The panelists’ discussion conveyed that while the IRA represents a crucial and impactful step forward, realizing its full potential—for both the United States and the world at large—will be an ongoing process with numerous hurdles still ahead. Nuclear Energy Policy Initiative The Nuclear Energy Policy Initiative is the Atlantic Council’s dedicated home for the exploration of nuclear energy’s future. “Both our presidents are willing to invest a lot to keep transatlantic relationship,” said Kadri Simson, the European Commission’s commissioner for energy, as she brought a message of unity and optimism to close out the Atlantic Council 2023 Global Energy Forum. UkraineAlertUkraineAlert UkraineAlert is a comprehensive online publication that provides regular news and analysis on developments in Ukraine’s politics, economy, civil society, and culture. UkraineAlert sources analysis and commentary from a wide-array of thought-leaders, politicians, experts, and activists from Ukraine and the global community.
It faces competition from an expanding suite of technologies in each market it serves. To cap it off, the technologies the gas industry hopes will secure it a role in a future low-carbon economy either are laden with their own shortcomings, or are equally disruptive. Whatever new subsidies the administration hands out in spite of these opportunities should be contingent on oil and gas companies aligning their businesses with the goals of the Paris climate accord. One way to do that would be to require any companies that want to take advantage of new Export-Import Bank loan guarantees to identify and eliminate methane leaks across their supply chains. Among the quickest, easiest things the United States can do to furnish additional supplies to Europe is to reduce demand for fossil fuels domestically, freeing up more existing gas to go abroad while driving down domestic emissions. And Exxon Mobil-sponsored study from Princeton University finds that electrification efforts in line with President Biden’s own net-zero target could free up 20 billion cubic meters to 30 billion cubic meters of gas per year.
More from Foreign Policy
These zero-https://intuit-payroll.org/ technologies will displace gas that has been providing bulk generation, and will narrow the use case for natural gas to provide firm capacity. For instance, combined-cycle gas power plants’ share of electricity generation drops from 39% in 2019 to 10% by 2030 in BloombergNEF’s Economic Transition Scenario. Make up 5% of the installed capacity mix in 2030 but only 1% of generation. Globally, the renewal of investments in electricity network infrastructure, pumped hydro, geothermal and other such technologies, and the introduction of longer-duration storage further narrows the space where gas will play a role.
Indigenous and Kerry Warns Of Stranded Asset Risk From Natural Gas Buildout campaigners are also continuing to pressure the Biden administration to intervene and stop the construction of the Line 3 tar sands pipeline. Line 3 is being built in the U.S. state of Minnesota under Trump-issued permits despite ongoing protests, construction accidents, and pending lawsuits. Still, he noted that Richard Glick, who recently became FERC chairman under Biden, has dissented in the past on a number of LNG projects. LNG exporters would follow Cheniere’s lead, he said the sector’s “major image problem” is grounded in reality because of the level of flaring and venting happening in places like the Permian Basin. The Biden administration is wading into the issue as recent events underscore how different the political and industry dynamic is from when Obama took office more than a decade ago.
Investing in fossil fuels has now really become high-risk
New AtlanticistNew Atlanticist New Atlanticist is where top experts and policymakers at the Atlantic Council and beyond offer exclusive insight on the most pressing global challenges—and the United States’ role in addressing them alongside its allies and partners. Fast ThinkingFast Thinking When major global news breaks, the Atlantic Council’s experts have you covered—delivering their sharpest rapid insight and forward-looking analysis direct to your inbox. News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. “We have to decide how quickly we must have a requisite for abatement – maybe 10 years, eight years, who knows? But for the long run, gas is going to have to abate and live up to low emissions standards just like everybody else,” he said. The longer the war in Ukraine carries on, the worse the consequences will be for the climate, the US presidential envoy John Kerry has warned.
She added that she hopes to never have to trigger the newly developed natural gas pricing mechanism. LONDON— Royal Dutch Shell PLC bet big on natural gas as the energy source of the future when it bought BG Group for $54 billion. Newcomb lists electric and hydrogen vehicles, energy efficiency, and the potential for emission reductions by city and regional governments as areas where the IEA’s projections fall short. In what some analysts see as a serious gap in the IEA’s thinking, the scenario relies increasingly on emerging technologies as the middle of the century approaches.
India raises $400m green bond to fund renewables drive
Appliances such as ovens, boilers and heaters will similarly need to be hydrogen-ready versions. Consider the spending habits of companies purportedly invested in the energy transition. Last year, Exxon Mobil and Chevron committed just 0.16 and 2 percent of total capital expenditures, respectively, to low-carbon energy. Occidental Petroleum has sought to rebrand itself as a “carbon management” company, yet its chief executive, Vicki Hollub, has been fighting off her shareholders’ demands to set emissions reduction goals.
- Natural gas contributed some 22% of energy sector CO2 emissions in 2020, excluding process emissions, and its share is rising.
- Although some important fossil fuel investors are missing from the list of countries that signed the deal , this agreement will make it more difficult to finance new fossil fuel projects.
- However, for those countries that are heavily dependent on gas fired power this will still form a major part of the electricity mix while there is gas to burn, despite high prices.
- Paddy Padmanathan, vice-chairman and CEO of ACWA Power, which has a wide-ranging portfolio of projects in several developing countries, argued that the focus should be on the potential of renewable and emerging energies to power the future.
- Marisa Drew, chief sustainability officer at Standard Chartered Bank, described the need for unity and a frank discussion among all stakeholders on these very problems at the next United Nations Climate Change Conference, known as COP28, to unlock long-term, sustainable, and investable solutions.
- US LNG developers in recent years have encouraged steps such as Ex-Im credit support for potential buyers of long-term LNG contracts.