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Will the rich countries keep their word this time?

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The United Nations (UN) Climate Change Conference (COP27), held in Sharm El-Sheikh, Egypt, ended yesterday morning.

At the end of the summit, COP27 President and Egyptian Foreign Minister Samih Shukri, announced at the press conference that the coordination process has begun for the transfer of the presidency of next year’s COP28 to the United Arab Emirates (UAE).

Shukri also announced that an agreement was reached at the conference to create a fund dedicated to the losses and damages caused by climate change in poor countries.

While poor and developing countries have been demanding this fund and a payment schedule for nearly 30 years, rich countries such as the United States and European Union (EU) members, which alone have the most responsibility for global and historical greenhouse gas emissions, have stood up to the agenda of creating funds and played for time.

The climate crisis is felt the most by the countries least to blame, so compensation is central to climate justice demands.

The fact that the countries and societies, which contributed the least to the greenhouse gases that warm the planet, suffered the most and were least equipped to cope with death and destruction was once again raised at this summit. One of the most important success criteria of the summit was the decisions expected to be taken in this regard.

The West is on at China

While the United States and EU countries are blocking the idea because they fear they may face huge payments and be held legally liable for historic greenhouse gas emissions, they also do not want the fund to go to states on the United Nations list of developing countries, such as China.

The EU then proposed to “set up a special fund for covering loss and damage in the most vulnerable countries, funded from a broad donor base.” Under this proposal, the loss and damage fund will be contributed not only by the wealthiest nations that have contributed the most to historic emissions, such as the United States and European countries, but also by emerging economies, such as China, whose emissions have risen in modern times.

However, in previous proposals, China was on the side of benefiting from the fund, not contributing to the fund. Beijing advocates the principle of “common but differentiated responsibility” in this regard. China has no liability for loss and damage, Beijing says, while arguing that they are already helping and are willing to help developing countries to increase their capacity to adapt through South-South Cooperation. Beijing denies the pressure of Western countries in this regard.

Therefore, this issue stands out as one of the important debates between China and the U.S. at climate summits.

Scope of the agreement remains unclear

Despite these debates, about 200 delegates in COP 27 reached agreement on the establishment of a loss and damage fund. However, there are serious questions about the scope of the agreement and whether it will be implemented.

Under the agreement, a transitional committee involving representatives of 24 different countries, will work over the next year to determine the form of the fund, which countries will contribute and where the money should go. The committee is expected to hold its first meeting before March 2023. The operational details of the fund will be determined at next year’s COP28 in Dubai. Apart from this general framework, many details remain unclear.

Officials have warned that the agreement on loss and damage is part of a broader agreement that is still under negotiation.

Rich countries, meanwhile, are demanding stronger commitments from developing countries to reduce emissions over the next decade to meet the climate targets of the Paris agreement, which calls on governments to limit global warming to well below 2°C and preferably 1.5°C.

According to the Global Times, formal talks between Beijing and Washington, and even face-to-face discussion, will take place after COP27 is concluded.

It may not be put into practice

Although poor countries are pleased that a decision on the fund has finally been taken, many are concerned about whether the decisions taken will translate into meaningful action. As a matter of fact, these concerns have a point. In 2009, developed countries committed to giving developing countries $100 billion annually by 2020 to help them reduce emissions and adapt to climate change. However, this commitment was not fulfilled and was constantly postponed.

Experts also point out that the details of how to implement the mechanism in line with the decision taken and how to quantify the damage caused by the climate crisis are not clear, stressing that this will make the mechanism difficult to operate and leave room for rich countries to maneuver.

It is unrealistic to expect the United States, historically the largest emitter of greenhouse gases, to lead efforts to provide climate finance for the developing world, which has blocked proposals for loss and damage to date. Considering that the U.S. budget for the fund should be approved by Congress, it may not even be possible for Washington to put money into the fund, let alone lead the way.

‘The empty promises of the West’ 

Criticizing the Western world for their indifference to the agenda of loss and damage, Scottish Prime Minister Nicola Sturgeon stressed that this is a fundamental question of climate justice and that the “rich world” has a responsibility here.

Despite the deteriorating effects of the climate crisis, the West, and especially the EU, has forsaken its responsibility with “empty promises and sweet nothings,” Sturgeon said.

From ‘phased out’ to ‘phased down’

On the other hand, after the COP26, when the ‘phase-out of coal’ was first mentioned, demands for the commitment to encompass all fossil fuels this year were not accepted. The demand for “phasing out of all fossil fuels” was not included in the final text.

Furthermore, the reference to “low-emission and renewable energy” in the text was interpreted as an element that could lead to the development of more sources of natural gas (as it produces less emissions than coal).

Following the sanctions against Russia, the European Union’s retreat from its goals due to the ongoing energy crisis has also attracted criticism within this context. Last year at COP26, discourses and commitments about “phasing out” coal were replaced by “phasing down” this year.

Parade of fossil fuel lobbyists

One of the most prominent criticisms of COP27 was the intense participation of fossil fuel lobbyists. Powerful fossil fuel companies swarmed the summit. 636 people linked to the oil and gas industry reportedly attended the summit.

The sponsorship of COP27 by Coca-Cola, which produces about 120 billion waste plastic bottles every year and uses fossil fuels in the process, was discussed widely on social media.

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TÜDAV proposes Aegean cooperation between Türkiye and Greece

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As a result of the Athens Declaration on Friendly Relations and Good Neighborhood signed between Mitsotakis and President Erdoğan during his last visit to Greece, both sides declared that they were determined to maintain friendly relations and peaceful coexistence.

During President Recep Tayyip Erdoğan’s last visit to Athens, the stage was set for a crucial dialogue aimed at thawing the frosty relations between Türkiye and Greece. In a recent follow-up meeting in Ankara, Erdoğan and Greek Prime Minister Kyriakos Mitsotakis continue their discussions, focusing on enhancing bilateral cooperation, particularly in the strategic and often contentious Aegean Sea. This series of high-level talks marks a significant effort by both nations to bridge divides, address longstanding disputes, and promote regional stability through collaborative initiatives in the Aegean, heralding a new era of cooperation between the two neighboring countries.

However, previously both sides also gave the message that it was not possible to expect the controversial issues between the two countries to be resolved in a short time. Finally, Greece announced that it would declare 2 marine parks, one in the Ionian Sea and the other in the Sea of Islands, in order to protect biodiversity and marine ecology within the scope of the 9th Our Ocean Conference (OOC) held in Athens on 16-17 April.

In line with these efforts, the Turkish Marine Research Foundation (TÜDAV) has proposed that both countries work together to establish marine parks in the Aegean Sea. This policy recommendation aims to not only protect the rich biodiversity of the region but also to strengthen environmental and scientific collaboration between Türkiye and Greece, setting a precedent for cooperative governance of shared marine resources.

In its statement on the subject, TÜDAV argued that Türkiye and Greece should cooperate to protect the Aegean Sea. TÜDAV scientists stated that cooperation is needed to primarily protect the four conservation or marine park areas proposed in the Aegean Sea, emphasizing that the Aegean Sea is a sea whose biodiversity has been under threat recently due to factors such as pollution, overfishing, alien species and climate change. Prof. Öztürk believes that Türkiye and Greece, two countries with mutual coasts, should cooperate.

Reminding that the two countries signed a cooperation agreement on environmental problems in 2000, within the framework of bilateral cooperation studies that started in 1988, TUDAV proposes four marine protected areas in the Aegean Sea and proposes cooperation for the declaration of these areas and the establishment of a joint working group on this issue.

Map 1. Areas in the Aegean Sea that are proposed to be jointly declared as marine protected areas or marine parks by the two countries

Stating that according to the Protocol on Specially Protected Areas and Biological Diversity in the Mediterranean of the Barcelona Convention, to which both countries are parties, the parties should call for cooperation before one of the two coastal countries declares a protected area, TÜDAV points out that the two countries have the legal basis for cooperation.

TÜDAV Chairman of the Board and Istanbul University Faculty of Aquatic Sciences Faculty Member Prof. Dr. Bayram Öztürk said, “Sincere cooperation on marine protection in the Aegean Open Sea will benefit both nations. In this way, 30% protection of coasts and seas can be achieved by 2030. In 2013, Türkiye declared an area larger than the island of Cyprus, the Finike Submarine Mountains region, as a protected area. This area is the only open sea protected area in the Eastern Mediterranean and efforts are made to protect approximately 40 marine species. “The same thing can be done jointly in the Aegean Sea.” he said. Öztürk underlined that the Aegean Sea does not belong to a single country and said that cooperation should be made to protect biological diversity and living resources.

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US overtakes China as Germany’s biggest trading partner

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The United States overtook China as Germany’s most important trading partner in the first quarter of this year, according to Reuters calculations based on official data from the Federal Statistical Office.

According to the data, Germany’s trade with the United States, the sum of exports and imports, totalled 63 billion euros ($68 billion) in the January-March period, while the figure for China was just under 60 billion euros.

With a volume of 253 billion euros, China was Germany’s largest trading partner for the eighth time in a row, a few hundred million dollars ahead of the US.

“While German exports to the US continued to rise due to the strong economy there, both exports to and imports from China fell,” said Commerzbank economist Vincent Stamer, explaining the change in the first quarter.

“China has moved up the value chain and is increasingly producing more complex goods itself, which it used to import from Germany. German companies are also increasingly producing locally instead of exporting goods from Germany to China,” Stamer said.

Germany has said it wants to reduce its trade with China, citing political differences and accusing Beijing of “unfair practices”. But Berlin has yet to take any major steps towards a policy of reducing dependency.

German imports of goods from China fell by almost 12 per cent in the first quarter from a year earlier, while German exports to China fell by just over 1 per cent, according to Juergen Matthes of the German economic institute IW.

“The fact that the US economy exceeded expectations, while the Chinese economy performed worse than many had hoped, probably contributed to this,” Matthes said.

Sales to the US currently account for around 10 percent of German goods exports. China’s share, on the other hand, has fallen below 6 per cent, Matthes said.

On the other hand, Dirk Jandura, head of the BGA trade association, said: “If the White House administration changes after the US elections in November and moves further in the direction of closing markets, this process could come to a standstill,” pointing out that the trend of Germany’s trade route shifting across the Atlantic could stop.

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BOTAŞ signs LNG deal with ExxonMobil

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Turkey’s Energy Minister Alparslan Bayraktar said state-owned gas network operator BOTAŞ signed an LNG trade agreement with ExxonMobil on Wednesday in a bid to diversify its sources.

Bayraktar said in a statement on social media platform X: “The US is one of the important countries from which we already receive LNG. With this agreement, which is intended to be long-term, we will take another step towards diversifying our resources,” Bayraktar said, adding that the agreement was signed in Washington.

Noting that Turkey is among the few countries in the world with its gasification capacity, the minister said, “We will continue to contribute to the energy security of our country and our region.

Bayraktar gave no further details of the deal. The energy ministry did not respond to a Reuters request for comment.

In an interview with the Financial Times in late April, Bayraktar said Turkey wanted to “build a new supply portfolio” in energy procurement and said it was in talks with US fossil fuel giant Exxon Mobil for 2.5 million tonnes of liquefied natural gas (LNG) worth about $1.1 billion.

Bayraktar said Turkey was also in talks with other US natural gas producers for LNG deals, stressing that Turkey wanted to “diversify” its natural gas supplies before some of its contracts with Russia expire in 2025 and with Iran in 2026.

In addition to Russia, Azerbaijan and Iran, Turkey imports LNG from Algeria, Qatar, the US and Nigeria.

Russia is the country’s largest gas supplier. Last year, more than 40 per cent of its consumption was met with gas from that country.

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