US, UAE Focus on Using Climate Change to Drive Global Growth

US Special Presidential Envoy for Climate John Kerry with Dr. Sultan Al Jaber, the Special Envoy for Climate Change and Minister of Industry and Advanced Technology in Abu Dhabi. (WAM)
US Special Presidential Envoy for Climate John Kerry with Dr. Sultan Al Jaber, the Special Envoy for Climate Change and Minister of Industry and Advanced Technology in Abu Dhabi. (WAM)
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US, UAE Focus on Using Climate Change to Drive Global Growth

US Special Presidential Envoy for Climate John Kerry with Dr. Sultan Al Jaber, the Special Envoy for Climate Change and Minister of Industry and Advanced Technology in Abu Dhabi. (WAM)
US Special Presidential Envoy for Climate John Kerry with Dr. Sultan Al Jaber, the Special Envoy for Climate Change and Minister of Industry and Advanced Technology in Abu Dhabi. (WAM)

The UAE and the US held talks that focused on using climate change action to drive regional and global growth.

The Special Envoy for Climate Change and Minister of Industry and Advanced Technology, Dr. Sultan Al Jaber, and US Special Presidential Envoy for Climate John Kerry met in Abu Dhabi.

The two envoys discussed progress on the Agriculture Innovation Mission for Climate Initiative (Aim for Climate) that the UAE announced alongside the US at the Leaders Summit on Climate in Washington.

The envoys reaffirmed their countries’ commitment to achieving the goals of the Paris Agreement, which aims to limit global warming.

They agreed that a comprehensive approach - including investments in renewable energy, carbon-capture technologies, nature-based solutions, climate-smart agriculture, and other low-carbon solutions - is not only essential in this critical decade for climate but can also act as powerful drivers for sustainable economic growth and job creation.

“His return to the Emirates reaffirms the unique partnership between our two countries and our shared commitment to transform climate action into an opportunity for economic development and diversification,” Jaber said.

“Doubling down on investments in innovative new technologies and R&D will pay dividends both in terms of climate progress and economic growth, and as global economies fully recover from Covid-19, smart initiatives can put the world on a low-carbon/high-growth trajectory that meets the Paris goals.”

Kerry welcomed the UAE’s offer to host the 28th UN Climate Change Conference of the Parties (or Cop28) to the United Nations Framework Convention on Climate Change in 2023.

“I think it is very important that an oil and gas producing nation is smart enough to see that investing in alternative and renewable energy does not detract from economic prosperity or from income,” Kerry added.

“It actually builds additional and alternative sources. I think the leadership of the UAE is well aware that the planet has very serious problems, and the UAE is very busy looking at ways to abate and reduce and capture emissions.”

“I think that’s one of the reasons the UAE won a seat on the UN Security Council, because people see the leadership of the UAE as thoughtful and wanting to contribute to global solutions to global problems,” he concluded.



Oil Wavers as Trump's Colombia Sanctions Threat Rattles Markets

Pump Jacks are seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson
Pump Jacks are seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson
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Oil Wavers as Trump's Colombia Sanctions Threat Rattles Markets

Pump Jacks are seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson
Pump Jacks are seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson

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Oil market momentum was kept in check on Monday as prices fluctuated in and out of negative territory, with traders on edge despite the US pulling back from initial sanctions threats against Colombia, reducing immediate concern over oil supply disruptions.

Brent crude futures fell 36 cents, or 0.5%, to $78.14 a barrel by 1200 GMT. US West Texas Intermediate crude was at $74.27, down 39 cents, or 0.5%.

Both benchmarks oscillated between moderate gains and losses in early trading.

The US swiftly reversed plans to impose sanctions and tariffs on Colombia after the South American nation agreed to accept deported migrants from the United States, the White House said late on Sunday, Reuters reported.

Colombia last year sent about 41% of its seaborne crude exports to the US, data from analytics firm Kpler shows.

"Even if the sanctions didn't take place, this still creates nervousness that Trump will bully whoever needs to be bullied to get his way," said Bjarne Schieldrop, chief commodities analyst at SEB.

"Fundamentally, the market is surprisingly tight," said Schieldrop, referring to time spreads showing that the price of crude oil for quicker delivery is rising.

Gains were limited by Trump's repeated call on Friday for the Organization of the Petroleum Exporting Countries (OPEC) to cut oil prices to hurt oil-rich Russia's finances and help to end to the war in Ukraine.

"One way to stop it quickly is for OPEC to stop making so much money and drop the price of oil ... That war will stop right away," Trump said.

Trump has also threatened to hit Russia "and other participating countries" with taxes, tariffs and sanctions if a deal to end the war in Ukraine is not struck soon.

Russian President Vladimir Putin said on Friday that he and Trump should meet to talk about the Ukraine war and energy prices.

"They are positioning for negotiations," said John Driscoll at Singapore-based consultancy JTD Energy, adding that this creates volatility in oil markets.

He added that oil markets are probably skewed a little bit to the downside, with Trump looking to boost US output and try to secure overseas markets for US crude.

"He's going to want to muscle into some of the OPEC market share; so in that sense he's kind of a competitor," Driscoll said.

However, OPEC and its allies including Russia have yet to react to Trump's call, with OPEC+ delegates pointing to a plan already in place to start raising oil output from April.

Both oil benchmarks registered their first weekly decline in five weeks on easing concern last week over potential supply disruptions resulting from the latest sanctions on Russia.

Goldman Sachs analysts said they do not expect a big hit to Russian production because higher freight rates have encouraged non-sanctioned ships to move Russian oil while the deepening discount on the affected Russian ESPO grade attracts price-sensitive buyers.

Still, JP Morgan analysts said some risk premium is justified given that nearly 20% of the global Aframax fleet currently faces sanctions.

"The application of sanctions on the Russian energy sector as leverage in future negotiations could go either way, indicating that a zero risk premium is not appropriate," they added in a note.

Elsewhere, Chinese manufacturing data on Monday was weaker than expected, adding fresh concerns over energy demand.