EU parliament sets out position ahead of Cop 28

: Crude oil, Emissions, Natural gas
23/11/07

The European Parliament's environment committee today approved a draft resolution calling for accelerated action to meet the goals of the Paris climate agreement, increase international climate finance and end fossil fuel subsidies, as well as boost renewable energy and biodiversity.

The text, which still needs to be adopted by the whole parliament later this month, calls for developed countries including EU member states to ensure the annual climate finance goal of $100bn/yr is met in 2023. Wealthy nations agreed in 2009 to provide $100bn/yr in climate finance to developing countries for mitigation — cutting emissions — and adaptation — adjustments to avoid global warming impacts — by 2020. Although the goal has not been met yet, some countries suggested that it will be reached this year.

The resolution also said that Cop 28 should progress discussions on a new post-2025 climate finance target that goes "beyond this amount". Developed and developing countries have started discussions to set a new climate finance target moving from the $100bn/yr goal by 2025, with negotiations scheduled to conclude next year at Cop 29. The EU parliament will send a delegation from 8-12 December to the UN climate summit Cop 28, which starts at the end of this month.

The resolution said that a fund for loss and damage — the irreversible and unavoidable effects of climate change — should be made "operational" at Cop 28 and ensure "new, additional, adequate and predictable funding" is available. The text said that loss and damage funding should "prioritise grants and be additional to and distinct from humanitarian aid". MEPs said "that all major emitters, including EU countries, should be ready to contribute their fair share to the fund."

It repeated a call to "urgently end all direct and indirect fossil fuel subsidies as soon as possible and by 2025 the latest", adding that "fossil fuels are the largest contributors to climate change, responsible for over 75pc of all greenhouse gases emissions". The resolution noted that fossil energy subsidies in the EU have remained stable since 2008 at around €55bn-58bn/yr ($59bn-61bn), which is the equivalent to around one-third of all energy subsidies in the EU.

Other points in the draft resolution support a global target for tripling renewable energy and doubling energy efficiency by 2030, with a "tangible" phase out of fossil fuels as soon as possible to maintain within reach of a target of retaining global warming to within 1.5°C of pre-industrial average global temperatures. The EU parliament supports "halting" all new investments in fossil fuel extraction.

EU environment ministers approved a negotiating mandate for the European Commission at Cop 28 earlier this year, which also included a call to phase out fossil fuels, triple installed renewable energy capacity to 11TW and double of the rate of improvement in energy efficiency by 2030. European Commission president Ursula von der Leyen said earlier this year that unabated fossil fuels need to be phased out "well before 2050".

By Dafydd ab Iago

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24/11/19

UK launches global clean power group at G20

Rio de Janeiro, 19 November (Argus) — UK, Brazil and 10 other countries have signed on to a new initiative to support renewable power project development in both developed and developing countries. The Global Clean Power Alliance, launched during the G20 summit in Rio de Janeiro, Brazil, by UK prime minister Keir Starmer, aims to have countries share expertise to meet UN Cop 28 climate summit commitments to triple renewable energy and double energy efficiency. The alliance will "... accelerate the transition to clean energy, reduce energy bills, increase energy security and reduce emissions around the world," Starmer told journalists at the G20 summit. Among the first of several 'missions' the alliance will tackle to address energy transition challenges will be the finance mission, which will co-chaired by Brazil. It will "harness the political leadership needed to unlock private finance on a huge scale, so that no developing country is left behind," the UK said. "Brazil signing up to our finance mission is a huge vote of confidence ahead of the crucial Cop 30 summit in Belem next year," British energy minister Ed Miliband said. Other alliance members are Australia, Barbados, Canada, Chile, Colombia, France, Germany, Morocco, Norway, Tanzania, the African Union. The US and the EU are also expected to join the initiative. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Small signs of movement, G20 backs climate action

24/11/19

Cop: Small signs of movement, G20 backs climate action

Baku, 19 November (Argus) — A small shift in some finance discussions was perceptible today at the UN Cop 29 climate summit, as talks entered the second day of the political stage, and after G20 leaders reiterated support for climate action. But talks on mitigation — reducing emissions — still appear rocky and dependent on progress on the finance goal. A leaders' declaration from the G20 summit , which firmly backed the Paris climate agreement and action to tackle climate change, appeared to have provided some support to talks. The group committed to "successful negotiations" on the new finance goal for developing countries under discussion at Cop 29. G20 members also pledged to intensify efforts to reach net zero emissions by or around mid-century. The climate finance goal, known as the new collective quantified goal (NCQG), is the focus of this year's Cop. Developed countries committed to deliver $100bn/yr in climate finance to developing nations over 2020-25, and all countries must now decide on the next iteration of this. Talks were stalling , with little change in position heard. Developing countries are broadly calling for $1.3 trillion/yr, while developed countries have not suggested an amount. But there could be some possible movement on the contributor base. The UN climate body the UNFCCC uses a list of developing and developed countries from 1992, with 24 countries plus the EU on the latter. Several developed countries have argued for a wider contributor base, while several developing countries argue that they already provide finance. Argus understands that some developing countries, including China, have softened their stance on the issue. Any outcome is highly likely to denote contributions from UNFCCC-designated developing countries as voluntary, and the lists are not likely to be changed. There is still space for a robust outcome on mitigation, a developed country representative said. But it is not clear where this could be covered if the official channel, the mitigation work programme, fails. There was little progress during meetings today on the programme, and there is little space elsewhere to cover mitigation topics. The Cop 29 presidency has said that it is not planning to produce a cover text — which can cover any issues not officially on the summit agenda. While mitigation could be covered in a follow-up to last year's global stocktake text, several countries are concerned about this option. Language related to mitigation, including transitioning away from fossil fuels and phasing out fossil fuel subsidies, is currently mentioned in the draft text for the NCQG. Developed countries are likely to push for this language to stay — especially if mitigation talks falter — but countries including Saudi Arabia have long opposed this. By Georgia Gratton, Prethika Nair, Rhys Talbot, Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

LNG diversions to Europe reach double digits

24/11/19

LNG diversions to Europe reach double digits

London, 19 November (Argus) — At least 11 LNG carriers have likely diverted to Europe from Asia and Egypt over the past week, as European delivered prices now offer higher returns than Asian delivered prices, and operational issues delay deliveries in Egypt. Of the 11 cargoes, seven have diverted away from sailing for Asia round the Cape of Good Hope towards Europe, and four have diverted from Egypt, judging by shiptracking data from Vortexa (see table) . This does not include the 173,400m Myrina , which was idling in the mid-Atlantic today. One carrier — 174,000m³ Aristos I — had already passed the Cape of Good Hope, before turning back towards the Atlantic basin. Assuming all carriers are holding full cargoes, this totals around 860,000t, or 13.2TWh of LNG. Northwest European delivered prices rose above corresponding northeast Asian prices last week , prompting diversions from Asia to Europe. The inter-basin arbitrage was already closed, although firms with surplus shipping capacity that they viewed as a sunk cost because of long open vessel lists were still willing to send Atlantic basin cargoes to Asia as the opportunity cost of the longer journey time was limited to the cargo loss through higher boil-off during the voyage. But Europe's discount to Asia has narrowed, and even inverted late last week, with the spread between the two markets less than the boil-off cost difference between US deliveries to Europe and to Asia, incentivising diversions to Europe. The extra boil-off losses amount to around 39¢/mn Btu when shipping a cargo from Sabine Pass to Incheon via the Cape of Good Hope instead of Rotterdam, assuming a northeast Asian delivered price of $14.05/mn Btu, a sailing speed of 17 knots and a 160,000m³ cargo with a 0.1pc daily boil-off rate. The Argus Northeast Asia (ANEA) January delivered price closed at a 49¢/mn Btu premium to the northwest European December des price on 7 November, enough to incentivise deliveries to northeast Asia instead of Europe for firms with sunk shipping capacity as the spread was wider than boil-off losses. But the ANEA January price on 14 November fell to a discount to prompt northwest European des prices, incentivising diversions to Europe. And four carriers have diverted away from Egypt, where delays to a tight delivery schedule have been created by operational issues at the country's 6mn t/yr Ain Sukhna terminal, according to market participants. One of the terminal's two regasification trains has been experiencing operational difficulties, halving the terminal's regasification capacity, they said. The country last imported a cargo on 16 November — nine days after the previous delivery. The terminal's Hoegh Galleon floating storage and regasification unit has a peak regasification rate of 750mn ft³/d (7.7bn m³/yr), equivalent to about 16,500 t/d, meaning that it could regasify a 72,000t standard-sized cargo in 4-5 days when operating at full capacity. By Martin Senior Diversions to Europe m³ Carrier Capacity Diversion date Approx diversion location Diversions from Asia BW Lesmes 174,000 13-Nov West Africa Gaslog Windsor 180,000 14-Nov West Africa Vivirt City LNG 174,000 15-Nov West Africa LNGShips Empress 174,000 18-Nov Carribean Diamond Gas Crystal 174,000 14-Nov Carribean Flex Vigilant 174,000 14-Nov Carribean Aristos I 174,000 18-Nov Madagascar Diversions from Egypt British Listener 173,000 13-Nov Mediterranean LNG Harmony 174,000 14-Nov Mid-Atlantic Axios II 174,000 14-Nov Mid-Atlantic Pacific Success 174,000 16-Nov South of Suez — Vortexa, Argus Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Germany ups climate adaptation fund commitment

24/11/19

Cop: Germany ups climate adaptation fund commitment

Berlin, 19 November (Argus) — Germany will contribute another $60mn to the Climate Adaptation Fund, the country's environment and foreign ministries announced at the UN climate summit Cop 29 in Baku, Azerbaijan, today. The federal ministry for the environment and the federal foreign office will contribute $30mn each. The ministries today said that Germany has contributed over $640mn since the fund was established in 2007, making the country the largest cumulative donor. The fund supports countries that are most at risk from climate change to adapt to the consequences of global warming and avoiding future climate damage through proactive action. With the commitment Germany is now "putting other countries under pressure", the German unit of non-governmental organisation Oxfam said. The payments will come from Germany's current budget, German special envoy for international climate action Jennifer Morgan said. Germany is not expected to pass a budget for 2025 this year, since its government lost its majority two weeks ago. Germany supports the adaptation fund through its international climate action initiative IKI, with which the federal ministry of economic affairs and climate action is also involved. The IKI since its establishment in 2008 has contributed a total of $840mn to adaptation activities, in addition to its contribution to the adaptation fund. Germany also launched a new $205mn call for projects through IKI at Cop 29 this week. The call asks for project ideas addressing mitigation — reducing emissions — as well as climate resilience and biodiversity protection, and has nine thematic priorities, including carbon removal activities and the mobilisation of private capital under Article 6 of the Paris agreement, which allows for co-operative approaches in mitigation activities. Other thematic priorities include energy efficiency in buildings, the development and implementation of innovative financing models and programmes for the protection of forests, and the scaling of innovative financing solutions for decarbonising energy-intensive industries. German economy and climate minister Robert Habeck also presented a new contribution to climate finance in Baku this week, aimed at promoting the decarbonisation of industry in emerging and developing countries, together with the UK and Canadian government and the CIF. And he joined the Global Cement and Concrete Association presentation at the summit of the first global standards for "climate-friendly" concrete and cement. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Singapore, Zambia ink Article 6 carbon credit deal

24/11/19

Cop: Singapore, Zambia ink Article 6 carbon credit deal

Baku, 19 November (Argus) — Singapore and Zambia today signed an agreement at the UN Cop 29 summit in Baku, Azerbaijan to collaborate on carbon credits aligned with Article 6.2 of the Paris Agreement. The countries will collaborate on a legally binding implementation agreement on carbon credits, which will include criteria and procedures for transfer under Article 6 of the Paris Agreement. Article 6 of the Paris accord aims to help set rules on global carbon trade. And within it, Article 6.2 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. The agreement between Singapore and Zambia is also aimed at facilitating knowledge exchange on carbon credit mechanisms. The countries will jointly identify mutually beneficial carbon credit projects and develop the necessary infrastructure to enable these projects. Singapore has entered into multiple carbon credit deals with other countries , but it has only signed implementation agreements with Ghana and Papua New Guinea . Carbon credits are an "innovative source of finance," said Singapore's minister of sustainability and environment Grace Fu today at the summit. "We are working with partners to develop a well-functioning and credible carbon market, including through the co-facilitation of the Paris Agreement Article 6 negotiations, and building a pipeline of high-quality, high integrity credits," she said. 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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