Australia stays on track for 40pc GHG fall by 2030

Spanish Market: Electricity, Emissions
01/12/22

Australia is on track to reduce greenhouse gas (GHG) emissions by 40pc by 2030 from 2005 levels, or just short of its target of a 43pc reduction over the same period, based on current emissions reduction polices, according to the Australian government's inaugural Annual Climate Change Statement.

The 2022 Emissions Projection report from the Department of Climate Change, Energy, the Environment and Water (DCCEEW), released along with the annual statement, shows the actions and policies put Australia on track for a 40pc emissions reduction by 2030, said Australian energy and climate change minister Chris Bowen.

These projections do not yet include the A$20bn ($13.6bn) Powering Australia measures, such as some elements of the Powering the Regions Fund and the National Electric Vehicle Strategy, nor additional commitments such as the National Energy Performance Strategy, Bowen said. Powering Australia is to fund new transmission links from planned new renewable energy zones to the existing power grid.

"Policies we received a mandate for, and are working on implementing including, will lift our result to at least 43pc," Bowen said.

Australia under the baseline scenario, which is a business as usual approach, is projected to achieve a 32pc reduction in GHG emissions from 2005 levels in 2030. The additional measures scenario, which incorporates some but not all measures that are now being implemented under the Powering Australia plan, is projected to achieve a 40pc reduction on 2005 levels in 2030, according to the Emissions Projection report.

Australia's 43pc reduction target requires GHG emissions needing to fall to 354mn t of carbon dioxide equivalent (CO2e) by the end of the decade, although is currently tracking for a 40pc fall to 371mn t over the same period. This is still an increase over Australia's 2021 Emissions Projection report that projected emissions to fall to 439mn t in 2030.

The latest quarterly GHG emissions report showed emissions for the 12 months to June 2022 estimated to be 486.9mn t CO2e, or up 0.1pc on the previous year, according to the quarterly update of Australia's national GHG inventory June 2022 report. This means that Australia's emissions will have to fall by a further 27.2pc to reach its 2030 target.

The latest inventory report showed further falls in emissions from Australia's electricity sector as more power is generated from renewable sources. Electricity GHG emissions dropped by 3.7pc or 6.1mn t of CO2e to 157.8mn t of CO2e in the 12 months to 30 June. The 2022 Emissions Projection report projects electricity emissions to drop to 79mn t by the end of the decade.

Renewable energy generated around 34pc of electricity in east Australia, which accounts for more than 80pc of national electricity consumption. Coal-fired plants accounted for 59pc of power generation over the same period and gas accounted for the remainder.

Fugitive emissions, largely from coal and gas extraction, rose by 3.4pc or 1.7mn t of CO2e to 50.3mn t in the year to 30 June, the inventory report showed.

By Kevin Morrison

Australia GHG emissions inventory			unit (mn t of CO2e)
	12 months to Jun '22	12 months to Jun '21	% ±

Electricity	157.8	163.9	-3.7
Stationary energy, excluding electricity	102.6	99.5	3.1
Transport	90.7	91.6	-1.0
Fugitive emissions	50.3	48.6	3.4
Industrial processes	32.4	32.3	0.2
Agriculture	79.6	77.1	3.3
Waste	13.0	13.0	0.0
Land use, land use change and forestry	-39.5	-39.4	0.0
Total	486.9	486.6	0.1
GHG emissions, excluding LULUCF	526.4	526.0	5.3
Source: DCCEEW

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24/06/25

Cheaper power key to reach UK’s climate targets

Edinburgh, 24 June (Argus) — The UK's climate plan credibility has improved slightly but no progress has been made to make electricity cheaper, which is key to hit the country's emissions targets, independent advisory body Climate Change Committee (CCC) said in its progress report. The report assesses the UK's progress towards its net zero goals under the current government, which took power in July 2024. The CCC found the UK's 2050 target remains reachable but climate action needs to accelerate, even though policies to cut greenhouse gas emissions have improved. Only half of the 16 key indicators assessed by the CCC, with a relevant benchmark or target, are on track — including offshore and onshore wind operational capacity, sustainable aviation fuel, electric vehicle (EV) charging points and distances travelled by car. EV car sales, heat pump installations, woodland creation and peatland restoration are "slightly off track", while the ratio of electricity to gas prices for households and industries is "significantly off track", the CCC said. The committee noted no progress has been made on actions to lower the cost of power. The government is planning to consult on this "in due course", but CCC urged for actions and timelines. The CCC has identified "ten priority actions" for the year ahead, with cutting the cost of electricity for households and businesses again at the top. Cheaper power will support industrial electrification and "speed up the uptake of clean electric technologies, such as heat pumps and electric vehicles," the CCC said. The transition to renewables will eventually reduce the country's reliance on volatile wholesale gas prices, which are the main driver of electricity prices, it said. "But the government can take immediate action to accelerate this by moving policy costs associated with past schemes, and those that are not directly related to the cost of electricity generation, off electricity bills," the CCC said. Removing electricity policy costs — levied on the unit price of electricity at 20 times the rate of gas — would reduce annual electricity bills by £190 ($258) for a typical household with a gas boiler and by £490 for a typical household with a heat pump, CCC found. "This would bring UK prices into the range of other countries who are ahead on heat pump roll-out," it said. The CCC report assessed policy development from July 2024 to 23 May 2025, so does not take into account policies announced in the recent spending review nor the British Industrial Competitiveness Scheme intended to reduce electricity costs by up to £40/MWh for more than 7,000 electricity-intensive businesses. UK emissions reached 413.7mn t of CO2 equivalent (CO2e) in 2024, including its share of international aviation and shipping, down by 50pc from 1990 and by 2.5pc from 2023, according to the CCC. The year-on-year reductions come mainly from the electricity supply — declining gas generation — and the industry sector. The government will increasingly need to focus on transport, building, agriculture and aviation to reach its emission reduction targets, the CCC said. The report points to encouraging trends in EVs and in heat pump installations, which grew by 56pc on the year, and in woodland creations, but it reiterated action on these fronts must accelerate. Although much of the progress stems from policies set by previous government, the CCC said "bold policies" introduced this year are promising, such as removing planning barriers on renewable deployment and the reinstatement of the 2030 phase-out date for gasoline and diesel vehicles. The market share of new EVs increased on the year in 2024, by nearly 20pc. But CCC noted aviation sector emissions are increasing. The share of sustainable aviation fuel increased to 2.1pc last year from 0.7pc in 2023, but a lot more is required to reach the 10pc SAF mandate by 2030. By Caroline Varin Distribution of past emissions reductions and future emissions savings by sector.pdf Distribution of past emissions reductions and future emissions savings by sector Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Netherlands publishes RED III biofuels draft

24/06/25

Netherlands publishes RED III biofuels draft

London, 24 June (Argus) — The Dutch government's updated draft legislation to transpose the EU's revised Renewable Energy Directive (RED III) notably proposes abolishing double-counting renewable energy contributions from Annex IX feedstocks. The draft introduces a greenhouse gas (GHG) emission reduction mandate for land, inland shipping and maritime shipping, but excludes aviation — which was included in a previous draft . The RED III mandate will take effect in 2026. Obligated parties have to fulfil the mandate by surrendering a sufficient amount of so-called emission reduction units (EREs) in each sector. The mandate's flexible credit allowance allows EREs generated in the land sector to be used to partly meet emission reduction obligations in inland and maritime shipping ( see table ), but EREs from inland and maritime shipping cannot be used by land sector suppliers to fulfil their compliance requirements. Fuel suppliers with overall consumption of more than 500,000 l/yr will need to incorporate a 14.4pc share of renewable fuels in their annual deliveries in 2026. This increases linearly, to reach 27.1pc in 2030. The amount of crop-based biofuels in the land sector will be limited to 1.4pc of the overall energy content of total consumption until 2030, and will not be accepted towards targets in maritime and inland shipping and aviation. The amount of Annex IX Part B biofuels — such as used cooking oil (UCO) and animal fats categories 1 and 2 — that can be counted towards the mandate will be limited to 4.29pc in the land sector and 11.07pc in inland shipping. Obligated parties will be unable to claim EREs from Annex IX Part B fuels used in maritime shipping. The draft also introduces a minimum share of emission reductions that have to be achieved by Annex IX Part A and renewable fuels of non-biological origin (RFNBO), for all sectors. RED III mandates that 5.5pc of all fuels supplied must be advanced biofuels, including at least 1pc RFNBOs by 2030. The Netherlands' draft decouples these targets, to reduce investment uncertainty ( see table ). Refineries that use renewable hydrogen in their production process can claim refinery reduction units — or RAREs — which can be used by a supplier to meet an RFNBO sub-target in various sectors. Correction factor delay The ministry will delay its plans to apply a "correction factor" of 0.4 to its "refinery route" stimulus for hydrogen demand, in order to ensure the measure does not undermine direct use of hydrogen in transport. The correction factor means the value of emissions reductions credits generated through the use of renewable hydrogen for transport fuel production would be limited to a certain percentage of those generated through direct use of renewable hydrogen or derivatives in transport. The government leaves the option open to impose a correction factor from 2030. Although the EU Fuel Quality Directive increases the maximum share of bio-based components to 10pc in diesel, the Dutch government said fuel suppliers must continue to offer B7 — diesel with up to 7pc biodiesel — as a protection grade, because of the large number of cars incompatible with B10. Companies will be able to carry forward any excess EREs to the next compliance year. Companies with an annual obligation can carry forward up to 10pc of the total amount of EREs needed to fulfil their obligation in a year, with registering companies allowed to carry forward 4pc. Dutch renewable fuel tickets (HBEs) carried into 2026 will be converted into EREs on 1 April 2026, the government said. By Evelina Lungu and Anna Prokhorova Overview of future Dutch obligations pc CO2 2026 2027 2028 2029 2030 Land (Road) Sector-Specific Obligation 14.4 16.4 22.8 24.8 27.1 Flexible Credit Allowance 0.0 0.0 0.0 0.0 0.0 Total Obligation 14.4 16.4 22.8 24.8 27.1 Annex 9A Sub-Obligation 3.1 4.5 5.9 7.3 8.8 RFNBO Sub-Obligation 0.1 0.1 0.4 0.8 1.1 Conventional Biofuel Limit 1.2 1.2 1.2 1.2 1.2 Annex 9B Limit 4.3 4.3 4.3 4.3 4.3 Maritime Sector-Specific Obligation 3 3 4 5 6 Flexible Credit Allowance 1 2 2 2 3 Total Obligation 4 5 6 7 8 Annex 9A Sub-Obligation - - - - - RFNBO Sub-Obligation 0 0 0 0 0 Conventional Biofuel Limit 0 0 0 0 0 Annex 9B Limit 0 0 0 0 0 Inland Waterways Sector-Specific Obligation 3 4 6 8 12 Flexible Credit Allowance 1 1 2 2 3 Total Obligation 4 5 8 10 15 Annex 9A Sub-Obligation - - - - - RFNBO Sub-Obligation 0 0 0 0 0 Conventional Biofuel Limit 0 0 0 0 0 Annex 9B Limit 11 11 11 11 11 The Ministry of Infrastructure and Water Management *RFNBO: Renewable fuel of non-biological origin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Erex to start Vietnam biomass co-firing tests in August

24/06/25

Erex to start Vietnam biomass co-firing tests in August

Tokyo, 24 June (Argus) — Japanese renewable energy developer Erex plans to start coal and biomass co-firing test runs at thermal power plants in Vietnam from August. Co-firing test runs will start at the 110MW Na Duong plant in August and at the 115MW Cao Ngan plant in September, Erex said on 20 June. Both plants are owned and operated by Vietnam National Coal and Mineral Industries (Vinacomin). The Japanese company announced in April that it was planning co-firing test runs at the two plants , but had not previously disclosed when the tests would start. The trial operations are expected to last for several months and burn locally produced wood chips, starting from 5pc co-firing and gradually increasing to 20pc. The two companies will renovate the plants in 2026-27 after the trial operations and start commercial co-firing operations around 2027-28, Erex said. Erex said it also plans to conduct co-firing test runs at Vinacomin's 670MW Cam Pha plant in 2027-28 and start commercial operations around 2029-30. The company aims to carry out co-firing at six Vinacomin plants with a combined capacity of 1,585MW, including Na Duong, Cao Ngan, and Cam Pha. The co-firing projects are part of Vietnam's net zero strategy. Erex is eyeing carbon credits from the plants once commercial co-firing begins. The company aims to sell some of the carbon credits in Japan and is currently negotiating with Vietnamese government on this. Erex is expanding its renewable energy business in Vietnam and southeast Asia. In addition to co-firing projects, the company aims to operate a total of 19 biomass-fired power plants in Vietnam. The first of these, the 20MW Hau Giang plant, started commercial operations in April. Erex also plans to build up to five biomass-fired power plants in Cambodia. The company projects that profits from Vietnam and Cambodia will account for more than half of its overall earnings by around 2030, from nearly negligible levels in 2024. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ontario weighs domestic biomass-based diesel quota

23/06/25

Ontario weighs domestic biomass-based diesel quota

New York, 23 June (Argus) — Ontario is considering requiring that domestically produced renewable fuels make up 3pc of the province's diesel pool, an effort to help biodiesel producers struggling to adapt to policy changes in the US. Ontario late last week requested input on a proposal to supplement existing provincial biofuel blend requirements with a new mandate for Canadian production, similar to a domestic content rule that took force in British Columbia this year. Ontario already requires that renewables like biodiesel and renewable diesel make up 4pc of diesel consumption each year, but this proposal would require that three-fourths of that mandated volume come from biofuels produced in Canada. The Ontario Ministry of the Environment, Conservation and Parks says the proposal is in response to a new clean fuel tax credit that took effect in the US this year, which can only be claimed by US producers. A US Department of Agriculture report late last year said that there were six remaining operational biodiesel plants in Canada and that the industry has historically sent almost all its fuel into the US, which up until this year treated foreign biodiesel as eligible for a federal tax credit. At the same time, US biofuels have increasingly entered Canada to meet demand from low-carbon fuel standards federally and in British Columbia. In those programs, higher-carbon fuels that exceed annual carbon intensity limits incur deficits that suppliers must offset with credits generated from approved lower-carbon alternatives. The Canadian biofuel industry has pushed officials to respond. British Columbia as a result began requiring this year that renewables make up a minimum 8pc of diesel fuels supplied in the province, up from 4pc, and that this mandated volume must come from Canadian producers starting in April. British Columbia-based renewable diesel producer Tidewater Renewables has also unsuccessfully pushed Canada to impose duties on US product. The Ontario environment ministry said the domestic mandate, if finalized, would be a "temporary, time-limited measure" that would last as long as US subsidies "threaten Ontario's biodiesel industry." The new US tax credit that excludes foreign refiners is currently set to lapse after 2027, but Republican lawmakers have floated using a massive budget bill they want to pass in the coming weeks to extend the incentive through 2031. While full regulatory text is not available, as is typical for this early stage of the Ontario rulemaking process, it appears the proposal would otherwise keep intact the general structure of the province's biofuel mandate. The program offers more credit to lower-carbon fuels, which led to a slightly lower than 4pc biofuel blend rate for the diesel pool in 2023, according to a report from trade group Advanced Biofuels Canada. The domestic content proposal would also not affect a separate mandate that biofuels make up increasing amounts of the gasoline pool through 2030. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK set to boost clean energy investments by £30bn/yr

23/06/25

UK set to boost clean energy investments by £30bn/yr

London, 23 June (Argus) — The UK government plans to increase its clean energy investment by more than £30bn/yr over the next 10 years as part of its broader industrial strategy, it announced today. The new Clean Energy Industries Sector Plan sets out a framework to boost the UK' economy to 2035 by investing in low-carbon technologies. It focuses on key sectors including offshore and onshore wind, nuclear fission and fusion, hydrogen, carbon capture, usage and storage (CCUS) and heat pumps. State-owned entity Great British Energy will invest more than £8.3bn during this parliament, including £1bn for a Clean Energy Supply Chain Fund to support domestic manufacturing. The National Wealth Fund, with £27.8bn in capital, will channel at least £5.8bn into CCUS, hydrogen, ports and green steel projects. And state-owned development bank the British Business Bank will allocate £4bn under its Industrial Strategy Growth Capital package to attract £12bn in private investment for climate technology firms, the government said. The contracts for difference scheme's newly launched "clean industry bonus" has committed £544bn to offshore wind supply chains, potentially leveraging £9bn in private funds, with discussions under way to extend this to hydrogen and onshore wind. The offshore wind sector is projected to contribute £2bn-3bn of gross value added per gigawatt installed and could support 100,000 jobs by 2030, the government said. Nuclear fission initiatives include £300mn for the high-assay low-enriched uranium fuel programme, while the projected 3.2GW Hinkley Point C and 3.2GW Sizewell C nuclear plants aim to pass on 64pc and 70pc, respectively, of the construction value to UK businesses. Fusion energy will receive £2.5bn over five years to advance research, including the Spherical Tokamak for Energy Production prototype by 2040. Hydrogen projects, backed by the hydrogen allocation rounds, are expected to secure £400mn in private investment by 2026, with a regional hydrogen network planned for 2031. CCUS will benefit from £9.4bn to support the East Coast and HyNet clusters, with further funding for the Acorn and Viking clusters under review. And a £13.2bn Warm Homes Plan aims to boost heat pump demand, supported by an investment accelerator competition to expand manufacturing. Starting in 2027, the British Industrial Competitiveness Scheme is intended to reduce electricity costs by up to £40/MWh for more than 7,000 electricity-intensive businesses in manufacturing sectors such as automotive, aerospace and chemicals. Industrials will be exempt from levies used to fund renewables obligation schemes, feed-in tariffs and the capacity market. And the government plans to increase support for about 500 energy-intensive firms such as steel and glass manufacturers by raising their electricity network charge discount from 2026 to 90pc from 60pc. The plan projects significant job growth by 2035, with a forthcoming Clean Energy Workforce Strategy to address skill shortages in engineering and manufacturing, the government said. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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