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Japan firms study carbon neutral fuels for auto sector

  • Spanish Market: Biofuels, E-fuels, Emissions
  • 27/05/24

A group of Japanese companies are exploring the possibility of expanding the use of carbon neutral fuels — such as synthetic fuels, or e-fuels, and biofuels — in the country's automobile sector, aiming to cut carbon dioxide (CO2) emissions from internal combustion engine vehicles.

Japanese auto manufacturer Toyota, engineering firm Mitsubishi Heavy Industries and refiners Idemitsu and Eneos said on 27 May that they had signed an initial agreement to jointly carry out a feasibility study by discussing scenarios, roadmaps and necessary regulations to introduce the clean fuels around 2030.

The partnership assumes domestic production of e-fuels and biofuels to enhance the country's energy security. They plan to produce e-fuels from CO2 and renewable-based hydrogen, while biofuels will be derived from plants and other sources. But potential output capacity is still unclear. It is also unknown how they will buy feedstocks to produce the clean fuels, creating the possibility for imports and domestic purchases.

Japan has pledged to ban sales of gasoline-only passenger cars and a shift to electric vehicles (EVs) by 2035, part of its 2050 net zero emissions goal. But EVs also include fuel-cell vehicles, plug-in hybrids and hybrid EVs. This suggests the country will need cleaner fuels to decarbonise engines burned by fossil fuels.

Toyota has already introduced in Brazil since 2007 a hybrid, flex-fuel vehicle that can run on biofuels and gasoline. The company will invest 11bn real ($2.1bn) in Brazil over the next six years to decarbonise and electrify its fleet. But it is still unclear how many flex-fuel vehicles it will introduce in Japan, the company said.

To help reduce CO2 emissions from the auto sector, Japan's trade and industry ministry already requires domestic refiners to use 500,000 kilolitres/yr (8,616 b/d) of the crude equivalent of ETBE or bioethanol. Brazil is currently the sole bioethanol supplier to Japan with 55,179 bl delivered in February.


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23/04/25

Brazilian wildfires burn 70pc less area in 1Q

Brazilian wildfires burn 70pc less area in 1Q

Sao Paulo, 23 April (Argus) — Wildfires in Brazil scorched an area almost equivalent to the size of Cyprus in January-March, but still 70pc less than in the same period in 2024 as the rainy season was above average in most of the north-central part of the country this year. The wildfires spread out over 912,900 hectares (ha) in the first three months of 2025, down from 2.1mn ha in the same period of 2024, according to environmental network MapBiomas' fire monitor researching program. The reduced burnt areas are related to the rainy season in most of the country, but still-high wildfire levels in the Cerrado biome showed that specific strategies are necessary for each biome to prevent further climate-related impacts, researchers said. The Cerrado lost 91,700ha to wildfires in the first quarter, up by 12pc from a year before and more than double from the average since 2019. Burnt areas in the Atlantic forest also increased 18,800ha in the period, up by 7pc from a year earlier. Wildfire-damaged areas in the southern Pampa biome, or low grasslands, grew by 1.4pc to 6,600ha. The Amazon biome lost over 774,000ha to wildfires in the first quarter of 2025, a 72pc drop from a year earlier, while it accounted for almost 52pc of burnt areas in March. The loss represented 84pc of the total burnt land in the period. Burnt areas in the central-western Pantanal biome, or tropical wetland, fell by 86pc in the first quarter to 10,900ha. The northeastern Caatinga biome, or seasonally dry tropical forest, lost around 10,000ha in burnt areas, down by 8pc from the same period in 2024. Reductions may not persist as a drought season will begin in May and is expected to be severe, according to Mapbiomas. Last year, an extended drought season prompted burnt areas to grow by 79pc from 2023. Northern Roraima state was the state to suffer the most from wildfires in the period, with 415,700ha lost to wildfires during its distinct drought season in the beginning of the year, while other states faced a rainy season. Northern Para and northeastern Maranhao followed, with 208,600ha and 123,800ha of burnt areas, respectively. Wildfires hit over 24,730ha of soybean fields in the period, a 29pc decrease from a year earlier, while burnt areas in sugarcane fields fell by 31pc to around 7,280ha. Wildfires hit 106,600ha of the country in March, a 86pc decrease from 674,900ha a year earlier. By João Curi Burnt areas in March ha 2025 2024 Amazon 55,172 732,929 Cerrado 37,937 20,995 Atlantic Forest 9,262 4,509 Caatinga 2,296 755 Pampa 1,514 127 Pantanal 562 21,799 Total 106,641 781,114 — Mapbiomas - Monitor do fogo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US wants IMF, World Bank to drop climate focus


23/04/25
23/04/25

US wants IMF, World Bank to drop climate focus

Washington, 23 April (Argus) — US president Donald Trump's administration today called on the IMF and the World Bank to focus resources away from climate action and energy transition and to make lending available to fossil fuels programs. The IMF "devotes disproportionate time and resources to work on climate change, gender, and social issues," US treasury secretary Scott Bessent said in remarks today timed to coincide with the two international lending institutions' annual meeting in Washington. "Like the IMF, the World Bank must be made fit for purpose again," he said, during an event hosted by trade group Institute of International Finance. The IMF and the World Bank in recent years have followed the preferences of their largest shareholders — the US and European countries — in incorporating the effects of climate change in their analysis and to facilitate energy transition in the emerging economies. The World Bank, together with other multilateral development banks globally, announced at the UN Cop-29 climate conference last year that they could increase climate financing to $170bn/yr by 2030, up from $125bn in 2023. "I know 'sustainability' is a popular term around here," Bessent said. "But I'm not talking about climate change or carbon footprints. I'm talking about economic and financial sustainability." Bessent urged the World Bank to "be tech neutral and prioritize affordability and energy investment," adding that "in most cases, this means investing in gas and other fossil fuel based energy production." "In other cases, this may mean investing in renewable energy coupled with systems to help manage the intermittency of wind and solar," Bessent said. The US is the largest shareholder at both the IMF and the World Bank, with a 16pc stake in both institutions. The Trump administration, which has slashed climate programs at US government institutions and withdrew the US from climate-focused international efforts, has so far refrained from interfering in the operations of the IMF and the World Bank. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Bio-bunker sales in Rotterdam down in 1Q


23/04/25
23/04/25

Bio-bunker sales in Rotterdam down in 1Q

London, 23 April (Argus) — Sales of marine biodiesel blends in Rotterdam fell for the third consecutive quarter in January-March as demand shifted east of Suez. Port data for the first quarter of 2025 show marine biodiesel blend sales declined by 12pc compared with the previous three months and by 60pc compared with the same period last year. The decline was underpinned by lower prices in Singapore. B24 dob Singapore — a blend comprising very low sulphur fuel oil (VLSFO) and used cooking oil methyl ester (Ucome) — averaged a $36/t discount against B30 advanced fatty acid methyl ester (Fame) 0 dob ARA in the first quarter, and a $129.74/t discount against B30 Ucome dob ARA. This price dynamic made Singapore an attractive bunker hub for those shipowners opting to use biodiesel blends to help their customers meet sustainability goals. It also attracted demand from shipowners bound by the FuelEU maritime regulations introduced in January this year. The regulations require a reduction in greenhouse gas (GHG) emissions from ships travelling into, out of and within EU waters, but energy consumed from blends bunkered in Singapore can be mass balanced to be fully accounted for under the scope of the rules. A pooling mechanism within the regulations also allows vessels operating on the east-west route to utilise compliance generated from marine biodiesel blends bunkered in Singapore across other ships that operate solely in Europe. While biodiesel bunker sales in Rotterdam fell, biomethanol sales at the port soared almost sixfold in January-March compared with a year earlier. The sharp rise in demand reflects the rollout of FuelEU Maritime , higher mandates in Europe for the use of renewables in transport this year and changes to regulations on the carryover of renewable fuels tickets in Germany and the Netherlands . Sales of conventional bunker fuels in Rotterdam edged up by a more modest 1pc on the quarter and by 7pc on the year. Sales of high-sulphur fuel oil (HSFO) overtook those of very low sulphur fuel oil (VLSFO), reversing the trend of the previous quarter despite the imminent addition of the Mediterranean Sea as an Emission Control Area (ECA). Ships without scrubbers that sail through ECA zones must use fuels with a maximum sulphur content of 0.1pc, such as marine gasoil (MGO) and ultra low sulphur fuiel oil (ULSFO). LNG bunker sales in Rotterdam fell by the 13pc on the quarter in January-March, reflecting a price rally at the Dutch TTF gas hub in late January and early February. The Argus northwest Europe LNG bunker price stood at a two-year high of €64.35/MWh on 6 February. LNG bunker sales were still higher than in the first quarter last year, which likely stems from the introduction of the FuelEU Maritime regulations. By Hussein Al-Khalisy, Natália Coelho, Gabriel Tassi Lara, Evelina Lungu and Cerys Edwards. Rotterdam bunker sales t Fuel 1Q25 4Q24 1Q24 q-o-q % y-o-y % VLSFO 789,218 810,831 680,782 -2.7 15.9 ULSFO 187,031 193,567 176,797 -3.4 5.8 HSFO 829,197 780,437 818,028 6.2 1.4 MGO & MDO 393,071 395,903 383,409 -0.7 2.5 Conventional total 2,198,517 2,180,738 2,059,016 0.8 7 Biofuel blends 104,037 118,201 262,634 -12 -60.4 LNG (m³) 230,129 263,068 215,247 -12.5 6.9 biomethanol 5,490 930 0 490.3 na Port of Rotterdam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UN reminds leaders GHG plans need to be 1.5°C-aligned


23/04/25
23/04/25

UN reminds leaders GHG plans need to be 1.5°C-aligned

London, 23 April (Argus) — Leaders, including from major emitters China and the EU, committing today to put forward "ambitious and robust [climate] plans as soon as possible" is a message of hope, but they should align with the Paris Agreement's goals and "speed up a just transition away from fossil fuels," UN secretary-general Antonio Guterres warned. China today reiterated that it will submit a new national climate plan which covers "all economic sectors and all greenhouse gases", according to Guterres. "This is extremely important for climate action", Guterres said. China is the world's highest-emitting country, with plans to reach net zero emissions by 2060 — behind the mid-century target that climate science suggests to avoid the worst impacts of a heating world. Guterres spoke immediately after a meeting that he and Brazil's president Luiz Inacio Lula da Silva convened, in which 17 world leaders participated, including China's president Xi Jinping. Brazil is hosting the UN Cop 30 climate summit in November. The meeting was arranged so that world leaders could hear from one another that addressing climate change remains a priority, a senior UN official said. "Leaders need reassurance that they're not acting alone", the UN official said. "Dissenters and fossil fuel interests may try to stand in the way," Guterres said, but "no group or government can stop the clean energy revolution". The EU's and China's NDCs — not yet submitted — will act as useful references, Brazil's official noted. European Commission president Ursula von der Leyen and European Council president Antonio Costa also participated in the meeting today. Participants were limited to heads of state or government and included chairs of the African Union, the Caribbean Community, the Association of Southeast Asian Nations and the Alliance of Small Island States. The EU still has yet to officially propose a 2040 climate target . It plans to derive its 2035 goal, which will form the basis of its NDC, from this. Senior officials from Brazil and the UN expect most country submissions by September. Cop 30, which will be held in the Amazonian city of Belem, will mark ten years since the landmark Paris accord was negotiated. It requires countries to review and revise climate plans — known as nationally determined contributions (NDCs) — every five years, increasing ambition. NDCs for the period up to 2035 are due to be submitted this year, to UN climate body the UNFCCC. NDCs are a crucial element in keeping to the temperature boundaries sought by the Paris agreement — limiting a rise in temperature to "well below" 2°C above pre-industrial levels and preferably to 1.5°C. Brazil's official acknowledged that this current round of NDCs may not go far enough to hit those goals, noting that "closing the gap" will be a key issue. The majority of countries missed a 10 February deadline to submit their NDCs for the period to 2035, while ambition varied among those completed. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India consults industries on emission intensity targets


23/04/25
23/04/25

India consults industries on emission intensity targets

London, 23 April (Argus) — The Indian government has launched a consultation on greenhouse gas emission intensity (GEI) targets for obligated entities under its forthcoming Carbon Credit Trading Scheme (CCTS). The GEI targets, also labelled as "Greenhouse Gases Emission Intensity Target Rules, 2025" by the Indian government, are set to contribute to the country's nationally determined contribution (NDC) through emissions reduction, removal or avoidance, according to the official draft notification from the ministry of environment. The government has given liable companies until mid-June, or 60 days since publication on the official gazette on 16 April, to comment on the drafted GEI targets. These cover emissions from a total of 282 companies from four different sectors. The cement sector comprises more than 65pc of the list, with 186 companies, followed by the pulp and paper, chlor-alkali and aluminium sectors with respective 53, 30 and 13 companies each. The GEI targets comprise two compliance periods, 2025-26 and 2026-27, and can be achieved by either reducing emissions or by "purchasing carbon credits certificates from the Indian carbon market" according to the draft. Companies keeping emissions below the targets will be issued carbon credits. These can be either banked until the next compliance cycle, or sold to underperforming firms. Obligated entities that underperform and fail to submit carbon credits equivalent to the shortfall for compliance will be charged twice the average traded carbon price for the related compliance cycle. The price will be calculated by the bureau of energy efficiency, which sits within India's power ministry. The GEI targets are the latest instrument introduced by the Indian government to shape up its domestic carbon market. It first introduced the idea of a carbon market with the Energy Conservation bill in 2022. This was then followed by the Carbon Credits Trading Scheme in 2023 and the Detailed Procedure for Compliance Mechanism under CCTS in July 2024. By Nicola De Sanctis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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