CP Daily: Monday April 4, 2022

Published 04:55 on April 5, 2022  /  Last updated at 04:55 on April 5, 2022  /  Newsletters  /  No Comments

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

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IPCC outlines solutions needed as 1.5C warming goal almost out of reach

The final part of the IPCC’s latest climate science trilogy was approved and published by 195 governments on Monday, outlining solutions needed to change the course of our current dire 3C+ warming trajectory including scenarios for relying on natural and engineered carbon removals.


Pennsylvania RGGI regulation set for publication after Senate veto override fails

Pennsylvania’s GOP-controlled Senate on Monday failed to overturn Governor Tom Wolf’s (D) veto of a resolution that would block the state’s RGGI-modelled cap-and-trade regulation, meaning the programme could take effect starting in July.

Pennsylvania firm seeks ETF linked to global carbon markets index

A Pennsylvania-based investment manager on Friday submitted a filing for an exchange-traded fund that will track a global carbon market index measuring the performance of four international cap-and-trade programmes.


MEPs expected to approve extension of strengthened MSR, EU nations trail

The European Parliament is expected to pass the first proposal of a mammoth climate package in a plenary vote on Tuesday, with a late Monday debate broadly reflecting lawmaker willingness to back Brussels’ line on reforming the supply-curbing MSR.

Euro Markets: Carbon unchanged amid lacklustre trading as energy markets retreat amid gas ban talk

Carbon prices ended little changed despite a relatively strong auction on Monday, while energy retreated as worries over Russia’s demand for payment in rubles faded even while EU leaders spoke of ramping up sanctions against Moscow over allegations of war crimes.

Statute of limitations leads UK court to reject carbon trading fraud claim against London brokers

A British court has dismissed the final claims in a £26 million carbon trading fraud case against a London-based brokerage after the judge ruled the claimants – despite clear early warning signs – waited too long to file suit.

EU member states two-thirds of the way through 2022 EUA allocations -data

EU member states are now two-thirds of the way through the 2022 free carbon allowance allocation cycle, according to official data, while countries handed out a further 6.26 mln EUAs for 2021.


South Korea looking to fund Article 6 pilot projects

South Korea is calling for proposals for demonstration projects under Article 6.2 of the Paris Agreement that can help it meet its international climate obligations.

Australia’s Victoria seeks private partners in A$31 million restoration project

The Victorian state government has put the call out for expressions of interest from private developers to partner in a programme that aims to restore 20,000 hectares of private land for carbon capture and wildlife restoration purposes.

Australia Market Roundup: AgriProve continues to go big on soil carbon as spot price still stuck

AgriProve Solutions have registered 10 more soil carbon projects across South Australia to begin being issued Australian Carbon Credit Units (ACCUs), according to the latest regulator data update.


VCM Report: “Green shoots of recovery” for VERs, as Q1 retirements spike

Buying interest for exchange-traded, standardised voluntary emissions reduction (VER) contracts picked up over the last week as nature-based credits led a market-wide rebound after several weeks of uncertainty and price consolidation.


Carbon price for shipping can unlock low carbon spend in developing economies, report says

The use of market-based measures such as carbon pricing for the shipping industry would generate annual revenue between $40-80 billion by 2050, enabling enough funds for the decarbonisation of the hard-to-abate sector while also providing a source of climate finance for less developed economies, according to a report from the World Bank.


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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



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


Counting the cost – Europe’s ambitious timetable for building its way out of a dependence on Russian energy faces potential delays and billions of dollars in extra costs as the war in Ukraine makes steel, copper and aluminum scarce and more expensive, Bloomberg reports. Steel, copper and aluminium each touched records in the past 12 months, and the Bloomberg Commodity Spot Index jumped 46% during the same period. The spikes threaten to slow such undertakings as the EU’s blueprint to almost triple wind and solar capacity this decade — a colossal investment that could require about 52 Mt of steel alone and result in infrastructure costs be about 20% higher than before the war.

Not playing Baltic – The head of Latvia’s natural gas storage operator announced that the Baltic EU states were no longer importing Russian gas, a decision made in reaction to the Kremlin’s decision to invade Ukraine, Euractiv reports. The Baltic market was currently being served by gas reserves stored underground in Latvia, while Lithuania was the first EU country to completely stop Russian gas imports at the end of last week.

Border bluster – The UK should unilaterally impose a carbon border adjustment mechanism (CBAM) to penalise companies and countries trying to evade responsibility for cutting emissions, according to the cross-party Environmental Audit Committee of MPs. The UK finance ministry is understood to be wary of imposing CBAMs, as they could increase the price of some goods at a time when consumers are already facing a cost-of-living crisis and there are also fears in government that this would set back attempts by ministers to forge post-Brexit trade deals around the world. (The Guardian)

Splitting mechanism – Tenants living in well-insulated homes in Germany will have to shoulder the lion’s share of their CO2 costs for heating, while landlords must cover most of the bill in inefficient buildings. The less CO2 a building emits, the higher the proportion tenants pay, according to a tiered model agreed for the country’s nEHS carbon pricing system by the economy, buildings and justice ministries, which said the split is socially fair and will bring a boost to emission reduction efforts in the buildings sector, which is lagging behind in the country’s energy transition. On average, the splitting mechanism will save tenants between €12-72 per year, according to price comparison website verivox, reported newspaper Tagesspiegel. Consumer advocacy groups welcomed the agreement but criticised that it will only apply from next year even though the mechanism has been in place since the start of 2021. (Clean Energy Wire)

InvestEU – Following the signature of the so-called InvestEU Guarantee Agreement between the European Commission and the European Investment Bank (EIB) in March, the InvestEU Investment Committee confirmed on Apr. 1 that the guarantee for EIB financing would total €1.9 bln, the Commission said on Monday. The backed investments will support clean energy, education, improved internet connection, water and wastewater infrastructure. The InvestEU programme was established to provide the EU with crucial long-term funding in support of a sustainable recovery, helping mobilise private investments for the EU’s policy priorities, such as the European Green Deal and the digital transition. The first projects to benefit from the new EU guarantee fall within InvestEU’s social investments and skills window and sustainable infrastructure window. The financing backed by the EU guarantee will support investments across the EU, including in Finland, Greece, Ireland, Italy, Poland, Portugal and Spain, the Commission said. The InvestEU programme will provide a €26.2 bln EU budgetary guarantee to support finance and investment operations, and aims to attract public and private financing to mobilise at least €372 bln in additional investment by 2027. The EIB Group will implement 75% of the EU budget guarantee.


Viva hydrogen – Shell fuel supplier Viva Energy has made a huge step into what it believes to be the future with plans to open a hydrogen refuelling station in the Australian city of Geelong, Goauto reports. Its “New Energies Service Station” will from late next year offer electric vehicle (EV) charging along with public refuelling of hydrogen-fuelled trucks and buses. The Geelong station will source its hydrogen from Viva’s sustainable manufacturing facility, the A$43.3 mln Geelong Energy Hub that includes a two-megawatt electrolyser to make green hydrogen using recycled water. Viva said in a statement to the Australian Securities Exchange that the project will provide the commercial deployment of hydrogen fuel-cell electric vehicles “in a cross-section of industries that can’t be easily decarbonised”.

Coal exit – The Philippines’ Rizal Commercial Banking Corporation (RCBC) said it will zero out its exposure to coal-fired power plant projects by 2031 and instead focus its lending services on renewable energy projects, PowerPhilippines reports. RCBC President and CEO Eugene Acevedo said the move is part of the bank’s “net zero revolution,” adding that businesses need to double their efforts to achieve it. The bank had announced in December 2020 that it will stop funding new coal plants in the country, though no date was mentioned back then. RCBC’s pronouncement followed the Department of Energy’s moratorium on the construction of new coal plants, which it imposed in October that year. RCBC Corporate Banking Group head Elizabeth Coronel said that the bank is in the process of closing funding deals for solar, hydro, and geothermal projects with a combined capacity of 1.6 GW. These are expected to be completed in the next two years. The bank has funded a total of 3.1 GW of renewables projects since 2012.

Hydrogen trio – State-run Indian Oil Corporation Ltd (IOCL), engineering major Larsen & Toubro (L&T) and clean energy company ReNew Power have signed an agreement to form a joint venture to collaborate for green hydrogen, Moneycontrol reports. The three companies will hold equal stake in the joint venture. Around the same time, L&T has entered into a binding contract with IOCL to form another joint venture with equity participation to manufacture and sell electrolysers, used in the production of green hydrogen. In February, the Indian government announced the first part of the national hydrogen mission policy on green hydrogen and green ammonia, aimed to boost production of hydrogen and ammonia using renewable energy.

Scomo offsets emissions to visit Bojo– The Australian government purchased A$20,000 ($15,079) worth of ACCUs to offset Prime Minister Scott Morrison’s trip to the G7 Leader’s Summit in Cornwall last year. Seven News reports that an official from Department of Prime Minister and Cabinet told senate estimates that the purchase was made at the request of the UK government. According to Australian Finance Minister Simon Birmingham, the request was made to all G7 attendees, not just the Australia government. Australia is not part of the G7, however Morrison was invited to last year’s talks as a guest, in what was broadly perceived as a bid by the UK government to pressure Australia to make a more ambitious attempt at tackling climate change and commit to a net-zero by 2050 target.


Four-year plan – Ontario plans to temporarily reduce taxes on gas and diesel, but it will only take effect after the June provincial election. The Progressive Conservative government introduced legislation on Monday that, if passed, would lower the gas tax by 5.7 cents per litre and the fuel tax – which includes diesel – by 5.3 cents per litre for six months. The change would take effect on July 1 and end on Dec. 31. Ford first promised to cut the provincial gas tax by that amount nearly four years ago, during the 2018 election campaign. (CTV News)

Concerned citizen – Sen. Joe Manchin said Monday that he is “deeply concerned” about the new climate disclosures proposed by the US Securities and Exchange Commission. In a letter to the SEC, the West Virginia Democrat said that the proposals go against the regulatory body’s stated mission, and that such policies will add “undue burdens on companies,” especially in the fossil fuel industry. Under the proposed rules, companies would be required to report on GHG emissions, climate-related targets and goals, as well as how climate risks impact their business. Manchin said the proposed changes are unnecessary for several reasons, including that nearly two-thirds of companies in the Russell 1000 index release sustainability reports. But these reports differ widely across companies. At present, companies can largely choose what information is reported and how it’s reported. Climate data can also be challenging to collect and verify. (CNBC)


Sound move – Agricultural input manufacturer Sound Agriculture is partnering with oil giant Shell to explore the launch of a carbon market for farmers. Sound announced the feasibility study last month, which it says will measure the economic and environmental impacts of reducing ag-related nitrous oxide (N2O) emissions. The companies will look at the possibility of creating a scheme for reducing on-farm N2O. As part of the study, Sound said it aims to “remove risk” for farmers by underwriting yield loss — and offering technical assistance from their agronomists throughout the season. Shell will support the project through funding and technical expertise to improve N2O field sample monitoring and validation. Sound claims its SOURCE input activates the soil microbiome to give corn and soybeans access to more nitrogen and phosphorus — allowing farmers to apply less fertiliser and thereby reducing N2O emissions. The company said its product can reduce synthetic fertiliser use by up to 50 pounds per acre while improving yield. In a statement, Sound said human-caused N2O emissions have increased 30% in the past 40 years, with fertiliser playing a major role. (Michigan Farm News)


Your loss – Flood, fire, and drought fuelled by climate change could take a massive bite out of the US federal budget per year by the end of the century, the White House said in its first ever such assessment on Sunday. The Office of Management and Budget assessment, tasked by President Joe Biden last May, found the upper range of climate change’s hit to the budget by the end of the century could total 7.1% annual revenue loss, equal to $2 trillion a year in today’s dollars. The analysis found that the federal government could spend an additional $25 bln to $128 bln annually on expenditures such as coastal disaster relief, flood, crop, and healthcare insurance, wildfire suppression, and flooding at federal facilities. The OMB said increased wildfires could boost federal fire suppression costs between $1.55 bln to $9.6 bln annually. Nearly 12,200 federal buildings and structures could be flooded as seas rise with replacement costs of nearly $44 bln. (Reuters)

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