Platts proposes to make averaging of GHG savings standard in T2 ethanol FOB Rotterdam assessment

Platts, part of S&P Global Commodity Insights, is proposing to change the methodology for its T2 Ethanol FOB Rotterdam assessment (AAYDT00) to reflect averaging of greenhouse gas savings across Proof of Sustainability certificates as standard practice, effective April 7.

The proposal follows market feedback indicating that averaging GHG levels across PoS is common practice in the Amsterdam-Rotterdam-Antwerp market due to co-mingling and mass balancing creating a mixed pool of ethanol product and sustainability certificates.

Currently, Platts requires all PoS provided by a seller to fall below the maximum carbon intensity of 33.52g CO2e (equivalent to a minimum 64.3% GHG savings, as calculated in the Renewable Energy Directive (RED II)) in transactions published through the Platts Market on Close assessment process.

Individual PoS certificates should not fall below 64.3% GHG savings for a minimum 64.3% GHG ethanol parcel, unless mutually agreed otherwise: https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/042321-platts-clarifies-proof-of-sustainability-certification-in-the-platts-t2-ethanol-assessment .

The proposed change would permit transfer of PoS documents with a carbon intensity above 33.52g, or equivalent to below 64.3% GHG savings, as standard in the assessment, provided that the weighted average of GHG savings across the transferred PoS is at least equal to 64.3%.

All proof of sustainability documents would need to meet a maximum carbon intensity of 47g CO2e, equivalent 50% GHG saving, in line with RED II requirements.

Please send any comments or feedback to mrts_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com by March 5.

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.