New Zealand creates climate fund

Market: Coal, Emissions, Hydrogen
17/05/22

The New Zealand government has created a NZ$4.5bn ($2.86bn) fund to spend on measures to lower greenhouse gas (GHG) emissions such as funding programmes to accelerate the take-up of electric vehicles (EVs), end the use of coal and financing studies on developing the country's hydrogen strategy and its offshore wind power generation sector.

The Climate Emergency Response Fund (CERF) will be funded from revenue generated from its Emissions Trading Scheme, New Zealand prime minister Jacinda Ardern said.

Around NZ$1.2bn will be spent on the transport sector, to support the take-up of EVs, promote greater use of public transport and cycling and decarbonise New Zealand's freight system, New Zealand climate change minister James Shaw said.

New Zealand plans to introduce zero emissions buses from 2025 and have the national public transport fleet decarbonised by 2035, Shaw said. It plans to reduce emissions from freight transport by 35pc by 2035.

New Zealand also intends to end its reliance on coal with a ban on new low to medium temperature coal boilers and a phase out of existing ones by 2037.

The country's latest audited annual GHG emissions were 78.78mn t of carbon dioxide equivalent (CO2e) in 2020, 20.8pc up from 65.19mn t of CO2e in 1990 but down 3.5pc or by 2.84mn t from 2019 levels.

New Zealand's energy sector accounted for around 40pc of the country's emissions and around 50pc is derived from the agricultural sector.

The announcement of the CERF funding was part of the New Zealand government's budget for the 2022-23 fiscal year to 30 June and came after last week's launch of the government's GHG emissions targets for three periods up until 2035.

The first New Zealand GHG emissions budget for 2022-25 sets average emissions at 72.4mn t/yr of CO2e or 8pc below 2020 levels.

By Kevin Morrison

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17/03/25

EU prepares CBAM export scheme

Brussels, 17 March (Argus) — The European Commission is preparing a "solution" for exported goods under the bloc's carbon border adjustment mechanism (CBAM), to be presented before the end of the year. The commission will also expand the scope of the CBAM to "certain" steel and aluminium-intensive downstream products. The changes to the CBAM will be announced as part of a European steel and metals plan. In a draft of the plan to be formally presented on 19 March, the commission points to the need to address the problem of carbon leakage for CBAM goods exported from the EU to non-EU countries. The draft also notes that the commission is currently "quantifying" risks, before proposing an extension of the CBAM to "certain" steel and aluminium-intensive downstream products, so as to address the risk of European producers relocating outside the bloc to avoid higher carbon costs. The metals plan also announces an anti-circumvention strategy for the CBAM to be presented in the second half of 2025. The commission points to the risk of goods from low-carbon production facilities in non-EU countries being redirected to European customers, while carbon-intensive production continues for other markets. The metals plan also points to the risk of "greenwashing" carbon accounting practices, with "electro-intensive metals production benefiting from market-based instruments to appear low-carbon". The commission put forward proposals last month to simplify the CBAM, exempting some 90pc of the firms currently covered by the mechanism. 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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Timing for EU's 2040 climate goal slips

17/03/25

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17/03/25

Timing for EU's 2040 climate goal slips

Brussels, 17 March (Argus) — The European Commission appears to have pushed back an official proposal for a 2040 climate target for the EU, which will further delay the bloc's submission of a 2035 climate plan to the UN. The commission's agenda does not include the presentation of a legal proposal for a 2040 climate target before the end of the first quarter. The commission in February 2024 confirmed its preference for a 90pc cut in greenhouse gas emissions (GHGs) by 2040, from a 1990 baseline — but this was not a formal proposal. The commission had scheduled an amendment to the European Climate Law for the first quarter of 2025. That amendment would write an intermediate target for 2040 into EU law. The 2040 target would also provide the basis for the EU's updated nationally determined contribution (NDC) — or climate plan — to UN climate body the UNFCCC. Countries and jurisdictions were expected to submit updated NDCs, covering up to 2035, to the UNFCCC by 10 February. Officials said work is "ongoing" on the bloc's 2040 climate target. It would be presented "sooner rather than later" and there is still "time left until the end of the first quarter". An EU source indicated reluctance to present a 2040 climate plan before Poland's presidential elections on 18 May, which may have a runoff on 1 June. Poland chairs meetings of EU ministers until 1 July. The source also said several other parties to the UNFCCC have missed the 10 February deadline to submit their 2035 emissions reduction targets. 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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Support for 45V solidifies ahead of US budget tussle

17/03/25

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17/03/25

Support for 45V solidifies ahead of US budget tussle

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Brazil to pilot reforestation concession

17/03/25

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17/03/25

Brazil to pilot reforestation concession

Sao Paulo, 17 March (Argus) — Brazil's Para state in the Amazon basin will concede reforesting 10,000 hectares (ha) in the Triunfo do Xingu environmental reserve as part of efforts to protect more rainforest ahead of the UN Cop 30 climate summit in November. The 40-year concession will require R258.3mn ($45.3mn) in investments and capture an estimated 3.7mn metric tonnes (t) of CO2 equivalent (tCO2e)/yr, according to the Para state government. The 1.6mn ha Triunfo do Xingu reserve, which was created in 2006, has seen significant environmental degradation in recent years from illegal deforestation. Last year, the reserve lost 1,400km² (870 mi²) to illegal deforestation, the bulk of which was converted into pastureland. The concession, which will be Brazil's first for reforestation, will be a test case for the government's efforts to recover its tropical forests and is possible because of legislation approved in 2023, which allows carbon offsets to be issued on public lands. The auction will take place on 28 March at the B3 stock exchange, in Sao Paulo state. The winner of the project will be allowed to sell carbon offsets and environmental services credits, which will be generated by reforesting and preserving the forest. The sale of some forestry products is also approved. The Para state government estimates that the concession will generate gross revenues of R21.7mn/yr. Para will also sell two other 10,000ha concessions later this year, it said. Brazil has continued to reduce deforestation in the Amazon forest. It lost just 80.9km² of Amazon rainforest in February, down more than 64pc from the same month last year. February deforestation was the lowest on record, according to the science and technology ministry's national space institute INPE. Brazil's goal is to eliminate all deforestation by 2030. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Indonesia’s RMK raises 2024 coal loading, sales volumes

17/03/25

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17/03/25

Indonesia’s RMK raises 2024 coal loading, sales volumes

Manila, 17 March (Argus) — Indonesian coal logistics and mining firm RMK Energy raised its coal loading and sales volumes in 2024 compared with 2023 on the back of higher coal production out of Sumatra. The total volume of coal loaded onto barges rose by 19pc to 9.02mn t of coal in 2024, up from 7.56mn t a year earlier, the company said. The increase was because of higher output from mining companies in Sumatra that used RMK for its logistics service, according to the firm. The company's total coal sales rose by 19pc to 2.81mn t in 2024. This was despite lower coal output from its coal mines, which fell by 13pc to 900,120t in 2024 from 1.035mn t in 2023. The decrease was because the company opted to focus on developing new areas, RMK said. The firm moved more overburden material in 2024, which resulted in an increase in the mine's strip ratio and coal cash cost. RMK sourced its coal from other mining companies through its trading arm to offset this, the company said. The company produces GAR 3,000-4,200kcal/kg coal which is sold mainly for blending purposes. RMK has set higher operational targets for 2025 on projections of increased output from Sumatra's mining companies and in order to offset continued weak prices of coal. Total coal sales are targeted to reach 3.8mn t in 2025, a 35pc increase on the year. Barge loading volumes are targeted to reach 11mn t, a 24pc increase on the year. RMK will also focus on improving its logistics infrastructure. This includes the integration of new coal mines such as the Wiraduta Sejahtera Langgeng (WSL) and Duta Bara Utama (DBU) into the company's dedicated coal hauling road as well as upgrades to loading and unloading stations to support higher coal transportation volumes, the company said. By Antonio delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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