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Germany risks breaking gas funds pledge made at UN climate summit

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Germany risks breaking gas funds pledge made at UN climate summit

The German authorities’s rush to interchange fuel it might not supply from Russia dangers breaking a promise it made on the UN local weather summit a 12 months in the past to finish fossil gasoline financing abroad by the top of 2022.

Germany is contemplating the continued funding of fuel initiatives from preliminary exploration and manufacturing by means of to processing and distribution, mentioned folks aware of the discussions forward of the following UN local weather summit being held in Egypt subsequent week.

Below former chancellor Angela Merkel, Germany was among the many 34 international locations at COP26 in Glasgow that pledged to finish public funding for coal, oil and fuel initiatives abroad.

However within the grip of the power disaster, her successor Olaf Scholz was contemplating persevering with to fund so-called upstream and midstream manufacturing, mentioned the folks aware of the talks forward of COP27.

Requested whether or not latest conferences with Senegal in regards to the growth of gasfields meant it was reneging on its Glasgow dedication, a senior German official mentioned this week that any future financing would include strings hooked up.

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“There shall be no blind help,” he mentioned. Nations receiving German funds “should present that they’re abiding by their [climate] commitments” and each potential fuel funding could be assessed on its “particular person deserves”.

Germany believed fuel was wanted “as a transitional power supply”, the official added. “We reserve the fitting to do what is critical to make fuel obtainable as an power supply, stressing always its transitional nature.”

These aware of the discussions mentioned there was a divide in regards to the new abroad funding coverage, which continues to be being developed, throughout the German authorities, dominated in coalition with the Inexperienced occasion.

Angela Merkel on the opening ceremony of COP26 in Glasgow in November 2021 © Reuters

Germany’s particular local weather envoy, Jennifer Morgan, mentioned just lately that fuel was “a bridge with an finish”, as she ready to steer the negotiations at COP27 on vital facets of funding for local weather change-induced injury.

“We’re not taking a look at contracts for fuel for greater than 15 years . . . Now we have a legally binding greenhouse fuel goal for 2045. We’ll truly peak our fuel use earlier,” she advised a Monetary Occasions convention. “The selections which are made now are actually going to determine whether or not or not the 1.5C [warming] aim stays in sight or not. That’s the battle that’s occurring, not solely within the market, however between firms and international locations.”

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A weak coverage may name into query Germany’s credibility on the worldwide stage and embolden different international locations that signed the pledge however had not but printed up to date insurance policies — reminiscent of Italy — to backtrack, local weather change specialists mentioned. Backsliding “may threat endangering the nationwide, European and international local weather objectives”, one particular person mentioned.

The retreat on phasing out help for fuel is probably going so as to add to strain on EU negotiators at COP27, with the bloc already accused of hypocrisy by poorer fossil fuel-reliant nations.

Upstream fuel is especially contentious because it implies help for brand new fuel exploration and manufacturing, whereas midstream refers to processing and transport. Critics say new upstream initiatives will do little to resolve the rapid fuel scarcity.

The evolving German place has echoes of the communique adopted by G7 leaders at a June summit, hosted by Scholz, at Schloss Elmau, Bavaria. Leaders mentioned investments in liquefied pure fuel have been a “essential response to the present [energy] disaster” and that authorities help for fuel “might be acceptable as a brief response”.

The German authorities additionally mentioned in September, within the textual content of a home power package deal, that as a part of its efforts to interchange Russian fuel provides with “newly developed LNG provides” it will search to faucet overseas reserves of fuel, although this could occur solely “throughout the framework of our commitments below the Paris local weather settlement”.

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Discussions with Senegal, the place Scholz visited in Could, in regards to the growth of the west African nation’s offshore gasfields are seen as a check case. The 2 governments are presently in energetic talks about potential power investments.

One EU diplomat mentioned that there have been considerations about Germany’s push in the direction of fossil fuels however that the nation was not alone: “All European international locations are doubling down on fuel and power safety in the mean time.”

However Alden Meyer, senior affiliate at think-tank E3G, mentioned the continued German help for fuel was “a difficulty of concern”. The COP26 pledge was “one of many sturdy outcomes from Glasgow . . . If there’s some pushback from Germany at this COP that received’t be useful,” he added.

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Gantz threatens to quit Israeli government if no new war plan by June 8

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Gantz threatens to quit Israeli government if no new war plan by June 8

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Benny Gantz has threatened to leave Israel’s emergency government if Prime Minister Benjamin Netanyahu did not commit to a new plan for the war with Hamas in Gaza and its aftermath.

In a televised statement on Saturday evening, Gantz, an opposition figure and former general who joined Netanyahu’s coalition in the aftermath of Hamas’s October 7 attack on Israel, said that his centrist National Unity party would leave the government if his demands were not met by June 8.

Gantz’s ultimatum brings to a head months of tensions within Netanyahu’s government over the handling of the war, and comes just days after defence minister Yoav Gallant slammed Netanyahu for the lack of a postwar plan for Gaza, the enclave Hamas has ruled since 2007.

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Six-month-old baby shot repeatedly during Arizona standoff with child’s father

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Six-month-old baby shot repeatedly during Arizona standoff with child’s father

A six-month-old baby is currently hospitalized after a man allegedly shot the infant several times during an armed home standoff in Surprise, Arizona, about 30 miles north-west of Phoenix.

At about 3am on Friday, the father of the child allegedly broke into the home where the child and mother lived, according to Surprise police. The child’s father did not live in the house, police said, adding that the man held the mother and child hostage for several hours before the mother managed to escape.

According to police, the mother contacted a construction crew and requested that they call 911. They added that she had minor injuries and it remains unclear how she managed to escape.

In a press conference on Friday, Surprise police spokesperson Rick Hernandez said: “She believed the baby was in danger … Officers responded to the residence and, upon arrival, they heard multiple rounds of gunfire coming from inside the residence.”

Hernandez continued: “That was when the officers forced entry. Upon forced entry, our understanding is that officers almost immediately located the injured child, took that injured child and got the child to care.”

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“That baby sustained multiple gunshot wounds and was airlifted to a nearby hospital with serious injuries,” he said, adding that the child’s injuries, which were in its lower extremities, were believed to be non-life-threatening.

While police, including multiple Swat teams, were at the scene, the house caught fire as the child’s father was still inside.

Describing the scene to Arizona’s Family, the news outlet’s drone operator, Hector Holguin, said: “Next thing you know, there was smoke. And after the smoke, there’s a huge ball of fire coming from the back of the house and it just spread from the back all the way to the front … It just progressed. It collapsed the roof.”

As the house burned, a number of nearby residents self-evacuated when they were contacted by police while others chose to shelter in place, said Hernandez, adding: “As the incident progressed, many were asked to leave.”

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Firefighters were able to control the flames by using two ladder trucks to hose down the house as well as the house next door, and were largely able to put out the fire by 4:30pm, Arizona’s Family reports.

It remains unclear how the fire started or what condition the father is in. According to police, an investigation remains under way and the father is not in custody.

“Once the [tactical units] get the clearance to go into that residence, we might have an update on him,” Hernandez said.

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Pietro Beccari: ‘There is no household in the world that doesn’t have [contact with] Louis Vuitton’

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Pietro Beccari: ‘There is no household in the world that doesn’t have [contact with] Louis Vuitton’

It was the image that launched a social media sensation: football superstars Cristiano Ronaldo and Lionel Messi hunched over a chess game set atop Louis Vuitton’s signature luggage. 

That 2022 campaign image broke the record at the time for most likes on Instagram. Now the world’s biggest luxury house, with more than €20bn in annual sales, is looking to capitalise once again on one of the sporting world’s biggest duos in a new campaign featuring rival tennis virtuosos Rafael Nadal and Roger Federer. 

The pairing is a coup for Vuitton chief executive Pietro Beccari. It has been just over a year since he took on one of the luxury sector’s biggest jobs with a mandate to further grow the LVMH-owned brand — which had its origins as a 19th-century luggage-maker — by transforming it into a cultural juggernaut.

“There is no household in the world that doesn’t have [contact with] Louis Vuitton products,” Beccari tells the FT in a video interview from Paris. “There are not a lot of brands that can say they enter the lives of people like we do.”

Beccari is not just talking about sales of handbags and ready-to-wear fashion — though those more than doubled between 2018 and 2022, according to estimates from HSBC. Now, under the guidance of LVMH chief executive Bernard Arnault and Beccari’s leadership, Louis Vuitton is further pushing back luxury’s boundaries in a bid to reach an ever-wider audience.  

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“We are in books, in writing, in editing. We are in music,” the 56-year-old Italian executive says. “We are very much in sports . . . so we are very much covering a spectrum of life that interests people. It is like a magnet for them to become attracted to the brand.”

Beccari’s popular approach to the luxury brand was epitomised by his appointment last year of musician and producer Pharrell Williams to design menswear. What Williams lacked in technical design knowledge he made up for in cultural cachet, transforming catwalk shows into entertainment events featuring elaborate stagings and musical guests such as Jay-Z. The appointment has divided the fashion world, however, with critics lamenting what they saw as the triumph of spectacle over craft at LVMH’s flagship brand. 

Pharrell Williams at Louis Vuitton’s autumn/winter 2024 menswear show in Paris © WireImage

For Beccari, however, weaving a deepening web of overlaps between popular culture, entertainment and brand identity is strategic and key to the megabrand’s future: “For every show Pharrell has done so far, we have always had new songs coming out” — the latest of which was produced for Miley Cyrus and played for the first time at Louis Vuitton’s latest autumn/winter 2024 menswear show. 

Within the same season, “Pharrell also launched the cowboy hat and now you’re seeing that in the US just about everywhere. Even Beyoncé has an album supporting cowboy culture [for which Pharrell has also written a few songs]”, says Beccari. “These are examples of our brand in luxury, not just in selling bags, but having an influence on culture.”

However, the increasing ubiquity of Louis Vuitton presents its own challenge as the brand attempts to balance accessibility against losing the veneer of exclusivity that is essential to commanding the prestige and price points of luxury. “We’ll see if I’m good at it or not in two to three years . . . but this is an eternal dilemma,” says Beccari.

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One of his bets is on creating limited distribution of entry-level products, such as sunglasses and fragrance, in order to create scarcity. This has seen “incredible success”, he notes. “Normally a successful perfume would be in 80,000 or 90,000 stores. We limit it to around 400.” (Louis Vuitton’s store network is much larger than luxury peers such as Hermès and Chanel).

A classic black-and-white photo portrait of a man in a dark jacket and dark buttoned-up shirt
Louis Vuitton’s CEO Pietro Beccari © Nathaniel Goldberg

Louis Vuitton’s control of its distribution network and policy of never discounting its products are another advantage, according to Beccari. He also points to its care system, which allows customers to bring back products purchased from the brand to be repaired. 

“We need to preserve our desirability despite our visibility and that’s the biggest challenge that we have,” Beccari says. “We are making sure that the levers we put in place will pay off in the long term, and I believe that this campaign [with Nadal and Federer] will help increase the desirability of the brand in the long run.”

Still, taking Louis Vuitton to the next level is being made more challenging due to a sector-wide slowdown in luxury sales following a multi-year boom during the pandemic. Brands with a broader, more aspirational client base such as Louis Vuitton have been hit harder by the slowdown than competitors like Hermès, which cater to the top tier of wealthy clients. 

The darkening outlook in the key Chinese market, which fuelled growth for much of the past decade, also presents a challenge to the sector as a whole. “Beccari comes at a pretty difficult time because the industry is going through quite a bit of a slowdown, and notably the rebound in Chinese consumption is not at the level most industry managers would have hoped for a few months ago,” says Erwan Rambourg, global head of consumer and retail research at HSBC. 

Beccari, however, has a naturally competitive nature, having previously been a professional footballer in Italy’s second division in his early life, as well as a coach. Born in a small town in Italy’s Parma region, Beccari was recruited to LVMH from mass market shampoo-maker Henkel in 2006.

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He quickly rose through the ranks at the luxury group, first leading fashion brand Fendi before being appointed CEO of Dior, the group’s second-biggest brand by sales, in 2018. Under his leadership, Dior’s sales quadrupled, according to HSBC estimates, by expanding its market share across women’s and men’s fashion, leather goods, jewellery and homewares. He also oversaw the renovation of Dior’s flagship at 30 Avenue Montaigne in Paris, which includes a museum, restaurant and private suite. 

Beccari has similar ambitions to leverage Louis Vuitton’s pedigree to expand its offering in hospitality. It already operates an airport lounge in Doha and restaurants in Osaka, Chengdu and Seoul. A large-scale project on Paris’s Champs Elysées, still currently under construction, is widely expected to include a Louis Vuitton-branded hotel.

“We have plans in the Champs-Elysées — it is not a secret,” says Beccari. “We are already active in lifestyle and believe that we need to be about much more than just buying bags.”

Two men holding tennis racquets against a snowy mountain backdrop
A behind-the-scenes photo of Roger Federer and Rafael Nadal © Annie Leibovitz

With Federer and Nadal, Beccari is making good on a project he first conceived back in 2007, when he was executive vice-president of marketing and communications at Louis Vuitton, with Antoine Arnault, Bernard Arnault’s eldest son and then-director of communications at Louis Vuitton.

It is a revival of the Core Values campaign that first began in 2007 and ran into the 2010s. The latest iteration shows Federer and Nadal, photographed by Annie Leibovitz, trekking through the jagged peaks of Italy’s Dolomites mountain range, both sporting branded backpacks (Federer in a classic monogram Christopher style and Nadal in a monogram Eclipse version).

Was it difficult getting the two superstars together? “Not at all,” insists Beccari. “They are good friends and see each other privately. It was a rivalry that became a friendship. They are proud of it and I think they set an incredible example.”

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“We sell excellence, quality, success and optimism. In a way, the notion of travel and adventure in life is a mirror of that,” Beccari continues, and the driving force behind LVMH’s sponsorship of this summer’s Paris Olympics. 

For the executive, Nadal and Federer epitomise the Olympic spirit. “I think nobody more than them represents this extreme, ferocious competition that becomes friendship, which is exactly what sports should be.”

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