Electric cars: a boon for Canada?

By Globe and Mail


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Canada is well-positioned to take advantage of moves by auto makers to bring electric vehicles and other fuel-efficient technologies to market, say analysts who have studied these developments.

The opportunities for Canada are exemplified by Ford Motor Co.'s partnership with Canadian auto parts manufacturer Magna International to produce a fully electric car that goes up to 160 kilometres on a single charge.

Magna officials say the partnership will create jobs at Magna, and there are more opportunities out there.

Bill Pochiluk, president of industry adviser AutomotiveCompass LLC, has said Canada has all the resources it needs to be a global leader in green automotive technology. Canadian governments can help by funding more research and development.

The United States has already put in place a $25-billion (US) fund for research and development of green automotive technology. Canada only invests $500,000 annually.

Opportunities for Canada exist in developing lightweight aluminum components that help improve fuel efficiency of gasoline vehicles and extend the range of electric and hybrid ones. Federal organizations such as the National Research Council have a role to play in funding the development of these sorts of green vehicle technologies, say advocates.

There is much at stake. One in every 20 new cars sold in Canada could be electrically powered within a decade, say members of a task force on the future of plug-in vehicles.

The group was set up by the federal government last winter to design Canada's Electric Vehicle and Technology Road Map for shifting the transportation industry away from fossil fuels.

"It's going to be an electric vehicle revolution," says Michael Elwood, chairperson of the task force and vice-president of marketing at Vancouver-based Azure Dynamics, which specializes in electric and hybrid electric drive technology.

"Hybrid electric, plug-in hybrid electric and electric vehicles are all part of the equation," he says.

If one in 20 new cars sold in Canada is electric — 5 per cent of the market — about 80,000 electric vehicles would be sold each year, based on current sales volumes.

"Electricity may be the only fuel for land transportation that can substantially replace oil products while continuing to provide for the amount of movement of people and freight that is essential for modern society," says the report.

"Oil products now fuel 95 per cent of world transport activity and transport activity consumes 60 per cent of oil production. Both shares are higher in Canada. The need to reduce demand for oil, to avert scarcity and high prices is gathering urgency."

Auto manufacturers are, of course, moving ahead with hybrid and electric technologies in their new models. But the success of electrics and hybrids is contingent on consumer demand, fuel prices and, perhaps above all, research and development funding.

At present, auto companies, even ones with a relatively strong balance sheet and a pristine credit rating, are finding it impossible to get the financing needed to develop the batteries and other technologies that will make clean electric cars safe, reliable, practical and affordable.

"If we want to transform this industry, in a radical way, we are going to need a lot of investment," says Nissan CEO Carlos Ghosn. "You cannot take an existing car and retrofit it and say, 'It's electric.' You have to start from zero.

"If we are serious about transforming the industry into something that's as clean as possible, [governments] have to make long-term financing available at a reasonable interest rate."

Ghosn adds that "even Triple-A companies" are having problems getting financing simply for operations.

"The industry today is unable to finance itself to make the transition. But when you are investing massively in batteries, when the financial market doesn't care about it, it is impossible. Who is struggling is not the issue. This is not a Big Three issue. It is valid for Europeans. It is valid for the Japanese," Ghosn said.

Ghosn and others say the industry is in the early stages of a revolutionary change in technology — from internal combustion engines that have dominated for a century to electric vehicles that most believe are the future. But research into creating more powerful, longer-lasting batteries is expensive, as is developing sufficient infrastructure for owners of electric vehicles to charge their vehicles.

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Ontario prepares to extend disconnect moratoriums for residential electricity customers

Ontario Electricity Relief outlines an extended disconnect moratorium, potential time-of-use price changes, and Ontario Energy Board oversight to support residential customers facing COVID-19 hardship and bill payment challenges during the emergency in Ontario.

 

Key Points

Plan to extend disconnect moratorium and weigh time-of-use price relief for residential customers during COVID-19.

✅ Extends winter disconnect ban by 3 months

✅ Considers time-of-use price adjustments

✅ Requires Ontario Energy Board approval

 

The Ontario government is preparing to announce electricity relief for residential electricity users struggling because of the COVID-19 emergency, according to sources.

Sources close to those discussions say a decision has been made to lengthen the existing five-month disconnect moratorium by an additional three months.

Separately, Hydro One's relief fund has offered support to its customers during the pandemic.

News releases about the moratorium extension are currently being drafted and are expected to be released shortly, as the pandemic has reduced electricity usage across Ontario.

Electricity utilities in Ontario are currently prohibited from disconnecting residential customers for non-payment during the winter ban period from November 15 to April 30.

The province is also looking at providing further relief by adjusting time-of-use prices, such as off-peak electricity rates, which are designed to encourage shifting of energy use away from periods of high total consumption to periods of low demand.

For businesses, the province has provided stable electricity pricing to support industrial and commercial operations.

But that would require Ontario Energy Board approval and no decision has been finalized, our sources advise.

 

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Key Ontario power system staff may end up locked down at work sites due to COVID-19, operator says

Ontario IESO COVID-19 Control Room Measures detail how essential operators safeguard the electricity grid with split shifts, backup control centres, real-time balancing, deep cleaning, social distancing, and shelter-in-place readiness to maintain reliable power.

 

Key Points

Measures that protect essential grid operators with split shifts, backup sites, and hygiene to keep power reliable.

✅ Split teams across primary and backup control centres

✅ 12-hour shifts with remote handoffs and deep cleaning

✅ Real-time grid modeling to balance demand and supply

 

A group of personnel key to keeping Ontario's electricity system functioning may end up locked down in their control centres due to the COVID-19 crisis, according to the head of the province's power operator.

But that has so far proven unnecessary with a change-up in routine, Independent Electricity System Operator CEO Peter Gregg said.

While about 90 per cent of staff were sent to work from home on March 13, another 48 control-room operators deemed essential are still going into work, Gregg said in an interview.

"We identified a smaller cohort of critical operations room staff that need to go in to operate the system out of our control centres," Gregg said. "My biggest concern is to maintain their health, their safety as we rely on them to do this critical work."

Some of the operators manage power demand and supply in real time as Ontario electricity demand shifts, by calling for more or less generation and keeping an eye on the distribution grid, which also allows power to flow to and from Ontario's neighbours. Others do scenario planning and modelling to prepare for changes.

The essential operators have been split into eight teams of six each working 12-hour shifts. The day crew works out of a control centre near Toronto and the night shift out of a backup centre in the city's west end, Gregg said.

"That means that we're not having physical hand-off between control room operators on shift change -- we can do it remotely -- and it also allows us to do deep cleansing," Gregg said. "We're fortunate that the way the room is set up allows us to practice good social distancing."

Should it become necessary, he said, bed, food and other on-site arrangements have been made to allow the operators to stay at their workplaces as a similar agency in New York has done.

"If we do need to shelter these critical employees in place, we've got the ability to do so."

IESO is responsible for ensuring a balance between supply and demand for electricity across the province. Because power cannot be stored, the IESO ensures generators produce enough power to meet peak demand while making sure they don't produce too much.

"You're seeing, obviously, commercial demand drop, some industrial demand drop," Gregg said. "But you're also seeing a shift in the demand curve as well, where normally you have people heading off to work and so residential demand would go down. But obviously with them staying home, you're seeing an increase in residential electricity use across the province."

Some utilities have indicated no cuts to peak rates for self-isolating customers, with Hydro One peak pricing remaining in place for now.

IESO also runs and settles the wholesale electricity markets. Market prices are set based on accepted offers to supply electricity, while programs supporting stable electricity pricing for industrial and commercial users can affect costs against forecast demand.

With the pandemic forcing many businesses to close and people to stay home, and provincial electricity relief for families and small businesses in place, typical power needs fallen about seven per cent at a time of year that would normally see demand soften anyway. It remains to be seen whether, and how much, power needs shift further amid stringent isolation measures and the ongoing economic impact of the outbreak.

Gregg said the operator is constantly modeling different possibilities.

"What we do normally is prepare for all of these sort of emergency scenarios, as reflected in the U.S. grid response coverage, and test and drill for these," he said. "What we're experiencing over the last few weeks is that those drills come in handy because they help us prepare for when the real-time situation actually happens."

 

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Tunisia moves ahead with smart electricity grid

Tunisia Smart Grid Project advances with an AFD loan as STEG deploys smart meters in Sfax, upgrades grid infrastructure, boosts energy efficiency, curbs losses, and integrates renewable energy through digitalization and advanced communication systems.

 

Key Points

A national program funded by an AFD $131.7M loan to modernize STEG, deploy smart meters, and integrate renewable energy.

✅ 430,000 smart meters in Sfax during phase one

✅ 20-year AFD loan with 7-year grace period

✅ Cuts losses, improves efficiency, enables renewables

 

The Tunisian parliament has approved taking a $131.7 million loan from the French Development Agency for the implementation of a smart grid project.

Parliament passed legislation regarding the 400 million dinar ($131.7 million) loan plus a grant of $1.1 million.

The loan, to be repaid over 20 years with a grace period of up to 7 years, is part of the Tunisian government’s efforts to establish a strategy of energy switching aimed at reducing costs and enhancing operational efficiency.

The move to the smart grid had been postponed after the Tunisian Company of Electricity and Gas (STEG) announced in March 2017 that implementation of the first phase of the project would begin in early 2018 and cover the entire country by 2023.

STEG was to have received funding some time ago. Last year at the Africa Smart Grid Summit in Tunis, the company said it would initiate an international tender during the first quarter of 2019 to start the project.

The French funding is to be allocated to implementation of the first phase only, which will involve development of control and communication stations and the improvement of infrastructure, where regulatory outcomes such as the Hydro One T&D rates decision can influence investment planning in comparable markets.

It includes installation of 430,000 “intelligent” metres over three years in Sfax governorate in southern Tunisia. The second phase of the project is planned to extend the programme to the rest of the country.

Smart metres to be installed in homes and businesses in Sfax account for about 10% of the total number of metres to be deployed in Tunisia.

At the beginning of 2017, the Industrial Company of Metallic Articles (SIAM), a Tunisian industrial electrical equipment and machinery company, signed an agreement with Huawei for the Chinese company to supply smart electricity metres. The value of the deal was not disclosed.

The smart grid is designed to reduce power waste, reduce the number of unpaid bills, prevent consumer fraud such as power theft in India across distribution networks, improve the ecosystem and increase competitiveness in the electricity sector.

Experts said the main difference between the traditional and smart grids is the adoption of advanced infrastructure for measuring electricity consumption and for communication between the power plant and consumers. The data exchange allows power plants to coordinate electricity production with actual demand.

STEG previously indicated that it had implemented measures to ensure the transition to the smart grid, especially since digitalisation is playing an important role in the energy sector.

The project, which translates Tunisia’s energy plans in the form of a partnership between the public and private sectors, aims at reaching 30% of the country’s electricity need from renewable sources by 2025, even as entities like the TVA face climate goals scrutiny that can affect electricity rates in other markets.

The development of the smart grid will allow STEG to monitor consumption patterns, detect abuses and remotely monitor the grid’s power supply, at a time when regulators have questioned UK network profits to spur efficiency, underscoring the value of transparency.

“The smart grid will change the face of the energy system towards the use of renewable energies,” said Tunisian Industry Minister Slim Feriani. At the forum on alternative energies, he pointed out that energy sector digitisation requires investments in technology and a change in the consumption mentality, as new entrants consider roles like Tesla electricity retailer plans in advanced markets.

Official data indicate that Tunisia’s energy deficit accounts for one-third of the country’s annual trade deficit, which reached record levels of more than $6 billion last year.

STEG, whose debts have reached $329 million over the past eight years, a situation resembling Manitoba Hydro debt pressures in Canada, has not disclosed when and how funding would be secured for the completion of the second phase. The company insists it is working to prevent further losses and to collect its unpaid bills.

STEG CEO Moncef Harrabi, earlier this year, said: “The current situation of the company has forced us to take immediate action to reduce the worsening of the crisis and stop the financial bleeding caused by losses.”

He said the company had repeatedly asked the government to pay subsidy instalments due to the company and to enact binding decisions to force government institutions and departments to pay electricity bills, while elsewhere measures like Thailand power bill cuts have been used to support consumers.

The Tunisian government has yet to disburse the subsidy instalments due STEG for 2018 and 2019, which amount to $658 million. STEG also imports natural gas from Algeria for its power plants at a cost of $1.1 billion a year.

 

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Inside Copenhagen’s race to be the first carbon-neutral city

Hedonistic Sustainability turns Copenhagen's ARC waste-to-energy plant into a public playground, blending ski slope, climbing wall, and trails with carbon-neutral heating, renewables, circular economy design, and green growth for climate action and liveability.

 

Key Points

A design approach fusing public recreation with clean-energy infrastructure to drive carbon-neutral, livable urban growth.

✅ Waste-to-energy plant doubles as recreation hub

✅ Supports carbon-neutral heating and renewables

✅ Stakeholder-driven, scalable urban climate model

 

“We call it hedonistic sustainability,” says Jacob Simonsen of the decision to put an artificial ski slope on the roof of the £485m Amager Resource Centre (Arc), Copenhagen’s cutting-edge new waste-to-energy power plant that feeds the city’s district heating network as well. “It’s not just good for the environment, it’s good for life.”

Skiing is just one of the activities that Simonsen, Arc’s chief executive, and Bjarke Ingels, its lead architect, hope will enhance the latest jewel in Copenhagen’s sustainability crown. The incinerator building also incorporates hiking and running trails, a street fitness gym and the world’s highest outdoor climbing wall, an 85-metre “natural mountain” complete with overhangs that rises the full height of the main structure.

In Copenhagen, green transformation goes hand-in-hand with job creation, a growing economy and a better quality of life

Frank Jensen, lord mayor

It’s all part of Copenhagen’s plan to be net carbon-neutral by 2025. Even now, after a summer that saw wildfires ravagethe Arctic Circle and ice sheets in Greenland suffer near-record levels of melt, the goal seems ambitious. In 2009, when the project was formulated, it was positively revolutionary.

“A green, smart, carbon-neutral city,” declared the cover of the climate action plan, aligning with a broader electric planet vision, before detailing the scale of the challenge: 100 new wind turbines; a 20% reduction in both heat and commercial electricity consumption; 75% of all journeys to be by bike, on foot, or by public transport; the biogas-ification of all organic waste; 60,000 sq metres of new solar panels; and 100% of the city’s heating requirements to be met by renewables.

Radical and far-reaching, the scheme dared to rethink the very infrastructure underpinning the city. There’s still not a climate project anywhere else in the world that comes close, even as leaders elsewhere champion a fully renewable grid by 2030.

And, so far, it’s working. CO2 emissions have been reduced by 42% since 2005, and while challenges around mobility and energy consumption remain (new technologies such as better batteries and carbon capture are being implemented, and global calls for clean electricity investment grow), the city says it is on track to achieve its ultimate goal.

More significant still is that Copenhagen has achieved this while continuing to grow in traditional economic terms. Even as some commentators insist that nothing short of a total rethink of free-market economics and corporate structures is required to stave off global catastrophe, the Danish capital’s carbon transformation has happened alongside a 25% growth in its economy over two decades. Copenhagen’s experience will be a model for other world cities as the global energy transition unfolds.

The sentiment that lies behind Arc’s conception as a multi-use public good – “hedonistic sustainability” – is echoed by Bo Asmus Kjeldgaard, former mayor of Copenhagen for the environment and the man originally tasked, back in 2010, with making the plan a reality.

“We combined life quality with sustainability and called it ‘liveability’,” says Kjeldgaard, now CEO of his own climate adaptation company, Greenovation. “We succeeded in building a good narrative around this, one that everybody could believe in.”

The idea was first floated in the late 1990s, when the newly elected Kjeldgaard had a vision of Copenhagen as the environmental capital of Europe. His enthusiasm ran into political intransigence, however, and despite some success, a lack of budget meant most of his work became “just another branding exercise – it was greenwashing”.

We’re such a rich country – change should be easy for us

Claus Nielsen, furniture maker and designer

But after stints as mayor of family and the labour market, and children and young people, he ended up back at environment in 2010 with renewed determination and, crucially, a broader mandate from the city council. “I said: ‘This time, we have to do it right,’” he recalls, “so we made detailed, concrete plans for every area, set the carbon target, and demanded the money and the manpower to make it a reality.”

He brought on board more than 200 stakeholders, from businesses to academia to citizen representatives, and helped them develop 22 specific business plans and 65 separate projects. So far the plan appears on track: there has been a 15% reduction in heat consumption, 66% of all trips in the city are now by bike, on foot or public transport, and 51% of heat and power comes from renewable electricity sources.

The onus placed on ordinary Copenhageners to walk and cycle more, pay higher taxes (especially on cars) and put up with the inconvenience of infrastructure construction has generally been met with understanding and good grace. And while some people remain critical of the fact that Copenhagen airport is not factored into the CO2 calculations – it lies beyond the city’s boundaries – and grumble about precise definitions and formulae, dissent has been rare.

This relative lack of nimbyism and carping about change can, says Frank Jensen, the city’s lord mayor, be traced to longstanding political traditions.

“Caring for the environment and taking responsibility for society in general has been an integral part of the upbringing of many Danes,” he says. “Moreover, there is a general awareness that climate change now calls for immediate, ambitious and collective action.” A 2018 survey by Concito, a thinktank, found that such action was a top priority for voters.

Jensen is keen to stress the cooperative nature of the plan and says “our visions have to be grounded in the everyday lives of people to be politically feasible”. Indeed, involving so many stakeholders, and allowing them to actively help shape both the ends and the means, has been key to the plan’s success so far and the continued goodwill it enjoys. “It’s so important to note that we [the authorities] cannot do this alone,” says Jørgen Abildgaard, Copenhagen’s executive climate programme director.

Many businesses around the world have typically been reluctant to embrace sustainability when a dip in profits or inconvenience might be the result, but not in Copenhagen. Martin Manthorpe, director of strategy, business development and public affairs at NCC, one of Scandinavia’s largest construction and industrial groups, was brought in early on by Abildgaard to represent industry on the municipality’s climate panel, and to facilitate discussions with the wider business community. He thinks there are several reasons why.

“The Danes have a trading mindset, meaning ‘What will I have to sell tomorrow?’ is just as important as ‘What am I producing today?’” he says. “Also, many big Danish companies are still ultimately family-owned, so the culture leans more towards long-term thinking.”

It is, he says, natural for business to be concerned with issues around sustainability and be willing to endure short-term pain: “To do responsible, long-term business, you need to see yourself as part of the larger puzzle that is called ‘society’.”

Furthermore, in Denmark climate change denial is given extremely short shrift. “We believe in the science,” says Anders Haugaard, a local entrepreneur. “Why wouldn’t you? We’re told sustainability brings only benefits and we’ve got no reason to be suspicious.”

“No one would dare argue against the environment,” says his friend Claus Nielsen, a furniture maker and designer. “We’re such a rich country – change should be easy for us.” Nielsen talks about how enlightened his kids are – “my 11-year-old daughter is now a flexitarian ” – and says that nowadays he mainly buys organic; Haugaard doesn’t see a problem with getting rid of petrol cars (the whole country is aiming to be fossil fuel-free by 2050 as the EU electricity use by 2050 is expected to double).

Above all, there’s a belief that sustainability need not make the city poorer: that innovation and “green growth” can be lucrative in and of themselves. “In Copenhagen, green transformation goes hand-in-hand with job creation, a growing economy and a better quality of life,” says Jensen. “We have also shown that it’s possible to combine this transition with economic growth and market opportunities for businesses, and I think that other countries can learn from our example.”

Besides, as Jensen notes, there is little alternative, and even less time: “National states have failed to take enough responsibility, but cities have the power and will to create concrete solutions. We need to start accelerating their implementation – we need to act now.”

 

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Brazil tax strategy to bring down fuel, electricity prices seen having limited effects

Brazil ICMS Tax Cap limits state VAT on fuels, natural gas, electricity, communications, and transit, promising short-term price relief amid inflation, with federal compensation to states and potential legal challenges affecting investments and ANP auctions.

 

Key Points

A policy capping state VAT at 17-18 percent on fuels, electricity, and services to temper prices and inflation.

✅ Caps VAT to 17-18% on fuels, power, telecom, transit

✅ Short-term relief; medium-long term impact uncertain

✅ Federal compensation; potential court challenges, investment risk

 

Brazil’s congress approved a bill that limits the ICMS tax rate that state governments can charge on fuels, natural gas, electricity, communications, and public transportation. 

Local lawyers told BNamericas that the measure may reduce fuel and power prices in the short term, similar to Brazil power sector relief loans seen during the pandemic, but it is unlikely to produce any major effects in the medium and long term. 

In most states the ceiling was set at 17% or 18% and the federal government will pay compensation to the states for lost tax revenue until December 31, via reduced payments on debts that states owe the federal government.

The bill will become law once signed by President Jair Bolsonaro, who pushed strongly for the proposal with an eye on his struggling reelection campaign for the October presidential election. Double-digit inflation has turned into a major election issue and fuel and electricity prices have been among the main inflation drivers, as seen in EU energy-driven inflation across the bloc this year. Congress’ approval of the bill is seen by analysts as political victory for the Brazilian leader.

How much difference will it make?

Marcus Francisco, tax specialist and partner at Villemor Amaral Advogados, said that in the formation of fuel and electricity prices there are other factors, including high natural gas prices, that drive increases.

“In the case of fuels, if the barrel of oil [price] increases, automatically the final price for the consumer will go up. For electricity, on the other hand, there are several subsidies and policy choices such as Florida rejecting federal solar incentives that are part of the price and that can increase the rate [paid],” he said. 

There is also a possibility that some states will take the issue to the supreme court since ICMS is a key source of revenue for them, Francisco added.

Tiago Severini, a partner at law firm Vieira Rezende, said the comparison between the revenue impact and the effective price reduction, based on the estimates made by the states and the federal government, seems disproportionate, and, as seen in Europe, rolling back European electricity prices is often tougher than it appears. 

“In other words, a large tax collection impact is generated, which is quite unequal among the different states, for a not so strong price reduction,” he said.

“Due to the lack of clarity regarding the precision of the calculations involved, it’s difficult even to assess the adequacy of the offsets the federal government has been considering, and international cases such as France's new electricity pricing scheme illustrate how complex it can be to align fiscal offsets with regulatory constraints, to cover the cost it would have with the compensation for the states” Severini added.

The compensation ideas that are known so far include hiking other taxes, such as the social contribution on net profits (CSLL) that is paid by oil and gas firms focused on exploration and production.

“This can generate severe adverse effects, such as legal disputes, reduced investments in the country, and reduced attractiveness of the new auctions by [sector regulator] ANP, and costly interventions like the Texas electricity market bailout after extreme weather events,” Severini said. 

 

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Carbon capture: How can we remove CO2 from the atmosphere?

CO2 Removal Technologies address climate change via negative emissions, including carbon capture, reforestation, soil carbon, biochar, BECCS, DAC, and mineralization, helping meet Paris Agreement targets while managing costs, land use, and infrastructure demands.

 

Key Points

Methods to extract or sequester atmospheric CO2, combining natural and engineered approaches to limit warming.

✅ Includes reforestation, soil carbon, biochar, BECCS, DAC, mineralization

✅ Balances climate goals with costs, land, energy, and infrastructure

✅ Key to Paris Agreement targets under 1.5-2.0 °C warming

 

The world is, on average, 1.1 degrees Celsius warmer today than it was in 1850. If this trend continues, our planet will be 2 – 3 degrees hotter by the end of this century, according to the Intergovernmental Panel on Climate Change (IPCC).

The main reason for this temperature rise is higher levels of atmospheric carbon dioxide, which cause the atmosphere to trap heat radiating from the Earth into space. Since 1850, the proportion of CO2 in the air has increased, with record greenhouse gas concentrations documented, from 0.029% to 0.041% (288 ppm to 414 ppm).

This is directly related to the burning of coal, oil and gas, which were created from forests, plankton and plants over millions of years. Back then, they stored CO2 and kept it out of the atmosphere, but as fossil fuels are burned, that CO2 is released. Other contributing factors include industrialized agriculture and slash-and-burn land clearing techniques, and emissions from SF6 in electrical equipment are also concerning today.

Over the past 50 years, more than 1200 billion tons of CO2 have been emitted into the planet's atmosphere — 36.6 billion tons in 2018 alone, though global emissions flatlined in 2019 before rising again. As a result, the global average temperature has risen by 0.8 degrees in just half a century.


Atmospheric CO2 should remain at a minimum
In 2015, the world came together to sign the Paris Climate Agreement which set the goal of limiting global temperature rise to well below 2 degrees — 1.5 degrees, if possible.

The agreement limits the amount of CO2 that can be released into the atmosphere, providing a benchmark for the global energy transition now underway. According to the IPCC, if a maximum of around 300 billion tons were emitted, there would be a 50% chance of limiting global temperature rise to 1.5 degrees. If CO2 emissions remain the same, however, the CO2 'budget' would be used up in just seven years.

According to the IPCC's report on the 1.5 degree target, negative emissions are also necessary to achieve the climate targets.


Using reforestation to remove CO2
One planned measure to stop too much CO2 from being released into the atmosphere is reforestation. According to studies, 3.6 billion tons of CO2 — around 10% of current CO2 emissions — could be saved every year during the growth phase. However, a study by researchers at the Swiss Federal Institute of Technology, ETH Zurich, stresses that achieving this would require the use of land areas equivalent in size to the entire US.

Young trees at a reforestation project in Africa (picture-alliance/OKAPIA KG, Germany)
Reforestation has potential to tackle the climate crisis by capturing CO2. But it would require a large amount of space


More humus in the soil
Humus in the soil stores a lot of carbon. But this is being released through the industrialization of agriculture. The amount of humus in the soil can be increased by using catch crops and plants with deep roots as well as by working harvest remnants back into the ground and avoiding deep plowing. According to a study by the German Institute for International and Security Affairs (SWP) on using targeted CO2 extraction as a part of EU climate policy, between two and five billion tons of CO2 could be saved with a global build-up of humus reserves.


Biochar shows promise
Some scientists see biochar as a promising technology for keeping CO2 out of the atmosphere. Biochar is created when organic material is heated and pressurized in a zero or very low-oxygen environment. In powdered form, the biochar is then spread on arable land where it acts as a fertilizer. This also increases the amount of carbon content in the soil. According to the same study from the SWP, global application of this technology could save between 0.5 and two billion tons of CO2 every year.


Storing CO2 in the ground
Storing CO2 deep in the Earth is already well-known and practiced on Norway's oil fields, for example. However, the process is still controversial, as storing CO2 underground can lead to earthquakes and leakage in the long-term. A different method is currently being practiced in Iceland, in which CO2 is sequestered into porous basalt rock to be mineralized into stone. Both methods still require more research, however, with new DOE funding supporting carbon capture, utilization, and storage.

Capturing CO2 to be held underground is done by using chemical processes which effectively extract the gas from the ambient air, and some researchers are exploring CO2-to-electricity concepts for utilization. This method is known as direct air capture (DAC) and is already practiced in other parts of Europe.  As there is no limit to the amount of CO2 that can be captured, it is considered to have great potential. However, the main disadvantage is the cost — currently around €550 ($650) per ton. Some scientists believe that mass production of DAC systems could bring prices down to €50 per ton by 2050. It is already considered a key technology for future climate protection.

The inside of a carbon capture facility in the Netherlands (RWE AG)
Carbon capture facilities are still very expensive and take up a huge amount of space

Another way of extracting CO2 from the air is via biomass. Plants grow and are burned in a power plant to produce electricity. CO2 is then extracted from the exhaust gas of the power plant and stored deep in the Earth, with new U.S. power plant rules poised to test such carbon capture approaches.

The big problem with this technology, known as bio-energy carbon capture and storage (BECCS) is the huge amount of space required. According to Felix Creutzig from the Mercator Institute on Global Commons and Climate Change (MCC) in Berlin, it will therefore only play "a minor role" in CO2 removal technologies.


CO2 bound by rock minerals
In this process, carbonate and silicate rocks are mined, ground and scattered on agricultural land or on the surface water of the ocean, where they collect CO2 over a period of years. According to researchers, by the middle of this century it would be possible to capture two to four billion tons of CO2 every year using this technique. The main challenges are primarily the quantities of stone required, and building the necessary infrastructure. Concrete plans have not yet been researched.


Not an option: Fertilizing the sea with iron
The idea is use iron to fertilize the ocean, thereby increasing its nuturient content, which would allow plankton to grow stronger and capture more CO2. However, both the process and possible side effects are very controversial. "This is rarely treated as a serious option in research," concludes SWP study authors Oliver Geden and Felix Schenuit.

 

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