EU commission pushes for 12-month deforestation delay

Spanish Market: Agriculture, Biofuels, Biomass
02/10/24

The European Commission has proposed an extra 12 months' "phasing-in time" to implement the bloc's EU deforestation regulation (EUDR). The commission also published the outlines of the EUDR methodology to classify countries as low, standard or high-risk. It said a large majority of countries worldwide will be classified as "low risk".

The commission said that three months ahead of the intended implementation at the end of this year, "several global partners" have repeatedly expressed concerns about preparedness and that European stakeholder preparation is "also uneven". It added that the delay in "no way puts into question the objectives or the substance of the law".

German agriculture minister Cem Ozdemir last month called for the commission to "urgently" postpone the EUDR's implementation by six months. The commission can "create all the necessary conditions on its own" for a delay, without renegotiating the EUDR, he said. Parliament's largest centre-right EPP group has also pushed to delay the regulation.

Officials published "additional" guidance documents and a "stronger" international co-operation framework for global stakeholders, EU states and third countries. The change requires approval from EU states and European Parliament to make the EUDR applicable from 30 December 2025 for large companies. The date would be pushed back to 30 June 2026 for small firms.

A group of major firms such as Ferrero, Mars Wrigley, Mondelez International and Nestle called for no reopening of the EUDR's "substance". The group, joined by several campaign organisations including Fairtrade International, said renegotiating aspects of the EUDR would only increase uncertainty and jeopardise the investments made for application.

By Dafydd ab Iago

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02/10/24

US dockworkers, shippers strike positions entrenched

New York, 2 October (Argus) — The US dockworker strike gripping east coast and Gulf coast container terminals may not be short-lived given the wide gap between union demands and the offer from an alliance of containership owners, terminal operators and port associations. The United States Maritime Alliance (USMX) said its latest proposal for a 50pc wage increase, made on 30 September just before the strike started, "exceeds every other recent union settlement while addressing inflation". But the International Longshoremen's Association (ILA) rebuked USMX's characterization of the offer late Tuesday, saying it fails to address the many years it takes for the port workers it represents to realize the higher wages, and factors like workers being on unpaid on-call status. The last-minute timing of the 50pc wage increase offer itself undermines the USMX's position as good faith negotiators, ILA said. "[The] USMX's claim that they are ready to bargain rings hollow when they waited until the eve of the potential strike to present this offer," the ILA said. "The last offer from [the] USMX was back in February 2023." Dockworkers started to picket container terminals in New England, New York, New Jersey, Houston, Texas, New Orleans, Louisiana, and other locations on 1 October . Containership loading and unloading has come to a halt at those terminals, while no trucks where queued at unmanned loading checkpoints. The union has pointed to a perceived unfairness in record profits reported by shipping companies since the Covid-19 pandemic not being shared with ILA members who were "keeping ports open and the economy moving" during that time. The union is also sticking to demands for no new automation technology at US ports that would replace workers, describing this position as "non-negotiable", and the right to 100pc of the "container royalties" funds, a type of welfare paid out by employers to protect US longshoremen from the loss of work brought on by the containerization of cargo. No fed intervention expected US president Joe Biden continued to indicate the federal government would not intervene in the strike, saying collective bargaining between the ILA and the USMX is the best way for workers to achieve their goals. In a statement this week Biden also pointed out that the USMX "represents a group of foreign-owned [ocean] carriers" and insisted that they should "present a fair offer" to the ILA. "It is time for [the] USMX to negotiate a fair contract with the longshoremen that reflects the substantial contribution they've been making to our economic comeback," Biden said. Vice-president Kamala Harris, who is running to replace Biden, doubled-down on that position today. "This strike is about fairness," Harris said in a statement. "Foreign-owned shipping companies have made record profits and executive compensation has grown. The Longshoremen, who play a vital role transporting essential goods across America, deserve a fair share of these record profits." Few commodities curtailed for now Ports and the companies that rely on them have been anticipating the strike for many weeks . Movements of dry bulk cargo, such as coal and grains, are expected to be less affected by the work stoppage, though there could be side effects from the congestion of other products being rerouted to ports not affected by the strike. Movement of crude, refined products and many petrochemicals are not expected to be interrupted, but some polymers that are moved by container, including polyvinyl chloride (PVC), polyethylene (PE), and polypropylene (PP), could be disrupted. A segment of US steel imports could also be disrupted by the strike, as about 9pc of those imports come in via containers , according to data from Global Trade Tracker. A prolonged strike could begin to curtail some downstream manufacturing of equipment that requires parts that move by containers. By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

California eyes more oilseed limits as LCFS vote nears

02/10/24

California eyes more oilseed limits as LCFS vote nears

Houston, 2 October (Argus) — California regulators proposed late Tuesday expanding limits on the Low Carbon Fuel Standard (LCFS) credits certain oilseeds may generate while keeping the program's tougher targets and adoption schedule unchanged. The latest proposed California Air Resources Board (CARB) revisions add sunflower oil — a feedstock with no current approved users or previous indicated use in the program — to restrictions first proposed in August on canola and soybean oil feedstocks for biomass-based diesel. The new language maintained a proposal to make the program's annual targets 9pc tougher in 2025 and to achieve by 2030 a 30pc reduction from 2010 transportation fuel carbon intensity levels. CARB staff's latest proposals, published a little before midnight ET on 1 October, offer comparatively minor adjustments to the shock August revisions that spurred a nearly $20 after-hours rally in LCFS prompt prices. Prompt credits early in Wednesday's session traded higher by $3 than they closed the previous trading day. LCFS programs require yearly reductions in transportation fuel carbon intensity. Higher-carbon fuels that exceed these annual limits incur deficits that suppliers must offset with credits generated from the distribution to the market of approved, lower-carbon alternatives. California's program has helped spur a rush of new US renewable diesel production capacity, swamping west coast fuel markets and inundating the state's LCFS program with compliance credits. CARB reported more than 26mn metric tonnes of credits on hand by April this year — more than double the number of new program deficits generated in all of 2023. Staff have sought through this year's rulemaking to restore incentives to more deeply decarbonize state transportation than thought possible during revisions last made in 2019. California formally began this rulemaking process in early January after publishing draft proposals in late December. Regulators initially proposed adjusting 2025 targets lower by 5pc for 2025 — a one-time decrease called a stepdown — to work toward a 30pc reduction target for 2030. CARB set its sights on 21 March for adoption. But staff pulled that proposal in February as hundreds of comments in response poured in. Updated language released on 12 August proposed a steeper stepdown for 2025 of 9pc while keeping the 30pc target for 2030. The proposal also added a limit on credit generation from certain crop-based feedstocks, to 20pc of the associated volume delivered to California in certain cases. Respondents generally supported the tougher targets, though fuel suppliers warned of higher prices and some credit generators argued that the state should be even more ambitious. No one praised the proposed limits on credit generation. Environmental advocates said the proposal fell short of the protections they sought against crop conversion and other risks; agribusiness warned that the concept distorted the LCFS and could spark lawsuits. By Elliott Blackburn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Clean fuel credit not on Treasury priority list

01/10/24

Clean fuel credit not on Treasury priority list

New York, 1 October (Argus) — The US Department of Treasury says it will prioritize issuing final guidance around qualifying for a handful of Inflation Reduction Act clean energy tax credits before the end of President Joe Biden's administration, though guidance around a new credit for low-carbon fuels will likely take longer. The agency's new timeline suggests that granular rules around how to qualify for the 2022 climate law's clean fuels incentive will ultimately be decided by the winner of this year's presidential election. Kicking off in January and lasting through 2027, the 45Z tax credit will replace a suite of expiring fuel-specific credits and offer up to $1/USG for low-carbon road fuels and up to $1.75/USG for low-carbon aviation fuels. Treasury is still "actively" working on guidance around the 45Z incentive, Treasury acting assistant secretary for tax policy Aviva Aron-Dine told reporters today. But unlike for other credits, officials have not provided any timeline for proposing or finalizing that guidance or any signal of whether they could issue any safe harbor assurances before final guidance is available. The Biden administration has not yet clarified how it will calculate greenhouse gas emissions or account for the benefits of "climate-smart" agricultural practices for fuels derived from crop feedstocks, potentially deterring investments until final guidance is available. The 45Z credit requires fuel to meet an initial carbon intensity threshold and then increases the subsidy as a fuel's greenhouse gas emissions fall. Policy clarity is essential, biofuel groups say, since fuel and feedstock offtake contracts are hashed out months in advance and the credit is relatively short-lived compared to other Inflation Reduction Act incentives. Some farm state lawmakers have also pushed for final guidance to bar refiners using foreign feedstocks — such as used cooking oil from China — from being able to claim the credit. The Biden administration still expects to finalize guidance for the 45V clean hydrogen tax credit by year-end out of recognition that the industry "needs certainty" to invest, Aron-Dine said. The final guidance will provide "appropriate adjustments and additional flexibilities" to help projects move forward, she said, while adhering to requirements to consider indirect greenhouse gas emissions caused by the production of clean hydrogen. Treasury also expects to issue final guidance by the end of the administration on the 45Y clean electricity production credit and clean electricity investment credit, a technology-neutral tax credit it proposed earlier this year. The final guidance will continue the "explosive growth" of wind and solar and also provide tax credits to emerging technologies that produce no net greenhouse gas emissions, Aron-Dine said. Other tax credits set to be finalized by the end of the administration include the section 48 investment tax credit and the 45X advanced manufacturing production credit that is supporting the buildout of domestic supply chains, Aron-Dine said. By Cole Martin and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's Parana 2024-25 soy works ahead on year

01/10/24

Brazil's Parana 2024-25 soy works ahead on year

Sao Paulo, 1 October (Argus) — Planting for the 2024-25 soybean crop in Brazil's southern Parana state advanced quickly this past week and surpassed last season's progress at the same time in 2023. Activities advanced by 12 percentage points to 22pc of the expected sowed area in the week ended 30 September, as recent rainfalls in the state favored soybean field works, according to the state's department of rural economics Deral. The pace now is 2 percentage points ahead of the 2023-24 cycle a year ago. Crop conditions remained stable between 23-30 September, with 100pc of areas considered in good conditions. Summer corn Sowing for the 2024-25 first corn crop reached 74pc of expected area as of 30 September. That is an increase of 14 percentage points from the prior week. Works remain behind the 2023-24 crop, which was 82pc sowed at the same time last year. Summer corn crop conditions were also unaltered this week. Areas rated in good quality account for 96pc, while the 4pc remaining is evaluated in medium conditions. Wheat The 2024 wheat crop harvest advanced by 14 percentage points to 62pc of Parana's planted area in the week ended 30 September. That is still behind the 2023 season's pace at the same time last year by 7 percentage points. Wheat crop conditions improved further this week for the third consecutive week. Areas considered in good conditions rose by 6 percentage points to 40pc, following the decreases of 2 and 4 percentage points in those evaluated in medium and bad conditions, to 39pc and 21pc, respectively. By Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Ukraine's agri-exports fall on the month

01/10/24

Ukraine's agri-exports fall on the month

Kyiv, 1 October (Argus) — Agricultural exports from Ukraine continued to fall in September, as rising shipments of wheat and sunflower oil (SFO) failed to offset lower exports of corn, barley and rapeseed. At the same time, exports of grains, oilseeds and by-products were still higher than a year ago, customs data show. Ukraine exported about 4.62mn t of grains, oilseeds and by-products in September, down from 4.73mn t in August but up from 3.64mn t in September 2023. Shipments from the deep-sea ports of Pivdennyi-Odesa-Chornomorsk totalled 3.56mn t in the reporting month, or about 77pc of Ukraine's total agricultural exports, down from 3.65mn t in August. Agricultural exports from river Danube ports continued to decline, falling to 432,839t in September, below the 464,932t exported in August and well below the 2.28mn t in September 2023. Grains Ukraine shipped 3.07mn t of grains in September, down from 3.36mn t in August but up from 2.02mn t in September 2023 ( see chart ). Corn exports fell to 525,883t last month, from 645,853t in August and 627,608t a year ago. Italy was the largest buyer of Ukrainian corn in September, followed by the Netherlands, Greece and Libya, according to statistics based on export declarations. Barley exports fell to 228,358t last month, from 469,495t in August, but were above the 120,198t a year earlier. China and Saudi Arabia were the main recipients of Ukrainian barley, together buying about 65pc of the barley declared for export in September. In contrast, wheat exports rose to 2.31mn t in September, from 2.24mn t in August, and were higher than the 1.27mn t exported a year earlier. Spain remained the largest buyer of Ukrainian wheat in September. Indonesia, Thailand, Vietnam and Italy ranked in the top five. Oilseeds Ukraine exported 1.55mn t of oilseeds, vegetable oils and meals in September, up from 1.4mn t in August but down from 1.61mn t a year earlier. Soybean exports rose to 246,112t in September, from 145,593t in August, because of the arrival of the new crop, and were higher than the 210,399t in September last year ( see chart ). Ukraine's rapeseed exports totalled 705,371t last month, down from 794,206t in August but above the 649,820t shipped a year earlier. Belgium was the largest buyer of Ukrainian rapeseed, followed by Germany and the UK. Exports of sunflower seed (SFS) fell to just 563t in September, almost half the level of the previous month and well below 6,488t a year earlier. SFO exports rose to 348,717t, from 199,101t in August but were slightly below the 359,964t in September 2023. India was the main destination for Ukrainian SFO in September, followed by the Netherlands, Bulgaria and Spain. Exports of sunflower meal (SFM) fell slightly to 233,978t in September, from 237,696t in the previous month and 376,586t a year earlier. China was the largest buyer of Ukrainian SFM, taking around one-third of the product declared for export in September. By Alexey Yeromin Ukraine grain exports mn t Ukraine oilseed, vegoil and meal exports t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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