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The “Global Energy Regulation Roundup” is dedicated to capturing and understanding emerging climate, energy, and reporting measures. Currently, international governments are increasingly establishing stricter policies on emissions reporting, trade, and energy. The purpose of this monthly blog is to highlight approaching regulations and educate key stakeholders about their effects on a range of industries.
United States of America
The California Public Utilities Commission (CPUC) approved a sweeping plan to reduce the state's yearly electric sector greenhouse gas emissions to 25 million metric tons by 2035, down by 60% compared to the 2020 emissions level. This new goal will require the state to build an additional 56GW of clean energy generation, including solar, additional energy storage, and 4GW of offshore wind energy. The CPUC also considered the resource planning and transmission build-out required for this goal and is recommending that the California Independent System Operator use the 25 MMT greenhouse gas target as the basis for transmission investment planning. The buildout of transmission infrastructure is one of the key challenges in connecting new clean energy projects to the grid; it is essential to plan far in advance to ensure the transmission is available when needed.
The Environmental Protection Agency released a proposal that would set a maximum level of 9 to 10 micrograms of fine particle pollution per cubic meter of air, commonly known as "soot," down from 12 micrograms. The previous limit was set a decade ago and remained unchanged in the previous administration. The EPA proposal would require states, counties, and tribal governments to meet a stricter air quality standard for fine particulate matter up to 2.5 microns in diameter — far smaller than the diameter of a human hair.
European Union
At the beginning of the month, the EU Commission reached a provisional agreement between the EU Parliament and the Council on the Net Zero Industry Act (NZIA). This agreement will support the EU in becoming a hub for domestic clean technology manufacturing and increasing the capacity of such technologies within the EU. The NZIA aims to position the EU as a competitive player in the clean technology industry and support the creation of green jobs and a resilient economy while also achieving the Union's climate neutrality goal by 2050. This act will ensure the EU manufacturing capacity for net-zero technologies reaches at least 40% of expected EU demand by 2030, reducing administrative burden and simplifying permitting for net-zero technologies. The agreement also set an EU carbon capture objective to reach an annual 50 million tons of injection capacity in geological CO2 storage sites in the EU by 2030. The NZIA goals are similar to those of the United States Inflation Reduction Act, both acts have an emphasis on domestic manufacturing aim of becoming a competitor within the clean technology space.
Asia
At the beginning of the month, China's state planners announced plans to adapt the pricing mechanisms for services essential to keeping the power supply stable in markets that are increasingly dependent on wind and solar as the country aims to create a national electricity market by 2030. The National Development and Reform Council stated that it would promote the development of an ancillary services market suited to the development needs of a new energy system. The announcement also included plans to focus on pricing mechanisms for standby capacity and "peak shaving," which occurs when power companies buy power from quick-ramping sources such as energy storage systems to meet spikes in demand. This announcement is among a series of documents that are setting out the rules for a national electricity market by 2025, with the market's target start date set for 2030.