Three weeks 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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TOP STORY
Czechia floats RePowerEU compromise as several EU nations object to MSR sales -official
Czechia is proposing the EU raise most of a €20 billion RePowerEU revenue target from selling carbon allowances earmarked for the bloc’s Innovation Fund amid member state objections to solely exploiting units held in the MSR, an official told Carbon Pulse on Friday.
AVIATION
ICAO states, aviation industry battle over stringency of CORSIA baseline
Countries from the Global North and South are diverging on the stringency of the post-2023 emissions baseline for the CORSIA global aviation offset mechanism, as UN body ICAO’s Council puts forth a compromise ahead of a decision next month.
EMEA
UK sends mixed messages on emissions reductions as it updates NDC
The newly-installed UK government made a major energy security push on Friday, announcing plans to fast-track both low-carbon and fossil fuel projects even as it submitted a revised climate pledge to the UN detailing a pathway towards its binding 2050 net zero emissions target.
Euro Market: EUAs tumble to six-month low as traders boost short positions amid more MSR talks
EUAs tumbled as much as 7.2% to a six-month low on Friday as traders reacted to news that Germany is mulling an idea for a larger revenue target for allowances sales under the RePowerEU plan, while energy markets were marginally weaker as forecasts showed windy conditions and temperatures above seasonal norms.
UKAs to maintain premium to EUA prices despite waning hedging demand -analyst
UK allowances will maintain their premium to EUAs in the coming years as the British market remains structurally tighter than its European counterpart, even as forward hedging demand for UKAs declines over the rest of the decade, according to an analyst.
South African Treasury rejects industry plea to decelerate planned carbon tax increases
The South African Treasury has rejected a plea from business groups to decelerate the government’s proposed trajectory of national carbon tax increases.
Senior EU carbon analyst joins London-based clean energy fund management firm
A senior European energy and carbon analyst from a French bank has joined a London-based clean energy fund management company, Carbon Pulse has learned.
ASIA PACIFIC
Singapore emitters want clarity over access to international carbon market
Singaporean stakeholders are calling for greater clarity over the eligibility criteria for securing international carbon credits, a released government document shows, as respondents filed comments to proposed changes to Singapore’s carbon pricing scheme.
Vanuatu makes waves at UN in bid to stop fossil fuels
The tiny South Pacific island nation of Vanuatu has been making waves at the UN this week, calling for an international mechanism to stop the expansion of all new fossil fuel projects.
CN Markets: CEA trade remains slow, but CCER volumes bounce back
Trading activity in China’s national emissions market was lacklustre again this week amid deep-seated pessimism about the policy outlook, as the offset market recorded an uptick in demand over the past week although volumes remain modest due to limited supply.
Australia Market Roundup: ACCU issuance slides, as Aus-US sign clean tech partnership
Issuances for Australian Carbon Credit Units (ACCUs) have slid down to its lowest amount in recent months, while the Australian and US governments have signed a clean energy investment agreement, and Woodside Energy has joined a methane emissions reduction initiative.
AMERICAS
Oregon strengthens LCFS targets to most stringent in North America
The Oregon Environmental Quality Commission (EQC) on Friday voted to increase the stringency of the GHG targets under the province’s low-carbon fuel standard, giving the state the deepest carbon intensity (CI) reduction goals in any North American programme.
Regulated entities’ CCA holdings hit 20-mth high, speculators stay firm
Emitters padded their California Carbon Allowance (CCA) net length for the fifth week in a row, while financial players kept their positions mostly steady, according to US Commodity Futures Trading Commission (CFTC) data published Friday.
INTERNATIONAL
Switzerland signs bilateral carbon deals with Morocco, Malawi, and Uruguay
The Swiss executive governing body has approved three bilateral agreements with Morocco, Malawi, and Uruguay, creating the framework conditions for the country to trade international carbon emissions reductions units to count towards Paris Agreement climate goals.
VOLUNTARY
Ratings agency puts three Uruguayan ARR projects on watch
A ratings agency has placed three Uruguayan forestry projects “on watch” for a potential ratings change, alongside a methane recovery project in the Netherlands.
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CONFERENCE
Two weeks 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
INTERNATIONAL
Compact coalition – Barbados’ PM Mia Mottley is building a global coalition of nations committed to overhaul the financial system and unleash trillions of dollars of investments to the climate frontlines. The leader of one of the world’s smallest nations is working to deliver a new global finance compact for vulnerable countries trapped between financial stress and the inability to prepare for the next climate disaster. Addressing the UN General Assembly on Thursday, she laid out a plan to transform the global finance architecture and make it fit to address the climate crisis. This is neither “idle thought or arbitrary comment on our part,” Mottley told the plenary hall in New York. (Climate Home)
EMEA
Gas shortage alert – Germany is stepping up preparations for a gas emergency that would require rationing for the country’s biggest companies this winter as Russia’s squeezes flows to Europe. In a sign of growing urgency, the regulator will next Wednesday present to lawmakers a digital security platform to identify the “non-protected” consumers that will bear the brunt of rationing, Bloomberg reports. That includes Germany’s 2,500 biggest gas users, which must register on the government regulator’s platform by the end of October. Should a deterioration in market conditions trigger an emergency after the winter heating season starts next month, the regulator would take control of gas distribution. Klaus Mueller, head of the regulator, has previously said that a cold winter would probably result in “waves” of gas shortages.
Gas-to-oil – The Swiss ministry for the economy (EAER) and the department for energy, transport and the environment (DETEC) issued a recommendation for all users of dual-fuel heating systems to switch from gas to oil operation from Oct. 1, the Federal Council said during a meeting on Friday. The recommendation is intended to make a significant contribution to achieving the voluntary gas savings target of 15% this winter, that also corresponds to that of the EU. In order to ensure the supply of mineral oil products, reserve stocks for petrol, diesel, and heating oil, as well as kerosene, will be released from Oct. 3. The departments said that significant amounts of gas can be saved quickly by implementing this recommendation. The Council also eased some environmental regulation temporarily to help with the switch.
ASIA PACIFIC
Keep it in the ground I – Keppel Infrastructure, Air Liquide, Chevron and PetroChina have signed a memorandum of understanding (MOU) to form a consortium to evaluate and advance the development of large-scale carbon capture, utilisation, and sequestration (CCUS) solutions and integrated infrastructure in Singapore, The Edge reports. According to the statement put out by the companies, the consortium intends to research, test, and develop technological, logistical, and operational solutions for CCUS in Singapore. In doing so, the consortium will look to provide industry-wide CCUS integrated infrastructure, primarily to support the energy and chemicals sector, by capturing and aggregating carbon dioxide from large industrial emitters at a centralised collection facility.
Keep it in the ground II – Indonesia’s state energy firm Pertamina aims to test the injection of carbon for storage underground by the end of 2022, as authorities prepare a regulation to encourage the development of carbon capture infrastructure, officials said on Thursday, Channel News Asia reports. Pertamina aims to slash its greenhouse gas emissions by 30% by 2030 and has been exploring carbon capture, utilisation and storage (CCUS) technology with several partners to offset emissions and boosts its oil and gas production.
Work together – Taiwan’s state-owned oil and gas company CPC has signed a strategic cooperation agreement with oil services firm Schlumberger to collaborate on carbon capture, utilization and sequestration, as well as the assessment of geothermal projects, according to a company statement released Thursday. CPC also aims to leverage Schlumberger’s comprehensive expertise in solar power, hydrogen and carbon emissions management as it plans to move towards net zero by 2050, it said. The Taiwanese firm has been working on a pilot project to assess the feasibility of CCUS technologies, with a planned annual capacity of capturing 1 million tonnes of CO2 by 2030.
AMERICAS
Hydrogen guidance – The US Department of Energy (DOE) has released draft guidance for a Clean Hydrogen Production Standard (CHPS), developed to meet the requirements of the Bipartisan Infrastructure Law (BIL). The CHPS is not a regulatory standard, and DOE may not necessarily require future funded activities to achieve the standard. However, hydrogen hubs funded in support of the will be required to “demonstrably aid achievement” of the CHPS by mitigating emissions across the supply chain to the greatest extent possible. (Green Car Congress)
Renewables request – New York on Thursday launched its sixth competitive solicitation for large-scale renewable resources, seeking 2 GW to come online as late as 2028. Initial applications are due Nov. 16 to the New York State Energy Research and Development Authority. The solicitation encourages renewables paired with energy storage technologies, sets minimum US iron and steel purchase requirements, and gives special consideration to projects benefiting disadvantaged communities. (Utility Dive)
AND FINALLY…
Mission accomplished – The US methane gas industry, unlike the Russian military, has achieved nearly all of its pre-invasion objectives, The Guardian reports. Before Russian forces had even invaded Ukraine, a US LNG trade association called on the White House to increase drilling on public lands, quickly approve gas export terminals, and pressure FERC to approve gas pipelines. Six months later, the LNG Allies, which operates as US LNG Association and does not disclose its donors, has won major policy victories including a task force to increase gas exports to Europe, greenlighting LNG export terminals, and more – policy changes the industry says were in “direct response” to its requests. The US oil and gas industry has pulled down record profits since Russia invaded Ukraine in late February. “The fact that just weeks after those demands were laid out, President Biden was turning industry wishes into policy is a damning indictment of a president who had promised to tackle the climate crisis,” Zorka Milin of Global Witness told the Guardian. (Climate Nexus)
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