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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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25/01/15

IEA warns of supply squeeze from Russia, Iran sanctions

IEA warns of supply squeeze from Russia, Iran sanctions

London, 15 January (Argus) — The IEA sees a slightly tighter oil market this year than it previously forecast and said new US sanctions on Russia and Iran could further squeeze balances. The outgoing administration of US President Joe Biden announced additional sanctions on Russia's energy exports earlier this month, and moved to tighten sanctions on Iran's oil exports in December. "We maintain our supply forecasts for both countries until the full impact of sanctions becomes more apparent, but the new measures could result in a tightening of crude and product balances," the IEA said today in its latest monthly Oil Market Report (OMR). But the effect of incoming US President Donald Trump on Russian and Iranian supply remains a key variable. As things stand, the IEA projects a 720,000 b/d supply surplus this year — showing a well cushioned oil market. This is around 230,000 b/d less than its previous forecast. For 2024, the IEA's balances show a small supply surplus of 20,000 b/d. The Paris-based agency sees global oil supply growing by 1.8mn b/d to 104.7mn b/d in 2025, compared to growth of 1.9mn b/d in its December report. Almost all of the 2025 growth — 1.5mn b/d — will come from non-Opec+ countries such as US, Brazil, Guyana, Canada and Argentina. The IEA continues to assume all current Opec+ cuts will remain in place this year, although the alliance plans to start increasing output from April. The IEA said global oil supply grew by 650,000 b/d in 2024. The agency sees global oil demand growing by 1.05mn b/d, down by 30,000 b/d from its December forecast. This should see oil demand reach 104.0mn b/d, with most of the gains driven by "a gradually improving economic outlook for developed economies, while lower oil prices will also incentivise consumption." China, which has long driven global oil demand growth but whose economy is now slowing, will add 220,000 b/d in 2025, compared with 180,000 b/d in 2024 and 1.35mn b/d in 2023. But the IEA revised up its oil demand growth estimates for 2024 by 90,000 b/d to 940,000 b/d. This was mostly due to better-than-expected growth in the fourth quarter, which at 1.5mn b/d was highest since the same period in 2023 and 260,000 b/d above than its previous forecast. This increase was mostly due to lower fuel prices, colder weather and abundant petrochemical feedstocks, the IEA said. The IEA said global observed oil stocks increased by 12.2mn bl in November, with higher crude stocks on land and water offsetting refined product draws. It said preliminary data show a further stock build in December. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New York to propose GHG market rules in 'coming months’


25/01/14
25/01/14

New York to propose GHG market rules in 'coming months’

Houston, 14 January (Argus) — Draft rules for New York's carbon market will be ready in the "coming months," governor Kathy Hochul (D) said today. Regulators from the Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) "will take steps forward on" establishing a cap-and-invest program and propose new emissions reporting requirements for sources while also creating "a robust investment planning process," Hochul said during her state of the state message. But the governor did not provide a timeline for the process beyond saying the agency's work do this work "over the coming months." Hochul's remarks come after regulators in September delayed plans to begin implementing New York's cap-and-invest program (NYCI) to 2026. At the time, DEC deputy commissioner Jon Binder said that draft regulations would be released "in the next few months." DEC, NYSERDA and Hochul's office each did not respond to requests for comment. Some environmental groups applauded Hochul's remarks, while also expressing concern about the state's next steps. Evergreen Action noted that the timeline for NYCI "appears uncertain" and called on lawmakers to "commit to this program in the 2025 budget." "For New York's economy, environment and legacy, we hope the governor commits to finalizing a cap-and-invest program this year," the group said. State law from 2019 requires New York to achieve a 40pc reduction in greenhouse gas (GHG) emissions from 1990 levels by 2030 and an 85pc reduction by 2050. A state advisory group in 2022 issued a scoping plan that recommended the creation of an economy-wide carbon market to help the state reach those goals. By Ida Balakrishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

California GHG rulemaking hits speedbump


25/01/14
25/01/14

California GHG rulemaking hits speedbump

Houston, 14 January (Argus) — The California Air Resources Board (CARB) cap-and-trade program rulemaking is likely to weather further delays, according to one of the agency's top officials. The agency's "immediate" responsibility is to work with covered entities impacted by the ongoing Los Angeles County wildfires across its programs, according to deputy executive officer Rajinder Sahota. This means that the rulemaking is not "imminent or in the next few weeks." In addition, the agency needs to move carefully given the federal administration change , along with the negative response to proposed updates to the state's Low Carbon Fuel Standard received last year. CARB continues to evaluate program changes, with a focus on affordability, ambition and compliance costs. "We want to take time to ensure we get out foundational facts about the program especially as the legislature takes up the post-2030 role of the program," Sahota said. The cap-and-trade rulemaking has been marked by a series of delays, as regulators initially in 2023 estimated it would finish last year. In December , CARB said it would delay the publication of draft amendments until early 2025. CARB began to prepare for the rulemaking nearly two years ago, floating the idea of moving the cap-and-trade program to a more-stringent 2030 greenhouse gas (GHG) reduction target of a 48pc, compared with 1990 levels, rather than the current 40pc mandate. The agency's 2022 Scoping Plan prompted the idea as it showed a need for increased program ambition for California to remain on track for its target of net-zero by 2045. In line with this increased ambition, CARB will need to remove at least 180mn metric tonnes (t) of allowances from the 2026-2030 auction and allocation annual budgets to start with, and up to 265mn t in total from the program budgets from 2026-2045, agency staff have said. Quebec, California's partner in the Western Climate Initiative (WCI) carbon market, previously delayed publishing its draft package from the originally planned September 2024 to the first quarter of this year, with implementation expected in the spring. While the regulation was nearly complete in late September, the Quebec Environmental Ministry decided to postpone, citing the need to wait for California. If California delays its work through the first quarter of the year, this will likely require Quebec to also push back its rulemaking. This will also shorten the runway for both market partners to formally implement changes by 2026. The news has punctured the bullish sentiment for market participants on a timely end to the rulemaking. California carbon allowances for December delivery initially traded as high as $35.25/t on the Intercontinental Exchange (ICE) ahead of the announcement. The contract traded as low as $33.01/t after midday on Nodal Exchange following the news, before sliding lower in later trade. Outside of the WCI, Washington is also likely to see a slowdown in its carbon market ambitions. The state Department of Ecology is conducting its own rulemaking to align Washington's "cap-and-invest" program to facilitate linkage with the larger WCI market. But it will require California and Quebec to finalize their expected changes. California has indicated over last year that it does not intend to focus fully on linkage until its current rulemaking is complete. California's and Quebec's cap-and-trade programs cover major sources of the state's GHG emissions, including power plants and transportation fuels. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada's tariff response may be ‘unprecedented’: Ford


25/01/14
25/01/14

Canada's tariff response may be ‘unprecedented’: Ford

Calgary, 14 January (Argus) — Tariffs threatened by president-elect Donald Trump against Canada will hurt the province of Ontario the most, the premier of the country's most populated province said this week, so all options must be considered should retaliation be required. "We have to use all the tools possible," said Ontario premier Doug Ford in 13 January press conference, less than one week before Trump's inauguration and the potential imposition of 25pc tariffs on imports from Canada and Mexico. "We might have to do things that are unprecedented," which could include withholding shipments of minerals, Ford said. Ontario accounts for about 40pc of Canada's gross domestic product (GDP) and is known for its manufacturing, automotive and critical mineral industries. Ford's position runs in contrast to comments made earlier by Alberta premier Danielle Smith that cutting off Canadian energy flows to the US is a non-starter and would not happen . "Well, that's Danielle Smith, she's speaking for Alberta, she's not speaking for the country," Ford said. "I'm speaking for Ontario, that's going to get hurt a lot more. They aren't going to go after the oil, they're coming after Ontario." "I want to ship him more critical minerals, I want to ship him more energy, but make no mistake about it, if they're coming full-tilt at us I won't hesitate to pull out every single tool we have until they can feel the pain," Ford said. "But that's the last thing I want to do." Smith met with Trump at his Mar-a-Lago estate in Florida over the weekend, which was a welcome move by Ford, who said he has been working the phones calling American politicians daily. Even so, Canada's response needs to come from the federal government, which has so far been lacking, in Ford's view. "This is their jurisdiction," said Ford. "They need to come up with a strong plan. They need to be doing everything, every single day to make sure we avoid these tariffs." Premiers will meet with prime minister Justin Trudeau this week to strategize how to deal with potential tariffs. Trudeau said last week he planned to resign amid low polls and party infighting with a new leader to be chosen on 9 March. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US tariffs on Canada likely, oil cut-off not: Alberta


25/01/13
25/01/13

US tariffs on Canada likely, oil cut-off not: Alberta

Calgary, 13 January (Argus) — Tariffs threatened by the US against Canada will become a reality, according to the premier of oil-rich Alberta , but any retaliation will not entail cutting off energy exports. "They're likely to come in on January 20th," Alberta premier Danielle Smith said of the tariffs on Monday after she met with US president-elect Donald Trump at his Mar-a-Lago estate in Florida over the weekend. "I haven't seen anything that suggests that he's changing course." Trump in late-November said he plans to impose a 25pc tariff against all imports from Canada, citing inadequate border controls and a US trade deficit. Canada has since pledged to spend more money on border security while Smith reckons Canada would have a deficit if not for energy trade. "We actually buy more goods and services from the US than they buy from us," Smith said in an online interview with reporters. "We actually have $58bn in a trade deficit with the Americans when you take energy out." Smith wanted assurances the US is still interested in buying Canadian oil and gas, with her province being the heart of the country's energy sector. "Oil and gas is going to be key for being able to get a breakthrough, once the tariffs do come in, in getting them off," said Smith. Canadian foreign affairs minister Mélanie Joly said in a 12 January interview broadcast on CTV that the country could consider stopping the flow of Canadian energy in retaliation to tariffs. But Smith said that would not happen since the oil are owned by the province, not the federal government. "[The federal government] will have a national unity crisis on their hands at the same time as having a crisis with our US trade partners," said Smith. About 80pc of Canada's 5mn b/d of crude production is consumed by refineries in the US, with many in the Midcontinent having no practical alternative , according to the American Fuel and Petrochemical Manufacturers (AFPM). The region imported 2.7mn b/d of Canadian crude in October, the latest data point from the Energy Information Administration (EIA). "I hope cooler heads prevail," said Smith, adding that Trump seemed interested in buying more oil and gas. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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