ET Highlights: EU ETS under strain, Middle East conflict affects commodities, China to accelerate transition

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INFOGRAPHIC: Middle East war jolts commodities markets

Prices for some of the world's most vital commodities leapt in the week starting Feb. 23, on fears about supply disruptions as a result of the conflict in the Middle East. Assessments published by Platts, part of S&P Global Energy, show that the largest price jumps were observed in the shipping, jet, and gas markets.

Asian biofuels prices rise as Middle East tensions stoke supply concerns

Asian biofuels prices rose due to concerns about supply disruption stemming from geopolitical tensions in the Middle East March 2, and even though market participants said it was too early to observe an immediate impact, increased freight costs and delivery delays could be anticipated, they said. Market participants adopted a wait-and-see approach, with sellers anticipating that buyers would accept higher prices amid the supply concerns and increased freight costs.

Brazilian small hydro plants expect a surge of new investments

The Brazilian small hydroelectric sector is preparing for higher investments over the next few years, after several years of stagnation, as the government has resumed energy auctions focused on hydropower amid excess supply from intermittent wind and solar generation.

S&P Global Energy Core

China aims to boost renewables transition, energy security in 2026 plan

China aims to accelerate its renewable energy transition and reinforce national energy security in 2026 and throughout its 15th Five-Year Plan period (2026-2030), according to the Government Work Report delivered by Premier Li Qiang at the National People's Congress in Beijing. The report has set an ambitious target of reducing CO2 emissions per unit of GDP by 3.8% in 2026 and outlines a cumulative 17% reduction in CO2 intensity by 2030, aligning with the country's long-term climate commitments.

Middle East conflict underscores need for homegrown renewables: UK's Miliband

UK energy secretary Ed Miliband said the war in the Middle East highlights the need for the UK to accelerate its shift toward domestically produced renewable power, arguing the country's exposure to global fossil fuel markets poses ongoing risks to energy security. Miliband said he has been in contact with energy ministers from Qatar and Saudi Arabia, the International Energy Agency and key industry figures as the government monitors oil and natural gas markets. The consultations come as the UK seeks to reduce its reliance on hydrocarbon imports amid geopolitical volatility that has historically driven up energy costs for British consumers.

South Korea’s Lotte Fine Chemical to use renewable ammonia for bunkering, power

South Korea’s Lotte Fine Chemical plans to use renewable ammonia for bunkering and power generation and is working to build a supporting supply chain, the company said late March 5, following its recent import of renewable ammonia from China’s Envision Energy. The company, that said cross-border trade in renewable ammonia marks a significant milestone for the emerging global renewable ammonia value chain, is also looking at imported renewable ammonia as a renewable hydrogen vector.