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UN Climate Budget to be Increased by 10%
The U.N. Climate Body's budget will be increased by 10% over the next two-year period. This is a positive step for the organization, as it shows a willingness to collaborate on the issue of climate change. China's contribution has also been raised. Nearly 200 countries, from Japan to Saudi Arabia to small island countries like Fiji, reached a deal at the U.N. Climate Negotiations in Bonn. This agreement came despite significant funding cuts in other U.N. organizations, which were triggered by U.S. cutting its contributions and political pushback against ambitious climate policies by European countries. The countries agreed on a budget core of 81.5 millions euros for the United Nations Framework Convention on Climate Change over 2026-2027. This is an increase of 10% from 2024-2025. The core budget is funded through government contributions. China's contribution has been increased to reflect the economic growth of the country. China, which is the second largest economy in the world, will cover 20% of the budget. This is up from 15%. Only the United States as the largest economy in the world received a higher share of 22%. Donald Trump, however, resigned from the U.N. Paris Climate Agreement and stopped international climate funding. Bloomberg Philanthropies pledged to cover U.S. contributions to UNFCCC budget. The U.S. didn't attend the U.N. Climate talks in Bonn this week, Germany, where the budget has been approved. UN climate chief Simon Stiell welcomed this increase as a "clear signal that governments still see U.N. convened climate collaboration as essential, even during difficult times." UNFCCC facilitates annual climate negotiations between countries, and assists in implementing agreements made. This includes the 2015 Paris Agreement which committed nearly all nations towards limiting global warming. In recent years the organization has suffered a severe financial shortfall due to major donors such as China and the U.S. not paying on time. This led the organization to reduce costs, including canceling some events. UNFCC running costs and staffing are lower than other U.N. agencies facing funding cuts. For example, the U.N. Trade and Development Agency's 400 staff. According to a memo, the U.N. Secretariat is planning to cut its budget of $3.7 billion by 20%. (Reporting and editing by Toby Chopra; Reporting by Kate Abnett)
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Netanyahu expects to expand peace talks after Iran war
Benjamin Netanyahu, Prime Minister of Israel, said that Israel's war against Iran was a chance for peace and his country shouldn't waste it. In a press release, Netanyahu stated: "This victory offers an opportunity to dramatically expand peace agreements." This is something we are working with great enthusiasm on. "Along with the release of hostages and defeating Hamas, a window of chance must not be missed." We can't waste a single moment." Israel Hayom, citing an anonymous source, reported earlier in the day that Netanyahu and U.S. president Donald Trump had agreed, in a telephone call this week, to end the Gaza war quickly, possibly within two weeks. Israel Hayom stated that the agreement could include an expansion of the Abraham Accords between Israel and its Arab neighbours, including Saudi Arabia and Syria. The Prime Minister's Office declined to comment on Israel Hayom. The U.S. brokered Israel-Iran truce announced by Trump has raised hopes among Palestinians that the 20-month-long war in Gaza, which has ravaged the area and forced most of its residents to flee their homes with widespread malnutrition, will soon come to an end. Netanyahu stated on Sunday that he expects more countries to sign the Abraham Accords with a weaker Iran. Netanyahu said to reporters at the time, "We have broken up the axis." This is a big change, and Israel is becoming more prominent not only in the Middle East, but around the globe. This is a major shift. "We will have a new, bright future of security, prosperity, hope, and peace." Reporting by Howard Goller and Maayan Libell; editing by Andrew Cawthorne
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Brazil's power regulator warns that budget cuts could lead to a shutdown.
Sandoval Feitosa said that Aneel, Brazil's regulator of power, is in a serious budget crisis. He urged the government to release money to keep the agency's vital operations running. Why it's important Aneel's potential closure would coincide with government efforts to reduce spending in order to meet fiscal targets and could compromise the regulatory oversight of Latin America's biggest power sector. Aneel is primarily responsible for regulating Brazil’s electricity generation, transmission, and distribution. It also oversees concessions and implements government policies, and establishes tariffs. By the Numbers According to Feitosa, Aneel has had its budget cut to 117 millions reais (about $21,28 million), from an initial 155 million. This is because the government implemented spending containment measures. The agency initially requested 240 millions reais for its operational requirements. KEY QUOTE Feitosa, a reporter in Rio de Janeiro, told reporters that the agency would only be able function every day until 2 pm because of these cuts. Due to financial constraints, he noted that Aneel has already cut staff, suspended call center operations, and prevented inspections. Feitosa stated that this is the biggest budget cut Aneel had ever seen in its history. What's Next? Feitosa has assured that Aneel’s analysis of the renewals of distribution concessions as well as auctions for power will not be affected by the current budget crisis. The agency is waiting for a government decision on its funding request.
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Nour News reports that the damaged unit of Iran's South Pars Refinery is now back in operation.
Nour News, the Iranian state news agency, reported that a damaged unit of South Pars refinery Phase 14 has been returned to service. Israel had struck the refinery in its first attack on Iran's oil sector. South Pars is the largest gas field in the world. It is located off the coast of Iran's Bushehr Province, which is the southernmost province. This gas field is responsible for a large part of the gas produced by the country. Iran is the third largest gas producer in the world after the United States of America and Russia. The agency said that gas production did not stop and the unit damaged was repaired within 10 days. The Israeli strike on June 14 caused an fire in one of four Phase 14 units. It has since been put out. Israel began an airstrike against Iran, killing scientists and commanders on June 13, and bombing nuclear facilities. It claimed it was trying to stop Tehran from building atomic weapons. Donald Trump, the U.S. president, announced a ceasefire on Monday between Israel and Iran after a 12-day aerial war. Reporting by Dubai Newsroom. Yomna ehab is the author. (Editing by Andrew Cawthorne, Mark Potter and Mark Potter).
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Dollar hits 3-year low and stocks hit new record amid Fed concerns
The dollar fell to its lowest level in more than three years, even though global stocks hit their third all-time high on Thursday. Markets are also growing increasingly concerned about the independence of the Federal Reserve. The U.S. Dollar Index was down by nearly 0.5% for the session, and over 10% on an annual basis. If the trend continues in the coming days, it will be the biggest drop in the first six months since the beginning of the free-floating currency era in the early 1970s. Wall Street's major indexes are trading higher. The benchmark S&P 500, and Nasdaq are nearing records. The Dow Jones Industrial Average increased by 0.74%, the S&P 500 by 0.66% and the Nasdaq Composite by 0.73%. European shares ended up 0.09%. MSCI's global stock index rose 75%, to 908.96. This was a record high for a third consecutive session. According to a Wall Street Journal article, President Donald Trump is considering replacing Chair Jerome Powell in the coming months. His term ends next May. Powell just finished two days of testimony before the U.S. Congress. He said that he would be cautious in considering any further rate reductions, as he expects Trump’s tariffs to cause prices to increase this summer. Wasif Latif is the chief investment officer of Sarmaya Partners, a New Jersey-based firm. He said that a Trump appointment to a shadow Fed chairman will likely undermine investor confidence in its independence and contribute to the weakness of the dollar. Latif explained that the market is aware that Powell will leave the stage sooner or later and that the next appointment would likely be someone who's a bit more dovish, or politically motivated. "And the markets are saying that the next chair is likely to be more receptive to large cuts than Powell was and I think this is part of the reason why the dollar is weakening and gold is reflecting it." Overnight, the Nikkei in Tokyo rose 1.65%, reaching its highest level since last January. MSCI's Asia-Pacific share index outside Japan also finished higher. The euro has reached its highest level against the US dollar since 2021. Trade tariff talks with Washington are expected to begin next week ahead of Trump's July 9 global deadline. The dollar fell to its lowest level in a decade against the Swiss Franc, at 0.79855. The dollar was also down by 0.73% at 144.195 yen against. After its decline this year, the dollar index, which compares the U.S. dollar to six other currencies, is now at its lowest point since March 2022. Michael Metcalfe, State Street's chief economist, said: "The dollar has struggled to appreciate in virtually any market regime." He added that the US dollar was now at its lowest level since the COVID Pandemic. The CME FedWatch tool shows that traders now price in nearly 25% of the chance that the Fed will cut rates at its meeting on the last day of July, up from 12.5% the previous week. The yield on the benchmark U.S. 10 year notes dropped 1.6 basis points, to 4.277%. The yield on the two-year U.S. Treasury, which moves typically in line with expectations of interest rates, fell 2.9 basis points to 3.75%. This was its lowest level since seven weeks. Germany's benchmark, which is used in Europe for comparisons, has risen by 0.4 basis points. The oil prices are on course for a second consecutive day of gains following their sharp drop after the Trump-brokered truce between longtime Middle East enemies Israel and Iran early this week. Trump also announced that he would hold talks with Iran to ask for a commitment to curtail its nuclear ambitions. Brent crude futures climbed 1.2% to 68.49 a barrel, while U.S. West Texas Intermediate (WTI), gained 1.43% at $65.85. Gold fell 0.2% to $3325.54 per ounce.
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Gresham House CEO says US clients are looking for green investments in Europe
Tony Dalwood said that U.S. investors and Asian investors were looking at Europe as a result of the U.S. government's decision to withdraw support for projects in the United States related to the transition to low-carbon economies. Since assuming office, U.S. president Donald Trump has taken steps to reduce various environmental initiatives and regulations, as well as standards, that were championed by the predecessor. This includes ending tax credits for projects involving green energy years earlier than originally planned. Other countries are also feeling the pressure to slow down their transition to zero emissions, but many governments still remain committed to investing in projects like hydrogen and solar energy. Dalwood, speaking at a NEXT Newsmaker conference during London Climate Action Week, said that "we're seeing (U.S.)... investors wanting to come over to Europe to talk about it a little bit more" in terms of infrastructure, energy transformation investments, and natural capital. "And this is also true elsewhere in the world; Asia thinks they should invest more in Europe than they did before, when they would normally have invested in North America. It's clear, after talking with (investors) worldwide in the past six months. Dalwood said that the British government's commitment to green energy, as outlined in its Industrial Strategy published this week, was a significant signal. The government's plan aims to boost investment in clean energy by more than 30 billion pounds (41.23 billion dollars) per year, but in response to political pressures about the cost of the transition it has said that it will reduce green levies on business. Dalwood stated that the UK's green energy support was crucial for Gresham House. The company, which manages assets worth around $12 billion and is Britain's largest commercial forestry manager with around 12 billion pounds in assets, has a large market for "natural capital". Investors see sustainable development as a way to achieve their goals. This includes investing in sustainable agriculture and forestry, biodiversity, carbon sequestration, and water management. Dalwood added that he expects the number to increase "to a larger number". Reporting by Simon Jessop. Jane Merriman edited the article.
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Siemens Gamesa, Chinese magnet suppliers discuss European production, COO says
Siemens Gamesa, a wind turbine manufacturer, is in discussions with Chinese suppliers about bringing production in Europe. This would reduce the region's dependence on imports following China's restrictions on supply. The delays in the issuance of Chinese export permits for rare earths have forced European automakers and their suppliers into a scramble to find alternatives on a market dominated by China, the world's second largest economy. The production of rare earths across Europe could be affected by the No. 2 economy in the world. Wind sector is also dependent on rare earths produced in China. Most notably, neodymium which is used to make permanent magnets, a vital component of turbines, but not currently affected by delays in export permits. Siemens Gamesa is a division of Siemens Energy and the largest offshore wind turbine manufacturer in the world. It has taken several steps to diversify its business away from China. "Regarding Chinese magnet dependency, it's also about this question: Would I prefer to spend a little bit more money in Europe so that I can become resilient?" Are there any ways to encourage suppliers outside Europe to establish a presence in Europe?," Carina Brühl, Siemens Gamesa chief operating officer, said at an event. We are in general also talking with Chinese suppliers about the possibility to build factories in Europe. This is a possibility if fair competition encourages investments in sustainable constructions. Brehm didn't name any suppliers but some of the largest include JL MAG Rare-Earth and Ningbo Yunsheng. Brehm stated that Siemens Gamesa is working hard to achieve its goal of breaking even by 2026. When asked if the onshore wind business, the cause of the problems, was for sale, Siemens Energy finance chief Maria Ferraro replied that the portfolio would remain intact with the hope of generating double-digit profits in the future. The team rallies around the goal of ensuring stability in this business. It's not an easy task. Ferraro added that what matters is whether it performs according to our expectations. (Reporting and editing by David Evans; Christoph Steitz)
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Petrobras wins major lots at Brazil's oil auction, beating revenue forecast
Petrobras, the state-run oil company in Brazil, was the biggest winner of the auction on Thursday. The sale is expected to generate revenues in excess of $5.08 billion. The amount exceeds initial Government forecasts The 25 billion reais should boost the public coffers, as the Luiz Inacio Lula Da Silva administration tries to reach its fiscal targets. The state-run company PPSA held the auction, and is responsible for selling that portion of oil which companies producing under share contracts in pre-salt fields must give to the Brazilian government according to Brazilian law. Petrobras purchased three of the seven lots that were put up for auction, securing 36.5 million barrels total of oil from the Mero-Sepia fields. Equinor purchased 14 million barrels from Mero while another 14 were bought by a consortium of Galp and ExxonMobil. Petrochina and the Mataripe refinery acquired 10 million barrels. "Our auction had the most participants, winners and best prices. We also broke the record of premiums over lots. "It was a huge success, no doubt," PPSA chief Luis Fernando Paroli said to reporters. He said that PPSA is expecting to auction 100 million barrels next year. This could generate 37 billion reais of revenue. $1 = 5.5117 Reais (Reporting and editing by Brendan O'Boyle, Marta Nogueira Gabriel Araujo Jr.
UN: Southwest Pacific to be hit by unprecedented marine heatwaves in 2024
The UN's weather agency said that in 2024, unprecedented heat waves in Southwest Pacific will affect more than 10% the surface of the ocean, damaging coral reefs, and placing the last tropical glacier in the region at risk of extinction.
In an annual report, the World Meteorological Organization stated that the average 2024 temperature in the region (which includes Australia and New Zealand and southeast Asian island countries like Indonesia and the Philippines) was nearly half a degree Celsius higher than the mean temperatures between 1991 and 2020.
Blair Trewin of WMO, who is one of the authors of the report, said that "much of the region experienced at least severe conditions of marine heat waves at some point in 2024," particularly near and south the equator.
The report stated that extreme heat in 2014 affected 40 million square kilometers (15.4 million sq miles) of ocean and new temperatures were recorded in Australia and the Philippines. Ocean surface temperatures broke records as well, and the total heat content of the ocean was second highest on average behind 2022.
In October and November, the Philippines was also hit by an unprecedented number of cyclones that experts attribute to climate change.
The report also noted that sea levels are continuing to rise faster than the global average. This is an urgent issue in a region with more than half of its population living within 500 metres (547 yards), or less, from the coast.
Satellite data also showed that the only tropical glacier in the region, located on the western side of New Guinea island, Indonesia, shrank up to 50% during the past year.
Thea Turkington of the WMO, one of the authors of the report, said: "Unfortunately, the rate of glacier loss is so high that this glacier may disappear by 2026, or soon thereafter." (Reporting and editing by Stephen Coates; David Stanway)
(source: Reuters)