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Brazil pushes climate leadership in Davos

  • Market: Agriculture, Biofuels, Electricity, Emissions
  • 21/01/25

Brazil is looking to build an "ecological legacy" and called on richer countries to invest in its growing sustainable markets as it prepares to host the UN Cop 30 climate summit later this year, government representatives said at the World Economic Forum (WEF) in Davos.

"The last two Cop editions were held in countries where most of their economy relies on oil exploration," northern Para state governor Helder Barbalho said at WEF today. "For the first time this year, we will have the international community debating climate change and economy while standing in the largest rainforest in the world."

Brazil will host Cop 30 in November in Para's capital Belem, at the mouth of the Amazon rainforest. It tapped veteran diplomat Andre Aranha Correa do Lago, an advocate of sustainable development, to preside over the summit.

Also speaking at WEF, Brazil's supreme court president Luis Roberto Barroso focused on government efforts to prevent environmental crimes and regulate new sustainable market.

Throughout President Luiz Inacio Lula da Silva's third administration — which began in 2023 — Brazil approved its carbon credit trade market as well as offshore wind generation and biofuels regulation. Barroso said that the Brazilian judiciary branch, along with the legislative and executive power, established ecological and landownership matters as major priorities.

Para's governor touted its major achievements from 2019-2024. The state is Brazil's former largest largest greenhouse gases (GHG) producer, but has reduced its emissions.

"People used to think that, in order to increase income, we should destroy our forests and open space for other activities," Barbalho said. "Today, we know how to take advantage of our forests to create sustainable jobs, new ways of income and to diversify our economy while preserving current flora and fauna."

Although Para increased its cattle raising by 3mn from 2021-2024, it cut deforestation in Amazonian lands by 42pc because of sustainable practices and financial incentives for farmers to preserve native vegetation, Barbalho added.

The state is also focusing on the carbon credit market, the governor said. Recently, Para sold carbon credits equivalent to over 12mn metric tonnes of CO2 , raising $1bn to be used in continuous emission-reducing practices thanks to state-issued policies.

New growth

Still, Brazil cannot meet its previous Cop pledges with only its current forests and without reforestation. Almost 50pc of Brazil's GHG emissions came from land-use and forestry as of January 2024.

In November, Para created Brazil's first forest restoration concession, which will allow companies to participate in an open call to reforest and restore the damaged area of the Triunfo do Xangu environmental reserve. Once the restoration is done, the company will generate revenue through carbon credits from the recovered area.

Brazil — which saw increased deforestation during president Jair Bolsonaro's administration in 2019-2022has been targeting reforestation as part of its efforts to meet its emissions-reduction target.

Brazil's mines and energy minister Alexandre Silveira is also in Davos and seeking to attract investment in renewable energy-fueled data centers in Brazil, the ministry told Argus. The data center plan is under development and will be concluded by the end of the first half.

Data centers consume up to 2pc of all power generated in the world and are responsible for 0.3pc of all CO2 emissions, according to the US International Energy Agency.

But Barroso ended the panel saying that "climate change deniers made a triumphant return."

On Monday, US president Donald Trump pulled the US out of the Paris Climate agreement. "I'm immediately withdrawing from the unfair, one-sided Paris climate accord rip-off," Trump said at a rally later in the day. "The US will not sabotage their own industries while China pollutes with impunity."

Trump is scheduled to speak at Davos on 23 January.

Throughout his campaign, Trump repeated the slogan "drill, baby, drill" as part of his support for fossil fuel production in the US.


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California aims to expand alternative bunkers

California aims to expand alternative bunkers

New York, 11 February (Argus) — California lawmakers will consider expanding alternative marine fuels use by ocean-going vessels on the state's coast. State senate bill 298, introduced by state senator Anna Caballero (D), would require the California State Energy Resources Conservation and Development Commission (Energy Commission), the California Transportation Agency and the state board to develop a plan by 31 December 2030 for the use and deployment of alternative fuels at California's public seaports. The plan should identify significant alternative fuel infrastructure and equipment trends, needs, and issues and describe how the state will facilitate permitting and construction of infrastructure to support alternative fuels. The plan should also identify locations for alternative fuel infrastructure, provide a reasonable timeline for its installment and estimate the costs, including public or private financing opportunities. The bill also calls for the Energy Commission to convene a working group consisting of representatives of seaports, marine terminal operators, ocean carriers, waterfront labor, cargo owners, environmental and community advocacy groups, the Transportation Agency, the state board, the Public Utilities Commission, and air quality management and air pollution control districts. The working group will advise the commission. The US territorial waters, including California's, are designated as emission control areas (ECAs). In the ECAs, the sulphur content of marine fuel burned by ocean-going vessels is capped at 0.1pc. Thus ocean-going vessels within 24 nautical miles of California burn 0.1pc sulphur maximum marine gasoil (MGO). Ocean-going vessels could achieve the equivalent of 0.1pc sulphur marine fuel emissions by installing marine exhaust scrubbers. But California has banned their use. California is the only US state that has banned the outright use of marine scrubbers. California also requires that ocean-going vessels while at berth in California ports must either use shore power or use alternative technology such as batteries. The regulation came into force for container ships, reefers and cruise ships in 2023. It came into force this January for tankers visiting Los Angeles and Long beach and for roll on roll off vessels. Starting on 1 January 2027, it will apply to all tankers at berth in all California's ports. US harbor craft vessels (such as barges, commercial fishing vessels, excursion vessels, dredgers, pilot vessels, tugboats and workboats) in California's waters are required to burn renewable diesel (R99 or R100). By comparison, elsewhere in the US, harbor craft vessels are required to burn ultra-low sulphur diesel (ULSD). In January, Los Angeles ULSD averaged at $773/t and R99 at $962/t. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil plans Amazon forest concession sale


11/02/25
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11/02/25

Brazil plans Amazon forest concession sale

Sao Paulo, 11 February (Argus) — Brazil's environment ministry will auction concessions in the Jaturana national forest, in northern Amazonas state, as part of government efforts to prevent deforestation. The government will sell four forest management concession areas with a combined 453,000 hectares (ha) in the Apui municipality. The concessions will require roughly R430mn ($7.4mn) in infrastructure investments and R3.4bn in operating investments over the 37-year concession period. The auction is scheduled for 21 May and will be held at the B3 exchange, in Sao Paulo state, to guarantee transparency and boost competition, the ministry said. The government plans to hold a roadshow to promote the concessions. The government estimates that the auction will generate concession payments of R32.6mn/yr, which will be split between federal environmental protection agencies, Amazonas state and the Apui city government. The winning bidders will be allowed to harvest up to six trees/ha for lumber from the concession area, according to the auction's terms elaborated by the Bndes development bank. Other select activities, including the production of açai fruit, Brazil nuts and tropical tree oils, such as copaiba and andiroba, will also be permitted. The concession terms stipulate that the winning bidder will not have control over the mineral or water rights of the region and will be required to invest in research and environmental education. With the sale of the Jaturana concessions, Brazil will increase the total amount of forest managed by the private sector — now at 1.31mn ha — by 35pc. Brazil has 23 concession contracts for nine national forests in five Brazilian states. The goal is to award a total of 5mn in forest concessions over the next three years. The Brazilian forestry service (SFB) is developing concessions for 11 other national forests, the head of the SFB Garo Batmanian said on Monday. Limiting deforestation is one of President Luiz Inacio da Silva's goals for his administration and a flagship of the country's ambitions for the UN Cop 30 summit, which will be held in Belem, the capital of northern Para state, in November. Brazil has been targeting reforestation as part of its efforts to meet its emissions-reduction target. But wildfires in the country are still a major concern, as they rose by 79pc in 2024 from a year prior , according to environmental network MapBiomas' fire monitor researching program. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil’s January inflation lowest since 1994


11/02/25
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11/02/25

Brazil’s January inflation lowest since 1994

Sao Paulo, 11 February (Argus) — Brazil's monthly inflation stood at 0.16pc in January, the lowest increase for the month since 1994 when the government enacted multiple measures to contain soaring inflation, according to government statistics agency IBGE. The consumer price index (CPI) slowed annually to 4.56pc from 4.83pc in December, heavily influenced by a 14.2pc tumble in power costs in January, compared with a 3.19pc drop in December. Power costs decelerated January's inflation by 0.55 percentage points — the major individual contributor to the annual drop, according to IBGE — thanks to a R1.3bn ($224mn) federal discount in power tariffs that month, CPI's manager Fernando Goncalves said. Food and beverage costs rose by an annual 7.25pc, decelerating from 7.69pc in December. Beef costs increased annually by almost 21.2pc following a 20.8pc gain in the month prior, while soybean oil costs decelerated to 24.55pc over the last 12 months from 29.2pc in December. Motor fuels prices rose by 11.35pc in January. Ethanol was responsible for the group's largest annual increase of 21.59pc, up from 17.58pc in the month prior. Gasoline and diesel prices also registered annual rises of 10.71pc and 2.66pc from 9.71pc and 0.66pc, respectively. Still, diesel prices remained at a 0.97pc monthly increase from December, while ethanol costs contracted by 1.82pc from 1.92pc and gasoline prices increased by 0.61pc from 0.54pc. Fuel prices are likely to keep increasing in February, as states increased the VAT-like ICMS tax on fuels and state-controlled Petrobras increased wholesale diesel prices by 6.3pc , both effective as of 1 February. Transportation costs rose by 1.3pc in January over the year, following a 0.67pc gain in December. Flight tickets were the most responsible for the increase, with a 10.42pc monthly gain from a 22.2pc contraction in December. Brazil's central bank is targeting CPI of 3pc with a margin of 1.5 percentage point above or below. The bank raised its target rate to 13.25pc in January after it failed to maintain Brazil's headline inflation under the ceiling of 4.5pc for 2024. Further increases are expected in the coming months, the bank said. The central bank has recently changed the way it tracks the inflation goal. Instead of tracking inflation on a calendar year basis, it will now monitor the goal on a 12-month basis. In 1994, Brazil enacted its Plano Real, a series of measures to stabilize the economy and detain soaring inflation, which had hit an annual 916pc by the end of that year. One of the measures was to change its currency to the real from the cruzeiro real. 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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Energy Transfer to supply gas to planned data center


10/02/25
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10/02/25

Energy Transfer to supply gas to planned data center

Houston, 10 February (Argus) — US energy infrastructure company Energy Transfer has reached a long-term agreement to supply natural gas to an artificial intelligence data center in central Texas. Under that agreement — Energy Transfer's first direct supply contract with a data center — the company will provide about 450mn cf/d (13mn m³/d) to Denver, Colorado-based CloudBurst Data Center's planned data center campus near San Marcos, Texas, for at least 10 years. That deal is contingent on CloudBurst reaching a final investment decision, which is expected later this year. The data center is scheduled to begin operations in the third quarter of 2026, Energy Transfer said. New energy-intensive data centers that run artificial intelligence software will be a key source of power demand growth in the coming years. Data centers were forecast to drive power demand in the commercial sector 2pc higher this year and lead to another 2pc increase in 2026, according to the US Energy Information Administration. Those additional power needs could lift gas demand by 3 Bcf/d or more by the end of this decade, according to some analyst estimates. Energy Transfer will provide the gas via the Oasis pipeline, a 1.2 Bcf/d line that connects gas supplies from the Permian basin of west Texas to demand centers on the Texas coast. That supply will be used to generate 1.2GW of power exclusively for the data center. Energy Transfer is in talks to supply other data centers along its network of natural gas pipelines. It expects the CloudBurst agreement to be "the first of many," the company said. By Jason Womack Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Most nations miss NDC deadline, while ambition varies


10/02/25
News
10/02/25

Most nations miss NDC deadline, while ambition varies

London, 10 February (Argus) — The majority of countries that are party to the Paris climate agreement have missed the deadline to submit new national climate plans, while research group Climate Action Tracker (CAT) found that several are not aligned with Paris accord goals. Just 12 countries had submitted new climate plans, known as nationally determined contributions (NDCs), by time of writing today — the UAE, Brazil, the US, Uruguay, Switzerland, the UK, New Zealand, Andorra, Saint Lucia, Ecuador, Singapore and the Marshall Islands. UN climate body the UNFCCC had set 10 February as the deadline for countries to submit their third NDCs, setting out climate action and targets up to 2035. CAT said that of the six NDCs it analysed, just the UK's was aligned with the Paris agreement. The UK plan is "about the only bright spot" among the countries it tracks, CAT noted. But it warned that the UK government "has inherited a vast implementation gap" and must take "urgent action" to introduce and strengthen policies to ensure emissions reduction targets are reached. The UK aims to cut emissions by 81pc by 2035, from a 1990 baseline. The country should support its goals with more international climate finance to be "a fully 1.5°C aligned contribution", CAT said. The Paris agreement seeks to limit the rise in global temperature to "well below" 2°C above pre-industrial levels, and preferably to 1.5°C. CAT noted "a significantly more ambitious" target for 2035 from the UAE , compared with its 2030 goal, but flagged the need for details on the country's planned emissions cuts. It noted a "lack of transparency" in Brazil's NDC and found that, despite an increase in ambition, New Zealand's 2035 NDC "falls short". Switzerland's new NDC "is diverging from a 1.5°C aligned pathway", CAT said. And it said that while the US is leaving the Paris agreement, the country"s NDC "can still be a guiding document for the roughly half of the US states who support continued climate action." But many climate policy observers have emphasised that higher ambition and comprehensive plans are far more important than timeliness. The EU, Canada, Mexico and Norway committed to new, Paris-consistent NDCs at the UN Cop 29 climate summit in November. Climate Action Tracker tracks around 40 countries and the EU, covering around 85pc of global emissions and 70pc of global population. The Paris agreement has a ratchet mechanism, which requires countries to review and revise climate plans every five years, increasing ambition. The UNFCCC deadline for NDC submissions is not enforceable. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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