CP Daily: Tuesday August 9, 2022

Published 22:35 on August 9, 2022  /  Last updated at 22:35 on August 9, 2022  / Carbon Pulse /  Newsletters

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

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Minister says India will not export carbon credits as parliament passes crucial bill

As the Indian parliament on Monday evening passed the bill establishing a domestic voluntary carbon market, Energy Minister Raj Kumar Singh said carbon credits will not be eligible for exports, but did not specify if the restrictions were limited to offsets generated under the new mechanism.


California’s Newsom proposes tougher 2030 GHG goal, pushing up CCA prices

California Governor Gavin Newsom (D) has called for lawmakers to ratchet up the ambition of the state’s 2030 GHG reduction target, according to a document circulated to legislators this week and seen by Carbon Pulse, which sent California Carbon Allowance (CCA) prices to a two-month high on Tuesday.

Double, triple counting of GHG reductions likely under overlapping Canadian CCUS policies

Canadian oil and gas producers could potentially receive compensation for reducing the same emissions under federal and subnational climate policies that incorporate carbon capture, utilisation, and storage (CCUS), threatening the environmental integrity of these programmes and deflating credit prices, experts told Carbon Pulse.


Countries are only pausing on VCM development, says IETA boss

Uncertainty over whether host countries will allow carbon credits to be generated for the international voluntary carbon market (VCM) is only likely to be temporary, according to Dirk Forrister of business group IETA, who noted on Tuesday that governments are still figuring out how to use Article 6 international trade provisions to meet their Paris Agreement emissions pledges.

Growing disillusionment in REDD+ projects, forestry investor says

The head of a global forestry investment company has warned there is a growing lack of confidence in the REDD+ project formats in developing countries.

Crypto company looks to new horizons for Amazon rainforest tokens

A crypto company is expanding its reach for selling tokenised offsets from projects preserving the Amazon rainforest after teaming up with a blockchain marketplace.


China exporters likely to face rising costs from EU’s border measures -report

Chinese exporters are likely to experience considerable cost pressure from the world’s first levy on carbon imports, the EU’s carbon border adjustment mechanism (CBAM), as China’s domestic emissions trading scheme is not ripe yet, a report has found.

Taiwan extends emissions reporting requirements to manufacturing firms

Taiwan has required a new batch of companies to report their greenhouse gas emissions data on an annual basis, with a primary focus on electronics components manufacturers, one of the pillars of the island’s economy.

Marubeni secures exclusive agricultural biochar offset deal

Marubeni Corp. has signed a deal for the exclusive rights to market and sell carbon credits from the agricultural use of biochar generated by a Japanese biochar expert association that works with farmers.

Investment fund takes stake in Indonesian carbon project developer

An investment fund has taken an equity stake in an Indonesia-based carbon project developer with an eye on scaling up forest conservation and peatland restoration activities across Southeast Asia.


CEZ lags on hedging as coal burn covers output shortfall

Czech utility CEZ reported a lagged hedged position for H1 on Tuesday despite increased coal-fired output and bumper earnings, giving a bullish signal for EUAs for the rest of the year.

Euro Markets: EUAs hit four-week high as traders focus on technical signals amid declining volume

EUAs rose to a four-week high on Tuesday, with traders focusing on technical signals even as trading activity continued to diminish as the holiday period reached its peak, while energy markets edged lower despite warnings of higher temperatures.


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Nord need – Germany is facing severe gas supply shortages in the coming winter if it fails to introduce the right measures, according to scenarios mapped out by the Federal Network Agency (BNetzA). The agency published multiple new scenario calculations and found the country does not reach all its gas storage level targets (75% by Sep. 1, 85% by Oct. 1, 95% by Nov. 1 and 40% by February) in any. If gas supplies through the Nord Stream 1 pipeline dry up completely, the country will not only have to reduce overall gas consumption by 20% but also find substantial additional supply and lower exports to avoid a shortage. (Clean Energy Wire)

An atomic shrug – Nuclear plant operators in Germany are unenthusiastic about the prospect of having to revise their long-prepared decommissioning plans despite growing calls for the extension of runtimes, Der Spiegel reports. Germany’s nuclear phase-out law currently prohibits operators E.ON, EnBW and RWE from letting their reactors run past the end of 2022, but a so-called stress test for the power grid being instigated by the economy and climate ministry will determine whether a change to the law could help secure the country’s energy supply throughout the coming winter. (Clean Energy Wire)

Felix foresight – Iberdrola’s ScottishPower is planning to build a £150 mln green hydrogen plant at the UK port of Felixstowe to power trains, trucks and ships. The energy company has drawn up proposals for a 100 MW plant at the port which will provide enough fuel to power 1,300 hydrogen trucks from 2026. It said demand for the green fuel had stepped up since petrol and diesel prices began to soar last year, emboldening the firm to invest and submit an application to the UK government’s Net Zero Hydrogen Fund. (The Guardian)

Oil flows – Russian oil deliveries through the southern Druzhba pipeline servicing Hungary, Slovakia and Czechia have been halted since August 4, Russian supplier Transneft said Tuesday, Politico reported. The company cited a problem with EU financial sanctions, which resulted in Transneft’s regular payment for transit across Ukraine bouncing on July 28.

Romania’s turn – The European Commission has approved a Romanian scheme of up to €358 mln to support companies in the context of the coronavirus pandemic. The scheme was approved under the State Aid Temporary Framework. The measure will be open to micro, small and medium-sized companies affected by the coronavirus pandemic and active in sectors, such as manufacturing, wholesale and retail trade, and accommodation. Under the scheme, the aid will take the form of direct grants. The measure aims at helping companies finance investments in tangible and intangible assets to overcome the investment gap accumulated in the economy due to the coronavirus crisis.

Bring ’em back – The next UK prime minister needs to reinstate the role of minister for climate change, according to Chris Skidmore MP, the head of the influential Net Zero Support Group of the ruling Conservative party. The Department for Energy and Climate Change was abolished under Theresa May’s government in 2016, and moved into the Department for Business, Energy and Industrial Strategy. The opposition Labour party has a separate climate change shadow minister, Ed Miliband. (The Guardian)


Paperwork headaches – Most US farmers know about carbon markets, but more than half say they won’t join them without changes, and only 3% are currently participating, a survey of 500 famers by Trust In Food found. Adjustments in payment amounts, credit for existing conservation practices and reduction in paperwork would help entice more farmers to join carbon markets, the report finds. “Failing to connect with drivers such as purpose, mission, and legacy could inadvertently result in negative perceptions of carbon marketplaces as purely transactional efforts to commodify farmers’ hard work,” writes Cara Urban, lead author of the report from Trust In Food, Farm Journal’s sustainable agriculture initiative. “Producers might see such marketplaces as seeking to extract value from their operations at the lowest possible price, while requiring a lengthy and risky up-front investment of time, energy and expert advisers.”

Campaign tales – Canada’s Progressive Conservative (PC) party’s leadership candidate Jean Charest has included implementing a federal ‘low carbon fuel standard’ (LCFS) policy in his campaign pledge along with a focus on industrial emissions, TNC reports. Candidate Charest opposes Prime Minister Trudeau’s federal carbon tax, and vows to replace it with “an industrial carbon price to slash emissions while giving provinces the flexibility to choose their path to emission reductions”. Charest’s environmental plan includes a federal LCFS similar to BC’s provincial LCFS regulation in place for over a decade and the federal government’s Clean Fuel Regulation (CFR) slated to come into effect July 2023.


More hydrogen hubs – Japan’s Inpex and Australia’s AGL on Tuesday announced they had signed an MoU to conduct a feasibility study on the potential of establishing a hydrogen hub at AGL’s Hunter Energy Hub in New South Wales. That is the two companies’ second hydrogen partnership, as they entered into a similar MoU in June on the Torrens Hydrogen Hub in South Australia. The plan for Hunter is to see if it can facilitate the production of green hydrogen and export it along with hydrogen-derived products, the announcement said.


A-mission travel – Turkish Airlines has launched an emissions offset online platform earlier this month for business trips by company personnel and passengers called CO2mission, TTG Asia reports. Passengers travelling on any airline can use the CO2mission portal, inputting relevant flight information to purchase offsets from a vast portfolio selection of renewable energy and forestation programmes accredited by Verified Carbon Standard (VCS) and Gold Standard. The portal uses International Civil Aviation Organisation (ICAO) methodology that uses route length, aircraft type, fuel consumption, and other factors to calculate offset amount for each trip.


Does this look infected? – Climate change is already worsening the impact of infectious diseases, like Zika, malaria, and COVID-19, on human health, a study published Monday in Nature Climate Change found. “There is no speculation here whatsoever,” Camilo Mora, a geographer at the University of Hawaii who headed the research, told the AP. “These are things that have already happened.” Of the 375 known human infectious diseases, researchers found 218 (58%) are exacerbated by at least one of 10 types of climate-linked extreme weather. For example, extreme heat fuels the spread of COVID-19 by forcing people in low-income communities to congregate in air-conditioned rooms, expands regions vulnerable to malaria, and even exposes humans to anthrax, like when a Siberian child touched a reindeer carcass exposed by permafrost melt and started an outbreak in 2016. (Climate Nexus)

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