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UAE updates NDC with more ambitious GHG emission target

  • : Crude oil, Emissions
  • 22/09/13

The UAE has raised its greenhouse gas (GHG) emissions reduction target to 31pc by 2030, from 23.5pc previously, in an updated edition of its second Nationally Determined Contribution (NDC) under the Paris Agreement.

This will oversee a reduction in GHG emissions of 93.2mn t of carbon dioxide equivalent (CO2e) versus the business as usual case which is projected to produce 301mn t of CO2e, assuming a "moderate annual economic growth rate based on historical trends".

The UAE said it plans to deliver this more ambitious target by focusing on five priority sectors — electricity, transport, industry, waste management and carbon capture, utilisation and storage (CCUS).

The country also reiterated its pledge to boost its adaptive capacity and climate resilience by engaging in initiatives including the conservation and restoration of coastal ecosystems, such as the Abu Dhabi Blue Carbon Demonstration Project, and tree-planting drives. The UAE plans to plant 100mn mangrove seedlings by 2030.

These amendments to its emissions reduction targets were expected after the UAE's minister for climate change and environment, Mariam Almheiri said in March that the UAE would soon update its NDC.

Abu Dhabi said this was in response to a call by the Glasgow Climate Pact, a main outcome of the last UN Climate Conference (COP26), for countries to strengthen the ambition of their 2030 NDCs by the end of this year.

The UAE is broadly focused on decarbonisation, such as expanding its carbon capture and storage (CCS) facility to sequester 5mn t/yr of CO2, up from 800,000 t/yr, as well as ramping up renewables to reach its goal of net zero emissions by 2050. It has pledged to develop capacity of up to 14GW of solar and nuclear power by 2030.

But as a major oil producer, both globally and within Opec, the UAE has said that it has no plans to stop producing oil "as long as the world is demanding it".

Almheiri also said in March that consumers should not expect hydrocarbon-producing countries to decrease supply in order to force a reduction in demand. "We all have a part to play," and it is "important that we look at our habits and our lives," she said.

The UAE produced 3.18mn b/d of crude in August, according to the latest Argus Opec+ production survey, in line with its production target under the Opec+ agreement. But the UAE's crude production capacity is above 4mn b/d today, a figure it plans to increase to 5mn b/d by 2027.


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24/07/26

US Treasury, Brazil agree on climate pact

US Treasury, Brazil agree on climate pact

Sao Paulo, 26 July (Argus) — The US Treasury and Brazil's finance ministry will work together on a climate agenda, the countries said during a G20 working group meeting in Rio de Janeiro. The pact will focus on four fronts: bolstering clean energy supply chains, including developing policy tools to attract private sector investment; supporting efforts to improve voluntary carbon markets; securing financing and developing "innovative solutions" to conserve and restore nature and biodiversity, including through the multilateral development banks and climate funds; and facilitating countries' access to multilateral climate funds resources. The partnership was announced on Friday by both Brazil's finance minister Fernando Haddad and US Treasury Secretary Janet Yellen. "Advancing work on climate and on nature and biodiversity can bring benefits not only to both of our economies but also to the region and to the global economy," Yellen said. Haddad added that the two countries "want to work together more closely." The G20 — which is presided by Brazil this year — is holding this week the finance leaders' meeting. The group announced on Thursday a new fund to finance sustainability programs in the Amazon rainforest. This is also not the first time the G20 has discussedbe easing access to climate funds. A working group said in May that both countries and individual cities' access to such resources needs to be easier. The G20 announced other joint agreements this week, including the taxation of large fortunes and efforts to reduce inequality, poverty and world hunger. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazilian banks, IDB plan new Amazon fund


24/07/26
24/07/26

Brazilian banks, IDB plan new Amazon fund

Sao Paulo, 26 July (Argus) — Brazil's three state-owned banks — Caixa, Banco do Brasil and development bank Bndes — and the Inter-American Development Bank (IDB) are planning to launch a new fund to finance sustainability programs in the Amazon forest, they said on Thursday. The plan is to establish an Exchange Traded Fund — to be called ETF Amazon For All — and distribute quotas before the UN Cop 30 climate summit, which will be held in Brazil's Para state, near the mouth of the Amazon, in November 2025. The fund's investment portfolio will be made up of fixed-income securities issued by the three Brazilian banks. The return offered to investors will be based on a reference index to be created. All the funds raised by the three institutions will be allocated to loans for sustainable projects in the Amazon. "This cooperation, aimed at joining efforts in favor of the Amazon's sustainable development and based on an innovative instrument in the Brazilian capital market, reinforces Bndes' commitment to the Cop 30 agenda," the bank's president Aloizio Mercadante said. The fund is "another step towards ensuring that the Amazon" lasts forever, IDB's president Ilan Goldfajn said. The announcement was made during a G20 meeting attended by finance ministers and central bank presidents in Rio de Janeiro this week. Brazil is presiding over G20 this year. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Eni confident on 2024 output, but Libya project slips


24/07/26
24/07/26

Eni confident on 2024 output, but Libya project slips

London, 26 July (Argus) — Executives at Italy's Eni are confident it will achieve the upper end of its 1.69mn-1.71mn production guidance for this year, but start-up of a key Libyan project is set to slip from 2026 into 2027. In a presentation of second-quarter earnings today, A&E Structure was one of two Libyan projects on a list of Eni's upcoming start-ups through to 2028 that will deliver some 740,000 b/d of oil equivalent (boe/d) of net production to the company. A&E Structure is a 160,000 boe/d gas development that will include some 40,000 b/d of liquids production, mainly condensate. A&E Structure is central to Libya's ability to sustain gas exports to Italy, which have dropped in recent years on a combination of rising domestic consumption and falling production. Supplies through the 775mn ft³/d Greenstream pipeline hit their lowest since the 2011 revolution in 2023, averaging 250mn ft³/d. The slide has continued since, with year-to-date volumes of around 160mn ft³/d on track for a record low. Eni's other upcoming Libyan project — the Bouri Gas Utilisation Project development that aims to capture 85mn ft³/d of gas at the 25,000 b/d offshore Bouri oil field — had already been pushed back from 2025 to 2026. For 2024 Eni expects to be "at the upper boundary of its guidance", according to chief operating officer of Natural Resources Guido Brusco. The company had a strong first half, during which output was 1.73mn boe/d — 5pc up on the year — thanks to good performance at assets in Ivory Coast, Indonesia, Congo (Brazzaville) and Libya. Brusco said Eni is in the process of starting up its 30,000 boe/d Cassiopea gas project in Italy, with first production expected next month, and the 45,000 b/d second phase of the Baleine oil project in Ivory Coast is expected to start by the end of this year. At Baleine, Brusco confirmed the two vessels to be used at phase two "will be in country in September and, building on the experience of phase one, we expect a couple of months of final integrated commissioning" before first oil. Eni also said today it would raise its dividend for 2024 by 6pc over 2023 to €1/share, and confirmed share repurchases this year of €1.6bn. It said there is potential for an additional buyback of up to €500mn, which is being evaluated this quarter. Eni's debt gearing is scheduled to fall below 20pc by the end of the year. Chief financial officer Francesco Gattei said these accelerated share buybacks would be possible if divestment deals are confirmed. By Jon Mainwaring and Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

South Africa adopts climate change law


24/07/25
24/07/25

South Africa adopts climate change law

Cape Town, 25 July (Argus) — South Africa's president Cyril Ramaphosa has signed into law the country's climate change bill, which sets out a national response to climate change for the first time. The new climate change act will enable the orderly reduction of greenhouse gas (GHG) emissions through the implementation of sectoral emission targets towards South Africa's commitment to reach net zero by 2050. Currently, the country is the 15th largest GHG emitter in the world, according to the World Resources Institute. The law provides policy guidelines to ensure South Africa reaches its nationally determined contribution (NDC) under the Paris climate agreement by assigning individual enterprises carbon budgets and facilitating public disclosure of their progress. In its updated 2021 NDC, the country has undertaken to cut its GHG emissions to 350mn-420mn t of CO2 equivalent (CO2e), equivalent to 19-32pc below 2010 levels, by 2030. The lower end of this range is in line with the Paris Agreement's 1.5°C global warming threshold. To meet this, South Africa will have to achieve a steep decline in coal-fired electricity generation. A carbon tax is seen as a vital component of the country's mitigation strategy, according to the president. "By internalising the cost of carbon emissions, carbon tax incentivises companies to reduce their carbon footprint and invest in cleaner technologies, and also generates revenue for climate initiatives," Ramaphosa said. South Africa's carbon tax was introduced in a phased approach in June 2019 at a rate of 120 rands/t ($7/t) of CO2 equivalent (CO2e) and increased to R134/t of CO2e by the end of 2022. But tax-free allowances for energy-intensive sectors such as mining, and iron and steel, along with state-owned utility Eskom's exemption, implied an initial effective carbon tax rate as low as R6-48/t of CO2e. South Africa's National Treasury is targeting an increase to $30/t of CO2e by 2030. But the extension of phase one from the end of 2022 to the end of 2025, together with an uncertain future price trajectory and lack of clarity on future exemptions, means the effective carbon tax rate is likely to remain well below the IMF's recommended $50/t of CO2e by 2030 for emerging markets. The new climate change act seeks to align South Africa's climate change policies and strengthen co-ordination between different departments to ensure the country's transition to a low-carbon and climate-resilient economy is not constrained by any policy contradictions. It outlines South Africa's planned mitigation and adaptation actions aimed at cutting GHG emissions over time, while reducing the risk of job losses and promoting new employment opportunities in the emerging green economy. The law also places a legal obligation on provinces and municipalities to ensure climate change risks and associated vulnerabilities are acted upon, while providing mechanisms for national government to offer additional financial support for these efforts. The new act formally establishes the Presidential Climate Commission (PCC) as a statutory body tasked with providing advice on the country's climate change response. Among other things, the PCC is developing proposals for a just transition financing mechanism, for which a platform will be launched in the next few months. Over the last three years, South Africa has seen an increase in extreme weather events often with disastrous consequences for poor communities and vulnerable groups. To address the substantial gap between available disaster funds and the cost of disaster response, the government announced in February that it would establish a climate change response fund. At the time of the announcement, Ramaphosa reiterated that South Africa would undertake its just energy transition "at a pace, scale and cost that our country can afford and in a manner that ensures energy security". Elaine Mills Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Yemen warring factions reach UN-mediated financial deal


24/07/25
24/07/25

Yemen warring factions reach UN-mediated financial deal

Dubai, 25 July (Argus) — The UAE today welcomed a UN-mediated agreement between Yemen's warring factions that could allay economic woes in the impoverished country. The UAE's ministry of foreign affairs hailed the 23 July announcement of an agreement between the internationally recognised Yemen presidential leadership council (PLC) and the Houthi militant group "with respect to airlines and the banking sector." The UAE, alongside Saudi Arabia, support the PLC. The agreement stipulates "cancelling all the recent decisions and procedures against banks by both sides and refraining in the future from any similar decisions or procedures," and calls for the resumption of Yemenia Airways' flights between Sana'a and Jordan at three a day and operating flights to Cairo and India "daily or as needed." The deal was reached two days after Israeli jets bombed the Houthi-controlled Red Sea port of Hodeidah. The internationally-recognised central bank in Aden in April ordered financial institutions to move their main operations from Houthi-held territory within 60 days or face sanctions. That deadline ran out in June, leading to a ban on dealing with six banks whose headquarters remained in Houthi-held Sana'a. The Houthis retaliated by taking similar measures against banks in PLC-held areas and seized four Yemenia Airways planes at Sana'a airport. The PLC said it hoped the Houthis would also meet a commitment to resume crude exports. Yemen's crude production collapsed soon after the start of the country's civil war, from around 170,000 b/d in 2011-13 to 50,000-60,000 b/d in 2022, according to the BP Statistical Review of World Energy. Data from analytics firm Kpler suggests Yemen has not exported any crude since October 2022. Threats yield results The Iran-backed Houthis earlier in July threatened to attack vital infrastructure such as airports and ports in Saudi Arabia, holding Riyadh responsible for decisions taken by Aden's central bank. The Houthis struck central Tel Aviv on 19 July, inviting an Israeli retaliation that took out a power station that supplies the Red Sea coastal city of Hodeidah and its port and fuel tanks, which are controlled by the Houthis. A breakthrough in the UN-mediated talks between the PLC and the Houthis resulted in the agreement on 22 July, a possible sign that Riyadh might have compromised to avoid a Houthi escalation. The Houthis have been attacking commercial ships in and around the Red Sea since November last year, six weeks after the breakout of the Israel-Hamas war, in what they say is an act of solidarity with Palestinians in Gaza. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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