2024-12-26 20:43
NEW YORK, Dec 26 (Reuters) - New York state will fine fossil fuel companies a total of $75 billion over the next 25 years to pay for damage caused to the climate under a bill Governor Kathy Hochul signed into law on Thursday. The law is intended to shift some of the recovery and adaptation costs of climate change from individual taxpayers to oil, gas and coal companies that the law says are liable. The money raised will be spent on mitigating the impacts of climate change, including adapting roads, transit, water and sewage systems, buildings and other infrastructure. "New York has fired a shot that will be heard round the world: The companies most responsible for the climate crisis will be held accountable," New York Senator Liz Krueger, a Democrat who co-sponsored the bill, said in a statement. Fossil fuel companies will be fined based on the amount of greenhouse gases they released into the atmosphere between 2000 and 2018, to be paid into a Climate Superfund beginning in 2028. It will apply to any company that the New York Department of Environmental Conservation determines is responsible for more than 1 billion tons of global greenhouse gas emissions. New York becomes the second state to pass such a law after Vermont passed its own version this summer. The laws are modeled after existing state and federal superfund laws that require polluters to pay to clean up toxic waste. Repairing damage and adapting for extreme weather caused by climate change will cost New York more than $500 billion by 2050, Krueger said in her statement. Major oil companies made more than $1 trillion in profits since January 2021 and have known since at least the 1970s that the extraction and burning of fossil fuels contribute to climate change, she said. Energy companies are expected to file legal challenges to the new law, arguing that it is preempted by federal law regulating energy companies and polluters. Sign up here. https://www.reuters.com/sustainability/new-york-fine-fossil-fuel-companies-75-billion-under-new-climate-law-2024-12-26/
2024-12-26 19:39
US dollar hits five-month high against Japanese yen Jobless claims fall to lowest in a month Fed expected to cut rates by 38 bps next year NEW YORK, Dec 26 (Reuters) - The U.S. dollar hit a five-month high against the Japanese yen on Thursday on expectations the greenback would be boosted next year by policies by the incoming Donald Trump administration that are expected to boost growth and lift inflation. Trading volumes were light on Thursday with many traders on holiday after Wednesday’s Christmas holiday and before next week’s New Year holiday. Looser business regulations and tax cuts are expected to help propel U.S. growth next year while analysts say that a clamp-down on illegal immigration and the prospect of new tariffs on trading partners could increase price pressures, and weigh on the economy longer term. That has boosted the dollar against its peers, though there remains a lot of uncertainty over exactly what policies will be introduced and what their impact will be. Rising doubts over how many interest rate cuts the Federal Reserve will be able to undertake next year has added to the dollar rally in the past few weeks. The U.S. central bank last week cut rates by 25 basis points as expected and Fed Chair Jerome Powell said more reductions in borrowing costs now hinge on further progress in lowering stubbornly high inflation. Fed policymakers raised their inflation projections for 2025 and cut their interest rate forecast to 50 basis points for the year, from 100 basis points. Money market traders are currently pricing in 38 basis points of cuts next year, implying they see a roughly 50% chance that the Fed will make a second 25 basis point reduction. Data on Thursday showed that the number of Americans filing new applications for jobless benefits dipped to the lowest in a month last week, consistent with a cooling but still-healthy U.S. labor market. U.S. retail sales also rose 3.8% between Nov. 1 and Dec. 24, as intense promotion to drum up sales in what was expected to be a highly competitive holiday season for retailers prompted last-minute shopping among consumers. The dollar index was last up 0.02% at 108.13. It is holding just below a two-year high of 108.54 reached on Friday. The euro rose 0.13% to $1.0418. The single currency fell to $1.03435 on Friday, the lowest since Nov. 22. The greenback gained 0.35% to 157.93 Japanese yen and earlier reached 158.09, the highest since July 17. The Japanese yen has suffered from the wide interest rate differential between the United States and Japan. The Bank of Japan expects the economy to move closer to sustainably achieving the central bank's 2% inflation target next year, Governor Kazuo Ueda said on Wednesday, suggesting the timing of its next interest rate increase was nearing. In cryptocurrencies bitcoin fell 2.88% to $95,598. Sign up here. https://www.reuters.com/markets/currencies/dollar-edges-up-bets-us-growth-inflation-2024-12-26/
2024-12-26 18:20
LIMA, Dec 26 (Reuters) - Peru's government on Thursday declared an environmental emergency in a northern coastal area, where state oil firm Petroperu last weekend spilled a crude oil shipment into surrounding waters of the Pacific Ocean. A vessel carrying out pre-shipment maneuvers caused the spill on Saturday at a terminal of Peru's Talara refinery in northern Peru. Petroperu has not said how much crude was spilled into the sea, but Peru's environmental watchdog OEFA said in a preliminary report it has affected some 10,000 square meters of surface seawater, and the environment ministry said it has affected at least seven beaches, as well as local wildlife. Peru's environment ministry said the 90-day emergency aims to "guarantee the sustainable management of the area and the execution of recovery and remediation works to mitigate environmental contamination." Petroperu said on Wednesday it had deployed clean-up brigades from the moment of the spill and coordinated with the fishermen's union and local authorities so that local economic and tourist activities could continue normally. Petroperu said in a statement that it maintains cleaning personnel, boats and drones in the affected area to "carry out preventive monitoring to guarantee the early detection of any eventuality." Local authorities have said the spill has damaged coastal plants and animals such as crabs, while fishermen say the spill has stopped them from working. "We have not been able to go out for six days now," fisherman Martin Pasos told local radio RPP. "It is chaos, what happened in Lobitos. So far, we have not had any response from the oil company." Sign up here. https://www.reuters.com/business/environment/peru-declares-environmental-emergency-after-oil-spill-2024-12-26/
2024-12-26 18:05
NEW DELHI, Dec 26 (Reuters) - India's Bharat Petroleum Corp (BPCL.NS) , opens new tab plans to invest $11 billion in southern Andhra Pradesh state for a new refinery and petrochemical project to meet rising fuel demand in the world's fastest-growing major economy, its chairman said. India wants to emerge as a major refining hub supplying fuel to the global markets as Western companies are cutting crude processing capacities in favour of energy transition. "We feel there is a big opportunity in refining sector. India's primary energy demand itself is also going to increase three to four times as its economy expands," G. Krishnakumar told Reuters in an interview. India aspires to be a developed nation by 2047 with its GDP rising to $30 trillion from the current $3.8 trillion. BPCL has started pre-project work including land purchase to build at least a 9 million metric ton per year (tpy) refinery and ethylene cracker in Andhra Pradesh, he said. The project will have a 35% petrochemical intensity and could cost 900 billion-950 billion rupees ($10.56 billion-$11.14 billion). The company operates three refineries in India with combined capacity of 35.3 million tpy. It also buys fuels from a 3 million tpy Numaligarh refinery in the northeast. Krishnakumar said about 80% output from the proposed Andhra complex will be sold in southern India that houses petchem developers and automobile makers. Indian refiners are raising petrochemical productions as the nation's per capita consumption is set to rise with increased manufacturing. BPCL is also exploring setting up a refinery in a joint venture with state-run exploration company Oil and Natural Gas Corp (ONGC.NS) , opens new tab in northern Uttar Pradesh state, while pushing for clean energy goals, he said. Refining expansion will help BPCL cut its dependence on fuel purchases from other companies, as it buys a fifth of 50 million tpy of refined fuels sold through its retails stations. Krishnakumar said BPCL will aggressively bid for renewable projects tendered by the government and could acquire companies to meet its target of 10 Gigawatts clean energy projects by 2035. It has announced a joint venture with Sembcorp (SEMB.NS) , opens new tab to expand its renewable energy portfolio of 300 megawatts. Krishnakumar hoped that the operations at the $20 billion Mozambique liquefied natural gas (LNG) project, led by France's TotalEnergies (TTEF.PA) , opens new tab, would start in the first quarter of 2025 with monetisation of gas in 2028-29. BPCL along with other Indian companies hold 30% stake in Mozambique project. ($1 = 85.2540 Indian rupees) Sign up here. https://www.reuters.com/markets/commodities/bpcl-plans-11-bln-refinery-proj-south-india-2024-12-26/
2024-12-26 17:22
MOSCOW, Dec 26 (Reuters) - President Vladimir Putin said on Thursday there was no time left this year to sign a new Ukrainian gas transit deal, and laid the blame firmly on Ukraine for refusing to extend the agreement that brings gas to Slovakia, the Czech Republic and Austria. "They announced that they would not renew the contract," Putin said, adding that Kyiv was punishing Europe by the move. The current five-year gas transit deal between Russia and Ukraine expires in the end of the year. "There is no contract and it is impossible to conclude it in 3-4 days," Putin said in a televised briefing. Russian gas supplies to Europe via Ukraine are relatively small. Russia shipped about 15 billion cubic metres (bcm) of gas via Ukraine in 2023 - only 8% of peak Russian gas flows to Europe via various routes in 2018-19. The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings gas from Siberia via the town of Sudzha - which is now under control of Ukrainian military forces - in Russia's Kursk region. It then flows through Ukraine to Slovakia. In Slovakia, the gas pipeline splits into branches going to the Czech Republic and Austria. Russia is ready to supply gas via Ukraine to any customer but he said a lawsuit was making that impossible, Putin said. Putin also reiterated Russia was ready to supply gas to Europe via Poland through the Yamal - Europe pipeline. Sign up here. https://www.reuters.com/world/europe/putin-says-there-is-no-time-sign-new-ukraine-gas-transit-deal-this-year-2024-12-26/
2024-12-26 11:56
Dec 26 (Reuters) - India's economy is expected to grow at around 6.5% in fiscal year 2024/25, closer to the lower end of its 6.5%-7% projection, as global uncertainties pose a dampening threat, the government said on Thursday. The growth outlook for October to December appears bright, with rural demand remaining resilient and urban demand picking up in the first two months of the quarter, according to the finance ministry's monthly economic report for November. Growth slowed more than expected in July to September, hampered by weaker expansion in manufacturing and consumption. India has maintained that its economy will grow at a world-beating pace of 6.5%-7% despite a challenging environment. The outlook is expected to be better in October-to-March than in the first six months of the financial year, it said. "The combination of monetary policy stance and macroprudential measures by the central bank may have contributed to the demand slowdown," the report said. India's central bank has kept interest rates unchanged for 11 straight policy meetings, despite calls for rate cuts to support growth amid high inflation. For the next financial year starting April 1, 2026, the report said, newer risks have emerged, such as uncertain global trade growth and a stronger U.S. dollar. U.S. President-elect Donald Trump has threatened many nations, including India, with higher tariffs on imports, raising risks of a global trade war after he takes office on Jan. 20. Trump's election victory has also fuelled a run-up in the dollar and U.S. yields. However, India’s growth outlook in 2025/26 and coming years is bright in terms of domestic economic fundamentals, the finance ministry's report said. Sign up here. https://www.reuters.com/world/india/indian-economy-grow-around-65-fy25-government-says-2024-12-26/
