Sustainability watch: record temperatures, marine biodiversity and renewable investment

Brazil state-run oil firm Petrobras will use the 175,000 carbon credits it purchased last month to render carbon neutral around a year's worth supply of its premium gasoline. Petrobras made its first ever carbon credit purchase in September, as part of broader push to become more sustainable. It bought 175,000 carbon credits from Projeto Envira Amazonia in the Amazon rainforest, it said at the time, adding it plans to spend at least USD 120 mn in carbon credits by 2027. The premium fuel represents about 1% of sales to customers at gas stations supplied by Vibra, Petrobras' main distributor, which has exclusive rights to sell Podium.

Three US states in New England - Massachusetts, Rhode Island and Connecticut - agreed to jointly procure offshore wind power in response to soaring interest rates and rising equipment and labour costs. By joining forces, the states hope to counter the pain rippling across the nascent US offshore wind industry, which is expected to play a key part in decarbonising the power sector and revitalising domestic manufacturing.

BP launched its first plant processing renewable gas from landfill since its USD 4 bn acquisition of the largest US biogas producer Archaea Energy in December 2022. The renewable natural gas (RNG) plant can process 3,200 cubic feet of landfill gas per minute (scfm) into RNG – enough gas to heat around 13,026 homes annually, BP said. Landfill gas, a natural by-product of the decomposition of waste, is a form of greenhouse gas. The plant captures gas and converts it to electricity, heat or renewable natural gas. The plant's technology is modular, meaning it can be replicated and deployed faster than previous technologies, BP said. 

The largest-ever US state investment in renewable energy to date has been announced. New York Governor Kathy Hochul unveiled a series of awards for 6.4 GW of renewable energy projects, including 3 major offshore wind and 22 land-based projects. When completed, the projects are anticipated to generate enough electricity to power more than 2.5 million homes, deliver 12% of New York’s energy needs, and reduce greenhouse gas (GHG) emissions by 9.4 million metric tons annually. The new awards also bring New York’s operating, contracted, and under development renewable energy projects to a capacity sufficient to supply 79% of the state’s electricity needs by 2030, well ahead of its mandatory goal to have 70% of electricity provided by renewable sources by that time. The projects will also contribute to the state’s path to achieve a zero-emission electricity sector by 2040, and economywide carbon neutrality by mid-century.

The European Commission announced that is has officially launched an anti-subsidy investigation on imported electric vehicles (EVs) from China, after finding that a surge in heavily subsidised EVs posed a threat to the EU’s automotive industry. The investigation follows months of pressure from France on the Commission to initiate an anti-dumping probe against EV companies in China, although other countries such as Germany have warned that the move could spark a trade war. EU Commission Ursula von der Leyen announced plans for the investigation last month in her State of the European Union (SOTEU) speech, in which she said that “global markets are now flooded with cheaper Chinese electric cars,” with prices that are being kept artificially low through “huge state subsidies” that are distorting the market.

Malaysian state oil company Petronas and Japan's second-biggest oil refiner Idemitsu Kosan signed a preliminary agreement to collaborate on development and distribution of sustainable aviation fuel, the companies said. They will focus on a feasibility study to "scale-up bio feedstock possibilities, production cost analysis and security in ensuring a steady and efficient supply chain for the sustainable development of sustainable aviation fuel", they said in a statement. The two companies will also aim to establish a sales and distribution network to ensure accessibility to airlines, they added.

Ireland has the potential to develop a sustainable aviation fuel (SAF) industry generating revenue of EUR 2.55 bn by 2050 and providing up to 1,000 high-skilled jobs. Ireland’s Sustainable Aviation Fuel Opportunity is a new study that was launched by the Minister for Enterprise, Trade and Employment, Simon Coveney TD, and looks at the key role SAF will play in helping the aviation industry achieve its net zero goal by 2050. IATA estimates that SAF, which can be used to replace traditional jet fuel, will deliver over 60% of the contribution needed to reduce aviation emissions to reach net zero by 2050. The European Union’s ReFuelEU initiative obligates fuel suppliers to blend SAF into the fuel available at all EU airports, rising from 6% SAF by 2030, to 70% by 2050. To meet EU mandated SAF volumes alone, Ireland will require approximately 10 SAF plants of 80 kilo tonnes production capacity each. This would create an Irish SAF sector generating revenue of EUR 2.55 bn per annum and could provide up to 1,000 high-skilled jobs in direct and indirect employment. Further export opportunities could significantly increase these numbers.

A EUR 100/month electric vehicle (EV) leasing scheme is to be introduced in France from November as part of the country’s climate action strategy, French President Emmanuel Macron announced, though only EU-made cars will be eligible. Macron said he wants to “give people access to electric cars made in Europe.” This is a measure to protect French carmakers from competition from Chinese brands, which have been gaining significant market share in the EU in recent years. The new EV leasing scheme is part of a broader government strategy to cut greenhouse gas emissions by 55% by 2030. France has also committed to producing over one million EVs by the end of Macron’s term in office in 2027. The scheme is expected to begin with a few tens of thousands of cars in 2024, but it is expected to grow in size and scope in future years. To be eligible for the scheme, cars must also comply with France’s revisited “green bonus” rules, which provide cash incentives to first-time EV buyers if overall car production emissions remain under a certain threshold.

Brussels is weighing a further delay to proposals to limit harmful chemicals and microplastics amid growing hostility to climate regulation from industry and right-wing politicians. The European Commission’s tabling of proposals for the new version of the Reach regulation on the sale and use of chemicals, which will affect substances used in semiconductors and a range of other products, could now be shelved until after EU-wide elections next June, said people briefed on the situation. The timetable for announcing the proposals had already been shifted from last year to this. The plans would mark the first step in changing rules that would then have to be negotiated by member states and the European parliament. The current rules are vastly complex and took seven years to negotiate.

Coca-Cola India announced the launch of Coca-Cola in 100% recycled plastic (rPET) bottles in its smaller pack sizes, including 250 ml and 750 ml bottles. The new recycled plastic bottles are manufactured by Coca-Cola bottling partners Moon Beverages, and SLMG Beverages, and are made from 100% food-grade rPET, excluding caps and labels. The bottles also a carry a “Recycle Me Again” call to action and a “100% recycled PET bottle” display aimed at driving consumer awareness. The Coca-Cola Company now offers 100% recycled plastic bottles in over 40 markets, bringing it closer to its World Without Waste goal of making bottles with 50% recycled content by 2030. Announced in 2018, the sustainable packaging platform also includes a goal to collect and recycle the equivalent of a bottle or can for every one the company sells globally by 2030, and to make 100% of its packaging recyclable by 2025.