Platts will not amend T2 Ethanol FOB Rotterdam assessment methodology to reflect averaging of GHG savings as standard

Platts, part of S&P Global Commodity Insights, will not 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.

As such, Platts methodology will continue to require 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, as stipulated under the current methodology.

Platts originally proposed to change its assessment methodology Feb. 21, with a proposed implementation date of April 7, in a subscriber note.

Based on market feedback, Platts has decided to forgo implementing the proposed change April 7. Platts understands that averaging GHG levels across PoS is common practice in the Amsterdam-Rotterdam-Antwerp area. However, additional feedback highlighted concerns over the fungibility of PoS with relatively low levels.

Platts continues to invite feedback relating to the averaging of PoS certificates in relation to its consultation on increasing the GHG savings threshold reflected in the Ethanol T2 FOB Rotterdam barge assessment. Platts is seeking feedback on this proposal until May 31.

Please send any comments or feedback to mrts_biofuelsandfeedstocks@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.