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The basic materials industries are a cornerstone of Europe's economic prosperity, increasing gross value added and providing around 2 million high-quality jobs. But they are also a major source of greenhouse gas emissions. Despite efficiency improvements, emissions from these industries were mostly constant for several years prior to the Covid-19 crisis and today account for 20 per cent of the EU's total greenhouse gas emissions.
A central question is therefore: How can the basic material industries in the EU become climate-neutral by 2050 while maintaining a strong position in a highly competitive global market? And how can these industries help the EU reach the higher 2030 climate target - a reduction of greenhouse gas emissions of at least 55 per cent relative to 1990 levels?
In the EU policy debate on the European Green Deal, many suppose that the basic materials industries can do little to achieve deep cuts in emissions by 2030. Beyond improvements to the efficiency of existing technologies, they assume that no further innovations will be feasible within that period. This study takes a different view. It shows that a more ambitious approach involving the early implementation of key low-carbon technologies and a Clean Industry Package is not just possible, but in fact necessary to safeguard global competitiveness.
The European Union (EU) has established that the goal of achieving climate neutrality by 2050 as a key driver of innovation and growth for industry and the economy in the EU. In addition to offering great opportunities, this also poses considerable challenges for the European economy and, for the most part, for basic industries, which are particularly emission-intensive and face strong international competition.
An integrated climate and industry strategy is of central importance to protecting the climate, since the production of steel, cement, basic chemicals, glass, paper, and other materials in the EU and worldwide accounts for roughly one fifth of total greenhouse gas emissions. Even in a greenhouse gas-neutral future, we will not be able to fully eliminate our need for these materials. At the same time, it is particularly challenging to produce these materials without creating emissions given the state of technology and the necessary infrastructures. This applies above all to the question of how large amounts of green energy, including electricity and hydrogen, can be produced at competitive prices. Analyses show that despite the considerable costs involved in process changeover, the costs of transforming the raw materials industry are acceptable to society as a whole, given that the additional costs usually only increase the price of the end products by a few percentage points. However, in the case of crude steel or cement, the price would increase by between one third and 100 per cent. Since almost all raw materials manufacturers face strong global market competition, in most cases they are not able to bankroll the investments in climate-neutral production and the required energy infrastructure without outside support.
This paper outlines an integrated climate industrial policy package that allows the EU to utilise its existing technological leadership in many of these industries to build a greenhouse gas-neutral raw materials industry.
The Port of Rotterdam is an important industrial cluster, comprising mainly oil refining, chemical production and power generation. In 2016, the port's industry accounted for 19% of the Netherlands' total CO2 emissions. The Port of Rotterdam Authority is aware that the cluster is heavily exposed to future decarbonisation policies, as most of its activities focus on trading, handling, converting and using fossil fuels. Based on a study for the Port Authority using a mixture of qualitative and quantitative methods, our article explores three pathways whereby the port's industry can maintain its strong position while significantly reducing its CO2 emissions and related risks by 2050. The pathways differ in terms of the EU's assumed climate change mitigation ambitions and the key technological choices made by the cluster's companies. The focus of the paper is on identifying key risks associated with each scenario and ways in which these could be mitigated.
On 26 January 2019, the Commission on Growth, Structural Change and Employment recommended that no more coal-fired power plants would be operated in Germany by 2038 at the latest. In this paper the Wuppertal Institute comments on the results of the Commission and makes recommendations for the current necessary steps for the climate and innovation policy in Europe, Germany and North Rhine-Westphalia.
Phasing out coal in the German energy sector : interdependencies, challenges and potential solutions
(2019)
Relevant aspects of the options and requirements for reducing and phasing out coal-fired power generation have been under debate for several years. This process has produced a range of strategies, analyses and arguments, outlining how coal use in the energy sector could be reduced and phased out in the planned time frame, and determining structural policy measures suitable to support this. This Coal Report studies the existing analyses and provides an overview of the state of debate. It is intended to provide information on facts and contexts, present the advantages and disadvantages of individual courses of action, and reveal the respective scientific backgrounds. It strives to take a scientific and independent approach, and present facts in concise language, making it easy to follow for readers who are not experts in the field, without excessive abridgements or provocative statements.
New options are needed to reduce the impact of motor vehicles on climate change and declining fossil fuel resources. Cars which are fueled by hydrogen could be a sustainable method of transportation if suitable technologies can be devised to produce hydrogen in an environmentally benign manner along with the provision of the necessary fueling infrastructure. This paper assesses size, space, and cost requirements of bioreactors as a decentralized option to supply hydrogen powered cars with biohydrogen produced from algae or cyanobacteria on a theoretical basis. Decentralized supply of biohydrogen could help to reduce the problems that hydrogen cars face regarding market penetration. A feasibility study for decentralized biohydrogen production is conducted, taking the quantity of hydrogen which is needed to fuel current hydrogen cars into account. While this technology is, in theory, feasible, sizes, and costs of such reactors are currently too high for widespread adoption. Thus, more R&D is needed to close the gap and to approach marketability.
This study intends to provide a comprehensive overview of the water-energy nexus' relevance to the Iranian electricity sector, by illustrating key trends, analysing water-related challenges and identifying knowledge gaps. It summarises the results of a workshop, and a series of dialogues with Iranian energy and water experts, in which both the current situation and future water-related risks and impacts on the Iranian power sector were discussed. Based on those results, it highlights research needs and further options for scientific collaboration.
The Port of Rotterdam is one of the pioneers in the reduction of greenhouse gas emissions. It is the largest port in Europe and extends over 40 kilometres to the North Sea coast. Its ambitious goal: the port wants to reduce greenhouse gas emissions from its industrial cluster as well as from freight traffic to a large extent. For the study "Deep Decarbonisation Pathways for Transport and Logistics Related to the Port of Rotterdam" the Wuppertal Institute analysed available options for the maritime as well was hinterland transports on behalf of the Rotterdam Port Authority.
The 2050 scenarios by the Wuppertal Institute show that decarbonisation will significantly change both, volume and structure of the transported goods - which add to the on-going trend from bulk to container transport. This will have considerable structural effects on port operations and in particular on hinterland traffic. A comprehensive decarbonisation (>95 per cent) will require significant efficiency improvements through operational and technical measures and the switch to non-fossil fuels, as well as a strong shift of container transport from road transport to rail and inland navigation. For maritime shipping to and from Rotterdam two feasible pathways towards full decarbonisation by 2050 are presented. Both include a stepwise shift towards renewable electricity based energy carriers for ships (liquids and gaseous for long distances and hydrogen and electricity for shorter distances).
Finally the report derives a set of recommendations for the Port Authority as well as the Dutch, German and European policymakers to support the transition towards a drastic reduction of greenhouse gase (GHG) emissions from in the transport sector and for using this as a strategy for a sustainable economic development.
The Paris Agreement calls on all nations to pursue efforts to contribute to limiting the global temperature increase to 1.5 °C above pre-industrial levels. However, due to limited global, regional and country-specific analysis of highly ambitious GHG mitigation pathways, there is currently a lack of knowledge about the transformational changes needed in the coming decades to reach this target. Through a meta-analysis of mitigation scenarios for Germany, this article aims to contribute to an improved understanding of the changes needed in the energy system of an industrialized country. Differentiation among six key long-term energy system decarbonization strategies is suggested, and an analysis is presented of how these strategies will be pursued until 2050 in selected technologically detailed energy scenarios for Germany. The findings show, that certain strategies, including the widespread use of electricity-derived synthetic fuels in end-use sectors as well as behavioral changes, are typically applied to a greater extent in mitigation scenarios aiming at high GHG emission reductions compared to more moderate mitigation scenarios. The analysis also highlights that the pace of historical changes observed in Germany between 2000 and 2015 is clearly insufficient to adequately contribute to not only the 1.5 °C target, but also the 2 °C long-term global target.
The German federal state of North Rhine-Westphalia (NRW) is home to important clusters of energy-intensive basic materials industries. 15% of the EU's primary steel as well as 15% of high-value base chemicals are produced here. Together with refinery fuels, cement, lime and paper production (also overrepresented in NRW) these are the most carbon-intensive production processes of the industrial metabolism. To achieve the ambitious regional and national climate goals without relocating these clusters, carbon-neutral production will have to become standard by mid-century. We develop and evaluate three conceptual long-term scenarios towards carbon-neutral industry systems for NRW for 2050 and beyond:
* a first scenario depending on carbon capture and storage or use for heavy industries (iCCS),
* a second scenario sketching the direct electrification of industrial processes (and transport) and
* a third scenario relying on the import of low carbon energies (e.g. biomass, and synthetic fuels (like methanol) for the use in industries and transport. All scenarios share the assumption that electricity generation will be CO2-neutral by 2050.
For all three scenarios energy efficiency, primary energy demand for energy services and feedstock as well as the carbon balance are quantified. We apply a spatial-explicit analysis of production sites to allow for discussion of infrastructure re-use and net investment needs. Possible symbiotic relations between sectors are also included. The robustness of the three conceptualised future carbon-neutral industry systems is then analysed using a multi-criteria approach, including e.g. energy security issues and lock-ins on the way to 2050.