‘We need to stop’: Inside the world’s first diplomatic alliance to keep oil and gas in the ground

Published

3 years ago

September 20, 2021

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Sheep on a road in view of mobile offshore drilling units in the Port of Cromarty Firth in Cromarty, U.K., on Tuesday, June 23, 2020.

Jason Alden | Bloomberg | Getty Images

LONDON — Costa Rica and Demark are spearheading efforts to build the world’s first diplomatic alliance to manage the decline of oil and gas production.

The co-leaders of the initiative, known as the “Beyond Oil and Gas Alliance,” are seeking to establish a deadline for the end of oil and gas production that would get countries aligned with the 2015 Paris Agreement. This legally binding treaty aims to limit global heating to below 2 degrees Celsius above pre-industrial levels — and preferably to 1.5 degrees Celsius. Meeting the conditions of the agreement is widely recognized as critically important to avoid an irreversible climate crisis.

The Beyond Oil and Gas Alliance is expected to formally launch at U.N.-brokered climate talks in early November, a summit known as COP26.

Until then, Costa Rica and Demark are seeking to persuade as many countries and jurisdictions as possible to join them in bringing an end to oil and gas production.

It comes at a time when policymakers are under intense pressure to meet the demands of the climate emergency. Burning fossil fuels, such as oil and gas, is the chief driver of the climate crisis, and yet the world’s fossil fuel dependency is expected to get even worse in the coming decades.

Speaking on Thursday during an online webinar hosted by the International Renewable Energy Agency, Dan Jorgensen, minister for climate, energy and utilities for Denmark, said: “The science is clear. We cannot negotiate with nature.”

“There is no scenario in which we burn all the oil and gas that we can find and in which we stay below 2 degrees — and definitely not 1.5. It is just not possible, so we need to stop.”

They are simply inferior technologies by now. They weren’t inferior last century but, in this century, given the rise of all the other alternatives that we have, they have become inferior technologies.

Christiana Figueres

Former U.N. climate chief

Denmark pledged in December last year to end all future licensing rounds on oil and gas exploration in the North Sea and put a stop date of 2050 on oil and gas production. At that time, the relatively small European country was the largest oil producer in the European Union.

“On one hand, if you look at it, it is a huge thing to ask a country,” Jorgensen said, acknowledging the challenge of trying to persuade others to sign up to the alliance.

“What you are saying, like one of my political opponents did when I proposed this in Denmark, is: ‘So, basically you want us to say no to free money? You want us to stop pumping money out of the ground so that others can do it instead of us?'”

“And I had to say: Well, yes,” Jorgensen continued. “But it is for a good reason.”

Climate hypocrisy

Andrea Meza, environment and energy minister for Costa Rica, said on Thursday that some opposition political parties were pushing the country’s government to consider using oil and gas revenues to pay for their energy transition. “We are very clear that this is not the right pathway.”

Costa Rica, a Central American country of around 5 million people, has never extracted oil. What’s more, it is currently considering a bill to permanently ban fossil fuel exploration to ensure that no future government does so.

When asked during the same webinar why other countries would consider joining their initiative, Meza said that platforms such as the Beyond Oil and Gas Alliance need to exist to show others that it is possible.

“It is just one planet,” Meza said. “This is not about doing things in the right way in the internal part of our countries and selling … all of the old technologies outside of our borders. This is not fair.”

U.S. Secretary of State Antony Blinken (C), Costa Rica’s First Lady Claudia Dobles (L) and Costa Rican Minister of Environment and Energy Andrea Meza (R) are seen during the launch of the National Land Use, Land Cover, and Ecosystems Monitoring System (SIMOCUTE) in San Jose, on June 2, 2021.

EZEQUIEL BECERRA | AFP | Getty Images

Research published in the scientific journal Nature on Sept. 9 found that the vast majority of the world’s known fossil fuel reserves must be kept in the ground to have some hope of preventing the worst effects of climate change.

Separately, analysis published by Carbon Action Tracker on Wednesday, showed that none of the world’s major economies are currently on track to contain global heating to the Paris Agreement target of 1.5 degrees Celsius.

It follows a bombshell report from the influential, yet typically conservative, International Energy Agency earlier this year. The IEA concluded that there could be no new oil, gas or coal development if the world was to reach net zero fossil fuel emissions by 2050.

Environmental activists and Native Americans march to the construction site for the Line 3 oil pipeline near Palisade, Minnesota on January 9, 2021. Line 3 is an oil sands pipeline which runs from Hardisty, Alberta, Canada to Superior, Wisconsin in the United States.

KEREM YUCEL | AFP | Getty Images

Denmark’s Jorgensen said it would be “impolite” to name specific countries, but described it as a “paradox” that many governments were touting their commitment to net zero by 2050 while also quietly planning to extract oil and gas to sell to others. These countries include the U.S., Canada, Norway and the U.K., among others.

“You are not going to burn it yourself and you think others shouldn’t either, but you will make money selling oil to other countries? It doesn’t make sense,” he added.

Jorgensen said he did not want to dismiss the fact that signing up to the yet-to-be-revealed pledges of the Beyond Oil and Gas Alliance would come with difficult economic choices, particularly those heavily reliant on oil and gas. “But, it is the tough questions that we need to ask ourselves.”

“Can we live with a future where we don’t do this? I don’t think that we can.”

‘Inferior technologies’

Speaking alongside Denmark’s Jorgensen and Costa Rica’s Meza on Thursday, former U.N. climate chief Christiana Figueres addressed the urgent need for governments to dramatically scale down fossil fuel use. She cited air pollution, caused mostly by the burning of fossil fuels, which kills an estimated 7 million people worldwide every year.

Figueres also stressed that the economic imperatives for moving beyond oil and gas were compelling. “They are simply inferior technologies by now. They weren’t inferior last century but, in this century, given the rise of all the other alternatives that we have, they have become inferior technologies.”

Pipes for the Baltic Pipe gas pipeline are stacked at Houstrup Strand, near Noerre Nebel, Jutland, Denmark, on February 23, 2021. The Baltic Pipe gas pipeline, which is to come ashore at Esbjerg, on the west coast of the Jutland peninsula, will transport ten billion cubic meters of gas every year from the Norwegian gas fields in the North Sea through Denmark and to Poland.

JOHN RANDERIS HANSEN | AFP | Getty Images

An increasing number of cities banning the use of fossil fuel burning vehicles was likely to usher in “the demise of oil,” Figueres said. The end of gas production may take longer given that it is recognized as a transition fuel, she said, but still not more than 20 to 30 years as there are alternative fuels coming on the market, such as hydrogen and ammonia, “that will be able to compete favorably.”

In summary, Figueres said the economic case, “pounding” litigation in Europe and elsewhere and a social license for these fuels that has been “completely lost,” showed that there is no more space for oil and gas production.

Environment

Genesis wants a bigger slice of the US luxury market with new EVs en route

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49 mins ago

November 22, 2024

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Genesis wants a bigger slice of the US luxury market with new EVs en route

If you haven’t noticed, Genesis is quickly making a name for itself in the US. The luxury automaker now has 60 sales outlets as it expands into new US states. With new EVs launching, Genesis is eyeing a bigger share of the US luxury market.

Hyundai Motor Group’s Genesis brand is quietly emerging as a powerhouse in the US luxury market. Genesis marked its entry into the luxury segment in 2008 as a Hyundai-branded model.

In 2015, Hyundai announced Genesis would become an independent luxury brand. Since launching its first vehicle in the US, the luxury brand’s sales have surged from 7,000 in 2016 to over 69,000 last year. It even outsold Nissan’s Infiniti.

According to Genesis, this is just the start. The Korean luxury brand wants an even bigger slice of the market as it eyes rivals like Porsche.

A big reason behind the brand’s confidence is its new lineup of stylishly electric models. Genesis sells three EVs in the US: The GV60, Electrified G80, and Electrified GV70.

After introducing the Electrified GV70 just last year, the electric SUV is already Genesis’ top-selling EV in the US. According to Kelley Blue Book, Genesis sold 2,343 electric GV70 models in the US through September.

Genesis-Electrified-GV70-NACS — 2026 Genesis Electrified GV70 update (Source: Genesis)

Altogether, the luxury brand’s EV sales reached over 4,600 through the first nine months of 2024, topping Porsche (4,291) and Volvo (3,644).

Genesis made a statement at the LA Auto Show, unveiling the updated 2026 Electrified GV70. The luxury electric SUV now includes more range and an NACS port so drivers can charge at Tesla Superchargers. It will go on sale in the first half of 2025.

Genesis-US-luxury-EV-market — Genesis at the 2024 LA Auto Show (Source: Hyundai Motor Group)

Meanwhile, Genesis showcased its new GV60 Magma Concept at the event, its first dedicated high-performance EV. The brand sees its Magma performance brand rivaling that of Geman luxury brands like Mercedes AMG, BMW M, and Audi RS.

The Genesis GV60 Magma EV will launch next year, spearheading the brand’s “expansion into the realm of high-performance vehicles.”

Genesis enhanced the battery and motor while fine-tuning the chassis, thermodynamics, and profile for more power and efficiency.

It also features an aggressive new design, sitting much lower and wider than the current GV60 model. Genesis added a Magma-exclusive sound system to give it a sports car-like feel in the cockpit.

Genesis-G80-EV-Magma — Genesis G80 EV Magma Concept (Source: Genesis)

In April, we got our first look at the G80 EV Magma concept, which could be a potential challenger to Tesla’s Model S Plaid and the Porsche Taycan GT Turbo.

The luxury brand is expected to launch its flagship electric three-row SUV next year, the GV90. Genesis previewed the ultra-luxury EV in March after unveiling the Neolun concept.

Genesis now has 60 sales bases in the US, with new stores in Washington, Minnesota, New York, and Florida. It’s also building 30 in Canada as it expands its presence in the North American luxury market.

The luxury brand is opening a new dedicated design center in California. The “Genesis Design California” will open in the first half of 2025 as it builds out its US network.

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Environment

No, BYD is not taking over NIO as fake rumors claim

Published

3 hours ago

November 22, 2024

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No, BYD is not taking over NIO as fake rumors claim

A rumor spreading like wildfire on social media claims BYD will be taking over NIO (NYSE: NIO) as the EV giant gobbles up market share in China. The rumor was posted by a suspected BYD employee, but NIO is denying the claim.

BYD acquiring NIO would be a massive move as China’s leading EV maker continues to dominate the market. But that’s not going to happen.

According to CnEVPost, NIO’s assistant vice president for branding and communications, Ma Lin, denied the rumors that BYD is taking over the company on Friday.

Ma posted a screenshot on social media asking BYD’s general manager of branding and PR, Li Yunfei if the person who posted the fake rumor was an employee.

Earlier today, the suspected employee claimed BYD and NIO were setting up a joint venture. In a Weibo post, the suspect said BYD would have majority control of the partnership with a 51% share while NIO would get the remaining 49% ownership.

Ma told Li that if it was, in fact, a BYD employee, he needed to issue an official clarification and apologize. If not, they can get the police involved together. Li also denied the rumors, saying the claim was seriously untrue.

BYD-taking-over-NIO — NIO Onvo L60 electric SUV at the 2024 Guangzhou International Auto Show (Source: NIO Onvo)

NIO denies rumors that BYD is taking over the company

This is not the first time rumors surfaced that BYD will be taking over NIO, but because it is a suspected employee, the post has garnered more attention.

BYD is on a major hiring spree as it ramps up production to meet the higher demand. The EV giant now has over 900,000 employees, making it by far the largest A-share listed company in China.

After selling over 500,000 vehicles for the first time in a single month in October, BYD’s surge is heating up as the EV giant expands overseas for growth.

October was BYD’s fifth consecutive record sales month as it closes in on auto leaders like Ford in global deliveries.

NIO is also gaining momentum, with sales topping the 20,000 mark for the sixth straight month in October. With output of its new lower-priced Onvo L60 electric SUV ramping up, NIO expects to continue seeing higher demand.

Ma said on Friday that NIO’s “recent situation is quite good.” The company’s head of PR added, “Cash flow turned positive in the third quarter, gross profit improved in October, earning an extra RMB 100 million, and Onvo (deliveries) will exceed 10,000 in December.”

NIO is launching its third brand, Firefly, with deliveries kicking off in the first half of 2025. The company expects sales to double next year as it works to become profitable by 2026.

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Environment

Hyundai recalls more than 145,000 EVs

Published

5 hours ago

November 22, 2024

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Hyundai Motors is recalling 145,235 EVs and other “electrified” vehicles in the US, citing concerns about a loss of driving power, the National Highway Traffic Safety Administration (NHTSA) said on Friday.

The NHTSA announced this morning that the recall affects selected IONIQ 5 and IONIQ 6 EVs, as well as certain luxury Genesis models, including the GV60, GV70, and G80 electrified variants, from the 2022-2025 model years, Reuters reported.

2025-Hyundai-IONIQ-5-prices — 2025 Hyundai IONIQ 5 (Source: Hyundai)

It looks like the issue stems from “the integrated charging control units in these vehicles, which may become damaged and fail to charge the 12-volt battery. This malfunction could lead to a complete loss of drive power, posing safety risks for drivers,” the NHTSA stated.

If you’re an owner of one of these Hyundai models dating 2022-2025, stay tuned. Hyundai has not yet provided a timeline as to when affected vehicles will be repaired.

To make that happen, the company’s dealers will inspect and replace the charging unit and its fuse if necessary, NHTSA said. Free of charge, of course.

Importantly, no crashes, injuries, fatalities, or fires due to this issue have been reported in the US, Hyundai reported.

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