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TOP STORY

Twenty-four nations join EU-US alliance to slash methane emissions

Some 24 new countries on Monday joined the ranks of an EU-US-led initiative aimed at accelerating methane emission cuts, providing a boost to the fast-approaching COP26 UN climate summit in Glasgow.

ASIA PACIFIC

Major Australian business group calls for tougher emissions target, carbon market

The Business Council of Australia on Saturday released an economy-wide pathway to net zero by 2050 for Australia, which included a hugely ramped-up 2030 target and policy changes that would see market mechanisms play a bigger role.

China to hammer out standards for carbon neutral claims, seen to limit offset supply

China’s central government has launched a process to establish standards for carbon neutral claims and processes, a move analysts say will likely tighten settings for developing offset credits.

In pilot project, Japan to earn offsets from Australia-generated hydrogen utilised in Indonesia

Japan’s environment ministry has agreed to co-fund a demonstration project that will see green hydrogen produced in Australia transported to and utilised in Indonesia, where it will earn carbon credits under the Joint Crediting Mechanism (JCM).

Market sees continued upside in Australian offset prices despite govt policy, survey shows

A large majority of participants in Australia’s carbon offset market expect ACCU prices to be A$40 or higher in 2030, according to a survey published Monday, despite the government continuing to fend off any proposals to strengthen the country’s climate policy.

Offset requirements could render Australian basin development unprofitable -analysts

Fossil fuel companies have been exploring the potential for fracking in Australia’s Beetaloo sub-basin, but if the Northern Territory state government stands by its recommendations on offset requirements then big-emitting projects will likely be rendered unprofitable, analysts said Monday.

Queensland to host giant new electroloyser and green energy manufacturing hub

The Australian state of Queensland will host a giant green energy manufacturing facility to be developed by Fortescue Future Industries (FFI), the subsidiary of iron ore magnate Andrew Forrest’s Fortescue Metals Group (FMG), in a deal announced jointly between FFI and the Queensland government over the weekend.

INTERNATIONAL

Financing in September: Carbon funds have stellar month as allowance prices soar to new heights

Investors rejoiced as compliance-grade carbon funds had a stellar month in September, with allowance prices in several markets soaring to new all-time highs.

Several nations produce revised Paris pledges ahead of latest UN deadline

A handful of countries submitted revised Nationally Determined Contributions (NDCs) to the Paris Agreement on Monday, just ahead of the cut-off for the UN to include the pledges in its final report ahead of the COP26 Glasgow summit.

VOLUNTARY

VCM Report: CORSIA-eligible VERs plummet to 1.5-mth low

Standardised, CORSIA-grade voluntary emissions reduction (VER) prices trended lower over the past week, though the losses in the exchange-traded products accelerated on Monday as traders pondered reasons for the sell-off.

Commonwealth Bank, Xpansiv to build Australian voluntary offset market infrastructure

The Commonwealth Bank of Australia (CBA) has invested A$15 million ($11 mln) in trading platform Xpansiv to help build infrastructure for Australia’s voluntary offset market, ahead of the exchange launching an ACCU contract in the first half of 2022.

EMEA

Euro Markets: EUAs drift in low-key market as gas and power give up early gains

EUAs posted moderate gains in low-key trading on Monday, as traders absorbed margin adjustments for energy contracts while coal prices resumed their climb after big drops last week.

AMERICAS

Chevron omits product-based emissions in aspirational net zero target

Chevron on Monday said it will aspire to achieve net zero emissions from its equity upstream operations by 2050, though the US oil major declined to include GHG output from the fuel it sells in this endeavour.

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Job listings this week

• *Carbon Market Associate, The Nature Conservancy – Arlington/London/Elsewhere
• *Global Carbon Markets Program Manager, The Nature Conservancy – London/Brussels
• *Director of Fund Operations, Conservation International – Arlington/Seattle/Remote
• *Senior Portfolio Manager, Conservation International – Arlington/Seattle/Remote
• *Chief Portfolio Officer, Emergent – Barcelona/NYC/Miami preferred
• *Director, Climate Smart Solutions, Radicle – Canada
• *Carbon Project Developer, ClimatePartner – Munich
• *Head of Research and Innovations, SustainCERT, Luxembourg / Amsterdam / Switzerland / Elsewhere
• Director, Financial Innovations, Verra – Washington DC/Remote
• Program Officer, Events, Verra – Remote
• Low Carbon Markets Analyst, LNG Consultant, S&P Global Platts – Various locations
• Advisory Senior Consultant, Carbon Trading & Risk Analytics, Deloitte – Minneapolis
• Fellow/Senior Fellow for Climate Change Policy, Council on Foreign Relations – Washington DC
• Carbon Emissions Broker, SSY Futures – Singapore
• Manager, Policy and Advocacy, Carbon Market Institute – Melbourne/remote
• Climate Commitment Act Communications Consultant, Washington Dept. of Ecology – Lacey
• Corporate Sale Trader (Czech), Vertis – Warsaw
• Corporate Sale Trader (Bulgaria), Vertis – Warsaw/Budapest

*Premium listings

Or click here to see all our listings

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CONFERENCE

Prospero Events’ Carbon Trading and Markets 2021 virtual conference takes place Nov. 8-9. This virtual conference will gather C-level experts responsible for carbon & power trading, carbon markets & pricing, climate policy, ETS and market analysis from leading European energy companies as well as banks and other financial institutions. The conference will focus on discussing the ongoing challenges and trends in carbon markets and carbon trading insights. You can expect presentations and case studies from MOL Group, Enel, HeidelbergCement AG, Fortum, Berenberg, and more. Up to 90 minutes of Q&A and networking time.

BITE-SIZED UPDATES FROM AROUND THE WORLD

Carbon Pulse has teamed up with CME Group to provide its clients with regular updates on the global carbon markets. Check out these briefs for the latest insights on pressing trends and events impacting markets, published every other week. Registration required

EMEA

Bond barrage – Europe’s first green bonds are finally arriving, and investors are gearing up for an “absolute riot” of demand, Bloomberg reports. This week’s EU sale will be the starting salvo for as much as €250 bln of such assets that will make it the world’s biggest green borrower.

Green is clean – Only hydrogen produced with renewable energy met eligibility standards under the EU’s renewable energy directive, according to a study published by NGO the International Council on Clean Transportation (ICCT). It found various other sources of hydrogen production failed to deliver the requisite 70% reduction in emissions relative to fossil fuels required by the under-review directive. Hydrogen produced through biomethane or through natural gas in conjunction with CCS had the potential to deliver significant emissions reduction, yet it was possible these methods could emit even more GHG than fossil alternatives to hydrogen. (Montel)

Reaching out to Rishi – UK business minister Kwasi Kwarteng has made a formal request to the finance ministry to support British industries hit by soaring energy costs, the BBC reports, citing an anonymous source following talks between ministers and industry leaders. The details have not been disclosed, but they are thought to focus on a temporary solution to high prices. Sectors such as steel manufacturing have called for a price cap amid fears for the survival of some factories. Kwarteng’s proposal follows confusion over the weekend, when his claim to be in talks with Rishi Sunak, the finance minister, about potential support was disputed by a finance ministry source. The PM’s spokesman on Monday said finance ministry officials were involved in talks with the business ministry. Meanwhile, multiple media outlets reported that ministers will announce plans for levies on gas bills to fund low-carbon heating within the next fortnight. Before it hosts COP26, the government will publish a new strategy with a carbon pricing scheme that also commits to cutting the price of electricity, which is significantly higher than gas. The approach will seek to end price distortions by removing green levies from electricity bills over the next decade and imposing new charges on gas bills.

Carbon continues – A deal to avert another CO2 crisis in the UK food and drink industry has been extended until early 2022. Fertiliser firm CF Industries, a key CO2 producer, has agreed to continue supplies of the gas. It said that should give the government and firms time to find other sources of CO2, used in fizzy drinks and for keeping food fresh, as well as to stun pigs and chickens before slaughter. Firms will now have to pay more for their CO2, but it is unclear how much. Last month, the government stepped in to subsidise one of the firm’s plants after its shutdown due to high gas prices threatened food supplies. CF Industries suspended production at two UK ETS-covered sites that make 60% of the UK’s commercial CO2. (BBC)

AMERICAS

Cardinal Sin(ema) – Arizona Sen. Kyrsten Sinema, who began her political career with the Green Party and who has voiced alarm over the warming planet, wants to cut at least $100 bln from climate programmes in major legislation pending on Capitol Hill, two people familiar with the matter told the New York Times. Sinema is one of two centrist Democrats in the Senate whose votes are crucial to passing two bills that together would comprise President Joe Biden’s legislative agenda: a $1 trillion infrastructure bill and a separate $3.5 trillion budget bill. The potential programme disbursements to get cut are $30 bln for a “Green Bank” to help communities finance construction of solar panels and electric vehicle charging stations, and $30 bln to create a “Civilian Climate Corps” that would hire young adults to work in climate mitigation and adaptation, with half coming from communities of colour.

Reporting card – The Washington Department of Ecology has released proposed rule language for reporting GHG emissions under the state’s Climate Commitment Act (CCA), which sets out a WCI-modelled cap-and-trade programme for implementation in 2023. This rulemaking adds gas and CO2 suppliers and electric power entities to the state’s existing GHG reporting programme, replaces the transportation fuel supplier programme with a CCA-compatible version, and updates GHG reporting requirements to support the legislation and facilitate linking with other jurisdictions. A public comment period on the rulemaking is open through Nov. 16, with an online public hearing taking place Nov. 9 at 1000 Pacific time (1800 GMT). The department anticipates adopting the rulemaking on Feb. 9, 2022.

Get ‘Lo – Mexican President Andres Manuel Lopez Obrador (AMLO) presented details on Monday of a proposal that is likely to squeeze out hundreds of private power generating plants and may provoke complaints under the Mexico-US-Canada free trade accord. The constitutional reform presented by would cancel contracts under which 34 private plants sell power into the national grid, and declares “illegal” another 239 private plants that sell energy direct to corporate clients in Mexico. It also would cancel many long-term energy supply contracts and clean energy preferential buying schemes, often affecting foreign companies. The president’s bill – which needs a two-thirds majority to pass in Congress – is meant to shore up the finances of the federal utility, which currently produces only about 38% of the country’s electricity because its plants are older, more expensive to run, and more polluting. (AP)

ASIA PACIFIC

Refiner to renewables – Eneos, Japan’s biggest refiner, plans to buy Japan Renewable Energy for about 200 bln yen ($1.8 bln) from Goldman Sachs and Singaporean sovereign wealth fund GIC, Reuters reports. The deal would mark the first major purchase of a renewables company by a top Japanese oil company, the Nikkei said, as Eneos looks to shift away from fossil fuels. Founded in 2012, Japan Renewable Energy develops and builds renewable energy assets and has 419 MW of solar, onshore wind, and biomass capacity in operation, with a further 410 MW under construction.

Refiner to renewables, part II – Indian refiner Reliance Industries on Sunday announced a brace of clean energy deals, including the acquisition of REC Solar Holdings and Sterling & Wilson Solar, underscoring billionaire Mukesh Ambani’s ambitions to grow its renewable energy portfolio quickly, according to Livemint. Reliance, which generates more than half of its revenue from refining and chemicals, is pivoting to clean energy with plans to set up the Dhirubhai Ambani Green Energy Giga Complex.

Clean energy dialogue – The third UK-India Energy for Growth Dialogue concluded on Friday, Economic Times reports, with Minister for Power and New and Renewable Energy Raj Kumar Singh and UK Business and Energy Secretary Kwasi Kwarteng agreeing a new joint programme on smart power and renewable energy. The Smart Power, Renewable Energy and Storage programme will complement ongoing efforts to promote efficient power distribution, industrial energy efficiency, electric vehicles, solar, and offshore wind generation and energy storage.

AND FINALLY…

Royal wine & cheese – Burnishing his green credentials before the COP26 Glasgow UN climate summit, it was with pride that Prince Charles, the son and heir of Britain’s Queen Elizabeth, revealed that he runs his Aston Martin car on surplus English white wine and whey from the cheese making process. Some campaigners pointed out that this approach – using a high blend of bioethanol made from cheese and wine wastes – may be of significant harm by driving deforestation and land use change were it to be heavily replicated and should not be mistaken for a serious solution to decarbonise vehicles. (Guardian)

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