US court to revisit $14mn penalty for ExxonMobil

Market: Crude oil, Emissions, Oil products
17/02/23

A federal appeals court said it will reconsider a $14.25mn fine against ExxonMobil for thousands of alleged air pollution violations at its 584,000 b/d refinery complex in Baytown, Texas.

The 5th US Circuit Court of Appeals agreed to hold an "en banc" rehearing, under which all 16 active judges on the court will revisit the emission penalty, which if upheld would be the largest imposed through a citizen lawsuit under the Clean Air Act. The appeal will provide ExxonMobil a chance to present its argument that the penalty was excessive and should be revised.

ExxonMobil did not immediately respond to a request for comment.

Residents living near the refinery complex brought the case in 2010, claiming ExxonMobil violated its air permits thousands of times. A federal district court eventually approved a nearly $20mn penalty, which after an appeal by ExxonMobil was revised to $14.25mn based on 3,651 days of alleged air emission violations from 2005-13.

The 5th Circuit, in a 2-1 ruling last year, upheld the penalty after finding the Clean Air Act did not require the residents to prove they were harmed by each of the thousands of alleged violations. The court rejected ExxonMobil's claims that it could only be fined on the 40 days it said residents showed they were harmed by Baytown's emissions.

The 5th Circuit, in a short order today, threw out last year's decision so the full court can reconsider. The court has tentatively scheduled oral arguments on the case for the week of 15 May.

The nonprofit Environment Texas, which filed the case on behalf of residents, said it was hopeful the 5th Circuit would conclude the case and require ExxonMobil to pay penalties imposed years ago.

"Despite essentially conceding in this litigation that it committed over 16,000 violations of the Clean Air Act, Exxon's now 14-year-long effort to avoid taking responsibility for its illegal pollution is seemingly unending," Environment Texas director Luke Metzger said.

The US Environmental Protection Agency, which is not directly a party in the case, last month filed a "friends of the court" brief urging the 5th Circuit not to grant rehearing. For citizen lawsuit cases under the Clean Air Act, the agency said residents only have to show ongoing harm from a facility to have legal standing to bring a case, rather than having to prove injuries for every day of alleged violations.

By Chris Knight

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16/11/24

Cop: US house delegation insists diverse energy mix

Baku, 16 November (Argus) — A diverse energy portfolio is needed to meet the world's growing demand and US energy security, a bipartisan delegation from the US House of Representatives' energy committee led by August Pfluger (R-Texas) said on Saturday at the UN Cop 29 summit in Baku, Azerbaijan. August Pfluger (R-Texas) said that the needed energy portfolio includes LNG, hydropower, nuclear, clean coal and fusion among other energy sources. Aside from hydropower, the delegation did not mention any other forms of renewable energy. "We believe that we're in an energy expansion, that the needs of the world are going to continue to include increased supply," he said. Asked whether the committee would try and influence US president-elect Donald Trump's decision to pull out from the Paris Agreement, Pfluger said that the recent US election results "spoke loud and clear about wanting to lower inflation and energy is the foundation of that." "If an agreement is going to hurt. If something is going to actually decrease our ability to do that, then we want to look at that but that's for the President to say," he added. LNG Plfuger in February sponsored a bill to eliminate federal licensing on new LNG projects, in response to US president Joe Biden's temporary pause on the review of new export facilities. He commented on the European Commission president Ursula von der Leyen mentioning in November that the EU could boost US LNG deliveries as a means to avoid US tariffs. "I think that's what we've been saying for four years. We have a solution. Let's compete with Russia. The life cycle emissions [in the US] are much better," Pfluger said, adding that the US is a reliable partner achieving its climate goals. Pfluger concluded that such an agreement will hugely benefit the Nato relationship too. The commission cannot oblige firms to buy LNG from the US. There is for now no ban on Russian LNG, and all member states would need to agree for such a ban to be imposed. Former European Central Bank president Mario Draghi in September proposed creating a new entity to perform joint purchases on the global markets in a report on EU competitiveness. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: US democrats flag looming Chinese climate lead

16/11/24

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16/11/24

Cop: US democrats flag looming Chinese climate lead

Baku, 16 November (Argus) — US democrat senators emphasised the need for the country to push forward in its climate ambitions, especially given China's position as an energy transition transition leader. China has a plan, US senator Ed Markey (D-Massachusetts) warned, pointing to the country's ambitions in renewables, electric vehicles and batteries. "If they have a plan and we do not have a plan, we will lose," he said, adding that US president-elect Donald Trump "does not have a plan". "We will lose markets around the planet, we will lose the cutting-edge technological breakthroughs that otherwise would have been incentivised here in the US," Markey said. US senator Sheldon Whitehouse (D-Rhode Island) echoed this sentiment. "If we don't keep moving forward, other countries will eat our lunch," he said. But the two senators are holding out hope that not all is lost in the race to be an energy transition leader, despite the incoming Trump presidency. "An enormous amount of the climate work that's being done in the US is being done at the state and municipal level," Whitehouse said, adding that a lot can get done "irrespective of who the president is". Whitehouse also noted that the EU's carbon border adjustment mechanism (CBAM) creates an emission-based tariff that will "[fall] much more heavily" on Chinese products because of China's emissions, which will help to incentivise manufacturing and jobs to move to the US. There are also bipartisan carbon tariff conversations happening, he added, emphasising that there are plenty of opportunities for progress around carbon tariffs. "If the US has a plan and China has a plan, we will win," Markey said. "But you have to have a plan," he said, adding that the Inflation Reduction Act (IRA) is one of such plans. Markey also believes that Donald Trump is "in for a rude awakening" should he try to repeal the IRA. Trump will learn a lot about "how many Republican congressmen want to have stuff made in America," he added. US climate advisor John Podesta also noted that Trump will face opposition even from Republican-led districts earlier this week. Around 57pc of new clean energy jobs created since the IRA are in congressional districts represented by republicans, he said. "Support for clean energy has become bipartisan, many republicans especially governors know all this activity is a good thing for their districts, states and for their economies." By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Parties continue slow work on finance goal: Update

16/11/24

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16/11/24

Cop: Parties continue slow work on finance goal: Update

Updates throughout Baku, 16 November (Argus) — Parties at the UN Cop 29 climate talks in Baku have asked for more time to work on "specific proposals" for a new finance goal, working from a draft text released yesterday , but it is unlikely to yield progress on key sticking points. Country representatives are seeking to agree on a new climate finance goal for developing nations, following on from the current — broadly recognised as inadequate — $100bn/yr target. A plenary is due to take place later today in Baku. "Over the last few days some people have doubted whether collectively we can deliver. It is time for the negotiators to start proving them wrong," Cop 29 deputy lead negotiator Samir Bejanov said. The current draft text still fails to bridge the huge divide between developed and developing countries on key issues such as an amount for the goal, the contributor base and what the funds should be used for. And the new version due to come out today is unlikely to show meaningful progress on these issues, observers suggested, leaving them for ministers to tackle next week. Technical negotiators continue to try and move forward on topics such as funds' access and transparency. Developed countries have still not proposed a number for the goal, and want the contributor base broadened. Developing countries remain broadly united in calling for climate public finance of over $1 trillion/yr. Options show that developing country parties seek a new finance goal that serves mitigation — actions to reduce emissions — adaptation and loss and damage. Adaptation refers to adjustments to avoid global warming effects where possible, while loss and damage describes the unavoidable and irreversible effects of such change. Developed nations are also pushing for sub-targets of $220bn/yr for least developed countries (LDCs) and $39bn/yr for small island developing states (Sids), in which money for adaptation should come in the form of grants and highly concessional finance and funding for loss and damage "primarily in grants". Multi-layered The multi-layered approach in the draft, mostly supported by developed countries, does not mention loss and damage. On broadening the contributor base, it has options calling on "parties in a position to contribute" or "all capable parties" to "mobilise jointly $100bn/yr for mitigation and adaptation in developing countries by 2035". The UN climate body the UNFCCC works from a list of developed and developing countries from 1992 — delineating 24 countries plus the EU as developed — and many of these note that economic circumstances have changed in some countries, including China, over the past 32 years. China between 2013 and 2022 provided and mobilised $45bn in climate finance to developing countries, equivalent to 6.1pc of climate finance provided by all developed countries in the period, according to think-tank WRI. A few options in the multi-layered approach in the draft talk about "investments", language that developing countries do not support, and "investing trillions "from all sources, public, private, domestic and international". Developing nations are not against private sector financing, but they want the main figure for the new finance goal to come from public sources, observers said. Some parties on both sides are calling for an acceleration of the reforms of multilateral development banks, key to leverage billions in private sector finance, as well as for the use of taxes and levies. But these issues are largely outside of the remit of the Cop, even though they may get a boost from the upcoming G20 leaders summit on 18-19 November. UN climate body chief Simon Stiell today called on G20 to ensure the availability of more grant and concessional finance, make progress on debt relief, and push for additional multilateral development bank reforms. Brazil is looking to use its G20 presidency to advance agreement on energy transition finance, having set fighting climate change as one of its priorities. The country called for a global finance governance that includes rules for financing a "just and equitable" energy transition in developing economies and for an easier access to climate funds. Brazil has also pushing for a 2pc tax on billionaires that could generate up to $250 bn/yr in revenue. By Victoria Hatherick, Jacqueline Echevarria and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: China keeps focus on south-south cooperation

16/11/24

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16/11/24

Cop: China keeps focus on south-south cooperation

Baku, 16 November (Argus) — China said that expanding the contributor base for the new finance goal under discussion at the summit will not "solve the problem", while showcasing its efforts for "south-south" — developing countries — co-operation at the UN Cop 29 climate summit. China has signed 53 climate co-operation initial agreements with other developing countries and implemented more than 300 climate-related capacity building projects, China's environment and ecology minister (MEE) Huang Run Qiu said at a Cop 29 event on 15 November. He did not provide a timeline. China also launched a Zero-Carbon Island co-operation initiative during the summit. Chinese vice premier Ding Xuexiang pointed out at the Cop 29 leaders summit that the country "provided and mobilised" more than 177bn yuan ($24.5bn) of project funds to support other developing countries' climate responses since 2016, Ding said on 13 November. Think-tank WRI research found that China provided $45bn in climate finance to developing countries between 2013-22, equivalent to 6.1pc of climate finance provided by all developed countries in the period. Ding expressed China's willingness to work with "all parties" to meet climate goals, but the country has also made clear that the onus is on developed countries to finance the new climate finance goal. 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). Developed nations are calling for more contributors for the goal, including from developing countries in a position to contribute, such as China. The UN climate body the UNFCCC works from a list of developed and developing countries from 1992 — delineating 24 countries plus the EU as developed — and many of these note that economic circumstances have changed over the past 32 years. But China believes that it is for developed countries to "take the lead" in mobilising financial resources, encouraging others to "voluntarily" provide such support, it said during a ministerial dialogue on finance. Discussions on expanding contributors for the goal will "only lead to further controversies" without solving the problem, with China viewing mutual support between the NCQG and south-south co-operation as "the ideal scenario". Others have lauded China's south-south co-operation efforts. The south-south model "represents a powerful framework that has repeatedly shown the impact of developing nations working together to achieve sustained development," said United Nations Office for Project Services (Unops) executive director Jorge Moreira da Silva. Cop 29 chief executive Elnur Soltanov also described China as "one of the locomotives of green transition in the world". UN climate body UNFCCC executive secretary Simon Stiell emphasised the importance of multilateralism and international co-operation, and stated that the world will "need China's continued leadership". He warned against a "two-speed transition, because winners and losers still share the same atmosphere". Stiell also noted that a strong NDC — country climate plan — would "send an important signal to other countries that stronger targets drive investment". China has yet to submit its new NDC with updated 2035 targets — due by February next year. But Ding said that it will be "economy-wide" and "cover all greenhouse gases", while continuing to strive to achieve carbon neutrality before 2060. By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Colombia’s climate plan to address fossil fuels

16/11/24

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16/11/24

Cop: Colombia’s climate plan to address fossil fuels

Baku, 16 November (Argus) — Colombia will seek to address the "divisive issue" of "the proliferation of fossil fuels" in its next emissions reduction plan — nationally determined contribution (NDC), environment minister Susanna Muhammad told Argus, adding that it would prompt a "strong debate" in the country. Colombia's president Gustavo Petro seeks to end the country's dependence on fossil fuels, while promoting a transition to clean and renewable energy. "Of course this is a very divisive issue, especially for a country that is looking for a whole economy transition," Muhammad said on the sidelines of the UN Cop 29 climate summit in Baku. "And trying to get the whole of society and the whole of government behind that will be a strong debate." Petro ordered an end to new hydrocarbon exploration and production contracts soon after taking office in August 2022. Petroleum association ACP said that Colombia's crude output will begin declining in 2027 as reserves are insufficient to maintain output amid falling exploratory activity. Petro's ambition to phase out fossil fuels risks sacrificing key revenues for the country. But Muhammad highlighted the need to achieve an ambitious financial goal that supports a just transition in developing economies. "We cannot continue playing with the same financial rules of the game," she said. "What we are seeing at this Cop 29 is that we need solidarity and fairness in the process of financing this transition." "We said in Dubai that we would triple renewables by 2030. The question remains, who is going to triple renewables and for whom?" she said, pointing to the significant gap in renewables expansion between developed and developing economies. Countries at Cop 28 in Dubai, the UAE, last year agreed on a deal that included transitioning away from fossil fuels, tripling renewable energy capacity and doubling annual energy efficiency gains globally by 2030. Muhammad added that the country will be submitting its NDC to the UN climate body the UNFCCC by June next year because it will "go through a very strong consultation process" with different sectors of the economy. Cop parties are expected to publish their next NDCs to the Paris climate agreement — this time for 2035 — in November-February, as part of a cycle that requires countries to "ratchet up" their commitments every five years. "Our main source of emissions is deforestation, agriculture practices, especially cattle ranching," she said, adding that the government is seeking the participation of actors that are at the forefront of the climate crisis. Risky business Talking about the possibility of the US pulling out of the the Paris Agreement and Argentina's delegation exiting negotiations in Baku, she warned that by not putting the people first in the fight against climate change, leaders are risking that other "authoritarian" regimes or "climate deniers" take more power. Brazil's secretary for climate change Ana Toni said today that private companies like policy consistency and that businesses need to look at the countries that are showing climate commitment and consistency in their NDCs. "The climate crisis is irreversible, we need to focus on climate action and implementation," Toni said. By Jacqueline Echevarria Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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