Platts launches GHG savings specification changes for first generation biodiesel assessments

Following a formal public consultation, proposal, review and decision, S&P Global Platts has changed the specification of greenhouse gas (GHG) savings for Platts first generation biodiesel assessments in line with a trend toward lower carbon emissions in the European biofuels market, effective Jan. 4, 2022.

GHG savings in the EU are measured as an absolute level of carbon intensity (CI), or as a percentage GHG saving, compared with the fossil fuel comparator.

From Jan. 4, the Platts RME, FAME 0, PME, SME and FAME-10 FOB ARA assessments reflect biodiesel meeting a maximum CI of 33.52g of carbon dioxide equivalent per megajoule (CO2e/MJ), aligned with Platts Ethanol T2 FOB Rotterdam assessment. This is equivalent to a minimum GHG saving of 64.3% based on a fossil fuel comparator of 94g CO2e/MJ outlined in the European Commission's Renewable Energy Directive (RED) II framework, or 60% based on the RED I fossil fuel comparator of 83.8g CO2e/MJ. Platts first generation biodiesel assessments previously reflected a minimum GHG saving of 50% under RED I, equivalent to a maximum CI of 41.90g CO2e/MJ. The UCOME premium remains at a maximum CI of 10.89 CO2e/MJ, equivalent to a minimum GHG saving of 88.4% under RED II, or 87% under RED I.

The Platts public consultation subscriber note on European biodiesel methodology can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/030321-platts-extends-feedback-period-on-european-biodiesel-methodology

The Platts public proposal subscriber note on European biodiesel methodology can be found here: Platts proposes increase in minimum GHG savings in Biodiesel RME, FAME 0, PME, SME and FAME -10 FOB ARA assessments | S&P Global Platts (spglobal.com) Platts biodiesel specifications can be found on pages 7-8 of the methodology document: https://www.spglobal.com/platts/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_biofuels.pdf

The Platts public decision subscriber note on European biodiesel methodology can be found here: Platts changes specification of GHG savings for first generation biodiesel assessments https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/082421-platts-changes-specification-of-ghg-savings-for-first-generation-biodiesel-assessments

Please send any further feedback, comments or questions to europe_ags@spglobal.com and pricegroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available to the public upon request.