ReportWire

Tag: Metals and minerals industry

  • Norway defends deep-sea mining, says it may help to break China and Russia’s rare earths stronghold

    Norway defends deep-sea mining, says it may help to break China and Russia’s rare earths stronghold

    [ad_1]

    ROTTERDAM, SOUTH HOLLAND, NETHERLANDS – 2022/02/08: The deep-sea creatures on board the Luciana and the mining vessel Hidden Gem seen in the background, during the demonstration.
    Ocean Rebellions protest The Deep Sea Says No Why the deep sea? The deep seabed is largely unexplored, many areas have unique marine life (an estimated 10-million life forms and most are undiscovered) and many areas are important to the survival of all ocean life. Deep Sea Mining in areas like the Clarion Clipperton Fracture Zone (CCFZ) (Pacific Ocean) will destroy the deep seabed and the life that depends on it, destroying corals and sponges that have taken thousands of years to grow. (Photo by Charles M. Vella/SOPA Images/LightRocket via Getty Images)

    Sopa Images | Lightrocket | Getty Images

    Norway says its controversial decision to approve deep-sea mining is a necessary step into the unknown that could help to break China and Russia’s rare earths dominance.

    In a vote earlier this month that attracted cross-party support, Norway’s parliament voted 80-20 to approve a government proposal to open a vast ocean area for commercial-scale deep-sea mining.

    It makes the northern European country the first in the world to move forward with the process of extracting minerals from the seabed.

    Norway’s government said the practice could be one way to help facilitate the global transition away from fossil fuels, adding that every country should be exploring ways to sustainably collect metals and minerals at their disposal.

    Scientists, however, have warned that the full environmental impacts of deep-sea mining are hard to predict, while environmental campaign groups have slammed the approval of what they call an “extremely destructive” process that sends a “terrible signal” to the rest of the world.

    The goal of any exploration activities should be to better understand the scale of the environmental threats deep-sea mining poses — not to justify a practice we know will have vast negative impacts on marine life and the planet’s health.

    Anne-Sophie Roux

    Deep-sea mining Europe lead at the Sustainable Ocean Alliance

    Essential metals such as cobalt, nickel, copper and manganese can be found in potato-sized nodules on the seafloor. The end-uses of these metals — along with other strategic minerals and rare earth elements — are wide-ranging and include electric vehicle batteries, wind turbines and solar panels.

    As a result, demand is growing fast. The IEA expects this trend to continue as the clean energy transition gains pace, noting that demand for cobalt and nickel jumped 70% and 40%, respectively, between 2017 and 2022.

    “Today, we are almost dependent on Russia and China and we have to diversify the global supply chain production of minerals around the world,” Norwegian Energy Minister Terje Aasland told CNBC via videoconference.

    “We have been looking into the seabed minerals opportunity for a long time. We have a really reliable tradition on how we use the resources in the Norwegian continental shelf. We do it sustainably and we do it step by step.”

    As part of the rapid uptick in demand for critical minerals, the IEA has warned that today’s supply falls short of what is needed to transform the energy sector. That’s because there is a relatively high geographical concentration of the production of many energy transition elements.

    Most rare earth reserves are located in China, for example, while Vietnam, Brazil and Russia are also major rare earths countries based on reserve volume.

    Knowledge gaps

    Norway’s parliamentary decision paves the way for companies to apply to mine in its national waters near the Svalbard archipelago. The area, which is part of Norway’s extended seabed shelf, is estimated to be larger than the U.K. at roughly 280,000 square kilometers (108,108 square miles).

    Norway’s government does not intend to immediately start drilling for minerals. Instead, companies will need to submit proposals for licenses that will be voted on a case-by-case basis in parliament.

    Aasland said the first commercial licenses for exploring the seabed could come “maybe next year” but a license to extract these minerals would likely not happen this decade.

    (L-R) Norwegian member of Parliament Arild Hermstad, French climate activists Camille Etienne and Anne-Sophie Roux, and French actor Lucas Bravo attend a demonstration against seabed mining outside the Norwegian Parliament building in Oslo, Norway on January 9, 2024.

    Javad Parsa | Afp | Getty Images

    The approval of deep-sea mining puts Norway at odds with both the U.K. and the European Commission, the EU’s executive arm, which have pushed for a temporary ban on environmental concerns.

    In response to the criticism, Norway’s Aasland said the vote outcome would help lawmakers better understand whether hunting for minerals on the seafloor can be done in a sustainable way.

    “One of the key issues in the debate is we don’t have enough knowledge to decide if we can go to extract these minerals — and I totally agree,” Aasland said.

    “We have to collect more information before we can take a decision about extracting these minerals. That is what this opening is all about. It is not the same as approving extraction.”

    ‘A nail in the coffin’ of Norway’s climate credentials

    Anne-Sophie Roux, deep-sea mining Europe lead at the Sustainable Ocean Alliance, said Norway’s decision to greenlight commercial deep-sea mining is “irresponsible” and “puts a nail in the coffin” of the country’s proclaimed role as a climate leader.

    “The goal of any exploration activities should be to better understand the scale of the environmental threats deep-sea mining poses — not to justify a practice we know will have vast negative impacts on marine life and the planet’s health,” Roux told CNBC via email.

    'Huge knowledge gaps must be filled' before deep-sea mining, says Norwegian deputy foreign minister

    Marine ecosystems are not well understood. Campaigners fear that exploration and exploitation activities in the deep sea could permanently alter a home that is unique to known — and many as yet unknown — species.

    “The argument put forward by the Norwegian government — and the deep-sea mining industry — that ‘deep-sea mining can be done in a sustainable way’ goes against the large consensus of scientific literature,” Roux said.

    “There is no way to sustainably mine the deep sea in our current day and age, as it would inevitably lead to ecosystem destruction, species extinction, various sources of pollution and disruption of the climate ecosystemic services of the ocean.”

    A slide show of texts are projected onto the side of the Hidden Gem during the demonstration.

    Charles M. Vella | Lightrocket | Getty Images

    Maria Varteressian, deputy foreign minister of Norway, said the Nordic country takes its reputation as a sustainable ocean nation “seriously,” however, and this is the case when considering whether seabed minerals could play a role in the energy transition.

    “No exploitation activity has started. The main reason to that as you have already said is the huge knowledge gaps which must be filled prior to any activity even being considered. That is important,” Varteressian told CNBC’s “Squawk Box Europe” on Jan. 24.

    “Regardless of the views on mining activities onshore and offshore, minerals will be a critical component in the new energy systems so the main question is not whether we need the minerals or not, the important question is can we produce them in a sustainable way?”

    [ad_2]

    Source link

  • Why substituting cryptocurrency for gold exposure may be a costly mistake

    Why substituting cryptocurrency for gold exposure may be a costly mistake

    [ad_1]

    Viewing cryptocurrency as “digital gold” may be a mistake.

    State Street Global Advisors’ George Milling-Stanley, whose firm runs the world’s largest gold exchange-traded fund, believes cryptocurrency is no substitute for the real thing due its vulnerability to big losses.

    “Volatility does not back up any claims for crypto to be a long-term strategic asset as a competitor to gold,” the firm’s chief gold strategist told CNBC’s “ETF Edge” earlier this week.

    Milling-Stanley’s firm is behind SPDR Gold Shares, the world’s largest physically backed gold ETF. It has a total asset value of more than $57 billion as of last week, according to the company’s website. The ETF is up 7% year to date as of Friday’s market close.

    Milling-Stanley believes gold’s 6,000-year history as a monetary asset serves as a significant sample basis to understand the benefits of investing in gold.

    “Gold is a hedge against inflation. Gold’s a hedge against potential weakness in the equity market. Gold’s a hedge against potential weakness in the dollar,” he noted. “To me, historically, the promise of gold for investors has … overtime [helped] to enhance the returns of a properly balanced portfolio.”

    The precious metal is having trouble this year staying above the $2,000 an ounce mark. But Milling-Stanley believes the economic backdrop bodes well for gold — recession or not.

    “It’s pretty clear that we’re liable to be in a period of slow growth. … Historically, gold has always done well during periods of slower growth,” Milling-Stanley said.

    Milling-Stanley also believes the relaxation of Covid-19 restrictions in China should spark more demand for gold. It’s known as the world’s largest consumer of gold jewelry behind India, according to the World Gold Council.

    “It’s not just China and India. It’s Vietnam, it’s Indonesia, it’s Thailand and Korea. It’s a whole raft of Asian countries that are really the main drivers of gold jewelry demand,” Milling-Stanley said.

    Gold settled at $1,960.47 an ounce Friday. The commodity is up more than 7% so far this year.

    [ad_2]

    Source link

  • Elon Musk discussed a possible Mongolia expansion with the country’s prime minister

    Elon Musk discussed a possible Mongolia expansion with the country’s prime minister

    [ad_1]

    Tesla CEO Elon Musk.

    Ludovic Marin | Afp | Getty Images

    Mongolia’s prime minister Luvsannamsrai Oyun-Erdene and Tesla CEO Elon Musk on Monday discussed possible expansion and investments into the Asian country over a virtual meeting.

    “They discussed the possibility of welcoming Tesla to Mongolia for its electric vehicles battery factory, leveraging the country’s wide availability of copper and rare earth elements, which are essential components of electric cars’ batteries,” according to a statement issued on behalf of the Mongolian government.

    The East Asian country is rich in minerals and boasts large deposits of copper, gold and coal.

    “The Mongolian Government is committed to cooperating with international organisations to help boost the development of new technologies and raise investment in the country,” the statement said.

    A statement from the cabinet secretariat of Mongolia’s government added that the country’s prime minister emphasized his support for the use of electric cars and urged Mongolian citizens to use such vehicles.

    Musk and Oyun-Erdene also spoke about bringing Starlink — a satellite communications terminals and services provider operated by the Musk-founded SpaceX — to Mongolia. Starlink was registered as a company in Mongolia in 2022 and is expected to launch regionally this year.

    Musk’s meeting with the Mongolian leader comes after the tech giant last week met with Chinese vice premier Ding Xuexiang and other top officials in China, as Beijing looks to portray a friendly business environment for foreign companies amid tensions with the U.S.

    The Tesla CEO complimented China’s technological advances and visited the Tesla gigafactory in Shanghai.

    [ad_2]

    Source link

  • Platinum surged to its best quarter since 2008

    Platinum surged to its best quarter since 2008

    [ad_1]

    The price of platinum has soared as high demand meets low supply.

    Tomohiro Ohsumi | Bloomberg | Getty Images

    Platinum posted its best quarter since 2008, as China has scooped up vast stocks of the precious metal.

    Platinum rose almost 2% on Friday to $1,086 per troy ounce, up more than 26% from the start of the quarter.

    That move marks the biggest quarterly increase since the first quarter of 2008, when platinum gained a staggering 33.96%.

    Platinum is used in the defense and aerospace industries, especially in jet and rocket engines. It also is used in processes for making detergents, fertilizers, plastics and explosives.

    China has imported excessive amounts of platinum since 2019, according to the World Platinum Investment Council, which has left a limited above-ground supply for the rest of the world.

    “This, in combination with higher prices likely being needed to release Chinese inventories to the domestic market, could have a significant bearing” on the price of platinum, according to the Council’s Platinum Perspectives report in December.

    The Council anticipates a platinum deficit in 2023, with demand growing by 19% while supply increasing by just 2%. Despite international economic turbulence, with many countries already in, or expected to tip into, recession, industrial demand for platinum will be up 10% compared to 2022, which exceeds the 10-year average, according to a press release by the WPIC.

    Demand for platinum in the automotive industry will also continue to grow next year, while jewelry-based demand for platinum is forecasted to remain constant throughout 2023.

    Platinum gained more than 13% in 2022, outpacing other precious metals including gold, silver and palladium.

    A knock-on effect

    Stocks linked to platinum are also posting strong quarterly gains, including Impala Platinum, Anglo American Platinum and Sibanye Stillwater.

    The platinum market posted a deficit in 2020 after the onset of the coronavirus pandemic brought industry to a standstill. The market saw a period of recovery in February 2021 when the metal touched a six-year high as industrial demand improved and investors weighed up platinum’s importance in the global transition to clean energy.

    —CNBC’s Alex Harring and Gina Francolla contributed to this report.

    [ad_2]

    Source link

  • EPA proposes restrictions to block proposed Alaska mine

    EPA proposes restrictions to block proposed Alaska mine

    [ad_1]

    ANCHORAGE, Alaska — The U.S. Environmental Protection Agency on Thursday proposed restrictions that would block plans for a copper and gold mine in Alaska’s Bristol Bay region that is home to the world’s largest sockeye salmon run.

    A statement from the regional EPA office said discharges of dredged or fill material into the waters of the U.S. within the proposed Pebble Mine footprint in southwest Alaska would “result in unacceptable adverse effects on salmon fishery areas.”

    “This action would help protect salmon fishery areas that support world-class commercial and recreational fisheries, and that have sustained Alaska Native communities for thousands of years, supporting a subsistence-based way of life for one of the last intact wild salmon-based cultures in the world,” regional EPA administrator Casey Sixkiller said in a statement.

    The decision will now be forwarded to the EPA Office of Water for the final determination. That office has 60 days to affirm, modify or rescind the recommendation.

    The EPA regional office also proposed to restrict the discharge of dredged or fill material with any future proposal for Pebble Mine that would be similar in size or bigger than what is currently proposed.

    Mine developer Pebble Limited Partnership, owned by Canada-based Northern Dynasty Minerals Ltd., called the EPA’s decision a preemptive veto. It described the decision as political and without legal, environmental or technical merit.

    “We still firmly believe that the proposed determination should have been withdrawn as it is based on indefensible legal and non-scientific assumptions,” Pebble CEO John Shively said in a statement.

    “Congress did not give the EPA broad authority to act as it has in the Pebble case. This is clearly a massive regulatory overreach by the EPA and well outside what Congress intended for the agency when it passed the Clean Water Act,” Shively said.

    The debate over the proposed mine in an area of southwest Alaska known for its salmon runs has spanned several presidential administrations. The EPA has said the Bristol Bay region also contains significant mineral resources.

    “After twenty years of Pebble hanging over our heads, the Biden Administration has the opportunity to follow through on its commitments by finalizing comprehensive, durable protections for our region as soon as possible,” Alannah Hurley, executive director for the United Tribes of Bristol Bay, said in a statement.

    [ad_2]

    Source link

  • US nuclear waste repository begins filling new disposal area

    US nuclear waste repository begins filling new disposal area

    [ad_1]

    ALBUQUERQUE, N.M. — Workers at the nation’s only underground nuclear waste repository have started using a newly mined disposal area at the underground facility in southern New Mexico.

    Officials at the Waste Isolation Pilot Plant made the announcement this week, saying the first containers of waste to be entombed in the new area came from Oak Ridge National Laboratory in Tennessee — one of the many labs and government sites across the country that package up waste and ship it to WIPP.

    Known as Panel 8, the new area consists of seven separate rooms for placing special boxes and barrels packed with lab coats, rubber gloves, tools and debris contaminated with plutonium and other radioactive elements.

    Each room measures 33 feet (10 meters) wide, 16 feet (4.9 meters) high and runs the length of a football field minus the end zones.

    Carved out of an ancient salt formation about half a mile (0.8 kilometers) deep, the subterranean landfill located outside of Carlsbad received its first shipment in 1999. The idea is that the shifting salt will eventually entomb the radioactive waste left from decades of bomb-making and nuclear weapons research.

    In 2014, a fire and separate radiation release forced a nearly three-year closure of the repository and a costly overhaul of the policies and procedures that govern WIPP and the nation’s multibillion-dollar cleanup program for Cold War-era waste.

    Operations had to be reduced after the repository reopened because areas of the facility were contaminated and airflow needed for mining and disposal operations was limited. Now, a multimillion-dollar project is underway to install a new ventilation system, and state regulators are considering a permit change that some critics have said could lead to expanded operations.

    The state Environment Department’s Hazardous Waste Bureau issued a plan this month aimed at ensuring the public has opportunities to comment on modifications or permit renewal applications.

    Sean Dunagan, president and project manager of Nuclear Waste Partnership, the contractor that manages the repository, said in a statement that operations already have become more efficient with the new panel.

    Creating a panel requires mining nearly 160,000 tons of salt, and it takes about 2 1/2 years to fill it with waste. For example, Panel 7 is filled with 20,056 containers, with most of them being 55-gallon (208-litre) drums.

    [ad_2]

    Source link

  • UK’s first large-scale lithium refinery chooses location as race for ‘white gold’ intensifies

    UK’s first large-scale lithium refinery chooses location as race for ‘white gold’ intensifies

    [ad_1]

    A lithium-ion battery photographed at a Volkswagen facility in Germany. Lithium-ion batteries are crucial components in electric vehicles.

    Jan Woitas | Picture Alliance | Getty Images

    LONDON — A facility described as the U.K.’s “first large-scale lithium refinery” will be located in the north of England, with those behind the project hoping its output will hit roughly 50,000 metric tons each year once up and running.

    On Monday, a statement released by Green Lithium on the website of the London Stock Exchange said construction of the £600 million (around $687 million) project was expected to last three years, with commissioning slated for 2025.

    The refinery will be based at Teesport, a major port on Teesside. Green Lithium said its product would “go into the supply chain for lithium-ion batteries, energy storage, grid stabilisation and EV batteries.”

    Alongside its use in cell phones, computers, tablets and a host of other gadgets synonymous with modern life, lithium — which some have dubbed “white gold” — is crucial to the batteries that power electric vehicles.

    The U.K. wants to stop the sale of new diesel and gasoline cars and vans by 2030. It will require, from 2035, all new cars and vans to have zero tailpipe emissions. The European Union, which the U.K. left on Jan. 31, 2020, is pursuing similar targets.

    Read more about electric vehicles from CNBC Pro

    With demand for lithium rising, European economies are attempting to shore up their own supplies and reduce dependency on other parts of the world.

    In a translation of her State of the Union speech last month, European Commission President Ursula von der Leyen said “lithium and rare earths will soon be more important than oil and gas.”

    As well as addressing security of supply, von der Leyen, who switched between several languages during her speech, also stressed the importance of processing.

    “Today, China controls the global processing industry,” she said. “Almost 90% … of rare earth[s] and 60% of lithium are processed in China.”

    “So we will identify strategic projects all along the supply chain, from extracting to refining, from processing to recycling,” she added. “And we will build up strategic reserves where supply is at risk.”

    Read more about energy from CNBC Pro

    Back in the U.K., Business Secretary Grant Shapps said Green Lithium’s refinery would “deliver more than 1,000 jobs during its construction and 250 long-term, high-skill jobs for local people when in operation.”

    “It is also allowing us to move quickly to secure our supply chains of critical minerals, as we know that geopolitical threats and global events beyond our control can severely impact the supply of key components that could delay the rollout of electric vehicles in the UK,” he added.

    The news about Green Lithium comes after Britishvolt, another firm looking to establish a foothold in the electric vehicle sector, said it had secured short-term funding that would enable it to stave off administration for the time being. The company said its employees had also agreed to a pay cut for November.

    [ad_2]

    Source link

  • Death toll rises to 28 in Turkey coal mine explosion

    Death toll rises to 28 in Turkey coal mine explosion

    [ad_1]

    AMASRA, Turkey — The death toll from a coal mine explosion in northern Turkey rose to at least 28 people and rescue efforts continued as a fire burned in the mine, officials said Saturday.

    There were 110 miners working in the shaft when the explosion occurred Friday evening at the state-owned TTK Amasra Muessese Mudurlugu mine in the town of Amasra, in the Black Sea coastal province of Bartin.

    Energy Minister Fatih Durmaz said rescue efforts continued for 15 people with a majority of them in the mine’s gallery where a fire still burned.

    “It’s not a huge fire, but to get there safely, the fire and carbon monoxide gas must be eliminated,” he told journalists at the site.

    Four or five other miners were trapped in cave-ins, Durmaz added. The minister earlier said that preliminary assessments indicated that the explosion was likely caused by firedamp, which is a reference to flammable gases found in coal mines.

    Health Minister Fahrettin Koca tweeted that 28 miners were dead and 11 rescued miners were hospitalized in Bartin and Istanbul. Interior Minister Suleyman Soylu said 58 people had been rescued alive.

    Ambulances were on standby at the site. Rescue teams were dispatched to the area, including from neighboring provinces, Turkey’s disaster management agency, AFAD, said.

    Turkey’s president was expected to visit Amasra on Saturday.

    In Turkey’s worst mine disaster, a total of 301 people died in 2014 in a fire inside a coal mine in the town of Soma, in western Turkey.

    [ad_2]

    Source link

  • Official: 14 dead, 28 hurt after blast in Turkish coal mine

    Official: 14 dead, 28 hurt after blast in Turkish coal mine

    [ad_1]

    Miners carry the body of a victim in Amasra, in the Black Sea coastal province of Bartin, Turkey, Friday, Oct. 14, 2022. An official says an explosion inside a coal mine in northern Turkey has trapped dozens of miners. At least 14 have come out alive. The cause of Friday’s blast in the town of Amasra in the Black Sea coastal province of Bartin was not immediately known. (Nilay Meryem Comlek/Depo Photos via AP)

    [ad_2]

    Source link

  • The first crop of space mining companies didn’t work out, but a new generation is trying again

    The first crop of space mining companies didn’t work out, but a new generation is trying again

    [ad_1]

    Just a couple of years ago, it seemed that space mining was inevitable. Analysts, tech visionaries and even renowned astrophysicist Neil deGrasse Tyson predicted that space mining was going to be big business.

    Space mining companies like Planetary Resources and Deep Space Industries, backed by the likes of Google‘s Larry Page and Eric Schmidt, cropped up to take advantage of the predicted payoff.

    Fast forward to 2022, and both Planetary Resources and Deep Space Industries have been acquired by companies that have nothing to do with space mining. Humanity has yet to commercially mine even a single asteroid. So what’s taking so long?

    Space mining is a long-term undertaking and one that investors do not necessarily have the patience to support. 

    “If we had to develop a full-scale asteroid mining vehicle today, we would need a few hundred million dollars to do that using commercial processes. It would be difficult to convince the investment community that that’s the right thing to do,” says Joel Sercel, president and CEO of TransAstra Corporation.

    “In today’s economics and in the economics of the near future, the next few years, it makes no sense to go after precious metals in asteroids. And the reason is the cost of getting to and from the asteroids is so high that it vastly outstrips the value of anything that you’d harness from the asteroids,” Sercel says.

    This has not dissuaded Sercel from trying to mine the cosmos. TransAstra will initially focus on mining asteroids for water to make rocket propellant, but would like to eventually mine “everything on the periodic table.” But Sercel says such a mission is still a ways off.

    “In terms of the timeline for mining asteroids, for us, the biggest issue is funding. So it depends on how fast we can scale the business into these other ventures and then get practical engineering experience operating systems that have all the components of an asteroid mining system. But we could be launching an asteroid mission in the 5 to 7-year time frame.”

    Sercel hopes these other ventures keep it afloat until it develops its asteroid mining business. The idea is to use the tech that will eventually be incorporated into TransAstra’s astroid mining missions to satisfy already existing market needs, such as using space tugs to deliver satellites to their exact orbits and using satellites to aid in traffic management as space gets increasingly more crowded.

    AstroForge is another company that believes space mining will become a reality. Founded in 2022 by a former SpaceX engineer and a former Virgin Galactic engineer, AstroForge still believes there is money to be made in mining asteroids for precious metals.

    “On Earth we have a limited amount of rare earth elements, specifically the platinum group metals. These are industrial metals that are used in everyday things your cell phone, cancer, drugs, catalytic converters, and we’re running out of them. And the only way to access more of these is to go off world,” says AstroForge Co-Founder and CEO Matt Gialich.

    AstroForge plans to mine and refine these metals in space and then bring them back to earth to sell. To keep costs down, AstroForge will attach its refining payload to off-the shelf satellites and launch those satellites on SpaceX rockets.

    “There’s quite a few companies that make what is referred to as a satellite bus. This is what you would typically think of as a satellite, the kind of box with solar panels on it, a propulsion system being connected to it. So for us, we didn’t want to reinvent the wheel there,” Gialich says. “The previous people before us, Planetary Resources and DSI [Deep Space Industries], they had to buy entire vehicles. They had to build much, much larger and much more expensive satellites, which required a huge injection of capital. And I think that was the ultimate downfall of both of those companies.”

    The biggest challenge, AstroForge says, is deciding which asteroids to target for mining. Prior to conducting their own missions, all early-stage mining companies have to go on is existing observation data from researchers and a hope that the asteroids they have selected contain the minerals they seek. 

    “The technology piece you can control, the operations pieces you can control, but you can’t control what the asteroid is until you get there,” says Jose Acain, AstroForge Co-Founder and CTO.

    To find out more about the challenges facing space mining companies and their plans to make space mining a real business watch the video.

    [ad_2]

    Source link

  • What the war in Ukraine means for Asia’s climate goals

    What the war in Ukraine means for Asia’s climate goals

    [ad_1]

    NEW DELHI, India — The queues outside petrol pumps in Sri Lanka have lessened, but not the anxiety.

    Asanka Sampath, a 43-year-old factory clerk, is forever vigilant. He checks his phone for messages, walks past the pump, and browses social media to see if fuel has arrived. Delays could mean being left stranded for days.

    “I am really fed up with this,” he said.

    His frustrations echo that of the 22-million inhabitants of the island nation, facing its worst ever economic crisis because of heavy debts, lost tourism revenue during the pandemic, and surging costs. The consequent political turmoil culminated with the formation of a new government, but recovery has been complicated by Russia’s invasion of Ukraine, and the consequent upending of global energy markets.

    Europe’s need for gas means that they’re competing with Asian countries, driving up prices of fossil fuels and resulting in what Tim Buckley, the director of the thinktank Climate Energy Finance, refers to as “hyper-inflation … and I use that word as an understatement.”

    Most Asian countries are prioritizing energy security, sometimes over their climate goals. For rich countries like South Korea or Japan, this means forays into nuclear energy. For the enormous energy needs of China and India it implies relying on dirty coal power in the short term. But for developing countries with already-strained finances, the war is having a disproportionate impact, said Kanika Chawla, of the United Nations’ sustainable energy unit.

    How Asian countries choose to go ahead would have cascading consequences: They could either double down on clean energy or decide to not phase out fossil fuels immediately.

    “We are at a really important crossroads,” said Chawla.

    SRI LANKA: “SLOW GRIND”

    Sri Lanka is an extreme example of the predicament facing poor nations. Enormous debts prevent it from buying energy on credit, forcing it to ration fuel for key sectors with shortages anticipated for the next year.

    Sri Lanka set itself a target of getting 70% of all its energy from renewable energy by 2030 and aims to reach net zero — balancing the amount of greenhouse gas they emit with how much they take out of the atmosphere — by 2050.

    Its twin needs of securing energy while reducing costs means it has “no other option” than to wean itself off fossil fuels, said Aruna Kulatunga, who authored a government report for Sri Lanka’s clean energy goals. But others, like Murtaza Jafferjee, director of the think tank Advocata Institute say these targets are more “aspirational than realistic” because the current electrical grid can’t handle renewable energy.

    “It will be a slow grind,” said Jafferjee.

    Grids that run on renewable energy need to be nimbler because, unlike fossil fuels, energy from wind or the sun fluctuates, potentially stressing transmission grids.

    The economic crisis has decreased demand for energy in Sri Lanka. So while there are still power cuts, the country’s existing sources — coal and oil-fired plants, hydropower, and some solar — are coping.

    CHINA, INDIA: HOME-GROWN ENERGY

    How these two nations meet this demand will have global ramifications.

    And the answer, at least in the short-term, appears to be a reliance on dirty-coal power — a key source of heat-trapping carbon dioxide emissions.

    China, currently the top emitter of greenhouse gases in the world, aims to reach net zero by 2060, requiring significant slashing of emissions.

    But since the war, China has not only imported more fossil fuels from Russia but also boosted its own coal output. The war, combined with a severe drought and a domestic energy crisis, means the country is prioritizing keeping the lights on over cutting dirty fuel sources.

    India aims to reach net zero a decade later than China and is third on the list of current global emitters, although their historical emissions are very low. No other country will see a bigger increase in energy demand than India in the coming years, and it is estimated that the nation will need $223 billion to meet its 2030 clean energy targets. Like China, India’s looking to ramp up coal production to reduce dependence on expensive imports and is still in the market for Russian oil despite calls for sanctions.

    But the size of future demand also means that neither country has a choice but to also boost their clean energy.

    China is leading the way on renewable energy and moving away from fossil fuel dependence, said Buckley, who tracks the country’s energy policy.

    “It might be because they are paranoid about climate change or because they want to absolutely dominate industries of the future,” said Buckley. “At the end of the day, the reason doesn’t really matter.”

    India is also investing heavily in renewable energy and has committed to producing 50% of its power from clean energy sources by 2030.

    “The invasion has made India rethink its energy security concerns,” said Swati D’Souza, of the Institute for Energy Economics and Financial Analysis.

    More domestic production doesn’t mean that the two countries are burning more coal, but instead substituting expensive imported coal with cheap homegrown energy, said Christoph Bertram at the Potsdam Institute for Climate Impact Research. What was “crucial” for global climate goals was where future investments were directed.

    “The flipside of investing into coal means you invest less into renewables,” he said.

    JAPAN, SOUTH KOREA: THE NUCLEAR OPTION

    Both Japan and South Korea, two of Asia’s most developed countries, are pushing for nuclear energy after the Russian invasion of Ukraine.

    Sanctions against Russian coal and gas imports resulted in Japan looking for alternative energy sources despite anti-nuclear sentiments dating back to the 2011 Fukushima disaster. An earlier-than-expected summer resulted in power shortages, and the government announced plans to speed up regulatory safety checks to get more reactors running.

    Japan aims to limit nuclear energy to less than a quarter of its energy mix, a goal seen as overly optimistic, but the recent push indicates that nuclear may play a larger role in the country.

    Neighboring South Korea hasn’t seen short-term impacts on energy supplies since it gets gas from countries like Qatar and Australia and its oil from the Middle East. But there may be an indirect hit from European efforts to secure energy from those same sources, driving up prices.

    Like Japan, South Korea’s new government has promoted nuclear-generated electricity and has indicated reluctance to sharply reduce the country’s coal and gas dependence since it wants to boost the economy.

    “If this war continues … we will obviously face a question on what should be done about the rising costs,” said Ahn Jaehun, from the Korean Federation for Environmental Movement.

    INDONESIA: DAMAGE CONTROL

    The war, and consequent rising gas prices, forced Indonesia to reduce ballooning subsidies aimed at keeping fuel prices and some power tariffs in check.

    But this was a very “hurried reform” and doesn’t address the challenge of weaning the world’s largest coal exporter off fossil fuels and reaching its 2060 net zero goal, said Anissa. R. Suharsono, of the International Institute for Sustainable Development.

    “We’re sliding back, into just firefighting,” she said.

    Coal exports have increased nearly 1.5 times between April and June, compared to 2021, in response to European demand and Indonesia has already produced over 80% of the total coal it produced last year, according to government data.

    The country needs to nearly triple its clean energy investment by 2030 to achieve net zero by 2060, according to the International Energy Agency, but Suharsono said it wasn’t clear how it was going to meet those targets.

    “There are currently no overarching regulations or a clear roadmap,” she said.

    ———

    Bharatha Mallawarachi in Colombo, Sri Lanka, Edna Tarigan in Jakarta, Mari Yamaguchi in Tokyo, Japan, Tong-hyung Kim and Hyung-jin Kim in Seoul, South Korea contributed to this report.

    ———

    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

    [ad_2]

    Source link

  • What the war in Ukraine means for Asia’s climate goals

    What the war in Ukraine means for Asia’s climate goals

    [ad_1]

    NEW DELHI, India — The queues outside petrol pumps in Sri Lanka have lessened, but not the anxiety.

    Asanka Sampath, a 43-year-old factory clerk, is forever vigilant. He checks his phone for messages, walks past the pump, and browses social media to see if fuel has arrived. Delays could mean being left stranded for days.

    “I am really fed up with this,” he said.

    His frustrations echo that of the 22-million inhabitants of the island nation, facing its worst ever economic crisis because of heavy debts, lost tourism revenue during the pandemic, and surging costs. The consequent political turmoil culminated with the formation of a new government, but recovery has been complicated by Russia’s invasion of Ukraine, and the consequent upending of global energy markets.

    Europe’s need for gas means that they’re competing with Asian countries, driving up prices of fossil fuels and resulting in what Tim Buckley, the director of the thinktank Climate Energy Finance, refers to as “hyper-inflation … and I use that word as an understatement.”

    Most Asian countries are prioritizing energy security, sometimes over their climate goals. For rich countries like South Korea or Japan, this means forays into nuclear energy. For the enormous energy needs of China and India it implies relying on dirty coal power in the short term. But for developing countries with already-strained finances, the war is having a disproportionate impact, said Kanika Chawla, of the United Nations’ sustainable energy unit.

    How Asian countries choose to go ahead would have cascading consequences: They could either double down on clean energy or decide to not phase out fossil fuels immediately.

    “We are at a really important crossroads,” said Chawla.

    SRI LANKA: “SLOW GRIND”

    Sri Lanka is an extreme example of the predicament facing poor nations. Enormous debts prevent it from buying energy on credit, forcing it to ration fuel for key sectors with shortages anticipated for the next year.

    Sri Lanka set itself a target of getting 70% of all its energy from renewable energy by 2030 and aims to reach net zero — balancing the amount of greenhouse gas they emit with how much they take out of the atmosphere — by 2050.

    Its twin needs of securing energy while reducing costs means it has “no other option” than to wean itself off fossil fuels, said Aruna Kulatunga, who authored a government report for Sri Lanka’s clean energy goals. But others, like Murtaza Jafferjee, director of the think tank Advocata Institute say these targets are more “aspirational than realistic” because the current electrical grid can’t handle renewable energy.

    “It will be a slow grind,” said Jafferjee.

    Grids that run on renewable energy need to be nimbler because, unlike fossil fuels, energy from wind or the sun fluctuates, potentially stressing transmission grids.

    The economic crisis has decreased demand for energy in Sri Lanka. So while there are still power cuts, the country’s existing sources — coal and oil-fired plants, hydropower, and some solar — are coping.

    CHINA, INDIA: HOME-GROWN ENERGY

    How these two nations meet this demand will have global ramifications.

    And the answer, at least in the short-term, appears to be a reliance on dirty-coal power — a key source of heat-trapping carbon dioxide emissions.

    China, currently the top emitter of greenhouse gases in the world, aims to reach net zero by 2060, requiring significant slashing of emissions.

    But since the war, China has not only imported more fossil fuels from Russia but also boosted its own coal output. The war, combined with a severe drought and a domestic energy crisis, means the country is prioritizing keeping the lights on over cutting dirty fuel sources.

    India aims to reach net zero a decade later than China and is third on the list of current global emitters, although their historical emissions are very low. No other country will see a bigger increase in energy demand than India in the coming years, and it is estimated that the nation will need $223 billion to meet its 2030 clean energy targets. Like China, India’s looking to ramp up coal production to reduce dependence on expensive imports and is still in the market for Russian oil despite calls for sanctions.

    But the size of future demand also means that neither country has a choice but to also boost their clean energy.

    China is leading the way on renewable energy and moving away from fossil fuel dependence, said Buckley, who tracks the country’s energy policy.

    “It might be because they are paranoid about climate change or because they want to absolutely dominate industries of the future,” said Buckley. “At the end of the day, the reason doesn’t really matter.”

    India is also investing heavily in renewable energy and has committed to producing 50% of its power from clean energy sources by 2030.

    “The invasion has made India rethink its energy security concerns,” said Swati D’Souza, of the Institute for Energy Economics and Financial Analysis.

    More domestic production doesn’t mean that the two countries are burning more coal, but instead substituting expensive imported coal with cheap homegrown energy, said Christoph Bertram at the Potsdam Institute for Climate Impact Research. What was “crucial” for global climate goals was where future investments were directed.

    “The flipside of investing into coal means you invest less into renewables,” he said.

    JAPAN, SOUTH KOREA: THE NUCLEAR OPTION

    Both Japan and South Korea, two of Asia’s most developed countries, are pushing for nuclear energy after the Russian invasion of Ukraine.

    Sanctions against Russian coal and gas imports resulted in Japan looking for alternative energy sources despite anti-nuclear sentiments dating back to the 2011 Fukushima disaster. An earlier-than-expected summer resulted in power shortages, and the government announced plans to speed up regulatory safety checks to get more reactors running.

    Japan aims to limit nuclear energy to less than a quarter of its energy mix, a goal seen as overly optimistic, but the recent push indicates that nuclear may play a larger role in the country.

    Neighboring South Korea hasn’t seen short-term impacts on energy supplies since it gets gas from countries like Qatar and Australia and its oil from the Middle East. But there may be an indirect hit from European efforts to secure energy from those same sources, driving up prices.

    Like Japan, South Korea’s new government has promoted nuclear-generated electricity and has indicated reluctance to sharply reduce the country’s coal and gas dependence since it wants to boost the economy.

    “If this war continues … we will obviously face a question on what should be done about the rising costs,” said Ahn Jaehun, from the Korean Federation for Environmental Movement.

    INDONESIA: DAMAGE CONTROL

    The war, and consequent rising gas prices, forced Indonesia to reduce ballooning subsidies aimed at keeping fuel prices and some power tariffs in check.

    But this was a very “hurried reform” and doesn’t address the challenge of weaning the world’s largest coal exporter off fossil fuels and reaching its 2060 net zero goal, said Anissa. R. Suharsono, of the International Institute for Sustainable Development.

    “We’re sliding back, into just firefighting,” she said.

    Coal exports have increased nearly 1.5 times between April and June, compared to 2021, in response to European demand and Indonesia has already produced over 80% of the total coal it produced last year, according to government data.

    The country needs to nearly triple its clean energy investment by 2030 to achieve net zero by 2060, according to the International Energy Agency, but Suharsono said it wasn’t clear how it was going to meet those targets.

    “There are currently no overarching regulations or a clear roadmap,” she said.

    ———

    Bharatha Mallawarachi in Colombo, Sri Lanka, Edna Tarigan in Jakarta, Mari Yamaguchi in Tokyo, Japan, Tong-hyung Kim and Hyung-jin Kim in Seoul, South Korea contributed to this report.

    ———

    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

    [ad_2]

    Source link