Type:In the spotlight
Language:English
Published:2024-12-19
Last updated:2024-12-19
Views:61
Highlights
In October, SGS INSPIRE published a report on the EU Emission Trading System and its implications for the transport sector.
In November, SGS INSPIRE published a global report on the Overview of fuel quality 2024 and changes expected in 2025. This report summarizes the main developments on fuel quality in 2024 and discusses anticipated regulatory and market developments in 2025.
SGS INSPIRE also attended the 3rd ICWS Workshop on U.S. Clean Mobility in Washigton DC, highlighting initiatives for achieving clean transportation by 2035. The event focused on the Bipartisan Infrastructure Law's funding, collaboration between private and public sectors, and private capital's role. SGS INSPIRE presented e-fuels as near carbon-neutral, transitional solutions for hard-to-electrify sectors, bridging fossil fuels and full electrification in clean mobility.
Upcoming
On December 9-10, 2024, SGS INSPIRE will conduct a public webinar on Global Transportation Fuel Markets 2024/2025 for an end of the year recap of the transportation fuel market developments in 2024 and a taste of what to expect in 2025.
Fuel specifications database
SGS INSPIRE continues to provide a comprehensive overview of fuel standards all over the world, with 124 new specifications for 41 different countries added in October and November. We are constantly improving it to make it more accessible, robust and up-to-date. We provide the most actual data per territory and country, with globally standardized specification units and fuel properties. You can subscribe to our database by contacting us at sgs-inspire@sgs.com.
Europe and Eurasia
Earlier this year, Ursula von der Leyen was re-elected as the European Commission President, and appointed a new cabinet of commissioners-designate tasked with advancing energy, climate, industry, and transport policies. They went through hearings in the European Parliament in November and underlined their policy priorities. Key initiatives include a Clean Industrial Deal, binding 2040 GHG reduction targets, and investments in hydrogen, renewable fuels, and sustainable transport, while maintaining continuity with existing policies.
An unofficial document, issued in September, reveals growing calls within the EU automotive industry for a two-year delay of the adopted CO2 emission reduction targets for cars and vans for citing challenges such as low EV demand, inadequate infrastructure, and potential economic risks. With EV adoption below the required levels, stakeholders emphasize the need for more time to protect industry competitiveness and meet the EU's green transition goals.
In September, 2024, the Finnish government proposed revisions to the renewable fuels' targets in transportation for 2025-2027, suggesting a more gradual increase compared to current targets to align with the EU's Renewable Energy Directive (RED III) and reduce fuel costs.
In September 2024, the EU Commission (EC) launched a public consultation for a draft delegated act defining the methodology to calculate GHG emissions from low-carbon and hydrogen fuels.
The German government has urged the EC to remove palm oil mill effluent (POME) from the RED’s approved advanced biofuel feedstocks, citing market disruptions and concerns over fraudulent labeling of biofuel imports. Germany is calling for stricter regulations and enhanced anti-fraud measures as the EU prepares to implement RED III in 2025, which limits crop-based vegetable oils in biofuels.
On October 23, 2024, the EC awarded EUR 4.8 billion in Innovation Fund grants to 85 projects, supporting hydrogen production, electrolyzer technology, and emission-reduction innovations across high-carbon sectors. The projects include green and blue hydrogen plants, advanced electrolyzer manufacturing, and renewable fuel production, collectively advancing the EU's climate goals and the Green Deal Industrial Plan.
Sixteen EU Member States have urged the EC to delay the mandatory launch of the Union Database for Biofuels (UDB) beyond its November 2024 deadline, citing technical and logistical challenges. They proposed a transition period until 2026 to address readiness issues, such as low registration rates, IT misalignment, and barriers faced by smaller operators and overseas suppliers.
The European Union: overview of diesel quality report has been published, covering the quality specifications, market information and actual quality of diesel sold in the European Union (EU).
SGS INSPIRE published gasoline reports for Spain and the Czech Republic. The biobased gasoline reports for the following European countries have been published: Sweden, the Czech Republic, Denmark, Portugal, and Spain, highlighting the growing market of biogenic fuels, produced from biomass or other renewable sources.The diesel reports have been published for Spain, Switzerland, and the Czech Republic.
In October, SGS INSPIRE published two reports for Azerbaijan: overview of diesel quality and overview of gasoline quality.
SGS INSPIRE published news on the Tajikistan government's attempts to find funds and specialists to launch the Dangara refinery. In October 2024, the Kazakhstan government published an order to ban the export of oil-refining products from Kazakhstan by road and rail transport for six months. This measure also applies to Eurasian Economic Union (EAEU) Member States.
In Uzbekistan, the date of the introduction of the ban on the use of RON 80 gasoline has been postponed according to the new resolution of the President. A Russian Gazprom Neft is considering constructing a network of fuel stations in Uzbekistan.
The construction of Georgia's first oil refinery is planned to be carried out in six stages by Black Sea Petroleum LLC. In Ukraine, the Law establishing mandatory content of liquid biofuels (biocomponents) of at least 5% v/v in all volumes of motor gasoline sold from wholesale and retail fuel outlets was approved.
Upcoming
Overview of gasoline in the European Union
Overviews of gasoline and diesel in Slovakia
Overview of gasoline and diesel in Tajikistan
Overview of gasoline and diesel quality in Norway
North America
In September 2024, the U.S. House approved a resolution to repeal the EPA’s ambitious tailpipe emissions standards, aimed at reducing greenhouse gas emissions from light- and medium-duty vehicles by nearly 50% by 2032.
Early in October 2024, a bipartisan group of U.S. House members proposed the Consumer and Fuel Retailer Choice Act, seeking to authorize year-round nationwide sales of E15, a gasoline blend with 15% ethanol. This follows the Biden Administration’s approval of E15 for eight Midwest states, effective in 2025. The bill requires approval from both chambers of Congress and presidential endorsement to become law.
At the end of October 2024, U.S. representatives proposed extending the Clean Fuel Production Credit (CFPC) expiration to 2037, offering renewable fuel producers a USD 1.25–1.75 per gallon subsidy. Originally set for 2025–2027 under the Inflation Reduction Act, proponents argue the extension ensures stability and boosts biofuel investment. Critics, however, highlight potential federal budget impacts, emphasizing the need for fiscal balance.
SGS INSPIRE found that in 2023, 87% of California's fuel ethanol consumption came from corn starch, 12% from lignocellulosic matter, and less than 1% from sugarcane. As the U.S.'s second-largest ethanol consumer, California used 3.7 billion liters, down from its 2016 peak of 4.3 billion liters. Declining demand reflects the state’s transition to electrification, stricter fuel regulations, and reduced local ethanol production, which fell from 13.8% in 2018 to 5.3% in 2023, increasing reliance on imports.
In 2024, the U.S. hydrogen transportation market continues to grow, driven by government incentives, cleaner fuel demand, and technological advancements. SGS INSPIRE reported that in October, the DOE and DOT announced a $1.2 billion Hydrogen Freight Corridor Initiative to develop refueling infrastructure. Earlier, in July 2024, the DOE released a Hydrogen Transport and Infrastructure Blueprint, detailing steps for production, storage, and vehicle deployment.
Upcoming
Overview of gasoline and bio-based gasoline in Canada
Overview of U.S. vehicles
Latin America and the Caribbean
Results for the fuel quality monitoring program in Uruguay show that diesel sampled in 2024 complied, on average, with color, sulfur content, water and sediments, density, flash point, viscosity, and distillation temperature limits, as defined in the diesel quality specifications. SGS INSPIRE estimates a decrease in diesel imports in 2024 compared with 2023.
Brazil published its 2024 Fuel Quality Monitoring Program results. These show that noncompliance with official quality standards was most found in diesel samples, followed by gasoline and hydrous fuel ethanol. Twenty states of Brazil were covered in the survey. 62,881 samples were collected from January 1 to October 30, 2024.
In October 2024, Colombia’s government temporarily reduced the mandate for blending biodiesel with fossil diesel, intending to stabilize biodiesel inventory levels, which have been reduced in recent months. Colombia’s government predicts that palm oil production will decrease in the last quarter of 2024 compared with the same period in 2023.
Uruguay’s authorities are reviewing the maximum percentage of anhydrous fuel ethanol allowed in regular gasoline, to increase the ethanol blend. This modification would entail updating the gasoline quality specifications in the coming weeks. SGS INSPIRE estimates an increase in gasoline imports in 2024 compared with 2023
The law that establishes the National Program for Sustainable Aviation Fuels, the National Green Diesel Program, and the National Program for Decarbonization of Producers and Importers of Natural Gas and Incentives for Biomethane was approved in Brazil. The law establishes targets for biodiesel blending mandates in diesel for coming years and sets maximum and minimum limits for blending anhydrous fuel ethanol into gasoline.
Brazil's government published its Studies of the Ten-Year Energy Expansion Plan (PDE) 2034 in September 2024, including a biofuels forecast for supply and demand. Brazilian ethanol production capacity is set to climb by 2034, compared to 2023. Soybean oil is expected to maintain its historical leadership position until the end of the period analyzed.
The Government of Paraguay approved the Energy Policy of the Republic of Paraguay to 2050. The policy proposes short-term, medium-term and long-term action plans. These include the strategic axis energy matrix, which encompasses electric vehicles, renewable alternative sources, hydrocarbons and bioenergy sub-sectors, among others.
There are three diesel grades depending on sulfur in Ecuador. However, only 250 mg/kg sulfur diesel is used for transportation purposes. SGS INSPIRE estimates that biodiesel blending in automotive diesel averages 1.2% v/v in Ecuador from 2023 to 2024.
Upcoming
Overview of bio-based gasoline in Uruguay
Overview of gasoline and diesel in Paraguay
Asia and Oceania
Australia’s government released the 2024 Hydrogen Strategy outlining four key objectives for the country’s hydrogen industry.
In October, the Philippines government started enforcing the B3 (diesel containing 2.7-3.2% v/v biodiesel) mandate for all diesel grades, increasing it from B2 (diesel containing 1.7-2.2% v/v biodiesel) which was implemented since 2007.
The Republic of Korea published a new diesel specification increasing the maximum limit of biodiesel from 5% v/v to 7% v/v. The minimum limit of 2% v/v remains.
The Cambodian government plans to adopt the Euro 6/VI-equivalent vehicle emission standards by 2030 under the Euro 6 Roadmap for fuel quality and vehicle emission in Cambodia, in collaboration with the United Nations Environment Programme and the United Nations Economic Commission for Europe.
Thailand’s Minister of Energy adjusted the minimum biodiesel limit in diesel from 6.6% v/v (B7) to 5% v/v (B5) due to high crude palm oil prices, effective from November 21, 2024, until further notice.
India’s state-owned oil company, Indian Oil Corporation Limited, announced its plan to achieve 1% v/v sustainable aviation fuel blended in July-September 2025, ahead of the government’s target in 2027.
Upcoming
New reports on the overview of gasoline and diesel in Nepal