BNP Paribas draws up roadmap for coal free investment
Leading multinational bank BNP Paribas has announced that it is fully committed to the decarbonisation of its portfolio, taking the decision to end all thermal coal investments and interests by 2030 in the European Union (EU) and worldwide by 2040.
The bank has not funded any new coal fired power plant projects since 2017, and is seeking to cut CO2 emissions by 85% across its global electricity generation portfolio between 2014 and 2040.
Its sustainable investment strategy focuses on three areas of action: energy transition, environmental sustainability, and equality and inclusive growth. Divestment from companies whose operations are counter to progress in each of these areas, and the firm will continue to publish an annual report on energy sources for each of its electricity generation stakes worldwide.
Along with ending investment in coal, BNP Paribas has set a new financing target of €18bn for renewable energy development by 2021, an increase over the €15bn target announced in 2015.
Its efforts thus far have been recognised by Dealogic, which ranked BNP Paribas as the leading bank for investment in European and MEA renewable energy projects over the first nine months of 2019. Worldwide and in Asia, the bank ranked third.
“Like all players in the economy and society whose objective is to contribute to the necessary transition to a lower carbon economic model, BNP Paribas has a role to play,” said Jean Laurent Bonnafé, Director and Chief Executive Officer of BNP Paribas, in the company’s press release.
“As a bank, we have the opportunity, and the will, to participate in the acceleration of the energy transition by supporting our customers in this necessary transformation. To succeed, such a transition must be fair and balanced, taking into account the reality of the economic model and the daily needs of people around the world.
“These new commitments, which have clear objectives, mark a new stage in our objective of making a decisive contribution to the climate challenge.”
Trafigura and Yara International explore clean ammonia usage
Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050.
How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.
Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:
- The supply of clean ammonia by Yara to Trafigura Group companies
- Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
- Development of new clean ammonia assets including marine fuel infrastructure and market opportunities
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.
There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.
Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.
Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.
Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.
It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.