Denmark pledges DKr150mn to Brazil's Amazon fund

Market: Emissions
29/11/24

Denmark will donate 150mn Danish kroner ($21.3mn) to Brazil's Amazon fund, adding the Nordic country to a growing list of nations supporting the South American country's efforts to preserve the Amazon forest.

The Amazon fund issues grants to projects that prevent, monitor and combat deforestation while promoting conservation and sustainable development in the Amazon. The fund was created in 2008 and is managed by Brazil's Bndes development bank. It has R4.5bn ($750mn) under management and has supported 114 projects to date.

Norway is the fund's largest donor, having pledged R3.5bn, followed by German development bank KfW with R388mn and the US with R291mn. Other donors include the UK, Switzerland and Japan.

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

29/11/24

Australia could issue over 9mn safeguard carbon units

Sydney, 29 November (Argus) — Australia's Clean Energy Regulator (CER) could issue over 9mn safeguard mechanism credits (SMCs) to facilities that reported emissions below their baselines for July 2023-June 2024. This was 4-6 times higher than previously estimated, the Climate Change Authority (CCA) said in its 2024 Annual Progress Report released late on 28 November. A total of 60 out of 215 facilities covered by the safeguard mechanism reported scope 1 greenhouse gas (GHG) emissions below their baselines and could be eligible to apply for a total estimated 9.2mn SMCs, the CCA said. Australia's Department of Climate Change, Energy, the Environment and Water (DCCEEW) late last year estimated SMC issuances would start at just 1.4mn units in 2023-24, while the Clean Energy Regulator (CER) indicated issuances would be "relatively modest initially" in September. The estimates are based on preliminary 2023-24 safeguard data provided by the CER, with the CCA noting the final number of SMCs issued could be affected by possible baseline variations, because of changes in methods used to calculate emissions. The use of flexibility mechanisms, including trade-exposed baseline adjusted (Teba) arrangements and multi-year monitoring periods, will also affect facility baselines and affect the final number of SMCs generated, it added. "An important ongoing watchpoint will be the extent to which safeguard facilities rely on Australian Carbon Credit Units (ACCUs) and SMCs to meet their declining baselines, as opposed to reducing their onsite emissions," the CCA said. Preliminary data showed 153 of the 215 covered facilities — or 71pc of the total — had emissions higher than their baselines in 2023-24, by an estimated aggregate amount of 10.7mn t of CO2e. This would be the maximum exceeded volume, the CCA said, although the exact number will be determined once any use of the flexibility mechanisms is finalised by the CER. This will affect the number of ACCUs or SMCs that facilities that went above their baselines will be required to surrender by the 31 March 2025 deadline under the reformed safeguard mechanism. A total of 219 facilities were under the mechanism in 2022-23, with reported emissions of 138.7mn t of CO2e and ACCU retirements rising to 1.22mn units from 739,000 the previous year. The preliminary data for 2023-24 indicated covered emissions of 135.8mn t of CO2e, down by 2.9mn t of CO2e from the previous year, the CCA said. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more

News

German opposition insists on carbon pricing role

28/11/24

News

28/11/24

German opposition insists on carbon pricing role

Berlin, 28 November (Argus) — Germany's dominant opposition party group CDU/CSU, which is almost certain to lead the next federal government following early elections on 23 February, has warned against "ideological" energy and climate policy, and pledged it will give a stronger role to carbon pricing. "Climate policy must be accepted," deputy head of the CDU/CSU parliamentary group Jens Spahn told delegates at an industry conference this week, after not having been accepted "in the last two years". The CDU/CSU will not support the outgoing government, which lost its parliamentary majority earlier this month, on the proposed power plant bill currently under consultation, Spahn said. He cited the bill's "dirigiste" slant, reflected for instance in the fixed time frames for switching to hydrogen. The CDU/CSU will also roll back the buildings energy act passed last year, with a focus on putting carbon pricing at the centre of the law and not "enforcing ideological choices", Spahn said. The current buildings energy act supports the shift to a heating sector predominantly based on heat pumps and decarbonised heat grids. But a focus on reducing CO2 as quickly as possible, rather than aiming for "the perfect solution", would make easier solutions such as combining heating oil with bio-oil or gas with hydrogen possible, Spahn said. Spahn underlined that heat pump sales had been rising for years before the buildings energy act came into force following a months-long acrimonious debate, since when they have plummeted. And he warned against keeping industries in Germany that "permanently depend on subsidies to function". It should be acceptable for Germany to meet its target to become carbon neutral in 2045 a few years later, Spahn added. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Cop 29 climate finance deal settled but work remains

28/11/24

News

28/11/24

Cop 29 climate finance deal settled but work remains

London, 28 November (Argus) — The UN Cop 29 climate summit technically achieved its aim of settling the details of a new climate finance goal, but it represents a huge compromise for poorer developing countries and the finance may take some time to reach them. Almost 200 countries agreed — although this was later disputed by some — on a goal that will see developed countries "take the lead" on providing "at least" $300bn/yr in climate finance to developing nations by 2035, to support the latter to decarbonise and implement their energy transitions. It is the new iteration of the current climate finance goal, under which developed countries agreed to provide $100bn/yr to developing nations over 2020-25. The new goal trebles the previous target, but falls short of what developing countries were pushing in Baku — $1.3 trillion/yr, including $440bn-600bn/yr in public finance mostly in grants and concessional finance. Other key aspects of the goal — the contributor base and the structure — remain largely unchanged. It only "acknowledges the need for public and grant-based resources and highly concessional finance", stopping short of calling for grants rather than loans. Developing nations have long emphasised the need for grants and concessional loans, to avoid increasing their debt burdens. The deal does not take inflation into account, and does not define climate finance. Civil society and non-governmental organisations largely dismissed it as weak. Several developing nations and groups have decried the amount, saying it does not meet the minimum requirement to support their energy transition and adapt to the effect of climate change, and that it could further hinder their economic development. For the least developed countries and small island developing states, in particular, the pill is hard to swallow. The goal does not include the sub-targets that they had called for . Some developed parties said that these nations needed more support. But specific targets proved a step too far, with a delegate from Somalia telling Argus that "rich" developing countries did not support such carve-outs. Some ground may have shifted slightly on the contributor base — also a long-running bone of contention. UN climate body the UNFCCC works from a 1992 list of developed and developing countries, but the former group argues that economic circumstances have changed for many countries since then. The Cop 29 finance text "encourages developing country parties to make contributions… on a voluntary basis", much like the Paris Agreement. But it clarifies that any provision of finance would not change a country's status. There was a notable focus during Cop 29 on China's climate finance contributions — which is likely to have supported developed countries' argument for a wider donor base. From billions to trillions The Cop 29 finance text acknowledged the need for trillions of dollars, calling on "all actors… to enable the scaling up of financing to developing country parties for climate action from all public and private sources to at least $1.3 trillion per year by 2035". There was also reference to a "roadmap" for reaching that level, but the wording avoids calling for finance from any particular source. EU climate commissioner Wopke Hoekstra said that, with the help of the multilateral development banks (MDBs) and with the deal's structure, the bloc is confident that $1.3 trillion/yr of climate finance could be reached. But he also pointed to a challenging global context. "This is a significant leap forward in exceptionally difficult geopolitical times," Hoekstra said. The EU is the largest provider of bilateral climate finance, contributing €28.6bn ($30.1bn) in 2023. In the end a "bad" deal proved better than no deal for the least developed and most vulnerable countries. The election of Donald Trump as president of the US will add a new layer of uncertainty to the climate talks next year, and the geopolitical context shows no sign of easing. But some developing countries worry that the finance may take a long time to reach them, if at all. Developed countries have a contested track record for the $100bn/yr goal, which they only met for the first time in 2022 . The new deal has a 10-year timeframe, for the $300bn/yr from developed countries, and for the larger $1.3 trillion/yr aspiration. How much money will flow to developing nations in 2025-2035 is anyone's guess, but work on improving access to funds will be crucial in the meantime. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Sweden extends EU ETS 2 application

28/11/24

News

28/11/24

Sweden extends EU ETS 2 application

London, 28 November (Argus) — The European Commission has approved the application of the new emissions trading system for road transport and buildings (EU ETS 2) to additional sectors in Sweden. Sweden will unilaterally apply the new system to emissions from freight and passenger railway transport, non-commercial leisure boats, airport and harbour off-road machinery, and fuel combustion in agriculture, forestry and fishing. The extension means additional carbon allowances will be issued to the country in 2027, on the basis of emissions from the activities listed calculated at 1.68mn t of CO2 equivalent. Sweden must monitor and report emissions from the additional sectors from 1 January. The EU ETS 2 is due to launch fully in 2027, and will apply in its basic form to fuel combustion in buildings, road transport and small industry not covered by the existing EU ETS, in all the bloc's member states plus Norway, Iceland and Liechtenstein. The commission approved similar unilateral extensions of the system's scope in the Netherlands and Austria in September. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Australia on track for 2030 GHG emissions target

27/11/24

News

27/11/24

Australia on track for 2030 GHG emissions target

Sydney, 27 November (Argus) — Australia is on track to reduce greenhouse gas (GHG) emissions by 42.6pc by 2030 from 2005 levels, nearly within the country's 43pc target, climate change and energy minister Chris Bowen announced today. The forecast is based on the baseline scenario from the Department of Climate Change, Energy, the Environment and Water (DCCEEW)'s emissions projections 2024 report, which will be released on 28 November, according to Bowen. It compares to a 37pc reduction estimated in the 2023 report under the baseline scenario and is slightly above the previous report's 42pc projection under a scenario "with additional measures", as those policies have now been incorporated into the baseline assumptions. The inaugural emissions projections report, published at the end of 2022 , showed forecast reductions of 32pc in the baseline scenario and 40pc in the additional measures scenario. The main policies incorporated are the expanded Capacity Investment Scheme (CIS) and the fuel efficiency standards for new passenger and light commercial vehicles, Bowen said. Under the CIS, Australia will support 32GW of new capacity consisting of 23GW of renewable capacity such as solar, wind and hydro, as well as 9GW of dispatchable capacity such as pumped hydro and grid-scale batteries. Tenders will run every six months until 2026-27 and winners will need to start operating their assets by 2030, in time to help the Labor government meet its target of sourcing 82pc of electricity from renewable sources by 2030. Bowen last month announced tender volumes would be accelerated on the back of strong interest in the initial 6GW tender in May. NEM review The government separately announced the start of a review of the National Electricity Market (NEM) wholesale market settings, which will need to be changed following the conclusion of the CIS tenders in 2027 and as Australia transitions to more renewables from its aging coal-fired plants. The tenders will give up to 15 years of support, but new settings will be needed to promote investment in firmed renewable generation and storage capacity into the 2030s and beyond, especially as the Renewable Energy Target scheme will come to an end on 31 December 2030 . An expert independent panel will carry out widespread consultation and make final recommendations to energy and climate ministers in late 2025. The panel will need to consider the importance of decarbonising Australia's electricity system to achieve the 43pc emissions reduction target by 2030 and net zero emissions by 2050, according to the government. But the panel "will not consider" options that involve implementation of carbon trading schemes or carbon markets, or that entail governments supporting new fossil fuel generation, it added. The federal government will need to co-ordinate and introduce a "clear and enduring" carbon signal in the energy sector to adapt the 25-year-old NEM to a "post-coal era" , domestic think-tank Grattan Institute said earlier this year. By Juan Weik 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