Platts will not increase T2 ethanol min GHG level in Jan 2026

Platts, part of S&P Global Commodity Insights, confirms it will not raise the T2 Ethanol GHG savings threshold in January 2026.

Based on market feedback to a consultation initiated Aug. 27, Platts will not implement a change to the minimum GHG savings level reflected in the Ethanol T2 FOB Rotterdam barge assessment (AYDT00) from January 2026.

Market feedback indicated that more clarity was needed on how individual EU member states will implement the Renewable Energy Directive III (2023).

Platts is extending the consultation period to the end of May and seeking additional feedback on an increase of the minimum GHG savings reflected in its T2 Ethanol FOB Rotterdam barge assessments, including a possible implementation date.

Initial feedback was broadly supportive of an increase to the minimum GHG savings level to be reflected in the T2 Ethanol assessment from January 2027 to reflect the evolving regulatory environment for higher savings.

At present, the Platts T2 Ethanol FOB Rotterdam barge assessment reflects product meeting a maximum carbon intensity (CI) of 33.52 g 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 83.8 g 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 94 g CO2e/MJ.

In line with RED III, more EU member states are moving to emissions-based targets, and higher GHG savings are becoming more typical in ethanol production. Member states, however, need to individually ratify RED III, and there is yet to be clarity on how this will be implemented in key demand countries such as France.

As a result, Platts has decided to delay the anticipated increase in the minimum GHG level until at least 2027. Platts will communicate a proposed increase to the minimum GHG level, and invite further feedback, through additional subscriber notes, as the market evolves more clearly.

Full details on the 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

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