One month until Carbon Forward 2022 – Europe’s leading environmental markets conference. Taking place in London and online from Oct. 12-14, don’t miss the chance to hear about the risks and opportunities presented by the world’s largest carbon markets – compliance and voluntary. Or come network with your industry peers and meet our sponsors and exhibitors.
In-person passes are limited and going fast, so Register Now!
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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
Carbon credit retirements set to grow this year at slowest rate since 2016, say analysts
Voluntary carbon credit retirements are set to grow at their slowest rate since 2016 and may even shrink year-on-year in 2022, according to data collated by an analytics provider that would end more than five years of strong market growth with multiple factors also pointing towards weakness in 2023.
ASIA PACIFIC
China thermal power growth accelerates in August amid energy security concerns
China’s thermal power generation in August jumped by 14.8% from a year ago, outpacing a 9.9% gain in overall power output, as concerns over energy security continue to grow, government data showed Friday.
CN Markets: CEA trading volume drops to new low as policy uncertainty drags on liquidity
Weekly trading volume in China’s national emissions market posted a new low for this quarter, as the long wait for clarity on the next compliance cycle continues to drain liquidity.
Large green ammonia project gets zero-emissions pre-certification
An Australian industry body has certified that a green ammonia plant being built in the Pilbara region of Western Australia will be supplied by a zero emissions source.
EMEA
Euro Markets: EUAs snap 3-week losing streak amid shrinking liquidity as options expiry approaches
EUA prices snapped a three-week losing streak to post an 11% gain over the week, rising strongly after the auction on Friday as the approaching expiry of September options drove some short covering.
Swiss government proposes climate law revisions that feature sweeteners
The Swiss federal council on Friday adopted a revision of the country’s climate law for 2025-30, seeking to halve greenhouse gas emissions from 1990 levels via targeted incentives rather than new or higher CO2-related pricing.
AMERICAS
WCI auction volumes pick up for Q4 sale
California and Quebec will increase the number of current vintage allowances offered in the jurisdictions’ November cap-and-trade sale, breaking from the trend of declining volumes up for sale at the prior two auctions, according to an official notice published Friday.
WCI emitters and financial players continue to diverge in holdings
Emitters continued widening their California Carbon Allowance (CCA) net length this week, while financial players marked the fourth consecutive week of decreasing their position, according to US Commodity Futures Trading Commission (CFTC) data published Friday.
INTERNATIONAL
US commits $5 mln to tackle methane emissions in Africa amid global financing dearth
The US will give $5 million to the African Development Bank (AfDB) to help reduce methane emissions on the continent, building on a recent US-EU sponsored initiative to boost funding to rein in output of the potent greenhouse gas in the developing world.
VOLUNTARY
REDD developer seeks new revenue share model amid expansion
A REDD forestry project developer is negotiating a new revenue share model from offset sales in the Democratic Republic of Congo (DRC), at a time when heightened prices are helping to spur booming activity.
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CONFERENCE
One month until Carbon Forward 2022 – Europe’s leading environmental markets conference. Taking place in London and online from Oct. 12-14, don’t miss the chance to hear about the risks and opportunities presented by the world’s largest carbon markets – compliance and voluntary. Or come network with your industry peers and meet our sponsors and exhibitors. In-person passes are limited and going fast, so Register Now!
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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
Steel deal – Indian steelmaker JSW Steel has signed an initial deal with German technology company SMS Group to reduce carbon emissions and produce green steel, SteelTimesInternational reports. The two firms signed a memorandum of understanding (MOU) for exploring solutions to help decarbonise projects across various JSW Steel plants in India. SMS Group will provide technology expertise, design, engineering consultancy and commissioning for executing decarbonisation projects across JSW Steel plants in India, while the steelmaker will provide raw materials, consumables and manpower for the project. JSW plans to spend $1.26 bln to bring down greenhouse gas emissions by 42% from a 2005 base year to less than 1.95 tonnes of CO2 per tonne of crude steel produced by 2030. It will focus on replacing thermal power with renewable power, higher use of scrap and increase beneficiation of low- and medium-grade iron ore.
Capture this – In what could be a game-changer for India to achieve its ambitious climate change goals and reduce emissions, the government has sought global help for a new technology that can enable it to capture CO2 from furnace stack gases and route it for fertiliser production in the country, News18 reports. If and when this technology is received by India, it would enable the country’s industrial sector to bring down rising emissions. Engineers India Limited (EIL), under Ministry of Petroleum and Natural Gas, on Sep. 13 invited Expression Of Interest (EOI) from Indian and global companies for carbon capture technology from furnace stack gases used in combustion plants.
Carbon counting – Bank of Ayudhya, a Thailand-based bank operating under the umbrella of Japan’s MUFG Bank and the fifth-largest lender by assets in the kingdom, is set to invest in a Thai subsidiary to be established next spring by Zeroboard, a Japanese startup that helps companies calculate their GHG emissions, NikkeiAsia reports. As Japanese automakers and other companies strive to reduce their emissions of carbon dioxide and other heat-trapping gases, both for themselves and in the supply chains they are building in Asia, the Bangkok-based bank, locally known as Krungsri, will offer the greenhouse gas emissions tallying service as the bank looks to become more competitive. Zeroboard offers a software tool in Japan that calculates greenhouse gas emissions in accordance with international standards, using data such as companies’ electricity use and waste disposal. It plans to set up a subsidiary in Thailand by April next year to focus on other Asian markets where many Japanese companies operate.
Vietnam visit – Vietnam’s Ministry of Natural Resources and Environment welcomed a delegation from the Japan Bank for International Cooperation this week, in relation to discussions on emissions reductions and developing domestic and international carbon market. A statement from the ministry said the government was “urgently implementing” policies that would help it meet its commitment to reach net zero emissions, as well as cut methane emissions by 30% by 2030. The statement said cooperation with international partners would play an important role in Vietnam achieving its targets. It also said JBIC could support Vietnam in “promoting the adoption of low-carbon transition investments, and financial instruments, such as connecting a domestic carbon market with the international one.
EMEA
Truss tremors – UK Prime Minister Liz Truss is to lift a three-year ban on fracking despite a leaked government report from the British Geological Survey that suggests little progress has been made in reducing and predicting the risk of earthquakes caused by the practice, The Guardian reported, citing the document. The first drilling licences are expected to be issued as early as next week, sources said, in a move that will reignite claims of another broken 2019 Conservative party manifesto pledge.
Goals at risk – French Energy Minister Agnes Pannier-Runacher is trying to get EU Energy Commissioner Kadri Simson to include nuclear among energy sources for the production of so-called “green” hydrogen, according to a letter seen by Euractiv France. In May, the EU unveiled its REPowerEU programme to rapidly reduce dependence on Russian fossil fuels and speed up the green transition. The targets listed in the programme include producing 10 Mt of green hydrogen by 2030 and importing 10 Mt from third countries that respect the same environmental and technological standards. But according to the French minister, the current rules for the production of green hydrogen leave little room for the production of “low-carbon” electricity, mostly from nuclear. However, given “the absolute priority of the next decade for hydrogen, … the only important issue is the carbon content of the hydrogen produced and not the production vector,” Pannier-Runacher wrote to the European Commissioner. This puts “the achievement of our common goals at risk,” Pannier-Runacher added.
Nein Prosit – The German beverage industry has warned that the rapid rise in energy and raw material costs could push hundreds of companies with thousands of employees into bankruptcy if the government does not intervene. “Whether gas, electricity or fuels, whether agricultural raw materials, packaging or logistics – excessive cost increases, coupled with increasing disruptions in the supply chain and delivery failures, are exceeding the limits of resilience for many companies in the beverage industry,” five business associations from the sector, ranging from breweries to mineral water, said in a joint statement. “The federal government must not leave the companies alone in this situation – it must act,” the statement continued. “Without rapid intervention by the state and without effective aid, hundreds of companies and thousands of employees in the German beverage industry alone will lose their existence.” It’s not just small and medium-sized businesses that face an existential threat but also major industry players, the associations warned. “It is not acceptable for support measures to be denied on the grounds that they would reduce the incentive to save energy and become less dependent on gas,” they continued. “Our companies have made great efforts to save energy wherever possible and to avoid the use of fossil fuels.” (Clean Energy Wire)
Do as we say… – A new study finds that researchers continue to emit high levels of GHGs, despite being highly willing to implement changes. The authors survey more than 6,000 public-sector researchers in France on their attitudes towards climate change and their high-emitting activities, such as air travel. They find that nearly 90% of respondents agree that “climate urgency calls for profound changes” in how researchers practice and almost two-thirds are willing to reduce their emissions associated with conferences and meetings. However, they state that there is a “clear gap” between these attitudes and the actual changes being made to reduce the climate impacts of research, and call on research institutions to support “profound reforms in the organisation of research activities”. (PLOS Climate, Carbon Brief)
VOLUNTARY
Mission Possible – The Science-Based Targets initiative (SBTi) corporate climate goal-setting body has teamed up with scores of businesses and climate experts from the Missions Possible Partnership (MPP) in a bid to develop a “simplified roadmap” for decarbonising companies in high emitting sectors in line with net zero goals. The two organisations said the “technical collaboration”, announced this week, was designed to help more closely align their sector-based transition strategies in order to improve guidance for seven high carbon industries: aluminium, concrete/cement, chemicals, steel, aviation, shipping, and trucking. By combining the expertise of the SBTi and the MPP the groups said they could develop “ambitious and technically robust methodology” for decarbonising industrial sectors in line with a 1.5C warming trajectory. (BusinessGreen)
AND FINALLY…
Pay of the dead – Thousands of dead people in Austria have been sent a government payout aimed at encouraging people to cut GHG emissions. The payouts are being financed from the proceeds of a new carbon tax that makes transport and heating more expensive if it is unfriendly towards the environment. The tax, which sees Austrians charged €30/tonne of CO2, is aimed at incentivising people to make greener decisions. But the financial aid – €500 per adult and €250 for a child – is being paid to everyone still on the tax register even if there are dead. The bonus is inherited by the heirs of the deceased, some of whom have gone to the Austrian press surprised that Vienna has not tightened this apparent loophole. This oddity is fuelling a heated debate in Austria, with opposition party New Austria and Liberal Forum calling it “a waste of taxpayers’ money, which lands in the pockets of people not only with high incomes but also of the dead”. (Euronews/AFP)
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