Platts specifies maximum carbon intensity instead of greenhouse gas saving equivalent in European ETBE

Following market consultation, S&P Global Platts will amend its European ETBE methodology 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 from 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 will no longer specify a greenhouse gas, or GHG, saving percentage equivalent following this decision.

Platts will be monitoring the implementation of RED II in 2021 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 extended its consultation into GHG savings and fuel quality in European ETBE on Oct. 12, in the following subscriber note: https://bit.ly/35A9XgJ

This was followed by a formal proposal on Nov. 18, in the following subscriber note: https://bit.ly/39uTxZj

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

The changes will affect the following assessments:

Platts ETBE FOB AR spot

Platts ETBE spread FOB AR

Platts ETBE assessments appear on Platts Biofuels Alert pages 1420, 1010, 1011, and 1012, in the Biofuelscan and Fuel Ethanol Report publications, and in Platts Market Data under the following codes: AASLQ00, AASLQ02, AASLQ01, AASLQ04, AASLQ03, AASLQ13.

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