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U.S. to reveal scientific milestone on fusion energy

WASHINGTON, Dec 12 (Reuters) – The U.S. Department of Energy on Tuesday will announce that scientists at a national lab have made a breakthrough on fusion, the process that powers the sun and stars that one day could provide a cheap source of electricity, three sources with knowledge of the matter said.

The scientists at Lawrence Livermore National Laboratory in California have achieved a net energy gain for the first time, in a fusion experiment using lasers, one of the people said.

While the results are a milestone in a scientific quest that has been developing since at least the 1930s, the ratio of energy going into the reaction at Livermore to getting energy out of it needs to be about 100 times bigger to create a process producing commercial amounts of electricity, one of the sources said.

The FT first reported the experiment.

Fusion works when nuclei of two atoms are subjected to extreme heat of 100 million degrees Celsius (180 million Fahrenheit) or higher leading them to fuse into a new larger atom, giving off enormous amounts of energy.

But the process consumes vast amounts of energy and the trick has been to make the process self-sustaining and get more energy out than goes in and to do so continuously instead of for brief moments.

If fusion is commercialized, which backers say could happen in a decade or more, it would have additional benefits including the generation of virtually carbon-free electricity which could help in the fight against climate change without the amounts of radioactive nuclear waste produced by today’s fission reactors.

Running an electric power plant off fusion presents tough hurdles however, such as how to contain the heat economically and to keep lasers firing consistently. Other methods of fusion use magnets instead of lasers.

Energy Secretary Jennifer Granholm is slated to hold a media briefing on Tuesday at 10:00 a.m. EST (1500 GMT) on a “major scientific breakthrough.”

The department has no information ahead of the briefing, a spokesperson said.

Lawrence Livermore focuses mainly on national security issues related to nuclear weapons and the fusion experiment could lead to testing safer testing of the nation’s arsenal of such bombs.

But advances at the labs could also help efforts at companies that hope to develop power plants fired by fusion including Commonwealth Fusion Systems, Focused Energy and General Fusion.

Investors including Bill Gates, Jeff Bezos and John Doerr have poured money into companies building fusion. Private industry secured more than $2.8 billion last year, according to the Fusion Industry Association for a total of about $5 billion in recent years.

Reporting by Timothy Gardner; Editing by Philippa Fletcher, Marguerita Choy and Richard Chang

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Canada launches new Indo-Pacific strategy, focus on ‘disruptive’ China

OTTAWA, Nov 27 (Reuters) – Canada launched its long-awaited Indo-Pacific strategy on Sunday, vowing more resources to deal with a “disruptive” China while working with the world’s second-biggest economy on climate change and trade issues.

The 26-page document outlined C$2.3 billion ($1.7 billion) spending, including to boost Canada’s military presence and cyber security in the region and tighten foreign investment rules to protect intellectual property and prevent Chinese state-owned enterprises from snapping up critical mineral supplies.

The blueprint is to deepen ties with a fast-growing region of 40 countries accounting for almost C$50 trillion in economic activity. But the focus is on China, which is mentioned more than 50 times, at a moment when bilateral ties are frosty.

“China is an increasingly disruptive global power,” said the strategy. “China is looking to shape the international order into a more permissive environment for interests and values that increasingly depart from ours.”

Prime Minister Justin Trudeau’s Liberal government wants to diversify trade and economic ties that are overwhelmingly reliant on the United States. Official data for September show bilateral trade with China accounted for under 7% of the total, compared to 68% for the United States.

The strategy highlighted Beijing’s “foreign interference and increasingly coercive treatment of other countries.

“Our approach … is shaped by a realistic and clear-eyed assessment of today’s China. In areas of profound disagreement, we will challenge China,” it said.

Tensions soared in late 2018 after Canadian police detained a Huawei Technologies executive and Beijing subsequently arrested two Canadians on spying charges. All three were released last year, but relations remain sour.

Earlier this month Canada ordered three Chinese companies to divest their investments in Canadian critical minerals, citing national security.

The document, in a section mentioning China, said Ottawa would review and update legislation enabling it to act “decisively when investments from state-owned enterprises and other foreign entities threaten our national security, including our critical minerals supply chains.”

The document recognized the significant opportunities for Canadian exporters and said co-operation with Beijing was necessary to address some of the “world’s existential pressures,” including climate change, global health and nuclear proliferation.

Goldy Hyder, CEO of the Business Council of Canada, said it is important that the government converts “aspirations to actions and actions into accomplishments.”

The document said Canada would boost its naval presence in the region and “increase our military engagement and intelligence capacity as a means of mitigating coercive behavior and threats to regional security.”

Canada belongs to the Group of Seven major industrialized nations, which wants significant measures in response to North Korean missile launches.

The document said Ottawa was engaging in the region with partners such as the United States and the European Union.

Canada needed to keep talking to nations it had fundamental disagreements with, it said, but did not name them.

($1 = 1.3377 Canadian dollars)

(This story has been corrected to fix the amount to C$2.3 billion from C$2.6 billion in the second paragraph.)

Reporting by David Ljunggren; Editing by Denny Thomas, Leslie Adler and Daniel Wallis

Our Standards: The Thomson Reuters Trust Principles.

David Ljunggren

Thomson Reuters

Covers Canadian political, economic and general news as well as breaking news across North America, previously based in London and Moscow and a winner of Reuters’ Treasury scoop of the year.

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COP27 delivers climate fund breakthrough at cost of progress on emissions

  • COP27 climate summit ends after marathon weekend negotiations
  • Final deal delivers on creating historic climate finance fund
  • Negotiators say some blocked tighter emissions targets

SHARM EL-SHEIKH, Egypt, Nov 20 (Reuters) – Countries closed this year’s U.N. climate summit on Sunday with a hard-fought deal to create a fund to help poor countries being battered by climate disasters, even as many lamented its lack of ambition in tackling the emissions causing them.

The deal was widely lauded as a triumph for responding to the devastating impact that global warming is already having on vulnerable countries. But many countries said they felt pressured to give up on tougher commitments for limiting global warming to 1.5 degrees Celsius in order for the landmark deal on the loss and damage fund to go through.

Delegates – worn out after intense, overnight negotiations – made no objections as Egypt’s COP27 President Sameh Shoukry rattled through the final agenda items and gavelled the deal through.

Despite having no agreement for a stronger commitment to the 1.5 C goal set in the 2015 Paris Agreement, “we went with what the agreement was here because we want to stand with the most vulnerable,” Germany’s climate secretary Jennifer Morgan, visibly shaken, told Reuters.

When asked by Reuters whether the goal of stronger climate-fighting ambition had been compromised for the deal, Mexico’s chief climate negotiator Camila Zepeda summed up the mood among exhausted negotiators.

“Probably. You take a win when you can.”

LOSS AND DAMAGE

The deal for a loss and damage fund marked a diplomatic coup for small islands and other vulnerable nations in winning over the 27-nation European Union and the United States, which had long resisted the idea for fear that such a fund could open them to legal liability for historic emissions.

Those concerns were assuaged with language in the agreement calling for the funds to come from a variety of existing sources, including financial institutions, rather than relying on rich nations to pay in.

The climate envoy from the Marshall Islands said she was “worn out” but happy with the fund’s approval. “So many people all this week told us we wouldn’t get it,” Kathy Jetnil-Kijiner said. “So glad they were wrong.”

But it likely will be several years before the fund exists, with the agreement setting out only a roadmap for resolving lingering questions including who would oversee the fun, how the money would be dispersed – and to whom.

U.S. special climate envoy John Kerry, who was not at the weekend negotiations in person after testing positive for COVID-19, on Sunday welcomed the deal to “establish arrangements to respond to the devastating impact of climate change on vulnerable communities around the world.”

In a statement, he said he would continue to press major emitters like China to “significantly enhance their ambition” in keeping the 1.5 C goal alive.

FOSSIL FUEL FIZZLE

The price paid for a deal on the loss and damage fund was most evident in the language around emission reductions and reducing the use of polluting fossil fuels – known in the parlance of U.N. climate negotiations as “mitigation.”

Last year’s COP26 summit in Glasgow, Scotland, had focused on a theme of keeping the 1.5C goal alive – as scientists warn that warming beyond that threshold would see climate change spiral to extremes.

Countries were asked then to update their national climate targets before this year’s Egypt summit. Only a fraction of the nearly 200 parties did so.

While praising the loss and damage deal, many countries decried COP27’s failure to push mitigation further and said some countries were trying to roll back commitments made in the Glasgow Climate Pact.

“We had to fight relentlessly to hold the line of Glasgow,” a visibly frustrated Alok Sharma, architect of the Glasgow deal, told the summit.

He listed off a number of ambition-boosting measures that were stymied in the negotiations for the final COP27 deal in Egypt: “Emissions peaking before 2025 as the science tells us is necessary? Not in this text. Clear follow-through on the phase down of coal? Not in this text. A clear commitment to phase out all fossil fuels? Not in this text.”

On fossil fuels, the COP27 deal text largely repeats wording from Glasgow, calling up parties to accelerate “efforts towards the phasedown of unabated coal power and phase-out of inefficient fossil fuel subsidies.”

Efforts to include a commitment to phase out, or at least phase down, all fossil fuels were thwarted.

A separate “mitigation work programme” agreement, also approved on Sunday, contained several clauses that some parties, including the European Union, felt weakened commitment to ever more ambitious emissions-cutting targets.

Critics pointed to a section which they said undermined the Glasgow commitment to regularly renew emissions targets – with language saying the work programme would “not impose new targets or goals”. Another section of the COP27 deal dropped the idea of annual target renewal in favour of returning to a longer five-year cycle set out in the Paris pact.

“It is more than frustrating to see overdue steps on mitigation and the phase-out of fossil energies being stonewalled by a number of large emitters and oil producers,” German Foreign Minister Annalena Baerbock said.

The deal also included a reference to “low-emissions energy,” raising concern among some that it opened the door to the growing use of natural gas – a fossil fuel that leads to both carbon dioxide and methane emissions.

“It does not break with Glasgow completely, but it doesn’t raise ambition at all,” Norway’s Climate Minister Espen Barth Eide told reporters.

The climate minister of the Maldives, which faces future inundation from climate-driven sea level rise, lamented the lack of ambition on curbing emissions.

“I recognise the progress we made in COP27” with the loss and damage fund, Aminath Shauna told the plenary. But “we have failed on mitigation … We have to ensure that we increase ambition to peak emissions by 2025. We have to phase out fossil fuel.”

Reporting by Valerie Volcovici, Dominic Evans and William James; Writing by Katy Daigle

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At COP27, climate change framed as battle for survival

  • China, United States have leading role
  • Guterres seeks coal phase-out by 2040
  • UAE, host of 2023 talks, says will keep producing fossil fuel

SHARM EL-SHEIKH, Egypt, Nov 7 (Reuters) – World leaders and diplomats framed the fight against global warming as a battle for human survival during opening speeches at the COP27 climate summit in Egypt on Monday, with the head of the United Nations declaring a lack of progress so far had the world speeding down a “highway to hell”.

The stark messages, echoed by the heads of African, European and Middle Eastern nations alike, set an urgent tone as governments began two weeks of talks in the seaside resort town of Sharm el-Sheikh to figure out how to avert the worst of climate change.

“Humanity has a choice: cooperate or perish,” U.N. Secretary General Antonio Guterres told delegates, urging them to accelerate the transition from fossil fuels and speed funding to poorer countries struggling under climate impacts that have already occurred.

Despite decades of climate talks so far, countries have failed to reduce global greenhouse gas emissions, and their pledges to do so in the future are insufficient to keep the climate from warming to a level scientists say will be catastrophic.

Land war in Europe, deteriorating diplomatic ties between top emitters the United States and China, rampant inflation, and tight energy supplies threaten to distract countries further away from combating climate change, Guterres said, threatening to derail the transition to clean energy.

“Greenhouse gas emissions keep growing. Global temperatures keep rising. And our planet is fast approaching tipping points that will make climate chaos irreversible,” he said. “We are on a highway to climate hell with our foot on the accelerator.”

Former U.S. Vice President Al Gore, also speaking at the event, said global leaders have a credibility problem when it comes to climate change and criticized developed nations’ ongoing pursuit of gas resources in Africa, which he described as “fossil fuel colonialism.”

“We have a credibility problem all of us: We’re talking and we’re starting to act, but we’re not doing enough,” Gore said.

French President Emmanuel Macron said that, while the world was distracted by a confluence of global crises, it was important not to sacrifice national commitments to fight climate change.

“We will not sacrifice our commitments to the climate due to the Russian threat in terms of energy,” Macron said, “so all countries must continue to uphold all their commitments.”

British Prime Minister Rishi Sunak said the war was a reason to accelerate efforts to wean the world off fossil fuels.

“Climate security goes hand in hand with energy security, Putin’s abhorrent war in Ukraine, and rising energy prices across the world are not a reason to go slow on climate change. They are a reason to act faster,” he said.

UAE TO CARRY ON PUMPING OIL, GAS

While leaders tended to agree on the risks of global warming, their speeches revealed huge rifts, including over whether fossil fuels could play a role in a climate-friendly future, and who should pay for climate damage that has already occurred.

Immediately after Guterres’ speech urging an end to the fossil fuel era, United Arab Emirates President Sheikh Mohammed bin Zayed al-Nahyan took the stage and said his country, a member of the Organization of the Petroleum Exporting Countries, would continue to produce them for as long as there is a need.

“The UAE is considered a responsible supplier of energy, and it will continue playing this role as long as the world is in need of oil and gas,” he said.

The UAE will host next year’s U.N. conference, which will attempt to finalise agreements made last year in Britain and at this year’s Egyptian talks.

Many countries with rich resources of oil, gas and coal have criticized the push for a rapid transition away from fossil fuels, arguing it is economically reckless and unfair to poorer and less developed nations keen for economic growth.

“We are for a green transition that is equitable and just, instead of decisions that jeopardise our development,” said Macky Sall, president of Senegal and chair of the African Union.

Poorer countries that bear little responsibility for historic carbon emissions have also been arguing they should be compensated by rich nations for losses from climate-fueled disasters including floods, storms and wildfires.

Signatories to the 2015 Paris Agreement had pledged to achieve a long-term goal of keeping global temperatures from rising by more than 1.5°C above pre-industrial levels, the threshold beyond which scientists say climate change risks spinning out of control.

Guterres said that goal was possible only if the world can achieve net-zero emissions by 2050. He asked countries to agree to phase out the use of coal, one of the most carbon-intense fuels, by 2040 globally, with members of the Organisation for Economic Cooperation and Development hitting that mark by 2030.

The head of the International Monetary Fund told Reuters on the sidelines of the conference that climate targets depend on achieving a global carbon price of at least $75 a ton by the end of the decade, and that the pace of change in the real economy was still “way too slow”.

The World Trade Organization, meanwhile, said in a report published on Monday that it should tackle trade barriers for low carbon industries to address the role of global trade in driving climate change.

Read more:

EXPLAINER-A field guide to climate jargon

FACTBOX-COP27: Major players at the U.N. climate talks in Egypt

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Reporting by William James, Valerie Volcovici and Simon Jessop; Editing by Richard Valdmanis, Katy Daigle, Barbara Lewis, Frank Jack Daniel, Deepa Babington and Lisa Shumaker

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Climate activists block private jet take-offs at Schiphol Airport

AMSTERDAM, Nov 5 (Reuters) – More than 100 environmental activists wearing white suits stormed into an area where private jets are kept at Amsterdam’s Schiphol Airport on Saturday and stopped several aircraft from departing by sitting in front of their wheels.

The protest was part of a day of demonstrations in and around the airport organised by environmental groups Greenpeace and Extinction Rebellion to protest over greenhouse gas emissions and other pollution caused by the airport and aviation industry.

No delays to commercial flights were reported as of the early afternoon.

“We want fewer flights, more trains and a ban on unnecessary short-haul flights and private jets,” said Greenpeace Netherlands campaign leader Dewi Zloch.

The environmental group says Schiphol is the largest source of carbon dioxide emissions in the Netherlands, emitting 12 billion kilograms annually.

Hundreds of other demonstrators in and around the airport’s main hall carried signs saying “Restrict Aviation” and “More Trains”.

Responding to the protest, Schiphol said it aims to become an emissions-free airport by 2030 and supports targets for the aviation industry to reach net zero emissions by 2050.

Military police tasked with airport security said in a statement they had “made a number of detentions of persons who were on airport property without being allowed”.

The Dutch government announced plans in June for a cap on annual passengers at the airport at 440,000, around 11% below 2019 levels, citing air pollution and climate concerns.

Transportation Minister Mark Harbers told parliament last month his office could not control growing private jet traffic, and the government is considering whether to include the issue in its climate policy.

Reporting by Toby Sterling
Editing by Toby Chopra and Helen Popper

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Lula wins Brazil election in political resurrection for leftist

SAO PAULO/BRASILIA, Oct 31 (Reuters) – Brazilian leftist leader Luiz Inacio Lula da Silva narrowly defeated President Jair Bolsonaro in a runoff election, but the far right incumbent had not conceded defeat by Monday morning, raising concerns he might contest the result.

Tens of thousands of jubilant supporters took to the streets of Sao Paulo to celebrate a stunning comeback for the 77-year-old former metalworker who, following his previous two-term 2003-2010 presidency, served prison time for corruption convictions that were later annulled.

Bolsonaro is the first Brazilian incumbent to lose a presidential election and Lula has vowed to overturn his legacy, including pro-gun policies and weak protection of the Amazon rainforest.

Pitching the contest as a battle for democracy after his rival made baseless claims the electoral system was open to fraud, Lula called the election a sign Brazilians “want more and not less democracy,” in a victory speech that celebrated what he called his “resurrection.” He promised to unite a deeply divided country.

“I will govern for 215 million Brazilians, and not just for those who voted for me,” Lula said at his campaign headquarters. “There are not two Brazils. We are one country, one people, one great nation.”

The Supreme Electoral Court (TSE) declared Lula won 50.9% of votes, against 49.1% for Bolsonaro. Lula’s inauguration is scheduled for Jan. 1.

Brazil Election Lula wins Brazilian election

The result in Latin America’s largest nation means the left will govern all the region’s major economies after a string of electoral successes from Mexico to Argentina in recent years.

A source in the Bolsonaro campaign told Reuters the president would not make public remarks until Monday. The Bolsonaro campaign did not respond to a request for comment.

“So far, Bolsonaro has not called me to recognize my victory, and I don’t know if he will call or if he will recognize my victory,” Lula told supporters on Sao Paulo’s Paulista Avenue.

In contrast to Bolsonaro’s silence, congratulations for Lula poured in from foreign leaders, including U.S. President Joe Biden, Russian President Vladimir Putin, German Chancellor Olaf Scholz and French President Emmanuel Macron.

Biden congratulated Lula for winning “free, fair and credible elections,” joining the chorus of compliments from European and Latin American leaders.

Markets braced for a volatile week ahead, with Brazil’s real currency and international listings of Brazilian stocks falling as investors gauged speculation about Lula’s cabinet and the risk of Bolsonaro questioning results.

One close Bolsonaro ally, lawmaker Carla Zambelli, in an apparent nod to the results, wrote on Twitter, “I PROMISE you, I will be the greatest opposition that Lula has ever imagined.”

The vote was a rebuke for the fiery far-right populism of Bolsonaro, who emerged from the back benches of Congress to forge a conservative coalition but lost support as Brazil ran up one of the worst death tolls of the coronavirus pandemic.

International election observers said Sunday’s election was conducted efficiently. One observer told Reuters that military auditors did not find any flaws in integrity tests they did of the voting system.

Truck drivers believed to be Bolsonaro supporters on Sunday blocked a highway in four places in the state of Mato Grosso, a major grains producer, according to the highway operator.

In one video circulating online, a man said truckers planned to block main highways, calling for a military coup to prevent Lula from taking office.

PINK TIDE RISING

Lula’s win consolidates a new “pink tide” in Latin America, after landmark leftist victories in Colombia and Chile’s elections, echoing a regional political shift two decades ago that introduced Lula to the world stage.

He has vowed a return to state-driven economic growth and social policies that helped lift millions out of poverty during two terms as president from 2003 to 2010. He also promises to combat destruction of the Amazon rainforest, now at a 15-year high, and make Brazil a leader in global climate talks.

“These were four years of hatred, of negation of science,” Ana Valeria Doria, 60, a doctor in Rio de Janeiro who celebrated with a drink. “It won’t be easy for Lula to manage the division in this country. But for now it’s pure happiness.”
A former union leader born into poverty, Lula’s two-term presidency was marked by a commodity-driven economic boom and he left office with record popularity.

However, his Workers Party was later tarred by a deep recession and a record-breaking corruption scandal that jailed him for 19 months on bribery convictions, which were overturned by the Supreme Court last year.

Reporting by Anthony Boadle and Ricardo Brito in Brasilia, Brian Ellsworth and Lisandra Paraguassu in Sao Paulo; Writing by Frank Jack Daniel, Editing by Brad Haynes, Lincoln Feast, Nick Macfie and Angus MacSwan

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Lula narrowly defeats Bolsonaro to win Brazil presidency again

SAO PAULO, Oct 30 (Reuters) – Luiz Inacio Lula da Silva narrowly defeated President Jair Bolsonaro in a runoff election on Sunday that marked a stunning comeback for the leftist former president and the end of Brazil’s most right-wing government in decades.

Brazil’s Supreme Electoral Court declared Lula the next president, with 50.9% of votes versus 49.1% for Bolsonaro. The 77-year-old Lula’s inauguration is scheduled for Jan. 1.

The vote was a rebuke for the fiery far-right populism of Bolsonaro, who emerged from the back benches of Congress to forge a novel conservative coalition but lost support as Brazil ran up one of the worst death tolls of the coronavirus pandemic.

Bolsonaro remained silent on Sunday night after the results were announced and some of his allies publicly acknowledged his defeat, defying expectations that he might immediately challenge the narrow result after making baseless claims of fraud in previous elections.

Bolsonaro did not make a call to Lula, according to campaign advisers.

Lula said in a speech he would unite a divided country and ensure that Brazilians “put down arms that never should have been taken up,” while inviting international cooperation to preserve the Amazon rainforest and make global trade more fair.

“I will govern for 215 million Brazilians, and not just for those who voted for me,” Lula said at his campaign headquarters. “There are not two Brazils. We are one country, one people, one great nation.”

Lula arrived at a rally in Sao Paulo shortly after 8:00 p.m. (1100 GMT), waving from the sunroof of a car. Ecstatic supporters near Paulista Avenue waited for him, chanting slogans and drinking champagne.

Vice President-elect Geraldo Alckmin and campaign aides jumped up and down chanting, “It’s time Jair, it’s time to leave already,” in a video circulating on social media.

OPPOSITION

Last year, Bolsonaro, 67, openly discussed refusing to accept the results of the vote.

A senior Bolsonaro campaign aide, speaking on condition of anonymity, said he would not make a speech on Sunday. The Bolsonaro campaign did not respond to a request for comment.

One close Bolsonaro ally, lawmaker Carla Zambelli, in an apparent nod to Lula’s victory wrote on Twitter, “I PROMISE you, I will be the greatest opposition that Lula has ever imagined.”

Electoral authorities are bracing for him to dispute the outcome, sources told Reuters, and made security preparations in case his supporters stage protests.

U.S. President Joe Biden congratulated Lula for winning “free, fair and credible elections,” joining a chorus of compliments from European and Latin American leaders.

His victory consolidates a new “pink tide” in Latin America, after landmark leftist victories in Colombia and Chile’s elections, echoing a regional political shift two decades ago that introduced Lula to the world stage.

Lula has vowed a return to state-driven economic growth and social policies that helped lift millions out of poverty when he was previously president from 2003 to 2010. He also promises to combat destruction of the Amazon rainforest, now at a 15-year high, and make Brazil a leader in global climate talks.

“These were four years of hatred, of negation of science,” Ana Valeria Doria, 60, a doctor in Rio de Janeiro who celebrated with a drink. “It won’t be easy for Lula to manage the division in this country. But for now it’s pure happiness.”

A former union leader born into poverty, Lula organized strikes against Brazil’s military government in the 1970s. His two-term presidency was marked by a commodity-driven economic boom and he left office with record popularity.

However, his Workers Party was later tarred by a deep recession and a record-breaking corruption scandal that jailed him for 19 months on bribery convictions, which were overturned by the Supreme Court last year.

In his third term, Lula will confront a sluggish economy, tighter budget constraints and a more hostile legislature.

Bolsonaro’s allies form the largest bloc in Congress after this month’s general election and won the races for governor in Brazil’s three most economically powerful states, highlighting the enduring strength of his conservative coalition.

Reporting by Brian Ellsworth and Lisandra Paraguassu in Sao Paulo, Anthony Boadle and Ricardo Brito in Brasilia, Gabriel Stargardter in Rio de Janeiro; Editing by Brad Haynes and Grant McCool

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EU countries approve energy windfall levies, turn to gas price cap

  • EU approves energy windfall profit levies
  • Countries eye gas price caps as their next move
  • States split over how to contain sky-high prices

BRUSSELS, Sept 30 (Reuters) – European Union countries agreed on Friday to impose emergency levies on energy firms’ windfall profits, and began talks on their next move to tackle Europe’s energy crunch – possibly a bloc-wide gas price cap.

Ministers from the 27 EU member countries met in Brussels on Friday, where they approved measures proposed earlier this month to contain an energy price surge that is stoking record-high inflation and threatening a recession.

The package includes a levy on fossil fuel companies’ surplus profits made this year or next, another levy on excess revenues low-cost power producers make from soaring electricity costs, and a mandatory 5% cut in electricity use during peak price periods.

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With the deal done, countries began talks on Friday morning on the EU’s next move to contain the price crunch, which many countries want to be a broad gas price cap, though others – most notably Germany – remain opposed.

“All these temporary measures are very well, but in order to find the solution to help our citizens in this energy crisis, we need to cap the gas price,” Croatian economy minister Davor Filipovic said on his arrival at Friday’s meeting.

Fifteen countries, including France, Italy and Poland, this week asked Brussels to propose a price cap on all wholesale gas transactions to contain inflation.

The cap should be set at a level that is “high and flexible enough to allow Europe to attract the required resources”, Belgium, Greece, Poland and Italy said in a note explaining their proposal seen by Reuters on Thursday.

The countries disputed the Commission’s claim that a broad gas price cap would require “significant financial resources” to finance emergency gas purchases should market prices break the EU’s cap.

Belgian energy minister Tinne Van der Straeten said only 2 billion euros ($1.96 billion) would be required, as most European imports fall under long-term contracts or arrive by pipeline with no easy alternative buyers.

That would be a fraction of the 140 billion euros the EU expects its windfall profit levies on energy firms to raise.

But Germany, Austria, the Netherlands and others warn broad gas price caps could leave countries struggling to buy gas if they cannot compete with buyers in price-competitive global markets.

A diplomat from one EU country said the idea posed “risks to security of supply” as Europe heads into a winter with tight energy supplies after Russia slashed gas flows to Europe in retaliation for Western sanctions against Moscow for invading Ukraine.

The European Commission has also raised doubts and suggested the EU instead move ahead with narrower price caps, targeting Russian gas alone, or specifically gas used for power generation.

“We have to offer a price cap for all Russian gas,” EU energy policy chief Kadri Simson said.

Brussels suggested that idea earlier this month, but it hit resistance from central and eastern European countries worried Moscow would retaliate by cutting off the remaining gas it still sends to them.

By introducing EU-wide measures Brussels hopes to overlay governments’ uneven national approaches to the energy crunch, which have seen richer EU countries far outspend poorer ones in handing out cash to ailing companies and consumers struggling with bills.

Germany, Europe’s biggest economy, set out a 200 billion euro package on Thursday to tackle soaring energy costs, including a gas price brake.

Luxembourg energy minister Claude Turmes urged Brussels to change EU state aid rules to stop the “insane” spending race between countries.

“That’s the next frontier, to get more solidarity and to stop this infighting,” Turmes said.

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Reporting by Kate Abnett and Gabriela Baczynska; Additional reporting by Philip Blenkinsop, Bart Meijer and John Chalmers; Editing by Jan Harvey

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God does not back war, pope says in apparent criticism of Russian patriarch

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NUR-SULTAN, Sept 14 (Reuters) – Pope Francis said on Wednesday that God does not guide religions towards war, an implicit criticism of Russian Orthodox Patriarch Kirill, who backs the invasion of Ukraine and has boycotted a conference of faith leaders.

On his second day in Kazakhstan, Francis addressed the Seventh Congress of Leaders of World and Traditional Religions, a meeting that brings together Christians, Jews, Muslims, Buddhists, Hindus and other faiths.

Kirill was to have attended, but pulled out. read more

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The Russian Orthodox Church (ROC) sent a delegation headed by its number two, Metropolitan Anthony, who later briefly met the pope.

“God is peace. He guides us always in the way of peace, never that of war,” Francis said, speaking at a huge round table in the Independence Palace, a massive modern structure made of steel and glass in the capital of the former Soviet republic.

“Let us commit ourselves, then, even more to insisting on the need for resolving conflicts not by the inconclusive means of power, with arms and threats, but by the only means blessed by heaven and worthy of man: encounter, dialogue and patient negotiations,” he said.

The pope, who earlier this year said Kirill could not be Russian President Vladimir Putin’s “altar boy”, told the conference: “The sacred must never be a prop for power, nor power a prop for the sacred!”

Kirill has given enthusiastic backing to Russia’s invasion of Ukraine, which the patriarch views as a bulwark against a West he calls decadent. read more

Francis later mentioned Ukraine at the end of a Mass for about 6,000 members of Kazakhstan’s tiny Catholic community, asking “how many deaths will it still take” before conflict yields to dialogue.

About 70% of Kazakhs are Muslim and about 26% Orthodox Christians. There are only about 125,000 Catholics among the 19 million population of the vast Central Asian country.

He also expressed concern over the flare up in the South Caucasus between Armenia and Azerbaijan. read more

POPE-PATRIARCH MEETING STILL POSSIBLE

Kirill’s stance on Ukraine has caused a rift with the Vatican and unleashed an internal rebellion that has led to the severing of ties by some local Orthodox Churches with the Russian Orthodox Church. read more

Metropolitan Anthony told reporters his meeting with the pope was “very cordial” but said Francis’ “altar boy” remark about Kirill was “not helpful for the unity of Christians” and that it surprised the Russian Orthodox Church.

Anthony said the pope told him he wanted to have a second meeting with Kirill. The first was in Cuba in 2016.

Francis also said that, while violence in God’s name was never justified, the “viruses” of hate and terrorism would not be eradicated without first wiping out injustice and poverty.

He said religious freedom was essential for peaceful coexistence in any society and no creed had a right to coerce others to convert.

Francis, who wrote a major document in 2015 on the need to protect the environment, said religious leaders had to be in the front line in bringing attention to the dangers of climate change and extreme weather, particularly its effects on society’s poor and vulnerable.

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Reporting by Philip Pullella; Editing by Michael Perry, Alex Richardson, Alexandra Hudson

Our Standards: The Thomson Reuters Trust Principles.

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EU divided over capping Russian gas price amid ‘energy war’

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  • Countries resist EU proposal to cap Russian gas price
  • Broader support seen for cash aid to energy firms
  • Ministers to discuss windfall levy, electricity use cut

BRUSSELS, Sept 9 (Reuters) – European Union energy ministers were split on Friday over whether to cap Russian gas prices, as they met to work out steps to shield citizens and businesses from sky-high energy bills.

But ministers arriving for the emergency meeting indicated broad backing for moves to prevent power providers from being crushed by a liquidity crunch and several said it was urgent to decouple the price of gas from other cheaper energy sources.

Friday’s ministerial talks aim to whittle down options for further discussion, rather than reaching a final decision on ways to tackle a crisis fuelled by Russia’s invasion of Ukraine. But many said agreement and action needed to be swift.

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“We are in an energy war with Russia,” Czech Industry Minister Jozef Sikela said. “We have to send a clear signal that we would do whatever it takes to support our households, our economies.”

Energy bills, already surging as demand for gas recovered from the COVID-19 pandemic, have rocketed higher since the Ukraine war. As Russia has reduced gas deliveries to Europe following the imposition of Western sanctions, EU governments have scrambled to limit the resulting energy price shock.

An EU proposal to cap Russian gas prices has so far failed to win support from a majority of countries, with Russia threatening to completely cut off the dwindling supplies that have continued to flow if such a step is taken.

Baltic states are among those backing the idea, saying it would deprive Moscow of cash to fund military action in Ukraine.

“Russia has said if you want our gas, take down the sanctions. It is blackmail. We cannot back down, we have to be united, we have to have the political will to help Ukraine win,” Estonian Economic Affairs Minister Riina Sikkut said.

But central and eastern European states, many of them more reliant than others on Russian fuel, fear losing all their supplies, while some question whether a cap would have much impact on reducing prices when deliveries are so low.

“If price restrictions were to be imposed exclusively on Russian gas, that would evidently lead to an immediate cut-off in Russian gas supplies. It does not take a Nobel Prize to recognise that,” Hungarian Foreign Minister Peter Szijjarto said.

MARKET REFORMS

German Economy Minister Robert Habeck said EU ministers should give Brussels the green light to prepare legislation to decouple the gas price from the price consumers pay for power from other energy carriers.

The European Commission this week said it would propose a measure to claw back revenues from non-gas power generators and spend the cash on cutting consumer bills.

A draft of the Commission proposal, seen by Reuters, would cap at 200 euros ($201.74) per megawatt hour the revenues non-gas producer receive. It would apply to wind, nuclear and coal generators.

European power prices are typically set by gas plants, so the cap would aim to skim off excess profits made in recent months by non-gas producers that have lower running costs but have still been able to sell their power at soaring prices.

“The measures the Commission has recommended in taking some of those excess profits and recycling them back into the households makes sense,” Irish Environment Minister Eamon Ryan said.

But France, home to Europe’s biggest nuclear power fleet, questioned whether the same limit should be applied to all non-gas generators.

EU diplomats said governments broadly supported the EU’s proposal to offer emergency liquidity to power firms facing soaring collateral requirements, although the details of this have yet to be fleshed out.

Finland and Sweden have already offered billions of dollars in liquidity guarantees to power companies in a bid to prevent the cash squeeze from toppling firms.

The EU ministers held a minute’s silence at the start of their meeting, in memory of Britain’s Queen Elizabeth, who died on Thursday after 70 years on the throne.

($1 = 0.9914 euros)

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Additional reporting by Sabine Siebold, Bart Meijer, Marine Strauss, by Benjamin Mallet, Philip Blenkinsop, Gabriela Baczynska; Writing by Kate Abnett and Ingrid Melander; Editing by Edmund Blair

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