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COP28 LATEST: Another day at COP28, another day of pledges and promises from world leaders. Here’s the rundown on the latest agreements:
A global cooling pledge: More than 60 countries have signed onto a global “cooling pledge” that would aim to reduce cooling-related emissions – the first of its kind to focus on the sector, Reuters reports.
The United States, Canada, and Kenya were among the 63 countries to sign onto the promise, which would commit countries to reduce cooling-related emissions, such as those involved in refrigeration and air conditioning, by at least 68% compared to 2022 levels by 2050.
“We want to lay out a pathway to reduce cooling-related emissions across all sectors but increase access to sustainable cooling,” U.S. climate envoy John Kerry told reporters at the climate summit.
The UN Environment Programme estimates that more than 1 billion people are at risk of extreme heat due to a lack of access to cooling, with the majority of the vulnerable population living in Africa and Asia. However, greenhouse gas emissions related to cooling make up more than 10% of total GHG emissions, according to an Annual Reviews study. Furthermore, cooling equipment consumes nearly 20% of current total electricity consumption – and is expected to more than triple by 2050.
Separately, at least 118 countries agreed on Saturday to support another pledge to triple renewable energy and double energy efficiency rates by 2030.
Focus on fusion: Kerry announced that the U.S. will work with other governments to ramp up efforts to support nuclear fusion as a new source of carbon-free energy, which he says will be a “critical piece of our energy future.”
Nuclear fusion has been suggested as an alternative energy source to fossil fuels, as it emits no CO2 or other harmful atmospheric emissions. On top of that, it doesn’t produce the radioactive waste of nuclear fission. However, researchers have been trying for decades to harness the energy that results from the chemical reaction – a difficult feat due to the required high temperatures and pressures that can easily sputter.
Kerry’s plan, outlined at the Atlantic Council Global Energy Forum, is to focus on five areas for international partnerships: research and development, supply chain improvement, regulation, workforce issues and public engagement. The strategy would involve 35 nations.
If you’ll recall, the United Kingdom and the U.S. signed a cooperation agreement on fusion in November. Other countries pursuing fusion include Australia, China, Germany, and Japan.
Dairy majors unite on methane: Six of the world’s largest dairy companies have agreed to disclose their methane emissions in a new global alliance, Reuters reports.
The six members of the Dairy Methane Action Alliance include Danone, Bel Group, General Mills, Lactalis USA, Kraft Heinz, and Nestle. The groups will be required to report their emissions by mid-2024 and create methane action plans by the end of the year.
Livestock is responsible for about 30% of global anthropogenic methane emissions, according to the U.N.’s Food and Agriculture Organization. Advocacy groups have stated that tackling methane should be a priority at this year’s climate conference.
Companies involved in the new alliance do not need to pledge to reduce their methane emissions by a certain amount, but measurement and reporting are essential to eventually reduce emissions, Katie Anderson, a senior director for the Environmental Defense Fund’s food and forest program, told reporters on a press call.
Related, ICYMI: Six major oil companies have promised to pledge tens of millions of dollars to a grant fund aimed at helping developing countries curb methane emissions. Those that are missing from the pledge? Chevron and Exxon Mobil. Read more from Bloomberg here.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment Writers Breanne Deppisch (@breanne_dep) and Nancy Vu (@NancyVu99). Email [email protected] or [email protected] for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
VENEZUELA INCHES TOWARD CONFLICT IN GUYANA: Venezuelan President Nicolás Maduro ordered state-run companies last night to begin oil exploration and mining activity in neighboring Guyana, sparking new fears of outright conflict over the oil- and mineral-rich Essequibo territory.
Speaking to the public in a televised address, Maduro said he has authorized Venezuelan oil company PDVSA and the country’s iron and steel maker, CVG, to “immediately begin” creating new divisions for the disputed territory, and said Caracas will proceed with authorizing operating licenses for both companies for the exploration of oil, gas, and mines in the territory.
“I propose a special law to ban all companies that operate with Guyanese concessions from any transaction,” Maduro said, adding that Guyanese companies will have three months to withdraw from the area before Venezuela’s state-run companies begin operations.
Venezuela will also proceed with the creation of a “special military unit” for the Essequibo region, Maduro said, which will be based in a neighboring Venezuelan state.
The response: Guyanese President Irfaan Ali said in an interview yesterday that he is reporting the matter both to the International Court of Justice—which expressly disapproved of Venezuela’s referendum just days before it was held—as well as the U.N. Security Council.
Maduro’s regime has shown a “blatant disregard” for international law, Ali said in an interview yesterday, noting that he had already spoken to U.N. Secretary General Antonio Guterres about the matter.
Meanwhile, Brazil’s Defense Ministry said it is continuing to reinforce its northern border in preparation for a feared conflict, and is currently moving armored vehicles and additional troops to the Brazilian Boa Vista state, which shares a border with both countries.
“Neither side will be able to take advantage of our territory,” one army officer told Reuters. Read more from Breanne here.
PUTIN MAKES RARE FOREIGN TRIP TO MEET WITH SAUDI AND UAE LEADERS: Russian President Vladimir Putin was escorted by four Russian fighter jets today for meetings in Saudi Arabia and the UAE, part of a broader Middle East diplomatic effort to bolster ties with non-Western countries.
During Putin’s trip to Saudi Arabia, which Reuters notes appeared “rushed” in its planning, advisers said he and Saudi Crown Prince Mohammed bin Salman are slated to discuss the Israel-Hamas conflict, the war in Ukraine, and oil. It is their first face-to-face visit since 2019.
The visits to the UAE and Saudi Arabia come just days after the additional supply cuts announced by OPEC+ failed to push prices higher, as members had hoped. Futures for international benchmark Brent crude fell to $74.29 as of mid-morning today, a $1.91 decline from the previous day of trading, while U.S.-based West Texas Intermediate futures dropped to $70.23, down by $2.09 compared to yesterday.
HOUSE ENERGY CHAIRWOMAN TO SKIP COP28: Energy and Commerce Chairwoman Cathy McMorris Rodgers will no longer be leading House Republicans’ bipartisan delegation to COP28. Instead, Vice Chairman Kelly Armstrong will step up to lead the group.
A spokesperson for the committee confirmed the switch-up to the Washington Examiner, citing a scheduling conflict.
“Unfortunately, Chair Rodgers’s schedule has changed,” said Sean Kelly, a press secretary for Republicans on the E&C committee. “She is thrilled Vice Chair Armstrong will be leading the delegation in Dubai in her place.”
The significance: The shake-up comes as a surprise, as many House Republicans rallied behind Rodgers leading the delegation as a sign that the party was ready to meaningfully engage on the issue of climate change and tackle lowering emissions. Just yesterday, Rodgers spoke on the delegation’s planned message ahead of the global climate conference – one that was focused around “building on America’s energy leadership, to demonstrate a path to a cleaner, more secure world, and more prosperous and resilient communities.”
More than a dozen Republicans are scheduled to head for Dubai, many for the first time.
E&E News had the scoop first – read that here.
BRUSSELS PROPOSES 3-YEAR DELAY FOR UK ELECTRIC VEHICLES TARIFFS: The European Commission proposed a three-year delay to EV sales tariffs between the EU and the United Kingdom, in a reprieve to automakers, as well as the British government, which had spent months pushing for delay of the 10% levy on EV batteries that had been slated to begin on Jan. 1.
The European Commission had previously insisted it would stick with its original timetable, which it believed would help spur new incentives for battery makers to invest in European-based battery projects. But the proposal sparked fierce consternation from automakers, who argued that in the short term, higher prices for locally made vehicles would prompt more EV buyers to purchase from Chinese automakers instead.
“This removes the threat of tariffs on export of E.U. electric vehicles to the U.K. and vice versa,” the European Commission’s vice president, Maroš Šefčovič, told reporters.
Why it matters: Currently, 60% of cars manufactured in the UK are exported to the EU, meaning the 10% tariff would have hit hard if it were to come into force next month as planned.
The delay also gives European automakers time to build out their own battery supply chains. Neither Britain nor the EU manufacturers have nearly enough batteries to supply their own electric vehicles, forcing an outsize dependence on Chinese manufacturers. Under the plan, European automakers had warned they stood to lose some $4.6 billion in profits—and production cuts of around 500,000 EVs—between 2024 and 2027. Read more from the Financial Times here.
NEW MEXICO UNVEILS PLAN FOR WASTEWATER FROM DRILLING: New Mexico is investing $500 million to build out a first-of-its-kind strategic water supply aimed at boosting clean energy production amid worsening drought conditions in the region.
New Mexico Gov. Michelle Lujan Grisham, a Democrat, unveiled the plan yesterday on the sidelines of the COP28 summit in Dubai. The state will purchase drilling wastewater and brackish water from underground sources, she said, which it will then use to boost clean energy production, or treat to use for public consumption.
New Mexico—which is the second-largest oil and gas producing state behind Texas—is looking to find a use for the enormous amounts of water generated by fossil fuel production, which totaled more than 2 billion barrels last year alone.
Read more from The Hill here.
FTC INVESTIGATES EXXON’S $60B MERGER WITH PIONEER: Antitrust enforcers are investigating Exxon Mobil’s nearly $60 billion merger with Pioneer Natural Resources, which is set to be the largest oil and gas deal in the last two decades.
In an email sent to employees, Pioneer President and Chief Operating Officer Richard Dealy said the company will “work diligently” to provide regulators with the information they are requesting but stated that the closing of the deal is “still expected to occur by the end of June 2024.”
In October, Exxon announced it would be buying Pioneer in a $59.5 billion all-stock deal — the company’s largest acquisition since its $75 billion merger with Mobil in 1998 and the biggest merger this year. The takeover would secure Exxon’s status as the largest player in the fracking industry, covering more ground in the Permian Basin of West Texas.
Exxon previously stated the merger would streamline the resources of the two companies while expecting a cost of supply of less than $35 per barrel from Pioneer’s assets.
The FTC can sue to block a merger in court or clear the deal by declining to take action. Companies sometimes cancel deals when they learn an antitrust agency plans to sue to try to kill the deal. Read more from Nancy here.
The Rundown
E&E News Google taps hot rocks to cool climate
Bloomberg A flawed green city of the future holds a secret to taming heat
Reuters China turbo-charges cobalt mine output despite price crash
