EU must be 'honest' about Green Deal: Poland

Spanish Market: Emissions
22/01/25

The EU must undertake a "full and very critical" review of the bloc's Green Deal, Polish prime minister Donald Tusk told the European Parliament.

Tusk outlined Warsaw's view on climate and energy policies during the country's recently-started six-month presidency of the EU's council of ministers.

"If we go bankrupt no-one will care about the world's environment any more," Tusk said, calling for an honest, full and "very critical review of all regulations, including those arising from the Green Deal". Launched in 2019 under the previous European Commission term, also led by president Ursula von der Leyen, the Green Deal was adopted in 2023 and notably included revisions of the emissions trading system (ETS) to support a steeper 55pc reduction in the bloc's greenhouse gas (GHG) emissions by 2030.

Tusk wants any review to identify and change EU laws that may lead to higher energy prices. "There is, for example, the issue of ETS 2 in front of us," he said, singling out the separate trading system covering emissions from road transport and heating fuels, which is scheduled to launch in 2027.

"I would also ask you to reflect deeply, critically and bravely on the consequences of introducing ETS 2 at such a rapid pace," he told parliament. Poland holds the EU council presidency until the end of June.

Any legal changes to the ETS would require a majority within parliament and a qualified majority of the 27 EU member states. But several, including France, Germany, Sweden and Austria, have been outwardly reluctant to tweak climate legislation and delay the introduction of the ETS 2.

"Our union will only survive if we continue to implement the Green Deal, the sole instrument capable of ensuring the survival of our planet," warned Spanish MEP Iratxe Garcia, leader of parliament's second largest group, the centre-left S&D.

By Dafydd ab Iago

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11/03/25

EU consults on decarbonisation, clean tech aid

Brussels, 11 March (Argus) — The European Commission has opened a consultation on updates to its state aid rules, which aim to take into account the bloc's proposed clean industrial deal — designed to simplify and speed decarbonisation. The commission is aiming to publish the rules in June, following input from EU states. The updated state aid rules would then apply to how the commission decides on EU states' financing of projects up until the end of 2030. The draft provides for member states' simplified tender procedures for renewables and energy storage. The commission specifically notes the possibility of granting aid without tender for less mature technologies, such as renewable hydrogen. There would also be more flexibility for EU states aiding industrial decarbonisation, with a choice of tender-based schemes, direct support and new limits for very large projects. The commission lists batteries, solar panels, wind turbines, heat-pumps, electrolysers and carbon capture usage and storage among clean technologies that can be supported, as well as their key components and critical raw materials. Officials note the possibility of EU countries de-risking private investment. The rules, when adopted, would also allow for investment in storage for renewable fuels of non-biological origin (RFNBOs), biofuels, bioliquids, biogas, biomethane, and biomass fuels as long as they obtain at least 75pc of their content from a directly connected and related production facility. Aid can only be granted for biofuels, biogas, and biomass fuel production if compliant with the bloc's renewables directive. While the rules for biofuels are not new, they do reflect the wider scope of aid now foreseen by the commission. And officials say the rules allow for projects in the EU to receive aid from a member state if a comparably project would receive aid in a third country. The commission released its proposed clean industrial deal in late February . The deal targets a simplification of rules, to allow EU member states to aid industrial decarbonisation, renewables rollout, clean tech manufacturing and de-risking private investments. Today's consultation runs until 25 April. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to declare power 'emergency' in some states

11/03/25

Trump to declare power 'emergency' in some states

Washington, 11 March (Argus) — President Donald Trump said today he intends to declare a "National Emergency on Electricity" in states that could be affected by Ontario's imposition of a 25pc surcharge on electricity exports and further threat to cut off exports entirely. The emergency declaration will allow the US to alleviate the "abusive threat" from losing electricity imports from Canada, Trump wrote in a post on social media. Trump said in response to the surcharge, he would double existing tariffs on Canadian steel and aluminum , and warned Canada that it would pay a high cost if Ontario cuts off the flow of electricity to the US. "Can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat?" Trump wrote. "They will pay a financial price for this so big that it will be read about in History Books for many years to come!" On Monday, Ontario put a 25pc fee on its electricity exports to New York, Michigan and Minnesota in response to Trump's tariffs on Canada. Ontario premier Doug Ford said he was applying "maximum pressure" on the US over its tariff war, and threatened to cut off exports entirely if Trump increased tariffs further. Ontario was the largest exporter of electricity to the US in 2023, sending 15.2 TWh to the US. Trump already declared a national energy emergency on 20 January, unlocking emergency authorities to fast-track permitting and seek to retain production of baseload power plants. Trump has yet to offer more details on the electricity emergency, but the US Department of Energy (DOE) can issue emergency orders that would allow power plants to run at maximum capacity or waive some environmental regulations. DOE did not immediately respond to a request for comment. The New York Independent System Operator, which runs the state's electric grid, said it was analyzing the effects of Ontario's orders and expects to have "adequate reserves to meet reliability criteria and forecast demand for New York." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil sector climate 'problem' is resolved: Al-Jaber

11/03/25

Oil sector climate 'problem' is resolved: Al-Jaber

Houston, 11 March (Argus) — Adnoc chief executive Sultan al-Jaber, who just two years ago called his fellow oil executives' view on climate change problematic and urged them to prepare for the eventual decarbonization of the global economy, today recast the problem and pronounced it to be solved. "Energy realism is taking center stage" again and "the world is finally waking up to the fact that energy is the solution," al-Jaber said at the CERAWeek by S&P Global conference in Houston. Speaking at the same venue in March 2023, the head of the UAE's national oil company said then that the oil and gas industry had a special responsibility for addressing climate change and that it needed to decarbonize its own operations and help its customers reduce their emissions as well. But speaking today, al-Jaber said that his goal all along has been to "inject realism and pragmatism across the whole process". Al-Jaber in 2023 served as the president of the UN Cop-28 climate conference in the UAE. In that role, "one of the biggest findings I came across very early on was the fact that the narrative [concerning the oil sector and climate change] was completely hijacked, and it was the big responsibility on my shoulder, on my team, to help correct that narrative," al-Jaber said. The Cop-28 summit al-Jaber presided over concluded with a call to transition away from fossil fuels, rather than phase them out. Al-Jaber said his 2023 call to action on his fellow executives has succeeded in "making them be included" and ensured "that they are not only seeing part of the solution, but in fact, the energy business [will] drive the solution." The last two years also witnessed a change in policies in Washington, and in the message from US government officials to CERAWeek attendees. Gone is the talk of decarbonization and net zero emissions, and in its place, US energy secretary Chris Wright on Monday described climate change as a mere "side effect" of economic development. Al-Jaber also said that Adnoc's recently launched energy investment arm XRG views investments in the US not only as a priority but as an "absolute imperative". XRG is looking to invest in natural gas — along the entire supply chain from exploration to distribution — and also in petrochemicals, al-Jaber said. Adnoc last year took a 35pc stake in a hydrogen project at ExxonMobil's Baytown, Texas, refinery and similar investments are a possibility, he said. "Over the next few months... you will be witnessing very serious, large, significant investments by XRG," al-Jaber said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil ignores fossil fuel phase-out in Cop 30 letter

10/03/25

Brazil ignores fossil fuel phase-out in Cop 30 letter

Sao Paulo, 10 March (Argus) — Climate activists welcomed Brazil's stance of making the UN Cop 30 summit a "turning point" for real climate change commitments but criticized the presidency's letter for turning a blind eye to fossil fuels' leading role in global warming. The summit's president Andre Correa do Lago released on Monday a letter addressing the event's goals and outlooks, which includes boosting climate financing to $1.3 trillion/yr from the target stipulated at Cop 29 of $300bn/yr. "Lago calls on foreign countries — especially the US — to leave individuality and irresponsibility behind in exchange for cooperation and our planet's future," scientist Karin Bruning — a graduate of the University of Heidelberg and the Massachusetts Institute of Technology — said. "However, the letter has no use if Brazil does not pull its own weight." Bruning recalled Brazilian president Luiz Inacio Lula da Silva's public feud with the country's environmentalist watchdog Ibama regarding the exploration in Brazil's equatorial margin region. "A country with so much renewable energy available cannot look at past solutions such as exploring and pushing for fossil fuels," Bruning said. She also highlighted the importance of respecting technical and scientific decisions on matters such as oil exploration. Environmental concerns have always been at the center of the equatorial margin debate, as it stands near a freshwater barrier reef. State-controlled Petrobras has long been trying to explore the area's Foz do Amazonas basin — which holds an estimated 10bn bl of crude, according to energy research bureau Epe — but has struggled to receive the environment licenses to do so. Ibama last denied the company a request to drill in the area in May 2023. Brazilian climate think tank Observatorio do Clima called the letter "inspiring," but added that it "excludes the elephant in the room." It recognized the letter as a "relief for giving the Paris Agreement negotiations to professionals who understand the gravity of the moment" but bashed it for keeping fossil fuels' gradual stoppage out of Cop 30's priorities list. Still, Correa do Lago's letter recognized "the scale of the challenge and the urgency of response," according to climate change think-tank E3G's associate director Kaysie Brown. Holding on to past pledges Correa do Lago's letter focused on progressing previous decisions regarding developing countries and increasing financing for them, which has long been one of the Brazilian government's priorities. This includes working on a roadmap to reach $1.3 trillion/yr in climate finance from all sources by 2035, as agreed at Cop 29 in Baku. But previous Cop agreements and the conclusions of the first global stocktake in Dubai (GST) — a five-yearly checkpoint agreed upon in the 2015 Paris accord — on energy were ignored and pushed back against in Baku's final text. "We do have pending issues to solve at Cop 30, notably the UAE dialogue on implementing the GST outcomes and the just transition work programme," Correa do Lago said. "The GST is an invaluable legacy that unites us. We must all continue to subscribe to it as the ultimate benchmark for climate implementation." By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

California lawmakers in new push for E15 blend

07/03/25

California lawmakers in new push for E15 blend

Houston, 7 March (Argus) — California lawmakers continue to weigh resources for state regulators to expedite their review of higher-ethanol gasoline blends this legislative session. Dovetailing with a request from governor Gavin Newsom (D) in October 2024 to speed the California Air Resources Board's (CARB) review, state legislators are considering several bills to appropriate the needed funds and authorize California to allow the use and sales of a 15pc ethanol blend (E15). AB 30, sponsored by Assembly members David Alvarez (D) and Heath Flora (R), would require CARB to complete a rulemaking allowing blends up to E15 by 1 July, citing the urgency of lowering fuel costs in the state. If the agency cannot meet this deadline, the bill would automatically approve these higher blends for sale. Currently, the state does not allow blends higher than E10 because of environmental concerns, such as the potential for increased emissions of NOx, which contributes to smog. "E15 is already approved in 49 other states so it's high time that California joins in," Alvarez's office said. The bill is currently before the Assembly Natural Resources Committee. But its timeline would be difficult for CARB to meet. To get to the point where it could hold a rulemaking to allow E15, the agency first must finish the multi-tier study it began in 2018, at the direction of lawmakers, to evaluate adoption of the higher blend. On average, the process lasts two to five years and requires a workgroup to determine whether any new fuel will have new environmental or public health impacts. Transportation-related greenhouse gas (GHG) emissions remain the largest obstacle to the state's climate goals, which include a 40pc reduction in emissions by 2030 from 1990 levels, and net zero in 2045. This sector accounted for 139.9mn metric tonnes, or 37.7pc, of statewide emissions in 2022, the most recent year for data. While state officials have set increasing targets for electric and zero-emission vehicle adoption, the economy and consumer demand still center on conventional fuels, with retail price spikes prompting Newsom to call a special session last year and reigniting the push for use of E15. The state effort joins other recent E15 initiatives on the regional and nationwide level. In February, a group of bipartisan US lawmakers introduced legislation that would make E15 available year-round. The higher blend currently is not available during the summer months because the federal Clean Air Act extends a fuel volatility waiver to E10 gasoline but not E15. The bill could be incorporated into larger government funding packages later this year. In addition, a host of midcontinent states are set to gain year-round access to E15 beginning on 28 April — a measure that oil groups have opposed because of logistical challenges of supplying the required boutique gasoline blendstock on a regional basis. But the growing federal focus on E15 does not allow California to bypass its process to adopt new fuels. CARB completed the report required by Tier I of this process in 2020 but must still finish the outstanding reports required under the next two tiers, including addressing issues like data gaps and the suitability of the fuel. The agency has also said it needs to address the potential for increased participation in the state Low Carbon Fuel Standard (LCFS) and other programs as a result of rising production and consumption of E15. CARB is seeking $2.3mn in ongoing funds for additional staff and resources to complete the review, which it estimates could be done by mid-2025, as part of the 2025-26 state budget. But the agency would not adopt regulations until the second quarter of 2026, well past the deadline in AB 30. The governor's January budget proposal , now reflected in budget bills AB 227 and SB 65, included nearly $2.3mn/yr to support completion of the study. But the state's nonpartisan Legislative Analyst's Office (LAO) last month recommended limiting the funding to two years and later consider additional money if CARB decides to adopt E15. By Denise Cathey and Payne Williams Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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