Cop 29 presidency sets out initiatives, summit agenda

Spanish Market: Emissions, Hydrogen, Natural gas
17/09/24

The president-designate of the UN Cop 29 climate summit, Azerbaijan's Mukhtar Babayev, has set out 14 initiatives and a detailed agenda for the conference, including a new focus on methane reduction and tackling barriers to a "clean hydrogen" market.

There is an "urgent need to harmonise international frameworks, regulations and standards to create viable business models" for hydrogen, Babayev said.

The Cop 29 presidency will build on the declaration of intent on mutual recognition of hydrogen certification schemes, made at Cop 28 last year, it said. It plans to launch a framework to set priorities ahead of Cop 30, scheduled for November 2025 in Brazil.

The Cop 29 presidency also aims to tackle "the growing problem of methane from organic waste", it said. Methane — a potent greenhouse gas (GHG) — is often a focus at Cop summits, although typically with an eye to the largest emitters, the agriculture and fossil fuel industries.

Babayev has called for governments to commit to targets to cut methane from organic waste in their climate plans, as well as for more signatories of the Global Methane Pledge. The pledge, launched in 2021 at Cop 26, asks signatories to cut methane emissions by at least 30pc by 2030, from 2020 levels.

The Cop 29 presidency has also developed a two-pronged pledge, which seeks to scale up global installed energy storage capacity to 1.5TW by 2030 and add or refurbish more than 80mn km of power grid by 2040. It has developed a "green energy zones and corridors" pledge as well, to maximise sustainable energy generation and ensure "cost-effective transmission over large distances and across borders".

Babayev provided further details of a planned climate fund, which will be capitalised by fossil fuel producing countries and companies.

"We believe that countries rich in natural resources should be at the forefront of those addressing climate change," Babayev said, noting that the direction came from Azerbaijan's president Ilham Aliyev.

The fund will be a public-private partnership, with "concessional and grant-based support to rapidly address the consequences of natural disasters" in developing countries, Babayev said. It will "provide offtake agreement guarantees for small and medium-sized renewable energy producers and first-loss capital for green industrial projects", with a focus on food and agriculture, he said.

Cop 29 is set to take place in Baku, Azerbaijan on 11-22 November. It will be the first Cop hosted in the Caucasus region, Babayev noted. He flagged the "extreme heat [and] water scarcity" the region faces, but also pointed to its wind and solar power potential.

Topics of other programmes set out today include water, climate action in tourism and a peace initiative which emphasised the "interplay between conflict and climate change".

By Georgia Gratton

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31/01/25

Trump tariffs on Canada, Mexico to include oil: Update

Updates with comments from Trump, plan for 10pc crude tariff. Washington, 31 January (Argus) — President Donald Trump said late Friday he will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico on 1 February, with crude imports likely to be taxed at a lower 10pc rate. Trump separately plans to impose tariffs on imports from China on 1 February. Asked if his Canada tariffs would include crude imports, Trump said, "I'm probably going to reduce the tariff a little bit on that," he told reporters at the White House. "We think we're going to bring it down to 10pc." Trump, who previously tied tariffs on imports from Canada, Mexico and China to their alleged inability to stem the flow of drugs and migrants into the US, today insisted that the tariffs he plans to impose on Saturday in fact have a strictly economic rationale and are non-negotiable. The tariffs expected on Saturday "are not a negotiating tool", Trump said. "No, it's pure economic … we have big deficits with all three of them." Trump, in a wide ranging gaggle with reporters, separately mentioned that he would impose tariffs on imported chips and oil and natural gas. "That'll happen fairly soon, I think around 18 February," he said. It was not clear from his remarks if he meant that all oil and gas imports into the US would be taxed, or if he referred to supply only from Canada and Mexico. Trump said he would also raise tariffs on imported steel, aluminium and eventually copper as well. Trump brushed away criticism of potential negative impacts from his tariffs. "You will see the power of the tariff," Trump said. "The tariff is good, and nobody can compete with us, because we have by far the biggest piggy bank." The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Mexican president Claudia Sheinbaum also said her country has prepared responses to US tariffs . Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. Gas, petchems, steel and ags threatened The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. North American steel trading costs could rise by as much at $5.3bn across the three nations, since Mexico and Canada are expected to issue reciprocal tariffs against the US, as it did when Trump issued tariffs in his first term. The tariffs could also disrupt US corn and soybean sales , since China and Mexico account for 48pc of US corn exports and 61pc of US soybean exports since 2019, according to US Department of Agriculture (USDA) data. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada’s tariff response will be ‘forceful’: Trudeau

31/01/25

Canada’s tariff response will be ‘forceful’: Trudeau

Calgary, 31 January (Argus) — Canadian prime minister Justin Trudeau is planning an immediate retaliation should US president Donald Trump impose a 25pc tariff on imports tomorrow, 1 February. "If the president does choose to implement any tariffs against Canada, we are ready with a response," said Trudeau at a meeting of the Council on Canada-US Relations in Toronto. "A purposeful, forceful, but reasonable, immediate response." "It's not what we want, but if he moves forward, we will also act," he said. Trump has accused Canada and Mexico of facilitating trafficking of fentanyl and illegal migration and has threatened tariffs to persuade the two countries to tighten borders they share with the US. "Our border is safe and secure," said Trudeau. "We're committed to keeping it that way by addressing current challenges and strengthening our capacity." Mexican president Claudia Sheinbaum said this week Mexico is also ready to respond to US tariffs. "We will always defend respect for our sovereignty and a dialogue as equals, but without subordination," she said. Canada in mid-December said it would spend C$1.3bn ($900bn) on border security measures over six years, which Trudeau reiterated Friday while highlighting recent progress. The 8,891-kilometre (5,525-miles) US-Canada border is the longest in the world. Trump has also railed against the US' trade deficit with Canada, which is on track to settle at about C$65bn in 2024 , according to TD Bank. The bank notes the deficit is largely a result of America's thirst for energy and should not be confused with a "subsidy". Canada has increased deliveries of crude to the US beyond 4mn b/d and supplied 8.36 Bcf/d (86.35bn m³/yr) of natural gas in January-October, according to the US Energy Information Administration (EIA). US refiners that process Canadian crude would not easily find alternative supplies, according to the American Fuel and Petrochemical Manufacturers (AFPM). "We won't relent until tariffs are removed, and of course, everything is on the table," Trudeau said of Canada's potential retaliation, a message that has drawn concern from the premier of oil-rich Alberta who wants the unfettered flow of energy. All told, the two highly-integrated countries exchange about C$3.6bn of goods and services each day, only slightly less than daily US-Mexico trade, TD Bank said last week. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump ‘right to reverse’ LNG pause: ExxonMobil

31/01/25

Trump ‘right to reverse’ LNG pause: ExxonMobil

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ExxonMobil sees 45V as 'critical' for H2 market: Update

31/01/25

ExxonMobil sees 45V as 'critical' for H2 market: Update

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Trump tariffs to hit Canada, Mexico, China on 1 Feb

31/01/25

Trump tariffs to hit Canada, Mexico, China on 1 Feb

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