Platts proposes to specify maximum carbon intensity instead of greenhouse gas saving equivalent in European ETBE

Following a period of consultation, S&P Global Platts is proposing to specify a maximum carbon intensity, or CI, of 41.90 grams of carbon dioxide equivalent per megajoule of energy for its ETBE FOB AR assessment, effective Jan. 4, 2021.

A maximum CI of 41.90gCO2e/MJ is equivalent to the minimum 50% GHG savings currently reflected in Platts ETBE assessment, based on a fossil fuel comparator of 83.8g CO2e/MJ under the European Commission's Renewable Energy Directive, or RED, I framework.

Platts would no longer specify a greenhouse gas, or GHG, saving percentage equivalent under this proposal.

Platts extended its consultation into GHG savings and fuel quality in European ETBE on Oct. 12, in the following subscriber note: https://bit.ly/35A9XgJ

Platts will continue to review feedback received in its consultation on fuel quality.

Platts will be monitoring the implementation of RED II next year and what this will mean for the sustainability criteria for ETBE. Market feedback indicated a need for clarity in the ETBE specification ahead of the transition from RED I to RED II which will see the fossil fuel comparator change from 83.8gCO2e/MJ to 94.0gCO2e/MJ. Platts will seek to align its approach with the prevailing comparator used by the market. A maximum CI of 41.90g CO2e/MJ would imply GHG savings of 55.4%, using the fossil fuel comparator of 94.0g CO2e/MJ stated in RED II.

Platts invites feedback to petchems@spglobal.com and pricegroup@spglobal.com by Dec. 1, 2020.

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