Overview

Argus provides key insights into the developments and discussions at Cop. We shine a light on how they will affect the global energy and commodity markets.

Decisions made at Cop meetings have far-reaching effects on the markets we serve. Almost 200 countries agreed on "transitioning away from fossil fuels in energy systems" and tripling renewable power capacity at the UN Cop 28 summit in Dubai last year.

Progress at the next two meetings will be crucial in transforming ambitions into actions aligned with the Paris Agreement. Countries must get new plans ready for 2025.

This year, Cop 29 will focus on climate finance. It will cover funding energy transition in developing countries, and increasing private sector involvement and sectorial investment. Article 6 and voluntary carbon markets discussions will also take centre stage. 

Follow the key developments in energy transition field with our Net zero page and keep up to date with ongoing coverage of these issues by following Argus Media on LinkedIn and on X.

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Brazil issues guidelines for Amazon power program


22/07/24
News
22/07/24

Brazil issues guidelines for Amazon power program

Sao Paulo, 22 July (Argus) — Brazil's mines and energy ministry presented the initial guidelines for a program that aims to reduce power generation costs in the Amazon basin. The program also aims to reduce the carbon footprint of power generated in the Amazon basin. The government plans to hold public hearings to define the eligibility criteria for projects that can participate in the program. The program will use funds from the 2022 privatization of power company Eletrobras. The firm transferred R924mn ($166.7mn) to the federal government on 31 January. By law, these funds need to be used to reduce power generation costs and expand power transmission investments in the Amazon basin. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Urgent action needed for UK to hit net zero goals: CCC


18/07/24
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18/07/24

Urgent action needed for UK to hit net zero goals: CCC

London, 18 July (Argus) — The UK increased the rate at which it reduced greenhouse gas (GHG) emissions last year, but "urgent action" is needed for the country to meet its targets in 2030 and beyond, independent advisory body Climate Change Committee (CCC) said in its progress report published today. The report assesses the UK's progress towards its net zero goals against policy set out by the previous Conservative government. The new Labour government, which has been in power since 5 July, has already set the scene for a stronger decarbonisation agenda , but it "will have to act fast to hit the country's commitments", the report says. The committee tracked progress on 28 key indicators. Of the 22 that have a benchmark or target, only five are assessed as being "on track". The UK's GHG emissions last year stood at 393mn t/CO2 equivalent (CO2e), down on the year by 5.4pc, or 22mn t/CO2e, provisional data show. This estimate excludes contributions from international aviation and shipping, as these are not included in the UK's 2030 target of a 68pc cut in GHG emissions from a 1990 baseline. And last year's reduced emissions resulted primarily from a drop in gas demand, the CCC says. Combined gas demand in 2023 averaged 156mn m³/d, down from nearly 175mn m³/d a year earlier. While progress has been made, the previous administration "signalled a slowing of pace and reversed or delayed key policies", the report says. The reduction in emissions last year is "roughly in line with the annual pace of change needed" to reach the 2030 target, but the average annual rate over the previous seven years is "insufficient", the committee says. The new government has placed strong focus on decarbonising electricity in its first days in office, but this is "not enough on its own", CCC acting chief executive James Richardson said. The average annual rate of GHG reduction outside the electricity supply sector over the previous seven years was 6.3mn t/CO2e, but this will need to more than double until 2030 if the UK is to meet its targets, the CCC says. In order to reach targets, "annual offshore wind installations must increase by at least three times, onshore wind installations will need to double and solar installations must increase by five times" by 2030. By comparison, oil and gas use should be "rapidly" reduced and the expansion of the production of fossil fuels should be limited, according to the report. The CCC also recommended that about 10pc of UK homes will need to be heated by a heat pump by 2030, in comparison with about 1pc today. The committee criticised the exemption of 20pc of properties from the 2035 phase-out gas boiler plan, saying it is "unclear" how the exemption would reduce costs as fewer consumers would have to pay to maintain the distribution grid. Gas-fired power generation in recent months has dropped on the back of high wind output and brisk power imports. Power-sector gas burn was 25mn m³/d in March-June, roughly half of the three-year average for the period. But if UK power demand increases with electrification, gas-fired power generation could maintain its role in the country's power mix, particularly if it is combined with carbon capture, use and storage technology, for which fast development and scale-up will need to happen this decade, the CCC says. "Biases" towards the use of natural gas or hydrogen must be removed where electrification is the most economical decarbonisation solution in an industry sector. Power prices need to be reduced "to a level that incentivises industrial electrification". Oil, gas industry to meet climate goals The UK's oil and gas sector "is on track to meet its own climate goals and is not slowing down", offshore industries association OEUK said today in reaction to the CCC's report. The UK needs a plan for reducing oil and gas demand and cutting its reliance on imports, according to OEUK chief executive David Whitehouse. "We should be prioritising our homegrown energy production," he said. The sector reduced its emissions by 24pc in 2022 from 2018, meaning it met its target to reduce emissions by 10pc by 2025 early. The industry halved its flaring and venting and cut methane emissions by 45pc in 2022 compared with 2018, Whitehouse said. OEUK plans to reduce emissions by a quarter by 2027 and by half by 2030 against 2018 levels. And it aims to achieve net zero by 2050. By Georgia Gratton and Jana Cervinkova Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Urgent action needed for UK to hit net zero goals: CCC


17/07/24
News
17/07/24

Urgent action needed for UK to hit net zero goals: CCC

London, 17 July (Argus) — The UK increased the rate of reduction in its greenhouse gas (GHG) emissions in 2023, but "urgent action" is needed if the country is to hit its targets in 2030 and beyond, the independent advisory Climate Change Committee (CCC) found today. The report assessed the UK's progress towards its net zero goals against policy set out by the previous Conservative government. The new Labour government, which has been in power since 5 July, has already set the scene for a stronger decarbonisation agenda . But it "will have to act fast to hit the country's commitments", the CCC said. The committee tracked progress on 28 key indicators. Of the 22 that have a benchmark or target, just five are assessed as "on track". The UK's GHG emissions stood at 393mn t/CO2 equivalent (CO2e) in 2023, down by 5.4pc, or 22mn t/CO2e, on the year, provisional data show. This estimate excludes contributions from international aviation and shipping, as these are not included in the UK's 2030 target of a 68pc cut in GHG emissions, from a 1990 baseline. The UK's GHG emissions including the country's share of international aviation and shipping were 423.3mn t/CO2e in 2023, preliminary data show, 49.5pc lower than in 1990. The drop in GHGs has largely been driven by the decrease in coal-fired power generation over that time span. Although progress has been made, the previous administration "signalled a slowing of pace and reversed or delayed key policies", the CCC noted. The reduction in GHG emissions in 2023 is "roughly in line with the annual pace of change needed" to hit the 2030 target, but the average annual rate over the previous seven years is "insufficient", the committee added. The UK's 2030 emissions reduction goal is the first in line with reaching net zero by 2050. The new government has placed strong focus on decarbonising electricity in its first days in office, but this is "not enough on its own", CCC acting chief executive James Richardson said. The average annual rate of GHG reduction outside the electricity supply sector over the previous seven years was 6.3mn t/CO2e, but this will need to more than double to 2030 if the UK is to meet its targets, the CCC found. The committee found that in order to reach targets, "annual offshore wind installations must increase by at least three times, onshore wind installations will need to double and solar installations must increase by five times" by 2030, while oil and gas use should be "rapidly" reduced. The CCC also recommended that around 10pc of UK homes will need to be heated by a heat pump by 2030, in comparison to approximately 1pc today. And the market share of new electric cars needs to increase to "nearly 100pc" by 2030, from a current share of 16.5pc. Labour pledged in its manifesto to restore the 2030 phase-out date for sales of new gasoline or diesel-fuelled cars, while it has set ambitious targets for renewable energy installations and pledged zero-carbon power by 2030. It has also committed to no new oil, gas or coal licences. 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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Climate finance goal is top priority: Cop 29 president


17/07/24
News
17/07/24

Climate finance goal is top priority: Cop 29 president

London, 17 July (Argus) — Addressing and aiming to finalise a new climate finance goal will be the "centrepiece" of the UN Cop 29 climate summit, the event's president, Mukhtar Babayev said today. Cop 29 is scheduled to take place in Baku, Azerbaijan, on 11-22 November. Babayev — officially Cop president-designate until the summit begins — is the country's ecology and natural resources minister. The Cop 29 presidency's "top negotiating priority is agreeing a fair and ambitious" new climate finance goal — known as the new collective quantified goal (NCQG) — Babayev wrote in a letter to countries and other stakeholders. He had previously been clear that finance will be a key topic at Cop 29. The NCQG represents the next stage of the $100bn/yr of climate finance that developed countries agreed to deliver to developing countries over 2020-25. But much is still up for discussion and must be finalised at Cop 29, including the amounts involved and timeframe. Babayev noted "disagreements", flagging that "the politically complex issues will not be solved by negotiators alone". The Cop 29 presidency has appointed Egyptian environment minister Yasmine Fouad and Danish climate minister Dan Jorgensen to lead consultations on the NCQG, Babayev said today. Announcements on ministerial pairs for other issues are expected in September, he said. "Adopting the NCQG will be a pivotal moment for whether parties can make progress on the means of implementation and support, and the Paris Agreement more broadly", Babayev said. Climate finance needs a "substantial increase", and the presidency "will spare no efforts to act as a bridge between the developed and developing nations", he added. Babayev also called for more financial pledges to the loss and damage fund , which countries agreed at Cop 27 to establish, to address the unavoidable effects of climate change in vulnerable countries. He encouraged all countries to submit national climate plans — known as nationally determined contributions (NDCs) — aligned with the Paris agreement, which seeks to limit the rise in global temperature to "well below" 2°C above pre-industrial levels, and preferably to 1.5°C. "The Cop 29 presidency will lead by example", Babayev said. Azerbaijan and its "Troika" partners, Cop 28 host the UAE and Cop 30 host Brazil, are working on 1.5°C-aligned NDCs, he said. The Article 6 mechanism of the Paris agreement, which relates to international carbon trading, will also be a priority at Cop 29, Babayev said. The presidency "is committed to finalising the operationalisation of Article 6 this year", he added. Cop 28 ended without a deal on Article 6, but "in recent months… there was clear will to advance work" on the topic, Babayev said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop party profiles

Cop party profiles
17/11/23

US hopes for show of unity with Mexico at Cop 28

US hopes for show of unity with Mexico at Cop 28

Washington, 17 November (Argus) — US president Joe Biden urged his Mexican counterpart, Andres Manuel Lopez Obrador, to step up their countries' cooperation on climate issues ahead of the upcoming Cop 28 UN climate conference. The US wants to demonstrate at Cop 28 that "the US, Mexico and Canada are working in lockstep on this issue," a senior US official told reporters following today's meeting of the two leaders at the Asia-Pacific Economic Cooperation forum in San Francisco. The two presidents did not directly address an ongoing trade dispute related to energy , which remains on track to be resolved within the US-Mexico-Canada free trade agreement. The US complaint centers on Mexico's attempts to dial back the 2014 energy reform over the last five years with laws to favor state-owned Pemex's position in the Mexican fuels market, curtail private-sector renewable energy development and prioritize state utility CFE power dispatch. Biden and Lopez Obrador "acknowledged that we have a broad and deep economic relationship, and like in any sort of any such relationship there will be disagreements," the senior US official said. "We have mechanisms where we're going to work through those issues in a way that is respectful and characteristic of what is one of the most consequential and strategic economic relationships that the US has." Climate change policies is another area of disagreement between the two governments, and it is not clear if Biden's call for additional action will succeed. While Mexico agreed last year to a tougher new greenhouse gas reduction target of 35pc by 2030 from a 2000 baseline, development of new clean energy capacity has been limited to the first 125MW phase of the 1GW Puerto Penasco solar plant and the upgrade of a series of hydroelectric plants. Energy regulator CRE in May approved changes reclassifying gas-fired combined-cycle plants as clean energy sources, allowing them to contribute to Mexico's target of generating 35pc of its power from clean energy by 2024. Giving priority to legacy gas-fired generation forms a core part of the US complaint, as they put US-funded renewable power projects in Mexico at a disadvantage. Biden's meeting with Lopez Obrador has prioritized cooperation to curb migration and drug trafficking. "We've seen our cooperation to address historic levels of migration and I want to thank you, Mr. President and your team, for the cooperation, your leadership, you taking on this challenge," Biden told Lopez Obrador. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2023. Argus Media group . All rights reserved.

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Cop party profiles

EU wants more than renewables at Cop 28


17/11/23
Cop party profiles
17/11/23

EU wants more than renewables at Cop 28

Wopke Hoekstra hopes delivering on the bloc's climate targets will strengthen its hand in Dubai, writes Dafydd ab Iago Brussels, 17 November (Argus) — The EU's newly appointed climate commissioner, Wopke Hoekstra, wants the UN Cop 28 climate talks to achieve more than an agreement on renewables and energy efficiency goals, with any EU wins tied to progress on loss and damage funding and questions over how substantial the EU contribution can be. Hoekstra said earlier this year that agreeing on a goal of tripling global renewable energy capacity and doubling rates of energy efficiency by 2030 will not be enough to call Cop 28 a success. He suggested a focus on "unabated" progress when it comes to phasing out fossil fuels was not sufficient. Pressure has been mounting ahead of Cop 28 for parties to agree on language signalling the need to reduce output and demand of all fossil fuels, after India last year suggested broadening the focus from coal. But the EU's position lacks agreement timelines. European Commission president Ursula von der Leyen said in September that unabated fossil fuels need to be phased out "well before 2050", while the bloc's environment ministers have not agreed on a specific deadline. The EU parliament has called for a "tangible" phase-out of fossil fuels as soon as possible. But Hoekstra has not committed to a deadline . This lack of detail may forebode the same lack of progress towards a phase-out as at last year's Cop 27 in Sharm el-Sheikh. Yet Hoekstra has been linking progress at Cop 28 on the operationalisation of a loss and damage fund — for compensating irreversible climate change, as agreed in Sharm el-Sheikh last year — to success in climate mitigation, or cutting emissions. "If we make enough progress on mitigation, the fund can be launched in Dubai, with the first pledges too," he said earlier this month. This week he promised a "substantial financial contribution" from the EU, but once again tied to an "ambitious outcome" for mitigation and adaptation. Money's too tight But the EU did not say how much it will contribute to the fund, and squeezing out more money from the bloc, the world's largest climate donor, could prove difficult. Aware of those limits, Spain's climate minister Teresa Ribera has re-floated the idea of fossil fuel companies dedicating a share of profits to sustainable development in the most vulnerable countries. This could find support at Cop 28. Hoekstra supports exploring a range of fossil fuel taxes, and using a share of proceeds from the EU emissions trading system for climate finance. EU finance ministers have reaffirmed their "strong" commitment to developed countries collectively mobilising $100bn/yr in climate finance through to 2025. Another idea pushed by Von der Leyen at a recent climate summit in Nairobi was for global carbon pricing and true carbon credits at Cop 28. She also noted the need to include and reward carbon sinks. Just 23pc of the world's greenhouse gas (GHG) emissions are covered by either a carbon tax or an emissions trading system, according to World Bank analysis, but this is up from 7pc a decade earlier. A new EU agreement on methane regulation could strengthen the bloc's hand. The EU and US were behind a Global Methane Pledge, launched at Cop 26 in Glasgow. "The EU has one more law to demonstrate to our international partners that we are delivering on our climate targets," Hoekstra says. The EU has spent recent months adopting legislation to reform its own climate policies in line with its stricter 2030 emissions target to cut GHG emissions by at least 55pc compared with 1990 levels. With finished laws on the statute book now pushing the EU towards a 42.5pc renewables share in final energy consumption, and a projected 57pc GHG emissions cut by 2030, Hoekstra is also airing a new policy with 85-90pc GHG emissions cuts by 2040. Send comments and request more information at feedback@argusmedia.com Copyright © 2023. Argus Media group . All rights reserved.

Cop party profiles

Australia seeks climate progress at Cop 28


10/11/23
Cop party profiles
10/11/23

Australia seeks climate progress at Cop 28

Delivering on its climate pledges will involve the country's transition from fossil fuel to green energy superpower, writes Tom Major Sydney, 10 November (Argus) — Australia has pledged to support the UN climate summit Cop 28 presidency to strive for "ambitious and concrete outcomes" to reduce greenhouse gas (GHG) emissions, but it is sticking to its emissions targets even though they are deemed insufficient to keep to the goals of the Paris Agreement. The country's engagement in climate negotiations has stepped up after the election of a Labor government in May last year, and it is now seen as playing a much more constructive role. Australia was one of the few countries to have updated its 2030 nationally determined contribution (NDC) — or climate pledge — last year, as requested in the Glasgow pact made at Cop 26. Its government legislated a deeper cut to GHG emissions by 2030 to a 43pc reduction from 2005, compared with a previous 26-28pc reduction. But this still falls short of the 75pc cut needed to help limit the global temperature increase to 1.5°C, which was advocated by the minority Green party. Canberra has, however, permanently , as part of its commitment to not using carryover carbon credits for any future emissions-reduction targets. It had faced criticism that those units enabled the country to increase emissions under the Kyoto crediting period by 8pc above 1990 levels. Shaky targets The country has also committed to an 82pc renewable energy target by 2030 as it phases out its coal-fired power generation, but major projects designed to help reach this goal have been delayed because of rising costs. Renewables represented 39pc of generation across the National Electricity Market in the year to March 2023, but new investment has slumped in recent months. And with committed renewable energy projects standing at just 400MW in the first half of 2023, Australia is on track to fall well short of the 5 GW/yr required to meet its 82pc goal. The Australian Energy Market Operator (Aemo) has reiterated warnings that the country may fail to replace its coal-fired power generation unless obstacles including increasing project costs, falling investment levels and skilled labour shortages are addressed. In the September quarter, the states of New South Wales and Victoria said they were making plans for coal-fired power plants, on which they are heavily reliant for their energy needs, to remain open beyond or up to their planned closures — scheduled between 2025 and 2035 . Australia's renewable targets also face issues with grid capacity. The national grid is creaking under the strain of new generation projects and requires tens of billions of dollars in new transmission capacity. But labour shortages, community opposition and inflation are creating headwinds for developers. And although offshore wind has been touted as a solution to the headaches associated with land-based development, planned zones remain uncertain because of environmental and cultural heritage concerns. Emissions from electricity were 3.9pc down on the year for the year to 30 March, attributed to greater renewable power uptake. But electricity-related emissions, which the department of climate change, energy, environment and water expects will do much of the heavy lifting until 2035, will not decrease to the projected 2030 target if coal-fired power continues to dominate the grid. Australia's emissions were 466mn t of CO2 equivalent (CO2e) in the year to March 2023 — 24pc below emissions in the year to June 2005, the baseline year for Australia's 2030 target under the Paris Agreement — but up fractionally on the 465.5mn t CO2e recorded for the previous 12 months on a post-Covid recovery in transport and a rise in agriculture-related emissions. Some progress on emissions reduction could come from the start of Australia's enhanced safeguard mechanism from 1 July. It requires major emitters of more than 100,000 t/yr of CO2e to cut emissions by 4.9pc/yr until 2030. And although the mining and energy sectors continue to struggle for solutions to reduce emissions, investment in battery-powered mine vehicles and green power grids for remote operations to reduce diesel use is gathering momentum. But Climate Action 100+, the world's largest green investor alliance, has released assessments of 14 Australian emissions-heavy firms, showing that 57pc have fully disclosed their net zero commitments but lack short-term targets to meet them. Only 7pc of them currently meet the group's short-term — to 2025 — GHG reduction target covering at least 95pc of Scope 1, 2 and 3 emissions. Australia has promised that sectoral emissions-reduction strategies to cut output from five emissions-intensive areas will be developed by mid-2024 on the recommendation of the government's Climate Change Authority (CCA), which is also tasked with updating Australia's 2030 target with a new 2035 goal by the end of next year. Reality check The country might find itself at odds with calls at Cop 28 to speed up the phase-out of coal-fired power generation, at a time when global coal use keeps hitting record highs. It is also under pressure from its trading partners to continue supplying LNG and coal, amid worldwide energy security concerns, while state governments reliant on coal royalty payments and seeking cheaper domestic gas continue to approve new mines and natural gas fields. Australia is forecast to increase its thermal coal exports to 196mn t from 178mn t in 2022. Most vocally, energy trade partner Japan has promised to continue financing foreign fossil fuel projects, as long as it is necessary for its energy security and geopolitical interests. This comes despite Tokyo's pursuit of renewables, nuclear and cleaner fuels such as sustainably sourced hydrogen and ammonia. With few renewable energy prospects of their own, Japan and South Korea are regarded as key investors in Australia's green hydrogen export ambitions, leading Canberra to reassure Tokyo and Seoul that it remains a reliable trade partner. In the wake of the US Inflation Reduction Act (IRA), Australia has initiated its own A$2bn ($1.27bn) hydrogen production subsidy known as Hydrogen Headstart, which plans to subsidise two or three major projects, targeting 1,000MW of electrolyser capacity by 2030. The first subsidies are expected to be paid in the 2026-27 fiscal year. The government is also keen to tout the nation's reputation as a safe, reliable investment environment to drive a critical minerals sector that it hopes will replace jobs lost in fossil fuel industries in years to come. With most of Australia's lithium exported because of a lack of downstream processing capacity, a national battery strategy is being designed to develop onshore processing. Australia's lithium concentrate production is predicted to rise to 4mn t in 2024-25 from 3.1mn t in 2022-23, mainly driven by mine expansions and new mines — after it grew by around 50pc on the year in January-June. With increased demand also expected for its aluminium, copper and nickel output in the next two years as the world decarbonises, Canberra is seeking closer ties with the US for investment in its critical minerals sector. Ahead of Australia's expected role in co-hosting Cop 31 in 2026, greater scrutiny is likely to come to bear on the fossil-fuel dependent nation, which faces serious headwinds in realising its stated goal of turning its resources-rich economy into a net zero, green energy superpower for the coming decades. Australia Cop 28 contribution (mn t CO2e) 2005 2020 2030 2035 Electricity 197 172 62 58 Other sectors 424 326 307 265 Total 621 498 368 323 — DCCEEW Send comments and request more information at feedback@argusmedia.com Copyright © 2023. Argus Media group . All rights reserved.

Cop party profiles

Africa claims leadership role in global climate fight


10/11/23
Cop party profiles
10/11/23

Africa claims leadership role in global climate fight

African countries need to see an overhaul of global financial support to leapfrog their economies straight to low-carbon energy, writes Elaine Mills Cape Town, 10 November (Argus) — African heads of state have reframed Africa's role in the global climate-change crisis by asserting a new leadership status for the continent and underscoring its abundant clean energy minerals and renewable energy resources as a potential solution. In return, they called for debt relief for African countries, a global carbon tax and a raft of reforms of the international financial system to support climate action on the continent and worldwide. The proposal formed part of the "Nairobi declaration" issued at the inaugural Africa Climate Summit in Nairobi, Kenya, in September. This will underpin Africa's common position in negotiations at the UN Cop 28 climate conference in the UAE later this month, and beyond. Leaders committed to aiding global decarbonisation efforts by leapfrogging traditional industrial development, striking a different tone to their previous rhetoric, which was that Africa would pursue industrialisation by any means, including continuing to exploit its domestic oil and gas resources. According to Kenyan president William Ruto, renewable energy can be just as strong a driver of Africa's economic development as oil and gas. So Kenya will still press ahead with its plans to develop its oil and gas reserves, but just not as a priority, he said. But Kenya's stance contrasts with other African hydrocarbon producing countries, such as Uganda, Nigeria and Senegal, which say that they need to tap their oil and gas resources to develop their economies. The IEA, in its Africa Energy Outlook 2022, said that Africa's industrialisation will partly rely on exploiting its more than 5 trillion m³ of natural gas that has been discovered but not been approved for development. Cumulative greenhouse gas emissions from the use of these gas resources over the next 30 years would bring the continent's global emissions share to only 3.5pc, the IEA says. As Africa is the continent most vulnerable to climate change, African leaders have depicted it as a victim of a crisis created by the industrialised world. As such, they insist that Africa will chart a "just energy transition" of its own choosing without being dictated to by the west. But at the Nairobi summit, they signalled more willingness to take part in the global shift away from fossil fuels — and to take advantage of the economic development opportunities this holds for Africa. "The Africa Climate Summit asserted new leadership on global climate action from the continent most vulnerable to its impacts," E3G programme lead for climate diplomacy and geopolitics Alex Scott said. Ruto shepherded a declaration by African leaders calling for accelerated climate action, mobilising a massive scale of investment in green transition and adaptation in Africa, and reforming the finance system for fairer financing and debt management, Scott said. Climate-positive thinking World leaders should "appreciate that decarbonising the global economy is also an opportunity to contribute to equality and shared prosperity", the summit declaration says. "We urge world leaders to rally behind the proposal for a [global] carbon taxation regime including a carbon tax on fossil fuel trade, maritime transport and aviation," it adds. This could be supplemented by a global financial transaction tax to fund climate-positive investments, which should be ring-fenced from geopolitical and national interests, the declaration suggests. African leaders also called for "a new financing architecture that is responsive to Africa's needs" and "collective global action to mobilise the necessary capital for both development and climate action". As part of this, they want to see debt restructuring and relief for African nations, a 10-year grace period on interest payments, an extension of sovereign loans, and debt repayment pauses when climate disasters strike. With these aims in mind, they suggest a new global climate finance charter should be developed through UN and Cop processes by 2025. They also appealed for an increase in concessional finance to emerging economies, as well as reforms of the international financial system to ease the high cost of capital for African nations. "The scale of financing required to unlock Africa's climate-positive growth is beyond the borrowing capacity of national balance sheets, or at the risk premium that Africa is currently paying for private capital," the declaration says. Africa's annual climate finance needs total $250bn, but it only receives 12pc of this, according to the non-profit Climate Policy Initiative. African leaders further called for a range of measures to "elevate Africa's share of carbon markets". The International Emissions Trading Association (Ieta) welcomed African countries' increasing interest in carbon markets and expressed hope that more would set up carbon pricing programmes to enable stronger national emissions-reduction contributions. But it baulked at the idea of a global carbon tax, which is "unlikely" to gain political traction, and highly difficult to manage centrally by the UN Framework Convention on Climate Change or any organisation. A more practical and speedy approach would be to expand the use of national carbon markets that recognise a common pool of international carbon credits, Ieta said. "This could channel large amounts of private-sector capital to climate mitigation opportunities in Africa under Article 6 of the Paris climate agreement." The leaders called for global and regional trade mechanisms to be designed in such a manner that "African products can compete on fair and equitable terms". In support of this, they called for unilateral and discriminatory measures such as environmental trade tariffs to be eliminated. In return, they committed to aid global decarbonisation efforts by "leapfrogging traditional industrial development and fostering green production and supply chains on a global scale". They expressed concern that only 2pc of $3 trillion in renewable energy investments in the past decade have come to Africa, despite the fact that the continent has an estimated 40pc of the world's renewable energy resources, according to the declaration. We're all in this together African leaders called on the international community to contribute towards increasing the continent's renewable power generation to at least 300GW by 2030 from 56GW in 2022. Meeting this target will cost an estimated $600bn and will require a tenfold increase in capital flowing into Africa's renewable energy sector over the next seven years, they said. The UAE pledged $4.5bn to accelerate the development of clean energy projects, which far exceeded the pledges of other governments, such as the US, the UK and those in the EU. Developed countries have come under fire after missing a goal set in 2009 to provide $100bn/yr in climate financing to developing countries by 2020. The target may finally be hit this year. Just a few days after the Africa Climate Summit, the G20 summit in Delhi echoed the Nairobi declaration's clarion call for an overhaul of the global financial system. The Delhi declaration included new language on the issue of global debt, proposed that the World Bank should be reformed to address the growing economic strains on poorer countries and advocated more financing to help vulnerable nations deal with the costs of climate change. It also showed agreement on raising investment in energy transition and climate finance from "billions to trillions" of dollars. The declaration highlighted that $5.8 trillion-5.9 trillion was needed pre-2030 to help developing nations implement their nationally determined contributions, as well as $4 trillion/yr for clean energy technologies by 2030 to reach net zero emissions by 2050. Whether African countries can advance their call for a radical reform of the global financial system at Cop 28 will be key to affirming their proclaimed new leadership role in global climate talks. Send comments and request more information at feedback@argusmedia.com Copyright © 2023. Argus Media group . All rights reserved.

Cop party profiles

Brazil eyes climate leadership role at Cop 28


03/11/23
Cop party profiles
03/11/23

Brazil eyes climate leadership role at Cop 28

Tackling Amazon deforestation is a key climate goal, but offshore exploration plans remain controversial Sao Paulo, 3 November (Argus) — Brazil is heading to the UN's Cop 28 climate summit in Dubai to showcase recent successes in the fight against deforestation, and to show that its pariah days in the global environmental debate are over. But controversies over an oil and gas project in the Foz do Amazonas basin and delays in key legislation approvals could call the country's aspiration to a climate leadership role into question. Brazilian president Luiz Inacio Lula da Silva has focused on policies that will not only improve the country's image abroad, but also put it on track to becoming one of the few nations to meet its 2030 emissions-reduction targets. Deforestation in the Amazon basin fell by 42.5pc in January-July compared with the same period in 2022, its lowest in five years, on the back of measures implemented by Lula's government. But the country will need to implement additional policies to meet an ambitious target of eliminating deforestation by 2030. The Cerrado region posted a 21.7pc increase in deforestation in the same period. Lula is expected to spearhead pressure on wealthy countries to fulfil a decade-old pledge to support developing countries in their efforts to reduce emissions and transition to a low-carbon economy. This has been a recurring theme in his diplomatic missions and he will lead efforts to unite developing countries in Latin America to vocalise demands on climate finance. The government is also pushing a legislative agenda that aims to boost investment in decarbonising the economy. Its ecological transition plan seeks to revive the economy and up investment in renewable energy and environmental preservation, while reducing poverty and social inequality. The government has been working on developing financing mechanisms, including green bonds, which will offer low-interest loans to projects to finance the plan. Unlike developed countries, Brazil does not have enough federal funding to offer massive subsidies. And its efforts to bolster investment include a passing a series of decarbonisation bills in the legislature. A long-awaited bill to create a local carbon market passed the senate earlier this month and is being debated in the lower house, and the senate approved a bill that will regulate carbon capture and storage as well as legislation regulating the offshore wind sector. Flight path Other legislation is currently being debated in the lower house, including the so-called fuels of the future bill. It will establish blends for sustainable aviation fuel and set emissions-reduction targets for the aviation sector. The legislature is working with the government to develop new regulations for hydrogen, including potential incentives. But for Brazil, the road to net zero must guarantee energy security and affordability alongside sustainability, and its oil and gas sector will continue to play a key part in the national energy mix. Lula, with mines and energy minister Alexandre Silveira, is pushing for regulators to approve offshore drilling in the Foz do Amazonas basin, an environmentally sensitive region off Brazil's northern coast, although environmental regulator Ibama rejected state-controlled oil company Petrobras' request to drill an exploration well in the region. The push for oil and gas could put Brazil's environmental credentials to the test at Cop 28, as could the fact that the country is unlikely to increase its climate ambitions in the short term. It has reinstated stricter greenhouse gas emissions-reduction targets in its nationally determined contribution climate targets, but it is unlikely to update its goals until Cop 30, which it will host in 2025. And the decision to exclude the agriculture sector from Brazil's carbon market bill will make more difficult the already immense task of reducing emissions from land use. Brazil CO2e emissions 2021 Send comments and request more information at feedback@argusmedia.com Copyright © 2023. Argus Media group . All rights reserved.

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