J2. Fossil Fuel Industry

FOR IMMEDIATE RELEASE

Contact: 

Nicole Rodel, nicole@priceofoil.org  

Shaye Skiff, kskiff@foe.org

 

Handful of governments block clean energy transition with billions in international finance for fossil fuels 

New research shows Japan, Korea, and US among worst fossil fuel financiers

• New report shows that between 2020 and 2022, G20 governments and the multilateral development banks (MDBs) provided $142 billion in international public finance for fossil fuels, almost 1.4 times their support for clean energy in the same period ($104 billion).  
• The top fossil fuel financiers were Canada ($10.9 billion per year), Korea ($10 billion per year), and Japan ($6.9 billion per year). 
• 71% ($101 billion) of the $142 billion in fossil fuel spending will end in the next few years if governments fully uphold recent commitments including through the Clean Energy Transition Partnership (CETP) and G7. Most signatories are already implementing these pledges, but the United States and Japan in particular are backsliding. 
• Just 8% of all G20 and MDB international finance for energy went to low-income countries. Of that, almost three-quarters were for fossil fuels. While the finance delivered virtually no energy access for communities in need, this argument is frequently used to justify continued fossil fuel finance.

9 April 2024 – Despite the biggest increase in G20 and Multilateral Development Bank (MDB) international finance for clean energy in 2022, a report published today reveals a handful of bad actors are blocking a just transition to renewable energy with outsized financial support for fossil fuels. 

The new report, Public Enemies: Assessing MDB and G20 international finance institutions’ energy finance by Oil Change International and Friends of the Earth United States, and endorsed by 23 other civil society organizations [1], highlights an alarming trend in international energy finance. G20 and MDB international public finance for energy between 2020 and 2022 poured fuel on the fire by contributing a staggering $142 billion towards fossil fuels, while only $104 billion supported clean energy projects. The report has been released alongside updated energy finance data on energyfinance.org. 

To limit warming to 1.5°C in line with international climate agreements, 60% of already-developed fossil fuel reserves must stay in the ground. In light of these limits, the IEA has sent a clear message that there should not be any new oil and gas field or LNG investments – public or private – beyond what was already committed as of 2021. 

The findings reveal that between 2020 and 2022 the wealthiest G20 nations are the primary culprits behind continued investments in fossil fuels, with Canada, Korea, and Japan as the worst offenders. 

• Canada: As of the end of 2022, Canada fulfilled their commitment to the Clean Energy Transition Partnership (CETP) to end international finance for fossil fuels, and is under pressure to meet a separate pledge to end their much larger domestic ECA fossil fuel finance in 2024. 
• Japan: Despite being a signatory to the near identical G7 commitment to phase out international public finance for fossil fuels, Japan has yet to take steps to put commitments into action. Loopholes in Japan’s policy continue to enable fossil fuel financing, further exacerbating the climate crisis. 
• Korea: Korea is the only major fossil financier that has yet to put in place any policies to end its oil and gas support. 

The report also highlights where there is momentum to shift public finance out of fossil fuels. It shows that coal exclusion policies have worked to nearly eliminate all international public finance for coal. Seven G20 countries are also signatories to the CETP, and pledged to end their international public finance for fossil fuels by the end of 2022 and prioritise support fully towards the clean energy transition. While many signatories have followed through on their commitment, a few CETP signatories are undermining this progress, including the United States, Italy, and Germany, by continuing to provide billions of dollars to fossil fuel projects well past the end of 2022 deadline. If countries honor their existing commitments to end not only coal finance but also oil and gas finance, including their CETP commitment to negotiate an oil and gas ban at the OECD, it will shift $33.5 billion annually out of fossil fuels. 

Claire O’Manique, Public Finance Analyst at Oil Change International, said: 

“While rich countries continue to drag their feet and claim they can’t afford to fund a globally just energy transition, countries like Canada, Korea, Japan, and the US appear to have no shortage of public funds for climate-wrecking fossil fuels. We must continue to hold wealthy countries accountable for their role in funding the climate crisis, and demand they move first and fastest on a fossil fuel phaseout, to stop funding fossil fuels, and that they pay their fair share of a globally just transition, loss and damage and adaptation finance.” 

Kate DeAngelis, Senior International Finance Program Manager at Friend of the Earth United States, said: 

“While international public finance could be a catalyst for the just energy transition, government leaders are failing to use it to deliver clean energy solutions where they are most needed. As this report highlights less than 10% of the G20 and major multilateral development bank financing is even reaching low-income countries where energy access needs are greatest. Even worse, a shocking three quarters of that finance is being channeled to climate-wrecking fossil fuel projects that deliver virtually no energy access to communities, and instead, lock in more pollution, climate-wrecking emissions, and devastation.”

Peter Bosip, executive director of the Centre for Environmental Law & Community Rights (CELCOR) said: 

“International public finance streamed into Papua New Guinea over a decade ago to fund a disastrous liquefied natural gas project. Despite the human rights abuses and environmental destruction, these same institutions are set to support a related gas project that is likely to have similarly deleterious effects. This report demonstrates that Papua New Guinea is not alone – international public finance is still providing billions every year for fossil fuels. It is time for public finance institutions to learn some lessons from past mistakes and refuse to support Papua LNG and other fossil fuel projects.”

Makiko Arima, Senior Finance Campaigner at Oil Change International said: 

“Japan is derailing the transition to renewable energy across Asia and globally. Despite its G7 commitment to end fossil fuel financing, its public financial institutions like the Japan Bank for International Cooperation (JBIC) continue to support new fossil fuel projects, including the Scarborough gas field in Australia and gas power plants in Mexico. JBIC is currently investigating a claim that it failed to follow its social and environmental safeguards in developing the Philippines’ first LNG import terminal in Batangas. Japan needs to put people and planet over profit, and shift its finances from fossil fuels to renewables.”

###

Regional press releases on this report are available for the United States, Canada, Japan, Korea, and Italy.

Notes:

[1] You can download the report here. 

This report is an update to the November 2022 Report, At A Crossroads: Assessing G20 and MDB International Energy Finance Ahead of Stop Funding Fossils Pledge Deadline, which looked at G20 country and MDB traceable international public finance for fossil fuels from 2019-2021 and found they are still backing at least USD 55 billion per year in oil, gas, and coal projects.

• The Clean Energy Transition Partnership (CETP) was launched at the 2021 UN COP26 climate conference in Glasgow. The 41 signatories (full list here) aim to “end new direct public support for the international unabated fossil fuel energy sector by the end of 2022” and instead “prioritise our support fully towards the clean energy transition.” 
• This implementation tracker outlines country-level progress on the CETP, and is  updated on a regular basis.
• This fossil fuel finance violations tracker outlines the laggard countries who have broken their commitment to the CETP, namely the U.S., Italy, and Germany, and continued to finance fossil fuel projects with public money in 2023
• The IPCC’s AR6 report highlights public finance for fossil fuels as ‘severely misaligned’ with reaching the Paris goals, but that if shifted, it could play a critical role in closing the mitigation finance gap, enabling emission reductions and a just transition. More background on the role international public finance plays in shaping energy systems is available in this Oil Change International briefing.
• A legal opinion by Professor Jorge E Viñuales from the University of Cambridge and Barrister Kate Cook of Matrix Chambers argues that governments and public finance institutions that continue to finance fossil fuel infrastructure are potentially at risk of climate litigation.

The post Handful of governments block clean energy transition with billions in international finance for fossil fuels appeared first on Oil Change International.

DOWNLOAD THE REPORT

Published by Oil Change International & Friends of the Earth U.S.

April 2024

Download the report. 

Read the press release.

This new report, “Public Enemies: Assessing MDB and G20 international finance institutions’ energy finance” looks at G20 country and MDB traceable international public finance for fossil fuels from 2020-2022 and finds they are still backing at least USD 47 billion per year in oil, gas, and coal projects.

The findings reveal that the wealthiest G20 nations are the primary culprits behind continued investments in fossil fuels, with Canada, Korea, and Japan emerging as the worst offenders. The report also highlights where there has been momentum to end international public finance for fossil fuels, finding that if countries keep their existing commitments to end not only coal finance but also oil and gas finance, it would shift $26 billion annually out of fossil fuels by the end of 2024.

The report analyzes finance from OCI’s open-access database, Public Finance for Energy Database (energyfinance.org), which has been updated alongside the release of this report. It tracks financial flows to fossil fuels and clean energy from G20 bilateral development finance institutions (DFIs), export credit agencies (ECAs), and the multilateral development banks (MDBs). 

Download the report.

SUMMARY

Our analysis shows that:

Significant continued fossil fuel support by a handful of countries is blocking a globally just and equitable transition to clean energy.

• Fossil fuels received at least $47 billion annually between 2020 and 2022. 
• The vast majority of fossil fuel finance is flowing to gas – 54% of known international public finance for fossil fuels flowed to fossil gas, and a further 32% to mixed oil and gas projects between 2020 and 2022. This matches our analysis of these institutions’ fossil fuel exclusion policies, where they exist, which have loopholes that allow for ongoing fossil gas support. 
• The largest share (46%) of G20 and MDB fossil finance between 2020 and 2022 supported midstream transportation and processing projects. This includes finance for projects like the Trans Mountain pipeline in Canada, Mozambique LNG, and Korean built LNG carriers. These are some of the most expensive types of projects in the oil and gas supply chain. 
• ECAs were the worst international public finance actors, accounting for 65% of all known fossil fuel activity between 2020 and 2022. 
• The World Bank Group (WBG) provided the most direct finance for fossil fuels of any MDB at $1.2 billion a year on average. At least 68% of this was for fossil gas. 

A small group of worst actors hold an outsized responsibility, while others are working together to shift finance from fossil fuels to clean energy.

• The top three fossil fuel financiers between 2020 and 2022 were: Canada ($10.9 Billion), Korea ($10 Billion), Japan ($6.9 Billion).
  • At the end of 2022 Canada followed through on their commitment to end their international public finance, and is under pressure to meet a separate pledge to end their much larger domestic ECA fossil fuel finance in 2024. 
  • Korea has yet to make any commitments to end their international public finance for fossil fuels.
  • While Japan is part of a G7 Commitment to end their international public finance for fossil fuels, their current policy includes three circumstances where they can continue financing fossil fuel projects. These have served as loopholes for Japan to continue its fossil fuel financing.
• Coal exclusion policies have worked to nearly eliminate international public finance for coal. Support for coal dropped from an annual average of $10 billion from 2017 to 2019 to $2 billion a year from 2020 to 2022. This decrease can be attributed to coal exclusion policies that came into effect in 2021, including China’s coal power policy and the Organisation for Economic Cooperation and Development (OECD) ECA Coal Agreement. Now these institutions must do the same and follow through on commitments to end their oil and gas finance.
• There is momentum to shift international direct finance out of fossil fuels. If countries and institutions honor existing commitments, 55% of this fossil fuel support will end by the end of 2024. 
  • Eight out of the sixteen signatories to the Clean Energy Transition Partnership with significant amounts of international energy finance have put in place policies that end their international fossil fuel support. 
• However, a few laggards are undermining this progress. 
  • The U.S. is the single biggest violator of the CETP pledge, approving the most fossil fuel projects of any signatory for a total of almost $2.3 billion.
  • Italy and Germany have released policies that fall short of the commitment and have big loopholes that are allowing ongoing fossil gas support.
• The international public finance institutions of Global North countries invested 58 times more in climate wrecking fossil fuel projects each year 2020-2022 than in the loss and damage fund created at COP28.

Clean energy finance is still too low, and not flowing to the countries that need it most. 

• Clean energy received almost $34 billion annually between 2020 and 2022. This is the highest annual average for clean finance since our dataset began in 2013, but is far below the estimates of the quantity and quality of public clean energy finance required to limit warming to 1.5°C.
• The top clean energy financiers between 2020 and 2022 were: France ($2.7 billion), Japan ($2.3 billion), and Germany ($2.3 billion).
• The majority of clean energy finance is also not going where it is most needed, flowing overwhelmingly to wealthy countries. Just 3% of all clean energy finance between 2020 and 2022 went to low-income countries. Only 18% flowed to lower-middle-income countries.

We urgently need public finance institutions’ policies, priorities, and governance to push towards a globally just energy transition. As part of doing their fair share to limit warming to 1.5°C and ensure a livable future, G20 governments and the MDBs they control must:

• Implement whole-of-government policies (or whole-of-institution policies in the case of MDBs) to immediately end new public direct and indirect finance for oil, gas, and coal projects. These policies must not include loopholes for technologies including carbon capture and storage (CCS), fossil-based hydrogen, ammonia co-firing, fossil gas, and other dangerous distractions.
• Dramatically scale up clean energy finance on fair terms, especially for transformative energy democracy and environmental justice priorities where need is greatest. This finance must be delivered on debt sustainable terms, and implemented with safeguards and standards to ensure all projects (a) uphold and protect human rights, including free, prior and informed consent; (b) are implemented with democratic and participatory processes; and (c) ensure the sustainable use of land, water and ecosystems.
• Reform their public reporting to ensure it is transparent and timely.
• Provide their fair share of debt cancellation, climate finance and loss and damage support to countries in the Global South.
• Work towards fair multilateral monetary, trade, tax, debt, and financial regulation rules that are aligned with a safe 1.5°C climate pathway.

Read the full report. 

The post Public Enemies: Assessing MDB and G20 international finance institutions’ energy finance appeared first on Oil Change International.

Posted by John Donovan 8 April 2024

In a move that has charity workers choking on their avocado toast, Shell’s new top dog, Wael Sawan, has snagged a staggering £8 million in his first year at the helm, leaving many wondering if he’s moonlighting as a magician pulling money out of thin air.

While most folks are counting pennies at the pump, Sawan is raking in the cash like it’s going out of style, leaving pressure groups frothing at the mouth faster than you can say “climate crisis.”

Jonathan Noronha-Gant of Global Witness didn’t hold back, declaring the payday a “bitter pill to swallow for the millions of workers living with the high costs of energy.” You tell ’em, Jonathan!

But wait, there’s more! Shell, never one to shy away from a bit of controversy, decided to toss its climate pledges into the recycling bin faster than you can say “greenwashing.”

They’ve dialed down their “net carbon intensity” reduction goals from a modest 45% to a paltry 15-20% by 2030. Why the change of heart, you ask? Well, according to Shell, it’s all about that good ol’ uncertainty in the energy transition. Because who needs ambitious climate targets when you can focus on “value over volume,” right?

And in case you thought BP was going to let Shell hog the limelight, think again. BP’s big cheese, Murray Auchincloss, waltzed away with a cheeky £8 million last year, proving once again that the top brass in the energy world are swimming in cash faster than you can say “fossil fuel frenzy.”

Andrew Speke of the High Pay Centre didn’t mince his words, accusing Shell of prioritizing “the enrichment of their executives and shareholders” over, you know, saving the planet. But fear not, Andrew, for surely reforming company law will be as easy as convincing a polar bear to swap its fur coat for a Speedo.

So there you have it, folks. While the world burns and wallets whimper, Shell’s bosses are laughing all the way to the bank. Because when it comes to prioritising profits over the planet, they’ve mastered the art of the shell game.

Disclaimer: Welcome to our platform! Before you delve into the content, please take a moment to review this disclaimer. This platform operates as a non-commercial, advert-free, and subscription-free space. We do not accept donations and aim to provide information to our readers free of charge. Our content may incorporate information generated by Artificial Intelligence (AI) and various other technological means. Additionally, we may draw from sources such as Wikipedia and other published materials. It’s important to note that the articles presented on this platform may include satirical adaptations derived from previously published sources. While we strive to maintain factual accuracy, we infuse elements of satire to engage and entertain our audience. Should any individual or entity find inaccuracies in our content, we encourage them to notify us promptly for rectification. We value accuracy and aim to address any discrepancies swiftly. Readers are advised to independently verify all information for accuracy and completeness. Any actions taken based on the content provided on our platform are at your own risk. Shell’s Boss Bags £8m: “Let Them Eat Carbon Intensity Reductions” was first posted on April 8, 2024 at 8:39 pm.
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Regional natural gas forward prices advanced during the March 28-April 3 trading period as the start of the spring injection season found market bulls searching for signs of green shoots after a bitter winter.

May fixed prices at Henry Hub rallied 12.1 cents to $1.845/MMBtu, setting the pace for similar front-month gains across much of the Lower 48, NGI’s Forward Look data show.

Working Down The Storage Glut

With the winter that wasn’t officially in the books, the market can shift its attention to the injection season. 

Pricing dynamics across the curve reflect a market caught between an exceptionally mild winter and rosier expectations for demand heading into 2025. At $1.60-plus, the May/December spread at the start of April was as high as it’s been in at least a decade, recent Forward Look data show.

Fixed prices for December 2024 delivery at Henry Hub rallied 8.6 cents during the March 28-April 3 trading period to average $3.479.

[Get Better Intel: Where are natural gas prices in Canada heading in the next few years? NGI’s Forward Look now includes Westcoast Station 2! Don’t delay in getting critical natural gas price data. Request a trial now.]

As of March 29, Lower 48 storage stood at 2,259 Bcf, still 633 Bcf above the five-year average, according to the U.S. Energy Information Administration (EIA). The last time storage was this high exiting the withdrawal season was in 2016, EIA data show. 

Analysts at Mobius Risk Group recently pegged end-of-withdrawal storage at around 2.26 Tcf, which would leave the market “just under 1.8 Tcf of spare capacity to manage” between now and the end of October.

It’s still “far too early” to have any certainty around where inventories may sit at the end of injections, the analysts noted.

Estimates for the end-October exit level have begun to “show a wider variance, as well as a trend lower as production levels have sharply declined,” the Mobius analysts said. “Just a few short months ago, the majority of estimates would have ranged from 4-4.3 Tcf, and we now see a significant number” of estimates below 4 Tcf.

The Mobius analysts pointed to the cumulative storage build for the month of April as “the key number to focus on” as the injection season gets underway.

“How the market comes out of the gates in the injection season will be critical” given the current excess inventories, they said. If the storage surplus doesn’t trend lower at a sufficient rate, it could mean “an elongated production-curtailing price environment.”

EBW Analytics Group analyst Eli Rubin similarly pointed to bringing down the inventory surplus as the prime focus for the market in the coming months.

“The overriding market narrative this spring will be the pace of reductions” in excess storage, both in the United States and Canada, Rubin said. “Near-term progress may falter into late April and May, however – raising risks of a relapse lower for natural gas.

“Further, if prices rise, the market will adjust by reducing demand via gas-to-coal switching and quickly returning withheld supply – quelling upside potential.”

Weather-driven demand may not offer much help in keeping April inventory injections lean.

Recent long-range forecasting pointed to light demand nationally amid “exceptionally comfortable” conditions for the Lower 48 heading into the back half of April, according to NatGasWeather.

Weather patterns starting in the upcoming week and continuing through April 20 appeared likely to see storage surpluses “stall or increase slightly” absent colder trends, the firm said.

“However, as soon as more bullish weather patterns work in concert with tighter production, surpluses will decrease in time,” NatGasWeather said. “The primary question remains when. Our modeling suggests gradual surplus reductions over the next two months, then with the opportunity to accelerate at a faster pace June through September as a hotter-than-normal summer impacts much of the U.S.”

West Texas Discounts

Meanwhile, for Permian Basin hubs, forward prices at the front of the curve did not see the same uplift during the March 28-April 3 period compared to the rest of the Lower 48.

Amid a combination of weak demand and pipeline constraints, negative spot prices have become routine for locations like Waha, El Paso Permian and Transwestern recently.

Front month fixed prices at the two hubs managed to stay in positive territory but came under downward pressure in recent trading, Forward Look data show.

Waha gave up 2.0 cents week/week to end at 21.7 cents, with May basis at the hub widening to minus-$1.624.

Permian natural gas markets could see more of the same “throughout the spring,” RBN Energy LLC analyst Lindsay Schneider said in a recent blog post.

“As we head into the shoulder months and gas demand…continues to sag, the pressure on Waha prices will continue,” Schneider said. “And that means that maintenance events – even small disruptions – could send Waha prices well below zero.”

The post Natural Gas Forwards Entering Shoulder Season in Search of Recovery appeared first on Natural Gas Intelligence

In this article, FracTracker’s Communications Intern Sarah Liez discusses the role of misinformation as an obstacle to clean energy reform and how it stalls initiatives aimed at transitioning to renewable sources of power.

The post The Power of Misinformation in Blocking Clean Energy Reform appeared first on FracTracker Alliance.

Electra, a startup backed by BHP, Bill Gates’s Breakthrough Energy and Amazon’s Climate Pledge Fund, among others, announced the commissioning of a pilot plant to produce metallic iron from already mined, high-impurity, commercially-stranded ores supplied by BHP.

According to the company, the technology used at the plant is aimed at accelerating the decarbonization, sustainability, and circularity of the ore-to-steel value chain.

Located in Boulder, Colorado, the plant processes a wide range of ores and the principal iron ore impurities like alumina and silica are selectively refined as co-products.

The facility is designed to produce clean iron in approximately 1-metre square plates, but capacity is being increased in a phased approach to validate modularity and high-volume commercial-scale production.

“With greater than 99% purity, Electra’s clean iron, combined with recycled scrap steel, offers the highest value-in-use for electric arc furnace (EAF) steelmakers, while reducing the capital intensity, cost, and waste across the value chain,” Electra’s CEO and co-founder, Sandeep Nijhawan, said in a media statement. “Clean iron produced from a wide variety of ore types is the key constraint to decarbonizing the steel industry sustainably. With support from our partners across the value chain, the pilot brings us closer to our goal of producing millions of tonnes of clean iron by the end of the decade.”

Tabbs Bay is east of Houston near Baytown and La Porte. 

State regulators came under intense scrutiny in 2021 when it was discovered that one-third of its leadership lived out of state.

More than half of the U.S. population lives within 50 miles of a coast, so offshore wind sites are close to electricity demand centers.

We are able to track who actually builds and owns a large portion of the nation’s renewable energy.

Colorless and odorless, methane is a potent greenhouse gas that traps 83 times more heat in the atmosphere over a 20-year period than an equivalent amount of carbon dioxide.

Posted by John Donovan 2 April 2024

In a move that could only be described as “bold,” Shell Oil has graciously gifted the world with its latest climate strategy, dubbed the “Shell Energy Transition Strategy 2024.” Oh, how we’ve been eagerly awaiting this gem from the fine folks who brought you oil spills and environmental devastation!

According to this masterpiece of corporate spin, Shell has decided to make a few tweaks to its climate goals. You know, nothing major. Just a slight downgrade of its 2030 target from a 20% reduction in net carbon intensity to a dazzling 15-20%. And who needs a target for 2035 anyway? Certainly not a titan of the fossil fuel industry like Shell.

But fear not, dear readers, for Shell’s revision is not a retreat from its environmental commitments. No, no, no. It’s actually a resounding endorsement of fossil fuels and a roadmap to their continued dominance in the energy landscape. Hooray for progress!

Let’s take a peek at Shell’s “four core beliefs,” shall we? First up, they’re doubling down on LNG production because apparently, liquefied natural gas is the answer to all our environmental woes. Who knew?

Next, they’re betting big on oil production, because why bother transitioning away from the very substance that’s driving us towards climate catastrophe when you can make a quick buck?

Oh, but it gets better. Shell is also a firm believer in the power of low carbon molecules and renewables. Translation: We’ll throw a bone to green energy as long as it doesn’t interfere with our bottom line.

And finally, brace yourselves for the pièce de résistance: Shell is banking on new carbon abatement and removal technologies to save the day. Because why bother actually reducing emissions when you can just invent some magical technology to suck them out of the atmosphere, right?

But wait, there’s more! Shell is absolutely giddy about the role of natural gas in the power sector. Forget about pesky renewables, folks. Natural gas is where it’s at. Who needs clean energy when you can have… slightly less dirty energy?

And let’s not forget their ambitious goal of becoming a “net zero emission energy business by 2050.” It’s a goal so lofty, so aspirational, that it’s almost laughable. But hey, who are we to rain on Shell’s parade? If they want to dream big while they continue to plunder the planet, who are we to judge?

So, dear readers, as you reflect on Shell’s noble efforts to save the planet (or not), just remember: when it comes to corporate environmental goals, it’s all about the grand gestures and empty promises. And may all your carbon emissions be net zero by 2050.

DISCLAIMER: Content published on this non-commercial advert-free, no subscription, no donations platform may incorporate information generated by Artificial Intelligence (AI) and various other technological means, including translation and information published on Wikipedia. The articles presented may be satirical adaptations derived from one or more previously published sources, crafted to maintain factual accuracy while incorporating elements of satire. Individuals or entities mentioned in our articles are encouraged to notify us of any inaccuracies requiring rectification. Readers are advised to verify all information for accuracy and completeness independently. Any actions taken based on this content are at your own risk. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action based on any content published on our site. Shell Oil’s Climate Goals: A Masterclass in Greenwashing or Just a Load of Bull? was first posted on April 2, 2024 at 12:52 pm.
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Posted by John Donovan 2 April 2024

In a move that redefines chutzpah, Shell Plc is set to defend its rapacious environmental practices in a Dutch court, challenging a landmark ruling that dared to suggest the oil and gas behemoth should reduce its planet-murdering emissions.

The audacious district court ruling in 2021, which Shell now dares to contest, ordered the company to slash its greenhouse gas emissions by a measly 45% by 2030 from 2019 levels. Apparently, that’s the equivalent of asking Godzilla to cut back on his stomping by 45% to preserve Tokyo.

Shell, the poster child for environmental negligence, has the gall to argue that such an order lacks a “legal base.” They even have the nerve to claim that they can’t be held responsible for the emissions caused by the very products they gleefully peddle to the masses.

“We agree that the world needs urgent climate action, but we have a different view in how that goal should be achieved,” the company self-righteously proclaims on its website. Translation: “We agree the world is on fire, but we’re not going to stop selling matches.”

Meanwhile, Friends of the Earth Netherlands, the valiant David to Shell’s environmentally destructive Goliath, remains unyielding in its pursuit of climate justice. “The scientific basis on which we’ve founded our claims against Shell has only solidified,” declared the group’s lawyer, presumably while shaking his head at Shell’s breathtaking audacity.

Shell’s recent climate “commitments” include weakening its 2030 carbon reduction target and scrapping a 2035 objective, citing expectations for strong gas demand and uncertainty in the energy transition. In other words, they’re saying, “We’d rather keep swimming in oil money than give a damn about the planet.”

But fear not, dear Earthlings, for Shell assures us that it’s “not ignoring” the court order. They proudly trumpet their $10-15 billion investments in low-carbon energy solutions, conveniently omitting the fact that it’s a drop in the oil-slicked ocean compared to their overall profits.

Despite this legal wrangling, Shell insists its actions are in line with the ruling. They now aim for a whopping 15-20% reduction in net carbon intensity of its energy products by 2030, down from the previous target of… wait for it… 20%. Because when it comes to saving the planet, every decimal point counts, right?

As the court prepares for four days of hearings, one can’t help but wonder: will justice prevail, or will Shell continue to flaunt its disregard for the environment like a peacock in an oil spill? Either way, brace yourselves for more spineless corporate doublespeak and enough greenwashing to make Kermit the Frog blush.

And so, the battle rages on, with Shell clinging desperately to its fossil-fuelled empire while environmentalists scramble to salvage what’s left of our besieged planet. In this David versus Goliath struggle, the stakes couldn’t be higher. Let’s hope that reason prevails, and that Shell is finally held accountable for its crimes against the only home we have.

DISCLAIMER: Content published on this non-commercial advert-free platform may incorporate information generated by Artificial Intelligence (AI) and various other technological means, including translation and information published on Wikipedia. The articles presented may be satirical adaptations derived from one or more previously published sources, crafted to maintain factual accuracy while incorporating elements of satire. Individuals or entities mentioned in our articles are encouraged to notify us of any inaccuracies requiring rectification. Readers are advised to verify all information for accuracy and completeness independently. Any actions taken based on this content are at your own risk. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Shell Appeals Climate Ruling, Insists on Right to Trash the Planet Unabated was first posted on April 2, 2024 at 12:24 pm.
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Gold Fields (JSE, NYSE: GFI) has finally achieved first production at its Salares Norte gold mine in Chile, following years of development played by challenges including relocating a handful of endangered rodents, rocketing costs and technical delays.

The South African miner, which took 13 years to develop the project from exploration to production, said it poured its first gold-silver doré at Salares Norte on March 28.

The mine, which cost Gold Fields over $1 billion to build, is key to its goal of producing 2.8 million ounces of gold by 2025, it said. Production at Salares Norte is expected to reach about 250,000 ounces of gold this year, ramping up to full-year production of 580,000 ounces next year.

“We are incredibly excited to have reached this milestone and delivered first gold in line with the updated project schedule,” chief executive Mike Fraser said in the statement. “To build a remote mine at 4,500m above sea level with winter temperatures as low as -20 degrees Celsius and amidst a global pandemic is an incredible feat,” he noted.

First gold pour at Salares Norte. (Image courtesy of Gold Fields.)

Anticipated annual average gold equivalent production for the initial five years of the mine’s life (2025 – 2029) is 485,000 ounces at an all-in sustaining cost (AIC) of $790 per ounce (in 2024 currency). 

The projected gold equivalent ounces produced until 2033, which covers the entire mine lifespan, is expected to be 360,000 ounces per year at an AIC of $820 per equivalent ounce.

First greenfield project in a decade

Salares Norte is the first greenfield project in the country in over a decade and, according to Gold Fields, it will create 900 permanent jobs and contribute nearly $800 million in direct and indirect taxes over its current 11-year productive life. 

In terms of innovation and environmental care, Salares Norte has incorporated critical new technologies, including filtered tailings, a technology that allows optimizing water use by recirculating over 86% of the resource. This is also a safer technology as it replaces a conventional tailings storage facility. 

The mine will also have a solar plant on site, which is expected to cut its annual carbon footprint by over 10,000 tonnes of CO2, Gold Fields said.

The company highlighted that over 26% of the mine’s employees are women, which is almost double the average of the Chilean mining industry.

In terms of women’s participation in the mining industry, Chile is better positioned than its neighbours and at the same level as the United States. (Image courtesy of CCM-Eleva Alliance Report. Click on it for full size)

Chile’s gold production peaked in 2000 at 54.1 tonnes, data from the country’s copper commission, Cochilco, shows. The nation, the no.1 copper producer and second-largest lithium producer after Australia, has dropped in the ranking of the world’s gold producing nations to the 23rd position as of December 2023, according to data from the World Gold Council.

This newsletter is also available in French and Spanish.

There are two reasons why I am excited about this month’s newsletter.

One – our actions over the last few weeks have directly resulted in major wins for climate solutions. In fact, the loss and damage fund petition you supported last month? Well, now rich countries have just appointed a board for the Fund, a much awaited step in the right direction.

And the second reason is a more celebratory one!

March is a special month dedicated to women. It gives us the well-awaited opportunity to underscore how women are at the forefront of the climate crises.

Head over to our Instagram page where we celebrate Women’s History Month in a 3-part video series. Photo Credit: 350.org

We know that women and marginalized communities face the brunt of climate impacts. Incredibly, it is these very women who are driving systemic change in climate action. From grassroots movements to boardrooms, they are pioneering innovative solutions and amplifying vulnerable voices. Across the globe, women are deeply connected to communities and environments. This connection fuels their determination to protect our planet for future generations. Women’s leadership isn’t just crucial, it is the essence of our climate action.

In that spirit, we dedicate this edition of Fossil Free News to our foremothers and female activists. Their legacy and brave work propels us forward in the fight against climate change.

Why don’t you join our Fossil Free mailing list for all the latest stories on climate organizing from around the world? Stories that matter. Campaigns that inspire. All delivered directly to you every month!

SIGN UP HERE

In Case You Missed It

Ensuring our Future

Since 2016, we’ve fiercely opposed the East African Crude Oil Pipeline (EACOP) due to its threats to communities and the environment. This month, we teamed up with global civil society and climate justice partners for a Global Week of Action, called Insure Our Future.

Together, we called on insurance giants like SINOSURE and China Re to stop funding this destructive fossil fuel pipeline. We organized demonstrations, workshops, and protests across Uganda, Tanzania, and the Democratic Republic of Congo in EACOP-affected areas. In solidarity, our activists in the US, the UK, and Japan also targeted major insurers such as Tokio Marine, AIG, and Probitas.

And the best news? Our efforts didn’t go unnoticed. Probitas 1492, a major insurance company, has now pledged not to insure EACOP and the West Cumbria Coal Mine (another fossil fuel project in the UK). Our collective efforts during the Global Week of Action made this victory possible. Onward to the next!

Navigating the Nuclear Hype

Nowadays, nuclear power is being marketed as a ‘miracle’ substitute for fossil fuels. At COP28, over 20 countries announced plans to triple nuclear energy output by 2050. We strongly oppose this.

The science is crystal clear: nuclear energy is a dangerous distraction. Building nuclear plants is expensive and time-consuming, and they create long-lasting environmental damage due to toxic waste.

Ironically, as climate change worsens, nuclear waste that was once buried will also resurface, causing significant harm to the environment, food supplies, and people’s lives in those regions.

11 March is the anniversary of the Fukushima Nuclear disaster in Japan which was set in motion by a tsunami and earthquake. This disaster, forcing the evacuation of over 25,000 people, is a tragic reminder of the devastating human cost of nuclear power.

We need to prioritize safe, democratic, and real renewable energy sources like solar and wind.

350 Pacific partner, Jo Jikum hosts Nuclear Victims Remembrance Day Art Exhibition on 29 Feb – 2 March in the Marshall Islands, showcasing the deep impact of nuclear disasters on communities and ecosystems. Photo Credit: Jo Jikum

View Photo Essay

Celebrating Our True Climate Leaders

At 350, we’re all about honoring the inspiring leadership of women in the climate movement. We’re not just celebrating their contributions, we’re downright awestruck by them.

From blazing trails to safeguarding ancient wisdom, these women are the heart and soul of our planet’s protection. We thank our Indigenous sisters whose legacies are like roots grounding us in this fight. A shout out to our grassroots warriors too, who are silently but powerfully pushing for climate justice. Their voices? Absolutely indispensable.

In our quest for climate justice, women’s rights aren’t just a side issue – they’re woven into the fabric of our struggle. As our colleague Tamara Amalia wisely says, “We cannot extinguish the flames consuming our planet while silencing the voices of those who could help us douse them.”

Ready to see the true breadth of our climate movement? Look through the lens of these phenomenal women who are driving it globally:

Bangladesh

Fahida Sultana, a 21-year-old climate activist & founder of the Service For Human Being Organization (SHBO). She has dedicated her efforts to stopping the illegal brick kilns in her community. Photo credit: 350 

Japan

Miki Hiramatsu, local activist. She teaches climate crises 101 classes and engages in community initiatives aimed at mitigating climate change.                      Photo credit: Miki Hiramatsu

The United States

Mariel Nanasi, Head of New Energy Economy. She fiercely challenges utility giants, advocating for energy democracy and justice in New Mexico, USA. Photo credit: Searchlightnm.org

Colombia

Enesda Saavedra, leader and first female governor of the Yukpa indigenous people from the territory of Cesar and Megdelana, Colombia. She fights against the devastating effects of coal mines on her people.                                    Photo credit: ONIC

Ghana

Portia Adu-Mensah, National Coordinator of 350 G-ROC. Through community empowerment in the RE4C campaign, she works for a sustainable and equitable energy future in Ghana through grassroots engagement and policy advocacy. Photo credit: 350 G-ROC

The Pacific

Arianne Kassman, CEO of Transparency International PG & Melanesian Council Elder for Pacific Climate Warriors. Arianne brings indigenous wisdom and political acumen to the forefront of Papua New Guinea’s environmental and social justice movements. Photo credit: Jeff Tan

 

One to Watch

Women are also emerging as pivotal leaders amid Africa’s climate struggles. From rural to urban areas, they are pioneering positive change in the energy sector.

Our documentary ‘The Renewable Charge’ traces 350 G-ROC’s evolution from anti-coal activism to a community-driven push for renewables. See how renewables can transform lives across communities and regions. Experience the resilience along with the victories of women and youth in shaping just and inclusive energy sources in Ghana.

So grab some popcorn, kick back and turn on this documentary. May this film inspire you to spread word that renewables = a future that leaves no one behind…

Watch the film

Watch the film

 

Use Your Power

 

Our dear friend and climate activist, Hoang Thi Minh Hong, has been unjustly detained by the Vietnamese authorities since May 2023, facing false tax evasion charges. This is a tactic often used to silence critics of the country’s environmental policies.

Hoang Thi Minh Hong is a veteran activist whose work has had a huge impact on environmental outcomes in her home country of Vietnam and the global climate movement.

Vietnam owes its bold climate goals, like net zero emissions by 2050, to the relentless work of activists like Hong. But the crackdown on dissent must stop. Stand with us to #FreeHong and defend climate justice:

 

Add your signature

 

Skill Up Your Activism

Climate change has deep and far-reaching consequences. It impacts different populations differently. This is especially true for those who already face inequalities – women, the elderly, people with disabilities, and minority groups.

For inclusive climate solutions, we must understand how the climate crisis affects everyone, especially vulnerable communities.

This free online course is a wonderful resource to get started. You can take your climate activism one step further by exploring the links between gender, human rights, and climate change. Plus you will also learn practical tools to shape truly people-centered climate solutions!

 

Sign Up Now

Start learning

Quote of the month

“Empowering women is the single most important way to ensure effective climate action”

– Michelle Bachelet, UN High Commissioner for Human Rights.

IN OTHER NEWS

• South Africa: Climate Activists Refuse to Be Silenced By Arrests
• EU to finally exit ‘climate-wrecking’ energy treaty
• Utility company behind largest wildfire in Texas history

The post Fossil Free News – Our true climate leaders are women appeared first on 350.

This newsletter is also available in French and Spanish.

There are two reasons why I am excited about this month’s newsletter.

One – our actions over the last few weeks have directly resulted in major wins for climate solutions. In fact, the loss and damage fund petition you supported last month? Well, now rich countries have just appointed a board for the Fund, a much awaited step in the right direction.

And the second reason is a more celebratory one!

March is a special month dedicated to women. It gives us the well-awaited opportunity to underscore how women are at the forefront of the climate crises.

Head over to our Instagram page where we celebrate Women’s History Month in a 3-part video series. Photo Credit: 350.org

We know that women and marginalized communities face the brunt of climate impacts. Incredibly, it is these very women who are driving systemic change in climate action. From grassroots movements to boardrooms, they are pioneering innovative solutions and amplifying vulnerable voices. Across the globe, women are deeply connected to communities and environments. This connection fuels their determination to protect our planet for future generations. Women’s leadership isn’t just crucial, it is the essence of our climate action.

In that spirit, we dedicate this edition of Fossil Free News to our foremothers and female activists. Their legacy and brave work propels us forward in the fight against climate change.

Why don’t you join our Fossil Free mailing list for all the latest stories on climate organizing from around the world? Stories that matter. Campaigns that inspire. All delivered directly to you every month!

SIGN UP HERE

In Case You Missed It

Ensuring our Future

Since 2016, we’ve fiercely opposed the East African Crude Oil Pipeline (EACOP) due to its threats to communities and the environment. This month, we teamed up with global civil society and climate justice partners for a Global Week of Action, called Insure Our Future.

Together, we called on insurance giants like SINOSURE and China Re to stop funding this destructive fossil fuel pipeline. We organized demonstrations, workshops, and protests across Uganda, Tanzania, and the Democratic Republic of Congo in EACOP-affected areas. In solidarity, our activists in the US, the UK, and Japan also targeted major insurers such as Tokio Marine, AIG, and Probitas.

And the best news? Our efforts didn’t go unnoticed. Probitas 1492, a major insurance company, has now pledged not to insure EACOP and the West Cumbria Coal Mine (another fossil fuel project in the UK). Our collective efforts during the Global Week of Action made this victory possible. Onward to the next!

Navigating the Nuclear Hype

Nowadays, nuclear power is being marketed as a ‘miracle’ substitute for fossil fuels. At COP28, over 20 countries announced plans to triple nuclear energy output by 2050. We strongly oppose this.

The science is crystal clear: nuclear energy is a dangerous distraction. Building nuclear plants is expensive and time-consuming, and they create long-lasting environmental damage due to toxic waste.

Ironically, as climate change worsens, nuclear waste that was once buried will also resurface, causing significant harm to the environment, food supplies, and people’s lives in those regions.

11 March is the anniversary of the Fukushima Nuclear disaster in Japan which was set in motion by a tsunami and earthquake. This disaster, forcing the evacuation of over 25,000 people, is a tragic reminder of the devastating human cost of nuclear power.

We need to prioritize safe, democratic, and real renewable energy sources like solar and wind.

350 Pacific partner, Jo Jikum hosts Nuclear Victims Remembrance Day Art Exhibition on 29 Feb – 2 March in the Marshall Islands, showcasing the deep impact of nuclear disasters on communities and ecosystems. Photo Credit: Jo Jikum

View Photo Essay

Celebrating Our True Climate Leaders

At 350, we’re all about honoring the inspiring leadership of women in the climate movement. We’re not just celebrating their contributions, we’re downright awestruck by them.

From blazing trails to safeguarding ancient wisdom, these women are the heart and soul of our planet’s protection. We thank our Indigenous sisters whose legacies are like roots grounding us in this fight. A shout out to our grassroots warriors too, who are silently but powerfully pushing for climate justice. Their voices? Absolutely indispensable.

In our quest for climate justice, women’s rights aren’t just a side issue – they’re woven into the fabric of our struggle. As our colleague Tamara Amalia wisely says, “We cannot extinguish the flames consuming our planet while silencing the voices of those who could help us douse them.”

Ready to see the true breadth of our climate movement? Look through the lens of these phenomenal women who are driving it globally:

Bangladesh

Fahida Sultana, a 21-year-old climate activist & founder of the Service For Human Being Organization (SHBO). She has dedicated her efforts to stopping the illegal brick kilns in her community. Photo credit: 350 

Japan

Miki Hiramatsu, local activist. She teaches climate crises 101 classes and engages in community initiatives aimed at mitigating climate change.                      Photo credit: Miki Hiramatsu

The United States

Mariel Nanasi, Head of New Energy Economy. She fiercely challenges utility giants, advocating for energy democracy and justice in New Mexico, USA. Photo credit: Searchlightnm.org

Colombia

Enesda Saavedra, leader and first female governor of the Yukpa indigenous people from the territory of Cesar and Megdelana, Colombia. She fights against the devastating effects of coal mines on her people.                                    Photo credit: ONIC

Ghana

Portia Adu-Mensah, National Coordinator of 350 G-ROC. Through community empowerment in the RE4C campaign, she works for a sustainable and equitable energy future in Ghana through grassroots engagement and policy advocacy. Photo credit: 350 G-ROC

The Pacific

Arianne Kassman, CEO of Transparency International PG & Melanesian Council Elder for Pacific Climate Warriors. Arianne brings indigenous wisdom and political acumen to the forefront of Papua New Guinea’s environmental and social justice movements. Photo credit: Jeff Tan

 

One to Watch

Women are also emerging as pivotal leaders amid Africa’s climate struggles. From rural to urban areas, they are pioneering positive change in the energy sector.

Our documentary ‘The Renewable Charge’ traces 350 G-ROC’s evolution from anti-coal activism to a community-driven push for renewables. See how renewables can transform lives across communities and regions. Experience the resilience along with the victories of women and youth in shaping just and inclusive energy sources in Ghana.

So grab some popcorn, kick back and turn on this documentary. May this film inspire you to spread word that renewables = a future that leaves no one behind…

Watch the film

Watch the film

 

Use Your Power

 

Our dear friend and climate activist, Hoang Thi Minh Hong, has been unjustly detained by the Vietnamese authorities since May 2023, facing false tax evasion charges. This is a tactic often used to silence critics of the country’s environmental policies.

Hoang Thi Minh Hong is a veteran activist whose work has had a huge impact on environmental outcomes in her home country of Vietnam and the global climate movement.

Vietnam owes its bold climate goals, like net zero emissions by 2050, to the relentless work of activists like Hong. But the crackdown on dissent must stop. Stand with us to #FreeHong and defend climate justice:

 

Add your signature

 

Skill Up Your Activism

Climate change has deep and far-reaching consequences. It impacts different populations differently. This is especially true for those who already face inequalities – women, the elderly, people with disabilities, and minority groups.

For inclusive climate solutions, we must understand how the climate crisis affects everyone, especially vulnerable communities.

This free online course is a wonderful resource to get started. You can take your climate activism one step further by exploring the links between gender, human rights, and climate change. Plus you will also learn practical tools to shape truly people-centered climate solutions!

 

Sign Up Now

Start learning

Quote of the month

“Empowering women is the single most important way to ensure effective climate action”

– Michelle Bachelet, UN High Commissioner for Human Rights.

IN OTHER NEWS

• South Africa: Climate Activists Refuse to Be Silenced By Arrests
• EU to finally exit ‘climate-wrecking’ energy treaty
• Utility company behind largest wildfire in Texas history

The post Fossil Free News – Our true climate leaders are women appeared first on 350.

Spot gold gained 13% in 2023 and so far this year, is up 6%. Thursday March 28th, gold ended the day at $2,233.00 oz, a strong performance given the headwinds facing the precious metal.

These include a strong US dollar, positive real yields (Treasury yields minus inflation above zero), investors selling their gold ETFs, and inflation coming down from 40-year highs.

Demand is being driven by strong central bank buying, with developing nations in particular stocking up on bullion as insurance against having their foreign currency reserves frozen like happened to Russia after it invaded Ukraine; and geopolitical instability, with wars in Ukraine and Gaza still raging and there’s China’s positioning on Taiwan causing stress. Commercial shipping in the Red Sea continues to come under attack from Houthi rebels.

The gold price started to kick higher in October when market sentiment began pricing in three quarter-point rate cuts in 2024. This was confirmed at the Fed’s December meeting, and made even more explicit at the March 19-20 meeting that just took place.

Normally when gold rises, gold stocks follow, but since 2021, this has not been the case.

Large-cap gold mining stocks, represented by the VanEck Gold Miners ETF (GDX) are down 2% over the past year; junior gold miners’ stocks, represented by the VanEck Junior Gold Miners ETF (GDXJ) are down 1.17% over the same period.

Source: MarketWatch Source: MarketWatch

As the chart below shows, the PHLX Gold/Silver Index (XAU), a grouping of 30 gold and silver mining companies, is below where it was three years ago.

Notice what is happening here. The purple line representing XAU and the SPDR Gold ETF (GLD) in red converged twice, in March 2021, and a year later, in March 2022. Since then, GLD and XAU have been drifting apart — though recently ticking up in tandem.

The fact that gold stocks are lagging the gold price is a real thorn in the side of resource investors right now, and there has been no shortage of commentary on why this might be the case.

John Hathaway, senior portfolio manager at Sprott Asset Management, calls it “the greatest disconnect I’ve ever seen” in 25 years of tracking the metal. He blames crypto for diverting investment in gold mining stocks, but said the main culprit is gold ETFs, which have “cannibalized demand for gold mining equities”.

Tech stocks and more recently, those with a focus on artificial intelligence, have gobbled up a large amount of investment capital that previously went into gold equities. DRDGold CEO Niël Pretorius noted that shares are being disposed of despite the fact that they are trading at significantly better multiples than the technology stocks.

Argonaut PCF vice chairman Liam Twigger told Stockhead, Historically, junior explorers and developers might trade at $60 an ounce and as you make more progress, you get up to $200 an ounce. But these guys are under $20 an ounce and there’s a huge amount of leverage.”

Michael Gray, partner at Agentis Capital, says a lack of liquidity is the main problem facing the junior resource sector. Interviewed at the Vancouver Resource Investment Conference, he said, “The institutions are not coming down into the explorers and developers. Part of it is that they’re seeing redemptions, they have concentrated portfolios. Ten or 15 years ago they had 80 positions, now they’ve got 35, for some of the main resource funds in Canada and the US, so that’s part of it. They’re seeking to manage liquidity, and the juniors just don’t have liquidity.”

Back to the chart above comparing GLD, the fund representing physical gold, and XAU, the fund representing gold and silver miners. According to one analyst, the fact that gold has outperformed gold equities over the past three years by one of the largest margins in decades, is actually good news for gold-mining shares. How can this be?

Because historically, gold mining stocks have performed well following periods when they have significantly trailed bullion.

MarketWatch columnist Mark Hulbert analyzed what happened in the wake of large divergence between gold and gold-mining shares using data going back to the mid-1980s.

His two findings were that divergences are a short-term phenomenon and eventually resolve themselves; and that the resolution of divergences occurs primarily by the gold equities performing well or poorly.

Most importantly, Hulbert observes that, following periods in which shares have lagged gold, like they have over the past two years, the gold shares tend to perform well rather than gold performing poorly.

The divergence may have already begun. Hulbert points out that over the past month through March 20, the XAU index gain has been double that of gold, 12.5% versus 6.3%, respectively, leading to his bottom-line conclusion: If you want to bet on gold in coming weeks and months, you may want to favor gold-mining shares over gold bullion.

Gold analyst Adam Hamilton says gold stocks’ spring rally has proven their strongest seasonal one during gold’s modern bull-market years.

For example the GDX, while down 2% year on year, is up 22% since Feb. 28, while the GDXJ has gained 14.5%.

Remember that a big reason for the gold price doing so well of late is the expectation of three 0.25% interest rate reductions by the Fed, likely starting in June.

Jeff Clark, founder of TheGoldAdvisor.com, wanted to know what happens to gold and gold stocks during periods of monetary easing. Looking back at 11 such periods since the 1970s, Clark found that in nine of those periods, the gold price rose.

He also referenced above-mentioned John Hathaway of Sprott, who put out a report showing that gold stocks as a group climbed up to 400% during the last three rounds of Fed easing.

The last word on bullion versus gold stocks goes to Morningstar, which recently quoted the chief market strategist at Purpose Investments saying that investors may do better picking up gold stocks rather than the physical bullion. Basinger sees more opportunity on that front… “We did pivot some of our exposure from bullion into gold mining stocks, he acknowledges.” There is a greater margin of safety in stocks, he believes, and better upside potential.

At AOTH we believe not only is there huge potential upside in beaten-down gold and silver equities, but copper juniors as well.

For the first two weeks of March, copper rallied 4.1%, hitting its highest level since April 2023.

A couple of factors identified by us at AOTH indicate that 2024 will be a great year for copper. Most important is supply failing to keep up with demand. The second factor is a weakening of the US dollar if market expectations of monetary easing come to pass.

If the Fed lowers rates, the dollar will weaken, as it has done in the past during monetary easing. Commodity and precious metal prices have an inverse relationship with the dollar; a lower dollar typically means higher commodity/ gold and silver prices.

US Dollar Index: CNBC

Copper is used in a plethora of manufacturing processes, so commodity analysts keep a close eye on economic growth and manufacturing to get an idea in which direction copper prices are headed.

Global purchasing managers’ indices show that factory orders bottomed in January and are moving back up.

The JPMorgan Global Manufacturing PMI was a neutral 50 in January — anything above 50 reflects an expansion — halting a 16-month streak of sub-50 readings, and ticked up to 50.3 in February.

The S&P Global US Manufacturing PMI was 52.2 in February, with US manufacturing conditions improving at the fastest pace since July, 2022, and bettering January’s 50.7. The March numbers were even better, rising to a 21-month high of 52.5.

S&P Global US Manufacturing PMI. Source: Trading Economics

The two charts below are bullish on copper and commodities in general. The Global X Copper Miners ETF (COPX) has gained 24% since Feb. 13, with the Bloomberg Commodity Index advancing 3%.

Source: MarketWatch Source: MarketWatch

In China, there are too many smelters and not enough imported raw copper ore to feed them.

With treatment and refining charges (TC/RCs) near zero, smelters have been forced to cut production, reducing refined copper supply. According to Oilprice.com, in early March, 19 companies agreed to cuts via maintenance outages, lower output rates, and delays in new operations. 

Chinese smelter overcapacity is not the only reason for higher copper prices. In recent years, the mining sector has faced output constraints, plagued by protests, closures, water shortages and lower ore grades.

Nearly 600,000 tonnes of copper supply didn’t come to market last year due to the Panama government’s closure of Cobre Panama — a large copper mine that only recently came online — and a strike at the Las Bambas copper mine in Peru.

Anglo-American announced that its 2024 Chilean production would disappoint between 210,000 and 270,000 tonnes owing to head grade declines and logistical issues at its Los Bronces mine. (Goehring & Rozencwajg)

Chile’s copper output has been dented by a long-running drought in the country’s arid north. Codelco’s 2023 production was the lowest in 25 years.

Goldman Sachs has said it predicts a copper deficit of over half a million tonnes in 2024 due to mining disruptions. “The supply cuts reinforce our view that the copper market is entering a period of much clearer tightening,” analysts at the bank wrote, via Oilprice.com.

Benchmark Mineral Intelligence (BMI) forecasts global copper consumption to grow 3.5% to 28 million tonnes in 2024, and for demand to increase from 27 million tonnes in 2023 to 38 million tonnes in 2032, averaging 3.9% yearly growth.

According to the International Energy Agency (IEA), to keep the world on a path to net zero carbon emissions, copper must rise from 25 million tons to 35 million tons by 2030.

In 2023, mines only produced 22Mt globally.

Copper is essential to the energy transition from fossil fuels to electrification and decarbonization.

Along with the usual applications in construction wiring and plumbing, transportation, power transmission and communications, there is now added demand for copper in electric vehicles, EV charging stations, and renewable energy systems.

Conclusion

Copper is forecasted at $10,000 (below the $11,000t incentive price to build new mines) a ton by year’s end, from the current $8,860, and gold is seen hitting a new record-high $2,300 an ounce. 

Investing in juniors has historically been a good way to leverage rising copper and precious metals prices.

Juniors help the majors to replace the ore that they are constantly depleting in their operating mines, thereby helping to overcome the supply shortfall that is coming for several metals.

The case for copper, gold, silver, and all commodities, rests upon the US dollar. Once the Fed starts cutting interest rates, the dollar will weaken and the entire commodities complex will strengthen.

Of course, if the Fed doesn’t lower rates — either keeps them on pause or raises them, say due to a spike in inflation — our case falls apart. But inflation has come down substantially and despite current “stickiness”, we believe it will continue to move closer to the Fed’s 2% target, allowing the Fed to give borrowers some relief through lower rates.

John Hathway says the decline in gold stocks is linked to the popularity of gold ETFs which have “cannibalized” gold equities. Maybe so, but when the Fed starts lowering rates and gold/copper stocks as a basket rise, investors will feel more comfortable picking stocks again, especially with their outsized historical returns compared to “play it safe” ETFs.

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There’s an inherent conflict between the way mining investments are valued and environmental social and governance (ESG) principles, says mining veteran Douglas Silver. 

Net present value (NPV), the dominant metric used to evaluate mining investments, compares future cash flows to their equivalent in today’s dollars. NPV encourages companies to build the biggest possible mine and exploit it quickly. Environmental, social and governance (ESG) principles don’t factor in. 

But Silver, an inductee into both the Canadian Mining Hall of Fame and the U.S. National Hall of Fame, says there’s a metric that could incorporate both. 

Using the multiple on investment cash flow (MOIC) metric would support building smaller mines with a smaller environmental footprint but a longer life providing lasting benefits to communities, he says. 

“It would better align us with concepts behind ESG,” he told The Northern Miner’s Western Editor Henry Lazenby at this year’s Prospectors and Developers Association of Canada convention. 

Watch the full conversation below. 

Moreover, the letter condemns Shell’s recent strategic shift back toward increasing oil and gas production, deriding it as a profit-driven move that spells disaster for the planet.

Posted by John Donovan 1st April 2024

In a scathing open letter, a coalition of Hollywood A-listers led by Emma Thompson, Stephen Fry, and Benedict Cumberbatch have slammed Shell for its “callous and vindictive” legal crusade against Greenpeace. The letter, signed by a slew of prominent figures including Greta Thunberg and supported by environmental groups like Extinction Rebellion, lambasts Shell’s CEO Wael Sawan for orchestrating “one of the biggest attacks on Greenpeace’s right to protest in the organisation’s 53-year history.”

“You may believe that this lawsuit will dissuade all those justifiably alarmed by the impact your industry is having on the planet and the people who live on it from expressing their dissent through protest,” the letter reads. “On the contrary, it makes your company look callous and vindictive and will serve only to increase support for organisations like Greenpeace who seek to hold you to account.”

Dubbed the “Cousin Greg” lawsuit, reminiscent of a scene from HBO’s Succession where a character threatens legal action, Shell’s $2.1 million lawsuit against Greenpeace stems from a protest in which activists boarded a moving oil rig belonging to the company. Shell has defended its legal action as necessary for safety reasons, citing concerns over endangering lives at sea.

However, critics aren’t buying it. The open letter calls out Shell’s attempt to stifle dissent as “outrageous and frankly dangerous,” highlighting the broader implications of the company’s actions in the face of climate change. One defendant, Yeb Saño, a former climate negotiator for the Philippines, turned Greenpeace activist after his hometown was devastated by Typhoon Haiyan in 2013. The letter underscores the scientific consensus linking fossil fuel emissions to the intensification of such storms.

Moreover, the letter condemns Shell’s recent strategic shift back toward increasing oil and gas production, deriding it as a profit-driven move that spells disaster for the planet. This pivot, the letter argues, not only prolongs society’s dependence on expensive and environmentally harmful energy but also exacerbates the global climate crisis.

Shell’s lawsuit against Greenpeace is portrayed as emblematic of a broader trend in the oil industry, which appears increasingly defiant in the face of mounting pressure to decarbonize. As other oil giants cling to the status quo, the chorus of criticism against Shell suggests that the era of unbridled corporate greed may be nearing its end, one scathing letter at a time.

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The Côté gold mine has poured its first doré bar as the project advances toward commercial production. The mine, located 125 km southwest of Timmins, Ontario, is owned 60% and operated by Iamgold (TSX: IMG; NYSE: IAG), 40% owned by Sumitomo Metals Mining.

“I am delighted to announce that Côté gold achieved the milestone of first gold pour, less than 90 days since the start of the pre-commissioning activities,” said Renaud Adams, president and CEO of Iamgold.

“This achievement represents the culmination of over 15 million hours of work over four years of construction – an incredible effort for the team on the ground as the project cost to first gold remains in line with the updated budget estimate while maintaining a near impeccable safety record.”

Commissioning activities at Côté are progressing well with the crushing, high-pressure grinding rolls (HPGR), and processing circuits performing as expected, including power consumption. Commercial production will be declared in the third quarter with the goal of ending this year at a 90% throughput rate. On a 100% basis, guidance this year is to produce between 220,000 and 290,000 oz. of gold, assuming the remaining commissioning activities go according to plan.

This mine will be one of Canada’s largest gold producers with an 18-year mine life. During the first six years of operation, Côté gold output will be 495,000 oz., and over the life of the mine, it will average 365,000 oz. per year.

The Côté mine has proven and probable reserves of 234.6 million tonnes grading 1.01 g/t gold and containing 7.6 million oz. of gold. Reserves are included in measured and indicated resources, which are 444.8 million tonnes at 0.84 g/t and containing almost 2.3 million oz. of gold. There are also inferred resources of 60.6 million tonnes at 0.61 g/t and containing 714,000 oz. of gold.

Côté is the first gold mining project in North America designed and built for a fully automated haulage fleet.

“Further, this is just the beginning for Côté, as we believe the project is the start of what will ultimately turn into a new mining district that will be a mining hub for decades to come,” added Adams.

With Côté gold online, Iamgold now has three operating mines, including Essakane in Burkina Faso and Westwood in Quebec.