Sustainability in Innovation

Global renewable capacity is set to double by 2030 amid rising headwinds from supply chains, grid integration & financing. Solar PV dominates with 80% of growth. In addition to established markets, it also surges in Saudi Arabia, Pakistan & Southeast Asia. More in the International Energy Agency (IEA)’s Renewables 2025 → https://iea.li/48AJeSf Solar is leading the growth – but wind, hydropower, bioenergy & geothermal are all contributing too. Geothermal is on course to hit historic highs in key markets while pumped-storage hydro is growing strongly, helping integration of solar & wind. More in our full report → https://iea.li/3Ww4MYB The outlook for offshore wind stands apart, with the industry facing challenges due to policy changes, supply chain bottlenecks & rising costs. Our forecast for its global capacity growth to 2030 is about 25% lower than in last year's report. Major solar PV & wind manufacturers continue to face financial struggles despite strong deployment globally. In China, PV prices are down over 60% since 2023 due to a supply glut & fierce competition for market share. And wind manufacturers outside China are reporting losses. Despite these challenges, companies' confidence in renewables remains strong – with investors & buyers benefitting from low solar prices. Most major developers have maintained or raised their 2030 deployment targets from last year, reflecting resilience & optimism in the sector. As renewables take on a greater role, policymakers must play close attention to vulnerabilities. Global supply chains for solar PV & for rare earths used in wind turbines are highly concentrated in China and are set to only diversify slightly by 2030 under current policy settings. The rise of variable renewables is also placing growing pressures on electricity systems. Curtailment & negative prices are becoming more frequent, causing economic inefficiencies & deterring investment. This underscores the need for investment in grids, storage & flexible generation. Read more of the key findings in the press release → https://iea.li/48AJeSf Explore IEA’s full Renewables 2025 report, freely available on our website → https://iea.li/3Ww4MYB And to learn more, join the report's lead author Heymi Bahar & me for the LIVE launch event from 11:00 CEST → https://iea.li/48j7kR9

At #COP28, the outcome of the First Global Stocktake called on all parties to the UNFCCC to triple renewable power generation capacity and double the rate of energy efficiency improvement by 2030. Dubbed the #UAEConsensus, and built upon the on the recommendations of IRENA, this embodied the global determination to rapidly scale up renewables. The year 2023 marked a significant milestone in this journey. The record growth of 473 GW of installed capacity, coupled with a continued decline in technology costs, indicate that world is embracing the transition away from fossil fuels. According to IRENA's latest report, renewable power is increasingly cost-competitive with fossil fuels – 81% of renewable capacity additions in 2023 produce cheaper electricity than fossil fuel alternatives – and the accelerated deployment of renewable power continues to trigger technology advancements in a virtuous cycle of production efficiency and cost reduction. Solar PV, wind and hydropower experienced the most considerable cost decreases in 2023. The global average cost of electricity (LCOE) from solar PV fell by 12%, offshore wind and hydropower by 7%, and onshore wind by 3%, with China once again dominating new capacity additions. The global average cost of electricity from utility-scale solar PV fell to USD 0.044 per kilowatt-hour (kWh) and onshore wind to USD 0.033/kWh. Low-cost renewables incentivise greater ambition; in the coming years, remarkable growth across all renewable energy sources is expected. Yet, it remains crucial to ensure the progress and deployment of renewables balances different technologies and is distributed more equitably across countries and regions. The energy transition relies on key enablers, including physical infrastructure (such as for energy storage and flexibility), policy and regulation, international collaboration, and strengthened institutional and human capacities. Renewable energy reduces exposure to volatile fossil-fuel import bills, lowers average electricity system costs, and avoids the damaging impacts of high electricity prices on consumers and industry. It offers policy makers a compelling solution to reduce fossil fuel dependency, limit damage to environmental and human health, enhance energy security and drive economic development. I encourage you to explore IRENA’s 'Renewable Power Generation Costs in 2023' report for more detailed insights 👇.

2024 EU #InnovationFund calls launched today: €4.6 billion up for grabs for #batteries, #renewablehydrogen and other net-zero innovative projects. 🎯 𝐁𝐚𝐜𝐤𝐠𝐫𝐨𝐮𝐧𝐝 & 𝐨𝐛𝐣𝐞𝐜𝐭𝐢𝐯𝐞 With an estimated revenue of €40 billion from the EU Emissions Trading System between 2020 and 2030 (530 million ETS allowances for an estimated allowance price of €75/t CO2), the EU ETS Innovation Fund is one of the world's largest funding programmes for the deployment of net-zero and innovative technologies. It is a key tool of the EU #GreenDeal Industrial Plan. Since its start in 2020, the Innovation Fund (IF) has awarded €12 billion to more than 120 projects. 📢 3 𝐭𝐞𝐧𝐝𝐞𝐫𝐬 𝐥𝐚𝐮𝐧𝐜𝐡𝐞𝐝 𝐭𝐨𝐝𝐚𝐲 1️⃣ IF Call with a €2.4 bn budget, supporting projects in various sectors including renewable energy, storage, maritime, aviation and energy-intensive industry with lump-sum payments that cover up to 60% of total costs. In the 2023 call the Commission has selected 85 innovative net-zero projects in 17 EU countries plus Norway to receive €4.8 billion in grants, including e.g. projects that contribute to 3 GW of solar #photovoltaic and 9.3 GW of #electrolyser manufacturing capacity in the EU. 2️⃣ IF Auction with a €1.2 bn budget supporting renewable #hydrogen (#RFNBO) production with a fixed premium per kg H2. This is the 2nd EU #HydrogenBank Auction after last year's pilot auction. In an eFuel Alliance webinar in May, Johanna Schiele, Javier García Fernández (both European Commission) and I analysed & discussed the pilot auction‘s results (link to slides & recording in comments). In a previous post I contrasted rules of the 1st & 2nd auction (plus a H2Global Foundation auction). 3️⃣ IF Battery Call with a €1 bn budget offering lump-sum payments to #electricvehicle battery (component) manufacturing projects. This is the first of its kind and targeted to counter dependency from #China. ⏰ 𝐅𝐞𝐰 𝐦𝐨𝐧𝐭𝐡𝐬 𝐭𝐨 𝐬𝐮𝐛𝐦𝐢𝐭 𝐛𝐢𝐝𝐬 Interested parties are invited to submit proposals until February and April 2025, respectively. Do reach out to my colleagues Catherine Galano (L’Hostis), Stefan Rohm or myself to find out how we can help you. In previous IF rounds we have, for example, supported bidders in ... ◾ ... understanding whether projects are eligible and likely to score well ◾ ... project managing the application process and producing the application document (which requires a 70 page core document plus multiple annexes) ◾ ... estimating avoided CO2 emissions (following the >100 page methodology document) ◾ ... financial modelling / business plan generation. Also be aware that payments under the Innovation Fund don't constitute #stateaid and can be combined with other support mechanisms (under certain conditions).

Wheel for Sustainable Business Innovation 🌎 The sustainability landscape is evolving rapidly, and businesses are increasingly expected to integrate environmental and social considerations into their innovation processes. However, traditional innovation frameworks often fall short by focusing solely on customer needs, financial returns, and technical feasibility, leaving critical planetary challenges unaddressed. A more comprehensive approach is needed—one that embeds sustainability at the core of value creation. The 130+ Value Proposition Types Wheel is a practical tool that helps organizations frame innovation efforts across four key dimensions: People, Planet, Profit, and Progress. It provides over 130 value types that businesses can leverage to ensure their projects contribute meaningful solutions to global challenges such as climate action, resource efficiency, social inclusion, and technological advancement. This approach shifts the focus beyond immediate customer needs to include long-term sustainability impacts across entire ecosystems. By using structured frameworks like this, companies can link their innovation projects directly to UN Sustainable Development Goals (SDGs), addressing critical issues such as climate resilience, biodiversity, and social equity. The tool also encourages the use of metrics to track progress, making sustainability-driven innovation more actionable and measurable across industries. It helps businesses unlock new forms of value while addressing both environmental risks and opportunities. The tool is adaptable to different phases of the innovation process, from identifying unmet needs to scaling solutions in the market. It guides organizations in understanding how their innovations create value in areas such as climate action, circularity, supply chain management, and stakeholder engagement. This makes it relevant for both B2B and B2C companies aiming to enhance their impact while future-proofing their operations. Originally developed by Explorer Labs, this tool has been referenced in the past and continues to remain highly useful as businesses advance their sustainability journeys. As 2025 begins, leveraging tools like this can help organizations move from incremental improvements to transformative solutions, embedding sustainability into innovation processes that deliver lasting value. #sustainability #sustainable #business #esg #climatechange #innovation #SDGs

The European Commission provides €4.6 billion to support net-zero technologies, battery cell manufacturing for electric vehicles and renewable hydrogen through the EU Innovation Fund. For #battery cell manufacturing, the call "IF 24 Battery" provides €1 billion in #funding. ⏳ The #call was opened yesterday, 3 December 2024. The deadline for applications is 24 April 2025. An online Info Day will be held on 17 and 18 December to explain the call and funding conditions in detail. 🏭 The #InnovationFund is financed by revenues from the EU Emissions Trading System (EU-ETS). Accordingly, CO2 reduction efficiency is a key funding criterion. Another criterion is the degree of innovation, based on the novelty of technologies in Europe.  🥇 The projects are to be selected and approved in a single-stage process by the end of 2025. The focus lies on #largescale projects for the #manufacturing of batteries for electric vehicles, including the application of new manufacturing techniques and processes. 👉 Further information: * Press release: https://lnkd.in/emwSfiUJ * Call text: https://lnkd.in/egDE3xnM * Info day: https://lnkd.in/ek7c4cUY

What if green finance could scale decarbonization for SMEs? 🚀🌱 Small and Medium-sized Enterprises (SMEs) contribute about 40% of business sector emissions. However, many face significant barriers in accessing the necessary tools or funds to transition to Net Zero. Today, we are proud to have partnered with HSBC in the UK to help accelerate their transition ! Taking a step back, here is an overview of various ways in which finance can help scale the energy transition 🌱🚀: 💰 Green Loans and Equity Financial institutions are now offering tailored green loans & equity investments to invest in projects like renewable energy installations and energy efficiency upgrades at favorable terms. In 2022, green loans in Europe alone totaled over $150 billion, showing a substantial increase in availability. Green equity is rapidly growing, with venture capital for green projects reaching $10 billion in 2023. 🤝 Public-Private Partnerships Public financial institutions can offer credit guarantees and direct financing, which reduce the risk for private investors. For example, the European Investment Bank (EIB) provided over €5 billion in guarantees for green projects in 2022, mobilizing an additional €20 billion in private investment. 🌍 ESG Integration In 2023, about 60% of global asset managers incorporated ESG criteria into their investment processes. This includes exclusionary screening, where investments in industries harmful to the environment are avoided. 🔧 Innovative Financial Instruments Transition Bonds help high-emission industries ("brown" sectors) transition to greener operations, unlike green bonds, which fund entirely green projects. They support incremental improvements towards sustainability in sectors such as mining, heavy industry, and utilities. In 2022, their issuance reached $20 billion. It works for SMEs too Blended Finance: This involves using public funds to attract private investment in sustainable projects. By pooling resources, private investors reduce risks, unlocking significant capital for green initiatives. In 2022, blended finance transactions mobilized over $30 billion for sustainable development projects globally. 📚 Non-Financial Support SMEs often lack the expertise and resources to navigate sustainable finance. Public and private institutions can provide essential non-financial support, including training, information on sustainable technologies, and tools for measuring and reporting environmental performance. For instance, the SME Climate Hub offers resources and training programs that have reached over 10,000 SMEs worldwide. This is also where Greenly | Certified B Corp comes in, now offering HSBC's customers in the UK a rapid way to track their emissions. Thank you for your trust Emily Bailey Pedro Anaya Natalie Blyth ! Of course, green finance still needs to grow 100X fold, so join the movement now... https://lnkd.in/eW53NhYs

♻️🌏 In today's world, the traditional linear economy, driven by a "take, make, waste" model, no longer holds. Instead, the circular economy offers a sustainable path forward, enabling us to rethink and redesign how resources are consumed, reused, and reintroduced into the system. 📈 This shift is not just an option but a necessity, as consumption at current levels is depleting the planet faster than it can regenerate. ✈️ Damien Tan, DHL shared bold decarbonization targets. As part of their 2030 goal, DHL aims to reduce greenhouse gas (GHG) emissions to <29M metric tons, a significant decrease from the current levels of 40M metric tons. By using 30% sustainable fuels for air and ocean freight and ensuring 66% of their vehicles are electric, they are committed to reducing Scope 1, 2, and 3 emissions by 42% and 25% respectively. Decarbonization is a central part of their strategy, driving efficiency while prioritizing sustainability. 🏞️👆 This vision aligns with Accenture’s findings, where 48% of companies say technology-led sustainability initiatives have led to increased revenues, and 53% state that investing in sustainable technology plays a pivotal role in meeting ESG as shared by Jason Tang, Ngee Ann Polytechnic. HP's long-standing commitment to reducing, reusing, refurbishing, and reselling its products highlights that achieving sustainability goals is possible when circular economy principles are applied rigorously. 😎♨️ Yet, the global consumption pattern remains unsustainable. If everyone adopted the lifestyle of an average U.S. citizen, we would need 5 planet Earths to sustain ourselves. Even globally, we are consuming at 1.75 times the planet's biocapacity, with Singapore's footprint at an alarming 3.6 times. We must rethink how we consume and accelerate the transition to a circular economy. 🙋I'm also proud to introduce a few forward-thinking startups that are making impactful contributions to this space: 1. WasteViz Pte. Ltd.: Offers AI-driven waste sorting as a service, enabling granular waste accounting at the source. 2. Circular Connect: Connect businesses with waste offtakers 3. Pure Active Water Pte Ltd: Innovating in water sanitation with their patented ActivH2O technology, removing biofilm from water systems to provide clean potable water. 4. GEPP Sa-Ard: A comprehensive waste data platform as a service, supporting efficient waste management. 5. Inno Green Tech: With their mobile bio-conversion system Entomal, they are revolutionizing organic waste treatment through insect-based solutions. As we move forward, collaboration between corporations, governments, and innovative startups is crucial to scaling these efforts and accelerating our transition to a more sustainable, circular future. Let’s change the way we think about waste—because waste isn’t waste until we waste it. #CircularEconomy #Sustainability #WasteManagement #Decarbonization #GreenInnovation #DHL #Startups #TechForGood

What's been happening in sustainable fashion week this week? ⬇️ 1) Burberry launched its Childrenswear 'Remake' capsule collection, consisting of surplus fabrics and yarns from previous collections. The new range covers key product categories, and also includes a 'multiple owners label' to encourage pieces to be passed down. 2) BEEN London have partnered with Tate Modern in London to create a limited edition collection of accessories crafted from upcycled banners sourced directly from the gallery's iconic building. The collection focuses on repurposing materials from the banners to give them a second life, whilst also working with next-gen material AppleSkin, made from apple waste. 3) London Fashion Week (LFW) is following in the footsteps of Copenhagen Fashion Week (CPHFW) by banning exotic skins such as crocodile and snake from its show collections from 2025. LFW also announced a ban on fur at the end of 2023. 4) German brand ARMEDANGELS has partnered with The Sourcery to transform cotton sourcing through their 'direct to grower' scheme - enhancing transparency and fair trade in cotton farming. 5) SAITEX INTERNATIONAL DONG NAI (VN) Ltd., said to be the 'cleanest' denim factory in the world, have published their latest sustainability report, highlighting a 90% reduction in Co2 emissions, 70% reduction in energy consumption and 30% less water usage across all of its sites. Worth having a look if you work with denim and want to reduce your footprint. 6) The Circle Economy Foundation has released a new report (The Circularity Gap Report) which focuses on the textile sectors transition towards circularity - in partnership with H&M Foundation. The headline states that the sector is only 0.3% circular, below a global average of 7.2%. Link below for inspiration on how to move forward. 7) Looks like it could be a 'Merry Thrift-Mas', as UK consumers are set to spend over £2 billion on secondhand gifts this festive season from insights from a report by Vinted and Retail Economics. 84% of consumers are likely to spend a proportion of their shopping budget on pre-loved christmas gifts. 8) Global Fashion Agenda have launched the 'Upstream Circularity Playbook' aimed at scaling-up recycling operations in textile and garment supply chains. The report aims to help industry scale circular business models by valorising post-industry textile waste (in other words recognising the value in material waste) 9) Karen Millen has launched in-store rental services at Selfridges and John Lewis & Partners in London, in partnership with HURR 10) Looking to other industries - the LEGO Group are switching to paper-based bags in their Lego sets as part of their commitment to reduce single use plastics from their packaging. The new bags are verified as recyclable in the European Union, the United States, and Canada. 🔗 Links to articles in comments #sustainablefashion #circularfashion #enkel Image: Burberry Childrenswear Remake Collection