China to set hard targets for curbing CO2 emissions

: Coal, Crude oil, Electricity, Metals, Oil products, Petrochemicals
24/08/02

China is planning a shift in the way it controls greenhouse gases, specifically carbon dioxide (CO2) emissions, in a move that could support progress in its national emissions trading scheme (ETS), although it is unclear what emissions levels will be targeted.

The country currently measures CO2 against economic growth, or emissions per unit of GDP in what is known as carbon intensity. This allows it to tout progress despite rising emissions so long as these do not rise faster than GDP. But it plans to change this.

Beijing aims to incorporate CO2 indicators and related requirements into national plans and establish and improve local carbon assessments in a goal to improve CO2 statistical accounting. This will affect sectors including the power, steel, building materials, non-ferrous metals, and petrochemicals sectors, according to a state council work plan issued on 2 August.

It will evaluate CO2 emissions of fixed asset investments and conduct product carbon footprint assessments while local governments will implement provincial carbon budgets that could enter trials in 2025. The latter will involve a wide range of industries including oil, petrochemicals, coal-to-gas, steel, cement, aluminium, solar panels manufacturing and electric vehicles, among others.

Beijing is hoping such measures will allow it to set hard targets for CO2 emissions from 2026-2030, although the government will still prioritise intensity control in the meantime in what it calls a ‘dual-control mechanism' — switching from controlling intensity to actual emissions of CO2. Provinces are expected to be allowed to further refine this dual control mechanism, suggesting it will may give localities some leeway to adjust.

China's ETS currently includes only the power sector due in large part to challenges collating accurate CO2 emissions data from other sectors, although it is expected to include other sectors like aluminium into the scheme soon.

China unveiled new regulations for its ETS earlier this year, aiming to crack down on falsification of data. It sees the ETS as a tool to help it meet a goal to peak carbon emissions before 2030 and reach carbon neutrality before 2060.

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25/06/13

WTI crude surges after Israel attack on Iran

Houston, 13 June (Argus) — WTI crude futures jumped by as much as 14pc today after Israel carried out strikes against Iran, sparking concerns over possible disruptions to Middle East oil supplies. WTI prices rose as high as $77.62/bl early, a nearly five-month high, but gave up some of the gains later in the morning. The July Nymex WTI contract was trading near $73/bl at 10:30am ET, about 7pc above yesterday's settlement price. In equity markets, the Nasdaq was down by 1.44pc and the S&P 500 fell by 0.97pc as of 10:30am ET. Iranian state media reported a first wave of strikes over the capital city, Tehran, at around 03:20 local time (23:50 GMT). Images and videos published by the state broadcaster showed residential towers that had been struck in the attack, causing numerous casualties. The US said it was not involved in the Israeli strikes and advised Tehran not to retaliate against US personnel in the Middle East. Iran's [oil infrastructure appeared to be unscathed from the strikes}(https://direct.argusmedia.com/article/2698642), according to Iran's state news agency Irna and Argus sources. But the attacks have raised the prospect of a broader escalation in the world's largest oil-producing region. Israel said the strikes targeted military facilities and infrastructure linked to Iran's nuclear program. It described the operation as an act of self-defense, claiming Iran is "closer than ever" to acquiring a nuclear weapon. Iranian officials said talks with US officials over its nuclear program scheduled for this weekend can no longer take place . Iran informed the International Atomic Energy Agency (IAEA) that its Bushehr nuclear power plant was not targeted and that no increase in radiation levels had been observed at its Natanz site, IAEA director general Rafael Grossi said today. The attacks have raised the risk of disruption to shipping in the region, prompting concerns over rising freight rates, insurance costs and vessel safety. Market participants warn that freight rates could surge if the conflict drags on or if Iran launches a retaliatory strike. The region includes one of the world's most critical oil and shipping corridors, centered on the Strait of Hormuz — a chokepoint for about a fifth of global oil supply. Ships operating in or transiting the Mideast Gulf and the Strait of Hormuz could face higher costs and delays. "Insurance companies could raise the cost of additional war risk premiums (AWRP) if the conflict continues for a long time," a shipbroker said. Other freight market participants echoed this view. "Mideast Gulf freight rates could spike because owners will avoid going there," another source said, adding that shipowners are likely to err on the side of caution. All Egyptian urea plants have stopped production because of a drop in natural gas flows from Israel, with suppliers withdrawing urea offers. Greek independent oil and gas producer Energean has suspended production from its Karish gas field offshore Israel in line with an Israeli government order after the strikes. Several international airlines have diverted or cancelled flights. Iran's civil aviation authority announced that the airspace over Tehran will be closed "until further notice" following the initial strikes, and all flights have been grounded across the country's airports. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

CBAM to push renewable power export price above lignite

25/06/13

CBAM to push renewable power export price above lignite

London, 13 June (Argus) — Exports from renewable power production from Energy Community constituent states to the EU could cost more per MWh than exports from lignite-fired generation under the current implementation of the EU's carbon border adjustment mechanism (CBAM), Energy Community CBAM lead Peter Pozsgai said at the Energy Trading Central and South Eastern Europe (ETCSEE) conference in Vienna on 12 June. CBAM will be applied to all cross-border electricity flows from Energy Community states, including power generated from renewables. Producers will be able to deduct any payments made into a regional carbon tax or emissions trading system (ETS) equivalent — a key pillar of market coupling as laid out in 2022's energy integration package. But renewable energy producers will not pay into a regional carbon tax or ETS equivalent, and thus will not be able to deduct this carbon tax from the CBAM applied to all electricity exports. In effect, exports from renewable sources will be priced higher than those from lignite-fired plants in the Western Balkans six — Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro and Serbia. Pozsgai "hopes this can be amended" and emphasised that the Energy Community and the European Commission will hold a stakeholder meeting on 1 July with the aim of providing more clarity on CBAM's implementation. Electricity is treated separately from other physical commodities under the CBAM legislation. Carbon quantity will be based on average country-wide emissions rather than on individual plant efficiency. Each country's CO2 emissions factor will be calculated as the weighted-average emissions from all fossil fuel-fired generation in the country and is higher than the indirect emissions factor applied to other goods that are subject to CBAM when they enter the EU. This weighted-emissions factor will be applied to all cross-border power exports, regardless of generation source. CBAM loomed over discussions at ETCSEE, with the regulation being discussed on every panel over the two-day event. Market participants already have observed lower forward liquidity as uncertainty mounts on how CBAM will be implemented and expressed concern about taking financial positions while CBAM implementation evolves. But trading firms and regulators alike expressed a desire for market coupling, while acknowledging that CBAM's implementation instead may hinder regional market integration. "Regional integration is hugely important for security of supply and efficiency and should move forward regardless of CBAM, and if they meet requirements, there should be discussions of [CBAM] being lifted," according to the European Commission's deputy head of unit of the Directorate-General for Energy, Andras Hujber. "Price sensitivity will increase with the implementation of CBAM," Hungarian state-owned energy firm MVM chief commercial officer Laszlo Fritsch said. Provisions in the 2022 integration package provided a pathway to a four-year exemption for Energy Community states, provided they complete market coupling measures before CBAM's scheduled start on 1 January 2026. But no Energy Community countries have met these requirements yet. Serbia will be the first country to couple with EU neighbours Hungary and Romania in the fourth quarter of 2026, but it is unclear whether a CBAM exemption will be granted from that point forward or applied retroactively. European power transmission system operator association Entso-E earlier this week asked the EU to postpone the definitive period of CBAM to provide electricity markets with more time to adjust. By Annemarie Pettinato Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Iran suggests upcoming nuclear talks with US are off

25/06/13

Iran suggests upcoming nuclear talks with US are off

Dubai, 13 June (Argus) — Nuclear negotiations between Iran and the US scheduled for Sunday, 15 June, appear to be off following the Israeli air and missile strikes on Iran in the early hours of today. The talks were formally confirmed by mediators Oman on 12 June as taking place in the Omani capital, Muscat. With the mood around the negotiations having taken a turn for the worse this past week, the new round would provide an opportunity for the sides to re-establish their demands, and re-evaluate progress. The key outstanding issue is Iran's ability to enrich uranium, and thus, retain a theoretical path to nuclear weapons. Tehran insists it should be allowed to retain its civilian nuclear enrichment program to supply fuel to nuclear power plants, while US administration officials now appear bent on allowing zero enrichment. The Israeli attacks , which came against US President Donald Trump's advice, appear to have thrown a wrench into the US' efforts to engage Iran diplomatically. Speaking on state television today, Iranian parliament's national security and foreign policy committee member Alaeddin Boroujerdi said the attacks on Iran meant the talks with the US now cannot take place. "With respect to the talks, which we entered at America's request… we were on the verge of a sixth round," he said. "But with these latest developments, I can't see a sixth round taking place." Iran's foreign ministry, which has been leading the discussions for the Iranian side, has yet to explicitly comment on the status of the talks. Neither has Oman. On the attacks, Tehran's Guardian Council, a powerful supervisory body tasked with overseeing legislation, vowed to "give a crushing and tooth-breaking response to these criminals of history in such a way that it will serve as a less on to the enemies of Islam, and the arrogant powers of the world." Iran sent a barrage of drones towards Israel, which appeared to trigger a second round of Israeli strikes on several cities, including Shiraz in the south, Tabriz in the northwest, and Kermanshah in the west. Trump calls for deal The Trump administration has said it was not involved in the Israeli strikes, and warned Iran not to retaliate against its personnel in the Middle East. But it did appear to have at least advance warning of the imminent attack, after ordering non-essential US personnel in Iraq and Israel to evacuate. Trump today again called on Iranian leaders to "make a deal" or face even more "death and destruction" from the next waves of Israeli attacks. "I gave Iran chance after chance to make a deal… but no matter how hard they tried, no matter how close they got, they just couldn't get it done," Trump said on his Truth Social media platform. "There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacked being even more brutal, come to an end. Iran must make a deal before there is nothing left." By Nader Itayim and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Iran’s oil infrastructure untouched by Israeli strikes

25/06/13

Iran’s oil infrastructure untouched by Israeli strikes

Dubai, 13 June (Argus) — Iran's oil infrastructure emerged unscathed from Israeli air and missile strikes in the early hours of 13 June, according to Iran's state news agency Irna and Argus sources. But the attacks have raised the prospect of a broader escalation in the world's largest oil-producing region. Israel said the strikes targeted military facilities and infrastructure linked to Iran's nuclear programme. It described the operation as an act of self-defence, claiming Iran is "closer than ever" to acquiring a nuclear weapon. The US denied involvement and urged Tehran not to retaliate against US personnel in the region. Iran informed the International Atomic Energy Agency (IAEA) that its Bushehr nuclear power plant was not targeted and that no increase in radiation levels had been observed at its Natanz site, IAEA director general Rafael Grossi said today. Oil operations remain unaffected. Activities at Iranian facilities are continuing "without interruption and in a stable manner," Irna reported, citing state-owned refiner NIORDC. The operator of Iran's 700,000 b/d Abadan refinery said the plant is running at full capacity with no disruption, according to the state news agency Shana. The 110,000 b/d Tabriz refinery — located near one of the reported strike zones — was not hit and "operations resumed as normal," an official at the plant told Argus . No other Iranian oil or gas facilities have been targeted so far, Argus understands. Crude futures surged in early Asian trading on news of the strikes, rising by as much as 13pc before paring gains. As of 09:00 GMT, the front-month August Ice Brent contract was trading at $74.30/bl, down from an earlier high of $78.50/bl. The absence of physical supply disruption helped ease immediate concerns, but the risk of a wider conflict remains high. In response to the strikes, Iran launched around 100 drones toward Israeli territory. "Israel is working to intercept [the drones]," Israeli military spokesperson Effie Defrin said. Israeli media later reported that all drones were intercepted. The fallout from the strikes has affected regional gas operations. Greek independent Energean suspended production from its Karish gas field offshore Israel following a government order issued after the Israeli attacks. Security concerns in key shipping lanes were already rising ahead of the strikes. On 12 June, the Joint Maritime Information Centre (JMIC) warned that the "threat will be elevated until further notice for vessels operating in or transiting the Arabian Gulf, strait of Hormuz, and Northern Arabian Sea". Any disruption to the strait of Hormuz — a chokepoint for nearly a fifth of global oil flows — could have immediate and severe consequences for global crude supply and pricing. The Yemen-based Houthi movement, part of Iran's regional proxy network known as the ‘Axis of Resistance', condemned the Israeli strikes and affirmed "Iran's right to carry out a deterrent response." It declared support for Iran's "legitimate right to respond to the aggression." So far, however, neither the Houthis nor other Iran-aligned groups — including Lebanon's Hezbollah and Shia militias in Iraq — have taken retaliatory action. Israel has significantly weakened the Axis of Resistance since the October 2023 Hamas-led attack, eliminating most of Hamas' leadership and key Hezbollah figures. Israel and Iran also exchanged missile and drone strikes in 2024. By Bachar Halabi, Yong Li Tng and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

European products markets jump on Israel-Iran attacks

25/06/13

European products markets jump on Israel-Iran attacks

London, 13 June (Argus) — European refined product prices rose sharply in early trading on 13 June as market participants reacted to Israel's overnight air and missile strikes on Iran. At 10:29, non-oxy gasoline barges were assessed 3.5pc higher from the previous close at a volume-weighted average (VWA) of $728/t. Front-month Ice July gasoil futures were trading 6pc higher at $683.75/t. Israel launched the strikes in the early hours of Friday local time , targeting military infrastructure linked to Iran's nuclear programme. Israeli officials described the operation as an act of self-defence, warning that Iran is now closer than ever to acquiring a nuclear weapon. The escalation has raised concerns over potential supply disruptions from the Mideast Gulf, a key source of diesel and jet fuel for Europe. Iran could move to close the Strait of Hormuz — a critical chokepoint for global energy flows — which would halt exports of ultra-low sulphur diesel and jet from regional producers such as Kuwait, the UAE and Saudi Arabia. A naval blockade could also restrict LNG shipments from Qatar, tightening gas supply and raising operating costs for European refiners. Despite the sharp rise in flat prices, some market participants questioned the sustainability of the rally. Front-month gasoil futures had already eased from a peak of $706.50/t reached during Asian trading hours. A Singapore-based middle distillates trader said many participants were stepping back to "watch the market closely". A European diesel trader also expressed doubt over how long the gains would hold. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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