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Republican floats repeal of 45Z clean fuel credit

  • : Biofuels, Emissions, Oil products
  • 25/01/27

A Republican lawmaker has quietly introduced a bill to repeal a key subsidy for low-carbon fuels, complicating a debate among lawmakers on what to do with clean energy incentives provided by the Inflation Reduction Act.

The bill, HR 549, introduced this month by US representative Beth Van Duyne (R-Texas) would repeal the 2022 climate law's "45Z" incentive for clean fuels, which offers increasingly generous subsidies to fuels as they produce fewer greenhouse gas emissions. While the credit is currently in effect, the legislation as written would apply retroactively, striking the credit from the tax code after 2024.

The proposal comes as Republicans prepare to pass major legislation this year through the Senate's reconciliation process, which bypasses the 100-member chamber's 60-vote requirement to advance most bills. Intent on extending tax breaks passed during President Donald Trump's first term but wary of adding to budget deficits, lawmakers are searching for ways to cut government spending.

While changes to at least some Inflation Reduction Act programs are expected, biofuels policy is seen as a less likely target for Republicans than other climate policies. And even members supportive of scrapping clean energy subsidies might be wary of repealing incentives retroactively. Still, the new bill suggests that a full repeal of 45Z could at least be part of legislative discussions this year.

The bill was referred on 16 January to the House Ways and Means Committee, of which Van Duyne is a member.

Other Republicans on the Ways and Means Committee have expressed openness to updating but not necessarily eliminating the credit, with six members opening a request for information last year on options such as limiting foreign feedstocks or encouraging more "climate-smart" farm practices. Industry groups generally supportive of 45Z might even welcome some legislative changes, particularly those frustrated by incomplete guidance on qualifying for the credit issued in the waning days of former president Joe Biden's term.

More information on lawmakers' plans could come soon, with House Republicans on Monday attending a policy retreat with Trump in Florida.

Whatever changes are proposed, Republicans' slim majorities leaves them with little room for dissent and could give farm-state lawmakers leverage to ensure some type of biofuel tax credit survives legislative negotiations.


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25/02/10

US rescinds UN climate fund pledges

US rescinds UN climate fund pledges

Washington, 10 February (Argus) — The US has canceled about $4bn in pledged money to the UN's Green Climate Fund, the latest sign a sharp policy shift under President Donald Trump. The State Department late last week said the US "has rescinded outstanding pledges to the Green Climate Fund," but did not provide any further details. The US under former presidents Joe Biden and Barack Obama had pledged about $6bn combined to the GCF, with the most recent commitment announced at the Cop 28 climate talks in Dubai. But the two administrations were able to deliver only $2bn of the funding. The cancellation of the GCF pledges is just the latest step by Trump to quickly reverse course for US climate and clean energy policies. Among his first acts after taking office last month Trump ordered the US to exit the Paris climate agreement and to pause spending on renewable energy projects. In addition, secretary of state Marco Rubio said the US would stop engaging in climate diplomacy. The GCF finances projects in developing and emerging countries with a focus on mitigation, adaptation and resilience efforts, such as climate-friendly agricultural methods, reforestation or coastal protection. It operates under the UN Framework Convention on Climate Change and was originally capitalized with $10.3bn in 2015. In two replenishment rounds since then, it has gathered more than $20bn in additional pledges. The fund has to date approved nearly $16bn for project in more than 130 countries and expects to approve another $3bn-worth this year. The fund said it "remains determined" to help developing countries achieve the highest level of ambition possible. "If pledges are not fully realized, our ability to support the climate ambitions of developing countries will be constrained," the GCF said. Finance for developing countries has been a major issue at UN climate talks. At last year's Cop 29 in Baku, Azerbaijan, countries agreed to a "new collective quantified goal" of "at least" $300bn/yr for developing countries by 2035, with developing countries "taking the lead." The goal is meant to build on the $100bn/yr that developed countries agreed to deliver over 2020-25. The finance will come from "a wide variety of sources, public and private, bilateral and multilateral, including alternative sources". By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico inflation slows to 4-year low in January


25/02/10
25/02/10

Mexico inflation slows to 4-year low in January

Mexico City, 10 February (Argus) — Mexico's consumer price index (CPI) eased to an annual 3.59pc January, the lowest in four years, as deceleration in agriculture prices offset faster inflation in energy and consumer goods prices. This marks the lowest annual inflation since January 2021 and a significant slowdown from July's annual peak of 5.57pc, which was driven by weather-impacted food prices. The result, reported by statistics agency Inegi on 7 January, was slightly below than the 3.63pc median estimate from 35 analysts polled in Citi Research's 5 February survey. It compares with the 4.21pc headline inflation in December, marking five months of declines in the past six months. Mexican core inflation, which excluded volatile energy and food, sped slightly to 3.66pc in January from 3.65pc in December, while non-core inflation decelerated to 3.34pc from 5.95pc the previous month. Movement, in the non-core, said Banorte, was mostly explained by a positive basis of comparison, and "will reverse as soon as the second half of February to push the headline metric above 4pc," said Banorte. Core inflation accelerated slightly to 3.66pc in January from 3.65pc in December, marking the second uptick after 22 consecutive months of deceleration. Services inflation slowed to 4.69pc from 4.94pc, while consumer goods inflation ticked up to 2.74 from 2.4pc. Non-core inflation slowed sharply to 3.34pc from 6.57pc in December. This was largely due to base effects, Banorte said, adding these base effects are likely to fade this month to speed headline annual inflation back above 4pc. The base effects most clearly impacted fruit and vegetable price inflation, contracting 7.73pc in January from 6.65pc annual inflation the previous month. Moving forward, agriculture prices are highly exposed to the coming hot, dry season in Mexico, with the La Nina climate phenomenon, adding a layer of uncertainty. Meanwhile, energy inflation accelerated to 6.34pc in January from 5.73pc the previous month, driven by higher LPG prices. Electricity inflation, meanwhile, sped to 4.32pc in January from 2.65pc in December, while inflation slowed to 0.02pc in January for domestic natural gas prices from 5.67pc in December. Monetary policy The January inflation report followed the central bank's decision Thursday to reduce its target interest rate to 9.50pc from 10pc. This was the bank's sixth rate cut since March 2024, winding down from 11.25pc. The 4-1 decision marked an acceleration in the current rate cycle, opting for a half-point reduction rather than the previous five 25-basis-point cuts. In board comments with the announcement, the bank cited "significant progress in resolving the inflationary episode derived from the global shocks" in 2021 and 2022. These triggered rate hikes from 4pc in June 2021 to 11.25pc in April 2022, the target rate's historic high. Taking into account the "country's weak economic activity" and this progress in reducing inflation, the board said it would "consider adjusting [the target] by similar magnitudes" at upcoming meetings. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

German heating oil demand surges as prices fall


25/02/10
25/02/10

German heating oil demand surges as prices fall

Hamburg, 10 February (Argus) — German consumers stocked up on heating oil in the first week of February as prices fell. Traded heating oil volumes reported to Argus jumped by almost a third on the week, and prices fell by almost €2/100l on average nationwide between 3 February and 6 February. Many consumers had held off from buying in the week before to see if prices would drop, traders said. Consumers were further spurred on by a drop in temperatures after a relatively mild January. Privately owned heating oil tanks nationwide reached their lowest level since the beginning of July on 6 February at just over 52pc, Argus MDX data show. Industrial diesel tanks were lower in January than in the previous five years. Diesel demand is still low, traders said. In the first six weeks of 2025, diesel volumes reported to Argus dropped marginally and imports have remained largely unprofitable. Production cuts in southern Germany have yet to lead to any significant product shortages, with domestic supply sufficient to cover demand. Both the Bayernoil consortium's 215,000 b/d Vohburg-Neustadt refinery in Bavaria and the Miro joint venture's 310,000 b/d Karlsruhe refinery continue to produce at reduced levels. They shut down portions of their production within days of each other because of technical problems. Production at Karlsruhe is not expected to return to normal levels until the beginning of March, a departure from the original schedule which saw production increase again in mid-February. Overall production is due to remain reduced in March even with the increase in Karlsruhe, however. The 125,000 b/d Vohburg site of the Vohburg-Neustadt refinery will be taken offline entirely for maintenance works, along with several units in the 90,000 b/d Neustadt site, which has yet to resume production after a fire on 17 January. OMV plans to take its 77,000 b/d Burghausen refinery in Bavaria offline for maintenance works at the end of March. The first of two permanent production cuts scheduled for 2025 will take place in March, when Shell will cease crude distillation at the Wesseling site of its 334,000 b/d Rhineland refinery complex. The second permanent cut is due for the end of the year at BP's 258,000 b/d Gelsenkirchen refinery in west Germany. BP said on 6 February it is seeking a buyer for the refinery, and said it will go ahead with the planned reduction in crude capacity nonetheless. By Natalie Müller Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Noboa's tight lead triggers runoff in Ecuador


25/02/10
25/02/10

Noboa's tight lead triggers runoff in Ecuador

Quito, 10 February (Argus) — Ecuador will hold a second-round presidential election on 13 April after incumbent President Daniel Noboa had a closer-than-expected lead over his main challenger in Sunday's election, the electoral authority said. Noboa had 44.5pc of votes as of 11:30pm ET on Sunday, closely followed by Luisa Gonzalez, the candidate for the Citizens' Revolution party with 44.1pc, with 80pc of votes counted, the national electoral council (CNE) said. Ecuador's presidential election goes to a second round if the winning candidate does not have more than 50pc of votes or 40pc of votes with a 10-percentage point lead over the runner-up. Gonzalez' party was founded by exiled former president Rafael Correa, a close friend and supporter of Venezuelan president Nicolas Maduro. Correa guided taking on crude-backed loans from China during his term and oversaw a rewrite of the constitution, allowing him to serve for 10 years. Gonzalez in brief comments said she was optimistic about winning the second round, while Noboa did not speak publicly. This is the first time since 2006 that the candidate with Correa's party did not win at least the initial round of a presidential race. Pachacutik candidate Leonidas Iza was in third place with 4.8pc of votes. His party is the political arm of the Confederation of Indigenous Nationalities (Conaie) that led an 18-day national strike in June 2022, cutting Ecuador's crude production by 17pc that month. The remaining 13 candidates obtained about 6.6pc of the valid votes. About 13.7mn Ecuadorians were required to appear at the polls. Voting is mandatory in the South American country, but only around 85pc actually voted. Ecuadorians also voted for 151 members of the national assembly. Gonazalez' party and Noboa's National Democratic Action party are forecast to win the biggest shares, but officials results will not be known for several days. By Alberto Araujo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump planning rollout of 'reciprocal' tariffs


25/02/07
25/02/07

Trump planning rollout of 'reciprocal' tariffs

Washington, 7 February (Argus) — President Donald Trump is considering announcing "mostly reciprocal tariffs" on an undisclosed number of countries early next week, in a possible shift from a campaign plan to impose universal tariffs of 10-20pc against all imports to the US. Trump did not provide specifics on the idea, but said he would probably have a meeting on 10 or 11 February before making an announcement. The potential rollout of the reciprocal tariffs appears likely to take place after China's planned 10 February date to start collecting a 10pc tariff on crude, coal and LNG from the US that Beijing imposed in response to a 10pc blanket tariff that Trump has placed on Chinese imports. "I think that's the only fair way to do it," Trump said of his plan to "probably" pursue reciprocal tariffs. "That way, nobody's hurt. They charge us, we charge them. It's the same thing. And I seem to be going in that line, as opposed to a flat fee tariff." Trump has said he views tariffs — which he says is his "favorite word" — as a virtually cost-free way to raise revenue that will cut the US trade deficit and boost domestic manufacturing, without raising prices for goods in the US. But earlier this week, Trump delayed his plan to place an across-the-board 25pc tariff on Canada and Mexico just hours before it was set to take effect, as stock markets began to plunge on the threat of the start of a damaging trade war between the US and its two largest trading partners. The vast majority of economists say across-the-board tariffs are an inefficient way of raising revenue, with costs that would fall the hardest on low-income and middle-income US consumers already reeling from years of inflation. US Senate minority leader Chuck Schumer (D-New York) on 2 February said kicking off a tariff war with Canada and Mexico "makes 100pc no sense" and would raise costs for US consumers. Trump discussed his reciprocal tariff idea today during a press conference with Japan's prime minister Shigeru Ishiba. Trump said he wants to "get rid of" the US' trade deficit with Japan he estimates is $100bn/yr, primarily by selling the country US oil, LNG and ethanol. Trump said he also spoke with Ishiba about efforts related to the "pipeline in Alaska", an apparent reference to the proposed 20mn t/yr Alaska LNG project, which is expected to cost more than $40bn and would require building a natural gas pipeline across Alaska. Ishiba said it was "wonderful" that Trump had lifted a temporary pause on LNG licensing on his first day in office, and said Japan was interested in purchasing US LNG, ethanol, ammonia and other resources as a way to cut down on the US trade deficit with Japan. "If we are able to buy those at a stable and reasonable price, I think it would be a wonderful situation," Ishiba said through a translator. Japan is keen to increase its overall investment in the US to $1 trillion, Ishiba said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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