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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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20/05/25

Brazil to walk tightrope in Cop 30 fossil fuel talks

Brazil to walk tightrope in Cop 30 fossil fuel talks

Rio de Janeiro, 20 May (Argus) — Brazil is arguing that its developing country status allows it to consolidate its position as a major crude producer and is likely to lean on developed countries during much-awaited discussions on moving away from fossil fuels at the UN Cop 30 climate conference in November. Attempts to reach an ambitious outcome on mitigation — cutting greenhouse gas emissions — and actions to move away from fossil fuels were quashed at Cop 29 in Baku last year, and all eyes are on Brazil to bridge divides on this issue . Cop 30 president-designate Andre Correa do Lago has failed to address fossil fuels in his two letters outlining priorities for the summit, but members of the Cop 30 team have indicated the issue will be on the agenda. With geopolitical tensions and energy security questions redirecting government priorities away from the energy transition, the outlook is more challenging than when Cop parties agreed the global stocktake (GST) conclusion on fossil fuels and energy in 2023 . But Brazil is well-placed to take the lead. It is a respected player in climate discussions and has one of the cleanest energy mix — 49pc of its energy and 89pc of its electricity comes from renewables. Its own mitigation efforts prioritize slashing deforestation, which accounts for the lion's share of Brazil's greenhouse gas (GHG) emissions. Non-profit World Resources Institute Brazil describes the emissions reduction target in Brazil's nationally determined contribution (NDC) — climate plan — as "reasonable to insufficient" and notes that energy emissions are expected to increase by 20pc in the decade to 2034. Its NDC avoids any concrete steps towards winding down crude. After you The government's view on fossil fuels is that Brazil's developing country status, the oil and gas industry's importance in its economy and comparatively low fossil fuel emissions justify pushing ahead with oil production. Correa do Lago said earlier that Belem was picked as a venue for Cop 30 to show that Brazil is still a developing country, adding that any decision on oil and gas should be taken by Brazil's citizens. President Luiz Inacio Lula da Silva said that oil revenue will fund the energy transition. It is a position that has earned Brazil accusations of hypocrisy from environmentalists at home and abroad, but which also places it as a possible model for other hydrocarbon-producer developing countries. Brazil's diplomatic tradition of pragmatically balancing seemingly opposing positions could serve it well here, said Gabriel Brasil, a senior analyst focused on climate at Control Risks, a consultancy. He does not see Brazil's attempt to balance climate leadership with continued oil production as hurting its standing among fellow parties or energy investors. Civil society stakeholders hope pre-Cop meetings will help bring clarity on how Brazil might broach the fossil fuel debate. Indigenous groups, which are set to be given more space at Cop, are demanding an end to fossil fuel extraction in the environmentally sensitive Foz do Amazonas offshore basin. Meanwhile, Brazilian state-owned Petrobras moved one step closer to being authorized to begin offshore drilling there . During meetings of the UN climate body — the UNFCCC — in Panama City this week, the Cop 30 presidency will present ideas for the summit "with a focus on the full implementation of the GST". But it has to wait for countries to update their NDCs to gauge what is achievable on mitigation. Only 20 have submitted new NDCs so far, with the deadline pushed back to September. Brazil's own NDC gives some clues. It welcomes the launch "of international work for the definition of schedules for transitioning away from fossil fuels in energy systems" and reiterates that developed countries should take the lead. And a report commissioned by Brazil's oil chamber IBP and civil society organization ICS to be given to negotiators ranks Brazil as a "mover" in the transition away from oil and gas, ahead of "adapters" like India and Nigeria but behind "front-runners" Germany and the US. The research develops the idea of a country-based transition plan, using criteria such as energy security and institutional and social resilience, as well as oil and gas relevance. By Constance Malleret 2023 Brazil emissions sources Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil backs R80mn for Amazon reforestation project


20/05/25
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20/05/25

Brazil backs R80mn for Amazon reforestation project

Sao Paulo, 20 May (Argus) — Brazil's Bndes development bank will finance R80mn ($14.14mn) for Brazilian reforestation startup re.green to recover degraded areas in the Amazon rainforest and the Atlantic forest. The investment will fund re.green's deal with Microsoft , aimed at generating carbon offsets in both biomes, Bndes said. The resources come from the Climate Fund, which is linked to the environment ministry and is managed by Bndes. The project includes areas in Brazil's Restoration Arc initiative, which focuses on recovering degraded territories in the Amazon rainforest's most damaged areas. The Restoration Arc plans to restore 6mn hectares of native flora in the Amazon, as well as recover 1.65bn metric tonnes of CO² from the atmosphere by 2030. But it requires investments of $10bn (R56.5bn), Bndes said. The Climate Fund was created in 2009 with some of its funds coming from oil and natural gas exploration to mitigate and combat climate change. It currently holds around R11bn, according to Bndes. Reforestation is one of Brazil's flagship themes for the UN Cop 30 summit, which it will host in northern Para state in November. 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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Nuclear issue splits Australia’s opposition coalition


20/05/25
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20/05/25

Nuclear issue splits Australia’s opposition coalition

Sydney, 20 May (Argus) — Australia's Liberal-National opposition coalition has split because of a nuclear energy disagreement, leaving the ruling Labor Party in a stronger position to push through its renewable energy agenda and possibly ushering in a period of energy policy stability. The Nationals leader David Littleproud announced the split at a press conference at parliament house on 20 May. He said the parties are no longer aligned on nuclear forming part of the energy grid and its proposed A$20bn ($12.8bn) future fund for regional Australia. The Liberal party did not confirm whether it would support nuclear energy or the future fund, Littleproud added. Australia's opposition coalition — comprising of the right-leaning National and Liberal parties — has separated after an 80-year alliance, further affirming the Labor government's majority after its landslide win on 3 May . Neither the Liberal nor the National party is likely to form government in the future without each other's support, so the split hands more power to the Labor party to pursue its energy transition policies and could allow the Liberal party to move towards the middle of the political spectrum. It could also see the Labor and Liberal parties forming a consensus, after many years of disagreement on energy policy as well as resources and energy tax regimes . The Liberal party needs time to "reinvent" themselves after their massive loss, he added. The party lost 15 seats in the House of Representatives in the last election, while the Nationals lost just one. Littleproud said he will work with the Liberal party leader Sussan Ley to rebuild their relationship and potentially reform a coalition before the next election. "We will be pragmatic and work constructively with Sussan Ley and her team to bring down the Albanese government after next election," he said. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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GFG puts Australian Mn plant on care and maintenance


20/05/25
News
20/05/25

GFG puts Australian Mn plant on care and maintenance

Sydney, 20 May (Argus) — UK-owned steelmaker GFG Alliances has placed its Liberty Bell Bay manganese alloy smelter in Tasmania into care and maintenance over manganese ore supply issues, Tasmanian minister for business, industry and resources Eric Abetz said on 19 May. GFG is committed to the long term success of the Liberty Bell smelter and expects the pause to be temporary, a company spokesperson told Argus on 20 May. The Tasmanian state government is working with GFG and the Australian federal government to address challenges at the plant. It has also asked prime minister Anthony Albanese to support Liberty Bell, state premier Jeremy Rockcliff said on 20 May. Liberty Bell Bay is Australia's only ferroalloy plant and is permitted to produce a combined total of 290,000 t/yr of ferromanganese and silicomanganese. GFG sources Liberty Bell Bay's manganese ore from Australian metal producer South32's Australian Gemco mine and South African sites, which have faced recent production disruptions because of bad weather and maintenance shutdowns. Cyclone Megan flooded and damaged parts of Gemco in March 2024, taking it off line for four months. South32 closed the mine again in January-March 2025 to complete mine dewatering work. South32 also cut manganese production at its South African operations by 10pc on the year in January-March because of scheduled maintenance work and an unplanned shutdown at its Wessels mine. Gemco's manganese production is forecast to reach approximately 5mn t in the 2025-26 financial year ending 30 June, the Northern Territory state government said in a budget announcement. South32 has not released its Gemco production guidance for 2025-26. Liberty Bell Bay's production pause comes after the South Australian state government placed GFG's 1.2mn t/yr Whyalla steelworks into administration in February. The state government later announced plans to transfer control of the Whyalla port from GFG to the steelwork's administrators. Liberty Bell Bay is one of only six facilities in Tasmania covered under Australia's federal safeguard mechanism. It received 8,762 safeguard mechanism credits (SMCs) for the July 2023-June 2024 compliance year as its covered scope 1 emissions of 196,125t of CO2 equivalent (CO2e) were below its baseline of 204,887t of CO2e. Two facilities operated by GFG — the Whyalla steelworks and the Middleback Range iron ore mine — ended the compliance year in an excess emissions situation because they were in administration, according to the Clean Energy Regulator (CER). By Avinash Govind and Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU, UK to ‘work towards’ linking carbon markets


19/05/25
News
19/05/25

EU, UK to ‘work towards’ linking carbon markets

London, 19 May (Argus) — The EU and UK agreed to work towards linking their respective emissions trading systems (ETS), as part of their common understanding agreement concluded at a summit in London today. "The European Commission and the United Kingdom share the view that a functioning link between carbon markets would address many of the issues raised in respect of trade and a level playing field," the agreement states. A linking agreement should exempt both jurisdictions from their respective carbon border adjustment mechanisms, according to the common understanding, and the linked systems should cover power and industrial heat generation, and domestic and international maritime and aviation emissions. The statement specifically states that any link "should not constrain the European Union and the United Kingdom from pursuing higher environmental ambition". It also underlines that the UK ETS's supply cap and its emissions reduction pathway are "guided by" the country's Climate Change Act and nationally determined contributions to the Paris climate agreement, and that these should be "at least as ambitious" as the EU's. The UK has legally binding targets to cut its greenhouse gas (GHG) emissions by at least 68pc by 2030 and 81pc by 2035, both compared with 1990 levels. The EU aims to cut its net GHG emissions by 55pc by 2030, and is yet to set a 2035 target. Both jurisdictions are targeting net zero emissions by 2050, while they share the "same interests" in addressing climate change, commission president Ursula von der Leyen said today. Linking the systems would "save British businesses £800mn in EU carbon taxes", UK prime minister Keir Starmer said today, without specifying a timeframe for the savings. A study commissioned by a range of utilities and published last week found that linking the two systems would save up to €1.2bn on lower hedging costs resulting from improved market liquidity and lower bid-offer spreads. Today's agreement provides no timeline for linking the systems. The process to negotiate and link the Swiss ETS to the EU's scheme took almost 10 years. Alongside plans to work towards linking the EU and UK ETS, the jurisdictions also alluded in the agreement to continuing "technical regulatory exchanges" on energy technologies including hydrogen, carbon capture and storage and biomethane. And they will "explore in detail the necessary parameters" for the UK's potential participation in the EU's internal power market. By Victoria Hatherick and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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