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CPC to import Taiwan's first SAF for 2025 trial

  • Spanish Market: Biofuels, Emissions
  • 24/06/24

Taiwan will supply its airlines with sustainable aviation fuel (SAF) for the first time in first-half 2025, as part of a pilot project to hasten carbon emissions reductions in aviation and meet its net zero goals.

There are plans for state-owned refiner CPC to import and supply SAF to national airlines at Taoyuan International Airport and Taipei Songshan Airport during January-June 2025. The volumes and airlines have not been confirmed, said a company source.

Taiwan's Civil Aviation Administration (CAA) also encourages Taiwanese airlines to target 5pc SAF use by 2030, given the International Civil Aviation Organisation's (ICAO) aim of achieving a 5pc cut in carbon dioxide emissions in international aviation by 2030 compared with a business as usual scenario.

The CAA said it has been working with the relevant ministries, oil companies, airlines and airports to understand their needs regarding domestic supplies of SAF. It is also in the process of ensuring facility certification and implementing supporting measures in airlines and aircraft.

The SAF used in trials next year must have been certified by an ICAO-authorised agency, including details such as oil pipelines, its import sources, oil storage tanks, vessels and tanker trucks transporting the oil. CPC is now settling certification work for each step of the import process. The SAF will also be certified by the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia), a global scheme to reduce international aviation emissions, which airlines can directly use it to reduce their carbon emissions.

The CAA has strategies to decarbonise Taiwan's aviation sector. These are reducing fuel consumption through measures like optimising flight routes and encouraging airlines to replace old aircraft with new models. It also aims to step up energy conservation and carbon emissions reductions in airport operations and management, encourage airlines to use SAF and promote compliance with Corsia's emissions requirements.

The CAA updated Taiwan's civil and general aviation regulations last year to include laws on carbon emissions reporting in compliance with Corsia. Taiwan's airlines this year reported their carbon emissions for the first time for the year 2023, which the administration is also currently reviewing.


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18/03/25

German climate fund draws interest from Africa

German climate fund draws interest from Africa

Berlin, 18 March (Argus) — The €100bn climate action allocation in Germany's proposed €500bn infrastructure fund is a "very strong signal" which could help Africa with the huge challenges the continent faces in mobilising private capital, delegates heard at the German-African Energy Forum in Berlin this week. Germany's €100bn climate fund "couldn't come at a better time", Johannesburg-based Africa Investor Group chief executive and chairman Hubert Danso said, given South Africa's presidency of the G20 and the presidency's focus on reducing the cost of capital for developing countries through the planned set-up of a "cost of capital commission", which Danso said is addressing the "unjustified" premiums paid by developing countries. Germany's budget allocation could "fold into" the work of the G20 and the run-up to the UN Cop 30 climate summit in Belem, Brazil, later this year, Danso suggested. Michael Kellner, junior minister at the economy and climate ministry of Germany's outgoing government, told delegates that the multi-billion euro package will provide "much more finance for fighting climate change". Kellner, a member of the Green Party which lost the election but was instrumental in pushing through the €100bn allocation, said that the finance will also be used outside Germany. He pointed to Germany's "flagship" green hydrogen import scheme, H2Global, which is likely to see more co-operation with Africa. Kellner flagged the "impressive" production of green iron in Namibia, which could be of interest to German carmakers. "We will be watching [the €100bn climate allocation] closely," Danso told Kellner and representatives from Germany's development ministry. The main challenge, and opportunity, is to make developing countries' nationally determined contributions (NDCs) to the Paris climate agreement more "investable", Danso said. The next round of NDCs, to be submitted this year, must become more "strategic" and "programmatic", Danso urged. In this context, NDCs can drive carbon markets by opening up collaborative approaches, consultant CarbonWise founder and chief executive Toni Heigl told delegates. If a country decides to exceed its NDC, for instance by pushing certain activities that are dependent on external funds, this "helps to trigger the funding", Heigl said. Carbon markets offer "vast" opportunities in Africa, especially the schemes under Article 6 of the Paris deal, Heigl said. With the final Article 6 rules passed at Cop 29 last year , most companies still "underestimate" the potential of these carbon markets, Heigl said, despite Article 6 credits being "8-10 times" more valuable than those under the voluntary carbon market. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

NWE HVO paper trade at record high on mandates, policy


18/03/25
18/03/25

NWE HVO paper trade at record high on mandates, policy

London, 18 March (Argus) — Higher mandates and policy changes are poised to continue to support Northwest Europe HVO paper market liquidity, after a record high of 42,000t of hydrotreated vegetable oil (HVO) Class II Ice futures contracts was traded on 14 March. HVO Class II fob ARA trading activity on the Intercontinental Exchange (Ice) rose as European fuel suppliers increasingly seek renewable diesel made from used cooking oil (UCO) to meet higher mandates and overcome the 7pc restriction for blending conventional methyl ester biodiesel into diesel. The total traded volume for the first two weeks of March (1-14) was 120,000t, close to the previous full-month high in January of 138,000t (see chart). The Ice contract — a cash-settled future that settles based on Argus spot price assessments — launched in 2022 as both a differential to Ice low sulphur gasoil and outright, with the former most commonly traded. Physical HVO interest has been more measured through the beginning of 2025, although spot trade rose year on year. Changes to key biofuels policies in Germany and the Netherlands are expected to support overall demand and anticipation of this has supported HVO paper liquidity. Germany has paused the carryover of surplus tickets that would otherwise go towards meeting its greenhouse gas (GHG) savings quota, meaning obligated parties will have to use more physical biofuels to meet mandates, while the Netherlands has limited the amount of tickets allowed to be carried from year to year, driving a similar dynamic. The start of the year is often a slower physical trading period in northwest Europe as market participants look to finish off compliance submissions for the previous year. Anticipating changes to ticket carryover policies, some physical biofuels were stored in tank to be used at the start of the year, particularly in Germany, suppressing prompt demand. Class II HVO has also been affected by high feedstock prices, which have pressured production margins, and strong imports from east of Suez. Ticket values in Germany and the Netherlands have been below the equivalent cost of blending physical Class II HVO, further limiting demand. In the Dutch market HBE-IXB prices have been pressured by supply of UCO-based sustainable aviation fuel (SAF) blends, which generate 2.4 HBEs per GJ as per the biofuel portion, while German ticket prices have been affected by lower diesel demand and a focus on finishing off 2024 balances. The prompt/front-month price spread for Class II, which gives an indication of the prompt market's strength or weakness, has been volatile for the past month according to Argus assessments (see chart). The spread flipped into contango for the first week of March following a supply surge which weighed on European prices , then returned to backwardation as HVO prices tracked UCO and UCO-based biodiesel prices higher. Prompt UCO prices have in turn been supported by tighter global supply following a protracted export ban from Indonesia, which is still expected to be temporary, contributing to the forward curve backwardation. HVO paper trading on 14 March focused on the upcoming three months. An April/May spread traded at $10/t ($1,055/t, $1,045/t) for 5,000t/month, or 10,000t total, a May/June spread traded at $5/t ($1,045/t, $1,040/t) for 13,000t/month, or 26,000t total, and a second quarter contract traded at $1,065/t for 2,000t/month, or 6,000t total. All of the trades were as premiums to front-month Ice gasoil. By Simone Burgin HVO Class II AOM and Ice monthly totals t HVO Class II fob ARA range prompt and month 1 t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan's JAL, Airbus join Japanese biofuel joint venture


18/03/25
18/03/25

Japan's JAL, Airbus join Japanese biofuel joint venture

Tokyo, 18 March (Argus) — Japan Airlines (JAL) and European aircraft manufacturer Airbus have joined a Japanese joint venture to produce bioethanol from domestic woody material, for use as a feedstock for sustainable aviation fuel (SAF). Joining the project will help JAL meet its target of replacing 10pc of its conventional jet fuel with SAF by 2030, JAL announced on 17 March. It will also help Airbus to achieve its net zero emissions goal by 2050. JAL will build supply chains of biofuel to support the project, and Airbus will help obtain international certification for the woody material-based fuel as SAF. The project was originally proposed in February 2023 by Japanese paper producer Nippon Paper Industries, trading house Sumitomo and domestic biorefinery venture Green Earth Institute. The companies agreed in February 2025 to set up a joint venture, Morisora Bio Refinery , to push forward with a plan to develop domestic SAF supply chains. The companies plan to launch the joint venture in March and start producing bioethanol from local wood chips at Nippon Paper's Iwanuma Mill in the country's northeastern Miyagi prefecture in 2027. Commercial operations are scheduled to begin by around 2030. Morisora will supply bioethanol mainly for SAF production, with expectations that it will be also used in gasoline blending, fuel cells, cosmetics and chemical feedstock. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU prepares CBAM export scheme


17/03/25
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.

Timing for EU's 2040 climate goal slips


17/03/25
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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