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US surprised about Cop troika 'vision' on finance, NDCs

  • : Emissions
  • 24/03/21

The US said today that some of the wording in the "vision" set out by the Cop presidencies Troika — comprising the UN Cop 28, 29 and 30 climate summit hosts the UAE, Azerbaijan and Brazil — could be "highly prejudicial" to ongoing negotiations on a new global finance goal for developing countries.

US deputy special envoy for climate Sue Biniaz, taking part in the Copenhagen Climate Ministerial today, said she was "quite surprised" with some aspects of the letter, setting out the "vision", sent by the group of three presidencies to all parties to the UN Framework Convention on Climate Change (UNFCCC).

The troika was created earlier this year and has been welcomed by countries in the Cop process to push forward crucial issues such as setting more ambitious Nationally Determined Contributions (NDCs) — climate goals — for 2025 and climate financing.

"We don't agree with what the letter calls the 'reframing of ambition', and we don't think it's true to the Paris Agreement or to the UAE Consensus [the outcome of Cop 28]," the US delegate said today. She added that the letter suggests that this year's "focus on NDCs should be all about support, and maybe even that support is a pre-condition to NDCs" and "defines 'high ambition NDC' for developed countries as one that includes finance for developing countries". She said that this was "inconsistent with the Paris agreement".

The vision published today is centered on an "aim to raise and reframe ambition for the development process of the next round of NDCs", focusing on supporting parties, mobilising technical and financial resources to "stimulate ambitions" and "utilising existing mechanisms, processes and stakeholders, within and outside the UN system, to channel... finance".

The letter also said that "high ambition NDCs should include ambition in finance, technology and capacity-building resources to developing countries, in the case of NDCs from developed country-parties". Finance, technology and capacity-building are often referred to as 'means of implementation' in the UNFCCC process.

Belgium's climate minister Zakia Khattabi, representing the EU at the opening of the ministerial, expressed similar concerns, saying that the bloc does not support "reframing NDCs as vehicles for the provision of means of implementation".

This comes as a new climate finance goal — the NCQG — following on from the $100bn/yr goal by 2025 must be decided at Cop 29 in November.

"We appreciate the efforts of the Troika and encourage you to focus on delivering the UAE consensus. We strongly believe that it must be delivered, not reinterpreted, fulfilled, not renegotiated," UK energy security and net zero minister Graham Stuart said.

Cop 28 president Sultan al-Jaber told delegates at the ministerial that the letter advocates "strongly for early submission of high ambition NDCs" and that the UAE, Azerbaijan and Brazil committed to submit NDCs aligned with the 1.5°C temperature goal of the Paris agreement by 2025.

The US delegate also pointed out that the letter "omits the key paragraph of the UAE consensus" on economy-wide NDCs including all greenhouse gases (GHG). But al-Jaber reiterated today that NDCs should include these elements, adding that countries should put policies in place to deliver emission reductions of 60pc compared with 2019 levels, before 2035.

It has a commitment from troika countries to submit their own 1.5°C-aligned NDCs by early 2025. The three Cop hosts said they will convene high-level meetings focusing "on the quantity and quality of support needed by parties to ensure NDCs can deliver 1.5°C-aligned just climate transitions."

Developing countries have long called for meaningful climate finance to allow them to implement their emissions reduction plans, but disagreement over funding sources could continue to hinder negotiations going into Cop 29.


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25/06/13

Exomad Green starts building Bolivian biochar plant

Exomad Green starts building Bolivian biochar plant

London, 13 June (Argus) — Bolivian biochar producer Exomad Green has started building a 128,000 t/yr biochar production plant in the country's Guarayos region, which it expects to achieve 320,000 t/yr of CO2 removal (CDR) once fully operational. The facility will be developed in two phases. Half of the total capacity will be developed in phase one, which is scheduled to be fully operational by mid-2026, with the second phase expected to start in 2026. Exomad did not provide a timeline for the scheduled end of the latter phase. The firm plans to distribute biochar to indigenous communities and farmers to restore degraded soils, enhance food production and improve resilience to climate stress, through its "biochar donation program" it said, without specifying what share of the end product would be allocated for this program. Exomad signed a 10-year biochar CDR agreement with technology giant Microsoft to remove 1.24mn t of CO2 in late May. The contract has embedded digital monitoring, reporting and verification carried by Germany-based Carbonfuture to enable third-party verification and certification under crediting platform Puro.earth's biochar methodology. The parties had previously also signed a deal for 32,000t of biochar CDR credits in December 2023. Exomad estimates it had sequestered over 120,000t of CO2 by April through its biochar operations. The firm already operates two biochar plants in Concepcion and Riberalta, each with 60,000 t/yr of capacity. The company uses hardwood forestry residues as feedstock to produce biochar with up to 86pc fixed carbon content through pyrolysis. Exomad Green is a unit of Exomad, which is the largest wood exporter in Bolivia. By Erisa Senerdem Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia allows emissions reporting for biomethane, H2


25/06/13
25/06/13

Australia allows emissions reporting for biomethane, H2

Sydney, 13 June (Argus) — The Australian government will enable companies to report scope 1 emissions from the consumption of biomethane and hydrogen, which will need to be backed by eligible renewable gas certificates, it announced today. Companies will be able to prove that the gas they receive from the natural gas network and consume in a reporting year contains an amount of renewable gas, as represented by renewable gas certificates retired or completed by them or on their behalf, adjusted for losses, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) said on 13 June. The new product guarantee of origin (PGO) certificates registered under the guarantee of origin (GO) scheme, as well as the renewable gas guarantee of origin (RGGO) certificates issued under the GreenPower Renewable Gas Certification (RGC), will both be allowed. Any gas sourced from the natural gas network that is not covered by the new certificate-backed loss-adjusted amount must be reported as natural gas, the DCCEEW said. The changes are part of updates to the National Greenhouse and Energy Reporting (NGER) scheme, which is used to measure and report greenhouse gas (GHG) emissions and energy production and consumption. These are the latest changes following the implementation of the recommendations made at the end of 2023 by Australia's Climate Change Authority (CCA), which reviews the NGER scheme every five years. The market-based reporting allowing companies to report the scope 1 emissions benefits from their renewable gas purchases will start from 1 July 2025, and be applicable from the July 2025-June 2026 financial year onwards. They will affect NGER scheme reports to be submitted by corporations by 31 October 2026. The updates also include amendments to support the reclassification of hydrogen as a fuel type. Hydrogen was previously classified in the NGER scheme as an energy commodity. The DCCEEW will monitor the uptake of biomethane as a feedstock for ammonia and hydrogen production and may revisit some technical rules in future annual NGER scheme updates, it said. Potential impact on oil and gas facilities Other changes announced on 13 June include updates to the emission factors used in two methods for gas flared in oil and natural gas operations. Some submissions to a public consultation raised concerns about the potential overestimation of methane emissions resulting from the assumption that flare gas is 100pc methane, and implications of the proposed emission factors on facilities covered by the safeguard mechanism, the DCCEEW said. The Clean Energy Regulator has the discretion to vary the facility's baseline to accommodate the regulatory change if the revised factors have a material impact on emissions reported by a facility covered by the safeguard mechanism, it said. Facilities under the oil and gas extraction sector received a combined 3.07mn safeguard mechanism credits (SMCs) in the July 2023-June 2024 financial year as their covered scope 1 emissions were below their baselines. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EPA draft biofuel blend mandate expected Friday: Update


25/06/12
25/06/12

EPA draft biofuel blend mandate expected Friday: Update

Updates with changes throughout New York, 12 June (Argus) — President Donald Trump's administration plans to release draft biofuel blend mandates for 2026 and 2027 on Friday, according to three people familiar with the matter. The draft quotas, in addition to a separate final rule cutting cellulosic biofuel mandates for last year, exited White House interagency review on Wednesday, the last step before major regulations can be released. The Trump administration has meetings with legislative stakeholders on Friday morning ahead of the public release, three people said. Previously scheduled meetings through the end of the month as part of the interagency review process appear to have been cancelled, another signal that the rules' release is imminent. The Environmental Protection Agency (EPA) has said it wants to get the frequently delayed Renewable Fuel Standard program back on its statutory timeline, which would require volumes for 2027 to be finalized before November this year. Any proposal will have to go through the typical public comment process and could be changed. EPA said the rules will be posted on its website once they are signed by Lee Zeldin, the agency's administrator. A coalition of biofuel-producing groups and feedstock suppliers, including the American Petroleum Institute, has pushed EPA to set a biomass-based diesel mandate of 5.25bn USG for 2026, hoping that a record-high target will support biorefineries that have struggled this year. Many plants have idled or run less recently, as uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and tariffs that up feedstock costs all hurt margins. US senator Chuck Grassley (R-Iowa) said Thursday that closed biodiesel plants in his state needed a 5.25bn mandate to reopen. Meanwhile, a coalition of independent and small refiners that have long lamented the costs of the program wrote to EPA this week asking for less-aspirational future mandates, including for the conventional category mostly met by corn ethanol. RIN markets were volatile today, trading higher in the morning before slipping lower on fears the mandates would not meet industry expectations. Current year ethanol D6 RINs traded as high as 99¢/RIN before falling as low as 90¢/RIN. Current year biomass-based diesel D4 RINs ended Thursday at 102.5¢/RIN, equal to their close the prior day. Small refinery exemptions loom Zeldin told a House subcommittee last month the agency wanted "to get caught up as quickly as we can" on a backlog of small refiner requests for program exemptions. Courts took issue with EPA's exemption policy during Trump's first term and again during President Joe Biden's tenure, leaving officials now with dozens of waiver requests covering 10 compliance years still pending. It is unclear whether the rule will provide much clarity on EPA's plans for program waivers, but biofuel groups have worried that widespread exemptions would curb demand for their products. The price of Renewable Identification Number (RIN) credits used for program compliance have been volatile this year on rumors about these exemptions, which EPA has called market manipulation. In both the Trump and Biden administrations, EPA estimated future exempted volumes when calculating the percentage of biofuels individual refiners had to blend, effectively requiring those with obligations to shoulder more of the burden to meet high-level volume targets. The agency could continue that approach, but it would be more legally treacherous for the agency to similarly "reallocate" exempted volumes from past years into future standards, lawyers said. EPA by law also has to consult on exemption decisions with the Department of Energy, which a person familiar said was "still going through the scoring process" for assessing some small refinery applications, making quick resolution of the issue unlikely. Unresolved court cases, including a Supreme Court case about the proper venue for small refinery waiver disputes, could also give regulators pause until they know more. Tax credit clarity expected soon Senate committees this week have been releasing their versions of key parts of the major Republican spending bill, and the Senate Finance Committee is expected to do so soon, potentially as early as Friday according to people familiar. The incentive is crucial for biofuel production margins and thus for the viability of EPA mandates too. The version that passed the House last month would extend the "45Z" clean fuel production credit through 2031, bar regulators from considering indirect land use emissions, and restrict eligibility to fuels from North American feedstocks. While various ideas have circulated this year, lobbyists expect the Senate to preserve the general structure of the credit, which throttles benefits based on carbon intensity, rather than reinvent a new subsidy. Still, some Republicans have expressed concern with the House's phaseout of tax credit "transferability", which benefits smaller companies without much tax liability. And major oil refiners with renewable diesel plants reliant on Asian used cooking oil and South American tallow have lobbied for more flexibility around foreign feedstocks. Any changes that up the credit's costs could be controversial too among conservatives worried about the bill's impacts on a mounting federal budget deficit. And the complex tax credit will ultimately need final regulations from the US Department of Treasury clarifying eligibility. At a Senate hearing Thursday, Treasury secretary Scott Bessent said that the Trump administration planned to implement the credit in a way to "not allow for foreign actors to have a back door into the program." By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil backs R32mn to counter wildfires in Amazon


25/06/12
25/06/12

Brazil backs R32mn to counter wildfires in Amazon

Sao Paulo, 12 June (Argus) — Brazil opened a public call to finance R32mn ($5.7mn) to combat wildfires in the Amazon rainforest and in the central-western Pantanal biome. The resources come from Brazilian environment ministry's FNMA fund and the federal collective rights' fund FDD, which is under the justice and public security ministry's umbrella. Projects submitted must be between R800,000-1mn and must be finished in up to two years, according to the government. Projects regarding machinery, equipment and fire-adapted light vehicle acquisitions are eligible. The investment does not comprise construction projects. The initiative aims to counter environmental damages from wildfires. Brazil is working to eliminate deforestation — both legal and illegal — by 2030, in an effort to meet its emissions reductions targets under the Paris climate agreement. Deforestation is one of Brazil's flagship issues for the UN Cop 30 summit , which it will host in northern Para state in November this year. The Amazon biome lost over 774,000ha to wildfires in the first quarter, a 72pc drop from a year earlier, while it accounted for almost 52pc of burnt areas in March. Burnt areas in the Pantanal biome, or tropical wetland, fell by 86pc in the first quarter to 10,900 hectares. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EPA readies new biofuel blend mandate proposal


25/06/12
25/06/12

EPA readies new biofuel blend mandate proposal

New York, 12 June (Argus) — President Donald Trump's administration is close to releasing two regulations informing oil refiners how much biofuel they must blend into the conventional fuel supply. The two rules — proposed biofuel blend mandates for at least 2026 and most likely for 2027 as well as a separate final rule cutting cellulosic fuel mandates for last year — exited White House review on Wednesday, the last step before major regulations can be released. Previously scheduled meetings as part of the process appear to have been cancelled, another signal that the rules' release is imminent. The Environmental Protection Agency (EPA) has said it wants to get the frequently delayed Renewable Fuel Standard program back on its statutory timeline, which would require volumes for 2027 to be finalized before November this year. Any proposal will have to go through the typical public comment process and could be changed. A coalition of biofuel-producing groups and feedstock suppliers, including the American Petroleum Institute, has pushed EPA to set a biomass-based diesel mandate of 5.25bn USG for 2026, hoping that a record-high target will support biorefineries that have struggled this year. Many plants have idled or run less recently, as uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and tariffs that up feedstock costs all hurt margins. EPA administrator Lee Zeldin also told a House subcommittee last month the agency wanted "to get caught up as quickly as we can" on a backlog of small refiner requests for program exemptions. Courts took issue with EPA's exemption policy during Trump's first term and again during President Joe Biden's tenure, leaving officials now with dozens of waiver requests covering multiple compliance years still pending. It is unclear whether the rule will provide clarity on EPA's plans for program waivers — including whether the agency will up obligations on other parties to make up for exempt small refiners — but biofuel groups have worried that widespread exemptions would curb demand for their products. The price of Renewable Identification Number (RIN) credits used for program compliance have been volatile this year on rumors about these exemptions, which EPA has called market manipulation. RIN trading picked up and prices rose on the news as Thursday's session began. Bids and offers for 2025 ethanol D6 RINs, the most prevalent type currently trading, began the day at 96¢/RIN and 98¢/RIN, respectively. Deals were struck shortly after at 98¢/RIN and 99¢/RIN, with seller interest at one point reaching 100¢/RIN — well above a 95.5¢/RIN settle on Wednesday. Biomass-based diesel D4 RINs with concurrent vintage followed the same path with sellers holding ground as high as 107¢/RIN. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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