A $200 billion wave of new gas projects could lead to a “climate bomb” equivalent to emitting the annual emissions of all operating coal-fired power plants worldwide, according to a report. be.
Big banks are investing $213 billion in plans to build terminals to import and export gas, which will be transported in refrigerated ocean tankers. But one report warns that the damage could be worse than coal-fired power generation.
A report compiled by climate change organization Reclaim Finance found that the world's economy has changed in recent years, driven by the transition from coal to gas in developing countries and Russia's war against Ukraine, which led to pipeline imports to Europe. It was revealed that projects promoting gas trade are rapidly increasing. Wither.
It was found that 8 liquefied natural gas (LNG) export terminal projects and 99 import terminal projects were completed in the past two years, increasing global export capacity by 7% and global import capacity by 19%. .
Additionally, LNG developers plan to build 156 new LNG terminal projects around the world by 2030, of which 63 will be export terminals and 93 will be import terminals, the report said.
The group said methane leaks could generate an estimated 10 gigatonnes of greenhouse gas emissions from these terminals by the end of this decade, more than all coal-fired power plants in operation around the world. It warned that the amount could be almost the same as annual emissions.
Justine Duclos-Gonda, an activist with Reclaim Finance, said: “Oil and gas companies are betting their future on LNG projects, but any planned project is putting the future of the Paris Agreement at risk. Investors claim to be supporting oil and gas companies in transition, but instead they are investing billions of dollars in future climate solutions.”
The latest findings are expected to raise concerns that unchecked investment in the global gas market could lead to a gas glut and threaten global climate goals.
The International Energy Agency warned last month that the global LNG market was headed for an unprecedented gas glut that would be inconsistent with preventing global temperatures from rising more than 2.4 degrees Celsius above pre-industrial levels.
The agency warned that global LNG production capacity is on track to increase by almost 50% by 2030, outpacing global gas demand projections in all three scenarios modeled by the agency.
This oversupply is expected to lead to a fall in fossil fuel prices, which could encourage reliance on cheaper gas in favor of renewable energy technologies and improved energy efficiency, further calling into question climate goals. may be thrown.
The IEA says the price of gas imported into the EU will fall from an average record high of more than $70 (£54) per million British thermal units (MBtu) in 2022 to $6.50 (£5) by the end of the year. I'm predicting it. over the past decade following a boom in planned gas projects in recent years.
“LNG is a fossil fuel and new projects play no role in a sustainable transition,” Duclos-Gonda said. “Banks and investors must take responsibility and immediately stop supporting LNG developers and new terminals.”
Although most major banks have set targets for the transition to 'net-zero' banking, none have a specific policy on financing LNG projects, and this despite climate change targets. This means investment is allowed to continue, the report warned.
