EU states issue large tranche of free ETS permits

: Emissions
14/03/28

EU member states this week issued 86.5mn EU emissions trading scheme (ETS) allowances free of charge to industrial companies, bringing them closer to completing free issuance for 2013 and 2014 emissions.

Austria, Finland, France, Hungary, Ireland, Italy, Lithuania, Slovakia, Spain and the UK issued 84.4mn allowances for 2014 emissions, and 2.1mn allowances for 2013 emissions. Of these, Finland, Lithuania and Spain began their issuances for 2014 by issuing 20.6mn allowances, 6.2mn allowances and 55.9mn allowances, respectively.

The number of allowances issued this week is a significant increase on the 1.3mn allowances issued across the EU last week.

Spain issued its share of allowances yesterday to installations that did not require a downward adjustment of their free allocations, the country's environment ministry said. It has to "finalise procedures for the adjustment of allocations" before completing its allocation of 64.3mn allowances for 2014 emissions. "At the moment, we do not know when we will be able to do this," the environment ministry added.

Companies subject to the EU ETS in non-power generating industrial sectors are eligible to receive some of their allowances for free during the current trading phase (2013-20). The European Commission releases data every Friday on the number of allowances countries have issued.

Member states have now issued 758.8mn allowances, almost 91pc of the 847.6mn free allowances they are eligible to allocate to industry for last year's emissions. They have also issued 601.8mn allowances, more than 73pc of the 820.6mn allowances they are eligible to allocate free of charge to industry for this year.

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25/12/15

UK, Malaysia strengthen energy transition partnership

Singapore, 15 December (Argus) — The UK and Malaysia have launched the second phase of the Malaysia-UK Partnering for Accelerated Climate Transitions (UK PACT) fund, which is aimed at supporting Malaysia's energy transition through targeted projects. The UK will provide up to £2.9mn ($3.88mn) in funding across the 2025-26 and 2026-27 financial years, the countries announced on 12 December. The programme aims to establish a pathway for private and public sector participants through a strategic roadmap for green finance, as well as enable investment into energy storage solutions and grid infrastructure, and strengthen carbon market mechanisms. This second phase builds on the support provided by the UK over 2020-23 and is in line with Malaysia's more recent climate policies such as its national energy transition roadmap, its nationally determined contribution (NDC) for 2035 and its upcoming climate change bill. The first iteration of the programme involved up to £2.6mn in funding for projects in priority areas such as energy, nature and low-carbon policies. The Malaysia-UK PACT in July called for proposals from eligible organisations to develop projects focusing on objectives such as developing a sustainable finance roadmap, improving project bankability by establishing a regulatory framework for renewable integration solutions with a focus on energy storage systems, and providing support to industry and high-emitting sectors to prepare to participate in the domestic emissions trading scheme. The UK has partnered with multiple other countries such as Thailand, Indonesia and most recently, the Philippines, under the PACT programme, which is governed and jointly funded by the UK's Foreign, Commonwealth and Development Office and Department for Energy Security and Net Zero. Malaysia intends to hit peak emissions by as early as 2030 and no later than 2034, depending on the availability of support. In its latest NDC, it aims to achieve an absolute emissions reduction of 15mn-30mn t of CO2 equivalent (CO2e) by 2035 from its projected peak level, which it did not indicate. The country will introduce a carbon tax next year, with an initial focus on the iron, steel and energy sectors. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia to boost battery subsidy scheme for residents

25/12/15

Australia to boost battery subsidy scheme for residents

Sydney, 15 December (Argus) — Australia's federal government will now spend A$7.2bn ($4.8bn) on subsidies for households and small businesses to buy battery storage systems as it grapples with increasing small-scale solar power installation. The programme will grow from the prior A$2.3bn, which was the previous amount allocated to the initiative, because of over-subscription to the scheme so far, Australia's energy minister Chris Bowen said on 13 December. The initiative provides discounts of about 30pc for the upfront installation costs for small-scale battery storage systems with a range of 5-100kWh. The discount has already been taken up by 155,000 customers, Bowen said. The expansion will see 2mn batteries totalling 40GWh capacity installed by 2030, the government estimates. Canberra will tier the subsidy starting May 2026. This means that the discounts are applied to the first 50KWh, for systems up to 100KWh. This links the discount to the number of certificates the system will generate under Australia's small-scale renewable energy scheme. The certificates work by a retailer or installer applying for the credits, which will then be sold on behalf of the buyer, reflected in a discount on the quoted cost of a battery system. After 1 May 2026, the general number of certificates created by each KWh of a battery will be cut from 8.4 to 6.8, with the additional adjustments for medium and large systems. Australia's retail energy prices have soared despite large-scale take-up of rooftop solar in the sun-drenched nation's suburbs, with one in three households in Australia having a rooftop solar array. Canberra is hoping that switching energy usage to the hours in the middle of the working day could help alleviate rising bills, which are a political problem for the government. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s energy demand falls on economic slowdown

25/12/12

Japan’s energy demand falls on economic slowdown

Osaka, 12 December (Argus) — Japan's energy consumption in the April 2024-March 2025 fiscal year fell again from a year earlier, pressured by slower industry activity. The country's 2024-25 final energy use totalled 292mn kiloliters, or 1.84bn bl of oil equivalent (boe), down by 1.7pc from a year earlier, according to preliminary data released on 12 December by the trade and industry ministry Meti. This marks the third consecutive annual decline. Coal use in final energy consumption fell by 3.7pc from a year earlier to 172mn boe in 2024-25, while oil demand declined by 3.7pc to 841mn boe. This came as energy consumption in the manufacturing and transportation sectors declined by 3.2pc to 766mn boe, and by 1.5pc to 445mn boe respectively. But demand for natural gas and city gas rose by 1.5pc from a year earlier to 167mn boe. Power demand also edged up by 1pc to 517mn boe. Coal-fired power generation edged up by 0.9pc to 283.4TWh during the period, while oil- and gas-fired power dropped by 2.7pc to 71TWh and by 2.4pc to 315.7TWh. Zero-emission power supplies, including renewables and nuclear power, rose by 3.9pc to 322.1TWh. Japan's energy-derived CO2 emissions fell by 1.4pc from a year earlier to 908mn t in 2024-25, supported by the increased use of renewable and nuclear power supplies. The 2024-25 emissions represented a 26pc fall compared with the country's 2013-14 baseline, or the lowest level since 1990-91. The lower energy consumption, as well as increased use of domestic renewable and nuclear energy, helped lift Japan's energy self-sufficiency rate to 16.4pc in 2024-25, up by 1.1 percentage points from a year earlier, based on International Energy Agency methodology. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Bundeskabinett beschließt Anpassung der THG-Quote

25/12/10

Bundeskabinett beschließt Anpassung der THG-Quote

Hamburg, 10 December (Argus) — Das Bundeskabinett hat am 10. Dezember ein Gesetz zur Umsetzung der RED III in nationales Recht beschlossen. Das Gesetz wird voraussichtlich nicht vor dem 1. Januar verabschiedet, soll aber rückwirkend ab dann gelten. Damit passt der Gesetzgeber die Treibhausgasminderungsquote an und schafft die Doppelanrechnung fortschrittlicher Kraftstoffe ab. Preise für THG-Zertifikate steigen bereits. Die Gesetzesvorlage, die das Kabinett beschlossen hat, entspricht weitestgehend einem Entwurf vom 29. Oktober, der im November durchgesickert ist . So soll unter anderem die Quotenhöhe bis 2040 auf 59 % steigen. Für 2026 wird sie 12 % betragen. Flugzeug- und Schiffskraftstoffe sind von der Quotenverpflichtung ausgenommen. Das Gesetz beendet zudem die Anrechenbarkeit von Palmölprodukten, insbesondere Palmölmühlen-Abwasser (POME), auf die THG-Quote, wie bereits in einem früheren Ministerialentwurf vorgesehen. Allerdings tritt das Verbot für POME sowie die Pflicht für Kraftstoffproduzenten, Vor-Ort-Kontrollen durch eine zuständige Behörde eines EU-Mitgliedstaats zuzulassen, erst 2027 in Kraft. Damit bleibt 2026 ein Übergangsjahr. Der Gesetzentwurf bestätigt auch das Ende der Doppelanrechnung für fortschrittliche Biokraftstoffe, ein zentraler Unsicherheitsfaktor für Marktteilnehmer. Nach geltendem Recht können fortschrittliche Biokraftstoffe mit dem zweifachen ihres Energiegehalts auf die THG-Quote angerechnet werden, sofern das Mindestmandat für fortschrittliche Kraftstoffe erfüllt ist. In der Folge müssen Inverkehrbringer künftig mehr Biokraftstoffe auf dem Markt bringen oder THG-Zertifikate kaufen, um die Quote zu erfüllen. Die Änderung zur Abschaffung der Doppelanrechnung gilt jedoch für das gesamte Verpflichtungsjahr und alle Folgejahre, was bedeutet, dass sie rückwirkend ab dem 1. Januar 2026 greift. Die einzige Ausnahme gilt für Kraftstoffe, die vor dem 1. Januar 2026 in Verkehr gebracht wurden. Das Gesetz tritt am zweiten Tag nach seiner Veröffentlichung im Bundesgesetzblatt in Kraft, wobei einzelne Abschnitte aus verfahrensrechtlichen Gründen einen Tag früher wirksam werden. Der Gesetzentwurf muss nun dem Bundesrat und dem Bundestag zur Beratung vorgelegt werden. Die Zustimmung des Bundesrats ist nicht erforderlich. Der Bundestag könnte jedoch noch Änderungen einbringen. Erst nach Zustimmung des Bundestags kann das Gesetz dem Bundespräsidenten zur Unterzeichnung vorgelegt und anschließend im Bundesgesetzblatt veröffentlicht werden. Der Abschluss des Gesetzgebungsverfahrens wird im ersten Quartal 2026 erwartet. Änderungen bei Unterquoten, RFNBOs und Biomethan Das Mandat für fortschrittliche Biokraftstoffe aus Rohstoffen gemäß Anhang IX der RED III wird ebenfalls erhöht und soll bis 2040 9 % erreichen, wie bereits im Entwurf vom 29. Oktober vorgesehen. Das Mandat für erneuerbare Kraftstoffe nicht biogenen Ursprungs (RFNBOs) — wie E-Fuels und grüner Wasserstoff — fällt höher aus als im vorherigen Entwurf. Es steigt bis 2034 auf 2,5 % des Energiemixes eines verpflichteten Unternehmens, statt 1,8 % im Entwurf von Oktober, und erreicht 2040 8 % statt 4 %. Die Strafzahlung bei Nichterfüllung beträgt 120 €/GJ. Importiertes Biomethan kann auf die THG-Quote angerechnet werden, sofern bestimmte Bedingungen wie der Anschluss an das EU-Gasnetz erfüllt sind. Kleinere Anpassungen umfassen die Absenkung des Basiswerts für Emissionen von 94,1 kg CO2e/GJ auf 94 kg CO2e/GJ, um die EU-Vorgaben zu harmonisieren, sowie die Verschiebung der Frist für die Anmeldung beim Hauptzollamt vom 15. April auf den 1. Juni des Folgejahres. Markt reagiert mit Preissprung Der Markt für THG-Zertifikate reagierte sofort. Zertifikate der Kategorie "Andere" für 2025 werden am 10. Dezember rund 20 €/t CO2e höher gehandelt als am Vortag, und auch die Preise für Zertifikate für 2026 und 2027 steigen. Die Preise für 2025-Zertifikate steigen, obwohl sie von der Gesetzesänderung nicht direkt betroffen sind, da sie als Ersatz für 2027-Zertifikate gelten, weil überschüssige Erfüllung aus 2025 auf 2027 übertragen wird. Zudem könnte HVO künftig eine zentrale Rolle bei der Erfüllung der THG-Quote spielen, was die Zertifikatspreise beeinflussen kann. Die Nachfrage nach fortschrittlichem HVO könnte deutlich steigen, da es unbegrenzt auf die THG-Quote angerechnet werden kann — sowohl als Beimischungskomponente als auch als Reinkraftstoff — und in den meisten bestehenden Diesel-Fahrzeugflotten eingesetzt werden kann. Das Ende der Doppelanrechnung könnte auch die Nachfrage nach nicht-fortschrittlichen Biodiesel-Sorten wie RME (Rapsbasis) und UCOME (Altspeiseölbasis) erhöhen. Deren Anrechenbarkeit ist zwar auf einen bestimmten Prozentsatz des Energiemixes eines Unternehmens begrenzt, doch wurde diese Grenze in der Vergangenheit nicht immer ausgeschöpft. Von Max Steinhau & Chloe Jardine Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

German cabinet passes EU RED III

25/12/10

German cabinet passes EU RED III

Hamburg, 10 December (Argus) — The German cabinet on 10 December approved legislation to implement the EU's Renewable Energy Directive (RED III) into national law. This will adjust the greenhouse gas (GHG) reduction quota and abolish double counting of advanced fuels from 2026. But it is unlikely to pass remaining legislative processes in time for the EU's 1 January deadline. The bill passed by the cabinet largely follows a draft dated 29 October that was leaked in November. The overall quota level will rise to 59pc by 2040. Aviation and marine fuels are exempt from the quota obligation. The law will end the eligibility of palm oil products, most notably palm oil mill effluent (Pome), for compliance towards the GHG quota. This exclusion, and a requirement for fuel producers to allow on-site audits, will not come into effect until 2027, leaving 2026 as a transitional year. The end of double counting for advanced biofuels removes a key point of market uncertainty. Under current rules, advanced biofuels can be counted as twice their energy value towards the GHG quota, provided the minimum sub-mandate for advanced fuels has been met. But the change to end double counting will apply to the entire compliance year and all subsequent years, meaning it will be retroactive to 1 January. The only exception is for fuels supplied prior to 1 January 2026. The law will enter into force on the second day after publication in the Federal Law Gazette, with selected sections taking effect a day earlier for procedural reasons. Before that can happen, the bill must be submitted to the Germany's lower and upper parliaments for debate. The lower house's approval is not required, and the upper house could initiate changes. The bill can only be submitted to the Federal President for his signature once the upper house has given approval. This process is likely to conclude in the first quarter of 2026. Changes to sub-quotas, RFNBOs, biomethane The sub-mandate for advanced biofuels, made from feedstocks listed in Annex IX of RED III, will rise to 9pc by 2040. The mandate for renewable fuels of non-biological origin (RFNBOs) — such as e-fuels and green hydrogen — is higher will rise to 2.5pc of an obligated company's energy mix in 2034, and then to 8pc in 2040. The penalty for non-compliance is €120/GJ. Imported biomethane can be counted towards the GHG quota, provided it meets certain conditions, such as a connection to the EU gas grid. The baseline emissions value is 94kg CO2e/GJ, aligned with the rest of the EU. The registration deadline with the main customs office is 1 June. The market for GHG certificates reacted immediately. Other certificates for 2025 are trading around €20/t CO2e higher than the previous day, and prices for 2026 certificates are rising. Prices for 2025 certificates are rising, although they are unaffected by the change. They are seen as a substitute for 2027 certificates because excess 2025 compliance will be carried over. Hydrotreated vegetable oil (HVO) could now play a central role in meeting the GHG quota, which can influence certificate prices. Demand for advanced HVO could increase significantly, as it can be counted without limit towards the GHG quota as a blending component and as a pure fuel and can be used in most of the existing diesel vehicle fleet. The end of double counting could increase demand for non-advanced biodiesel grades, such as rapeseed-based RME and used cooking oil-based Ucome. Although the eligibility of these is capped to a certain percentage of a company's energy mix, this limit has not always been fully utilised in the past. by Max Steinhau and Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU states issue large tranche of free ETS permits

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