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NGOs pitch Amazon preservation funding to Cop 30

  • Market: Agriculture, Emissions
  • 04/07/25

Non-governmental organizations (NGOs) in Brazil's northern Amazon region set up a plan to draw investments to conservation, restoration and sustainable development in the biome.

The plan — submitted to the UN Cop 30 climate summits presidency on 4 July — suggests redirecting subsidies from high-greenhouse gas emission activities to sustainable projects and promoting environmental services, as well as fighting against illegal economic practices such as animal trafficking and property speculation of public lands, according to the NGOs.

The Amazon gathered around $5.8bn in investments between 2013-22, while it is worth at least $317bn/yr in ecosystem services, such as climate regulation — vital for agriculture and hydroelectric power generation — and biodiversity, according to the World Bank. The institution also estimated that $7bn would be necessary to preserve the biome against deforestation and ward it off from the tipping point, when it would suffer permanent damage like desertification and severe changes in the rainfall pattern.

Main financial resources for the plan may come from the Tropical Forest Forever Facility (TFFF) initiative, which Brazil launched in 2023 to raise funds to protect tropical forests and combat deforestation, the NGOs said. Considering the program's annual raising of $5bn, the groups expect that $2bn of it will fund the Amazon forest preservation.

Another proposal includes the creation of a Global Declaration for Amazon to engage countries enrolled in the UN Framework Convention on Climate Change (UNFCCC) in contributing to strengthen the biome against climate change.

Brazil will host UN Cop 30 climate summit in November, when it expects to deliver a roadmap to increase global climate finance to $1.3 trillion/yr.


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09/07/25

Australian liquid fuels policy to free up ACCUs: CEFC

Australian liquid fuels policy to free up ACCUs: CEFC

Sydney, 9 July (Argus) — Annual demand for Australian Carbon Credit Units (ACCUs) could be reduced by as much as 7.5mn t of carbon dioxide equivalent (CO2e) by 2050 if Australia adopted policy changes to develop a low-carbon liquid fuels (LCLF) industry, according to a report this week. Encouraging companies to reduce direct scope 1 emissions through changes to the federal safeguard mechanism and/or voluntary adoption would drive the development of an Australian LCLF market and free up ACCUs for use in sectors that cannot achieve on-site decarbonisation due to technical challenges, state-owned green investment fund Clean Energy Finance (CEFC) said in a report authored by consultancy Deloitte . Under its central case scenario, which would involve constraining the use of carbon offsets, CEFC said that a 7bn litres/yr LCLF market could be created by 2050, abating up to 12mn t CO2e in 2040 and 20mn t CO2e in 2050 as a result. Annual ACCU demand across six sectors covered by the report — mining, aviation, rail, heavy freight, maritime, and construction — could be reduced by around 6.8mn t CO2e by 2050 in that case, to 2.4mn t CO2e/yr. Demand for ACCUs could reach as low as 1.7mn t CO2e by 2050 under an accelerated scenario, which would involve EU-style mandates for LCLF. Demand for ACCUs would be around 9.2mn t CO2e/yr under the base scenario, which assumes a market-led transition in which carbon prices remain low and LCLF demand is driven by a small group of customers willing to pay significant premiums to reduce their scope 3 emissions. 30pc cap under the safeguard mechanism The central case scenario assumes a hypothetical government intervention to cap the use of ACCUs under the safeguard mechanism at 30pc of the baseline for liquid fuel-related emissions. Currently, there is no limit to the number of ACCUs or safeguard mechanism credits (SMCs) that facilities can use to manage their excess emissions under the scheme, but those that surrender carbon units equivalent to 30pc or more of their baselines need to publish a statement explaining why they have not undertaken more on-site abatement activities . The central case scenario also assumes the removal of baseline adjustments for trade-exposed baseline-adjusted facilities . Adopting a minimum 70pc direct on-site decarbonisation would trigger a positive supply-side response, driving significant technology deployment and competition between pathways and feedstocks, the CEFC said. Stakeholders claim that the current safeguard mechanism and ACCU pricing are not enough to drive early LCLF uptake, the report said. Policy intervention is needed to accelerate the bridging of the cost gap between the LCLF production cost and the ACCU price, which is currently not expected to happen until the 2040s, the report said. A market-led transition, on the other hand, would lead to greater pressure on the ACCU market, with up to 7.35mn t CO2e of ACCUs needed to meet demand in 2035 and 15.5mn t CO2e in 2050. ACCU supply reached an all-time high of 18.78mn in 2024 and is forecast at 19mn-24mn for 2025 . But the industry needs to boost future issuances to address an expected shift in the supply-demand balance within a few years . 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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Paving Amazon road may spoil Brazil climate target


08/07/25
News
08/07/25

Paving Amazon road may spoil Brazil climate target

Sao Paulo, 8 July (Argus) — Brazil suspended the paving and reconstruction of the northern BR-319 highway, which would drive up deforestation and make it impossible for Brazil to meet its climate targets by 2050, according to the environment ministry. Reconstructing the highway would increased deforestation and generate 8bn metric tonnes (t) of CO2 by 2050, according to the environment ministry. This would run counter to Brazil's efforts to eliminate deforestation — both legal and illegal — by 2030, to meet its emissions reductions targets under the Paris climate agreement. A federal court decision from October 2024 allowed plans by former-president Jair Bolsonaro's administration to rebuild and pave BR-319 to move forward through a preliminary license. The federal court reassessed the case on 2 July, suspending the preliminary license for the second time. The first suspension dates back to July 2024, when a federal environmental court stopped the work under an argument of irreversible risks to the Amazon forest if the concession remained active. The 918km BR-319 connects the capitals northern Amazonia and Rondonia states, Manaus and Porto Velho, both in the Amazon forest biome. While the preliminary license was in force, deforestation around the highway more than doubled, including in conservation areas, Brazilian climate network Observatorio do Clima said. An increase in deforestation could cut water supply to large cities in the center-south and reduce agriculture and cattle raising by interfering in the rainfall pattern, according to the ministry. It also added that 95pc of Amazon's deforestation happens within 5.5km of highways. Brazil's environmental watchdog Ibama has strengthened its monitoring in the BR-319 to prevent deforestation and other illegal practices in the surrounded areas. Ibama agents have seized tractors and power generators near Tapaua city, in Amazonas, which were used to support illegal activities in the Amazon forest, such as wood extraction. Ibama also applied R8mn ($1.46mn) in environmental fines and blocked access to 1,600 hectares (ha) of deforested areas to fight ongoing illegal activities, it said today. 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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EU Parliament disputes 2040 climate file


08/07/25
News
08/07/25

EU Parliament disputes 2040 climate file

Brussels, 8 July (Argus) — The European parliament will vote tomorrow on whether or not to use an urgency procedure in examining the legal proposals to set a 2040 climate target for the bloc. The discussions overshadowed EU climate commissioner Wopke Hoekstra's presentation of the proposal. "The Left, Renew and Green activists are trying to manipulate the process and seize control," said Anders Vistisen, a Danish member of the far-right Patriots for Europe group. The group has been given the task of leading the work on amending the bloc's climate law to set an EU-wide 2040 target. The commission's proposal involves a goal of reducing EU emissions by 90pc by 2040 from 1990 levels. The urgency procedure would give greater powers in discussing the 2040 proposals to the chair of parliament's environment committee, Antonio Decaro, an Italian MEP from the centre-left S&D group. The S&D put forward the urgency procedure together with the Greens and Left. Parliament's largest centre-right EPP group did not sign. "They'll probably need some EPP members," an official said. The Patriots group includes parties such as Hungary's Fidesz, France's Rassemblement National, Italy's Lega Nord and Spain's Vox. Vistisen said the Patriots group completely rejects the "unrealistic and ideological" commission approach. "The commission wants to push through a 90pc reduction. We're making it clear — that's not going to happen." Former environment committee chair Pascal Canfin now expects greater co-operation between "pro-European" groups. "It will force the pro-European groups to work together to carry this key proposal to an agreement before the [UN climate conference] Cop 30 in Belem," said Canfin, a French liberal. The dispute overshadowed Hoekstra's presentation of the 2040 proposals to parliament. "What we do need, particularly for these type of policies, are solid majorities. And yes, sometimes that takes more time than you anticipate beforehand," Hoekstra said. Speaking for the EPP, Lidia Pereira called for flexibility and warned against de-industrialisation. "More important than setting a numerical target is making sure we stay on the right course," Pereira said. The commission's proposal includes several possible "flexibilities" for the target, including allowing a "limited" contribution of international carbon credits issued under Article 6 of the Paris climate agreement to count towards the goal from 2036, and the use of domestic permanent carbon removals in the EU emissions trading system. "The proposals for flexibility are just green colonialism. It will help rich countries such as the Netherlands or Germany, large multinational corporations and poor countries and small companies will pay," said Alexandr Vondra, Czech member of the conservative ECR group. German S&D member Tiemo Wolken criticised the commission for coming forward with a 2040 proposal "weeks" before international climate talks in Belem, Brazil. "There's not enough time in the European Parliament and in the council to discuss it," said Wolken. The summit is scheduled for November. "The 2040 climate now is in the hands of the far right, the people who deny the climate crisis," said Austrian Green Lena Schilling, noting the importance of the urgency procedure to save the target. "We don't need 85pc, not 87pc — minimum 90pc," Schilling said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU proposes support package for chemicals sector


08/07/25
News
08/07/25

EU proposes support package for chemicals sector

Brussels, 8 July (Argus) — The European Commission today proposed a package of measures to support the EU chemicals sector, aiming to address high energy costs, global competition and weak demand. The plan includes extending emissions trading system (ETS) compensation to more producers and simplifying fertilizer registration rules. The commission said the simplification measures could save the sector €363mn/yr. The proposals are part of a broader action plan to boost competitiveness and secure supply chains. A new Critical Chemicals Alliance will identify key production sites in need of policy support, including on trade issues such as supply chain dependencies and market distortions. The commission also pledged to apply trade defence measures more quickly and expand chemical import monitoring under an existing surveillance task force. While the commission stopped short of proposing a Critical Chemicals Act — which would legally define specific chemicals for support — it named steam crackers, ammonia, chlorine and methanol as "essential" to the EU economy. The alliance will aim to align investment and co-ordinate support, including through the bloc's Important Projects of Common European Interest (IPCEI) programme. The commission also decided on new rules legally defining low-carbon hydrogen today and said it plans to allow more state aid for electricity-intensive chemical producers by the end of the year. It also encouraged the use of carbon capture, biomass, waste and renewables. EU industry commissioner Stephane Sejourne said the action plan uses "all levers" to put the chemicals sector back on a growth track, with measures to retain steam crackers and other key chemical assets in Europe. He also highlighted efforts to secure domestic demand for "clean and made-in-Europe chemicals". The commission will align fertilizer registration rules with the EU's REACH chemicals framework, applying standard REACH provisions and streamlining the assessment of micro-organisms used in fertilizers. Officials said the changes will maintain safety and agro-economic efficiency standards while allowing a broader range of micro-organisms. For ETS indirect cost compensation, the commission plans to expand the list of eligible chemicals — including organic chemicals and fertilizers — but must first update existing state aid guidelines, a senior EU official said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil's Mato Grosso estimates corn output at 54mn t


07/07/25
News
07/07/25

Brazil's Mato Grosso estimates corn output at 54mn t

Sao Paulo, 7 July (Argus) — Brazilian central-western Mato Grosso state will produce nearly 54mn metric tonnes (t) of corn in its 2024-25 season, a 7.2pc rise from the prior month's forecast. That is also 14.5pc above the 47.2mn t produced in the 2023-24 crop, according to the state's institute of agricultural economics Imea. The productivity outlook increased to 126.3 60kg bags/hectare (ha) from 117.7 bags/ha in June's estimate. That is 9.2pc above the 115.6 bags/ha in the 2023-24 crop. That would be a record for the state and was revised upwards mainly because of rainfalls that favored crop conditions this cycle, even for those areas where planting took place after the ideal planting window. The expected planted area remained stable from June's outlook at 7.13mn ha, a 4.9pc hike from the prior cycle. Cotton lint Imea increased its outlook for 2024-25 cotton lint production to 2.79mn t, slightly above the 2.76mn t in June's estimate. That is a 7.4pc hike from 2023-24 production. The planted area increased by 1.2pc on the month to 1.5mn ha, almost in line with the previous month's outlook. The area is 4.2pc ahead of the 2023-24 season. Yield estimates remained at 297 15kg bags/ha. Soybeans Mato Grosso's 2025-26 soybean crop outlook remained at 47.2mn t, stable for the third consecutive month but down by 7.3pc from 2024-25. Soybean yields are expected to reach 60.45 60kg bags/ha, flat from June's outlook and an 8.8pc drop from the 66.29 bags/ha in the 2024-25 season. The expected planted area remained at 13mn ha, 1.7pc above the 12.8mn ha in 2024-25. The current soybean yield outlook is based on the average of the last three cycles and should remain stable until planting — which begins in mid-September — progresses. By Sofia Zizza Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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