Raja Shazrin Shah Raja Ehsan Shah’s Post

The number of countries that have announced some type of commitment to net zero emissions has increased very rapidly in recent years, from five in 2018 to over 145 in 2023. Middle and low-income countries must therefore consider policies to both grow and decarbonize their power sectors. A growing number of them are considering carbon pricing instruments (CPIs). However, the path to implementing carbon pricing is fraught with challenges, including financing obstacles, the urgent need to boost supply, and social priorities different from those of more advanced economies with more carbon pricing experience. This report delves deep into the power sector value chain dynamics, demonstrating how well-designed carbon pricing instruments can be instrumental in helping countries reach their decarbonization goals. Focusing on how decisions are made in diverse power sector models in several developing countries, this report establishes that the CPI must be carefully positioned at the right regulation point in the power sector’s value chain—rather than merely adding a burden for the sector. Getting it right can influence everything from power generation options to investment decisions and customers’ behaviors. https://lnkd.in/g5WGeHgz.

Carbon pricing in the power sector - Role and design for transitioning towards net-zero carbon development Electricity is the lifeline for a modern economy. At the same time, the power sector is the world’s main source of greenhouse gas emissions. Limiting the worst effects of a changing climate requires that the supply of clean electricity grows rapidly. This presents challenges as the power sector is technologically complex and requires costly infrastructure development. The sector is also highly regulated and dependent on domestic natural resources and fluctuating international commodity markets. For policymakers, carbon pricing stands out as one of the most potent tools available to reduce emissions in the power sector. The EU and the UK are prime examples of how carbon taxes and cap-and-trade systems can help significantly advance the decarbonization of the power sector. However, the path to implementing carbon pricing in low- and middle-income countries is fraught with challenges, including financing obstacles, the urgent need to boost supply, and social priorities different from those of more advanced economies with more carbon pricing experience. Predictable carbon pricing can help attract private sector investment in cleaner technologies. In capital-intensive sectors like the power sector, both investors and policymakers need long-term plans for decarbonization based on clear and credible communication on carbon price evolution. #Carbonpricing #Carbonfootprint #Decarbonization #ClimateactionNow #ClimateChange

𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗘𝗾𝘂𝗶𝘁𝘆 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗥𝗶𝘀𝗸𝘀: 𝗦𝗰𝗼𝗿𝗲𝗰𝗮𝗿𝗱 𝟮𝟬𝟮𝟰 Private equity continues to transform the #financialmarkets and the daily lives of communities around the globe. With over a trillion dollars in energy investments generating high #greenhousegas emissions and minimal public visibility, #privateequity firms play an outsized role in accelerating the #climatecrisis. New research for this edition of the #scorecard reveals just how high the industry’s #fossilfuel emissions are. The private equity #energy portfolios covered in this report are responsible for an estimated, combined total of 1.17 gigatons of annual #emissions. This figure equals 1.17 billion metric tons CO2 equivalent (#CO2e) and is limited to the three categories covered in the scope of this research: 🔴 #upstream, 🔴 liquefied natural gas (#LNG) terminals, and, 🔴 #coal plants, and do not represent the firms’ entire emissions footprint from energy #investments. In the #US alone, there were 28 weather and climate disasters in 2023, resulting in at least $92.9 billion in disaster damages, according to the National Centers for Environmental Information. The need for transparency, accountability, and a just transition to a #cleanenergy economy has never been more urgent. This #report was researched, written, and edited jointly by researchers at Americans for Financial Reform #EducationFund, Global Energy Monitor, and Private Equity Stakeholder Project. These organizations form the Private Equity Climate Risks research team (#PECR). #Researchers: Dustin Duong | Aditi Sen | Oscar Valdes Viera | Alexander Hurley | Alyssa Moore | Nichole Heil | Amanda Mendoza | Alissa Jean Schafer, M.S.

The global economy must take bold action to cut greenhouse gas emissions, with CO2 requiring a 46% reduction by 2030. This transition demands moving away from fossil fuels to renewable energy, advancing electrification and energy efficiency, reducing land clearing, scaling carbon removal technologies, and implementing carbon pricing—all essential steps to achieving a sustainable, low-carbon economy. Our newly released Practical Guide to 1.5°C Scenarios for Financial Users empowers the financial sector to navigate this transformation, equipping institutions to support and finance the shift to a net-zero future while addressing the urgent need for emissions reduction. Download the report here: https://ow.ly/BgVi50UL6A3

Enclosed is the Report for Carbon Pricing in the Power Sector, developed by the The World Bank, International Energy Agency (IEA), and International Carbon Action Partnership (ICAP), examines the intricacies of the power sector's value chain and underscores how effectively designed carbon pricing can facilitate decarbonization in developing countries. It highlights the necessity of strategically positioning carbon pricing within regulatory frameworks to ensure it enhances, rather than burdens, the sector. By influencing investment decisions and consumer behavior positively, carbon pricing can drive progress toward sustainability. Countries like China, Colombia, and South Africa are beginning to leverage carbon pricing to address impacts on low-income populations while transitioning their energy-intensive industries. The report also presents a comprehensive analysis of the challenges faced by low- and middle-income countries (#LICs and #MICs) in their power sector decarbonization efforts. It identifies obstacles related to generation and storage, market structure, dispatch procedures, and economic governance. By exploring these challenges, the report aims to inform policymakers about the various factors that need consideration when implementing carbon pricing as a tool for decarbonization. Additionally, the report offers valuable lessons and recommendations for policymakers, emphasizing the importance of tailoring carbon pricing instruments to the specific contexts of #LICs and #MICs. It suggests that the design of carbon pricing mechanisms should consider the diverse power sector structures and the political economy challenges these countries face. By learning from the experiences of various nations, the report serves as a guide to help create a sustainable, reliable power sector that effectively integrates carbon pricing to achieve decarbonization goals. See the below documents for your perusal.

The U.S. Department of the Treasury, U.S. Department of Energy (DOE) and USDA have released the "Voluntary Carbon Markets (VCM) Joint Policy Statement and Principles." High-integrity VCM carbon credits can help companies cut emissions by helping finance #renewables and other #decarbonization projects. They are particularly important for funding innovation in #carbonremoval technologies. These principles include: • Carbon credits and the activities that generate them should meet credible atmospheric integrity standards and represent real decarbonization. • Credit-generating activities should avoid environmental and social harm and should, where applicable, support co-benefits and transparent and inclusive benefits-sharing. • Corporate buyers that use credits should prioritize measurable emissions reductions within their own value chains. • Credit users should publicly disclose the nature of purchased and retired credits. • Public claims by credit users should accurately reflect the climate impact of retired credits and should only rely on credits that meet high integrity standards. • Market participants should contribute to efforts that improve market integrity. • Policymakers and market participants should facilitate efficient market participation and seek to lower transaction costs. Download it here: https://lnkd.in/eXWRWZxT #sustainability #alternativeenergy #greentech #renewableenergy #circulareconomy #cleanenergy #energytransition #IRA #CO2 #carbon #CCS #CCUS https://lnkd.in/eFhUemnw

“There are decades where nothing happens and there are weeks where decades happen”, This last week in Toronto #PRIInPerson2024, big announcements by the Canadian deputy prime minister and minister of finance #ChrystiaFreeland and other honorable participants were made. Here are some key takeaways:   1- “There is no economic transformation as big as the one we need to bring today”, said the minister of finance. The federal government is investing over $160 billion in its net-zero economic plan, including through Canada Growth Fund with 15 billion, and a $93 billion suite of tax credits for investments in Carbon capture, utilization, and storage; Clean technology; Clean hydrogen; Clean technology manufacturing; Clean electricity; and EV supply chains. 2- The Canadian federal government intention to amend the Canada Business Corporations Act (CBCA) to require climate-related financial disclosures for large, federally incorporated private companies. This could help direct investment flow toward the transition. There will be no obligations for SME for now. There will be voluntary tools for SME to help them fulfill climate disclosures. 3- A plan to deliver the long-awaited Canadian Green Taxonomy. The Taxonomy will work on a voluntary basis and would include green and transition investments. Priority sectors are electricity, transportation, buildings, forestry, manufacturing, and extractive industries. Transition activities are decarbonizing emission-intensive activities that are essential to sectoral transformation and consistent with a net zero pathway such as installing electric furnaces to produce steel. Green activities are low emitting activities such as hydrogen, solar or wind energy generation and those that enable them such as electricity transmission lines and hydrogen pipelines. 4- Coal phase out – Countries announcements and global emissions UK is the first country to be completely off coal. After more than 140 years, the last thermal coal plant in the U.K. has closed as it shifts towards greener, renewable energy. Coal-fired power plants need to be phased out everywhere by 2040 if we have to achieve the Paris agreement. Canada has committed to phasing out thermal coal by 2030. Although 2023 has set a new record for global coal consumption mainly due to China newly added coal fired power capacity, there is still an optimistic sentiment that it could trend downwards soon. Globally, coal fired power plants account for 1/3 of global emissions and should be retired 4 times faster than the current rate to meet climate goals. 5- NZDPU (Net Zero Data Public Utility) database to be launched in the second half of 2025 with 10000 companies and their climate commitments and plans. At the conference, Canada has clearly demonstrated leadership, pursuit of a greener future and devotion to #sustainablefinance. At #Triasima, we are committed to transforming these great ideas into real-world actions. #sustainablefinance #ESG #climatechange

Reflecting on the Interim Balance Report 2023, we find both cause for celebration and a call to action. The report reveals a significant milestone: a 7.3% reduction in national energy-related emissions compared to previous years, marking the lowest level witnessed in three decades. This achievement underscores the efficacy of concerted efforts towards sustainability across sectors. However, amidst these gains, a sobering reality emerges: our current pace falls short of aligning with targeted emission reduction trajectories. Despite commendable progress, the urgency to accelerate our transition to a low-carbon economy has never been more pronounced. The Interim Balance Report serves as a critical compass, guiding us towards a future characterized by resilience and environmental stewardship. It underscores the imperative for robust policy frameworks, investment in renewable energy infrastructure, and innovative solutions to drive systemic change. #Climeaction #InterimBalanceReport #BetterFuture #RenewableEnergy #EmissionsReduction

The truth about the over-hyped and exploited "green initiatives" is finally coming to light, as common sense begins to prevail. While climate change is undeniable, the misguided, wasteful pathways many leaders have championed are now being questioned. The cracks in these initiatives—marked by inefficiency, rorting, and overreliance on subsidies—are impossible to ignore. The U.S. is paving the way for a much-needed course correction, rejecting blind adherence to flawed policies in favor of a more pragmatic, results-driven approach. It’s time to hold these initiatives accountable and demand solutions that genuinely balance environmental responsibility with economic reality.

Maximizing CO2 Sequestration: How the Inflation Reduction Act is Shaping the Future of Carbon Management The Inflation Reduction Act (IRA) is a game changer for the US’s carbon management strategy. One of its most impactful provisions is Section 45Q of the US Tax Code, which offers significant tax credits for CO2 sequestration and carbon capture technologies. Here's how the IRA is fueling progress: Key Credit Highlights under Section 45Q ·       $60/Tonne: For CO2 utilization or secure CO2 storage in oil fields through Enhanced Oil Recovery (EOR) from industrial and power generation facilities. ·       $85/Tonne: For CO2 storage in saline geologic formations from industrial and power generation facilities. ·       $130/Tonne: For CO2 utilization or secure CO2 storage in oil fields through Enhanced Oil Recovery (EOR) from Direct Air Capture (DAC) facilities. ·       $180/Tonne: For CO2 storage in saline geologic formations from Direct Air Capture (DAC) facilities. Why These Credits Matter ·       Encouraging Investment: These credits provide financial incentives for businesses to adopt carbon capture, utilization, and storage (CCUS) technologies. The higher the sequestration rates, especially from Direct Air Capture, the more lucrative the opportunities become. ·       Empowering Industrial Sectors: From power generation to industrial facilities, the IRA incentivizes carbon capture from hard-to-decarbonize sectors. The flexibility of the credit—whether for utilization in oil fields or secure storage in saline formations—makes it adaptable to various industries. ·       Paving the Way for DAC: Direct Air Capture (DAC) technologies, which are still in early stages, are particularly favored by the IRA due to their ability to pull CO2 directly from the atmosphere. The higher tax credits for DAC projects will accelerate their commercialization. The Global Impact International Opportunities: The IRA's approach to carbon sequestration will not only benefit US projects but will also influence the global market. As countries look to replicate these solutions, international investors and incubators will want to stay ahead of these trends. The IRA is laying the foundation for a carbon-neutral future, offering compelling incentives for industries to reduce emissions. #CarbonCapture #DirectAirCapture #CCUS #EnhancedOilRecovery #SalineGeologicStorage #CO2Sequestration #ClimateAction #NetZeroGreenBharat #CleanEnergy #SustainableFuture #CarbonHydrogenX #EnergyTransition