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US tamps down talk of Venezuela sanctions relief

  • Market: Crude oil
  • 19/05/21

Washington has no immediate plans to ease sanctions against Venezuela's oil sector or change its policy of forcing the country's president, Nicolas Maduro, to agree to a new election, a senior US official said today.

President Joe Biden's administration also will continue to prohibit oil-for-diesel swaps used by Spain's Repsol and Italy's Eni until last year to lift Venezuelan crude, nominee for assistant secretary of state for the western hemisphere, Brian Nichols, told the Senate Foreign Relations Committee today.

Maintaining status quo on Venezuela policy, despite acknowledging its shortcomings, shows how little the country has featured in the new US administration's initial foreign policy priorities. Firms like Repsol have used the change of guard in Washington to argue on humanitarian grounds for a reprieve in the economic pressure tactics against Venezuela, particularly for allowing non-US companies to lift Venezuelan crude in exchange for supplying diesel that is used in power generation, agriculture and public transport.

Those arguments have found an eager audience among US lawmakers representing the Democratic party's progressive wing. Maduro's recent overtures toward his opponents present an opportunity that the US should encourage, senator Chris Murphy (D-Connecticut) told Nichols.

But Nichols said the Biden administration is wary of relieving the sanctions pressure against Maduro's government "that has shown that it will use dilatory tactics to prevent progress toward free and fair elections." The US administration, which does not recognize Maduro's government, is pushing Caracas to schedule a new presidential election, release political prisoners and allow free press.

Nichols also downplayed the humanitarian argument in favor of restoring the diesel swaps. "There is enough diesel capacity within Venezuela, at least for the next six months or so," Nichols said. The Biden administration is still reviewing its overall Venezuela policy, and would consider changing its policy on diesel swaps "if we see that there is a problem there for the Venezuelan people," he said.

While the US is considering diesel production capacity in Venezuela as sufficient, at least some sectors of the economy appear to face fuel shortages.

Venezuelan opposition leader Juan Guaido, whom the US recognizes as the country's interim president, has come under pressure from Venezuelan farmers that have struggled to maintain operations and distribute produce because of the diesel shortages, tightening food supply. In a press conference today, Guaido blamed the shortages on government corruption and shipments to Cuba, rather than the sanctions.


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13/11/24

Cop: Argentina pulls delegation from Baku

Cop: Argentina pulls delegation from Baku

Montevideo, 13 November (Argus) — Argentina's government today withdrew its delegation from the UN Cop 29 climate summit in Baku, Azerbaijan. The country's foreign affairs ministry confirmed to Argus that the delegation had been told to leave the event, which began on 11 November and will run through 22 November. No reason was given for the decision, but it fits the general policies of President Javier Milei, who has expressed skepticism about climate change. Milei eliminated the country's environment ministry shortly after taking office in December 2023. He is also pursuing investment to monetize oil and gas reserves, with a focus on the Vaca Muerta unconventional formation. Vaca Muerta has an estimated 308 trillion cf of natural gas and 16bn bl of oil, according to the US Energy Information Administration. In October, the government created the Argentina LNG division with a plan to involve private companies and the state-owned YPF to produce and export up to 30mn metric tonnes (t)/yr of LNG by 2030. It wants to export 1mn bl of crude. The plans are closely linked to a new investment framework, known as RIGI, that will provide incentives for large-scale investments. The administration is also pushing hard for investment in critical minerals, including copper and lithium. Argentina has the world's second-largest lithium resources, estimated at 22mn t by the US Geological Survey. It has copper potential that the RIGI would help tap. The government has not specified if pulling out of Cop 29 means Argentina will withdraw from the Paris Agreement, which Argentina ratified in 2016. The country's nationally determined contribution calls for net emissions not to exceed 359mn t of CO2 by 2030. This represents a 21pc reduction of emissions from the maximum reached in 2007. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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No sign of peak in CO2 from fossil fuels: Report


13/11/24
News
13/11/24

No sign of peak in CO2 from fossil fuels: Report

London, 13 November (Argus) — Carbon emissions from fossil fuels are projected to hit a fresh record high of 37.4bn t in 2024, with "no sign" that these have peaked, a team of scientists said today in the 2024 Global Carbon Budget report. Total CO2 emissions are projected to reach 41.6bn t in 2024, up from 40.6bn t in 2023, which includes emissions of around 4.2bn t from land-use change, the report found. It also estimates the global carbon budget remaining before the 1.5°C temperature limit set out in the Paris climate agreement is "breached consistently over multiple years". The remaining carbon budget "has almost run out", the report found. There is a 50pc chance that warming will exceed 1.5°C above pre-industrial levels "consistently in about six years", the report found. There is uncertainty around the estimates, largely owed to the effects of other greenhouse gases (GHGs) such as methane and nitrous oxide, it noted. The Paris accord seeks to limit a rise in global temperature to "well below" 2°C above a pre-industrial average, and preferably to 1.5°C. This year is on track to be the hottest on record , the World Meteorological Organisation said on 11 November — the opening day of the UN Cop 29 climate summit in Baku, Azerbaijan. And drought conditions have helped to reverse a recent downward trend in CO2 emissions from land-use change — such as deforestation — in 2024. Those emissions are set to rise in 2024, after falling by 20pc in the past decade, the report found. Permanent CO2 removals from reforestation and planting new trees is "offsetting about half of the permanent deforestation emissions", it added. And the report authors noted that technology-based carbon removals — typically engineered, rather than nature-based — are at current levels only able to account for one-millionth of the CO2 emissions from fossil fuels. Projections for the highest-emitting countries — China, the US and India — are mixed. China's emissions are projected to increase by 0.2pc in 2024, although the report noted that the range means they could decrease. US emissions are set to drop by 0.6pc, while India's are projected to rise by 4.6pc this year. The Global Carbon Budget report — which will be peer-reviewed — is produced annually by an international team of more than 120 scientists. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Developing nations eye sub-targets in finance goal


13/11/24
News
13/11/24

Cop: Developing nations eye sub-targets in finance goal

Baku, 13 November (Argus) — The finance goal for developing countries under negotiation at the UN Cop 29 climate summit in Baku, Azerbaijan, must include a core public finance target from developed countries, with fund allocation floors for least developed countries (LDCs) and Small Island Developing states (Sids), delegates from developing countries said today. The goal, the so-called new collective and quantified goal (NCQG), must include a core public finance provision target by developed countries based on a burden sharing agreement, and a fund mobilisation target, said regional alliance the African Group of Negotiators' (AGN) lead co-ordinator for finance Richard Sherman. The goal should address mitigation — action to reduce greenhouse gas emissions — and also adaptation and loss and damage, he said. Adaptation refers to adjustments to avoid global warming effects, while loss and damage describes the unavoidable and irreversible effects of such change. The goal needs to offer "predictable finance" for adaptation and loss and damage for small economies with more limited resources, and recognise the "special case of Sids", said Samoa's environment minister and chair of the Alliance of Small Island States (Aosis) Toeolesulusulu Cedric Schuster. He said the amount to be agreed at the UN Cop 29 climate summit in Baku for developing countries' climate finance should include "minimum allocation floors" of $39bn/yr for SIDs and $220bn/yr for LDCs. Marshall Islands President Hilda Heine said parties should make sure no finance supporting development of fossil fuels is counted in the new goal. AGN reiterated today that it wants a climate finance commitment of $1.3 trillion/yr by 2030, mostly through concessional instruments and grants. The NCQG follows on from the current $100bn/yr target, which is broadly recognised as inadequate. Developed nations surpassed the goal by $15.9bn in 2022, but it was missed in 2020 and 2021, according to the OECD. AGN contests it has never been met . Negotiations on the NCQG have begun in Baku, but are in the early stages with developed countries unwilling to commit to a figure, a delegate said. A group of leading Multilateral Development Banks (MDBs) estimated yesterday that they could increase climate financing to $120bn/yr by 2030 for low- and middle-income countries. The group, comprising the World Bank and nine other MDBs including the European Investment Bank, hope to leverage an additional $65bn/yr from the private sector. MDBs accounted for around 40pc of the $115.9bn in climate finance provided and mobilised by developed countries to developing nations in 2022, according to the OECD. The role of MDBs is crucial as increased climate ambition can only be met with increased finance, said Chile's environment minister Maisa Rojas. But Fiji's deputy prime minister Biman Prasad said the increase coming from MDBs is not going to translate into "additional finance unless there is a clear agreement at this Cop". By Bachar Halabi and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Six more countries to triple nuclear power by 2050


13/11/24
News
13/11/24

Cop: Six more countries to triple nuclear power by 2050

Baku, 13 November (Argus) — Six countries have pledged to triple their nuclear power capacity by 2050 at the UN Cop 29 climate conference in Baku, Azerbaijan, as part of an initiative launched at last year's summit in Dubai. El Salvador, Kazakhstan, Kenya, Kosovo, Nigeria and Turkey today joined 25 countries that had already signed up to the pledge, which was first announced at Cop 28 in Dubai . Turkey has plans to build 20GW of nuclear capacity by mid-century, from no operational plants currently. Kazakhstan's commitment follows a nationwide referendum last month in which the country voted in favour of constructing a nuclear power plant. The US, an original signatory to the pledge, yesterday announced its target to add 200GW of net new nuclear by 2050, from some 97GW now. White House national climate advisor Ali Zaidi told delegates at a Cop 29 side event today that he has "confidence in the durability" of the Biden administration's approach to clean energy action, and does not expect it to pause following Donald Trump's victory in the recent US election. Zaidi pointed in particular to bipartisan consensus on the country's infrastructure law, which includes support for nuclear power, and growing political consensus on the Inflation Reduction Act. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: US election not affecting Canadian policy


12/11/24
News
12/11/24

Cop: US election not affecting Canadian policy

Washington, 12 November (Argus) — Canada's government does not intend to alter its plans for cutting the country's greenhouse gas (GHG) emissions in response to the return of former president Donald Trump to the White House. The expected shift in US policy following Trump's recent election victory, including the likely repeal of climate-related regulations and exit from the Paris Agreement, will have no effect on Canada's plans, environment minister Steven Guilbeault said during a call with reporters on Tuesday from the UN Cop 29 climate summit in Baku, Azerbaijan. "It's not the first US administration where we have different views on climate change", he said. "That didn't stop us in the past." The Canadian government, led by prime minister Justin Trudeau, has implemented or proposed a number of policies and programs intended to help the country meet its Paris pledge to reduce its emissions by 40-45pc, compared to 2005 levels, by 2030. Canada plans to submit a more-aggressive commitment, known as a nationally determined contribution, to the UN early next year, Guilbeault said. The government last week proposed enacting a cap-and-trade program to reduce GHG emissions from the oil and gas sector, which has drawn sharp criticism from the industry . Guilbeault's comments came in response to a question about remarks made by former finance minister Bill Morneau, who served in Trudeau's government from 2015-2020. During a recent interview with a Canadian news program, Morneau suggested scrapping the oil and gas cap in light of Trump's election. "I respectfully disagree with minister Morneau", Guilbeault said. "The time to fight climate change is now. It's not tomorrow. It's not the day after tomorrow." Speaking to reporters earlier in the day in Baku, Guilbeault declined to comment "on what the new administration will or won't do." While Trump's election may not affect policy north of the border, Canada's Liberal Party could get voted out of power next year. The Conservative Party, which is well ahead in recent election polls, is campaigning on a platform that calls for ending the federal carbon tax and potentially other climate policies. But policies that have industry backing could survive . Canada must hold its next federal election no later than October 2025. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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