South Korea joins global methane pledge

Spanish Market: Electricity, Emissions
01/11/21

South Korea is committed to lowering methane emissions by 30pc by 2030 from 2020 levels as it joins the "global methane pledge," President Moon Jae-in said at the UN Cop 26 climate conference today.

The initiative to reduce global methane emissions by 2030 was launched by the US and EU in September, under which so far 30 countries have agreed to reduce their methane emissions by 30pc by 2030 .

"Methane, a much more potent greenhouse gas than CO2, holds the key to tackling the climate crisis", Moon said, answering calls to step up emission cuts to meet the 2050 net zero target.

Moon also emphasised the need to reduce the use of coal to phase it out entirely by 2050, with eight coal-fired power plants already having been decommissioned earlier than scheduled since the launch of his government. He added that two more plants will be shut down before year-end.

Moon reaffirmed the country's commitment to raise its greenhouse gas emission reduction target to 40pc by 2030, calling it a "bold" and "herculean task" that demands steep emission cuts over a short time period. The country had previously envisaged emission reduction cuts of 26pc over the same period.

By Florence Schmit

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06/03/26

Calif. refiners warn emission rules risk closures

Houston, 6 March (Argus) — US refiners in California including PBF Energy and Chevron strongly oppose proposed state emissions rules, saying the rules will lead to more closures and spiking fuel prices for consumers. The California Air Resources Board (CARB) is seeking to remove 118mn metric tonnes (t) of carbon allowances over the near term and implement several program adjustments as part of a draft package aimed at keeping the state on track for its 2030 greenhouse gas (GHG) reduction target. The program is designed to achieve a 40pc cut in statewide emissions from 1990 levels by 2030 and support California's 2045 net-zero goal. However, the costs to comply under the proposed amendments will "cripple the survivability of the state's remaining refineries" and "upend California's fuels market", Chevron president of downstream, midstream and chemicals Andy Walz said in a letter this week to California governor Gavin Newsom (D) and other state officials. The rules will also cause California to increase reliance "on costly and slow-to-arrive foreign imports that are ill suited to respond to supply shocks and carry higher lifecycle emissions", Walz said. Chevron operates two large refineries in California — the 285,000 b/d El Segundo and the 245,000 b/d Richmond facility. Fellow refiner PBF Energy concurred, saying that the proposed amendments as written would make costs "skyrocket" and "drive in-state refining capacity to zero", according to a 25 February filing to CARB, which is holding a public comment period for the proposed changes through 9 March. PBF's costs to comply with the proposed regulations would increase to $308mn annually by 2035, a 400pc jump from 2024, while competing importers are exempt from paying cap-and-invest fees, the company said. PBF operates two California plants, the 156,400 b/d Martinez refinery and the 160,000 b/d Torrance refinery. Under the current system, in-state refineries receive free allowances as part of the Emissions Intensive, Trade Exposed (EITE) sector, while importers buy allowances at auction. CARB is mulling replacing its fossil fuel-based emissions product benchmark with one that rewards facilities that shift to biofuels. Starting in 2031, refineries would receive free allowances for producing fuels such as gasoline blendstocks, allowing facilities that have shifted to biofuels to qualify for free allowances. CARB uses these product-based benchmarks to allocate free allowances to industry based on quantity of emissions for each unit produced, rewarding reductions in emissions intensity. Under the proposed rules, importers could still buy allowances at auction. The planned 118mn t removal represents the minimum reduction of options CARB had considered to address the program's accumulated allowance surplus since its launch. CARB proposed additional reductions to the 2030-45 allowance budget to support the long-term emissions target. But the shutdown of Phillips 66's Los Angeles refining complex last year and Valero's ongoing idling of its 145,000 b/d Benicia refinery will leave more allowances available for purchase at state auctions. The closures, which will shut about 17pc of the state's refining capacity, have also raised supply concerns in California's sometimes volatile fuels market and the impact on neighboring states. The Western States Petroleum Association (WSPA), a lobbying group that often represents the industry in state negotiations, said that complying with the proposed cap-and-invest program will cost California refiners an estimated $1.5bn a year by 2035 compared with $357mn a year in 2026, citing an analysis by Capitol Matrix Consulting. "For an industry already operating under uniquely high costs and narrow margins in California, this additional burden is not manageable, it is existential," WSPA said in a 25 February letter to Newsom and other state officials. 'Familiar arguments' Environmental groups counter that the industry is repeating familiar arguments. "They are running the same playbook we have seen before, which is [where] they say, ‘oh my gosh if you do x, y or z then gas prices are going to go through the roof'… and the sky has not fallen yet," Environmental Defense Fund (EDF) California state director Katelyn Roedner Sutter said in an interview with Argus . The future of refining in the state depends on global market shifts as much as state climate policy, she added. California lawmakers are unlikely to re-open the cap-and-invest statute during the current legislative session, but they are pressing CARB on the affordability impacts of the proposed amendments on electricity and transportation fuels. CARB plans to bring a final proposal for its board to review as early as 28 May, with implementation by 1 September. By Eunice Bridges and Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US says it can not pay tariff refunds quickly

06/03/26

US says it can not pay tariff refunds quickly

Washington, 6 March (Argus) — President Donald Trump's administration said it is unable to comply with a recent court order to begin refunding $166bn in tariffs the US Supreme Court has struck down, and that setting up systems to handle mass refund requests will probably take 45 days. The administration is making "all possible efforts" to install automated systems that can issue refunds to more than 330,000 importers that made 53mn customs entries under the International Emergency Economic Powers Act (IEEPA), a top customs official said. But making immediate changes is not possible because doing so could clash with other deadlines and divert staff away from "imminent threats" to national security and the economy, the Customs and Border Protection (CBP) official said. "CBP has never been ordered to, nor has it attempted to, process a volume of refunds anywhere near the volume of total entries and Entry Summary lines on which IEEPA duties have been deposited," CBP trade programs executive director Brandon Lord wrote in a declaration filed in federal court on Friday. The administration's stated difficulty in paying the ordered refunds could offer legal ammunition to states that have filed a lawsuit to block new 10pc tariffs that Trump imposed last month. The administration successfully avoided a court-ordered freeze on its IEEPA tariffs last year by pledging to pay refunds if they were struck down. But the expectation of weeks of delay in paying out refunds could test the patience of federal judges hearing the latest tariff lawsuit. The US Court of International Trade on 4 March ordered CBP to strip out IEEPA tariffs owed on "any and all" imported goods, with a focus on taking out the tariffs during "liquidation" — the calculation of final duties — on all customs entries. The Trump administration earlier this week already conceded it will pay interest on refunds it is require to make, which economists expect will result in billions of dollars of additional payments paid back to importers. Lord, in his declaration, said CBP is "not able" to comply with court order earlier this because its systems were already set up to automatically liquidate more than 300,000 custom entries every week. Halting liquidation and offering refunds would require CBP staff to spend 4mn hours to manually input refunds, he said, whereas the automated system still being developed would "streamline and consolidate refunds and interest payments" for the affected 330,000 importers. Under the planned automated system, refunds would not occur automatically. Lord said importers would have to file a "declaration" with a list of entries on which IEEPA duties were paid, after which CBP would validate the declaration "as soon as practicable". The system would then finalize the entries and pay out refunds electronically. But Lord identified a potential obstacle, which is that just 21,000 of the 330,000 importers paying IEEPA tariffs have taken steps to receive refunds electronically. Federal judge Richard Eaton, who is hearing all tariff refund cases in the US Court of International Trade, has yet to respond to CBP's declaration. The court could order additional requirements to handle the tariff refunds. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Carbon - In focus: Biomethane ACCU pathway uncertain

06/03/26

Carbon - In focus: Biomethane ACCU pathway uncertain

London, 6 March (Argus) — Australia will explore expanding the carbon-crediting pathway for its nascent biomethane industry, but a potential preference for renewable gas certificates over Australian Carbon Credit Units (ACCUs) may curb that development, stakeholders said. The Australian government last month prioritised the creation of a new Alternative Waste Treatment ACCU method that could boost emissions abatement by offering a potentially longer crediting period and by adding biomethane generation as an eligible activity. This could potentially promote a higher uptake of ACCU projects for biomethane facilities in Australia, which would help developers and investors to finance new plants, as well as increase the future supply of carbon credits that companies use in the compliance market's safeguard mechanism, or for voluntary purposes. But overlaps between ACCUs and new certification options — the renewable gas guarantees of origin (RGGOs) under GreenPower's Renewable Gas Certification and the future product guarantee of origin (PGO) certificates under the Clean Energy Regulator (CER's) managed guarantee of origin GO scheme — mean that the carbon-crediting pathway for biomethane may be limited, according to industry participants. Limited ACCU uptake Participation in ACCU projects has been very limited under existing or expired methods, although this is mostly because there are still very few biomethane projects in Australia. There are just two active ACCU methods that support biomethane facilities: the Animal Effluent method , which focuses on reducing methane emissions from animal waste by capturing and treating effluent, and the Reducing Methane Emissions from Landfill Gas method, which targets methane reduction from landfill sites by capturing and destroying landfill gas, converting it to electricity, or upgrading it into biomethane. Of nearly 30 projects currently registered under the Animal Effluent method, only two involve biomethane facilities, according to the CER. And there are no projects registered under the Reducing Methane Emissions from Landfill Gas method, which was only made late last year . There is also one project involving biomethane production registered under the Domestic, Commercial and Industrial Wastewater method, which expired on 31 March 2025. None of these three biomethane projects have received ACCUs yet, nor projects registered by bioenergy developer Delorean that do not specifically mention biomethane with the CER but are expected to generate that product ( see table ). "Since the making of the biomethane methodologies in 2022, the CER has received enquiries about the potential eligibility of biomethane projects under the ACCU Scheme," a spokesperson told Argus . "There has not been any particular trend in these enquiries and the CER does not produce forecasts on biomethane production for future ACCU project generation." LMS Energy joins Delorean and other developers The most recent of these projects — the Wasleys biomethane project in South Australia (SA) — was registered with the CER in December by Australia's largest landfill gas operator, LMS Energy, in partnership with Australian pork producer SunPork. The A$24.1mn ($16.95mn) project, which could become Australia's first commercial-scale agricultural renewable natural gas facility, will receive A$10mn of funding from the Australian Renewable Energy Agency (Arena). LMS plans to use anaerobic digestion to collect biogas generated from animal effluent and upgrade it to biomethane for use as a natural gas substitute. This would reduce SunPork's scope 1 greenhouse gas (GHG) emissions. Currently, biogas released from uncovered piggery effluent ponds is the largest source of emissions for the pork industry. If successful, the project could overcome regulatory barriers by establishing and demonstrating clear pathways for the recognition of agricultural biomethane in carbon crediting and renewable gas certification schemes, according to Arena. LMS did not reply to questions about the timeline of the project, plans for future biomethane facilities or challenges around risks for double-counting or overlap for ACCUs and certificates like RGGOs and PGOs. Delorean, which last year signed an agreement with utility Origin Energy to sell biomethane and the corresponding RGGOs from its SA1 Salisbury bioenergy facility in SA, did not reply either to questions about the expected interplay between ACCUs and RGGOs from its projects. The company has said its projects would have potential for several products and revenue sources, including biomethane, RGGOs, ACCUs and biogenic liquid carbon dioxide (LCO2). Biomethane from SA1 Salisbury will be delivered via the gas network following a connection agreement last year with gas network Australian Gas Networks (AGNL), part of Australian Gas Infrastructure (AGIG). AGIG did not reply to questions either. RGGOs and ACCUs to be stapled and retired together Under rules set by GreenPower, ACCUs created from projects under the Animal Effluent, Reducing Methane Emissions from Landfill Gas, or any other methods, would need to be stapled with RGGOs in case the latter are also created in respect of the same activity. The ACCUs and RGGOs would then need to be retired together to the same entity, to avoid double counting, GreenPower's renewable fuels team lead Brad Bailey told Argus . There is just one facility currently accredited to create RGGOs — gas pipeline and power distribution firm Jemena's Malabar plant in Sydney in New South Wales (NSW). RGGOs have been already issued to the 95 TJ/yr (2.5mn m³/yr) facility, but not yet retired. Two biogas or biomethane projects are in the process of obtaining accreditation, and more than 30 projects have expressed interest in participating, Bailey said. While it would be up to the end customer to surrender either the ACCUs or RGGOs stapled together, Jemena anticipates the use of RGGOs for market trading as these certificates can be used by consumers for emission reduction rather than offsets, renewable gas general manager Suzie Jakobovits said. "Jemena supports additional ACCU methods that recognise biomethane as low-emission fuel. But while ACCU pathways are valuable, more recent policy advancements have provided a more valuable incentive for biomethane production," she said, noting the renewable gas certification schemes and their allowed use from July to reduce scope 1 emissions under the National Greenhouse and Energy Reporting (NGER) scheme. Jemena has not been developing any further biomethane projects of its own. It has instead signed initial contracts with project developers including Optimal Renewable Gas (ORG), Valorify, Sojitz and Gwydir Circular Economy to potentially connect their planned biomethane facilities into its gas network. "It will be up to the biomethane producer to determine whether to register for ACCUs and/or renewable gas certificates," Jakobovits said. More support needed For ORG managing director Mike Davis, the new Alternative Waste Treatment ACCU method could be potentially more flexible to transfer emission benefits from the current pathways to anaerobic digestion plants. But the company sees RGGOs as "more valuable than ACCUs" as they are recognised as a scope 1 emission reduction pathway rather than an offset, he said. Other biomethane developers like Valorify, as well as major waste management firms such as EDL Energy, Cleanaway and Veolia — which are among Australia's largest landfill gas ACCU project operators — did not respond to requests for comment. Waste management firm LGI said it is not currently involved in biomethane projects. Australian gas pipeline operator APA declined to comment. The firm launched in 2024 a public round of expression of interest for potential biomethane supply projects, but decided not to proceed because of a combination of technical and commercial factors unique to the project. Beyond the RGGO, PGO and ACCU pathways and the NGER change last year, the biomethane industry will need further government policy and financial support, Jakobovits said. She highlighted the NSW government's A$170mn Renewable Fuel Strategy launched in November to support renewable fuel and biomethane production in the state. "This support is only available in NSW. Other states or federal government support is required to stimulate biomethane production in other states," she said, suggesting policies like the development of a national renewable gas policy approach and the recognition of biomethane as a priority industry under the Future Made in Australia and as a priority investment area within Arena. ACCU projects supporting biomethane facilities Project Developer Method Crediting period ACCUs issued Wasleys Biomethane Project LMS Energy Animal effluent 11/12/2025-10/12/2037 0 UAG Bio Nutrients Facility UAG Bio Nutrients Animal effluent 15/05/2024-14/05/2036 0 Ryan Group Anaerobic Biodigester Ryan Meat Company Domestic, Commercial and Industrial Wastewater 25/08/2026-24/08/2038 0 Salisbury Bioenergy Project Delorean Alternative Waste Treatment 2015 25/03/2025-24/03/2032 0 Stanhope Bioenergy Project Delorean Alternative Waste Treatment 2015 08/03/2025-07/03/2032 0 Stanhope Bioenergy Project Delorean Animal effluent 20/09/2025-19/09/2037 0 source - CER Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Q&A: Italian decree causing uncertainty — Alpiq

05/03/26

Q&A: Italian decree causing uncertainty — Alpiq

London, 5 March (Argus) — The latest decree aiming to tackle high power prices in Italy has caused uncertainty and concern among market participants, energy supplier Alpiq Italia's vice-president, Massimiliano Bignami, told Argus on the sidelines of the Key Energy Expo in Rimini on Thursday. Edited highlights of the interview follow: Italy has approved measures worth over €3bn to cut energy bills in a package that has shaken the power market. What is your reaction? It worries us because it will certainly have an impact on the Italian market, but also cross-border energy flows from Switzerland to Italy and vice versa. These are issues that go beyond Italy's borders. We are particularly concerned about the uncertainty it is generating, because the legislator has decided to take actions, some of which are subject to EU approval. At the moment, we do not really know how things will end, even though the market has already shown some movement, and therefore there are opposing dynamics. We will do our best to limit the impact on our customers. Could you elaborate on Italy–Switzerland flows? At the moment, Italy has a slightly higher power price than Switzerland, so Switzerland typically exports to Italy. But if the differential were reversed, these flows would change and the way we manage and approach our portfolio would change. Regarding the uncertainty, the legislator would not want this benefit to spill over beyond our borders, otherwise it would mean subsidising foreign countries. Rome plans to strip out EU ETS costs by offering gas-fired plants compensation for emissions costs they would otherwise pass on to final users in bills. Market participants have criticised the measure, even highlighting the potential for market manipulation. Do you share that view? It's a complicated issue because the fact Italy has slightly higher prices on average than the rest of Europe is pretty much a given... We have a price disadvantage, but also many regulatory opportunities to mitigate this situation. I believe the government has tried to reduce prices by, in some way, throwing the ball to the other side for now, particularly to Brussels. I don't think this amounts to market manipulation, as long as the rules remain the rules. I do have some doubts that the decree, as it stands, will be approved by Brussels — unless it triggers a domino effect with other countries revising the ETS mechanism. Indeed, the mechanism was introduced when gas-fired generation was more abundant... Today, fossil fuel-based generation is significantly lower because of the expansion of renewables, so perhaps with such a heavy cost burden, it might make sense to revisit it practically without losing sight of the ultimate objective. The decree also proposes a controversial mechanism designed to eradicate Italian gas hub PSV's long-standing premium to the TTF benchmark. What are your thoughts on this? I think it is, in some respects, a reasonable measure. However, I believe anything that tends toward over-regulating and in some way constraining the market goes against the concept of a free market that we are trying to pursue. So we must be careful that these measures, although they have a noble and positive intent, do not end up creating a market that is no longer free. Gas makes up the main share of Italy's generation mix, but how do you think this situation will evolve? I believe thermal generation is essential for system security and adequacy, and I think this is not just my opinion but also a fact confirmed, for example, by Terna introducing mechanisms like the capacity market to ensure system adequacy. I believe a long-term core of very efficient and flexible plants will remain, with a likely trend toward being dispatched but producing less and less over the next 10–15 years. I see a phase-out that will not be particularly fast. Energy minister Gilberto Pichetto Fratin is working towards a new legal framework to resume nuclear output using small third and fourth-generation reactors by the end of this year. How does nuclear fit into the mix? I think it was a mistake for our country to give up this form of energy 40 years ago. There was a referendum, and today we are paying the price of not having this type of generation, which has probably led to an unbalanced mix and higher prices. This is a structural weakness of our portfolio. I believe it is an important and essential technology that has a future, especially with the third and fourth-generation reactors. But it has very long timelines — particularly in our country, which made a different choice in the past. It will require significant effort and a cultural shift to reach acceptance of this technology. By Ilenia Reale Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Big Tech to sign pledge to pay for AI buildout

04/03/26

Big Tech to sign pledge to pay for AI buildout

Houston, 4 March (Argus) — Major tech companies gathered at the White House with President Donald Trump Wednesday to sign a pledge intended to shield consumers from higher electricity costs related to the development of power-hungry data centers. Google, Microsoft, Meta, Oracle, xAI, OpenAI and Amazon were set to sign the "Ratepower Protection Pledge," agreeing to "build, bring, or buy" new generation resources and to cover all transmission and distribution upgrades associated with their data center projects, the White House said Wednesday. The pledge comes as public concern mounts over data center power consumption and its affect on household electricity bills. US electricity prices have risen in multiple states as data center construction has surged to support artificial intelligence (AI), posing a political problem for candidates heading into the November midterm elections. "President Trump's ratepayer protection pledge will deliver more affordable, reliable, and secure energy for the American people and help stop the rising electricity prices that started during the previous administration," US Secretary of Energy Chris Wright said ahead of the meeting. The nation's largest utilities are spending hundreds of billions of dollars to add generation and upgrade existing infrastructure to meet what multiple companies have described as unprecedented demand growth. Data center development plans have led to double-digit growth in electricity bills in some markets in the past two years, and government officials and company executives in the technology and energy sectors are seeking ways to ensure households do not bear the brunt of the cost. "Trump's desire to manage energy costs for households via the Ratepayer Protection Plan will be challenging to effect as costs are layered throughout the energy system," Ben Heininger, US data center energy lead at Baringa, said in an email. New generation capacity may add supply to the system but may still be constrained by transmission bottlenecks. Tech companies would need to behave like vertically integrated utilities, which undertake such projects in tandem to truly shield consumers from rate hikes, he said. Runaway Capacity Prices Data center loads are responsible for an additional $23bn, or 40pc of total costs, in the last three capacity auctions at PJM, said Joseph Bowring, president of Monitoring Analytics, the independent external market monitor for PJM Interconnection. Prices skyrocketed into record-high triple digits as larger reserve requirements driven by AI needs coincided with coal-fired and nuclear plant retirements. These prices are locked in until 2028, making it virtually impossible to lower consumer prices in the near term, Bowring said. PJM's territory of 13 states includes the largest cluster of data centers in the world in northern Virginia. "The White House ... recognizes correctly that data centers have to be served by new generation because otherwise you're cannibalizing the old generation, making it everyone else's problem," Bowring said on a webcast hosted by the Brookings Institution. The White House did not specify how the pledge signed by tech companies will be implemented and tracked. It was unclear if the commitment extends to their subsidiaries and special-purpose vehicles, which often sign contracts with utilities, the environmental advocate Earthjustice said. "We urgently need strong policies and protections to ensure that data centers pay their way, disclose and mitigate their impacts, and are powered by clean energy," Earthjustice vice president of litigation for climate and energy Jill Trauber said in a statement. Data center demand appears to be extending fossil-fuel dependency in the interim. Some utilities have delayed coal-fired plant retirements and are investing in natural gas generation as tech companies express concerns about the intermittency of renewable power sources. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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South Korea joins global methane pledge

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Calif. refiners warn emission rules risk closures

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US says it can not pay tariff refunds quickly

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Q&A: Italian decree causing uncertainty — Alpiq

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Big Tech to sign pledge to pay for AI buildout

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