Companies, finance must act on deforestation: Report
Companies and financial institutions with the most exposure to and influence on tropical deforestation must take "long overdue" action to set commitments to achieve deforestation-free supply chains and financing "no later than 2025", a report from non-profit Global Canopy recommended today.
Of the 350 companies and 150 financial institutions linked to tropical deforestation, 201 or 40pc have not set a single policy on deforestation, Global Canopy's Forest 500 report found today. The companies tracked are those most exposed to forest-risk commodities — beef, leather, soy, timber, palm oil and pulp and paper — which drive more than two thirds of tropical deforestation.
Companies have progressed marginally more than the financial sector, Global Canopy found. Of the 350 companies assessed, 100 or 29pc have a deforestation commitment in place for all commodities for which they were tracked, while an additional 141 or 40pc of companies have made public a deforestation commitment for at least one, though not all, of the highest forest-risk commodities to which they are exposed.
The 150 financial institutions assessed by Global Canopy provided $6.1 trillion in finance to the 350 forest-risk companies last year, the report found. This includes $3.6 trillion from 92 financial institutions with no policy on deforestation at all. "The finance sector as a whole is still woefully behind", Global Canopy said.
This is despite the Glasgow Financial Alliance on Net Zero (GFANZ) — which has more than 550 members representing assets of more than $140 trillion — setting out action on deforestation as a key tenet of its transition guidance.
Separately, more than 30 financial institutions representing around $8.7 trillion in assets pledged at the UN Cop 26 climate summit in 2021 to report deforestation risk across their investments. The group also committed to, by 2025, only finance clients that have met risk-reduction criteria.
Deforestation pledges gathered pace at Cop 27 last year, although the most tangible action is likely to be driven by Brazil's president Luiz Inacio Lula da Silva, who took office in January and significantly reduced deforestation rates in Brazil during his previous two terms in office in 2003-10.
Eva Zabey, executive director of environmental organisation Business for Nature, noted today that action on deforestation must now be driven by regulation, rather than a voluntary approach.
Global Canopy pointed to recent ambitious EU legislation, on which a preliminary deal was reached in December 2022, which will require companies to verify that certain forest-risk products have not led to deforestation or forest degradation anywhere after the end of 2020. Other jurisdictions should follow the EU's example, the non-profit said.
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Brazil ups outlook for 2023-24 crop to 299mn t
Brazil ups outlook for 2023-24 crop to 299mn t
Sao Paulo, 11 July (Argus) — Brazil raised the outlook for its 2023-24 grain and oilseed crops for the third consecutive month in July, driven by favorable weather supporting the second corn crop. National supply company Conab now expects 2023-24 output at 299.3mn metric tonnes (t), up by 1.7mn t from a month ago. But the projection for the current cycle is 6.4pc — or 20.5mn t — below the record 319.8mn t in 2022-23, following the negative effects of the El Nino weather phenomenon over main producing states earlier in the season. The 2023-24 crop is set to yield 3,752 kg/hectare (ha), 7.9pc below the 4,072 kg/ha in the last cycle. That also compares with the 3,739 kg/ha forecast in June. Estimated sowed area expanded by 170,200ha to 79.8mn ha this month, which is a 1mn ha tumble from the prior season's acreage. Corn crop leads monthly gain Conab expects Brazil to produce over 115.9mn t of corn in 2023-24, including the country's first, second and third crops. Estimated volumes rose by 1.8mn t from the previous estimate of 114.1mn t, as the average yield outlook increased to 5,553 kg/ha from 5,478 kg/ha and the projection for planted area was up by 25,000ha to 20.9mn ha. The 2022-23 corn crop produced a record 131.9mn t, with 22.3mn ha sowed and average yields of 5,923 kg/ha. The 2023-24 second corn crop — also known as the winter crop — accounted for most of the upwards revision this month. The production forecast rose to 90mn t from 88.1mn t, but remained below the 2022-23 crop's 102.4mn t record. Expected yields rose to 5,556 kg/ha from 5,478 kg/ha in June. That is also 6.7pc below the prior cycle's yields. As for planted area, the forecast increased by 47,000ha and was maintained at almost 16.2mn ha. The 2022-23 second corn crop was sowed in 17.2mn ha. The summer corn cycle — also known as the first crop — is set to reach almost 23.4mn t, down by nearly 180,000t from a month prior and 3.9mn t below the last season. The estimate for acreage decreased by 23,900ha, but remains at around 4mn ha, approximately 438,000ha below the 2022-23 planted area. Projected yields dropped to 5,852 kg/ha from 5,862 kg/ha, also down from last season's 6,160 kg/ha. The outlook for the third corn crop — sowed exclusively in northern and northeastern states — continues at 2.4mn t, surpassing the prior cycle by 254,800t. Planted area is now set to reach 657,800ha, up by 2,800ha from the prior month's estimate and 632,500ha in 2022-23. The outlook for yields was down to 3,663 kg/ha from 3,670 kg/ha but is 7.5pc up on the year. Soybean output decreases slightly Brazil's 2023-24 soybean crop is set to total approximately 147.3mn t, following a 16,900t reduction from a month ago. That is a 4.7pc drop from the 2022-23 season's record of 154.6mn t, but the cycle remains on track to be the second largest crop in the country's history. The monthly output decrease reflects damage caused by floods in the Rio Grande do Sul state, which reduced its outlook by 540,000t to 19.7mn t. Losses were then mostly offset by an upwards revision in Para state, where higher yields and an increase in expected area rose the output forecast to almost 4.1mn t. National average yields are now estimated at 3,202 kg/ha, down from 3,205 kg/ha in June and 3,507 kg/ha in 2022-23. Conab projects that the 2023-24 soybean crop was sowed at a record of 46mn ha, compared with 44.1mn ha in the prior cycle. Wheat, cotton down Brazil's 2024 wheat production is now set to total almost 9mn t, down by 109,500t on the month and 859,000t above last year's output. Yields are down to 2,917 kg/ha from 2,945 kg/ha, while the expected planted area continues at approximately 3.1mn ha. That compares with 2,331 kg/ha and almost 3.5mn ha in 2023. The monthly downwards revision was driven by a lower outlook in Goias state, which struggled with excessive rainfall in the beginning of the cycle, fungal diseases and most recently water stress during the grain filling stage of crops. The forecast for 2023-24 cotton lint fell by 20,900t and is now at 3.6mn t, which is 462,900t — or 14.6pc — above the prior season's output. The yearly increase is driven by a higher expected acreage of 1.9mn ha, almost 17pc above the 2022-23 season and roughly stable from a month ago. Yields were down to 1,870kg/ha from 1,881kg/ha in June, which is 2pc below the prior season. Corn, soybean exports stable Conab continues to project 2023-24 corn exports to total 33.5mn t, despite an increase in expected production. Volumes remain below the 54.6mn t shipped in the prior cycle. But the outlook of domestic consumption rose to 84.3mn t from almost 84.2mn t a month ago — about 5.7pc above the prior season — led by a record demand from the corn ethanol and animal feed sectors. Soybean exports also continue set to reach 92.4mn t, down from almost 101.9mn t of soybeans exported in the 2022-23 season. By Nathalia Giannetti Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Commodity Ag to start WA grain exports
Australia’s Commodity Ag to start WA grain exports
Sydney, 11 July (Argus) — Australian agribusiness Commodity Ag will export its first cargo from its Albany port terminal facility this week, boosting export competition in Western Australia against established grain handlers CBH and Bunge. The company intends to export 600,000 t/yr from its Albany port facility, but said its capacity would be constrained by other users of the general-purpose berth. The loading capacity of the mobile shiploader indicated in its ACCC application would be a quarter of CBH's total loading capacity at Albany, according to Southern Ports. Western Australia's bulk grain exports are dominated by CBH — which has port terminals at Geraldton, Kwinana, Esperance and Albany — and Bunge, which has a port terminal at Bunbury. But barriers to entry for smaller port terminal service providers such as Commodity Ag have been reduced by the availability of mobile shiploaders , which allow trucks to unload grain directly in the port and onto a vessel. Commodity Ag's Albany facility will use a 400 t/hr mobile shiploader to load cargoes onto Handymax-sized vessels that are approximately 50,000 deadweight tonnes, according to its March 2023 application to the Australian Competition & Consumer Commission (ACCC) to be an exempt service provider of port terminal services. Commodity Ag has no other cargoes for loading on its shipping stem accessed on 11 July. It became an exempt service provider of port terminal services in May 2023, which means the company is not required to comply with parts 3 to 6 of the Port Terminal Access (Bulk Wheat) Code of Conduct. Part 3 of the code requires a port terminal service provider to not discriminate in favour their own trading business or an exporter that is an associated entity, and not hinder access for another exporter when providing bulk grain port terminal services. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Texas ports could fully reopen Thursday: Pilots
Texas ports could fully reopen Thursday: Pilots
New York, 10 July (Argus) — Major Texas ports are likely to rescind draft restrictions and begin operating at full capacity Thursday with port facility damage limited and shipping channels free of significant blockages following Hurricane Beryl, according to vessel piloting services. The US Coast Guard authorized most Texas ports to open for daylight hours only starting today , with 30 ft draft restrictions in the port of Houston and 35 ft in the ports of Galveston and Texas City. But with "no major obstructions" being found in the channels and final surveys by the US Army Corps of Engineers and the US Coast Guard expected soon, those restrictions may be lifted by the end of day Wednesday, according to Galtex Pilots director of operations Erik Stramblad. The restrictions slowed vessels traffic in and out of the port of Houston to about 66pc of the "typical count of 55-60 vessels daily", according to Houston Pilots Association chief operating officer JJ Plunkett. "We're working with the Coast Guard and the Army Corps of Engineers to get their final surveys," Plunkett said. "Tomorrow [the port of Houston] will probably have a deeper draft." The resulting buildup of vessels around Texas ports is likely to clear quickly once normal operations resume, according to Stramblad. "The number of vessels waiting is about the same [as usual]," Stramblad said. "It's only been a couple of days [of downtime]. It tends to clear itself up quickly once we have the full draft back." Some private terminals within the ports of Texas City and Galveston need to provide their own status assessments before operations can fully resume, Stramblad said. "Nobody wants to hit something that shouldn't be there," Stramblad said. Ship-to-ship transfers of crude, refined products and other commodities resumed off the Texas coast on Tuesday. At least two charterers today sought Suezmax tankers for crude lighterings in the US Gulf coast from 12 July. By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Boeing used less SAF in 2023 than planned
Boeing used less SAF in 2023 than planned
New York, 10 July (Argus) — US aerospace manufacturer Boeing used less sustainable aviation fuel (SAF) in 2023 than it had initially planned, citing "supply chain issues." Boeing doubled its internal SAF consumption in 2023 compared with year-prior levels according to its latest sustainability report, with the fuel making up about 3pc of its total aviation fuel use over the year. But the company's use of around 478,000 USG neat SAF in its own operations was still less than its previously announced purchase commitments. Boeing early last year committed to funding 5.6mn USG of blended SAF from Finnish biofuels producer Neste over the course of 2023, with 2.6mn USG to be used directly by Boeing and another 3mn USG to support SAF use elsewhere as part of a book-and-claim accounting process. Since the Neste blend contains about 70pc conventional jet fuel, the Boeing commitment in essence was to purchase and use within its own operations about 780,000 USG neat SAF. But Boeing's direct SAF consumption last year, which reflects fuel used internally and not fuel it supported for use elsewhere, was around 61pc of its earlier purchase agreement. The company, confirming the discrepancy, said not all the planned 2.6mn USG were received because of "supply chain issues" but declined to elaborate further. Under the initial deal, Epic Fuels and its parent company Signature Aviation were supposed to supply 2.3mn USG of the Neste blend to Boeing, while Avfuel was supposed to supply 300,000 USG. Avfuel manager of alternative fuels Keith Sawyer told Argus that it ended up supplying more than the planned 300,000 USG at Boeing's request last year and that the fuel supplier is on track to meet its obligations to supply 1.5mn USG of blended SAF to Boeing this year. Epic Fuels and Neste declined comment. Boeing has set plans to use 4mn USG of the same Neste SAF blend in its own operations this year, with some coming from Epic and some from Avfuel, and to purchase SAF certificates associated with 5.4mn USG of blended SAF used elsewhere. Boeing added that SAF, which today mostly comes from hydrotreated vegetable oils and waste fats, is "the biggest lever for the industry to decarbonize by 2050." The company plans to use more of the fuel internally and to ensure that all the commercial airplanes it produces are compatible with 100pc SAF by 2030. In short supply Aviation companies see SAF as crucial for meeting climate goals, though usage to date has been limited by SAF's steep premium to conventional jet fuel. Though prices for SAF delivered to the US west coast have recently fallen on expectations of higher supply, it is still more than twice as expensive as conventional jet according to Argus assessments. The fuel's growth thus hinges on government policy, but low environmental credit prices in the US and uncertainty about a clean fuels tax credit kicking off next year have created a difficult investment environment for biofuels producers. Few potential suppliers and thin market liquidity then make it hard for prospective customers to rapidly scale up their SAF consumption. American Airlines for instance wants to replace 10pc of its jet fuel with SAF by 2030, but the US airline reported in its own sustainability report last week that it used 2.7mn USG SAF in 2023, an increase from the prior year but still less than 0.1pc of its total fuel use. Chief executive Robert Isom said that "we've signed commitments with multiple SAF producers, at a premium, to try to secure supply" but that "the volume of SAF available today and likely to be ready over the next several years is a tiny fraction of what's needed." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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