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TOP STORY

ANALYSIS: How big oil seeks shortcuts in climate target ‘arms race’

Oil majors’ climate targets are littered with loopholes but still fall short of Paris Agreement goals, according to assessors struggling to make sense of the piecemeal efforts of one of the most significant sectors for the low-carbon transition.

ASIA PACIFIC

China plans to add aluminium, cement to ETS next year -exchange

China plans to add production of electrolytric aluminium and cement to its national emissions trading scheme next year, according the chairman of the Shanghai Environment and Energy Exchange, a move that will add nearly 2 billion tonnes of CO2 to the market.

Japan to explore ‘proper’ offset use for upcoming carbon market

Japan’s economy ministry has set up a study group to deliver recommendations on the use of offsets in the voluntary carbon market it is planning to launch next April.

Mitsui, New Forests set up Australian carbon forestry fund

Japanese trading house Mitsui and global forestry investment manager New Forests have teamed up to develop a fund that will generate millions of carbon credits from forestry projects in Australia.

EMEA

Euro Markets: EUAs set yet another record as options hedging continues

EUAs set yet another record high in late trading on Monday as continued speculator interest drove the market above another key resistance level, while energy prices struggled to keep pace.

Member states have handed out more than half of 2021 free EUA allocation to industrials –EU

EU member states have handed out more than half the total number of free EUAs for 2021 to industrial installations, nine months later than the normal issuance timeframe, with just three weeks to go before the end of the year.

AMERICAS

Q1 Pennsylvania RGGI entrance doubtful as legislative agency holds up regulation

An agency of Pennsylvania’s Republican legislature has denied Democratic Governor Tom Wolf’s administration the chance to immediately publish its RGGI-aligned cap-and-trade regulation, meaning the Keystone State is likely to see its possible entrance into the Northeast US market slip to Q2 2022 or later.

VOLUNTARY

VCM Report: VER bull run continues as buyers get less picky

Voluntary emissions reduction (VER) values marched higher this week as voluntary carbon market (VCM) sources reported buyers were becoming less choosey about vintage and credit types amid the year-long surge in prices.

Group to sell first online art payable in carbon credits

A crypto venture will on Dec. 9 sell off 100 pieces of artwork as so-called non-fungible tokens (NFTs), the first such event where buyers must pay with carbon credits.

WE’RE HIRING!

Environmental Markets Correspondent, Carbon Pulse – Remote (North America)

We are looking for an Environmental Markets Correspondent based in North America to help us bolster and expand our coverage. The role is full-time and based from home/remotely within the US or Canada.

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Job listings this week

• *Forest Carbon Analyst (Fixed Term Contract), New Forests – San Francisco/Remote
• *Policy Manager, Architecture for REDD+ Transactions (ART) – Arlington/Little Rock/Remote (US)
• *Portfolio Manager, Architecture for REDD+ Transactions (ART) – Arlington/Little Rock/Remote (US)
• *Industrial Program Associate, Architecture for REDD+ Transactions (ART) – Arlington/Little Rock/Remote (US)
• *Senior Manager, Media Relations, Verra – Washington DC/Remote
• *Regional Director North America, Land Life Company – Northern California
• *Manager, Advisory Services, Radicle – Calgary (preferred)
• *Client Advisor, Climate Smart Services, Radicle – Vancouver (preferred)
• *Program Manager, Regional Greenhouse Gas Initiative, Inc. – New York City
• *Forest Carbon Analyst, Finite Carbon – Flexible Location
• *Head of Compliance Sales, South Pole – Amsterdam/Berlin/Paris/London
• *Environmental Markets Correspondent, Carbon Pulse – Remote (North America)
• Head of Secretariat, Beyond Oil and Gas Alliance, IISD – Switzerland
• Research Director, Clean Prosperity – Canada
• Senior Program Officer, Nature-Based Innovations, Verra – Washington DC/Remote
• Program Officer, Innovations, Verra – Washington DC/Remote
• Carbon Management & Energy Transition Advisor, GaffneyCline – Asia-Pacific

*Premium listings

Or click here to see all our listings

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CONFERENCES

IETA is delighted to announce the 2021 Virtual Edition of its European Climate Summit takes place Dec. 7-8. Experience with carbon markets in Europe runs deep. It is a world leader in climate action, designing policies and programs to adapt to changing market dynamics. 2021 and beyond heralds new territory for the market with new regulations and uncertainties, links to new markets and sectors, and funds to drive green recovery, innovation and technology. This edition will look at the future of emissions trading in europe, and aligning the EU ETS with net zero. IETA will bring together leading climate and energy practitioners, industrials, carbon traders, analysts, regulators, to discuss and analyse key developments in carbon markets and emissions trading, green recovery and finance, industry decarbonisation and energy transition. Attendance is free of charge – Register via link above.

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

Mottley’s crew –  Without financing from multilateral lenders such as the IMF, small countries would have to borrow to pay for the mitigation of climate change that has principally resulted from emissions in the world’s major nations, Barbados Prime Minister Mia Mottley told Reuters. Mottley at the COP26 UN climate summit in Glasgow called for $500 bln in annual issuance of Special Drawing Rights, an IMF currency, to finance a transition to renewable energy and limit the rise in global temperatures.

EMEA

Cambo: Last Blood – Shell’s decision last week to pull out of the controversial Cambo oilfield off the UK’s Shetland Islands could sound the ‘death knell’ for new large-scale North Sea projects, industry figures say, as the UK’s tougher climate agenda prompts oil companies to retreat from the ageing oil basin. Sources said Shell’s project partner, the private equity-backed Siccar Point, would struggle to find another partner to take on Shell’s 30% stake in the new oilfield, which has provoked outrage among green campaigners. (Guardian)

Massive expansion – The incoming German coalition government’s energy and climate goals can only be achieved with industrial transformation on a scale never before seen in Germany, according to calculations by The Institute of Energy Economics (EWI) at the University of Cologne. EWI found that new gas-fired power plants with an installed capacity of 23 GW must be built by 2030, tenfold the 2.3 GW listed as planned by 2023. In addition, a massive expansion of wind and solar power plants is required. Separately, the coalition was approved by the three parties’ members in recent days, which will see leaders take their offices on Dec. 8. (Handelsblatt, Clean Energy Wire)

Hydrogen takes flight – Passengers could one day fly to the other side of the world with zero carbon emissions and just one refuelling stop, thanks to government-funded technology being unveiled Monday, the UK government announced. The concept aircraft was unveiled by the Aerospace Technology Institute (ATI) ahead of the fourth meeting of the Jet Zero Council, which is chaired by the UK transport secretary. The FlyZero project, led by the ATI and funded by the UK government, has developed a concept for a midsize aircraft powered by liquid hydrogen. It is capable of flying 279 passengers halfway around the world, or anywhere in the world with just one stop to refuel. Meanwhile, Argus reports that US refiner Phillips 66 will start producing sustainable aviation fuel at its 230,000 bpd UK Humber refinery, and will supply the country’s flagship airline British Airways. The SAF will be produced from waste feedstock and delivered through an existing pipeline directly to UK airports. This is the first SAF production hub in the UK of this scale, with the airline due to start using the fuel on some of its aircraft by next year.

Bilateral energy deals – French and UAE energy outfits have signed a spate of agreements regarding hydrogen and CCS, according to S&P Global Platts. The UAE’s state-owned oil company Adnoc has signed an agreement with French major TotalEnergies to explore joint collaboration in CCS and low-carbon hydrogen as OPEC’s third biggest oil producer seeks to meet its net zero emissions pledge by 2050. S&P Global Platts also reports that UAE clean energy firm Masdar, a subsidiary of the Mubadala Investment Company, and French firm Engie, plan to invest $5 bln to develop 2 GW of renewable and hydrogen projects by 2030. Meanwhile, Emirates Nuclear Energy Corp. signed an agreement with EDF to invest in research and development of low-carbon hydrogen.

AMERICAS

Hydrogen MoUs – Fortescue Future Industries (FFI) has signed Memoranda of Understandings (MoUs) with three indigenous nations in Canada, paving the way for FFI to lead the green hydrogen and green energy revolution across Canada, FFI said in a press release. FFI has signed MoUs with the Lheidli T’enneh First Nation in British Columbia; members of the Homeguard Cree First Nations in northern Manitoba; and the Innu Nation in Newfoundland and Labrador. The MoUs provide a collaborative framework for discussions and negotiations that will assist FFI in determining the viability of building green hydrogen projects using hydro and wind power across Canada. FFI’s CEO signed the MoUs after meeting with Indigenous leaders, federal, and provincial governments and industry executives during a recent 10-day visit to Canada.

Free rides, fare roads  – Toronto’s infrastructure and environment committee voted last week to move the city’s net zero emissions target ahead 10 years to 2040. The accompanying plan includes free public transit, while applying tolls to all arterial roads. Meanwhile, Toronto’s electric utility says it will cost up to $10 bln to build the expanded electricity distribution network needed to get to net zero emissions by 2050. Meeting that capital investment could result in annual rate increases of 8-9% for Toronto Hydro’s residential customers, from 2025 to 2029. The plan heads to city council on Dec. 15, but any commitment there would be largely non-binding. (The Star)

Not coming around the mountain – The beleaguered Mountain Valley Pipeline suffered yet another setback Friday when the Virginia Air Pollution Control Board denied a key permit for a proposed compression station it ruled failed to meet environmental justice requirements. The board rejected the state DEQ’s recommendation after more than 13 hours of public comments with all but one public commenter opposed to the project. The proposed compressor station would facilitate the extension of the 488-km fracked gas pipeline another 120.7 km into North Carolina. The station would be five km from downtown Chatham, Virginia and less than eight km from four environmental justice communities. The Mountain Valley Pipeline is already well over budget and behind schedule. (Climate Nexus)

ASIA PACIFIC

Carbon capture capacity – The geological formations under India have potential to store at least 395 bln tonnes of CO2 according to recent research, the Hindu Business Line reports. The researchers examined all of the 26 sedimentary basins of India and determined that the country’s potential holds anywhere between 395 to 614 bln tonnes of CO2.

AND FINALLY…

Free trees da – Every household in Wales will be offered a free tree to plant as part of the partly-devolved Welsh government’s climate crisis plans, reports WalesOnline. People can choose a tree of their own to plant or opt to have a tree planted on their behalf. The first trees will be available to collect from March from one of five regional community hubs being set up with 20 more set up by October next year as part of the scheme, being run with the UK’s non-profit Woodland Trust. The administration judges it needs to plant 43,000 hectares  of new woodland by 2030, and 180,000 hectares by 2050 to meet climate crisis targets. Woodland creation has not exceeded 2,000 hectares since 1975.

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