Tag: Net Zero Emissions

This CIO points out two risks that Indian market investors need to watch out for

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Krishna Sanghavi, CIO of Equities at Mahindra Manulife Investment Management, believes while India is a in a sweet spot currently, investors in should be vigilant about two factors: global developments and the risk of complacency.

One clear risk is the global context, as India is deeply integrated with it.  Investors must recognise that Indian markets are trading at high valuations compared to other global markets and such valuations depend heavily on positive sentiment, which needs to be maintained, he noted.

“The second risk, in the Indian context, is that expectations are so strong among investors…one is on the earnings growth itself where expectations are high in terms of the ability to do much faster. The second part is the belief that because nothing much can go wrong, let me take a leverage route to participation (in the market),” said Sanghavi who manages nearly $2.3 billion in funds.

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In a chat with CNBC-TV18, he also talked at length about the themes that his portfolio focusses on.

“The core economies is a theme which we like. And that’s pretty much part of our portfolio is focusing more on…the capacity creation for next five to seven years…the other part is India manufacturing, which is an inter linkage to it. Let’s put it this way. The core economy provides the infrastructure support while manufacturing is the next story for India,” he said.

The core segment of the economy, he noted, is now growing after 10 years of underinvestment.

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In renewable energy, he believes transition is a must and the right steps are happening on that front. So parallelly, every utility is investing in renewable as well as in thermal, he said.

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“India is the only country which has a target to be net zero by 2070. So the very fact that you have a 45-year runway of achieving net zero, there is a fair chance that we are going to consume more of those products before you reach your peaking point and from where the reduction starts,” he noted.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mission Net Zero Summit set to be held in New Delhi on Dec 7-8

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The first Mission Net Zero India Summit is slated to be held in New Delhi on December 7 and 8, supported by the Ministry of Road Transport and Highways, the Ministry of Heavy Industries, the Department of Transport and Government of the NCT of Delhi, Niti Ayog and the Kerala government.

The event will be majorly focused on India’s goal of achieving energy transition and decarbonisation goals with affordability, sustainability, and energy independence. 

The event will include three key conference tracks: Empowering India’s Energy Sector to Achieve Net Zero, AtoZero: Accelerating India’s Leadership in Renewables and Next Mobility: Pathway to Decarbonising the Transport Sector.

In these three conference tracks, the Public Sector Undertakings (PSUs), various ministries and private sector companies will have discussions on India’s strategy for long-term low-carbon growth that will include accelerating the adoption of renewables, electrification in manufacturing, cleaner mobility solutions, and energy efficiency, among others.

The Mission Net Zero India Summit will be jointly organised by Constellar and Messe Frankfurt India and will include the following government officials as speakers: Dr. Hanif Qureshi, IPS, Joint Secretary, Ministry of Heavy Industries, Government of India, Sanjay Dubey, IAS, Principal Secretary, Energy Department, Government of Madhya Pradesh and Ashish Kundra, IAS, Principal Secretary and Commissioner (Transport), Government of NCT of Delhi amongst other speakers.

Various leading organisations and associations in the sector along with several corporates are expected to be in the attendance at the event in the national capital.

Paul Lee, Chief Executive (Markets), Constellar said, “Recognising that major nations play a pivotal role in moving the dial towards sustainability, the Summit becomes a powerful platform to leverage their influence, collective expertise, cutting-edge technology, and innovative solutions. Together, these global leaders will forge sustainable roadmaps for a clean energy future, catalysing action and shaping a more sustainable and resilient tomorrow.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Second-hand shopping a $1-billion-plus business for Amazon in Europe

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Consumer demand for refurbished and pre-owned goods in Britain and across Europe has created a billion pound ($1.3 billion) business for Amazon, its UK boss said.

Many retailers and manufacturers expect that trend to continue as shoppers, hit by rising prices and borrowing costs, look to save cash and buy more sustainably.

John Boumphrey, Amazon’s UK Country Manager, told reporters that in the UK alone the online retail giant last year sold more than 4 million used or refurbished products at a discount.

In the first nine months of 2023, Amazon’s sales of second-hand goods in the UK increased by more than 15% on the same period last year, he added.

Amazon UK’s total revenue in 2022 was 24 billion pounds.

“Customers are telling us that they’re shopping second hand items to save money in the ongoing cost of living crisis and because they want to shop more sustainably,” Boumphrey told reporters.

He was speaking at the launch of Amazon UK’s “Second Chance Store” – a Christmas pop-up shop in London selling returned and refurbished items.

Amazon has a goal to have net zero carbon emissions by 2040.

Many environmental campaigners are sceptical about the willingness of major companies to cut emissions, seeing it as more of a public relations exercise. But large companies say they can make a difference due to their scale.

Regulatory change

Boumphrey also told Reuters that Amazon bosses were frustrated by the amount of regulatory change in Europe, and Britain in particular, and were questioning whether they have enough visibility to invest.

“There’s an awful lot of changes to regulation, not only in the UK but also in Europe, and one of the things they’re asking is: is this going to give us long term certainty,” he said in an interview.

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He highlighted concerns over the Digital Markets, Competition and Consumers Bill, currently making its way through the UK parliament, which will give Britain’s antitrust regulator legal powers to tailor rules for big tech companies.

Boumphrey’s comments come after the UK government this week hailed 29.5 billion pounds of foreign investment as a sign Britain was regaining its business appeal following the uncertainty triggered by its departure from the European Union and last year’s political turmoil.

Amazon has invested 56 billion pounds in Britain since 2010, including 12 billion in 2022 alone, Boumphrey said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Net zero emission positive solution to combat air pollution and boost green tech: Jayant Sinha 

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Global net zero by 2050 achievable but need more funds & co-operation: IEA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The International Energy Agency (IEA) on Tuesday reaffirmed that the goal of limiting global warming to 1.5 degrees Celsius is still within reach, thanks to record growth in key clean energy technologies but it requires additional funds and increased global co-operation.

The agency said that a more robust and immediate action is necessary in this decade to stay on course. The updated roadmap sets ambitious targets. It emphasises on tripling global renewable power capacity to 11,000 GW by 2030. Additionally, it advocates for universal access to modern forms of energy by 2030 through an annual investment of approximately $45 billion, equivalent to just over 1 percent of the energy sector’s total investment.

The roadmap also includes reducing energy sector methane emissions by 75 percent. These strategies, based on proven and cost-effective technologies, collectively contribute over 80 percent of the required emissions reductions by the end of the decade, it added.

IEA Executive Director Fatih Birol said, “Keeping alive the goal of limiting global warming to 1.5°C requires the world to come together quickly. The good news is we know what we need to do – and how to do it.” He underscores the imperative of international cooperation, urging governments to prioritise climate action over geopolitics due to the magnitude of the challenge.

The key driver of emissions reduction in the roadmap is a significant scaling up of clean energy capacity, leading to a 25 percent decrease in fossil fuel demand by 2030 compared to the peak levels observed in 2022, the report added.

By 2050, fossil fuel demand is expected to plummet by 80 percent. Consequently, the roadmap envisions no need for new long-lead-time upstream oil and gas projects, new coal mines, mine extensions, or unabated coal plants. However, continued investment in some existing oil and gas assets and approved projects remains essential to ensure a smooth transition.

The report also says that to reach the set target by 2050, most countries will have to advance their targeted net-zero dates. With the differential timelines proposed in the report, the developed economies are leading the way in achieving net zero in 2045, followed by China in 2050 and the other emerging markets and developing economies after 2050.

This comes a week after UK Prime Minister Rishi Sunak announced a shift in strategy towards achieving the country’s net zero climate action targets, including a delay of five years in imposing a proposed ban on petrol and diesel cars to 2035.

Meanwhile, India’s set target to be net zero by 2070, is further than most developed nations target but the country remains on track to achieve along with its 2030 target of achieving 500 GW of renewable energy capacity.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

UK PM Rishi Sunak delays petrol, diesel car ban in net zero reset

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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British Prime Minister Rishi Sunak on Wednesday laid out a shift in strategy towards achieving the country’s net zero climate action targets, including a delay of five years in imposing a proposed ban on petrol and diesel cars to 2035.

In a speech at Downing Street, the British Indian leader reiterated that there is no change to the UK’s commitment to reduce carbon emissions to hit its net zero target by 2050 but only a shift towards a more “pragmatic, proportionate and realistic path” to achieving that goal amid a cost-of-living crisis.

Net zero refers to global commitments that harmful greenhouse gas emissions must be balanced by carbon dioxide removals over a specified time period. “This country is proud to be a world leader in reaching net zero by 2050. But we simply won’t achieve it unless we change,” said Sunak.

“We’ll now have a more pragmatic, proportionate, and realistic approach that eases the burdens on families. All while doubling down on the new green industries of the future. In a democracy, that’s the only realistic path to net zero,” he said.

There has been a mixed reaction to his announcements, with environmental groups and even sections of his own Conservative Party questioning the delays. But Sunak stressed the modified approach was necessary to reduce the financial burden on already struggling families.

“There will be resistance — and we will meet it. Because I am determined to change our country and build a better future for our children. Nothing less is acceptable,” added Sunak.

Among the other measures announced include a delay on the ban on installing oil and LPG boilers, and new coal heating, for off-gas-grid homes to 2035, instead of phasing them out from 2026. An exemption to the phase out of fossil fuel boilers, including gas, in 2035, for a switch to low-carbon alternatives and scrapping policies to force landlords to upgrade the energy efficiency of their properties.

The UK’s commitment to reach net zero by 2050 was written into law in 2019. Downing Street reiterated the changes unveiled this week will not require the UK to change or abandon its upcoming emissions targets and that it will meet its international agreements, including the promises at the COP climate summits in Paris and Glasgow to limit global warming to 1.5 degrees Celsius.

The British government said the UK’s “over-delivery” on reducing emissions provides space to take this changed approach to reaching net zero. Sunak also confirmed that “worrying proposals” such as seven recycling bins and taxes on meat and flying will never happen on his watch.

“The Prime Minister has made clear that the plans to meet net zero will only succeed if public support is maintained or we risk losing the agenda altogether, unable to meet our goals. The UK will remain the country with the most ambitious, stringent de-carbonisation targets in the world even after these changes are made,” Downing Street claimed.

The Opposition, however, came down heavily against the proposals, with the Labour Party dubbing it an “act of weakness”.

“Delaying the phase out of petrol and diesel cars will add billions in costs to families and damage investor confidence in the UK, as we have seen from the furious business reaction today,” said Ed Miliband, Labour’s Shadow Energy Security and Net Zero Secretary.

Lib Dem leader Ed Davey said: “This is a Prime Minister who simply doesn’t understand and cannot grasp for Britain the opportunities for jobs and our economy of driving forward with action on clean energy.”

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Explained: What is carbon, capture, utilisation, storage and can it help transition to net zero emissions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Carbon, capture, utilisation, storage (CCUS) is another alternative for achieving net zero emissions, but the technology is still in its pilot stage, said RK Singh, the Union minister of power and new and renewable energy on Tuesday.

Briefly explaining what CCUS is, Singh said, “For example, you use coal to produce electricity or coke to produce steal, you capture the carbon dioxide and other greenhouse gases that are emitted. And then you place it in some tunnel or mine and hope it does not leak back again,” he said, adding that the technology is there, but in its pilot stage.

What is CCUS?

To simplify it further, CCUS involves capturing carbon dioxide from large point sources like industrial or power generation facilities that utilise either biomass or fossil fuels as fuel. The gas can also be captured from the atmosphere directly. If the captured gas is not used at the site, it is compressed and then transported via ship, pipeline, truck or rail, to be utilised in various applications or inserted into deep geological formations which trap the gas for permanent storage. These can also include depleted oil as well as gas reservoirs or even saline aquifers.

Latest developments on CCUS

According to the most recent International Energy Agency (IEA) report (September 2022), globally there are about 35 commercial facilities in operation that apply CCUS to industrial processes, power generation and fuel transformation, to capture around 45 metric tonnes of CO2 annually.

The IEA report stated that the CCUS momentum showed growth since 2018, but has been slow. It added that project developers announced their aim to develop more than 200 new capture facilities to be operational by 2030, which would capture over 220 metric tonne of carbon dioxide every year. However, only about 10 such commercial projects that were under development took the final investment decision (FID) as of June last year.

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Role in net zero transition

The report stated that higher carbon dioxide capture rates would be essential for the method to play its role in the net zero transition. McKinsey in its recent blog too said that creating CCUS hubs could accelerate development. It said that strategically building CCUS hubs close to clusters of large emitters could help lower costs as well as accelerate scale-up.

NITI Aayog in its November 2022 ‘CCUS policy framework and its deployment mechanism in India’ report said  CCUS projects would need an upfront investment of $100-150 billion for around 750 metric tonnes per annum of CO2 capture, storage and utilisation.

It stated that these investments would have a positive impact on the country’s GDP, which is estimated at around $100 billion to $150 billion in the next 30 years, based on the envisaged indigenization and improvement of CCUS technology.

Value chain

The NITI Aayog report states that to deploy carbon capture at a large scale, it is necessary to look beyond the technology aspect and look at the value chain, which is divided into three components:

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• Capturing CO2 via industrial gas streams or fuel combustion, compression, dehydration as well as purifying it to the required specifications.
• Transporting CO2 to the carbon dioxide sink
• Disposition of the gas, either via utilisation in applications like enhanced oil recovery, production of urea, cured concrete, green methanol, or isolating it in permanent geological storages

Focus on dedicated storage

Carbon dioxide can bring a few climate benefits, however the market size of these applications is relatively limited, which is why the primary focus is dedicated storage of CCUS deployment, the IEA report stated.

It added that when it comes to the net zero scenarios, more than 95 percent of the gas captured by 2030 is to be stored geologically and less than 5 percent of it is supposed to be used.

While CCUS is just one aspect of achieving net zero emissions, countries across the world, including India are also focusing on other measures to transition to green energy.  Singh in his address also highlighted another important point: “You won’t get to net zero until you have round-the-clock renewable energy. And for that you need storage.” While he was talking about other storage solutions for other sources of renewable energy, this also applies to the CCUS technology as well.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mobile World Congress 2023: Mobile operators make strides towards net zero, GSMA report reveals

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The annual Mobile Net Zero report, published by the GSMA on Tuesday, showed that the mobile industry is making significant progress towards net zero, with 24 percent of its global electricity now sourced from renewable sources, up from 14 percent in 2020 and 18 percent in 2021.

The report tracks the industry’s progress towards net zero and highlights the steps taken by mobile operators to improve energy efficiency and reduce carbon emissions, including investing in 5G technology, retiring legacy networks, and transitioning to electric vehicle fleets.

The report also notes the industry’s commitment to making its supply chain more sustainable, with major handset and equipment suppliers, such as Apple and Samsung, working towards using more recycled content and renewable energy in their manufacturing processes, extending device lifetimes, and supporting repair and recycling initiatives.

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To date, 62 operators, representing 61 percent of industry revenue and 46 percent of industry connections, have committed to science-based targets aimed at reducing their direct and indirect carbon emissions by 2030, an increase of 12 operators since 2022.

These targets require operators to transition to 100 percent renewable electricity, move away from diesel generators, electrify their vehicle fleets, and engage with suppliers. A significant proportion of operators have also committed to achieving net zero emissions by 2050 or earlier, accounting for 39 percent of mobile connections and 43 percent of global revenue.

“The environmental and financial benefits of climate action are clear to the mobile industry,” said John Giusti, Chief Regulatory Officer for the GSMA. “Mobile operators are staking a leadership position on climate, and with nearly 25 percent of all electricity used by our sector now coming from renewable sources, moving beyond target setting to demonstrable action.”

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The report highlights regional variations in the adoption of renewable electricity, with European operators purchasing the most renewable energy, at over 70 percent on average, and North American operators achieving around half that, although they are expected to close the gap with new energy purchasing contracts.

The mobile industry is also improving its climate reporting, with 67 operators, accounting for 79 percent of mobile revenue and 66 percent of global connections, disclosing to the CDP in 2022, an increase of seven operators on the previous year. A record 36 operators received an “A” score for their disclosures, up from 22 the previous year.

“The digital transition is a powerful enabler of a more sustainable economy,” Giusti said. “Achieving it will require stronger collaboration between governments and the private sector on all fronts. It is important to recognise the impact that government policies and regulations can have on operators’ ability to invest in and deploy more energy-efficient networks.”

Catch the live updates of the Mobile World Congress 2023 here.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow