US could undermine global climate co-operation: Podesta

Spanish Market: Electricity, Emissions
22/05/25

The global climate community will have to pay close attention to the fact that the administration of US president Donald Trump "may do whatever they can to undermine global co-operation in the energy transition" in forums such as the G7 and the UN Cop 30 climate summit, former US government climate advisor John Podesta told the Financial Times Climate and Impact Summit Europe today.

"I hope people will resist them," he said, after pointing out that during Trump's first term, the US administration was "essentially… passive" on the climate on a global stage.

Podesta said that through Trump's attacks on former president Joe Biden's clean energy-supporting Inflation Reduction Act, the US has "handed a victory particularly to China". The act had become an energy transition model around the world, Podesta said, pointing to the EU's Green Industrial Deal. "The way to decarbonise and deal with climate change is through investment, innovation and technology… and what we have done is thrown in the towel and thrown in the hand", he said.

"There was I think, bi-partisan consensus in the US and consensus in Europe that we need to react to [China's domination in the green industry sector]," he added, saying that there is an economic security dimension with leaving China in a dominant position.

Clean energy deployment in the US is likely to stay robust in the short term, he said. Some Republican state governors have raised objections to the administration's rollback of clean energy support, but business investing in that area is keeping its collective head down, Podesta said, largely because "the administration has been engaged in a process of intimidation". Podesta said that there remains significant sub-national action in the US, but warned that the Trump administration is trying to undermine that too.

The administration has moved to "attack the underlying science" and the "human capital" in institutions such as US climate and weather agency the National Oceanic and Atmospheric Administration, Podesta said. "If you eliminate all the information sources maybe the problem goes away", he added.

The government has already pulled the US out of the Paris climate agreement and could withdraw from the UN Framework Convention on Climate Change (UNFCCC) — the UN's climate body. But there are legal issues around this, including whether the government may need a "supermajority" in the Senate, Podesta said.

"The law has not been a constraint on this government," Podesta added.

By Georgia Gratton, Caroline Varin & Victoria Hatherick

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20/06/25

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.

Pakistan loses EU GSP+ ethanol status

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.

Cop 28 outcome must be implemented in full: Cop 30 head

20/06/25

Cop 28 outcome must be implemented in full: Cop 30 head

London, 20 June (Argus) — The incoming UN Cop 30 summit president Andre Correa do Lago has set out his objectives for the conference in November, placing as a key priority the Cop 28 outcome of trebling renewables capacity and transitioning away from fossil fuels. Correa do Lago today said his plan is to drive "collective action" to tackle climate change, placing a strong emphasis on the global stocktake, the first of which was concluded at Cop 28 in 2023 . That outcome saw almost 200 countries commit to "transition away" from fossil fuels, as well as treble renewables capacity by 2030. The global stocktake, a five-yearly process, sets out progress made towards Paris climate agreement goals. Today's "Action Agenda must drive momentum towards the full implementation of the GST [global stocktake]", Correa do Lago said. The incoming Cop president is focusing on implementing agreements made at previous Cops, and ensuring that countries and all other stakeholders — such as sub-nationals and the private sector — work together to put the decisions into action. Correa do Lago's letter today repeated language from the Cop 28 outcome, and noted his other main themes for Cop 30, which will take place in Belem, in Brazil's Para state, on 10-21 November. As well as shifting energy, industry and transport from fossil fuel-powered to lower- or zero-carbon alternatives, he listed forests, oceans and biodiversity and agriculture and food as key topics. Further topics involved building resilience for cities, infrastructure and water and human and social development. A final priority was enablers and accelerators across the board, including for finance and technology. Correa do Lago said in May that Cop 30 should be a "pivot point" to action on climate change, and "a new era of putting into practice" what has been agreed at previous Cop summits. He has noted a difficult geopolitical situation , which could make talks more challenging. Brazil's Cop 30 presidency is also focused on climate finance at UN climate talks, currently underway in Bonn, Germany. These 'halfway point' discussions serve to cover substantial technical groundwork ahead of political talks at Cop summits each November. Brazil yesterday at Bonn presented a draft of a roadmap to scale up climate finance — from all sources — to $1.3 trillion/year by 2035. The roadmap will not be officially negotiated, although it was a key outcome from Cop 29 in 2024 and is likely to be finalised just ahead of Cop 30 this year. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

BMWE legt RED III Entwurf vor

19/06/25

BMWE legt RED III Entwurf vor

Hamburg, 19 June (Argus) — Das BMWE hat Verbänden am 19. Juni einen ersten Referentenentwurf zur Umsetzung der RED III vorgelegt. Diese sieht grundlegende Veränderungen zur Erfüllung der THG-Quote vor. Erste Preisindikationen steigen schlagartig. Um die auf EU-Ebene gültige dritte Fassung der Erneuerbare-Energien-Direktive (RED III) in deutsches Recht umzusetzen, hat das Bundesministerium für Wirtschaft und Energie (BMWE) einen Entwurf zur Anpassung des Bundes-Immissionsschutzgesetzes (BImSchG) vorgelegt. Unter anderem sieht der Entwurf vor, die Treibhausgasminderungsquote (THG-Quote) bis 2040 schrittweise auf 53 % zu erhöhen (siehe Grafik). Das bisherige Ziel war eine Quotenhöhe von 25,1 % im Jahr 2030. Auch der Pfad bis 2030 wurde leicht angepasst. Damit käme das Gesetz, wenn es in dieser Form umgesetzt wird, einer vielgeäußerten Forderung der Biokraftstoffindustrie nach, die sich für eine stärkere Quotenerhöhung eingesetzt hat. Infolgedessen melden erste Marktteilnehmer Angebote für Andere Zertifikate für das Verpflichtungsjahr 2026 in Höhe von 175 €/tCO2e. Für dieselben Zertifikate für 2025 werden 125 €/tCO2e geboten. Zusätzlich enthält der Entwurf einen Mechanismus, der im Falle einer Übererfüllung die Höhe der Quote im übernächsten Jahr erhöht. Ausschlaggebend ist dafür, ob die gesamte Quotenerfüllung in einem Jahr bereits ausreichen würde, um die Quotenhöhe des Übernächsten Jahres zu erfüllen. Darüber hinaus sieht der Entwurf vor, die Option zur zweifachen Anrechnung von als fortschrittlich geltenden Biokraftstoffen abzuschaffen und die Mindestquote zu erhöhen. Diese steigt dann bis 2030 auf 3 %. Zuvor lag das Ziel bei 2,6 %. Viele Marktteilnehmer haben gemutmaßt, dass die Doppelanrechnungsoption entfallen würde, um die benötigte Menge an Erfüllungsoptionen zu erhöhen. Auch welche Kraftstoffe zur Erfüllung der Quote genutzt werden können wird angepasst: So können keine Kraftstoffe auf Soja- oder Palmölbasis zur Erfüllung genutzt werden. Letzteres schließt auch Kraftstoffe aus Nebenprodukten der Palmölproduktion, allen voran Palmölmühlenabwasser (POME) ein. Dieses wurde in der Vergangenheit insbesondere genutzt, um die fortschrittliche Unterquote zu erfüllen, da es dank einer Sonderklausel trotz seiner Einstufung als fortschrittlich nur einfach zur Erfüllung der THG-Quote angerechnet werden konnte. Diese Regelung würde direkt ab Inkrafttreten der Gesetzesänderung wirksam werden. Die Anrechnungsgrenzen für futtermittel- und abfallbasierte Kraftstoffe werden ebenfalls angepasst: Während das Limit für futtermittelbasierte Produkte bis 2030 von 4,4 % der in Verkehr gebrachten Energiemenge auf 3 % reduziert wird, steigt das Limit für abfallbasierte Produkte wie Altspeiseöl (UCO) bis 2039 von 1,9 % auf 2,8 %. Zusätzlich wird eine Mindestquote für erneuerbare Kraftstoffe nicht-biogenen Urpsrungs (RFNBO) eingeführt. 2026 beträgt der energetische Mindestanteil 0,1 % und soll bis 2040 auf 12 % steigen. Zu den RFNBOs gehören unter anderem synthetische Kraftstoffe wie eFuels (PtL, Power-to-Liquid) und Grüner Wasserstoff. Der Entwurf erweitert den Geltungsbereich der THG-Quote außerdem auf den Luftverkehr. Bisher galt hier eine gesonderte Quote für erneuerbare Kraftstoffe. Darüber hinaus unterliegt nun auch der Seeverkehr der THG-Quote. In der Seefahrt genutzte Kraftstoffe, die im Straßenverkehr anrechenbar wären, können hierbei jedoch nicht für die Erfüllung genutzt werden. Damit soll vermieden werden, dass Unternehmen die Erfüllung ihrer Verpflichtung komplett vom Straßenverkehr auf die Seefahrt umwälzen. Der Entwurf sieht außerdem vor, dass erneuerbare Kraftstoffe nur noch angerechnet werden können, wenn Vor-Ort-Kontrollen der Produktionsstätten durch staatliche Kontrolleure ermöglicht werden. Dies soll das Betrugspotenzial bei der Anrechnung von Biokraftstoffen mindern. Der Entwurf liegt nun den Branchenverbänden vor. Ein Mitglied des Umweltausschusses erklärte am 4. Juni im Rahmen einer Podiumsdiskussion, dass der Entwurf nach Anpassung an eventuelle Verbandsvorschläge im Oktober dem Parlament zur Debatte vorgelegt werden soll und idealerweise zum 1. Januar 2026 in Kraft treten soll. Der Referentenentwurf sieht vor, dass die Änderungen an der THG-Quote mit Beginn des neuen Verpflichtungsjahres in Kraft treten. Dies soll Marktverwerfungen verhindern, für den Fall, dass die Gesetzesänderung innerhalb eines Verpflichtungsjahres in Kraft treten sollte. Von Svea Winter & Max Steinhau Entwicklung der THG-Quote bis 2040 Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

French Bugey nuclear cuts likely from 25 June: EdF

19/06/25

French Bugey nuclear cuts likely from 25 June: EdF

London, 19 June (Argus) — High temperatures on the River Rhone are "likely" to drive production cuts from nuclear plants along the river, especially Bugey, according to French utility EdF. The potential cuts will be reviewed on 24 June, and a specific publication will detail the cuts if they are confirmed, EdF said. France is about to see a combination of a heatwave and dry spell, with daily highs in Grenoble forecast to remain mostly above 30°C until the beginning of July. The combination of heat and a lack of rain in the Alps has increased the chance of hotter water and lower flows on the Rhone, which could have a knock-on effect on France's nuclear fleet. Eight of the country's 57 reactors discharge their cooling water directly into the river, and environmental regulations limit the temperature at which they can do this, meaning if the river's flow is low and temperatures high, the units can be forced to reduce output. Flows out of Lake Geneva — where the Rhone leaves Switzerland and enters France — have remained at 239-328 m³/s since 2 June. Earlier in the month this was within the 25th to 50th percentile of historical values, but is now slightly below the 25th percentile, as flows typically increase in June to peak at the end of the month and into July. The low outflows are reflective of low inflows, as the lake's level is regulated by the Seujet dam at the lake's exit to the Rhone, which keeps its level about 1m all year. The lake's level typically falls in the first quarter and rises in the second to a peak in June and July, and the level has been creeping up over June in line with the historical trend. The outflow's average temperature of 20.9°C on Wednesday was between the 75th and 95th percentile for the date. A convention between France and Switzerland guarantees that the flow of the Rhone upstream of Bugey, the first nuclear plant on the river, is to remain above 150 m³/s, with the potential for release of water from the Emosson reservoir in Switzerland to the Arve River to achieve this. In recent days, flows at Bugey — combining outflows from Lake Geneva and tributaries of the Rhone, which have brought more than 100 m³/s — have been well above this minimum. And thermal limits for Bugey are set at a maximum temperature downstream of the plant of 26°C and a maximum temperature difference between upstream and downstream of 5°C. If grid operator RTE determines that the plant is necessary to maintain supply, this maximum limit can increase to 27°C, but with only a 1°C temperature difference allowed. Only two of Bugey's four units discharge their cooling water directly into the Rhone, with the other two using cooling towers, which sharply reduce their thermal impact on the river, and so the extent to which the regulations affect them. If water flows were at their minimum of 150 m³/s, and at a temperature of 21°C upstream of the plant, this stream would have the capacity to carry 3.14GW of waste heat away from the plant before hitting the regulatory limit of 5°C of temperature difference and 26°C maximum temperature downstream. This is less than the roughly 3.8GW of waste heat generated by Bugey 2 and 3 operating at full power, including their thermal power of 5.6GW less their electrical power of 1.8GW. Bugey 4 and 5 contribute a small amount of extra waste heat downstream, as their cooling towers do not completely eliminate waste heat. Both units have had to stop at moments in the past two years because of heat-related constraints. In the last period when Bugey was constrained, in mid-August, flows leaving Lake Geneva were significantly hotter than now, roughly 24-26°C. At that point, output from Bugey 2 was reduced to zero, before a sharp fall in water temperature to roughly 20°C by 18 August allowed constraints to be lifted. But air temperatures in the region are forecast to remain elevated for the next two weeks, which will boost water temperatures over time. Daily highs in Sion, Switzerland, are seen at 3-4°C above the norm through to the beginning of July. Temperatures and flows at reactors further downstream which do not possess cooling towers — 2.6GW Saint Alban and 3.6GW Tricastin — are affected by other flows on tributaries to the Rhone, which cool the river down and increase its volume after passing Bugey. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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