Global Climate News

The WTO circulated a panel report on January 10th in a case brought by Indonesia against the European Union concerning certain measures on palm oil and oil palm crop-based biofuels (DS593).

The US Department of Treasury and IRS released guidance on the Clean Fuels Production Credit (section 45Z), a tax credit for transportation fuels with low lifecycle greenhouse gas emissions. The guidance clarifies eligibility for entities and fuels, methods for determining lifecycle emissions using models like 45ZCF-GREET, and plans to incorporate emissions benefits from climate-smart agriculture practices.

The US Treasury Department and the IRS, in consultation with other federal agencies, issued Notice 2025-11 providing guidance on emissions rates for the clean fuel production credit under Section 45Z of the Internal Revenue Code. The notice requests public comments on emissions rates and outlines methodologies for determining emissions rates for different transportation fuels, including the use of the 45ZCF-GREET model and CORSIA.

The Pew Charitable Trusts, in collaboration with 32 international scientists, conducted a horizon scan identifying 15 significant issues shaping environmental conservation. Four key issues highlighted include: macroalgae as a sustainable source of rare earth elements; record low Antarctic sea ice impacting marine ecosystems; human impact on seabed carbon stores; and offshore wind farms altering ocean processes. The study was published in Trends in Ecology & Evolution and partially funded by The Pew Charitable Trusts.

The article discusses several factors influencing energy markets in 2025, including tighter natural gas supply, OPEC+ decisions, shifting product demand (with increased NGLs and reduced demand for gasoline and diesel in China), the role of biofuels in the energy transition, and the increasing use of short-term energy options due to market uncertainty. The expected lifting of the temporary pause on new LNG export licenses in the US is anticipated to accelerate investments in the natural gas and LNG industry. S&P Global Commodity Insights believes that increases in OPEC+ output would put downward pressure on oil prices, potentially sending WTI futures to as low as $30 per barrel. New refined products supply from the Dangote refinery in Nigeria and the potential commissioning of the Olmeca refinery in Mexico will add pressure to existing refiners.

Africa and the Middle East are emerging as key players in sustainable aviation fuel (SAF) development. In Africa, South Africa has the potential to produce 3.2-4.5 billion liters of SAF annually, exceeding its domestic demand. The Middle East, particularly the UAE, is investing heavily in SAF production, aiming for 700 million liters annually by 2031. Saudi Arabia plans a major e-SAF plant producing 350 million liters annually by 2029. Challenges include feedstock availability and high upfront costs.

Researchers at Aarhus University in Denmark have developed a new technology using microorganisms to convert CO2 from flue gases into usable products like methane or acetic acid. This bio-integrated carbon capture and utilisation (BICCU) method avoids high-heat separation processes, reducing costs and offering a more efficient way to recycle CO2 from industrial emissions.

The 2024 carbon dioxide removal (CDR) market grew 2.4 times larger than in 2023, with annual purchases increasing by 7.5 million tonnes of CO2. Biomass-based CDR dominated (82% of purchases), while Direct Air Capture declined to 11%. Two BECCS providers, Stockholm Exergi and Ørsted, captured over 70% of offtakes. Scandinavia and North America led in subsidizing CDR, with Sweden and Denmark committing $5 billion in public funding. Despite Biomass-CDR’s dominance in volume, DAC received the largest share of private investment.

The U.S. Department of Energy and the Environmental Protection Agency announced $6 million in funding for three projects to advance biofuel development. The projects will improve biofuel production, scale up production systems, and support the U.S. bioeconomy. Funded through the Inflation Reduction Act, the projects are located in three states and will support the Sustainable Aviation Fuel Grand Challenge goals.

The Canadian government invested over $11 million to advance clean fuels and alternative fuels technologies. $5.5 million was allocated through the Energy Innovation Program (EIP) to various companies, and $3.52 million was allocated for clean energy studies under the Clean Fuels Fund (CFF).

The Canadian government invested over $11 million in clean fuels and alternative fuels projects. The funding supported initiatives aimed at advancing technologies and initiatives to strengthen Canada’s clean fuels and alternative fuels sectors, including biomass collection, transportation, processing, and hydrogen production.

Fastmarkets corrected a technical issue that delayed the publication of renewable diesel price assessments for Los Angeles from October 27, 2021, to September 25, 2023. The missing assessments have been added to the database, and weekly, monthly, quarterly, and annual averages have been recalculated.

Norway's Statistics Norway (SSB) has published statistics on petroleum product and liquid biofuel sales. The data shows sales to various industries, including changes in fuel sales to road traffic (-12.8% from November 2023 to November 2024). The report also includes fuel prices and sales data by product.

British Columbia implemented the Low Carbon Fuel Standard (LCFS) on January 1, 2024, replacing the Greenhouse Gas Reduction Act. The LCFS incentivizes low-carbon fuels based on greenhouse gas reduction, driving innovation and reducing emissions. New regulations include requirements for renewable jet fuel and ground support equipment, along with updated penalty provisions and a volumetric exclusion for electricity.

The United States' renewable diesel capacity has increased by 538% since January 2021, leading to high demand for low carbon intensity feedstocks like tallow. Brazil has become a key supplier, exporting 282,791 tonnes of tallow by October 2024, mostly to the US, to meet this demand. However, competition for tallow is intense both globally and within Brazil itself.

\"The United States' renewable diesel capacity has increased by 538% since January 2021, leading to a surge in demand for low carbon intensity feedstocks like tallow. Brazil has become a key supplier, exporting 282,791 tonnes of tallow by October 2024 (94% to the US), up from 22,453 tonnes in 2021. However, competition for tallow is intensifying globally due to increased biodiesel mandates and use in other industries.\"

US and South Korean companies, Gevo and LG Chem, extended their joint development agreement to accelerate the commercialization of Gevo’s Ethanol-to-Olefins (ETO) technology for producing bio-propylene. This technology aims to create renewable replacements for petroleum-based products, contributing to decarbonization efforts. The partnership focuses on assessing existing assets for deploying the ETO technology and expanding into various end-product markets.

US-based Gevo Inc. and South Korea-based LG Chem have extended their joint development agreement for bio-propylene. This collaboration aims to accelerate the commercialization of Gevo's ethanol-to-olefins technology, contributing to the development of renewable materials and chemicals.

The article discusses the future of biofuels in the US, focusing on renewable diesel (RD) and Fatty Acid Methyl Ester (FAME) biodiesel. Uncertainty surrounds the Trump administration's approach to setting Renewable Volume Obligations (RVOs) for 2026 and the implementation of the 45Z tax credit. The key policy impact is the Renewable Fuel Standard (RFS) mandate, while other policies like the Biodiesel Tax Credit (BTC) and Low Carbon Fuel Standard (LCFS) are considered distributional.

India is setting global standards in climate action with innovative policies, renewable energy leadership and initiatives like International Solar Alliance, Mission LiFE and Global Biofuels Alliance, paving the way for a sustainable and prosperous future. Prime Minister Narendra Modi emphasized India's commitment to climate action through these initiatives.