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Air New Zealand abandons 2030 emissions target

  • Spanish Market: Biofuels, Emissions, Hydrogen, Oil products
  • 30/07/24

State-controlled carrier Air New Zealand has announced its withdrawal from the Science Based Targets initiative, saying its 2030 emissions reduction goal is unachievable because of issues outside the airline's control.

It cited factors including affordability and availability of alternative jet fuels, as well as a lack of global and domestic regulatory and policy support.

"In recent months, and more so in the last few weeks, it has also become apparent that potential delays to our fleet renewal plan pose an additional risk to the target's achievability," chief executive Greg Foran said on 30 July.

Air New Zealand said it will develop a new short-term carbon emissions reduction target while working to transition away from fossil fuels and reach net zero emissions by 2050.

The company was aiming to cut its carbon intensity by 28.9pc before 2030 from a 2019 baseline, or an absolute reduction in emissions by 16.3pc over the same period, pledging to consider electric, hybrid and green hydrogen aircraft as part of its decarbonisation strategy.

It expected sustainable aviation fuel (SAF) would comprise 10pc of jet fuel use in the 2029-30 fiscal year as part of the target. But New Zealand's previous Labour party government cancelled a planned biofuels mandate early last year in a blow to the sector's domestic manufacturing hopes.

Air New Zealand took delivery of a 500,000 litre SAF shipment last month and has a deal with Finnish producer Neste for 7,200t for use at Los Angeles airport, as no SAF is currently produced in New Zealand.

But Air New Zealand said it was paying a fourfold premium on the price of jet fuel for the imports, advocating for a SAF-specific mandate to spur domestic production in its 2023 sustainability report.


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29/01/25

Montana biofuel loan delayed by White House: Calumet

Montana biofuel loan delayed by White House: Calumet

New York, 29 January (Argus) — US refiner Calumet said a $1.4bn federal government loan to help it boost biofuel production was among the billions of dollars of federal spending put on hold by President Donald Trump. In the waning days of President Joe Biden's term, the Department of Energy (DOE) closed a $1.4bn loan agreement with Calumet subsidiary Montana Renewables , which plans to more than double production capacity at its Great Falls, Montana, biofuel plant and convert more output to low-carbon jet fuel. The company was due to receive an initial $782mn loan, with the remaining funds disbursed as the project advances, but Calumetsaid this week that DOE officials said the first tranche was delayed so that officials can confirm "alignment with White House priorities." An order freezing tens of billions of dollars in other federal spending issued this week was blocked by a federal judge and then at least partly rescinded today. Calumet declined to say today whether the administration had provided any updates. The company previously indicated that the Department of Energy estimated the delay would take "days or weeks." The Department of Energy did not immediately respond to a request for comment. Montana Renewables' Great Falls plant currently produces 140mn USG/yr of biofuels, mostly renewable diesel. The planned expansion would allow the facility to produce 300mn USG/yr of sustainable aviation fuel (SAF) and 30mn USG/yr of renewable diesel from vegetable oils and tallow. The company said this month that it expects half of that eventual SAF capacity to come online in 2026 and to complete the project in 2028. The Department of Energy's Loan Programs Office, which offers low-interest loans to advanced energy projects, was always expected to be a top target for a new Trump administration. The Inflation Reduction Act gave the office an expanded mission and more lending authority, but Republicans have long argued the office supports risky projects. While companies that had only received conditional commitments from the office are more likely at risk of never seeing federal funds, even projects with final agreements must meet certain commercial and legal conditions to access full debt financing. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Switzerland targets 65pc emissions cut by 2035


29/01/25
29/01/25

Switzerland targets 65pc emissions cut by 2035

Berlin, 29 January (Argus) — Switzerland has set a new greenhouse gas (GHG) reduction target, aiming to cut emissions by at least 65pc by 2035 across all sectors, compared with 1990 levels. The country submitted its new climate plan under the Paris agreement — its nationally determined contribution (NDC) — to the UN climate body the UNFCCC today. Countries party to the Paris accord are due to submit new NDCs including sectoral GHG reduction targets for 2035 by 10 February. "The target corresponds to a greenhouse gas budget of 106.8mn t of CO2 equivalents, which is equivalent to an average reduction of GHG emissions by at least 59pc over the period 2031–2035," according to the NDC. The targets are to be achieved "primarily" through domestic measures, but the country has the option of including reductions achieved abroad. "In this respect, Switzerland wishes to continue using internationally transferred mitigation outcomes (ITMO) — emission credits — from cooperation initiatives under article 6 of the Paris Agreement," the NDC said. Switzerland's dependence on the use of some non-domestic measures to meet its goals once again drew criticism, with environmental group 350.org today slamming the country's "unquantified" reliance on international carbon trading mechanisms. This raises "serious concerns" about the "credibility" of Switzerland's reduction commitment, 350.org said. The government said that the targets correspond to the recommendations of the Intergovernmental Panel on Climate Change (IPCC). The measures to achieve the reduction in emissions will be enshrined primarily in the amended CO2 law for the period from 2030. The government will send a draft bill to parliament "in due time". The long-term climate strategy assumes that in 2050 Switzerland will still be emitting about 11.8mn t/yr of CO2 equivalent (CO2e), mainly from the agriculture, industry, and waste sectors. The country will therefore need negative emissions exceeding these residual emissions to reach a net-negative balance. The country has already held its first tenders for net negative emissions technologies. Switzerland's climate policy last year came under fire as the European Court of Human Rights ruled that the country's authorities violated Article 8 of the European Convention on Human Rights by insufficiently protecting its citizens from the serious adverse effects of climate change. Switzerland's government rejected the ruling, arguing among other things that the court did not take into account the country's revised CO2 law, which came into force a month before the ruling in March 2024. The government also warned against extending the right of appeal to associations to include climate issues, as this would make the realisation of "urgently needed" infrastructure even more difficult. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

ECA's green export finance bypasses developing nations


29/01/25
29/01/25

ECA's green export finance bypasses developing nations

Berlin, 29 January (Argus) — The "greening" of export credit agency's (ECA) finance which occurred in the past decade has largely bypassed developing countries, with investments mainly flowing to higher-income countries, according to a study on ECA transactions. The study, carried out by researchers from the business schools HEC Lausanne, ETH Zurich and HEC Paris, shows that ECA energy finance going to lower-income countries dropped to below 30pc in 2022-23 from 47pc in 2013-15. ECAs, including export-import banks, are state-backed agencies that help national exporters finance deals abroad by providing guarantees or loans. The share of ECA renewables commitments — mostly offshore wind and, increasingly, green hydrogen — rose to around 40pc in 2022–23, from under 10pc in 2013. The complete phase-out of fossil fuel financing appears "distant", the researchers noted. While ECAs handle financing volumes "on a par with multilateral development banks such as the World Bank", the scope and direction of their energy investments have largely remained "opaque", the researchers said. The study is based on an analysis of almost 1,000 transactions between 2013-23 which financed energy-related infrastructure and were supported by ECAs. For some key ECA countries such as China or Canada, data is only partially available. The study also reveals "notable" disparities between countries. Most members of the Export Finance for Future coalition (E3F), a group of European countries committed to aligning their export finance with the Paris climate agreement, have introduced stricter fossil fuel exclusions and are boosting their renewable portfolios. At the same time, major players like South Korea, Japan, and China have maintained significant levels of oil and gas lending. OECD countries should introduce "more rigorous climate policies" and renew international cooperation, the researchers said, particularly with non-OECD countries such as China. The OECD — where ECA terms and conditions are negotiated — could relaunch the International Working Group on ECAs, they said, to help ensure that countries phasing out support for fossil fuels do not see their market shares grabbed by others. Better renewable investment support via ECAs could help scale up the new collective quantified goal (NCQG) on climate finance, set at a minimum of $300bn annually by 2035 at the last UN Cop 29 climate summit in November, the researchers said. And ECA mandates could also be broadened to accommodate the needs of lower-income regions. "It is high time for ECAs to complete the shift to renewable energy, and through carefully designed policies and international cooperation, become true catalysts for a rapid and just energy transition," lead author Philipp Censkowsky from HEC Lausanne said. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Sydney Airport transits up by 7pc in 2024


29/01/25
29/01/25

Sydney Airport transits up by 7pc in 2024

Sydney, 29 January (Argus) — Passenger numbers rose on the quarter and year at Australia's Sydney Airport in October-December, but remain behind pre-Covid-19 levels, meaning jet fuel demand is likely to be higher in 2025. Total transits at the nation's busiest airport were up by more than 500,000 on a year earlier in the quarter, aided by a 7pc rise in international passengers, while domestic numbers were up by 4pc. Numbers were also up in 2024 compared with 2023's annual figure, again aided by a 12pc rise in international terminal passengers, while domestic numbers rose by just 4pc. Total transits of 41.39mn were 7pc higher than a year earlier but are still 7pc below 2019 levels, the last full year before pandemic-era travel restrictions resulted in Sydney's figures dropping by 75pc in 2020 . Passenger traffic at Australia's Melbourne Airport — the nation's second busiest — rose by 7pc on the year in 2024 to 35.75mn , 5pc below 2019's 37.45mn. Jet fuel sales rose by 11pc in the first 11 months of 2024 to 160,000 b/d, with November the latest month for which data from Australian Petroleum Statistics are available. The figure was 161,000 b/d in January-November 2019, suggesting further growth in jet fuel demand is possible this year. By Tom Major Sydney Airport passenger traffic mn Oct-Dec '24 Jul-Sep '24 Oct-Dec '23 2024 2023 2019 q-o-q % ± y-o-y % ± 2024 vs 2023 % ± Total 11 10.3 10.5 41.4 38.7 44.4 6 5 7 International 4.4 4 4.1 16.3 14.5 16.9 8 7 12 Domestic 6.7 6.3 6.4 25.1 24.1 27.5 5 4 4 — Sydney Airport Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US tariffs could shift Mexican HSFO to Panama


28/01/25
28/01/25

US tariffs could shift Mexican HSFO to Panama

New York, 28 January (Argus) — Proposed US tariffs on Mexican goods would raise US costs for Mexican high-sulphur fuel oil (HSFO), potentially shifting flows of the country's marine fuel to the Central American bunkering hub of Panama. US president Donald Trump has said he will impose 25pc import tariffs on goods from Mexico. US oil companies are asking Trump to exclude oil from tariffs , but it is unclear whether Trump will oblige. Mexico's residual fuel oil exports reached a record high of 218,059 b/d in the first 10 months of 2024, according to data from Mexican state-owned Pemex. The US took most of Mexico's residual fuel oil exports during that period, importing 145,830 b/d from its neighbor, including 124,341 b/d that went to the US Gulf coast, according to US Energy Information Administration data. Should Trump implement the 25pc tariffs, companies bringing Mexican residual fuel oil to the US could reduce bids in effort to recoup their tariff costs. But lower bids could prompt Mexican exporters to redirect some of residual fuel oil to buyers in Panama, northwest Europe and Singapore. If the price makes sense, Panama bunker suppliers could displace some of their US Gulf coast import barrels with Mexican barrels, as Panama suppliers "are constantly out there hunting for the best price available in the international market", a Panama supplier told Argus . Panama's HSFO bunker demand averaged 25,466 b/d (1.19mn t) in January-October 2024. The country does not have an operational refinery and is dependent on imports for all its oil product needs. Panama received the bulk of its residual fuel oil shipments from Mexico, the US Gulf coast and Peru, according to ship tracking data from Vortexa. Trump has also promised unspecified actions to take control of the US-built Panama Canal in response to what he says has been unfair treatment of US ships, a claim that Panama president Jose Raul Mulino has rejected. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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