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

Market: Emissions
15/11/24

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

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

15/11/24

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.

Find out more

News

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.

News

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.

News

Cop: Only 1pc of UN-reported methane leaks acted on

15/11/24

News

15/11/24

Cop: Only 1pc of UN-reported methane leaks acted on

London, 15 November (Argus) — Governments and companies notified of methane leaks by the UN-run International Methane Emissions Observatory (IMEO) only reported back on actions taken to resolve the leaks in 1pc of cases this year, the organisation said today at the UN Cop 29 climate summit in Baku, Azerbaijan. IMEO has since 2023 run the Methane Alert Response System (MARS), a service using satellite data to warn states and companies about methane leaks, allowing them to take action to mitigate. Methane is deemed responsible for roughly one third of global temperature increase since the industrial revolution, and efforts to reduce emissions of the gas have gathered pace in recent years as measurement and reporting infrastructure has improved. But the response by governments and operators to MARS notifications has hardly kept pace with the system's capabilities, IMEO said. IMEO made 1,225 notifications of detected methane plumes to governments and companies in the first nine months of 2024. Of these notifications only 43pc were acknowledged by the recipients. Recipients responded with information about the source of the emissions and any mitigation action taken in only 15 cases, or roughly 1pc. Turkmenistan received the most notifications, at 388, or 32pc of the total. The US, Iran and Algeria followed, each receiving more than 100 notifications, with the four top countries accounting for almost two-thirds of notifications. But there have been some notable success stories, including the halting of a leak at Algeria's Hassi Messaoud oilfield, which is estimated to have been emitting 27,500t/yr of methane since at least 1999, IMEO said. OGMP 2.0 signups slow The number of new firms joining the UN's Oil and Gas Methane Partnership (OGMP 2.0) programme fell to 20 this year, below the 35 new members added last year. The voluntary initiative provides a framework and support for oil and gas companies to measure, report and reduce their methane emissions. It now counts 140 member companies, who account for 42pc of global oil and gas production. Requirements on participants to improve measurements rachet up over time, and as the scheme has entered its third year, many participants have had to demonstrate for the first time detailed source-level measurements in order to maintain their "gold standard" quality badge. New data suggest that a gap observed between reported emissions of OGMP member firms and atmospheric methane concentrations may be a result of a mix of underreporting among OGMP members and higher methane intensity at non-OGMP firms. Atmospheric observations suggest global methane emissions from hydrocarbons stand at 80mn-140mn t/yr. But OGMP members accounting for 28pc of global production reported emissions of only 1.1mn t in 2023. Underreporting may occur because firms are at the initial lower levels of the programme, and report only less-accurate estimates based on emissions factors, IMEO said. And data from many major assets are missing, while other hydrocarbon infrastructure at which leaks occur is operated by non-OGMP member firms. But OGMP firms may indeed have lower methane intensity than non-OGMP firms, both because they have a higher proportion of far-offshore assets, fewer small wellpads which are prone to leak more, and because having decided to take part in the programme they are more conscientious. The increasing requirements on participants to improve their measurements will likely further clarify the reasons behind this gap in the coming years, IMEO said. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Cop: German opposition pushes for Article 6

14/11/24

News

14/11/24

Cop: German opposition pushes for Article 6

Berlin, 14 November (Argus) — Germany's main opposition parties have welcomed the progress achieved on Article 6 of the Paris Agreement in at the UN Cop 29 climate summit in Baku, Azerbaijan. They have called on Germany and the EU to make better use of the instrument to allow for more cost-efficient climate action. Germany's dominant opposition party, the right-of-centre CDU/CSU, on 14 November commended the framework under Article 6 as an efficient way of reducing greenhouse gas (GHG) emissions. Article 6 of the Paris accord aims to help set rules on global carbon trade. The Article 6 mechanism allows for reductions to happen where they are quickest, cheapest and easiest to be carried out, the CDU head of the working group on climate action and energy, Andreas Jung, said in a debate in the lower house of parliament, the Bundestag. The deputy head of the FDP faction Lukas Koehler, also speaking in the Bundestag on 14 November, called on Germany and the EU to "finally" integrate the Article 6 in their climate action plans. Koehler argued that if for instance Germany's progress in emissions reduction should turn out to be too slow, the country could temporarily shift its efforts — and the associated finance — to where more rapid mitigation might be achieved, such as Brazil. The EU, of which Germany is a member state, will not make use of Article 6 credits, at least until 2030, to reach its so-called nationally determined contribution (NDC) – its climate action pledge — under the Paris climate accord. The EU has been seeing progress on ongoing Article 6 negotiations at Cop 29, the European Commission's principal advisor for international aspects of EU climate policy Jacob Werksman said today, "mostly because parties are now agreeing with the EU and others that were concerned about the transparency and accountability of the bilateral markets that operate under Article 6.2". Werksman believes there is enough momentum for negotiations to be concluded next week, noting that the atmosphere has "improved" compared with previous negotiations, which echoes the sentiment expressed by a number of negotiators earlier this week . Werksman pointed in particular to the US now agreeing with others and helping to broker compromises. Koehler also warned German government representatives in Baku to refrain from "expensive" pledges which may strain the country's budget. Developed countries agreed in 2009 to deliver $100bn/yr in climate finance to developing nations, and Cop 29 is focused on the next iteration of this — the new collective quantified goal (NCQG) . In a statement, Germany — represented by Scholz despite his absence at the Cop — and other G7 members like Canada, France, or the Netherlands agreed that "developed countries must continue to take the lead and live up to existing finance commitments". Germany faces early elections as the government lost its majority last week following the sacking, by chancellor Olaf Scholz of the Social Democrat SPD, of finance minister Christian Lindner of the pro-business FDP party and the FDP's subsequent withdrawal from the ruling coalition. Polls suggest that the CDU/CSU group will easily win the next federal elections which are scheduled to take place on 23 February. The FDP's persistent refusal to allow Germany to take on more debt to enable more public funding, including of clean technologies, was the main reason for Lindner's sacking. By Chloe Jardine and Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more