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The international funding has stalled, putting the Indonesian coal phase-out program at risk
The top Indonesian official in charge of the program said that the plan to retire coal-fired plants with a capacity of 6.7 gigawatts by 2030 is likely to fail due to the stalled funding from rich nations. The Just Energy Transition Partnership, a coalition of ten donor countries, promised to raise $20 billion for Indonesia in three to five year by 2022. This was once called the "single largest climate finance transaction." The sum was to include funds to retire coal-fired plants that represented 13.5% of Indonesia's total power capacity. Paul Butarbutar (JeTP Indonesia Secretary) said that no one has committed to financing the phase-out of coal at the COP30 Climate Summit in Brazil. Butarbutar stated that if no one is willing to step in and finance the phase-out of coal, we may have to consider whether this is the best option. The Indonesian problem, as the seventh largest coal-fired electricity producer in the world and Southeast Asia's biggest economy, highlights broader concerns about climate finance among developing countries, which have been slow to materialize. U.S. WITHDREW FROM JETP According to a draft report published by the initiative last month, Indonesia's JETP approved $2.85billion in loans and equity and $186.9m in grants for grids and renewables and efficiency as well as electric-powered transportation. However, no funds to retire coal power plants have been approved. The United States, Japan, and the European Union were among the 10 donors. Since then, the United States has withdrawn. Japan, which coordinates the JETP for Indonesia program with Germany, has not responded to requests for comment. The German press office stated that it was working with Indonesia "to identify the most effective and political feasible ways to reach the JETP objectives." Germany's Press Office said that JETP Indonesia has entered its implementation phase and is currently receiving over $6 billion of financing. The statement added that donors have pledged $19.53 billion of the $20 billion original pledge. Commitments are not the same as disbursements. South Africa and Vietnam have also JETP programs. Many countries oppose global proposals to phase-out fossil fuel subsidies because they say that these help eradicate poverty. Butarbutar didn't say how much money Indonesia would need to close 6.7 GW. HOW TO REPLACE COAL-FIRED PLANTS? Butarbutar added that JETP is also researching how to replace coal-fired power. If it's solar, where should the power plant be located in Java? Who would pay the initial costs if geothermal was to be replaced? Java is the most densely-populated area of the archipelago. Butarbutar stated that the U.S. withdrawal of the Indonesia JETP had nothing to do in relation to the struggle to phase out coal. Butarbutar stated that about $2.56 billion was managed by the Asian Development Bank under the Energy Transition Mechanism – a deal not related to JETP – and about half of this would be required to retire the 660 megawatt Cirebon-1 east of Jakarta. Cirebon-1 closure is being delayed after an unmet deadline last year. (Reporting and editing by Sudarshan Varadhan, Richard Valdmanis and Rod Nickel.
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Can COP30 help frontline resilience in the face of more heat and storms?
COP30 discusses how to measure climate adaptation and pay for it Farmers say that they are not receiving enough climate funding Extreme weather events are increasing and requiring more funding for adaptation. Clar NiChonghaile This kind of climate change is not uncommon in Parana, where the summers are now hotter and the winters colder. Droughts have also become more frequent. Six people were killed by a tornado that struck Rio Bonito do Iguacu, Parana on November 7. Bevilacqua Mendonca (35), wants COP30 to do more for smallholder farmers to adapt to extreme weather by providing them with funds to access knowledge, marketing tools, and early warning systems. In the vast complex that hosts the COP30, noisy air conditioners blast icy cold air into some corridors as other areas swelter. According to the latest Adaptation Gap Report by the United Nations, the gap between the measures taken to combat climate change and the ones still needed is $310 to 365 billion dollars per year. However, only $26 billion is provided each year. The Global Goal on Adaptation adopted as part 2015 Paris Agreement for combating climate change is supposed to provide a framework to measure progress. However, there was no way to clearly track what has happened until now. In Belem countries are attempting to agree on 100 indicator that everyone could use, in theory, for a better understanding of what works and who is the most vulnerable. Bevilacqua Mendonca is the global relationship manager for INOFO - an international network of organic farmers. She fears that their voices won't be heard. "We face the most severe consequences and we're the ones who bring you food." He said that smallholder farmers produce more than 50% of all calories in the world but receive less than 1% the funding they need. We want to make sure that the global goals discussions are actually aimed at us. Finance Gap Climate change is affecting 3.6 billion people, or nearly half the world population. This includes worsening floods, droughts, and storms as well as heat stress and food shortages. According to the Climate Risk Index created by Germanwatch, an independent environmental and human rights organization, extreme weather caused more than 832, 000 deaths and $4.5 trillion of direct economic losses between 1995 and 2024. Adaptation financing is intended to fund everything from infrastructure that can withstand flooding to agriculture that can withstand drought, to early warning systems, and risk transfer mechanisms such as insurance. Rich countries pledged double funding for climate adaptation at COP26 Glasgow in 2021. But that agreement expires in this year. The Least Developed Country Group, consisting of 44 countries, calls for a tripled grant-based adaption finance to $120 billion by 2030. "There is a financial gap for adaptation, and adaptation remains costly." In an interview during the talks, Anne Rasmussen (acting chair of the Alliance of Small Island States - AOSIS) said that it was important to agree on a financial goal. She said that events like Hurricane Melissa which caused havoc in the Caribbean last week, have set back countries by decades. By the time we are rebuilt and standing again, a new cyclone, extreme drought, or heatwave will come. World Resources Institute published a study in May that found every $1 invested in adaption could generate over $10.50 of economic, social and environment benefits. GET TO GRASSROOTS Sebastian Osborn is the global policy manager for Mercy For Animals. The organization campaigns for sustainable food system. He said that global goal indicators are a guiding star to adapt and take action. Osborn noted that in the first week, there were already divisions. Some countries were concerned the indicators could be used to condition receiving financial aid, while others wanted financial support for reporting on the indicators. Illari Aragon is the climate justice policy leader for Christian Aid, a group that fights poverty. She said that negotiators should not create a framework which entrenches inequality or leads to ineffective measures. She said: "We do not want indicators to be pushed through in Belem which could see money being spent on bad projects. Like a seawall in the Philippines, which blocked drainage and trapped the water on the incorrect side, causing larger problems." Mohamed Adow is the director of the environmental group Power Shift Africa. He said that the indicators can be used to create a "common vocabulary" for measuring progress in such areas as food and water systems. However, they should not take away from the necessity to provide financial support to adapt to climate change. He said that pretending to make progress by establishing a measurement system could ultimately distract from securing the adaptation finance. I come from a pastoralist family and know that no matter how many times you weigh the cow, it won't get fatter. According to the Adaptation Gap Report, both the public and private sector must do more without adding debt to vulnerable nations. Bevilacqua, a mushroom farmer in Campo Largo, said that "it is more than urgent" for family farmers. He uses agroforestry to integrate trees and shrubs into crops and livestock in order to improve soil productivity and health. These trees reduce emissions as well by storing carbon.
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Investors focus on US data as gold prices fall
The gold price fell on Monday as a result of the stronger dollar, and investors' reduced expectations for a U.S. rate cut in January. Investors were also awaiting delayed economic data that could provide clues about the Federal Reserve policy. As of 11:40 am, spot gold was down by 0.2%, at $4,070.43 an ounce. ET (1640 GMT). U.S. Gold Futures for December Delivery eased 0.5%, to $4.072.30 an ounce. Dollar-priced gold is now more expensive for holders of currencies other than the dollar. David Meger said that there is "some choppy trading" on the market ahead of what will be expected to become a flood of economic data, now that the U.S. Government has reopened. "Right Now, there is a lower expectation of additional Fed rate reductions, which has dented gold's optimism." The Fed minutes of its last meeting where they cut rates by 25 basis point are scheduled for Wednesday. Also on the calendar this week is September's jobs data, which will be released on Thursday. A growing number of Fed policymakers are hawkish about rate cuts at the next central bank meeting in December. The CME FedWatch tool shows that traders are now pricing in a probability of 41% for a rate cut of 25 basis points in December. This is down from 60% last week. The CME FedWatch tool shows that at least four Fed speakers are scheduled to speak in the afternoon, including Governor Christopher Waller, and New York Fed president John Williams. Gold is an asset that does not yield any interest, so it tends to do well in low-interest rate environments. Analysts at Scotiabank estimate that gold prices will be $3,800/oz in 2026, up from $3,450/oz currently. They cite uncertain economic conditions as well as a possible decline in interest rates. (Reporting by Pablo Sinha in Bengaluru; Editing by Shilpa Majumdar) (Reporting and editing by Shilpi Mahumdar in Bengaluru)
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Wall St. wobbles as Treasury yields drop due to Nvidia data and results
U.S. stock prices fell and Treasury yields dipped as investors began a week filled with accelerated data releases following the longest shutdown of government in US history. Nvidia, the chipmaker that is a bellwether for artificial intelligence, will report its quarterly earnings on March 28. The results of this sector are expected to be closely scrutinized by investors looking for signs of waning interest in the area which has been driving the recent stock market rally. In early trading, all three major U.S. indexes were modestly lower. The U.S. Federal Reserve is expected to implement its third rate reduction of the year next month, despite the absence of official economic statistics. This week, to make up for lost ground, promises a number of reports that have been pending, including Labor Department's September Employment Data scheduled for Friday. Tim Ghriskey is a senior portfolio strategist with Ingalls and Snyder in New York. There's a lot of uncertainty as to what to expect after several months of data. Over the next few weeks, this will be a major focus. Over 90% of companies in the S&P 500 have reported their third-quarter results. LSEG data shows that 83% of these companies have reported results above consensus. Nvidia will release its highly anticipated results on Tuesday, but retailers like Home Depot, Target, and Walmart should also shed light on consumer demand. The Dow Jones Industrial Average dropped 88.54, or 0.19% to 47,057.29; the S&P 500 declined 8.70, or 0.12% to 6,725.70; and the Nasdaq Composite was down 11.24, or 0.04% to 22,891.44. European stocks fell as investors resisted placing large bets in anticipation of the long-delayed U.S. employment data. MSCI's global index of stocks fell by 2.35 points or 0.24% to 993.08. The pan-European STOXX 600 fell by 0.49% while Europe's broad FTSEurofirst 300 fell by 11.70 points or 0.51%. Emerging market stocks increased by 2.37 points or 0.17% to 1,387.98. MSCI's broadest Asia-Pacific share index outside Japan closed up 0.12% to 714.73, while Japan's Nikkei dropped 52.62 or 0.10% to 50,323.91. Treasury yields fell amid concerns about AI growth, and traders analyzed whether the Fed would cut rates next month after delayed inflation and unemployment reports became available. The yield of the benchmark 10-year U.S. notes dropped 1.3 basis points from Friday's 4.148% to 4.135%. The 30-year bond rate fell 1.3 basis point to 4.7328%, from 4.746% on Friday. The yield on the 2-year note, which is usually in line with expectations of interest rates from the Federal Reserve (usually a laggard), rose 0.4 basis point to 3.619%. Currency traders were on alert when the official U.S. economy data resumed, especially after some non-government statistics such as ADP’s National Employment index which suggested a softening of the labor market. The dollar index (which measures the greenback versus a basket including the yen, euro and other currencies) rose by 0.14%, reaching 99.46. Meanwhile, the euro fell 0.2% to $1.1597. The dollar gained 0.42% against the Japanese yen to reach 155.19. Investors weighed fears of an oversupply against looming sanctions on Russia's Lukoil. Crude prices dipped after plummeting 4% the previous session. U.S. crude oil fell by 0.3% to $59.91 per barrel. Brent fell by 0.26% to $64.22 a barrel. Gold slipped against a stronger dollar. Spot gold dropped 0.36%, to $4.064.43 per ounce. U.S. Gold Futures dropped 0.5% to $4.067.20 per ounce.
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TotalEnergies Corsica and partners fined $217 Million over fuel deal
The French antitrust authority fined TotalEnergies and Rubis a total of 187 million euro ($217.3) for an anticompetitive agreement that increased fuel prices in Corsica. The island's population is just over 350,000 and it relies heavily on automobiles for transport. All fuels are imported through DPLC depots, which are jointly owned by Rubis TotalEnergies, EG Retail, and TotalEnergies. The watchdog stated that between 2016 and 2023, no other company is allowed to use these depots. The watchdog stated that the agreement reserving the use of Corsican depots for DPLC shareholders only is anticompetitive, and will likely shut out competitors at the expense of consumers. TotalEnergies, EG Retail and EG Retail didn't respond to a comment request immediately. Rubis' spokesperson stated that the company is evaluating the decision of the authority. An investigation was launched in response to a complaint filed by Ferrandi, a fuel distributor from the Mediterranean island. The watchdog said that outsiders like Ferrandi had to buy their fuel at higher prices because their competitors imposed conditions. TotalEnergies received a fine of 115,8 million Euros. Rubis was ordered by the court to pay 64,7 million euros and EG Retail, a smaller company was fined seven million euros. Companies can appeal the fines, but the appeal process will not suspend payment.
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Investors focus on US data as gold prices fall
The gold price fell on Monday as a result of the stronger dollar, and investors' reduced expectations for a U.S. rate cut in January. Investors were also awaiting delayed economic data that could provide clues about the Federal Reserve policy. As of 10:27 ET (1427 GMT), spot gold was down by 0.2%, at $4,070.80 an ounce. U.S. Gold Futures for December Delivery eased 0.6%, to $4.071.40 an ounce. Dollar-priced gold is now more expensive for holders of currencies other than the dollar. David Meger said that there is "some choppy trading" on the market ahead of what will be expected to become a flood of economic data, now that the U.S. Government has reopened. "Right Now, there is a lower expectation of additional Fed rate reductions, which has dented gold's optimism." The Fed minutes of its last meeting where they cut rates by 25 basis point are scheduled for Wednesday. Also on the calendar this week is September's jobs data, which will be released on Thursday. A growing number of Fed policymakers are hawkish about rate cuts at the next central bank meeting in December. The CME FedWatch tool shows that traders are now pricing in a probability of 45% for a rate cut of 25 basis points in December. This is down from 60% last week. The CME FedWatch tool shows that at least four Fed speakers are scheduled to speak in the afternoon, including Governor Christopher Waller, and New York Fed president John Williams. Gold is an asset that does not yield any interest, so it tends to do well in low-interest rate environments. Analysts at Scotiabank estimate that gold prices will be $3,800/oz in 2026, up from $3,450/oz currently. They cite uncertain economic conditions as well as a possible decline in interest rates. Other than that, silver spot rose by 0.4%, to $50.75 an ounce. Platinum fell by 0.3%, to $1.537.16, while palladium dropped 0.1%, to $1.386.18. (Reporting and editing by Shilpi Mahumdar in Bengaluru)
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Former leader of Spain's Valencia Region grilled by parliament over deadly flooding
Carlos Mazon said on Monday that the authorities didn't know people were drowning, when he was interrogated for hours about the handling of the floods of last year that killed 229. Mazon announced on 3 November that he was resigning under pressure from all sides of the political spectrum. However, he remains under close scrutiny. Mazon was accused by the leader of the hard-left Podemos party of being personally liable for the deaths. The spokesperson of the leftist Catalan ERC party said that he should go to jail. Mazon's testimony at the commission of inquiry was followed by victims' families outside Madrid's lower house. Several people who were caught in the floods also gave their testimony. "NO ONE WAS AWAREN" Mazon, who was accused of inaction by some lawmakers, countered the authorities' ignorance of the magnitude of the disaster as floodwaters swept through Valencia, October 29, 2024 causing billions and millions of euros worth of damages. Mazon stated that "no one knew the magnitude of what was happening, no one knew people were drowning." He didn't provide any additional details about that day, such as a long lunch with a journalist in a restaurant or a 45 minute period when his bodyguards weren't present and records showed that the chief of emergency services was trying to contact him. He said to the parliament that he couldn't give an exact timetable of his location: "I can't be precise about exact timings." He said that "nothing" would have changed if he left the meeting earlier and had arrived at the crisis committee meeting. HE SAYS MESSSAGES OF WARNING ARE NOT HIS RESPONSIBILITY Idoia Sagastizabal, a PNV Basque Party lawmaker, echoed criticism from others who said that his version of events had repeatedly changed. "There are many gaps in your versions." Mazon defended the missed calls of his emergency chief, and claimed that it was not his fault that the official flood warning message reached residents' phones hours after the disaster had occurred. Many people were already dead. Gabriel Rufian, spokesperson for the ERC, told Mazon: "I hope that you will pay with your prison sentence for all you have done." He held up photos of victims while demanding Mazon to publicly apologize. Sumar and Socialists in Spain's ruling alliance, both parties criticised the management of the reconstruction funds by Mazon's regional council, which is run by the conservative People's Party. Mazon blamed political strategy for the lack of support by the central government. He said that when he resigned in the beginning of the month he had made mistakes, and he "would have to live with them the rest my life". Mazon's replacement has not yet been sworn in. It is expected that he will be replaced by a PP leader. Reporting by Jesus Calero, David Latona and Alison Williams
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Study finds that deforestation in Brazil’s Cerrado region reduces soybean production potential
According to a study published on Monday, clearing land for agricultural purposes in Brazil's Cerrado tropical Savanna region leads to drier conditions which ultimately harm soybean yields. The study was first shared with and argues that falling yields drive farmers to clear more land. This further accelerates degradation of Brazil's largest biome, the Amazon, and hinders conservation efforts. Zero Carbon Analytics released a press release detailing the findings of their study. "Our new analyses found that farmers clearing native vegetation to plant soy have climate impacts far beyond the cleared areas," the group said. Brazil's Cerrado Region covers more than 2,000,000 square kilometers (772204 square miles) or 23% of its territory. If land in the region had not been cleared since 2008 for soy, the region would have produced $9.4 billion more soy. This is nearly 8% more than its total soy production over the 10 year period covered by the study. Zero Carbon Analytics analyzed soy production and yields from 840 Cerrado municipalities between 2013 and 2023. They also looked at rainfall and aridity. According to Brazilian crop agency Conab data going back to 2008/2009, Brazil's soy yields have a tendency to increase. It grew by 38% in 2024-2025, thanks to new technologies such as GMO seeds and improved farm inputs. Joanne Bentley McKune, author of the peer-reviewed study, said, "Our analysis doesn't deny that production has increased." The study shows that production is increasing despite climate losses. Bentley-McKune stated that the difference between what soy could have produced and what actually was produced, estimated at 34 million tons due to deforestation of the Cerrado between 2013-2023, shows "the gap" between what we achieved and what we could have achieved if these technological advances had not been made. Brazil, which is the world's largest soy exporter and producer, and also a major soy supplier to China will harvest around 178 million tonnes in the current crop season. (Reporting and editing by Paul Simao.)
US construction spending increases in August
The U.S. construction sector unexpectedly recovered in August, driven by renovations of single-family homes and higher mortgage rates.
Census Bureau of the Commerce Department reported on Monday that construction expenditures increased by 0.2% following a 0.2% increase in July, which was upwardly reviewed. The economists polled had predicted that construction spending would decline by 0.1% following a 0.1% drop in July. In August, spending decreased by 1.6% compared to the same period last year. The report was originally due on October 1 but the record 43-day federal shutdown delayed it. The report was published first, and the September monthly employment report is now set to be released on Thursday.
In August, spending on private construction projects increased by 0.3%. The investment in residential construction increased by 0.8%. Outlays for new single-family projects fell by 0.4%. The spending on multi-family units, which make up a small part of the housing market rose by 0.2%.
Renovations are likely to be the reason for the increase in residential construction. Data from mortgage finance agency Freddie Mac shows that mortgage rates have fallen from their high levels in August, as the Federal Reserve has resumed interest rate reductions. This could boost construction in September. Mortgage rates are no longer falling as the U.S. central banks have indicated a reluctance in lowering rates next month. The tepid job market also discourages potential homebuyers. In August, the number of new housing units was high, which may have discouraged builders from taking on new projects.
In August, investment in non-residential structures such as offices and factories decreased by 0.3%. The amount spent on public construction projects remained unchanged. The spending on construction by state and local governments was unchanged as well, whereas federal government expenditures declined 0.8%. Lucia Mutikani, reporting; Paul Simao, editing.
(source: Reuters)