The Amazon’s ‘tipping point’

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Dear readers,

The Amazon, the world’s largest forest, is taking in less carbon dioxide compared to a decade ago. Some people have put their bets on innovative mechanisms like carbon offsets to help restore the forests or slow the rate of deforestation. In reality, not many programs have achieved their intended goals.

For this issue, we look at the latest updates regarding the Amazon as well as its surrounding carbon offset industry.

Enjoy reading!

DEEP READS

Trouble in the Amazon
Scientists have been closely monitoring how much carbon dioxide the Amazon takes in for at least a decade.

In recent years, however, some of them began sounding the alarm.

The forest’s carbon dioxide uptake is weakening over most of its area. Parts of the Amazon have even become sources of carbon emissions.

Some scientists believe that the forest may be approaching a “tipping point,” losing its ability to bounce back after a drought or other extreme weather events.

The big question is: With the ongoing efforts to stop deforestation and restore ravaged lands, is it still possible to return the forest to a healthy state in light of climate change?

One way the global community has responded to these issues is through carbon credits and offset programs. Funds raised from these schemes are used to invest in decarbonization efforts such as reforestation projects. Because of this, forest areas like the Amazon have become appealing prospects for companies dealing with them.

However, many players of the burgeoning industry have been accused of pressuring people to be a part of decarbonization efforts without providing much detail. In addition, the proceeds from these programs don’t always get put toward benefiting the local communities in affected areas.

Moreover, many carbon offset projects aimed at preventing deforestation are failing to bring about meaningful impact, a recent study that surveyed six countries found.

“If you rely 100% on offsets, you probably will not do anything positive in terms of mitigating climate change,” said Thales West, the study’s lead author.

The study, along with its commenters and critics, call for a more comprehensive vetting process for carbon offset schemes as well as more transparency with the actual impact these projects are making.

TRENDING NEWS

You can also check out Tech in Asia’s coverage of Asia’s greentech scene here.

1️⃣ Total spending on fuel subsidies topped $7t in 2022, IMF says
Updated estimates from the International Monetary Fund (IMF) put the value of global subsidies for fossil fuels at US$7 trillion as of 2022, a US$2 trillion increase from two years prior. These subsidies are costing governments the equivalent of 7.1% of global gross domestic product, which is more than what’s being spent on education, the agency said.

Why it matters:
Majority of that US$7 trillion figure is credited to what the IMF calls “implicit subsidies,” or the hidden environmental costs that aren’t accounted for in fossil fuel sales. It argues that factoring these implicit subsidies to fossil fuel prices would make consumers more critical of what they’re purchasing and how it’s affecting the environment.

2️⃣ Biden offers $15.5b to boost battery and EV manufacturing
The US Department of Energy has earmarked US$12 billion in funding for automotive manufacturing conversion projects for electric vehicles. Meanwhile, it has allocated US$3.5 billion to expand domestic manufacturing of vehicle batteries and its components as well as grid infrastructure.

Why it matters:
Several vehicle and battery manufacturers are gradually moving their operations to the US following the effects of the pandemic on the EV supply chain. The US has also rolled out incentives for manufacturers under the Inflation Reduction Act.

3️⃣ Indonesia delays plan to invest $20b in energy transition funds
The Indonesian government has pushed back the announcement of its planned investments from the US$20 billion Just Energy Transition Partnership, which aims to help coal-dependent emerging economies transition to cleaner energy sources through funding from developed countries and global lenders.

Why it matters:
Among the initiative’s goals include shutting down Indonesia’s coal power plants and helping the country adopt more environmentally friendly energy sources. It’s based on a similar initiative launched in South Africa that aims to reduce the country’s reliance on coal.

4️⃣ Renewables are on track to keep getting cheaper and cheaper
A recent RMI report revealed that by 2030, the costs of wind and solar power will reduce by 25% and 50%, respectively, compared to today’s prices.

Why it matters:
The continued decline of renewable energy prices have made it more competitive than fossil fuels for new investments – the former is expected to get 62% of global energy investments this year.

NEWS YOU SHOULD KNOW

1️⃣ ASEAN needs $2t to reach net-zero goal: climate forum
If no action is taken, member states stand to lose 37.4% of their current GDP by 2048, said ASEAN-Business Advisory Council chair Arsjad Rasjid.

2️⃣ WealthGreen to launch carbon trading app in Asia, Australia
The firm, which claims to be the first in the world to make carbon trading accessible to retails investors, aims to have 30,000 users by the end of 2023.

3️⃣ Singapore EV firm Charged Asia charges up with $40m deal
The funds will be used to expand the e-bike manufacturer’s operations in Indonesia and the wider Southeast Asian market.

4️⃣ Foxconn fund backs Indonesia EV company’s $50m series B
The funds will be used to speed up network expansion in Indonesia and product development of the Alva e-motorbikes.

5️⃣ Vingroup founder’s e-bike hailing service debuts in Vietnam
Green and Smart Mobility aims to have 60,000 electric scooters on the road by the end of the year, CEO Thanh Nguyen said.

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