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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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07/01/25

Viewpoint: Australia edges towards LNG imports in 2025

Viewpoint: Australia edges towards LNG imports in 2025

Sydney, 7 January (Argus) — Australia — formerly the world's largest LNG exporter — edges closer to importing the fuel in 2025, after years of supply warnings from the Australian Energy Market Operator (Aemo). Anti-gas lobbying from environmental groups, new emissions laws, slumping exploration, and rising costs have all been blamed for forecasts of production falling below demand levels, even as gas use dips. Debate about the rationale and demand for LNG continues, with no buyers having signed term sales yet. But the recent purchase of the proposed 386 TJ/d (10.3mn m³/d) Outer Harbor LNG project has raised expectations that deals may occur in 2025, to alleviate winter shortfalls from 2026 onwards. Aemo is predicting southern Australia's gas output will drop by 40pc from 1,260 TJ/d in 2024 to 740 TJ/d in 2028, with four import projects proposed in the nation's south. Initial imports will most likely head to New South Wales (NSW) state, Australia's largest jurisdiction by population. NSW is largely reliant on the ExxonMobil-operated Gippsland basin joint venture for supply, and the closure of a 400 TJ/d plant at the formerly 1,150 TJ/d Longford facility this year has accelerated concerns. Australian firm Squadron Energy — owned by iron ore miner Fortescue — said its 2.4mn t/yr Port Kembla Energy Terminal in NSW is now ready for operations, which could cover NSW' entire winter demand of about 481 TJ/d, excluding gas-fired generation. Limited storage capacity exists and no new major fields are under near-term development, but increasing pipeline capacity to bring enough Queensland coal-bed methane south could prove critical. Expansion of Australian pipeline operator APA's 440 TJ/d South West Queensland pipeline could be approved in early 2025, raising gas security. LNG imports cost up to 25pc more than pipeline gas, with the AVX — Argus' assessment for month-ahead spot gas deliveries to Victoria — averaging A$12.46/GJ in 2024 t o 27 December, while the Argus Gladstone fob price — an LNG netback indicator calculated by subtracting freight and costs associated with production from the delivered price of LNG to Asia-Pacific — averaged A$16.03/GJ for the same period. On the export scene, Australian independent Santos will restart production at the 3.7mn t/yr Darwin LNG after commissioning the Barossa field in July-September 2025 . The project has withstood significant legal challenges since 2023, with Santos promising an offshore carbon capture and storage facility later this decade to offset emissions. Other Australian terminals will produce steady volumes in 2025. The Woodside-operated North West Shelf project took a 2.5mn t/yr train off line in 2024, reducing its nameplate capacity to 14.4mn t/yr. The facility will start processing about 1.5mn t/yr of onshore gas from Beach Energy and Mitsui's 250 TJ/d Waitsia plant from early 2025. Energy election Australia's federal elections must take place no later than May, in what could be a referendum on the Labor government's renewables-led vision for Australia's grid. Abolishing Coalition-era gas exploration grants, Labor finds itself wedged between critics of further gas extraction and domestic shortfalls which may be already contributing to manufacturing sector weakness. Aemo expects 13GW of gas-fired generation is required under Canberra's 2050 net zero target to firm renewables. But gas projects remain unpopular in many communities, while anti-fossil fuel member of parliaments could hold the balance of power in the next parliament, polls show. Labor is sticking to its 82pc renewables by 2030 plan, while the Coalition has said it will not be met and it would make changes to Australia's 43pc emissions reduction by 2030 target, persisting with coal until nuclear generators can be built. Regardless, it appears much more gas will be needed in the short term as coal plants retire, meaning the temptation to raid east coast LNG projects for supply will remain. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Caracas clamps down before disputed inauguration


06/01/25
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06/01/25

Caracas clamps down before disputed inauguration

Caracas, 6 January (Argus) — Exiled Venezuelan politician Edmundo Gonzalez called on his opposition supporters to protest President Nicolas Maduro's plans to take the oath of office on 10 January, despite the US and other countries long backing claims of election fraud. Gonzalez was likely the winner of Venezuela's 28 July presidential election, international observers and others hold, but Maduro claimed victory and forced his opponent into exile in Spain. Gonzalez met with US president Joe Biden at the White House today, as part of several international visits. Protesting is "a task for everyone, for the political leadership but also for all Venezuelans who believe in democracy", Gonzalez said when leaving the White House today. The US has not changed its sanctions on Venezuela, including restrictions on crude exports, in response to the election results. Biden did not indicate that the US sanctions regime would change following his meeting with Gonzalez today, based on the White House readout of the meeting. "Both leaders agreed there is nothing more essential to the success of democracy than respecting the will of the people," the White House said. President-elect Donald Trump has not specified what will change after he takes office on 20 January, but many of the restrictions he put in place during his first term remain. The Venezuelan opposition may be hoping that the incoming US administration's officials, which include long-time Venezuela hardliners such as secretary of state nominee Marco Rubio and designated White House national security adviser Mike Waltz, would advance a tougher policy toward Maduro. But it is equally possible that Trump's plans to deport millions of migrants from the US would lead to dealmaking between the White House and Maduro, who said he would accept Venezuelans returning home from the US. In Caracas, Maduro's administration has heavily increasing police presence on the streets this week ahead of the swearing-in ceremony. Police lined platforms on the Caracas subway and guarded entry points into the city, searching most passengers and cars, causing lengthy delays. Police and paramilitary groups known as colectivos also surrounded the presidential palace of Miraflores. The main thoroughfare Avenida Urdaneta has been closed to motor traffic. Maduro's planning swearing-in has also led to additional diplomatic falling outs, with Venezuela breaking diplomatic ties with Paraguay after its president held a call with Gonzalez on Sunday and recognized him as the legitimate Venezuelan president. Venezuela had already severed ties with about a dozen countries in the area for siding with Gonzalez. Neighboring Brazil and Colombia are among the few Latin American countries with ambassadors in Caracas. Both Brazil and Colombia have promised to send a representative, although not their presidents, to the ceremony, but the EU has said it will not recognize the event. Gonzalez will be arrested if he tries to return to Venezuela, defense minister Vladimir Padrino reiterated today. The Maduro government is offering a $100,000 reward for information leading to Gonzalez' arrest. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US 45V rules draw guarded industry, greens nods


06/01/25
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06/01/25

US 45V rules draw guarded industry, greens nods

Houston, 6 January (Argus) — Revised federal guidelines released last week for what will be billions of dollars worth of hydrogen production tax credits drew guarded approval from both industry and environmental groups. Energy companies and associated lobbying groups hailed greater flexibility for nuclear and natural gas producers to access subsidies of as much as $3/kg of hydrogen, while climate groups cautiously cheered the administration for upholding a so-called "three-pillars" model of regulations intended to ensure hydrogen production does not increase emissions. "This framework offers an opportunity for natural gas, when paired with carbon capture and storage, to compete more fairly in new markets," said the American Petroleum Institute. Katie Ellet, chief executive of ETCH, a decarbonization technology company which aims to produce hydrogen from natural gas, called the updated guidelines "a significant step forward" and hailed new standards that adopt life-cycle emission assessments for projects using natural gas. The updated guidelines also open more pathways for renewable natural gas (RNG) developers to access tax credits, which one lobbying group said could unlock thousands of potential projects. "The final rules address key issues...including removing the first productive use penalty, which effectively treated existing sources of RNG like conventional natural gas," said the American Biogas Council. There are currently 2,400 biogas projects in operation in the US compared to a potential 24,000, said the council. "These new rules will support increased production.". Electrolytic producers, which use nuclear or renewable power to split water into hydrogen, also responded positively to the changes. "We are pleased that the US Treasure Department changed course and that the final rule allows a significant portion of the existing merchant nuclear fleet to earn credits for hydrogen production," said power utility Constellation Energy chief executive Joe Dominguez in a statement. Constellation previously warned that it would be forced to cancel a proposed $900mn hydrogen plant in Illinois if the administration did not amend rules intended to prohibit new hydrogen projects from displacing other consumers of renewable power. A prior rule stipulating projects to draw power from energy assets built no more than 36 months in advance of the hydrogen start up effectively shut out nuclear producers from accessing the subsidies. Constellation says it is still reviewing how the new rules will impact its project at the LaSalle Clean Energy Center, which is a partner at the federally funded Midwest Alliance for Clean Hydrogen (MachH2) hub. Solid pillars Environmental groups gave subdued praise to the Biden administration's decision to largely leave in place restrictions pertaining to the additionality, temporality and regionality of new renewable-power based projects. "While the final rule includes several potentially concerning exemptions, it still broadly relies on the three pillars," said Sierra Club director of climate policy Patrick Drupp in a statement. Similarly, Earthjustice nodded towards the survival of the three pillars framework but noted the tweaks still included "several significant loopholes for dirty hydrogen producers to enjoy the benefits of this important climate program." The Union of Concerned Scientists noted that final 45V rules "firmly reject the most egregious" of the loopholes sought by industry players, but still leave room for some what they call heavily polluting hydrogen projects through ongoing questions of carbon accounting. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Newsom eyes budget response to Trump


06/01/25
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06/01/25

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Brazil's EV sales hit record high in 2024


06/01/25
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06/01/25

Brazil's EV sales hit record high in 2024

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