Fwd: Charting a path away from fossil fuels

[Loretta Lohman]

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Climate negotiations are gathering steam as diplomats look toward November’s COP31 summit in Turkey. This week, representatives from almost 60 countries met in Colombia to start hashing out a plan to move away from fossil fuels. Today’s newsletter looks at how the meeting went and the impact the war in Iran had. Plus, a hedge fund manager focused on the energy transition says he’s made money this year by ignoring US President Donald Trump. Subscribe to Bloomberg for unlimited access to all our stories. Small step forward By Fabiano Maisonnave A first-of-its-kind global summit on shifting from fossil fuels ended Wednesday on an optimistic note, with the launch of new “workstreams” to help countries phase out oil, gas and coal and plans for a second meeting next year. “This may be the first multilateral meeting that I find not frustrating,” Colombian Environment Minister Irene Vélez Torres said in the final plenary, to laughter from the audience. “It has been very inspiring.” Preparations ahead of the International Conference on the Just Transition Away from Fossil Fuels in Santa Marta, Colombia. Photographer: Raul Arboleda/AFP/Getty Images Many speakers drew applause during the final plenary session of the conference, held in the coastal city of Santa Marta, Colombia. Paula Andrea Padron, a 10-year-old Colombian girl, gave an emotional speech demanding that countries’ plans on paper “be fulfilled in reality, and that we be allowed to continue being children and to enjoy our childhood.” Afterward, the representative of the Dominican Republic, her voice breaking, had difficulty beginning her own remarks. Organizers hope talks on the practical steps to exit fossil fuels will be ongoing, and that they will complement and bolster the United Nations’ annual Conference of Parties (COP) climate negotiations. The Santa Marta meeting was hosted by Colombia and the Netherlands. “We want this Santa Marta process to strengthen the multilateral process,” said Dutch Climate and Green Growth Minister Stientje van Veldhoven. “It has to be an accelerator,” she said, “organized in the context of the COPs.” The next meeting will be co-hosted by Tuvalu and Ireland in 2027, with the main conference taking place in Tuvalu. COP31 will be held in Turkey later this year. The conference brought together nearly 60 countries, representing about 30% of global GDP. Participants included Germany, France, Italy, Nigeria, Australia, Brazil and the UK. On Tuesday, France released a national road map to wind down its use of fossil fuels. But the three largest emitters — China, the US and India — did not take part, nor did major oil-producing countries such as Saudi Arabia and Russia. Read more Coalition countries 30% The share of global gross domestic product represented by the nearly 60 nations who gathered in Santa Marta Side effect “Those who’ve fought to keep the world hooked on fossil fuels are inadvertently supercharging the global renewables boom” Simon Stiell UNFCCC Executive Secretary Since the US and Israel attacked Iran on Feb. 28, the soaring price of oil and gas has forced governments across the globe to rethink their energy security policies. Ignoring Trump By Ishika Mookerjee A hedge fund manager focused on navigating the energy transition has generated a 39% return so far this year, after adopting a policy of ignoring US President Donald Trump’s signals on the Iran war. US President Donald Trump walks on the South Lawn of the White House in March. Photographer: Aaron Schwartz/Bloomberg Anaconda Invest SA, a boutique hedge fund based in Switzerland, has consistently opted to disregard comments from the White House suggesting a ceasefire may be imminent, according to Renaud Saleur, its founder and chief executive. As a result, he’s stayed long oil stocks based on a bet that chronic undersupply will support demand for years to come. The hedge fund manager’s returns outpaced gains in the S&P Global Oil Index, which is up 31% this year. “In the short term, whenever Trump opens his mouth, you can see the whole party moving as if the flow [of oil] is going to resume overnight,” he said in an interview. In reality, oil prices have stayed high as an actual truce remains elusive, he said. Since the US and Israel attacked Iran on Feb. 28, Trump has often suggested an agreement to end the fighting may be around the corner, while adjusting the terms under which he’d be willing to accept a truce. Those mixed signals have repeatedly rocked markets, with March in particular proving a particularly tough month for many hedge funds and other investors. Saleur, who oversees $150 million at Anaconda, first made it known last month that he and his team were ignoring statements by the US president, arguing that to do otherwise would be unmanageable. Trump “changes opinion 10 times a day,” he said then. Read more Today’s Zero listen Zero New World Order Needs More Cooperation, Not Less A new world order is emerging. Can it tackle climate change? This week on Zero, Gordon LaForge, senior policy analyst at think tank New America, tells Akshat Rathi what comes next, and how progress can still be made on climate. Listen now, and subscribe on Apple, Spotify or YouTube to get new episodes of Zero every Thursday. More from Green Green Atome Sees War Driving Shifts That Boost Low-Carbon Fertilizer Buyers are shifting to long-term contracts amid rising geopolitical risks. Green EDP Bets Big on Australia in $1 Billion Asia Renewables Push It will invest through 2028. Green Doubling of Australian Battery Capacity Cuts Reliance on Gas That’s also lowering electricity costs. 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