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USDA overhauls 'climate-smart' agriculture program

  • : Agriculture, Emissions
  • 25/04/17

The US Department of Agriculture (USDA) has begun to overhaul a program that for three years incentivized "climate-smart" practices to reduce greenhouse gas (GHG) emissions through grants to farmers, ranchers and forest landowners.

USDA has cancelled the Partnerships for Climate-Smart Commodities (PCSC), a program launched during former US president Joe Biden's administration, agency administrator Brooke Rollins said on Monday. Instead, the USDA has "reformed and overhauled" the program into the Advancing Markets for Producers (AMP) initiative.

According to the USDA, most of the projects under the Biden-era program "had sky-high administration fees" that resulted in considerably less federal funding being provided to farmers. The agency said it will review and potentially allow some projects to continue if they show that producers are receiving at least 65pc of federal funds.

"We continue to support farmers and encourage partners to ensure their projects are farmer focused or re-apply to continue work that is aligned with the priorities of this administration," the agency said.

In addition, the USDA said it will review current projects based on whether recipients of PCSC grants had at least one enrolled producer and made a payment to at least one producer before the end of last year.

Any expenses incurred under the PCSC before this week's announcement will be honored, the agency said.

The PCSC, which the agency launched in February 2022, had the potential to increase supply in the voluntary carbon market. It was designed to help farmers, ranchers, and forest landowners use climate-smart practices such as those that help improve and maintain soil quality of forests, promote the use of cover crops, and encourage prescribed grazing. The program funded projects that created market opportunities for products produced through climate-smart practices and used cost-effective methods for tracking and verifying resulting reductions in GHG emissions.

The Biden-era program initially had funding amounting to $1bn before more than tripling to $3.5bn a few months after its launch.

But the USDA under US president Donald Trump appears to be downsizing that program, and it remains unclear how many projects will be permitted to continue.

The move is part of a broader effort by the new administration to review, reconsider and potentially roll back federal climate policies. The US Environmental Protection Agency is reviewing more than 30 Biden-era emissions and water regulations. In addition, the president issued an executive order last week directing the Department of Justice to review and potentially challenge state and local climate policies, calling out California's cap-and-trade program as one potential target.


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25/05/22

Brazil senate passes environmental licensing bill

Brazil senate passes environmental licensing bill

Sao Paulo, 22 May (Argus) — Brazil's senate approved a bill that aims to standardize and, in some cases, speed up environmental licensing that the oil industry has blamed for slowing exploration projects . The bill, which the senate approved Wednesday in a 54 to-13 vote, aims to create national standards for environmental licensing, with the goal of simplifying the process for projects that have a limited environmental impact. The bill also aims to create a new type of environmental license for projects that are considered government priorities. These projects would be subject to a more simplified licensing process that would take one year at most. The creation of a new type of licensing for these projects would potentially facilitate oil exploration in the Amazon, the senate said. The change comes as state-controlled Petrobras pushes to begin offshore drilling in the environmentally sensitive Foz do Amazonas offshore basin . The bill would also exempt agricultural projects from obtaining environmental licensing but would continue to require farmers to obtain authorization to remove native vegetation. It also allows small- and medium-sized projects to self-declare their environmental commitments, without the need to have a proper license. Senator Eliziane Gama criticized that proposal, using the disaster in the Brumadinho dam — which burst in 2019 and was considered a medium-sized project — as an example. Brazilian energy think tank Instituto Acende called the bill an important milestone for Brazil, adding that if approved, it would "reduce legal uncertainty, administrative inefficiencies, and obstacles to sustainable development". Environmentalists slammed the proposal, with Observatorio do Clima calling it the "greatest attack on environmental legislation in four decades". The legislation would approve nearly all new projects without environmental impact studies, the group said. The bill will now return to the lower house because senators altered the original text. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US could undermine global climate co-operation: Podesta


25/05/22
25/05/22

US could undermine global climate co-operation: Podesta

London, 22 May (Argus) — The global climate community will have to pay close attention to the fact that the administration of US president Donald Trump "may do whatever they can to undermine global co-operation in the energy transition" in forums such as the G7 and the UN Cop 30 climate summit, former US government climate advisor John Podesta told the Financial Times Climate and Impact Summit Europe today. "I hope people will resist them," he said, after pointing out that during Trump's first term, the US administration was "essentially… passive" on the climate on a global stage. Podesta said that through Trump's attacks on former president Joe Biden's clean energy-supporting Inflation Reduction Act , the US has "handed a victory particularly to China". The act had become an energy transition model around the world, Podesta said, pointing to the EU's Green Industrial Deal. "The way to decarbonise and deal with climate change is through investment, innovation and technology… and what we have done is thrown in the towel and thrown in the hand", he said. "There was I think, bi-partisan consensus in the US and consensus in Europe that we need to react to [China's domination in the green industry sector]," he added, saying that there is an economic security dimension with leaving China in a dominant position. Clean energy deployment in the US is likely to stay robust in the short term, he said. Some Republican state governors have raised objections to the administration's rollback of clean energy support, but business investing in that area is keeping its collective head down, Podesta said, largely because "the administration has been engaged in a process of intimidation". Podesta said that there remains significant sub-national action in the US, but warned that the Trump administration is trying to undermine that too. The administration has moved to "attack the underlying science" and the "human capital" in institutions such as US climate and weather agency the National Oceanic and Atmospheric Administration, Podesta said. "If you eliminate all the information sources maybe the problem goes away", he added. The government has already pulled the US out of the Paris climate agreement and could withdraw from the UN Framework Convention on Climate Change (UNFCCC) — the UN's climate body. But there are legal issues around this, including whether the government may need a "supermajority" in the Senate, Podesta said. "The law has not been a constraint on this government," Podesta added. By Georgia Gratton, Caroline Varin & Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

European Parliament adopts carbon border changes


25/05/22
25/05/22

European Parliament adopts carbon border changes

Brussels, 22 May (Argus) — The European Parliament today approved changes to the bloc's carbon border adjustment mechanism (CBAM) that are estimated to exempt 90pc of importers from the measure, linked to the EU emissions trading system (ETS), although a final legal text still needs to be agreed with EU member states. The parliament adopted by a large majority the European Commission's proposal, with a minor amendment to clarify that CBAM covers electricity importers but not power generated "entirely" in the European Economic Area (EEA) countries Iceland, Liechtenstein and Norway and imported to the EU. These countries are covered by the EU ETS. The adopted text also confirms the start date for CBAM certificate sales as 1 February 2027, pushed back from 2026 previously, to "address significant uncertainties related to the year 2026". Parliament said the new de minimis mass threshold of 50t would exempt 90pc of importers from the CBAM. The commission designed the changes to continue to cover the bulk of CO2 emissions from imports of iron, steel, aluminium, cement and fertilisers. Most fertiliser imported to the EU is in the form of bulk shipments, which are well above 50t. Russia earlier this week launched a formal dispute procedure at the World Trade Organisation against CBAM as an "alleged export subsidy". By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexican GDP outlook dims on tariffs: IMEF


25/05/21
25/05/21

Mexican GDP outlook dims on tariffs: IMEF

Mexico City, 21 May (Argus) — Mexico's association of finance executives IMEF lowered its 2025 growth forecast for a fourth consecutive month, citing the growing impact of US tariffs on the economy. GDP is now expected to grow just 0.1pc in 2025, according to IMEF's May survey, down from 0.2pc estimates in April, 0.6pc in March and 1pc in February. The number of respondents forecasting a contraction in GDP rose to 16, or 37pc of the sample, from nine in April. While the US has granted some exemptions and discounts for Mexican goods meeting regional content rules, IMEF said the effective tariff rate on Mexican exports remains higher than that for Canada, Brazil, India, Vietnam and others. "We're already seeing the [tariffs'] impacts," said IMEF economic studies director Victor Herrera, adding that May trade data will likely show a sharp drop in Mexican exports to the US. Trade is also being hit by a screwworm outbreak in cattle that led to port closures last week and curtailed beef exports, which account for $1.3bn in annual exports. More automakers could relocate or scale back production in Mexico, Herrera said, after Stellantis confirmed plans to shift some operations to the US and recent reports Nissan may close one or both of its Mexican plants. In response, Mexico this week sent deputy economy minister Luis Rosendo Gutierrez to Tokyo to meet with Mazda, Nissan, Toyota and Honda executives. IMEF cut its 2025 job creation forecast to 200,000 in May from 220,000 in April. Mexico's social security administration IMSS reported only 43,500 new jobs over the past 12 months as of 5 May. Beyond trade, IMEF flagged uncertainty from recent constitutional reforms and the potential for a US tax on remittances as additional risks to growth. The group held its 2025 inflation forecast steady at 3.8pc, despite Mexico's consumer price index rising to 3.93pc in April from 3.80pc in March . IMEF noted concerns about a potential rebound in inflation later this year after the central bank cut its benchmark interest rate by 50 basis points to 9pc on 8 May — the third such cut in 2025. The group now sees the end-2025 rate at 7.75pc, down from 8pc previously. IMEF expects the peso to end the year at Ps20.80/$1, slightly lower than the Ps20.90/$1 forecast in April. The peso recently strengthened to Ps19.34/$1, though Herrera said this reflected dollar weakness more than peso strength. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nations eye new climate ties including China without US


25/05/21
25/05/21

Nations eye new climate ties including China without US

London, 21 May (Argus) — The world's politicians are still working out how to deal with US president Donald Trump, but climate leaders will forge new, diversified relationships, with China likely to play a growing part, delegates heard today at the Financial Times Climate and Impact Summit Europe . Trump's move to rapidly roll back US climate and environment-related regulation was a shock, but in Latin America, "underneath, so far, things have not really yet shifted", Colombia's former environment minister Susana Muhamad said today. Latin American countries are likely to further diversify relationships, she added, noting co-operation agreements signed in Beijing between Colombia and China. Colombia joined China's belt and road initiative earlier this month. "The world is still grasping what Trump is doing", and countries are still forming new relationships, EU member of parliament and vice-chair of the parliament's environment committee Bas Eickhout said today. And the UN Cop 30 climate summit — set for November in Belem, Brazil — is happening early in the day in terms of those new relationships being formed in the climate space, he added. China will be in "the driver's seat in some way… or at least a co-pilot", founding director at Chinese NGO the Institute of Public & Environmental Affairs Ma Jun said. The world's biggest economies "need to play a role in the governance", he added. China and Europe have experienced many of the same pressures on climate policy, delegates heard. Although the "backlash" against some "green" policies started around two years ago, those pushing against such policy have been emboldened by Trump's election, Eickhout said. "Energy security has been elevated to the top priority in China", Ma said — although China has already reached some of its 2030 renewable energy targets. In Europe, "I think the entire decarbonisation agenda will continue", but it will be framed as a competitiveness and security agenda, Eickhout said. He also noted some softening from industry previously pushing back on "green" policy, given that Europe's relative predictability has been thrown sharply into focus by drastic changes set out by the US government. Muhamad pointed to the global need for a just energy transition. "If the transition does not bring higher equality, the transition will not happen", she said. Given that finance is crucial, "the influence of the US in the multilateral banks' decisions… will be critical", she added. By Georgia Gratton and Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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