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Pacific islands back Australia joint bid to host Cop 29

  • Market: Emissions
  • 15/07/22

The Australian government's plans to co-host the Cop 29 UN climate summit in 2024 with its Pacific island neighbours received support from regional leaders atthis week's annual meeting of the Pacific Island Forum (PIF) held in Suva, Fiji.

The move by the recently elected Labor federal government in Australia aims to demonstrate to the global community that the country is serious about being a progressive partner in reducing global greenhouse gas (GHG) emissions after delay and obstruction by the previous coalition administration and to reset relations with the Pacific island region, which has demanded Australia deepen it GHG cuts.

"In the (PIF) communique it is reflected the support of all of, every single one of, the island nations support for our bid for a Conference of the Parties on climate change to be held with Australia and the Pacific," Australian prime minister Anthony Albanese said after the PIF leaders meeting.

The conference itself, the lead-up to Cop 29, consists of a meeting of the world's leaders and also consists of a range of advance forums and activities in the years leading up to it, Albanese said. "That is something in which I asked Pacific islanders leaders to think about what contribution they could make and how they could be involved and engaged and involved. They were interested in doing that."

The decision to award the hosting of Cop 29 will not be made until Cop 27, which is being held at Sharm el-Sheikh, Egypt in November. "There are other bidders, my understanding is Germany, for example, is one bidder to host the conference," Albanese said. "I think it really helps Australia's chances of hosting, the fact that we have such strong support from the Pacific."

Pacific island leaders have called for deeper GHG cuts to avoid the impact of climate change as many of the countries dotted across the Pacific Ocean are susceptible to rising seas levels as global average temperature increase.

Pacific island leaders welcomed the Australian government's deeper GHG emissions reduction by 2030 to 43pc below 2005 levels from the previous target under the previous administration of a 26-28pc cut.

"Throughout every meeting and discussion I've held this week, I have been clear and consistent in our asks for more ambitious climate commitments," Fiji prime minister Frank Bainimarama said during the PIF. "We simply cannot settle for anything less than the survival of every Pacific Island country."

"Most urgently, it requires that we end our fossil fuel addiction, including coal. That is our ask of Australia. That is our ask of New Zealand, the USA, India, the European Union, China and every other high-emitting country," Bainimarama said.

Australia is the world's second largest exporter of thermal coal and around 60pc of electricity in east Australia is generated from coal-fired power plants.

Developed nation funding

The Pacific islands also depend on funding from developed nations, such as Australia, to finance climate change adaption and mitigation measures. Australia's former prime minister Scott Morrison in November last year pledged A$500mn ($337mn) in international climate financing over the next five years to a total of A$2bn to support Pacific island countries and southeast Asia to tackle the impact of climate change. But the funding would not be allocated through the Green Climate Fund (GCF).

The GCF is the UN's main vehicle to transfer $100bn/yr from developed to developing countries by 2020, which was a pledge made by developed nations in 2010.Australian foreign minister Penny Wong said the government has not made a final decision yet on rejoining the GCF.


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08/04/25

Singapore, Chile sign Article 6 carbon credit deal

Singapore, Chile sign Article 6 carbon credit deal

Singapore, 8 April (Argus) — Singapore and Chile signed an implementation agreement on 7 April to collaborate on carbon credits under Article 6 of the Paris Agreement. The countries will begin the ratification process and operationalise the agreement following the signing, according to Singapore's Ministry of Trade and Industry (MTI). The collaboration will involve financing towards unlocking additional mitigation potential in Chile, and "will help Singapore to meet our climate target while bringing climate investments into Chile," said Singapore's minister for sustainability and the environment, Grace Fu. The implementation agreement sets up a framework for the generation and transfer of carbon credits from carbon mitigation projects under Article 6. More information on the authorisation process for the carbon credit projects and eligible carbon crediting methodologies will be published in due course, according to the MTI. Carbon credits traded under Article 6 count towards the buyer's nationally determined contribution (NDC). Singapore submitted its new emissions reduction target in February, aiming to reduce emissions to 45mn-50mn t of CO2 equivalent in 2035 as part of its NDC. This is Singapore's second deal with a Latin American country, following an agreement signed on 1 April with Peru . Singapore has signed similar agreements with Papua New Guinea, Ghana and Bhutan. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Oil companies far from Paris accord alignment: Report


08/04/25
News
08/04/25

Oil companies far from Paris accord alignment: Report

London, 8 April (Argus) — None of the 30 oil and gas producers assessed are close to being in line with Paris climate agreement targets "and some have regressed", a report from think-tank Carbon Tracker found today. Carbon Tracker flagged "backsliding, particularly around oil and gas production plans" from the producers assessed in its report, Paris Maligned III . The think-tank assessed 30 of the largest producers — a mixture of corporations and national oil companies — against six metrics. These included production plans, greenhouse gas (GHG) reduction targets and methane reduction targets. It did not assess producers based in countries subject to international sanctions. "Almost all producers are planning to increase oil and gas production in the coming years… Such growth plans are at odds with the Paris Agreement's 1.5˚C target and many are incompatible with a below 2˚C scenario", the report found. The Intergovernmental Panel on Climate Change — seen as the overarching consensus on climate science — notes that a substantial reduction in fossil fuels is needed in order to reach climate goals. The Paris agreement seeks to limit the rise in global temperatures to "well below" 2°C above pre-industrial levels and preferably to 1.5°C. The only producers assessed that are not planning to increase production are London-listed independent Harbour Energy and Spain's Repsol, Carbon Tracker found. Carbon Tracker ranked Repsol highest overall for alignment with Paris agreement goals and Harbour Energy in second place. European companies were ranked more highly in line with Paris goals, with seven of the top 10 places. Three state-owned oil companies — Mexico's Pemex, Algeria's Sonatrach and Kuwait's KPC — and US firms ExxonMobil and ConocoPhillips took the five lowest places in the ranking table. "Despite some political and market headwinds, investor engagement on climate risk remains strong, particularly in Europe", the report noted. Carbon Tracker this year scored companies on the extent to which they planned to cut methane emissions — specifically "near-zero methane by 2030" across upstream activities and "midstream gas assets where applicable", it said. This is in line with the decarbonisation charter which many of the companies assessed signed up to at the UN Cop 28 climate summit in December 2023. Companies' methane reduction plans "are typically more climate-aligned than their overall GHG targets", the report found. But "there is still considerable room for improvement because significant sources of methane emissions are overlooked", it added. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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USDA to release paused funds for higher biofuel blends


04/04/25
News
04/04/25

USDA to release paused funds for higher biofuel blends

New York, 4 April (Argus) — The US Department of Agriculture (USDA) said this week that the agency would release $537mn for 543 projects meant to expand infrastructure for higher biofuel blends, reviving many projects that were funded by former US president Joe Biden and then paused by the new administration. The grants will help support the installation of biofuel storage tanks and dispensers of higher ethanol blends, including E15 and E85, and higher biodiesel blends, including B20 and B99. They come from the Higher Blends Infrastructure Incentive Program, which started during US president Donald Trump's first term to help reduce the cost of installing biofuel infrastructure but was more recently expanded in scope with new funds from the Inflation Reduction Act. Project funding had been stalled after Trump pressed federal agencies to pause the disbursement of funds appropriated by that 2022 climate law. That directive affected projects due for funding under the higher blends program, including some approved in the final days of the Biden administration. Trump's efforts to freeze legislatively-approved funding is the subject of multiple court cases. USDA said that of the 543 projects approved for support, 188 projects — amounting to nearly $260mn of spending — were new commitments under the Trump administration. The largest of the new projects is a $14.3mn grant for QuikTrip to install E15 and B20 dispensers at 75 fueling stations across 13 states. More projects received funds in California than in any other state. USDA said releasing the funds — at the same time as various other government programs remain on hold — is part of its commitment to "aggressively exploring ways to unleash American energy and incentivize the production and use of homegrown US biofuels." Biofuel groups see potential for supportive policy under the Trump administration and lobbied US officials at a meeting this week for a steep increase in biomass-based diesel blend mandates. Ethanol lobbyists are privately optimistic too that the administration will soon start issuing emergency waivers to bypass typical summertime limits on nationwide E15 access. Support for biofuels is one way the Trump administration could reduce the toll on US farmers from an increasingly volatile trade war that threatens to cut off export markets for US corn and soy. USDA noted that the higher blends program, by allowing for more ethanol and biodiesel consumption, "protects American farmers from retaliatory trade practices." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU sees no credibility issue in 2040 GHG target delay


04/04/25
News
04/04/25

EU sees no credibility issue in 2040 GHG target delay

Brussels, 4 April (Argus) — The lack of a proposal for a 2040 greenhouse gas (GHG) reduction target is not a credibility issue for the European Commission, officials said. The commission will have an "ambitious" 2040 GHG proposal in time to derive a 2035 climate plan for the EU "well in time" for the UN Cop 30 climate talks in Belem, Brazil, over 10-21 November. The commission was expected to make a legislative proposal for a 2040 EU climate target no later than six months after the conclusion of the first global stocktake under the Paris climate agreement, which concluded at Cop 28 in December 2023, as per the bloc's European Climate Law. The process is "quite late nationally and also globally", the commission acknowledged. But officials insist that the update to the climate law, setting a 2040 GHG target, will come "well in time" for the Cop process. The EU will then derive its nationally determined contribution (NDC) to the Paris deal for 2035 from 2040. The official deadline for parties to submit their updated NDC was 10 February, but only 12 countries made timely submissions. "The credibility issue is much less to do with the agenda now," climate spokesperson Anna-Kaisa Itkonen said. EU climate commissioner Wopke Hoekstra has made "very, very clear" that the commission is preparing for an "ambitious climate law". "Ninety per cent is currently in the political guidelines," Itkonen said. "It is the starting point for these discussions," she added, underlining the extreme importance of presenting a 2040 proposal that has a "substantial majority". Another EU source noted that the commission is discussing various options and scenarios with EU member states and the European Parliament. "We want to keep the ambition as high as possible. So our starting point of discussion is 90pc," the source said. Discussion of 2040 flexibility — such as following a weaker trajectory toward climate neutrality, or using international credits — would have "severely negative" implications for the EU's standing in international climate action, NGO Bellona Europa's senior manager for carbon accounting, Mark Preston Aragones, said. "The commission should not come with an already watered-down proposal even before negotiations formally begin with the European Parliament and EU member states," he said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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New tariffs could upend US tallow imports


03/04/25
News
03/04/25

New tariffs could upend US tallow imports

New York, 3 April (Argus) — New US tariffs on nearly all foreign products could deter further imports of beef tallow, a fast-rising biofuel feedstock and food ingredient that had until now largely evaded President Donald Trump's efforts to reshape global trade. Tallow was the most used feedstock for US biomass-based diesel production in January for the first month ever, with consumption by pound rising month to month despite sharp declines in actual biorefining and in use of competing feedstocks. The beef byproduct benefits from US policies, including a new federal tax credit known as "45Z", that offer greater subsidies to fuel derived from waste than fuel derived from first-generation crops. Much of that tallow is sourced domestically, but the US also imported more than 880,000t of tallow last year, up 29pc from just two years earlier. The majority of those imports last year came from Brazil, which until now has faced a small 0.43¢/kg (19.5¢/lb) tariff, and from Australia, which was exempt from any tallow-specific tariffs under a free trade agreement with US. But starting on 5 April, both countries will be subject to at least the new 10pc charge on foreign imports. There are some carveouts from tariffs for certain energy products, but animal fats are not included. Some other major suppliers — like Argentina, Uruguay, and New Zealand — will soon have new tariffs in place too, although tallow from Canada is for now unaffected because it is covered by the US-Mexico-Canada free trade agreement. Brazil tallow shipments to the US totaled around 300,000t in 2024, marking an all-time high, but tallow shipments during the fourth quarter of 2024 fell under the 2023 levels as uncertainty about future tax policy slowed buying interest. Feedstock demand in general in the US has remained muted to start this year because of poor biofuel production margins, and that has extended to global tallow flows. Tallow suppliers in Brazil for instance were already experiencing decreased interest from US producers before tariffs. Brazil tallow prices for export last closed at $1,080/t on 28 March, rising about 4pc year-to-date amid support from the 45Z guidance and aid from Brazil's growing biodiesel industry, which is paying a hefty premium for tallow compared to exports. While the large majority of Brazilian tallow exports end up in the US, Australian suppliers have more flexibility and could send more volume to Singapore instead if tariffs deter US buyers. Export prices out of Australia peaked this year at $1,185/t on 4 March but have since trended lower to last close at $1,050/t on 1 April. In general, market participants say international tallow suppliers would have to drop offers to keep trade flows intact. Other policy shifts affect flows Even as US farm groups clamored for more muscular foreign feedstock limits over much of the last year, tallow had until now largely dodged any significant restrictions. Recent US guidance around 45Z treats all tallow, whether produced in the US or shipped long distances to reach the US, the same. Other foreign feedstocks were treated more harshly, with the same guidance providing no pathway at all for road fuels from foreign used cooking oil and also pinning the carbon intensity of canola oil — largely from Canada — as generally too high to claim any subsidy. But tariffs on major suppliers of tallow to the US, and the threat of additional charges if countries retaliate, could give refiners pause. Demand could rise for domestic animal fats or alternatively for domestic vegetable oils that can also be refined into fuel, especially if retaliatory tariffs cut off global markets for US farm products like soybean oil. There is also risk if Republicans in the Trump administration or Congress reshape rules around 45Z to penalize foreign feedstocks. At the same time, a minimum 10pc charge for tallow outside North America is a more manageable price to pay compared to other feedstocks — including a collection of charges amounting to a possible 69.5pc tax on Chinese used cooking oil. And if the US sets biofuel blend mandates as high as some oil and farm groups are pushing , strong demand could leave producers with little choice but to continue importing at least some feedstock from abroad to continue making fuel. Not all US renewable diesel producers will be equally impacted by tariffs either. Diamond Green Diesel operates Gulf Coast biorefineries in foreign-trade zones, which allow companies to avoid tariffs on foreign inputs for products that are ultimately exported. Biofuel producers in these zones could theoretically refine foreign tallow, claim a 45Z subsidy, and avoid feedstock tariffs as long as they ship the fuel abroad. Jurisdictions like the EU and UK, where sustainable aviation fuel mandates took effect this year, are attractive destinations. And there is still strong demand from the US food sector, with edible tallow prices in Chicago up 18pc so far this year. Trump allies, including his top health official, have pushed tallow as an alternative to seed oils. By Cole Martin and Jamuna Gautam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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