EIB survey points to rising climate adaptation concern

Spanish Market: Emissions
11/11/24

A survey from the European Investment Bank (EIB) found widespread support for "urgent" spending on adaptation — adjusting to the effects of climate change where possible.

A majority of respondents, at 85pc, agreed that "spending on climate adaptation is required urgently to avoid even higher costs in the future", the EIB said. And of the respondents, 80pc have experienced at least one extreme weather event in the past five years, the survey found — although that rises to 89pc in southern European countries. The EIB surveyed over 23,000 people across the EU in August.

The EIB found that 72pc of respondents — increasing to 81pc in southern Europe — "recognise that they will have to adapt their lifestyle due to climate change". And 35pc of respondents believe they will have to move to "a less climate-vulnerable place" to avoid extreme weather events such as floods or forest fires. More than half of EU respondents also agreed that their country should help vulnerable developing nations adapt to climate change.

Europe is the fastest-warming continent. And the World Meteorological Organisation (WMO) today said that 2024 is on track to smash last year's record and become the hottest year recorded.

The economic losses from "natural catastrophes" hit an estimate of $280bn in 2023, reinsurance company Swiss Re said today. Of this, $51.6bn was from floods, it added. Swiss Re noted "chronic underfunding", but said that the financial benefits from protective measures against flooding "can exceed costs for rebuilding after a disaster by up to ten times".

"Quantifying the benefits of adaptation measures is a key step towards facilitating public-private investment and ultimately closing the huge financing gap", Swiss Re chairperson of public sector solutions Veronica Scotti said.

The UN has put the gap between current levels of adaptation financing and the funding needed at $187bn-359bn/yr. Adaptation will be discussed at the UN Cop 29 climate conference, which started today in Baku, Azerbaijan. Cop 29 is scheduled to run until 22 November. Countries must decide on a new iteration of a climate finance goal. The topic of loss and damage — the irreversible and unavoidable effects of climate change — will also be addressed, in terms of financial and technical support for developing countries.

By Georgia Gratton

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12/11/24

California RD plant signals later start up

New York, 12 November (Argus) — An long-delayed project to convert a Bakersfield, California, oil refinery to produce renewable diesel (RD) has been given another extension for start up. Global Clean Energy Holdings, working to open a 15,000 b/d RD refinery, and trading house Vitol agreed last week to adjust the terms of a supply and offtake deal singed in June. The initial agreement said that Vitol could exit the agreement if the refinery was not producing at least 5,000 b/d of renewable diesel by the end of October, but that deadline has now been moved to 15 December. Global Clean Energy told Argus last month that it still has "plans in place to complete the remaining work and start up the facility" despite recently cancelling an agreement with its principal contractor. Vitol, after an initial three-year term, can now request up to three one-year extensions of the contract, up from two in the initial deal. The agreement, which cleared the way for former business partner ExxonMobil to exit, stipulates that Vitol will be the exclusive supplier of feedstocks to the plant and exclusive marketer of all fuel and environmental attributes. The revised agreement also says that if Global Clean Energy modifies its credit agreement to allow for more than $330mn in debt financing, then the renewable fuels producer will have to pay Vitol an additional fee that increases as more funds are borrowed. Global Clean Energy declined to clarify whether it had already triggered the obligation to pay Vitol the excess fee, saying that it could not provide more information ahead of filing its quarterly investor report "in the near future." If the plant begins operations as planned, it will have to contend with a challenging investment environment for biorefineries given recently low environmental credit prices and uncertainty around how president-elect Donald Trump will enforce a new federal clean fuels tax credit. At the same time, California regulators agreed last week to update the state low-carbon fuel standard, including by setting stricter carbon intensity targets that start next year. The regulatory updates lifted the prices of credits used for program compliance, which are a crucial source of revenue for companies bringing lower-carbon fuels like renewable diesel into the state. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: MDBs to up climate financing to $170bn/yr by 2030

12/11/24

Cop: MDBs to up climate financing to $170bn/yr by 2030

London, 12 November (Argus) — A group of leading Multilateral Development Banks (MDBs) estimated they could increase climate financing to $170bn/yr by 2030, they said today at the UN's Cop 29 climate conference in Baku, Azerbaijan. The group, made up of the World Bank and nine other MDBs including the European Investment Bank (EIB), today estimated their annual financing for low- and middle-income countries at $120bn/yr by 2030, of which $42bn for adaptation. For high income countries the group plans to reach financing of $50bn/yr, including $7bn for adaptation. The ten MDBs provided a total of $125bn of financing in 2023 , up on $100bn/yr in 2022. Of last year's funding $75bn went to low- and middle-income countries and $50bn to high-income countries. The MDBs hope to leverage an additional $130bn/yr of financing from the private sector, split equally between high-income countries on the one hand and middle- and low-income ones on the other. The split between private and MDB finance implies that the organisations are hoping to increase the efficiency with which they mobilise private finance, according to Melanie Robinson, Global Climate, Economics and Finance Director at NGO World Resources Institute. Financing from MDBs will be one of the main layers of climate financing contributing towards the New Collective Quantified Goal (NCGQ), a new goal on international climate financing for developing countries. Negotiations on the NCQG began today in Baku, with countries' positions "far apart," Robinson said. Participants' stances still differ on the amount of money which should be aimed for, and on which countries should contribute, which is to be expected at this stage of the negotiations, she said. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Brazil to release detailed 2035 climate plan

12/11/24

Cop: Brazil to release detailed 2035 climate plan

Baku, 12 November (Argus) — Brazil will release a detailed climate plan for 2035, covering all sectors of the economy, on 13 November, the country's environment minister Marina Silva said on the sidelines of the UN's Cop 29 climate summit in Baku, Azerbaijan. Brazil had already announced that it will reduce greenhouse gas (GHG) emissions by between 59-67pc by 2035, compared with 2005 levels , but had not released its new nationally determined contribution (NDC) — climate plan to be submitted to the UN Framework Convention on Climate Change (UNFCCC). The new NDC will include emissions reduction targets for the agriculture, transport and industrial sectors and will also reiterate the country's commitment to eliminating deforestation across all biomes, environment minister Marina Silva said. Brazil will seek to increase its agricultural output through productivity gains, rather than expansion into new areas. "We have the potential to double agricultural output without destroying the forest," she added. "We want to lead by example," Silva said. Brazil will host Cop 30 next year in Belem. Regarding the election of Donald Trump as US president, she pointed out that global efforts to protect the environment are not going to be diminished because of political cycles. "The US is an important country and the second largest CO2 emitter globally," Silva said, adding that many US states have "their own independent climate policies, which will not be suspended." Alongside Brazil, two countries have also announced new emissions reduction goals under their updated NDCs: the UAE and the UK . All Cop parties have to submit their 2035 NDCs by February next year. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Negotiators positive on remaining Article 6 talks

12/11/24

Cop: Negotiators positive on remaining Article 6 talks

Baku, 12 November (Argus) — Negotiators have a "positive attitude" towards outstanding talks on Article 6 of the Paris Agreement taking place at the UN Cop 29 climate conference in Baku, Azerbaijan, bolstered by the finalisation of crediting mechanism standards yesterday. The adoption of two key Article 6.4 standards on Monday night kicks off remaining talks on a very positive note, Switzerland's lead negotiator on international carbon markets under Article 6, Simon Fellermeyer, said. The approval has set the mood for remaining negotiations, lead Article 6 negotiator for New Zealand Jacqui Ruesga added. Article 6 of the Paris accord aims to help set rules on global carbon trade. Negotiators have already seen a more constructive attitude to discussions since the failed talks at Cop 28 in Dubai last December, Ruesga said. This was spurred on by disappointment at the lack of outcome last year, and supported by a number of informal meetings organised in the lead-up to June's Bonn climate conference, as well as increasing direction from heads of delegation on the subject. Divergence persists on some issues, but negotiators still have this positive attitude, Ruesga said. Different sides have also begun communicating the reasons behind their positions more clearly, Article 6 negotiator for Colombia Adriana Gutierrez added, which she hopes will help bring a result this year. Outstanding questions include how to deal with reporting inconsistencies and credit authorisations. Countries also still disagree on the question of whether Article 6.2's international registry should be capable of holding internationally transferable mitigation outcome (Itmo) units, or simply provide an accounting function. But talks on this point are progressing along the lines of deciding which potential functions of the registry could be integrated or dropped in the view of opposing sides, Ruesga said. The first ever Itmo transfer, which took place between Switzerland and Thailand earlier this year , would have been much easier through such a registry, Fellermeyer said. Gutierrez expects most remaining topics to be concluded ahead of Cop 30 in Belem, Brazil, next year. But some smaller, more technical elements are "bound to stick through" to the next summit, Ruesga said. There is not much appetite to reopen most elements for discussion next year, Fellermeyer said, meaning it could be that they are either concluded in Baku or left in a state of "constructive ambiguity". Agreement in Baku on the remaining Article 6 elements is important to give confidence to potential participants, Fellermeyer said, having encountered parties who declined to cooperate through the mechanism owing to a lack of visibility on the rules. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: UK sets ambitious 2035 climate target

12/11/24

Cop: UK sets ambitious 2035 climate target

London, 12 November (Argus) — The UK government has set a target to cut all greenhouse gas (GHG) emissions by at least 81pc by 2035, from a 1990 baseline, the country's prime minister Keir Starmer said today at the UN Cop 29 climate summit in Baku, Azerbaijan. The target, which will form the basis of the UK's next national climate plan, is in line with recent recommendations from the independent advisory Climate Change Committee . Energy minister Ed Miliband sought the committee's guidance shortly after the Labour government was elected in July. Starmer urged all countries to come forward with new national climate plans — known as nationally determined contributions (NDCs) — at Cop 29. Details of the UK's new NDC are not yet clear, but Starmer said his government is "fully committed" to its pledge of zero-emissions power by 2030. He also repeated his promise for a "government that trod lightly on people's lives". "The UK is stepping up as a climate frontrunner at a time when such leadership is critically needed, co-founder of think-tank E3G Nick Mabey said. "We hope to see detailed implementation plans — ideally with sectoral commitments and a supporting investment roadmap — to lend credibility to its submission." The energy transition "is a huge opportunity", Starmer said, pointing to global appetite for renewables investment. And he noted the "advantage of being a first mover". The country's Labour government, elected in July, has diverged substantially from the previous administration on climate issues. The UK government today announced a "clean industry bonus" — a provisional £27mn ($34.6mn) per GW of offshore wind, to incentivise offshore wind developers to invest in industrial areas, many of which are rooted in the oil and gas industry. This will boost "green jobs" and support sustainable industry, the government said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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