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States say EPA CO2 rule is legally flawed

  • Market: Coal, Electricity, Emissions
  • 01/11/18

A US Environmental Protection Agency (EPA) proposal to cut power plant CO2 emissions falls well short of what is required by the Clean Air Act, supporters of more aggressive action say, offering a preview of legal arguments that are likely to be raised in litigation.

A group of 18 state attorneys general yesterday urged EPA to withdraw its proposal to replace the Clean Power Plan, saying it would not lead to any "meaningful" reductions of CO2 emissions from coal-fired power plants and may also lead to higher levels of conventional pollutants.

"The proposed rule, if finalized, would be unlawful. EPA should abandon it and instead focus on implementing and strengthening the Clean Power Plan," the attorneys general said in comments on EPA's Affordable Clean Energy rule.

The group, which includes attorneys general from the District of Columbia and the top legal officials in seven cities and counties, says the proposal would "effectively rewrite the Clean Air Act" with how EPA proposes to set emissions limits for existing power plants. In addition, it fails to set a "best system of emission reduction" required by the law by ignoring a number of ways the states have already lowered power plant CO2, including through emissions trading and renewable energy mandates, the letter said.

"EPA's protestations now that it lacks information about the feasibility or mechanics of such approaches are plainly arbitrary and capricious," they said.

The group also cited a number of other flaws with the proposal, including EPA's own projection that it could lead to 1,400 premature deaths each year from higher SO2 and NOx emissions. Their arguments are echoed in separate comments filed by environmental regulators from many of the same states, as well as environmental groups.

The proposal, issued in August, would replace the Clean Power Plan, crafted by the administration of former president Barack Obama, with a less aggressive regulation EPA says will provide states with more flexibility and help keep coal-fired power plants on line. It would rely on on-site heat-rate improvements to cut CO2 emissions from coal units, rather than the broader suite of measures envisioned in the Clean Power Plan. The comment period on the proposal closed yesterday.

EPA's plan is supported by regulators in coal states including Kentucky and West Virginia, as well as industry groups, which say it will provide greater regulatory certainty than its predecessor.

The rule's "approach provides the necessary flexibility to states to set standards based upon what is reasonably achievable at each power plant upon consideration of costs, remaining useful life and other factors," the National Mining Association said in its comments.

EPA says the new rule could cover up to 600 coal-fired units at 300 power plants and would save the industry about $400mn/yr in compliance costs. The agency estimates its proposal will only reduce power plant CO2 emissions by 1.5pc from projected levels if the Clean Power Plan did not exist, leading to an overall reduction of 33-34pc from 2005 levels by 2030.

Power plant emissions last year were 28pc below 2005 levels, the result of an overall shift away from coal to lower cost natural gas and renewables.


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16/01/25

Brazil to face weaker La Nina conditions

Brazil to face weaker La Nina conditions

Sao Paulo, 16 January (Argus) — Many government agencies expect a weaker La Nina weather pattern in Brazil — partially because of its delayed start — that could help reverse damages from a previous droughtand boost hydroelectric power generation. La Nina conditions emerged a month later than expected, starting only in January, according to national meteorology institute Inmet. Its presence was confirmed by the US' National Oceanic and Atmospheric Administration (NOAA) and is 40pc likely to last until March-May. Delayed La Nina conditions and its weaker effects on Brazil's climate may be linked to the global average temperature hitting an all-time high in 2024 , according to the World Meteorological Organization. La Nina conditions develop when the surface waters in the tropical Pacific Ocean are cooler-than-average across the central and central-eastern regions. But global oceans have been running much warmer for more than a year, which could have delayed the phenomena, according to NOAA. Its usually causes heavier rains in Brazil's northern and northeastern regions, while central-southern states experience drier weather and heatwaves. Brazil, along with South America as a whole, has a history of droughts , agricultural losses , and higher ethanol prices in previous La Nina seasons, but the effects this year will be milder and potentially beneficial to industries in some regions. Agriculture Despite its conditions set to last throughout the first quarter of 2025, Brazil's 2024-25 crop is expected to hit a record 322.3mn metric tonnes (t), up from 297.8mn t in the previous crop, according to national supply company Conab. Still, most forecasts rely on previous favorable conditions during the development of the 2024-25 crop. The soybean crop is set to be 13pc higher than in 2023-24, reaching 166.33mn t. Corn also is expected to increase production, reaching 119.6mn, a 3.3pc rise from the previous crop. But previous dry weather and low precipitation harmed center-southern sugarcane producers, which are responsible for 91pc of the national sugarcane output. The 2024-25 sugarcane crop is forecast to reach 678.7mn t, a 4.8pc decline from the previous season, according to Conab. La Nina's conditions may recover some of the sugarcane crop this season. Northeastern sugarcane production, harmed by last year's drought, will face a period of heavy rains brought by the phenomenon in January. But the sugarcane crop is already projected to decline by 30pc from the previous crop regardless, according to northeastern sugarcane producers' association Unida. The last time La Nina hit Brazil, in 2020-23, roughly 40pc of the main center-south sugarcane crop was at risk from dry weather . Ethanol Ethanol production is set to increase by 1.3pc in 2024-25 from the previous season, according to Conab. Still, sugarcane ethanol is outlined to shrink by 2.8pc thanks to 2024's dry weather and wildfires in the southeast. Electricity La Nina's late arrival enabled the summer rainy period in Brazil. The main hydroelectric reservoirs recovered from last year's drought and will end this month above half of their capacity, according to national grid operator ONS. Regardless of La Nina's presence, most of the central-southern states are expected to have above-average rains in January-April, according to Inmet. Temperatures are also set to stay above the historical average in the central-western, southeastern, southern and northern states. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU 'unlikely' to submit new climate plan to UN in time


16/01/25
News
16/01/25

EU 'unlikely' to submit new climate plan to UN in time

Brussels, 16 January (Argus) — The European Commission is "unlikely" to present the EU's new climate plan including greenhouse gas (GHG) emission reduction targets for 2035 to the UN by the February deadline, according to EU climate commissioner Wopke Hoekstra. "We need a target for 2035 when we walk into [the UN Cop 30 climate summit in] Belem," said Hoekstra. "Whether we have that in February, I think, is unlikely," he said. Countries party to the UN Framework Convention on Climate Change (UNFCCC) must submit their nationally determined contributions (NDCs) — emissions-cut targets — for 2035 by February. Hoekstra added that the commission will have an "ambitious" 2040 target from which it will derive the bloc's 2035 target. He noted an obligation towards parliament to come up with the 2040 target this calendar year. In December, Hoekstra had told EU environment ministers that the legal proposal for 2040 GHG cuts will come " sooner rather than later ". The commission should in February put out new policy documents on clean industry, affordable energy, and roadmap towards ending Russian energy imports as well as on agriculture. Hoekstra indicated that the commission is looking once again at the carbon border adjustment mechanism that is an "important add-on to prevent carbon leakage" from the bloc's emissions trading system (ETS). "We are indeed going to look into both exports but also simplification," Hoekstra said. The commissioner said that he still "needs to see" whether decarbonisation contracts will also be proposed as part of the forthcoming clean industrial deal, now due on 26 February. Shaky start The EU, alongside Canada, Mexico, Norway and Switzerland, has committed to submitting an NDC with " steep emission cuts " that are consistent with the global 1.5°C temperature increase limit sought by the Paris Agreement. Hoekstra reiterated today the need for "reciprocity" on climate goals from other nations. Cop 28 host the UAE and Cop 30 host Brazil have already submitted their new NDCs, and the UK set a target to cut all greenhouse gas (GHG) emissions by at least 81pc by 2035, from a 1990 baseline during the Cop 29 summit last year. But, although Canada was planning to submit its new plan by February, the planned resignation of prime minister Justin Trudeau and a new election due this year could put the country's climate ambitions at risk. Canada in December set a new 2035 climate goal, aiming to reduce its greenhouse gas emissions by 45-50pc by 2035, from a 2005 baseline. Similarly, US president Joe Biden's administration has at the end of last year set a new GHG emissions reduction target for the world's second largest emitter — pursuing economy-wide emission cuts by 61-66pc below 2005 levels by 2035. The country has already submitted a new NDC, but the move is unlikely to hold much weight with president-elect Donald Trump taking office later this month. Some countries including Indonesia and Brunei have highlighted challenges in providing new targets, such as the lack of common models between sectors, financing and economic growth. Colombia indicated that it will submit its NDC by June next year at the country seeks to address the "divisive issue" of fossil fuels, on which its economy is dependent. By Dafydd ab Iago and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump energy nominee vows to expand US LNG


15/01/25
News
15/01/25

Trump energy nominee vows to expand US LNG

Washington, 15 January (Argus) — President-elect Donald Trump's nominee to lead the US Department of Energy (DOE), oil executive Chris Wright, said today he supports expanded LNG production and an "evolution" in energy systems to address climate change. Wright, the chief executive of oil services company Liberty Energy, told lawmakers he would focus on trying to "unleash American energy at home and abroad" and to restore "energy dominance" if confirmed to the position.Wright also said that DOE should support innovation and technology, and revisit federal policies that make it "too easy to stop projects" and very hard to begin them. "Previous administrations have viewed energy as a liability instead of the immense national asset that it is," Wright said at a confirmation hearing with the Senate Energy and Natural Resources Committee. "To compete globally, we must expand energy production, including commercial nuclear and liquified natural gas, and cut the cost of energy for Americans." Trump, after being sworn in on 20 January, is expected to quickly order DOE to lift a pause on licensing of new LNG export facilities that President Joe Biden imposed nearly a year ago. DOE is also responsible for managing the US Strategic Petroleum Reserve, which currently holds 394mn bl of crude, and oversees a vast portfolio of loans and grants for clean energy projects, including an $8bn program intended to support the development of new hubs for clean hydrogen. Wright did not offer in-depth comments on the timeline for issuing licenses to proposed LNG export terminals, which Trump has pledged to approve on his "very first day back." But Wright committed he would consider how licensing more LNG export capacity could affect US natural gas prices, which could increase by 31pc by 2050 if LNG exports are "unconstrained", a study from President Joe Biden's administration found . Democratic lawmakers at the hearing raised concerns about Wright's past comments that downplayed the risks of climate change. US senator Alex Padilla (D-California), whose state is dealing with tens of billions of dollars in damage from ongoing wildfires, cited a LinkedIn post in 2023 in which Wright said alarm about wildfires raging in Canada at the time were simply "hype to justify impoverishment from bad government policies." Wright, who wrote in a separate LinkedIn post that there is no "climate crisis" , said he stood by his 2023 comments on the wildfires. Wright said climate change is a "real and global phenomenon", and that DOE has a role to play by supporting progress in technologies such as nuclear, solar, geothermal and battery storage. "It is a real issue," Write said. "It's a challenging issue, and the solution to climate change is to evolve our energy system." Wright is widely expected to win confirmation in the Senate, where Republicans will have a 53-47 majority once Ohio governor Mike DeWine (R) fills the seat recently vacated by US vice president-elect JD Vance. Trump has said Wright will also serve on his newly created Council of National Energy, which will oversee policies across the federal government related to energy. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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OECD highlights Chile’s green transition potential


15/01/25
News
15/01/25

OECD highlights Chile’s green transition potential

Santiago, 15 January (Argus) — The energy transition holds the potential to boost Chile's stagnant economic growth, the Organization for Economic Cooperation and Development (OECD) said in a report published today. Chile's high renewable energy potential and "vast" lithium and copper reserves put the country in the right position to benefit from the switch to cleaner energy, according to the OECD Economic Survey of Chile 2025. But the country must simplify regulation, boost investment, upgrade electricity transmission and port infrastructure, and increase carbon prices to meet its climate targets and harness the benefits of the energy transition, it said. Chile's massive renewable energy potential is built on its OECD-leading photovoltaic power possibilities and the world's best onshore wind resources in the Magallanes region in the far south, it noted. It needs to streamline permitting processes that often exceed legal permit reviewing times, making "investment approvals costly and lengthy," it said. Chile's tax on carbon emissions of $5/t of CO2e is low by international standards and insufficient for the country to meet its emission reduction targets, the report said. The country plans to increase the tax to $10/t on sites that emit more than 25,000t/yr of CO2. The OECD also highlighted the country's need to ensure fiscal sustainability, foster women's participation in the labour market and accelerate productivity through digitalization and innovation to bolster growth. The country's income convergence with more advanced OECD economies has stalled since 2012, it said. GDP rose by 2.4pc in 2024, up from a 0.3pc increase in 2023, on the back of postpandemic "adequate macroeconomic policies". By Emily Russell Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Seoul may scale down nuclear expansion plans


15/01/25
News
15/01/25

Seoul may scale down nuclear expansion plans

The delay to finalising the country's nuclear goals may make it unfeasible to build sufficient capacity before current assets expire, writes Evelyn Lee London, 15 January (Argus) — South Korea's energy industry has faced a whirlwind of challenges since the impeachment of now-suspended president Yoon Suk-Yeol, with the political turmoil stalling a crucial review of its energy strategy in the national assembly. The government is now seeking to scale down its nuclear expansion ambitions in order to hasten the plan's review. Yoon's surprise declaration of martial law last month was reversed within six hours owing to bipartisan political pressure and widespread protests, which resulted in a national assembly vote in favour of the president's impeachment and his subsequent arrest on 15 January. Yoon is suspended from office pending a ruling by the country's constitutional court — due within six months of the impeachment vote on 14 December. If six out of nine justices vote to uphold the impeachment, Yoon will be removed from office and presidential elections will be held within 60 days. South Korea acted quickly following the martial law declaration, but government action has overall been slowed down by the political turmoil — including on energy policy. The latest draft of its long-overdue electricity plan was completed in June and scheduled to be submitted to the Trade, Industry, Energy, Small and Medium-sized Enterprises and Start-ups Committee of the national assembly by the end of last year. But the committee has suspended general meetings since 19 December, according to schedules released on its website. The long-term electricity plan is renewed every two years and serves as a basis for business planning, especially for state-controlled companies. Gas incumbent Kogas' procurement strategy has historically reflected the electricity plan. The latest draft lays out Seoul's intention to build three more nuclear reactors by 2038. But planning and construction would take nearly 14 years, according to the government, so the delay in finalising the plan could result in a power supply shortfall by 2038 — when 9.15GW of existing nuclear capacity is set to expire. Nuclear fallout The government may opt to scale down its nuclear expansion ambitions in order to get the draft electricity plan seen by the committee — which must review the plan, although it is not required to approve it. And less nuclear capacity could increase the need for more gas-fired capacity. The energy ministry pledged on 8 January to finalise the plan by June, after which it will pass related bills including the power grid act, but it did not say how it intends to progress the plan in the national assembly. The Korean Nuclear Society (KNS) responded on 9 January, accusing the government of allegedly planning to revise its nuclear objectives so it can speed up the plan's progress. The government's intent to revise its nuclear goals "without any scientific basis" shows that the electricity plan is just a "political bargaining tool that can vary depending on political interests", the KNS said. This threatens the stability of the South Korean electricity market, it added. The ministry did not respond to Argus' request for comment. But the alleged revision may not have been solely driven by political motives. Seoul may have missed the window of opportunity for approving new nuclear capacity in the timescale required, judging by the 14-year timeline for planning and construction. It remains unclear how the government would offset any reduction in its nuclear ambitions, but South Korea's slow grid development may leave little alternative other than boosting gas-fired capacity. Under the current draft electricity plan, gas-fired output would account for a 25.1pc (160.8TWh) share of total generation in 2030 and 11.1pc (78.1TWh) in 2038, up from 22.9pc (142.4TWh) and 9.3pc (62.3TWh), respectively, in the previous plan. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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