UN climate chief wants clear finance plan for Cop 29

  • Spanish Market: Emissions
  • 02/02/24

Making the global financial system "fit for purpose" and producing a "clear plan" to fund the energy transition must be this year's goal, UN climate body UNFCCC executive secretary Simon Stiell said in Baku, Azerbaijan, as the country starts preparations to host the UN Cop 29 climate summit.

Stiell said that a new climate finance goal — moving on from the missed $100bn/yr commitment from developed countries by 2020 — must be agreed at Cop 29, and that developing countries must be confident that they will be able to rapidly access sufficient concessional support. Technical dialogues between developed and developing countries have started to set this new finance goal — the so-called NCQG — by 2025, but a lot of work remains to be done before parties shake hands on how much money should be set aside, and where it should be spent.

"Whether on slashing emissions or building climate resilience, it's already blazingly obvious that finance is the make or break factor in the world's climate fight — in quantity, quality, and innovation," Stiell said. Cop 29 host Azerbaijan has already promised to put reforming finance mechanisms at the top of the talks' agenda.

He noted that a total of $2.4 trillion per year is needed for renewable energy, adaptation, and other climate-related issues in developing countries, excluding China, according to the High-Level Expert Group on Climate Finance — a group tasked by the Cop 26 and Cop 27 presidencies to work on finance needs. The group released a report in November last year calling for an integrated climate finance framework to deliver on the Paris Agreement and boost all sources of finance — public, private, domestic and international. A five-fold increase in concessional finance is also needed by 2030, according to the group.

Stiell warned that "without far more finance, 2023's climate wins will quickly fizzle away into more empty promises", and that it must not be "quietly pilfered from aid budgets".

He also said clear progress is needed to address "the assessment of investment risk, the allocation of special drawing rights" — reserves of interest-bearing foreign currency that can provide liquidity to countries in need — but also innovative sources of financing and creative mechanisms to tackle debt burdens. Talking about multilateral development banks, he said that they should take innovative steps that would "double, if not triple" their financial capacity by 2030, especially grants and concessional finance. He highlighted their crucial role when it comes to leveraging their engagement with the private sector to double and triple the overall rate of private capital mobilisation.

He said that the Cop 28 agreement to transition away from fossil fuels would have been "unthinkable" a few years ago, and that it sent a "very strong signal about the inevitability of global decarbonisation". "But now is no time for victory laps. It's time to get on with the job," he said. "Hiding behind loopholes in decision texts, or dodging the hard work ahead through selective interpretation, would be entirely self-defeating for any government, as climate impacts hammer every country's economy and population."


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24/06/24

CPC to import Taiwan's first SAF for 2025 trial

CPC to import Taiwan's first SAF for 2025 trial

Singapore, 24 June (Argus) — Taiwan will supply its airlines with sustainable aviation fuel (SAF) for the first time in first-half 2025, as part of a pilot project to hasten carbon emissions reductions in aviation and meet its net zero goals. There are plans for state-owned refiner CPC to import and supply SAF to national airlines at Taoyuan International Airport and Taipei Songshan Airport during January-June 2025. The volumes and airlines have not been confirmed, said a company source. Taiwan's Civil Aviation Administration (CAA) also encourages Taiwanese airlines to target 5pc SAF use by 2030, given the International Civil Aviation Organisation's (ICAO) aim of achieving a 5pc cut in carbon dioxide emissions in international aviation by 2030 compared with a business as usual scenario. The CAA said it has been working with the relevant ministries, oil companies, airlines and airports to understand their needs regarding domestic supplies of SAF. It is also in the process of ensuring facility certification and implementing supporting measures in airlines and aircraft. The SAF used in trials next year must have been certified by an ICAO-authorised agency, including details such as oil pipelines, its import sources, oil storage tanks, vessels and tanker trucks transporting the oil. CPC is now settling certification work for each step of the import process. The SAF will also be certified by the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia), a global scheme to reduce international aviation emissions, which airlines can directly use it to reduce their carbon emissions. The CAA has strategies to decarbonise Taiwan's aviation sector. These are reducing fuel consumption through measures like optimising flight routes and encouraging airlines to replace old aircraft with new models. It also aims to step up energy conservation and carbon emissions reductions in airport operations and management, encourage airlines to use SAF and promote compliance with Corsia's emissions requirements. The CAA updated Taiwan's civil and general aviation regulations last year to include laws on carbon emissions reporting in compliance with Corsia. Taiwan's airlines this year reported their carbon emissions for the first time for the year 2023, which the administration is also currently reviewing. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Canadian greenwashing bill passes


20/06/24
20/06/24

Canadian greenwashing bill passes

Calgary, 20 June (Argus) — A proponent of a major carbon capture and storage (CCS) project in Canada removed most information from its website this week after a federal bill targeting "greenwashing" successfully made its way through Parliament. The Pathways Alliance, a group of six oil sands producers, removed material from its website in response to Bill C-59 after it passed its third and final reading in Canada's senate on 19 June, citing "uncertainty on how the new law will be interpreted and applied." Parts of the soon-to-be law will "create significant uncertainty for Canadian companies," according to a statement by Pathways which is the proponent of a massive C$16.5bn ($12bn) CCS project in Alberta's oil sands region. The Pathways companies proposed using the project and a host of other technologies to cut CO2 emissions by 10mn-22mn t/yr by 2030. Project details and projections are now gone from the Pathways website, social media and other public communications as the pending law will require companies to show proof when making representations about protecting, restoring or mitigating environmental, social and ecological causes or effects of climate change. Any claim "that is not based on adequate and proper substantiation in accordance with internationally recognized methodology" could result in penalties under the pending law. Offenders may face a maximum penalty of C$10mn for the first offense while subsequent offenses would be as much as C$15mn, or "triple the value of the benefit derived from the anti-competitive practice." Invite to 'resource-draining complaints' The bill does not single out oil and gas companies, but the industry includes the country's largest emitters and has long been in the cross-hairs of the liberal government. Alberta's premier Danielle Smith says the pending bill will have the unintended effect by stifling "many billions in investments in emissions technologies — the very technologies the world needs." Construction of the Pathways project is expected to begin as early as the fourth quarter 2025 with operations starting in 2029 or 2030. The main CO2 transportation pipeline will be 24-36-inches in diameter and stretch about 400km (249 miles). It will initially tap into 13 oil sands facilities from north of Fort McMurray to the Cold Lake region, where the CO2 will be stored underground. Pathways includes Canadian Natural Resources, Cenovus, Suncor, Imperial Oil, ConocoPhillips Canada and MEG Energy, which account for about 95pc of the province's roughly 3.3mn b/d of oil sands production. Some producers took down content as did industry lobby group the Canadian Association of Petroleum Producers (CAPP), which highlighted the "significant" risk the legislation creates. "Buried deep into an omnibus bill and added at a late stage of committee review, these amendments have been put forward without consultation, clarity on guidelines, or the standards that must be met to achieve compliance," said CAPP president Lisa Baiton on Thursday. This "opens the floodgates for frivolous, resource-draining complaints." By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU warns of 2030 climate ambition gap


19/06/24
19/06/24

EU warns of 2030 climate ambition gap

Brussels, 19 June (Argus) — The European Commission has warned of an ambition gap on the way to member states achieving the bloc's 2030 renewables and energy efficiency goals, although it noted "some" progress. And European industry still faces comparatively high energy prices, the commission said in its twice-yearly report on countries' economies and finances. Increasing energy efficiency and switching to less costly renewable energy is "essential" to improve the competitiveness of European industry, but most EU states lack solid and sufficiently detailed investment estimations, as well as concrete measures to attract private clean energy finance, the commission said. And countries need to strengthen their carbon sinks from the land use, land-use change and forestry sectors. For Germany, the commission noted that the transport sector has failed to reach annual sector-specific emission targets, including in 2023 , when the sector increased final energy consumption by 6.3pc compared with 2022. EU states also need to strengthen policies to phase out fossil fuel subsidies so as to align with the EU goal of becoming a climate neutral economy, the commission said. For France, the commission estimated a net budgetary cost of emergency energy support measures at 0.9pc of GDP in 2023 and a projected 0.2pc in 2024, falling to 0pc in 2025. And for Italy the commission forecast a net budgetary cost of emergency energy support measures of 1pc of GDP in 2023, reaching 0pc in 2024. For Germany, the estimations are 1.2pc of GDP going to energy support measures in 2023, 0.1pc in 2024, and 0pc in 2025. Another of the commission's key recommendations is to cut the share of Russian imports in total EU gas imports beyond the 15pc seen in 2023, even if the share historically stood at around 40pc. Further efforts are needed from "certain" countries to phase out imports of LNG from Russia, the commission said. EU states have struggled to agree a further round of sanctions against Russia, which would include restricting the reloading of Russian LNG for export outside the EU at terminals in Europe. EU foreign ministers are expected to discuss the matter at a meeting on 24 June. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australian opposition releases nuclear power plan


19/06/24
19/06/24

Australian opposition releases nuclear power plan

Sydney, 19 June (Argus) — Australia's main political opposition today laid out its nuclear energy plan. It aims to bring the first government-owned reactors on line as early as 2035-37 if it is elected next year. The Liberal-National coalition announced seven locations where small modular reactors (SMRs) or large-scale units could be installed, all in sites hosting coal-fired power facilities that have either closed or are scheduled to close, and each of them would have cooling water capacity and transmission infrastructure. A SMR could start generating electricity by 2035, while a larger plant could come on line by 2037, according to the coalition. "The Australian government will own these assets, but form partnerships with experienced nuclear companies to build and operate them," the opposition's leader Peter Dutton, spokesman for climate change and energy Ted O'Brien and National party leader David Littleproud said in a joint statement on 19 June. The opposition claims the federal Labor government's "renewables-only approach" is expensive and is "failing", while its target of reducing greenhouse gas (GHG) emissions by 43pc by 2030 has become "unachievable". The coalition earlier this month said it would not pursue the target, although it declined to set its own 2030 goal for GHG emissions cuts . Federal energy minister Chris Bowen said the coalition's plan lacked detail, costs or modelling, although the opposition has vowed to engage with local communities while site studies, including detailed technical and economic assessments, take place. The proposed sites are the Liddell and Mount Piper plants in New South Wales; the Tarong and Callide stations in Queensland; the Loy Yang facility in Victoria; the Northern Power station in South Australia; and the Muja plant in Western Australia. Nuclear power generation is prohibited in Australia under federal and state laws, and the Labor government last year ruled out legalising it because of its high costs. The Australian federal government estimates that replacing Australia's coal-fired plants with nuclear would cost A$387bn ($257bn) . The Commonwealth Scientific and Industrial Research Organisation (CSIRO) late last year said SMRs would not have "any major role" in emission cuts needed in the electricity sector for the country to reach its net zero GHG emissions target by 2050, as costs would be well above those for onshore wind and solar photovoltaic (PV). Nuclear plants would also take 15 years or more to be deployed because of lengthy periods for certification, planning and construction, CSIRO noted. CSIRO last month included large-scale nuclear costs for the first time in its annual GenCost report, saying costs would be lower than those for SMRs but still way above renewables. Estimated costs between A$136-226/MWh could be reached by 2040, compared with A$171-366/MWh for SMRs and A$144-239/MWh for coal-fired power with carbon capture and storage (CCS), but only if Australia committed to a "continuous nuclear building programme", requiring an initial investment in a higher cost unit. "If a decision to pursue nuclear in Australia were made in 2025, with political support for the required legislative changes, then the first full operation would be no sooner than 2040," CSIRO noted. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

New Zealand's carbon credit auction fails to clear


19/06/24
19/06/24

New Zealand's carbon credit auction fails to clear

Sydney, 19 June (Argus) — New Zealand's second quarterly carbon allowance auction of 2024 failed to clear today, with no bids because prices in the secondary market have been below the regulated auction price floor of NZ$64 ($39). A total of 4,075,700 New Zealand emissions units (NZUs) were left unsold, including 550,700 remaining from the previous auction in March, which sold 2,974,300 units out of the 3,525,000 offered. No company participated in the 19 June auction, which compares with 16 in the previous sale. This was the first time that no bids were received since the auctions started in 2021. All available units will be rolled over to the next auction on 4 September. The secondary market closed at NZ$49 on 18 June, the New Zealand Stock Exchange (NZX) and European Energy Exchange (EEX) — which jointly operate the country's Emissions Trading Scheme (ETS) auction — disclosed on 19 June. Prices fell below NZ$45 and neared one-year lows at the end of May, then recovered to around NZ$55 in early June before falling back again, according to data from trading platforms emsTradepoint, CommTrade and Carbon Match. Policy uncertainty and an increasing oversupply have been affecting NZU prices in recent months. New Zealand's government has until September to decide whether it will follow advice from the country's Climate Change Commission (CCC) to reduce auction volumes to address the oversupply. "If there is no announcement on CCC recommendations before the September auction then that will also likely see no sales," said NZX-listed investment fund Carbon Fund's managing director Paul Harrison. All auctions of 2023 failed, with a total of 23mn unsold units being cancelled as a result. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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