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Cop: Fossil fuel 'reduction' in draft text: Update

  • Market: Coal, Crude oil, Electricity, Emissions, Hydrogen, Natural gas, Oil products
  • 11/12/23

Adds reaction from negotiators and NGOs throughout

A new draft negotiating text from the UN Cop 28 climate conference calls upon countries to take action including "reducing both consumption and production of fossil fuels, in a just, orderly and equitable manner so as to achieve net zero by, before, or around 2050 in keeping with the science". It does not mention a phase-out of all fossil fuels.

This text is a draft for the global stocktake, which concludes in Dubai and measures progress towards Paris Agreement goals. It will be the main outcome of this summit. It is the first draft released by the Cop 28 presidency, illustrating that negotiations have moved along, but it remains to be seen how all parties will react to the new language on the contentious issue of fossil fuels.

A senior Arab states negotiator told Argus that the group expects further amendments on fossil fuels. Spain's climate minister Teresa Ribera told reporters that the EU "[considers] this a very insufficient text" on fossil fuels. "The EU cannot accept this proposal," Denmark's climate minister Dan Jorgensen said.

Cop 28 president Sultan al-Jaber told parties in a plenary convened after the text was released that then need to show "flexibility" and "deliver the highest ambition on all items including on fossil fuels".

The draft also calls on countries to take actions which could include "rapidly phasing down unabated coal" and "limitations on permitting new and unabated coal power generation". This goes further than previous language on coal, which called for "accelerating efforts towards the phase-down of unabated coal power".

It includes a call for parties to ramp up "zero and low emissions technologies", naming renewables, nuclear, abatement and removal technologies such as carbon capture, use and storage (CCUS) "so as to enhance efforts towards substitution of unabated fossil fuels in energy systems".

The text references a key Cop 28 pledge, asking countries to triple renewable energy capacity and double energy efficiency rates by 2030.

The president's draft calls on countries to accelerate efforts "towards net zero emissions energy systems… well before or by around mid-century" and to phase out "inefficient fossil fuel subsidies that encourage wasteful consumption and do not address energy poverty or just transitions, as soon as possible". The Cop process has previously called for a phase out of inefficient fossil fuel subsidies, but has not before attached a definition. The text on subsidies echoes the language used in G20 meetings.

The previous global stocktake draft had four options for a phase out of fossil fuels and one for no text on the subject at all.

Language around curbing all fossil fuels has never been included in a Cop outcome text, but non-profit World Resources Institute (WRI) director of international climate action David Waskow said this text does not set the bar as high as it could be. The presidency's role is also help parties to reach the greatest level of ambition possible, he said.

"We need a fossil fuel phaseout, not an optional ‘reduction' in fossil fuels", civil society organisation Oil Change International global policy lead Romain Ioualalen said. References to ‘low carbon fuels' in the text are "coded language for promoting fossil gas", he added.

Several ministers today pointed to strong momentum for language around a phase-out of fossil fuels in the final outcome of Cop 28, including French minister for energy transition Agnes Pannier-Runacher and Swedish climate ambassador Mattias Frumerie.

Ireland's environment minister and EU lead negotiator on climate finance Eamon Ryan cautioned earlier today that the text would not be "be perfect for everyone".


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01/05/25

Ukraine, US sign reconstruction deal

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Brazil's energy transition spending drops in 2024


30/04/25
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30/04/25

Brazil's energy transition spending drops in 2024

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Mexican economy grows 0.6pc in 1Q


30/04/25
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30/04/25

Mexican economy grows 0.6pc in 1Q

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Brazil's Biomas advances forest restoration project


30/04/25
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30/04/25

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Repsol sees Spanish refineries back to normal in a week


30/04/25
News
30/04/25

Repsol sees Spanish refineries back to normal in a week

Adds chief executive's comments and further detail on refineries Madrid, 30 April (Argus) — Repsol said it expects its five Spanish refineries to return to normal operations within a week following the nationwide power outage on Monday, 28 April. The company confirmed that power was restored to all its refineries on Monday evening, allowing the restart process to begin. It will take three days to restart the crude distillation units and 5-7 days to restart secondary conversion units, with hydrocrackers taking the longest, according to chief executive Josu Jon Imaz. A momentary and unexplained drop in power supply on the Spanish electricity grid caused power cuts across most of Spain and Portugal, disrupting petrochemical plants and airports, as well as refineries. Imaz noted that Repsol was fortunate that its refineries avoided damage from petroleum coke formation and other solidification processes during the shutdown. Repsol's 220,000 b/d Petronor refinery in Bilbao was the first to restart, thanks to electricity imports from France, he said. Petroleum reserves corporation Cores has temporarily reduced Spain's obligation to hold 92 days of oil product consumption as strategic reserves by four days, mitigating potential supply issues from the outage. Repsol's refining margin indicator, a benchmark based on European crack spreads weighted to the firm's product basket, has been recovering this week and stood at $7.5/bl this morning, compared with an average of $4.2/bl in April and $5.3/bl in the first quarter, according to Imaz. The company posted a 70¢/bl premium to the indicator in January-March on refinery optimisation and use of heavier and cheaper crudes. This was lower than the $1.20/bl premium it reported in 2024 and negatively affected by the high water content in first-quarter deliveries of heavy Mexican Maya, a staple for Repsol's more complex refineries. The high water cut in the Maya receipts shaved a potential 50¢/bl from Repsol's refining margin premium in the first quarter, and operational issues at the company's Tarragona refinery a further 20¢/bl, according to Imaz. Repsol has already completed the three major refinery maintenance projects for 2025 it flagged at its Bilbao, Tarragona and Puertollano refineries . Work on the three refineries in the first quarter cut about 40¢/bl from the firm's refining margin. The three factors point to a combined $1.10/bl shortfall in the firm's refining margin in the first quarter and were one of the reasons for the 80pc fall in adjusted profit at Repsol's refining-focused industrial division to €131mn ($149mn) in January-March from a year earlier and the 62pc fall in group profit to €366mn. By Jonathan Gleave Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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