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July 2025ContentsAbout this ReportThe Haze Outlook 2025 report provides a risk assessment of the probability of a transboundary haze incident affecting Indonesia,Malaysia,and Singapore for the year ahead.This is based on research conducted by the Singapore Institute of International Affairs(SIIA),a leading think tank in the region.The Haze Outlook 2025 is the seventh edition of this assessment.It is directed by Simon Tay,Chairman,SIIA and Associate Professor,Faculty of Law National University of Singapore.The authors are Khor Yu-Leng and Aaron Choo,respectively Associate Director(Sustainability)and Senior Assistant Director(Special Projects and Sustainability),SIIA,with Abigael Eminza and Claudia Nyon,who are Research Associates at Segi Enam Advisors.All views expressed in the report are those of the authors,unless otherwise credited.Our research includes quantitative information on weather factors,the impact of fires,and commodity prices.We also qualitatively consider government policies and private sector practices.These assessments are based on the SIIAs engagement with sustainability stakeholders in the region.In particular,the authors would like to thank the following for their assistance and insights over the past year(in alphabetical order):Ambank Berhad,ASEAN Specialised Meteorological Centre(ASMC),Asia Pacific Resources International Limited(APRIL)Group,Bumitama Agri,Euro Asian Investment Holding,Glenauk Economics,Golden Agri-Resources(GAR),Indonesian Palm Oil Association(GAPKI),ISTA Mielke GmbH/Oil World,Landscape Indonesia,Musim Mas,PM Haze,Roundtable on Sustainable Palm Oil(RSPO),World Resources Institute(WRI)Indonesia.We are also grateful to government officials of the region who have engaged with the SIIA for our sustainability programme.Established in 1962,the SIIA is a not-for-profit and independent think tank committed to fostering in-depth dialogues around politics,economic policy,and sustainability in ASEAN and the wider region.It is a founding member of the ASEAN-ISIS Network of think tanks for Track II engagement and convenes the ASEAN Think Tank Summit.In the field of sustainability and especially on the haze,the SIIA has been an early analyst and advocate.The SIIA championed the fight against the transboundary haze from 1997,when we co-organised Singapores first haze dialogue chaired by Simon Tay.Following the severe transboundary haze in 2013,the SIIA established the Singapore Dialogue on Sustainable World Resources(SWR)in 2014 which has since become a leading platform for discussion in the region about key sustainability challenges including the haze.1.ExecutiveSummary12.IssuestoWatchin20253 2.1.Weather:Milder and Shorter Dry Season in 2025 3 2.2.Markets:Short Term Resilience,Long Term Concerns 4 2.3.Policies:Progress and Future Challenges 73.QualitativeRiskAssessmentandConclusion10Annexes 11 Annex 1:Literature Review 11 Annex 2:Case Study on Peatland and Mangrove Restoration 13 Annex 3:EUDR and Digital Traceability 14References 15Amber1.ExecutiveSummaryGreen:Low riskAmber:Medium riskRed:High riskRiskofaTransboundaryHazeEventin2025:OurassessmentisthatthereisanAmberormediumriskofaseveretransboundaryhazeeventaffectingIndonesia,Malaysia,andSingaporefortherestof2025,on a scale of green,amber,and red,where red is the highest risk.Agricultural prices are elevated and there has been some uptick in deforestation,increasing the risk of fires and haze.There was an escalation in hotspots and smoke haze in parts of Sumatra in mid-July,with transboundary haze observed to drift from central Sumatra into parts of Peninsular Malaysia,affecting air quality there.There are also economic and policy shifts that may inadvertently trigger deforestation and higher haze risk,if fire is used to clear land.Increases in agricultural output are needed to meet rising demand for food security and energy.Care must be taken that this is done in a sustainable fashion and to avoid creating more fire-prone conditions.In the medium to long term,climate trends also suggest that another unusually dry season may occur around 2027-2030.Our assessment is based on three areas:weather,markets,and policies,and is informed by our engagement with governments,businesses,think tanks,and NGOs.Weather:The haze results from fires in the region and drier weather has driven past episodes of haze.For the remaining months of 2025,meteorologists are expecting a milder and shorter dry season peaking in August.The risk from weather is relatively benign for now,though the fires in late July show that weather is changeable and some areas remain fire-prone.Looking ahead,some suggest that another extreme hot and dry period could occur around 2027-2030.The ASEAN region must remain prepared to face future extreme weather events and fire seasons amidst a warming global climate.Markets:Fires that cause the haze are often linked to agricultural activity in the region and in commodity industries such as palm oil,pulp and paper,and others.Historically,spikes in agricultural commodity prices have been followed by increases in deforestation.Prices this year are elevated,and estimates show some uptick in deforestation in Indonesia from 2023 to 2024.Policies:Government and private sector efforts are crucial to keeping fires and haze under control,and to ensure that forests and plantations are sustainably managed.Indonesia has made significant strides in sustainable forestry and emissions reduction under the Jokowi administration,including a 2021 commitment to make its forestry and land use(FOLU)sector a net carbon sink by 2030.Fire incidents in 2024 remained low.The current Prabowo administration has said it will continue forest management policies.However,Indonesia faces a triple challenge in meeting food security,energy,and export imperatives.The question of food versus fuel is rising in prominence,especially as Indonesia plans to increase its biodiesel mandate alongside introducing a new bioethanol mandate for gasoline.NGOs such as Mighty Earth and environmental media organisations like Mongabay have said that Indonesias food and energy projects could result in more clearing of forests and peatlands.Care is needed to ensure that efforts to create new plantations are sustainable,and to increase the efficiency of existing plantations.1DeforestationandDemandEstimates by think tank Auriga Nusantara(Figure 1)show an uptick in deforestation in Indonesia between 2023 and 2024.This includes an uptick in provinces in Sumatra near Singapore and Peninsular Malaysia,where fires have spiked in July 2025.Despite some plantation expansion in recent years,analysts fear that supply is still lagging behind demand,pushing up the price of commodities.Palm oil produced in Indonesia and Malaysia is usually the worlds cheapest vegetable oil,but it has traded at a higher price than soybean oil at key destinations for nine consecutive months.Latin America,a major producer of soybeans,is the current global frontier for agricultural expansion.EconomicandPolicyShiftsAt the international level,commodity markets have so far stayed resilient despite imminent US tariffs.Another change which could affect markets is the EU Regulation on Deforestation-free products(EUDR),which will be implemented from 30 December 2025.Questions remain about its impact,and Indonesia has called for the EUDR to be further delayed to 2028.At the national level,the Prabowo administration is exploring plantation development in Papua and transferring control of land across the country to a new state-owned enterprise called Agrinas,alongside promoting downstreaming of its industries.There is also an ongoing court case against three companies accused of circumventing palm oil export restrictions in 2022.In July 2025,Coordinating Minister for Political and Security Affairs Budi Gunawan asked Indonesian agencies to increase firefighting efforts as transboundary haze was affecting neighbouring countries.This signals that the government is placing businesses under scrutiny,and is taking haze as an important issue.Our assessment is there is an Amber or medium risk of a severe transboundary haze event for the rest of 2025 though even if this occurs,the haze should not be as prolonged as the incidents in 1997-1998 and 2015.As our Haze Outlook in 2024 was Green,this is a concerning shift.Good policies are needed to ensure that ASEAN is not at the mercy of the weather when it comes to preventing haze.Regional cooperation plays a significant role and must be enhanced through the ASEAN Meeting of the Technical Working Group(TWG)and Sub-Regional Ministerial Steering Committee on Transboundary Haze Pollution(MSC)and other mechanisms.Figure1:DecliningdeforestationinIndonesiaSource:Chart and table from Simontini(2025),based on 2023 and 2024 estimates from Auriga Nusantara,and historical data from the University of Maryland and Ministry of Forestry,IndonesiaDeforestationinIndonesia,2001-2004200,000600,000800,000400,0001,000,0000Deforestation(ha)200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024TopTenProvincesforDeforestation,2024(hectares)2023West Kalimantan35,162Central Kalimantan30,433East Kalimantan28,633Central Sulawesi16,679South Kalimantan16,067North Kalimantan14,316Riau13,268South Papua12,640Central Papua11,336West Papua10,99027otherprovinces67,8582024East Kalimantan44,483West Kalimantan39,598Central Kalimantan33,389Riau20,812South Sumatra20,184Jambi14,839Aceh8,962North Kalimantan8,767Bangka Belitung7,956North Sumatra7,30327otherprovinces55,28222.IssuestoWatchin20252.1.Weather:MilderandShorterDrySeasonin2025The 2025 dry season has already seen a spike in fires in Sumatra,resulting in some transboundary haze affecting parts of peninsula Malaysia.However,the remainder of the dry season in 2025 is expected to be milder and shorter than most past dry seasons,peaking in August.For now,the weather is relatively benign,and fires can be kept under control unless the situation changes.Past haze incidents have frequently coincided with intense drought periods,corresponding to the positive phase of the El NioSouthern Oscillation(ENSO)and Indian Ocean Dipole(IOD)phenomena most recently in 2023,2019,and 2015(see Figure 2).ENSO refers to variations in sea-surface temperatures,rainfall,surface air pressure,and atmospheric circulation across the equatorial Pacific Ocean,while IOD is a similar phenomenon for the Indian Ocean.For the ASEAN region,the positive phases of both phenomenon bring drier conditions,while the negative phases correspond to wetter conditions.For 2025,ENSO-neutral conditions are expected for the remainder of 2025,through to early next year,while IOD is also expected to be neutral or negative.Southern ASEAN countries are still experiencing a dry season in the latter half of the year,but this is expected to be a relatively mild and shorter dry season.Figure2:ElNio-SouthernOscillation(ENSO)andIndianOceanDipole(IOD)Source:Khor Reports-Segi Enam Advisors(2025),based on data from the US National Oceanic and Atmospheric Administration(NOAA)for 1995 to April 2025,Australias Bureau of Meteorology(BOM)for May and June 2025 and forecasts compiled to Dec 2025.ENSO-The Oceanic Nio Index(ONI;brown)and IOD-Dipole Mode Index(DMI;green)-positive and higher index points to dryer weather and larger negative index points to wetter weather.Australia BOM forecasts neutral ENSO and neutral-negative IOD for end 2025.Labelled intervals on x-axis are for Dec,Jan,Feb(DJF)at start of each year.3.01.52.01.0-2.0-1.01.00.5-1.0-0.50.00.0ENSO-ONI(left axis)IOD-DMI(right axis, ve is fire risk,-ve is wet risk)1995 DJF1996 DJF1997 DJF1998 DJF1999 DJF2000 DJF2001 DJF2002 DJF2003 DJF2004 DJF2005 DJF2006 DJF2007 DJF2008 DJF2009 DJF2010 DJF2011 DJF2012 DJF2013 DJF2014 DJF2015 DJF2016 DJF2017 DJF2018 DJF2019 DJF2020 DJF2021 DJF2022 DJF2023 DJF2024 DJF2025 DJF3 The US National Oceanic and Atmospheric Administration(NOAA)reports a transition from La Nia conditions to ENSO-neutral during February-April 2025,with conditions persisting in June-August.For November-January,chances are 48 per cent ENSO-neutral and 41 per cent La Nia(NCEP,2025).The ASEAN Specialised Meteorological Centre(ASMC)notes that most models predict ENSO-neutral conditions from July-September 2025(ASMC,2025).Indonesias Meteorological,Climatological,and Geophysical Agency(Badan Meteorologi,Klimatologi,dan Geofisika or BMKG)concurs with the ENSO-neutral prediction.BMKG also predicts that the country will have a shorter-than-normal dry season,beginning gradually in June 2025,reaching its peak between July and August,and concluding before the end of September(UMS,2025).Australias Bureau of Meteorology(BOM)forecasts that IOD will remain neutral until July,and may shift to negative after July(BOM,2025).Notwithstanding the conditions in 2025,it is possible that another severely hot and dry season could occur between 2027 to 2030.The interval between IOD events is unpredictable.El Nio events are also irregular,but in general a El Nio period occurs every three to five years.The last El Nio was in 2023-2024,meaning that another could take place towards the end of this decade.If the El Nio is strong,and if this coincides with a positive IOD,it would increase fire and haze risk for that year.Beyond 2025,the ASEAN region still needs to remain on guard against human-induced activities that result in fires during future dry seasons.2.2.Markets:ShortTermResilience,LongTermConcernsThe Haze Outlook analyses market trends to determine if there are any factors increasing haze risk,comparing agricultural commodity futures to estimates of deforestation and plantation expansion.Historically,spikes in prices have been followed in subsequent years by rises in deforestation.Prices are currently elevated,and there has been a uptick in deforestation between 2023-2024,including in provinces in Sumatra,according to think tank estimates.Despite this uptick,analysts are concerned that plantation expansion and agricultural commodities supply are still lagging behind demand.This could further drive up prices.Notably,palm oil,a major export of Indonesia and Malaysia,has typically been the lowest-cost vegetable oil in recent history.However,in an unprecedented development,palm oil has been trading at higher prices compared to competing vegetable oils such as soybean in some key destinations for nine consecutive months.The global frontier for agricultural expansion is now Latin America,which is a major producer of soybeans and other agricultural products.Agricultural markets are connected and shifts in one market affect others elsewhere.USTariffsThe current high prices of palm oil and other agricultural exports from ASEAN are due to lagging supply versus rising global and regional demand,and are not directly related to the Trump administrations trade tariffs.Some ASEAN economies are more exposed to impacts from US tariffs,but US demand for Indonesian and Malaysian palm oil is seen as relatively inelastic.Even if US demand is affected,Indonesia and Malaysia have diversified export portfolios and can count on strong domestic demand for their own agricultural products to offset shifts in American demand.For the moment,US tariffs are therefore not having a strong effect on Indonesia and Malaysias agricultural sectors,though this could change as the situation develops.The US is a significant buyer of palm oil,but it is far from the largest.Indonesia is by far the worlds leading exporter of palm oil,and its palm oil trade with the US accounts for 7 per cent of its total export volume.This makes it fourth-ranked as an export market for Indonesia,behind China,India,and Pakistan,around the same level as the EU.4EUDRThere are also questions surrounding agricultural commodities trade with the EU,as the European Unions Regulation on Deforestation-free products(EUDR)is now scheduled to take effect for large companies from 30 December 2025,following a one-year delay(see Annex 3).The EUDR covers seven commodity categories and aims to ensure that products traded and consumed in the EU are not linked to deforestation.There has been some controversy over the regulation,with critics contending that the due diligence and data requirements of the EUDR are too stringent,particularly for smallholder farmers.Talks between the EU and its trading partners,including a trilateral Ad Hoc Joint Task Force(JTF)involving the European Commission,Indonesia,and Malaysia have made progress.The EU has streamlined the EUDRs reporting requirements,making compliance easier for businesses,but the matter of smallholder inclusion in supply chains has largely been left to the origin countries.Indonesia and Malaysia have created digital platforms to facilitate EUDR compliance,providing legality and traceability information.Smallholder farmers are included in these national systems.The platforms are intended to allow international buyers and trader-processors to file their EUDR due diligence submissions while still respecting Indonesian and Malaysian laws on data protection.However,it remains to be seen whether these systems will be fully embraced by buyers and EU officials,and consequently whether the EUDR will have lasting effects on trade flows.Indonesia has called for the EUDRs implementation to be further postponed to 2028 to allow all parties more time to prepare.CommodityPriceandDeforestationTrendsPrior to 2015,surges in agricultural commodity prices were typically followed by increases in tree cover loss and primary forest loss in Indonesia over subsequent years.Figure 3 shows total tree cover loss and primary forest loss in Indonesia represented by light and dark grey dashed lines,based on data from the World Resources Institutes(WRI)Global Forest Watch(GFW)platform.This data is compared,over time,to benchmark futures prices for selected key agricultural commodities in coloured lines.The severe fires and haze in 2015 acted as a wake-up call for policymakers and businesses.Since 2015,some change in tree cover has occasionally followed price increases.But tree cover is a general term including plantations.Shifts in tree cover could reflect replanting or a change from one plantation type to another.From 2015 to 2019,the rate of primary forest loss,referring to natural ecosystems,trended downward or remained largely flat despite commodity price shifts.Policy moves such as Indonesias permanent moratorium on new plantations on forest and peatland proved effective in reducing deforestation.Commentators note that there has been a shift from illegal deforestation to legal clearing within government-approved concessions(Jong,2025)in recent years.However,the situation since 2020 has been more complex than the 2015-2019 period.Think tank Auriga Nusantara(see Figure 1)estimates that there was an uptick in deforestation in Indonesia from 2023 to 2024,around 1.6 per cent.5Deforestation figures do not necessarily translate directly to the expansion of plantations.Figure 4 shows estimates on plantation expansion from consultancy The TreeMap(2025a,2025b)which operates the Nusantara Atlas platform.In 2023,there was a spike in industrial oil palm plantation expansion in Indonesia,though this came down by 9 per cent in 2024 compared to the previous year.For 2024,oil palm plantations expanded by 117,139 hectares.Pulpwood plantation expansion trended upwards from 2019 to 2022,though based on current estimates the expansion has declined year-on-year in both 2023 and 2024.Most of the pulpwood expansion seen in 2024 was on just two corporate concessions,rather than reflecting widespread activity by several companies.Figure3:DeforestationinIndonesiacomparedtocommoditypricesNote:Commodity futures price indices are relative to January 2000 as 100,deforestation rates in dashed lines are in millions of hectaresSource:Khor Reports Segi Enam Advisors(2025),based on data from the World Bank for palm oil and rubber futures,FastMarkets for pulp,and Global Forest Watch for primary forest and tree cover loss estimates.Benchmark futures prices used are Refined,Bleached and Deodorised(RBD)palm oil traded on Bursa Malaysia(dark green line),Technically Specified Rubber(TSR,light green line),and Northern Bleached Softwood Kraft or NBSK in China(brown line).2.50.00.51.52.01.07000100500600300400200200020052010201520202025Palm oil,RBD Malaysia($/mt)Rubber,TSR20($/kg)-indexPulp,NBSK-China($/mt)-indexIndonesia tree cover loss(GFW est.mill ha for the year)-right axisIndonesia primary forest loss(GFW est.mill ha for the year)-right axisIndonesias tree cover and primary forest loss(est.million hectares;grey dashed lines)and selected export commodity price indices(Jan 2000=100)6AchievingSustainableGrowthSome analysts such as Thomas Mielke,Editor and CEO of Oil World,note that while a decline in oil palm plantation expansion and related deforestation is positive from an environmental standpoint,the gap between supply growth versus increasing demand is concerning from an economic standpoint.Sustainable plantation development in non-forest areas is still needed,alongside a scaling up of efforts to replant aging areas with seeds that have been properly certified as good planting material.Efforts are also needed to address inefficient management in existing plantations,not just within the private sector but including government-linked businesses.2.3.Policies:ProgressandFutureChallengesGovernment and private sector efforts are crucial to keeping fires and haze under control,and in ensuring that forests and plantations are sustainably managed.The Haze Outlook explores government policies and private sector practices to understand the implications for haze risk.Between 2014 and 2024,Indonesian President Joko Widodo,properly known as Jokowi,led his administration in making major progress in haze prevention and ecosystem restoration.These policies are continuing under current Indonesian President Prabowo Subianto,who remains closely allied with his predecessor.Mr Prabowos Vice President,Gibran Rakabuming Raka,is Mr Jokowis eldest son.Indonesia agricultural industries face the challenge of needing to meet domestic food security and energy security needs,while also still generating revenue from exports.Policymakers and businesses will need to work together to balance these objectives without putting pressure on land use.Figure4:Decreaseinoilpalmandpulpwoodexpansionin2024Note:Data does not include smallholder expansionSource:Chart extracts from TheTreeMap(2024),based on data from Landsat and Sentinel-2 Time-series2006004000100500300700PulpwoodExpansion(x1000ha)200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024Non-ForestForest2006004000100500300700IndustrialOilPalmExpansion(x1000ha)200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024Non-ForestForest7ProgressundertheJokowiAdministrationAs the largest nation in ASEAN with vast forest and peat landscapes,and where haze is most acutely felt,Mr Jokowi and his government,notably the Ministry of Environment and Forestry,played a vital role in addressing the haze issue at the central government level.One of the first major challenges Mr Jokowi faced in office was the 2015 transboundary haze crisis during his first year.This cemented haze as a key issue of his presidency and paved the way for several progressive initiatives targeting ecosystems and haze,such as the establishment of the Peatland Restoration Agency(BRG)in 2016,later renamed the Peatland and Mangrove Restoration Agency(BRGM).As of 2025,the agency reported that it had restored 1.6 million hectares of peatland and 84,396 hectares of mangroves.Following the 2015 haze incident,the government said that companies involved in burning would have their permits revoked,and prosecutions of corporations liable for fires increased significantly.For example,the Supreme Court ordered PT Kallista Alam to pay US$26 million in fines and reparations,while PT Nasional Sago Prima was fined US$91.7 million.These high-profile rulings set a precedent for the high cost of non-compliance.In November 2021,ahead of COP26 in Glasgow,Mr Jokowi signed a legally binding presidential regulation committing Indonesia to achieve a net carbon sink for the forestry and other land use(FOLU)sector by 2030.As FOLU accounts for nearly half of Indonesias emissions,this move marked a major step toward meeting its Paris Agreement targets.If successful,it could deliver up to 60 per cent of the countrys emissions reductions while directly addressing haze by curbing deforestation and peatland fires.In 2021,Mr Jokowi also issued a carbon pricing and trading regulation,including the prospect of carbon credit generation from ecosystem conservation and restoration projects.There has been no severe transboundary haze affecting Indonesia,Malaysia,and Singapore since 2019,though less intense transboundary haze episodes have occurred in 2023 and more recently in July 2025.ThePrabowoAdministrationandChallengesFacingIndonesiaMr Prabowo has signalled he will continue Mr Jokowis forest management policies but has also set new priorities for his administration.Mr Prabowo is placing a strong emphasis on national self-sufficiency,alongside setting a target to achieve 8 per cent GDP growth by the end of his first term.Mr Prabowos growth target is in line with long-term ambitions to make Indonesia a high-income economy by 2045.At the same time,Indonesia faces several challenges.Even before the global economic uncertainty triggered by US trade tariffs,Indonesias fiscal space was already constrained.The countrys debt levels remain relatively high.Mr Prabowos initiative to provide free meals to schoolchildren will create domestic consumption and growth but will also weigh on state spending.The Prabowo administration has indicated that agricultural commodities production,and in particular palm oil,will remain a major part of Indonesias economic strategy.Palm oil alone contributes 2.5 to 5 per cent of Indonesias GDP and supports 16 million jobs.Indonesias industries will have to meet both food security and energy needs,while continuing to generate export revenue.The new administration must ensure that the development of Indonesias agricultural sector is conducted sustainably,in tandem with continued protection of the environment.There are several key initiatives that bear watching.8DanantaraandAgrinas:The Prabowo administration has created Danantara,a second sovereign wealth fund.One of the new state companies linked to the fund is Agrinas,formed from the merger of three existing enterprises.The palm oil unit,Agrinas Palma Nusantara,is set to control up to one million hectares of area zoned for plantations.If fully realised,this could give Agrinas a 6 to 7 per cent market share of Indonesias national palm oil output.Development in Papua:Indonesian policymakers are hoping to create more food and energy estates in the province of Papua,one of the last remaining frontiers for development.However,land development costs in the province are high,and plans must ensure that community rights and sustainability standards are respected.DownstreamingIndustries:The Prabowo administration is prioritising downstreaming for the commodities sector,aiming to strengthen processing and refining within Indonesia turning palm oil into oleo food products,oleochemicals,and vitamin precursors.The Ministry of Investment and Downstream Industry/Indonesian Investment Coordinating Board(BKPM)is focusing mainly on palm oil,though other crops like coconut are being explored.BiofuelMandates:Indonesias efforts to encourage the use of biofuels began under the Jokowi administration.This push is intensifying under the Prabowo administration as part of the nations broader downstreaming strategy.In early 2025,Indonesia increased its biodiesel blend from B35 to B40,referring to a 40 per cent vegetable oil content in diesel fuel.The increase is consuming an amount of palm oil comparable to Indonesias annual exports to a market like the US and EU.The Prabowo administration hopes to achieve a B50 blend for biodiesel within Mr Prabowos term.The Prabowo administration is also looking at a bioethanol blend for gasoline,starting with E5 as early as 2026,using feedstock from the countrys sugar industry.93.QualitativeRiskAssessmentandConclusionThere is a medium risk of a severe transboundary haze incident affecting Indonesia,Malaysia,and Singapore in 2025,rated as Amber on a scale of green,amber,and red.This assessment is based on three areas:weather,markets,and policies.The dry season in the latter half of 2025 is expected to be around the long-term average for past seasons,or milder and shorter than usual.While there have already been spikes in fires in Sumatra and some transboundary haze has affected peninsula Malaysia,the weather situation is relatively benign.Fires can be kept under control unless the situation changes.Looking at markets,commodity prices are elevated and there has been an uptick in deforestation in Indonesia from 2023-2024,including in Sumatra,according to some estimates which could correspond to increased fire risk.This underscores the need for good land and fire management policy for haze prevention.There are several issues to watch that may impact haze risk in the longer term.El Nio climate events occur roughly every three to five years,and the last El Nio was in 2023-2024.The IOD is less predictable,but it is possible that a strong El Nio could occur again around 2027-2030,possibly coinciding with a positive IOD effect as well.If this happens,lower rainfall and higher temperatures would increase fire risk for the ASEAN region.As global warming intensifies,the frequency of extreme weather events may also rise.Trade tensions persist,and it remains to be seen what effect US tariffs will have on global agricultural commodity markets and plantation industry activity in the coming months.The implications of current high palm oil prices also remain unclear.Global market shifts will affect Indonesias plans to develop its agricultural sector and promote downstream industries.Much will depend on Indonesias governance of its plantation and commodities industry.A high-profile court case is currently ongoing at the Supreme Court level,involving representatives of three companies who are accused of circumventing Indonesian palm oil export restrictions in 2022.Businesses and investors are watching the situation closely.The fact that agricultural commodity supply is falling behind the worlds increasing demand will have ramifications for both national economies and the global economy.Arguably,the world still needs efforts to increase palm oil and other agricultural commodity output in ASEAN ideally via sustainable expansion on non-forest areas,conversion of other croplands,yield increases,and replanting of aging areas.While national level action is critical,regional cooperation continues to play a significant role and must be strengthened.ASEAN is taking steps to enhance multi-stakeholder partnerships to promote sustainable land management,such as through the ASEAN Meeting of the Technical Working Group(TWG)and Sub-Regional Ministerial Steering Committee on Transboundary Haze Pollution(MSC)meeting.At the 26th MSC meeting held on 10 July 2025 in Brunei,the meeting noted the progress made in implementing the Second Roadmap on ASEAN Cooperation towards Transboundary Haze Pollution Control with Means of Implementation(Haze-free Roadmap 2023-2030),which is essential in driving forward the shared vision of a Transboundary Haze-Free ASEAN by 2030.Efforts to establish the ASEAN Coordinating Centre for Transboundary Haze Pollution Control(ACC THPC)should be prioritised.The SIIA aims to release a follow-up report that will analyse economic shifts and policy directions that may impact land management and haze prevention in the coming years.10AnnexesAnnex1:LiteratureReviewBuilding on our previous Haze Outlook reports,we reviewed 105 relevant recent studies related to the haze and peatland fires for 20242025.On the general topic of fire and land management in Indonesia,we identified 22 per cent on the social,political,and economic aspects of peatland fires,17 per cent on technical land management matters,and 11 per cent on fire management.The remainder covered other issues such as health and climate effects.Research on the socio-economic impacts of peatland fires and haze remains a major field for 20242025.Mendham et al.(2024)found that government programs in one village,Tumbang Nusa,in Central Kalimantan,had limited impact only 17 per cent of demonstration plots,16 per cent of capacity-building initiatives,and 11 per cent of livelihood programs remained active and adopted.Other significant studies about villages in peatland areas include Jalilov et al.(2024),Ekawati et al.(2024),and Puspitaloka et al.(2024).Yunus et al.(2024)estimated the total economic value of peatlands in Indonesias Riau province at USD 3,174 per household per yearabout 1.3 times the annual household income.Ilham et al.(2024)conducted a value-chain analysis in Riau,identifying commodities that could be an alternative to oil palm cultivation:pineapple,areca nut,fish,and honey.Studies on peatland management included research on rewetting and revegetation of peat areas(Elfis et al.,2024).Hooijer et al.(2024)reported positive effects on water levels and native tree species spontaneously growing on a site.In another study in Riaus Siak district,groundwater levels five meters away from canal blocks were significantly higher than in areas without them.Alhamd et al.(2024)and Wahyono et al.(2024).Widyastuti et al.(2025)found that repeatedly burned peatland had 10 per cent lower water-holding capacity than secondary forests.We reviewed 11 papers on greenhouse gas(GHG)emissions from fires and land degradation.Hu et al.(2024)conducted controlled field research in Sumatran peatlands,showing that emission factors(amount of pollutants released per unit burned)varied significantly across fire stages and weather conditions,demonstrating the complexity of measuring emissions.Cahyaningtyas et al.(2024)found that post-fire carbon storage was influenced more by fire severity and recency than by fire frequency.There were several impact studies on fine particulate matter,especially PM 2.5.(Grosvenor et al.,2024;Siregar et al.,2024;Madrigano et al.,2024,United States Environmental Protection Agency(EPA),2025).Graham et al.(2024)found indoor air quality during the 2023 fire and haze season in Central Kalimantan to be as poor as outdoor air,estimating that fires resulted in 93112 g/m PM2.5 concentrations,far exceeding WHO(15 g/m)and Indonesian(65 g/m)safe limits.On forest management policy,Chervier et al.(2024)found that there were mixed effects of Indonesias move to decentralise management to Forest Management Units(Kesatuan Pengelolaan Hutan,KPH)from 2001 to 2020 due to lack of resources in many areas.KPHs had a positive impact on fire-related forest loss,and the study found that earlier-established units also had better results.The authors note that KPHs have played a diminished role following newer programmes introduced by the Jokowi administration.11Key NGOs,campaigns,and media continue to scrutinise businesses for links to deforestation.Mighty Earth(2025)has reported on land clearing in Merauke,Papua,for rice cultivation.The Gecko Project(2024),in collaboration with Bloomberg News,has reported on businesses allegedly clearing forests in West Borneo.Jong(2025)in Mongabay reported on Auriga Nusantaras deforestation estimates.Bulolo(2024)in EcoBusiness has commented on the implications of the Prabowo administrations biofuel mandates.Mongabay recently reported on a spate of controversies,notably a group of South Sumatran residents suing pulpwood companies for recurring haze pollution,citing violations of their right to a healthy environment(Jong,2025).Other governance issues include indigenous concerns over government-backed projects in Merauke and other legal cases.12Annex2:CaseStudyonPeatlandandMangroveRestorationAlthough peatlands and mangroves occupy only 5.4 per cent of Southeast Asias land area,restoring and protecting these carbon-dense ecosystems can contribute substantially to climate change mitigation,while maintaining valuable ecosystem services,livelihoods and biodiversity.This is according to a recent study in Nature Communications by Sasmito et al.,2025 titled Half of land use carbon emissions in Southeast Asia can be mitigated through peat swamp forest and mangrove conservation and restoration.The authors of the study are international specialists from Australia,Indonesia,Singapore,the United Kingdom,and the United States.Notably,the authorship includes experts affiliated with Indonesian government bodies,namely the National Research and Innovation Agency(BRIN)and the Ministry of Forestry.The study showed that peatland and mangrove restoration is especially important in Indonesia,which accounts for roughly 72 per cent of the regions annual emissions from tree cover loss,fires,and land-use change on peatlands and mangroves.Indonesia has set a target of achieving a net carbon sink for its forestry and other land use(FOLU)sector by 2030.The study estimates that Indonesia has the potential to meet its FOLU emission reduction target of 500 Tg COe without external support by conserving peatland and mangroves.Carbon sequestration from peatland regrowth remained largely flat across all of the Southeast Asia region for the period 2017-2022,for unclear reasons,while mangrove regrowth continued to improve.Beyond 2022,it is expected that 66 per cent of the regions emissions reduction from ecosystem restoration will come from the rewetting of peatlands,with 33 per cent coming from revegetation of peat areas.FigureA1:CarbonremovalandemissionsreductionpotentialfrompeatandmangroveregrowthMangrove regrowthPSF regrowth2001030Carbonremovals(TgCO2e)20002005201020152020YearSource:Sasmito et al.(2025)Mangrove revegetationPeatland revegetationPeatland rewettingTree PlantationSmallholderOil PalmIndustrialOil PalmDrainage CanalDegraded PSFDeforested PSFAquaculture Pond01020305040Bare LandLandusetypesEmissionsreductionpotentials(TgCO2e/yr)13Annex3:EUDRandDigitalTraceabilityThe European Unions Regulation on Deforestation-free products(EUDR)was originally scheduled to take effect at the end of 2024.But its phasing-in period was delayed to give businesses and governments more time to comply.Currently,large and medium-sized companies have until 30 December 2025 to comply with the regulation,while micro and small enterprises have until 30 June 2026.The EUDR covers seven product categories palm oil,soy,wood,cocoa,coffee,cattle,and natural rubber.ASEAN economies are major exporters of most of these commodities,except for soy and cattle.Under the regulation,goods imported into the EU will need to prove they are not connected to any recent deforestation,defined as deforestation that occurred after 31 December 2020.Companies that fail to comply will be subject to checks and potentially fines or bans from the EU market.The regulation aims to ensure that a set of products traded and consumed in the EU does not contribute to deforestation anywhere in the world.There has been some controversy over the EUDR,with critics both within and outside the EU contending that the due diligence and data requirements of the EUDR are too stringent,particularly for smallholder farmers.Critics say that small farmers who cannot meet the reporting requirements will effectively be barred from exporting to the EU,or being part of supply chains that go to the EU.Talks between the EU and its trading partners on EUDR implementation have been underway since 2023,including a trilateral Ad Hoc Joint Task Force(JTF)involving the European Commission,Indonesia,and Malaysia.These have made progress.The European Commission recently announced changes to simplify the administration of the EUDR,including softened requirements for due diligence reporting.The changes are intended to“reduce the administrative burden”of implementing the EUDR(European Commission,2025).The changes include:Large companies can reuse existing due diligence statements when goods previously on the EU market are reimported.This means that less information needs to be submitted in the IT system.Companies will be allowed to submit due diligence statements annually instead of for every shipment or batch placed on the EU market.Downstream companies have simplified obligations.A minimal legal obligation of collecting reference numbers of Due Diligence Statement(DDS)from their suppliers and using those references for their own DDS submissions now applies.In principle,the changes will ease the administrative burden of EUDR compliance for large companies.The European Commission estimates the new measures will reduce administrative costs by 30 per cent.However,the above changes do not address the issue of smallholder participation in export supply chains.This has essentially been left up to origin countries to organise.Countries like Indonesia and Malaysia have embarked on large-scale digitalisation efforts to provide traceability from farm to destination,including smallholder farmers.These digital platforms are also intended to allow international buyers and trader-processors to file their EUDR due diligence submissions while still respecting Indonesian and Malaysian laws on data protection,letting companies go through the national dashboards.However,it remains to be seen whether the Indonesian and Malaysian systems will be embraced by buyers and EU officials.Ideally these platforms will be fully operational and deemed as completely meeting the EUDRs requirements.14References Alhamd,L.,Sundari,S.,Brearley,F.Q.,&Rahajoe,J.S.(2024,August 26).Effects of fire on tree species composition and carbon stocks of a peat swamp forest in central Kalimantan,Indonesia.Taylor&Francis.https:/ ASMC.(2025,June 4).Regional Climate-Seasonal Outlook.https:/asmc.asean.org/asmc-seasonal-outlook/Australian Bureau of Meteorology.(2025,June 12).Southern Hemisphere Monitoring Pacific,Indian and Southern Ocean regions.Australian Government Bureau of Meteorology.http:/www.bom.gov.au/climate/enso/?ninoIndex=nino3.4&index=nino34&period=weekly BMKG.(n.d.).Prediksi Musim Kemarau Tahun 2025 di Indonesia-Prediksi Musim.https:/www.bmkg.go.id/iklim/prediksi-musim/prediksi-musim-kemarau-tahun-2025-di-indonesia Bulolo,C.(2024,November 4).Will Indonesias biodiesel push put its climate goals at risk?Eco-Business.https:/www.eco- of peatland fires on above-ground carbon stocks in Kepulauan Meranti Regency,Riau Province.Journal of Tropical Forest Management.https:/journal.ipb.ac.id/index.php/jmht/article/view/50189 Chervier,C.,Atmadja,S.S.,Nofyanza,S.,Annisa,C.N.,Nurfatriani,F.,Kristiningrum,R.,Sahide,M.A.K.,Suhardiman,A.,&Umar,S.(2024,October 16).Impact of Indonesias forest management units on the reduction of forest loss and forest fires in Sulawesi.Science Direct.http:/ Climate Prediction Center/NCEP.(2025).Enso:Recent evolution,current status and predictions.https:/www.cpc.ncep.noaa.gov/products/analysis_monitoring/lanina/enso_evolution-status-fcsts-web.pdf Climate.gov.(2016,January 18).El Nio and La Nia:Frequently asked questions.NOAA Climate.gov.https:/www.climate.gov/news-features/understanding-climate/el-nio-and-la-nia-frequently-asked-questions Ekawati,S.,Siburian,R.,Yanarita,Surati,Nurlia,A.,&Sundary,L.V.(2024).Peatland Forest Fire Mitigation Policies:Impact on Traditional Farmers Food Security and Environmental Improvement.IOP Science.https:/iopscience.iop.org/article/10.1088/1755-1315/1323/1/012014/meta Elfis,W,T.P.,Chahyana,Permatasari,&Norlis.(2024).Towards paludicultural agroforestry:Land use practice based on Malay local wisdom to support peatland rehabilitation in Riau Province,Indonesia.Mires and Peat.http:/mires-and- European Commission.(2025,April 15).Commission takes action to simplify the implementation of the EU deforestation regulation.European Commission-European Commission.https:/ec.europa.eu/commission/presscorner/detail/en/ip_25_1063 The Gecko Project.(2024).Insider testimony points to“sustainable”conglomerate as hidden hand behind destruction of Rainforest.https:/thegeckoproject.org/articles/insider-testimony-points-to-sustainable-conglomerate-as-hidden-hand-behind-destruction-of-rainforest/Global Forest Watch.(2025).Brazil deforestation rates&statistics:GFW.Forest Monitoring,Land Use&Deforestation Trends.https:/www.globalforestwatch.org/dashboards/country/BRA/?category=forest-change Goldman,E.,Carter,S.,&Sims,M.(2025,May 21).Fires drove record-breaking tropical forest loss in 2024.World Resources Institute Research.https:/gfr.wri.org/latest-analysis-deforestation-trends?apcid=0065c4e47236be6ce5b0580115 Graham,A.M.,Spracklen,D.V.,McQuaid,J.B.,Smith,T.E.L.,Nurrahmawati,H.,Ayona,D.,Mulawarman,H.,Adam,C.,Papargyropoulou,E.,Rigby,R.,Padfield,R.,&Choiruzzad,S.(2024,November 3).Updated smoke exposure estimate for Indonesian peatland fires using a network of low-cost PM2.5 sensors and a regional air quality model-graham-2024-geohealth-wiley online library.Advancing Earth and Space Sciences.https:/ 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Mobility and Transport Connectivity SeriesWinds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen EconomySynthesis Report 2025 The World Bank 1818 H Street NW,Washington DC 20433 Telephone:202-473-1000;Internet:www.worldbank.org Some rights reservedThis work is a product of The World Bank.The findings,interpretations,and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent.The World Bank does not guarantee the accuracy,completeness,or currency of the data included in this work and does not assume responsibility for any errors,omissions,or discrepancies in the information,or liability with respect to the use of or failure to use the information,methods,processes,or conclusions set forth.The boundaries,colors,denominations,links/footnotes and other information shown in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory 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NW,Washington,DC 20433,USA;fax:202-522-2625;e-mail:pubrightsworldbank.org.This document is version v1.1 from 31 July,2025,which includes minor transcription errors corrected and some images were replaced.ivWinds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen EconomyTable of contentsList of Figures vList of Tables viAcknowledgments viiAcronyms viiiExecutive Summary x1.Context 11.1.Maritime transport to decarbonize through green hydrogen-based fuels 21.2.Trading green hydrogen and derivatives by sea 31.3.Ports as enablers of the green hydrogen economy 42.Pre-Feasibility Assessment 62.1.Stage 1:High-level assessment of major port locations 82.2.Stage 2:Pre-feasibility studies of four port locations with highest potential 113.Project Setups 253.1.Technical analysis 273.2.Financial and economic analysis 304.Lighthouse Roadmap 384.1.Challenges and gaps 404.2.Recommended actions 425.Conclusion 48Annex 1.Main stakeholders involved 51Annex 2.Stage 1 high-level assessment evaluation framework 52Annex 3.Detailed design options of 18 project setups 53Annex 4.Details of the lighthouse roadmap 55References 57Image Credits 59Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen EconomyvList of FiguresFigure E1.Overview of the two-stage approach under the completed analysis.xiFigure 1.1.Predictions for low-cost production centers and high-demand consumption centers of future green hydrogen.3Figure 1.2.The triple role of ports in the green hydrogen value chain.4Figure 2.1.Overview of two-stage approach of current analysis completed.7Figure 2.2.Overview of the nine major port locations considered in Colombia.8Figure 2.3.Geographic locations of the four specific ports selected.10Figure 2.4.Puerto Brisa.12Figure 2.5.Puerto Bolvar,La Guajira.13Figure 2.6.Puerto de Barranquilla.14Figure 2.7.Cartagenas Puerto Baha.15Figure 2.8.Comparison of the market potential for green hydrogen-based fuels“made in Colombia”by demand type.19Figure 2.9.General value chain for a green ammonia project setup at the port locations.21Figure 2.10.General value chain for a green methanol project setup at the port locations.23Figure 3.1.Left-Map of solar photovoltaic power generation potential,kWh/kWp per day;Right-Map of wind speeds at a height of 100 meters within a 100-km radius.27Figure 3.2.Comparison of the market prices for green ammonia,green methanol,gray ammonia,and gray methanol.31Figure 3.3.Overview of CAPEX and OPEX for the two priority projects in Cartagena.33Figure 3.4.Overview of CAPEX and OPEX for the two priority projects in Barranquilla.33Figure 4.1.Six-axes framework of the lighthouse roadmap.39Figure 4.2.Time frame for recommended actions under the lighthouse roadmap.40Figure 4.3.Potential structure for governance mechanism.43Figure 5.1.Jigsaw puzzle metaphor of the green hydrogen economy with missing maritime and non-maritime pieces.49Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen EconomyviList of TablesTable 2.1.Criteria,sub-criteria,and weights applied in the multicriteria analysis under Stage 1.9Table 2.2.Final results of the high-level assessment under Stage 1.11Table 2.3.Key characteristics of each port shortlisted under Stage 2.12Table 2.4.Green hydrogen-based shipping fuel demand in shortlisted ports in Colombia.16Table 2.5.Local industry demand in shortlisted port areas in Colombia.17Table 2.6.Hydrogen import demand in major countries and region .18Table 3.1.Optimized technical parameters of the 7 priority project setups.27Table 3.2.Levelized costs,CAPEX and OPEX of each priority project setup.30Table 3.3.Comparison of the main results of the financial analysis in the base case scenario.34Table 3.4.Key parameters for Scenarios for sensitivity analysis of financial viability.35Table 4.1.Main challenges or gaps identified for further project development.40Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen EconomyviiAcknowledgmentsThis synthesis report summarizes the key findings and key conclusions of three analytical deliverablesa Stage 1 Report,a Stage 2 Report,and a Lighthouse Roadmap.The preparation of this synthesis report was led by the National Department of Planning of Colombia and the World Bank,with the expert support of Hinicio,Cenit,and the University of the Andes.The team of the National Department of Planning responsible for this synthesis report was led by Nicols Rincn Munar,and included,Sandra Milena Tllez Gutirrez,Khadir Rashid Kairuz Diaz,Rosario Gonzlez Celis,Nstor Ros Ramrez,and Rafael Arias Cano.The World Bank team was led by Dominik Englert,and included Yoomin Lee,Adil Fazzaga El Habti,Simona Sulikova,Fernando Hoyos(all World Bank),and Maria Lopez Conde(International Finance Corporation).The Hinicio team was led by Pilar Henrquez,and included Juan Pablo Ziga,Luis Parra,Leonardo Prez,Carlos Fernndez,and Felipe Bonilla.The Cenit team was led by Sergi Saur Marchn,and included Francesc Gasparn Casajust and Matteo Boschian Cuch.The University of the Andes team was led by Gordon Wilmsmeier,and included Ricardo Sanchez,Nicanor Quijano,Guillermo Jimenez,Diana Lisseth Trujillo Rodrguez.The World Bank team is very grateful to the peer reviewers David Vilar,Rohan Shah,Silvia Carolina Lopez Rocha(all World Bank),and David Blazquez(International Finance Corporation)for their valuable feedback.For their strategic guidance and support along the development of this synthesis report,the teams extend thanks to Natalia Irene Molina Posso,Mario Alejandro Valencia Barrera (all National Department of Planning),Nicolas Peltier,Peter Siegenthaler,Binyam Reja,Bianca Bianchi Alves,Manuel Luengo,Leonardo Canon Rubiano,and Ellin Ivarsson(all World Bank).Funding for this report was kindly provided by PROBLUE,an umbrella multi-donor trust fund,administered by the World Bank,that supports the sustainable and integrated development of marine and coastal resources in healthy oceans,as well as the Public-Private Infrastructure Advisory Facility,that helps developing-country governments strengthen policies,regulations,and institutions enabling sustainable infrastructure with private-sector participation.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen EconomyviiiAcronymsCAPEXCapital ExpenditureCO2Carbon dioxideCONPESConsejo Nacional de Poltica Econmica y SocialCORFOCorporacin de Fomento de la ProduccinDIMARLa Direccin General MartimaDNPDepartamento Nacional de PlaneacineqequivalentESMAPEnergy Sector Management Assistance ProgramEUEuropean UnionGHGGreenhouse GasGWGigaWattH2Hydrogen H2OWaterIEAInternational Energy AgencyIMOInternational Maritime OrganizationIRRInternal Rate of Return ktkilotonskWkiloWattLCOALevelized Cost of AmmoniaLCOHLevelized Cost of HydrogenLCOMLevelized Cost of MethanolLFLoad Factorm3meters cubedWinds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen EconomyixMeOHMethanolMWMegaWattN2NitrogenNH3AmmoniaNPVNet Present Value OPEXOperational Expenditure POFPAPlan de Ordenamiento Fsico Portuario y AmbientalPPPPublic-Private Partnership ttonsUS$United States DollarWACCWeighted Average Cost of CapitalWinds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen EconomyxExecutive SummaryBackgroundThe World Bank tackles the decarbonization of international maritime transport from two intertwined angles.On a global level,it supports the International Maritime Organization(IMO)policymaking process through targeted analytics and advisory.On a country level,the World Bank assists its member countries in identifying business and development opportunities.Colombia has been identified as one of the countries with the highest potential to become a future supplier of green hydrogen-based shipping fuels to the global fleet of vessels.As part of this engagement with the Government of Colombia,the World Bank supported the development of pre-feasibility studies in four port locations:Cartagena,Barranquilla,Puerto Brisa,and Puerto Bolvar.The objective was to understand the opportunities,challenges,and requirements of developing green shipping fuel1 value chains in Colombia.By making the findings available to public and private stakeholders alike,the studies serve as one of many building blocks for seizing this unique growth opportunity for Colombia.From December 2023 to November 2024,two in-person stakeholder workshops with more than 100 Colombian and international experts,various roundtables,and technical interactions at green hydrogen-related events,significantly benefited this work.A list of the main stakeholders involved can be found in Annex 1.This report presents the key findings and conclusions of the World Bank engagement,showcasing Colombias opportunity to become an important global supplier of green hydrogen-based fuels for shipping and other sectors.This analysis evaluated Colombias emerging green hydrogen economy from a maritime transport perspective.With shipping and ports at the center,the analysis explored the potential for producing,storing,supplying,and exporting green hydrogen-based fuels in the ports of Colombia,thereby highlighting its efforts at sustainability.Figure E1 illustrates a two-stage approach that aims to answer three key questions:i.Which Colombian port locations are best suited to become part of future value chains for green hydrogen-based fuels?ii.What would the technical and financial feasibility of potential lighthouse investment projects at these port locations look like?iii.What actions should the public and/or private sector take to develop these potential lighthouse investment projects?1 A green shipping fuel refers to shipping fuels that achieve minimal to no net greenhouse gas emissions(GHG)particularly carbon dioxide(CO2)across their entire lifecycle,from production to combustion.This definition includes both the direct GHG emissions from fuel combustion as well as the indirect emissions from its production,processing,and distribution.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen EconomyxiFigure E1.Overview of the two-stage approach under the completed analysisStage 1:High-level assessment of major port locationsStage 2:Pre-feasibility studies of four port locations with highest potentialSuggested:Discussion of potential projects to be pursued and possible next stepsLighthouse investment projects9 longlisted port locationsPacific and Caribbean coasts4 shortlisted port locationsPuerto Brisa,Puerto Bolvar,Barranquilla,and Cartagena18 project setups screened forlowest cost7 priority project setups analyzed in detail Lighthouse roadmapSource:World Bank.The main findings and conclusions can be summarized in five key messages:1.The decarbonization of maritime transport will depend on green hydrogen-based fuels,and the global green hydrogen economy will depend on maritime transport.As international shipping decarbonizes in accordance with the climate commitments made by the International Maritime Organization,ships will use a new generation of fuelsthe so-called zero-carbon bunker2 fuels.These new fuels will likely be biofuels or green hydrogen-based(H2)fuels produced by wind and solar power,namely green ammonia(NH3)and green methanol(MeOH).Green hydrogen-based fuels are much more scalable.Other varied global industries such as chemicals,fertilizers,iron and steel,aviation and trucking will also need green hydrogen and its derivatives to decarbonize.In this scenario,ships and ports will be key.They will be needed to link low-cost production centers with abundant renewable energy resources(e.g.,in Latin America)and energy-constrained high-demand consumption centers(e.g.,in Europe or East Asia),to enable the global trade of green hydrogen-based fuels.2 Bunkering is the technical term for supplying(any type of)fuel to be used by ships.This fuel is often called bunker fuel.The term bunkering still comes from the days of steamships whose coal was stored in bunkers.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economyxii2.Based on a two-stage analysis,seven key investment opportunities for lighthouse green H2 projects were identified along the Caribbean Coast of Colombia.Four port locations were shortlisted for further analysis after a high-level assessment of all major port locations across the country.This was based on evaluation criteria like energy resources,infrastructure,safety,environmental and social considerations,among others.The shortlisted ports were:Puerto Bolvar,Puerto Brisa(both in La Guajira),Port of Barranquilla(Atlntico),and Cartagena(Bolvar,to be precise,Puerto Baha which is located next to Cartagena).Across these high-potential port locations,18 project setups were designed.This was further whittled down to seven priority project setupstargeting a start of commercial operation in 2032.Detailed pre-feasibility studies for the production,storage,supply and export of green ammonia(NH3)and green methanol(MeOH)were conducted for Cartagena,Barranquilla,Puerto Brisa,and Puerto Bolvar(with only green ammonia being assessed in the two latter ports).The relatively small number of green methanol priority project setups compared to its ammonia counterpart is explained by the crucial need for reliable and sustainable biomass supply for methanol projects.3.The largest business opportunities for commercializing green hydrogen-based fuels from these potential projects are primarily in exports,followed by bunkering demand.The demand analysis revealed that the export market will likely account for the largest market potential to sell green hydrogen-based fuels“made in Colombia”.This demand of up to 12,000 kilotons(kt)of H2 equivalent(eq)in 2030 and 59,000 kt H2eq in 2050,relates primarily to exports to the European Union,Japan and South Korea,as well as Panama,which plans to establish itself as a green fuel distribution hub.At a much smaller scale,demand from international ships calling at these four port locations,comes in at second place.They could account for 30.7 kt H2eq in 2030 and 675 kt H2eq in 2050.Lastly,local industry situated at these locations may demand green hydrogen and its derivatives in the order of 7.0 kt H2eq in 2030 and 188.4 kt H2eq in 2050.4.The financial viability of the priority projects remains highly dependent on the future market prices for green hydrogen-based fuels,which,in turn,are determined by international policy decisions.Assuming a yearly output of approximately 50 kt H2eq,the seven priority projects were estimated at CAPEX ranging from US$1.6 billion(Puerto Bolvar NH3)to US$2.7 billion(Cartagena NH3).In the base scenario,almost all priority projects were deemed to be financially viablewith an estimated internal rate of return between 14 percent and 24 percent.This base scenario assumed average green premium fuel prices.These are prices that future(European)off-takers are likely willing to pay on average for green ammonia or green hydrogen.However,the sensitivity analysis also revealed that with lower green premium prices,or even market prices for the products gray competitors,all projects would become financially unviable and would initially need public support.Ultimately,future prices for green hydrogen-based fuels will heavily depend on climate policy decisions made by the European Union,Japan,South Korea,and the International Maritime Organization.While it may be more difficult with national or regional policies,the Government of Colombia can strategically influence international policy at the IMO.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economyxiii5.Following recommendations from the lighthouse roadmap,the public and private sectors alike can maximize the contribution of Colombian ports to form a national green hydrogen economy.The analysis developed a strategic lighthouse roadmap based on six axes of action:(1)Governance,(2)Regulation,(3)Value Chain,(4)Market,(5)Social and Environmental,(6)Financial and Economic.The lighthouse roadmap puts special emphasis on the creation of an enabling environment for developing green hydrogen-based value chains in Colombia,providing implementable recommendations to both the public and private sector to address key challenges and gaps.For instance,the creation of a new governance mechanism for green hydrogen value chains in Colombia,the introduction of new a regulatory environment,and the strategic management of social and environmental issues(especially regarding local indigenous communities).Other recommendations included exploring financing options such as the establishment of a public investment fund(in line with the Chilean CORFO3 model),collaboration with the 10 GW Clean Hydrogen Initiative,or working with the World Banks new Fondo de Transicin Energtica.3 CORFO(Corporacin de Fomento de la Produccin)is Chiles economic development agency.Together with the World Bank and other development finance institutions,CORFO established a blended finance fund for Chilean green hydrogen projects in 2023.Context01 Maritime transport and the green hydrogen economy depend on each other.Ships are likely to become major consumers of green hydrogen-based fuels such as green ammonia or green methanol as maritime transport reduces its greenhouse gas emissions.Likewise,shipping and ports will be indispensable in linking low-cost production centers and high-demand consumption centers for green hydrogen and its derivatives around the world.As facilitators of the green hydrogen economy,ports will be expected to supply green hydrogen-based fuels to ships,provide these fuels to local industry,and help export them to international markets.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy21.1.Maritime transport to decarbonize through green hydrogen-based fuelsMaritime transport is crucial for global trade and the economic growth of countries.For instance,Colombia,with its extensive coastline of over 3,200 km along the Caribbean and Pacific,holds substantial economic promise due to its strategic geographic maritime position,facilitating access to major markets in Asia,North America,and Europe.The Caribbean ports alone handle around 95 percent of the countrys exports(over 90 million tons)and 64-70 percent of the imports(DIAN,2020;Supertransporte,2023).While being a key enabler for the global economy,international maritime transport also contributes significantly to climate change.Greenhouse gas(GHG)emissions from ships account for about 2.9 percent of global GHG emissions,or approximately 1.1 billion tons carbon dioxide equivalent(tCO2eq)per year(IMO,2020).If shipping was a country,it would be among the top 10 GHG emitters,worldwide.In 2023,the International Maritime Organization(IMO)set ambitious decarbonization targets for international shipping.These include,for instance,the goal to fully decarbonize international vessels by or around 2050,and to ensure that zero or near-zero GHG emission technologies,fuels,and/or energy sources represent at least 5-10 percent international shippings energy mix by 2030.Decarbonizing shipping will require a massive energy transition away from fossil fuelspredominantly oil with a little bit of natural gas to green shipping fuels.Next to biofuels,these future green shipping fuels refer,amongst others,to green hydrogen-based(H2)fuels.They include green ammonia(NH3)and green methanol(MeOH),which are derived from green hydrogen4.If all green fuels required by shipping in 2030 were based on hydrogen,this would imply a need for an estimated 5 to 10 million tons of green hydrogen(IMO,2023 and World Bank calculations).For comparison,todays global demand for(almost exclusively gray5)hydrogen is estimated at around 100 million tons per year(IEA,2024).With stringent policies in place,green hydrogen-based fuels are deemed most promising to decarbonize the shipping industry at scale.They are likely to be preferred over biofuels,which often raise sustainability concerns and face cross-sectoral demand from other sectors such as aviation.In deep-sea shipping,they are also likely to be used over electrification,as electrification has its technical limits due to the high requirementsboth in terms of power levels and storage spaceby ocean-going vessels(World Bank,2021).With the IMOs goal of achieving full decarbonization,international shipping could create a significant and stable demand for green hydrogen-based fuels worldwide.Alongside shipping,other economic sectors will be in need of green hydrogen-based fuels to decarbonize.So far,(gray)hydrogen has been used mainly in refineries and chemicals,specifically in fertilizer production.In a decarbonizing global economy,fertilizer production based on green ammonia will take on increased importance.In addition,large-scale demand for green hydrogen is likely to come from heavy industries(to replace coke with green hydrogen)and from transport sectors like aviation(to replace fossil kerosene with synthetic kerosene)or possibly even trucking(to replace diesel with green hydrogen).4 Green hydrogen is hydrogen produced by the electrolysis of water,using renewable electricity or biomass.In other contexts,it may also be called renewable hydrogen.5 In this context,gray hydrogen is considered as hydrogen produced by fossil fuels,in most cases natural gas.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy31.2.Trading green hydrogen and derivatives by seaMany developing countries,including Colombia,are touted to be able to produce green hydrogen at the most competitive cost worldwide.In general,renewable electricity generation accounts for the lions share,i.e.,around 80 percent of total investment needs for green hydrogen production(ESMAP et al.,2023),followed by electrolyzers.Consequently,developing countries with abundant renewable energy resources,particularly wind and solar,are estimated to have the lowest levelized cost of green hydrogen(IEA,2023).Future low-cost production centers of green hydrogen are likely to be found in Latin America,Northern and Southern Africa,the Middle East,and Oceania.Parts of Colombia are among the worlds top locations for low-cost green hydrogen production.Economically,it will be very beneficial to link these countries that are able to produce green hydrogen at low cost with those willing to offer higher prices.In contrast to the low-cost production centers in many developing countries,high-demand consumption centers of green hydrogen-based fuels are expected to emerge in Europe(mostly Central Europe and Eastern Europe)and East Asia(mostly Japan and South Korea)(IRENA,2022).For optimal mutual benefit,it will make sense to connect these low-cost production centers with the high-demand consumption centers in a cost-effective manner,thereby facilitating the export,import,and trade of green hydrogen-based fuels around the world.As illustrated in Figure 1.1,in most cases,this global trade will happen by sea.Figure 1.1.Predictions for low-cost production centers and high-demand consumption centers of future green hydrogenExporting regionNew routes in place or underdevelopmentMemorandumsof Understandingin place establishingtrade routesImporting regionExporterImporterPotential trade routeexplicitly mentioned inpublished strategiesSource:IRENA(2022).MoU stands for memorandum of understanding.Thus,ships will play an important role not only as consumers of green hydrogen-based fuels,but also as their global distributors,thereby contributing to the wider decarbonization of the global economy.Where pipelines may be technically impossible or financially unviable,maritime transport through shipping and ports will serve as the only realistic solution to facilitate the global trade of green hydrogen-based fuels.This positions ships as essential distributors and ports as pivotal import and export hubs for green hydrogen,its derivatives,and its technical components.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy41.3.Ports as enablers of the green hydrogen economyPorts will play a crucial enabling role in most countries,leading to the emergence of green hydrogen economies.They are expected to fulfill key functions in building green hydrogen value chains locally,nationally,and internationally in a cost-effective manner.In many cases,ports will be the only means of enabling the large-scale supply of and demand for green hydrogen and its derivatives.On the green hydrogen demand side,ports are expected to play a triple role,catering to shipping,local industry,and export demand.Figure 1.2 illustrates this point.First,ports will continue assuming their traditional role as bunkering hubs for maritime transport by providing shipping fuels to vessels.While this fuel has been mostly oil for many decades,shippings decarbonization commitments will soon require more and more vessels to refuel with green hydrogen-based fuels like green ammonia or green methanol.Second,ports are often strategically located in or next to major industrial zones.In many cases,these zones host important industrial activities such as chemicals,fertilizers,iron and steel,aviation,or trucking.These will be in need of the same green hydrogen-based fuels,too,in order to comply with their own climate commitments.Here,ports can serve as strategic aggregators of local demand.Third,and likely most important,ports will be vital to facilitate the sea-borne export of green hydrogen and its derivatives to foreign markets at a large scale.Figure 1.2.The triple role of ports in the green hydrogen value chainIndustrialHubsSupplyof Marine FuelEnergy ExportHubsSource:World Bank.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy5On the hydrogen supply side,ports are often the only viable transport gateways through which large-scale technical components can be imported.In terms of building a green hydrogen value chain,this is particularly true for technical energy components like wind blades,wind turbines,solar panels,or electrolyzers.In many cases,these components need to be manufactured abroad and imported by sea.They then often need to be transported to remote locations along the coast.These locations have excellent renewable energy conditions,but suffer from inadequate land-based transport infrastructure.Colombia has the potential to become a key player in the international hydrogen market.According to the Inter-American Development Bank(Gischler,et al.,2023),by 2030,Colombias average levelized cost of hydrogen(LCOH)is expected to be around US$3 per kg H2.This is lower than that of Costa Rica,Panama,South Africa and Trinidad and Tobago(US$3-6 per kg H2).It is,however,higher than average LCOH levels in Argentina,Brazil,Chile,Namibia and Uruguay(US$1.5-3 per kg H2).These national averages mask regional variations.The International Energy Agency(IEA,2024)highlights that Colombias Caribbean coast,particularly its northernmost areas,are likely to achieve LCOH levels comparable to the best areas in Southern Argentina and Chile,and even slightly better than the Arab Gulf countries.Other non-Caribbean regions of Colombia maintain acceptable LCOH levels,with the Pacific coast appearing less competitive when the renewable energy focus is set solar and wind power,and not on bioenergy.From a policy perspective,the Government of Colombia has already made significant strides in developing its national green hydrogen economy.Recognizing its abundant renewable energy potential,its favorable geographic location,and its existing and planned energy and transport infrastructure,the Government of Colombia has developed key public policies and strategies from a maritime perspective.These include,amongst others,the Green Hydrogen Roadmap(Ministerio de Minas y Energa,2022),the Offshore Wind Roadmap,or Consejo Nacional de Poltica Econmica y Social(CONPES)4118 of 2023 on sustainable development in ports.These initiatives have started building a robust framework for action,fostering a conducive investment climate as well as the development of sustainable infrastructure projects.Pre-Feasibility Assessment02 The analysis was divided into two stages.Stage 1 involved a high-level assessment of nine major port locations in Colombia.Stage 2 zoomed in on four selected ports(Cartagena,Barranquilla,Puerto Brisa,and Puerto Bolvar)deemed to have the highest potential for producing,storing,supplying,and exporting green hydrogen-based fuels.The demand analysis in Colombia concluded that by far,the largest market potential can be expected in exporting green hydrogen or its derivatives to markets such as the European Union,Japan,or South Korea.This potential is likely followed by bunkering demand from ships,and eventually,local industry.The analysis focused on developing value chains for green ammonia and/or green methanol with a production capacity of approximately 50,000 tons per year of green hydrogen at each shortlisted port location.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy7The Government of Colombia6 and the World Bank joined forces to explore the role of Colombias port sector in the countrys emerging hydrogen economy.The aim was to identify and pre-assess the feasibility of lighthouse investment projects to produce,store,supply,and export green hydrogen-based fuels,such as green ammonia or methanol,in Colombian ports.With that goal in mind,the joint analysis was divided into two subsequent stages.Stage 1 gauged nine major port locations in Colombia through a high-level assessment.Stage 2 zoomed in on four port locations(Cartagena,Barranquilla,Puerto Brisa,and Puerto Bolvar),with the highest potential to produce,store,supply,and export green hydrogen-based fuels in the future,from the early 2030s.Figure 2.1 shows the two-stage structure of the analysis.Figure 2.1.Overview of two-stage approach of current analysis completedStage 1:High-level assessment of major port locationsStage 2:Pre-feasibility studies of four port locations with highest potentialSuggested:Discussion of potential projects to be pursued and possible next stepsLighthouse investment projects9 longlisted port locationsPacific and Caribbean coasts4 shortlisted port locationsPuerto Brisa,Puerto Bolvar,Barranquilla,and Cartagena18 project setups screened forlowest cost7 priority project setups analyzed in detail Lighthouse roadmapSource:World Bank.6 The collaboration happened mainly with the National Planning Department,which coordinated closely with the Ministry of Transport,the National Agency for Infrastructure(ANI),the General Maritime Directorate(DIMAR),the Ministry of Mines and Energy,and other relevant governmental entities.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy82.1.Stage 1:High-level assessment of major port locationsDuring Stage 1,the analysis covered all major port locations in Colombia,assessing their potential to produce,store,supply,and export green hydrogen-based fuels in the future.This high-level assessment looked at Tumaco and Buenaventura on the Pacific Coast,as well as Antioquia,7 Morrosquillo,Cartagena,Barranquilla,Santa Marta,Puerto Brisa,and Puerto Bolvar on the Caribbean Coast.Figure 2.2 provides a geographic overview of the nine Colombian port locations considered.Figure 2.2.Overview of the nine major port locations considered in ColombiaLista de puertosTumacoBuenaventuraPuerto Antioquia(2025)Golfo de MorrosquilloCartagenaBarranquillaSanta MartaPuerto BrisaPuerto Bolvar 123456789123456789Source:World Bank.Based on a multicriteria analysis,8 this high-level assessment estimated each port locations individual short-to medium-term potential for green hydrogen-based fuels.As indicated in Table 2.1,seven key criteria with individual sub-criteria were defined through consultations(including a workshop in Bogot)with key stakeholders.The key criterion“C2:Energy potential and infrastructure”was assigned the largest weight for two main reasons.1.It appeared most important from a financial perspective of any future lighthouse project,and thus,essential to attract future investments.2.In contrast to other key criteria,a favorable(or unfavorable)levelized cost of hydrogenwhich is mostly dependent on the given wind and solar potential of a location appeared most difficult to be changed and/or improved by any developers or policymakers action.7 Puerto Antioquia was still under construction at the time of the analysis.8 The multicriteria analysis used the Analytical Hierarchy Process(AHP)technique.The AHP,devised by Thomas L.Saaty,simplifies complex decision-making by structuring it into a hierarchy of criteria and alternatives.This method evaluates alternatives through pairwise comparisons against each criterion,thus bringing clarity and rigor to the decision-making process.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy9A full overview of all criteria,sub-criteria and relative weights applied can be found in Annex 2.Table 2.1.Criteria,sub-criteria,and weights applied in the multicriteria analysis under Stage 1CriteriaExamples of main sub-criteriaWeightC1:Port infrastructure Adequate infrastructures to handle draught of vessels Availability of land and port development/expansion plans15:Energy potential and Infrastructure Levelized cost of hydrogen for 2030 and 2050 Water resources and existence of transmission lines in vicinity 45:Security Infrastructure vulnerability or exposure to climate change Safety radius for handling explosive or toxic substances5:Financial&Economic Foreign direct investment and existence of free trade zone Traffic volume and local alternative off-takers15:Environmental Existence and type of licenses for chemicals Areas of environmental protection7.5:Social Existence of ethnic or protected groups Skilled workforce7.5:Political Institutional performance Prior consultation(Consulta previa)on energy/port project5%Source:World Bank.This high-level assessment resulted in the selection of four Caribbean port locations:1.Puerto Brisa(in La Guajira,halfway between Santa Marta and Riohacha)2.Puerto Bolvar(in La Guajira,east of Cabo de la Vela)3.Barranquilla(in Atlntico,East Bank of the Magdalena River)4.Cartagena(in Bolvar,to be precise:Puerto Baha,located south of Cartagena)Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy10The exact geographic locations of the specific ports selected is shown in Figure 2.3.The final ranking of the high-level assessment under Stage 1 is displayed in Table 2.2.The relative dominance of Caribbean ports over Pacific ports can be explained with the geographical distribution of Colombias renewable energy potential across the country(Minergia,2022).This analysis focused on wind9 and solar conditions.10 The countrys best windboth onshore and offshoreas well as solar resources can be found along the Caribbean coast,specifically the Eastern part towards La Guajira.With a few minor exceptions,the same is true for Colombias solar potential.11Figure 2.3.Geographic locations of the four specific ports selectedSource:Google Maps.edits by World Bank.The location of ports are approximate only.9 Given the planned start of commercial operations in the early 2030s,the analysis focused on on-shore wind which is considered more mature than off-shore wind.Still,it is important to note that Colombia has excellent off-shore wind power generation potential which can be taken advantage of in the medium to long term(Minergia,2022).10 This analysis focused on green hydrogen-based fuels produced through electrolysis.Theoretically,green hydrogen can also be produced through biomass gasification.Yet,in the current analysis,biomass gasification was considered mainly to generate biogenic carbon dioxide,with hydrogen being a by-product only.Pure bioenergy was beyond the scope of this analysis.Yet,it has been explored through other studies.Bioenergy appears most relevant to ports along the Pacific coast where regions such as Buenaventura offer a lot of biomass.11 In contrast to Colombias wind resources,the countrys best solar resources are not only along the Caribbean coast,mainly La Guajira,but can also be found in the departments of Santander and Boyac.In return,these two departments have very unfavorable wind conditions,preventing the desirable complementarity of wind and solar resources for maximum full load hours.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy11Table 2.2.Final results of the high-level assessment under Stage 1#Port locationCodeIndividual scoreSpecific port targeted1Puerto BrisaP815.58%Puerto Brisa2Puerto BolvarP914.61%Puerto Bolvar3BarranquillaP612.07%Puerto de Barranquilla 4CartagenaP511.92%Puerto Baha5Santa MartaP711.19kuenaventuraP29.66zntioquiaP39.59%8MorrosquilloP48.25%9TumacoP17.12%Source:World Bank.2.2.Stage 2:Pre-feasibility studies of four port locations with highest potentialDuring Stage 2,the analysis focused on developing pre-feasibility studies for the four selected port locations to outline possible lighthouse investment projects.The goal was to understand the extent to which such lighthouse projects could be further pursued and eventually developed in Puerto Brisa,Puerto Bolvar,Barranquilla,and Cartagena,considering financial,technical,safety,environmental,social and regulatory aspects.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy122.2.1 Key features of portsTable 2.3.Highlights the key features of each of the ports shortlisted during Stage 1.Table 2.3.Key characteristics of each port shortlisted under Stage 2Port locationKey featuresPuerto Brisa(La Guajira)Figura 2.4 Puerto BrisaSource:Puerto Brisa.Used with the permission of Puerto Brisa.Further permission required for reuse.Small dry bulk port,mainly for coal exports,with strong owners interest in attracting new(green)business History,location,and usage:Built from 2011 to 2014,this relatively new,family-owned port in the Western part of La Guajira started operations in 2015.It mostly handles coal exports arriving by truck from coal mines in the interior of the country.Infrastructure,industry,and expansion:The ports underutilized single quay,which allows for a maximum vessel draft of approximately 17.5 meters,is equipped with a conveyor belt and chip loader;it could accommodate much more vessel traffic.Additionally,the port hosts a“Zona Franca”(Special Economic Zone)spanning 354 hectares,which has considerable potential for further development.There is no local industry nearby,yet.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy13 Resources available:The port has access to its own freshwater resources,the Rio Caas,with the license to use 300 liters per second.The adjacent space for renewable power production is geographically constrained due to the Sierra Nevada de Santa Marta in the South.Yet,conditions slightly further east are very good.Environmental and social challenges:Currently,700 MW of onshore wind power equipment(originally worth about US$1,400 million,in total)is sitting idle at the port due to a stalled renewable power project in La Guajira.This situation highlights critical social and environmental challenges related to indigenous communities that renewable power projects in the region may face.Puerto Bolvar(La Guajira)Figure 2.5.Puerto Bolvar,La GuajiraSource:jvillegas,https:/commons.wikimedia.org/wiki/File:El_Cerrejon.jpg,licensed CC BY-SA 4.0.Medium dry bulk port,currently exclusively dedicated to coal exports,but located in Colombias prime spot for renewable power production History and usage:This is the largest coal exporting port in Latin America,located at the northeastern-most tip of La Guajira.It has been in operation at least since 1985,using a direct loading system for the coal.The port is operated by“El Cerrejn”,a subsidiary of the multi-national mining company,Glencore.Infrastructure,industry,and expansion:The port has its own railway line by which coal is transported from the coal mine“El Cerrejn”,about 150 km south-west of the port.The port also features its own airport nearby.There is almost unlimited land available for further development.There is no local industry nearby,yet.Resources available:The port is located in Colombias top location for renewable power generation,thanks to the world-class complementary wind and solar conditions of La Guajira.Thus,it is ideal for green hydrogen production.There is no access to fresh water,though.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy14 Social and environmental challenges:This region of La Guajira is particularly affected by social challenges related to Indigenous communities.Miscellaneous:In 2033,the existing port concession and its affiliated operations of the coal mine“El Cerrejn”are expected to end.The Government of Colombia,including state-owned enterprises such as Ecopetrol,has a strong interest in facilitating Colombias energy transition.However,Glencore has remained silent so far on what to do with Puerto Bolvar after the end of the concession and/or whether to convert the port,maybe even before 2033.Barranquilla(Atlntico)Figure 2.6.Puerto de BarranquillaSource:Puerto de Barranquilla.Used with the permission of Puerto Barranquilla.Further permission required for reuse.Medium multi-purpose port with direct access to prime offshore wind resources and relevant local industry nearby History,location,and usage:Situated at the mouth of the Magdalena River,this port with a long history provides direct sea and river access to the interior of Colombia.It serves all key trade segments such as dry bulk,liquid bulk,and containers.Infrastructure,industry,and expansion:The port benefits from local industry for which green hydrogen is of interest.This includes,for instance,the Venezuelan fertilizer company,Monmeros,with strong interest in green ammonia production.Vopak,a leading Dutch gas operator,is actively interested in exporting hydrogen derivatives to their main bases in Europe(e.g.,Rotterdam),capitalizing on its current concession that is set to expire in 2033.The ports Palermo cluster has land of at least 100 hectares under a free trade regime within national customs territory available.Resources available:The Magdalena River boasts a plentiful freshwater supply.The port is ideally located close to Colombias prime offshore wind resources,for which the first exploratory concessions were auctioned in 2024.Miscellaneous:The Government of Atlntico,specifically the Governor,has shown keen interest in advancing the hydrogen economy in this region.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy15Cartagena(Bolvar)Figure 2.7.Cartagenas Puerto BahaSource:Puerto Baha.Used with the permission of Puerto Baha.Further permission required for reuse.Small to medium multi-purpose port with local industry,namely refinery and fertilizers,already using hydrogen or ammonia History,location,and usage:Puerto Baha is a relatively new port which commenced operations in 2015.It is strategically situated at the entrance of the Canal del Dique.Financed by the International Finance Corporation,among others,the port hosts a multi-modal terminal.So far,the port specializes in roll-on/roll-off commodities(i.e.,vehicles),as well as liquid hydrocarbons.Infrastructure,industry,and expansion:The port boasts abundant space,with only 30 percent currently in use.Reficar,an Ecopetrol refinery which is situated nearby,already utilizes hydrogen(not yet green hydrogen).Reficar has made a commitment to support local green ammonia production,targeting 440,000 tons annually by 2030.Currently,a hydrocarbon pipeline between Reficar and Puerto Baha is being planned.Additionally,Yara,a leading fertilizer producer with green subsidiaries such as Yara Clean Ammonia,already operates a fully equipped berth for ammonia imports nearby.Resources available:The area has relatively good solar conditions,but only moderate wind conditions.There are ongoing concerns regarding contamination of freshwater resources from the Canal del Dique and its impact on Cartagena Bay.Source:World Bank.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy162.2.2 Demand analysisWith ports of the future playing a triple role(as seen in Figure 1.2),this analysis estimated the potential future demand for green hydrogen-based fuels in Colombia.This was based on three categories:bunkering for ships,local industry,and exports.Bunkering for shipsThe future demand for green ammonia and green methanol for the years 2030,2040,and 2050 was gauged based on anticipated port calls by vessels with international destinations.For this,the analysis used a database with all port calls(including information size,cargo carrying capacity,average speed,average energy consumption by ship)for the calendar year 2023(DIMAR confidential port data,2024).Additionally,the future demand was calculated in light of the decarbonization targets set by the International Maritime Organization,specifically those linked to the uptake of zero or near-zero shipping fuels.The analysis shows that the most demand for green hydrogen-based fuels can be expected in the port location of Cartagena,followed by Barranquilla and Puerto Bolvar.Table 2.4 shows the projected demand for green hydrogen-based shipping fuels at the four shortlisted ports.With about 70 percent of the bunkering demand,Cartagena accounts for the largest share of future potential demand.This is because it represents the largest and busiest port location in Colombia.There are also various related ports in proximity,including the international container port of Cartagena,which serves as the largest transshipment hub in the Caribbean.All these ports in or next to Cartagena could easily be supplied with green hydrogen-based fuels from adjacent Puerto Baha by bunkering barge.The Port of Barranquilla,Puerto Bolvar,and Puerto Brisa account for the remaining 30 percent of the estimated future demand.Even here,the distances would be short enough to consider the production and storage of green hydrogen-based fuels in Puerto Brisa,for example,and the supply of these fuels by bunker barge to vessels at the Port of Barranquilla.Table 2.4.Green hydrogen-based shipping fuel demand in shortlisted ports in ColombiaGreen hydrogen-based shipping fuel demand kt H2eq/year203020402050Cartagena21330453Barranquilla577106Puerto Bolvar4.36590Puerto Brisa0.468Total30.7478657Source:World Bank.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy17The demand for green hydrogen-based shipping fuels at the four shortlisted port locations is expected to grow rapidly from 2030.In 2030,the selected ports could be in demand of up to 31 kt H2eq annually to supply zero-carbon fuels to ships.With stringent policy that is currently being developed at the International Maritime Organization,this demand is likely to grow rapidly in the future to 478 kt H2eq by 2040 and 657 kt H2eq by 2050.Local industryThe potential demand for green hydrogen and its derivatives by the local industry was estimated by analyzing the composition and gauging the interest of nearby industrial players.This involved screening the industrial setting for potential off-takers in the key sectors of chemical and fertilizers(including refineries),iron and steel,heavy-duty transport like aviation or trucking,as well as identifying minor opportunities in glass or energy generation.Table 2.5 displays the estimated demand by the local industry at the four shortlisted port locations.Table 2.5.Local industry demand in shortlisted port areas in ColombiaLocal industry demand kt H2eq/year203020402050Cartagena4.820.482.8Barranquilla2.124.877.9Puerto Bolvar010.227.2Puerto Brisa0.10.30.5Total7.055.7188.4Source:World Bank.In this context,the port locations of Cartagena and Barranquilla,with their strong local industry bases,offer the greatest potential for the additional off-take of green hydrogen and its derivatives.In Cartagenas port location,for instance,the presence of key off-takers like Ecopetrols refinery(Reficar)or Yara,a multi-national fertilizer company,results in an estimated annual hydrogen-equivalent demand of approximately 5 kt H2eq by 2030 and 83 kt H2eq by 2050.In Barranquilla,home to the Venezuelan fertilizer producer,Monmeros,the demand is estimated at 2.1 kt and 77.9 kt H2eq by 2030 and 2050,respectively.Given the current absence of any major local industry at Puerto Brisa or Puerto Bolvar,the potential demand there is considerably lower,with less than 0.5 kt H2eq and 28 kt H2eq annually by 2030 and 2050,primarily for the operation of heavy-duty trucking.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy18ExportsGiven Colombias geographic location and the anticipated supply-demand balance across different world geographies,the key foreign markets for the countrys hydrogen consist mainly of the European Union,in terms of east-bound exports,South Korea and Japan,in terms of west-bound trade,and Panama,in terms of proximity trade.Table 2.6.Hydrogen import demand in major countries and region Hydrogen demand for exports12 kt H2eq/year203020402050European Union7,60012,20023,900Japan and South Korea4,30012,80032,300Panama761,3332,014Total11,97626,33358,214Source:World Bank.In light of the scales anticipated,it becomes obvious that exports specifically to the European Union,South Korea and Japan currently appear as the most attractive option to commercialize green hydrogen and its derivatives produced in Colombia.It is projected that by 2030 close to the expected start of the envisaged lighthouse investment projects the total European Union demand for green hydrogen and derivatives will reach approximately 7,600 kt H2eq per year by 2030(Ministerio de Minas y Energa,2022).This European market is expected to triple in size by 2050,partly due to the adoption of zero-emission fuels,driven primarily by regionally set targets and regulations.Meanwhile,the Asian market,primarily targeting Japan and South Korea,is anticipated to require about 4,300 kt H2eq equivalent annually by 2030,with an almost eight-fold increase possible by 2050.Additionally,Colombia,with its superior renewable power potential,is well-positioned to supply the Panamanian market with green hydrogen-based fuels at a significantly lower cost than Panamas own production.Among others,Panama envisions itself as a zero-carbon bunkering distribution hub,with an expected demand of 600 kt H2 equivalent per year by 2030,expected to rise to 12,400 kt H2 in 2050.This refers to demand both for green ammonia and green methanol by ships calling port in Panama.According to Panamas Green Hydrogen and Derivatives Strategy(Secretara de Energa de Panam,2024),it is anticipated that,by 2030,green hydrogen-based fuels will account for 5 percent of the countrys bunker fuel supply.12 This refers to the total demand,not only the market share that Colombia may be able to capture.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy19Aggregated demandCurrently,exports represent the largest business opportunity to commercialize green hydrogen-based fuels in Colombia.The market potential of selling green hydrogen or its derivatives to foreign markets such as the European Union,East Asia,or Panama far exceeds that of other demand centers,such as bunkering or local industry.The numbers for the maximum market potential suggest that the likely export market could be 60 to 65 times larger than the production planned for each project,as outlined in the pre-feasibility study.Figure 2.8 shows the differences in the orders of magnitude scale between the three demand types.As the bars for bunkering for ships and local industry would be hardly visible otherwise,the figure uses a logarithmic scale.The data table within the figure clarifies with the actual numbers.Figure 2.8.Comparison of the market potential for green hydrogen-based fuels“made in Colombia”by demand type1101001,000203031711,9764785626,33365718858,21420402050Logarithmic scale based on kt H2 eq/year10,000100,000BunkeringLocal industryExportSource:World Bank.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy202.2.3 Supply analysisTo assess the technical and financial viability of the project setups,the analysis assumed large-scale designs with an annual output of approximately 50,000 tons per year of green hydrogen(t H2).While there are plans for almost 600 green hydrogen production projects with capacities of more than 50,000 t H2 per year(IEA,2025),the largest green hydrogen production currently in operation is Sinopecs“Kuqa”project in Xinjiang,China,which targets 20,000 t H2 production in 2025.This means that Colombias project setups currently envisaged here for start operations in the early 2030s can be considered an ambitious interim target on the countrys path towards becoming an important player in the emerging global green hydrogen economy.The potential output of 50,000 t H2 per year would allow for an annual production of roughly 300,000 to 400,000 tons of green ammonia or green methanol.In fact,the dominant business opportunity offered by foreign markets to which green hydrogen would possibly be exported is in the form of green ammonia or green methanol.This is thanks to their higher volumetric energy density.13 This means that they can hold more energy per unit of volume,e.g.,liters or cubic meters,which is important for ships where space(cargo)matters much more than weight.Therefore,all project setups were assumed to produce green ammonia or green methanol as main products(with green hydrogen as an intermediary output).This assumption was also in line with shippings overall preference for derivatives like ammonia and methanol over pure hydrogen,in light of easier storage and/or handling.Assuming cost-competitive Colombian production at the global scale,each lighthouse investment projects potential production of green hydrogen considered here could easily be absorbed by the large export demand.For instance,while any lighthouse investment project may produce around 50,000 t H2eq,this would fulfill only 0.7 percent of the European Unions and 1.2 percent of Japans and South Koreas import demand by 2030,and 0.2 percent of both regions demand by 2050.In return,the demand for green hydrogen-based shipping fuels in Colombia would initially be quickly satisfied by one single lighthouse investment project becoming operational by the early 2030s(50,000 t H2eq produced annually vs.30,700 t H2eq needed at the four port locations in 2030).Yet,in 2050,estimated demand would significantly outstrip the supply by the four projects considered(4x 50,000 t H2eq produced vs.657,000 t H2eq in demand at the four port locations).This is owing to the stringent policies by the International Maritime Organization to be adopted in autumn 2025,eventually ramping up the demand for zero-carbon bunker fuels globally.2.2.4 Value chainsHaving gauged supply and demand,the analysis focused on the technical configurations needed for any given green ammonia or green methanol value chain.This analysis included the definition of technical key components and flows of materials to cover the full value chain,from the production of renewable power to the usage of the green molecules,i.e.,green hydrogen,green ammonia or green methanol by ships,local industry,and/or export markets.Depending on the choice of ammonia over methanol,or vice versa,the value chain will look slightly different.13 Volumetric energy density is different from gravimetric energy density,which relates to the energy content per unit of weight.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy21Green ammonia value chainThe common value chain of producing green ammonia is a relatively streamlined and well-established process.Although specific local conditions may vary,the value chain for green ammonia follows a relatively standardized production pathway,whose key components and steps are illustrated in Figure 2.9.Figure 2.9.General value chain for a green ammonia project setup at the port locationsRenewableEnergyElectricityElectrolysisCompressionDesalinatedwaterHydrogenAir Separation UnitHaber BoschPlantAmmoniaTankDuct systemand CompressorsBunkering/ExportationLocal use(e.g,fertilizer etc.)ElectricityNitrogenHydrogenAmmoniaSource:World Bank.As a first step,producing green ammonia requires the production of green hydrogen.Green hydrogen is produced through electrolysis,a process which splits water into hydrogen(H2)and oxygen(O2),using an electric current.This means that any electrolysis requires a constant supply of electricity and water.In terms of electricity supply,the process requires a lot of electric power.To make the electrolysis process green or zero-carbon,it needs to be powered by renewable electricitymost commonly from wind and solar power.Certification is vital for hydrogen to be recognized as green or zero-emission.For example,the European Union mandates that,for grid-connected projects,at least 90 percent of the electricity sourced from the grid must come from renewable energy sources for the hydrogen produced to qualify as green or renewable hydrogen(EU,2023).However,so far,Colombias current power mix consists of 77 percent renewable energy sources(IEA,2024).This makes it likely that initial projects will be planned off-grid to avoid any compliance issues with the certification requirements of key foreign markets such as the European Union.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy22In terms of water supply,purified water is needed.This can be either freshwater or desalinated seawater,the latter being very relevant in arid coastal areas which are freshwater constrained.During the electrolysis process,the hydrogen is captured and stored for further use and the oxygen is usually released into the atmosphere.As a second step,the green hydrogen from electrolysis is combined with nitrogen separated from the air to produce green ammonia.Here,nitrogen(N2)is first extracted from the air through an air separation unit14.Then,the Haber-Bosch processthe primary industrial method for producing ammoniamakes the hydrogen react with the nitrogen at high temperature and pressure to create ammonia(NH3).To make this process green,it needs to be powered by renewable electricity,too.The resulting ammonia is then collected and stored in specialized tanks,ready for transportation,e.g.,by ship.Green methanol value chainThe value chain of producing green methanol is also relatively straightforward,though slightly more complex than producing green ammonia,due to the need for carbon dioxide.In contrast to green ammonia,green methanol can be produced via three pathways:1.A biological pathway(anerobic digestion of biomass)2.A thermo-chemical pathway(gasification of biomass)3.An electrical pathway(power to methanol)In this analysis,the focus was on the electrical pathway,with some auxiliary support from the thermo-chemical pathway,primarily to provide the indispensable carbon dioxide.The value chain considered in this analysis is illustrated in Figure 2.10.14 According to the stoichiometric calculation,it requires 177 kg of H and 824 kg of N for producing one ton of ammonia.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy23Figure 2.10.General value chain for a green methanol project setup at the port locationsCO2 Captureand StorageBiogasRenewableEnergyElectricityElectrolysisCompressionDesalinatedwaterHydrogenBiomassgasification and MethanolproductionMethanolStorageTankPipelinesystem andCompressorsBunkering/ExportationLocal use(e.g,fertilizer etc.)ElectricityCO2HydrogenMethanolSource:World Bank.As a first step,producing green methanol via the electrical pathway requires the same green hydrogen as for green ammonia.This means splitting water into hydrogen(H2)and oxygen(O2)using electrolysis powered by renewable electricity from wind or solar energy.As a second step,the green hydrogen from electrolysis is further synthesized with carbon dioxide to produce green methanol.This carbon dioxide synthesis is the main difference to combining green hydrogen with nitrogen,as required for green ammonia.There are two primary sources for the carbon dioxide needed.The first sourcing approach relates to capturing carbon dioxide from exhaust gas emissions from industry such as cement factories,refineries,thermal power plants,and direct air capture.The second sourcing option utilizes biomass gasification to produce so-called synthesis gas or syngas.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy24Sourcing carbon dioxide from the gasification of biomass is usually preferable over sourcing it from industrial processes.This is because of technical and environmental reasons.First,it is considered superior in terms of efficiency,as the process does not only produce carbon dioxide,but also a limited amount of hydrogen.This reduces the reliance on the main electrolytic hydrogen15.Analysis suggests that the absence of any hydrogen from the biomass gasification process may increase the need for electrolyzer capacity by up to 20 percent,thereby raising any green methanol projects overall capital expenditures.Second,green methanol produced through the recycling of industrial carbon dioxide emissions is subject to regulatory restrictions.This limits its consideration as true green methanol from the European Unions import perspective.Once synthesized,the green methanol is collected,stored,and prepared for transport.After the synthesization process,the green methanol needs to undergo a purification process which eliminates any remaining impurities and excess water.Afterwards,it is stored in specialized tanks and made ready to be transported or loaded onto vessels.15 With CO2 capture from an industrial source such as a cement plant or refinery,0.19 ton of electrolytical H2 is required to produce one ton of green methanol.In contrast,with CO2 from biomass gasification,only 0.06611 ton of electrolytical H2 will be needed to produce the same amount of methanol.The remaining H2 would be supplied as a by-product during the biomass gasification.Project Setups03 The analysis identified 18 potential project setups at the port locations of Cartagena,Barranquilla,Puerto Brisa,and Puerto Bolvar,with seven priority project setups retained for detailed technical and financial analysis.The analysis optimized these priority project setups for low-cost production efficiency,considering site-specific conditions like renewable energy,water,infrastructure,etc.Estimated capital expenditures ranged from US$1.6 billion(for green ammonia in Puerto Bolvar NH3)to US$2.7 billion(for green ammonia in Cartagena).The financial viability of the priority projects remained highly dependent on the future market prices for green hydrogen-based fuels.These market prices,in turn,are primarily determined by international policy decisions.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy26As part of the pre-feasibility assessments,the analysis defined a pool of 18 potential project setups across the four shortlisted port locations.The key design options or design trade-offs included:i.The choice of the end product(green hydrogen,green ammonia,and/or green methanol),ii.The choice of energy supply(renewables only,power grid,or renewables with grid connection),iii.The choice of water supply(freshwater or desalinated water),the choice of carbon dioxide source(industrial CO2 or biomass),and iv.The choice of energy transport(transport of electrons),i.e.,electricity,or transport of molecules(i.e.,hydrogen or derivatives).The full list of these 18 technical project setups can be found in Annex 3.These potential project setups were then screened against key evaluation criteria to identify those best suited for an even more detailed analysis.While the screening focused primarily on the anticipated levelized cost16 of the final green molecule to be produced i.e.,green hydrogen,ammonia,or methanol it also covered additional points for consideration at each port location.These included potential regulatory requirements,social or environmental issues,logistical challenges,and key considerations for entering the European market.17Eventually,the analysis identified seven priority project setups for a final detailed technical and financial analysis.These projects have a target to start commercial operations in 2032,including i.The production of green ammonia using desalinated seawater(one project at each of the port locations shortlisted),ii.The production of green methanol using desalinated seawater(one each in Cartagena and Barranquilla,thanks to the abundant availability of biomass for gasification at these sites),and iii.The production of green ammonia exceptionally using freshwater(one at Puerto Brisa,thanks to the unique fresh water access license at this site).In all setups,the final markets for the molecules to be produced consisted of bunkering,local industry,and exports.16 Levelized cost of ammonia or methanol are a measure of the average net present cost of producing ammonia or methanol in US$per t over the lifetime of a project.17 This included,for instance,European regulatory requirements for renewable fuels of non-biological origin.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy273.1.Technical analysisFigure 3.1.Left-Map of solar photovoltaic power generation potential,kWh/kWp per day;Right-Map of wind speeds at a height of 100 meters within a 100-km radius Source:World Bank,based on Global Solar Atlas,globalsolaratlas.info,and Global Wind Atlas,globalwindatlas.info.kWh/kWp means kiloWatt hour relative to the kiloWatt peak,or the ratio of energy produced relative to peak power capacityThese seven priority project setups were technically optimized to maximize the production of green hydrogen,green ammonia,or green methanol,while minimizing costs.It is important to remember that the targeted production levels are around 50,000 t H2 or 300,000-400,000 t NH3 or MeOH per year.The technical optimization included the strategic combination of the best renewable energy resources,i.e.,wind18 and solar,available within a maximum radius of 100 km.This step is illustrated in Figure 3.1.Based on this input,the analysis derived a strategic design of the optimal generation capacities to be installed to maximize output and minimize investments.Other criteria such as the exclusion of areas with natural parks or indigenous reservations were also applied.The ideal technical perimeters derived from this optimization process are listed in Table 3.1.Table 3.1.Optimized technical parameters of the 7 priority project setupsPort location and green target moleculePhotovoltaic solarWindSpace requiredAnnual productionBiomass consumptionWater consumptionTarget marketCartagena NH3 Renewable energy:Solar photovoltaic energy Water:Desalination plant2,308 MW(LF:20.3%)-4,847 ha377,994 t NH3/year-2,983,329m3 H2O/year(sea)Bunkering Local industry Export18 For this analysis,only on-shore wind was considered,given the challenges of quantifying the potential and the projected timing of future offshore projects in Colombia.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy28Port location and green target moleculePhotovoltaic solarWindSpace requiredAnnual productionBiomass consumptionWater consumptionTarget marketCartagena MeOH Renewable energy:Solar photovoltaic energy Water:Desalination plant Biomass:Rice and Oil palm plantation located in the surroundings of the municipality of Mara La Baja,Bolvar1,029 MW(LF:18.6%)-2,161 ha381,268 t MeOH/year396,519 t biomass/year1,217,359 m3 H2O/year(sea)Bunkering Local industry ExportBarranquilla NH3 Renewable energy:Solar photovoltaic energy and wind energy Water:Desalination plant798 MW(LF:20.8%)687 MW (LF:30.7%)18,356 ha314,206 t NH3/year-2,400,290 m3 H2O/year(sea)Bunkering Local industry ExportBarranquilla MeOH Renewable energy:Solar photovoltaic energy and wind energy Water:Desalination plant Biomass:Banana,yuca or oil palm,primarily from locations in the north-western part of the department of Magdalena598 MW(LF:20.8%)62 MW(LF:30.7%)2,761 ha289,921 t MeOH/year301,517 t biomass/year856,578 m3 H2O/year(sea)Bunkering Local industry ExportPuerto Brisa NH3(Fresh water)Renewable energy:Solar photovoltaic energy and wind energy(located 42km northeast of the port area)Water:Existing concession authorized by the catchment from the Caas river649 MW(LF:20.1%)654 MW(LF:33.7%)17,242 ha297,199 t NH3/year-829,595 m3 H2O/year(fresh)tBunkering Local use(trucks)ExportPuerto Brisa NH3 (Desalination)Renewable energy:Solar photovoltaic energy and wind energy(located 42km northeast of the port area)Water:Desalination plant 723 MW(LF:20.1%)607 MW(LF:33.7%)16,325 ha292,432 t NH3/year-2,231,490 m3 H2O/year(sea)Bunkering Local use(trucks)ExportWinds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy29Port location and green target moleculePhotovoltaic solarWindSpace requiredAnnual productionBiomass consumptionWater consumptionTarget marketPuerto Bolvar NH3 Renewable energy:Solar photovoltaic energy and wind energy Water:Desalination plant210 MW(LF:23.3%)632 MW(LF:51.2%)15,786 ha315,963 t NH3/year-2,370,117 m3 H2O/year(sea)Bunkering Local use(trucks)ExportSource:World Bank.Units are presented as Load Factor(LF),megawatts(MW),and hectares(ha),cubic meter(m3),respectively.From a developer and investor perspective,several conclusions which highlight the dependence of each project setup on unique site-specific circumstances can be drawn.Site-specific circumstances for green ammonia or methanol projects are significantly determined by,for instance,the(non-)availability of local biomass,of favorable wind and/or solar conditions,of physical space,or of fresh water at the port location under consideration.Across the seven priority project setups identified,the suggestions from the configuration analysis include:Only Cartagena and Barranquilla were identified as suitable locations to produce green methanol.Such green methanol(MeOH)production could be envisaged as an alternative to green ammonia(NH3)production,which is deemed possible at all four port locations.This exclusive green methanol potential at Cartagena and Barranquilla is mainly due to the local conditions,i.e.,availability of biomass as a crucial feedstock input for methanol production within a maximum radius of 100 km.For projects of that size,around 300-400 tons of sustainable and reliable biomass would be required annually.In many locations,this significant supply challenge outweighs the advantage that green methanol projects otherwise offer.This advantage consists of the fact that projects with green methanol projects with biomass gasification usually require a lower amount of electrolytic hydrogen compared to green ammonia projects.The more important spatial needs for any green ammonia project compared to any green methanol project may pose a barrier at space constrained sites.This larger physical footprint required by ammonia over methanol is due to the increased need for electrolytic hydrogen generation through wind turbines and solar panels.In Barranquilla,for instance,the ammonia project would need approximately 18,300 hectares for the construction of the renewable energy infrastructure alone.Conversely,the alternative methanol project,using biomass gasification for the carbon dioxide supply and taking advantage of the“by-product”that is green hydrogen,would significantly reduce the amount of land required to just 2,761 hectares.Cartagena was designed to produce green molecules exclusively using a solar photovoltaic system.This system,working with a larger energy storage than other projects,would operate without any wind power.This is due to Cartagenas limited potential for on-shore wind generation.As a solar photovoltaic energy source can only operate approximately half the day,the solar farm would need to be significantly oversized to generate sufficient renewable electricity.This oversizing of the system could result in additional curtailment(unused energy)of up to 32 percent,depending on the project and the year of operation,when the electrolysis already operates at full load,the battery storage is fully charged,but the solar farm still produces renewable electricity.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy30 As the only port location,Puerto Brisa could take advantage of an underutilized concession for freshwater use.Despite this unique competitive advantage,an environmentally less intrusive project setup at Puerto Brisa was also taken into consideration.This alternative setup would make use of a seawater desalination plant in the vicinity of the port.In general,it can be expected that the green ammonia project consumes about three times more water(2,300,000 and 3,000,000 m3 H2O per year in Barranquilla and Cartagena,respectively)compared to green methanol projects of comparable size(850,000 and 1,250,000 m3 H2O per year in Barranquilla and Cartagena,respectively).In summation,it is essential to consider all these site-specific circumstances not only as technical constraints but also as cost factors.As plant load factors and annual production levels may differ among port locations,it appears important to take into account all these circumstances in one uniform metric.Usually,this is the levelized(production)cost of the main green target molecule,i.e.,either green ammonia or green methanol,across various project setups.3.2.Financial and economic analysisAs a subsequent step,a financial analysis examined all seven priority project setups.To allow a comparison across all project setups,Table 3.2 lists the projects with the estimates of their respective levelized cost of green ammonia(LCOA),levelized cost of green methanol(LCOM),capital expenditures(CAPEX),as well operating expenditures(OPEX).Table 3.2.Levelized costs,CAPEX and OPEX of each priority project setupPriority project setupLCOA US$/tLCOM US$/tCAPEX MUS$OPEX kUS$/yearCartagena NH3816-2,69639,525Cartagena MeOH-8682,258106,844Barranquilla NH3729-1,97932,014Barranquilla MeOH-8361,62680,979Puerto Brisa NH3(Fresh water)738-1,87531,737Puerto Brisa NH3(Desalination)734-1,89029,116Puerto Bolvar NH3604-1,60830,458Source:World Bank.MUS$:Million US dollars.kUS$/year:Thousand US dollars per year.In the financial analysis,Puerto Bolvar offers the lowest LCOA,while both Barranquilla and Cartagena offer similar LCOM.The lowest LCOA of around US$600 per t NH3 could likely be achieved at Puerto Bolvar thanks to the outstanding complementary wind and solar energy resources on site.The LCOM at Barranquilla and Cartagena would be relatively similar,both falling into the narrow range of US$840 to 870 per t MeOH.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy31All estimates for the levelized cost of green ammonia or methanol“made in Colombia”at the four port locations can be considered competitive from a global perspective.For instance,Figure 3.2 shows reference prices derived from various willingness-to-pay studies for green ammonia and green methanol in the European Union(Hinicio,2024),along with a comparison to the actual market prices of their gray counterparts.These benchmark values were cross-checked,for the hydrogen production component against the results of the first Pilot Auction for Renewable Hydrogen in the European Union in 2024.Based on this,the estimated average price for green ammonia was assumed at US$1,188 per t NH3,which is significantly above the LCOA estimated in this analysis.Similarly,green methanol was assumed at an average of US$1,404 per t MeOH,also exceeding the LCOM estimated here.However,two key considerations must be taken into account.First,these reference prices are based on a very limited sample of known green molecule transactions and willingness-to-pay studies,as there is currently no liquid market for green ammonia or green methanol.Second,the market prices of their gray counterparts remain substantially lower,at US$658 per t NH3(Trade Map,2024)and US$375 MeOH(Bunker Price,2024),respectively.Still,green ammonia from Puerto Bolvar,the most financially viable priority project in the analysis,could compete with these lower prices for gray ammonia.Figure 3.2.Comparison of the market prices for green ammonia,green methanol,gray ammonia,and gray methanol$2,000$1,800$1,600$1,400$1,200$1,000$800$600$400$200$0Green ammoniaGreen methanolGray ammoniaGray methanol$658$375US$per tonMaxMinAverage$1,620$1,188$756$1,728$1,404$1,080Source:World Bank.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy32CAPEXIn terms of CAPEX,all priority project setups are relatively capital-intensive,with CAPEX ranging from US$1.6 billion to US$2.7 billion.The project in Puerto Bolvar would incur the lowest CAPEX of US$1.6 billion.This comes from the outstanding renewable energy resources in terms of wind and solar,which allow for the highest full load hours across all projects.The two projects in Cartagena show the highest CAPEX.This is primarily due to the least favorable wind power resources,mandating an exclusive focus on solar power.For the green ammonia project setup in Cartagena,the largest share of CAPEX would be needed for the solar farm(39 percent or US$1,050 million)and the electrolysis(35.3 percent or US$951 million).The green methanol project setup in Cartagena would require most CAPEX for the biomass gasification plant(53 percent or US$1,208 million),the solar farm(21 percent or US$468 million),and the electrolyzer(18 percent or US$412 million).The case of Barranquilla shows a similar picture of CAPEX allocation need.This means that while the green ammonia project setups need most of their CAPEX(50 percent)for their renewable energy capacity,the green methanol project setups need to dedicate the major share of their CAPEX(50 percent)to the biomass gasification plant.OPEXIn terms of OPEX,green ammonia projects turn out to be less costly than green methanol projects.While ammonia projects show relatively similar OPEX,ranging from US$29 million to 40 million per year,methanol projects demonstrate much higher annual OPEX of US$81 million to 107 million.This difference stems primarily from the higher OPEX required by green methanol projects to ensure the steady supply of biomass and the operation of the methanol synthesis plant.In Barranquilla,the green methanol project setup would require an annual OPEX of around US$107 million,with 63 percent needed for the biomass supply and 23 percent for the operation of the biomass gasification plant and methanol reactor.In return,the green ammonia project setup at the same port location would necessitate OPEX of approximately US$40 million per year,where operating the wind park(36 percent)and the electrolysis(21 percent)account for the two largest OPEX positions.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy33Figure 3.3.Overview of CAPEX and OPEX for the two priority projects in CartagenaCartagenaNH3CartagenaMeOHShort Term(2025-2030)Mid Term(2030-2040)Long Term(2040-2050)1,175 MUSDGeneration parks and electrical facilities(includes land acquisition)Operation and maintenance costs(includes replacementof electrolyzer stack andbattery system)1,165 MUSDCapexOpex435 MUSDGeneration parks and electrical facilities(includes land acquisition)Operation and maintenance costs(includes replacement of electrolyzer stack and battery system)Acquisition,construction,installation,and commissioning of NH3 production,supply,and export plant1,519 MUSDAcquisition,construction,installation,and commissioning of MeOH production,supply,and export plant1,823 MUSD2,747 MUSDSource:World Bank.Figure 3.4.Overview of CAPEX and OPEX for the two priority projects in BarranquillaBarranquilla NH3Barranquilla MeOHShort Term(2025-2030)Mid Term(2030-2040)Long Term(2040-2050)1,083 MUSDGeneration parks and electrical facilities(includes land acquisition)Operation and maintenance costs(includes replacementof electrolyzer stack andbattery system)875 MUSD343 MUSDGeneration parks and electrical facilities(includes land acquisition)Operation and maintenance costs(includes replacement of electrolyzer stack and battery system)Acquisition,construction,installation,and commissioning of NH3 production,supply,and export plant896 MUSDAcquisition,construction,installation,and commissioning of MeOH production,supply,and export plant1,283 MUSD2,071 MUSDCapexOpexSource:World Bank.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy34As a result,it can be concluded that green ammonia projects usually face higher CAPEX and lower OPEX,while green methanol projects face lower CAPEX and higher OPEX.This becomes evident where the two project types were considered in parallel at the same port locations,e.g.,in Cartagena or Barranquilla.The higher CAPEX requirements by green ammonia usually come from the need for a larger renewable energy production capacity in terms of wind and solar power to produce more electrolytical hydrogen.In return,the higher OPEX of green methanol are due to the need for a steady supply of biomass and the constant operation of the methanol synthesis.These differences are illustrated in Figure 3.3 and Figure 3.4.Eventually,Colombias choice of target export markets will also need to consider shipping distance.The transport costs to foreign markets have not yet been taken into account in the current analysis.Shipping costs for ammonia are estimated at around 4 US$per t NH3 per 1,000km(Deloitte,2023)and slightly lower for methanol,at around 2 US$per t MeOH per 1,000km.However,some studies report a wider range of 412 US$per t NH3 per 1,000 km,potentially due to the inclusion of port-related costs(Salmon&Baares-Alcntara,2021).Despite concerns about transport distance,Colombias shipping routes to European markets are,for instance,not significantly longer than those from Saudi Arabia,a key competitor.If exporting to Panama,Colombia would not face any transport cost disadvantages compared to neighboring countries such as Costa Rica,Panama or Trinidad and Tobago,while being able to produce green hydrogen-based fuels at a much lower cost.The financial analysis reveals that in the base scenario sales prices,five out of seven priority project setups would show a positive net present value(NPV).This base scenario assumes average green premium sales prices for the green molecules,a weighted average cost of capital(WACC)of 13.75 percent,and a project lifetime of 25 years,as displayed in Table 3.4.In this scenario,all project setups except green ammonia production in Cartagena would be at a positive NPV.All other project setups show internal rates of return(IRRs)ranging from 14 percent to 24 percent and payback periods between six and 11 years.The main results of the financial analysis are presented in Table 3.3.Table 3.3.Comparison of the main results of the financial analysis in the base case scenarioPriority project setupNet present value(US$)Internal rate of returnPayback(Years)Debt-service coverage ratioCartagena NH3-188,537,82911.241.25Cartagena MeOH320,724,51619.32.55Barranquilla NH352,715,86714.741.38Barranquilla MeOH299,273,68821.07q.61Puerto Brisa NH3(Fresh water)34,422,15114.431.37Puerto Brisa NH3(Desalinated water)35,390,96314.451.37Puerto Bolvar NH3419,753,96124.24a.72Source:World Bank.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy35For green ammonia,the priority project setup in Puerto Bolvar shows the best financial results.This is largely due to the world-class renewable energy resources in Eastern La Guajira,which would enable the project to produce green ammonia most cost-effectively,thus yielding the highest profit margins with green premium prices.In general,it can be said that the IRR of the green ammonia projects increases from West to Eastthereby correlating with the improving renewable energy conditions from good to excellent.For green methanol,the priority project setup in Cartagena may be financially slightly more competitive than the one in Barranquilla.The small difference in the results stems primarily from the different market demand potential that each project may meet.Based on the estimates of this analysis,Cartagena could generate approximately 33 percent higher total revenues(around US$3 billion)than Barranquilla(around US$2.3 billion).This is a result of Cartagenas ability to serve a potentially larger market for bunkering and local industry.Table 3.4.Key parameters for Scenarios for sensitivity analysis of financial viabilityOptimistic scenario(green vs.green)Base scenario(green vs.green)Pessimistic scenario (green vs.green)Worst-case scenario(green vs.gray)Sales price assumptionGreen molecules can be sold at maximum premium pricesGreen molecules can be sold at average premium pricesGreen molecules can be sold at minimum premium pricesGreen molecules can be sold at prices for gray molecules onlyAmmonia sales price per t NH3 US$1,620US$1,188US$756US$658Methanol sales prices per t MeOHUS$1,728US$1,404US$1,080US$375WACC13.75%with upwards and downwards variationsLifetime25 years,entry into operation in 2032Source:World Bank.Although the LCOA and LCOM of Colombia are relatively competitive compared to other parts of the world,the financial viability heavily relies on the final sales price of the green molecules.The large differences in these prices,e.g.,between green molecules and gray molecules,are illustrated again in Table 3.4 and visualized in Figure 3.2.Thus,the question remains whether future markets will sufficiently reward green ammonia or green methanol as green premium products,which can achieve higher prices than their gray competitors.These markets are policy-driven and largely depend on the stringency of climate policies adopted by the European Union,South Korea,and Japan for exports,and the International Maritime Organization for shipping fuels.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy36The sensitivity analysis also reveals that no project would be financially viable if the green molecules needed to compete directly with their gray counterparts.If the“made in Colombia”green ammonia or green methanol could not be sold at premium prices thanks to their intrinsic decarbonization value,but would need to be sold at current market prices for the same molecules produced with fossil fuels,then all priority project setups would become financially unviable.This risk is particularly substantial for methanol,where the price of gray methanol is 73 percent lower than the average premium price of green methanol assumed in the base scenario.Similarly,the price of gray ammonia compared to green ammonia is 55 percent lower.If the green molecules could be sold at minimum premium prices onlyinstead of average premium prices,financially unviable projects can be made viable again with support.In the sensitivity analysis,the minimum premium prices for green molecules were set at US$756 per t NH3 and US$1,080 per t MeOH.Under these low premium prices,all projects show a negative NPV.Yet,some of them can become financially viable againmostly with a lowered WACC.For instance,even under minimum premium prices,green methanol from Cartagena and Barranquilla would show a positive NPV if the WACC could be decreased from 13.75 percent to 10 percent(or if sales prices increased by 1 percent annually).Similarly,for green ammonia in Puerto Bolvar,under minimum premium prices,a positive NPV could still be achievable if the WACC was lowered to 10 percent.Alternatively,the financial viability of the priority project setups could be restored through subsidies to the CAPEX.Assuming that the green molecules could only be sold at minimum premium prices,CAPEX subsidies could make the difference.For the green ammonia projects,these subsidies would need to range from 23 percent in Puerto Bolvar to 44 percentthe worst casein Cartagena.For the green methanol projects,subsidies of 16 percent to 18 percent would be sufficient to make the projects financially viable again.These subsidy levels would obviously need to be justified by the expected socio-environmental benefits.Additional options can improve the financial viability of the priority project setups under consideration.First,additional revenues could be generated if the commercialized surplus energy from the projects,which is not needed to produce green molecules,is fed into the power grid.This potential revenue stream as well as the sale of surplus desalinated water have not yet been considered in the financial analysis.Second,the Law 1715 of 2014 allows for a 50 percent deduction of total investments from taxable income.While this does not affect the projects cashflow,NPV and IRR directly,it still improves the shareholders cashflow,thereby increasing their IRR.Third,the financial structuring of the projects could be optimized.For instance,involving a development bank,or engaging in a public-private partnership could mobilize concessional finance,improve overall risk allocation,and enhance investment profitability.Furthermore,Colombia could draw on a variety of support platforms offered by development partners to foster green hydrogen projects in developing countries.The World Bank and other development finance institutions have introduced dedicated technical support and financing mechanisms designed to secure steady,adequate financing over a projects duration.These seem particularly important in cases of fiscal austerity.For example,the 10 Gigawatt(GW)Clean Hydrogen Initiative aims to advance green hydrogen projects ranging from 100 MW to 1 GW to Final Investment Decision in Emerging Markets and Developing Countries by 2030(World Bank,2023).Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy37Additionally,the new World Banks Fondo de Transicin Energtica envisages combining concessional financing with private capital to mitigate risk and reduce costs in critical energy transition projects in Colombia.Next to the financial benefits,each priority project setup at the respective port locations is expected to yield socio-economic benefits in terms of economic development,climate action,and support to indigenous communities.In a first step,these socio-economic benefits relate primarily to increased tax revenues,industrial innovation,and employment opportunities in green quality jobs in Colombia.Furthermore,they would be linked to broader climate change mitigation.For instance,if the projects started feeding surplus electricity into the national power grid,this would help decarbonize Colombias power grid19.Finally,surplus electricity from wind parks and solar farms as well as surplus water from desalination plants could be supplied to indigenous communities in energy-and water-constrained areas in La Guajira,improving their livelihoods.19 One of the many consequences of an increasing grid decarbonization would be that the national electricity mix would eventually reach 90 percent of renewable energy sources,which would allow the country to produce EU-compatible green hydrogen,ammonia,or methanol directly through grid-connected projects.Lighthouse Roadmap04 The goal is to position Colombia as a leading player in the international green hydrogen economy,and develop one or more green ammonia and green methanol projects at the four shortlisted port locations.To support this goal,a lighthouse roadmap structured around six strategic axes was developed:(i)Governance,(ii)Regulation,(iii)Value chain,(iv)Market,(v)Social and Environmental,and(vi)Financial and Economic.Given the time needed to develop green hydrogen-based value chains and markets at large scale,the lighthouse roadmap distinguished the following timelines in its recommended actions:(i)Short term:2025-2030;(ii)Medium term:2031-2040;(iii)Long term:2041-2050.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy39Based on the findings from Stage 1 and Stage 2,a lighthouse roadmap was developed to facilitate the positioning of Colombia as a key player in the emerging global green hydrogen economy.This lighthouse roadmap was specifically aimed at supporting the development of one or multiple of the green ammonia and green methanol projects identified at the four shortlisted port locations.This is primarily to contribute to Colombias economic development in terms of foreign direct investments,green innovation,and job creation.Furthermore,the lighthouse roadmap seeks to support the decarbonization of Colombias industry,the decarbonization of the maritime transport sector,and further climate change mitigation in industrial sectors of Europe or East Asia.The lighthouse roadmap applies a framework based on six strategic axes.These six axes are(i)Governance,(ii)Regulation,(iii)Value chain,(iv)Market,(v)Social and Environmental,and(vi)Financial and Economic.The framework is illustrated in Figure 4.1.Figure 4.1.Six-axes framework of the lighthouse roadmapGovernanceValue ChainMarketFinancial and EconomicSocial andEnvironmental123645RegulationStrategic GuidelinesSource:World Bank.The lighthouse roadmap puts forward recommended actions in a three-phased approach.Given the time needed to develop green hydrogen-based value chains and markets at large scale,the following phases considered are:(i)Short term:2025-2030;(ii)Medium term:2031-2040;(iii)Long term:2041-2050.This timeline is illustrated by Figure 4.2.Based on a gap analysis identifying key challenges,the lighthouse roadmap makes specific recommendations for action.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy40Figure 4.2.Time frame for recommended actions under the lighthouse roadmapShortTerm2025203020402050MediumTermLong TermSource:World Bank.4.1.Challenges and gapsNext to these financial and socio-economic benefits discussed above,the development of the priority project setups faces various challenges.A gap analysis was conducted to identify,document,and compile the main challenges to address in the pursuit of developing one or more priority project setups.Many of these challenges are closely linked to the nascent nature of the hydrogen economy.This is a common issue that all countries interested in producing green hydrogen-based fuels are currently facing.Table 4.1 outlines and groups the main challenges or gaps identified which are likely to deserve the most attention in the next steps of project development.Table 4.1.Main challenges or gaps identified for further project developmentAxisMain challenges or gaps identified1 Governance Roles,responsibilities and coordination:Limited clarity regarding the specific roles and responsibilities of public and private entities in developing green hydrogen-based value chains and insufficient coordination by one or few central players that can harness all the individual interests and skills.Governmental support:There is potential for clearer governmental endorsement of and support to specific green hydrogen projects,e.g.,by recognizing selected projects as strategic“Projects of National Interest”and/or by strategically aligning updates of the Plan de Ordenamiento Fsico Portuario y Ambiental(POFPA)with the national hydrogen economy.2 Regulation General:As of today,Colombia lacks an adequate policy and regulatory framework for the safe production,storage,supply,and export of green hydrogen-based fuels in Colombia(as a fuel,not as a feedstock).Ports:Colombias port regulation misses,so far,the recognition of hydrogen-based fuels as a distinct shipping fuel for bunkering.Winds,Waters,and Watts:How Colombias Ports Can Fuel a Green Hydrogen Economy41AxisMain challenges or gaps identified3 Value chain Choice of molecule type:Uncertainty remains regarding the best type of green molecules(e.g.,ammonia or methanol)to be produced at each port location.This primarily depends on commercial(e.g.,future sales prices to be achieved)and technical(e.g.,availability of biomass)considerations.Land availability:Further analysis is warranted on how much and what kind of land is effectively available at each port location,given the enormous physical footprints required by the renewable power production infrastructure foreseen(particularly where producing green ammonia is planned).Port infrastructure:There is little knowledge yet whether new,specialized port infrastructure for green hydrogen-based fuels may be needed or what existing port infrastructure(e.g.,currently used for other fuels or chemicals)could be retrofitted and reused.Shared infrastructure:There is a need for further studies on enabling infrastructure that could be strategically shared by multiple projects(e.g.,port infrastructure,desalination plants,pipelines,transmission lines,etc.)to minimize the overall cost of green hydrogen-based fuels.Skills and training:Managing large-scale projects for green hydrogen,ammonia,or methanol will require new skills in the workforce.Thus,there will be demand for new skilled labor,which Colombias labor market may not be able to fully satisfy yet.This could be addressed through training programs in preparation for more specialized labor at the national level.4 Market International market development:Colombia needs to strengthen its strategic engagement and advocacy in key export markets and in some international fora(e.g.,at the International Maritime Organization)to foster the emergence of a global market for green hydrogen-based fuels.Port infrastructure:Colombian ports lack adequate infrastructure to accommodate ships bunkering,carrying,and/or transferring hydrogen-based fuels.Market research:More public studies are needed to gauge the demand by specific sectors
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Dutch Off shore Wind Innovation GuideYour guide to Dutch off shore wind policy,technologies and innovationsIssue 2025Dutch Offshore Wind Innovation GuideYour guide to Dutch offshore wind policy,technologies and innovationsIssue 20252Dutch Offshore Wind Innovation Guide2Dutch Offshore Wind Innovation GuideContentsDutch design&know-how in offshore wind 51.Harnessing the wind 61.1 Global overview 81.2 Policy development in the Netherlands 91.3 Roadmap 2023 results 91.4 Evaluation Roadmap 2023 121.5 Roadmap 21 GW 131.6 Latest tender 152.Wind&water works 162.1 An experienced Dutch supply chain 182.2 One-stop information Portal 182.3 Founding fathers of wind&water works 193.Feasibility,design&development 203.1 Development and project management 223.2 Environmental impact assessments 233.3 Site investigations 234.Construction&Engineering 244.1 Turbine component supply,engineering 264.2 Turbine foundation supply 264.3 Sealing,corrosion protection 274.4 Subsea cables 274.5 Substation platforms 285.Transport&Installation 305.1 Turbine and foundation installation 325.2 Substation installation 345.3 Cable laying 355.4 Installation tools 365.5 Vessel design,ship building,deck equipment 396.Operations&Maintenance 426.1 Operations 446.2 Maintenance 446.3 Inspections,repairs 466.4 Port development,logistics 463 37.Dutch offshore wind innovators 497.1 Dutch R&D actors 507.2 Low cost piling innovations 507.3 Low noise piling innovations 527.4 Balance of Plant innovations 548.Dutch Floating WindInnovators 568.1 Floating wind turbine innovations 588.2 Floating wind foundation innovations 599.Offshore Wind Ecology Innovators 609.1 Introduction 629.2 Borssele,site V 629.3 Hollandse Kust Zuid 629.4 Hollandse Kust West,site VI 639.5 IJmuiden Ver,site Alpha 6510.Offshore solar innovators 6610.1 Introduction 6810.2 Hollandse Kust Noord 6810.3 Hollandse Kust West,site VII 7010.4 IJmuiden Ver,site Beta 7111.Offshore wind to hydrogen innovators 7211.1 Introduction 7411.2 Hollandse Kust Noord 7411.3 Hollandse Kust West,site VII 7611.4 IJmuiden Ver,site Beta 7811.5 Innovation in Offshore electrolysis 7812.Wind&water works business partners 8012.1 Wind farm development 8212.2 Wind Turbines 8912.3 Foundations 9312.4 Substations,subsea cables 9912.5 Transport and Installation 10512.6 Operations&Maintenance 11912.7 Port Logistics 13112.8 Offshore Solar 13212.9 Offshore hydrogen 133Colofon 136Thanks to rapid technological advances which have greatly reduced costs,offshore wind has become a mainstream source of renewable energy around the world.In the Netherlands it is expected that in 2030 75%of our electricity supply will be generated by offshore wind(required capacity of 21 GW).In a growing number of countries,offshore wind has become a key element of national plans to reduce the carbon intensity of their energy supplies at a competitive price.Experience in the Netherlands has shown that governments need to be proactive in order to successfully achieve affordable,large-scale offshore wind capacity,and reap the socioeconomic benefits this industry offers.Thanks to clear policy and continuous innovation,the cost of offshore wind power in the Netherlands has fallen to the point where zero-subsidy bids are now submitted in competitive tenders.Experiences with the Dutch policy framework and accumulated sector expertise is worth sharing internationally,especially in order to multiply the effects of international know-how in developing new offshore wind markets.It is therefore my pleasure to present you with the 2025 edition of the Dutch Offshore Wind Innovation Guide.In this annual flagship publication,public and private partners in the wind&water works campaign provide you with comprehensive overviews of the Dutch regulatory framework and Dutch supply industries for offshore wind.The guide also highlights Dutch breakthrough innovations in offshore wind technologies and offshore wind-to-hydrogen development.The guide also includes press articles showcasing recent export successes of Dutch companies.Last but not least,I am proud to recommend the wind&water works partners.All have their own unique expertise and experience,and are keen to help solve the challenges of the offshore energy transition.You will find their contact details in the business directory of this guide.I hope this guide will be instrumental to foster collaboration between international off-shore wind ecosystems across the world to accelerate further innovations and technological advances required to meet our economic needs and climate ambitions at the same time.I am confident this guide will prove valuable for other governments building their offshore wind sectors,as well as for international developers and businesses looking to identify new cost-reducing technologies and services in offshore wind.Anne Le GuellecDirector International Enterprise DepartmentMinistry of Foreign Affairs of the Kingdom of the NetherlandsDutch design&know-how in offshore windMore info on:5The Paris Climate Change Agreement,to which all countries in the world are signatories,seeks to maintain global warming at well below 2C,and much closer to 1.5C,above pre-industrial levels.To achieve this ambition,a vast expansion of renewable energy deployment is required on a global scale.Offshore wind will become the main renewable energy source(RES)that is commercially deployable with vast untapped potential in the worlds seas.Offshore wind has a higher capacity and more consistent output than any other variable RES,with the International Energy Agency describing it as a unique variable baseload technology that could help to integrate the decarbonised energy systems of the future.Governments around the world recognise the role offshore windtechnology can play in kick-starting energy transition through large-scale investment,creating jobs and bringing economic development to coastal communities.1.Harnessing the wind6Dutch Offshore Wind Innovation Guide71.1 Global overviewAs countries in coastal regions continue to utilise their offshore wind potential,the Global Wind Energy Council(GWEC)saw the offshore wind market enjoying its second best ever year in 2023.According to its Global Offshore Wind Report 2024,a total of 10.8 GW of new installations were added to global offshore wind capacity,bringing cumulative capacity to 75.2 GW.Still,GWEC labelled 2023 as a turbulent year for the offshore wind industry on both sides of the Atlantic Ocean.Challenges such as inflation,increased capital costs,and supply chain constraints created uncertainty in the sector.Despite the headwinds experienced in 2023,governments and developers remain committed to developing offshore wind and the global offshore wind market outlook in the medium term remains promising.Asia-Pacific(APAC)China led the world in annual offshore wind developments for the sixth year in a row with 6.3 GW added in 2023,demonstrating its capability to maintain stable growth inthe new era of grid parity.Three other markets commissioned new offshore wind capacity in Asia last year:Taiwan(692 MW),Japan(140 MW),and South Korea(4.2 MW),according to GWEC.EuropeGWEC noted a record year for Europe in 2023,with 3.8 GW of new offshore wind capacity from 11 wind farms commissioned across seven markets accounting for most of the new capacity.The Netherlands commissioned 1.9GW of offshore wind capacity in 2023,making it the regions largest market in terms of new additions,followed by the UK(833 MW),France(360 MW),Denmark(344 MW),Germany(257 MW),Norway(35 MW),and Spain(2 MW).United StatesIn North America,offshore wind turbines were installed attwo utility-scale offshore wind projects in the US beforethe end of last year,but no offshore turbines werecommissioned in 2023.North America had 42 MW ofoffshore wind in operation at the end of last year,with allinstallations located in the US,according to GWEC.8Dutch Offshore Wind Innovation Guide1.2 Policy development in the NetherlandsToday,the Netherlands is the third-largest offshore wind market in Europe with 4.7 GW of offshore wind capacity in operation.To come to this position,however,the Dutch had to overcome significant challenges.As with other countries,the potential offshore wind offers had long been recognised in the Netherlands.Even so,up to 2013,only afew offshore wind farms were actually in development orin operation in the Dutch Economic Zone of the North Sea,due to a passive and reluctant policy approach.For example,project developers were responsible for projects with no guarantee projects would be approved.Asa result,project developers faced high costs and risks before they could even apply for a subsidy.Indeed,out of 80 initial applications,just four offshore wind farms with a combined capacity of less than 1 GW were actually built in the Dutch Economic Zone of the North Sea by that time.Shift to a more proactive and supportive approachHowever,in 2013,conditions for offshore wind development changed significantly when a broad coalition of the Government,employers associations,trade unions,environmental protection organisations and energy companies,accelerated climate ambitions and agreed to kick-off the Dutch energy transition.The resulting Energy Agreement for Sustainable Growth(hereinafter:Energy Agreement)included ambitious provisions on energy conservation and targets to raise renewable shares in the energy mix to 16%by 2023.In response to the Energy Agreement,the Government introduced a more proactive and supportive regulatory approach through the implementation of a one-stop-shop approach for offshore wind development.State agencies took responsibility for offshore wind farm site selection and surveys,project requirements,tenders,environmental impact assessments,site decisions and more.In addition,TenneT developed the offshore grid.This enabled project developers to focus successfully on optimisation of wind farm designs and construction methods.Thanks to this new approach,pre-bid costs and associated risks have reduced and coordination between government entities has improved.Last but not least,timeframes for developing offshore wind farms have reduced significantly.Main actors under the Dutch one-stop shop approachFor governance under the one-stop shop approach,roles were designated to the Ministry of Climate Policy and Green Growth the Ministry of Infrastructure andWater Management(Min I&W)and Transmission System Operator(TSO)Tennet.Their roles are briefly explained below.1.The Ministry of Climate Policy and Green Growth The Ministry of Climate Policy and Green growth plans the multi-annual rollout of future offshore wind farms(roadmaps)and decides on the type of tenders(auction design).Its Netherlands Enterprise Agency(RVO)prepares and issues the permit,is responsible for conducting site studies,serves as the coordinator for the offshore wind tenders and is in charge of the publication of the tenders.2.Ministry of Infrastructure and Water Management The Ministry of Infrastructure and Water Management(Min I&W)allocates areas for future wind farms together with the Ministry of Climate Policy and Green Growth.Rijkswaterstaat(RWS)is in charge of conducting the Environmental Impact Assessments(EIA)and preparing the wind farm site decisions(site localizations,permit conditions).3.Tennet TSO TenneT has been legally appointed by the Ministry of Economic Affairs and Climate Policy as responsible forthe offshore grid network,enabling state-owned connections between offshore wind farms and the onshore network.Tender winners receive the permit tobuild and operate an offshore wind farm and access to the offshore and onshore grid network.1.3 Roadmap 2023 resultsAs planned under the National Energy Agreement(2013),in 2015,the Dutch Government published the first Offshore Wind Energy Roadmap,aimed at adding 3.5 GW of new offshore wind power capacity by 2023.The Roadmap 2023 outlined plans for four large-scale project sites across three designated Wind Farm Zones(Borssele,Hollandse Kust zuid and Hollandse Kust noord),all to be tendered between 2016 and 2019 and potentially taking the total Dutch offshore wind capacity up to 4.5 GW in 2023.Under the Offshore Wind Energy Roadmap 2023,successful tenders in three designated offshore wind zones have been completed.These are:Borssele(Sites I&II,III&IV,and V)between 2016 and 2018,Hollandse Kust(zuid)in 2018 and 2019 and Hollandse Kust(noord)V in 2020.These offshore wind farm project sites and their tender specifics are presented in more detail.2016:Borssele sites I-II(752 MW)In 2016,the first tenders under Roadmap 2023 concerned Borssele Wind Farm Zone(BWFZ)sites I and II,further referred to as Borssele I and II,located some 55 kilometres from the Port of Vlissingen.The tender system was legally based onan electricity cost price auction under the Stimulation of the Sustainable Energy Production(SDE )support scheme,which uses competitive auctions to award operational subsidies to renewable energy projects.910Dutch Offshore Wind Innovation GuideIn this system the permit to build and operate an offshore wind farm will be awarded to the competing project developer that offered the lowest electricity price per MWh(strike price)for operational subsidy support(sliding feed-in premium)at times of low energy prices for fossil energy,over a maximum period of 15 years.There was fierce international competition in the public tender to secure the permit and associated subsidy to build and operate Borssele I and II(38 bids).This resulted in achieving a far lower than the anticipated price(max.12.4 Euro cents per kilowatt hour),making the project the cheapest worldwide at the time.The permit and accompanying subsidy for the Borssele I&II was won by rsted,based on a winning bid of 7.27 Euro cents per kilowatt hour.The offshore windfarm,comprising 94Siemens Gamesa 8 MW turbines,supplied power for the first time through TenneTs offshore grid in November 2020 and was officially commissioned in September 2021.Currently,Norges Bank Investment Management(NBIM)is 50%co-owner of the wind farms at Borssele I&II.2016:Borssele sites III-IV(731,5 MW)Also in 2016,the Blauwwind consortium comprising Partners Group(45%),Shell(20%),Diamond Generation Europe(full subsidiary of Mitsubishi Corporation,15%),Eneco Group(10%)and Van Oord(10%,also being the Balance of Plant(BoP)contractor)won the permit and subsidy to build and operate Borssele III&IV,featuring 77Vestas 9.5 MW turbines,with a winning bid of 5.45 Euro cents per kilowatt hour.With Borssele III&IV,the subsidy savings were even higher than for the Borssele I&II projects which,at the time,was set to be the worlds cheapest offshore wind farm.The offshore wind farm at Borssele III&IV was constructed and operated with a subsidy of just 0.3 billion,meaning it can potentially be operated without subsidy after 7.5 years.The originally anticipated subsidy was 5 billion.The final wind turbine at Borssele III&IV was installed in November 2020.Borssele III&IV will produce around 3 TWh of electricity per year,enough to power the equivalent of 825,000 Dutch households,or to meet up to 2.3 per cent of total Dutch electricity demand.Today,Borsseles III and IV shareholder group includes Shell,Eneco,INPEX,Luxcara,Swiss Life Asset Managers,Nuveen Infrastructure and Octopus Energy Generation.New auction type:comparative assessmentDue to the strong interest and competition for the BWFZ tenders,strike prices dropped rapidly.So much so that tenders for the remaining zones under Roadmap 2023 Hollandse Kust(zuid)and Hollandse Kust(noord)were expected to become subsidy free and could be based on another auction type,namely a differentiated comparative assessment,instead.A new legal tender model was introduced to allow subsidy-free licensing.In this model,zero subsidy bids were evaluated on their qualitative merits regarding identification and mitigation of revenue,construction and operational risks.In this new tender model,the permit will be granted to the offer with the highest score in the ranking assessment.2018/2019:Hollandse Kust Zuid(2 x 760MW)In 2018 and 2019,Vattenfall won both tenders for building and operating the wind farms at Hollandse Kust(zuid)Wind Farm Zone(HKZWFZ)sites I-IV,further referred to as Hollandse Kust Zuid,some 18-35 kilometres off the Dutch coast,in the area between The Hague and Zandvoort.The combined Hollandse Kust Zuid project marks two major milestones for the offshore wind industry.Firstly,these will be the first wind turbines ever to be installed on a subsidy-free offshore wind farm,as Vattenfall is constructing the combined project without financial support from the Dutch Government.Secondly,as a combined project,this will be the largest offshore wind farm in operation in the world in 2023,able to produce enough green energy to power 1.5 million Dutch households a year.Thirdly,the 139monopile foundations are designed so they do notrequire transition pieces.This design allows faster installation and cost reductions.Last but not least,it is worth mentioning that Vattenfall and France-based Air Liquide have signed power purchase agreements(PPA)covering 115 MW of capacity of the 1.5GW Hollandse Kust Zuid.Contracted over a 15-year period beginning in 2025 and 2026,the PPA will bring the overall renewable power capacity available to Air Liquide to around 230 MW.The 1.5 GW Hollandse Kust Zuid,operating 139 Siemens Gamesa SG 11 MW wind turbines since September 2023,is now co-owned by Vattenfall,BASF,and Allianz.2020:Hollandse Kust Noord(759 MW)In 2020,the CrossWind consortium a joint venture between Shell(80%)and Eneco(20%)won the tender to build and operate the fifth and last offshore wind farm under Roadmap 2023.The Hollandse Kust(noord)Wind Farm Zone(HKNWFZ)site V,further referred to as Hollandse Kust Noord,is located 18.5 kilometres from the coast of Egmond aan Zee in the Netherlands.With an installed capacity of 760 MW,the consortium plans to have the Hollandse Kust Noord project operational by the end of 2023.Comprising 69 Siemens Gamesa 11 MW turbines,it will generate at least 3.3 TWh per year,or enough to meet 2.8 per cent of current electricity demand in theNetherlands.11Similar to the Hollandse Kust Zuid wind farms,the monopiles in the Hollandse Kust Noord are also of a TP less type,which means they are designed to not require transition pieces,enabling faster installation and cost reductions.As well as building and operating the wind farm,the CrossWind consortium isalso deploying a series of innovations such as the installation and operation of a 0.5MWp(megawatt-peak)offshore solar park inside the Hollandse Kust Noord wind farm.With offshore solar panels situated in between the offshore wind turbines,it will be possible to also produce energy on sunny but less windy days,thereby increasing the utilisation of the offshore power grid infrastructure.This isset to be the first offshore solar farm in the world to be installed,connected and operated within a wind park in high wave conditions.Theoffshore solar park will be provided by Dutch supplier Oceans of Energy in 2025,while the Hollandse Kust Noord wind farm is in operation since December 2023.Another innovation is the introduction of the Baseload Power Hub,an integrated fuel cell system to convert excess wind energy to green hydrogen through an electrolyser and store it as green hydrogen that can be converted to electricity(via a fuel cell)when needed.It will also include battery storage for shorter-term power storage.The system will include a containerised fuel cell power solution with a peak power capacity of 1 MW to regenerate stable and dispatchable power.The Baseload Power Hub aims to reduce the problem of the variable character of renewable energy production(as the wind does not blow at all times).It will store energy and release it when demand exceeds the wind farms output.Once installed,this will be the global first offshore combination of battery storage and round-trip hydrogen integrated in an offshore wind farm.Furthermore,CrossWind partner Shell has also started working on a large-scale hydrogen project in the port of Rotterdam.This involves a 200 MW electrolysis plant to convert excess electricity produced at Hollandse Kust Noord site V to green hydrogen.The plant for the project,named Hydrogen Holland I,is said to become Europes largest renewable hydrogen plant once operational in 2025.The electrolysis plant will be constructed on the Tweede Maasvlakte in the Port of Rotterdam and will produce up to60,000 kilogrammes of renewable hydrogen per day.The hydrogen is planned to be transported through the HyTransPort pipeline,which will form part of theNetherlands hydrogen infrastructure.With a length of about 40 kilometres,it will run from the plant to Shells Energy and Chemicals Park Rotterdam,where it will replace some of the grey hydrogen usage in the refinery.Power Purchase Agreement(PPA)includedIn February 2024,Google has signed corporate power purchase agreements(CPPAs)with Shell and Eneco for 478MW of energy capacity at two offshore wind farms the partners jointly own in the Netherlands:Hollandse Kust Noord and Hollandse Kust West VI.Together with the existing power purchase agreements Google previously signed in the Netherlands,the two offshore wind farms will help the companys Dutch data centres and offices reach more than 90 per cent carbon-free energy in 2024.1.4 Evaluation Roadmap 2023Looking back at the results of Roadmap 2023,it is safe to conclude that the Energy Agreement in 2013 proved to be a game changer for the development of offshore wind in the Netherlands.Under older policy up to 2013,there was little activity in offshore wind,with just under 1 GW installed in total.With todays more proactive and supportive policy approach,a legal framework has been introduced and a total of 3.5 GW was successfully tendered between 2016 and 2019.This resulted in a cumulative installed Dutch offshore wind capacity of more than 4.5 GW(4.7 GW)by end 2023.The cost of wind energy has also gone down substantially faster than targeted.In the 2013 Energy Agreement,cost reduction was initially targeted at 40%by2020,compared to price levels in 2010.The target price for 2020 was set to 100/MWh.However,in 2016 the price level for Borssele I and II was already substantially lower than the 2020 target.The tenders for sites in the Hollandse Kust Zuid and Hollandse Kust Noord resulted in bids without the need for subsidy,taking into account that grid connection is publicly funded.In an evaluation theindependent Netherlands Court of Audit found that thecosts for offshore have dropped more than 70%by2018,compared to the reference price calculated in 2013(15 cents/kWh)by Energy Research Center of the Netherlands.It illustrates the importance of a strong public-private process guided by the Government,whilst setting parameters for the pace at which proposed new capacity is developed,the maximum capacity of the wind farms,planning and zoning,site investigations and,last but not least,grid connection.By regulating all conditions for the construction of the wind farms,the Dutch Government reduces project risk,financing and societal costs.Blueprint for other countriesInternational project developers generally acknowledge the introduction of non-price criteria in the tender system as a model for other countries tenders.Involving system integration and integrating ecological innovation into the bid concept is a driving force for developers as well,in terms of looking at how to develop future offshore wind farms in the rest of the world.12Dutch Offshore Wind Innovation Guide1.5 Roadmap 21 GWEncouraged by the successful rollout of the first Roadmap,the Government accelerated its offshore wind ambitions for 2030.Initially,in 2018,a new target of 11,5 GW installed offshore wind capacity by 2030 was set and a second Roadmap was released,including new Wind Farm Zones Hollandse Kust(west)(1.4 GW)and IJmuiden Ver Alpha andBeta(4 GW).However,due to increased EU climate ambitions and in respons to and the subsequent REPowerEU call,the Government decided to further raise the countrys offshore wind ambition from 11.5 GW to 21GW of operating offshore wind capacity,equivalent to around 75 per cent of the countrys current electricity consumption.The current Roadmap 21 GW includes new zones for offshore wind development,in particular IJmuiden Ver Gamma with a capacity of 2 GW,Nederwiek(zuid)I(2 GW),Nederwiek(noord)II(2 GW),Nederwiek(noord)III(2 GW),Hollandse Kust(west)VIII(700 MW),Doordewind I(2 GW)and Doordewind II(2 GW).Due to amongst others longer lead times for grid connections,and pressures on the supply chain,the Roadmap 21 GW is now expected to be completed by 2032.New auction type:comparative assessment with financial bidUnder the Roadmap 21 GW,the winners of the tenders will also be selected based on ranking criteria in a comparative assessment.The assurance of the wind farm construction/operation and the contribution of the wind farm to the national energy mix are considered as the standard criteria.Additional criteria such as the impact on nature,aquaculture,fishery,safety,or shipping issues can be added,depending on the priorities set by the Government for a given site.A new auction element however is the option for the government to include a financial bid for the right to build a wind farm in the ranking criteria.The financial revenue will be returned to the Dutch society to support the affordability of the energy transition.Another new financial tender element was that the costs for the site studies and environmental impact assessments are to be passed on to the winner of the tender.To prevent prohibited state aid in the form of avoided costs for studies made in preparing the permit(Wind Farm Site Decision),these costs are charged to the permit holder.These costs are therefore separate from the structural integration costs and the financial bid.2022:Hollandse Kust West,site VI(760 MW)Ecowende,a joint venture of currently Shell(60%),Eneco(10%)and Japanese energy utility Chubu(30%),won the permit for the construction and operation of the 756 MW Hollandse Kust(west)Wind Farm Zone(HKWWFZ)site VI,further referred to as Hollandse Kust West site VI.Ecowende will construct and operate the 52 Vestas 15 MW wind turbines without subsidy,but instead pay the maximum financial offer of 50 million.Together with the costs for the environmental impact assessments and location studies that are being paid by Ecowende,the financial return for the Government is about 63.5 million.As already mentioned,for the Hollandse Kust West site VI,limiting ecological impact was the main non-price criterion in the assessment of the applications for the permit.The winning design of Ecowendes offshore wind farm will be nature-inclusive,including a section where wind turbines are widely spaced so birds can fly between them safely.Furthermore,various piling techniques will be used to measure and minimise the impact on marine habitats and marine biodiversity willbe fostered by placing reef structures on the seabed.The Hollandse Kust West site VI project is expected to be commissioned in 2026 and will be built more than 50 kilometres off the Dutch coast in the North Sea near IJmuiden.The offshore wind farm will produce enough electricity to meet approximately 3 per cent of the Dutch electricity demand annually,which is enough to meet the needs of one million households.PPAs includedIn December 2023,Eneco signed a long-term power purchase agreement(PPA)with Dutch supermarket giant Albert Heijn to supply the company with power from the 760 MW Ecowende offshore wind farm in the Netherlands.The 15-year PPA will help the supermarket chain to meet half of its power needs from 2027.In February 2024,Google also signed a corporate power purchase agreement(CPPA)with Shell and Eneco for approx.240 MW of energy capacity at Hollandse Kust WestVI.Together with the existing power purchase agreements Google previously signed in the Netherlands,the two offshore wind farms will help the companys Dutch data centres and offices reach more than 90 per cent carbon-free energy in 2024.In July 2024,two other Dutch companies,both operating in the food and agro industries,Plukon and De Heus,have decided to buy electricity from Ecowende.Last in line,in September 2024,international chemical company LyondellBasell has agreed to purchase a portion of sustainable electricity generated by the Ecowende wind farm in the Dutch North Sea.The chemical company will get some three per cent of Ecowendes total capacity of 760 MW for the next 15 years from 2027 onwards.This amounts to around 103 gigawatt hours of green wind power per year and is equal to the annual electricity consumption of approximately 28,500 European homes.2022:Hollandse Kust West,site VII(760 MW)Oranje Wind Power II,a project company of Germany-based developer RWE,won the permit for the construction and operation of the 760 MW Hollandse Kust(west)Wind farm Zone(HKWWFZ)site VII,further briefly referred to as Hollandse Kust West site VII.Apart from the financial offer of 50 million,Oranje Wind Power II performed best in the non-price comparative assessment on system 1314Dutch Offshore Wind Innovation Guideintegration,partly through its promise to convert surplus electricity into green hydrogen through a600 MW onshore electrolyser.RWE also joined forces with Dutch floating solar energy supplier Solar Duck to incorporate floating solar panels with integrated storage toallow more efficient use of North Sea space as part of thecompanys bid for the Hollandse Kust West site VII.RWE will also introduce flexible demand solutions in the project,such as battery storage for surplus electricity.The battery system,which will have an installed power capacity of 35 MW and a storage capacity of 41 MWh,will consist of a total of 110 lithium-ion battery racks that will be installed at RWEs biomass plant in Eemshaven and will be virtually coupled with RWEs power plants in the Netherlands.The battery project is an important step to optimally integrate the weather-related fluctuating offshore wind power generation of the OranjeWind offshore wind farm into the Dutch energy system.Since July 2024,TotalEnergies has a 50 per cent stake in RWEs OranjeWind offshore wind farm in the Netherlands.1.6 Latest tender2024:IJmuiden Ver,sites Alpha,Beta(2 x 2 GW)Following the successful auctioning of the Hollandse Kust West tenders,the sites in the IJmuiden Ver Wind Farm Zone,located 62 kilometres off the west coast of the Netherlands in the Dutch North Sea,were the latest to be issued for tender.Tospeed up the rollout in order to meet the ambitious climate targets and enable economies of scale for the offshore wind business community the Government has decided to tender two large scale sites,named Alpha(2GW)and Beta(2 GW).Both2 GW sites were auctioned in a combined tender in the first half of 2024,making it the largest tender ever organised in theNetherlands.Tennet TSO will build three DC grid connections in the area,with three platforms that will have a 2 GW direct current connection to a land station.These are the first offshore wind farms in the Netherlands tobe connected with a direct current connection.The third 2 GW site in the 6 GW IJmuiden Ver Wind Farm Zone,named Gamma,is expected to be put out to tender in 2025.Auction typeSimilar to the previous Hollandse Kust West tenders,the tenders for IJmuiden Ver Alpha and Beta were also based on a comparative assessment,including the option for competing developers to add a financial bid.And again the vast majority of ranking points(85%)were to be awarded to a predefined set of standard non-price criteria(i.e.assurance of wind farm construction and operation,contribution to the national energy mix,circularity and IRBC)and site-specific non-price priorities(i.e.ecology enhancement and system integration).Only a limited maximum of points(15%)could be awarded to an additional financial bid,when included in the tender applications.IJmuiden Ver,site Alpha(2 GW)Noordzeker,a consortium comprising SSE Renewables,Dutch pension fund ABP and its asset manager AGP wonthe development permits for the construction and operation of the IJmuiden Ver Alpha offshore wind site.In response to the main site-specific requirement,the contribution of the wind farm to the ecosystem of the Dutch North Sea,proposed several nature-positive measures,including abird protection solution and artificial reefs for marine wildlife.Noordzekers plan includes turbine and wind farmdesigns that contribute to the protection of birds.The winning bid of Noordzeker also included the design of the Alpha wind farm as a“living laboratory”inwhich more than 75 per cent of the wind turbines in the wind farm will have artificial reefs for muscles and other maritime animals.As part of the financial bid,Noordzeker will pay EUR 1 million a year for a period of 40 years,to the Dutch Government for the rights to build and operate the wind farms.The developer will also reimburse the costs for the environmental impact assessments and the offshore site characterisation studies(approximately EUR 40 million in total).The IJmuiden Ver Alpha wind farm is expected to be commissioned in 2029 and will produce enough electricity annually to meet the needs of two million Dutch households.IJmuiden Ver,site Beta(2 GW)Zeevonk,a joint venture between Vattenfall and Copenhagen Infrastructure Partners(CIP),has been awarded the development permits for the IJmuiden Ver Beta offshore wind site.In response to the main site specific tender requirements for the Beta site,integration of the wind farm into the Dutch energy system and protection of the harbor porpoise during installation,the Zeevonk consortium will house an offshore wind farm which will be integrated with a 50 MWp floating solar plant offshore and a large-scale electrolyser at the Maasvlakte in the Port of Rotterdam to produce hydrogen using the electricity generated at IJmuiden Ver Beta.The electrolyser will have a capacity of 1 GW and,since the electrolyser will be built near the location where the offshore wind farm will be connected to the system on land,the electricity does not have to enter the national power grid first,which relieves pressure on the power grid.The plan also details measures to significantly reduce disturbance to marine mammals during construction of the wind farm.The Zeevonk joint venture also made a financial offer of EUR 20 million per year for 40 years and will also pay the costs of the environmental impact assessments and location studies of approximately EUR 20 million.Similar toIJmuiden Ver Alpha,the IJmuiden Ver Beta wind farm wind farm is expected to be commissioned in 2029 and willproduce enough electricity annually to meet the needsof two million Dutch households.15The Dutch have a strong offshore supply chain from decades of supporting the maritime and oil and gas industries.Whereas other European countries have strong skills as project developers or wind turbine manufacturers,the Dutch play an important role in many phases of the offshore wind farm lifecycle,with a particularly strong track record in all activities related to offshore transport and installation.To strengthen international awareness of the solutions and innovative competences of Dutch businesses within offshore wind energy,the wind industry and the Netherlands Enterprise Agency(RVO)operate under a common brand name,wind&water works.This chapter introduces the wind&water works campaign as the main gateway for international stakeholders to learn more about the Dutch industry offerings to offshore wind.The subsequent chapters will elaborate on the Dutch supply chain and showcase some of their recent export successes in international target markets.The official partners of wind&water works are presented in the business catalogue in this Guide.2.Wind&water works16Dutch Offshore Wind Innovation Guide172.1 An experienced Dutch supply chain For centuries,Dutch companies have worked offshore gaining a deep understanding of the specific conditions above and below sea level that can make or break a project.That experience means the Netherlands is home to some of most successful and innovative offshore wind businesses,maritime companies,and research institutes in the world.Our supply chain is a strong one with global reach and its here to help you develop your own offshore wind industry with confidence.In the Netherlands,the Government has taken on the task of developing offshore wind farms in the Dutch North Sea itself.It has introduced a stable policy environment with clear project pipelines.There are flexible rules and regulations in place.High quality site data is provided by the Netherlands Enterprise Agency to prospective developers of designated wind farm sites.Transmission system operator,TenneT,is responsible for all grid connection infrastructure.Meantime,Rijkswaterstaat grants consents for wind farm sites and monitors environmental impact.This approach provides greater certainty for developers,increases investor confidence,and has been proven to foster innovation and drive down overall costs for offshore wind projects.Combined,this array of Dutch private and public sector expertise can provide international neighbours with the right solutions for offshore wind in different site conditions around the world.We have proven experience working in the global wind industry to support its growth in a proactive,sustainable,and successful way and we are willing to share the lessons learned.Through the wind&water works gateway,our aim is to share this expertise and forge strong international partnerships to ensure the successful development of the offshore wind sector around the world.We are ready,willing,and able to work with you,so lets connect to maximise the full global potential of offshore wind.2.2 One-stop information Portal At the heart of the wind&water works campaign is the one-stop offshore wind information portal:www.windandwaterworks.nl and associated social media channels via#windandwaterworks.Featuring the latest offshore wind news,project showcases and company profiles,the website shares Dutch expertise and provides practical information to help other countries successfully develop their offshore wind markets.Through the wind&water works gateway,Dutch businesses share their expertise and forge strong international partnerships to ensure the successful development of the offshore wind sector around the world.Meanwhile,wind&water works also provides news and updates on export opportunities for Dutch companies hoping to increase their international activities.Dutch presence at international events and trade missions as well as public-private partnerships aimed at enhancing international trade are all featured.Company profiles and business links are also included under the Partners section of the website.More than 60 companies from across the Dutch wind industry have joined wind&water works as a partner already.We will continue to welcome additional partners and add new insights and information across the website as the wind&water works campaign gathers momentum.18Dutch Offshore Wind Innovation Guide2.3 Founding fathers of wind&water works Wind&water works is a public-private partnership between the Dutch Government and leading business associations in offshore wind:Holland Home of Wind Energy(HHWE),the Association of Dutch Suppliers in the Offshore Energy Industry(IRO),Netherlands Maritime Technology(NMT)and the Trade Association for Wind Energy NedZero.The main goal is to inform and establish relations with stakeholders in the international offshore wind community.Through sharing of Dutch knowledge,experience and innovations,the wind&water works stakeholders aim to enhance their international visibility and reinforce their network as part of the international wind community.Holland Home of Wind Energy is an independent exporters association representing the interests of Dutch wind power companies abroad.HHWEs mission is to initiate and support marketing and promotional activities that will positively influence the image of the Dutch wind energy sector on emerging wind energy markets.www.hhwe.euIRO:the Association of Dutch Suppliers in the Offshore Energy Industry is an independent non-profit organization that supports and promotes the interests of Dutch suppliers within the offshore energy industry.www.iro.nlThe Netherlands Maritime Technology trade association represents Dutch shipyards,maritime suppliers and maritime service providers in the fields of(inter)national trade,Innovation and Human Capital.www.maritimetechnology.nlNedzero isthe Dutch sector association working to increase sustainable energy and to accelerate the transition towards a renewable energy supply by spurring businesses and governments to invest in renewable energy.www.nedzero.nl193.Feasibility,design&developmentIn many international markets,especially those without any spatial planning for wind farm zones,the first step for project developers towards a new offshore wind farm is to find the right location.As potential offshore wind farm sites need detailed technical,financial,and environmental assessments,specialists are needed across all stages of the development process.And although only few international offshore wind farm developers,such as Shell,are headquartered in the Netherlands,Dutch companies and knowledge institutes are called upon throughout the world to assess the location and impact of potential offshore wind farms and the subsequent project development.20Dutch Offshore Wind Innovation Guide213.1 Development and project management Although most wind farm utilities develop the initial offshore wind farm concept in-house during the pre-Front End Engineering Design stage(or pre-FEED),many consultancy and project management services are often subcontracted to third parties.Support includes legal advice,financial advice,planning,consenting,engineering consultancy,risk management and logistics.Dutch consultants are internationally renowned at this early stage of project development in terms of consenting and development services and project management.A wide range of services are already provided by Dutch consultants to the development and project management area,such as legal and financial services.In the news 2024 Yooshin,Pondera Performing Consultancy Work for Korean 600 MW Offshore Wind ProjectSource:OffshoreWIND.bizWando Geumil Offshore Wind,the company developing the 600 MW Wando Geumil offshore wind farm in South Korea,whose majority shareholder is KOEN(Korea South-East Power Company),has awarded a contract for operations&maintenance(O&M)strategy consultancy services to Yooshin Engineering Corporation.The consultancy project,which started at the end of last year,includes the classification and definition of O&M services,required technology and equipment,technical manpower planning,benchmarking and handover strategies when going from the EPC to the O&M phase.The Netherlands-based Pondera has teamed up with DWT and OutSmart to carry out the work.For the local vessel acquisition strategy,the renewable offshore brokers from GRS will support Pondera and DWT with a market screening.Pondera,DWT and OutSmart will also dive into training programs for securing technical manpower,the consultancy said.The Wando Geumil offshore wind project is proposed to be built in Wando-Gun,South Jeolla Province,South Korea.The 600 MW offshore wind farm is planned to comprise 40V236-15.0 MW wind turbines for which the developer signed a preferred supplier agreement with Vestas last year.The delivery of the turbines is expected to begin in the fourth quarter of 2025,with commercial operation scheduled for the third quarter of 2026,according to Vestass press release from March 2023.In the news 2024 Ventolines Joins Estonian-Latvian Joint Offshore Wind Project TeamSource:OffshoreWIND.bizThe Dutch company,Ventolines,has won a public tender toconsult the team behind the Estonian-Latvian cross-border offshore wind project,ELWIND,in executing the next practical steps in de-risking the offshore areas.By winning the tender and signing the agreement,Ventolines took the position of technical consultant for the 1 GW ELWIND offshore wind project.The total amount of the contract is EUR 300,000,excluding VAT.According to the agreement,the main responsibility of the Dutch company will be to help the ELWIND team prepare the technical and environmental studies that form a major part of the predevelopment activities Estonia and Latvia are committed to,according to ELWIND.“For the needs of Elwind,the company will provide support in the preparation of procurement documentation for the environmental impact studies,”saidJnis Lomelis,head of the Elwind project department of the Latvian Investment and Development Agency.As part of the environmental impact assessment(EIA),the impact of the wind project on nature,animals,and socio-economic impact,including shipping lanes,will be analysed.Technical studies will also be carried out.Research is expected to start this year and is planned to last until 2026.According to the Investment and Development Agency of Latvia,special attention will be devoted to determining the wind farms potential impact on the national defense capabilities and taking the necessary compensation measures in case the impact is detected.ELWIND is an Estonian-Latvian cross-border offshore wind project for which the countries started discussions in December 2019.The governments of Latvia and Estonia already selected the locations in their respective parts of the Baltic Sea where their joint project will be built.In November 2023,the Latvian Cabinet of Ministers determined that the planned target capacity of the offshore wind farm on the Latvian side of the ELWIND project will be up to 1,000 MW.The tender for the rights to develop the projectis scheduled to be held in 2026.ELWIND is expected to enter the construction phase in 2028 and be commissioned by 2030 at the earliest.22Dutch Offshore Wind Innovation Guide3.2 Environmental impact assessments Offshore wind farm developers have to cross critical path items,such as environmental and social impacts that need to be assessed in terms of public scrutiny and comment,subject to legal challenges.Examples of environmental impact relate to birds,bats,fish,and marine mammals(noise mitigation)during the development process.Other topics relate to aesthetic considerations,decommissioning requirements,and the impact on tourism,fishing,navigation,and transportation that arise in the planning,construction,and operation of an offshore wind project.Environmental surveys establish the distribution,density,diversity,and number of different species such as benthic,birds and marine mammals(acoustic impact during offshore piling).These studies take place early in the development process to provide information for the environmental impact assessment(EIA).3.3 Site investigations During the site selection,developers also call upon specialists to carry out site investigations,including geotechnical and geophysical studies to identify suitable locations for the wind farm and cable routes.These investigations identify seabed topography and locate unexploded ordnance.Further geophysical surveys are often completed post-consent and pre-construction to determine turbine locations,foundation design and cable routes.Environmental studies such as wildlife impact assessments are sometimes combined with the geophysical surveys.Site investigations are required at both the wind farm location and at the proposed onshore and offshore cable route and the onshore substation site.Depending on the survey type,the contract may involve both data collection and analysis,such as geotechnical surveys,or data collection only,where analysis is performed by the developer in-house,for example,meteorological and oceanographic(metocean)data.Geophysical surveys include bathymetric,cable route and unexploded ordnance surveys.These surveys plot the surface topography in support of the wind farm design and installation engineering.In the news 2024Fugro to Gather Metocean Data for rsteds Australian Offshore Wind FarmsSource:offshoreWIND.bizrsted has selected the Dutch geo-data specialist Fugro to carry out a floating LiDAR measurement campaign for its Gippsland offshore wind farms in Australia.For twelve months,Fugros SEAWATCH Wind LiDAR Buoy will measure wind,wave,current,and meteorological parameters to help assess the viability of rsteds wind farms located off Gippsland in Australias state of Victoria.Metocean data will be transferred in real time to give the client early insight into site conditions,followed by monthly reports.“This is a key step in getting our Gippsland project development well and truly underway.By developing a deep understanding of the metocean conditions,we will be able to design a world class project to maximise the amount of green energy and value delivered for Victoria”,said rsted.The SEAWATCH Wind LiDAR Buoy captures high-accuracy measurements of wind speed and direction up to 300 metres above sea level.According to Fugro,the system was the first to gain a Stage3 rating in line with the Carbon Trust roadmap for the commercial acceptance of floating LiDAR technology.rsted was one of the first companies to secure a feasibility licence for offshore wind projects proposed to be built offshore Gippsland.The licences provide the Danish company with site exclusivity to develop the two offshore wind sites.The project sites are located between 56 and 100 kilometres from land off the coast of Gippsland.rsted estimates the cluster has the potential to generate a combined 4.8 GW of renewable energy,which can eventually power the equivalent of four million Australian homes.The potential capacities for the project are 2.8 GW in licence area 1 and 2 GW in licence area 2.234.Construction&EngineeringThe absence of large wind turbine manufacturers does not mean that the Netherlands lacks expertise at this stage of the offshore wind project development.On the contrary,Dutch companies are often involved in producing and improving wind turbine components,such as rotor blades and drive trains,aimed at larger wind turbines and higher capacities.Dutch companies and organizations are known all over the world for their leading position in supply and development of technology to support wind turbine manufacturing.24Dutch Offshore Wind Innovation Guide254.1 Turbine component supply,engineering Wind turbine manufacturers can best be seen as system integrators:designing the overall system and components such as nacelle,rotor and the tower,then assembling the components(mostly at the offshore site),which it may manufacture in-house or source from suppliers externally.4.2 Turbine foundation supply Turbine foundations are one of the main elements of any offshore wind farm,accounting for over one fourth of the total equipment cost.Developers select a foundation type depending on the water depth,seabed conditions,wave and tidal loading,and turbine loading,mass and rotor speed.Monopiles To date,most offshore wind farms have steel monopile foundations,being selected in most of the worldwide offshore wind installations.The main characteristics in favor of monopiles are simplicity(easily standardised design for series manufacturing without the need for high-end 3D cutting and welding technology)and adaptability(more easily adaptable to different installation site characteristics,avoiding the need for a large amount of field data).The most common design has been a cylindrical monopile that is first driven into the seabed,with cylindrical transition piece mounted over it and grouted into position.The purpose of the transition piece is to provide access arrangements(these welded appurtenances would not survive the piling activity)and levelling of the tower base interface.Increasingly large designs,with XL units up to 2.000t or more,are currently being deployed for deeper waters up to 60 70 metres.In the news 2024Equinor,Polenergia Finalise 100-Monopile Order with SifSource:offshorewind.bizNetherlands-headquartered Sif Group has signed the finalcontracts with Polenergia and Equinor for the supply of 100monopiles for the Batyk II and Batyk III offshore wind farms in the Polish Baltic Sea.Manufacturing of the monopiles is scheduled for the second quarter of 2025 with completion in 2026.Sif Holding N.V.said“These are the first projects under theframework agreement we concluded with Equinor in support of the expansion of our manufacturing facilities in Rotterdam.We look forward to cooperate with Equinor and Polenergia and to make these projects a success as ones of the first projects in our new manufacturing set-up.”The agreement marks a final step following the reservation agreement signed by the two parties for the supply of the monopiles in April 2023.The two wind farms of 50 units each will have a total capacity of 1,440 MW and will be located in the Polish exclusive economic zone of the Baltic Sea,about 37 kilometres and 22kilometres from the coastline near Ustka and eba.Recently,the developers of the offshore wind farms also finalised contracts for the supply of wind turbines.Batyk II and Batyk III will feature 100 Siemens Gamesa SG 14-236 DD wind turbines.The offshore wind farms are expected to produce first power as early as 2027 while the commercial stage of their use is planned a year later.In the second phase of the development of the Polish offshore wind sector,Equinor and Polenergia are also implementing the Baltyk I project.An offshore wind farm with a capacity of up to 1,560 MW will be located approximately 80 km from the coast near eba.All three Batyk wind farms will have a total capacity of up to 3 GW,providing green energy to over four million households,according to the developers.26Dutch Offshore Wind Innovation Guide4.3 Sealing,corrosion protectionFoundations for wind turbines and offshore substations require solid steel protection and bolting fixation,as bad sealings and corrosion can cause severe damage that is both expensive and difficult to repair.4.4 Subsea cablesSubsea cables deliver the power from the turbines to the onshore grid.Array cables connect the turbines to an offshore substation from which the power is transmitted to an onshore substation via high voltage(HV)export cables.The array cable technology is well established and has been extensively used in the power and oil and gas industries.To date,array cables have predominantly been medium voltage(MV)and rated at 33 kV.Dutch offshore wind farms will be connected through 66 kV cables,and this is expected to be a rapidly growing market elsewhere over the coming years.Export cables from substation to shore have a significantly higher capacity than array cables,ranging from 132 kV to 245 kV.Export cable installation takes place early in the construction schedule and there are potentially long lead times.It is therefore one of the first Tier 1 contracts placed.Export cables can either be HV alternating current(HVAC)or HV direct current(HVDC).Most export cables to date have been alternating current(AC),but as future projects tend to be further from shore,it is likely to lead to greater use of direct current(DC)systems.In the news 2023Dutch Company Nets Greater Changhua 2b&4 Cable DealSource:offshorewind.bizThe Netherlands-based Twentsche KabelFabriek(TKF)has been awarded a cable supply contract from rsted for the 920 MW Greater Changhua 2b and 4 offshore wind farms in Taiwan.The contract scope includes the supply and termination of close to 200 kilometres of inter-array cables and other cables including accessories and connectors,all operating 66 kV for the Greater Changhua 2b and 4 offshore wind farms.“We are honoured that rsted has selected TKF for its prestigious Greater Changhua project,and we are looking forward supplying green energy to the Taiwanese households through our state-of-the-art inter-array and other cables”,said TKF.The contract announcement follows rsteds final investment decision,taken in March 2023.The wind farms are now under construction and are set to be some of the largest offshore wind projects in Asia Pacific.The Greater Changhua 2b and 4 offshore wind farms will comprise around 65 wind turbines with an individual capacity of 14 MW,installed some 35-60 kilometres off the Changhua coast.LS Cable&System is responsible for the supply of high-voltage subsea for both projects.In 2018,rsted secured 920 MW of grid capacity for the offshore wind farms in Taiwans first competitive price-based auction with no mandatory local content requirements.Two years later,the developer signed a corporate power purchase agreement(CPPA)with Taiwan Semiconductor Manufacturing Company Limited(TSMC)for the offtake of the full production from Changhua 2b and 4.274.5 Substation platformsModern commercial-scale offshore wind farms have at least one offshore substation,incorporating electrical components such as reactive compensation systems,switchgear,transformers,back-up generators and converters where required.HVAC electrical systems have been the most common solution to date.For projects that are built further offshore,however,there is cost benefit in using HVDC systems due to a reduction in electricity losses.Offshore substation electrical systems are mounted on platforms(topsides).Offshore substation platforms are large complex steel structures.A HVAC offshore substation platform weighs up to 2,000t and may include a helipad and emergency accommodation.HVDC substations are much larger,with masses of up to 15,000t.Substation manufacturing is analogous to shipbuilding and offshore oil and gas platform fabrication.Both monopile and jacket foundations have been used to support these.Substation supply can be divided into the supply of electrical systems and the supply of the structures.Electrical systems comprise transformers,reactors switchgear,power electronics,cables within the substation and control and auxiliary systems.Offshore substation structures include the offshore platform and associated structures for access and accommodation,and the substation foundation.Both monopile and jacket foundations have been used to support these.In the news 2024More than 25 Pct of Offshore Wind Platforms in EU Designed by Dutch Engineering CompanySource:offshoreWIND.bizDutch engineering company Iv has designed more than aquarter of all offshore wind platforms in the European Union,the company said on 9 July,citing information froma WindEurope report.Of the 19 GW of offshore wind energy the EU had installed atthe end of 2023,Iv has worked on offshore platforms for around 5 GW of projects.The engineering companys designs can be seen,among others,at offshore grid connection sites for Dutch 1.4 GW Borssele offshore wind farms,the Borssele Alpha and Beta platforms,as well as German offshore grid connections DolWin1 and HelWin2 where Iv delivered the design of the Dolwin Alpha(800 MW)and Helwind Beta(680 MW)platforms.The company is also working on two platforms for TenneTs new grid connections in the North Sea:IJmuiden Ver Beta and IJmuiden Ver Gamma,currently the largest converter platforms in the world,with a capacity of 2 GW each.Iv will also design one of the platforms for a new offshore wind area in the Netherlands,Nederwiek.“Iv is the only engineering company in the Netherlands with this level of experience and expertise,”the company said in a press release on 9 July.Outside the Netherlands,Iv is working on three platforms that will be installed in the German Baltic Sea:Ostwind 3 and Gennaker East and West.The company has also secured a contract for the Thor offshore wind farm in Denmark.And outside the EU,Iv designed the platform for the Sofia offshore wind farm in the UK,which will be installed this year.The Dutch company will also provide the design for 3.4 GW of AC modules for the Princess Elisabeth Energy Island off the coast of Belgium.28Dutch Offshore Wind Innovation Guide295.Transport&InstallationThe Netherlands has a large and internationally renowned offshore services sector.Traditional Dutch offshore oil and gas contractors and dredging companies are now also world leaders in the installation of offshore turbines and foundations.With their strong market position and expanding track record,they offer either transport and installation or Balance of Plant packages,depending on the preference of the developer.In various partnerships and consortia,these companies also focus on faster development,higher efficiency and environmentally friendly installation methods for turbines and foundations.30Dutch Offshore Wind Innovation Guide315.1 Turbine and foundation installationTurbine installation is undertaken by main contractors using jack-up vessels which transport wind farm components from port to site.Recent projects have mostly used vessels which are purpose built for offshore wind.It takes two to three days on average to install a turbine,including transit time,weather downtime and mobilisation/demobilisation time.The turbine installation is undertaken by the original equipment manufacturer(OEM)but the vessel is often contracted by the developer.Turbine installation may well be part of a full balance of plant contract.For foundations,vessels may either transport the structures from port to site and undertake the installation or remain onsite with foundations transported to the site using feeder vessels.Some jack-up vessels are used for both turbine and foundation installation.Others are floating heavy lift vessels,which may be used for substations as in other maritime sectors.For jacket foundations,deck space is the limiting factor for vessel choice,whereas for monopile foundations it is increasingly the crane capacity.It takes about three days to install a monopile and five days on average to install a jacket foundation,including transit time,weather downtime and mobilization/demobilization time.The oil and gas industry is the origin of Dutch expertise in turbine installation.As the offshore wind industry has matured,the vessels used have become increasingly bespoke and many are exclusively used in offshore wind.In the news 2024Heeremas Thialf Soon to Install First He Dreiht Foundations Offshore GermanySource:offshorewind.bizConstruction work has started on one of Germanys largest offshore wind farms,the 960 MW He Dreiht project.In the next few days,Heerema Marine Contractors crane vessel,Thialf,will install the first foundations at EnBWs offshore wind farm,being built in the German North Sea.The He Dreiht offshore wind farm is located approximately 85 kilometres northwest of Borkum and about 110 kilometres west of Helgoland.Heerema Marine Contractors,the company responsible forthe transportation and installation of 64 monopiles andtransition pieces under a contract signed with the developer in April 2022,will install the first foundations in the next few days using its semi-submersible crane vessel(SSCV)Thialf.According to previous information,during the operations,Heerema will use the IHC IQIP double-walled noise mitigation system NMS-10,000 amongst other systems to reduce noise pollution.32Dutch Offshore Wind Innovation GuideIn the news 2024Van Oord to Install WindankerOffshore Wind Turbine Foundations,Inter-Array CablesSource:offshorewind.bizIberdrola has contracted Van Oord for the installation of wind turbine foundations and the supply and installation ofinter-array cables for the Windanker offshore wind farm that the Spanish renewable energy company is building inthe German sector of the Baltic Sea.Under the contract,the Dutch offshore construction specialist will transport and install 21 XL monopiles and transition pieces for the 21 Siemens Gamesa 15 MW wind turbines.Van Oord will also be in charge of the design,supply and installation of the wind farms inter-array cable grid.For the installation of the monopiles,Van Oord will deploy its heavy-lift installation vessel Svanen,which is no stranger to offshore wind construction in the Baltic Sea,having already worked on the Baltic 2,Arkona,Danish Kriegers Flak,and Baltic Eagle offshore wind farms,the latter being also a project by Iberdrola.By the time Svanen is deployed on Iberdrolas third offshore wind farm in the Baltic Sea,the vessel will have undergone amajor upgrade to handle the next-generation monopile foundations.For the installation of 29 kilometres of inter-array cables at the Windanker project site,Van Oord will use its cable-laying vessel(CLV)Nexus,with the trencher Dig-It tasked with burying the cables to the required depth.Windanker is expected to enter full operation by the end of 2026.335.2 Substation installationOffshore substation electrical systems are mounted on platforms.These structures are often similar to offshore oil and gas platforms,as is the installation process,although substations are typically in shallower water.Most topsides have typically been installed with a single lift from a barge.Both sheerleg(two-legged lifting device)and heavy lift vessels can undertake the lift from the barge.Substation foundations may be either jackets or monopiles,and the installation of these may form part of the turbine foundation installation contract and use the same vessels.Current Dutch suppliers are basically the same as those for the turbine and foundation installation.In the news 2024Heerema Seals Transportation and Installation Deal for Polish Offshore Wind FarmsSource:offshorewind.bizHeerema Marine Contractors has been awarded contracts for the transportation and installation of monopiles and transition pieces,as well as offshore substation jackets and topsides for Batyk II and Batyk III offshore wind projects in Poland.The contracts were signed with MFW Baltyk II Sp.z.o.o.and MFW Baltyk III Sp.z.o.o.,each a joint venture project owned 50 per cent by Equinor and 50 per cent by Polenergia.Under the contracts,Heerema Marine Contractors will be responsible for the transportation and installation of 100 monopiles and transition pieces,sourced from European fabrication yards and installed in the Baltic Sea.The monopiles will be provided by the Dutch company Sif,which will also collaborate with its consortium partner Smulders to manufacture the transition pieces.In addition,Heerema will handle the transportation and installation of offshore substation jackets and topsides.For these operations,the company plans to utilise its heavy lift vessel Thialf.According to Heerema,the Thialfs“advanced capabilities and motion compensated gripper frame make it ideally suited for the complex and demanding tasks associated with these large-scale offshore wind projects”.The firm signed reservation and preliminary work agreements with MFW Batyk II and MFW Batyk III for the transport and installation of wind turbine foundations and an offshore substation in April this year.The Batyk II and Batyk III offshore wind farms will each have 50 Siemens Gamesa SG 14-236 DD wind turbines making up for 720 MW of installed capacity per wind farm.The offshore wind farms are expected to produce first power as early as 2027 while the commercial stage of their use is planned a year later.34Dutch Offshore Wind Innovation Guide5.3 Cable layingCable installation can be undertaken either in a single lay and burial process using a plough,or through a separate surface lay and subsequent burial approach using a jetting tool on a remotely operated vehicle(ROV).Installation of array cables is more challenging due to the large number of operations involved,with a pull-in at each foundation.For nearshore installations,shallow-draft barges are often used,whilst large-scale projects further from shore typically use dynamically positioned cable ships.Export cables are typically installed as a single length of cable and thus larger vessels are used with the necessary storage.Unlike turbine and foundation installation,success in the cable installation market is driven as much by technical capability and track record as it is by vessel capability.In the news 2023Boskalis Wins Large Baltica 2 Cabling ContractsSource:offshorewind.bizBoskalis has been awarded contracts by PGE Polska Grupa Energetyczna and rsted for the transportation and installation of the export and array cables for the Baltica 2 offshore wind farm in Poland,classifying the contract value as“large”,which for Boskalis means it is worth more than EUR 300 million.The project scope comprises the transportation and installation of 107 array cables with a total length of more than 150 kilometres in addition to four 275 kV export cables with a total combined length of nearly 300 kilometres.In addition to the laying of the export and array cables,Boskalis will carry out seabed preparation activities including the levelling of the seabed,pre-trenching,and the removal of boulders.Upon completion of the cable installation activities,the Netherlands-headquartered company will protect and stabilise the cable protection systems(CPS)with the placement of rock.Boskalis will deploy two cable-laying vessels,a construction support vessel,a subsea rock installation vessel,and a trailing suction hopper dredger.The cables will be installed in a pre-cut trench using the multi-mode Megalodon plough deployed from Boskalis construction support vessel Falcon.Preparatory works will commence in 2025 and the transport and installation activities are planned to start in 2027.355.4 Installation tools This section covers the lower tier activities which are undertaken in support of the primary(Tier 1)installation contracts.Equipment used during installation includes:Cranes for loading components on the quayside;Sea fastenings and racks for securing components in transit;Foundation piling equipment such as templates,hammers,and handling equipment;Cable installation equipment such as carousels,tensioners,grapnels,trenching and burial tools,and cable retrieval tools;Turbine installation equipment,such as cranes and yokes.Equipment such as cranes and cable-handling equipment may be bought by the installation contractor and permanently installed on the vessel or rented from a supplier.There are some elements of installation equipment that are designed and manufactured based on the needs of the specific projects.Examples include sea fastening equipment,blade racks and pile-handling tools.In the news 2024DEME Takes CAPE Holland Equipment to US for Monopile Installation Offshore VirginiaSource:offshorewind.bizDutch company CAPE Holland has secured a contract with DEME for foundation installation equipment that will be used at the Coastal Virginia Offshore Wind(CVOW)project site in the US.Under the contract,CAPE Holland,part of Venterra Group,has provided its CAPE VLT-640 Quad spread and a separate CAPE VLT-640 unit to the Belgian offshore construction contractor.As reported earlier,DEMEs vessel Orion is en route to theUS from Scotland,where it was deployed for monopile installation on the Moray West offshore wind farm,for which DEME also utilised CAPE Hollands equipment.The monopiles for the 2.6 GW CVOW,set to be the biggest US offshore wind farm and one of the biggest in the world,have a diameter of 8.5 metres and weigh up to 1,500 tonnes.They will be driven through the first layers of the sea floor using the CAPE Vibro Lifting Tool,mitigating the risk of pile run.The monopiles will then be driven to final penetration using an impact hammer.The CAPE VLT-640 Quad system will be accompanied by a separate CAPE VLT-640 unit to facilitate the pile-run-free installation of jacket pin piles forthe wind farms three offshore substations,according toCAPE Holland.The installation equipment provider also said that,in addition to its technical ability,the CAPE Vibro Lifting Technology offered a quieter and more environmentally friendly alternative to traditional pile driving methods.Alongside CAPE Holland,other Venterra Group companies are also involved in the CVOW project,including INSPIRE Environmental which is providing post-construction marine growth monitoring on structures and benthic monitoring on the research project turbines.Dominion Energys 2.6 GW Coastal Virginia Offshore Wind will have 176 Siemens Gamesa 14 MW wind turbines and is expected to be in full operation in 2026.36Dutch Offshore Wind Innovation GuideIn the news 2024TWD,Seatools Outfit Green Jade for Hai Long Piling WorkSource:offshorewind.bizAs construction work has started on Taiwans 1 GW Hai Long offshore wind farm with the vessel Green Jade installing the first jacket foundation pin piles,TWD and Seatools each revealed their contracts for the provision ofpre-piling and piling equipment and services with the vessel owner,CSBC-DEME Wind Engineering(CDWE).The Hai Long joint venture,comprising Northland Power,Yushan Energy,Mitsui&Co.,and Gentari,announced the official start of offshore construction on 11 April and CDWE said on 12 April that Green Jade had already installed pin piles at five locations.On 16 April,the Netherlands-based TWD(Temporary Works Design)informed that the company was responsible for designing most of the pin pile installation equipment on the heavy lift vessel.This includes the design of a subsea self-levelling pre-piling template which is currently the largest and most complex of its kind in the industry,according to TWD.The company also designed the pin pile sea fastening,with three sets of four piles stacked vertically,each with its own upending hinge,and was also involved in the design of sea fastening for the impact hammer.On 17 April,another Dutch company,Seatools announced that it was responsible for the design of the pile templates metrology and control system,including all mechanical,electrical,hydraulic,and software components.Seatools scope covered hydraulic and mechanical systems dedicated to template levelling and precise pile positioning,and an advanced metrology system that ensures that pile installation is achieved with accuracy that meets stringent tolerance requirements,according to the company.As the project uses both a vibro hammer and an impact hammer for pile installation,Seatools performed a detailed evaluation to confirm the equipments structural integrity and operational reliability under the varied loads imposed by both the vibratory and impact methods.The offshore wind farm,being built in the Taiwan Strait around 50 kilometers off Taiwans west coast,will comprise Siemens Gamesa SG 14-222 DD wind turbines and is expected to be operational in 2026.37In the news 2024Offshore Construction Coming Up on 1 GW Hai Long,CAPE Holland to Supply Vibro Lifting ToolsSource:offshorewind.bizThe installation of pin piles for the jacket foundations on Taiwans 1,044 MW Hai Long offshore wind farm is expected to start in March.CAPE Holland has been contracted to supply its CAPE Vibro Lifting Tools to CSBC-DEME Wind Engineering(CDWE),whose vessel Green Jade will be installing the piles.CDWE signed a contract for the transportation and installation of the foundations,turbines,and offshore substations for the three offshore wind farms making up the Hai Long project in 2022.For the pin pile installation,CDWE will deploy its vessel Green Jade,the first offshore heavy lift DP3 installation vessel built in Taiwan,whichdebuted on the Zhong Neng offshore wind farm last year.The Dutch supplier of foundation installation equipment,CAPE Holland,will provide its pile-driving system,for which the company says was designed for efficient and quiet installation of offshore foundations.The Vibro Lifting Technology(VLT)allows for upending and lifting,including the handling of the pre-piling template and pile driving to the required depth.CAPE Holland says its VLT was selected for the installation to mitigate the risk of pile run and to improve installation efficiency by not requiring a separate upending tool.On Hai Long,CDWE will first use CAPE VLT-640 Single for theinstallation of the pin piles and the tool will then be converted to a tandem version for the installation of the foundation piles for the projects offshore substation.The 1,044 MW Hai Long project will comprise two offshore wind farms,532 MW Hai Long 2 and 512 MW Hai Long 3.The project is being developed in three phases as Hai Long 2 has been split into two smaller offshore wind farms,the 300 MW Hai Long 2a and the 232 MW Hai Long 2b.The 1,044 MW Hai Long will have 73 Siemens Gamesa SG 14-222 DD wind turbines,installed on three-legged jacket foundations approximately 45-70 kilometres off the Changhua coast in the Taiwan Strait,in water depth between 41-56 metres.The project,expected to be commissioned in 2025/2026,isowned and developed by Hai Long Offshore Wind,a consortium comprising Northland Power,Yushan Energy,Mitsui&Co.,Ltd.,and Gentari.38Dutch Offshore Wind Innovation Guide5.5 Vessel design,ship building,deck equipmentInstallation vesselsAs already indicated,there are basically two main vessel options for steel foundation installation:a jack-up vessel,mostly used for turbine installation;or a floating vessel,often with components fed using a separate floating vessel.Turbine installation on all existing commercial-scale projects to date has been undertaken by a jack-up vessel,to provide sufficient stability for the nacelle and rotor lifts.Subsea cable installation can be undertaken using either a single lay and burial process with a plough or using a separate surface lay with subsequent burial,using a jetting tool operated from a ROV.Array cable laying is considered a more technically challenging process than export cable-laying due to the large number of operations that are involved and the cable pull-in interface at each foundation.Export cable-laying vessels tend to be larger with cable carousels with a higher capacity to enable a single length of cable to be laid from substation to shore,where possible.Support vessels The sort of support services required during installation includes cable route surveys and clearance,support vessels such as crew transfer and guard vessels,diving,ROV operations,grouting and several marine operations,including vessel modifications,logistics,certification,weather forecasting and planning.Many of these services are delivered by small and medium sized companies.In the news 2023NOV and GustoMSC Tapped for Second Havfram Mega Jack-UpSource:offshorewind.bizNOV has once again signed contracts with CIMC Raffles tosupply a GustoMSC NG-20000X self-propelled wind turbine installation jack-up vessel design for Havframs second vessel on order at the shipyard.The NG-20000X-HF vessels are among the largest wind installation jack-ups in the industry,NOV said.They feature a 3,250-ton heavy lift crane and can install foundations upto3,000 tons and wind turbines with tip heights over 300metres in water depths up to 70 metres.The vessels large carrying capacity is said to reduce the vessel trips required per development,thereby improving project economics,and reducing carbon emissions per installed megawatt.Like the vessel currently under construction under thefirst contract,Havframs second self-propelled jack-up vessel will be equipped with the NOV variable speed drive rack and pinion jacking system,including the latest regenerative power system technology that feeds the generated power back into the vessels system.39In the news 2024Damen to Build Another Methanol-Ready CSOV forTSSMSource:offshorewind.bizThe Netherlands Damen Shipyards has signed a contract with Ta San Shang Marine(TSSM)for the construction of another Damen Commissioning Service Operation Vessel(CSOV)9020,that will deployed on offshore wind farms inTaiwan.The second CSOV will be built in Vietnam,with a delivery date planned for the end of 2026.The 90-metre-long vessel will provide accommodation for up to 120 people on board working on the offshore wind farms during their construction and operational phases.These personnel will reach their workplace via a motion-compensated gangway.The new CSOV will be equipped with a diesel-battery hybrid power generation system and will be fully methanol-ready,said Damen.When the new vessel is delivered,TSSM,a joint venture between Japans Mitsui O.S.K.Lines and Taiwans Ta Tong Marine,will have a fleet of three Service Operation Vessels(SOVs).The first vessel,TSS Pioneer,was delivered in 2022.The second,TSS Cruiser,is a Damen CSOV which was ordered in November 2023 and is scheduled for delivery at the end of 2025.“We are grateful that TSSM has selected Damen once more as the builder of the newest CSOV in their fleet.Last year,we welcomed TSSM into the Damen-family with the CSOV 9020 TSS Cruiser and since then we have further strengthened and intensified our relationship.We look forward to a continued,fruitful,and long relationship with TSSM,”said Damen Shipyards Group.40Dutch Offshore Wind Innovation GuideIn the news 2024Acta Marines New CSOV for French Offshore Wind MarketSource:offshorewind.bizActa Marine,the owner and operator of construction service operations vessels(CSOVs)for the offshore wind industry,will deliver one of its four CSOVs currently being built in Turkey under a French flag.The fourth vessel in Acta Marines fleet currently under construction at Tersan Shipyard,CSOV Acta Pegasus,will flythe French flag,the Dutch company said in June.Acta Pegasus is an Ulstein SX216 design and features an optimised hull form and the ability to use(e-)methanol as the main fuel.The CSOV has a length of 89.9 metres,a beam of 19.2 metres,and can accommodate up to 135 people on board.Itfeatures a walk-to-work motion-compensated gangway,a3D-motion compensated crane for cargo transfer,and it can carry a daughter craft for in-wind farm transfers.“Given our growing position and operations in the French market,we will invest in recruiting and training a team of highly skilled French maritime professionals to operate this state-of-the-art vessel.By employing local talent,we aim to support the French workforce,foster local expertise,and ensure the highest standards of safety,hospitality,and efficiency in our operations,”Acta Marine said in a press release on 24 June.416.Operations&MaintenanceOperations&Maintenance involves providing support during the lifetime of the wind farm to minimize downtime and ensure maximum energy production.Wind farms typically have an operating lifetime of 25 to 40 years.The Dutch have significant expertise across the operations,maintenance and services value chain,with a large variety of main component and equipment suppliers as well as service providers.42Dutch Offshore Wind Innovation Guide436.1 OperationsThe day-to-day operation of a wind farm is managed from an onshore base.Activities include day-to-day workflow management and data gathering and analysis.This allows owners to respond efficiently to failures when they occur and,where possible,to identify potential failures before they arise.The management of logistics(vessels,helicopters,personnel,specialist tooling and spare parts)is also an important part of the operations role.For O&M,wind farm operators will typically look to use the nearest port that meets their specifications in order to minimise travel time and make the best use of weather windows.Vessels and equipment are therefore an essential component of this sub-element and an area where Dutch suppliers have significant expertise.Crew transfer vessels(CTVs)typically provide transport for technicians and spares from the onshore base to offshore wind farms less than about 90 minutes transfer time from port.Some wind farms supplement CTVs with full-time helicopter support,for transporting technicians when the task in hand does not require heavy tools or spares,or when sea conditions are severe.Spare parts are stocked in onshore warehouses.Service operations vessels(SOVs)are larger than CTVs,with a greater capacity,and are typically used for wind farms more than about 90 minutes transfer time from port.They are effectively a floating OMS base,accommodate between 60 and 90 passengers and contain workshops and storage for equipment,consumables and spares.6.2 MaintenanceMaintenance and inspection services include both planned(and unplanned)visits to wind turbines and their foundations for the purposes of inspection maintenance and repair,performed by the wind farms usual staff and equipment.Turbine maintenance typically involves a planned visit to each turbine once or twice a year.During these visits,technicians carry out inspection and maintenance activities,including checks on oil and grease levels and a change of filters,checks on instruments,electrical terminations,the tightness of bolts and statutory safety inspections.Foundations for wind turbines and offshore substations require structural inspection and maintenance on a regular basis,as bad seals and corrosion can cause severe damage that is both expensive and difficult to repair.The oil and gas industry has developed a wide range of solutions for safe access to offshore structures.Inspection and repair activity is high within the North Sea sector with a high number of skilled and experienced technicians.44Dutch Offshore Wind Innovation GuideIn the news 2024Worlds First O&M Campaign Using Heavy-Lift Cargo Drones Underway at Dutch Offshore Wind FarmSource:offshorewind.bizrsted has deployed heavy-lift cargo drones(HLCDs)for maintenance work at the Borssele 1&2 offshore wind farm in the Netherlands.This is the first time heavy-lift cargo drones are being used in an operational campaign,according to the company which tested the concept in 2023 at its Hornsea One offshore wind farm in the UK.At the 752 MW Dutch offshore wind farm that has been in operation since 2020,the 70-kilogram drones will transport cargo of up to 100 kilograms from a vessel to all 94 wind turbines.The campaign now underway at Borssele 1&2 is being performed to update some critical evacuation and safety equipment in each of the turbines.A drone can complete a task that typically takes several hours in minutes,according to rsted.Using drones for cargo transport at Borssele 1&2 will reduce costs and time as there is less work disturbance since wind turbines do not have to be shut down when cargo is delivered,according to the developer.Drones also prevent risk,making it safer for personnel working on the wind farm,and minimise the need for multiple journeys by ship,reducing carbon emissions in the process,the company pointed out.In the news 2024Ampelmann and Seaway7 Partner on Their First US Offshore Wind ProjectSource:offshorewind.bizDutch offshore access provider,Ampelmann,has received an order from Seaway7 to supply an E5000 gangway,which will support the construction of a major US coast offshore wind project.The order not only marks the first collaboration of Seaway7 and Ampelmann in the Americas but will also see the first tour of duty of the E5000 outside of Europe,said the Dutch company.According to Ampelmann,the E5000 is the biggest motion-compensated system in the world.The gangway has a lifting capacity of 4,600 kg.Based on the proven technology of the E1000,it can switch between crane and gangway mode in less than a minute.Because of its high cargo-bearing capacity,the E5000 is well equipped to lift heavier generators,including fuel and cables,that are required for larger wind turbines.This is not the first time Ampelmann secured work in the US offshore wind market.In March 2023,the company signed six new contracts for the supply of its E1000 and A300 gangways.The gangways were used to assist in the hook-up,cabling,and commissioning of turbines on Vineyard Wind and South Fork Wind projects.456.3 Inspections,repairs Unplanned service involves technician visits to a turbine in response to an alarm reported on the wind farm supervisory control.Large vessels are needed to undertake the removal and replacement of major components,such as turbine blades or gearboxes,during operation.This may occur following a failure or as part of a replacement programme for components nearing the end of their lives.Equipment such as ROVs and support vessels is often rented and in many cases by a third party.In the news 2024Bluestream to Perform Remedial Campaign at Two German Offshore Wind FarmsSource:offshorewind.bizVattenfall and Stadtwerke Mnchen have awarded Dutch company Bluestream Offshore,an OEG Renewables business,a contract for a remedial campaign on the DanTysk and Sandbank offshore wind farms in the German North Sea.Bluestream will provide specialist subsea and topside services for the remedial campaign which will run for around 35 days.The work includes the replacement of Impressed Current Cathodic Protection(ICCP)systems that prevent corrosion in the metal structure of the turbine foundation and tower,replacement of various reference cells,debris removal and sonar transponder exchanges.The company will charter the Go Electra multi-purpose service vessel with air dive spread and a Seaeye Tiger observation class remotely operated vehicle(ROV)to carry out the work.Located west of the island of Sylt,DanTysk and Sandbank offshore wind farms each have a generation capacity of 288MW.DanTysk offshore wind farm comprises 80 Siemens Gamesa 3.6 MW turbines that have been in operation since 2014.Sandbank offshore wind farm,which has been in operation since 2016,has 72 Siemens Gamesa 4 MW turbines.6.4 Port development,logisticsThe availability of waterside(port)infrastructure is a prerequisite for much of the necessary new coastal manufacturing,assembly and installation infrastructure to deliver the anticipated offshore wind farms.Facilities may either be developed for manufacturing and installation activities,or as standalone installation facilities.Most Dutch ports are in public ownership and their investment decisions can consider the wider local economic benefits of a project,as well as the direct port revenue.This is in contrast to for example some UK ports,which are operated privately and make investment decisions purely on commercial factors.46Dutch Offshore Wind Innovation GuideManufacturing and/or InstallationAll larger NL ports have timely developed master plans that incorporate offshore wind installation facilities to contribute to the installation of commercial scale wind farms in the Dutch economic zone of the North Sea.Since the supply of finished wind farm components is relatively low,most ports in NL can be characterised as installation ports where the main wind farm components are stored and pre-assembly is completed before the components are loaded onto an installation vessel.In the Northern part of the Netherplands,the port of Eemshaven plays an important role regarding assembly and shipping activities of wind turbines.This resulted in a long track record:successively Alpha Ventus,Bard Offshore I,Borkum Riffgat,Borkum Riffgrund I,Trianel Windpark Borkum,Global Tech I,Gemini,Gode Wind I&II,Veja Mate,Race Bank(UK),Nordsee One,Borkum Riffgrund II,Merkur Offshore,Hohe See,Albatros,Trianel Windpark Borkum II,Hornsea Two and Kaskasi.Currently Eemshaven accommodates three offshore wind projects simultaneously:wind farm Hollandse Kust Noord,Gode Wind III and Borkum Riffgrund III.Renowed operations and maintenance bases for offshore wind in the western part of the Netherlands companies include IJmuiden(Hollandse Kust(zuid),Hollandse kust(west)and Vlissingen(Borssele).A notable exception is the Port of Rotterdam where Sif has developed facilities for manufacturing of monopile foundations.For more information on the specifics of the Dutch offshore wind hubs,please check:Port of Amsterdam:www.portofamsterdam.nl Port of Den Helder:www.portofdenhelder.eu Groningen Seaports:www.groningen- Port of Harlingen:www.portofharlingen.nl/en Port of Rotterdam: North Sea Port: Port of IJmuiden(Zeehaven IJmuiden):www.zeehaven.nl/enFor more information on port logistics,please refer to:www.windandwaterworks.nl/cases/port-developmentand-logistics4748Dutch Offshore Wind Innovation Guide7.Dutch offshore wind innovatorsThe main driver for growth in the offshore wind industry is the ongoing decrease in the so-called Levelised Cost of Energy(LCOE),partly driven by initial innovations inoffshore-specific turbine designs and a bespoke offshore wind supply chain.These cost reductions have encouraged Government policy and financial support tothe sector,in order to address the decarbonisation ofelectricity production.Such efforts have,in turn,accelerated innovations,not only to further reduce costs,but also to minimise the ecological impact of offshore wind farms during installation and operation.497.1 Dutch R&D actorsThe Netherlands has a strong focus on innovations in the offshore wind industry,supported by knowledge institutes such as the Technical University Delft(TU Delft)and Netherlands Organisation for Applied Scientific Research(TNO),and by organisations like GROW,TKI Offshore Energy/Topsector Energie(Energy Innovation NL)that aim to bring actors together and initiate innovations and advise policy makers.Some of the main R&D actors are listed below.Topsector Energy/Energy Innovation NL The Dutch Government encourages energy transition innovations through tax benefits,innovation credit and(EU)grants.The Government also works together with the private sector,universities and research centers,in so-called Top Sector Alliances for Knowledge and Innovation(TKI)to support business sectors,such as the energy sector to get innovative products or services on the(inter)national market.TKI Offshore EnergyThe Wind at Sea programme plays an important role in Dutch innovations in offshore wind.TKI Offshore Energy boosts and facilitates offshore wind innovation in collaboration with RVO through research,development,and demonstration.The aim is to allow offshore wind energy to make a major contribution to the energy transition.Technical University of Delft(TUD)TU Delft(TUD)is involved in research into new materials and structures for offshore wind turbines,applying newly developed insights in the fields of wind loads,fluid mechanics and control engineering.TUD focusses on new concepts designed to reduce the loads on support structures,more reliable wind turbines and wind farm operations,and the optimisation of the entire energy supply chain from wind to the grid,including the incorporation of electricity from wind power plants within the European power grid.Dutch innovation actors translate this knowledge into innovations for(amongst other things)wind turbine components and rotor blades and the so-called balance of plant components such as foundations,substations and cables.GROWGROW is a joint research programme in offshore wind that initiates research and accelerates innovations.The consortium includes around 20 leading and committed business and academic partners that cooperate closely to conduct joint research.GROW partners work together to reduce the costs of offshore wind and to increase the value of wind energy in the energy system and the ecosystem.Furthermore,GROW creates the visibility of the projects and the partners involved by showing the innovative capacity of the Dutch offshore wind sector,such as through the SIMOX project.TNO TNO unit Energy Transition,Wind Energy Department formerly known as ECN Wind Energy has been active in wind energy for more than 40 years.It is the flagship of Dutch Research&Development on Renewable Energy and is one of the global leading knowledge institutes in the field of wind energy.The Wind Energy Department focuses on research/B2B collaboration in:wind turbine and foundation design,both bottom fixed and floating;wind farm design/wind turbine and wind farm control;energy system integration of large scale(wind)generated energy;power to X;installation and operations/maintenance strategy/approach.DOB AcademyEmpowering engineering and R&D excellence through energy education is also important in the highly multidisciplinary field of offshore wind.Dutch offshore energy education institute DOB-Academy trains nationalas well as international officials and industry professionals through lectures,classroom workshops,online modules and seminars.This enables people from different backgrounds to speak a common language,which is essential in a multidisciplinary field such as the offshore industry.7.2 Low cost piling innovationsUntil now transition pieces have been traditionally included in monopile foundations.However,as the offshore wind industry develops,continuous improvements in offshore installation procedures,techniques and technology,means TP-less solution have also come into play.These eliminate a bolted(or grouted)connection and allow faster installation and cost reductions,for example,through reduced inspection durations during the O&M phase.50Dutch Offshore Wind Innovation GuideIn the news 2023Shell and Eneco Back at Sif for More Transition Piece-Less MonopilesSource:offshorewind.bizEcowende and Sif Holding will collaborate on the construction of Ecowendes offshore wind farm Hollandse Kust West site VI,located about 53 kilometres off the Dutch coast,near IJmuiden.The collaboration for this project between the offshore wind farm developer,a joint venture of Shell and Eneco,and Sif Holding dates to February 2023 when Sif announced having taken a final investment decision on the expansion of its manufacturing facilities in Rotterdam.At that occasion Ecowende,as a launching client for the expanded factory,committed to participate in its financing through an Advance Factory Payment.The project was already in Sifs order book for 70 kilotonnes but with the signature of the final contract is now firm for production in 2025.Sif will be responsible for the manufacturing of the 52 extended monopile foundations that will have no transition pieces,but secondary steel components,and that will have a total weight of approximately 70 kilotonnes.Transition piece-less monopiles were successfully applied by Sif in earlier projects offshore the Netherlands,including the Hollandse Kust Noord project for Crosswind,another joint venture of Shell and Eneco.In this transition piece-less design,the secondary steel components like boat-landings,ladders,main access platforms,and internal platforms will be connected to the monopile foundations once these are installed at sea.The secondary steel components will also be delivered by Sif in the same contract.Ecowende,together with partners such as Sif,intends to set a new ecological standard for building and operating wind farms in the North Sea,with minimal impact on the natural habitat of birds,bats and marine mammals,and with a thriving underwater world.Ecowende,said:”Building a wind farm in harmony with nature is an important condition for eventually achieving the ambition of 70 GW of offshore wind energy by 2050,within the ecological limits of the North Sea.Ecowende will implement various innovations and larger-scale measures to mitigate the negative effects of the wind farm on the local ecology and to stimulate positive effects.For Sif,this implies for example that the monopiles are designed for low noise installation methods and that they can support various wildlife detection and monitoring devices,above and below the water line.”517.3 Low noise piling innovationsFoundation installations,in particular,are receiving a lot ofR&D attention.The traditional installation method uses hydraulic impact hammers,which create underwater noise,potentially damaging nearby marine life and ecosystems.Dutch innovations are aimed at minimising noise while retaining(and preferably improving upon)the speed and efficiency of the traditional method.In the news 2024Ecowende to Install Three Monopiles at Dutch Offshore Wind Farm in Silent ModeSource:offshorewind.bizEcowende,a joint venture between Shell and Eneco,and the Dutch company GBM Works have signed a contract for deploying GBMs noise reduction technol
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Climate Tech in Timor-Leste:Strengthening climate adaptation and resilienceAugust 2025This material has been funded by UK International Development from the UK government and is supported by the GSMA and its members.The views expressed do not necessarily reflect the UK governments official policies.Authors Nigham Shahid(Senior Insights Manager,GSMA Mobile for Development)Elizabeth Abubakar(Insights Manager,GSMA Mobile for Development)ContributorDaniele Tricarico(Head of EmergingTech,Central Insights Unit and MEL,GSMA Mobile for Development)AcknowledgementsThis report was supported by research conducted for the GSMA by Emily Morrison from Sustainability Solutions Timor-Leste,as well as Pedro Macral da Costa and Joctan Lopes.We would like to thank the GSMA Mobile for Development ClimateTech,AgriTech and Mobile for Humanitarian Innovation teams for their inputs.We would also like to thank the many individuals and organisations in Timor-Leste and other Small Island Developing States that contributed to the research.A full list of organisations consulted can be found at the end of the report.The GSMA is a global organisation unifying the mobile ecosystem to discover,develop and deliver innovation foundational to positive business environments and societal change.Our vision is to unlock the full power of connectivity so that people,industry,and society thrive.Representing mobile operators and organisations across the mobile ecosystem and adjacent industries,the GSMA delivers for its members across three broad pillars:Connectivity for Good,Industry Services and Solutions,and Outreach.This activity includes advancing policy,tackling todays biggest societal challenges,underpinning the technology and interoperability that make mobile work,and providing the worlds largest platform to convene the mobile ecosystem at the MWC and M360 series of events.We invite you to find out more at GSMA Central Insights UnitThe Central Insights Unit sits at the core of GSMA Mobile for Development and produces in-depth research on the role and impact of mobile and digital technologies in advancing sustainable and inclusive development.The CIU engages with public and private sector practitioners to generate unique insights and analysis on emerging innovations in technology for development.Through our insights,we support international donors to build expertise and capacity as they seek to implement digitisation initiatives in low-and middle-income countries through partnerships within the digital ecosystem.Contact us by email:Definitions of terms 2Abbreviations and acronyms 4Executive summary 51.Introduction 81.1 Climate change in Small Island Developing States 91.2 The impacts of climate change in Timor-Leste 101.3 Climate tech for climate adaptation and resilience 132.Research objectives and methodology 152.1 Research objectives 162.2 Research methodology and scope 173.Climate adaptation and resilience in Timor-Leste:contextual factors 193.1 Connectivity infrastructure and mobile internet penetration 203.2 Literacy and digital skills 223.3 Policy and regulations 233.4 Financing for climate adaptation 253.5 Governance and institutional capacity 264.Anticipate,Adapt,Absorb:Climate tech for climate adaptation and resilience in Timor-Leste 274.1 Extreme weather events and natural hazards 284.2 Agriculture and food security 414.3 Public health 505.Considerations for scaling climate tech 59Annex 64Acknowledgements 64Key stakeholder mapping 65ContentsDefinitions of terms 1 International Telecommunication Union(ITU).(n.d.).Artificial intelligence for good.2 United Nations Office for the Coordination of Humanitarian Affairs(UN OCHA)(n.d.).Anticipatory action.3 GSMA.(2025).ClimateTech Green Glossary.4 Ibid.5 Ibid.6 Ibid.7 Ibid.8 University College London(17 February 2023).Community-based early warning systems.Artificial intelligenceAI is comprised of widely different technologies that can be broadly defined as“self-learning,adaptive systems”.AI has the capability to understand language,solve problems,recognise pictures and learn by analysing patterns in large sets of data.1Anticipatory action Acting ahead of predicted hazards to prevent or reduce acute humanitarian impacts before they fully unfold.Effective implementation of anticipatory action ideally requires a pre-agreed trigger(rule-based decision based on measurable forecasts),pre-agreed activities(to support at risk communities between the trigger and full impact)and pre-agreed financing(funding based on the trigger).2Climate adaptationAdjusting to actual or expected changes brought about by climate change.These are incremental changes in response to climate trends such as droughts.3Climate-smart agricultureAn approach to farming that aims to increase agricultural productivity and resilience to climate change while reducing greenhouse gas emissions where possible.It promotes sustainable practices such as crop diversification,efficient water management,and the use of technology to improve farming practices.The GSMA supports the use of mobile and digital technologies in climate-smart agriculture to help farmers adapt to changing climate conditions,access weather forecasts and optimise resource use.4Climate mitigationReducing greenhouse gas emissions and transitioning to a low-carbon economy to slow the rate of climate change.Examples include generating electricity from renewable sources,shifting away from internal combustion engine vehicles and reducing agricultural emissions.5Climate resilienceThe capacity of social,economic and environmental systems to cope with a hazardous event,trend or disturbance,responding or reorganising in ways that maintain their essential function,identity and structure,while also maintaining the capacity for adaptation,learning and transformation.The GSMA uses the“Three As”framework of climate resilience to support communities and vulnerable groups to:Anticipate climate variability and risks from extreme climate events,thus supporting preparedness and planning(e.g.through early warning systems)Adapt to multiple,long-term and evolving climate change risks(e.g.through precision agriculture and long-term weather forecasting)Absorb adverse conditions,emergencies or disasters(e.g.through access to credit and insurance in the event of a climate disaster).6Climate techFor the purposes of this report,climate technology or climate tech,refers to a broad set of digital technologies that support:Actions taken to reduce greenhouse gas emissions and mitigate climate change Actions taken to build the resilience of the most vulnerable communities to climate change stressors and threats Actions that drive the sustainable use,management and protection of natural resources and the environment in areas most vulnerable and exposed to climate change.7Community-based early warning systemAnticipatory action that empowers communities to monitor and prepare for risks,rather than respond to disasters.82Strengthening Climate Adaptation and Resilience with Climate TechDigital climate advisory servicesTailored advisory content based on dynamic agroclimatic conditions at the farm level,for example,information on soil type,crops cultivated,length of cropping cycle and weather forecasts.These services enable relevant advice at the right time on planting,input application,crop management and harvesting.9Disaster risk reductionPreventing new and reducing existing disaster risk and managing residual risk,all of which help to strengthen resilience and support sustainable development.10Early Action Protocol Articulates a national plan to trigger early actions in advance of a weather or non-weather-related hazard.11El NioThe warming of sea surface temperature that occurs every few years,typically concentrated in the central-east equatorial Pacific.An El Nio is declared when sea temperatures in the tropical eastern Pacific rise 0.5C above the long-term average.El Nio is felt strongly in the tropical eastern Pacific with warmer than average weather.Early warning systemAn integrated system of hazard monitoring,forecasting and prediction,disaster risk assessment,communication and preparedness activities,systems and processes that enables individuals,communities,governments,businesses and others to take timely action to reduce disaster risks in advance of hazardous events.12Geospatial mappingA spatial visualisation method that enables the creation of customised maps.The primary aim is to show items with geographic coordinates,providing a representation of the physical world on a map.Various approaches,solutions and geographic information systems(GIS)software can be used to analyse existing geospatial data and geographical and terrestrial databases.139 GSMA.(2022).Data-driven advisory services for climate-smart smallholder agriculture.10 United Nations Office for Disaster Risk Reduction(UNDRR).(2017).Disaster risk reduction.The Sendai Framework Terminology on Disaster Risk Reduction.11 International Federation of Red Cross(IFR).(2022).Simplified Early Action Protocol.12 UNDRR.(n.d.).Definition:Early Warning System.13 Virginia Polytechnic Institute and State University.(2025).An Introduction to Geospatial Mapping:Understanding Geospatial Mapping.14 GSMA.(2016).What is the Internet of Things(IoT)?15 Brown,S.(21 April 2021).Machine learning,explained.MIT Management Sloan School.16 UNDRR.(2017).Disaster risk reduction.The Sendai Framework Terminology on Disaster Risk Reduction.17 Hunan Rika Electronic Tech Co.,Ltd.(n.d.).Hydrological Monitoring Solution.18 Adapted from GSMA,2022.19 Public-Private Partnership Resource Center(PPPRC).(n.d.).What are PPPs?World Bank.Internet of ThingsThe coordination of multiple machines,devices and appliances connected to the internet through multiple networks.14Machine learningA subfield of AI broadly defined as the capability of a machine to imitate intelligent human behaviour.15Multi-hazard early warning systemAddresses several hazards and/or impacts of similar or different types in contexts where hazardous events may occur alone,simultaneously,in a cascade or cumulatively over time,taking into account the potential interrelated effects.16Hydrological monitoring stationUsed to monitor the hydrological parameters of rivers,lakes,reservoirs,channels and groundwater(temperature,level,flow rate,etc.)in real time,allowing relevant departments to forecast,prevent and mitigate natural hazards.Hydrological monitoring stations can be used for meteorological research,disaster prevention and mitigation,scientific research and other fields.17Precision agricultureServices that provide advice to farmers tailored to the farm-or sub-farm level.A sub-use case of digital advisory,precision agriculture services rely on drones,on-farm sensors and soil testing to customise advisory content and identify appropriate interventions.These services are typically provided by agritechs that commercialise a data collection technology such as drones or soil testing.18Public-private partnershipA mechanism for governments to procure and implement public infrastructure and/or services using the resources and expertise of the private sector.193Strengthening Climate Adaptation and Resilience with Climate TechAcronyms and abbreviationsAI Artificial IntelligenceAWS Automatic weather stationCBDRM Community-based disaster risk managementCBEWS Community-based early warning systemCREWS Climate risk and early warning systems DCAS Digital climate advisory servicesDPI Digital public infrastructureDRR Disaster risk reductionEAP Early Action ProtocolEW4All Early Warnings for All initiativeEWS Early warning systemGIS Geographic information systemHIS Health information systemIoT Internet of ThingsMHEWS Multi-hazard early warning systemNAP National Adaptation PlanPPP Public-private partnershipSIDS Small Island Developing StatesSMS Short message serviceWASH Water,sanitation and hygiene4Strengthening Climate Adaptation and Resilience with Climate TechExecutive summary20 World Bank.(2025).Timor-Leste.Projected international poverty rate for 2024,based on international poverty rate($2.15 in 2017 PPP).21 World Food Programme(WFP).(18 April 2024).Timor-Leste facing high food insecurity,latest report warns.News release.Timor-Leste,an island nation with a population of almost 1.4 million people,is highly vulnerable to climate change.Classified as both a Small Island Developing State(SIDS),and a Least Developed Country(LDC)by the United Nations,Timor-Leste is a young,post-conflict nation where an estimated one-quarter of the population live below the international poverty line.20 Highly exposed to natural hazards like cyclones,earthquakes,tsunamis and heavy rainfall,the risk from these events is compounded by weak infrastructure and limited social protection systems,making the population exceptionally vulnerable to the impacts of climate change.With more than 25%of the population experiencing acute food insecurity in 2024,21 and projections indicating that extreme weather events could reduce GDP by up to 5%in worst-case scenarios,strengthening climate resilience is critical to safeguarding lives,communities,livelihoods and the economy.Climate technology,or climate tech,offers significant potential to strengthen climate adaptation and resilience,including to extreme weather events and natural hazards,in agriculture and food security and public health.However,this opportunity remains untapped in Timor-Leste.The country has made some progress in digital initiatives for climate resilience and adaptation,including the implementation of a flood early warning system(EWS)in the capital,Dili,and the ongoing development of a national multi-hazard early warning system(MHEWS)with investment from the Green Climate Fund(GCF).However,the uptake of climate tech for strengthening climate adaptation and resilience in other key areas has been slow.The experience of countries with similar geographic,socio-economic and institutional contexts suggests there are several high-impact and practical opportunities for Timor-Leste to use climate tech to help communities better anticipate,adapt to and absorb climate risks.These include:Mobile dissemination of early warnings for natural hazards and disease outbreaks,using SMS and smartphone apps as part of a multi-channel delivery system to reach as many people as possible Digital community-based early warning systems(CBEWS)that include,empower and protect communities A national multi-hazard early warning system(MHEWS)Mobile agricultural climate advisory services,offering farmers timely,tailored guidance on local climate-related risks and adaptation measures Mobile and digital solutions for disease surveillance Integrated climate and health data systems to support evidence-based decision-making and targeted climate adaptation and resilience measuresIf grounded in inclusive,context-specific design and implementation strategies,these targeted interventions could significantly help strengthen climate adaptation and resilience in Timor-Leste.5Strengthening Climate Adaptation and Resilience with Climate TechTimor-Leste is building an enabling environment for climate tech,but there are several barriers.Timor-Leste is actively laying the foundation for a more enabling environment for climate tech adoption.Policies like Timor Digital(2032)22 and the National Adaptation Plan(NAP)(2021)indicate the governments commitment to climate adaptation and resilience,as well as the use of digital tools for sustainable development.Connectivity infrastructure is set to improve with a new submarine cable connection to Australia expected to be operational soon,as well as the recent launch of Starlink satellite services.Planned regional integration with ASEAN in October 2025 is also expected to catalyse greater investment,facilitate peer-to-peer learning and spur innovation through enhanced cross-border collaboration.22 See:Timor Digital 2032.However,significant barriers remain.Internet penetration stands at just 35%of the population,with even lower rates in rural areas where almost two-thirds of Timorese live.Adult literacy rates are approximately 70%,and literacy and digital skills gaps are particularly pronounced in rural communities.Financing for climate adaptation and resilience initiatives is a major constraint.Furthermore,limited technical expertise,weak interagency coordination and a nascent private sector with limited capacity for climate tech innovation continue to pose challenges to the development,deployment and sustainability of climate tech initiatives.There are strategic opportunities to better leverage climate tech to help Timor-Lestes communities anticipate,adapt to and absorb the impacts of climate change:Adopting mobile-based solutions:Climate tech solutions must prioritise last-mile delivery on feature phones in addition to smartphone-based tools.Offline functionality is essential,and interfaces must support local languages with audio options for those with low literacy.Building on existing initiatives and investments while diversifying funding mechanisms:Current financing gaps require blended finance approaches combining donor grants,private investment and government funding.Where feasible,strengthening existing digital initiatives rather than launching parallel ones could also reduce costs where existing infrastructure is fit for purpose.Strengthening technical capacity:Sustainable implementation requires significant investment in technical training for government officials,technical personnel and communities.Regional knowledge exchange with Pacific SIDS and ASEAN countries could provide strong opportunities to accelerate learning and capacity building.Fostering private sector innovation in climate tech:Local entrepreneurs could be supported through government procurement,regulatory sandboxes and connections with regional climate tech leaders.Initial efforts could focus on demonstrated needs like agricultural climate advisory and early warning systems(EWS).Including communities in climate tech solutions:Successful adoption of climate tech requires genuine community inclusion,integrating traditional governance structures and Indigenous knowledge with modern digital tools.This is particularly important for Timor-Leste,where traditional knowledge-based customs and practices,referred to as tara bandu,are used to adjudicate disputes and manage resources.6Strengthening Climate Adaptation and Resilience with Climate TechTo be effective in Timor-Leste,climate tech solutions must be tailored to its geography,cultural and linguistic diversity,and socio-economic realities.Solutions should be affordable,locally owned,and work with traditional governance and knowledge systems.Long-term impact will depend on building local capacity and fostering strong,inclusive partnerships.For climate tech to be effective in Timor-Leste,several factors must be considered.First,its geography.Solutions must be tailored to the countrys mountainous terrain,diverse microclimates and specific hazards such as coastal flooding,landslides and drought.Generic approaches are unlikely to deliver the relevance or accuracy needed for local decision-making.Climate tech initiatives must also accommodate Timor-Lestes linguistic diversity by offering solutions in multiple languages.Integrating traditional knowledge practices and aligning with existing community governance and social structures will be key to ensuring local ownership and sustained adoption.With a quarter of Timor-Lestes population estimated to be living below the international poverty line in 2024,climate tech solutions must be designed with affordability in mind.Finally,sustainability will depend on building long-term local capacity.This includes ensuring community participation from the outset,fostering technical self-reliance through local training and capacity building and establishing sustainable financing mechanisms that reduce dependence on external funding and expertise over time.The opportunity is significant,with anticipated improvements in connectivity infrastructure and regional integration creating favourable conditions for scaling climate tech initiatives for climate adaptation and resilience.However,realising this potential will require both sustained commitment and strong collaboration between government,development partners,the private sector and local communities to build long-term,inclusive,locally-owned solutions.7Strengthening Climate Adaptation and Resilience with Climate Tech01.Introduction1.1 Climate change in Small Island Developing States 23 SIDS are a group of 39 Member States and 18 Associate Members of United Nations Regional Commissions located in the Caribbean,the Pacific and the Atlantic,Indian Ocean and South China Sea(AIS).See:UNDRR,Small Island Developing States(SIDS).24 SIDS may be high-income,middle-income or low-income countries but share common features,such as small economies,populations and land masses,combined with large ocean territories,proportionally long coastlines and remoteness from other population centres.See:UK Parliament.(2024).The UK Small Island Developing States Strategy:Fourth Report of Session 202324.25 UNDP.(30 April 2024).Small Island Developing States are on the frontlines of climate change heres why.26 Moreira da Silva,J.(29 May 2024).Why small island states need scaled finance and amplified action.World Economic Forum.27 IPCC.(2022).Chapter 15:Small Islands.IPCC Sixth Assessment Report:Impacts,Adaptation and Vulnerability.28 UNDP.(30 April 2024).Small Island Developing States are on the frontlines of climate change heres why.29 Ibid.In 2023,Vanuatu led a global coalition that resulted in the historic UN resolution requesting the International Court of Justice to hold polluting countries legally accountable for failing to tackle the climate emergency.Climate change,driven by rising greenhouse gas emissions caused primarily by human activity,is having a profound long-term impact on global temperatures and weather patterns.This has resulted in more frequent heatwaves,accelerated melting of ice leading to rising sea levels and increased occurrences of extreme weather events such as floods,wildfires,storms and droughts.These changes are threatening the lives and livelihoods of communities,affecting their access to life-sustaining resources such as clean water and sufficient food and creating more urgent and frequent health risks.Small Island Developing States(SIDS),which include 39 countries and 18 territories,are far from homogeneous but their geography makes them all exceptionally vulnerable to climate change.23,24 While SIDS account for only 1%of global greenhouse gas emissions,they suffer some of the worst impacts of climate change(Figure 1).Figure 1:Climate-related impacts in SIDSOn average,18%of the total population of SIDS is affected by a climate-related disaster compared to 6%in other countriesThe disaster mortality rate in SIDS is more than double the global averageFrom 1970 to 2020,SIDS lost$153 billion due to extreme weather events,a significant amount relative to their average GDP of$13.7 billionSource:UNDP25Most SIDS are categorised as low-and middle-income countries(LMICs)and face even more pronounced challenges as limited financial,technical and human resources hinder the implementation of effective climate adaptation and resilience strategies.In addition,more than 40%of SIDS have unsustainable levels of debt,seriously limiting their ability to invest in climate resilience and adaptation.26 SIDS have therefore been at the forefront of the global climate justice movement.For example,they have advocated for keeping the 1.5C target for global warming established in the Paris Agreement,27 arguing that an increase to a 2C limit would put their countries at very high risk of devastation.28,299Strengthening Climate Adaptation and Resilience with Climate TechLautmJacoViquequeManatutoManufahiAileuAtauroDiliTimor-LesteTimor SeaIndonesiaIndonesiaLuquiErmeraBobonaroCova-LimaOecusse-AmbenoAinaroBaucauFigure 2:Map of Timor-Leste1.384 million1,425people/sq kmin Dili(capital)29people/sq kmin Manatuto42p municipalities67 subdistricts442 Sucos/villages14,870 sq kmUrban/rural90/sq km104:100637%PopulationPopulation densityPopulation age(2022)AdministrationSex ratioPopulation density rangeSizeMale UrbanFemale Ruralvs(2022)Under 30Under 181.2 The impacts of climate change in Timor-Leste1.2.1 Background30 World Bank Data Portal:Timor-Leste.31 World Bank Country Profile:Timor-Leste.32 See:Timor-Lestes National Adaptation Plan.33 World Bank Group.(July 2023).Timor-Leste Economic Report.Timor-Leste is a SIDS located northwest of Australia and to the east of the Indonesian archipelago,comprising the mountainous region of East Timor,the Oecusse-Ambeno region in the northwest of the island of Timor,as well as the islands of Atauro and Jaco(Figure 2).It gained independence in 2002 and is one of the youngest and smallest countries in the world,with an estimated population of just under 1.4 million in 2024.30 The country experienced severe economic stress from 2017 to 2021 due to political instability as well as numerous external shocks,including the COVID-19 pandemic and several extreme weather events.31 Source:Timor-Leste:National Adaptation Plan(2021)32 Source:World Bank(2023)3310Strengthening Climate Adaptation and Resilience with Climate Tech34 Government of Timor-Leste.(25 March 2025).National Economy Grew by 4%in 2024.35 Bangkok Post.(29 May 2025).ASEAN leaders agree to admit Timor-Leste.36 UN ESCAP.(1 March 2024).Timor-Leste:Structural transformation and economic diversification towards a sustainable graduation from LDC category.37 Ibid.38 Cambridge Industrial Innovation Policy.(29 September 2023).The Development Crossroads of Small Island States:the case of Timor-Leste.Since 2022,Timor-Leste has had an increasingly positive economic growth outlook,with growth at 4%of GDP in 2024 compared to 2.4%in 2023.34 The country will also be admitted to the Association of Southeast Asian Nations(ASEAN)in 2025,35 and this regional integration is expected to strengthen its institutions,build investor confidence and drive foreign investment.Despite this positive outlook and investments in both infrastructure and human development,Timor-Leste is designated as a least-developed country(LDC)by the UN,which means it faces severe structural impediments to sustainable development,is highly vulnerable to economic and environmental shocks and has low levels of human development.Challenges such as malnutrition and limited access to basic services such as education and healthcare persist.36 Timor-Leste has one of the lowest incomes per capita in the world.The economy is undiversified and heavily dependent on oil exports,with declining oil revenue making its future growth uncertain(Figure 3).37 A large proportion of the population relies on subsistence agriculture.38Figure 3:Overview of Timor-LesteRevenue from oil:80%of GDPInternational poverty rate($2.15,2023):24.4%Lower-middle income poverty rate($3.65,2023):69.2onomy4.0%1.9%3.1%3.9%GDP growth rate:Timor Leste(%per year)202220232024 forecast2025 forecastSource:Asian Development Bank,202411Strengthening Climate Adaptation and Resilience with Climate Tech1.2.2 The impacts of climate change39 World Bank.(n.d.).Climate Change Knowledge Portal:Timor-Leste.40 European Civil Protection and Humanitarian Operations(ECHO).(6 April 2021).Timor-Leste,Indonesia,Australia-Tropical Cyclone SEROJA(GDACS,JTWC,BNPB,Government of Timor-Leste,DG ECHO,Copernicus EMS)(ECHO Daily Flash of 6 April 2021).41 Oxfam.(September 2023).Community Experiences of Climate Change and its Impacts in Timor-Leste.42 Ibid.43 Timor-Leste National Institute of Statistics et al.(2023).Timor-Leste Population and Housing Census 2022.44 Iyengar,K.(29 February 2024).Addressing Timor-Lestes Food Security and Nutrition.Development Asia.45 Integrated Food Security Phase Classification(IPC).(2024).IPC Timor-Leste Acute Food Insecurity Analysis:November 2023-September 2024.46 World Bank.(2024).Timor-Leste Economic Report 2024:Fit for Purpose:Crafting a Stable,Inclusive and Resilient Financial Sector.As a SIDS,Timor-Leste is exceptionally vulnerable to the impacts of climate change.The country is at high risk of natural hazards,including cyclones,earthquakes,tsunamis and heavy rainfall.These risks are exacerbated by inadequate infrastructure and social welfare systems.39 Extreme weather events and natural hazards have already caused significant losses to communities.For example,in April 2021,Tropical Cyclone Seroja brought torrential rain to the country,leading to flash floods and landslides.These events damaged critical infrastructure,devastated agriculture and claimed at least 42 lives.40 The most vulnerable communities and groups,including rural women,smallholder farmers,persons with disabilities,people living in risk-prone areas and those without secure land tenure,are particularly affected by climate-related events.41 Women,who have equal rights to land in Timor-Leste by law but not in practice,tend to suffer disproportionately as recovery services are frequently linked to land ownership,primarily the domain of men.42 The impacts of these events are also uneven between the capital,Dili,and rural areas,where more than 65%of the population resides.43 In Dili,urban infrastructure such as homes and roads are significantly affected,while in rural areas,the impact tends to be on agricultural production.Given that more than two-thirds of households are engaged in some form of agriculture44 and more than 25%of the population is facing acute food insecurity,agricultural losses have a significant impact on vulnerable households.45 It is projected that worst-case scenarios in an extreme weather event could reduce Timor-Lestes annual GDP by 5%(Figure 4).It is therefore essential to strengthen climate resilience for the well-being of its communities.Figure 4:Climate change impacts and predicted losses from extreme weather events in different scenariosLandslidesFloodingErosionDroughtFuture:Worst case scenarioFuture:Moderate scenarioCurrent60P0 %001008060402005%4%3%2%1%0%Increased impact of natural disasters due to climate changeAverage annual losses under different climate scenarios(US$/%GDP)Source:Timor-Leste Economic report:Fit for purpose creating a stable,inclusive,resilient financial sector4612Strengthening Climate Adaptation and Resilience with Climate Tech1.3 Climate tech for climate adaptation and resilienceClimate tech for climate adaptation and resilience:the Three As framework47 GSMA.(2025).ClimateTech Green Glossary.48 Ibid.49 Ibid.50 Ibid.Climate resilience refers to the ability of social,economic and environmental systems to cope with hazardous events,trends or disturbances.This involves responding or reorganising in ways that preserve their essential functions,identity and structure,while also maintaining the capacity to adapt,learn and transform in the face of future shocks.47Climate adaptation is the process of adjusting to actual or anticipated climate change impacts,such as droughts,rising temperatures or erratic rainfall.These adjustments aim to reduce harm or take advantage of beneficial opportunities created by changing climate conditions.48Climate mitigation,by contrast,focuses on reducing greenhouse gas emissions and transitioning to a low-carbon economy to slow the pace of climate change.49 The GSMAs“Three As”frameworkAnticipate,Adapt,Absorbguides our work on climate adaptation and resilience,particularly in supporting vulnerable communities in LMICs.50 This framework emphasises preparing for risks,minimising their impact and making long-term adjustments to cope with climate change.Figure 5:The Three As of climate resilience and adaptationAnticipateActions that predict climate variability and risks from extreme climate events to support preparedness and planning(e.g.early warning systems)AbsorbActions that help reduce adverse conditions,emergencies or disasters(e.g.through access to credit and insurance in the event of a climate disaster)AdaptActions that help adjust to multiple,long-term and evolving climate change risks(e.g.through precision agriculture and long-term weather forecasting)Source:GSMA Mobile for Development13Strengthening Climate Adaptation and Resilience with Climate TechRapid advances in digital technology and connectivity are creating new opportunities to strengthen climate resilience and adaptation,including:Supporting actions to reduce greenhouse gas emissions and mitigate the impacts of climate change Improving the ability of vulnerable populations to withstand climate-related stressors and threats51 Ibid.Enabling the sustainable use,protection and management of natural resources,especially in areas most exposed to climate impacts51 When the right conditions are in place,climate tech can significantly reduce the vulnerability of communities to climate change by improving access to information,enabling EWS,enhancing decision-making and supporting more effective resource management(Figure 6).Figure 6:Climate tech for climate adaptation and resilience:the GSMAs Three As frameworkCross-cutting enablersDigital technologies Sensors and loT-based devices Drones and UAVs Robotics Remote sensing(Satellites)Weather stations Al&Machine Learning GIS Mobile-based apps and other channels of communication(USSD/SMS)Digital platformsAdaptation areas Agriculture Disaster risk management Health systems Water management Infrastructure resilience Energy Coastal and marine conservation Biodiversity Access to financeClimate adaptation and resilienceConnectivity infrastructure and mobile internet penetrationLiteracy and digital skillsPolicy and regulationsGovernance and institutional capacityFinanceSource:GSMA Mobile for Development14Strengthening Climate Adaptation and Resilience with Climate Tech02.Research objectives and methodology2.1 Research objectivesThis report examines the potential of climate tech to strengthen climate adaptation and resilience in Timor-Leste,with a focus on the most pressing climate-related challenges in three key areas:Extreme weather events and natural hazards Agriculture and food security Public healthThese three areas were selected based on several criteria:alignment with national development priorities,the urgency of reducing climate vulnerability,the demonstrated impact of climate tech in comparable low-income or SIDS contexts and the potential for cross-sectoral benefits.Building on an assessment of Timor-Lestes climate vulnerabilities in these sectors and a review of existing climate tech initiatives,this report identifies relevant,high-impact use cases from similar contexts that could inform Timor-Lestes climate adaptation and resilience efforts.Specifically,the report:Assesses key climate-related challenges and the current use of climate tech across the three identified areas Identifies opportunities to scale climate tech solutions and highlights relevant case studies from SIDS and LMICs with similar climate risks and development contexts Examines how Timor-Lestes enabling environment supports or constrains the adoption of climate tech for climate adaptation and resilience Proposes strategies to accelerate the uptake of climate tech to enhance adaptation and resilienceThe report provides actionable recommendations for stakeholders in Timor-Leste,including government,the private sector,NGOs and development partners working to reduce climate vulnerability in the country through the adoption and scaling of climate tech.It also offers insights and case studies that stakeholders in LMICs and SIDS facing similar climate risks may find valuable.16Strengthening Climate Adaptation and Resilience with Climate Tech2.2 Research methodology and scope2.2.1 Research methodologyThis research included extensive desk research as well as interviews with key experts from the public,private and development sectors in Timor-Leste and in other SIDS involved in digitally enabled climate adaptation and resilience initiatives.MethodologyObjectiveDesk research using academic and grey literature(news articles,blogs,industry reports,publications by donors,development agencies and NGOs)Understand the climate tech landscape in SIDS and LMICs and how climate tech is being used for adaptation and resilience to extreme weather events and natural hazards,agriculture and food security and public health Identify climate-related challenges and current adoption of climate tech in Timor-Leste in these three areas Identify relevant and replicable climate tech use cases from other SIDS and comparable LMICs to inform Timor-Lestes adoption strategyInterviews with key stakeholders in Timor-Leste(regulators,policymakers,researchers,tech companies,NGOs,donors,development partners)Develop a detailed understanding of current climate-related challenges and the adoption of climate tech in Timor-Leste to manage extreme weather events and natural hazards,agriculture and food security and public health Capture insights on the key opportunities of climate tech to strengthen climate adaptation and resilience in these three areas Identify the most notable barriers and viable strategies for climate tech adoptionInterviews with climate tech experts,practitioners and donor and development partners in SIDS and LMICs Explore replicable and scalable climate tech initiatives from comparable contexts to inform climate adaptation and resilience efforts in Timor-Leste2.2.2 Scope This report explores the potential of climate tech to support climate adaptation and resilience in Timor-Leste in three key areas:extreme weather events and natural hazards,agriculture and food security and public health.It does not aim to provide an exhaustive review of all climate tech applications relevant for the country.Instead,it highlights opportunities where targeted interventions could have the greatest impact.The report also does not focus on how climate tech can mitigate the impacts of climate change.While mitigation is a critical component of combatting climate change,Timor-Lestes low contribution to global greenhouse gas emissions limits the impact of mitigation efforts.In addition,Timor-Leste is among the countries most vulnerable to the immediate and intensifying impacts of climate change,including extreme weather events,threats to food systems and public health risks.Therefore,prioritising climate adaptation and resilience allows for an approach that aligns with the countrys needs in the short to medium term.17Strengthening Climate Adaptation and Resilience with Climate Tech2.2.3 Contextual comparisonsThis report presents examples from similar contexts that could help advance climate tech in Timor-Leste and support climate adaptation and resilience initiatives.To select these contexts,five criteria were applied:Climate vulnerability profile Exposure to similar climate hazards and similar levels of vulnerabilityEconomic development and structure Similar GDP per capita,structure of the economy,and development constraintsDigital infrastructure Comparable connectivity infrastructure and accessibility and affordability of digital services and devicesGovernance and institutional capacity Similar governance structures and implementation constraintsLiteracy and digital skills Comparable literacy rates,digital skills and technical capacityBased on these criteria,examples are provided from the following contexts,which are highly comparable and can provide lessons for Timor-Leste:Region/countryComparability Eastern Indonesia (especially Nusa Tenggara Timur,NTT)Very high similarity across all five dimensions Pacific SIDS (Tonga,Samoa,Fiji,Vanuatu,Papua New Guinea)High similarity across all dimensions,especially climate vulnerability Nepal (mountainous regions)High similarity,especially development status and governance Myanmar (coastal regions)High similarity,especially development status and governance18Strengthening Climate Adaptation and Resilience with Climate Tech03.Climate adaptation and resilience in Timor-Leste:contextual factorsThe assessment of climate tech opportunities for climate adaptation and resilience in Timor-Leste is grounded in the current capacities and limitations of the country,including connectivity infrastructure and 52 See:GSMA Mobile Connectivity Index.53 See:OOKLA website.mobile internet penetration;policies and regulations;digital skills and literacy;the availability of financial resources for climate adaptation and resilience initiatives;and public and private sector capacity.3.1 Connectivity infrastructure and mobile internet penetrationFigure 7:Snapshot of connectivity infrastructure and mobile internet penetration in Timor-Lesteof the population are covered by a mobile broadband networkof the total population are smartphone mobile internet subscriberssmartphone connectionsfeature phone connections of the population are unique mobile internet subscribersof the population are unique mobile subscribers The cheapest internet-enabled mobile phone costs 46%of monthly GDP per capitaOne of the highest cost countries for mobile internet globally,relative to average income95Fb%45%Median fixed internet connection speed at start of 2024:6.10 Mbps4.85 Mbps98.31 Mbps48.61 Mbpsvs Median mobile internet connection speed via cellular network at start of 2024:Global Global Timor LesteTimor LesteSources:GSMA Mobile Connectivity Index52,GSMA Intelligence,OOKLA53 Note:All statistics Q1 2025 unless indicated otherwise20Strengthening Climate Adaptation and Resilience with Climate TechConnectivity in Timor-Leste remains a significant challenge.Although much of the population has access to network coverage,international digital connectivity relies on satellites and microwave links,resulting in high latency,limited bandwidth and high operational costs.Digital connectivity depends primarily on terrestrial radio links to Indonesias networks or satellite connections to Australia and Singapore.Consequently,Timor-Leste experiences some of the poorest quality digital connectivity in the world at prohibitively high costs.54 Many people earn approximately$2 a day and would need to spend half that amount on daily access.55 Just 35%of the population are unique mobile internet subscribers and smartphones remain out of reach for a large segment of the rural population due to affordability challenges.Limited connectivity infrastructure has also slowed the development of basic digital public infrastructure(DPI),such as digital identity,data sharing and payments,which help accelerate the adoption of digital tools in sectors facing climate risk.For example,digital IDs can enable faster identification of and access to at-risk communities or households,and disbursement of funds to hazard-affected communities.In 2024,Timor-Leste was ranked 159 out of 193 countries in the UN E-Government Development Index(EGDI),indicating a significant need for the development of DPI.56 54 UNDP.(2023).Timor-Leste.Multidimensional Poverty Index 2023.55 Akara,M.and Sirait,R.(22 October 2024).A cable to connect Timor-Leste,but can it bridge the digital divide?The Interpreter.56 The E-Government Development Index is comprised of three sub-components:an online services index,a telecommunications infrastructure index and a human capital index.See:UN E-Government Knowledge Base:Timor-Leste.57 Government of Timor-Leste.(25 June 2024).Government Carries Out First Submarine Fiber Optic Cable Installation.58 Aman.(31 January 2025).Lusa Business News Timor-Leste:Tests on Australia fibre optic internet link underway minister.59 Salgado Alvarez,D.(18 December 2024).Starlink Launches High-Speed Internet Service in Timor-Leste.Asia Matters for America.In November 2024,the government inaugurated the Timor-Leste South Submarine Cable(TLSSC),linking the country directly to Darwin,Australia.57 This new infrastructure is currently being tested.58 When operational,it is expected to significantly enhance the quality of connectivity and reduce costs.Additionally,plans by the Australian government to integrate Timor-Leste in the North-West Cable System promise further advancements.Starlink,an international telecommunications provider that is a subsidiary of American aerospace company SpaceX,launched services in Timor-Leste in December 2024.Starlink satellites operate closer to Earth,reducing the lag time between satellite and ground stations and resulting in much higher internet speeds for its users.59 Although is too early to assess the long-term impact,Starlink is seeing uptake in the country,especially in urban areas.However,prices remain out of reach for average households,ranging from$40$50/month,with high initial investment in the Starlink hardware kit,reportedly around$400 per kit.Hence,while it opens some opportunities,the high cost will limit its impact.These developments in connectivity infrastructure,once complete,will help advance the types of digital solutions that could support climate adaptation and resilience in the country,making this an opportune moment for Timor-Leste to identify and initiate high-impact digital initiatives.21Strengthening Climate Adaptation and Resilience with Climate Tech3.2 Literacy and digital skillsBasic literacy in Timor-Leste has improved significantly since the country gained independence in 2002.Digital literacy is also improving,especially in urban areas where access to mobile phones and mobile internet is expanding.However,persistent challenges limit the uptake of digital tools(Table 2).Table 2:Basic literacy and digital literacy challenges and advancements in Timor-LesteChallengesKey advancementsBasic literacy Persistent low literacy in rural areas and among older adults Significant disparities between urban and rural literacy rates Linguistic diversity complicates education delivery High dropout rates in rural areas due to economic and logistical issues in accessing educational facilities Teacher shortages,outdated curricula and limited educational resources Steady improvement in literacy since independence in 2002 Adult literacy rate reached 70%by 202060 Youth literacy(ages 1524)is more than 85aDigital literacy Low-to-moderate digital literacy 62 Urban-rural digital divide in access to technology and the internet Limited digital content in local languages63 Reliance on foreign languages(Bahasa Indonesia,English)for online resources64,65 Access to digital technologies expanding,especially in urban areas Increasing use of mobile phones and mobile internet for news,social media and public services Need for digital upskilling recognised in both the public and private sector60 World Bank Data.Indicators.61 Ibid.62 UNCDF.(2023).Assessing Digital and Financial Literacy in Timor-Leste:A Survey on Knowledge,Skills and Access.63 GSMA Mobile Connectivity Index.Timor-Leste:Index Score 2023.See Content and Services.64 Love Frankie,The Asia Foundation and Oxfam.(2022).Digital Youth in Timor-Leste.65 Timor-Lestes National Strategy for Digitalisation and ICT(Timor Digital 2032),stated an ambition to prioritise the roll-out of a national digital and ICT skills programme/scheme in 2024,with the aim of developing digital skills across the board,from policymakers and technical staff to civil society organisations and citizens.See Timor Digital 2032.22Strengthening Climate Adaptation and Resilience with Climate Tech3.3 Policy and regulationsEnabling policies66 Ibid.67 See:Timor-Leste National Climate Change Policy(2022).68 European Union.(January 2024).European Union releases 1 million Euros to Timor-Lestes Government to support Decentralisation.Timor-Leste offers an enabling policy environment for both climate adaption and digitalisation.The national digital policy,Timor Digital(2032),66 articulates a commitment to strengthen basic digital public infrastructure,including providing citizens with unique digital IDs.It also identifies as a strategic priority providing access to digital government services via numerous channels,including mobile phones and“one-stop shop”digital services at the Suco(village)level,with service desks that enable connections to the government,NGOs,development partners and markets,powered by solar energy in off-grid locations.In a country where individual and household access to smartphones and the internet are limited,this is an effective way to reach communities with digital solutions.Increased access to digital services will indirectly benefit climate adaptation strategies to manage natural hazards,agriculture and health by reaching more people and supporting citizens through online channels.In addition to Timor Digital(2032),Timor-Leste has specific strategic priorities for climate adaptation and resilience in the National Adaptation Plan(2021)and National Climate Change Policy(2022).The National Climate Change Policy(2022)67 identifies key climate-related challenges that include rising temperatures and sea levels and erratic rainfall,which lead to floods and droughts,as well as mitigation and adaptation strategies to deal with these challenges.These policies are supplemented by Timor-Lestes Nationally Determined Contributions(20222030),which focus on reducing greenhouse gas emissions,and the Green Climate Fund(GCF)Country Programme(20222030),which prioritises renewable energy and sustainable infrastructure.Collectively,these policies and initiatives provide a positive policy environment for climate adaptation and resilience in the country.However,the lack of a national climate change strategy and action plan is a critical gap.A plan is needed to operationalise the objectives of the National Climate Change Policy(2022)and the National Action Plan(2021)at municipal levels,given ongoing decentralisation in the country.68 In addition,a roadmap for integrating climate tech in climate adaptation and resilience initiatives would help accelerate adaptation via digital tools.23Strengthening Climate Adaptation and Resilience with Climate TechImplementation challenges69 UNDP.(November 2021).National Adaptation Plans in focus:Lessons from Timor-Leste.70 In the Global Cybersecurity Index,46 countries are categorised as Role-Modelling(T1),reflecting the highest level of cybersecurity development;29 countries are listed as Advancing(T2);49 as Establishing(T3),56 as Evolving(T4);and 14 as Building(T5),including Timor-Leste.See:ITU.(2024).Global Cybersecurity Index 2024.71 Digital Frontiers DAI.(2023).Success story:ATLATL A TRUSTED TECHNICAL ENGAGEMENT:Spearheading Legislation for Timor-Lestes ICT Sector.Climate adaptation and resilience initiatives in Timor-Leste involve several government bodies with intersecting responsibilities,creating institutional complexity and implementation challenges.The State Secretariat for the Environment,under the Ministry of Economic Affairs,leads the coordination of national climate actions and engagement with the United Nations Framework Convention on Climate Change(UNFCCC).The Ministry of Agriculture and Fisheries also plays a key role,especially in adaptation measures related to food security and rural livelihoods.Technical expertise is provided by the Department for Climate Change and Energy Efficiency,while other agencies,such as the National Directorate for Climate Change(NDCC),support sectoral planning,including the development of the National Action Plan.Despite these institutional arrangements,climate governance is hampered by unclear mandates,overlapping roles and limited resources,limiting the coherence and effectiveness of climate policy implementation.69Policy gapsTo advance digitalisation for sustainable development and climate resilience,robust data privacy and protection laws,along with strong cybersecurity measures,are essential.While Timor-Lestes Constitution(2002)guarantees every citizen the right to privacy,the absence of a data privacy and protection law is a significant gap in the countrys digital transformation.Lack of cybersecurity measures is also a key challenge in Timor-Leste and a growing concern as the government advances e-government services.According to the International Telecommunication Union(ITU)Global Cybersecurity Index(GCI 2024),which measures the commitment of countries to cybersecurity across five pillars legal,technical,organisational,capacity development and cooperation Timor-Leste is categorised at a nascent stage.70To address these gaps,the Advancing Timor-Lestes Autonomous Telecommunications Landscape(ATLATL)initiative,supported by USAID and implemented by DAI as a technical partner,drafted a data privacy and protection law in 2023,which is not yet implemented.Additionally,in collaboration with the Government of Timor-Leste,ATLATL developed a National Cybersecurity Strategy,71 which has been officially adopted by the Council of Ministers.24Strengthening Climate Adaptation and Resilience with Climate Tech3.4 Financing for climate adaptation72 See:About GCF.73 Green Climate Fund:Democratic Republic of Timor-Leste.74 Green Climate Fund.(2024).Readiness Proposal:Timor-Leste.Like many SIDS,Timor-Leste faces financing constraints for climate adaptation and resilience initiatives.With competing national priorities like healthcare,education and basic infrastructure development,climate adaptation vies for limited government resources in a tight fiscal environment.The countrys heavy dependence on declining oil revenues further limits domestic financing capacity for climate adaptation and resilience.Timor-Leste has partnered with numerous development organisations on climate-related projects,including the Asian Development Bank(ADB),United Nations Development Programme(UNDP),United Nations Environment Programme(UNEP),Japan International Cooperation Agency(JICA)and the European Union(EU).However,total climate finance is not enough to meet climate adaptation needs.Financing from the Green Climate Fund As the worlds largest dedicated climate fund,the Green Climate Fund(GCF)provides funding through grants,concessional debt,guarantees and equity instruments,leveraging blended finance mechanisms to attract private investment across LMICs.72Since the GCFs first investment in Timor-Leste in 2019,four projects have been approved totalling USD 65.3 million.73 While this demonstrates successful engagement with the GCF,Timor-Lestes approval rate and funding volume remain below regional averages,highlighting persistent access barriers that limit the countrys ability to compete with institutionally stronger nations for available resources.Challenges in accessing fundingGovernment agencies often lack technical expertise,including in project design,financial structuring and monitoring systems required to apply for international climate finance.Weak interministerial coordination further complicates project alignment with national climate priorities and creates inefficiencies in the preparation of project plans for funding applications.The country has applied to the GCF for capacity building support to improve its ability to apply for climate financing.74In addition,Timor-Lestes mountainous terrain and dispersed communities increase both project implementation costs and the complexity of monitoring,making climate adaptation projects more expensive than comparable initiatives in countries with better infrastructure and geographic accessibility.These higher costs make Timor-Leste less competitive for internationally funded projects that prioritise cost-effectiveness.Finally,low private sector capacity and minimal foreign direct investment(FDI)in climate-related sectors have limited the development of bankable projects and blended finance opportunities.The absence of appropriate incentive structures like tax incentives,risk guarantees or public-private partnerships(PPP)further deter private sector climate investment.25Strengthening Climate Adaptation and Resilience with Climate Tech3.5 Governance and institutional capacityPublic sector challenges75 Ibid.76 Ibid.77 Department of Foreign Affairs and Trade.(2018).Review of Australias contribution to private sector development in Timor-Leste.78 In a landmark move to strengthen innovation and advance digitalisation,the Oecusse Digital Centre has recently been granted free trade zone status,in a move to foster innovation and promote e-commerce and incentivise online global trade.See:Business Insider.(25 December 2024).Oecusse Digital Centre Granted Free Trade Zone Status and Oecusse International Company Registry Officially Established.Timor-Leste faces significant challenges in terms of public sector capacity.While the country has made notable strides since independence in 2002,it still struggles with limited human resources,underdeveloped infrastructure and weak governance frameworks.Many government institutions face difficulties in fulfilling their mandates due to a lack of technical expertise and insufficient institutional coordination,which affect the delivery of essential public services.These challenges also affect the implementation of climate adaptation and resilience projects.Timor-Lestes public sector would benefit from capacity building in climate risk assessments and in understanding the impacts of climate change at the local level,both of which would support data-based adaptation and resilience efforts.A major barrier is the lack of funding for education and training in climate resilience strategies and projects for government officials,which hinder the development of expertise necessary for climate-related initiatives.75 Another key issue is the lack of information from sucos and municipalities on the local impacts of climate change,which leaves government agencies poorly informed and exacerbates the challenges of planning and implementing appropriate climate adaptation and resilience measures.76Private sector developmentPrivate sector development is still in early stages.A review of public sector development led by the Australian government in 2018 identified several systemic barriers,including the absence of enabling policies for small businesses,poorly defined land rights that prevent land from being used as collateral for business financing,a shortage of skilled labour and limited access to markets,particularly in remote areas.77 These challenges are especially pronounced in the information and communication technology(ICT)sector,a key enabler of digitalisation,where private sector growth is hindered by inadequate connectivity infrastructure,an unclear policy environment,a lack of business-friendly regulations,limited digital literacy and limited access to financing.78 Low private sector development,in turn,limits the capacity of companies to fill the financial and technical capacity gaps to drive innovation in climate adaptation and resilience.26Strengthening Climate Adaptation and Resilience with Climate Tech04.Anticipate,Adapt,Absorb:How climate tech can support adaptation and resilience in Timor-Leste4.1 Extreme weather events and natural hazards 4.1.1 Timor-Lestes vulnerability to climate change79 El Nio is the warming of sea surface temperature that occurs every few years,typically concentrated in the central-east equatorial Pacific.An El Nio is declared when sea temperatures in the tropical eastern Pacific rise 0.5C above the long-term average.El Nio is felt strongly in the tropical eastern Pacific with warmer than average weather.See:UK Met Office.(n.d.).What are El Nio and La Nia?80 ACAPS.(13 May 2024).Timor-Leste:Humanitarian impacts of El Nio-related drought and heat.Briefing Note.81 Ibid.82 Ibid.Situated between two tectonic plates and along the Pacific“Ring of Fire,”Timor-Leste faces significant risks from earthquakes and tsunamis.Its tropical climate is also heavily influenced by the West Pacific Monsoon and the El Nio-Southern Oscillation(ENSO),79 which can cause dramatic variations in annual rainfall sometimes by as much as 50%and alter the timing of peak rainfall.This variability was evident during the November 2023 to May 2024 rainy season,when El Nio led to above-average temperatures and irregular rainfall.From October 2023 to January 2024,precipitation levels fell more than 30low average and,by mid-February,drought conditions were detected in 10 of the countrys 14 municipalities.80 The resulting drought and heat led to crop failures,livestock deaths and water shortages,exacerbating livelihood challenges and increasing food insecurity,malnutrition and water,sanitation and hygiene(WASH)needs.In early 2024,the Assessment Capacities Project(ACAPS),an international NGO that provides international humanitarian analysis,projected a 60%likelihood of La Nia developing in Timor-Leste between June and August 2024.81 La Nia typically brings increased rainfall and a heightened risk of flash floods.The transition from El Nio to La Nia was expected to bring both dry conditions and extreme rainfall events simultaneously,alongside above-average temperatures.While increased rainfall would serve to alleviate drought,it would also increase the risk of landslides and flash floods,which would lead to more crop losses,contaminate water sources and further strain livelihoods and WASH infrastructure.82In this already fragile context,climate change is intensifying Timor-Lestes vulnerability to extreme weather events,especially hydrometeorological hazards.Rising global temperatures are worsening climate variability,increasing the frequency and severity of extreme weather patterns.Changes in temperature are projected to further disrupt rainfall distribution,leading to heavier downpours during the wet season and prolonged dry spells in the dry season,exacerbating both flood and drought risks.Additionally,rising sea levels pose a significant threat to coastal communities by increasing the risk of inundation,damaging critical infrastructure and endangering agriculture,health and food security.65%of Timor-Lestes population live in low-lying coastal areas and are exceptionally vulnerable to the impacts of climate change.28Strengthening Climate Adaptation and Resilience with Climate Tech4.1.2 Climate tech solutions 83 World Meteorological Organization:Early Warning System.84 United Nations:Early Warnings for All.85 The GSMA has catalysed the role of the mobile industry in EWS for several years and immediately took a leadership role in the Early Warnings for All initiative through the GSMA Mobile for Humanitarian Innovation programme,which is funded by the UK Foreign,Commonwealth&Development Office.The GSMA is part of the ITU-led Pillar 3:Warning dissemination and communication.See:GSMA.(2024).Mobile Enabled Early Warning Systems:The GSMA and the Early Warnings for All initiative.Category:AnticipateEarly warning systemsEarly warning systems(EWS)are a critical adaptive measure for coping with the impacts of extreme weather events and reducing the risks of natural hazards.EWS provide advance notice of potential extreme weather events and natural disasters,allowing communities and authorities to prepare and minimise loss and damage.Research indicates that issuing an early warning even 24 hours in advance can reduce the impact of a natural hazard by up to 30%,highlighting the importance of timely alerts.83Traditionally,EWS have relied primarily on meteorological data collected by national meteorology departments and have used conventional dissemination methods for alerts,such as loudspeakers,sirens,television and radio.However,due to the limited data available,the accuracy and granularity of the data and delays in obtaining it,these systems can fail to predict hazards with sufficient accuracy and enough in advance to reach people in time and prevent significant loss.In 2022,UN Secretary-General Antnio Guterres launched the Early Warnings for All(EW4All)initiative,which aims to ensure that everyone in the world is protected from hazardous weather,water or climate events through an EWS(Figure 8).84,85 The GSMA is a key partner of the EW4ALL initiative.Climate tech offers significant advantages over traditional EWS for detecting,preparing for and responding to extreme weather events and natural hazards.Key technologies and use cases are captured in Table 3 and categorised by the ease of adoption in Timor-Leste and similar contexts,based on the complexity of implementation and resources required(for an explanation of the full criteria,see Annex 1).Figure 8:The four pillars of the Early Warnings for All initiativePILLAR 01Disaster Risk KnowledgePILLAR 02Observations,Monitoring,Analysis,ForecastingPILLAR 04Preparedness&Response CapabilitiesPILLAR 03Warning Dissemination&CommunicationSource:Early Warnings for All29Strengthening Climate Adaptation and Resilience with Climate TechTable 3:Key climate tech use cases for early warning systems and ease of adoption in Timor-LesteTechnologyUse caseEase of adoptionImplementation considerationsFeature phones(SMS/Voice)SMS/voice alerts for extreme weather events;Emergency instructions;Citizen reporting on hazardous or disruptive conditions(blocked roads,flooding)High Works with existing mobile infrastructure Low technical barriersData collection platforms (e.g.for crowdsourced data such as OpenStreetMap,86 Ushahidi87)Citizen reporting of real-time hazard data(blocked roads,flood zones);Enhanced situational awareness at the community levelMedium-High Useful for engaging communities and integrating local knowledge in EWS Requires periodic internet access to sync data Can function offline for data collectionSmartphone appsWeather alerts Community evacuation planning Hazard reportingMedium High smartphone penetration Poor connectivity limits real-time features Offline-first design essential Data costs could be a barrierIoT sensors Real-time monitoring of natural hazards Automatic alerts and warnings when thresholds exceededMedium Can be solar powered to overcome electricity issues Requires local maintenance capacity Moderate equipment costsRemote sensing(satellite imagery analysis)Large-scale monitoring of droughts,floods,deforestationMedium Free satellite data available Requires GIS skills and institutional capacity Limited by poor connectivity for data access Government/institutional implementationDigital data integration platformsClimate,geographic and demographic data integration for cross-sector decision-makingMedium-Low Valuable for interagency coordination Requires stable internet and IT capacity Institutional use primarily 86 OpenStreetMap is an open-source platform that enables the creation of detailed geographic data in areas with incomplete mapping.See:Open Street Map website.87 Ushahidi is a platform that aims to empower people through citizen-generated data to develop solutions that strengthen their communities.See:Ushahidi website.30Strengthening Climate Adaptation and Resilience with Climate TechTechnologyUse caseEase of adoptionImplementation considerationsWeather radar systemsMeteorological hazard forecastingMedium-Low High equipment and maintenance costs Requires meteorological expertise Complex technical requirements Government-level implementationGIS and Digital twinsHazard scenario simulation;Risk exposure mapping;Strategic planning toolLow High strategic value Requires trained personnel and institutional buy-in Consistent connectivity requirements Long-term capacity building neededDrones/Unmanned aerial vehiclesHigh-resolution imagery for hazard monitoring;Post-disaster damage assessmentLow Ideal for remote mountainous areas High equipment costs Regulatory considerations Limited local maintenance capacity Connectivity dependent for data transferAI-powered computer visionCamera-based detection of hazards such as landslides,shoreline erosionLow Technically complex Requires high-speed connectivity Best piloted with external technical support Very high data requirementsAI and Machine LearningLarge dataset analysis for improved hazard forecasting(e.g.cyclone paths,drought onset)Low Needs extensive data pipelines and computing resources Long-term institutional capacity required High cost These technologies offer a data-driven approach to early warnings,significantly improving the timeliness,accuracy and inclusiveness of responses to climate-related hazards in vulnerable areas.31Strengthening Climate Adaptation and Resilience with Climate Tech4.1.3 Climate tech initiatives for early warning systems in Timor-Leste88 Learn more at:Mercy Corps Timor-Leste.89 See:Similie website.90 To date,the system has identified more than 20 flash flood events,benefitting more than 300,000 people.Dilis Early Warning System:From Setup to Alerts,see more here91 UNDP.(October 2024).Catalogue of Winners:ASEAN Blue Innovation Challenge.92 See:Open Street Map website.93 Humanitarian OpenStreetMap.(n.d.).Anticipatory Mapping for Climate Resilience in Timor-Leste.94 See:Kobo Toolbox website.95 Humanitarian Data Exchange:Timor-Leste Anticipatory Mapping.96 The Australian Red Cross and Red Cross Red Crescent Climate Centre are supporting CVTL in developing an Early Action Protocol(EAP)based on this anticipatory mapping.An EAP is an initiative by the Red Cross that aims to mitigate the impact of predicted events such as typhoons,floods or droughts by enabling the release of funding to execute pre-agreed early action before an extreme weather event or natural disaster.See:Netherlands Red Cross.(n.d.).Early Action Protocol Development.97 UNEP.(11 August 2023).An early warning system for disasters takes shape in Timor-Leste.Climate tech is already being trialled in Timor-Leste for the monitoring of extreme weather events and natural hazards.For example,in 2020,the government launched an EWS in the capital,Dili,to enhance flood detection and improve disaster preparedness.In 2023,a short-term anticipatory mapping project was conducted using OpenStreetMap to identify areas prone to landslides and floods in some of the most vulnerable areas.Funded by the GCF,UNEP is currently supporting the development of a multi-hazard EWS that is expected to benefit more than a million people in Timor-Leste.These examples are detailed below.Early warning systems for floods in DiliIn 2020,the Government of Timor-Leste,the global humanitarian organisation Mercy Corps88 and Similie,89 a tech startup based in Timor-Leste,launched an EWS for flood warnings in Dili.Under this initiative,17 hydrometeorological stations were deployed to collect real-time data on rainfall,water levels in the river,temperature,soil moisture and other environmental variables.The data is transmitted to Similies EWS platform for real-time data analysis,and when a parameter surpasses predefined thresholds,alerts are sent to government agencies that then disseminate warnings to at-risk communities in the capital.90 Through the ASEAN Blue Innovation Challenge(ABIC 2024),91 Similie is now developing a mobile app to deliver early warnings directly to communities across Timor-Leste.Five hundred people have been enrolled to trial the service,with plans for nationwide expansion after successful completion of the pilot.Anticipatory risk mappingIn 2023,the Red Cross Climate Centre,Timor-Leste Red Cross and the Humanitarian OpenStreetMap Team conducted a mapping activity of areas vulnerable to floods and landslides in Timor-Leste using OpenStreetMap(OSM).92,93 Using GIS,a national multi-hazard assessment identified four priority locations to map.The teams then used Kobo Toolbox,94 a global open-source data collection platform,and SketchMap,which digitalises paper maps,to add annotations from communities such as key infrastructure and historical flood events,to better assess the impacts.1,760 buildings were documented in four pilot areas,and the data has been shared on the Humanitarian Data Exchange(HDX),an open platform for sharing data on humanitarian crises and emergency responses across humanitarian organisations.95,96Multi-hazard early warning systemIn one of four climate adaptation and resilience projects funded by the GCF in Timor-Leste,UNEP is developing a national multi-hazard early warning system(MHEWS)set for completion by 2027.As part of the project,which was initiated in 2022,UNEP is deploying eight automatic weather stations(AWS)in different municipalities,as well as doppler radar and ocean sensors to improve climate monitoring and forecasting for a range of hazards,including floods,heatwaves,cyclones and storm surges.A national multi-hazard forecasting centre is also to be established.97 One of the aims of the project is to integrate early warning information from multiple sectors,including agriculture,health and coastal management,to create a more comprehensive EWS.Once complete,the MHEWS could significantly improve climate adaptation and resilience to multiple natural hazards in Timor-Leste.32Strengthening Climate Adaptation and Resilience with Climate Tech4.1.4 Lessons from comparable contexts98 FemLINK Pacific.(28 January 2019).Innovation Station:Womens Weather Watch,Fiji.ActionAid Australia.99 UN Women.(2022).Inclusive and accessible multi-hazard early-warning systems.As Timor-Leste develops an EWS for climate adaptation and resilience,the experiences of Pacific Island nations and comparable contexts that are further ahead in the development of these systems offer valuable lessons for leveraging climate tech effectively.The following examples demonstrate how digital tools can be strategically deployed to overcome the geographic,infrastructure and resource constraints that Timor-Leste faces,while extending coverage to remote populations and building community ownership and buy-in.Category:AnticipateA multi-channel approach to the dissemination of early warningsWomens Weather Watch:gender-responsive EWS in Pacific SIDSWomens Weather Watch(WWW)is a community-based EWS in the Pacific Islands,designed to ensure womens voices and needs are central to responses to extreme weather events and natural hazards.This initiative emerged under femLINKpacific,a non-profit media and policy network based in Fiji,following interviews with women affected by severe flooding in Fiji in 2004,which revealed that although women had played vital roles in the response,they had never been consulted about their experiences.98WWW aims to strengthen EWS by empowering women to lead preparedness efforts in their communities.Women leaders in the network receive and communicate early warnings through SMS and other communication channels.The early warnings enable them to take critical preparedness actions,such as securing homes,storing food and water,relocating vulnerable individuals and disseminating warnings throughout their communities.The women also engage directly with national disaster management offices and meteorological services to communicate local conditions and needs.The initiative expanded from Fiji to Papua New Guinea and Vanuatu,and has proven effective during events like Tropical Cyclone Harold in Vanuatu,where WWW enabled faster,more coordinated community responses.It promotes gender-responsive action by facilitating womens participation in climate and disaster risk reduction(DRR)dialogues and enabling women to organise and lead humanitarian responses.With increasing connectivity and widespread access to mobile phones,WWWs communication tools have expanded beyond an original focus on community radio.While radio remains a vital channel,the system now incorporates multi-channel communication,including social media,bulk messaging apps and SMS alerts.This multi-channel approach allows for real-time,two-way communication:communities receive alerts and can also share updates.WWW also has a disaster impact assessment tool that can be accessed from a desktop or mobile device.99Women Wetem Weta(WWW)is a disaster preparedness initiative and EWS in Vanuatu,designed to keep rural and remote communities informed during humanitarian crises.Launched in 2019,it was inspired by Fijis Womens Weather Watch.The system enables a core network of women leaders to share real-time disaster information through bulk SMS messages in their local language,ensuring communities receive timely warnings of cyclones,tsunamis and floods.33Strengthening Climate Adaptation and Resilience with Climate TechCategory:AnticipateUsing mobile phones to extend the reach of early warning systems MACRES:a mobile-first approach in Tonga100 A funding initiative supporting early warnings in SIDS and countries designated as least-developed countries(LDCs)by the UN based on official development assistance(ODA).CREWS projects are implemented by the United Nations Office for Disaster Risk Reduction(UNDRR),the World Bank Global Facility for Disaster Reduction and Recovery(GFDRR)and the World Meteorological Organization(WMO).Learn more here.101 World Meteorological Organization.(13 October 2022).Tonga boosts early warnings through smartphones.102 Everbridge(17 September 2024).Island Country of Tonga Partners with Everbridge to Enhance Multi-Hazard Early Warning Systems&Response.103 Cell broadcast is a method of simultaneously sending alerts via mobile phones to multiple mobile phone users in a defined area,and are used for public emergency warnings.See:Parsons,O.and Hamilton,Z.(2023).Cell Broadcast for Early Warning Systems.A review of the technology and how to implement it.GSMA.104 Ibid.105 In 2024,Tonga also acquired new weather radar,which will help the TMS warn local communities of incoming severe weather so they can prepare.The radar technology provides detailed information on location and intensity of rainfall,thunderstorms and tropical cyclones that affect Tonga.This initiative is part of a range of activities planned under the Weather Ready Pacific Program across the Pacific Islands region.The Kingdom of Tonga has been working to enhance its early warning dissemination systems following the 2022 volcanic eruption and tsunami,which caused widespread destruction and exposed critical gaps in reaching communities in time.While Tonga had already been using Facebook for early warning dissemination before 2022,the disaster highlighted the need for more effective and inclusive alert mechanisms.With funding from the Climate Risk and Early Warning Systems(CREWS)Accelerated Support Window,100 the Kingdom of Tonga developed the Mobile Applications Community and Response System(MACRES),101 with the Tonga Meteorological Services and the World Meteorological Association(WMO),playing a key role.The mobile app is designed to deliver multi-hazard early warnings to improve disaster resilience.The app addresses gaps in the dissemination of alerts by delivering timely,accessible early warnings on mobile phones through visual and user-friendly features,ensuring that critical information reaches a broad audience,including persons with disabilities.The app also enables real-time hazard reporting and damage assessments from communities to national authorities,creating an information flow that strengthens the EWS.In 2024,with funding from the World Bank under the EW4All initiative,Tonga partnered with Everbridge,a US-based critical event alert technology company,102 to improve the dissemination of early warnings.Everbridge will deploy its cell broadcast technology,103 allowing alerts to be sent directly to all smartphone users without the need for an internet connection or opt-in,ensuring wider reach during emergencies.104,10534Strengthening Climate Adaptation and Resilience with Climate TechCategory:AnticipateLessons from more advanced multi-hazard early warning systems in similar contexts A comprehensive multi-hazard early warning system:Vanuatus Van-KIRAP106106 SPREP.(25 July 2024).Van-KIRAP a cornerstone for climate resilient development in Vanuatu.107 See:Vanuatu Climate Change Finance Review.108 Government of Vanuatu.(2024).Vanuatu National Statement on Climate and Tropical Cyclone Seasonal Outlook for 2024/2025 Season.109 Van-KIRAP is implemented by the Secretariat of the Pacific Regional Environment(SPREP),the Vanuatu Meteorology and Geohazard Department(VMGD),the Commonwealth Scientific and Industrial Research Organisation(CSIRO),National Groundwater Information System Australia(NGIS)and Frontier SI,an Australian research and product development social enterprise.FrontierSI provides the connections and collaborative model for its network to access,develop and apply space and spatial research,development and innovation project outcomes into impactful solutions.See more here.110 Vanuatu Meteorology&Geo-hazards Department:ClimateWatch App.Vanuatu.Like Timor-Leste,Vanuatu experiences extreme climate variability and has suffered severe impacts from extreme weather events.Tropical Cyclone Pam in 2015,for example,caused damage equivalent to 64%of the countrys GDP.107 More recently,an earthquake in December 2024 claimed 14 lives.108 Vanuatus Van-KIRAP initially a five-year project(20202025)that has been extended to 2027 and funded by the GCF109 and has been developed and implemented by a number of partners including the Vanuatu Meteorology and Geo-Hazards Department(VMGD)and the Secretariat of the Pacific Regional Environmental Program(SPREP),provides a highly relevant and more comprehensive model for a multi-hazard early warning system(MHEWS)in Timor-Leste.Whereas Timor-Lestes MHEWS is still under development,Van-KIRAP is operational and more extensive in scope.It integrates a range of technologies,including AWS that transmit real-time data from remote,disconnected areas,helping to overcome the challenge of monitoring microclimates across Vanuatus varied terrain.These are supported by automated rain gauges and a weather radar system that feeds into the national preparedness system.A particularly relevant innovation is the integration of traditional ecological knowledge with modern tools,most notably through the ClimateWatch mobile app.110 This app enables community members with smartphones to record observations of traditional weather indicator species,contributing valuable Indigenous knowledge to the prediction of extreme weather events and natural hazards,turning them into citizen scientists.In Timor-Leste,where tara bandu,the customary regulation or law established by communities at the village level to address social and environmental issues,especially for the sustainable use of resources,remain strong,this model offers a way to digitally capture and integrate traditional,community-based knowledge with modern,tech-enabled data.Van-KIRAP also offers the Climate Futures Portal,which provides accessible climate projections to decision-makers in government,industry and communities.The platform provides tools to support planning in agriculture,infrastructure,fisheries,tourism and water management.In Timor-Leste,where institutional capacity is still being strengthened,such a tool could significantly enhance cross-sectoral decision-making and evidence-based planning.From an implementation perspective,Van-KIRAP exemplifies best practice in inclusive governance.The project established multi-sectoral working groups bringing together actors from meteorology,agriculture,fisheries,tourism,infrastructure and civil society ensuring that climate information services are comprehensive.For Timor-Lestes MHEWS,creating similar cross-sectoral governance early in the project cycle would be beneficial,particularly given its focus on multiple sectors.Additionally,while Timor-Lestes MHEWS currently focuses on hazard detection and alert dissemination,Van-KIRAP has gone further by embedding climate information services in sectoral decision-making.This makes it even more relevant not only for emergency response,but also for long-term planning.The projects use of interactive geospatial mapping tools and step-by-step hazard assessment guides has made complex data and processes accessible to non-experts.As Timor-Leste develops its MHEWS,adopting similar user-friendly digital interfaces could significantly increase the usefulness of the system.Finally,Van-KIRAP demonstrates the value of investing in human capital alongside digital infrastructure.The projects extension phase is dedicated to ensuring that staff at the Vanuatu Meteorology and Geo-hazards Department receive extensive training to independently manage and maintain radar and monitoring equipment.This emphasis on sustainability is a crucial lesson for Timor-Leste if its MHEWS is to become an effective long-term EWS.35Strengthening Climate Adaptation and Resilience with Climate TechCategory:AnticipateDeveloping community-based EWS111 See Loughborough University website:Low-cost landslide early warning system.112 Ibid.113 Shakya,S.and Sanyal,S.(2025).In southern Nepal,13 municipalities unite to fund Community-Based Flood Early Warning System.ICIMOD Blog.Given Timor-Lestes unique context of microclimates,remote communities,varied topography and vulnerability to multiple hazards,community-based early warning systems(CBEWS)can provide complementary capacity to national MHEWS systems.These localised systems enable communities to actively engage in risk identification,monitoring and response planning while building local ownership and sustainability.Community-based systems generally incorporate high-tech,low-tech and traditional tools to ensure maximum reach and inclusion.They are inherently people-centred,more cost-effective and provide real-time alerts to reach populations that are extremely remote,dispersed and disconnected communities that national systems may not be equally suited to reach.Community-based landslide EWSLow-cost landslide monitoring sensors,such as the Community Slope SAFE acoustic sensors developed by Loughborough University in the UK111 and tested in Myanmar,demonstrate how tailored tech solutions can address specific local natural hazards and involve communities in the operation and maintenance of these systems.The sensors,designed specifically for low-resource settings,can“hear”developing landslides and provide visual and audio early warnings to communities.112 Given Timor-Lestes mountainous terrain and high vulnerability to landslides,such a solution could provide life-saving alerts at the local level,complementing a national monitoring system.Community-based flood early warning systemsCommunity-based flood early warning systems(CBFEWS)have been in development in Nepal for more than a decade.In 2023,the International Centre for Integrated Mountain Development(ICIMOD)conducted a comprehensive flood risk assessment in Nepals southern Madhesh Province,focusing on communities living along the flood-prone Lal Bakaiya river.113 The region,like many in Timor-Leste,faces seasonal flooding that endangers lives,infrastructure and livelihoods.ICIMOD engaged 13 municipalities in Rautahat District to assess vulnerabilities,conduct flood modelling and determine the need for a CBFEWS.It then developed a CBFEWS using connected rainfall sensors and river gauges that upload data in real time to a monitoring centre and can trigger automated alerts,as well as transmit the data in real time to at-risk downstream communities via mobile phone(Figure 9).36Strengthening Climate Adaptation and Resilience with Climate TechFigure 9:Community-based flood early warning system in NepalData acquisition unitData upload unitWater level sensorGSM alarm unitRemote accessDownstreamUpstreamSource:ICIMOD114114 Ibid.115 Ibid.A key part of developing the CBFEWS was building multi-stakeholder cooperation.Municipal leaders,local officials and community representatives jointly agreed to establish a shared fund for the maintenance and operation of the system.Each municipality pledged an annual contribution of approximately$750 to support caretakers,basic equipment maintenance and training for early warning dissemination and response.115The Lal Bakaiya CBFEWS design is based closely on the four pillars of the EW4All initiative:Risk knowledge:Mapping flood-prone zones and community vulnerabilities Monitoring and forecasting:Installing river gauges and integrating rainfall data Warning communication:Establishing alert protocols using SMS,sirens and local volunteers Preparedness and response:Training community members and conducting simulation drillsThe ICIMOD project also highlights the importance of ensuring sustainability,including local ownership,financial viability and institutional support,such as legal agreements between municipalities and capacity building for long-term governance.Like Nepal,Timor-Leste experiences frequent flooding that affects remote and rural communities.Given its exposure to climate-related hazards,Timor-Leste could adapt this model by identifying high-risk rural areas,piloting CBFEWS in flood-prone sucos(villages)and fostering collaboration between municipal authorities,the Civil Protection Authority and community-based disaster management committees to build community-based systems.Lessons from Nepals experience include building sustainable local EWS through pooled financing and establishing clear governance frameworks,embedding low-tech and cost-effective solutions in resource-limited settings and involving the local community to manage and build trust in the system.37Strengthening Climate Adaptation and Resilience with Climate TechBox 1:Monitoring coastal erosion using satellite data in Pacific SIDSWith a coastline of more than 700 km,Timor-Leste is highly vulnerable to coastal erosion,flooding and saltwater intrusion in freshwater sources.116 The main reasons for this vulnerability are rising sea levels from glacier melt and stereodynamics the combined effects of ocean warming and changing ocean currents driven by climate change contributing to rising and increasingly variable sea levels.117 The Pacific Community(SPC)has launched a new tool,Digital Earth Pacific(DE Pacific),that analyses vast amounts of satellite imagery ranging from decades-old Landsat data to near-weekly Sentinel data using advanced AI algorithms to detect environmental changes and generate practical maps.These AI-driven change detection models help monitor shifts in land use,coastal erosion,cyclone impacts and other dynamics across Pacific Island countries and territories.118 The tool is free and open digital public infrastructure that enables SPC member states to make more informed decisions.In Tuvalu,the DE Pacific coastline detection tool is using satellite imagery combined with sea level rise measurements to understand coastal erosion for data-driven policymaking.DE Pacific works with governments and technical teams to develop tools and services tailored to specific national needs.While Timor-Leste is not a member of the SPC due to its closer proximity to ASEAN nations,it benefits from engagement,knowledge sharing and technical assistance from the SPC community on certain projects,and there may be an opportunity to work with DE Pacific on monitoring coastal erosion to formulate data-driven climate adaptation and resilience policies and launch coastal protection initiatives.116 UN General Assembly.(1 August 2024).Remarks by H.E.Dionisio Babo Soares Permanent Representative of the Democratic Republic of Timor-Leste to the United Nations.102nd Plenary Meeting on the Draft Resolution and Decision concerning Sea-Level Rise.117 World Bank Climate Change Knowledge Portal:Timor-Leste Sea Level Rise.118 The Pacific Community(SPC).(n.d.).How SPCs Digital Earth Pacific harnesses Artificial Intelligence to revolutionise our understanding of the environment.38Strengthening Climate Adaptation and Resilience with Climate TechAdvancing the use of climate tech for early warning systems in Timor-Leste:Key insights Timor-Lestes efforts to strengthen EWS for climate adaptation and resilience can draw valuable insights from the initiatives described in this chapter.In terms of climate tech deployment for EWS,the country can benefit from multi-channel EWS that blend traditional tools like sirens and community radio with digital channels such as SMS and chat apps,as these have proven effective in reaching diverse and remote communities.Strong community engagement,especially in local CBEWS,can help promote adoption,trust and offer long-term sustainability while also being cost-effective.Early warnings on digital channels must be delivered in local languages and accessible formats to ensure maximum inclusion,and offline functionality is essential in rural areas with limited or unreliable connectivity.Top-down MHEWS should involve cross-sector stakeholders and offer ways to integrate local knowledge and involve local communities.Digital technologies alone will not create effective EWS.Success depends on building strong regional and national multi-stakeholder partnerships,sustainable funding mechanisms,local capacity building and community participation.Timor-Lestes limited engagement with regional cooperation bodies,unlike Pacific SIDS that benefit from collective initiatives,makes it even more important to build these partnerships as it advances the use of climate tech for EWS.With impending entry into ASEAN,Timor-Leste may be better positioned to leverage regional cooperation to strengthen its early warning initiatives.39Strengthening Climate Adaptation and Resilience with Climate TechThe GSMA is a key partner in the Early Warnings for All(EW4All)initiative.Beyond its global advocacy efforts to ensure universal access to early warning systems,the GSMA has also provided grant funding supported by the UK Foreign,Commonwealth&Development Office(FCDO)to several organisations working to expand and enhance early warning capabilities:Action Aid:Grant to adapt and improve the national EWS 1294 system in Cambodia119Buraq Integrated Solutions:Grant to strengthen mobile-enabled early warning systems for anticipatory action in Pakistans northern mountain ranges120Tearfund:Grant to support the provision of weather forecasting data and agricultural extension advice to farmers in Ethiopia,as well as parametric insurance121NAXA:Grant to scale an anticipatory action platform in Nepal for floods,profiling the disaster risk of households in the pilot region and issuing cash assistance to impacted communitiesPeople in Need:Grant to strengthen EWS by leveraging IoT and mobile tech for anticipatory action in the Philippines122Rumsan Associates:Grant to support blockchain-powered anticipatory action and cash assistance in Nepal123Trans-African Hydro-Meteorological Observatory(TAHMO):Grant to strengthen EWS in Ghana through multiple technologies124119 GSMA.(n.d.).ActionAid Cambodia.120 GSMA.(n.d.).Buraq Integrated Solutions.121 GSMA.(n.d.).Tearfund.122 GSMA.(n.d.).People in Need.123 GSMA.(n.d.).Rumsan Associates.124 GSMA.(n.d.).TAHMO.40Strengthening Climate Adaptation and Resilience with Climate Tech4.2 Agriculture and food security 4.2.1 The impact of climate change on agriculture and food security125 Global Hunger Index.(2024).Timor-Leste.126 World Bank Group and Asian Development Bank.(2021).Climate Risk Country Profile:Timor-Leste.127 Iyengar,K.(29 February 2024).Addressing Timor-Lestes Food Security and Nutrition.Development Asia.See more hereClimate adaptation and resilience in agriculture encompass strategies and practices designed to better manage the adverse effects of climate change on agricultural systems and ensure food security.It requires adjustments in farming methods to cope with climate-related changes,including rising temperatures,shifting precipitation patterns and extreme weather events.Agriculture is central to Timor-Leste,providing livelihoods and food and contributing to GDP(Figure 10).However,the country faces high food insecurity,with 60%of its food supply imported,including 45%of its staple crop,rice.While food insecurity is a widespread challenge in SIDS,Timor-Leste is particularly vulnerable.It ranks 104th out of 127 countries in the Global Hunger Index,125 and its food production is expected to be among the most affected by climate-induced shifts in rainfall patterns in Southeast Asia.126Figure 10:Role of the agricultural sector in Timor-Lesteof total employment in 2022(ILO)Agriculture contributes approximately of households engage in some form of subsistence agriculture(ADB)The agricultural sector is based primarily on crops,withAgriculture accounted for 39f%of GDPcoffee accounting for 90%of non-oil exportsSources:International Labour Organization(ILO)and Asian Development Bank12741Strengthening Climate Adaptation and Resilience with Climate TechDespite employing a significant proportion of the population,Timor-Lestes agricultural sector suffers from low productivity.Over the past decade,real GDP per capita in agriculture has declined by almost 20%,with major crops such as coffee,maize and rice experiencing significant reductions.128 The amount of cultivated land has shrunk by 35tween 2001 and 2020,while reliance on rainfall for irrigation makes crop cultivation highly unpredictable.129 Poor soil quality,steep mountainous terrain and post-harvest losses of 20%to 500 due to inadequate storage and pest damage,further weaken the sector.Smallholder farmers also face severe capital constraints,limiting their ability to invest in productivity-enhancing equipment and inputs.128 National Institute of Statistics.(February 2024).Agricultural GDP:Patterns and Trends.129 Ibid.At 6.5 cubic meters per capita of internal renewable water resources in 2018,Timor-Leste ranks 63 out of 180,which is considerably lower than countries in a similar context,such as Indonesia,Myanmar and Laos,which had 7.5,18.7 and 27 cubic meters per capita for the same period,respectively.130 Government of Timor-Leste and WFP.(2019).Fill the Nutrient Gap Timor-Leste.131 UN CERF.(2024).Timor-Leste:Drought,01 Jan 2024.132 WFP.(18 April 2024).Timor-Leste facing high food insecurity,latest report warns.Climate change is compounding these challenges.Erratic rainfall,prolonged droughts and rising temperatures increasingly threaten food security and rural livelihoods.In October 2023,the World Food Programme(WFP)reported that 22%of the population faced food scarcity.The UN Central Emergency Response Fund(CERF)estimated that 44%of families were experiencing moderate to severe food insecurity,while 54%lacked adequate water access rising to 70%in some areas.131 As noted earlier,in early 2024,Timor-Leste experienced 30%less precipitation due to El Nio,with 10 of 14 municipalities showing signs of drought.The WFP warned in April 2024 that continued climate-related disruptions would further threaten agricultural production and exacerbate food insecurity.1324.2.2 Climate tech for climate adaptation and resilience in agriculture and food securityClimate tech offers significant opportunities to strengthen climate adaptation and resilience in agriculture and food security across multiple dimensions,as captured in Table 4.In Timor-Leste,high climate variability makes agriculture unpredictable and risky.Using simple and easy-to-adopt digital technologies,especially agricultural climate advisory,and moving to more complex and resource-intensive technologies over time while learning from pilot projects(for example,experimenting with IoT sensors to measure soil moisture),offer a critical pathway for building climate resilience while supporting rural livelihoods.42Strengthening Climate Adaptation and Resilience with Climate TechTable 4:Climate tech use cases to support climate adaptation and resilience in agriculture and food security and ease of adoption in Timor-LesteTechnologyUse caseEase of adoptionImplementation considerationsFeature phonesSMS/IVR-based weather forecasts,market information and agricultural extension servicesCommunity-based data collection with farmers reporting crop conditions and pest outbreaks via SMSHigh Uses existing mobile networks Immediate value to farmers Suitable for low literacy and digital skills Integrates farmer knowledge and experience Smartphones Agricultural climate advisory to farmers on tailored appsDigital marketplaces where farmers can access crop prices and connect wi
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Task 12 PV SustainabilityPVPSReview of PVSustainability Standards2025Report IEA-PVPS T12-30:2025Task 12 PV Sustainability Review of PV Sustainability Standards What is IEA PVPS TCP?The International Energy Agency(IEA),founded in 1974,is an autonomous body within the framework of the Organization for Economic Cooperation and Development(OECD).The Technology Collaboration Programme(TCP)was created with a belief that the future of energy security and sustainability starts with global collaboration.The programme is made up of 6.000 experts across government,academia,and industry dedicated to advancing common research and the application of specific energy technologies.The IEA Photovoltaic Power Systems Programme(IEA PVPS)is one of the TCPs within the IEA and was established in 1993.The mission of the programme is to“enhance the international collaborative efforts which facilitate the role of photovoltaic solar energy as a cornerstone in the transition to sustainable energy systems.”In order to achieve this,the Programmes participants have undertaken a variety of joint research projects in PV power systems applications.The overall programme is headed by an Executive Committee,comprised of one delegate from each country or organisation member,which designates distinct Tasks,that may be research projects or activity areas.The IEA PVPS participating countries are Australia,Austria,Belgium,Canada,China,Denmark,Finland,France,Germany,India,Israel,Italy,Japan,Korea,Malaysia,Morocco,the Netherlands,Norway,Portugal,South Africa,Spain,Sweden,Switzerland,Thailand,Turkey,the United Kingdom and the United States of America.The European Commission,Solar Power Europe and the Solar Energy Research Institute of Singapore are also members.Visit us at:www.iea-pvps.org What is IEA PVPS Task 12?The goal of Task 12 is to foster international cooperation and knowledge sharing on the sustainable aspects of PV technology,emphasizing environmental and social factors.Its mission is to provide essential information to stakeholders,enhancing consumer and policy-maker confidence in PV systems,and thereby accelerating the shift towards sustainable energy.The objectives of Task 12 are to:(1)Quantify PV electricitys environmental profile to enhance supply chain sustainability and enable comparisons with other energy technologies.(2)Enhance PV technology and materials circularity through novel analysis,legislative tracking,and technical standards development.(3)Investigate synergies between PV system deployment and its environmental and ecosystem impacts.(4)Identify and tackle both real and perceived social and socio-economic challenges to PV market growth.(5)Share analytical findings with technical experts,policymakers,and the public.Task 12s first objective focuses on employing Life Cycle Assessment(LCA)for detailing energy,material,and emission flows across PV life cycles,including human health assessments.The second objective involves advancing the circular economy for PV modules and system components through research and metric development.The third objective is met by evaluating the impact of PV projects on ecosystems,including both standard and integrated systems like agrivoltaics.The fourth objective promotes sustainable practices within the solar value chain and assesses environmental,social,and socio-economic impacts of PV technology.Lastly,the fifth objective engages a wide audience through publications,presentations,and media collaboration,disseminating information and fostering industry-wide sustainable actions.Task 12 is operated jointly by the National Renewable Energy Laboratory(NREL)and TotalEnergies.Support from the U.S.Department of Energy and TotalEnergies is gratefully acknowledged.Further information on the activities and results of the task can be found here:https:/iea-pvps.org/research-tasks/pv-sustainability/.Task 12 PV Sustainability Review of PV Sustainability Standards DISCLAIMER The IEA PVPS TCP is organised under the auspices of the International Energy Agency(IEA)but is functionally and legally autonomous.Views,findings and publications of the IEA PVPS TCP do not necessarily represent the views or policies of the IEA Secretariat or its individual member countries COPYRIGHT STATEMENT This content may be freely used,copied and redistributed,provided appropriate credit is given(please refer to the Suggested Citation).The exception is that some licensed images may not be copied,as specified in the individual image captions.SUGGESTED CITATION Espinosa,N.,Sinha,P.,Drozdiak,K.,Wade,A.(2025).Heath,G.,ONeil,C.(Eds.),Review of PV Sustainability Standards(Report No.T12-30:2025).IEA PVPS Task 12.https:/iea-pvps.org/key-topics/t12-sustainability-standards-review-2025/COVER PICTURE Image credits:Roy Buri,Pixabay.INTERNATIONAL ENERGY AGENCY PHOTOVOLTAIC POWER SYSTEMS PROGRAMME Review of PV Sustainability Standards IEA PVPS Task 12 PV Sustainability Activities Report IEA-PVPS T12-30:2025 August-2025 ISBN 978-3-907281-75-8 DOI 10.69766/BINS9725 Task 12 PV Sustainability Review of PV Sustainability Standards AUTHORS Main Authors Nieves Espinosa,University of Murcia,Spain Parikhit Sinha*,Electric Hydrogen,USA Karen Drozdiak,First Solar Inc.,USA Andreas Wade*,Carrier Corporation,Germany Editors Garvin Heath,National Renewable Energy Laboratory,USA Connor ONeil*,National Renewable Energy Laboratory,USA Task 12 Managers Garvin Heath,National Renewable Energy Laboratory,USA Etienne Drahi,TotalEnergies,France *Non-Task 12 collaborating co-authors/editorsTask 12 PV Sustainability Review of PV Sustainability Standards 6 TABLE OF CONTENTS Acknowledgements.7 List of abbreviations.8 Executive summary.11 1 INTRODUCTION.13 1.1 Motivation for reviewing PV sustainability standards.14 1.2 Understanding the terms and concepts.15 1.3 Sustainability:dimensions and metrics.17 1.4 A guide for how to read the report.23 2 REVIEW OF PV SUSTAINABILITY STANDARDS.25 2.1 Sectoral Reporting Standards.25 2.2 Product Standards.53 2.3 Regulatory frameworks.64 3 EFFECTS AND IMPACTS OF THE SUSTAINABILITY STANDARDS.82 3.1 Effectiveness of Sustainability Standards&Frameworks.82 3.2 Portraits.84 3.3 Case studies.87 3.4 Mapping the connections of the standards with the SDGs.97 4 Conclusions.100 References.103 Task 12 PV Sustainability Review of PV Sustainability Standards 7 ACKNOWLEDGEMENTS This paper received valuable contributions from several IEA-PVPS Task 12 members and other international experts.Many thanks to Sarah M.Jordaan,Claire Agraffeil,Cara Libby and Mt Heisz for their inputs and review,and to tienne Drahi,Garvin Heath and Jose Bilbao for review and support.Task 12 PV Sustainability Review of PV Sustainability Standards 8 LIST OF ABBREVIATIONS ADEME French Agency for Ecological Transition(Agence de la transition cologique)AFNOR French Standardization Association(Association franaise de Normalisation)BAT Best Available Techniques BHRRC Business and Human Rights Resource Centre BOS Balance of system BSI British Standards Institute BTM Beyond the Megawatt C2C Cradle to Cradle CAB Conformance Assurance Body CDP Carbon Disclosure Project CSDDD Corporate Sustainability Due Diligence Directive CSR Corporate Social Responsibility CSRD Corporate Sustainability Reporting Directive EC European Commission EEA European Environmental Agency EEE Electrical and electronic equipment EPBT Energy Pay-back time EPEAT Electronic Product Environmental Assessment Tool EPIA European Photovoltaic Industry Association EPD Environmental product declarations EPR Extended Producer Responsibility ESG Environmental&Social Governance EVA Ethyl vinyl acetate FiT(s)Feed in Tariff(s)GEC Global Electronics Council GHG Greenhouse Gas GPP Green Public Procurement GRI Global Reporting Initiative IASB International Accounting Standards Board IEA International Energy Agency IIRC International Integrated Reporting Council Task 12 PV Sustainability Review of PV Sustainability Standards 9 IIM Influence Interest Matrix IEC International Electrotechnical Commission IECRE International Electrotechnical Commission Renewable Energy IFRS International Financial Reporting Standards ILO-MNE International Labour Organization-Multinational Enterprises IPCC Intergovernmental Panel on Climate Change IRENA International Renewable Energy Agency ISO International Standardisation Organisation ISSB International Sustainability Standards Board ITCs Investment Tax Credits LCA Life cycle assessment NSF National Scientific Foundation OECD Organisation for Economic Co-operation and Development PAS 2050 Publicly Available Specification PCF Product carbon footprint PCR Product Category Rules PEF Product Environmental Footprint PEFCR Product Environmental Footprint Category Rules PET Polyethylene terephthalate POM Placed on the market(often referred as Put on market as well)PV Photovoltaics QA Quality Assurance RBA Responsible Business Alliance RPSs Renewable Portfolio Standards R2 Responsible Recycling Standard SASB Solar Energy Sustainability Accounting Standard SDGs Sustainable Development Goals SEC Securities and Exchange Commission of United States SEIA US Solar Energy Industries Association SERI Sustainable Electronics Recycling International SFDR Sustainable Finance Disclosure Regulation SME Small and Medium Enterprise SSI Solar Stewardship Initiative SVTC Silicon Valley Toxics Coalitions Task 12 PV Sustainability Review of PV Sustainability Standards 10 TCFD Task Force on Climate-related Financial Disclosures UFLPA Uyghur Forced Labour Prevention Act UL Underwriters Laboratories UNEP FI United Nations Environmental Programme Finance Initiative VALERI Valuation of Energy Related Investments WBCSD World Business Council for Sustainable Development WEEE Waste electrical and electronic equipment Wp Watt peak WRI World Resources Institute XUAR Xinjiang Uyghur Autonomous Region Task 12 PV Sustainability Review of PV Sustainability Standards 11 EXECUTIVE SUMMARY As of 2025,less than 3,000 days remain for countries to achieve the Sustainable Development Goals(SDGs),a global initiative aimed at eradicating poverty and hunger while ensuring equal opportunities for all.Sustainability standards and frameworks are useful in reaching these targets,as they help companies apply the SDGs to benefit the environment,economy,and communities,as well as to identify business opportunities.This report offers a comprehensive review of the status of sustainability standards and organized schemes in the photovoltaics(PV)sector,covering the entire value chain.The PV value chain,like any industrial sector,operates within a complex web of societal,regulatory,technological and economic contexts.Meaningful evaluation of performance indicators across the value chain requires codification and harmonization of methodologies and metrics.This harmonization provides a framework for granting,maintaining,or withdrawing operating licenses for value chain participants.Implementation of these frameworks can occur through commercial avenues(e.g.,procurement requirements),regulatory measures(e.g.,product policy instruments),and social mechanisms(e.g.,stakeholder engagement in community-based initiatives).We categorize the standards and frameworks into three main sections,noting that some standards have attributes leading to their inclusion in multiple sections:1.Sectoral Reporting:This section addresses industrial reporting obligations,further divided into corporate reporting,environmental performance declarations,and other industry standards and benchmarks.2.Product-Related Standards:This section covers typical standards associated with the PV industry,including harmonized documents that set requirements and rules for production,processes,and services.Examples include the NSF 457 PV ecolabel,developed by NSF International;and the horizontal0F1 standards series EN 4555x,developed by the CEN-CENELEC,supporting the introduction of ecodesign requirements on material efficiency aspects across energy-related products by providing horizontal methods.3.Regulatory Frameworks:This section classifies standards related to regulatory frameworks,further divided into mandatory(e.g.,EU Ecodesign),voluntary(e.g.,Ecolabel),and waste-related frameworks(e.g.,WEEE Directive).In section 3 of the report,we evaluate the effects and impacts of these standards using methodologies such as the Organisation for Economic Co-operation and Development(OECD)six criteria,which provide a comprehensive framework for assessment:1.Relevance:The extent to which the standards meet the needs and priorities of stakeholders.2.Effectiveness:The degree to which the standards achieve their intended outcomes.1 Horizontal standards apply to several industries,while vertical standards apply to just a specific industry.Task 12 PV Sustainability Review of PV Sustainability Standards 12 3.Efficiency:The measure of how efficiently resources are used to achieve the standards objectives.4.Impact:The broader,long-term effects of the standards on the sector and society.5.Sustainability:The likelihood that the benefits of the standards will continue over time.6.Coherence:The alignment and synergies between different standards and policies.This evaluation provides insights into how these standards influence the PV sectors sustainability performance and highlights areas where improvements can better align with the SDGs.Key Conclusions From our analysis,several top-level insights emerge:Gaps and Overlaps:There are noticeable gaps in the existing standards,particularly in addressing the end-of-life management of PV products.Conversely,some areas show significant overlap,such as reporting requirements,which can be both beneficial for robustness and burdensome due to redundancy.Streamlining overlapping standards could enhance efficiency without sacrificing comprehensiveness.Maturity of Standards:The maturity of these standards varies widely.For example,regulatory frameworks like the EU Ecodesign are well-established and mature,whereas newer ecolabels and product-specific standards are still in nascent stages of development.This maturity spectrum indicates the PV industrys evolving approach towards comprehensive sustainability.Novelty and Comparison with Other Sectors:This analysis appears to be one of the first comprehensive reviews of sustainability standards specifically for the PV sector.While similar analyses have been conducted in other industries,such as electronics and automotive,the scope and application differ significantly.For instance,the automotive industry has more mature life cycle assessment standards,while the PV sector could be catching up.Conclusions and Future Work Given the dynamic nature of the PV industry and the rapid advancement of sustainability goals,periodically updating this analysis would be useful for tracking progress and incorporating new standards and frameworks.Continuous monitoring could help ensure that the PV sector remains aligned with the SDGs and adapts to emerging sustainability challenges and opportunities.By mapping the connections between standards and the SDGs,this report aims to facilitate a deeper understanding of how the PV industry can contribute to a more sustainable future.We used the SDG Mapper tool,developed by the European Commission,to visualize the relationships between policies and the SDGs,helping stakeholders identify which goals and targets are addressed in their documents.This tool provides visualizations that enable users to make informed decisions and mainstream the SDGs into policy and decision-making processes.Overall,this report serves as a resource for industry stakeholders,policymakers,and researchers,providing a structured overview of sustainability standards in the PV sector and select those that help in their alignment with global sustainability goals.This foundational analysis sets furthermore,the stage for future research and development in harmonizing and advancing sustainability standards within the PV industry.Task 12 PV Sustainability Review of PV Sustainability Standards 13 1 INTRODUCTION The socio-economic value of photovoltaic(PV)electricity generation is inextricably linked to sustainability attributes.The global deployment of PV systems at all scales has been supported by regulatory frameworks such as Feed-in-Tariffs(FiTs),Investment Tax Credits(ITCs),Renewable Portfolio Standards(RPSs),Building Standards,and other financial and non-financial incentives.This global support is based on the sustainability profile of the technology,which is a key enabler for achieving a transition towards a decarbonized global economy by mid-century,in line with the agreements of the Paris Accord.Today,in some countries PV is already competitive against other sources of electricity.In fact,in many scenarios adding PV is already the most cost-effective way to add new capacity.Having been on an exponential growth trajectory for decades and conceivably continuing that way toward terawatt-scale deployment in the coming years,stakeholders increasingly pay attention to the sustainability performance of topics like material and energy supply chains,manufacturing capacities,and PV project development and life cycle management practices.This growth in attention is indicated by Environmental,Social&Governance(ESG)surveys being deployed to technology manufacturers as part of technical and financial due diligence during procurement and general transparency and benchmarking activities.Additionally,regulatory initiatives,such as the European Commission preparatory study for Eco-Design,Ecolabeling,Energy Labelling and Green Public Procurement(Dodd&Espinosa,Preparatory study for solar photovoltaic modules,inverters and systems Task 8 Policy recommendations,2020),are recommending policy instruments to further improve the environmental,energy and socio-economic efficiency of photovoltaic modules,inverters,and systems.In recent years,the industrial,financial,and scientific communities involved in the PV value chain have responded to these requirements by developing comprehensive frameworks to measure and report the sustainability performance of PV systems on a life cycle basis.The subsequent chapters of this report portray the standards and frameworks that have been developed to provide a comprehensive overview and identify potential gaps and improvement opportunities.As the industry enters the next growth phasepropelled by PVs low-cost electricity generationa granular focus on sustainability performance will help evolve the regulatory and non-regulatory framework conditions for further decarbonization of the economy.It will also help delineate what sustainability truly is:at present,terms such as“green”,“sustainable”,and“ESG”have many different meanings.These terms,each with different approaches,are an overarching attempt to address one of the great failures of modern economics:i.e.,to capture“externalities”,such as the impact of the emissions on the climate,and how these impacts translate into day-to-day costs of company operations.Risks to the environment,people,and infrastructures force companies to enact positive changes in order to satisfy consumer demands and improve public opinion.There is also pressure on industry and financial institutions to be more upfront:countries such as the UK are considering mandatory risk disclosures around climate-related risks to an organizations business strategy.In the United States,there are prospects to impose climate risk reporting.Messages from businesses are clearly stating the need to set global standards for carbon accounting and offsetting.Right now,there is a lack of clarity that promotes greenwashing and delays meaningful actions.This report is intended to clarify how standards relate to sustainability goals in the PV sector.Task 12 PV Sustainability Review of PV Sustainability Standards 14 1.1 Motivation for reviewing PV sustainability standards Following a first classification of sustainability initiatives in the PV value chain proposed by(Wade,Sinha,Drozdiak,Mulvaney,&Slomka,2018),an Influence-Interest-Matrix(IIM)can be used to further characterize the dimensions of sustainability standards.In Table 1,the matrix maps the main focus areas of sustainability standards against key drivers and dimensions of impact.It is organized into four primary categories:“Reporting&Disclosure”,“Product performance”,“Manufacturing”and“Procurement”.These categories represent the main focus areas of the standards already developed;however,most of the standards and guidelines also cover aspects of all categories.The Key Drivers are the factors motivating the adoption or enforcement of standards,such as regulatory requirements,market expectations,or societal pressures.The Dimensions of Impact are the areas where standards create measurable outcomes,such as environmental compliance,social equity,or economic resilience.Onto the insights of the matrix,for instance,in the category of Product Performance,the matrix might reveal that most standards prioritize environmental attributes(e.g.,energy efficiency,recyclability),whereas social criteria are less frequently addressed.In the Manufacturing category,standards often focus on workplace safety and emissions control,reflecting regulatory drivers.This structured approach facilitates informed decision-making by policymakers,industry participants,and other stakeholders,ensuring that sustainability initiatives effectively address both the immediate and long-term needs of the PV sector.The PV value chain does not exist in a vacuum,as depicted in Figure 1.The subsequent chapters of this report will provide:(1)definitions of the terms and concepts used;(2)an overview on the structure of product and sector-specific sustainability standards and frameworks,which help to address the information and disclosure requirements identified in Figure 1;and(3)the effectiveness and impacts of those standards and frameworks.Figure 1 below(adapted after(IEA PVPS Task 1-32,2017;IEA PVPS Task 1-32,2017)shows meaningful evaluation of performance indicators along the value chain-reflecting different societal,regulatory and economic backgrounds.Based on those,a definition of Table 1.Influence-Interest-Matrix for sustainability standards along the PV value chain.The(X)typically indicates optional fulfilment,while X represents a specific condition that is always fulfilled.Task 12 PV Sustainability Review of PV Sustainability Standards 15 framework conditions for granting,maintaining or withdrawing operating licenses for value chain participants can take place.Implementation of these frameworks can then occur commercially through procurement requirements,regulatorily through product policy instruments restricting or enhancing market access,and socially through permitting.Despite the exponential growth of PV over the last decades globally,as well as a fast-changing landscape of actors involved,codification and harmonization only recently took shape with sector-specific requirements,which now help to define comparable sustainability performance standards.However,as the sustainable investment market evolves,the question is whether contributing to the energy transition is enough.Important topics remain unaddressed like forced labor in the supply chain,solar panel recycling,and managing commodity demand.Now the question is whether it is time for the solar sector to transform from product-led sustainability to one of sustainable operations?The subsequent chapters of this report will provide:(1)definitions of the terms and concepts used;(2)an overview on the structure of product and sector-specific sustainability standards and frameworks,which help to address the information and disclosure requirements identified in Figure 1;and(3)the effectiveness and impacts of those standards and frameworks.Figure 1.License-to-Operate information and disclosure requirements and interactions across the PV value chain.1.2 Understanding the terms and concepts This section gives definitions to help readers understand subsequent sections.Terms such as quality assurance,standards,accreditation bodies,reporting&disclosure and so on,will be hereafter used extensively.Task 12 PV Sustainability Review of PV Sustainability Standards 16 1.2.1 Quality Assurance Quality Assurance(QA)is part of the quality management system that ensures that stakeholders,including investors and developers,will meet quality requirements.Compliance with international standards and certifications at the market level helps to ensure quality and safety in the solar PV sector(International renewable energy agency IRENA,2015).Current QA standards in the solar PV industry primarily focus on production quality and module performance but do not address sustainability practices during the modules life cycle.1.2.2 Standards Standards are sets of requirements and rules for production,processes,and services.They aim to harmonize the market by defining methods and equivalent specifications.Recognized bodies establish and approve standards to achieve specific objectives.Examples in the solar PV industry include:IEC 61215-1-1,IEC 61215-2,IEC 61730-1,which are quality assurance and safety qualification standards by the International Electrotechnical Commission for solar PV modules followed by Europe,Australia,China,and India.UL 61730,a quality assurance standard by Underwriters Laboratories(UL)for solar PV modules followed in America.ISO 9001,14001,45001,which check the conformity of sustainable manufacturing processes of solar PV modules.1.2.3 Certification Certification is a procedure used to assess whether a product,service,organizational management system,or individuals qualification meets the requirements of a standard.It involves written assurances provided by independent bodies and is voluntary in nature.Examples in the solar PV industry include:Certification of management systems according to ISO 9001,14001,45001,which check the conformity of sustainable manufacturing processes of solar PV modules and guide designers and manufacturers through a continual improvement process.Certification of standards as IEC 61215 or IEC 61730 Certification bodies like TV Rheinland,TV SD,VDE,UL,DNVGL,RISE,CERTISOLIS,etc.1.2.4 Testing processes The aim of testing is to verify the conformity of the test object to established quality,performance,safety,and reliability standards.Examples in solar PV industry Included in the IEC 61215 standard are 19 module quality tests,e.g.,temperature cycling,outdoor exposure test,UV preconditioning,humidity freeze test,damp heat test,hail test,interalia.1.2.5 Accreditation The accreditation involves the independent evaluation of conformity by assessment bodies against recognized standards to ensure impartiality and competence to carry out specific services,such as tests,calibrations,inspections,and carbon footprint certifications.Task 12 PV Sustainability Review of PV Sustainability Standards 17 Examples of accredited certification/inspection bodies1F2 in the solar PV industry include testing laboratories such as TV Rheinland,TV SD,UL,DNVGL,CERTISOLIS,etc.1.2.6 Inspection bodies Inspection bodies,whether private organizations or government authorities,examine the design of products,services,procedures,and installations and evaluate their conformity with requirements found in laws,technical regulations,standards,and specifications.Examples in the solar PV industry include inspection bodies like TV Rheinland,TV SD,UL,etc.Some organizations like TV and UL not only have testing facilities but also offer certification and inspection services.1.2.7 Disclosure and reporting Reporting and disclosure refer to the act of making facts and information available to the public.In the financial world,these terms pertain to the timely release of all information about a company that may influence an investors decision.Environmental disclosure has a long history,and various standard setters such as Carbon Disclosure Project(CDP),Internacional Integrated Reporting council(IRC),Solar Energy Sustainability Accounting Standard(SASB),and Task Force on Climate-related Financial Disclosures(TCFD),have been developed to promote transparent reporting on environmental aspects.Creating manageable disclosure and reporting has become more urgent due to concerns about greenwashing.Deceptive ESG representation has drawn scrutiny from government and regulatory agencies,increasing general skepticism about ESG practices.For instance,the U.S.Securities and Exchange Commission has been focusing on funds claiming to be environmentally friendly,and recommended climate-related disclosures,including information about climate-related risks and greenhouse gas emissions.Measuring ESG-related data remains a challenge,particularly in assessing social factors,which will be further discussed in section 2.1.1.3 Sustainability:dimensions and metrics Sustainability is understood as an integrated approach that takes environmental concerns along with economic development into consideration.The United Nations(UN)defines sustainability as:“meeting the needs of the present without compromising the ability of future generations to meet their own needs(World Commission on Environment and Development,1987).Reflective of the nested three dimensions of sustainability(Figure 2),this framework has become a common reference point in the scientific,societal,and political discussions on sustainability.It emphasizes the fundamental hierarchy between the three dimensions of sustainability:the environment,society,and economy.This hierarchy acknowledges that a functioning economy depends on a healthy society,which,in turn,relies on a healthy and functioning environment.Unlike earlier representations,this conception avoids presenting the 2 In the EU,there is one National Accreditation Body(NAB)per Member State according to Regulation(EC)No 765/2008.As an authoritative body appointed by its national authorities,the National Accreditation Body performs accreditation by assessing Conformity Assessment Bodies against international standards.See https:/european-accreditation.org/accreditation/for-regulators/for further info on accreditations.Task 12 PV Sustainability Review of PV Sustainability Standards 18 three dimensions as equally weighted or implying a balance that could prioritize one dimension at the expense of another.Sustainability is increasingly integrated into decision-and policy-making processes.This is reflected in the development of the Sustainable Development Goals(SDGs),accepted by all UN Member States in 2015.The SDGs framework is a call to promote prosperity while respecting the planet.Figure 2.Nested representation of sustainability,adapted after(Purvis,Mao,&Robinson,2019)Along those dimensions and in line with the overall objectives of standardization,the standards aim to define a precise,concise,and widely applicable set of metrics and evaluation methodologies that characterize the performance of photovoltaic products and manufacturers.As such,those standards enable comparability and independent evaluationthe so-called“level playing field”which form the basis for voluntary and regulatory frameworks aiming at validation of performance claims to protect consumer,share-and stakeholder rights,enhance the socio-economic performance of a product category,or restrict market access for non-performing products or value chain actors.Those mechanisms will be detailed in Chapter 2,where we provide an overview on the existing standards in conjunction with the implementing frameworks.In line with the dimensions of sustainability,a classification of metrics and methodologies can be developed.A differentiation between LCA-based environmental performance metrics,single-issue metrics and social and economic governance metrics and indicators are common in the available sustainability standards for photovoltaics.1.3.1 LCA-based environmental performance metrics One of the best-known tools to account for environmental impacts is the life cycle assessment(LCA)methodology,complying with standards ISO 14040 and 14044.By using data from life cycle inventories,quantitative results for impact categories can be obtained at midpoint and then aggregated in endpoint categories of damage(e.g.,global warming potential,human health damage,ecosystems damage,and resources depletion)following several impact methodologies(Table 2).When solar PV is compared to other renewable,fossil fuel,and nuclear electricity production,solar electricity has much lower impacts than fossil fuel electricity in most categories.LCA can be used to evaluate the environmental impacts of PV products over their full lifetime,and it is extensively used to compare the environmental impact of different PV technologies.However,this framework leaves the individual practitioner with a range of choices that can affect the resultsand thus the conclusionsof an LCA study.Therefore,the IEA PVPS Task 12 PV Sustainability Review of PV Sustainability Standards 19 programme published LCA guidelines for PV,offering sectoral guidance on how to do this(Frischknecht,y otros,2020).PV-specific product category rules for environmental product declarations(EPD)have also recently been published by international EPD platforms(Norge;Italy;Commission,PEFCR,EU).In addition to traditional LCA,the Life Cycle Sustainability Assessment(LCSA)framework is increasingly recognized as a comprehensive tool for evaluating the sustainability performance of PV products.LCSA extends the scope of conventional LCA by integrating social and economic dimensions,alongside environmental aspects,into the assessment.This holistic approach provides a more complete understanding of how PV technologies contribute to broader sustainability goals,such as fostering social equity or improving economic resilience.As discussed in the next section,a number of simplified methods for analysing the life cycle of PV technology have been also used by the scientific community to address data and resource limitations in specific cases.1.3.2 Single-issue metrics When it comes to sustainability standards for PV systems,several single-issue metrics can be used to assess different aspects of sustainability.These metrics help evaluate the environmental impact and performance of PV products and processes.Here are some of the key single-issue metrics:1.Materials&chemicals in products and processes:Toxicological properties:Assessing the presence of hazardous materials in PV modules and their potential impact on human health and the environment.Critical raw materials:Special attention is given to critical materials such as silver,indium,and rare earth elements,which play a pivotal role in PV technology but present challenges in terms of environmental impact and resource scarcity.Management systems&policies:Evaluating the effectiveness of management systems and policies to ensure safe and responsible materials and chemicals handling throughout the PV modules life cycle.2.Emissions:Carbon footprint(carbon dioxide and other greenhouse gases):Quantifying the greenhouse gas emissions associated with the production,use,and disposal of PV modules.The GHG Protocol provides guidelines for calculating and reporting these emissions.IEA Task 12 Methodology Guidelines on Life Cycle Assessment of Photovoltaic2F3 also provide specific recommendations for PV carbon footprint assessment;for example to use the most recent global warming potential(GWP)factors published by the IPCC.3.Embodied energy and energy yield:Energy payback time(EPBT):Measuring the time required for a PV system to generate the same amount of energy that was consumed during its manufacturing and installation.According to Fraunhofer ISE,it can range from 0.44-1.5 years for a PERC module rooftop system with 20ficiency3F4.Energy return on investment(EROI):Assessing the ratio of energy generated by a PV system over its lifetime to the energy invested in its production and installation.This metric links the energy yield of PV systems to their embodied impacts.3 https:/iea-pvps.org/wp-content/uploads/2020/07/IEA_Task12_LCA_Guidelines.pdf 4 Fraunhofer ISE:Photovoltaics Report,updated:30 July 2024 Task 12 PV Sustainability Review of PV Sustainability Standards 20 Calculation methodologies and boundary definitions are described in the Task 12 LCA Guidelines3.4.Waste:Product&production:Evaluating the amount of waste generated during the manufacturing and installation of PV systems,as well as the recyclability and disposal methods of end-of-life PV modules and inverters.Regulations like the French AGEC law4F5 require higher recycling rates,emphasizing the need for effective end-of-life strategies to recover critical materials such as silver,silicon,and copper.Management systems&policies:Assessing the effectiveness of management systems and policies to minimize waste generation,promote recycling,and ensure proper disposal of PV module waste.5.(Waste)Water:Water use&wastewater:Examining the amount of water consumed during the manufacturing and installation of PV modules,as well as the treatment and management of wastewater generated.Management systems&policies:Evaluating the implementation of management systems and policies to minimize water consumption,promote water conservation,and ensure proper wastewater management.These single-issue metrics are essential for assessing the sustainability performance of PV systems.They provide insights into the environmental impact,resource efficiency,and waste management practices associated with the production,use,and end-of-life treatment of PV modules and systems.By integrating these metrics into sustainability standards,the PV industry can strive for more sustainable practices throughout the life cycle of PV systems.Figure 3.World Map EPBT of Silicon PV Rooftop Systems.From:Fraunhofer ISE:Photovoltaics Report,updated:30 July 20244 5 https:/www.ecologie.gouv.fr/loi-anti-gaspillage-economie-circulaire Task 12 PV Sustainability Review of PV Sustainability Standards 21 Table 2.Life cycle assessment results for production(material input)of 1 kWh by a multi-Si PV module using the EcoReport tool and Ecoinvent database for background data,e.g.electricity.The PV modules are considered to be ground-mounted at optimal fixed angle;Module-rated efficiency 18%;Degradation rate 0.5%annually;Lifetime of PV 30 years;Installation location Southern Europe with annual irradiation 1700 kWh/m;Performance ratio 80%.Reproduced from(Polverini,Dodd,&Espinosa,2021).Weight GER Water(proc. cool)Haz.Waste Non-haz.Waste GWP AD VOC POP HMa PAH PM HMw EUP Photovoltaic cell 4r%0ypwv5%Interconnection-Tin 0%0%0%0%0%0%0%1%0%0%0%1%0%0%Interconnection-Lead 0%0%0%0%0%0%0%0%0%0%0%0%0%0%Interconnection-Copper 1%0%0%0%0%0%2%0%1%1%0%0%6%0%Encapsulation-ethylvinylacetate 7%3%0%0%1%1%0%9%0%1%0%0%0%3cksheet-PVF 1%1%0%0%1%1%1%2%1%1%0%0%0%2cksheet-PET 3%1%0%0%1%1%2%0%0%0%1%0%0%Pottant&sealing 1%0%0%0%0%0%0%1%0%0%0%0%1%0%Aluminium frame 16%0%0%4%9%1%2F%0%Solar glass 66%6%0%0%4%6%6%2%4%0%3%2%6%Junction box-diode 0%0%2%0%0%0%0%0%0%0%0%0%0%0%Junction box-HDPE 0%0%1%0%0%0%0%0%0%0%0%0%0%0%Junction box-glass fibre 2%1%1%0%1%1%0%0%0%0%1%9%1%Note.In columns are the environmental categories:GER(Gross Energy Requirement),Haz./non Haz.waste(Hazardous/Non-hazardous waste),GWP(Global Warming Potential),AD(Abiotic Depletion),VOCs(Volatile Organic Compounds),POP(Persistent Organic Pollutants),HMa(Heavy Metals to air),PAH(Polycyclic Aromatic Hydrocarbon),PM(Particulate Matter),HMw(Heavy Metals to water),EUP(Eutrophication Potential).contribution to impact category X 50%contribution to impact category 25%X 50%contribution to impact category 10%X 10%Task 12 PV Sustainability Review of PV Sustainability Standards 22 1.3.3 Social&Economic Governance metrics In the realm of sustainability standards for PV systems,the social and economic dimensions are also relevant.Social and Economic Governance aspects play a significant role in ensuring sustainable practices throughout the PV supply chain.One critical area of focus is the supply chain,which involves assessing the sustainability and ethical practices of all stakeholders involved in the production and distribution of PV systems.This includes evaluating suppliers environmental and social performance,ensuring responsible sourcing of raw materials,and promoting fair trade practices.Labour policies and workers rights are key considerations.PV sustainability standards aim to ensure fair treatment and safe working conditions;including fair wage policies,promoting non-discrimination and diversity,and ensuring health and safety protocols are in place.Disclosure and reporting are fundamental in fostering transparency and accountability in the PV industry.Standardized reporting requirements help companies to disclose their social and economic performance,including sustainability progress,labour practices,and supply chain transparency.This allows stakeholders,including consumers and investors,to make informed decisions and hold companies accountable for their social and economic practices.Social Life Cycle Assessment(Social LCA)is an emerging method to measure the social impacts of a products life cycle,from raw material extraction to disposal.Still under development,Social LCA faces challenges in capturing regional and socio-political contexts.Tools often lack the granularity to address environmental justice issues or regional disparities,limiting the accuracy of local impact assessments.By incorporating these social and economic governance metrics into PV sustainability standards,the industry can ensure that the human and economic aspects of PV systems are considered,fostering a more comprehensive and responsible approach to sustainable energy.1.3.4 Supply Chain traceability and bifurcation:sector-wide challenges A recurring concern in the governance of responsible sourcing frameworks across industries is the risk of supply chain bifurcation.This occurs when companies maintain parallel supply chainsone certified to meet high sustainability standards for specific markets,and another with lower levels of scrutiny that may continue sourcing from high-risk regions.This phenomenon has been observed in several sectors,including textiles and electronics5F6,and is increasingly debated in the context of solar photovoltaic(PV)supply chains.Supply chain bifurcation poses challenges for traceability and transparency,particularly when sustainability standards do not explicitly require disengagement from suppliers in regions where credible due diligence is not feasible.In such cases,companies may technically comply with a standard by certifying only a portion of their supply chain,while the rest remains unverified or opaque6F7.As an alternative to full and immediate disengagement,some initiatives focus on a continuous expansion of assessments across participants sites and operations.In the solar sector,this issue is particularly complex due to the historical concentration of upstream production.As of 2023,nearly 35%of the worlds supply of solar grade polysilicon 6 Bartley,T.(2018).Rules without Rights:Land,Labor,and Private Authority in the Global Economy.Oxford University Press.7 https:/www.antislavery.org/wp-content/uploads/2024/01/ASI-HCIJ-IAHR-Investor-Guidance.pdf Task 12 PV Sustainability Review of PV Sustainability Standards 23 supply was sourced from the Xinjiang Uyghur Autonomous Region(XUAR)7F8.This share has been decreasing in recent years-in 2021 it was around 47%-reflecting a trend towards diversification8F9.Manufacturers committed to responsible practices have been gradually shifting and reconfiguring their supply chains away from XUAR9F10.Some analysts suggest that there is now sufficient polysilicon production capacity outside of XUAR to enable the establishment of cleaner supply chains for certain markets10F11.However,some players concerned about indirect exposure to XUAR recommend avoiding Chinese solar components altogether in order to meet the rapidly growing global demand for traceable and responsibly sourced solar components11F12.Another challenge in sustainability governance is the balance between the ambition of criteria and the level of industry adoption.On one hand,strong criteriasuch as third-party audits,traceability to raw material origin,or independent governanceensure rigor and credibility.On the other hand,if standards set a bar too high,few companies may be able to comply,limiting market transformation and potentially discouraging participation.This strengthuptake trade-off is common in voluntary certification schemes12F13.Inclusive frameworks with sector-wide coverage may adopt a phased approach,requiring gradual improvements over time,while others enforce strict criteria from the outset.Both approaches have merits:the former encourages broad industry engagement and continuous improvement,while the latter provides strong signals for accountability and market differentiation.This report does not attempt to resolve this tension,but acknowledges that the initiatives coveredboth voluntary and regulatoryapproach these trade-offs in different ways.As the solar sector matures and supply chain pressures grow,future research will be needed to identify best practices that combine broad adoption with credible impact.1.4 A guide for how to read the report This comprehensive review is not intended to be read in one long sitting.Instead,it reports on the status quo of sustainability standards and organized schemes in the PV sector,covering the entire value chain.After the review,the authors divided the standards and frameworks into three main sections:1.Sectoral Reporting:This section addresses industrial reporting obligations and is divided into corporate reporting,environmental performance declarations,and other industry standards and benchmarks.2.Product-Related Standards:This section covers the typical standards associated with the PV industry,including harmonized documents that set requirements and rules for production,processes,and services.Examples include the NSF 457 Solar ecolabel and the horizontal standards series 4555x.8 Crawford,A.and Murphy,L.T.(2023),“Over-Exposed:Uyghur Region Exposure Assessment for Solar Industry Sourcing,”Sheffield,UK:Sheffield Hallam University Helena Kennedy Centre for International Justice,https:/shura.shu.ac.uk/34917/9 According to BloombergNEFs Q4 2024 Global PV Market Outlook,Xinjiangs share further declined to approximately 20%.10 https:/ 11 https:/pv-magazine- https:/ Auld,G.(2014).Constructing Private Governance:The Rise and Evolution of Forest,Coffee,and Fisheries Certification.Yale University Press.Task 12 PV Sustainability Review of PV Sustainability Standards 24 3.Regulatory Frameworks:This section classifies standards related to regulatory frameworks,further subdivided into mandatory(e.g.,EU Ecodesign),voluntary(e.g.,Ecolabel),and waste-related frameworks(e.g.,WEEE Directive).In the final section,the report evaluates the effects and impacts of these standards by using inter alia OECD six criteria methodology.Task 12 PV Sustainability Review of PV Sustainability Standards 25 2 REVIEW OF PV SUSTAINABILITY STANDARDS We analysed the structure of identified sustainability standards,and they are classified into three main categories:Sectoral reporting policies,Product policies,Regulatory frameworks.Table 2 contains a description of schemes considered under each category.Table 2.Structure and description of categories of PV sustainability standards used in this report.Classification categories Description Sectoral reporting and disclosure Set of activities that companies do to make facts and information available to the public.E.g.climate-related risks,disclosure of greenhouse gas emissions.Product-related Requirements and rules to be accomplished at production processes and services to PV industry,to harmonise the market by defining methods and equivalent specifications.Regulatory frameworks Governmental actions.Sustainable product policies that address different aspects associated with the life cycle of PV products.These policies typically make use of product sustainability standards for proof of compliance 2.1 Sectoral Reporting Standards Sectoral reporting standards Corporate responsibility Environmental,Social,and Governance Environmental performance declarations Other industry benchmarks&best practices 2.1.1 ESG reporting initiatives This section presents the ESG(Environmental,Social,and Governance)activities that companies undertake to make facts and information accessible to the public.These activities often include the disclosure of climate-related risks and greenhouse gas emissions.Environmental&Social Governance reporting initiatives Solar Energy Sustainability Accounting Standard(SASB)Global Reporting Initiative(GRI)Carbon Disclosure Project(CDP)Valuation of Energy Related Investments(VALERI)standard Climate risks-financial disclosure Renewable electricity criteria RE100 Criteria Social responsibility Task 12 PV Sustainability Review of PV Sustainability Standards 26 The ability to trace the provenance of components through the supply chain-from input materials to the finished product-upholds corporate social responsibility principles,quality assurance,and environmental performance.Robust product traceability provides openness and transparency.The EUs influence on climate action means its approach to sustainable investment is highly relevant.Its strategy sits within the Green Deal framework and incorporates ESG considerations to promote long-term investments in sustainable projects.The ESG market has grown substantially,driven by belief that ESG-focused investments can address environmental and social issues without sacrificing returns.A 2021 analysis showed that strong ESG propositions create value,leading to increased demand for sustainable products and services.According to financial services firm Morningstar,the number of ESG funds rose to 534 by the end of 2021,up from 392 the previous year.ESG investments could soon make one third of projected assets under management.Bloomberg Intelligence projects global ESG assets to reach$50 trillion by 2025,up from$35 trillion in 2020.However,backlash exists due to varied ESG ratings methods,and the lack of standardised metrics.Recent fines and raids on asset managers for exaggerating ESG integrity highlight concerns,with ESG seeing its first outflow in five years in 2022.ESG has become shorthand for companies with positive environmental and social impacts and strong governance.Governance ensures transparent decision-making,accountability,ethical behaviour,and risk management.Understanding ESG requires recognizing the importance of governance in driving sustainable business practices.ESG is an investment lens,not a cure-all for sustainability issues,but it has become synonymous with sustainable,responsible,or green investment.MSCI Inc.13F14,views ESG ratings similarly to credit ratings,focusing on the financial materiality of operations.The central question is whether investors should prioritize financial materiality or also consider the environmental and social impacts of operations.Different frameworks address this:the International Financial Reporting Standards Foundation focuses on financial significance,while the European Financial Reporting Advisory Group(EFRAG)introduces double materiality into the EU Sustainability Disclosure Standards14F15,considering both financial and impact materiality.This concept will dictate how companies report to the CSRD(Corporate Sustainability Reporting Directive).In the PV markets,there is a premium for better ESG performance.Players are willing to pay a premium for PV modules with good warranties,a lower carbon footprint,and delivery security,particularly in European markets.Achieving complete ESG transparency can result in a cost difference of 1.3 to 1.5 EUR ct/Wp15F16,highlighting the impact of incorporating ESG factors throughout the value chain.This trend is expected to strengthen as the importance of ESG rises,especially among banking institutions.In summary,integrating financial risk and impact is essential in the green-ESG market to ensure a comprehensive assessment of financial risks associated with social,environmental,and climate impacts.The emergence of a premium for better ESG performance in the PV markets underscores the need for robust ESG practices.14 Previously named Morgan Stanley Capital Internacional 15 https:/ec.europa.eu/finance/docs/level-2-measures/csrd-delegated-act-2023-5303_en.pdf 16 https:/ 12 PV Sustainability Review of PV Sustainability Standards 27 2.1.1.1 Sustainability Accounting Standard(SASB)applied to Solar Energy(/Sectoral reporting standards/Corporate responsibility)The International Financial Reporting Standards(IFRS)Foundation has established the International Sustainability Standards Board(ISSB)to meet the increasing demand for transparent financial-related sustainability disclosures.The ISSB aims to create a global baseline for sustainability reporting by leveraging existing investor-focused initiatives like the Sustainability Accounting Standard Board(SASB)Standards.In 2022,the IFRS Foundation took over the SASB through its merger with the Value Reporting Foundation.The SASB Standards identify the most relevant environmental,social,and governance issues for financial performance across 77 industries based on rigorous research and broad participation.Recognized by global investors,the SASB Standards enable organizations to provide industry-specific sustainability disclosures that impact enterprise value.The ISSB plans to build on the industry-focused approach of SASB in its own standards development.The SASB Standards are integral to the Climate-related Disclosures Exposure Draft and the General Requirements for Sustainability-related Disclosures Exposure Draft.The ISSB encourages companies and investors to continue utilizing the SASB Standards until they are eventually replaced by the forthcoming IFRS Sustainability Disclosure Standards.2.1.1.2 Global Reporting Initiative(GRI)(/Sectoral reporting standards/Corporate responsibility)The Global Reporting Initiative(GRI)was established in 1997 in response to public concern over the environmental damage caused by the Exxon Valdez oil spill.Its initial purpose was to create an accountability mechanism to ensure companies adhere to responsible environmental conduct principles.Over time,the scope of GRI expanded to include social,economic,and governance issues,making it a comprehensive sustainability reporting framework.For the past 25 years,GRI has played a significant role in developing guidelines,standards,and aligning with the United Nations goals and Sustainable Development Goals(SDGs)(see Figure 4).It has become widely recognized as the most comprehensive framework for sustainability reporting.GRI is extensively used by multinational companies and has gained significant traction within the solar industry.The prominence of GRI in sustainability reporting is reflected in the fact that the corporate reporting criteria in NSF 457,a sustainability leadership standard for solar PV modules,reference both GRI and the SASB.This recognition highlights the importance of GRIs guidelines and standards in promoting transparency and accountability in corporate sustainability reporting practices.Task 12 PV Sustainability Review of PV Sustainability Standards 28 Figure 4.Timeline of GRIs history.From www.globalreporting.org.2.1.1.3 Carbon Disclosure Project-Sector Rules (/Sectoral reporting standards/Corporate responsibility)The Carbon Disclosure Project(CDP)is a global environmental disclosure platform helping companies and cities to measure and manage environmental impacts,promoting transparency and raising awareness regarding the sectors contribution to climate change mitigation.By implementing CDP guidelines,companies can better understand their environmental impacts and identify areas for improvement;such as reducing greenhouse gas emissions,optimizing energy use,and adopting sustainable practices throughout their operations.While CDP does not have specific sector rules dedicated to the PV sector,many organizations are voluntarily reporting their carbon emissions through initiatives such as the CDP.Carbon Emissions Reporting CDP encourages companies to disclose their greenhouse gas emissions,according to the Greenhouse Gas(GHG)Protocol16F17,which categorizes emissions into three scopes:Scope 1(Direct Emissions):These are emissions that occur from sources owned or controlled by the company,such as fuel combustion in company-owned vehicles or manufacturing equipment.Scope 2(Indirect Energy Emissions):These include emissions resulting from the generation of purchased electricity,heating,cooling,or steam that the company uses.Scope 3(Other Indirect Emissions):These encompass all other indirect emissions that occur in the companys value chain,both upstream(e.g.,supply chain activities,raw material production)and downstream(e.g.,transportation of products,end-of-life disposal of PV modules).17 https:/ghgprotocol.org/corporate-standard Task 12 PV Sustainability Review of PV Sustainability Standards 29 Energy Use Reporting CDP also encourages companies to disclose their energy use,including renewable energy consumption.PV companies,being in the renewable energy sector,can highlight their use of clean and sustainable energy sources,showcasing their commitment to reducing reliance on fossil fuels.Environmental Performance While not specific to the PV sector,CDP provides a platform for companies to disclose their environmental performance across various metrics.PV companies can report on their water usage,waste management practices,and other environmental indicators,demonstrating their commitment to sustainability and environmental stewardship.Investor and Stakeholder Engagement CDPs disclosure platform is widely recognized and used by investors,financial institutions,and stakeholders to assess companies environmental performance.PV companies that participate in CDP reporting can enhance their transparency and credibility among these audiences,potentially attracting investment and partnerships.Climate Change Mitigation By participating in CDP,PV companies contribute to the broader goal of climate change mitigation.PV technology plays a crucial role in decarbonizing the energy sector and reducing greenhouse gas emissions.Reporting through CDP can help showcase the industrys positive impact on addressing climate change.2.1.1.4 Valuation of Energy Related Investments(VALERI)standard(/Sectoral reporting standards/Corporate responsibility)The CEN-EN 17463 standard is an important breakthrough in the developing field of“green finance”,and it was the result of the efforts of many European experts invested in this work during the pandemic.17F18 It provides a description on how to gather,calculate,evaluate,and document information in order to create solid business cases based on Net Present Value calculations for ERIs.The standard is applicable for the valuation of any kind of energy related investment.It focusses mainly on the valuation and documentation of the economic impacts of ERIs.However,non-economic effects(e.g.,noise reduction)that can occur through undertaking an investment are also considered.Thus,qualitative effects(e.g.,impact on the environment)even if they are non-monetisableare considered.2.1.1.5 Climate risks-financial disclosure(/Sectoral reporting standards/Corporate responsibility)In todays business landscape,industries and financial institutions face growing pressure to increase transparency in ESG practices.Companies are increasingly aware of climate risks to society,infrastructure and environment,prompting proactive steps towards reducing climate impacts.Balancing public opinion and customer demands,they aim to align their short-and long-term strategies with the evolving macroeconomic context.Internationally,several regulatory bodies are considering mandatory risk disclosures related to climate change.In the United Kingdom,discussions are underway regarding mandatory 18 https:/ Task 12 PV Sustainability Review of PV Sustainability Standards 30 climate-related risk disclosures for organizations,impacting their business strategies.Similarly,in the United States,the Securities and Exchange Commission is exploring the imposition of climate risk reporting requirements,signalling a growing awareness of the importance of climate-related financial disclosures.Within the European Union(EU),significant strides are being made in the realm of sustainability reporting.As mentioned above in section 2.1.1,the EU has recently introduced an update to the Nonfinancial Reporting Directive through the Corporate Sustainability Reporting Directive(CSRD).18F19 Under the CSRD,all large companies with over 500 employees and an annual turnover of at least 40 million will be required to report on their sustainability performance.Moreover,the European Commission has taken a significant step toward bolstering transparency in financial reporting by adopting sustainability reporting standards.To ensure effective implementation,these sustainability reporting standards have been developed in accordance with the technical advice provided by the European Financial Reporting Advisory Group(EFRAG).Key details of the sustainability reporting standards are:Effective Date and Application:This regulation comes into force on the third day following its publication in the Official Journal of the European Union.It applies for financial years beginning on or after January 1,2024.Consultation and Consideration:The Commission sought input from the Member State Expert Group on Sustainable Finance,the Accounting Regulatory Committee,and relevant authorities like the European Securities and Markets Authority(ESMA),the European Banking Authority(EBA),and the European Insurance and Occupational Pensions Authority(EIOPA).Their opinions were considered in alignment with Regulation(EU)2019/2088.These sustainability reporting standards mark a milestone in promoting sustainable business practices and harmonizing financial reporting across EU member states.Furthermore,the Task Force on Climate-related Financial Disclosures(TCFD)has emerged as a framework for disclosing climate governance and risks.19F20 CDPs Climate Change questionnaire has been in full alignment with TCFD guidelines since 2018,and it is committed financial transparency related to climate disclosures.In 2022,the U.S.Securities and Exchange Commission proposed a significant climate disclosure rule,marking a step towards more sustainable reporting.While the CDP aligns with federal climate disclosure mandates,it remains committed to advancing voluntary,investor-grade environmental reporting.CDP is expanding its scope to address biodiversity,land use,and oceans,reflecting its dedication to broader sustainability issues.20F21 2.1.1.6 Renewable electricity criteria RE100 Criteria(/Sectoral reporting standards/Corporate responsibility)RE100 is a global corporate renewable energy initiative bringing together hundreds of large businesses committed to 100%renewable electricity.RE100 defines renewable electricity consumption as the ability to make unique claims on the use of renewable electricity generation 19 Corporate Sustainability Reporting Directive,https:/eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32022L2464 20 https:/www.fsb-tcfd.org/21 https:/ Task 12 PV Sustainability Review of PV Sustainability Standards 31 and its attributes.RE100 members must be able to demonstrate that they have an exclusive claim to use of unique renewable electricity generation to meet all its reported renewable electricity usage.Typically,this means ownership of the generation attributes(e.g.energy attribute certificates(EACs)associated with the generation.In markets without available renewable energy certificate systems,companies may be able to use other contractual instruments and arrangements between generators,suppliers,and users to ensure that no other entity may claim use or delivery of the same renewable electricity generation.The criteria21F22 elaborated by RE100 Technical Advisory Group,in consultation with the companies in the campaign,define what counts as sourcing renewable electricity for the purpose of participation in the RE100 campaign,introducing electricity accounting and reporting rules,providing regional or national context,and providing further briefings on emerging best practices.2.1.1.7 Circular economy standards ISO 59000 series On 22 May 2024,the International Organization for Standardization(ISO)published a new family of standards to guide the transition to the circular economy.The standards mark the first set of international definitions and rules for the circular economy.The new ISO series provides a structured approach for organisations to measure and assess their circularity performance.It aims to standardise the process by which organisations collect and calculate data,using mandatory and optional circularity indicators.The three new ISO Circular Economy standards are shown in Figure 5:ISO 59004:Terminology,Principles,and Guidance for Implementation ISO 59010:Guidelines for the Transition of Business Models and Value Networks ISO 59020:Measurement and Evaluation of Circularity ISO 59000 divides the circular economy into six primary principles:1.Systemic thinking,according to which the environmental,economic and social impact of operations must be considered.2.Value creation through resource-efficient solutions,3.Value sharing,4.Ensuring resource availability,5.Resource traceability along value chains,and 6.Protecting and restoring ecosystem sustainability and biodiversity Hence the ISO 59000 standard will:help organisations align with global sustainability goals enhance transparency and accountability in environmental reporting support strategic decision-making for sustainable resource management.The standards also provide support for measuring and assessing circularity performance across entire organizations,advising the measurement of renewability,reuse,and recycling of resource flows and the lifecycle as a whole.22 RE100 Technical criteria.Available at:https:/www.there100.org/sites/re100/files/2021-04/RE100 Technical Criteria _March 2021.pdf Task 12 PV Sustainability Review of PV Sustainability Standards 32 Figure 5.ISO Circular Economy standards.Source:ISO 59000 series.2.1.2 Responsible supply chain (/Sectoral reporting standards/Corporate responsibility)2.1.1.9 Responsible supply chain A.Legal acts:These are binding regulatory frameworks enforced by governments,which companies must comply with-Uyghur Forced Labor Prevention Act(UFLPA)-EU Forced Labor ban-Corporate Sustainability Due Diligence Directive(CSDDD)B.Voluntary initiatives Not legally binding but adopted voluntarily by companies and industry actors to demonstrate commitment to responsible sourcing and human rights-Solar supply chain traceability protocol-Responsible Business Alliance(RBA)-Responsible Supply Chains in Asia program-Solar Stewardship Initiative Uyghur Forced Labor Prevention Act(UFLPA)Social responsibility in the context of the solar supply chain is gaining significant attention due to growing concerns about forced labour and human rights abuses.The U.S.government and Task 12 PV Sustainability Review of PV Sustainability Standards 33 G7 countries have identified forced labour as a major issue within the solar supply chain.22F23 The 2023 Global Slavery Index lists solar panels as the fourth highest at-risk products in terms of value that are imported by the G20.23F24 The U.S.has taken legislative action with the adoption of the Uyghur Forced Labor Prevention Act(UFLPA),24F25 which instructs U.S.Customs and Border Protection to presume goods produced in the Xinjiang Uyghur Autonomous Region(XUAR)were made with forced labor and unfit for entry.This has a direct impact on the solar industry,as almost half of the worlds polysilicon,a key component of solar panels,is produced in the XUAR25F26,26F27.Anti-Slavery International,the worlds oldest human rights organization,has criticized solar industry associations for not doing enough to get solar companies to relocate their supply chains away from the XUAR27F28.Concerns have been raised by experts that the expansion of polysilicon production in Inner Mongolia could lead to similar risks as Xinjiang or Tibet,as government policies targeting ethnic assimilation are in place.28F29 EU Forced Labor ban and Corporate Sustainability Due Diligence Directive(CSDDD)The European Union has also a regulation EU forced labor ban29F30,including the possibility of incorporating the ban in addition to the Corporate Sustainability Due Diligence Directive(CSDDD)30F31.The EU has been actively promoting corporate social responsibility(CSR)and responsible business conduct(RBC)through various initiatives,including the implementation of international law instruments such as the United Nations Guiding Principles on business and human rights,the International Labour Organizations Multinational Enterprises Declaration,and the OECD guidelines and guidance.31F32 Several initiatives have been launched starting from the EC communication 201132F33,to the directive 2014/95/EU33F34 and the study commissioned by EU parliament 202034F35.CSR and RBC are widely recognized as crucial concepts for addressing the negative impacts on society and the environment,including within global supply chains.A recent study published in November 2020 examined international law instruments on CSR,such as the UN Guiding Principles on business and human rights,35F36,the ILO-MNE Declaration36F37(International Labour 23 https:/www.csis.org/analysis/operationalizing-g7-commitment-end-forced-labor-global-supply-chains 24 Walk Free Foundation,Global Slavery Index,available at https:/www.walkfree.org/global-slavery-index/downloads/25 Public Law,117-78(2021),available at https:/www.congress.gov/117/plaws/publ78/PLAW-117publ78.pdf 26 China Renewables:The Stretched Ethics of Solar Panels from Xinjiang,The Financial Times(Jan.9,2022),available at https:/ https:/www.state.gov/wp-content/uploads/2021/07/Xinjiang-Business-Advisory-13July2021.pdf 28 Anti-Slavery International,Uyghur Forced Labour in Green Technology,available at https:/www.antislavery.org/reports/uyghur-forced-labour-green-technology/29 https:/ 30 https:/data.consilium.europa.eu/doc/document/PE-67-2024-INIT/en/pdf 31 Legislative Proposal on Sustainable Corporate Governance,European Parliament,Legislative Train(2021),https:/www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-legislative-proposal-on-sustainable-corporate-governance;see also Sustainable Corporate Governance,About this initiative,European Commission,available at https:/ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12548-Sustainable-corporate-governance_en.32 Corporate Social Responsibility Recommendations to the European Commission By the subgroup on CSR of the Multi-Stakeholders Platform on the Implementation of the SDGs in the EU,https:/ec.europa.eu/info/sites/info/files/recommendations-subgroup-corporate-social-responsibility_en.pdf 33 https:/eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0681:FIN:EN:PDF 34 Directive 2014/95/EU amending directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups https:/eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0095&from=EN 35 Corporate social responsibility(CSR)and its implementation into EU Company law https:/www.europarl.europa.eu/RegData/etudes/STUD/2020/658541/IPOL_STU(2020)658541_EN.pdf 36 United Nations Guiding Principles on business&human rights https:/www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf 37 Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy(MNE Declaration)-5th Edition(2017)https:/www.ilo.org/empent/areas/mne-declaration/lang-en/index.htm Task 12 PV Sustainability Review of PV Sustainability Standards 34 Organization Multinational Enterprises)and the OECD guidelines and guidance37F38.Moreover,the European Commission has responded to citizens demand for sustainable business initiatives.CSR as a critical asset to support investment of the energy sector The expansion of sustainable finance,particularly green financing models based on ESG criteria,could significantly impact the energy sectors investment framework.Indeed,to achieve the carbon neutrality target on the front line,four European oil companies such as BP(UK),Shell(UK/NL),Total Energies(France),and Equinor(Norway)have announced in the end of 2024 a$500 million investment commitment to advance access to clean energy in underserved regions38F39.These investments are expected to be deployed in the context of green financing,aligning with UN Sustainable Development Goal 7(UN SDG7),which promotes universal access to affordable,reliable,sustainable,and modern energy.If included in such green financing schemes,the photovoltaic sector will have to meet sustainability criteria including social criteria that are required to access financing from the“sustainable”taxonomy and be integrated into the portfolios of major financial institutions.Under the EU Taxonomy,companies must comply with minimum safeguards including no breach of labour law or human rights and no refusal to engage in stakeholder dialogue with an OECD National Contact Point or the Business and Human Rights Resource Centre(BHRRC).39F40 As an influential and powerful initiative,the UNEP FI40F41(United Nations Environmental Programme Finance Initiative)has developed guidance dedicated to banks and financial institutions to be used as impact analysis of their portfolios41F42.A full model to assess and enable trade-offs between client engagement and portfolios adjustments have been made available.This includes specific sections on Profile Business and Corporate Banking that map the significant impact areas with the main ones related to environment and social criteria.This will clearly incentivize the investors requests for environmental and social data and justifications to develop projects in the sector of renewable energy including photovoltaics.Rights and returns at stakesupported by CSR A report by the Business&Human rights Resource Centre(BHRRC)published in 201842F43 has raised important issues around the lack of consideration regarding CSR of the renewable energy sector.Indeed,47%of the 59 companies surveyed including solar,bioenergy,and geothermal companies“had no public commitment to human rights,no commitment to consultations and no external facing grievance mechanism”.The BHRRCs 2023 report notes that one of the biggest issues for the renewable energy sector and the global transition remains its exposure to the risk of forced labor in Xinjiang.It concludes that in the case of the XUAR,where the severity of the impact is high(as documented by the UN Special Rapporteur on 38 OECD Guidelines for Multinational Entreprises http:/www.oecd.org/daf/inv/mne/48004323.pdf&OECD-Due Diligence Guidance for RBC http:/mneguidelines.oecd.org/OECD-Due-Diligence-Guidance-for-Responsible-Business-Conduct.pdf 39 https:/www.offshore-energy.biz/totalenergies-shell-bp-and-equinor-to-assist-in-tackling-energy-access-woes-with-500m-pledge/40 https:/finance.ec.europa.eu/system/files/2022-10/221011-sustainable-finance-platform-finance-report-minimum-safeguards_en.pdf 41 UNEP FI works with more than 350 members banks,insurers,and investors and over 100 supporting institutions to help create a financial sector that serves people and planet while delivering positive impacts.42 PORTFOLIO IMPACT ANALYSIS TOOL FOR BANKS https:/www.unepfi.org/positive-impact/unep-fi-impact-analysis-tools/portfolio-impact-tool/43 Renewable energy risking rights and returns:Analysis of solar,bioenergy and geothermal companies human rights commitments:https:/media.business-humanrights.org/media/documents/files/Solar_Bioenergy_Geothermal_Briefing_-_Final_0.pdf Task 12 PV Sustainability Review of PV Sustainability Standards 35 Modern Slavery and UN expert body report43F44)and companies lack the ability to undertake human rights due diligence or use their leverage,ending business relationships with suppliers active in or linked to XUAR remains the only tool available for companies that want to ensure supply chains are not at risk of exposure to forced labor.This report provides recommendations directly addressed to investors in the sector to include social criteria in their frameworks.Solar Supply Chain Traceability Protocol Amid growing concerns regarding the sourcing of polysilicon,US Solar Energy Industries Association(SEIA)has taken steps to address these issues by creating standards and procedures aimed at tracing and auditing supply chains for PV materials.44F45 This collective effort has yielded an industry initiative known as the Solar Supply Chain Traceability Protocol”45F46.This protocol places emphasis on integrating product traceability into management systems and operational processes,with key focus areas including leadership commitment,resource allocation,competency development,and effective communication.While this protocol addresses certain aspects of supply chain management,it also has limitations.Notably,the protocol is based on ISO 9001,a quality management standard that primarily concentrates on product traceability.However,it does not comprehensively address social aspects as labor practices.This omission is noteworthy because the identification of potential human rights violations in supply chains hinges on considering these social aspects.Another notable concern is transparency.Despite global pressure and the introduction of the Solar Supply Chain Traceability Protocol,many companies in the solar industry have not disclosed the results of their adherence to these standards.In fact,according to a recent report by Sheffield Hallam University46F47,the solar industry has become less transparent over time.In addition,organizations signing the protocol are also asked to sign a“Solar Industry Commitment to Environmental&Social Responsibility,”often referred to as the“Solar Commitment.”This commitment serves as an industry code of conduct,outlining common practices and expectations related to environmental responsibility,ethical conduct,labour practices,health and safety,and management systems.It draws from the Code of Conduct version 6.0(2018)as a foundational reference(see next section).In conclusion,while the Solar Supply Chain Traceability Protocol and the accompanying Solar Commitment represent efforts to address issues in the solar supply chain,social issues are lacking there.A holistic approach that encompasses social responsibility,labor practices,and transparent reporting with global sustainability objectives.Responsible Business Alliance(RBA)The Responsible Business Alliance(RBA),formerly the Electronic Industry Citizenship Coalition(EICC),is the worlds largest industry coalition dedicated to corporate social responsibility in global supply chains.47F48 The RBA Code of Conduct is a set of social,44 United Nations Human Rights Council,2022.Promotion and protection of all human rights,civil,political,economic,social and cultural rights,including the right to development“Contemporary forms of slavery affecting persons belonging to ethnic,religious and linguistic minority communities”,at:https:/documents.un.org/doc/undoc/gen/g22/408/97/pdf/g2240897.pdf 45 Solar Industry Forced Labor Prevention Pledge,Solar Energy Industries Association(Nov.23,2021),available at https:/www.seia.org/sites/default/files/Solar Industry Forced Labor Prevention Pledge Signatories.pdf.46 Solar Supply Chain Traceability Protocol 1.0:Industry Guidance,Solar Energy Industries Association(Apr.2021),available at https:/www.seia.org/sites/default/files/2021-04/SEIA-Supply-Chain-Traceability-Protocol-v1.0-April2021.pdf.47 Crawford,A.and Murphy,L.T.(2023),“Over-Exposed:Uyghur Region Exposure Assessment for Solar Industry Sourcing,”Sheffield,UK:Sheffield Hallam University Helena Kennedy Centre for International Justice,Online.48 https:/www.responsiblebusiness.org/Task 12 PV Sustainability Review of PV Sustainability Standards 36 environmental and ethical industry standards that aims to ensure that working conditions in industry and its supply chains are safe,that workers are treated with respect and dignity,and that business operations are environmentally responsible and conducted ethically.Although the RBA Code of Conduct originated with the electronics industry in mind,it is applicable to and used by many other industries and is referenced in the EPEAT Ecolabel for Solar(see section 2.2.2).Founded in 2004,the RBA has a 20-year track record of helping companies improve sustainability and human rights in their supply chains.Based on its Code of Conduct,the RBAs Validated Assessment Program includes onsite compliance verification and shareable audits.Independent third-party onsite social audits are an important part of assessing compliance with human rights and environmental requirements as part of a companys corporate sustainability due diligence on its operations and supply chain.48F49 The EU Commissions Guidance on Due Diligence for EU Businesses to Address the Risk of Forced Labour in their Operations and Supply Chains recognizes business networks working in global supply chains,such as the RBA,as a way to take joint action and to make auditing more efficient.In regions where independent audits are possible,the EU Commissions Guidance suggests that third-party social audits can be a useful tool for identifying signs of forced labor.49F50 Solar Stewardship Initiative(SSI)The Solar Stewardship Initiative50F51(SSI)is a sector supply chain sustainability assurance initiative.Initiated in 2022 by SolarPower Europe and Solar Energy UK,today the SSI is a standalone organisation comprising around 50 corporate members and 20 non-industry stakeholders.It is governed by a multi-stakeholder Board,including experts in human rights,sustainability and solar supply chain,from industry,civil society,international financial institutions as well as independent experts51F52.Representing over 60%of global PV modules shipments52F53,53F54.The SSI sets out a framework to help companies enhance responsible sourcing and corporate sustainability practices54F55:The SSI is structured around two standards.The first is the ESG Standard55F56,whose goal is to promote ethical solar panel and component production aligned with international standards.Certification is based on independent third-party audits that include inspections of manufacturing sites,unsupervised worker interviews,and documentation reviews.Companies are assessed under three levels(Bronze,Silver,Gold).Sites that do not allow unrestricted audit access cannot be certified to any of the programs three levels.To drive continuous improvement,companies that do not achieve Gold certification must implement improvement plans before reassessment.In January 2025,the SSI published its first ESG site certificates,56F57 49 COM(2022)71 Proposal of a Directive on Corporate Sustainability Due Diligence,https:/eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52022PC0071 50 Guidance on due diligence for EU businesses to address the risk of forced labour in their operations and supply chains available at https:/media.business-humanrights.org/media/documents/tradoc_159709.pdf 51 https:/www.solarstewardshipinitiative.org/52 https:/www.solarstewardshipinitiative.org/about-ssi/governance/and https:/www.solarstewardshipinitiative.org/news/the-solar-stewardship-initiative-announces-its-multi-stakeholder-board/53 https:/www.solarstewardshipinitiative.org/about-ssi/members/54 https:/www.rts- https:/www.solarstewardshipinitiative.org/app/uploads/2023/11/SSI-Principles.pdf 56 https:/www.solarstewardshipinitiative.org/ssi-standards/esg-standard/57 https:/www.solarstewardshipinitiative.org/news/first-esg-assessments-successfully-completed-and-more-underway-under-the-solar-stewardship-initiative/Task 12 PV Sustainability Review of PV Sustainability Standards 37 and the total pipeline of upcoming ESG site assessments comprised a module production capacity of 100 GW,which is significantly above most estimates for the EUs annual solar installation needs in 2025,commonly cited in the range of 6570 GW57F58.The second SSI standard is the Supply Chain Traceability Standard58F59,which establishes a Chain of Custody to trace materials used in solar production.It defines the structure of traceability management systems that sites must implement,but it does not set targets or restrict sourcing of non-certified materials.In the first year,certified companies must trace materials to the polysilicon level as a minimum.If tracing upstream quartzite is not feasible,a corrective action plan with surveillance assessments must be implemented to ensure progress towards full traceability,albeit without a specific timeline 59F60.The SSI is designed to support compliance with emerging regulatory requirements in the EU,including the Corporate Sustainability Due Diligence Directive(CSDDD)60F61,the Corporate Sustainability Reporting Directive(CSRD)61F62,or the EU Forced Labor Ban Regulation62F63.However,it does not exempt companies from the application of these laws63F64.SSI members are required to assess a minimum of two manufacturing sites during the first year and continuously increase the number of sites assessed64F65,and to report publicly on their sustainability performance.Responsible supply chains in Asia The Responsible Supply Chains in Asia program”65F66 implemented by the International Labour Organization(ILO)from 2015 to 2020 aimed to promote responsible business practices and improve working conditions in supply chains in Asia.The program focused on addressing labor rights issues,including forced labor,child labor,and other forms of exploitation,within global and regional supply chains.The program emphasized multi-stakeholder collaboration involving governments,employers,workers,and other relevant actors to create sustainable and responsible supply chains.It aimed to strengthen the capacity of these stakeholders to understand and address labor rights challenges in supply chains,as well as to foster dialogue and cooperation among them.Key components of the program included:o Research and data collection:The program researched labor rights violations in Asian supply chains,providing a basis for developing targeted interventions and policies.58EU Market Outlook for Solar Power 2024-2028,from:https:/www.solarpowereurope.org/insights/outlooks/eu-market-outlook-for-solar-power-2024-2028/59 Published in December 2024 at:https:/www.solarstewardshipinitiative.org/ssi-standards/supply-chain-traceability-standard/60 https:/www.solarstewardshipinitiative.org/news/the-ssi-lifts-temporary-suspension-of-ja-solar-membership-following-investigation/61 See section 2.1.1.9 of this report.62 See section 2.1.1.5 of this report.63 See section 2.1.1.9 of this report.64 https:/www.solarstewardshipinitiative.org/frequently-asked-questions/65 SSI ESG standard/principles 66 Responsible Supply Chains in Asia(China,Japan,Myanmar,Thailand,Philippines,Vietnam):https:/www.ilo.org/asia/projects/rsca/WCMS_734860/lang-en/index.htm Task 12 PV Sustainability Review of PV Sustainability Standards 38 o Capacity building and awareness-raising:training governments,enterprises and workers organizations,to enhance their skills in promoting responsible business practices and ensuring compliance with labor standards.o Policy and legal framework development:The program supported the development and implementation of policies and legal frameworks at national and regional levels to address labor rights issues in supply chains.This included advocating for the ratification and effective implementation of international labor standards and promoting responsible business conduct.o Public-private partnerships:The program facilitated dialogue and collaboration between the public and private sectors to encourage responsible supply chain management.It sought to establish partnerships that promote fair and decent work,uphold labor rights,and ensure the protection of workers in supply chains.o Knowledge sharing and best practices:The program aimed to disseminate knowledge,share best practices,and promote learning among stakeholders.This included organizing workshops,conferences,and other events to facilitate the exchange of experiences and lessons learned in promoting responsible supply chains.2.1.3 Environmental performance declarations This section covers key aspects of environmental performance declarations,including product category rules(PCRs)and the Sustainable Finance Taxonomy.These elements support standardizing and communicating the environmental impact and sustainability of products and financial activities.Environmental performance declarations Product category rules(PCRs)Sustainable Finance Taxonomy 2.1.3.1 Product category rules(Sectoral Reporting StandardsEnvironmental performance declarations)Product Category Rules provide category-specific guidance for estimating and reporting product life cycle environmental impacts,typically in the form of environmental product declarations(EPDs)and product carbon footprints.A lack of global harmonization between PCRs or sector guidance documents has led to the development of duplicate PCRs for same products.Differences in the general requirements(e.g.,product category definition,reporting format)and LCA methodology(e.g.,system boundaries,inventory analysis,allocation rules,etc.)diminish the comparability of product claims.In Norway,France,Sweden and Italy66F67,specific PCR guidelines are in place for performing EPDs for PV modules since 2020.67F68 Key points include:67 https:/www.epditaly.it/en/pcr_/pcr-for-pv-panel-epditaly-014/68 Product Category Rules-Part B for photovoltaic modules used in the building and construction industry,https:/www.epd-norge.no/getfile.php/1315101-1601554095/PCRer/NPCR 029 2020 Part B for photovoltaic modules 1.1 011020.pdf Task 12 PV Sustainability Review of PV Sustainability Standards 39 Functional Unit:The EPD should define the functional unit,which is typically 1 Wp(watt peak)of manufactured photovoltaic module.The nameplate capacity of the module,as specified in the data sheet,is used to determine the Wp.System Boundaries:The system boundaries should be clearly defined,indicating which processes and components are included in the EPD.For PV modules,its important to exclude components like mounting systems,inverters,and electrical components necessary for connecting the module to the grid.Life Cycle Stages:The EPD should cover the cradle-to-grave life cycle stages of the PV module.This includes stages such as:o A1-A3(Manufacturing Phase):Includes raw material extraction,processing,and manufacturing of the product.o A4(Transport Phase):Covers the transportation of the product to the site of installation.o A5(Installation Phase):Accounts for the installation process,including any materials or energy required.o B1-B7(Use Phase):Represents different aspects of the products operational life,such as maintenance,repair,and energy performance.o C1-C4(End-of-Life Phase):Covers decommissioning,dismantling,waste processing,and final disposal.o D(Beyond the System Boundary-Reuse/Recovery/Recycling Potential):Considers the potential benefits of material recovery,recycling,or reuse after the products life cycle.Reference Service Life:The EPD should specify the reference service life of the PV module.This is the expected duration where the modules actual power output will be no less than 80%of the labelled power output.The reference service life should be supported by third-party validated reports or certificates.If no third-party report is available,a standard reference service life of 25 years for 80%of the labelled power output is typically used.Data Selection:The EPD should provide detailed information on the data selection process.It should specify whether EPDs for upstream processes(such as cell,wafer,ingot,or solar grade semiconductor production)are available or if specific data or adjusted generic data from databases are used as proxies.To ensure credibility,the Norwegian EPD guidelines recommend that the electricity mix utilized during the production of components such as cells,wafers,ingot blocks,Silicon on Glass(SoG),solar substrates,solar superstrates,or other solar-grade semiconductor materials should align with the national grid mix of the production country.This includes considerations for imports,direct emissions,infrastructure,and transmission losses.The use of electricity derived from guarantees of origin is not permitted for modeling electricity in the PV value chain in EPDs;however,Life Cycle Impact Assessment(LCIA)results using such electricity can be provided as supplementary environmental data.(Norge,E.,n.d.)Impact Assessment:The EPD must assess environmental impacts of the PV module throughout its life cycle.This assessment typically covers categories such as global warming potential,energy use,water use,and resource depletion.Additional Technical Information:The EPD should provide technical information about the PV module,such as the total mass,rated output,area,number of cells,and conversion factors.The EPD should also specify the technology type(e.g.,mono-Si,multi-Si,CIGS,CdTe)and any specific degradation rates or material consumptions.Task 12 PV Sustainability Review of PV Sustainability Standards 40 Declaration of Environmental Parameters:the environmental parameters derived from the LCA(Life Cycle Assessment),such as environmental impacts,resource use,water use,electricity use,and waste categories.Additional Information:The EPD may include data on dangerous substances,carbon footprint,and other relevant details.Specific Product environmental footprint category rules for photovoltaic modules,is a European Commission initiative that has been included under Regulatory Frameworks,in section 2.3.2.3 2.1.3.2 Sustainable Finance Taxonomy(Sectoral Reporting StandardsEnvironmental performance declarations)The Sustainable Finance Taxonomy is a classification system created by the EU in 202068F69 to define and categorize economic activities that contribute to environmental sustainability.The main goal of the taxonomy is to provide a common language and framework for identifying environmentally sustainable activities,helping investors,companies,and policymakers align their actions with climate and environmental objectives.The Sustainable Finance Taxonomy was established as part of the EUs efforts to transition towards a more sustainable and low-carbon economy.It was developed by the Technical Expert Group on Sustainable Finance(TEG)and forms a crucial component of the EUs Sustainable Finance Action Plan.The taxonomy aims to address greenwashing(misleading environmental claims)and facilitate sustainable investments by providing clear criteria for determining whether an economic activity is environmentally sustainable.The taxonomy focuses on six environmental objectives:Climate change mitigation Climate change adaptation Sustainable use and protection of water and marine resources Transition to a circular economy Pollution prevention and control Protection and restoration of biodiversity and ecosystems The Sustainable Finance Taxonomy provides specific criteria and thresholds that economic activities,including PV manufacturing and PV electricity production,must meet to be considered environmentally sustainable.Here are some key recommendations for these sectors:PV Manufacturing:Climate Change Mitigation:PV manufacturing should contribute to reducing GHG emissions.For example,the manufacturing process should have low emissions of CO2 and other GHGs.Resource Efficiency:The use of resources,such as raw materials and water,should be efficient and sustainable.Chemical Use:The manufacturing process should avoid the use of hazardous substances and minimize chemical risks.PV Electricity Production:69 https:/eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32020R0852 Task 12 PV Sustainability Review of PV Sustainability Standards 41 Climate Change Mitigation:PV electricity production should significantly reduce GHG emissions compared to conventional fossil fuel-based electricity generation.Resource Efficiency:The PV systems design and operation should aim for resource efficiency,optimizing energy output while minimizing resource use.Environmental Impact:The PV electricity production should have minimal environmental impact on ecosystems,land use,and biodiversity.Its important to note that the specific criteria and thresholds for PV manufacturing and PV electricity production may be periodically updated as scientific knowledge advances and technology improves.Companies involved in these sectors can use the Sustainable Finance Taxonomy as a guide to assess their environmental sustainability and align their practices with the EUs climate and environmental objectives.2.1.4 Other industry benchmarks and best practices Other industry benchmarks and best practices Carbon accounting ISO 14060 family standards PAS 2050 GHG Protocol ISO 14040 family Product Environmental Footprint(PEF)BP X30-323-0(AFNOR)EN 15804:2012 A2:2019/AC:2021 Solar Bankability TV SD Intertek PV ModuleTech Organization Business&Human Rights Silicon Valley Toxics Coalition scorecard Solar Power Europe Sustainability Best Practices Report Solarcentury report ADEME Roadmap Beyond the Megawatt Sustainability practices,in the context of solar PV module manufacturing process and generally,cover aspects such as responsible life cycle management that minimizes environmental impacts,and having the smallest environmental footprint;e.g.,carbon footprint or water consumption.The energy payback time is another parameter that is commonly used.It accounts for the amount of time a PV module or system must operate to recover the energy required to produce it(Table 3).Task 12 PV Sustainability Review of PV Sustainability Standards 42 Table 3.Common sustainability practices in the PV module manufacturing industry Responsible life cycle management-Minimize environmental impacts-Enhance the social and economic benefits across their life cycle-Implement best practices from raw material sourcing to product end-of-life Smallest environmental footprint-Smallest life cycle carbon footprint(gCO2e/kWh)-Lowest life cycle water consumption(litres/MWh)-Fastest energy payback time(in years)2.1.4.1 Carbon accounting(Sectoral reporting standardsOther industry benchmarks and best practices)There is a range of product carbon footprint standards that have been developed in response to the need for transparency about GHG emissions of products at different points in time and by different organizations.The current methodologies may be grouped into two families:Group 1:Single-issue methodologies,covering only emissions and impacts related to climate change.o The ISO 14060 family of standards(notably,14067 and 14064)o National standards such as PAS 2050 o The GHG Protocol Product Standard Group 2:Methodologies that have a broader scope,covering environmental issues beyond climate change.You can use the indicator for climate change from these methodologies to determine the product carbon footprint(PCF).o ISO 14040 family(14040 and 14044).They cover life cycle assessment(LCA)studies and life cycle inventory(LCI)studies.o The Product Environmental Footprint(PEF).This EU-recommended method to perform LCA studies aims to harmonize existing LCA standards.It requires 16 impact categories to be calcula
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Biodiversity and responsible sourcing for wind and solar developmentsAn overview and action agendaClaire Fletcher,Leon Bennun,Ben Jobson,Laura Sonter,Lucy Murrell,Rachel Asante-Owusu,Qiulin LiuINTERNATIONAL UNION FOR CONSERVATION OF NATUREAbout IUCNIUCN is a membership Union uniquely composed of both government and civil society organisations.It provides public,private and non-governmental organisations with the knowledge and tools that enable human progress,economic development and nature conservation to take place together.Created in 1948,IUCN is now the worlds largest and most diverse environmental network,harnessing the knowledge,resources and reach of more than 1,400 Member organisations and around 17,000 experts.It is a leading provider of conservation data,assessments and analysis.Its broad membership enables IUCN to fill the role of incubator and trusted repository of best practices,tools and international standards.IUCN provides a neutral space in which diverse stakeholders including governments,NGOs,scientists,businesses,local communities,Indigenous Peoples Organisations and others can work together to forge and implement solutions to environmental challenges and achieve sustainable development.Working with many partners and supporters,IUCN implements a large and diverse portfolio of conservation projects worldwide.Combining the latest science with the traditional knowledge of local communities,these projects work to reverse habitat loss,restore ecosystems and improve peoples well-being.www.iucn.org https:/ The Biodiversity ConsultancyThe Biodiversity Consultancy is a specialist consultancy in biodiversity risk management.We work with sector-leading clients to integrate nature into business decision-making and design practical environmental solutions that deliver nature-positive outcomes.We provide technical and policy expertise to manage biodiversity impacts at a project level and enable purpose-driven companies to create on-the-ground opportunities to regenerate our natural environment.As strategic advisor to some of the worlds largest companies,we lead the development of post-2020 corporate strategies,biodiversity metrics,science-based targets,and sustainable supply chains.Our expertise is applied across the renewable energy sector,including hydropower,solar,wind,and geothermal,where we specialise in the interpretation and application of international finance safeguards.https:/ https:/ and responsible sourcing for wind and solar developmentsAn overview and action agendaClaire Fletcher,Leon Bennun,Ben Jobson,Laura Sonter,Lucy Murrell,Rachel Asante-Owusu,Qiulin LiuThe designation of geographical entities in this publication,and the presentation of the material,do not imply the expression of any opinion whatsoever on the part of IUCN or other participating organisations concerning the legal status of any country,territory,or area,or of its authorities,or concerning the delimitation of its frontiers or boundaries.The views expressed in this publication do not necessarily reflect those of IUCN or other participating organisations.IUCN is pleased to acknowledge the support of its Framework Partners who provide core funding:Ministry of Foreign Affairs,Denmark;Ministry for Foreign Affairs,Finland;Government of France and the French Development Agency(AFD);Ministry of Environment,Republic of Korea;Ministry of the Environment,Climate and Sustainable Development,Grand Duchy of Luxembourg;the Norwegian Agency for Development Cooperation(Norad);the Swedish International Development Cooperation Agency(Sida);the Swiss Agency for Development and Cooperation(SDC);and the United States Department of State.This publication has been made possible in part by funding from EDF Renouvelables,lectricit de France(EDF),Energias de Portugal(EDP),Eni S.p.A,Equinor ASA,Iberdrola Renovables International SAU,Shell International Petroleum Mij Bv The Netherlands,and Total SE.Published by:IUCN,Gland,Switzerland and The Biodiversity Consultancy,Cambridge,UK Produced by:IUCN Global Climate Change and Energy Transition Team and The Biodiversity Consultancy Copyright:2025 IUCN,International Union for Conservation of Nature and Natural Resources Reproduction of this publication for educational or other non-commercial purposes is authorised without prior written permission from the copyright holder provided the source is fully acknowledged.Reproduction of this publication for resale or other commercial purposes is prohibited without prior written permission of the copyright holder.Recommended citation:Fletcher,C.,Bennun,L.,Jobson,B.,Sonter,L.,Murrell,L.,Asante-Owusu,R.,Liu,Q.(2025).Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda.Gland,Switzerland:IUCN,and Cambridge,UK:The Biodiversity Consultancy.Copy-editing and layout:Diwata HunzikerCover photo:Biodiversity and responsible sourcing for wind and solar developments visualised/Photo:Ideogram,AI-generatedBiodiversity and responsible sourcing for wind and solar developments:An overview and action agendaiiiList of boxes,figures,and tables vAcknowledgements viAcronyms viiGlossary ix1 Introduction 11.1 Materials and the renewable energy transition 11.2 Scope and aims 3 2 The context for responsible sourcing 52.1 What is responsible sourcing?52.2 Drivers for responsible sourcing 73 Key minerals and metals for wind and solar development 83.1 Key minerals and metals 83.1.1 Wind power 83.1.2 Solar power 93.2 Demand and supply risks 103.3 Mining impacts on biodiversity 123.4 Mitigating biodiversity impacts of mineral and metal supply 15 4 Initial action on responsible sourcing and biodiversity for wind and setting solar developers 164.1 Overview 164.2 Sustainability challenges in renewables supply chains 164.3 Responsible sourcing and the project cycle 194.4 Actions for developers 214.4.1 Map supply chain 224.4.2 Identify company commitments,targets,and mitigation opportunities 244.4.3 Engage collaboratively for transformative change 244.4.4 Implement action plans for responsible sourcing 284.4.5 Summary of actions for developers 29References 30Table of contentsivBiodiversity and responsible sourcing for wind and solar developments:An overview and action agendaAnnexesAnnex I Summary of existing initiatives,guidance,and certification and verification schemes relevant for minerals and metals 41 Annex I-A Industry associations and initiatives 42 Annex I-B Certification bodies and standards 45 Annex I-C Guidance 46Annex II Factsheets for key minerals 48 Annex II-A Iron 48 Annex II-B Zinc 48 Annex II-C Copper 49 Annex II-D Aluminium 49 Annex II-E Lead 50 Annex II-F Indium 50 Annex II-G Molybdenum 51Annex III Case studies 52 Annex III-A ICMM position on nature 52 Annex III-B RE-SOURCING Project 53Annex IV Further reading 54Biodiversity and responsible sourcing for wind and solar developments:An overview and action agendavBox 1 Global goals for biodiversity 2Box 2 Clarifying the terms mineral and metal 4Box 3 Ongoing international processes guiding the renewable energy transition and responsible materials sourcing 6Box 4 Deep-sea mining of critical metals and minerals 14Box 5 Spheres of company influence and biodiversity target setting 17Box 6 The importance of moving towards a circular economy 22Box 7 Key tools for supply chain footprinting 25 Figure 1 The renewables transition:Overview of the issues related to responsible sourcing and the scope of this guidance 4Figure 2 Simplified flowchart of mineral ore processing,metal recovery,and manufacturing 4Figure 3 Overview of key metal requirements and supply chain for wind power 8Figure 4 Overview of key metal requirements and supply chain for solar PV 9Figure 5 Projected annual mineral and metal demand under a 2C warming scenario from energy technologies in 2050,compared to 2018 production levels 11Figure 6 Cumulative requirement for minerals and metals through to 2050 for wind and solar under different climate and demand scenarios 11Figure 7 Global mining area and related biodiversity loss 14Figure 8 Sphere of control and spheres of influence relevant for companies acting on biodiversity 17Figure 9 A simplified overview of key actors across mineral supply chains 19Figure 10 Example of simple supply chain tiers for a wind farm development 20Figure 11 The waste management hierarchy 21Figure 12 Summary of initial actions for wind and solar developers on responsible sourcing and biodiversity 29Figure 13 RE-SOURCING vision for the renewable energy sector 53Table 1 Summary of key drivers for responsible sourcing 7Table 2 Summary of key responsible sourcing actions to address biodiversity impacts 26List of boxes,figures,and tablesviBiodiversity and responsible sourcing for wind and solar developments:An overview and action agendaAcknowledgementsThe following people have made contributions to the contents of this publications as the participants of the IUCN Promoting Nature-friendly Renewable Energy Developments project:Tris Allinson(BirdLife International);Audrey Bard(Equinor);Guillaume Capdevielle(Total SE);Melanie Dages(EDF Renewables);Michelangelo DAbbieri(Eni Plenitude);Astrid Delaporte-Sprengers(Total SE);Steven Dickinson(Total SE);Gustavo Estrada(Eni);Alessandro Frangi(EDF Renewables);Monica Fundingsland(Equinor);Annalisa Silvia Gattulli(Eni Plenitude);Michael Howard(Fauna&Flora International);Agathe Jouneau(EDF Renewables);Marine Julliand(TotalSE);Peter Marcus Kolderup Greve(Equinor);Adele Mayol(Total SE);Bruce McKenney(TheNature Conservancy);Thomas Merzi(Total SE);Marta Morichini(Eni);Daniel Meyer(Fauna&Flora International);Paola Maria Pedroni(Eni);Magali Pollard(Total SE);Howard Rosenbaum(Wildlife Conservation Society);Marcus van Zutphen(Shell);Jose Rubio(Fauna&Flora International);Libby Sandbrook(Fauna&Flora International);Ariane Thenaday(Total SE);Claire Varret(EDF);Hafren Williams(Fauna&Flora International);Margherita Zapelloni(Eni Plenitude).Disclaimer BirdLife International chose not to receive funding for its contribution to this project,as per their Working with Business Framework.Biodiversity and responsible sourcing for wind and solar developments:An overview and action agendaviiAcronymsARMAlliance for Responsible MiningASIAluminium Stewardship InitiativeASMArtisanal and small-scale miningBCGBoston Consulting GroupBECSBiodiversity extent,condition,significanceCBDConvention on Biological DiversityCEM(IUCN)Commission on Ecosystem ManagementCETMCritical Energy Transition MineralsCMCopper MarkCMMICritical Minerals Mapping InitiativeCOPConference of the PartiesCRAFTCode of Risk-mitigation for ASM Engaging in Formal TradeCSDDD(EU)Corporate Sustainability Due Diligence DirectiveCSMClimate Smart MiningCSRD(EU)Corporate Sustainability Reporting DirectiveEBRDEuropean Bank for Reconstruction and DevelopmentESGEnvironmental,Social and GovernanceETCEnergy Transitions CommissionETTIExtractive Industries Transparency InitiativeGHGGreenhouse gasGIIPGood International Industry Practice GRIGlobal Reporting InitiativeGWGigawattIAIInternational Aluminium InstituteICAInternational Copper Association ICMMInternational Council on Mining and MetalsIEAInternational Energy AgencyIFCInternational Finance CorporationIIMAInternational Iron Metallics AssociationIMEC(IUCN)Impact Mitigation and Ecological Compensation Thematic GroupIRENAInternational Renewable Energy AgencyIRMAInitiative for Responsible Mining AssuranceIUCNInternational Union for Conservation of NatureIZAInternational Zinc AssociationKMGBFKunming-Montreal Global Biodiversity FrameworkviiiBiodiversity and responsible sourcing for wind and solar developments:An overview and action agendaLCALife cycle assessmentMWMegawattNNLNo Net LossNPI Net Positive ImpactOECDOrganisation for Economic Co-operation and DevelopmentPDFPotentially disappeared fraction of species metric PVPhotovoltaicRBIResponsible Business AllianceREERare earth elementsRMAPResponsible Mineral Assurance ProcessRMIResponsible Minerals InitiativeSBTNScience-Based Targets for NatureSDGSustainable Development GoalSEIASolar Energy Industry AssociationSSISolar Stewardship InitiativeSTAR(IUCN)Species Threat Abatement and Restoration(metric)TBCThe Biodiversity ConsultancyTNCThe Nature ConservancyTNFDTaskforce on Nature-related Financial DisclosureTSMTowards Sustainable Mining USGSU.S.Geological SurveyWWFWorld Wildlife FundBiodiversity and responsible sourcing for wind and solar developments:An overview and action agendaixGlossaryAlloyMade by mixing two or more metallic elements to form a new,unique substance that has differing chemical and physical properties to its component parts.Over 90%of the metals in use today are alloys.The most common alloys are broadly classified as steels(ICMM,n.d.).BeneficiationThe treatment of raw material(such as iron ore)to improve physical or chemical properties especially in preparation for smelting.DecarbonisationBoth a method of climate change mitigation and the process of significantly reducing or eliminating carbon dioxide(CO2)and other GHG emissions from the atmosphere.EcotoxicityEcotoxicity refers to the capability of a compound or any physical agent to have a harmful effect on the environment,organisms,or both.Good International Industry Practice(GIIP)Defined as the exercise of professional skill,diligence,prudence,and foresight that would reasonably be expected from skilled and experienced professionals engaged in the same type of undertaking under the same or similar circumstances globally or regionally(IFC,2012a)Life Cycle Assessment(LCA)A standardised method tool for assessing the environmental footprint of a product,process,service,or corporation from cradle to grave.Mineral Solid,naturally occurring inorganic substances found in the Earths crust.They have a unique chemical composition and crystal structure(ICMM,n.d.).Mitigation hierarchyThe sequence of actions to anticipate and avoid impacts on biodiversity and ecosystem services;and where avoidance is not possible,minimise;and,when impacts occur,rehabilitate or restore;and where significant residual impacts remain,offset(CSBI&TBC,2015).Metal Elementary substances,such as gold,silver and copper.They are crystalline when solid and naturally occur in minerals.They are often good conductors of electricity and heat,shiny and malleable.The metals we use day-to-day are converted from metallic ores to their final form.*This usually requires the use of chemicals and special technology(ICMM,n.d.).*See ICMM for definitions of precious metals,base metals,ferrous,and non-ferrous metals.xBiodiversity and responsible sourcing for wind and solar developments:An overview and action agendaMetalloidAn element whose properties are intermediate between those of metals and those of solid non-metals or semiconductors.No Net LossThe point at which project-related impacts on biodiversity are balanced by measures taken through the application of the mitigation hierarchy.Net Positive Impact(or Net Gain)The point at which project-related impacts on biodiversity are outweighed by measurable outcomes from actions taken through the application of the mitigation hierarchy to achieve sustainable biodiversity gains.Potentially disappeared fraction(PDF)The proportion of species going extinct locally(over a unit of area or volume)in response to external pressures(e.g.land use),usually over one year(unit:PDF.m2.year or PDF.m3.year).Rare earth metals,or rare earth elementsThese are not actually all that rare,but their extraction is complex and difficult.They include scandium,yttrium,lanthanum and the 14 elements(lanthanides)following lanthanum in the periodic table.They have widespread uses,though in small volume,in the manufacturing of glass,ceramics,glazes,magnets,lasers,and television tubes,as well as in refining petroleum(ICMM,n.d.).Species.yearA variant of PDF in which the PDF result is multiplied by species density to enable comparison between impacts in different realms(albeit with some coarse assumptions about species distribution and sensitivity to impacts).Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda11.1 Materials and the renewable energy transitionThe need to transition to a lower carbon,nature-safe renewable energy-based economy is more urgent than ever(WWF&BCG,2023;WWF&TBC,2023).The Paris Agreement sets a stringent target of limiting global warming to 2C above pre-industrial levels by 2050,1 emphasising the necessity of urgent,rapid,and extensive renewable energy adoption to achieve this goal.Delays in implementing low carbon energy solutions as part of the transition from fossil fuels to renewable energy will severely hinder progress towards this goal.In parallel,the more recently adopted Kunming-Montreal Global Biodiversity Framework(KMGBF)has the overall vision of achieving full recovery of nature by 2050,and by 2030 aims to halt and reverse biodiversity loss to sustain a healthy planet,whilst delivering benefits essential for human well-being and economic prosperity for all people(Box1).These global climate and nature goals highlight that the transition to low-carbon energy cannot occur in isolation,nor in a vacuum achieving them both requires combining efforts to reduce greenhouse gas(GHG)emissions with biodiversity conservation and ensuring they are mutually beneficial(action on climate is not necessarily inherently good for biodiversity(Dunne,2022).Further,lack of access to energy remains a critical challenge in many countries,subjecting many people to a life of poverty.Addressing this challenge through the rapid deployment of renewable energy is paramount in 2023 at the halfway point for achieving the 2030 Sustainable Development Goals(SDGs)the world was currently not on track to achieve SDG 7 ensuring access to affordable,reliable,sustainable 1 To achieve the Paris Agreement goal,greenhouse gas(GHG)emissions must peak before 2025 at the latest and decline 43%by 2030.However,global GHG emissions continue to increase,for various reasons(IPCC,2023a).and modern energy for all(IEA,2023;IEA etal.,2023;Roser,2020).All of these implies the need to transform the way societies are operating to address the current biodiversity and ecosystem collapse and work towards a just and nature-positive future(Box1).However,whilst large-scale decarbonisation of global power infrastructure is essential to meeting climate goals,it must not happen at the expense of nature(Gasparatos etal.,2017;TNC,2021)especially as this would likely reduce the efficacy of decarbonisation efforts.As wind and solar energy projects proliferate worldwide,policy makers,investors,and conservationists are recognising the need for enhanced responsible sourcing practices for biodiversity,including improved circularity,to ensure consistency of supply chains and to meet the increasing demand for scarce minerals and metals.The current production and processing of minerals and other materials will need to scale up substantially to meet this demand.There are concerns that this will exacerbate threats to biodiversity above and beyond those from traditional mining due to the greater overlap between mineral deposits for transition materials and areas of biodiversity importance(Sonter etal.,2020a).Itis therefore crucial to ensure good practice and robust implementation of the mitigation hierarchy when identifying and operating new mining concessions,with the impetus and requirements flowing down from those corporates sourcing these materials through their supply chains.The issues are many and complex,often extending beyond the influence of a single developer(Section4.2).Hence,identifying the ways in which developers can start taking action to engage in and improve responsible sourcing for biodiversity and wind and solar developments is key to a renewable energy transition that supports both climate and nature goals.Introduction12Biodiversity and responsible sourcing for wind and solar developments:An overview and action agendaBox 1Global goals for biodiversityIn December 2022,global goals for biodiversity were adopted via the Kunming-Montreal Global Biodiversity Framework(KMGBF)(CBD,2022).This historic intergovernmental agreement is also an explicit call to action for the private sector,requiring all sectors of society to contribute towards its delivery(Booth etal.,2023).The key elements of the KMGBF are four long-term goals to achieve the 2050 vision,that“by 2050,biodiversity is valued,conserved,restored and wisely used,maintaining ecosystem services,sustaining a healthy planet and delivering benefits essential for all people”,including 23 action-oriented global targets to achieve the 2030 mission in short,“to take urgent action to halt and reverse biodiversity loss to put nature on a path to recovery”(CBD,2022).Goal A addresses biodiversity outcomes and includes elements to enhance ecosystem area and integrity,restore species populations and prevent extinctions,and safeguard genetic diversity.Targets for 2030 address threat reduction and restoration,sustainably meeting peoples needs,and means of implementation.Threat-reduction and restoration targets are especially relevant in the roll out and expansion of renewable energy development globally.These include targets related to:i)inclusive spatial planning and halting loss of high biodiversity importance areas(Target 1);ii)effective restoration of at least 30%of degraded areas of ecosystems(Target 2);iii)effective conservation and management of at least 30%of land and sea(Target 3);and iv)urgent action to halt extinctions and ensure conservation and recovery of species(Target 4).Target 14 calls for governments to integrate biodiversity across all policies and plans,including strategic environmental assessments and environmental impact assessments,at all levels of government and across all sectors,“progressively aligning all relevant public and private activities,and fiscal and financial flows”(CBD,2022,p.11)with the KMGBF.Target 15 requires government to take measures that ensure businesses assess and disclose their biodiversity-related risks,dependencies and impacts,along value chains and across portfolios,“in order to progressively reduce negative impacts on biodiversity,increase positive impacts,reduce biodiversity-related risks to business and financial institutions,and promote actions to ensure sustainable patterns of production”(CBD,2022,p.11).The concept of nature positive:The nature positive concept is emerging as an inclusive and ambitious rallying call that aligns with the KMGBF(Booth etal.,2023).Nature is often used as shorthand for biodiversity,but it is a broader concept that also encompasses non-living components,such as climate,air,soil,and water.Conservation and business forums are increasingly converging on the nature-positive concept(zu Ermgassen etal.,2022)to achieve the 2030 and 2050 goals of the KMGBF and drive transformative change in the relationship between business and nature.There is no single agreed definition for the term nature positive,and several are in use.In line with the KMGBF,the Nature Positive Initiative defines it as to“halt and reverse nature loss by 2030 on a 2020 baseline and achieve full recovery by 2050”.The UK Council for Sustainable Business says“a nature-positive approach puts nature and biodiversity gain at the heart of decision-making and design.It goes beyond reducing and mitigating negative impacts on nature as it is a proactive and restorative approach focused on conservation,regeneration,and growth”(zu Ermgassen etal.,2022,p.3).Although debate continues on what nature positive means for business(Milner-Gulland,2022;zu Ermgassen etal.,2022),it is generally viewed as a broad societal goal to which businesses and civil society can contribute,rather than a specific project or organisational-level objective.The idea of nature positive emerges from the urgent need to conserve and restore nature,with widespread recognition of the pace at which species and ecosystems are disappearing and the scale of risk this poses to business and society(Dasgupta,2021;IPBES,2019;WWF,2022).Nature positive moves beyond traditional corporate approaches,such as No Net Loss(NNL)or Net Positive Impact(NPI)of biodiversity,in three main ways(TBC,2022):i)a broader scope,encompassing all of a companys value chain and integrating all of nature;ii)clearer alignment with global goals requiring absolute improvements in the state of nature,not just slowing down its loss;and iii)emphasis on both mainstreaming nature in corporate structures and processes,and broader,transformational systems change that goes beyond any single company.Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda3Box 1(continued)The KMGBF does not include the term nature positive,rather it embeds this purpose and clear direction for the journey towards collective action for biodiversity.It also signals increasing stakeholder expectations for the role of business in supporting efforts to halt and reverse biodiversity loss,including in the text of Target 15.The IUCN Commission on Ecosystem Management(CEM),through the Impact Mitigation and Ecological Compensation Thematic Group(IMEC),has developed a technical paper,Nature positive for business,Developing a common approach(Baggaley etal.,2023),to provide businesses with a better understanding of approaches that can contribute to the global goal of nature positive.Application of the mitigation hierarchy is central to a nature positive approach(Maron etal.,2023).This means strongly prioritising impact avoidance and minimisation,whether at project,landscape or systems levels.To meet the KMGBF and nature positive goals for nature recovery,further conservation actions will also then be needed to obtain an overall net gain of biodiversity.Contributed by The Biodiversity Consultancy1.2 Scope and aimsFigure1 illustrates the renewables transition and the key issues related to materials sourcing,highlighting the scope of this document.It is aimed primarily at developers of wind and solar projects and transmission infrastructure,who primarily source composite goods(e.g.wind turbines and solar panels).The key aim of this document is to outline how developers can start to act on supply chain biodiversity impacts2 by improving traceability and sourcing practices through,for example(Section4):Mapping supply chains;Identifying mitigation opportunities,including adopting high-quality voluntary environmental standards,sourcing from suppliers that use sustainability-certified inputs(under existing schemes),and using trusted third-party auditors for verification;Industry-wide engagement and collaboration with key suppliers,using purchasing power to drive improvements;Implementing action plans to guide and monitor these actions.2 This document acknowledges the need for socially responsible sourcing.Ecosystem services impacts and impacts on human well-being and economy are not specifically addressed in this document.However,assessing such impacts is a fundamental part of robust strategic and project-level assessments aligned with global goals and targets,and for a just energy transition.Since the actions outlined are early and preparatory,there is also broader applicability to other technologies,as well as for manufacturers who are the direct suppliers of wind and solar developers,and who source processed minerals as inputs(Sections 4.2 and 4.3).This guidance also provides some of the key context for meaningful action by:Outlining the context for responsible sourcing(Section2);Highlighting the most important minerals and metals(Box2)needed for wind and solar development and summarising the potential impacts on biodiversity related to their sourcing and processing(Section3);Outlining the challenges and opportunities associated with responsible sourcing(Sections 4.2 and 4.3);Summarising the major existing relevant initiatives,guidance and third-party verification schemes for metals and minerals(Annex I).4Biodiversity and responsible sourcing for wind and solar developments:An overview and action agendaFigure 1 The renewables transition:overview of the issues related to responsible sourcing,and the scope of this guidance Source:Authors.Box 2Clarifying the terms mineral and metalMinerals are solid,naturally occurring inorganic substances found in the Earths crust and have unique chemical composition and crystal structure(ICMM,2024a).Metals are elementary substances that are crystalline when solid and naturally occur in minerals(ICMM,2024a).All renewable energy technologies require metals(and alloys),which are produced by processing mineral-containing ores(IEA,2021).Ores are raw,economically viable rocks that are mined and beneficiated to liberate and concentrate the minerals of interest.These minerals are further processed to extract the metals or alloys of interest,which are then used in end-use applications(IEA,2021)(Figure 2 below).With respect to the specific materials essential to the renewable energy transition,there are several terms in use that are intended to denote both their strategic or economic importance as well as the risk of supply shortage or price volatility(Sovacool etal.,2020).These include critical raw materials,technologically critical elements,critical materials,critical minerals,and energy transition minerals.There is no single definition for what constitutes a critical mineral or metal.In some instances,it may be defined in national policy or law and may change over time.Contributed by The Biodiversity ConsultancyFigure 2 Simplified flowchart of mineral ore processing,metal recovery,and manufacturing Source:Adapted from Pradip etal.(2019,p.2160).MiningMineral processingSmeltingManufacturingOpen pitUndergroundLiberation(e.g.crushing)of valuable mineralsSeparation from waste material E.g.Heat treatment,rollingEnd productHeat and chemical treatment to extract metals Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda52.1 What is responsible sourcing?Whilst there is no single global definition for the term responsible sourcing,it is generally used in the context of Environmental,Social and Governance(ESG)considerations,especially for organisations with complex and diversified supply chains.Broad definitions include“the management of social,environmental and/or economic sustainability in the supply chain through production data”(vanden Brink etal.,2019,p.389).Similar terms like responsible purchasing(Leire&Mont,2010;Mont&Leire,2009)and sustainable supply chain management(Sauer&Seuring,2017)are also in use.In the context of mining and minerals,the International Council on Mining&Metals(ICMM)Guide to Responsible Sourcing(ICMM,2015)addresses two main activities in responsible sourcing:Internal:focusing on sustainable procurement.This relates to actions integrating environmental,social,and broader cost considerations into procurement processes.This is based on the significant leverage afforded to ICMM members to reduce impacts and optimise benefits through their combined purchasing power.External:focusing on the provision or responsible supply of minerals and metals that meet agreed-upon environmental and social performance standards or criteria.This is typically triggered by end-use markets in conjunction with other stakeholders(e.g.non-governmental organisations,or NGOs).For ICMM members,this involves understanding and meeting(as appropriate)expectations of downstream customers and other key stakeholders by responding to,or initiating,programmes to document environmental,social and governance performance along a minerals and metals supply chain.Fundamentally,sourcing the materials necessary to support the transition to renewable energy must not undermine the overarching objectives of the transition itself.However,the related expansion in extraction,processing and production of minerals and metals,and of renewable energy project component parts,could have significant negative impacts on biodiversity,if not properly managed(Section3.3).This means that in the context of mining and metals,the external focus for responsible sourcing also extends to working with reliant industries to shift demand towards materials and practices that align with the transformative nature positive concept(Box1).In early 2024,ICMM issued a position statement with a five-point plan for nature(Annex III)setting out ICMM members approach to contributing to a nature positive future,which includes collaborating across value chains and catalysing wider change to create the conditions required to achieve systems transformation.Box3 summarises some other international processes designed to guide the renewable energy transition and responsible sourcing.The context for responsible sourcing26Biodiversity and responsible sourcing for wind and solar developments:An overview and action agendaBox 3Ongoing international processes guiding the renewable energy transition and responsible materials sourcingThe Global Investor Commission on Mining 2030 is a collaborative investor-led initiative launched in 2022,with a mission“to develop a consensus about the role finance has in realising a vision of a socially and environmentally responsible mining sector overall by 2030 that:has a clear social license to operate,can meet the needs of society in a responsible manner without driving conflict or corruption,operates in a way that respects planetary boundaries,and positively contributes to social development and the environment,today and tomorrow”(Global Investor Commission on Mining 2030,n.d.).The initiative recognises the important role of the mining industry in society and the transition to a low carbon economy and aims to ensure that the sector leaves a positive legacy by addressing key systemic risks holistically.There are 10 focus areas,three of which are biodiversity,land,and protected areas.The end goal is a practical implementation plan for investors to see this vision realised by 2030(Global Investor Commission on Mining 2030,n.d.).The Energy Transitions Commission(ETC),created in 2015,is a global coalition of leaders from across the energy landscape who are committed to achieving net-zero emissions by mid-century,in line with the Paris climate objective of limiting global warming to well below 2C and ideally to 1.5C.ETC analysis has demonstrated that achieving this goal is technically and economically possible,requiring immediate,decisive,and collective action from policy makers,industry players,financial institutions and civil society organisations.The ETC currently comprises 58 commissioners from a range of organisations,including energy producers,energy-intensive industries,technology providers,finance players,and environmental NGOs.ETC work is focused on three types of programme:regional programmes,energy programmes,and sector decarbonisation programmes.In particular,energy programmes focus on driving the ramp-up of clean energy provision at scale and pace.The Global Council for Responsible Transition Minerals was launched in 2023 on the sidelines of the 6th Edition Paris Peace Forum,as an independent high-level group working to further multistakeholder collaboration towards a sustainable supply of transition minerals.The Council was formed due to the projected steep increase in demand for minerals essential for the manufacturing of technologies associated with the transition towards net-zero.Council members aim to raise political awareness around the crucial importance of these minerals to reach the Paris Agreement goals and address the issues around their responsible supply by making global recommendations and proposing collaborative solutions.The Global Council for Responsible Transition Metals was formed by members of the Transition Minerals Initiative,which was itself launched during the 2022 5th Edition Paris Peace Forum as the Acting Together for a Responsible Transition Minerals Sector initiative,along with a Call to Action around the sustainable sourcing of minerals necessary to the green transition.The UN Secretary Generals Panel on Critical Energy Transition Minerals,first proposed at COP28 in 2023,brings together governments,intergovernmental and international organisations,industry.and civil society,to develop a set of common and voluntary principles to build trust,guide the transition,and accelerate the race to renewables.It builds on existing standards and initiatives,particularly the Working Group on Transforming the Extractive Industries for Sustainable Development and its flagship initiative,Harnessing Critical Energy Transition Minerals for Sustainable Development,to strengthen and consolidate existing efforts.The Panel released Resourcing the Energy Transition:Principles to Guide Critical Energy Transition Minerals Towards Equity and Justice in September 2024,proposing the following seven voluntary Guiding Principles:Principle 1:Human rights must be at the core of all mineral value chains.Principle 2:The integrity of the planet,its environment and biodiversity must be safeguarded.Principle 3:Justice and equity must underpin mineral value chains.Principle 4:Development must be fostered through benefit sharing,value addition and economic diversification.Principle 5:Investments,finance,and trade must be responsible and fair.Principle 6:Transparency,accountability and anti-corruption measures are necessary to ensure good governance.Principle 7:Multilateral and international cooperation must underpin global action and promote peace and security.A suite of other initiatives is summarised in Annex I-A.Contributed by The Biodiversity ConsultancyBiodiversity and responsible sourcing for wind and solar developments:An overview and action agenda7Table 1 Summary of key drivers for responsible sourcingDRIVERSUMMARYEXAMPLES*Regulatory and compliance-basedRegulatory and voluntary frameworks driving reporting and disclosure on company impacts,dependencies,risks,and opportunities across the whole value chain.These generally align with the Kunming-Montreal Global Biodiversity Framework(KMGBF).EU Corporate Sustainability Reporting Directive(CSRD)EU Corporate Sustainability Due Diligence Directive(CSDDD)Voluntary leading practiceTaskforce on Nature-related Financial Disclosure(TNFD)Science-Based Targets for Nature(SBTN)Global Reporting Initiative(GRI)PolicyRecognition of the risks of irresponsible and illegal mining,through policy,and the need to improve environmental practice alongside securing critical mineral supplies.EU Critical Raw Materials Act(CRM Act)UK Critical Minerals StrategyUS Department of Energy Critical Minerals Strategy Stakeholders and social license to operateResponding to increased scrutiny and pressure from stakeholders,especially regarding potentially hidden impacts of complex supply chains.Reducing the risks of stakeholder opposition to new projects,project disruptions,or financing challenges.Managing reputational risk.Multistakeholder initiatives including:Fair Cobalt AllianceInternational Responsible Business Conduct Agreement Beyond the Megawatt initiative from the Clean Energy Buyers InstituteSolar Stewardship Initiative ESG StandardEquitable Origen EO100OthersTransition risks:meeting future regulatory requirements,handling sourcing restrictions and ensuring continuity of supply,and navigating changing market conditions/consumer preferences.Systemic risks:large-scale disruption of supply chains due to changes/disruption to natural systems.*See also Annex I for links to websites of the examples cited.Source:Authors.2.2 Drivers of responsible sourcingResponsible sourcing has several legislative and social drivers,as well as a clear business case,for ensuring continuity of supply.Table1 summarises the key drivers.In terms of quantity and number of minerals required,offshore wind technology is the most mineral intensive technology per megawatt(MW)of energy generated followed by onshore wind and solar PV(IEA,2021).The following sections summarise the key minerals and metals required for wind and solar power,the demand for these(and other)minerals and metals,the associated supply risks,biodiversity impacts and mitigation measures,and sustainability challenges for renewable energy supply chains.8Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda3.1 Key minerals and metals 3.1.1 Wind power The various components of wind turbines,including towers,nacelles,blades,foundations,panels and cabling,require a range of minerals,which are summarised in Figure3(below).Steel is key,used in the towers,nacelle structure,and the drivetrain,accounting for about 80%of the total weight(Giurco etal.,2019).Wind power also requires zinc,3 used for protecting turbines from corrosion(IBRD/The World Bank,2020;IEA,2021).The proportions of other materials will depend on the design and whether they are sited onshore or offshore.Additionally,there are two main types of mechanical design determining materials required:3 More than 98%of zinc demand from energy technologies come from the wind industry(IBRD/The World Bank,2020).Geared:These account for more than 70%of the global onshore wind market(IEA,2021).Gearboxes convert low turbine rotation speeds into much higher speeds for generating electricity(at a ratio of around 1:100).This type of technology uses coil-driven generators that require significant amounts of copper.Direct-drive permanent magnet generators(PMG):These account for more than 60%of the offshore wind market worldwide because they are lighter,more efficient,and have lower maintenance costs(IEA,2021).They do not have a gearbox and instead use magnets containing rare earth elements(REE),such as neodymium-iron-boron(NdFeB),combined with additives usually dysprosium,but also praseodymium and terbium,and chromium.Key minerals and metals for wind and solar development3Figure 3 Overview of key metal requirements and supply chain for wind power Source:Adapted from Giurco etal.(2019,Figure 11.2,p.440).Neodymium(Rare earth metal)Dysprosium(Rare earth metal)Copper(Metal)Aluminium(Metal)Steel(Alloy of iron&carbon)Permanent magnets(Alloys)Permanent magnet generatorGearbox turbinesNacelleTowerBladesWind turbineConcrete(aggregate cement)Carbon fibre&fibreglassCompositeComponentFoundationEnd productMining&processingManufacturingEnd useMetalBiodiversity and responsible sourcing for wind and solar developments:An overview and action agenda9The increasing size of turbines is an important contributor to the increase in capacity factor(due to taller towers,larger rotors and lighter drivetrains),which in turn has helped to reduce material intensity for some materials in wind power(IEA,2021).Turbine foundations(for onshore wind,fixed offshore wind power,and gravity base anchors for floating wind)also require substantial amounts of concrete,using cement,sand,and gravel,as well as large amounts of freshwater during the construction process.Turbine blades are made up of a composite of fibreglass(or carbon fibre),resins,balsa wood,and adhesives(IBRD/The World Bank,2020).3.1.2 Solar powerSolar photovoltaics(PV)are designed to enable the conversion of sunlight to electricity as efficiently as possible via the photovoltaic effect.There are three main types of design for solar PV with variable mineral content,as summarised in Figure4(below).Most commercially available solar PV cells are crystalline silicon(C-Si)either monocrystalline silicon solar cells or polycrystalline silicon solar cells.A typical C-Si PV panel contains about 76%glass(Giurco etal.,2019),about 8%aluminium(frame),5%silicon(solar cells),1%copper(interconnectors),and less than 0.1%silver(contact lines)and other metals(steel,lead,and nickel)(Giurco etal.,2019;IEA,2021).Other materials include ethylene vinyl acetate(EVA)and fluorinated polymers(used for encapsulation and backing)(Giurco etal.,2019).Thin-film solar cells require more glass but less material overall than crystalline silicon(Giurco etal.,2019;IEA,2021).They include cadmium telluride(CdTe)panels and copper indium gallium diselenide(CIGS)panels.They are also predominantly glass,with amorphous thin-film silicon(a-Si,TF-Si),copper,zinc,indium,and gallium(Giurco etal.,2019).Figure 4 Overview of key metal requirements and supply chain for solar PV Source:Adapted from Giurco etal.(2019,Figure 11.1,p.439).10Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda3.2 Demand and supply risksRenewable energy production is material intensive(IEA,2021).A renewable energy transition in line with any predicted climate scenario will substantially raise demand for certain minerals,depending on the clean energy technology type(IBRD/The World Bank,2020).Clean energy technologies4 are set to emerge as a major force in driving demand growth for critical minerals(IEA,2021).A recent study by Wang etal.(2023)found that the magnitude of material needs for future power generation scales directly with wind and solar deployment.COP28 resulted in a pledge to triple the worlds renewable energy capacity by 2030,and the IEA predicts mineral demand from low-carbon power generation will double or almost triple over the period from now to 2040,depending on the modelled climate scenario(IEA,2021).This is driven by wind power due to a combination of large-scale capacity additions and higher mineral intensity,followed by solar PV because of the scale of capacity additions among the low-carbon power technologies(IEA,2021).It is clear then that the scale and intensity of the predicted increase in demand should be sufficient to catalyse action,which will necessarily initially involve developing a better understanding of supply chains and supply chain actors(Section4).It is less straightforward to determine broadly whether the wind and solar sectors might have more influence or less influence for specific minerals and metals compared to other sectors where there is demand.For some minerals,like lithium,the energy transition is already the major driver of global demand electric vehicles and battery storage count for around half of the mineral demand from clean energy technologies over the next two decades(IEA,2021).Figure5 shows projected annual mineral and metal demand in 2050 from solar,wind,hydropower,geothermal,nuclear,battery technologies,and conventional electricity generation from coal and gas,as modelled 4 Clean energy technologies are:solar PV,wind,hydro,concentrated solar power(CSP),bioenergy,geothermal,nuclear,electricity networks,electric vehicles and battery storage,and hydrogen as modelled in IEA(2021).5 See Table 1.1 in IBRD/World Bank(2020).6 For more information,please see:Fortune Business Insightsby IBRD and The World Bank(2020)under a 2C warming scenario.5 The minerals with the projected highest percentage increase in demand between 2018 and 2050,as shown in Figure5,are graphite and lithium,linked only to energy storage in lithium-ion batteries.Since these two materials are not used in other energy technologies,their overall demand cannot be compared to other technologies(IBRD/The World Bank,2020).When focusing on electricity generation technologies(and not including battery mineral demand),iron and aluminium show the highest absolute increases,followed by copper and zinc(IBRD/The World Bank,2020).Figure6 shows the cumulative requirement for minerals and metals through to 2050 for wind and solar electricity generation under different climate and demand scenarios.Annex II provides a list of summary factsheets for seven of the most in-demand minerals and metals across wind and solar.For metals like iron,renewable energy is only part of global consumption.Almost all iron ore is used in steelmaking(National Minerals Information Center,n.d.a),and most steel is used in the building and infrastructure sector which,alongside energy(electricity and gas transmission networks),also includes transport,telecommunications networks,and water supply and distribution networks.Other minerals and metals are closely associated with these,like zinc and chromium,which are mostly used to galvanise and harden steel and iron,preventing corrosion.Aluminium is the single most widely used material in solar power applications(e.g.in solar frames,wires,support structures)(European Aluminium,n.d.),accounting for more than 85%of most solar PV components(IBRD/The World Bank,2020).However,the transportation sector had the largest share of the aluminium market in 2023.6 The French Committee of the IUCN(Comit franais de lUICN)has published a factsheet on aluminium,as part of a study on the upstream value chain of companies,to identify their impacts Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda11Figure 5 Projected annual mineral and metal demand under a 2C warming scenario from energy technologies in 2050,compared to 2018 production levels Source:Adapted from IBRD/The World Bank(2020,Figure 4.3,p.73).*For more information on climate scenarios:IRENA REmap and Ref cases(IRENA,2019);IEA 2DS(2C scenario),IEA B2DS(beyond 2C scenario),and IEA RTS(reference technology scenario)(IEA,2017);Base scenario is defined as“the state of affairs where there is marginal progress toward a low-carbon transition”(IBRD/The World Bank,2020).Figure 6 Cumulative requirement for minerals and metals through to 2050 for wind(left,in blue)and solar(right,in red)under different climate and demand scenarios*Source:Adapted from IBRD/The World Bank(2020,Figure 3.2,p.40 and Figure 3.9,p.47).0123456AluminumZincLithiumChromium0P00 0%000500E0P0%LithiumIndiumAluminumZincChromiumIronPercentagea)Projected 2050 annual demand from energy technologies,as percentage of 2018 productionb)Projected annual demand from energy technologies in 2050Million tonnes050100150250200IEARTSIRENAIEA2DSIEAB2DSIRENAAluminumIndiumZincMillion tonnes050100150200250300350400450500IEARTSIRENAIEA2DSIEAB2DSIRENAIronZincAluminumChromiumMillion tonnes12Biodiversity and responsible sourcing for wind and solar developments:An overview and action agendaand dependencies on biodiversity and ecosystem services(UICN,2024).7 Copper is key to the energy transition.It is the best conductor of electricity after silver(EuRIC,n.d.).The National Minerals Information Center of U.S.Geological Survey(USGS)estimates that about three quarters of total copper use is for electrical purposes,including power transmission and generation(National Minerals Information Center,n.d.b).8 Demand for copper is predicted to increase by 56%on 2018 levels due to wind and solar energy(ICA 2019).Mnberger and Stenqvist(2018)estimate the societal stock of wind power and solar PV technologies could increase 1,000%and 3,000%,respectively,between 2015 and 2060(based on various climate mitigation scenarios).For most materials,clean energy technologies are expected to become the fastest growing segment of demand,with total share of demand approaching 40%for copper and rare earth elements,6070%for nickel and cobalt(and almost 90%for lithium)(IEA,2021).Even where projections are lower,demand could still result in enormous increases in absolute production globally(Sovacool etal.,2020).However,uncertainty in demand projections varies among these commodities,for example depending on the renewable energy technology mix ultimately utilised,and whether minerals are required for many energy technologies or for only a few(e.g.copper is required for all types of clean and conventional energy generation and for battery storage,while indium is only required for solar PV and nuclear power(IBRD/The World Bank,2020).Notwithstanding which sector or activity drives demand for a mineral or metal,some are already considered endangered meaning they face critical supply risks and limitations.Of the 188 elements that make up everything,supply limitations are anticipated for 44 of these elements in the coming years,9 including nine for which there is a serious threat in the next 100 years,among which are silver,zinc,and indium.For endangered 7 Three strategic raw materials were selected for the first phase of the French Committees work aluminium,lumber and industrial timber,and steel.Aluminium is the first factsheet to be published.8 The requirement for copper is expected to increase yet further,with the need to upgrade aging infrastructure and power data centres with renewable energy(Bloomberg Intelligence,2024),which is linked to the build out of data centres as artificial intelligence(AI)demands increase,9 For further information,please see:https:/www.acs.org/green-chemistry-sustainability/research-innovation/endangered-elements.htmland critical elements especially,responsible management of their extraction,use and reuse is essential.These might be included on national critical minerals lists,denoting vulnerabilities in their long-term supply(Ali etal.,2017),particularly in meeting accelerated(rather than gradual)demand trajectories.Some of these risks include:Higher geographical concentration of production(e.g.cobalt is mostly extracted in the Democratic Republic of the Congo,whereas rare earth elements are mostly sourced from China(IEA,2022,p.121);A mismatch between the pace of change in demand and typical project development timelines(e.g.the very long lead time from discovery to production for nickel,which is 15 years in some places(IEA,2022,p.122);The effects of declining resource quality(e.g.copper;Rtzer&Schmidt,2020);The growing costs of poor environmental and social performance(Lawley etal.,2024;Lbre etal.,2020;Valenta etal.,2019);Higher exposure of mine sites to climate risks such as water stress(Northey etal.,2017)(e.g.half of global copper and lithium production currently occurs in areas of high water stress;IEA,2022,p.128).3.3 Mining impacts on biodiversity The building and operation of mines and mineral processing facilities creates significant pressure on species and ecosystems(Sonter etal.,2018),and these are not less so for energy transition minerals(Sonter etal.,2022).For example,8%of all vertebrate species are listed by the IUCN Red List as threatened by mining(Lamb etal.,2024),and 42 threatened mammal species have Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda13more than 30%of habitat within 10 km of an operational mine(Sonter etal.,2022).Further,considerable metal production occurs within species-rich biomes and ecosystems under water stress(Luckeneder etal.,2021),and 30%of the worlds permanent waste storage facilities are built either within or nearby areas protected for their biodiversity value(Aska etal.,2024).Establishing mining-related infrastructure can also cause biodiversity loss through habitat removal and landscape fragmentation(Siqueira-Gay etal.,2022).Mine operation can also degrade ecosystem condition and function through noise,dust,and light pollution(Cross etal.,2021),introduction of invasive species(Cristescu etal.,2012),and by causing declines in water quality and quantity(Lakshman,2024).Biodiversity losses can occur at the site level,and also permeate indirectly for tens of kilometres from mine site boundaries,because of the tendency for mines to enable further development(Giljum etal.,2022;Sonter etal.,2017)and provide access enabling other pressures such as bushmeat hunting(Edwards etal.,2014).In the same manner,biodiversity losses can affect ecosystem services and risk human rights(Bebbington etal.,2018;Tost etal.,2020).Meeting the growing demand for energy transition minerals without adequate mitigation of biodiversity losses will cause significant biodiversity loss(Sonter etal.,2023).Following current trajectories,biodiversity loss per tonne of mined material in the future will likely increase.For example,declining ore grades will lead to larger mine pits and more habitat loss,more waste material,and a greater risk of pollution(Owen etal.,2024),and minerals being increasingly sourced from ecologically vulnerable areas(Luckeneder etal.,2021),with less stringent environmental regulation(Watari etal.,2021).However,the amount and location of these biodiversity losses will depend on which minerals are mined from where(Cabernard&Pfister,2022)and the implementation and outcomes of mitigation actions taken by mining operations(Sonter etal.,2023),which are dependent on regulatory requirements,voluntary efforts by the mining sector,and pressure from consumers.Figure7 shows proportion of global mining area for different materials per country,and related biodiversity loss.Rising demand,combined with depleting terrestrial deposits,also mean that obtaining energy transition minerals via deep sea mining may begin soon(Box4).Beyond the extraction site,the processing,transport,and manufacturing of minerals can have significant impacts on biodiversity as well,arising from pressures,including(but not limited to)land use change to accommodate new and expanding facilities,emissions,water use,and water and soil pollution.Energy consumption and GHG emissions are a major impact of mineral processing.The environmental impacts of most metals are dominated by the purification(i.e.smelting)and refining stages,due to the energy-intensive melting stages,which often use fossil-fuel either directly or indirectly(Nuss&Eckelman,2014).About half of global power plants owned by metal and mining companies burn coal(Schenker etal.,2022).In 2007,iron and steel production accounted for 30%of global industrial CO2 emissions.GHG emissions and energy consumption are also issues during distribution of minerals and manufacturing of components for wind and solar technologies.Mineral processing operations all consume substantial amounts of water,and many processing facilities are located in areas already under water stress(e.g.iron production in Australia)(Norgate&Lovel,2004).Mineral processing,such as smelting,can also lead to metals polluting water and causing ecotoxicity.Heavy metals like lead,cadmium,and chromium can be toxic to organisms even at low concentrations and have been linked to reduced growth of phytoplankton and zooplankton.These toxic metals can also enter the air in the form of metal fumes or suspended particulates.They can be biomagnified through food chains and can have a destructive impact on terrestrial,freshwater and marine species(Izah&Ogwu,2023;Raj&Das,2023).Other environmental pollutants released during processing include arsenic emissions and sulphuric acid from copper processing,and red mud resulting from the production of aluminium from bauxite(Schenker etal.,2022).Country-specific legislation and policy around sustainability and responsible business practices are also variable and influential.14Biodiversity and responsible sourcing for wind and solar developments:An overview and action agendaFigure 7 Global mining area and related biodiversity loss Source:Adapted from Cabernard&Pfister(2022,Figure 2,p.8).Box 4Deep-sea mining of critical metals and mineralsThe deep sea(below 200 m in depth)contains large quantities of minerals and metals needed to support an energy transition(Teske etal.,2016).These include potato-sized polymetallic nodules(comprising copper,nickel,cobalt,iron,manganese,and rare earth elements)on the seabed surface of abyssal plains(4,0006,000 m),sulphide deposits within hydrothermal vents(2004,000 m depth),and cobalt crusts located on seamounts(7007,000 m)(UNECE,2024).While these resources are not yet being extracted commercially,there is growing and significant interest in mining polymetallic nodules in the Pacific Oceans Clarion-Clipperton Zone(CCZ).Exploration licences have been granted to 16 deep-sea mining contractors across one million km2 of the CCZ,and the International Seabed Authority(ISA).*However,despite economic potential,many social and environmental challenges remain with respect to deep sea mining(Levin etal.,2020).Stakeholders are particularly concerned about potential risks to marine ecosystems,a lack of governance of costs and benefits of deep-sea mining,and how risks and impacts compare to alternative terrestrial sources of these minerals.In 2020,the IUCN supported a moratorium on deep sea mining in international waters,and highlighted the need for rigorous impact assessments,alignment with the precautionary principle,and clear mechanisms to mitigate environmental impacts(IUCN Members Assembly,2020)all of which would contribute towards responsible sourcing approach.*ISA,the regulator of extractive activities in international waters,is currently drafting rules and regulations to enable this industry Contributed by The Biodiversity ConsultancyBiodiversity and responsible sourcing for wind and solar developments:An overview and action agenda153.4 Mitigating biodiversity impacts of mineral and metal supply The implementation of the mitigation hierarchy is central to mitigating impacts of mining and mineral processing-to first avoid,then minimise,restore and finally offset impacts to achieve at least NNL of biodiversity(Glossary).Guidance,tools,and technical support exist to facilitate implementation of mitigation hierarchy good international industry practices(GIIP)in the mining sector and more broadly(for example:CSBI,2015;ICMM,2006;IFC,2012b&2019).Impact avoidance is the primary focus,primarily via site selection(e.g.no-go commitments with respect to World Heritage Areas),project design(e.g.selecting lower impact infrastructure options)and scheduling(e.g.avoiding operations during sensitive periods for biodiversity).Impact minimisation involves use of physical controls(e.g.fencing to reduce wildlife mortality),operational controls(e.g.discharging only during certain times of year)and abatement controls(e.g.using dust control to reduce impacts on nearby habitat).Restoration is then used to repair degradation and damage to biodiversity post-mining and should include progressive approaches where possible to reduce lag times between losses and gains(Young etal.,2022).Finally,offsets are used as a measure of last resort to mitigate residual losses through securing and increasing the extent and condition of biodiversity elsewhere(Bull etal.,2013).Numerous regulatory,financial and voluntary initiatives support mining sector application of the mitigation hierarchy and an ambition for the mining sector to achieve NNL of biodiversity(Annex I-A).More than 100 countries have,or are developing,legal requirements to mitigate biodiversity impacts,including 37 countries in which demonstrating potential for NNL is a prerequisite for project permitting(GIBOP,2019).While the majority of offset implementation is driven by a regulatory requirement(Bull&Strange,2018),when these do not exist,financial safeguards,such as IFC Performance Standard 6(IFC,2012b),often drive implementation and can result in much larger and 10 This is exacerbated by government failures to internalise externalities fully,through fiscal measures,standards,regulations and market mechanisms(Dasgupta,2021,p.467).transparent mitigation.More recently,businesses are increasingly making voluntary commitments to apply the mitigation hierarchy,although the specifics of these commitments and how they are implemented varies widely(Rainey etal.,2014;zuErmgassen etal.,2022).Voluntary commitments include those of relevant industry membership groups(e.g.ICMM and the Initiative for Responsible Mining Assurance(IRMA);see Annex I-A),corporate interest in alignment with emerging risk reporting and disclosure frameworks(e.g.GRI,2024;SBTN,2020;TNFD,2023),and requirements for certification,including schemes that certify mines(e.g.IRMA,2024)and commodities(e.g.the Copper Mark,or CM,and the Aluminium Stewardship Initiative,ASI;see Annex I-A)at various locations along the value chain.Despite all these,there remains limited evidence that mining sector actions add up to achieve NNL of biodiversity(zu Ermgassen etal.,2019),beyond several well-cited case studies(e.g.Devenish etal.,2022).There are reasons for this,including confusion around key concepts(Maron etal.,2018),poor design in offset policy,failure to recognise limits to achieving NNL outcomes(Simmonds etal.,2022;Sonter etal.,2020b),underestimation of project costs,and a failure to monitor outcomes and adapt to changing conditions throughout and beyond the mining project life.Companies still commonly fail to internalise the cost of addressing biodiversity impacts as a core cost of doing business.10 Additionally,another emerging risk relates to the broadening scale and ambition of biodiversity commitments towards the concept of a nature positive contribution(Box1)(e.g.ICMM,2024b)and the potential for these efforts to dilute the basic principles of strict adherence to applying the mitigation hierarchy and achieving NNL(Maron etal.,2024).Hence,implementation of the basic first principles of mitigation by mining companies at mine sites(CSBI,2015)mitigating impacts of direct operations before allocating effort to broader commitments is fundamental to responsible sourcing of minerals and metals.16Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda4.1 Overview The scale of the responsible sourcing challenge is vast and complex with numerous challenges to navigate(Section4.2).There are,consequently,limits to what can be achieved by individual developers to address biodiversity impacts linked to supply chains.Collaborative action and innovation and social signalling are essential within the renewable energy sector,between the renewables sector and other sectors with similar challenges and opportunities,and between renewable energy developers and organisations throughout their supply chains.This section outlines some of the ways in which wind and solar developers can approach initial action on responsible sourcing and biodiversity,and their role in driving responsible sourcing in line with the mitigation hierarchy(Section3.4).This includes mapping supply chains as far as possible to identify and collate the information available to the developer(and highlight key data gaps),which will in turn inform prioritised initial actions including:adopting high-quality voluntary environmental standards;improving circularity and recovery of materials from operations;sourcing from suppliers who use sustainability-certified inputs(under existing schemes);establishing effective collaborations across and between industries and key suppliers to share information and experience;and working with industry partners and suppliers to exert positive influence and improve practices.Such actions will develop the foundation for meaningful action on responsible sourcing and biodiversity still it is recognised that there is a long way to go.Seeding and setting expectations for good practices for biodiversity all the way through supply chains is a first step towards halting and reversing biodiversity loss,and ultimately transforming the way business is conducted to contribute to the societal nature positive goal.4.2 Sustainability challenges in renewables supply chains Responsible sourcing has multiple challenges and involves a wide array of different actors.Key sustainability challenges are highlighted in this section,providing some indication of the complexity and scale of the issues wind and solar developers must consider,and which will inform initial action.Challenges outlined here are:The developers sphere of influence;Geographical separation and concentration at key stages of the supply chain and geopolitics;Minerals and metals are considered;undifferentiated goods;The large number of existing standards and certification schemes;The scale of renewables supply chains.Sphere of influence:For developers,assessing and acting on biodiversity issues in supply chains is more complex than for direct operations.This is generally because developers have complete operational and/or financial control as well as reliable,spatially explicit data for their direct operations.Beyond these,developers have varying degrees of understanding,influence,and ability to affect practices and outcomes,which have implications for setting corporate and project-level targets for biodiversity(for example,in line with Science Based Targets for Nature,or SBTN)(Box5).Initial action on responsible sourcing and biodiversity for wind and solar developers 4Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda17Box 5Spheres of company influence and biodiversity target settingIUCN defines the corporate scope of biodiversity influence as“activities such as operations,processes and services managed by the company,all the supply chains and the services feedback and supporting the companys activities”(Stephenson&Carbone,2021,p.ix).The strength of this influence varies across the corporate scope.Science Based Targets Network(2020,p.18)offers another definition of spheres of company influence,as follows and represented in Figure 8(below):Value chain:The series of activities,sites,and entities starting with raw materials and extending through to end-of-life management.Upstream:All the activities associated with suppliers,as well as transportation of commodities to manufacturing sites.Downstream:All the activities linked to the sale of products and services produced by the company,including use and reuse of products and their end of life(recovery,recycling,and final disposal).Value chain-adjacent areas:The landscapes,seascapes,and watersheds geographically adjacent to value chain sites.To adequately address impacts and dependencies on biodiversity and nature,it is necessary to act at these scales,as relevant.Systems:The broadest extent of corporate influence on socio-economic and socio-ecological systems.It will be necessary to act at this scale to bring about the transformative change in the relationship between business and nature required to achieve the goals of the Kunming-Montreal Global Biodiversity Framework(Box 1).Where companies have subnational(or finer)spatial resolution data for activities in their direct operations and the upstream value chain,detailed guidance is available for setting precise science-based targets for nature(SBTN,2023b).However,where the available data are national or less granular,companies are directed to improve traceability and transparency to enable science-based target setting(SBTN,2024).Contributed by The Biodiversity ConsultancyVALUE CHAI NSPHEREOFCONTRO LSPHERESOFINFLUENCEVALUE CHAIN-SYSTEMSDIRECTOPERATIONSUPSTREAMDOWNSTREAMJACENT AREASADFigure 8 Spheres of control and influence relevant for companies acting on biodiversity Source:SBTN(2020,Figure 6,pp.1819).18Biodiversity and responsible sourcing for wind and solar developments:An overview and action agendaGeographic separation and concentration,and geopolitics:There is geographical separation of the metal reserves,extraction facilities and processing plants(Schneich etal.,2023),component manufacturing facilities,and end-use locations of wind and solar project sites.There is also geographic concentration at key stages of the supply chain,with a select group of countries playing a dominant role in mining and processing(e.g.Chile for copper,and China for rare earth metals)(IRENA,2023).The mining industry is dominated by a few major companies with the resources and skills needed to develop complex mines,operating across multiple countries,and thereby controlling a significant proportion of global production and trade(IRENA,2023).In particular,supply chains for solar PV(and battery manufacturing)are highly concentrated geographically at several stages,which could lead to frictions for supply(ETC,2023a).Extraction and processing of some minerals,and manufacturing of some components,are also currently concentrated in countries with limited regulatory focus or investor pressure on sustainability(e.g.solar panels and solar panel components in China11(USDE,2022;ETC,2023a).Reducing reliance on individual countries for component parts,diversifying the supply chain and investing in renewable energy manufacturing could increase energy independence for many countries.Each critical material has a unique geography of trade,varying across countries,sectors,and technologies,and making countries interdependent in terms of mineral and metal supply and demand(IRENA 2023).Disruptions and volatility in the supply of critical minerals have created instability in the global economy(Dou etal.,2023).However,in the medium to long term,trade flows for critical materials are thought unlikely to be as susceptible to geopolitical influence as oil and gas because of the abundance and geographic spread of minerals and metals,and processing locations(IRENA,2023).Undifferentiated goods:Another major challenge in all mineral and metal supply chains is that these materials are undifferentiated goods,12 with inputs 11 China has the dominant global share of manufacturing capacity for several key solar panel components including polysilicon(72%),ingots(98%),wafers(97%),cells(81%),modules(77%),and inverters(66%)(Basore&Feldman,2022)12 Undifferentiated goods are products that are suitable for many different types of consumers.collected from numerous sources by traders and mixed at smelters or refineries.This often makes it extremely hard to trace the raw material back to individual mines.For metals like copper and gold,unformalised small-scale and artisanal mining,as well as illicit material flows,hinder traceability,and present challenges for certification and due diligence(Laing&Pinto,2023).In these cases,cooperation between governments,corporates,and certification schemes to ensure sustainability and human rights is particularly necessary.The Fairmined Standard for Gold and Associated Precious Metals(ARM,2014)and the more accessible Code of Risk Management for ASM engaging in Formal Trade(CRAFT)(ARM,2020)are standards for good practice in artisanal mining,which include requirements around biodiversity that aim to improve incomes for artisanal mining based on a continual improvement model.However,few artisanal-scale mines are able to meet these standards,and the continuous improvement model mean that biodiversity impact management is not necessarily guaranteed at any given point in time through its implementation.Number of existing standards and certification schemes:There is an overwhelming number of initiatives,industry associations,certification bodies,standards,and guidance related to responsible and sustainable sourcing of raw materials(Annex I for a summary).This can lead to frustration and overload for businesses especially for users of multiple minerals and metals.Further,not all minerals and metals needed for wind and solar development are included in schemes requiring good standards of practice.Ideally,existing standards will be expanded to be more inclusive and comprehensive,rather than be at risk of compounding the issue with the creation of new responsible sourcing or material standards.Renewable energy companies could use their collective leverage to call for this(Section4.4.3).Developers will need to conduct due diligence to ensure they require only high-quality and auditable good practice standards and schemes from their suppliers.While an assessment of the credibility and efficacity of initiatives and other resources has not been conducted as part of this guidance,some organisations lead and influence Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda19good practice in the mining and metals industry(Annex I-A provides a few examples).Scale of renewables supply chains:The scale of supply chains for renewable energy companies operating across the world is vast13.Mineral and metal supply chains for wind and solar energy are complex and include numerous stages and actors between the mine,the final technology construction,and the end use(Figure9).Developers are not usually involved in the direct purchase of raw mineral and metal commodities instead procuring composite products(e.g.solar panels or wind turbines)from primary(or tier 1)suppliers(Figure10).This means that responsible sourcing for developers of wind and solar projects and transmission infrastructure is most likely to be related to leveraging their purchasing power to drive responsible sourcing practices throughout their upstream supply chains.However,various sustainability challenges exist linked to low traceability and the relatively low influence developers and their primary suppliers have over geographically restricted minerals and metals.Consequently,it is difficult for developers to demonstrate sufficient traceability to establish 13 For example,at the time of writing,companies,such as Iberdrola and Vestas,work with 20,000 with 12,000 suppliers,respectively.confidence in the original sourcing of the materials in their supply chain,the associated appropriate management of biodiversity impacts,and therefore set corporate or project-level sustainability goals and targets for supply chains in the same way as for direct operations.4.3 Responsible sourcing and the project cycleResponsible sourcing considerations are relevant and have implications throughout the project cycle,with opportunities to manage major one-off purchases made in the pre-construction and construction phases(for example,the wind turbines and solar panels),and ongoing maintenance and repeat purchases associated with the operational phase.Decisions taken during the pre-construction technical planning and design phase can influence supply chain-related biodiversity impacts and opportunities for mitigation throughout the project cycle.Impacts can be avoided and minimised by opting for component parts with lower requirements Figure 9 A simplified overview of key actors across mineral supply chains Source:Adapted from ETC(2023b,Exhibit 4.8,p.103).20Biodiversity and responsible sourcing for wind and solar developments:An overview and action agendaFigure 10 Example of simple supply chain tiers for a wind farm development Source:Authors(adapted from Moore(2024).for impactful minerals and metals,increasing the use of alternative,recycled and recyclable materials,minimising infrastructure material use,and re-using and recovering as much redundant material as possible(NatureScot/NdarAlba,2024).For example,up to 94%of the mass of a wind turbine is recyclable with improvements in recyclable blades increasing this still further(Woo&Whale,2022).14 Modular design of floating offshore wind farms could be used to enable serial production and assembly at ports before being towed into position and anchored with minimal use of additional materials like concrete and steel(Edwards etal.,2023).For solar farms,construction designs could aim to optimise mounting structures to use less steel15 without compromising stability.Such design and procurement decisions like these will also influence the opportunities for effectively managing waste throughout the project cycle(Figure11).As the wind and solar sectors mature,increasing opportunities available for managing and mitigating 14 For example,wooden and recycled turbine blades are being tested,to avoid the difficulties(e.g.see La Rosa,2023)and costs(e.g.see Gonalves etal.,2022)associated with recycling traditional wind turbine blades made from glass fibre reinforced polymer(GFRP).15 See,for example:https:/ For example,it is estimated that more than 50,000 wind turbines will be decommissioned by 2030.For more information,see:https:/ See,for example:https:/orsted- For example,rsted have piloted shredding GFRP blades from onshore wind farms for reuse in construction materials.biodiversity impacts linked to responsible sourcing,decommissioning and end of life are likely to emerge.16 Components designed with recyclability or refurbishment in mind should enable developers to reduce purchases of primary materials and instead retain and reinvest the value of existing materials into new projects or repowering existing projects.Opportunities to refurbish components can reduce material requirements,17 and for some materials it can be more environmentally efficient to modernise key components than to decommission and repower facilities(for example,steel,aluminium,copper,cast iron,and concrete associated with wind farm rotors and nacelles)which is consistent with the concept of a circular economy(Kasner,2022).Some materials may not have been designed for recyclability but there are still opportunities to reduce waste.18 Box6 summarises the importance of moving towards a circular economy to reduce overall resource demand and enable responsible sourcing and a sustainable renewable energy transition.Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda21Technical innovations19 and increased recycling have huge potential to reduce long-term demand for primary materials(ETC,2023a;2023b).There are also potential opportunities to source recycled materials from other sectors,such as electronic waste(e-waste)from electrical and electronic equipment which contains valuable materials that could be used in renewable energy technologies(Seif etal.,2024).As elements,most metals20 can theoretically be recycled indefinitely,provided their purity is maintained and there are systems are in place for recovering them.Among the most recyclable metals are(EuRIC,n.d.):Steel:70%of the steel produced to date is still in use.In Europe,more than 90%of end-of-life stainless steel is collected and recycled into new products and in 2017,35.5%of global crude steel was produced from secondary raw materials.Aluminium is also one of the most recycled materials in the world.Almost 75%of all the aluminium ever produced is still in use today.21 19 For example,design innovations in offshore wind include the use of geopolymer concrete,replacing steel rebar with basalt and reducing the weight requirements of monopiles through slip-forming.For more information,see:https:/ Except for radioactive metals such as uranium and plutonium.21 For more information,see:https:/international-aluminium.org/work_areas/recycling/Copper:In the EU,44%of copper comes from recycled sources and 70%of copper in end-of-life products are recycled.However,recycling rates vary greatly for all minerals and metals due to costs and technical issues(IBRD/The World Bank,2020).It will take time for large volumes of materials to reach end-of-life,hence the short to medium term potential for recycling to reduce demand is limited(ETC,2023b&2023a;Gielen 2021).Recycling is limited by a lack of basic recycling infrastructure and technology in many developing countries,new and complex applications of metals at mass production scales,and the undue loss of too much valuable metal due to imperfect collection of end-of-life products(UNEP,n.d.).4.4 Actions for developers While wind and solar developers generally lack direct operational or financial control over the sourcing of the primary minerals and metals in their upstream supply chains,there are several important actions developers can take to improve understanding of the issues,take direct action in their own sourcing and decommissioning,improve traceability,and influence good practices for biodiversity along their supply chains-most powerfully related to leveraging purchasing power and industry influence.These actions are:Mapping the supply chain using footprinting approaches;Identifying company commitments,targets,and opportunities to act in line with the mitigation hierarchy;Collaborating with industry partners and suppliers to exert a positive influence for transformative change;Implementing action plans to guide and monitor these actions.Most preferredLeastpreferredPreventionReductionRecyclingRecoveryStorageFigure 11 The waste management hierarchy Source:ICMM(2022,Figure 2,p.18).22Biodiversity and responsible sourcing for wind and solar developments:An overview and action agendaBox 6The importance of moving towards a circular economyCircular economy practices are one of the most important pillars for achieving emission reduction targets and accelerating the energy transition(IRENA,n.d.).Energy conservation and efficiency,including circular economy practices,is a key technological avenue towards the 1.5C scenario(IRENA,2022).There are various definitions for the circular economy concept.A study of 114 such definitions found the concept to be most frequently depicted as a combination of reduce,reuse,and recycle activities with the aim of economic prosperity,but generally without including a waste hierarchy or highlighting that the circular economy necessitates a systemic shift(Kirchherr etal.,2017).As the concept gains traction,definitions are becoming more inclusive,bringing biodiversity and the need for transformative change to the fore.The Australian Circular Economy Hub acknowledges the primary aim of the circular economy is to redefine what is meant by growth,focusing on positive society-wide benefits rather than narrower and purely economic metrics(Taylor,2020).The Ellen MacArthur Foundation,devoted to creating a circular economy,defines it as a system where materials never become waste and nature is regenerated(Ellen MacArthur Foundation,n.d.).There are three primary principles driven by design:i)eliminate waste and production to reduce threats to biodiversity;ii)circulate products and materials(at their highest value)to leave room for biodiversity;and iii)regenerate nature to enable biodiversity to thrive(Ellen MacArthur Foundation,2021).A study of low-carbon technologies,including wind and solar energies identified three main strategies for circularity:reduction in demand;lifetime extension;and recycling(Simas etal.,2022).*The concurrent effect of these strategies can be to reduce annual mineral and metal demand,increase the lifetime of infrastructure and services(extracted minerals and metals stay in society for longer),and determine when and how much material can be recovered and re-enter the manufacturing process as a substitute for primary raw materials(Simas etal.,2022).The transformative change necessary to achieve the goals of the KMGBF(Box1)requires all three strategies because,for example,even if end-of-life recycling rates reached 100%(i.e.if all possible scrap was captured,recycled and could be reused),the use of recycled content is unlikely to reach 100%,unless there are significant reductions in the overall demand for raw minerals and metals(IBRD/The World Bank,2020).Approximately 40%of copper and 40%of steel are produced from recycled materials,and over 30%of aluminium,lead,and zinc production use recovered inputs,but export taxes remain high on all these materials(Korinek,2018).Trade restrictions on metallic waste and scrap are a particular challenge for the decoupling of industrial production from resource use,which is necessary to achieve the SDGs(CEPAL,2016;Korinek,2018).Transformative,systems-level change requires the involvement of all actors and stakeholders involved in the mineral and metals supply chain(Figures 9 and 10),and it takes time.Beyond the responsibility of developers to manage material recycling after decommissioning,there is a broader responsibility of mining companies to align with the basic principles of the mitigation hierarchy,providing an opportunity to develop circular metals-as-a-service business models and become resource managers.Concretely,it could mean going beyond simply mining primary materials to the provision of secondary recycled supply,providing tracing and monitoring capabilities throughout material life-cycles,or becoming effective managers of disused mining sites and waste(ETC,2023b).A survey of the readiness of three global wind turbine manufacturers(Tier 1 suppliers;Figure 10)for a transition to a circular economy showed that while they were more prepared than other non-renewable energy industries,major innovations are required in at least six areas:(i)implementation of a circular criteria and indicators in product design and public tender processes;(ii)ensuring components are tracked and monitored over their life cycle;(iii)implementation of efficient reverse logistics;(iv)exploration of alternative business model concepts;(v)improvement of recycling technologies for higher material quality outcomes;and(vi)development of circular wind hubs for information and data sharing(Mendoza&Pigosso,2023).For solar energy,reviews have shown that the industry is on a path towards increased circularity,but that priorities need to expand beyond recycling to a broader set of environmental policies and activities to fully realise the benefits of circular production(Heath etal.,2022;Schichtel etal.,2022).Whilst some policies are starting to encourage movement towards a circular economy,such as the European Commissions Circular Economy Action Plan,more ambitious frameworks for renewable energy are required:defining responsibilities,standardisation and certification;data collection and reporting systems;financial and fiscal policies;research,development and demonstration of recycling technologies;and public awareness-raising(IRENA,2022).*See also a separate systematic review for offshore wind developing a framework to embed a circular economy throughout the lifecycle of offshore wind energy infrastructure,resulting in 18 strategies,in Circular Wind Hub(2024)and Velenturf(2021).Contributed by The Biodiversity ConsultancyBiodiversity and responsible sourcing for wind and solar developments:An overview and action agenda23The following sections address each of these key actions.4.4.1 Map supply chain Mapping the supply chain is a powerful first step towards improving developers understanding of their supply chains,including identifying key issues,the nature of the associated biodiversity impacts,the scale and importance of specific minerals and metals in the supply chain,the available data and the major data gaps,and where there are opportunities to apply the mitigation hierarchy.Frameworks,such as the Taskforce for Nature-related Financial Disclosures Locate,Evaluate,Assess,Prioritise approach(TNFD,2023b),for which guidance on value chains is also available(TNFD,2024),provide a useful structure that companies may already have implemented for their direct operations.Mapping the supply chain can be achieved using two main approaches:The collection of any primary data available to the developer,including details of key suppliers and potential suppliers of suppliers(Figure10 for an indication of the possible number of tiers in the supply chain).Developers who have already undertaken a carbon footprinting process are likely to have already collated much of the relevant data.It might also be possible to begin to identify mining companies and suppliers who have committed to contributing to a nature positive future(Box1).This review of suppliers can also include an analysis of whether suppliers already align with existing standards of good practice(Annex I-B).Supply chain footprinting to identify priority minerals and metals in the wind or solar supply chain that require most urgent action.This will be informed,at least in part,by the primary supply chain data collated.A key tool for supply chain footprinting is the Life Cycle Assessment(LCA),a standardised method for assessing the environmental footprint of a product,process,service,or corporation from cradle to grave,which can be done with both primary and secondary data(Box7).Biodiversity extent x condition frameworks for estimating the state of biodiversity in an ecosystem can also be used for supply chain footprinting(Box7).Footprinting approaches are likely to be one of the most accessible ways developers can begin to establish a better view of their supply chains and associated biodiversity impacts,because they can be carried out with different levels of data availability and resolution.Mapping and footprinting the supply chain helps developers to scope targets for responsible sourcing and prioritise minerals and metals that require further investigation and action most urgently.For example,depending on the information available,mapping can help identify:Minerals and metals used in largest quantities;Minerals and metals(and sourcing locations)with comparatively high impacts on biodiversity(noting that this may not equate to the materials used in the largest quantities),such as copper which is shown to have disproportionately large pressures on biodiversity,according to one non-dimensional index based on data on land cover,protected areas,and mining operations(Kobayashi etal.,2014);Parts of the sourcing,processing,and production processes with comparatively high impacts and dependencies on biodiversity;The range of suppliers and partners,and understand their procurement practices and level of commitment to responsible sourcing and traceability;Major data gaps in supply chain knowledge and at what tier(helping to prioritise where to focus efforts to collaborate and improve data availability and awareness).Further investigation could include biodiversity risk screening of sourcing locations for priority minerals and metals,for example,assessing species extinction risk using the IUCN Species Threat Abatement and Restoration(STAR)metric.24Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda4.4.2 Identify company commitments,targets,and mitigation opportunities Developers may already have established biodiversity strategies and made commitments setting out overarching ambitions for biodiversity.22 These may include supply chains or their need to be revised to incorporate robust and clear commitments scoped to include them.Where appropriate for the business,these may be linked to specific high-quality voluntary environmental standards.Commitments associated with responsible sourcing should include broad no regrets actions,such as:No Go commitments,avoiding sourcing minerals and metals extracted at mines within protected areas and at-risk ecosystems.One of the means to implement this is through adopting a supplier code of conduct and ensuring independent audit of suppliers.23 Zero conversion and zero deforestation commitments,reducing land conversion for mineral and metal extraction,again through an independently audited supplier code of conduct.Given the complexity of wind and solar supply chains(Section4.2),overarching goals for responsible sourcing are initially likely to be qualitative(or semi-quantitative),informed by the outcome of supply chain mapping and footprinting.Goals could include commitments to:Avoid and reduce biodiversity impacts in wind and solar upstream supply chains through:Changing direct business operations within the company sphere of control(Box5);Improving in house circularity and sustainability(Section4.3 and Box6);Optimising longevity of components and parts and championing reuse.Influence as far as possible the actions and decisions of suppliers within the upstream supply chain,primarily through biodiversity-sensitive sourcing and supplier engagement 22 Strategies and commitments of developers may,or may not,be public.23 Voluntary no-go commitments can also send a strong signal to legislators to pursue supply chain legislation that prevents the import of products associated with conversion of important habitat,such as in the European Unions deforestation legislation.(Section4.4.3),and identification of the most appropriate and credible initiatives and certification schemes etc.(Annex I-A).Along with public-facing biodiversity strategies and commitments,these are social signalling actions that publicly express a companys opinions and position on biodiversity loss and contribute to spreading norms and practices aligned with societal goals for nature(Booth etal.,2024).Making proportional contributions to restoring and regenerating biodiversity in landscapes impacted by wind and solar supply chains by investing in conservation initiatives in countries where the company operates and where raw minerals and metals are sourced from.Contributing to transformative change by investing in research,development,and innovation to drive advances in technology and practices that can accelerate the transition towards a circular economy and achieving global goals for biodiversity(Box1).Table 2 summarises key opportunities for action on responsible sourcing,which address biodiversity impacts in line with the mitigation and waste management hierarchies.4.4.3 Engage collaboratively for transformative changeAchieving transformative change throughout supply chains requires engagement and collaboration across the board,from all actors at all tiers of the supply chain,as well as indirect stakeholders such as local communities and indigenous peoples in sourcing landscapes.Collective and collaborative action can influence the individual behaviours of many other companies up and down the supply chains(Booth etal.,2024).For wind and solar developers,supplier engagement will be key to improving traceability and driving responsible sourcing practice,especially because suppliers are likely to be facing similar challenges,drivers,and incentives for doing the same(Sections 2.2 and 4.2).Biodiversity and responsible sourcing for wind and solar developments:An overview and action agenda25Box 7Key tools for supply chain footprintingFootprinting approaches are essential for businesses to understand their interactions with and impacts on nature across the value chain,and to align with a suite of reporting frameworks,including the Taskforce for Nature-related Financial Disclosures,SBTN,and the European Unions Corporate Sustainability Reporting Directive.These frameworks enable companies to set targets and identify key actions that can contribute to achieving global biodiversity goals(Box1).Two key tools for footprinting are Life Cycle Assessment(LCA),and the biodiversity extent,condition,and significance(BECS)approach.Life cycle assessmentLCA is an assessment of the total environmental impact of a product(or service)throughout its entire life,based on the resources and energy inputs required and the emissions produced from production to end of life.It is carried out using either specialist modelling software which can be purchased(e.g.SimaPro or GaBi)or open source(e.g.OpenLCA or Brightway).Both paid-for and open-source options require the use of an LCA database which may need to be purchased separately.The most commonly used databases include EcoInvent,Sphera,and EXIOBASE.These databases,built with primary or secondary data,are becoming more comprehensive as organisations increasingly produce and share data.Primary data is specific to the company(e.g.quantity of a specific emission,volume,and source of a mineral withdrawal).Secondary or proxy data(e.g.data modelled for similar activities,based on regional or global averages)can also be used for LCA,but results have a high level of uncertainty and may not reflect the specifics of a companys supply chain.LCA can also be carried out using procurement data in spend or volume per sector of activity and country in place of primary or secondary data.LCA measures impacts on ecosystems using methods,such as ReCiPe,LC-Impact,Impact World or Environmental Footprint,which are most commonly applied through LCA software,but can also be used independently.Multiple impacts can be assessed at the same time,enabling exploration and comparison of different scenarios and trade-offs or synergies between different 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