CP Daily: Monday October 10, 2022

Published 22:36 on October 10, 2022  /  Last updated at 01:32 on October 20, 2022  /  Newsletters  /  No Comments

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

Carbon Forward 2022 – Europe’s leading environmental markets conference – takes place in London and online this week from Wednesday to Friday, 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

Ready for mammoth forest credit issuance, Gabon says unidentified bidder offering above-market price

Upwards of 90 million national-scale forest protection credits from Gabon are likely coming to the global voluntary carbon market after the UN completed a technical check, with the country’s environment minister indicating that a bidder has emerged, willing to pay well above market for the units.

VOLUNTARY

London Stock Exchange outlines listing rules for firms financing carbon offsets

The London Stock Exchange on Monday outlined a set of listing rules for firms that finance carbon credit-generating projects as part of an aim to drive growth in the voluntary carbon market and increase its transparency.

European airlines relying on low-quality VERs in opaque offset strategies -report

European air carriers are purchasing VERs with questionable environmental integrity and failing to provide enough transparency about their carbon credit practices more generally, said an NGO-commissioned report published Monday.

GCC doubles carbon credit issuances as standards body starts to ramp up

The Global Carbon Council (GCC) issued 235,000 carbon credits on Monday, more than doubling its tally so far, as the standards registry starts to work through a large pipeline of projects.

VCM Report: Thin liquidity dogs market

Prices drifted over the week in the voluntary carbon market (VCM) that continued to be undermined by thin liquidity and negative press about a lack of integrity in the market amid the global macro-economic slowdown.

ASIA PACIFIC

Australia opens below baseline crediting consultation, int’l credits ruled out for now

The Australian government has opened consultation on draft legislation needed to create Safeguard Mechanism Credits (SMCs), which will be rewarded to industrial facilities that stay below their emissions baselines.

GreenCollar, Macintosh team up to demand ACCU market reform  

Australia’s biggest seller of carbon credits to the government has teamed up with one of the market’s biggest critics to voice “shared concerns” about the integrity of the scheme, calling for urgent reform.

EKI shares catapult on minister’s carbon credit export comments

Mumbai-listed EKI Energy Services, the world’s biggest carbon offset developer, has seen its share price rise by 30% after the government last week clarified there will be no all-out ban on exports of carbon credits from India.

EMEA

EU legislators agree some industry concessions as ETS reform talks resume

Representatives from the three EU institutions agreed on two concessions for heavy industry under the EU ETS reform bill in resumed trilogue negotiations on Monday, but left most issues for later.

Euro Markets: EUA prices ebb amid lack of news as Fit for 55 trilogues resume

EUAs lost as much as 5.9% to reach a one-week low on Monday as prices fell back from Friday’s nine-day high settlement in thin trade, while traders waited for fresh signals on market reform proposals and on the EU’s plan to auction more EUAs to fund its REPowerEU initiative.

EU to pay Estonia millions to phase out oil shale, approves €1 bln Slovakian aid for industrial decarbonisation

The EU will pay Estonia €354 million in grants to support the phaseout of oil shale in energy production that accounts for over 50% of the country’s total greenhouse gas emissions, and also approved €1.1 billion in Slovakian measures to help ETS-exposed industry to decarbonise.

AMERICAS

Colombia’s Ecopetrol spurns Scope 3 emissions in first of four CO2 neutral crude shipments

Petroleum company Ecopetrol on Monday announced it has sold carbon offset-backed crude oil to a US-based refiner, the first of several such shipments planned by the Colombian entity that omits Scope 3 output.

CORRECTION – Brazil can meet nearly half of global voluntary carbon credit demand by 2030 -study

(Updates Friday’s article to indicate that this study was first published in Oct. 2021 but reportedly revisited by presenters at an event held this week by the Arab Brazilian Chamber of Commerce ahead of COP27 in Egypt next month. This research was covered this week by multiple news outlets including Carbon Pulse, most of which appeared to have overlooked the publication date on the report. Carbon Pulse apologises for any confusion, but will not withdraw this story as it was not covered the first time around one year ago.)

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CONFERENCE

Carbon Forward 2022 – Europe’s leading environmental markets conference – takes place in London and online this week from Wednesday to Friday, 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.

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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

EMEA

So long solar – UK government ministers are planning to ban solar farms from most of England’s farmland, the Guardian reports. The new environment secretary, Ranil Jayawardena, is understood to oppose solar panels being placed on agricultural land, arguing that it impedes his programme of growth and boosting food production. To this end, say government sources, he has asked his officials to redefine “best and most versatile” land, which is earmarked for farming. Planning guidance says that development on BMV land should be avoided, although planning authorities may take other considerations into account. According to Carbon Brief, 0.1% of UK land is taken up by solar farms.

Turow or falso? – Poland’s general director for environmental protection waved through an environmental impact assessment (EIA) for the country’s Turow coal mine on Friday, despite expert analysis showing the EIA severely underestimates the amount of groundwater the mine is draining, NGO Europe Beyond Coal reports. The decision brings a step closer the possibility of Turow’s owner, PGE, gaining a licence extension for the mine to 2044 despite the European Commission previously stating that Polish authorities violated EU law when conducting the EIA because they didn’t carry out a proper public consultation. The mine, which is located close to the Czech and German borders, had been the focus of a Czechia-Poland lawsuit at the Court of Justice of the EU. However, the two countries agreed a €45 million compensation deal for Czechia before the court could pass its ruling. The settlement has angered local people who say expert analysis shows the plan for restoring water supplies will not work.

State support – The German state should support households and businesses with about 90 billion euros by early 2024 to lower gas bills, said an expert commission charged by the government with drawing up a plan to relieve gas consumers affected by rising prices, reports Clean Energy Wire. In their interim report, the representatives from industry, research and labour unions propose a one-off payment this year, and subsidies for a basic volume for gas use for both small and large consumers starting next year. Several researchers and associations criticised that the proposals are focussed on short term relief and might not incentivise sufficient energy savings. The proposals now have to be debated by the government and parliament.

Milking it – The dairy co-operative Arla Foods has announced it will pay its farmers more money for the milk they produce if they meet new environmental sustainability targets, the Guardian reports. Arla is introducing the “sustainability incentive” with the aim of promoting and funding the reduction of emissions on the farms of its 8,900 members, based in the UK and six other European countries including Denmark, Sweden, and Germany. The goal is to help the co-op reach its target of reducing emissions on farms by 30% for each kilogramme of milk produced by 2030, and of reaching net zero by 2050. The launch of the incentive – which will be paid out to farmers from July 2023 – marks a big shift for the co-operative’s milk pricing model, linking the sum received by each individual milk producer to their sustainability efforts. Arla members, including 2,300 British dairy farmers, will be able to access the extra payment by earning points based on the number of activities they undertake on their farms, according to the co-op’s models. Those who fail to improve their sustainability and collect below the average number of points will see a reduction in the money they are paid for the milk.

ASIA PACIFIC

Give CCS a (tax) break – The Malaysian government announced a raft of tax incentives for investment in CCS in the release of its budget on Friday, according to a summary from KPMG. Companies undertaking CCS activity will enjoy an investment tax allowance of 100% for 10 years to set-off against 100% of statutory income, full import duty and sales tax exemption on CCS equipment between 2023 and 2027, and tax deductions for allowable expenses within 5 years prior to the date of commencement of an operation. Similar incentives will also apply for companies engaged in CCS services. The measures will apply to applications received by the ministry of finance between 2023 and 2027. According to KPMG, “although no specific implementation date has been announced, the government is evaluating the carbon pricing mechanism”.

Looking for funds – Indian billionaire Gautam Adani and his family are in early discussions with investors, including Singapore’s Temasek and sovereign wealth fund GIC, to raise at least $10 bln to fund its expansion into clean energy, ports and cement businesses, Business Times reports. Adani Group will invest more than $100 bln over the next decade, most of it in the energy transition business, its chairman, Mr Adani, said last month, as the ports-to-energy conglomerate accelerates an already aggressive expansion plan. Adani family members and top group executives held talks with several potential investors, the report said, citing two people with direct knowledge of Adani Group and the Adani family’s plans.

AMERICAS

Money in the rank – California Gov. Gavin Newsom said Friday he will call a special session of the state legislature in December to pass a new tax on oil company profits to punish them for what he called “rank price gouging.” Gas prices soared across the nation this summer because of high inflation, Russia’s invasion of Ukraine and ongoing disruptions in the global supply chain. But while gas prices have recovered somewhat nationwide, they have continued to spike in California, hitting an average of $6.39 per gallon on Friday – $2.58 higher than the national average, according to AAA. California has the second-highest gas tax in the country and other environmental rules that increase the cost of fuel in the nation’s most populous state. Still, Newsom said there is “nothing to justify” a price difference of more than $2.50 per gallon between California’s gas and prices in other states. (NPR)

AND FINALLY…

Footy footprinting – With European football competitions constantly expanding the number of teams participating and the geographical catchment area, English Premier League teams’ carbon footprint has naturally increased around European away days. Research from sports betting forum OLBG has calculated the carbon footprint of each Premier League club competing in this season’s Champions League, Europa League and Europa Conference League. Manchester United’s Europa League campaign will mean they produce the highest carbon footprint compared to any other Premier League side, thanks to lengthy trips to Real Sociedad, Omina and Sheriff respectively.

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