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Australia joins global pledge to cut methane emissions

  • Market: Agriculture, Emissions, Natural gas
  • 24/10/22

The Australian government has signed the global methane pledge to cut its methane levels by 30pc by 2030 from 2020 levels, which will mean the country's significant agriculture and gas sectors will have to step up efforts to cut the potent greenhouse gas (GHG) emissions gas.

The ruling Labor government indicated in June that the nation would join more than 120 countries on tackling methane. Methane has a greater global warming potential that is 86 times higher than CO2 when averaged over 20 years and 28 times higher when averaged over 100 years.

"By joining the pledge, Australia will join the rest of the world's major agricultural commodity exporters including the US, Brazil, and Indonesia in identifying opportunities to reduce emissions in this hard-to-abate sector," Australian climate change and energy minister Chris Bowen said.

The Australian government will partner with industry to decarbonise the economy and pursue emissions reduction initiatives across energy and waste sectors including capturing waste methane to generate electricity, Bowen said.

Australian government investment in lowering GHG emissions will include up to A$3bn ($1.91bn) from the A$15bn National Reconstruction Fund to support investment in low emissions technologies and component manufacturing and agricultural methane reduction, the minister said.

Canberra will provide a further A$5mn in funding for the second stage of the methane emissions reduction in livestock (Meril) programme to develop technologies to deliver low emission feed supplements to grazing animals and determine their technical viability and commercial potential, Bowen said.

The pledge does not require Australia to focus solely on agriculture, or reduce agricultural production or livestock numbers, the minister said. The former conservative coalition government would not sign the methane pledge when it was in government up until it lost the national election in May.

"As a result of signing the pledge, the Australian government will not legislate or introduce taxes or levies to reduce livestock emissions," Bowen said.

Around 26pc of Australia's greenhouse gas (GHG) emissions in 2021 were from methane emissions, according to the latest GHG inventory data. Agricultural GHG emissions represents about 13pc of Australia's total emissions, while 42pc of the sector's emissions are from methane.

Most of this is the methane produced by cattle and other livestock through the fermentation of plants in their stomachs. Australia's expansion of LNG exports over the past decade to around 80mn t/yr have also seen an increased contribution to GHGs coming from methane emissions in the upstream sector.

The Labor government has already deepened its GHG emissions reduction target to 43pc by 2030 from 2005 levels compared with the 26-28pc cut pledged by the previous administration.

"For agriculture the pledge will reinforce our demonstrated commitment to sustainability and ongoing access key markets as an export orientated sector," National Farmers Federation (NFF) president Fiona Simon said.


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08/05/25

FinBalt gas demand down on the year in April

FinBalt gas demand down on the year in April

London, 8 May (Argus) — Combined gas demand across the Finnish and Baltic region fell by 4pc on the year in April despite gas-fired power generation rising by nearly 50pc. Aggregate consumption in Finland, Estonia, Latvia and Lithuania in April fell to 3.42TWh, down from 3.56TWh the previous year and the three-year average of 5.12TWh in 2019-21. That said, it was still higher than in both 2022 and 2023 ( see consumption graph ). Lithuania remained the region's largest consumer, as it has been for every month since June, again driven by an increase in gas-fired power generation. Average gas-fired output soared by nearly 400pc on the year in April to 254MW according to data from Fraunhofer ISE, more than making up for a 43pc drop in Finnish production ( see power table ). Following the de-synchronisation of the Baltic states from the post-Soviet Brell system, gas-fired power plants have become particularly important in the region, not just for producing electricity but also for providing ancillary services such as frequency reserves. Lithuania has the largest gas-fired fleet in the region, and its output jumped despite domestic power consumption falling by more than 5pc on the year and renewable output increasing, which allowed the country to cut its power imports last month to 104MW, from 546MW in the previous year. With power sector gas demand increasing in April but overall gas consumption in the region dropping, demand from households and industries must have been lower on the year. Weather patterns were split across the region, with lower average minimum temperatures than the previous year in Vilnius and Riga, but higher in Tallinn and Helsinki. That said, overnight lows in all four capitals were still above the 2015-24 average last month, limiting strong heating demand in the shoulder month ( see temperature table ). Traded volumes on the region's gas exchange GET Baltic rose to 1.1TWh last month, an "unusually high result for this time of year" according to the exchange's senior account manager Karolis Bagdonas. Of the overall volume, 56pc traded in Lithuania, 28pc in the joint Estonia-Latvia market area, and the remaining 16pc in Finland. The average price on GET Baltic was €39.40/MWh last month, down by around 8pc from March. GET Baltic announced in April that its full integration into the European Energy Exchange (EEX) had been delayed again until 9 September , having previously been planned for 27 May . Across all of January-April FinBalt consumption totalled 18.43TWh, down from 20.04TWh in the same period of 2024. Stocks at the region's only storage facility in Latvia ended the storage year on 1 May at 8.4TWh, below 11.3TWh on the same day last year and 9TWh in 2023, but still above all other years since 2018 ( see data and download ). The entire 100pc of capacity, amounting to just over 23TWh, had been booked for the 2024-25 storage year, but for the new 2025-26 cycle a lower 17TWh has been allocated, representing around 68pc of the cycle's total technical capacity of 24.9TWh. Consistently positive summer-winter spreads over the winter period, which gave no financial incentive to book storage, may have driven lower interest in 2025-26 capacity, although they had normalised by April. Lower overall booked volumes is despite operator Conexus managing to sell all 9TWh of the new five-year capacity product it offered in February and March . Slow start to injection season Injections into Incukalns have been weak so far this year, with not a single day of net injections until 24 April. In the previous year, there had been some brief net injections on 1-4 April at an average of 54 GWh/d, and across all of April they averaged just over 7 GWh/d. In contrast, this year's April averaged net withdrawals of 32 GWh/d across the month, with injections only on 24-30 April. This slow stockbuild has continued in the first week of May, with 35GWh of net injections on 1 May but then a flip back to very minor net withdrawals of 0.2 GWh/d on every day of 2-6 May, the latest data from GIE show. Last year, there were average net injections of 47 GWh/d on 1-6 May, and 39 GWh/d in 2021-23. Despite weak injections, overall LNG sendout across the region's three terminals of Klaipeda, Inkoo and Hamina has increased significantly from April, nearly doubling to 150 GWh/d on 1-7 May from 80 GWh/d in April. Sendout from these terminals averaged 84 GWh/d on 1-7 May last year. Rather than injecting all of the regasified LNG, some of it is being sent southward to Poland at Santaka, with exit flows at the point averaging 22 GWh/d on 1-7 May, switched from net inflows of 2 GWh/d in April. This is likely to be linked to Polish incumbent Orlen's deals to supply LNG to Ukraine's Naftogaz, of which one of the contracts specified that it would be delivered to Klaipeda and transited to the Ukrainian border . By Brendan A'Hearn FinBalt gas-fired power production MW Apr-25 Apr-24 year-on-year % change Finland 118 206 -43 Estonia 6 5 20 Latvia 85 53 60 Lithuania 254 52 388 Total 463 316 47 — Fraunhofer ISE FinBalt average minimum temps °C Apr-25 Apr-24 2015-24 avg Helsinki 0.7 0.1 0.1 Talinn 2.2 2.0 1.0 Riga 4.8 5.0 4.0 Vilnius 3.8 5.2 2.8 — Speedwell FinBalt gas demand by country GWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop 30 head urges upgraded climate co-operation: Update


08/05/25
News
08/05/25

Cop 30 head urges upgraded climate co-operation: Update

Updates with comments from Copenhagen climate ministerial London, 8 May (Argus) — The incoming president of the UN Cop 30 climate summit today called for climate co-operation to be "better equipped" to implement the Paris climate agreement and Cop decisions, including "upgraded global governance" on climate action. Cop 30 president-designate Andre Correa do Lago has called for "innovative governance approaches" and for the aggregation of "currently fragmented" efforts. This would reinforce the decision-making process for UN climate body the UNFCCC and support the implementation of the Paris agreement, he noted. Climate advocates including former UN secretary general Ban Ki Moon last year wrote an open letter to the UN calling for a reform of the Cop climate change summits which they said have failed to deliver change at the speed and scale required. "Climate change will increasingly supervene and disrupt political and socioeconomic agendas", Correa do Lago wrote in a second letter outlining his priorities for the summit, which will be held in November in Belem, Brazil. The president-designate has previously set out his hopes for Cop 30 to be "a Cop of action". Minister and leaders are "still committed to finding solutions together", Danish climate minister Lars Aagaard said today. He co-hosted a climate ministerial this week in Copenhagen, Denmark, alongside Correa do Lago, at which country representatives "worked to lay the foundation" to Cop 30. "Even though the international backdrop is marked by war and unrest, and even though we are experiencing nations pulling in a darker direction, there is still momentum for global climate action," Aagaard said. Correa do Lago acknowledged "serious geopolitical, socioeconomic, and environmental challenges", calling for reinforced multilateralism. And he set out his vision for a "Global Mutirao" — an "unprecedented" global mobilisation of "self-driven" climate action. Brazil's Cop 30 presidency has set up four "circles of leadership", including one comprised of previous Cop summit presidents, and a "circle of finance ministers". The latter, chaired by Brazil's finance minister Fernando Haddad, will offer advice to the Cop 30 presidency on climate finance issues, from "policy-making perspectives", Correa do Lago wrote. Climate finance dominated Cop 29 in Baku, Azerbaijan, last year , where countries agreed that developed nations would provide at least $300bn/yr to developing nations by 2035 for climate action and their energy transitions. Countries will this year discuss a promised "roadmap", intended to forge a path to climate finance of $1.3 trillion/yr, but this will likely lie outside formal negotiations. Correa do Lago today pointed to recent data from the World Meteorological Organisation , which confirmed that 2024 was the hottest year on record. It surpassed the previous record set in 2023. But his letter failed to mention the key driver of climate change — greenhouse gas emissions from fossil fuel consumption. Correa do Lago's first letter also neglected the topic , provoking criticism from environmental campaigners. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop 30 president urges ‘upgraded’ climate co-operation


08/05/25
News
08/05/25

Cop 30 president urges ‘upgraded’ climate co-operation

London, 8 May (Argus) — The incoming president of the UN Cop 30 climate summit today called for climate co-operation to be "better equipped" to implement the Paris climate agreement and Cop decisions, including "upgraded global governance" on climate action. Cop 30 president-designate Andre Correa do Lago today called for "innovative governance approaches" and for the aggregation of "currently fragmented" efforts. This would reinforce the decision-making process for UN climate body the UNFCCC and support the implementation of the Paris agreement, he noted. Climate advocates including former UN secretary general Ban Ki Moon last year wrote an open letter to the UN calling for a reform of the Cop climate change summits as they said they have failed to deliver change at the speed and scale required. "Climate change will increasingly supervene and disrupt political and socioeconomic agendas", Correa do Lago wrote in a second letter outlining his priorities for the summit, which will be held in November in Belem, Brazil. The president-designate has previously set out his hopes for Cop 30 to be "a Cop of action". Correa do Lago acknowledged "serious geopolitical, socioeconomic, and environmental challenges", calling for reinforced multilateralism. And he set out his vision for a "Global Mutirao" — an "unprecedented" global mobilisation of "self-driven" climate action. Brazil's Cop 30 presidency has set up four "circles of leadership", including one comprised of previous Cop summit presidents, and a "circle of finance ministers". The latter, chaired by Brazil's finance minister Fernando Haddad, will offer advice to the Cop 30 presidency on climate finance issues, from "policy-making perspectives", Correa do Lago wrote. Climate finance dominated Cop 29 in Baku, Azerbaijan, last year , where countries agreed that developed nations would provide at least $300bn/yr to developing nations by 2035, for climate action and their energy transitions. Countries will this year discuss a promised "roadmap", intended to forge a path to climate finance of $1.3 trillion/yr, but this will likely lie outside formal negotiations. Correa do Lago today pointed to recent data from the World Meteorological Organisation , which confirmed that 2024 was the hottest year on record. It surpassed the previous record set in 2023. But his letter failed to mention the key driver of climate change — greenhouse gas emissions from fossil fuel consumption. Correa do Lago's first letter also neglected the topic , provoking criticism from environmental campaigners. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Bangchak tests runs at Thai SAF plant before 3Q launch


08/05/25
News
08/05/25

Bangchak tests runs at Thai SAF plant before 3Q launch

Singapore, 8 May (Argus) — Thai energy group Bangchak is conducting test runs at its sustainable aviation fuel (SAF) plant in Bangkok before likely starting regular production in the third quarter, sources close to the company said. The plant, which is also the country's first SAF plant, will have an initial production capacity of 1mn litres/d. It will mainly consume ISCC-certified used cooking oil (UCO) as feedstock for SAF production via the hydroprocessed esters and fatty acids (HEFA) pathway. Other feedstocks could also be explored in the future, company sources said. The plant will also produce byproducts such as bio-LPG and bionaphtha. Its SAF production process was developed in collaboration with Belgian biofuels processing technology company Desmet, which provided feedstock pre-treatment technologies, and US technology firm UOP Honeywell, a pioneer in hydroprocessing systems, according to Bangchak. Thailand is currently considering the introduction of a SAF mandate at a 1pc blend rate from 2026, with proposals to increase this to 3pc in 2030 and 8pc by 2037. But firm details on implementation mechanisms have yet to be announced. Thailand's board of investment in January approved corporate tax exemptions for SAF producers and investors in the country for a period ranging over 3-8 years. Bangchak has already secured offtake for some of its initial production volumes. The firm last year entered an agreement with oil major Shell's Singapore-based subsidiary to supply SAF from its plant. Bangchak also previously signed another supply agreement with Japanese refiner Cosmo Oil in December 2023, but volumes are still under discussion, a company source said. The Argus fob Singapore SAF netback price has been on a downtrend since late last year, reaching a record lows of $1,668/t on 5 March, and also marking the lowest since Argus ' assessments started in November 2020. The price was at $1,682/t on 7 May. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Last month was second-hottest April: EU's Copernicus


08/05/25
News
08/05/25

Last month was second-hottest April: EU's Copernicus

London, 8 May (Argus) — Last month was the second-hottest April on record globally, EU earth-monitoring service Copernicus said today. The global average surface air temperature in April was 14.96°C, 0.60°C higher than the 1991-2020 average for the month, Copernicus data show. The average temperature last month was 1.51°C above the estimated pre-industrial average, the organisation said. The Paris climate agreement seeks to limit the rise in global temperature to "well below" 2°C and preferably to 1.5°C, to avoid the worst effects of climate change. April 2025 was just 0.07°C cooler than April 2024, which was the hottest recorded , Copernicus found. It was the 21st month in the past 22 for which the global average surface air temperature exceeded 1.5°C above pre-industrial levels, according to Copernicus data — though data from other agencies may not confirm this as the margins are relatively small. The organisations typically concur on the broader trends. A group of six weather and science agencies said in January that 2024 was the hottest on record . Sea surface temperatures "remained unusually high in many ocean basins and seas", while "large areas in the northeast North Atlantic" experienced record-high sea surface temperatures for the month. Arctic and Antarctic sea ice extent was below average, Copernicus found. Around 40 leaders and ministers are meeting this week in Copenhagen, Denmark for a climate ministerial. The discussions will set the direction for climate negotiations taking place this year, including UN-convened technical halfway point talks in June and the UN Cop 30 climate summit in November. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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