Cop: Cop28 DG says no red line on fossil fuel phase out

Spanish Market: Coal, Coking coal, Crude oil, Electricity, Emissions, LPG, Natural gas, Oil products, Petrochemicals
01/12/23

The Cop 28 UN climate conference presidency has no "red lines" when it comes to the language on fossil fuels in the negotiated text, director general Majid al-Suwaidi said today.

"Our job as a Cop presidency is not to have red lines," al-Suwaidi said. "We don't have red lines."

Al-Suwaidi was responding to a question about comments made earlier in the day by UN secretary general Antonio Guterres about the need to phase out, rather than phase down, the use of fossil fuels if the world is to avoid a climate disaster and meet the ambitions of the Paris climate agreement. That agreement sets a goal of limiting global warming to "well below" 2° above pre-industrial averages, and preferably to 1.5°C.

"We cannot save a burning planet with a firehose of fossil fuels," Guterres said. "We must accelerate a just, equitable transition to renewables. The science is clear. The 1.5°C limit is only possible if we ultimately stop burning all fossil fuels. Not reduce. Not abate. Phase out, with a clear timeframe aligned with 1.5°C."

Al-Suwaidi said the UAE, as president of Cop 28, has been "very clear" about the need to discuss energy and the energy system, and how the summit should deliver fossil fuel language. While many countries support a phase out of fossil fuel use, others, the UAE included, view hydrocarbons like oil and gas as having a role in the energy transition.

Cop 28 president Sultan al-Jaber has regularly argued for the need to include all forms of energy, including oil and gas, in the global energy mix, particularly until there is sufficient alternative energy capacity to take over from today's hydrocarbon-heavy baseload.

"It is not oil and gas, or solar. Not wind or nuclear, or hydrogen. It is oil and gas, and solar, and wind and nuclear, and hydrogen," al-Jaber said late last year. "It is all of the above, plus the clean energies yet to be discovered, commercialised and deployed. The world needs maximum energy, minimum emissions."

By Nader Itayim

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03/12/24

Williams to sue Energy Transfer over gasline fight

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Treasury eyes 45Z guidance before Biden exit

03/12/24

Treasury eyes 45Z guidance before Biden exit

New York, 3 December (Argus) — The US Department of Treasury said it still plans to issue guidance before president Joe Biden leaves office next year clarifying how refiners can qualify for a new tax credit for clean fuels. The agency "anticipates issuing guidance" around the Inflation Reduction Act's 45Z credit before 20 January to "enable producers to claim the 45Z credit for 2025", disputing a report today that the Biden administration planned on punting implementation to president-elect Donald Trump. The credit, set to kick off regardless on 1 January, will differ from some prior federal incentives by offering greater subsidies to fuels that produce fewer greenhouse gas emissions. Treasury did not commit to any definitive timeline for releasing guidance, and it did not immediately clarify how thorough any eventual rule would be. Companies in the biofuel supply chain say the current lack of clarity from Treasury — particularly on how it will calculate carbon intensities for various fuels and feedstocks — has slowed first quarter dealmaking. Government guidance could make or break the economics of certain plants, particularly for relatively higher-carbon fuels like soy biodiesel or jet fuel derived from corn ethanol. The US Department of Agriculture's timing for releasing a complementary rule to quantify the climate benefits of certain agricultural practices, envisioned as a way to reward refineries sourcing feedstocks from farms taking steps to reduce their emissions, is unclear. The agency said today that a "rulemaking process" in response to its request for information on climate-smart farm practices is "under consideration" but did not elaborate. Agriculture secretary Tom Vilsack had insisted earlier this year that his department would release some package before the end of Biden's term. Some industry groups remain pessimistic that the Biden administration will answer all of the thorny questions still lingering around the 45Z credit, especially given signals earlier this year that other Inflation Reduction Act programs would take priority. The Renewable Fuels Association, which represents ethanol producers, says final regulations around 45Z "seem highly unlikely" before the end of Biden's term but that it hopes Treasury releases at least some "basic information" or safe harbor provisions. Delays getting credit guidance could prod Congress to extend expiring biofuel incentives for another year, including a $1/USG credit for blenders of biomass-based diesel. Some formerly skeptical lobbying groups have recently come on board in support of an extension, fearing that biofuel production could slump next year given the lack of 45Z guidance and uncertainty about how Trump will implement clean energy tax credits. But four lobbyists speaking on background told Argus today that the proposal still faces long odds. Congress has various other priorities for its relatively brief lame duck session, including government funding and disaster aid, that take precedence over biofuels. A staffer with the Democratic-controlled US Senate Finance Committee said last month that Republicans have been reluctant to negotiate tax policy in a divided Congress this year when they are planning a far-reaching tax package under unified Republican control next year. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Argentina streamlines energy efficiency program

03/12/24

Argentina streamlines energy efficiency program

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Industry wary of Trump tariffs on Canada, Mexico

03/12/24

Industry wary of Trump tariffs on Canada, Mexico

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Mexico factory contraction eases in November

03/12/24

Mexico factory contraction eases in November

Mexico City, 3 December (Argus) — Mexico's manufacturing sector contracted again in November, but at a slower pace than the previous month, according to the Mexican finance executive association's (IMEF) latest purchasing managers index (PMI) surveys. The manufacturing PMI rose to 48.3 from 47.2 in October, inching closer to the 50-point threshold that signals expansion. Still, the index remained in contraction territory for an eighth consecutive month. "There is some stabilization in the loss of economic momentum recorded in previous months," IMEF noted, but the overall trend reflects "stagnation or the absence of solid expansion in both manufacturing and non-manufacturing sectors." Manufacturing accounts for about a fifth of Mexico's economy. Within the manufacturing PMI, the new order index increased by 1.3 points to 47.3 but stayed in contraction. Production fell by 0.5 points to 46.1, with both sub-indicators in contraction for an eighth month. In contrast, non-manufacturing industries—including services and commerce—moved into expansion territory, rising to 50.5 in November from 49.3 in October. New orders in this sector climbed 2.1 points to 51.5, production rose 1.8 points to 50.5 and employment rose by 1.2 points to 49.1, though it remained in contraction for a fifth consecutive month. Inflation concerns raised Looking ahead, IMEF highlighted potential inflationary pressures tied to US President-elect Donald Trump's policies. These include possible supply chain disruptions driven by escalating conflicts with Russia and in the Middle East as Trump shifts toward a more transactional approach with traditional allies. IMEF also warned that Trump may seek to influence the US Federal Reserve to accelerate rate cuts, further fueling inflation. Domestically, deregulation and tighter migration constraints may fail to ease trade bottlenecks. Meanwhile, tax cuts without corresponding spending reductions could add significant upward pressure on prices, IMEF said. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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