CP Daily: Monday November 1, 2021

Published 01:16 on November 2, 2021  /  Last updated at 17:53 on November 2, 2021  /  Newsletter  /  No Comments

A daily summary of our news plus bite-sized updates from around the world.

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COP26

COP26 Roundup: Day 1 – Nov. 1

The long awaited, already once postponed COP26 UN climate talks have finally gotten underway in Glasgow. In our daily running blog, Carbon Pulse will report updates as they happen.

INTERNATIONAL

US, EU strike metals tariff deal viewed as move towards sectoral climate ‘club’

The US and the EU on Sunday agreed to end Trump-era tariffs on steel and aluminium and vowed to work towards a broader global arrangement that would penalise countries that don’t meet low-carbon targets.

Over 100 forest nations pledge to end deforestation by 2030

Over 100 forest-rich nations have committed to “halt and reverse forest loss and land degradation” by the end of the decade, with the action set to be funded by almost £14 billion in public and private sources, the UK is set to announce at the COP26 summit in Glasgow on Tuesday.

ASIA PACIFIC

New Zealand’s updated NDC promises deeper emissions cuts, offset buying

New Zealand on Sunday released an updated NDC ahead of COP26, promising to cut an extra 52 MtCO2e in the years to 2030 with the additional emissions reductions likely to be met largely through the international carbon market.

NZ releases company-level emissions data for the ETS

New Zealand has for the first time released company-level carbon data for participants in its emissions trading scheme.

Australia releases framework for Indo-Pacific carbon market, eyes Indonesia partnership

Australia on Monday published legislation outlining a financial framework for its planned Indo-Pacific carbon market, after agreeing with Indonesia over the weekend to work together on offsets.

Australia registers first CCS offset project

Australia has become the world’s first nation to officially approve a carbon capture and storage project to generate carbon credits.

BP hires new head of China carbon trading desk

Oil major BP has hired a veteran project originator and carbon trader to lead its carbon trading operations in China after losing most of its regional team to Glencore earlier this year.

AMERICAS

NA Markets: California carbon breaks through $32, RGGI dives beneath $12

California Carbon Allowance (CCA) prices roofed to a fresh all-time high above $32 on Monday, while RGGI Allowances (RGAs) briefly plummeted beneath the $12 mark on potential bearish implications of Virginia’s Tuesday election and lower natural gas prices.

RGGI CO2 output inches down in third quarter as emissions exceed compliance holdings

Third quarter CO2 output under the Northeast and Mid-Atlantic RGGI programme stayed just below levels from 2020 when factoring out new entrant Virginia, though year-to-date emissions still overshot estimated compliance holdings in the power sector cap-and-trade market.

VOLUNTARY

VCM Report: Nature-based VERs hit $10 as carbon credit demand overwhelms

Voluntary emissions reduction (VER) prices neared or reached the $10 mark on standardised, exchange-traded nature-based offset contracts this week, as traders reported booming demand across the entirety of the voluntary carbon market (VCM).

Singapore-based exchange holds pilot portfolio auction of voluntary offsets

Singapore-based carbon exchange Climate Impact X (CIX) on Monday auctioned off a portfolio of 170,000 nature-based carbon credits as a test run ahead of a full launch of regular such sales next year.

EMEA

Euro Markets: EUAs fall to 1-week low below €57 as gas reverses course

EU carbon fell back from a two-week high to its lowest for more than a week on Monday as traders were caught out when rising gas prices reversed course despite strongly bullish developments.

UK firm appointed for carbon capture FEED study in Germany

UK carbon capture start up firm Carbon Clean has been appointed by global building materials manufacturer Cemex to work on a FEED study for carbon capture at an industrial site in Germany, it was announced by the company on Monday.

Fortescue’s green energy arm strikes UK hydrogen supply deal

Fortescue Future Industries (FFI), the clean energy subsidiary of Australian mining giant Fortescue Metals Group (FMG), has signed a major green hydrogen supply deal with UK construction firm JCB and supply firm Ryze Hydrogen, it announced.

Swiss aviation carbon permit sale clears at record high

Switzerland’s second ever aviation carbon allowance auction has cleared at an all-time high.

ICYM

US Supreme Court accepts appeal to hamstring power sector CO2 regulations

The conservative-dominated US Supreme Court on Friday agreed to hear a legal challenge that would kneecap the EPA in regulating CO2 emissions or allow Congress to delegate such authority to the agency, in a potentially ominous sign for the country’s already minimal climate policy future.

Death of key Article 6 negotiator to weigh heavily at COP26

As delegates descend on Glasgow next week to attempt to finalise the Paris Agreement’s Article 6, the absence of one long-time carbon markets negotiator who died tragically earlier this year from COVID-19 will weigh heavily on their work.

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CONFERENCE

Prospero Events’ Carbon Trading and Markets 2021 virtual conference now takes place on Dec. 6-7. 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

AMERICAS

Manchin Mondays – After days of silence and muddy messaging, conservative US Sen. Joe Manchin has made his position known on the $1.7 trillion social and climate spending framework unveiled last week: He’s not ready to support it, and it’s not clear whether or when he will be. The West Virginia Democrat today demanded that the cost estimate for the draft legislation be produced before he can commit to supporting it, saying more information is needed to guard against what he alleged were “shell games” and “budget gimmicks.” A Congressional Budget Office “score” of a complex, nearly 1,700-page bill that’s still being negotiated could take weeks to complete. As a result, Manchin might have doomed prospects for House Democrats being able to vote on the reconciliation measure by the week’s end – a goal intended to bolster President Joe Biden’s standing during COP26. (E&E News)

Sweet 16 – The Alberta government on Monday said it is using up to C$176 mln from the Technology Innovation and Emissions Reduction (TIER) regime and federal Low Carbon Economy Leadership Fund for 16 projects that will cut almost 7 Mt of GHs by 2030. Funding is being delivered through Emissions Reduction Alberta’s (ERA) Shovel-Ready Challenge, and will support about 5,600 jobs while injecting C$2 bln Alberta’s economy, making it the largest investment in ERA’s history. The funding is supporting lower carbon industrial processes, cleaner oil and gas, and low-emitting electricity.

It’s (R)in the bag – Environmental product development firm IncubEx on Monday announced the first ever physical delivery of US biofuel credits (RINs) from a futures contract was completed last week on Nodal Exchange. 100,000 RINs of the D3 (cellulosic/renewable natural gas) Oct-21 V21 contract went to delivery priced at $3.37, IncubEx told Carbon Pulse.

ASIA PACIFIC

Low emissions partnership – Australia and the Republic of Korea will work together to drive increased adoption of low and zero emissions technologies through a new Australia-Republic of Korea Low and Zero Emissions Technology Partnership, Australia’s minster for energy and emissions reduction, Angus Taylor states. Prime Minister Scott Morrison and President Moon Jae-in of the Republic of Korea (ROK) agreed the partnership during bilateral talks at the G20 summit in Rome, ahead of COP26 in Glasgow. “Australia and ROK share a forward facing relationship that is rising to new challenges, and today I was delighted to begin a new partnership that will position both Australia and ROK to play a leadership role in the global response to climate change, a defining challenge and opportunity of our time,” Australia’s prime minister Scott Morrison said in a statement.

Act now on net zero – Australia needs to act now to lift its rate of carbon emissions reduction, or it has little chance of reaching net zero by 2050, says the Grattan Institute, a Melbourne-based think tank in a report. The reports recommend sector-specific policies, including a cap on vehicle emissions, bigger roles for the Emissions Reduction Fund, the Safeguard Mechanism, and energy efficiency obligations, giving priority to R&D into emissions-reducing technologies and their supply chains, more investment in the electricity grid, and better integration of state renewable electricity schemes.

VOLUNTARY

Mining scopes – Global mining firm Anglo-American announced that it has set a target for a 50% cut in Scope 3 emissions by 2040, the company announced in a statement releasing its climate change 2021 report. “Beyond the natural depletion of certain assets in our portfolio by 2040, we are working to reduce emissions in our supply chain and logistics, particularly in shipping, and working with customers and technology partners on low carbon steelmaking technologies. If the decarbonisation of the steel sector accelerates, in part because of the partnerships we are building, this would allow us to go further still,” Anglo-American said in the statement.

Finance aligning with net zero – Signatories to the Net Zero Asset Managers initiative have disclosed interim targets for the share of their assets that are managed in line achieving net zero emissions by 2050, with 35% of total assets managed in line with achieving this target, the Investor Group on Climate Change stated in a press release.

AND FINALLY…

Bed trawling – The top of the North Sea seabed stores 100 Mt of CO2 but it is not protected from disturbance from trawlers or the installation of offshore wind turbines, according to a report led by the Scottish Association for Marine Science. A 10cm layer contains the equivalent of 20% of the carbon stored in Britain’s forests, but conservationists say the government has not measured or managed it. The study said the total amount of carbon stored in the seabed was far greater and could extend down several metres. (The Times)

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