USD 1 tn in infrastructure investments is needed for hydrogen fuel to become a significant part of the energy transition in Europe and the US, Mitsubishi Heavy Industries vice president Emmanouil Kakaras told Reuters on the sidelines of CERAWeek. The transition will require a substantial increase in demand achieved only through infrastructure investments to reduce costs, he explained. European governments have already committed USD 750 bn, which, along with funding from the US Inflation Reduction Act, could enable the shift from fossil fuels to clean fuels.

But others are skeptical: Aramco CEO Amin Nasser has expressed skepticism over the current trends in the energy transition, saying the world should “abandon the fantasy of phasing out oil and gas” and arguing that it is more realistic to aim for reducing carbon emissions from existing oil and gas sources rather than entirely transitioning to other energy forms and technologies. "The current transition strategy is visibly failing on most fronts," said Nasser. "Despite its significant long term potential, hydrogen still costs in the range of $200 to $400 per barrel of oil equivalent, while oil and gas remain much cheaper."

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Air France to match customer donations for SAF: Air France, an official partner of the Paris 2024 Olympic and Paralympics Games, will match contributions given when flyers select the Environment-Sustainable Aviation Fuels option for flights between 18 July and 9 September 2024 to France and French Polynesia. (Statement)
  • South Korea allocates USD 313 bn to green projects: Five institutions from the South Korean finance sector have pledged KRW 420 tn (USD 313 bn) in green funding by the end of the decade to support projects aligned with the nation’s climate goals. The banking industry is also planning a separate KRW 9 trillion fund aimed at developing and expanding clean energy. (Bloomberg)
  • UK grid could get a USD 74 bn upgrade: Britain's National Grid is proposing a GBP 58 bn (USD 74 bn) investment program to upgrade grid networks after 2030, in anticipation of increased electricity demand and the expansion of renewable power projects to meet the country's target of decarbonizing its power sector by 2035. Potential upgrades include constructing new transmission lines to transport electricity across the UK. (Reuters)
  • Central banks using AI to assess climate-related financial risks: Several of the world’s central banks are using the Gaia AI project to collect data used to assess climate-related financial risks, analyzing companies’ disclosures on emissions, green bond issuance, and net-zero commitments. (Reuters)
  • Climate activists lose court defense: Climate activists in England and Wales can no longer use the “consent defense” in criminal damage cases, following a Court of Appeal ruling. The decision deems evidence about climate change effects “inadmissible” in such trials. (The Financial Times)
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