EU firms face new climate due diligence rules

Spanish Market: Biofuels, Biomass, Emissions
19/03/24

The European Parliament today adopted a law that will oblige larger companies to mitigate their impact on human rights and the environment.

The directive lays down obligations for EU and non-EU firms and parent companies with over 1,000 employees and with a turnover of more than €450mn ($489mn). It will also apply to franchises with a turnover of more than €80mn if at least €22.5mn was generated by royalties.

Companies will also have to draw up a transition plan "making their business model compatible with the global warming limit of 1.5°C under the Paris Agreement".

The directive, which needs to be transposed into EU states' national laws, sets out an obligation to "adopt and put into effect a transition plan for climate change mitigation which aims to ensure, through best efforts, compatibility of the business model and strategy of the company with the transition to a sustainable economy and with the limiting of global warming to 1.5°C".

The new requirements will apply to the companies' "own operations, the operations of their subsidiaries, and the operations carried out by their business partners in companies' chains of activities".

Transition plans must take into account the goal of achieving the EU's 2050 climate neutrality targets, as well as the bloc's intermediate climate goals.

They should tackle, "where relevant", firms' exposure to coal-, oil- and gas-related activities. But the directive defines the goal as an "obligation of means" — taking account of progress firms make — but also the "complexity and evolving nature of climate transitioning". Firms only need to "strive" to achieve their greenhouse gas (GHG) emission reduction targets, even if such plans should include "time-bound targets" for 2030 and in five-year steps up to 2050.

EU foreign ministers this week set out the bloc's approach to "green diplomacy" for 2024. Foreign ministers yesterday confirmed a non-legislative call for additional, new and "innovative" sources of climate finance from a wide variety of sources, including from the fossil fuel sector and other high-emission sectors. This comes as a new finance goal — moving on from the $100bn/yr target that developed countries agreed to deliver to developing countries over 2020-25 — must be decided at the UN Cop 29 climate conference in Baku, Azerbaijan, in November. Ministers also pointed to the work of a taskforce on international taxation that is to be presented at Cop 29.

By Dafydd ab Iago

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13/12/24

US river lock closures may delay product deliveries

Houston, 13 December (Argus) — Mid-Mississippi River and Illinois River locks are expected to undergo long-term closures starting next month, slowing down some commodity deliveries. Three locks around the St Louis, Missouri, and Granite City, Illinois, region will be closed for repairs for up to three months starting 1 January, according to the US Army Corps of Engineers. The Mel Price Main Lock, where the Illinois River flows into the Mississippi River, and Lock 27's main lock, where the Missouri flows into the Mississippi, will also be closed from 1 January through 1 April. The Mel Price Main Lock will commence the final phase of replacement for its upstream lift-gate. Replacement of embedded metals will occur during the closure for Lock 27's main lock. Lock 25 will have a shorter closure date for a sill beam and guide-wall concrete installment from 1 January through 2 March. This is the first lock on the upper Mississippi River, after the Illinois River. These closures are expected to be more of a nuisance than a deterrent for commodity traffic, according to barge carriers. Ice in the river is likely to have melted by mid-March, which may cause barge carriers to wait in the St Louis harbor for the locks to open. Two other lengthy closures are anticipated on the Illinois River beginning on 28 January. The Lockport Lock — the second to last lock on the Illinois River — will be fully closed from 28 January through 25 March for full repairs to the sill and seal of the lock. The prior lock, Brandon Road Lock, will be closed during weekdays over the same time period, but traffic can pass through over the weekend. The lock closures and repairs are expected to delay some barge shipments, specifically to the Great Lakes and Burns Harbor. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Canada sets 2035 emissions reduction goal

13/12/24

Canada sets 2035 emissions reduction goal

London, 13 December (Argus) — Canada has set a new 2035 climate goal, aiming to reduce its greenhouse gas emissions by 45-50pc by 2035, from a 2005 baseline. This builds on its 2030 target of a 40-45pc emissions reduction, again from 2005 levels. Canada's emissions had been in 2015 projected to rise by 9pc by 2030, from 2005 levels, "but we are now successfully bending the curve", the Canadian environment and climate change ministry said. The newly-announced target is in line with a pledge Canada made at the UN Cop 29 climate summit last month. Countries that are party to the Paris climate accord must submit new national climate plans by 10 February 2025, to cover a timeframe up to 2035. Canada, the EU, Mexico, Norway and Switzerland committed at Cop 29 to set out new plans with "steep emissions cuts" that are consistent with the global 1.5°C temperature increase limit sought by the Paris Agreement. The plans are known as nationally determined contributions (NDCs). Canada's NDC is being considered by the cabinet, and the country plans to submit it by the deadline, Canadian climate change ambassador Catherine Stewart told Cop 29 delegates on 21 November. Tackling climate change is "both an environmental imperative and an economic opportunity", she added. The target was informed "by the best available science, Indigenous Knowledge, international climate change commitments, consultations with provinces and territories and expert advice", the ministry said. Canada will also "seek feedback on how to help companies take advantage of the economic opportunities that come with building a clean economy" in the near term, it added. Although the plan is not yet available, the ministry said that it will examine the role of carbon removal technologies for the energy transition. "Canadians are increasingly experiencing record-breaking extreme weather," the ministry noted. The country experienced record wildfires in 2023. Carbon emissions from wildfires this year were second only to the "unprecedented" levels in 2023, EU earth-monitoring service Copernicus found this month. Canada has a legally binding target of net zero emissions by 2050. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Saffaire SAF project gets ISCC certification

13/12/24

Japan’s Saffaire SAF project gets ISCC certification

Tokyo, 13 December (Argus) — Japan's Saffaire Sky Energy has acquired an international sustainable aviation fuel (SAF) certification and is moving ahead with its domestic SAF manufacturing project in Osaka prefecture, it said in a statement. Saffaire Sky Energy is a joint venture established in 2022 between Japanese refiner Cosmo Oil, engineering firm JGC, and biodiesel producer Revo International. Saffaire Sky Energy obtained the International Sustainability and Carbon Certification's (ISCC) Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) in November, it said today, proving the sustainability of its SAF produced at its Sakai plant in Osaka prefecture. The joint venture plans to complete the construction of the plant by the end of 2024 and then begin a trial run at the beginning of 2025. It targets to generate 30,000 kilolitre/yr (517 b/d) of SAF by using domestic used cooking oil (UCO), with the commercial production to start from the beginning of April 2025-March 2026 fiscal year, likely in April or May, JGC said. The firm also acquired the ISCC EU certificate for its SAF and bio-naphtha production, showing that it complies with the EU's Renewable Energy Directive (RED) II. Saffaire Sky Energy has already received several inquiries to buy its SAF from companies, JGC added. It has accelerated its efforts to procure UCO by signing agreements with various organisations within the country, including the city of Sakai in Osaka, city of Kobe in western prefecture Hyogo, leisure and service provider Keikyu and restaurant operator Dining Innovation Investment. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EPA defends 'good neighbor' efficacy

11/12/24

EPA defends 'good neighbor' efficacy

Houston, 11 December (Argus) — The US Environmental Protection Agency (EPA) responded to concerns raised by the US Supreme Court in June by defending the efficacy of the "good neighbor" plan in reducing NOx emissions regardless of the number of participating states. The high court's concerns were over the issue of severability — that is, how effective the good neighbor plan would be in lowering ozone season NOx emissions if only some of the original 23 states participated. In other words, it is the question of whether the emissions limits placed on states as part of the Cross-State Air Pollution Rule (CSAPR) cap-and-trade program under the plan would have changed based on the number of participating states. In a notice published in the Federal Register on Tuesday, EPA rejected the idea that the effectiveness of the good neighbor plan — and as a result, the NOx emissions limits imposed on each state — would wane if the number of participating states changed. Instead, the agency said that its plan is "by design severable by state" because the NOx emissions limits are imposed on individual sources rather than the states themselves. Each participating state's emissions obligations depend on the number of obligated power plants, their emissions and the types of emissions reduction measures they already have in place. As a result, pausing the imposition of tighter NOx limits under the good neighbor plan in certain states does not affect the NOx limits imposed in other participating states, EPA said. In a similar vein, EPA addressed concerns that the larger version of the CSAPR Group 3 seasonal NOx allowance trading program established under the good neighbor plan would become more illiquid if it covered fewer states than planned, which could lead to a smaller supply of allowances and higher prices. Calling those concerns "unjustified", the agency said that states can withdraw their sources from a trading program by submitting their own ozone reduction plans. EPA also cited previous instances from past cross-state ozone programs where the number of participating states has changed, noting that there has been no evidence of allowance shortages. EPA also responded to concerns that it used an inconsistent methodology to determine emissions obligations for each source — including the emissions reduction strategies that could be used and their associated costs. The agency said it used a methodology that was "nearly identical to prior good neighbor rules" and considered NOx reduction technologies that have been in place "for decades throughout the US." The severability issue was raised by the Supreme Court in June, when it paused implementation of the good neighbor plan nationwide. The court majority said that EPA did not provide a sufficient explanation in response to public comments from states that highlighted those concerns — especially because, until the court issued its stay, only 10 states were participating in the good neighbor plan because of lower court stays. But in September, the US Court of Appeals for the DC Circuit allowed EPA to respond to the issue of severability, while it paused related litigation. EPA finalized the "good neighbor" plan last year to help downwind states meet the 2015 federal ozone standards. It imposed more rigorous CSAPR ozone season NOx emissions limits on more than 20 states and called for new NOx limits for industrial sources. Illiquidity has been persistent in the CSAPR market, depressing activity and keeping prices steady for almost a year because of uncertainty surrounding the numerous legal challenges against the plan. The ozone season runs from May-September each year. With plan halted for the time being, EPA has returned to less-stringent seasonal NOx budgets and reshuffled the remaining participating states into the Group 2 and new "expanded" Group 2 markets, leaving the Group 3 market empty. By Ida Balakrishna Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop 29 grids, storage pledge signatories released

11/12/24

Cop 29 grids, storage pledge signatories released

London, 11 December (Argus) — The final list of signatories for pledges on expanding energy storage and grid capacity taken at the UN Cop 29 climate summit, was released today, almost four weeks after the commitment was first finalised, with 58 countries out of almost 200 Cop parties taking part. Signatories commit to a collective goal of increasing electricity storage capacity to 1500GW by 2030, a sixfold increase from 2022. Another pledge is to add or refurbish 25mn km of grid infrastructure by 2030, and recognise the need for an additional 65mn km by 2040. Lack of firm, clean power generators to back up intermittent renewables is a major barrier to increasing renewable penetration, while distributed resources require large investments in power grids to transport electricity to consumers. The list of 58 signatory countries includes the so-called troika of Cop host countries the UAE, Azerbaijan and Brazil. The US and all other G7 member states are present, with the exception of France. Also absent among major economies are China and Russia, while Saudi Arabia spoke in support of the pledges during Cop but does not appear on the list of signatories. In comparison, almost 120 countries had signed a pledge to triple global renewable capacity double global energy efficiency by 2030 during the Cop 28 summit in Dubai last year. The grids and storage pledges were one of the centrepiece announcements made by the Azeri host, following on from the calls made in Dubai on renewable capacity and energy efficiency, but also on transitioning away from fossil fuels in energy systems. But divergences on mitigation — actions to cut greenhouse gas emissions — during the summit this year, meant that the completed pledge, as well as any other specific mentions of fuels and energy transition technologies, were not included in final outcome texts. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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