2024-04-10 18:50
April 10 (Reuters) - Canada risks another "catastrophic" wildfire season, the federal government said on Wednesday, as it forecasted higher-than-normal spring and summer temperatures across much of the country, boosted by El Nino weather conditions. Last year Canada endured its worst-ever fire season, with more than 6,600 blazes burning 15 million hectares, an area roughly seven times the annual average. Eight firefighters died and 230,000 people were evacuated from their homes. This winter the country experienced warmer-than-normal temperatures and widespread drought, setting the stage for another punishing summer. "The temperature trends are very concerning. With the heat and dryness across the country we can expect that the wildfire season will start sooner and end later and potentially be more explosive," Harjit Sajjan, the minister for emergency preparedness, told a press conference. Federal ministers warned climate change was contributing to more extreme weather events, including wildfires, drought and heat waves. "Wildfires have always occurred across Canada, what's new is their frequency and their intensity," said Jonathan Wilkinson, the minister for energy and natural resources. "The science is clear. The root cause of this is climate change." Ottawa is providing C$256 million ($187.15 million) over five years, a sum matched by the country's provinces and territories, to fund new equipment and has also committed to training an extra 1,000 community-based wildfire firefighters. Last year Canada deployed 5,500 international firefighters from countries including South Africa and Spain and 2,135 armed forces members to help tackle the blazes. Severe weather, including wildfires, caused over C$3.1 billion in insured damages in 2023, according to a government analysis. The government of British Columbia warned in a separate update that the westernmost province's snowpack - an accumulation of snow that melts seasonally - is averaging its lowest level since 1970, measuring 63% of normal versus 88% of normal at the same time last year. "Typically drought and wildfire go hand in hand," said Jonathan Boyd, a hydrologist at the province's River Forecast Centre. "It's not setting up to be a great season but it still depends on what the weather conditions are (this spring)." ($1 = 1.3679 Canadian dollars) The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/americas/canada-may-face-another-catastrophic-wildfire-season-government-says-2024-04-10/
2024-04-10 18:17
Science Based Targets initiative to change policy To allow offsets to be used for Scope 3 emissions Receives mixed response from NGOs, stakeholders LONDON, April 10 (Reuters) - Staff at the Science Based Targets initiative (SBTi) on Wednesday called for the ouster of the global nonprofit's chief executive and the reversal of a plan to allow companies to use carbon credits to offset greenhouse gas emissions from their value chain. The staff accused SBTi's leadership of acting without a sound scientific basis, throwing the group - whose role as the leading arbiter of how companies set climate targets exerts heavy influence over much of the corporate world - into turmoil. In a letter to the SBTi's board of trustees and CEO seen by Reuters, the staff criticised a decision made a day earlier to allow the use of offsets for so-called Scope 3 emissions, subject to undefined "guardrails and thresholds." Selling credits from wind farms and other activities to a company so it can offset pollution is seen as a way to help move money to climate-friendly projects. Some critics worry this could let companies off the hook when it comes to reducing emissions, and the SBTi had previously rejected the use of such offsets. "As staff representing SBTi on a daily basis, we demand immediate action to mitigate the grave reputational damage caused by the actions of the Board," the letter said. Beyond the CEO's resignation, the letter also called for board members who supported the policy shift on offsets to resign. It also asked for a withdrawal of the new policy. Signed by staff from "the Target Validation Team, Target Operations Team, the Technical Department, Communications, Impact and IT, and multiple department heads", the group said it stood ready to take "further action," without elaborating. Members of the board could not immediately be reached for comment after normal business hours. The turnaround had earlier sparked anger among members of the SBTi's technical advisory group, which was meant to have a say on such issues but which was left blindsided by the news. "None of us were informed. It just came out of the blue," said Stephan Singer, senior adviser at the nonprofit Climate Action Network, who said he had resigned over the issue. Another, Doreen Stabinksy, professor of global environmental politics at College of the Atlantic, called the posting of the move on the SBTi website "a major shock" that left staff "reeling." She added: "This isn't a science-based decision." Proponents of the move, including some companies, say many find it difficult to align their plans with the world's climate goals amid weak government action, still-nascent technical fixes and high costs. Letting them use offsets would secure market and investor support for more ambitious action, helping reduce their cost of capital and driving more money into climate-friendly projects, they added. "The voice of business on this issue is clear," said María Mendiluce, chief executive of the We Mean Business Coalition and a board trustee of SBTi, which by end-2022 had validated New Tab, opens new tab 2,079 company targets. A further 2,151 firms had committed to set targets. "Companies value SBTi and are committed to delivering on their emissions reductions targets, but need greater clarity and flexibility in how to navigate Scope 3 emissions. This change empowers companies to bring more innovation and investment into cutting emissions from their value chains." SBTi said it acknowledged the complexity of the issue and would "consult and strive to reach the necessary cooperation agreements with other relevant initiatives as well as a broader set of stakeholders." The decision by SBTi brings it into line with a move by the Voluntary Carbon Markets Initiative New Tab, opens new tab to expand the use of high-quality carbon credits, and carbon trading association IETA, which plans to launch new guidelines on quality credits. It follows a slide in demand for credits from companies during 2023 - down 6% in the first half, data from BloombergNEF showed - after several cut credit purchases amid concern about the quality of certain projects. Worth around $2 billion in 2021, the market could pass $50 billion by 2030, Boston Consulting Group has said New Tab, opens new tab. Teresa Hartmann, chief ratings officer at BeZero Carbon, which rates carbon credits, said SBTi's move was "a significant step forward in scaling carbon markets and climate action ... within the critical next decade". The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/sustainability/companies-get-green-light-use-offsets-supply-chain-emissions-2024-04-10/
2024-04-10 18:08
April 10 (Reuters) - U.S. oil major Chevron's (CVX.N) New Tab, opens new tab CEO Michael Wirth was paid $26.5 million in 2023, a 12.2% boost from the prior year and above the median pay raise for employees, a securities filing showed on Wednesday. The numbers show an increased gap between compensation for executives and Chevron's 45,511 workers. The median annual compensation for Chevron employees in the U.S. and abroad last year rose 8.7% to $175,673. In 2022, the medium compensation for workers had dropped 12% to $161,488, while Wirth's pay had increased 4%. Chevron's proposed $53 billion acquisition of oil producer Hess (HES.N) New Tab, opens new tab counted positively to Wirth's compensation, with the board saying it strengths the company’s portfolio. The deal is pending regulatory approval and being questioned by rival Exxon Mobil(XOM.N) New Tab, opens new tab in an arbitration procedure. Chevron's proxy statement did not provide further comments on the proposed acquisition. Chevron said Wirth delivered Chevron’s key financial priorities, which largely focus on increasing shareholder returns and paying debt. Chevron distributed a record $26.3 billion to shareholders in dividends and buybacks in 2023, up 18% from the prior year. Mark Nelson, the second-highest paid executive, was promoted to vice chair last year and got a 61.5% increase to $12.2 million last year. The figures do not represent the actual realizable compensation as it includes equity-based awards - the value of which is not known until options are exercised or stock is sold. Chevron last year underperformed its peers with its shares dropping 15% to $149. The CEO’s non-equity incentive plan compensation dropped 42% to $2.6 million, with Wirth being punished for cost and schedule slippage on Chevron's major project in Kazakhstan and capital expenditures overruns in the U.S. Permian Basin. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/chevron-ceos-pay-rose-12-265-million-2023-2024-04-10/
2024-04-10 16:56
April 10 (Reuters) - Short sellers betting against MicroStrategy (MSTR.O) New Tab, opens new tab have lost $1.92 billion since March, according to data from S3 Partners, highlighting the hit from a rally that has helped the stock outperform bitcoin . The approval of several spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) in January has brought the once-nascent asset class closer to the mainstream. Traders betting against crypto exchange Coinbase (COIN.O) New Tab, opens new tab and bitcoin miner CleanSpark (CLSK.O) New Tab, opens new tab also lost $593.50 million and $106.40 million, respectively, the data showed. MicroStrategy held nearly 190,000 bitcoin on its balance sheet as of the end of 2023 and has indicated it would continue increasing its exposure. It sold convertible debt twice within a week last month to raise money to buy more bitcoin. "The premium (for MicroStrategy) is supported by a desire for investors to have exposure to bitcoin who may be unable to invest directly in bitcoin or in ETFs," analysts at BTIG said in a note earlier in April. The company's ability to raise capital to purchase additional bitcoin is also a positive for shareholders, the brokerage added. But despite the recent optimism, the crypto industry continues to be heavily shorted. Short interest in nine of the most-watched companies in the crypto space stood at 16.73% of the total number of their outstanding shares, more than three times the average in the United States. The SEC also remains uncomfortable with crypto and its approval of the spot bitcoin ETFs might not signal willingness to embrace other similar products, like spot ethereum ETFs, Reuters has reported. The spot bitcoin ETF decision was not "indicative of a change in philosophy at the Commission," said Alan Konevsky, chief legal and corporate affairs officer at online investment platform tZERO. "I don't think it's a harbinger of more good things to come," he said. Short sellers sell borrowed shares and hope to buy them back at a lower price later, pocketing the difference. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/microstrategy-leads-crypto-sector-short-losses-with-2-bln-hit-since-march-2024-04-10/
2024-04-10 16:08
LONDON, April 10 (Reuters) - The European Bank for Reconstruction and Development (EBRD) posted a profit of 2.1 billion euro ($2.26 billion) for 2023, it said in a statement on Wednesday. The gain, led by a 1 billion euro return on equity investments, offset a 1.1 billion euro loss in the prior year following Russia's invasion of Ukraine. "With global challenges such as the climate crisis, macroeconomic uncertainties and geopolitical tensions growing more and more acute, the EBRD has the capacity to accelerate its support for clients and countries of operations," EBRD Chief Financial Officer Soha El-Turky said in a statement. CONTEXT The bank said in January that its 2023 investments reached a record 13.1 billion euros, with half of total financing related to the green economy. In 2023, its board approved a 4 billion-euro capital increase that it said would enable the bank to double its Ukraine investments once reconstruction begins, and also began the process of expanding membership to Sub-Saharan countries including Ghana, Senegal and Ivory Coast. WHY IT'S IMPORTANT EBRD is one of the top lenders to Ukraine's private sector, and is also a key source of much-needed affordable finance for energy transition, infrastructure and other development projects from Poland to Turkey. The financing it can provide is particularly crucial after the global interest rate-hiking cycle boosted private borrowing costs for most borrowers. ($1 = 0.9310 euro) Get a look at the day ahead in European and global markets with the Morning Bid Europe newsletter. Sign up here. https://www.reuters.com/markets/europe/ebrd-returns-black-posts-21-billion-euro-profit-2023-2024-04-10/
2024-04-10 15:02
HARARE, April 10 (Reuters) - Zimbabwean informal traders are refusing to accept the local dollar for fear it will be worthless in a few weeks, when the government's new gold-backed currency enters circulation at the end of April. The Southern African country is replacing its collapsing Zimbabwean dollar with the new currency - called Zimbabwe Gold (ZiG) - in the hopes that it will be more stable and help bring down inflation. Wary of the country's third attempt at a new currency in a decade, traders mainly in the cash-driven informal sector are opting to transact in U.S. dollar. "Fresh produce farmers are refusing Zimdollar. They fear that the money may be worthless by the time ZiG comes," said Marceline Mupotaringa, a vendor in Mt Pleasant Heights, 15 km north of Harare. "I had a box full of Zimdollar ...which is now worthless." The central bank said on Wednesday it had noted public concerns on the rejection of the Zimdollar by some traders. "Business entities where the notes have been widely used, including commuter omnibuses, shops, fresh vegetable markets, and vendors, are advised to continue accepting payment in ZW$ notes until April 30, 2024," the central bank said in a statement. Brian Muchemwa, a fresh produce trader in Harare, said the Zimdollar had lost considerable value after the introduction of ZiG. "We were accepting Zimdollar until last Friday. It is now selling at 40,000 to $1 which does not make business sense, hence we started accepting U.S. dollar only," Muchemwa said. The Zimdollar was trading at 28,720 to the greenback prior to the introduction of ZiG. The development has seen an increase in demand for the U.S. dollar on the black market, to the delight of some currency traders. "Consumers are bringing their Zimdollar here in exchange for the U.S. dollar, but we have spiked rates to take advantage of the demand," a black market forex trader told Reuters. While larger supermarkets have started displaying prices in ZiG, retailers such as Zimbabwe's OK and South Africa's Pick n Pay were still accepting the Zimdollar. "There is no big retailer that has rejected Zimdollar, that is done by the informal sector," said OK CEO Max Karombo. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/zimbabwe-informal-traders-ditch-worthless-zimdollar-before-new-currency-debuts-2024-04-10/
