Commonwealth Bank looks to finally be putting the “nail in the coffin” for coal by only allowing coal companies with a comprehensive transition plan to access financing.
In the process, the nation’s biggest coal mining company, Glencore, notable for its rampant advertising in support of coal mining in recent days, is in the immediate firing line. The bank reports that financing for thermal coal miners has this year been reduced to $1.2 billion, and oil and gas have seen a cut from $3.3 billion in 2022 down to $800 million this year.
The move is backed by the bank’s commitment to a new climate plan released in its annual report, followed by its updated environmental and social framework. In the process, the banks’ transition plan now targets clients who derive 25 per cent or more of their revenue from the sale of thermal coal.
Client transition plans must include a time bound decarbonisation plan in line with the Paris Agreement to limit global warming to well below two degrees above pre-industrial levels, as well as reports on the client’s scope 1,2, and 3 emissions.
Dropping rules and regs will undermine growing confidence in housing, David Chandler says
As the bigwigs assemble in Canberra for the pow wow previously known as the Productivity Roundtable, former NSW Building Commissioner David Chandler dropped us a note.
He said that “in the sea of noise” to wind back standards and regulations, there were opportunities to make both more efficient, but that there should be “no relaxation of their intent under the guise of lifting productivity”.
“That would run the risk of undermining growing public confidence in new housing stock and the performance of regulators, especially in the eastern states,” he said.
“These are nationally important issues as our industry is under increasing pressure to become more efficient, resilient, and to deliver much needed housing.
“Very few voices in the ‘take the foot off the pedal’ debate seem invested in ensuring that standards reinforce public confidence in new housing supply. “They offer no measurable insights into the how.”
But the “how” conversation must prevail, he continued, and it won’t come from “some of the shallow arguments from most of those who lack real subject matter expertise”.
“Beware of wolves in sheep’s clothing.”
AGL is good, but not good enough
The Australasian Centre for Corporate Responsibility (ACCR) said AGL’s Climate Transition Action Plan, released on Wednesday, showed green shoots but “continues to lack the ambition and pace that investors expect from Australia’s largest energy generator and greenhouse gas emitter”.
The plan is for:
- a new Scope 3 target for a 60 per cent reduction in greenhouse gases by the end of FY35 based on the FY19 baseline, and ceasing operation of Loy Yang Mine by the end of FY35
- Coal plant closures: Bayswater by 2033 (during FY34) and Loy Yang A by the end of FY35.
- Interim renewables and firming target for FY30 has been increased from 5GW to 6GW (with at least 3GW of grid-scale batteries)
- Commitments to positive advocacy, including monitoring industry associations
Brynn O’Brien, the organisation’s executive director, said, “As Australia’s largest electricity generator, AGL should be driving forward the buildout of bulk renewable power. We have not seen a real increase in ambition in this climate plan – the 2035 target of a modest 12GW remains unchanged, with just an incremental increase of 1GW in the interim target by 2030, which is really just a commitment to build some of it sooner.
Alienta Energy and NRN launch VPP program
Energy retailer Alienta Energy has partnered with climate tech startup NRN (National Renewable Energy) to deliver a solar battery and virtual power plants (VPP) package to consumers – offering solar and batteries at no additional cost.
The product, called SolarTogether, sees NRN use its platform to supply and coordinate solar and battery systems to consumers at no upfront cost, financing or repayments.
Customers can utilise this program to enjoy lower supply charges and choose to purchase the solar and batteries at any time or take ownership after 12 years. The startup will also operate the VPP to maximise value for consumers and the grid.
The startup is now rolling out across New South Wales and hopes to expand into Victoria and Queensland in the coming months after a successful pilot with 50 customers last year.
Deakin partners on textile recycling initiatives
Deakin University’s Recycling and Clean Energy Commercialisation Hub (REACH) has partnered with textile recycling company Samsara Eco to advance its patented textile breaking enzyme technology.
The university will offer expertise in advanced chemical analysis and polymer processing to help the company find further recycling solutions for additives such as dyes, finishes and coatings present in textile waste.
The company’s current technology allows enzymes to break down materials such as synthetic fibres, nylon 6,6 and polyethylene terephthalate (PET) into their original monomers, to be reused in new “virgin quality” products.
NSW clean energy tech recipients announced
If you missed it, the NSW government has announced the 13 recipients of its $26.2 million Clean Technology Innovation grants, which are part of a larger $275 million Net Zero Manufacturing Initiative.
Among the winners are 5B Holdings, winning $2.5 million, which earlier this year also won funding from ARENA’s solar sunshot program for its fast solar rollout tech named Maverick. Also notable is Kardinia Energy, winning more than $2.25 million for its lightweight and flexible printed solar, and more recently known for providing its rock band clients, Coldplay, the technology to power the band’s events. The full recipient list is here.
What we’re reading
A coalition forms over the US Energy Star
The US Energy Star ratings, which rate both consumer electronics and commercial real estate energy use, are yet another victim on the firing line from Trump’s cuts to climate and sustainability reporting.
And now an unlikely coalition consisting of bakers, builders, hot tub lobbyists and even chemical companies is trying to stop the termination of the program.
Grist noted that an “unexpected” coalition of industry groups generally against climate progress has formed to defend the rating system. This includes the American Chemistry Council and the National Association of Home Builders, the Spray Foam Coalition, the American Bakers Association, and the Pool and Hot Tub Alliance.
The chemistry association had previously fought against the Environmental Protection Agency’s regulation of power plants, the hot tub lobbyists had previously promoted natural gas use in homes, yet both are rallying with environmental groups such as the Sierra Club to defend the Energy Star. Read more here.
Private equity funds electrification
American-based private equity fund KKR (Kohlberg Kravis Roberts & Co) is investing $500 million into CleanPeak Energy in a commitment to the firm’s climate transition strategy. CleanPeak presented at our Festival of Electric Ideas webinar series.
The company targets rooftop panels and battery installations on shopping centres as well as commercial and industrial property, and was founded by chief executive and former energy investment banker at Citi, Philip Graham, alongside former head of strategy at Origin Energy, Jon Hare. It now operates 50 distributed generation sites across Australia, which include more than 140 megawatts of solar power systems and 35 megawatt-hours of batteries. KKR is also investing $US34 ($A52) billion into companies such as UK-based electric bus provider Zenobe, German energy service provider EGC and US solar and storage developer Avantus.