Indonesia plans 15mn electric vehicles on roads by 2030

  • Spanish Market: Battery materials, Emissions, Metals
  • 24/05/24

The Indonesian government aims to have 2mn four-wheeled electric vehicles (EVs) and 13mn two-wheeled EVs on its roads by 2030, to cut emissions and save energy.

This will bring about energy savings of 29.79mn bl of oil equivalent (boe) and cut exhaust emissions by 7.23mn t of CO2 in 2030, according to special staff to the minister of energy and mineral resources (ESDM) Agus Tjahjana.

Indonesia's transport sector makes up around a third of the country's energy consumption and the 11mn cars on Indonesian roads produce more than 35mn t/yr of CO2, while trucks emit more than 50mn t/yr, according to ESDM secretary general Dadan Kusdiana.

The country's vehicle fleet is likely to grow in coming years because of its economic development, so decarbonising the transport sector is critical to achieving net zero emissions by 2060, said the ESDM. Greater electrification of transport will also allow Indonesia to reduce its fossil fuel imports.

Indonesia is keen to develop the EV battery supply chain from upstream to downstream, in view of its large nickel resources that can support the development of the industry, said Agus. Indonesia currently has nine facilities processing nickel ore into nickel and cobalt sulphate, which is one of the materials used in making EV batteries. Out of these, four are already operational while three are in the construction stage, and the remaining two are still undergoing feasibility studies.

The next step is to promote the manufacture of battery precursors, cathodes, battery cells and batteries, considering that the electric charging and battery recycling industries already exist, said Agus.

But there is still a large price gap between EVs and conventional vehicles, said Dadan. The Indonesian government is hence providing tax incentives and subsidies for electric cars, hybrid cars and electric motorbikes to cover this gap.

"Indonesia has prepared $455mn to subsidise the sale of electric motorbikes," said Dadan, adding that the subsidy covers the sale of 800,000 new electric motorbikes and the conversion of 200,000 combustion engine motorbikes.

The government estimates that 32,000 charging stations will be needed to meet demand by 2030. The total number of charging stations available was 1,566 as of April, said Agus, adding that the government aims to add up to 48,118 charging stations by 2030.

The ESDM has just approved 204 nickel mining work plans for exploration and production. The country produced 175.6mn t of nickel ore output in 2023.


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19/06/24

EU warns of 2030 climate ambition gap

EU warns of 2030 climate ambition gap

Brussels, 19 June (Argus) — The European Commission has warned of an ambition gap on the way to member states achieving the bloc's 2030 renewables and energy efficiency goals, although it noted "some" progress. And European industry still faces comparatively high energy prices, the commission said in its twice-yearly report on countries' economies and finances. Increasing energy efficiency and switching to less costly renewable energy is "essential" to improve the competitiveness of European industry, but most EU states lack solid and sufficiently detailed investment estimations, as well as concrete measures to attract private clean energy finance, the commission said. And countries need to strengthen their carbon sinks from the land use, land-use change and forestry sectors. For Germany, the commission noted that the transport sector has failed to reach annual sector-specific emission targets, including in 2023 , when the sector increased final energy consumption by 6.3pc compared with 2022. EU states also need to strengthen policies to phase out fossil fuel subsidies so as to align with the EU goal of becoming a climate neutral economy, the commission said. For France, the commission estimated a net budgetary cost of emergency energy support measures at 0.9pc of GDP in 2023 and a projected 0.2pc in 2024, falling to 0pc in 2025. And for Italy the commission forecast a net budgetary cost of emergency energy support measures of 1pc of GDP in 2023, reaching 0pc in 2024. For Germany, the estimations are 1.2pc of GDP going to energy support measures in 2023, 0.1pc in 2024, and 0pc in 2025. Another of the commission's key recommendations is to cut the share of Russian imports in total EU gas imports beyond the 15pc seen in 2023, even if the share historically stood at around 40pc. Further efforts are needed from "certain" countries to phase out imports of LNG from Russia, the commission said. EU states have struggled to agree a further round of sanctions against Russia, which would include restricting the reloading of Russian LNG for export outside the EU at terminals in Europe. EU foreign ministers are expected to discuss the matter at a meeting on 24 June. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Buyers, ex-EU mills discussing HRC quota management


19/06/24
19/06/24

Buyers, ex-EU mills discussing HRC quota management

London, 19 June (Argus) — Buyers and exporters to the EU are trying to reduce the risk of purchasing "other countries" hot-rolled coil (HRC) under the 15pc single country quota cap. They are discussing adding duty-sharing clauses to contracts, and commitments from sellers to not exceed their quotas. Mills from the same countries, in the meantime, are deciding whether it would benefit them to allocate the quarterly quota between themselves, in a similar way to South Korean producers, or adopt India's approach, where each seller has tried to maximise its market share. Participants are preparing for a turbulent lead-up to and start of July, and trying to estimate how much duty will be payable on imports mainly from Japan and Vietnam, but also Egypt and Taiwan. Sources expect that October arrivals could also be above quota allocations. In order for purchasing to resume, amid all the uncertainty, buyers are demanding that sellers provide some guarantees that they would not sell excessively in the EU. But feedback from mills has so far been mixed — Vietnamese sellers have said they cannot be held responsible if exports to the EU are higher than the roughly 142,000 t/quarter allowed duty-free, and they were not willing to share duties with buyers, according to participants. Some buyers said they have enquired with Egypt about committing their full quota to them with a firm bid. But controlling Egypt's quota may be more complicated, as often the mill sells on a fob basis to traders, which may in turn sell to Europe or not, market participants said. Some sources said the producer is allocating volumes per buyer depending on the relationship and historical tonnages purchased. Co-operation between Taiwanese mills could be more straightforward, as export certificates are issued by the Taiwanese steel association, according to a seller, in which case volumes can be tracked and monitored more easily. One source said mills will look to sell higher grades and specialties in lieu of commodity HRC to compensate for the reduction in volume to the EU, but maximise the revenue generated. In Japan, mills have been discussing sharing the allocation between themselves, but each seller is reportedly pushing for a larger portion of the quota, even those that have sold very low historical amounts to the EU previously, placing the most active mill under further pressure. There have been suggestions that Japan could try to ramp up its exports of other products to compensate for the loss in HRC — it is often already the lowest-priced supplier of cold-rolled coil (CRC). Buyers and traders are continuing to urge the EU to allow for a grace period in the meantime, so that the material due to be cleared on 1 July is subject to the old regulations. But it appears that the European Commission, which has not yet officially confirmed that the safeguards have been passed as proposed, is not going to take those requests into account. Sources in Brussels suggest that no grace period has been included in the regulation. By Lora Stoyanova Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australian opposition releases nuclear power plan


19/06/24
19/06/24

Australian opposition releases nuclear power plan

Sydney, 19 June (Argus) — Australia's main political opposition today laid out its nuclear energy plan. It aims to bring the first government-owned reactors on line as early as 2035-37 if it is elected next year. The Liberal-National coalition announced seven locations where small modular reactors (SMRs) or large-scale units could be installed, all in sites hosting coal-fired power facilities that have either closed or are scheduled to close, and each of them would have cooling water capacity and transmission infrastructure. A SMR could start generating electricity by 2035, while a larger plant could come on line by 2037, according to the coalition. "The Australian government will own these assets, but form partnerships with experienced nuclear companies to build and operate them," the opposition's leader Peter Dutton, spokesman for climate change and energy Ted O'Brien and National party leader David Littleproud said in a joint statement on 19 June. The opposition claims the federal Labor government's "renewables-only approach" is expensive and is "failing", while its target of reducing greenhouse gas (GHG) emissions by 43pc by 2030 has become "unachievable". The coalition earlier this month said it would not pursue the target, although it declined to set its own 2030 goal for GHG emissions cuts . Federal energy minister Chris Bowen said the coalition's plan lacked detail, costs or modelling, although the opposition has vowed to engage with local communities while site studies, including detailed technical and economic assessments, take place. The proposed sites are the Liddell and Mount Piper plants in New South Wales; the Tarong and Callide stations in Queensland; the Loy Yang facility in Victoria; the Northern Power station in South Australia; and the Muja plant in Western Australia. Nuclear power generation is prohibited in Australia under federal and state laws, and the Labor government last year ruled out legalising it because of its high costs. The Australian federal government estimates that replacing Australia's coal-fired plants with nuclear would cost A$387bn ($257bn) . The Commonwealth Scientific and Industrial Research Organisation (CSIRO) late last year said SMRs would not have "any major role" in emission cuts needed in the electricity sector for the country to reach its net zero GHG emissions target by 2050, as costs would be well above those for onshore wind and solar photovoltaic (PV). Nuclear plants would also take 15 years or more to be deployed because of lengthy periods for certification, planning and construction, CSIRO noted. CSIRO last month included large-scale nuclear costs for the first time in its annual GenCost report, saying costs would be lower than those for SMRs but still way above renewables. Estimated costs between A$136-226/MWh could be reached by 2040, compared with A$171-366/MWh for SMRs and A$144-239/MWh for coal-fired power with carbon capture and storage (CCS), but only if Australia committed to a "continuous nuclear building programme", requiring an initial investment in a higher cost unit. "If a decision to pursue nuclear in Australia were made in 2025, with political support for the required legislative changes, then the first full operation would be no sooner than 2040," CSIRO noted. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

New Zealand's carbon credit auction fails to clear


19/06/24
19/06/24

New Zealand's carbon credit auction fails to clear

Sydney, 19 June (Argus) — New Zealand's second quarterly carbon allowance auction of 2024 failed to clear today, with no bids because prices in the secondary market have been below the regulated auction price floor of NZ$64 ($39). A total of 4,075,700 New Zealand emissions units (NZUs) were left unsold, including 550,700 remaining from the previous auction in March, which sold 2,974,300 units out of the 3,525,000 offered. No company participated in the 19 June auction, which compares with 16 in the previous sale. This was the first time that no bids were received since the auctions started in 2021. All available units will be rolled over to the next auction on 4 September. The secondary market closed at NZ$49 on 18 June, the New Zealand Stock Exchange (NZX) and European Energy Exchange (EEX) — which jointly operate the country's Emissions Trading Scheme (ETS) auction — disclosed on 19 June. Prices fell below NZ$45 and neared one-year lows at the end of May, then recovered to around NZ$55 in early June before falling back again, according to data from trading platforms emsTradepoint, CommTrade and Carbon Match. Policy uncertainty and an increasing oversupply have been affecting NZU prices in recent months. New Zealand's government has until September to decide whether it will follow advice from the country's Climate Change Commission (CCC) to reduce auction volumes to address the oversupply. "If there is no announcement on CCC recommendations before the September auction then that will also likely see no sales," said NZX-listed investment fund Carbon Fund's managing director Paul Harrison. All auctions of 2023 failed, with a total of 23mn unsold units being cancelled as a result. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexico GHG program still in limbo: MexiCO2


18/06/24
18/06/24

Mexico GHG program still in limbo: MexiCO2

Houston, 18 June (Argus) — Despite Mexico's election of a new president with a background in climate science, it is not clear if the new leadership will revive a stalled national emission trading system (ETS), according to one of the country's top carbon market advocates. President-elect Claudia Sheinbaum, the candidate for the ruling Morena party, won the 2 June election to succeed President Andrés Manuel López Obrador. But it is unclear, ahead of her inauguration on 1 October where Sheinbaum will land on wrangling the emissions program and the country's climate commitments and goals, says Eduardo Piquero, chief executive of MexiCO2, a carbon market advocate and a subsidiary of Mexico's stock exchange. "The only hint we've had so far is during some presidential debates, she mentioned she was very keen on climate change and was going to act on Mexico's commitment," Piquero said. Mexico launched a pilot ETS in 2020, with plans to launch a formal national program in 2022. The pilot-phase covered facilities in the energy and industrial sectors that emitted more than 100,000 metric tonnes of CO2 per year, which received allowances at no cost. More than two years after the expected launch of a national market, a formal rollout remains in limbo, primarily because of a lack of action by the government under López Obrador, who Piquero credits with dismantling much of the program along with Mexican environment ministry Semarnat, which oversaw the program. Putting the program and Semarnat back together could take between 2-3 years, Piquero says. Sheinbaum, the former mayor of Mexico City and a climate scientist, has not yet said what her plans are, if any, for a federal emissions trading scheme. A federal ETS will also require new legislation, given the pilot expired after 36 months, and regulators will need to convince major covered participants such as state-owned oil and gas company Pemex and power producer CFE to take part in the official program. The government will also need to reconcile how the ETS will work with the country's state and local programs, such as state carbon taxes in Durango, Guanajuato, San Luis Potosi, Querétaro, Zacatecas, Tamaulipas, and Estado de México, along with others in-development. Currently, Mexico has a goal of a 35pc reduction in greenhouse gas (GHG) emissions by 2030 from a 2000 baseline. Despite a lack of policy specifics, Sheinbaum pledged to deliver on commitments of her predecessor for items like infrastructure development in southeast Mexico for new natural gas and gas-fired power generation — moves that may not support resumption of the ETS and limiting the nation's emissions. "The only way Mexico can measure and control its emissions is through an ETS," Piquero said. Sheinbaum is set to announce government appointments this week, which would include her choice to head Semarnat, a choice that will color discussions on the future for the ETS program. Piquero expects the job will go to one of two candidates: Marina Robles García, secretary of the environment of Mexico City, or Jose Luis Samaniego, a division chief with the UN Economic Commission for Latin America and the Caribbean. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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