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TOP STORY
PREVIEW: Q1 RGGI auction seen less likely to release additional allowances after global carbon downturn
The quarterly RGGI auction on Wednesday is primed to clear close to a new all-time high for the fifth consecutive sale, though a significance price retracement in recent days has cooled traders’ views that bids will trigger additional volume from the Cost Containment Reserve (CCR).
EMEA
Brussels seeks to expand ETS state aid rules, cut EU’s Russian gas dependency
The European Commission aims to use the full flexibility of its state aid powers to help the EU respond to surging energy costs, it said in its Energy Communication published on Tuesday, potentially allowing member states to expand the industries eligible to receive indirect ETS cost compensation.
Euro Markets: EUAs make biggest ever one-day gain as traders call market bottom
European carbon rose by its biggest ever margin in absolute terms, with prices clawing back the last five days of losses as traders appeared to call the market’s bottom at last week’s low of €55.
Experts advise lawmakers as UK considers new energy supply strategy
Lawmakers quizzed energy experts on Tuesday on how the UK can address energy security and affordability pressures while maintaining climate ambition, shedding light on the challenges for Prime Minister Boris Johnson’s promised energy supply strategy amid the Ukraine crisis.
Europe seen taking green hydrogen lead as positive factors coalesce
Hydrogen will play an increased role in decarbonisation as the fuel receives a boost in Europe from regulatory and policy support, greater cost competitiveness, as well as enhanced efforts to realise energy security goals, a conference heard this week.
INTERNATIONAL
Article 6 deal seen spurring growth in robust carbon markets worldwide
The approval of an international emissions trading rulebook under the Paris Agreement’s Article 6 last year will provide the framework needed for further growth in more transparent compliance and voluntary carbon markets, according to panellists speaking at an industry conference on Tuesday.
Coal powers global CO2 output to highest recorded level during 2021 -IEA
Global CO2 emissions spiked by 6% year-on-year to hit 36.3 billion tonnes in 2021 and record the highest ever annual total, as coal and gas consumption ramped up to meet rebounding global economic demand from the low levels seen in pandemic-struck 2020, according to an International Energy Agency (IEA) analysis released on Tuesday.
Big oil climate group “strives” for zero methane emissions by 2030
An oil and gas industry body representing the world’s largest oil companies on climate policy launched on Tuesday an initiative to eliminate its members’ methane emissions by 2030.
ASIA PACIFIC
AU Market: ACCUs plunge below A$30 in “punch drunk” market
Australian carbon credits fell another 18% on Tuesday as traders continued to reconsider the value of their ACCU positions after regulators decided to let project developers with offsets contracted to the government sell them on the market instead.
NZ Market: NZUs fall to 7-week low to fall in line with global carbon prices
New Zealand carbon allowances fell to their lowest level since mid-January in Tuesday trade, with international disruptions outweighing bullish signals from government policies.
AMERICAS
California power sector emissions decrease in January, though drought worsens hydro future
CO2 output from California’s electricity sector dropped year-over-year in January as renewables generation increased and fossil gas waned, though record low snowpack readings portend a dire outlook for the state’s hydro supply this year.
RFS Market: RINs plunge to 1.5-mth low as heating oil rips
US biofuel credit (RIN) values crashed beneath $1 on Tuesday as market participants pointed to a plummeting soybean oil-heating oil (BOHO) spread as President Joe Biden announced a ban on Russian oil and gas imports.
VOLUNTARY
Finnish company to launch blockchain platform for agriculture, forestry carbon offsets
A Finland-based company is launching a blockchain-based trading platform for tokenised offsets derived from regenerative projects certified by Verra, it announced Wednesday.
COMMENT
Blockchain for better: Untangling tokenisation and carbon markets
The Gold Standard remains open to partnerships in the fast-moving space of web3, but it is important to be mindful about which decentralised approaches to deploy in carbon markets, and how to deploy them, writes Sarah Leugers.
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Premium job listings
- Senior Carbon Market Analyst, Pact Capital – Switzerland/Dubai/Monaco/Remote
- Climate Change and Energy Advisor, Mineral Products Association – London
- Manager, Market Development, Family Forest Carbon Program, American Forest Foundation – Washington DC
- Northeast Director, Family Forest Carbon Program, American Forest Foundation – Northeast US
- Legal Director, Verra – Remote
- European Policy Director, International Emissions Trading Association (IETA) – Brussels
- Investment Analyst, Environmental Commodity Partners (ECP) – Mill Valley, California
- Managing Director, Verra – Remote
- Chief Communications Officer, Verra – Remote
- VP/MD, Carbon and Environmental Product Strategist, Macro Commodities Research, Goldman Sachs – London
- Product Manager, SustainCERT – Ideally Luxembourg/Amsterdam
- Senior Business Development and Key Account Manager, SustainCERT – Amsterdam
- Business Development Manager Environmental Markets, SustainCERT – Ideally Amsterdam/Europe
- Innovation Manager, SustainCERT – Luxembourg/Amsterdam/Remote
- Director of Value Change Initiative Partnerships, SustainCERT – Netherlands
- Certification Officer Value Chain, SustainCERT – Flexible (Ideally America)
- Certification Officer, SustainCERT – Asia (Preferably India)
- Sales Support Officer, SustainCERT – New York City
- Communications Manager, SustainCERT – Flexible (Ideally Amsterdam)
- Manager, Asia-Pacific, Verra – Remote
- Manager of Technology Solutions, Verra – Remote
- Chief Program Management Officer, Verra – Remote
- Manager, Climate Finance and Markets, Verra – Remote
Or click here to see all our listings
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CONFERENCES
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
City Week 2022: Resetting Priorities for a Better Future – Apr. 25-27 at London Guildhall: Now in its 12th year, City Week is the premier gathering of the international financial services community. Organised in partnership with the UK Government and leading City institutions, City Week brings together industry leaders and policy makers from around the globe to consider the future of global financial markets. Each day will address a specific theme, with Day 1 focussing on “Meeting the climate change challenge – the role of financial services in achieving net zero”. www.cityweekuk.com
Reuters Events: Global Energy Transition 2022 – June 14-15 in New York City: The conference unites CEOs and changemakers from the energy, industrial, and government ecosystems to shed light on the defining issue of our time, and help companies meet a uniquely difficult challenge. Over two days and five critical themes, we will define the future of energy, inspire a decade of action, and prepare the sector for challenges still to come, with diverse voices from around the world bringing passion and expertise to deliver a new path forward. Find out more by visiting the website today: https://bit.ly/35H7cgb
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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
More fish in the sea – Brookfield Asset Management is reviewing dozens of deals tied to climate action after Australian utility AGL Energy rejected a multibillion-dollar takeover, according to the firm’s Vice Chair Mark Carney. The Canada-based asset manager, which oversees more than $650 bln, has at least 50 potential transactions under review across a range of industries, Carney said Wednesday at an Australian Financial Review summit. Brookfield is no longer in active discussions with Sydney-based AGL over a proposal that aimed to accelerate the firm’s transition to net zero emissions by more than a decade, he said. “AGL is exactly the kind of transition we’re ready to do. If it’s not AGL, we’ll look elsewhere,” said Carney, a former Bank of England governor hired to strengthen the firm’s ESG investing. Brookfield sees a “target-rich environment” for deals linked to efforts to decarbonize the global economy, he added. An improved offer by Brookfield and billionaire Mike Cannon-Brookes valued AGL’s equity at about A$5.4 bln, and was rejected this week for being too low. The bidders had aimed to deliver a A$20 bln transition plan to close down AGL’s coal power plants faster and replace them with cheaper renewable energy. (Bloomberg)
EMEA
Bavarian wind – A senior minister of the southern German state Bavaria, has called on the federal government to remove bureaucratic hurdles at the EU level that delay financial support to a faster expansion of wind power and bioenergy installations in the state. The minister said Germany needs a quota for the south as states in the north of the country continue to be far ahead in the rollout of wind power. The minister criticised the EU for blocking wind subsidies due to competition concerns, effectively putting a brake on wind power expansion in the region. The German government is in favour of granting bidders in the south favourable conditions to encourage them to take part in national auctions, in which the lion’s share of new installations routinely goes to states in the north of the country. The concentration of wind power in the north can cause grid bottlenecks when flowing power to the demand-intensive south. (Clean Energy Wire)
Tough choices – Uniper has been told by Germany to boost natural gas imports even if it’s from Russia as it looks to meet demand, a sign of the tough choice for governments as they look to keep the lights on while also punishing Moscow for its war. Germany is asking the utility to keep energy flowing and guarantee supply, and there are no signals it should stop getting gas from Russia, CEO Klaus-Dieter Maubach said. The stance highlights the difficulties Europe faces in reducing its deep reliance on Russian energy, for which there are very few immediate alternatives. Meanwhile, German Economy and Climate Minister Robert Habeck said the country would be prepared if Russia decides to curb energy supplies, but warned the effects would be felt across all industrial sectors. “We will be able to deal with it – we have oil reserves for three months, and we can go with gas reserves through winter and summer,” he said following a meeting with the energy ministers of the German states. (Bloomberg)
ASIA PACIFIC
Ramping it up – Singapore will be reviewing its climate targets for 2030 this year as it looks towards setting more ambitious goals, Senior Minister Teo Chee Hean told parliament on Tuesday, according to the Straits Times. That announcement came just weeks after the city state said it will massively ramp up its domestic carbon tax in the coming years.
Offset as you go – Utility EnergyAustralia this week announced it had started construction of Tallawarra B, a natural gas-fired plant which it said will be the country’s first net zero emissions power station. In practice, that only means the company will buy offsets for all the emissions generated. But the plant will also be able to utilise a mix of hydrogen and gas, and EnergyAustralia has committed to buying 200 tonnes of green hydrogen each year from 2025.
Step forward – Australia’s Fortscue Future Industries and Airbus have signed an agreement to cooperate on decarbonising the aviation industry, the companies announced. Their ambition is to be able to deploy a green hydrogen-based aircraft by 2035, and initially they will look at green hydrogen regulations, infrastructure, and global supply chains in order to get the ball rolling.
AMERICAS
Account on it – Accounting for the capacity value of clean energy resources would lower costs and reduce emissions, think-tank RMI said in a report released Tuesday that evaluates options for including emissions-free resources in the US grid operator PJM Interconnection’s markets. Adding voluntary clean energy procurements to a centralised market could lower costs and emissions even more, according to the report. (Utility Dive)
Power pilot – Pacific Gas & Electric (PG&E) and General Motors (GM) on Tuesday announced a pilot aimed at using electric vehicles as on-demand home power sources in the utility’s Northern California service area. The two companies plan to test bidirectional charging technology – which would allow customers to send power from their vehicles to, for instance, a home – thereby enabling EVs to power essential home needs, while also contributing to electric reliability in PG&E’s footprint. (Utility Dive)
AND FINALLY…
High and dry – A new study reveals evidence that over three-quarters of the Amazon rainforest is losing resilience and may be approaching a critical tipping point. This loss in the ability to bounce back from disturbances such as logging or fires, as detected by satellite observations gathered between 1991 and 2016, indicates the Amazon may be nearing a transition into a dry savannah. The researchers derived these findings from a statistical analysis of satellite images of Amazon vegetation and said the resilience loss stems largely from deforestation for agricultural production and climate change. (Axios)
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