New Zealand creates climate fund

Spanish Market: Coal, Emissions, Hydrogen
17/05/22

The New Zealand government has created a NZ$4.5bn ($2.86bn) fund to spend on measures to lower greenhouse gas (GHG) emissions such as funding programmes to accelerate the take-up of electric vehicles (EVs), end the use of coal and financing studies on developing the country's hydrogen strategy and its offshore wind power generation sector.

The Climate Emergency Response Fund (CERF) will be funded from revenue generated from its Emissions Trading Scheme, New Zealand prime minister Jacinda Ardern said.

Around NZ$1.2bn will be spent on the transport sector, to support the take-up of EVs, promote greater use of public transport and cycling and decarbonise New Zealand's freight system, New Zealand climate change minister James Shaw said.

New Zealand plans to introduce zero emissions buses from 2025 and have the national public transport fleet decarbonised by 2035, Shaw said. It plans to reduce emissions from freight transport by 35pc by 2035.

New Zealand also intends to end its reliance on coal with a ban on new low to medium temperature coal boilers and a phase out of existing ones by 2037.

The country's latest audited annual GHG emissions were 78.78mn t of carbon dioxide equivalent (CO2e) in 2020, 20.8pc up from 65.19mn t of CO2e in 1990 but down 3.5pc or by 2.84mn t from 2019 levels.

New Zealand's energy sector accounted for around 40pc of the country's emissions and around 50pc is derived from the agricultural sector.

The announcement of the CERF funding was part of the New Zealand government's budget for the 2022-23 fiscal year to 30 June and came after last week's launch of the government's GHG emissions targets for three periods up until 2035.

The first New Zealand GHG emissions budget for 2022-25 sets average emissions at 72.4mn t/yr of CO2e or 8pc below 2020 levels.

By Kevin Morrison

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05/11/24

Port of Vancouver grinds to halt as picket lines form

Calgary, 5 November (Argus) — Commodity movements at the port of Vancouver have halted as a labour dispute could once against risk billions of dollars of trade at Canada's busiest docks. The International Longshore and Warehouse Union (ILWU) Local 514 began strike activity at 11am ET on 4 November, following through on a 72-hour notice it gave to the BC Maritime Employers Association (BCMEA) on 1 November. The BCMEA subsequently locked out workers hours later that same day, 4 November, which the union says is an overreaction because the union's job action was only limited to an overtime ban for its 730 ship and dock foreman members. Natural resource-rich Canada is dependent on smooth operations at the British Columbia port of Vancouver to reach international markets. The port is a major conduit for many dry and liquid bulk cargoes, including lumber, wood pellets and pulp, grains and agriculture products, caustic soda and sodium chlorate, sugar, coal, potash, sulphur, copper concentrates, zinc and lead concentrate, diesel and renewable diesel liquids and petroleum products. These account for about two-thirds of the movements through the port. Canadians are also reliant on the port for the import of consumer goods and Asian-manufactured automobiles. The two sides have been at odds for 19 months as they negotiate a new collective agreement to replace the one that expired in March 2023. Intervention by the Canada Industrial Relations Board (CIRB), with a hearing in August and September, followed by meetings in October with the Federal Mediation and Conciliation Service (FMCS), failed to culminate in a deal. The BCMEA's latest offer is "demanding huge concessions," according to the ILWU Local 514 president Frank Morena. The BCMEA refutes that, saying it not only matches what the ILWU Longshore workers received last year, but includes more concessions. The offer remains open until withdrawn, the BCMEA said. A 13-day strike by ILWU longshore workers in July 2023 disrupted C$10bn ($7.3bn) worth of goods and commodities, especially those reliant on container ships, before an agreement was met. Grain and cruise operations are not part of the current lockout. The Westshore coal terminal is also expected to continue operations, the Port of Vancouver said on 4 November. The Trans Mountain-operated Westridge Marine Terminal, responsible for crude oil exports on Canada's west coast, should also not be directly affected because its employees are not unionized. In all, the port has 29 terminals. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU contributed $31.2bn public climate finance in 2024

05/11/24

EU contributed $31.2bn public climate finance in 2024

Edinburgh, 5 November (Argus) — The EU has contributed €28.6bn ($31.2bn) in climate finance from public sources in 2024 to help developing countries cut their greenhouse gas emissions (GHG) and adapt to climate change, according to the European Council. Around half the funding went to climate adaptation or to cross-cutting action, which involves both mitigation — reducing GHG emissions — and adaptation. Almost 50pc took the form of grants, according to the EU. The €28.6bn includes €3.2bn from the EU budget, including from the European Fund for Sustainable Development Plus, and €2.6bn from the European Investment Bank. The EU said it also mobilised €7.2bn of private finance last year, and it "seeks to extend the range and impact of sources and financial instruments and to mobilise more private finance". The figures were released ahead of the UN Cop 29 climate talks, which open on 11 November in Baku, Azerbaijan. Finance will be a key topic at this year's summit as parties to the Paris deal will seek to agree on a new finance goal for developing nations, following on from the current, but broadly recognised as inadequate, $100bn/yr target. EU negotiators have signalled willingness to support "a stretched goal" with a public finance core, but have yet to provide a figure. Developed countries in general have yet to commit to a number for climate finance, while developing nations have for some time called for a floor of at least $1 trillion/yr. By Caroline Varin Europe's contribution to climate finance €bn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Carbon markets have ‘fallen short’ for LDCs: UNCTAD

05/11/24

Carbon markets have ‘fallen short’ for LDCs: UNCTAD

London, 5 November (Argus) — Carbon markets so far have not delivered meaningful climate finance to least developed countries (LDCs), according to a report by the UN Conference on Trade and Development (UNCTAD), although the mechanisms under Article 6 of the Paris climate agreement present improved prospects. "Fragmented" carbon markets have "fallen short" on providing climate finance to LDCs, increasing climate change mitigation, and supporting the structural transformation of these countries, UNCTAD said. Carbon credit prices are not high enough to incentivise projects, the report warns, and if they hold at about $10/t CO2, about 97pc of LDC mitigation potential will remain unharnessed by mid-century. Participation in the voluntary carbon market (VCM) and the UN's clean development mechanism (CDM) has also been concentrated in few LDC countries. About 75pc of carbon credits from LDC-based projects in the VCM come from just six countries — Bangladesh, Cambodia, the Democratic Republic of the Congo, Malawi, Uganda and Zambia — while 80pc of CDM credits come from six countries, four of which also figure in the VCM's areas of concentration — Bangladesh, Cambodia, Malawi, Myanmar, Nepal and Uganda. And the limited inclusion of carbon offset credits in most compliance markets means they "do not offer meaningful entry points" for LDCs, UNCTAD said. "The outlook may improve" as markets at the UN level shift to new mechanisms under Article 6 of the Paris deal, UNCTAD said, as parties can apply the lessons learned from the CDM to create an improved system — efforts for which have been evidenced by the "prolonged negotiations" on Article 6 rules, which will continue at the UN's Cop 29 climate conference kicking off in Baku, Azerbaijan, next week. The success of these mechanisms will rely on "decisive action" by LDCs to determine how to approach their participation to ensure it supports their development goals, the report found. And UNCTAD called on the international community to standardise carbon market rules to reduce fragmentation and simplify access for LDCs, as well as to allow them to participate in compliance markets. But carbon markets are just one tool, UNCTAD emphasised, and not a substitute for other forms of climate finance. This will be a key topic at Cop 29, as parties attempt to decide on a new collective quantified goal to replace the existing $100bn/yr commitment pledged by developed countries. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US railroad-labor contract talks heat up

04/11/24

US railroad-labor contract talks heat up

Washington, 4 November (Argus) — Negotiations to amend US rail labor contracts are becoming increasingly complicated as railroads split on negotiating tactics, potentially stalling operations at some carriers. The multiple negotiating pathways are reigniting fears of 2022, when some unions agreed to new contracts and others were on the verge of striking before President Joe Biden ordered them back to work . Shippers feared freight delays if strikes occurred. This round, two railroads are independently negotiating with unions. Most of the Class I railroads have traditionally used the National Carriers' Conference Committee to jointly negotiate contracts with the nation's largest labor unions. Eastern railroad CSX has already reached agreements with labor unions representing 17 job categories, which combined represent nearly 60pc of its unionized workforce. "This is the right approach for CSX," chief executive Joe Hinrichs said last month. Getting the national agreements on wages and benefits done will then let CSX work with employees on efficiency, safety and other issues, he said. Western carrier Union Pacific is taking a similar path. "We look forward to negotiating a deal that improves operating efficiency, helps provide the service we sold to our customers" and enables the railroad to thrive, it said. Some talks may be tough. The Brotherhood of Locomotive Engineers and Trainmen (BLET) and Union Pacific are in court over their most recent agreement. But BLET is meeting with Union Pacific chief executive Jim Vena next week, and with CSX officials the following week. Traditional group negotiation is also proceeding. BNSF, Norfolk Southern and the US arm of Canadian National last week initiated talks under the National Carriers' Conference Committee to amend existing contracts with 12 unions. Under the Railway Labor Act, rail labor contracts do not expire, a regulation designed to keep freight moving. But if railroads and unions again go months without reaching agreements, freight movements will again be at risk. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Trump unlikely to fully end US clean energy policies

04/11/24

Trump unlikely to fully end US clean energy policies

Houston, 4 November (Argus) — Although former US president Donald Trump has promised to end climate policies enacted during the administration of President Joe Biden, the political complications of reversing course make a full change of direction unlikely should Trump return to the White House. Trump has frequently criticized Inflation Reduction Act (IRA), promising to terminate the " Green New Scam " and rescind all unspent funds in the Biden administration's climate policy suite, if he is elected to a second term. But fulfilling that pledge may be difficult for many reasons, not least of which is whether Republicans have control of both chambers of Congress after Tuesday's election, including the unlikely outcome of a 60-seat majority needed to bypass a Senate filibuster. Beyond the math, Republican districts are benefiting from IRA funding, with some lawmakers from Trump's party already opposing the turmoil that could arise from an about-face on tax policy. "There's no way they're going to be able to replace and repeal the IRA, in large part because so many of the dollars are flowing to [Republican] states," said David Shepheard, a partner at consultant Baringa who specializes in energy and resources. "I think the pieces of the IRA that are most at risk are the [electric vehicle] tax credits, potentially some of the stimulative pieces around offshore wind." The IRA established a host of federal incentives to support clean electricity growth and the associated domestic supply chain. Those include technology-agnostic production and investment tax credits for electricity generators based on their emissions intensities. But the law went well beyond the power sector and also established credits for hydrogen production, electric vehicles and the manufacture of components needed by clean electricity systems. Project developers are counting on a policy trajectory that does not match Trump's rhetoric, which would allow some incentives to stay on the books. Companies expect market forces, such as corporate demand, and state mandates to continue to drive growth for solar and onshore wind and energy storage, rather than national politics. But there is more trepidation around offshore wind, a less mature sector for which the federal government is effectively the landlord for project sites. "There is no doubt that the trajectory of the US offshore wind industry will be impacted by the November election," Liz Burdock, chief executive of offshore wind industry group Oceantic Network, said. "Its outcome will influence how we maintain our momentum." Uncertainty around the US presidential election has dampened private investment in the sector this year, according to Oceantic. At the same time, companies say the industry has come a long way since 2016, with a handful of projects now operating, while recent macroeconomic challenges are subsiding. Furthermore, demand for offshore wind would continue at the state level, and these factors could make the industry more resilient to headwinds. Executive decisions Trump still could use the executive branch to "stonewall" sectors helped by the IRA in the absence of a repeal, including by influence the timing or distribution of IRA funds, according to Shepheard. He could shift regulators' priorities to new oil and gas development, which, along with other actions, could make resources such as combined-cycle natural gas plants more attractive than renewables. "The extent that renewables and other cleaner energy assets are competing with gas, that'll be the big change from a Trump administration," Shepheard said. At the same time, funding for onshore wind and solar is "relatively safe", and tax credits for hydrogen and carbon capture are on comparably firm ground because of support from the oil and gas industry, Shepheard said. Some companies have expressed cautious optimism that some elements of the IRA, such as the advanced manufacturing tax credit, will survive. The incentive is not only important for the solar supply chain but also offshore wind, as state-level solicitations often require developers to invest in local manufacturing. Republican states in the US southeast have already benefited from new factories springing up on the back of the credits. For example, Enel chose Oklahoma for a new new module plant , First Solar located a factory in Alabama and Qcells has expanded production in Georgia. Moreover, removing that carrot could leave the US solar industry reliant on Chinese companies, which could run afoul of Trump's protectionist trade instincts. Trump's campaign did not respond to multiple requests to elaborate on his policy plans. By Patrick Zemanek Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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