Even as global leaders promise action to curb greenhouse gas emissions that are driving climate change, the International Energy Agency reports that continued investments in fossil fuels are wiping out gains from renewable energy investments. Meanwhile, Norway also announced it will continue to exploit oil and gas. And the U.S. has now become the preferred home for bitcoin miners.
Report: Oil investments hurting energy transition
A new report says the world is on track to experience its second-largest documented increase in CO2 emissions this year, even as it rapidly deploys more renewable energy.
The International Energy Agency (IEA) warned countries in its latest report that any positive climate impact due to increases in clean energy use are being rapidly negated by the world’s continued attachment to fossil fuels. The U.N. has also noted that with the current rate of growth in CO2 emissions, the world will likely see an increase in temperature of more than 4 degrees Celsius over pre-industrial levels by the end of this century.
The IEA is urging leaders to be decisive with regard to ending fossil fuel investments at the upcoming COP26 global climate conference, which takes place in Scotland at the end of October.
Even if governments lived up to their commitments to achieve net-zero emissions in a timely manner, global temperatures would still increase by just over 2 degrees Celsius compared to pre-industrial levels, the report said.
The Paris Agreement, in which world governments agreed to limit global warming, encourages limiting any increase to 1.5 degrees Celsius because of the devastating consequences an increase of 2 degrees Celsius would produce.
Norway Will Keep Oil Industry
Norway’s new coalition government has said it will continue to invest in and develop the country’s lucrative oil and gas sector.
Nearly half of Norway’s export revenues come from fossil fuels, and the country’s involvement in the industry was a talking point during the recent elections.
The oil and gas lobby said the new central left government’s policy position would ensure Norway’s continued development while helping to fund the energy transition.
However, climate activists expressed disappointment over the decision, saying the level of Norway’s fossil fuel investments was already unacceptable.
The incoming government has also stated that it wants to achieve a 55% net reduction in CO2 emissions by 2030 and will raise the carbon tax to $230 per ton.
In the meantime, Norway will continue to issue permits for oil and gas exploration in areas already being exploited while looking at technologies that can help cut emissions.
Climate Scientists Urge U.K. Government to Act
Climate scientists from around the world are urging Britain’s Prime Minister to set an example by stopping further exploration for oil and gas in the North Sea.
The 70 scientists signed a letter imploring Mr. Boris Johnson to “walk the walk” as the leader of the U.K., where this year’s most important global climate conference will be held. The COP26 will be held in Scotland at the end of October to discuss further action on the Paris Agreement to limit global warming.
The scientists said failure by the U.K. to take a leadership role in discontinuing investments in fossil fuels will make the upcoming summit a sham. The president of China, which is a major contributor to carbon emissions, has said he will not be attending the summit.
In the letter, the scientists noted the research indicating that more than half of the world’s fossil fuels must remain unexploited if the world is to keep global warming down to an acceptable level, preferably no more than 1.5 degrees Celsius above pre-industrial levels.
The signatories to the letter urged greater emphasis on making the energy transition and on helping workers in the oil and gas industry redeploy to jobs in low-carbon industries.
In response, Mr. Johnson’s spokesman said that he is fully committed to tackling the global climate crisis, but the need for oil and gas will continue for many years still.
EU Discusses Stocking up on Gas
The EU bloc is considering a proposal for members to jointly purchase gas reserves, even as member states roll out programs to help lower-income households withstand the shock of skyrocketing gas and electricity prices,
The proposal envisages cushioning Europe against future energy price shocks by ensuring a stable backup supply, which in turn would prevent the steep rise in prices currently being experienced.
Such a scheme would be voluntary and would not be available in time to deal with the immediate crisis, EU officials said. They are encouraging member states to do what they can to help European households face the winter in light of soaring electricity prices.
Electricity prices in Europe have risen by more than 230% over the past year, driven by the combined effects of renewed economic activity in the wake of the pandemic, depleted gas supplies from last winter, and low wind speeds that have led to a shortfall in wind energy to the grid.
Though gas provides just about 25% of the EU’s energy, its price helps to determine the end price of electricity. That price is partly determined by the last production plant needed to provide round-the-clock electricity supply to the EU bloc, and gas is usually used when other energy sources fail or when more energy is needed during times of peak demand.
The result is that as the price of gas has increased more than 400% in the past year, the price of electricity has risen as well. As a consequence, some countries are pushing for an end to the pricing system that ties the price of electricity to the price of gas.
In the meantime, the EU has encouraged its members to draw down some of the money gained from taxing carbon to help support families that are in need of financial assistance with electricity bills. The bloc is also considering establishing a 72 billion euro fund to help deal with energy poverty experienced by households.
Officials say that the current energy crisis the bloc is facing underscores the need to transition as soon as possible from reliance on fossil fuels.
On the other hand, Hungary is laying the blame for Europe’s energy crisis on the decision to move away from oil and gas.
U.S. Replaces China as Top Destination for Bitcoin Miners
The U.S. now hosts more bitcoin mining operators than China, thanks in part to its abundant and cheap renewable energy sources.
China has been the leading destination for bitcoin miners for many years because of its cheap energy supply, but it clamped down on the companies operating there last year, causing many operators to pack up and leave.
Consequently, bitcoin mining operations have migrated to the U.S., where low-cost renewables allow them to operate at a wider private margin, since bitcoin mining’s greatest cost is tied to its energy needs.
In addition, some U.S. firms have been working over the past two years on developing a welcoming ecosystem for bitcoin miners, in the belief that miners could be encouraged to set up operations in the U.S. Some states, like Texas, are also favorably disposed toward cryptocurrencies and provide an enabling regulatory environment for miners to operate.
Bitcoin operations are also bringing environmental benefits since some are using natural gas from sites that are no longer in operation but continue to emit greenhouse gases.
However, Kazakhstan has also become very popular with bitcoin miners, despite most of its energy coming from coal. It is the second-largest bitcoin operating market behind the U.S.
because it supplies abundant and cheap energy from coal.
Bitcoin is now valued at $60,000 and reports suggest it will soon be traded on the New York Stock Exchange via an exchange-traded fund.
Canadian City Provides Online Tool for Solar Installation
A Canadian city has provided its residents with an online tool to encourage them to install solar panels on their homes.
The City of Victoria provided the tool that allows residents to obtain the quantitative information they would need to make a decision, including the amount of sunshine they can expect in their location, the best financing options for installing solar, as well as opportunities for rebates.
The city wants to encourage residents to move away from fossil fuels because of climate change. Officials said the city receives enough sunshine to make solar a viable option for homeowners to obtain their electricity supply.
Solar installations in the city now produce enough electricity to power more than 100,000 homes. The cost of installing a solar system for a house starts at around CA$18,000.
Opinion writer: Jewel Fraser
The opinions, beliefs, and viewpoints expressed by the various authors do not necessarily reflect the opinions, beliefs, or viewpoints of Interactive Energy Group, LLC (IEG) or its parent companies or affiliates and may have been created by a third party contracted by IEG. Any content provided by the bloggers or authors are of their opinion and are not intended to malign any individual, organization, company, group, or anyone or anything.
Brought to you by energysavings.com
All images licensed from Adobe Stock.
Featured image: