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Brazil carbon credits miss price expectations

  • Market: Biofuels, Emissions, Oil products
  • 29/06/20

Brazil's B3 commodities exchange registered its second sale of Cbio carbon credits at prices below initial market expectations, as the biofuels industry awaits a revised 2020 official target for sales of the credits to better match lower demand in the Covid-19 scenario.

The sale of 2,000 Cbios at R15 ($2.75) per credit was registered under the non-required section of the credits' trading platform, well below the estimated price of $10 that had been projected as their likely price prior to open trading.

Brazil's fuel distributors must buy the credits to offset their annual sales of fossil fuels as part of the Renovabio biofuels law that took effect this year.

The exchange specifies volumes and prices, but not the identity of buyers and sellers of the credits.

So far, biofuel producers have registered over 1mn Cbios on the B3 exchange.

Each credit is equivalent to one metric ton of CO2 removed from the atmosphere through the use of biofuels such as ethanol and biodiesel instead of gasoline and other fossil fuels.

The first sale of the credits registered was for 100 Cbios at a price of R50 per credit on 12 June, but it was seen as a symbolic trade.

In April, the mines and energy ministry called for a review of the official target of 28.7mn Cbios this year, saying there was no guarantee that biofuel producers will sell enough biofuel to generate the targeted number of credits.

On 5 June, the ministry began public hearings to revise the target after proposing to reduce it by 50pc to 14.5mn for this year.

Despite the slow start to trading, the industry remains optimistic about Renovabio. "This is a game-changing program for the cane sector, regardless of the target for 2020," said Luiz Carlos Carvalho, the president of cane consultancy firm Canaplan.


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10/03/25

Brazil ignores fossil fuel phase-out in Cop 30 letter

Brazil ignores fossil fuel phase-out in Cop 30 letter

Sao Paulo, 10 March (Argus) — Climate activists praised Brazil's stance of making UN Cop 30 a "turning point" for real climate change commitments but criticized the presidency's letter for turning a blind eye to fossil fuels' leading role in global warming. The summit's president Andre Correa do Lago unveiled on Monday a letter addressing the event's goals and outlooks, which includes boosting climate financing to $1.3 trillion/yr from the target stipulated at Cop 29 of $300bn/yr. "Lago calls on foreign countries — especially the US — to leave individuality and irresponsibility behind in exchange for cooperation and our planet's future," scientist Karin Bruning — a graduate of the University of Heidelberg and the Massachusetts Institute of Technology — said. "However, the letter has no use if Brazil does not pull its own weight." Bruning recalled Brazilian president Luiz Inacio Lula da Silva's [public feud](http://direct.argusmedia.com/newsandanalysis/article/2657369 with the country's environmentalist watchdog Ibama regarding the exploration in Brazil's equatorial margin region. "A country with so much renewable energy available cannot look at past solutions such as exploring and pushing for fossil fuels," Bruning said. She also highlighted the importance of respecting technical and scientific decisions on matters such as oil exploration. Environmental concerns have always been at the center of the equatorial margin debate, as it stands near a freshwater barrier reef. State-controlled Petrobras has long been trying to explore the area's Foz do Amazonas basin — which holds an estimated 10bn bl of crude, according to energy research bureau Epe — but has struggled to receive the environment licenses to do so. Ibama last denied the company a request to drill in the area in May 2023. Brazilian climate think tank Observatorio do Clima called the letter "inspiring," but added that it "excludes the elephant in the room." It recognized the letter as a "relief for giving the Paris Agreement negotiations to professionals who understand the gravity of the moment" but bashed it for keeping fossil fuels' gradual stoppage out of Cop 30's priorities list. Still, Correa do Lago's letter was celebrated for recognizing "the scale of the challenge and the urgency of response," according to climate change think-tank E3G's associate director Kaysie Brown. Holding on to past pledges Previous Cop agreements and global stocktakes (GST) — a five-yearly checkpoint agreed upon in the 2015 Paris Agreement — were ignored and pushed back against in Baku's final text. Correa do Lago's letter focused on rolling back decisions regarding developing countries and increasing financing for them, which has long been one of the Brazilian government's priorities. This includes the climate financing target of $1.3 trillion. "We do have pending issues to solve at Cop 30, notably the UAE dialogue on implementing the GST outcomes and the just transition work programme," Correa do Lago said in his letter. "The GST is an invaluable legacy that unites us. We must all continue to subscribe to it as the ultimate benchmark for climate implementation." 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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Vitol's Sarroch refinery crude receipts at 6-year high


10/03/25
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10/03/25

Vitol's Sarroch refinery crude receipts at 6-year high

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US SAF projects will be protected: United Airlines


10/03/25
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10/03/25

US SAF projects will be protected: United Airlines

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Tanker and cargo vessel collide in North Sea: Update


10/03/25
News
10/03/25

Tanker and cargo vessel collide in North Sea: Update

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German gasoil prices fall to December lows


10/03/25
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10/03/25

German gasoil prices fall to December lows

Hamburg, 10 March (Argus) — Heating oil sales in Germany rose in the week to 9 March as prices fell after the US government announced tariffs against trading partners. Low water levels and strikes significantly restrict barge traffic on the Rhine river and in the canal region. The US government's announcement of tariffs on imports from Canada, Mexico, and China in the week ending 9 March caused uncertainty in markets and fueled fears of a slowdown in international trade. Ice gasoil futures fell to their lowest since the end of December, and German domestic prices did likewise. Falling prices revived heating oil demand, despite carnival celebrations in western Germany. Rising temperatures had previously subdued demand. Traded spot volumes reported to Argus rose by 35pc week on week. Diesel sales are less susceptible to price fluctuations. Volumes fell by 2.5pc nationwide after increased agricultural requirements had already boosted demand the previous week. Barge supplies are significantly restricted. Low Rhine water levels now limit the permissible cargo volume upstream from the Kaub gauge to about 55pc. This is reflected in correspondingly rising freight rates. Public sector employees are striking from March 10-12 at various locks on the Rhine-Herne Canal and the Wesel-Datteln Canal. The strike will lead to significant delays in the delivery to many tank farms and subsequent backlogs, shipowners said. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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