One week 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
EU’s von der Leyen backs boost to REPowerEU funding, raising questions about a further ETS raid
European Commission President Ursula von der Leyen on Wednesday called for a boost to funding for the REPowerEU programme to exit Russian fossil fuels, arguing that the bloc otherwise risked fragmentation as member states roll out different levels of support to citizens and businesses.
EMEA
Urgent need for EU green hydrogen infrastructure as gas, carbon prices send fuel switch signal -experts
With gas prices set to remain elevated for at least five years, there is now a clear price signal for green hydrogen switching supported by a carbon price, experts told an event on Wednesday, noting that a lack of infrastructure is now a more significant bottleneck to decarbonising heavy industry and transport in the EU.
EU Market: EUAs ease back after topping €70 amid ‘less bearish’ REPowerEU sale prospects
EUAs climbed above €70 for the first time in over a week on Wednesday, though prices later fell back in thin trade as EU chief Ursula von der Leyen suggested boosting the size of the bloc’s REPowerEU initiative that is already set to be partly funded by carbon allowance sales.
AMERICAS
WCI compliance account transfers in Q3 hit highest level since 2018
WCI emitters in the third quarter moved the largest number of allowances into compliance accounts since 2018, while the linked cap-and-trade system’s compliance instrument glut continued to tick higher, according to programme data published Wednesday.
ASIA PACIFIC
NZ govt could become sole purchaser of forestry NZUs, minister tells media
New Zealand’s climate change minister has suggested that large emitters would have to buy forestry NZUs from the government rather than from foresters in what would be a dramatic shakeup of the ETS, according to domestic media reports.
Regulator lays out tighter GHG emissions reduction conditions for Chevron’s Gorgon project
Western Australia’s (WA) state Environmental Protection Authority has outlined measures for GHG abatement at Chevron’s Gorgon gas and LNG project that will require the project’s operator to commence a straight line GHG emissions reduction trajectory from 2025 to achieve net zero GHG emissions by 2050.
Risk-of-reversal buffer must be reassessed amid worsening climate change, ACCU submission says
Land-based carbon credit projects could be severely threatened by worsening climate change impacts, according to Australia National University, urging the government to reassess the risk-of-reversal buffer in its carbon accounting.
Japan’s “misguided” hydrogen strategy needs fundamental revision, green energy think tank says
Japan’s hydrogen strategy is misguided in terms of what hydrogen can be best used for and how it can be best produced, and needs to be fundamentally revised if it is to contribute to the country’s decarbonisation goals, a Japanese green energy think tank has argued in a report.
INTERNATIONAL
Carbon markets essential to scaling tech-based removals but initial govt support key -experts
Carbon markets will play an essential role in scaling engineered removals such as direct air capture (DAC), experts told an event on Wednesday, but initial government support is also key given the current cost of the technology.
DAC needs supply chains and co-ordination with renewable energy to scale
The nascent direct air capture (DAC) industry needs supply chains to develop and coordination with the ramp up in renewable energy for the technology to move past proof-of-concept and start to scale, a conference heard Wednesday.
VOLUNTARY
VER shortage expected by 2027 in high demand scenario -analysts
A shortfall of voluntary carbon offsets could become reality later this decade in a high demand, low supply scenario, analysts said Wednesday.
Crypto exchange launches automatic offsetting option
A decentralised exchange (DEX) has launched an option that will allow its users to have all their transactions on the platform automatically offset.
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CONFERENCE
One week 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
Growing strong — Australia’s Fortescue Future Industries has signed an collaborative agreement with Germany’s Tree Energy Solutions (TES), committing $29 mln to become a shareholder in the company, and invest $98 mln in the construction of the TES’ LNG import terminal in Wilhelmshaven, Germany. with a 30% stake in the project. According to TES, the terminal will import green hydrogen in the form of renewable natural gas, with the CO2 acting as a carrier. The first phase of the agreement will see TES and FFI invest and secure the supply of 300,000 tonnes of green hydrogen, with final locations being currently agreed. A final investment decision on the project is slated for next year, with the first green hydrogen delivery expected in 2026.
EMEA
Eastern promise – The premier of eastern German lignite mining state Saxony-Anhalt has said his state will not follow an agreement on an earlier coal phase-out made in the heavy industry state of North Rhine-Westphalia (NRW) in the west of the country. State leader Reiner Haseloff, of the conservative CDU, said that bringing the coal phase-out forward to 2030 from 2038 was not feasible and that all power production should be kept on the grid to prevent the threat of further shortages. (dpa, Clean Energy Wire)
Nice save – Keeping all three German nuclear power plants in operation through Mar. 2023 would save approximately 1.3 Mt of CO2, Germany’s economy ministry said in a statement obtained by NOZ. “Extending the operation of the three nuclear power plants Isar 2, Neckarwestheim 2 and Emsland that are in operation beyond December 31, 2022, could lead to a decline in coal-fired power generation in Germany of 1.2 terawatt hours (TWh) in the first three months of 2023,” the ministry said in response to a query by Jens Spahn, deputy leader of the opposition CDU parliamentary group. Generating 1.2 TWh of electricity from hard coal produces around 1.4 Mt of CO2 but only 78,000 tonnes from nuclear power, according to the response. If all three nuclear power plants remained in operation, savings of some 1.3 Mt would therefore be possible. (Clean Energy Wire)
Congo rejects – The Democratic Republic of Congo’s government has rejected a request by US climate envoy John Kerry to withdraw some oil blocks put up for auction to protect forests, Environment Minister Eve Bazaiba told Reuters on Wednesday, saying it could undermine the country’s development. Environmentalists fear the 30 oil and gas block put up for auction in July could open parts of the world’s second-biggest rainforest and peat lands to drilling. (Reuters)
ASIA PACIFIC
Fully charged — Australia’s Clean Energy Finance Corporation (CEFC) has committed A$35.5 mln ($23 mln) to Neoen’s 100 MW Capital Barrier in the ACT, allowing the project to reach financial close. CEFC said the battery will help modernise and stabilise the grid, performing multiple roles including firming renewables, as well as providing frequency services, when it becomes operational in the first half of 2023. It is underpinned by 70 MW virtual battery contract for seven years with AGL Energy. Neoen will own and operate the battery, with over 576 MW of battery storage under its control, or under construction in Australia. Meanwhile the government has appointed power industry expert Tony Concannon to the CEFC’s board, among various other reappointments.
Sea bounty — The first commercial harvest of asparagopsis seaweed has occurred off the coast of Geraldton, Western Australia, the ABC reports. Seaweed company Seastock harvested 300 kg of naturally occurring seaweed from an Abrolhos Island aquaculture farm. The seaweed has been harvested, spun to remove water, and packed into canola oil, which will then be sold for A$50/kg to three customers, including a major dairy producer who will use it in commercial trials to cut biogenic methane emissions. Australian Sustainable Seaweed Alliance has forecast the asparagopsis industry will be worth as much as A$100 million ($64 mln) by 2025.
Firm friends — Santos and the Japan Bank for International Cooperation (JBIC) have signed an MoU to to promote stable energy supply and decarbonisation work. Santos CEO Kevin Gallagher said in a press release that it had been working with JBIC for decades, and the MoU would focus on energy security and decarbonisation. He added that this would include establishing “clean” fuel supply chains, investment and business opportunities for Japanese companies in decarbonisation projects in Australia and the Indo-Pacific region, including CCS hubs, and “social capital opportunities”.
Taking it back – South Korea’s largest private gas supplier SK E&S has removed claims it would produce carbon-free liquefied natural gas from its marketing materials after the government expanded a crackdown on misleading labels of fossil fuel projects, Bloomberg reports. SK E&S edited previous press releases and promotional videos in late September to remove its assertion that LNG from its planned Barossa project off the northern coast of Australia would be “CO2-free,” toning down its claim to “low-carbon” gas, a company representative said Tuesday. That came after the environment ministry urged the company to accurately advertise its product in March. Green group Solutions for Our Climate filed a lawsuit against SK E&S over the claims.
Backing a market – A panel of India’s International Financial Services Centres Authority has recommended the development of a voluntary carbon market and the creation of a global climate alliance among other measures to grow the sustainable financing ecosystem through India’s offshore financial services centre, GIFT-IFSC, Bloomberg reports. However, the recommendation was a very general one, and did not include any sort of detail on what an Indian VCM might look like. The government in August approved legislation for domestic VCM, which analysts expect to be rolled out in three phases, eventually leading to a mandatory scheme.
AND FINALLY…
Chill out EU – To save energy this winter and next summer, the European Council offices will only be heated up to 19C, the General Secretariat of the Council announced in an email to staff and management, obtained by Politico. The illumination of the Europa building’s lantern will be switched off, and the special illumination of the buildings will be suspended, the Council’s organization chief, William Shapcott, said in the internal message. The temperature in the atrium of the Justus Lipsius building will be lowered to 16C during the winter, and air-conditioning will be shut down in the atrium during the summer.
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