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Brazil to walk tightrope in Cop 30 fossil fuel talks

  • Spanish Market: Biofuels, Crude oil, Electricity, Natural gas, Oil products
  • 20/05/25

Brazil is arguing that its developing country status allows it to consolidate its position as a major crude producer and is likely to lean on developed countries during much-awaited discussions on moving away from fossil fuels at the UN Cop 30 climate conference in November.

Attempts to reach an ambitious outcome on mitigation — cutting greenhouse gas emissions — and actions to move away from fossil fuels were quashed at Cop 29 in Baku last year, and all eyes are on Brazil to bridge divides on this issue.

Cop 30 president-designate Andre Correa do Lago has failed to address fossil fuels in his two letters outlining priorities for the summit, but members of the Cop 30 team have indicated the issue will be on the agenda.

With geopolitical tensions and energy security questions redirecting government priorities away from the energy transition, the outlook is more challenging than when Cop parties agreed the global stocktake (GST) conclusion on fossil fuels and energy in 2023.

But Brazil is well-placed to take the lead. It is a respected player in climate discussions and has one of the cleanest energy mix — 49pc of its energy and 89pc of its electricity comes from renewables. Its own mitigation efforts prioritize slashing deforestation, which accounts for the lion's share of Brazil's greenhouse gas (GHG) emissions.

Non-profit World Resources InstituteBrazil describes the emissions reduction target in Brazil's nationally determined contribution (NDC) — climate plan — as "reasonable to insufficient" and notes that energy emissions are expected to increase by 20pc in the decade to 2034. Its NDC avoids any concrete steps towards winding down crude.

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The government's view on fossil fuels is that Brazil's developing country status, the oil and gas industry's importance in its economy and comparatively low fossil fuel emissions justify pushing ahead with oil production.

Correa do Lago said earlier that Belem was picked as a venue for Cop 30 to show that Brazil is still a developing country, adding that any decision on oil and gas should be taken by Brazil's citizens. President Luiz Inacio Lula da Silva said that oil revenue will fund the energy transition.

It is a position that has earned Brazil accusations of hypocrisy from environmentalists at home and abroad, but which also places it as a possible model for other hydrocarbon-producer developing countries. Brazil's diplomatic tradition of pragmatically balancing seemingly opposing positions could serve it well here, said Gabriel Brasil, a senior analyst focused on climate at Control Risks, a consultancy. He does not see Brazil's attempt to balance climate leadership with continued oil production as hurting its standing among fellow parties or energy investors.

Civil society stakeholders hope pre-Cop meetings will help bring clarity on how Brazil might broach the fossil fuel debate. Indigenous groups, which are set to be given more space at Cop, are demanding an end to fossil fuel extraction in the environmentally sensitive Foz do Amazonas offshore basin. Meanwhile, Brazilian state-owned Petrobras moved one step closer to being authorized to begin offshore drilling there.

During meetings of the UN climate body — the UNFCCC — in Panama City this week, the Cop 30 presidency will present ideas for the summit "with a focus on the full implementation of the GST". But it has to wait for countries to update their NDCs to gauge what is achievable on mitigation. Only 20 have submitted new NDCs so far, with the deadline pushed back to September. Brazil's own NDC gives some clues. It welcomes the launch "of international work for the definition of schedules for transitioning away from fossil fuels in energy systems" and reiterates that developed countries should take the lead.

And a report commissioned by Brazil's oil chamber IBP and civil society organization ICS to be given to negotiators ranks Brazil as a "mover" in the transition away from oil and gas, ahead of "adapters" like India and Nigeria but behind "front-runners" Germany and the US. The research develops the idea of a country-based transition plan, using criteria such as energy security and institutional and social resilience, as well as oil and gas relevance.

2023 Brazil emissions sources

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12/06/25

Trump discusses possible Israel attack on Iran

Trump discusses possible Israel attack on Iran

Washington, 12 June (Argus) — US president Donald Trump today suggested that Israel is preparing a military strike against Iran, but added that he opposed such action as it could jeopardize his diplomatic efforts with Tehran. An Israeli attack on Iran may not be imminent "... but it looks like it's something that could very well happen," Trump told reporters today. Casual discussion of military conflict that would destabilize the Middle East is the latest twist in Trump's outreach to Tehran to strike a nuclear agreement outwardly very similar to one he terminated in 2018. The Trump administration in the past two days ordered non-essential US civilian and military personnel to evacuate from Iraq and Israel. The US in the past temporarily drew down its diplomatic presence in Iraq — most recently in early 2024 — in response to risks posed by pro-Iran militias based in Iraq. Israel and Iran exchanged missile and drone strikes in 2024. As long as the US and Iran are negotiating, "I don't want [Israel] going in because, I mean, that would blow it," Trump said. "Might help it actually but it also could blow it." US and Iranian negotiators are scheduled to meet on Sunday for another round of talks on the future of Tehran's nuclear program and possible relief of US sanctions. The key outstanding issue separating Washington and Tehran is Iran's ability to enrich uranium and, thus, retain a theoretical path to nuclear weapons. "Look, it's very simple, not complicated," Trump said today. "Iran cannot have a nuclear weapon. Other than that, I want them to be successful." A "pretty good" nuclear deal with Iran is within reach but "it's got to be better than pretty good though", Trump said today. As Trump's administration claimed progress in talks with Iran, US lawmakers critical of Iran, as well as Israel's prime minister Benjamin Netanyahu, have stepped up demands for a complete elimination of Tehran's nuclear program. Tehran insists it must retain the civilian component of its nuclear program. UN nuclear watchdog the IAEA declared Iran non-compliant with its non-proliferation obligations, a decision denounced by Tehran. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ireland keeps double counting for Pome biofuels


12/06/25
12/06/25

Ireland keeps double counting for Pome biofuels

London, 12 June (Argus) — The Irish transport ministry has signed an amended regulation that will continue to allow for biofuels made from palm oil mill effluent (Pome) oil to be counted twice towards domestic mandates, but prevent the granting of additional renewable fuel certificates to biofuels made from the waste feedstock from 1 July. Irish biofuels legislation allows for two renewable fuel certificates to be generated per megajoule for fuels made from feedstocks listed in Annex IX of the EU's Renewable Energy Directive (RED), which includes Pome oil. This is known as double counting. A second piece of legislation, the National Oil Reserves Agency Act 2007 (Additional Certificates for Renewable Transport Fuel) Regulations, allows for extra certificates to be generated for fuels from Annex IX feedstocks on top of double counting. The amended regulation will prevent the additional generation of 0.5 certificates per megajoule of hydrotreated vegetable oil, 0.4 certificates per megajoule of fuel supplied into the aviation sector and 0.4 certificates for megajoule of fuel supplied into the marine sector, if produced from Pome oil. Biofuels produced from other feedstocks listed in Annex IX will still be eligible for this. The National Oil Reserves Agency, which administers Ireland's biofuels mandate, reviewed Pome oil consumption data last year and recommended excluding Pome oil-based fuels from double counting, along with an exclusion from additional certificate generation. It also suggested implementing a Pome oil cap for the mandate, but acknowledged administrative barriers. Ireland was one of four member states that last year approached the European Commission to ask for its support in the analysis of Pome oil-based biofuel usage. The commission responded by saying it would be launching a working group with member states on sustainability and fraud in the lead-up to states transposing the recast RED III. By Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU ethanol market monitors possible reclassification


12/06/25
12/06/25

EU ethanol market monitors possible reclassification

London, 12 June (Argus) — The European ethanol market awaits the final verdict of the European Chemicals Agency (ECHA), the registry of classification and labelling (CLH), on the potential classification of ethanol as a carcinogenic, mutagenic, or toxic for reproduction (CMR) substance. The decision is expected in the second half of this year. The classification would ban the use of ethanol in certain cosmetic applications. Some market participants said that it could mean that additional protective measures would be required when handling fuel grade ethanol, such as operators having to wear protective clothing and monitoring their exposure more closely. European renewable ethanol association ePure said that the decision "would have many undesirable and disproportionate effects in multiple sectors and industries". Greek authorities submitted a proposal to the ECHA asking it to classify ethanol as a CMR substance back in July 2020. This classification would suggest potential toxicity based on limited evidence from human or animal studies. The dossier submitted by the Greek authorities argues that ethanol causes developmental harm, in regard to prenatal alcohol exposure, and potential effects via breastmilk. Supporting data all derives from hazards caused by oral consumption. Industrial-grade ethanol, often referred to as denatured alcohol, serves as a key ingredient in a wide range of products, including cosmetics, disinfectants, pharmaceuticals and paints. Consumption of the grade increased during the Covid-19 pandemic, when many manufactures turned to ethanol to tackle disinfectant supply shortages. In contrast, fuel-grade ethanol, typically referred to as undenatured ethanol, must meet EN (European Standard) specifications and adhere to sustainability standards set by certification bodies like the International Sustainability and Carbon Certification (ISCC) before being blended into gasoline. According to ePURE data, 6.4bn l of ethanol was produced in Europe in 2023, with 5.5bn l or just under 86pc being for fuel, while only 7.6pc was for industrial use and 6.5pc for beverages. In an open letter sent to the European Commission on 8 November 2024, the International Association for Soaps, Detergents and Maintenance Products (AISE) requested for an "urgent intervention" on this potential reclassification. In the letter they said that this would impact both the general public and professional users, like in hospitals, where they said there is "no suitable alternative" to ethanol-based sanitisers. Some have suggested that ethanol producers impacted by the ban might turn to the fuel ethanol market. But, the increased supply this re-classification could bring to the fuel market, depends on whether producers have or could obtain ISCC or equivalent accreditation. By Toby Shay and Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Spanish May industrial gas use hits multi-year low


12/06/25
12/06/25

Spanish May industrial gas use hits multi-year low

London, 12 June (Argus) — Spanish industrial gas burn last month was higher than in April but the lowest for May in at least nine years, the latest data from grid operator Enagas show. Industrial gas demand of 449 GWh/d in May edged up from 441 GWh/d in April, but remained lower than the 465 GWh/d a year earlier and was the weakest for May since at least 2016, when Enagas' public dataset begins. Before last month, the lowest industrial demand for May over the past nine years occurred in 2024, when Mibgas day-ahead reference prices averaged €32/MWh. Spanish industries last month also consumed less gas than in May 2022, when day-ahead reference prices on the Mibgas exchange averaged €77/MWh, more than double the Argus -assessed €34/MWh day-ahead average last month. Spanish industrial demand has remained lower on the year every month so far in 2025, largely because of limited gas use by refineries. Spanish refiners last month consumed 84 GWh/d, down from 100 GWh/d in May 2024, but the sector still accounted for the largest single portion of industrial demand. There was also a significant decline in demand from the food sector, which decreased by 13pc on the year, combined heat and power (CHP) plants (11pc drop) and the paper sector, which fell by 7pc on the year. Gas burn by CHPs last month held lower on the year, despite overall demand for Spanish power generation holding more or less stable and Spanish renewables and nuclear plants contributing less to the mix. That change may at least partly relate to stronger competition from combined-cycle gas turbines, which generated 4.4GW last month, 63pc higher than a year earlier. The metal, chemical and construction sectors all used marginally more gas on the year, but that change only partially offset the decline in other sectors ( see table ). By Iris Petrillo Spanish gas demand by sector GWh/d May-25 May-24 Refineries 84 98 Chemical and pharma 61 59 Construction 61 60 CHPs 51 58 Food 44 50 Other 36 39 Metals 36 35 Paper 31 33 Services 29 29 Textiles 5 5 Enagas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EPA readies new biofuel blend mandate proposal


12/06/25
12/06/25

EPA readies new biofuel blend mandate proposal

New York, 12 June (Argus) — President Donald Trump's administration is close to releasing two regulations informing oil refiners how much biofuel they must blend into the conventional fuel supply. The two rules — proposed biofuel blend mandates for at least 2026 and most likely for 2027 as well as a separate final rule cutting cellulosic fuel mandates for last year — exited White House review on Wednesday, the last step before major regulations can be released. Previously scheduled meetings as part of the process appear to have been cancelled, another signal that the rules' release is imminent. The Environmental Protection Agency (EPA) has said it wants to get the frequently delayed Renewable Fuel Standard program back on its statutory timeline, which would require volumes for 2027 to be finalized before November this year. Any proposal will have to go through the typical public comment process and could be changed. A coalition of biofuel-producing groups and feedstock suppliers, including the American Petroleum Institute, has pushed EPA to set a biomass-based diesel mandate of 5.25bn USG for 2026, hoping that a record-high target will support biorefineries that have struggled this year. Many plants have idled or run less recently, as uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and tariffs that up feedstock costs all hurt margins. EPA administrator Lee Zeldin also told a House subcommittee last month the agency wanted "to get caught up as quickly as we can" on a backlog of small refiner requests for program exemptions. Courts took issue with EPA's exemption policy during Trump's first term and again during President Joe Biden's tenure, leaving officials now with dozens of waiver requests covering multiple compliance years still pending. It is unclear whether the rule will provide clarity on EPA's plans for program waivers — including whether the agency will up obligations on other parties to make up for exempt small refiners — but biofuel groups have worried that widespread exemptions would curb demand for their products. The price of Renewable Identification Number (RIN) credits used for program compliance have been volatile this year on rumors about these exemptions, which EPA has called market manipulation. RIN trading picked up and prices rose on the news as Thursday's session began. Bids and offers for 2025 ethanol D6 RINs, the most prevalent type currently trading, began the day at 96¢/RIN and 98¢/RIN, respectively. Deals were struck shortly after at 98¢/RIN and 99¢/RIN, with seller interest at one point reaching 100¢/RIN — well above a 95.5¢/RIN settle on Wednesday. Biomass-based diesel D4 RINs with concurrent vintage followed the same path with sellers holding ground as high as 107¢/RIN. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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