2023 PESA business environment review

Only a few homes in the US have demonstrated net zero energy performance over a full year. Of the successful net zero energy projects for detached single-family homes, most have been newly constructed, rather than retrofits. A cost-effective retrofit strategy for single-family homes could expand net zero options to a broader segment of the housing stock, a segment with a relatively high energy consumption per household. Also, most net zero energy projects are limited to the structures on the property, and are focused on energy, rather than greenhouse gas (GHG), primarily carbon dioxide (CO2) emissions. Expanding the scope to incorporate not only energy from structures, but also a household's CO2 emissions from structures and vehicles would enable the evaluation of strategies to reduce all Scope 1 and 2 emissions. These are the emissions that a household has direct control over, namely the direct combustion or emission of CO2 and the emissions caused by the household's use of electricity.One family's net zero project in Washington, DC, aims to demonstrate cost-effective attainment of annual zero net CO2 emissions not only from the retrofitted home itself, but from the household's two vehicles. In this way, the household will lower its net Scope 1 and 2 emissions to zero. The project's house-related energy reduction investments to date consist of a ground source heat pump, solar hot water, spray foam insulation, lighting upgrades, new windows, programmable thermostats, and other energy efficiency retrofits. These investments and activities have resulted in 65% reduced energy consumption and 32% reduction in house-related CO2 emissions (before taking into account on-site solar generation). Over the course of a year, the total house-related energy consumption of 33 million British thermal units (MMBtu) (mostly electricity with some natural gas for cooking) was lower than the 36 MMBtu electricity generated by the 9.8 kW of roof-mounted solar photovoltaic (PV) panels.To reduce the household's net Scope 1 and 2 GHG emissions to zero, vehicle-related CO2 emissions also were addressed in the project. Excess electricity generation from the PV panels is used to offset electricity required to power an electric vehicle for daily commuting requirements (up to 8,000 miles annually). A second vehicle is primarily fueled by biodiesel and used for longer trips.By August 2014, four years after the project began, the project had demonstrated that for certain markets, commercially available energy technologies can enable a suburban single-family detached house to be cost-effectively retrofitted and operated to achieve net positive GHG emissions. The household achieved a year of net zero house-related electricity, energy, and emissions in October, 2013, possibly becoming the first home to achieve that distinction in the District of Columbia. For the 12 months to September, 2014, combined net building and vehicle (Scope 1 and 2) CO2 emissions of 1.9 MT was 86% less than annual building and vehicle emissions prior to the project of approximately 13.6 MT CO2. The household is expected to have demonstrated 12 months of net zero emissions for the home and two vehicles (Scope 1 and 2) in 2015.The project also demonstrates a process for determining a combination of energy saving technologies with potential to reduce emissions sharply, possibly up to net zero overall household emissions, at a relatively low cost and impact to occupants.The family that carried out the project funded the project at its own expense, without any sponsorship or support other than government incentives available to the general public. Total energy related investments after state and federal incentives are approximately $85,000. The family expect to see a complete return on these energy investments in 10 years.

The net zero emissions policy represents a crucial component of the global initiative to address climate change. The European Union has set a target of achieving net zero greenhouse gas emissions by 2050. This study assesses Poland’s feasibility of achieving net zero emissions. Currently, Poland relies on fossil fuels for approximately 71% of its electricity generation, with electricity accounting for only approximately 16% of the country’s total final energy consumption. Accordingly, the transition to net zero carbon emissions will necessitate significant modifications to the energy system, particularly in the industrial, transport, and heating sectors. As this is a long-term process, this article demonstrates how the development of renewable energy sources will progressively necessitate the utilisation of electrolysers in line with the ongoing industrial transformation. A new framework for the energy system up to 2060 is presented, with transition phases in 2030, 2040, and 2050. This study demonstrates that it is feasible to attain a sustainable, zero-emission, and stable energy system despite reliance on uncontrolled and weather-dependent energy sources. Preparing the electricity grid to transmit almost three times the current amount represents a significant challenge. The resulting simulation capacities, comprising 64 GW of onshore wind, 33 GW of offshore wind, 136 GW of photovoltaic, 10 GW of nuclear, and 22 GW of electrolysers, enable a positive net energy balance to be achieved under the weather conditions observed between 2015 and 2023. To guarantee system stability, electrolysers must operate within a centralised framework, functioning as centrally controlled dispatchable load units.

Carbon Dioxide Removal is essential for achieving net zero emissions, as it is required to neutralize any residual CO2 emissions. The scientifically recognized definition of Carbon Dioxide Removal requires removed atmospheric CO2 to be stored “durably”; however, it remains unclear what is meant by durably, and interpretations have varied from decades to millennia. Using a reduced-complexity climate model, here we examined the effect of Carbon Dioxide Removal with varying CO2 storage durations. We found that storage duration substantially affects whether net zero emissions achieve the desired temperature outcomes. With a typical 100-year storage duration, net zero CO2 emissions with 6 GtCO2 per year residual emissions result in an additional warming of 0.8 °C by 2500 compared to permanent storage, thus putting the internationally agreed temperature limits at risk. Our findings suggest that a CO2 storage period of less than 1000 years is insufficient for neutralizing remaining fossil CO2 emissions under net zero emissions. These results reinforce the principle that credible neutralization claims using Carbon Dioxide Removal in a net zero framework require balancing emissions with removals of similar atmospheric residence time and storage reservoir, e.g., geological or biogenic.

Are development and decarbonization conflicting or complementary goals? In this report, we explore how Latin America and the Caribbean can improve socioeconomic and development outcomes while also reaching net-zero greenhouse gas emissions by 2050. Specifically, we introduce SiSePuede, an open source decarbonization modeling toolkit that evaluates decarbonization actions costs, benefits, and emissions reductions across the economy. We find that maximizing actions could achieve net-zero emissions in the region before 2050 and net $2.7 trillion in benefits compared to more traditional development. Benefits include massive fuel cost savings; avoided costs from reduced air pollution, congestion, and car crashes; and the value of ecosystem services from forests. Although there are many paths to net-zero emissions, three actions are critical: producing electricity with renewables, electrifying transport, and protecting and restoring forests by halting deforestation and shifting food-production patterns. Economy-wide strategies that implement these actions at scale can reduce emissions dramatically and net enormous benefits to the region even amid deep uncertainties, with a median of $1 trillion in net benefits across all scenarios. These benefits are unevenly distributed across sectors and actors, and across time, so realizing them and ensuring a just transition to net zero requires governments to overcome important financing, regulatory, infrastructure, and other barriers. Each country must tailor its own strategy to address development and emissions goals based on local priorities, capabilities, resources, and technical capacity. SiSePuede provides a robust analytical foundation to support these efforts.

The challenge facing society in the 21st century is to improve the quality of life for all citizens in an egalitarian way, providing sufficient food, shelter, energy, and other resources for a healthy meaningful life, while at the same time decarbonizing anthropogenic activity to provide a safe global climate, limiting temperature rise to well-below 2°C with the aim of limiting the temperature increase to no more than 1.5°C. To do this, the world must achieve net zero greenhouse gas (GHG) emissions by 2050. Currently spreading wealth and health across the globe is dependent on growing the GDP of all countries, driven by the use of energy, which until recently has mostly been derived from fossil fuel. Recently, some countries have decoupled their GDP growth and greenhouse gas emissions through a rapid increase in low carbon energy generation. Considering the current level of energy consumption and projected implementation rates of low carbon energy production, a considerable quantity of fossil fuels is projected to be used to fill the gap, and to avoid emissions of GHG and close the gap between the 1.5°C carbon budget and projected emissions, carbon capture and storage (CCS) on an industrial scale will be required. In addition, the IPCC estimate that large-scale GHG removal from the atmosphere is required to limit warming to below 2°C using technologies such as Bioenergy CCS and direct carbon capture with CCS to achieve climate safety. In this paper, we estimate the amount of carbon dioxide that will have to be captured and stored, the storage volume, technology, and infrastructure required to achieve the energy consumption projections with net zero GHG emissions by 2050. We conclude that the oil and gas production industry alone has the geological and engineering expertise and global reach to find the geological storage structures and build the facilities, pipelines, and wells required. Here, we consider why and how oil and gas companies will need to morph from hydrocarbon production enterprises into net zero emission energy and carbon dioxide storage enterprises, decommission facilities only after CCS, and thus be economically sustainable businesses in the long term, by diversifying in and developing this new industry.

Bottlenecks of LNG supply chain in energy transition: A case study of China using system dynamics simulation

This book provides useful insight into how academics from diverse disciplinary backgrounds, such as science, engineering, technology, social science, policy, design, architecture, built environment, business, and management, have been conducting research into how to realise net zero emissions to address climate change. This book explores the ways in which countries around the world have pledged to achieve net zero emissions through decarbonisation processes. It presents the highest calibre research and impact activities carried out in the UK, Europe, North America, Australia, Asia, and Africa. Such activities include conceptualisation, opportunity identification, specific case studies, demonstration of proof of concepts, provision of evidence, education of the general public, and knowledge transfer to companies. Further to this, the chapters also bring to light personal career journeys to net zero by current and future international research leaders. From this book, readers will gain a full understanding of net zero research via multiple disciplinary pathways, be inspired by personal accounts, and will learn key methodologies, including quantitative and qualitative approaches. The diversity of authors and topics make the book widely applicable to a range of fields, and it will be of great interest to researchers, students, practitioners, and decision makers working towards the goals of net zero and decarbonisation.

_ Liquefied natural gas (LNG) has been in global energy supply discussions for decades. Geopolitical tensions, however, recently elevated it from a bullet point to the entire conversation. Rarely does a day pass without mention of signed long-term LNG purchase agreements or LNG terminal construction projects advancing, one day making it possible to transport the curiously cold molecules across oceans to eventually power industries or heat homes. So strong are the fundamentals of the LNG industry, for example, that they were cited as a primary driver in the conversion of one of the largest pure-play US-listed shipping companies—Capital Product Partners led by Greek shipowner Evangelos Marinakis—to a pure-play LNG shipping company. In addition to changing its name to Capital New Energy Carriers, the partnership is selling off its modern fleet of 15 Neo-Panamax and Panamax container vessels. It will spend $3.13 billion to purchase 11 newbuild LNG carriers (LNGC). According to an announcement on 13 November, the first of the new vessels arrived in October 2023. The company already had seven LNG carriers in its fleet, with the remaining 10 newbuild vessels scheduled for delivery through March 2027. Jerry Kalogiratos, chief executive of Capital Product Partners, said the acquisition was transformative, noting that the partnership “expects our contracted revenues to increase by 87% percent to $3.1 billion, our revenue weighted charter duration to 7.2 years as of the closing date, and the average age of our LNG fleet to decrease to 3.2 years by the time all LNGCs have been delivered in 2027.” LNG Market Overview Events like the Russian invasion of Ukraine in February 2022 and the sudden loss of Russian pipeline gas supplies upended global energy markets. European buyers turned to LNG imports to meet demand. According to Wood Mackenzie, the current conflict in Israel/Gaza, possible pipeline sabotage in the Baltics, and the threat of fresh strike action at Australian LNG facilities all pushed spot prices up 35% through October. In a November blog post, Wood Mackenzie noted that a record 200 mtpa of new supply is under construction as “players bet big on Asia’s push to reduce its dependence on coal and Europe’s need to replace Russian gas.” While the proliferation of LNG projects is prompting concerns that there may be too much LNG on the market once these projects are completed, this is not the case, according to Wood Mackenzie. “Increased supply availability will bring prices down and boost demand growth,” said Gavin Thompson, vice chair of Europe, Middle East, and Africa, and Massimo Di Odoardo, vice president, gas and LNG research for Wood Mackenzie, noting that the market will need another 60 mtpa of new LNG by 2033. “Much will hinge on sustained economic growth, driving increased demand across emerging markets in Asia. China’s LNG demand will increase by 12% in 2023, and with 50 mtpa of LNG contracted over the past 2 years, imports will double by 2030. LNG demand in South and Southeast Asia will also grow twofold by this time,” they said.

The global energy transition is characterized by a shift from fossil fuels such as coal, oil, and natural gas to cleaner and more sustainable energy sources. It is emphasized that hydrogen energy has significant potential for the development of innovative business, international trade, and energy transition for a sustainable post-carbon future. Currently, most hydrogen is consumed locally, without significant volumes of interstate supplies. It is noted that the development of this market faces many technical challenges, including high costs of producing “green” hydrogen, technical difficulties with the infrastructure for its transportation and storage due to low density, and the need to create large-scale infrastructure. Demand for hydrogen is growing as it plays a key role in decarbonization and greenhouse gas emissions reduction, especially in heavy industry, transportation, and energy systems. In the short term, hydrogen trade will likely occur mainly between neighboring countries through pipelines, limiting the scope of international trade until cost-reducing technologies are developed. In the long term, as demand for green hydrogen grows, especially in Europe and Asia, the trend toward active trade in this resource will gradually change. According to the most optimistic forecasts, the global hydrogen market will gradually grow until 2030, and the volume of international hydrogen trade may reach 120 million tons per year. It has been theorized that hydrogen is becoming increasingly important in the global energy system, and the geopolitics of energy trade will inevitably change. Energy geopolitics has traditionally been dominated by fossil fuel exporters such as the Middle East and Russia. However, the transition to hydrogen has the potential to decentralize energy production, making countries with rich renewable energy resources, such as the Persian Gulf, North Africa, and parts of Europe, key players in the new hydrogen market. This underscores the importance of developing international hydrogen supply chains, particularly from regions rich in renewable energy sources, such as North Africa, the Middle East, and Australia. Institutional support for the energy transition for a sustainable post-carbon future is implemented at the global and macro levels. At the global level, through a system of rules and regulations for the international market, international trade agreements and customs regulation, and international coordination on the implementation of hydrogen quality and safety standards. At the macro level, through government institutions, regulatory frameworks, and hydrogen economy development strategies, which have already become an integral part of the energy plans of many countries seeking to achieve carbon neutrality, reduce greenhouse gas emissions, and improve energy security. It is substantiated that the hydrogen market will face a difficult path related to solving technical and economic issues. However, thanks to the development of innovative business and technological innovations, support from governments, private investors, and various stakeholder groups, this sector has a great chance to become a key player in the future energy landscape, playing an important role in the decarbonization of the global economy. Keywords: innovative business, institutional support, energy transition, hydrogen, global hydrogen economy, energy geopolitics, decarbonization, sustainable development, sustainable post-carbon future, green transition, green investments, technological innovation, international trade, emissions trading system, regulation, strategic interests, economic interests, strategy of hydrogen use for energy, energy strategy, strategizing the hydrogen economy, country strategies, global development triggers, trade policy, environmental policy, international trade agreements, customs regulation, international trade.

This article examines the role of trust – as a sensory mode of knowing and engaging in everyday environments – in generating community-based routes toward sustainable futures in a culturally diverse situation. To do this we outline a theory of trust and apply trust as a conceptual frame for understanding international students’ relationships to their everyday environments. We focus on how trust can participate in carving new pathways to net zero carbon emissions, in processes whereby decolonization and decarbonization become interwoven trajectories. In doing so, we draw on ethnographic research undertaken with culturally diverse local and international students and staff on a university campus committed to working toward net zero emissions. Treating such sites as living labs for investigating how net zero comes about simultaneously demonstrates and surfaces the role of sensory and embodied modes of trust and engagement in this process. Thus, we argue that trust and the sensory knowing it entails offer a conceptual and practical prism with applications across community initiatives.

This study reviews Soft Landings (SL) implementations, focusing on its role in achieving Low and Net Zero Emission (LZE) buildings and reducing the energy performance gap. With buildings contributing significantly to global carbon emissions, it is crucial to understand the effect of integrating approaches like SL for meeting Net Zero goals. Notably, this research identified that the extended 3-year aftercare phase of SL does not always lead to reduced operational carbon emissions. While SL promotes collaboration and structured delivery, its overall impact on consistently achieving LZE buildings remains unclear, largely due to insufficient in-use performance data. The paper advocates for integrating SL with other performance-based methods, emphasising the need for enhanced industry collaboration and data sharing to augment the understanding and effectiveness of SL in delivering LZE buildings. Practical Application: This paper offers a thorough analysis of the Soft Landings (SL) framework in achieving Low and Net Zero Emission (LZE) buildings. It examines barriers at each project lifecycle stage and evaluates SL’s effectiveness through case studies, revealing inconsistencies in reducing operational emissions. The findings emphasise integrating SL with performance-based initiatives and enhancing industry collaboration and data sharing. Built environment professionals can leverage these insights to improve project delivery, optimise building performance, and achieve LZE goals more effectively.

The Net Zero pathway is critical for the sustainability and life quality on Earth, yet the decarbonization efforts will not come for free. In this paper, the in-depth investigation of all the applicable decarbonization levers for Asset-M has been investigated. Worth to mention that Asset-M is the second Largest Asset for Oil production in Petroleum Development Oman (PDO), which is located to the East region of Dhofar in the South of the Sultanate of Oman. The work presented here will illustrate the decarbonization cost for the different projects from a qualitative screening point of view. PDO as the main oil and gas producer in the Sultanate of Oman has pledged to reduce its Source 1 & 2 emissions by 50% in 2030 and to achieve net zero emissions by 2050. A mission that is not only difficult with the current available technologies but also very expensive and require a lot of funding and collaboration between the different research and governmental entities. The first step in this decarbonization exercise was to pinpoint the sources of emissions, for Asset M these are mainly characterized in Flaring, Power consumption, Fuel gas for crude processing and other emissions associated to the infrastructure such as stationary combustion, transportation and fugitives. A benchmark exercise was conducted to understand the cost of the different technologies capable to decarbonize Asset-M based on the different sources available. A Marginal Abatement Cost Curve (MACC) analysis was used to screen the different decarbonization levers from a comparison point of view. The analysis does illustrate options with viable commerciality yet for those options which appear noneconomical it does highlight the cost of Carbon per ton needed for the projects to fly either through government tax credit or other type of subsides. It is clear from the MACC analysis conducted based on global benchmark data of Renewables, batteries cost, gas and oil prices and others; that the decarbonization towards net zero emission will not come for free. Billions of Dollars will have to be spent for two main good reasons: The technology cost is still high due to the current level of maturity and scale (e.g. CCUS, Hydrogen, Renewables, batteries and more) Carbon is still not taxed in many countries and hence the attitude of the Oil and Gas industry is yet to pick up the momentum and urgency to accelerate new technologies trials which will help in unlocking more sustainable but economical solutions for decarbonization. The information presented here will be published for the first time specially when it comes to the potential of Carbon cost escalation if net Zero emission pathway is mandated, and under any circumstance, Decarbonization will not come for Free.

Although Africa contributes less than 5% to global greenhouse gas (GHG) emissions, its role in global climate action is pivotal. To date, 53 African countries have submitted their Nationally Determined Contributions (NDCs), and four have committed to a net-zero target. However, many of Africa's NDCs are vaguely expressed and without specific focus on explicit sectoral decarbonization targets. Furthermore, Africa's huge land-based carbon dioxide removal (CDR) potential remains unclear in the context of enabling net-zero (NZ) emissions within the continent. This study achieves two objectives: Under a NZ GHG emission trajectory in Africa, we uncover the implications of a targeted zero-emission electricity sector by 2030, on the energy landscape and other sustainability factors. This study also features the role of land-based biological removal methods─bioenergy carbon capture and storage (BECCS) and afforestation/reforestation (A/R)─in net zero actualization in Africa. Our results reveal a unified but disparate actualisation of the mid-century net zero emission goal across the continent, as all regions except North Africa achieve carbon neutrality. The industrial sector faces significant difficulties in transitioning and contributes substantially to positive emissions on the continent, with its share of total residual emissions reaching 49-64% by 2050. This difficulty persists even with targeted sectoral decarbonization of the electricity sector, although it is significantly reduced by the availability of BECCS as a CDR option. Under the zero-emission electricity pathway, emissions in buildings and transport sectors are reduced due to rapid electrification. A trade-off emerges in the net zero pathway concerning land allocation for negative emissions versus other land use activities. A key result shows that achieving a net zero target in Africa leads to a cumulative loss of $102 billion in fossil fuel infrastructure within the electricity sector by mid-century, which doubles when the zero-emission electricity goal is achieved.

Most nations are shifting towards renewable energy sources to reduce energy-related emissions and achieve their net zero emissions targets by mid-century. Consequently, many attempts have been made to invest in clean, accessible, inexpensive, sustainable and reliable renewable energy sources while reducing dependency on fossil fuels. Recently, the production of biogas and upgrading it to produce biomethane is considered a sustainable way to reduce emissions from natural gas consumption. However, uncertainties in the biomass supply chain and less attention to decarbonising the natural gas grid have led to fewer investors in biomethane injection projects. Thus, researchers have applied Geographic Information System (GIS) as the best decision-making tool with spatial analytical and optimisation capabilities to address this issue. This study aims to review GIS-based applications on planning and optimising the biomass supply chain. Accordingly, this review covers different GIS-based biomass assessment methods with the evaluation of feedstock types, GIS-based approaches on selecting and optimising bioenergy plant locations and GIS-based applications on facilitating biomethane injection projects. This review identified four major biomass assessment approaches: Administrative division-based, location-based, cluster-based and grid-based. Sustainability criteria involved in site selection were also discussed, along with suitability and optimality techniques. Most of the optimising studies investigated cost optimisation based on a single objective. However, optimising the whole supply chain, including all operational components of the biomass supply chain, is still seldom investigated. Furthermore, it was found that most studies focus on site selection and logistics, neglecting biomethane process optimisation.

This study analyzed Bank Mandiri’s position in the political economy of Indonesian banking, emphasizing the possibility of greenwashing in the offering of green loans and sustainability-linked loans. As of June 2024, Bank Mandiri possessed a sustainable portfolio worth IDR 278 trillion. The bank’s green portfolio grew by 20.4% annually to IDR 139 trillion. This study adopted a qualitative method by analyzing Bank Mandiri’s annual financial reports from 2020 to 2024, public policies, and online news media coverage to evaluate its alignment with the net-zero emission (NZE) 2060 commitment. The findings unveiled that although funds have been allocated to renewable energy projects such as hydro and geothermal, most funds remained flowing into sectors with high environmental risks, such as the development of smelters that rely on fossil fuels, contradicting the NZE goals. Bank Mandiri’s ESG program has not yet met all crucial sustainability standards, indicating the presence of greenwashing practices. Indonesia does not possess mandatory sustainability reporting standards, but it has encouraged reporting based on global standards, such as GRI and the newly adopted IFRS standards. This study emphasizes the significance of greater transparency and government oversight to ensure that green financing truly benefits the environment and is not merely a marketing strategy. The novelty of this research lies in the lack of studies conducted on the financing policies provided by Mandiri Bank. This study analyzed Bank Mandiri’s position in the political economy of Indonesian banking, emphasizing the possibility of greenwashing in the offering of green loans and sustainability-linked loans. As of June 2024, Bank Mandiri possessed a sustainable portfolio worth IDR 278 trillion. The bank’s green portfolio grew by 20.4% annually to IDR 139 trillion. This study adopted a qualitative method by analyzing Bank Mandiri’s annual financial reports from 2020 to 2024, public policies, and online news media coverage to evaluate its alignment with the net-zero emission (NZE) 2060 commitment. The findings unveiled that although funds have been allocated to renewable energy projects such as hydro and geothermal, most funds remained flowing into sectors with high environmental risks, such as the development of smelters that rely on fossil fuels, contradicting the NZE goals. Bank Mandiri’s ESG program has not yet met all crucial sustainability standards, indicating the presence of greenwashing practices. Indonesia does not possess mandatory sustainability reporting standards, but it has encouraged reporting based on global standards, such as GRI and the newly adopted IFRS standards. This study emphasizes the significance of greater transparency and government oversight to ensure that green financing truly benefits the environment and is not merely a marketing strategy. The novelty of this research lies in the lack of studies conducted on the financing policies provided by Mandiri Bank.