Monday, April 4, 2022

👀 Revealing climate debate

Plus: Latest on Ukraine | Monday, April 04, 2022
 
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Presented By Ericsson
 
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By Ben Geman and Andrew Freedman ·Apr 04, 2022

🐣 Good morning! Today's Smart Brevity count is 1,065 words, 4 minutes. 

🚨 Tomorrow is Axios' first What's Next Summit! Register for virtual sessions with the CEO of GM, a top White House climate adviser and more.

🔍 Today is a big climate science news day, watch the Axios website for coverage.

 
 
1 big thing: Debate over pivotal climate report breaks record

Illustration: Aïda Amer/Axios

 

An agenda-driving United Nations climate report is about to drop that will lay out pathways toward a lower-carbon, more resilient and less perilous future, Andrew writes.

The intrigue: It was supposed to surface hours ago, but negotiations between UN Intergovernmental Panel on Climate Change (IPCC) scientists and the panel's government representatives blew way past their deadline.

And that's revealing. Countries were mired in battles over how to wordsmith key conclusions, including the need to quickly shift away from fossil fuels, and the necessary policy, financial assistance and technological levers to pull to accomplish this.

  • The heated discussion — the longest in three decades of these big IPCC reports — reflected the fact that we are at a climate change hinge point.

Why it matters: The IPCC's assessment reports set the terms of the climate debate with world leaders, CEOs and activists. A 2018 report galvanized a global youth protest movement.

  • There is no time left to delay action to have any chance of meeting the Paris Agreement's temperature targets. The agreement's more ambitious target of limiting warming to 1.5°C above preindustrial levels is already slipping out of reach.

Context: The report's expected call for radical changes is a huge departure from current policies and ways of doing business worldwide.

  • While scientists determine the content of the reports, the summaries are negotiated by consensus between scientists and policymakers. One country's objection to a single word can hold up the entire process.
  • In this case, multiple countries were reported to have raised issues with different sections of the text.
  • The combo of scientists and government representatives is unique to the IPCC and serves to encourage government buy-in.
  • The summary for policymakers is what most people in power will read. This is another reason for the word-by-word approval process, conducted via Zoom due to pandemic-related restrictions. (Screenshots of co-authors' faces during the debate, via IISD and Columbia's Andrew Revkin, suggest what these sessions were like.)

What we're watching: Previously released IPCC reports in the past year, part of the same broader 2021-2022 assessment, starkly laid out how swiftly the globe is warming, with the effects evident from the deep sea to the tallest mountain peaks.

  • They also established the case for making changes that are transformational in how we live.
  • Now the new, third chapter will spell out our options in unprecedented detail, calling for rapid and drastic emissions cuts well beyond what any country is close to accomplishing, along with the development of as yet unproven climate tech such as direct air capture.
  • The report may warn that such technologies are as yet unproven at scale and may have significant downsides.

The bottom line: The emissions trends and policies being put into place right now are either the exact opposite of what this report will recommend (a push for more oil and gas drilling) or in some cases just don't go nearly far enough (voluntary emissions reduction pledges).

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Bonus: White House climate tally
In this illustration, a large price tag dangles from a black and white still image of the earth.

Illustration: Lazaro Gamio/Axios

 

Reuters has the scoop on a pending White House report that tries to game out how climate change will affect federal finances.

The big picture: "The Office of Management and Budget assessment, tasked by President Joe Biden last May, found the upper range of climate change's hit to the budget by the end of the century could total 7.1% annual revenue loss, equal to $2 trillion a year in today's dollars."

Keep reading.

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2. Catch up fast on Russia's war

Oil markets: "Oil slipped on Monday in volatile trading as the release of strategic reserves by consuming nations eased concerns over tight supply amid Russia's invasion of Ukraine and the lack of an Iranian nuclear deal." (Reuters)

  • ICYMI: International Energy Agency member nations plan new oil releases from strategic stockpiles to complement U.S. plans, which call for roughly 1 million barrels per day from the Strategic Petroleum Reserve for six months.
  • Yes, but: The amount of those other nations' planned releases remains unclear. Friday's IEA statement is light on detail.

LNG: "China's top liquefied natural gas importers are cautiously looking to purchase additional Russian shipments that have been shunned by the market in a bid to take advantage of cheap prices." (Bloomberg)

Breaking up: "Lithuania says it has cut itself off entirely of gas imports from Russia, apparently becoming the first of the European Union's 27 nations using Russian gas to break its energy dependence upon Moscow." (Associated Press)

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A message from Ericsson

How accelerating 5G deployment can enable climate action
 
 

Research finds ICT solutions can enable a reduction of global carbon emissions by up to 15% by 2030.

Okay, but: To realize its full potential, the sector needs to accelerate the deployment of 5G networks and use modern technologies to take climate action.

Learn more about 5G's impact.

 
 
3. What direct air capture can achieve (in theory)
Chart showing growth of direct air capture in IEA's net-zero emissions pathway

Image via the International Energy Agency

 

There's growing financial and policy momentum behind direct air capture tech that pulls CO2 from the atmosphere, a new International Energy Agency report finds, Ben writes.

Yes, but: There's a long way to go before the tech, which is only in nascent stages of deployment, can play a meaningful role in combating climate change.

  • IEA's net-zero emissions roadmap envisions DAC capturing over 85 million metric tons of CO2 in 2030 and around 980 million in 2050.
  • That would require an immense scale-up and lower costs. The amount captured today? 0.01 million.

Why it matters: Carbon removal methods including DAC are needed to complement the steep emissions cuts to keep the Paris Agreement goals from slipping away.

State of play: The bipartisan infrastructure provides $3.5 billion for developing U.S. DAC "hubs" to demonstrate the tech.

Also, some companies are already selling CO2 removal credits based on future deployment, and DAC startups are attracting VC investment.

What's next: The report offers recommendations to speed-up global deployment beyond the facilities operating and those that are planned.

They include more government financial backing, but also steps to identify CO2 storage locations, develop standardized certification and accounting, and more.

Go deeper.

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4. Tesla ships more cars despite supply woes
Data: Company reports; Chart: Axios Visuals

Tesla's Q1 vehicle deliveries climbed slightly to a new record even as the electric automaker said "ongoing supply chain challenges and factory shutdowns" hindered output, Ben writes.

Why it matters: Wedbush Securities analyst Dan Ives, in a note, called the numbers "better than feared" in light of the COVID factory shutdown in China and "massive logistics complications delivering units to customers in Europe."

Go deeper.

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5. Quote of the day
"It's very easy to look at what Tesla has done and say this is the formula, if you have the Tesla DNA, the Tesla mojo, you are going to succeed. But Tesla is unique in what it has done; just because Tesla did it, it's not a guarantee that others can replicate its strategy."
Credit Suisse auto analyst Dan Levy

The big picture: Levy's quote sums up this in-depth Financial Times look at how EV startups are struggling to get their manufacturing operations up to speed.

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A message from Ericsson

How 5G and modern tech can help achieve global climate goals
 
 

Ericsson introduces an innovative approach for securing network energy efficiency, including four key elements:

  • Prepare the network.
  • Activate energy-saving software.
  • Build 5G with precision.
  • Operate site infrastructure intelligently.
 
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