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Is Charles’ climate fight over now he’s King? | CNN

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Is Charles’ climate fight over now he’s King? | CNN

A model of this story appeared within the October 7 version of CNN’s Royal Information, a weekly dispatch bringing you the within observe on Britain’s royal household. Enroll right here.


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We’re weeks away from the annual United Nations Local weather Change Convention – higher often known as COP27 – however there will likely be a definite lack of royal presence at this yr’s occasion.

We now perceive Britain’s new monarch will forgo the upcoming summit in Sharm El Sheikh, Egypt. Earlier this week, a number of British retailers reported that UK Prime Minister Liz Truss had suggested Charles III towards attending.

After performing some digging, CNN understands that the King’s attendance at COP27 had not been confirmed and, following consultations with the federal government, it was mutually determined that the local weather convention wasn’t the fitting event for Charles’ first abroad go to as sovereign. We’ve reached out to the palace for an official assertion and can let you recognize if we hear again.

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However, in a press release emailed to CNN, a COP27 spokesperson confirmed that the King had been “invited as a really particular visitor” and mentioned the COP president designate was “disillusioned” by the reviews of his absence. It additionally warned the UK towards dialing again its local weather objectives, because the Truss authorities evaluations a few of the extra bold elements of the UK’s Web Zero technique.

“The Egyptian presidency of the local weather convention acknowledges the longstanding and robust dedication of His Majesty to the local weather trigger, and believes that his presence would have been of nice added worth to the visibility of local weather motion at this important second. We hope that this doesn’t point out that the UK is backtracking from the worldwide local weather agenda after presiding over COP26,” the spokesperson mentioned. The spokesperson famous Truss was nonetheless invited in her capability as head of the UK authorities.

For its half, Downing Avenue referred CNN to latest feedback from the prime minister’s spokesman during which he declined to disclose particulars of the King and prime minister’s conversations “as a matter of longstanding coverage.” Nevertheless, the spokesman did add that “we have now a proud file relating to COP, we’re forging forward with our plans for NetZero – 40% of our energy now comes from clear power sources and we are going to proceed to ship on these guarantees.” Downing Avenue mentioned it should affirm Truss’ attendance nearer to the occasion.

Charles’ observe file as an avid local weather campaigner is well-known, having began talking on the topic within the late 60s. And at earlier local weather summits, he’s performed an lively function – showing in his factor whereas urgent for international motion.

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Final yr, whereas nonetheless Prince of Wales, he stepped in for the Queen in Glasgow who, as head of the host nation, was unable to host a reception for visiting delegates following a hospital keep. She did find yourself sending a video message, nevertheless it was Charles who opened the summit in November 2021, imploring international locations to work with industries to create options to local weather change.

“We all know it will take trillions, not billions, of {dollars},” he instructed delegates. Local weather change and lack of biodiversity pose an incredible menace and the world should go on a “war-like footing” to fight them, he added. Together with Camilla, William and Catherine, he then attended plenty of engagements on the UN local weather talks.

Charles additionally delivered the opening tackle again in 2015 for COP21 in Paris, the place he urged world leaders to “take these long-awaited steps in direction of rescuing our planet.”

It could have been assumed that Prince William, now within the function of Prince of Wales, might need headed to Egypt as a substitute, however Kensington Palace has additionally confirmed he gained’t attend this yr both.

Charles gave the keynote speech at the opening session of COP21 in 2015.

All this has left some to surprise if Charles should abandon his environmental platform now he’s the sovereign.

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“Custom would possibly counsel that he ought to stay mum on political issues, a brand new sovereign is effectively inside his royal prerogative to form the contours of his reign,” wrote Joseph Romm, a former Performing Assistant Secretary of Vitality for Vitality Effectivity and Renewable Vitality through the Clinton administration, in a latest op-ed for CNN.

“Charles can and will make local weather change a key focus of his reign, each in private and non-private. Certainly, it’s in all probability the one solution to preserve the monarchy related within the coming a long time the place local weather change turns into the world’s dominant challenge as its impacts are more and more widespread and catastrophic,” Romm added.

Whereas the King will possible be disillusioned to overlook COP27, many – together with former US Secretary of State and local weather envoy John Kerry – imagine he’ll preserve his mantle as a royal eco-warrior.

Kerry, who speaks repeatedly with Charles on local weather points, instructed CNN final month that the King was “deeply dedicated on these very important points.”

“He has all the time recognized that in some unspecified time in the future he would develop into King and he doesn’t need to not be capable to push what isn’t a political challenge. It’s not ideological, it’s science and it’s a actuality and it’s occurring all around the globe,” Kerry instructed CNN’s Christiane Amanpour.

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“Going ahead, His Majesty now’s completely seized by the sense of urgency and the sensation that no nation is but actually doing sufficient,” he pressed on, including that he really feels the King’s “voice can assist mobilize.”

The King and his son previously attended events during the UN climate summit last year in Glasgow.

Kerry additionally pointed to a few of Charles’ initiatives just like the Terra Carta initiative as having helped deliver the personal sector to the desk in recent times and having already made variations within the struggle to sort out local weather change.

And whereas the brand new monarch works out learn how to fuse his ardour for the pure world into his function as sovereign, his son William will proceed his work via his Earthshot initiative.

The environmental prize is because of head to Boston in early December for its second iteration. In 2020, William spoke of being impressed to begin the prize by his father and grandfather, Philip – an illustration of how continuity has been constructed into the royal roles through the years. It confirmed that when Charles turned King, William was all the time going to hold on that work – however very a lot in his personal method.

(With contributions from CNN’s Worldwide Local weather Editor Angela Dewan.)

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We need to know what you suppose: Ought to the brand new monarch preserve talking out on local weather points or ought to he depart it to different royals to tackle?

Drop us an e-mail together with your views to royalnews@cnn.com and we’ll have a look at that includes a number of in an upcoming ship.

Sophie makes royal historical past.

The Countess of Wessex made royal historical past this week, changing into the primary member of the Windsor clan to journey to the Democratic Republic of Congo. Sophie, who’s married to King Charles’ youngest brother Edward, visited the nation on Monday and Tuesday on the request of the UK International Workplace. Persevering with her years-long work supporting ladies in battle, Sophie’s go to centered on “addressing the devastating affect of sexual and gender based mostly violence in battle, whereas supporting and empowering survivors and tackling the stigma they face,” in keeping with Buckingham Palace. Following two days of engagements within the DRC, the countess flew to Rwanda, the place she met with authorities ministers about initiatives to empower ladies and women within the nation. She then headed to the Kigali Memorial, which commemorates these killed within the genocide in 1994. Earlier this yr, Charles and Camilla visited the memorial web site the place 1 / 4 of 1,000,000 individuals are interred.

The Countess of Wessex hugs Jeanne Mukunilwa, a survivor of conflict-related sexual violence at the City of Joy, in Bukavu, South Kivu Province, during a visit to the Democratic Republic of Congo this week.

Kate provides out cuddles.

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The Princess of Wales made a solo go to to a maternity unit on Wednesday, the place she discovered in regards to the holistic help the division affords ladies throughout and after their pregnancies. Throughout the go to, the princess was photographed cradling “candy” child Bianca, who was born six weeks untimely. In addition to touring the Royal Surrey County Hospital in Guildford, which isn’t removed from Windsor, and talking with midwives, Kate additionally frolicked with a few of the new mothers within the neonatal ward. Kate “was so heat and wonderful to talk to,” mentioned 27-year-old Jess Kemp, who gave start to her child son Hugo earlier this week, Britain’s PA Media information company reported. “What a beautiful solution to introduce the infant (to the world). It’s a beautiful factor to inform him when he grows up and to share with household as effectively,” Kemp added. A day later, the princess joined her husband, Prince William, for a day-long go to to Northern Eire.

The Princess of Wales spoke with mew mother Sylvia Novak (unseen), whilst holding Sylvia's new-born daughter Bianca, during a visit to the Royal Surrey County Hospital's maternity unit in Guildford, south west of London on October 5.

Princess Anne’s stateside shock.

Think about making your day by day commute to work on the Staten Island Ferry solely to randomly spot a Windsor out of the nook of your eye. Properly, that’s precisely what might have occurred Tuesday when Princess Anne popped up in New York for a fast go to. Being her standard low-key self, the sister of the brand new British monarch cracked on with a day of occasions whereas on the town, visiting the Nationwide Lighthouse Museum within the morning earlier than having fun with a trip again throughout the harbor to Manhattan on the well-known ferry boats. Within the afternoon, the Princess Royal attended a luncheon at Battery Park, in keeping with silive.com. Check out Anne on the ferry’s bridge here.

South African President Cyril Ramaphosa signs a book of condolence at Lancaster House on September 18, 2022 in London.

Charles III will welcome South Africa’s President Cyril Ramaphosa for a state go to subsequent month. With first girl Tshepo Motsepe accompanying him, Ramaphosa will go to Britain from November 22 to 24.

Though Ramaphosa was within the British capital final month for the Queen’s funeral, November’s state go to would be the first from a South African chief in additional than a decade – with the final being when Charles and Camilla hosted Jacob Zuma and his spouse in March 2010 on behalf of the Queen. Through the years, the King has visited South Africa a number of instances, beginning along with his first go to again in 1997 in addition to in 2011 and 2013.

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08 royal newsletter 1007

Chris Jackson/Getty Photographs

The palace launched a brand new royal household portrait that includes the King, Queen Consort and new Prince and Princess of Wales on Saturday. The 4 senior royals posed side-by-side for Getty photographer Chris Jackson the evening earlier than Queen Elizabeth’s funeral on September 19. That night they hosted a reception for lots of the world leaders and dignitaries who had flown to London to attend the funeral service.

Queen Margrethe II attends a state banquet in Bellevue Palace on November 10, 2021 in Berlin, Germany.

We just lately instructed you about how Denmark’s Queen Margrethe II was eradicating the royal titles from 4 of her grandchildren. Properly, there’s been an replace.

Margrethe II, who this yr celebrated her golden jubilee milestone, abruptly introduced final week that the kids of her youthful son, Prince Joachim, will stop holding royal titles from subsequent yr.

The transfer appeared to spark one thing of a disaster within the royal family, with the 82-year-old monarch this week apologizing for the “sturdy reactions to my choice.” But regardless of the concession, she remained resolute in her actions.

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“My choice has been a very long time coming. With my 50 years on the throne, it’s pure each to look again and to look forward. It’s my responsibility and my need as Queen to make sure that the monarchy all the time shapes itself in line with the instances. Generally, which means that troublesome choices have to be made, and it’ll all the time be troublesome to seek out the fitting second,” she added. Learn the total story.

“My spouse and I had been deeply saddened to listen to of the lack of life and accidents on the soccer match in Malang on 1 October. I supply my heartfelt condolences to you, the households affected and the folks of the Republic of Indonesia at this troublesome time.”

King Charles III

The King expressed his condolences following the horror at Indonesia’s Kanjuruhan Stadium final weekend, the place a crowd crush killed at the very least 131 folks.

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Starbucks pares hedging programme despite coffee market surge

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Starbucks pares hedging programme despite coffee market surge

Starbucks has slashed its use of hedges against coffee price shocks even as the price of beans has soared, raising concerns that it may be unusually exposed to market swings. 

The world’s largest café chain held less than $200mn worth of fixed-price contracts for so-called green, or unroasted, coffee at the end of its fiscal year in September, according to its newly filed annual report, down from $1bn as recently as 2019. 

The decline has occurred at a time when roasters confront supply deficits after persistently poor crops in major exporters such as Brazil. Benchmark coffee futures rose above $3 a pound in New York on Friday to a 13-year high, following a more than 70 per cent gain in the past 12 months. 

Starbucks buys 3 per cent of the world’s coffee to supply its 40,000 cafés and retail businesses. A team based in Lausanne, Switzerland manages purchasing high-quality arabica beans under a subsidiary named the Starbucks Coffee Trading Company. The decline in the value of its fixed-price contracts has attracted attention on Wall Street. 

“They are substantially less hedged than they used to be. It makes the next 12 months of coffee prices more important than they’ve ever been,” said Gregory Francfort, a restaurant analyst at Guggenheim Securities.   

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New Starbucks chief executive Brian Niccol is in the the early stages of a plan to revive flagging sales at cafés. One of his goals is to restore its appeal as a community coffee house. “At Starbucks, coffee comes first,” he said in video remarks last month. 

The company is not alone among roasters in letting price-cover slip during an explosive market rally. Data from the US commodity futures regulator shows commercial traders have sharply reduced their contracts to buy arabica.

A coffee trader familiar with Starbucks’ operations says the majority of its purchases are made with so-called “price-to-be-fixed” contracts, which establish a quantity, delivery month and the amount of price premium to New York’s futures market. The final purchase price is agreed later.

“When a market rallies significantly and quickly, as coffee has done, the roasting community in general tends to let coverage decline,” the trader said.

Starbucks’ 56 “tier one” suppliers range from global commodities trading houses such as Louis Dreyfus and Olam to farmer co-operatives. The company in 2021 said it bought 800mn lbs of coffee annually — an amount that would cost $2.4bn at current benchmark prices. 

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Starbucks had $1.1bn in green coffee purchase obligations on its books as of September, according to its annual report.

The company buys green coffee using two types of contracts: fixed-price and price-to-be-fixed, according to its annual report. For the latter, the company also uses derivatives contracts to insure against market gyrations. 

Line chart of $mn showing Starbucks cuts value of 'fixed-price' coffee purchases

“Like others, right now we’re remaining agile in a very dynamic market,” Starbucks said in response to questions. “An example of that agility is that our current priced coverage is slightly lower than our typical range of 9-18 months.”  

Starbucks executives rarely discuss coffee hedging with Wall Street, but in 2021 — another period of furious price rises — then-CEO Kevin Johnson told analysts the company purchased 12 to 18 months in advance, and at the time had locked in prices for the next 14 months.

“We may be the only large buyer of green coffee that uses this approach, and that will serve us well as it gives us a significant advantage relative to our competitors who, if they don’t buy this far in advance, will certainly not have that cost structure that we put in place,” he said.

The value of Starbucks’ price-to-be-fixed contracts has fluctuated, ending the fiscal year in September at $929mn, according to the annual report.

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That sum was more than a year ago, but well below levels of 2021 and 2022. Coffee derivatives contracts held by Starbucks were worth $154mn, the lowest September value since 2020. 

Starbucks’ coffee trading operation is headed by Andres Berron, an eight-year employee of the company, according to his LinkedIn page. The company declined to make him available for comment. 

Starbucks said its approach to purchasing coffee hasn’t changed. The company pointed out that its current stocks of physical coffee are a cushion against volatility in the spot market.

Inventories of unroasted and roasted beans combined were worth about $920mn as of September, according to the annual report, the lowest fiscal year-end figure since 2021. 

“We keep a healthy and ample green coffee inventory that outpaces other roasters,” Starbucks said. 

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Global coffee production has been rocked by poor weather. The US Department of Agriculture last week cut its production forecast for Brazil, the top supplier, citing irregular rainfall and high temperatures that could depress its next harvest. 

“The global coffee market just can’t seem to catch a break,” said Kona Haque, a commodities analyst at ED&F Man in London. “Just when you think maybe this year we’re going to get a big crop and finally get back to a surplus and rebuild our stocks, you get another adverse-weather event in either Brazil or Vietnam, and things get tight again.” 

“Because markets now are tighter than usual, there is upward pressure on prices,” she added. “In a rising price environment, clearly you want to be hedged. You do not want to be exposed to rising spot prices.” 

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With talks teetering, climate negotiators struck a controversial $300 billion deal

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With talks teetering, climate negotiators struck a controversial 0 billion deal

Activists demanding that rich countries pay up for climate finance for developing countries at the COP29 climate conference in Baku, Azerbaijan.

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Negotiators at a global climate conference in Baku, Azerbaijan, struck a last-minute deal for wealthy countries to help their poorer neighbors deal with global warming, saving the annual meeting as it verged on collapse.

From the outset, the focus of the United Nations’ COP29 climate conference was raising money to help developing nations cut their climate pollution and prepare for threats they face from extreme weather. Developing nations have contributed far less of the pollution heating the planet, but suffer the harms of extreme weather disproportionately.

Those countries had pushed for climate funding of $1.3 trillion a year. But the final agreement set a goal of $300 billion annually. Some representatives of developing countries were furious at the outcome, saying $300 billion a year from industrialized countries is far short of what vulnerable nations need.

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“It’s a paltry sum,” said Chandni Raina, a member of India’s delegation, during the conference’s closing meeting. “It is not something that will enable conducive climate action that is necessary for the survival of our country and for the growth of our people, their livelihoods.”

Announced more than a day after the talks were scheduled to end, the funding deal was brokered after world leaders and climate activists leveled sharp criticism at industrialized nations, as well as the Azerbaijani officials who hosted the two-week meeting.

Raina criticized the meeting’s president, Mukhtar Babayev, for passing the financing agreement before he gave countries a chance to comment.

“Trust is the basis for all action, and this incident is indicative of a lack of trust, a lack of collaboration on an issue which is a global challenge, which is faced by all of us, and most of all by the developing countries that are not responsible for it,” Raina said. “But, we’ve seen what you have done.”

Mohamed Adow, director of the Kenyan think tank Power Shift Africa, said at a press conference on Friday that this was “the worst COP in recent memory.”

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Taking aim at wealthy countries that built their economies over centuries using fossil fuels, Adow added, “You can’t have a negotiation if only one side is actually engaging in good faith and putting forward proposals that [respond] to the needs on the ground.”

The climate talks were held at the end of what will almost certainly be the hottest year on record. Global temperatures are rising mainly because of heat-trapping pollution that’s created when people burn fossil fuels like coal and oil. Global emissions rose to a new record in 2023, and the world is nowhere close to meeting a goal countries set to limit warming in order to reduce the risks of worsening disasters from extreme weather like floods and heat waves.

The leaders of some developing countries briefly walked out of negotiations on Saturday. Cedric Schuster, Samoa’s minister of natural resources and environment, said in a statement that developing countries were treated with “contempt.”

“What is happening here is highlighting what a different boat our vulnerable countries are in, compared to the developed countries,” said Schuster, who chairs the Alliance of Small Island States, which represents dozens of low-lying nations from the Caribbean to the South China Sea. “After this COP29 ends, we cannot just sail off into the sunset. We are literally sinking.”

President Biden said in a statement that the COP29 climate-funding agreement was “ambitious.” “It will help mobilize the level of finance – from all sources – that developing countries need to accelerate the transition to clean, sustainable economies, while opening up new markets for American-made electric vehicles, batteries, and other products,” Biden said.

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However, the recent U.S. presidential election hung over the conference. Voters’ decision to send Donald Trump back to the White House raises questions about whether the country will continue working on global climate initiatives. Trump, who has promised to pursue policies in his second term to support the country’s oil and gas industry, is expected to again pull the U.S. out of the landmark 2015 Paris climate agreement.

Here’s what else did — and didn’t — happen at COP29.

A sign displays an unofficial temperature as jets taxi at Sky Harbor International Airport at dusk, July 12, 2023, in Phoenix.

A sign displays an unofficial temperature as jets taxi at Sky Harbor International Airport at dusk, July 12, 2023, in Phoenix.

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Deal calls for at least $300 billion annually for developing countries

Negotiators agreed that wealthy countries will provide developing nations at least $300 billion a year in climate funding by 2035.

That’s triple what poorer nations were promised under a previous commitment, but it’s a fraction of what researchers say is required. A report released during the conference shows developing nations other than China — which boasts the world’s second-largest economy and is the second-biggest contributor of climate pollution historically — will need about $1.3 trillion in climate funding annually.

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The final COP29 agreement includes a vague goal for “all actors to work together” to provide $1.3 trillion to developing nations by 2035.

“The poorest and most vulnerable nations are rightfully disappointed that wealthier countries didn’t put more money on the table when billions of people’s lives are at stake,” Ani Dasgupta, chief executive of the World Resources Institute, said in a statement.

The debate over climate funding traces back more than a decade. In 2009, industrialized countries set a goal to give developing nations $100 billion a year by 2020 to help them deal with climate change. In 2015, countries extended the pledge to 2025. They also said they’d set a new goal that reflects the “needs and priorities of developing countries” before the old one expires. That’s what negotiators fought over in Azerbaijan.

Heading into this year’s meeting, it was clear developing countries are in a bind. They need help, but whatever money wealthy nations pledged was certain to be just a portion of what’s required to cope with climate change. And industrialized countries were slow to deliver on their original commitment, so poorer nations are relying on unreliable neighbors.

The dollar figure wasn’t the only point of contention. Leaders of vulnerable states say they need a lot more assistance to come in the form of grants — not loans — in order to avoid increasing the debt burden on poorer countries.

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The final agreement doesn’t guarantee poorer countries the grant funding they say they need. The document says the $300 billion annually from wealthy countries can come from “a wide variety of sources,” including private investors.

Developing countries have also pushed for compensation for the damages from climate-related disasters, like more intense storms and droughts. Last year, richer countries agreed to create a “loss and damage” fund to fill that need, housed at the World Bank. So far, more than $720 million has been pledged and at COP29, countries officially opened the fund for donations.

A small number of countries have received payments already, part of pilot projects organized by Scotland.

A call to phase out fossil fuels faces pushback

At last year’s meeting in Dubai, negotiators for the first time agreed countries should transition away from fossil fuels. This time, calls to reiterate that agreement faced pushback.

The world’s largest oil exporter, Saudi Arabia, was identified as a primary force behind that effort.

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“Their blatant obstruction has ensured there’s no clear commitment to phase out fossil fuels — an outrageous betrayal of humanity and the urgent fight against climate catastrophe,” Maria Ron Balsera, executive director of the Center for Economic and Social Rights said in a statement.

The host country for COP29 also came in for criticism.

Oil and gas dominate Azerbaijan’s economy, representing 90% of the country’s exports and finance about 60% of the government’s budget. An official with the COP29 host country, Azerbaijan, was recorded by the human rights group Global Witness arranging a meeting to discuss potential fossil fuel deals.

At COP29, Azerbaijan’s president, Ilham Aliyev, said natural resources like oil and gas are a “gift of the god.”

“And countries should not be blamed for having them, and should not be blamed for bringing these resources to the market,” Aliyev said. “Because the market needs them. The people need them.”

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A portion of Amazon rainforest deforested by illegal fire in Brazil this August.

A portion of Amazon rainforest deforested by illegal fire in Brazil this August. 

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Some countries unveiled new climate targets

As part of the Paris climate treaty, countries have to announce plans to make deeper cuts to their own climate pollution by 2035. The hope is that all the pollution cuts combined will limit the world’s warming to 1.5 degrees Celsius, 2.7 degrees Fahrenheit, compared to temperatures from the 1800s.

Targets are due in February, and with a looming deadline, some countries announced their targets in Baku.

United Kingdom Prime Minister Keir Starmer made a speech early in the summit, announcing the country would slash emissions 81% by 2035, compared with 1990 levels. “It’s very important to establish ambition, and that’s exactly what the UK [target] did,” says Ani Dasgupta, president of the World Resources Institute.

Brazil, whose climate emissions come mostly from rampant deforestation in the Amazon, also announced its target. It plans to cut climate pollution by as much as two-thirds by 2035 compared to 2005 levels. While Brazil says its cuts align with the 1.5 degree goal, climate policy experts say that’s still unclear.

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Deal over carbon markets draws criticism

One of the goals at this year’s summit was to finally agree on rules for a global system for trading carbon offsets, or carbon credits.

Carbon credits are basically a promise. A promise that when a country or business purchases a credit, that money is going toward an action that reduces or removes planet-heating pollution.

At the summit, negotiators concluded negotiations over parts of “Article 6”, a part of the Paris Agreement that allows countries to cooperate to reach their climate targets, including by trading carbon credits.

A leading company in the carbon credit sector, Verra, called it “a historic step.”

But many carbon market researchers voiced concerns. Research has repeatedly shown that many carbon credits don’t reduce emissions. In fact, a new research paper looking at thousands of carbon credit projects found less than 16% of the carbon credits are actually reducing climate pollution.

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The new rules “could end up undermining our efforts to rein in emissions rather than advancing them,” said the nonprofit Carbon Market Watch in a statement.

Funding for health initiatives falls short

At last year’s COP28 in Dubai, advocacy organizations made the case that future climate negotiations should include a new priority: protecting human health. Climate change, they said, is now one of the biggest threats to health worldwide. It is amplifying health risks from extreme weather, such as dangerous heat waves like those in Europe or India that killed tens of thousands of people in recent years. It also spurs the spread of infectious disease, worsens air quality, and stresses people’s mental well-being.

“Climate change itself is an overarching issue that influences health,” said Florence Ngala, chief environmental officer at the Ministry of Health in Zambia, at the meeting this year.

In her country this year, a climate-worsened flood lasted for two months and led to thousands of cases of cholera and 800 deaths. But the impacts didn’t end when the flood receded: the disruption to health services lasted for months, and some health facilities postponed upgrades that might have helped them become more resilient.

Advocates hoped at COP29, developed countries would commit to increasing the amount of money flowing to threatened countries like Zambia. Those would be critical to shoring up health services that protect people from climate-worsened risks and to developing climate-resilient health facilities. But the final commitments fall short of what many developing countries were demanding—and what organizations like the World Bank have suggested is needed.

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“It is deeply discouraging to yet again see governments of wealthy countries that claim to be leaders kick the can on climate down the road, at the cost of the lives and health of their populations, and of everyone around the world” says Jeni Miller, executive director of the Global Climate and Health Alliance.

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Kick-start for carbon credit market after loose rules agreed at COP29

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Kick-start for carbon credit market after loose rules agreed at COP29

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Countries at the United Nations climate summit in Baku struck a final deal on the broad rules to launch carbon trading markets, almost a decade after being first proposed.

The agreement passed at the UN COP29 climate summit late on Saturday night will allow countries and companies to trade credits for cuts in carbon emissions to offset their carbon footprints.

The carbon trading mechanism had first been formally sketched out in the 2015 Paris agreement on limiting climate change, as a way for polluters to pay for other countries to cut emissions on their behalf. 

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But it has proved controversial over fears it will not result in the promised removal of carbon from the atmosphere.

The head of delegation for a group of heavily forested countries, including Bolivia and the Democratic Republic of Congo, Kevin Conrad, said “properly regulated, markets can become a force for good, and start to reverse the market failures causing environmental and atmospheric destruction”.

The birth of the market prompted cheers and standing ovations by UN negotiators in the first session of the final plenary, in a rare breakthrough at the summit that was otherwise on the verge of collapse.

States and companies will be able to trade credits meant to represent one tonne of carbon dioxide saved or removed from the atmosphere, under mechanisms subject to loose oversight by the UN and designed to avoid double-counting of emissions cuts.

The final agreement overcame a quarrel about a proposed UN registry for tracking the flow in emission claims, with the US forced to compromise on how much power this registry should have.

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Host country Azerbaijan made the issue of carbon emissions trading a priority, pushing successfully on the first day of the two-week summit for countries to adopt an initial element of the global market.

In subsequent negotiations to settle the rules, it drove the participants to overcome their disagreements. This included on a series of trade-offs between requiring more rigorous accounting and easing the pathway to get the market off the ground, with a rule book on principles for how credits should be traded, counted and checked.

Countries and companies took advantage of the prospective launch of the market by signing preliminary deals in recent weeks. Commodity trader Trafigura announced a “pilot” carbon project to help Mozambique develop carbon restoration projects.

Some experts warned however that the new market could face many of the same greenwashing allegations that have plagued the existing unregulated trade in credits between companies.

These have caused the voluntary credit markets to shrink from $1.4bn in 2022 to $1.1bn last year, based on MSCI Carbon Markets estimates.

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“The deal leaves a lot of trust in the hands of [countries] which is a problem because the rules themselves are not yet net zero [emissions] aligned,” said Injy Johnstone, a research fellow at the University of Oxford.

The concerns were echoed by Isa Mulder of Carbon Market Watch, who said the “dangerously loose and opaque” deal enshrined a “free-for-all” approach.

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UN carbon market experts will continue to discuss which types of credits countries can buy. For example, some countries would like to sell credits linked to hypothetical CO₂ that is not emitted, for example from protecting a forest, closing a coal mine or cooking on a stove using gas rather than wood as fuel, to cancel out real greenhouse gas emissions.

These types of credits could ultimately lead to more CO₂ entering the atmosphere, some experts say, in part because it could lessen the incentive for polluters to make plans to cut their underlying emissions.

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One negotiator described discussions as “very, very tough” before ultimately settling on a “buyer beware” approach which will rely mainly on transparency to shame countries which fall into bad practice.

The money raised by carbon deals could help contribute to the climate finance needs of poorer countries, which economists estimated at $1.3tn a year.

But others expressed caution about the solutions provided by carbon emissions trading. Brazil’s environment minister Marina Silva said it was not a “panacea” for boosting finance to developing countries.

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