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42 Global Organizations Agree on Guiding Principles for Batteries to Power Sustainable Energy Transition

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Batteries will be a major driver in reducing the carbon footprint of the transport and power sectors through the use of electric vehicles and renewable energy. To help companies and governments, the Global Battery Alliance designed 10 guiding principles for the creation of a sustainable battery chain by 2030.

These principles are intended as the first step in a responsible, sustainable battery value chain as set out in the Global Battery Alliance’s “A Vision for a Sustainable Battery Value Chain in 2030”. Implementing commitments will be based on existing standards such as the Organisation for Economic Co-operation and Development (OECD)’s Due Diligence Guidance and economically viable considerations for a circular and low carbon economy.

At the Annual Meeting 2020, 42 organizations, including businesses from mining, chemicals, battery, automotive and energy industries, representing annual revenue of close to a trillion dollars, along with international organizations and global NGOs, have agreed on the 10 guiding principles.

They include maximizing the productivity of batteries, enabling a productive and safe second life use, circular recovery of battery materials, ensuring transparency of greenhouse gas emissions and their progressive reduction, prioritizing energy efficiency measures and increasing the use of renewable energy, fostering battery-enabled renewable energy integration, high quality job creation and skills development, eliminating child and forced labour, protecting public health and the environment and supporting responsible trade and anti-corruption practices, local value creation and economic diversification.

“We all need batteries to power the clean revolution. However, we must ensure violations of human rights do not occur anywhere in the value chain, that local communities benefit and that battery production is sustainable. These guiding principles are an important first step to build a value chain that can deliver on this promise while supporting societies and economies at the same time”, said Dominic Waughray, Managing Director, World Economic Forum.

Organizations supporting the realization of a battery value chain that meets these principles include AB Volvo, African Development Bank, Amara Raja Batteries , Analog Devices, Audi, BASF, Bayerische Motoren Werke (BMW), Cadenza Innovation, China EV100, Clarios, ClimateWorks Foundation, Enel, Envision Group, Eurasian Resources Group (ERG), Everledger, Fairphone, Fundacion Chile, Good Shepherd International Foundation, Greentech Capital Advisors, Groupe Renault, Honda, IMPACT, International Institute for Environment and Development (IIED), International Justice Mission (IJM), Johnson Matthey, International Lead Association (ILA), Leaseplan, Office of the President of the Democratic Republic of the Congo (DRC), OPTEL Group, Pact, Pure Earth, Responsible Battery Coalition, SGS, SK Innovation, Sociedad Química y Minera de Chile SA (SQM), The Faraday Institution, The World Bank Group, Trafigura, Transport & Environment (T&E), Umicore, United Nations Children’s Fund (UNICEF), the Volkswagen Group and the World Business Council for Sustainable Development (WBCSD). To realize the full ambition of these principles, the Global Battery Alliance is actively seeking the endorsement of additional organizations to ensure full participation throughout the battery value chain.

This alignment among key players in the battery market establishes the basis for a transparent accountability system. It will guide the development of a global digital battery information disclosure system referred to as the “Battery Passport”, which is designed to enable a transparent value chain, for example, with respect to human rights and the environmental footprint.

What the signatories say

“Je suis ravi d’annoncer que le Gouvernement de la République Démocratique du Congo soutient la Global Battery Alliance et ses dix principes directeurs. J’invite les membres de mon gouvernement à travailler avec l’Alliance afin d’établir une chaîne de valeur durable du cobalt. C’est indispensable pour permettre la transition énergétique.” Felix Tshisekedi, President of the Democratic Republic of the Congo (DRC)

“Amara Raja is fully committed to support the transition to a carbon neutral energy footprint across the globe and recognizes that advanced battery technologies have a critical role to play to enable and accelerate this transition. Amara Raja is delighted to be part of the Global Battery Alliance efforts to drive the transition and endorses the ‘Principles and Commitments to Realize the 2030 Vision’. The principles and commitments as articulated by the GBA provide a framework for implementation of a scalable and sustainable approach for faster adoption of smart energy solutions for a greener future.” Vijayanand Kumar Samudrala, Chief Executive Officer, Amara Raja Batteries

“Analog Devices strongly believes that technology is one of the key enablers for a sustainable, circular and ultimately regenerative economy. Batteries will play a key part in enabling this shift as the world accelerates towards renewable energy sources. It is vital that the value chain forming around batteries is both sustainable and just across the entire lifecycle of the battery, from extraction and formation to second life and recycling. At Analog Devices, we support the work of the Global Battery Alliance and fully endorse the 10 principles for a sustainable value chain.” Vincent Roche, Chief Executive Officer, Analog Devices

“For Audi, batteries are key on our way to carbon neutral mobility. To ensure that this technology is thoroughly sustainable, we welcome and support the GBA initiative and our common principles. We believe in the power of joint collaboration across all stakeholders in the entire value chain of batteries and therefore encourage others to join the GBA as well. Audi is striving for a reliable “sustainability performance seal”, carried out by robust stakeholder engagement, which stands as a global reference for clean and ethically produced batteries.” Hildegard Wortmann, Member of the Board of Management, Sales and Marketing, Audi

“These guiding principles are a milestone for the Global Battery Alliance to promote a sustainable and responsible battery value chain. As a founding member of the alliance, BASF welcomes a joint vision and concrete actions, such as the planned battery passport.” Martin Brudermüller, Chairman of the Board of Executive Directors of BASF and Co-Chair of the Global Battery Alliance

“An efficient, transparent, sustainable global value chain is vital to ensuring that the battery industry continues to meet unprecedented demand in an innovative and socially responsible manner. The guidelines put forth by the Global Battery Alliance provide a thoughtful and actionable approach for ensuring that. By bolstering the role that energy storage plays in combatting climate change while lifting underserved populations up out of energy poverty, the GBA’s efforts can benefit our whole society.” Christina Lampe-Onnerud, Founder and Chief Executive Officer, Cadenza Innovation

“The 10 principles of the Global Battery Alliance have far-reaching significance for the development of the global battery industry, and will play a guiding role in the orderly and sustainable development of the battery value chain. As a think tank and exchange platform for China’s electric vehicle industry, China EV100 has been committed to conducting research and cross-industry exchanges on the entire value chain and recycling of the battery industry for the past six years. We are willing to work with GBA to help the energy transition and decarbonization of the transportation industry along with the sustainable development of the electric vehicle and battery value chain.” Liu Xiaoshi, Executive Deputy Secretary-General, China EV100

“When combined with zero-carbon electricity from sources like wind and solar, batteries can cleanly power our vehicles, homes and businesses, reducing climate pollution and advancing sustainable development. As an organization dedicated to ending the climate crisis, the ClimateWorks Foundation supports the work of the GBA and applauds its efforts to improve battery supply chain sustainability in the mining and extraction industries and ensure greater transparency and traceability.” Charlotte Pera, President and Chief Executive Officer, ClimateWorks Foundation

“We support these principles as they are fully aligned with our strategy and with commitments we have already made to the environment, society, human and labour rights. The collaboration of the whole value chain to sustainably supply battery storage systems is key to accelerate the energy transition. As the world’s leading private operator of renewables and networks, we have implemented tangible actions to foster a circular and sustainable value chain that is respectful of human rights.” Francesco Starace, Chief Executive Officer, ENEL

“As we convene for the 50th anniversary Davos meeting, the launch of the 10 key principles will help bring the Alliance one step closer to unlocking the potential of batteries to power sustainable development. We are aiming to ensure that the vast benefits to the global economy never come at the cost of the most vulnerable communities. A key focus for ERG is working with all Alliance members to eradicate child labour within the battery value chain.” Benedikt Sobotka, Chief Executive Officer of Eurasian Resources Group and Co-chair of the Global Battery Alliance

“At Everledger, we believe technology is one of the greatest platforms for change towards a low carbon economy. We not only support the principles of the GBA, but also enable the global battery value chain to achieve ever increasing levels of transparency for sustainability efforts.” Leanne Kemp, Chief Executive Officer, Everledger

“It is time we as an industry make a joint effort in cleaning up our battery supply chains. We welcome the GBA principles as an important step towards this.” Monique Lempers, Director Impact Innovation, Fairphone

“As non-corporate members of the Global Battery Alliance, we endorse the GBA principles for the development of an economically, socially and environmentally sustainable battery value chain. Aligning our diverse global collaboration platform around the principles – placing the Sustainable Development Goals and the critical connectivity of human rights and development at the heart of the value chain – is an important step forward for the GBA. We are committed to monitoring and implementing joint programmes to deliver concrete progress against the principles, and developing clear and transparent measuring tools, as we continue to support this critical effort.” Joint statement from Cristina Duranti, Director, Good Shepherd International Foundation; Joanne Lebert, Executive Director, IMPACT; Gary A. Haugen, Chief Executive Officer, International Justice Mission; Karen Hayes, Vice-President, Mines to Markets, Pact; Charlotte Petri Gornitzka, Assistant Secretary-General and UNICEF Deputy Executive Director, Partnerships, United Nations Children’s Fund (UNICEF)

“We fully endorse the Global Battery Alliance’s bid to develop a responsible and sustainable battery value chain. The world is going to need many more batteries using different chemistries and technologies as demand for energy storage continues to grow and we are encouraged that the 10 guiding principles make reference to lead-based batteries that will continue to play a significant role in achieving the UN sustainability goal to provide access to clean and affordable energy for all. The GBA’s aim to foster the creation of a sustainable battery value chain by 2030 is fully aligned with lead battery industry’s material stewardship initiative and our own guiding principles.” Andy Bush, Managing Director, International Lead Association

“Johnson Matthey is very pleased to support the 10 principles of the GBA, which underpin our company’s vision to build a cleaner, healthier world. This a key milestone for the battery community as we align to deliver common objectives that will power a sustainable energy transition in a way that safeguards and benefits the whole supply chain and the planet. JM is fully committed to working together with the GBA on these critically important efforts.” Robert MacLeod, Chief Executive Officer, Johnson Matthey

“Electric vehicles and the batteries that power them are central to the fight against climate change. LeasePlan therefore fully supports the work of the Global Battery Alliance to ensure we have safe, clean and ethically produced batteries. Collectively, we are determined to build a 100% sustainable battery value chain and ensure the industry maintains its social licence to operate.” Tex Gunning, Chief Executive Officer, LeasePlan

“We welcome the adoption of GBA principles that explicitly refer to the need for human rights standards in the battery supply chain. To effectively address child labour and other human rights issues, formalization of artisanal and small-scale mining (ASM) sites is key. The GBA is ideally positioned to pool knowledge and resources to develop ASM formalization standards that can be implemented in the DRC.” Michael Posner, Director of the NYU Stern Center for Business and Human Rights and Dorothée Baumann-Pauly, Director of the Geneva Center for Business and Human Rights

“At OPTEL, we are proud to use our traceability expertise to contribute to the achievement of the GBA principles towards a sustainable battery value chain. This project fits perfectly with our mission of using innovative technologies to create a more sustainable world and we recognize all the organizations jointly involved in this effort.” Louis Roy, President, OPTEL GROUP

“The Global Battery Alliance is moving the needle with respect to batteries. Health problems from battery recycling (especially lead-acid batteries) are ridiculously enormous. We need to avoid a similar problem with lithium batteries, as their boom continues. GBA is the group that can make this happen.” Richard Fuller, President, Pure Earth

“Batteries are becoming a significantly more important part of our energy infrastructure, economy and national security. A key part of sustaining our growing, battery-reliant energy infrastructure is to conserve human and natural resources. We at the Responsible Battery Coalition are proud to join with our fellow members of the Global Battery Alliance in supporting these principles and working together in creating a sustainable, humane and circular battery value chain.” Steve Christensen, Executive Director, Responsible Battery Coalition

“SK Innovation fully supports the 10 guiding principles and the GBA’s ambition to build sustainable global battery value chain by 2030. This vision and timeframe dovetails with SK Innovation’s ‘Green Balance 2030’ initiative, which will accelerate our transition to a low carbon economy. Moreover, we believe accurate measurement is the very first step in building momentum and credibility for a sustainable value chain. SK group-wide socio-environmental impact assessments demonstrate that our growing battery business is leading the way with our decarbonization efforts.” Jun Kim, President and Chief Executive Officer, SK Innovation

“In the last 25 years SQM has been operating and optimizing its sustainable production process for lithium. SQM takes its responsibility seriously in protecting the environment and ensuring the well-being of its neighbouring communities. As a key element to achieve the goals of the Paris Agreement, today we are taking another step, making a public and transparent commitment to the principles of the Global Battery Alliance of the World Economic Forum to ensure sustainable supply of lithium. SQM is proud to endorse the GBA principles of the World Economic Forum. As a leading lithium producer, we believe this is major step towards realizing a sustainable battery supply chain.” Ricardo Ramos, Chief Executive Officer, SQM

“We must diligently work together and support governments like that of the DRC in their efforts to address shortcomings in the Lithium-ion value chain. These challenges cannot be wished away. The adoption of the Global Battery Alliance principles provides a welcome foundation in pursuit of the responsible sourcing of materials such as cobalt, which are essential for the transition to low carbon economies.” Jeremy Weir, Executive Chairman and Chief Executive Officer, Trafigura

“Rechargeable Batteries are the best technology to achieve zero emissions mobility and underpin climate neutral economy of the future. The Global Battery Alliance should accelerate the transition to sustainably sourced and produced batteries by enabling full traceability along the supply chain and implementing the Battery Passport. GBA’s members include the world’s largest mining and smelting companies so it is in their power to guarantee responsible, safe and inclusive extraction of battery metals in developing countries.” Julia Poliscanova, Director, Transport & Environment’s Clean Vehicles and E-Mobility Director

“I am very pleased that after over two years of intense work among many key stakeholders of the battery value chain we have reached consensus on 10 challenging principles. In particular, the principles call for ‘immediately and urgently eliminating child and forced labour’ from the batteries. Indeed, we cannot accept that the pursuit of climate neutrality should in any way involve child labour. Therefore (along with the immediate elimination of child labour) I am prepared to pledge significant funds to support the work of a consortium of NGOs in order to ensure that children are out of the mines and I invite other members of the Global Battery Alliance to join me for the creation of this fund.” Marc Grynberg, Chief Executive Officer, Umicore

“At Volkswagen, our sustainability and social responsibility requirements go well beyond production and cover the entire value chain. We do not tolerate any infringements of environmental and social standards – this applies to the entire supply chain. That’s why we support the GBA and are committed to the 10 principles that were agreed today as a building block to safeguard human rights and economic development consistent with the UN Sustainable Development Goals.” Ralf Pfitzner, Head of Sustainability, Volkswagen Group

Sustainable batteries are a must for our society to thrive within planet boundaries. WBCSD welcomes the 10 principles for a sustainable value chain that protects human rights and accelerate the transition to carbon neutrality, and will continue to support the Global Battery Alliance members in their action towards the vision for a sustainable battery value chain by 2030”, Maria Mendiluce, World Business Council for Sustainable Development (WBCSD)

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AIIB’s USD60-M Solar Investment in Oman Supports Diversified Energy Mix

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The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a USD60-million loan to increase Oman’s renewable power generation capacity and reduce the country’s dependence on gas and other fossil fuels for electricity generation. This is AIIB’s first nonsovereign-backed financing in the country’s renewable energy sector.

The project is a 500-megawatt greenfield solar photovoltaic power plant in Ibri being developed by a special purpose company established by ACWA Power, Gulf Investment Corporation and Alternative Energy Projects Co. It is Oman’s first utility-scale renewable energy project to be connected to the grid. The total project cost is approximately USD400 million.

Oman’s sustained economic and population growth over the past decade has led to fast-growing electricity demand and put a strain on the existing power infrastructure. The country has one of the highest solar densities in the world, providing a great development potential for solar energy resources. Currently, almost all the installed electricity capacity in Oman is fueled by natural gas, leaving huge potential for renewable energy.

“AIIB’s investment will increase the availability of Oman’s renewable power generation capacity and contribute to filling the anticipated gap in peak demand,” said AIIB Vice President D.J. Pandian. “The project will also help the country move toward a more balanced and environmentally sustainable energy mix to ensure long-term energy sustainability.”

The project is in line with AIIB’s energy sector strategy in reducing the carbon intensity of energy supply and catalyzing private capital investment in renewable energy infrastructure. AIIB’s involvement will ensure the use of high environmental and social standards in the project.

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IEA support Luxembourg’s ambitious energy transition goals

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Luxembourg is targeting a sharp reduction in emissions by 2030, but new measures are needed to boost investment in renewables and energy efficiency, new IEA report says.

The International Energy Agency released its latest in-depth review of Luxembourg’s energy policies today, welcoming the country’s ambitions to shift to a low-carbon economy.

Luxembourg has shown positive signs in its efforts to move ahead with its clean energy transition, according to the report. While the country has enjoyed robust economic and population growth, its energy demand and greenhouse gas emissions have declined for much of the past decade, until they started to rise again in 2016, due to increased fuel sales to trucks in transit. The share of renewables in its energy supply has doubled since 2008.

“The Luxembourg government is committed to the goals of the Paris Agreement and has adopted ambitious energy sector targets, including reducing its greenhouse gas emissions by as much as 55% by 2030,” said Dr Fatih Birol, the IEA’s Executive Director. “The IEA is ready to support the government’s efforts to achieve these goals, starting with the recommendations contained within this report.”  

The report notes that Luxembourg faces challenges in achieving its energy objectives. The country’s energy supply is dominated by fossil fuels, and carbon dioxide emissions are rising since 2016. This trend is driven by higher fuel consumption in the transport sector, mostly from fuel sales to international freight trucks and commuters.

“It is encouraging that the government has embraced an electric vehicle initiative with the intention of reducing greenhouse gas emissions and fuel imports”, Dr Birol said. The initiative is targeting the deployment of 800 public charging stations for electric vehicles by 2020. The aim is for 49% of all vehicles registered in Luxembourg and 100% of the national bus fleet to be electric by 2030. These goals are supported by subsidies for electric vehicles, major investments to increase the level and quality of electrified public transport, the introduction of free use of almost all forms of public transport in March 2020, and gradual increases in excise duties on diesel and gasoline. The report calls on the government to evaluate how much existing transport policies contribute to its energy sector targets and formulate a set of coherent measures to achieve a sustained reduction in fuel demand.

Luxembourg has the highest share of electricity imports among IEA member countries, with imports covering nearly 90% of electricity demand in 2018. Luxembourg expects its electricity demand to rise as a result of a growing population and economy and the increasing electrification of the transport and heat sectors.

The IEA report notes that Luxembourg is undertaking actions on several fronts to ensure a secure supply of electricity. The country is aiming to increase domestic electricity generation to cover one-third of national demand by 2030, mostly from solar PV and wind. Luxembourg is also actively cooperating with neighbouring countries on energy security and is planning to strengthen its electricity grid to support additional imports and domestic renewable generation. The report recommends that infrastructure plans and processes should be aligned with renewable energy deployment and should facilitate smart grid technologies such as demand‑side response, batteries and other energy storage options.

Luxembourg has generous support programmes for energy efficiency and renewable energy, two of the pillars of clean energy transitions. However, the IEA report finds that the country’s low taxes on energy represent a barrier to the investments needed in energy efficiency and renewables to meet the government’s targets. The report calls for the gradual introduction of carbon pricing, which if done wisely, could stimulate the behavioural changes and investments required for the transition to a low-carbon energy system. The government has announced a plan to introduce a carbon price in 2021. 

“I strongly believe that both policy and regulatory reforms can help Luxembourg achieve a cost-efficient, equitable and sustainable pathway to meeting its ambitious energy transition goals,” said Dr Birol.

Because of the exceptional situation resulting from the COVID-19 coronavirus epidemic, the IEA and the government of Luxembourg agreed to launch the report online rather than via a press conference.  

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Battery Storage Paves Way for a Renewable-powered Future

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photo:IRENA

Battery storage systems are emerging as one of the key solutions to effectively integrate high shares of solar and wind renewables in power systems worldwide. A recent analysis from the International Renewable Energy Agency (IRENA) illustrates how electricity storage technologies can be used for a variety of applications in the power sector, from e-mobility and behind-the-meter applications to utility-scale use cases.

Utility-scale batteries, for example, can enable a greater feed-in of renewables into the grid by storing excess generation and by firming renewable energy output. Furthermore, particularly when paired with renewable generators, batteries help provide reliable and cheaper electricity in isolated grids and to off-grid communities, which otherwise rely on expensive imported diesel fuel for electricity generation.

At present, utility-scale battery storage systems are mostly being deployed in Australia, Germany, Japan, United Kingdom, the United States and other European countries. One of the larger systems in terms of capacity is the Tesla 100 MW / 129 MWh Li-ion battery storage project at Hornsdale Wind Farm in Australia. In the US-State of New York, a high-level demonstration project using a 4 MW / 40 MWh battery storage system showed that the operator could reduce almost 400 hours of congestion in the power grid and save up to USD 2.03 million in fuel costs.

In addition, several island and off-grid communities have invested in large-scale battery storage to balance the grid and store excess renewable energy. In a mini-grid battery project in Martinique, the output of a solar PV farm is supported by a 2 MWh energy storage unit, ensuring that electricity is injected into the grid at a constant rate, avoiding the need for back-up generation. In Hawaii, almost 130 MWh of battery storage systems have been implemented to provide smoothening services for solar PV and wind energy.

Globally, energy storage deployment in emerging markets is expected to increase by over 40% each year until 2025.

Figure 1. Stationary battery storage’s energy capacity growth, 2017-2030

Currently, utility-scale stationary batteries dominate global energy storage. But by 2030, small-scale battery storage is expected to significantly increase, complementing utility-scale applications. 

The behind-the-meter (BTM) batteries are connected behind the utility meter of commercial, industrial or residential customers, primarily aiming at electricity bill savings. Installations of BTM batteries globally is on the rise. This increase has been driven by the falling costs of battery storage technology, due to the growing consumer market and the development of electric vehicles (EVs) and plug-in hybrid EVs (PHEVs), along with the deployment of distributed renewable energy generation and the development of smart grids. In Germany, for example, 40% of recent rooftop solar PV applications have been installed with BTM batteries. Australia aims to reach one million BTM batteries installations by  2025, with 21 000 systems installed in the country in 2017. 

Figure 2. Services provided by BTM battery storage systems

Overall, total battery capacity in stationary applications could increase from a current estimate of 11 GWh to between 180 to 420 GWh, an increase of 17- to 38-fold.

Read IRENA’s full Innovation landscape briefs on Utility-scale batteries and Behind-the-Meter batteries

Find more information about enabling technologies in IRENA’s Innovation Landscape briefs: Enabling Technologies

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