Covid-19 cuts Japan’s energy emissions in FY 2020-21

: Coal, Crude oil, Emissions, Natural gas
22/03/30

Japan's energy-related CO2 emissions fell by around 83mn t in the April 2020-March 2021 fiscal year, as the Covid-19 pandemic limited economic activity and reduced energy consumption in the country.

Japan's CO2 emissions derived from energy use fell by 82.9mn t in 2020-21, following a 7.2mn t reduction in February-March 2020, the last two months of the 2019-20 fiscal year when Covid-19 began to spread, according to the latest survey by the environment ministry.

The fall in the 2020-21 energy-related CO2 emissions contributed to a 5.1pc year-on-year decline in Japan's overall greenhouse gas (GHG) emissions for the year, which were preliminary estimated at 1.149bn t of CO2 equivalent (CO2e).

Energy-related CO2 emissions from the country's industry and commercial sectors were estimated to have fallen by 51.1mn t and by 14.9mn t respectively between February 2020 and March 2021 because of Covid-19 restrictions, along with a 27.6mn t reduction in the transportation sector. But CO2 emissions generated from energy use by households rose by 3.6mn t as people spent more time at home to limit the spread of the virus.

Japan has pledged to cut GHG emissions by 46pc by 2030-31 compared with 2013-14 levels, before achieving carbon neutrality by 2050. This means the country would have to reduce its GHG emissions to 760mn t CO2e in 2030-31 from 2013-14 levels.

By Motoko Hasegawa

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25/12/19

Australia needs electricity carbon policy: Commission

Sydney, 19 December (Argus) — The Australian government should introduce a national market-based policy to drive electricity sector decarbonisation, potentially modelled on the existing safeguard mechanism, economic research and advisory body the Productivity Commission (PC) said in a final report today. The PC had previously recommended applying the safeguard mechanism to electricity generators at the facility level, but it may be better to consider this issue separately, it noted in a final inquiry report into "investing in cheaper, cleaner energy and the net zero transformation". "Multiple policy options will need to be considered for the electricity sector, and even if a baseline-and-credit scheme is preferred, it may be better to keep this separate from the safeguard mechanism, at least at first, to avoid risks of uncertainty and disruption in the carbon credit markets that support that policy," the PC said. Currently there is little relationship between the emissions intensity of Australia's remaining coal-fired power plants and their announced retirement dates, according to the commission. Recognising the value of emissions reduction would pave the way for more emissions-intensive plants to retire earlier, it argued. Electricity excluded from safeguard mechanism Under the safeguard mechanism, facilities emitting more than 100,000t of CO2 equivalent (CO2e) in a compliance year across several sectors earn safeguard mechanism credits (SMCs) if they report scope 1 emissions below their baselines, and must surrender SMCs or Australian Carbon Credit Units (ACCUs) if their emissions are above the threshold. The electricity sector, Australia's largest emitter, is effectively excluded from the mechanism because the emissions reduction policy for the segment has been focused on renewable electricity targets. The mechanism applies a single sectoral baseline of 198mn t CO2e/yr across all electricity generators connected to Australia's main electricity grids, which is way above recent data — emissions from the electricity generation sector reached a combined 138.9mn t CO2e in the 2023-24 compliance year. A decision on whether to expand the mechanism to electricity may be considered in the upcoming safeguard mechanism review in 2026-27 . NEM review But any new policy will need to complement reforms arising from the National Electricity Market (NEM) review, which also received a final report this week . The decision will also need to be consistent with several policies and agreements already in place to support new investment or manage the exit of coal plants across Australia, the PC noted. While the existing Capacity Investment Scheme (CIS) and the proposed Electricity Services Entry Mechanism (ESEM) scheme mainly target renewable output or capacity, a least-cost emissions-reduction policy would help companies deciding when to retire coal and gas plants, according to the commission. This will be even more important if the Australian government prioritises firming auctions, which may support new gas-fired plants. Emissions policy uncertainty has been a major barrier to investment in gas-powered generation, the PC said. "Firming auctions will be more effective if project proponents know in advance how their emissions will be treated," it noted. Apart from a policy to drive electricity sector decarbonisation, the PC's final report urges the government to expand the safeguard mechanism , phase out fuel tax credits for on-road heavy vehicle operators, and reduce barriers to adopting low-emissions technology for heavy vehicles. And it also calls the government to phase out the fringe benefits tax exemption for electric vehicles (EVs), a recommendation that was criticised by industry body EV Council . By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

W Australia's gas surplus outlook strengthens: Aemo

25/12/19

W Australia's gas surplus outlook strengthens: Aemo

Sydney, 19 December (Argus) — The Australian Energy Market Operator (Aemo) is forecasting a bigger gas supply surplus in Western Australia (WA) for most of 2026-30, according to its 2025 WA Gas Statement of Opportunities (GSOO) report released today. Aemo now projects that both gas supply and demand will be lower than previously expected in the period, because of cutbacks at major industrial users and downward revisions to its production forecasts. But its demand revisions were larger than its supply revisions, increasing its projected surplus. The state's gas supply will exceed demand over most of that period, except in 2028 and 2030 (see table) . It has increased its projections for the size of the surplus compared with those in its 2024 WA GSOO report. Supply side Aemo cut its WA gas supply forecast because of delays, gas reserve depletions, and decreased expected production at the Gorgon, Scarborough, and Pluto projects, it said. The market operator previously expected Australia producer Strike Energy to open its 87 TJ/d (2.3mn m³/d) West Erregulla project in 2026. But Strike only aims to make a final investment decision on the project in July-December 2026 , later than originally anticipated . Strike's West Erregulla delay lowered WA's expected gas production by 52 TJ/d in 2027 and 63 TJ/d in 2028, Aemo said. Aemo has also cut its production expectations for the Scarborough and Pluto gas fields by up to 24 TJ/d in 2030, it said. Australian developer Woodside Energy aims to process 7mn t/yr of Scarborough gas and 3mn t/yr of Pluto gas from early 2027, it said in November. Workers building a 5mn t/yr LNG train at the Pluto LNG terminal plan to launch a strike on 6 January. Their current enterprise bargaining agreement with Australian engineering firm Bechtel will expire on 19 December, Argus understands. Planned maintenance and lower utilisation at the Gorgon project contributed to a 16 TJ/d cut to Aemo's forecasts, it said. The project's owners — which include Chevron, ExxonMobil, Shell, Osaka Gas, Tokyo Gas and Jera — will modify its three-train Gordon LNG terminal as part of a A$3bn ($1.98bn) project, it said in December. Reserve downgrades and depletions at the Walyering, Beharra Springs, Macedon, and Varanus Island fields mostly account for the rest of the supply revisions, Aemo said. The Walyering and Beharra Springs field reserve downgrades cut Aemo's WA supply forecast by 5 TJ/d in 2026 and 23 TJ/d in 2029, it added. Demand side The closure of nickel mining and alumina refining operations cut Aemo's 2026-30 demand forecast, the operator said. But demand will still rise over that period, from 1,085 TJ/d in 2026 to 1,295 TJ/d, because of new mining and processing activity, it said. US producer Alcoa opted to permanently close its 2.2mn t/yr Kwinana alumina refinery on 30 September , after it paused the site in July 2024. It has not announced a full closure timeline yet, Alcoa Australia president Elsabe Muller told Argus at the time. Australian miner IGO has also paused its Forrestania and Cosmos nickel projects over recent years. Multiple developers including Australian producers Iluka Resources , Cobalt Blue , and RZ Resources will develop critical mineral mining or processing projects in WA over the coming years. By Avinash Govind WA projected gas surplus TJ/d Year Surplus (2024 WA GSOO) Surplus (2025 WA GSOO) 2026 4 54 2027 5 20 2028 -12 -89 2029 5 132 2030 -2 -11 *GSOO refers to Gas Statement of Opportunities Source: Australian Energy Market Operator Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Energy Transfer halts plans for Lake Charles LNG

25/12/18

Energy Transfer halts plans for Lake Charles LNG

Houston, 18 December (Argus) — US midstream firm Energy Transfer is suspending development of its planned 16.5mn t/yr (2.2 Bcf/d) Lake Charles LNG export terminal in Louisiana to focus on natural gas pipeline expansions, the company said today. The pivot allows the company to reallocate capital to gas pipeline projects that provide "superior risk/return profiles", Energy Transfer said. The company separately said it will increase the capacity of its planned Desert Southwest expansion of the Transwestern pipeline, allowing it to move more gas from west Texas' Permian basin to the southwestern US. The decision to scrap Lake Charles LNG follows a month of dissonance from company executives about moving forward with the facility. Energy Transfer co-chief executive Mackie McCrea told investors in early November that the company would not be able to reach a final investment decision (FID) until it sold off 80pc of equity shares in the project. But Amy Chen Davis, vice president of Lake Charles LNG, told an industry event on 10 December that the company was in talks with potential partners and would reach a final decision in early 2026. The company said earlier this year it planned an FID by the end of 2025. The midstream firm has sought for years to convert the existing Lake Charles import facility into an export terminal. Shell signed on with a 50pc stake in 2019 but pulled out the following year as part of cost-cutting measures during the Covid-19 pandemic. McCrea had signaled to investors that the company was being cautious with entering the LNG export industry. "When you're chasing billions of dollars in projects, several of which we've already announced, we've got to be careful stepping out on something like this," McCrea said on 5 November. "We're not an LNG company like we compete with. We're a pipeline company that has a regas facility converting part of it to LNG." Investor MidOcean Energy had signed a preliminary agreement to fund 30pc of Lake Charles LNG's construction costs in exchange for 30pc of offtake, but the firms never finalized the deal. Suspension of the project also may set back the efforts of Saudi Aramco, which holds a 49pc stake in MidOcean, to develop an LNG portfolio. MidOcean has a share in Peru's 4.45mn t/yr Pampa Melchorita LNG export plant and the Shell-led 14mn t/yr LNG Canada export terminal in British Columbia. Pipeline project in focus Meanwhile, Energy Transfer said it will upsize capacity on the Desert Southwest expansion. The company said it will increase the expansion's capacity by 800mn cf/d to 2.3 Bcf/d to satisfy additional demand in the southwestern US. Energy Transfer reached an FID on Desert Southwest in August. The expansion is one of several projects working to increase gas transportation capacity out of the Permian, where a steady increase in crude-driven activity — and commensurate rise in associated gas output — has outpaced the increase in gas takeaway capacity. This has created a local gas supply glut and some of the lowest gas prices in the US. By Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US House passes bill to expedite permitting

25/12/18

US House passes bill to expedite permitting

Washington, 18 December (Argus) — The US House of Representatives on Thursday approved a bill designed to fast-track permitting for energy projects and reduce related litigation risks. But a last-minute change Republicans made to exclude some offshore wind and solar projects led some Democrats and a major clean energy group to withdraw support, complicating the bill's chances of passage in the Senate. The Republican-controlled House voted 221-196 to pass the SPEED Act, with 11 Democrats crossing the aisle to vote for what would be the most significant changes to federal permitting in years. The bill will now advance to the US Senate, where proponents will likely need to agree to make significant changes if they hope to pick up the votes of at least seven Democrats to avoid a filibuster. The bill "finally brings common sense by cutting red tape that dramatically increases the cost and, in some cases, just makes it economically unfeasible to do projects", House Republican majority leader Steve Scalise (R-Louisiana) said. The SPEED Act focuses on revising project reviews under the National Environmental Policy Act (NEPA), which is a source of delay and litigation risk for pipelines and renewable projects alike. The bill would require federal agencies to narrow those reviews and uphold those decisions even if federal courts find them to be inadequate. The bill would also provide permit "certainty" by limiting the government's ability to rescind prior approvals, averting a repeat of events like the cancellation of the Keystone XL pipeline. "We applaud the House for advancing the SPEED Act, a bipartisan, commonsense step toward fixing a federal permitting system that's long been broken," oil industry group the American Petroleum Institute said. Republican leaders were hoping 30-40 Democrats would join them to support the SPEED Act. The bill had broad bipartisan support when it was drafted because of provisions meant to prevent permitting delays that have plagued both oil and gas pipelines and renewable energy development. But Republican leaders, to satisfy far-right conservatives, made a change to the bill earlier this week that would prevent its expedited permitting procedures from benefiting any project that Trump's administration has blocked or revisited since 20 January. The Trump administration has targeted multiple offshore wind and solar projects this year and has ordered the developer of the nearly complete 704MW Revolution Wind project off the coast of Rhode Island to stop construction. That change fractured a bipartisan coalition that had spent months working on technology-neutral permitting language. The American Clean Power Association, the largest industry group for US renewable energy, on Wednesday withdrew its support of the bill , arguing the "poison pill amendment" that Republicans made eviscerated bipartisan language that gave expedited permitting treatment for all types of energy resources. A number of House Democrats who had backed the bill also withdrew their support. American Clean Power plans to work with both parties in the Senate to make changes. "This is not the final draft," representative Scott Peters (D-California) said during floor debate Thursday, vowing to work with his colleagues in the Senate to address House Democrats' concerns. By Chris Knight and Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

2026 set to be among 4 hottest years: UK Met Office

25/12/18

2026 set to be among 4 hottest years: UK Met Office

London, 18 December (Argus) — The forecast for 2026 suggests that it is likely to be one of the four warmest years on record, in terms of global average temperature, UK weather agency the Met Office said today. The Met Office's central estimate for 2026 puts the global average temperature at 1.46°C above pre-industrial levels. The range the agency forecasts is between 1.34°C and 1.58°C above the pre-industrial average. The central estimate suggests that 2026 will be the fourth consecutive year that the average temperature will be at least 1.4°C above pre-industrial levels. "Prior to this surge, the previous global temperature had not exceeded 1.3°C", the Met Office's Professor Adam Scaife said. Scaife leads the team behind the global forecast for 2026. The global average temperature in 2024 was 1.55°C above pre-industrial levels, making it the hottest year on record , several international weather and science agencies agreed. The Paris climate agreement seeks to limit the global rise in temperature to "well below" 2°C above pre-industrial levels, and pursues a 1.5°C threshold. The Paris accord's temperature parameters work on a longer timeframe, of at least two decades, so a temperature breach across a year or a few years does not render the accord broken. The World Meteorological Organisation in March estimated that the current level of global warming is at 1.37°C above pre-industrial levels. And climate science "may be underestimating the magnitude of human-induced global warming", given a recent surge in global temperatures, the UN Environment Programme said earlier this month. This year is "on course" to tie with 2023 as the second hottest year on record, EU earth-monitoring programme Copernicus said earlier this month . The global average temperature anomaly for January-November this year is 0.60°C above the 1991-2020 average, and 1.48°C above the pre-industrial reference period of 1850-1900, Copernicus data show. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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