Brazil registers warmest year in 2024

Spanish Market: Emissions
06/01/25

Brazil registered an average temperature of 25.02°C (77°F) in 2024, the hottest year since 1961, thanks largely to the El Niño weather phenomenon, according to national institute of meteorology Inmet.

Last year's average temperature was 0.79°C above the 1991-2020 average of 24.23°C, Inmet said.

The El Niño natural phenomenon — which occurs when the ocean surface in the central eastern Pacific Ocean becomes warmer than average — altered temperatures in Brazil in 2023-2024.The hottest years in the country tend to coincide with the phenomenon, according to Inmet.

Brazil had extreme climate events throughout 2024, with floods in southern Rio Grande do Sul state, which damaged roads and crops, and wildfires in the southeast.

The country's average temperature in 2023 was 24.92°C, 0.69°C above the average between 1991-2020.

By Maria Frazatto

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09/05/25

White House ends use of carbon cost

Washington, 9 May (Argus) — The US is ending its use of a metric for estimating the economic damages from greenhouse gas (GHG) emissions, the latest reversal of climate change policies supported by President Donald Trump's predecessors. The White House Office of Management and Budget (OMB) this week directed federal agencies to stop using the social cost of carbon as part of any regulatory or decision-making practices, except in cases where it is required by law, citing the need "remove any barriers put in place by previous administrations" that restrict the ability of the US to get the most benefit "from our abundant natural resources". "Under this guidance, the circumstances where agencies will need to engage in monetized greenhouse gas emission analysis will be few to none," OMB said in a 5 May memo to federal agencies. In cases where such an analysis is required by law, agencies should limit their work "to the minimum consideration required" and address only the domestic effects, unless required by law. OMB said these steps are needed to ensure sound regulatory decisions and avoid misleading the public because the uncertainties of such analyses "are too great". The budget office issued the guidance in response to an executive order Trump issued on his first day in office, which also disbanded an interagency working group on the social cost of carbon and called for faster permitting for domestic oil and gas production and the termination of various orders issued by former president Joe Biden related to combating climate change. The metric, first established by the administration of former US president Barack Obama, has been subject to a tug of war between Democrats and Republicans. Trump, in his first term, slashed the value of the social cost of carbon, a move Biden later reversed . Biden then directed agencies to fold the metric into their procurement processes and environmental reviews. The US began relying on the cost estimate in 2010, offering a way to estimate the full costs and benefits of climate-related regulations. The Biden administration estimated the global cost of emitting CO2 at $120-$340/metric tonne and included it in rules related to cars, trucks, residential appliances, ozone standards, methane emission rules, refineries and federal oil and gas leases. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Carbon credit method may limit Australia's ACCU supply

09/05/25

Carbon credit method may limit Australia's ACCU supply

Sydney, 9 May (Argus) — A potentially ineffective design of the long-delayed Integrated Farm and Land Management (IFLM) method developed by the Australian federal government might exclude thousands of landowners from the Australian Carbon Credit Unit (ACCU) market, curbing potential supply, industry participants have warned. The IFLM method, the first in Australia to combine multiple activities that store carbon in soil and vegetation in a single method , could be potentially set with a "binary framework" classifying land types as either cleared or uncleared, following a recent update from the Department of Climate Change, Energy, the Environment and Water (DCCEEW). But focusing on a single binary factor misses a broad range of other important influences, such as fire, over grazing, soil disturbance, feral animal impacts and climate events, co-chief executive of carbon project developer Climate Friendly, Skye Glenday, told Argus . It would particularly affect rangeland areas which cover around 70pc of Australia and include a large proportion of the Indigenous Estate, she added. The cleared/uncleared definition overlooks large areas of degraded land in Australia and is "not helpful" in understanding why the land is in that condition, carbon developer Australian Integrated Carbon (Ai Carbon) chief executive Adam Townley told delegates this week at lobby group Carbon Market Institute (CMI)'s Carbon Farming Industry Forum in New South Wales. A narrow definition of cleared and uncleared land effectively locks out large portions of the carbon market, decimating Western Australia, South Australia and the Northern Territory, Townley said. A CMI taskforce led by Glenday and Townley is recommending that the DCCEEW instead use the Vegetation Assets, States and Transitions (VAST) framework, which is already used by the Australian government to classify and report on the condition of native vegetation in its flagship State of Environment reports. This condition-based approach would allow developers to establish projects in large areas of existing native vegetation that are significantly degraded because of Australia's land-use history, but which still have forests and woodlands, according to the taskforce. The projects would then be able to restore health and increase carbon storage within these areas, the taskforce claims. Transition potential The right framework could incentivise between two-thirds and three-quarters of the registered land projects in eligible methods to transition to the future IFLM method, according to Glenday. Eligible methods would start with the key human-induced regeneration (HIR) ACCU method, which expired on 30 September 2023, as well as the Environmental Plantings (EP) and soil carbon methods. There are around 2,000 land-based projects registered, with about 400-500 in HIR, 50-100 in environmental plantings, and around 700 or more in soil. The number of projects that will transition will likely depend on the final transition rules and the package of activities each land manager wants to undertake, Glenday told Argus . Carbon developer Regenco will explore the potential of migrating all its HIR projects into the IFLM method, managing director and chief executive Greg Noonan told Argus on the sidelines of the CMI event. Transitioning to the new method would allow existing projects to have much larger land areas accountable for carbon sequestration, compared with around just 20pc on average under the HIR method, although decisions would depend on the additional ACCU generation potential for each project to compensate for migrating costs, Noonan said. Some developers said they will also consider transitioning their projects, but others expressed frustration and scepticism over the timeframe and final determination of the method, which was first proposed in 2019. There is a clear urgency in discussing new ACCU methods under consideration to address a current shortfall in availability of land-based methods that is restricting industry investment and engagement, CMI chief executive John Connor said. But delegates welcomed the policy certainty provided by the re-election of the Labor government , he added. "We're very hopeful that the IFLM method is legislated this year, and that's what we're working towards with all the stakeholders," Glenday said. But it would take at least up to nearly three years for the first IFLM projects to go from implementation to first ACCU issuances, she added. ACCU generic, generic (No AD) and HIR spot prices ended the week to 9 May at A$35 ($22.50), dropping slightly from a week earlier as the market failed to receive a boost from the Labor party's re-election. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mitsubishi joins Philippine coal plant phaseout project

09/05/25

Mitsubishi joins Philippine coal plant phaseout project

Osaka, 9 May (Argus) — Japanese trading house Mitsubishi has agreed to join a project to phase out a coal-fired power plant in the Philippines, aiming to generate carbon credits through the Transition Credits mechanism along with Japan's Joint Crediting Mechanism (JCM). Mitsubishi and and its Hong Kong-based subsidiary Diamond Generating Asia (DGA) has agreed to join Philippine energy firm Acen, GenZero — a subsidy of Singapore state-owned investment firm Temasek — and Singapore conglomerate Keppel to phase out the 246MW South Luzon coal-fired plant in Batangas, the Philippines, and replace it with a clean power facility. The initial deal for this project was signed by Acen, GenZero and Keppel in August 2024. Acen is now seeking to decommission the coal-fired plant by 2030, instead of the previous target of 2040. It is still unclear what types of clean power sources will then be deployed. But renewables such as solar or onshore wind, alongside storage batteries, could be possible, a Mitsubishi spokesperson told Argus . The partners aim to leverage Transition Credits (TCs) for the early retirement of the plant. TCs are high-integrity carbon credits generated from the emissions reduced through retiring a coal-fired plant early and replacing this with clean energy. The South Luzon project is expected to be one of the first converted coal-fired plants in the world to generate TCs. The project is expected to generate carbon credits equivalent to 19mn t of CO2 emissions reduction over 10 years, the Mitsubishi spokesperson told Argus . Mitsubishi plans to include this project in the JCM mechanism, as the Philippines has been Japan's JCM partner country since January 2017. The company is already marketing the carbon credits in Japan, assuming the credits will be verified under the JCM, while also hoping to sell them in Singapore and the Philippines. Verified carbon reductions or removals under the JCM can be quantified on an international basis. Some of the JCM credits issued from such mitigation efforts will be used to achieve Japan's nationally determined contributions (NDCs), while ensuring double counting is avoided on the basis of corresponding adjustments between countries and consistency with the guidance on co-operative approaches referred to in Article 6.2 of the 2015 Paris climate agreement. JCM credits could be also traded under the Japan's green transformation emission trading system (GX-ETS), which will be officially launched in autumn of 2027 . The GX-ETS adopts the cap-and-trade programme, with the government allocating free allowances for each eligible entity every year. Japan is still highly dependent on coal-fired generation, although Tokyo has pledged to phase out inefficient coal-fed plants by 2030. Coal-fired output accounted for 32pc of the country's total power generation in 2024, according to data from the trade and industry ministry. When asked by Argus where there is the potential for the introduction of the Transition Credits mechanism in Japan, the spokesperson said Mitsubishi has not ruled out the possibility, but added there have been no discussions on this for now. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US seeks flexibility from Europe to help LNG deals

08/05/25

US seeks flexibility from Europe to help LNG deals

Washington, 8 May (Argus) — President Donald Trump's administration is pressing European countries to offer flexibility on standards for methane emissions as a way to ease the pathway for them to sign long-term purchase agreements for US LNG. Trump has pushed for countries to commit to buying more US LNG as a way to avoid steep tariffs he has threatened to impose on countries that have trade imbalances with the US. But a looming requirement for European importers to show "equivalence" to EU methane monitoring requirements for newly signed gas supply contracts could pose an obstacle for US LNG, based on differences in how methane emissions are tracked. The administration's "ask" is for the EU to ensure that its methane-related measurement, reporting and verification (MRV) methodologies do not pose a barrier to US LNG, US acting assistant secretary of state for energy resources Laura Lochman said today. US LNG terminals have struggled to show equivalency to the MRV rules because, unlike many global LNG projects, they source their gas from pipelines connected to multiple fields. "Give time for industry to work through some of those traceability issues as well, because it would take a few years to be able to get to that point and work out the equivalency methodology," Lochman said at an event with European officials organized by the industry group LNG Allies. European officials indicated they are receptive to finding a solution, as they work to end purchases of Russian gas by the end of 2027. But they say they want to continue to see reductions in emissions of methane, which is a potent greenhouse gas. Trump has already started rolling back restrictions on methane emissions. "We understand you've got a different supply chain, as opposed to us, and that it's important to have it worked out so that any difficulties are taken away from American companies with those regulations," Netherlands ambassador to the US Birgitta Tazelaar said at the event. "Of course it's very important for the Netherlands and Europe that methane be reduced." US LNG developers are likewise pushing Europe to consider pushing back a goal to largely phase out natural gas consumption by 2040. That deadline could complicate the traditional financing model for new LNG terminals typically premised on signing 20-year supply deals, said Kimmeridge managing partner Ben Dell, whose company is building the proposed 9.5mn metric tonne/yr Commonwealth LNG project in Louisiana. "The one thing I would ask is for European members in this room to think beyond 2040," Dell said. "Ultimately extending that runway allows a lower-cost project financing and ultimately a lower cost delivery into the European market." A potential trade deal between the US and the EU could create an opportunity to grant equivalency to US LNG exports to avoid barriers from the EU methane regulation, LNG Allies president Fred Hutchison said today. The US in turn could reclassify the EU as having a free trade agreement for gas, which would expedite US LNG export licensing, Hutchison said. The Trump administration sees the potential for European contracts to lead proposed US LNG export terminals to reach final investment decisions (FIDs). The administration has already been "very clear" about its goal to increase LNG exports and cut regulations facing the natural gas sector, the State Department's Lochman said. "When you put together the push from the US side to support, and then the demand signals on the European side, you can get more projects making it to FID," Lochman said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cop 30 head urges upgraded climate co-operation: Update

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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