German Chancellor Angela Merkel’s planned climate action measures could cost at least 40 billion Euros over the next four years. Protecting the climate is a “challenge for humanity” and needs “a real feat of strength" which will “of course cost money,” she said prior to the government’s launch of a climate package on September 20.
Germany’s nearly simultaneous coal and nuclear exit is jeopardizing the country’s current high power supply security. Unless new flexible gas generators and renewable power sources get built in time, along with sufficient grid infrastructure, Germany is set to miss several key energy transition targets for the year 2020, McKinsey finds.
The Indonesian President Joko Widodo is proposing to remove a freeze on fuel and power prices, with the 2020 budget proposing to halve diesel subsidies and allot less for LPG and electricity. Having won the general election, Widodo uses his reaffirmed position to partly reverse his earlier ruling to keep energy prices flat throughout this and last year.
German Chancellor Angela Merkel has thrown her political weight behind the introduction of a price on CO2 emissions in the transport and buildings sector, although her climate cabinet will have the last say on September 20. “I advocate such a price,” Merkel said, stressing new paths had to be tried to reach the country’s climate targets.
Germany’s Council of Economic Experts have urged the government to put a price on carbon emissions in the transport and heating sector as a quick and easy fix to help meet the country’s climate goals. This unilateral move would work as an interim solution before integrating the sectors into the European Emission Trading System (EU-ETS).
Transforming India to a “gas-based economy” has been President Narendra Modi’s vision for years but the country can ill afford subsidizing LNG imports to reduce fuel costs for power plants. Banks invested some Rs50,000 crores ($7.18bn) in these projects – many unable to repay their debt, leaving Indian public money at risk.
Trump-alley Andrew Wheeler, the head of the U.S. Environmental Protection Agency (EPA), has signed a final ruling that roles back Obama-era emission limits for thermal power plants. The new rule gives U.S. states wide discretion in deciding whether coal power plants need efficiency upgrades or retrofits, hence benefiting the local mining industry.
The International Energy Agency (IEA) is calling on governments and businesses around the world to increase the use of clean hydrogen not only for power generation but also for transport and heating. There are currently around 11,200 hydrogen-fuelled cars on the road worldwide. Existing government targets call for that number to increase dramatically to 2.5 million by 2030.
Outgoing UK Prime Minister Theresa May has committed to a 2050 emissions target of reducing emissions by 80% to “almost zero”. Massive investment in clean energy generation – renewables, hydrogen, flexible gas power and energy storage – will be needed to achieve this goal, but funding is still uncertain.
Burning wood pellets is deemed “carbon neutral” under new EU policy rules, and so-called “biomass energy” is also increasingly popular in Japan and Korea. But some scientists dismiss the policy as “shortsighted” or outright damaging, given that is leads to old forests being chopped down in rural parts of the U.S. and in Eastern Europe.
By mid-June, the German government will receive a comprehensive report on the effects of a carbon price compared with the option of allowing sectoral pathways to reduce emissions. “Transport, buildings and agriculture so far have no form of [carbon] pricing but just some more or less effective mix of measures,” Chancellor Angela Merkel remarked as her cabinet is divided on how to meet Germany’s 2030 climate targets.