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Washington state race may shift climate priorities

  • Market: Emissions
  • 29/10/24

Washington state's gubernatorial race is likely to lead to a change in the attention given to climate change-related policy as governor Jay Inslee (D) exits office.

The race between state attorney general Bob Ferguson (D) and former US representative and King County Sheriff Dave Reichert (R) remains one-sided as it approaches election day 5 November, in a solidly Democrat-leaning state. Ferguson retains a wide lead over his opponent, with a Cascade PBS/Elway survey earlier this month showing 56pc of likely voters supporting the attorney general and 37pc backing Reichert.

Washington voters have not elected a Republican governor since 1980, backing Democrats in 10 straight elections.

"The numbers are going to be really hard for him because there is so many people that will see whoever's name has a ‘D' next to it and that is how they'll vote," said Todd Donovan, a professor of political science at Western Washington University.

While Democrats have a good chance of retaining the governor's seat, it is unlikely that a Ferguson administration will feature the same focus on climate change as his predecessor.

Inslee, a three-term governor, has been a vocal supporter of climate policies such as the state's Climate Commitment Act dating back to his time in the US House of Representatives. That includes an unsuccessful 2020 presidential bid, which focused heavily on climate and clean energy.

The state climate law authorized the "cap-and-invest" program, which launched in January 2023 and requires large industrial facilities, fuel suppliers and power plants to reduce their emissions by 45pc by 2030 and by 95pc by 2050, from 1990 levels.

But climate policies remain a distant-third campaign issue for both candidates, with each focusing more on abortion, housing and crime.

Climate is an area where Inslee led the conversation, and not the party, says Donovan.

"The Democrats are more in defensive mode defending [Inslee's] legacy and the climate policies in the face of these initiatives," he said of the current election.

This defense has centered around Initiative 2117, which would repeal the cap-and-trade program. Democrats have focused the campaign around stopping the initiative on how it could affect funding, including $3.3bn lawmakers appropriated for climate-related projects earlier this year, rather than the impacts of climate change, Donovan said.

Ferguson supports retaining the program but has called for changes, such as ensuring farmers receive the promised exemption from emissions obligations for fuel, which was a point of contention in the original rollout of the program.

Reichert supports the repeal of the program, citing it as adding to higher consumer fuel prices in the state while putting Washington on an unrealistic timeline for transitioning off fossil fuels, he said during an 18 September debate.

The move is part of Reichert's larger platform, which focuses on limiting state taxes and supporting small businesses.

"We can't put a predesignated date on when we are going to change things and expect things just to work," Reichert said.

Ferguson has tried to position his opponent as a climate change denier in recent campaign appearances and materials, citing a recording of Reichert denying human impact on the climate.

Recent polling in the state shows a softening of support for Initiative 2117, suggesting voters will decide to retain the cap-and-trade program.

If that happens, a Ferguson administration may seek to change the shape of the Washington's carbon market on the other side of the election.


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13/11/25

API pitches revamp of biofuel exemptions: Update

API pitches revamp of biofuel exemptions: Update

Updates throughout New York, 13 November (Argus) — The American Petroleum Institute (API) is pitching the White House and biofuel groups on a total revamp of how the US exempts oil companies from a program that requires biofuel blending, according to three people familiar with the lobbying group's work. API recently withdrew its support for a bill that would authorize 15pc ethanol gasoline (E15) year-round on its frustrations with changes to biofuel policy this year that oil companies see as too friendly to farmers and to some small refining competitors. The US for instance recently granted small oil refiners generous hardship waivers from a biofuel blend mandate and proposed requiring larger companies to blend more biofuels in future years as an offset. API's pitch — shared at a White House meeting this week — would require that companies seeking program exemptions must show that economic hardship stems directly from the biofuel program, a more stringent requirement than today, according to two of the people familiar with the group's work. Exemptions would also be restricted to companies with limited collective refining capacity, cutting off larger enterprises like Delek and Par Pacific that own multiple small units that qualify now. Smaller companies like Ergon and Kern Oil could still request waivers, but the total pool of potentially exempted gas and diesel volumes would be far lower. The oil group then wants the US to prohibit hiking other oil companies' blend requirements to offset those exemptions, a tougher sell to biofuel and crop groups that fear unchecked program waivers curb demand for their products. Larger merchant refiners that do not qualify for small refinery relief have also long pushed lawmakers for updates to the program and would not benefit from this proposal. API's idea is to pass legislation pairing updates to the small refinery exemption program with year-round authorization of E15, generally prohibited in the summer without emergency waivers because of summertime fuel volatility restrictions that do not apply to typical 10pc ethanol gasoline. That's a top priority for ethanol companies, otherwise at risk from an increasingly efficient and electric light-duty vehicle fleet. Congress last year nearly passed narrower E15 legislation, which API supported at the time but no longer does without more changes. Courts have struck down past attempts by federal officials to authorize E15 without emergency declarations and to drastically restrict biofuel exemption eligibility, likely limiting what President Donald Trump's administration can do without new legislation. API made the pitch to the White House this week, the sources familiar with API's work said. The White House is hosting other groups for meetings on fuel policy, including another one on Thursday on E15 that featured biofuel groups. Officials from across Trump's administration, including the US Department of Agriculture, have attended. "Administration officials hosted listening sessions with biofuel groups, agriculture and oil refiners to discuss their proposals on year-round E15", a source familiar with the matter said. It is not clear that biofuel advocates, insistent that the Trump administration entirely offset the impact of recent refinery exemptions, are open to the attempted compromise. The ethanol group Renewable Fuels Association declined to comment on E15 talks. Regulatory tweaks to boost ethanol supply would also do little on their own to help producers of other biofuels like renewable diesel. API declined to elaborate on what was discussed at any meetings with the Trump administration. "We appreciate the administration's leadership in bringing stakeholders together to advance a practical solution on E15 and small refinery exemption reform", API said. "We look forward to continuing to work together to advance a framework that supports fuel choice, strengthens the refining and agricultural sectors, and helps ensure a stable, reliable supply for American consumers." Under the Renewable Fuel Standard, the US requires oil refiners and importers to annually blend different types of biofuels or buy credits from those that do. The administration is late setting new biofuel quotas for 2026 but is expected to do so in the coming months, kicking off a flurry of last-minute lobbying about future volumes, exemptions and potential cuts to credits from foreign fuels and feedstocks. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop: South Korea eyes plurilateral Article 6.2 approach


13/11/25
News
13/11/25

Cop: South Korea eyes plurilateral Article 6.2 approach

Belem, 13 November (Argus) — The current set-up of trading emissions reductions on a bilateral basis under Article 6.2 of the Paris Agreement risks fragmenting carbon markets, South Korea warned during a dialogue at the UN Cop 30 climate conference in Belem, Brazil, indicating that it is exploring options for wider collaboration. South Korea intends to develop a "plurilateral cooperation model" for Article 6.2, which would use common authorisation processes and methodologies. The approach would reduce the cost, time and administrative burden involved in engaging with the mechanism, the country said. It is inviting parties to the agreement to collaborate on the model. Article 6.2 allows countries to trade so-called internationally traded mitigation outcomes (Itmos) that can be counted towards their nationally determined contributions (NDCs) to the Paris agreement. NDCs are climate plans submitted by countries or jurisdictions such as the EU. South Korea, which has signed more than 10 bilateral cooperation agreements under Article 6.2 since 2023, said earlier this week that it is yet to see practical results from the mechanism. Concerns were raised at the dialogue around the adequacy of the mechanism's rulebook. EU international carbon markets negotiator Michel Ardohain said that the framework as it stands today "in our view will not guarantee quality on its own. It is not enough". If the bloc opts to engage in the mechanism at a later date, it will use other tools and methodologies to ensure high integrity, Ardohain said. The European Parliament has approved a 90pc reduction in the EU's greenhouse gas emissions by 2040 compared with 1990 levels, of which up to 5pc could be met from 2036 onwards using international carbon credits. But even if it does not permit the use of credits until 2036, the EU will look to start building partnerships sooner rather than later, Ardohain said. Federica Dossi of non-governmental organisation (NGO) Carbon Market Watch also warned at the dialogue of the "inadequacy" of the Article 6.2 rulebook, which she said cannot guarantee the trade of high quality Itmos. Article 6.2 should "orient" itself on Article 6.4 and not the voluntary carbon market (VCM), said Axel Michaelowa, representing the Research and Independent NGOs (Ringo) group, otherwise it risks reputational damage which could in turn lead to low demand and low Itmo prices. Article 6.4 of the Paris deal — which sets out the framework for the Paris Agreement Crediting Mechanism (Pacm) — has laid strong foundational rules, Michaelowa said. The VCM has been dogged in recent years by concerns about the environmental integrity of its credits. Lack of standardisation is contributing to short supply in the Article 6.2 market, according to Frederic Gagnon-Lebrun, senior director of policy and strategy at project developer South Pole. "At this point every transaction is a bespoke transaction," which makes it hard to scale up the market, he told delegates at a Cop 30 side event. But Gagnon-Lebrun said he expects that to change over time, which will help increase credit supply. A lack of resources for some countries is also making it difficult for some to deal with the various project standards, and understand how to ensure project and social integrity. The use of international standards could help, while working with other countries can help close the knowledge gap, said Cristina Figueroa, Article 6 and carbon pricing coordinator in Chile's environment ministry. "It's a learning by doing process," she said. By Victoria Hatherick and Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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API pitches revamp of small refinery biofuel waivers


13/11/25
News
13/11/25

API pitches revamp of small refinery biofuel waivers

New York, 13 November (Argus) — The American Petroleum Institute (API) is pitching the White House and biofuel groups on a total revamp of how the US exempts oil companies from a program that requires biofuel blending, according to three people familiar with the lobbying group's work. The API recently withdrew its support for a bill that would authorize 15pc ethanol gasoline (E15) year-round on its frustrations with changes to biofuel policy this year that oil companies see as too friendly to farmers and to some small refining competitors. The US for instance recently granted small oil refiners generous hardship waivers from a biofuel blend mandate and proposed requiring larger companies to blend more biofuels in future years as an offset. API's pitch would require that companies seeking program exemptions must show that economic hardship stems directly from the biofuel program, a more stringent requirement than today, according to two of the people familiar with the group's work. Exemptions would also be restricted to small companies with limited collective refining capacity, cutting off larger enterprises like Delek that own multiple small units that qualify today. The oil group then wants the US to prohibit hiking other oil companies' blend requirements to offset those exemptions, a tougher sell to biofuel and crop groups that fear unchecked program waivers curb demand for their products. Larger independent refiners that do not qualify for small refinery relief have also long pushed lawmakers for updates to the program and would not benefit from this deal. API's idea is to pass legislation pairing updates to the small refinery exemption program with year-round authorization of E15, generally prohibited in the summer without emergency waivers because of summertime fuel volatility restrictions that do not apply to typical 10pc ethanol gasoline. That's a top priority for ethanol companies, otherwise at risk from an increasingly efficient and electric light-duty vehicle fleet. E15 legislation nearly passed Congress last year. API made the pitch to the White House at a meeting this week, the sources familiar with API's work said. The White House is hosting other groups for meetings on fuel policy, including another one today on E15 that will feature biofuel groups. API declined to comment on any meetings with President Donald Trump's administration. "We appreciate the administration's leadership in bringing stakeholders together to advance a practical solution on E15 and small refinery exemption reform", the group said. "We look forward to continuing to work together to advance a framework that supports fuel choice, strengthens the refining and agricultural sectors, and helps ensure a stable, reliable supply for American consumers." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop: Brazil draws R8.8bn to Climate Fund


13/11/25
News
13/11/25

Cop: Brazil draws R8.8bn to Climate Fund

Sao Paulo, 13 November (Argus) — Brazil's development bank Bndes and environmental ministry (MMA) drew R8.84bn ($1.67bn) in reimbursement resources to its Climate Fund, the bank said at the UN Cop 30 climate summit in Belem,Brazil, on Wednesday night. European banks Germany's Kreditanstalt fur Wiederaufbau, France's Agence Francaise de Developpement and Italy's Cassa Depositi e Prestiti committed to invest €1bn ($1.16bn) by 2027 through reimbursement aimed at climate financing. The Interamerican Development Bank will contribute with another $500mn for the fund in the same period. A foreign finance commission under Brazil's planning ministry and each institution must approve before the resources before signing financing agreements. Bndes's Climate Fund is a financial mechanism focused on climate actions, such as energy transition and sustainable development projects, especially for small- and medium-sized companies. New operations for forests Bndes and MMA also announced five new credit operations totaling R912mn to restore native vegetation in the Amazon rainforest, in the tropical savanna biome known as Cerrado and in the coastline Atlantic Forest. Brazilian private-owned companies focused on recovering degraded lands and promoting sustainable agriculture practices will restore over 86,000 hectare (ha), but Bndes did not specify any timeframes. Scale forest restoring company Re.green holds the largest fund, with R250mn, to restore around 19,000ha along the Amazon and the Atlantic Forest. The Climate Fund has already granted other R187mn to the firm in 2024, targeted at preventing the emission of 1.27mn metric tonnes (t)/yr of CO2 equivalent. Other projects include Brazilian investment bank BTG Pactual's ecological subsidiary Camapua, investments holding Lorinvest's forestry subsidiary Tree+, public projects developer Ibema group and investment group Patria. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop: Canada provides C$400mn to climate projects


13/11/25
News
13/11/25

Cop: Canada provides C$400mn to climate projects

Belem, 13 November (Argus) — Canada will provide nearly C$400mn to efforts to reduce emissions in developing countries, the country's government said today. The country on Thursday announced a total investment of C$392mn ($279.7mn) to support new and enhanced climate adaptation measures, sustainable agriculture and other greenhouse gas (GHG) emissions-reduction projects. The government announced the funding during the UN Cop 30 climate summit in Belem, Brazil. The majority of the total, at C$263mn, is for the International Fund for Agricultural Development to implement its Climate Resilient Smallholder Program. The program aims to help small-scale farmers in developing countries with climate resilience and adaptation efforts, while also expanding market access. In addition, C$106mn will go to Canadian Investment firm Deetken Asset Management to launch the Climate Action Fund, which will provide financing to small- and medium-sized business and financial institutions in Latin America and the Caribbean to support mitigation — cutting emissions — and adaptation projects, such as clean energy, sustainable forestry and climate-smart agriculture. The government will provide C$15mn to French sustainable investment firm Mirova for its Sustainable Land Fund 2. The fund aims to mobilize private capital to support environmentally responsible land-use practices. Canada also announced C$8mn for CGIAR, a public agricultural research network to help 38mn small-scale producers adapt to climate change and reduce emissions. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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