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During his three-year tenure as Japan’s prime minister, Fumio Kishida’s created the Asia Zero Emission Community (AZEC) to, in his words, “help Asia decarbonise together”.

But a year and a half after AZEC was formally launched, a new report by the international research organization Zero Carbon Analytics shows that one-third of agreements between Japan and AZEC member countries promote or prolong fossil fuels.

Of the 158 projects financed by Japan under this initiative, 56 include fossil fuel technologies such as natural gas, co-firing ammonia with fossil fuel in power plants, hydrogen produced with fossil fuels, carbon capture and storage (CCS), and e-fuels.

A report by Zero Carbon Analytics shows the projects signed under the AZEC initiative leave renewable energy on the sidelines and favour technologies that promote or prolong fossil fuels. (Photo: Zero Carbon Analytics)

The alleged climate benefits of these technologies are hotly disputed. While some studies have claimed gas is a less polluting fossil fuel than the coal used for electricity in much of Southeast Asia, a study published last week suggested that it can actually be more polluting, especially when it is imported across the sea in a liquid form called LNG.

Ammonia co-firing involves burning ammonia alongside coal in coal-fired power plants. While this reduces the amount of coal burned, critics note that the plants still burn mostly coal and that the co-firing can encourage governments to allow the coal-fired power plant to keep operating longer. Similarly, carbon capture and storage technology captures just some of a power plant’s emissions and can encourage the authorities to keep the plant open longer.

Ammonia, hydrogen and e-fuels are all fuels which can be made in more polluting ways using fossil fuels or cleaner ways with renewable electricity.

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AZEC was launched in 2023 to advance climate cooperation in Asia, with Japan playing a central role. Kishida likened it to an Asian version of the European Coal and Steel Community – a predecessor to the European Union. Members include most countries in Southeast Asia and Australia.

But Japan’s fossil fuel investments – particularly gas projects – through AZEC are inconsistent with its pledge to stop overseas financing for unabated fossil fuels, experts told Climate Home News.

At their 2022 meeting in Berlin, G7 leaders all agreed to “end new direct public support for the international unabated fossil fuel energy sector by the end of 2022, except in limited circumstances clearly defined by each country that are consistent with a 1.5 °C warming limit and the goals of the Paris Agreement”.

Report author Amy Kong said: “Relying on these technologies is a slower and more expensive path to decarbonisation for the region, and risks derailing national power sector emissions targets set out in the International Energy Agency’s 2050 net zero scenario.”

Shigeru Ishiba, Japan’s recently appointed prime minister, has suggested the country will prioritise regional cooperation and has argued in favour of renewable energy. However, there is still little information on the future of AZEC under his new government.

Zero emissions community

Japan’s goal with the AZEC initiative was to invest public funds from its climate transition bonds to “create a huge new decarbonisation market in Asia”, former PM Kishida said during the community’s launch.

Through AZEC, member countries could apply for Japanese funding for energy projects. More than 150 projects have been approved between the Japanese government or government-backed institutions and their AZEC counterparts, the Zero Carbon Analytics report shows.

Initial investments were administered via a host of Japan’s government-backed institutions, including the environment and the trade ministries. Many of Japan’s private-sector firms have also partnered with these public entities. 

But according to Zero Carbon Analytics’ analysis, over one-third of those MOUs will promote fossil fuels or technologies that will prolong the use of fossil fuels. This threatens to lock-in coal and gas investments that may be difficult to reverse, the report says.

On the other hand, 54 MOUs signed under AZEC include renewables and electrification technologies, about a third of the total. These include solar PV power, wind, hydroelectric, geothermal, battery storage, electric vehicles, green hydrogen and ammonia, and waste management. But of these 54 agreements, only 11 include wind and solar.

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‘False solutions’

Non-governmental organizations across Asia have raised concerns that AZEC primarily promotes fossil-based technologies. 

Ayumi Fukakusa, deputy executive director of Friends of the Earth Japan, told Climate Home that technologies like CCS, ammonia and biomass co-firing and LNG  “only delay climate actions and prolong the life of fossil fuel infrastructure”. She added that “AZEC will further lock-in Asian partners in massive emissions and doesn’t support real decarbonization”.

Hanna Hakko, Japan-based senior associate of the E3G think tank argued that Japan’s AZEC initiative would “serve the region far better by enabling the growth of renewable energy”, which would make the country more energy independent and contribute to long-term emissions reductions.

Wicaksono Gitawan is an Energy Transition Associate and Project Manager at Indonesian nonprofit CERAH. He called AZEC a form of “green colonialism.”

Japan’s push for ammonia co-firing has also been criticized by other governments, most prominently by Canadian, UK, and German ministers during the 2023 G7 meeting. 

‘Green colonialism’

Japan signed by far the most deals with the region’s most populous nation Indonesia, followed by Thailand and Malaysia. Historically, Japan has been the top source of infrastructure investment in Southeast Asia and spearheaded the creation of an Asian LNG market in the 1960s.

Japan’s government-backed financial institutions, such as the Japan Bank for International Cooperation, invested $93 billion in overseas oil and gas projects between 2013 and 2023. About $42 billion of that was in fossil fuels projects in Asiawhile just $9 billion was spent on clean energy over the same period.

Campaigners say the long-term financial benefits of AZEC are questionable. Fukakusa from Friends of Earth Japan said “most of the support made by the Japanese government in the past, especially for energy projects, are through loans,” which risk adding pressure on already debt-burdened economies in Southeast Asia.

According to a Wood Mackenzie analysis, the cost of electricity from utility-scale solar PV in Asia declined significantly over the last few years, while the costs of coal and gas generation increased. In 2023, renewables were 13% cheaper than conventional coal in Asia and are expected to be 32% cheaper by 2030.

(Reporting by Walter James, editing by Sebastian Rodriguez and Joe Lo)

The post Japan backs fossil fuels in Southeast Asian “zero emission” initiative appeared first on Climate Home News.

Japan backs fossil fuels in Southeast Asian “zero emission” initiative

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Efforts to green lithium extraction face scrutiny over water use 

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Mining companies are showcasing new technologies which they say could extract more lithium – a key ingredient for electric vehicle (EV) batteries – from South America’s vast, dry salt flats with lower environmental impacts.

But environmentalists question whether the expensive technology is ready to be rolled out at scale, while scientists warn it could worsen the depletion of scarce freshwater resources in the region and say more research is needed.

The “lithium triangle” – an area spanning Argentina, Bolivia and Chile – holds more than half of the world’s known lithium reserves. Here, lithium is found in salty brine beneath the region’s salt flats, which are among some of the driest places on Earth.

Lithium mining in the region has soared, driven by booming demand to manufacture batteries for EVs and large-scale energy storage.

Mining companies drill into the flats and pump the mineral-rich brine to the surface, where it is left under the sun in giant evaporation pools for 18 months until the lithium is concentrated enough to be extracted.

The technique is relatively cheap but requires vast amounts of land and water. More than 90% of the brine’s original water content is lost to evaporation and freshwater is needed at different stages of the process.

One study suggested that the Atacama Salt Flat in Chile is sinking by up to 2 centimetres a year because lithium-rich brine is being pumped at a faster rate than aquifers are being recharged.

    Lithium extraction in the region has led to repeated conflicts with local communities, who fear the impact of the industry on local water supplies and the region’s fragile ecosystem.

    The lithium industry’s answer is direct lithium extraction (DLE), a group of technologies that selectively extracts the silvery metal from brine without the need for vast open-air evaporation ponds. DLE, it argues, can reduce both land and water use.

    Direct lithium extraction investment is growing

    The technology is gaining considerable attention from mining companies, investors and governments as a way to reduce the industry’s environmental impacts while recovering more lithium from brine.

    DLE investment is expected to grow at twice the pace of the lithium market at large, according to research firm IDTechX.

    There are around a dozen DLE projects at different stages of development across South America. The Chilean government has made it a central pillar of its latest National Lithium Strategy, mandating its use in new mining projects.

    Last year, French company Eramet opened Centenario Ratones in northern Argentina, the first plant in the world to attempt to extract lithium solely using DLE.

    Eramet’s lithium extraction plant is widely seen as a major test of the technology. “Everyone is on the edge of their seats to see how this progresses,” said Federico Gay, a lithium analyst at Benchmark Mineral Intelligence. “If they prove to be successful, I’m sure more capital will venture into the DLE space,” he said.

    More than 70 different technologies are classified as DLE. Brine is still extracted from the salt flats but is separated from the lithium using chemical compounds or sieve-like membranes before being reinjected underground.

    DLE techniques have been used commercially since 1996, but only as part of a hybrid model still involving evaporation pools. Of the four plants in production making partial use of DLE, one is in Argentina and three are in China.

    Reduced environmental footprint

    New-generation DLE technologies have been hailed as “potentially game-changing” for addressing some of the issues of traditional brine extraction.

    “DLE could potentially have a transformative impact on lithium production,” the International Lithium Association found in a recent report on the technology.

    Firstly, there is no need for evaporation pools – some of which cover an area equivalent to the size of 3,000 football pitches.

    “The land impact is minimal, compared to evaporation where it’s huge,” said Gay.

    A drone view shows Eramet’s lithium production plant at Salar Centenario in Salta, Argentina, July 4, 2024. (Photo: REUTERS/Matias Baglietto)

    A drone view shows Eramet’s lithium production plant at Salar Centenario in Salta, Argentina, July 4, 2024. (Photo: REUTERS/Matias Baglietto)

    The process is also significantly quicker and increases lithium recovery. Roughly half of the lithium is lost during evaporation, whereas DLE can recover more than 90% of the metal in the brine.

    In addition, the brine can be reinjected into the salt flats, although this is a complicated process that needs to be carefully handled to avoid damaging their hydrological balance.

    However, Gay said the commissioning of a DLE plant is currently several times more expensive than a traditional lithium brine extraction plant.

    “In theory it works, but in practice we only have a few examples,” Gay said. “Most of these companies are promising to break the cost curve and ramp up indefinitely. I think in the next two years it’s time to actually fulfill some of those promises.”

    Freshwater concerns

    However, concerns over the use of freshwater persist.

    Although DLE doesn’t require the evaporation of brine water, it often needs more freshwater to clean or cool equipment.

    A 2023 study published in the journal Nature reviewed 57 articles on DLE that analysed freshwater consumption. A quarter of the articles reported significantly higher use of freshwater than conventional lithium brine mining – more than 10 times higher in some cases.

    “These volumes of freshwater are not available in the vicinity of [salt flats] and would even pose problems around less-arid geothermal resources,” the study found.

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    Dan Corkran, a hydrologist at the University of Massachusetts, recently published research showing that the pumping of freshwater from the salt flats had a much higher impact on local wetland ecosystems than the pumping of salty brine. “The two cannot be considered equivalent in a water footprint calculation,” he said, explaining that doing so would “obscure the true impact” of lithium extraction.

    Newer DLE processes are “claiming to require little-to-no freshwater”, he added, but the impact of these technologies is yet to be thoroughly analysed.

    Dried-up rivers

    Last week, Indigenous communities from across South America held a summit to discuss their concerns over ongoing lithium extraction.

    The meeting, organised by the Andean Wetlands Alliance, coincided with the 14th International Lithium Seminar, which brought together industry players and politicians from Argentina and beyond.

    Indigenous representatives visited the nearby Hombre Muerto Salt Flat, which has borne the brunt of nearly three decades of lithium extraction. Today, a lithium plant there uses a hybrid approach including DLE and evaporation pools.

    Local people say the river “dried up” in the years after the mine opened. Corkran’s study linked a 90% reduction in wetland vegetation to the lithium’s plant freshwater extraction.

    Pia Marchegiani, of Argentine environmental NGO FARN, said that while DLE is being promoted by companies as a “better” technique for extraction, freshwater use remained unclear. “There are many open questions,” she said.

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    Stronger regulations

    Analysts speaking to Climate Home News have also questioned the commercial readiness of the technology.

    Eramet was forced to downgrade its production projections at its DLE plant earlier this year, blaming the late commissioning of a crucial component.

    Climate Home News asked Eramet for the water footprint of its DLE plant and whether its calculations excluded brine, but it did not respond.

    For Eduardo Gigante, an Argentina-based lithium consultant, DLE is a “very promising technology”. But beyond the hype, it is not yet ready for large-scale deployment, he said.

    Strong regulations are needed to ensure that the environmental impact of the lithium rush is taken seriously, Gigante added.

    In Argentina alone, there are currently 38 proposals for new lithium mines. At least two-thirds are expected to use DLE. “If you extract a lot of water without control, this is a problem,” said Gigante. “You need strong regulations, a strong government in order to control this.”

    The post Efforts to green lithium extraction face scrutiny over water use  appeared first on Climate Home News.

    Efforts to green lithium extraction face scrutiny over water use 

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    Maryland’s Conowingo Dam Settlement Reasserts State’s Clean Water Act Authority but Revives Dredging Debate

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    The new agreement commits $340 million in environmental investments tied to the Conowingo Dam’s long-term operation, setting an example of successful citizen advocacy.

    Maryland this month finalized a $340 million deal with Constellation Energy to relicense the Conowingo Dam in Cecil County, ending years of litigation and regulatory uncertainty. The agreement restores the state’s authority to enforce water quality standards under the Clean Water Act and sets a possible precedent for dozens of hydroelectric relicensing cases nationwide expected in coming years.

    Maryland’s Conowingo Dam Settlement Reasserts State’s Clean Water Act Authority but Revives Dredging Debate

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    A Michigan Town Hopes to Stop a Data Center With a 2026 Ballot Initiative

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    Local officials see millions of dollars in tax revenue, but more than 950 residents who signed ballot petitions fear endless noise, pollution and higher electric rates.

    This is the second of three articles about Michigan communities organizing to stop the construction of energy-intensive computing facilities.

    A Michigan Town Hopes to Stop a Data Center With a 2026 Ballot Initiative

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