NewBase 06-January-2023 Energy News issue - 1580 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 06 January 2023 No. 1580 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE's ADNOC allocates $15 bln to decarbonisation projects
WAM + NewBase
ADNOC, a reliable and responsible provider of lower-carbon intensity energy, today announced a
bold new strategy to progress the world-scale decarbonisation of its operations.
The announcement follows the guidance by ADNOC's Board of Directors in November 2022 to
accelerate the delivery of its low-carbon growth strategy and the approval of its Net Zero by 2050
ambition.
This builds on ADNOC's strong track record as a leading lower-carbon intensity energy producer,
which includes its use of zero-carbon grid power, a commitment to zero flaring as part of routine
operations and deployment of the region's first carbon capture project at-scale.
Acting on the Board's guidance, ADNOC has allocated $15 billion (AED55 billion) to advance an
array of projects across its diversified value chain by 2030.
These projects will include investments in clean power, carbon capture and storage (CCS), further
electrification of its operations, energy efficiency and new measures to build on ADNOC's long-
standing policy of zero routine gas flaring. ADNOC will apply a rigorous commercial and
sustainability assessment to ensure that each project delivers lasting, tangible impact.
Throughout 2023, a suite of new projects and initiatives will be announced, including a first-of-its-
kind CCS project, innovative carbon removal technologies, investment in new, cleaner energy
solutions and strengthening of international partnerships.
Together with the recent formation of the ADNOC's new Low Carbon Solutions and International
Growth Directorate, these represent tangible and concrete action as the company reduces its
carbon intensity by 25% by 2030 and moves towards its Net Zero by 2050 ambition.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing
Director and Group CEO, said, "Under the directives of the UAE's wise leadership and the ADNOC
Board of Directors, ADNOC continues to take significant steps to make today's energy cleaner while
investing in the clean energies and new technologies of tomorrow.
Now, more than ever, the world needs a practical and responsible approach to the energy transition
that is both pro-growth and pro-climate, and ADNOC is delivering tangible actions in support of both
these goals. "Cementing our strong track record of responsible and reliable energy production,
ww.linkedin.com/in/khaled-al-awadi-80201019/

ADNOC will fast-track significant investments into landmark clean energy, low-carbon and
decarbonisation technology projects.
As we continue to future-proof our business, we invite technology and industry leaders to partner
with us, to collectively drive real and meaningful action that embraces the energy transition. This
strategic, multi-billion-dollar initiative underscores ADNOC's industry leadership as a leading global
provider of lower-carbon energy."
Building on ADNOC's Al Reyadah facility, which has the capacity to capture up to 800,000 tons of
CO2 per year, the company will announce plans to deploy technologies to capture, store and absorb
CO2 by leveraging the UAE's geological properties while preparing for its next major investment to
capture emissions from its Habshan gas processing facility.
Combined with ADNOC's planned expansion of its carbon capture capacity to 5 million tons per
annum (mtpa) by 2030, the UAE will be firmly established as a worldwide hub for carbon capture
expertise and innovation.
ADNOC's expansion of its new energy portfolio will largely be delivered through its stake in Masdar,
the UAE's clean energy powerhouse with over 20 gigawatts (GW) of clean energy today and plans
to increase its capacity to 100 GW by 2030. Masdar is also spearheading the UAE's drive to develop
a leading position in green hydrogen.
Since January 2022, ADNOC has received 100% of its grid power supply from Emirates Water and
Electricity Company's (EWEC) nuclear and solar energy sources, making it the first major company
in the industry to decarbonize its power at scale through a clean power agreement of this kind.
ADNOC also concluded a $3.8 billion deal to build a first-of-its-kind, sub-sea transmission network
in the MENA region, connecting ADNOC's offshore operations to the onshore power network, with
the potential to reduce ADNOC's offshore carbon footprint by up to 50%.
Building on the multi-billion capital investment in decarbonisation projects, ADNOC is working
closely with its international partners and stakeholders across the energy value chain to collaborate
on technology, best practices and policy to support and drive global decarbonisation efforts.

Egypt: United Oil and Gas completes drilling operations on the
ASW-1X exploration well…. Source: United Oil and Gas
AIM-listed United Oil & Gas has announced the completion of drilling operations on the ASW-1X
exploration well in the Abu Sennan licence, onshore Egypt. United holds a 22% non-operating
interest in the Abu Sennan licence, which is operated by Kuwait Energy Egypt.
The ASW-1X well was drilled to a Total Depth of 3,640 metres, 10 days ahead of schedule and
under budget. Although the well encountered net reservoir in the Abu Roash, Bahariya, and Alam
El Bueib targets, the logs did not indicate the presence of hydrocarbons.
The results from the ASW-1X will be integrated into our subsurface understanding of the Abu
Sennan licence, and the additional data used to help prioritise future drilling locations.
The well will now be plugged and abandoned and the Sino Tharwa-1 rig will be mobilised to drill the
first well of the 2023 drilling campaign. This will be the ASH-8 development well, targeting an
undrilled area of the ASH field.
Details of the 2023 drilling programme will be given within the trading statement due to be issued in
late January.
United Chief Executive Officer, Brian Larkin commented:
'Although the results of the ASW-1X well are disappointing, the JV partners are positive about the
remaining prospectivity on the licence and will continue to deliver the maximum value from it. We
are looking forward to the 2023 drilling campaign, which will initially focus on further development
of the asset by the drilling of ASH-8 followed by the ASD-3 well.
These development wells are targeting the most prolific areas of the Abu Sennan licence, to
maximise production before the drilling of at least one further exploration well in Abu Sennan later
in the year. We look forward to updating the market with further details of planned activity across
our portfolio later in January.'

RWE and Equinor Plan Norway-Germany Hydrogen Pipeline
Petra Sorge, Kari Lundgren
RWE AG and Equinor ASA plan to build a hydrogen pipeline between Germany and Norway,
German Economy Minister Robert Habeck said.
Habeck — also Germany’s vice chancellor — is in Oslo until Friday and will meet Norwegian Prime
Minister Jonas Gahr Støre. They’ll discuss deeper cooperation on hydrogen and carbon capture
technology, he said in an interview with TV channel ARD.
Germany wants to reduce its carbon emissions by 65% by 2030 from 1990 levels and reach climate
neutrality by 2045. Norway has set itself similar targets, which means building out floating offshore
wind, developing carbon capture and storage facilities and electrifying oil and gas platforms.
Germany — the continent’s industrial powerhouse — has also had to retool its energy policy since
the war in Ukraine forced it to end its long-standing dependence on Russian gas.
Both countries in March said they would consider building a hydrogen pipeline linking the nations.
Gassco AS, which operates gas pipelines connecting Norway with Europe, is currently conducting
a study to assess the feasibility of such a pipeline, which is expected to be finalized in spring.
The link will probably initially transport blue hydrogen — which is produced by converting natural
gas and capturing the carbon that’s emitted — Habeck said. Later on, new offshore wind farms can
also feed into the pipeline and enable it to take green hydrogen, which is made using renewable
energy.
The plan will help Germany phase out coal in western regions by 2030, Habeck said. So far the
government’s coal phase-out date is 2038, which it aims to reach also in the eastern regions.
Studies show that the country would need around 66 terawatt-hours of hydrogen by 2030, according
to estimates of the German Energy Agency dena and EON SE. In its own strategy, the government
only aims to produce 10 gigawatts at home, meaning that it will heavily depend on imports.
Berlin has said it’s ready to spend more than €10 billion ($10.6 billion) under its clean-energy
subsidy program, which pushes the use of hydrogen and carbon capture. Partners like Norway are
seen as key to succeeding with the development of those technologies.

Turkey-Bulgaria LNG Deal Opens Quiet Corner of EU Gas Market
Bloomberg + NewBase
Turkey gave Bulgaria access to its liquefied natural gas terminals, opening up a tightly controlled
corner of the European gas market that could help diversify the region’s supply mix.
Bulgaria’s state-owned Bulgargaz EAD will be able to import LNG via Turkey’s terminals and grid
for 13 years, under a deal signed in Sofia on Tuesday. Bulgaria will be able to use a total capacity
of around 1.5 billion cubic meters annually, Turkish Energy Minister Fatih Donmez told reporters. If
fulfilled, the capacity meets about half of Bulgaria’s domestic demand.
The agreement opens up a welcome new supply route in southeastern Europe after Russia curbed
shipments to the continent following its invasion of Ukraine. Previously, Bulgaria’s shortest way to
access to LNG was via Greece, where buyers have to compete for berthing slots under European
Union rules.
Turkey, outside the EU but connected to it by pipeline, isn’t bound by those rules and has capacity
to spare.
“Thanks to this agreement, we are now able to purchase gas from producers all over the world,”
Bulgarian Energy Minister Rosen Hristov told reporters. “This is a solution not just of national and
regional importance, but also of importance for Europe.”
Southeast European LNG import terminals , Source: Bloomberg

While western Europe is rushing to build new infrastructure to replace Russian gas, Turkey used
less than half of its four LNG terminals’ 21.9 million tons of capacity last year, according to
Bloomberg data. A fifth facility is due to start later this month.
TURKISH LNG IMPORT TERMINALS
TERMINAL CAPACITY (MTPA) OWNERSHIP
Aliaga 4.4 Egegaz
Dortyol FSRU 4.1 Botas
Marmara Ereglisi 5.9 Botas
Etki Liman FSRU 7.5 Etki Liman, Kolin Construction
Source: International Gas Union
Hub ambitions
Turkey’s Thrace region, on the border with Bulgaria, is where it plans to create a “global hub” for
gas.
Ericsson
In addition to LNG, Ankara is investing in new storage capacity and negotiating with Russia and
Turkmenistan for new supply that could flow via Turkey to Europe. Potential hurdles include pipeline
costs that could run into billions of dollars and geopolitical friction between the EU and Russia.
Turkey took another step toward its aim in December when Romania agreed to import Azerbaijani
gas via Turkey. Bulgaria currently gets a third of its annual supplies from Azerbaijan via a long-term
contract.

India:Mukesh Ambani Driving $75 Billion Green Bet
Bloomberg + NewBAse
Mukesh Ambani, the billionaire chairman of Reliance Industries Ltd., will be focusing his attention
on the Indian conglomerate’s pivot to green energy, according to people familiar with the matter,
after putting his children in charge of other businesses.
The 65-year-old will oversee strategy,
including the building of gigafactories and
blue hydrogen facilities, will assess
acquisition targets, and is talking to
potential investors, the people said,
asking not to be named as the
information isn’t public. Ambani last year
unveiled plans to spend $75 billion on
clean energy projects over the next 15
years.
Asia’s second-richest man is known for
his single-minded focus on key pursuits:
In the 1990s he lived for months in
shipping containers to build what is today
the world’s largest petrochemical refinery
and about two decades later another of
his upstart firms became India’s biggest telecom operator. Ambani has since handed the operational
reins to his three children and turned his attention to green energy, which will see him go head-to-
head with the region’s wealthiest person, Gautam Adani.
A spokesman for Reliance didn’t respond to an email seeking comment. Its shares rose as much
as 0.7% in Mumbai trading on Thursday before giving up their gains.
Ambition to Disrupt
Reliance is seeking billions of dollars of investments in India’s energy sector and has approached
potential investors including Middle Eastern funds, two of the people said. His ambition is to disrupt
the sector just like he did with his mobile phone company Reliance Jio Infocomm Ltd., one of the
people said, adding that the billionaire and his team were telling marquee investors they would own
every link of the renewables supply chain that can enhance margins.
Ambani’s dealmaking acumen will be crucial. Reliance spent almost $50 billion to build Reliance
Jio, which became India’s No. 1 wireless carrier within some three years of its 2016 debut by offering
free calls and cheap data. Then, over a few months of the pandemic lockdown in 2020, Ambani
raised more than $20 billion for his digital ventures from a slew of investors including Silicon Valley
giants, Meta Platforms Inc. and Google.
Reliance, with a market value of $206 billion, has a 2035 target for turning carbon net-zero. India’s
transition from fossil fuels to renewables will provide an opportunity for Reliance’s continuous
“hyper-growth” over many decades, Ambani told shareholders last August. Adani, on his part, has
committed $70 billion to become the world’s largest renewables player.
Ambani’s focus on clean energy comes after he spent much of last year establishing his children at
his empire’s other businesses. Eldest son Akash Ambani was named chairman of Reliance Jio, twin
sister Isha Ambani will oversee Reliance’s retail operations and youngest Anant Ambani will be
looking after the energy unit.

China’s Reopening Isn’t Boosting Global Oil Markets Yet??
(Bloomberg + NewBase
While China’s emergence from Covid Zero spurred talk of a demand boom from some of the
market’s biggest names, a significant resurgence in energy consumption remains weeks, if not
months away.
Instead, global oil markets have started the year looking much like they did at the end of 2022:
oversupplied due to a combination of lackluster demand and robust supply, while simultaneously
struggling with thinner trading volumes than historically has been the case.
Add to that a spate of unexpected outages and the result is a market that’s prone to big moves,
making it challenging for traders of physical oil barrels to predict which way prices might be headed.
“To me, the market is oversupplied by at least 1 million barrels a day,” said Gary Ross, a veteran
oil consultant turned hedge fund manager at Black Gold Investors LLC. “We are going to have large
stock builds. In a couple of weeks you’re going to be building 10 million barrels a week, how is the
market going to handle that?”
With the near-term oversupply compounded by a swath of US refinery closures following a recent
deep freeze, here are some of the reasons why the oil market isn’t yet seeing the benefits of China’s
big reopening.
1) The Big Freeze
Shortly before Christmas, a cold snap hammered huge parts of the US, forcing rapid shutdowns of
refinery capacity. At its peak, about 40% of Texas’ crude processing capacity was shut down, with
a portion of that remaining offline into the first week of 2023.

“We’ve seen these big freeze-offs in the US and that has meant that the crude balance has actually
weakened,” Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd., said in a Bloomberg TV
interview.
2) Global Slowdown
Worries over the health of worldwide consumption continue to linger due to the risk of a
synchronized deceleration in the US, Europe and China. On Tuesday, manufacturing figures
showed the Chinese economy was in steep decline in late-2022. While mobility has improved in
recent days, there are still concerns that the latest surge in infections will lead to further economic
slowdown.
In the US, manufacturing figures missed expectations and showed continued contraction
Wednesday, while European figures also showed a pullback for December.
3) Seasonal Weakness
The first quarter of the year is typically a time when stockpiles build. The most recent forecast by
the International Energy Agency estimated oil supplies at about 600,000 barrels a day above
demand in the first quarter, and this was even before the impact of the US cold snap and resultant
refinery closures were known.

“The stockbuild in the first quarter is going to be a reflection of first quarter activity and it will be in
the doldrums,” Ross said.
Subsequently, warm weather in much of the West has also reduced some pressure across energy
markets to meet heating demand. Most of the US is now expected to see warmer-than-normal
temperatures from Jan. 10-16, according to the National Oceanic and Atmospheric Administration.
Earlier, crude demand had received a boost as some power generation units switched from gas to
oil amid a natural gas shortage.
4) Technical Trouble
For months, the oil market has had to grapple with underwhelming liquidity as soaring volatility and
margins pushed open interest to multi-year lows. The retrenchment has left prices susceptible to
sharp swings on days when technical traders known as commodity trading advisors, or CTAs,
dominate trading.

This week, US crude futures briefly broke above their 50-day moving average, before dropping back
below that level — a move that spurred additional technical selling. CTAs were also selling oil during
Wednesday’s price drop, people involved in the market said. Momentum-driven selling is also
adding to the rout, they added.
5) Demand Destruction
“The abrupt lifting of Covid-19 restrictions and testing requirement since early December and the
strong resurgence of infections subsequently have caused demand destruction in recent weeks,
especially for gasoline and gasoil,” according to a note from FGE, referring to China.
While major cities such as Beijing, Shanghai and Guangzhou are past their Covid peak, rising cases
in inland and rural areas will limit the demand upside in the near term, the industry consultant added.
Beijing has also granted another generous allocation of fuel export quota to refiners this year,
prompting traders and analysts to forecast much of the demand boost from China would come in
the later months.

NewBase January 06 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices edge up on optimism over China's reopening
Reuters + NewBase
Oil prices rose as much as $1 on Friday, extending gains from the previous session, supported by
hopes of a China demand boost and after data showed lower U.S. fuel inventories following a winter
storm that hit at the end of the year.
Brent crude futures were 75 cents, or 1%, higher at $79.44 a barrel at 0645 GMT, after settling 85
cents stronger at $78.69 on Thursday.
U.S. West Texas Intermediate crude futures were up 74 cents, or 1%, at $74.41 a barrel. They had
settled 83 cents higher at $73.67 in the previous session.
"China's reopening optimism, especially further stimulus measures to boost the property sector, is
the main bullish factor for the oil prices, which has improved the demand outlook in the near year,"
said Tina Teng, an analyst at CMC Markets.
"A softened U.S. dollar has also added upside momentum to the oil markets," she added. China
announced more state support measures on Thursday, including establishing a dynamic
Oil price special
coverage
 Brent, WTI rise over 1% on Friday, down 7% on weekly basis
 China eases mortgage rules, Lunar New Year trips forecast to double
 Saudi Arabia cut prices of Arab light crude to over 1-year low

adjustment mechanism on mortgage rates for first-time home buyers, in a bid to boost its highly
indebted property sector, which accounts for a quarter of the country's economy.
Natural Gas Prices Are Plunging On a Warmer Start to Winter
Bloomberg + NewBase
A warmer-than-expected start to winter in large parts of the world that could linger for weeks —
especially across the US — is easing fears of a natural gas crisis that had been predicted to trigger
outages and add to power bills.
Forecasts point to temperatures above seasonal norms for most of Europe and the US over the
next several weeks. It’ll also be more mild across much of China — the world’s biggest gas importer
— over the next 10 days, and Tokyo may see a temperature spike around mid-January.
Gas futures are plummeting on reduced fuel consumption and the weaker outlook. US benchmark
prices dropped as much as 12% Tuesday to dip below $4 per million British thermal units for the
first time since February.
Despite a winter storm bearing down from coast to coast across the US in December that sent
natural gas forecasts soaring, much of the South and New England ended the month warmer than
average, according to Brett Anderson, a meteorologist with AccuWeather Inc.
“The risk of extreme market tightness that people were worried about before the winter started
seems low now,” said Abhishek Rohatgi, a Singapore-based analyst at researcher BloombergNEF.
Europe has rebuilt inventories, while milder weather across North Asia means there’ll be less
competition for liquefied natural gas cargoes, he said.

Governments and utilities had been bracing for gas shortages after Russia invaded Ukraine last
year, disrupting energy deliveries and lifting global demand for LNG. Prices for gas and coal hit a
record as importers rushed to stockpile fuel for winter, when consumption peaks.
Those efforts to build inventories mean the biggest consumers are now sitting on comfortable
supplies. In fact, Germany was able to add more gas into storage at the end of December as a mix
of warmer weather and lower activity during the holiday season trimmed fuel use. Gas stocks there
are now above 90% full, after slipping to a season low of 87% before Christmas.
Gas storage across Europe is 84% full, far above the five-year seasonal norm of 70%, according to
Gas Infrastructure Europe.
Part of the reason for the milder temperatures in what’s usually the coldest month of the year is that
the polar vortex winds are keeping the frigid air bottled up further north, AccuWeather’s Anderson
said. It’s allowed mild air off the Pacific Ocean to flow across the US, keeping the cold at bay.
“We don’t see any weakening and as long as it stays strong, most of the cold stays up over the polar
region,” Anderson said. “I don’t see any Arctic outbreaks here for much of January.”
Wind has also been reducing stress on the Europe’s energy systems. Germany is expected to
produce near-record wind power on Wednesday, according to a Bloomberg model, curbing the need
for gas to produce electricity.
Demand destruction in recent months has helped to balance the gas market. Some industrial
consumers in Europe lowered or halted output because they didn’t want to pay high prices, while
emerging nations such as Pakistan and Bangladesh stopped importing LNG because they could no
longer afford it.

The impact in China of a surge in Covid cases should add to the muted picture, keeping gas demand
lower there for the next few months, according to traders.
Still, there are risks ahead from any unexpected bouts of extreme weather. A prolonged blast of
late-winter cold could drain gas inventories and catapult fuel prices higher. Utilities will also soon
need to begin planning to avoid shortages again next winter as they adjust to a lack of Russian fuel.
Energy commodity prices in 2022 showed effects of Russia’s full-
scale invasion of Ukraine . eia
After increasing 68% from January through June, the energy component of the S&P Goldman
Sachs Commodity Index (GSCI) ended the year 10% higher than the first trading day of 2022.
Global events—notably Russia’s full-scale invasion of Ukraine, which has been ongoing since last
February—have contributed to greater volatility in the energy sub-index and higher prices for some
energy commodities at the end of 2022.
The S&P GSCI is a weighted average of 24 individual commodity contracts organized into five sub-
indexes. The weight assigned to each commodity reflects its significance to the world economy as
measured by its production volume and liquidity.
Two major crude oil benchmarks—West Texas Intermediate (WTI) and Brent—account for 70% of
the weighting in the energy sub-index. As a result, the energy sub-index tends to follow major price
movements in the crude oil market. Crude oil prices rose substantially following Russia’s full-scale
invasion of Ukraine and subsequent sanctions placed on Russia.
The WTI crude oil price increased to a monthly average of $114 per barrel in June, the highest price
in real terms since September 2014. Concerns about the Federal Reserve increasing interest rates
and economic slowdown in China caused by COVID-19 mitigation policies contributed to the WTI
crude oil price increasing just 3% overall compared with the first trading day of the year.

Three petroleum-based products, combined, account for 24% of the S&P GSCI energy sub-index:
 RBOB (a reformulated grade of gasoline used as the benchmark for gasoline trading)
 ULSD (ultra-low sulfur diesel, which is used as a benchmark for heating oil trading)
 Gasoil
RBOB increased 5% following changes in crude oil prices. In contrast, ULSD prices increased by
41%, and gasoil prices increased by 36%. A combination of low inventories in the United States and
globally, reduced refinery capacity, and disruptions to Russia’s distillate exports caused by
sanctions contributed to these price increases.
Natural gas, which accounted for the remaining 6% of the energy sub-index, increased by
20%. Record liquefied natural gas exports to Europe to replace reduced natural gas exports from
Russia contributed to the increase, as well as more natural gas consumption for electricity
generation.
The U.S. benchmark Henry Hub natural gas price increased to average $8.78 per million British
thermal units in August, the highest price in real terms since November 2008, before declining
through the rest of the year.

NewBase Specual Coverage
The Energy world –January -06 -2023
CLEAN ENERGY
CLIMATE ISSUES TO WATCH IN 2023: TOWARD COP
28 AND FASTER, MORE URGENT CLIMATE ACTION
BY UN FOUNDATION CLIMATE AND ENVIRONMENT EXPERTS ON DECEMBER 12, 2022
When it comes to climate change, 2022 was a split screen: As the world took several important
steps to curb the climate crisis, its impacts continued to worsen. Our climate and environment
experts take stock of the progress that’s been made and look ahead to the work that remains to be
done.
2022 delivered important progress in the climate change fight. The United States enacted its first-
ever climate legislation. The Inflation Reduction Act will inject an unprecedented $369 billion of
public spending and tax credits into the U.S. economy to boost clean energy, clean infrastructure,
and climate resilience over the next decade.
Four years of consecutive droughts have left families in southern Madagascar helpless and unable to feed
themselves. Access to water remains difficult for the region of Androy. Photo: Safidy Andrianantenaina
Australia elected a pro-climate-action government that quickly raised the country’s climate targets
and enacted legislation to match. In Brazil, President Luiz Inácio Lula da Silva won on a platform
that included halting and reversing Amazonian deforestation. And at COP 27 in Egypt, countries
agreed to develop new funding arrangements that can mobilize resources to help developing
economies suffering directly — and disproportionately — from the impacts of climate change.

At the same time, however, the climate crisis has grown even more acute as emissions continue to
rise at an alarming rate. There were daily reminders this year of the increasingly severe and
irreversible consequences that will ensue if we allow the world to break the 1.5°C warming threshold
over preindustrial times — from catastrophic flooding in Pakistan and China, to record-breaking heat
waves in the U.S. and Europe, to severe drought in Africa and record ice melt at the poles.
It is clearer than ever that climate change is interwoven with other great crises the world is facing
by fueling them and playing a critical role in how we work to resolve them. Take Russia’s invasion
of Ukraine, which is causing Europe to pay the economic and security consequences of its own
fossil fuel dependence and is forcing near-term decisions that will have long-term impacts.
Those decisions will determine whether the continent’s transition away from fossil fuels accelerates
or slows by locking in more dirty infrastructure in its pursuit of quick relief from soaring energy prices.
This has, in turn, triggered a global food security crisis. The combination of rising energy prices,
climate-fueled droughts, and the curtailment of Ukrainian agricultural exports pushed a perilously
stretched global food system to the brink.
Here’s a closer look at the state of play as we exit 2022, and what it means for climate action in
2023.
Built atop small lagoon islets, Venice, Italy, has been a victim of both subsidence and, more
significantly, global sea level rise fueled by climate change. The Italian government has funded
construction a series of floodgates to close the lagoon entrance before exceptionally high tide
phenomena known as acqua alta. Photo: Adam Sébire
1. CLIMATE DIPLOMACY AND THE PATH TO COP 28
Despite a lack of major negotiating deadlines, an important breakthrough for climate justice and
climate diplomacy occurred at COP 27. Countries successfully negotiated a long-sought agreement

to establish a suite of funding arrangements, including a new “loss and damage” facility to help
compensate developing economies suffering from the devastating effects of climate change.
The UN Secretary-General’s launch of the Early Warnings for All initiative also put vulnerable
countries in focus at COP 27. The initiative aims to ensure that every person on Earth is protected
by disaster forecasting, preparedness, and response in the next five years. In fact, the urgent need
for early warning systems was so widely appreciated at COP 27 that, for the first time, they figured
prominently in the cover decision, known as the Sharm el-Sheikh Implementation Plan.
The Secretary-General also zeroed in on non-state actors and seized the moment to launch
the recommendations developed by his High-level Expert Group on the Net-Zero Commitments of
Non-State Entities (HLEG). The independent group was created to address the “deficit of credibility
and a surplus of confusion over emissions reductions and net zero targets by establishing the
standards and measure that must be adhered to ensure action and combat greenwashing.”
WHAT TO WATCH FOR IN 2023
"Nothing that happened at COP 27 will diffuse the mounting pressure on countries to demonstrate
at COP 28 in Dubai that they will take immediate and decisive action to keep the goals of the Paris
Agreement within reach."
Pete Ogden, Vice President for Climate and Environment, & Ryan Hobert, Managing Director for
Climate and Environment, UN Foundation
One space to watch closely will be the Global Stocktake, which is mandated under the Paris
Agreement to take place every five years to evaluate implementation progress against the goals of
the agreement. The first Global Stocktake began in 2022 at a technical level and will culminate at
COP 28, but a great deal of uncertainty remains about what this undertaking will deliver.
A Stocktake that simply tells us what we already know — that we are off track — would be seriously
deficient. Countries have also set important deadlines to establish a new global goal on adaptation
by COP 28, as well as to make progress and deliver on a number of existing climate finance
commitments. These range from working out how to establish a “loss and damage” facility to
meeting other existing finance commitments that developed economies have failed to thus far
deliver, including the $100 billion in financing to developing economies that was pledged starting in
2020.
Devastating drought has affected
human lives and livestock in the
Horn of Africa, leaving nearly 20
million people in need of
humanitarian assistance. Photo:
Mulugeta Ayene /UNICEF

2. CLIMATE FINANCE
After decades of advocating for dedicated funding to help vulnerable countries cope with the impacts of a
climate crisis many of them did little to cause, developing economies and partners made a unified push for
progress on this issue in 2022 — and they finally succeeded. These recourses, some of which will be
delivered through a new loss and damage facility agreed at COP 27, will help them to cope with the
droughts, floods, storms, and other climate-induced catastrophes, whether their onset was fast or slow. In the
wake of this landmark agreement, the focus now shifts to figuring out how to make this fund operational
and able to receive substantial contributions to fulfill its enormous task.
"At COP 27, countries gave themselves a year to establish this new loss and damage facility and to
organize other avenues and channels of funding accordingly."
David Levaï
Fellow for International Climate Policy and Diplomacy, UN Foundation
Alongside loss and damage, other important climate finance issues will need to be addressed in 2023. This
includes if and how developed economies can at last reach the threshold of mobilizing $100 billion of public
and private climate finance for developing economies — a threshold that they had pledged to reach annually
beginning in 2020 but have yet to fulfill. Over the past two years, developed economies have also started to
co-design climate finance packages with major emerging economies to accelerate their transition away from
fossil fuels in a just and sustainable manner, and there is potential for another such finance package for India
to be arranged in 2023.
But more structural change may also be in the making, as developed economies are under growing pressure
to reform and capitalize international financial institutions, such as the World Bank, so they can invest more
in climate efforts, attract private capital, and help vulnerable countries escape a cycle of catastrophes and
debt. We will be closely following how this unfolds in 2023, including at a finance summit in Paris in June
2023 and the World Bank and International Monetary Fund Annual Meetings that will take place in
Morocco next fall.
The war in Ukraine has led to startling food shortages—meaning there are frequently empty shelves in
grocery stores in Kiev. Photo: Drop of Light/Ukraine

3. FOOD SYSTEMS AND CLIMATE CHANGE
2022 was arguably food and agriculture’s breakout year on the climate scene. Russia’s invasion of
Ukraine launched food security to the top of the geopolitical agenda. Already, food and agriculture
were gaining prominence on the international climate agenda, building on momentum and
awareness created by the UN Secretary-General’s Food Systems Summit in 2021.
With food systems generating up to a third of all greenhouse gas emissions, food and agriculture’s
new position as a primary climate concern was evident everywhere at COP 27. Not only did
agriculture make it onto the list of thematic days for the first time, but the number of COP pavilions
with all-day programming on food and agriculture issues jumped from zero to five.
Several major international food and agriculture initiatives, such as the Agriculture Innovation
Mission for Climate (AIM for Climate), the Egyptian presidency’s Food and Agriculture for
Sustainable Transformation Initiative (FAST) initiative, and the US-led Global Fertilizer Challenge,
were established or strengthened at COP 27.
And agriculture was one of the headline issues called out in the Sharm el-Sheikh Implementation
Plan, with the establishment of a four-year joint work plan to ensure that food and agriculture remain
on the international climate agenda in the coming years.
"There will be many opportunities to make further progress on food, agriculture, and climate
in the year ahead — thanks to the newfound prominence on the global climate agenda."
Lasse Bruun, Climate and Food Director; Ryan Hobert, Managing Director for Climate and
Environment; and Evelin Tóth, Senior Analyst for Climate Policy and Research, UN
Foundation
In 2023 countries and other partners will consolidate and expand recent gains in agricultural
innovation to address climate resilience and mitigation, including for smallholder farmers and in the
realm of agroecology. For the first time, the UN Food and Agriculture Organization announced that
it will develop a plan by COP 28 to reduce emissions from food and agriculture systems in line with
the goal of keeping temperatures from rising above 1.5°C. The AIM for Climate initiative, led by the
United States and the United Arab Emirates, and of which the UN Foundation is a partner, will hold
a major summit in Washington, D.C., in May, and the initiative’s work is expected to be prominently
featured at COP 28 given that the UAE is the host.
Hundreds of mangrove seedlings
are growing in a small bay of an
island south of Fiji's main island Viti
Levu. Fiji's government sponsors
several mangrove reforestation
initiatives throughout the country to
combat eroding coastlines and
restore mangrove forests where they
have been cut down due to coastal
development. Photo: Tom Vierus

4. THE OCEAN
2022 was the long-awaited “Super Year of the Ocean,” and it did not disappoint. Throughout the
year, the ocean took center stage, including at the One Ocean Summit in Brest, France, the Our
Ocean Conference in the Micronesian Republic of Palau, and the UN Ocean Conference in Lisbon,
Portugal.
Together, these conferences highlighted the critical role the ocean plays in supporting human well-
being broadly, from food security to climate adaptation and mitigation. Recognizing this,
governments, companies, and civil society actors made commitments and pledges to address the
full range of ocean challenges and provide billions of dollars in needed funding for ocean action.
Highlights included renewed efforts to combat illegal fishing, protect and restore marine and coastal
ecosystems, and promote ocean-based climate action such as by decarbonizing shipping and
increasing offshore renewable energy.
There also were major milestones for the ocean in 2022 in “non-ocean” global forums such as the
World Trade Organization, where members agreed to prohibit harmful fisheries subsidies, and
the UN Environment Assembly, which agreed to begin negotiations for a binding global treaty to
end plastic pollution.
COP 27 also furthered the “blueing” of climate action, with a renewed commitment to a formal
ocean/climate dialogue as well as hundreds of ocean-focused events and, for the first time, a
physical Ocean Pavilion that served as a hub for the ocean-climate community.
"In the coming year, we should expect the 'mainstreaming' of the ocean into global
consciousness, and the recognition of the ocean as a source of solutions for humanity, to
continue."
Susan Ruffo, Senior Advisor for Ocean and Climate, and Kerrlene Wills, Director for Ocean
and Climate, UN Foundation
Ocean-based solutions to climate change, food security, and energy stability will receive greater
recognition in 2023. This will include work at the International Maritime Organization (IMO) to
accelerate the decarbonization of the global shipping sector, as well as a renewed push from
governments around the globe to develop clean ocean-based energy sources such as offshore wind
in the U.S. and Europe and ocean thermal energy conversion in the large ocean states of the
Pacific.
Key ocean moments in the upcoming year will include the Our Ocean Conference in Panama in
March, which will catalyze new commitments for ocean conservation and action; a final round of
negotiations on marine biodiversity in areas beyond national jurisdiction; and a critical meeting of
the IMO in July that will determine whether the international maritime sector can reduce emissions
in line with the Paris targets and potentially even set a sectorwide price on carbon emissions.
Expect the ocean to also play a prominent role at COP 28, given that host UAE is already
highlighting the role of ocean and coastal ecosystems in both mitigating and supporting adaptation
to climate change and has made enhancing and restoring ecosystems such as mangroves,
saltmarshes, and seagrasses part of its Net-Zero 2050 Strategy.
2022 may have been the first “super year” for the ocean, but it certainly won’t be the last as
momentum increases ahead of the next UN Ocean Conference in 2025.

After the floods in Jacobabad, Sindh province, Pakistan, Aneefa Bibi holds her 5-year-old daughter,
Hood. Villages like Aneefa's need the most attention after the recent floods as malaria, skin and
other diseases are on the rise amongst the locals, especially children. Photo: Saiyna Bashir
5. ADAPTATION AND RESILIENCE
The latest climate science from the Intergovernmental Panel on Climate Change is clear: Millions
of people are already exposed to acute climate-fueled food and water insecurity, and progress in
adapting to the impacts of climate change is uneven, fragmented, and insufficient to prevent human
suffering and loss of life in the face of increasing impacts.
Part of the challenge in addressing these impacts has been a lack of financing for resilience, as
available finance is roughly 10% of what is needed and is not reaching those on the front lines of
climate change, such as smallholder farmers, whose livelihoods are entirely dependent on favorable
climate conditions. Most worryingly, while daily losses attributed to climate impacts exceed $200
million, negotiators at COP 27 did not formally place adaptation finance on the agenda.
"An effective global goal on adaptation would help the world to measure its progress and
put the issue on more equal footing with mitigation."
Cristina Rumbaitis del Rio, Senior Advisor for Adaptation and Resilience, UN Foundation
Negotiators now have a framework for the global goal on adaptation, which is meant to be developed
and agreed by COP 28. It would also provide greater accountability for adaptation action and
delivering the financing needed to reach the global goal, including ratcheting up the pressure on
developed economies to deliver the additional $40 billion a year in adaptation finance by 2025 that
they pledged at COP 26.

We are also excited for new global initiatives, such as Early Warnings for All. This initiative is rapidly
gaining support as early warnings and early action save lives — and is extremely cost-effective.
Finally, we are looking to see more innovative new business models to support the resilience of
those on the front lines of climate change, such as smallholder farmers from initiatives like AIM for
Climate, which is seeking to increase the $8 billion in investments already mobilized for innovation
in climate smart agriculture and food systems to $10 billion by COP 28.
6. THE INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE
In 2022, the IPCC released two major reports as part of its sixth assessment cycle. The February
report on climate change impacts, adaptation, and vulnerability found that the world is not on track
to achieve a climate-safe future. Climate change already has an adverse impact on billions of people
and ecosystems, and action to adapt to the climate crisis is lagging behind what is needed to stave
off the worst impacts of climate change. The April report on climate change mitigation found that the
decade from 2010 to 2019 had the highest increase in greenhouse gas emissions in human history,
but while the window to limit warming to 1.5°C is rapidly closing, there are viable strategies in every
sector to limit emissions.
"2023 will be an important year for the IPCC in which it will both wrap up its current cycle
with a final report launch synthesizing all of its findings and begin the transition to its next
series of reports."
Kristyn Ostanek, Research Associate for Climate and Environment, UN Foundation
In 2023, the IPCC will conclude its sixth assessment cycle with a Synthesis Report, expected for
publication in March. This will weave together and summarize findings from the three working group
reports and the three special reports from this cycle and will serve as the IPCC’s main input into the
Global Stocktake. Also in 2023, the IPCC will begin to transition toward its seventh assessment
cycle, with an election for new leadership and a shift in focus to the topics anticipated in the next
cycle, including a special report on cities and urban areas.
Contracted workers clean Heliostats at the Ivanpah Solar Project in Nipton, CA. Over 300,000
software-controlled mirrors track the sun in two dimensions and reflect the sunlight to boilers that
sit atop three 459 foot tall power towers. Photo: Dennis Schroeder/NREL

7. SUB-NATIONAL ACTION ON CLIMATE
In the face of political change and legal uncertainty across the U.S., sub-national leaders continued
to advance and supercharge the next generation of innovative, high-impact climate actions in 2022.
Notably, bold and sustained action from 24 U.S. states and territories that are part of the U.S.
Climate Alliance resulted in less pollution, more clean energy savings, and more abundant clean
energy jobs than the rest of the country.
The alliance this year deepened its partnership with the Biden Administration to lock in progress
across government, responded forcefully to a harmful U.S. Supreme Court decision, and,
importantly, played a key role in securing passage of the Inflation Reduction Act to deploy the most
significant climate and clean energy investments in U.S. history.
"Implementation was not just a key theme at COP 27 — it will continue to feature in the year
ahead when U.S. states will play a critical role in delivering the benefits of the Inflation
Reduction Act."
Casey Katims, Executive Director, U.S. Climate Alliance
The IRA has the potential to reduce emissions, improve public health, save consumers money,
create more jobs, and advance equity. The role of sub-national actors can’t be overstated. State-
level ambition and action could help the U.S. reach its broader climate goals and accelerate
progress toward net-zero. The U.S. midterm elections reaffirmed the importance of climate action
and leadership at the state level, and after having celebrated its fifth anniversary this summer, the
U.S. Climate Alliance looks forward to welcoming a number of new governors into its coalition and
continuing to build on its momentum in the year ahead. The Alliance also expects continued action
across several priority policy areas from alliance states, including more states adopting clean car
and truck standards, building codes that support decarbonization pathways, and regulations that
reduce methane leaks.

NewBase Energy News 06 January 2023 - Issue No. 1580 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program

broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

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