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New pledges expected at UN climate talks: Kerry

  • Market: Electricity, Emissions, Natural gas
  • 02/11/22

The opening days of the upcoming UN climate talks will include a number of new commitments from countries to take more action to reduce emissions and support global decarbonization, US climate envoy John Kerry said today.

The US has been working with a number of countries to roll out new commitments at the upcoming UN Cop 27 climate talks in Sharm el-Sheikh, Egypt, ranging from more aggressive climate pledges to agreements to build new renewable energy resources, Kerry said during a State Department briefing.

"We have spent a great deal of time over this past year working with countries around the world to get them to raise their NDCs," Kerry said, referring to the nationally determined contributions (NDC), or pledges, under the Paris Climate Agreement.

Kerry said a number of countries will announce new pledges in coming days, including Mexico, which previously said it is working on an update to its NDC, while more announcements around private sector pledges, deforestation and methane reductions are in the works. The UN conference runs from 6-18 November.

The US has also been working with countries including South Africa and India on new energy transition partnerships , which will be announced at the Cop, Kerry said.

At least year's talks in Glasgow, Scotland, Germany, the UK, the US, France and the EU agreed to support South Africa's energy transition and in particular to phase out its use of coal.

Kerry also previewed a new agreement with host nation Egypt that he said will call for it to reduce its natural gas use and to build out 10GW of new renewable energy capacity.

"There will be more to say about that next week," he said.

Kerry said the US has four priorities going into the talks, including making sure countries stick to their past commitments.

"We seek a collective message out of the Cop that the world is going to remain strong on climate ambition and will build on, not go backward, the pledges" from Glasgow, he said.

Kerry also said the US is committed to finding a path forward to address loss and damage, one of the top priorities for the Egyptian government leading the talks. It refers to providing financial support for countries already suffering from climate-related events such as storms and sea-level rise.

"We are anxious to do this in a very cooperative, non-confrontational way," he said.

Some non-governmental groups have warned the issue could end up derailing talks around other, less controversial issues at the Cop if certain countries feel it is not addressed appropriately.

Kerry did not call for a specific outcome on the issue, but said the US supports "coming out with some kind of structure that provides appropriate financial arrangements."


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07/04/25

Colombia's renewables grow, but gap looms

Colombia's renewables grow, but gap looms

Bogota, 7 April (Argus) — Development of non-conventional renewable (NCRE) generation has picked up in Colombia, but the pace is still not fast enough to cover a projected generation shortage by 2027-2028. Colombia will likely reach 2.55GW in installed NCRE such as solar and wind — excluding large hydropower — by the end of 2025, up from 1.88GW at the end of 2024, Colombian renewable association SER director Alexandra Hernandez told Argus at the Colombia Genera conference held last week in Cartagena. About 670MW from 19 medium and large NCRE plants worth $500mn will likely come online in 2025, Hernandez noted. Of that total, 30MW in two projects came online in January, and the balance of 640MW are under construction, according to Hernandez. The plants will reduce emissions by 1.1mn metric tonnes (t) CO2/yr compared with conventional generation. For 2026, 419MW in NCRE could come online. NCRE will comprise a 12pc share of Colombia's generation capacity in 2025, up from 10pc in 2024. Despite that, Colombia will fail to meet its target of 6GW in NCRE by August 2026, when the administration of President Gustavo Petro ends, former minister of mines and energy Amylkar Acosta said. Colombia will likely will end 2026 with 3GW, Hernandez noted. This comes despite Petro's support for renewable energy and attempts to phase out hydrocarbons use. Much of this development is focused on the dry, windswept department of La Guajira that borders Venezuela and juts into the Caribbean. US firm AES' will start building the first 259MW phase of its 1.1GW Jemeiwaa Ka'I wind complex there later this year, AES's general manager Federico Echavarria said at the Colombia Genera conference. "Our biggest bet is La Guajira," Echavarria said. Last year, Colombia's environmental regulator Anla approved a transmission line connecting 648MW of planned wind capacity in the La Guajira area to the national grid. The 500kV Casa Electrica-Colectora transmission line and substation will connect with Grupo de Energia de Bogota's 500kV Colectora transmission line. Colectora has begun construction and should come online in 2026, a delay from its original 2022 start date. La Guajira has Colombia's greatest renewable power potential, including 21GW of wind power potential, according to state planning agency UPME. But delays to key transmission projects and lengthy community consultations impeded development. Italian power company Enel suspended indefinitely construction of a 205MW wind farm in the Windpeschi region, but state-controlled oil company Ecopetrol is seeking authorization to buy it. Projects advancing in other departments include the 200MW Orquidea solar project in the Caribbean province of Bolivar, which recently earned an environmental permit that clears the way for construction. Running out of time But this new generation capacity will not cover an expected supply shortfall. Colombia is forecast to have a gap of around 2,000MW by 2027-2028 assuming baseline consumption, and 3,000MW-6,000MW if demand rises further, several electricity associations have said. Renewables could help fill this gap, as the construction is fairly quick once permits as security, the renewables group SER said. But 47pc of renewable power companies were unable to complete their planned investments in 2024, with permitting delays among the top reason, the group found in a member survey. Permits from the government's mining and planning unit UPME takes nine months, compared with the two months stipulated by the law. Regional entities take twice as long to issue a permit than the legal limit. The government will push to do more, energy and mines minister Edwin Palma said in Cartagena. "We are convinced and committed to ensuring that expansion projects are carried out," he said. "We will work with the ministry of the interior to expedite licenses." By Diana Delgado Colombia's power generation mix % Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US producers look overseas as shale stalls


07/04/25
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07/04/25

US producers look overseas as shale stalls

New York, 7 April (Argus) — US shale producers are seeking to deploy their expertise around hydraulic fracturing in international markets, in a marked departure from their recent strategy and one that is set to accelerate as domestic output slows. Continental Resources — whose billionaire founder and executive chairman Harold Hamm was one of the driving forces behind the shale revolution after figuring out how to unlock the vast resources of North Dakota's Bakken basin with horizontal drilling — recently announced plans to explore for unconventional resources in Turkey. And EOG Resources aims to kick-start a drilling campaign in Bahrain. Early successes could prompt a scramble by peers to follow suit, which would be a reversal of the trend seen in the early days of the shale boom when the industry largely retrenched from overseas investments to concentrate on exploiting domestic plays. And while decisions to venture abroad have been mainly based on individual company strategies up until now — and investors have been lukewarm at best — forecasts for shale to start plateauing in the coming years could lend them greater impetus. "Maybe, as they have success, that will draw others in," energy investment firm Bison Interests chief investment officer and founder Josh Young says. "It could be the start of something big." The caveat is that a potential international push at scale is unlikely to happen overnight, and companies such as Murphy Oil and APA — which already have exploration campaigns under way from Vietnam to Ivory Coast and Suriname — have underperformed compared with their rivals. "You are not seeing that market acceptance or market credit for international projects," Young says. That perception may shift if international exploration yields above-average returns for shareholders, boosting the case for producers to seek to build out their inventory further afield as growth in the shale patch slowly grinds to a halt. International exploration may have its own risks, given shale's success story has largely been confined to the US and Argentina to date. But the "cost of entry is relatively low compared to a North American landscape with little room for exploration and high premiums for solid assets in the Permian", consultancy Rystad Energy vice-president for North America oil and gas Matthew Bernstein says. Hamm, who took Continental private more than two years ago after tiring of public markets, recently warned that US shale is beginning to plateau . "What we really need to concentrate on is where we go as we crest right here in America, what the downside looks like," he told the CERAWeek by S&P Global conference in Houston. He also signalled a greater openness to drill outside North America. Talking Turkey Continental recently announced a joint venture with Turkey's national oil company and US-based TransAtlantic Petroleum to develop oil and gas resources in southeast and northwest Turkey. State-owned Turkish Petroleum has pegged initial estimates from the Diyarbakir basin in the southeast that could reach 6bn bl of oil and 12 trillion-20 trillion ft³ (340bn-570bn m³) of gas. The Thrace basin in northwest Turkey may hold up to 20 trillion-45 trillion ft³. "We see immense potential in Turkey's untapped resources," Continental's chief executive, Doug Lawler, says. And in February, EOG Resources announced a tie-in with state-owned Bapco Energies to evaluate a gas prospect in Bahrain. EOG will take on the role of operator, and the venture is awaiting further government approvals. "The formation has previously been tested using horizontal technology, delivering positive results," EOG chief executive Ezra Yacob says. By deploying its existing skillset around horizontal drilling and completions, EOG is confident of achieving results that are competitive with projects in its domestic portfolio. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Tariffs and their impact larger than expected: Powell


04/04/25
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04/04/25

Tariffs and their impact larger than expected: Powell

New York, 4 April (Argus) — Federal Reserve chairman Jerome Powell said today tariff increases unveiled by US president Donald Trump will be "significantly larger" than expected, as will the expected economic fallout. "The same is likely to be true of the economic effects, which will include higher inflation and slower growth," Powell said today at the Society for Advancing Business Editing and Writing's annual conference in Arlington, Virginia. The central bank will continue to carefully monitor incoming data to assess the outlook and the balance of risks, he said. "We're well positioned to wait for greater clarity before considering any adjustments to our policy stance," Powell added. "It is too soon to say what will be the appropriate path for monetary policy." As of 1pm ET today, Fed funds futures markets are pricing in 29pc odds of a quarter point cut by the Federal Reserve at its next meeting in May and 99pc odds of at least a quarter point rate cut in June. Earlier in the day the June odds were at 100pc. The Fed chairman spoke after trillions of dollars in value were wiped off stock markets around the world and crude prices plummeted following Trump's rollout of across-the-board tariffs earlier in the week. Just before his appearance, Trump pressed Powell in a post on his social media platform to "STOP PLAYING POLITICS!" and cut interest rates without delay. A closely-watched government report showed the US added a greater-than-expected 228,000 jobs in March , showing hiring was picking up last month. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU sees no credibility issue in 2040 GHG target delay


04/04/25
News
04/04/25

EU sees no credibility issue in 2040 GHG target delay

Brussels, 4 April (Argus) — The lack of a proposal for a 2040 greenhouse gas (GHG) reduction target is not a credibility issue for the European Commission, officials said. The commission will have an "ambitious" 2040 GHG proposal in time to derive a 2035 climate plan for the EU "well in time" for the UN Cop 30 climate talks in Belem, Brazil, over 10-21 November. The commission was expected to make a legislative proposal for a 2040 EU climate target no later than six months after the conclusion of the first global stocktake under the Paris climate agreement, which concluded at Cop 28 in December 2023, as per the bloc's European Climate Law. The process is "quite late nationally and also globally", the commission acknowledged. But officials insist that the update to the climate law, setting a 2040 GHG target, will come "well in time" for the Cop process. The EU will then derive its nationally determined contribution (NDC) to the Paris deal for 2035 from 2040. The official deadline for parties to submit their updated NDC was 10 February, but only 12 countries made timely submissions. "The credibility issue is much less to do with the agenda now," climate spokesperson Anna-Kaisa Itkonen said. EU climate commissioner Wopke Hoekstra has made "very, very clear" that the commission is preparing for an "ambitious climate law". "Ninety per cent is currently in the political guidelines," Itkonen said. "It is the starting point for these discussions," she added, underlining the extreme importance of presenting a 2040 proposal that has a "substantial majority". Another EU source noted that the commission is discussing various options and scenarios with EU member states and the European Parliament. "We want to keep the ambition as high as possible. So our starting point of discussion is 90pc," the source said. Discussion of 2040 flexibility — such as following a weaker trajectory toward climate neutrality, or using international credits — would have "severely negative" implications for the EU's standing in international climate action, NGO Bellona Europa's senior manager for carbon accounting, Mark Preston Aragones, said. "The commission should not come with an already watered-down proposal even before negotiations formally begin with the European Parliament and EU member states," he said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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New tariffs could upend US tallow imports


03/04/25
News
03/04/25

New tariffs could upend US tallow imports

New York, 3 April (Argus) — New US tariffs on nearly all foreign products could deter further imports of beef tallow, a fast-rising biofuel feedstock and food ingredient that had until now largely evaded President Donald Trump's efforts to reshape global trade. Tallow was the most used feedstock for US biomass-based diesel production in January for the first month ever, with consumption by pound rising month to month despite sharp declines in actual biorefining and in use of competing feedstocks. The beef byproduct benefits from US policies, including a new federal tax credit known as "45Z", that offer greater subsidies to fuel derived from waste than fuel derived from first-generation crops. Much of that tallow is sourced domestically, but the US also imported more than 880,000t of tallow last year, up 29pc from just two years earlier. The majority of those imports last year came from Brazil, which until now has faced a small 0.43¢/kg (19.5¢/lb) tariff, and from Australia, which was exempt from any tallow-specific tariffs under a free trade agreement with US. But starting on 5 April, both countries will be subject to at least the new 10pc charge on foreign imports. There are some carveouts from tariffs for certain energy products, but animal fats are not included. Some other major suppliers — like Argentina, Uruguay, and New Zealand — will soon have new tariffs in place too, although tallow from Canada is for now unaffected because it is covered by the US-Mexico-Canada free trade agreement. Brazil tallow shipments to the US totaled around 300,000t in 2024, marking an all-time high, but tallow shipments during the fourth quarter of 2024 fell under the 2023 levels as uncertainty about future tax policy slowed buying interest. Feedstock demand in general in the US has remained muted to start this year because of poor biofuel production margins, and that has extended to global tallow flows. Tallow suppliers in Brazil for instance were already experiencing decreased interest from US producers before tariffs. Brazil tallow prices for export last closed at $1,080/t on 28 March, rising about 4pc year-to-date amid support from the 45Z guidance and aid from Brazil's growing biodiesel industry, which is paying a hefty premium for tallow compared to exports. While the large majority of Brazilian tallow exports end up in the US, Australian suppliers have more flexibility and could send more volume to Singapore instead if tariffs deter US buyers. Export prices out of Australia peaked this year at $1,185/t on 4 March but have since trended lower to last close at $1,050/t on 1 April. In general, market participants say international tallow suppliers would have to drop offers to keep trade flows intact. Other policy shifts affect flows Even as US farm groups clamored for more muscular foreign feedstock limits over much of the last year, tallow had until now largely dodged any significant restrictions. Recent US guidance around 45Z treats all tallow, whether produced in the US or shipped long distances to reach the US, the same. Other foreign feedstocks were treated more harshly, with the same guidance providing no pathway at all for road fuels from foreign used cooking oil and also pinning the carbon intensity of canola oil — largely from Canada — as generally too high to claim any subsidy. But tariffs on major suppliers of tallow to the US, and the threat of additional charges if countries retaliate, could give refiners pause. Demand could rise for domestic animal fats or alternatively for domestic vegetable oils that can also be refined into fuel, especially if retaliatory tariffs cut off global markets for US farm products like soybean oil. There is also risk if Republicans in the Trump administration or Congress reshape rules around 45Z to penalize foreign feedstocks. At the same time, a minimum 10pc charge for tallow outside North America is a more manageable price to pay compared to other feedstocks — including a collection of charges amounting to a possible 69.5pc tax on Chinese used cooking oil. And if the US sets biofuel blend mandates as high as some oil and farm groups are pushing , strong demand could leave producers with little choice but to continue importing at least some feedstock from abroad to continue making fuel. Not all US renewable diesel producers will be equally impacted by tariffs either. Diamond Green Diesel operates Gulf Coast biorefineries in foreign-trade zones, which allow companies to avoid tariffs on foreign inputs for products that are ultimately exported. Biofuel producers in these zones could theoretically refine foreign tallow, claim a 45Z subsidy, and avoid feedstock tariffs as long as they ship the fuel abroad. Jurisdictions like the EU and UK, where sustainable aviation fuel mandates took effect this year, are attractive destinations. And there is still strong demand from the US food sector, with edible tallow prices in Chicago up 18pc so far this year. Trump allies, including his top health official, have pushed tallow as an alternative to seed oils. By Cole Martin and Jamuna Gautam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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