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Tag: Climate

  • Climate activist blasts leaders holding onto fossil projects

    Climate activist blasts leaders holding onto fossil projects

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    SHARM EL-SHEIKH, Egypt — Ugandan climate activist Vanessa Nakate slammed world leaders Tuesday who persist in backing new fossil fuel projects despite science warnings that this will push temperatures across the planet to dangerous highs.

    Countries agreed in the 2015 Paris climate accord to limit global warming to 1.5 degrees Celsius (2.7 Fahrenheit) by the end of the century if possible. But scientists say that with about 1.2 Celsius (21. Fahrenheit) of warming already reached, that target is likely to be missed.

    “The focus for many leaders is about making deals for fossil fuel lobbyists, surviving the next election cycle and grabbing as much short-term profit as possible,” Nakate said at an event on the sidelines of the U.N. climate talks in Sharm el-Sheikh, Egypt.

    She warned that the annual meeting is being infiltrated by oil and gas representatives who are turning it into “a sales and marketing conference for more pollution and more destruction and more devastation.”

    Environmental groups have counted more than 600 delegates with links to the fossil fuel industry at the two-week meeting.

    Nakate cited research from the International Energy Agency stating that there can be no new investment in coal, oil or gas if the world is to stay below 1.5 C.

    This was being undermined by massive public spending on fossil fuel subsidies, partly as a result of the fallout from Russia’s attack on Ukraine which has triggered a scramble for alternative sources of oil and gas.

    “You are sowing the wind and frontline communities are reaping the whirlwind,” she said. “You are sowing seeds of coal, oil and gas while frontline communities are reaping havoc, devastation and destruction.”

    Many developing nations are disproportionately impacted by climate change as they are less able to adapt to extreme weather exacerbated by global warming.

    Nakate called out those countries that have issued new licenses for oil and gas exploitation in their territorial waters, or promised investments in new fossil fuel infrastructure in Africa.

    Jochen Flasbarth, a long-time German climate negotiator, said Nakate was right to highlight the urgency of tackling climate change but questioned her criticism of politicians concerned about elections.

    “You might be right that politicians sometimes have a short-term view, but (you should) still make the best out of these elections,” he said, adding that “it is young people who increasingly did not go to elections over the last ten years” in many democratic nations.

    Flasbarth told Nakate that young people “need to collaborate” with democratic processes to help “strengthen democracy around the world.”

    Nakate’s speech came as negotiators at the conference haggle over numerous thorny issues including increasing efforts to cut greenhouse gases and providing more financial help to poor nations.

    Ministers began arriving in Sharm el-Sheikh on Monday to provide a push for the meeting to clinch a substantial deal by its schedule close on Friday.

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    Follow AP’s climate and environment coverage at https://apnews.com/hub/climate-and-environment

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    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • Indonesia signs deals to accelerate clean energy transition

    Indonesia signs deals to accelerate clean energy transition

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    NUSA DUA, Indonesia — Indonesia signed deals with international lenders and major nations on Tuesday under which it is to receive billions of dollars in funding to help the country increase its use of renewable energy.

    The $20 billion agreement was announced on the sidelines of the Group of 20 summit in Bali, Indonesia. Called a Just Energy Transition Partnership, it is meant to help developing countries reduce their reliance on fossil fuels such as coal and gas that cause carbon emissions that contribute to climate change.

    It’s an important step for Indonesia, a major exporter of coal that has abundant potential for developing cleaner energy.

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  • World Population hits 8 billion, creating many challenges

    World Population hits 8 billion, creating many challenges

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    LAGOS, Nigeria — The world’s population is projected to hit an estimated 8 billion people on Tuesday, according to a United Nations projection, with much of the growth coming from developing nations in Africa.

    Among them is Nigeria, where resources are already stretched to the limit. More than 15 million people in Lagos compete for everything from electricity to light their homes to spots on crowded buses, often for two-hour commutes each way in this sprawling megacity. Some Nigerian children set off for school as early as 5 a.m.

    And over the next three decades, the West African nation’s population is expected to soar even more: from 216 million this year to 375 million, the U.N. says. That will make Nigeria the fourth-most populous country in the world after India, China and the United States.

    “We are already overstretching what we have — the housing, roads, the hospitals, schools. Everything is overstretched,” said Gyang Dalyop, an urban planning and development consultant in Nigeria.

    The U.N.’s Day of 8 Billion milestone Tuesday is more symbolic than precise, officials are careful to note in a wide-ranging report released over the summer that makes some staggering projections.

    The upward trend threatens to leave even more people in developing countries further behind, as governments struggle to provide enough classrooms and jobs for a rapidly growing number of youth, and food insecurity becomes an even more urgent problem.

    Nigeria is among eight countries the U.N says will account for more than half the world’s population growth between now and 2050 — along with fellow African nations Congo, Ethiopia and Tanzania.

    “The population in many countries in sub-Saharan Africa is projected to double between 2022 and 2050, putting additional pressure on already strained resources and challenging policies aimed to reduce poverty and inequalities,” the U.N. report said.

    It projected the world’s population will reach around 8.5 billion in 2030, 9.7 billion in 2050 and 10.4 billion in 2100.

    Other countries rounding out the list with the fastest growing populations are Egypt, Pakistan, the Philippines and India, which is set to overtake China as the world’s most populous nation next year.

    In Congo’s capital, Kinshasa, where more than 12 million people live, many families struggle to find affordable housing and pay school fees. While elementary pupils attend for free, older children’s chances depend on their parents’ incomes.

    “My children took turns” going to school, said Luc Kyungu, a Kinshasa truck driver who has six children. “Two studied while others waited because of money. If I didn’t have so many children, they would have finished their studies on time.”

    Rapid population growth also means more people vying for scarce water resources and leaves more families facing hunger as climate change increasingly impacts crop production in many parts of the world.

    “There is also a greater pressure on the environment, increasing the challenges to food security that is also compounded by climate change,” said Dr. Srinath Reddy, president of the Public Health Foundation of India. “Reducing inequality while focusing on adapting and mitigating climate change should be where our policy makers’ focus should be.”

    Still, experts say the bigger threat to the environment is consumption, which is highest in developed countries not undergoing big population increases.

    “Global evidence shows that a small portion of the world’s people use most of the Earth’s resources and produce most of its greenhouse gas emissions,” said Poonam Muttreja, executive director of the Population Foundation of India. “Over the past 25 years, the richest 10% of the global population has been responsible for more than half of all carbon emissions.”

    According to the U.N., the population in sub-Saharan Africa is growing at 2.5% per year — more than three times the global average. Some of that can be attributed to people living longer, but family size remains the driving factor. Women in sub-Saharan Africa on average have 4.6 births, twice the current global average of 2.3.

    Families become larger when women start having children early, and 4 out of 10 girls in Africa marry before they turn 18, according to U.N. figures. The rate of teen pregnancy on the continent is the highest in the world — about half of the children born last year to mothers under 20 worldwide were in sub-Saharan Africa.

    Still, any effort to reduce family size now would come too late to significantly slow the 2050 growth projections, the U.N. said. About two-thirds of it “will be driven by the momentum of past growth.”

    “Such growth would occur even if childbearing in today’s high-fertility countries were to fall immediately to around two births per woman,” the report found.

    There are also important cultural reasons for large families. In sub-Saharan Africa, children are seen as a blessing and as a source of support for their elders — the more sons and daughters, the greater comfort in retirement.

    Still, some large families “may not have what it takes to actually feed them,” says Eunice Azimi, an insurance broker in Lagos and mother of three.

    “In Nigeria, we believe that it is God that gives children,” she said. “They see it as the more children you have, the more benefits. And you are actually overtaking your peers who cannot have as many children. It looks like a competition in villages.”

    Politics also have played a role in Tanzania, where former President John Magufuli, who ruled the East African country from 2015 until his death in 2021, discouraged birth control, saying that a large population was good for the economy.

    He opposed family planning programs promoted by outside groups, and in a 2019 speech urged women not to “block ovaries.” He even described users of contraceptives as “lazy” in a country he said was awash with cheap food. Under Magufuli, pregnant schoolgirls were even banned from returning to classrooms.

    But his successor, Samia Suluhu Hassan, appeared to reverse government policy in comments last month when she said birth control was necessary in order not to overwhelm the country’s public infrastructure.

    Even as populations soar in some countries, the U.N. says rates are expected to drop by 1% or more in 61 nations.

    The U.S. population is now around 333 million, according to U.S. Census Bureau data. The population growth rate in 2021 was just 0.1%, the lowest since the country was founded.

    “Going forward, we’re going to have slower growth — the question is, how slow?” said William Frey, a demographer at the Brookings Institution. “The real wild card for the U.S. and many other developed countries is immigration.”

    Charles Kenny, a senior fellow at the Center for Global Development in Washington, says environmental concerns surrounding the 8 billion mark should focus on consumption, particularly in developed countries.

    “Population is not the problem, the way we consume is the problem — let’s change our consumption patterns,” he said.

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    Asadu reported from Abuja, Nigeria. Associated Press writers Krista Larson in Dakar, Senegal; Sibi Arasu in Bengaluru, India; Wanjohi Kabukuru in Sharm El Sheikh, Egypt; Christina Larson in Washington; Rodney Muhumuza in Kampala, Uganda, and Jean-Yves Kamale in Kinshasa, Congo, contributed.

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    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • Climate confab heads into final week, warming goal uncertain

    Climate confab heads into final week, warming goal uncertain

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    SHARM EL-SHEIKH — Global climate talks in Egypt headed into their second half on Monday with plenty of uncertainty left over whether there’ll be a substantial deal to combat climate change.

    Tens of thousands of attendees, including delegates from nearly 200 countries, observers, experts, activists and journalists, returned to the conference zone in the Red Sea resort of Sharm el-Sheikh after a one-day break.

    The U.N.’s top climate official appealed for constructive diplomacy to match the high-flying rhetoric heard during the opening days of the talks.

    “Let me remind negotiators that people and planet are relying on this process to deliver,” U.N. Climate Secretary Simon Stiell said.

    “Let’s use our remaining time in Egypt to build the bridges needed to make progress,” he added, citing the goals of limiting global temperature rise to 1.5 Celsius (2.7 Fahrenheit) as agreed in the Paris climate accord, adapting to climate change, and providing financial aid to vulnerable nations trying to cope with its impacts.

    What happens at the G-20 in Bali, as well as at a meeting between U.S. President Joe Biden and China’s President Xi Jinping on the sidelines, will be crucial to what happens at the climate summit. If the G-20 makes progress on climate, it will be easier in Egypt, but if they backslide, especially on the 1.5 goal, it will undermine the climate summit, said Alden Meyer, a long-time observer of U.N. climate meetings with the environmental think tank E3G.

    “What the two presidents decide in Bali will play directly into the endgame here in Sharm El-Sheikh,” he said.

    A handshake between Biden and Xi was already noted positively by negotiators at COP, who are also looking to see whether the U.S. and China can resume formal talks on climate.

    A key issue is whether the G-20 reiterate their commitment to the 1.5-degree climate goal that they made last year, when they declared it to be a G-20 goal as well. If there’s a push to drop it, it would be a setback for climate change fighting, Meyer said.

    Last past climate conferences, COP27 is to put together a “cover decision,” an all-encompassing document that lays out the political goals and often gets name for the conference venue, like the Glasgow Climate Pact. But discussions on the cover decision have started late, Meyer said. Some nations don’t even want one, while others are pushing for a strong one, he said.

    “The negotiators’ job is to not make any concessions until ministers come,” he said.

    Some delegates were already talking about the possibility of a walkout by developing nations unless key demands for more aid to poor countries are met during the talks.

    A major theme at the COP27 meeting has been a call for wealthy nations who benefited most from industrialization that contributed to global warming to do more to help poor countries who have contributed little to global emissions. Their demands include compensation for loss and damage from extreme floods, storms and other devastating effects of climate change suffered by developing countries.

    “Now rich countries need to play their part,” said Rachel Cleetus, policy director and lead economist at the Union of Concerned Scientists.

    “So this is going to be the litmus test of success at this COP, at COP27, that we get this loss and damage finance facility agreed here and that it’s up and running in two years,” Cleetus said at a press briefing.

    The Group of Seven leading economies launched a new insurance system Monday to provide swift financial aid when nations are hit by devastating effects of climate change.

    The so-called Global Shield is backed by the V20 group of 58 climate-vulnerable nations and will initially receive more than 200 million euros (dollars) in funding, mostly from Germany. Initial recipients include Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines and Senegal.

    Ghana’s Finance Minister Ken Ofori-Atta called it “a path-breaking effort” that would help protect communities when lives and livelihoods are lost.

    But civil society groups were skeptical, warning that the program should not be used as a way to distract from the much broader effort to get big polluters to pay for the loss and damage they’ve already caused with their greenhouse gases.

    Poorer, vulnerable nations also want financing to help them shift to clean energy and for projects to adapt to global warming.

    The Global Shield has “some useful elements but it’s not a substitute for a loss and damage finance facility,” Cleetus said, noting that rich countries have contributed millions of dollars, but developing nations need billions to deal with a hotter planet.

    India made an unexpected proposal over the weekend for this year’s climate talks to end with a call for a phase down of all fossil fuels.

    The idea is likely to get strong pushback from oil and gas-exporting nations, including the United States, which promotes natural gas as a clean ‘bridge fuel’ to renewables.

    Two diplomats who spoke to The Associated Press on condition of anonymity because the proposal was yet to be officially debated said India could be trying to get payback for last year’s meeting, when it was publicly shamed for resisting a call to “phase out” coal. Countries compromised by calling for a vaguer “phase down” instead, which was nevertheless seen as significant because it was the first time a fossil fuel industry was put on notice.

    The talks are due to wrap up Friday but could extend into the weekend if negotiators need more time to reach an agreement.

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    AP Science writer Seth Borenstein contributed to this report.

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    Follow AP’s climate and environment coverage at https://apnews.com/hub/climate-and-environment

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    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • Saudi Arabia has ‘green vision’ at COP27, critics unmoved

    Saudi Arabia has ‘green vision’ at COP27, critics unmoved

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    SHARM EL-SHEIKH, Egypt — Hydrogen cars and vehicles that capture their tailpipe pollutants. Computer mice made from recycled ocean waste plastic. Hundreds of millions of trees planted in the desert. Saudi Arabia’s vision of an environmentally friendly future is on display just a short drive from the venue of the U.N. climate summit being held in Egypt.

    What’s not highlighted in the glossy gallery are the earth-warming fossil fuels that the country continues to pump out of the ground for global export. Fossil fuel emissions are the reason why negotiators from nearly 200 countries have gathered at the annual two-week conference, haggling over how pollution can be cut and how fast to do it.

    In and around the conference, Saudi Arabia is presenting itself as a leader in green energies and eco-friendly practices, with flashy pavilions, glossy presentations and optimistic assessments of technologies like carbon capture, which can remove carbon dioxide from the air but is costly and years away from being deployed at scale.

    “We have hugely ambitious goals and targets,” Saudi climate envoy Adel al-Jubeir said at the two-day Saudi Green Initiative Forum on COP27′s sidelines. “We want to be an example to the world in terms of what can be done.”

    The effort is part of a large push by Saudi Arabia, which has some of the world’s largest reserves of oil and is a leader of the OPEC oil cartel, to make the case that the nation should be part of the transition to renewable energies while holding on to its role as the top global crude oil exporter. That vision is sharply contested by climate scientists and environmental experts, who argue that Saudi Arabia and other countries with large reserves of oil simply want to distract the world to continue with business as usual.

    The Saudi energy minister, Prince Abdulaziz bin Salman al Saud, announced a raft of new green projects or updates to existing ones, from beefed up tree planting pledges to fresh solar energy energy projects in the pipeline.

    Crown Prince Mohammed bin Salman launched his Saudi Green Initiative ahead of last year’s COP26 conference in Glasgow, Scotland, with a target for “net zero” greenhouse gas emissions by 2060.

    Still, energy exports are the Saudi economy’s mainstay, earning $150 billion in annual revenue, despite efforts to diversify revenue as the global transition away from fossil fuel reliance accelerates.

    At the Saudi forum, officials and invited guest speakers from renewable energy companies held forth on topics like clean hydrogen, greening the desert, and a futuristic desert city project called Neom.

    State-owned oil giant Saudi Aramco’s CEO, Amin Nasser, said the world needs more investment in oil and gas, not less, a message at odds with the sentiment among many country delegations and climate experts and activists attending COP27.

    “I’m concerned because of lack of investment in the oil and gas in particular,” said Nasser, touching on a frequent theme. Saudi Arabia has resisted calls to urgently phase out fossil fuels, warning that a premature switch has led to price spikes and shortages.

    “Yes, there is good investment happening in the alternatives,” such as wind and solar power, he said, adding that the amount of money spent on oil production capacity has fallen to $400 billion a year from $700 billion in 2014.

    “That is not enough to meet global demand in the mid to long term,” he said.

    An Aramco spokesman said Nasser wasn’t available for an interview.

    Among the Saudi announcements, there were plans to set up a regional center to “advance emissions reductions” and one to host a regional climate week ahead of next year’s COP meeting.

    Saudi Arabia is also set to build 13 renewable energy projects with a total generating capacity of 11.4 gigawatts, though experts said that’s a step back from numbers announced in previous years.

    Once they’re up and running, the new energy projects will cut carbon dioxide emissions by about 20 million tons a year.

    Saudi Aramco plans to build the world’s biggest carbon capture and storage hub, which will store up to 9 million tons of carbon dioxide when its up and running in 2027.

    It’s all part of the kingdom’s pledged to cut emissions by 278 million tons a year by 2030. That’s still small compared to about 10 billion metric tons of carbon spewed globally into the air annually.

    The kingdom also upgraded its tree planting goal to 600 million by 2030, including mangroves, up from its 450 million initial target.

    Climate experts weren’t convinced.

    “Saudi Arabia would be better placed to focus on cutting emissions rather than relying on carbon capture and storage and questionable reductions from planting trees, the offsets of which would simply allow them to continue increasing emissions from burning fossil fuels,” said Mia Moisio, a an energy policy expert focusing on Middle East and North Africa at the New Climate Institute think tank.

    “To keep emissions on a 1.5˚C pathway, all governments must focus on cutting fossil fuel emissions, not offsetting them.”

    The Climate Action Tracker, operated by the institute and its partners, rates Saudi Arabia as “highly insufficient.”

    The tracker analyzes nations’ climate targets and policies compared to the goals of the 2015 Paris Agreement that spells out ideally limiting the Earth’s temperature rise to 1.5 Celsius (2.7 Fahrenheit).

    Saudi authorities are promoting what they call a “circular carbon economy” to cut emissions from oil and gas operations, but the tracker says this it “only addresses a fraction of relevant emissions in Saudi Arabia and globally, as most emissions related to oil and gas come from fuel combustion rather than extraction and processing.”

    Saudi Arabia’s oil and gas assets spew 900 million tons of emissions a year, according to an inventory of top known sources of greenhouse gas emitters compiled by the Climate TRACE coalition and launched at COP27.

    There’s also a plan for a greenhouse gas crediting and offsetting scheme next year, with few details. Carbon credits, which allow countries and companies to pay to reduce their carbon footprints, say by planting trees, have become increasingly controversial, with critics saying they’re a license for polluting companies to keep polluting.

    At least year’s talks in Glasgow, Saudi Arabia faced accusations that its negotiators were working to block climate measures that would threaten demand for oil – a charge that the energy minister called a lie.

    As negotiations on the final agreement head into their second and final week, watchdog groups warned about the influence of so-called petrostates and industry lobbyists. They counted 636 people linked to fossil fuel companies on the meeting’s provisional list of participants, a quarter more than last year’s tally.

    “The Saudis may well be coming to COP27 with a green hat on and extolling the virtues of planting trees, but this is a state that continues to profit wildly from the destructive practices causing the climate crisis,” said Alice Harrison, a campaigner at Global Witness, one of the groups that did the count. “Any exhibitions, talks or shows to the contrary are pure greenwashing.”

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    Follow AP’s climate and environment coverage at https://apnews.com/hub/climate-and-environment

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    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • Cocoa farmers fear climate change lowering crop production

    Cocoa farmers fear climate change lowering crop production

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    KOREAGUI, Ivory Coast — For more than 40 years, Jean Baptiste Saleyo has farmed cocoa on several acres of his family’s land in Ivory Coast, a West African nation that produces almost half the world’s supply of the raw ingredient used in chocolate bars.

    But this year Saleyo says the rains have become unpredictable, and he fears his crop could be yet another victim of climate change.

    “When it should have rained, it didn’t, it didn’t rain,” Saleyo said as he inspected the ripeness of one of his cocoa pods. “It’s raining now, but its already too late.”

    Cocoa farming employs nearly 600,000 farmers here in Ivory Coast, ultimately supporting nearly a quarter of the country’s population — about 6 million people, according to the Coffee-Cocoa Council.

    And it makes up about 15% of Ivory Coast’s national GDP, according to official figures.

    National production remains on track because the amount of land being cultivated is on the rise. But experts say small-scale farmers are hurting this year. For the cocoa tree to fruit well, rains need to come at the right times in the growing cycle. Coming at the wrong times risks crop disease.

    Some who are used to producing 500 kilograms are looking at only 200 kilograms this year, said Jean Yao Brou, secretary-general of the Anouanze cooperative, which helps farmers bring their crops to markets.

    “Our producers have big worries with the production,” he said.

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  • UN climate talks near halftime with key issues unresolved

    UN climate talks near halftime with key issues unresolved

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    SHARM EL-SHEIKH, Egypt — As the U.N. climate talks in Egypt near the half-way point, negotiators are working hard to draft deals on a wide range of issues they’ll put to ministers next week in the hope of getting a substantial result by the end.

    The two-week meeting in Sharm el-Sheikh started with strong appeals from world leaders for greater efforts to curb greenhouse gas emissions and help poor nations cope with global warming.

    Scientists say the amount of greenhouse gases being pumped into the atmosphere needs to be halved by 2030 to meet the goals of the Paris climate accord. The 2015 pact set a target of ideally limiting temperature rise to 1.5 Celsius (2.7 Fahrenheit) by the end of the century, but left it up to countries to decide how they want to do so.

    With impacts from climate change already felt across the globe, particularly by the world’s poorest, there has also been a push by campaigners and developing nations for rich polluters to stump up more cash. This would be used to help developing countries shift to clean energy and adapt to global warming; increasingly there are also calls for compensation to pay for climate-related losses.

    Here is a look at the main issues on the table at the COP27 talks and how they might be reflected in a final agreement.

    KEEPING COOL

    The hosts of last year’s talks in Glasgow said they managed to “keep 1.5 alive,” including by getting countries to endorse the target in the outcome document. But U.N. chief Antonio Guterres has warned that the temperature goal is on life support “and the machines are rattling.” And campaigners were disappointed that agenda this year doesn’t explicitly cite the threshold after pushback from some major oil and gas exporting nations. The talks’ chair, Egypt, can still convene discussions on putting it in the final agreement.

    CUTTING EMISSIONS

    Negotiators are trying to put together a mitigation work program that would capture the various measures countries have committed to reducing emissions, including for specific sectors such as energy and transport. Many of these pledges are not formally part of the U.N. process, meaning they cannot easily be scrutinized at the annual meeting. A proposed draft agreement circulated early Saturday had more than 200 square brackets, meaning large sections were still unresolved. Some countries want the plan to be valid only for one year, while others say a longer-term roadmap is needed. Expect fireworks in the days ahead.

    SHUNNING FOSSIL FUELS

    Last year’s meeting almost collapsed over a demand to explicitly state in the final agreement that coal should be phased out. In the end, countries agreed on several loopholes, and there are concerns among climate campaigners that negotiators from nations which are heavily dependent on fossil fuels for their energy needs or as revenue might try to roll back previous commitments.

    MONEY MATTERS

    Rich countries have fallen short on a pledge to mobilize $100 billion a year by 2020 in climate finance for poor nations. This has opened up a rift of distrust that negotiators are hoping to close with fresh pledges. But needs are growing and a new, higher target needs to be set from 2025 onward.

    COMPENSATION

    The subject of climate compensation was once considered taboo, due to concerns from rich countries that they might be on the hook for vast sums. But intense pressure from developing countries forced the issue of ‘loss and damage’ onto the formal agenda at the talks for the first time this year. Whether there will be a deal to promote further technical work or the creation of an actual fund remains to be seen. This could become a key flashpoint in the talks.

    MORE DONORS

    One way to raise additional cash and resolve the thorny issue of polluter payment would be for those countries that have seen an economic boom in the past three decades to step up. The focus is chiefly on China, the world’s biggest emitter, but others could be asked to open their purses too. Broadening the donor base isn’t formally on the agenda but developed countries want reassurances about that in the final texts.

    CASH CONSTRAINTS

    Countries such as Britain and Germany want all financial flows to align with the long-term goals of the Paris accord. Other nations object to such a rule, fearing they may have money withheld if they don’t meet the strict targets. But there is chatter that the issue may get broader support next week if it helps unlock other areas of the negotiations.

    SIDE DEALS

    Last year’s meeting saw a raft of agreements signed which weren’t formally part of the talks. Some have also been unveiled in Egypt, though hopes for a series of announcements on so-called Just Transition Partnerships — where developed countries help poorer nations wean themselves off fossil fuels — aren’t likely to bear fruit until after COP27.

    HOPE TILL THE END

    Jennifer Morgan, a former head of Greenpeace who recently became Germany’s climate envoy, called the talks this year “challenging.”

    “But I can promise you we will be working until the very last second to ensure that we can reach an ambitious and equitable outcome,” she said. “We are reaching for the stars while keeping our feet on the ground.”

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    Follow AP’s climate and environment coverage at https://apnews.com/hub/climate-and-environment

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    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • Biden To Announce More Restrictions on Methane Emissions Amid Push For More Oil

    Biden To Announce More Restrictions on Methane Emissions Amid Push For More Oil

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    SHARM EL-SHEIKH, Egypt (AP) — The Biden administration is ramping up efforts to reduce methane emissions, targeting the oil and gas industry for its role in global warming even as President Joe Biden has pressed energy producers for more oil drilling to lower prices at the gasoline pump.

    Biden was set to announce on Friday a supplemental rule cracking down on emissions of methane — a potent greenhouse gas that contributes significantly to global warming and packs a stronger short-term punch than even carbon dioxide — as he attends a global climate conference in Egypt.

    The new rule by the Environmental Protection Agency follows up on a methane rule Biden announced last year at a United Nations climate summit in Scotland. The 2021 rule targets emissions from existing oil and gas wells nationwide, rather than focusing only on new wells as previous EPA regulations have done.

    The new rule goes a step further and takes aim at all drilling sites, including smaller wells that emit less than 3 tons (2.7 metric tonnes) of methane per year. Small wells currently are subject to an initial inspection but are rarely checked again for leaks.

    The proposal also requires operators to respond to credible third-party reports of high-volume methane leaks.

    A flare to burn methane from oil production is seen on a well pad near Watford City, North Dakota, Aug. 26, 2021. The Biden administration is ramping up efforts to reduce methane emissions, targeting the oil and gas industry for its role in global warming even as President Joe Biden has pressed energy producers for more oil drilling to lower prices at the gasoline pump.

    AP Photo/Matthew Brown, File

    The Biden administration will embark on “a relentless focus to root out emissions wherever we can find them,” White House national climate adviser Ali Zaidi said Friday at climate negotiations in Egypt, hours before the president was set to speak at the international climate summit.

    Oil and gas production is the nation’s largest industrial source of methane, the primary component of natural gas, and is a key target for the Biden administration as it seeks to combat climate change. The United States is among more than 100 countries that have pledged to cut methane emissions by 30% by 2030 from 2020 levels.

    “We must lead by example when it comes to tackling methane pollution — one of the biggest drivers of climate change,″ said EPA Administrator Michael Regan, who also is in Egypt for the climate talks. The new, stronger standards “will enable innovative new technology to flourish while protecting people and the planet,” he said.

    “Our regulatory approach is very aggressive from a timing standpoint and a stringency standpoint,” Regan said at a briefing in Egypt. The old and new rules should be able to prevent more than 80% of the energy waste, about 36 million tons (32.6 million metric tonnes) of carbon emissions, he said.

    Leakage from wells and pipelines is why former Vice President Al Gore and others call natural gas “a bridge to nowhere.” In an interview with The Associated Press, Gore said: “When you work the math, a leakage of 2 to 3% of the methane completely negates the climate advantage of methane gas. And, tragically, the wildcatters that do most of the hydrological fracturing do not pay attention to the methane leakage. You have leakage in the LNG (liquefied natural gas) process, you have leakage in pipelines, you have leakage in the use.”

    The supplemental rule comes as Biden has accused oil companies of “war profiteering” and raised the possibility of imposing a windfall tax on energy companies if they don’t boost domestic production.

    Biden has repeatedly criticized major oil companies for making record-setting profits in the wake of Russia’s war in Ukraine while refusing to help lower prices at the pump for the American people. The Democratic president suggested last week that he will look to Congress to impose tax penalties on oil companies if they don’t invest some of their record-breaking profits to lower costs for American consumers.

    Besides the EPA rule, the new climate and health law approved by Congress in August includes a methane emissions reduction program that would impose a fee on energy producers that exceed a certain level of methane emissions. The fee, set to rise to $1,500 per metric ton of methane, marks the first time the federal government has directly imposed a fee, or tax, on greenhouse gas emissions.

    The law allows exemptions for companies that comply with the EPA’s standards or fall below a certain emissions threshold. It also includes $1.5 billon in grants and other spending to help operators and local communities improve monitoring and data collection for methane emissions, with the goal of finding and repairing natural gas leaks.

    Multiple studies have found that smaller wells produce just 6% of the nation’s oil and gas but account for up to half the methane emissions from well sites.

    “We can’t leave half of the problem on the table and expect to get the reductions that we need to get and protect local communities from pollution,” said Jon Goldstein, senior director of regulatory affairs for oil and gas at the Environmental Defense Fund.

    The oil industry has generally welcomed direct federal regulation of methane emissions, preferring a single national standard to a hodgepodge of state rules.

    Even so, oil and gas companies have asked the EPA to exempt hundreds of thousands of the nation’s smallest wells from the upcoming methane rules.

    Daly reported from Washington.

    Follow the AP’s coverage of climate change at https://apnews.com/hub/climate-and-environment.

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  • Where Is The U.S. Insurance Industry On Climate Change?

    Where Is The U.S. Insurance Industry On Climate Change?

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    The analytical rigor and discipline that we see in modeling and managing mortality risk in life insurance policies is almost completely missing from managing climate risk in U.S. property and casualty (P&C) industry. Are one year P&C policies to blame? In this first of three posts, I will compare the largest European insurance company, AXA, with the largest P&C U.S. firms that publish a climate report: Chubb, Liberty Mutual, and Travelers. Part I is an overview of the topic. Part II examines insurance practices or the liability side of a P&C’s balance sheet. Part III examines investment practices or the asset side of their balance sheets.

    One would expect the property and casualty (P&C) insurance industry to be at the front lines of the fight against climate change. Hurricanes, floods, and forest fires hit the pocketbooks of the insurance industry before anyone else’s. On top of that, it is well known that population growth since 1990 has been above average in the U.S. in regions that are at a high risk for hurricanes and wildfires. These climate catastrophes are also becoming more common. For instance, Travelers states in its 2021 TCFD report, “California wildfires…we now view events such as those of the past few years as being less remote than we thought previously.”

    Climate risk affects both the asset (investments) and the liability side (obligations to make good on losses) of an insurer’s balance sheet). These companies should have expertise in climate as they process a vast number of claims relate to climate induced threats. Hence, if there was ever an industry where doing good coincides with doing well, it must be insurance. Moreover, the analytical rigor that actuaries bring to prediction and management of mortality risk in U.S. life insurance companies is worth celebrating. Why is that formidable intellectual and managerial talent absent in the management of climate risk of U.S. P&Cs? SwissRe, a prominent reinsurer’s 2021 climate report states, “from 2010 to 2020, realized loses have exceeded expectations in almost every year. Very likely, part of this gap can be attributed to trend effects due to climate change.”

    The usual assumption in the U.S. P&C business has been that the possibility of a wildfire in say California is not correlated with a possible hurricane in Florida. What if these events begun to become correlated on account of climate change? Would a simultaneous wildfire in California and a large hurricane in Florida potentially jeopardize the capital position of an U.S. P&C insurer? More worrisome, a massive climate related disaster or a series of big losses will make the hit to the insurer’s capital exponential, as opposed to linear, over time.

    My assessment is that the P&C industry in the U.S. has not been as visible or active as it could have been in leading the climate risk conversation. This is partly because the social, political and economic pressures in Europe are different, and partly because incentives for U.S. policy holders are somewhat more myopic.

    Annual policy writing incentives

    Is the annual policy writing cycle to blame? An insurance company that writes a life insurance policy for the next 15-30 years has incentives to devote actuarial resources to forecast your mortality. However, P&C insurance contracts, covering losses from climate events, are usually written for one year only and the incentives for the industry to look far into the future are necessarily limited.

    The top ten U.S. P&C insurers

    To understand the landscape a bit better, I started digging deeper into the sustainability disclosures of a top French insurer AXA XL (latest available 85 page 2022 climate report). AXA’s revenues were 99 billion euros, half of comes from the P&C business and around 20% from health-related insurance. I consider AXA to be the gold standard of thinking about how climate risk affects both their coverage and investment decisions.

    To benchmark AXA with an insurer from the other side of the Atlantic, I found the top ten P&C insurers, ranked by revenues in the U.S. Those are State Farm, Berkshire Hathaway, Progressive, Allstate, Liberty Mutual, Travelers, USAA, Chubb, Farmers Insurance, and Nationwide. The returns were somewhat disappointing.

    State Farm’s 2021 sustainability report is basic and covers none of the issues AXA raises. My initial thought was such silence may be excused away if most of State Farm’s business relies on covering automobiles and life. But it turns out that $25 billion was collected by State Farm in 2021 as premiums for their home insurance business. That is not pocket change and climate issues would be relevant for the home portfolio.

    Berkshire Hathaway is well-known skeptic of ESG, and their sustainability discussion of their conglomerate covers a grand total of one page. Progressive puts out a 51-page sustainability report but the CEO statement in that report focuses heavily on Progressive’s DE&I efforts, not on climate. Progressive devotes one page to a generic discussion of risks (page 13 and 14) and publishes half a page of generic text on climate (page 15). On the investment side, Progressive states that 80% of their bonds have an MSCI ESG rating. They also state they have started tracking the LEED status of buildings in their CMBS (collateralized mortgage-backed securities) portfolio. Roughly $35 billion of Progressive’s 2021 $47 billion revenue comes from auto insurance for which climate is not such a big concern. However, around $2 billion of annual premiums comes from insuring physical risks where climate should be a risk factor. Moreover, the assets side of all these insurers’ balance sheets is exposed to climate risks.

    Allstate’s 2021 10-K states that out of their $40 billion of premiums revenue, $27 billion relates to auto but a sizeable $10 billion comes from insuring homes. Allstate puts out a 106-page sustainability report but the word “climate” appears only on page 65. The climate discussion spans three pages after page 65. Allstate says it has enough capital to withstand climate stress.

    The efforts of USAA, Farmers and Nationwide in the climate area appear to be minimal. USAA has a webpage labeled “environmental responsibility” where they talk about recycling, reduction of paper usage, savings in water and energy usage. Farmers publishes a page called “corporate citizenship” where their focus is mostly on their employees, diversity and inclusion efforts, cutting usage of plastic, paper, planting of trees, charitable contributions, involvement with charitable NGOs (non-governmental organizations) and the “Farmers Insurance Open,” a golf tournament they organize with the PGA (Professional Golf Association).

    Nationwide puts out a 15-page corporate responsibility report that covers communities, giving, food security, work with the American Red Cross, United Way, investments in affordable housing, health care, education, clean water, children’s wellbeing, diversity and inclusion efforts, diverse boards of directors, ethics and governance. They devote one page to the environment which touches on reducing their own carbon footprint, reducing waste, water usage, paper usage and landfill diversion.

    Liberty Mutual has put out its second TCFD report in 2021. Travelers and Chubb have also published a TCFD report. So, it seems worthwhile to compare the efforts of AXA with these three U.S. firms Chubb, Liberty Mutual, and Travelers. Before embarking on a deep dive, it is worth reiterating that seven of the top 10 U.S. P&C insurers do not report a serious discussion of the implications of climate risk on their balance sheets. The default answer might be to argue that their climate risk exposures are not large enough to warrant a bigger discussion. I doubt that hypothesis. I have to assume that absence of reporting implies absence of either an internal consensus on the importance of climate inside their companies or a lack of investment in understanding that risk.

    The discussion follows a series of questions and different strategies followed by AXA relative to the three American insurers: Chubb, Liberty and Travelers. The comparison is simply meant to be a benchmarking exercise. I understand that every firm would likely follow its own strategy given their opportunities and constraints. Moreover, every company has its own learning curve in building infrastructure required to support such thinking and institute organization wide buy in and processes.

    Here are some high-level findings that cover both the liability and asset side of the companies’ balance sheets.

    High level findings

    Has the insurer articulated a climate strategy?

    All the four companies have articulated their climate strategy. I will leave the discussion of the details to the next part. As a summary, AXA is the only company that linked strategic goals to specific KPIs (key performance indicators). The U.S. insurers produced high level statements without clear links to numerical targets.

    What are the insurer’s views on double materiality?

    AXA is a staunch supporter of double materiality while thinking about ESG. For the uninitiated, “double materiality” simply means thinking about the impact of climate on their investments but the externalities imposed by the operations of the firms underlying these investments on climate. The other insurers do not devote much or any space to double materiality.

    Is a full dashboard of metrics presented?

    Ideally, the firm should present a dashboard of its metrics benchmarked to some objective target or standard and time series data of its metrics over time so that the user can track progress, both over time and keeping time constant, to a benchmarked portfolio. AXA has an excellent dashboard along these lines. I could not find such a detailed dashboard for the other insurers.

    Voluntary audits of climate data

    PwC has issued a limited assurance report on AXA’s processes and underlying assumptions. The other insurers do not discuss assurance of climate risk metrics and processes.

    Is executive and staff compensation tied to climate goals?

    AXA, states that the following three key performance indicators (KPIs) will be included in the compensation packages of executives and 5,000 AXA employees: (i) Dow Jones Sustainability Index ranking; (ii) reduction of operational carbon emissions; and (iii) reduction of investment-related carbon footprint (for its general account assets). I did not find such a commitment in the disclosures of the other insurers.

    I will show in Parts II and III that AXA is similarly quite distinctive compared to its three selected U.S. counterparts. I have not done an in-depth analysis of the differences in the regulatory environments of these four companies regarding corporate reporting and this may explain some of the differences.

    In Part II, I will compare AXA to these three companies in terms of their insurance business or the liability side of their balance sheet.

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  • Nio reports strong third-quarter revenue as it gears up for a big year-end production push

    Nio reports strong third-quarter revenue as it gears up for a big year-end production push

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    Employees stand next to a ET7 sedan at a NIO Inc. dealership in Shanghai, China, on Wednesday, June 8, 2022.

    Qilai Shen | Bloomberg | Getty Images

    Chinese electric vehicle maker Nio on Thursday reported a loss of $577.9 million for the third quarter, significantly wider than a year ago, despite strong revenue following a 29% increase in vehicle sales.

    Here are the key numbers from Nio’s third-quarter earnings report.

    • Revenue: $1.83 billion, up 32.6% from the third quarter of 2021.
    • Adjusted loss per share: 30 cents, versus 6 cents per share in the year-ago period.
    • Cash at quarter end: $7.2 billion, down from $8.1 billion as of June 30.

    Shares of the company were up over 10% in early trading Thursday.

    Nio said on Oct. 1 that it delivered 31,607 vehicles in the third quarter, up 29% from the third quarter of 2021 and a record for the company.

    Nio’s gross margin was 13.3%, slightly improved versus the 13% margin it reported in the second quarter, but down from 20.3% a year ago. Nio said the year-over-year margin decline was due to lower sales of regulatory credits, higher costs that have squeezed margins on its vehicles, and higher spending on its charging and service networks.

    CEO William Bin Li said in a statement that the company has seen strong interest in its new ET5 sedan, which he expects “will support a substantial acceleration of our overall revenue growth in the fourth quarter of 2022.” The ET5, the company’s second sedan, began shipping in September.

    With the ET5 now available, Nio is working to increase production and shorten customer waiting times, Li said. Nio said that investors should expect it to deliver 43,000 and 48,000 vehicles in the fourth quarter, generating total revenue between RMB17,368 million ($2.4 billion) and RMB19,225 million ($2.7 billion).

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  • ‘A twisted joke’: UN’s flagship climate summit sees sharp jump in fossil fuel industry delegates

    ‘A twisted joke’: UN’s flagship climate summit sees sharp jump in fossil fuel industry delegates

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    The sharp jump in attendees associated with some of the world’s biggest polluting oil and gas giants at COP27 is thought to reflect the rise in the influence of the fossil fuel industry to shape the debate.

    Ahmad Gharabli | Afp | Getty Images

    SHARM EL-SHEIKH, Egypt — More than 600 fossil fuel industry delegates have been registered to attend the COP27 climate talks in Egypt, according to analysis from campaign groups, reflecting an increase of over 25% from last year.

    The sharp jump in attendees associated with some of the world’s biggest polluting oil and gas giants at the U.N.’s flagship climate conference is thought to reflect the rise in the influence of the fossil fuel industry to shape the debate.

    Campaigners described the findings as a “twisted joke” and said it appeared to set the stage for COP27 to be a “festival of fossil fuels and their polluting friends, buoyed by recent bumper profits.”

    A spokesperson for Egypt’s COP presidency was not immediately available to comment on the findings of the report.

    Around 35,000 delegates from nearly 200 countries are expected to convene in the Red Sea resort town of Sharm el-Sheikh to discuss collective action to tackle the climate emergency.

    An analysis of data from the U.N.’s provisional list of named attendees by campaign groups Corporate Accountability, Corporate Europe Observatory and Global Witness found that 636 fossil fuel lobbyists had been registered to take part in the talks.

    That reflects an increase of over 100 when compared to last year’s talks in Glasgow, Scotland.

    It means that more fossil fuel lobbyists are represented at the two-week-long summit than any single country besides the United Arab Emirates, which has 1,070 delegates registered compared to 176 last year.

    The data also showed that more fossil fuel industry delegates were set to attend COP27 than any national delegation from the African continent, despite the talks being described as the “Africa COP.”

    Researchers pored through the U.N.’s provisional list of named attendees to count the number of individuals registered either acting on behalf of the fossil fuel industry or those directly affiliated with oil and gas companies, such as BP, Shell and Chevron.

    ‘Extraordinary presence’ of the fossil fuel industry

    “With time running out to avert climate disaster, major talks like COP27 absolutely must advance concrete action to stop the toxic practices of the fossil fuel industry that is causing more damage to the climate than any other industry,” a spokesperson for the groups said.

    “The extraordinary presence of this industry’s lobbyists at these talks is therefore a twisted joke at the expense of both people and planet,” they added.

    To be sure, the burning of fossil fuels such as coal, oil and gas, is the chief driver of the climate crisis.

    A flurry of major U.N. reports published in recent weeks delivered a grim assessment of how close the planet is to irreversible climate breakdown, warning there is “no credible pathway” in place to cap global heating at the critical temperature threshold of 1.5 degrees Celsius.

    “There’s been a lot of lip service paid to this being the so-called African COP, but how are you going to address the dire climate impacts on the continent, when the fossil fuel delegation is larger than that of any African country?” said Philip Jakpor of Corporate Accountability and Public Participation Africa.

    “More than 450 organisations around the world are calling on world governments to do what they should have done from day one,” Jakpor said in a statement. “It’s time to kick Big Polluters out! No more writing the rules or bankrolling the climate talks.”

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  • Rivian seeks to cut costs while boosting EV production to meet 2022 targets

    Rivian seeks to cut costs while boosting EV production to meet 2022 targets

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    Rivian electric pickup trucks sit in a parking lot at a Rivian service center on May 09, 2022 in South San Francisco, California. 

    Justin Sullivan | Getty Images

    Electric vehicle maker Rivian Automotive on Wednesday reaffirmed its 25,000-vehicle production target for 2022, but said it plans to spend less to do it as the company reported third-quarter revenue that fell short of Wall Street’s expectations.

    Rivian cut its guidance for 2022 capital expenditures: It now expects its full-year capital expenditures to total about $1.75 billion, down from the $2 billion it guided to after the second quarter, as it shifts some planned spending to next year.

    The company still expects its full-year adjusted loss before income, taxes, depreciation and amortization to come in at $5.4 billion, in line with the guidance it gave in August.

    Shares of the company rose 7% in after-hours trading.

    Here are the key numbers from Rivian’s third-quarter earnings report, compared with average Wall Street analyst expectations as complied by Refinitiv:

    • Revenue: $536 million, versus $551.6 million expected.
    • Adjusted loss per share: $1.57, versus an expected loss of $1.82 per share.

    Rivian’s net loss for the third quarter was about $1.72 billion, a wider loss than the $1.23 billion it reported a year earlier.

    As of September 30, the company had about $13.8 billion in cash remaining, down from $15.5 billion as of June 30. Rivian said while inflation has been a factor in its supply chain, it’s taking steps to reduce costs and slow spending on future product. It reiterated that it’s “confident” its cash hoard will last through 2025.

    As part of its moves to slow spending, the company now expects to launch its upcoming smaller product platform, called R2, in 2026 rather than in 2025 as it had previously said. The R2 will be built in a new factory in Georgia.

    Rivian said it now has “over 114,000” preorders for its R1-series trucks and SUVs, up from about 98,000 preorders as of Aug. 11. Those totals don’t include the 100,000 electric delivery vans ordered by Amazon in 2020.

    Rivian said it’s added a second shift of workers at its Illinois factory, a key step toward boosting production volumes. It noted that the new workers are still coming online — but said that the second shift is already producing vehicles.

    Rivian said on Oct. 3 that it produced 7,363 vehicles in the third quarter and delivered 6,584 vehicles to customers during the period. Year to date, through the third quarter, Rivian produced 14,317 vehicles.

    The automaker also said Wednesday that with production volumes increasing, it has moved to shipping its vehicles by rail, rather than by truck. That change has reduced costs, but it also means that new vehicles may take more time to get to customers after being produced. Because of that lag, Rivian said, the gap between its quarterly production and delivery totals may increase going forward.

    This story is developing. Please check back for updates.

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  • UK’s first large-scale lithium refinery chooses location as race for ‘white gold’ intensifies

    UK’s first large-scale lithium refinery chooses location as race for ‘white gold’ intensifies

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    A lithium-ion battery photographed at a Volkswagen facility in Germany. Lithium-ion batteries are crucial components in electric vehicles.

    Jan Woitas | Picture Alliance | Getty Images

    LONDON — A facility described as the U.K.’s “first large-scale lithium refinery” will be located in the north of England, with those behind the project hoping its output will hit roughly 50,000 metric tons each year once up and running.

    On Monday, a statement released by Green Lithium on the website of the London Stock Exchange said construction of the £600 million (around $687 million) project was expected to last three years, with commissioning slated for 2025.

    The refinery will be based at Teesport, a major port on Teesside. Green Lithium said its product would “go into the supply chain for lithium-ion batteries, energy storage, grid stabilisation and EV batteries.”

    Alongside its use in cell phones, computers, tablets and a host of other gadgets synonymous with modern life, lithium — which some have dubbed “white gold” — is crucial to the batteries that power electric vehicles.

    The U.K. wants to stop the sale of new diesel and gasoline cars and vans by 2030. It will require, from 2035, all new cars and vans to have zero tailpipe emissions. The European Union, which the U.K. left on Jan. 31, 2020, is pursuing similar targets.

    Read more about electric vehicles from CNBC Pro

    With demand for lithium rising, European economies are attempting to shore up their own supplies and reduce dependency on other parts of the world.

    In a translation of her State of the Union speech last month, European Commission President Ursula von der Leyen said “lithium and rare earths will soon be more important than oil and gas.”

    As well as addressing security of supply, von der Leyen, who switched between several languages during her speech, also stressed the importance of processing.

    “Today, China controls the global processing industry,” she said. “Almost 90% … of rare earth[s] and 60% of lithium are processed in China.”

    “So we will identify strategic projects all along the supply chain, from extracting to refining, from processing to recycling,” she added. “And we will build up strategic reserves where supply is at risk.”

    Read more about energy from CNBC Pro

    Back in the U.K., Business Secretary Grant Shapps said Green Lithium’s refinery would “deliver more than 1,000 jobs during its construction and 250 long-term, high-skill jobs for local people when in operation.”

    “It is also allowing us to move quickly to secure our supply chains of critical minerals, as we know that geopolitical threats and global events beyond our control can severely impact the supply of key components that could delay the rollout of electric vehicles in the UK,” he added.

    The news about Green Lithium comes after Britishvolt, another firm looking to establish a foothold in the electric vehicle sector, said it had secured short-term funding that would enable it to stave off administration for the time being. The company said its employees had also agreed to a pay cut for November.

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  • KKR joins hands with decarbonisation platform Serentica Renewables to create new energy platform

    KKR joins hands with decarbonisation platform Serentica Renewables to create new energy platform

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    Global investment firm KKR and Vedanta Group’s arm Serentica Renewables have decided to create a new energy platform that would help large industrial clients decarbonise their businesses. The investment firm is expected to pump in a whopping $400 million in the platform.  Standard Chartered Bank will act as the sole financial advisor to Serentica for this transaction.

    Pratik Agarwal, Director of Serentica Renewables, said that the company is happy to have a like-minded strategic partner in KKR, which believes in its model of sustainable development. “This investment will allow us to leap ahead in our vision of decarbonizing large energy-intensive industries and help in reversing climate change.”

    Agarwal said  this transaction is among the largest industrial decarbonisation investments in India to date and carries forward the global decarbonization agenda, which is the focus at COP27.

    Serentica Renewables is wholly owned by Twinstar Overseas Limited (TSOL), which has controlling stakes in Sterlite Power Transmission Limited and Sterlite Technologies Limited. Both are held by Anil Agarwal family’s Volcan Investments.

    Hardik Shah, Partner at KKR, said that the investment in Serentica reflects KKR’s confidence in India’s renewable sector and its commitment to advancing the energy transition in India. “With Serentica, we look to support these companies in their decarbonisation objectives. We are delighted to back Serentica through this latest strategic partnership and are excited to develop Serentica into a leading decabonisation platform that can contribute meaningfully to the energy transition requirements that lie ahead of us.”

    An official statement said that since 2011, KKR has deployed over $15 billion in equity globally to invest in renewable assets, such as solar and wind, which have an operational power generation capacity of 23 GW, as of December 31, 2021.

    This is for the second time that KKR has teamed up with Sterlite Power Transmission. Earlier, it had invested in IndiGrid Investment Managers Ltd, an InvIT launched by Sterlite.

    Serentica currently has entered into three long-term PPAs and is in the process of developing 1,500 MW of solar and wind power projects across various states including Karnataka, Rajasthan, and Maharashtra. Serentica’s medium-term goal is to install 5,000 MW of carbon-free generation capacity coupled with different storage technologies and supply over 16 billion units of clean energy annually and displace 20 million tonnes of CO2 emissions.
     

    Also read: KKR invests $300 million in UPL’s Advanta Enterprises for a 13.33% stake

    Also read: As creator economy grows, this start-up helps creators monetise

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  • Greek PM: Gas exploration to start off Crete in coming days

    Greek PM: Gas exploration to start off Crete in coming days

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    ATHENS, Greece — Exxon Mobil is poised to start a delayed gas prospecting project off southwestern Greece, the country’s leader said Monday amid tensions between Greece and Turkey over offshore rights and as Europe seeks alternative energy sources due to the war in Ukraine.

    The U.S. energy giant will start seismic exploration “in the coming days” southwest of the southern Peloponnese peninsula and the island of Crete, Prime Minister Kyriakos Mitsotakis told private Antenna TV.

    The project has been heavily criticized by environmental groups, which argue that the deep-sea prospecting would have “unbearable” consequences on endangered Mediterranean whales and dolphins. Critics also highlight the potential risk of spills, and say the project, if successful, would increase Greece’s use of fossil fuels amid the planet’s climate change crisis.

    Mitsotakis insisted Monday that Greece remains dedicated to “fast green transition.” But he added: “Our country … must ascertain whether it currently has the ability to produce natural gas, which would contribute not only to our own energy security but also to that of Europe.”

    European countries are scrambling to replace their former dependency on Russian fossil fuels following Russia’s Feb. 24 invasion of Ukraine and the subsequent damaging of pipelines designed to bring natural gas from Russia to Germany.

    Meanwhile, Greece and Turkey are at loggerheads over offshore exploration rights in the eastern Mediterranean, and Turkish prospecting east of Crete in 2020 prompted a military build-up and bellicose rhetoric.

    In 2019, Greece granted rights for exploration — which, however, didn’t go ahead — in two blocks of seabed south and southwest of the island of Crete to a consortium of TotalEnergies and Exxon Mobil with Greece’s Hellenic Petroleum.

    The areas include the Mediterranean’s deepest waters. The Hellenic Trench, at 5,267 meters (17,300 feet) is a vital habitat for the sea’s few hundred sperm whales, and for other cetaceans already threatened by fishing, collisions with ships and plastic pollution.

    These mammals are particularly sensitive to the underwater noise produced by seismic surveys for fossil fuels, in which sound waves are bounced off the seabed to locate potential deposits. Sonar used by warships has been shown to have deadly effects on whales, and experts say seismic surveys can do the same.

    ———

    Follow all AP stories about climate change issues at https://apnews.com/hub/climate-and-environment.

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  • Hunger striker’s sister to push for his release in Egypt COP27

    Hunger striker’s sister to push for his release in Egypt COP27

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    The sister of Egyptian-British hunger striker Alaa Abd el-Fattah has landed in Sharm el-Sheikh to campaign for his release as British Prime Minister Rishi Sunak and other world leaders began the COP27 climate summit.

    “I’m here to do my best to try and shed light on my brother’s case and to save him,” said Sanaa Seif, Abd el-Fattah’s sister, after arriving in Sharm el-Sheikh in the early hours of Monday.

    “I’m really worried. I’m here to put pressure on all leaders coming, especially Prime Minister Rishi Sunak,” said Seif, who had recently been leading a sit-in outside the British Foreign Office in London.

    Sunak has said he will raise Abd el-Fattah’s case with Egypt’s leadership. Abd el-Fattah had informed his family that he would stop drinking water on Sunday in an escalation of his protest.

    The 40-year-old political activist rose to prominence with Egypt’s 2011 uprising but has been jailed for most of the period since. Sentenced most recently in December 2021 to five years on charges of spreading false news, he has been on hunger strike for 220 days against his detention and prison conditions.

    Egyptian officials have not responded to calls for comment on Abd el-Fattah’s case, but have said previously that he was receiving meals and was moved to a prison with better conditions earlier this year.

    Abd el-Fattah’s family said he was only consuming minimal calories and some fibre to sustain himself earlier in the year. After family visits in October, Seif said: “He looks very weak. He’s fading away slowly. He looks like a skeleton.”

    Some rights campaigners have criticised the decision to allow Egypt to host COP27, citing a long crackdown on political dissent in which rights groups say tens of thousands have been imprisoned and raising concern over access and space for protests at the talks.

    President Abdel Fattah el-Sisi has said security measures are needed to stabilise Egypt after the country’s 2011 revolution. Egypt is hoping to raise its diplomatic profile by hosting the United Nations climate talks.

    Low expectations

    More than 100 world leaders are preparing to discuss a worsening problem that climate scientists call Earth’s biggest challenge – greenhouse gas emissions – which leads to global warming.

    The climate events are being held amid multiple global crises surrounding food, energy and rising inflation, and expectations for  breakthroughs are seen to be low.

    Dozens of heads of states or governments will take the stage on Monday, the first day of “high-level” international climate talks, in Egypt, with more to come in the following days.

    “The fear is other priorities take precedence,” top UN climate change official Simon Stiell told a news conference.

    The “fear is that we lose another day, another week, another month, another year – because we can’t”, he said.

    In 2009, developed countries pledged to provide $100bn a year by 2020 for climate protection in poor countries. The pledge remained largely unfulfilled.

    Only 29 of 194 countries have presented improved climate plans, as called for at the UN talks in Glasgow last year, Stiell noted.

    French President Emmanuel Macron urged the United States, China and other non-European rich nations to “step up” their efforts to cut emissions and provide financial aid to other countries.

    “Europeans are paying,” Macron told French and African climate campaigners on the sidelines of COP27. “We are the only ones paying.”

    ‘Loss and damage’

    Fresh from his election victory, Brazil’s President Luiz Inacio Lula da Silva is expected to attend the summit later on, with hopes that he will protect the Amazon from deforestation after defeating climate-sceptic leader Jair Bolsonaro.

    Sunak, another new leader, reversed a decision not to attend the talks and is due to urge countries to move “further and faster” in transitioning away from fossil fuels.

    On Sunday, the heads of developing nations won a small victory when delegates agreed to put the controversial issue of money for “loss and damage” on the summit agenda.

    Pakistan, which chairs the powerful G77+China negotiating bloc of more than 130 developing nations, has made the issue a priority.

    “We definitely regard this as a success for the parties,” said Egypt’s Sameh Shoukry, who is chairing COP27.

    The US and the European Union have dragged their feet on the issue for years, fearing it would create an open-ended reparations framework.

    But European Commission Vice President Frans Timmermans welcomed the inclusion of loss and damage, tweeting that the “climate crisis has impacts beyond what vulnerable countries can shoulder alone”.

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  • Drought tests resilience of Spain’s olive groves and farmers

    Drought tests resilience of Spain’s olive groves and farmers

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    QUESADA, Spain — An extremely hot, dry summer that shrank reservoirs and sparked forest fires is now threatening the heartiest of Spain‘s staple crops: the olives that make the European country the world’s leading producer and exporter of the tiny green fruits that are pressed into golden oil.

    Industry experts and authorities predict Spain’s fall olive harvest will be nearly half the size of last year’s, another casualty of global weather shifts caused by climate change.

    “I am 57 years old and I have never seen a year like this one,” farmer Juan Antonio Delgado said as he walked past his rows of olive trees in the southeast town of Quesada. “My intention is to hang on as long as I can, but when the costs rise above what I make from production we will all be out of a job.”

    High temperatures in May killed many of the blossoms on the olive trees in Spanish orchards. The ones that survived produced fruits that were small and thin because of not enough water. A little less moisture can actually yield better olive oil, but the recent drought is proving too much for them.

    This year has been the third-driest in Spain since records were started in 1964. The Mediterranean country also had its hottest summer on record.

    Spain’s 350,000 olive farmers typically harvest their crops in early October, ahead of their full ripeness, in order to produce the olive oil. But with his olives still too puny to pick, Delgado left most of the fruit on his trees, hoping for rain. So far, no luck.

    If the wished-for rain doesn’t arrive soon, the country will produce nearly half as many olives as it did last year, according to Spain’s agriculture minister.

    “Our forecast for this harvest season is notoriously low,” Agriculture Minister Luis Planas told The Associated Press. “The ministry predicts that it won’t even reach 800,000 tonnes (882,000 U.S. tons),” compared with 1.47 million tonnes (1.62 million U.S. tons) in 2021.

    Olive trees cover 2.7 million hectares (6.8 million acres) of Spain’s soil, with a full 37% of them found in Jaén province, which is known for its “sea of olives” and where Delgado farms.

    On average, Spain grows more than three times as many olives as Italy and Greece, which also are seeing smaller yields.

    Olive oil production in the European Union as a whole is forecast to fall drastically compared with last year, according to the Committee of Professional Agricultural Organizations and the General Confederation of Agricultural Cooperatives,

    The European farming organizations, known by the acronyms COPA and COGECA, warned in September that the yield could drop by 35% due to drought and high temperatures. The two groups called the situation in Spain “particularly worrying.”

    The smaller harvest is driving up prices, according to Italian olive oil producer Filippo Berio. The company said the price of European olives for extra virgin oil has soared from 500 euros per tonne ($495) to 4,985 euros ($4,938) per tonne.

    Along with warmer than usual weather, the drought is affecting Spanish olives in other ways. Farming method consultant Antonio Bernal is witnessing the return of long-forgotten diseases during his visits to Quesada. He believes that milder winters are helping fungi to proliferate.

    Bernal also fears that the most widespread variety of olive cultivated in Jaén won’t be able to adapt to such a quickly changing climate.

    “The solution is to stop climate change: Olive groves cannot adapt at a pace to assume such a fast change,” Bernal said.

    Besides the olive branch being the universal symbol of peace, the olive is a symbol of the Mediterranean. Plato was said to have dispensed his wisdom under an olive tree and the olive’s widespread cultivation in Spain goes back to the Romans.

    When it got too dry for orange and lemon trees, olive trees were counted on to continue thriving. The short, gnarly trees cling to dry, rocky ground and seem not to mind when the sun comes pounding down. Under torrid midday conditions, microscopic pores on their leaves close to reduce water loss.

    “For Jaén, the olive has been our culture, our way of subsisting and feeding our families,” said olive farmer Manuel García.

    Yet even the hearty olive has limits. These days, the fruit represents the challenges communities face in a hotter, dryer world.

    Researcher Virginia Hernández is an olive expert based at the Institute of Natural Resources and Agrobiology in Seville, Spain. She is studying how to adapt irrigation practices to drought, specifically the point at which “sub-optimum” quantities of water can be used to promote sustainability.

    With less rain likely to become a norm, using water sparingly is critical, Hernández said. She thinks a more intelligent use of high-tech irrigation systems combined with more drought-resistant varieties of trees could save the industry as the planet warms.

    According to climate experts, the Mediterranean is expected to be one of the fastest warming regions of the world in the coming years. The trick is convincing farmers that reducing their output some today might save their livelihoods tomorrow, the kind of adaptability at which olives are particularly adept, Hernández said.

    “The truth is that the olive is the paradigmatic species when it comes to resisting a lack of water,” she said. “I can’t think of another that can hold up like the olive. … It knows how to suffer.”

    ———

    Joseph Wilson reported from Barcelona, Spain. Photojournalist Bernat Armangue and videojournalist Iain Sullivan contributed from Quesada.

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    Follow AP’s coverage of the climate and environment: https://apnews.com/hub/climate-and-environment

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  • Pakistan Floods: A Climate Change Message

    Pakistan Floods: A Climate Change Message

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    Video Duration 04 minutes 35 seconds

    From: Between Us

    “The scale of the crisis is so massive.”

    Pakistan is suffering after devastating floods submerged one-third of the country. As the COP27 global climate change conference gets under way, Al Jazeera’s Zein Basravi asks whether leaders are willing to commit to meaningful solutions.

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  • Climate Questions: Who is most vulnerable to climate change?

    Climate Questions: Who is most vulnerable to climate change?

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    Most of the world’s population has been affected in some way by climate change — 85% of the world, in fact. But the effects of climate change haven’t been equally felt by all. Some communities have seen a slight rise in temperature here and there, but others have had their entire communities wiped out.

    As the rise of global temperatures and sea-level continues to affect the world with increasingly frequency and intensity, who are the most vulnerable to the effects of climate change?

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    EDITOR’S NOTE: This story is part of an ongoing series answering some of the most fundamental questions around climate change, the science behind it, the effects of a warming planet and how the world is addressing it.

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    The answer is clear, according to climate scientists, climate and environmental justice experts and international research efforts on the question. The Intergovernmental Panel on Climate Change found in a 2022 report that vulnerability to climate change is “exacerbated by inequity and marginalization linked to gender, ethnicity, low income or combinations thereof.”

    “(The) poor, ethnic minorities, and women are very clearly the most vulnerable to the impacts of climate change that we are already seeing today: heat waves; displacement and smoke due to fires; and price shocks due to supply chain interruptions, higher energy prices,” Daniel Kammen, a professor of energy at the University of California, Berkeley and a coordinating lead author on IPCC reports, told The Associated Press.

    These populations are the most vulnerable to the effects of climate change because of racism, sexism and pursuit of profits over protection of people, according to Bineshi Albert, co-executive director of the Climate Justice Alliance.

    “Due to the continued search for profits by our current economic system and (by) the fossil fuel industry in particular, there are entire neighborhoods that are deemed worthy of becoming sacrifice zones, and this breaks down every time around race, class, and national lines,” she said.

    Research also shows that disabled people are more vulnerable to effects of climate change than abled bodied people.

    The increased vulnerability to climate change experienced by these populations and who is to blame for causing these inequities have become increasing topics of conversation at the international level. Debate about loss and damage — the climate harm caused by some nations to others, how much and what should be done about it — has waged on since at least COP23.

    A study published in July 2022 found that richer nations like the U.S. caused climate harm to poorer countries.

    In terms of repairing damage already caused to vulnerable populations and countries and helping them become less vulnerable, experts told the AP that it starts with including them in developing policies.

    “A natural start is to develop policies to target these underserved communities with enhanced attention and support,” Kammen said.

    Albert said it should go a step further with direct economic investments in communities most vulnerable to climate change.

    “Economic resources should go directly to those on the frontlines of the climate crisis to develop and implement their own community-led solutions,” she said. “Communities rather than profits must be the motive if we are truly going to solve the climate crisis.”

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    Follow Drew Costley on Twitter: @drewcostley.

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    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • Macron welcomes French questions on climate ahead of COP27

    Macron welcomes French questions on climate ahead of COP27

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    PARIS — French President Emmanuel Macron released a selfie video on social media platforms Saturday asking the public to send him questions about what France should do about climate change and biodiversity.

    Thousands of responses quickly poured in. Several were hostile or questioned his sincerity, but they also included rigorous questions about fossil fuel subsidies, sea pollution and nuclear energy.

    Macron, who will take part in the U.N. climate talks opening in Egypt on Sunday, promised to respond to the questions starting next week.

    In the video, he read from a letter from the public asking why he doesn’t declare an “environmental state of emergency.” He said the letter “prompted me to ask questions about what we are doing about this ecological challenge, the challenge of our generation.”

    Early in his presidency, Macron pledged to make tackling climate change issues a top priority, but he has come under widespread criticism for not instituting enough tangible change.

    At the COP27 talks in Egypt on Monday, Macron is expected to discuss climate-related financing, protecting forests, Africa’s Great Green Wall, and other climate adaptation measures, according to his office.

    He’s also expected to raise the importance — and challenge — of sticking to climate commitments as Europe faces an energy crisis stemming from Russia’s war in Ukraine.

    Those are all key issues at the climate talks at the Red Sea coastal resort of Sharm el-Sheikh, which are expected to include more than 120 world leaders and run from Nov. 6-18.

    Laurent Fabius, the French diplomat who presided over the U.N. talks in 2015 that produced the Paris climate agreement, made a plea Saturday to those gathering in Egypt: “Keep in mind that the most beautiful announcements mean nothing if they’re not backed up by precise and rapid policies and actions.”

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    Follow AP’s climate and environment coverage at https://apnews.com/hub/climate-and-environment

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