Brazil's Bndes, IDB eye Amazon recovery

Spanish Market: Agriculture, Emissions
27/01/25

Brazil's development bank Bndes and the Inter-American Development Bank (IDB) will finance $1mn in projects to help restoreAmazonian states' forestsand boost regional economy.

The partnership aims to help preserve the Amazon rainforest and strengthen sustainable agricultural practices through joint projects between public and private parties.

States that house the Amazon rainforest are northern Acre, Amapa, Amazonas, Para, Rondonia, Roraima and Tocantins, along with central-western Mato Grosso and northeastern Maranhao.

Bndes did not disclose when the project will begin.

This is the latest of a series of Bndes investments to restore the Amazon. The bank has sent R405mn ($68.3mn) to eight Brazilian states to help firefighters combat wildfires and prevent deforestation. It also set out a R1bn plan to restore deforested and degraded areas in the Amazon in 2023.

Brazil, which will host the UN Cop 30 climate summit in November, faced rampant deforestation in previous governments. Almost half of Brazil's emissions were linked to land-use and forestry as of January 2024.

Brazil's emission reduction targets made on previous Cop summits rely heavily on slashing deforestation, specially in Amazon. Brazil's portion of the Amazon biome lost over 17.6mn hectares to wildfires in 2024. That accounts for 58pc of the country's total burnt area during the year, up by 62pc from 10.8mn ha a year before.

Para, where Cop 30 will take place, has prioritized sustainable economic activities and forest recovery efforts to diversify its income generation, governor Helder Barbalho said on the World Economic Forum last week.

By Maria Frazatto

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26/03/25

Brazil's Bolsonaro to face trial for coup attempt

Sao Paulo, 26 March (Argus) — Brazil's former right-wing president Jair Bolsonaro will face trial on charges of an attempted coup following his 2022 electoral defeat, the supreme court (STF) ruled today. In February Brazil's prosecutor-general charged Bolsonaro and seven other people — which include some of his former ministers — of plotting to guarantee that the former president stayed in power despite losing the election to current President Luiz Inacio Lula da Silva. The plot included the 8 January 2023 storming of government buildings in the capital of Brasilia and plans to kill his political opponents , the prosecutor-general said. STF's five-judge panel voted unanimously to put Bolsonaro on trial, with top judge Alexandre Moraes saying that the 8 January insurrection was a result of "systematic efforts" by Bolsonaro and his aides to discredit the election he lost. If convicted, Bolsonaro could face up to 40 years in jail. He is charged with five crimes, including leading an armed criminal organization, attempted coup and threatening to harm "the Union's assets." Although it is not clear when court proceedings will begin, they are expected this year, which is unusually fast for Brazil's justice system. "They are in a hurry, big hurry," Bolsonaro said of the legal proceedings on social media platform X, adding that the case is moving "10 times faster" than Lula's proceeding when he was on trial for the anti-corruption Car Wash investigation. Lula was eventually found guilty of money laundering and corruption and jailed in April 2018, but was later acquitted and freed in November 2019. Bolsonaro also added that the trial is politically motivated. "The court is trying to prevent me from being tried in 2026, because they want to stop me from running in the elections," he added. Brazil will hold presidential elections in October 2026. The electoral court voted in June 2023 to make Bolsonaro ineligible to run for any public office until 2030. But he is still seen as a major political force in the country. It is unclear who will serve as Bolsonaro's successor for more conservative voters, although Sao Paulo state's governor Tarcisio de Freitas has emerged as the most likely candidate. Bolsonaro — who sat in the president's seat from 2019-2022 — also faces several other legal challenges to his conduct as president, including allegations of money laundering, criminal association and embezzlement for allegedly receiving jewelry as gifts from Saudi Arabia related to the sale of state-controlled Petrobras' 330,000 b/d Landulpho Alves refinery in northeastern Bahia state to the UAE's Mubadala Capital. But none of these allegations have moved forward in the judiciary. During his administration, Bolsonaro privatized several state-owned energy assets and put little priority on environmental protections, policies that Lula has since reversed. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Lula visits Japan to talk ethanol, Cop 30, beef

25/03/25

Lula visits Japan to talk ethanol, Cop 30, beef

Sao Paulo, 25 March (Argus) — Brazilian president Luiz Inacio Lula da Silva traveled to Japan on Tuesday in search of energy transition agreements and new market opportunities to improve trade relations between the countries. Bilateral Japan-Brazil trade fell to around $11bn in 2024, down from $17bn in 2011, the Brazilian government said. Brazil exported $730mn in goods to Japan in January-February, while importing $995mn from the Asian country in the period, according to Brazil trade ministry data. Exports dropped by almost 13.5pc from a year before in the two-month period, while imports grew by nearly 25pc. "Firstly, we have [a shortfall] to turn around," Lula said. Brazil will also ask Japan to join its growth acceleration plan . He is accompanied by 11 ministers and four members of congress, including senate president Davi Alcolumbre and lower house president Hugo Motta. Ethanol market Brazil aims to sell more ethanol to Japan, as the Asian country expects to increase its ethanol blend to 10pc from 3pc by 2030. "If Japan blends 10pc of ethanol into gasoline, it will be an extraordinary step not only for us to export to them but for them to be able to produce in Brazil," Lula said. Japan received 3.4pc of Brazil's ethanol exports in 2024, according to Brazil's development and trade ministry. Cop 30 and energy transition Lula's visit also seeks to attract investment in renewable energy, forest revamps and new donations to the Amazon Fund, as well as a "strong commitment" from Japan at the Cop 30 summit, to be held in Brazil later this year. Brazil aims to export clean fuels to generate power to Japan, as power imports account for more than 80pc of all Japanese power demand and "a large share of it comes from fossil sources," according to the Brazilian foreign relations ministry's Asia and Pacific secretary Eduardo Saboia. Brazilian and Japanese companies announced earlier this year plans to produce biomethane in Brazil . The renewable fuel would supply both countries. Brazil and Japan should also sign a deal to help recover the Cerrado biome, which is the second largest biome in Brazil and the second most endangered. It comprises of savanah grasslands and forest and makes up about 25pc of the nation's territory. The Cerrado lost 9.7mn hectares to wildfires in 2024, up by almost 92pc from 2023, according to environmental network MapBiomas' fire monitor researching program. Deforestation is one of Brazil's flagship issues for Cop 30 this year. The country has been pushing for forest protection and recovery initiatives as most of Brazil's past Cop pledges cannot be met with only its remaining forests. Japan and Brazil should talk about the Amazon Fund as well because Brazil "wants more", Saboia said. Japan was the first Asian country to donate to the fund with $14mn, which Saboia said was "too little." Where's the beef? Lula is also targeting opening Japan's beef market to Brazilian exports, as the Asian country imports over 70pc of all its beef. Lula met with members of the beef exporters association Abiec in his first day in Japan to discuss the matter. The bulk of Japan's beef imports — 80pc — come from the US, the Brazilian government said. Brazil does not currently export beef to Japan. "Brazil has the logistic capacity to increase exports and double beef exports every four years," transport ministry Renan Filho said. Brazil has been trying to enter Japan's beef market for over two decades. This time, Lula expects to achieve a technical visit from Japan to inspect Brazil's beef producing conditions as a first step toward accessing the Japanese market. Lula will depart to Vietnam on 28 March to debate a plan to turn the country into one of Brazil's strategic partners. Only Indonesia is considered a Brazil strategic partner in southeast Asia. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US venue case crucial for future clean air fights

24/03/25

US venue case crucial for future clean air fights

New York, 24 March (Argus) — The US Supreme Court on Tuesday will hear arguments about the proper court venue for Clean Air Act lawsuits, which could be pivotal for future enforcement of federal air pollution rules. The court is considering both a case involving the Environmental Protection Agency's (EPA) rejections of small refiners' requests for hardship exemptions from a biofuel blend mandate and the agency's separate denials of state plans for addressing ozone-forming NOx emissions. Judges are not expected to decide the legality of EPA's decisions, just the proper courts for settling the disputes. But the cases are still significant: legal uncertainty to date has affected both EPA programs implicated by the Supreme Court's review and could upend enforcement of future rules if the court does not provide sufficient clarity. Federal ozone season NOx allowance prices essentially flatlined last year as participants were hesitant to trade due to risks from so many court cases. And small refinery exemptions are crucial for biofuel demand, so biofuel producers are wary of empowering more lower courts to reconsider denied exemption requests. The Clean Air Act says that EPA actions that are "nationally applicable" or otherwise based on "nationwide scope or effect" should proceed before the US Court of Appeals for the District of Columbia Circuit, while "locally or regionally applicable" actions head to regional circuit courts instead. But judges have disagreed about how to apply those criteria, since many EPA rules have far-reaching effects but on their face target individual states or facilities. Regulated industry fears that EPA could say a broad set of regulations have nationwide scope, centralizing review in the DC Circuit, which is seen as friendlier to federal regulators and where a majority of judges are Democratic appointees. Local conditions — such as a small refinery in Indiana serving local farmers that cannot handle higher biodiesel blends — get short-changed when various companies' concerns are assembled together, they argue. But EPA under the prior administration and Democratic-led states argue that sending these cases to the DC Circuit, which is more experienced with the complexities of federal rulemaking, makes more sense than letting industry seek out favorable jurisdictions. And they highlight the possibility of courts leaving emitters in one part of the country with laxer rules. "The fundamental risk is that you'll end up with decisions on the same point of law coming out differently in different places — and not an expedient way to resolve that," said Brian Bunger, a Holland & Knight partner and the former chief counsel at the Bay Area Air Quality Management District. For instance, both the DC Circuit and the conservative-leaning 5th Circuit agreed that EPA erred when it denied some refiners exemptions from biofuel blend mandates — but they said so for slightly distinct reasons. The 5th Circuit, for instance, went further by saying refiners reasonably relied on past EPA practice and thus the agency incorporating new analysis into its review of waiver requests was unfair. As a result, EPA recently used different criteria when weighing a waiver request from one refiner in the 5th Circuit's jurisdiction than it used for another refiner, according to partially redacted decisions obtained by Argus through a Freedom of Information Act request. The agency said it could not consider at all whether CVR Energy's 75,000 b/d refinery in Wynnewood, Oklahoma, is able to pass on the costs of program compliance to consumers because of the 5th Circuit decision but could weigh such information when deciding a similar petition from Calumet's 15,000 b/d refinery in Great Falls, Montana. The agency issued those decisions in the waning days of former-president Joe Biden's term. While President Donald Trump has pledged a vastly different approach to environmental regulation, his administration for now has not signaled a different stance than the Biden administration on whether these types of disputes should proceed before the DC Circuit. Schrodinger's case It is still unclear whether the judges view the cases as a tricky technical dispute or part of a broader trend of federal agencies overstepping their authority. Tuesday's hearing could provide clues. Of the court's nine justices, four previously served on the DC Circuit and could see value in sending more complex regulatory cases to the expert court, Bunger said. But the court's conservative majority could also be wary of giving EPA too much authority to set venue. Refiners argue that the agency repackaged dozens of individual exemption denials into two larger regulatory actions as a strategy to get the cases before a friendlier court. The Supreme Court has looked skeptically at other EPA rulings and last year overturned a decades-old legal principle that gave agencies leeway when interpreting ambiguous laws. Final Supreme Court decisions usually arrive by late June. However the court rules, businesses say that it should provide a clear enough explanation to prevent similar venue disputes from reemerging. The US Chamber of Commerce told the court it takes no position beyond urging the court to "adopt an interpretation that provides clarity and predictability to all stakeholders." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU readies tweak for CO2 car standards

24/03/25

EU readies tweak for CO2 car standards

Brussels, 24 March (Argus) — The European Commission is expected to approve this week a legal proposal which would increase flexibility for compliance with CO2 standards for cars and vans. The commission is expected to adopt, by written procedure, a legal proposal on 25 March, targeting additional flexibilities around penalties for cars and vans to meet CO2 emissions performance standards. The proposal is expected to enable compliance with CO2 targets to be calculated over a three-year period , rather than for single years. EU leaders last week called for the legal proposal to be put forward "without delay". EU leaders have also called on the commission to "take forward the review" foreseen in the CO2 for cars regulation. Industry has urged the EU to allow for low carbon and zero emission fuels to be accounted for under the CO2 standards. Separately, further delay to the EU's official emissions reduction goal for 2040 appears likely. The commission does not currently have a "concrete date" to give on the GHG proposal for 2040 but it "does not seem" to be scheduled for presentation this week. The official work program for the commission had listed the 2040 GHG target, an update to the European Climate Law, in the first quarter of 2025. The delay to the EU's 2040 GHG proposal further impacts presentation of an updated EU climate plan — known as a nationally determined contribution (NDC) — which will cover the timeframe up to 2035. The commission said several parties have already missed the 10 February deadline for submission of updated NDCs to UN climate body the UNFCCC. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Estonian climate ministry to push for EU ETS 2 repeal

24/03/25

Estonian climate ministry to push for EU ETS 2 repeal

London, 24 March (Argus) — Estonia's parliament has granted the country's climate ministry a mandate to push for the repeal or postponement of the EU's second emissions trading system (ETS 2) covering road transport and buildings, scheduled to launch in 2027. The Estonian parliament's EU affairs committee granted the ministry a mandate to begin consultations with the European Commission and EU member states on repealing the EU ETS 2 directive, because of the administrative burden and uncertainty posed by transposing the measure. If Estonia fails to garner sufficient support, it will join existing proposals by the Czech Republic and Poland to postpone the introduction of the new system for two years. This additional time could be used to find a way to limit the burden of imposing the measure, the committee said. These proposals would require a qualified majority of EU member states to pass. If not adopted, Estonia's climate ministry would instead start negotiations to postpone the launch of the system to 2028 or exclude road transport from its scope. The committee approved the mandate — which followed positions submitted by the government and subsequent amendments and opinions by the parliament's environment and economic affairs committees — "after a long and heated political debate", its chairman Peeter Tali said. The commission last year adopted a supply cap of 1.036bn carbon allowances in 2027 for the new system, which will cover upstream emissions from fuel combustion in buildings, road transport and small industry not covered by the existing EU ETS. For the first three years of operation, the system will have a price cap of €45/t of CO2 equivalent, adjusted for inflation, which if surpassed for a period of two months would trigger the release of 20mn allowances from its market stability reserve. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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