Virginia to rejoin RGGI in July

Spanish Market: Electricity, Emissions
31/03/26

Virginia plans to return to the Regional Greenhouse Gas Initiative (RGGI) in July, after the state Department of Environmental Quality (DEQ) finalizes new regulations in May, the agency told Argus.

"We plan to rejoin RGGI effective July 1, 2026, and participate in the auctions in September and December," DEQ said.

The agency began the process to return to the northeast US power plant CO2 cap-and-trade program in February after governor Abigail Spanberger (D) a budget bill that directed DEQ to begin work on new regulations.

The agency has until 21 May to finalize new rules to return to RGGI.

"Given the short deadline and specific direction in HB29, we will adopt a final regulation without publishing a draft regulation for comment," DEQ said.

In addition, the agency has been working with RGGI member states to iron out the finer details of Virginia's return to the program, such as its allowance allocation. Calling its discussions with member states "positive", DEQ said that Virginia's allocation "will be consistent with the prior regulation" when the state first joined RGGI in 2021.

Virginia's power plant emissions and allowance allocation were largely even during its participation in RGGI from 2021-23, making its effect on overall fundamentals in the allowance market negligible, according to William Shobe, professor emeritus of public policy at the University of Virginia.

Virginia left RGGI by the end of 2023 at the direction of Spanberger's predecessor, former governor Glenn Youngkin (R), who said the state's participation had led to higher energy costs. Environmental groups sued the Youngkin administration for unilaterally exiting RGGI without approval from the legislature, an argument that a lower court agreed with. Youngkin's administration had been appealing the lower court ruling last year, but attorney general Jay Jones (D), who took office in January, withdrew from the lawsuit earlier in March.

Virginia officials have moved fast to rejoin RGGI since Spanberger — who promised to resume participation in the program during her campaign last year — took office in January. In addition to the budget legislation, state lawmakers also passed two separate bills, HB 397 and SB 802, that require Virginia to rejoin RGGI. Spanberger has until 13 April to sign those bills.

The state has the largest data center market globally, accounting for more than 35pc of the world's hyperscale data centers, according to the Virginia Economic Development Partnership. As a result, it presents a considerable source of demand in the RGGI market, though that demand could be tempered depending on the state's allowance allocation.

Allowance prices have soared in recent weeks since the program's first auction of 2025 cleared high enough to completely drain the year's cost containment reserve (CCR), which held an additional 7.85mn allowances that were released into the market in a bid to mitigate rising prices.

Argus assessed prompt-month and December 2026 allowances at $27.98/short ton (st) and $28.55/st, respectively, on Monday. That assessment is about 53-57pc higher compared with the $18.22/st CCR trigger price for this year.

By Ida Balakrishna

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07/05/26

US court finds 'section 122' tariffs unlawful

Washington, 7 May (Argus) — A federal trade court ruled on Thursday that 10pc tariffs that President Donald Trump imposed in February on a vast number of imported products were unlawful under a 1974 law he used as the basis for the duties. Trump had imposed the "section 122" tariffs on imports on 20 February as a de facto replacement of emergency tariffs the US Supreme Court had thrown out the same day. Trump said he was imposing the 10pc tariffs to address a deficit in the "balance of payments" flowing into the US, using authorities that could remain in place for 150 days, until 24 July. Trump exempted energy, critical minerals, fertilizers and some agricultural imports from new import taxes. But the US Court of International Trade, in a 2-1 ruling on Thursday, found the latest tariffs were "invalid as contrary to law". The court said nowhere in the proclamation imposing the tariffs had Trump identified a "balance-of-payments deficit" under the meaning of the 1974 trade law. The administration had used a mechanism of finding deficits that unless every individual sub-account was balanced, the "president would always be able to identify a balance-of-payment deficit", the court said. The court permanently blocked the US from collecting the section 122 tariffs from state of Washington and two small private importers that had filed the case, and it also required the US to pay refunds and interest. But the court said California and other states that were part of the lawsuit had not shown legal "standing" to obtain the same relief. The court's decision, if upheld, could open the door to other states and plaintiffs that have paid the section 122 tariffs to pursue their own claims to obtain tariff refunds. The White House did not immediately respond to a request for comment. The administration is still in the process of refunding $166bn in emergency tariffs the Supreme Court struck down. The administration last month launched a system to manage tariff refunds. The first refunds will be paid out as early as 12 May, federal customs officials said earlier this week. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Australia’s NSW tables bill to fast-track renewables

07/05/26

Australia’s NSW tables bill to fast-track renewables

Singapore, 7 May (Argus) — Australia's New South Wales (NSW) state has proposed rules to speed up key renewable energy projects, to meet power demand as coal generation falls. Under legislation tabled on 6 May, the state energy minister would be able to identify high-priority projects to move faster through the planning pipeline. The NSW government wants to ensure reliable and affordable energy for heavy industry such as UK-Australian producer Rio Tinto's Tomago aluminium smelter, the largest in Australia, it said. No environmental and community assessments will be removed, the government added. Eligible projects include those for renewable power generation, clean energy storage, and power transmission. The state parliament has received the proposed legislation but has not yet voted to pass it. The government is also planning reforms for how projects are sent to the Independent Planning Commission, which reviews complaints. Currently the commission reviews projects that have garnered 50 or more public objections. Renewables made up 39.6pc of power generation in NSW, Australia's most populous state, in 2025, according to data tracker Open Electricity. NSW and Australia's largest coal power station, Eraring, delayed its retirement earlier this year in part because there was insufficient new generation capacity. Australia already has a national renewable energy priority list, which allows regulators to attend to key projects faster, but does not remove any assessment steps. By Liang Lei Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Morocco and Norway sign Paris Article 6.2 agreement

06/05/26

Morocco and Norway sign Paris Article 6.2 agreement

Berlin, 6 May (Argus) — Morocco and Norway on Tuesday signed a bilateral agreement on co-operating under Article 6.2 of the Paris Agreement, through which Norway will provide financial support to greenhouse gas (GHG) emissions reductions in Morocco's power sector. The activities will generate so-called internationally transferred mitigation outcomes (Itmos) under Article 6.2, which will be counted against Norway's nationally determined contribution (NDC) — climate plan — under the Paris deal, and after a few years also Morocco's, Norway's climate and environment ministry said. Under the agreement, Norway will help finance about 2GW of renewable power capacity, including battery systems, in 2026-36 under a generation-based incentive programme, Morocco's ministry of energy transition and sustainable development said. This provides projects with performance-based payments for every energy unit generated, as opposed to covering initial capital costs. The programme focuses on relatively complex or less profitable renewable energy projects requiring additional financial support through carbon market mechanisms. This "additionality" is a key criterion under Article 6. The initiative is expected to reduce up to 10mn t of CO2 equivalent (CO2e) by 2030, while also providing other benefits such as promoting technology transfer and creating job opportunities. Norway has signed seven other Article 6.2 co-operation agreements, including one with Switzerland on cross-border transport and storage of carbon. Morocco has also signed bilateral agreements under Article 6.2 with Switzerland and Singapore. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

EU could use Pacm credits as 'safety reserve': Study

05/05/26

EU could use Pacm credits as 'safety reserve': Study

Berlin, 5 May (Argus) — The EU should consider treating some of the international carbon credits that it can use to meet up to 5pc of its 2040 climate target as a "safety reserve" to offset potentially damaging developments in its land-use sector, according to a paper published by environmental research institute Oeko-Institut this week. Using international credits as a safety reserve would mean raising the EU's domestic reduction target beyond 85pc, the Oeko-Institut researchers emphasised in their recommendations to the EU. The bloc has set a target to reduce its emissions by 90pc compared with 1990 levels by 2040. The EU should also not allow the direct use of carbon credits by companies covered by the bloc's emissions trading system (ETS), they said, with credit procurement preferably carried out by a central purchasing facility. The UN-controlled Paris Agreement Crediting Mechanism (Pacm) under article 6.4 of the Paris Agreement should be used as a "minimum" integrity benchmark for purchased credits, combined with additional criteria and safeguards, the researchers said. And the EU should clarify the maximum amount of carbon credits that can be used, bearing in mind that "high-quality carbon credits will not be available at low cost", while the bloc should also engage in strategic partnerships with project host countries at an "early stage", the study said. The researchers recommended that the EU count only around 50pc of the credits' emissions savings towards its own nationally determined contribution (NDC), or climate plan, under the Paris Agreement. At least 30pc should be kept for the project host countries, while 10pc should be put into the UN's climate adaptation fund — compared with the 5pc obligation under article 6.4 — and 10pc cancelled to contribute to global emissions reductions, compared with the 2pc mandatory cancellation under article 6.4. There could be variations between host countries, with least-developed countries receiving a higher share of credits, or between types of emissions-cutting activities, the researchers said. The EU should ensure that third-party auditors are not selected or paid by project developers, they said. The researchers also warned about the "accounting gaps" in the Paris Agreement arising from single-year NDC targets compared with carbon-market approaches commonly implemented over multi-year periods. Countries with single-year targets could resort to "averaging" the number of carbon credits used or sold over an NDC period for the target year, potentially leading to double counting of emissions reductions and an increase in global emissions, even when carbon credits represent additional emission reductions or removals. The EU should only engage with countries that also use multi-year approaches, the Oeko-Institut recommended. And the bloc should implement a "like-for-like" approach for any use of carbon credits subject to reversal risks, which could be used to compensate for carbon emissions or a decline in removals from the land-use sector. The EU should also not count payments for the credits as climate finance under the UN's new collective quantified goal target of providing "at least" $300bn/yr in climate finance for developing countries by 2035, the researchers said. If the EU uses ambitious values for sharing emissions cut benefits, this could lead to project developers becoming unwilling to sell carbon credits with less ambitious benefit-sharing arrangements, the researchers warned. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

EU parliament committee opposes CBAM suspension clause

05/05/26

EU parliament committee opposes CBAM suspension clause

Brussels, 5 May (Argus) — The European Parliament's environment committee opposes amending the Carbon Border Adjustment Mechanism (CBAM) with a new article 27a that allows for temporary suspension for certain goods, notably fertilizers. During its first formal debate, committee members broadly backed deleting the proposed article 27a. "Keeping that article would effectively mean game over for low-carbon industry investments in Europe," parliament's draftsman Mohammed Chahim said. If the European Commission believes that CBAM's scope should be adjusted, it should use an urgent legislative procedure, he said. Dutch centre-left member of the parliament (MEP) Chahim has presented a legal report critical of CBAM suspension. Polish MEP Adam Jarubas, speaking for parliament's largest centre-right EPP group, said it also opposes article 27a. But he said that farmers' concerns must be addressed, adding that the EPP will make proposals to support the sector. Parliament's draftsman for CBAM's proposed export support scheme, Pascal Canfin, also said farmers should be protected. He supports covering agricultural products such as grain and wheat, rather than bringing farmers themselves under the EU emissions trading system (ETS). Canfin called for export reimbursement before 2029 and for compensation to be limited to the share of production that is exported. But the French liberal MEP also wants CBAM extended to downstream operators and transformed products, notably in steel. "We support the deletion of article 27a," Austrian Green MEP Lena Schilling said, adding that her group will also seek to remove references to international carbon credits from the CBAM revision. "EU companies cannot replace emissions allowances with such credits. CBAM has to mirror this logic," she said. Like other groups, the Greens will propose amendments to extend CBAM to downstream products. Schilling said that around 130 additional combined nomenclature (CN) codes could be added, including for iron and steel products. More than 100 associations and companies representing the steel and aluminium industries separately urged the parliament and European Council in a joint statement this week to extend CBAM to downstream steel and aluminium-intensive products, arguing that downstream sectors in these industries face increasing competition from imports that are not covered by CBAM, creating imbalances in the market. German EPP MEP Peter Liese also supports extending CBAM to more products, but said including the entire chemical sector would be too complex. He also questioned keeping hydrogen under CBAM given the lack of imports. Liese strongly opposes article 27a. Some far-right and conservative MEPs backed suspension for fertilizers via article 27a. Alternative for Germany's Anja Arndt called for both the EU ETS and CBAM to be abolished, criticising the expansion of EU climate policy. In its EU fertilizer plan expected on 19 May, the commission should at a minimum propose CBAM suspension and long-term measures to offset farmers' costs, farm lobby Copa-Cogeca said. The group also called for clarity on the redistribution of CBAM revenues. It estimates that CBAM could cost EU farmers €820mn in 2026, rising to €3.4bn by 2034, with around 30pc of nitrogen fertilizer imported. The environment committee is set to vote on the issue on 6 July, ahead of a plenary vote in September, enabling talks with EU states on a final legal text. EU member states agreed their position in March , allowing article 27a to apply for at least one full calendar year and no more than two. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Virginia to rejoin RGGI in July

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