This week, we're exploring new policies and innovations to decarbonize shipping, how Paris embraced bikes to cut air pollution by 50%, and a solar company in Nigeria.
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UN passes carbon tax on shipping: The UN passed a plan to charge ships at least $100 for every tonne of CO₂ they emit above a decarbonization target, despite US threats to retaliate. The agreement, set to be formally adopted in October and implemented by 2028, aims to reduce shipping emissions and was passed by 63 member states, with 16 voting against and 24 abstaining. The plan has been criticized by environmental groups, such as Transport and Environment, for not being ambitious enough to meet the IMO's target of net zero emissions by 2050, with director Faïg Abbasov stating that the deal is "not fit for purpose."
Making shipping greener: Shipping companies are adopting new technologies to reduce their carbon emissions, including route optimization services like Sofar Ocean's Wayfinder, which uses data from buoys called Spotters to alert captains of the best routes. Other technologies being used include high-tech sails, onboard carbon capture systems, and solar panels, with companies like Berge Bulk and Mitsui O.S.K. Lines already seeing significant fuel consumption and emissions reductions.
Paris air pollution down 50%: Since implementing a radical bike-friendly transformation led by Paris Mayor Anne Hidalgo, Paris has reduced its air pollution by 50%. The transformation has included closing over 100 streets to cars, removing tens of thousands of parking spots, and adding hundreds of miles of bike lanes. The changes have led to a significant decrease in car traffic, with bike use doubling during rush hour between 2022 and 2023, and have resulted in a more livable city with cleaner air and less traffic noise.
Improving the UK's grid: The UK government aims for 95% of Britain's electricity to come from clean sources like wind and nuclear by the end of the decade, up from 60% in 2023. National Grid is working to reconfigure the whole network to manage the shift to renewable energy, with a planned investment of up to £35 billion over five years. The transition to an electrified economy will require a highly reliable grid, with demand for electricity expected to double in the coming decades, driven by electric vehicles and data centers.
Energy startup for data centers: Mainspring Energy, backed by Khosla Ventures, has raised $258 million to support its novel generator technology for powering data centers. The company's linear generators can run on various gaseous fuels, including natural gas, ammonia, and biogas, providing a reliable and cost-competitive power source. The company's generators can provide tens of megawatts of power and offer a lower total cost of ownership than traditional gas engines or turbines, with a three-year payback period, making them an attractive option for data centers requiring large amounts of power.
Solar company expands in Nigeria: Arnergy, a clean tech startup backed by Bill Gates's Breakthrough Energy Ventures, has raised $18 million to expand solar access in Nigeria. The company's lease-to-own product, Z Lite, has gained traction as a cost-savings strategy, with customers paying fixed monthly fees over 5-10 years before owning the system. Arnergy plans to use the funding to install over 12,000 systems by 2029, but a proposed government policy to ban solar panel imports could threaten its momentum.
France backs hydrogen industry: France is unveiling new support for its hydrogen industry, including a tender to subsidize hydrogen-powered vans and support for electrolyzer maker Gen-Hy. The move comes after project setbacks and high production costs have hindered the industry's growth, despite its potential to cut emissions. The French government had previously pledged €9 billion in subsidies for clean hydrogen in 2021, but has since trimmed production targets due to slower-than-expected progress.
Occidental buys direct air capture company: Occidental, an oil and gas giant, has acquired carbon removal startup Holocene through its subsidiary Oxy Low Carbon Ventures. The deal's amount was not disclosed, and Occidental plans to use Holocene's technology for direct air capture research and development. This is Occidental's second direct air capture startup acquisition in two years, following its $1.1 billion purchase of Carbon Engineering in 2023.
Judge rules EPA must unfreeze funds: A federal judge has ruled that the EPA must unfreeze funds for a 'green bank' to finance clean energy and climate-friendly projects. The ruling is a defeat for the EPA, which had argued that the program was mismanaged. The EPA has appealed the decision, with Associate Administrator Molly Vaseliou contending that the court lacks the power to reinstate the funds.
Trump opens marine protected area: President Trump has opened the Pacific Islands Heritage Marine National Monument to commercial fishing, aiming to make the US the "world's dominant seafood leader." The monument, established by President George W. Bush and expanded by President Obama, covers nearly 500,000 square miles in the Pacific. Environmentalists have criticized the move, saying it will pose a serious threat to the area's fragile ecosystems and have vowed to sue to stop it.
Trump halts NY offshore wind project: The Trump Administration has halted work on Equinor ASA's Empire Wind project off the coast of New York, putting $28 billion of investment at risk. The decision is a significant blow to the offshore wind industry, which has seen the US as an attractive growth market and may chill investment in the sector. The halt on the Empire Wind project, as well as potential stops on other projects like Vineyard Wind and Revolution Wind, may have long-term effects on the industry and create uncertainty for developers and investors.
Green stock exchange gets SEC approval: The SEC has approved the Green Impact Exchange (GIX) to register as a national securities exchange. GIX plans to be the first exchange in the US dedicated to the sustainability economy and expects to begin trading early next year. Despite current challenges in sustainable investing, GIX founders believe global demand will grow as investors consider the financial implications of climate change.
Pressure on bees: Honeybee colonies in North America are under threat due to parasites, habitat loss, climate change, and pesticides, with potential losses of up to 70% of the nation's honeybee colonies this year. The beekeeping industry is crucial for pollinating around 100 crops, and the loss of bees could lead to increased food prices and decreased crop production. Beekeepers are facing massive beehive collapses, with over half of the 2.8 million colonies collapsing, costing the industry $600 million in economic losses.