Thursday, June 22, 2023

Top Pork Producer Says Loss-Making US Farmers Will Shrink Herds

Michael Hirtzer
Wed, June 21, 2023 


(Bloomberg) -- American pig farmers are losing so much money that some may soon start selling the corn they would normally use to feed animals, according to the world’s largest hog producer.

It’s a sign that producers will soon take steps to shrink their herds, with growers losing as much as $80 a head, said Shane Smith, chief executive officer of Smithfield Foods. Demand from top buyer China is waning at a time the cost to feed animals is surging.

A drought in the Midwest has deteriorated crops, with corn at its worst conditions for this time of year since 1992. That’s squeezing profits and making it more appealing for growers to sell the grain, which has risen more than 10% in the last four trading days.

“There’s a concentration of people in the industry who grow their own corn, they grow their corn and they feed it to the animal,” he said in an interview on Wednesday at the Wall Street Journal’s Global Food Forum in Chicago. “They’re going to have to make a decision. Do I sell my corn and just forget about the animal?”

American growers usually only start shrinking herds when they face cash flow losses, and that is already happening, Smith said. He declined to comment on whether Smithfield, owned by Hong Kong-listed WH Group, is planning to cut back as well.

The American meat market is facing a glut that may take until the end of next year and into 2025 to normalize, he said. That’s all happening just as only 55% of the US corn crop was rated good to excellent, the lowest for this time of year in more than three decades, according to data from the US Department of Agriculture.

To make matters worse, California, which consumes about 15% of the nation’s pork, installed a law requiring meat sold in the state to come from animals raised in larger spaces, raising costs for producers.

“This industry is in an incredibly difficult cycle,” Smith said.

Most Read from Bloomberg Businessweek
USDA approves Upside Foods, Good Meat to sell cultivated chicken

USDA approves 'cell-cultivated' chicken meat like big chicken nuggets  or chicken cutlets


Brooke DiPalma
·Reporter, Booking Producer
Wed, June 21, 2023

On Wednesday, the United States Department of Agriculture (USDA) granted approval for Upside Foods and Good Meat, a subsidiary of Eat Just, Inc., to produce and sell their lab-grown cell-cultivated chicken products in the United States.

Both companies are gearing up to debut their products with well-known restauranteurs. Upside Foods plans to debut its products at 3-Michelin star chef Dominique Crenn's Bar Crenn in San Francisco. Good Meat is teaming up with celebrity chef José Andrés at one of his restaurants in Washington, DC, though there's no word on which one or when customers will start seeing the meat on the menu.

Good Meat's products have been available in Singapore since 2020 and are sold everywhere from fine-dining establishments to roadside vendors. In a press release, Josh Tetrick, co-founder and CEO of GOOD Meat and Eat Just, called its entry into the US market a "major moment for our company, the industry and the food system."

Upside founder and CEO Uma Valeti told Yahoo Finance on Wednesday that it believes its "delicious, complex, and whole-textured chicken product" will "set the gold standard for the industry."

Both companies cultivate their meat by placing chicken cells in large steel vessels. They then feed the cells nutrients to help them multiply and grow. It takes the meat about two to three weeks to develop and be harvested before it's ready to eat. On its website, Upside compared the process to that of brewing beer, "but instead of growing yeast or bacteria, we grow animal cells."


Upside Foods' Engineering, Production, and Innovation Center

For now, however, cultivated meat will come at a cost. Valeti told Yahoo Finance the company will start with premium pricing.

“Our aspirational goal at the moment is to beat the conventional prices....we're going to start out with premium pricing when we come into the market...that's because we are on a small scale," Valeti said back in December when it received FDA approval. He said prices will likely come down over time. "We expect our products to be at parity with conventional meat, but that's going to be 5 to 15 years away.”

As of now its production center, known as the Engineering, Production, and Innovation Center (EPIC) can produce up to 50,000 pounds, with plans to expand capacity to 400,000 pounds.


UPSIDE Foods partners with 3-Michelin star chef Dominique Crenn to introduce cultivated meat offering to consumers. (Courtesy: UPSIDE Foods).

A spokesperson from Good Meat said pricing for its products will be similar to those at the upscale restaurants where it's being offered. He added that the company is willing to lose money as it gains customers' interest.

"We strive to work with restaurant partners to price our chicken dish on par with traditional dishes. We're not making money on sales, in fact, we're losing money, but it's important that our consumers are paying what they would for a traditional dish. As we scale, the cost will come down."

Neither company plans to enter grocery stores in the near future. Good Meat said it will be "quite a while" until it will hit grocery stores.

The industry is only beginning to heat up though. Per Grand View Research, the cultivated meat market was valued at $246.9 million last year and is set to grow at an annual rate of 51.6% from 2023 to 2030.



Brooke DiPalma is a reporter for Yahoo Finance. 







ZIONIST ILLEGAL SETTLEMENTS
Israel to move ahead with 1,000 new homes in Eli settlement

Reuters
Wed, June 21, 2023

JERUSALEM, June 21 (Reuters) - Israel plans 1,000 new homes for Eli settlement in the occupied West Bank in a potential doubling of its population in response to a Palestinian gun attack nearby that killed four people, Prime Minister Benjamin Netanyahu's office said on Wednesday.

The statement did not make clear if the plan included homes previously approved for construction, nor detail the timetable.

The West Bank is among areas where Palestinians want to establish an independent state, and which has seen increasing spasms of violence with U.S.-sponsored peacemaking efforts stalled for almost a decade.

Israel has peppered the West Bank with settlements that most world powers view as illegal. Israel disputes this, deeming the land a biblical birthright and security bulwark. Washington has urged its ally not to proceed with settlement projects in the territory, which Israel captured in the 1967 Middle East war.

On Tuesday, two Hamas gunmen killed four Israeli civilians outside Eli. The Islamist group, which preaches Israel's destruction, called the attack retaliation for a deadly Israeli raid elsewhere in the West Bank on Monday.

"Our response to terrorism is to strike at it mightily and build up our land," the statement from Netanyahu's office said.

It said Netanyahu, Finance Minister Bezalel Smotrich and Defence Minister Yoav Gallant "agreed to move ahead immediately" with the new Eli homes.

Settlement watchdog group Peace Now said Eli now has around 1,000 homes, meaning Wednesday's announcement could spell a doubling of its population. It was unclear if the plan included 500 new Eli homes that had been scheduled to come up for approval next week, Peace Now official Yonathan Mizrahi said.

The total settlement population in the West Bank has grown to 465,400, among 2.58 million Palestinians, according to Peace Now. (Writing by Dan Williams; editing by Mark Heinrich)
A man who survived being stuck in a submersible for 3 days said it felt like there wasn't even 'one atom of hope' left for him as time dragged on

Titan sub raised red flags long before it went missing

Kwan Wei Kevin Tan
June 21,2023
 Insider

Rescue teams are racing against time to locate the missing submersible.

Roger Mallinson survived being stuck in a submersible for three days in September 1973.


Mallinson told Newsweek about the mental toll for those aboard the missing submersible.


"They will have absolutely not one atom of hope," he said.


A man who survived after being stuck in a submersible for three days in 1973 spoke to Newsweek about the immense mental strain he went through when plunged into a similar life-and-death scenario.

"They will have absolutely not one atom of hope," said Roger Mallinson of the people in the missing Titan tourist submersible.

Mallinson, a former British Royal Navy pilot, survived the world's deepest underwater rescue in September 1973, according to the Guinness World Records. He was with his late co-pilot, Roger Chapman, when a broken hatch sent their submersible, the Pisces III, plummeting 1,575 feet below sea level. The two men had been on a regular dive to lay transatlantic telephone cables on the seabed, just 150 miles off the coast of Ireland.

There was a happy ending to Mallinson's story: He and Chapman were rescued from the Pisces III on September 1, 1973, with just 12 minutes of oxygen left, per the BBC.

"It took 84 hours to rescue us," Mallinson told Sky News. "We didn't have enough food. We didn't have enough oxygen."

"We just had to really be rationing everything and look after each other," he added.

Five passengers, including the submersible's maker Stockton Rush and British billionaire Hamish Harding, are currently lost in the missing submersible.

The US Coast Guard said in a statement on Wednesday that rescue efforts are ongoing.

Search teams have been racing against time to locate the missing submersible, which could run out of oxygen by Thursday afternoon.

"If I could say anything to them, it would be to stay warm and keep hoping," Mallinson told Newsweek.

"If you have a hammer, it would be great to knock on the sphere, make some noise. It will transmit a hell of a long way. They are all listening for it," he said.

The US Coast Guard said in a tweet on Wednesday that they have detected underwater noises in the search area and have shared sound recordings with the US Navy "for analysis to help guide future search efforts."

India Is Becoming A New Powerhouse In Global Steel Production


Editor OilPrice.com
Tue, June 20, 2023 
Via AG Metal Miner

COVID-19, poor demand, and several other factors caused a drop in steel production worldwide the past few years. This included China, which is not only the biggest steel producer, but one with a massive impact on steel prices. Indeed, according to a report by the World Steel Association, global crude steel production, including semi-finished products, ingots, and liquid steel, fell to 1.89 billion tons in 2022. This is 3.9% less than 1.96 billion tons in 2021.

The silver lining, as has become the norm now, was India. While China’s production fell for the second consecutive year, India was the only country on the list of large producers to increase steel production. In fact, the country’s output recently reached 125.3 million tons (MT), up from 118.2 MT in the previous year.

India’s growth is particularly significant, considering that many of the largest steel-producing countries, including China, Japan, the U.S., and Russia, experienced declines in production. In fact, Iran was the only other country among the top 10 nations to see a rise in steel output.

Steel Prices: India Commits to Further Increasing Output

Throughout 2022, China produced 1,018 MT of crude steel. This is 1.6% lower than 2021, when figures fell by 2.8%. Still, China produced more steel than the rest of the world combined and 12 times more than the U.S. Indeed, the country produces over half the crude steel in the world, and has been largely responsible for the surge in global crude steel production since 2000. Between that year and 2022, China’s production zoomed 735%. Meanwhile, North America’s production fell by 18%, and production in the rest of the world rose by 29%.

Now that China’s output is declining, India is seizing the opportunity. In 2019, India became the second-largest steel producer in the world, surpassing Japan. Though the gap between the #1 and #2 spots is still very large, experts believe China’s southwestern neighbor is on the ascendancy. After all, many expect India’s domestic steel demand to continue expanding in the coming years, driven by infrastructure development and increased construction activity.

Remember, India still has a very poor per capita steel consumption rate – just one-third of the world’s average. However, the Indian Government has set a target of increasing the share of the manufacturing sector to 25% of the GDP by 2025. It also hopes to achieve 300 MT per annum of steel production by 2030.
Production Declines Elsewhere an Opportunity for India

The Indian Steel Association (ISA) projects a 7.5% growth in domestic steel demand for the fiscal year 2024. This will put output at 128.85 MT compared to 119.86 MT in FY23. In FY25, the ISA expects a further 6.3% increase to 136.97 MT. This anticipated growth in demand is primarily attributed to the government’s focus on infrastructure development and the expansion of construction activities.

So far, in 2023, India seems committed to this path of growth, whereas China has allowed demand to drop. According to this report, global crude steel production decreased by 2.4% in April compared to the same period last year. The World Steel Association also noted that its 63 reporting countries produced 161.4 MT of steel in April 2023. This is a significant decline from the 162.7 million tons in April 2022. China alone saw a 1.5% decline, producing 92.6 MT of steel during the same period. Japan and the U.S. also recorded decreases in steel production by 3.1% & 5.3%, respectively.

Meanwhile, India saw an increase in steel production, growing 3.2% to reach 10.7 MT. Other global support came from Russia, whose production increased by 1.9% to 6.4 MT. South Korea’s output increased by 3% to 5.7 MT and Iran reported an increase of 5.9% to 3.1 MT.

Amidst China’s struggling construction sector and the looming possibility of recessions in the U.S. and Europe, there is no doubt that India is now a crucial factor in revitalizing global steel demand.

By Sohrab Darabshaw
UK
Southampton cruise ships' methane emissions surge, study says

BBC
Tue, June 20, 2023 

A UK port has seen a dramatic rise in methane emissions from cruise ships, a study has said.

Vessels in Southampton produced more than 14 tonnes of the potent global warming gas in 2022, a 36-fold increase over three years, according to campaign group Transport & Environment (T&E).

It blamed the introduction of new ships using liquefied natural gas (LNG) fuels.

The city's main cruise firm Carnival said emissions had reduced since 2011.


Southampton's methane emissions ranked 15th in Europe, according to the report

T&E said the rise in methane was the "most worrying trend" in European cruise ship emissions.

Its report said the UK's first LNG-powered cruise ship, P&O's Iona, produced as much methane in 2022 as 10,500 cows.


The group said the problem was caused by "methane slip" - the incomplete combustion of methane-based LNG fuels.

T&E said: "These ships are better in terms of air pollution, but they are extremely damaging from a climate perspective due to methane leaks from their engines."

It added that carbon dioxide emissions from Southampton's 44 cruise ships rose 14% over three years to 32 tonnes in 2022.

The port had visits from 41 cruise ships in 2019.

Scientists say methane is a much more potent global warming gas than carbon dioxide.

Over a 100-year period it is thought to be 28-34 times as warming as CO2, while over a 20-year period it is around 84 times as powerful per unit of mass as carbon dioxide.

Carnival, P&O Cruises' parent company, said it could not comment directly on the T&E study.

However, a spokesperson said: "The science is clear - the most credible peer-reviewed study on the subject shows that LNG has much lower overall greenhouse gas emissions vs. conventional fuels, even factoring in methane slip."

The firm said it had reduced greenhouse gas emissions since 2011 and aimed to achieve carbon-neutral ship operations by 2050.

Migrant crisis: Tunisian fisherman finds dead bodies in his net

Mike Thomson - BBC News, Sfax
Wed, June 21, 2023 

Fisherman Oussama Dabbebi on his boat holding a net in Sfax, Tunisia

As the number of migrants trying to reach Europe grows so does the number of deaths in the Mediterranean.

While European Union officials struggle to contain the exodus, the plight of those fleeing poverty and persecution is leaving its tragic mark on the shores of Tunisia.

As the sun creeps above the horizon off the shores of its eastern coast, fisherman Oussama Dabbebi begins hauling in his nets. His face fixes anxiously on its contents, because sometimes fish are not all he finds.

"Instead of getting fish, I sometimes get dead bodies. The first time I was afraid, then step by step I got used to it. After a while getting a dead body out of my net is like getting a fish."


The 30-year-old fisherman, clad in a dark, hooded sweatshirt and shorts, says he recently found the bodies of 15 migrants in his nets over a three-day period.

"Once I found a baby's body. How is a baby responsible for anything? I was crying. For adults it's different because they have lived. But you know, for the baby, it didn't see anything."

Mr Dabbebi has fished these waters near Tunisia's second city of Sfax since he was 10 years old.

In those days he was one of many casting their nets, but now he says most fishermen have sold their boats for vast sums to people smugglers.

"Many times smugglers have offered me unbelievable amounts to sell my boat. I have always refused because if they used my boat and someone drowned, I would never forgive myself."

Many African migrants are determined to reach Europe in the hope of a better life

A short distance away a group of migrants from South Sudan - which has been hit by conflict, climate shocks and food insecurity since its independence in 2011 - are walking slowly away from the port.

All ultimately hope to reach the UK. One explains that they have reluctantly abandoned a second attempt to cross to Italy because of an overcrowded boat and worsening weather.

"There were so many people and the boat was very small. We were still going to go, but when we pushed away from the shore it was really windy. There was too much wind."

According to Tunisia's National Guard, 13,000 migrants were forced from their often overcrowded boats near Sfax and returned to shore in the first three months of this year.

Between January and April this year some 24,000 people left the Tunisian coast in makeshift boats and made it to Italy, according to the UN refugee agency.

The country has now become the biggest departure point for migrants trying to reach Europe. Libya previously held this dubious accolade, but violence against migrants and abductions by criminal gangs have led to many travelling to Tunisia instead, before heading on to Europe.

Though the boat involved in last week's disaster off the Greek coast, which has left at least 78 people dead and an estimated 500 missing, had sailed from Libya.


Most fisherman in Sfax have sold their boats for vast sums to people smugglers

Many of their rusting and rotting vessels lie either half-submerged in water or stacked in huge piles next to Sfax's port. Forlorn reminders of the dangers of the world's deadliest known migration route.

Another stark reminder can be found at the cemetery on the outskirts of the city.

Rows of freshly dug graves lie empty in an extended part of the graveyard, waiting for the next loss sea disaster.

But they will not be enough. A new cemetery entirely dedicated to migrants is now being planned.

In just one two-week period earlier this year, the bodies of more than 200 migrants were retrieved from the sea here.

Across the whole Mediterranean, more than 27,000 people are known to have died trying to reach Europe since 2014.

This accelerating tragedy is causing great difficulties for the city.

The director of the regional health authority, Dr Hatem Cherif, says there simply are not the facilities to deal with so many deaths.

"The capacity of the hospital mortuary is a maximum of 35 to 40. This is usually sufficient, but with all this influx of bodies, which is getting worse, it's way past the numbers we can take."

As many as 250 bodies were brought to the mortuary recently. Most had to be placed in a chilled adjoining room, grimly named the "catastrophe chamber", one on top of each other. Though Dr Cherif was keen to point out that all will be buried in separate, numbered graves.

Many of those who die are unidentified, so DNA tests are being organised and the results carefully stored.

The idea is to enable relatives searching for loved ones to see if they are buried here, by checking for matches with their own DNA.


African migrants in Tunisia say they have become targets of racist attacks

Three hours' drive north-west of Sfax, several hundred members of Tunisia's black minority, many of them women and children, are camped in small tents outside the offices of the International Organization for Migration in central Tunis.

All were evicted from their homes and sacked from their jobs in the city after an incendiary, racist speech in February by the country's President Kais Saied.

He claimed "hordes" of illegal migrants were entering the country as part of a "criminal" plan to change its demography.

These comments were widely viewed as an attempt to find scapegoats for the country's economic crisis, which has led many desperate Tunisians to become migrants themselves.

Pointing to a recent stab wound on his arm, a young man originally from Sierra Leone - which still recovering from a brutal civil war that ended in 2002 - says that since the president's speech, knife-wielding local youths have assaulted many people here.

"Some Arab boys came here to attacks us. The police said they would keep us secure if we stay here. But if we go outside of this area, we are not safe."

This worrying situation and the continued jailing of opponents and erosion of civil rights by the country's president appear to be less of a priority for EU officials than curbing the flow of migrants.

So far this year more than 47,000 migrants have arrived in Italy, a three-fold increase on the same period of last year and demands have grown for something to be done.

During a brief visit here earlier this month a visiting delegation led by the head of the European Commission, Ursula Von der Leyen promised a possible financial support package of nearly 1bn euros ($1bn; £850m).

If approved, around a tenth of this sum would be spent on measures to tackle human trafficking.

Last week's tragedy off the Greek coast has heightened demands for something to be done.

Yet with many migrants so desperate and people smuggling so profitable for traffickers, stopping the flow of small boats will not be easy.

Crowds of migrants from all over Africa and parts of the Middle East gather in groups in shaded spots of the streets of Sfax.

Some have funds to pay for a place on a trafficker's boat, others live in limbo, unable to even pay for their food and shelter.

Many have either lost their passports or had them stolen, while some never had one having left their countries illegally.

All have heard of the deaths of so many who tried to reach Europe, but it seems desperation continues to trump danger, as a young man from Guinea made clear.

"We cannot go back to our country because we don't have money or passports. I'm not afraid. I'm starving, there is so much poverty [at home] and my parents have nothing. I don't want my children to live like that. I need to go."

The tragedy is that this basic human aspiration for a better life so often comes at such a very high price.


German leader defends deal to stop migrants at EU borders, says old system was 'dysfunctional'  STILL IS


German Chancellor Olaf Scholz addresses the German parliament Bundestag ahead of a European Council meeting at the Reichstag Building in Berlin, Germany, Thursday, June 22, 2023. A European Council meeting will be held in Brussels on June 29 and 30. 
(AP Photo/Markus Schreiber) 

Thu, June 22, 2023 

BERLIN (AP) — German Chancellor Olaf Scholz on Thursday defended a deal to stop migrants from entering the European Union until their chances of getting asylum have been reviewed, arguing that the bloc's existing arrangement is “completely dysfunctional.”

Speaking to lawmakers in Berlin, he said the compromise reached earlier this month by the EU's 27 member states after years of negotiations was a “historic agreement.”

Human rights groups have criticized the deal, saying migrants, including families with children, will be held in camps while authorities check whether they are likely to be granted refugee protection inside the EU. The details are still to be worked out in negotiations with the European Parliament, which must approve the change to EU migration rules.


“I know that the agreement isn't without controversy in this house,” Scholz told parliament. “Everyone had to make compromises, including Germany.”

“But it was the right thing to do in the interest of Europe's unity and ability to act,” he added. “It was right, because our current system is completely dysfunctional.”

In the period from January to May, a total of 135,961 people applied for asylum in Germany, up 76.6% on with the same period last year, according to the country’s Federal Office for Migration and Refugees.

Most of them came from Syria, Afghanistan or Turkey.

In 2022, 12,945 rejected asylum seekers were deported from Germany. However, according to German authorities, there were 304,308 people in Germany as of December 31, 2022, whose asylum plea had been rejected but who have not yet been deported, German news agency dpa reported.

The reasons for the delay in deporting them are manifold, running from health issues to bureaucratic hurdles. It often takes years until a final decision on an asylum application has been made because applicants can appeal through the courts if their claim is turned down.

Scholz noted that many migrants don't apply for asylum until they reach Germany, even though the country is surrounded by other EU member states that would have had to register them first under the bloc's existing rules.

“Those who only have a very slim chance of being recognized as refugees will go through a swift asylum and return process at the (EU's) external borders in the future,” he said. “Those who have good chances of getting protection in Europe, however, because they come from war zones or are politically persecuted, will be registered and able to enter the EU in the future.”


Scholz said the new system would ease the burden on Germany, which has seen more than 2 million asylum applications over the past decade.

He stressed that countries which refuse to take in their share of refugees would in future have to make a financial contribution toward the cost borne by others.

EU's top court says Hungary broke the law by forcing migrants to go abroad to start asylum process

LORNE COOK
Thu, June 22, 2023 

BRUSSELS (AP) — The European Union’s top court ruled Thursday that Hungary flouted the bloc’s laws and infringed on migrants' rights by forcing asylum seekers inside the country or at its borders to start the process at its embassies in Serbia and Ukraine.

Hungary’s anti-immigrant government has taken a hardline on people entering the country since well over one million people entered Europe in 2015, most of them fleeing conflict in Syria. It erected border fences and forcefully tried to stop many from entering.

After the COVID-19 pandemic outbreak in 2020, the government pushed through a law forcing people seeking international protection to travel to Belgrade or Kyiv to apply for a travel permit at its embassies there to enter Hungary. Only once back could they file their applications.

The EU’s executive branch, the European Commission, took Hungary to the European Court of Justice (ECJ) over the law, insisting that the country had failed to fulfil its obligations under the 27-nation’s blocs rules. The rules oblige all member countries to have common procedures for granting asylum.

People have the right to apply for asylum or other forms of international protection if they fear for their safety in their home countries, or face the prospect of persecution based on their race, religion, ethnic background, gender or other discrimination.

The ECJ ruled that by “making an application for international protection subject to the prior submission of a declaration of intent at a Hungarian embassy situated in a third country,” the government in Budapest “has failed to fulfil its obligations,” according to a court statement.

The court said that Hungary was in essence depriving people seeking protection of their right to “effective, easy and rapid access” to the procedures for doing so. It said that the new law could not be justified on public health grounds meant to limit the spread of the coronavirus.

It said that the obligation to travel to a third country could have put people at risk of catching and spreading the disease and that the conditions Hungary was imposing on them “constitutes a manifestly disproportionate interference” with their rights.

It is now up to the commission to decide whether to try to persuade Hungary to amend or withdraw its legislation, or to ask the court to impose fines.



 






Shifting S. Africa coal plant for clean energy needs millions in loans; experts say that's a problem

A man walks across from a grocery shop at Komati Power Station in Middelburg, South Africa, Monday, June 19, 2023. The coal-fired plant was shut down to make way for a solar, wind and battery storage plant.
(AP Photo/Themba Hadebe)


MOGOMOTSI MAGOME and SIBI ARASU
Thu, June 22, 2023 

MIDDELBURG, South Africa (AP) — Plumes of heat-trapping pollutants last billowed from the giant stacks of Komati Power Station in October, when the coal-fired plant that fed South Africa’s hungry electrical grid for more than half a century was shut down to make way for a solar, wind and battery storage plant.

Converting Komati to be part of the clean energy revolution is seen as an important test case for coal-reliant South Africa, the world's 16th-largest emitter of greenhouse gases, and developing nations elsewhere. It's supported by $497 million, most of it from the World Bank.

The problem, energy experts say, is that almost all that money is in the form of loans that can be difficult for developing nations to repay. And that risks hobbling the global effort to cut emissions and limit global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) above pre-industrial levels to stave off the worst effects of climate change.

For South Africa, which needs an estimated $38 billion over the next five years to meet its climate goals, the structure of the Komati funding should be concerning, said Andrew Lawrence, an analyst and senior researcher at the University of Witwatersrand in Johannesburg.

Not only is most of the money in loans, but the loans are dollar-denominated. South Africa's rand will depreciate against the dollar, “so that is going to become an increasingly snowballing financial burden,” Lawrence said.

As world leaders open a two-day global finance summit Thursday in Paris, a central question will be: How can they get the developing world the finances they need to move away from fossil fuels while also growing their economies?

“We can’t in the developing world say, look, you got rich by polluting, we’re going to wait till we get rich and then we’re going to start doing what you’re doing now,” said Avinash Persaud, special envoy to Barbados Prime Minister Mia Mottley on climate finance. “We could say that, but that isn’t the solution for the planet. What we need to do is finance the transition so it can be scaled up and done faster than it would otherwise get done.”

Persaud was one of the architects of the Bridgetown Initiative, first put forward by Mottley at last year's United Nations climate summit in Egypt and now expected to be a cornerstone of the Paris summit. The initiative, named for the Barbados capital, would overhaul the way development lending works to aid developing nations struggling under rising debt from climate damage.

It calls for loan clauses that allow for suspending payments when a country is hit by a natural disaster or pandemic, thus freeing up millions of dollars that could be spent on relief and rebuilding. Barbados has been a pioneer in such clauses, last year issuing its first sovereign bond with such a provision.

The plan offers several ideas for lowering borrowing costs for developing countries, including offering loans to climate-vulnerable countries at below-market rates. Another would have the World Bank and other multilateral development banks offer currency risk guarantees so investors aren't worried about currency fluctuations.

Loans made in local currency can help protect recipient countries if their currencies are downgraded, said David Uzsoki, who offers research and advice on sustainable finance to investors and government officials via the International Institute for Sustainable Development. But international lenders needed to back large projects are generally not willing to take on that risk, he said.

Riya Saxena of the New Delhi-based clean energy non-profit group RMI India said that makes it all the more important to come up with innovative financial structures that guard international investors from currency risks.

A panel of scientists convened by the United Nations estimated that $2.4 trillion is needed each year by 2035 if the world is to limit warming to 1.5 degrees Celsius. Much of that need is in developing countries, who account for nearly 80% of the world’s population and whose leaders have made repeated promises to bring their people out of poverty.

Growing economies and improving living conditions have a cost, though, especially when the growth is fueled by fossil fuels. While 79% of greenhouse gases emitted in the last 170 years are from rich countries, developing countries have contributed up to 63% of annual emissions in recent years, according to an analysis by the Center for Global Development.

And pressure to continue using fossil fuels can be intense. South Africa, which gets 80% of its electricity from coal, is dealing with a power shortfall that has led to rolling nationwide blackouts that have damaged the economy. With national elections looming next year, President Cyril Ramaphosa this spring said South Africa might delay decommissioning some coal plants to ease the blackouts.

Suranjali Tandon, an associate professor at the National Institute of Public Finance and Policy, a research institute under India's Ministry of Finance, was dubious about the “massive shift" in global finance that the Bridgetown Initiative would require. She suggested changes might be easier at a regional level — for example, dedicating tax revenues from fossil fuel users in a region to climate finance needs in that region.

Other climate experts fear the World Bank and other development banks just don’t have the money to support the clean energy transition in the developing world.

But Franklin Steves, of the environmental think tank E3G, said he saw momentum for the Bridgetown Initiative and felt some optimism for Paris.

“There are some really good proposals on the table, and I hope the Paris summit should be kicking off processes around all of these,” he said.

Back in Komati, about 2 hours northeast of Johannesburg, the former coal plant looked deserted this week, with only security guards and cleaners on site and large parking lots sitting empty. In a community where everyone depended on coal jobs to make ends meet, groups of men could be seen on most corners, hoping to be picked up by contractors in trucks for temporary jobs as gardeners or cleaners in nearby settlements.

Work on repurposing the plant is expected to take up to five years. Some of the World Bank money is to go toward retraining former plant employees; this week, power utility Eskom invited bids for a plan to mitigate the effect of the plant's closure on surrounding communities.


 

 

 

 

 

 

   

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Arasu reported from Bengaluru, India.

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Maya civilisation: Archaeologists find ancient city in jungle

Vanessa Buschschlüter - BBC News
Wed, June 21, 2023 

Archaeologists in Mexico have discovered the remains of an ancient Maya city deep in the jungle of the Yucatán Peninsula.

Experts found several pyramid-like structures measuring more than 15m (50ft) in height.

Pottery unearthed at the site appears to indicate it was inhabited between 600 and 800 AD, a period known as Late Classic.

Archaeologists have named the site Ocomtún (Mayan for stone column).


The abundance of stone columns inspired the name researchers gave the city

The Maya are considered to have been one of the great civilisations of the Western Hemisphere, renowned for their pyramid temples and great stone buildings in an area which is now southern Mexico, Guatemala and Belize.

These latest remains were found in an ecological reserve in the state of Campeche, an area so dense with vegetation that it has been little explored.

Mexico's National Institute for Anthropology and History (INAH) said that its discovery was the result of field work aimed at documenting the archaeology of the Central Maya Lowlands, an area spanning 3,000 sq km of uninhabited jungle.

INAH said that airborne laser scanning carried out by the University of Houston had helped the research team spot "numerous concentrations of pre-Hispanic structures".

Ivan Sprajc, who led the team, said they had been most surprised by the discovery of an elevated terrain surrounded by wetlands.

On that elevated terrain, they found several large buildings, including a number of pyramid-shaped ones measuring more than 15m.

"The site would have served as an important regional centre," Mr Sprajc said in a statement released by INAH.

The cylindrical stone columns which prompted the researchers to name the site Ocomtún were probably entrances to rooms in the upper parts of the buildings, he added.

According to Mr Sprajc the site probably underwent considerable changes between 800 and 1000 AD before falling victim to the collapse of the Lowland Maya civilisation in the 10th Century.