EU committee to vote on car emissions compromise

Spanish Market: Biofuels, Emissions, Hydrogen, Metals
23/10/26

The European Parliament's environment committee is expected to vote on 4 November on amendments to EU car CO2 standards that would allow some new internal combustion engine (ICE) cars to remain on sale after 2035 and create an incentive for carmakers to use EU-produced low-carbon steel.

The parliamentary compromise would require carmakers to cut average tailpipe CO2 emissions from new cars by 87.5pc from 2021 levels by 2035. The European Commission has proposed a 90pc reduction, compared with the 100pc target under existing EU legislation.

The compromise would allow qualifying EU-produced low-carbon steel to contribute up to 7.5 percentage points towards compliance with the CO2 standards.

"Climate ambition must be a driver of technological progress rather than a barrier," centre-right EPP automotive industry spokesperson Massimiliano Salini said, pointing to a "broad" centrist majority supporting technological neutrality.

Salini was speaking after parliament's energy committee strongly backed the compromise on 22 October. Members from the EPP, liberal Renew and centre-left S&D voted in favour, while the Greens, conservative ECR and far-right Patriots opposed it, although for different reasons.

Greens co-president Terry Reintke described the weaker CO2 limits for cars as a "gift" to the Chinese automotive industry and said they would further dilute the Commission's already weakened proposal.

German EPP lawmaker Peter Liese said a separate Franco-German position agreed last week "did not provide sufficient incentives to use climate-friendly steel in cars".

Germany and France also agreed to support a new category of zero-emission vehicles using renewable fuels of non-biological origin (RFNBOs), sustainable EU-produced biofuels and biogas made from advanced feedstocks, waste and residues listed in parts A and B of Annex IX.

The two countries called for "super credits" from 2027 for battery electric vehicles made in Europe, with an additional multiplier for vehicles using European low-carbon steel and aluminium.

By Dafydd ab Iago

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27/10/26

European cobalt drops on demand concerns

London, 27 October (Argus) — European cobalt prices fell sharply on 22 October, with standard-grade metal in Rotterdam assessed at $17-18/lb, down from $21-22/lb on 20 October, as weakness in Chinese feedstocks, salts and battery materials continued to weigh on the market. The decline mirrors moves elsewhere in the cobalt supply chain. Argus -assessed cobalt hydroxide fell to $11.2-13.2/lb cif China on 22 October from $17.5-20/lb on 1 September, while Chinese cobalt metal dropped to Yn230-240/kg ($14.6-15.2/lb) from Yn301/kg on 3 September. Prices for cobalt sulphate — which accounts for the vast majority of end-use cobalt demand — have fallen to Yn43,000-45,000/t from Yn58,000-60,000/t in mid-October. Several traders and consumers said hydroxide offers have fallen faster than metal prices in recent weeks, with indications as low as $12-13/lb. Some said the decline reflected only a small number of trades and that liquidity remained too thin to establish a clear market level. Others pointed to weak demand across several downstream sectors and said the correction was overdue. Consumer electronics remains central to that weakness. Global lithium-cobalt-oxide (LCO) output is expected to fall by at least 30pc this year from 130,000t in 2025, while global smartphone shipments are forecast to decline by 16.7pc and tablet shipments by 8.6pc, according to US market research firm IDC. Participants said inventories accumulated in late 2025 and early 2026 were still being drawn down, limiting buying interest despite lower prices. Alternative feedstocks have also limited hydroxide demand. Imports of battery recycling feedstocks increased after China approved black mass imports last year. Consumers have increasingly turned to recycled material, mixed hydroxide precipitate (MHP) and cobalt metal as alternatives to hydroxide feedstock. Tighter supply struggles to impact price direction Prices have fallen despite renewed discussions about Indonesian supply cuts. Major producers including Tsingshan, Lygend, GEM and Huayou met in Shanghai on 20 October to discuss cutting MHP and nickel matte production by 50pc after a prolonged deterioration in margins. One producer estimated that output could fall to around 25,000 t/month of contained nickel from 45,000-50,000 t/month currently, implying a reduction of roughly 1,250-2,500 t/month of contained cobalt. The discussions reflect growing pressure on nickel margins. One producer said it had discussed curtailments as LME nickel approached $15,500/t. Prices fell as low as $15,275/t before recovering on reports of the Shanghai meeting. Indonesia's nickel miners' association APNI said just last month that prices closer to $18,000-18,500/t are needed to support the wider Indonesian nickel value chain. Several market participants nevertheless questioned how far any cuts would reduce cobalt availability. Chinese state-owned research group Antaike expects recycled cobalt supply to reach 50,000t of cobalt equivalent this year, up 26pc from 2025, while refined cobalt demand is projected to decline by 5.4pc to 217,000t. Market participants also reported substantial inventories. One estimated that 40,000-50,000t of cobalt units remain outside China in hydroxide form, while others pointed to full bonded warehouses holding MHP and cobalt-bearing raw materials around Guangzhou. Wuxi exchange stocks have fallen sharply, but participants estimated in July that a further 8,000-12,000t of cobalt metal remained elsewhere in China, equivalent to 4-5 months of domestic demand. Those inventories help explain why tighter controls in the Democratic Republic of the Congo (DRC) have provided less support than many expected. Export quotas and strategic allocations reduced feedstock availability earlier this year and contributed to a sharp rise in cobalt prices in the first half. But imports from the DRC subsequently recovered, Indonesian production continued to rise and recycled feedstocks became increasingly available. By Chris Welch and Thomas Kavanagh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

International fossil fuel finance down under Cop pledge

27/10/26

International fossil fuel finance down under Cop pledge

Edinburgh, 27 October (Argus) — International fossil fuel project finance from countries in the Clean Energy Transition Partnership (CETP) dropped by 72-80pc to $3.3bn last year compared with a 2019-21 baseline, but Italy, Germany and Switzerland are still not meeting the goal, according to a report by think-tank the International Institute for Sustainable Development (IISD). Under the CETP, signed in 2021 on the sidelines of the UN Cop 26 climate summit in Glasgow, 40 countries and jurisdictions pledged to end international public finance for fossil fuels by the end of 2022. The signatories include Canada, Norway, the UK, Germany, Italy, the Netherlands and Denmark. The US left the alliance in February 2025. The commitment covers public finance provided through development finance institutions, export credit agencies and multilateral development banks. "The CETP is an example of how international agreements with time-bound commitments, combined with ongoing monitoring and accountability efforts, can shift international energy finance away from fossil fuels and toward clean energy, although scaling clean energy financing has been slow," IISD said. But clean energy finance from the CETP countries in the same period only rose by 28pc to $5.6bn and only 42pc of the funding removed from fossil fuel investments has been going towards clean energy, according to IISD. Some countries have yet to meet their Cop 26 pledge. Italy has provided $6bn in international fossil fuel finance since the end of 2022, when countries were due to meet their CETP target, while Germany and Switzerland provided $2.5bn and $1.6bn, respectively. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Climate plans improve but off track for 1.5°C goal: UN

27/10/26

Climate plans improve but off track for 1.5°C goal: UN

Edinburgh, 27 October (Argus) — Countries' nationally determined contributions — climate plans — have improved in quality and scope, but progress in lowering emissions remains "substantially off track" to limit temperature rises to 1.5°C and keep a temporary overshoot short, according to a report from UN climate body the UNFCCC released today. The report took into account 127 new nationally determined contributions — climate plans — released between 1 January 2024 and 31 August 2026, representing 154 out of 194 parties to the Paris agreement. The 154 parties account for around 71pc of total greenhouse emissions, according to the report. The report does not include the US — the world's second-biggest emitter — since the country officially left the Paris accord last year. The UNFCCC found that GHG emission reductions — including land use, land-use change and forestry — stemming from the implementation of NDCs are projected to peak and decline by 2035, reaching 6pc below 2019 levels on average. The cuts would imply "best-estimate warming of 1.7-2.3°C by the end of the century", the report said, adding that "returning warming to 1.5°C would require substantial additional GHG emission reductions in the coming years". The NDCs "show improvement, compared with the previous NDCs, in the quality and depth of information provided, as well as broader thematic coverage", the UNFCCC said. The organisation found that energy transition is a common theme in the NDCs and that electrification plays "an increasingly important role in reducing emissions while strengthening energy security". "Against the backdrop of recent energy crises, almost two thirds of parties highlighted the contribution of mitigation measures to energy security, particularly through renewable energy and energy efficiency improvements," the report said. The report showed that 27pc of countries referred "to transitioning away from fossil fuels in energy systems in a just, orderly and equitable manner" as per the call made at Cop 28 in Dubai and that 10pc reported targets for cutting fossil fuel fired power generation by 2035, representing a 258TWh reduction. Around 6pc of the parties included fossil fuel phase-out targets, according to the report. The report found that parties in their NDCs increased their focus on creating enabling conditions for renewable energy deployment, efficiency improvements and electrification, with around 70pc reporting measures to improve electricity grids. It also showed that 92pc of the parties included methane in their NDCs and, of those, 29pc pointed to renewable energy generation as a key supply-side driver of energy security by replacing imported fuels with domestic energy sources. A total of 94pc of parties mentioned in their NDCs that they plan to use — or may use — voluntary co-operation under Article 6 of the Paris agreement and 81pc referred to the use of internationally transferred mitigation outcomes — when countries exchange emissions savings bilaterally to be counted towards their NDCs. The UN Cop 31 climate summit due to take place in Turkey next month "can help address some of the key gaps highlighted in this year's reports with its focus on practical measures to support greater implementation, UNFCCC executive secretary Simon Stiell said. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Germany’s IKI prepares large grants climate fund launch

26/10/26

Germany’s IKI prepares large grants climate fund launch

Berlin, 26 October (Argus) — Germany's environment ministry is preparing to launch a new annual "large grants" funding call through the ministry's international climate initiative IKI at the UN Cop 31 summit in Antalya, Turkey, next month. The IKI large grants will provide funding of €7mn-15mn per project over a period of up to eight years. The call will close on 9 February and is open to organisations and/or companies forming a consortium, the ministry said. The new call will have nine priority areas — seven thematic and two country-specific — four of which the ministry has disclosed in advance. They are mobilising the private sector for climate adaptation measures, providing legal certainty and tackling illegal deforestation by exposing environmental crime, promoting integrated measures for biodiversity and climate action through co-ordinated governance and financing, and protecting and restoring marine natural carbon sinks. IKI's annual "medium grants" funding call, which launched in 2020, provides funding of €300,000-800,000 per project over a period of 2-3 years. This targets mainly non-governmental organisations and academic institutions. The 2025 IKI medium grants funding call saw 10 successful bidders receive a total of €7.4bn. The 2026 call was announced on 13 October and closes on 12 January. IKI's four basic funding areas are reducing greenhouse gas emissions, climate change adaptation, preserving natural carbon sinks and protecting biodiversity. IKI-supported projects can to an extent also make use of the UN's Paris agreement crediting mechanism (Pacm). IKI funds can be used for initial preparatory work on a Pacm project, such as drawing up documentation or feasibility studies. And IKI can provide some start-up funding for pilot projects introducing expensive technologies, on the condition that the resulting emissions savings are counted towards the host country's climate plan under the Paris climate agreement, known as a nationally determined contribution (NDC). The same limitations apply to blended finance approaches which combine IKI funds with private funds. Emissions savings corresponding to IKI's share of the total financing must be counted towards the host country's NDC. Under revolving funds, emissions savings achieved through IKI support may be traded as internationally transferred mitigation outcomes under Article 6 of the Paris agreement, but only if the proceeds are channelled back into the fund and fully reinvested in new projects. And for IKI funds to count as international climate finance, the corresponding emissions savings must be credited to the host country's NDC. Germany's environment ministry views Pacm as the crediting benchmark not just for the Article 6.2 framework, which allows bilateral trading of emissions reductions between countries, but also for the voluntary carbon market. IKI also supports the Supporting Preparedness for Article 6 Cooperation (SPAR6C) programme for developing countries Colombia, Pakistan, Thailand and Zambia, which runs over June 2022-August 2027. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Lula win keeps E35 prospects in focus

26/10/26

Lula win keeps E35 prospects in focus

Sao Paulo, 26 October (Argus) — Brazil's ethanol industry sees President Luiz Inacio Lula da Silva's re-election on 25 October as a green light for further increases in gasoline blending mandates and for maintaining ethanol import tariffs. Brazil has a temporary E32 mandate — requiring a 32pc blend of anhydrous ethanol in gasoline — that is due to expire in late January 2027. The mandate could be extended for another 180 days. After that, the government could make the E32 mandate permanent or revert to E30. Market participants and observers see Lula's government as more supportive of this decarbonization policy than runner-up Flavio Bolsonaro. Flavio, the son of former president Jair Bolsonaro, said in August that he would revisit the E32 mandate if elected, comparing it with "skimpflation" a term for when the price of a good does not rise but its quality decreases due to inflation. He said there were other ways to support Brazil's ethanol sector and that his government would pursue those alternatives. Industry groups said the remarks misinformed consumers and undermined policies aimed at encouraging ethanol use that have been built over the past 50 years by governments across the political spectrum, according to a statement signed by associations Unica, Unem, Feplana, Unida and Orplana. Brazil's Fuel of the Future law sets a target for an E35 blending mandate, with no specific deadline and subject to feasibility testing. Lula's government approved the start of E35 testing in September 2026. Import tariffs Observers also expect the 18pc ethanol import tariff — an item US president Donald Trump has repeatedly railed against — to remain in place under Lula's new term. The 18pc import tariff on ethanol from all origins except Mercosur countries has been in place since 2023 as a way to protect domestic producers from an influx of US ethanol. Ethanol has been at the center of Trump's claims of "unfair trade practices" by Brazil and was cited as one of the reasons for a USTR investigation that resulted in additional 25pc US tariffs on Brazilian goods in July. Lula said the US tariffs were unfounded and hurt both Brazil and the US, while declining to back down on Brazil's 18pc tariff on imported ethanol. By Maria Lígia Barros Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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