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EU agrees carbon removals framework

  • : Emissions
  • 24/02/20

Negotiators for the European Parliament and EU member states have provisionally agreed on a regulation establishing an EU carbon removal certification framework. Parliament said the new rules will allow for farmers to receive payments for carbon removals and set minimum sustainability requirements for carbon farming activities.

The provisional agreement paves the way for formal adoption by parliament and EU member states, possibly before the EU elections in June. The new voluntary EU certification framework for carbon removals covers permanent carbon storage through industrial technology, carbon storage in long-lasting products, as well as carbon farming.

Parliament noted an extended scope covering carbon farming activities that cut emissions from agricultural soils. And livestock methane emissions reduction is to be included on the basis of a review in 2026. Permanent carbon removals are defined as storing carbon for at least 35 years. And carbon farming activities must continue for at least five years.

The agreement also foresees carbon removals and emissions cuts as contributing to achieving the EU's nationally determined contributions (NDCs) — emissions reduction pledges — to the Paris climate agreement. And the European Commission will establish an EU registry for carbon removals and soil emissions reductions within four years of the regulation's entry into force.

European waste-to-energy association Eswet noted the specific recognition of biogenic permanent carbon removal via bioenergy with carbon capture and storage. Eswet called for the carbon removals certification framework to interact with the EU's emissions trading system (ETS) so as to provide incentives to remove carbon and accelerate to net zero emissions, which the EU is legally mandated to reach by 2050.

But non-governmental organisation Carbon Market Watch (CMW) was more negative, calling for parliament and member states to reject the regulation.

The units certified under the framework risk being double-counted by both voluntary carbon markets and as part of the EU's NDCs and climate policies, CMW warned. And sustainability criteria for biomass are not strict enough, probably leading to increased biomass demand.

But CMW does see some positive elements, such as biodiversity conditions for carbon farming and a periodic review into the impact of biomass. CMW further said the framework's units will "initially" be ineligible for use under non-EU member state NDCs or the UN's carbon offsetting and reduction scheme for international aviation (Corsia).

"The EU should have banned offsetting in voluntary and compliance frameworks, such as the EU ETS and Corsia, and double-counting rather than allow the carbon removal certification framework to slow down decarbonisation efforts," Wijnand Stoefs, CMW's lead on carbon removals, said.


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25/02/19

EU draft plan seeks to cut energy costs

EU draft plan seeks to cut energy costs

Brussels, 19 February (Argus) — The European Commission has set out plans to tackle the cost of energy in the EU, warning in a draft document that Europe risks de-industrialisation because of a growing energy price gap compared to global competitors. High energy prices are undermining "the EU's global standing and international competitiveness", the commission said, in a draft action plan for affordable energy, seen by Argus . The plan is expected to be released next week, alongside a clean industrial deal and other strategy documents. Much of the strategy relies on non-binding recommendations rather than legislation, particularly in energy taxation. Officials cite EU reliance on imported fossil fuels as a main driver of price volatility. And they also highlight network costs and taxation as key factors. For taxation, the commission pledges — non-binding — recommendations that will advise EU states on how to "effectively" lower electricity taxation levels all the way down to "zero" for energy-intensive industries and households. Electricity should be "less taxed" than other energy sources on the bloc's road to decarbonisation, the commission said. It wants to strip non-energy cost components from energy bills. Officials also eye revival of the long-stalled effort to revise the EU's 2003 energy taxation directive. That requires unanimous approval from member states. The commission pledges, for this year, an energy union task force that pushes for a "genuine" energy union with a fully integrated EU energy market. Additional initiatives include an electrification action plan, a roadmap for digitalisation, and a heating and cooling strategy. A white paper will look at deeper electricity market integration in early next year. EU officials promise "guidance" to national governments on removing barriers to consumers switching suppliers and changing contracts, on energy efficiency, and on consumers and communities producing and selling renewable energy. More legislative action will come to decouple retail electricity bills from gas prices and ease restrictions on long-term energy contracts for heavy industries. By 2026, the commission promises guidance on combining power purchase agreements (PPAs) with contracts for difference (CfDs). And officials will push for new rules on forward markets and hedging. There are also plans for a tariff methodology for network charges that could become legally binding. Familiar proposals include fast-tracking energy infrastructure permits, boosting system flexibility via storage and demand response. Legislative overhaul of the EU's energy security framework in 2026 aims to better prepare Europe for supply disruptions, cutting price volatility and levels. Specific figures on expected savings from cutting fossil fuel imports are not given in the draft seen by Argus . But the strategy outlines the expected savings from replacing fossil fuel demand in electricity generation with "clean energy" at 50pc. Improving electrification and energy efficiency will save 30pc and enhancing energy system flexibility will save 20pc, according to the draft. The commission is also exploring long-term supply deals and investments in LNG export terminals to curb prices. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US court pauses refiner's biofuel case after EPA shift


25/02/18
25/02/18

US court pauses refiner's biofuel case after EPA shift

New York, 18 February (Argus) — A US federal appeals court has paused the Environmental Protection Agency (EPA)'s rejection of a refiner's request for exemptions from federal biofuel blend mandates, with relief possible for two more refiners as the US reassesses policy under a new administration. A three-judge panel on the US 5th Circuit Court of Appeals last week granted a request from Calumet's 57,000 b/d refinery in Shreveport, Louisiana, to pause a recent EPA action denying the refinery relief from its 2023 obligations under the federal Renewable Fuel Standard. The stay will remain as the court continues reviewing the legality of EPA's rejection, issued in the waning days of President Joe Biden's administration. Under the program, EPA sets annual mandates for blending biofuels into the conventional fuel supply but allows oil refineries that process 75,000 b/d or less to apply for exemptions if they can prove they would suffer "disproportionate" economic hardship. The Biden administration denied these petitions en masse, though most of these rejections were struck down by courts concerned with the government's reasoning. During his first term, President Donald Trump was more generous with refinery relief, which in turn weighed on biofuel demand and the prices of Renewable Identification Number (RIN) credits at the time. Though the 5th Circuit did not explain its decision, EPA had shifted course after the presidential transition, telling the court earlier in the week that it did not oppose Calumet's request for a stay and that it was reconsidering the refiner's earlier exemption petition. The agency said in other court cases that it would not oppose similar pauses on recently issued waiver rejections affecting Calumet's 15,000 b/d oil refinery in Great Falls, Montana, and CVR Energy's 75,000 b/d refinery in Wynnewood, Oklahoma. EPA's ambivalence makes stays more likely, leaving those refiners with little reason for now to enter the market for RIN credits. The agency still says it "takes no position on the merits" as its review of small refinery exemptions continues but the filings at least suggest the possibility of reversing prior rejections. EPA has not yet signaled a more substantive policy around how it will handle similar small refinery requests, which have piled up in recent months. There were 139 pending petitions covering ten compliance years according to the latest program data. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UN Green Climate Fund approves $483.1mn for projects


25/02/18
25/02/18

UN Green Climate Fund approves $483.1mn for projects

London, 18 February (Argus) — The UN Green Climate Fund (GCF) has approved eight projects, allocating $483.1mn in climate funding across 31 developing countries. The GCF will consider four more projects — which would allocate around $253.7mn — during its board meeting, which runs from 17-20 February. Of the approved projects, five are focused on adaptation — adjusting to the effects of climate change where possible — and three on adaptation and mitigation, which refers to cutting emissions. The GCF operates under the financial mechanism of UN climate body the UNFCCC and is mandated to invest half of its resources in mitigation and half in adaptation. It is the world's largest climate fund and was originally capitalised with $10.3bn in 2015. The fund's first replenishment, in 2019, gathered a further $10bn in pledges and its second replenishment reached around $13.6bn after funds committed at the UN Cop summits in 2023 and 2024 . But the US rescinded "outstanding pledges" to the fund earlier this month, the country's State Department said. These are thought to amount to around $4bn. Recent UN climate talks have centred around finance for developing countries, to address climate change and decarbonise. Countries agreed at last year's Cop 29 to a new financing goal of "at least" $300bn/yr for developing nations by 2035. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Frustration over delays to UK CCS and H2 programmes


25/02/17
25/02/17

Frustration over delays to UK CCS and H2 programmes

London, 17 February (Argus) — Companies are growing increasingly frustrated with the UK government over unclear timelines and inadequate funding for carbon capture and storage (CCS) and clean hydrogen projects. The government has drawn strong praise for the design of its contracts-for-difference style production subsidies for electrolytic hydrogen and CCS systems to underpin low-carbon hydrogen from fossil fuels. But too few projects have been able to access the schemes and developers are losing confidence that the UK will match their ambition with sufficient and timely funding. "It's like building a great motorway with five lanes but very few, or no junctions," industry body OEUK's head of energy policy Enrique Cornejo said. "We have a great policy framework, but we don't have access, apart from a very small number of projects," he told the UK CCUS and Hydrogen Decarbonisation Summit in Leeds, northern England this month. Cornejo welcomed a recent final investment decision (FID) for the Teesside CCS system and progress made on northwest England's HyNet cluster, which is expected to reach FID this year, but he urged the government to set out funding and timelines for the Scottish "Acorn" and Humberside "Viking" CCS projects that are supposed to be next in line. "It's been a really long wait for these projects and the risk is very clear that if we don't hear some positive news from the government" there could be "lost investment", he said. It is a view shared by Norway's Equinor, which owns 45pc of the Teesside CCS project and a portfolio of Humberside hydrogen proposals that are in limbo having been overlooked in initial government selections. "Keeping projects on life support costs a lot of money," said the company's director of UK low-carbon solutions hydrogen, Dan Sadler. Equinor has spent "hundreds of millions" on its proposals for CCS-based hydrogen production, electrolytic hydrogen production, transport and storage infrastructure, he said. Sadler made the same appeal 12 months ago but has still received no update on the timing for the so-called "track 1 expansion process" which would allow its CCS-hydrogen project to move ahead. Optimism over the "fantastic" Teesside FID and contracts signed with three electrolytic projects must be balanced against concerns that HyNet has not reached FID nor have any of the UK's CCS-based hydrogen plants , Sadler said. On electrolytic hydrogen, the UK missed its deadline to shortlist winners of second round projects in 2024. Multiple electrolysis-focused developers at the Leeds conference talked of "standstill" in the sector, while financiers echoed the importance of the UK's second hydrogen allocation round (HAR2) shortlist. "We're waiting with bated breath for HAR2 so we know which projects we can look to finance," UK-based National Wealth Fund's managing director of banking and investments, Emily Sidhu, said. Opening applications for the UK's subsidy scheme for hydrogen pipeline and storage infrastructure has slipped to the fourth quarter of this year, which means it could be many months into 2026 before winners are selected and years until the projects get built. UK pipeline operators envy the government support that peers in continental Europe have received and have been trying to alert London about what companies perceive to be unduly arduous permitting processes, one pipeline firm told Argus . Emperor's new clothes The funding appeals come at a difficult time. The Labour government, which was elected last year, is reviewing spending across all departments, creating extra doubt. The total cost of the UK's ambitions for hydrogen and CCS would surpass several times over the £21.7bn ($27.3bn) for CCS and £2bn for electrolytic hydrogen that the government has confirmed for the first rounds. While raising funds from the government, the Emissions Trading System (ETS) or the so-called gas shipper obligation are possibilities, it is not sufficiently clear to give confidence to investors, Equinor's Sadler said. Moreover, the Labour administration has not said if it will stick to the former Conservative government's targets, Sadler noted. "It's rhetoric. Government policy for hydrogen and CCS? There isn't any. People quote 10GW [hydrogen production] and four [CCS] clusters by 2030 and 30mn t/yr [CO2 sequestration] by 2030. That's the Tory [Conservative] policy, the Labour government hasn't got a policy at the moment," Sadler said. The industry's belief in the UK as an investment proposition cannot be sustained forever, he said. The UK's Department for Energy Security and Net Zero has not responded to questions about the Labour government's hydrogen targets. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada sets out climate plan to hit 2035 emissions goal


25/02/12
25/02/12

Canada sets out climate plan to hit 2035 emissions goal

London, 12 February (Argus) — The Canadian government has released a new climate plan for the country, detailing actions it plans to take to reach its 2035 emissions reduction targets, with several references to the outcome of the UN Cop 28 climate summit in 2023. The Canadian government announced the country's 2035 target in December . It aims to reduce greenhouse gas (GHG) emissions by 45-50pc by 2035, from 2005 levels. This builds on its target to cut emissions by 40-45pc by 2030, from the same baseline, although the country is currently "on track" to reduce emissions by 34pc by 2030, from 2005 levels, the government said. Many of the plans outlined today are in line with the first global stocktake — the key outcome from Cop 28 in December 2023 . These include phasing out unabated coal-fired power, increasing renewable energy capacity, improving energy efficiency and cutting methane — a powerful GHG. The government plans to reduce methane emissions from Canada's oil and gas sector by 75pc by 2030, from 2012 levels. It will also "explore the transfer and use of ITMOs", which are internationally transferred mitigation outcomes, or emission credits. And the country will "explore the potential" for carbon removal technologies, although the plan warned on "potential risks that must be carefully managed". The document included detailed plans from several of Canada's provinces and territories, as well as the Assembly of First Nations. But the province of Saskatchewan — for which agriculture, oil and gas production and mining are key — pushed back on federal climate policies. Canada's government based its plans on the "best available science" and included recommendations from the independent Net-Zero Advisory Body. Insured losses from severe weather in Canada hit a record high of C$8.5bn ($6bn) in 2024, the government noted. And estimates suggest that "economic losses will rise to roughly 6pc of Canada's GDP by the end of the century", it added. Canada will need investments of between C$125bn and C$140bn annually to reach its legally binding goal of net zero emissions by 2050, according to the plan. The transition "will require substantial public and private sector investment and expertise", the government said. The plan released today is known as a nationally determined contribution (NDC). Countries and jurisdictions party to the Paris climate agreement are required to submit new plans every five years, ideally increasing in ambition. Canada committed at Cop 29 in November to an NDC aligned with Paris agreement temperature goals . The Paris accord seeks to limit the rise in global temperature to "well below" 2°C above pre-industrial levels, and preferably to 1.5°C. 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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