auctusESG | Insights | August H1 2024

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Accelerating global sustainable finance & climate transition

Published Aug 16, 2024

Data dashboard

Wind and solar generation surpassing fossil fuels

A recent report from Ember highlights significant advancements in the European Union 's power sector, showcasing the progress of its clean energy transition. In the first half of 2024, wind and solar energy made up 30% of the electricity mix, surpassing the 27% share from fossil fuels, which had a 33% share in the same period last year. Notably, electricity generation from fossil fuels saw a 17% decline, marking an all-time low in the EU's reliance on these energy sources.

This shift is particularly impressive given that electricity demand rose by 0.7% in H1 2024. For the first time, renewables have overtaken fossil fuels, driven by structural growth in capacity additions and favourable conditions. Solar energy generation grew by 20%, and wind energy by 13%. Hydro sources also experienced a 21% growth, though their overall share was impacted by subsequent droughts in the region. Additionally, nuclear generation across the EU increased by 3.1% during this period. Germany, Italy, Spain, France, and Belgium played a significant role in this transition, collectively accounting for three-quarters of the reduction in fossil fuel generation.

Read more here. Euan Graham and Nicolas Fulghum

News roundup

Susceptibility of Indian cities to heatwaves and other extreme weather events

A study by IPE Global Limited and Esri India highlights that over 84% of Indian districts are vulnerable to extreme heatwaves, with 70% also experiencing more frequent and intense rainfall events. By 2036, eight out of 10 Indians could face extreme climate events, driven by a 0.6°C temperature rise over the last century. The study notes a dramatic increase in extreme heatwave days, particularly in the past decade, causing severe impacts on lives and infrastructure. It underscores the urgent need for a data-driven approach to inform climate adaptation and resilience strategies as India faces increasingly unpredictable weather patterns. The study also highlights a 15-fold increase in extreme heatwave days during March to September over the past three decades, with a 19-fold increase in the last decade alone.

Spotlight

The green conversation around the Paris Olympics 2024

The Olympic fever has recently subsided, with 27 countries winning gold medals, 2 more than the previous record! Over the past 11 days, viewers were glued to their screens, holding their breath as athletes dazzled audiences across the globe. The Games saw 3 world records, 13 Olympic records, and countless national and area records being set.

This Olympics was also special for another reason; it has been termed as the most ‘environmentally conscious’ Games, with the organising committee committing to reduce the event’s carbon emissions by 50%. This target translates into lowering emissions to 1.75 million tonnes, from 3.5 million tonnes at Tokyo 2020, Rio 2016 and London 2012. While the final data isn't out yet, the city implemented several measures to meet this ambitious goal:

Pushing for public transportation

To enable sustainable and smooth commutes for participants and tourists, the city invested over 500 million euros in building seamless transport and sports infrastructure ahead of the Olympics. All the venues were accessible by public transport alone, with nearly 80% located within a 10km radius of the Olympic village.

Additionally, a network of 418km of bicycle lanes was established, with bicycle parking provided for spectators across the Île-de-France region. The reliance on electric, hybrid, and hydrogen-powered vehicles provided by Toyota Motor Corporation contributed to a 37% reduction in the Olympic fleet compared to previous games.

Embracing renewable energy

The Games largely relied on renewable energy sources, including geothermal and solar power sourced locally, reinforcing its sustainability commitments. As these venues were connected to the grid, it allowed for the use of renewable energy without the need for temporary diesel generators, significantly reducing the carbon footprint. Solar panels on the Aquatics Centre and Olympic Village helped harness solar energy, while geothermal cooling systems, instead of traditional air conditioning, further enhanced energy efficiency.

Relying on existing structures

Paris committed to using existing structures or temporary set-ups for conducting 95% of its events, including iconic monuments like the Stade de France and Roland Garros. The river Seine, the lifeline of the city, was utilized for the opening ceremony and the swimming events. The Calanques National Park in Marseille hosted part of the sailing competitions, as the protected habitat, Posidonia oceanica seagrass meadows, acts as the ‘lungs of the Mediterranean’, with 2.5 acres of seagrass being able to soak up as much carbon dioxide as 37 acres of rain forests.

The Aquatics Centre, the only new competition venue used for the games, featured solar power and recycled and natural bio-based materials, minimising on the emissions from building activities.

Building on circular economy principles

The Paris 2024 Olympics embedded circular economy principles, securing a second life being secured for almost 90% of the equipment and goods. This was achieved through a detailed mapping exercise of the required and existing resources, to new resource use and control their lifecycle, before and after the Games. By calculating material footprints and using existing sources, the amount of furniture was reduced from 800,000 to 600,000 items.

Examples include recycled metals in the medals, incorporating original iron from the Eiffel Tower, coffee tables made from recycled badminton shuttlecocks, bean bags from parachute fabric, chairs from recycled bottle caps, and a 100% commitment to a second life for the venues’ equipment and furniture through resale, recovery, or donation.

Advocating for plant-based, and locally sourced sustainable food options

The Olympics menu also saw a shift, with the number of plant-based options doubling for spectators to reduce the carbon footprint of meals. Catering services achieved a 50% reduction in single-use plastics, allowing spectators to bring reusable bottles into the venues. Additionally, all catering equipment and infrastructure are set to be 100% reused post-Games.

Amidst the glory of the Games, environmental concerns raised by athletes and spectators have cast a shadow over the effectiveness of certain practices.

Hygiene concerns about river Seine

Although swimming had been off-limits in the river for more than a century due to its combined sewer system, the Olympic swimming events were conducted in the river after a US $1.5 billion cleanup effort. Despite this substantial investment, the water quality has remained questionable. Athletes could feel the polluted water, with triathlete Adrien Briffod contracting a stomach infection, 3 days after competing. Readings from a month before the Olympics saw the river's E. coli bacteria levels far above the limits imposed by sports federations.

Heatwaves leading to the usage of air-conditioners

The Olympics, originally planned to rely on an eco-friendly geothermal cooling system, faced challenges due to soaring temperatures in the city. As a result, organizers allowed countries to order portable air conditioning units at their own expense, with over 2,500 units being purchased. Teams across countries such as Britain, Germany, Italy, Japan, Canada, Ireland, Greece, Australia and even India were among those that opted for additional cooling, given the unusually high summer temperatures.

In addition to these concerns, 50% of emissions contributed by air travel of delegations and spectators—around 10 million attendees—have raised questions about whether these could be offset by the other green initiatives. The Olympic Committees of various nations highlighted the tension between providing comfort (through air conditioners and food) and upholding the sustainability goals of the Games. While the Paris 2024 Olympics have paved the way for a feasible green conversation around the Olympics, the long-term sustainability of such efforts, given climate change, human needs, and lifestyle demands, remains a topic for further reflection.

Le Monde Business Standard The Indian Express World Economic Forum The Guardian Euronews

Upcoming featured events

Climate Week New York (22nd – 29th September)

Climate Week NYC 2024 promises an extensive lineup of events and influential speakers, making it a pivotal gathering for global climate action. Organized by the Climate Group , the event will feature a mix of in-person and virtual sessions, which will bring together leaders from business, government, and civil society to discuss and drive climate initiatives. Participants can expect over 500 events covering themes such as energy, environmental justice, and sustainable living, offering numerous opportunities for collaboration and learning. Notable events include the Food Tank and World Food Program USA Summit on September 26, focusing on the role of food and agriculture in addressing the climate crisis. The week aims to inspire action and foster partnerships to accelerate the transition to a cleaner, more resilient future.

Insights digest

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