MOSCOW (MRC) - U.S. governors from Massachusetts and Connecticut announced their commitment to a low-carbon transportation program on Monday, but gasoline-related trade groups say it has flaws that will harm, rather than promote, use of fuels that produce fewer pollutants, as per Reuters.
Some oil refiners and energy trade groups have been more supportive this year of low-carbon fuel programs nationwide because the incentives can prove profitable for their industries. The Transportation and Climate Initiative Program, or TCI-P, favored by the states would require large gasoline and diesel suppliers to purchase auctionable "allowances" for the pollution caused by combustion of fuels they sell in participating areas.
Trade groups, including the National Association of Truckstop Operators (NATSO) and the National Association of Convenience Stores (NACS), argue that TCI-P fails to effectively encourage investment in alternative fuels, and instead only penalizes fuel retailers that sell traditional fuel, according to a letter seen by Reuters addressed to a Massachusetts state official.
Another incentive program, California's Low Carbon Fuel Standard, allows refiners to generate tradable credits with production of lower carbon-intensive fuels. "Market-oriented incentive policies have proven to drive private sector investment in clean fuels, but TCI's centralized, punitive structure will make businesses reluctant to embrace alternative fuels," said David Fialkov, counsel to NATSO.
Kathleen Theoharides, secretary for the executive office of energy and environmental affairs in Massachusetts, said that through the program, the market would encourage investment. "This is certainly going to send a market signal that if they make investments in renewable blends, they can pass on a cheaper cost to consumers and outcompete their competitors," Theoharides said.
As MRC informed earlier, during the week ended 19 December, chemical railcar traffic in North America totaled 45,883 carloads, down 1.2% from the previous week and up 0.6% year-over-year (YOY). On a four-week basis, volume was up 6.1% from 2019 and down 4.6% from 2018 (chart). For the year to date, chemical railcar traffic in North America was down 2.8%, even with the previous week and the highest figure since mid-May, when volume for the year to date was down 2.4%.
We remind that Russia"s output of chemical products rose in October 2020 by 7.2% year on year. At the same time, production of basic chemicals grew in the first ten months of 2020 by 6.3% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-October output. October production of polymers in primary form grew to 857,000 tonnes from 852,000 tonnes in September. Overall output of polymers in primary form totalled 8,340,000 tonnes over the stated period, up by 17% year on year.
We also remind that Russia's output of products from polymers grew in October 2020 by 6.3% year on year.
However, this figure increased by 1.5% year on year in the first ten months of 2020. According to the Russian Federal State Statistics Service, October production of unreinforced and non-combined films rose to 124,000 tonnes from 117,600 tonnes a month earlier. Output of films products grew in January-October 2020 by 8.5% year on year to 1 104,900 tonnes.
MRC