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Rubio: Oil license expiring in Venezuela on May 27
The U.S. Oil License in Venezuela expires on May 27, said Secretary of State Marco Rubio in a late-night post on his X account. The license of the U.S. company Chevron to operate in Venezuela was due to expire on May 27. Rubio wrote that "the pro-Maduro Biden #Venezuela oil license will expire on Tuesday, May 27 as scheduled." Requests for comments on Rubio’s post were not immediately responded to by the State Department or Treasury Department. Richard Grenell is the envoy of Donald Trump, U.S. president. Two sources said that Jorge Rodriguez, head of Venezuela's ruling party allied legislature and the person responsible for the release of the American who had been detained in Venezuela for several months, met with him in Antigua. Sources said Grenell offered to extend the wind-down phase for a license that allows the U.S. oil giant Chevron to work in the country by 60 days. The license was set to expire May 27. Chevron did not respond immediately to a comment request. The U.S. Treasury Department as well as the State Department would have to approve any 60-day extension.
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EU labels only four countries as "high-risk" under deforestation laws
Kate Abnett, Charlotte Van Campenhout, and Bart H. Meijer BRUSSELS (May 22) - The European Union's new anti-deforestation legislation will place the most stringent checks on commodities from only four countries. Brazil and Indonesia, two major forest nations, are exempted. In a legal document published on Thursday by the European Commission, it was stated that the law will categorise imported goods from Belarus, Myanmar and North Korea as having a “high risk” of fuelling the deforestation. Brazil and Indonesia will be labeled as "standard risks" because they have among the highest deforestation rates in the world. This means that their goods will be subject to lighter compliance checks when exported to Europe. This law, which is a world first, will require companies to perform due diligence before placing certain products on the EU market, including cocoa, beef, palm, wood, soy, coffee, and chocolate. Brazil and Indonesia have been vocally against the law, claiming that it is costly and burdensome. The main difference between these groups is that EU member states will have to conduct compliance checks on 9% of exporters from high-risk nations, 3% for countries with standard-risk and 1% from low-risk nations. The U.S. is one of the countries that was labelled "low-risk". This means its companies still have to collect information about their supply chains but cannot assess or address deforestation risk. Companies in countries with high and standard risks will have to provide information on when and where commodities were produced, and "verifiable” proof that they weren't grown on deforested land after 2020. Campaigners criticized the EU's decision to only impose strict checks on four nations. However, they said that even countries with lower risks would be subjected to some due diligence obligations, although these might be simpler. In practice, it shouldn't affect the ability of this law, which is a non-profit organization, to save forests, said Giulia bondi, a campaigner with Global Witness. The Commission claimed that it had classified countries on the basis of scientific data and evidence. The EU law applies to large firms from the end 2025, and small businesses from June 2026. A company could be fined up to 4% its turnover in the EU if it fails to comply. (Reporting and editing by Bart Meijer, Jan Harvey and Charlotte Van Campenhout)
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Iran's Revolutionary Guards warn Israel of any attack
The Revolutionary Guards of Iran warned Israel on Thursday that it would face a "devastating response" if they attack Iran. This came days after CNN reported U.S. Intelligence suggesting Israel was preparing to strike Iranian nuclear sites. According to state media, the Guards spokesperson Alimohammad Naini stated that "they are trying to scare us with war. But they are miscalculating because they are unaware of how powerful the popular and military backing the Islamic Republic will be in war conditions." Tehran and Washington are set to hold their fifth round of talks in Rome on Friday amid a strong disagreement about uranium enrichment in Iran. The U.S. claims that this could be a path towards developing nuclear weapons. Iran denies such an intent. CNN, citing U.S. intelligence officials, added that it was unclear whether Israeli leaders had made a final military decision and that there were disagreements within the U.S. Government about whether Israel would decide to attack in the end. Diplomats claim that a collapse in the U.S.-Iran nuclear negotiations or a nuclear agreement which does not ease Israeli concerns over Iran developing nuclear weapons may motivate Israel to strike its regional archrival. State media reported that Ayatollah Khamenei, the Iranian Supreme Leader, said Tuesday that U.S. demand for Tehran to stop enriching Uranium is "excessive" and "outrageous." He expressed doubts about whether negotiations on a new nucleus deal will be successful. Tehran claims that its nuclear energy program is solely for civil purposes. Iran and Israel exchanged direct fire in April and in October last year, increasing the risk of a regional conflict. Mark Heinrich edited the Dubai Newsroom report.
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US House narrowly approves Trump's tax-cutting bill and sends it to the Senate
The Republican-controlled U.S. House of Representatives passed by a single vote a sweeping tax and spending bill that would enact much of President Donald Trump's policy agenda on Thursday and saddle the country with trillions of dollars in debt. The bill would deliver on many of Trump’s populist campaign promises, including new tax breaks for car loans and tips. It would also boost spending on border security and the military. According to the nonpartisan Congressional Budget Office, it will add $3.8 trillion over the next decade to the $36.2 trillion federal debt. Trump's "one, large, beautiful bill" was passed by a vote of 215-214, with two Republicans and all the Democrats voting against it. A third Republican did not vote for or against this bill. The vote was held after two nights of marathon debating by lawmakers as House Speaker Mike Johnson tweaked the bill to please various factions in his party. Johnson, with a 220-212 narrow majority, could not afford to lose any more votes than that. Johnson stated that the House had passed legislation which would shape our nation for generations to come. The bill now heads to the Republican-controlled Senate, where it will likely be changed further during weeks of debate. The 1,000-page bill would extend the corporate and individual tax breaks passed in 2017, during Trump's inaugural term, and cancel many green energy incentives passed by Democratic ex-President Joe Biden. It would also tighten eligibility requirements for food and health programs for poor people. The bill would also fund Trump's crackdown against immigration by adding border guards in the tens-of-thousands, and creating a capacity to deport as many as 1 million people per year. Moody's downgraded the United States' highest credit rating last week due to growing concerns about the U.S. Debt, which reached 124% GDP. Every year since the beginning of this century, both Republican and Democratic administrations have failed to align spending with revenues. According to the CBO, interest payments made up 1 dollar out of 8 dollars that the U.S. Government spent last year. This was more than what they spent on the military. This share will grow to one out of six dollars in the next 10 year as the costs for health care and pensions rise due to an aging population. Investors are becoming increasingly nervous about the U.S. fiscal situation and Trump's tariffs. They are selling dollars and other U.S. financial assets, which form the foundation of the global system. U.S. Stock Futures rose slightly following the passage of the bill, while yields for U.S. Treasury Bonds increased. We're not rearranging the deck chairs of the Titanic this evening. "We're putting the coal in the boiler, and setting the course for the Iceberg," said Kentucky Representative Thomas Massie, one of two Republicans who voted against the bill. The deadline for debt ceilings Republicans are under pressure to pass this bill because of the growing debt. It would raise the debt ceiling for the federal government by $4 trillion. This would avoid the possibility of a default that officials warned could happen this summer. Republicans also argue that failing to pass the bill will result in an effective tax increase for many Americans as Trump's tax cuts from 2017 are set to expire by the end of this year. Republicans on the right of the party had called for deeper cuts in spending to reduce the budget impact. However, centrists were opposed because they feared that it would be too burdensome on the 71 millions low-income Americans who are enrolled in Medicaid. Johnson, in response to conservative concerns, made changes, bringing forward the new work requirements for Medicaid beneficiaries to end 2026 two years earlier. CBO estimates that this would result in the expulsion of several million people from the program. This bill would also penalize future Medicaid expansions in states. Johnson expanded the deduction for state and local taxes, which was also a priority of a few centrist Republicans from high-tax states such as New York and California. Democrats said the bill disproportionately benefited the wealthy, while cutting benefits to working Americans. CBO determined that it would decrease incomes for the bottom 10% of U.S. household and increase incomes for the top 10%. Jim McGovern, Democratic Representative, said: "This bill is a swindle, a tax swindle designed to steal money from you and your fellow Americans and give it to Trump's billionaire and millionaire friends." (Reporting and writing by David Morgan and Bo Erickson, Editing and proofreading by Scott Malone and Jamie Freed; Saad Sayeed, Toby Chopra, and Scott Malone)
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Heavy rains in southern China trigger landslides, killing two and leaving 19 others missing
The military has been deployed to help in the rescue effort after torrential rainfall triggered landslides on Thursday in China's southwest Guizhou Province. CCTV, the state broadcaster, reported that two bodies were found in Changshi. CCTV, citing initial reports, reported that a second landslide trapped 19 people in eight households. The authorities also issued warnings about geological disasters that may occur in the nearby area. Climate change is causing China to experience longer and hotter heatwaves, as well as more unpredictable and frequent heavy rain. Authorities have stated that the country's large population makes it particularly vulnerable to climate change. Heavy rains in the mountainous province of Guizhou, as well as nearby provinces Hunan and Jiangxi, prompted authorities to launch their third highest emergency response. Over 400 emergency personnel, including military officers and firemen, were dispatched to help in the rescue operation. Seven people have died and several others are missing after heavy rains last week in China’s southern Guangdong Province and Guangxi Region. Authorities issued warnings about severe rainfall, mountain flooding, and geological disasters. Chinese meteorological data show that 2024 is the warmest year since records began in the 1960s. This is the second consecutive year where milestones have been broken. Reporting by Farah master and the Beijing Newsroom; editing by Kate Mayberry
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US climate change pullback threatens planned Debt-for-Nature deals
The debt agreements worth billions of dollars that were designed to protect ecosystems in Africa and Latin America could unravel or need to be reworked amid fears of the U.S. backing drying up under Donald Trump. Debt-for nature swaps have become more popular in recent years. Deals involving the Galapagos Islands and coral reefs as well as the Amazon rainforest are among the most notable. U.S. International Development Finance Corporation has played a major role in the swapping of debt, with nearly 90% of the $6 billion being covered by the DFC. Sources with direct knowledge said that the DFC has about five swaps on the way. These are now being questioned by the CEO-in-waiting Ben Black, and the U.S. Government efficiency chief Elon Musk. Source did not specify the amount of debt covered by swaps, but noted that the last DFC-backed transactions involved more than $1 billion per deal. Requests for comments on the future involvement of the DFC in such deals were not responded to by the White House or the DFC spokespersons. Unnamed DFC officials confirmed that they stepped down as co-chairs of the global task force established in 2023 for expanding the use of debt exchanges. Scott Bessent, U.S. Treasury secretary, has also criticized multilateral lenders who are working on climate change issues. This comes amid a wider retreat by the U.S. that has seen them withdraw from Paris Agreement in order to reduce global warming. Four sources who have worked directly on the projects say that Angola, Zambia and one Latin American nation are among those countries whose debt-for-nature swap plans may need to be reworked and even abandoned because of uncertainty surrounding DFC. Vera Daves de Sousa, Angola's Finance Minister, said that her country has been in talks with the DFC regarding two possible swaps. Her country is among the most indebted countries in Africa, and its rivers are vital to the Okavango Basin, which supports endangered elephants and Lions. One is a debt-for-nature deal, the other a broader 'debt-for-development' swap tied to education and young people. De Sousa said recently that he felt "openness" from DFC, especially in relation to the debt-for development swap. She added, "We respect their view." "For us, there's no difference. We have opportunities both on the development and nature sides." Things have also changed in Zambia. Late last year, the country was considering a trade involving its large national parks, which are home to more than 40% of Africa's Elephants. Situmbeko Musokotwane, the Finance Minister of South Africa, said that although the swap was not entirely shut down at the moment, the country did not intend to actively pursue it. NEW REALITY Smaller nations that are struggling with debt and climate change can generate money by exchanging expensive government bonds for less expensive ones. According to the UK-based non-profit International Institute for Environment and Development, the 49 world's poorest countries most at risk of a debt crisis could exchange a quarter the $430 billion in debt they currently owe. Sebastian Espinosa of White Advisory, managing director, has advised Barbados and Belize on swaps. These could include credit guarantee from multilateral development bank, along with private sector insurers, and guarantors. The Bahamas pioneered this last year. In the past, DFC support has been critical in scaling up deals. It offers up to $1 billion of political risk insurance. This protects the people who purchase the lower-cost bonds in the event that the governments fail to pay. "Who will step up?" Eva Mayerhofer, at the European Investment Bank who backed a Barbados swap in 2023 said: "I don't know (to replace DFC)." "We won't have the ability to convert debts so regularly." The Inter-American Development Bank (IADB), which has been involved in five out of nine of the debt-for-nature swaps over the past decade, often alongside the DFC, declined to comment on the impact of these swaps on its plans. Stephen Liberatore of Nuveen, a leading investor in debt swaps, says that while it is possible to find substitutes for DFC, its knock-on effect has yet to be determined. What is the cost of a private entity providing risk insurance compared to a public entity such as the DFC? Liberatore stated. "Does this change the amount saved?" The money is then used to conserve. "That is the ultimate question."
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Greece's fire season begins with a test of readiness by firefighters
Firefighters, rescuers, and the Greek army are ready to fight a wildfire that is threatening a summer camp on a hillside near Athens. This scenario has become all too common in Greece where climate change makes fires more destructive and frequent. Greece is now in the thick of wildfire season. The exercise held on Thursday near the seaside village of Lavrio, some 70 km south of the capital, was simultaneously conducted across the entire country. Fire trucks rushed to the scene, and an aircraft sprayed water onto a simulated fire. Authorities described the weather conditions of the drill as "realistic", hot and windy following weeks of drought. Giannis Kefalogiannis, Minister for Climate Crisis and Civil protection, told reporters that "this year also conditions will be very difficult." "We all will go to war." Greece's Mediterranean climate makes it more susceptible to climate change. It recorded its hottest Summer last year, as well as extended periods of drought which led to water shortages, and damaged crops. It is predicted that this June will be warmer than normal in southern Europe. The government plans to deploy an unprecedented number of firefighters - 18,000, up from 15,500 in 2020 - with the help of volunteers. The government will spend 2 billion euros to buy new aircraft, and nearly double the number of thermal camera drones will be used to detect fires earlier. Kefalogiannis stated, "Our goal is not to mourn human life and to protect the property and environment." According to the fire brigade in Greece, there were 9,777 wildfires across Greece in 2018. This is up from 8,257 wildfires in 2023. In 2023, one of Europe's largest wildfires ever recorded burned in the north of Greece for several weeks. At least 20 people died. A wildfire that was fanned to flames by gale-force winds reached the northern suburbs of Athens last summer and forced hundreds to flee. (Reporting and editing by Ed Osmond, KarolinaTagaris)
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The Brazilian Senate has approved a bill that will loosen environmental licensing
The Brazilian Senate approved legislation that will loosen environmental licensing despite criticisms from climate policy groups, and even some members of President Luiz inacio Lula's government. The bill was passed by the Senate on Wednesday night with 54 votes in favor and 13 against. It would allow for projects that are considered to have only a moderate impact such as dams or basic sanitation to be built, without the need to seek approval from environmental agencies. The powerful agribusiness group, including Lula's chief of staff Rui Cost, has endorsed the legislation. The bill highlights the government's divisions over environmental policy, as Lula tries burnishing his green credentials ahead of the country hosting the United Nations Climate Summit known as COP30 at the Amazonian City of Belem. The bill's approval is a serious blow to the Environment Minister Marina Silva who said that the bill was a major setback and would "dismantle" licensing throughout the country. Sources said that the government's ability to negotiate was limited due to its internal divisions. The government engaged in harm reduction by supporting a version that was deemed to have fewer impacts on the existing environmental laws, according to sources. Greenpeace, Brazil's Climate Observatory and a group of environmental groups have criticised the proposal, saying that it robs populations vulnerable, such as Brazil's Indigenous, of their right to participate in projects which could impact their communities. The bill went to vote at a time when Brazil's environmental agency Ibama is under intense scrutiny over licensing delays. This includes a request for drilling by the state-run oil company Petrobras to explore for oil near the coast of Amapa, an Amazonian state. Davi Alcolumbre is a native of Amapa, and has been pushing to develop the oil industry there. Reporting by Ricardo Brito in Brasilia and Lisandra paraguassu Writing by Fabio Téixeira Editing and Conor Humphries Brad Haynes
Stausholm, CEO of Rio Tinto, to retire in 2025
Rio Tinto CEO Jakob Stausholm is stepping down in the second half of this year, once a new CEO is named, the company announced on Thursday. A selection process is currently underway.
Stausholm was named as the company's top boss for 2020, despite legal, investor and public concerns over the destruction of 46,000-year old Juukan Gorge cave rock shelters.
Stausholm replaced Jean-Sebastien Jacques, who had been ousted by Rio Tinto for its handling of the scandal.
He will remain at the top of the company until a new leader is appointed.
Glyn Lawcock, an analyst at Barrenjoey Sydney, said that the announcement caught the market off guard. Stausholm had only been in office for five years and tenures typically last six.
Lawcock stated that "He has done a great job in the soft areas."
He said that these included rebuilding relationships following the Juukan Gorge disaster, advancing Rio Tinto’s Oyu Tolgoi Copper Project in Mongolia and restoring its relationship with Chinalco after tensions over their Simandou joint project had strained it.
Among the candidates for the top position are expected to be Bold Baatar, current Chief Commercial officer and Simon Trott, head of iron ore.
Rio announced in a London Stock Exchange statement that "a rigorous selection process has already begun, led by the Nominations Committee."
Stausholm, a Danish businessman, has held positions of leadership at A.P. Shipping Company and Rio. He was also a member of IBM's board of advisors. Moller - Maersk. (Reporting and editing by Savio D’Souza and Jan Harvey; reporting by Rishav Chaterjee and Melanie Burton from Melbourne, and Clara Denina from London.
(source: Reuters)