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Cop 27: Impasse on fossil fuels despite last hour push

  • Spanish Market: Crude oil, Natural gas
  • 24/11/22

The final text from the UN Cop 27 climate summit fell short on efforts to reduce greenhouse gas (GHG) emissions, with no mention of additional curbs on fossil fuels, the largest contributors to global warming, although the issue was debated until the very last minutes of the conference.

This year's Cop was set against a backdrop of rising energy costs and concerns about energy security, with the summit designed to tackle the climate crisis — the third issue of the energy trilemma.

More than 80 countries supported phasing out unabated fossil fuels, EU executive vice-president and lead negotiator Frans Timmermans said. "Sadly, we don't see this reflected here [in the final text]", Timmermans said in his closing speech as the plenary wrapped up on 20 November.

The call for language around curbing fossil fuels did not seem to be one united effort, and the EU cautioned against including coal and gas in the same group, given how much more polluting coal is.

The inclusion of fossil fuels in the final text remained up for discussion until the final few hours of the conference — which ran over by almost two days, and was the second-longest Cop on record — delegates told Argus on the sidelines. Countries with varying degrees of ambition but supportive of phasing out fossil fuels — including Norway, Denmark, Finland, France, Germany, the UK, Colombia and several vulnerable and small island developing states — made "very strong statements", but they faced a battle even to uphold last year's Glasgow Climate Pact, ministers said. The text was "backsliding" from Glasgow's, even in the final hours of negotiations, Tuvalu's finance minister Seve Paeniu told Argus.

"Those of us who came to Egypt to keep 1.5° alive… have had to fight relentlessly to hold the line", UK lead negotiator and Cop 26 president Alok Sharma said in his closing speech on 20 November, in reference to the Paris Agreement's commitment to limit global warming to 1.5°C.

"Many parties, too many parties, are not ready to make more progress today in the fight against the climate crisis. There were too many attempts to even roll back what we agreed in Glasgow", Timmermans said on 20 November.

The final text treads very lightly on any language around fossil fuels, instead calling on parties "to transition towards low-emission energy systems, including by rapidly scaling up the deployment of clean power generation and energy efficiency measures, including accelerating efforts towards the phase down of unabated coal power and phase out of inefficient fossil fuel subsidies". This is a repeat of the Cop 26 text and represents no increase in ambition on the topic.

Tough sell

Saudia Arabia was one of several countries that pushed against the use of language targeting fossil fuels in the final text, delegates said. "The convention needs to address emissions and not the origin of the emissions", a member of the Saudi delegation, speaking on behalf of the 22 countries in the Arab League, said on 20 November.

The inclusion of broader language on fossil fuels was destined to be tricky in Egypt. The country's oil minister Tarek el-Molla said last month that natural gas will continue to play a key role in the future energy mix, calling it "the cleanest hydrocarbon fuel" at a meeting of the Gas Exporting Countries Forum.

It could be an even tougher sell in the UAE, which will host Cop 28 next year and which holds some of the largest spare reserves of the Opec+ coalition. The country's president Mohammed bin Zayed al-Nahyan, speaking at the opening of Cop 27, said that the UAE will continue to supply oil and gas "for as long as the world needs it", stressing the country's role as a responsible supplier.

The global energy crisis was a clear undercurrent at Cop, largely framed in energy security terms. The final Cop 27 text referenced the "unprecedented global energy crisis" and the "urgency to rapidly transform energy systems to be more secure, reliable, and resilient, including by accelerating clean and just transitions to renewable energy during this critical decade of action". It also said that the "increasingly complex and challenging global geopolitical situation… should not be used as a pretext for backtracking, backsliding or deprioritising climate action".

Energy security pressures

But the energy crisis weakened developed countries' hands this year, as they sought to replace Russian fossil fuel supplies. Many developing countries concentrated on this, setting out their arguments for producing oil and gas, and noting European "hypocrisy" on fossil fuel use.

Germany, seeking to cut its dependency on Russian gas, has signalled its interest in working with Senegal to develop its gas resources. Timmermans, speaking at a Cop side event on 16 November, told economic advisor to the Namibian government James Mnyupe: "I don't want to prevent you from using your fossil fuels, and especially natural gas". But for imports, the EU has been clear that additional gas infrastructure must be pre-fitted so that it can carry hydrogen.

Scrutiny was directed in particular towards the EU — which has of late ramped up coal-fired power generation as it swerves from Russian gas imports — and ministers saw off criticism. The bloc is on track to reduce emissions by 57pc by 2030, from 1990 levels, Timmermans reiterated during Cop. The EU repeatedly said that the only way to bolster energy security and boost energy access in Africa was through renewables.

"Low-emission" fuels

But even the mention of enhancing a clean energy mix through renewable energy proved difficult to push through, which led to the last-minute addition of "low-emission" energy.

The elasticity of the language potentially keeps the door open for significant amounts of technology — nuclear, biomass, biofuels, carbon capture and storage (CCS), and even gas. The language is even pliable enough to keep the use of carbon offsets on the table — an option that factors heavily in corporate decarbonisation plans. UN secretary-general Antonio Guterres has cautioned against the lack of "rigour" in voluntary carbon market credits, while biomass and biofuels often attract concerns over indirect land use change and deforestation, and CCS remains an emerging technology.


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23/04/25

US wants IMF, World Bank to drop climate focus

US wants IMF, World Bank to drop climate focus

Washington, 23 April (Argus) — US president Donald Trump's administration today called on the IMF and the World Bank to focus resources away from climate action and energy transition and to make lending available to fossil fuels programs. The IMF "devotes disproportionate time and resources to work on climate change, gender, and social issues," US treasury secretary Scott Bessent said in remarks today timed to coincide with the two international lending institutions' annual meeting in Washington. "Like the IMF, the World Bank must be made fit for purpose again," he said, during an event hosted by trade group Institute of International Finance. The IMF and the World Bank in recent years have followed the preferences of their largest shareholders — the US and European countries — in incorporating the effects of climate change in their analysis and to facilitate energy transition in the emerging economies. The World Bank, together with other multilateral development banks globally, announced at the UN Cop-29 climate conference last year that they could increase climate financing to $170bn/yr by 2030, up from $125bn in 2023. "I know 'sustainability' is a popular term around here," Bessent said. "But I'm not talking about climate change or carbon footprints. I'm talking about economic and financial sustainability." Bessent urged the World Bank to "be tech neutral and prioritize affordability and energy investment," adding that "in most cases, this means investing in gas and other fossil fuel based energy production." "In other cases, this may mean investing in renewable energy coupled with systems to help manage the intermittency of wind and solar," Bessent said. The US is the largest shareholder at both the IMF and the World Bank, with a 16pc stake in both institutions. The Trump administration, which has slashed climate programs at US government institutions and withdrew the US from climate-focused international efforts, has so far refrained from interfering in the operations of the IMF and the World Bank. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Bio-bunker sales in Rotterdam down in 1Q


23/04/25
23/04/25

Bio-bunker sales in Rotterdam down in 1Q

London, 23 April (Argus) — Sales of marine biodiesel blends in Rotterdam fell for the third consecutive quarter in January-March as demand shifted east of Suez. Port data for the first quarter of 2025 show marine biodiesel blend sales declined by 12pc compared with the previous three months and by 60pc compared with the same period last year. The decline was underpinned by lower prices in Singapore. B24 dob Singapore — a blend comprising very low sulphur fuel oil (VLSFO) and used cooking oil methyl ester (Ucome) — averaged a $36/t discount against B30 advanced fatty acid methyl ester (Fame) 0 dob ARA in the first quarter, and a $129.74/t discount against B30 Ucome dob ARA. This price dynamic made Singapore an attractive bunker hub for those shipowners opting to use biodiesel blends to help their customers meet sustainability goals. It also attracted demand from shipowners bound by the FuelEU maritime regulations introduced in January this year. The regulations require a reduction in greenhouse gas (GHG) emissions from ships travelling into, out of and within EU waters, but energy consumed from blends bunkered in Singapore can be mass balanced to be fully accounted for under the scope of the rules. A pooling mechanism within the regulations also allows vessels operating on the east-west route to utilise compliance generated from marine biodiesel blends bunkered in Singapore across other ships that operate solely in Europe. While biodiesel bunker sales in Rotterdam fell, biomethanol sales at the port soared almost sixfold in January-March compared with a year earlier. The sharp rise in demand reflects the rollout of FuelEU Maritime , higher mandates in Europe for the use of renewables in transport this year and changes to regulations on the carryover of renewable fuels tickets in Germany and the Netherlands . Sales of conventional bunker fuels in Rotterdam edged up by a more modest 1pc on the quarter and by 7pc on the year. Sales of high-sulphur fuel oil (HSFO) overtook those of very low sulphur fuel oil (VLSFO), reversing the trend of the previous quarter despite the imminent addition of the Mediterranean Sea as an Emission Control Area (ECA). Ships without scrubbers that sail through ECA zones must use fuels with a maximum sulphur content of 0.1pc, such as marine gasoil (MGO) and ultra low sulphur fuiel oil (ULSFO). LNG bunker sales in Rotterdam fell by the 13pc on the quarter in January-March, reflecting a price rally at the Dutch TTF gas hub in late January and early February. The Argus northwest Europe LNG bunker price stood at a two-year high of €64.35/MWh on 6 February. LNG bunker sales were still higher than in the first quarter last year, which likely stems from the introduction of the FuelEU Maritime regulations. By Hussein Al-Khalisy, Natália Coelho, Gabriel Tassi Lara, Evelina Lungu and Cerys Edwards. Rotterdam bunker sales t Fuel 1Q25 4Q24 1Q24 q-o-q % y-o-y % VLSFO 789,218 810,831 680,782 -2.7 15.9 ULSFO 187,031 193,567 176,797 -3.4 5.8 HSFO 829,197 780,437 818,028 6.2 1.4 MGO & MDO 393,071 395,903 383,409 -0.7 2.5 Conventional total 2,198,517 2,180,738 2,059,016 0.8 7 Biofuel blends 104,037 118,201 262,634 -12 -60.4 LNG (m³) 230,129 263,068 215,247 -12.5 6.9 biomethanol 5,490 930 0 490.3 na Port of Rotterdam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tariffs will cut profits $100mn-$200mn: Baker Hughes


23/04/25
23/04/25

Tariffs will cut profits $100mn-$200mn: Baker Hughes

New York, 23 April (Argus) — Oilfield services giant Baker Hughes expects a cut in its annual profit of as much as $200mn from tariffs, if current levels applied under President Donald Trump's 90-day pause stay in place for the rest of the year. That hit to profits does not include secondary effects, such as the impact of Trump's trade wars on slower global economic growth, as well as a renewed bout of weakness in oil prices. While the company is taking steps to mitigate tariff impacts, its "strong weighting" to international markets helps reduce its overall financial exposure, according to chief executive officer Lorenzo Simonelli. Increased oil price volatility due to tariffs , as well as the return of Opec+ barrels to the market, have resulted in a softening outlook for the market. As such, Baker Hughes now expects global upstream spending will be "down by high single digits" this year. The company forecasts a low-double digit decline in North America spending by its clients, and a mid-to-high single digit drop internationally. "A sustained move lower in oil prices or worsening tariffs would introduce further downside risk to this outlook," said Simonelli. "The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels." The company has identified three areas of tariff exposure within its industrial and energy technology division, including volumes exported to China, critical equipment supplies from its facilities in Italy, and an expected modest impact from steel and aluminum tariffs as well as US-China trade activity. Mitigation efforts include exploring domestic procurement alternatives to reduce input costs and improving its global manufacturing footprint. In relation to its oilfield services and equipment segment, Baker Hughes has been working to boost domestic sourcing and is working with customers to recover some costs. Elsewhere, the repeal of an US LNG permitting moratorium under the Trump administration has resulted in higher orders. Baker Hughes has booked about $1.7bn in LNG orders in the US over the past two quarters, and several LNG customers in the Gulf Coast have signaled plans to expand capacity beyond 2030. Profit of $402mn in the first quarter was down from $455mn in the year-earlier period. Revenue held steady at about $6.4bn. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India, Saudi Arabia to establish two Indian refineries


23/04/25
23/04/25

India, Saudi Arabia to establish two Indian refineries

Mumbai, 23 April (Argus) — India and Saudi Arabia will collaborate on establishing two refineries and petrochemical projects in India, according to an Indian government release today. Indian prime minister Narendra Modi met Saudi prime minister Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 had pledged to invest $100bn in India in multiple areas including energy, petrochemicals, infrastructure, technology, fintech, digital infrastructure, telecommunications, pharmaceuticals, manufacturing and health. The government did not disclose further details, but industry sources said that one of the two refineries might be Indian state-run BPCL's planned refinery in Andhra Pradesh , which Saudi Arabia's state-controlled Saudi Aramco may join as an investor. The other one might be a refinery in Gujarat, under a partnership with Indian upstream firm ONGC and Aramco. But plans for a 1.2mn b/d refinery in Ratnagiri in collaboration with IOC and Adnoc have mostly been ruled out, because of logistical issues relating to the size of the refinery and land acquisition hurdles, among others. Saudi Arabia is the third-largest crude supplier to India, making up 15pc or 712,000 b/d of India's total imports in January-March, data from oil analytics firm Vortexa show. Saudi Arabia's share in the Indian market has declined, after Russia became India's biggest supplier following its war with Ukraine. Modi's trip to the Middle East comes close on the heels of US vice president JD Vance's visit to India on 21 April. The visit included negotiations for an India-US bilateral trade agreement and efforts towards enhancing co-operation in energy, defence, strategic technologies and other areas. JD Vance in India Vance said on 22 April at his speech in Jaipur that India will benefit from US energy exports and said the US wants to help India explore its own considerable natural resources, including its offshore natural gas reserves and critical mineral supplies. US president Donald Trump has pushed India to step up its purchases of US crude and LNG. Crude imports from the US doubled on the month to 289,000 b/d in March, of which 65,000 b/d was Canadian Cold Lake crude, according to trade analytics firm Kpler. The visits come at a time when geopolitical and trade uncertainty has risen, because of Trump's volatile tariff policies. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cyclone, outages cut Australia’s Woodside output in 1Q


23/04/25
23/04/25

Cyclone, outages cut Australia’s Woodside output in 1Q

Sydney, 23 April (Argus) — Australian independent Woodside Energy's LNG output dropped in January-March, because of Cyclone Zelia and the retirement of its North West Shelf's (NWS) 2.5mn t/yr train 2 in late 2024. Woodside's overall LNG production fell by 14pc from 231,200 b/d in October-December to 213,900 b/d in January-March (see table) . LNG production at Woodside's 14.4mn t/yr NWS project fell by 22pc on the year to near a three-year low of 71,100 b/d of oil equivalent (boe/d) in January-March, as category 5 storm Cyclone Zelia hit the WA coastline in early February. Woodside's chief officer Meg O'Neil is calling for certainty on the continuation of operations at NWS beyond 2030 , as the firm has yet to receive federal consent, after receiving state government approval late last year. The decision lies with whomever forms government following the federal election on 5 May. Woodside's 4.9mn t/yr Pluto LNG project offshore Western Australia's production dropped by 11pc on the year to 115,000 b/d in the January-March quarter, because of three unplanned outages, which caused days-long shutdowns. This comes after a previous unplanned outage in November 2024 caused by a faulty control system , which halted LNG production for seven days. The cause of the outage is under investigation and the company said it will continue to monitor the facility to minimise the risk of future unplanned outages. Woodside's 13pc interest in Wheatstone remained steady, with production up by 3pc on the year to 26,900 b/d in January-March, from 26,200 b/d in the same period a year earlier. By Grace Dudley Woodside LNG production (mn boe) NWS Pluto Wheatstone* Total Jan-Mar '25 6.4 10.4 2.4 19.2 Oct-Dec '24 7.1 11.2 2.5 20.8 Jan-Mar '24 8.2 11.8 2.4 22.3 2024 29.4 46.7 9.3 85.5 2023 32.8 45.6 10.2 88.6 y-o-y % ± -21.9 -11.3 2.8 -7.5 q-o-q % ± -10.1 -7.1 -1.5 -13.7 *Woodside controls a 13pc interest in Wheatstone LNG Source: Woodside Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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