2025-11-06 11:27

Google to buy 200,000 tons of carbon offsets from Mombak Rigorous reforestation projects fetch 10 times price of REDD credits Mombak gets nod from carbon removal group founded by tech companies BELEM, Brazil, Nov 6 (Reuters) - Google has struck its biggest carbon removal deal, agreeing to finance restoration of the Amazon rainforest with Brazilian startup Mombak, as big tech hunts for high-quality credits to offset emissions tied to energy-hungry data centers. The companies told Reuters the deal would offset 200,000 metric tons of carbon emissions. That is four times the volume of a pilot offtake agreement in September 2024 with Mombak, Google's sole provider of forestry carbon credits. Sign up here. Both companies declined to comment on the value of the deal. The agreement highlights how big tech is looking for ways to soften the climate impacts of its huge investment in power-intensive data centers for AI, driving demand to offset carbon emissions through Brazil's nascent reforestation industry. Last year, Alphabet's (GOOGL.O) , opens new tab Google committed more than $100 million to an array of different carbon capture technologies, from enhanced rock weathering and biochar to direct air capture and a project making rivers more acidic. But when it came time to double down, it was hard to beat the efficiency of planting trees. "The most derisked technology we have to reduce carbon in the atmosphere is photosynthesis," said Randy Spock, Google's head of carbon credits and removal, citing the process by which plants use sunlight, water and carbon dioxide to produce oxygen and glucose. Brazil, which is hosting the United Nations climate summit known as COP30 in the Amazon city of Belem this month, has touted the talks as the "Forest COP," promoting conservation efforts including a proposed new fund for tropical forests. PUSH FOR CREDIBLE OFFSETS Much of Google's greenhouse gas emissions come from the electricity it buys for its data centers and offices. Those so-called market-based scope 2 emissions more than tripled from 2020 to 3.1 million tons of CO2 equivalent last year, according to the company's latest environmental report. Google has steered clear of REDD credits, Spock said, which reward developers for preserving parts of the forest that would otherwise be destroyed. That market has been rattled by alleged fraud and ties to illegal loggers in Brazil. "The reason we quadrupled down on Mombak is they've got a very credible approach," he said. Mombak, which turns degraded pastureland back into jungle, is benefiting from a "flight to quality," its co-founder and Chief Executive Officer Gabriel Silva said. "Buyers were previously buying carbon credits but didn't know what they were buying. So they got involved in poor-quality, sometimes fraudulent projects," he said. To raise the bar for nature-based carbon removal, Google joined forces last year with Meta, Salesforce, McKinsey and Microsoft, the biggest buyer to date, creating a group of buyers called the Symbiosis Coalition. The coalition, which said on Thursday it had expanded to include Bain & Company and REI Co-op, has vowed to contract over 20 million tons of nature-based carbon offsets by 2030 that meet its more rigorous scientific standards. That includes demands for conservative and transparent carbon accounting standards, long-term preservation and benefits for biodiversity and local communities. Of 185 projects reviewed by the coalition, Mombak's is the first to meet those standards. Brazil is the country with the most projects seeking the coalition's endorsement, said Symbiosis Executive Director Julia Strong, adding that she expected more to clear the bar soon. Still, a scarcity of credits meeting the highest standards - and the deep pockets of those willing to pay for them - have pushed up prices. While REDD credits can retail for under $10 per ton of carbon dioxide offset, Brazil's new reforestation startups have fetched more than $50 and even $100 per ton. "Companies are getting more efficient, in terms of producing at lower prices. We are on that path," said Silva of Mombak. "But right now there's way more demand than supply." https://www.reuters.com/sustainability/cop/google-deal-amazon-reforestation-makes-brazilian-startup-its-top-carbon-credit-2025-11-06/

2025-11-06 11:25

Bank keeps interest rates on hold as expected Eyes cut 'in the course of the coming year' Norway inflation exceeds target Currency slightly stronger after rate decision OSLO, Nov 6 (Reuters) - Norway's central bank kept its policy interest rate on hold at 4.0% on Thursday to combat inflation, as unanimously predicted by a Reuters poll, and said it was in no hurry to cut even if further easing was likely in the year ahead. "Inflation has come down quite significantly from the peak but it's still too high, it's above our target," Norges Bank Governor Ida Wolden Bache told Reuters on the sidelines of a central bank press conference. Sign up here. "It will take some time before it is appropriate to lower the rate," she said. The Norwegian crown currency strengthened to 11.71 against the euro by 1049 GMT, from 11.72 just before the announcement. INFLATION REMAINS ABOVE TARGET Norges Bank began an easing cycle in June and cut its key rate again in September saying it aimed to reduce it once a year for the next three years, a slower pace than previously planned. The monetary policy committee on Thursday said the outlook remained uncertain but that if the economy evolves broadly as expected the policy rate will be reduced further in the course of the coming year. All 27 economists in an October 30-November 3 poll had expected no policy change. Norway's core inflation for September eased slightly to 3.0% year-on-year, down from 3.1% in August, data from Statistics Norway showed last month, but that was still above the official target of 2.0%. "Since the previous meeting (in September), we have not got new information that would indicate that the inflation outlook is significantly changed," Bache told Reuters. The future rate path, which was not updated on Thursday, is due to be revised in December. The U.S. Federal Reserve last week cut its key policy rate by 25 basis points while the ECB kept rates on hold. The central bank of Sweden, Norway's neighbour and one of its top trading partners, kept its key policy rate unchanged at 1.75% on Wednesday as expected. https://www.reuters.com/business/finance/norway-central-bank-keeps-rates-hold-expected-2025-11-06/

2025-11-06 11:22

LNG sales agreements rose sharply in first 10 months of 2025 Buyers avoiding Russian gas willing to pay higher fees to US producers Some fear LNG glut, others say gas needed to power data center growth HOUSTON, Nov 6 (Reuters) - U.S. liquefied natural gas developers are on track this year to ink the second-highest annual number of binding sales contracts, despite industry concerns about increasing capacity and rising costs. In the first 10 months of 2025, U.S. LNG producers signed sales and purchase agreements (SPAs) for 29.5 million metric tonnes of LNG per year, more than four times the 7 mtpa signed in all of 2024, data from consulting firm Rapidan Energy Group shows. Sign up here. The SPAs are used by project developers to raise financing by demonstrating that planned projects can generate positive cash flow with customers locked into contracts for as long as 20 years. The only time more binding agreements were signed by U.S. exporters was in 2022, when Russia invaded Ukraine, according to Rapidan Energy. Many buyers seeking to diversify away from Russian energy are willing to pay higher liquefaction fees that American LNG developers charge to convert natural gas into a liquid that can be easily transported around the world in specialized ships. Companies with LNG trading portfolios are also picking up volumes from American producers. GROWING US LNG OUTPUT STOKES FEARS OF GLUT President Donald Trump returned to office in January with a pro-oil and gas agenda. He has promoted LNG deals in trade talks with Europe, which agreed to buy $750 billion in energy from the U.S. His administration also lifted former President Joe Biden's moratorium on new export project approvals. A flurry of final investment decisions followed that will add new capacity totaling 61.5 mtpa of LNG to an existing export base of 120 million mtpa. Cheniere Energy (LNG.N) , opens new tab, Venture Global (VG.N) , opens new tab, Sempra (SRE.N) , opens new tab, Next Decade and Woodside Energy (WDS.AX) , opens new tab have all greenlit new facilities this year. The U.S. Energy Information Administration expects the country's overall LNG capacity to double by 2029. America could export one third of global LNG by 2030, according to the International Energy Agency. Rapid expansion of U.S. LNG could result in a global glut, with the IEA predicting lower prices. “As new supply comes to market, notably from the United States and Qatar, it should apply downward pressure on prices - offering welcome relief for gas importers worldwide,” said IEA Director of Energy Markets and Security Keisuke Sadamori. Similar forecasts of lower LNG prices have come from producers including Total (TTEF.PA) , opens new tab and Shell (SHEL.L) , opens new tab, yet some investors in new export facilities like Woodside (WDS.AX) , opens new tab and Venture Global (VG.N) , opens new tab say predictions of a glut are overstated. "We're very bullish on LNG demand for the long term," Woodside CEO Meg O'Neill said at an event in September. Venture Global CEO Mike Sabel predicts demand growth as data centers and more Asian countries replace coal with LNG for electricity generation. "I think data centers are going to be a massive source of new incremental demand, but you are short today on gas production capacity," Sabel told Reuters. CONSTRUCTION COSTS RISING Labor inflation caused by shortages of skilled workers and rising prices of equipment due to tariffs are increasing construction costs, according to Poten and Partners business intelligence head Jason Feer. "Costs have increased up to 20% in some instances, and it makes some projects ... uncompetitive," TotalEnergies CEO Patrick Pouyanné said on an earnings call last month. Venture Global has reported cost overruns at its 27.2 mtpa Plaquemines LNG facility, while Golden Pass, a joint venture between Exxon Mobil (XOM.N) , opens new tab and QatarEnergy (QATPE.UL), is over budget and behind schedule. To keep projects economically viable, developers have been seeking, and so far getting, liquefaction fees that are up around 15% on average from two years ago, Feer said. Venture Global, considered a low-cost supplier, is charging $2.30 per million British thermal unit (mmBtu) for liquefaction in new contracts. The fee is higher than the $1.75 per mmBtu it charged for LNG out of Calcasieu Pass when that facility first contracted sales, two people with knowledge of its pricing told Reuters. Cheniere Energy, the largest U.S. LNG producer, is charging a premium of over $2.75 per mmBtu. Woodside is offering 10-year contracts coming in at around $2.90 per mmBtu, said Feer, adding that fees across the broader market had averaged $2 per mmBtu in 2023. HIGHER PRICES NOT STOPPING BUYERS The window may be closing for more LNG projects to be developed in the U.S. at this time because of rising costs and the prospect of lower global prices, according to Rapidan Energy director of global gas Alex Munton. "This bull run must come to an end, it cannot continue forever," said Munton. Still, buyers including ENI (ENI.MI) , opens new tab and Petronas [RIC:RIC:PETGL.UL] are snapping up new long-term contracts even in the face of higher liquefaction fees and potentially lower spot prices. JERA, one of Japan’s largest power generators, says it wants U.S. gas to diversify and avoid an over-dependence on Australia and to meet demand growth spurred by data centers and AI. TotalEnergies' Pouyanné said many large players are focusing on the bigger picture and locking in new volumes to trade, even if fees are rising. As the market grows, so do trading and arbitrage opportunities. Even some easing of the market could still create opportunities for more price sensitive countries in Southeast Asia to move away from coal and boost global demand for LNG, the IEA said. https://www.reuters.com/business/energy/us-lng-producers-ink-near-record-contract-volumes-even-fees-climb-2025-11-06/

2025-11-06 11:21

Nov 6 (Reuters) - Futures linked to Canada's main stock index were little changed on Thursday, as higher commodity prices helped offset broader market caution following the benchmark's strongest session in three weeks. The futures on the S&P/TSX index were flat as of 05:54 a.m. ET. Gains in oil, copper and gold prices lent support, keeping prices from slipping into negative territory. Sign up here. The S&P/TSX composite index (.GSPTSE) , opens new tab closed 325.66 points, or 1.1%, higher at 30,103.48 on Wednesday, marking its biggest single-day gain since October 14. The rebound followed a string of losses and, if sustained, could push the index's weekly performance into positive territory. Wednesday's rally was underpinned by upbeat U.S. economic data. Services sector activity rose to an eight-month high in October, driven by solid growth in new orders, while private payrolls increased by 42,000, beating expectations. The data helped ease investor concerns after top Wall Street banks warned of a potential equity market correction, citing stretched valuations. Those warnings had dragged the TSX to a one-month low on Tuesday. Gold soared above the $4,000-per-ounce level due to concerns over a prolonged U.S. government shutdown and a weaker dollar. Oil prices edged higher, and copper rose as well, snapping a four-day decline, as selling pressure eased. On the tariff front, U.S. Supreme Court justices raised doubts over the legality of U.S. President Donald Trump's sweeping tariffs in a case that could have implications for markets across the globe. On the corporate front, Canadian Natural Resources (CNQ.TO) , opens new tab posted a fall in third-quarter profit, as weaker commodity prices weighed on the results. https://www.reuters.com/business/tsx-futures-flat-following-strongest-rally-three-weeks-2025-11-06/

2025-11-06 10:55

BENGALURU, Nov 6 (Reuters) - The Indian rupee will trade in a narrow range against the U.S. dollar over the coming months, a Reuters poll of FX analysts showed, as the Reserve Bank of India reverts to regularly intervening in the currency market to curb sharp swings. Earlier this year the rupee declined and traded in a wider band even though the dollar softened, fueling speculation the RBI was loosening its tight grip on the currency. It is down around 3.4% on the year, one of Asia's worst performers. Sign up here. However, recent positioning and renewed RBI dollar sales via state-run banks suggest the central bank is once again relying on its familiar tools to limit excessive volatility, weakness and also strength. "I don't know why the RBI does this shorting business and keeps the market under control. Let it be open; let things go as per the market's requirement… What is the point of keeping the rupee at a particular level and then shorting it (USD/INR) to bring it back down?" said Anil Bhansali, head of treasury at Finrex Treasury Advisors. In September net short dollar forwards rose about $6 billion to $59.4 billion, the first monthly increase in six months, as the rupee came under renewed pressure. That came after the RBI cut its forward commitments from a peak near $89 billion in February to roughly $53 billion in August. The September rebuild indicates the RBI remains active in the forward and offshore Non-Deliverable Forward (NDF) markets to smooth the rupee's moves. India's central bank says it does not target a specific rate, but its frequent actions to cap both gains and losses come as the currency's three-month implied volatility has slipped to around 3.4%, nearly half the year's peak in May. "The RBI doesn't like volatility, on either side. They've made it clear excessive appreciation could hurt exporters' margins...so they'll try to smooth movements both ways," said Madhavankutty G, chief economist at Canara Bank. High foreign exchange reserves continue to provide a buffer. FX reserves fell $6.92 billion to $695.36 billion as of October 24, RBI data showed. While the latest pushback was seen as a response to growing bearish bets on the rupee, analysts warn prolonged heavy intervention could undermine efforts to attract longer-term foreign capital. "Things will only improve when foreign investors start believing in the India story, which they are still not believing despite the fact we have a great GDP number," said Bhansali at Finrex. While Asia's third-largest economy grew a robust 7.8% in the April-June quarter, economists are skeptical that pace will be sustained. Foreign investors have withdrawn , opens new tab around $17 billion from equities and nearly $1 billion from debt under the voluntary retention route (VRR) this year - a scheme meant to attract long-term overseas money into the bond market. The rupee was forecast to gain only around 0.4% from current levels to 88.25 per dollar by end-January. It was also forecast to stand to 88.08 by end-April and then be at 88.50 in a year, according to the median view of 37 analysts polled November 3-6. Analysis of historical Reuters poll data shows FX analysts have generally held a bullish view on the rupee across all forecast horizons. (Other stories from the Reuters November foreign exchange poll) https://www.reuters.com/world/india/indian-rupee-trade-tight-range-rbi-chokes-off-speculative-bets-2025-11-06/

2025-11-06 10:24

OTTAWA, Sept 7 (Reuters) - Bank of Canada Governor Tiff Macklem on Thursday said interest rates may not be high enough to bring inflation back down to target, sending a hawkish message after holding borrowing costs at a 22-year high a day earlier. The Bank of Canada (BoC) on Wednesday kept its key rate at 5%, noting the economy had entered a period of weaker growth, but said it could hike again should price pressures persist. Inflation has remained above the bank's 2% target for 27 months. Sign up here. Macklem, in a speech to the chamber of commerce in Calgary, Alberta, said one possible reason for inflation staying above target was it might be taking longer for rates to work, but the other possibility "is that monetary policy is not yet restrictive enough to restore price stability." He added: "And unfortunately, the longer we wait, the harder it's likely to be to reduce inflation." The central bank hiked rates by a quarter point in both June and July in a bid to tame stubbornly high inflation. However Macklem said that now "there is little downward momentum to underlying inflation." Canada's gross domestic product unexpectedly shrank an annualized 0.2% in the second quarter, a sign the economy could have already entered a recession as higher rates sink in. But inflation accelerated in July to 3.3% and core measures remained at about 3.5%. "I don't think we're in a recession," Macklem told reporters after his speech. "We're expecting low positive growth." The governor also said monetary policy had been working and the inflation target is now "in sight". "Maybe we don't need to do more, but maybe we do," he said. The Canadian dollar was trading 0.3% lower at 1.3678 to the greenback, or 73.11 U.S. cents, after touching its weakest point in five months at 1.3694. "Officials will remain highly vigilant and attuned to any changes in the direction of the economy and inflation," said Royce Mendes, head of macro strategy at Desjardins Group. The tone of Macklem's speech clashed with the message coming from Canadian politicians in recent days. Before the Wednesday rate decision, three provincial premiers wrote to Macklem urging him to hold rates. Finance Minister Chrystia Freeland, after the announcement on Wednesday, made a rare public comment on monetary policy, calling it "a welcome relief for Canadians." When asked whether the minister's comments were appropriate, Macklem did not answer directly. Freeland has made "very clear that she fully respects the independence of the Bank of Canada," he said. While Macklem did note the economy had been slowing since overheating in the first half of 2022, and that slower growth helped ease price pressures, he stressed the importance of getting inflation all the way down to the 2% target. "Going forward, we will be looking for further evidence that price pressures are easing," Macklem said. Money markets see a 14% chance for a rate hike when the bank next meets in late October. https://www.reuters.com/world/bank-canada-says-interest-rates-may-not-be-high-enough-tame-inflation-2025-11-06/