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Cop: German opposition pushes for Article 6

  • Spanish Market: Crude oil, Emissions, Oil products
  • 14/11/24

Germany's main opposition parties have welcomed the progress achieved on Article 6 of the Paris Agreement in at the UN Cop 29 climate summit in Baku, Azerbaijan. They have called on Germany and the EU to make better use of the instrument to allow for more cost-efficient climate action.

Germany's dominant opposition party, the right-of-centre CDU/CSU, on 14 November commended the framework under Article 6 as an efficient way of reducing greenhouse gas (GHG) emissions.

Article 6 of the Paris accord aims to help set rules on global carbon trade. The Article 6 mechanism allows for reductions to happen where they are quickest, cheapest and easiest to be carried out, the CDU head of the working group on climate action and energy, Andreas Jung, said in a debate in the lower house of parliament, the Bundestag.

The deputy head of the FDP faction Lukas Koehler, also speaking in the Bundestag on 14 November, called on Germany and the EU to "finally" integrate the Article 6 in their climate action plans.

Koehler argued that if for instance Germany's progress in emissions reduction should turn out to be too slow, the country could temporarily shift its efforts — and the associated finance — to where more rapid mitigation might be achieved, such as Brazil.

The EU, of which Germany is a member state, will not make use of Article 6 credits, at least until 2030, to reach its so-called nationally determined contribution (NDC) – its climate action pledge — under the Paris climate accord.

The EU has been seeing progress on ongoing Article 6 negotiations at Cop 29, the European Commission's principal advisor for international aspects of EU climate policy Jacob Werksman said today, "mostly because parties are now agreeing with the EU and others that were concerned about the transparency and accountability of the bilateral markets that operate under Article 6.2".

Werksman believes there is enough momentum for negotiations to be concluded next week, noting that the atmosphere has "improved" compared with previous negotiations, which echoes the sentiment expressed by a number of negotiators earlier this week. Werksman pointed in particular to the US now agreeing with others and helping to broker compromises.

Koehler also warned German government representatives in Baku to refrain from "expensive" pledges which may strain the country's budget. Developed countries agreed in 2009 to deliver $100bn/yr in climate finance to developing nations, and Cop 29 is focused on the next iteration of this — the new collective quantified goal (NCQG).

In a statement, Germany — represented by Scholz despite his absence at the Cop — and other G7 members like Canada, France, or the Netherlands agreed that "developed countries must continue to take the lead and live up to existing finance commitments".

Germany faces early elections as the government lost its majority last week following the sacking, by chancellor Olaf Scholz of the Social Democrat SPD, of finance minister Christian Lindner of the pro-business FDP party and the FDP's subsequent withdrawal from the ruling coalition.

Polls suggest that the CDU/CSU group will easily win the next federal elections which are scheduled to take place on 23 February. The FDP's persistent refusal to allow Germany to take on more debt to enable more public funding, including of clean technologies, was the main reason for Lindner's sacking.


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20/06/25

Brazil's carbon market rulemaking could pick up

Brazil's carbon market rulemaking could pick up

Sao Paulo, 20 June (Argus) — Regulations required to put Brazil's regulated carbon emissions market into force have advanced slowly since congress passed legislation in late 2024, but this year may speed several key pieces. The government plans to gradually implement the market by 2030, even as it prepares to host the Cop 30 climate summit in Belem, Para state in the heart of the Brazilian Amazon in November. So far this year, the working group responsible for issuing the regulations that will govern the new market has met 20 times. Participants in the working group include representatives from 10 government ministries, but the finance ministry is spearheading regulations. A first round should be ready by July, the ministry said this week. The working group could define several elements in coming weeks, including clarity regarding the creation of the new agency that will oversee this market. The law stipulates that this new entity have its own technical staff and be independent from the government. "We urgently need to know who is going to be in charge of this market," Guilherme Lefevre, the director of the Getulio Vargas Foundation's sustainability center said, adding that the market needs to have a strong regulator to have credibility. For the market to move forward, Brazil also needs to create a national system for monitoring, reporting, and verification of greenhouse gas emissions. "Brazil still does not have this system, which is fundamental for the development of the regulated carbon market," Lefevre said. This system will underpin the national emissions allocation plan, which will grant companies emission quotas, which can be traded. The law requires companies that emit over 10,000 metric tonnes (t) of CO2 equivalent (tCO2e/yr) to report their emissions and companies with over 25,0000 tCO2e/yr in emissions to participate in the cap-and-trade system that will go into effect when the new carbon market begins operating completely in 2030. "So far, roughly 600 companies have reported their emissions and a total of around 5,000 companies will need to do so to comply with the market requirements," Laura Albuquerque, chief climate officer at Future Climate consultancy said. She added that that while companies in some sectors, such as steel and pulp and paper are already more prepared for the market, others are behind and are working to understand the extent to which the new market represents a risk or an opportunity. The government is also in a race against time to show progress towards creating the new market ahead of the November Cop 30 meeting, when it plans to launch an initiative that will integrate the Brazilian carbon market with markets in the EU, China and California. The goal is to use this coalition of carbons markets as a test case for a future, global carbon market. Not a silver bullet While the creation of a regulated carbon market is an important element of Brazil's decarbonization efforts, it is only part of the plan to meet its emissions-reduction targets. Compared with other countries, industry represents a small share of total emissions. In 2023 — the most recent year with available data — non-agricultural industry only accounted for just 4pc of Brazil's total emissions. Still, because the law permits companies on the regulated market to purchase a share of their credits from the voluntary market, tropical forest protection and restoration projects will also benefit. With Cop 30 leadership pushing for the next gathering to put into effect what has been agreed at previous summits, Brazil will likely feel pressure to advance more quickly on his own initiatives. Brazil's CO2 equivalent emissions by sector, 2023 mn t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Iran’s refineries at risk in escalating conflict


20/06/25
20/06/25

Iran’s refineries at risk in escalating conflict

Iran would probably have to curtail products exports and turn to the import markets if its refineries are attacked, write Ieva Paldaviciute and Nader Itayim Dubai, 20 June (Argus) — Key oil and gas production and export facilities have stayed out of the firing line a week into the conflict between Tehran and Tel Aviv, bringing a degree of relief to global markets. But the targeting of downstream assets by both sides has raised the spectre of looming domestic fuel shortages if the conflict endures. No Iranian crude refineries have been hit yet in the Israeli strikes that, for the most part, have focused on key military and nuclear-related infrastructure and personnel. But strikes on two gas processing facilities in the south of the country and two products storage facilities on the outskirts of Tehran suggest refineries, or condensate splitters, soon could be affected. Iran retaliated by attacking Israel's 197,000 b/d Haifa refinery on 15 June, damaging is power supply system. The plant initially continued crude processing while shutting some secondary units, but it fully halted operations on 17 June. Iran has nearly 2mn b/d of crude refining capacity spread across nine facilities, which rises to about 2.4mn b/d when including the 360,000 b/d Persian Gulf Star condensate splitter in Bandar Abbas, on the Mideast Gulf coast. This is up from below 1.9mn b/d a decade ago, after capacity additions at the 58,000 b/d Shiraz, 630,000 b/d Abadan and 220,000 b/d Tehran refineries, among others. Iran nevertheless has grappled with a severe products imbalance in recent years, driven primarily by a fast increase in its domestic fuel consumption. Although operations at all refineries remain unimpeded, the conflict has triggered a frenzy of fuel buying by Iranians, particularly in Tehran, with Israel warning residents to leave the city as it intensifies its bombing campaign. If any refining infrastructure is hit, Iran may quickly have to halt products exports to ensure that domestic supply can be met. Iran is a net exporter of fuel oil and naphtha, but its position as a gasoline and gasoil exporter has diminished in recent years owing to its fast-growing domestic demand. The reimposition of US sanctions on Iran by US president Donald Trump during his first term in 2018 and his "maximum pressure" campaign on Tehran at the start of his second term in January have only added pressure to its products trade. Iranian naphtha is shipped mainly to the UAE, where it is used as a gasoline blendstock. Iran exported about 116,000 b/d of naphtha in January-May, data from consultancy FGE show, down by 12pc from its 2024 exports. Transfer news Iranian fuel oil typically makes its way to floating storage hubs in Asia-Pacific, often after multiple ship-to-ship transfers designed to obscure its origin. Some cargoes are then re-exported to China and bought by independent refiners as feedstock fuel. Fuel oil exports stood at 252,000 b/d in the first five months of this year, down from 264,000 b/d last year. Iran has had to turn to imports to bridge the gap between its gasoline production of about 660,000 b/d and average consumption of 780,000 b/d during the Iranian year to 20 March 2025, according to state-owned refiner NIORDC. Iran's diesel production has also been playing catch-up, with heavily subsidised consumption exacerbated by fuel smuggling to neighbouring countries. Iran still exported 42,000 b/d of diesel this year, according to FGE, but this is less than half of the 102,000 b/d it exported last year. The Haifa refinery is a key supplier to Israel's domestic market but it also exported about 12,000 b/d of diesel and gasoil, and 13,000 b/d of fuel oil in January-May, mostly to neighbouring countries in the Mediterranean. A prolonged shutdown could result in Israel turning to products imports, pressuring supply chains in the Mediterranean. Israel aims to restart the plant within weeks. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

DUH fordert Drosselung von PCK-Produktion


20/06/25
20/06/25

DUH fordert Drosselung von PCK-Produktion

London, 20 June (Argus) — Die Deutsche Umwelthilfe hat vergangene Woche Widerspruch gegen die Emissionen-Ausnahmegenehmigung für die PCK Raffinerie Schwedt eingelegt und zugleich ein gerichtliches Eilverfahren vor dem zuständigen Verwaltungsgericht begonnen. Sollte der Eilantrag Erfolg haben, müsste die PCK ihren Betrieb drosseln, so die Hoffnung der DUH. Das Landesamt für Umwelt in Brandenburg (LfU) hatte Ende April 2025 der PCK (230.000 bl/Tag) in Schwedt die Ausnahmezulassung erteilt, fünfmal so viel Schwefeldioxid und Schwefeltrioxid zu emittieren wie das zulässige Tagesmittel. Das entspricht einer Anhebung der zulässigen Tagesemissionsgrenze — laut Bundesemissionsschutzverordnung (BImSchV) — von 200 mg/Nm3 auf 1000 mg/Nm3.Die erteilte Ausnahmeregelung soll vorerst bis Dezember 2027 gelten. Begründet hatte die PCK den genehmigten Antrag damit, dass eine Einhaltung seit dem Ende der Rohölversorgung aus Russland nicht mehr möglich sei. Seitdem werden über Rostock, Danzig und aus Kasachstan bis zu 20 verschiedene Rohölsorten mit unterschiedlichen Schwefelgehalten importiert, was zu höheren Emissionen von teilweise bis zu 1000 mg/Nm3 führen kann. Die Deutsche Umwelthilfe (DUH) sieht in der erteilten Genehmigung "gravierende Verstöße gegen europäisches und nationales Umwelt- und Genehmigungsrecht". Die Genehmigung hätte nur einem "Verfahren mit Umweltverträglichkeitsprüfung und grenzüberschreitender Öffentlichkeitsbeteiligung erteilt werden dürfen." Außerdem würde die Genehmigung dem Bundes-Immissionsschutzrecht widersprechen, das sich an Tagesmittel- und Halbstundenmittelwerten als Emissionsgrenzwerte orientiere, so die DUH. Die DUH hat am 13. Juni beim LfU Widerspruch gegen die Ausnahmeregelung für die PCK eingelegt und zudem einen gerichtlichen Eilantrag an das Verwaltungsgericht Frankfurt/Oder, der an das zuständige Gericht in Potsdam weitergeleitet wurde, eingereicht. Eine inhaltliche Entscheidung könnte bereits in der KW 26 getroffen werden, so das Verwaltungsgericht Frankfurt/Oder. Von einem erfolgreichen Eilantrag beim Verwaltungsgericht in Brandenburg erhofft sich die DUH, dass die in Kraft getretene Ausnahmegenehmigung zunächst aufgeschoben, und die PCK dadurch verpflichtet sein wird, den Betrieb zu drosseln, um die geltenden Emissionsobergrenzen laut BImSchV einzuhalten. Das polnische Klimaministerium hatte sich am 23. Mai zu der erteilten Ausnahmeregelung geäußert. Es erklärte in einer Mitteilung nach dem Treffen mit dem deutschen Bundesumweltminister Carsten Schneider, dass eines der besprochenen Themen die Sorge um die Schwefeldioxidemissionen der Raffinerie in Schwedt gewesen sei. Das polnische Ministerium bat das deutsche Ministerium um Unterstützung bei der Ansprache des Themas mit der brandenburgischen Landesregierung. Dabei bat die polnische Seite um Zugang zu Messungen der Luftqualität im Raum Schwedt und erklärte, dass das deutsche Ministerium sich diesbezüglich kooperativ zeige. Die PCK beliefert neben dem deutschen Einzugsgebiet weite Teile Westpolens mit Produkt. Von Marc Hauschild und Tomasz Stepien Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

Pakistan loses EU GSP+ ethanol status


20/06/25
20/06/25

Pakistan loses EU GSP+ ethanol status

London, 20 June (Argus) — The European Commission today suspended Pakistan's Generalised Scheme of Preferences Plus (GSP+) status for imports of ethanol. The removal is effective from today, 20 June. A request was lodged in May last year by France, Germany, Spain, Italy, Hungary and Poland, who sought to activate Article 30 of the GSP Regulation, arguing that ethanol coming from Pakistan since 2022 has "caused a serious disturbance to the Union ethanol market". Under Article 30, the commission can "adopt an implementing act in order to suspend the preferential arrangement in respect of the products concerned". Pakistan was granted GSP+ status in 2014, and this expired at the end of 2023. The status was temporarily extended until 2027. The GSP+ grants reduced-tariff or tariff-free access to the EU for vulnerable low- and lower- to middle-income countries that, according to the EU, "implement 27 international conventions related to human rights, labour rights, protection of the environment and good governance". It fully removes custom duties on two-thirds of the bloc's tariff lines in Pakistan's case, including ethanol. Pakistan is a major supplier of industrial-grade ethanol to Europe, but it does not export fuel-grade ethanol. According to market participants, this is because production facilities in the country lack sustainability certifications such as the International Sustainability and Carbon Certification (ISCC) that are required for biofuels to qualify under the EU Renewable Energy Directive (RED) targets. Fuel-grade ethanol was not included in the bloc's measures. Several Pakistani market participants were hopeful the GSP+ status will remain in place, which has continued to support ethanol exports from the country to the EU ( see table ). But uncertainty has weighed on demand from Europe recently, suppliers said. A participant told Argus that Pakistani sellers may look to offer more into Africa to soften the drop in demand. Some European suppliers anticipated this outcome, and have already stopped importing from Pakistan. European renewable ethanol association ePure expressed concern about the decision to exclude fuel ethanol from the scope of the measures, noting this could open the door to unintended loopholes and weaken the overall effect of the safeguard efforts. By Evelina Lungu and Deborah Sun European ethanol imports from Pakistan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Egypt’s diesel imports rise as Israeli gas halt bites


20/06/25
20/06/25

Egypt’s diesel imports rise as Israeli gas halt bites

Dubai, 20 June (Argus) — Egypt is ramping up diesel imports to keep its power plants running after Israel halted pipeline natural gas supply in response to its ongoing conflict with Iran. The country is on track to receive 354,000 b/d of diesel and other gasoil in June, according to preliminary data from Vortexa. Kpler estimates a lower volume of 275,000 b/d. By comparison, Egypt imported an average of 217,000 b/d in 2024, both firms show. More than 60pc of this month's imports are coming from Saudi Arabia, primarily from the Red Sea ports of Yanbu and Jizan. These cargoes benefit from proximity and a freight advantage, as they can reach Egypt while avoiding the security risks in the Bab el-Mandeb strait. The surge in diesel demand follows Israel's suspension of gas exports to Egypt and Jordan on 13 June, after it shut production at the Leviathan and Karish gas fields in response to an escalation in its conflict with Iran. On the same day, Egypt's energy ministry announced it had halted gas supply to some industrial users and instructed power plants to burn diesel in the "maximum available quantity". Egypt is seeking to ensure adequate power generation during the onset of the summer cooling season. Its need to replace lost gas supply with diesel is adding pressure to an already tight European diesel market . Already structurally short of diesel, Europe has faced reduced inflows from the Mideast Gulf and India since April, while US shipments have been limited. Diesel values and refining margins in Europe have shot up in the past week as supply concerns mount and freight rates rise. The Mediterranean market is particularly tight following the introduction of a new International Maritime Organisation emissions control area (ECA) in May. The ECA requires ships to use fuel with a maximum sulphur content of 0.1pc, down from 0.5pc. Marine gasoil (MGO) and ultra-low sulphur fuel oil (ULSFO) meet the new standard. But much of the gasoil used in MGO blending is also suitable for desulphurisation and road fuel use, so its diversion into marine fuels is tightening diesel supply. Egypt could also turn to fuel oil for power generation, which may further increase MGO demand and tighten the Mediterranean diesel market. Meanwhile, repair and maintenance work at Israel's two refineries has placed additional strain on diesel and other gasoil supply in the Mediterranean. The 197,000 b/d Haifa refinery was shut on 16 June after being damaged in an Iranian missile strike, and the Ashdod refinery entered partial scheduled maintenance on the same day. Egypt is due to install two additional floating storage and regasification units (FSRUs) by the end of June. The added LNG import capacity could help offset the loss of Israeli gas and ease diesel demand. By Ieva Paldaviciute and Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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