Republicans struggle to unite on climate message
Some Republicans in the US Congress are trying to get President Donald Trump to change his tune on climate change as they try to shift the party's messaging away from denying human activity is chiefly responsible for rising temperatures.
More rank-and-file Republicans say they want to find solutions to cutting greenhouse gases and adapting to the effects of warming temperatures. But Trump's skepticism of climate science is becoming an obstacle to unifying on "energy innovation" climate message they think will be more compelling to voters than Democratic proposals such as the Green New Deal.
Senator Lindsey Graham (R-South Carolina) said he wanted Trump to closely review the science, "admit climate change is real" and come up with solutions. Failure to agree that climate change is a problem will make it harder for Republicans to make their case to voters why innovation from the private sector is the best response to climate change, he said.
"We will win the solutions debate, but the only way you are going to win that debate is to admit you have got a problem," Graham said today during the launch of a new Republican caucus that will promote conservation and resolving environmental problems. Senators Lisa Murkowski (R-Alaska), the chairman of the Energy and Natural Resources Committee, and Cory Gardner (R-Colorado), who sits on the panel, are also members of the caucus.
Trump has long claimed climate change is a hoax, and his administration has been working to dismantle initiatives to reduce emissions. As recently as January, Trump mocked the idea of global warming because there was a cold snap.
"I believe there's a change in weather, and I think it changes both ways," he said in June.
But Trump's view is unpopular with voters. In a national poll of 1,008 adults, 62pc disapproved of how Trump is handling climate change, according to a poll that the Washington Post and ABC News released on 7 July. Trump gave a 45-minute speech on "environmental leadership" this week where he mentioned US reductions in carbon emissions but otherwise did not discuss climate change.
Republicans lawmakers have rallied around the idea that innovation — in areas such as carbon capture, nuclear energy and gas production — are the easiest way to cut greenhouse gas emissions. Democratic candidates who want to challenge Trump in 2020 instead say they want tighter regulations on greenhouse gases and increased deployment of renewable energy.
US oil and gas companies have been supporters of the idea that innovation, in the form of shale drilling technology that boosted production of cleaner-burning natural gas, is one of the most cost-effective ways to reduce greenhouse gases. ExxonMobil, BP, Shell, Total and other major producers also say they support a revenue-neutral carbon tax to address climate change.
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UK bitumen production at highest since July 2021
UK bitumen production at highest since July 2021
London, 2 July (Argus) — UK bitumen production in April hit its highest in nearly three years even though there is only one remaining bitumen-producing refinery in the country, in Eastham. The UK government's latest provisional data showed production at 68,000t in April, up by 7pc compared with the same month last year. Bitumen production declined overall last year by 147,000t on the year to just 373,000t, the lowest since records began in 1995, after UK energy company Prax Group ceased all bitumen production at its Lindsey refinery in the northeast of England in early 2023. In January-April this year, the UK produced 77,000t of bitumen, a decrease of 10,000t from the same period last year. UK consumption in April was at 122,000t, up 7,000t since the other refineries in the UK closed by April 2023. With the UK's general election taking place on 4 July, parties have made promises which could support bitumen consumption. The UK government this year committed £8.3bn ($10.52bn) to fill potholes and resurface roads by 2034, and the UK opposition party Labour last month pledged to keep this plan in place if elected while additionally funding councils £320m over five year by deferring the planned A27 Arundel bypass works in Sussex. Asphalt Industry Alliance (AIA) in March 2024 published a report stating that the total number of potholes filled in 2022 was 1.4mn, down from 1.7mn in 2021 and the equivalent of one every 22 seconds. Spending on pothole repairs fell to £93.7mn last year from £107.4mn in 2021. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Italy’s NECP eyes 11pc of power demand from nuclear
Italy’s NECP eyes 11pc of power demand from nuclear
London, 2 July (Argus) — Italy aims to generate at least 11pc of its power demand from nuclear energy by 2050 and could double that amount if necessary as part of efforts to meet its climate goals. In its new national energy and climate plan (NECP) sent to Brussels yesterday, Rome said its "conservative" scenario envisioned installing 8GW of nuclear power capacity using mainly small modular reactors but also fusion plants. Italy could build as much as 16GW of nuclear capacity depending on developments across the energy system, according to the document. The ‘with-nuclear' option would provide savings of around €17bn ($18.3bn) compared with not using it. It would also mean less gas consumption tied to carbon capture and storage (CCS) technology. Italy banned nuclear power in a referendum in 1987 after the Chernobyl disaster, but the current right-wing government of Giorgia Meloni has voiced its support for the technology. Last year it set up the national platform for sustainable nuclear power to map out a timeline for a possible return to nuclear power. In confirmation of targets set last year , Rome said it aimed to install a total of 131GW of renewable energy capacity by 2030, compared to 58GW in 2021, with a view to meeting 63pc of power demand and 39.4pc of total energy consumption. Most of the new capacity will be solar photovoltaic (PV), with 79GW expected to be installed driven by new subsidies and easier permitting. Wind capacity is expected to contribute 28GW, with offshore wind providing just 2.1GW. The plan envisages the development of contracts for difference (CfDs) through auctions for larger plants, as well as a framework to boost power-purchasing agreements (PPAs). Italy's NECP also maps out the development of electricity grids and cross-border interconnections. "The long-term risk is that the tight renewables penetration targets and the CfD mechanism established by the EU to deliver incentives could lead to a negative impact on spot prices, currently driven in Italy by the price of natural gas and carbon allowances," Italian broker Equita said. The current final revision of Italy's NECP comes after a cross-sector and public consultation. It was submitted to the European Commission for approval on 1 July, a day after the deadline required by EU law. By Steven Jewkes and Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Prompt European gasoline forward curve in contango
Prompt European gasoline forward curve in contango
London, 2 July (Argus) — Prompt Eurobob gasoline time spreads have entered a contango structure — where prompt values are at a discount to forward prices — signalling the weakest structure for the time of year since the pandemic year of 2020. July Eurobob swaps were at a 75¢/t discount to August swaps at the close on 1 July. The spread had been in a relatively shallow backwardation — when prompt prices are at a premium to later dates — in recent sessions, although it has been narrowing steadily from $6.50/t on 1 June. It is uncommon for the forward structure to be in contango at this time of year. In the corresponding session last year the July swap was at a $19/t premium to the August swap, and since 2009 the current scenario has occurred only twice — in 2020 when much of Europe was under Covid-19 lockdown measures, and in 2016 when the front of the curve was pressured by high European inventories and high US supply. The contango structure reached $5.50/t on both occasions. The recent move builds on weakness exhibited last month , when the front of the forward curve between June and July moved into contango, a structure which was maintained through the rest of June. Demand for gasoline has failed to meet traders' expectations this European summer. Stock levels have been robust, particularly in the US where high refinery utilisation rates have boosted supply and stifled the requirement for European product. This was shown in gasoline crack spreads to North Sea Dated crude in June , which moved sharply lower — counter-seasonally — to an average of $14.87/bl, $5.83/bl lower than in May and down by $9.68/bl compared with year ago. There are already signs of this reversing however. In early trading today the front of the forward curve strengthened, with July marked at parity to August, according to brokers. Discounts in the spot barge market at the Amsterdam-Rotterdam-Antwerp (ARA) hub have narrowed relative to August Eurobob swaps today, indicating firmer demand, with participants saying there is a more workable transatlantic arbitrage. By Jonah Sweeney Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Countries draft trade deal to address climate change
Countries draft trade deal to address climate change
London, 2 July (Argus) — Trade ministers for Costa Rica, Iceland, New Zealand and Switzerland have finished negotiations on a trade deal focused on tackling climate change, pollution and loss of biodiversity. The deal — the agreement on climate change, trade and sustainability (ACCTS) — will include an "ambitious" list of environmental goods, with a definition and criteria for updates, the ministers said. The agreement will eliminate tariffs on more than 300 goods, including solar panels, wind turbines, electric vehicles and wood products. It will also outline conservation and sustainability commitments for the production of such items. The agreement will also "contribute a meaningful definition of fossil fuel subsidies to international efforts", the ministers said. On these, there will be "clear prohibitions and a limited set of exceptions to safeguard fundamental policy goals", the ministerial statement added. Pledges to phase out fossil fuel subsidies by various countries, including the G7 and G20 groups, are long-standing. But subsidies for fossil fuels remain widespread and totalled $7 trillion in 2022, according to the IMF. The legal review of the text must be completed before it is signed, ratified and implemented, the ministers said. Their ambition is for the ACCTS to be "a pathfinder agreement that will drive momentum" at the World Trade Organisation, they added. Norway participated in all 15 rounds of negotiations and hailed the "great progress" made. But the country needs more time to assess the agreement, Norwegian foreign minister Espen Barth Eide 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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