Newsom eyes budget response to Trump

Spanish Market: Emissions
06/01/25

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

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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.

Brazil's EV sales hit record high in 2024

06/01/25

Brazil's EV sales hit record high in 2024

Sao Paulo, 6 January (Argus) — Brazil's sales of electric vehicles (EVs) increased by 90pc to a record 177,360 units in 2024, according to the electric vehicle association ABVE. EV sales last year rose from 93,930 units in 2023. That includes battery electric vehicles (BEVs), hybrid electric vehicles (HEV), micro hybrid and mild hybrid electric vehicles (MHEV), plug-in hybrid electric vehicles (PHEV) and flex HEVs. Disregarding micro hybrid units, which are not considered fully electrical, EV sales reached 173,530 last year, an 85pc increase from 2023. Plug-in market rising Sales of plug-in vehicles — including PHEVs and BVEs — totaled almost 125,625 in 2024, representing a 71pc of total EV sales and more than double from the 52,360 units sold in 2023. The expansion of the recharging infrastructure in Brazil drove the plug-in market growth, reducing concerns about the utilization of EVs in long-distance travels. There were more than 12,000 charging stations in the country as of early December, according to charging station management platform Tupi Mobilidade. Hybrid vehicles without external chargers — such as HEVs, flex HEVs and MHEVs — accounted for 29pc of total sales in 2024, with around 51,735 units, a 24pc hike from 2023. Sao Paulo keeps leading the way Southeastern Sao Paulo state remained the leader of EV sales in Brazil, with nearly 56,820 units sold and accounting for 32pc of total sales, followed by federal district Brasilia, with 9pc. Rio de Janeiro, Parana and Santa Catarina states represented 7.2pc, 6.8pc and 6.5pc, respectively, of Brazil's EVs sales. By Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil registers warmest year in 2024

06/01/25

Brazil registers warmest year in 2024

Sao Paulo, 6 January (Argus) — 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 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Carbon management a must for EU clean industry: ZEP

06/01/25

Carbon management a must for EU clean industry: ZEP

Brussels, 6 January (Argus) — The European Commission must move beyond just renewables and electrification to a more holistic approach to decarbonisation, Zero Emissions Platform (ZEP) secretary-general Eadbhard Pernot told Argus ahead of the commission's expected Clean Industrial Deal proposal on 26 February. How important is this Clean Industrial Deal? The industrial sector is directly responsible for some 20-25pc of greenhouse gas (GHG) emissions globally. If you factor in all energy emissions linked to the industrial sector — whether in power or other sectors — then you're looking at 40-45pc of GHG emissions. Under existing tools like the carbon border adjustment mechanism (CBAM), globally traded industrial products such as steel or aluminium will still be imported at lower cost from other regions, such as China, with massive oversupply. In many cases, exporters will shift existing clean production to Europe and send other carbon-intensive products elsewhere. Or they will simply import finished products like cars here without accounting for those emissions. It's a lose-lose. What other specific concrete adjustments can the EU or Clean Industrial Deal bring? Creating a market for decarbonised cement, fertilisers, steel and aluminium, for example, should be on the list of things in the Clean Industrial Deal. In many cases, governments themselves are the ones procuring products — think of bridges and other major infrastructure. That entails reform of EU procurement rules and having long-term offtake agreements. We've got a lot of industrial sites that are going to start producing decarbonised products within the next year or so. If we look at Norway's Longship Project — with multiple emitters, including the Norcem cement plant in Brevik, fertiliser producer Yara, and Haflsund's waste to energy facility — multiple industrial producers are going to be producing decarbonised products and services in the next years, built around common infrastructure projects. We have to ensure a market exists for them. How do you see the wider industrial carbon management strategy unfolding? With the EU elections in June and the start of a new commission, 2024 wasn't an ordinary year. But things are moving in the background. So far, there's been a particular focus on where the best areas are in Europe to develop commercial carbon capture and storage (CCS) sites, like the North Sea, but now it's clear that CCS is essential for the whole of Europe. Central, eastern and southern European countries are taking action. What other legislative solutions do you want to see? Currently, there are no clear EU-wide rules on how the CCS market functions — unlike for gas, power and hydrogen. So we need to secure a regulatory framework for CO2 transport, tackling competitive issues, pricing, ownership of infrastructure and third-party access. We need rules of the game for emitters, storage sites, pipelines and shippers. We hope to see that EU framework within the next 18 months. This is really important for investors and lenders too. At the moment, we only have a patchwork with the 2009 CCS Directive. And the only country with a detailed comprehensive framework is outside the EU — the UK. Do you think the EU really has the political will to push for CCS? Given the role that CCS and carbon capture and use (CCU) will have to play in emissions reductions as well as removals, industrial carbon management is essential to meet the EU's net 90pc GHG CO2 reduction target for 2040. It's non-negotiable, and politicians recognise this now across the political spectrum. Can hydrogen help decarbonise industry? Clean hydrogen certainly has the potential to decarbonise some hard-to-abate industrial processes in the long term. The hydrogen industry is also currently responsible for a significant chunk of European emissions, and that isn't discussed enough. When making grey hydrogen, we need to stop venting CO2 into the atmosphere that could otherwise just be permanently geologically stored. Our focus in the recent EU delegated act on low-carbon hydrogen was to ensure the criteria for carbon stored outside Europe meet the same standard as ours in the EU. 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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