Is everyone decarbonising? India, China? I get the feeling they're laughing all that way to the bank.
(All in favour of it, just everyone has to play along)
(All in favour of it, just everyone has to play along)
"Europe’s steelmakers have one more strong incentive to get decarbonising. Under the eu emissions-trading system, they are currently awarded 80% of their allowances for CO2 emissions free of charge in order to remain competitive with dirtier producers in places like China and India. Over the next ten years the eu will phase out these freebies and replace them with a carbon tariff on dirty imports. If eu steelmakers stay grey, calculates Morgan Stanley, their profits could sink by up to 70%."
It's worth doing even if others don't. Especially for the wealthy countries -- the poor countries emit relatively little carbon per capita.
The new energy transition is from op ex to cap ex. Looks expensive in the short term but a big win in the medium and long term. Plus you get the benefit of reduced emissions. Sure, other people do, but even if you're selfish it's a good deal.
[1] https://en.wikipedia.org/wiki/List_of_countries_by_carbon_di...
This infrastructure uses a lot of steel and concrete. It is not just an input for export goods - they are places for people to live.
Given that infrastructure building has set commodity prices for a decade, it wild be surprising if it wasn't the main part of thier emissions.
We can't begrudge Chinese, Indian and African people a modern way of life. Building that stuff emissions carbon. Its a difficult problem.
In a way trying to call a Chinese freeway an input emission for westbound exports is a moral cop-out.
Like whats the alternative: get into an arms race to see who can boil the oceans fastest? Oh but we'll make slightly more money than India from steel manufacturing so it will definitely be worth it?
If we believe that every country has the right to develop, than the poorest countries emission will increase. Better technology will flatten that increase but those are expensive. Wealthy countries pioneering the widespread use of these technologies will reduce cost and allow developing countries to deploy them in the future.
Like, instead of committing millions of your citizens to coal mining with picks and steam-powered lifts, you can just buy or produce turbines and solar panels, put them up and enjoy the benefits of electrification. Worst case, you build cheap has turbines and buy or pump LNG.
Being charitable, it’d clearly be an environmental disaster if everyone in the world consumed oil at the per capita level of OECD countries. I imagine global oil consumption would multiply manyfold.
> Wealthy countries pioneering the widespread use of these technologies will reduce cost and allow developing countries to deploy them in the future.
I too used to think this, but it seems like most of the progress in solar has come from China. Similar with nuclear power plants.
> China was responsible for about 38% of solar PV generation growth in 2021, thanks to large capacity additions in 2020 and 2021. The second largest generation growth (17% share of the total) was recorded in the United States, and third largest in the European Union (10%).
So yeah, I'm guessing it's mostly to sell to countries with better sar geographies, especially the US and Australia.
https://www.lemonde.fr/en/environment/article/2022/12/13/eu-...
2021 Henan flood killed hundreds and forced evacuation of 800k people.
Imagine what you want, but nobody's laughing any more.
The west might have burned its way to economic development, but developing nations are forging their own paths, and hydrocarbons aren’t the industrial requirement they used to be, or even the most economical way to producing energy. Choosing “green” alternatives also means choosing alternatives that faster and easier to deploy, work incredibly well in decentralised systems, and are often cheaper and easier to repair.
I don't know the solution because the problem is huge, but my strong suspicion is that focusing on industrial efficiency is the largest needle we can move. Specifically, making it economically sensible to use green technologies in developing countries.
Kind of like how China is a WTO member, claims to support Copyright, upholds Patent Law, and respects Intellectual Property. They also respect their Constitution, including the provisions for Freedom of Religion and Freedom of Speech, and have an independent Supreme Court to enforce checks-and-balances on their President. They also have a Functioning Democracy with 8 other political parties. Anyone who has actually interacted with them in any of those fields...
Being a democracy is actually bad for taking action on this issue. The Republicans are still denying climate change.
They also produce the vast majority of the world's solar panels.
https://www.fastmarkets.com/insights/chinas-roadmap-to-green...
World’s biggest steel maker (based in China) eyes new green steel plant in WA (Western Australia)
https://www.watoday.com.au/national/western-australia/world-...
> Western Australia is in the running to host a green steel plant bankrolled by the world’s biggest steel maker, China Baowu Group.
> During talks with Trade Minister Don Farrell in Beijing, company chairman Chen Dorong said the availability of clean energy and ore made Western Australia ideal as a site for the new facility.
> The biggest buyer of Australian iron ore wants to decarbonise operations but is also eyeing West Africa, South America and Saudi Arabia as alternatives.
The largest resource companies are making commitments they regret, but are now tied to public statements and shareholders to meet:
Rio Tinto boss says he regrets ambitious emissions targets
https://www.watoday.com.au/national/western-australia/rio-ti...
> Rio Tinto boss Jakob Stausholm has admitted he regrets the company’s ambitious emission reduction targets, doubling down on comments about the feasibility of moving to renewable energy at the pace expected.
> “There have been a lot of strong statements made [about the energy transition], but I don’t think people have realised and accounted for the process of getting the land, the cultural clearings and then executing the project,” Stausholm told a business breakfast in Perth on Friday.