New German climate minister stresses nature angle

Market: Electricity, Emissions
07/05/25

Germany's new federal minister for the environment, climate action, nature conservation and nuclear safety today stressed the importance of "healthy nature" to protect the climate, and of renewable energies and "innovative" technologies to reduce carbon emissions in Germany.

Environment minister Carsten Schneider, of the co-ruling left-of-centre SPD party, was sworn in on Tuesday evening with his cabinet colleagues.

Schneider said he is looking forward to "driving forward climate action in the coming years, and to promoting the preservation and improvement of our natural resources in nature and the environment, for soil, water and air".

Schneider said it is "good and right" to once again have national and international climate action, along with nature conservation and environmental protection, bundled in the environment ministry.

Germany's last government split the climate dossier between the economy ministry, which was given the climate action portfolio, and the foreign ministry, which dealt with international climate policy. Previous economy minister Robert Habeck of the Green party last month criticised the decision to exclude climate action from the economy ministry, emphasising the "interlocking" between climate action, industry and energy policy.

Schneider today underlined the crucial importance of "ambitious marine protection", and of continuing the previous ministry's natural climate protection action programme to boost the "important" ecosystems in forests, moors and bodies of water. The ministry will support cities and municipalities on nature conservation and climate adaptation, he said.

Schneider made no mention of carbon markets or emissions trading systems.

Schneider, the former special envoy for Germany's eastern states, is a budget expert with no climate or environment background.

His permanent junior minister is Jochen Flasbarth, former permanent junior minister at the development ministry and a permanent junior minister at the environment ministry between 2013-21, at a time when the environment minister was responsible for climate policy. Flasbarth was involved in international climate negotiations, including the UN Cop 21 climate summit in Paris in 2015. Flasbarth is also a former president of federal environment office UBA. Flasbarth as junior development minister urged richer developing countries such as China or Saudi Arabia to contribute more to international climate finance.

By Chloe Jardine

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12/06/25

EPA readies new biofuel blend mandate proposal

New York, 12 June (Argus) — President Donald Trump's administration is close to releasing two regulations informing oil refiners how much biofuel they must blend into the conventional fuel supply. The two rules — proposed biofuel blend mandates for at least 2026 and most likely for 2027 as well as a separate final rule cutting cellulosic fuel mandates for last year — exited White House review on Wednesday, the last step before major regulations can be released. Previously scheduled meetings as part of the process appear to have been cancelled, another signal that the rules' release is imminent. The Environmental Protection Agency (EPA) has said it wants to get the frequently delayed Renewable Fuel Standard program back on its statutory timeline, which would require volumes for 2027 to be finalized before November this year. Any proposal will have to go through the typical public comment process and could be changed. A coalition of biofuel-producing groups and feedstock suppliers, including the American Petroleum Institute, has pushed EPA to set a biomass-based diesel mandate of 5.25bn USG for 2026, hoping that a record-high target will support biorefineries that have struggled this year. Many plants have idled or run less recently, as uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and tariffs that up feedstock costs all hurt margins. EPA administrator Lee Zeldin also told a House subcommittee last month the agency wanted "to get caught up as quickly as we can" on a backlog of small refiner requests for program exemptions. Courts took issue with EPA's exemption policy during Trump's first term and again during President Joe Biden's tenure, leaving officials now with dozens of waiver requests covering multiple compliance years still pending. It is unclear whether the rule will provide clarity on EPA's plans for program waivers — including whether the agency will up obligations on other parties to make up for exempt small refiners — but biofuel groups have worried that widespread exemptions would curb demand for their products. The price of Renewable Identification Number (RIN) credits used for program compliance have been volatile this year on rumors about these exemptions, which EPA has called market manipulation. RIN trading picked up and prices rose on the news as Thursday's session began. Bids and offers for 2025 ethanol D6 RINs, the most prevalent type currently trading, began the day at 96¢/RIN and 98¢/RIN, respectively. Deals were struck shortly after at 98¢/RIN and 99¢/RIN, with seller interest at one point reaching 100¢/RIN — well above a 95.5¢/RIN settle on Wednesday. Biomass-based diesel D4 RINs with concurrent vintage followed the same path with sellers holding ground as high as 107¢/RIN. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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UK ETS emissions fell by 11pc on the year in 2024

12/06/25

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12/06/25

UK ETS emissions fell by 11pc on the year in 2024

Seville, 12 June (Argus) — Emissions in sectors covered by the UK emissions trading scheme (ETS) declined by 11.5pc year on year in 2024, data published by the UK ETS authority show, slowing their decline slightly from the previous year. Stationary installations covered by the UK ETS emitted 76.7mn t of CO2 equivalent (CO2e), down by 12.9pc from 2023, the data show. But this was offset somewhat by a 2pc increase in aviation emissions to 8.99mn t CO2e. Overall UK ETS emissions now have declined for two consecutive years, having fallen by 12.5pc in 2023. Emissions under the scheme rose by 2.5pc in 2022, as a strong rebound in aviation activity following earlier Covid-19 restrictions outweighed declining stationary emissions. Stationary emissions have decreased in every year since the scheme launched in 2021. The majority of the decline in stationary emissions under the UK ETS last year took place in the power sector, where emissions dropped by 18.2pc to 30.6mn t CO2e. The country's last coal-fired plant, Ratcliffe-on-Soar, closed in September last year. And the share of gas-fired output in the generation mix dipped as wind, solar and biomass production and electricity imports edged higher. Industrial emissions also declined, by 8.9pc to 46.1mn t CO2e. The iron and steel sector posted the largest relative drop of 30pc to 6.54mn t CO2e. Emissions from crude extraction fell by 6.4pc to 6.0mn t CO2e, while emissions from gas extraction, manufacture and distribution activities decreased by 8.9pc to 5.3mn t CO2e. The chemicals sector emitted 2.28mn t CO2e, down by 5.2pc on the year. A total of 43 installations were marked as having surrendered fewer carbon allowances than their cumulative emissions since the launch of the UK ETS, as of 1 May. A further two installations failed to report their emissions by the deadline. "Appropriate enforcement action" will be taken against operators that fail to surrender the required allowances, the UK ETS authority said. Overall greenhouse gas emissions across the UK economy dropped by a smaller 4pc last year, data published by the government in March show. This decline also was driven principally by lower gas and coal use in the power and industry sectors, with smaller declines in transport and agriculture, not covered by the UK ETS, and an increase in buildings emissions, also out of the scheme's scope. Emissions under the EU ETS in 2024 dipped by a projected 4.5pc from a year earlier, based on preliminary data published by the European Commission in April. The UK and EU last month announced that they will "work towards" linking the two systems together. By Victoria Hatherick UK ETS emissions mn t CO2e Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Malaysia’s oil, gas projects to emit 4bn t GHG: CREA

12/06/25

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12/06/25

Malaysia’s oil, gas projects to emit 4bn t GHG: CREA

Singapore, 12 June (Argus) — Malaysia's continued extraction and use of its oil and gas resources could emit around 4bn t of greenhouse gases (GHGs), according to a report by the Helsinki-based Centre for Research on Energy and Clean Air (CREA). Malaysia holds about 9.84bn bl of oil equivalent (boe) in committed fossil fuel reserves, of which 82pc is gas, stated the report, which was written in collaboration with environmental think-tank RimbaWatch. This figure only includes projects with proven reserves that are covered by a production commitment such as production sharing contracts. These committed reserves would also emit an estimated 4.15bn t of CO2 equivalent (CO2e), which is equivalent to 13 years of Malaysia's annual emissions. The emissions will also consist of 10.9mn t of methane, which is a much more potent GHG than CO2. Malaysia's remaining commercially recoverable reserves are estimated at over 17bn boe over more than 400 fields, with gas comprising about 75pc of this. Malaysia launched its national energy transition roadmap (NETR) in 2023, detailing initiatives to achieve its 2050 net zero carbon emissions target, such as renewable energy development, hydrogen and carbon capture, utilisation and storage (CCUS). The country aims to reduce its economy-wide carbon emissions by 45pc in 2030 compared with 2005 levels, under its nationally determined contribution — climate plan — to meet the goal of the Paris Agreement. But at the same time, the country is seeking to maximise its fossil fuel production to ensure energy security. State-owned Petronas raised its total oil and gas production in 2024 to 2.4mn b/d of oil equivalent (boe/d), up by 1pc on the year. Of this, oil production fell by 4.4pc on the year to 813,000 boe/d, while gas output rose by 3.6pc to 1.64mn boe/d. More than 80pc of Malaysia's power was generated from fossil fuels in 2024. The NETR plans to increase the share of gas in total primary energy supply by 16pc from 2023 to 57pc in 2050, with gas viewed as a transition fuel for decarbonisation. But "referring to gas as sustainable, and claiming that Malaysia can achieve net-zero emissions through growing gas, are oxymorons," stated the report. Petronas' Scope 1 and 2 greenhouse gas emissions totalled 46.04mn t of CO2e across its Malaysian operations in 2024, surpassing its target of 49.5mn t of CO2e for the year. In comparison, the firm recorded 45.6mn t of Scope 1 and 2 GHG emissions in 2023. But the firm's net zero pathway excludes its Scope 3 emissions, which make up about 80pc of a fossil fuel entity's emissions, according to the report. Additionally, its CCUS plans are aimed at enabling sour gas extraction, hence exacerbating fossil fuel production and emissions. Malaysia should instead set a sectoral carbon budget for the domestic energy sector in line with its net zero goals, taking into account both production and consumption, and cement this budget in the country's upcoming Climate Change bill, stated the report. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EPA seeks end to power plant CO2, mercury rules

11/06/25

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11/06/25

EPA seeks end to power plant CO2, mercury rules

Washington, 11 June (Argus) — The US Environmental Protection Agency (EPA) on Wednesday proposed the repeal of CO2 and mercury emissions standards for power plants, its latest steps in an effort to undo many of the regulations enacted by President Donald Trump's predecessors The agency said the repeals will help bring about an end to the "war on much of our domestic energy supply" waged by previous administrations, while saving consumers money "We have chosen to both protect the environment and grow the economy," EPA administrator Lee Zeldin said. "There was this false binary choice made before we got here." Together, the repeals would save more than $1bn/yr for American families, Zeldin said. The standards, finalized last year by EPA during the administration of former president Joe Biden, cover CO2 emissions from existing and new coal-fired power plants and new natural gas-fired units, as well as mercury emissions from coal- and oil-fired power plants. At the time, EPA said the CO2 rules will lead to a 90pc reduction in emissions from coal-fired power plants, while it tightened the Mercury and Air Toxics Standards (MATS) for coal- and oil-fired units by 67pc and included new emissions-monitoring requirements. In addition, the MATS for lignite-fired units were tightened by 70pc to put them in line with the standards for other coal plants. The CO2 rule includes standards for new coal and gas units and guidance for existing coal-fired power plants, the latter of which vary by unit type, size and other factors such as whether a power plant provides baseload or backup power. It does not include standards for existing gas-fired generators, which EPA had proposed in 2023 but last year decided to scrap in favor of a "new, comprehensive approach". While the CO2 regulation would be fully repealed, Zeldin said the agency is proposing to only undo last year's "gratuitous" changes to MATS, such as the new lignite standards. "If finalized no power plant will be allowed to emit more than they do now or as much as they did one or two years ago," he said. In addition to repealing the two Biden regulations, EPA is proposing to undo the Clean Power Plan, developed by the agency during the administration of former president Barack Obama. It would do this in part by reversing a previous agency determination that it could regulate greenhouse gas (GHG) emissions from power plants, and by also finding that those emissions "do not contribute significantly to dangerous air pollution." The Clean Power Plan has never been enforced, and the US Supreme Court in 2022 ruled the agency lacked the authority to regulate CO2 emissions from power plants in the way envisioned by that approach. Unlike during Trump's first term, when EPA first sought to repeal the Clean Power Plan, the agency this time around is not proposing any replacement. The previous replacement rule was struck down by the US District of Columbia Circuit Court of Appeals in 2021. The lack of a new rule could make EPA more vulnerable to legal challenges, which are all but certain to be filed by environmental groups and some states. "This administration is transparently trading American lives for campaign dollars and the support of fossil fuel companies, and Americans ought to be disgusted and outraged that their government has launched an assault on our health and our future," Sierra Club climate policy director Patrick Drupp said. Zeldin said he was not concerned about any potential litigation. "I would say with great enthusiasm and excitement for the future, I know we are absolutely going down the right path," he said. Coal and electric sector groups cheered EPA's proposal. "Today's announcement nullifies two of EPA's most consequential air rules, removing deliberately unattainable standards and leveling the playing field for reliable power sources, instead of stacking the deck against them," National Mining Association president Rich Nolan said. EPA in March included the CO2 and mercury rules among 31 Obama and Biden-era regulations and actions it planned to review and potentially repeal. Since then, the White House has identified more than 60 fossil fuel-fired power plants that will have two extra years to comply with the more-stringent MATS, giving them a reprieve while EPA works to formally repeal the regulations. The March announcement also included a reconsideration of the 2009 endangerment finding for GHG emissions, which underpins all of the major climate regulations EPA issued in recent years. "I don't have anything to announce today as it relates to any proposed rulemaking that may be to come on that topic," Zeldin said. EPA will open a 45-day public comment period on each proposed repeal once they are published in the Federal Register . 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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EIA raises US 2026 renewables outlook

11/06/25

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11/06/25

EIA raises US 2026 renewables outlook

Houston, 11 June (Argus) — The US renewable energy fleet remains on track to provide an increasing portion of the country's total electricity over the next two years, even with some changes in the US Energy Information Administration's (EIA) latest projections. Renewable energy is on track to supply almost 1.1bn MWh in 2025 and 1.2bn MWh in 2026, enough to account for roughly 25pc and 27pc of all US generation in those years, EIA said Tuesday in its monthly Short-Term Energy Outlook report. The 2025 estimate is less than 1pc lower than the agency's forecast in May, while the 2026 outlook is about 2pc higher. Renewables in 2024 generated almost 948mn MWh, about 23pc of all US generation. EIA attributes the higher share from renewables to projects coming on line through the end of 2026. The agency expects developers to add about 32,500MW of utility-scale solar to the grid this year, which would surpass the record high of 30,000MW in 2024. EIA anticipates about 7,700MW of new capacity from the wind sector this year. Wind capacity in 2024 expanded by about 5,100MW, its lowest showing since 2014. The month-over-month change in the larger renewables outlook corresponds with higher expectations for wind and solar generation next year. Wind farms are now on track to provide about 506mn MWh in 2026, while utility-scale solar farms will generate around 350mn MWh, each about 2pc higher from May's outlook. If the solar projection bears out, it would surpass hydropower in 2025 as the second most prevalent form of renewable generation in the US. In the Electric Reliability Council of Texas (ERCOT) territory, EIA expects non-hydropower renewable generators are on pace to supply nearly 179mn MWh in 2025, down by less than 1pc from last month's outlook. But the 216mn MWh now anticipated from the sector in 2026 marks an almost 10pc increase from May's predictions for the Texas grid. EIA's lowered its predictions for non-hydropower renewables in the New York Independent System Operator's footprint by less than 1pc for 2025 and by 4pc for 2026, to 11.5mn MWh and just under 13mn MWh, respectively. Revisions to other regional forecasts were minimal. EIA increased its expectations for non-hydropower renewables in the areas managed by the PJM Interconnection, ISO-New England and Midcontinent Independent System Operator by less than 1pc for both 2025 and 2026. Renewable energy resources for EIA's purposes include conventional hydropower, wind, solar projects larger than 1MW, geothermal and certain forms of biomass. By Patrick Zemanek Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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