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Bank lending and environmental quality in Gulf Cooperation Council countries

To achieve economies with net-zero carbon emissions, it is essential to develop a robust green financial intermediary channel. This study seeks empirical evidence on how domestic bank lending to sovereign and private sectors in Gulf Cooperation Council (GCC) countries impacts carbon dioxide and greenhouse gas emissions. We employ PMG-ARDL model to panel data comprising six countries in GCC over twenty years for carbon dioxide emissions and nineteen years for greenhouse gas emissions. Our findings reveal a long-term positive impact of both bank lending variables on carbon dioxide and greenhouse gas emissions. In addition, lending to the government shows a negative short-term effect on greenhouse gas emissions. The cross-country results demonstrate the presence of a long-run effect of explanatory variables on both types of emissions, except for greenhouse gas in Saudi Arabia. The sort-term impact of the explanatory variables on carbon dioxide and greenhouse gas emissions is quite diverse. Not only do these effects differ across countries, but some variables have opposing effects on the two types of emissions within a single country. The findings of this study present a new perspective for GCC economies: neglecting total greenhouse gas emissions and concentrating solely on carbon dioxide emissions means missing critical information for devising effective strategies to combat threats of environmental degradation and achieve net-zero goals.

Demand-side strategies enable rapid and deep cuts in buildings and transport emissions to 2050

Decarbonization of energy-using sectors is essential for tackling climate change. We use an ensemble of global integrated assessment models to assess CO2 emissions reduction potentials in buildings and transport, accounting for system interactions. We focus on three intervention strategies with distinct emphases: reducing or changing activity, improving technological efficiency and electrifying energy end use. We find that these strategies can reduce emissions by 51–85% in buildings and 37–91% in transport by 2050 relative to a current policies scenario (ranges indicate model variability). Electrification has the largest potential for direct emissions reductions in both sectors. Interactions between the policies and measures that comprise the three strategies have a modest overall effect on mitigation potentials. However, combining different strategies is strongly beneficial from an energy system perspective as lower electricity demand reduces the need for costly supply-side investments and infrastructure.

Rising greenhouse gas emissions embodied in the global bioeconomy supply chain

The bioeconomy is key to meeting climate targets. Here, we examine greenhouse gas emissions in the global bioeconomy supply chain (1995–2022) using advanced multi-regional input-output analysis and a global land-use change model. Considering agriculture, forestry, land use, and energy, we assess the carbon footprint of biomass production and examine its end-use by provisioning systems. The footprint increased by 3.3 Gt CO2-eq, with 80% driven by international trade, mainly beef and biochemicals (biofuels, bioplastics, rubber). Biochemicals showed the largest relative increase, doubling due to tropical land-use change (feedstock cultivation) and China’s energy-intensive processing. Food from retail contributes most to the total biomass carbon footprint, while food from restaurants and canteens account for >50% of carbon-footprint growth, with three times higher carbon intensity than retail. Our findings emphasize the need for sustainable sourcing strategies and that adopting renewables and halting land-use change could reduce the bioeconomy carbon footprint by almost 60%.

Diversity of biomass usage pathways to achieve emissions targets in the European energy system

Biomass is a versatile renewable energy source with applications across the energy system, but it is a limited resource and its usage needs prioritization. We use a sector-coupled European energy system model to explore near-optimal solutions for achieving emissions targets. We find that provision of biogenic carbon has higher value than bioenergy provision. Energy system costs increase by 20% if biomass is excluded at a net-negative (−110%) emissions target and by 14% at a net-zero target. Dispatchable bioelectricity covering ~1% of total electricity generation strengthens supply reliability. Otherwise, it is not crucial in which sector biomass is used, if combined with carbon capture to enable negative emissions and feedstock for e-fuel production. A shortage of renewable electricity or hydrogen supply primarily increases the value of using biomass for fuel production. Results are sensitive to upstream emissions of biomass, carbon sequestration capacity and costs of direct air capture.

Low-carbon ammonia production is essential for resilient and sustainable agriculture

Ammonia-based synthetic nitrogen fertilizers (N fertilizers) are critical for global food security. However, their production, primarily dependent on fossil fuels, is energy- and carbon-intensive and vulnerable to supply chain disruptions, affecting 1.8 billion people reliant on either imported fertilizers or natural gas. Here we examine the global N-fertilizer supply chain and analyse context-specific trade-offs of low-carbon ammonia production pathways. Carbon capture and storage can reduce overall emissions by up to 70%, but still relies on natural gas. Electrolytic and biochemical processes minimize emissions but are 2–3 times more expensive and require 100–300 times more land and water than the business-as-usual production. Decentralized production has the potential to reduce transportation costs, emissions, reliance on imports and price volatility, increasing agricultural productivity in the global south, but requires policy support. Interdisciplinary approaches are essential to understand these trade-offs and find resilient ways to feed a growing population while minimizing climate impacts.

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