Climate policy and UN Cop meetings
Overview
Argus provides key insights on how global climate policies will affect the global energy and commodity markets. We shine a light on decisions made at UN Cop meetings, which have far-reaching effects on the markets we serve. Progress at Cop 30 in Brazil will be crucial in transforming ambitions into actions aligned with the goals of the Paris Agreement. Countries must produce new climate plans this year.
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News
IEA warns of lithium and copper deficits by 2035
IEA warns of lithium and copper deficits by 2035
London, 21 May (Argus) — The Paris-based IEA has warned that global deficits of copper and lithium by 2035 could be exacerbated in some regions owing to concentration of supply and refining, leading to a potential "Opec moment" for critical minerals. In its new Global Critical Minerals Outlook report, the IEA said lithium could see a 40pc deficit by 2035, even if all current projects proceed, while copper is expected to reach a 30pc deficit by the same year. "Diversification is the watchword for energy security, but the critical minerals world has moved in the opposite direction in recent years, particularly in refining and processing," the report's executive summary said. "The average market share of the top three refining nations of key energy minerals rose from around 82pc in 2020 to 86pc in 2024 as some 90pc of supply growth came from the top single supplier alone: Indonesia for nickel and China for cobalt, graphite and rare earths." In the lithium market, demand tripled from 2020 to 2024, and will triple again by 2035. By then, the electric vehicle (EV) sector will make up 90pc of additional demand while 95pc of future demand growth comes from battery applications: EVs, grid-scale energy storage and battery backup systems, reaching 3.7mn t LCE by 2035. Three countries — Australia, China and Chile — will control up to 69pc of lithium mining by 2030, while China is expected to control 62pc of refining by the same year. "China extracts only 22pc of lithium — but controls 70pc of global refining and 95pc of hard-rock lithium processing," the report said. The copper market is also expected to grow rapidly, supporting the energy transition, but underinvestment and dwindling resource quality will limit supply. Copper demand rises by 30pc by 2040 under the IEA's base-case (STEPS) scenario, up from 27mn t in 2024 to 34mn t by 2040. The IEA predicts a sharp deficit in supply by 2035, up to a 30pc deficit in primary supply. China is expected to dominate refining of copper, responsible for 47pc in 2030. The report said investment of up to $150bn-180bn is needed to keep pace with the global energy transition. "Despite strong copper demand from electrification, the current mine project pipeline points to a potential 30pc supply shortfall by 2035 due to declining ore grades, rising capital costs, limited resource discoveries and long lead times," the report said. By Thomas Kavanagh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Brazil backs R80mn for Amazon reforestation project
Brazil backs R80mn for Amazon reforestation project
Sao Paulo, 20 May (Argus) — Brazil's Bndes development bank will finance R80mn ($14.14mn) for Brazilian reforestation startup re.green to recover degraded areas in the Amazon rainforest and the Atlantic forest. The investment will fund re.green's deal with Microsoft , aimed at generating carbon offsets in both biomes, Bndes said. The resources come from the Climate Fund, which is linked to the environment ministry and is managed by Bndes. The project includes areas in Brazil's Restoration Arc initiative, which focuses on recovering degraded territories in the Amazon rainforest's most damaged areas. The Restoration Arc plans to restore 6mn hectares of native flora in the Amazon, as well as recover 1.65bn metric tonnes of CO² from the atmosphere by 2030. But it requires investments of $10bn (R56.5bn), Bndes said. The Climate Fund was created in 2009 with some of its funds coming from oil and natural gas exploration to mitigate and combat climate change. It currently holds around R11bn, according to Bndes. Reforestation is one of Brazil's flagship themes for the UN Cop 30 summit, which it will host in northern Para state in November. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU, UK to ‘work towards’ linking carbon markets
EU, UK to ‘work towards’ linking carbon markets
London, 19 May (Argus) — The EU and UK agreed to work towards linking their respective emissions trading systems (ETS), as part of their common understanding agreement concluded at a summit in London today. "The European Commission and the United Kingdom share the view that a functioning link between carbon markets would address many of the issues raised in respect of trade and a level playing field," the agreement states. A linking agreement should exempt both jurisdictions from their respective carbon border adjustment mechanisms, according to the common understanding, and the linked systems should cover power and industrial heat generation, and domestic and international maritime and aviation emissions. The statement specifically states that any link "should not constrain the European Union and the United Kingdom from pursuing higher environmental ambition". It also underlines that the UK ETS's supply cap and its emissions reduction pathway are "guided by" the country's Climate Change Act and nationally determined contributions to the Paris climate agreement, and that these should be "at least as ambitious" as the EU's. The UK has legally binding targets to cut its greenhouse gas (GHG) emissions by at least 68pc by 2030 and 81pc by 2035, both compared with 1990 levels. The EU aims to cut its net GHG emissions by 55pc by 2030, and is yet to set a 2035 target. Both jurisdictions are targeting net zero emissions by 2050, while they share the "same interests" in addressing climate change, commission president Ursula von der Leyen said today. Linking the systems would "save British businesses £800mn in EU carbon taxes", UK prime minister Keir Starmer said today, without specifying a timeframe for the savings. A study commissioned by a range of utilities and published last week found that linking the two systems would save up to €1.2bn on lower hedging costs resulting from improved market liquidity and lower bid-offer spreads. Today's agreement provides no timeline for linking the systems. The process to negotiate and link the Swiss ETS to the EU's scheme took almost 10 years. Alongside plans to work towards linking the EU and UK ETS, the jurisdictions also alluded in the agreement to continuing "technical regulatory exchanges" on energy technologies including hydrogen, carbon capture and storage and biomethane. And they will "explore in detail the necessary parameters" for the UK's potential participation in the EU's internal power market. By Victoria Hatherick and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
UK establishes public energy company
UK establishes public energy company
London, 15 May (Argus) — The UK parliament has passed a bill establishing a publicly owned energy company, Great British Energy (GBE), to support the nation's renewable energy ambitions. The company, funded with £8.3bn ($11.02bn) over the current parliamentary term, aims to accelerate renewable energy projects, enhance energy security, and support job creation, the department for energy security and net zero (Desnz) announced on Thursday. GBE will invest in clean energy initiatives, including technologies such as floating offshore wind, and collaborate with private companies to expand renewable energy capacity. The government states the company will help stabilise energy costs by reducing reliance on fossil fuels. The bill includes £200mn for renewable energy projects, such as rooftop solar for schools, hospitals, and communities. It has also committed £300mn to develop the UK's offshore wind supply chain, supporting manufacturing of components such as cables and platforms. The legislation received approval from the devolved governments of Scotland, Wales, and Northern Ireland, enabling GBE to operate across the UK. Desnz secretary of state Ed Miliband is expected to outline GBE's strategic priorities "soon", specifying technology focus areas and investment criteria. The government sees GBE as a key part of its plan to transition to clean energy and stimulate economic growth through a "modern industrial strategy", it said. Industry body Energy UK welcomed the bill's passage. "[GBE] can play a vital role in making the government's clean energy ambitions a reality by attracting extra private sector investment," chief executive Dhara Vyas said. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Analysis
Trump coal plant bailout renews first term fight
Trump coal plant bailout renews first term fight
Washington, 9 April (Argus) — President Donald Trump's effort to stop the retirement of coal-fired power plants is reminiscent of a 2017 attempt that faltered in the face of widespread industry opposition. Trump, in an executive order signed on Tuesday, directed the US Department of Energy (DOE) to tap into emergency powers to stop the retirement of coal-fired plants and other large plants it believes are critical to grid reliability. The order sets a 30-day deadline for DOE to decide which plants are critical based on a new methodology that will analyze if reserve margins, or the percent of unused capacity at peak demand, are at an "acceptable" level. The initiative shares similarities to Trump's unsuccessful effort in his first term to bail out coal and nuclear plants. In the 2017 effort, Trump backed a "grid resiliency" proposal to compensate power plants with 90 days of on-site fuel. But an unusual coalition of natural gas industry groups, manufacturers, renewable producers and environmentalists united against the idea, warning it would upend power markets and cost consumers billions of dollars each year. The US Federal Energy Regulatory Commission voted 5-0 to reject the proposal. It remains unclear if a similarly sized coalition will emerge to fight Trump's latest proposal, under which DOE would use emergency powers in section 202(c) of the Federal Power Act to keep some coal plants and other large power plants operating. Industry groups have largely been avoiding taking positions that could be seen as critical of Trump. Environmentalists say they strongly oppose keeping coal plants operating using emergency powers. Doing so would mean more air pollution and greenhouse gas emissions, they say, and higher costs for consumers. Environmental groups say they are hoping other industries affected by the potential bailout will eventually speak out against the initiative. "The silence from those who know better is deafening," Center for Biological Diversity climate law institute legal director Jason Rylander said. "I hope that we will start to see more resistance to these dangerous policies before significant damage is done." DOE said it was "already hard at work" to implement Trump's executive order, which was paired with other orders that were meant to support coal mining and coal production. US energy secretary Chris Wright said today that reviving coal will increase the reliability of the electrical grid and bring down electricity costs, but he has not shared further details on the 202(c) initiative. Trying to litigate the program could be "tricky", and section 202(c) orders have never successfully been challenged in court, in part because they are usually short-term orders, Harvard Law School Electricity Law Initiative director Ari Peskoe said. But opponents could challenge them by focusing on "numerous legal problems", he said, such as not allowing public comment or running afoul of a US Supreme Court precedent that prohibits agencies from attempting to decide "major questions" without clear congressional authorization. "Here DOE would use a little-used statute explicitly written for short-term emergencies in order to PREVENT a change in the US energy mix," Peskoe said. A projected 8.1GW of coal-fired generation is set to retire this year, equivalent to nearly 5pc of the coal fleet, the US Energy Information Administration said last month. Electric utilities often decide which plants to retire years in advance, allowing them to defer maintenance and to forgo capital investments in aging facilities. Keeping coal plants running could require exemptions from environmental rules or pricey capital investments, the costs of which would likely be distributed among other ratepayers. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Global energy mix evolves as electricity demand surges
Global energy mix evolves as electricity demand surges
Climate change is becoming a bigger factor behind electrification, but cleaner energy use is slowing the growth in global emissions, writes Georgia Gratton London, 28 March (Argus) — A substantial increase in electricity demand — boosted by extreme weather — drove an overall rise in global energy demand in 2024, lifting it well above the average pace of increase in recent years, OECD energy watchdog the IEA announced this week. This led to a rise in natural gas consumption, although renewables and nuclear shouldered the majority of the increase in demand, leaving oil's share of total energy demand below 30pc for the first time. Global energy demand rose by 2.2pc in 2024 compared with 2023 — higher than the average demand increase of 1.3pc/yr between 2013 and 2023 — according to the Paris-based agency's Global Energy Review . Global electricity consumption increased faster, by 4.3pc, driven by record-high temperatures — that led to increased cooling needs — as well as growing industrial consumption, the electrification of transport and the rapid growth of power-hungry data centres needed to support the boom in artificial intelligence, the IEA says. Renewables and nuclear covered the majority of growth in electricity demand, at 80pc, while supply of gas-fired power generation "also increased steadily", the IEA says. New renewable power installations reached about 700GW in 2024 — a new high. Solar power led the pack, rising by about 550GW last year. The power generation and overall energy mix is changing, as economies shift towards electrification. The rate of increase in coal demand slowed to 1.1pc in 2024, around half the pace seen in 2023. Coal remained the single biggest source of power generation in 2024, at 35pc, but renewable power sources and nuclear together made up 41pc of total generation last year, IEA data show. Nuclear power use is expected to hit its highest ever this year, the agency says. And "growth in global oil demand slowed markedly in 2024", the IEA says, rising by 0.8pc compared with 1.9pc in 2023. A rise in electric vehicle (EV) purchases was a key contributor to the drop in oil demand for road transport, and this offset "a significant proportion" of the rise in oil consumption for aviation and petrochemicals, the IEA says. Blowing hot and coal Much of the growth in coal consumption last year was down to "intense heatwaves" — particularly in China and India, the IEA found. These "contributed more than 90pc of the total annual increase in coal consumption globally", for cooling needs. The IEA repeatedly noted the significant effect that extreme weather in 2024 had on energy systems and demand patterns. Last year was the hottest ever recorded, beating the previous record set in 2023, and for CO2 emissions, "weather effects" made up about half of the 2024 increase, the watchdog found. "Weather effects contributed about 15pc of the overall increase in global energy demand," according to the IEA. Global cooling degree days were 6pc higher on the year in 2024, and 20pc higher than the 2000-20 average. But the "continued rapid adoption of clean energy technologies" restricted the rise in energy-related CO2 emissions, which fell to 0.8pc in 2024 from 1.2pc in 2023, the IEA says. Energy-related CO2 emissions — including flaring — still hit a record high of 37.8bn t in 2024, but the rise in emissions was lower than global GDP growth. Key "clean energy technologies" — solar, wind and nuclear power, EVs and heat pumps — collectively now prevent about 2.6bn t/yr CO2 of emissions, the IEA says. But there remains an emissions divide between advanced and developing economies. "The majority of emissions growth in 2024 came from emerging and developing economies other than China," the agency says, while advanced economies such as the UK and EU cut emissions last year and continue to push ahead with decarbonisation. Global energy suppy by fuel EJ Growth ±% 2024 2023 2022 24/23 23/22 Total 648 634 622 2.2 1.8 Renewables 97 92 89 5.8 3.1 Nuclear 31 30 29 3.7 2.2 Natural gas 149 145 144 2.7 0.7 Oil 193 192 188 0.8 1.9 Coal 177 175 172 1.2 2.0 Global power generation by fuel TWh Growth ±% 2024 2023 2022 24/23 23/22 Total 31,153 29,897 29,153 4.2 2.6 Renewables 9,992 9,074 8,643 10.0 5.0 Nuclear 2,844 2,743 2,684 3.7 2.2 Natural gas 6,793 6,622 6,526 2.6 1.5 Oil 738 762 801 -3.2 -4.8 Coal 10,736 10,645 10,452 0.9 1.8 Global power generation by country TWh Growth ±% 2024 2023 2022 24/23 23/22 World 31,153 29,897 29,153 4.2 2.6 US 4,556 4,419 4,473 3.1 -1.2 EU 2,769 2,718 2,792 1.9 -2.6 China 10,205 9,564 8,947 6.7 6.9 India 2,059 1,958 1,814 5.2 7.9 Global CO2 emissions by country mn t Growth ±% 2024 2023 2022 24/23 23/22 World 37,566 37,270 36,819 0.8 1.2 US 4,546 4,567 4,717 -0.5 -3.2 EU 2,401 2,455 2,683 -2.2 -8.5 China 12,603 12,552 12,013 0.4 4.5 India 2,987 2,836 2,691 5.3 5.4 *includes industrial process emissions — IEA Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Lula visits Japan to talk ethanol, Cop 30, beef
Lula visits Japan to talk ethanol, Cop 30, beef
Sao Paulo, 25 March (Argus) — Brazilian president Luiz Inacio Lula da Silva traveled to Japan on Tuesday in search of energy transition agreements and new market opportunities to improve trade relations between the countries. Bilateral Japan-Brazil trade fell to around $11bn in 2024, down from $17bn in 2011, the Brazilian government said. Brazil exported $730mn in goods to Japan in January-February, while importing $995mn from the Asian country in the period, according to Brazil trade ministry data. Exports dropped by almost 13.5pc from a year before in the two-month period, while imports grew by nearly 25pc. "Firstly, we have [a shortfall] to turn around," Lula said. Brazil will also ask Japan to join its growth acceleration plan . He is accompanied by 11 ministers and four members of congress, including senate president Davi Alcolumbre and lower house president Hugo Motta. Ethanol market Brazil aims to sell more ethanol to Japan, as the Asian country expects to increase its ethanol blend to 10pc from 3pc by 2030. "If Japan blends 10pc of ethanol into gasoline, it will be an extraordinary step not only for us to export to them but for them to be able to produce in Brazil," Lula said. Japan received 3.4pc of Brazil's ethanol exports in 2024, according to Brazil's development and trade ministry. Cop 30 and energy transition Lula's visit also seeks to attract investment in renewable energy, forest revamps and new donations to the Amazon Fund, as well as a "strong commitment" from Japan at the Cop 30 summit, to be held in Brazil later this year. Brazil aims to export clean fuels to generate power to Japan, as power imports account for more than 80pc of all Japanese power demand and "a large share of it comes from fossil sources," according to the Brazilian foreign relations ministry's Asia and Pacific secretary Eduardo Saboia. Brazilian and Japanese companies announced earlier this year plans to produce biomethane in Brazil . The renewable fuel would supply both countries. Brazil and Japan should also sign a deal to help recover the Cerrado biome, which is the second largest biome in Brazil and the second most endangered. It comprises of savanah grasslands and forest and makes up about 25pc of the nation's territory. The Cerrado lost 9.7mn hectares to wildfires in 2024, up by almost 92pc from 2023, according to environmental network MapBiomas' fire monitor researching program. Deforestation is one of Brazil's flagship issues for Cop 30 this year. The country has been pushing for forest protection and recovery initiatives as most of Brazil's past Cop pledges cannot be met with only its remaining forests. Japan and Brazil should talk about the Amazon Fund as well because Brazil "wants more", Saboia said. Japan was the first Asian country to donate to the fund with $14mn, which Saboia said was "too little." Where's the beef? Lula is also targeting opening Japan's beef market to Brazilian exports, as the Asian country imports over 70pc of all its beef. Lula met with members of the beef exporters association Abiec in his first day in Japan to discuss the matter. The bulk of Japan's beef imports — 80pc — come from the US, the Brazilian government said. Brazil does not currently export beef to Japan. "Brazil has the logistic capacity to increase exports and double beef exports every four years," transport ministry Renan Filho said. Brazil has been trying to enter Japan's beef market for over two decades. This time, Lula expects to achieve a technical visit from Japan to inspect Brazil's beef producing conditions as a first step toward accessing the Japanese market. Lula will depart to Vietnam on 28 March to debate a plan to turn the country into one of Brazil's strategic partners. Only Indonesia is considered a Brazil strategic partner in southeast Asia. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Aid cuts suggest a rocky period for climate finance
Aid cuts suggest a rocky period for climate finance
Western countries' potential retreat may open the field wider for countries such as China, writes Georgia Gratton London, 7 March (Argus) — A renewed focus on defence spending in Europe and swingeing aid cuts from major western donors create a gloomy outlook for international climate finance. It has been less than four months since developed countries settled a deal at the UN Cop 29 climate summit to ramp up climate finance to developing countries to $300bn/yr by 2035 — the highest ever agreed. Climate finance is unlikely to take centre stage at this year's Cop 30 in Brazil in November, but the topic underpins all climate talks and plays a large role in the speed at which the global energy transition proceeds. There have been steady, if modest, increases in climate finance in recent years. Developed countries delivered $115.9bn in climate finance to developing nations in 2022, the most recent OECD data show. This was a rise of just under a third on the year, and the first time developed countries hit their target of providing $100bn/yr in climate finance over 2020-25. But recently announced and expected cuts to aid are likely to slow progress. Official development aid typically encompasses climate finance. US president Donald Trump in January announced a pause to all US foreign aid through the country's international development agency, USAID, while UK prime minister Keir Starmer said last month that he would fund a rise in UK defence spending entirely through cuts to the country's aid budget from 2027. Starmer said the UK would continue to provide climate finance, as well as aid in other areas, but former UK international development minister Anneliese Dodds — who resigned over the cuts — said that it would be "impossible to maintain these priorities". Other European leaders are also focused on rapidly expanding defence spending — notably Germany's incoming chancellor Friedrich Merz — although there is no sign as yet that aid or climate finance will be diverted for this purpose. But both France and Sweden have indicated they will spend less on aid from this year, non-profit Donor Tracker says. The US, the UK, Germany, France and Sweden collectively provided $142.33bn in aid in 2023, OECD data show. Filling the finance gap Hitting the $300bn/yr climate finance goal by 2035 "is very much in reach", despite the challenging geopolitical landscape, research organisation World Resources Institute (WRI) says. The majority of climate finance is public — bilateral finance and funding from institutions such as multilateral development banks (MDBs). There are several options to ensure that financing from public institutions rises, WRI says. If countries pay in more capital to MDBs, it will increase the base amount against which they can lend. "While such increases may be unlikely today with current political dynamics, they could feasibly happen before 2035," WRI says. But significant private investment would be needed to move beyond the $300bn/yr goal and towards the wider roadmap for $1.3 trillion/yr in climate finance by 2035, as agreed at Cop 29. The retreat of wealthy western countries from contributing aid and climate finance is likely to erode some of the soft power these countries hold. This will allow other actors to step in. China portrayed itself as a reliable leader on climate at Cop 29, including making new concessions in the language used to describe its climate finance contributions. And the UAE committed $30bn to a new climate fund during Cop 28, which it hosted in 2023. UN biodiversity talks, which reconvened last week, proved a bright spot, as countries agreed on a strategy to boost biodiversity finance to $200bn/yr by 2030. But Brazil is well aware of the fractured developed-developing country relationship at climate talks, and of the divide it must bridge at this year's Cop 30. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Country focus
Brazil's energy transition spending drops in 2024
Brazil's energy transition spending drops in 2024
Sao Paulo, 30 April (Argus) — Brazil's mines and energy ministry's (MME) energy transition spending shrank by 83pc in 2024 from the prior year, while resources for fossil fuel incentives remained unchanged, according to the institute of socioeconomic studies Inesc. The MME's energy transition budget was R141,413 ($24,980) in 2024, down from R835,237 in the year prior. MME had only two energy transition-oriented projects under its umbrella last year: biofuels industry studies and renewable power incentives, which represented a combined 0.002pc of its total R7bn budget. Still, despite available resources, MME did not approve any projects for renewable power incentives. It also only used 50pc of its budget for biofuel studies, Inesc said. Even as supply from non-conventional power sources advances , most spending in Brazil's grid revamp — including enhancements to better integrate solar and wind generation — comes from charges paid by consumers through power tariffs, Inesc said. Diverging energy spending Brazil's federal government also cut its energy transition budget for 2025 by 17pc from last year and created a new energy transition program that also pushes for increased fossil fuel usage. The country's energy transition budget for 2025 is R3.64bn, down from R4.44bn in 2024. The new program — also under MME's umbrella — has a budget of around R10mn, with more than half of it destined to studies related to the oil and natural gas industry, Inesc said. A second MME program — which invests in studies in the oil, natural gas, products and biofuels sectors — has an approved budget of R53.1mn. The science and technology ministry is the only in Brazil that increased its energy transition spending for 2025, with R3.03bn approved, a near threefold hike from R800mn in 2024. Spending will focus on the domestic industry sector's energy transition, Inesc said. Climate activists have criticized Brazil for not planning to phase out fossil fuels before, including criticisms to the first letter written by the UN Cop 30 summit's president. The country will hold the summit in November in northern Para state. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Canada’s Liberals ahead on election homestretch
Canada’s Liberals ahead on election homestretch
Both parties push the need for new investment to tap non-US energy markets, but project permitting policy is a key differentiator, writes Brett Holmes Calgary, 25 April (Argus) — Canada's Liberal party is positioning itself to receive a fourth straight mandate on 28 April, but it must first fend off a late push by the Conservatives in an election campaign that has been closely watched by the energy sector. The Liberals have benefited from the selection of a new leader in Mark Carney last month, combined with a considerable foe to rally against — US president Donald Trump and his verbal and economic attacks on Canada. While campaigning, Carney has tried to keep the focus on Trump's annexation and economic threats, but momentum has seemingly stalled. The Liberals led the Conservatives by a 42:38 margin on 24 April, but this is three points less than 10 days earlier, according to poll aggregator 338Canada. The tight race has already motivated a record 7.3mn electors to cast their vote at advance polls, and the energy industry has kept a close eye on promises made by both Carney and his challenger, Conservative leader Pierre Poilievre. Both agree that pivoting away from a hostile US is critical, and that new trade corridors to Canada's coasts are key to reaching more reliable partners. But executives from major Canadian energy companies point out that there is likely to be lower-hanging fruit that can attract investment in a country where productivity has been lagging its peers. Industry leaders have pleaded for government to "reset its policies", which Carney seems less inclined to do than Poilievre. Carney sees a future where foreign countries will demand less carbon-intensive oil and gas, meaning a proposed cap on the industry's emissions would be implemented as planned, and support for carbon capture projects would continue under a Liberal government. An overhaul of Canada's Impact Assessment Act is unnecessary, Carney says, suggesting the legislation sets major project proponents up for success because its rigour helps to avoid court battles. But the Canadian Association of Petroleum Producers (Capp) points to that legislation as the top reason why C$280bn ($200bn) of oil and gas projects were cancelled over the past decade. Repealing the law was among the "demands" Alberta premier Danielle Smith made to Carney in March, but the latter seems content to hang on to many of former prime minister Justin Trudeau's energy policies. Carney was born in Alberta , but familiarity has yet to translate into co-operative relations between federal and provincial government. Yet his desire to build new conventional energy projects marks a key departure from Trudeau. Build, baby build "I'm interested in getting energy infrastructure built," Carney said during the 18 April leaders' debate. "That means pipelines, that means carbon capture and storage, that means electricity grids." And the Liberals are prepared to use federal emergency powers, but consent from provinces would still be required. The Conservatives pitch an accelerated six-month regulatory review period to "unleash" Canada's energy so as to stand up to the likes of Trump from a position of strength. The Conservatives tout shovel-ready projects that would kick-start construction as soon as they are approved by a new government. Capp estimates that Canada has C$50bn of energy investment waiting approval. "For three Liberal terms, Canada has had the worst GDP per capita in the G7," Poilievre says. The National Bank of Canada says this primarily reflects Canada's lacklustre investment and productivity over the past decade. Canadian think-tank CD Howe Institute says this cycle can be corrected by a full overhaul of government policy, including the acceleration of permitting for major private-sector projects. Eliminating current and proposed Liberal policy would be among Poilievre's first moves to resurrect investment. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU red tape ‘unsustainable burden’ for transition
EU red tape ‘unsustainable burden’ for transition
London, 6 February (Argus) — EU regulations in their current form are hindering rather than enabling the energy transition, limiting access to funding and slowing renewable installations, delegates at the Financial Times International Energy Policy Forum in Brussels heard this week. EU regulation has become "duplicative", Anthony Gooch Galvez, secretary general of the European Round Table for Industry (ERT), told delegates this week. "The burden is unsustainable" even for ERT members, which tend to be big companies, he said, pointing to the additional problems this would cause small to medium-sized businesses. The EU is "too prescriptive" and expects perfection from day one, Ann Mettler of Bill Gates-founded Breakthrough Energy said, leading to low-carbon technologies not being deployed. The "regulatory tsunami did not lead to the desired outcome", and the bloc should give more space to the private sector to support their development, she said. A lack of policy planning has contributed to the problem, Mettler said, pointing to the low number of final investment decisions that have been taken on hydrogen projects. Companies need to be able to implement their plans, she said. "Very cumbersome licensing and permitting processes" are also impeding progress in the region, IEA executive director Fatih Birol told delegates, calling for these to become "much more nimble". And while funding is technically on the table, it is often difficult to access, Gwenaelle Avice Huet of French firm Schneider Electric said, of which the EU's Recovery and Resilience Facility is a prime example. "It's not just about the level of money available." US presents opportunity But the stability of the EU's Green Deal, which was announced in 2021 and remains in place, does offer a stark contrast to the US, said Sebastien Treyer, executive director of think-tank the Institute for Sustainable Development and International Relations. Other speakers also noted the importance of stability and predictability within regulatory frameworks. "You need to have rules to play a good game", Galvez said. In the US, policy has fluctuated wildly between regimes, with president Donald Trump pausing some funding from the country's Inflation Reduction Act in the first days of his new term. This shift could mean US-based investors in the transition look to the EU for opportunities, said Marcin Korolec, president of the Green Economy Institute. "The federal government is not the whole of America. Many other economic players are still very willing to collaborate," Treyer agreed. But a lack of urgency from the European Commission could see the EU fail to capitalise on this, Korolec warned. He criticised in particular the bloc's planned competitiveness fund, announced last week, which would be funded under the EU's next budget starting in 2028, towards the end of Trump's term. "Sitting in a chair for three years waiting is absurd," he said. By Victoria Hatherick and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Trump tries again at faster energy permitting
Trump tries again at faster energy permitting
Washington, 27 January (Argus) — President Donald Trump is moving early in his second term to fast-track federal permitting by tapping into emergency powers he hopes will expedite approval of oil and gas infrastructure projects and electric transmission lines. Trump spent his first term promising a "massive" permitting overhaul that never materialised, after he was unable to achieve comprehensive updates through regulatory changes or a legislative deal in Congress. But in an executive order he signed on his first day in office that declares a "national energy emergency", he directed his administration to use emergency powers usually used to respond to issues such as natural disasters or short-term fuel shortages, to make it easier to build oil and gas pipelines, refineries and power plants. Trump's order argues that swift government action is needed because former president Joe Biden's policies have created an "emergency" under which energy supplies have become "precariously inadequate and intermittent" and the electric grid is "increasingly unreliable". It directs government agencies to use emergency powers to expedite issuance of water permits under the Clean Water Act and fast-track project reviews under the Endangered Species Act. It also asks regulators to "use all lawful emergency" powers to support the supply, refining and transportation of energy in the US west coast, northeast US and Alaska. But the White House will not offer expedited permitting for wind farms, which Trump detests and says should no longer be built. His administration has issued orders to stop leasing federal lands for wind farms, prompting an outcry from offshore wind group Turn Forward, whose executive director Hillary Bright sees a disconnect between declaring an energy emergency while impeding the buildout of wind power capacity, which is on track to grow by 60pc by 2028. Trump also rescinded a 1977 executive order supporting binding government-wide regulations for issuing environmental reviews of projects under the National Environmental Policy Act (NEPA). This provides a chance to overhaul processes under NEPA, a decades-old law that often requires time-consuming reviews of projects that can take years to prepare and are regularly challenged in court. Where's the emergency? But tapping emergency powers to expedite permitting and overhaul NEPA processes could face substantial risks in court. Energy projects approved using novel processes would almost certainly face a barrage of lawsuits from environmentalists, who see no legal justification to jettison standard permitting rules that have been in place for decades. "There is no energy emergency. There is a climate emergency," environmental group NRDC's president, Manish Bapna, says. Republicans in Congress are considering ways to expedite permitting using a filibuster-proof manouevre called ‘budget reconciliation', which they also intend to use to cut taxes, expand fossil fuel leasing and push through other parts of Trump's agenda. Arkansas Republican representative,and chairman of the House of Representatives Natural Resources Committee, Bruce Westerman says "certain parts of permitting" could qualify for that bill, so long as they affect the federal budget. Industry officials are urging lawmakers to create durable energy policy. But Trump's efforts to roll back wind, solar and other clean energy projects — one executive order pauses disbursement of all funds enacted under Biden's signature climate laws — could threaten the bipartisan support required to pass comprehensive permitting changes. Democrats last year were willing to support permitting changes to help pipelines, in exchange for fast-tracking the electric grid buildout needed to deploy vast amounts of renewable energy. Blocking clean energy projects would remove an incentive for compromise. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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