Egypt to prioritise finance, 2030 goals at Cop 27

: Coal, Crude oil, Emissions, Natural gas, Oil products
22/01/17

The Egyptian presidency of UN climate summit Cop 27 will prioritise finance and mitigation as negotiations begin ahead of the event in November, and will push countries to set more ambitious emissions reduction targets for 2030.

"We emphasize the urgency of action required to address the gaps in ambition across mitigation, adaptation, loss and damage, and finance, and the importance of responding to the best available science in this respect," the Egyptian Cop 27 president Sameh Shoukry and UK Cop 26 president Alok Sharma said in a joint statement after meeting this weekend.

The UK and Egypt will work together to encourage countries to "revisit and strengthen their 2030 emissions target to align with Paris temperature goals", in reference to the goal to limit global warming to 1.5C from pre-industrial levels by 2050.

Many countries have set 2050 targets for reducing emissions or reaching net-zero but have been reluctant to set more ambitious targets for 2030. This indicates that diplomatic efforts in the run up to Cop 27 will focus on getting those countries' whose pathways are not in line with 1.5C goal — including China, Russia and India — to commit to action to reduce emissions this decade. There was no mention of fossil fuels or phasing out coal in the joint statement but the IEA's pathway for achieving 2050 climate goals suggests a coal phase-out in rich countries by 2030 and in poorer countries by 2040 is essential.

Germany, the new president of the G7, has made "energy and climate partnerships" with countries that are heavily dependent on fossil fuels one of its priorities. This could indicate more deals similar to the one signed with South Africa last year which commit to funding from richer countries in return for an agreement to phase out coal, but these deals are not part of the formal Cop summit agreements.

Sharma also met today with the UAE climate envoy Sultan al Jaber, who will likely be the Cop 28 president in 2023, to discuss "the energy transition and green jobs".

By Eleanor Green

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/04/02

Article 6 credits 'could provide CBAM cost flexibility'

Lisbon, 2 April (Argus) — Allowing the use of credits issued under Article 6 of the Paris climate agreement for compliance with the EU's carbon border adjustment mechanism (CBAM) could provide flexibility for developing countries that lack the capacity to set up their own carbon pricing systems in response to the measure, delegates at a conference in Lisbon, Portugal, heard today. The CBAM regulation provides for a carbon price already paid on a product in its country of origin to be deducted from CBAM costs, providing an incentive for countries importing products covered by the measure to the EU to introduce equivalent carbon pricing systems. But developing countries often lack the capacity to enact such policies, the chief sustainability and innovation officer at ACT Group, Federico di Credico, told delegates, and allowing the use of Article 6 credits for compliance could provide an alternative. This could in one form take place implicitly, di Credico said, if CBAM liabilities are adjusted down in relation to pricing systems that themselves allow some compliance using Article 6 credits. An example of this is Singapore, where 5pc of the country's carbon tax can be offset through the purchase of Article 6 internationally traded mitigation outcomes (Itmos). A more direct inclusion of Article 6 credits for compliance could entail a calculation on a euro-for-euro basis, di Credico suggested, for example reducing a CBAM liability of €100 to €50 if the importer has purchased €50-worth of Article 6 credits. Using a tonne-for-tonne basis would not work because the CBAM is not volume based, he said. But the uncertainty surrounding Article 6 credits means that their inclusion would bring an added layer of complexity to the CBAM, Cedric de Meeus of cement producer Holcim said. Article 6 credits are not usable in the EU emissions trading system (ETS), which forms the reference price for the CBAM, he pointed out, while not all activities producing Article 6 credits would be equivalent to the deep decarbonisation being carried out by European industry. It remains unclear how the EU will take into account carbon prices in other jurisdictions for the purposes of the CBAM. The CBAM regulation includes the ability to credit a "carbon price… effectively paid in the country of origin" but does not define what falls within this term, and the implementing regulation that will provide further detail on the matter has not yet been tabled. Article 6 of the Paris deal provides for two carbon pricing mechanisms allowing countries to collaborate voluntarily to reduce their emissions. Article 6.2, which is already fully operational, produces Itmos through bilateral agreements on emissions reduction or removal projects, while Article 6.4 establishes the soon-to-be-implemented Paris Agreement Crediting Mechanism (Pacm), a UN-regulated global carbon crediting system. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Transition technology draws energy R&D spend: IEA

25/04/02

Transition technology draws energy R&D spend: IEA

London, 2 April (Argus) — Public and corporate spending on energy research and development (R&D) is "trending upwards", with a focus on "low-emissions" technology, but venture capital investment in energy start-ups dropped last year, energy watchdog the IEA found. Government and corporate energy R&D spending increased to $50bn and over $160bn, respectively, in 2023 — the latest year for which full data are available, the IEA said. There are "early indications of continued growth in 2024", although the pace of growth has "slowed slightly" since 2022, it added. But "the momentum of investing in low-emissions energy technologies has been maintained", partly on the back of climate policy goals, the IEA noted. The share of "low-emissions" energy R&D spending has held at "roughly four-fifths of the global total" in recent years, the IEA said. It defines low-emissions energy as renewable power, grids and storage, energy efficiency, nuclear and "low-emissions fuels". Venture capital investments in energy start-ups totalled around $27bn in 2024, 23pc lower on the year, the IEA found. This reflects the "cyclical nature" of venture capital, as well as a drop in funding owed to inflation, but the trend "could have long-term negative impacts as innovators struggle to scale up high-potential technologies without access to affordable capital", the watchdog noted. The IEA also suggested that "the situation is compounded by uncertainties about political commitments to the climate policies that many start-ups depend on to drive demand". But venture capital financing rose in 2024 for start-ups focused on nuclear, synthetic fuels and carbon capture, use and storage (CCUS), it found. CCUS and "novel CDR" — carbon removal — technologies have drawn more venture capital funding in recent years, and sector R&D "is being spurred on by private capital mobilised by carbon credits", the IEA said. There are multiple ways to capture and store CO2, but many are at very early stages, while most funding goes towards just two approaches — direct air capture and bioenergy with CCS, its report found. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s gas leaders hit out at market intervention

25/04/02

Australia’s gas leaders hit out at market intervention

Sydney, 2 April (Argus) — Senior figures in Australia's upstream gas sector have hit out at plans for intervention in the heavily regulated industry, as debate continues on how to best address domestic supply shortfalls later this decade. The federal Coalition in March announced National Gas Plan including a 50-100 PJ/yr (1.34bn-2.68bn m³/yr) domestic reservation system aimed at forcing the three LNG exporters based in Queensland's Gladstone to direct more supply to the eastern states' market. But oversupplying the market to drive down prices would destroy the viability of smaller gas projects, Australian independent Beach Energy's chief executive Brett Woods said at a conference in Sydney on 1 April. The domestic-focused firm, which will export some LNG volumes via its Waitsia project in 2025, warns that such a move by the Peter Dutton-led opposition would reduce export incomes while harming Australia's international reputation. The volumes impacted by the policy could reach around 900,000-1.8mn t/yr. Expropriation of developed reserves is equivalent to breaking contracts with LNG buyers and with the foreign and local investors that the country needs for ongoing economic security, Woods said on 1 April. Domestic gas reservation systems put in place by the state governments of Western Australia (WA) and Queensland, designed to keep local markets well supplied, were "clearly supportable", Woods said, but only future supply should be subject to the regulations. LNG terminals, which represent about 70pc of eastern Australia's total gas consumption and shipped 24mn t in 2024 , should not be blamed for the failure of governments to expedite new supply and plan for Australia's gas future, head of Shell Australia Cecile Wake said in response to the Coalition's proposal. Shell's QGC business supplied 15pc of its volumes to the local grid, with the remainder shipped from its 8.5mn t/yr Queensland Curtis LNG project, Wake added. Canberra has moved to promote gas use as a transition fuel to firm renewable energy in line with its 2030 emissions reduction targets, but progress has been slow as reforming laws appear to be hampering development . The state governments, particularly in gas-poor Victoria and New South Wales (NSW), must recognise the need for locally-produced supply and streamline the approvals processes, especially environmental permits, executives said. But despite pleas for an end to years of interventionist policy — including the governing Labor party's measures to cap the price of domestic gas at A$12/GJ , Australia's fractured political environment and rising cost of living has sparked largely populist responses from its leaders. A so-called "hung" parliament is likely to result from the 3 May poll , with a variety of mainly left-leaning independents representing an anti-fossil fuel agenda expected to control the balance of power in Australia's parliament. LNG debate sharpens Debate on the causes of southern Australia's gas deficit has persisted, and the ironic outcome of underinvestment in gas supply could be LNG re-imports from Gladstone to NSW, Victoria and South Australia, making fracked coal-bed methane — liquefied in Queensland and regasified — a likely higher-emissions alternative to pipeline supply. Several developers are readying for this possibility , which is considered inevitable without action to increase supply in Victoria or NSW, increase winter storages or raise north-south pipeline capacity. Australian pipeline operator APA appears to have the most to lose out of the active firms in the gas sector. APA chief executive Adam Watson this week criticised plans for imports, because relying on LNG will set the price of domestic gas at a detrimental level, raise emissions and decrease reliability of supply, Watson said. The firm is planning to increase its eastern pipeline capacity by 25pc to bring new supplies from the Bass, Surat and Beetaloo basins to market. But investment certainty is needed or Australia will risk needing to subsidise coal-fired power for longer if sufficient gas is unavailable to back up wind and solar generators with peaking power, Watson said. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India's IOC cuts jet fuel prices by 6pc for April

25/04/02

India's IOC cuts jet fuel prices by 6pc for April

Mumbai, 2 April (Argus) — Indian state-controlled refiner IOC has reduced jet fuel prices by 6pc effective from 1 April. IOC cut prices in Mumbai, capital New Delhi, Kolkata and Chennai by 6pc from a month earlier. Prices vary from state to state depending on local taxes. Asian jet fuel margins — or Singapore jet fuel swaps against Dubai crude values — averaged $13.04/bl in March, down from $15.23/bl in February. India's jet fuel consumption stood at 203,100 b/d in March, up by 5pc on the year, provisional data from the oil ministry show. By Roshni Devi Jet fuel prices in India Rupees/kl City Apr-25 Mar-25 m-o-m % Delhi 89,441.18 95,311.72 -6 Kolkata 91,921.00 97,588.66 -6 Mumbai 83,575.42 89,070.03 -6 Chennai 92,503.80 98,567.90 -6 Source: IOC Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil’s Bauna oilfield restarts after maintenance

25/04/02

Brazil’s Bauna oilfield restarts after maintenance

Sydney, 2 April (Argus) — Brazil-focused Australian oil and gas company Karoon Energy has brought its Bauna oilfield in the offshore Santos basin back on line after the completion of intervention works at its SPS-88 well in February. Production resumed on 27 March after the project was shut down for maintenance on 7 March, Karoon said. The field's output has since reached about 26,500 b/d, above pre-shutdown levels because of the return of SPS-88 well production on 28 March. The well is pumping 2,000 b/d of oil on a restricted choke and is gradually being opened further, with rates in line with expectations. The intervention was originally planned for October-December 2024 after being taken off line in November 2023 because of a mechanical blockage in the gas lift valve. Karoon's plans to acquire the Cidade de Itajai floating production, storage and offloading (FPSO) unit at its Bauna oilfield have progressed, with the transaction on track to close as forecast in April. Selection of a new operations and maintenance contractor for the FPSO will be announced in mid-2025, with an updated cost guidance to be provided once terms are agreed. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more