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    Countries Weigh How to Raise Trillions for Climate Crisis at COP29

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    Low-income countries need at least $1 trillion a year to manage climate change. Donald Trump’s victory just made that more difficult, but options exist.Money: It’s the most contentious subject at the international climate talks this week in Baku, Azerbaijan. How much? From where? What for?Getting big cash commitments would be hard enough without wars, a pandemic and inflation having drained the reserves of rich countries that are expected to help poorer ones cope with climate hazards.It just got even harder. The election of Donald J. Trump as president of the United States all but guarantees that the world’s richest country will not chip in. (Mr. Trump has said he would withdraw from the global climate accord altogether, as he did during his first term.)So now what?Several creative ideas are circulating to raise money for countries to invest in renewable energy and adapt to the dangers of climate change. They include levying taxes, tackling debt and pushing international development banks to do more, faster.The new proposals come with steep hurdles of their own, but the traditional way of raising money — passing around the hat and asking donor countries to make pledges — has failed to meet the need.The last time a climate finance goal was established, in 2009, rich countries promised to mobilize $100 billion a year by 2020. They were two years late in meeting that target, and about 70 percent of the money came as loans, infuriating already heavily indebted countries.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump seems likely to “play nice” on Fed independence, Piper Sandler says

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    Although Powell’s appointment does not end until 2026, media reports have suggested that some of Trump’s advisers are pushing for him to name a successor to the Fed Chair. This person would issue parallel statements, potentially persuading bond markets to take cues not from Powell and the Fed but from the incoming official, the Piper Sandler analysts said.”Presto, the White House can thereby wrestle away the transmission of monetary policy,” the analysts said in a note to clients.Last week, Powell flatly rejected notions that Trump could dismiss him from his post, telling reporters that he would not resign if asked to by the upcoming administration. Powell would also likely lodge a legal challenge to any attempt to oust him before his term comes to a close, the Wall Street Journal has reported.For his part, Trump has not recently indicated any plans to try to force out Powell, saying in June that he would allow Powell to serve out the remainder of his term “especially if I thought he was doing the right thing.” Trump’s advisers are split on how far he should take the matter, the WSJ reported.Bringing forth immediate changes at the Fed will likely be more complicated for Trump than in his previous four-year tenure in the White House, particularly as the institution does not have an open spot on its seven-person board.Meanwhile, any changes at the Fed may threaten to disrupt an ongoing bid by policymakers to defeat inflation without sparking a meltdown in the wider economy or labor demand. Last week, the Fed slashed rates by 25 basis points and said activity remains on a “solid pace,” although markets remain uncertain about the timeline for future reductions.Some analysts have speculated that Trump’s proposed policy changes, especially a blanket tariff on US imports, could drive up inflation and lead the Fed to leave rates at a higher level than initially anticipated. This uptick in volatility may exacerbate the possibility of a clash between the Fed and the new Trump administration, the WSJ said.Still, the Piper Sandler analysts say Trump “seems likely to play nice” regarding the Fed’s independence, arguing that leaving the central bank alone will be the “best and easiest option” for the president-elect to pursue his preference for low interest rates — especially if his policies expand the US federal deficit. A larger deficit could force the government to sell more bonds to finance its debt, possibly driving up overall borrowing costs.”If the new administration is, as everyone expects, unlikely to make a dent into deficits, then numerical inflation goals and central bank independence seem like effective offsets for keeping borrowing costs as low as possible,” the Piper Sandler analysts said. More

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    Ukraine targets value-added production to reshape wartime economy

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    KYIV (Reuters) – Ukraine’s wartime government will boost domestic value-added production to reshape its commodities-driven economy, increase revenue, boost growth and return millions of Ukrainians home, the first deputy prime minister said.Yulia Svyrydenko, who is also the economy minister, told Reuters in an interview that the changes were needed for the country to recover, to rebuild after colossal damage from the war and to bring the economy closer to the European Union.”Our task is to support more Ukrainian production and also support the consumption of Ukrainian-produced goods,” the 38-year-old said in an interview. The government has already introduced a number of programmes offering grants and loans to small and medium-sized businesses, also to help companies relocate to safer areas and created dozens of industrial parks with specialized fiscal measures.”The task is to move away from the economy of raw materials and to build the economy that produces goods with added value. We face challenges to accelerate growth because we need to rebuild and also integrate into the European Union.”The government has raised its forecast for economic growth this year to 4% from the previous target of 3.5% due to better preparedness for energy sector challenges, Svyrydenko said.The government’s conservative scenario for 2025 envisages a 2.7% increase in GDP as the war, security risks, expected energy deficit and staff shortages will limit growth, she said.The central bank is more optimistic about 2025 economic prospects and forecasts 4.3-4.6% growth in 2025 and 2026.LOSSES MOUNT As the war with Russia approaches its 1,000-day mark, human, social, and economic losses mount. Svyrydenko said the government, the World Bank, and other partners were working on a new assessment of economic losses caused by the war.The latest available estimate showed that direct damage in Ukraine reached $152 billion as of December 2023, with housing, transport, commerce and industry, energy and agriculture as the most affected sectors. The total cost of reconstruction and recovery was estimated at $486 billion.”It is 2.8 times higher than our nominal GDP in 2023,” Svyrydenko said.Despite economic growth in 2023 and so far in 2024, the Ukrainian economy was still only at 78% of its size before the invasion in February 2022, Svyrydenko said.The key objective was to make the Ukrainian economy more self-sufficient. “From every hryvnia consumed in Ukraine, 40% is returning to the budget… and it is the issue not only of economic self-sufficiency but also our defence capacity,” she said.Ukraine spends the bulk of its state revenue to fund its defence efforts. Kyiv critically depends on financial aid from its allies to pay for social and humanitarian spending. Nearly $100 billion in Western economic aid has been received so far.Reduced electricity generation capacity after Russia’s intensified bombardments of the Ukrainian power sector has been a key challenge this year and going forward, Svyrydenko said.The government oversaw a massive repair campaign, agreed on higher electricity imports from Ukraine’s Western neighbours, and supported businesses in their steps to boost energy independence by simplifying regulations and allocating funds.Another difficult task was to return Ukrainians home, Svyrydenko said. Ukrainian businesses name labour shortages as one of their top problems as millions of Ukrainians are abroad and tens of thousands of Ukrainian men were mobilised.The government plans to set up a specialized agency to spearhead efforts to return Ukrainians home. For now, 4.1 million Ukrainians have been temporarily registered in Europe, official data showed.Svyrydenko said the government research showed that about 53% were ready to return once the security situation improved and also jobs and housing were available. More

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    Tariffs are hard work

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    Standard DigitalStandard & FT Weekend Printwasnow $29 per 3 monthsThe new FT Digital Edition: today’s FT, cover to cover on any device. This subscription does not include access to ft.com or the FT App.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts10 monthly gift articles to shareGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionEverything in PrintWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisPlusEverything in Premium DigitalEverything in Standard DigitalGlobal news & analysisExpert opinionSpecial featuresFirstFT newsletterVideos & PodcastsFT App on Android & iOSFT Edit app10 gift articles per monthExclusive FT analysisPremium newslettersFT Digital Edition10 additional gift articles per monthMake and share highlightsFT WorkspaceMarkets data widgetSubscription ManagerWorkflow integrationsOccasional readers go freeVolume discountFT Weekend Print deliveryPlusEverything in Standard DigitalFT Weekend Print deliveryPlusEverything in Premium Digital More

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    Trump’s Tariffs Could Deal a Blow to Mexico’s Car Factories

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    Until a few years ago there was not much in this patch of desert 250 miles north of Mexico City but rattlesnakes, coyotes and cactus. Today, it is gleaming evidence of the country’s growing importance as an auto producer.In 2019, BMW completed a vast factory complex here, near the city of San Luis Potosí. As spotless and modern as any in Bavaria, the plant builds luxury sedans for the United States, Europe, China and dozens of other markets.San Luis Potosí is one of several Mexican cities that have become little Detroits, producing Volkswagens, Audis, Mercedes, Fords, Nissans and Chevrolets. In the first nine months of this year, Mexican factories produced more than three million vehicles, of which two million were exported to the United States, according to the Mexican Automobile Industry Association.But Mexico’s pivotal role in the global auto industry is now at risk. President-elect Donald J. Trump has threatened to impose punitive tariffs of 100 percent or higher on cars from Mexico, which would violate a trade agreement his first administration negotiated with Canada and Mexico.The BMW factory in San Luis Potosí has 3,700 employees.Bénédicte Desrus for The New York TimesThe consequences for the auto industry would be profound, affecting the price in the United States of popular models like Ford Maverick pickups, Chevrolet Equinox sport-utility vehicles and several variations of Ram trucks.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Europe Braces for Trump: ‘Worst Economic Nightmare Has Come True’

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    The United States is the biggest trading partner for the European Union and Britain, whose economies could be at risk from the president-elect’s policies.The outlook for Europe’s economy has been disappointing.Last week — after Donald J. Trump’s presidential election — it got worse.Deep uncertainty about the Trump administration’s policies on trade, technology, Ukraine, climate change and more is expected to chill investment and hamstring growth. The launch of a possible tariff war by the United States, the biggest trading partner and closest ally of the European Union and Britain, would hammer major industries like automobiles, pharmaceuticals and machinery.And the need to raise military spending because of doubts about America’s guarantees in Europe would further strain national budgets and increase deficits.In addition, the president-elect’s more confrontational attitude toward China could pressure Europe to pick sides or face retribution.“Europe’s worst economic nightmare has come true,” said Carsten Brzeski, chief economist at the Dutch bank ING. The developments, he warned, could push the eurozone into “a full-blown recession” next year.With political turmoil in Germany and France, Europe’s two largest economies, this latest blow could hardly come at a worse time.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    LNG exports could prove crucial bargaining chip in US-EU trade talks

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    Standard DigitalStandard & FT Weekend Printwasnow $29 per 3 monthsThe new FT Digital Edition: today’s FT, cover to cover on any device. This subscription does not include access to ft.com or the FT App.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts10 monthly gift articles to shareGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionEverything in PrintWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisPlusEverything in Premium DigitalEverything in Standard DigitalGlobal news & analysisExpert opinionSpecial featuresFirstFT newsletterVideos & PodcastsFT App on Android & iOSFT Edit app10 gift articles per monthExclusive FT analysisPremium newslettersFT Digital Edition10 additional gift articles per monthMake and share highlightsFT WorkspaceMarkets data widgetSubscription ManagerWorkflow integrationsOccasional readers go freeVolume discountFT Weekend Print deliveryPlusEverything in Standard DigitalFT Weekend Print deliveryPlusEverything in Premium Digital More