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Sanchez, Sanchez: Spain wants to coordinate climate change agreement with France and Portugal
The Spanish Prime Minister Pedro Sanchez announced on Monday that his government will coordinate a number of climate-change measures with neighboring countries as a response to recent weather disasters such as the massive wildfires in August. The Civil Protection Authorities declared the end of one of the worst wildfire waves recorded in the nation on Sunday. More than 300,000 acres (740,000 hectares) of land had been burned in less than a week. Nearly 36,000 people were evacuated. Sanchez called for a "state-pact" to combat climate change in response to recent fires. This would involve all major political forces, including political parties, local and regional authorities, unions, activists and scientists. He predicted measures to prevent fires, new water infrastructures to reduce floods, limitations on housing permits in areas that are prone to wildfires or floods, and new laws on labour to protect workers from heatwaves. Sanchez, in a Madrid speech, said: "There can be no more excuses or pauses. It is time to accelerate the ecological transition." The government plans to coordinate its new measures with those of its European neighbors. He said: "We will ask the Portuguese and French government to join us in this state pact, and we will tell EU Commission not to stop the ecological transition." Sanchez's initiative will be difficult to implement, as his socialist-led government does not have a majority of seats in the parliament. Several parties such as the conservative People's Party(PP), the far right Vox or the far left Podemos are already opposed to the idea of a pact. Alberto Nunez Feijoo, leader of the PP on Monday, said that Prime Minister had already requested a pact to combat climate change for 2018 and 2022 but it was not implemented. He said, "This government lacks credibility." (Reporting and editing by Emma Pinedo, Sharon Singleton and Inti Landauro)
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Kuwait invites bids on 1.8 GW water and power project
Kuwait has opened the bids for phase one of the Al Khairan water and power project. The project is a 1.8-gigawatt energy source that aims to alleviate Kuwait's power shortages. Kuwait Authority for Partnership Projects invited pre-qualified international consortiums to submit bids for Al Khairan Phase 1 independent water and power producer project. The project will also produce 125 millions imperial gallons per day of water. Kuwait, a member of OPEC and a major oil producer, is facing a severe electricity shortage because of rapid population growth, urbanization, rising temperatures, and maintenance delays in certain plants. The government has had to impose planned cuts to power in some areas as early as last year. Three consortiums were invited to submit their proposals. One was led by Abu Dhabi National Energy Company, the other by Saudi Arabia’s ACWA Power and the third by China Power International Holding. Nebras Power, Sumitomo Corporation and other qualified companies include. KAPP announced in an announcement on Sunday that the project would be developed using a public-private model. It will include "financing and design, construction, operations, maintenance, and transfer" for the plant. The plant will be located about 100 km south of Kuwait City, along the Gulf Coast, according to the newspaper Al-Rai. KAPP stated that the winning bidder would form a project firm to sign a deal for 25 years to sell water and power to the government. PPPs allow companies to be set up for the purpose of executing projects that are managed by a partner. The Kuwaiti partner can be a foreign investor or a group of investors. Kuwaiti citizens are offered a 50% stake, with the remaining being retained by the government. KAPP signed contracts worth over $3.27billion in August with ACWA Power, Gulf Investment and Al-Zour North Phases 2 and 3. Reporting by Ahmed Hagagy, Kuwait; Editing and proofreading by Ros Russell
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Sources say that Saudi Aramco and Iraq's SOMO have stopped crude sales to Indian refiner Nayara.
Three sources with knowledge of the situation said that Saudi Aramco, Iraq's SOMO state oil company and India's Nayara Energy have ceased selling crude oil after the European Union imposed sanctions in July on the Russian-backed refiner. According to LSEG data and sources, the halting in supply of crude oil from two Gulf exporters meant that Nayara, which is majority owned by Russian entities, including Rosneft oil giant, was reliant on Russia exclusively for its crude imports during August. Shipping data from Kpler & LSEG revealed that Nayara usually receives 2 million barrels per month of Iraqi and 1 million barrels per month of Saudi crude. However, in August, neither of these suppliers sent any shipments to Nayara. SOMO and Nayara have not responded to requests for comments. Saudi Aramco refused to comment. Two sources, who declined to provide further details, said that Nayara had experienced payment difficulties for its purchases from SOMO due to the sanctions. According to Kpler, LSEG and industry sources as well as Kpler data and LSEG's data on the latest cargo of Basra oil from SOMO, it was discharged by Kalliopi (a VLCC) at Vadinar Port for Nayara on July 29. According to LSEG, the private refiner received a million barrels each of Basrah Heavy and Arab Light on July 18th. An official of the Russian Embassy at New Delhi stated last month that Nayara receives direct supplies from Rosneft. Sources have stated that the private company operates its Vadinar refinery in western India, which produces 400,000 barrels per day at 70-80% of its capacity because it is having difficulty selling its products due to sanctions. Nayara Energy controls 8% of India’s 5.2 million barrels per day refining capacity. Since the EU sanctions were imposed, it has struggled to transport fuel, relying instead on vessels from the so-called "dark fleet" after other shippers backed off, according to shipping data and LSEG. The CEO of the company resigned in August. Nayara announced last week that a senior executive of Azerbaijan’s national oil company SOCAR would be its new chief executive. (Reporting and editing by Tony Munroe, Jan Harvey, and Mohi Nrayan; Additional reporting from Ahmed Rasheed, New Delhi; Mohi Nrayan, Baghdad; Florence Tan, Singapore)
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Tax reform by Indian PM Modi to cut levies for shampoos, hybrids and TVs
Two sources revealed that India will cut the consumption tax on 175 different products, from hybrid cars and shampoos to consumer electronics. Modi has repeatedly called for increased usage of Indian products. This is the biggest reform to the goods and service tax system in almost a decade. Modi announced his first reform plan on Independence Day last month when he promised to make everyday products cheaper in the fifth largest economy of the world. His proposal reduces the goods and services (GST), which includes toothpaste, talcum, and shampoo, from 18% down to 5%. This is expected to increase sales for companies such as Hindustan Unilever, and Godrej Industries. GST on televisions and air conditioners could drop from 28% down to 18% before the Diwali shopping spree, which begins in October. Brands like Samsung, LG Electronics, and Sony will dominate sales. The GST council in India, headed by the federal Finance Minister Nirmala Sitharaman, and with representation from all the states of the country, will finalise a list of tax-cutting items at a meeting scheduled for September 3-4. A request for comment on this article sent to the Finance Ministry by email was not immediately answered. The tax cuts proposed are also intended to cushion the expected drop in exports into the United States, by increasing domestic consumption and helping increase farm incomes. India plans to reduce consumption tax for key exports like farm machinery, tractors, and fertilisers to 5%. The current rate is 12%. India is also reducing consumption tax on key export items like fertilisers, farm machinery and tractors as well as their parts to 5% from 12% or 18% at present. CARS AND COLAS Modi's Government has proposed to reduce GST on small petrol-hybrid cars from 28% to 18%. This is a victory for Japanese automakers Toyota Motor and Suzuki Motor. For years, carmakers have lobbied to reduce taxes on a technology that they claim is cleaner than petrol vehicles. The tax on hybrid vehicles, which are powered by a combustion motor and an electric motor, can be lowered to match the 5% GST for electric cars. Tata Motors, Mahindra & Mahindra and other Indian EV manufacturers have expressed concerns that lowering the tax on hybrids could derail the country's electricification ambitions. The government also proposes reducing the tax on motorcycles, scooters, and commuter vehicles with engine capacities less than 350cc. This includes 95% of the close to 20 millions two-wheelers that were sold in India during last year's fiscal year, by companies such as Bajaj Auto Hero MotoCorp, and TVS Motor. The proposed tax cut is expected to boost the sale of small vehicles in India, the third largest automobile market in the world. This will benefit Maruti Suzuki as India's biggest carmaker as well as its rivals Hyundai Motors and Tata Motors. The government will lower the additional charges to maintain the rate at 50%. India may also raise rates on coal, as well as on services such as betting, horse racing, and casinos, while maintaining levies on carbonated drinks and colas made by PepsiCo and Coca-Cola, as well as homegrown Reliance Industries. This is despite calls for a tax cut. (Reporting and editing by Toby Chopra, Mark Heinrich and Nikunj Ahri)
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Copper reaches a one-month high on the back of strong China factory data, and a weak dollar
The copper price rose to its highest level in over a month Monday. This was boosted by positive manufacturing data from China, the world's largest metal consumer. Also helping were a weaker US dollar and upbeat manufacturing statistics. The price of three-month copper at the London Metal Exchange was unchanged at $9.896 per metric ton during official open-outcry trades after reaching its highest level since July 24, at $9.947. LME copper is up 13% in the last year after recovering from its lowest level of $8,105 at the beginning of April. Investors were encouraged by a survey conducted by the private sector on Monday, which showed that China's manufacturing activity in August grew at the fastest pace in five month on the backs of increasing new orders. "Macro- and cyclical conditions are generally improving in China." This should be good news for the final demand," said WisdomTree commodities strategist Nitesh Sha. Shah said that the positive outlook is not limited to commodities. He said that Chinese stocks have been roaring. Shanghai shares flirted on Monday with 10-year highs. The Shanghai Futures Exchange's most traded copper contract rose 0.7%, to 79.780 yuan (11,153.52) per ton. This is the second session in a row that the copper contract has risen. Metals market gains were tempered by concerns about U.S. Tariffs. This also dampened factory activity in Asia. Investors are awaiting U.S. Labour Market data, which may alter expectations about interest rates. The dollar is weaker, making commodities priced in U.S. dollars cheaper for buyers of other currencies. Other metals include LME aluminium, which fell 0.3% during official activity, to $2.609 per ton, and tin, which dropped 0.5%, to $34,850. Lead was up by 0.2%, at $1.994, while zinc rose 0.3%, to $2.828. Nickel, however, rose 0.3%, to $15.465, the highest since July 25. Click here to see the top metals stories ($1 = 7.1529 Chinese Yuan) (Reporting and editing by David Goodman).
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Swiss court considers climate case brought by Indonesian islanders against Holcim
On Wednesday, a Swiss court will decide whether or not to hear a lawsuit against Holcim, a Swiss cement giant and one of the largest in the world. The complaint alleges that the company does too little to reduce carbon emissions, contributing to global climate change. Four residents from the Indonesian island Pari, which is repeatedly inundated as sea levels rise due to warmer temperatures, filed a legal complaint with the cantonal court of Zug in Switzerland in January 2023. The court must declare its competence and admit the complaint before proceeding. Next, the court will consider the merits of each case. According to Swiss Church Aid, a non-profit organization that supports the case, if the case is successful, it would be the very first time a Swiss company has been sued for its role as causing global warming. The NGOs that backed the complainants claimed they singled out Holcim as one of the biggest emitters of carbon dioxide in the world and the largest "carbon major" (as it is called) in Switzerland. Holcim's spokesperson said the company was committed to climate action and that CO2 emissions have been reduced by more than half since 2015. Ibu Asmania is a Pari mother of three who has lost her income due to the warming sea temperatures that have killed marine life. "I am definitely concerned, because now the situation has worsened, after it was predicted by 2050 that Pari Island will be under water", she said during a trip to Aletsch Glacier, in Valais Switzerland, before the hearing. Arif Pujianto is a worker on a Pari tourist beach. He described how coastal erosion and flooding affected his home and his workshop. Sea water was contaminating the water in his house. The claimants are seeking compensation of 4,500 Swiss Francs (3,600 Swiss Francs) to repair their homes as well as to build stone walls to protect their island. According to the Global Cement and Concrete Association, Cement production accounts for about 7% global CO2 emissions. Holcim's spokesperson stated that the company has "the broadest range of technologies for decarbonization in the industry", highlighting the use of low-emissions cement formulations, and the replacement of fossil fuels by renewable energy. Reporting by Denis Balibouse, Olivia Le Poidevin and Frances Kerry.
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Modi's tax reform has seen levies cut on TVs, shampoos and hybrid cars
Two sources revealed new details about Prime Minister Narendra Modi’s major tax reform. India will cut consumption tax on 175 products, including shampoos, hybrid cars, and consumer electronics. Two sources revealed that India plans to reduce goods and services taxes (GST) from 18% down to 5% on products like talcum, toothpaste, and shampoo. This is expected to boost sales at companies such as Hindustan Unilever, and Godrej Industries. Before the Diwali shopping period, which begins in October, brands such as Samsung, LG Electronics and Sony will dominate sales, consumer electronics, like air conditioners, televisions and other electronic devices, could see their rates fall from 28% down to 18%. Toyota Motor and Maruti Suzuki, who have lobbied for years to lower tax on a technology that they claim is cleaner than petrol vehicles, will be pleased with the proposed reduction on small petrol-hybrid cars from 28% to 18%. On September 3-4, the GST council will decide which goods and services India plans to reduce taxes on. The GST council is led by federal finance Minister Nirmala Sitharaman with representation from all the states. Modi's Independence Day speech, delivered on August 15, in which he promised to reduce taxes on everyday items but did not provide details, triggered the sweeping changes. India's Finance Ministry did not respond to an email asking for comments about this story. (Reporting and editing by Nikunj Ahri, Aditi Sha; Toby Chopra is the editor)
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Putin suggests that Shanghai Cooperation Organisation member countries should issue joint bonds
The Russian President Vladimir Putin proposed on Monday that members of the Shanghai Cooperation Organisation (10-nation SCO) sell joint bonds. This would be a significant step in deepening their economic co-operation. Putin floated the idea for a system of joint payments to settle trade at a group summit in China. The SCO was established in 2001 and is the successor of the Shanghai Five (China, Russia, Kazakhstan Kyrgyzstan, Tajikistan) which was formed in 1996. The SCO now includes India, Pakistan and Iran as well as Belarus and Uzbekistan. Putin said to the heads of state of SCO in Tianjin, China's northern port. He said that he also supported "the creation our own payment settlement and depository infrastructure", and "the formation a joint investment project bank". Putin stated that "all this will increase our economic exchanges' effectiveness and protect them against fluctuations in the external climate." After the 2022 invasion in Ukraine, Western sanctions against payment systems and Chinese bank disrupted Russian commerce. Putin stated that the SCO economies grew by an average of 5% between 2024 and 2025. (Reporting from Moscow; Guy Faulconbridge, Editing by Mark Trevelyan).
Debt service concern forcing bad to make difficult choices, UN official states
A lot of the world's. poorest nations are having to cut other investment in order to. service debts, United Nations Advancement Program. administrator Achim Steiner said on Monday.
Speaking at an occasion in Hamburg, Steiner included that the. monetary crunch indicated nations around the world were struggling to. fulfill their sustainable advancement goals.
For many, least developed nations, they have literally. been evaluated of the monetary markets. They can not borrow any. more money, Steiner told the Hamburg Sustainability Conference,. including that they should draw down other investing to prevent financial obligation. default. It's a really severe scenario.
Countries like Ghana, Sri Lanka and Zambia have. defaulted on their financial obligation in the last few years, while others are. struggling to pay after the worldwide rate of interest. hiking cycle sent out loaning costs greater.
At the very same time, the world needs trillions of dollars. more annually to fulfill environment spending goals. Steiner said. increasing financing was absolutely central to meeting. sustainable advancement goals-- something the UNDP is keeping an eye on. closely.
We have to tackle this problem of our global. monetary architecture and our global monetary system,. Steiner said. If not, we are going to fall apart in our. endeavour to discover responses that our citizens are expecting us to. find..
(source: Reuters)