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Cop: ‘Points of convergence’ on mitigation

  • Spanish Market: Emissions
  • 08/12/23

The ministers tasked with facilitating political negotiations on climate mitigation at the Cop 28 UN climate conference in Dubai have identified some points of convergence between parties, but disagreement persists as the summit enters its second week.

Consultations on mitigation held ahead of the conference — both virtually and at the pre-Cop ministerial summit in Abu Dhabi in October — showed "broad agreement" on the need for enhanced ambition and better implementation, said Norway's climate and environment minister Espen Barth-Eide, who has been appointed alongside Singapore's sustainability and environment minister Grace Fu to facilitate ministerial negotiations on the topic.

But there is not yet agreement on how to approach "many issues", such as building on the Glasgow Climate Pact agreed at Cop 26 in 2021, responding to UN Intergovernmental Panel on Climate Change's (IPCC) sixth synthesis report, published earlier this year, or accelerating and deepening global mitigation efforts, Barth-Eide told Cop 28 delegates today.

Talks need to focus on "what we actually do", he said, particularly on the energy transition, non-CO2 gases such as methane, and forests, oceans and carbon sinks.

"There might be some room for CCS [carbon capture and storage], but the main job is done by nature," he emphasised.

Norway's position broadly aligns with the EU's stance on CCS. "CCS is part of the solutions space… [but] we cannot CCS ourselves out of the space", EU climate commissioner Wopke Hoekstra said today. CCS technology is "a minor part of the solutions space", he added, while member of European Parliament Peter Liese pointed to the lack of definition around abatement.

"We will have honest discussions with the parties to identify new mitigation opportunities, identify challenges, try to reduce them, look for possible measures and best practices and also see how we can meet the long-term Paris agreement goal," Barth-Eide said.

The annual high-level ministerial roundtable on pre-2030 ambition, scheduled to take place at Cop tomorrow, is likely to facilitate exchange on the subject, Fu added.

Other ministerial pairings include Chile's environment minister Maisa Rojas and Australia's assistant climate minister Jennifer McAllister to focus on adaptation, Canada's environment and climate change minister Steven Guilbeault and Egypt's environment minister Yasmin Fouad on finance, and Denmark's global climate policy minister Dan Jorgensen and South Africa's environment, forestry and fisheries minister Barbara Creecy on the global stocktake, a five-yearly undertaking to measure progress towards the Paris climate agreement.

UN climate body secretary general Simon Stiell today urged ministers to start with the highest ambition outcomes, which he said must "stay front and centre" of negotiations. "Compromises will be essential. But not on ambition," Stiell said.


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16/01/25

EU 'unlikely' to submit new climate plan to UN in time

EU 'unlikely' to submit new climate plan to UN in time

Brussels, 16 January (Argus) — The European Commission is "unlikely" to present the EU's new climate plan including greenhouse gas (GHG) emission reduction targets for 2035 to the UN by the February deadline, according to EU climate commissioner Wopke Hoekstra. "We need a target for 2035 when we walk into [the UN Cop 30 climate summit in] Belem," said Hoekstra. "Whether we have that in February, I think, is unlikely," he said. Countries party to the UN Framework Convention on Climate Change (UNFCCC) must submit their nationally determined contributions (NDCs) — emissions-cut targets — for 2035 by February. Hoekstra added that the commission will have an "ambitious" 2040 target from which it will derive the bloc's 2035 target. He noted an obligation towards parliament to come up with the 2040 target this calendar year. In December, Hoekstra had told EU environment ministers that the legal proposal for 2040 GHG cuts will come " sooner rather than later ". The commission should in February put out new policy documents on clean industry, affordable energy, and roadmap towards ending Russian energy imports as well as on agriculture. Hoekstra indicated that the commission is looking once again at the carbon border adjustment mechanism that is an "important add-on to prevent carbon leakage" from the bloc's emissions trading system (ETS). "We are indeed going to look into both exports but also simplification," Hoekstra said. The commissioner said that he still "needs to see" whether decarbonisation contracts will also be proposed as part of the forthcoming clean industrial deal, now due on 26 February. Shaky start The EU, alongside Canada, Mexico, Norway and Switzerland, has committed to submitting an NDC with " steep emission cuts " that are consistent with the global 1.5°C temperature increase limit sought by the Paris Agreement. Hoekstra reiterated today the need for "reciprocity" on climate goals from other nations. Cop 28 host the UAE and Cop 30 host Brazil have already submitted their new NDCs, and the UK set a target to cut all greenhouse gas (GHG) emissions by at least 81pc by 2035, from a 1990 baseline during the Cop 29 summit last year. But, although Canada was planning to submit its new plan by February, the planned resignation of prime minister Justin Trudeau and a new election due this year could put the country's climate ambitions at risk. Canada in December set a new 2035 climate goal, aiming to reduce its greenhouse gas emissions by 45-50pc by 2035, from a 2005 baseline. Similarly, US president Joe Biden's administration has at the end of last year set a new GHG emissions reduction target for the world's second largest emitter — pursuing economy-wide emission cuts by 61-66pc below 2005 levels by 2035. The country has already submitted a new NDC, but the move is unlikely to hold much weight with president-elect Donald Trump taking office later this month. Some countries including Indonesia and Brunei have highlighted challenges in providing new targets, such as the lack of common models between sectors, financing and economic growth. Colombia indicated that it will submit its NDC by June next year at the country seeks to address the "divisive issue" of fossil fuels, on which its economy is dependent. By Dafydd ab Iago and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump energy nominee vows to expand US LNG


15/01/25
15/01/25

Trump energy nominee vows to expand US LNG

Washington, 15 January (Argus) — President-elect Donald Trump's nominee to lead the US Department of Energy (DOE), oil executive Chris Wright, said today he supports expanded LNG production and an "evolution" in energy systems to address climate change. Wright, the chief executive of oil services company Liberty Energy, told lawmakers he would focus on trying to "unleash American energy at home and abroad" and to restore "energy dominance" if confirmed to the position.Wright also said that DOE should support innovation and technology, and revisit federal policies that make it "too easy to stop projects" and very hard to begin them. "Previous administrations have viewed energy as a liability instead of the immense national asset that it is," Wright said at a confirmation hearing with the Senate Energy and Natural Resources Committee. "To compete globally, we must expand energy production, including commercial nuclear and liquified natural gas, and cut the cost of energy for Americans." Trump, after being sworn in on 20 January, is expected to quickly order DOE to lift a pause on licensing of new LNG export facilities that President Joe Biden imposed nearly a year ago. DOE is also responsible for managing the US Strategic Petroleum Reserve, which currently holds 394mn bl of crude, and oversees a vast portfolio of loans and grants for clean energy projects, including an $8bn program intended to support the development of new hubs for clean hydrogen. Wright did not offer in-depth comments on the timeline for issuing licenses to proposed LNG export terminals, which Trump has pledged to approve on his "very first day back." But Wright committed he would consider how licensing more LNG export capacity could affect US natural gas prices, which could increase by 31pc by 2050 if LNG exports are "unconstrained", a study from President Joe Biden's administration found . Democratic lawmakers at the hearing raised concerns about Wright's past comments that downplayed the risks of climate change. US senator Alex Padilla (D-California), whose state is dealing with tens of billions of dollars in damage from ongoing wildfires, cited a LinkedIn post in 2023 in which Wright said alarm about wildfires raging in Canada at the time were simply "hype to justify impoverishment from bad government policies." Wright, who wrote in a separate LinkedIn post that there is no "climate crisis" , said he stood by his 2023 comments on the wildfires. Wright said climate change is a "real and global phenomenon", and that DOE has a role to play by supporting progress in technologies such as nuclear, solar, geothermal and battery storage. "It is a real issue," Write said. "It's a challenging issue, and the solution to climate change is to evolve our energy system." Wright is widely expected to win confirmation in the Senate, where Republicans will have a 53-47 majority once Ohio governor Mike DeWine (R) fills the seat recently vacated by US vice president-elect JD Vance. Trump has said Wright will also serve on his newly created Council of National Energy, which will oversee policies across the federal government related to energy. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Make carbon pricing global to reach net zero: WEF


15/01/25
15/01/25

Make carbon pricing global to reach net zero: WEF

London, 15 January (Argus) — Variations in the design of carbon pricing measures across countries make it more difficult to reach net zero emissions by 2050, according to the World Economic Forum (WEF), which has called for greater alignment and linkage. Carbon pricing is vital to tackle climate change, but currently only covers 24pc of global emissions, WEF said. The number of unilateral carbon pricing measures is also increasing, WEF noted, pointing to planned EU and UK carbon border adjustment mechanisms (CBAMs) and the US' proposed Clean Competition Act. While these offer tailored approaches to supporting the energy transition, they could also lead to trade disparities requiring adjustments to the mechanisms, and have limited global impact, WEF warned. Multilateral carbon pricing systems reduce the risk of carbon leakage and can promote fairer trade, WEF said. But they require consensus, which can involve complex negotiations and be complicated by differing economic priorities. WEF suggests a phased approach to setting up a global pricing mechanism. The first step would be to establish minimum standards for pricing and reporting, with price adjustments based on development needs. The second step would be to connect regional markets — including the EU emissions trading system, California's cap-and-trade system, the US' northeast regional greenhouse gas initiative and China's national carbon market — to create "interoperable" pricing systems, WEF said. CBAMs should be adjusted to help trade-exposed industries reduce their carbon-intensity and limit adverse effects for developing countries. And revenues from the measures could be redistributed to "vulnerable" countries, WEF said. And wealthier nations, alongside a carbon pricing "club", should help fund carbon pricing adoption and enter into technology-sharing agreements with developing countries, WEF said. Linking compliance and voluntary carbon markets and those set up under Article 6 of the Paris climate agreement can spur private-sector involvement, WEF added. But regulation and transparency are needed to ensure challenges to integration — such as price volatility and questions over carbon credit credibility — are addressed, it said. By Navneet Vyasan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New York to propose GHG market rules in 'coming months’


14/01/25
14/01/25

New York to propose GHG market rules in 'coming months’

Houston, 14 January (Argus) — Draft rules for New York's carbon market will be ready in the "coming months," governor Kathy Hochul (D) said today. Regulators from the Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) "will take steps forward on" establishing a cap-and-invest program and propose new emissions reporting requirements for sources while also creating "a robust investment planning process," Hochul said during her state of the state message. But the governor did not provide a timeline for the process beyond saying the agency's work do this work "over the coming months." Hochul's remarks come after regulators in September delayed plans to begin implementing New York's cap-and-invest program (NYCI) to 2026. At the time, DEC deputy commissioner Jon Binder said that draft regulations would be released "in the next few months." DEC, NYSERDA and Hochul's office each did not respond to requests for comment. Some environmental groups applauded Hochul's remarks, while also expressing concern about the state's next steps. Evergreen Action noted that the timeline for NYCI "appears uncertain" and called on lawmakers to "commit to this program in the 2025 budget." "For New York's economy, environment and legacy, we hope the governor commits to finalizing a cap-and-invest program this year," the group said. State law from 2019 requires New York to achieve a 40pc reduction in greenhouse gas (GHG) emissions from 1990 levels by 2030 and an 85pc reduction by 2050. A state advisory group in 2022 issued a scoping plan that recommended the creation of an economy-wide carbon market to help the state reach those goals. By Ida Balakrishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

California GHG rulemaking hits speedbump


14/01/25
14/01/25

California GHG rulemaking hits speedbump

Houston, 14 January (Argus) — The California Air Resources Board (CARB) cap-and-trade program rulemaking is likely to weather further delays, according to one of the agency's top officials. The agency's "immediate" responsibility is to work with covered entities impacted by the ongoing Los Angeles County wildfires across its programs, according to deputy executive officer Rajinder Sahota. This means that the rulemaking is not "imminent or in the next few weeks." In addition, the agency needs to move carefully given the federal administration change , along with the negative response to proposed updates to the state's Low Carbon Fuel Standard received last year. CARB continues to evaluate program changes, with a focus on affordability, ambition and compliance costs. "We want to take time to ensure we get out foundational facts about the program especially as the legislature takes up the post-2030 role of the program," Sahota said. The cap-and-trade rulemaking has been marked by a series of delays, as regulators initially in 2023 estimated it would finish last year. In December , CARB said it would delay the publication of draft amendments until early 2025. CARB began to prepare for the rulemaking nearly two years ago, floating the idea of moving the cap-and-trade program to a more-stringent 2030 greenhouse gas (GHG) reduction target of a 48pc, compared with 1990 levels, rather than the current 40pc mandate. The agency's 2022 Scoping Plan prompted the idea as it showed a need for increased program ambition for California to remain on track for its target of net-zero by 2045. In line with this increased ambition, CARB will need to remove at least 180mn metric tonnes (t) of allowances from the 2026-2030 auction and allocation annual budgets to start with, and up to 265mn t in total from the program budgets from 2026-2045, agency staff have said. Quebec, California's partner in the Western Climate Initiative (WCI) carbon market, previously delayed publishing its draft package from the originally planned September 2024 to the first quarter of this year, with implementation expected in the spring. While the regulation was nearly complete in late September, the Quebec Environmental Ministry decided to postpone, citing the need to wait for California. If California delays its work through the first quarter of the year, this will likely require Quebec to also push back its rulemaking. This will also shorten the runway for both market partners to formally implement changes by 2026. The news has punctured the bullish sentiment for market participants on a timely end to the rulemaking. California carbon allowances for December delivery initially traded as high as $35.25/t on the Intercontinental Exchange (ICE) ahead of the announcement. The contract traded as low as $33.01/t after midday on Nodal Exchange following the news, before sliding lower in later trade. Outside of the WCI, Washington is also likely to see a slowdown in its carbon market ambitions. The state Department of Ecology is conducting its own rulemaking to align Washington's "cap-and-invest" program to facilitate linkage with the larger WCI market. But it will require California and Quebec to finalize their expected changes. California has indicated over last year that it does not intend to focus fully on linkage until its current rulemaking is complete. California's and Quebec's cap-and-trade programs cover major sources of the state's GHG emissions, including power plants and transportation fuels. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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