Headline: RIFS Blog

The availability of renewable energy is an important factor for future investment decisions in the chemical and steel industry. This is a key finding of our survey of 300 decision-makers from the chemical and steel industry. 92 per cent of the respondents anticipate that their company will relocate facilities as it seeks to decarbonize production. In addition to low-cost renewable energies, the respondents identify political support as a key factor in investment location decisions.

On 1 October 2023, the EU’s Carbon Border Adjustment Mechanism (CBAM) entered into effect, beginning with a transitional phase that will run through to 2026. This provides a two-year learning phase during which stakeholders, including the European Commission, can gradually adjust to the new terms of trading established by the CBAM, a cross-border carbon pricing mechanism targeting imports of carbon-intensive products.

In their decarbonisation journey, European countries have so far focused on policies to dramatically increase the share of renewables and improve energy efficiency across diverse sectors, including industry, construction and housing. However, it has become clear that renewables alone will not enable the industrial sector to achieve its decarbonisation goals, as a large share of the carbon dioxide emissions from industry are emitted during manufacturing processes. Emerging technologies for carbon capture and storage (CCS) and carbon capture and utilisation (CCU) as well as hydrogen (H2) are currently being explored as the most promising solutions.

As governments across the world decarbonize their economies, the shift toward clean energy is highlighting new geopolitical tensions, supply chain vulnerabilities, and sustainability challenges associated with raw material extraction. With electrification as the main pathway to achieving decarbonization, one key technology—the battery—plays an outsize role in this shift. As the lithium-ion battery is currently the dominant technology for electric vehicles and stationary energy storage, exponential growth in critical mineral mining is required to meet demand. The International Energy Agency projects that the metals industry would need to build 50 new lithium mines, 60 nickel mines, and 17 cobalt mines by 2030 to meet global demand in line with national emissions-reduction pledges.

A visit to the ACHEMA 2022 trade fair for process industries has strengthened my conviction that dialogue between the business sector, science, politics and society will be crucial to achieving our climate goals.

Russia’s invasion of Ukraine has intensified European policymakers’ interest in developing energy trade relations with Canada, as the former is seeking to identify reliable partners to swiftly diversify its fossil fuel imports.

To take stock of industry’s real-world experience with digitalization to date and the expectations that exist with regard to sustainability impacts, the research group “Digitalisation and Sustainability Transformations” conducted an international study in China, Brazil, and Germany. Their results clearly show that the moderate gains made thanks to digitalization lag far behind the high hopes that many hold for it.

The Covid-19 pandemic gives us a glimpse of what climate change has in store for us concerning our globalized economic system. More research is needed to help us better understand these complex interconnections and to translate such insights into instruments to support decision-making.

The EU's pending Batteries Regulation is an ambitious framework to impose strict sustainability standards on the technology most important to electrification. To secure access to the lucrative EU market, global battery manufacturers will need to clean up their supply chains. US policymakers should take heed.

On November 17, the European Commission proposed a regulation on deforestation-free products. This initiative is groundbreaking in that it tackles legal deforestation next to illegal. What does this legislative proposal mean for commodity-producing countries? In the case of Brazil, effective regulations will depend on a combination of trade, financial, technological, and cooperative measures.

The Nigerian government and German energy company Siemens AG signed the Nigerian Electrification Roadmap (NER) partnership, also known as the Presidential Power Initiative (PPI) in 2019. The Roadmap contains technical and commercial proposals for financing, implementing, and executing projects to revive the Nigerian power sector and manage Nigeria’s future electricity requirements.

It may sound like a paradox but it is possible to grow the economy without raising GDP, if we widen the definition of the economy to take account of human wellbeing and nature, says IASS Affiliate Scholar Christian Felber, the founder of the Economy for the Common Good.

The digital transformation is in full swing, touching economies around the world. This far-reaching transformation is distinguished by three change processes affecting value creation models, information flows and resource flows – the latter two will be examined more closely in this post.

"The Packaging Act of 2019 is already having an effect here [on recycling]. But there is still far too much packaging waste in Germany. More than half of all plastic waste is disposable packaging, and that really bothers many citizens, and it really bothers me personally", remarked Minister of the Environment Svenja Schulze on the latest amendment to Germany’s Packaging Act (the Verpackungsgesetz).

Brazilian geographer Bertha Becker referred to the Amazon region as the oldest periphery of the capitalist world system. Its colonial occupation, or 'frontier economy', is based on the continuous incorporation of available land and the exploitation of their resources – both of which are regarded as infinite. This perspective on the Amazon has existed for centuries and continues to loom large in Brazil today. To meet its growing demand for raw materials, the outside world assumed the rainforest to be of little value, discounting the services that it provides to humankind. This view encourages the rainforest’s destruction and is not sustainable. A model for the sustainable development of the Amazon region is feasible however and could play an important role in Brazil's post-pandemic economic recovery efforts.

Countries have responded differently to the large societal and economic impacts of the Covid-19 pandemic. While some view the crisis as a window of opportunity for new technologies and approaches to achieve climate neutrality, others will be tempted to reinforce their dependence on old technologies, leading to a carbon lock-in. Israel’s response as a start-up nation is promising, but further measures are needed to support a green transition.