EU wants mitigation work programme on Bonn talks agenda
The EU — with significant support from developing countries — yesterday proposed that the UNFCCC Bonn climate talks agenda officially reflects the mitigation work programme, an EU official said today.
The EU proposal was supported by the alliance of small island states, least developed countries and the independent alliance of Latin America and the Caribbean, but was blocked by the Arab Group of countries, the like-minded developing countries — a bloc of low- and middle-income countries — and Brazil, South Africa, China, and India.
This has left the talks in Bonn, Germany, without an adopted agenda so far.
The EU's proposed agenda item in essence pushed to accelerate mitigation action — which an EU-led group of 80 countries argued hard for up until the final hours of the UN Cop 27 climate summit in November 2022 in Egypt. The mitigation work programme was discussed on 3-5 June before the Bonn climate conference, under the first global dialogue on the issue. "The commencement of the global dialogue and investment-focused event under the mitigation work programme presents a new opportunity to build momentum and a global cooperation to enhance pre-2030 ambitions and implementation in this critical decade," Australia said during the plenary yesterday.
The programme was established at Cop 26 in Glasgow, in 2021, to "urgently scale up mitigation ambition and implementation". Its mandate was set to include at least two annual global dialogues and "investment-focused events" to unlock finance and scale up implementation of action on mitigation. The topic decided for 2023 is that of accelerating the just energy transition.
Australia added yesterday that it looked forward to engage with parties to reflect on the dialogue under the Bonn provisional agenda item, after the EU's proposal was rejected. Although there was an agreement to move forward with discussions, a representative for China said that decisions made during any talks on items that have not been agreed would carry no legal weight.
The "high stakes issue is that if we don't see an agenda formally agreed here in Bonn, the conversations that do happen on these topics basically can't make it into Cop 28 in a formal way", campaign group Destination Zero's Catherine Abreu said today.
Another agenda addition, put forward by the G77 group of countries plus China, proposed an item on national adaptation plans, "in particular emphasising the need for provision of finance in order to deliver those plans and the doubling of adaptation finance", Abreu said. But although it asked questions, the EU did not block this, an official said.
"Even in this agenda fight we are seeing this struggle between the need to increase ambition and the need to make sure that there's adequate finance in order to deliver that ambition", Abreu said.
Climate finance, including discussions over the establishment of a loss and damage fund, agreed on at Cop 27, will be a key theme at both the Bonn talks and at Cop 28.
The Bonn talks began yesterday and run until 15 June. They mark the midpoint for Cop 28, set to take place in December in Dubai, and set the groundwork for the summit.
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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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