CP Daily: Wednesday February 23, 2022

Published 04:12 on February 24, 2022  /  Last updated at 04:12 on February 24, 2022  /  Newsletters  /  No Comments

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

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TOP STORY

INTERVIEW: Intergovernmental body targets first Paris emissions trade deal by year-end

An intergovernmental organisation that works with host countries on low-carbon development aims to secure its first Paris-compliant deal for an internationally transferred mitigation outcome (ITMO) by the end of 2022 from one of its 12 projects, a senior director told Carbon Pulse.

ASIA PACIFIC

Troubled past leaves market hesitant as developers ready large REDD projects in Papua New Guinea

Project developers are preparing a number of large REDD projects in Papua New Guinea, each capable of generating millions of offsets every year, though market participants are wary amid a long list of risks that have been associated with PNG forest carbon activities for over a decade.

Survey shows market participants expect modest, but steady growth in Chinese carbon prices

The price for Chinese carbon allowances is expected to almost triple by the end of the decade after an initial gradual increase to 2025, according to a price survey released this week.

New Zealand unlikely to need higher carbon price for the next decade under current ETS settings, analysts say

The combination of New Zealand’s historical CO2 permit surplus and new forestry investment at current carbon price levels means NZU demand will likely be met for the next decade even if the price doesn’t climb any higher, analysts said Wednesday.

AMERICAS

California provides glimpse of possible carbon market reform steps after Scoping Plan update

California government agencies on Wednesday largely punted their response to sweeping watchdog proposals to strengthen the WCI-linked cap-and-trade programme until after the forthcoming Scoping Plan update, though they did disclose some potential steps the state could take following the end-year finalisation of the climate strategy document.

Bluesource, Element Markets merge as carbon markets industry consolidation proliferates

North American offset project developer Bluesource and environmental commodities company Element Markets on Wednesday announced they will form a combined entity under the backing of a global impact investor, adding to the booming consolidation movement within the international carbon credit industry.

California offset issuance stays low, Quebec mints first credits in 8 months

The number of compliance offsets handed out by California regulator ARB through February is off to the slowest start in five years, while Quebec gave out its first WCI credits since June, according to government data published Wednesday.

RFS Market: RIN prices lift to 1-mth high on commodity complex, proposed RVO deadline

US biofuel credit (RIN) values raced higher this week amid rising feedstock prices, while traders also said further clarity regarding final Renewable Fuel Standard (RFS) quotas may also be providing support.

EMEA

Euro Markets: Carbon jumps more than €5 as specs re-enter market and energy prices forge higher

European carbon prices rose to their highest in more than a week as EUAs moved in line with broadly firmer energy markets, with tensions continuing to mount in Ukraine after Russia announced it would send troops into the separatist regions of Donbas and Luhansk.

Large European utilities report surge in EU ETS-covered fossil generation

Uniper and Endesa both announced a significant year-on-year increase in ETS-covered fossil fuel power generation for 2021, the firms said in financial results this week, with a strong rise in gas-fired output driving the growth as well as a surge in coal burn in the case of Uniper.

UPDATE – EU seeks to force large companies to check suppliers’ climate credentials -leaked draft

(Updates Tuesday’s article with detail on directors’ pay, more reaction from green groups and MEPs)

The European Commission aims to oblige big companies to align their supply chains with 1.5C global warming limits, according to a draft bill that could have an impact far beyond the bloc’s borders and even spur corporate demand for carbon credits.

INTERNATIONAL

Methane emissions from energy 70% higher than previously estimated, IEA says

Global methane emissions from energy-related activities are around 70% higher than what has been officially reported by governments, underlining the need for enhanced monitoring efforts and stronger policy action to drive down emissions of the potent greenhouse gas, the International Energy Agency (IEA) warned on Wednesday.

VOLUNTARY

Canada-based carbon credit fund seeks US Nasdaq listing

A Canadian-based carbon credit investment vehicle is seeking a listing on the US Nasdaq stock market, it announced Wednesday.

Verra’s nature carbon lead joins developer South Pole

One of the most senior staffers at standards body Verra is joining South Pole, with the offset developer and consultancy looking to broaden its technology-focused portfolio into nature as part of an ongoing expansion.

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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

CONFERENCE

North American Carbon World (NACW) 2022 – Apr. 6-8 in Anaheim, California – presented by the Climate Action Reserve: Learn, collaborate, and network on carbon markets and climate policy at NACW, North America’s largest carbon event. NACW features comprehensive and up-to-date information, key thought leaders advancing innovative climate solutions, and the best networking opportunities with colleagues in the business, government, nonprofit, and academic sectors. NACW will dive into the status and future of North American carbon markets, climate policies, innovative solutions, natural climate solutions, net zero pledges and beyond, transportation and LCFS markets. www.nacwconference.com

INTERNATIONAL

Pipelines to nowhere – A massive expansion of the global gas pipeline network threatens climate goals and creates a $485.8 bln stranded asset risk, according to a new survey by Global Energy Monitor (GEM). After a Covid-related drop in pipeline commissionings in 2021, the gas industry and gas-positive countries led by China, India, Russia, Australia, and the US are pushing ahead with plans to commission tens of thousands of kilometres of gas pipelines in 2022. This expansion is occurring despite the IEA warning that gas usage must peak within the next few years and that the world must quickly transition from fossil fuels to renewables. For 2021, GEM’s survey found that cancellations and delays in some parts of the world were offset by rapid expansions elsewhere, particularly in Asian countries, perpetuating a dangerous status quo incompatible with the IEA’s 1.5C net zero scenario. Globally there are 70,900 km of pipelines in construction, with an additional 122,500 km in pre-construction development. Together these would cost an estimated $485.8 bln in capital expenditure.

ASIA PACIFIC

Cash for fracking – Australia’s Coalition government has re-announced almost A$20 mln ($14.5 mln) for oil and gas company Empire Energy, a firm with links to the major governing Liberal party, just two months after a court ruled a previous issue of the grants was invalid, The Guardian reports. The federal resources minister, Keith Pitt, announced on Wednesday that three grants worth A$19.4m would be given to Empire Energy to incentivise exploratory drilling in the Northern Territory’s Beetaloo Basin, a region the Morrison government wants to open up as part of its gas-led recovery. The decision has prompted anger among environmentalists and Indigenous groups, who have said fracking the Beetaloo Basin would drive up Australia’s emissions by 13%. Last year minister Pitt intervened to prevent a loan of A$280 mln from the federal government’s Northern Australia Infrastructure Fund from being awarded to a wind power and battery project.

Green Alliance –  Norwegian Prime Minister Jonas Gahr Støre met with President Ursula von der Leyen and Executive Vice-President Frans Timmermans on Wednesday to reaffirm their joint interest in lowering carbon emissions, with a view to achieving domestic carbon neutrality by 2050. Norway, which is part of the European Economic Area (EEA) and participates in several key pieces of climate legislation such as the EU Emissions Trading Scheme (ETS), is supportive of establishing a Green Alliance with the EU, with this latter referring to coordinated development of green industry, renewable energy, green and low-carbon hydrogen and CCS. “Focus would, in particular, be on sustainable energy and industry, facilitating technologies and markets essential to speed up the green transition,” the Norwegian PM said. The EU and Norway are also discussing the next steps of international negotiations, reaffirming their commitment to the Paris Agreement, calling on all Parties to enhance their ambition ahead of COP27, the two parties said in a statement.

AMERICAS

Pacific pause – Two climate lawsuits out of Hawaii have been paused until the US Court of Appeals for the Ninth Circuit rules on the future of a suite of similar suits out of California. A panel of judges sat in Honolulu last week to mull whether those cases belong in state or federal court. But in a brief order on Tuesday, the judges said they’ll wait for three different judges to rule first on various climate lawsuits led by San Mateo, then decide whether their conclusions should apply to the Hawaii cases as well. The San Mateo case had advanced more quickly than the Hawaii one, but that panel has gone silent since July, when it declined to accept additional briefing on the matter. It’s unclear when those judges will rule. (Politico)

EMEA

Battery potential – The Sixth High-Level Meeting of the cross-stakeholder European Battery Alliance took place in Brussels to discuss the progress in developing the battery value chain in Europe, the European Commission said. The event saw the launch of a European Battery Academy that will be supported by a €10 mln EU grant. Among the priorities identified by the Commission, there was swift adoption of the Commission’s proposal for regulation on sustainable batteries and the diversification of sources of battery-related raw materials.

SCIENCE & TECH

Hydrogen takes off – Airbus and jet engine manufacturer CFM International are to partner on a hydrogen combustion demonstration project that will launch around 2025, S&P Global Platts reports. The partners aim to test a direct combustion hydrogen engine on the ground and in flight from the middle of the decade, ready for commercial service of zero emission aircraft by 2035. “This is the most significant step undertaken at Airbus to usher in a new era of hydrogen-powered flight since the unveiling of our ZEROe concepts in Sep. 2020,” Airbus Chief Technical Officer Sabine Klauke said. “By leveraging the expertise of American and European engine manufacturers to make progress on hydrogen combustion technology, this international partnership sends a clear message that our industry is committed to making zero-emission flight a reality,” he stated.

Fire future – Catastrophic wildfire events that devastate human land and ecosystems could become 30% more common by 2050 and 50% more common by 2100 under a medium emissions scenario, CNN reported. The findings come from a new report on “extraordinary landscape fires” from the UN Environment Programme involving more than 50 researchers from around the world. The projected increase could come as a result of global warming and land-use change, according to the report. (Carbon Brief)

AND FINALLY…

Who’s the new guy? – Luiz Fernando do Amaral was named as first CEO of the Science Based Targets initiative (SBTi), the template-setter for corporate climate action that seeks to rapidly expand the number of companies adopting Paris-aligned emissions goals. Amaral joins the SBTi from US think-tank WRI. A native of Brazil, Amaral joined WRI having previously worked as head of sustainability for South America at Rabobank and in a range of leadership positions at several high-profile sustainability initiatives, including as board member for Brazilian National Climate Change Fund. (BusinessGreen)

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