CP Daily: Friday December 10, 2021

Published 00:33 on December 11, 2021  /  Last updated at 00:33 on December 11, 2021  /  Newsletter  /  No Comments

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

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TOP STORY

CN Markets: China ETS sees record volumes with just days left for emitters to comply

The Chinese carbon market saw record trade this week ahead of the Dec. 15 compliance deadline, though if estimates are correct there is still a lot of demand to be filled in just four trading days.

AMERICAS

US makes good on promise to end overseas support to coal, broadens scope -media

The US administration has ordered an immediate stop on public finance to overseas coal plants and other carbon-intensive energy projects, Bloomberg reported on Friday, citing a diplomatic cable.

EMEA

EU commits first cash to carbon-cutting projects under Innovation Fund

Some 30 out of 32 initially-selected small-scale projects have signed grant deals to receive cash under the EU’s Innovation Fund, the European Commission said on Friday, the first such awards under the ETS-funded programme.

Western Balkan nations commit to launch carbon pricing by 2026

Western Balkan nations have committed to imposing carbon pricing by 2026, a timeframe matching the expected go-live of the EU’s carbon border adjustment mechanism (CBAM), according to a decarbonisation roadmap formally adopted by six governments.

Euro Markets: EUAs post 7th weekly increase as traders resume buying after Thursday’s steep drop

EUAs rallied on Friday as traders absorbed the impact of the previous session’s 9.8% drop and news that Poland’s parliament had called for the EU ETS to be suspended while being reformed.

ASIA PACIFIC

Australia pivots for hydrogen export boom, models renewables build for “superpower” status

Australia has the potential to become one of the world’s largest suppliers of hydrogen by the end of the decade if the country’s project pipeline is completed on time, a report from the Australian government released on Friday has claimed.

Australia to put restrictions on some on-farm offset methods, review eligible voluntary credits

Australia will restrict the amount of farm land that can be used for some types of offset projects if they are shown to have a negative impact on agricultural production and carry out a review of the types of carbon credits that can be used for voluntary purposes.

VOLUNTARY

Insurers eye $1.3 billion opportunity in voluntary carbon market

The insurance sector should bolster its role in the growing voluntary carbon market, according to a recent report that estimates that the sector’s 2030 cut could be as high as $1.3 bln, as more market participants look to address risks associated with forest fires and other perils.

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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

Going clubbing – The EU’s proposed CBAM carbon border adjustment mechanism is a “legitimate” instrument to consider, and the US are “exploring it” as well, US climate envoy John Kerry told EURACTIV while on a European visit. When asked whether the US would be interested in joining a low-carbon ‘club’ of nations as a CBAM alternative, he said the US-created Major Economies Forum is “a kind of carbon club” in the sense that these 20 countries represent 80% of global emissions and said the US would be willing to discuss further at a summit to discuss increased mitigation next April.

A ‘better’ belt? – Politico reports further about Kerry’s trip, which includes visits to Paris, London, and Brussels. Kerry explained that one goal is to expand on the $8.5 bln Just Energy Transition Partnership struck with South Africa to strike similar public-private deals with big emerging economies such as India and Indonesia. This would involve a teaming up of Western global investment programmes as an alternative to China’s Belt and Road infrastructure initiative: namely the EU’s Global Gateway, the US’s Build Back Better World and the UK’s Clean Green Initiative.

Profits over planet – MSCI dominates the ESG ratings business, with the sale of these investments now the fastest-growing segment of the global financial-services industry, thanks to marketing built on dire warnings about the climate crisis, wide-scale social unrest, and the pandemic. Yet there’s virtually no connection between MSCI’s “better world” marketing and its methodology that doesn’t even count a company’s emissions. That’s because the ratings don’t measure a company’s impact on the Earth and society. MSCI’s focus is profitability. That’s why consideration of GHG emissions is a significant factor for regulated utilities but not a factor at all in the score of McDonald’s. (Bloomberg)

EMEA

Pipeline dilemma – Poland’s foreign minister on Friday reiterated Warsaw’s opposition to the Nord Stream 2 gas pipeline and its expectations for reparations for World War Two, as Germany’s new head of diplomacy visited the country for the first time, Reuters reports.

ASIA PACIFIC

Doing better – Japan emitted 1,149 MtCO2e in 2020, according to preliminary data released by the environment ministry on Friday. That’s a 5.1% cut on the previous, largely due to economic impacts from the pandemic, and takes Japan 18.4% below FY2013 levels. Under the Paris Agreement, Japan has pledged to cut emissions 46% below 2013 levels by 2030.

Green ambassador – The boss of Andrew “Twiggy” Forrest’s iron ore giant Fortescue Metals Group is standing aside as the company continues its transition to a green energy and resources group, News.com.au reports. On Friday it was announced chief executive Elizabeth Gaines would leave the top job after nearly four years, but will remain on the board as a non-executive director. She will lead the search for a replacement chief executive and continue to act as Fortescue’s “global green hydrogen brand ambassador”.

Climate capital – Kuala Lumpur has launched a blueprint to achieve its carbon neutral city target by 2050, The Star reports.The blueprint called Kuala Lumpur Climate Action Plan 2050 was developed to identify all short-, medium- and long-term climate action plans. The federal territories minister, Datuk Seri Dr Shahidan Kassim, said five main strategies were outlined in the blueprint — mobility and infrastructure; green city adaptation; energy efficient and climate- proof buildings; smart waste management; and disaster management.

VOLUNTARY

Getting stuck in – The Ontario Teachers’ Pension Plan Board has taken a minority stake in Australian carbon offset project developer GreenCollar Group, becoming the company’s second minority-owner after US-based investment firm KKR made a similar move in 2019. Through its trading arm Terra Carbon, GreenCollar is the biggest seller of offsets to the Australian government, but the funds from Ontario Teachers’ will go towards increasing its presence abroad, the company said in a statement.

I’m net lovin’ it – McDonald’s has opened its first-ever net zero restaurant, which the company says is a “blueprint” for future branches. The new branch, located in the UK in Market Drayton, Shropshire, has been designed to meet net zero emissions standards in both its construction and everyday operations. Recycled materials feature heavily in the site, such as kerb stones made from recycled plastic bottles, a drive-thru lane made from recycled tyres, and building cladding made from recycled IT equipment and white household goods. It also uses renewable power from two wind turbines and has 92 square meters of solar panels to reduce the amount of energy drawn from the grid. The walls are insulated using British sheep’s wool, wall signs in the branch are made from used coffee beans, and recycled polystyrene cups and potato starch are used in the wall art.  The company uses offsets to neutralise any unavoidable emissions. The fast food giant will continue serving beef on its menu at the net zero branch, as it does at all its other restaurants. (Independent)

SCIENCE & TECH

Maersk unveiled – Danish container ship operator has revealed some of the details of its new 16,000 teu methanol-fuelled box ships ordered at Hyundai Heavy Industries, Shipinsight reports. According to Maersk, the design is unique to the industry and allows a 20% improved energy efficiency per transported container, when comparing to the industry average for vessels in this size. Additionally, the entire series is expected to save around one million tonnes of annual CO2 emissions, offering our customers carbon-neutral transportation at scale on ocean trades.

AND FINALLY…

An Almaty crash – A squeeze in Kazakhstan’s coal-based power supply has pushed the government to place big limits on the energy-intensive Bitcoin mining industry. The rapid reversal has eliminated one of the cheapest places to mine the cryptocurrency after China cracked down on the practice. By August, Kazakhstan had become the second-largest Bitcoin mining country in the world after the US, but come October the government stepped in as the country was experiencing power shortages as about 50 registered cryptocurrency mining data centres were consuming almost 700 MW while unregistered operations were thought to need 250 MW. (Bloomberg)

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