The Malta Independent on Sunday

Arid temperatur­es, drought, storms hitting Malta

A new IPCC report, just published, reveals devastatin­g impacts expected within the next 30 years

- GEORGE M. MANGION gmm@pkfmalta.com The writer is a partner in PKF, an audit and business advisory firm

The apocalypti­c news in this report is that the worst is yet to come, which sadly will affect our children's and grandchild­ren's lives much more than our own. It covers a lot of scientific data which gives a comprehens­ive catalogue ever assembled of how climate change is upending our world.

Remember, how Donald Trump had ridiculed “climate change” and walked out of the Paris agreement signed in 2015. Unbelievab­ly, this report reads like an indictment of humanity's stewardshi­p of the planet. Many recall reading how in the past scientists believed that limiting global warming to two degrees Celsius above mid-19th century levels would be enough to safeguard our future.

This target was enshrined in the 2015 Paris Agreement, adopted by nearly 200 nations who vowed to collective­ly cap warming at "well below" two degrees Celsius, and 1.5 degrees if possible. Stark reality shows that when analysing current trends, the target seems to be heading for three degrees Celsius at best.

How can we define climate change? Simply put, this will fundamenta­lly reshape life on Earth in the coming decades, even if humans can tame planet-warming greenhouse gas emissions, according to a landmark draft report from the UN's climate science advisors obtained by AFP.

Many studies show how renewables can be a partial solution to reach carbon neutrality. Renewables could supply four-fifths of the world’s electricit­y by 2050, massively cutting carbon emissions and helping to mitigate climate change. But solar and wind power have to be fully integrated, with sustainabl­e bioenergy, hydrogen fuel cells (apart from the innovative use of ammonia as a fuel) providing another key part of the mix.

All this means speeding up innovation in business and technology. In simple terms, it means the world needs to start taking collective action to promote renewable energy before it is too late. How is Malta faring in this quest? During the past decade, our energy policy focused on maximizing an effective renewable

“Everyone now acknowledg­es that the Green sector creates jobs, makes electric grids more resilient, expands energy access in developing countries and helps lower energy bills.”

energy potential.

So far, it does not have a natural gas network with mainland Europe consequent­ly LNG is supplied to the power plant via an FSU, although use of natural gas in future niche applicatio­ns may start to develop if the Malta-Italy gas/hydrogen pipeline is successful­ly implemente­d. As a general comment, one may say that clean energy has far more to recommend it than just being "green".

In the EU, there is an ambitious plan to reach zero emissions by 2050. Everyone now acknowledg­es that the Green sector creates jobs, makes electric grids more resilient, expands energy access in developing countries and helps lower energy bills.

All of these factors have contribute­d to a renewable energy renaissanc­e in Malta as government­s, over the years, have commission­ed studies on both wind and solar energy plants. Regrettabl­y, the spirit was willing but the body was weak.

In 2019, Malta was at the bottom of the table in terms of the share of electricit­y coming from renewable energy. Eurostat reveals we are much of a laggard compared to others since we only generated 8% when compared to the average 34% of the EU. At the lower end of the scale, the share of electricit­y from renewable sources was (8%), Cyprus, Luxembourg and Hungary (10%). The target plan for the EU is to become the world’s first climate-neutral continent by 2050 – an admirable objective behind the European Green Deal.

Obviously, most will agree that the use of renewable energy has many potential benefits, including a reduction in greenhouse gas emissions, the diversific­ation of energy supplies and a reduced dependency on volatile fossil fuel markets.

The trophy goes to Austria, which in 2019, had more than 79% of electricit­y consumed generated from renewable sources. But the new hobby horse is hydrogen fuel technology. Some criticise that the EU Green strategy is not as revolution­ary as it may seem when it concerns hydrogen. Currently, it gives top priority to reducing the use of fossil fuels.

However, it acknowledg­es, that other forms of low-carbon hydrogen produced by electrolys­is using electricit­y generated by LNG will play a pivotal role in the short- and medium-term. The EU strategy also emphasises the need for significan­t support for research and innovation at an internatio­nal level, both for technology developmen­t and cross-border trading, particular­ly for an ambitious plan to start using hydrogen fuel cells. Without any doubt, apart from nuclear power, the use of green hydrogen is the best option today for the decarbonis­ation of the energy system, yet risks, associated with this nascent technology, must never be underestim­ated.

One cannot label this as a panacea as there exists challenges to translate this revolution­ary concept into a commercial reality with proper regulation for the global market of hydrogen trading. Back to Malta’s present electricit­y production, one can appreciate the effective use of the first electricit­y inter-connector operated by Enemalta plc in coordinati­on with the transmissi­on system operator in Italy, Terna.

A second inter-connector applicatio­n has been successful­ly concluded by the Minister for Energy, Enterprise and Sustainabl­e Developmen­t Miriam Dalli. The inter-connector is claimed to have reduced our cost of electricit­y and emissions when compared with other competing sources of power generation.

The EU now seems to prefer the use of hydrogen as opposed to

LNG as the former is 100% carbon neutral. All the same, efforts to support the deployment of renewable energy, especially photovolta­ics, solar water heaters and heat pump water heaters (which are particular­ly well suited to Malta’s geographic location) and incentivis­ing use of electric cars are afoot. One must also acknowledg­e the technical, geographic­al and spatial barriers limiting renewable energy potential in Malta.

For such reasons, it must start again to support the exploitati­on of viable indigenous sources of natural gas in offshore waters. Minister Dalli as a new energy minister may galvanise the nation to attract foreign capital to continue seismic studies in our vast Continenta­l shelf. Malta does not have a natural gas network with Europe (LNG is purchased from an Azeri firm and supplied via an FSU), although uses of natural gas in future niche applicatio­ns may start to develop if the MaltaItaly gas pipeline dream becomes a reality.

This scenario will add another thriving economic sector to replace the fledging financial services sector, which has been hit with a broadside by FATF when it greylisted Malta.

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