G7 finance ministers agree to impose price cap on Russian oil

 

The ministers from the club of wealthy industrial democracies confirmed their commitment to the plan after a virtual meeting

Group of Seven finance ministers agreed on Friday to impose a price cap on Russian oil aimed at slashing revenues for Moscow’s war in Ukraine while keeping crude flowing to avoid price spikes, but their statement left out key details of the plan.

The ministers from the club of wealthy industrial democracies confirmed their commitment to the plan after a virtual meeting. They said, however, that the per-barrel level of the price cap would be determined later “based on a range of technical inputs” to be agreed by the coalition of countries implementing it.

“Today we confirm our joint political intention to finalise and implement a comprehensive prohibition of services which enable maritime transportation of Russian-origin crude and petroleum products globally,” the G7  ministers said.

The G7  consists of Britain, Canada, France, Germany, Italy, Japan and the US.

The ministers said they would seek a broader coalition of oil importing countries to purchase Russian crude and petroleum products only at or below the price cap.

Enforcing the cap would rely heavily on denying London-brokered shipping insurance, which covers about 95 per cent of the world's tanker fleet, and finance to cargoes priced above the cap. But analysts say that alternatives can be found to circumvent the cap and market forces could render it ineffective read more

Despite Russia's falling oil export volumes, its oil export revenue in June increased by $700 million from May due to prices pushed higher by its war in Ukraine, the International  Energy Agency said last month.

Global plastic waste is set to almost triple by 2060: Report

 Global plastic waste is set to almost triple by 2060, with around half ending up in landfills and less than a fifth recycled, according to a new report released on Friday.

The Organization for Economic Co-operation and Development (OECD) estimates that global plastics consumption will rise from 460 million tons in 2019 to 1,231 million tons by 2060 “in the absence of bold new policies, a faster rise than most raw materials.”

“Growth will be fastest in developing and emerging countries in Africa and Asia, although OECD countries will still produce much more plastic waste per person (238 kg per year on average) in 2060 than non-OECD countries (77 kg),” the OECD said.

Plastic waste is expected to surge from 353 million tons in 2019 to 1,014 million tons in 2060, leading to plastic leakage to the environment doubling to 44 million tons a year, while the amount of plastics in oceans, rivers, and lakes will more than triple, according to the report.

“Most pollution comes from larger debris known as macroplastics but the leakage of microplastics (synthetic polymers less than 5 mm in diameter) from items like industrial plastic pellets, textiles, and tyre wear is also a serious concern,” read the report.

The world needs “much more stringent and globally coordinated action” if plastic pollution is to be eliminated, as envisaged by the UN Environment Assembly, said Mathias Cormann, secretary-general of the OECD.

The OECD laid out suggestions on how actions to cut greenhouse emissions “could reduce plastic pollution given the interplay between the plastics lifecycle, fossil fuels and climate change.”

Taxes on plastics, incentives to reuse and repair plastic items, improved waste management infrastructure and increased litter collection rates are among some of the policies recommended to reduce the environmental impacts of plastics.

If implemented, these “concrete policies … could significantly curb – and even eliminate – plastic leakage into the environment,” Cormann added.​​​​​​​