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Bonn climate talks leave mountain to climb for Belem

  • Market: Coal, Crude oil, Electricity, Emissions, Natural gas
  • 27/06/25

Deepening divisions between developed and developing countries promise to make Cop 30 an arduous summit, writes Rhys Talbot

Progress in technical discussions at the UN climate conference in Bonn, Germany, still leaves much work for the incoming Brazilian presidency ahead of November's Cop 30 summit in Belem if it is to deliver a strong outcome on emission cuts.

After a rocky start in Bonn this month, with a two-day fight over the agenda, negotiators delivered texts across a number of areas relating to emission reductions. The Brazilian Cop takes place 10 years after the Paris agreement, in which states agreed to limit global warming to well below 2°C and preferably 1.5°C, and two years after Cop 28 in Dubai, when they undertook the global stocktake (GST) to measure progress on reaching Paris goals and pledged to phase out fossil fuels.

The annual Bonn talks are intended to allow negotiators to prepare the ground for political decisions to be made at Cop. But this year, even those discussions that have advanced well have tended to produce large texts with many mutually exclusive options in brackets, reflecting incompatible positions that will have to be worked out by policy makers between now and the end of the Belem Cop.

The main arena for considering fossil fuels, a discussion of the meaning of the GST, has left a heavily divided text to Belem. Developed countries have argued for a longer, more extensive process, while some parties — including China, India and Saudi Arabia — have tried to limit the scope, duration and outputs of the sessions. And the texts do not directly address the elephant in the room — countries are this year delivering their nationally determined contribution (NDC) documents laying out their plans to cut emissions.

Those plans are likely to be insufficient to limit global warming to 1.5°C. And the Brazilian presidency will have to grasp the initiative to find a way to ensure advances on the Paris and Dubai goals. The leader's summit to be held immediately before Cop could offer a chance for movement. The release of a keenly awaited synthesis report of NDCs on 24 October could offer a spur to this summit. "People will want a reaction from our leaders" when the report comes out, Cop 30 executive director Ana Toni said.

But Brazil rejects the idea of a cover decision at the end of Belem as a home for discussion of fossil fuels. And the presidency has been reluctant to attack fossil fuels head on. "This is not an item of negotiation, the GST is," Toni said. Brazil must wrangle a fractious conference including major fossil fuel producers such as India, Saudi Arabia and Russia which resist any action on the topic, as well as facing criticism over its own plans to increase oil and gas production.

Climate finance fight

Climate finance permeated the Bonn talks, with developing countries trying to steer various work programmes towards the issue, while developed countries attempted to limit discussion. Developing countries said the finance settlement reached last year at Baku does not meet developed countries' obligations under the Paris agreement, as well as being far short of actual needs.

And in parallel, they expressed their frustration with carbon border adjust mechanism (CBAM)-type arrangements planned for the EU and UK, and projected for Canada. Developed countries see these as essential to protecting their domestic industry and preventing carbon leakage, given their high carbon costs, but developing countries say the costs will fall mostly on them.

These two issues appear likely to crop up again as stumbling blocks at Belem that the presidency will have to tackle with political engagement beforehand. Brazil has promoted Cop 30 as an "implementation" Cop, with no one particular agenda item dominating. This gives the country the arduous task of having to make concrete progress on many items, rather than focus on one headline target.


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10/07/25

Brazil eyes retaliatory tariffs on US

Brazil eyes retaliatory tariffs on US

Rio de Janeiro, 10 July (Argus) — Brazil will consider reciprocal tariffs if US president Donald Trump goes ahead with his threat of a 50pc charge on imports from Brazil, president Luiz Inacio Lula da Silva said. "Any unilateral tariff increases will be addressed in accordance with Brazil's economic reciprocity law," Lula posted on social media late on Wednesday. He defended Brazil's sovereignty and said the country "will not accept any form of tutelage". He rebutted Trump's claim that the US has a "very unfair trade relationship with Brazil", pointing to its long-running trade surplus. Brazil has run a trade deficit for goods and services with the US adding up to over $400bn over the last 15 years, finance minister Fernando Haddad said in a televised interview. "This is an eminently political decision, because there is no economic rationale in this measure," he said. The US is Brazil's second-largest trading partner behind China, receiving $40.3bn worth of exports in 2024, according to the Brazilian secretary of foreign trade. It is the main market for Brazilian manufactured goods. The national confederation of industries (CNI), a lobby group, called for negotiations with the Trump government "to preserve the countries' historical trade relationship". A group representing the powerful agribusiness lobby in congress, FPA, also called for diplomatic negotiations. The tariffs can "severely hamper production, investments and supply chains between the two countries," US-Brazilian chamber of commerce Amcham said. The tariffs bring uncertainty to the country's oil and gas sector, Brazil's oil chamber IBP said. Crude is Brazil's main export to the US, accounting for $5.8bn last year. "We are cautiously assessing the true impacts on investments and competitiveness on our industry," IBP said. The Brazilian real slumped against the US dollar in the wake of Trump's announcement, dropping to R5.6/$1 on Thursday morning before rallying slightly. A weaker real increases production costs for Brazilian companies who rely on imports. A letter that Trump sent on Wednesday to Lula is one of the 22 that the US leader has sent to his foreign counterparts since 7 July, announcing new tariff rates that the US will charge on imports from those countries. "I don't think that this situation will continue," Haddad said of the "unsustainable" 50pc levy, highlighting Brazil's diplomatic tradition. By Constance Malleret Send comments and request more information at [email protected] Copyright © 2025. Argus Media group . All rights reserved.

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Q&A: Titan on the future of LNG and bio-LNG bunkering


10/07/25
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10/07/25

Q&A: Titan on the future of LNG and bio-LNG bunkering

London, 10 July (Argus) — Titan is a leading supplier of LNG and bio-LNG as a bunker fuel, mostly supplying volumes in northwest Europe. Argus spoke to Titan's commercial director, Michael Schaap, about the future of LNG and bio-LNG bunkering. How has the demand for LNG as a marine fuel evolved over the past year, and what factors are driving this growth besides FuelEU Maritime? Demand for LNG as a marine fuel has grown significantly over the past year, driven not only by regulatory developments like FuelEU Maritime but also by the growth of the LNG dual-fuel fleet. According to DNV's Alternative Fuels Insights platform, 642 LNG-powered vessels are currently in operation, excluding LNG carriers. Of these, 169 were delivered in 2024, setting a record. The growth in demand is expected to continue — 264 new orders for LNG-fuelled vessels were placed in 2024, also a record and more than double the number of orders placed in 2023. Essentially, the total addressable market for LNG pathway fuels in 2028 will be enormous. The LNG pathway uses LNG (and its established infrastructure), bio-LNG and e-methane (derived from renewable hydrogen). All of these fuels can be blended at any ratio and ‘dropped into' infrastructure and vessels with little to no modification required. It is increasingly recognised as a practical route to take the shipping industry to net zero greenhouse gas emissions. What are the current challenges in scaling LNG bunkering infrastructure to meet the needs of the growing fleet of LNG dual-fuel vessels? A key challenge is ensuring timely investment in bunkering infrastructure to keep pace with the growing number of LNG-fuelled vessels. Take LNG bunkering vessels, for example. According to the DNV, about 64 LNG bunkering vessels are in operation worldwide today, with a further 16 on order. While this far exceeds other alternative fuels, continued investment and expansion will be important. To maintain safe, timely and efficient LNG deliveries that meet demand, it is also important to maintain a suitable number of LNG loading slots. The increased demand for LNG and bio-LNG could alter the dynamics between buyers and sellers in the market. The spot market may become more challenging and expensive for shipowners and operators going forwards. As a result, those that can plan should book capacity well in advance and sign long-term offtake agreements. A good balance of pre-booked business also allows suppliers to reinvest in infrastructure such as bunkering vessels, shifting the market back towards the buyers. Where is Titan looking to expand — beyond northwest Europe? Titan supplies and bunkers LNG and increasingly bio-LNG around the world, partnering with local companies to support if needed. Titan's base, the Zara (Zeebrugge, Amsterdam, Rotterdam, Antwerp) region, is a key hub for LNG, bio-LNG and in the future, e-methane bunkering, and this is not expected to change. Having said this, the Mediterranean is recognised as a key strategic market for expansion. The Mediterranean became an Emission Control Area (ECA) on 1 May, so we expect this to escalate the need for LNG and bio-LNG in the region. Compared with heavy fuel oil, LNG pathway fuels can reduce nitrogen oxide emissions by up to 80pc and almost eliminate sulphur oxide and particulate matter emissions, offering ECA compliance. How is Titan positioning itself to meet the expected boom in bio-LNG demand growth over the coming years and decades? Titan is leading the way in supplying bio-LNG. We have been bunkering nearly all of [Norwegian shipping line] UECC's LNG-powered car carriers with bio-LNG since mid-2024, offering over-compliance with FuelEU Maritime, which presents financial rewards through pooling or banking. The partnership has now been extended through 2025. In 2024, we completed the world's largest ship-to-ship bio-LNG bunkering. We bunkered 2,200t of mass balanced bio-LNG to a Hapag-Lloyd containership in Rotterdam. The bio-LNG was ISSC-certified and recognised under the EU's Renewable Energy Directive known as Red II, marking a major milestone in the clean marine fuels transition. Going forwards, we hope to continue pioneering bio-LNG bunkering across more ports, and we feel it is important for us to further scale our bio-LNG offering as customers increasingly look to focus on regulatory compliance. We will also continue to closely monitor demand and supply signals for other clean marine fuels and will implement them into our portfolio as necessary. What do you see as the main challenges to bio-LNG growth, both in Europe and globally? High production costs remain a challenge for bio-LNG, but processes such as mass balancing are helping to lower supply-side costs. Mass balancing is a system in which biomethane is injected into the gas network and transported to liquefaction plants and LNG terminals using the existing infrastructure. It is expected to feature on many alternative fuel pathways and is a practical way of delivering clean molecules. The best analogy is when domestic energy companies provide consumers with renewable energy in a very similar way. Co-ordinated and consistent public-sector support for biomethane production will also support continued growth in the sector. The EU REPowerEU plan has ambitious biomethane usage targets of 35bn m³ by 2030. In 2023, the EU produced 22bn m³ of biogas, with biomethane being a key component. There is still plenty of work to do. Public-sector support is not only in the interest of end-users, but also of governments. This is because bio-LNG provides energy security, reducing dependency on any other nation's gas supplies. Bio-LNG can be produced locally, anywhere where waste feedstocks are available. At a time of geopolitical instability, the independence and resilience that lots of smaller suppliers can offer is a powerful incentive to invest. Gas prices have been very volatile since the start of this decade. Do you see this as a limiting factor to LNG and bio-LNG bunkering growth? While price fluctuations are a consideration, they do not fundamentally limit growth. LNG and bio-LNG remain cost-competitive compared with other alternative fuels. As LNG and bio-LNG are produced differently, factors that affect the price of one will not necessarily affect the other. To mitigate against market volatility, building in optionality is key. Shipowners and operators have this through their dual-fuel engines, switching to fuel oil if needed. Our bunkering assets are similarly flexible. Using our specialist skill set, we are also open to delivering any fuel that can substantially decarbonise shipping, which will further diversify our operations and build resilience. By Martin Senior and Natalia Coelho Send comments and request more information at [email protected] Copyright © 2025. Argus Media group . All rights reserved.

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Brazil eyes retaliatory tariffs on US


10/07/25
News
10/07/25

Brazil eyes retaliatory tariffs on US

Rio de Janeiro, 10 July (Argus) — Brazil will consider reciprocal tariffs if US president Donald Trump goes ahead with his threat of a 50pc charge on imports from Brazil, its president Luiz Inacio Lula da Silva said. "Any unilateral tariff increases will be addressed in accordance with Brazil's economic reciprocity law," Lula posted on social media late on Wednesday. He defended Brazil's sovereignty and said the country "will not accept any form of tutelage". He rebutted Trump's claim that the US has a "very unfair trade relationship with Brazil", pointing to its long-running trade surplus. The US is Brazil's second-largest trading partner behind China, receiving $40.3bn worth of exports in 2024, according to the Brazilian secretary of foreign trade. It is the main market for Brazilian manufactured goods. The national confederation of industries (CNI), a lobby group, called for negotiations with the Trump government "to preserve the countries' historical trade relationship". A group representing the powerful agribusiness lobby in congress, FPA, also called for diplomatic negotiations. A letter that Trump sent on Wednesday to Lula is one of the 22 that the US leader has sent to his foreign counterparts since 7 July, announcing new tariff rates that the US will charge on imports from those countries. By Constance Malleret Send comments and request more information at [email protected] Copyright © 2025. Argus Media group . All rights reserved.

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Opec sees oil demand rising to 123mn b/d by 2050


10/07/25
News
10/07/25

Opec sees oil demand rising to 123mn b/d by 2050

London, 10 July (Argus) — Opec has raised its long-term oil demand forecast by nearly 3mn b/d, driven by stronger growth in India and the Middle East and a shifting policy landscape that it says is reinforcing fossil fuels' role in the global energy mix. "There is no peak oil demand on the horizon," Opec secretary-general Haitham al-Ghais said in the group's latest World Oil Outlook (WOO), repeating a line he used in last year's edition and underscoring Opec's ongoing rejection of forecasts that see oil use peaking before 2030. Opec argues that such forecasts underestimate demand growth in developing economies and overstate the pace of the energy transition. The 2025 WOO lifts Opec's 2050 oil demand projection to 122.9mn b/d, from 120.1mn b/d in last year's WOO. Its 2040 forecast is revised up to 120mn b/d from 117.8mn b/d. The 2030 outlook is unchanged at 113.3mn b/d, but the group sees a steeper rise in demand in the later years of the forecast. While the overall trajectory remains consistent with last year's WOO, the new report places greater emphasis on policy recalibration in major economies. It highlights growing political resistance to decarbonisation targets — particularly in the US and parts of Europe — and said energy affordability and supply security are increasingly shaping national strategies. These shifts, Opec suggests, are slowing the pace of energy transitions and supporting continued oil demand growth. The 2025 WOO adopts a more cautious tone on electrification, citing infrastructure and cost challenges, and acknowledges the geopolitical effect of the US' second withdrawal from the Paris climate agreement — a development not covered in last year's edition. India leads the pack India makes the biggest single contribution to the long-term demand increase. Opec forecasts the country's oil use to more than double from 2024, to 13.7mn b/d by 2050. Demand in China, on the other hand, rises in the medium term but flattens after 2035, reflecting slower economic growth and rising electric vehicle uptake. OECD demand is projected by Opec to edge up to 46.6mn b/d by 2030 — from 45.7mn b/d in 2024 — before entering a steady decline. By 2050, it is put at 37.2mn b/d, led by sharp reductions in Europe's transport and residential sectors. The sectoral breakdown remains broadly unchanged from last year. Road transport, petrochemicals and aviation account for most of the demand growth between 2025 and 2050. Oil use in road transport is forecast to rise by 5.3mn b/d, aviation by 4.2mn b/d and petrochemicals by 4.7mn b/d. Supply to match demand On the supply side, Opec projects global liquids output at 113.6mn b/d by 2030 and 123mn b/d by 2050. It still expects US production to peak at just over 23mn b/d around 2030, before falling to 19.6mn b/d by mid-century. Non-Opec+ supply is seen plateauing in the 2030s, with Opec+ producers expected to meet most of the incremental demand, lifting their share of global supply to 52pc by 2050 from 48pc in 2024. Opec estimates $18.2 trillion of investment will be needed to meet oil demand through to 2050, up from $17.4 trillion in the 2024 report. Of the total, $14.9 trillion — more than 80pc — is allocated to upstream. The group reiterated that underinvestment could threaten future supply security and market stability. The report notes refining capacity is expected to keep pace with long-term demand growth, but warns of a potential short-term tightening later this decade as the rise in oil demand outpaces new capacity — particularly in Asia-Pacific. By James Keates Send comments and request more information at [email protected] Copyright © 2025. Argus Media group . All rights reserved.

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Workers strike at Australian coal mine: Correction


10/07/25
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10/07/25

Workers strike at Australian coal mine: Correction

Corrects mine lock-out start date in paragraph 3 Sydney, 10 July (Argus) — Mining and Energy Union (MEU) workers at US producer Peabody Energy's Metropolitan mine in New South Wales are striking over an ongoing pay dispute, halting production until 5pm AEST (7am GMT) on 10 July. MEU launched a five-hour stoppage at 5pm on 9 July, before extending it to 12 hours. The unionised workers launched another 12-hour strike early on 10 July, the union told Argus on the same day. Peabody locked miners out of the mixed thermal, hard coking, and pulverised coal injection (PCI) mine from 18 June until 5:30pm on 9 July, without pay, over an increasingly acrimonious employment negotiation. MEU and Peabody negotiators are at odds over the use of contractors at Metropolitan, among other issues. They met for Fair Work Commission-led mediation during the lock-out on 8 July. Metropolitan Coal remains fully committed to ongoing good faith negotiations with the union, a Peabody spokesperson told Argus on 10 July. The MEU's latest strike comes a day after unionised workers at global producer Glencore's 20mn t/yr Ulan thermal coal mine launched a day-long strike, targeting some underground operations at the complex. The Ulan strike is set to end on 10 July. By Avinash Govind Send comments and request more information at [email protected] Copyright © 2025. Argus Media group . All rights reserved.

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