UN Climate Envoy Announces New Initiatives to Increase Access to Renewable Energy
Michael R. Bloomberg, the UN Special Envoy on Climate Ambition and Solutions, announced at the United Nations (UN) Climate Action: Race to Zero and Resilience Forum efforts to accelerate the clean energy transition in developing nations. The efforts would target economies with large potential solar, wind, and other renewable energy capacities. The initiative is in addition to the ongoing energy transition programmes in the EU and 17 other nations. The UN programme aims to invest more in clean energy globally, end the coal era, and raise living standards in emerging economies, especially as they require support to realize their potential for producing clean, dependable energy.
The plan comes after devastating heat waves across Asia and Europe, wildfires across the Americas, historic floods in Pakistan, droughts, and food insecurity in Africa. By switching to renewable energy, these developing countries will be able to break their dependence on fossil fuels, generate jobs, upgrade their infrastructure, and give their citizens access to reliable power at reasonable prices. However, several analysts wonder if this is the best avenue to achieve the time-sensitive net zero emission by 2050 as more focus should be on the G20 countries, which are responsible for more than 80% of global emissions (see chart 1 below).
Chart 1: Annual CO2 Emissions of Developed nations Vs. Developing nations 2020 (billion tonnes)
Analysts Mull Financial Stability as FG Plans to Issue N402bn Promissory Notes
To finance some capital projects, the President of Nigeria, Mohammed Buhari, seeks approval from the senate to issue N402bn promissory notes. According to the letter, N375bn will be allocated to settle outstanding claims owed to exporters, while the remaining will be split among some states. Yobe state to receive 18.62bn to offset funds the state has spent on the execution of five different federal road projects, N6.70bn for Kebbi state and N2.70bn for Taraba state for the construction of Federal Road. Analysts are concerned about the country’s mounting debt considering the current reliance on borrowing to finance recurrent expenditure and capital projects as revenue dwindles.
Grain Outlook Poor as Economists Review the Market Towards Q4 2022
Vietnam’s agricultural minister assured the market that the country has not agreed with Thailand to raise rice prices jointly. When India passed a ban on broken rice exports and a 20% export levy on paddy, white, and brown rice, rice prices were expected to rise, which could cause a shift in trade patterns. India is the highest exporter of rice, with exports of about 40% of total global rice exports. The ban from India could also impact the prices of wheat, the third most consumed food in the world behind rice and Corn.
Russia’s claim that it cannot export its commodities because of sanctions from European Nations could further weigh on wheat prices, but Ukraine’s recent harvest could serve as a deterrent to the rising prices. The US corn condition declined by 1% as the Corn is 87% dented compared to 92% in the last season, 40% mature compared to 54% last season, and 7% harvest compared to 9% last year. All indications point to a possible price increase in Rice, Wheat, and Corn in the fourth Quarter (see chart 2 below).
Chart 2: Wheat and Corn Price Movement December 2021 – September 2022
CBN Approves Access Corporation’s Hydrogen Payment Platform
The Central Bank of Nigeria (CBN) has finally approved the license of a new payment subsidiary of Access Holdings Plc called Hydrogen Payment Services Company Limited. Hydrogen is envisioned as Africa’s most influential business network to provide switching and payment processing services to financial service providers and other stakeholders. The hydrogen payment platform aims to create a globally connected community and ecosystem. Analysts expect that the new subsidiary will, in turn, help the CBN’s push to deepen the use of digital banking in the country
Cryptocurrency Prices Remain Turbulent as Global Monetary Policies Stay Tight
The crypto market has continued to fluctuate due to challenges caused by the monetary authorities’ hawkish posture. The value of Bitcoin, Ethereum, and major altcoins has fluctuated, with investors selling their coins for little profit or loss. Bitcoin gained +0.10% in the last 24 hours, moving from a low of US$18,290.32 to a high of US$18,939.18. Among the top cryptocurrencies trading sideways, Ethereum struggled as it retested the US$1200 level, dropping by -4.19% from its 24-hour high of US$1,384.48. While many coins are falling, some NFTS coins are rising, with ApeCoin maintaining its gains since it fell from US$4.2486 on September 7 (see chart 3 below).