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Sweden publishes proposal to reduce GHG obligations

  • Market: Biofuels, Oil products
  • 04/07/23

The Swedish government has published a proposal to reduce the country's greenhouse gas (GHG) reduction obligations for gasoline and diesel.

As first agreed in May by the ruling coalition, the proposal states the GHG reduction obligation will be lowered to the EU minimum of 6pc for gasoline and diesel, a drop 34 percentage points for diesel and 6.5 percentage points for gasoline. The change will begin in 2024 and last until 2026.

E10, gasoline with up to a 10pc blend of ethanol, will remains as the standard grade and as such the reduction obligation for gasoline should not be lower than 6 percentage points.

The proposal will scrap Sweden's flexible quota, which allows gasoline obligations to be met by transferring the emissions reductions created by diesel blending once above the initial obligation.

The proposal stated the pre-existing reduction levels for 2027-30 would be cancelled and will be reassessed by parliament at a later date. It said "other socio-economically effective instruments" should be considered in the reassessment while ensuring Sweden's EU commitments are met.

Under current legislation, Sweden aims to reduce its GHG emissions from domestic transport by 70pc in 2030 compared with 2010 levels, excluding domestic aviation. The EU's REDIII legislation would oblige EU countries to cut GHG emissions by 14.5pc in road transport fuel by 2030.

Economic affairs minister Ebba Busch said the changes will reduce fuel costs. Diesel will be 4 kronor/litre ($0.37) cheaper at the pump, according to the proposal, and gasoline SKr0.30/l cheaper in 2024, compared with 2023 prices. Compared with price projections under pre-existing obligations, by 2026 diesel would be SKr7.2/litre cheaper.

The government said that if the changes are adopted, emissions from domestic transport and machinery would increase by around 4mn t in 2024, compared with 2023. When compared with the original targets, this increases to 5.2mn t in 2024, and 6.7mn t in 2026. The proposal is now under consultation until 25 August.

This Swedish change comes as Finland recently proposed to freeze its biofuel mandate for 2024 at 2023 levels, and then rising to 16.5pc in 2025, 19.5pc in 2026 and 22.5pc in 2027. Finland previously cut its 2022 and 2023 targets to 12pc and 13.5pc, respectively, in response to rising fuel prices, but the obligation was to rise to 28pc next year under the existing legislation.

By Portia Kentish

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18/12/25

Viewpoint: Japan's hybrid EV use keeps gasoline in mix

Viewpoint: Japan's hybrid EV use keeps gasoline in mix

Tokyo, 18 December (Argus) — Japan's gasoline consumption will continue falling because of its decarbonisation drive, but the country's gasoline consumption is unlikely to reach zero as gasoline-powered cars and hybrid gasoline-electric vehicles (HEVs) account for a vast majority of newly registered passenger cars. Japan's gasoline sales declined at least over 2016-24, with the exception of a slight year-on-year increase of 0.03pc in 2022, data from the Petroleum Association of Japan (PAJ) show. The country's gasoline sales totalled 330mn bl (904,100 b/d) in 2016, falling to below 280mn bl (767,100 b/d) in 2024. The country's transport sector accounted for 19.2pc of total CO2 emissions in the April 2023-March 2024 fiscal year, according to Japan's environment ministry. Half of the transport sector's CO2 emissions came from gasoline in the 2023-24 fiscal year. Tokyo renewed its global warming countermeasures plan in February 2025, which reiterated its target of having all new car sales be "electrified vehicles" by 2035 and to achieve net-zero CO2 emissions through the vehicle lifecycle by 2050, in efforts to abate emissions. But these "electrified vehicles" do not only refer to fully electric-powered EVs nor fuel cell vehicles (FCVs) but also include gasoline-consuming HEVs and plug-in hybrid electric vehicles (PHEVs). This means that Japanese passenger car owners will likely remain dependent on gasoline, even as gasoline consumption declines, given that Japan's preference for hybrids is likely to sustain its momentum for the foreseeable future. The country's gasoline requirement will fall by 2.4pc to 260mn bl (712,300 b/d) in the April 2026-March 2027 fiscal year, compared with the 2025-26 level, based on Japan's trade and industry ministry Meti's outlook. This downtrend is expected to continue by declines of 2.1-2.5 pc/yr at least until 2029-30, largely because of higher fuel efficiency and wider use of HEVs, Meti said. The number of newly registered passenger cars, including imported cars, totalled slightly below 2.4mn units over January-November 2025, data from the Japan Automobile Dealers Association (JADA) show. Out of this total, gasoline-consuming HEVs accounted for 60pc, and gasoline cars hold a 32pc share. Gasoline-powered cars and HEVs have jointly accounted for around 90pc at least since 2020. The share of HEVs in newly registered cars has also grown consistently every year, from 37.1pc in 2020 to 61.1pc in 2024, mostly replacing the share of gasoline cars, while the share of EVs has stalled at 0.6-1.7pc of the total of registered units every year over the same period, data from the JADA show. "The hybrid trend is likely to remain strong going forward. Compared with the time when it seemed the global shift to EVs would happen decisively and rapidly, the momentum now appears to have slowed somewhat," Japan's trade and industry minister Ryosei Akazawa said at an interview with reporters, including Argus , in October. The shift towards EVs has not been as strong as expected, which could have benefited gasoline car makers. But US tariffs on Japanese automobiles likely eroded the profitability of Japanese automakers, with 15pc of their domestic car output exported to the US in 2024, according to Meti. The US tariff rate was lowered to 15pc from 27.5pc in September, but is still far higher than 2.5pc, the rate before US president Donald Trump's additional 25pc automobile tariff took effect in April. To support Japanese automakers given the challenging tariff environment, Tokyo could freeze its environmental performance tax — a levy of 0-3pc — imposed on car owners at the point of acquisition depending on automobile features, such as fuel efficiency. This move could pave the way for gasoline-powered vehicles to regain momentum or pose obstacles to the expansion of EV cars' market share in the coming years. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Viewpoint: Dutch ticket move to help low-emission fuels

17/12/25
News
17/12/25

Viewpoint: Dutch ticket move to help low-emission fuels

London, 17 December (Argus) — A change in the EU Renewable Energy Directive (RED III) is pushing the Netherlands, a key renewable fuel ticket market in Europe, to pivot from compliance based on energy share to greenhouse gas (GHG) savings, and should benefit fuels with higher emission savings. The Netherlands will switch to GHG-based ERE tickets on 1 January 2026. The mandate will apply retroactively if the legislation is passed beyond that date. The move more closely aligns Dutch compliance with Germany's THG quota and accelerates a broader shift to reward fuels with high greenhouse gas (GHG) savings, as well as RED Annex IX Part A feedstock status, positioning advanced Fame, hydrotreated vegetable oil (HVO) and biomethane as front-runners. RED III's overall 2030 target gives EU member states the option to reduce their GHGs by 14.5pc, or to have a 29pc renewable energy share in their overall fuel mix. This is a significant step-up from RED II, which only required states to have 14pc renewable energy in their mix by 2030. Most major states incentivise the uptake of RED targets through the use of renewable fuel ticket systems. Tickets are used by companies supplying liquid or gaseous fossil fuels in the country and are obligated to pay excise duty or energy tax on fuels. They can be traded to meet obligations and are primarily generated via the blending of renewable fuels into fossil fuels, with additional sources of tickets including electricity used to charge e-vehicles. The Dutch change will benefit fuels with higher emissions savings and move away from a more simplistic approach where one HBE ticket is equal to 1 GJ of energy use, with multipliers available based on feedstock type. The current four HBE categories will expand to 16 types of ERE tickets , defined by transport sector — land, inland waterways and maritime — as well as feedstock. An HBE-to-ERE ratio of 1:46, as per the Dutch Emissions Authority's (NEa) guidance, has already begun to guide transitional pricing. All 2025 HBEs must be submitted by 30 April, after which any non-redeemed HBEs will be converted into EREs, subject to a legal cap on the amount that can be carried from year to year. Premiums for RED Annex IX Part A fuels should grow as demand for corresponding ERE-Gs does the same. But ERE-B values — comprising fuels from RED Annex IX Part B feedstocks — will be affected by a mismatch between RED III vs FuelEU Maritime rules . Shipping mismatch Under FuelEU, a separate legislation from RED III, Part B fuels remain eligible, whereas the domestic transposition of RED III means EREs count the same as using fossil fuel for only the maritime obligation. Shipping vessels are likely to either bunker elsewhere, or opt for Part A fuels that can meet both mandates. Maritime suppliers can source up to 0.9pc of their mix from road and inland waterways, preserving a narrow role for Part B fuels via cross-sector ERE flows. But EREs from shipping cannot be used by land suppliers. Aviation fuel blending will no longer generate Dutch tickets, removing a source of Part B tickets, as the bio-component of sustainable aviation fuel (SAF) has mostly been produced from used cooking oil. Overall, liquidity in the Netherlands will fragment by sector — LREs for land, BREs for inland shipping and ZREs for maritime shipping — all taking a Dutch acronym. Across the EU, GHG-based transport fuel mandates with tight feedstock caps should tighten supply of Part A fuels and renewable fuels from non-biological origin (RFNBOs), while remaining energy-based systems may lean on conventional and Part B biofuels. The Dutch-German axis, as the largest GHG-based ticket markets, may increasingly anchor to Part A fuel tickets. Advanced biofuel suppliers will be monitoring which market provides better ticket value for their fuel at a given time. France also plans to replace its energy-based TIRUERT tickets with GHG-based IRICCs in 2027 . Outside the RED III remit, the UK is consulting on whether to follow suit as it updates its RTFO scheme; consultation updates are expected in early 2026, and any resulting changes are expected in 2027. By Madeleine Jenkins Fuel ticket systems in Europe GHG-based renewable fuel ticket systems Germany – THG (€/t CO₂e) Austria - THG (€/t CO₂e) Netherlands – ERE (€/kg CO₂e) Energy-based renewable fuel ticket systems Belgium – HEE (€/megajoule) Ireland – RTFO (€/megajoule) Italy – CIC (€/10 Gcal) France - TIRUERT (€/m3, €/MWh) Spain – CCRs (€/toe) Portugal – TbD (€/toe) Volumetric-based renewable fuel ticket systems UK – RTFO (£/litre) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EcoCeres exports first SAF output from Malaysia's Johor

17/12/25
News
17/12/25

EcoCeres exports first SAF output from Malaysia's Johor

Singapore, 17 December (Argus) — Hong Kong-based biofuels producer EcoCeres has exported the first sustainable aviation fuel (SAF) volumes produced at its new hydrotreated biofuels plant in Johor, Malaysia, according to a company LinkedIn post and company sources. EcoCeres exported 10,000t of SAF last week, a company source said. The cargo was purchased by Mitsui Energy Trading Singapore (Mets), a subsidiary of Mitsui, and was loaded on a vessel that sailed from Tanjung Langsat and is bound for Europe, EcoCeres said in its LinkedIn post. The Medium Range vessel Stolt Glory loaded 10,000t of SAF from Tanjung Langsat on 5 December, and is due to reach Rotterdam in mid-January, according to Kpler data. But another company source declined to confirm if this was EcoCeres' cargo. The biofuels producer previously produced its first on-specification SAF volumes at Johor in October . The plant, which can produce a maximum of 420,000 t/year of SAF and hydrotreated vegetable oil (HVO), is now running at full rates, a company source said. The Argus fob ARA SAF price fell to nearly four-month lows of $2,247/t on 3 December, but has since risen slightly to $2,281/t as of 16 December. The decline was likely on the back of a lack of urgency among EU suppliers to fulfill mandates at the start of the new obligation year, although some volumes were traded this week , possibly because buyers were locking in deals in advance. EcoCeres also operates another 350,000 t/yr SAF and HVO plant in Jiangsu, China. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US House clears hurdle to pass permitting bill

16/12/25
News
16/12/25

US House clears hurdle to pass permitting bill

Washington, 16 December (Argus) — Republicans in the US House of Representatives have overcome an initial obstacle to passing a marquee permitting overhaul bill after committing to vote on key amendments that would strip out potential benefits for offshore wind. Republicans in the House voted 215-209 in a vote on Tuesday to approve a rule that will dictate the terms of debate for votes later this week on the SPEED Act, which has become the focus of bipartisan efforts to fast-track the permitting process for pipelines, electric transmission lines, railroads and other infrastructure. A group of far-right conservatives initially voted against the rule, but most reversed course during the vote in exchange for revisions that have yet to be made public. The Tuesday vote was one of the last remaining hurdles to House passage of the SPEED Act, which is expected to pick up some Democratic votes when it comes up for a final vote later this week. The House majority typically is responsible for putting up all the votes for a rule, meaning it would only take a few Republicans to block bill debate. Republicans were uncertain they would have enough votes for the rule, as far-right conservatives such as US representative Andy Harris (R-Maryland) and others were lobbying for changes. On Monday, US representative August Pfluger (R-Texas) urged attendees of a conference to put as "much effort as you possibly can" into persuading wavering Republicans to support the permitting bill. Pfluger is the chair of the Republican Study Commission, a caucus that represents a majority of House Republicans. "Go talk to them and let them know how important this is," Pfluger said during an event organized by the think tank the Conservative Coalition for Climate Solutions. Ahead of the vote, an industry coalition on Tuesday released a joint letter offering "strong support" for the bill. Among the signatories were the American Petroleum Institute, the US Chamber of Commerce, the Association of American Railroads and the US LNG Association. President Donald Trump has yet to take an explicit position on the SPEED Act, but administration officials are optimistic permitting legislation could be enacted. "I think we are at a time where the chance of a real permitting reform bill is higher maybe than it's ever been," US energy secretary Chris Wright said at the event on Monday. The SPEED Act would focus on the implementation of the National Environmental Policy Act (NEPA), a decades-old law that requires federal agencies to prepare environmental reviews of infrastructure projects. Pipeline companies and renewable energy developers alike blame the law for costly delays, both because of the time it takes for agencies to issue reviews and then the risks that permits will be thrown out because of lawsuits. The bill would narrow the scope of environmental reviews, aligning with a unanimous US Supreme Court ruling this summer. But the bill's most significant changes would make permits more durable. Even if a court found a NEPA review was flawed, the bill would keep permits intact during further analysis. And in a last-minute change, the bill would offer more permit "certainty" by limiting the government's ability to rescind prior approvals. That could protect pipeline permits such as the now-canceled Keystone XL pipeline, while also stopping Trump from halting more offshore wind projects. But the permit certainty language drew concern from far-right conservatives who oppose offshore wind. House Republicans in response agreed to vote on an amendment sponsored by Harris and others that would remove the "permit certainty" changes. Two other amendment votes also backed by Harris would stop expedited permitting treatment in the SPEED Act for offshore wind or any project that Trump has sought to block. Passage of those amendments could cost some Democratic support for the bill. Even if the bill passes, it is expected to be subject to major changes in the US Senate to attract enough support from Democrats to prevent a filibuster. Senate Democrats are hoping to insert language that would prevent what they describe as a "solar ban" being enforced by the Trump administration. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU eases ICE phase-out with 2035 CO2 car target: Update

16/12/25
News
16/12/25

EU eases ICE phase-out with 2035 CO2 car target: Update

Adds details on credits, transport commissioner comment in paragraphs 4-6 Brussels, 16 December (Argus) — The European Commission has proposed a new 90pc cut in car fleet emissions by 2035, replacing the previously agreed 100pc target that would have effectively phased out the sale of internal combustion engine (ICE) vehicles from that date The plan would allow some new ICE vehicles to remain on sale beyond 2035, alongside plug-in hybrids, range extenders and mild hybrids, as well as electric and hydrogen cars. The remaining 10pc of emissions would need to be offset through low-carbon steel, e-fuels or biofuels, according to the commission. The proposals need to be adopted by a majority in the European Parliament and among EU states. Automakers could also "bank and borrow" credits between 2030-32 to help meet the existing 2030 target of a 55pc cut from 2021 levels. Under the new proposals, manufacturers using these flexibilities would only need to achieve a 40pc fleet-average reduction, down from a previously planned 50pc. The commission indicated that credits for greenhouse gas (GHG) savings from e-fuels and biofuels can compensate up to 3pc of manufacturers' reference targets for 2035 and low-carbon steel credits can compensate for a further 7pc. Transport commissioner Apostolos Tzitzikostas said the credit system will boost uptake of sustainable fuels. "This is a clear signal than other technologies than battery electric vehicles (BEV) can be put on the market after 2035," said Tzitzikostas. Expanded carbon-neutral criteria would allow sustainable biofuels to help meet the targets that currently require 0g/km from 2035. EU renewable ethanol group ePure said emissions from ethanol were 79pc lower than fossil fuels in 2024, in line with previous years. The European Biodiesel Board reported savings of 77-81pc for biodiesel, using the official fossil fuel comparator of 94g of CO2e/MJ. German MEP Peter Liese criticised the original ICE ban, but said industry problems stem from market shifts, not from Brussels. "The industry must stop shifting the blame for its own mistakes and for market developments, for example in China, onto Brussels," he said, adding that he will push for green steel recognition before 2035. 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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