Australia joins global pledge to cut methane emissions
The Australian government has signed the global methane pledge to cut its methane levels by 30pc by 2030 from 2020 levels, which will mean the country's significant agriculture and gas sectors will have to step up efforts to cut the potent greenhouse gas (GHG) emissions gas.
The ruling Labor government indicated in June that the nation would join more than 120 countries on tackling methane. Methane has a greater global warming potential that is 86 times higher than CO2 when averaged over 20 years and 28 times higher when averaged over 100 years.
"By joining the pledge, Australia will join the rest of the world's major agricultural commodity exporters including the US, Brazil, and Indonesia in identifying opportunities to reduce emissions in this hard-to-abate sector," Australian climate change and energy minister Chris Bowen said.
The Australian government will partner with industry to decarbonise the economy and pursue emissions reduction initiatives across energy and waste sectors including capturing waste methane to generate electricity, Bowen said.
Australian government investment in lowering GHG emissions will include up to A$3bn ($1.91bn) from the A$15bn National Reconstruction Fund to support investment in low emissions technologies and component manufacturing and agricultural methane reduction, the minister said.
Canberra will provide a further A$5mn in funding for the second stage of the methane emissions reduction in livestock (Meril) programme to develop technologies to deliver low emission feed supplements to grazing animals and determine their technical viability and commercial potential, Bowen said.
The pledge does not require Australia to focus solely on agriculture, or reduce agricultural production or livestock numbers, the minister said. The former conservative coalition government would not sign the methane pledge when it was in government up until it lost the national election in May.
"As a result of signing the pledge, the Australian government will not legislate or introduce taxes or levies to reduce livestock emissions," Bowen said.
Around 26pc of Australia's greenhouse gas (GHG) emissions in 2021 were from methane emissions, according to the latest GHG inventory data. Agricultural GHG emissions represents about 13pc of Australia's total emissions, while 42pc of the sector's emissions are from methane.
Most of this is the methane produced by cattle and other livestock through the fermentation of plants in their stomachs. Australia's expansion of LNG exports over the past decade to around 80mn t/yr have also seen an increased contribution to GHGs coming from methane emissions in the upstream sector.
The Labor government has already deepened its GHG emissions reduction target to 43pc by 2030 from 2005 levels compared with the 26-28pc cut pledged by the previous administration.
"For agriculture the pledge will reinforce our demonstrated commitment to sustainability and ongoing access key markets as an export orientated sector," National Farmers Federation (NFF) president Fiona Simon said.
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Mexico’s Queretaro state readies carbon offset program
Mexico’s Queretaro state readies carbon offset program
Mexico City, 15 August (Argus) — Mexico's central Queretaro state said it will launch a new compensation mechanism to provide a structured framework for carbon reduction projects. The joint initiative between the state government and MexiCO2, a subsidiary of Mexico's stock exchange, "aims to support all sectors in reducing emissions through frameworks tailored to Mexico's needs and at the lowest possible cost," said Eduardo Piquero, chief executive of MexiCO2 during the Mexico Carbon Forum in Leon, Guanajuato. The mechanism will also track emission reductions used for state-level carbon tax payments, voluntary offsets and other purposes, contributing to Mexico's commitments under the Paris Agreement. The compensation mechanism registers and certifies emission reduction projects within the country, integrating standards and eligibility criteria designed to ensure the initiative achieve real, verifiable, and transparent benefits, Ricardo Torres, Queretaro's deputy environment ministry told Argus on the sidelines of the event. Queretaro leads Mexico in carbon reduction efforts, as it is the only state currently allowing a combination of carbon taxes with utilization of carbon offsets to meet state-level carbon tax compliance obligations. The compensation mechanism is expected to launch in 2025, with plans by MexiCO2 to expand it to other states, including Guanajuato and Tamaulipas, Ricardo Torres, Piquero told Argus . By Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Q&A: 'Business-as-usual' on climate finance for the EU
Q&A: 'Business-as-usual' on climate finance for the EU
Brussels, 15 August (Argus) — The EU's position on climate targets is lacking ambition, while the block is following a business-as-usual approach to climate finance, non-governmental Climate Action Network (CAN) Europe head of climate Sven Harmeling says. But he still sees potential for progress at the UN Cop 29 climate summit in Baku from 11-22 November. How are the EU's negotiation positions shaping up for UN climate talks? EU conclusions on climate finance are still quite vague. While this gives EU negotiators some room for maneuver, it also fails to send a clear signal that the bloc is ready to step up on financial commitments and move subsidies away from fossil fuels. This remains a key area that needs to be addressed. The draft suggests that the EU is essentially following a business-as-usual approach, aiming for the $100 billion goal and looking to get a bit more from the private sector and other countries. However, this falls short of what is needed. The real requirement is more in the range of trillions. That will be a challenge at Cop 29. And how positive is the EU's related draft negotiating mandate for Cop 29? There are some promising elements in the draft, such as the emphasis on transitioning away from fossil fuels and the expectation for investors to align with the new nationally determined contributions (NDCs) that countries must submit next year. There is also mention of finance from the private sector. However, support for developing countries in their transition is one of the weaker points. Many elements are familiar — this is typical of the Cop process where progress builds on previous agreements — and the agreements at Cop 27 and Cop 28 around moving away from fossil fuels are broadly steps in the right direction. Now, it is crucial for Cop 29 to push further, with more countries ready to move away from fossil fuels. Aside from the lack of detail on 2040 emission cuts, what other points are lacking in the EU's draft COP position? One significant issue is the lack of ambition in the EU's targets, particularly the commitment to a 55pc reduction in greenhouse gas (GHG) emissions compared to 1990 levels by 2030. Many scientific analyses suggest that this is insufficient for the EU's fair share to keep the rise in average global temperatures to the 1.5°C limit, compared to pre-industrial levels. The target is not up for discussion. That is a point of criticism for us. We are also advocating for climate neutrality by 2040 and this target is not explicitly stated in the draft. Are you concerned about a backward shift in the EU on international climate action after the elections, especially with Hungary now holding the presidency? There has been no significant backward shift in the EU's climate policies. It's more about progressing to the next level. The Green Deal will largely remain intact, although there will be tweaks, which is necessary because every law needs to be assessed for its effectiveness and potential improvements. We will also see more detailed plans on how to advance clean and green industries with clear objectives. At this stage, I would say the EU's draft Cop negotiation mandate is not worse than previous mandates for past summits. And the EU presidency's role, in principle, is to moderate the process and gather views from member states. Cop decisions are not typically where tough domestic decisions are made. For instance, the draft negotiation mandate being prepared for EU climate ministers says very little about the 2040 emissions reduction target currently on the EU agenda. How optimistic are you about Cop 29 reaching strong conclusions? There is potential to make progress, particularly in furthering the transition away from fossil fuels and encouraging more ambitious NDCs from countries. However, there are also significant concerns, particularly regarding the insufficient provision of finance and the slow phase-out of fossil fuels in both developed and developing countries. The new finance goal currently under discussion and to be agreed at the summit is one of the most critical deliverables for Cop 29, and we have yet to see if the EU or the US is truly prepared to shift gears on this front. How beneficial is holding another Cop in a fossil fuel-producing country like Azerbaijan? It's not ideal for the UN Framework Convention on Climate Change (UNFCCC) process to have a fossil fuel-based economy hosting another Cop, especially one that has not previously played a significant role in the UNFCCC. Azerbaijan's human rights situation is also a concern. Civil society plays a crucial role in national climate debates as a positive force. This role might be compromised in a country where freedoms are restricted. However, I don't want to overstate the importance of the host country on the overall outcomes of a Cop. Ultimately, the results depend more on the will of the most powerful countries than on the presidency. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s JAPC to extend Tokai Daini reactor safety work
Japan’s JAPC to extend Tokai Daini reactor safety work
Tokyo, 15 August (Argus) — Japanese nuclear power operator Japan Atomic Power (JAPC) is likely to face a delay in completion of safety reinforcement work at the Tokai Daini reactor to an unspecified date. JAPC was required by Japan's Nuclear Regulation Authority (NRA) to modify reinforcement work of the 1,100MW Tokai Dani reactor's seawall in east Japan's Ibaraki prefecture, as its foundations were identified to have technical issues. JAPC explained to NRA its plan to fix the issues on 7 August but said it will be difficult to complete the reinforcement work by September, as previously targeted. It is also unsure when it can resume operations at Tokai Daini. The reactor, which was built in 1978, has been closed since March 2011 when a devastating earthquake and tsunami and several subsequent nuclear meltdowns hit northeast Japan's Fukushima. JAPC has previously postponed completion of safety reinforcement work at Tokai Daini, previously aiming for a December 2022 completion . Japanese utility Tohoku Electric Power has also delayed a planned restart of the 825MW Onagawa No.2 nuclear reactor from September to November. It revised the fuel loading schedule for the Onagawa reactor in northeast Japan's Miyagi prefecture to September from a previously targeted July. It said it will need more time to ensure the smooth transportation of portable equipment such as water trucks needed to cool down the reactor, in case of emergencies such as earthquakes. Delays in nuclear reactor restarts are expected to maintain demand for thermal fuels like LNG and coal. Japan's LNG consumption for power generation totalled 10.5mn t during January-March, according to trade and industry ministry data. Coal use for power generation was 27.4mn t during the period. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU June manufacturing output down on year, up on month
EU June manufacturing output down on year, up on month
London, 14 August (Argus) — EU manufacturing output was much lower in June compared with a year earlier but edged higher from the previous month, preliminary data from Eurostat show. Seasonally and calendar-adjusted EU manufacturing output dropped to 99.6 against a 2021 baseline of 100, down by a significant 4.2 basis points on the year but up by 0.1 points compared with May. In more absolute terms, EU manufacturing output was down by 3.8pc from June 2023. Manufacturing production has dropped on the year for every month since July 2023 except for December. Output fell in four of the bloc's five largest economies — Germany, the Netherlands, Spain, Italy and France. Production was 4.6pc lower than a year earlier in Germany, the EU's largest economy, while only Spanish output increased ( see year-on-year graph ). Spain's economy has proved more resilient than that of any other major EU country over the past two years. Irish manufacturing data has become declassified, having previously been kept private. Ireland has a disproportionate effect on total EU data, with a weighting of 8.9pc in the 2021 baseline year. A large part of Ireland's manufacturing is performed outside the EU but counted as Irish production, with non gas-intensive sectors such as pharmaceuticals and electronics dominating. Because Irish manufacturing is based on large foreign orders performed overseas, it swings significantly from month to month, and in June was down by nearly 18pc on the year. But while Irish data are now declassified, Slovenian manufacturing data appear to be unavailable, having previously been viewable. Output was mixed across gas-intensive industries. Production in the most gas-intensive of all industries, the chemicals and chemical products sector, climbed by 5.7pc on the year, albeit from a low point of comparison. This was a fifth consecutive month of increase, as European production slowly recovers from the lows of late last year. Output in the food products and beverages, coke and refined petroleum products, and paper and paper products sectors was also up, while basic metals returned to year-on-year growth for just the second time since February 2022. The non-metallic minerals sector continued to struggle, with output down by 1.9pc on the year ( see table ). But this was the smallest decrease since August 2022, which could suggest that production is nearing the point of bottoming out. Non-metallic minerals output last grew on the year in May 2022. In the motor vehicles sector — crucial for demand of other gas-intensive goods such as glass, steel and chemicals — output was down by 3.4pc on the year, falling for a sixth consecutive month. This contrasts with 2023, when output was up on the year in every month as chip shortages eased from early 2022. In construction, a similarly important tertiary sector, the most recent data for May put EU production at 102.3 compared with a 2021 baseline, the lowest for any month since December 2022. High interest rates across the EU have increased the cost of borrowing for consumers, consequently weakening demand for large investments such as cars and houses. Eurozone manufacturing production contracted again in July, according to data compiled earlier this month . "The widely held belief that the eurozone's recovery would pick up speed in the second half of the year is taking a hit," Hamburg Commercial Bank chief economist Cyrus de la Rubia said. "We'll probably need to lower our GDP growth forecast for the year from 0.8pc." GDP growth in the eurozone was just 0.3pc in both the first and second quarters of this year, according to Eurostat. By Brendan A'Hearn EU June manufacturing output by sector Sector ±% Jun 23 ±% May 24 All manufacturing -3.8 0.1 Chemicals and chemical products 5.7 1.2 Non-metallic minerals -1.9 1.1 Food products and beverages 1.3 -1.3 Paper and paper products 5.4 -0.3 Basic metals 2.4 1.9 Coke and refined petroleum products 1.8 2.8 Motor vehicles and other transport -3.4 4.3 — Eurostat data seasonally and calendar-adjusted Percentage change in manufacturing by country, M-o-M Percentage change in manufacturing by country, Y-o-Y Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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