Latest market news

Germany to launch CBAM awareness campaign

  • : Emissions
  • 24/02/27

German emissions trading authority Dehst is launching an awareness campaign on compliance with the EU's carbon border adjustment mechanism (CBAM), as many companies have still not registered or handed in the mandatory report at the end of the first reporting phase.

"It appears that a large number of companies do not know that their imports fall under CBAM," Juergen Landgrebe, head of climate action, energy and emissions trading at Germany's federal environment agency UBA — which hosts Dehst — told Argus. The awareness campaign is being run by industry federation BDI and the German chamber of commerce and industry DIHK.

Dehst cannot quantify the number of missing reports, as only the companies will know whether or not they fall under CBAM, Landgrebe said. It is possible that some companies are unaware that CBAM applies to their imports, he said.

Import of supposedly minor products such as screws also fall under CBAM, head of Dehst's economics unit Jan Weiss said at the E-World conference in Essen last week.

Landgrebe commended the flexible reaction of the European Commission, which has introduced a "late button" on its CBAM platform and extended the reporting deadline. The first report was due on 31 January, but registration has only been possible since 12 January because of technical issues. No one will incur a disadvantage for being late, Landgrebe stressed.

The EU's CBAM aims to prevent so-called carbon leakage — whereby companies relocate to other jurisdictions to avoid carbon costs — in sectors covered by the bloc's emissions trading system, and is initially being applied to cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. Reporting obligations began with the launch of the transition period on 1 October, while the levy on imports will be phased in from the start of 2026.

CBAM is already having positive effects, Landgrebe said, with countries such as Turkey and Taiwan looking into the carbon intensity of their export products.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

24/11/06

US elections undecided as some polls close: Update

US elections undecided as some polls close: Update

Updates with changes throughout Washington, 5 November (Argus) — Early voting results from key US swing states point to a tight race between former president Donald Trump and vice president Kamala Harris, with the outcome carrying high stakes for energy policy, trade and climate change. Pennsylvania, Michigan, Wisconsin, North Carolina, Georgia, Arizona and Nevada are the swing states that will decide which candidate reaches the threshold of 270 electoral votes needed to win the election. Early results from Georgia point to a slight advantage for Trump relative to his 2020 results in that state, which President Joe Biden then carried by nearly 12,000 votes. But early voting results also point to slight gains for Harris in some demographic segments relative to Biden's 2020 performance. That would make election results in Wisconsin, Michigan and Pennsylvania — which typically take days to complete the count — crucial for determining the outcome. Winning all three states would secure a victory for either candidate. In the US Senate, Republicans have a pathway to win control with a 51-49 majority by flipping one more seat, after West Virginia governor Jim Justice (R) was declared the winner in that state's Senate race by the Associated Press. Democrats are defending seats in close races in Montana, Ohio, Michigan, Pennsylvania and Wisconsin. If the Senate is tied, control will go to the party that wins the presidential election. Even before polls closed today, Trump said there was a "lot of talk about massive CHEATING in Philadelphia" in a post on his social media site, in a rerun of his strategy in the 2020 election of making unsubstantiated claims about voting. Harris, in a campaign speech on Monday in Pennsylvania, said the election offered a chance to "turn the page on a decade of politics that have been driven by fear and division". Trump has focused heavily on energy policy and voter frustration about inflation in his bid for a second term. US motorists were paying an average of $3.07/USG for regular grade gasoline in the week ended on 4 November, the lowest price in 10 months, but still higher than at any point in Trump's first term. On the campaign trail, Trump has promised to bring down energy prices through a policy to "drill, baby, drill" and dismantling President Joe Biden's signature climate initiative, the Inflation Reduction Act. Harris has pledged to support the 2022 law and other Biden energy policies , such as continued support for electric vehicles. Harris has disavowed her 2019 pledge to ban hydraulic fracturing. But oil and gas companies remain concerned about restrictions on federal leasing and efforts to electrify the vehicle fleet if she is elected. The next president will decide key questions on energy policy, such as the licensing of new US LNG export facilities and regulating carbon emissions from power plants, oil and gas facilities and vehicles. The election will carry equally high stakes for companies involved in metals , agriculture and other commodities. Trump is planning a combative approach to trade, with a 20pc tariff on all foreign imports and even higher tariffs against China. In 2025, the US Congress is also poised for a major fight on tax policy because of the year-end expiration of an estimated $4 trillion in tax cuts. On foreign policy, the next president will face decisions on the future of US restrictions on Russian energy exports and US sanctions against Iran and Venezuela and how to contain the growing threat of an Israel-Iran war and its potential impacts on oil flows from the Middle East. Polls also show a tight race in the fight for control of the US House of Representatives, where Republicans hold a 220-212 majority and where up to 22 seats are deemed competitive, election ratings firm Cook Political Report says. By Chris Knight and Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU contributed $31.2bn public climate finance in 2024


24/11/05
24/11/05

EU contributed $31.2bn public climate finance in 2024

Edinburgh, 5 November (Argus) — The EU has contributed €28.6bn ($31.2bn) in climate finance from public sources in 2024 to help developing countries cut their greenhouse gas emissions (GHG) and adapt to climate change, according to the European Council. Around half the funding went to climate adaptation or to cross-cutting action, which involves both mitigation — reducing GHG emissions — and adaptation. Almost 50pc took the form of grants, according to the EU. The €28.6bn includes €3.2bn from the EU budget, including from the European Fund for Sustainable Development Plus, and €2.6bn from the European Investment Bank. The EU said it also mobilised €7.2bn of private finance last year, and it "seeks to extend the range and impact of sources and financial instruments and to mobilise more private finance". The figures were released ahead of the UN Cop 29 climate talks, which open on 11 November in Baku, Azerbaijan. Finance will be a key topic at this year's summit as parties to the Paris deal will seek to agree on a new finance goal for developing nations, following on from the current, but broadly recognised as inadequate, $100bn/yr target. EU negotiators have signalled willingness to support "a stretched goal" with a public finance core, but have yet to provide a figure. Developed countries in general have yet to commit to a number for climate finance, while developing nations have for some time called for a floor of at least $1 trillion/yr. By Caroline Varin Europe's contribution to climate finance €bn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Carbon markets have ‘fallen short’ for LDCs: UNCTAD


24/11/05
24/11/05

Carbon markets have ‘fallen short’ for LDCs: UNCTAD

London, 5 November (Argus) — Carbon markets so far have not delivered meaningful climate finance to least developed countries (LDCs), according to a report by the UN Conference on Trade and Development (UNCTAD), although the mechanisms under Article 6 of the Paris climate agreement present improved prospects. "Fragmented" carbon markets have "fallen short" on providing climate finance to LDCs, increasing climate change mitigation, and supporting the structural transformation of these countries, UNCTAD said. Carbon credit prices are not high enough to incentivise projects, the report warns, and if they hold at about $10/t CO2, about 97pc of LDC mitigation potential will remain unharnessed by mid-century. Participation in the voluntary carbon market (VCM) and the UN's clean development mechanism (CDM) has also been concentrated in few LDC countries. About 75pc of carbon credits from LDC-based projects in the VCM come from just six countries — Bangladesh, Cambodia, the Democratic Republic of the Congo, Malawi, Uganda and Zambia — while 80pc of CDM credits come from six countries, four of which also figure in the VCM's areas of concentration — Bangladesh, Cambodia, Malawi, Myanmar, Nepal and Uganda. And the limited inclusion of carbon offset credits in most compliance markets means they "do not offer meaningful entry points" for LDCs, UNCTAD said. "The outlook may improve" as markets at the UN level shift to new mechanisms under Article 6 of the Paris deal, UNCTAD said, as parties can apply the lessons learned from the CDM to create an improved system — efforts for which have been evidenced by the "prolonged negotiations" on Article 6 rules, which will continue at the UN's Cop 29 climate conference kicking off in Baku, Azerbaijan, next week. The success of these mechanisms will rely on "decisive action" by LDCs to determine how to approach their participation to ensure it supports their development goals, the report found. And UNCTAD called on the international community to standardise carbon market rules to reduce fragmentation and simplify access for LDCs, as well as to allow them to participate in compliance markets. But carbon markets are just one tool, UNCTAD emphasised, and not a substitute for other forms of climate finance. This will be a key topic at Cop 29, as parties attempt to decide on a new collective quantified goal to replace the existing $100bn/yr commitment pledged by developed countries. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Trump unlikely to fully end US clean energy policies


24/11/04
24/11/04

Trump unlikely to fully end US clean energy policies

Houston, 4 November (Argus) — Although former US president Donald Trump has promised to end climate policies enacted during the administration of President Joe Biden, the political complications of reversing course make a full change of direction unlikely should Trump return to the White House. Trump has frequently criticized Inflation Reduction Act (IRA), promising to terminate the " Green New Scam " and rescind all unspent funds in the Biden administration's climate policy suite, if he is elected to a second term. But fulfilling that pledge may be difficult for many reasons, not least of which is whether Republicans have control of both chambers of Congress after Tuesday's election, including the unlikely outcome of a 60-seat majority needed to bypass a Senate filibuster. Beyond the math, Republican districts are benefiting from IRA funding, with some lawmakers from Trump's party already opposing the turmoil that could arise from an about-face on tax policy. "There's no way they're going to be able to replace and repeal the IRA, in large part because so many of the dollars are flowing to [Republican] states," said David Shepheard, a partner at consultant Baringa who specializes in energy and resources. "I think the pieces of the IRA that are most at risk are the [electric vehicle] tax credits, potentially some of the stimulative pieces around offshore wind." The IRA established a host of federal incentives to support clean electricity growth and the associated domestic supply chain. Those include technology-agnostic production and investment tax credits for electricity generators based on their emissions intensities. But the law went well beyond the power sector and also established credits for hydrogen production, electric vehicles and the manufacture of components needed by clean electricity systems. Project developers are counting on a policy trajectory that does not match Trump's rhetoric, which would allow some incentives to stay on the books. Companies expect market forces, such as corporate demand, and state mandates to continue to drive growth for solar and onshore wind and energy storage, rather than national politics. But there is more trepidation around offshore wind, a less mature sector for which the federal government is effectively the landlord for project sites. "There is no doubt that the trajectory of the US offshore wind industry will be impacted by the November election," Liz Burdock, chief executive of offshore wind industry group Oceantic Network, said. "Its outcome will influence how we maintain our momentum." Uncertainty around the US presidential election has dampened private investment in the sector this year, according to Oceantic. At the same time, companies say the industry has come a long way since 2016, with a handful of projects now operating, while recent macroeconomic challenges are subsiding. Furthermore, demand for offshore wind would continue at the state level, and these factors could make the industry more resilient to headwinds. Executive decisions Trump still could use the executive branch to "stonewall" sectors helped by the IRA in the absence of a repeal, including by influence the timing or distribution of IRA funds, according to Shepheard. He could shift regulators' priorities to new oil and gas development, which, along with other actions, could make resources such as combined-cycle natural gas plants more attractive than renewables. "The extent that renewables and other cleaner energy assets are competing with gas, that'll be the big change from a Trump administration," Shepheard said. At the same time, funding for onshore wind and solar is "relatively safe", and tax credits for hydrogen and carbon capture are on comparably firm ground because of support from the oil and gas industry, Shepheard said. Some companies have expressed cautious optimism that some elements of the IRA, such as the advanced manufacturing tax credit, will survive. The incentive is not only important for the solar supply chain but also offshore wind, as state-level solicitations often require developers to invest in local manufacturing. Republican states in the US southeast have already benefited from new factories springing up on the back of the credits. For example, Enel chose Oklahoma for a new new module plant , First Solar located a factory in Alabama and Qcells has expanded production in Georgia. Moreover, removing that carrot could leave the US solar industry reliant on Chinese companies, which could run afoul of Trump's protectionist trade instincts. Trump's campaign did not respond to multiple requests to elaborate on his policy plans. By Patrick Zemanek Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Canada advances oil and gas GHG cap


24/11/04
24/11/04

Canada advances oil and gas GHG cap

Houston, 4 November (Argus) — Canada is proposing to use a cap-and-trade system to reduce greenhouse gas (GHG) emissions from its oil and gas sector, a long-promised but politically contentious move. The proposed program aims to reduce emissions from the sector by 35pc, compared to 2019 levels, by 2030-32, according to a draft rule published by Environment and Climate Change Canada (ECCC) on Monday. It would cover upstream production activities, both onshore and offshore, including for oil, natural gas and liquified natural gas. After an initial four-year phase-in over 2026-29, entities would then need to meet their emissions obligations over the first 2030-2032 compliance period. While all operators must report emissions, only those producing more than 365,000 b/yr of oil equivalent, equal roughly to 99pc of upstream emissions, would be covered by the trading program. Covered entities would receive free allowance allocations, which would decline in line with their emissions cap. Companies could also buy allowances on the secondary market if needed, use carbon offsets or contribute funds to a decarbonization program. The first three-year compliance period of 2030-31, would be set at 27pc below emissions reported for 2026, which ECCC said would be equivalent to the 35pc target. The federal program will not link with the California-Quebec joint carbon market, known as the Western Climate Initiative, regulators said. ECCC officials stressed that the resulting program would cap emissions, not production, for Canadian oil producers, pushing back at a common criticism from opponents. The federal move will keep the industry accountable to its own promise of net-zero by 2050 and result in a greener and more competitive industry, said Canada Natural Resources Minister Jonathan Wilkinson. "As the world moves to reduce emissions generated by the production and combustion of fossil fuels, oil and gas extracted with the lowest production of emissions will have value in the world," Wilkinson said. But Alberta premier Danielle Smith claimed on Monday that the proposed program violates Canada's constitution. Provinces have exclusive authority over non-renewable natural resource development and the proposal ignores ongoing projects in the province, such as the Pathways Alliance, she said. Canadian Natural Resources, Cenovus, ConocoPhillips Canada, Imperial, MEG Energy and Suncor Energy are involved in the project. The program is a cap on production and will cost the province "anywhere from C$3bn-$7bn ($2.1-5bn)/yr" in absent royalty payments because of a loss of 1mn b/d in production, Smith said, promising future legal challenges against the federal government. "The only way to achieve these unrealistic targets is to shut in our production, I know it, they know it. We are calling them out on it, and they have to stop it," she said. Canada, a major net exporter of oil, has committed to reducing emissions by 40-45pc, compared to 2005 levels, by 2030 and net-zero by 2050. But emissions from the country's oil and gas sector remain an obstacle to meeting those goals. The sector accounts for 31pc, or 217mn metric tonnes, of the country's emissions in 2022 , according to the most recent federal data. Emissions from this sector increased by 83pc from 1990 to 2022. Over the past year Canada's federal government has focused on competitive climate change-related policies, from rolling out investment tax credits for decarbonization technologies to enforcement of the government's new Clean Fuel Regulations. But the road for the Liberal Party-led government to meet the climate goals remains a rocky one ahead of a federal election that must take place no later than October 2025. In September, the Conservative Party, led by Pierre Poilievre, attempted a no confidence measure on prime minister Justin Trudeau's government, fed by discontent around the federal carbon tax. While the motion failed, it highlights the balancing act for the Liberal Party ahead of the election. Trudeau has resisted calls from within his party to cede the field as his popularity waned, to the benefit of Poilievre. ECCC plans to request public comment on the proposal through 8 January 2025 and estimates it will finalize the regulations next year. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more