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COP27
High-level expert group raises bar for net zero credibility
A UN-appointed group released its highly-anticipated report on Tuesday at COP27, providing recommendations on how to bolster the credibility of net-zero emissions commitments, cracking down on greenwashing from non-state actors, such as corporations, investors, and cities.
Stakeholders pile in to support move to stomp out corporate greenwashing
Private sector leaders, climate experts, not-for-profits, and other observers on Tuesday threw their weight beyond an initiative seeking to build credibility and trust around net zero commitments made by non-state actors.
New initiative plans explosive growth in African VCM market to 300 mln credits by 2030
A new initiative intends to put Africa centre stage for the anticipated explosion in voluntary carbon market offset supply, with ambitious plans for the continent to produce 300 mln offsets a year by 2030 and between 1.5-2.5 bln a year by 2050.
World Bank launches results-based payment fund to help countries access international carbon markets
The World Bank has launched an a umbrella fund at COP27 that will help countries to access carbon markets by providing results-based grant payments via pooled cash from donor countries, the private sector, and foundations for projects that reduce emissions, including the monetising of credits from the acceleration of coal phaseouts, a senior member behind the project told Carbon Pulse.
Bloomberg Philanthropies launches effort to standardise, scale VER market
Bloomberg Philanthropies and an investment management firm on Tuesday announced an initiative to scale the voluntary carbon market (VCM), mimicking other efforts over the past two years to provide standardised VER contracts while also increasing CO2 removal capacity.
Mexico beefs up Paris Agreement GHG reduction targets amid legal pressure
The Mexican environment ministry on Tuesday announced the country will submit an enhanced Paris Agreement pledge at the COP27 climate summit, with President Andres Manuel Lopez Obrador’s (AMLO) administration having come under legal challenges for backtracking on the nation’s original commitment.
South Korea, Gabon flag potential Article 6 partnership
Gabon has flagged the potential for a partnership with South Korea, whereby the African nation would provide carbon credits that is said could be used under Article 6.2 of the Paris Agreement to help meet climate goals.
Industry coalition pledges $12 billion to boost use of low carbon tech in hard to abate sectors
The First Movers Coalition, a global initiative launched last year to spur the decarbonisation of heavy industry and the long-distance transport sector, has expanded its coverage into two new energy-intensive sectors and will allocate $12 billion in green technology purchase commitments, US climate envoy John Kerry and the World Economic Forum announced on Tuesday.
CDR certifier to launch in Africa with first projects due in December
An Africa-focused carbon removals certification body aims to launch by registering carbon credit-generating biochar facilities in December, the initiative’s representatives told a panel at COp27 on Tuesday as experts touted the continent’s potential to generate removals at scale.
Roundup for Day 2 – Nov. 8
It’s Tuesday – Finance Day – at COP27 in Sharm el-Sheikh, and Carbon Pulse will keep you updated with developments throughout the day. Timestamps in local time (EEST, GMT+2).
VOLUNTARY
Scope 3 emissions may soon be mandatory under global environmental disclosure platform
The most widely used climate-related disclosure platform said on Tuesday that it will apply an upcoming international standard to its reporting requirements, including Scope 1-3 emissions reporting and carbon offset use by corporates.
VCM originator strikes three-year forward deal to finance Africa’s largest e-bike programme
A major carbon project originator as struck a three-year deal to supply a European origination firm with offsets resulting from the rollout of hundreds of thousands of electric motorbikes in Africa.
US-based carbon credit firm signs MoU with DRC province for offset projects
A carbon credits trading firm based in Massachusetts has signed a Memorandum of Understanding (MoU) with a regional government in the Democratic Republic of Congo (DRC) that aims to attract revenue locally to develop agricultural projects and implement regenerative farming practices.
Climate tech funding round launched to develop GHG removal solutions
Singapore bank DBS launched has launched with a host of partners the second cycle of the Sustaintech Xcelerator initiative, a funding programme kickstarted last year that aims to accelerate the development of climate tech solutions to help businesses reduce their GHG emissions, it was announced on Tuesday.
ASIA PACIFIC
China outlines plans for building material sector to peak emissions by 2030
China’s cabinet has released an implementation plan for the country’s building materials sector, with a special focus on cement production, as part of a broader commitment to peaking carbon dioxide emissions by 2030.
Australia Market Roundup: Total ACCU issuance passes 120-mln mark, as Australia gets involved in forests, shipping at COP
The total number of Australian Carbon Credit Units (ACCUs) issues has now surpassed 120 million despite consistent criticism over some methodologies, while the Labor government has signed up to international forestry and shipping climate initiatives at COP27 in Egypt.
Bank exec joins Australian fund managers to help lead carbon fund launch
A senior investment banking executive has joined an Australian fund management company to help launch a new carbon credit fund.
AMERICAS
Climate Action Reserve developing Panama forestry protocol as carbon market takes shape
Offset registry Climate Action Reserve (CAR) on Monday laid out a timeline for developing a forestry protocol specific to Panama, as the Central American country gears up to launch its own carbon market.
Brazil development bank ratchets up VER spend to $19 mln in second tender
Brazil’s development bank BNDES has agreed to buy BRL100 million ($19.4 mln) in voluntary carbon credits under its second tender process, a large increase from its pilot purchase this spring.
EMEA
Euro Markets: EUAs give up Monday’s gains in illiquid market while gas rallies as EU swerves price cap
European carbon prices gave up Monday’s modest gains on Tuesday as volatility began to dry up in anticipation of political discussions beginning later in the week, while gas prices were higher after the EU appeared to abandon efforts to put a temporary cap on prices.
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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
First payment – Indonesia received an advance payment of $20.9 mln (IDR 320 bln) under the Emissions Reduction Payment Agreement between the government of Indonesia and the World Bank’s Forest Carbon Partnership Facility (FCPF) for reducing emissions from deforestation and forest degradation (REDD+) in East Kalimantan province. Under the Agreement, Indonesia would receive up to $110 mln (IDR 1.6 trillion) for verified emissions from reducing deforestation and forest degradation. Indonesia has become the first country in the East Asia Pacific region to receive payments through the World Bank’s FCPF, which represents 13.5% of the value of the emissions reduction reported in the government of Indonesia’s Monitoring Report for the 2019-20 crediting period. The full payment will be released once the independent third-party verification of the reported emissions reductions, which is currently ongoing, is complete. The advance payment will facilitate the start of the East Kalimantan programme’s Benefit Sharing Plan, which was developed by the government of Indonesia and issued in Oct. 2021. The plan arranges how ERPA payments will be shared with beneficiaries, from national and local governments to East Kalimantan communities. (Mirage News)
Difficulty of diversification – Clean technology factories are shockingly concentrated. Over the past two decades, China has emerged as the world’s battery and solar equipment hegemon. A war in Europe and growing tensions over the Taiwan Strait have made a strong case for diversifying supply. And today’s clean energy supply chains have shown their vulnerability to a host of risks beyond geopolitics. Building the factories needed to meet local demand for battery components, battery metals, solar, lithium-ion batteries, and electrolyzers by, say, 2030 would cost billions. To be precise, about $149 bln in Europe and $113 bln in the US. That the US and Europe will succeed in their ambitions to localise is not a foregone conclusion, according to BloombergNEF analysis.
EMEA
Slow ride – Poland is forced to slow down the process of closing coal mines but will not withdraw from its plans to close all its mines by 2049, announced Polish State Assets Minister Jacek Sasin. The end date for the functioning of the mines remains in place, but “the curve [of shutting the mines down] would be flattened” compared to the initial plans, the minister told right-wing weekly Sieci. “We cannot get dependent on imported coal that is much more expensive than ours. Therefore, we need to delay closing the mines,” Sasin said. Poland has recently announced cooperation with US and South Korean companies on nuclear projects. According to the government’s plan, the country’s first nuclear power plant should be completed in 2033. However, no operational coal mines may be closed until the first reactor is launched, said Sasin. The coal extraction will be slightly higher in the coming months than it was in the previous years, he declared, since the import of coal has already reached the maximum capacity of the ports. The amount of coal that can be used for heating houses should cover the needs of Polish households, according to the minister. (Euractiv)
LNG please – British PM Rishi Sunak is planning to announce a natural gas deal with the US after the COP27 climate summit concludes in Egypt, the Telegraph reports. The paper claims the UK hopes the US will promise to provide about 10 bln cubic metres of LNG next year.
The EU is IRAte – Germany’s finance minister Christian Lindner has warned against a trade conflict between the EU and the US as a result of the American government’s Inflation Reduction Act, news agency dpa reports. The policy introduced by the US puts a focus on clean energy development. However, it “has serious consequences for the European economy. We need to make this clear,” Lindner said at a meeting of EU finance ministers in Brussels. The minister from the pro-business Free Democrats (FDP) instead proposed the EU “reach out” to the US and seek a replacement for the failed transatlantic trade agreement (TTIP). The German minister’s French counterpart, Bruno Le Maire, also takes the risk of a trade conflict seriously and appealed for a “coordinated and strong response” from the EU to US policies. In an interview with business daily Handelsblatt, the French economy and finance minister said possible countermeasures by the EU could include “looking out more strictly for our own interests regarding environmental action when it comes to imports or rules that prioritise European products.” Beyond that, it would be “indispensable” for Europe to ensure lower energy prices for its economy. The IRA includes major investments in climate action and social welfare systems. However, the scheme ties subsidies to quotas for using products made in the US, such as a mandatory share for US-made batteries in EVs subject to tax rebates. The EU has said the US government’s measures discriminate against the EU, as products made in Canada or Mexico are exempt from the policy. (Clean Energy Wire)
ASIA PACIFIC
Earlier peak – Singapore’s CO2e emissions are estimated to peak between 2025 and 2028, earlier than its previous 2030 target, Minister for Sustainability and the Environment Grace Fu said, Channel News Asia reports. Fu was responding in parliament to questions from MP He Ting Ru and NMP Koh Lian Pin about when Singapore is expecting emissions to peak. At the Singapore International Energy Week 2022 last month, Deputy Prime Minister Lawrence Wong announced that Singapore would raise its climate target to achieve net zero by 2050 as part of its long-term low emissions development strategy. Previously, Singapore said it would do so “as soon as viable in the second half of the century”. In her reply, Ms. Fu said that Singapore just submitted a second update to its 2030 NDC to the UNFCCC. In the submission, Singapore indicated that it intends to reduce emissions to around 60 MtCO2e in 2030. This is 5 Mt lower than what Singapore had set out in the first update in 2020.
Not yet – Japan is considering the introduction of a mix between a tax on carbon and emissions trading (in the form of the voluntary GX League) to speed up the reduction of GHG output. However, if there will be a tax it will likely not come next year, Nikkei reports, citing anonymous government officials saying there is little appetite to add to the burden of companies and consumers already struggling with sky-high energy prices.
CCS not hydrogen – Australian independent Santos has reorganised its businesses to prepare for the country’s energy transition with its energy solutions arm forming its own division, along with its traditional upstream and LNG operations in Australia and Papua New Guinea (PNG), Argus Media reports. Santos Energy Solutions is largely centred around carbon capture and storage (CCS), as well as direct air capture, and clean fuels production, which includes hydrogen and renewable synthetic fuels. But Santos chief executive Kevin Gallagher does not see a market for green hydrogen emerging until the end of the decade at least. “The cost of hydrogen is simply too high,” Gallagher told investors and analysts at Santos’ investor day. “Green hydrogen production is eight to 10 times the cost of natural gas, and that is just for the cost of supply. But it also requires trillions of dollars of investment in infrastructure in order to produce green hydrogen,” Gallagher said. Santos is not involved in any hydrogen or ammonia projects, unlike fellow Australian independent Woodside Energy, which is participating in several hydrogen ventures.
Satellite plans – China has rolled out a plan to encourage the development of environmental satellites, with a primary goal of improving its overall monitoring capability by 2035, the country’s environment ministry said in a recent interview. Apart from detecting possible pollution, one of the work priorities is to build a remote monitoring system for carbon sinks and improve the measurement of vegetation productivity, the ministry said. China last month launched a new satellite intended for disaster reduction, emergency management, and environment monitoring, according to state-owned media Xinhua.
SAF trails – Airbus has signed agreements with Xiamen Airlines, Zhejiang Loong Airlines, and Colorful Guizhou Airlines to promote the use of sustainable aviation fuel (SAF) during commercial flights in China, according to the Global Times. Since October, Airbus’ Delivery Center in Tianjin has offered customers the option of 5% SAF fuel blend for all single-aisle A320neos and A350 wide-body aircraft delivery flights. Last month, Airbus said that its Tianjin plant delivered an A320neo to China Eastern Airlines using the 5% SAF as the fuel for the delivery flight.
Carbon comparisons – China has emitted more CO2 over the past eight years than the UK has since the start of the Industrial Revolution, according to an article in the Daily Telegraph. Between 1750 and 2020, the UK emitted 78 bln tonnes of CO2 into the atmosphere, compared with China’s emissions of 80 bln tonnes since 2013. The data follows news that the UK may be open to paying climate change reparations to climate-vulnerable countries and will discuss the issue at the ongoing COP27 summit. China is unlikely to be party to such an arrangement because it still considers itself a developing country. China has emitted 14% of all emissions to date, surpassed only by the US with 25%, according to the article. Meanwhile, the UK has emitted 4.6% of all historic emissions, of which around 80% of these occurred before 1990. Today, the UK emits less than 1% of all global emissions each year, while China is responsible for around 30% a year.
AMERICAS
Coal closures – Due to continued competition from natural gas and renewable resources, 23% of the 200 GW of coal-fired capacity currently operating in the US has reported plans to retire by the end of 2029, according to analysis by the US Energy Information Administration. Between 2012 and 2021, an average of 9,450 MW of US coal-fired capacity was retired each year. In 2022, US coal retirements will total 11,778 MW if the remaining retirements reported to the EIA proceed as scheduled. Planned retirements continue to be focused on relatively older facilities. Coal-fired generators — especially older, less efficient units — face higher operating and maintenance costs, which make them less competitive and more likely to retire.
Last H2 Call – The Pacific Northwest Hydrogen Association (PNWH2), a public private partnership of tribal, labour, government, environmental, and private sector firms, submitted a proposal to the US Department of Energy (DOE) on Friday, applying for funding from the DOE’s $8 bln allotted towards regional hydrogen hubs under the Infrastructure Investment and Jobs Act. The PNWH2 proposal encompasses collaboration between Washington and Oregon to focus on zero-carbon, clean hydrogen production and distribution, hydrogen technology, manufacturing, and power generation, all applied to transportation, agriculture, and commercial end uses, Washington’s Department of Commerce outlined. The DOE’s request for new project proposal funding ends Nov. 15.
VOLUNTARY
New partners, part I – Singapore-based AirCarbon Exchange (ACX) and German and Austrian service giant TUV SUD have partnered to support voluntary carbon market projects moving from concept to reality. The two companies have signed a memorandum of understanding, with TUV SUD providing validation and verification services, and ACX providing the platform to stakeholders looking for finance for carbon projects, or just wanting to issue or trade credits. TUV SUD has experience in over 1,000 global climate change projects under CDM, Gold Standard, and Verra.
New partners, part II – Consultancy Bain & Company on Tuesday announced a strategic partnership with, and invest in, carbon credit ratings agency Sylvera. In a press release, Bain said the partnership will deliver actionable insights into nature and carbon credit initiatives for its clients on their net zero journeys. The partnership will also help Bain’s clients better map their carbon reduction strategies and credit investments while ensuring quality and integrity of VERs and promoting wider transparency across voluntary carbon markets.
SCIENCE & TECH
Nothing but Net – Net Power announced plans Monday to build the world’s first utility-scale gas power plant with carbon capture, which it said would generate electricity with close to zero emissions, Politico Pro reports. Construction on the roughly 300 MW project will start during Q3 2024 near Odessa, Texas, according to the company. North Carolina-based Net Power expects the facility to be online in 2026, putting it in a race to become one of only three full-sized power plants ever equipped to capture CO2 emissions. The announcement comes about a year after Net Power demonstrated its carbon capture technology in a 50MW demonstration project, delivering emissions-free electricity to the grid.
Lowering LNG – Atlanta-based GE Gas Solutions and Shell Global Solutions on Monday announced they have signed a development agreement to reduce the carbon intensity of Shell’s LNG supply projects around the world. GE said the largest source of emissions in an LNG facility stems from firing natural gas in the power generation and mechanical drive gas turbines, meaning that one of the possible paths to decarbonise LNG production is to use hydrogen as a low-carbon fuel in these engines. The company press release touted Shell’s Blue Hydrogen Process as a means to deliver the lowest carbon intensity fuel of its kind.
AND FINALLY…
Doing their Part(anna) – The government of the Bahamas has announced a partnership with building materials maker Partanna that will see the construction of what they call the world’s first carbon-negative housing development. The development of 1,000 “affordable, sustainable” dwellings is comprised of single-family homes, duplexes, triplexes, and multi-family homes constructed from Partanna, which is made of carbon-absorbing brine technology. The new venture “will help to ease the housing shortages that the Bahamas is currently facing, as the country continues to rebuild after the devastation caused by Hurricane Dorian in 2019”. Partanna Bahamas, which was founded by former NBA player Rick Fox, is on track to deliver the first 30 units in 2023. Cement production accounts for 9% of all global carbon emissions, whereas each 1,250 sq ft (116 sq m) Partanna home will contribute a negligible amount of CO2 during its manufacturing process. Every 1,250 sq ft Partanna home removes 22.5 tonnes of CO2 after production, “making it fully carbon negative within the product’s lifecycle”, compared to the 70.2 tonnes emitted by a typical cement home of the same size. “Partanna is made from natural and recycled ingredients, including steel slag and waste brine from the desalination industry, enabling desalination plants to harvest more fresh water per litre processed without discarding brine back into the ocean … Homes made with Partanna are hurricane- and corrosion-resistant, making them ideal for residents of climate-vulnerable areas like the Bahamas and other small island developing states.” Partanna added that Verra has certified its material, meaning that these homes can also generate voluntary carbon removal credits. “The revenues generated from the credits will fund various social impact initiatives – including down payment contributions for low-income families, making homeownership more accessible.”
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