Cop 27: Nigeria seeks G7 support for energy transition

  • : Electricity, Emissions, Natural gas
  • 22/11/15

Nigeria environment minister Mohammed Abdullahi has called on the G7 countries to include Nigeria in a climate partnership list for the co-creation of a just energy transition partnership (JETP), as the country seeks to financing to hit its net zero by 2060 target.

Speaking at the Cop 27 UN climate conference in Sharm el-Sheikh today, Abdullahi reiterated that to meet its emissions reductions targets, Nigeria needed "significant resources" to implement its energy transition plan (ETP) unveiled last year.

The plan intends to reduce greenhouse gas (GHG) emissions from the power, cooking, oil and gas as well as transport and industry sectors, accounting for 65pc of the country's total emissions.

According to its own calculations, Nigeria would need an additional total of $410bn, or around $10bn in annual spending, in order to meet the 2060 net zero target, funds the country seeks to secure at the Cop 27 summit.

Most of the funds will be needed to transform the power sector, driven by costs to reach about 220GW of solar, biomass and hydro generation capacity, 90GW of storage capacity and 34GW of hydrogen systems.

At the same time, the country's ETP puts an important transitional role on gas use in domestic sectors such as power generation, grid stabilisation for the integration of renewables and for cooking purposes. The plan predicts gas production expansion costs between 2020-2030s to reach around $4bn, when it also expects domestic demand to rise by 25pc above 2019 levels.

Domestic demand will decline after 2030 but further estimates show that export demand will remain significant until 2050, which has made the "commercialisation" of gas a priority for the government, according to its ETP.

Nigeria's call for a G7 partnership comes after Indonesia agreed a JETP plan for $20bn with the US and Japan today, to help the country bring forward its carbon reduction targets by largely phasing out its dependence on coal.

South Africa signed a similar agreement with Germany and France last year to help fund its energy transition and phase out coal-fired power generation, although the country warned this week that most of the funding is made of loans.


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24/05/22

UK general election set for 4 July

UK general election set for 4 July

London, 22 May (Argus) — A general election will take place in the UK on 4 July, prime minister Rishi Sunak said today. The announcement coincides with official data showing that UK inflation has fallen to its lowest level in nearly three years. Labour, the country's main opposition party led by Keir Starmer, has held a substantial lead in polls in recent months and performed well in local elections earlier this month. It won nearly 200 seats on local councils, as well as several regional mayoral contests, while the ruling Conservative Party lost almost 500 council seats. The Conservatives have been in power since 2010 and have fielded five prime ministers during that time. The two main parties are likely to release more detailed manifestos once the election campaign begins, but their current respective energy policies have many similarities. Both back a windfall tax on oil and gas producers and support nuclear power. They both also support offshore wind and solar power, although Labour has incrementally more ambitious targets for those renewables and has plans for more onshore wind. Labour also wants a zero-carbon power grid by 2030 , while the Conservatives are aiming for that in 2035. The Conservatives have rolled back some climate policy since Sunak became prime minister, while Labour in February backed down on its pledge to spend £28bn/yr ($35.6bn/yr) on the country's energy transition, if it wins the election. For a general election to take place in the UK, the prime minister must request permission from the British monarch — King Charles III — who then dissolves parliament. A general election must take place at least once every five years in the UK, although a prime minister can call one at any point. The UK's last general election was held on 12 December 2019 and Boris Johnson was elected prime minister. There have since then been two prime ministers — Liz Truss in September-October 2022 — and Sunak. Truss was selected by Conservative Party members and Sunak became prime minister in October 2022 after the only other candidate withdrew from the leadership contest. The Conservatives hold 344 seats out of 650 in the House of Commons, the UK's lower house of parliament. But 105 members of parliament have said that they will not run at the next election, 66 of whom are Conservatives. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Mol adds to LNG fleet for Jera


24/05/22
24/05/22

Japan’s Mol adds to LNG fleet for Jera

Osaka, 22 May (Argus) — Japanese shipping firm Mitsui OSK Lines (Mol) is to launch a new LNG carrier in 2026, the seventh vessel to be supplied under an unspecified time charter agreement with the country's largest power producer by capacity Jera. The 174,000m³ membrane-type vessel is being built by South Korean shipbuilder Samsung Heavy Industries at its Geoje shipyard. It will be installed with a dual-fuel engine that can run on low-sulphur fuel oil or boil-off gas stored in the ship's cargo tank, Mol said. LNG is dominant in Jera's power portfolio, with its gas-fired output accounting for 75pc of its power generation in the April 2023-March 2024 fiscal year. The company consumed around 23mn t of LNG during 2023-24, which accounted for 35pc of Japan's LNG imports of 64.9mn t. Jera is planning to maintain its LNG handling volumes at no less than 35mn t/yr until 2035-36 , so to ensure power security in Japan through more flexible operations. It is also looking to further promote LNG along with renewable electricity in Asian countries, while helping to reduce their dependence on coal- and oil-fired power generation. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Shell to develop new gas wells for Australia’s QGC


24/05/22
24/05/22

Shell to develop new gas wells for Australia’s QGC

Perth, 22 May (Argus) — Shell has begun work on new coal-bed methane wells for its Queensland-based gas division QGC, which services domestic customers and exports through its two-train 8.5mn t/yr Queensland-Curtis LNG (QCLNG) project. Around 138 new wells with an estimated 15-year lifespan will be drilled and connected in the state's Western Downs region, across existing tenements in the onshore Surat basin in the central, southern and northern development areas. Preparations for drilling will start during October-December with construction planned to be under way for January-March 2025 and take approximately two years. Federal and state environmental approvals are already in place for the infill and backfill development, a Shell spokeswoman said on 22 May. Shell reported output rose from a year earlier and the previous quarter for its LNG sector in January-March with 7.58mn t of LNG produced in the first quarter, of which 3.55mn t or 47pc was from its Oceania division. This includes QCLNG and the 3.6mn t/yr Prelude floating LNG offshore northwest Australia, which resumed exports in late 2023 following a major turnaround in the second half of 2023. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Q&A: Over 100 entities trading Australia's ACCUs


24/05/22
24/05/22

Q&A: Over 100 entities trading Australia's ACCUs

Cairns, 22 May (Argus) — The Australian Carbon Credit Unit (ACCU) market has developed significantly in recent years, with demand moving away from the federal government to the private sector. Argus spoke with the country's Clean Energy Regulator's (CER) chair and chief executive David Parker and executive general manager Carl Binning about that transformation. Edited highlights follow: Demand for ACCUs had been typically driven by the federal government through carbon abatement contracts awarded in auctions but the market is becoming more diverse with rising volumes cancelled for voluntary purposes and an expected increase in surrenders under the safeguard mechanism . What's the approximate number of participants actively trading ACCUs now? Parker: There's more than 100 entities trading actively in the market. That's both on the demand side and the supply side. Some of them are in both. How does that compare with a few years ago? Binning: It's growing year on year. Parker: Around 20-30pc growth in successive years. What's the role of the government in purchasing ACCUs now? Parker: We no longer do the purchasing side [through auctions]. The government now has that function through the Department [of Climate Change, Energy, the Environment and Water] but they can do other things. Binning: The government transferred the ERF [Emissions Reduction Fund] funding to the Powering the Regions Fund and that fund has a mandate to purchase ACCUs. But at this time there is no government direction to purchase . The CER still has a purchasing function to build up volumes under its cost containment reserve, which can only be accessed by safeguard facilities that exceed their annual emissions baselines and are unable to buy ACCUs from other sources. In that case, they would need to pay more than A$75 during the next fiscal year . This is more than double the current prices for ACCUs but how would that cost containment reserve work exactly if spot prices reached that triggering level? For instance, would a single company be able to buy all or most volumes if it bid first? Parker: Good question, we don't know the answer. Binning: The government is currently consulting on the design of the cost containment measure. One of CER's main works is the implementation of a new registry replacing the Australian National Registry of Emissions Units (ANREU). Is this going to solve some of the transparency limitations of the current registry? Parker: I'm very much in favour of transparency. We'll do as much as we possibly can in terms of putting out data, subject to the legal constraints. Binning: The Chubb review has been implemented in three stages. That created the capacity to make a rule under the legislation which enables more data to be published. And the government has accepted the recommendation, so we would expect some time over the next 12 to 18 months for some rules to be made to make that data available. And as David said, as a regulator, we welcome the shift towards greater transparency. What sort of data should we expect to see publicly available for the first time? Binning: I think some project level data. One of the challenges with the integrity debate is that we have data that is not accessible to the marketplace. So where there are on-ground checks being done, for example, making some of those checks more transparent and visible to the marketplace will give it confidence. Should we expect to have access to individual ACCU transfers between accounts, as we currently have for large-scale generation certificates in CER's REC registry or even ACCU holdings of individual account holders? Parker: We hope so. We do publish some information on that but it's aggregated information. Binning: One of the challenges with the ANREU registry is distinguishing between intermediaries in the marketplace that are holding ACCUs to further sell them versus entities that may be holding ACCUs to pass on to safeguard facilities for compliance purposes. Safeguard entities are large corporations, so they often have quite a significant number of related entities. Over time — and you'll see in the next quarterly market report — we're trying to get better at understanding those holdings that are held by related entities for the safeguard mechanism, so we get a stronger sense of how much of the demand has been taken up through the new safeguard mechanism. I think progressively we'll get better at that, but it's not as simple as it might be said. Is the new registry still expected to be operational in the second half of 2024, with the new carbon spot exchange coming online by the beginning of 2025 ? Parker: We hope so. We are about to put out a consultation paper on what the market wants to see in the exchange traded platform. Binning: Our consultation is about understanding the role of an exchange traded fund in complementing all the other markets that are emerging — including futures markets and secondary markets — whilst we still progress the registry, which underpins the whole thing. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

G20 seeks to ease climate funding to cities


24/05/21
24/05/21

G20 seeks to ease climate funding to cities

Sao Paulo, 21 May (Argus) — Climate funds need to make it easier for countries and especially individual cities to access resources, a G20 working group said in Brazil today. Experts, representatives of G20 member countries and financial organizations gathered in Rio de Janeiro to discuss ways to leverage financing to face extreme climate events. The two-day event was hosted by the G20 — which Brazil presides over this year — the country's finance minister, global network Finance in Common (FiCS) and the Brazilian NGO climate and society institute (iCS). Delegates agreed that climate funds — especially the green climate fund, the adaptation fund, the global environment facility fund and the special climate change fund, which will hold a combined $30bn in the next five years — need to allow better access for cities to combat climate change. That means easing bureaucracies and identifying bottlenecks, according to Ivan Oliveira, deputy secretary for sustainable development at Brazil's finance ministry. Guaranteeing funding for climate projects can take many years, Oliveira said. But "climate change requires climate funds to deliver quickly," he added. FiCS' chairman Remy Rioux — who is also the chief executive of France's development agency — pointed to the different accreditation processes for different climate funds as hindering climate financing. A single accreditation process would ease access, he added. "We will do our best to find innovative financial solutions for climate resilience and resilient infrastructure," he said. Climate projects should also be able to tap into multiple funds more easily, Oliveira said. Rioux also called for the creation of an international guarantee fund to back individual national banks should they need resources to combat climate change. Additionally, local governments should be able to deal directly with climate funds, instead of having to work through the federal government, he added. The director of Brazil's development bank Nelson Barbosa also noted that a lack of financial guarantees and exchange rate volatility hinder banks and country's ability to access climate funds. The G20 working group will present a report with suggestions to address these issues in July, in Belem — the capital of northern Para state — Oliveira said. The city will also host Cop30 in 2025. Rio Grande do Sul Brazil's federal government is discussing a line of credit to southern Rio Grande do Sul state, which has been hit by heavy rainfall and historic flooding since late April, Barbosa said. "A special line of credit will be needed for reconstruction," he said. "We already have lines for adaptation and mitigation and now we have to think about lines to take care of losses and damages. Reality has arrived, and development banks have to deal with the effects of the climate." But he did not give further specifics on the measures. On Monday, President Luiz Inacio Lula da Silva called for the creation of an international fund backed by "people that pollute the planet" to aid Rio Grande do Sul. He has in the past called on rich nations to fund global efforts to mitigate climate change. Rains in Rio Grande do Sul have left 161 people dead, 85 missing and over 581,600 people displaced, according to the state's civil defense. Rebuilding the state will cost over R19bn ($3.7bn), according to the state government. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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