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European aviation emissions to surpass pre-Covid levels

  • Spanish Market: Biofuels, Emissions, Oil products
  • 29/04/25

Carbon emissions from the European aviation industry are on course to surpass 2019 levels this year, according to a new study by clean energy lobby group Transport & Environment (T&E).

Flights departing from European airports — in the EU, Norway, Iceland, Switzerland and the UK — emitted around 187.6mn t of CO2 in 2024, 8pc higher than in 2023 and just 2pc short of 2019, the year before the onset of the Covid-19 pandemic, the study said.

Meanwhile, 8.4mn flights departed from airports in Europe last year, which was 4pc lower than in 2019.

T&E forecasts that aviation emissions will rise to 195.2mn t this year, 4pc higher than 2019 levels, even after taking into account a 2pc mandate on sustainable aviation fuel (SAF) use. European flight numbers are expected to surpass pre-pandemic levels for the first time this year.

Long-haul flights emitted the most CO2 last year, with London to New York flights accounting for 1.4mn t, London to Dubai 1.2mn t and London to Singapore 1.1mn t.

T&E criticised carbon pricing in Europe, pointing out that airlines do not have to pay for carbon emissions on intercontinental flights, according to EU, Swiss and UK Emissions Trading Systems (ETS), as their carbon allowances only apply to flights within Europe. This means that airlines operating within these carbon markets do not have to pay for emissions on the biggest-polluting routes.

The group claims that up to 70pc of carbon emissions fell outside of these carbon markets last year and were therefore exempt.

T&E is pushing the EU and UK to expand their ETS, saying they could have generated an extra €7.5bn in 2024. The EU will review its ETS next year.


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19/05/25

Phillips 66 vote could change company's course

Phillips 66 vote could change company's course

Houston, 19 May (Argus) — Just four of Phillips 66's 14 board members are up for election at its annual meeting this week, but the outcome could shape the future direction of the US refiner and midstream operator. Activist hedge fund Elliott Investment Management has named four of its own candidates for the vote which will come to a conclusion on 21 May, part of its multi-year effort to push the company to sell assets and focus on core businesses. Elliott, which has amassed a $2.5bn stake in Phillips 66, contends that the company has consistently trailed its industry peers and needs to streamline operations, including spinning off or selling its midstream business, selling its stake in Chevron Phillips Chemical (CPChem), and possibly other assets. Phillips 66 has told shareholders that Elliot is pushing "an aggressive short-term agenda" that would cause disruption, slow momentum and jeopardize shareholders' investments. It says the Phillips 66 board and management team are implementing a "transformative strategy" that has delivered results, expanded its NGL business, improved its refining cost structure and continues to position CPChem as the lowest cost producer of ethylene. "We don't act out of fear or short-term trends," Phillips 66 chief executive office Mark Lashier said in a first quarter earnings call last month. "We act on what we believe will create the most long-term value for our shareholders each and every time." Turning up the heat Elliott alleges that Phillips 66 suffers from "continuous poor corporate governance" and "disingenuous shareholder engagement." Elliott said its proposals could push Phillips 66 stock to more than $200 per share. The stock was trading near $124 per share Monday morning. Elliott's campaign has grown more aggressive in the months leading up to this week's shareholder meeting. It includes launching a website dubbed "Streamline 66" with slide shows, podcasts, biographies of its dissident board nominees, press releases and information on how shareholders can vote by mail, phone or online. Elliott nominees include Brian Coffman, former chief executive at Motiva; Sigmund Cornelius, former chief financial officer of ConocoPhillips; Michael Heim, former chief operating officer of Targa Resources; and Stacy Nieuwoudt, former energy analyst at Citadel. Three top shareholder advisory firms [are backing the Elliott nominees](https://direct.argusmedia.com/newsandanalysis/article/2687988) in the proxy fight. Institutional Shareholder Services (ISS) and Egan-Jones are recommending all four of Elliot's dissident nominees, while Glass Lewis is backing three of the four — and supporting Phillips 66 nominee Nigel Hearne, a 35-year veteran of Chevron, because his experience "is more critical at this juncture". Phillips 66 pushback Phillips 66 has made some adjustments since Elliot started to agitate for change. In February 2024 it appointed former Motiva and Cenovus downstream executive Robert Pease to the board to address Elliott's concerns about a shift in focus from refining to midstream. And this year it agreed to sell off [some of its European retail business](https://direct.argusmedia.com/newsandanalysis/article/2688808), and expects about $1.6bn in pre-tax cash proceeds from the sale that it will use toward debt reduction and shareholder returns. But for the other Elliott recommendations to divest from midstream and sell its 50pc share of CPChem, Phillips 66 said the board has evaluated them and "came to the conclusion that neither action is in the best interest of long-term shareholders at this time". In additon to Hearne, Phillips 66's slate for the open board seats includes putting up Pease and current director John Lowe for re-election and nominating Howard Ungerleider, a former Dow president and chief financial officer. Current board members Gary Adams and Denise Ramos will not stand for re-election. Analysts with US bank TD Cowen said they "suspect Elliott could get some or all of its board members elected" and there could be larger board turnover next year if shareholders approve an Elliott proposal to require each director to submit a resignation to the board every year. The most likely outcome of an Elliott win is that the board "more deeply examines a midstream restructuring", TD Cowen said. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU, UK to ‘work towards’ linking carbon markets


19/05/25
19/05/25

EU, UK to ‘work towards’ linking carbon markets

London, 19 May (Argus) — The EU and UK agreed to work towards linking their respective emissions trading systems (ETS), as part of their common understanding agreement concluded at a summit in London today. "The European Commission and the United Kingdom share the view that a functioning link between carbon markets would address many of the issues raised in respect of trade and a level playing field," the agreement states. A linking agreement should exempt both jurisdictions from their respective carbon border adjustment mechanisms, according to the common understanding, and the linked systems should cover power and industrial heat generation, and domestic and international maritime and aviation emissions. The statement specifically states that any link "should not constrain the European Union and the United Kingdom from pursuing higher environmental ambition". It also underlines that the UK ETS's supply cap and its emissions reduction pathway are "guided by" the country's Climate Change Act and nationally determined contributions to the Paris climate agreement, and that these should be "at least as ambitious" as the EU's. The UK has legally binding targets to cut its greenhouse gas (GHG) emissions by at least 68pc by 2030 and 81pc by 2035, both compared with 1990 levels. The EU aims to cut its net GHG emissions by 55pc by 2030, and is yet to set a 2035 target. Both jurisdictions are targeting net zero emissions by 2050, while they share the "same interests" in addressing climate change, commission president Ursula von der Leyen said today. Linking the systems would "save British businesses £800mn in EU carbon taxes", UK prime minister Keir Starmer said today, without specifying a timeframe for the savings. A study commissioned by a range of utilities and published last week found that linking the two systems would save up to €1.2bn on lower hedging costs resulting from improved market liquidity and lower bid-offer spreads. Today's agreement provides no timeline for linking the systems. The process to negotiate and link the Swiss ETS to the EU's scheme took almost 10 years. Alongside plans to work towards linking the EU and UK ETS, the jurisdictions also alluded in the agreement to continuing "technical regulatory exchanges" on energy technologies including hydrogen, carbon capture and storage and biomethane. And they will "explore in detail the necessary parameters" for the UK's potential participation in the EU's internal power market. By Victoria Hatherick and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

German gasoil demand down on rising prices


19/05/25
19/05/25

German gasoil demand down on rising prices

Hamburg, 19 May (Argus) — Traders in Germany bought significantly less heating oil in the week to May 18, after many stocked up when prices fell in the previous week. Rising prices have dampened demand, and heating oil inventories are at their highest May level in four years. Traded spot volumes for heating oil reported to Argus fell by almost 45pc on the week as inland prices for heating oil and diesel rose notably in the week for the first time since the end of March. Spot sales in the week ending May 11 has resulted in national average heating oil inventories above 50pc, according to Argus MDX data. The last time German inventories were more than half full at this time of year was in May 2021. Given the unusually high inventories and rising prices, many heating oil buyers are waiting before becoming active again. Diesel demand also fell, with traded spot volumes reported to Argus down by 23pc in the week ending May 18. But industrial end-users' inventories are at their lowest May level in five years, according to Argus MDX data. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian carbon lobby urges government program reform


19/05/25
19/05/25

Australian carbon lobby urges government program reform

Sydney, 19 May (Argus) — Australia's lobby group Carbon Market Institute (CMI) urged the federal government to reform its Climate Active voluntary program, after utility Energy Australia admitted to flaws in its carbon offsetting strategy in a key legal case. The CMI said the Australian government must push reforms to the Climate Active program, and that carbon credits should not substitute decarbonisation efforts. Most of the voluntary demand for Australian Carbon Credit Units (ACCUs) comes from the federal government-backed Climate Active , which awards certification to businesses that measure, reduce and offset their carbon emissions to achieve carbon neutrality. "Offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use," Energy Australia said on 19 May. The utility admitted that carbon offsetting is not the best way to help customers reduce their emissions, as a legal action launched by advocacy organisation Parents for Climate in the Federal Court of Australia in 2023 reached its conclusion. The two parties have settled, with the utility saying it has now shifted its focus to direct emissions reductions. Energy Australia in 2016 launched the ‘Go Neutral' carbon offset product, which is certified by Climate Active and provided residential customers with a way to offset emissions generated by their electricity or gas consumption. But the utility admitted their electricity or gas use was still sourced predominantly from fossil fuels. It withdrew the ‘Go Neutral' product from the market in July last year and is phasing it out for existing customers during 2025. The government has been delaying key decisions on the future of the Climate Active voluntary program , including whether to change the existing list of eligible international units or setting a minimum percentage use of ACCUs. There are currently 528 active certified brands under the Climate Active program, down from almost 590 in the end of 2024. The number of brands that stopped using the certification increased to 240, from around 180 over that same period. By susannah Cornford Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US House panel votes down Republican megabill


16/05/25
16/05/25

US House panel votes down Republican megabill

Washington, 16 May (Argus) — A key committee in the US House of Representatives voted today to reject a massive budget bill backed by President Donald Trump, as far-right conservatives demanded deeper cuts to clean energy tax credits and social spending programs. The House Budget Committee failed to pass the budget reconciliation bill in a 16-21 vote, with four House Freedom Caucus members — Ralph Norman (R-South Carolina), Chip Roy (R-Texas), Josh Brecheen (R-Oklahoma) and Andrew Clyde (R-Georgia) — voting no alongside Democrats. A fifth Republican voted no for procedural reasons. The failed vote will force Republicans to consider major changes to the bill before it comes up for a vote on the House floor as early as next week. Republican holdouts say the bill would fall short of their party's promises to cut the deficit, particularly because it would front-load increased spending and back-load cuts. The bill is set to add $3.3 trillion to the deficit, or $5.2 trillion if temporary provisions were permanent, according to estimates from the nonpartisan Committee for a Responsible Federal Budget. Some critics of the bill said the proposed cut of $560bn in clean energy tax credits is not enough, because the bill would retain some tax credits for new wind and solar projects. "A lot of these credits have been in existence for 30 or 40 years, and you talk about giveaways, we want to help those who really need help," Norman said ahead of his no vote. "That's the heart of this. Sadly, I'm a no until we get this ironed out." Negotiations will fall to House speaker Mike Johnson (R-Louisiana), who can only lose three votes when the bill comes up for a vote by the full House. But stripping away more of the energy tax credits enacted in the Inflation Reduction Act could end up costing Johnson votes among moderates. More than a dozen Republicans on 14 May asked to pare back newly proposed restrictions on the remaining clean energy tax credits. Ahead of the failed vote, Trump had pushed Republicans to support what he calls the "Big Beautiful Bill". In a social media post, he said "Republicans MUST UNITE" in support of the bill and said the party did not need "GRANDSTANDERS". The failed vote has parallels to the struggles that Democrats had in 2021 before the implosion of their push to pass their sprawling "Build Back Better" bill, which was later revived as the Inflation Reduction Act. Republicans say they will work over the weekend on a compromise. The House Budget Committee has scheduled another hearing at 10pm on 18 May to attempt to vote again on the budget package, but any changes to the measure would occur later, through an amendment released before the bill comes up for a vote on the House floor. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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