Carbon Markets

Cop28 ended in achievement and relief, tinged with some disappointments. The final text twice mentions “hard-to-abate” sectors, usually considered to include vital but carbon-intensive heavy industries such as steel, cement and aluminium.

A limited amount of carbon capture, hydrogen and nuclear power are used in the “hard-to-abate” sectors, such as heavy industry, for long-duration reliable electricity supply, and to supply chemical fuels for long-distance shipping and aviation.

Adnoc has reported that it emitted 24 million tonnes from its upstream operations last year. It aims to reduce operational intensity – emissions per barrel of oil or cubic foot of gas – by 25 per cent by 2030, from what is already one of the lowest levels globally.

The global steel industry accounts for 8–10 % of global CO2 emissions and requires deep decarbonisation for achieving the targets set in the Paris Agreement. However, no low-emission primary steel production technology has yet been commercially feasible or deployed.

Achieving net-zero climate targets requires some level of carbon dioxide removal. Current assessments focus on tonnes of CO2 removed, without specifying what form these removals will take. Here, we show that countries’ climate pledges require approximately 1 (0.9–1.1) billion ha of land for removals.

A recent paper ‘Nature-Based Credit Markets at a Crossroads’ published in Nature Sustainability (2024), provides a noteworthy perspective on scientific validity in relation to nature-based credit markets.

The European Green Deal (EGD), introduced by the European Commission in 2019, stands as a monumental initiative in Europe’s journey toward a more sustainable future.

The Nature paper, ‘A prudent planetary limit for geologic carbon storage’, was authored by a group of heavyweight climate scientists, mostly from European universities and research institutions. It applies several limitations on subsurface carbon dioxide storage, calculating that this reduces possible storage from estimates of 10,000-40,000 gigatonnes in the scientific literature, to about 1,460 gigatonnes.

TINA is not just a name: it is a slogan and an investment strategy. There Is No Alternative (TINA) is a guide when the options before us look unappetising but necessary. And the same applies to energy technologies, particularly the unloved quartet of nuclear power, carbon capture and storage (CCS), carbon dioxide removal, and hydrogen.

The 28th edition of the United Nations Climate Change Conference (COP28) that opens in Dubai, United Arab Emirates (UAE), on November 30 has brought the usual flurry of diplomatic preparation—heightened this year by a surge in global temperatures and an outbreak of massive wildfires and extreme weather.