Platts opens consultation on raising T2 Ethanol GHG savings threshold from January 2026

Platts, part of S&P Global Commodity Insights, is opening a consultation on raising the minimum GHG savings reflected in Ethanol T2 FOB Rotterdam barge assessments from Jan. 2, 2026.

In line with the Renewable Energy Directive III (2030), more EU member states are moving progressively to emissions-based targets, and higher GHG savings are becoming more typical in ethanol production. Simultaneously, initiatives such as the Union Database for Biofuels (UDB) are intended to improve the traceability of liquid fuels and their sustainability attributes.

At present, Platts T2 ethanol FOB Rotterdam barge assessment reflects product meeting a maximum carbon intensity (CI) of 33.52g of carbon dioxide equivalent (CO2e) per megajoule (MJ). This is equivalent to a minimum GHG saving of 60% based on a fossil fuel comparator of 83,8g CO2e/MJ under the European Commission's Renewable Energy Directive (RED) I framework, or GHG savings of 64.3% based on the RED II fossil fuel comparator of 94g CO2e/MJ.

Platts understands that legislation in the Netherlands will move to employ emissions-based targets from January 2026 and that similar mandates are also under consideration in France. Platts also recognizes that Germany, Sweden and Austria already use an emissions-based structure, and that such targets typically necessitate blenders buying product with higher emissions savings in order to meet targets.

Furthermore, average GHG savings from EU ethanol production, which accounts for around 75% of the region's consumption, is already averaging significantly higher savings than the minimum GHG savings of the T2 ethanol FOB Rotterdam assessment.

As such, Platts is considering raising the GHG savings threshold reflected in its T2 ethanol FOB Rotterdam barge assessment (AAYDT00), in order to align with the higher savings necessitated by emissions-based systems.

Platts seeks feedback on:

• A specific GHG savings minimum that would align with the ambitions of the EU ethanol market in the coming years, by Oct. 31.
• The January 2026 implementation date of such a change.
• How increasing the minimum GHG requirement will impact imported volumes to the region.
• How best to reflect EU UDB (Union Database for Biofuels) compliance in its methodology.

The consultation aims to inform a future proposal, which would provide an additional window for feedback, before any proposed changes to the assessment methodology would be confirmed.

Full details on Platts' T2 Ethanol assessment can be found in the Global Biofuels specifications guide available here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Global_Biofuels.pdf

Please send any comments or feedback to mrts_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com by Oct. 31, 2024

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 upon request.