Queensland court finds against coal mine due to CO2

Market: Coal, Coking coal, Emissions
28/11/22

The Queensland Land Court has recommended that the state government not grant a mining lease to the 40mn t/yr Galilee Basin thermal coal mine citing damage caused by carbon dioxide (CO2) emissions, adding to the difficulties faced by those wanting to develop coal mines in Australia.

The Land Court found that the 1.58Gt of CO2 generated by burning the coal from entrepreneur Clive Palmer's Alpha North coal mine project in the Galilee basin would contribute to environmental harm in its recommendation that the mine not proceed. The ruling adds more complexity to those seeking to develop coal mines in Australia, particularly in Queensland.

The Alpha North project would export coal with lower calorific value than grades typically sold from Australia through the port of Abbot Point, operating in the same basin as Indian firm Adani's 20mn t/yr Carmichael mine. The project is among the 19 coal and gas projects that have been subject to a further period of public comment at the federal level because of the impact of climate change on various protected parts of the Australian environment, including world and national heritage sites and wetlands.

All 19 projects were open for public comment during 3-24 November, with legal centre Environmental Justice Australia asking for the federal government to reconsider previous decisions to declare them as controlled actions. The process, which began in July, has delayed project approvals at a time of record-high thermal coal prices.

The Land Court decision adds further uncertainty and delays, although it could be appealed or ignored by the state government as it is only a recommendation.

The previous federal coalition government in March won its appeal against a court ruling that the environment minister has a duty of care to young people when making decisions about resource projects that will emit large volumes of greenhouse gases. The court case was seen to have delayed some mine approvals while the-then federal environment minister Sussan Ley waited for the matter to be resolved.

The current Labor government in Canberra has been more proactive in tackling climate change, including legislating a greenhouse gas emissions reduction target of 43pc on 2005 levels by 2030. But it has not banned all new coal mine development, as proposed by The Greens, because it thinks this will be impractical during the transition to renewable energy. The Labor government also has close ties with unions, including powerful mining unions.

By Jo Clarke

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25/11/24

US’ Peabody to buy Anglo’s Australian met coal assets

Singapore, 25 November (Argus) — US coal producer Peabody Energy has agreed to acquire the bulk of coking coal assets that UK-South African mining firm Anglo American is seeking to divest as it exits the coal sector. Peabody plans to buy Anglo's majority stakes, at up to $3.8bn, in four metallurgical coal mines — Moranbah North, Grosvenor, Aquila and Capcoal — located in Australia's Bowen Basin, with the transaction expected to close by mid-2025 and subject to customary closing conditions, the producer said in a statement. With the acquisition of coal mines, Peabody's combined US-Australia production will rise from 10.6mn short tons/yr at present, to an estimate of 11.3mn st/yr (10.25mn t) by 2026, according to Peabody, strengthening the producer's position in the premium hard coking coal (PHCC) market. Moranbah North, Grosvenor and Aquila are PHCC mines, while Capcoal produces a combination of PHCC, pulverised coal injection (PCI) and other coal grades. At present, Australian low volatile hard coking coal, or tier-2 coking coal, accounts for 55pc of Peabody's 7.4mn st in coking coal sales, but the acquisition of new assets will bring PHCC's share up to 51pc and reduce its tier 2 coal to 24pc. Peabody also produces high volatile A coal in the US, accounting for 12pc of sales this year. In addition to the sale of assets to Peabody, Anglo has agreed to sell the Dawson mine in Central Queensland to Indonesian mining company PT Bukit Makmur Mandiri Utama (BUMA) for $455mn. Earlier this month, Anglo agreed the sale of its 33pc share of the [Jellinbah Group coking coal joint venture]https://direct.argusmedia.com/newsandanalysis/article/2624965) to partner Australia-based Zashvin at $A1.6bn ($1.04bn). In May, Anglo announced plans to exit its coal, platinum, nickel and diamond businesses shortly after rejecting repeated takeover bids from Australian resources firm BHP. These deals come against a backdrop of a challenging price environment for steel making and subsequent weakness in coking coal prices, implying tight margins for coal producers. After reaching a high of $336.50/t fob Australia, the premium low volatile coking coal fell steadily throughout this year to reach $176.50/t in September, before recovering to remain in the $201-208/t range for most of November. In addition to a less than friendly investment climate for coal projects, Australia's Queensland state and New South Wales (NSW) state governments increased royalties on coal sales in 2023 and 2024 respectively, putting further strain on Australian miners already facing inflationary pressure from wages, equipment and fuel costs. Lower coking coal prices this year have translated to reduced royalty payments, but have yet to stem the tide of consolidations and asset sales as mining companies exit the sector. In August, Australia-based diversified metals producer South32 completed the sale of its Illawarra coking coal operations in NSW to an entity owned by Singapore-based Golden Energy and Resources (Gear) and Australia's M Resources for $1.65bn. In the US, rising mining costs and weak seaborne prices for most of this year led to the closure of smaller high-cost operations and mergers such as that of Arch Resources and Consol Energy to form Core Natural Resources , expected to close by the first quarter of 2025. In July, trading firm Glencore completed its acquisition of a majority stake in Elk Valley Resources, the coking coal division of Canadian mining firm Teck Resources, growing the former's thermal and coking coal production to 130mn t/yr. By Siew Hua Seah Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Talks leave ‘mountain of work’ for Brazil in 2025

24/11/24

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24/11/24

Cop: Talks leave ‘mountain of work’ for Brazil in 2025

Baku, 24 November (Argus) — The UN Cop 30 climate talks in Brazil next year may take on a new level of importance after countries at the now-completed Cop 29 in Baku, Azerbaijan, left some significant issues on the table, most notably now to keep the world on track to meet the goals of the Paris Agreement. Negotiators in Baku completed their work just after 05:30 local time (01:30 GMT) on Sunday — nearly a day and a half after the scheduled end of the Cop — with a deal on climate finance that has left developing countries furious. The Indian negotiator called the finance agreement, which the country opposed after it was gavelled, "nothing more than an optical illusion". She complained that the text was adopted even though they had informed the secretariat they wanted to make a statement before its adoption. Nigeria and Bolivia came out in support to India to say were rejecting the deal, with the latter calling the agreement "an insult". Known as the new collective quantified goal (NCQG), the deal sets a target of "at least" $300bn/yr for developing countries by 2035, with developed countries "taking the lead". The goal is meant to build on the $100bn/yr that developed countries agreed to deliver to developing countries over 2020-25. The finance will come from "a wide variety of sources, public and private, bilateral and multilateral, including alternative sources". This is more than the $250bn/yr first proposed by developed countries. But this is well below the $1.3 trillion, including $440bn-600bn/yr in public finance mostly in grants and concessional finance, sought by developing economies. The delegations salvaged what for a time appeared to be talks headed for collapse, with two groups temporarily walking out of the negotiations. But developing countries indicated that the Baku deals falls far short of what they need to deal with climate change and support their energy transition. "They were never going to be enough," special envoy for climate change and environment for Vanuatu Ralph Regenvanu said. "And even then, based on our experience with such pledges in the past, we know they will not be fulfilled," he said. India's negotiator pointed to the "unwillingness from developed countries to fulfill their responsibilities". This will severely impact growth in developing nations, she added. EU climate commissioner Wopke Hoekstra, the only developed party to take the floor just after the finance deal was agreed, said that increasing the goal three-fold, from $100bn/yr, "is ambitious, needed, realistic and achievable". He said that with the help of the multilateral development banks (MDBs), the bloc is confident $1.3 trillion/yr of climate finance for developing economies could be reached. Baku to Belem The finance deal agreed in Baku calls on all actors "to enable the scaling up of financing" from all public and private sources to at least $1.3 trillion per year by 2035. A "Baku to Belem Roadmap to $1.3 trillion", was launched to that effect. The only other major decision to come out of Baku was the adoption of the rules that will operationalise the international carbon market under Article 6 of the Paris Agreement. Progress on the implementation of the first global stocktake — the main outcome document from Cop 28, which included the historic call to transition away from fossil fuels — was left for next year. The talks failed to overcome a broad north-south divide and were hampered by the finance talks and efforts by some delegations to undo past decisions. Developed countries called for stronger global action on emissions reductions, but developing nations responded that they cannot implement an energy transition without adequate finance. Many Latin American and African nations, as well as island states, also complained during the talks about the lack of mitigation ambition. But countries including Saudi Arabia opposed including language on fossil fuels, or any mention that countries should undertake deep emissions cuts. India even pushed back on the 1.5°C temperature limit of the Paris Agreement, which was reinforced in Dubai last year. The rejected draft text for the stocktake reaffirms "the need for deep, rapid and sustained reductions in greenhouse gas emissions in line with 1.5 °C pathways". It refers to the energy package without going into details, and keeps the door open to "transitional fuels". Parties will revisit mitigation next year in Belem, leaving Baku "with a mountain of work to do," according to UN climate body UNFCCC executive secretary Simon Stiell. Mitigation was always going to be the focus of Cop 30, particularly with countries due to submit their new emissions-reduction pledges, or nationally determined contributions (NDCs), to the UNFCCC by February. But the struggle in Baku could bring new pressure to the Brazilian government. The country's environment minister Maria Silva on Saturday warned that failure in Baku would likely damage the UN process, especially with the US, one of the world's leading emitters, expected to exit the Paris Agreement again after former president Donald Trump takes office in January. By Michael Ball and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Carbon market rules adopted as finance talks stall

23/11/24

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23/11/24

Cop: Carbon market rules adopted as finance talks stall

Baku, 23 November (Argus) — Countries at the UN Cop 29 climate talks in Baku, Azerbaijan, on late Saturday adopted the rules for international carbon trading under the Paris Agreement, a rare bright spot in contentious negotiations that have dragged on well past their scheduled end. After adopting rules for Article 6.2 and Article 6.4 of the Paris Agreement during a late evening plenary, ministers and negotiators applauded in recognition of their efforts. The decisions come a year after the carbon market rules were supposed to have been adopted at Cop 28 in Dubai, nine years after Cop 29 in Paris, and about 24 hours after the Baku talks were scheduled to end. "We have ended a decade-long wait and unlocked a critical tool for keeping 1.5 degrees in reach," Cop 29 president Mukhtar Babayev said. "Climate change is a transnational challenge and Article 6 will enable transnational solutions. Because the atmosphere does not care where emissions savings are made." Article 6.2 and Article 6.4 govern how countries can use carbon credits to meet their greenhouse gas (GHG) emissions-reduction pledges, known as nationally determined contributions (NDCs). Article 6 aims to help set rules on global carbon trade. Article 6 discussions helped get Cop 29 off to a positive start, with the adoption of key standards for the creation of carbon credits under the Paris accord. But after that, negotiators still had to resolve a number of issues, most notably the design of an international registry to keep track of the credits. The talks ultimately settled on a "dual layer" approach, agreed to create a registry to issue and trade credits that would be run by the UN and would be separate from the Article 6 registry, which would only serve an accounting function. The text also says that the inclusion of any emissions credits — known as internationally transferable mitigation outcome (Itmo) units — in the UN registry does not represent any sort of validation of their environmental integrity, in response to concerns raised by the US and others. Further refinements were made to the decision text over the last three days before the Saturday night decision, including the details on what countries need to include in electronic reporting of the credits. Carbon market supporters have generally backed the Baku texts, although some do not agree with all of the details. But they say the text does not harm or constrain international carbon trading, meeting their main objective for Baku. Saturday standoff But Cop 29 has reached a stalemate in negotiations on a new climate finance goal, as developed and developing countries struggle to bridge a huge divide on how much the latter should receive from the former. The lack of progress has raised the possibility the talks could collapse and end without any agreement at all. "This is the final stretch you have all been working very hard and I know that none of us want to leave Baku without a good outcome," Babayev said. "However, time is not on our side." The cop presidency suspended the plenary after the Article 6 decisions to give countries more time to try to reach an agreement, saying it would resume "later tonight." Earlier in the evening, delegates from the Alliance of Small Island States (AOSIS) and the Least Developed Countries (LDCs) group staged a temporary walkout to protest what they say has been a process that lacks inclusion. "The process is not including us as much as it should be, and when it does, and we provide input, our inputs are being ignored," said Evans Njewa, a Malawai environment official who chairs the LDC Group. The most recent negotiating text , released on Friday, angered developing country officials by proposing that developed economies provide $250bn/yr in climate finance by 2035, from a broad range of sources, not just public funds. Developing economies earlier this week floated numbers of $440bn-$600mn/yr for a public finance layer. They also called for $1.3 trillion/yr in total climate finance from developed countries, a sum which the latest draft instead calls for "all actors" to work toward. As a potential compromise, some countries, including Brazil and Somalia, have suggested at least $300bn/yr and up to $350bn/yr or $390bn/yr. Further eroding trust among delegates were reports that an official from Saudi Arabia had been allowed to make changes to negotiating text. "At Cop 29, we are witnessing a geopolitical power play by some fossil fuel states at the expense of the poorest. As the EU, we strongly oppose abandoning the path set in Dubai," German foreign affairs minister Annalena Baerbock said. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop 29 goes into overtime on finance deadlock

22/11/24

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22/11/24

Cop 29 goes into overtime on finance deadlock

Developing countries' discontent over the climate finance offer is meeting a muted response, writes Caroline Varin Baku, 22 November (Argus) — As the UN Cop 29 climate conference went into overtime, early reactions of consternation towards a new climate finance draft quickly gave way to studious silence, and some new numbers floated by developing nations. Parties are negotiating a new collective quantified goal — or climate finance target — building on the $100bn/yr that developed countries agreed to deliver to developing countries over 2020-25. The updated draft of the new finance goal text — the centrepiece of this Cop — proposes a figure of $250bn/yr by 2035, "from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources". This is the developed country parties' submission, the Cop 29 presidency acknowledged. Developing nations have been waiting for this number for months, and calling on developed economies to come up with one throughout this summit. They rejected the offer instantly. "The [$250bn/yr] offered by developed countries is a spit in the face of vulnerable nations like mine," Panama's lead climate negotiator, Juan Carlos Monterrey Gomez, said. Negotiating group the Alliance of Small Island States called it "a cap that will severely stagnate climate action efforts". The African Group of Negotiators and Colombia called it "unacceptable". This is far off the mark for developing economies, which earlier this week floated numbers of $440bn-600bn/yr for a public finance layer. They also called for $1.3 trillion/yr in total climate finance from developed countries, a sum which the new text instead calls for "all actors" to work toward. China reiterated on 21 November that "the voluntary support" of the global south was not to be counted towards the goal. A UN-mandated expert group indicated that the figure put forward by developed countries "is too low" and not consistent with the Paris Agreement goals. The new finance goal for developing countries, based on components that it covers, should commit developed countries to provide at least $300bn/yr by 2030 and $390bn/yr by 2035, it said. Brazil indicated that it is now pushing for these targets. The final amount for the new finance goal could potentially be around $300bn-350bn/yr, a Somalian delegate told Argus . A goal of $300bn/yr by 2035 is achievable with projected finance, further reforms and shareholder support at multilateral development banks (MDBs), and some growth in bilateral funding, climate think-tank WRI's finance programme director, Melanie Robinson, said. "Going beyond [$300bn/yr] would even be possible if a high proportion of developing countries' share of MDB finance is included," she added. All eyes turn to the EU Unsurprisingly, developed nations offered more muted responses. "It has been a significant lift over the past decade to meet the prior goal [of $100bn/yr]," a senior US official said, and the new goal will require even more ambition and "extraordinary reach". The US has just achieved its target to provide $11bn/yr in climate finance under the Paris climate agreement by 2024. But US climate funding is likely to dry up once president-elect Donald Trump, a climate sceptic who withdrew the US from the Paris accord during his first term, takes office. Norway simply told Argus that the delegation was "happier" with the text. The EU has stayed silent, with all eyes on the bloc as the US' influence wanes. The EU contributed €28.6bn ($29.8bn) in climate finance from public budgets in 2023. Developed nations expressed frustration towards the lack of progress on mitigation — actions to cut greenhouse gas emissions. Mentions of fossil fuels have been removed from new draft texts, including "transitioning away" from fossil fuels. This could still represent a potential red line for them. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Opinion: Bridging the divide

22/11/24

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22/11/24

Opinion: Bridging the divide

Cop summits put the gap between developed and developing countries in stark relief and demand a strong moderator Baku, 22 November (Argus) — The UN's Cop climate summits always involve a high-stakes test of multilateralism. But the Cop 29 gathering that is crawling towards its conclusion in Baku this week has pushed this concept to its limit. The summit faced serious challenges even before it kicked off. Azerbaijan took on the presidency relatively late in the day and the country's president, Ilham Aliyev, irritated some delegates with an opening speech that lauded oil and gas as a "gift from God" and railed against "western fake news". His comments on European nations' Pacific island territories prompted France's energy minister to boycott the talks, while the Cop chief executive was caught on film trying to facilitate fossil fuel deals. And the broader geopolitical background for the gathering was, of course, "grim", as EU climate commissioner Wopke Hoekstra noted, even before delegates tackled the summit's key discussion topic — money. At the heart of this year's Cop is the need to agree a new climate finance goal — a hugely divisive subject at the best of times. Discussions start with countries' wealth, take into account historical responsibility for emissions, and often end up with accusations of neocolonialism and calls for reparations. Figuring out who pays for what is crucial to advancing any kind of meaningful energy transition — and is hence a regular Cop sticking point. Developing countries have long argued that they are not able to decarbonise or implement energy transition plans without adequate financing, and they are prepared to hold other issues hostage to achieve this. Equally, developed countries will not budge on finance until stronger emissions cuts are pledged. Cop summits throw the developed/developing world divide into stark relief as well as shine an unforgiving light on weak management and oversight of Cop debate — an event where every country has an equal vote and needs a strong moderator to bridge that deepening developed and developing world division. This year's summit falls between two much more heavily-hyped Cops, and next year's host Brazil has already taken centre stage, boosted by also holding the G20 presidency. Cop 29 president Mukhtar Babayev asked Brazil and 2021 host the UK to help ensure a balanced outcome, while a strong focus on climate at this week's G20 summit in Rio de Janeiro lent some support to discussions in Baku. More challenges loom. US president-elect Donald Trump has threatened to pull the US — the world's second-largest greenhouse gas emitter — out of the UN Paris Agreement for a second time, and there are fears that fellow G20 member Argentina might quit too. But the Cop process has dealt with some of these challenges before — it is built to withstand a term or two of an unsympathetic world leader, and any exits from the Paris accord could galvanise others to step up their policy commitments, several delegates in Baku suggest. And the issue overshadowing it all — and the reason nearly 200 countries still turn up each year — is not going away. The world has already warmed by around 1.3°C above pre-industrial levels and this year is set to smash last year's record as the hottest. Leaders from both developed and developing countries spoke of catastrophic floods, droughts, heatwaves and storms. It has become a truism, but when it comes to the tricky issue of money, the only thing more daunting than the cost of tackling climate change is the cost of ignoring it. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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