All the talk these days is achieving “net zero”, a state where we the Earth absorbs as much carbon as we emit. Is this achievable? After all, from a global point of view, the vast majority of our energy still derives from fossil fuel. Not sure? See all of the news about OPEC and other energy producing companies. They are still doing well. And what about our agriculture and deforestation? Achieving “net zero” means a complete change to the global economy and probably how we live our lives. Can we do it? At what cost?

This means all of us will have to change the way we live, the way we work, the way we play, the way we socialize. Drive electric cars. Only travel when you have to. Only use energy (and it better come from clean sources) when you have to.

What might be scariest is the how. There is no magic solution, a magic “pill”, nothing even a well-intentioned company can invent something to achieve net zero with no impact on our lifestyles. Also, it will take all of us, every country to change our ways of life for net zero. If one major country decides not to take part for foolish political reasons of an egotistical autocrat, we probably will not achieve net zero. Can we act as people on one planet to make the changes needed to propel us to net  zero? Here’s what must happen – at a minimum:

• Governments and the public must encourage research and development of new products and innovations to make low- or no-carbon options feasible, affordable, and and acceptable. Yes, that may mean “taking sides” or investing in technologies that may turn out not to work, but we must take this risk to achieve innovations that will help us achieve net zero. For those of us old enough, we remember the race to the Moon in the 1960’s. Those innovations had a much greater positive impact on our lives beyond taking astronauts to outer space!
• Markets and financial institutions must recognize the importance of these new products, too, and change their mindset from reward only those that make short-term profits, but also those that work on risky ventures, too.
• But making good products is not enough. We must have the strength to invest in actually implementing them so they are available and affordable to all around the globe. What use is an electric car if there are not enough charging stations to make its use practical for everybody? That may mean “tearing up” a lot of infrastructure to make the innovations practical and, therefore, costly, for little short-term gain. But these changes and inconveniences must occur.
• Governments must cooperate internally. Governments must spend the resources on infrastructure and other non-glamorous items to allow the proliferation of these products, even if they are not politically palatable. Politicians and people must stop sniping at innovations, just because they are new or different.
• And governments must cooperate externally, too. Governments must band together to encourage innovation and not to keep discoveries “in-house” only. In addition, governments must make sure that successful innovations be implemented not only for the short-term gain of their own citizens but be rolled out to the entire global population. Governments should not be afraid to pass laws that mandate carbon emission standards or otherwise mandate or encourage the use of these technologies and should coordinate these laws with other governments.

To avoid major catastrophes that will cost all of us much more in lives, money, and quality of life in the future it will be important to be successful in all of these areas.

CCES has the experts to help your company address Climate Change issues, such as determining thoughtful strategies to reduce your greenhouse gas emissions significantly. Contact us today at karell@CCESworld.com or at 914-584-6720.

The world’s longest subsea electricity interconnector recently opened. The UK and Norway are now able to share renewable energy for the first time.

The $2 billion North Sea Link (NSL), a joint venture of National Grid and the Norwegian operator Statnett, has started commercial operations, marking a major milestone in Europe’s journey to be net zero. They estimate that by transmitting electricity from renewable sources from Norway to the UK, NSL will cause avoidance of 23 million metric tons of CO_2e emissions by 2030.

The 450-mile cable, which connects the Norwegian area near Stavanger with Blyth in the Northumberland region of the UK, started with a maximum capacity of 700 MW and will gradually increase to a full capacity of 1,400 MW. At full capacity, NSL will provide enough clean electricity to power 1.4 million homes. It is a two-way connection, transporting hydropower from several Norwegian reservoirs and power from Northumberland wind farms. In the summer, when demand is highest and winds are low in the UK, they will get needed power form Norway. In the winter, when some reservoirs freeze and movement is minimized, power will be brought to Norway from the UK wind farms.

NSL is the 5^th interconnector for National Grid, which also operates links to Belgium, France and the Netherlands. By 2030, 90% of electricity imported via National Grid’s interconnectors will be from zero carbon sources saving 100 million metric tons of CO_2e, equivalent to taking two million cars off the road.

Can this be replicated in the US? Can electricity from hydro, wind, or solar farms be sent subsea between countries or regions in the Western Hemisphere? NSL took 6 years to build, using over 4 million labor-hours and 5,880 labor-days at sea.

CCES has the experts to help you assess your energy sources and help make them as reliable, inexpensive, and green for you as possible. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Energy prices went through a roller coaster ride in 2020 and 2021, dropping during the early months of the COVID-19 pandemic, then rising more than every commodity except one (see later). The rise was driven in large part by basic economics: increased demand for energy due to the economic recovery of the COVID-19 pandemic, which outpaced crude oil and natural gas production, according to the Energy Information Administration (EIA). Producers had cut production during the early months of the pandemic as lockdowns suppressed demand so greatly. Then when demand roared back, it took time to get production out of mothballs and respond to the new strong demand. Extreme weather events also contributed to the rise in energy prices in 2021, such as the Texas winter storm in February and Hurricane Ida in September.

Prices of the energy index group of the S&P Goldman Sachs Commodity Index (GSCI) (https://www.eia.gov/todayinenergy/detail.php?id=50718) rose 54% in 2021. By comparison, most other commodity prices grew by about 20% in 2021. This major rise was most influenced by two crude oil benchmarks, the West Texas Intermediate and Brent, which influences global oil pricing. Natural gas prices increased the least among energy commodities, but still rose by 38% in 2021.

Higher prices for oil and coal and higher prices for carbon emission credits resulted in increased electricity rates worldwide, the International Energy Agency says (https://www.iea.org/commentaries/what-is-behind-soaring-energy-prices-and-what-happens-next). Such market tumult led to global power shortages, particularly in Europe and China, the latter cutting power supply for a time in certain regions, slowing manufacturing and contributing to the current global supply chain concerns.

Which commodity’s price increased more than energy’s in 2021? Something you may need in order to cope with the energy and electric price rises: coffee.

Where are energy prices headed in 2022? There seems to be major disagreements in forecasts. The US government predicts both oil and gas prices will decline in 2022, while several private sector forecasts predict the opposite occurring. The EIA (government) says that production will maintain its high levels throughout 2022 and, therefore, meet growing energy demand as the world recovers from or at least copes with COVID. Plus, the government released oil from its strategic reserves. The EIA predicts a drop in oil (and, therefore, gasoline) prices of about 10-15% in 2022. Several banks and financial institutions do not agree, saying the release from strategic reserves will cause only a temporary leveling of energy prices and that while oil and gas production is being maximized, some demand has still been depressed because of COVID, but will be fully released as the world recovers or copes with the disease. A couple of major banks/institutions predicts a 15-20% rise in oil prices in 2022.

One factor assumed in the models is the behavior of OPEC oil producers. OPEC has stated that it plans to raise oil production in 2022. If they follow through and keep oil production high and consistent, then the government models may be correct. If infighting or other factors depress production, then prices will likely rise in 2022.

Whether energy prices drop some or go up more in 2022, there is no question that energy prices will continue its long-term rise that has been occurring over many years, far outpacing inflation. Companies should take into consideration and assume that their own energy bills will rise significantly in the foreseeable future.

CCES has the experts to help your firm or entity reduce energy usage and save significant costs with tried-and-true strategies, without major disruptions – all the more important as base energy rates are increasing much more than inflation. Contact us today at karell@CCESworld.com or at 914-584-6720.

On December 20, 2021, the USEPA finalized new national greenhouse gas (GHG) emissions standards for new passenger cars and light trucks (https://www.epa.gov/regulations-emissions-vehicles-and-engines/final-rule-revise-existing-national-ghg-emissions). After the Trump Administration weakened Obama-era standards, these new ones have snapped them back to be even more ambitious, requiring automakers to meet stricter fuel efficiency standards by model year 2026. These new standards will likely result in automakers greatly shifting production to hybrid and/or electric vehicles shortly. While this will have a positive impact on GHG emissions and fuel usage, there is concern about the secondary demands these standards will cause, such as increased demand for batteries and investments in electric chargers and in the grid to maintain stability, along with lighter-weight components.

Beginning with model year 2023, the new rule will increase the stringency of fuel-efficiency requirements each year, by about 5 to 10%. Average fuel economy label values in model year 2026 will be raised from the old rule’s standard of 32 miles per gallon (mpg) to 40 mpg. The rule contains calculations and arguments that these standards will reduce GHG emissions by billions of tons and save the public hundreds of billions in gasoline expenses per year after it is enforce for awhile. The USEPA is beginning to research into the next stage of emission standards, starting with model year 2027 and to cover other vehicles, such as larger-duty trucks.

There is no question that electric vehicles will need to be a part of the way each manufacturer will ensure that they meet the new standards. The USEPA feels that sales of electric and plug-in hybrid electric vehicles will have to be raised to about 17% by model year 2026 for automakers to achieve compliance, more than doubling the current sales percent. According to the USEPA, the ultimate goal is to achieve “an all-electric, zero-emissions transportation future.”

Many are concerned that the current and predicted short-term infrastructure cannot support such growth, such as the automotive supply chain and convenient electrification for consumers. Electric transmission organizations, power producers, and electricity retailers will need to quickly plan and implement upgrades to transmission infrastructure to meet the anticipated increased demand that will result from a much larger electric fleet nationwide. And this may be a source of lawsuits to stop or reduce the aggressiveness of these new standards.

CCES has the experts to help your entity determine your GHG emissions and reduce it responsibly and economically. Contact us today at 914-584-6720 or at karell@CCESworld.com.

2021 was a rough year because of the COVID pandemic, and 2022 is off to a rough start, as a record number of people have caught the Omicron variant. Fortunately, hospitalizations and deaths have not soared because so many people are fully vaccinated and boosted. This is clearly a time of self-reflection for all of us as people, entrepreneurs, business leaders. We must come through and work together to survive these tough times, grow, and profit.

As we think about long-term ways to deal with the virus, we should think this way about how we act professionally. A key is relationships between you and the people you deal with. It’s not simple. Developing trusting relationships is a skill that that must be learned and improved upon. The problem is many of us work in a world of outcomes. We are judged by how much we do, how much we sell, how profitable our division is in a given month or quarter. We’ve been trained to be transactional in how we treat projects and people. However, if you only think of colleagues and outsiders as customers to meet a short-term goal we create relationships that are shallow. Developing relationships that are deep, where colleagues and clients are part of a bigger world, leads to better, long-term, lower-stress outcomes.

How does one act more relational? I wish I knew. I wish it were simple. Here are 3 ways to be more relational. Don’t expect to master these overnight, but you will see the positive outcomes happen for you as a person and in business.

1. RESPECT.  Like the song, spend some time to say hello and inquire respectfully of clients and colleagues, even outside the project. This nearly always pays you back in respect, more teamwork, better outcomes, and, yes, meeting goals, too.
2. Listen.  Strengthen your listening skills. Pay close attention to what your client or colleague says; don’t “hear” it through your lens. Understand his/her viewpoint, listen with empathy, and understand that the other person has needs, too, and may approach the same project from a different and a refreshing prospective, leading to new opportunities that are mutually beneficial in achieving goals.
3. Be Yourself.  Don’t role play, like being the “tough boss” or the “cool” leader. Don’t be something you’re not. Instead, be authentic. Care for others and include them in the team. Yes, “lay down the law”, if needed, for consistency, but also treat your colleagues and clients as you would like to be treated yourself.

You may not like some clients and colleagues personally, but treating all with respect, listening, and being yourself will lead to better long-term results, be less stressful for all, and make you feel happier in business, all so important. A good way to start 2022!

And for those of you who know me, if I don’t follow these actions, please let me know! CCES has the experts to help you solve your technical problems when it comes to energy and environment to maximize the benefits, avoid the pain, and disrupting operations as little as possible. Contact us with any questions. We want to team with you and help. Contact us today at 914-584-6720 or at karell@CCESworld.com.