: Why many local authorities fail to effectively tackle climate change

    Protests demanding acknowledgment of the climate emergency in Berlin in the summer of 2019.

    In an open letter in late November, over 500 local government employees put climate action in Germany’s municipalities and cities back on the agenda: Their “Bundesverband Klimaschutz” (Federal Association for Climate Action) – similar to the German Association of Cities – calls for climate action to be enshrined in the Basic Law as a joint task of the federal and state governments, similar to coastal protection, and for it to be financially backed.

    Despite many cities and municipalities declaring a “climate emergency” five years ago, the high expectations have hardly been met. Apart from isolated progress, municipal climate action has slipped down the political agenda. Yet municipalities influence around one-seventh of German emissions, approximately 100 million tons of CO2 annually.

    Constance was the first German city to declare a “climate emergency” on May 2, 2019. Several dozen cities and municipalities throughout Germany followed suit. This was an expression of a “new urgency” and the “democratization of climate action,” says Thomas Brose, Executive Director of Climate Alliance. Fridays for Future brought millions of people onto the streets at the time, with climate action at the top of the political agenda for many. Isa Reher, founding member of the “Bundesverband Klimaschutz” and climate action manager of the Stormann district, also reflects positively: “This impetus needed to come from civil society, we would never have been able to achieve this in the administration.”

    Fatigue, despite growing urgency

    However, local governments have hardly made use of this tool of late. And the term is appearing less and less in debates. “There are now other political issues that have overshadowed the climate emergency,” says Markus Groth, a scientist from the Climate Service Center Germany (GERICS) at the Helmholtz-Zentrum Hereon. First the COVID-19 pandemic, then the war in Ukraine – the climate crisis suddenly no longer seems like the most urgent emergency that needs to be tackled.

    Have we lost sight of the climate emergency? “Our member municipalities continue to implement measures,” says Brose. But after the very high expectations, he now sees some fatigue and disappointment in some places. The urgency of climate action has increased, and the topic is more present than ever, partly due to the many floods and droughts – even if there is not quite as much talk about it at the moment. Many measures are also being implemented, but “too little and too slowly.”

    Less emission reduction than necessary

    The concept of the “climate emergency” was discussed critically from the outset. On the one hand, because it is reminiscent of the emergency laws of the Nazi era. This is why the city of Kiel, for example, decided to use the English term. On the other hand, many critics consider the resolutions pure marketing. Climate emergency resolutions are not legally binding and are much more of a “political commitment,” says Groth.

    After five years, Groth is unhappy with the results: “If we look at the reduction of greenhouse gases, cities and municipalities as a whole have not come as far as necessary,” he says. There are no reliable nationwide figures on this. Konstanz, for example, cut its emissions by around ten percent by the end of 2022 and is, therefore, behind schedule. The task of recording emissions also overburdens some cities: Landau, which also passed a resolution on the climate emergency in 2019, was unable to draw up a record of emissions reductions this summer, and many other cities have not yet published updated figures either.

    Lack of funding and staff

    According to Groth, many resolutions exist, but implementation is another matter. Progress is still being made on energy supply. But emissions from the residential and commercial sectors remain a big problem. “However, not much can be achieved with the funding and staff currently available to local governments,” says Groth. Climate action managers in cities are often left to their own devices and must monitor all areas. According to a survey by the German Environment Agency, only 54 percent of municipalities had any climate action staff at all at the end of 2022. Moreover, according to Groth, the positions are often only funded for a specific project period; however, efficient climate action requires them on a permanent basis.

    Isa Reher from the Bundesverband Klimaschutz does not think climate action has disappeared from the limelight. On the contrary, she says, many cities and municipalities have now drawn up immediate climate action programs – often intending to achieve net zero at the municipal level by 2035 or even 2030. Measures have been developed and implementation has begun. In Reher’s view, these targets are “very ambitious.” However, she also admits that it is often unclear whether net zero can be achieved as quickly as planned.

    She also cites real progress: It is now standard practice in many cities and municipalities for municipal decisions to be examined for their environmental impact. However, this assessment varies greatly from municipality to municipality – sometimes there are complex questionnaires, and occasionally administrative staff only have to tick a box to indicate whether they consider a project to be climate-relevant. Therefore, the actual impact of such “climate checks” on the climate can hardly be measured. According to Reher, some municipalities have already abolished such assessments because they were “too bureaucratic” and overburdened the administration.

    Not enough funds for efficient climate action

    According to Brose, many local governments lack the resources for more efficient climate action; in other words, they do not have enough money and staff. Empty public coffers exacerbate the problem. That is why the “Bundesverbands Klimaschutz” advocates climate action to be made a mandatory municipal task. Climate action manager Reher sees this critically: “The funding has already been used to create structures in small municipalities. If it becomes a mandatory task, many subsidies could be lost and local authorities would be even worse off. Under certain circumstances, tasks that are currently supported by subsidies would then have to be paid for from the tight municipal budgets.”

    The Climate Adaptation Act, which came into force on July 1, now obligates local authorities to carry out adaptation measures. It is often still unclear who will foot the bill. A joint adaptation task proposed by Environment Minister Steffi Lemke failed due to opposition from the CDU/CSU. Such a joint federal, state and municipal task for local climate actionwould have the advantage that funds could be better passed on to local governments,” says Groth. Although there are currently many funding programs, small municipalities find it almost impossible to apply for them, he says. He believes that instead of taking the detour via funding programs, the German government should provide money directly – municipalities know best what measures are needed locally anyway.

    • Klimaanpassung

    Climate tax on livestock: Lessons for Germany and the EU from Denmark

    With a new climate tax, Denmark wants to incentivize practices in animal husbandry that reduce emissions.

    Although the new EU Agriculture Commissioner Christophe Hansen recently rejected the idea of pricing agricultural emissions, Denmark is leading the way. Last week, a broad parliamentary majority approved an agreement that includes a tax on greenhouse gas emissions from livestock farming – the first of its kind in the world. The revenue is to flow back into the sector via support programs. Farmers’ associations and environmentalists were involved in the talks and support the agreement, which also includes measures against nitrate pollution and the rewetting of moors, among others.

    Jørgen Eivind Olesen, head of the Department of Agroecology at Aarhus University, attributes the fact that this was politically possible in Denmark – despite some heated discussions beforehand – to several factors:

    • The agricultural sector accounts for a particularly high proportion of Danish greenhouse gas emissions: according to the EU Commission, this figure was 29% in 2023 – only Ireland has a higher figure across the EU. The realization has prevailed across party lines and among the public that the country must reduce agricultural emissions if it wants to achieve its climate targets.
    • A tradition of finding compromises between the government and stakeholders from different sides. Farmers’ representatives and NGOs worked more trustingly with each other and with the government than elsewhere.
    • The country has been gradually expanding regulatory measures to curb the environmental and climate impact of agriculture for a long time, while at the same time investing in new technologies. As a result, the climate tax has not come as a sudden, major step and has met with greater acceptance.

    Climate-friendly practices instead of reducing livestock

    From 2030, livestock farmers will initially be subject to a tax of 300 Danish kroner (€40) per ton of CO2 equivalents emitted, rising to 750 kroner (€101) by 2035. However, they will receive a basic amount back through tax relief – according to government estimates, on average around 60 percent of the additional costs. “The idea is to tax emissions above a certain threshold – in other words, those emissions that livestock farmers can avoid through climate-friendly practices,” explains Olesen. For example, through feed additives that minimize methane emissions or climate-friendly manure processing.

    Reducing livestock numbers, on the other hand, is deliberately not the goal. Otherwise, production could simply move abroad, according to the scientist. Mathieu Mal from the European Environmental Bureau (EEB) therefore believes that the model does not go far enough. This is because drastically reducing the number of animals is the “only real solution” to reducing emissions in the sector. The tax is “too low, comes in too late, and more than half of the emissions are exempt,” criticizes the environmentalist.

    Details of implementation still open

    Olesen also acknowledges that the tax only covers a very limited proportion of emission sources, but argues that the first step is to develop a functioning implementation model before hopefully applying the new instrument more widely in the future. Many questions regarding the implementation of the step that has now been decided also still need to be clarified. For example, how the amount of CO2 equivalents for which a company has to pay the tax will be calculated, as the emissions cannot be measured directly.

    From the researcher’s point of view, a model in which a certain amount of emissions per animal is calculated is plausible. If a farm demonstrably implements measures to reduce emissions, this value would be reduced by a certain factor. This can be implemented without excessive effort because the number of options for reducing emissions in animal husbandry is limited.

    Denmark hopes to become a role model

    From a practical point of view, Olesen believes that the model could be transferred to EU level without major difficulties. Politically, however, it seems rather unlikely that Germany or the EU will follow suit in the near future. In Brussels, it is not only the Agriculture Commissioner who is opposed to carbon pricing. Officials at the Directorate-General for Climate Action, which was actually considered to be more open to the idea, have also been reluctant recently. And the possible next Federal Minister of Agriculture, Günther Felßner, recently stated in an interview with Agrifood.Table that keeping animals does not harm the climate.

    Nevertheless, Copenhagen is hoping to become a role model with the new tax. “I hope that this will show the world that it is possible to introduce a CO2 tax for the agricultural sector,” said Danish Climate Minister Lars Aagaard last week. The initiative should serve as “inspiration” for the debate on the future of EU agricultural policy. Environmentalist Mal also believes that the momentum from Denmark could advance the debate in Brussels: “The Danish agreement is far from perfect, but despite its weaknesses, it shows that more ambition and commitment to climate and environmental protection measures in the agricultural and food sector are possible.”

    • Klimaziele

    Events

    8. bis 9. September, Berlin
    Summit Counter-gas summit
    The Rosa-Luxemburg-Stiftung is organizing this “Counter-Gas Summit” as a counter-event to the World LNG Summit. LNG will be critically examined with a diverse program. Info

    Dec. 9-12, Berlin
    Conference World LNG Summit & World Renewables Conference
    The conference will be held under the motto “Achieving the balance between energy security and decarbonization” and will primarily bring together players from the LNG industry. Info

    Dec. 9-11, Brussels, Belgium
    Dialog Shaping EU climate and energy policy – insights from and questions for the ARIADNE project
    The Ariadne project will host a three-day event consisting of a series of workshops and discussion events, including topics like carbon markets, the architecture of EU climate policy and financing the energy transition. Info

    Dec. 12, 11 a.m., Brussels
    Launch Event Future of Emissions Trading System in the EU: Role of Emissions Trading in EU Climate Policy
    This is the launch event of the ERCST report on the “Role of Emissions Trading in EU Climate Policy” under the framework of the “Future of the Emissions Trading in the EU” project. Info

    News

    Climate in Numbers: Europe could miss its 2030 emissions targets by 29 percent

    According to a BloombergNEF analysis, Europe could exceed its energy-related CO2 emissions cap for 2030 by nine percent. If greenhouse gas emissions from other sectors are taken into account, the overshoot could be as high as 29 percent (702 million tons of CO₂ equivalent) – instead of the targeted 55 percent reduction in emissions by 2030.

    The reasons for missing the targets are:

    • Slow electrification, for example, regarding heat pumps, electric vehicles and power grid expansion.
    • Low investment in renewable energies, grid infrastructure and CCS.
    • Technological gaps: Key technologies such as hydrogen production and sustainable aviation and shipping fuels are neither mature nor economical.

    According to Bloomberg analysts, the EU remains far behind the requirements of a net-zero pathway by 2050. To remain on a net-zero pathway by 2050, the EU would have to reduce energy-related emissions by 84 percent to just half a gigaton of CO2 by 2040.

    Bloomberg’s Net Zero scenario, in which the energy sector is fully decarbonized by 2050, also requires investments in renewable energies to increase by 23 percent compared to 2023, while spending on the sale of electric vehicles and charging infrastructure must triple. luk

    • EU-Klimaziel 2040

    Transport policy: Agora sees big challenges for Germany’s next government

    The German government’s transport policy has fallen far short of the promises made in the coalition agreement – and even further behind the climate policy necessities in the transport sector. This is the conclusion of an analysis by the Agora Verkehrswende think tank, which will be published this Thursday and was made available to Table.Briefings in advance. The next government therefore faces major challenges – also because the climate targets in the transport sector are binding at the EU level, and Germany risks falling well short of them.

    The analysis positively highlights the reforms to the Road Traffic Act and the Road Traffic Regulations, which give local governments more options for promoting bus and bicycle traffic. It also praises the introduction of the CO2 component in the truck toll. In combination with the ongoing development of a charging infrastructure for trucks, this is likely to significantly accelerate the switch to electric vehicles in heavy goods transport, said Agora Verkehrswende Director Christian Hochfeld.

    Progress has also been made in financing the basic renovation of the German rail network. Agora’s assessment of the 9 euro national public transport ticket and its successor, the Deutschlandticket, is mixed: These would have made the use of public transport more attractive due to their nationwide validity and lower price; however, because it is not sufficiently and permanently funded, the necessary investment in the expansion of public transport infrastructure could be jeopardized. The government has largely failed to reduce climate-damaging subsidies as promised. The EV ramp-up failed due to the abolition of the purchase premium and the decision against restructuring the vehicle tax. In addition, the ongoing debate surrounding e-fuels and abandoning the combustion engine ban has left many consumers uncertain.

    Major investment offensive required

    According to Hochfeld, the next government faces significant challenges. He believes that a major investment offensive is urgently needed to maintain the existing road and rail infrastructure and expand the rail network, public transport and charging infrastructure. This could be funded, at least in part, by cutting fossil fuel subsidies. It is also crucial to give the automotive industry planning security by not constantly calling long-term, necessary targets into question, Hochfeld says.

    In Hochfeld’s view, it is important not to see the transport transition as a green project, but as “a project for all political parties.” He is concerned about the position of the CDU/CSU and FDP to weaken the EU fleet limits. “That would exacerbate the problems of German manufacturers,” said the Agora Director. This would only be viable for the future if the switch to electromobility succeeds quickly. He expects the CDU/CSU to reconsider its election campaign positions later on. After all, given the threat of fines if the EU climate targets are not met, “the later we start, the more it will cost.” mkr

    • Verkehrswende

    ETS II: EU determines credit quantity for transport and buildings

    On Tuesday, the EU Commission specified the starting quantity of carbon credits in the new emissions trading system for buildings and transport (ETS II): Around one billion tons of carbon credits will be issued in 2027. An additional 300 million tons will be frontloaded to guarantee a liquid market. However, these will be deducted from the quantities for subsequent years and will therefore not increase the total quantity.

    It is based on a linear path for the emissions targets in 2030; the annual credit quantity will be reduced accordingly. Under certain circumstances, an additional reserve of 600 million credits can be added to the market in order to stabilize the carbon price. Particularly at the beginning of the trading phase, higher fluctuations could occur. “The initial, actual CO2 prices depend above all on how companies assess this market, what price expectations they have, and to what extent they stock up on allowances for the future,” explains Wilfried Rickels, Head of the Global Commons and Climate Policy Research Center at the Kiel Institute for the World Economy (IfW). Previous studies have calculated a price of up to 200 to 300 euros per ton of CO2 for 2030 – however, there is a “considerable spread in the prices,” says Rickels, as the studies refer to the avoidance costs of CO2 emissions and the starting credit quantity was previously unknown. lb

    • Emissions trading
    • ETS

    CO2 removals: Researchers call for EU target for negative emissions

    The European Union should present a climate target for 2055 with negative emissions. This is what climate researchers and emissions trading experts are calling for in a joint position paper led by Carbon Market Watch. It is true that the current EU climate target already includes the plan to be climate-neutral by 2050 and then net-negative. However, this has not yet been backed up with a concrete figure.

    The researchers and policy experts want the EU to present this target by 2030 and to enshrine it in European climate law. The aim is to pave the way for negative emissions through CO2 removals in order to offset unavoidable residual emissions in areas that are difficult to decarbonize. CO2 removals are both technological (direct air capture) and natural (biomass) measures to remove carbon from the atmosphere. Individual target paths are also to be defined for the various methods of CO2 removal.

    Climate target 2040: gross instead of net

    In order to prevent CO2 removals from reducing emission reduction efforts, the next emission reduction target for the EU’s 2040 climate target should no longer be stated in net terms, but in gross terms, the paper continues. The amount of CO2 removals available by then would therefore have no influence on efforts to avoid emissions.

    Fabien Ramos, Head of Carbon Removal at DG Clima, explained at the presentation of the paper in Brussels on Tuesday that the Commission will assess the role of CO2 removals for the 2040 climate target by 2026. The different methods would also be taken into account. Ramos also held out the prospect of adapting the EU Climate Law with regard to CO2 removals. However, he did not want to give a date. luk

    • Carbon Removal
    • Climate & Environment
    • EU climate policy
    • EU climate target 2040
    • EU-Klimaziel 2040

    EUDR: Regulation is postponed, but not weakened

    The EU Regulation on Deforestation-Free Supply Chains (EUDR) will apply one year later than planned, but its content will not be watered down. The negotiators from the EU Parliament and Council agreed on this on Tuesday evening. Rapporteur Christine Schneider (EPP) gave in: Her amendments did not make it into the final text. The trilogue result thus ultimately confirms the Commission’s proposal unchanged.

    Schneider was only able to negotiate a political declaration from the Commission with no legally binding effect. In it, the Commission promises to make reporting obligations as lean as possible when implementing the existing law and to reduce red tape. Overall, the EPP’s approach caused a lot of head-shaking among the Commission and Council as well as industry representatives – see a detailed analysis in Europe.Table.

    The Council and Parliament still have to confirm the trilogue agreement. The plenary vote in Parliament is planned for the session from December 16 to 19. It remains to be seen when and in what form the Council will finally approve the project. However, nothing stands in the way of timely adoption before the previously scheduled start of the regulations on December 30. jd/mgr/tho/luk/lb

    • Climate & Environment
    • Deforestation
    • Environmental policy
    • EVP
    • Forest
    • Wald

    E-kerosene: Airlines and oil companies hardly invest in sustainable fuels

    A ranking of sustainable aviation fuels (SAF) by Transport & Environment (T&E) warns of a double failure: Neither airlines nor oil companies have invested enough in e-kerosene, the transport association criticizes. 87 percent of the 77 airlines examined purchased too little SAF or the wrong type of SAF – for example, unsustainable biofuels made from foodstuffs such as corn instead of e-kerosene. This fuel, made from renewable electricity, is “the most sustainable and scalable type of SAF.”

    T&E also considers biofuels made from waste to be sustainable. Air France-KLM, United Airlines and Norwegian, which top the ranking, rely on this and e-kerosene. Lufthansa, on the other hand, mainly uses non-sustainable biofuels. These account for 30 percent of SAF agreements in the industry, while e-kerosene only accounts for 10 percent.

    Oil companies produce hardly any SAF and even less e-kerosene

    In 2023, the airlines examined covered only 0.15 percent of their fuel consumption with SAF. This share is unlikely to increase by 2030, as the annual SAF production of oil companies such as TotalEnergies, Shell, BP and ExxonMobil accounts for less than three percent of their current kerosene production. The share of e-kerosene is negligible.

    T&E recommends that the EU should therefore include e-fuels as a “priority investment” in the upcoming Clean Industrial Deal. According to Anja Köhne, an aviation expert at Germanwatch, Germany should “develop a realistic roadmap for the ramp-up of e-kerosene.” A recent study by T&E also highlighted the untapped potential of changing flight routes. An Atmosfair index also criticizes significant differences in efficiency between airlines, which are also reflected in the current T&E ranking. lb

    • Fossile Brennstoffe

    Oil companies: Why investment in petrochemicals is considered risky

    Oil companies overestimate the chemical industry’s future demand for their products. This means they are taking a high investment risk. This is the conclusion of a new report by the British think tank Carbon Tracker. The background: IEA forecasts predict that global fossil fuel demand will peak by the end of the decade and then decline. However, the IEA expects demand for liquefied natural gas in the petrochemical industry, in particular, to continue to grow.

    (Too) high growth expectations

    Carbon Tracker warns: “Faced with an existential threat to their legacy business segments, some companies are pivoting towards petrochemicals in a bid to diversify away from an increasingly obsolete product.” However, if this assumption is proven wrong, it could lead to “overinvestment and/or underestimation of future costs.” According to the report, this assumption would require demand for petrochemical products to grow steadily by 3.9 percent annually until 2035. The authors consider this to be highly optimistic and list four reasons why:

    • The global economy will not grow as fast as oil companies expect, and climate change will place an additional burden on it in the future.
    • Despite the failed UN negotiations in Busan, governments adopted stricter regulations for chemicals and plastics.
    • Liquid gas is a more important raw material for the petrochemical industry than crude oil.
    • The technology that could be used to increase the proportion of crude oil in petrochemical production is expensive and has not yet been commercially proven on a large scale.

    What oil producers currently invest in

    Due to the foreseeable decline in demand for fossil fuels, oil and gas companies are currently realigning their activities in three ways, as Carbon Tracker writes:

    • They keep their oil production high or even increase it to serve the petrochemical market.
    • They invest in refineries to produce petrochemical raw materials.
    • They are expanding their value chain and increasing their investments in chemical production.

    However, not only companies, but also the oil state of Saudi Arabia, which recently blocked international climate and environmental negotiations, is reacting to the changes in the market. According to the IEA, the government has put the previously planned expansion of oil production capacities on hold. Instead, it now focuses on expanding the production of natural gas condensates and liquids. ae

    • Climate & Environment
    • Energie
    • Fossile Brennstoffe
    • Plastic
    • Plastik

    Scientific energy supply study: Base load is ‘not necessary’

    A reliable energy supply is also possible without baseload power plants. This is the result of a joint study by the German science academies as part of the “Energy Systems of the Future” (ESYS) project. Given that the funding policy focuses on baseload technologies – for example, the funding of fusion research – the result is remarkable.

    Based on simulations, experts from ESYS – a joint initiative of acatech, Leopoldina and Akademienunion – have examined the question of whether base load power plants are necessary. They found that base load technologies such as nuclear power plants, geothermal energy, natural gas power plants with CO2 capture or potentially nuclear fusion power plants are not necessary for a sustainable and reliable power supply.

    Focus on base load could mean high costs and delays

    In contrast, “a combination of solar and wind energy plants with storage systems, a flexible hydrogen system, flexible electricity use and residual load power plants” is certainly needed, according to a corresponding press release. The latter are power plants that only run temporarily when needed, such as hydrogen-powered gas turbine power plants.

    “For baseload power plants to lead to a substantial reduction in costs, their costs would have to fall significantly below the level forecast today,” emphasized Karen Pittel, Head of the Ifo Center for Energy. “In fact, we estimate that the risks of cost increases and delays in baseload technologies tend to be even higher than with the further expansion of solar and wind energy.”

    Meaningful integration only if power plants are competitive

    In an interview with Table.Briefings in August, energy systems expert Hans-Martin Henning, Director of the Fraunhofer Institute for Solar Energy Systems, predicted some of the study’s findings.

    With regard to an academic paper on nuclear fusion, Henning confirmed that base load-capable power plants would also fit into a highly dynamic and flexible energy system in the future. “In the long term, large quantities of electricity will be needed to produce hydrogen and hydrogen derivatives, for example, for the chemical industry, for aviation, maritime shipping, and also for flexible power generation combined with renewable energies,” said Henning.

    The recent study also concludes that baseload power plants could be integrated. However, they would have to be competitive and, due to their high investment costs, be in operation almost continuously in order to be profitable. “Gas-fired power plants are most likely to be feasible on a large scale in the next 20 years,” the experts estimate. They refer to innovative gas and steam combined cycle power plants for natural gas with subsequent carbon dioxide capture. tg

    • Erneuerbare Energien
    • Nuclear Fusion

    Debt crisis: Developing countries pay 1.4 trillion dollars

    Last year, developing countries spent more money on their national debt than what was promised to them in climate finance for 2035 at COP29: While the UN states agreed in Baku to mobilize a total of 1.3 trillion US dollars in aid, loans and investments for climate action and adaptation in 2035, poor countries spent “a record 1.4 trillion dollars to service their external debt in 2023, while interest costs rose to a 20-year high,” the World Bank explained at the presentation of this year’s International Debt Report.

    Interest payments from developing countries alone climbed to 406 billion US dollars and “put pressure on the budgets of many countries in critical areas such as health, education and the environment,” according to the statement. The highest pressure is on the “poorest and most vulnerable countries.”

    Even low-interest IDA loans burden national budgets

    These countries are entitled to receive favorable loans from the World Bank subsidiary International Development Association (IDA) – but even servicing these loans accounts for up to 38 percent of IDA countries’ export earnings. The donor countries will replenish the IDA’s capital at a conference in South Korea on December 5 and 6, exceeding the previous three-year total of 93 billion.

    The World Bank figures confirm the criticism from developing countries and NGOs that the resolutions on climate financing are too low and leave the poorest countries further in the debt trap. South Africa’s President Cyril Ramaphosa has announced that financial aid for climate damage in developing countries and debt relief for poor countries will be the focus of his G20 presidency next year. South Africa will be the first African country to chair the 19 major economies plus the EU and the African Union. bpo

    • COP29
    • Schuldenkrise

    Must-Reads

    Politico: Trump’s Colorado problem. 40 million US citizens live along the Colorado River. Due to climate change, the river already carries 20 percent less water than it did at the turn of the century. A new agreement on the use of the river is soon to be reached, and the Trump administration will have to be part of the negotiations. To the article

    VOA: Journalists should explain climate change. The United Nations Environment Organization, UNESCO, calls for more studies and closer collaboration between journalists and scientists to ensure that the effects of climate change can be understood and mitigated. To the article

    Reuters: Qatar invests in the British climate. Qatar will invest 1.3 billion US dollars in climate technology in the UK. Part of the money will be used to support the energy transition, the British government announced on Wednesday. To the article

    Bloomberg: Indonesia must phase out coal. According to calculations by climate consultancy Ember, Indonesia must close several coal-fired power plants every year while tripling the share of renewable energies. This would enable Indonesia to achieve its new president’s goal of completely phasing out the use of fossil fuels by 2040. To the article

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