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Coal loses ground in Brazil's energy mix

  • : Coal, Emissions
  • 24/09/09

Brazil's recently launched national energy transition policy barely mentions coal, highlighting the steady decrease of its usage in the country, slipping to just 4.4pc of Brazil's energy mix in 2023, according to energy research firm EPE.

Since 2014, Brazilian coal usage has declined steadily, losing 5.7 percentage points of its share of the energy mix. From 2022 to 2023 coal usage fell by 5pc, ​according to the latest national energy balance report.

Brazil's total energy consumption in 2023 grew by 3.5pc from the previous year, reaching 282.5mn metric tonnes of oil equivalent (mtoe).

The industrial sector was responsible for 31.8pc of all energy consumption in 2023. Sugarcane bagasse is the sector's main energy source, with a more than a 20pc share. But 11.6pc of Brazil's steel sector still uses coking coal as a feedstock, although that fell by 5pc from the previous year.

Natural gas has averaged a 10.4pc share of industrial energy demand over the past 20 years, oscillating between 8.8-11.4pc, according to EPE data, and reached 9.5 in 2023.

Overall, renewable energy sources account for 49pc of the Brazilian energy mix, against a worldwide average of 15pc, according to the International Energy Agency data.

Brazil's new energy transition policy will involve a flurry of renewable sources, such as wind, solar, hydro, biomass, biodiesel, ethanol, green diesel, carbon capture and storage, sustainable aviation fuel and green hydrogen, mines and energy minister Alexandre Silveira said.

Brazilian industrial energy sources, 2023 pc

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25/01/14

New York to propose GHG market rules in 'coming months’

New York to propose GHG market rules in 'coming months’

Houston, 14 January (Argus) — Draft rules for New York's carbon market will be ready in the "coming months," governor Kathy Hochul (D) said today. Regulators from the Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) "will take steps forward on" establishing a cap-and-invest program and propose new emissions reporting requirements for sources while also creating "a robust investment planning process," Hochul said during her state of the state message. But the governor did not provide a timeline for the process beyond saying the agency's work do this work "over the coming months." Hochul's remarks come after regulators in September delayed plans to begin implementing New York's cap-and-invest program (NYCI) to 2026. At the time, DEC deputy commissioner Jon Binder said that draft regulations would be released "in the next few months." DEC, NYSERDA and Hochul's office each did not respond to requests for comment. Some environmental groups applauded Hochul's remarks, while also expressing concern about the state's next steps. Evergreen Action noted that the timeline for NYCI "appears uncertain" and called on lawmakers to "commit to this program in the 2025 budget." "For New York's economy, environment and legacy, we hope the governor commits to finalizing a cap-and-invest program this year," the group said. State law from 2019 requires New York to achieve a 40pc reduction in greenhouse gas (GHG) emissions from 1990 levels by 2030 and an 85pc reduction by 2050. A state advisory group in 2022 issued a scoping plan that recommended the creation of an economy-wide carbon market to help the state reach those goals. By Ida Balakrishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

California GHG rulemaking hits speedbump


25/01/14
25/01/14

California GHG rulemaking hits speedbump

Houston, 14 January (Argus) — The California Air Resources Board (CARB) cap-and-trade program rulemaking is likely to weather further delays, according to one of the agency's top officials. The agency's "immediate" responsibility is to work with covered entities impacted by the ongoing Los Angeles County wildfires across its programs, according to deputy executive officer Rajinder Sahota. This means that the rulemaking is not "imminent or in the next few weeks." In addition, the agency needs to move carefully given the federal administration change , along with the negative response to proposed updates to the state's Low Carbon Fuel Standard received last year. CARB continues to evaluate program changes, with a focus on affordability, ambition and compliance costs. "We want to take time to ensure we get out foundational facts about the program especially as the legislature takes up the post-2030 role of the program," Sahota said. The cap-and-trade rulemaking has been marked by a series of delays, as regulators initially in 2023 estimated it would finish last year. In December , CARB said it would delay the publication of draft amendments until early 2025. CARB began to prepare for the rulemaking nearly two years ago, floating the idea of moving the cap-and-trade program to a more-stringent 2030 greenhouse gas (GHG) reduction target of a 48pc, compared with 1990 levels, rather than the current 40pc mandate. The agency's 2022 Scoping Plan prompted the idea as it showed a need for increased program ambition for California to remain on track for its target of net-zero by 2045. In line with this increased ambition, CARB will need to remove at least 180mn metric tonnes (t) of allowances from the 2026-2030 auction and allocation annual budgets to start with, and up to 265mn t in total from the program budgets from 2026-2045, agency staff have said. Quebec, California's partner in the Western Climate Initiative (WCI) carbon market, previously delayed publishing its draft package from the originally planned September 2024 to the first quarter of this year, with implementation expected in the spring. While the regulation was nearly complete in late September, the Quebec Environmental Ministry decided to postpone, citing the need to wait for California. If California delays its work through the first quarter of the year, this will likely require Quebec to also push back its rulemaking. This will also shorten the runway for both market partners to formally implement changes by 2026. The news has punctured the bullish sentiment for market participants on a timely end to the rulemaking. California carbon allowances for December delivery initially traded as high as $35.25/t on the Intercontinental Exchange (ICE) ahead of the announcement. The contract traded as low as $33.01/t after midday on Nodal Exchange following the news, before sliding lower in later trade. Outside of the WCI, Washington is also likely to see a slowdown in its carbon market ambitions. The state Department of Ecology is conducting its own rulemaking to align Washington's "cap-and-invest" program to facilitate linkage with the larger WCI market. But it will require California and Quebec to finalize their expected changes. California has indicated over last year that it does not intend to focus fully on linkage until its current rulemaking is complete. California's and Quebec's cap-and-trade programs cover major sources of the state's GHG emissions, including power plants and transportation fuels. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU air traffic growth threatens carbon budget: Study


25/01/14
25/01/14

EU air traffic growth threatens carbon budget: Study

London, 14 January (Argus) — European aviation's Paris climate agreement-aligned carbon budget will be depleted by 2026 if air traffic grows as industry expects in the coming years, according to a study by Brussels-based non-governmental organisation Transport & Environment. While the EU has pledged to reach net zero greenhouse gas emissions by 2050, the aviation sector is still expected to emit 79mn t CO2 by this date, according to scenarios put forward by European aircraft manufacturer Airbus and US-based Boeing. Airbus sees air traffic growing at an average rate of 5.7pc/yr in 2024-27 and by 2.6pc/yr in 2024-43, while Boeing expects a 5.6pc/yr rise in 2024-33 and a 2.5pc/yr rise in 2024-43, Transport & Environment said. If these projections are accurate, the aviation sector carbon budget needed to remain in line with the Paris accord's goal of limiting global warming to 1.5°C above pre-industrial levels would be depleted by 2026, the study found. Aircraft will have to burn 59pc more fuel in 2050 than in 2019 to meet this increased demand, the study found, even after taking into consideration efficiency improvements. This growth in traffic would also cancel out the benefits of sustainable aviation fuels (SAFs). The expected growth also implies that the sector could be burning as much fossil kerosine in 2050 as it did in 2023 — some 21.1mn t — even with 42pc of fuel use covered by SAFs under EU mandates, Transport & Environment said. The EU expects air traffic growth to be 60pc lower than the Airbus and Boeing projections. But even this smaller increase would mean emissions rising by 46pc by 2040 against 1990 levels, the study found. Transport & Environment called for all flights departing the EU to be included in the bloc's emissions trading system (ETS) by 2027, as part of efforts to make air ticket prices reflect the sector's climate impact. The scheme currently applies only to journeys within the European Economic Area. Tax exemptions on jet fuel should also be removed and value added tax applied to air tickets, the NGO said. It also recommended halting the expansion of airport infrastructure and improving rail infrastructure so that the railways can compete with air travel. And it called for penalties for non-compliance with SAF mandates and financial support for SAF production through auctions and contracts for difference. The European Commission's proposed target to cut the EU's overall net emissions by 90pc by 2040 from 1990 levels "is completely meaningless without concrete policies to reduce emissions from aviation", the NGO's aviation director, Jo Dardenne, said. By Navneet Vyasan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India's coal output hits all-time high in 2024


25/01/13
25/01/13

India's coal output hits all-time high in 2024

Singapore, 13 January (Argus) — India's coal production hit an all-time high last year, led by an uptick in utility demand and a broader government push to boost domestic output. Combined coal output from domestic sources such as state-controlled Coal India (CIL), Singareni Collieries (SCCL) and captive blocks reached 1.04bn t in calendar year 2024, up by 7pc or 70.4mn t from a year earlier, according to Argus calculations based on coal ministry data. This supported overall supplies, including supplies to utilities and the non-power sector, which reached 1.01bn t, from 950.2mn t in 2023. The steady increase in domestic coal output and supplies was also led by demand from utilities, as the country's coal-fired generation rose last year, and generators continued to replenish stocks to meet the rising power demand. The strong output also followed India's broader goal to raise local coal production, with an aim to trim imports and meet its broader energy security objective. Delhi has been pushing CIL to ramp up its output, while also seeking higher production from blocks allocated to utilities and the non-power sector. The growth in production and supplies likely weighed on thermal coal imports in 2024, with seaborne receipts estimated to have dropped last year, a first annual decline since 2021. The dip in India's demand for seaborne cargoes in a well-supplied market was reflected in recent prices, with the GAR 4,200 kcal/kg market for geared Supramaxes falling to a 44-month low of $49.43/t fob Kalimantan on 27 December, the last assessment of 2024. The market eased further to $49.25/t fob Kalimantan on 10 January. Output mix Production at state-controlled CIL stood at 785.2mn t in calendar year 2024, up from 756.1mn t a year earlier, while its supplies totalled 757.4mn t in the 12-month period, up from 738.6mn t in 2023, according to Argus calculations based on the company's monthly output data. State-owned SCCL produced 67.12mn t in 2024, down by 4pc or 2.5mn t in 2023, the coal ministry data showed. But this was more than offset by steady growth in coal production at captive coal blocks allocated to industrial coal consumers, state-government mining companies and some utilities. Coal output from the captive blocks rose to about 187mn t last year, up from 143.3mn t in 2023, the data showed. The higher captive coal production followed an increase in production from coal blocks allocated to state-controlled utility NTPC , which aims to become one of India's biggest coal producers in coming years. India's policy to auction coal mines for commercial mining by private companies is also beginning to support the overall captive coal output. Supply mix Combined domestic coal supplies to utilities from CIL, SCCL and captive blocks reached 831.44mn t, up by 6pc from a year earlier, the coal ministry data showed. India's coal-fired generation — which meets most of its power requirements — reached 1,293.19TWh last year, up by 5pc from a year earlier, the Central Electricity Authority (CEA) data show. Overall domestic coal supplies to non-power consumers such as steel and cement totalled about 179mn t last year, up by 13pc from 2023, according to the coal ministry data. Supplies to captive power units fall under non-power sector as per the data. By Saurabh Chaturvedi India's coal suppy mix (mn t) India's coal output mix (mn t) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

California governor eyes carbon market extension


25/01/10
25/01/10

California governor eyes carbon market extension

Houston, 10 January (Argus) — California governor Gavin Newsom (D) is planning to start discussions with lawmakers to enact a formal extension of the state's cap-and-trade program. Newsom included the idea in the 2025-26 budget proposal he released on Friday. "The administration, in partnership with the legislature, will need to consider extending the cap-and-trade program beyond 2030 to achieve carbon neutrality," the governor's budget overview says. The California Air Resources Board (CARB) believes it has the authority to operate the program beyond 2030, but a legislative extension would put it on much firmer footing. The cap-and-trade program, which covers major sources of the state's greenhouse gas (GHG) emissions, including power plants and transportation fuels, requires a 40pc cut from 1990 levels by 2030. CARB is eyeing tightening that target to 48pc as part of a rulemaking that could take effect next year to help keep the state on a path to carbon neutrality by 2045. Newsom's budget proposal highlighted the need to weigh the revenue received from the program carbon allowance auctions. That money goes to the Greenhouse Gas Reduction Fund (GGRF), which supports the state's clean economy transition through programs targeting GHG emissions reductions, such as subsidizing purchases for zero-emission vehicles (ZEVs). The budget plan added few new climate commitments, instead prioritizing funding agreed to last year. The governor's $322.3bn 2025-26 budget proposal would continue cost-saving measures the state enacted in its 2024-25 budget to deal with a multi-billion-dollar deficit. These included shifting portions of expenditures from the state general fund to the GGRF over multiple budget years, such as $900mn for the state's Clean Energy Reliability Investment Plan. The state's $10bn Climate Bond, passed by voters in November 2024, would cover the majority of new climate-related spending, including taking on $32mn of the reliability plan spending. The change in funding source would allow the state Department of Motor Vehicles to utilize $81mn in GGRF funds to cover expenditures from CARB's Mobile Source Emissions Research Program. The governor's budget would also advance his proposal from October for CARB to evaluate allowing fuel blends with 15pc ethanol (E15) in the state, as a measure to lower gas prices. CARB would receive $2.3mn from Newsom's proposal to finish the multi-tier study it began in 2018 and implement the necessary regulatory changes to allow E15 at the pump. Currently, California allows only fuel blends with up to E10 because of environmental concerns, such as the potential for increased emissions of NOx, which contributes to smog, by allowing more ethanol. With the administration predicting a modest surplus of $363mn from higher state revenues, it is unlikely that California will return to the belt tightening of the past two state budgets. But the state cautions that tension with the incoming president-elect Donald Trump, potential import tariffs and ongoing state revenue volatility should leave California on guard for any potential future fiscal pitfalls. The state's legislature's non-partisan adviser cautioned in November that government spending continues to outpace revenues, with future deficits likely. The administration is keeping an eye on the issue, which could result in changes through the governor's May budget revision, state director of finance Joe Stephenshaw said. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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