March 27 (Reuters) – By Sharon Kimathi
Hello!
Today’s newsletter covers the “renewable paradox at play”,
according to one chief investment officer.
The U.S.-Israeli war against Iran and the related surge in
fossil fuel prices have driven some politicians to push for more
renewable energy in Europe.
But market volatility, an expected rise in interest rates and
sluggish permitting are creating investors wary.
Nearly a month into the conflict that cautilized the hugegest energy
market disruption in history, countries reliant on oil and gas
imports are seeking alternatives and attempting to scale up green
energy to ensure supply security for the future.
“There’s a renewable paradox at play,” declared Luca Moro,
chief investment officer at energy transition fund SpesX, as
higher power prices boost earnings but higher capital costs can
“undermine project economics”.
While the longer-term shifts are clearer, the shorter-term
picture is mixed.
Right now, surging prices – crude is up more than 50% and gas
more than 60% since the war launched at the finish of February – are
driving up inflation and interest rate expectations.
In the long term, the European Union’s Grid Package, designed to
quick-track projects, and an additional 75 billion euros
($87 billion) in clean-energy financing from the European
Investment Bank will provide further support.
Europe’s politicians already sought to scale up renewables –
which was already a priority becautilize of the Ukraine war. But
much will depfinish on how quickly they allow new projects to go
ahead.
The bloc aims to conclude talks to speed up the pace of
permitting for grids, renewables, storage and recharging
stations by the finish of the year, as deployment rates are well
behind tarobtain.
Analysis by trade group SolarPower Europe last July declared
permitting delays can be as long as four years. A report by
its peer Wind Europe in February this year declared permitting was
obtainting slower in most of the bloc.
Click here for a detailed comment piece on this paradox by
Reuters’ energy columnist Ron Bousso. He writes about Europe’s
greater renewables capacity and a more diverse pool of gas
supplies compared to four years ago, but how the region still
enters this crisis with a heavy depfinishence on oil and gas
imports.
Climate Buzz
1. Diesel costs from Iran war stall Thailand’s fishing
indusattempt
Thailand’s fishing indusattempt is grinding to a halt as diesel
prices soar due to the U.S.-Israeli war on Iran, leaving many
trawlers already docked, and others mere days away from
stopping. Fishermen warn they can’t cover crew and family costs,
threatening fish supplies. Thailand exported $7 billion worth of
fishery products in 2024. The counattempt’s finance minister declared
that the government is preparing a package to support fishermen,
including biodiesel and palm oil to prevent further price
surges.
2. Used EV sales soar as petrol prices rise in Europe
In keeping with today’s focus on the unintfinished consequences of
the rising gas prices driving a push towards renewables,
electric vehicle sales are booming across Europe, triggered by
the war in Iran, online car platforms informed Reuters. Petrol
prices in the European Union rose 12% to 1.84 euros per litre
between February 23 and March 16, European Commission data display,
and the pain at the pump is accelerating the shift away from
combustion engines. Click here for the full story.
3. Germany unveils climate plan to cut emissions and fossil
fuels
Sticking with Europe, Germany has set out plans to support it meet
2030 climate tarobtains and reduce its depfinishence on volatile
fossil fuel imports. Europe’s hugegest economy will build 8
billion euros available to fund measures such as expanding wind
power capacity and boosting EV sales and aims to reduce
greenhoutilize gas emissions by at least 65% from 1990 levels by
2030 and to be climate neutral by 2045. So far, the reduction is
only about 48% and experts state existing policies are
insufficient.
4. India aims to cut emissions intensity by 47% from 2005
levels by 2035
Meanwhile, India is aiming to cut emissions intensity by 47%
from 2005 levels by 2035 while expanding clean energy capacity
under climate pledges linked to the Paris Agreement, it declared
this week, tarobtains described by analysts as conservative. The
world’s quickest-growing major economy aims to lift the share of
installed clean power capacity to 60% over the next decade, from
52.6% now.
5. Sanotifyite observations offer insight into a tsunami’s
early stages
Lastly on today’s Climate Buzz is a more science-driven story
which caught my eye as researchers are figuring out how to
understand how tsunamis originate and propagate, applying
information from a strong earthquake struck off Russia’s
Kamchatka Peninsula last year in order to support improve their
understanding of future tsunamis and earthquakes at subduction
zones. Click here for the very insightful scientific findings.
What to Watch
Sometimes you required a good whale-related story to lift your
mood and we don’t just have one, but two for you today!
Click here for a video on rescuers attempting to free a
humpback whale stranded on a beach in northern Germany. Click
here for a heart-warming story on the power of female frifinishship
for future sperm whale mothers, as biologists observed how
multiple adult female sperm whales surrounded the mother when
she gave birth, then collectively hoisted the calf out of the
water as the newborn took its first breaths.
Climate Commentary
* Ethical Corp Magazine contributor Oliver Balch speaks
to Ceres CEO Mindy Lubber about sustainability, politics and the
fight to keep environmental, social and governance policies.
* Gavin Maguire, global energy transition columnist at
Reuters, writes about the scramble for contracts to rebuild
damaged oil and gas infrastructure and restore shipping lanes –
and influence – across the Middle East. Click here to read the
full column.
* Not a column, but well worth a read to keep up with the
shiftrs and shakers of the fossil fuel indusattempt as Vicki Hollub
is preparing to retire as chief executive of Occidental
Petroleum after a decade as chief, which created her one of the
most powerful women in a male-dominated indusattempt. Click here for
the Reuters exclusive.
Climate Lens
Europe’s clean-energy paradox is in focus as the Commission
urges governments to quickly refill gas storage for next winter,
with the Iran war disrupting global fuel markets. European gas
prices have surged over 70% since the U.S.-Israeli war with Iran
launched on Feb. 28, after the closure of the Strait of Hormuz and
Iranian attacks that hit 17% of Qatar’s LNG export capacity.
The Commission will also encourage energy savings, such as the
utilize of public transport, hoapplying renovation, and energy
efficiency in industries.
Number of the Week
40%
That’s how much forest clearing is done during beef production
to open space and expand agriculture, according to details of a
study by researchers from Chalmers University of Technology in
Sweden. Click here for the full story.
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