Cop: Singapore, Zambia ink Article 6 carbon credit deal

Spanish Market: Emissions
19/11/24

Singapore and Zambia today signed an agreement at the UN Cop 29 summit in Baku, Azerbaijan to collaborate on carbon credits aligned with Article 6.2 of the Paris Agreement.

The countries will collaborate on a legally binding implementation agreement on carbon credits, which will include criteria and procedures for transfer under Article 6 of the Paris Agreement.

Article 6 of the Paris accord aims to help set rules on global carbon trade. And within it, Article 6.2 allows countries' governments to form bilateral agreements for carbon mitigation projects, the outcomes of which can be traded to contribute towards climate pledges. Mitigation refers to efforts to reduce greenhouse gas emissions causing global warming.

The agreement between Singapore and Zambia is also aimed at facilitating knowledge exchange on carbon credit mechanisms. The countries will jointly identify mutually beneficial carbon credit projects and develop the necessary infrastructure to enable these projects.

Singapore has entered into multiple carbon credit deals with other countries, but it has only signed implementation agreements with Ghana and Papua New Guinea.

Carbon credits are an "innovative source of finance," said Singapore's minister of sustainability and environment Grace Fu today at the summit. "We are working with partners to develop a well-functioning and credible carbon market, including through the co-facilitation of the Paris Agreement Article 6 negotiations, and building a pipeline of high-quality, high integrity credits," she said.

Singapore's National Climate Change Secretariat and the world's largest independent carbon credit registries Verra and Gold Standard last week released initial recommendations outlining the development of a carbon crediting protocol to implement Article 6.2. The recommendations are aimed at helping countries to use Article 6 to achieve their UN climate pledges and sustainable development goals, and provides recommendations on how governments can facilitate an effective Article 6.2 market.

If such a framework is not established, "countries could take divergent approaches, which could hinder the implementation, scaling and integrity of co-operation under Article 6.2," said Verra.

The protocol will be further developed and published once Cop 29 is concluded, said Verra. It will incorporate decisions from Cop 29 and will be implemented in 2025.

By Prethika Nair

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19/11/24

Lula urges rich nations to up climate ambitions

Rio de Janeiro, 19 November (Argus) — Brazil's president Luiz Inacio Lula da Silva today said developed nations must boost their climate efforts by presenting more ambitious targets for carbon neutrality. "I propose that the G20's developed nations bring forward their carbon neutrality target from 2050 to 2040 or 2045," Lula said in a speech on the second day of the G20 summit in Rio de Janeiro. "Without recognizing their historical responsibilities, rich nations will have no credibility to demand ambitious [actions] from other countries," he said. The G20 is responsible for 80pc of the world's greenhouse gas emissions. The Brazilian president also called on developing nations to present nationally determined contributions (NDCs) that cover all aspects of the economy. Brazil presented its new NDC at the UN Cop 29 climate summit in Baku last week, which aims to reduce 2035 emissions by 59-67pc from 2005 levels. Under the terms of the 2015 Paris Agreement, all signatory countries must present updated NDCs by next January. Lula also touted Brazil's deforestation efforts , saying that the country decreased forest cutting by 45pc in the last two years. He reaffirmed his pledge to end deforestation in the country by 2030. Energy transition was one of Brazil's three goals for its G20 presidency this year. The topic and climate change gained a more prominent spotlight in discussions once conversations on climate finance goals stalled at Cop 29. Developing nations will need at least $2.4 trillion/yr to adapt to climate change, accelerate carbon emissions mitigation and deal with climate disasters, the Interamerican Development Bank's climate change advisor Avinash Persaud said. As part of its G20 presidency, Brazil set up a disaster reduction group and a task-force to mobilize nations against climate change. The final G20 declaration includes 25 points on sustainable development, energy transition and climate action. Those include reaffirming support for Paris Agreement climate goals , the need for urgent action to "scale up and prioritize" economic adaptation to climate change, working towards facilitating low-cost financing for developing nations to transition to low carbon emissions and a reiterated commitment to boost efforts to phase out and rationalize fossil fuel subsidies. Brazil will look to continue its role as a leader of energy transition next year, when it will host Cop 30 in Belem, near the mouth of the Amazon River. By Constance Malleret and Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Countries join fossil fuel subsidy phase-out group

19/11/24

Cop: Countries join fossil fuel subsidy phase-out group

Baku, 19 November (Argus) — Colombia, New Zealand and the UK today joined a Netherlands-led international coalition focused on phasing out incentives and subsidies for fossil fuels. They made the announcement at the UN Cop 29 climate summit in Baku, Azerbaijan. The coalition was first formed at Cop 28 in December last year. Member countries that sign up to the coalition commit to publish an inventory of their fossil fuel subsidies a year after joining, and to develop a plan to phase them out. Countries agreed at Cop 26, in 2021, to phase out inefficient fossil fuel subsidies, and reaffirmed this a year later at Cop 27. G20 members first pledged in 2009 to do the same. But global fossil fuel consumption subsidies hit over $1.2 trillion in 2022 and more than $600bn in 2023, IEA data show. "We truly feel that this is something we should tackle at a European level as well", EU energy commissioner Wopke Hoekstra said today. "This is something the next Commission will push; this is something I will personally push", he added. New Dutch climate and green growth minister Sophie Hermans admitted that phasing out fossil fuel subsidies is a "sensitive topic", but that the country is working on a plan. The first step is to make transparent which fossil fuels subsidies are in countries' systems, she said. The coalition now has 16 members — Austria, Antigua and Barbuda, Belgium, Canada, Costa Rica, Denmark, Finland, France, Ireland, Luxembourg, the Netherlands, Spain and Switzerland, as well as the three countries that joined today. Four members have made their national inventory of fossil fuel subsidies transparent — Belgium, France, Ireland and the Netherlands. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Norway spending $740mn on Paris carbon credits

19/11/24

Cop: Norway spending $740mn on Paris carbon credits

Baku, 19 November (Argus) — Norway on Tuesday launched a new initiative to buy carbon credits from developing nations under the Paris climate agreement, which will help it meet its emissions goals while financing decarbonization in other countries. The Norwegian Global Emission Reduction Initiative, with initial funding of $740mn, will use Article 6.2 agreements — bilateral agreements on carbon mitigation projects — to support emissions mitigation actions in developing countries. This is in turn will generate Paris agreement carbon credits known as internationally transferred mitigation outcomes (Itmos). Norway can use the Itmos toward its Paris emissions targets. In addition, the country believes its use of the agreements will help close the financing gap for emissions reductions in developing countries. "By working together, we can raise our collective climate ambition and increase the speed of green growth", Norwegian environment minister Tore Sandvik said at the programme's launch at the UN Cop 29 climate talks in Baku, Azerbaijan. The first agreements under the initiative are with Benin, Jordan, Senegal and Zambia. Zambian officials said the country will use the money it receives to support a plan it launched earlier this year to build more renewables such as wind and solar, lessening its dependence on hydropower, which accounts for more than 80pc of its electricity generation. "Our anticipation for Article 6 is that it will be concluded and operationalised at this Cop 29 so that it becomes part of our core financing for grid connected renewable power generation", said Douty Chibamba, permanent secretary of the country's ministry of green economy and environment. Article 6 of the Paris accord aims to help set rules on global carbon trade. A number of final issues for implementing Articles 6.2 and 6.4 still need to be finalised in Baku, but countries are allowed already to enter into bilateral agreements. Zambia signed one with Sweden in August . Norway said the credits will help support its goal of becoming carbon neutral by 2030. The credits could also be used to cover any shortfall in the country's nationally determined contribution (NDC), or emissions reduction pledge, under the Paris Agreement in the event the EU does not meet its 55pc by 2030 reduction target. Norway is not a member of EU but is counting on cooperation between the two to achieve its NDC. Under Article 6.2 of the Paris agreement, an exported Itmo can no longer be put towards the project host country's NDC. Sandvik said the program will set strict requirements to ensure the integrity of projects "and includes strong safeguards against corruption and human rights violations." Funding for the program could increase beyond $740mn as early as next year, if Norway's parliament agrees to the government's budget request. Norway also pledged up to $100mn to a fund in collaboration with the Global Green Growth Institute (GGGI) that will help the country develop programs and manage payments when emissions reductions are achieved. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil scores modest wins in G20 declaration

19/11/24

Brazil scores modest wins in G20 declaration

Rio de Janeiro, 19 November (Argus) — Brazil scored some wins in the final 85-point joint statement issued by G20 leaders, but overall gains were modest. Brazil, which held the G20 presidency this year, managed to include all of its goals in the final G20 joint statement: a global pact to address hunger, changes to global governance, a call for comprehensive cease-fires in Gaza and Lebanon and reaffirming support for Paris Agreement climate goals . But Brazil's goals were too bold for the G20 leaders, according to Friederike Roder, vice-president of global policy and advocacy for Global Citizen, a non-governmental organisation (NGO) focused on tackling climate change, poverty and inequality. "Brazil brought its A-game. The G20 just couldn't keep up." The final joint statement includes "meaningful progress" on topics such as taxing the ultra-rich, but the rest of the G20 "failed to rise to the occasion," Roder added. Brazilian president Luiz Inacio Lula da Silva addressed G20 leaders on Monday, saying that a 2pc tax on the super-rich could generate $250bn/yr to tackle social and climate issues. The G20 leaders agreed to "seek to engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed," but did not draw any specifics. The biggest miss came in new collective quantified goal (NCQG) negotiations, Roder said. "G20 members have passed the buck yet again, leaving others to clean up the mess." G20 leaders pledged to commit to any successful NCQG negotiations at the UN Cop 29 climate summit in Baku, Azerbaijan. But those have stalled , summit president Mukhtar Babayev said. The joint statement will put pressure on negotiations in Baku, according to Viviana Santiago, the executive director of Oxfam Brasil, an NGO focused on economical, social, environmental and political justice. "This progress on international taxation also means that G20 governments must be champions of a $5 trillion climate finance target at Cop 29," Santiago said. "How can they argue that climate justice is unaffordable when a deal to raise trillions of dollars through taxation of the super-rich is on the table?" G20 leaders have sent a "clear message to their negotiators at Cop 29: to not leave Baku without a successful new finance goal," UN climate body UNFCCC executive secretary Simon Stiell said. The G20 summit continues today, with talks focused on the energy transition. Brazil will then pass on the G20 presidency to South Africa. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

G20 reaffirms support for Paris Agreement climate goals

19/11/24

G20 reaffirms support for Paris Agreement climate goals

Baku, 19 November (Argus) — G20 leaders have reaffirmed their support for the Paris Agreement climate goals, saying that they "fully subscribe" to the Cop 28 deal struck last year — which included language on transitioning away from fossil fuels. They also committed to "successful negotiations" on the new finance goal for developing countries at the UN Cop 29 summit in Baku, Azerbaijan. The G20 leaders' declaration released early today stated that parties "reaffirm our steadfast commitments, in pursuit of the objective of UNFCCC, to tackle climate change by strengthening the full and effective implementation of the Paris Agreement." The G20 summit is taking place in Brazil over 18-19 November, during the second week of the UN Cop 29 summit in Baku, Azerbaijan. G20 parties also "welcome and fully subscribe" to last year's Cop 28 deal and global stocktake. The first global stocktake was the main document to come out of Cop 28 last year, setting the path for the next few years, and it will be a five-yearly undertaking to measure progress against Paris Agreement goals. The deal included countries' agreement to "transition away" from fossil fuels, although today's G20 statement did not explicitly mention a reduction in consumption or production of coal, oil and gas. It reiterated support for the implementation of efforts to triple renewable energy capacity globally and double the global average annual rate of energy efficiency improvements. G20 countries said that they will intensify their efforts to achieve net zero emissions by or around mid-century, and stated that they encourage each other to bring forward net zero commitments. The document also states that parties "look forward to a successful new collective quantified goal (NCQC) outcome in Baku," and that the G20 pledges support for the Cop 29 presidency. Progress at Cop 29 towards agreeing a new NCQG has not been sufficient, said Cop 29 president Mukhtar Babayev on 18 November, urging G20 leaders to send "a positive signal of commitment". G20 leaders have sent a "clear message" to their negotiators at Cop 29, to not leave Baku without a successful new finance goal, said UN climate body UNFCCC executive secretary Simon Stiell, adding that "this is in every country's clear interests." "This is a positive signal from the G20, that despite their differences, they've reaffirmed their support for an agreement to be reached at Cop 29 on the new climate finance goal," said Greenpeace. G20's reaffirmation of the global stocktake is likewise welcomed as the group accounts for around 75pc of global emissions, giving it a responsibility to lead climate action, said Greenpeace. In line with Cop 29's focus on climate finance, the G20 also acknowledged that developing countries need to be supported in their transitions to low carbon emissions, and "we will work towards facilitating low-cost financing for them". The G20 also reiterated its commitment in the New Delhi leaders' declaration to boost efforts to phase out and rationalise inefficient fossil fuel subsidies that "encourage wasteful consumption," adding that the parties commit to achieving this. The G20 summit in India last year rolled over a commitment the group first made in 2009 to phase out fossil fuel subsidies, without updating this to a more ambitious target. G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US, the African Union and the EU. Argentina last week pulled its delegation from Cop 29 sparking concern that it may exit the Paris agreement. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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