Third level: the green investment loop

We have now established two levels of knowledge.

First level.

Europe´s organic waste in cities (sewage, kitchen waste, food industry) and agriculture (manure, plant residues) can be recycled. 

This recyling results in a storable, non-fossil/renewable energy, bio-methane.

Biomethane can be distributed and stored using the existing gas grid and fuelling stations built for fossil methane, "natural gas". All thing that are now using natural gas can replace this with biomethane. Cars, buses, trucks and ships. Switching to bio-methane makes them them climate neutral. 

Second level. By recycling the waste, green house gas emissions from the decomposition of organic waste in landfills, on farms, etc. are reduced radically since it is collected instead of escaping fugitively into the atmosphere.

When used to fuel cars, buses or trucks, the net climate effect of this system can exceed 100%. 

Conclusion: the sooner a widespread application of smart recycling of Europe´s organic waste, both urban and rural, the sooner we can cut green house gas emissions from a wide variety of sectors like agriculture, other parts of the food industry, waste water treatment, urban solid waste treatment and paper mills. And transport, both on land and at sea, since the recycling results in increased production of fossil free fuel.

 

The fastest growing biomethane market in the world is California. In six years, between 2011 and 2019, the share of biomethane at fueling stations increased from 10% to 77%.


Resulting in less emissions from farming financed by a truck fleet buying biomethane and cutting emissions from farming and transport (remember, Well To Whell perspective, second level knowledge) with more than 100%.

How can the EU copy that development, a development that cuts emissions and attracts investments in smart recycling? (=The intent of the EU Taxonomy concept)

That´s the third level. Putting one and two to work by massive implementation through investor interest.

Here is where the EU regulations on car emissions and The Clean Vehicle Directive decide everything. 

Without exception, all markets that have succesfully introduced biomethane know this: The only way to make clever, climate smart recycling of organic waste attractive to investors is to make the end product (= biomethane) profitable.

The third level of knowledge

 

The only market that can kick this green loop reducing emission sometimes with more than 100% into gear is:


the market for vehicle fuel. 
 

                    Cars are key

To get the investors into organic recycling (77% of one billion dollars invested in California biomethane production 2020 is private equity) you need the margins of vehicle fuel. The markets for electricity, heating or maritime fuel does not provide sufficient margins to attract investments. This has been proved by Germany, Belgium and also by the US, prior to 2011.

So yes, biomethane may in 2035 be a major source of green hydrogen or liquified fuel for ships. But long before that, a vast range of sectors in all EU member states will need to cut emissions.

And to make that 100+ % cut in emissions happen ASAP in as many EU member states as possible, the money/investments needed for the start-up faze of the production of this circular, Swiss Army Knife of sustainability biomethane is to be found in: cars. Cars, taxis, vans and trucks. 

That 100+ % cut in EU climate emssions is at stake this year.

If the regulators fail to keep up European production of methane powered cars, the window closes.