Uruguay signed, last week, a Memorandum of Understanding with the European Union (EU) in matters of Renewable Energy CooperationEnergy Efficiency and Green Hydrogen to meet the goal of carbon neutrality for 2050, within the framework of the summit between the Community of Latin American and Caribbean States (CELAC) and the European bloc.
Carbon neutrality emerges as an objective to be met from the Paris Agreement signed by more than 195 countries, in which Uruguay belongs since 2016. An objective that was proposed with greater seriousness from the European Green Deal created in 2019.
As regards Uruguay, the signing of the memorandum allows for the conclusion of negotiations with the European group for renewable energy. “The instrument will strengthen the progress achieved to consolidate Uruguay as a supplier of green hydrogen and the establishment of a common framework that will provide fluidity for this trade”, established the portfolio through their social networks.
On the other hand, it was remarked that this signing is a milestone “that represents an agreement for the carbon neutrality by 2050 and a big boost to the green hydrogen industry.”
How is neutrality achieved and how can Uruguay help?
Carbon neutrality consists of emitting the same amount of carbon dioxide as it is withdrawn from the atmosphere through different pathways, which would be a zero balance, or also called “Zero carbon footprint”.
For that, there are two possible ways: the first would be do not generate more carbon dioxide than the natural sinks that are the forests, oceans and soil. The other way to reach neutrality is the “carbon offset” which consists of balancing emissions by reducing them in other sectors.
For the latter, there are three options, the first being the EU emissions trading system which consists of the sale of carbon emission permits to companies. On the other hand, the border adjustment mechanism for carbon emissions to prevent European companies from seeking to establish themselves in other countries with more lax environmental laws. And finally, the promotion of use of renewable energy. It is at this point that Uruguay enters the scene with the green hydrogen.
Green hydrogen, a separate chapter
The country continues to make progress in the green hydrogen business, progress that was reflected in March with the signing of an agreement with a German company which coincides with the intentions embodied in the memorandum signed last week.
under the “Berlin Energy Transition Dialogue 2023” (BETD) that took place in the German capital, the Minister of Industry, Energy and Mining (MIEM), Omar Paganini, signed the agreement that incorporates Uruguay into a select group of countries with which Germany cooperates closely in energy matter. Among the advantages that the country could acquire is the possibility of exporting hydrogen to Europe.
Energy Partnership is an instrument of Federal Ministry for Economic Affairs and Climate Action for countries committed to the full energy transition, in order to create a global network to facilitate the exchange of intergovernmental energy policies and promote innovation in that area and economic cooperation. With this agreement, Uruguay will join Algeria, Brazil, Canada, Chile, China, Ethiopia, India, Japan, Jordan, Mexico, Morocco, South Africa, South Korea, Turkey, Tunisia, Ukraine and United Arab Emirates.
The signing of a joint declaration of intent established a general framework to promote the dialogue on energy policy and technical cooperation that today is reinforced with the signing at the Celac-EU summit. This will allow the development and improvement of sustainable infrastructures, as well as the creation of modern and efficient markets, in particular, through the promotion of a greater use of renewable energies and related technologies.
Source: Ambito
