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Brazil pushes climate leadership in Davos

  • : Agriculture, Biofuels, Electricity, Emissions
  • 25/01/21

Brazil is looking to build an "ecological legacy" and called on richer countries to invest in its growing sustainable markets as it prepares to host the UN Cop 30 climate summit later this year, government representatives said at the World Economic Forum (WEF) in Davos.

"The last two Cop editions were held in countries where most of their economy relies on oil exploration," northern Para state governor Helder Barbalho said at WEF today. "For the first time this year, we will have the international community debating climate change and economy while standing in the largest rainforest in the world."

Brazil will host Cop 30 in November in Para's capital Belem, at the mouth of the Amazon rainforest. It tapped veteran diplomat Andre Aranha Correa do Lago, an advocate of sustainable development, to preside over the summit.

Also speaking at WEF, Brazil's supreme court president Luis Roberto Barroso focused on government efforts to prevent environmental crimes and regulate new sustainable market.

Throughout President Luiz Inacio Lula da Silva's third administration — which began in 2023 — Brazil approved its carbon credit trade market as well as offshore wind generation and biofuels regulation. Barroso said that the Brazilian judiciary branch, along with the legislative and executive power, established ecological and landownership matters as major priorities.

Para's governor touted its major achievements from 2019-2024. The state is Brazil's former largest largest greenhouse gases (GHG) producer, but has reduced its emissions.

"People used to think that, in order to increase income, we should destroy our forests and open space for other activities," Barbalho said. "Today, we know how to take advantage of our forests to create sustainable jobs, new ways of income and to diversify our economy while preserving current flora and fauna."

Although Para increased its cattle raising by 3mn from 2021-2024, it cut deforestation in Amazonian lands by 42pc because of sustainable practices and financial incentives for farmers to preserve native vegetation, Barbalho added.

The state is also focusing on the carbon credit market, the governor said. Recently, Para sold carbon credits equivalent to over 12mn metric tonnes of CO2 , raising $1bn to be used in continuous emission-reducing practices thanks to state-issued policies.

New growth

Still, Brazil cannot meet its previous Cop pledges with only its current forests and without reforestation. Almost 50pc of Brazil's GHG emissions came from land-use and forestry as of January 2024.

In November, Para created Brazil's first forest restoration concession, which will allow companies to participate in an open call to reforest and restore the damaged area of the Triunfo do Xangu environmental reserve. Once the restoration is done, the company will generate revenue through carbon credits from the recovered area.

Brazil — which saw increased deforestation during president Jair Bolsonaro's administration in 2019-2022has been targeting reforestation as part of its efforts to meet its emissions-reduction target.

Brazil's mines and energy minister Alexandre Silveira is also in Davos and seeking to attract investment in renewable energy-fueled data centers in Brazil, the ministry told Argus. The data center plan is under development and will be concluded by the end of the first half.

Data centers consume up to 2pc of all power generated in the world and are responsible for 0.3pc of all CO2 emissions, according to the US International Energy Agency.

But Barroso ended the panel saying that "climate change deniers made a triumphant return."

On Monday, US president Donald Trump pulled the US out of the Paris Climate agreement. "I'm immediately withdrawing from the unfair, one-sided Paris climate accord rip-off," Trump said at a rally later in the day. "The US will not sabotage their own industries while China pollutes with impunity."

Trump is scheduled to speak at Davos on 23 January.

Throughout his campaign, Trump repeated the slogan "drill, baby, drill" as part of his support for fossil fuel production in the US.


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25/02/07

Trump planning rollout of 'reciprocal' tariffs

Trump planning rollout of 'reciprocal' tariffs

Washington, 7 February (Argus) — President Donald Trump is considering announcing "mostly reciprocal tariffs" on an undisclosed number of countries early next week, in a possible shift from a campaign plan to impose universal tariffs of 10-20pc against all imports to the US. Trump did not provide specifics on the idea, but said he would probably have a meeting on 10 or 11 February before making an announcement. The potential rollout of the reciprocal tariffs appears likely to take place after China's planned 10 February date to start collecting a 10pc tariff on crude, coal and LNG from the US that Beijing imposed in response to a 10pc blanket tariff that Trump has placed on Chinese imports. "I think that's the only fair way to do it," Trump said of his plan to "probably" pursue reciprocal tariffs. "That way, nobody's hurt. They charge us, we charge them. It's the same thing. And I seem to be going in that line, as opposed to a flat fee tariff." Trump has said he views tariffs — which he says is his "favorite word" — as a virtually cost-free way to raise revenue that will cut the US trade deficit and boost domestic manufacturing, without raising prices for goods in the US. But earlier this week, Trump delayed his plan to place an across-the-board 25pc tariff on Canada and Mexico just hours before it was set to take effect, as stock markets began to plunge on the threat of the start of a damaging trade war between the US and its two largest trading partners. The vast majority of economists say across-the-board tariffs are an inefficient way of raising revenue, with costs that would fall the hardest on low-income and middle-income US consumers already reeling from years of inflation. US Senate minority leader Chuck Schumer (D-New York) on 2 February said kicking off a tariff war with Canada and Mexico "makes 100pc no sense" and would raise costs for US consumers. Trump discussed his reciprocal tariff idea today during a press conference with Japan's prime minister Shigeru Ishiba. Trump said he wants to "get rid of" the US' trade deficit with Japan he estimates is $100bn/yr, primarily by selling the country US oil, LNG and ethanol. Trump said he also spoke with Ishiba about efforts related to the "pipeline in Alaska", an apparent reference to the proposed 20mn t/yr Alaska LNG project, which is expected to cost more than $40bn and would require building a natural gas pipeline across Alaska. Ishiba said it was "wonderful" that Trump had lifted a temporary pause on LNG licensing on his first day in office, and said Japan was interested in purchasing US LNG, ethanol, ammonia and other resources as a way to cut down on the US trade deficit with Japan. "If we are able to buy those at a stable and reasonable price, I think it would be a wonderful situation," Ishiba said through a translator. Japan is keen to increase its overall investment in the US to $1 trillion, Ishiba said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Crude Summit: P66 eyes US northeast renewables: Update


25/02/07
25/02/07

Crude Summit: P66 eyes US northeast renewables: Update

Adds info on SAF, other details. Houston, 7 February (Argus) — US refiner Philips 66 is weighing producing renewable fuels in the northeastern US if more states adopt low carbon fuel standards. The company is considering producing renewables at its 258,500 b/d Bayway refinery in Linden, New Jersey, if state mandates are approved and implemented, vice president of renewables Suresh Vaidyanathan said on the sidelines of the Argus Global Crude Summit Americas in Houston, Texas, on Friday. The renewables could be processed along with traditional fuels at the refinery. Bayway is the largest refinery on the US Atlantic coast. Phillips 66 could possibly produce renewable diesel or sustainable aviation fuel (SAF) at the refinery, depending on the specifics of the state laws, Vaidyanathan said. The company said it is "constantly evaluating all of our assets for lower carbon opportunities." New Jersey senators last year proposed legislation to establish what could be the first US east coast clean fuels mandate. In New York, bills to establish a clean fuel standard now count the majority of the state assembly and senate as co-sponsors. But similar proposals have stalled in prior years, in part because some progressive lawmakers worry about potentially boosting biofuels at the expense of electrification. New York state agencies are separately studying the potential impacts of a "clean transportation standard" but have given no indication of when they could release their findings. Phillips 66's Rodeo renewables plant in California reported throughputs of 42,000 b/d in the fourth quarter of 2024 after beginning full operations last year. Phillips 66 said today it is producing SAF at the Rodeo refinery. United Airlines announced in December that it agreed to buy SAF from Phillips 66's Rodeo facility as soon as the product came online. Phillips 66's renewable fuels business logged a $28mn profit in the fourth quarter of 2024 driven by higher margins at the Rodeo complex and stronger international results. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ecuador vows to cut GHG emissions by 7pc in 2035


25/02/07
25/02/07

Ecuador vows to cut GHG emissions by 7pc in 2035

Quito, 7 February (Argus) — Ecuador committed to reduce its greenhouse gas emissions (GHG) by 7pc by 2035 compared with the baseline projected emissions for that year, it said in its second Nationally Determined Contributions (NDC) this week. The reduction is the equivalent to 8.8mn metric tonnes (t) of CO2 equivalent (CO2e). Ecuador emitted 88.3mn t of CO2e in 2022 mainly from the energy sector (47pc), including transportation and power generation; land use (29pc); agriculture (13pc); waste management (6pc) and industrial processes (5pc). If the current trend projected since 2010 continues without any actions, Ecuador's annual emissions will reach almost 130mn t of CO2e in 2035. But by applying mitigation measures such as more renewable energies, sustainable methods of production and mobility, with domestic funding, the emissions will be reduced to about 121.2mn t of CO2e, for a 7pc cut. With more financial support from the international community, Ecuador aims to reduce its GHG emissions by another 8 percentage points. That would cut another 10.6mn t of CO2e, for a total reduction of 15pc and emissions of 110mn t of CO2e in 2035. The mitigation measures will cost Ecuador about $6.5bn. In 2019, Ecuador launched its first NDC and set the goal to reduce GHG emissions by 9pc annually from 2020-2025. But it missed the goal, mainly because the 2020 pandemic generated an economic crisis that cut funds to implement mitigation measures. By Alberto Araujo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s Orica mulls selling safeguard carbon units


25/02/07
25/02/07

Australia’s Orica mulls selling safeguard carbon units

Sydney, 7 February (Argus) — Australian chemicals and explosives firm Orica is eligible to receive safeguard mechanism credits (SMCs) for the July 2023-June 2024 compliance year and is now considering options for the units, including potential sale to a third party, it told Argus . Orica did not disclose how many SMCs it was eligible to receive or whether the units have already been issued. It has two facilities under the scheme — Kooragang Island in New South Wales (NSW) and Yarwun Nitrates near the Queensland state city of Gladstone. SMCs are issued if a facility reports scope 1 greenhouse gas (GHG) emissions below its baseline. Orica said in November that it did not expect a requirement to surrender Australian Carbon Credit Units (ACCUs) for the July 2023-June 2024 compliance year. It still does not expect such a requirement, it told Argus on 6 February. Both the company's facilities are registered as carbon projects, and Orica received a total of nearly 600,000 ACCUs from the Kooragang Island decarbonisation project last year . The credits are generated as a result of tertiary emissions abatement reactors installed across three nitric acid plants at the facility, which includes ammonia and ammonium nitrate plants. "In line with Orica's carbon market strategy, we anticipate holding originated ACCUs for future safeguard mechanism compliance obligations," the company told Argus on 6 February. SMC data expected for early March The Clean Energy Regulator (CER) earlier this week said it issued the first ever SMCs into eligible accounts in the new registry that will replace the Australian National Registry of Emissions Units (ANREU). It did not say how many SMCs have been issued so far but noted that further issuances are likely this month. "The CER will publish the 2023-24 safeguard data, including facility-level information about SMC issuances, by 15 April 2025," it told Argus on 7 February. "The CER will also start to include SMC observations in its quarterly carbon market reports." The quarterly report for the fourth quarter of 2024 is expected to be published in early March, the regulator added. The main data for that period was published in late January, showing ACCU supply and demand at new highs . Market participants said no SMC trades had been seen so far, although some companies have been exploring potential sales. Now that the first SMCs have been issued, account holders with SMCs in their accounts are already able to transfer the units between accounts, the CER noted. Australia's Climate Change Authority (CCA) said late last year that 60 out of 215 facilities covered by the safeguard mechanism reported scope 1 GHG emissions below their baselines and could be eligible to apply for a total estimated 9.2mn SMCs , far higher than previously estimated, impacting market sentiment for ACCUs. Spot prices for generic ACCUs ended the week below A$35 ($22), down slightly on the week and compared to levels close to A$43 in mid-November. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ethanol prices up on uncertainty, low margins in Feb


25/02/06
25/02/06

Ethanol prices up on uncertainty, low margins in Feb

London, 6 February (Argus) — Spot ethanol prices in northwest Europe firmed to a six-month high at the start of February after several months of remaining largely steady. The minimum 64pc greenhouse gas (GHG) savings ethanol spot price reached €700/m³ on 4 February, its highest since 2 August 2024. Despite this, participants are reporting ample supply in the region, sufficient to meet current demand. The gains are largely attributed to a closed arbitrage with the US, higher production costs and ongoing uncertainty surrounding potential US tariffs. Some market participants believe the price rise in the ARA region is partially driven by higher ethanol prices in the US, which have been supported by rising corn prices . These participants said European prices may have tracked US price gains given the closed arbitrage with the country, with expectations that the arbitrage between the regions will reopen as a result of higher ethanol prices in ARA. Looking ahead, some market participants predict that ethanol imports will be reduced in the second quarter, which has caused the ethanol forward curve to shift into contango, with prices peaking at €711/m³ for the second quarter on 5 February. Trump tariffs turmoil Participants said prices are also being supported by uncertainty surrounding US president Donald Trump's plans to impose tariffs on imports from the EU. The European Commission said this week it will respond "firmly" should Trump "unfairly or arbitrarily" impose tariffs on EU goods. Trump made a similar complaint about the UK, but said he thinks "that one can be worked out". Retaliatory tariffs from the EU could affect ethanol flows, as the EU is a net importer of fuel ethanol. It imported almost 69,000t of undenatured ethanol — usually used for road fuel blending in most EU member states — from the US in January-November 2024, according to provisional EU customs data. The UK imported almost 600,000t of ethanol during the same period. The UK can leverage favourable arbitrage opportunities to import ethanol from the US and redirect it to the EU. Producers face higher costs Argus calculations show ethanol production margins for corn and wheat at €168.69/m³ and at €146.71/m³ on 5 February, down from €223.56/m³ and €205.33/m³ a year ago. Variable costs of yeasts, enzymes, chemicals and denaturants are not included in these calculations. Market participants said producers continue to adjust to a poor 2024-25 harvest season in Eastern Europe, caused by unfavourable weather conditions in Ukraine and France. Higher feedstock costs have contributed to higher ethanol prices, although the production margins are still tighter than last year. In Ukraine, Europe's largest wheat exporter excluding Russia, Argus forecasts wheat production will drop to 22.3mn t during 2024-25 , down from a five-year average of 24.7mn t. Corn supply from the country for 2024-25 is projected to fall to 22.9mn t, down from 31.5mn t in the previous season, according to Argus data. France — Europe's largest producer of ethanol — has cut its wheat production outlook for 2024-25 because of wet weather. Rainfall in other parts of Europe has affected corn toxin levels, potentially leading to poorer quality ethanol. This is likely to weigh on ethanol output in 2025 as it will strain feedstock supplies, push production costs up and squeeze margins for producers. More recently, European market participants said a late-winter cold snap may affect winter crops in Ukraine, and if so, strain feedstock supplies and push ethanol production costs up further. It comes as markets are still waiting for an update on level 2 in the nomenclature of territorial units for statistics GHG emission values, the so called Nuts 2 values. Biofuel producer Archer Daniels Midland expects ethanol profit margins to narrow this year, after posting wider margins in the fourth quarter. The company expects ethanol margins to drop to break-even in the first quarter on higher industry run rates, even as robust demand for exports from the US supports improved volumes, it said. ADM is one of the largest exporters of ethanol to Europe, according to those in the market. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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