China's green bond issuance increases by 14%
Green bond issuance is on the up, with China leading the way. In total, issuance in China reached $13bn in the first half of 2018. This has marked a year-on-year increase of 14%.
According to Renewables Now, a ‘large portion’ of green bond proceeds in China are earmarked for renewable energy.
Green bonds are bonds created specifically to fund projects with positive benefits to the environment, with any proceeds from the bonds being exclusively spent on ‘green’ projects.
Japan commits to 100% electric passenger cars by 2050
Of the total proceeds from China’s green bonds, about 36% are said to be for renewable energy, including wind and solar, with around 30% to be spent on low-carbon transport.
44% of bond issuance has come from financial corporates such as ICBC (Industrial and Commercial Bank of China) and Bank of China.
In 2017, China raised $30bn in green bonds, making it the world leader in the space. Globally, the green bond market increased by 45% between 2016 and 2017.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.