Subscriber note: Platts proposes change to EMEA T2 ethanol sustainability clause

The following ethanol sustainability subscriber note supersedes the note published on December 10. In light of recent development in the Northwest European biofuels market and following industry feedback in response to the Platts proposal published on December 10, Platts is issuing a revised proposal to only reflect in its European fuel ethanol Market On Close price assessment process, ethanol that holds proof of sustainability from an EU-wide certification system, also known in the industry as "voluntary scheme." There are currently 13 voluntary schemes approved for biofuels certification in Europe, according to the European Commission. This change would impact Platts' T2 FOB Rotterdam and Platts? T2 German spec Rotterdam undenatured fuel ethanol quotes. Operational changes announced December 7 by sustainability system ISCC have limited the merchantability of the T2 FOB Rotterdam German specification ethanol quality, which was previously seen as a commodity with EU-wide acceptance. To preserve the validity of its assessments and to maintain the T2 FOB Rotterdam German spec merchantability, Platts is proposing to no longer accept proof of sustainability from German-approved national systems in its Market On Close pricing process. Platts intends to implement these changes on February 1, 2013, after reviewing further feedback and comments from the industry, and subject to no further legislative changes to the sustainability criteria. Please provide feedback to petchems@platts.com and pricegroup@platts.com by January 15, 2013.