Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here

TOP STORY

EU secures LNG supplies with US deal, refrains from power market intervention

The West on Friday pledged to keep its climate efforts in place while attempting to ditch Russian fossil fuels, with EU leaders securing more US LNG supply but then only reaching a limited agreement to help curb rising energy costs after extended talks.

VOLUNTARY

Papua New Guinea governor says large REDD+ project is a scam, contract illegal

A large-scale REDD project in Papua New Guinea currently applying for Verra registration is a scam and the contract it has signed with landowners is illegal, according to the governor of the province where it is located.

Voluntary carbon trading platforms join forces in new pilot

Singapore-based exchange Climate Impact X (CIX) and settlement platform Carbonplace have teamed up to develop a voluntary carbon credit trading pilot that will establish the technical, legal, and operational framework for executing carbon credit transactions, the companies said in a release on Friday.

C-Quest Capital secures funding to scale up cookstove portfolio in Africa

US-based offset developer C-Quest Capital (CQC) has secured investment from an oil major and a global bank to scale up a cookstove project in Sub-Saharan Africa that it expects to generate 200 million carbon credits over the next decade.

Green investor to supply refugees with clean cookstoves to offset 1 MtCO2 over five years

A UK-based company that provides low-carbon commodity services will invest in providing 100,000 clean cookstoves for Rohingya refugees and host communities in Bangladesh, in a project that will generate 200,000 carbon credits annually.

AVIATION

Four repeat carbon credit programmes among latest CORSIA applicants

A quartet of carbon standards previously rejected by UN aviation body ICAO’s Council applied for eligibility to the global offsetting mechanism CORSIA along with three new applicants, according to documents published Friday.

EMEA

UK sets out plans to tighten carbon market to align with net zero goal

The UK has launched a consultation on possible changes to its emissions trading system, outlining long-flagged plans to steepen the rate of emissions cuts in line with the country’s 2050 net zero target as well as adding shipping.

Cheating pays: Study shows ships evading the EU ETS a profitable move in most cases

Evasive behaviour by shipping firms seeking to avoid emissions charges under the EU carbon market will be profitable in most instances, according to new research.

Mitsui deepens ties with Scottish DAC plant, plans removal credit sales

Japanese trading house Mitsui signed an MOU with UK technology firm Storegga on Friday, seeking to advance the deployment of direct air capture (DAC) in Scotland via the sale of carbon removals credits.

AMERICAS

California may begin workshops in summer on accelerating LCFS targets

California may kick off workshops this summer to increase the ambition of the state’s Low Carbon Fuel Standard (LCFS) emissions intensity reduction targets, as modelling shows more clean fuels need to come online at a faster rate, an official for regulator ARB said Thursday.

Canada tightens Clean Fuel Standard targets to account for other climate policies

Canada will increase the ambition of its GHG targets for the Clean Fuel Standard (CFS) over the majority of this decade in response to the country’s enhanced climate commitments and stakeholder worries about low-carbon fuel investments, officials said Friday.

Regulated parties move further towards flat CCA position, as speculators trim holdings

WCI compliance entities came closer towards eliminating their net short California Carbon Allowance (CCA) position this week, as speculators parted with some permits, according to US Commodity Futures Trading Commission (CFTC) data published Friday.

ASIA PACIFIC

Credibility hit puts Australian carbon regulator on the defensive amid calls for review

Australia’s Clean Energy Regulator on Friday defended itself against the claims that the national offset market lacks integrity, but the leading opposition party vowed to review the scheme if it wins the upcoming election.

Australia, NZ big winners if ocean-based carbon markets reach $1 trillion potential, report says

Australia and New Zealand are well-placed to take advantage of their access to the natural capital of the ocean to become key players in immature but rapidly emerging ocean-based carbon markets, a report has claimed.

CN Markets: CEAs stable despite signs that allocation cuts might be lower than anticipated

Chinese carbon allowances barely budged over the past week, with traders awaiting confirmation of talk that the government is considering making less significant reductions in allocation numbers than previously signalled.

ICYM

POLL: Analysts predict record rebound in EU ETS emissions in 2021

Verified emissions under the EU ETS likely rose by a record 8.3% last year, according to a poll of analysts, with output rebounding from the pandemic-induced drop in 2020 as utilities burned more coal and the European economy recovered.

———————————

Premium job listings

• Climate Change and Energy Advisor, Mineral Products Association – London
• Senior Technical Specialist, Blue Carbon Climate & Nature Linkages, Fauna & Flora International – Cambridge/Remote (UK)
• Director, Plastics and Sustainable Development Markets, Verra – Remote
• Northeast Director, Family Forest Carbon Program, American Forest Foundation – Northeast US
• Carbon Project Developer, ClimatePartner – Munich
• Carbon Project Developer, Nature-Based Solutions, ClimatePartner – Munich
• Senior Consultant Carbon Market Mechanisms, Carbon Limits – Oslo/Remote
• Portfolio Manager, Carbon Compliance Markets, Lombard Odier Asset Management – New York/London/Geneva
• Manager, REDD+ Technical Innovation, Verra – Remote

Or click here to see all our listings

———————————

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

———————————

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

PODCAST

Yale University’s Pricing Nature podcast is back for a second season.  The first three episodes are now out, with episode 7 on Paris Agreement’s Article 6, episode 8 is on what COPs can accomplish, and episode 9 on subnational climate action in the US. Listen via Substack, Apple Podcasts, Spotify, or wherever you get your podcasts.

EMEA

Too little too late? – Germany can become independent from Russian coal by autumn, virtually independent from the country’s oil by the end of 2022, and largely do without its natural gas by summer 2024, said economy and climate minister Robert Habeck. However, presenting an update on Germany’s energy supply security and the status of dependence on Russian deliveries, the Green party politician reiterated the government’s stance that it is too early for an immediate energy embargo. (Clean Energy Wire)

NGMI – Germany’s climate action measures lack a targeted approach to achieving its GHG reduction goals, the Court of Auditors has found in a special report. Based on the performance of the previous government before the end of 2021, the financial authority found that Germany cannot reach its goal of becoming climate neutral by 2045 with the measures currently in force. The federal government is currently funding over 100 support programmes for climate protection – with billions of euros. “For most programmes, however, it is not clear how much they contribute to the reduction of greenhouse gases,” the report found. Money also flows into ineffective and inefficient programmes, they said. “The goal must be to direct the billions of euros to where they will have the greatest possible impact,” Court of Auditors’ president Kay Scheller said. The auditors recommend that the government implements a systematic analysis of expenditures and revenues as to their climate impact, also examining any climate-damaging subsidies. (Clean Energy Wire)

How many problems aviation got? A LOT – The EU will not loosen sustainability targets for the aviation industry despite the Ukraine conflict and a surge in fuel prices, the bloc’s top transport official said on Friday. EU Commission Director General for Mobility and Transport Henrik Hololei added that it was not the moment to “make concessions on sustainability”, Reuters reported. Hololei was responding to a plea from the chief executive of Polish carrier LOT, Rafal Milczarski, who urged the EU to consider the massive increase in kerosene prices, the negative impact of the war on passengers’ willingness to travel and the side effects of sanctions on Russia. The industry’s participation in carbon emissions trading, which airlines use to pay for part of their greenhouse gas emissions, must be reconsidered or at least temporarily suspended, Milczarski added.

ASIA PACIFIC

Tax relaxed – Indonesia may delay rolling out its carbon tax on coal power plant emissions, officials said on Friday, as authorities have yet to finalise details a week before its April 1 start date. Under a sweeping law passed last year, Indonesia introduced a new levy for coal power plant operators of 30,000 rupiah ($2.09) per tonne for emissions above a set limit. Indonesia, the world’s eighth-largest GHG emitter, has launched the highly-anticipated tax as part of efforts to phase out the dirty fuel and reach net zero emissions by 2060. The tax will also be the basis for setting up a carbon market by 2025. Top officials are taking into account global “dynamics” like inflation and the war in Ukraine, Hadi Setiawan, an official with Finance Ministry’s Fiscal Policy Office told a virtual seminar on Friday. The world’s fourth-most populous country, where coal powers 60% of electricity use, has trialled the tax for 32 operators. Emissions caps were set at 0.918 tonne CO2e per MWh for power plants with a capacity above 400 MW, 1.013 tonne CO2e for plants with 100-400 MW and 1.094 tonne for mine-mouth plants with the same capacity. Further details of the trial were not available but a senior energy ministry official said the emission caps were not yet final. (Reuters)

A higher hy – In collaboration with the Global Green Growth Institute, Korean companies Samsung and Hyundai are planning the development of a $1.2 bln green hydrogen project at Sarulla, Indonesia, ThinkGeoEnergy reports. The project plans to use electricity from the geothermal operations in the Sarulla Block in North Sumatra, Indonesia. The goal is to supply the green hydrogen as green fuel for steel and cement making factories in the Sei Mangkei Industrial Zone, around 250 km to the north of the Sarulla plant.

Taiwinning – With Taiwan phasing out nuclear power by 2025, renewable sources are likely to gain traction to fill the power generation gap, according to data and analytics company GlobalData, Power Engineering International reports. The total renewable installed capacity amounted to 9.31 GW in 2021, having increased from 1.38 GW in 2010, at a compound annual growth rate (CAGR) of 19.0%. The government has been actively encouraging the use of renewable sources for energy generation to reduce the dependence on fossil fuels. However, renewable capacity is expected to increase from 9.3 GW in 2021 to 63.7 GW in 2035 at a CAGR of 14.7%.

AMERICAS

Greening gables – The Canadian province of Prince Edward Island (PEI) tabled its carbon pricing bill as promised on Thursday, CBC reports, outlining an increase to its carbon price applied to fuels such as gasoline. PEI had been under pressure to update its carbon pricing policy or risk the federal government imposing their backstop $50/tonne price on the small island province. In order to avoid this scenario, the bill will need to clear the legislative process next week ahead of the deadline of March 31. The bill, if passed, would mean an increase of more than four Canadian cents per litre of gasoline, a charge that would be incremental to the current 6.6 cent carbon levy currently charged. The province said that the federal government will allow PEI to continue to exempt home heating oil from its carbon levy for one more year. While a portion of the carbon pricing revenues would be recycled to households, a significant share would be used for government climate programmes, including renewable energy, electric vehicle infrastructure, public transit, and heat pump.

Making good on methane – Canada launched consultations on Friday on the design of strengthened regulations to help achieve its goal to reduce methane emissions by 75% by 2030 below 2012 levels in the oil and gas sector, aligned to the goal recommended under the IEA’s net zero roadmap and announced by Prime Minister Justin Trudeau ahead of the COP26 UN climate talks in November. “Reducing methane emissions from the oil and gas sector is one of the fastest, least expensive steps we can take to achieve our climate goals here in Canada and internationally under the Global Methane Pledge,” minister of the environment and climate change Steven Guilbeault said in a statement. With less than eight years to go, the government is seeking advice on topics ranging from technologies, regulatory design, and options for methane measurement, monitoring, and reporting. Yet the environment ministry maintains that the country is on track to meet its interim target of a 40-45% reduction by 2025 below 2012 levels. The consultations will close May 25.

AND FINALLY…

Dredge report – Maldives’ President Ibrahim Mohamed Solih is set to sign off a multimillion dollar land reclamation project this weekend, despite warnings of the destruction it will wreak on coral, fish and seagrasses. Developers plan to pump 7 million cubic metres of sand and mud from a central lagoon to build five four-star resorts and extend urban areas, despite environmental impact assessment warnings of “significant irreversible damages” to the lagoon and surrounding reefs. Campaigners have accused the government of hypocrisy and sacrificing the environment to economic development just like the big emitters it criticises at UN climate negotiations. (Climate Home)

Got a tip?  How about some feedback?  Email us at news@carbon-pulse.com