China ETS: Emissions trading volumes, prices recover

: Coal, Emissions
21/09/17

Trading volumes in China's national emissions trading scheme (ETS) rose fivefold this week, while prices edged higher.

The total open-bid transaction volume over 13-17 September was 32,090t of CO2 equivalent (CO2e), compared with 6,312t CO2e last week. Volumes surged to 21,900t today, ahead of the mid-autumn festival that will close markets on 20-21 September.

This week's weighted-average price increased by 1pc from a week earlier to 43.99 yuan/t ($6.81/t). The closing price today was Yn43.43/t, down by 1.3pc from 10 September.

There were no bulk agreements traded for a third straight week.

Chinese authorities have been calling for improvements to the carbon pricing mechanism. China should develop rules to set emissions caps, which would create the basic foundation for an effective carbon trading market, and also include more emissions sectors and third-party participants in the ETS, the government-backed China Council for International Co-operation on Environment and Development (CCICED) said in a 10 September report.

The national ETS initially covers only thermal fuel-based power generation. Allowances have been awarded for free by the government, based on relative carbon-intensity benchmarks rather than absolute emissions, reducing incentives to trade on the ETS.

Weekly policy review

China will improve its voluntary greenhouse gas emission offset trading mechanism, while also including offset projects such as forestry carbon sinks, renewable energy and methane utilisation in the national ETS, top governing body the state council said this week. The comments were part of a guidance document on reforming the ecological protection compensation system, with the aim of increasing incentives for low-carbon projects and initiatives.

Shanghai's ecology and environment agency said this week it had begun preliminary work to include the petrochemical, chemical, steel, metal and aviation sectors in the national ETS, including emissions data reporting and accounting.

China is intensifying measures to clamp down on industrial energy consumption after some provinces missed their energy use and intensity targets in the first half of this year. The government will set total energy consumption quotas for each year and tighten approvals for new projects with high energy use and intensity, as well as ban approvals for new energy-intensive projects if a provincial government misses its energy-control target for a certain period, top economic planning agency the NDRC said.

The NDRC will also raise the frequency of energy use reviews of each province to quarterly instead of annually for the 2021-25 period.

China ETS volumes & prices

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25/03/19

UK study sets out Grangemouth's post-refining future

Edinburgh, 19 March (Argus) — A government-funded study has identified nine potential low-carbon and renewable options for the Grangemouth site in Scotland following the planned closure of its 150,000 b/d refinery in the second quarter this year. The nine possible projects outlined in the Project Willow study centre around waste, bio-feedstocks and industries supporting the development of offshore wind. They could benefit each other through synergies and create up to 800 direct jobs, but their success "will require significant contributions from both the public and private sector", with an initial £3.5bn ($4.5bn) in capital investments needed, the study said. The £1.5mn report, paid for by the UK and Scottish governments, was commissioned by Grangemouth refinery operator Petroineos, which announced in November 2023 that it was going to close the plant and convert it into a fuel import terminal. The UK and Scottish governments have since set aside £25mn and £200mn for Grangemouth, along with other initiatives such as Scotland's £100mn Falkirk and Grangemouth Growth Deal package. The study's 'waste' pathway comprises a hydrothermal plastic recycling project, a dissolution plastic recycling facility and a bio-refining project relying on bacterial fermentation (ABE). Under the 'bio-feedstock' pathway, the study envisages a second-generation bioethanol plant on Scottish timber feedstock and an anaerobic digestion facility using organic waste to produce biomethane. Second-generation bioethanol refers to ethanol made from non-edible resources such as biomass. This pathway also suggests a sustainable aviation fuel (SAF) plant, with production made from hydroprocessed esters and fatty acids (HEFA). UK trade union Unite has been supportive of this option , but Petroineos deemed it unviable "under current regulatory conditions". The third pathway — called conduit for offshore wind — is mostly focused on hydrogen. It includes fuel switching, producing jet from e-methanol and methanol as well as producing low-carbon ammonia for the shipping and chemicals industry. The second-generation ethanol plant and the HEFA facility, as well as the e-methanol and e-ammonia projects, would have a longer 2030-40 timeline, against a 2028-30 timeline for the other projects. The projects would benefit from existing infrastructure such as Grangemouth's port, which includes container, bulk and liquid fuel terminals. "There are also opportunities to reuse existing tank storage, ethanol facilities, and other ancillary assets at the site," the study said. Unite has criticised the study's project timelines, pointing out most would start years after the refinery had closed, by which time jobs would have been lost. Many of the projects "could be fast tracked and implemented now", including converting the refinery to SAF production, the union said. "Project Willow was created by Petroineos as a fig leaf to justify its act of industrial vandalism of shutting the refinery and axing jobs. It asked the wrong questions and then failed to provide the answers that Grangemouth refinery workers need," Unite general secretary Sharon Graham said. "There are projects like SAF production which can be swiftly enacted to protect jobs and those opportunities must not be lost. This would pave the way for the UK to become a world leader in green aviation." By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indonesian coal producers wary of proposed royalty hike

25/03/19

Indonesian coal producers wary of proposed royalty hike

Manila, 19 March (Argus) — Indonesian coal producers have raised concerns on a proposed royalty hike by the country's ministry of energy and mineral resources (ESDM). The proposal is ill-timed given an extended sluggishness in coal prices and the impact of recent government regulations, the Indonesian Mining Association (IMA) said. The industry is still navigating the regulatory changes announced in February and a higher royalty will impact revenues, IMA said. Exporters of national resources, including coal but excluding oil and gas, are required to place 100pc of the foreign currency proceeds into a special deposit account of a national bank for at least 12 months, starting on 1 March. This marks a significant increase compared with the initial regulation, which required exporters to place only 30pc of the foreign currency proceeds onshore for three months. Jakarta also approved a decision in February to link coal exports to HBA , a government set reference price, starting from 1 March. Coal prices have been steadily declining since 2024, which has significantly pressured margins, prompting many producers to keep output flat in 2025 and focus on ways to increase efficiency and reduce costs. A higher royalty could lead to lower coal production, IMA said. Coal producers prepare their Work Plan and Budget (RKAB) based on current coal royalty rates, it said. A change in royalty might necessitate a review of these plans since the validity period for the RKAB is three years. The ESDM first announced its plans to increase royalty rates in the first half of March. Coal royalties could be increased by 1 percentage point for producers holding business permits (IUP) for GAR 5,200 kcal/kg or lower coal products when the HBA is at or above $90/t. This would result in GAR 4,200 kcal/kg or lower coal having a new royalty rate of 9pc from the current 8pc. Coal with a higher calorific value (CV) than GAR 4,200 kcal/kg up to GAR 5,200 kcal/kg would have a new royalty rate of 11.5pc, up from 10.5pc. Royalties from coal with a higher CV than GAR 5,200 kcal/kg would remain unchanged at 13.5pc under the proposed revision. Coal Contract of Work (PKP2B) holders will retain their 13.5pc total tariff rate across all coal grades, as the 1 percentage point increase in royalty rates will be offset by a 1 percentage point decrease in mining receipt shares, the ESDM said. The increase was proposed to raise non-tax state revenue collections from the mining industry. By Antonio delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Global temp 1.34-1.41°C above pre-industrial era: WMO

25/03/19

Global temp 1.34-1.41°C above pre-industrial era: WMO

London, 19 March (Argus) — Global temperatures are at around 1.34°C-1.41°C above pre-industrial levels, although 2024 was likely to have breached 1.5°C, the World Meteorological Organisation (WMO) said today in its State of the Global Climate 2024 report. The long-term 1.34°C-1.41°C range is the best estimate currently possible, but "given the uncertainty ranges, the possibility that we have already exceeded 1.5°C cannot be ruled out", the WMO said. The Paris climate agreement seeks to limit the rise in global temperatures to "well below" 2°C above pre-industrial levels, and preferably to 1.5°C. But last year was the hottest on record , at 1.55°C above the pre-industrial average, with a margin of uncertainty of 0.13°C either above or below that figure, the WMO said in January. The organisation uses datasets from six weather and science agencies. Individual years that exceed the 1.5°C level do not mean that the Paris agreement goals are out of reach, as the temperature limits sought by the accord work on a timeframe of at least 20 years. But "it is a wake-up call that we are increasing the risks to our lives, economies and to the planet", WMO secretary general Celeste Saulo said. The record-high temperatures in 2023 and 2024 were owed to "the ongoing rise in greenhouse gas emissions" (GHGs) as well as "a shift from a cooling La Nina to warming El Nino event", the WMO found. Other contributing factors may include solar cycle changes, volcanic eruptions and a decline in cooling aerosols, it added. The atmospheric concentration of CO2 in 2023 was higher "than at any time in at least 2 million years", the WMO found. Concentrations of other key GHGs methane and nitrous oxide in 2023 reached their highest in the last 800,000 years, while data show that levels of those GHGs continued to increase in 2024, it added. The concentration of CO2 in 2023 was at 420 parts per million (ppm) — 2.3ppm more than in 2022 — and at 151pc of the pre-industrial concentration. CO2 levels correspond to 3.276 trillion t in the atmosphere, the WMO said. Concentrations of methane and nitrous oxide in 2023 stood at 265pc and 125pc of pre-industrial levels, respectively. The majority of surplus heat goes into warming the ocean, which — along with ice loss on land — causes sea levels to rise. The "rate of sea level rise has doubled since satellite measurements began", from 2.1mm/yr between 1993 and 2002, to 4.7mm/yr between 2015-2024, the WMO said. The organisation also flagged the number of extreme weather events in 2024, citing wildfires, hurricanes, floods, droughts and more, which led to the "highest number of new displacements recorded for the past 16 years, contributed to worsening food crises, and caused massive economic losses". By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Groups to sue Alliant over Iowa coal ash discharge

25/03/18

Groups to sue Alliant over Iowa coal ash discharge

New York, 18 March (Argus) — Three environmental groups intend to sue Alliant Energy subsidiary Interstate Power and Light, alleging that groundwater discharges from the Ottumwa coal plant's coal ash impoundment in Iowa violate the Clean Water Act. The groups — the Iowa Environmental Council, Sierra Club, and Environmental Law & Policy Center — filed a formal notice to sue the utility on 12 March, initiating a 60-day period for the company to respond and comply with the Clean Water Act. The environmental groups claim Ottumwa has continued to release groundwater with arsenic and other toxic pollutants into the Des Moines River through a drain under the plant's lined coal ash pond despite being told by Iowa regulators in 2023 that such releases were not allowed under the plant's stormwater permit. The utility also has not applied for a new permit since the Iowa Department of Natural Resources mentioned the issue, the groups claim. "We want the unpermitted pollution to stop," said Environmental Law & Policy Center senior attorney Josh Mandelbaum. "We will evaluate any response by the utility, but if there continues to be unpermitted pollution, we intend to act." Alliant said that it is abiding by all regulated and required groundwater monitoring processes. The company "proactively" reached out to the Iowa Department of Natural Resources about the permit and has been "actively communicating" with the department while "systematically working" toward a solution for the groundwater discharge. "The system under the landfill is engineered so the groundwater does not come into contact with the contents of the landfill," the coal plant operator said in its statement. Still, environmental groups insist that "a solution has not been implemented and Alliant continues its unpermitted discharge". The Ottumwa coal plant received 1.27mn short tons (1.15mn metric tonnes) of coal from four Wyoming mines in 2024, according to the most recent US Energy Information Administration data. By Elena Vasilyeva Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

German climate fund draws interest from Africa

25/03/18

German climate fund draws interest from Africa

Berlin, 18 March (Argus) — The €100bn climate action allocation in Germany's proposed €500bn infrastructure fund is a "very strong signal" which could help Africa with the huge challenges the continent faces in mobilising private capital, delegates heard at the German-African Energy Forum in Berlin this week. Germany's €100bn climate fund "couldn't come at a better time", Johannesburg-based Africa Investor Group chief executive and chairman Hubert Danso said, given South Africa's presidency of the G20 and the presidency's focus on reducing the cost of capital for developing countries through the planned set-up of a "cost of capital commission", which Danso said is addressing the "unjustified" premiums paid by developing countries. Germany's budget allocation could "fold into" the work of the G20 and the run-up to the UN Cop 30 climate summit in Belem, Brazil, later this year, Danso suggested. Michael Kellner, junior minister at the economy and climate ministry of Germany's outgoing government, told delegates that the multi-billion euro package will provide "much more finance for fighting climate change". Kellner, a member of the Green Party which lost the election but was instrumental in pushing through the €100bn allocation, said that the finance will also be used outside Germany. He pointed to Germany's "flagship" green hydrogen import scheme, H2Global, which is likely to see more co-operation with Africa. Kellner flagged the "impressive" production of green iron in Namibia, which could be of interest to German carmakers. "We will be watching [the €100bn climate allocation] closely," Danso told Kellner and representatives from Germany's development ministry. The main challenge, and opportunity, is to make developing countries' nationally determined contributions (NDCs) to the Paris climate agreement more "investable", Danso said. The next round of NDCs, to be submitted this year, must become more "strategic" and "programmatic", Danso urged. In this context, NDCs can drive carbon markets by opening up collaborative approaches, consultant CarbonWise founder and chief executive Toni Heigl told delegates. If a country decides to exceed its NDC, for instance by pushing certain activities that are dependent on external funds, this "helps to trigger the funding", Heigl said. Carbon markets offer "vast" opportunities in Africa, especially the schemes under Article 6 of the Paris deal, Heigl said. With the final Article 6 rules passed at Cop 29 last year , most companies still "underestimate" the potential of these carbon markets, Heigl said, despite Article 6 credits being "8-10 times" more valuable than those under the voluntary carbon market. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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