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US climate policy is lacking: Government report

  • Market: Biofuels, Coal, Crude oil, Electricity, Emissions, Hydrogen, Metals, Natural gas, Oil products, Petrochemicals
  • 14/11/23

Every region of the US is already feeling the effects of climate change but policymakers are still not doing enough to reduce greenhouse gas (GHG) emissions, according to a new report from US government scientists.

The fifth National Climate Assessment, a congressionally mandated report released around every five years, is the product of 14 federal agencies and hundreds of authors. It offers largely similar conclusions as prior iterations, namely that fossil fuel use is the primary driver of global warming, though the authors note that recent scientific advances allow for more certainty around future projections.

"This assessment shows us in clear scientific terms that climate change is impacting all regions, all sectors of the United States," US president Joe Biden said today. "Not just some, all."

The US now experiences a $1bn weather disaster about every three weeks, compared with once every four months during the 1980s, and is set to warm more on average than the rest of the world as global temperatures continue rising, the report says.

Regional impacts vary. Heightened drought risks in the western US endanger hydropower generation for instance, while sea level rise is projected to be greatest along the US Gulf Coast, threatening much of the country's crude oil production and refining capacity.

US GHG emissions fell by 12pc from 2005-2019, largely because of declining coal-fired generation, but meeting the country's Paris climate agreement commitments and achieving net-zero emissions by 2050 will require emissions to decline by more than 6pc/yr on average. Recent policies like the federal Inflation Reduction Act's clean energy tax credits and new state-level mitigation efforts have helped, but much more action is needed, according to the report.

Existing policies "remain woefully insufficient and incremental," said Kristina Dahl, a report contributor and principal climate scientist at the Union of Concerned Scientists.

Some solutions are already cost-effective, such as building more wind and solar capacity and electrifying more vehicles and heating systems. Less proven technologies like carbon capture may help, according to the report, which also expresses cautious optimism about the voluntary carbon offset market's potential role helping companies meet their climate targets.

The country's exact path to net-zero is still hazy, however, given uncertainty around the role of natural gas-fired generation in a renewables-dominant grid and the extent to which biofuels and hydrogen will help decarbonize sectors that are difficult to electrify. The report notes that most available modeling of a net-zero US involves "substantial" reliance on carbon removals, although it is unclear what strategies, which range from reforestation to industrial direct air capture, will be available at scale.

Though the researchers make clear that the risks of climate change are far greater, the energy transition creates its own risks too. The report notes the high likelihood of rising power demand as more sectors electrify, requiring more investments in energy infrastructure, and the threat of "near-term shortages" of metals and minerals crucial for zero-carbon technologies.


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15/11/24

Cop: Oil firms commit $500mn to energy access: Update

Cop: Oil firms commit $500mn to energy access: Update

Updates throughout Baku, 15 November (Argus) — European oil firms TotalEnergies, BP, Shell and Equinor today announced a $500mn joint investment commitment "over the coming years" for universal energy access in sub-Saharan Africa and south and southeast Asia. The firms will jointly invest in a broad range of solutions, including solar home systems, mini/metro grids, clean cooking solutions, and enabling technologies such as e-mobility, energy storage and management solutions, TotalEnergies said. The investment is in support of the UN sustainable development goal 7, which aims for universal access to sustainable, affordable and reliable energy by 2030. The timeline for the investment is unclear. "A global private equity firm with a strong track record in impact investing, has been selected to manage the joint investment," the firms said. Investments in clean energy need to rise to around $4.5 trillion/yr by 2030 to be in line with an IEA scenario compatible with a 1.5°C temperature rise above pre-industrial levels, the lower limit under the Paris Agreement. The Paris climate accord seeks to limit global warming to "well below" 2°C above the pre-industrial average and preferably to 1.5°C. Developing countries alone could require up to $1 trillion/yr by 2030 and $1.3 trillion/yr by 2035 . TotalEnergies reported a profit of $22bn in 2023, while Shell and BP posted profits of $20.3bn and $13.8bn, respectively. Equinor made a profit of $11.9bn in 2023 . The announcement was made as the UN Cop 29 climate summit is taking place in Baku, Azerbaijan. The Cop 29 presidency signalled earlier this year that it was working on a $1bn climate fund , capitalised by fossil fuel-producing countries and companies. The fund is due to be a public-private partnership, with "concessional and grant-based support to rapidly address the consequences of natural disasters" in developing countries, Cop 29 president and Azeri ecology and natural resources minister Mukhtar Babayev said earlier this year. But the presidency has yet to announce progress on the plans, although finance announcements are typically expected to land during the summit's 'Finance day', which was yesterday. Cop 29 lead negotiator Yalchin Rafiyev said today that the presidency "received interest in the fund" and that it has not been delayed. By Bachar Halabi and Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Granholm calls for more efforts if US quits Paris


15/11/24
News
15/11/24

Cop: Granholm calls for more efforts if US quits Paris

New York, 15 November (Argus) — Countries at the UN Cop 29 climate summit in Baku, Azerbaijan, need to double down their efforts to fight climate change even if the US withdraws from the Paris Agreement, US energy secretary Jennifer Granholm said. Granholm pointed out that seven years ago, when the US government abandoned international cooperation on climate, the international stage stepped forward to lead climate efforts. US states and cities also stepped up to fill the void left by the absence of federal policy, she told delegates at a high-level meeting. "Climate has never been only about the US, it has been about all of us", adding that no other country should think about pulling out of the Paris accord. Granholm highlighted that the country's policies to support the clean energy economy will ensure that investment in clean energy technologies will continue in the US. Her comments were in line with US climate advisor John Podesta's earlier this week . "We are keeping the US climate movement alive by taking every action available thanks to a strategy that lays the foundation for decades of climate and clean energy progress that will continue to grow faster than ever before." she said. The US is projected to add more than 60GW of clean energy in 2024, more than twice the amount achieved in a previous year, according to Granholm. She added that the US has invested over $1.5 trillion in clean technologies and infrastructure as a result of this industrial strategy. With businesses and consumers investing $6 for every dollar of federal investment. By Jacqueline Echevarria Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Singapore joins EU-China green finance taxonomy


15/11/24
News
15/11/24

Cop: Singapore joins EU-China green finance taxonomy

Singapore, 15 November (Argus) — Singapore has joined the Multi-Jurisdiction Common Ground Taxonomy (M-CGT) during the UN Cop 29 summit on 14 November, expanding an existing agreement between the EU and China on a set of financial environmental objectives and criteria. The M-CGT allows for wider cross-border green financing and development of sustainable finance markets. It was developed by the People's Bank of China, the EU Directorate-general for financial stability, the Financial services and capital markets union, and the Monetary Authority of Singapore. The M-CGT is a comparison of the sustainable finance taxonomies of China, the EU and Singapore, and it builds on the EU-China Common Ground Taxonomy, an initiative launched in 2021 aimed at enhancing the interoperability of the EU's and China's taxonomies. It is designed to accommodate more jurisdictions in future, which will further help facilitate cross-border climate finance flows, and in turn improve investment environments. The M-CGT constitutes a set of environmental objectives and criteria that serves as a reference for entities such as financial institutions, corporates and investors to determine what can be considered green, said a joint statement by the parties. "While the M-CGT is not legally binding, green bonds and funds that align the M-CGT criteria can be considered by cross-border investors whose markets reference the taxonomies which are mapped to M-CGT, subject to applicable laws and regulations of each jurisdiction," stated the parties. The M-CGT is important "for enhancing the interoperability of taxonomies across jurisdictions," said Ma Jun, chairman of the Green Finance Committee of China Society for Finance and Banking, adding that market usage of the CGT in the past two years, including for labelling Chinese green bonds sold to international investors, has shown it can help to cut cross-border transaction costs and boost green capital flows, particularly to developing economies. The initial mapping exercise for the initiative indicated that around 60pc of common activities could be clearly defined under the most stringent criteria, mainly in the manufacturing, transportation, water and waste sectors, and 5pc of common activities in the electricity generation and construction sectors. Climate finance has been a focus of this year's Cop 29 summit, especially on agreeing a new climate finance goal for developing countries . Discussions have so far only led to a complicated draft that still lacks a position on an amount from developed countries, which are pushing for an increase in private finance mobilisation as part of a multi-layered goal. A UN-mandated high-level group noted yesterday that international private finance could meet around half of the funds that developing countries need — $1 trillion/yr by 2030 and $1.3 trillion/yr by 2035. But private investors have long been calling on governments to improve investment environments through clearer policies and provide easier access to public capital markets. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Korea’s Plagen plans Azeri green methanol plant


15/11/24
News
15/11/24

Cop: Korea’s Plagen plans Azeri green methanol plant

Baku, 15 November (Argus) — South Korean clean energy firm Plagen has signed an initial agreement to develop a green methanol production plant near the port of Baku, Azerbaijan. Plagen expects that the plant, which it described as Azerbaijan's first green methanol facility, will produce 10,000 t/yr of the fuel by 2028. It will use Plagen's technology, the firm said at a side event at the UN Cop 29 climate summit today. The methanol will be produced from agricultural waste and wood waste, including hazelnuts shells and almond shells, which will be sourced from Azerbaijan, Plagen chief executive officer John Kyung said. The production process yields 96t of methanol from 300t of biomass. The produced methanol will be used as bunker fuel, and contribute Baku port's goal to reach "carbon neutrality" by 2035 amid increased traffic through the Trans-Caspian International Transport Route, as ships seek alternatives to the fraught Suez Canal route. Kyung said today that the firm also has plans to produce green methanol at Indonesia's Batam to supply as bunker fuel to Singapore, the biggest bunkering port in the world. Plagen also expects 32,000 t/yr of green methanol production by 2027 at a plant in Taebaek, South Korea. This is up from 10,000 t/yr as previously planned . By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: European oil firms commit $500mn to energy access


15/11/24
News
15/11/24

Cop: European oil firms commit $500mn to energy access

Baku, 15 November (Argus) — European oil firms TotalEnergies, BP, Shell and Equinor today announced a $500mn joint investment commitment for universal energy access in sub-Saharan Africa and south and southeast Asia. The firms will jointly invest in a broad range of solutions, including solar home systems, mini/metro grids, clean cooking solutions, and enabling technologies such as e-mobility, energy storage and management solutions, TotalEnergies said. The investment is in support of the UN sustainable development goal 7, which aims for universal access to sustainable, affordable and reliable energy by 2030. Investments in clean energy need to rise to around $4.5 trillion/yr by 2030 to be in line with an IEA scenario compatible with a 1.5°C temperature rise above pre-industrial levels, the lower limit under the Paris Agreement. The Paris climate accord seeks to limit global warming to "well below" 2°C above the pre-industrial average and preferably to 1.5°C. Developing countries alone could require up to $1 trillion/yr by 2030 and $1.3 trillion/yr by 2035 . TotalEnergies reported a profit of $22bn in 2023, while Shell and BP posted profits of $20.3bn and $13.8bn, respectively. Equinor made a profit of $11.9bn in 2023 . The announcement was made as the UN Cop 29 climate summit is taking place in Baku, Azerbaijan. The Cop 29 presidency signalled earlier this year that it was working on a $1bn climate fund , capitalised by fossil fuel-producing countries and companies. The fund was due to be a public-private partnership, with "concessional and grant-based support to rapidly address the consequences of natural disasters" in developing countries, according to Cop 29 president and Azeri ecology and natural resources minister Mukhtar Babayev. But the presidency has yet to announce progress on the plans. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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