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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CARBON FORWARD 2022
EUA prices to shrug off weakness as EU maintains reforms focus -analysts
EUA prices are set to rise steadily through 2030 after stalling in 2022, initially reflecting the impact of the EU’s response to the energy crisis before adapting to the proposed reforms of the carbon market, according to a panel of analysts on Thursday.
Frontloading must dampen EU carbon prices, but not below €50 -senior lawmaker
The EU’s frontloading plan will serve two purposes – revenue generation and carbon price reduction – a senior lawmaker said Thursday, but warned that EU Allowances should not fall below €50.
Regulators lagging behind on scale of CO2 removals challenge -experts
Regulators need to send a better signal about the scale of the challenge in expanding carbon removals, with the current policy framework inadequate to keep the world in line with Paris Agreement targets, a conference heard Thursday.
Ready or not, here CBAM comes, say the experts
The EU carbon border adjustment mechanism (CBAM) has already passed too many regulatory hurdles for any significant policy U-turn, experts at the Carbon Forward conference said on Thursday.
“I’m not convinced” international offsets will return to EU ETS -senior lawmaker
A senior German lawmaker said he’s “not convinced” that international offsets will ever make it back to the EU carbon market, but he highlighted a possible future role for carbon removals in the ETS.
VOLUNTARY
Millions of REDD credits could jump in price after backdating with CCB
Millions of forestry conservation REDD credits verified by Verra could soon jump up in value by retroactively adding the Climate, Community and Biodiversity (CCB) co-benefits standard to the project, it was revealed to Carbon Pulse.
Sovereign forestry credit platform parts ways with leading offset marketplace
Sovereign REDD forestry conservation platform REDD.plus has lost its connection with one of the largest marketplaces in the voluntary carbon market (VCM) after three years of partnership.
Canadian VER financier enters clean cookstoves JV to fund African expansion
A Canada-based carbon credit investor on Wednesday announced a strategic partnership to fund the expansion of clean cookstove projects in Africa.
Firms eye first two-way bridge between blockchain trading platform and carbon registry
A Web3 start-up and a Colombia-based offset registry have announced plans to build the first direct two-way bridge between a carbon offset registry and a blockchain-based trading platform.
AMERICAS
NA Markets: CCAs bubble to 1.5-mth high as selling pressure weakens, RGAs follow suit
California Carbon Allowance (CCA) prices climbed for the second consecutive week on reported fund and compliance buying and as participants focused on upcoming Scoping Plan drivers, while RGGI Allowance (RGA) values largely followed their WCI counterparts towards a one-month peak.
2023 WCI floor price expectations increase as September inflation holds above 8%
Floor price expectations for next year’s WCI-linked cap and trade auction reserve price inched higher as September inflation remained above 8%, according to federal data published Thursday.
US major ExxonMobil teams up with industrial player for 2 Mt/year CCS project
ExxonMobil has entered into an agreement with a US hydrogen and nitrogen manufacturer to capture and store up to 2 million tonnes per year of CO2 generated from an industrial facility in Louisiana, the US oil and gas major announced.
ASIA PACIFIC
Australia’s Northern Territory to allow int’l carbon credits in new GHG offsetting policy
Australia’s Northern Territory will allow the use of international carbon credits by large polluting facilities as part of its newly released greenhouse gas offsets policy.
Western Australia launches grant to cut industrial emissions, generate carbon credits, and green H2 target consultation
The Western Australian state government has launched a technology grant programme for heavy industries to cut their emissions and generate carbon credits, and a separate consultation on a renewable hydrogen target.
INTERNATIONAL
More companies making net zero claims but still unwilling to detail specifics on how to achieve Paris-aligned goals, survey finds
Corporates are increasingly making net zero commitments but their pledges are not being matched by the development and implementation of credible decarbonisation strategies that demonstrate to investors detailed efforts to align with the goals of the Paris Agreement, a survey of 159 companies by a climate investor action group has found.
EMEA
Euro Markets: EUAs lift after bouncing off technical support
EUAs tested technical support and resistance levels on Thursday as trading activity appeared to pick up, while natural gas prices moved in a wide range as traders reacted to reports of security alerts affecting flows from a major North Sea field.
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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. 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
EMEA
Target at risk – EU countries are considering watering down the European Commission’s plan to ditch Russian fossil fuels, known as REPowerEU, including scrapping a proposed 45% renewable energy target for 2030, according to a document seen by Euractiv. The amendments made by EU countries to the European Commission’s REPowerEU proposal, tabled in May, could impact the speed of renewable energy deployment, which is crucial to decrease reliance on Russian fossil fuels and lower energy prices. The amendments remove the Commission’s push to increase the target for renewables in Europe’s energy mix to 45%, replacing it with the 40% target agreed by EU countries in June. This is below both the European Parliament’s and the European Commission’s positions, which both support the 45% target.
Hydrogen help – Spanish infrastructure company COBRA will be granted €220 mln in state aid to support the production of renewable hydrogen and promote its use in industrial sectors. The measure, officially approved today, contributes to the achievement of the EU Hydrogen Strategy and the European Green Deal targets, while helping reduce dependence on Russian fossil fuels and fast forward the green transition in line with the REPowerEU Plan. The aid, which will take the form of a direct grant, will support the construction and the installation of electrolysers in the Spanish regions of Cartagena and Castellon. Once completed, the project is expected to avoid the release of 47,038 tonnes of CO2 annually.
Gas-fuelled transports – Italian haulage operators using LNG as fuel will receive €25 mln in state aid. The aid, approved by the EU in the context of Russia’s war against Ukraine, will take the form of a tax credit. In particular, the eligible beneficiaries will be entitled to receive an aid amount equal to 30% of the eligible costs incurred between Feb. 1 – Dec 31 2022. As of Sep. 1 2022, the LNG amount used to calculate the eligible costs is capped at 70% of the beneficiary’s LNG consumption for the same period in 2021. The aid will not exceed €2 mln per company and will be granted for costs incurred until Dec. 31 2022.
Dirty divide – The green and digital transition in the EU will further widen the gap between major cities and high-tech regions on one side and rural areas and regions with CO2-intensive industry on the other, according to a report by German foundation Bertelsmann Stiftung – the main shareholder of media giant Bertelsmann. If found that inequality in the EU will remain, but that the bloc can better target financial support to rural areas to prevent the wealth gap from widening even further. Existing economic imbalances in Europe will be further exacerbated by the green and digital twin transition and only tailored EU funding policy can mitigate the effect, it added. (Clean Energy Wire)
Recession looms – Germany’s economy is set to shrink 0.4% in 2023, as the fallout of Russia’s war against Ukraine and especially rising energy prices put a damper on industrial production and private consumption, says the government in its autumn projection for the country’s economic development. “We are currently experiencing a severe energy crisis that is increasingly turning into an economic and social crisis,” said economy minister Robert Habeck at a press conference. The government also corrected earlier growth projections for this year, and says the country’s economy would grow by 1.4% in 2022. The data presented today are bad, said Habeck, but they would have been much worse if the government had not counteracted developments, for example with relief packages or the buildout of an LNG import infrastructure in Germany. Russia supplied 55% of Germany’s natural gas before the war, creating a widely criticised dependency. Many observers fear that gas shortages will hit key industry sectors such as chemical companies hard, and also hurt private households due to natural gas being the dominant energy source for heating. (Clean Energy Wire)
ASIA PACIFIC
Japan-Saudi deal – Japan Oil, Gas and Metals National Corporation (JOGMEC) has agreed with Saudi Aramco to collaborate on project support, technology development, and human resource development related to the production and/or storage of hydrogen and fuel ammonia, JOGMEC announced in a press release. With this agreement, JOGMEC intends to proactively support the implementation and/or provision of risk money for a specific project in Saudi Arabia related to the production and/or storage of hydrogen and ammonia, which are our new support areas under the revised JOGMEC law promulgated on May 20, 2022.
Possible pledge – Australia is set to pledge its support to reduce global methane emissions by 30% by 2030, the ABC reports. The move is in contrast to the former Coalition government, which refused to sign up to the target, which is already supported by the United States and the European Union. “This methane pledge is an aspirational goal from the world to bring down our methane emissions, which is something not only that I support but that most farm groups support,” Senator Watt said on Thursday morning. “We’re certainly considering it … I’m certainly comfortable if we sign up to it. “We haven’t made that announcement at this point, we are still consulting with groups.” The minister’s comments pave the way for a formal commitment by the federal government ahead of a global climate summit in Egypt in November. Methane is a potent greenhouse gas and about half of Australia’s methane emissions come from the agriculture sector.
Let’s get together – Kansai Electric and Shell have signed a Memorandum of Understanding to explore and cooperate on liquid hydrogen business supply chains, Kansai stated in a press release. The scope of the collaboration will include production of “decarbonised” hydrogen, deployment of hydrogen liquefaction, storage, and shipping technology by Shell, and receiving and use of hydrogen for thermal power by Kansai.
AMERICAS
Climate-centric strategy – The long-awaited national security strategy from US President Joe Biden’s administration puts climate change at the centre of policymaking toward China, in the Arctic, and many other parts of the globe. The strategy released Wednesday by the White House integrates global warming into national security policy to an unprecedented extent, making clear the administration views the issue as “the existential challenge of our time.” The shrinking window to meet the Paris Agreement targets is one of several dynamics at play that will either point toward a more stable world or help usher in “[a]n age of conflict and discord,” per the White House. It states the US is open to cooperating on shared challenges with rivals, pointing to climate talks with China. (Axios)
No backstopping – While not appealing the Supreme Court decision on the federal government’s right to impose a backstop carbon price on provinces that do not have an equivalent carbon pricing mechanism, Heather Stefanson, premier of the Canadian province of Manitoba, had expected the federal government to work collaboratively with the province to discuss options. However, the federal government imposed the backstop last year without having a discussion with the province, Stefanson noted Wednesday. Last month, several premiers including Stefanson called for a suspension of the carbon tax to help consumers fight inflation, while Prime Minister Justin Trudeau claimed that the average family in Manitoba had received more in rebates from the carbon tax than it had paid out. The federal carbon tax on gasoline, natural gas, and other fossil fuels presently stands at C$50/tCO2, increasing to C$65/t in 2023, and is set to rise to C$170/t in 2030. Of the money collected, 90% is returned through personal income tax rebate cheques and 10% via investments to help businesses and communities reduce their carbon footprint. (National Post)
VOLUNTARY
SBT substance – The SBTi corporate climate target framework body has significant potential to support global decarbonisation, but it must evolve its current framework to accelerate climate action if companies are to effectively meet their climate change goals, offset ratings agency BeZero Carbon said in a report calling on the SBTi to provide clearer guidance on the use of carbon credits to accelerate the corporate transition to net zero. Read Carbon Pulse’s reporting on how the body has historically taken a hard line against the use of offsets for meeting a companies science-based target.
Micro update – Microsoft is introducing a voluntary environmental credit service to its sustainability cloud in a bid to provide a singular infrastructure, the tech giant said in a press release. The company says its automation will secure the lifecycle processes and provide traceable credits. In an interview with news outlet SDX Central, Microsoft’s senior director of sustainability criticised the voluntary carbon market’s lack of transparency.
Gas platform – CG Hub, billed as the world’s first trading platform for certified gas, has been launched to drive greater emissions transparency in natural gas, Gasworld reports. Leading global energy producers, traders, and buyers who will participate in the platform will be announced soon, in a bid to incentivise reductions in global methane emissions. Run by the cloud-based energy trading platform Comet, the platform is being launched in conjunction with non-profit MiQ, which is already certifying 15 bcf per day, with 1.2 bln certificates currently available on its digital registry. Georges Tijbosch, CEO at MiQ, said that while we wait for the world to transition to clean energy, we need to create the infrastructure for the market to deliver change on emissions today. “The hub will bring transparency and drive demand for certified natural gas by taking it from a niche, bilateral trading ecosystem to a thriving, dynamic marketplace,” he stated. Gas traded on the hub must have been certified based on its methane emissions, offering for the first time the chance for multiple players to buy and sell the commodity with a “true understanding” of the emissions impact of each batch.
AND FINALLY…
Countdown to extinction – Earth’s wildlife populations have plunged by an average of 69% in just under 50 years, according to a leading scientific assessment, as humans continue to clear forests, consume beyond the limits of the planet and pollute on an industrial scale. From the open ocean to tropical rainforests, the abundance of birds, fish, amphibians, and reptiles is in freefall, declining on average by more than two-thirds between 1970 and 2018, according to the WWF and Zoological Society of London’s (ZSL) biennial Living Planet Report. Many scientists believe we are living through the sixth mass extinction – the largest loss of life on Earth since the time of the dinosaurs – and that it is being driven by humans. The report’s 89 authors are urging world leaders to reach an ambitious agreement at the Cop15 biodiversity summit in Canada this December and to slash carbon emissions to limit global heating to below 1.5C this decade to halt the rampant destruction of nature. (Guardian)
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