• D.C.
  • BXL
  • Lagos
  • Riyadh
  • Beijing
  • SG
  • D.C.
  • BXL
  • Lagos
Semafor Logo
  • Riyadh
  • Beijing
  • SG


In his first interview with US media after being sacked this month, the former head of Ukraine’s sta͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
cloudy Kyiv
cloudy Boston
cloudy Baku
rotating globe
September 18, 2024
semafor

Net Zero

net zero
Sign up for our free email briefings
 
Hotspots
  1. Ukraine’s energy shakeup
  2. Avoided carbon accounting
  3. Climate talk kerfuffles
  4. BP blows off wind
  5. UAE’s climate finance gambit

Cities in the global south prep for climate migrants, while Microsoft and BlackRock prep for power-hungry data centers.

PostEmail
Semafor Exclusive
1

Political infighting is holding back Ukraine’s energy reconstruction

 
Tim McDonnell
Tim McDonnell
 
Ivan Alvarado/Reuters

Bureaucratic infighting and the slow pace of domestic policy reform pose a major threat to Ukraine’s energy security as the country faces a barrage of attacks on energy infrastructure by the Russian military, the recently sacked head of the country’s state-owned grid company said in an interview.

Volodymyr Kudrytskyi, who had been CEO of Ukrenergo since 2020, was fired by the company’s supervisory board earlier this month over concerns among top officials in President Volodymyr Zelenskyy’s administration that he had failed to do enough to fortify vulnerable grid infrastructure, exposing Ukraine to recurrent nationwide blackouts that are expected to worsen during the winter. But in an interview with Semafor — his first with US media since he was sacked — Kudrytskyi said his dismissal was politically motivated, and stemmed from his opposition to what he saw as inappropriate government overreach into Ukrenergo’s operations.

Kudrytskyi said his firing was representative of a deeper problem: Ukraine’s urgent scramble to restore the half of its power generating capacity that has been destroyed since the 2022 full-scale invasion is impeded by anxiety from Western governments, development banks, and private investors that money and equipment sent to the country could be lost in a “black pit” of state inefficiency and self-dealing.

“If we have an independent and professional [grid] operator, nobody can stop [Ukraine’s energy recovery],” he said. “If the operator is serving the politicians, I have big doubts.”

As Ukraine builds back from devastating waves of attacks on its energy system, the country is in dire need of more money, energy equipment, and defensive weapons. But its biggest challenge may be convincing top energy officials to embrace the sweeping cultural change needed to replace the lumbering, centralized system left over from the Soviet era with a more resilient, privately-owned, and decentralized (not to mention greener) system.

PostEmail
Semafor Exclusive
2

Avoided carbon accounting

A GE Vernova gas turbine.
Courtesy of GE Vernova

One of the world’s biggest energy companies is inventing a new way of tracking progress toward its climate targets. GE Vernova — which makes the hardware generating one-quarter of the world’s electricity — split off from its parent company GE in April. The company’s first sustainability report as an independent entity, released today and shared first with Semafor, lays out how it plans to capitalize on what will likely be a decade of rapid global growth in power demand. Although the company aims to ultimately reach carbon neutral for the traditional scopes 1 and 2 by 2030, and net zero for Scope 3 emissions by 2050, rising use of its products — especially gas turbines — means Scope 3 emissions may go up before they go down, chief sustainability officer Roger Martella told Semafor.

So in the meantime, the company is tracking what it calls “avoided carbon,” a measure that accounts for the greater efficiency of its power generation products compared to an industry-standard baseline. By this measure, the company’s sales in 2023 saved 20 million metric tons of CO2. This metric is likely to be “provocative,” Martella admitted. “But if we can put more electricity on the grid, and avoid carbon emissions because our electricity is lower carbon intensity than the alternatives, then we’ve had more of an impact than by reducing our own operational emissions in any given year.”

PostEmail
Live Journalism

Nights of Net Zero: Powering the Future

David Hardy, Group EVP and CEO Americas, Ørsted and Kathleen Barrón, EVP and Chief Strategy Officer, Constellation join Semafor on Monday, Sep. 23 to discuss the most efficient ways the energy sector can meet the moment and maintain clean, reliable energy. Networking reception to follow. Request Invitation.

The Next 3 Billion

President Julius Maada Bio, Sierra Leone and Mcebisi Jonas, Chairman, MTN Group will join the stage at The Next 3 Billion summit on Tuesday, Sep. 24 — the premier US convening dedicated to unlocking one of the biggest social and economic opportunities of our time: connecting the unconnected. Request invitation.

Nights of Net Zero: Climate Innovations

Tom Steyer, Co-Executive Chair, Galvanize Climate Solutions, Mary de Wysocki, SVP and Chief Sustainability Officer at Cisco, and Heather Zichal, Global Head of Sustainability, JPMorgan Chase join Semafor on Wednesday, Sep. 25 for an evening of forward-looking discussions on climate finance and AI’s role in advancing low-carbon technologies. This discussion is followed by a networking reception. Request Invitation.

Net Zero Climate Week happy hour!

Join Tim McDonnell and Prashant Rao for a casual off-the-record happy hour to round off Climate Week on the evening of Thursday, Sep. 26. RSVP here.

PostEmail
3

Climate talk kerfuffles

COP29 President-Designate Mukhtar Babayev. Elizabeth Frantz/Reuters

The organizers of COP29 in Azerbaijan published a laundry list of goals for the summit, even as preliminary negotiations over its core finance target appear stalled. The talks will aim to produce new agreements on everything from reducing methane emissions to “climate-positive digitalization.” But there’s little indication that countries will be able to agree on a new global climate fundraising goal, which a recent UN report says needs to reach at least $500 billion per year. Negotiations among rich countries to curb overseas investment in fossil fuels are also stalling, while major oil and gas exporters push back behind closed doors against an agreement to phase out fossil fuels. Altogether, the Baku summit in November promises to be turbulent, to say the least.

PostEmail
4

BP blows off wind

$2 billion

Estimated value of BP’s onshore wind business in the US, which it is now looking to sell. The UK oil major, which once aimed to push ahead of its rivals into the clean energy transition, is now refocusing on its core oil and gas business and dialing back — although not entirely scrapping — its renewables investments. It took a $1.1 billion writedown on its US offshore wind business last year, and is now looking to sell off the onshore segment to free up cash it plans to invest in solar.

PostEmail
Semafor Exclusive
5

UAE’s climate finance gambit

 
Mohammed Sergie
Mohammed Sergie
 
Amr Alfiky/Reuters

ALTÉRRA, the UAE’s $30 billion climate-focused fund, has attracted global fund managers to finance green projects in developing countries by capping its own returns on risky investments, the fund’s CEO told Semafor.

The strategy underlines a mammoth challenge in the world of climate finance: There isn’t enough money, and what little there is stays in the rich world, loath to take on the risks — real or perceived — presented by poorer countries. Capital that’s managed by banks, infrastructure funds, and other private investors covers less than half of the financing needed for climate mitigation projects in developing countries excluding China, according to the IMF. Political and economic risk, low returns (at least in relation to the apparent challenges), and high costs are usually blamed for the shortfall. But Abu Dhabi is more confident, building on experience providing loans and grants to an array of developing markets and investing through its renewable energy firm Masdar. And now it’s putting its money where its mouth is in apparently riskier places on a bigger scale.

Majid Al-Suwaidi, CEO of ALTÉRRA and COP28 director-general, didn’t disclose how much the UAE was willing to give up in terms of returns, or where it had set its cap. But some asset managers who aren’t active in climate finance have held discussions with ALTÉRRA, he said, an encouraging sign that the fund’s efforts may unlock new sources of capital for developing economies which most need the funding.

PostEmail
Power Plays

New Energy

Fossil Fuels

An LNG tanker in Cameron, Louisiana
Marcy de Luna/File Photo/Reuters

Finance

Tech

Politics & Policy

Minerals & Mining

EVs

Personnel

PostEmail
One Good Text

Yvonne Aki Sawyerr, mayor of Freetown, Sierra Leone and co-chair of the advocacy group C40 Cities. A report this week from the group projects that under current global emissions, major cities in the global south will see an influx of at least eight million climate migrants by 2050.

PostEmail
Hot on Semafor
PostEmail