Home Blog Page 2671

Oppenheimer to screen in Japan next year after nuclear controversy

CILLIAN MURPHY in a scene from the film Oppenheimer. — IMDB

TOKYO — Universal Pictures’ Oppenheimer will screen in Japan next year, a local distributor said on Thursday — a launch that had been in doubt amid criticism that the film largely ignores the devastation of the atomic bombings of the cities of Hiroshima and Nagasaki.

The Christopher Nolan-directed biopic about atomic bomb pioneer J. Robert Oppenheimer has grossed over $950 million globally since its July opening.

The film will open in Japan in 2024, distributor Bitters End said in a statement, noting that the movie is “considered a front runner for various film awards.” It did not give a specific date for the release.

Many Japanese were also offended by a grassroots marketing campaign linking the movie to Barbie another blockbuster that opened around the same time, with fan-produced images of the films’ stars alongside images of nuclear blasts.

A #NoBarbenheimer hashtag trended online in Japan in August, prompting an apology from Barbie distributor Warner Bros.

The dropping of atomic bombs by the United States on Hiroshima and Nagasaki toward the end of World War II resulted in more than 200,000 deaths. — Reuters

GT Capital shares up amid positive outlook

GT Capital Holdings, Inc.’s stock improved week on week amid a positive income outlook and after a previous sell-off offered discounted entry for investors.

Data from the Philippine Stock Exchange (PSE) showed a total of 491,420 shares of GT Capital worth P271.69 million were traded from Dec. 4 to 7, making it the 15th most actively traded stock on a four-day trading week. The stock also closed 8th among the most active stocks last Thursday.

Trading was cut short last week due to the feast of the Immaculate Conception of Mary on Friday.

Shares of the Ty-led holdings company picked up 4.1% week on week, closing at P557 apiece last Thursday from its P535 closing price on Dec. 1.

For the year, GT Cap.’s stock surged by 28%.

“In late November, GT Capital Holdings dipped due to foreign sell-offs, offering a discounted entry for December,” Globalinks Securities and Stocks, Inc. Senior Trader Mark V. Santarina said in a Viber message.

The P535 closing on Dec. 1 was the lowest for the stock since the P528 closing on Nov. 3.

“Investors are optimistic about [GT Capital’s fourth-quarter] performance, expecting contributions from Toyota Motor Philippines Corp. and a higher stake in Metro Pacific Investments Corp.,” he added.

Optimistic earnings outlook for the firm could drive the stock upward this week, Mr. Santarina said.

The local market declined last week by 71.08 points as it took cues from Wall Street and Asian markets awaiting data or new drivers.

Locally, the country’s inflation for November eased to 4.9%, the slowest in a year and eight months or since the 4.2% in March last year.

“As a blue-chip stock with robust subsidiary earnings, GT Capital Holdings stands out. The current easing of inflation is a positive factor for equities, potentially aiding the stock’s upward momentum,” Mr. Santarina said.

“Being part of the index, GT Capital could benefit from the December Santa Claus rally, further supporting the likelihood of a price increase,” he added.

The Ty-led holdings company reported a third-quarter net income of P28.95 billion, up by 11.7% quarter on quarter and 66.1% from the same quarter last year.

Attributable net income likewise surged by 54.5% year on year to P23.09 billion. However, quarter on quarter, it dropped by 2.2% to P6.5 billion from P6.65 billion in the second quarter.

Mr. Santarina placed the firm’s fourth-quarter and full-year net income at P5.3 billion and P23.5 billion, respectively, adding that GT Capital will be able to meet its targets this year.

He said that being one of the biggest holdings firms in the country, GT Capital has experienced growth this year as the country fully reopened.

“Despite commendable advancements in its automotive, insurance, and banking sectors, the corresponding stock valuation has not fully realized this success,” he said.

For the week, Mr. Santarina placed his support and resistance for the stock at P517 and P579, respectively. 

“We maintain a positive outlook on the Philippine economy, expecting its growth to persist into the next year, a favorable prospect for [GT Capital].” — Bernadette Therese M. Gadon

Gov’t debt yields drop on inflation data

YIELDS on government securities (GS) mostly went down last week after headline inflation slowed further in November.

GS yields, which move opposite to prices, went down by an average of 3 basis points (bps) week on week, based on the PHP Bloomberg Valuation (BVAL) Service reference Rates as of Dec. 7 published on the Philippine Dealing System’s website.

Yields on the 91-day and 182-day Treasury bills (T-bills) dropped by 21.39 bps (to 5.1506%) and 37.61 bps (5.2568%), respectively. Meanwhile, the 364-day T-bill saw its rate rise by 29.83 bps week on week to 6.0749%.

Rates at the belly of the curve were likewise mixed, Yields on the two- and three-year Treasury bonds (T-bonds) rose by 5.7 bps (to 6.0471%) and 2.12 bps (6.0861%), respectively, while the rates of the four-, five-, and seven-year bonds fell by 0.36 bp (6.1057%), 1.54 bps (6.1154%), and 3.72 bps (6.1340%).

At the long end of the curve, the 10- and 20- year debt papers went down by 5.61 bps and 0.48 bp to yield 6.173% and 6.3082%, respectively. Meanwhile, the rate of the 25-year bond inched up by 0.05 bp to 6.3103%.

Total GS volume reached P8.67 billion on Thursday, lower than P9.3 billion on Dec. 1, BVAL data showed.

The slower November inflation print pushed yields on most benchmark tenors down last week, Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

“GS yields declined as the lower-than-expected Philippine inflation solidified prospects of further easing in domestic prices,” a bond trader likewise said in an e-mail.

Headline inflation eased to its slowest pace in 20 months in November amid easing prices of food as well as restaurant and accommodation services, the Philippine Statistics Authority (PSA) reported last week.

Preliminary data from the PSA showed headline inflation climbed 4.1% annually in November, slower than 4.9% in October and 8% in November 2022.

This was the slowest rate in 20 months or since the 4% seen in March 2022.

It was also slower than the median estimate of 4.4% in a BusinessWorld poll of 15 analysts conducted last week, and at the lower end of the 4-4.8% forecast range of the Bangko Sentral ng Pilipinas (BSP). 

For the first 11 months, headline inflation averaged 6.2%, faster than 5.6% in the same period a year ago. This was still above the BSP’s baseline forecast of 6% and 2-4% target for 2023.

For this week, GS yields may move sideways to lower, depending on the results of the policy meetings of the US Federal Reserve and the BSP, Mr. Ravelas said.

The slower November inflation print has supported views that the BSP could keep its rates steady at its meeting this week, the bond trader said.

“For this week, bond yields might continue to head south as major central banks, including the BSP, are expected to maintain their policy rates on hold,” the trader added.

The BSP’s policy-setting Monetary Board will hold its last meeting for the year on Thursday.

A BusinessWorld poll last week showed 15 out of 17 analysts expect the BSP to keep its target reverse repurchase rate steady this week amid lingering upside risks to prices despite easing inflation recently.

The BSP last month kept its policy rate at a 16-year high of 6.5%. It has raised benchmark interest rates by a cumulative 450 bps since May 2022 to help tame inflation.

Meanwhile, the Federal Open Market Committee will meet on Dec. 12-13 to review policy. Markets expect the US central bank to keep rates steady for a third straight time this week.

The Fed kept its target rate steady at the 5.25%-5.5% range for a second straight time during its Oct. 31-Nov. 1 meeting.

The US central bank has hiked rates by a cumulative 525 bps since it kicked off its tightening cycle in March 2022. — AMCS

Analysts’ Expectations on Policy Rates (December 2023)

THE BANGKO SENTRAL ng Pilipinas (BSP) is widely expected to keep its key policy rate at a 16-year high on Thursday despite easing inflation as it remains vigilant against risks. Read the full story.

 

Analysts' Expectations on Policy Rates (December 2023)

Fed, BSP meetings to drive this week’s trading

BW FILE PHOTO

THE UPCOMING policy meetings of the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP) will be the main drivers of this week’s stock trading as investors await guidance on the direction of benchmark interest rates here and abroad.

On Thursday, the Philippine Stock Exchange index (PSEi) declined by 71.08 points or 1.12% to end at 6,234.77, while the broader all shares index retreated by 22.08 points or 0.65% to close at 3,329.58. 

Week on week, the PSEi fell by 10.41 points from its 6,245.18 close on Dec. 1. The stock market was closed on Friday for a nonworking day.

“The local bourse was range-bound for the week amid steady local inflation in November,” online brokerage 2TradeAsia.com said in a market report.

The market has been on a losing streak for two straight weeks amid profit-taking, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The local market remains at bargain levels with a price-earnings ratio of 13.46 times, below the 2018-2022 average of 19.08 times. However, strong buying may only happen if investors see catalysts that would brighten our economic outlook,” he added.

For this week, the policy meetings of the Fed and the BSP will be the main trading drivers, Mr. Tantiangco said.

The Federal Open Market Committee will hold its final review for the year on Dec. 12-13, while the BSP’s Monetary Board will meet to discuss policy on Dec. 14.

“[This] week, investors are expected to focus on the policy meetings of the Federal Reserve and the BSP as they look for clues on the outlook for interest rates. Hints of easing may spur optimism in the market while hints of further tightening is expected to weigh on sentiment,” he said.

“The BSP is likely to echo the Fed in a status quo in rates. Philippine inflation has further eased to 4.1% in November from October’s 4.9%, and prior rate hikes have seemingly impacted foreign exchange and money supply as intended,” 2TradeAsia.com said. 

The market will also await hints on the timing of Fed and BSP rate cuts, it said.

The BSP has raised benchmark interest rates by a cumulative 450 basis points (bps) since May 2022 to help bring down its inflation, with its policy rate now at a 16-year high of 6.5%.

Meanwhile, the US central bank has hiked rates by a cumulative 525 bps to the 5.25%-5.5% range since it began its tightening cycle in March 2022.

Investors expect both the BSP and the Fed to start easing their policy stances by 2024.

“Investors may also look towards our upcoming foreign trade, foreign investment, and overseas Filipino workers cash remittances data for clues on our local economy,” Mr. Tantiangco added. 

He expects the PSEi to retest its 10-day exponential moving average this week.

“The market’s major support is seen at 6,000. Major resistance is seen at 6,400,” he added. — R.M.D. Ochave

Peso to move sideways before BSP, Fed

BW FILE PHOTO

THE PESO could trade sideways against the dollar this week ahead of the policy meetings of the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP).

The local unit closed at P55.30 per dollar on Thursday, inching up by less than a centavo from its P55.305 finish on Wednesday.

Week on week, the peso appreciated by 10 centavos from its P55.40 close on Dec. 1. The market was closed on Friday for a nonworking day.

For this week, the peso is seen to take its cue from the policy meetings of the Fed and the BSP, Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

Markets expect the Fed to pause at this week’s meeting, with the BSP likely to follow suit, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Federal Open Market Committee will hold its final review for the year on Dec. 12-13, while the BSP’s Monetary Board will meet to discuss policy on Dec. 14.

The Fed has hiked its target rate by a cumulative 525 basis points (bps) to the 5.25%-5.5% range since it began its tightening cycle in March 2022.

While the Fed is expected to keep rates steady on Wednesday for a third straight meeting, investors will watch for signs from policy makers that confirm the market’s view for rate cuts as early as March 2024. The Fed will also release its summary of economic projections, which will show officials’ rate expectations for next year, Reuters reported.

Meanwhile, the BSP has raised benchmark interest rates by a cumulative 450 bps since May 2022 to help bring down inflation, with its policy rate now at a 16-year high of 6.5%.

A BusinessWorld poll last week showed 15 out of 17 analysts expect the Monetary Board to keep its target reverse repurchase rate steady on Thursday, with the BSP remaining vigilant amid lingering upside risks to prices despite easing inflation recently.

Mr. Roces expects the peso to move between P55.30 and P55.60 per dollar this week, while Mr. Ricafort sees it ranging from P55 to P55.50. — AMCS with Reuters

Philippine exporters urged to tap ‘room to grow’ in EU markets

REUTERS

By Justine Irish D. Tabile, Reporter

PHILIPPINE exports to the European Union (EU) have room to grow with shipments to the bloc only sixth-largest within ASEAN, according to Philipp Dupuis, Head of Trade and Economic Affairs of the EU Delegation to the Philippines.

“I think that there is more to do because if you look at it, amongst our ASEAN trading partners, the Philippines is number six,” Mr. Dupuis told reporters last week.

“There is a lot of room and this room can be filled by Philippine enterprises exporting more to the US and Asia at the moment, which are their normal markets,” he said.

He said there is an information gap preventing some Philippine enterprises from giving their full effort to the European market.

He added that he EU is trying to address this imbalance through programs under ARISE Plus.

“Half a year ago there was a business guide which was published to help Philippine companies better understand the European market and what the expectations are in terms of product quality and technical regulations, etc.,” he added.

In 2022, trade in goods between the two amounted to 18.4 billion euros, which Mr. Dupuis said has exceeded pre-pandemic levels.

“I don’t have the latest figures for 2023, but we had good growth in 2022. We went beyond pre-pandemic levels last year so this is very good,” he said.

“There is still enormous potential as we can see Philippine companies exporting much more. Of course, we hope that in the long run, there’s more investment as well, which then again, also would increase potential opportunities for exports,” he added.

Asked about potential export levels to the EU, he said that: “I always say that potentially, you can export everything to the European market. If you have the right quality, there’s a place on the market.”

“We know what the Philippines is exporting now -— semiconductors, electronics, coconut products, and tuna — but you could imagine much more,” he added.

He said that in order to reach this potential, the Philippines will also need to broaden its manufacturing bases and look into the enormous potential for tourism.

“But the European tourists don’t manage to arrive in the Philippines yet in large numbers… because there’s no direct flights,” he said

“With time, you could also build up services exports (in the form of) European tourists coming to the Philippines. So there’s more than just the goods,” he added.

Meanwhile, he said that he is optimistic about a Philippine-EU free trade agreement (FTA), which is crrently at the scoping stage.

“One has to be optimistic, of course, but discussions are still ongoing so I don’t want to preclude any conclusion. But you know, I have good reasons to remain optimistic about it,” he said.

“You want to know what the landscape is before you start to negotiate. That simply is part of the preparation because an FTA also involves many resources on both sides,” he said.

“Before the end of the year, we will have some kind of wrap-up with the Department of Trade and Industry (DTI) and European Commission (EC), and based on that, we will decide whether there is a chance of having a successful FTA negotiation in a reasonable amount of time,” he added.

The EU and the Philippines first launched negotiations for an FTA in 2015, but these stalled in 2017 due to issues like intellectual property rights and data exclusivity, among others.

Asked about changes in the EU’s aspirations for the FTA, he said: “I think the goals don’t really change. We paused the negotiation six or seven years ago; of course, things have evolved.”

“Digitalization and ecommerce, for example, are becoming much more important. So there are certain things where we might put different accents on but overall know the overall general goals haven’t changed,” he said.

“And that is why we look into this process with a very, very positive spirit. Because we know each other already,” he added.

Gov’t urged to develop timeline to retire coal-fired power plants

PIXABAY

THE GOVERNMENT needs to lay down a timeline for decommissioning or repurposing coal-fired power plants, analysts said.

“In a just energy transition, this means that there should be a plan set out by the Department of Energy (DoE). What will be the timeline for the phaseout or transition of coal to renewable energy?” Greenpeace Philippines campaigner Khevin Yu said by telephone.

“Although it’s an effort in the part of DoE to reach out to power companies, they should have a better role in laying down how it should look like because it seems that they’re basically passing it on to the generating sector… but they can do more,” Mr. Yu said.

The DoE issued a statement last week encouraging a voluntary early and orderly decommissioning or repurposing of existing coal-fired power plants in line with the Philippines’ energy transition program.

This should be done while keeping supply stable and addressing the climate emergency by ramping up renewable energy to a 50% share by 2040, it said.

“The DoE should review and upscale the updates on renewable energy and eventually ’yung pagbawas nang malaki (the large reduction) and eventually phaseout of coal in the Philippines,” Mr. Yu said.

Angelika Marie C. David, manager for energy policy of the Institute for Climate and Sustainable Cities, welcomed the initiative of the DoE as it would likely add to the government’s climate action efforts and ramp up the integration of renewables in the energy mix.

“We trust that the DoE will treat the shift to renewable energy as their top priority in order to achieve affordable, reliable, and secure indigenous energy for all Filipinos,” Ms. David said in an e-mail.

For generation companies, this should be good news, according to China Bank Capital Corp. Managing Director Juan Paolo E. Colet, as this signals that “the DoE will not impose a mandatory phaseout of coal-fired power plants.”

“This assures conventional power companies that they can continue serving the country’s electricity needs while having the leeway to explore investments in renewable energy,” Mr. Colet said in a Viber message.

However, BDO Capital & Investment Corp. President Eduardo V. Francisco said that replacing coal-fired plants would need baseload power that would work “100% of the time.”

“Even if it says they want to transition but they have no incentives, they have no framework, it does not mean anything to me or to the gencos (generation companies),” Mr. Francisco said in a phone call.

“First of all, the big banks don’t lend to coal anymore. There’s no new coal being developed,” he added.

In 2020, the government declared a moratorium on greenfield coal-fired plants, signaling a shift to a more flexible power mix.

There are 62 coal-fired plants  connected to the grid as of August, with total installed capacity of 12,472.6 megawatts, according to the data from the DoE. — Sheldeen Joy Talavera

NEDA expects to comply with 90-day deadline for PPP IRR

PHILSTAR FILE PHOTO

THE National Economic and Development Authority (NEDA) said it is working on two sets of implementing rules and regulations (IRR) at the moment, but expects to meet the 90-day deadline to issue the rules for the Public-Private Partnership (PPP) Code.  

“We usually go by the deadline,” NEDA Undersecretary Rosemarie G. Edillon told reporters on the sidelines of an event last week.

“For sure, we will try to have (the IRR) issued earlier,” she said in a Viber message in response to a follow-up query Sunday.

 NEDA is also currently working on the IRR for the Trabaho Para sa Bayan Act, which is targeted for release in early February.

On Dec. 5, President Ferdinand R. Marcos, Jr. signed into law the PPP Code of the Philippines, which aims to enhance the investment ecosystem and create a more stable policy environment for collaboration in high-impact infrastructure projects.

The PPP Governing Board, chaired by NEDA Secretary Arsenio M. Balisacan, is tasked to issue the Code’s IRR.

The PPP Code, which goes into the books as Republic Act No. 11966, amended the Build-Operate-Transfer (BOT) Law to create a unified legal framework for all PPPs at both national and local levels.

The law defines PPP as a contractual arrangement between the implementing agency and the private proponent for the financing, designing, constructing, operating, and maintaining of infrastructure or development projects which are typically provided for by the public sector and where each party shares in the risks.

The law covers all PPP arrangements, such as BOT variants, joint ventures, and toll operations agreements. PPP projects may also be financed partly from direct government appropriations or official development assistance.

As of Sept. 1, there were 104 PPP projects in the pipeline at an estimated cost of P2.521 trillion. Some 180 projects are being implemented worth P2.639 trillion, according to the Department of Finance. 

Ms. Edillon said the NEDA will have to study the PPP Code before writing the IRR, ensure they have complete data, and fall in line with best practices in other countries.

In September, Mr. Marcos signed the Trabaho Para sa Bayan Act, which aims to boost the competitiveness of the workforce through upskilling and reskilling efforts.

The law establishes the Trabaho Para sa Bayan Inter-Agency Council, which will be headed by the NEDA secretary. It is tasked with drafting a master plan for employment generation and economic recovery, with three-year, six-year, and 10-year development timelines.

Meanwhile, NEDA is also working on a study on the establishment of the Knowledge, Innovation, Science and Technology (KIST) Park and Ecozones in state universities and colleges (SUCs).

Earlier in August, the Department of Science and Technology (DoST), the Philippine Economic Zone Authority (PEZA), and the Philippine Association of State Universities and Colleges (PASUC) signed a memorandum of understanding (MoU) for the creation of KIST Parks and Ecozones.

“Right now, they’re using the PEZA law. If you’re a PEZA (locator), a big percentage or 70% of what you produce has to be exported,” Ms. Edillon said.

She also said there are other restrictions for the KIST Park and Ecozones as employees are unable to work from home and production has to be done within the zone.

“We think it will not be a conducive environment for the knowledge and innovation part. So, we want to try and put in place a different policy framework,” she said.

There are 44 SUCs interested in establishing a KIST Park. Batangas State University launched its KIST Park on July 20, 2020. — Keisha B. Ta-asan

BoC confident of hitting 2024 collection target

ASIANTERMINALS.COM.PH

THE Bureau of Customs (BoC) said it is confident it will achieve its P1 trillion-collection target next year as economic conditions improve.

“I’m confident that our government is really doing its job and in some of the economic meetings that I’ve attended, our cabinet secretaries I think are very optimistic that interest rates will go down and we have good projections for next year. I am hopeful that with the economy getting better, trade will also get better,” Customs Commissioner Bienvenido Y. Rubio told reporters last week.

Based on the Budget department’s Budget of Expenditures and Sources of Financing, the BoC is tasked to collect P1 trillion next year.

It is also projected to generate P1.076 trillion by 2025 and P1.16 trillion by 2026.

Mr. Rubio said he will also adjust practices to improve revenue collection.

“We adjust policies based on what we observe, and whatever will help us increase our revenue collection, I will capture it and put it as a policy,” he added.

In the first 11 months, the BoC collected P813.651 billion, equivalent to about 93% of its full-year target. 

This was also 2.2% higher than the P795.966-billion target for the period and up 3.09% from a year earlier.

The BoC also reported that it seized a record P42.5-billion worth of smuggled goods in the year to date ending Dec. 1.

These consisted of counterfeit goods (P24.36 billion), illegal drugs (P7.58 billion), smuggled agricultural products (P3.78 billion), and cigarettes and tobacco (P3.77 billion). — Luisa Maria Jacinta C. Jocson

Oil is everywhere at COP28, vexing those seeking its demise

REUTERS

AT THE WORLD’S most important climate summit, the Organization of the Petroleum Exporting Countries — whose members supply almost 30% of the world’s oil — has a pavilion for the first time.

There, staff were giving out a children’s book about oil. A grey-haired cartoon professor named Riggs takes young readers through topics as arcane as the lightness and sourness of crude, before explaining why oil is important: “Without oil, we would not be able to continue to enjoy the same standard of living.” The book proved so popular that the pavilion ran out of copies just four days into the two weeks of COP28.

Oil and gas executives have tended to keep a low profile at the annual UN climate change gathering, but they have little reason to hide at COP28, hosted by the United Arab Emirates (UAE) — one of the world’s largest oil exporters — and led by the chief executive officer (CEO) of its national oil company. At least 2,456 representatives of the fossil fuel industry have been granted access to COP28, according to an analysis by the “Kick Big Polluters Out” pressure group.

The number is nearly four times higher than in Sharm El Sheikh last year. If they were a country, they would outnumber all national delegations at the conference except for Brazil and the UAE.

Heads of major oil companies have attended as part of country delegations. The CEO of TotalEnergies SE, Patrick Pouyanne, is part of the French delegation, while Darren Woods, CEO of Exxon Mobil Corp., is accredited to the UAE’s. Other industry representatives attend under the umbrella of influence groups such as the International Emissions Trading Association, which registered at least 110 people for the summit.

As COP28 enters its final few days, the most contentious issue is whether the final agreement will pledge to phase down fossil fuels. To many of the thousands of climate activists among the 100,000 or so people registered to attend, the prominence of the oil and gas industry is a travesty — giving the industry most responsible for climate change a seat at the table.

Oil exporters are pushing back. Saudi Energy Minister Abdulaziz bin Salman said this week that the text shouldn’t agree to a phase down, while OPEC’s secretary-general wrote to members asking them to resist the idea.

“You don’t invite the tobacco lobbyists to a health convention when you’re writing health policy,” said Emily Lowan of Climate Action Network Canada. “They have clear stated interests against the very premise of these negotiations, at this COP in particular, related to agreeing on the language on the phase out of fossil fuels.”

Others take industry’s statements of good intent at face value and argue the coalition tackling the climate crisis needs to be as broad as possible. Either way, there’s no way of avoiding oil and gas at the giant Expo park hosting COP28 on the outskirts of Dubai.

From luncheons to panel discussions in country pavilion panels and high level declarations, oil and gas is making its case. Industry-linked events often focus on technologies such as carbon capture and making fossil fuel extraction “greener.”

At IETA’s two-story “BusinessHub,” where there’s a Carbon Market Networking Lounge, a Partners Private Lounge, fruit bowls and an espresso machine, carbon capture was at the center of discussions. The group’s 110 registered attendees represent companies ranging from Norway’s Equinor to Shell Plc. The sign welcoming visitors lists Chevron Corp., America’s No. 2 oil company, as a partner.

Back-to-back events on carbon capture and storage coincided with a networking luncheon for a coalition of Canadian industry leaders. Avik Dey, CEO of Capital Power, a utility with gas- and coal-fired power plants, is attending COP with the US-based Business Council for Sustainable Energy, an association whose members include the American Gas Association.

“I’m super excited to be here because the heavy-emitting industries are here and being part of the conversation,” said Dey, whose badge lists him as an observer. “I think mankind is the problem. We’re all part of the problem, so all of us need to be part of the solution.”

For industry representatives, COP presents a chance to be in the same room with potential partners and government officials with whom it might take weeks to get a meeting back home. Ministers, CEOs and corporate strategists sip coffee in the same pavilions and cram together in the same panel audiences, where it’s easy to strike up an informal chat.

By keeping Sultan Al Jaber as both head of Abu Dhabi National Oil Co. and president of the climate summit, the United Arab Emirates had given industry a green light, said Richard Merzian, a director at an Australian renewables industry association and former COP negotiator for Australia.

“What I see now is a proliferation of these spaces to create more legitimacy for these delay tactics,” Mr. Merzian said. “Carbon capture and storage is a technology invented by the oil industry in order to push C02 down and push oil up.”

But Al Jaber, who’s always made plain his belief that his industry should be part of the situation, put oil and gas at the heart of one of signature achievements at COP28. He persuaded more than 40 oil and gas companies, including Exxon, Total and Shell, to join an Oil and Gas Decarbonization Charter. It’s controversial because it doesn’t commit members to reductions in oil and gas production, but they will have to all-but-stop emissions of methane, a super-harmful greenhouse gas, by 2030. That could have a tangible impact on global emissions.

“We must do all we can to decarbonize the energy system we have today,” Al Jaber told delegates last week.

And he has plenty of supporters as well as detractors.

The “UAE brought the energy sector into the room to have, for the first time, inclusive real dialogue about the transition, supply-demand dynamics, about what is really difficult and what is relatively easier in terms of wins, like the methane pledge,” said Jay Collins, vice-chairman of corporate and investment banking at Citi.

But at times, the irony seems almost too much. At one event, the CEO of Libya’s National Oil Co. launched a new sustainability plan, complete with glossy brochures promising the reduction of gas flaring by 2030. In an interview after the event, the CEO said the company was seeking to increase production by one hundred thousand barrels a day by the end of next year and was pursuing a plan to get daily production to two million barrels by 2026.

The industry’s boldness has also caused tension with renewables groups and climate activists.

In one part of the Blue Zone, the Beyond Oil and Gas Alliance, a coalition pushing renewable energy, shares a makeshift wall with the Clean Resource Innovation Network (CRIN), a group that “unites Canada’s oil and gas industry, innovators, technology vendors, academia, research institutes, financiers and government,” according to its LinkedIn page.

At yet another carbon capture panel in the CRIN pavilion called “Capturing Your Attention: Sharing Carbon Capture & Storage Knowledge,” panelists Dey from Capital Power and Kendall Dilling, a soft-spoken oil executive who also chairs Canadian oil sands companies group Pathways Alliance, faced critical questioning from an audience where “Emissions cap” baseball hats featured prominently. Above the panelists, a television screen showed an image of snow-capped mountains and a still blue lake, overlaid with “CRIN” in fine lettering.

Attendees said that Pathways had been lobbying to introduce loopholes and a delayed timeline to the Canadian emissions cap plan. Half way through the panel, a group of activists stood up and walked out of the CRIN pavilion, holding signs that read “No to Carbon Capture. Stop Big Oil Greenwashing.” There were enough audience members who stayed, many of them part of the Canadian energy industry, to fill the empty seats. — Bloomberg

Ayala Foundation enters tie-up with trade events agency Global-Link MP

AYALA GROUP’S social development arm signed a partnership agreement with international trade marketing agency Global-Link MP Events International, Inc. to increase the visibility of its programs.

“We are grateful to Global-Link MP for sharing their expertise so that we can build stronger partnerships in the Philippines and beyond,” said Ayala Foundation President Antonio G. Lambino II at the signing ceremony late Thursday.

“This will enable us to combine efforts with experts in various development sectors to increase the impact of our work in partner communities,” he added.

Mr. Lambino said that the partnership with Global-Link MP will allow Ayala Foundation greater reach and increase the impact of its programs.

“For instance, Global-Link MP runs many trade shows. So, can those trade shows be sites for the products that our local communities produce? Can we provide more access to markets to them?,” he said.

“Can Global Link MP events be a site where (our partners) will meet designers who will help evolve their designs so that they can be exported? So those kinds of stakeholder connections, that’s what we’re looking for,” he added.

Mr. Lambino said that around 800 households in Palawan and 80 households in the Iraya Mangyan village could benefit from this partnership.

“But the programs will not just be limited to the indigenous people groups and the livelihood projects. There are also education and leadership programs and we have around 1,900 alumni from the Ayala Young Leaders Congress,” he said. 

Global-Link MP has over 25 local and international annual events in its portfolio.

Global-Link MP Chairman and Chief Executive Officer Patrick Lawrence Tan said that “working with Ayala Foundation is not only about corporate social responsibility, but a strategic move born from the understanding that social impact and business success are intertwined.

“We are excited to work with Ayala Foundation to innovate and create experiences that uplift the lives of more Filipinos,” he added. — Justine Irish D. Tabile