May 17 (Reuters)&nbsp;&#8211;&nbsp;Worsening outdoor air pollution and toxic lead poisoning have kept global deaths from environmental contamination at an estimated 9 million per year since 2015 – countering modest progress made in tackling pollution elsewhere, a team of scientists reported Tuesday.



Air pollution from industry processes along with urbanization drove a 7% increase in pollution-related deaths from 2015 to 2019, according to the&nbsp;<a href="http://www.thelancet.com/journals/lan???/article/PII???????????????/fulltext" target="_blank" rel="noreferrer noopener">scientists’ analysis of data</a>&nbsp;on global mortality and pollution levels.



&#8220;We&#8217;re sitting in the stew pot and slowly burning,&#8221; said Richard Fuller, a study co-author and head of the global nonprofit Pure Earth. But unlike climate change, malaria, or HIV, &#8220;we haven&#8217;t given (environmental pollution) much focus.&#8221;



An earlier version of the work published in 2017 also estimated the death toll from pollution at roughly 9 million per year — or about one of every six deaths worldwide — and the cost to the global economy at up to $4.6 trillion per year. That puts pollution on par with smoking in terms of global deaths.&nbsp;COVID-19, by comparison, has killed about&nbsp;6.7 million&nbsp;people globally since the pandemic began.



For their most recent study, published in the online journal Lancet Planetary Health, the authors analyzed 2019 data from the Global Burden of Disease, an ongoing study by the University of Washington that assesses overall pollution exposure and calculates mortality risk.



The new analysis looks more specifically at the causes of pollution – separating traditional contaminants such as indoor smoke or sewage from more modern pollutants, like industrial air pollution and toxic chemicals. Here are some of the key takeaways:



WATER AND INDOOR AIR



Deaths from traditional pollutants are declining globally. But they remain a major problem in Africa and some other developing countries. Tainted water and soil and dirty indoor air put Chad, the Central African Republic and Niger as the three countries with the most pollution-related deaths, according to data adjusted for population.



State programs to cut indoor air pollution and improvements in sanitation have helped to curb death tolls in some places. In Ethiopia and Nigeria, these efforts brought related deaths to drop by two-thirds between 2000 and 2019. Meanwhile, the Indian government in 2016 began offering to replace wood-burning stoves with gas stove connections.



MODERN POLLUTANTS



Deaths caused by exposure to modern pollutants such as heavy metals, agrochemicals and fossil fuel emissions are &#8220;just skyrocketing&#8221;, rising 66% since 2000, said co-author Rachael Kupka, executive director of the New York-based Global Alliance on Health and Pollution.



When it comes to outdoor air pollution, some major capital cities have seen some success, including in Bangkok, China, and Mexico City, the authors said. But in smaller cities, pollution levels continue to climb.



HIGHEST POLLUTION-RELATED DEATHS



The study offered a list of the 10 countries most affected by pollution-related deaths, based on their findings on mortality adjusted for population.



1. Chad; 2. Central African Republic; 3. Niger; 4. Solomon Islands; 5. Somalia; 6. South Africa; 7. North Korea; 8. Lesotho; 9. Bulgaria; 10. Burkina Faso



(Reporting by Gloria Dickie; Editing by Katy Daigle and Lisa Shumaker)

power-station-pollution-energy-electricity

Pollution killing 9 million people a year, Africa hardest hit – study

May 10 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s government is still analysing details of a $8.5 billion financing package offered by rich Western nations last year to help the country shift away from coal, environment minister Barbara Creecy said on Tuesday.



The United States, Britain, France, Germany and the European Union pledged the funding during the COP26 climate conference in Glasgow, Scotland, last November. South Africa is the world&#8217;s 12th biggest emitter of climate-warming gases and a major coal producer and user.



Pressed by lawmakers over delays in obtaining the funding during a virtual parliamentary briefing, Creecy said South Africa, which has set up a task team to advise President Cyril Ramaphosa and his cabinet on the offer, was still looking at the terms.



&#8220;I think that the issue of speed is important, but the issue of the nuances and the quality of the decision is also important,&#8221; Creecy said.



&#8220;I am not negative about the opportunities that this money presents, but I am realistic that we have to look at it properly and we shouldn&#8217;t rush when looking at it properly. There is a lot of scepticism out there that it&#8217;s only loan financing, that it&#8217;s going to worsen our sovereign debt situation.&#8221;



South Africa&#8217;s chief negotiator at COP26, Maesela Kekana, told the same briefing that negotiations were still being held with the Western nations.



Creecy said South Africa was also considering the impact of the shift from coal on unemployment and poverty.



About 93,000 people were employed in South Africa&#8217;s coal mines in 2021, according to industry body the Minerals Council.



&#8220;We&#8217;ve got to ensure that by introducing green technology into the economy, we&#8217;re not just changing technology, we&#8217;re also dealing with some of the abiding constraints of inequality, unemployment and poverty that confront our economy,&#8221; Creecy said.



(Reporting by Nelson BanyaEditing by Alexander Winning, William Maclean)

S.Africa says still interrogating $8.5 bln climate deal with rich nations

<figure class="wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex">
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" data-id="416877" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/05/KZN-Floods_Flickr52003672603_c6c56c8529_b-1-820x547.jpg" alt="" class="wp-image-416877" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/05/KZN-Floods_Flickr52003672603_c6c56c8529_b-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/05/KZN-Floods_Flickr52003672603_c6c56c8529_b-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/05/KZN-Floods_Flickr52003672603_c6c56c8529_b-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/05/KZN-Floods_Flickr52003672603_c6c56c8529_b-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/05/KZN-Floods_Flickr52003672603_c6c56c8529_b-1.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>
<figcaption class="blocks-gallery-caption">Flood stricken KwaZulu-Natal in South Africa.</figcaption></figure>



<ul class="wp-block-list"><li>South Africa is recovering from the biggest natural disaster to hit the country in recent history.</li><li>The country is proactively responding to climate change through adaptation-focused regulation and green energy investments.</li><li>A just transition that protects both lives and livelihoods is the best strategy for South Africa.</li></ul>



In April 2022, heavy rains, flooding, and subsequent mudslides hit the KwaZulu-Natal coast in South Africa. While efforts are underway to establish the extent of the damage, hundreds of lives have been lost, with many more still missing. When visiting the disaster-struck areas around the city of Durban, South Africa’s president, Cyril Ramaphosa, shared his perspective on what lay behind the country’s worst natural disaster on record: “We no longer can postpone what we need to do – we must deal with climate change.”



The impact of the disaster&nbsp;<a href="https://reliefweb.int/disaster/fl-2022-000201-zaf" target="_blank" rel="noreferrer noopener">was not equally felt</a>. South Africa is the world’s&nbsp;<a href="https://www.dailymaverick.co.za/article/2022-03-13-south-africa-the-worlds-most-unequal-country-world-bank-report/" target="_blank" rel="noreferrer noopener">most unequal country</a>, and it was in the poorer regions where the consequences of the extreme weather were most severe. This impact visualises the plea of many African nations: Poor communities contribute the least to global pollution but are suffering the most.



<h2 class="wp-block-heading" id="adaptation-through-climate-law">Adaptation through climate law</h2>



Disasters such as these can mark a national conscience and drive forward the urgency to act. South Africans are, given the country’s unique history, people of civil action. In the wake of the disaster, thousands of volunteers are assisting in relief efforts, while&nbsp;<a href="https://www.aljazeera.com/news/2022/4/15/s-africa-climate-justice-orgs-file-criminal-complaints-agai-govt#:~:text=Johannesburg%2C%20South%20Africa%20%E2%80%93%20A%20group,action%20to%20address%20the%20climate" target="_blank" rel="noreferrer noopener">climate justice</a>&nbsp;movements are calling on the government to take practical action to address the climate crisis. These public calls aren’t falling on deaf ears, with the nation’s parliament currently deliberating a&nbsp;<a href="https://www.parliament.gov.za/bill/2300773" target="_blank" rel="noreferrer noopener">Climate Change Bill</a>. If enacted, this law will place a legal obligation on all local and provincial governments to undertake climate change needs assessments, followed by climate change response implementation plans. These climate change response plans must, as a next step, be integrated into all existing social development plans.



The bill provides for adaptation objectives for the country. These objectives are specific green targets that the government must reach within stringent timeframes. The bill also provides for carbon taxes on heavy polluters and sectoral carbon budgets. Environment minister,&nbsp;<a href="https://www.foodformzansi.co.za/at-last-climate-change-bill-reaches-parliament/" target="_blank" rel="noreferrer noopener">Barbara Creecy</a>, has called the bill “a dream come true” and that it brings all the country’s efforts to deal with climate change under one piece of legislation. Creecy has emphasized that “Sub-Saharan Africa is one of the regions of the world that is most vulnerable to climat



<h2 class="wp-block-heading" id="a-just-transition">A just transition</h2>



One of the results of COP26 was the launch of the&nbsp;<a href="https://www.g7uk.org/wp-content/uploads/2021/12/ANNEX-TO-G7-LEADERS-STATEMENT-PARTNERSHIP-FOR-INFRASTRUCTURE-AND-INVESTMENT-FINAL-3-DECEMBER.pdf" target="_blank" rel="noreferrer noopener">Just Energy Transition Partnership</a>&nbsp;(JETP). This partnership between South Africa, France, Germany, the UK, and the USA, aims to support South Africa’s&nbsp;<a href="https://www.thepresidency.gov.za/press-statements/south-africa-establishes-historic-international-partnership-support-just-transition#:~:text=President%20Cyril%20Ramaphosa%20has%20today,and%20a%20climate%20resilient%20society" target="_blank" rel="noreferrer noopener">just transition</a>&nbsp;to a low carbon economy and climate-resilient society. As Africa’s most industrialized nation and the&nbsp;<a href="https://www.worldometers.info/coal/south-africa-coal/#:~:text=Coal%20Production%20in%20South%20Africa&amp;text=South%20Africa%20produces%20277%2C951%2C564%20tons,ranking%207th%20in%20the%20world." target="_blank" rel="noreferrer noopener">world’s 7th&nbsp;largest coal producer</a>, South Africa is the&nbsp;<a>world’s 12th&nbsp;largest emitter</a>&nbsp;of carbon dioxide (C02) and is responsible for nearly half of Africa’s C02.



The energy industry is liable for the largest share of emissions, with the country’s energy utility, Eskom, berated as the&nbsp;<a href="https://energyandcleanair.org/eskom-worlds-most-polluting-power-company/" target="_blank" rel="noreferrer noopener">world’s most polluting power company</a>. While&nbsp;<a href="https://www.institutmontaigne.org/en/blog/too-cool-coal-future-south-africas-energy" target="_blank" rel="noreferrer noopener">80% of the country’s energy is still generated from coal</a>, the ongoing war in Ukraine is increasing&nbsp;<a href="https://www.youtube.com/watch?v=hb6Dx1ho75c" target="_blank" rel="noreferrer noopener">global demand for South African coal</a>.



With coal mining employing thousands, particularly in the north-eastern province of Mpumalanga, the impact of this industry on the environment and livelihoods is severe.&nbsp;<a href="https://www.greenpeace.org/africa/en/press/4202/new-satellite-data-reveals-the-worlds-largest-air-pollution-hotspot-is-mpumalanga-south-africa/" target="_blank" rel="noreferrer noopener">Greenpeace</a>&nbsp;has identified the city of Witbank, in Mpumalanga’s coal belt, as the world’s largest Nitrogen Dioxide hotspot, and a recent&nbsp;<a href="https://www.hrw.org/news/2022/03/24/south-african-court-urges-action-deadly-air-pollution" target="_blank" rel="noreferrer noopener">court ruling</a>&nbsp;found that air pollution in the area infringes residents&#8217; constitutional right to an environment that isn’t harmful to their health. This just transition away from coal is a necessity not just for those suffering the consequences of extreme weather but for lives indebted to the economic clout of coal in regions like Mpumalanga.



A key mandate of the partnership involves the need for an equitable and inclusive transition for workers and vulnerable communities away from current economic dependencies. While coal mining has been a bedrock of the economy, South Africa is blessed with&nbsp;<a href="https://www.sciencedirect.com/science/article/pii/S1876610217365165#:~:text=With%20an%20average%20of%202%2C500,competitive%20with%20the%20solar%20potential." target="_blank" rel="noreferrer noopener">immense renewable energy potential</a>&nbsp;for the just transition, boasting an average of 2,500 hours of sunshine per year and 4,5 to 6,6 kWh/m2&nbsp;of radiation levels for solar power; and wind power potential of up to 6,7000 GWs.



The partnership aims to mobilize $8,5 billion over 3-5 years to bring South Africa’s carbon emissions within the Paris Agreement targets by shifting away from fossil fuels to renewable sources. Renewable energy has already created over&nbsp;<a href="https://mg.co.za/opinion/2021-09-01-renewable-energy-can-create-about-231-400-jobs-up-to-2030/" target="_blank" rel="noreferrer noopener">55,000 jobs in the country</a>, and, in Mpumalanga alone,&nbsp;<a href="https://www.engineeringnews.co.za/article/up-to-72-000-energy-transition-jobs-could-be-created-in-mpumalanga-by-2030-study-shows-2021-12-08" target="_blank" rel="noreferrer noopener">up to 72,000 energy transition jobs</a>&nbsp;can be created through 2030. The adverse, unfortunately, is that roughly 74,000 jobs are at risk. Sustainable job alternatives for such workers are crucial.

KZN Floods_Flickr_52003672603_c6c56c8529_b

How South Africa’s recent floods compel climate action￼

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LVMVISQKKZL3NN6CWXWCTWREGU-820x546.jpg" alt="" class="wp-image-416610" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LVMVISQKKZL3NN6CWXWCTWREGU-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LVMVISQKKZL3NN6CWXWCTWREGU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LVMVISQKKZL3NN6CWXWCTWREGU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LVMVISQKKZL3NN6CWXWCTWREGU-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LVMVISQKKZL3NN6CWXWCTWREGU-1536x1023.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LVMVISQKKZL3NN6CWXWCTWREGU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: A worker sprays water over piles of coal at Mundra Port Coal Terminal in the western Indian state of Gujarat April 2, 2014. REUTERS/Amit Dave</figcaption></figure>



LAUNCESTON, Australia, April 21 (Reuters)&nbsp;&#8211;&nbsp;India&#8217;s coal imports are starting to reflect shifting world trade and pricing dynamics in the wake of Russia&#8217;s invasion of neighbouring Ukraine.



India, the world&#8217;s second-biggest coal importer behind China, has long been viewed as a price-sensitive buyer of the polluting fuel, and given the surge in prices after Russia&#8217;s Feb. 24 attack on Ukraine, it was always likely that trade flows would be affected.



Russia is the world&#8217;s third-largest coal exporter and it&#8217;s expected that many buyers, especially in Europe and Japan, will stop importing fuel from Russia in coming months as part of economic efforts to isolate Moscow.



India hasn&#8217;t been a major buyer of Russian coal, but it will still be affected by the loss of Russian cargoes as other importers seek to replace Russian volumes with supplies from exporters such as Australia, Indonesia and South Africa.



These three exporters are India&#8217;s major suppliers and are likely to see increasing demand for cargoes in coming months.



South African cargoes are likely to flow to Europe as it seeks to replace Russian coal, while Australian volumes are likely to increase to traditional buyers in north Asia, such as Japan and South Korea.



India&#8217;s overall coal imports look set to be relatively robust in April, with commodity consultants Kpler estimating arrivals will total 15.92 million tonnes.



This is down from March&#8217;s 21.79 million tonnes, but up from 12.77 million in February.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/eu-countries-hunt-for-global-coal-stocks-as-russian-ban-looms/">EU countries hunt for global coal stocks as Russian ban looms</a></h3>



March was something of an outlier for coal imports across Asia, as volumes surged after Indonesia ended an abrupt one-month ban on exports, which had impacted its shipments in January and February.



Looking at the breakdown of India&#8217;s imports reveals flows are already shifting.



It&#8217;s important to separate the main types of coal, namely metallurgical, or coking, coal used to make steel, and thermal coal used to generate power or in some industrial processes such as making cement.



India&#8217;s imports of coking coal have been steady in recent months, reflecting strong demand for steel, both for domestic consumption and for export.



April imports of coking coal are estimated by Kpler at 4.66 million tonnes, down from 6.17 million in March but in line with February&#8217;s 5.01 million and January&#8217;s 4.91 million.



Australia, the world&#8217;s top exporter of coking coal, remains the top supplier, with imports of 3.17 million tonnes likely in April, down from 3.96 million in March and 3.51 million in February.



The slight drop in coking coal imports from Australia shows the resilience of this trade, given that the price of Australian coking coal on the Singapore Exchange&nbsp;SCAFc1&nbsp;has sky-rocketed in recent months, reaching a record high of $635 a tonne on March 10.



It has since slipped back to $483.33 a tonne at the close on Wednesday, but this is still more than four times the $111 it was trading at on the same day last year.



India has few options to secure alternative supplies of coking coal, with Russia perhaps being the best hope, although it&#8217;s worth noting that April arrival of this grade of coal from Russia are estimated at just 238,933 tonnes, down from 620,748 in March and 383,016 in February.



This means that India has little choice when it comes to coking coal but to buy what it can from Australia, with alternatives such as Canada and the United States likely to prove just as pricey, especially when the higher freight costs are included.



<h2 class="wp-block-heading" id="h-thermal-dynamics">THERMAL DYNAMICS</h2>



For thermal coal, it appears India is trying to shift to cheaper supplies from Indonesia, with Kpler estimating April arrivals from the Southeast Asian nation at 7.37 million tonnes.



While this is down from 9.79 million tonnes in March, it is up strongly from 3.54 million in February and 2.45 million in January.



At the same time, India&#8217;s imports of thermal coal from Australia are dropping, down to 908,795 tonnes in April, compared to 982,238 in March and well below the recent peak of 2.10 million in November last year.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/anglo-american-completes-exit-from-south-african-coal-miner-thungela/">Anglo American completes exit from South African coal miner Thungela</a></h3>



Imports from South Africa are also slipping, with April arrivals slated to reach 1.16 million tonnes, down from 2.86 million in March and 2.20 million in February.



Both South African and Australian thermal coal prices have surged since the Russian invasion of Ukraine, with futures for benchmark Australian Newcastle cargoes&nbsp;NCFMc1&nbsp;ending at $326.35 a tonne on Wednesday, versus the record high of $440 on March 2, but more than four times the $93.75 from the same day in 2021.



Indonesian coal prices have also rallied, but nowhere near to the extent as those for Australian and South African, most likely reflecting more limited export markets for the lower-energy coal produced by the Southeast Asian nation.



Indonesian coal contracts in Singapore&nbsp;S42CFc1&nbsp;ended at $90.38 a tonne on Wednesday, down from the recent record high of $140 on March 3, and also just slightly less than double the $47.82 from April 20 last year.



It&#8217;s likely that Indian utilities will continue to seek out cheaper Indonesian thermal coal, as well as looking at heavily discounted Russian coal in coming months, while seeking to cut out unaffordable cargoes from Australia and South Africa.



(Editing by Himani Sarkar)

A worker sprays water over piles of coal at Mundra Port Coal Terminal in the western Indian state of Gujarat

India’s coal imports are shifting, thermal more than coking: Russell

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="512" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/2FIYK2X4Z5O7NGVUMOI3W4ADHU-820x512.jpg" alt="" class="wp-image-413229" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/2FIYK2X4Z5O7NGVUMOI3W4ADHU-820x512.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/2FIYK2X4Z5O7NGVUMOI3W4ADHU-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/2FIYK2X4Z5O7NGVUMOI3W4ADHU-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/2FIYK2X4Z5O7NGVUMOI3W4ADHU-768x479.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/2FIYK2X4Z5O7NGVUMOI3W4ADHU.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>
A child collecting chunks of coal looks on at a colliery while smoke rises from the Duvha coal-based power station owned by state power utility Eskom, in Emalahleni, in Mpumalanga province, South Africa, June 2, 2021. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, April 14 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s state-owned logistics firm Transnet has declared force majeure and is seeking to terminate long-term coal transportation agreements, thermal coal producer and exporter Thungela Resources&nbsp;TGAJ.J&nbsp;said on Thursday.



Despite Thungela saying rail services and coal exports are continuing, and the development would not significantly impact its 2022 production forecast, its shares fell 6% by 1230 GMT, their biggest fall in a month.



Transnet did not immediately reply to a request for comment.



Large-scale theft of copper cables, insufficient maintenance, and a lack of locomotives have crippled Transnet&#8217;s freight rail network used by coal and iron ore miners to transport their minerals to port.



&#8220;Transnet believes that these circumstances will continue to detract from its ability to perform for at least the next six months and that accordingly Transnet is under force majeure,&#8221; Thungela said in a statement.



Triggering a force majeure clause in contracts allows certain terms of an otherwise legally binding agreement to be ignored because of unavoidable circumstances.



<h3 class="wp-block-heading" id="h-read-more-anglo-american-completes-exit-from-south-african-coal-miner-thungela">Read more: <a href="https://www.cnbcafrica.com/2022/anglo-american-completes-exit-from-south-african-coal-miner-thungela/">Anglo American completes exit from South African coal miner Thungela</a></h3>



Thungela said Transnet on April 8 notified coal exporters of force majeure and &#8220;expressed a desire&#8221; to terminate its long-term coal transportation agreements.



The coal exporters are engaging with Transnet to &#8220;clarify the contractual position&#8221; and ensure the stability of coal deliveries to take advantage of strong demand for South African coal, Thungela said.



&#8220;We are encouraged that Transnet has reaffirmed its commitment to existing material commercial terms,&#8221; Thungela CEO July Ndlovu said.



Coal producer Exxaro Resources last week said it had received &#8220;numerous&#8221; requests from European countries wanting to sign supply contracts, after the European Union proposed sanctions on Russian coal.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2W52HY&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Both Exxaro and Thungela have said Transnet&#8217;s issues constrain their ability to ramp up coal production to meet the new demand.



Last year, Transnet railways delivered 58.3 million tonnes of coal to the Richards Bay Coal Terminal on South Africa&#8217;s east coast, significantly undershooting its annual capacity of 77 million tonnes.



(Reporting by Helen Reid; editing by Robert Birsel, Elaine Hardcastle)

2FIYK2X4Z5O7NGVUMOI3W4ADHU

South Africa’s Transnet declares force majeure on coal contracts, Thungela says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/6P3A4A5Y3FPCBIXZTKFUXZLSHM-820x549.jpg" alt="" class="wp-image-416341" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/6P3A4A5Y3FPCBIXZTKFUXZLSHM-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/6P3A4A5Y3FPCBIXZTKFUXZLSHM-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/6P3A4A5Y3FPCBIXZTKFUXZLSHM-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/6P3A4A5Y3FPCBIXZTKFUXZLSHM-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/6P3A4A5Y3FPCBIXZTKFUXZLSHM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>The lignite (brown coal) power plant complex of German energy supplier and utility RWE is reflected in a large puddle in Neurath, northwest of Cologne, Germany, February 5, 2020. REUTERS/Wolfgang Rattay/</figcaption></figure>



LONDON, April 6 (Reuters) – European buyers are increasing shipments of coal from across the globe against a backdrop of a proposed European Union ban on Russian imports and the scramble to relieve tight gas supplies, according to data and shipping sources.



The European Commission on Tuesday proposed new sanctions against Moscow over its invasion of Ukraine, including a ban on buying Russian coal and on Russian ships entering EU ports.



The new proposed restrictions come at a time of uncertainty about future gas deliveries from Russia to the EU later this month after the Kremlin’s demand that buyers start paying Russian gas giant Gazprom in roubles.



In March, European countries imported a total of 7.1 million tonnes of thermal coal, which is used in power and heat generation, a 40.5% increase year-on-year and the highest level since March 2019, analysis from shipbroker Braemar ACM, based on ship tracking data, found.



“Despite Russian coal shipments to Europe in March still continuing at pre-war levels, the expected alteration in coal flows into Europe has started to show,” Braemar dry bulk analyst Mark Nugent said.



“Shipments from Colombia and the United States have been strong in response to the conflict with Atlantic suppliers providing the most cost-efficient alternative for European end-users.”



The EU depends on Russia for around 45% of its coal imports, 45% of its gas imports and around 25% of its oil imports, according to the European Commission website.



EU envoys are set to approve on Thursday a ban on Russian coal that would take full effect from mid-August, a month later than initially planned, two EU sources told Reuters, following pressure from Germany to delay the measure.



Braemar data showed 3.5 million tonnes of Russian thermal coal were imported into the EU in March, the highest monthly total since October 2020.



On a weekly basis, March 28-April 1 saw the highest levels of Russian thermal coal imports since the Feb. 24 invasion began, with 887,000 tonnes of Russian thermal coal imported into the EU, according to Braemar.



German coal importers’ group VDKi on Wednesday said the country should be able to find alternatives to Russian hard coal imports by the peak demand winter season, but there will be technical issues and increased costs. “Alternatives to Russian coal do exist but will be costly,” consultancy Eurasia Group said in a note on Wednesday.



Thermal coal imports from Colombia totalled 1.3 million tonnes in March, rising by 47.3% year-on-year, Braemar data showed.



Imports from the U.S. in March totalled 809,000 tonnes, rising by 30.3% year-on-year and at their highest level since October 2019.



Imports from South Africa also picked up with 287,000 tonnes arriving in March versus no shipments in March last year.



<h3 class="wp-block-heading" id="h-read-more-coal-s-rally-thumps-oil-and-gas-brings-pain-to-asian-buyers-russell">Read more: <a href="https://www.cnbcafrica.com/2022/coals-rally-thumps-oil-and-gas-brings-pain-to-asian-buyers-russell/">Coal’s rally thumps oil and gas, brings pain to Asian buyers: Russell</a></h3>



Australia has also found renewed buying interest from Europe, with thermal coal imports totalling 537,000 tonnes in the first quarter of this year, versus no shipments over the same period in 2021, Braemar said.



But Indonesia and Australia, among the world’s top coal exporters, have hit their production limits and are unlikely to meet Europe’s demand for additional supplies if the European Union bans Russian coal imports, mining executives said.



“There is greater concern over the risks with trading Russian coal (due to broader sanctions), so that is already having an impact on shipments,” one shipping source familiar with the trade said.



Europe is also looking for supplies of metallurgical coal, which is used for steelmaking.



Australia’s Coronado Global Resources, with metallurgical coal operations in the Australia and the United States, has received queries in the past few weeks from Europe for met coal to replace Russian met coal supplies, a spokesperson said, adding that it expected to meet some of that new demand.



Greece will ramp up coal mining in the next two years as a “temporary” measure to help reduce a dependence on gas that has soared since last year and after Russia’s invasion, Greek Prime Minister Kyriakos Mitsotakis said this week.



Although it is still more expensive to burn gas to produce power than coal, the price of thermal – which is for heating and power generation – has reached all-time highs this year.



Alex Stuart-Grumbar, dry bulk analyst with shipping consultancy MSI, said Europe’s need to import more coal from sources further afield would be positive for the larger panamax and capesize shipping segments on long-haul coal trade routes.



“The initial disruption to trade patterns will be positive for dry bulk markets, though ultimately, this will push global coal prices higher, incentivising China and India to produce more coal domestically,” Stuart-Grumbar said.



(Reporting by Jonathan Saul; Additional reporting by Nina Chestney in London and Sonali Paul in Melbourne; Editing by Veronica Brown and David Evans)

6P3A4A5Y3FPCBIXZTKFUXZLSHM

EU countries hunt for global coal stocks as Russian ban looms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/AL7S4SYCZJOFXPTXK6EOICZ5MM-820x542.jpg" alt="" class="wp-image-416278" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/AL7S4SYCZJOFXPTXK6EOICZ5MM-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/AL7S4SYCZJOFXPTXK6EOICZ5MM-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/AL7S4SYCZJOFXPTXK6EOICZ5MM-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/AL7S4SYCZJOFXPTXK6EOICZ5MM-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/AL7S4SYCZJOFXPTXK6EOICZ5MM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Sand blows across a normally submerged area at Theewaterskloof dam near Cape Town, South Africa, January 20, 2018. REUTERS/Mike Hutchings/File Photo</figcaption></figure>



April 4 (Reuters)&nbsp;&#8211;&nbsp;Cities are driving the human-caused climate change that threatens the global environment, but also offer hope.



That is the overriding message of a chapter devoted to cities in a major U.N. report on climate change released on Monday, providing city planners around the world guideposts aimed at avoiding climate catastrophe.



&#8220;The fact that cities are responsible for more than two-thirds of global greenhouse gas emissions means that if cities do something, they can solve two-thirds of the problem. So that&#8217;s pretty exciting,&#8221; said Karen Seto, a professor at Yale University&#8217;s School of the Environment and one of two coordinating lead authors of the report&#8217;s chapter on cities.



Many cities around the globe have taken action already. Mexico City has banned plastic bags. Minneapolis, Minnesota, eliminated zoning for single-family homes to promote density. Paris has outlawed diesel cars.



&#8220;Every city can do something, and not every city&#8217;s going to do the exact same thing,&#8221; Seto said. &#8220;Not every city needs to look the same. Not every building needs to be a high rise.&#8221;



Cities, particularly the small and medium-sized cities of Asia and Africa that will see the most growth this century, offer the opportunity reduce reliance on automobiles, employ environmentally friendly building materials, and capture stormwater runoff, according to the report&#8217;s experts.



Cities can become havens of urban forests, street trees and green roofs, which will not only sequester and store carbon but also induce a cooling effect that reduces energy demand and energy use for water treatment, said the report, the latest from the Intergovernmental Panel on Climate Change.



Urban density also avoids rural and suburban sprawl, which is less energy efficient and destroys natural habitats.



<h3 class="wp-block-heading" id="h-read-more-international-women-s-day-celebrates-the-contribution-of-women-and-girls-as-climate-solution-multipliers">Read more: <a href="https://www.cnbcafrica.com/2022/international-womens-day-celebrates-the-contribution-of-women-and-girls-as-climate-solution-multipliers/">International Women’s Day celebrates the contribution of women and girls as climate solution multipliers</a></h3>



&#8220;The 21st century will be the urban century, defined by a massive increase in global urban populations,&#8221; the report said, noting that 55% of the world&#8217;s population lived in urban areas as of 2018, a figure expected to jump to 68% by 2050.



At the same time, however, &#8220;the global trend of urbanization also offers a critical opportunity in the near term, to advance climate resilient development.&#8221;



The report focuses on mitigation, noting that alleviating climate change in cities will have an outsized effect on surrounding areas and help improve the mental and physical health of urban dwellers.



As with the global thrust of the&nbsp;<a href="https://report.ipcc.ch/ar6wg3/pdf/IPCC_AR6_WGIII_FinalDraft_FullReport.pdf" target="_blank" rel="noreferrer noopener">overall report</a>, the authors call on governments and industry to act with extreme urgency and make significant new commitments toward financing.



Urban areas generated 67% to 72% of carbon dioxide and methane emissions in 2020, up from 62% in 2015. Without any mitigation efforts, the raw amount of urban emissions could double from 2020 to 2050, the report said.



But with aggressive and immediate mitigation policies, urban greenhouse gas emissions could approach net zero by 2050.



As home to generally more prosperous people, urban cities emit more greenhouse gases.



Of the additional 2.5 billion people expected to live in cities by midcentury, 90% of the increase will take place in Africa and Asia, requiring more advanced economies and multinational companies to finance green development.



Capital will be needed to promote carbon sequestration, avoid emissions and reduced energy use.



Seto said she was optimistic because consumers and investors in the &#8220;global north&#8221; are demanding sustainability, and because the cost of new technologies such as photovoltaics and batteries for electric vehicles is going down.



&#8220;The cost of the status quo is worse than doing nothing,&#8221; Seto said.



(Reporting by Daniel Trotta; Editing by Donna Bryson and Leslie Adler)

AL7S4SYCZJOFXPTXK6EOICZ5MM

Cities driving climate change, but part of the solution -UN report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-820x547.jpg" alt="" class="wp-image-415788" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: A man stands on a boat as coal barges queue to be pulled along Mahakam river in Samarinda, East Kalimantan province, Indonesia, August 31, 2019. REUTERS/Willy Kurniawan</figcaption></figure>



LAUNCESTON, Australia, March 10 (Reuters)&nbsp;&#8211;&nbsp;The skyrocketing price of crude oil and natural gas in Europe in the wake of Russia&#8217;s invasion of Ukraine is grabbing the bulk of headlines, but their gains look modest compared to those of thermal coal.



While coal may be exiting the electricity sector in Europe and North America, it remains the most vital source of power generation for much of Asia.



Seaborne thermal coal prices have soared to record highs in recent sessions, with the market spooked by the potential loss of Russian cargoes, flood-related supply disruptions in Australia and the threat of another Indonesian export ban.



Futures linked to the Australian benchmark Newcastle index&nbsp;NCFMc1&nbsp;ended at $415 a tonne on Wednesday, down from the recent record high of $440 on March 2.



The contract has spiked 145% since the end of last year, with much of the gain coming since the Russian invasion of Ukraine on Feb. 24, with the price closing at $237.70 a tonne the day prior.



To put coal&#8217;s gain into perspective, benchmark Brent crude futures LCOc1 closed at $112.51 a barrel on Wednesday, up 45% from the end of last year, while Dutch natural gas TRNLTTFMc1 ended at 148 euros per megawatt hour, a gain of 115% from the last trading day in 2021.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/oil-markets-hit-multiple-milestones-after-russia-sanctions/">Oil markets hit multiple milestones after Russia sanctions</a></h3>



And it&#8217;s not just paper coal markets that are on fire, the gains have been matched by some physical trades as well, with globalCOAL reporting the sale of Newcastle coal for April at a premium of $38 a tonne to the index, and for June at a premium of $48.



South African coal, which can arbitrage between European and Asian destinations, saw a March cargo trade at a premium of $30 a tonne to the index price at the country&#8217;s Richards Bay port, according to globalCOAL.



While these prices look unsustainably high, it&#8217;s worth noting that relatively small volumes are transacted on a spot basis in the coal market.



Far more common are short- and medium-term contracts, with utilities in major seaborne buyers such as Japan and South Korea preferring to negotiate prices with miners well ahead of delivery times.



However, the surging price of spot coal will eventually be reflected in these types of contracts as well, leading to significant inflation in energy costs for countries that rely on imported fuel.



While cargoes currently being loaded and sailing will have been bought at prices well below the present level, it&#8217;s likely that from April onwards the market will have to bear the full extent of spike caused by the Ukraine crisis.



<h2 class="wp-block-heading" id="h-demand-drop-coming">DEMAND DROP COMING?</h2>



As yet, there is little sign of major demand destruction, although price sensitive buyers such as India, the world&#8217;s second-biggest coal importer, are starting to see import volumes decline.



India brought in 7.33 million tonnes of thermal coal, used for power generation, in February, up slightly from 7.08 million in January, which was the weakest month since June 2020, according to data and analytics company Kpler.



India&#8217;s thermal coal imports are more usually in a range between 10 and 15 million tonnes a month, with Indonesia, South Africa and Australia the biggest suppliers.



China&#8217;s imports of thermal coal also weakened in the first two months of 2022, with Kpler showing volumes of 10.38 million tonnes in February and 10.11 million in January, down from 19.35 million in December.



Indonesia&#8217;s short-lived export ban in January would explain much of the decline in China&#8217;s imports, but Beijing has also been working hard to get domestic miners to ramp up production in order to secure energy supplies.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/oil-prices-surge-as-russia-ukraine-crisis-escalates/">Oil prices surge as Russia-Ukraine crisis escalates</a></h3>



The question for Asia&#8217;s seaborne coal market is how quickly the current unprecedented prices will translate into demand destruction.



It&#8217;s very likely that buyers such as India, Bangladesh and Pakistan will avoid buying coal as their utilities will be massively loss-making if they paid the current price, or even half of what is right now.



Utilities in Japan and South Korea have less choice, given that the alternative of liquefied natural gas (LNG) is even more expensive on a spot basis, and the surge in crude prices will filter through to oil-linked contracts in coming months as well.



GRAPHIC-Prices of seaborne thermal coal:&nbsp;<a href="https://tmsnrt.rs/3tKJOqj" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3tKJOqj</a>



The opinions expressed here are those of the author, a columnist for Reuters.



(Editing by Kim Coghill)

FILE PHOTO: Man stands on a boat as coal barges queue to be pull along Mahakam river in Samarinda

Coal’s rally thumps oil and gas, brings pain to Asian buyers: Russell

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107021308-1645837269547-gettyimages-1238761390-US_GAS_PRICES.jpeg" alt="" class="wp-image-415641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107021308-1645837269547-gettyimages-1238761390-US_GAS_PRICES.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107021308-1645837269547-gettyimages-1238761390-US_GAS_PRICES-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107021308-1645837269547-gettyimages-1238761390-US_GAS_PRICES-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>A driver holds a fuel nozzle at a Shell gas station in San Francisco, California, U.S., on Friday, Feb. 25, 2022. David Paul Morris | Bloomberg | Getty Images</figcaption></figure>



Russia’s Ukraine invasion&nbsp;could have set in motion an energy market disruption on the scale of major oil crises in the 1970s, according to Daniel Yergin, vice chairman of IHS Markit.



Moscow is one of the world’s largest oil exporters. Sanctions by the U.S. and allies on Russia’s financial system have already set in motion a backlash against Russian crude from banks, buyers and shippers.



Yergin, also an author and energy market historian, said even though Russian energy was not sanctioned by the U.S. and other countries, there could be a large loss of Russian barrels from the market. The country exports about 7.5 million barrels a day of oil and refined products, he noted.



“This is going to be a really big disruption in terms of logistics, and people are going to be scrambling for barrels,” Yergin said. “This is a supply crisis. It’s a logistics crisis. It’s a payment crisis, and this could well be on the scale of the 1970s.”



He said strong communications between governments imposing the sanctions and the industry could head off a worst-case scenario. “Governments need to provide clarity,” Yergin said.



He noted that members of NATO receive about half of Russia’s exports. “Some share of that is going to be disrupted,” Yergin said.



<h2 class="wp-block-heading" id="h-wariness-toward-russian-oil"><a></a>Wariness toward Russian oil</h2>



Yergin said there are “de facto” sanctions working to keep Russian oil from the market, even though energy was not specifically sanctioned. Buyers are wary of Russian oil because of pushback from banks, ports and shipping companies that do not want to run afoul of sanctions.



JPMorgan estimates that 66% of Russian oil is struggling to find buyers, and that crude prices could reach $185 by the end of the year if Russian oil remains disrupted.



“This could be the worst crisis since the Arab oil embargo and the Iranian revolution in the 1970s,” Yergin said. Both events were major oil shocks in that decade.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/oil-markets-hit-multiple-milestones-after-russia-sanctions/">Oil markets hit multiple milestones after Russia sanctions</a></h3>



In 1973, Middle Eastern oil producers cut off supply from the U.S. and other Western countries in retaliation for assisting Israel during the&nbsp;Arab-Israeli war&nbsp;that year. Oil was immediately in short supply, and Americans lined up at gas stations to buy skyrocketing gasoline. The other shock was the result of the 1978-1979 Iran revolution, which led to the overthrow of the Shah of Iran.



Oil majors, like&nbsp;BP&nbsp;and&nbsp;Exxon Mobil&nbsp;have said they are exiting Russian ventures. The price of Russia’s Ural crude has fallen sharply, compared with the international benchmark Brent crude.



“What we haven’t seen before is the big reputational issue as well, companies not wanting to do business with Russia,” said Yergin. Oil companies are giving up major investments, where they may have spent years developing operations and employed hundreds of people in Russia.



“Vladimir Putin&nbsp;in a week has destroyed what he spent 22 years building, an economy that was basically integrated with the global economy. Now what’s happened is Russia is unplugged from the global economy,” he said.



<h2 class="wp-block-heading" id="h-an-approaching-disruption"><a></a>An approaching disruption</h2>



Yergin said the disruption is coming when the market is already tightly supplied. OPEC+, an alliance between OPEC, Russia and others, decided Wednesday to continue their current production plans. They are returning about 400,000 barrels a day to the market each month until they reach their target in June.



Also adding to the pain for Russia’s customers has been the spike in European natural gas prices. Europe is the biggest customer for both Russian oil and gas.



Oil prices were already rising when Russia rolled its tanks into Ukraine last Thursday. Brent was trading&nbsp;above $116 per barrel Thursday before backing off&nbsp;amid speculation that Iran may reach a deal to reenter its nuclear deal. That could bring 1 million barrels of Iranian oil back to the market.



Industry analysts say it is difficult to tell how much Russian oil will be affected. The White House said while there are no sanctions on energy,&nbsp;they are on the table.



IHS Markit hosts the annual CERAWeek energy conference in Houston next week. Executives from many energy companies, including&nbsp;Chevron, Exxon Mobil, Total,&nbsp;Occidental Petroleum&nbsp;and&nbsp;ConocoPhillips, will be speaking, and a major topic at the conference is expected to be how Russian barrels will be replaced.



“I think you’re talking about losing 2 to 3 million barrels a day,” said John Kilduff, partner at Again Capital. Bank of America has estimated that for every million barrels lost from the market, the price of Brent could rise by $20 per barrel.



Kilduff said he expects Russian pipeline oil to continue to flow to China.&nbsp;Beijing said it will not join sanctions against Russia.



Analysts have said crude that is carried by ships is more likely to be wanting for buyers.



“This time we’re cutting off the oil ourselves. It’s a self-inflicted embargo,” said Kilduff. “It’s a buyers’ strike this time, not suppliers acting out. &#8230; If you can’t finance it and you can’t get it paid for there’s no way the Russians are going to sell it.”

107021308-1645837269547-gettyimages-1238761390-US_GAS_PRICES

The world could be on the brink of an energy crisis rivaling the 1970s, says IHS Markit’s Yergin

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/black-coal-1542285036I13-820x547.jpg" alt="" class="wp-image-378829" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/black-coal-1542285036I13-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/black-coal-1542285036I13-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/black-coal-1542285036I13-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/black-coal-1542285036I13-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/black-coal-1542285036I13-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/black-coal-1542285036I13-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/black-coal-1542285036I13-1068x712.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/black-coal-1542285036I13-600x400.jpg 600w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/black-coal-1542285036I13.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



LAUNCESTON, Australia, March 1 (Reuters)&nbsp;&#8211;&nbsp;Asia&#8217;s imports of coal slumped in February as prices remained close to record highs for both thermal and coking grades, and the crisis in Ukraine means the cost of the fuel is unlikely to retreat any time soon.



Seaborne imports of all grades of coal across Asia, the top-consuming region for the polluting fuel, fell to 59.27 million tonnes in February from 61.92 million in January, according to port and vessel-tracking data compiled by Refinitiv.



This was the lowest monthly total in Refinitiv data dating back to January 2015, and was also some 13% below the 68.15 million tonnes the continent imported by ship in February 2021.



A milder winter across north Asia, high prices and the lingering effects of Indonesia&#8217;s short-lived export ban for the month of January are the most likely culprits behind the drop in February import volumes.



China, the world&#8217;s biggest coal importer, has recorded a weak start to 2022, with February imports of 11.65 million tonnes marginally higher than January&#8217;s 11.27 million, but the combined total for the first two months of the year is the lowest Refinitiv has assessed.



Imports in the first two months of 22.92 million tonnes are 46.2% below the 42.58 million recorded in the first two months of last year, according to Refinitiv.



India, the second-biggest importer, brought in 10.93 million tonnes of coal in February, down a touch from January&#8217;s 11.06 million. The combined total for the first two months is 31% adrift of the 31.83 million for the same period in 2021.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/oil-prices-surge-as-russia-ukraine-crisis-escalates/">Oil prices surge as Russia-Ukraine crisis escalates</a></h3>



Third-ranked Japan imported 12.71 million tonnes in February, down from January&#8217;s 15.62 million and a decline of 7% for the first two months of 2022 compared to the same period last year.



South Korea, Asia&#8217;s fourth-biggest coal importer, saw arrivals of 7.37 million tonnes in February, down from January&#8217;s 10.2 million, but unlike the region&#8217;s big three, this was actually a modest 4% gain on the first two months of 2021.



It&#8217;s perhaps not surprising that coal imports were lower in Asia at the start of this year, given the winter just ended was milder than the previous winter of 2020-21.



But high prices are also likely to have played a part in the drop in volumes, especially for price sensitive buyers such as India and Pakistan.



Some cargoes delivered across Asia in February would have been bought at spot prices that prevailed in January, when regional benchmarks shot higher as the world&#8217;s top exporter of thermal coal, Indonesia, implemented a ban on exports in order to ensure supplies for domestic power plants.



The benchmark Newcastle Index for Australian thermal coal&nbsp;ARGMCCINDEX=ARG, as assessed by commodity price reporting agency Argus, leapt from $175.25 a tonne at the end of 2021 to a record high of $264.52 a tonne in the week to Feb. 25.



The crisis in global energy markets created by Russia&#8217;s invasion of neighbouring Ukraine last week has seen the Newcastle price climb even higher, with futures traded on the ICE exchange&nbsp;NCFMc1&nbsp;ending at $275 a tonne on Monday.



In the physical market globalCOAL reported the bid/offer component for Newcastle coal at $287.50 a tonne on Feb. 25, while similar grade South African coal for export at Richards Bay was assessed at $247.50.



<h2 class="wp-block-heading" id="h-seasonal-price-retreat-postponed">SEASONAL PRICE RETREAT POSTPONED?</h2>



In more normal circumstances it may be expected that the combination of high prices, lower import volumes and the end of the northern winter would result in downward pressure on prices.



But the crisis in Ukraine has upended normal expectations.



Russia remains a major coal supplier to Asia, and while sanctions against Moscow have yet to target energy exports, it&#8217;s likely that an increasing number of traders, utilities, banks and insurers will effectively self-sanction.



Russia shipped 7.06 million tonnes of coal to customers in Asia in February, down slightly from 7.26 million in January, according to data from commodity consultants Kpler.



Major buyers included China with 1.89 million tonnes in February, South Korea with 1.58 million, Taiwan 879,000 and Japan 831,000, according to Kpler.



If these buyers decide that Russian coal is no longer desirable or feasible to import, this is going to put pressure on supplies from other sources, such as Indonesia, Australia, South Africa and the United States.



Uncertainty is likely to keep coal prices well bid, even as high prices contribute to demand destruction in Asia.



(Editing by Richard Pullin)

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Asia’s coal imports decline, but Ukraine crisis will keep prices up: Russell

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/IRQ2BZVZSFLDRESTH5IW2WLYRI-820x546.jpg" alt="" class="wp-image-415400" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/IRQ2BZVZSFLDRESTH5IW2WLYRI-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/IRQ2BZVZSFLDRESTH5IW2WLYRI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/IRQ2BZVZSFLDRESTH5IW2WLYRI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/IRQ2BZVZSFLDRESTH5IW2WLYRI-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/IRQ2BZVZSFLDRESTH5IW2WLYRI-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/IRQ2BZVZSFLDRESTH5IW2WLYRI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: A woman picks up plastic cups along the riverbank of Pasig river, in Manila, Philippines, June 10, 2021. REUTERS/Lisa Marie David</figcaption></figure>



LONDON, Feb 22 (Reuters)&nbsp;&#8211;&nbsp;Three in four people worldwide want single-use plastics to be banned as soon as possible, according to a poll released on Tuesday, as United Nations members prepare to begin talks on a global treaty to rein in soaring plastic pollution.



The percentage of people calling for bans is up from 71% since 2019, while those who said they favoured products with less plastic packaging rose to 82% from 75%, according to the IPSOS poll of more than 20,000 people across 28 countries.



Activists say the results send a clear message to governments meeting in Nairobi this month to press ahead with an ambitious treaty to tackle plastic waste, a deal being touted as the most important environmental pact since the Paris Agreement on climate change in 2015.



&#8220;People worldwide have made their views clear,&#8221; said Marco Lambertini, WWF International&#8217;s director general. &#8220;The onus and opportunity is now on governments to adopt a global plastics treaty &#8230; so we can eliminate plastic pollution.&#8221;



Nearly 90% of those surveyed said they supported a treaty, but it remains to be seen whether any such deal will focus on waste collection and recycling or take more radical measures such as curbing production and use of throwaway plastics. <a href="https://www.reutersconnect.com/all?search=all%3AL8N2US7H3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



<h3 class="wp-block-heading" id="h-read-more-britain-to-raise-nigerian-renewable-climate-change-investments">Read more: <a href="https://www.cnbcafrica.com/2022/britain-to-raise-nigerian-renewable-climate-change-investments/">Britain to raise Nigerian renewable, climate change investments</a></h3>



Reuters revealed last week that big oil and chemical industry groups were devising strategies to persuade conference participants to reject any deal that would limit production of plastic, which is made from oil and gas and a key source of their revenues.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2UR6F9&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



If the United Nations cannot agree on a deal to put the brakes on plastic pollution, there will be widespread ecological damage over the coming decades, putting some marine species at risk of extinction and destroying sensitive ecosystems such as coral reefs and mangroves, according to a WWF study released this month.



It is likely to take at least two years to finalise any treaty. But whatever is agreed at the Nairobi conference from Feb. 28 to March 2 will determine key elements of any deal.



The biggest support for single-use plastic bans in the poll came from the likes of Colombia, Mexico and India, developing countries at the sharp end of a waste crisis.



The IPSOS poll also showed that 85% of respondents globally want manufacturers and retailers to be held responsible for reducing, reusing and recycling plastic packaging, up from 80% previously.



(Reporting by John Geddie in LondonEditing by Mark Potter)

FILE PHOTO: Polluted Pasig River in Manila, Philippines

75% of people want single-use plastics banned, global survey finds

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="639" height="426" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/13070b6bad2acc46d2b644a90cdb43b9.jpg" alt="" class="wp-image-413594" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/13070b6bad2acc46d2b644a90cdb43b9.jpg 639w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/13070b6bad2acc46d2b644a90cdb43b9-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/13070b6bad2acc46d2b644a90cdb43b9-135x90.jpg 135w" sizes="auto, (max-width: 639px) 100vw, 639px" /><figcaption>Photo: via Reuters </figcaption></figure>



ABUJA, Nov 19 (Reuters) &#8211; The United States will do things differently in helping Africa build infrastructure needs, Secretary of State Antony Blinken said on Friday, adding that too often big international deals were opaque and coercive.



<a href="https://www.reuters.com/world/africa/us-wants-race-top-africa-infrastructure-amid-china-competition-says-blinken-2021-11-18,">Africa, which needs billions of dollars a year for roads, railways, dams and power, has over the last decade received funding from China</a> which generally does not tie the money to political or rights-related conditions.



<a href="https://www.reuters.com/world/africa/climate-security-dominate-us-secretary-states-maiden-africa-tour-2021-11-17">In a speech laying out the Biden administration&#8217;s policy approach to Africa</a>, Blinken said it was time to stop treating the continent as a subject of geopolitics and see it as a major player on its own. He appealed to African leaders to guard against rising extremism, authoritarianism and corruption.



Without mentioning China by name, Blinken said Washington would be transparent and sustainable.



&#8220;Too often, international infrastructure deals are opaque, coercive. They burden countries with unmanageable debt. They&#8217;re environmentally destructive. They don&#8217;t always benefit the people who actually live there. We will do things differently,&#8221; Blinken said during a visit to Nigeria.



The Biden administration has been criticised by some as inattentive to Africa: a common complaint about U.S. foreign policy but one that rings louder now China has deepened its political and economic roots on the continent.



<h2 class="wp-block-heading" id="h-new-tone">NEW TONE</h2>



The Biden administration has struck a different tone from the era of former President Donald Trump, who disparaged some African nations and barred travel from six of them.



Washington has rescinded that ban and dispatched diplomats to Ethiopia and Sudan to try to resolve conflicts. But complaints persist that the United States views Africa primarily in a negative light compared to China which talks of partnership.



&#8220;The U.S. needs to drop the old posture of viewing Africa as just a problem to be solved,&#8221; said Murithi Mutiga, project director for the Horn of Africa for International Crisis Group.



Blinken&#8217;s trip comes days after a judicial panel issued a damning report into the shooting by Nigerian security forces of unarmed demonstrators during anti-police brutality protests in Lagos last year.



Some Nigerians have been quick to note that the United States has been more reticent about criticizing their government – an ally in the fight against Islamist militants – than chiding Ethiopia or Sudan.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/climate-and-security-to-dominate-u-s-secretary-of-states-maiden-africa-tour/">Security, climate dominate as U.S. Secretary of State kicks off Africa tour</a></h3>



But Blinken said on Thursday authorities should hold to account Nigerian security forces accused of abuses.



Blinken warned that authoritarianism was on the rise around the world with internet freedom not guaranteed.



Nigeria suspended Twitter early this after a post by President Muhammadu Buhari was removed.



&#8220;Technology is being used to silence dissent and prosecute citizens. And democracies must answer the call to fight back against disinformation,&#8221; he said.



The United States will continue to help Africa fight conflict and extremism, but not everything could be solved with more or better-equipped armed forces, as this sometimes led to violation of rights, contributing to grievances and perpetuating cycles of violence, Blinken said.



(Additional reporting by Angela Ukomadu in Lagos and Jackson Njehia in Nairobi; Writing by MacDonald Dzirutwe; Editing by Hugh Lawson and Andrew Cawthorne)

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In pitch to Africa, Blinken vows cleaner business deals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-820x546.jpg" alt="" class="wp-image-413517" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-1536x1023.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/OPE7YIE4FFKHXEB7VSKA4T76K4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: U.S. Secretary of State Antony Blinken speaks during the release of the &#8220;2020 Country Reports on Human Rights Practices&#8221; at the State Department in Washington, DC, U.S., March 30, 2021. Mandel Ngan/Pool via REUTERS/File Photo</figcaption></figure>



NAIROBI, Nov 17 (Reuters) &#8211; U.S. Secretary of State Antony reiterated calls for an unconditional ceasefire in the Ethiopian conflict on Wednesday on the first leg of an African trip which will take in Kenya, Nigeria and Senegal.



Blinken also appealed to Sudan&#8217;s military leaders to free prisoners taken in the coup there last month and to return to the path of democracy, saying some of the financial assistance that was frozen might be restored if civilian leadership returned.



The war in northern Ethiopia, the coup in Sudan and Somalia&#8217;s long-delayed elections dominated the agenda, along with climate change, as Blinken and Kenya&#8217;s foreign minister Raychelle Omamo addressed the media in Nairobi.



Blinken described Ethiopia&#8217;s year-old war as &#8220;a growing risk to the unity and the integrity of the Ethiopian state&#8221;.



He pledged support for mediation efforts by former Nigerian President Olusegun Obasanjo, now the Africa Union&#8217;s High Representative for the Horn of Africa, and said there was still time for a ceasefire to succeed.



&#8220;I strongly believe there is an opportunity and an absolute necessity for all the parties to stop, to talk, to move back, for humanitarian assistance to flow and also to be at the table together,&#8221; he said.



He also urged rebellious Tigrayan-led forces to stop their threatened advance on the Ethiopian capital Addis Ababa &#8211; where the AU is headquarted.



Blinken arrived in Nairobi on Wednesday for his first Africa trip following the COP26 climate talks in Glasgow, where poorer nations called on rich governments to do more to help them combat climate change.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/u-s-top-diplomat-blinken-to-visit-kenya-nigeria-senegal-next-week/">U.S. top diplomat Blinken to visit Kenya, Nigeria, Senegal next week</a></h3>



He praised Kenya for getting 90% of its energy from renewable sources, saying it presented a global model.



Omamo said Kenya looked forward to working with the United States to plug the climate financing gap, saying that poorer countries who did not create the problem paid the greatest price for global warming.



<h2 class="wp-block-heading" id="h-violence-in-nigeria">VIOLENCE IN NIGERIA</h2>



On Thursday, Blinken will visit Nigeria &#8211; Africa&#8217;s largest oil exporter &#8211; to meet President Muhammadu Buhari, whose government is battling an Islamist insurgency in the northeast and mass kidnappings by armed gangs in the north and northwest.



The two are expected to discuss possible security assistance from the United States, a source in the Nigerian presidency told Reuters. In July, Nigeria received its first six A-29 Super Tucano planes four years after the United States agreed to sell the light attack aircraft to fight insurgents.



But analysts say Buhari has made little progress tackling corruption that has eroded the country&#8217;s infrastructure or abuses by the security services.



Blinken&#8217;s final leg is Senegal, considered one of Africa&#8217;s most stable democracies, where the focus will be on leaders and female entrepreneurs.



(Editing by Andrew Cawthorne and Angus MacSwan)

56JOKMVMBBLNJMPMP7PQKIODEU

Security, climate dominate as U.S. Secretary of State kicks off Africa tour

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="529" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/M57VIVG4IFPQ7H4S4ZCO55N4UI-820x529.jpg" alt="" class="wp-image-413459" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/M57VIVG4IFPQ7H4S4ZCO55N4UI-820x529.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/M57VIVG4IFPQ7H4S4ZCO55N4UI-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/M57VIVG4IFPQ7H4S4ZCO55N4UI-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/M57VIVG4IFPQ7H4S4ZCO55N4UI-768x495.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/M57VIVG4IFPQ7H4S4ZCO55N4UI.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Smoke billows from a chimney at a coking factory in Hefei, Anhui province October 2, 2010. REUTERS/Stringer/File Photo</figcaption></figure>



SYDNEY, Nov 15 (Reuters) &#8211; An international agreement to reduce coal use dragged miners&#8217; shares lower on Monday, but tight supply of the commodity provided a floor for a sector that has chalked up huge gains this year.



<a href="https://www.reuters.com/business/cop/un-climate-negotiators-go-into-overtime-save-15-celsius-goal-2021-11-13">U.N. climate talks in Glasgow ended on Saturday with a deal targeting fossil fuel use</a>. <a href="https://www.reuters.com/business/cop/how-dispute-over-coal-nearly-sank-glasgow-climate-pact-2021-11-14">Wording was softened to call for a &#8220;phase down&#8221; rather than &#8220;phase out&#8221; of coal</a> after lobbying from India, among others.



Big miners China Shenhua Energy and Yanzhou Coal fell 1% and 2.4% respectively in Hong Kong, where the broader stock market edged up slightly. An index of mainland-listed miners fell about 1%. Coal stocks in other regions also came under pressure.



&#8220;Climate activists will undoubtedly frame COP26 as failing on coal (and fossil fuels). We look past this frustration (and current energy market conditions) and see ongoing incremental consensus in the need to reduce demand for fossil fuel,&#8221; said Cowen analyst John Miller. .



In Indonesia, the world&#8217;s biggest coal exporter, declines were exacerbated by surging production in China, a top customer. No. 1 miner Bumi Resources fell 5.7%, while Adaro Energy and Indika Energy tumbled 4.5% and 7% respectively.



Shares in Australia-listed thermal coal miner Whitehaven Coal fell about 1.6% and rival New Hope about 1% in a slightly firmer broad market.



<h2 class="wp-block-heading" id="h-cash-generator">&#8216;CASH GENERATOR&#8217;</h2>



Metallurgical coal miners South32 and Coronado Global Resources dropped some 1.4% and 4% respectively. The moves extend a recent pullback that has taken the edge off huge year-to-date gains for Whitehaven, South32 and New Hope amid a global energy crunch. They are each up more than 40%.



&#8220;The reality is that coal is going to be used during the next decade or so. It&#8217;s still going to be a cash generator,&#8221; said Mathan Somasundaram, chief executive officer at Sydney-based research firm Deep Data Analytics.



China, the world&#8217;s biggest producer and consumer of coal, churned out its highest tonnage in more than six years last month, official data showed, which helped to knock near-term spot prices on Monday.



The Glasgow deal has elicited promises of future cuts to use, resolved rules for carbon markets and also takes aim at fossil fuel subsidies &#8211; all of which could speed up the transition to other energy sources.



Elsewhere in Asia, Seoul-listed mine owners and suppliers KEPCO, LX International and Doosan Heavy traded between a fall of 2.5% and a gain of 0.6% in a broader market that was up 1%. Thai miner Banpu fell 2.7%. Shares in Coal India slid 4.3%, also weighed down by soft quarterly results. NTPC edge up.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/cop26-message-to-business-clean-up-to-cash-in/">COP26 message to business: clean up to cash in</a></h3>



Among other mining stocks, Anglo American , the world&#8217;s third largest exporter of metallurgical coal, fell around 1% in London, while Sasol, which operates coal mines in South Africa, was steady.



George Boubouras, head of research at K2 Asset Management in Melbourne, said under-investment in coal projects would probably keep spot prices elevated from a historical perspective but the fuel&#8217;s likely eventual demise might limit gains for stocks.



&#8220;High thermal coal prices&#8230; will not necessarily translate into higher share prices to the same degree,&#8221; he said. Oil fell around 1% and gas a touch firmer in European hours and stocks in the sector were broadly steady.



Some investors see uranium filling some of the gap left as energy firms retreat from coal. This has helped uranium futures to soar along with other commodities in recent weeks.



Large miners have rallied, lifting Canada&#8217;s Cameco to a decade high last week and Kazakhstan&#8217;s Kazatomprom to a record.



(Reporting by Tom Westbrook; Additional reporting Joori Roh in Seoul, Muyu Xu in Beijing, Chandini Monnappa in Bengaluru and Melanie Burton in Melbourne and Danilo Masoni in Milan; Editing by Edwina Gibbs)

M57VIVG4IFPQ7H4S4ZCO55N4UI

Coal stocks lose ground after Glasgow climate deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="522" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/TOWBLAQA4ZPYBE36SSM7M7B4W4-820x522.jpg" alt="" class="wp-image-413447" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/TOWBLAQA4ZPYBE36SSM7M7B4W4-820x522.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/TOWBLAQA4ZPYBE36SSM7M7B4W4-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/TOWBLAQA4ZPYBE36SSM7M7B4W4-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/TOWBLAQA4ZPYBE36SSM7M7B4W4-768x489.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/TOWBLAQA4ZPYBE36SSM7M7B4W4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Delegates talk during the UN Climate Change Conference (COP26) in Glasgow, Scotland, Britain November 13, 2021. REUTERS/Yves Herman/File Photo</figcaption></figure>



GLASGOW, Nov 14 (Reuters) &#8211; The hard-fought Glasgow Climate Pact sent a clear message to global companies and executives: reassess business strategies and carbon footprints to reap monetary rewards, or lag and risk losses.



<a href="https://www.reuters.com/business/cop/un-climate-negotiators-go-into-overtime-save-15-celsius-goal-2021-11-13">The deal annou</a>nced late Saturday, ending two weeks of fraught negotiations between nearly 200 nations, <a href="https://www.reuters.com/business/cop/factbox-whats-glasgow-climate-pact-2021-11-13">pushes countries to do much more to curb climate-warming carbon emissions</a>. That pressure will increasingly be imposed on investment and industry to bring emissions associated with their businesses in check.



<a href="https://www.reuters.com/business/cop/outline-carbon-markets-deal-emerges-un-climate-summit-2021-11-13">The Glasgow pact also delivered a breakthrough on rules for governing carbon markets</a>, and took aim at fossil fuel subsidies.



Beyond the political negotiations, the Glasgow gathering brought in many of the world’s top CEOs, mayors, and leaders in industries, including finance, construction, vehicles and aviation, agriculture, renewable energy and infrastructure.



&#8220;COP26 has unleashed a wall of new private sector money,&#8221; said Gregory Barker, executive chairman at energy and aluminium company EN+ Group, by email. &#8220;For business everywhere, one thing is certain, big change is coming and coming fast.&#8221;



Two separate investment conferences on the side of the U.N. climate summit touted profits to be made for those who meet environmental conditions for the cash. <a href="https://www.reuters.com/business/cop/mission-coalition-cop26-spawns-confusing-clusters-2021-11-05">Many deals were announced</a>, including plans for a standards body to scrutinise corporate climate disclosures that will challenge boardrooms.



<h2 class="wp-block-heading" id="h-goal-of-1-5-degrees">GOAL OF 1.5 DEGREES</h2>



With the pact reaffirming a global commitment to containing global warming at 1.5 degrees Celsius (2.7 Fahrenheit), along with &#8220;accelerated action in this critical decade,&#8221; boards can expect tougher national pollution policies across all sectors, particularly in transport, energy and farming.



That will leave the companies without a plan to adapt to a low-carbon economy looking exposed, U.N. High-level Climate Action Champion Nigel Topping said.



&#8220;If you haven&#8217;t got a net-zero target now, you&#8217;re looking like you don&#8217;t care about the next generation, and you&#8217;re not paying attention to regulations coming down the pipe,&#8221; Topping said. &#8220;Your credit rating&#8217;s at risk, and your ability to attract and keep talent is at risk.&#8221;



Adding to the pressure, <a href="https://www.reuters.com/business/cop/wrapup-politicians-exit-cop26-130tn-worth-financiers-take-stage-2021-11-03">financial services firms with around $130 trillion in assets have pledged to align their business with the net-zero goal</a>. Increasingly, they will lean on the boards of corporate climate laggards.



<h2 class="wp-block-heading">CARBON MARKETS</h2>



The summit’s deal resolving rules for the global trading of carbon offset credits was applauded by business for its potential to <a href="https://www.reuters.com/business/cop/dollars-dirt-big-ag-pays-farmers-control-their-soil-bound-carbon-2021-10-25">unlock trillions of dollars in finance to help countries and companies manage the energy transition</a>.



Observers said the agreed <a href="https://www.reuters.com/business/cop/toughest-tasks-un-climate-talks-article-6-co2-markets-2021-10-26">rules addressed the biggest worries and would likely prevent most abuses of the system</a>.



The non-profit We Mean Business coalition, which works with corporates on climate, said the rules &#8220;have the potential to unleash huge investments&#8221;.



By putting in place the framework for a global trading system, the pact also brings the world closer to having a worldwide price on carbon &#8211; demanded as a priority by investors and companies before the talks.



A global price would allow companies to more accurately assess the value of assets, as well as costly externalities &#8211; driving more climate-aligned decisions on anything from where to build factories to which companies to buy or products to launch.



With carbon offsets tied to efforts to preserve nature, <a href="https://www.reuters.com/business/environment/over-100-global-leaders-pledge-end-deforestation-by-2030-2021-11-01">more than 100 global leaders during the conference pledged to halt and reverse deforestation by 2030</a>. Companies and investors also said they would ramp up forest-protection efforts.



<h2 class="wp-block-heading">FOSSIL FUELS</h2>



For the first time, the deal saw countries acknowledge that fossil fuels were the main cause of climate change, and called for an end to &#8220;inefficient fossil fuel subsidies&#8221;. It did not say how to determine if subsidies could be justified.



It singled out coal, the most polluting of the fossil fuels, though at the 11th hour switched from urging a &#8220;phase out&#8221; in coal-fired power to a &#8220;phase down&#8221;.



The change in wording, following objections by India, China and other coal-dependent nations, was seen by developing economies as an acknowledgement that industrialised nations are mostly responsible for the climate problem. But many in wealthy economies worried it could mean years more of unbridled emissions as developing nations grow.



Calling the move &#8220;dangerous and damaging for the climate,&#8221; Germany’s biggest industry association warned it could hobble its industries as they are forced to abandon the cheap fossil fuel international competitors can still use.



&#8220;This concentrates emissions in countries with less stringent climate measures and unilaterally wears on companies that already need to cope with large financial burdens,&#8221; the Federation of German Industry said Sunday.



Still, the very mention of coal and fossil fuels in the Glasgow pact was hailed as progress in U.N. climate talks, which for decades have skirted the issue.



Saker Nusseibeh, chief executive of the international business of asset manager Federated Hermes said the result would put pressure on some oil companies that were &#8220;not as forthcoming as others&#8221;.



He also said &#8220;coal companies will have to think very carefully about their future plans&#8221;.



Meanwhile, the world&#8217;s biggest economies are driving the shift.



The top two, the United States and China announced plans to cooperate on climate action, including bringing down emissions of the potent greenhouse gas methane.



Elsewhere, six countries, including France, joined the Beyond Oil and Gas Alliance, committing to halting new oil and gas drilling.



<a href="https://www.reuters.com/business/cop/19-countries-plan-cop26-deal-end-financing-fossil-fuels-abroad-sources-2021-11-03">Twenty countries including the United States and Canada pledged to halt public financing of fossil fuel projects overseas</a>, and 23 nations promised to phase out coal-fired power.



A number of companies in sectors including transport are already betting big on increased electrification, with U.S. <a href="https://www.reuters.com/business/cop/six-major-carmakers-agree-phase-out-fossil-fuel-vehicles-by-2040-uk-says-2021-11-10">car makers Ford and General Motors among those saying they will phase out fossil fuel vehicles by 2040</a>.



The Glasgow talks have &#8220;<a href="https://www.reuters.com/business/cop/economics-must-step-up-green-challenge-says-lses-stern-2021-11-05">drawn attention to the great opportunities arising from a different form of development – stronger, cleaner, more efficient, more resilient and more inclusive</a>,&#8221; said climate economist Nicholas Stern. The breakthroughs &#8220;seek to make clean and green production competitive in all these areas by 2030&#8221;.



(Reporting by Simon Jessop, Jake Spring and by Ross Kerber in Boston; Additional reporting by Victoria Waldersee in Berlin; Writing by Katy Daigle; editing by Barbara Lewis)

TOWBLAQA4ZPYBE36SSM7M7B4W4

COP26 message to business: clean up to cash in

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Y52N4OBK4JIT7E4HLE7VCPBXOQ-820x545.jpg" alt="" class="wp-image-413428" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Y52N4OBK4JIT7E4HLE7VCPBXOQ-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Y52N4OBK4JIT7E4HLE7VCPBXOQ-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Y52N4OBK4JIT7E4HLE7VCPBXOQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Y52N4OBK4JIT7E4HLE7VCPBXOQ-768x510.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/Y52N4OBK4JIT7E4HLE7VCPBXOQ.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Kaombo Norte floating oil platform is seen at night off the coast of Angola, November 8, 2018. REUTERS/Stephen Eisenhammer/File Photo</figcaption></figure>



DUBAI, Nov 12 (Reuters) &#8211; Several African countries plan to exploit their oil and gas reserves to tackle poverty and energy shortages, representatives gathered in Dubai said this week in the face of pressure to end fossil fuel extraction to curb global warming.



Officials and industry executives stressed that Africa as a whole has a relatively small carbon footprint, which Statista estimated accounted for 3.7% of global CO2 emissions in 2020.



&#8220;We want to develop our resources as Africa, just as our brothers in the West have done,&#8221; John Munyes, Kenya&#8217;s minister of petroleum and mining, told the Africa Oil Week conference in Dubai, which coincided with the second week of the United Nations <a href="https://www.reuters.com/business/cop">COP26 climate summit</a> in Glasgow, Scotland.



&#8220;Much of Kenya is renewables, we just want to tap into what God has given us: hydrocarbons,&#8221; he added.



Across the African continent, where some 600 million people lack electricity, both well-established and emerging producers are seeking to accelerate hydrocarbon extraction.



&#8220;We understand that we have to mitigate the damage to the planet. That&#8217;s why we have signed up to the energy transition,&#8221; Thomas Camara, Ivory Coast&#8217;s minister of mines, petroleum and energy, said.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/south-africa-to-call-on-rich-nations-to-do-more-at-cop26/">South Africa to call on rich nations to do more at COP26</a></h3>



&#8220;But for our African nations, we have to ensure that our populations have access to energy… We will not turn our back to oil and energy companies so we can ensure the happiness &#8211; and even the existence &#8211; of our populations.&#8221;



Some two dozen African countries pitched their energy sectors to investors during the event in Dubai.



OPEC member Angola, where production peaked in 2008 and has been steadily declining for the past half-decade, plans to develop more fields including through licensing rounds for onshore blocks in 2023 and offshore blocks in 2025.



Output in 2031 is projected to slightly exceed last year&#8217;s roughly 1.3 million barrels a day.



Ghana, which discovered oil in 2007 and began extraction at the end of 2010, will channel investments to oil and gas development to then use the proceeds to invest in infrastructure and social welfare such as healthcare and education, its deputy energy minister, Andrew Egyapa Mercer, said.



&#8220;We believe strongly in oil and gas, and in particular gas&#8221; to ensure reliable energy baseloads, he added.



<h3 class="wp-block-heading" id="h-clock-ticking">CLOCK TICKING</h3>



Western oil and gas companies looking to develop deposits in Africa face growing pressure over environmental concerns, which are leading them to accelerate plans as the world transitions to renewable forms of energy such as solar and wind.



&#8220;We have to come up with processes that enable us to convert a discovery into production as quickly as we can, because the clock is ticking. The clock is ticking in terms of the energy transition,&#8221; said Paul McCafferty, senior vice president Africa at Norwegian energy major Equinor.



Industry executives said among the challenges they now face was securing sufficient capital for hydrocarbon projects.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2021/deliver-on-promises-developing-world-tells-rich-at-climate-talks/">Deliver on promises, developing world tells rich at climate talks</a></h3>



Top oil exporters Angola, and to a lesser extent Nigeria, are facing crude production declines due to lack of investment in expensive deepwater oil fields, partly because oil companies are allotting less funding to fossil fuels.



Africa Oil Corp CEO Keith Hill said the energy transition process needs to be balanced and that it was more of a 30-year process than a five or 10-year one.



For Uganda, hydrocarbons are necessary to reshape the economy, its energy minister said, and it is counting on a pipeline through Tanzania to the Indian Ocean coast that will help Uganda export its crude.



&#8220;We have a duty to provide jobs for our people. We have a duty to make sure that the distribution of electricity goes to the last person,&#8221; Energy Minister Ruth Nankabirwa said.



(Reporting by Yousef Saba and Raya Jalabi; Writing by Ghaida Ghantous and Yousef Saba; Editing by Alexander Smith)

Y52N4OBK4JIT7E4HLE7VCPBXOQ

Africa has sights set on hydrocarbon haul despite global shift

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106972011-16363738292021-11-08t022515z_1768691005_rc22qq9bb536_rtrmadp_0_climage-un-tuvalu.jpeg" alt="" class="wp-image-413333" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106972011-16363738292021-11-08t022515z_1768691005_rc22qq9bb536_rtrmadp_0_climage-un-tuvalu.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106972011-16363738292021-11-08t022515z_1768691005_rc22qq9bb536_rtrmadp_0_climage-un-tuvalu-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/106972011-16363738292021-11-08t022515z_1768691005_rc22qq9bb536_rtrmadp_0_climage-un-tuvalu-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Tuvalu’s Minister for Justice, Communication &amp;amp; Foreign Affairs Simon Kofe gives a COP26 statement while standing in the ocean in Funafuti, Tuvalu November 5, 2021. Tuvalu Foreign Ministry | via Reuters</figcaption></figure>



LONDON — The foreign minister of Tuvalu, an island in the South Pacific, has filmed a speech to climate summit COP26 standing knee-deep in the ocean to show how the nation is vulnerable to global warming.



Simon Kofe’s will deliver the speech to the event on Tuesday, via a video message that shows him at a lectern in a suit and tie in the water off the island nation’s capital, Funafuti.



“The statement juxtaposes the COP26 setting with the real-life situations faced in Tuvalu due to the impacts of climate change and sea level rise and highlights the bold action Tuvalu is taking to address the very pressing issues of human mobility under climate change,” Kofe explained ahead of the broadcast of his video message, per a Reuters report.



Tuvalu, which is about 2,500 miles southwest of Hawaii, is made up of nine small islands and has a population of around 12,000. Its tourism website, Timeless Tuvalu, warns that by the end of the century it could be under water. School pupils are learning about the effects of climate change and “could be the last generation of children to grow up in Tuvalu,” the website states, adding that many people have already emigrated to New Zealand.



<h3 class="wp-block-heading" id="h-read-more-south-africa-to-call-on-rich-nations-to-do-more-at-cop26">Read more: <a href="https://www.cnbcafrica.com/2021/south-africa-to-call-on-rich-nations-to-do-more-at-cop26/">South Africa to call on rich nations to do more at COP26</a></h3>



According to the World Bank, western Pacific ocean levels have risen at two to three times faster than the global average. They are forecast to rise between 0.5 and 1.1 meters before the end of the century.



The leaders of island nations have already made strong pleas at COP26 in Glasgow, Scotland, with Maldivian President Ibrahim Mohamed Solih stating last week: “Our islands are slowly being eaten by the sea, one by one. If we do not reverse this trend, the Maldives will cease to exist by the end of the century.”



Mia Mottley, prime minister of Barbados, said in a speech that global warming of 2 degrees Celsius “is a death sentence for the people of Antigua and Barbuda, for the people of the Maldives, for the people of the Dominica and Fiji, for the people of Kenya and Mozambique, and yes, for the people of Samoa and Barbados.”



&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CNBC’s Sam Meredith contributed to this report.

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How South Africa’s recent floods compel climate action￼

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How South Africa’s recent floods compel climate action