Afleveringen
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Nuclear energy is facing a marked uptick in private investment over the next five years, spurred by the escalating demand for clean energy and energy security. Both governmentsâ and the private sector's net-zero ambitions are driving significant interest in high-growth energy areas like nuclear energy. Further, according to the International Energy Agency, existing nuclear plants make up a large part of global energy production today - representing nearly 10% of global energy production and nearly 20% in advanced countries. The further growth of nuclear power is becoming critical to the decarbonization of the electricity grid and the growing market for emissions-free energy.
In this episode, host Lincoln Payton brings together a panel from investment giant Brookfield Corporation to explore the transformative role that nuclear energy plays in the pursuit of a net-zero future, particularly in the private sector investment landscape. Joining Lincoln for this episode are Pramod Shukla, Managing Director in Brookfieldâs Private Equity Group; Sam Meyers, Senior Vice President at Brookfield Asset Management; and Mike Daschle, SVP of Sustainability for Brookfield Properties.
The discussion spans the intricate considerations around nuclear power investments, the ability of nuclear power to meet the worldâs growing energy demands, and the role of companies like Westinghouse within the broader nuclear industry. A projected and insightful outlook on nuclear energy, Lincoln and the panel acknowledge its significance and the expected evolution of investments and deployments over the next five years.
Key Takeaways:
Clean power is on the rise: the world is turning to nuclear energy as a critical tool for decarbonization, as this clean energy source offers a vital solution for achieving net-zero emissions goals.
Gigawatt-scale giants lead the way: while smaller modular reactors (SMRs) hold immense potential for future deployments, their development remains in its early stages, meaning that larger, gigawatt-scale plants will likely dominate the energy landscape for the next decade.
Public sentiment shifting in favor: public opinion toward nuclear power is undergoing a positive shift with growth in bipartisan support in the USA coupled with the urgency of climate action and the need for clean energy solutions, all of which paint a promising picture for the future of nuclear power.
Resources:
IAEA's revisions up of projected nuclear buildout by 2050: https://www.iaea.org/newscenter/pressreleases/iaea-annual-projections-rise-again-as-countries-turn-to-nuclear-for-energy-security-and-climate-action
Energy Monitor on SMRs: https://www.energymonitor.ai/sectors/power/small-modular-reactors-smrs-what-is-taking-so-long/?cf-view
Bipartisan support in the U.S. is up significantly compared to polling in 2020: https://www.pewresearch.org/short-reads/2023/08/18/growing-share-of-americans-favor-more-nuclear-power/sr_23-08-18_nuclear-energy_1/
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Following a riveting conversation with Killian Daly of EnergyTag about hourly matching in carbon accounting, this Energy Minute looks at the work of the Emissions First partnership - a group of companies including Akamai, Meta, General Motors and Salesforce - and its collective focus on carbon matching in clean energy procurement.
Cleartraceâs Steven Goldman delves into the difference between hourly matching and carbon matching approaches, and what principles the partnership members are applying in their work. He also explores the evolution from traditional electricity purchasing strategies and discusses how aligning with this approach might boost companies' carbon impacts of their energy procurement.
Key Takeaways:
The Emissions First partnership seeks to maximize greenhouse gas emission reductions from the electricity system through corporate action. This includes prioritizing decarbonization, valuing grid decarbonization progress, incentivizing innovation in the emissions data ecosystem, and implementing accounting governance.
The coalition aims to source energy based on emissionality, focusing on the marginal carbon impact of each procurement rather than matching based on timing or which grid or market the energy is sourced in. Instead, they encourage companies to schedule electric loads around system signals like high marginal greenhouse gas emissions.
This approach signifies an evolution from traditional electricity purchasing strategies based on price or annual matching while providing flexibility for energy procurement teams to source for the greatest - while still feasible - marginal carbon impact.
Resources:
Emissions First Partnership: https://www.emissionsfirst.com/
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Zijn er afleveringen die ontbreken?
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Decarbonization has diversified from simply vanilla to 31 flavors, where a range of goals and strategies are being adopted as companies work to reduce carbon emissions and other environmental impacts. One key strategy thatâs emerged has been time-matched procurement of electricity, ensuring that the electricity thatâs sourced corresponds to when and how much electricity is used onsite.
Granular energy attribute certificates (EACs), which add transparency by including information on where and when energy is sourced, are crucial to delivering 24/7 carbon-free energy matched on the hour. On this episode, host Lincoln Peyton talks with EnergyTag Executive Director Killian Daly about how the organization is leading the charge for granular certificates, including advising governments around the world on their use and how they can ensure commodities like hydrogen are produced sustainably. They also discuss the complex world of voluntary standards, market impacts, policy implementation, and the ambitious mission of EnergyTag, which is backed by big names like Google and Microsoft. As EnergyTag champions global adoption of more granular carbon accounting standards, Killian will also shines a light on his role in harmonizing these efforts through leading the Carbon Data Specification initiative at the Linux Foundation.
Key Takeaways:
Granular data is key to transparency and accountability: by supplying information on when energy is generated, granular data enables organizations to better match the energy they source with consumption, better ensuring companies decarbonization effortsâ deliver the desired impacts.
Education leads to action: regulatory measures, such as the push for renewable hydrogen in Europe, will help suppliers shape how they source energy and produce commodities like hydrogen, chemicals and steel. Clear definitions of 'green' and enforceable standards can safeguard against inefficacy or greenwashing of products.
Strategic advantages of sustainable practices: There is a competitive edge companies gain by committing to sustainable practices â from price stability in energy markets to consumer trust in green certification. Going beyond the rhetoric of corporate responsibility, Killian articulates the tangible benefits of embedding sustainability into business models.
Resources:
Learn more about EnergyTag: https://energytag.org/
Case studies of granular certificate use: https://energytag.org/case_studies/
The Granular Certificate Standard: https://energytag.org/standards/
Canary Mediaâs series on the green hydrogen debate: https://www.canarymedia.com/articles/hydrogen/the-great-green-hydrogen-battle
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Investing in infrastructure is different and more complex than many other investment classes, often involving significantly longer timeframes and larger capital expenditures. Investing in sustainable infrastructure â like renewable energy, energy storage, or electric vehicle fleets â can be attractive to investors but adds complexity and often requires delivering with newer technologies.
Generate Capital was founded in 2014 with an unusual approach: invest, operate and maintain a range of sustainable infrastructure assets for the long term â creating âsustainable infrastructure as a serviceâ â that can provide extended value to investors and customers while yielding lasting environmental, social, and economic benefits.
Nam Nguyen, Chief Operating Officer of Generate Capital and a visionary leader in the clean energy sector, joins Lincoln on the podcast to talk about how she and Generate Capitalâs team are creating long-term impacts with strategic investments in the sustainable energy, e-mobility, waste and smart cities sectors.
Key Takeaways:
When Generate examines an investment opportunity, they view it through the lens of a long-term asset owner, looking at impacts and returns across 20, 30, or 40 years. Therefore, when looking at the opportunities, they are also looking for drivers that are going to factor in for the long term. In addition, they are looking at how to optimize assets and facilities so that they are lasting for a long time.
Generateâs investment strategy isnât limited to clean energy. Part of their portfolio is a platform called Generate Upcycle, which is focused on the circular economyâkeeping waste streams out of landfills, and turning that waste into something more renewable, whether it's in the form of renewable electricity, renewable natural gas, compost or other uses.
Generateâs team has a problem-solving mindset, because markets change quickly and the world is always evolving. Because of this, Generateâs team look at issues, like grid instability in California, and regularly sit down with the companyâs partners to ask, âhow do we solve for this? How do we change the way we utilize the assets weâve built to address fresh concerns? How do we optimize portfolios in different parts of our customer base?â
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On this Energy Minute mini-sode, Steven Goldman explores the world of âgreen tariffs,â voluntary utility programs that enable eligible customers to buy the âbundledâ energy and associated Renewable Energy Certificates (RECs) from renewable energy projects. These programs are typically offered by local electric utilities and approved by state public utility commissions (PUCs).
He explains the main types of green tariffs and how they are an important tool for companies seeking to procure clean energy, as they offer a number of benefits, including predictability, reduced upfront costs, and brokerless access to clean energy. We'll discover the benefits of participating in these programs, including access to clean energy without high upfront costs and the ability to reduce operational carbon emissions. Join us as we uncover some of the more innovative green tariff programs and how utilities are working towards meeting the needs of companies in their clean energy sourcing.
Key Takeaways:
Green tariffs are voluntary utility programs that enable eligible customers to buy green power - both the energy and the associated RECs - generated by renewable energy projects. They are more common in traditionally regulated electricity markets and are an avenue for companies to source clean energy without having to pursue a bilateral agreement with a power producer.
There are three main types of green tariffs: subscription programs, sleeved power purchase agreements (PPAs), and market-based rate programs.
Green tariffs offer several benefits, including predictability, reduced upfront costs, and brokerless access to clean energy. As of January 2023, there are 50 approved or pending green tariff programs offered by 40 utilities in 28 states.
References:
CEBAâs Green Tariffs report (updated in Jan 2023): https://cebuyers.org/solutions/procure-clean-energy/green-tariffs/#:~:text=Green%20tariffs%20are%20voluntary%20utility,a%20customer's%20current%20electricity%20bill
EPA primer on Green Tariffs: https://www.epa.gov/green-power-markets/utility-green-tariffs#:~:text=Utility%20green%20tariffs%20are%20optional,a%20special%20utility%20tariff%20rate
S&P Global, âUtility green tariffs fuel growth in US corporate renewables marketâ : https://www.spglobal.com/marketintelligence/en/news-insights/research/utility-green-tariffs-fuel-growth-in-us-corporate-renewables-market
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Most people think of jet fuel the same way they think of filling up their car with gasoline: go to the pump, fill the tank, pay the price per gallon. But decarbonizing business travel and air freight is a much more complex task, where sellers, buyers and users are all part of the transaction, and standards for what makes aviation fuel âsustainableâ are still being set.
On this episode of The Decarbonization Race, new co-host Steven Goldman takes flight into the world of Sustainable Aviation Fuel or SAF â including the market currently being built for it, the range of ways SAF is being produced, and what structures need to be in place to make sure SAF is not only affordable but provably more sustainable than conventional fuels. He's joined by Kim Carnahan, founder and CEO of Neoteric Energy & Climate. Kim co-founded the Sustainable Aviation Buyers Alliance (SABA), an industry body bringing together a range of NGOs, airlines and other companies investing in SAF supply and technologies.
How does she know so much about the intricacies of decarbonizing international sectors like aviation and shipping? Because while working at the State Department, she served as the United Statesâ Chief Negotiator on Climate Change. Kim played a central role in the negotiation of the Paris Agreement and its implementing guidance. Kim also led the U.S. team that negotiated the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) â a parallel agreement to Paris governing the international aviation sector â and its implementing guidance.
In a fast-paced and wide-ranging interview, Kim discusses the different approaches jurisdictions are taking when it comes to sustainable aviation fuel (SAF) certification and highlights the need for clear guidance from the Greenhouse Gas Protocol and Science Based Targets Initiative. SABA is not only helping create certification standards for SAF, but is working with airlines, suppliers and buyers (who often arenât the airlines themselves) to build the marketplace, create a book-and-claim system similar to Renewable Energy Certificates to track supply and usage, and advance policies to keep SAF moving down the cost curve.
Key Takeaways:
ââThe aviation industry contributes more than 2% of global energy-related emissions. Today, commercial aviation is fueled primarily by kerosene-based fuel Jet-A/Jet-A1, which can be easily substituted with SAF blends. SAF is a liquid âdrop-inâ fuel currently used in commercial aviation which reduces CO2 emissions, which can be produced from several feedstocks, including but not limited to waste oil and fats, municipal waste, non-food crops, CO2 and water. SAF meets all the same technical and safety requirements as fossil-based jet fuel and can therefore be used safely on existing aircraft and within current airport systems.
SABA is managed by Environmental Defense Fund and Rocky Mountain Institute with guidance by Neoteric Energy & Climate, but was founded by a diverse set of companies working to tackle the decarbonization of aviation â Bank of America, Boeing, Boston Consulting Group, Deloitte, JPMorgan Chase, McKinsey & Company, Meta, Microsoft, Netflix and Salesforce. Air carriers involved in the initiative include Alaska Airlines, Amazon Air, JetBlue, United Airlines and UPS.
Standardization and certification is critical to growing the sustainable aviation fuel market. The certification guidelines developed by SABA are crucial to prevent negative impacts on the environment and society, particularly when dealing with biomass, organic waste and crop-based fuels. Saba's focus on certification helps companies navigate the market, understand what different sourcing criteria should be, and gain assurance that the fuel they are purchasing is sustainable.
Resources:
Sustainable Aviation Buyers Alliance website
SABAâs Sustainable Aviation Fuel 101 Guide
Recent announcement of Minnesota creating a SAF Hub, in partnership with Bank of America, Ecolab, Delta Air Lines and Xcel Energy.
Boeingâs SAF Dashboard
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Corporate demand for clean energy continues to grow across the globe, particularly in the United States. Apex Clean Energy, a developer of commercial-scale wind, solar and battery storage projects, is a key player in this growth. With a diversified portfolio of 60 gigawatts and more than $2B in assets under management across the United States, Apex has a range of corporate offtakers including Google, IKEA, Cargill, and Meta.
On this episode of the Decarbonization Race, VP of Energy Marketing for Apex, Erik Haug joins our new co-host, Cleartrace Head of Customer Growth Zach Livingston, to discuss Apexâs role in the evolution of the renewable energy space, how environmental, social, and governance (ESG) considerations are shaping decisions around clean energy purchasing, and the complexities of educating consumers and communities to accelerate the growth of renewable power projects. He gets candid about the growing role of battery storage and other forms of dispatchability in Apexâs portfolio as well as how theyâre prioritizing looking âbeyond the megawattâ.
Key Takeaways:
Aggregation is playing a crucial role in driving renewable energy projects, enabling smaller customers to pool demand to access larger-scale projects at competitive prices. There are challenges and benefits in both self-aggregation and advisor-led aggregation within the evolving landscape of renewable energy finance and procurement.
Apex works to empower customers through education. Renewable energy advisors play a pivotal role in educating and guiding customers toward making informed decisions. By helping customers understand the potential of renewable energy solutions and how they align with their goals, these advisors facilitate the transition to a low-carbon future.
The Investment Tax Credit was extended to standalone energy storage in the Inflation Reduction Act, which will bring more storage and resulting flexibility onto electric grids around the U.S. However, a mechanism is still needed to compensate battery storage projects to maximize how much decarbonization impact they deliver for the grid. An incentive rewarding energy storage for delivering net carbon emission reduction could significantly accelerate the already fast-growing market for energy storage.
Resources:
Apex Clean Energy - https://www.apexcleanenergy.com/
Connect with Erik Haug - https://www.linkedin.com/in/erik-haug-03b35539/
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Nuclear energy is a low-carbon source of electricity that has been playing a vital role in the global energy mix for decades. Today, there are about 440 nuclear power reactors operating in 33 countries, providing about 10% of the world's electricity. While the nuclear energy industry has faced an array of challenges over the last few decades - including plant closures due to competition from cheaper natural gas and renewable energy sources, as well as overall safety concerns - nuclear technology remains a key part of the decarbonization puzzle.
In this episode, host Lincoln Payton speaks with Dr. Rita Baranwal, Senior Vice President at Westinghouse Electric Company, who leads the company's work around its AP300 Small Modular Reactor. She discusses with Lincoln the growth of small modular reactors (SMRs) as a pathway to growing nuclear power adoption, the rigorous regulatory framework surrounding nuclear plant deployments, and the critical role that this power source can play in the decarbonization journey.
Key Takeaways:
Dr. Baranwal addresses common safety concerns regarding nuclear power, and emphasizes the significant improvements made in safety and technology over the years. She discusses "walk-away safe" designs and the importance of continuous innovation and collaboration with regulators to ensure success.
Westinghouse recently launched its AP300 SMR technology, more compact reactors that can serve in a wider range of applications, from powering data servers and hospitals to serving military needs. The flexibility and scalability of SMRs make them appealing to communities, states, companies, and countries looking for clean energy solutions, especially where the need for âbaseload powerâ is coming in smaller increments than nuclear has typically been sourced for.
The nuclear industry takes immense pride in its rigorous training programs and there is heavy focus on continuous education and the collaboration between operating plants, utilities, and organizations to ensure a well-trained workforce. Dr. Baranwal also discusses the exciting potential for remote operation of microreactors, opening up new possibilities in industry applications.
Resources:
Westinghouse Electric Company
Bettis Atomic Power Laboratory
Nuclear Regulatory Commission (NRC)
More information on the AP300 SMR from Westinghouse
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Clean energy doesn't have to cost more. California electricity supplier Peninsula Clean Energy (PCE) is charting a path to supply 24/7 renewable electricity in northern California that is competitive today and less expensive in the long run compared to typical utility electricity offerings.
How is the company getting there? On this episode of The Decarbonization Race, renewable energy pioneer and PCE CEO Jan Pepper joins Lincoln to explain it all, including the genesis of PCEâs ambitious strategy to supply 100% renewable energy matched hourly to its customer base by 2025. Jan discusses the role community choice aggregators (CCAs) like PCE are playing in putting communitiesâ priorities first when procuring energy for their customer base, and how PCE is both keeping rates competitive and ensuring long-term stability, compared to offerings that have greater volatility from fuel price swings.
Jan Pepper has over 30 years of energy and utility experience, with a focus on renewable energy contracting and financing. Across her career, sheâs founded four energy-related startups, at her company APX she developed and pioneered the first use of renewable energy credits, and her company Clean Energy Markets designed and implemented the successful Solar Renewable Energy Credit (SREC) program for the State of New Jersey. And sheâs also had a political career, as both a City Council member and mayor of the city of Los Altos, California. Her expertise has been vital in guiding Peninsulaâs sourcing of electricity from different renewable energy and energy storage projects, navigating factors such as price, location, and diversity of supply.
Key Takeaways
Community choice aggregators (CCAs) provide an alternative for California electricity customers, allowing cities or counties to procure and supply electricity for their residents separately from existing utilities. The CCAs decide the mix of electricity and deliver it via utility-owned transmission and distribution networks.
Peninsula Clean Energy is a âpublic agency startup,â focused on supplying renewable energy and matching supply to demand on an hourly basis. Their goal is to supply 100% renewable energy, and in the process ensure price stability via long-term contracts, avoiding the volatility from fossil fuel prices. Because Peninsula procures from a range of different sources and technologies, the utility is able to provide electricity supply at a competitive rate and ensure a diverse portfolio.
PCEâs ambitious strategy is to supply 100% renewable energy matched hourly to its customer base by 2025. The utility has already procured enough solar, wind, geothermal and hydropower resources to cover 75% of its 24/7 strategy by 2025, and will procure additional capacity to reach 99% by the end of 2025. This is providing a blueprint for other utilities to decarbonize, evaluate their modeling, and dispatch storage.Resources
Peninsula Clean Energy white paper, âAchieving 24/7 Renewable Energy by 2025â
U.S. Environmental Protection Agency on Community Choice Aggregation programs
Our Energy Minute segment from earlier this season to go deeper on Peninsula Clean Energyâs 100% renewable energy strategy and how itâs progressed
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In this Energy Minute episode, Dana Dohse and Steven Goldman jump into the European Union's Corporate Sustainability Due Diligence Direction (or CS3D for short) recently passed by the European Parliament. While the CS3D is not a regulation -- meaning member states will have several years to develop their own respective national laws on implementing the directive -- it still holds significant weight, and will impact both EU-headquartered companies as well as non-EU firms exporting goods via the EU or with significant operations in the EU.
Compliance with the due diligence requirements will involve various jurisdictions and mechanisms, making it a complex endeavor for companies, meaning companies need to pay close attention as EU member nations issue their own regulations to better understand the impacts to their operations. The directive will have significant implications for corporations' sustainability planning, alignment with the Paris Agreement, and require a greater understanding of supply chain risks.
Listen in as Dana and Steven dig into this environmental and human rights legislation and its implications for companies operating in the EU, and explore the potential costs and benefits for companies in different high-impact sectors, the role of due diligence in risk management and the impact on local communities.
Key Takeaways
The EU is imposing a higher level of diligence than other parts of the world, which means that non-EU firms exporting goods via the EU or linked to EU companies will be impacted. Compliance with due diligence requirements will involve various jurisdictions and mechanisms, creating new costs and uncertainties for companies.
The CS3D is a piece of legislation passed by the European Parliament that requires EU and non-EU companies to comply with due diligence requirements to operate in EU markets. This directive applies to companies based on their headcount or turnover thresholds, depending on if they operate in a high impact sector. This means that companies need to have a clear understanding of their eligibility for the requirements of CS3D and properly classify their business to meet the criteria during two consecutive financial years.
The directive will lead to changes in internal controls and business procedures that companies will need to put in place to comply with the directive. Companies will bear the cost of establishing and operating due diligence procedures as part of their business procedures, and may have to pay up to 5% of their global turnover as damages in case of non-compliance. These costs are significant and will add up over time, causing a financial incentive for companies to comply.
Resources:
European Union information page on the CS3D: https://commission.europa.eu/business-economy-euro/doing-business-eu/corporate-sustainability-due-diligence_en KPMG on the CS3D: https://kpmg.com/xx/en/home/insights/2023/02/the-eu-corporate-sustainability-due-diligence-directive.html -
On this episode of the Decarbonization Race, Lincoln Payton dives deep into the world of sustainable architecture with architect Lori Ferriss, whoâs worked across her career to square sustainability, historic preservation and aesthetic concerns in cities swimming in history, like Boston.
As Director of Sustainability and Climate Action at Boston architectural firm Goody Clancy, Lori leads research initiatives and project design and implementation serving a range of sectors including higher education. For Lori, building reuse is a significant form of climate action. Her far-reaching work has expanded the role of architects while simultaneously elevating building reuse as a prime way to combat climate change.
Lori and Lincoln discuss the interplay between both operational and embodied carbon in buildings, debating investments to reduce carbon emissions through retrofitting or new-build construction (including with the Carbon Avoided Retrofit Estimator or CARE Tool, which Lori helped develop), policies passed by cities like London and Cambridge, Massachusetts that prioritize life cycle assessments and emissions disclosure, and changes in the materials being used like biogenic materials for insulation or green cement or steel.
Key Takeaways:
Boston has implemented policies and ordinances to achieve net-zero operations for commercial buildings such as the Building Energy and Reporting Disclosure Ordinance (BERDO 2.0) to achieve net-zero operations for commercial buildings over 20,000 sqft. BERDO 2.0 requires disclosure and reporting followed by reductions, with a financial penalty for non-compliance. Boston's zero net carbon zoning policy complements BERDO by requiring new buildings to meet similar standards.
Biogenic materials are becoming more viable for commercial construction. These natural materials like wood, cross-laminated timber, hemp, and straw bale are becoming more viable for commercial construction, with their environmental benefits dependent on where the materials come from, how they are produced, and they are disposed of or repurposed at the end of their life cycle.
The CARE (Carbon Avoided Retrofit Estimator) Tool was developed to help planners, owners, and design professionals calculate the total embodied and operational carbon of existing buildings after energy efficiency upgrades or renovations. CARE can help estimate the environmental value of reusing existing buildings, and inform decisions on whether to retain buildings or demolish and build new ones.
Resources
A Better City blog post, "BERDO 2.0 Explained"Carbon Avoided Retrofit Estimator (CARE) Tool
Architecture 2030
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On this Energy Minute episode, Dana Dohse and Steven Goldman take a deep dive into the Corporate Sustainability Reporting Directive (CSRD) legislation that will be taking effect in the European Union in 2024. Under the new legislation, aligning with Paris climate goals or ensuring ethical supply chains will move from voluntary practices or proactive risk management to regulatory requirements with oversight by EU nations.
Listen in as they examine the legislation's details, requirements, and potential impact on businesses and society, discuss the differences between the CSRD and the proposed SEC rules on climate-focused disclosure, how they reflect existing sustainability reporting standards such as SASB/ISSB standards, and analyze the legislation's implications and advise companies on how to prepare for compliance.
Key Takeaways
The EU adopted a âdouble materialityâ approach as the basis of the new legislation, meaning it encompasses not only ESG issues with material impacts on financial performance, but also impacts of the company's operation on the environment and society.
Environmental, social, and governance (ESG) factors covered by the CSRD will be significantly more far-reaching than the proposed SEC rules on climate-focused disclosure, encompassing issues including climate change mitigation and adaptation, water and marine resources, equal treatment and opportunities, sustainability risk management and internal controls, and anti-corruption policies, to name a few.
Unlike the proposed SEC rules, the CSRD explicitly includes Scope 3 emissions in its carbon footprint disclosure requirements.
References
Press release on the adoption of the CSRD: https://www.europarl.europa.eu/news/en/press-room/20221107IPR49611/sustainable-economy-parliament-adopts-new-reporting-rules-for-multinationals
https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en
Harvard Law School analysis: https://corpgov.law.harvard.edu/2022/08/23/eu-corporate-sustainability-reporting-directive-what-do-companies-need-to-know/
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Iron Mountain Data Centers are in the vanguard of the clean energy transition: they not only run their facilities on 100% renewable energy, they are working towards a more ambitious goal, powering them with carbon-free energy 24/7.
In this episode, host Lincoln Payton dives deep into decarbonization with Chris Pennington, Director of Energy and Sustainability at Iron Mountain Data Centers, to understand the more ambitious goal, and how Iron Mountain is using hourly energy and carbon data as the foundation to match supply with consumption and help the company meet its emission goals.
Key Takeaways
Why the future of decarbonization is moving away from annual market-based accounting methodology to hourly location-based accounting More granular data is key to understanding facilitiesâ load and matching it in near-real time to available clean energy sources Why adopting a long-term clean energy and decarbonization strategy serves both the climate and Iron Mountainâs bottom lineResources
What is 24/7 Carbon-Free Energy & Why It Matters -
Hydrogen is used as a heat source, a fuel or a feedstock in a range of industries⊠but depending on how itâs made, it can be a boon or hazard to our climate. Shifting to zero-carbon âgreen hydrogenâ - produced using renewable energy sources like solar and wind - is critical for using hydrogen as a decarbonization resource, so much so that both the United States and European Union have passed legislation and targets aimed at quickly growing hydrogen adoption.
But making sure hydrogen production is indeed green is complicated, and the choices we make today will have big impacts on how quickly hydrogen use grows, and how much it helps or hurts the climate challenge in the process.
In this Energy Minute, Dana Dohse and Steven Goldman explore the complex world of hydrogen and the efforts to ensure its production is sustainable and decarbonized. They discuss the challenges of transitioning from grey to green hydrogen, the debate over how incentives should be structured to avoid decarbonizing the grid, and some of the ways hydrogen fits into the overarching goal of decarbonizing heavy industries.
Key Takeaways
The most common type of hydrogen produced today is âgrey hydrogen,â made by heating and reacting methane to break its carbon and hydrogen bonds, creating carbon emissions in the process. âBlue hydrogenâ is made by capturing and storing the resulting carbon emissions in geologic formations like caverns, or built storage facilities under high pressure. If captured and stored properly, that process can abate about 90% of emissions associated with making grey hydrogen.
The key accelerator of green hydrogen projects in the United States is the Section 45V Production Tax Credit passed as part of the Inflation Reduction Act legislation. The 45V tax credit is a scaling tax credit tied to lifecycle hydrogen emissions through the point of production, based on how much lower the emissions from hydrogen production are relative to grey hydrogen. The highest tax credit level is set at $3 per kilogram of hydrogen, but how production qualifies is yet to be finalized by the U.S. Treasury..
The hydrogen âcolor wheelâ refers to the different colors used to represent different methods and energy inputs for producing hydrogen. Grey hydrogen is produced by breaking natural gas; black and brown hydrogen respectively by converting different types of coal into syngas, then breaking that like natural gas; turquoise hydrogen by breaking natural gas and producing hydrogen and solid carbon through pyrolysis; green hydrogen by powering an electrolyzer with renewable energy to split water; and pink hydrogen by powering an electrolyzer with nuclear energy to split water.
The framework that a coalition of renewables and electrolyzer developers, midstream companies, think tanks, academics and nonprofits have advocated for calls for three principles: 1) additionality, requiring electrolyzers to draw power from new sources of clean electricity brought online as a direct result of that electrolyzerâs construction; 2) deliverability, requiring that electrolyzers use local sources of clean electricity that are physically deliverable to the electrolyzer site; and 3) time-matching, requiring that electrolyzers run at the same time as clean electricity generation.
References
IEA report, âThe Future of Hydrogenâ
Renewable Thermal Collaborative report, âGreen Hydrogen Technical Assessmentâ
Energy Innovation research note, âSmart Design of 45V Hydrogen Production Tax Credit Will Reduce Emissions and Grow the Industryâ
Natural Resources Defense Council blog post, âSuccess of IRA Hydrogen Tax Credit Hinges on IRS and DOEâ
Spectra, âEurope Sets Rules for Producing Green Hydrogenâ
Green Hydrogen Catapult
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Investing in infrastructure is different and more complex than many other investment classes, often involving significantly longer timeframes and larger capital expenditures. Investing in sustainable infrastructure â like renewable energy, energy storage, or electric vehicle fleets â can be attractive to investors but adds complexity and often requires delivering with newer technologies.
Generate Capital was founded in 2014 with an unusual approach: invest, operate and maintain a range of sustainable infrastructure assets for the long term â creating âsustainable infrastructure as a serviceâ â that can provide extended value to investors and customers while yielding lasting environmental, social, and economic benefits.
Nam Nguyen, Chief Operating Officer of Generate Capital and a visionary leader in the clean energy sector, joins Lincoln on the podcast to talk about how she and Generate Capitalâs team are creating long-term impacts with strategic investments in the sustainable energy, e-mobility, waste and smart cities sectors.
Key Takeaways:
When Generate examines an investment opportunity, they view it through the lens of a long-term asset owner, looking at impacts and returns across 20, 30, or 40 years. Therefore, when looking at the opportunities, they are also looking for drivers that are going to factor in for the long term. In addition, they are looking at how to optimize assets and facilities so that they are lasting for a long time.
Generateâs investment strategy isnât limited to clean energy. Part of their portfolio is a platform called Generate Upcycle, which is focused on the circular economyâkeeping waste streams out of landfills, and turning that waste into something more renewable, whether it's in the form of renewable electricity, renewable natural gas, compost or other uses.
Generateâs team has a problem-solving mindset, because markets change quickly and the world is always evolving. Because of this, Generateâs team look at issues, like grid instability in California, and regularly sit down with the companyâs partners to ask, âhow do we solve for this? How do we change the way we utilize the assets weâve built to address fresh concerns? How do we optimize portfolios in different parts of our customer base?â
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In time for Earth Day, Dana Dohse and Steven Goldman are joined by a special guest to talk about how to begin your journey into the ESG or sustainability career field. Over the past year, weâve seen a âgreen waveâ of skilled workers looking to shift to roles focused on sustainability or ESG issue areas, either at their current company or at a new one, or taking their talents from Big Tech to Climate Tech companies.
Mike Hower, a sustainability expert with an unconventional career trajectory, has been helping companies to report out and tell stories about their ESG and sustainability impacts in roles across the last 15 years. Mike recently founded Hower Impact, his own sustainability communications consultancy, and Impact Hired, a platform aimed at helping people find impact jobs â while making it easier for companies to find the experienced hires they need to achieve their sustainability ambitions.
In this episode, he joins Dana and Steven to dig into how professionals can transition their existing skills into sustainability and ESG-focused work, the unique challenges and strategies faced when hiring ESG professionals, how the growing climate tech is creating new opportunities, and how those already in ESG roles need to stay ahead of future regulatory requirements for ESG reporting and adoption.
Key Takeaways:
Nobody has perfect experience in the sustainability sector - even if you have deep experience in one sector, shifting to a new one usually requires a fresh learning curve on the specific issues that sector faces. But those shifts are possible, requiring you to master the story you have to tell around your experience and how it translates between industries. When pursuing an ESG or sustainability career, make sure to focus on your soft skills - communications, ability to advocate for new initiatives, working across a range of teams - as much as technical knowledge. Become a lifelong learner if you arenât already, because this space is changing so fast. Even if you recently got a degree or finished a certification, regulations and standards continually change, and you need to stay on top of relevant areas for your sector. A career in sustainability takes grit and optimism - there are lots of learning curves, failures or setbacks along the way. Itâs a constant - but rewarding - battle as you work to solve problems and get the right initiatives in place to meet your organizationâs sustainability goals.Resources:
Environmental Defense Fundâs Degrees podcast curated an excellent Green Jobs Hub for jobseekers; Broader green job boards include Kristy Drutmanâs Green Jobs Board, Green Jobs Network and GreenBizâ Sustainability Jobs board, and Ed Carleyâs Clean Energy & Sustainability Jobs email list on Substack; Specifically climate tech focused job sites include Climatebase, Climate Draft, MCJ Collective, Terra.do and Climate Tech VC - note that many of these also offer focused networking, office hours with experts, events, and in some cases training or fellowships; Check out the #DayInTheLife series on OpenDoorClimate to better understand what actual skills climate professionals use in their jobs (spoiler: most are non-technical skills); Get real-world skills and experience through a fellowship like EDF Climate Corps or the Clean Energy Leadership Institute; sustainability career coach Trish Kenlon curated a list of 18 fellowships to consider; Trish also put together a comprehensive list of certifications or degree paths if youâre considering further education; Lastly, look at the hashtag #opendoorclimate on LinkedIn to find sustainability professionals offering an open-door policy. -
When it comes to decarbonization, local governments have a twofold role to play: reducing the impacts of their own operations, which can be broader than one thinks depending on the footprint of county services; then in supporting the ecosystem of public, private and stakeholder groups like NGOs in growing impacts within the region.
In this episode, Lincoln is joined by Lisa Lin, who currently serves as the Director of Sustainability for Harris County, Texas, the third-largest county in the United States and home to Houston. Lisa discusses the role of driving behavior change in reducing greenhouse gas emissions, how the county is pursuing renewable energy and energy storage to create jobs and add resilience as much as curb emissions, how the county is growing its âsolar-readyâ status through the SolSmart program, and how her team is collaborating with both private companies and other local governments to enhance sustainability efforts.
With a background in architecture and a passion for green building, Lisa has played a crucial role in shaping sustainability initiatives for local governments across central Texas for the last 12 years. Her journey began assisting the city of Houston with its Green Office Challenge, and eventually led her to leading sustainability programs for three local governments (San Antonio, Houston and now Harris County) and Rice University. As Harris Countyâs first Director of Sustainability for Harris County, Lisa has been instrumental in crafting Harris Countyâs first Climate Action Plan, which includes energy conservation measures, renewable energy projects, and transportation demand management programs.
Key Takeaways:
A key goal for Harris County is to reduce reliance on grid power through two targets: securing a 50-100 megawatt power purchase agreement and developing up to 20 megawatts of solar and 10 megawatt-hours of battery storage projects at county facilities. The county plans to site these projects to support community centers or other facilities that can serve as âresilience hubs,â protecting critical services and providing powered shelter in case of extreme weather. The Inflation Reduction Act tax credits have created a range of opportunities for counties and cities to invest more heavily in renewable energy, electric vehicle deployment or clean fuel projects. The county recently conducted a series of community meetings with its precincts to see what critical assets or sites should be prioritized so they can work to leverage the new federal funding and incentives. Harris County recently achieved the Silver designation in the U.S. Department of Energyâs SolSmart program - a free series of trainings and resources available to towns, cities, MPOs, and regional organizations to break down barriers to solar adoption.Resources:
Harris County's Climate Action Plan for Internal Operations - aims to cut greenhouse gas emissions 40% by 2030 compared to the base year of 2021 The Sunnyside Landfill Solar Project mentioned by Lisa - 52 MW of utility-scale solar being built on a local, 240-acre former landfill site that has limited reuse potential; will include 2 MW of community solar, as well as 150 MW of battery storage and an Agricultural Hub and Training Center The SolSmart program - provided by the U.S. Department of Energy, to help towns, cities, MPOs and regional organizations get âsolar-readyâ and support solar deployment in their areas The federal Greenhouse Gas Reduction Fund - competitive grant program administered by the U.S. Environmental Protection Agency, funds that must be disbursed by 9/30/2024 The [National Community Solar Partnership](https://www.energy.gov/communitysolar/about-national-community-solar-partnership#:~:text=The National Community Solar Partnership (NCSP) is a coalition of,increased resilience and workforce development.), run by the U.S. Department of Energy - the programâs goal is to enable community solar systems to power the equivalent of five million households by 2025 and create $1 billion in energy savings for subscribers Urban Sustainability Directors Network -
In this Energy Minute, Dana Dohse and Steven Goldman discuss the importance of examining the marginal impact of different energy sources - using principles like additionality and emissionality - and why businesses may want to consider them in during clean energy procurement processes. Some of the worldâs biggest tech companies, including Amazon, Apple, Microsoft, Meta, and others are looking hard at their energy procurement through one of these lenses, with different outcomes in mind for the facilities they power or the grids they operate on.
In this segment, Dana and Steven look at the concepts of additionality and emissionality, and what they each mean for companies evaluating whether to procure clean energy through financial instruments like RECs or virtual power purchase agreements or working to directly source that power through physical PPAs or local green power/tariff programs.
Resources:
Nature Climate Change journal article, "Renewable energy certificates threaten the integrity of corporate science-based targets"Key Takeaways:
Once it is generated for transmission and delivery, all electricity fundamentally is identical - you can't distinguish between electrons. RECs are a financial construct that allows the environmental value of clean energy generated to be bought and sold, either bundled with the energy being sold or separately (âunbundledâ). Additionality value refers to when purchasing clean energy is contributing to new capacity being added to the grid, rather than purchasing clean energy from a project that has already been in operation. For an offtaker, focusing on additionality means purchasing clean energy in ways that drive deployment of new projects in general Emissionality value refers to purchasing clean energy from projects that are have lower marginal emissions compared to the local average emissions factor, in effect reducing emissions on the local grid by becoming part of the local mix. For an offtaker, focusing on emissionality means procuring from projects that have carbon reduction impacts on the grid in which your facilities are operating. -
To decarbonize the world, ensuring all homeowners and communities can play a role in adopting clean energy is critical. Under the Biden Administrationâs Justice40 initiative, the U.S. federal government is directing 40 percent of certain funds and programs at helping low-income and historically excluded communities scale up renewables and energy storage locally.
Why those communities? Because low-income households typically have higher energy burdens - meaning they pay a larger amount of their income to their utility bill than the majority of other households.
Nicole Steele serves as a Senior Advisor for two federal agencies in key areas - leading programs like the National Community Solar Partnership at the U.S. Department of Energy and guiding deployment of the $27 billion Greenhouse Gas Reduction Fund at the Environmental Protection Agency. Across her career, she has been working to bring clean energy deployment into low-income communities, to grow their use of clean energy and reduce their energy costs, and train new additions to the solar power workforce in the process.
In this episode, Nicole shares stories and experiences with Lincoln from the frontline of these efforts - including the range of instruments helping make it happen like financing products and community solar subscriptions - and how we can all play our part.
Key Takeaways:
The Inflation Reduction Act created a huge pool of resources to help communities adopt clean energy, but the EPA is continuing to fine-tune the approach to make sure communities most in need are being heard and made aware of opportunities. To do that, the EPA has already held a nationwide RFI process and continues to hold town hall listening sessions to ensure communities can discuss their needs. The goal of $7 billion of the Greenhouse Gas Reduction Fund is to deploy residential or community solar and/or storage in disadvantaged and low-income communities. This is part the administration's goal to make the building sector decarbonized by 2035, and the economy by 2050. Programs at both the EPA and DOE are part of the Justice40 initiative - the product of an executive order requiring that a minimum of 40% of the benefits of certain programs flow to disadvantaged communities.Resources:
GRID Alternatives, the organization Nicole led in the mid-Atlantic region The Climate and Economic Justice Screening Tool - a geospatial mapping tool developed for the Justice40 initiative to identify disadvantaged communities that are marginalized, underserved, and overburdened by pollution The Disadvantaged Communities Reporter - a Department of Energy mapping tool intended to allow users to explore and produce reports on census tracts DOE has categorized as disadvantaged communities -
Today, discussions on decarbonization are focused about what we need to build - more clean energy assets, more electric vehicles, more hydrogen and EV-charging infrastructure, more new efficient buildings or software and equipment to make older building more efficient. But a soon-to-be-huge issue thatâs emerging is waste - retired solar panels, wind turbines and blades, batteries from electric vehicles and energy storage - and what to do with it all.
In this Energy Minute, co-hosts Dana Dohse and Steven Goldman pull back the lens and take a broader look at the challenges of end-of-life materials pose to the clean energy transition, and how a mix of startups, local governments and heavy industrial companies are finding ways to reuse, repurpose and recycle solar panels, wind blades and turbines and batteries. They provide insights on some of the early efforts - and big funding rounds - underway to close the loop on materials in the clean energy supply chain.
Key Takeaways:
New recycling technology has the potential to separate out the elements that are caught up in the âhash,â such as silicon, polysilicon, and silver. Those materials are expected to become more valuable over time due to virgin material shortages and supply chain bottlenecks. The cumulative mass of decommissioned wind turbine blades in the U.S. will reach 1.5 million metric tons by 2040 and 2.2 million tons by 2050. The largest blades being deployed today - turning to power 15-megawatt offshore wind turbines - are over 350 feet long, roughly the length of a football field, so keeping them from taking up landfill space is critical for communities. A recent partnership between the Environmental Solutions and Services division of Veolia North America, an energy, water, and waste company, and GE Renewables to build a recycling program has already turned 2,000 of these giant blades into an alternative valuable commodity, which is cement.Resources:
Organizations mentioned in this show: SOLARCYCLE, Veolia North America, Carbon Rivers, Global Fiberglass Solutions, Ascend Elements, Redwood Materials, Li-Cycle The Renewable Energy Laboratory wind turbine study: https://www.nrel.gov/news/program/2021/nrel-research-identifies-motivations-methods-for-achieving-a-circular-economy-for-wind-energy.html Article on Veolia partnering with GE for renewable energy blades: https://www.veolia.com/en/news/united-states-veolia-makes-cement-and-gives-second-life-ge-renewable-energys-wind-turbine - Laat meer zien
