Carbon markets
Overview
Carbon markets are developing as a crucial economic lever in the challenge of reversing the accumulation of greenhouse gases in the Earth’s atmosphere, while CO2 remains a key factor in a range of industrial sectors.
National governments are embracing carbon markets, with a proliferation of carbon pricing policies worldwide. The private sector is channelling finance into projects that generate carbon emissions reductions and removals to mitigate their hard-to-abate emissions.
And the United Nations is making progress in building a global marketplace for carbon emissions reductions that will facilitate nations’ attempts to meet their obligations under the Paris Agreement.
Industrial sectors remain a key source of CO2 emissions and consumption, with innovation looking towards sustainable methods of production and utilisation.
Argus is setting the stage for an extended period of growth, evolution and interconnection of carbon market participants and initiatives.
Latest carbon markets news
Browse the latest market moving news on carbon markets.
Lula visits Japan to talk ethanol, Cop 30, beef
Lula visits Japan to talk ethanol, Cop 30, beef
Sao Paulo, 25 March (Argus) — Brazilian president Luiz Inacio Lula da Silva traveled to Japan on Tuesday in search of energy transition agreements and new market opportunities to improve trade relations between the countries. Bilateral Japan-Brazil trade fell to around $11bn in 2024, down from $17bn in 2011, the Brazilian government said. Brazil exported $730mn in goods to Japan in January-February, while importing $995mn from the Asian country in the period, according to Brazil trade ministry data. Exports dropped by almost 13.5pc from a year before in the two-month period, while imports grew by nearly 25pc. "Firstly, we have [a shortfall] to turn around," Lula said. Brazil will also ask Japan to join its growth acceleration plan . He is accompanied by 11 ministers and four members of congress, including senate president Davi Alcolumbre and lower house president Hugo Motta. Ethanol market Brazil aims to sell more ethanol to Japan, as the Asian country expects to increase its ethanol blend to 10pc from 3pc by 2030. "If Japan blends 10pc of ethanol into gasoline, it will be an extraordinary step not only for us to export to them but for them to be able to produce in Brazil," Lula said. Japan received 3.4pc of Brazil's ethanol exports, according to Brazil's development and trade ministry. Cop 30 and energy transition Lula's visit also seeks to attract investment in renewable energy, forest revamps and new donations to the Amazon Fund, as well as a "strong commitment" from Japan at the Cop 30 summit, to be held in Brazil later this year. Brazil aims to export clean fuels to generate power to Japan, as power imports account for more than 80pc of all Japanese power demand and "a large share of it comes from fossil sources," according to the Brazilian foreign relations ministry's Asia and Pacific secretary Eduardo Saboia. Brazilian and Japanese companies announced earlier this year plans to produce biomethane in Brazil . The renewable fuel would supply both countries. Brazil and Japan should also sign a deal to help recover the Cerrado biome, which is the second largest biome in Brazil and the second most endangered. It comprises of savanah grasslands and forest and makes up about 25pc of the nation's territory. The Cerrado lost 9.7mn hectares to wildfires in 2024, up by almost 92pc from 2023, according to environmental network MapBiomas' fire monitor researching program. Deforestation is one of Brazil's flagship issues for Cop 30 this year. The country has been pushing for forest protection and recovery initiatives as most of Brazil's past Cop pledges cannot be met with only its remaining forests. Japan and Brazil should talk about the Amazon Fund as well because Brazil "wants more", Saboia said. Japan was the first Asian country to donate to the fund with $14mn, which Saboia said was "too little." Where's the beef? Lula is also targeting opening Japan's beef market to Brazilian exports, as the Asian country imports over 70pc of all its beef. Lula met with members of the beef exporters association Abiec in his first day in Japan to discuss the matter. The bulk of Japan's beef imports — 80pc — come from the US, the Brazilian government said. Brazil does not currently export beef to Japan. "Brazil has the logistic capacity to increase exports and double beef exports every four years," transport ministry Renan Filho said. Brazil has been trying to enter Japan's beef market for over two decades. This time, Lula expects to achieve a technical visit from Japan to inspect Brazil's beef producing conditions as a first step toward accessing the Japanese market. Lula will depart to Vietnam on 28 March to debate a plan to turn the country into one of Brazil's strategic partners. Only Indonesia is considered a Brazil strategic partner in southeast Asia. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Low snowpack could support Italian summer gas burn
Low snowpack could support Italian summer gas burn
London, 25 March (Argus) — Low snowpack and hydro reserves in Italy may increase demand for gas-fired plants this summer, in turn driving up power-sector gas burn on days when renewable output is weakest. Italian thermal-fired plants — mostly gas fired — accounted for 51pc of the country's generation mix in the summers of 2020-24, while run-of-river installations, pumped-storage plants and hydroelectric dams accounted for 19pc and solar, wind and other sources provided 31pc. Italian power-sector gas demand averaged 61.5mn m³/d. Italian gas-fired plants compete directly against programmable hydroelectric dams for both the day-ahead and ancillary power markets, so if overall electricity demand this summer remains steady on the year, gas-fired plants stand to gain a greater share of the generation mix than in years when hydro output was stronger. Unseasonably hot weather driving unusually high use of electric-powered air conditioning this summer would further increase scope for Italy's gas-fired plants to run. The estimated water content of snow on Italian mountains as of 8 March — the latest available data — was the lowest for that date since at least 2011 and was almost 57pc below the 2011-23 average for that time of year, according to Italian meteorological association Cima. Snowpack last year also dipped below the 2011-23 average in January-March before late-season precipitation pushed levels back above median levels in April-July. At the same time, water reserves at Italian hydroelectric dams have been well below historical averages this year. Reserves equal to 2.08TWh of power generation as of 17 March — the latest available data — were the third lowest for that date since 2015 and a full 10pc below the 10-year average for that time of year. Looking ahead, following months of predominantly dry weather punctuated by occasional bouts of heavy showers, long-term weather forecasts this week predicted slightly above-average rainfall over the rest of March and throughout April in Milan, around which much of the country's hydro capacity is located. And during that time, at least some rain was forecast to fall on all but one day, which would provide a far steadier influx of water into rivers. That said, Italian renewable generation capacity — particularly solar — is poised to continue rising in the coming months, likely boosting output from those technologies on the year in April-September and restricting demand for dispatchable gas-fired and hydroelectric dams alike. Total Italian PV solar capacity of 37.9GW at the start of March was 20pc higher on the year, suggesting potential for a proportional increase in generation of that type in April-September compared with summer 2024. Italian PV solar panels and on-site renewable installations at homes and businesses, the vast majority of which are solar-based, generated an average of 8GW each day in summer 2024, covering 26pc of all generation nationwide. By Ilenia Reale and Jeff Kuntz Gas and hydro output, hydro reserves GW, TWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US venue case crucial for future clean air fights
US venue case crucial for future clean air fights
New York, 24 March (Argus) — The US Supreme Court on Tuesday will hear arguments about the proper court venue for Clean Air Act lawsuits, which could be pivotal for future enforcement of federal air pollution rules. The court is considering both a case involving the Environmental Protection Agency's (EPA) rejections of small refiners' requests for hardship exemptions from a biofuel blend mandate and the agency's separate denials of state plans for addressing ozone-forming NOx emissions. Judges are not expected to decide the legality of EPA's decisions, just the proper courts for settling the disputes. But the cases are still significant: legal uncertainty to date has affected both EPA programs implicated by the Supreme Court's review and could upend enforcement of future rules if the court does not provide sufficient clarity. Federal ozone season NOx allowance prices essentially flatlined last year as participants were hesitant to trade due to risks from so many court cases. And small refinery exemptions are crucial for biofuel demand, so biofuel producers are wary of empowering more lower courts to reconsider denied exemption requests. The Clean Air Act says that EPA actions that are "nationally applicable" or otherwise based on "nationwide scope or effect" should proceed before the US Court of Appeals for the District of Columbia Circuit, while "locally or regionally applicable" actions head to regional circuit courts instead. But judges have disagreed about how to apply those criteria, since many EPA rules have far-reaching effects but on their face target individual states or facilities. Regulated industry fears that EPA could say a broad set of regulations have nationwide scope, centralizing review in the DC Circuit, which is seen as friendlier to federal regulators and where a majority of judges are Democratic appointees. Local conditions — such as a small refinery in Indiana serving local farmers that cannot handle higher biodiesel blends — get short-changed when various companies' concerns are assembled together, they argue. But EPA under the prior administration and Democratic-led states argue that sending these cases to the DC Circuit, which is more experienced with the complexities of federal rulemaking, makes more sense than letting industry seek out favorable jurisdictions. And they highlight the possibility of courts leaving emitters in one part of the country with laxer rules. "The fundamental risk is that you'll end up with decisions on the same point of law coming out differently in different places — and not an expedient way to resolve that," said Brian Bunger, a Holland & Knight partner and the former chief counsel at the Bay Area Air Quality Management District. For instance, both the DC Circuit and the conservative-leaning 5th Circuit agreed that EPA erred when it denied some refiners exemptions from biofuel blend mandates — but they said so for slightly distinct reasons. The 5th Circuit, for instance, went further by saying refiners reasonably relied on past EPA practice and thus the agency incorporating new analysis into its review of waiver requests was unfair. As a result, EPA recently used different criteria when weighing a waiver request from one refiner in the 5th Circuit's jurisdiction than it used for another refiner, according to partially redacted decisions obtained by Argus through a Freedom of Information Act request. The agency said it could not consider at all whether CVR Energy's 75,000 b/d refinery in Wynnewood, Oklahoma, is able to pass on the costs of program compliance to consumers because of the 5th Circuit decision but could weigh such information when deciding a similar petition from Calumet's 15,000 b/d refinery in Great Falls, Montana. The agency issued those decisions in the waning days of former-president Joe Biden's term. While President Donald Trump has pledged a vastly different approach to environmental regulation, his administration for now has not signaled a different stance than the Biden administration on whether these types of disputes should proceed before the DC Circuit. Schrodinger's case It is still unclear whether the judges view the cases as a tricky technical dispute or part of a broader trend of federal agencies overstepping their authority. Tuesday's hearing could provide clues. Of the court's nine justices, four previously served on the DC Circuit and could see value in sending more complex regulatory cases to the expert court, Bunger said. But the court's conservative majority could also be wary of giving EPA too much authority to set venue. Refiners argue that the agency repackaged dozens of individual exemption denials into two larger regulatory actions as a strategy to get the cases before a friendlier court. The Supreme Court has looked skeptically at other EPA rulings and last year overturned a decades-old legal principle that gave agencies leeway when interpreting ambiguous laws. Final Supreme Court decisions usually arrive by late June. However the court rules, businesses say that it should provide a clear enough explanation to prevent similar venue disputes from reemerging. The US Chamber of Commerce told the court it takes no position beyond urging the court to "adopt an interpretation that provides clarity and predictability to all stakeholders." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU readies tweak for CO2 car standards
EU readies tweak for CO2 car standards
Brussels, 24 March (Argus) — The European Commission is expected to approve this week a legal proposal which would increase flexibility for compliance with CO2 standards for cars and vans. The commission is expected to adopt, by written procedure, a legal proposal on 25 March, targeting additional flexibilities around penalties for cars and vans to meet CO2 emissions performance standards. The proposal is expected to enable compliance with CO2 targets to be calculated over a three-year period , rather than for single years. EU leaders last week called for the legal proposal to be put forward "without delay". EU leaders have also called on the commission to "take forward the review" foreseen in the CO2 for cars regulation. Industry has urged the EU to allow for low carbon and zero emission fuels to be accounted for under the CO2 standards. Separately, further delay to the EU's official emissions reduction goal for 2040 appears likely. The commission does not currently have a "concrete date" to give on the GHG proposal for 2040 but it "does not seem" to be scheduled for presentation this week. The official work program for the commission had listed the 2040 GHG target, an update to the European Climate Law, in the first quarter of 2025. The delay to the EU's 2040 GHG proposal further impacts presentation of an updated EU climate plan — known as a nationally determined contribution (NDC) — which will cover the timeframe up to 2035. The commission said several parties have already missed the 10 February deadline for submission of updated NDCs to UN climate body the UNFCCC. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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