Generic Hero BannerGeneric Hero Banner
Latest market news

Washington state race may shift climate priorities

  • Market: Emissions
  • 29/10/24

Washington state's gubernatorial race is likely to lead to a change in the attention given to climate change-related policy as governor Jay Inslee (D) exits office.

The race between state attorney general Bob Ferguson (D) and former US representative and King County Sheriff Dave Reichert (R) remains one-sided as it approaches election day 5 November, in a solidly Democrat-leaning state. Ferguson retains a wide lead over his opponent, with a Cascade PBS/Elway survey earlier this month showing 56pc of likely voters supporting the attorney general and 37pc backing Reichert.

Washington voters have not elected a Republican governor since 1980, backing Democrats in 10 straight elections.

"The numbers are going to be really hard for him because there is so many people that will see whoever's name has a ‘D' next to it and that is how they'll vote," said Todd Donovan, a professor of political science at Western Washington University.

While Democrats have a good chance of retaining the governor's seat, it is unlikely that a Ferguson administration will feature the same focus on climate change as his predecessor.

Inslee, a three-term governor, has been a vocal supporter of climate policies such as the state's Climate Commitment Act dating back to his time in the US House of Representatives. That includes an unsuccessful 2020 presidential bid, which focused heavily on climate and clean energy.

The state climate law authorized the "cap-and-invest" program, which launched in January 2023 and requires large industrial facilities, fuel suppliers and power plants to reduce their emissions by 45pc by 2030 and by 95pc by 2050, from 1990 levels.

But climate policies remain a distant-third campaign issue for both candidates, with each focusing more on abortion, housing and crime.

Climate is an area where Inslee led the conversation, and not the party, says Donovan.

"The Democrats are more in defensive mode defending [Inslee's] legacy and the climate policies in the face of these initiatives," he said of the current election.

This defense has centered around Initiative 2117, which would repeal the cap-and-trade program. Democrats have focused the campaign around stopping the initiative on how it could affect funding, including $3.3bn lawmakers appropriated for climate-related projects earlier this year, rather than the impacts of climate change, Donovan said.

Ferguson supports retaining the program but has called for changes, such as ensuring farmers receive the promised exemption from emissions obligations for fuel, which was a point of contention in the original rollout of the program.

Reichert supports the repeal of the program, citing it as adding to higher consumer fuel prices in the state while putting Washington on an unrealistic timeline for transitioning off fossil fuels, he said during an 18 September debate.

The move is part of Reichert's larger platform, which focuses on limiting state taxes and supporting small businesses.

"We can't put a predesignated date on when we are going to change things and expect things just to work," Reichert said.

Ferguson has tried to position his opponent as a climate change denier in recent campaign appearances and materials, citing a recording of Reichert denying human impact on the climate.

Recent polling in the state shows a softening of support for Initiative 2117, suggesting voters will decide to retain the cap-and-trade program.

If that happens, a Ferguson administration may seek to change the shape of the Washington's carbon market on the other side of the election.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

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

New German climate minister stresses nature angle


07/05/25
News
07/05/25

New German climate minister stresses nature angle

Berlin, 7 May (Argus) — Germany's new federal minister for the environment, climate action, nature conservation and nuclear safety today stressed the importance of "healthy nature" to protect the climate, and of renewable energies and "innovative" technologies to reduce carbon emissions in Germany. Environment minister Carsten Schneider, of the co-ruling left-of-centre SPD party, was sworn in on Tuesday evening with his cabinet colleagues. Schneider said he is looking forward to "driving forward climate action in the coming years, and to promoting the preservation and improvement of our natural resources in nature and the environment, for soil, water and air". Schneider said it is "good and right" to once again have national and international climate action, along with nature conservation and environmental protection, bundled in the environment ministry. Germany's last government split the climate dossier between the economy ministry, which was given the climate action portfolio, and the foreign ministry, which dealt with international climate policy. Previous economy minister Robert Habeck of the Green party last month criticised the decision to exclude climate action from the economy ministry, emphasising the "interlocking" between climate action, industry and energy policy. Schneider today underlined the crucial importance of "ambitious marine protection", and of continuing the previous ministry's natural climate protection action programme to boost the "important" ecosystems in forests, moors and bodies of water. The ministry will support cities and municipalities on nature conservation and climate adaptation, he said. Schneider made no mention of carbon markets or emissions trading systems. Schneider, the former special envoy for Germany's eastern states, is a budget expert with no climate or environment background. His permanent junior minister is Jochen Flasbarth, former permanent junior minister at the development ministry and a permanent junior minister at the environment ministry between 2013-21, at a time when the environment minister was responsible for climate policy. Flasbarth was involved in international climate negotiations, including the UN Cop 21 climate summit in Paris in 2015. Flasbarth is also a former president of federal environment office UBA. Flasbarth as junior development minister urged richer developing countries such as China or Saudi Arabia to contribute more to international climate finance . By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Energy-related methane emissions not falling: IEA


07/05/25
News
07/05/25

Energy-related methane emissions not falling: IEA

Paris, 7 May (Argus) — Emissions of the greenhouse gas methane from the energy sector did not fall in 2024 despite widespread pledges to cut them, as few countries have delivered solid plans, according to energy watchdog the IEA. Methane emissions from the fossil fuel sector totalled around 120mn t last year, the organisation said in its global tracker released today. This is in line with emissions in recent years, which have held roughly steady since 2019. The gas has contributed to around 30pc of human-induced global warming since the industrial revolution, the agency said. Four countries — China, Russia, the US and Iran — were responsible for more than 50pc of fossil fuel-related methane emissions last year, with a 20pc, 16pc, 11pc and 5pc share, respectively. Fossil-fuel related methane emissions have held steady, but methane intensity has dropped slightly since 2019, as hydrocarbon production has increased, the IEA said. The watchdog has brought new emissions sources within its remit, integrating emissions from abandoned facilities, including coal mines, for the first time. These sites were responsible for 7.7mn t of emissions in 2024, it found, of which 70pc comes from just three countries — China with 36pc, the US with 21pc and Russia with 12pc. Around three quarters of global hydrocarbon by country of origin, and half by producing firm, falls under voluntary agreements to cut methane emissions, including the Global methane pledge aiming to cut emissions by 30pc by 2030 from 2020. Only 5pc of oil and gas emissions is currently produced under verifiable near-zero emissions standards, the IEA said. It has doubled its estimate of methane released by bioenergy, to 20mn t from 10mn t, largely from incomplete combustion of traditional biomass, with India accounting for a fifth of the total. Around 2mn t comes from biogas and biomethane. Leaks from biogas and biomethane production sites can undermine or entirely cancel out the benefit of switching to these fuels from natural gas, it said. It estimates methane intensity from biogas and biomethane — the proportion of produced gas which leaks — at 8pc and 4pc in Asia-pacific and Europe respectively, the two leading regions in the sector. The IEA estimates that 30pc of fossil fuel-related emissions could have been abated at no net cost, down from its estimate of 40pc of last year because of falls in gas prices. The current round of updates of Nationally Determined Contributions (NDCs) — plans to cut emissions — offers an opportunity to increase ambition, the IEA said. Only 30 NDCs as of 2024 laid out specific measures for targeting methane, while only nine had precise targets. But China last year announced that its NDC would cover all greenhouse gases. US methane The IEA predicts a 35pc fall in US energy-related methane emissions by 2030, despite rollbacks of Biden-era methane initiatives since the beginning of Donald Trump's second presidency. Trump in March blocked a rule which would have obliged producers to pay $900/t for methane emissions, slated to cut fugitive emissions from the US' sprawling gas industry. But some state laws remain on the books, the IEA said, such as limits to venting and flaring in New Mexico and Colorado. And some US firms are still members of emissions cut partnerships such as the UN methane initiative and the oil and gas decarbonisation charter . US producers can still deploy abatement projects which have a positive rate of return, allowing more gas to be brought to market, the IEA said. But lower gas prices in the US compared to prevailing global markets could lessen the incentive for US producers to cut emissions in the absence of binding regulations. By Rhys Talbot Fossil fuel-related methane emissions, 2024 mn t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Australia’s CER sees disinterest in carbon trading tool


07/05/25
News
07/05/25

Australia’s CER sees disinterest in carbon trading tool

Sydney, 7 May (Argus) — Australia's Clean Energy Regulator (CER) plans to work with existing carbon credit trading platforms to potentially link them to its new registry, following a lack of market interest in a carbon credit trading tool proposed late last year. The CER did not see "a lot of enthusiasm" for the use of a financial instrument developed by the Australian Securities Exchange (ASX) as a trading model for Australian Carbon Credit Units (ACCUs), chair and chief executive David Parker said on 7 May at lobby group Carbon Market Institute (CMI)'s Carbon Farming Industry Forum in New South Wales, Australia. "What people did say was that they wanted us building up infrastructure… linking [over-the-counter] trading platforms into our new registry," Parker noted. The CER had previously planned to develop and operate the so-called Australian Carbon Exchange for spot ACCU transactions, but had already indicated it pushed back on the idea when it consulted on the trading tool late last year. Its proposal would see participants using a Clearing House Electronic Subregister System (CHESS) Depository Interest (CDI) — a mechanism used by the ASX to allow the trading of interests in bonds and some international shares on the exchange. Under the proposed model, market participants would not be required to have a registry account to buy beneficial interests in ACCUs through CDIs. They would be able to trade the CDIs multiple times and would only need registry accounts if they needed to convert the CDIs into ACCUs for actual delivery. Currently, climate solutions and markets firm Core Markets, brokerage firm Jarden, and environmental marketplace Xpansiv's CBL each have separate trading platforms for ACCUs. Exchanges ASX and CME last year launched separate futures contracts for physically-deliverable ACCUs, although trading interest has been very limited so far. Core Markets is working on developing its platform so that it would be able to potentially link to the CER's registry in the future, chief executive Chris Halliwell told Argus on the sidelines of the event on 7 May. The CER launched its new registry late last year. It started issuing the new safeguard mechanism credit units into the new registry, and plans to transfer ACCUs from the existing Australian National Registry of Emissions Units later this year. New units and certificates such as renewable energy guarantees of origin and biodiversity certificates under the nature repair market will be added to the new registry, while large-scale generation certificates and small-scale technology certificates will continue in the renewable energy certificate registry. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US EIA will not release international outlook in 2025


06/05/25
News
06/05/25

US EIA will not release international outlook in 2025

Washington, 6 May (Argus) — The US Energy Information Administration (EIA) no longer expects to publish one of its major energy reports this year after losing some of its staff through President Donald Trump's efforts to downsize the federal workforce. The EIA does not plan to publish its International Energy Outlook (IEA) — which models long-term global trends in energy supply and demand — this year because of a loss of staff responsible for producing the report, according to an internal email initially reported by the news outlet ProPublica . The EIA confirmed the authenticity of the email. "At this point, you can assume that we will not be releasing the IEO this year," the EIA's Office of Energy Analysis assistant administrator Angelina LaRose wrote in the 16 April email. "This was a difficult decision based on the loss of key resources." Oil and gas producers, traders, utility companies, federal regulators and foreign governments have come to rely on the data and models from the EIA, an independent agency within the US Department of Energy. The 2025 version of the IEO might still be published early next year, the EIA said. The agency for now is focusing on trying to "preserve as much institutional knowledge as possible" with an "all hands-on deck" effort under which remaining staff will document models and procedures on long-term modeling, LaRose wrote in the email. Trump and his administration have worked to cut the size of the government's workforce through voluntary buyouts and a process known as a reduction in force. The EIA has yet to say how many personnel it has lost, but about a third of the agency's 350 staffers have accepted voluntary buyouts, according to a person familiar with the situation. The White House last week proposed an 18pc budget cut for the non-nuclear portions of the Department of Energy, but has yet to say if it is seeking to cut spending at the EIA. Last month, the EIA released its premier report, the Annual Energy Outlook , but omitted its traditional in-depth analysis. A technical issue on 1 May delayed the release of a key natural gas storage report by more than three hours, the EIA said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

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