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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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Indonesia’s First Pumped Storage Hydropower Plant to Support Energy Transition

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The World Bank’s Board of Executive Directors today approved a US$380 million loan to develop Indonesia’s first pumped storage hydropower plant, aiming to improve power generation capacity during peak demand, while supporting the country’s energy transition and decarbonization goals.

“The Indonesian government is committed to reduce greenhouse gas emissions through, among others,  development of renewable energy, energy conservation, and use of clean energy technology. Emission reduction in the energy sector will be driven by new and renewable energy generation and application of energy efficiency,” said Arifin Tasrif, Minister of Energy and Mineral Resources of the Republic of Indonesia.

Over 80 percent of the power generated for the Java-Bali grid, which supplies electricity to 70 percent of the country’s population, comes from fossil fuels. A key measure to support Indonesia’s decarbonization agenda is the development of energy storage to enable integration of renewable energy into the grid. Pumped storage hydropower plays a crucial role in this approach.

The financing will support the construction of the Upper Cisokan pumped storage hydropower plant, to be located between Jakarta and Bandung, with an expected capacity of 1,040 MW. The facility will have significant power generation capacity to meet peak demand, provide significant storage capacity to enable a larger penetration of renewable energies and, because of its close location to two large demand centers, will alleviate increasing transmission loads on the grid. As a result, a more environmentally friendly and reliable supply of electricity will benefit consumers in Java and Bali.

“We are excited about this project as it will be the first of its kind for Indonesia. It represents a turning point for Indonesia’s decarbonization pathway. The World Bank will continue to support Indonesia in its efforts to achieve resilient, sustainable, and inclusive development that will benefit the people of Indonesia now and in the future,” said Satu Kahkonen, World Bank Country Director for Indonesia and Timor-Leste.

Pumped storage hydropower makes use of two water reservoirs at different elevations. At times of low electricity demand or when there is abundant generation from clean power sources, such as solar energy, power from the grid is used to pump water to the upper reservoir. Power is generated during peak demand, usually evening hours, as water moves down to the lower reservoir using a turbine, when electricity generation costs are high.

The project will help enhance the system flexibility and efficiency in balancing supply and demand, and therefore improve the reliability and quality of electricity services in Java and Bali. It also aims to support the government to integrate variable renewable energy into the Java-Bali grid, and to do so in an environmentally and socially sustainable manner.

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Iran determined to boost oil exports despite sanctions

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Iranian Oil Minister Javad Oji has said the Islamic Republic is determined to increase its oil exports despite the U.S. sanctions on the country’s oil industry, adding that the use of oil sanctions as a “political tool” would harm the market.

“There is strong will in Iran to increase oil exports despite the unjust and illegal U.S. sanctions; I promise that good things will happen regarding Iran’s oil sales in the coming months,” Oji told the state TV.

As reported by IRIB, Oji noted that Iran can barter its crude oil for goods or even for services and investment not only in the oil industry but also in other sectors as well.

“Oil sales have dropped dramatically since the imposition of unjust sanctions, but this capacity exists in the Oil Ministry and all the industry’s departments to increase oil sales,” the minister said.

Iranian oil exports have plunged under U.S. sanctions, which were reimposed three years ago after Washington abandoned Tehran’s 2015 nuclear deal with six powers.

“Iran will return to its pre-sanctions crude production level as soon as U.S. sanctions on Iran are lifted,” Oji said.

“We are against using oil as a political tool that would harm the oil market.”

Since April 9, Tehran and six world powers have been in talks to revive the nuclear pact. The sixth round of the negotiations adjourned on June 20. The next round of talks has yet to be scheduled.

Oji said Iran backed a decision made by the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, on Wednesday to stick to a policy from July of phasing out record output cuts by adding 400,000 barrels per day (bpd) a month to the market.

Iran has been gradually boosting crude oil production to get ready for a strong comeback into the global market as the talks with world powers over the nuclear deal show signs of progress.

According to a Bloomberg report, National Iranian Oil Company (NIOC) officials have stated that the country’s oil fields are going through overhaul operations and connections with oil buyers are being re-established.

“In the most optimistic estimates, the country could return to pre-sanctions production levels of almost four million barrels a day in as little as three months,” the report published in May stated.

EF/MA

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IRENA and IAEA to Help African Union Develop Continental Power Master Plan

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The International Renewable Energy Agency (IRENA) and the International Atomic Energy Agency (IAEA) have been selected as modelling partners for the development of the African Continental Power Systems Master Plan (CMP). The initiative is led by the African Union Development Agency (AUDA) with the technical and financial support of the European Union (EU), and is aimed at establishing a long-term continent-wide planning process. The two agencies’ modelling tools will be the official planning models utilised in this initiative.

African energy ministers tasked the African Union Development Agency (AUDA-NEPAD) to lead the development of the master plan. Following a two-year consultation process coordinated by the EU Technical Assistance Facility (TAF) for Sustainable Energy, the five African power pools selected IRENA and the IAEA to support the continent’s modelling and capacity needs. The two organisations will lead the development of an electricity master plan that promotes access to affordable, reliable and sustainable electricity supplies across the continent.

A unified transmission network in Africa will enable inter-country trade between African countries as well as cross-continental trade with Europe and Asia, via existing links in North Africa, allowing African countries to source electricity from a wide-range of competitive, clean energy sources. It will also create beneficial socioeconomic opportunities by increasing interregional access to affordable African renewable energy resources within the continent, fostering investment opportunities, job growth and ultimately contributing to the region’s sustainable development.

The urgency of this task is underlined by the prospect of carbon lock-in. Existing plans in Eastern and Southern African countries include more than 100 GW of new coal-fired power plants by 2040 – the development of which would triple carbon dioxide (CO2) emissions to 1,200 megatonnes (Mt) per year. Under the CMP, power generation options will be reviewed and re-considered to maximise socioeconomic benefits while simultaneously minimising emissions.

IRENA and the IAEA, as modelling partners, will support African stakeholders with the development of the CMP identifying surplus and deficit regions/countries in Africa in terms of electricity generation and demand. This will help identify the most cost-effective ways of expanding clean electricity generation and transmission infrastructure across the African continent.

IRENA and IAEA will also train AUDA-NEPAD staff and Power Pool experts on the use of the modelling tools, including IRENA’s System Planning Test (SPLAT) models using the IAEA’s Model for Energy Supply System Alternatives and their General Environmental Impacts (Message) tool, and support the team in the development of the CMP, ensuring knowledge transfer and capacity building.

The MESSAGE-SPLAT capacity expansion models are a key component and product of IRENA’s support to African countries. Built using the MESSAGE software, the agency has developed SPLAT models covering 47 African countries across the five African power pools. They have been used in IRENA’s capacity building programmes on energy planning across the continent.

The IAEA and IRENA cooperate on energy planning with a view to enhancing the effectiveness and impact of capacity-building efforts by joining the complementary competencies of the two organisations. The inter-agency cooperation was formalized through a Practical Arrangement, signed by both organizations on 2 November 2016, and extended for another three years in 2019.

IRENA

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