Archives des New Energies - The Bridge Tank

The Bridge Tank: US-China climate talks should not forget the Global South – CGTN Dialogue

Posted on 2 August 20232 August 2023 by the_bridge_tank

Following the restart of China-U.S. climate talks and the three-day visit of U.S. Climate Envoy John Kerry to Beijing mid-July, Joel Ruet joined CGTN’s Xu Qinduo on “Dialogue” to discuss the importance of these talks between the two largest economies & greenhouse gas emitters on the planet and address some of its priority topics. From carbon emissions reduction to the acceleration of climate finance, the Global South must imperatively be involved in global climate action, Joel Ruet stressed. An important discussion to rewatch here.

The discussion was also joined by Chinese environmentalist Ma Jun, Director of the Institute of Public & Environmental Affairs and U.S entrepreneur Brandon Andrews, former Hill staffer.

Stressing the importance of these talks, Ma Jun highlighted the impact of both China and the U.S. in global GHG emissions, which “put together […] is nearly half of the global total.” Echoing this idea, Joel Ruet noted that there were two stringent issues which the two countries needed to address, “the first one is the emissions […], the second one is climate finance, which has to be accelerated,” notably towards the Global South.

1. Cutting emissions

As U.S. Climate Envoy John Kerry stressed the need for China to decarbonize the power sector, cut methane emissions, and reduce deforestation, Ma Jun put China’s evolution and its goals for emissions to peak before 2030 and for carbon neutrality before 2060 into perspective.

“China is going through a massive industrialisation and urbanisation. Unlike Western countries which have naturally peaked their emissions and try to bend the emission reduction curve faster, China has not completed its industrialisation and urbanisation.”

Ma Jun, Director of the Institute of Public & Environmental Affairs

Still, China’s coal consumption has remained relatively stable since 2013, after having nearly tripled between 2000 to 2011. “China’s renewable energy target set for 2030 will be achieved by 2025” and its “EV targets for 2025 have been surpassed last year,” Ma Jun added.

Reacting to this assessment, Joel Ruet pointed out a twofold challenge, i.e. “scaling up those renewable energies that work and […] preparing the energies of the future like green hydrogen, for which we need research and an industry.”

Through the example of hydrogen, Mr Ruet reminded the audience that renewable energies produce electricity, which is only one form of energy, the others being solid (e.g. coal), liquid and gas. According to Joel Ruet “China will be able to gradually exit from coal only if it mobilizes the other sources of energy,” i.e. liquid and gas. On gas, the world therefore needs “a global alliance between China, the US and Europe to develop and invest in those technologies which are not yet mature for the market, mainly on green hydrogen.”

2. Climate finance

While traditional finance very much relies on assets which are either in the country of origin or in the global economy, connected to trade, Mr Ruet stressed that developing green finance will be achieved through “land restoration and carbon sinks through forests in Africa, Borneo Forest, Asia, Latin America and all around the world. The underlying factors of those assets are widespread, making it much more an issue of political economy and of involving the Global South in building this finance. Green finance will have to be much more collaborative than previous financial models.”

“Both China and the US have an edge in climate finance. It will be very important for these two poles of climate finance in the world to cooperate rather than compete.”

Joel Ruet, Chairman, The Bridge Tank

According to Ma Jun, China has indeed a lot to offer in terms of innovative financial models to face climate change.

China’s experience with solar power has seen the country develop “micro financing arrangements which allow rural households to take advantage of their rooftop to get clean energy and make money out of it.”

Combining “poverty relief and rejuvenation the countryside,” this model of micro-financing and rooftop solar panels “could be applied to other parts of the world and synergized to achieve the SDGs,” Ma Jun concluded.

From the curbing carbon emissions to bolstering climate finance, China-US climate talks must involve and support the Global South for international climate action to be both effective and inclusive.

Rewatch the show

A conversation with François de Rugy & the Ambassador of Kazakhstan on energy and France-Kazakhstan relations

Posted on 11 July 202324 July 2023 by the_bridge_tank

On 30 June 2023, Joël Ruet sat down with former Minister of State, Minister for the Ecological Transition and Solidarity, and former President of the French National Assembly, François de Rugy, and the current Ambassador of Kazakhstan to France, Gulsara Arystankulova, to discuss bilateral relations between France and Kazakhstan and the prospects for energy and technology partnerships between the two countries.

This discussion was part of a symposium held at the French Senate on the theme of “Energy sovereignty for Europe and France: what solutions, what partners?” The Bridge Tank’s recent work in Kazakhstan is best exemplified by our contribution to the development of an auction mechanism for renewable energy in 2021 and the highlighting of the challenges faced by foreign investors in the country.

Future ambitions and cooperation

During her address, Ambassador Gulsara Arystankulova emphasised the profound relationship that links France and Kazakhstan, and the close cooperation between the two countries in the energy sector. In November 2022, the President of Kazakhstan, Kassym-Jomart Tokaïev, was notably welcomed to Paris by President Macron. This cooperation has been particularly strengthened since the start of Russia’s invasion of Ukraine, with Kazakhstan offering a key alternative to Russian oil and gas. With its wealth of raw materials and as the oil giant of Central Asia, the country plays a key role in Europe’s energy supply and will be a central player in the continent’s energy future.

For despite its status as an oil giant, Kazakhstan is pursuing an ambitious energy transition strategy aimed at gasifying its energy mix and achieving 50% renewable energy by 2050. To meet the supply and interconnection challenges posed by the country’s size, Kazakhstan is betting on a process of energy decentralisation based on state-subsidised green energy mini-systems.

Kazakhstan’s ambition to be carbon neutral by 2060 is underpinned by considerable assets. With its vast open spaces, abundant sunshine and rare earth resources, the country offers great potential for the development of renewable energies. French groups are already positioning themselves in the country, such as TotalEnergies, which has launched a 1GW onshore wind farm project in the Zhambyl region of southern Kazakhstan, in partnership with the National Wealth Fund Samruk-Kazyna and the National Company KazMunayGas.

Partnerships and issues of sovereignty

According to Joël Ruet, there are many opportunities for not only energy cooperation but technical and technological cooperation between France and Kazakhstan. The world’s leading producer of uranium, Kazakhstan supplies the uranium needed to run France’s nuclear power plants, notably through a close partnership with French nuclear giant Orano.

As the third largest foreign investor in Kazakhstan, France has every interest in positioning itself to generate new partnerships and launch new industries in the country, as well as continuing to develop its know-how and human resources, particularly in the nuclear and hydrogen sectors. Cooperation between France and Kazakhstan cannot therefore be limited to its energy component and to the supply of raw materials. This cooperation must bolster its technical and technological component in order to develop joint research, knowledge and innovation in the sector.

In the context of these partnerships, it is important to consider energy in its various forms, not only through the issue of electrification but also by taking into account energy in its liquid and gaseous forms, which represent a significant proportion of the energy mix.

Placing this observation in the context of French energy sovereignty, François de Rugy emphasised that energy sovereignty is not just a question of electricity, but of oil and gas – resources that, in France’s case, are almost entirely imported. To ensure security of supply, France will therefore need to diversify sources of supply, but also electrify uses by decarbonising transport, heating and industry.

In recent years, however, France has been faced with a new challenge resulting from the declining availability of nuclear power plants due to maintenance and declining production capacity. According to François de Rugy, it is therefore crucial to invest in both renewable energies and the renewal of France’s nuclear power plants, using France’s strengths and expertise in these areas.

The evolution of Kazakhstan’s energy sector undoubtedly offers great potential for cooperation with France and Europe. Although the country currently supplies fossil fuels and raw materials to the Old Continent, it will be an essential partner in the energy transition and in the development of renewable and low-carbon energy sources.

Policy Brief – How China came to dominate the global EV lithium-ion battery value chain: Lessons and opportunities for Africa

Posted on 27 June 202327 June 2023 by the_bridge_tank

This policy brief was written by Xieshu WANG, Senior Expert, Finance, Resources and Mobility, The Bridge Tank, and was first published by the Centre for Business and Development Studies, Copenhagen Business School Policy Brief No. December 2022. For the original publication, click here.

The electrification of vehicles is accelerating and the global automotive industry is under full transformation. China has become an indispensable partner for EV makers as the only country that has succeeded in building a complete and competitive industry value chain of EV lithium-ion batteries. Top-down government-led policymaking has been an important driver; bottom-up firm-level vertical integration strategy and investments have effectively created a closed-loop supply chain. Africa is still at an early stage in this mobility transition. But with its rich deposits of minerals and potential markets, it can become a key player in the global EV value chain, if a favourable ecosystem for the fast uptake of EV and related green businesses could be developed in time.

Key points:

Government-led policymaking, constant adjustments, and temporary infant industry protection policies have been some of the main drivers of the fast-growing EV industry and the lithium-ion battery sector in China.
Many Chinese firms deploy a strategy that can be defined as “specialised vertical integration”, i.e., actively entering related upstream and/or downstream segments within the EV lithium-ion battery supply chain, while continuing to reinforce their existing capacity in the original segment of the value chain, which serves as an expansion base.
With the soaring demand for minerals for batteries and EVs, Africa, with its rich deposits of lithium, copper, cobalt and other minerals, could become a key player in the global EV value chain.
Designing an EV promoting regulatory framework, applying incentive policies, & developing government-led R&D programs are important starting points to attract technologically leading MNEs in the EV value chain, encourage local startups and develop competitive industrial clusters. Fostering regional alliances and collaboration as well as developing industrial investment funds dedicated to firms along the EV value chain are other avenues of action that ought to be explored.

About the author

Xieshu WANG is Senior Expert, Finance, Resources and Mobility at The Bridge Tank and associated researcher at the Centre de recherche en Économie de l’Université Paris Nord (CEPN). She is a member of the Osservatorio sulle Economie Emergenti Torino (OEET) and has been a research fellow at the Interdisciplinary Institute for Innovation of Ecole Polytechnique de Paris and the Department of Economics and Statistics ‘Cognetti de Martiis’ of the University of Turin.

Concordia Europe Summit: European sovereignty, energy security & transatlantic relations

Posted on 21 June 202321 June 2023 by the_bridge_tank

On 15-16 June 2023, prominent decision makers from across Europe and the world gathered in Madrid, Spain for the 2023 Concordia Europe Summit. Two days of high-level closed-door conversations on the theme of Democracy, Security & Geopolitical Risk addressed some of the most pressing issues facing Europe, including cyber and energy security and diplomatic tools. The Bridge Tank was in attendance at the summit, represented by its president Joel Ruet and board member Raphael Schoentgen, who took part in a session on Europe’s renewable energy transition.

European sovereignty: Climate targets, autonomy & energy security

In the opening session of the Summit, Former European Commission (EC) President José Manuel Barroso testified to the intricate link between establishing binding climate targets and achieving energy security in Europe. Despite the challenges these climate targets represent, the EU 2020 Strategy was achieved by enlarging the problem from its environmental component to energy security, thereby winning over the EU’s new members as the EC launched infrastructure investments, he noted. This is an approach which has also been used by the US and India.

Putting the current discussion on the EU’s strategic autonomy in its geopolitical context, Othmar Karas, First Vice-President of the EU Parliament, noted that Russia’s aggression very much clinched the debate on the EU’s strategic autonomy and sovereignty, as well as on its defence strategy. Mr Karas stated that this debate was led “in a spirit of cooperation with NATO.”

Connecting this issue with environmental challenges, this was an opportunity for The Bridge Tank’s president Joel Ruet to engage with the EU Parliament’s First VP on the contribution of the European Green Deal in the EU’s strategic autonomy. Binding policies are indeed only beneficial inasmuch as they are embedded into larger trade-offs. It is therefore important that the EU & US do not lose cooperation for autonomy against illiberal regimes. In particular the short term subsidy war the two blocks are currently engaged in presents a worrying trend, Joel Ruet argued.

In the midst of the new rivalries arising, the next 10 years will be crucial in fine tuning the right PPP inventor/adopter and funding models, Will Roper, Former Assistant Secretary of US Air Force, contended.

During a session on “Pathway to Independence,” Ambassador Paula Dobriansky, former US Under Secretary of State for Global Affairs under President George W Bush, recalled that the US government was also very focused on the ramifications of the war in Ukraine. She acknowledged noticeable moves on nuclear energy and hydrogen in Europe, something also pointed out by other speakers who emphasized the need to work on the supply side of energy security to move towards Europe’s autonomy. This question was also addressed by our board member Raphael Schoentgen during a session on “Europe’s Energy Landscape: Alternatives for the Renewable Transition.”

Transatlantic Diplomacy & Security and the role of Latin America

The question of transatlantic cooperation was a central topic during the Summit. The benefits of a strong and sovereign Europe for the US were highlighted by different panellists, as partnerships benefit from both parties’ strength and confidence.

A session on “Transatlantic Diplomacy & Security: Strengths and Future Opportunities” gathered Former President of Colombia Iván Duque Márquez, Spain’s Minister for Foreign Affairs José Manuel Albares, US Ambassador to Spain Julissa Reynoso, and Radoslava Stefanova from NATO.

According to José Manuel Albares, the transatlantic relationship is very important in the context of Russian aggression. The US is a natural ally of the EU and the transatlantic agenda will be at the heart of Spain’s coming EU presidency, including on the technological agenda, Mr Albares stated. In this process moving towards a Europe of defence and greater integration, the EU also needs to consider having a decision making process based on a qualified majority and not unanimity, he added.

The central role of the transatlantic alliance is also acknowledged on the other side of the Atlantic, Ambassador Reynoso contended, adding that the current President of the United States has been the one to believe in it the most in recent history. Building on this, Radoslava Stefanova reminded the audience that NATO already provides an amount of integration in military systems and procurement based on member countries’ commitments and is therefore working towards convergence.

Iván Duque Márquez addressed the opportunities created by Spain chairing the EU in offering a unifying point between Latin America and the EU. Latin America’s ecosystems are essential in the fight against climate change and the continent is a key player in energy supply, be it oil, gas, and green hydrogen but also in securing the EU’s food security. Additionally, Latin America is facing similar questions to those raised within the EU with regard to how to best approach its relationship with China, particularly in matters of trade.

Iván Duque also raised these issues in a session alongside former President of Mexico Felipe Calderón in which they discussed Latin America’s role in Global Sustainability. Iván Duque particularly highlighted the hypocrisy that makes CO2 worth 50 dollars a ton in Brussels and 5 in the Congo Basin or the Amazon. Felipe Calderon called for a real implementation of the “polluter pays” principle and a reward for absorption at equal price across the planet. “Actually funding capital costs is more important than pledges,” he added.

Concordia Summit: Our board member Raphael Schoentgen discusses Europe’s Energy Transition

Posted on 16 June 202321 June 2023 by the_bridge_tank

As Europe grapples with high energy prices and disruptions in its energy supply following Russia’s invasion of Ukraine, working towards Europe’s energy transition has never been more pressing – but also full of new opportunities. At Concordia’s 2023 Europe Summit in Madrid, Spain, our board member Raphael Schoentgen, Founder & CEO, Hydrogen Advisors, took part in a panel discussion on “Europe’s Energy Landscape: Alternatives for the Renewable Transition.”

Alongside him on the stage to discuss this question were Ana Palacio, Former Minister of Foreign Affairs, Spain, Teresa Parejo, Director of Sustainability, Iberia Airlines, and German Alcayde, Board Member, HVR energy, who moderated the session.

Europe’s changing energy landscape

Drawing on his extensive experience in the energy sector, having previously been CTO & Executive Committee Member of ENGIE and now an expert and entrepreneur in the field of hydrogen, Raphael Schoentgen set the stage for the discussion by recalling that 80% of the energy used today in Europe is either solid, liquid, or gas. The energy transition should therefore not focus solely on electricity. Today, renewable energy sources represent 40% of Europe’s power grid. However, electricity accounts for only 20% of the energy we consume – making renewable energies only 8% of the total power consumption. Europe still imports 85% of its energy (including fuel). It will thus not be self-sufficient from one day to the other, Mr Schoentgen argued.

The largest energy need in Europe is heating, with 40% of the total consumption. This is mainly provided through gas. Then comes transport with 30%, which is mainly provided in liquid form. Mr Schoentgen therefore expressed his belief in the potential of hydrogen, as it provides both a good complement to green power and a substitute to natural gas, which can reinforce the production of biogas.

Encouraging development and adapting to a changing international environment

Raphael Schoentgen however issued a warning about imposing restrictions on the development of hydrogen in Europe, calling for decision makers to be concrete and non-dogmatic. The European Commission’s Delegated Act is for example making the development of hydrogen very complicated, as the focus on zero-CO2 and greenhouse gas emissions is too high.

Putting Europe’s efforts in comparison with international energy trajectories, Ana Palacio shared her analysis of the state of play in the United States. The Inflation Reduction Act of 2022 (IRA), signed into law in August 2022, contains $500 billion in new spending and tax breaks aiming – among other priorities – to boost clean energy. Ana Palacio noted that while the IRA was technology neutral, the European Green Deal did not display this technology neutrality as it rejected nuclear energy. This was confirmed by Raphael Schoentgen who only recently returned from Washington D.C., where he attended the release of the US hydrogen strategy.

Coming back to Europe’s energy imports, Ana Palacio highlighted Spain’s efforts not to make itself dependent on one country (as opposed to Germany’s dependence on Russian gas). Instead, Spain built a flotilla of energy terminals to remain relatively independent.

The Bridge Tank at BOAO Forum for Asia 2023: Advancing EU-China cooperation and energy transitions

Posted on 6 April 20236 April 2023 by the_bridge_tank

From 28 to 31 March 2023, The Bridge Tank, represented by its president Joël Ruet, took part in the BOAO Forum for Asia 2023, in Boao, Hainan, China. The Bridge Tank has taken part in the annual meeting of the “Chinese Davos” as a partner of the event since 2018. This year’s BOAO Forum was placed under the theme “An Uncertain World: Solidarity and Cooperation for Development amid Challenges.”

The Forum saw Joël Ruet take part in two sessions dedicated to the China-EU dialogue, with a closed-door CEO roundtable, and a panel session on global energy supply shocks, both concretely addressing energy transitions. The forum’s plenary session provided contributions from Chinese Premier Li Qiang, former UN Secretary General and now chair of the forum Ban Ki Moon, as well as Lee Hsien Loong, Prime Minister of Singapore, and Pedro Sanchez, Prime Minister of Spain, addressing future relations between China and the EU and the potential for partnerships.

China-EU CEO closed-door Dialogue

The roundtable which Joël Ruet took part in addressed questions and opportunities of cooperation and competition in a context of systemic rivalry. The session allowed for interaction between industry captains from France, Italy, Finland, Hungary, & Germany and their Chinese counterparts. These notably included:

Justin Yifu Lin, Dean of Institute of New Structural Economics, Peking University & former Chief Economist and former Senior Vice President of the World Bank
Li Zixue, Chairman and Executive Director, ZTE Corp
Zhang Yue, Chairman, BROAD Group
Li Yong, Chairman, Chinayong Investment Group
Joël RUET, Chairman, The Bridge Tank & Associate Researcher, Tech for Change Chair Ecole Polytechnique
Jorge Toledo, Ambassador of the European Union to China
Denis Depoux, Global Managing Director, Roland Berger
Norbert Csizmadia, President, John von Neumann University Foundation
Gianni Di Giovanni, Chairman, ENI China B.V. & Executive Vice President, ENI
Fabrizio Ferri, Head of Asia Pacific Region, Fincantieri

Joël Ruet’s participation to this roundtable allowed him to convey the current situation and opportunities in matters of energy transitions, particularly around nuclear power and hydrogen. Reflecting on current trends, Mr Ruet noted that in 2022, the EU’s transition found a winning long term hedging strategy based on geographically hedged gas instead of oil, with a 2030 horizon hedging against all fossil fuels.

On matters of climate finance, Joël Ruet argued that financial mechanisms had to go beyond carbon pricing and beyond mitigation finance. Instead, adaptation must be financed through cobenefits on agriculture, agro-forestry, CO2 fixation in soils and water preservation. This requires a joint effort to build a finance and banking derisking industry both at the level of public and commercial banks. China and the EU have a common interest in not only sharing ideas and models but also in building joint programs with least developed countries, Mr Ruet argued.

In a subsequent interview for China Business News, Joël Ruet stressed the importance of these types of roundtables, as “business decisions are based on this kind of relationship and understanding between people.”

Global Energy Supply Shock Roundtable

On March 30th, Joël Ruet sat down with senior Chinese and international executives and experts for a roundtable discussion on the current energy supply and demand structure. The discussion touched on how Russia’s invasion of Ukraine reshaped Europe’s energy supply landscape and how the global energy structure has evolved since, taking into account sanctions imposed on Russia and production restriction policies adopted by oil producing countries in the Middle East. The session also tackled how to maintain the stability of the international energy market and what the implications of these changes are on energy transitions efforts around the world.

The session moderated by ZHONG Shi, CGTN Anchor, was joined by :

Denis DEPOUX, Global Managing Director, Roland Berger
Gianni Di GIOVANNI, Chairman, ENI China B.V. & Executive Vice President, ENI
MENG Zhenping, Chairman, China Southern Power Grid
Joël RUET, Chairman, The Bridge Tank & Associate Researcher, Tech for Change Chair Ecole Polytechnique
Ernie THRASHER, Director, Xcoal Energy & Resources
ZHONG Baoshen, Chairman, Longi

According to Joël Ruet, the energy crisis is an opportunity to better understand the strengths and weaknesses of current energy structures, what is resilient, and what is most affected by these shocks. “We should turn the crisis into an opportunity,” Mr Ruet stated, adding that “in the energy transition, we must be inclusive and united.” What is stirking in the EU’s response over the last year is that it was not just a short term shock answer but that it paves the way to structural acceleration in energy transition, notably on pure renewables or gas. The fact that various countries have various energy strategies on nuclear as renewable or hydrogen uses or mobility engines hasn’t prevented quantum jumps in taxonomy and serves a positive complement thus hedging in European energy transitions.

Takeaways from the plenary session

BOAO Forum’s plenary session saw leaders from all around the world taking the stage to discuss current affairs. After stressing that “Russian agression has undermined the world order,” Singapore Prime Minister Lee Hsien Loong insisted that beyond building strong relations with China, Asian countries needed to mesh with one another, highlighting ASEAN’s centrality. Praising the RCEP and trans pacific dynamics, PM Lee called for Asia to always remain an open region building partnerships.

Pedro Sanchez, Prime Minister of Spain, stated that in its upcoming capacity assuming the presidency of the EU, Spain wants to contribute to peace and trust rebuilding. The country wants to focus on having a renewed approach to globalization, one mindful of its environmental footprint and stability, moving beyond sole cost preoccupations. The EU is therefore building a new green and digital industry and will defend its values and interests. China and the EU, though competitors, can also remain partners as far as the sovereignty of countries is respected and a level playing field on competition is upheld. According to PM Sanchez, China and the EU must remain partners economically but also and most importantly work together on reaching the objectives set in the Paris agreement, the SDGs, and providing finance for development and debt risks for developing countries.

Joel Ruet also attended Chinese Premier Li Qiang’s address to BOAO forum delegates. In his speech, Premier Li stated that “without peace, Asia won’t have a bright future,” before adding that “the many issues facing humanity must be addressed through consensus.” To do so, Li Qiang emphasized the role of BRICS countries in enforcing a multilateral rule of law, qualifying as “more just and equitable” than the existing UN system.

Li Qiang stated that “in an uncertain world, China’s way to prosperity is an anchor of certainty,” stressing the importance of China’s growth for developing countries in general and for Asia and the global economy. China’s path forward will “continue the effort of deepening the demand while structuring the supply side in a way that is favourable to foreign investment.”

It is however to be recalled that investments reached a low in 2022 due to China’s zero covid policy, which will have an impact on economic results in the coming two years and weakened foreign confidence in the Chinese market. This short term cycle will have to be absorbed, with medium term prospect looking more encouraging and serving as a transition while the demographic window of opportunity is closing.

Watch Joel Ruet’s analysis of Chinese Premier Li Qiang’s speech for CGTN:

G20/Business 20: Second meeting of the B20 India Task Force on Energy, Climate Change & Resource Efficiency

Posted on 15 March 202321 March 2023 by the_bridge_tank

The Bridge Tank’s presence in New Delhi, India, for the CII Partnership Summit 2023 from 13-15 March saw Joel Ruet, President, The Bridge Tank, take part in the second meeting of the B20 India Task Force Energy, Climate Change & Resource Efficiency. As a member of the task force, The Bridge Tank had participated in its first meeting during the Inception Meeting of the Business 20 (B20) Engagement Group of the G20, on January 24th, 2023, in Gandhinagar, India.

The task force’s second meeting, on March 15^th, raised three central topics: (1) accelerating net zero transitions, (2) a greater overall contribution of green energy, including green hydrogen and ammonia, and (3) an improved access to finance for these transitions. In keeping with one of the objectives of India’s G20 presidency, the task force has stressed the importance of including developing countries in these developments.

Notably, the stress was put on the fact that, while global ESR and non-financial standards as well as technology push through state support is needed, there is a capital cost advanatge for some countries which others do not have. Therefore, even more than human resources support or technology transfer assistance, to include developing countries, there is rather a need for a financial level-playing field, some argued, among which The Bridge Tank. While recommandations that Multilateral Developement Banks and private funds address this seriously were made, part of the debate revolved around the idea of focusing public money onto de-risking, and, The Bridge Tank argues, at involving local, national, and regional financial ecosystems into then de-risked project pipelines.

Besides, if one ventures out of the solutions only fitted for G20 countries – as India’s G20 presidency wishes to have G20 adhere to Africa’s issues for instance – then there is an debate opening up on the unequal data capacity across the world, which may add-up to capital cost inequality. This is a line of contribution we will keep feeding into the task force until its third meeting in April and final meeting in June.

Discussions and feedback between the task force’s first and second meeting raised numerous additional issues; these include establishing global standards for hydrogen, assessing the life cycle and scope for recyclables, setting provisions for domestic and international transactions on carbon and facilitating access to finance and technology. Furthermore, it is crucial to include and recognize the role mico, small, and medium entreprises have to play. As noted by some members of the task force, clear results and actions are required, as the cost of inaction on adaption to climate change would be dire, notably for coastal regions.

The meeting was convened by some of India’s leading industry captains:

Mr Sajjan Jindal, Chairman & Managing Director, JSW Group, chair of the task force
Mr Vineet Mittal, Chairman, Avaada Group, vice chair of the task force
Mr T V Narendran, Managing Director, Tata Steel, vice chair of the task force
Mr Chrstian Cahn von Seelen, Executive Committe memebrr Volskwagen, vice chair of the task force
Mr Jean-Pierre Clamadieu, Chairman of the Board, ENGIE, vice chair of the task force (represented by his head of staff)

G20-Business20-CII Partnership Summit 2023: The Bridge Tank discusses resilient green supply chains

Posted on 15 March 202316 March 2023 by the_bridge_tank

On the last day of this year’s CII Partnership Summit 2023 in New Delhi, India, Joel Ruet, President, The Bridge Tank, took part in a session on ‘Building Resource Efficient & Resilient Green Supply Chains.’

The 28^th edition of the summit organised by the Confederation of Indian Industry (CII) from 13-15 March 2023 dedicated to questions of global trade, economy, competitiveness, sustainability and technology was convened with the theme “Partnerships for Responsible, Accelerated, Innovative, Sustainable, and Equitable Businesses.” This comes as the CII is serving as secretariat of the B20 (Business 20) during India’s 2023 G20 presidency. The Bridge Tank, represented by its president Joel Ruet, was invited by the CII to join in the high level discussions in New Delhi.

On March 15^th, Joel Ruet sat down with Dr Martin Keller, Lab Director & Alliance President, National Renewable Energy Laboratory (NREL), and Mr Ashwani Kumar, CEO, Suzlon Group, in a panel discussion moderated by Mr Christian Cahn von Seelen, Member of the Board and Executive Director, Volkswagen Group Sales India on ‘Building Resource Efficient & Resilient Green Supply Chains.’

During the discussions, Dr Joel Ruet noted that supply chains in a “stabilized world” needed optimization. However, in current times of uncertainty and instability, there is a real need to diversify supply chains and bring in options across countries, industries, and technologies.

This idea was echoed by Dr Martin Keller, who emphasized the need for global synergies on diversifying supply chains with regard to raw material availability, manufacturing capabilities, adoption of clean energy, circular economy & green skilling.

Mr Cahn von Seelen and Mr Kumar highlighted the role of green energy in these resilient supply chains. Mr Cahn von Seelen stressed how important it now was for the world to focus on sustainable energy supply chains to replace petrol. The example Europe has set by entirely changing its energy mix in the span of one year, following Russia’s attack on Ukraine, has shown that drastic changes are possible.

Mr Kumar went a step further, adding that we needed to look not only at how much of our energy consumption was green but how green the generated kilowatt-hour actually was. Such a process must start at R&D stage, enabling greater efficiency and providing a key contribution to green supply chains.

G20/Business 20 : The Bridge Tank takes part in the B20 India Inception Meeting

Posted on 17 February 202320 February 2023 by the_bridge_tank

After Indonesia’s tenure in 2022, the turn of the year saw India assume the presidency of the G20 for 2023.

From 22 to 24 January 2023, the city of Gandhinagar in Gujarat, India, hosted the Inception Meeting of the Business 20 (B20) Engagement Group of the G20 to discuss the global economy and some of the most pressing issues facing our world with the business community. The meeting gathered Indian Ministers and delegates, as well as influential international business leaders and policy makers.

As a member to the B20, The Bridge Tank attended the summit in Gandhinagar, represented by its chairman Joel Ruet. Besides the public sessions at the Mahatma Mandir, the Inception Meeting notably marked the launch of the B20 Task Forces and Action Groups, to which The Bridge Tank will be an active contributor in the year to come.

Focussing its participation on three great themes: sustainability, research & innovation, and bridging the gap between Africa and the G20, at the invitation of the Indian Presidency of the G20, The Bridge Tank is now member to both the B20 India Taskforce on Energy, Climate Change and Resource Efficiency, and the B20 India Action Council on African Economic Integration.

Setting the tone for India’s 2023 G20 presidency

Organised by the Confederation of Indian Industry (CII), which has taken up the B20 India Secretariat, the Plenary Sessions of the B20 Inception Meeting, held at the Mahatma Mandir on January 23^rd, set the tone for the summit and for India’s year presiding over the G20.

The inaugural session highlighted the vision, thematic priorities, and values which will drive the B20 India. Mr Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII), reminded participants of the acronym R.A.I.S.E – Responsible, Accelerated, Innovative, Sustainable and Equitable business – which will serve as the cornerstone of B20 India.

“The theme of the B20, which has been formed under the umbrella of G20 Presidency of India, is R.A.I.S.E. – Responsible, Accelerated, Innovative, Sustainable and Equitable business.”

Mr Chandrajit Banerjee

Director General, Confederation of Indian Industry (CII)

During his opening address on the requirements to deliver a successful B20 India, Mr N Chandrasekaran, Chair, B20 India, and Chairman, Tata Sons, stressed the role of reducing inequality thanks to digital transformation. He went on to underline some of the main priorities identified for B20 India, including sustainability, energy transition, mobility, biodiversity, water management and the UN SDGs.

"B20 presidency is an opportunity for India to showcase and share best practices as well as work towards developing specific recommendations on bringing equality using digital transformation.”

Mr N Chandrasekaran

Chair, B20 India & Chairman, Tata Sons

Sustainability and energy transitions: B20 India Taskforce on Energy, Climate Change and Resource Efficiency

The centrality of the fight against climate change and the place of energy transitions and sustainable development in the B20 India priorities were introduced during the plenary session by Mr Som Parkash, Hon’ble Minister of State for Commerce & Industry.

Minister Parkash said that “India, under G20 Presidency, needs to work towards prioritizing fight against climate change and environment degradation through efforts to reduce greenhouse gas emissions and promote clean energy.”

This priority, in line with B20’s R.A.I.S.E motto, was echoed one day later, on January 24^th, during the first meeting of the B20 India Taskforce on Energy, Climate Change and Resource Efficiency, which The Bridge Tank attended as a member of the Task Force.

The meeting, chaired by Mr T V Narendran, B20 India Co-Chair of Taskforce on Energy, Climate Change and Resource Efficiency and CEO & MD Tata Steel Ltd, presented the task force’s priorities and expected outcomes.

Hoping to accelerate energy transitions, resource efficiency, and adaptation measures in G20 economies, the task force’s priorities were pointed out to be in broad alignment with G20 priorities on climate change.

The goal is thus to address the following key issues :

global net zero transitions;
energy security and energy access;
just transitions;
circular economy and resource efficiency;
climate finance and technology innovation;
adaptation and resilience.

“India, under G20 Presidency, needs to work towards prioritizing fight against climate change and environment degradation through efforts to reduce greenhouse gas emissions and promote clean energy.”

Mr Som Parkash

Hon’ble Minister of State for Commerce & Industry

The Task Force’s Priorities cover a variety of themes including:

Enhancing global cooperation in accelerating net-zero transition through global industry-specific coalitions, and channelling investments and financing towards global priorities and pathways;
Improving investments, development and commercialisation of green-energy technologies;
Improving climate finance through new financing pathways for energy transition, setting clear energy mandates for multilateral development banks, and harmonizing the development of national carbon markets;
Improving resource efficiency through regulatory frameworks, policies, business and financing models which encourage circular economy;
Implementing adaptation policies taking ecosystem-based approaches to provide resilient infrastructure, ensuring gender-inclusive adaptation, and mobilising finance for the implementation.

The expertise The Bridge Tank has accumulated over the years in energy trajectories and energy transitions, in addition to its various research and consulting projects centred on climate finance and blended finance but also contributing to the development of circular economy and sustainable development models will serve as valuable building blocks of The Bridge Tank’s contribution to the B20 Task Force, which will meet again on 14-15 March 2023.

Connecting Africa and G20: B20 India Action Council on African Economic Integration

Addressing B20 India’s efforts to represent the issues relevant to the global economy, Mr Sanjiv Bajaj, President of CII & Chairman & Managing Director, Bajaj Finserv Ltd, introduced the audience of the Plenary Session to the focused agenda and Action Council on the Economic Integration of Africa, which hopes to strengthen ties between African economies and the G20.

As a long-time advocate for a greater integration of the African continent in G20 actions and now a contributing member of the B20 India Action Council on African Economic Integration, The Bridge Tank salutes this initiative.

On January 24^th, the last day of the Inception Meeting, The Bridge Tank thus also took part in the introductory session of the B20 India Action Council on African Economic Integration, which discussed the objectives and priorities of the council.

The meeting raised three main expected outcomes to bolster the economic integration of the African continent:

The formulation of a Technical Assistance Facilities (TAFs) Programme by G20 members, in order to accelerate the AfCFTA implementation through technical and financial assistance to the 54 African nations
Commitments by G20 states to each enter into customized Preferential Trade Agreements with at least 20 African nations (with a minimum of 100 tariff lines on products or services being liberalized in each of these agreements)
Commitments by G20 states to each launch a minimum of 3 development finance programmes benefiting at least 5 African nations (either bilaterally or through multilateral institutions), covering themes like: industrial park programmes, energy or transport infrastructure projects, health, education and skilling initiatives, or micro, small, and medium enterprises funding programmes.

Expanding on these expected outcomes, Joel Ruet, Chairman, The Bridge Tank, put forward the idea of an origination fund for climate resilience & adaptation projects originating from and funded by the G20. In addition to that, the G20 could help derisk projects originated from African countries and companies.

The Bridge Tank will continue its efforts within both the the B20 India Taskforce on Energy, Climate Change and Resource Efficiency, and the B20 India Action Council on African Economic Integration in the coming months.

The Bridge Tank continues its involvement on hydrogen at COP 27 through a high-level panel on African Green Hydrogen Hubs

Posted on 17 November 202218 November 2022 by the_bridge_tank

The Bridge Tank’s continued engagement on questions of hydrogen has put it at the forefront of public debate on the matter. Over the years, this has resulted in a number of publications on hydrogen (our report & our policy brief), and led to The Bridge Tank being the only think tank invited to the launch of the Hydrogen Council in Davos, in 2017.

This active involvement and expertise on hydrogen was once again put to use during this second week of COP 27 in Egypt.

The Bridge Tank, represented by Dr. Joel Ruet, President, and Dr. Hakima el Haite, board member, took part in a high level panel discussion co-organised by the International Solar Alliance and Liberal International on “Energy, Green Hydrogen in Africa; Perspectives for Solutions” in Sharm el Sheikh, on November 15^th, 2022.

The meeting brought together prominent leaders from the political sphere to establish strategies for the African continent to sustainably harness its existing resources and meet its growing energy demand, while following a sustainable path to a net-zero future and delivering on the Sustainable Development Goals. This energy demand is a necessary component of the continent’s economic development and offers a way to lift many of its citizens out of poverty.

Participants to this high-level panel discussion included representatives from various government organizations, private sector actors, political figures, and members of the French and American press. Among these were the CEO of the Namibia Investment Promotion and Development Board, advisor to the President of Namibia, a representative of the Minister of Energy of Mauritania, a representative of the National Agency for Renewable Energies of Senegal, and the Vice-President of the Energy Commission of the Parliament of Portugal.

Further participants included the Secretary General of the International Youth Nuclear Congress (IYNC), the Director General of Energies 2050, and various members of Liberal International and investment representatives.

The discussions built on a presentation provided by the International Solar Alliance (ISA), which offered insights into a study on the possible development of green hydrogen hubs in Africa by 2030-2035. Financed by the European Investment Bank and supported by Liberal International, this study was conducted by the ISA, an organisation of about 120 nations launched in 2015 by Narendra Modi, Prime Minister of India, and Francois Hollande, Former President of France.

The study provides an innovative approach to green hydrogen production and hydrogen export perspectives for African countries, defining the creation of a local market as a necessary prerequisite for a stable long-term export strategy. This local hydrogen market would rely on a local industrial demand from “hard-to-abate” sectors (e.g. for the steel industry, ammonia production, energy, or mining), for which decarbonation is of intrinsic value.

Green hydrogen would be produced through water electrolysis making use of solar energy. With water being a rare commodity in the region, the strategy plans to make use of desalinated sea water. Production sites would therefore be near the sea and create local hydrogen ecosystems with industrial sites.

The energy needed for desalination would be covered by the produced green hydrogen, making for a cost- and energy-efficient production method. It would also be possible to desalinate more water than is needed for hydrogen production. This water could then be used for irrigation or be directly incorporated in urban water supplies, alleviating water stress on the African continent.

This plan is no mere abstraction but presents concrete and proven opportunities, as 14 such plants are currently being developed by HyDeal in Spain and Portugal.

Exporting hydrogen to Europe would thus only be a factor of interest at a later stage, after the establishment of a resilient and effective hydrogen ecosystem at the local level.

While many national strategies and studies focus on Africa’s potential as a producer and exporter of green hydrogen to Europe, this study provides the missing link to the establishment of such a production. It offers a way to secure and stabilise early local production through the creation of a domestic market. The potential of hydrogen would thus firstly be harvested for domestic consumption and industrial use within African countries before being used for exports.

In addition to that, this approach would create efficient and stable hydrogen ecosystems, relying on greater acceptance by the local population and industrial actors. This in turns provides national green hydrogen export programs with increased stability, granting them a strategic autonomy which would free them from a dependency of the international market, price variations, or uncertainty surrounding electrolyser technologies.

On the European side, this strategy would also allow economic hedging and greater scale-up efficiency.

The study offers a detailed and methodologically comparable assessment of possible hydrogen hubs in Africa. While it was primarily conducted in Egypt, Namibia, and Mauritania, the study’s conclusions can be replicated and expanded to other countries on the continent.