EU proposes support package for chemicals sector

Spanish Market: Chemicals, Emissions, Fertilizers, LPG
15/07/25

The measure aims to address high energy costs, global competition and weak demand, writes Dafydd ab Iago

The European Commission on 8 July proposed measures to support the EU chemicals sector, aiming to address high energy costs, global competition and weak demand. The plan includes extending emissions trading system (ETS) compensation to more producers and simplifying fertilizer registration rules.

The commission says the simplification measures could save the sector €363mn/yr ($423mn/yr). The proposals are part of a broader plan to boost competitiveness and secure supply chains. A new Critical Chemicals Alliance will identify key production sites needing policy support, targeting trade issues such as supply chain dependencies and market distortions. The commission also pledged to apply trade defence measures more quickly and expand chemical import monitoring.

Although the commission stopped short of proposing a Critical Chemicals Act — which would legally define specific chemicals for support — it named steam crackers, ammonia, chlorine and methanol as "essential" to the EU economy. The alliance will aim to align investment and co-ordinate support, including through the bloc's Important Projects of Common European Interest programme. The commission also defined low-carbon hydrogen and plans to allow more state aid for electricity-intensive chemical producers by year-end. It encouraged the use of carbon capture, biomass, waste and renewables.

The plan uses "all levers" to put the sector back on a growth track, with measures to retain steam crackers and other key assets in Europe, EU industry commissioner Stephane Sejourne says. He also highlighted efforts to secure domestic demand for "clean and made-in-Europe chemicals".

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18/07/25

Brazil launches climate mitigation strategy plan

Sao Paulo, 18 July (Argus) — Brazil's environment ministry issued a plan to reduce greenhouse gas emissions (GHG) through seven guidelines and mitigation targets that will be measured every three years as of 2024. The strategy is part of a larger project known as Plano Clima that seeks to promote energy efficiency, low-carbon agriculture and cattle raising practices, green hydrogen supply and wider use of renewable fuels. Each of the seven sectors included in the national strategy for mitigation plan issued on Friday will follow specific guidelines with targets, action plans, cost projections, financing pathways, monitoring and assessment. Sectors include agriculture and cattle raising, nature conservation, cities and urban mobility, energy and mining, industry, solid waste and effluents, as well as transport, all aligned with another strategy plan to employ climate adaptation. Mitigation action plans will set targets from 2024-27, 2028-31 and 2032-35, the ministry said. All documents will be available for public consultation from 28 July-18 August. The country's emissions come mostly from deforestation and agribusiness activities, which are ahead of burning fossil fuels in the transport and industry sectors, according to the environment ministry. Early in the week, the US Trade Representative (USTR) launched an investigation to determine if Brazil's illegal deforestation undermines the competitiveness of US timber and agricultural industries . National deforestation fell by 32pc in 2024 from a year before, according to space institute Inpe. But Brazil also scorched an area greater than the size of Italy in 2024 , according to environmental network MapBiomas. Brazil has set a target of ceasing deforestation, both legal and illegal, by 2030, as well as to reach net zero emissions by 2050. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil's Bolsonaro put under police surveillance

18/07/25

Brazil's Bolsonaro put under police surveillance

Rio de Janeiro, 18 July (Argus) — Former Brazilian president Jair Bolsonaro has been fitted with an ankle monitor after police raided his home in the capital Brasilia, the latest in a series of court-ordered measures that point to a worsening of his legal situation that could deepen tensions between Brazil and the US. Bolsonaro — who is on trial before the supreme court for an attempted coup — has been ordered to remain at home during certain hours and has been banned from social media and from communicating with foreign diplomats and other defendants. The new measures imposed by the court come in the wake of US President Donald Trump's threat to impose 50pc tariffs on imports from Brazil starting 1 August. Trump said the threat is linked to Bolsonaro's prosecution, calling the trial a "witch hunt". In a 47-page court filing, justice Alexandre de Moraes argued that Bolsonaro and his son Eduardo, a federal congressman, sought help from the US government to pressure Brazilian authorities to interfere in the legal process, calling it a "blatant assault on national sovereignty." Eduardo is in the US and has met with Trump several times to lobby in favor of his father. In response to the latest measure, Eduardo called Moraes a "political gangster in robes" who is "trying to criminalize Trump and the US government". In a televised address on Thursday, President Luiz Inacio Lula da Silva called the tariff threat "unacceptable blackmail in the form of threats to Brazilian institutions". His government has set up an inter-ministerial committee to seek a solution to the impending tariffs . Speaking to journalists on Friday morning, Bolsonaro offered to appeal to Trump directly to resolve the issue. He denied attempting a coup or having plans to flee the country. His passport was seized by authorities in February 2024. By Constance Malleret Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US probes Brazil deforestation as trade issue

16/07/25

US probes Brazil deforestation as trade issue

Sao Paulo, 16 July (Argus) — The US Trade Representative (USTR) launched an investigation into illegal deforestation in Brazil to determine if it undermines the competitiveness of US timber and agricultural industries. The investigation will "seek to determine whether [the Brazilian government's] acts, policies and practices" related to illegal deforestation "are unreasonable or discriminatory and burden or restrict US commerce," namely US timber and agricultural producers. Brazil is a major producer of timber and agricultural goods, but much of that growth has been through widespread environmental destruction, including in the Amazon rainforest, and coversion of that land to grow crops. Brazil has taken measures to combat the deforestation, however, leading to a 32pc decline in deforestation in 2024 from a year prior, according to its space institute Inpe. It also reduced wildfires in the first half of 2025 by 66pc from the same period a year before , according to its environment ministry. The country has set a goal of eliminating deforestation by 2030. Brazil's federal government has also worked to strengthen funds to combat deforestation and climate change, such as the Amazon fund and the Climate fund . The latter was set up in 2008 but suspended in 2019 during the presidency of Jair Bolsonaro, a climate skeptic. The current administration has since reinstated it. Brazil's current federal administration has also put environmental issues at the forefront of its policies , seeking to become a leader in that area. This includes highlighting the issues during its hosting of the G20 summit last year , the Brics summit earlier this month, and hosting the UN Cop 30 climate summit in November. But some government initiatives — such as the push to drill the environmentally-sensitive equatorial margin — have drawn backlash from climate groups . An environmental licensing bill currently held up in the lower house is also receiving criticism from environmentalists and the environment ministry because it exempts some sectors, such as forms of agriculture that opening large areas for crops or cattle, from needing to obtain environmental licenses. Climate agency Observatorio do Clima called it "the largest legal setback since the creation of Brazil's constitution." Deforestation will be one of the country's flagship issues during the Cop 30 summit, including promoting the Tropical Forest Forever Facility (TFFF) initiative, a fund to preserve global tropical forests. USTR's investigation comes a week after US president Donald Trump threatened to impose a 50pc tariff on imports from Brazil as of 1 August, citing both unfair practices by Brazil and the ongoing trial of Bolsonaro , which he called "a witch hunt". The investigation will also probe the access of Brazilian ethanol into the US market , digital trade and electronic payment services, anti-corruption interference and intellectual property protection. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New tariff threat could disrupt Mexico GDP outlook

16/07/25

New tariff threat could disrupt Mexico GDP outlook

Mexico City, 16 July (Argus) — Mexico's association of finance executives IMEF held its 2025 GDP growth forecast steady at 0.1pc in its July survey but warned the outlook could deteriorate if the US raises tariffs to 30pc. The survey of 43 analysts maintained projections for year-end inflation at 4pc and for the central bank's benchmark interest rate to fall from 8pc to 7.5pc by the end of 2025. The sharpest variation came in formal employment, after Mexico's social security administration IMSS reported a net loss of 139,444 formal jobs in the second quarter. IMEF cut its 2025 job creation forecast to 160,000 from 190,000 in June — the seventh and largest downgrade this year. Job losses increased in April, May and June, "a situation not seen since the pandemic in 2020," IMEF said. "If this trend is not reversed, the net number of formal jobs could fall to zero by year-end." "It is still too early to call it a recession, but the rise in job losses is worrying," said Victor Herrera, head of economic studies at IMEF. "The next risk we face is in auto plants. Some halted production after the 25pc US tariff was imposed in April. They did not lay off workers right away — they sent them home with half pay. But if this is not resolved in the next 60-90 days, layoffs will follow." The July survey was conducted before US president Donald Trump said on 12 July he would raise tariffs on Mexican goods from 25pc to 30pc starting 1 August. "What we have seen in the past is that when the deadline comes, the tariffs are postponed or canceled," Herrera said. "Hopefully, that happens again. If not, you can expect GDP forecasts to shift into contraction territory." While the full impact would vary by sector, Herrera said the effective average tariff rate would rise from 4pc to 15pc, with most exports either exempt or subject to reduced rates under regional content rules. But 8–10pc of auto exports would face the full 30pc duty. IMEF expects the peso to end 2025 at Ps20.1/$1, stronger than the Ps20.45/$1 estimate in June. But the group warned that rising Japanese rates — which influence currency carry trades — and falling Mexican rates could put renewed pressure on the peso once the dollar rebounds. For 2026, the GDP growth forecast dropped to 1.3pc from 1.5pc, while the peso is seen ending that year at Ps20.75/$1, slightly stronger than the previous Ps20.90/$1 forecast. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU states to reach stance on 2040 climate goal in Sep

16/07/25

EU states to reach stance on 2040 climate goal in Sep

Brussels, 16 July (Argus) — EU member states' position on the bloc's 2040 climate target should be finalised on 18 September, after a "very tight process", Danish climate and energy minister Lars Aagaard said today. "There are also some in this room who think that the answer to competitiveness challenges is to abandon climate targets. That is not what I hear a majority of European countries want," Aagaard told the European Parliament's energy committee today. Aagaard is overseeing the process, as Denmark holds the six-month rotating EU council presidency until the end of the year. The European Commission earlier this month formally proposed a 2040 goal of a 90pc cut in greenhouse gas (GHG) emissions, from 1990 levels. The bloc will then use the 2040 target to submit a climate plan, known as a nationally determined contribution (NDC), for a timeframe to 2035, to UN climate body the UNFCCC. Aargaard will need parliament's approval of the update — the 2040 target — to the bloc's 2021 climate law. But Czech ECR conservative Alexander Vondra referred to voices that see the commission's proposed 90pc net GHG cut as "too draconian". Vondra also called for more flexibility in the use of international carbon credits under Article 6 of the Paris Agreement. The commission proposes limiting their use for domestic reductions to only 3pc of 1990 GHG emissions. "This 3pc is good for a couple of multinationals, some richer states. Poor states, small companies have no chance. Are you willing to compromise, to give more flexibility?" Vondra asked. Former environment committee chair Pascal Canfin called for robust "flexibilities" when using international carbon credits. "Robust means that it cannot be within the ETS. It has to be negotiated by the commission itself and not having 27 [member state] parallel negotiations," Canfin, a French liberal Renew member, said. Aagaard did not expand beyond previous statements about "general support" among member states on Article 6 credits, and the need to maintain integrity and credibility. He added that EU states have questioned the "how" and not the "why" of the flexibility mechanism. "And then, of course, there is a discussion between the member states in relation to the volume," Aagaard said. Spanish Patriots member Hermann Tertsch said his group "will also monitor parliament's timetable, raising concerns about possible deliberate delays, as the group explicitly expressed resistance to the bill." The far-right group opposes a 90pc reduction target for 2040 but has been allocated the legal file. Any delay to the 2040 target would raise questions about the timing of the bloc's NDC submission that itself is to be derived from the 2040 target. The NDC has to be submitted ahead of the UN Cop 30 climate conference in Belem, Brazil, in November. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU proposes support package for chemicals sector

Related news posts

Brazil launches climate mitigation strategy plan

Brazil launches climate mitigation strategy plan

Brazil's Bolsonaro put under police surveillance

Brazil's Bolsonaro put under police surveillance

US probes Brazil deforestation as trade issue

US probes Brazil deforestation as trade issue

New tariff threat could disrupt Mexico GDP outlook

New tariff threat could disrupt Mexico GDP outlook

EU states to reach stance on 2040 climate goal in Sep

EU states to reach stance on 2040 climate goal in Sep

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