Nearly all safeguard facilities issued statements: CER

: Emissions
24/11/19

Australia's Clean Energy Regulator (CER) has already issued the annual position statements to "nearly all facilities" covered by the compliance carbon market's safeguard mechanism under the July 2023-June 2024 reporting year, it told Argus today.

"Any remaining position statements will be issued in the near future," the regulator said in an emailed response on 19 November.

The position statements set out each facility's annual baseline emissions number, as well as their covered emissions and net emissions number for the year. A total of 219 facilities were covered in the 2022-23 year, with a record high of 1.22mn Australian Carbon Credit Units (ACCUs) surrendered.

The 2023-24 compliance year will be the first to see the issue of safeguard mechanism credits (SMCs) to facilities that report Scope 1 greenhouse gas (GHG) emissions below their annual baselines, effectively introducing emissions allowances into the Australian carbon market.

Australian chemicals and fertilizer producer Incitec Pivot (IPL) said on 18 November that it will earn 63,529 SMCs with its Moranbah ammonia facility in Queensland, which will be partially used to cover excess emissions at Phosphate Hill, its other facility under the safeguard mechanism. SMCs will start to be issued by the CER in early 2025, with facilities recommended to apply for the units by 30 January, according to the regulator.

Facilities will then have until 31 March to surrender ACCUs or SMCs to avoid any excess emissions by 1 April 2025. The regulator must publish the broader safeguard data for the 2023-24 period by 15 April 2025.

No estimates of SMC issuance and ACCU/SMC surrenders

Despite having issued position statements to almost all facilities, the CER declined to give an estimated number of SMC issues or ACCU and SMC surrenders for the period.

"Estimates of SMC issuance and ACCU and SMC surrenders are still subject to a range of factors, including applications for Multi-Year Monitoring Periods, applications for Trade-exposed Baseline Adjusted determinations, and the CER's data quality assurance processes," it told Argus.

SMC issuances will be "relatively modest initially", the CER's executive general manager Carl Binning said in a forum in Sydney in September. Volumes are expected to build up over time as companies intensify efforts to reduce emissions while baselines converge to industry averages, he noted.

Australia's Department of Climate Change, Energy, the Environment and Water (DCCEEW) late last year estimated SMC issuances would start at around 1.4mn units in the July 2023-June 2024 year, rising to 7.4mn in 2030 and 10.3mn in 2035. Facilities that fall below the safeguard coverage threshold of 100,000t of CO2e can choose to continue receiving SMCs for up to 10 years — with their baselines continuing to decline if they opt in — and the DCCEEW expects such issuances will be the main source of SMCs by 2035 (see table).

It also projected safeguard demand for ACCUs and SMCs to rise from 4.19mn in the July 2023-June 2024 year to 28.26mn in July 2034-June 2035, while total ACCU demand — from the safeguard mechanism, deliveries to the federal government under carbon abatement contracts, the Climate Active certification programme, and other sources of voluntary, state/territory and compliance demand — would increase from 8.68mn to 24.15mn (see table).

By Juan Weik

Projected SMC issuances			(mn)
Financial year	From safeguard facilities	From below-threshold facilities	Total

2024	1.36	0.05	1.41
2025	1.62	0.13	1.75
2026	2.27	0.06	2.33
2027	3.20	0.26	3.46
2028	3.52	0.22	3.74
2029	4.34	0.54	4.88
2030	5.67	1.77	7.44
2031	5.31	1.92	7.23
2032	5.29	3.75	9.04
2033	6.77	3.47	10.24
2034	5.82	4.72	10.54
2035	4.80	5.51	10.31
Source: DCCEEW

Projected ACCU demand and safeguard demand for ACCUs/SMCs		(mn)
Financial year	Net safeguard demand for units (ACCUs/SMCs)	Total ACCU demand

2024	4.19	8.68
2025	9.91	14.77
2026	12.86	17.49
2027	19.38	24.18
2028	24.02	28.47
2029	26.22	28.91
2030	27.49	28.38
2031	31.09	31.38
2032	30.89	29.23
2033	27.90	25.82
2034	29.86	26.53
2035	28.26	24.15
Source: DCCEEW

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24/11/19

G20 reaffirms support for Paris Agreement climate goals

Baku, 19 November (Argus) — G20 leaders have reaffirmed their support for the Paris Agreement climate goals, saying that they "fully subscribe" to the Cop 28 deal struck last year — which included language on transitioning away from fossil fuels. They also committed to "successful negotiations" on the new finance goal for developing countries at the UN Cop 29 summit in Baku, Azerbaijan. The G20 leaders' declaration released early today stated that parties "reaffirm our steadfast commitments, in pursuit of the objective of UNFCCC, to tackle climate change by strengthening the full and effective implementation of the Paris Agreement." The G20 summit is taking place in Brazil over 18-19 November, during the second week of the UN Cop 29 summit in Baku, Azerbaijan. G20 parties also "welcome and fully subscribe" to last year's Cop 28 deal and global stocktake. The first global stocktake was the main document to come out of Cop 28 last year, setting the path for the next few years, and it will be a five-yearly undertaking to measure progress against Paris Agreement goals. The deal included countries' agreement to "transition away" from fossil fuels, although today's G20 statement did not explicitly mention a reduction in consumption or production of coal, oil and gas. It reiterated support for the implementation of efforts to triple renewable energy capacity globally and double the global average annual rate of energy efficiency improvements. G20 countries said that they will intensify their efforts to achieve net zero emissions by or around mid-century, and stated that they encourage each other to bring forward net zero commitments. The document also states that parties "look forward to a successful new collective quantified goal (NCQC) outcome in Baku," and that the G20 pledges support for the Cop 29 presidency. Progress at Cop 29 towards agreeing a new NCQG has not been sufficient, said Cop 29 president Mukhtar Babayev on 18 November, urging G20 leaders to send "a positive signal of commitment". G20 leaders have sent a "clear message" to their negotiators at Cop 29, to not leave Baku without a successful new finance goal, said UN climate body UNFCCC executive secretary Simon Stiell, adding that "this is in every country's clear interests." "This is a positive signal from the G20, that despite their differences, they've reaffirmed their support for an agreement to be reached at Cop 29 on the new climate finance goal," said Greenpeace. G20's reaffirmation of the global stocktake is likewise welcomed as the group accounts for around 75pc of global emissions, giving it a responsibility to lead climate action, said Greenpeace. In line with Cop 29's focus on climate finance, the G20 also acknowledged that developing countries need to be supported in their transitions to low carbon emissions, and "we will work towards facilitating low-cost financing for them". The G20 also reiterated its commitment in the New Delhi leaders' declaration to boost efforts to phase out and rationalise inefficient fossil fuel subsidies that "encourage wasteful consumption," adding that the parties commit to achieving this. The G20 summit in India last year rolled over a commitment the group first made in 2009 to phase out fossil fuel subsidies, without updating this to a more ambitious target. G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US, the African Union and the EU. Argentina last week pulled its delegation from Cop 29 sparking concern that it may exit the Paris agreement. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Germany, UK, Canada co-operate on climate finance

24/11/18

Cop: Germany, UK, Canada co-operate on climate finance

Berlin, 18 November (Argus) — Germany, the UK, Canada and multilateral entity Climate Investment Funds (CIF) will provide around $1.3bn of climate finance for developing low-carbon production processes and green lead markets in developing and emerging countries, they announced today. The support aims to contribute to a "level playing field" for new climate-friendly, "green" markets, and drive forward a "successful global and fair transition to climate neutrality", Germany's federal ministry of economic affairs and climate action said. The contribution also "sends a strong signal to the international community and generates momentum towards [the next UN climate summit] Cop 30 in Brazil", German economy and climate minister Robert Habeck said. The German government has pledged around $220mn and the UK around $211mn, while over $900mn is to come from the CIF, with private-sector contributions leveraging the commitment, the ministry stressed. Canada will contribute unspecified "additional" funds. Further pledges from governments, civil organisations and private-sector investments will be "mobilised" over the next months, Habeck said. CIF was established in 2008 to finance pilot projects in developing countries at the request of the G8 and G20. The upcoming presidencies of the G7, G20 and Cop 30 aim to focus more strongly on climate finance, Habeck added. The Germany-founded Climate Club will support the implementation of the pledge, Habeck said. The club, which Germany views as the "central international forum for decarbonisation issues", held its second leaders' meeting last week, one year after its official launch at Cop 28 in Dubai. The club's global matchmaking platform, one of its key services, was also launched last week. The German government is pushing for a stronger role for "green guarantees", a type of blended finance, which could limit the pressure on public finances but mobilise private funds, as the financing risk would be to an extent guaranteed by the governments of developed countries. Germany's policy makers have repeatedly stressed the importance of private capital for climate finance, given the limited availability of public funds. The Green Guarantee Group, which was launched at Cop 28 and had its first "high-level political exchange" in Berlin last month, is to develop "concrete recommendations" before Cop 30 on how to "adjust the levers of the international financial system" so that funds flow to where they are most effective, according to Germany's economy ministry. Germany sees itself as a leading provider of climate finance, and said it contributed €9.9bn last year, of which €5.7bn came from the federal budget. Habeck at a side event at Cop 29 today also reiterated his call for an extra levy on oil and gas companies, which could be ploughed into funds directed at supporting climate action in developing countries. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Progress on actions to cut emissions uncertain

24/11/18

Cop: Progress on actions to cut emissions uncertain

Baku, 18 November (Argus) — Progress on mitigation — actions to cut greenhouse gas emissions — is uncertain at the UN Cop 29 climate summit, as talks on a specific text related to the issue are at risk to be pushed back to 2025, losing any progress made in the past year. Some countries had proposed using the mitigation work programme — a work stream focused on reducing emissions — to progress the commitment made at Cop 28 in 2023 to "transition away" from fossil fuels. But talks have stalled and could end without a conclusion at the summit. Developed countries as well as developing nations including some small island states and countries in Latin America — such as Brazil, Colombia, Peru, Mexico — have expressed disappointment about how mitigation talks were going. New Zealand called on countries to follow up on last year's decision on mitigation at Cop 28 and Norway added that these issues deserved "more than silence on mitigation". Switzerland complained that mitigation was "held up by a select few", and said that the discussion was critical for increased commitments for next year's 2035 Nationally Determined Contributions (NDCs). NDCs are countries' climate plans that include emissions reduction targets. Cop parties are due to submit new versions by February 2025. The US also said that Cop 29 needed to "reaffirm the historical Global Stocktake decision" taken last year. And developed nations, led by the EU, called for the discussion to continue this week — the second week of Cop 29. But countries including Bolivia, Iran and Saudi Arabia, for the Arab Group, pushed back on this. The mitigation work programme is "not… open to reinterpretation", Saudi Arabia's representative said today. The country said earlier that it did not want new targets to be imposed, complaining about the "top-down approach" taken by developed countries. India reminded developed countries that they have yet to deliver on their new finance commitment — a crucial step for more ambitious NDCs in developing nations. But "Cop 29 cannot and will not be silent on mitigation", the summit's president, Mukhtar Babayev said today. "On mitigation we have been clear that we must make progress, "he said, adding that he has asked ministers from Norway and South Africa to consult on what an outcome on mitigation could look like. EU climate commissioner Wopke Hoekstra today said that it is "imperative that we send a strong signal this week for the next round of NDCs", he said. Points related to mitigation — including transitioning away from fossil fuels and phasing out inefficient fossil fuels subsidies — are currently mentioned in the draft text for the new finance goal, known as the new collective quantified goal (NCQG). It is the key issue at Cop 29. Developed countries agreed to deliver $100bn/yr in climate finance to developing nations over 2020-25, and Cop parties must decide on the next stage — including the amount. Developed countries are likely push for the fossil fuel language to stay in the finance goal text, especially if mitigation talks stall elsewhere. But countries such as Saudi Arabia have long opposed this, while developed countries have received some criticism for still not having given an amount for the new finance target. By Georgia Gratton, Prethika Nair and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: G20 momentum key to Cop climate finance outcome

24/11/18

Cop: G20 momentum key to Cop climate finance outcome

Baku, 18 November (Argus) — The outcome of the G20 leaders' summit in Brazil taking place on Monday and Tuesday on climate financing will be key to the success of the UN Cop 29 climate conference in Baku, Azerbaijan, summit president Mukhtar Babayev said today. "We cannot succeed without [the G20], and the world is waiting to hear from them," Babayev said. The leaders' summit takes place at the beginning of the second week of the Cop 29 conference. Progress at Cop 29 last week towards agreeing a new climate finance target for developing countries — the so-called NCQG — was not sufficient, Babayev said. He is concerned that parties are not moving towards each other fast enough. Little progress was made in the first week on three main areas of disagreement: the amount of climate finance which should be provided, how it should be structured, and which countries should contribute. Babayev urged G20 leaders, including US president Joe Biden who will be present in Brazil, to send a "positive signal of commitment to solving the climate crisis," and deliver clear mandates for Cop 29. The talks in Baku move from the technical to the political phase this week. Ministers typically have more authority to move red lines. But parties should focus on wrapping up less contentious issues early in the week so as to leave time for major political decisions, according to Simon Stiell, executive secretary of UN climate body the UNFCCC. Babayev expects talks on the amount of climate financing which will be on the table to continue until the last day of the summit at the end of this week, he said. The Cop presidency has invited former and upcoming Cop hosts the UK and Brazil to advise and "ensure an ambitious and balanced package of negotiated outcomes." Both countries have in the past week communicated more ambitious emissions reduction targets, which have been broadly welcomed. The EU today called for the Cop presidency to step up its role in the process. "We do need a presidency to lead, to steer us in the direction of a safe landing ground," European commissioner for climate action Wopke Hoekstra said. Hoekstra declined to be drawn on the amount of climate financing that the EU would like to see. Developing countries have pushed for a high goal of $1.3 trillion/yr, well above the previous target of $100bn/yr. The EU today reiterated instead its desire for the base of contributor countries to be enlarged beyond the current roster of countries defined as developed under the UNFCCC, and for as much private finance to be mobilised as possible to add to public finance. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

G20 takes climate spotlight as Cop 29 stalls

24/11/18

G20 takes climate spotlight as Cop 29 stalls

Rio de Janeiro, 18 November (Argus) — A top UN climate official is urging G20 leaders to step up the pace of developing new climate finance goals, as talks on the topic have stalled at the UN Cop 29 climate talks in Baku, Azerbaijan. "Climate finance progress outside of our process is equally crucial, and the G20's role is mission-critical," said UN climate body chief Simon Stiell in a letter to the G20 leaders, who start two days of meetings today in Rio de Janeiro. "[The summit] must send crystal-clear global signals." Leaders at the G20 summit have already promised to discuss terms of a fair energy transition, as Brazil — which is holding the group's presidency this year — picked the topic as one of its three goals, along with combating hunger, poverty and inequality and the reform of global governance. The leaders will present a joint statement on the energy transition on Tuesday and on the other two goals on Monday. Brazilian president Luiz Inacio Lula da Silva and UN secretary general Antonio Guterres already met over the weekend at the end of the G20 Social, a Brazilian initiative parallel to the G20 meetings that seeks to "broaden the dialogue between countries and society" to discuss climate and environmental crises. Lula and Guterres discussed the need for a "coordinated international response to mitigate the effects of climate change, promote adaptation and protect the most vulnerable populations," according to a statement from the Brazilian environmental ministry. They also agreed that increasing international financing for climate action in developing countries is "urgent." The leaders discussed the increase in global climate ambitions through new Nationally Determined Contributions, aligned with the 1.5°C target of the Paris Agreement and in line with the scientific recommendations of the Intergovernmental Panel on Climate Change. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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