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EU lawmaker wants stricter shipping emissions measures

  • : Emissions, Natural gas, Oil products
  • 21/09/01

The EU should quickly and comprehensively address a predicted increase in greenhouse gas (GHG) and sulphur dioxide (SO2) emissions to make maritime shipping more sustainable, German member of the European Parliament Jutta Paulus said today, following a new EU report on the sector's environmental record.

The European Environment Agency (EEA) and the European Maritime Safety Agency (EMSA) today published a 212-page report examining the EU maritime sector's impact on the environment. Shipping accounts for 13.5pc of EU transport emissions. SO2 emissions from ships calling at EU, Icelandic and Norwegian ports were 1.63mn t in 2019, some 16pc of global SO2 emissions from international shipping.

The report noted that even if CO2 emissions from international maritime transport in the EU decreased by 17pc in 2005-15, they are projected to go up by 18pc by 2030 from 2015 levels, and by 39pc by 2050. This is "not in line" with the EU's economy-wide, climate-neutral objectives.

Paulus said the report reveals the "full" scale of environmental and climate impacts from maritime transport. "We need to quickly and comprehensively address the predicted increase in GHG and SO2 emissions to make maritime shipping more sustainable," she said.

"To date, maritime shipping has not been subject to any binding emission reduction measures. It is incomprehensible why the European Commission is planning to involve maritime shipping only gradually in the reform of the EU emissions trading system [ETS]," Paulus said. "There must be an end date for open scrubbers for exhaust gas purification, whose wastewater is simply discharged into the sea," she added.

She further called for parliament to established an Ocean Fund, financed using proceeds from maritime shipping's inclusion in the EU ETS, when negotiating the revision of the ETS with EU member states.

In July, the commission presented a range of legal measures that propose phasing maritime transport emissions into the EU ETS in 2023-25 and mandate a reduction in the GHG intensity of marine fuels.

Paulus is negotiating on behalf of parliament with EU member states over the revision of the EU's regulation on monitoring, reporting and verification (MRV) of CO2 emissions from shipping.

Also commenting on the report, EU environment commissioner Virginijus Sinkevicius said the maritime sector will produce "more and more" GHG emissions, air pollutants and underwater noise. He called for a "smooth but rapid" transition towards carbon neutrality.

Using data sent under the EU's MRV regulation, the EEA/EMSA report notes that shipping emissions contributed to 13.5pc of total EU GHG emissions from transport in 2018. The report also records ships calling at EU, Iceland, Norway and Liechtenstein emitting some 140mn t of CO2 in 2018, with container ships accounting for 44.2mn t of CO2, followed by bulk carriers (17.9mn t), oil tankers (17.8mn t), ro-pax ships (13.9mn t) and chemical tankers (9.1mn t). LNG carriers accounted for 5.5mn t of CO2. The report further underlined the impact of cargo-carrying capacity on CO2 emissions and a ship's technical energy efficiency.


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24/11/04

Mexico GDP outlook dims in October survey

Mexico GDP outlook dims in October survey

Mexico City, 4 November (Argus) — Private-sector analysts have again lowered their projections for Mexico's gross domestic product (GDP) growth this year, with minimal changes in inflation expectations, the central bank said. For a seventh consecutive month, median GDP growth forecasts for 2024 have dropped in the central bank's monthly survey of private sector analysts. In the latest survey conducted in late October, analysts revised the full-year 2024 growth estimate to 1.4pc, down from 1.46pc the previous month. The 2025 forecast also dipped slightly, to 1.17pc from 1.2pc. The latest revisions are relatively minor compared to the slides recorded in preceding surveys, suggesting negativity in the outlook for Mexico's economy may be moderating. This aligns with the national statistics agency Inegi's preliminary report of 1.5pc annualized GDP growth in the third quarter, surpassing the 1.3pc consensus forecast by Mexican bank Banorte. Inflation projections for the end of 2024 inched down to an annualized 4.44pc from 4.45pc, while 2025 estimate held unchanged at 3.8pc. September saw a second consecutive month of declining inflation, with the CPI falling to 4.58pc in September from 4.99pc in August. The survey maintained the year-end forecast for the central bank's target interest rate at 10pc, down from the current 10.5pc. This implies analysts expect two 25-basis-point cuts to the target rate, most likely at the next meetings on 14 November and 19 December. The 2025 target rate forecast held steady at 8pc, with analysts anticipating continued rate reductions into next year. The outlook for the peso remains subdued, following political shifts in June's elections that reduced opposition to the ruling Morena party. The median year-end exchange rate forecast weakened to Ps19.8 to the US dollar from Ps19.66/$1 in the previous survey. The peso was trading weaker at Ps20.4/$1 on Monday, reflecting temporary uncertainty tied to the US election. Analysts remain wary of Mexico's political environment, especially after Morena and its allies pushed through controversial constitutional reforms in recent months. In the survey, 55pc of analysts cited governance issues as the primary obstacle to growth, with 19pc pointing to political uncertainty, 16pc to security concerns and 13pc to deficiencies in the rule of law. By James Young Mexican central bank monthly survey Column header left October September Headline inflation (%) 2024 4.45 4.44 2025 3.80 3.80 GDP growth (%) 2024 1.40 1.46 2025 1.17 1.20 MXN/USD exchange rate* 2024 19.80 19.66 2025 20.00 19.81 Banxico reference rate (%) 2024 10.00 10.00 2025 8.00 8.00 Survey results are median estimates of private sector analysts surveyed by Banco de Mexico from 17-30 October. *Exchange rates are forecast for the end of respective year. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil launches reforestation plan


24/11/04
24/11/04

Brazil launches reforestation plan

Sao Paulo, 4 November (Argus) — The Brazilian government launched its plan to reforest 12mn hectares (29.6mn acres) with native vegetation by 2030 as part of its efforts to meet its emissions-reductions target under the Paris Agreement. Of the 12mn ha of reforestation projected, 9mn ha will be on properties currently not in compliance with the 2012 forestry code, which requires property owners to maintain standing forest on a percentage of their land. Depending on the biome, property owners are required to preserve 20-80pc of native vegetation. The government estimates that nearly 24mn ha of privately owned land is currently not in compliance with the forestry code. The plan also foresees 2mn ha of reforestation on public lands, including conservation preserves and areas controlled by indigenous peoples. The remaining 1mn ha of reforestation will take place on degraded land which will be converted to be used for low-carbon agriculture. The government will provide financing and technical support for the reforestation program. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Construction spending up in September, asphalt weakens


24/11/04
24/11/04

Construction spending up in September, asphalt weakens

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Saudi Luberef’s profit down on year in Jan-Sept


24/11/04
24/11/04

Saudi Luberef’s profit down on year in Jan-Sept

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Oil services upturn takes a pause for breath


24/11/04
24/11/04

Oil services upturn takes a pause for breath

New York, 4 November (Argus) — The boom in demand for oil field services is showing signs of wavering in the short term as international customers signal greater caution around spending and the outlook for US shale remains challenged. Upstream spending growth in the North American onshore market is expected to be flat in 2025, with low natural gas prices, drilling efficiencies and further consolidation among producers in the shale patch all exerting downward pressure. Given a mixed international outlook, one bright spot will be offshore markets, and deepwater in particular, according to investment management firm Evercore ISI. "The solid growth years of 2023 and 2024 are over as the cycle resets," senior managing director James West says. "We view 2025 as an aberration in a long-term, albeit slower, growth cycle." In the near term, the sector's attention will be focused on spending plans by top producers including state-run Saudi Aramco and Brazil's Petrobras, as well as any signs of a potential recovery in Chinese oil demand given the government's latest stimulus efforts to kick-start growth. The sector has had to contend with more than $200bn of shale mergers and acquisitions over the past year, which has shrunk the pool of available customers, and led to oil field services providers beginning their own round of consolidation. Moreover, with capital discipline remaining the rallying cry, significant productivity gains have enabled producers to do more with less. Its immediate challenges were put into stark contrast this week by oil's renewed plunge, this time on the back of Israel's decision to spare Iran's energy infrastructure from retaliatory strikes. SLB, the biggest oil field services contractor, has attributed recent price volatility to concerns over an oversupplied market owing to higher output from non-Opec producers, as well as questions over when the cartel will return barrels to the market and weak economic growth. That spurred some customers to adopt a "cautionary approach" when it came to activity and spending in the third quarter. Gas to the rescue But SLB remains upbeat over the long-term outlook, given the current emphasis on energy security, a key role for natural gas in the energy transition, and expectations that oil will remain a "large part" of the energy mix for decades to come. Gas investment remains robust in international markets, particularly in Asia, the Middle East and the North Sea. "While short-cycle oil investments have been more challenged, long-cycle deepwater projects globally and most capacity expansion projects in the Middle East remain economically and strategically favourable," SLB chief executive Olivier Le Peuch says. Exploration successes in frontier regions from Namibia to Suriname are also unlocking vast reserves that only serve to bolster confidence in the offshore market. Global offshore investment decisions will approach $100bn this year and in the next 2-3 years, adding up to more than $500bn for 2023-26, according to Le Peuch, representing a "growth engine for the industry going forward". Meanwhile, Baker Hughes expects to capitalise on a growing market for gas infrastructure equipment. The company forecasts natural gas demand will grow by almost 20pc by 2040, with global LNG demand increasing at a faster rate of 75pc. "This is the age of gas," chief executive Lorenzo Simonelli says. The top services firms see limited short-term growth prospects for North America, with the exception of the Gulf of Mexico. Hydraulic fracturing services provider Liberty Energy plans a temporary reduction in its fleet in response to slower customer activity and market pressures. And SLB says any potential pick-up in gas rigs could be offset by a further decline in oil rigs owing to efficiencies. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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