Cop 27: Talks stumble into extra time
The UN Cop 27 climate talks entered their first extra day with no agreement yet on a broad range of issues.
Cop 27 president Sameh Shoukry today said that work continues to find consensus all of the major issues at the talks in Sharm el-Sheik, Egypt, including loss and damage, adaptation and a mitigation work program.
Earlier talks "did not result in any clear direction toward consensus," leading to extensive negotiations up to and past the scheduled 18 November end date for the conference.
"After hearing the various perspectives, I as president developed text on all of the three issues that are balanced that I believe constitute a basis for moving forward," Shoukry said.
While none of the parties may feel that "all of their interests were reflected" in the new text, Shoukry said that the vast majority view it as "potential breakthrough" that could lead to consensus.
"The issues now rest with the will of the parties," he said. "It is the parties that much rise to the occasion."
Shoukry said the text "does keep 1.5 alive," and uses "necessary language that provides comfort in some quarters."
Loss and damage has been the top issue at this year's Cop, with developing countries pushing for agreement to great a funding facility under the UN Framework Convention on Climate Change (UNFCCC). The term is used to refer to the destructive effects of global warming, and is a priority for many vulnerable countries experiencing extreme climate-related events such as storms and rising sea levels.
The EU has sought to break the logjam with a proposal that would create a fund for the countries that are most vulnerable with contributions from a "broad funder" base that takes into account current economic situations. That would include countries like China, which has resisted being included on a funding list.
Austrian energy minister Leonore Gewessler this morning said that the "EU still stands by its offer" but that it cannot "afford a bad deal". "Now the others need to move too".
Related news posts
EU ETS in pricing ‘no man’s land’
EU ETS in pricing ‘no man’s land’
Florence, 17 April (Argus) — The EU emissions trading system (ETS) is sitting in a period between traditional price signals from the power sector and expected future industrial sources of price direction, delegates at a conference in Florence, Italy, heard today. The EU ETS is "right in the middle" of the transition phase from a power-centric to industrial-driven market, head of carbon markets at Spanish bank BBVA, Ingo Ramming, told the event, pointing to the fall in hedging of carbon allowances by the power sector as a result of renewable capacity buildout and reduced power demand in the current economic slowdown. Improvements in the economy could see more forward hedging by industrials, Ramming said. Aviation and shipping — the other sectors covered by the EU ETS in which decarbonisation has so far been limited — could be further ahead on this if they had synchronised their carbon hedging with their fuel hedging, Ramming added. But until industry steps in to fill the current gap, the EU ETS is "in no man's land", head of research at fund manager Andurand Capital, Mark Lewis, said. "Carbon this year is a price taker, not a price maker," head of market research and analysis at environmental commodities trading firm Vertis, Stefan Feuchtinger, said. "Carbon doesn't matter to the carbon price." But while Lewis sees this gap leaving space in the market open to the financial sector, attributing recent price direction and volatility to speculators, Feuchtinger believes there is still "significant" power hedging in the EU ETS, even if at much lower levels than in the past. Feuchtinger expects the carbon market to continue to be priced by the utility sector until 2026-27, when there is no longer sufficient coal in the market to justify this and pricing shifts to the industrial side. Where the carbon price will sit once it is set by industrials is "less straightforward", Feuchtinger said. Carbon capture and storage is key to this, he said, but depends on where it is based and which technology is used, requiring carbon prices in a range of €90-150/t of CO2 equivalent. And while carbon prices sitting well below these levels mean less action is currently being taken to develop solutions for industrial decarbonisation, this time delay will lead to larger price spikes in the future, he said. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Gulf lowest-cost green ammonia in 2030: Report
US Gulf lowest-cost green ammonia in 2030: Report
New York, 16 April (Argus) — The US Gulf coast will likely be the lowest cost source of green ammonia to top global bunkering ports Singapore and Rotterdam by 2030, according to a study by independent non-profits Rocky Mountain Institute and the Global Maritime Forum. Green ammonia in Singapore is projected to be sourced from the US Gulf coast at $1,100/t, Chile at $1,850/t, Australia at $1,940/t, Namibia at $2,050/t and India at $2,090/t very low-sulphur fuel oil equivalent (VLSFOe) in 2030. Singapore is also projected to procure green methanol from the US Gulf coast at $1,330/t, China at $1,640/t, Australia at $2,610/t and Egypt at $2,810/t VLSFOe in 2030. The US Gulf coast would be cheaper for both Chinese bio-methanol and Egyptian or Australian e-methanol. But modeling suggests that competition could result in US methanol going to other ports, particularly in Europe, unless the Singaporean port ecosystem moves to proactively secure supply, says the study. In addition to space constraints imposed by its geography, Singapore has relatively poor wind and solar energy sources, which makes local production of green hydrogen-based-fuels expensive, says the study. Singapore locally produced green methanol and green ammonia are projected at $2,910/t and $2,800/t VLSFOe, respectively, in 2030, higher than imports, even when considering the extra transport costs. The study projects that fossil fuels would account for 47mn t VLSFOe, or 95pc of Singapore's marine fuel demand in 2030. The remaining 5pc will be allocated between green ammonia (about 1.89mn t VLSFOe) and green methanol (3.30mn t VLSFOe). Rotterdam to pull from US Gulf Green ammonia in Rotterdam is projected to be sourced from the US Gulf coast at $1,080/t, locally produced at $2,120/t, sourced from Spain at $2,150/t and from Brazil at $2,310/t. Rotterdam is also projected to procure green methanol from China at $1,830/t, Denmark at $2,060/t, locally produce it at $2,180/t and from Finland at $2,190/t VLSFOe, among other countries, but not the US Gulf coast . The study projects that fossil fuels would account for 8.1mn t VLSFOe, or 95pc of Rotterdam's marine fuel demand in 2030. The remaining 5pc will be allocated between green ammonia, at about 326,000t, and green methanol, at about 570,000t VLSFOe. Rotterdam has a good renewable energy potential, according to the study. But Rotterdam is also a significant industrial cluster and several of the industries in the port's hinterland are seeking to use hydrogen for decarbonisation. As such, the port is expected to import most of its green hydrogen-based fuel supply. Though US-produced green fuels are likely to be in high demand, Rotterdam can benefit from EU incentives for hydrogen imports, lower-emission fuel demand created by the EU emissions trading system and FuelEU Maritime. But the EU's draft Renewable Energy Directive could limit the potential for European ports like Rotterdam to import US green fuels. The draft requirements in the Directive disallow fuel from some projects that benefit from renewable electricity incentives, like the renewable energy production tax credit provided by the US's Inflation Reduction Act, after 2028. If these draft requirements are accepted in the final regulation, they could limit the window of opportunity for hydrogen imports from the US to Rotterdam to the period before 2028, says the study. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
The Hague eyes higher tax for larger industry emitters
The Hague eyes higher tax for larger industry emitters
Florence, 16 April (Argus) — The Dutch government has decided to maintain the planned rate of increase of its CO2 tax on industry until 2028, after which it will apply a higher tax to emissions that are further over the levy's threshold. Industry tax measures put forward by the government in its 2024 tax plan package were rejected by the senate in December, prompting the government to reexamine the package in its spring memorandum published this week. The government has opted to maintain the current price path for its national CO2 tax on industry until 2028, beyond which point the first 50,000t of taxed emissions will continue on the same path, but for emissions beyond this level the tax will increase to €216 in 2030. This approach "takes into account the limited action prospects of some of the smaller emitters, without losing the incentive for the larger emitters in particular," the government said. The Dutch national CO2 tax on industry introduced in 2021 levies the difference between the EU emissions trading system (ETS) price and a tax level determined by the government, which rises every year, essentially setting a minimum carbon price for covered companies. For 2024, the tax stands at €74.14/t CO2 equivalent (CO2e), up from €55.94/t CO2e last year. The EU ETS benchmark front-year contract has closed at an average of around €61.95/t CO2e this year, Argus data show. The government has turned down a motion to include a hardship clause for companies unable to pay the levy because of "missing preconditions" as "legally and technically undesirable and impracticable", but has commissioned external research to investigate possible alternatives. The Dutch government intends to submit a draft climate plan for 2025-30 for public consultation by the autumn, it said in the memorandum. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Singapore consortium to form emissions registry
Singapore consortium to form emissions registry
Singapore, 15 April (Argus) — A consortium of firms led by the Singapore Business Federation (SBF) will set up a registry to help local businesses establish more accurate emission inventories, the SBF announced today. The SBP is partnering the Agency for Science, Technology and Research, consultancy PwC and telecommunications group Singtel to set up the Singapore Emission Factors Registry (SEFR). The first phase of the registry is targeted to be ready by the end of this year. The SEFR will consist of an emission factors (EFs) database that is reflective of local conditions, according to the SBF. The EFs will allow for the conversion of business activities into greenhouse gas emissions. More details on how this conversion will be carried out were not provided, although the SEFR "supports existing reporting tools and solutions in the ecosystem that help enterprises automate their sustainability reporting process," said the SBF. Singapore businesses are currently using EFs from international sources such as the US Environmental Protection Agency and UK Department for Environment, Food and Rural Affairs in their carbon emissions reporting, especially for scope 3 emissions. The "localised" EFs will be developed in phases, and the initial base load for the first phase will be made up of data from various government agencies, in relation to transportation, water, general waste and energy. EFs for additional categories will be developed and released based on demand and after industry consultations. Three-quarters of local businesses have already implemented or plan to implement environmental, social and governance (EGS) practices into their operations, according to a survey by the SBF. But 60pc of businesses stated they require support in areas of funding, greater clarity on EGS reporting metrics and access to ESG tracking and measurement technology. "With the development of localised EFs, local businesses will be able to report their emissions more accurately," said SBF chief executive Kok Ping Soon. "The SEFR is part of a broader suite of programmes that SBF will progressively be rolling out to support businesses in their net zero transition," he added. This is the latest in a series of moves Singapore has taken to create a carbon market as part of its decarbonisation efforts. The country in June last year launched a spot trading platform for carbon credits . It subsequently in December published a list of eligible international carbon credits under the International Carbon Credit framework, which companies can use to offset up to 5pc of their carbon tax liability , in lieu of paying the carbon tax. Singapore's carbon tax has been set at S$25/t ($18/t) for 2024-25 and will subsequently be raised to S$45/t in 2026-27. The tax will be reviewed with a long-term view of increasing it to S$50-80/t by 2030. By Prethika Nair 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