CP Daily: Thursday June 2, 2022

Published 02:07 on June 3, 2022  /  Last updated at 02:07 on June 3, 2022  /  Newsletter  /  No Comments

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

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TOP STORY

EU Parliament set to back full ETS entry for shipping, as NGOs highlight loopholes

The European Parliament is likely to back the entry of all shipping emissions into the EU ETS from 2024 in a vote next week, stakeholders said, with lawmakers replicating much of a preliminary Committee position but also crafting exemptions that would substantially weaken the carbon price signal for some.

VOLUNTARY

Offset integrity debate grips US regulator’s voluntary carbon market hearing

Questions regarding offset integrity and double counting featured prominently on Thursday as the US Commodity Futures Trading Commission (CFTC) solicited expert feedback on its role in governing the voluntary carbon market.

REDD+ offset marketer launches plan to generate 800 mln VERs by 2030

The US-based marketing arm of a REDD+ project developer on Thursday released a forest conservation plan to develop a global portfolio of community-based forest conservation projects, expected to generate 800 million voluntary carbon credits by the end of this decade.

Dutch carbon offset firm in €2-mln green bond fundraise

A Dutch carbon offset firm has launched a €2-million capital raise via green bonds.

CEO of US agriculture offset firm steps down

The CEO of a major US-based agricultural carbon offset firm has stepped down.

ASIA PACIFIC

CN Markets: CEA volume rebounds, but sentiment still weighed down by policy stagnation

A handful of OTC block trades pushed volumes in China’s emissions market over the past week above 1 million, but the price remained unchanged and market outlook tempered by the overall policy situation.

Chinese forest & paper firm secures funding to pursue leading carbon market role

The carbon offset subsidiary of a Chinese forestry and paper company has secured a 200-million yuan ($30 mln) bank loan at a preferential interest rate to develop forest carbon projects across a number of domestic and international offset standards.

Australian research questions soil carbon fundamentals

An Australian researcher has called on the soil carbon methodology to be barred from generating carbon credits, arguing the practices used are not additional, have limited impact, and place an unnecessary cost burden on landowners.

Australian developer eyes PNG blue carbon project under IPCOS

An Australian project developer on Thursday announced plans to develop a blue carbon project in Papua New Guinea that it says can generate almost 10 million carbon credits over the scheme’s lifetime, the first concrete project plan to emerge under the Indo-Pacific Carbon Offset Scheme (IPCOS).

Telstra retires 1.5 mln CERs to hit carbon neutral target

Australian telecoms giant Telstra has retired almost 1.5 million CERs from three Indian wind power projects that will go towards its annual carbon neutral certification under the Climate Active programme.

AMERICAS

NA Markets: CCA prices notch 5-mth high after Q2 auction, RGGI ticks up before June sale results 

California Carbon Allowance (CCA) values rushed to highs not seen since January this week on the heels of a bullish May auction result and heightened speculative activity, while RGGI Allowance (RGA) prices ticked up as the power sector programme held its own Q2 sale.

EMEA

Romania advances its coal exit by another two years to 2030

Romania has published a draft emergency law outlining a schedule for the phaseout of all its remaining coal power capacity by end-2030, two years earlier than it set out just eight months ago as the country ramps up renewables investments.

INTERNATIONAL

Renewables players, automaker sign up to net zero steel initiative

A group of key industrial players have joined SteelZero, adding momentum to the initiative as it has just published a set of policy guidelines to help speed up the transition towards the use of low carbon steel.

Former international carbon markets negotiator joins Bezos Earth Fund

A former EU negotiator for carbon markets under the Paris Agreement has joined Amazon founder Jeff Bezos’ vehicle to fight climate change and protect nature.

WE’RE HIRING!

Greater China Environmental Markets Correspondent, Carbon Pulse – Greater China

Carbon Pulse is seeking a Greater China Environmental Markets Correspondent.

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CONFERENCES

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

Climeworks’ DAC Summit – June 30 in Zurich/online: Carbon removal and Direct Air Capture technologies have been experiencing a watershed moment in recent months.   Scientists have deemed them indispensable in the latest IPCC report, governments have stepped up their funding and policy efforts, and investors have committed large amounts to scale up. Where does the industry stand today, and what are its recent most promising developments? What are the requirements and immediate next steps for scaling up at the required speed? And when the industry works together, what could the future look like? The Summit provides a unique opportunity to get answers to these questions from DAC insiders and experts. Register here

Argus Carbon Markets and Regulation Conference – June 30-July 1 in Lisbon, Portugal: The event will deliver critical updates on regulation, the future of the EU ETS, and key developments in the voluntary carbon markets space, amongst other topics that will be tailored for the European and global audience. Featuring panel discussions, fireside chats, presentations, and collaborative problem-solving sessions. Participates will gain knowledge and insight from expert opinions and take advantage of the opportunity to network and discuss with their industry peers in-person for the first time in two years. CP Daily subscribers can get a 15% discount by registering with the code CARBONPULSE15: https://bit.ly/3t4CmH6

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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

INDO-CAN can – India and Canada joined efforts on climate action, environmental protection, and conservation with an MOU signed between environment ministers at the Stockholm+50 event on Thursday. Both countries have agreed to exchange information and expertise in areas such as increasing renewable energy capacity, decarbonising heavy industries, reducing plastic pollution, supporting the sound management of chemicals, and ensuring sustainable consumption, while pursuing opportunities to advance economic growth and job creation. The agreement builds on existing cooperation between both countries as members of the High Ambition Coalition for Nature and People, which advocates for world leaders to conserve 30% of the world’s marine and terrestrial areas by 2030.

EMEA

Flight risk – The EU ETS could deliver up to 53% more emission reductions for aviation in Europe if applied to all departing flights compared to the current plan, and 113% more reduction if extended to both incoming and outgoing flights, according to a study by T&E and Carbon Market Watch. The EU ETS currently only applies to flights within the European Economic Area (EEA). The report comes ahead of next week’s crunch EU Parliament vote on ETS reforms and as lawmakers are still negotiating potential compromise. A preliminary vote by the Parliament’s environment committee set out a tighter regime for airlines, including rapidly eliminating free allowances and a partial inclusion of international flights.

Good quarter – Warm weather and energy saving measures in the context of rising prices exacerbated by Russia’s war on Ukraine have reduced Germany’s energy consumption by about 2% in Q1 of 2022, energy data service AGEB has said. At the same time, Europe’s largest economy saw its GDP 4% higher than during the same period a year before, which had an increasing effect on consumption. The biggest drop in consumption – at nearly 50% – was registered for nuclear power as a result of the decommissioning of several reactors at the end of last year. Natural gas consumption was 9% lower than in 2021 due to warmer weather and lower imports from Russia. But several forms of energy generation also saw an increased demand in Q1: hard coal consumption climbed by 5.4% and oil by 10%, fuelled by a much higher level of mobility than in 2021. Likewise, lignite use grew by 1.5%, but renewables jumped by about 8.5%, AGEB said. (Clean Energy Wire)

ASIA PACIFIC

For when you need it – A 300 MWh compressed air energy storage system capacity has been connected to the grid in Jiangsu, China, while a compressed air storage startup in the country has raised nearly US$50 mln in a funding round, Energy Storage News reports. Chinese state media reported that the large-scale project in Jiangsu province’s city of Changzhou has become operational and connected to the grid in late May. The system stores air compressed using electricity in vast salt caverns a kilometre below ground level. When power is needed, the air is released to drive turbines. The project has been co-developed by China National Salt Industry Group, electricity generation company China Huaneng Group, and Tsinghua University. Officially named Jiangsu Jintan Salt Cavern Compressed Air Energy Storage Project, the system can provide 60 MW of peak shaving energy for the local grid and its roundtrip efficiency is more than 60%. It could be expanded considerably in future.

Greener power – Malaysia’s biggest utility, Tenaga Nasional Bhd (TNB), through its new energy division, is striving to future-proof its business by expanding its renewable energy (RE) footprint globally through mergers and acquisitions, asset development, and establishing strategic partnerships with leading RE players, Malay Mail reports. Its wholly-owned subsidiary, Vantage RE, launched in July 2021, is currently operating and managing TNB’s portfolio of RE assets in the United Kingdom and Europe. In Oct. 2021, Vantage RE enhanced TNB’s RE portfolio and net-zero goals with the acquisition of a 49% stake in an offshore wind farm from EDF Renewables, and has also completed its 100% acquisition of a 97.3 MW onshore wind portfolio in the UK in April. Its local subsidiary, TNB Genco, currently generating 50% of Malaysia’s power, is working on life extensions of existing hydropower plants and power stations which will utilise low-carbon fuel ammonia as co-firing technology, and carbon capture at its coal power stations to reduce greenhouse gas emissions intensity.

Plugged in – SK E&S, the energy unit of South Korean conglomerate SK Group, has teamed up with US-based hydrogen fuel cell maker Plug Power, to supply clean, green hydrogen, KoreaBizwire reports. SK Plug Hyverses, a joint venture between the two companies, said it inked a deal with South Korea’s state-run gas company Korea Gas Corp. to supply a 1-MW-class polymer electrolyte membrane (PEM) water electrolysis facility that extracts hydrogen by electrolysing the water.

Greening – China will aim to ensure that its grids source about 33% of power from renewable sources by 2025, up from 28.8% in 2020, the state planning agency said on Wednesday in a new “five-year plan” for the renewable sector. China’s total renewable energy consumption is set to reach about 1 bln tonnes of standard coal equivalent (TCE) by 2025, as the country bids to raise the share of non-fossil fuels in total energy use to 20%, the National Development and Reform Commission (NDRC) said. (Reuters)

AMERICAS

GOP on climate – US House Republicans have unveiled their climate and green energy strategies ahead of the midterm election on Nov. 8. The strategy would promote US oil and gas, as well as mining for critical minerals used renewable energy machinery. It calls for increasing production of all types of energy and sets no greenhouse gas targets, all while emphasising a drop in gasoline prices.  Climate change groups have blasted the plan, which is proposed as a method of defeating Russia and China in the energy space. Republicans have long argued that US oil and gas is cleaner than that from other countries. (The Hill)

Water protections – The US EPA is once again allowing Indigenous tribes, states, and municipalities to challenge development projects that would have harmful effects on climate change through the federal clean water protection act. Those bodies lost the right to challenge projects on direct climate impacts through the federal water legislation under the Trump presidency. The National Tribal Water Council welcomed the decision.

New York’s biggest – The state of New York on Thursday announced has signed contracts to procure 22 large-scale solar and energy storage projects, the biggest land-based renewable energy investment in the state’s history. The power generation sites will be distributed throughout the state and power 620,000 homes for 20 years, according to Governor Kathy Hochul. New York has a goal of operating on 70% clean energy by 2030, mostly relying on imports from Quebec hydropower up to now.

Data Canada – The Canadian ESG market faces the potential of greenwashing due to lack of data according to the Institute for Sustainable Finance. A survey of market professionals including asset managers and researchers found just 6% were “very satisfied” about their ability to access sustainability data. The survey found 45% were “somewhat satisfied,” 44% said they were “not very satisfied”, and 5% reported being “totally dissatisfied.” The inconsistency of GHG emission counting, even among companies pledging to become net zero, is also a stumbling block. (Bloomberg)

Best practice payment – A five-year research project that will work to determine best-practices when it comes to carbon sequestration in perennial forage and pastures has received a C$3.2 mln grant from the governments of Canada and Saskatchewan. The project will focus on identifying carbon stocks within forage acres throughout Saskatchewan and then further decipher if certain farming practices positively or negatively affect those stocks. (realagriculture)

VOLUNTARY

Yellow Ledbetter – CarbonBetter, a minority-owned sustainability and energy logistics firm, on Thursday announced the launch of CarbonBetter Certified Offset (CBCO) Portfolio 22-1, which offers businesses immediate access to hand-picked and fully vetted carbon credits to offset Scope 1-3 GHGs. CBCO Portfolio 22-1 purchasers will have carbon credits from four projects on three registries (Verra’s Verified Carbon Standard, the American Carbon Registry, and the Climate Action Reserve) retired on their behalf after completing a single transaction with CarbonBetter. These 2020-21 vintage credits include a run-of-river hydroelectric power plant, an improved forest management project, an N20 abatement project, and a wind farm.

SCIENCE & TECH

Toe the (Maersk) line – Svitzer, a leading global towage operator and part of shipping giant A.P. Moller-Maersk, has unveiled its decarbonisation strategy that will see the company become fully carbon neutral by 2040, Hellenic Shipping News reports. The strategy will see Svitzer decarbonise in two phases. Firstly, Svitzer is aiming to reduce the CO2 intensity of its entire fleet by 50% by 2030. This will pave the way for fully carbon neutral operations just ten years later, in 2040, which is in line with A.P. Moller-Maersk’s own climate ambition. Svitzer will measure progress against a 2020 baseline, which saw the company’s fleet of approximately 400 vessels emit 280,000 tonnes of CO2, or the same amount as 110,000 cars.

AND FINALLY…

Hy risk – A world desperate for a climate-friendly fuel is pinning its hopes on hydrogen, seeing it as a way to power factories, buildings, ships and planes without pumping carbon dioxide into the sky. But now scientists are warning that hydrogen leaked into the atmosphere can contribute to climate change much like carbon. According to Bloomberg, depending on how it’s made, distributed and used, it could even make warming worse over the next few decades, even if carbon poses the bigger long-term threat. Any future hydrogen-based economy, they say, must be designed from the start to keep leaks of the gas to a minimum, or it risks adding to the very problem it’s supposed to solve. Some ideas now being tested, like shipping hydrogen in pipelines built to hold natural gas or burning it in individual homes, could cause an unacceptable level of leaks. Hydrogen doesn’t trap heat directly, the way CO₂ does. Instead, when leaked it sets off a series of chemical reactions that warm the air, acting as an indirect greenhouse gas. And though it cycles out of the atmosphere far faster than CO2, which lingers for centuries, it can do more damage in the short term. Over 20 years, it has 33 times the global warming potential of an equal amount of CO2, according to a recent UK government report. Over hundreds of years, carbon is more dangerous, due to its longevity.

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