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Cop 27 unlikely to speed up maritime emissions cuts

  • Market: Emissions, Oil products
  • 14/09/22

The next UN Cop 27 climate conference in Sharm el-Sheikh, Egypt, is unlikely to speed up the International Maritime Organisation's (IMO) decisions on reducing greenhouse gas (GHG) emissions in the shipping industry, just as Cop 26 pressure failed to do so last year.

The IMO's present strategy targets a 50pc reduction in overall GHG emissions by 2050 compared with 2008 levels, and a 70pc reduction in CO2 emissions over the same timeframe. Member countries are currently working towards revising the strategy by the middle of 2023. The Marshall Islands, which with Liberia and Panama have the three largest ship registries globally, does not expect Cop 27 discussions to directly affect the work of the 79th Marine Environment Protection Committee meeting in December. Liberia's Maritime Authority marine environmental protection director Daniel Tarr says he hopes that the discussions at Cop 27 will push the IMO to act, although he also cautions that the most progress he sees happening at December's IMO meeting is a non-binding agreement on a set of more ambitious targets.

Around 10,000 vessels are registered in Liberia and the Marshall Islands, with the latter a major tanker fleet registry. Flag states have responsibility for implementation and enforcement of maritime laws, which means they have to ensure ships under their registries are compliant with the IMO strategy. In the first days of Cop 26 last year, the Marshall Islands led the declaration on zero emission shipping by 2050, with the US and Denmark, and the support of Danish container ship firm Maersk. Other initiatives born during Cop 26 added to pressure on the IMO to revise its emission strategy before 2023. These include the Clydebank declaration for green shipping corridors, which sought to establish at least six zero-emission maritime routes between two or more ports by 2025, and the First Movers Coalition.

If at first you don't succeed

Although Cop 26 brought about ambitious goals for the shipping sector and despite the pressure to do more, IMO member countries have so far failed to agree to speed up the revision process, let alone the setting of new emissions targets. The Marshall Islands, with Kiribati and Solomon Islands submitted a resolution for the 77th IMO environmental committee meeting, which followed Cop 26, to commit to zero GHG emissions in shipping by 2050, but it failed to gain support. And in June, IMO's 78th committee meeting faltered in its attempts to update its emission targets and decide on mid to long-term measures to reduce emissions. Divisions emerged between states over the impact of more ambitious targets, with some states refusing outright to countenance a total phase-out of emissions by 2050. Decisions at the IMO need to be taken unanimously.

But the UN climate conference and some of its initiatives are continuing to influence the IMO debate. A World Shipping Council paper presents three suggestions to IMO members ahead of the December meeting. One of these suggestions is to build on existing initiatives and develop an IMO "green corridors programme", which would draw on Cop 26's Clydebank declaration. Partnerships between Rotterdam and Singapore, as well as Los Angeles and Shanghai, Canadian Great Lake ports, and European Baltic ports have been announced following the 2021 declaration, although none of these has committed to the 2025 target. The World Shipping Council also proposed reducing the number of steps in the GHG fuel standard goals — a mid-term measure proposed by a group of European countries in March that seeks to establish a measure of GHG intensity in marine fuels — and using a well-to-wake lifecycle assessment for benchmarking emissions.

By James Marriott


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04/04/25

South Africa Natref to end bitumen production from Sep

South Africa Natref to end bitumen production from Sep

London, 4 April (Argus) — Bitumen production at Natref's 107,000 b/d Sasolburg refinery in South Africa will cease from September, ending all the country's output of the heavy oil product. Several South African bitumen market participants, including buyers from the refinery and suppliers of imported bitumen into the domestic and regional southern African markets, said officials from majority Natref shareholder Sasol had been informing customers of the planned move over the past week. Customers were told that final bitumen supply from stocks held at the refinery would be supplied to them into October, with all supplies ending thereafter. Market participants said the Natref plan is linked to a wider move of switching to sweeter crudes aimed at maximising output of light and middle distillates, which would also hit output of heavy products other than bitumen, notably high-sulphur fuel oil (HSFO). Officials at Sasol, which owns 63.3pc of Natref alongside UK energy firm Prax with 36.4pc, have so far not responded to Argus' requests for comment. South African market participant said the move had been under consideration for some time, even before Prax agreed to buy TotalEnergies' Natref stake in December 2023. South Africa turned from a major net exporter of bitumen, mainly to its southern African neighbours, to becoming increasingly dependent on imports after several of the country's refineries were either shut down or ended their bitumen production since 2020. South African cargo imports in bitumen tankers surged to nearly 200,000t in 2024, according to Vortexa data, mostly into Durban and some into Cape Town. Mediterranean supplies, mainly from Greece and Turkey, made up just over half of these, with Rubis and Continental supplying most. Mideast Gulf storage points, along with Bahraini state-owned Bapco's refinery and export terminal at Sitra, supplied around a third, while emerging exporter Pakistan shipped 8pc. According to a South African bitumen supplier, the Natref refinery's bitumen production fell last year to 45,000-50,000t — from an Argus estimate of 140,000t in 2023 — because of numerous plant halts and interruptions. The market effect of Natref ending its bitumen output will therefore be limited, with another leading South African participant saying truck flows from the inland refinery had become increasingly unreliable. The halt will nevertheless trigger more South African import requirements that are anyway likely to rise sharply in the coming years because of much-enhanced government infrastructure budgets. The Natref refinery was forced to stop all production for about two months following a fire in early January this year. French construction and bitumen supply firm Colas recently became the latest company to take a South African import asset position, agreeing a long-term deal with local firm FFS Refiners to operate four of five new bitumen tanks at an existing Durban facility once an FFS expansion there is completed, likely in the second half of this year. By Keyvan Hedvat and Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Funding cuts could delay US river lock renovations


03/04/25
News
03/04/25

Funding cuts could delay US river lock renovations

Houston, 3 April (Argus) — The US Army Corps of Engineers (Corps) will have to choose between various lock reconstruction and waterway projects for its annual construction plan after its funding was cut earlier this year. Last year Congress allowed the Corps to use $800mn from unspent infrastructure funds for other waterways projects. But when Congress passed a continuing resolutions for this year's budget they effectively removed that $800mn from what was a $2.6bn annual budget for lock reconstruction and waterways projects. This means a construction plan that must be sent to Congress by 14 May can only include $1.8bn in spending. No specific projects were allocated funding by Congress, allowing the Corps the final say on what projects it pursues under the new budget. River industry trade group Waterways Council said its top priority is for the Corps to provide a combined $205mn for work at the Montgomery lock in Pennsylvania on the Ohio River and Chickamauga lock in Tennesee on the Tennessee River since they are the nearest to completion and could become more expensive if further delayed. There are seven active navigation construction projects expected to take precedent, including the following: the Chickamauga and Kentucky Locks on the Tennessee River; Locks 2-4 on the Monongahela River; the Three Rivers project on the Arkansas River; the LaGrange Lock and Lock 25 on the Illinois River; and the Montgomery Lock on the Ohio River. There are three other locks in Texas, Pennsylvania and Illinois that are in the active design phase (see map) . By Meghan Yoyotte Corps active construction projects 2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Mexico, Canada sidestep latest Trump tariffs: Update


03/04/25
News
03/04/25

Mexico, Canada sidestep latest Trump tariffs: Update

Adds Canada reaction Mexico City, 3 April (Argus) — US president Donald Trump's sweeping tariff measures largely spared Mexico and Canada from additional penalties, as the US-Mexico-Canada free trade agreement (USMCA) will continue to exempt most commerce, including Mexico's energy exports. According to Trump's tariff announcement on Wednesday , all foreign imports into the US will be subject to a minimum 10pc tax starting on 5 April, with levels as high as 34pc for China and 20pc for the EU. Mexico and Canada are the US' closest trading partners and have seen tariffs imposed and then postponed several times this year, but remained mostly exempt from Trump's "reciprocal" tariffs. Energy and "certain minerals that are not available in the US" imported from all other countries also will be exempt from the tariffs. Trump also did not reimpose punitive tariffs on energy and other imports from Canada and Mexico. All products covered by the USMCA, which include energy commodities, are exempt as well. Yet steel and aluminum, cars, trucks and auto parts from Mexico and Canada remain subject to separate tariffs. Steel and aluminum imports are subject to 25pc, in effect since 12 March. The 25pc tariff on all imported cars and trucks will go into effect on Thursday, whereas a 25pc tax on auto parts will go into effect on 3 May. Mexico's president Claudia Sheinbaum this morning emphasized the "good relationship" and "mutual respect" between Mexico and the US, which she said was key to Trump's decision to prioritize the USMCA over potential further tariffs on Mexican imports. "So far, we have managed to reach a relatively more privileged position when it comes to these tariffs," Sheinbaum said. "Many of our industries are now exempt from tariffs. We aim to reach a better position regarding steel, aluminum and auto parts exports, too." The Mexican peso strengthened by 1.5pc against the US dollar in the wake of the tariff announcement, to Ps19.96/$1 by late morning on Thursday from Ps20.25/$1 on Wednesday. Mexico has not placed any tariffs on imports from the US, which may have eliminated the need for the US to reciprocate with tariffs. "In contrast to what will apply to 185 global economies, Mexico remains exempt from reciprocal tariffs," Mexico's economy minister Marcelo Ebrard said. Mexico exported 500,000 b/d of crude to the US last year, making the US by far the most important export market for the nation's commodity. Mexico also imports the majority of its motor fuels and LPG from the US. If US won't lead, Canada will: Carney To the north, Canada's prime minister says the US' latest trade actions will "rupture" the global economy. "The global economy is fundamentally different today than it was yesterday," said prime minister Mark Carney on Thursday while announcing retaliatory tariffs on auto imports from the US. Canada is matching the US with 25pc tariffs on all vehicles imported from the US that are not compliant with the USMCA, referred to as CUSMA in Canada. But unlike the US tariffs, which took effect Thursday, Canada's will not include auto parts. Automaker Stellantis has informed Unifor Local 444 that it is shutting down the Windsor Assembly Plant in Ontario for two weeks starting on 7 April, with the primary driver being Trump's tariffs. The closure will affect 3,600 workers. Trump on 2 April unveiled a chart of dozens of countries the US is targeting with new tariffs, but that lengthy list may also represent opportunity for Canada and Mexico, who have already been dealing with US trade action. "The world is waking up today to a reality that Canada has been living with for months," Canadian Chamber of Commerce president Candace Laing said, a reality which Carney views as an opportunity for his country. "Canada is ready to take a leadership role in building a coalition of like-minded countries who share our values," said Carney. "If the United States no longer wants to lead, Canada will." By Cas Biekmann and Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump to 'stand firm' on tariffs as markets crash


03/04/25
News
03/04/25

Trump to 'stand firm' on tariffs as markets crash

Washington, 3 April (Argus) — President Donald Trump does not intend to back down from his plan for sweeping import tariffs that have already caused a sell-off in global equity markets and some commodities, administration officials say. The tariffs — which will start at 10pc for most imports on 5 April before steeper country-specific tariffs take effect on 9 April, with exceptions for some energy and mineral imports — have caused key stock indexes to drop by as much as 5pc, with even larger declines in crude futures, as investors brace for lower growth and a higher chance of a recession. Trump earlier today defended the tariffs, as he prepared to leave the White House for a dinner tonight at a golf tournament at one of his resorts in Florida. "THE OPERATION IS OVER! THE PATIENT LIVED, AND IS HEALING," Trump wrote in a social media post before major stock markets opened. Trump's cabinet has downplayed the short-term price effect of the tariffs, which they say will boost economic growth in the US and cause a resurgence in domestic manufacturing. US commerce secretary Howard Lutnick said he does not think there is "any chance" that Trump will rescind the tariffs, and said Trump will only begin to work on new trade deals once a country has "really, really changed their ways" on trade practices. "Trump is going to stand firm because he is reordering global trade," Lutnick said today in an interview with CNN. "Make no mistake about it, America has been exploited, and he is done allowing America to be exploited." Other administration officials have suggested a greater potential for lower tariffs in the near-term. US treasury secretary Scott Bessent has encouraged world leaders to "take a deep breath" and not to "panic" because the tariff rates that Trump announced were a "ceiling" that might come down, so long as there was no retaliation. "Don't immediately retaliate, let's see where this goes, because if you retaliate, that's how we get escalation," Bessent said on 2 April during interview on Fox News. The tariffs have caused bipartisan backlash on Capitol Hill, but so far legislative action has been symbolic and unlikely to become law. The US Senate, in a bipartisan vote on 2 April, approved a joint resolution that would end the justification Trump has used to put tariffs on Canada. US senators Chuck Grassley (R-Iowa) and Maria Cantwell (D-Washington) introduced a bill today to eliminate most new presidential tariffs after 60 days without approval by the US Congress. Democrats say the tariffs will force consumers to pay far more on everyday goods, with revenue offsetting Republican plans to provide more than $5 trillion in tax cuts. "Donald Trump is using tariffs in the dumbest way imaginable. In fact, Donald Trump slapped tariffs on penguins and not on Putin," US Senate minority leader Chuck Schumer (D-New York) said today, in reference to Trump's decision to put a 10pc tariff on an island populated only with penguins. Trump has claimed his country-specific tariffs are "reciprocal" even though they have no relation to the tariffs each country charges on US imports. Instead, Trump's tariffs were calculated based on a universal equation that is set at half of the country's trade deficit with the US, divided by the country's imports from the US, with a minimum tariff rate of 10pc. Major US trading partners are preparing for retaliatory tariffs. Canada's prime minister Mark Carney said he would respond to Trump's tariffs on automobiles, which took effect today, by "matching the US approach" and imposing a 25pc tariff on auto imports that do not comply with the US-Mexico-Canada free trade agreement. China said it was preparing unspecified countermeasures to US tariffs that would be set at 54pc. Trump's cabinet today dismissed the market reaction to the tariffs. Stock markets are going through a "short-term adjustment" but the tariffs will ultimately result in more growth and additional investments, US Small Business Administration administrator Kelly Loeffler said today in an interview on Fox News "The gravy train is over for the globalist elites," said Loeffler, who previously was a top executive at US exchange operator ICE. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Crude, equity markets tumble on US tariffs: Update


03/04/25
News
03/04/25

Crude, equity markets tumble on US tariffs: Update

Updates prices, adds information on Opec decision. Houston, 3 April (Argus) — WTI and Brent crude futures were down by about 7pc midday Thursday as markets weighed the potential for large scale economic disruption from US President Donald Trump sweeping tariffs for a range of imports. Equity markets also fell sharply with the Nasdaq down by more than 5pc and the S&P 500 down by about 4pc as of 12:30pm ET. The US dollar was also falling, down by nearly 2pc to its lowest level since October. The front-month Nymex May WTI contract was trading at $66.65/bl, down by more than $5/bl as of 12:30pm ET. ICE Brent was trading at $69.98/bl, down by about $5/bl. All foreign imports into the US will be subject to a minimum 10pc tax with levels as high as 34pc for China under Trump's sweeping tariff measure. Trump has exempted many energy and mineral products from the new tariffs, and much of the trade with Canada and Mexico appears to be remaining governed by the US Mexico Canada trade agreement (USMCA). Oxford Economics said Thursday it is considering revising downward its 2025 global GDP growth estimate from 2.6pc to 2pc and 2026 growth may drop below 2pc. This is under the assumption that the Trump tariff's stick and are not rapidly negotiated to lower tariff levels. Latin American and Asian economies with exports to US are the most exposed to the GDP downgrades, Oxford said. Oxford also said that global recession will likely be avoided, despite the strains of the tariffs. The drop in crude prices also came after a core group of eight Opec+ crude producers in a surprise move sped up plans to gradually unwind some 2.2mn b/d of production cuts by upping output by 411,000 b/d in May. "In view of the continuing healthy market fundamentals and the positive market outlook… the eight participating countries will implement a production adjustment of 411,000 b/d equivalent to three monthly increments, in May 2025," said the group, which includes Saudi Arabia, Russia, UAE, Kuwait, Iraq, Algeria, Oman and Kazakhstan. The decision to increase output by 411,000 b/d in May will kick in with the start of the summer season in the northern hemisphere when oil demand typically picks up. Meanwhile, the EU is preparing countermeasures against the new US tariffs. European Commission president Ursula von der Leyen said the bloc is finalising a first package of countermeasures to previously-announced US tariffs on steel, preparing for further countermeasures and monitoring for any indirect effects US tariffs could have. China also promised to take unspecified countermeasures against the new US import tariffs, which will raise duties on its shipments to the country to over 50pc. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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