Brazil's Amazon Fund approves over R1bn in 1H

Market: Emissions
17/06/25

Brazil's Amazon Fund has approved about R1.19bn ($215mn) to finance projects submitted in the first half of 2025, about 25pc more than it financed in all of last year and double the financing in 2023.

The fund — which issues grants to projects that prevent, monitor and combat deforestation while promoting conservation and sustainable development in the Amazon forest — invested more in the first six months of the year than it has in any year since project funding started in 2009, according to Brazil's development bank Bndes and environment ministry (MMA).

The fund approved over R947mn last year and R584mn in 2023. The government reactivated the fund in 2023 — initially launched in 2008 — after four inactive years, when the administration of former president Jair Bolsonaro stopped backing new projects. The fund has released R2.7bn since 2009.

The fund so far this year has directed R825mn to the Fortfisc deforestation program and R360mn to diverse projects aiming to combat and prevent deforestation. The most recent funding follows new approval standards on structuring and strategic projects.

The Amazon Fund has R5.6bn under management in 133 assets, such as the Restaura Amazonia, which has been backing ecological and productive restoration projects for 16 years.

Payments have also picked up in the first half this year, as it released R158mn from current approved programs to combat deforestation and boost revenue generation in traditional communities. This amount represents 75pc of last year's payments of R209mn and triple the 2023 payment of R51mn.

Norway is the fund's largest donor, having pledged R3.5bn, followed by German development bank KfW with around R388mn and the US with R291mn. Other donors include the UK, Switzerland, Japan, Ireland and Denmark.

Brazil is working to eliminate deforestation — both legal and illegal — by 2030, to meet its emissions reductions targets under the Paris climate agreement. Deforestation is one of Brazil's flagship issues for the UN Cop 30 summit, which it will host in northern Para state in November.

By João Curi

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11/07/25

Cercarbono launches ELV recycling carbon methodology

Bangkok, 11 July (Argus) — Global environmental certification standard company Cercarbono announced a world-first methodology for generating carbon credits from end-of-life vehicle (ELV) recycling at the Asia Climate Summit in Bangkok on 9 July. The methodology establishes the criteria for quantifying greenhouse gas (GHG) emission reductions from the recovery and recycling of post-consumer materials in formal sector facilities. The methodology covers only post-consumer ELV materials, including metals, plastics and glass, recovered as raw materials that match the quality of virgin materials, the methodology documents show. Projects must comply with Cercarbono's additionality guidelines. It calculates emission reductions as the baseline production from virgin raw materials minus the project's production from recycled materials. Projects must also follow all legal, environmental, labour, health and safety regulations, apply Cercarbono's Safeguarding Principles and report contributions to the Sustainable Development Goals (SDGs) using the SDGtool assessment mechanism. Cercarbono and Mumbai-based Meta Materials Circular Market (MMCM) jointly developed the methodology. MMCM specialises in developing a digital ecosystem for the circular economy in the automotive industry. This innovative methodology will enable ELV recycling systems to benefit from carbon pricing, MMCM said. The initiative has the potential to unlock 10bn rupees ($116mn) in carbon funding over the next decade, MMCM chief executive Nitin Chitkara said. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US biofuel support clears way for new crush capacity

10/07/25

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10/07/25

US biofuel support clears way for new crush capacity

New York, 10 July (Argus) — North American oilseed crushers told Argus that projects to increase processing capacity are on track for the next year, potentially enabling more renewable fuel production. After a difficult start to the year for biofuel producers, US policymakers are increasingly making clear that they want refiners to up their output in future years and rely more on domestic feedstocks like soybean oil. That could pave the way for more oilseed crush capacity to come online, after some facilities delayed or cancelled plans over the last year on stagnant demand. Companies confirmed to Argus that more than 620,000 bu/d of new soybean and canola crush capacity were on track to come online in North America in the next year, and other facilities that did not respond to requests for comment have plans in the coming years too. Greater vegetable oil supply also could at least partly address concerns from oil and biofuel refiners that Republicans' protectionist approach to biofuels threatens feedstock shortages and price spikes. A multi-seed crush facility under construction in Mitchell, South Dakota — which will be able to process up to 96,000 bu/d of soybeans — is scheduled to start up this October, South Dakota Soybean Processors chief executive Tom Kersting told Argus. US crush company Ag Processing similarly said that a new 137,000 bu/d soybean crush plant in David City, Nebraska, will open "later this year". In Canada, Cargill confirmed that a 121,000 bu/d canola processing plant in Regina, Saskatchewan is also on track to open this year. In the first half of next year, French agribusiness Louis Dreyfus said it plans to complete two major projects in North America. The company plans to open a 151,000 bu/d soybean crush plant in Upper Sandusky, Ohio, and to double capacity to more than 240,000 bu/d at a canola crush facility in Yorkton, Saskatchewan. US soybean oil futures have climbed by 12pc in the past month on recent policy shifts, providing more incentive for processors — already crushing more soybeans than ever before — to expand production. The US recently proposed record-high biofuel blend mandates for the next two years, projecting that domestic soybean oil production could increase by 250mn USG/yr. And President Donald Trump over the weekend signed legislation that retools a crucial US tax credit to increase subsidies for crop-based fuels. Canadian canola processors, which depend on US incentives because Canada's biofuel sector is far smaller, benefit less from some of these policy shifts. While US fuels made from Canadian feedstocks can still claim the tax incentive next year, the Trump administration has proposed halving credits generated under the biofuel blend mandate for fuels made from foreign feedstocks. That makes US soybean oil a far more attractive input for US refiners than Canadian canola oil. A Canadian farm cooperative earlier this year paused plans for a combined canola crush and renewable diesel plant in Regina, Saskatchewan, citing "regulatory and political uncertainty". And Bunge was vague about its plans for building the world's largest canola crush plant in the same city, which was initially envisioned to start up last year. The US-based agribusiness, which recently took over the project with its acquisition of Viterra, told Argus it was "focused on integration to ensure a smooth transition for our customers" and "may be able to provide an update in the near future". Even then, canola oil stands to benefit from increased demand from food companies if more US soybean oil is diverted to fuel markets. And despite recent struggles for other Canadian biorefineries, ExxonMobil subsidiary Imperial Oil has plans to soon open a 20,000 b/d renewable diesel plant in Alberta that will draw on canola oil. Canadian policymakers have taken steps to assuage local feedstock suppliers and refiners, including a domestic renewable fuel mandate in British Columbia and a proposed mandate in Ontario. Biofuel production and oilseed crush margins also will depend on interactions with other policies, including a temporary tax break through 2026 in the US for small biodiesel producers — historically more reliant on vegetable oils than more versatile renewable diesel plants — as well as low-carbon fuel standards in the US west coast region and Canada. The perennial risk for any company is that policy, especially around biofuels, often swings unexpectedly. 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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EU ministers discuss 2035, 2040 climate target setting

10/07/25

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10/07/25

EU ministers discuss 2035, 2040 climate target setting

Brussels, 10 July (Argus) — The EU needs to set its 2040 climate target and derive its 2035 nationally determined contribution (NDC) — climate plan — to the Paris climate agreement from it, European climate commissioner Wopke Hoekstra reiterated today. But France and Hungary's environment ministers have suggested focusing on the EU's 2035 climate target first. European climate commissioner Wopke Hoekstra has repeated the need to first have a "conversation" on setting the bloc's 2040 climate target and only then deriving the EU's 2035 NDC. "That is the way we will approach it," Hoekstra said before an informal meeting of environment and climate ministers in Denmark. This comes after members of the European Parliament rejected the idea of a fast-track procedure for the 2040 target on 9 July . France's environment minister, Agnes Pannier-Runacher, said that the first topic to discuss was the EU's NDC, ahead of the UN Cop 30 climate talks in Belem, Brazil, in November. There is "the question as well of our [2040] objective under the renegotiation of the climate law", she said. Asked about a two-step approach for the setting of the 2040 target and the 2035 goal, Pannier-Runacher said she was "open to all discussions as long as the agenda on competitivity is clear" and goes beyond words. This comes after French president Emmanuel Macron said at the end of last month that setting an EU target for 2040 is not a must for the Belem climate talks. Pannier-Runnacher said that the 2035 target was between 66.5pc, if derived from current efforts to reduce greenhouse gas (GHG) emissions, and 71.5pc, if taking into account the European Commission's proposal to cut GHG emissions by 90pc by 2040 from 1990 levels, accounting for "flexibilities". The commission's proposal includes several flexibilities for the 2040 target, including allowing a "limited" contribution of international carbon credits issued under Article 6 of the Paris agreement to count towards the goal from 2036, and the use of domestic permanent carbon removals in the EU emissions trading system. Hungary's environment state secretary Aniko Raisz said discussions on the NDC and the 2040 climate goal should be separated, because the latter "cannot be rushed" and "the issue won't be finished by the end of September as it needs a "thorough impact assessment". NDCs need to be submitted to the UN by September to be counted in a synthesis report set to ground climate discussions in Belem. Drawing a line between the EU's 2030 and 2050 targets, the 2035 goal for emissions reductions could be over 66pc, Raisz said, adding that NDCs were non-binding commitments. German climate action minister Carsten Schneider did not seem phased by a short timeline to reach an agreement on a 2040 goal and an NDC, which is Berlin's preference. "If the time is long, decisions are postponed," he said. "If Europe is not able to manage that nobody will," he said, citing China, Brazil, India and the US. "We think there's a logic in setting the 2040 target and out of that extracting the 2035 target," Danish climate minister Lars Aagaard Moller said. "That is still the basis for the discussion." Moller chairs meetings of EU climate ministers until the end of December. 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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Japan’s Sumitomo to invest $10bn in UK clean energy

10/07/25

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10/07/25

Japan’s Sumitomo to invest $10bn in UK clean energy

Tokyo, 10 July (Argus) — Japanese trading firm Sumitomo has agreed to invest a total of £7.5bn ($10.2bn) by 2035 in key clean energy projects in the UK. The agreement was made with the UK's Department for Business and Trade's Office for Investment on 9 July. The £7.5bn total includes investments Sumitomo made before this deal. The investments will be focused on key offshore wind and hydrogen projects. Sumitomo is also actively exploring the commercialisation of next-generation technologies such as fusion energy and energy management with storage solutions, the firm said. Sumitomo did not disclose more details on what projects it will invest in, when requested for comment. Sumitomo is currently involved in a low-carbon hydrogen production project at the Bacton gas terminal in north Norfolk, CO2 storage in the North Sea and the Peak Cluster CO2 shipping project. The trading house has also invested in offshore wind power businesses. Sumitomo chose to partner with the UK because of the government's support for clean energy businesses, said the firm, and it intends to enhance its collaboration with the UK to develop its clean energy portfolio. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australian carbon industry criticises key method update

09/07/25

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09/07/25

Australian carbon industry criticises key method update

Sydney, 9 July (Argus) — Australian carbon industry member organisation Carbon Market Institute's (CMI) taskforce on the long-planned Integrated Farm and Land Management (IFLM) carbon credit method has urged the government not to further delay development of the method, following an update today. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) said today that there were "considerable technical issues yet to resolve" on key components of the planned Australian Carbon Credit Unit (ACCU) method — the first in the country to combine multiple activities that store carbon in soil and vegetation in a single method . It aimed to deliver an exposure draft method to the Emission Reduction Assurance Committee (Erac), the statutory body responsible for ensuring the integrity of Australia's carbon crediting framework, "by the end of 2025". Erac would need to assess the draft before leading a public consultation, which would then help inform its decision to recommend the method to assistant minister for climate change and energy Josh Wilson. The DCCEEW's update suggests the method would be very unlikely to be legislated this year as expected by some in the industry, with the delay to further impact the industry need to boost future ACCU issuances to address an expected shift in the supply-demand balance within a few years . "CMI and the IFLM taskforce have been vocal about the market impact of the protracted delays in the development of the IFLM method and the current timeline is inadequate and lacks the urgency and required collaboration to finalise a technical draft," IFLM taskforce co-chairs, carbon project developer Climate Friendly co-chief executive Skye Glenday and carbon developer Australian Integrated Carbon chief executive Adam Townley, said in a statement sent to Argus . The taskforce is calling for a commitment to a legislative draft to be put before Erac in September. Four modules proposed The DCCEEW is proposing that the method includes four activity modules setting out different abatement activities, with project proponents able to undertake one or more modules in a project. Modules 1 and 3 generally have a strong evidence base and well-known policy and legislative positions, as they would be based on the Native Forest from Managed Regrowth and Reforestation by Environmental or Mallee Plantings methods, respectively. But module 4 would be based on the Soil Organic Carbon 2021 method, which is currently being reviewed by Erac. This means "more work may be required" to adequately address the review's recommendations, the DCCEEW said today. Module 2 is the one facing "considerable technical issues yet to resolve", according to the DCCEEW. While module 1 would credit abatement for activities that promote the regeneration of native forest on land that had been comprehensively cleared and kept that way by mechanical or chemical destruction, module 2 would credit abatement for regeneration on land previously suppressed by other management actions, such as grazing pressure. "The department recognises regeneration under this module would be a result of multiple drivers, including rainfall variability, and that a management signal from the permitted activities may not always be clear," it said. The greater uncertainty in the attribution of the project activity to carbon stock change means a higher risk of not meeting Erac's Offsets Integrity Requirements, it warned. Taskforce calls for one regeneration activity module The DCCEEW established two new stakeholder reference groups to help it address the more complex method components, with the first meetings held in June. But while welcoming the creation of the groups, the CMI IFLM taskforce co-chairs said they were concerned with the ongoing delays with the method development and the potential limitation of the proposals published today. The proposed method framework continues to be based on binary "cleared/uncleared" land classifications , and could limit IFLM's national application and scalability, they said. The suggestion that there are significant issues around the attribution of regeneration to management changes is "inaccurate and contrary to the weight of evidence", including several government reviews of the human-induced regeneration ACCU method, which expired on 30 September 2023, they noted. "From an IFLM taskforce perspective, there should be one regeneration activity module that is nationally applicable and based on a land condition framework," they added. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil's Amazon Fund approves over R1bn in 1H

Related news posts

Cercarbono launches ELV recycling carbon methodology

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US biofuel support clears way for new crush capacity

EU ministers discuss 2035, 2040 climate target setting

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Japan’s Sumitomo to invest $10bn in UK clean energy

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Australian carbon industry criticises key method update

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