Overall, it's been a good month for the environment.
The European Commission is seeking submissions on the CARS21 policy to determine the long term EU strategy for clean and energy efficient vehicles among other issues.
This week Isuzu confirmed its support for the B20 biodiesel as the first Asian manufacturer to approve B20 for the US market. As reported earlier this year, the research from Brazil by Ipiranga (discussed at the ICIS London conference) implies that the practicalities may take some time to resolve.
There was even a win-win for the aviation industry as ASTM began July with approval of a specification for biofuels for jet engines and Biojet followed this with the release of one billion gallons of aviation biofuel to help develop the market.
As an aside, but on the subject of stockpiles, with the release of the strategic stockpile in the US we have to hope that the lower oil price feeds through to maintaining the recovery now in its 25th month. The US the PMI is continuing to be in positive territory and despite all the concerns about the strength of the US recovery, at 55.3 the Index was up 1.8% compared with May.
Returning to environmental issues, the Chinese government’s decision to implement Republic of China Air Pollution Prevention Law, requiring all new vehicles to comply with the country’s CN4 environment control laws, highlights the global recognition of the need for environmental protection.
Previously in 2008, before the Olympics, this national emissions standard had been applied to the major cities. The widening, and apparently more rigorous enforcement, of CN4 seems to indicate a greater appreciation of the seriousness of the environmental situation in China.
From a lubes industry perspective, this move by China’s Ministry of Environmental Protection also symbolises a step as significant as the implementation of Euro4 in 2005, both marking a clear shift to the next generation of lubricants for the two continents.
As China industrialises and the vehicle park expands, the demand for lubricants in general will increase. Clearly, thanks to the new legislation, the automotive sector will force consumers towards better quality lubricants at the same time, offering both financial and environmental benefits.
As always, if you’d like to offer comment or contributions to the OATS Bulletin, please contact us at bulletin@oats.co.uk.
Sebastian Crawshaw
Chairman