CP Daily: Wednesday July 20, 2022

Published 00:57 on July 21, 2022  /  Last updated at 01:03 on July 21, 2022  /  Newsletter  /  No Comments

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

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TOP STORY

PNG cancels large REDD+ project permits for Australian resource firm

An Australian resources company planning on turning 1.4 million hectares of forest in Papua New Guinea in to a series of  REDD+ projects has had its carbon permits revoked by the country’s National Forestry Authority (NFA).

EMEA

Brussels seeks 15% cut in EU gas use, emergency rationing of supplies

EU member states should curb their natural gas demand by 15% over the coming eight months from August, the European Commission said on Wednesday in a plan designed to increase the bloc’s resilience in the face of potential Russian gas supply disruptions.

Euro Markets: EUAs plunge most in six weeks as sellers weigh in after technical support breaches

EUAs fell by the most in six weeks on Wednesday after prices dropped below two key technical levels and triggered significant selling, while energy markets had mixed reactions to details of the European Commission’s plan to reduce gas demand ahead of the winter demand season.

Brokerage fined for off-exchange EU carbon trade

A London-based brokerage has been fined for breaking rules in booking an off-exchange EU carbon allowance trade.

ASIA PACIFIC

Analysts see China carbon price steadily tick up, but absolute cap could speed up process

Prices in China’s national emissions trading scheme will grow steadily in coming years, but by the end of the decade could be more than 50% higher if the government sets an absolute cap on ETS emissions compared to if it carries on with an intensity-based scheme, according to analysts.

China uncovers another case of ETS data fraud as token fines don’t bite

Another Chinese company has been caught falsifying data under the national emissions trading scheme as regional governments continue efforts to identify and stamp out carbon market fraud, though available sanctions against wrongdoers remain weak.

China coal plant approvals rebound amid energy security concerns

An increase in approvals for new coal power facilities in China has reflected rising concern over energy security at home, an NGO report published on Wednesday found.

Safeguard Mechanism to underpin growth in Australia’s carbon market, research says

Australian heavy industry’s push to offset emissions is expected to drive massive demand in the country’s carbon market, with the help of the government’s revamped Safeguard Mechanism, according to analysis set to be released Thursday.

BHP to collaborate with India’s Tata to tackle steel emissions

BHP has signed a Memorandum of Understanding (MoU) with Tata Steel to jointly study and explore the development of lower carbon technologies for iron and steelmaking, the global mining giant announced on Wednesday.

VOLUNTARY

Bank of Montreal buys carbon credit firm Radicle, as financials continue VCM acquisitions

The Bank of Montreal (BMO) has purchased Calgary-based offset developer and sustainability firm Radicle, the companies announced Wednesday, as financial players have yet to relent on taking a stake in the voluntary carbon market (VCM).

Fresh financing boosts cookstove projects in Africa

A cookstove project in Africa expects to generate 3 million carbon credits over the next seven years after securing new funding, while two originators have deepened their involvement in a scheme in the region.

Verra previews public consultation on carbon credit tokenisation

Verra will begin the long-awaited public consultation process on third-party crypto instruments next month after the standards body temporarily halted the tokenisation of its retired carbon credits this spring, the organisation announced Wednesday.

Credits from US energy efficiency project awarded low rating

An energy efficiency scheme in the US has been given a low chance of avoiding or removing a tonne of CO2 by a ratings agency in its latest round.

AMERICAS

Biden kicks off US executive climate actions with offshore wind plans

US President Joe Biden (D) on Wednesday announced several measures to help kickstart offshore wind developments as part of a suite of forthcoming climate-related executive actions, after Democratic Senator Joe Manchin and all Congressional Republicans have blocked clean energy-focused legislation.

Experts present wide-ranging average price outlook for Canada’s Clean Fuel Regulations

Analysts offered varying forecasts for Canada’s Clean Fuel Regulations (CFR) average price out to 2030 in a webinar on Wednesday, with changes in regulatory design expected to impact future credit prices.

California gasoline, diesel sales recede in April to fall below 2021 levels

Gasoline sales in California declined in April to offset March’s uptick, while both gas and diesel consumption posted their first months below 2021 levels so far this year, according to state data published Wednesday.

INTERNATIONAL

Global CO2 emissions to dip on strong renewables, slower demand growth, IEA says

Global electricity CO2 emissions are expected to fall, albeit slightly, in 2022 as weakening economic growth and soaring energy prices put the brakes on power consumption while renewables have a bumper year, according to the IEA in a report published Wednesday.

Annual CO2 storage at CCS plants as much as 30% below global capacity -study

The level of CO2 captured and stored at CCS facilities annually is well below total yearly global capacity, by 19-30% on average, highlighting the urgent need for uniform and more comprehensive reporting on CO2 capture and storage rates, a study has found.

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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

ASIA PACIFIC

Green dreams – The Australian Greens announced they will begin negotiations with the government over its upcoming climate bill, according to The Canberra Times. The government is set to introduce legislation when parliament resumes next week to mandate its 43% emissions reduction target by 2030. The bill would also legislate net-zero emissions by 2050, along with requirements for the minister to provide updates on how the targets are being met. However, the Greens have called for the target to be higher, along with ensuring subsequent governments can’t lower it. The Greens party room met on Wednesday to discuss its stance on the upcoming bill. While a final position is yet to be determined, Mr Bandt said the Greens still had concerns. The Labor government would need all 12 Greens senators plus one additional crossbencher to pass any legislation through the upper house. Bandt said areas of concern for the bill included the “adequacy” of the target as well as calling for the legislation to act as a floor and not a ceiling for future climate action.

Step abroad Shanghai-based Envision Group, which provides wind power and energy storage solutions, has signed a collaboration agreement with the government of Spain to jointly develop the first industrial cluster of net zero carbon emissions in Europe, according to a company statement. The first phase of the industrial park is expected to include a gigafactory for electric vehicle batteries and a green hydrogen generation plant. The Chinese group says it aims to build 100 net zero industrial parks globally in the coming decade, reducing global carbon emissions by 1 bln tonnes of CO2e per year.

Octopus spreads its tentacles – Octopus Investments Australia has announced the launch and successful first close of its renewable energy platform for institutional and whole sale investors, while closing two funds co-investing into a multi-billion Australian renewable energy portfolio. The company said in a release that the two funds have access to Octopus Australia’s utility scale energy and storage portfolio. The two funds secured portfolio sits at A$3 bln across wind, solar, and storage, with a visible pipeline of $5 bln. The funds’ backers include the Australian government’s green bank, the Clean Energy Finance Corporation, superannuation fund Hostplus, and  Octopus Renewable’s Sky Fund. CEFC Executive Director Monique Miller noted Australia needed significant renewable energy build-out to tackle the task of decarbonising the grid and meeting its net zero targets. The bank committed A$75 mln to the fund as a cornerstone investment. Octopus MD Sam Reynolds said the company was pleased to launch the platform which would allow Australia investors to participate in the country’s renewable energy future.

EMEA

Model behaviour – A consortium including Imperial College London researchers has created a bespoke energy and emissions model to help Kenya achieve its climate goals. The Kenya Carbon Emission Reduction Tool (KCERT 2050) allows users to trial options for reducing climate change-inducing carbon emissions at a faster rate and to build a pathway that meets long-term emission targets to 2050 and beyond. It can be used to support policymaking to allow governments to increase national action on climate change and strengthen ambition in line with the 2015 Paris Agreement. The interactive energy model – the first in East Africa – was delivered under the UK government’s international 2050 calculator programme, funded by the UK department for business, energy, and industrial strategy. It was led by global engineering, management and development consultancy Mott MacDonald and a consortium which includes Imperial College London, Climact, and Ricardo.

Back to the polls – The public is keen for a mass roll-out of renewable energy and green home technologies to help tackle the cost of living crisis. Britons want to see more renewable energy and more government support for installing energy-efficiency measures such as insulation and heat pumps to bring down the spiralling cost of energy. The survey of 2,005 UK adults by Public First, weighted by age, gender, region, and social grade, confirmed the cost of living crisis as being the most pressing issue for the country, top-rated by 71% of respondents. The rising cost of living has been driven in large part by soaring gas prices, which have pushed up the cost of home energy use and maufacturing costs for businesses. Expanding the UK’s green energy capacity is seen as a crucial route out of the crisis, the poll revealed. The poll found that 76% of the public believe that the expansion of low-carbon energy – such as solar, onshore and offshore wind, and nuclear power – is the best route to reducing UK reliance on foreign gas imports, and 72% see it as a way to reduce bills.

Sizing up the cost – Britain gave consent for the planned Sizewell C nuclear plant to be built in southeast England, the government’s business department said on Wednesday, giving a boost to a project that is expected to help the country achieve its net zero goals. The plant, which would be capable of producing 3.2 GW of electricity or enough to power around 6 mln homes, is majority-owned by French utility EDF and is to be built in Sizewell, a small fishing village in Suffolk. Sizewell C will help to bolster Britain’s pledge to be more energy independent in the long term as countries across the world race to reduce dependence on external sources for energy after the Russia-Ukraine conflict sent oil prices soaring. (Reuters)

Whatever floats your gas needs – Germany will use a fifth floating LNG terminal in its drive to wean itself off Russian gas imports at a pace never seen before in the country. A private consortium will establish the terminal in Lubmin by the end of this year, where the suspended Nord Stream 2 pipeline connecting Germany to Russia via the Baltic Sea reaches land, the economy ministry said. In addition to terminals in Wilhelmshaven and Brunsbuttel by the North Sea coast, two further terminals will also be established: one in Stade, near the city of Hamburg, and a second one in Lubmin, which is located near the border to Poland, Clean Energy Wire reports. The latter two terminals will start operation in late 2023 at the earliest, while Wilhelmshaven and Brunsbuttel are set to start operations around the start of next year.

Targeting African farmers Two technology companies are hoping to attract millions of African farmers to use blockchain credits to arrest soil erosion on the continent. The Regen Network, a decentralised ledger that runs on the Cosmos blockchain, has teamed up with the Shamba Network to design credits for smallholding famers on the Regen registry. Shamba uses satellite data and analytics to designate areas of farmland suitable for regeneration. “Shamba is innovating on one of the most important aspects for the success of regenerative finance and carbon markets: decentralized oracle networks and monitoring systems,” said Gregory Landua, chief executive of Regen Network Development. “Regen Network is excited for Shamba to be producing new types of eco credits on Regen Ledger and integrating with the Regen data module to bring cutting edge monitoring to our community.” Some 33 mln smallholder farmers in Africa could benefit from the design of eco-credits that can be used to unlock new farm financing streams, according to Regen Network. Around half of the arable land in Africa is degraded, the company added.

Tesla drivers getting Musked – Customer protection association vzbv has filed a lawsuit against Tesla over misleading information regarding the US e-car manufacturer’s CO2 emissions record and breaches of data protection laws. The association said it has sued Tesla at a court in Berlin due to the carmaker’s marketing claim that customers can actively contribute to reducing transport emissions by emitting “zero grams per kilometre” travelled. However, the vzbv said it is not true that Tesla car buyers directly reduce emissions, as the company is selling emissions allowance certificates to other carmakers for every gram of CO2 saved, who can then continue to pollute the atmosphere in Tesla’s place. Many customers may decide to buy a Tesla because they want to make a contribution towards cleaner transportation, but “the reality looks different,” the vzbv said, adding that the company earned about $1.6 bln in 2020 alone by selling its so-called “emissions credits.” Other companies can use the allowances to let their car fleets emit more than EU limits allow, a fact that Tesla is hiding on page 30 of its environmental impact report, according to vzbv.

SCIENCE & TECH

Largest order ever – Norwegian firm Nel has netted its largest ever electrolyser order, to supply 200 MW of stacks for an industrial project belonging to a US -based developer, according to Recharge. To put this into perspective, only 256.9 MW of electrolysers are currently in operation worldwide, according to analyst Rystad Energy. Worth more than €45m ($46m), the order could be expanded to include balance-of-plant equipment for the project, pending an ongoing engineering study. Production on the stacks will begin in February 2023 at Nel’s 500 MW electrolyser factory in Heroya, Norway, continuing until mid-2024. Nel’s customer for the order remains shrouded in mystery, however. Nel said only that the US-based client has developed the project over several years, and plans to fund it via a combination of private investment and state and local government incentives, which have already been granted. The project is underpinned by 20-year off-take commitments from local buyers, as well as a 20-year power purchase agreement for electricity supply to the green hydrogen production plant.

Clean conversion – Flight simulation and pilot training company CAE is converting two thirds of its Piper training aircraft to electric and bringing a battery-powered plane to market, also for training purposes. The four-seat Piper Arch planes will finalise conversion in the next few years and the Montreal-based company says it will be the first to offer electric test planes in the world. (Globe and Mail)

AND FINALLY…

Pulau vice – Residents of the Indonesian island of Pulau Pari threatened by rising sea levels have begun legal action against the world’s biggest cement producer, Holcim, filing a claim for compensation and flood defences in Switzerland in what is understood to be the first major climate damages lawsuit against a cement company. The residents, backed by NGO Swiss Church Aid, also want the company to cut its GHG emissions by 43% by 2030 and 69% by 2040 to limit future damage. Holcim has set a science-based target including to cut Scope 3 emissions 90% under 2020 levels by 2050 and has interim CO2 intensity goals for 2030. (Guardian)

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