2023-12-02 03:29

DUBAI, Dec 1 (Reuters) - United Nations Secretary-General Antonio Guterres told world leaders on Friday that the burning of fossil fuels must be stopped outright and a reduction or abatement in their use would not be enough to stop global warming. "We cannot save a burning planet with a fire hose of fossil fuels," Guterres said in a speech to the COP28 summit in Dubai. "The 1.5-degree limit is only possible if we ultimately stop burning all fossil fuels. Not reduce. Not abate." He urged fossil fuel companies to invest in a transition to renewable energy sources and told governments to help by forcing that change - including through the use of windfall taxes on industry profits. "I urge governments to help industry make the right choice – by regulating, legislating, putting a fair price on carbon, ending fossil fuel subsidies, and adopting a windfall tax on profits," he said. https://www.reuters.com/business/environment/un-chief-says-ending-fossil-fuel-use-is-only-way-save-burning-planet-2023-12-01/

2023-12-02 03:05

COP 'side deals' have boomed in recent years Voluntary climate pledges yield mixed results Some have led to tougher CO2-cutting policies DUBAI, Dec 2 (Reuters) - While the world's climate diplomats huddle over draft decisions to be made at the end of this year's U.N. climate summit, governments at COP28 are firing off a flurry of new promises for action. Among the expected pledges at COP28 are a goal to triple renewable energy capacity and initiatives on methane and coal power. These voluntary side deals have proliferated in recent years, even as global temperatures and greenhouse gas emissions continue to rise. Unlike official summit decisions, which must be passed by consensus among the nearly 200 countries, voluntary pledges can be made quickly, and boldly, without the worry of one party objecting. "They go much further than what you can do multilaterally," said Marc Vanheukelen, a former EU official who led the bloc's work on an international methane emissions pledge launched at the COP26 climate summit in 2021. Analysis of some of the COP pledges backed by substantial groups of countries or funders suggests they did lead to stronger action to curb climate change. Others have struggled - with experts warning that if unfulfilled, COP side deals risk undermining trust in the core U.N. climate negotiations. "Often, these are exercises in what you could call 'fire and forget'," said Vanheukelen. Countries will fire off a statement of support, but then "you don't watch anymore what is happening to it". Here is how some of the biggest voluntary pledges from recent years are faring today: GLOBAL METHANE PLEDGE Among the side deals announced at the COP26 climate summit in Glasgow in 2021, the U.S. and EU led more than 100 countries in committing to cutting methane emissions 30% by 2030. Methane is responsible for around 30% of human-caused global warming since the industrial revolution. A potent greenhouse gas, it leaches into the atmosphere from leaky oil and gas infrastructure, livestock burps and manure, and landfill sites. Supporters credit the Global Methane Pledge with raising the profile of the potent greenhouse gas, which governments including the EU, Nigeria and Canada have since introduced or strengthened regulation of. The U.S. and China have also made methane a topic of shared efforts, although China and other major emitters including Russia have not backed the pledge. Groups tracking the pledge say it's too early to gauge success by emissions levels, as policies passed since 2021 would take a few years to kick in. Methane emissions from the oil and gas industry increased slightly last year alongside rising fuel production. "It's now about the actions that are being teed up. It's about the finance systems that are being created," said Jonathan Banks, Global Director on Methane at the non-profit Clean Air Task Force, pointing to funding announcements expected at COP28. Reuters previously reported the World Bank is expected during the summit to new launch a fund, with backing from oil companies among others, to finance methane leak detection and cleanup programs in developing countries. FOSSIL FUEL FINANCE More than 30 governments including the U.S. and Canada committed at COP26 to stop financing international fossil fuel projects by the end of 2022 - the first international political deal to halt overseas oil and gas finance. By end-2022, Canada, Britain, France and others had national policies in place to meet this goal, according to campaign group Oil Change International (OCI), estimating that the moves altogether have shifted some $5.7 billion away from fossil fuel projects toward clean energy. "This initiative has done relatively well and has demonstrated real world progress," said OCI campaign manager Laurie van der Burg. "For many countries, they only started working on this after they joined the pledge." Still, some countries blew past the deadline and continue to fund fossil fuels overseas, including the United States, Italy and Germany. The three altogether have put more than $4 billion into fossil fuels overseas since 2022, amid the Western drive to replace Russian gas, OCI said. HALTING DEFORESTATION More than 140 governments - representing the vast majority of the world's forests - pledged at COP26 to end deforestation by 2030, underpinned by $19 billion in funding commitments. The year after, in 2022, deforestation increased by 4% worldwide, according to a coalition of environmental organizations including WWF, The Rainforest Alliance and Climate Focus. "It's definitely not showing signs right now that it will succeed," said Erin Matson of Climate Focus, which advises governments and companies on emissions-cutting policies. While Brazil has slashed deforestation in 2023, that trend came only after President Luiz Inácio Lula da Silva took office this year. "The problem with these voluntary declarations is you don't nail out the nitty gritty in order to really get people to abide by it," Matson said, referring to details such as how progress might be measured. ___ For daily comprehensive coverage on COP28 in your inbox, sign up for the Reuters Sustainable Switch newsletter here. https://www.reuters.com/world/cop28-lines-up-new-climate-pledges-do-they-work-2023-12-02/

2023-12-02 01:37

SAN FRANCISCO, Dec 1 (Reuters) - Tesla's (TSLA.O) pricier-than-expected Cybertruck pickup, which offers driving ranges that fell well short of what CEO Elon Musk had promised, has deeply disappointed some but fascinated others with its futuristic, SUV-like feel. The Cybertruck, two years behind schedule, enters a hot pickup truck market to compete with the likes of Ford's (F.N) F150 Lightning, Rivian Automotive's (RIVN.O) R1T and General Motors' (GM.N) Hummer EV. Reddit co-founder Alexis Ohanian, who was among the first dozen customers to pick up the vehicle on Thursday, said the Cybertruck drives and feels like Tesla's Model X sport utility vehicle. "Initial feeling about this vehicle - smooth, drives a lot like my Model X. It is big but not unwieldy," Ohanian said as he live-streamed his first drive of the Cybertruck on social media platform X. He said he'd be the "coolest dad" picking up his kid at school. Starting at $60,990, the Cybertruck is over 50% more expensive than what CEO Elon Musk had touted in 2019. That may narrow the appeal of the vehicle. Tesla's stock is down over 2% since before the launch. Among those disappointed is Texas-based financial services executive Christian Cook, who had booked a Cybertruck in 2019 after Musk promised a cheaper pickup that travels farther on a single charge. "The truck pricing and range is a huge let down," Cook, who drives a Model 3 and told Reuters he had made certain financial decisions based on his plans to buy a Cybertruck. "My respect for Musk has taken a huge hit. My loyalty to Tesla has taken a huge hit." CFRA analyst Garrett Nelson said the steep price tag will lead to customers cancelling reservations and expects Tesla to adjust the pricing based on demand going ahead. The Cybertruck, made of shiny, bullet-proof stainless steel and inspired from a car-turned-submarine from a James Bond movie, is likely to uplift Tesla's brand that has been dented from steep price cuts to boost demand, according to analysts and branding experts. "The Cybertruck gets a lot of attention. It brings Tesla back top of mind," said Spencer Imel, a partner at consumer insights firm Langston. "But we don't see it helping Tesla gain ground in terms of becoming a mass market brand and competing with brands like Ford that are serving the everyday car buyer," he said. Indeed, the electric pickup's price and longer wait time for significant financial payoff left analysts concerned. Musk's personal ability to build the Tesla brand has also been questioned this week after a live interview in which he cursed out advertisers who left his X social media platform, formerly known as Twitter, over antisemitic material. That was creating nervousness among investors and some consumers and could be drag on Tesla's appeal, said Allen Adamson, co-founder of brand and marketing consultancy Metaforce. "Many of Tesla's early adopters who bought into the dream of a sustainable future are being kind of rudely woken up," by some of the "strange things" he has done, turning him from a "rebel" into a "misguided person" for some people, said JP Kuehlwein, an adjunct professor of marketing at Columbia University Business School. Cybertruck will not do much for Tesla's financials next year, analysts said. Bernstein forecast 250 deliveries this year and 75,000 for next year, saying both "may be ambitious". Musk has said Tesla was likely to reach a production rate of roughly 250,000 Cybertrucks a year in 2025. The company has repeatedly warned that it would face significant challenges in ramping the product and becoming free cash flow positive - likely not until mid-2025 - which could negatively impact profitability. A brand refresh will be critical for Tesla, especially at a time when the company is battling softening electric-vehicle demand as well as rising competition. "Tesla has a product problem - i.e., an older line-up that does not address enough of the market, and has no new mass market offerings until likely late 2025," Bernstein analysts added. https://www.reuters.com/business/autos-transportation/tesla-falls-long-wait-cybertruck-payoff-hefty-price-tag-2023-12-01/

2023-12-02 00:47

Dec 1 (Reuters) - The chief executive of Canadian miner First Quantum said he would have to look into how the company could sustain its finances in the long term, given Panama's push to annul operations at its local copper mine, the miner's biggest revenue source. "We have strong finances in the short and medium term, but yes, we have to see how we sustain them in the long term," Tristan Pascall said in an interview with Panamanian newspaper La Prensa published on Friday, when asked about the risk of bankruptcy for the company if Panama operations end. The company has notified buyers it will not be able to meet agreements due to force majeure, Pascall added. Panama's top court issued a ruling deeming First Quantum's contract with the government to operate a key copper mine unconstitutional. President Laurentino Cortizo moved to close the mine hours later. "The court's ruling leaves a lot of questions," Pascall said in the interview, while vowing to keep open dialogue with Panamanian authorities to find solutions for the future of the project. The Canadian miner said on Friday it has initiated arbitration against Panama, with Pascall noting the company still does not know the amount it will be asking from the country during the process. https://www.reuters.com/markets/commodities/first-quantum-ceo-long-term-sustainability-uncertain-if-panama-operations-end-2023-12-02/

2023-12-02 00:46

Dec 1 (Reuters) - Ride-hailing service Uber Technologies will join the S&P 500 (.SPX) effective at the open of trading on Dec. 18, along with S&P MidCap 400 (.IDX) constituents Jabil Inc and Builders FirstSource Inc , S&P Dow Jones Indices announced late Friday. The stocks will replace Sealed Air Corp , Alaska Air Group Inc and SolarEdge Technologies Inc in the benchmark S&P 500, joining the S&P MidCap 400 index as of Monday. (This story has been refiled to correct the date to Dec. 18, not Monday, in paragraph 1) https://www.reuters.com/business/autos-transportation/uber-become-sp-500-constituent-sp-indexes-2023-12-02/

2023-12-02 00:10

LONDON, Dec 2 (Reuters) - A digital pound should not be available in large sums initially to avoid the risk of bank runs, British lawmakers said in a report on Saturday that also highlighted the need to safeguard cash and user privacy. The Bank of England and finance ministry have said an electronic form of the pound is likely in the second half of the decade, as 130 countries consider similar moves to keep abreast of technological advances in payments. But lawmakers on the Treasury Select Committee said in their report that while a digital pound might bring benefits in terms of boosting innovation, the BoE and Treasury should keep an open mind on whether it is actually needed, given the costs involved. "It must be clearly evidenced that a retail digital pound will provide benefits to the UK economy without increasing risks or leading to unmanageable costs before any decision is taken to introduce it into our financial system," committee chair Harriett Baldwin said. People and businesses could use a digital pound to make payments, with the BoE suggesting a limit of up to 20,000 pounds for digital wallets provided by banks, far higher than the 3,000 euros discussed by the European Central Bank for a digital euro. The committee's "The digital pound: still a solution in search of a problem?" report said there should be a smaller limit initially to mitigate a bank run triggered by a switch in large amounts of deposits into digital wallets in times of market turmoil - and risk bumping up the cost of loans. The prospect of a digital pound, now in the design phase, has raised concerns that it would allow authorities to spy on how people spend and that it could spell the end of cash. "We recommend that any primary legislation used to introduce a digital pound does not allow the Government or Bank of England to use the data from a digital pound for any purposes beyond those already permitted for law enforcement," the report said. The BoE has said interest should not be payable on digital pound deposits, but the committee said this position should be reviewed. The Treasury and the BoE said in a joint statement that they would formally respond to the committee's report in due course and would set out the next steps in a consultation paper. "We have always been clear a digital pound would only ever be introduced alongside cash, and that protecting individual privacy is paramount in any design," they said. https://www.reuters.com/markets/currencies/britain-yet-make-case-digital-pound-lawmakers-say-2023-12-02/