Indonesia aims to launch 15 CCUS projects by 2030
Indonesia aims to bring 15 potential carbon capture and storage (CCS) and carbon capture, utilisation and storage (CCUS) projects onstream between 2026-30.
Indonesia has carbon storage potential in 20 basins, comprising573bn t of saline aquifer storage and 4.8bn t of depleted oil and gas reservoirs across Sumatra, Java, Kalimantan, Sulawesi and Papua, according to the country's ministry of energy and mineral resources (ESDM).
The government is pushing for the Sunda and Asri basins as well as the Bintuni basin to become CCS hubs, said the ESDM's director of upstream oil and gas business development, Ariana Soemanto.
Indonesia in January issued a presidential regulation on the implementation of CCS activities, which sets out the framework for the country's CCS development. CCS development in Indonesia can be undertaken via two pathways under the regulation, said Ariana. The first is the implementation of co-operation contracts in existing oil and gas areas by upstream contractors. The second pathway allows parties to establish a separate CCS business through target injection zone exploration permits and carbon storage operation permits.
The regulation also allows CCS operators to set aside 30pc of the storage capacity from international sources. Singapore was the first country to sign an agreement with Indonesia after the regulation was issued, to co-operate on cross-border CCS.
Countries such as Malaysia and Indonesia have the storage space to sequester captured CO2, but not the funds to develop the infrastructure. Direct government investment is necessary to develop and install CCS infrastructure such as pipelines, and carbon pricing could be a solution.
Indonesia also launched its carbon exchange in September last year.
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EU’s centre-right EPP mulls Green Deal tweaks
EU’s centre-right EPP mulls Green Deal tweaks
Brussels, 3 July (Argus) — The European Parliament's largest group, the centre-right EPP, is working to complete the bulk of its strategy programme on 4 July at a meeting in Portugal. Key elements in the party's 2024-29 policy agenda include significant changes to the bloc's climate and energy policy for 2030. A draft of the five-point policy plan lists revising CO2 standards for new cars and vans to "allow for the use of alternative zero-emission fuels beyond 2035". The EPP also calls for a new e-fuel, biofuel and low-carbon fuel strategy "with targeted incentives and funding to accompany the EU hydrogen strategy". Additionally, the EPP wants the incoming European Commission to create a "single market for CO2" with a market-based framework for carbon capture and storage (CCS) and carbon capture and utilisation (CCU), through an accompanying legislative package similar to that adopted for the EU's gas and hydrogen markets. The strategy document discusses a "Green Growth Deal" aiming to achieve the EU's 55pc emission reduction target by 2030 — from 1990 levels — and climate neutrality by 2050, while boosting the EU's competitiveness and ensuring technological neutrality. The draft document emphasises the need to transition "away from fossil fuels towards clean energy", also by ramping up international hydrogen production. And the draft advocates for a "simple, technology-neutral, and pragmatic definition for low-carbon hydrogen" in upcoming technical legislation from the commission. More controversial points include postponing application of the EU's deforestation regulation and addressing problems related to its implementation. The EPP also wants to split the EU's industrial emissions directive into "industrial and agricultural parts", conduct a "full-scale" inquiry into why farmers are not receiving fair prices for their products, and require robust impact assessments for the economic viability of farms for any new animal welfare proposals. The group's members of parliament are meeting until 5 July. Commission president Ursula von der Leyen is also attending. She was [recently nominated](https://direct.argusmedia.com/newsandanalysis/article/25825320 by EU leaders for re-election. The EPP programme will significantly influence policy priorities that von der Leyen would support, if she is approved by an absolute majority of 361 votes at a session in Strasbourg on 15-18 July. But von der Leyen may need to drop more controversial points to secure a majority with liberal, centre-left and green support. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
California voluntary offset bill stranded
California voluntary offset bill stranded
Houston, 2 July (Argus) — A California bill targeting sellers of questionable or false voluntary offsets credits in the state has died after its author pulled it from a committee hearing on Monday, leaving no way to advance the bill in this session. SB 1036, introduced by state senator Monique Limón (D), would have made it unlawful for anyone to issue, market, certify or sell voluntary carbon offsets, or maintain a registry, if they have knowledge that the credit-generating projects are not actually reducing or removing greenhouse (GHG) emissions as claimed. The bill spent just over a month in limbo ahead of a Monday hearing before the state Assembly Natural Resources Committee, after passing out of the Senate by a 31-15 vote in May. But Limón withdrew the bill just before the hearing, which represented its final chance to meet Wednesday's deadline for advancing out of the policy committee. Limón cited difficulties gaining support from market participants as the reason for withdrawing the bill, which would add claims around carbon offsets purchased from the voluntary market to the state code on false or misleading advertising. "Despite the deep deficiencies within voluntary carbon markets, it became clear that market participants are unwilling to accept legally enforceable standards to address the magnitude of junk offsets being marketed and sold in California," she said. This is Limón's second attempt to pass a bill regulating claims in the voluntary carbon offset sphere, following SB 390, which passed largely unopposed in the legislature last year before governor Gavin Newsom (D) vetoed the bill. The governor rejected the bill on concerns that it might affect well-meaning sellers and verifiers, hurting the in-state and wider voluntary carbon markets. While the predecessor bill smoothly moved through the legislature last session before the governor's veto, the same was not true for SB 1036, which faced opposition from environmental market participants and industry groups such as Anew Climate, Western States Petroleum Alliance (WSPA), the Securities Industry and Financial Markets Association (SIFMA) during this session. Critics of the bill said the requirements would be unworkable, discourage project development and investments and increase the role of the courts in reviewing the intricacies of GHG accounting. It is unclear if Limón will again revive this specific approach to regulate the voluntary carbon offset market in the next legislative session. But the senator has no plans to stop, her office said, and she intends to decide early next year her next steps to address the voluntary carbon market. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Washington advances carbon market linkage plans
Washington advances carbon market linkage plans
Houston, 2 July (Argus) — Washington regulators are moving forward with plans to further align the state's cap-and-trade program with the California-Quebec carbon market. The state Department of Ecology has released for public comment two draft rules related to holding limits, biofuel emissions and electricity imports that are intended to smooth the way for linkage ahead of formal discussions with California and Quebec regulators that could kick-off next year. The first draft rule, issued on Monday, would revise general cap-and-trade program mechanics, such as raising the holding limit for allowances issued each year for general market participants to 25pc from 10pc should the programs link. It would also revise emissions exemption for biofuels, recently authorized by state lawmakers, of 30pc lower greenhouse gas (GHG) emissions than comparable petroleum fuels and allow Ecology to add an exemption standard used by a linked program, for a two-part standard. Washington set the ball rolling on its ambition to link with the Western Climate Initiative (WCI) partners California and Quebec last year in hopes that creating a larger North American carbon market will help reduce compliance costs. The state legislature authorized Ecology to make the changes in legislation adopted earlier this year . The program costs became a significant issue last year, when Washington Carbon Allowances (WCAs) rose as high as $70/metric tonne (t) in the secondary market. California and Quebec agreed in March to explore adding Washington to the WCI, but progress is unlikely to happen this year as California regulators first focus on updating the state's cap-and-trade program. In the interim, Ecology said it is still considering other amendments that could help with linkage, including moving the state's compliance periods, which run on a four-year cycle, to the three-year cycle used in the linked market. But California and Quebec are considering shifting their compliance periods to either four years or two years for 2026-2030, and then to either five years or alternating between three-year and two-year periods after 2030 to align with their respective statutory targets, which Ecology will have to take into account. Washington has set a target to cut GHG emissions by 45pc by 2030 compared with 1990 levels, and reach net-zero emissions by 2050. The program cap-and-trade program covers industrial facilities, power plants, natural gas suppliers, and other fuel suppliers with emissions of at least 25,000 t/yr. Ecology is accepting feedback on its linkage rulemaking through 27 September, with a public meeting set for 10 July. Imports and reports In a separate rulemaking announced last week, the state is considering expanding reporting requirements and covered emissions under the program to included imported electricity from centralized electricity markets (CEM). The state is required under its Climate Commitment Act to adopt a methodology for imported electricity by 1 October 2026. The proposed amendments would come into play in 2027, allowing regulators to assign GHG emissions to imports of electricity from CEM and for the state to better understand how the imports may affect its climate goals. Under the proposed amendments, regulators would increase allocations of no-cost allowances to electric utilities. The state issues no-cost allowances to electric and natural gas utilities, and industrial entities, to mitigate the cost of decarbonization. Electric utilities must consign an increasing portion of these allowances to state auction starting in 2027 and must use this revenue for projects to benefit customers through projects like energy transition billing credits. Regulators estimate that bringing CEM importers under the cap-and-trade program will result in an aggregated annual compliance cost of around $7mn-$119mn, depending on allowance prices, which regulators expect will fall as emissions declines outweigh imports over time, according to a preliminary regulatory analysis released last month. The proposed changes reflect estimates last year by the state Department of Commerce that 43pc of the state's electricity supply by 2050 will come from imports, driven by Washington moving its electricity away from fossil fuels to renewables sourced from within and outside the state to meet the goal of decarbonizing the state's grid by 2045. Ecology will accept feedback on its proposed rules for imported electricity through 20 August, with final adoption planned in December. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EPA defends 2023-2025 renewable fuel volumes
EPA defends 2023-2025 renewable fuel volumes
New York, 2 July (Argus) — The US Environmental Protection Agency (EPA) says it did not violate the law when it set renewable fuel standard volume mandates for 2023-2025, rebutting industry and environmentalist concerns about the agency's reasoning in a recent court filing. EPA told the US Court of Appeals for the District of Columbia Circuit in a filing late last week that it "lawfully and reasonably" set volumes for cellulosic, biomass-based diesel, advanced, and conventional biofuels for 2023-2025, relying on "the same type of analyses" that the court has approved in prior cases. Among other arguments, the agency criticized arguments from refiners that said cellulosic biofuel requirements relied on "overly aggressive" assumptions and from environmental groups that said the agency did not sufficiently consider potential environmental impacts. There is related litigation before the court involving the agency's reporting requirements for biogas producers and the agency's rejections of petitions to exempt small refineries from 2022 requirements. The DC Circuit affirmed biofuel blending requirements for 2020-2022 in May this year, and EPA says the court should make a similar determination about the agency's subsequent rulemaking. EPA's broad defense of its 2023-2025 blending requirements, while not surprising, suggests that the agency is holding firm against recent calls from industry groups to acknowledge past mistakes and shift course. The Clean Fuels Alliance America asked EPA in a formal petition last week to raise volume requirements for biomass-based diesel by more than 2mn USG each for 2024 and 2025. And EPA recently rejected a petition from the American Petrochemical and Fuel Manufacturers that asked for a partial reprieve from cellulosic biofuel obligations because of an undersupply of D3 renewable identification numbers. The agency, in its latest filing, quoted from prior DC Circuit rulings that said courts should be "particularly deferential" to agencies "in matters implicating predictive judgments." In other words, an agency misjudging future biofuel supply is not reason alone to overturn prior blending requirements, EPA argues. The US Supreme Court has been increasingly skeptical of deferring to executive agencies like EPA, and just last week struck down a long-running precedent that said courts should afford agencies significant leeway when interpreting ambiguous statutes. EPA is technically required to finalize renewable volume obligations for 2026 by November this year, but the agency has missed deadlines before and many in the biofuels industry are preparing for a rulemaking after this year's presidential election. Adding updates to previously set obligations would add further complexity to the agency's review. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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