{"id":285768,"date":"2023-10-30T14:16:29","date_gmt":"2023-10-30T13:16:29","guid":{"rendered":"https:\/\/climatescience.press\/?p=285768"},"modified":"2023-10-30T14:16:33","modified_gmt":"2023-10-30T13:16:33","slug":"auto-execs-are-coming-clean-evs-arent-working","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=285768","title":{"rendered":"Auto execs are coming clean: EVs aren\u2019t working"},"content":{"rendered":"\n
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With signs of growing inventory and slowing sales, auto industry executives admitted this week that their ambitious electric vehicle plans are in jeopardy, at least in the near term.<\/strong><\/p>\n\n\n\n

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From Climate Depot<\/a><\/em><\/p>\n\n\n\n

By\u00a0Marc Morano<\/a><\/p>\n\n\n\n

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https:\/\/mailchi.mp\/aef777587a4c\/auto-execs-are-coming-clean-evs-arent-working-199304?e=0b1369f9f8<\/a><\/p>\n\n\n\n

Net Zero Samizdat<\/strong><\/p>\n\n\n\n

27 October 2023<\/p>\n\n\n\n

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1) Auto execs are coming clean: EVs aren\u2019t working<\/strong>
Business Insider, 26 October 2023<\/a><\/p>\n\n\n\n

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<\/a>2) Ford hits the brakes on $12 billion in EV spending because EVs are too expensive\u00a0<\/strong>
The Verge, 26 October 2023<\/a><\/p>\n\n\n\n

3) Honda, GM scrap $5 bln plan to co-develop cheaper EVs<\/strong>
Reuters, 25 October 2023<\/a><\/p>\n\n\n\n

4) Mercedes-Benz shares fall nearly 6% as profit falls over \u2018brutal\u2019 EV pricing<\/strong>
CNBC, 26 October 2023<\/a><\/p>\n\n\n\n

5) More alarm bells sound on slowing demand for electric vehicles<\/strong>
Reuters, 25 October 2023<\/a><\/p>\n\n\n\n

6) World\u2019s top wind firm profits tumble 98% in new blow to renewable energy<\/strong>
Bloomberg, 27 October 2023<\/a><\/p>\n\n\n\n

7) Siemens Energy shares slide 39% after company seeks state guarantees
Reuters, 26 October 2023<\/a><\/strong><\/p>\n\n\n\n

8) Siemens Energy\u2019s faulty wind turbines become Germany\u2019s \u20ac16 billion problem<\/strong>
Bloomberg, 27 October 2023<\/a><\/p>\n\n\n\n

9) Shell takes axe to its eco-friendly business as oil giant focuses on digging up fossil fuels<\/strong>
Forbes, 26 October 2023<\/a><\/p>\n\n\n\n

10) Swiss shift rightwards in vote as immigration fears trump green agenda<\/strong>
Reuters, 23 October 2023<\/a><\/p>\n\n\n\n

11) Britain risks becoming dependent on oil and gas imports as North Sea production dries up<\/strong>
The Daily Telegraph, 26 October 2023<\/a><\/p>\n\n\n\n

12) Tilak Doshi: Climate change hurts the poor: but not the way you think it does<\/strong>
Forbes, 26 October 2023<\/a><\/p>\n\n\n\n

1) Auto execs are coming clean: EVs aren\u2019t working<\/strong>
Business Insider, 26 October 2023<\/a><\/p>\n\n\n\n

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With signs of growing inventory and slowing sales, auto industry executives admitted this week that their ambitious electric vehicle plans are in jeopardy, at least in the near term.<\/mark><\/em><\/strong><\/p>\n\n\n\n

Several C-Suite leaders at some of the biggest carmakers voiced fresh unease about the electric car market\u2019s growth as concerns over the viability of these vehicles put their multi-billion-dollar electrification strategies at risk.<\/p>\n\n\n\n

Among those hand-wringing is GM\u2019s Mary Barra, historically one of the automotive industry\u2019s most bullish CEOs on the future of electric vehicles. GM has been an early-mover in the electric car market, selling the Chevrolet Bolt for seven years and making bold claims about a fully electric future for the company long before its competitors got on board.<\/p>\n\n\n\n

But this week on GM\u2019s third-quarter earnings call, Barra and GM struck a more sober tone. The company announced with its quarterly results that it\u2019s abandoning its targets to build 100,000 EVs in the second half of this year and another 400,000 by the first six months of 2024. GM doesn\u2019t know when it will hit those targets.<\/p>\n\n\n\n

\u201cAs we get further into the transformation to EV, it\u2019s a bit bumpy,\u201d she said.<\/p>\n\n\n\n

While GM\u2019s about-face was somewhat of a surprise to investors, the Detroit car company is not alone in this new view of the EV future. Even Tesla\u2019s Elon Musk warned on a recent earnings call that economic concerns would lead to waning vehicle demand, even for the long-time EV market leader.<\/p>\n\n\n\n

Meanwhile, Mercedes-Benz \u2014 which is having to discount its EVs by several thousand dollars just to get them in customers\u2019 hands \u2014 isn\u2019t mincing words about the state of the EV market.<\/p>\n\n\n\n

\u201cThis is a pretty brutal space,\u201d CFO Harald Wilhelm said on an analyst call. \u201cI can hardly imagine the current status quo is fully sustainable for everybody.\u201d<\/p>\n\n\n\n

EVs are getting harder to sell<\/strong><\/p>\n\n\n\n

But Mercedes isn\u2019t the only one; almost all current EV product is going for under sticker price these days, and on top of that, some EVs are seeing manufacturer\u2019s incentives of nearly 10%.<\/p>\n\n\n\n

That\u2019s as inventory builds up at dealerships, much to the chagrin of dealers. While car buyers are in luck if they\u2019re looking for a deal on a plug-in vehicle, executives are finding even significant markdowns and discounts aren\u2019t enough. These cars are taking dealers longer to sell compared with their gas counterparts as the next wave of buyers focus on cost, infrastructure challenges, and lifestyle barriers to adopting.<\/p>\n\n\n\n

Just a few months after dealers started coming forward to warn of slowing EV demand, manufacturers appear to be catching up to that reality. Ford was the first to fold, after dealers started turning away Mach-E allocations. In July, the company extended its self-imposed deadline to hit annual electric vehicle production of 600,000 by a year, and abandoned a 2026 target to build 2 million EVs.<\/p>\n\n\n\n

In scrapping plans with GM to co-develop sub-$30,000 EVs, Honda CEO Toshihiro Mibe said the shifting EV environment was difficult to gauge.<\/p>\n\n\n\n

\u201cAfter studying this for a year, we decided that this would be difficult as a business, so at the moment we are ending development of an affordable EV,\u201d Mibe said in an interview with Bloomberg this week.<\/p>\n\n\n\n

For some, this pullback is no surprise.<\/p>\n\n\n\n

\u201cPeople are finally seeing reality,\u201d Toyota Motor Chairman Akio Toyoda said at the Japan Mobility Show, the Wall Street Journal reported. Toyoda has long been skeptical of his peers\u2019 pure-electric blueprints.<\/p>\n\n\n\n

Full story<\/strong><\/a><\/p>\n\n\n\n

2) Ford hits the brakes on $12 billion in EV spending because EVs are too expensive\u00a0<\/strong>
The Verge, 26 October 2023<\/a><\/p>\n\n\n\n

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The car company says it isn\u2019t backing off its next-gen EVs, but it is pausing some big factory projects, including a plant in Kentucky.<\/mark><\/em><\/strong><\/p>\n\n\n\n

Ford is postponing $12 billion in EV factory building, including a planned battery factory in Kentucky. The reasons given were an unwillingness by customers to pay extra for its electric vehicles. You see, they\u2019re too expensive, and now Ford\u2019s massive transformation into an EV company is now going to take a lot longer than before.<\/p>\n\n\n\n

Ford\u2019s EV business continues to lose money<\/a>, around $1.3 billion this past quarter in adjusted earnings. So far this year, Ford has lost $3.1 billion on its EV spending and has said it\u2019s going to lose a total of $4 billion for the year.<\/p>\n\n\n\n

The Kentucky plant, a \u201cmega campus\u201d that builds lithium ion batteries for electric cars, would be put on hold<\/p>\n\n\n\n

The Kentucky plant, a \u201cmega campus\u201d<\/a> that builds lithium ion batteries for electric cars, will be put on hold. But its Blue Oval City project in Tennessee was still moving forward.<\/p>\n\n\n\n

Ford\u2019s not alone in all this, of course. General Motors is pushing back production<\/a> of its new slate of electric trucks and SUVs. Tesla CEO Elon Musk spent a large chuck of his last earnings call moaning about interest rates<\/a>. It\u2019s rough out there right now.<\/p>\n\n\n\n

Customers would probably agree. Most of the early adopters have, well, adopted, and the next tier of possible customers has enough sticker shock to keep their wallets closed.<\/p>\n\n\n\n

Full story<\/strong><\/a><\/p>\n\n\n\n

3) Honda, GM scrap $5 bln plan to co-develop cheaper EVs<\/strong>
Reuters, 25 October 2023<\/a><\/p>\n\n\n\n

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Honda Motor and General Motors are scrapping a plan to jointly develop affordable electric vehicles (EVs), the companies said on Wednesday, just a year after they agreed to work together in a $5 billion effort to try to beat Tesla (TSLA.O) in sales.<\/mark><\/em><\/strong><\/p>\n\n\n\n

The decision underscores GM\u2019s strategic shift to slow the launch of several EV models to focus on profitability, as it grapples with the rising cost of United Auto Workers strikes, which surged to $200 million a week this month.<\/p>\n\n\n\n

The U.S. automaker on Tuesday withdrew its previous 2023 profit outlook.<\/p>\n\n\n\n

\u201cAfter extensive studies and analysis, we have come to a mutual decision to discontinue the program. Each company remains committed to affordability in the EV market,\u201d the companies said in a joint statement.<\/p>\n\n\n\n

Honda said there was no change in its plan to sell only electrified vehicles by 2040.<\/p>\n\n\n\n

GM cited a joint statement that pointed to the projects the companies are still working on together in acknowledging the end of EV plan.<\/p>\n\n\n\n

Full story<\/strong><\/a><\/p>\n\n\n\n

4) Mercedes-Benz shares fall nearly 6% as profit falls over \u2018brutal\u2019 EV pricing<\/strong>
CNBC, 26 October 2023<\/a><\/p>\n\n\n\n

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Mercedes-Benz shares fell Thursday as it reported lower profit and revenue and highlighted pricing challenges in the electric vehicle space.<\/mark><\/em><\/strong><\/p>\n\n\n\n

Chief Financial Officer Harald Wilhelm described the EV market as \u201cpretty brutal space,\u201d Reuters reported.<\/p>\n\n\n\n

It comes as some traditional automakers sell EVs for less than regular combustion-engine cars \u2014 despite higher production costs.<\/p>\n\n\n\n

Mercedes-Benz shares were lower Thursday after the German carmaker reported a decline in profit and revenue as challenges from electrical vehicle competition to supply chains.<\/p>\n\n\n\n

Frankfurt-listed shares provisionally closed down 5.7%, putting the stock on course for its worst day since May 4, according to LSEG data.<\/p>\n\n\n\n

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The company said it had faced a \u201csubdued market environment marked by intense price competition,\u201d particularly in EVs.<\/p>\n\n\n\n

On an analyst call regarding the results, Chief Financial Officer Harald Wilhelm described the EV market as a \u201cpretty brutal space,\u201d Reuters reported. It comes as some traditional automakers sell EVs for less than regular combustion-engine cars \u2014 despite higher production costs.<\/p>\n\n\n\n

\u201cI can hardly imagine the current status quo is fully sustainable for everybody,\u201d Wilhelm said, according to the news agency.<\/p>\n\n\n\n

Group earnings before interest and taxes (EBIT) fell 7% to 4.8 billion euros ($5.06 billion) in the third quarter. Revenue was down 1.4% to 37.2 billion euros, below the consensus estimate, as passenger car sales dropped 5%, partially due to supply chain challenges.<\/p>\n\n\n\n

Full story<\/strong><\/a><\/p>\n\n\n\n

5) More alarm bells sound on slowing demand for electric vehicles<\/strong>
Reuters, 25 October 2023<\/a><\/p>\n\n\n\n

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High interest rates are derailing the ambitions of climate regulators and automakers to accelerate the shift to electric vehicles, underscored Wednesday by the scrapping of a GM-Honda partnership and a warning from a battery maker.<\/mark><\/em><\/strong><\/p>\n\n\n\n

Electric vehicle sales are still growing strongly, but that demand is not keeping up with the expectations of carmakers and other companies that have invested billions of dollars in the EV space. Expectations for persistently higher interest rates has led companies to alter plans as they eye 2024 warily.<\/p>\n\n\n\n

\u201cEV demand next year could be lower than expectations,\u201d Lee Chang-sil, chief financial officer at South Korean battery maker LG Energy Solution (373220.KS) said on Wednesday, due to global economic uncertainty.<\/p>\n\n\n\n

Also on Wednesday, Honda (7267.T) and General Motors (GM.N) announced they were ending a $5 billion plan to develop lower-cost EVs together just a year after announcing the effort. GM on Tuesday said it would focus near-term EV efforts on meeting demand rather than hitting specific volume targets.<\/p>\n\n\n\n

Full story<\/strong><\/a><\/p>\n\n\n\n

6) World\u2019s top wind firm profits tumble 98% in new blow to renewable energy<\/strong>
Bloomberg, 27 October 2023<\/a><\/p>\n\n\n\n

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Xinjiang Goldwind Science & Technology Co., the largest wind-turbine maker, said third-quarter profit tumbled in another blow to a renewables sector reeling from the impact of lower prices even as demand jumps.<\/mark><\/em><\/strong><\/p>\n\n\n\n

The producer\u2019s net income fell 98% to 9.4 million yuan ($1.29 million) in the three months ended Sept. 30 from a year earlier, the company said Thursday in a statement. Sales volumes in the first nine months were 8.9 gigawatts, up more than a quarter on the same period in 2022. Goldwind\u2019s shares fell as much as 5% intraday in Shenzhen on Friday.<\/p>\n\n\n\n

Asia\u2019s largest economy is accelerating deployment of renewable energy as it works to curb emissions and meet rising electricity demand. Though installations are rising, competition is intensifying among China\u2019s wind turbine producers and pushing prices lower.<\/p>\n\n\n\n

The sharp quarterly profit drop is due to higher selling expenses and research-and-development costs, Citigroup analyst Pierre Lau wrote in a note. Wind developers are facing higher project costs since all national subsidies expired in 2021 and regional governments require more local-economy contributions, Bloomberg NEF analyst Xiangyu Chen wrote last month.<\/p>\n\n\n\n

Clean energy technology manufacturers globally are struggling with rising costs and delays to some projects. Siemens Energy AG plunged more than a third Thursday after confirming it is in talks with the German government about state guarantees as it grapples with weakness in its wind-turbine unit.<\/p>\n\n\n\n

Full story<\/strong><\/a><\/p>\n\n\n\n

7) Siemens Energy shares slide 39% after company seeks state guarantees<\/strong>
Reuters, 26 October 2023<\/a><\/p>\n\n\n\n

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BERLIN, Oct 26 (Reuters) \u2013 Siemens Energy shares plunged nearly 40% on Thursday, wiping 3 billion euros ($3.16 billion) off its market value, after the group said it was in talks with the German government about state guarantees following big setbacks at its wind unit.<\/strong><\/p>\n\n\n\n

A spokesperson for the German economy ministry also confirmed the talks, describing them as \u201cclose and trustworthy\u201d.<\/p>\n\n\n\n

Siemens Energy shares slid to all-time lows on the news, implying a 3.3 billion euro loss in market value to 5.3 billion euros since Wednesday, and were down more than 32% at 7.20 euros by 1359 GMT.<\/p>\n\n\n\n

Quality problems emerged this year at the power engineering company\u2019s wind unit Siemens Gamesa centred on rotor blades and gears in newer onshore wind turbines, drawing the ire of top shareholder and former parent Siemens AG (SIEGn.DE).<\/p>\n\n\n\n

Siemens Gamesa has booked billions in related losses.<\/p>\n\n\n\n

As a result, Siemens Energy fears it will struggle to secure guarantees from banks, and has approached the government and Siemens to obtain a guarantee framework, business news weekly WirtschaftsWoche said.<\/p>\n\n\n\n

The weekly, which first reported the talks along with Spiegel magazine, said Siemens Energy is seeking up to 15 billion euros in guarantees\u2026.<\/p>\n\n\n\n

8) Siemens Energy\u2019s faulty wind turbines become Germany\u2019s \u20ac16 billion problem<\/strong>
Bloomberg, 27 October 2023<\/a><\/p>\n\n\n\n

With its biggest shareholder Siemens withdrawing support, the gas turbine and grid technology maker was forced to seek a \u20ac16 billion backstop from the government.<\/strong><\/p>\n\n\n\n

The history of Siemens is the history of electricity. After Werner von Siemens set up shop in a Berlin workshop in 1847, his improved design for the electric telegraph won him the contract to build Europe\u2019s first long-distance cable. His company became an industrial behemoth, making everything from light bulbs to giant turbines for power stations.<\/p>\n\n\n\n

The company has morphed many times since, and more recently spawned multiple listed businesses making chips, healthcare screening equipment \u2014 and wind turbines. Just like other parts of German industry, one of Siemens AG\u2019s former units has hit a roadblock as the green energy transition reshapes global business.<\/p>\n\n\n\n

In 2017, Siemens, already a major builder of offshore wind turbines, bought Spanish rival Gamesa SA to create the world\u2019s biggest installer. Then-Chief Executive Officer Joe Kaeser described the move as having a \u201cclear and compelling industrial logic.\u201d<\/p>\n\n\n\n

Six years later and the sure-fire bet on surging appetite for carbon-free electricity has turned close to catastrophic. A fault in thousands of wind turbines has left Siemens Energy AG, spun out of the mothership in 2020, on the hook for a repair bill of at least \u20ac1.6 billion ($1.7 billion) alongside an expected \u20ac4.5 billion net loss for the year.<\/p>\n\n\n\n

With its biggest shareholder Siemens withdrawing support, the gas turbine and grid technology maker was forced to seek a \u20ac16 billion backstop from the government, while it\u2019s still working on how to address the faulty turbines.<\/p>\n\n\n\n

Investors responded by wiping out more than a third of the company\u2019s value, the second such move this year.<\/p>\n\n\n\n

Full story<\/strong><\/a><\/p>\n\n\n\n

9) Shell takes axe to its eco-friendly business as oil giant focuses on digging up fossil fuels<\/strong>
Forbes, 26 October 2023<\/a><\/p>\n\n\n\n

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Shell has taken another axe to its once lofty decarbonization plans, as the U.K. oil giant\u2019s pivot back to fossil fuels picks up steam.<\/strong><\/p>\n\n\n\n

The group plans to cut at least 15% of staff working in its low-carbon solutions division while scaling back its hydrogen business, Reuters first reported Wednesday.<\/p>\n\n\n\n

The move will see 200 jobs go in 2024, with another 130 placed under review by the company, according to a statement from Shell.<\/p>\n\n\n\n

The division specializes in solutions to decarbonize the transport and industry sector, but is separate from its renewables business. The focus of the cuts is its hydrogen light mobility unit, which develops technologies for passenger vehicles. The unit\u2019s ambitions have been clipped as customers opt for EVs.<\/p>\n\n\n\n

\u201cWe are transforming our Low Carbon Solutions (LCS) business to strengthen its delivery on our core low-carbon business areas such as transport and industry,\u201d a representative for Shell told Fortune.<\/p>\n\n\n\n

\u201cWe remain committed to investing in viable low-carbon business models and focusing on our strengths as we play our part in decarbonization of the global energy system.\u201d<\/p>\n\n\n\n

There are 1,300 people working in the LCS division, Reuters reported, but the company has said that isn\u2019t a full reflection of the people contributing to the unit.<\/p>\n\n\n\n

It\u2019s the latest move from CEO Wael Sawan, who joined in January, that pivots Shell back to fossil fuels.<\/p>\n\n\n\n

Full story<\/strong><\/p>\n\n\n\n

10) Swiss shift rightwards in vote as immigration fears trump green agenda<\/strong>
Reuters, 23 October 2023<\/a><\/p>\n\n\n\n

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ZURICH (Reuters) \u2013 Switzerland moved rightwards in an election on Sunday, giving the right-wing Swiss People\u2019s Party (SVP) more seats in parliament as concerns about rising immigration outweighed those about the environment, final results showed on Monday.<\/strong><\/p>\n\n\n\n

While the change is unlikely to alter the make up of the country\u2019s governing Federal Council consisting of seven members from four different parties \u2013 including two from the SVP \u2013 analysts said it pointed to a shift in the political climate.<\/p>\n\n\n\n

The result suggests a move away from progressive themes like the environment and transport, and a return to conservatism, they said, after a period marked by crises such as the COVID-19 pandemic and the war in Ukraine.<\/p>\n\n\n\n

The SVP cemented its place as the biggest group in parliament\u2019s lower house, increasing its share of the vote to 28.6%, according to data from the Swiss Federal Statistics Office.<\/p>\n\n\n\n

The increase \u2013 3 percentage points higher than the 2019 election \u2013 means the SVP gets 62 seats in the 200 member National Council, nine more than it had before.<\/p>\n\n\n\n

The outcome was also seen as a rebuff of parties seen as representing the political elite who have been criticised for being out of touch with ordinary voters as the cost of living \u2013 particularly of health care \u2013 rises.<\/p>\n\n\n\n

\u201cThe consequences of the left-green asylum, immigration and energy policies are devastating for our country,\u201d the SVP said in a statement late on Sunday.<\/p>\n\n\n\n

Full story<\/strong><\/a><\/p>\n\n\n\n

11) Britain risks becoming dependent on oil and gas imports as North Sea production dries up<\/strong>
The Daily Telegraph, 26 October 2023<\/a><\/p>\n\n\n\n

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Britain is on track to become reliant on imported oil and gas as North Sea production dries up faster than demand for the fuels declines.<\/strong><\/p>\n\n\n\n

New forecasts from the North Sea Transition Authority (NSTA) show oil and gas production will dwindle to near zero over the next two to three decades, leaving the nation largely dependent on imports.<\/p>\n\n\n\n

The NSTA\u2019s latest projections suggest UK gas production will fall 94pc by 2050, from 38bn cubic metres in 2022 to just 2bn by the middle of the century. Oil output will fall from 35m tonnes to just 7m tonnes over the same period.<\/p>\n\n\n\n

North Sea production is set to fall much faster than any corresponding fall in demand, creating an energy gap that will have to be filled by imports.<\/p>\n\n\n\n

The Climate Change Committee predicts the UK will still need 14m tonnes of oil and 19bn cubic metres of gas a year in 2050.<\/p>\n\n\n\n

Those figures are based on the UK meeting its carbon budgets, which it has so far failed to do. If those failures continue, demand for oil and gas will be much higher.<\/p>\n\n\n\n

Andy Brooks, NSTA director of new ventures, said: \u201cOil and gas currently meet three-quarters of the UK\u2019s energy needs and projections suggest they will both play an important role in the energy mix for decades to come.\u201d<\/p>\n\n\n\n

Britain imported 47m tonnes of oil last year, mostly from Norway and the United States. About 41bn cubic metres of gas came from abroad, with the vast majority from Norway and the rest coming mainly from the US and Qatar as liquefied natural gas (LNG).<\/p>\n\n\n\n

Energy companies have recently signed long-term deals to supply Qatari gas to France, the Netherlands and Italy, while Germany already has a similar deal in place. All stretch out to at least 2050.<\/p>\n\n\n\n

Full story<\/strong><\/a><\/p>\n\n\n\n

12) Tilak Doshi: Climate change hurts the poor: but not the way you think it does<\/strong>
Forbes, 26 October 2023<\/a><\/p>\n\n\n\n

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Moves to \u201cfight climate change\u201d are precisely what is hurting the poor most. It is not \u201cclimate change\u201d but the policies adopted in response to it that are the problem afflicting the poor the most.<\/strong><\/p>\n\n\n\n

\u201cClimate impacts hit the world\u2019s poor the hardest\u201d. By sheer dint of repetition in countless \u201cexpert\u201d reports and mass media articles, this line in the climate change narrative has become a truism. According to the International Monetary Fund, \u201cby hitting the poorest hardest, climate change risks both increasing existing economic inequalities and causing people to fall into poverty.\u201d The World Economic Forum states that \u201cthe lowest income countries produce one-tenth of emissions, but are the most heavily impacted by climate change.\u201d<\/p>\n\n\n\n

It would seem straightforward that resolving the \u201cclimate change\u201d problem would serve the poor the most, given that they are the hardest hit. But, by a tragic turn of irony, moves to \u201cfight climate change\u201d are precisely what is hurting the poor most. It is not \u201cclimate change\u201d but the policies adopted in response to it that are the problem afflicting the poor the most.<\/p>\n\n\n\n

\u201cFighting climate change\u201d \u2014 which for most Western politicians and policy makers means achieving the \u201cnet-zero [carbon emissions] by 2050\u201d policy target of the UN Paris Agreement \u2014 has thus also become a fight for the world\u2019s most poor and vulnerable. That the climate industrial complex claims the interests of the world\u2019s poor within its \u2018net zero\u2019 agenda is a powerful lever in public relations.<\/p>\n\n\n\n

The call to \u201csave the planet\u201d includes, by definition, ensuring the welfare of the world\u2019s poor. But making the fight even more so about helping \u201cthe most vulnerable\u201d gives the narrative of \u201cfighting climate change\u201d a philanthropic edge. Philanthropy is universally admired, like Mother Theresa. It is a particularly attractive hobby for the rich who have made their fortune and want to \u201cgive back\u201d to society. Thus, Bill Gates\u2019 or Michael Bloomberg\u2019s self-proclaimed philanthropic interests in the global poor, public health and climate change.<\/p>\n\n\n\n

When discussions of climate change issues turn to helping the poor and the vulnerable, Africa quickly becomes the center of attention. Africa is the world\u2019s second largest and second-most populous continent, both after Asia. The share of the sub-Sahara African population living in extreme poverty, defined as those living on less than $2.15 per day (in international dollars adjusted for cost-of-living differences among countries), was 35% in 2021. This compared to the world average of 8.4%.<\/p>\n\n\n\n

In 2019, out of the world total of almost 760 million people without access to electricity, sub-Saharan Africa accounted for almost 590 million or approximately 78%. Without electricity or clean fuels such as natural gas, keeping warm (or cool), getting drinking water, cooking food cleanly, and getting enough light to read after the sun sets is not possible.<\/p>\n\n\n\n

Most of us who take affordable electricity \u201824\/7\u2019 supply for granted are unaware of the existential constraint on people\u2019s daily lives that a lack of electricity implies. This was brought home brilliantly by Geoff Hill at a talk in House of Lords in Westminster on Monday. Geoff is Africa correspondent for The Washington Times, the first non-American John Steinbeck Award winner and has published with the Mail & Guardian (Johannesburg), The East African (Nairobi) and across the African continent.<\/p>\n\n\n\n

With electricity unavailable or too expensive for 600-million people in Africa, vast areas of forest are being denuded for fuelwood or charcoal to cook and to warm homes by those who have no other fuel. Faced with buying logs from a plantation or cutting them for free in the wild, people who don\u2019t have enough money for food choose the latter. With deforestation, the land degrades and soon enough there\u2019s a desert where the jungle once stood.<\/p>\n\n\n\n

As Geoff points out<\/a>, \u201cAfrica is losing its forest. Not just a few trees here and there: an area the size of Switzerland is cleared every year\u2026 A staggering 90% of the timber is used as firewood, commonly turned into charcoal, and sold in markets across the continent.\u201d There is a need for reliable energy, and at a price local people can afford. Without this, Geoff observes, the forest will continue to decline and, ultimately, vanish.<\/p>\n\n\n\n

The impact of indoor pollution due to cooking with dirty solid fuels like charcoal and firewood on respiratory health and mortality on Africans is severe. The death rate in Africa from indoor pollution in 2019 was three times that of the global average. While 69% of the world\u2019s population had access to clean fuels for cooking (such as LPG or electricity), only 19% of Africa\u2019s population did so in 2020. Conversely, the percentage of Africa\u2019s population using dirty solid fuels (such as dung, firewood, or charcoal) for cooking was 77% in 2010; the world average was 41%. Mr. Hill cites a global study which puts the mortality rate in Africa as higher than AIDS, malaria and TB combined.<\/p>\n\n\n\n

Africa \u2014 home to giant river systems including the Nile, Congo, Zambezi and Volta \u2014 has abundant water. Dams and lakes are plentiful. But the challenge lies in getting water to where it is needed. Urbanization in Africa has been very rapid over the past 50 years, creating some of the world\u2019s largest cities. Urban demand for water is huge and supply is often pitiful. \u201cWithout water, hospitals can\u2019t function, schools close, factories often must shut for hours at a time, food can\u2019t be washed and diseases such as typhoid and cholera begin to spread.\u201d As Mr. Hill shows, the chronic water problems<\/a> of African cities \u2013 either poor or undrinkable supply \u2013 mostly come down to a shortage of electricity required to pump water to where it is needed.<\/p>\n\n\n\n

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See also:70% of Africa\u2019s forest is gone. Without affordable energy it will vanish<\/strong><\/p>\n\n\n\n