UAE plans net zero emissions by 2050
The UAE has become the first Middle East country to commit to decarbonisation with an initiative to reach net zero emissions by 2050.
The effort will be led by the ministry of climate change and the environment, the energy department said.
"As the world shifts to cleaner sources of energy and a decarbonised economy, the UAE net zero initiative will provide us with precision and boost our efforts to accelerate the energy transition while contributing to the fight against climate change", energy department chairman Awaidha Murshed Al Marar said.
The announcement comes ahead of the UN Cop 26 climate conference in November, and aims to align the UAE with the Paris agreement. The UAE is a large crude producer, with output at 2.79mn b/d in August according to Argus' monthly survey, and Abu Dhabi's state-owned Adnoc has plans to raise production capacity from just over 4mn b/d to 5mn b/d by the end of the decade.
Just last month, the UAE energy minister Suhail al-Mazrouei said the country will continue to invest in capacity to avoid a price crunch.
"We are already convinced that transition is happening, and more of us are supportive of that transition," he said. "But I think we need to be honest with the consumers and tell them what is going to be the cost associated with the transition."
But the emirate has also launched a number of low-carbon initiatives and projects, including the flagship 1,177MW Noor Abu Dhabi and the 2GW Al Dhafra single-site solar PV plants, and the Barakah nuclear plant. Abu Dhabi expects the emirate's electricity in 2025 to be almost 7pc from solar and 47pc from nuclear.
The energy department said today it already has a strategy in place to reduce electricity consumption by 22pc and water consumption by 32pc by 2030, which it said will avoid the emission of more than 9mn t of CO2.
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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.
Gunvor set for buying spree after windfall: CEO
Gunvor set for buying spree after windfall: CEO
London, 12 April (Argus) — Trading firm Gunvor plans to use part of a massive earnings windfall over the past two years to build out its asset base, its chief executive Torbjörn Törnqvist told Argus . "Today, we are under-invested in assets so we will change that," Törnqvist said, adding that investments would be broad based and to some extent opportunistic. "We will employ quite a lot of capital in investments." Independent commodity trading companies are sitting on unprecedented piles of cash after two years of bumper earnings arising from supply chain disruptions and market volatility. While Geneva-based Gunvor is smaller than its peers Vitol, Trafigura and Mercuria, it is still a huge company by most metrics. It reported revenues of $127bn in 2023 and a profit of $1.25bn, following a record $2.36bn in 2022. It has kept most of its earnings in house and had an equity position of almost $6.16bn by the end of 2023 — its highest ever. Törnqvist is eyeing further growth. "We will definitely be a much bigger company, that I can say," he replied when asked where he saw Gunvor in 10 years' time. "I think we will grow in tune with the [energy] transition." Trading firms are looking for ways to keep their competitive advantage, particularly given the uncertainties associated with the energy transition. One emerging trend is an appetite for infrastructure. Vitol is in the process of buying a controlling stake in Italian refiner Saras, which operates the 300,000 b/d Sarroch refinery in Sardinia. Trafigura said this week that it is in talks to buy ExxonMobil's 133,000 b/d Fos refinery on the French Mediterranean coast. Part of the rationale behind these moves is to increase optionality and take advantage of the loss of Russian products to the European market, as well the closure of large chunks of local refining capacity. Gunvor owns the landlocked 100,000 b/d Ingolstadt refinery in Germany and a 75,000 b/d refinery in Rotterdam, where it plans to shift away from fossil fuel use. "Many oil refineries have been up for sale and still are," Törnqvist said. Asked if Gunvor was looking for something similar, he said the company is interested in the "right opportunity" whether in upstream, downstream, midstream or shipping. "It all feeds into what we are doing and all supports our underlying trading," he said. But Törnqvist suspects a lot of Gunvor's growth will come from gas and power — areas where trading companies are already seeing rising profits. The company made its first investment in a power generation asset late in 2023, when it agreed to buy BP's 75pc stake in the 785MW Bahia de Bizkaia combined-cycle gas turbine plant in Bilbao, Spain. It has signed a slew of LNG offtake agreements in the past year and continues to grow its LNG tanker fleet . "We're building logistical capabilities in LNG," Törnqvist said. "Oil is here to stay" Törnqvist said Gunvor is well placed to navigate the energy transition, and is stepping up investments in renewables and biofuels and expanding into carbon and metals trading. "There will be disruptions, there will be different paths to the transition in different parts of the world which go at different paces and have different priorities and ways to deal with it," he said. "This will create opportunities." But Törnqvist is clear that oil and gas will remain an integral part of Gunvor's business. "We feel that oil is here to stay," he said. "And it will grow for several years." By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Strong climate plans will boost economies: UN’s Stiell
Strong climate plans will boost economies: UN’s Stiell
London, 11 April (Argus) — New, robust national climate plans will act as an "economic springboard" for countries, Simon Stiell — executive secretary of UN climate body the UNFCCC — said this week. "We are at the start of a race which will determine the biggest winners in a new clean energy economy," Stiell said at London's Chatham House on 10 April. "The next generation of national climate plans must be investment plans for sustainable and strong economies", he added. Cutting emissions and pollution from fossil fuel combustion "will mean better health and huge savings for governments and households", Stiell said. The 198 parties to the UNFCCC — comprised of 197 states and the EU — must submit new national climate plans, known as nationally determined contributions (NDCs), in 2025. The plans must be in line with the 1.5°C temperature limit set by the Paris climate agreement and should "clearly articulate how finance is unlocked", Stiell said. He called for them to be submitted early next year. But many countries will only be able to implement NDCs if there is "a quantum leap in climate finance this year", he warned. Finance will be "absolutely critical", at the UN Cop 29 climate summit, set for November in Baku, Azerbaijan, Stiell said. Countries must decide on a new climate finance goal at Cop 29 — the next step from the $100bn/yr that developed countries agreed to deliver to developing nations in 2020-25. That deal should include more concessional finance, "new sources of international climate finance" and debt relief for the poorest and most vulnerable countries, Stiell said. He also called for the reform of multilateral development banks (MDBs) and "a financial system fit for the twenty-first century". The World Bank and IMF should build on some steps already taken — such as the former's work on climate resilient debt clauses — and take more action, including revising capital requirements, Stiell said. The institutions meet next week in Washington. The G7 and G20 groups of countries must also lead the charge, Stiell said. "G20 leadership must be at the core of the solution", particularly as the group's emissions equal around 80pc of global emissions, he added. Geopolitical challenges "cannot be an excuse for timidity, amidst this worsening crisis… Sidelining climate isn't a solution to a crisis that will decimate every G20 economy", he said. The Cop climate summit is typically the UN's biggest event each year, but Stiell said that he would like to see "future Cops reduce in size". He is in discussions with a "very very active" Brazilian Cop 30 presidency around reducing the size of that Cop, set for November 2025 in Belem. He also noted agenda alignment across the three UN Cops this year — other than the climate-focussed Cop 29 in Baku, a biodiversity Cop and a desertification Cop will take place late this year, in Colombia and Saudi Arabia, respectively. Finance is "central to addressing all three", he said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Switzerland commits $148mn to Green Climate Fund
Switzerland commits $148mn to Green Climate Fund
Edinburgh, 10 April (Argus) — Switzerland will contribute 135mn Swiss francs ($148mn) over the next four years to the UN's Green Climate Fund (GCF), according to the country's Federal Council. The Federal Council said the commitment was for the fund's second replenishment period — 2024-27. Switzerland contributed $100mn to the fund's first capitalisation in 2015-17 and $150mn in 2020-23. The GCF finances projects in developing and emerging countries with a focus on mitigation and adaptation. Mitigation refers to efforts to reduce greenhouse gas emissions causing global warming, while adaptation refers to adjustments to avoid global warming impacts. The GCF is the world's largest climate fund. As of December 2023, 31 countries had pledged support totalling $12.8bn over the next four years. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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