UK govt consults on shift to zero emission vehicles

Spanish Market: Battery materials, Electricity, Emissions, Oil products
27/12/24

The UK government this week opened a consultation on moving to zero emission vehicles (ZEVs), seeking views from the industry on how to deliver a 2030 end date for sales of new gasoline and diesel-fuelled cars.

The consultation "is focused on how, not if, we reach the 2030 target", and is largely technical in scope, the government said. "All new cars and vans will need to be 100pc zero emission by 2035. And no new petrol or diesel cars will be sold after 2030," it added.

The consultation seeks views "on the treatment of new cars and vans from 2030 that are not required to be zero emission under the current ZEV mandate targets", the government said. It has invited industry responses on a technological definition, which would set out which cars are permitted by how the vehicle is powered. The consultation also seeks views on measures to support demand for ZEVs.

The country's ZEV mandate came into force in January. Manufacturers will be required to produce a certain percentage of zero emission new cars and vans — 22pc in 2024 and rising by 5-6 percentage points over each of the following three years to 38pc in 2027. The target will then rise more rapidly to 2030, to hit 80pc for new cars and 70pc for new vans in England, Wales and Scotland.

The government, which took power in July, committed in its manifesto to restore the 2030 phase-out date for sales of new gasoline and diesel-fuelled cars. The UK government in November 2020, under former prime minister Boris Johnson, announced that sales of new gasoline and diesel-fuelled cars would end by 2030. But this was then pushed back to 2035 by then-prime minister Rishi Sunak in September 2023.

The auto sector expressed concern at the pushback. But the current government reiterated its commitment to policy clarity. "Vehicle manufacturers representing 67pc of the UK's new car market have already committed to being fully zero emission by 2030", the government said.

UK automotive trade association SMMT welcomed the consultation. "It is imperative we get an urgent resolution, with a clear intent to adapt the regulation to support delivery, backed by bold incentives to stimulate demand", it said.

The UK has a legally binding target of net zero greenhouse gas (GHG) emissions by 2050. The country halved its emissions between 1990 and 2022, but much of this reduction was from closing down coal-fired power. Domestic transport has been the UK's largest emitting sector for several years, and accounted for 28pc of GHGs in 2022.

The consultation closes on 18 February.

By Georgia Gratton

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08/01/25

German gas demand edges up in 2024

London, 8 January (Argus) — German gas demand remained largely unchanged on the year in 2024, as a recovery in industrial and power-sector burn was almost completely offset by lower residential and commercial consumption amid mild weather. Germany used about 2.285 TWh/d of gas in 2024, up by 6.6 GWh/d from 2.278 TWh/d in 2023, according to data from market area manager THE ( see yearly graph ). But total gas use remained below the 2018-21 average of 2.7 TWh/d, with the drop in wholesale prices from 2022-23 not supporting a rebound in aggregate consumption. Residential and commercial demand — largely for heating purposes — fell by 5pc year on year in 2024 to 894 GWh/d. Household gas prices remain high and are about double those in 2016-21, according to data from grid regulator Bnetza, which may have weighed on gas use by households and small businesses. Mild weather — especially in the first quarter of the year — also pushed down gas demand from households and small businesses. Temperatures were higher than in 2023 in all but three months in the first three quarters of the year, according to data released by German energy and water association BDEW in late December. The number of heating degree days (HDDs) in Germany was about 4pc below the previous year in 2024, and about 14pc below the 10-year average, according to data from Berlin-based think-tank Agora Energiewende. That said, colder weather in September-December supported a year-on-year increase in heating demand during these months ( see monthly year-on-year graph ). According to preliminary calculations published by Agora Energiewende on Tuesday, mild weather and high consumer prices continue to drive the majority of low heating demand, rather than energy-saving efforts. Without the effect of mild weather, emissions from the built environment — largely caused by heating — would have been higher in 2024 than a year earlier, according to Agora. A return of temperature-adjusted heating patterns to pre-crisis levels as well as slow structural changes, such as plummeting heat pump sales , led Agora to urge for more measures in heat transition policy to drive down gas demand from the built environment. Industrial gas demand up by 7pc despite economic woes German gas demand for use in industrial processes rose on the year, according to Argus estimates, supported by a slight recovery in energy-intensive industry. German industry used about 737 GWh/d for industrial processes in 2024, up from 688 GWh/d in 2023 but well below the 2018-21 average of 877 GWh/d, according to Argus analysis. While German GDP stagnated in 2024 and industrial production continued its downward trend, output from energy-intensive industries such as the chemicals sector recovered slightly, especially in the first half of the year. In addition, gas prices falling below LPG in January and remaining cheaper than LPG for most of the year until the fourth quarter may have encouraged some industrial firms to return to gas where they had previously switched to LPG to reduce energy costs. That said, gas prices rising back above propane and butane parity ( see LPG fuel-switching graph ) and lower output from the chemicals industry in recent months may have slowed the German industrial gas demand recovery . And several plant closures in recent years may similarly constrain any future rebound . Power-sector gas burn up Gas-fired generation increased in 2024 from a year earlier on more favourable generation economics than lignite and hard coal, despite a record renewables share reducing the overall call on thermal generation. Gas-fired generation reached 5.96GW last year, up from 5.88GW in 2023, leading to about 16 GWh/d in additional gas demand for power generation, according to Argus estimates. Gas-fired generation increased year on year despite renewables making up a record 62pc of German power generation. Fossil fuel generation was used to meet 17.1GW of power demand in 2024, down from 19.3GW in 2023. While overall power demand remained roughly unchanged from a year earlier, Germany lifted power imports, pushing down domestic generation ( see power mix graph ). But gas increased its share of the thermal mix, partly on lignite and coal plant closures as Germany's coal phase-out progresses. Gas prices at the bottom of the coal-to-gas fuel-switching range for most of the year until the fourth quarter, even outperforming lignite plants in January-July, supported the call on gas for dispatchable generation. Recent gas price rises have put coal and lignite firmly ahead of gas in the power-generation merit order for all forward periods until 2026, suggesting scope for the share of gas in thermal output to be lower this year. By Till Stehr German power generation mix by year GW TTF versus LPG prices, energy equivalence basis $/mn Btu Monthly year-on-year change in gas demand by sector GWh/d German gas demand by year TWh/d Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Singapore, Malaysia to collaborate on CCS, RECs

08/01/25

Singapore, Malaysia to collaborate on CCS, RECs

Singapore, 8 January (Argus) — Singapore and Malaysia have signed agreements to collaborate on carbon capture and storage (CCS) as well as renewable energy certificates (RECs). The countries will engage in bilateral discussions to enable cross-border CCS, and discuss the components of a legally binding government-to-government agreement, said Singapore's Ministry of Trade and Industry (MTI) on 7 January. A joint committee comprising members from both sides will be established to facilitate this. The countries will also share best practices and information, and facilitate relevant research projects. The region has strong geological potential for CO2 storage, said the MTI. "Many countries are interested to pursue CCS to support their own decarbonisation plans and position themselves as CCS hubs for Asia-Pacific," it added. Malaysia has a geological abundance of deep saline aquifer reservoirs , which could be used to develop large-scale, permanent CO2 storage solutions. RECs Singapore and Malaysia will also study the formation of a credible framework that recognises RECs associated with cross-border electricity trade. The development of the framework will catalyse demand for cross-border electricity trading projects, which will lead to higher investment that can support the long-term viability of regional renewable energy projects, said the MTI. Singapore's licensed electricity importer Sembcorp Power signed a supply agreement with Malaysia's state-owned utility Tenaga Nasional Berhad (TNB) last month to import 50MW of renewable energy issued with RECs , with the renewable energy to be imported via existing infrastructure. Flows into Singapore began on 13 December. The agreement is part of Malaysia's inaugural "green electricity" sales through its Energy Exchange Malaysia (Enegem) platform, which allows for cross-border green electricity sales to neighbouring countries. Almost 28,000 MWh of electricity has been traded under the Energem platform as of 7 January, according to MTI. State-owned electricity firm Singapore Power and TNB are also undertaking a joint feasibility study to expand interconnector capacity and infrastructure between Singapore and Malaysia, said the MTI. Cross-border power initiatives in the region have been growing, such as the recent increase in capacity of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) to up to 200MW under its second phase . Inaugural flows from Malaysia to Singapore began in September 2024, and almost 8,000 MWh of electricity has been traded under this phase as of 7 January, according to MTI. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump wants policy of 'no windmills' being built

07/01/25

Trump wants policy of 'no windmills' being built

Washington, 7 January (Argus) — President-elect Donald Trump wants to pursue a policy to stop the construction of wind turbines, a move that could limit the growth of a resource projected to soon overtake coal and nuclear as the largest source of power in the the US. Trump has spent years attacking the development of wind, which accounted for 10pc of electricity production in the US in 2023, often by citing misleading complaints about its cost, harm to wildlife and health threats. In a press conference today, Trump reiterated some of those concerns and said he wants the government to halt new development. "It's the most expensive energy there is. It's many, many times more expensive than clean natural gas," Trump said. "So we're going to try and have a policy where no windmills are being built." The US is on track to add more than 90GW of wind capacity by 2028, a nearly 60pc increase compared to 2024, the US Energy Information Administration (EIA) said in latest Annual Energy Outlook report. If that growth materializes, wind will become the second largest source of electricity in the US at the end of of Trump's term, overtaking coal and nuclear in 2027 and 2028, respectively, according to the EIA forecast. Trump did not offer specifics on the policy, which he did not run on during his campaign. But the vast majority of wind capacity in the US is built on private land such as farms — largely in rural districts represented by Republicans — limiting the federal government's role. Trump could still threaten wind development by blocking projects on federal land, such as offshore wind projects, and working to repeal federal tax credits that subsidize wind. Democratic lawmakers said blocking wind development will raise costs for consumers and reduce energy production. "Trump is against wind energy because he doesn't understand our country's energy needs and dislikes the sight of turbines near his private country clubs," said US Senate Finance Committee ranking member Ron Wyden (D-Oregon), who helped expand federal tax credits for wind through the 2022 Inflation Reduction Act. Wind energy industry officials also raised concerns with the policy, which they said conflicted with an all-of-the-above energy strategy. "American presidents shouldn't be taking American resources away from the American people," American Clean Power chief executive Jason Grumet said. 'Gulf of America' Trump today separately reiterated his vow to "immediately" reverse Biden's withdrawal of more than 625mn acres of waters for offshore drilling, and also said he would rename the Gulf of Mexico as the "Gulf of America", which he said was a "beautiful name". In addition to expanding oil and gas production offshore, Trump said he will seek to drill in "a lot of other locations" as a way to lower prices. "The energy costs are going to come way down," Trump said. "They'll be brought down to a very low level, and that's going to bring everything else down." US consumers paid an average of $3.02/USG for regular grade gasoline in December, the lowest monthly price in more than three years. Henry Hub spot natural gas prices dropped to $2.19/mmBtu in 2024, the lowest price in four years. During his campaign, Trump said he would cut the price of energy in half within 12 months of taking office. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK edges Germany to top Europe BEV market in 2024

07/01/25

UK edges Germany to top Europe BEV market in 2024

London, 7 January (Argus) — Sales of battery electric vehicles (BEVs) in the UK last year climbed by 21pc to 381,000 units, according to the Society of Motor Manufacturers and Traders (SMMT), as the country overtook Germany to become the largest BEV market in Europe. Sales in the UK climbed furthest towards the end of the year, driven by strong corporate subsidies ( see graph ) . S ales in Germany slumped by 27pc to 380,609 units, as consumers continued to feel the loss of a €4,500 purchasing subsidy in December 2023. Sales in France last year edged down by 2pc , and the halving of EV buyers' subsidies announced in November because of budget constraints is expected to weigh on sales further. France is Europe's third-largest market ( see graph ). UK market stays open to China-made EVs One reason for the UK's surge in BEV sales, after corporate incentives, is trade policy. The UK is one of the few established BEV markets without surplus tariffs on China-made BEVs, beyond unilateral 2.5pc duties agreed by member states of the World Trade Organisation (see graph) . Japan, another unrestricted market, recorded just 4,531 units in November compared with 38,531 sales in the UK. Sales of China-branded BEVs in western Europe have jumped to over 3pc of overall car sales in recent years, a sharp rise but still insignificant as a market share (see graph) . But Chinese carmakers accounted for over a half of BEV sales in Europe — 51pc in January-September last year, up from 46pc a year earlier — according to market research firm JATO Dynamics. UK corporate sales continue to prop up BEV sales UK private sales to individuals accounted for just 1 in 10 BEV sales last month — of which there were 44,312 — according to SMMT chief executive Mike Hawes. The remainder — around 89pc — were corporate car sales, much higher than the corporate sector's share of 68.5pc in the overall car sales market. This has risen sharply in recent years, from 57pc and 49pc in 2023 and 2022, respectively . "At first glance, the apparent drop in demand from private buyers for electric cars may seem concerning. However, it reflects a fundamental shift in how we finance vehicles," Tom Barnard, analyst at Electrifying.com, said. "It's important to note that the sales figures from 2024 exclude private buyers who have benefited from the excellent deals on EVs available through salary sacrifice or personal lease schemes, as these are recorded as fleet registrations." "Too many PCPs [personal contract purchases], contract hire, finance and motability purchases are recorded as fleet sales when they're being driven by private buyers," Quentin Wilson, founder of EV campaign group FairCharge, said. "We need to change the way these EV registrations are recorded, and fast." By Chris Welch UK BEV sales 2022-24 Europe's three largest BEV markets by sales Tariffs on Chinese-made EVs of selected EV markets West European new passenger car market share pc Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Newsom eyes budget response to Trump

06/01/25

Newsom eyes budget response to Trump

Houston, 6 January (Argus) — California governor Gavin Newsom (D) is eyeing a year without a deficit but is waiting for first moves from president-elect Donald Trump's administration before fine tuning spending proposals for climate change policies and other programs. Newsom on Monday previewed his proposed $322.2bn 2025-26 budget, which he said would avoid the deficit pitfalls of last year's version following a projected $16.5bn increase in state revenues. While the governor will issue his formal proposal on Friday, Newsom said his current budget plan, which includes $228.9bn in general fund spending, will likely change between now and the May revision, as the state weighs its response to actions by the Trump administration. "That is subject to iteration and change over the course of the next few months based on what Trump actually does versus what he says he is going to do," Newsom said. Preparations are underway for anticipated legal battles with the administration, including over climate change policies. Newsom called lawmakers into a special session last month to consider appropriating $25mn to further flesh out legal resources for the attorney general's office. Newsom was optimistic that the legislature, which reconvened on Monday, will get the funding through before the inauguration on 20 January. Going forward, Newsom said this year's budget should reflect fiscal discipline in a time of deep uncertainty following the belt-tightening last year as the state navigated a deficit of more than $40bn. The governor did not elaborate on any climate policy action in his budget preview, including his November proposal to revive a subsidy program for zero-emission vehicles using revenue from the cap-and-trade program, should Trump eliminate a $7,500 federal tax credit for electric vehicles. But while California's budget future looks more stable compared to 2024-25 budget talks, the state's non-partisan budget office cautioned in November that government spending continues to outpace revenues. The office predicts that California will face "double digit operating deficits in the years to come." By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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