CP Daily: Tuesday November 2 , 2021

Published 01:20 on November 3, 2021  /  Last updated at 01:27 on November 3, 2021  /  Newsletter  /  No Comments

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

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COP26

ANALYSIS: EU’s carbon border plans test alliance with poorer nations

The EU’s proposed carbon border adjustment measure (CBAM) risks straining the bloc’s alliance with the world’s poorest nations as COP26 UN talks kicked off in Glasgow this week, with lawmakers considering ways of appeasing their partners while keeping the flagship climate measure.

New US regulations seek to bolster credibility of Global Methane Pledge

The US Environmental Protection Agency (EPA) proposed new rules Tuesday that would help cut methane emissions from the oil and gas sector, hours before the US and EU-led Global Methane Pledge was formally unveiled at COP26.

COP26 Roundup: Day 2 – Nov. 2

Heads of state are still delivering national statements at Day 2 of COP26 in Glasgow, while a full programme of side-events  is now underway and technical negotiations on agenda items go on behind the scenes.

ASIA PACIFIC

Millions in carbon project investments on hold after Australia proposes restrictions

Investors have put millions of dollars on hold after it emerged over the weekend that Australia could impose restrictions on how much land farmers can dedicate to carbon offset projects.

Fiji signs up to Australia’s Indo-Pacific offset scheme

Fiji has become Australia’s first official partner under its planned regional carbon offset market, which will allow Australian companies access to emissions credits generated in the Pacific Island nation.

HK-listed company to launch global carbon fund

A Hong Kong-listed investment holding company is launching a global carbon fund, planning investments in voluntary offsets as well as units in various compliance markets.

Chinese verifier caught faking ETS data a second time

A Beijing-based environmental consultancy has been caught falsifying ETS emissions data for a coal-fired power plant in Henan province, just months after a similar incident in Inner Mongolia.

AMERICAS

ART programme approves Colombia for jurisdictional REDD+ concept

The Architecture for REDD+ Transactions (ART) programme on Tuesday announced it has approved a listing from Colombia to generate carbon credits, with the proposed area for the subnational endeavour already containing several private-sector led deforestation reduction projects.

Massachusetts GWSA emissions decline in Q3, but trend still points to surplus draw

Power sector emissions under Massachusetts’ Global Warming Solutions Act (GWSA) cap-and-trade programme receded during the third quarter of the year, though CO2 output was still on track to exceed the in-state carbon market’s adjusted 2021 allowance budget.

EMEA

Euro Markets: EUAs climb to five-day high as gas markets rally on renewed supply worries

EUA prices rallied to a five-day high in volatile trade on Monday, as energy markets clawed back most of their losses from yesterday amid revived concerns over gas supply to Europe.

VOLUNTARY

Investors top up VER fund to bet on ‘undervalued’ carbon

A Melbourne-based carbon fund took only five days to add A$75 million ($56 mln) to its funds amid growing investor interest in high-quality voluntary carbon credits.

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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

INTERNATIONAL

Here comes more money – Blackrock, the world’s largest asset manager, has mobilised $673 mln for the Climate Finance Partnership (CFP), an initiative that aims to mobilise finance towards climate-related infrastructure in emerging markets in Asia, Central and South America, and Africa. The CFP represents a public-private partnership with the governments of France, Germany, and Japan, along with private foundation’s contributing $130 mln to the total. The fund aims to help accelerate the global transition to a net zero global economy, including through investments in grid connected and distributed renewable power generation, energy efficiency in residential, commercial and industrial sectors, transmission or energy storage solutions, and ultra-low emission or electrified transportation and mobility services.

AMERICAS

The Young(kin) and the RGGI-less? – Virginia Republican gubernatorial candidate Glenn Youngkin beat former governor and Democratic candidate Terry McAuliffe in the state’s election on Tuesday, polling analysts projected. The result would see Youngkin take over for current Democratic Governor Ralph Northam (D), who cannot run for a second consecutive term under Virginia’s Constitution. Virginia’s House was also up for grabs on Tuesday, with some analysts also expecting the GOP to flip the chamber from Democratic control. Although the Virginia Senate is not up for re-election until 2023, some traders said allowance prices under the Northeast US RGGI programme had fallen in recent days over concerns that a Republican victory could eventually lead to Virginia exiting the regional power sector carbon market, which the state only entered this year. While Youngkin has not publicly commented on Virginia’s RGGI membership, the former CEO of private equity firm The Carlyle Group said he would “change direction from the clean energy plan that was passed” by the state legislature in 2020, which included language to allow the state to conduct full auctions under the cap-and-trade programme.

Working in Washington – The Washington Department of Ecology (ECY) on Monday released working draft text for the state’s cap-and-trade regulation as it begins stakeholder outreach on the Climate Commitment Act rule development. ECY will present the rulemaking timeline, stakeholder involvement process, and preliminary draft text during a webinar on Nov. 8 at 1000 Pacific time (1800 GMT). Washington is aiming to implement its WCI-modelled carbon market in Jan. 2023.

Hang 10 – Argentina on Tuesday submitted a minor update to its enhanced Paris Agreement NDC, pledging to unconditionally lower GHG emissions 27.7% below the levels set out in its 2016 Paris Agreement commitment. This means that economy-wide emissions will total no more than 349 Mt in 2030, compared to the previous 359 Mt. This was the only update to the country’s NDC made in the new submission. (See Carbon Pulse’s NDC tracker for more info).

Don’t hy(drogen) for me Argentina  – Australian mining billionaire Andrew Forrest is planning what could be up to an $8.4 bln “green hydrogen” investment in Argentina, Reuters reports. Fortescue is looking at developing the project in the province of Río Negro with a view to producing green hydrogen on an industrial scale, which the government said would help create more than 15,000 direct jobs. “It is expected to turn Río Negro into a global green hydrogen export hub by 2030,” the government said.

RFS suit –Ethanol interest group Growth Energy will sue the US EPA for its delay in releasing Renewable Fuel Standard (RFS) volume proposals, the group announced in a letter to EPA Administrator Michael Regan on Tuesday. The agency is way past due on releasing proposals for renewable volume obligations (RVOs) for 2021 and 2022, and a possible proposal to draw back on 2020 volume. Growth Energy said that under the Clean Air Act, the EPA has until Nov. 30 to issue the following year’s biofuel quotas. However, the preliminary RVOs for 2021-22 are still under interagency review at the White House Office of Management and Budget. (DTN/The Progressive Farmer)

ASIA PACIFIC

Australia hydrogen bid – In the wake of its “overwhelming” response to a call for wind and solar and pumped hydro project proposals, Australia’s New South Wales (NSW) state government has now opened an Expressions of Interest (EOI) for a renewable hydrogen hub, RenewEconomy reports. The NSW government unveiled its green hydrogen strategy last month, which included a promise of $3 billion ($2.25 bln) in incentives which will hopefully drive A$80 bln worth of investment. The incentives come on top of an already committed A$70 mln by the NSW government to develop hydrogen hubs in the Illawarra and Hunter regions of the state.

Five of five – Australia on Tuesday launched an offset method for biomethane projects for consultation. The approach included variations to three waste methods – animal effluent biomethane, electricity generation from landfill gas biomethane, and domestic and commercial industrial wastewater biomethane – that existing projects can upgrade to. That means the Clean Energy Regulator has now developed offset methods for all the five priority areas identified by the government last year.

EMEA

From Russia with no love – Russia approved a long-term government climate strategy on Monday, targeting carbon neutrality by 2060 while rejecting US allegations it was not doing enough on climate change. Lawmakers approved the 2050 strategy to reduce emissions, which envisages Russia reducing its net GHGs to 80% of 1990 levels and 60% of 2019 levels by 2050. Russia will start implementing green projects next year including ones aimed at carbon capture, PM Mikhail Mishustin told a government meeting, referring to a technology that is still at a very early stage. President Vladimir Putin, the leader of the world’s no. 4 GHG emitter, on Tuesday delivered a recorded message to the COP26 talks in Glasgow, which he has declined to attend. After this weekend’s G20 talks, US President Biden criticised Russia for not bringing a new proposal to the table – criticism that Kremlin spokesman Dmitry Peskov rejected. (Reuters/Euractiv)

VOLUNTARY

Eight to the party – The American Carbon Registry (ACR) on Tuesday announced an open public comment period for updates to the ACR Standard v8.0, which details ACR’s requirements and specifications for the quantification, monitoring, reporting, verification, registration and issuance of project-based GHG emissions reductions and removals as carbon credits. Written comments are due by Dec. 31, and the changes will go into effect Jan. 2022.

AND FINALLY…

Manchin Tuesdays – US Sen. Joe Manchin (D) was a keynote speaker at an exclusive, invitation-only, coal industry event in late September, Documented reports. The “Coal and Investment Leadership Forum” took place at an exclusive golf resort owned by Jim McGlothlin of United Coal Company. Manchin, who received nearly half a million dollars last year from the coal brokerage he founded and his son runs, has been “successful” in protecting the coal industry during recent negotiations, Joe Craft III, CEO of Alliance Resource Partners told investors on an Oct. 25 earnings call. Craft, a billionaire Trump donor with close ties to the former president’s disgraced EPA chief Scott Pruitt, was listed as a “host” of the secretive event. Manchin used his power in the Senate to force the removal of the Clean Energy Performance Program from the Build Back Better Act and has also demanded paid family leave be removed from the bill, among other measures that would regulate big business and the fossil fuel industry to protect public health. On Monday, Manchin said he needed “more clarity” on the bill already dramatically pared down and rewritten to comply with his demands, prompting Missouri Rep. Cori Bush to release a statement calling Manchin’s objections “anti-Black, anti-child, anti-woman, and anti-immigrant.” (Climate Nexus)

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