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Nations, groups ramp up efforts on climate unity

  • Market: Electricity, Emissions
  • 25/04/25

Transition aligning with energy security and more Chinese climate leadership may reinforce co-operation despite the US withdrawal, writes Georgia Gratton

The UN, IEA and countries including the UK and Brazil — which hosts this year's UN Cop 30 climate summit — stepped up efforts this week to demonstrate common ground and build unity on climate action and the energy transition.

Organisations and countries are looking to capitalise on areas of commonality in order to preserve climate action, as the US administration repeatedly pushes back on measures to tackle climate change and moves to curb the energy transition. A virtual meeting convened this week by UN secretary-general Antonio Guterres and Brazil's president, Luiz Inacio Lula da Silva, drew 17 world leaders to commit to keeping climate action a key priority. "Leaders need reassurance that they're not acting alone," a senior UN official says.

"Collaboration and multilateralism still matter," a senior Brazilian official says. Cop 30, which will take place in November in the Amazonian city of Belem, will "have a different dynamic", the official adds. "We want to prove that multilateralism is not only about negotiating documents… but about making them real."

China's president, Xi Jinping, participated in this week's high-level meeting, the UN confirmed. While the US — the world's second-highest emitter — has withdrawn from the Paris climate agreement, China is continuing to step forward on climate action. It remains the highest-emitting country by some way, but this week reiterated a commitment to a new climate plan for the period to 2035, covering "all economic sectors and all greenhouse gases", Guterres said. The EU this week noted China's co-operation at Cop 29 — where it was widely viewed as projecting leadership on climate — setting the scene for new climate alliances.

While the US government pushes back on clean energy and climate action, support for the energy transition remains strong at sub-national level, from many US state governors, and from the private sector. A poll from three NGOs, including the UK's E3G, this week found that of nearly 1,500 business executives — including in the US — 97pc supported a transition from fossil fuels to renewable energy.

The majority of the world has held firm on climate commitments. Heads of state and government of jurisdictions including the EU, several G20 economies and developing nations committed to submitting "ambitious and robust [climate] plans", Guterres said after the meeting.

Renewable security

Organisations and countries have been careful to underline that different national circumstances will mean that jurisdictions take different approaches to tackling climate change. Although this is a key tenet of the Paris agreement, it also remains a bone of contention in multilateral talks. But the co-hosts of this week's energy security summit, the UK government and energy watchdog the IEA, put the issue front and centre.

"Different pathways for different nations should be respected," UK energy minister Ed Miliband told the summit. The almost 60 governments that the UK and IEA hosted will have "different approaches to energy security based on their nation's circumstances and policies", IEA executive director Fatih Birol said. European Commission president Ursula von der Leyen reiterated the EU's determination to double down on its energy transition, but also extended a nod to the US for its LNG supply as the bloc pivoted away from imports of Russian gas.

But many note that achieving energy security is well aligned with a transition to renewable energy. The UK's path "is a hard-headed approach to the role of low carbon power as the route to energy security", Miliband said, while the cost of renewable power is now the cheapest option for the majority of the world. "The pathway out of climate hell is paved by renewables," Guterres said.


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02/05/25

Australia's Coalition eyes power, resource funding cuts

Australia's Coalition eyes power, resource funding cuts

Sydney, 2 May (Argus) — Australia's federal Coalition opposition has announced it will cut key energy rebates and resource sector subsidies, if elected on 3 May, to reduce forecast future budget deficits. The Peter Dutton-led opposition will cut programs, including the Labor government's A$20bn ($12.8bn) Rewiring the Nation transmission plan, and the A$15bn National Reconstruction Fund aimed at underwriting green manufacturing using domestic minerals. It will also unwind electric vehicle tax concessions to save A$3.2bn, and cancel planned production tax credits for critical minerals processing and green hydrogen estimated to cost A$14.7bn. Combined savings measures will improve the budget's position by A$13.9bn over the four years to 2028-29, the Coalition said on 1 May, cutting debt by A$40bn during the same timeframe. The announcement comes as opinion polls show Australia's next federal government is likely to force one of the two major parties into minority, after a campaign where cost-of-living relief promises have trumped economic reform policy. The centre-left Labor party is more likely than the conservative Coalition to form government at the 3 May poll. It holds a thin majority of just three seats in parliament's main chamber, the House of Representatives, meaning a swing against it would force it to deal with minor parties such as the Greens and independent groupings. Promising a stable government, as Australia emerged from Covid-19, Labor had benefited from a resources boom as Russia's invasion of Ukraine led LNG and coal receipts to skyrocket and China's emergence from lockdowns revitalised its demand for iron ore, which jointly form the nation's main commodity exports. But as markets adjust to a period of protectionist trade policy and predictions of a slowdown in global growth abound, economists have criticised the major parties' reluctance to embrace major reform on areas such as taxation, while continuing to spend at elevated levels post-pandemic. Australia's resource and energy commodity exports are forecast to fall to A$387bn in the fiscal year to 30 June 2025 from A$415bn in 2023–24. The Office of the Chief Economist is predicting further falls over the next five years, reaching A$343bn in 2029-30, lowering expected government revenue from company tax and royalties. Gas The Coalition has pledged a domestic reservation scheme for the east coast, forcing 50-100PJ (1.34bn-2.68bn m³/yr) into the grid by penalising spot LNG cargoes. Australia's upstream lobby has opposed this, but rapidly declining reserves offshore Victoria state mean gas may need to be imported to the nation's south, depending on the success of electrification efforts and an uncertain timeline for coal-fired power retirements. Labor has resisted such further gas interventions , but it is unclear how it will reverse a trend of rising gas prices and diminishing domestic supply, despite releasing a future gas plan last year. The party is promising 82pc renewables nationally by 2030, meaning it will have to nearly double the 2025 year-to-date figure of 42pc. This could require 15GW of gas-fired capacity by 2050 to firm the grid. On environmental policy, narrowing polls mean Labor's likely partners in government could be the anti-fossil fuel Greens and climate-focused independents — just some of the present crossbench of 16 out of a parliament of 151. The crossbench may drive a climate trigger requirement in any changes to environmental assessments, which could rule out new or brownfield coal and gas projects. Coal has been conspicuously absent from policy debates, but Labor has criticised the Coalition's nuclear energy policy as expensive and unproven, while the Coalition has said Labor's renewables-led grid would be unstable and costly because of new transmission requirements. The impact of the US tariff shock that dominated opening days of the month-long election campaign remains unclear. Unlike Canada, Australia is yet to be directly targeted by US president Trump's rhetoric on trade balances and barriers. But the global unease that has set in could assist Labor's prime minister Anthony Albanese, as he presents an image of continuity in an uncertain world economy. Australia's main exposure to Trump tariffs is via China, its largest trading partner and destination for about 35pc of exports, including metal concentrates, ores, coal and LNG. A downturn in the world's largest manufacturer would spell difficult times ahead for Australia, as it grapples with balancing its budget in a normalising commodity market. By Tom Major 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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Brazil's energy transition spending drops in 2024


30/04/25
News
30/04/25

Brazil's energy transition spending drops in 2024

Sao Paulo, 30 April (Argus) — Brazil's mines and energy ministry's (MME) energy transition spending shrank by 83pc in 2024 from the prior year, while resources for fossil fuel incentives remained unchanged, according to the institute of socioeconomic studies Inesc. The MME's energy transition budget was R141,413 ($24,980) in 2024, down from R835,237 in the year prior. MME had only two energy transition-oriented projects under its umbrella last year: biofuels industry studies and renewable power incentives, which represented a combined 0.002pc of its total R7bn budget. Still, despite available resources, MME did not approve any projects for renewable power incentives. It also only used 50pc of its budget for biofuel studies, Inesc said. Even as supply from non-conventional power sources advances , most spending in Brazil's grid revamp — including enhancements to better integrate solar and wind generation — comes from charges paid by consumers through power tariffs, Inesc said. Diverging energy spending Brazil's federal government also cut its energy transition budget for 2025 by 17pc from last year and created a new energy transition program that also pushes for increased fossil fuel usage. The country's energy transition budget for 2025 is R3.64bn, down from R4.44bn in 2024. The new program — also under MME's umbrella — has a budget of around R10mn, with more than half of it destined to studies related to the oil and natural gas industry, Inesc said. A second MME program — which invests in studies in the oil, natural gas, products and biofuels sectors — has an approved budget of R53.1mn. The science and technology ministry is the only in Brazil that increased its energy transition spending for 2025, with R3.03bn approved, a near threefold hike from R800mn in 2024. Spending will focus on the domestic industry sector's energy transition, Inesc said. Despite hosting the UN Cop 30 summit in November, Brazil has constantly neglected to address the phase-out of fossil fuels, drawing the ire of climate activists . By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil's Biomas advances forest restoration project


30/04/25
News
30/04/25

Brazil's Biomas advances forest restoration project

Sao Paulo, 30 April (Argus) — Brazilian reforestation company Biomas cleared its first restoration project for a 1,200-hectare (ha) area of the Atlantic rainforest in southern Bahia state. The Mucununga project, which will require initial investments of R55mn ($9.7mn), involved planting 70 native species, with the goal of regenerating the ecosystem in the region. The project is in one of the most biodiverse regions on the planet, where only 26pc of native vegetation remains intact. The project is part of the Biomas' broader goal of restoring 2mn ha of tropical forest over the next 20 years. The project will generate 500,000 carbon credits over the next 20 years, the sale of which will be used to finance other restoration projects. Brazilian pulp company Veracel owns the land for the project, across eight municipalities in the state. Biomas was created in 2022 and its shareholders include Brazilian companies such as miner Vale, pulp and paper company Suzano, bank Itau and meat packer Marfrig. Mucununga is one of many tropical forest restoration projects underway in Brazil and will help contribute to Brazil's Planaveg program, which has the goal of restoring and reforesting 12mn ha by 2030. Brazil is seeking to showcase its potential to provide carbon credits and offsets through the protection of its standing forests and the restoration of previously deforested areas ahead of the UN Cop 30 climate summit, which will be held in northern Para state in November. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Nemos commit to 15-minute settlement in power SDAC


30/04/25
News
30/04/25

Nemos commit to 15-minute settlement in power SDAC

London, 30 April (Argus) — Eleven nominated electricity market operators (Nemos) have confirmed their "readiness and commitment" to proceed with a 15-minute settlement in the single day-ahead coupling (SDAC) market on 11 June, according to a statement given to Argus . The co-signing Nemos — Oslo-based Nord Pool, Czech OTE, Austrian EXAA, Greek Enex, Italy's GME, Spain's Omie, Bulgarian Ibex, Poland's TGE, Slovakian Okte, Croatia's Cropex and Romanian BRM — confirmed that they "do not share the misgivings" about the 15-minute settlement transition expressed by European power exchange Epex Spot earlier this month , the Nemos told Argus . Nord Pool previously told Argus on 17 April that it was "confident and ready" to deliver 15-minute trading. The market operators do "not recognise" the problems cited by Epex and are sure that the "necessary infrastructure and processes" are in place to implement the move on time successfully. Instead, the co-signed Nemos stressed that the transition is a "pivotal advancement" and any delay risks "hinder[ing] progress" towards a better-integrated market. Specifically, the signatories clarified that the decoupling registered in some tests and cited by Epex Spot was not "due to a lack of reliability" in the system. Instead, they attributed this to "internal local testing issues of certain parties in the initial [testing] stage". The Nemos added that all performance tests of the central matching algorithm (Euphemia) were "successfully completed and validated by all parties, including Epex Spot". The co-signed Nemos noted that most test scenarios, "both functional and procedural", were "successfully completed and validated", adding that any reference to the implicit intraday auction (IDA) decoupling scenario is "misleading and inappropriate" as these were "caused by local issues" and the "time allocated to IDA executions" is less than 25pc of the "overall time available for SDAC". By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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