Switzerland authorises Senegal Article 6 carbon project

: Electricity, Emissions, Oil products
26/09/24

Switzerland has authorised a joint emissions-saving project with host country Senegal under Article 6.2 of the Paris climate agreement, supporting electric mobility in the west African country.

The project has been developed by Australia-based Motion Energy and was authorised by Senegal in late August. It will roll out battery electric vehicles (BEVs) among the taxi and ride hailing service fleets of Senegalese capital Dakar, replacing mostly ageing internal combustion engine (ICE) vehicles and reducing greenhouse gas emissions in the country's transport sector.

The project runs from August 2024 to the end of 2030, and is expected to yield total emission reductions of 175,993t CO2 equivalent (CO2e) to be converted into tradeable internationally transferred mitigation outcomes (Itmos). Emissions reductions generated by the project and converted into Itmos started at 8t CO2e in 2024, with just eight participating BEVs, and are projected to rise to 72,279 in 2030, when over 6,000 BEVs are expected to be on the road.

Swiss procurement agency the Klik foundation will finance the project by buying the Itmos, the emissions savings from which will count towards Switzerland's 2030 climate target.

The project is additional to Senegal's nationally determined contribution (NDC) to the Paris agreement, as the activity sits beyond the country's unconditional NDC.

BEVs are currently not prevalent in Senegal, mainly owing to the significant price disparity compared with ICE vehicles, according to the project's mitigation activity design document.

This means the programme is additional — dependent on carbon credits for its economic viability — a crucial feature under Article 6. But the project developer concedes that demonstrating financial additionality is "challenging", given how vehicle costs and operational revenues are expected to change over the coming years.

The project uses a more conservative version of the voluntary carbon market's VCS methodology VM0038 from registry Verra for the charging infrastructure.

The BEVs will be sold by Dakar-based Mbay Mobility.

By Chloe Jardine

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.

News

26/09/24

Europe well supplied with naphtha heading into 4Q

London, 24 September (Argus) — European naphtha markets remain well supplied heading into the fourth quarter, with cautious feedstock buying by petrochemical producers and limited export opportunities outweighing support from gasoline blending and seasonal refinery maintenance. Naphtha cracks in northwest Europe gradually softened through September. Discounts to benchmark North Sea Dated crude widened to $23.35/bl on 23 September from $4.70/bl at the start of the month, while forward cracks against Ice Brent futures fell to a $6.50/bl discount from $3.37/bl over the same period. Higher Rhine water levels earlier this month allowed more naphtha to move inland to European crackers, helping to draw down stocks in the Amsterdam-Rotterdam-Antwerp hub. But river levels have since fallen and could reach critically low levels at the Kaub bottleneck in the coming days, potentially restricting barge movements between the Upper and Lower Rhine, market participants said. Feedstock buying has recently softened amid continued oversupply in ethylene markets, although some participants expect demand to improve in October as crackers rebuild inventories. Refinery maintenance across northwest Europe and the Mediterranean would typically tighten regional naphtha balances at this time of year. But the impact has been less pronounced than expected, leaving prompt availability relatively comfortable, participants said. Support for naphtha consumption has instead come from the gasoline sector. Strong gasoline margins and tight octane markets have maintained demand for blending components, lending some support to values despite subdued demand from the petrochemical sector. But blending activity has become increasingly selective, with buyers favouring higher-quality naphtha streams as octane values remain elevated , market participants said. Export options remain an important outlet for European naphtha. Eastbound economics are workable in some cases, but higher freight costs have reduced the appeal of sending cargoes to Asia compared with earlier in the year, traders said. Asian demand offers limited relief Asian market fundamentals continue to provide limited support for global naphtha balances and demand for imported cargoes. Asian buyers have remained cautious when covering November requirements, purchasing only their near-term needs rather than building inventories, market participants said. Weak downstream margins and uncertainty over petrochemical consumption have also constrained buying interest. Industry estimates indicate that Asian ethylene cracker operating rates averaged around 70.8pc in the third quarter. While Asia remains the largest source of global naphtha demand, buying interest has been insufficient to significantly improve eastbound export opportunities from Europe, market participants said. Ethylene output in Japan and South Korea has declined this year, according to industry estimates, reflecting continued pressure on production margins. Cracker operators across northeast Asia remain focused on managing operating rates rather than increasing feedstock purchases, market participants said. A heavy programme of cracker maintenance in South Korea in September and October is also weighing on naphtha consumption. Weak production margins in recent years have prompted wider rationalisation of the country's petrochemical sector, including the suspension of crackers. Lotte Chemical suspended its 1.05mn t/yr cracker at Daesan on 1 September as part of the rationalisation programme. High freight costs have further weakened arbitrage economics. The cost of moving cargoes from the Mediterranean and northwest Europe to Asia remains elevated, reducing the competitiveness of European supply in the region, traders said. As a result, Asia has provided only limited relief for surplus Atlantic basin supply. A sustained increase in cracker feedstock requirements would be needed to materially improve eastbound export opportunities and tighten European balances towards the end of the year, market participants said. By Jide Tijani and Toong Shien Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

German 1H bitumen output cut by Mideast crude shortfall

26/09/24

News

26/09/24

German 1H bitumen output cut by Mideast crude shortfall

London, 24 September (Argus) — German bitumen production fell by around 16pc on the year to 1.17mn t in the first half of 2026, official data show, because of a shortage of heavy crudes ideal for production of the road paving product. Output was particularly low in May and June, because the US-Iran war created Mideast crude shortfalls. German refinery output fell by more than 30pc on the year in May to 247,000t, and June production was 20pc loweron the year at 254,000t, according to data from the country's export control office (Bafa). Most German refiners rely heavily on bitumen-rich sour-grade crudes sourced from the Mideast Gulf, supply of which slowed after the US-Iran war led to the effective closure of the strait of Hormuz. The Transalpine Pipeline (TAL), which is a source of supply for the Miro consortium's 310,000 b/d Karlsruhe refinery in southwest Germany, was only able to run lighter crudes in May and June, effectively cutting bitumen output and inducing a switch to light-end products like diesel and jet fuel. TAL, which begins at Trieste in Italy, also supplies the Czech Republic's 108,000 b/d Litvinov refinery, owned by Orlen Unipetrol — a key supplier to Germany. Litvinov also focused on middle-distillate output, which effectively curbed trucked flows of bitumen to Germany. Delays to crude cargo deliveries also affected bitumen output at TotalEnergies' Brunbuettel and Klesch's 84,000 b/d Heide plants in northern Germany. Market participants said refineries in the north had to pause spot offers in order to continue term supplies to buyers in Germany, Denmark and Sweden. German road works generally start in April and break for summer holidays in August. With bitumen output constrained by feedstock issues, and crude and fuel oil prices volatile, domestic German bitumen prices averaged €679/t ex-works in June, the highest on Argus records. Many paving contractors consequently delayed planned road and construction projects to September. Paving activity has been slow in September, but market participants say product availability has improved significantly. Argus assessed average German domestic truck prices at €539/t ex-works in the week ending 18 September. By Navneet Vyasan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

US diesel export limits likely voluntary: Wright

26/09/23

News

26/09/23

US diesel export limits likely voluntary: Wright

Washington, 23 September (Argus) — President Donald Trump's administration does not plan to put a "blanket ban" on US diesel exports but is more likely to pursue voluntary restrictions on diesel flows, US energy secretary Chris Wright said on Wednesday. Trump's call for a diesel export ban on Tuesday has been met with condemnation by oil industry leaders, who have publicly broken ranks with the administration over an idea they say will be disastrous for their industry and not deliver long-term relief from high fuel costs. Rather than banning diesel exports, Wright said the administration is instead looking at making "adjustments with diesel" in hopes of lowering fuel prices from their current record highs. "This is more likely to be done entirely voluntary," Wright said at an event Heatmap News hosted in New York. "We will not cease exports of US diesel. But may there be some tweak in where diesel flows out of US refineries? Yeah, I think we're going to see that because it can stop the rise in price of diesel." Oil industry executives are counting on Wright and others in the administration to convince Trump to resist pressure from Republicans who believe a diesel export ban offers their best shot at retaining control of the US Congress in the upcoming midterm elections on 3 November. "This would be a really bad decision by this administration," American Petroleum Institute chief executive Mike Sommers said in a televised interview. "Fortunately, the president is surrounded by people that are saying that this is a bad idea", including Wright and US interior secretary Doug Burgum, who said last week he opposed banning energy exports. The US on net exported 1.1mn b/d of diesel last year, according to the Energy Information Administration (EIA). Refiners say they will run out of storage space for diesel within weeks if exports were suddenly blocked, forcing across-the-board cuts in production of all fuels, that would translate into higher gasoline prices domestically and abroad. US ultra-low sulphur diesel inventories were at 96.4mn bls for the week ended 18 September , according to the most recent EIA data, about 14pc lower than year-earlier levels. Diesel demand was 3.97mn b/d for the week, up by 6.3pc from a year earlier as the US harvest season is in full swing. Despite opposition to a diesel export ban from Wright and Burgum, administration officials are still studying the idea. On Tuesday, US treasury secretary Scott Bessent said they were reviewing the feasibility of a "full or partial ban" on diesel exports. Asked if there was a rift in the administration on a diesel export ban, the White House said Trump make a decision that "is best for the American people. He wants to see gas prices at the pump fall and is evaluating all the options on the table." Election season push Republicans hoping to avoid crushing losses in the midterms are continuing to push for a full diesel export ban, however. US senator Chuck Grassley (R-Iowa) said on Wednesday he hoped the White House would not listen to "Big Oil" claims that an export ban would not work. "IF U CAN EMBARGO CHIPS U CAN EMBARGO DIESEL," Grassley said in a social media post. Trump outlined his support for a diesel export ban Tuesday while taking questions from reporters, saying a decision on a potential ban would come "fast". Commodity analysts say Trump is running out of time for new policies to have an effect on prices before most voters have cast ballots for the 3 November elections. "We do think if significant changes happen in energy policy — whether it's probably export restrictions, amid this deal, a Russia-Ukraine energy ceasefire — the time to do it is probably now or in the next few days, at most weeks," Goldman Sachs co-head of global commodities Daan Struyven said in a Bloomberg Television interview. A diesel export ban might temporarily lower domestic diesel prices, according to Tom Pyle, president of the nonprofit the American Energy Alliance. But it would be replaced by higher prices for gasoline and diesel as refineries cut runs, he said. "Not only will it not do what they claim it will do, but the folks advocating for this on the campaign trail will have buyer's remorse," Pyle said. Anything short of an export ban — like a voluntary curtailment that Wright suggests — would be a "victory" for the oil sector and less disruptive on markets, Pyle said. Other cost-cutting options Republicans are pursuing ideas outside of an export ban to lower fuel prices. Ohio lawmakers are considering voting soon to suspend state fuel taxes, with the backing of Republican gubernatorial candidate Vivek Ramaswamy. US senator Susan Collins (R-Maine), who is fighting to retain her seat, on Tuesday urged the administration to release diesel from a 1mn bl strategic reserve in the US northeast. Louisiana governor Jeff Landry (R) on Wednesday issued an emergency directive suspending enforcement of a ban of highway use of dyed diesel, which does not include the 24.4¢/USG federal tax on diesel and is typically used on farms. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Market approves multi-statement reporting: GHG Protocol

26/09/23

News

26/09/23

Market approves multi-statement reporting: GHG Protocol

Sao Paulo, 23 September (Argus) — Emissions accounting standards group the Greenhouse Gas Protocol (GHG Protocol) has published its report containing market feedback on a proposed multi-statement reporting framework with a market approval rate of 84pc, it said on 23 September. The suggested framework comprise three additional tools: a market-based inventory to account for contractual instruments outside existing scope 2 market-based method; an impact statement on projects across a company's value chain that avoid emissions against a baseline scenario; and a report on non-GHG indicators for metrics not quantified in tons of carbon. The report gathered over 400 respondents, of which 87pc strongly supports the market-based inventory and 80pc approves the GHG impact statement. The non-GHG indicators statement had the lowest approval rate — 33pc — with most participants indifferent about the tool. Respondents recognized the need to expand current emission reporting to reflect decarbonization actions that are invisible currently throughout the three scopes, GHG Protocol's report concluded. The updated framework could place new certificates — such as Brazil's new-coming biomethane guarantee-of-origin certificate (CGOB) — on the market's eye for broader decarbonization purposes. But many participants suggested that the additional measures begin as optional to accommodate smaller companies with less reporting capacity. GHG Protocol will consolidate the multi-statement reporting feedback with ongoing Scope 2 standard development , as part of an effort between the firm and the International Organization for Standardization (ISO) to publish a single corporate standard . The timeframe for the co-branded report poins to a draft reflecting the feedback report — set to come out in the second quarter of 2027 — and a final version that should come out in the fourth quarter of 2027. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

VCM demand shifting to term contracts

26/09/23

News

26/09/23

VCM demand shifting to term contracts

London, 23 September (Argus) — Large corporate buyers in the voluntary carbon market (VCM) are moving towards planning procurement over multiple years to secure long-term supply and manage risk, and demand is increasingly being shaped by integrity, quality considerations and integration to compliance markets, Mo Safdar, origination lead at project developer Climate Impact Partners (CIP), said at an online event on Wednesday. The typical "large, multi-million tonne" offtake deals span 15-year periods through to 2040, and corporations are willing to pay a premium for guaranteed delivery that far out as they hedge their positions for future years, when carbon credit prices are expected to rise, Safdar said, speaking at a webinar organised ahead of the Carbon Markets Africa Summit, which will be held in Kigali, Rwanda, on 13-16 October. Some companies also trade options or seek other solutions to hedge, Safdar said. Buyers have become more sophisticated, and now think of carbon credits from a price and risk perspective, alongside the environmental aspects, Safdar said. They are looking for clear delivery structures, replacement provisions, as well as manageable country, export and foreign exchange risks when negotiating offtake contracts, he added. End users are often seeking nature-based removal credits — including agroforestry, improved forest management (IFM) and afforestation, reforestation and revegetation (ARR) credits — and are increasingly aligning their choice of credits within their value chain. A rising quality floor for projects is also a key demand driver, Safdar said. Experts agreed that compliance mechanisms — such as the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) and Article 6 of the Paris Agreement — are supporting demand for carbon credits. Clean cookstove and reducing emissions from deforestation and forest degradation activities in Africa are seeing a reset as Article 6 schemes gain momentum, global climate solutions provider 3Degrees' head of APAC, Shawn Woo, said. But the need for more convergence in policy, regulation and standards is critical for boosting carbon market liquidity, climate advisory body Climate Focus co-founder Charlotte Streck said. We are seeing a lot more domestic regulations recently, and supply-side rules come with significant fees and costs, she said. Africa's largest potential to develop supply under the Article 6.4-regulated Paris Agreement crediting mechanism (Pacm) lies with the land and rural sectors, but it would be "very difficult" for any of these to develop feasible supply streams under Pacm's current rules, Streck added. The rules that govern trading under Article 6.4 are agreed among all participating countries — often a complicated process — and the mechanism aims to provide assurance among stakeholders to deliver at scale, said Perumal Arumugam, manager for markets, non markets and stakeholder interaction division at the UN Framework Convention on Climate Change, which is the governing body for Article 6. Pacm is trying to address many barriers to entry — such as quotas on the share of projects allowed to be exported under Article 6.2 rules, for instance. Some supplying countries are also "overly cautious" when deciding how many credits they are willing to export while they are constantly going under review processes when reporting on their own nationally determined commitments (NDCs), Arumugam said. He called for all stakeholders — buyers, investors, philanthropic organisations — to assist countries, particularly in Africa or other developing countries where human resources are limited. Regulatory certainty and convergence and interoperability among schemes and standards are key to attract investment in the Global South, where most of the supply pipeline lies for carbon markets, experts agreed. Investors will also be looking for projects that have already secured some offtake, security of land, eligibility standards and criteria, as well as co-revenue streams that give larger assurances to a project's feasibility, Safdar said. By Alexandra Luca and Erisa Senerdem Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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