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EU commission pushes for 12-month deforestation delay

  • Market: Agriculture, Biofuels, Biomass
  • 02/10/24

The European Commission has proposed an extra 12 months' "phasing-in time" to implement the bloc's EU deforestation regulation (EUDR). The commission also published the outlines of the EUDR methodology to classify countries as low, standard or high-risk. It said a large majority of countries worldwide will be classified as "low risk".

The commission said that three months ahead of the intended implementation at the end of this year, "several global partners" have repeatedly expressed concerns about preparedness and that European stakeholder preparation is "also uneven". It added that the delay in "no way puts into question the objectives or the substance of the law".

German agriculture minister Cem Ozdemir last month called for the commission to "urgently" postpone the EUDR's implementation by six months. The commission can "create all the necessary conditions on its own" for a delay, without renegotiating the EUDR, he said. Parliament's largest centre-right EPP group has also pushed to delay the regulation.

Officials published "additional" guidance documents and a "stronger" international co-operation framework for global stakeholders, EU states and third countries. The change requires approval from EU states and European Parliament to make the EUDR applicable from 30 December 2025 for large companies. The date would be pushed back to 30 June 2026 for small firms.

A group of major firms such as Ferrero, Mars Wrigley, Mondelez International and Nestle called for no reopening of the EUDR's "substance". The group, joined by several campaign organisations including Fairtrade International, said renegotiating aspects of the EUDR would only increase uncertainty and jeopardise the investments made for application.


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02/05/25

Japan’s Saffaire starts supplying SAF to Japan Airlines

Japan’s Saffaire starts supplying SAF to Japan Airlines

Tokyo, 2 May (Argus) — Japanese sustainable aviation fuel (SAF) joint venture Saffaire Sky Energy has started supplying its SAF to Japan Airlines (JAL). This is the company's first SAF delivery to an airline. Saffaire is a joint venture launched by Japanese engineering firm JGC, refiner Cosmo Oil and biodiesel producer Revo International. The delivery of SAF to a passenger flight marks a full-fledged launch of a supply chain that enables the continuous mass-production and supply of SAF in Japan, JGC and JAL announced on 1 May. The JAL plane was fuelled with Saffaire's SAF at Kansai International Airport in western Japan's Osaka, and departed to Shanghai, China, on 1 May. Saffaire will continue to supply SAF to JAL and start supplying SAF to other airlines as well, JGC told Argus . Saffaire supplied SAF to Japan Air Self-Defense Force in April. It announced plans to start delivery to domestic airlines JAL and All Nippon Airways (ANA), the US' Delta Air Lines , Finland's Finnair, Taiwan's Starlux Airlines and German logistics group DHL Express in the 2025 fiscal year. JGC also announced a plan on 24 April to start supplying Saffaire's SAF to Taiwan's Eva Air in the 2025 fiscal year. Saffaire operates Japan's first large-scale SAF plant in Cosmo's Sakai refinery in Osaka, with a production capacity of around 30,000 kilolitres/yr. Saffaire uses used cooking oil (UCO) as feedstock for SAF. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US bill would extend expired biofuel credits


01/05/25
News
01/05/25

US bill would extend expired biofuel credits

New York, 1 May (Argus) — Legislation soon to be introduced in the US House would extend expired biofuel incentives through 2026, potentially providing a reprieve to refiners that have curbed production this year because of policy uncertainty. The bill, which will be sponsored by US representative Mike Carey (R-Ohio) and some other Republicans on the powerful House Ways and Means Committee, according to a person familiar, could be introduced as soon as today. It would prolong both the long-running $1/USG for blenders of biomass-based diesel and a separate incentive that offers up to $1.01/USG for producers of cellulosic ethanol. The credits expired at the end of last year but under the proposal would be extended through both 2025 and 2026. The incentives would run alongside the Inflation Reduction Act's new "45Z" credit for clean fuel producers, which offers a sliding scale of benefits based on carbon intensity, though the bill would prevent double claiming of credits, according to bill text shared with Argus . The 45Z credit is less generous across the board to road fuels — offering $1/USG only for carbon-neutral fuels and much less for crop-based diesels — and is still in need of final rules after President Joe Biden's administration issued only preliminary guidance around qualifying. The proposal then would effectively offer a more generous alternative through 2026 for biodiesel, renewable diesel, and cellulosic ethanol but not for other fuels that can claim the technology-neutral 45Z incentive. That could upend the economics of renewable fuel production. Vegetable oil-based diesels for instance could claim the blenders credit and earn more than aviation fuels that draw from the same feedstocks. According to Argus Consulting estimates, aviation fuels derived from wastes like distillers corn oil and domestic used cooking should still earn more than $1/USG this year, conversely, since 45Z is more generous to aviation fuels. Extending the biodiesel blenders credit would also allow foreign fuel imports to again claim federal subsidies, a boost for Finnish refiner Neste and the ailing Canadian biofuel startup Braya Renewable Fuels but a controversial provision for US refiners and feedstock suppliers. The 45Z incentive can only be claimed by US producers. The blenders incentive is also popular among fuel marketer groups, which have warned that shifting subsidies to producers could up fuel costs. The proposal adds to a contentious debate taking place across the biofuel value chain about what the future of clean fuel incentives should look like. Some industry groups see a wholesale reversion to preexisting biofuel credits — or even a temporary period where various partly overlapping incentives coexist — as a tough sell to cost-concerned lawmakers and have instead pushed for revamping 45Z. A proposal last month backed by some farm groups would keep the 45Z incentive but ban foreign feedstocks and adjust carbon intensity modeling to benefit crops. Republicans could keep, modify, extend, or repeal the 45Z incentive as part of negotiations around a larger tax bill this year. But the caucus is still negotiating how much to reduce the federal budget deficit and what to do with Inflation Reduction Act incentives that have spurred clean energy projects in conservative districts. Uncertainty about the future of biofuel policy and sharply lower margins to start 2025 have led to a recently pronounced drop in biodiesel and renewable diesel production . President Donald Trump's administration is working on new biofuel blend mandates, which could be proposed in the coming weeks, but has said little about its plans for biofuel tax policy. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Mexican economy grows 0.6pc in 1Q


30/04/25
News
30/04/25

Mexican economy grows 0.6pc in 1Q

Mexico City, 30 April (Argus) — Mexico's economy expanded at an annualized rate of 0.6pc in the first quarter, with solid growth in the agriculture sector offsetting a slowdown in industry. The result came in at the high end of analyst estimates and slightly above the 0.5pc GDP growth reported by statistics agency Inegi for the fourth quarter of 2024. Still, it marks the second-slowest quarterly growth in the past 16 quarters. Most of the first quarter's GDP growth came from a 6pc expansion in the agricultural sector, which more than reversed the 4.6pc contraction recorded in the fourth quarter of 2024. The industrial sector — including mining, manufacturing and construction — shrank for a second straight quarter, contracting by 1.4pc after a 1.2pc drop in the previous quarter. Manufacturing faced tariff-related uncertainty during the quarter, though investment in the sector had already been slowing for months. The contraction was softened by manufacturers ramping up production ahead of US tariffs, with the risk of trade-driven inflation also pushing builders to contain construction costs, according to market sources. These effects are expected to fade in the second quarter and worsen in the third if high US tariffs on Mexican goods persist, said Victor Herrera, head of economic studies at finance executive association IMEF, "especially as supply chains are hit by dwindling inventories." Services expanded by an annualized 1.3pc in the first quarter, compared with a 2.1pc growth in the fourth quarter of 2024. This marks the slowest growth in services since the end of Covid-19 restrictions in early 2021. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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CME launches Black Sea CVB Wheat Argus futures


30/04/25
News
30/04/25

CME launches Black Sea CVB Wheat Argus futures

Paris, 30 April (Argus) — Traders will be able to trade Black Sea wheat futures and options on the CBOT exchange from 2 June, CME Group said, via new contracts that are financially settled on the Argus 12.5pc protein wheat fob CVB price. The final settlement price will be equal to the arithmetic average of the "12.5pc Romania-Bulgaria fob CVB" under the heading "Wheat $/t" as published by Argus in the AgriMarkets report for each day that it is determined from and including the first calendar day of the contract month to and including the 15th calendar day of the contract month. The settlement is in US dollars per tonne. A total of seven monthly contracts will at all times be available for the following contract months — March, May, July, September and December. Trading terminates on the 15th calendar day of the contract month. Daily settlement will take place on each contract business day at 18:30 CET (17:30 GMT). The contracts are cleared through CME Clearing. The CBOT exchange suspended trading and clearing of all Black Sea futures and options in August 2023. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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China issues first export quota for SAF


30/04/25
News
30/04/25

China issues first export quota for SAF

Shanghai, 30 April (Argus) — Chinese biodiesel and sustainable aviation fuel (SAF) producer Jiaao Entrotech said today it has received government approval to export SAF from Lianyungang port. The producer has a quota to export 372,400t of SAF this year. It can export the SAF under the same harmonised system (HS) codes as conventional jet fuel, such as 27101911. The new SAF quota is an additional allocation and will not affect the volume of jet fuel export quotas that are regularly allocated to Chinese refiners. Jiaao's SAF plant is located at Guanyun in Lianyungang, a port in east China's Jiangsu province. The plant has 500,000 t/yr of operational capacity. This is the first time the Chinese government has issued an export quota for SAF. Other Chinese SAF producers in the government's approved list will also receive export quotas after further evaluation by Beijing, according to market participants. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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