EXTRACTED: Daily News Clips 7/14/23

PIPELINE NEWS

• Des Moines Register: Iowa regulators order notification of landowners that pipeline firm seeks eminent domain

• Associated Press: Exxon Mobil buys Denbury, pipeline company with carbon capture expertise, for $5 billion

• Wall Street Journal: Exxon Buys Pipeline Operator, Making Big Bet on Carbon

• WEEK: DIGGING DEEPER: A Co2 pipeline might come to Central Illinois — what does that mean?

• Bluefield Daily Telegraph: Capito Says ‘Activist Court” Won’t Stop Mountain Valley Pipeline 

• KPRC: Chemical release causes massive fire to erupt at INEOS pipeline in Brazoria County, company says

• CTV: Alberta Energy Regulator fines Calgary company for building pipelines without a licence

• Seafood Source: California commercial fishermen set to receive second oil spill settlement in September

WASHINGTON UPDATES

• E&E News: These activists want Biden world to ‘squirm in their seats’

• NPR: Biden Frames His Clean Energy Plan As A Jobs Plan, Obscuring His Record On Climate 

• Politico: GOP Budget Wishlist For EPA, DOI Seeks Deep Spending Cuts, Culture War Mandates 

• E&E News: Petition Urges Interior To End ‘Expedited’ Offshore Drilling 

• Huffington Post: Extreme Heat Is Pushing The U.S. Toward A Grim New Fossil Fuel Milestone

• Environmental Health News: Oil And Gas Production Responsible For $77 Billion In Annual US Health Damages: Study. 

• E&E News: States Struggle To Plug Oil Wells With Infrastructure Law Cash

• U.S. Dept. of Energy Office of Fossil Energy and Carbon Management: Regional Initiative to Accelerate Carbon Management Deployment: Technical Assistance for Large Scale Storage Facilities and Regional Carbon Management Hubs

EXTRACTION

• Reuters: Countries warn against over-reliance on carbon capture tech

• Climate Change News: EU to push for fossil fuel phaseout ‘well ahead of 2050’ at Cop28

• The Hill: Key green bill narrowly clears vote in European Parliament

• Associated Press: Climate talks chief, who also heads oil company, says world must ‘attack all emissions, everywhere’

• Reuters: Energy Transfer signs deals for Louisiana Lake Charles export plant

• ETF Trends: U.S. LNG Export Capacity Continues to Grow, Benefitting Midstream

CLIMATE FINANCE

• Politico: 4 takeaways from House Republicans’ anti-ESG hearing

TODAY IN GREENWASHING

• Guardian: After two years of real progress on climate, a European ‘greenlash’ is brewing

OPINION

• Miami Herald: If we want to fully protect the Amazon, we must phase out fossil fuels

• Bloomberg: It’s Easy To Make Oil Companies ESG
  

PIPELINE NEWS

Des Moines Register: Iowa regulators order notification of landowners that pipeline firm seeks eminent domain
Donnelle Eller, 7/13/23

“Iowa regulators have issued an order to notify landowners who have declined to sell easements for Summit Carbon Solutions’ proposed $4.5 billion carbon capture pipeline that the Ames company plans to seek eminent domain powers, which it could use to force them to allow the pipeline on their property,” the Des Moines Register reports. “The Iowa Utilities Board’s order this week outlines the eminent domain notices that will be sent to landowners as well as officially set the hearing on granting a permit for the pipeline. Expected to last months, the hearing is set to begin at 10 a.m. Aug. 22 at the Cardiff Event Center in Fort Dodge. The order came as Summit responded to two legal challenges that could trip up the project: a motion to dismiss and a motion that questions whether the schedule the board has set for the hearing could prevent landowners who object to eminent domain from having a fair chance to present their case. About 520 landowners in Iowa have declined to sign easements that give the company access to build across their property, Summit said Thursday. They are about 30% of the landowners in the project’s path, the company said… “Brian Jorde, an attorney representing George Cummins, a Floyd County landowner, said in his motion to dismiss Summit’s petition that the carbon dioxide the pipeline would transport isn’t a hazardous liquid, as defined in state law, which covers materials like crude oil, refined petroleum products and liquid fertilizers. Pipelines carrying “liquefied carbon dioxide” also fall under the Iowa Utilities Board’s jurisdiction. But Jorde argues that the carbon dioxide the company plans to capture from ethanol plants would be in a “supercritical” phase, somewhere between a gas and a liquid. Two chemical engineers quoted in Jorde’s motion outlined the differences between a liquid and a supercritical fluid. “When CO2 exceeds the critical point through a combination of pressure and temperature applied, CO2 is no longer in the liquid or gas state and instead is in the different and distinct supercritical fluid state,” Jasper Hardesty of New Mexico wrote. “Liquid or liquefied carbon dioxide is not the same as supercritical carbon dioxide.” “…Jorde told the Register the switch doesn’t give landowners sufficient time to prepare. He also said the utilities board staff lacks enough time — estimated to take hundreds of hours — to evaluate the parcels that could be subject to eminent domain. “The new hearing schedule violates the procedural due process rights of … landowners by requiring them to testify approximately four months earlier than previously scheduled and requiring them to testify about the proposed pipeline’s impact to their land before the party with the burden of proof — Summit — testifies,” Jorde wrote.

Associated Press: Exxon Mobil buys Denbury, pipeline company with carbon capture expertise, for $5 billion
7/13/23

“Exxon Mobil is buying pipeline operator Denbury, the beneficiary of changes in U.S. climate policy that intended to reduce the amount of emissions released into the atmosphere,” the Associated Press reports. “The all-stock deal valued at $4.9 billion puts Denbury’s capabilities related to carbon capture front and center… “Exxon Mobil Corp. said Thursday that the acquisition gives it the largest owned and operated carbon dioxide pipeline network in the U.S. at 1,300 miles, including nearly 925 miles of CO2 pipelines in Louisiana, Texas, and Mississippi – located within one of the largest U.S. markets for CO2 emissions, as well as 10 strategically located onshore sequestration sites. “Acquiring Denbury reflects our determination to profitably grow our low carbon solutions business by serving a range of hard-to-decarbonize industries with a comprehensive carbon capture and sequestration offering,” Exxon CEO Darren Woods said in a prepared statement. Aside from Denbury’s carbon capture and storage assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations. The operations consist of proved reserves totaling over 200 million barrels of oil equivalent, with 47,000 oil-equivalent barrels per day of current production.”

Wall Street Journal: Exxon Buys Pipeline Operator, Making Big Bet on Carbon
Collin Eaton, 7/13/23

“Exxon Mobil is paying almost $5 billion to buy Denbury, a pipeline operator that moves carbon dioxide, increasing its bet that it can make money collecting other companies’ emissions,” the Wall Street Journal reports. “Dallas-based Denbury, which emerged from bankruptcy in 2020, has been one of the big winners from the Biden administration’s signature climate bill by expanding its foothold in carbon capture and applying for billions in government tax credits. Exxon, which has been sitting on more than $32 billion in cash, has been known to be on the hunt for deals. Exxon CEO Darren Woods said the acquisition “gives us the opportunity to play an even greater role in a thoughtful energy transition, as we continue to deliver on our commitment to provide the world with the vital energy and products it needs.”

WEEK: DIGGING DEEPER: A Co2 pipeline might come to Central Illinois — what does that mean?
Lizzie Seils, 7/13/23

“As state and federal agencies look to lower carbon emissions within the coming decades, Wolf Carbon Solutions says capture and pipeline technology is a necessary tool to make that happen,” WEEK reports. “The Colorado-based, Canada-owned company’s proposal is awaiting approval from the Illinois Commerce Commission… “Peoria City Councilmember Denise Jackson will hold a town hall with WCS and BioUrja, a local ethanol plant that has not committed to any agreement with the pipeline. The town hall will be from 6 to 8 p.m., July 26 at the Carver Center. While it’s put on by Jackson, she said anyone with concerns about the pipeline is welcome to attend. Additionally, the Sierra Club of Illinois will host victims of the Satartia, Mississippi, pipeline rupture on August 26 at the Southside Community Center. A time has not been set yet… “Daurice Coaster is the president of Nourish, a non-profit comprised of Southside residents. She is also a member of the Illinois Sierra Club. For her, the pipeline burst in Satartia, Mississippi, is a cautionary tale from 2020, which left dozens of residents hospitalized. “When you take Carbon dioxide from a gas to a liquid, it makes it highly, highly volatile,” Coaster told WEEK. “People who were approximately half a mile away from the explosion site had about 8 seconds before they lost consciousness.” She’s spoken with some of those victims. While no one died, one man told Coaster he and others had to be revived because they had no oxygen… “First district Peoria City Councilwoman Denise Jackson is concerned about contingency plans in the face of failure. “I’m not sure that we’ve got it figured out correctly,” Jackson told WEEK. “If something were to happen we’ve got neighboring communities: East Peoria, Creve Coeur, Downtown Peoria. This could affect the entire region.” “People have lots of questions in terms of safety, contingencies, and once again the air quality and the environment,” Jackson continued.

Bluefield Daily Telegraph: Capito Says ‘Activist Court” Won’t Stop Mountain Valley Pipeline 
Charles Owens, 7/14/23

“The 4th Circuit Court of Appeals won’t be successful in stopping the long-delayed Mountain Valley Pipeline project, according to U.S. Senator Shelley Moore Capito, R-W.Va., who believes the latest stay issued against the natural gas pipeline project will end up before the U.S. Supreme Court,” the Bluefield Daily Telegraph reports. “The court issued its latest stay against the West Virginia and Virginia-based pipeline project last week, despite the U.S. Congress approving legislation last month requiring all necessary permits be issued for construction of the Mountain Valley Pipeline. The same legislation was signed into law by President Joe Biden. Capito said the court won’t be able to stop the pipeline, nor will investors in the project walk away from it. “I am seriously totally astounded that the politicized court — the circuit court — would come in when Congress has spoken,” Capito told the Telegraph. “We spoke loud and clear six weeks to two months months ago that the Mountain Valley Pipeline is complete, all of their OKs and their permits are issued, and they should be moving ahead with hiring the thousands of West Virginias who will complete this.”

KPRC: Chemical release causes massive fire to erupt at INEOS pipeline in Brazoria County, company says
7/13/23

“Massive flames erupted in Brazoria County Thursday due to a chemical release in pipelines at an INEOS remote valve site, a spokesperson for the company said,” KPRC reports. “The Brazoria County Fire Marshal’s Office said the fire emergency happened near FM 2917 and FM 2004. According to INEOS, ethylene and propylene gases were released. What are ethylene and propylene, the chemicals released in the INEOS pipeline explosion in Brazoria County? Company and local emergency responders were at the scene. No injuries were reported. A spokesperson for INEOS said affected segments of the pipelines have been isolated. The cause of the fire is undetermined at this time. An air monitoring crew is being dispatched to the area.”

CTV: Alberta Energy Regulator fines Calgary company for building pipelines without a licence
Michael Franklin, 7/13/23

“The provincial government’s regulator for the oil and gas industry has fined a Calgary company it says built pipelines without acquiring proper licences first,” CTV reports. “The Alberta Energy Regulator (AER) ordered AlphaBow Energy Ltd. to pay $25,000 after it built two pipeline segments in November 2021 near Hardisty, Alta. The body says it only became aware that the pipeline had been built when AlphaBow approached it for a pipeline pressure test on Nov. 17, 2021. “While AlphaBow had applied for pipeline licences, the AER had not approved the applications prior to construction,” the agency wrote in a statement. “As a result, the AER ordered the company to stop work, issued two notices of noncompliance, and launched an investigation.” The AER says the fine is based on the “seriousness of the contravention” and its effect on public safety, the environment and Alberta’s resource production.

Seafood Source: California commercial fishermen set to receive second oil spill settlement in September
Nathan Strout, 7/12/23

“California commercial fishermen and seafood processors as well as other coastal property owners and businesses could be awarded a second settlement as a result of an oil spill near Huntington Beach in October 2021,” Seafood Source reports. “In October 2021, approximately 25,000 gallons of crude oil were discharged from a cracked pipeline owned and operated by Amplify Energy and its subsidies near Huntington Beach, according to a federal grand jury indictment against the oil company. The jury accused Amplify of acting negligently by “operating the pipeline with an understaffed and fatigued crew” and failing to properly respond to multiple alarms. Following the spill, the California Department of Fish and Wildlife shut down the area for testing, preventing commercial fishermen from accessing a valuable fishing area. Commercial fishermen, processors, and other stakeholders were quick to file suit… “The U.S. Department of Justice also launched an investigation into the oil spill, ultimately resulting in a plea agreement with Amplify in August 2022 comprised of a USD 7.1 million (EUR 6.4 million) criminal fine USD 5.8 million (EUR 5.2 million) in compensation for federal programs. “The substantial financial penalties and compliance measures required by the plea agreements demonstrate the federal government’s resolve to punish any entity that causes environmental damage,” Acting United States Attorney Stephanie S. Christensen said. “This oil spill affected numerous people, businesses and organizations who use the Southern California coastal waters. The companies involved are now accepting their responsibility for criminal conduct and are required to make significant improvements that will help prevent future oil spills.”

WASHINGTON UPDATES

E&E News: These activists want Biden world to ‘squirm in their seats’
Robin Bravender, 7/13/23

“Usually, when Michael Greenberg is on a stage, he’s holding a banner and loudly chanting at Democrats about why he thinks the Biden administration’s energy policies are destructive. So it was a little surreal, he joked at a recent happy hour affair, to be hosting an event instead of trying to shut it down. Greenberg, 29, is the founder of Climate Defiance, an activist group that wants to make powerful Democrats uncomfortable by disrupting their events,” E&E News reports. “…The climate activists spent those first three months barging into speeches and fundraisers headlined by Biden administration officials and Democratic lawmakers, including White House climate adviser Ali Zaidi and West Virginia Sen. Joe Manchin. On Wednesday evening, they charged onto the field at the Congressional Women’s Softball Game, an annual contest that pits lawmakers against reporters… “They’re trying to get the attention of the White House, the press, activists and donors. The small but dedicated crew of youth-led activists is firmly on the radar of Biden administration officials who have come to expect them during panel discussions and speeches. They’ve recruited big-name supporters, including actress Jane Fonda, author Bill McKibben and New York Democratic Rep. Jamaal Bowman. They’ve been mentioned in media outlets — the leaders are proud to note — including The New York Times, The Washington Post, The New Yorker and Bloomberg… “Their mission includes: Pushing Biden to end fossil fuel extraction on federal lands and waters, making “support for any fossil fuels as unacceptable on the left as opposing abortion or gay marriage,” and making “clear to Democratic lawmakers that the youth vote will only deliver for them if they deliver for us.” Their method for getting noticed: Strike strategically. Since then, the group has disrupted events featuring Zaidi, White House climate aide John Podesta and Energy Secretary Jennifer Granholm. They interrupted Minnesota Democratic Sen. Amy Klobuchar’s event in May, later tweeting out the video with the message: “BREAKING: we just made the pro-oil Senator Amy Klobuchar flee the stage at her book launch party.”

NPR: Biden Frames His Clean Energy Plan As A Jobs Plan, Obscuring His Record On Climate 
Eric McDaniel, 7/13/23

“As part of President Biden’s recent ‘Bidenomics’ campaign push, aides from across the administration and close allies have been dispatched to events across the U.S. to try to convince people that the nation’s strong economy is the result of the president’s programs and policies,” NPR reports. “The message sweeps in Biden’s Inflation Reduction Act, a law that includes $369 billion in climate investments as a major step in the fight against climate change. But the emphasis has shifted to the number of jobs created by the projects, sidelining what the projects collectively mean for the push to limit greenhouse gas emissions… “In March, Biden approved a large drilling project, known as Willow, on federal land in Alaska, north of the Arctic Circle, provoking intense backlash from environmental groups and young, climate-motivated voters. ‘President Biden is by far the best climate president we’ve had, but he’s also broken some key climate promises,’ Ed Maibach, who studies climate communication at George Mason University, told NPR. ‘Those broken promises have been a profound disappointment to some of his voters, especially young voters.’” 

Politico: GOP Budget Wishlist For EPA, DOI Seeks Deep Spending Cuts, Culture War Mandates 
Catherine Morehouse, Ben Lefebvre, 7/12/23

“The Republican-led committee’s bill would force Interior to hold quarterly onshore oil and gas lease sales and twice-yearly offshore lease sales for the Gulf Of Mexico and Arctic waters off Alaska,” Politico reports. “At the same time, it would cut $255 million from last year’s enacted levels for the Bureau of Land Management and $9.96 million from the Bureau of Ocean Energy Management, the two agencies in charge of energy production on federal land and water. It would prevent Interior from using appropriation dollars to hold lease sales for wind energy projects in Idaho or in certain areas off the coast of Florida until the Comptroller General completes reports identifying potential effects on the respective areas. It would also pare nearly $150 million from appropriations for the U.S. Geological Survey and slash the Interior Secretary’s office budget by more than half, bringing it to $68 million.”

E&E News: Petition Urges Interior To End ‘Expedited’ Offshore Drilling 
Heather Richards, 7/12/23

“A coalition of environmental groups is asking the Biden administration to scratch 40-year-old rules that can greenlight oil and gas development in the Gulf of Mexico without robust environmental review,” E&E News reports. “The petition sent Wednesday to the Bureau of Ocean Energy Management asks for an immediate end to ‘categorical exclusions’ inked in the early 1980s for development, exploration and production plans in the Gulf of Mexico that allow regulators to issue approvals without doing extensive, location-specific environmental reviews. The petitioners — which include the Center for Biological Diversity, Healthy Gulf and the Sierra Club — said the exclusions are outmoded now that the climate impact of oil and gas dependence is well-understood. They also argue that disasters like the Deepwater Horizon explosion of 2010 underscore the need for rigorous environmental analysis before approving any drilling activity.”

Huffington Post: Extreme Heat Is Pushing The U.S. Toward A Grim New Fossil Fuel Milestone
Alexander C. Kaufman, 7/11/23

“The United States is set to use more natural gas to generate electricity than ever before this summer as extreme heat sends demand for air conditioning skyrocketing,” the Huffington Post reports. “In its latest monthly forecast, the U.S. Energy Information Administration projected the country to burn 4% more gas in July and August this year than during the same months of 2022. For weeks now, heat waves have clocked unprecedented triple-digit temperatures across the U.S., from Puerto Rico to the Pacific Northwest. The combination of global warming and El Niño temperature patterns is only expected to worsen as the months go on, spurring more Americans to crank electricity-hungry air conditioning units to avoid the deadly effects of overheating. “This is an interesting time to monitor the United States’ electricity mix,” EIA Administrator Joe DeCarolis said in a press release announcing the latest forecast. “As coal provides less and less power to the grid, we expect the contributions of natural gas and renewables in particular to increase.” “…The growth of those zero-carbon sources of electricity may only temper the effects of surging gas use. Since photovoltaic panels and wind turbines only generate electricity sometimes, gas has become the nation’s primary power source, both as a replacement for coal and as backup for renewables.”

Environmental Health News: Oil And Gas Production Responsible For $77 Billion In Annual US Health Damages: Study. 
7/13/23

“As the nation’s oil and gas output reaches record highs, new research shows that the harms from this boom go well beyond cranking up global temperatures,” Environmental Health News reports. “According to the study, published in May in Environmental Health Research, air pollution from fossil fuel production alone kills 7,500 people a year in the U.S., while exacerbating 420,000 existing asthma cases and triggering 2,200 new incidences of childhood asthma. Health damages from the three air pollutants studied — ozone, nitrogen dioxide and fine particulate matter — carry an annual price tag of $77 billion. For years, the fossil fuel industry has touted natural gas — which is mainly composed of methane — as a safer “bridge fuel” between coal and renewable energy. “There’s been a lot of people talking about the health benefits of the coal to gas transition in the power sector,” Buonocore said. This study suggests these health benefits have been overblown.”

E&E News: States Struggle To Plug Oil Wells With Infrastructure Law Cash
Shelby Webb, 7/14/23

“Across Schuyler Wight’s two West Texas ranches, about 250 abandoned oil and gas wells sit open and unused, creating a link from the dusty surface to smelly chemicals and gases thousands of feet underground,” E&E News reports. “Some of the wells are constantly bringing up noxious liquid, creating poisonous puddles and pools across Schuyler’s land that have killed cattle. Other wells bubble with methane, releasing the greenhouse gas silently into the air. ‘Over time with these wells, the casing rusts, they get pipes stuck. There’s caverns that form, there’s all kinds of crazy things that can happen,’ Schuyler told E&E. ‘It’s an expensive process to go out there and fix those once things get too old.’ There may be as many as 800,000 orphaned wells across the country, according to some estimates. In 2021, states reported 126,806 to the Department of Interior, although many experts say that number vastly understates the problem. Along with being eyesores, the wells may be polluting groundwater and are estimated to be the 10th largest source of methane emissions in the U.S., according to a study by McGill University in Canada.”

U.S. Dept. of Energy Office of Fossil Energy and Carbon Management: Regional Initiative to Accelerate Carbon Management Deployment: Technical Assistance for Large Scale Storage Facilities and Regional Carbon Management Hubs
7/13/23

“[The] Office of Fossil Energy and Carbon Management Project Selections for FOA 2799: Regional Initiative to Accelerate Carbon Management Deployment: Technical Assistance for Large Scale Storage Facilities and Regional Carbon Management Hubs: Supporting Communities and Industry for Mid-Atlantic Offshore Carbon Storage Hub Development — Battelle Memorial Institute (Columbus, Ohio) intends to establish a foundation for a carbon management hub along the Mid-Atlantic Outer Continental Shelf from northern Virginia to Massachusetts to help meet regional decarbonization goals set by states, communities and industry… Project WyoTCH: Developing a Roadmap for a Sustainable Carbon Hub — Carbon Solutions LLC (Okemos, Michigan) plans to develop a carbon management hub roadmap that will serve as a planning document for the Project WyoTCH hub, as well as a set of lessons learned for future open-access carbon hub development…  CUSP: Four Corners Regional Initiative — New Mexico Institute of Mining and Technology (Socorro, New Mexico) intends to implement a regional initiative to accelerate deployment of carbon management within the Four Corners region by providing technical and engagement the support for stakeholders within the region to develop a framework to accelerate establishment of a carbon management hub… Anadarko Basin Carbon Management Hub — Oklahoma State University (Stillwater, Oklahoma) plans to establish a carbon management hub focused on developing carbon management infrastructure at a geological storage complex in the north-central Anadarko Basin… Liberty Carbon Management Hub — University of North Dakota (Grand Forks, North Dakota) intends to provide technical assistance and engagement to a prospective large-scale carbon management storage hub, with strong emphasis on public engagement activities, environmental justice analysis, and social science research that will support a better understanding of the social landscape of the region in which the hub would be developed… Texas Louisiana Carbon Management Community — The University of Texas (Austin, Texas) plans to respond to carbon management needs and concerns of individuals and communities by establishing and supporting a stakeholder community that will provide accurate and reliable information about carbon management as an emissions mitigation option for the hundreds of industrial and power sector CO2 emissions sources in the area… “Assess and Provide Pertinent Data and Information to an Emerging Carbon Capture, Utilization, and Storage Industry with the Goal of Accelerating CO2 Sequestration in Cook Inlet Region — Alaska Department of Natural Resources (Fairbanks, Alaska) plans to assess and provide pertinent data via the Alaska Carbon Capture, Utilization, and Storage Database to an emerging carbon management industry with the goal of accelerating the development and implementation of CO2 storage within the Cook Inlet Region of Alaska… Oklahoma Geological Survey Coordination of Mid-Continent Carbon Management — Board of Regents of the University of Oklahoma (Norman, Oklahoma) intends to position the Oklahoma Geological Survey for the geological implementation and seismic hazard mitigation of carbon management while fostering community, industry, and state agency engagement… A Play-Based Exploration of Carbon Capture and Storage Potential of the Illinois Basin — Board of Trustees of the University of Illinois (Champaign, IL) plans to build a database using existing subsurface, surface, and societal data for entities screening areas of Illinois for commercial geologic CO2 storage… “Alabama Carbon Storage: Data Sharing and Engagement — Geological Survey of Alabama (Tuscaloosa, Alabama) intends to accelerate the responsible development of large carbon management projects in the Gulf Coastal Plain of Alabama and offshore in state waters through the development of a publicly accessible database of geologic carbon storage models and data across the region… “The Central Appalachian Partnership for Carbon Storage — The Pennsylvania Department of Conservation and Natural Resources (Harrisburg, Pennsylvania) intends to accelerate the deployment of carbon management in Pennsylvania and West Virginia by reducing barriers to entry to carbon storage project opportunities…”

EXTRACTION

Reuters: Countries warn against over-reliance on carbon capture tech
Kate Abnett, 7/14/23

“Technologies to capture CO2 emissions are no substitute for a drastic cut in fossil fuels and their use should be limited, a group of countries warned on Friday, as tensions grow over the role of climate technologies ahead of this year’s COP28 summit,” Reuters reports. “In a statement, due to be published on Friday and seen by Reuters, the European Union and 17 nations including Germany, France, Chile, New Zealand and climate-vulnerable island states the Marshall Islands and Micronesia, said the focus should be on phasing out fossil fuels. “Abatement technologies must not be used to green-light continued fossil fuel expansion,” the statement said. Abatement technologies include carbon capture and storage (CCS), where CO2 emissions are sucked out of the atmosphere and stored underground. Such technologies “must be considered in the context of steps to phase out fossil fuel use, and should be recognised as having a minimal role to play in decarbonization of the energy sector,” the statement added. It was also signed by ministers from Austria, Colombia, Denmark, Ethiopia, Ireland, the Netherlands, Palau, Samoa, Senegal, Spain and Vanuatu. Countries disagree on the role CCS can play in fighting climate change. The issue is expected to come up at the UN COP28 summit in November, when delegates from nearly 200 nations will debate how to cut planet-heating emissions faster. Oil and gas producers including COP28 host the United Arab Emirates have backed CCS technology as a route to tackle emissions while using fossil fuels to produce energy. Other countries warn widespread CCS use risks giving companies a free pass to keep producing oil and gas – and could divert investments away from renewable energy to reduce the outright greenhouse gas emissions causing climate change… “The Marshall Islands’ Climate Envoy, Tina Stege, whose country led the statement, said the group’s position was that CCS should be limited to sectors that lack other CO2-cutting alternatives. “It cannot be the focus. It’s one of the tools, but in a toolkit that has to be about deployment, massive scale up of renewable energy,” she told Reuters.

Climate Change News: EU to push for fossil fuel phaseout ‘well ahead of 2050’ at Cop28
Matteo Civillini, 7/12/23

“The European Union will push for a global pledge at Cop28 to phase out unabated fossil fuels “well ahead of 2050”, EU climate chief Frans Timmermans announced,” Climate Change News reports. “The commitment would mean stopping coal power and eliminating emissions from the oil and gas sector, but with only a minimal role for carbon capture, he added. The EU unveiled its common goals ahead of the climate summit in Dubai this week, at a meeting of the bloc’s environment and energy ministers in Spain. Speaking at the gathering, attended by Cop28 chief Sultan Al Jaber, Timmermans said the EU wants governments to sign up to a pledge with three main elements: tripling renewables rollout by 2030, better energy efficiency, and an accelerated phase-out of fossil fuels with a “residual” role for carbon abating technologies. The last point refers to the use of carbon capture and storage (CCS), an umbrella term for a range of processes that aim to trap CO2 emissions caused by burning fossil fuels. CCS is at the centre of a deeply-divided debate. Oil and gas-producing countries and the industry argue it is necessary to extract climate-damaging gases while the world keeps powering activities with fossil fuels. Campaigners and a host of progressive nations claim it is a loophole for the fossil fuel industry that will prolong the climate crisis. What does “unabated” fossil fuels mean? The Cop28 hosts, the United Arab Emirates, are a big proponent of CCS. In May Al Jaber angered many climate politics watchers when he called for a phase-out of “fossil fuel emissions”, saying that oil and gas will continue to play a role in the foreseeable future. The Cop28 chief has since softened his stance slightly, calling for an accelerated energy transition that “phases down the use of fossil fuels”. The EU’s position outlined by Timmermans shows a similar focus on eliminating ’emissions’ but signposts clearer limits to the use of CCS. “It is important to have a precise understanding of the role of ‘abated fossils’ in a net-zero economy,” the EU climate chief said. “These need to be residual and only in hard-to-abate sectors. And the sector carries the burden of proof in demonstrating this is achievable and proposing credible investment strategies in carbon-abating technologies”. Agreeing on a definition for ‘unabated’ and on a role for CCS is likely to be one of the defining battles at the climate summit in Dubai.”

The Hill: Key green bill narrowly clears vote in European Parliament
ZACK BUDRYK, 7/12/23

“An ambitious environmental bill narrowly survived a key vote in the European Union’s Parliament on Wednesday, sending it back to committee,” The Hill reports. “The EU Parliament voted 336-300 in favor of the Nature Restoration Law, which would create binding ecosystem restoration goals to be met by 2030. Under the measure, member states would be required to develop recovery plans for 20 percent of EU land and sea, with a restoration deadline for the entire continent by 2050. It would not create new protected areas in the continent In a separate vote, the parliament voted 324-312 against rejecting the measure outright. It includes a provision to postpone the binding targets in the event of “exceptional socioeconomic consequences.” The Wednesday vote was considered a make-or-break moment for the legislation, a keystone of a suite of environmental measures known as the European Green Deal. In the weeks leading up to the vote, it was the subject of intense lobbying both for and against. Supporters include environmental organizations and some multinational companies like Nestle, while opponents include the conservative European People’s Party and trade groups representing agriculture and fisheries. “This is good news for nature. For the climate. For business. For our common future,” tweeted Terry Reintke, a member of the EU governing body, representing Germany and co-president of the parliament’s Greens-European Free Alliance.”

Associated Press: Climate talks chief, who also heads oil company, says world must ‘attack all emissions, everywhere’
FRANK JORDANS, 7/13/23

“The head of this year’s United Nations’ climate talks called Thursday for governments and businesses to tackle global warming by reducing greenhouse gas emissions in all regions and sectors if they want to stop the planet from passing a key temperature limit agreed on more than seven years ago,” the Associated Press reports. “Sultan al-Jaber of the United Arab Emirates, who also heads one of the country’s state oil companies, told senior officials from Europe, Canada and China gathered in Brussels that record-breaking heat seen in parts of the world recently shows the need for urgent action to curb emissions. Laying out his strategy for the upcoming COP28 global climate talks in Dubai this fall, al-Jaber said that leaders “must be brutally honest” about what has caused the sharp rise in temperatures since preindustrial times and how to stop them from climbing further. While many fossil fuel companies have pledged to reduce direct and indirect emissions from their operations — known as scope 1 and 2 — many have refused to take responsibility for the scope 3 emissions resulting from sources they don’t own or control, such as consumers using their gas. The latter make up the majority of emissions, and cutting those effectively means reducing demand for fossil fuels. “We need to attack all emissions, everywhere. One, two and three,” al-Jaber said, adding that he plans to bring together governments, major energy producers and heavy emitting industries to develop a practical plan for limiting global warming to 1.5 degrees Celsius (2.7 Fahrenheit) in line with the 2015 Paris climate accord… “Still, al-Jaber said the world must “use every emission-busting tool available, including nuclear, battery storage and carbon capture and removal technologies, especially for the hardest to abate sectors.”

Reuters: Energy Transfer signs deals for Louisiana Lake Charles export plant
7/13/23

“U.S. energy company Energy Transfer entered three non-binding agreements to sell liquefied natural gas (LNG) from its proposed Lake Charles export plant in Louisiana,” Reuters reports. “The agreements, called Heads of Agreements (HOAs), total 3.6 million tonnes per annum (MTPA) of LNG, Energy Transfer said in a release on Wednesday. The agreements come even though the U.S. Department of Energy has so far refused to extend Lake Charles’ authorization to sell LNG to non-Free Trade Agreement (FTA) countries beyond December 2025. Energy Transfer, however, has vowed to keep developing Lake Charles even though it usually takes about four years for a project to produce first LNG after construction starts. The company has not yet made a final investment decision (FID) to start building Lake Charles. “These HOAs are important for the successful development of the project, along with the continuation of certain pre-FID work with one of our EPC (engineering, procurement and construction) contractors,” Tom Mason, president of Lake Charles LNG, said in the release. Based on an industry estimate of around $800 million per MTPA, it could cost about $13.2 billion to build the 16.5-MTPA Lake Charles project, before financing and other costs. In one of the three HOAs, Energy Transfer said a Japanese consortium would purchase 1.6 MTPA of LNG for a 20-year term. In another HOAs, a unit of U.S. energy company Chesapeake Energy would supply enough gas to produce 1.0 MTPA of LNG for 15 years and, post liquefaction, a unit of Swiss commodities trader Gunvor would purchase LNG from Chesapeake at a price indexed to the Japan Korea Marker (JKM) for 15 years.”

ETF Trends: U.S. LNG Export Capacity Continues to Grow, Benefitting Midstream
ELLE CARUSO, 7/13/23

“Growth opportunities in the midstream space have largely been focused on natural gas and natural gas liquids,” ETF Trends reports. “The U.S. became the world’s largest liquefied natural gas (LNG) exporter last year, but the space is continuing to grow at a fast pace following Russia’s invasion of Ukraine… “I think what’s also really interesting here is that we’re still seeing customers from  Asia and Europe sign agreements to buy LNG for 20 years,” Stacey Morris, head of energy research at VettaFi, said during a livecast on July 10… “Liquefaction-focused names include Cheniere (LNG), Cheniere Energy Partners (CQP), and NextDecade (NEXT). Currently, Cheniere and Cheniere Energy Partners are the only public liquefaction companies with operating LNG facilities, Morris said. Also operating in the space are the larger, diversified midstream names that own interests in LNG export facilities. This includes Enbridge (ENB) and Kinder Morgan (KMI)… “Additionally, there are several midstream names that help supply LNG facilities. These companies may be operating pipelines that go directly to the LNG export facility. Conversely, they may be operating the pipelines that transport natural gas from a producing region to a major hub. Then, a different pipeline takes that final leg into the facility. Companies that have exposure to this include Enbridge (ENB), Kinder Morgan (KMI), TC Energy (TRP), Enterprise Products Partners (EPD), and DT Midstream (DTM).”

CLIMATE FINANCE

Politico: 4 takeaways from House Republicans’ anti-ESG hearing
ELEANOR MUELLER, ALLISON PRANG, 7/12/23

“House Financial Services Republicans on Wednesday kicked off their “ESG month” with a hearing on ways to shield public companies from pressure on climate and social issues — a GOP exercise that Democrats blasted as anti-free market and anti-diversity,” Politico reports. “At issue in the hearing were investment practices that incorporate environmental, social and governance matters. Republicans used it as a platform to bash the SEC for its role in facilitating the movement. They also targeted proxy advisory firms that advise big investors on how they should vote on shareholder matters before public companies. Here are four key takeaways from the hearing: GOP leadership is targeting the proxy process, the SEC and Europe. House Financial Services Chair Patrick McHenry (R-N.C.) said Congress must revamp the process in which shareholders vote on company matters to prevent what he called “activism.” “To be clear: I support shareholder democracy,” McHenry said. “But it should be their say, not external third parties who exploit the existing process to impose their own social and political beliefs onto American public companies.”

TODAY IN GREENWASHING

Guardian: After two years of real progress on climate, a European ‘greenlash’ is brewing
Nathalie Tocci, 7/12/23

“As climate pledges become reality, opposition to the green agenda is growing. And the populist right is latching on to it,” Nathalie Tocci writes for the Guardian. “When floods swept Europe in July 2021, killing more than 200 people in Germany, Belgium and neighbouring countries, it was a disaster that came as the climate crisis was moving to the top of Europe’s political agenda. All of a sudden, climate was no longer an abstract threat that could be batted into a distant future; it was already here, causing shocking weather events, destroying lives and leaving people homeless. In northern Europe especially, spurred by the Fridays for Future school strikes, the climate crisis had already spilled into politics, pushing policy into action. But in 2021, measurable progress towards the goal of net zero emissions by 2050 began to be made. The EU didn’t just limit itself to ambitious targets, enshrined in laws and regulations. It also put its money where its mouth was… “Yet grey (or rather brown) clouds are now massing on the horizon. Across Europe, worrying signs of a green backlash are surfacing, as citizens and businesses start feeling the costs of the energy transition… “There are two opposing interpretations of this “greenlash”. The first is that pressure is mounting against the green agenda because it is now real… “It is only natural that the “losers” want to make their voices heard – but it is up to politics to channel that dissent, and to find ways of compensating those opposing voices to ensure that their resistance does not derail the journey to net zero… “But the second interpretation says the opposite might be true: the pushback against green policies could be the sign of worse to come. As EU countries such as Spain, Slovakia and Poland prepare for elections later this year, and with European parliament elections in 2024, there is a real risk that rightwing, populist parties will latch on to the “greenlash” and surge back in the polls. While no longer openly climate crisis deniers, they denounce the inequalities and the harm caused to industry they say are exacerbated by climate policies. They call for an “ecological sovereignty”, which, rather than pressing for decarbonisation, insists on the preservation of landscapes from the supposed visual horrors of wind and solar farms, and on the preservation of traditional food and agriculture from the purported abomination of synthetic meats and alternative sources of proteins, such as insects… “If the green divide deepens in Europe, this could slow down the existential race we’re in… “It is here that a political backlash, coupled with the absence of a profit-driven corporate interest, risks derailing Europe’s role in saving people and planet alike.”

OPINION

Miami Herald: If we want to fully protect the Amazon, we must phase out fossil fuels 
Gustavo Petro is president of the Republic of Colombia, 7/12/23

“Our fate is intertwined with that of the Amazon, regardless of where we reside. Only through global climate action can we ensure a sustainable future for our planet. As president of one of eight countries that host this vital forest, Colombia is dedicated to eradicating deforestation, but also to phasing out fossil-fuel development, as the forest’s health hinges on our fragile global climate balance. I am calling on Amazon countries and our partners in the “Global North” to commit to phasing out fossil fuel development, and to do so in a way that protects our right to a just transition to a post-carbon world,” Gustavo Petro writes for the Miami Herald. “…To avoid the point of no return, we need an ambitious transnational policy to phase out fossil fuels. The support of countries like the United States is vital in transforming this vision into reality. The “Global South” countries, endowed with proven fossil-fuel reserves, confront a serious dilemma. On one hand, we could exploit these reserves to generate resources to repay our debts and invest in development, at the cost of devastating the Amazon and exacerbating the climate crisis. On the other hand, we can choose to keep the oil, gas, and coal in the ground, suffering the challenging economic consequences. This situation presents a paradox: Countries in the Global South, including Colombia, have contributed the least to historical emissions, yet we bear the brunt of the climate crisis. Meanwhile, global powers continue to amass trillions of dollars from fossil fuel production. An alternative must emerge. It is unfair for our countries, particularly those sharing expanses of the Amazon, to shoulder the costs alone. Fortunately, there are numerous financial mechanisms that can enable Amazonian countries to implement a just energy transition. Some mechanisms are simple, such as exchanging external debt for climate action. In the case of Colombia, we can allocate a substantial amount of resources to protect the Amazon. Another immediate action to save the Amazon is to establish a multilateral fund that funds environmental protection services by inhabitants of these territories: workers, farmers, and civil society. Transforming Amazon residents into agents of change requires compensating them for safeguarding the land they know best. Colombia has already earmarked $200 million annually for the next 20 years, and we hope that more individuals, organizations, and states will contribute…” 

Bloomberg: It’s Easy To Make Oil Companies ESG
Matt Levine, 7/12/23

“If I tell you that Company X is an oil company, you probably assume that it creates a lot of carbon emissions. Drilling for oil is dirty work, but also the ultimate users of the oil will burn it and create a lot of emissions, and it seems reasonable to attribute those emissions to Company X. If it didn’t drill the oil, they wouldn’t burn the oil. Maybe they would burn some other oil? But that’s not the point. The point is that most people associate oil companies with carbon emissions, pretty reasonably. And so, for instance, environmental, social and governance-focused (ESG) investors might lower the carbon impact of their portfolios by not investing in oil companies,” Matt Levine writes for Bloomberg. “If I tell you that Company Y is an investment firm, you probably assume that it does not itself do a lot of carbon emissions. It’s some people, some desks, some computers. It uses electricity, and its employees probably take business trips on airplanes, but no more than most companies. If you care about carbon emissions, you might ask questions like “is Company Y an ESG investment firm?” or “does Company Y do a lot of investing in coal companies?” or “what are the total carbon emissions of the companies in Company Y’s portfolio?”; you might want to get a broader sense of Company Y’s contribution to carbon emissions beyond the amount of carbon that it uses in its own operations.”