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The World Court will mark the future of climate litigation
On Wednesday, the highest court of the United Nations will issue an opinion that could determine the future course of climate action around the globe. The 15 judges of The Hague's International Court of Justice have issued a non-binding advisory opinion. Legal experts claim that it has legal and political significance and future climate cases will be unable ignore the opinion. Payam Akhavan is a professor of international law. She said, "The advisory opinion was probably the most significant in the history the court as it clarifies the international law obligations that are necessary to prevent catastrophic harm which would threaten the survival of humanity." Akhavan, who represents low-lying island states, represented them in two weeks of hearings at the ICJ (also known as the World Court) last December. Over a hundred countries and international organisations expressed their opinions on the two questions that the U.N. General Assembly asked the judges about. The questions were: What are the obligations of countries under international law in protecting the climate against greenhouse gas emissions? And what are the legal implications for countries who harm the climate system. The judges heard from wealthy countries in the Global North that they should base their decisions on existing climate treaties. This includes the 2015 Paris Agreement which is largely non-binding. Small island states and developing nations argued that stronger, and in some cases legally-binding, measures were needed to reduce emissions, and that the largest emitters of greenhouse gases, which are climate-warming, should provide financial assistance. The PARIS Agreement and the Upsurge in Litigation At the end of 2015 U.N. talks held in Paris, over 190 countries pledged to continue efforts to limit global heating to 1.5 degrees Celsius. The agreement failed to reduce global greenhouse gas emissions. The U.N. said in its latest "Emissions Gap report" late last year that the current climate policies would result in a global warming of over 3 C (5.4 F), above pre-industrial levels, by 2100. Climate-related litigation is intensifying as campaigners try to hold governments and companies accountable. According to figures released by the Grantham Research Institute for Climate Change and the Environment in London, nearly 3,000 lawsuits were filed in June across 60 countries. The results so far have been mixed. In May, a German court threw out the case between a Peruvian farm and German energy giant RWE. But his lawyers and environmentalists said that this case, which had dragged on over a decade, still represented a victory in climate cases and could inspire similar lawsuits. In a recent advisory opinion, the Inter-American Court of Human Rights (which has jurisdiction over 20 Latin American countries and Caribbean islands) said that its members should work together to combat climate change. The campaigners believe that Wednesday's ruling should be a turning-point and, even if it is only advisory, the decision should determine that U.N. members have violated the international law that they signed up to enforce. The court has confirmed that inaction on climate change, particularly by major emitters is not a failure of policy but a violation of international law, said Vishal Prasad of Fiji, one of the students who lobbied Vanuatu, in the South Pacific Ocean, to take the case before the ICJ. Lawyers say that although it is technically possible to ignore a ruling of the ICJ, countries tend to be reluctant to do so. This opinion applies binding international law to which all countries have committed themselves. This opinion will be cited by national and regional courts as persuasive authority, and will guide judgments that have binding consequences in their legal systems," said Joie Chowdhury. The court will begin reading its opinion at 3 pm (1300 GMT). (Reporting by Stephanie van den Berg, additional reporting by Ali Withers in Copenhagen; editing by Barbara Lewis)
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Nikkei rally boosts Asian shares after Trump announces Japan Trade Deal
Japanese shares led a rally in the Asian share markets on Wednesday, after U.S. president Donald Trump announced that he had signed a trade agreement with Japan. This fueled hopes for more deals to follow. It also offset mixed U.S. earnings which highlighted the drags of higher tariffs. Trump announced late Tuesday a trade agreement with Tokyo, which he claimed will see Japan invest $550 billion in the United States while paying a reciprocal 15% tariff. The deal came after an agreement reached with the Philippines, where the U.S. will collect a tariff of 19% on all imports. Norihiro Yamaguchi is a senior Japan economist with Oxford Economics. In the short term, I believe that a reduced level of uncertainty will be welcome in the equity markets. The global trade policy will remain uncertain, so today's outcome will have little impact on the real economy. On Wednesday, the U.S. President also announced that representatives of the European Union will be coming to trade negotiations. Treasury Secretary Scott Bessent announced that in another positive development U.S. officials and Chinese officials would meet next week in Stockholm to discuss an extension of the August 12 deadline to negotiate a trade agreement. The Nikkei soared 1.7% Wednesday, as automakers' shares surged. Mazda Motor rose 12%, while Toyota Motor increased 10%. The MSCI broadest Asia-Pacific share index outside Japan grew by 0.2%, boosted by stronger openings in Australia and South Korea. The yen initially rose on the news but ended up flat at 146.68 to the dollar. In Asia, Nasdaq and S&P futures both gained 0.2%. Overnight, Wall Street ended mixed as investors assessed the results of a variety of companies and signs that Trump’s trade war has impacted corporate profit margins. General Motors fell 8.1% after it reported that tariffs had taken a $1 billion toll on its quarterly results. Investors now await the results of Tesla and Google parent Alphabet, the Magnificent Seven stocks that drove much of the recent market rally driven by AI optimism. The dollar index, which is a measure of the value of the US currency, was unchanged at 97.45 versus its major counterparts, after slipping 0.4% overnight. This marks the third consecutive day that the dollar index has declined. The benchmark 10-year U.S. Treasury Yields increased by 2 basis points, to 4.3579 after falling 3 bps overnight. Trump continued to criticize Federal Reserve Chair Jerome Powell, for not reducing interest rates. Bessent, however, said that Powell did not need to step down right away. Bessent said that the Fed's independence in monetary policy was threatened by the "mandate creep" it has taken into other areas. He called on the U.S. Central Bank to review these operations. The spot gold price remained at $3.429 per ounce.
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India and UK Free Trade Agreement: Key Facts
After three years of negotiation, Britain and India will sign a formal free trade agreement during the visit by Prime Minister Narendra Modi to the UK on Thursday. After three years of negotiations, the British Parliament and India's Federal Cabinet will need to approve the deal. This is likely to happen within a year. The following are the main points of the Agreement: Tariff Cuts India reduces tariffs on almost 90% of UK products Whisky and Gin levy will fall from 150% down to 75% then to 40% within a decade Tariffs on automobiles to drop from 100% plus to 10% under quota Other goods, such as cosmetics, medical equipment, salmon, chocolates and biscuits, will be subject to a reduction in tariffs According to the Indian Commerce Ministry, UK will offer duty-free entry to nearly 100% of Indian items BENEFITS TO INDIAN SECTORS Indian exports like textiles, footwear and gems & jewelry, furniture, auto parts, chemicals, machinery, sporting goods, and other items are likely to be duty-free, compared to the current UK levels of between 4%-16%. You can also find out more about According to the Indian commerce ministry, UK will grant temporary access to visitors, including businessmen and contract service providers, as well as yoga instructors, chefs, and musicians. Indian workers and their employers working temporarily in Britain will not be required to pay social security contributions for the next three years. This is estimated to save around 40 billion rupees (approximately $463 million) per year. UK FIRMS TO GET ACCESS TO INDIAN GOVERNMENT PROCUREMENT India will allow British suppliers to participate in non-sensitive government tenders within the federal government. The threshold is 2 billion rupees. According to estimates by the UK government, this deal will allow UK companies to access India's public sector procurement market. This market consists of around 40,000 tenders, with an estimated value of 38 billion pounds per year. BOOSTER TO UK ECONOMY According to British estimates, the trade pact will increase UK GDP in the long-term by 4.8 billion pounds ($6.5billion) per year, as consumers gain access to cheaper Indian clothing, footwear, and food products. INDIAN FIRMS WILL BENEFIT Duty-free access to the UK is likely to benefit Indian textile and clothing manufacturers like Welspun India. Arvind Ltd., Raymond. Vardhman. According to industry analysts, footwear manufacturers such as Bata India and Relaxo, as well automakers like Tata Motors Mahindra Electric, Bharat Forge, could benefit. UK COMPANIES Access to the fast-growing Indian markets could be beneficial for UK companies including Diageo, Aston Martin, Jaguar Land Rover and Tata owned Jaguar Land Rover.
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Vale's Iron Ore Production Up 4% With Record Q2 at Key Mine
The Brazilian miner Vale reported that it produced 83.6 millions metric tons (metric tons) of iron ore during the second quarter. This is up 3.7% compared to a year ago, according to the company. Vale's output and sales report said that the growth was mainly due to a second-quarter record set at the S11D project in northern Brazil. This is Vale's top iron ore producing mine. It also cited "strong performance" from its Brucutu mining operation located in the southeast. Vale stated that the combination of the new assets ramping-up and the greater operational reliability are supporting a stronger adherence to 2025 production plans. Iron ore production is expected to range between 325 and 335 millions tons this year. Citi analysts, including Alexander Hacking, said Vale had a "solid" quarter and noted that the firm was "on track to achieve (its) guidance". They added, "We expect that the stock will trade in line tomorrow." Vale's iron ore sales fell by 3.1% in the third quarter. The company's realized average price for iron ore was $85.1 per ton. This represents a 13.3% drop. Vale said that its portfolio optimization strategy, which prioritizes its medium-grade products, was responsible for the decline in sales. It also cited stock replenishment. BASE METALS Vale's production of copper rose by nearly 18% during the period, to 92,600 tonnes. It attributed this to the higher grades at Brazil's Sossego facility, the nominal capacity at the Salobo complex in Brazil and the ramp up at the Voisey's Bay Project in Canada. Vale reported that copper sales increased 17% to 89,000 tonnes. Vale attributes the increase in nickel production, up to 40,300 tonnes, to a better performance by its Canadian assets, its Onca Puma project in Brazil and "lower maintenance activities". Nickel sales increased by nearly 21%, to approximately 41 400 tons. Vale will release its full second quarter earnings on July 31, 2018. Reporting by Andre Romani from Sao Paulo, and Marta Nogueira from Rio de Janeiro. Editing by Kyrry Madry and Christopher Cushing.
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Ampol lowers half-year earnings forecast due to supply chain impact
Ampol Ltd, Australia's largest fuel retailer, forecast lower half-year earnings on Wednesday as the sea-freight situation impacted its supply chains. It also reported a 1,1% decline in its Lytton Refinery's second-quarter margins. The company anticipates that first-half earnings will be A$400m ($262.04m) on a replacement costs basis, compared to A$502.1m a year ago. The company's second-quarter refinery margin in Queensland at its Lytton Refinery, one of its key assets, dropped to $8.71 a barrel, from $8.81 a barrel last year. The Queensland refinery has suffered from a number of operational disruptions, including planned maintenance, and loss of production due to Cyclone Alfred. This, combined with the weak margins of Singapore's refining industry, has impacted the refinery's margins and output. The refinery margin, which is the difference between crude oil prices and refined petroleum product prices, increased in the second half of the year. The Sydney-based company reported a second-quarter sales volume of 6.304 million liters, down 4.7% compared to a year ago. The second-quarter output of the Lytton refinery was 1,406 ML. This compares to 1,420ML recorded a year ago. The company will report its financial results for the first half of the year on August 18. (1 Australian dollar = 1.5265 dollars) (Reporting and editing by Adwitiya Shrivastava in Bengaluru, Sherin Sunny)
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The central banks are being told to prepare themselves for a climate shock on the labour market
A report released on Wednesday by London School of Economics warns that central banks could be blindsided by climate-driven shocks in global labour markets, unless they change their approach to monetary policies. Climate change will lower productivity in many sectors, including agriculture, construction, and those exposed to heat, even in the most optimistic of scenarios, where global warming is limited between 1.5 and 2 degrees. The Centre for Economic Transition Expertise's (CETEx), in a report, urged the monetary authorities to pay more attention to environmental risks. This includes natural disasters and the effects of the green transformation. Joe Feyertag is the senior policy fellow and author of this report. He said, "Our research shows central banks should integrate environmental employment risk into their policies and operation." The European Central Bank (ECB) and the Bank of England (BoE) have both highlighted the potential dangers of climate change, including its impact on growth, inflation and bank health. The U.S. Federal Reserve - in many ways, the most influential central banking institution in the world - withdrew earlier this year from a network of authorities focused on climate change, raising doubts about its commitment to these issues. The report concluded that the countries with high pollution levels are most at risk of being affected by the transition away from these industries. In contrast, the poorer areas of Africa, Asia, and Latin America were more at risk from physical risks such as droughts and floods. The study found that these divergent pressures combined with demographic changes and tighter immigration policy could further strain the labour markets of developed countries, while easing them in those of emerging countries. Feyertag warned that disruptions to the labour market could increase social inequalities in particular in countries with rigid labor markets All other factors equal, inflation tends to be higher on a tighter labor market. A low productivity can also lead to high inflation. Feyertag examined 114 central banks mandates, and only 15 of them, such as the Bank of England's, specifically referenced employment as an objective, either primary or secondary. The Reserve Bank of Australia and the Federal Reserve Bank of America have made jobs a central policy objective. These banks could take more aggressive action to mitigate the impact of climate change on the labor market. Feyertag stated that "if their mandate permits, (central bankers) could take more proactive steps to stimulate the demand for workers in low-carbon or climate resilient employment opportunities and smooth this path." Reporting by Francesco Canepa. Mark Potter edited the article.
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US energy chief: Sanctioning Russian oil could end Ukraine conflict
On Fox News, U.S. Energy Sec. Chris Wright stated on Tuesday that sanctions against Russian oil could be used to end the Ukraine War. Donald Trump stated this month that Washington would impose 100% tariffs on Russian oil buyers and other sanctions if Moscow did not agree to a significant peace agreement with Ukraine by the deadline of early September. Wright stated in an interview with Fox News' Special Report with Bretbaier that "Russia is under enormous pressure." Wright said, "That is the most pressure you can apply to them." Wright says that the U.S. has the top position in the world for oil and gas production, which allows it to take actions previously unthinkable. He said, "We can do things we couldn't before." Despite this position, Trump's administration has yet to impose major oil sanctions against Russia. Instead, it prefers to impose these sanctions on OPEC producer Iran, since he took office a second-time in January. (Reporting and editing by Leslie Adler, Jamie Freed and Timothy Gardner)
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North Dakota's rig count drops by 3 in a month, to 29 in July. State regulator says
The state regulator reported on Tuesday that North Dakota oil drillers currently operate 29 rigs compared to 32 in June. Operators continue to use more efficient drilling technology. The ability to drill more efficiently allows operators the opportunity to extract more oil with less capital. Nathan Anderson, Director of the Department of Mineral Resources in Washington State said that the decline in rig counts does not mean there is less rock being drilled. The state Industrial Commission reported that oil production in North Dakota dropped 61,000 barrels per day (bpd) in May to 1.1million bpd. The price environment in May and April led some operators to reduce production in certain areas of the state, Anderson explained. He added that lower well completions in April impacted production in May. Anderson stated that June production is likely to be similar to the output in May. However, July will see an increase. Anderson said that operators who curtailed their production have now begun to bring these wells online. In June, 65 projects were completed. This is down from the 74 that were completed in May. However, this is up from only 43 in April. According to LSEG data, U.S. crude oil futures were on average $63 per barrel in April. This is down from $68 in march. The oil prices dropped in April, after U.S. president Donald Trump announced a range of trade tariffs. This stoked fears of a recession as well as a decline in fuel demand. According to the state regulator, there are 13 hydraulic fracturing teams in the state. This number is steady month-over-month. The state regulator reported that the price of Bakken oil at Clearbrook in Minnesota was 75 cents higher per barrel than West Texas Intermediate. This is the same as the previous month. North Dakota, which is home to the Bakken Oilfield, is the third largest oil producing state. (Reporting and editing by Leslie Adler, David Gregorio and Georgina McCartney from Houston)
Nigeria partners with S&P Global to develop West African Petroleum Price Index
Nigeria's downstream regulator announced on Tuesday that it has partnered with S&P Global Commodity Insights in order to create a regional benchmark price for refined petroleum products across West Africa.
The initiative was launched in Nigeria's capital Abuja at the West African Refined Fuel Conference. It aims to create locally-specific indices for petrol, diesel and aviation fuel.
West Africa is an important oil and gas producing region, as well as a refining center that's growing. Farouk Ahmad, the head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority, explained that it depends on posted prices from global benchmark markets.
Ahmed stated that "although these benchmarks may be globally accepted, they often do not reflect the unique characteristics of supply chains, market dynamics, and economic realities on the African continent."
He added that the partnership would improve price transparency and support investment decisions, as well as enhance energy security in the region.
OPEC's Nigeria, Africa’s largest crude oil producer, has implemented reforms in its downstream sector to position itself as a regional trade hub.
Last year, the Dangote refinery, which has a refining capacity up to 650,000 barrels a day, began operations in Lagos. Since then, it has increased production and sought new markets.
Nigeria produces about 31% of all refined fuels traded in West Africa. This share is expected to increase as more refineries come on line. (Reporting and editing by Joe Bavier; Isaac Anyaogu)
(source: Reuters)