Brazil Climate Fund can grow threefold: Bndes
Demand for Brazil's Climate Fund is three times larger than the R10.4bn ($2.02bn) it currently holds, the president of the country's development bank Bndes said on Thursday.
"We have a growing demand [for the fund]", president Aloizio Mercadante said during an event held by Rio de Janeiro state's industries federation. "We will perhaps expand the fund, because demand is already three times greater than what we have."
Mercadante called on industries and entrepreneurs to present "good, bold projects."
The Climate Fund is linked to Brazil's environment ministry and managed by Bndes. It was created in 2009 and uses resources from oil and natural gas exploration to mitigate and combat climate change.
Related news posts
Little progress on UN carbon markets at Bonn talks
Little progress on UN carbon markets at Bonn talks
Bonn, 14 June (Argus) — Negotiations in Bonn, Germany, on the future UN carbon markets closed yesterday evening with little progress, five months before the UN Cop 29 climate conference in Baku, Azerbaijan, in November. Negotiation texts on carbon market rules under both Article 6.2 and 6.4 of the Paris climate agreement, passed at the end of the Bonn UN climate talks, still included a range of options and a significant amount of bracketed text, which marks as yet undecided wording. Disagreement persists on issues touching on the registries for credits under both mechanisms, information disclosure requirements along the credit-generating process, and the timing and scope of credit authorisation, including the extent to which this authorisation might be revoked. One proposed option would allow host countries to transfer Article 6.4 emissions reductions credits that have been authorised, and therefore become so-called internationally transferred mitigation outcomes (Itmos), to the international or national registries for activities in the more informal market segment under Article 6.2. Some parties, including the US, were heard to oppose this option on grounds of "integrity", given that Article 6.2 is based on bilateral agreements between states and not strictly speaking a carbon crediting mechanism. Another option in the Article 6.2 negotiation text, upheld by several potential host countries, allows either participating party "to change and/or revoke the authorisation of Itmos at any time". One option also calls for bilateral agreements themselves to be subject to authorisation, not just the Itmos generated subsequently. Switzerland, a frontrunner on Article 6.2, has adopted the approach of authorising the actual co-operative agreements. Environmental non-governmental organisation Carbon Market Watch (CMW) today commended the stronger focus on the crucial role of transparency during the Bonn talks, with negotiating parties tasking UN climate arm the UNFCCC with developing a code of conduct on "treating and reviewing" information they classify as confidential about their trade agreements, although it remains to be seen how ambitious the code of conduct will be, CMW said. On the UNFCCC-regulated market mechanism under Article 6.4, which will broadly replace the clean development mechanism under the Kyoto Protocol, there is hope that the supervisory body will solve outstanding issues in the meetings it has lined up before Cop 29. These include the methodologies underpinning permitted credits and how to deal with credits generated by carbon removal activities. The Bonn talks also saw a push for a verdict on the eligibility of carbon credits generated by emissions avoidance activities. But countries ended up sticking to the position agreed at Cop 28 to postpone a decision on the issue until 2028. "Completing the remaining elements on Article 6 in Baku will unlock further funding for national climate plans and adaptation," the UNFCCC said today. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Low-CO2 biofuel feedstock imports to rise: USDA
Low-CO2 biofuel feedstock imports to rise: USDA
New York, 13 June (Argus) — A new US tax credit kicking off next year that is more generous for fuels that produce fewer greenhouse gas emissions will likely spur more imports of low-carbon feedstocks, the US Department of Agriculture (USDA) said in a report this week. A raft of government incentives, including the federal renewable fuel standard and low-carbon fuel standards (LCFS) in states like California, has already spurred a boom in renewable diesel production, upping demand for feedstocks that can be used to make the fuel. The US was a net soybean oil importer for the first time ever in 2023 because of strong demand from domestic refineries, and the value of US imports of animal fats and vegetable oils more than doubled from 2020 to 2023 according to the report. That trend could become even more pronounced next year as the Inflation Reduction Act's 45Z tax credit, which offers up to $1.75/USG for sustainable aviation fuel and up to $1/USG for other fuels like renewable diesel, comes into force. The credit can only be claimed for fuel produced in the US, likely cutting biofuel imports and sending more feedstocks that would have been refined abroad to the US instead, the report says. The 45Z credit will also be more generous to fuels with lower carbon intensity, upping demand for waste feedstocks like used cooking oil that already fetch greater discounts in LCFS programs. Fast-rising imports of China-origin used cooking oil have already frustrated some agricultural groups, which lose out if there are more ample supplies of waste feedstocks. The report says that while soybean oil was the "crucial feedstock" allowing for the recent growth in US renewable diesel, its share of the feedstock mix has been trending downwards because of competition from lower-carbon feedstocks and lower-cost canola oil from Canada. While soybean oil exports have plunged because of the renewable diesel boom, they could recover slightly if refineries increasingly turning to waste feedstocks cuts into US soybean oil's current premium over global vegetable oils. The report adds that soybean oil's role in renewable diesel production is also at risk from rising supplies of soybean meal, which is produced alongside oil at crush plants and where the global demand picture is less clear. "Based on global demand for soybean meal, soybean oil cannot continue to fuel renewable diesel production growth at current rates during the next few years without major changes to global soybean meal demand, shifts in exporter market shares, or lower supplies in other exporting countries," the report says. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Bonn UN climate talks fail to advance new finance goal
Bonn UN climate talks fail to advance new finance goal
Bonn, 13 June (Argus) — Talks at the UN Framework Convention on Climate Change (UNFCCC) in Bonn, Germany, are coming to an end today and parties have little to show for their two weeks of negotiations on climate finance for developing countries. Progress on agreeing a new climate finance target — to replace a pledge that was missed by developed countries to give $100bn/yr to developing countries by 2020 — was limited and there are still significant divisions among parties, think-tank E3G said today. Details of the updated target must be finalised during the UN Cop 29 climate summit in Baku, Azerbaijan later this year. But so far negotiators have remained entrenched in their positions on key issues such as how much finance should be provided, who should contribute, who should benefit or qualify as "particularly vulnerable" and the quality of the finance — loans over grants — along with the role of private finance. Developed countries have not come forward with a number during the negotiations, despite being pressed repeatedly by developing nations to do so. The latter, including Saudi Arabia, India and African nations, are calling for at least $1 trillion-1.3 trillion/yr. The US said that it supports a goal that is "fit for purpose" and "from a floor of $100bn/yr". The EU and other developed nations argue that certain high-emitting developing countries, such as China or Saudi Arabia, should shoulder some of the finance, thereby broadening the donor base. But China made clear that it has no intention of doing that. "Developing countries voluntarily support each other beyond our capacity and we have no intention to make your numbers look good," the Chinese negotiator said. Pakistan's delegate rejected developed countries' proposals, which he said were not in line with the Paris Agreement, such as the obligation on developing countries to implement certain domestic measures in exchange for funding. Australia called parties out on a "game of word-count to measure balance" and said the new target amount should be "the star at the top of the Christmas tree" because "it is dependent on the structure, types of sources, the timeframe and breadth of contributor base". Meanwhile, Barbados pleaded for parties "to move forward" on the text as otherwise "more Small Island Developing States and Least Developed Countries will simply disappear from this gathering because we disappear from this planet". Although UNFCCC executive secretary Simon Stiell called for "serious progress" to be made on finance and for parties to move from "zero-draft to real options", these key issues will be left for top negotiators and ministers to tackle in Baku. The US election — which will take place a week before Cop 29 starts — is one of the biggest factors in moving the finance discussions forward, E3G policy adviser Tom Evans said. Convergence Consensus does seems to be forming on some issues, such as the need to make access to finance easier to least developed and vulnerable countries, discussing unsustainable debt and the cost of capital, and the need for more transparency — possibly in the context of the Enhanced Transparency Framework (ETF). The framework obliges parties to draw up biennial transparency reports, with the first due at the end of the year. The "very fundamental divide" between the two blocs on their perceptions around climate finance is underpinned by a lack of trust in the system, senior attorney Erika Lennon from the Center for International Environmental Law said. This is understandable given the time it took developed countries to fulfil their $100bn/yr pledge and the underwhelming performance so far of the different funding programmes, she added. With neither camp ready to compromise in Bonn, it remains to be seen who will "give", Evans of E3G said. By Chloe Jardine and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK political parties repeat existing stances on energy
UK political parties repeat existing stances on energy
London, 13 June (Argus) — The two main UK political parties have set out their plans, including on energy and climate change, with just three weeks until the general election. Energy security and the cost to consumers is a recurring theme for both, but the manifestos present some marked differences in approach to the energy transition. Both the incumbent Conservative and opposition Labour parties doubled down on existing positions in their respective manifestos. The Conservative party said that it remains committed to the UK's 2050 net zero emissions target, but promises a "pragmatic and proportionate" route. The party's manifesto guarantees "no new green levies or charges while accelerating the rollout of renewables". The UK's net zero goal is legally-binding, and was passed with significant cross-party support under a Conservative government in 2019. The Conservatives have been in power since 2010, and fielded five prime ministers in that time. Recent polling data show a substantial lead for Labour, which performed well at local elections in May. Labour placed strong focus on the opportunity the transition offers, saying that it would place the UK at the "forefront of climate action by creating the green jobs of the future at home and driving forward the energy transition on the global stage". The party has committed to zero-carbon power by 2030, although it would "maintain a strategic reserve of gas power stations to guarantee security of supply", it said. The Conservative manifesto reiterates the party's plans to build new gas-fired power plants. The party had previously committed to a decarbonised power grid by 2035, in line with a G7 pledge, although that is not mentioned in its manifesto. The two main parties clearly diverge on their approaches to North Sea oil and gas production. The Conservatives aim to keep the windfall tax — which effectively results in a 75pc rate — on oil and gas producers in place "until 2028-29, unless prices fall back to normal sooner". Labour confirmed plans to lift the rate to 78pc and run the tax until the end of the next parliament, which is likely to be mid-2029. Labour is also clear that it "will not revoke existing licences" in the North Sea, but it will not issue any new licences — for oil, gas or coal. The Conservatives restated the party's aim to legislate for annual North Sea licensing rounds . Both parties back nuclear energy, including small modular reactors — though those are unlikely to be operational until after 2030. And both pledge to cut planning bureaucracy and tackle grid connections. Labour's plans to "double onshore wind, triple solar power, and quadruple offshore wind by 2030" would result in installed capacity of 31GW, 48GW and 59GW, respectively, from a baseline of end-2023. The Conservatives' target to triple offshore wind by the end of the next parliament would put installed capacity at 44GW in 2029 — below the 50GW target for 2030 set in 2022 — while it said it supports solar and onshore wind in some circumstances. Finance in focus Both parties are keen to pull in private-sector investment, while Labour took up an original Conservative pledge to "make the UK the green finance capital of the world". And both pledge to address the cost of energy for consumers — Labour through local power generation projects and home insulation upgrades, and the Conservatives by ruling out any further "green levies". The latter plans to reverse London's expansion of the ultra-low emissions zone — originally planned by Conservative then-mayor and later prime minister Boris Johnson. Labour said that it would restore a phase-out date of 2030 for new internal combustion engine cars — which prime minister Rishi Sunak in September pushed back to 2035 . On an international level, both parties mention climate leadership at summits such as UN Cops. The Conservatives pledged to "ring-fence" the UK's climate finance commitments, while Labour committed to restore development spending to 0.7pc of gross national income "as soon as fiscal circumstances allow". By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more