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EU settles its Cop 27 position

  • : Emissions
  • 22/10/24

EU environment ministers today agreed the bloc's negotiating position for international talks at the Cop 27 UN climate conference, to be held in Sharm El Sheik, Egypt from 7-18 November.

In the agreed text, which sets the mandate for the European Commission to negotiate at Cop 27, ministers tread carefully on loss and damage, but call for promptly strengthening existing institutions providing "support" and delivering "concrete" solutions.

The European Parliament last week called for greater EU ambition, including a "loss and damage" financing facility, to be agreed at Cop 27. Parliament's non-binding resolution calls for increased EU climate targets with concrete binding measures and a treaty on "non-proliferation" of fossil fuels.

Dutch climate and energy minister Rob Jetten said it is too early to talk of finance for loss and damage.

"Let's start first by recognising that there's loss and damage," he said, noting Dutch firms' contribution with "their deep experience in water management and climate adaptation". Jetten said ministers had agreed on taking an "open position" on loss and damage for Sharm El Sheik.

The conclusions forming the basis for the EU's negotiating mandate also reconfirm continued bloc and member-state commitment to accelerating energy transition by "phasing down unabated coal power generation, by phasing out inefficient fossil fuel subsidies, by rapidly scaling up the deployment of clean power generation and energy efficiency".

Commission executive vice president Frans Timmermans said there is "misunderstanding" about increased coal-burn for short-term energy security as an effect of Russia's war on Ukraine.

"Even if we use a bit more coal today, we'll be going much faster in our energy transition. On balance, emissions will reduced even faster than before," he said, stressing renewables' role in bolstering energy security.

Timmermans said the EU must be ambitious to "build bridges" with developing countries.

"We have some ideas to make sure adaptation and loss and damage are addressed in a way that developing countries see as positive," he said.

Austrian climate and energy minister Leonore Gewessler called for the EU to send a strong signal to major emitters that Europe is still sticking to stated climate ambition even in the face of short-term energy security concerns. Germany's special envoy for international climate action Jennifer Morgan wants Cop 27 to close the gap between projected emissions cuts and greater climate-finance solidarity. Specific points for Morgan were a global phase-out for coal.

"With a strong EU position, we can work together with developing countries to get to a successful Cop in Sharm El Sheik," said Morgan.

"It's really important that Europe makes clear that, even if a degree of short-term flexibility is necessary, this is something absolutely temporary for energy security reasons with some countries now increasing coal consumption," said Spain's ecological transition minister Teresa Ribera.


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24/11/22

Cop: Developing nations reject first finance offer

Cop: Developing nations reject first finance offer

Baku, 22 November (Argus) — Developing countries at the UN Cop 29 climate summit in Baku, Azerbaijan have rejected the first climate finance amount put forward by developed nations, and are mulling counter-offers. A revised draft text for a new climate finance goal was released earlier today. Parties are negotiating the next iteration of the $100bn/yr that developed countries agreed to deliver to developing nations over 2020-25 — known as the new collective quantified goal (NCQG). The new text stated that developed nations should contribute $250bn/yr by 2035 in climate finance for developing countries. This is up from the previous $100bn/yr that developed countries agreed to deliver over 2020-25, but still a fraction of the 1.3 trillion/yr that developing countries have been calling for. "The [$250bn/yr] offered by developed countries is a spit on the face of vulnerable nations like mine," said Panama's representative Juan Carlos Monterrey Gomez. "They offer crumbs while we bear the dead," he said, adding that the amount offered is "outrageous, evil and remorseless." There is still "a lot to fight for," said a delegate from Honduras, as others suggested that major edits to the text are likely. The negotiating block the Alliance of Small Island States (Aosis) pointed out that the text ignores minimum allocation floors for small island developing states (Sids) and least developed countries (LDCs) of at least $39bn/yr and $220bn/yr, as proposed at the start of the summit. The LDCs also complained that "rich" members of the group of 77 (G77) — a UN coalition of developing nations —insisted on no carve-outs for the poorer and most vulnerable countries, according to a Somalian delegate. The proposed $250bn/yr will severely stagnate climate action efforts and does not raise the bar from the previous ineffective $100bn/yr goal, the Aosis group said. "We cannot be expected to agree to a text which shows such contempt for our vulnerable people." Counter-offer A UN-mandated finance expert group indicated that the figure put forward by developing countries "is too low" and not consistent with the goals of the Paris Agreement. The group's analysis shows that the new finance goal for developing countries, based on the components that it covers, should commit developed countries to provide at least $300bn/yr by 2030, and $390bn/yr by 2035. "We believe that these targets are feasible," the group said. Brazil indicated that the country is now pushing for these targets. The final amount for the new finance goal could potentially be around $300bn-350bn/yr, a Somalian delegate told Argus. Developed nations, in contrast, offered more muted responses. "It has been a significant lift over the past decade to meet the prior goal [of $100bn/yr]," said a senior US official, and the new goal will require even more ambition and "extraordinary reach." A delegate from Norway told Argus that the text is "something to work on" and that they were "happier than yesterday." "We should leave Baku with a goal that at least gets to $300bn/yr by 2035," said climate think-tank WRI's finance programme director Melanie Robinson. "This is achievable with projected finance, further reforms and shareholder support at multilateral banks, and some growth in bilateral funding," she said. By Prethika Nair and Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Blenders credit extension stalled in US Senate


24/11/22
24/11/22

Blenders credit extension stalled in US Senate

New York, 22 November (Argus) — A push for US lawmakers to extend various biofuel incentives before the end of the year has met resistance in the Senate. A growing coalition of biofuel and soybean groups has endorsed extending for one year a $1/USG federal tax credit for blenders of biomass-based diesel, which would otherwise expire after December and be replaced by the Inflation Reduction Act's carbon-intensity-based "45Z" credit. But lawmakers have various other priorities in the final weeks of this legislative session, and a staffer with the Democratic-controlled US Senate Finance Committee confirmed that prospects for a deal to extend biofuel tax credits are slim. "Republicans have showed very little interest in working with Democrats on much of anything related to tax," said Ryan Carey, chief communications advisor and deputy policy director at the Committee on Finance. "Their focus is primarily on the next Congress, when they're going to attempt to pass an extension of the first Trump tax law on a partisan basis." Another Senate office acknowledged on background that it is "unlikely" Congress will come to any major tax deal before the end of the year. Congress has other priorities for its brief lame duck session before president-elect Donald Trump begins his second term, including government funding, the federal debt limit, and a new farm bill. Tax policy could still fit into an end-of-year package, with some less controversial tax provisions and a bipartisan business tax proposal backed by Senate Finance Committee chair Ron Wyden (D-Oregon) still under discussion. But prolonging the biodiesel blenders credit — plus other biofuel credits benefiting sustainable aviation fuel and cellulosic fuels that some groups have also pushed to extend — appears to be a tougher lift. With Trump in the White House and Republicans set to control both chambers of Congress, Republicans are now preparing major tax policy legislation next year to prolong tax cuts passed during Trump's first term that are set to expire at the end of 2025. Lawmakers are likely to look at repealing some Inflation Reduction Act clean energy subsidies to help offset the cost of that proposal. Republicans on the House tax-writing committee this week requested public input on the 45Z credit specifically, a signal that they are at least open to modifications — and are already looking to tax policy next year. Biofuel subsidies are seen by analysts and lobbyists as less likely targets for repeal than other Inflation Reduction Act credits, given support for the industry among farm state lawmakers. But the request-for-information this week suggested that Republicans are wary of elements of the current 45Z credit and could support changes that benefit agribusiness. Even biofuel groups generally supportive of the 45Z credit's structure have been frustrated by President Joe Biden's administration, which has yet to issue guidance clarifying how it will calculate the carbon intensities of different fuels and feedstocks. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Decision on 2026 host unlikely in Baku


24/11/22
24/11/22

Cop: Decision on 2026 host unlikely in Baku

Washington, 22 November (Argus) — A decision on which country will host the UN Cop 31 climate talks in 2026 may not come until next year, as Australia and Turkey vie to be the next host. Draft decision text released on Friday at Cop 29 in Baku, Azerbaijan, would punt the decision and call on western European and other States to accelerate their consultations" and be prepared to present an offer to host in June 2025. Australia formally bid in 2022 to host Cop 31 and had little competition other than Turkey, which has refused to back down. Pushing the decision to next year would shorten the amount of time the eventual host has to prepare. But Azerbaijan won its hosting duties [only last year] at Cop 28 in Dubai. Brazil, the host of Cop 30, had its bid accepted in May 2023 . Under the UN Framework Convention on Climate Change (UNFCCC), Turkey is part of a grouping of western European countries, while Australia is in a group of "other states" that also includes Canada, Iceland, New Zealand, Norway, Switzerland and the US. The Australian delegation in Baku did not immediately respond to a request for comment. The draft text said that Cop 32 will be held in an African country from 8-19 November 2027. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Drafts point to trade-off on finance, fossil fuels


24/11/22
24/11/22

Cop: Drafts point to trade-off on finance, fossil fuels

Baku, 22 November (Argus) — The new draft on the climate finance goal from the UN Cop 29 climate summit presidency has developed nations contributing $250bn/yr by 2035, while language on fossil fuels has been dropped, indicating work towards a compromise on these two central issues. There is no mention of fossil fuels in either the new draft text on the global stocktake — which follows up the outcome of Cop 28 last year, including "transitioning away" from fossil fuels — or in the new draft for the climate finance goal. Developed countries wanted a reference to moving away from fossil fuels included, indicating that not having one would be a red line. The new draft text on the climate finance goal would mark a substantial compromise for developing countries, with non-profit WRI noting that this is "the bridging text". Parties are negotiating the next iteration of the $100bn/yr that developed countries agreed to deliver to developing nations over 2020-25 — known as the new collective quantified goal (NCQG). The new draft sets out a figure of $250bn/yr by 2035, "from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources". It also notes that developed countries will "take the lead". It sets out that the finance could come from multilateral development banks (MDBs) too. "It has been a significant lift over the past decade to meet the prior, smaller goal... $250bn will require even more ambition and extraordinary reach," a US official said. "This goal will need to be supported by ambitious bilateral action, MDB contributions and efforts to better mobilise private finance, among other critical factors," the official added. India had indicated earlier this week that the country was seeking around $600bn/yr for a public finance layer from developed countries. Developing countries had been asking for $1.3 trillion/yr in climate finance from developed countries, a sum which the new text instead calls for "all actors" to work toward. The draft text acknowledges the need to "enable the scaling up of financing… from all public and private sources" to that figure. On the contributor base — which developed countries have long pushed to expand — the text indicates that climate finance contributions from developing countries could supplement the finance goal. It is unclear how this language will land with developing nations. China yesterday reiterated that "the voluntary support" of the global south is not part of the goal. The global stocktake draft largely focuses on the initiatives set out by the Cop 29 presidency, on enhancing power grids and energy storage, though it does stress the "urgent need for accelerated implementation of domestic mitigation measures". It dropped a previous option, opposed by Saudi Arabia, that mentioned actions aimed at "transitioning away from fossil fuels". Mitigation, or cutting emissions, and climate finance have been the overriding issues at Cop 29. Developing countries have long said they cannot decarbonise or implement an energy transition without adequate finance. Developed countries are calling for substantially stronger global action on emissions reduction. By Georgia Gratton and Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Singapore, Peru finalise carbon credit negotiation


24/11/22
24/11/22

Cop: Singapore, Peru finalise carbon credit negotiation

Baku, 22 November (Argus) — Singapore and Peru have concluded negotiations on an implementation agreement for carbon credit co-operation aligned with Article 6 of the Paris Agreement, at the UN Cop 29 climate summit in Baku, Azerbaijan. The countries "substantively concluded negotiations" on 21 November, said Singapore's ministry of trade and industry. The collaboration is aimed at unlocking additional mitigation activities and scaling solutions to advance both countries' climate ambitions. Under the implementation agreement, a framework for the generation and international transfer of Article 6-compliant carbon credits will be established. The framework will include criteria and procedures for transfer between both countries. Negotiators in Baku appear close to a final agreement on Article 6 , which aims to help set rules on global carbon trade. Article 6.2 already allows countries' governments to form bilateral agreements for carbon mitigation projects, the outcomes of which can be traded to contribute towards climate pledges. Mitigation refers to efforts to reduce greenhouse gas emissions causing global warming. "When the agreement is signed, we look forward to the private sector utilising this agreement to develop carbon credits projects to actualise concrete environmental outcomes," said Singapore's minister for sustainability and environment Grace Fu. The minister is also one of the facilitators, alongside New Zealand, for negotiations on Article 6. Singapore also signed an implementation agreement with Zambia on 19 November at the summit. It has multiple carbon credit deals with other countries, but has only signed implementation agreements with Zambia, Ghana and Papua New Guinea so far. Singapore's National Climate Change Secretariat and the world's largest independent carbon credit registries Verra and Gold Standard last week released initial recommendations outlining the development of a carbon crediting protocol to implement Article 6.2. The recommendations are aimed at helping countries to use Article 6 to achieve their UN climate pledges and sustainable development goals, and provides recommendations on how governments can facilitate an effective Article 6.2 market. If such a framework is not established, "countries could take divergent approaches, which could hinder the implementation, scaling and integrity of co-operation under Article 6.2," said Verra. The protocol will be further developed and published once Cop 29 is concluded, said Verra. It will incorporate decisions from Cop 29 and will be implemented in 2025. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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