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TOP STORY
Singapore to list eligible carbon credits for emitters covered by carbon tax in “standard setting” move
Singapore will publish later this year a ‘whitelist’ of international carbon credits that will be eligible for companies to use to partially offset their liable emissions under the country’s carbon tax scheme, the Minister for Sustainability and the Environment, Grace Fu, announced in parliament.
VOLUNTARY
Open interest in CME’s nature-based futures falling fast amid REDD+ troubles
Open interest in CME’s nature-based futures for the voluntary carbon market is dropping fast as the impact of claims of widespread over-crediting in the REDD+ avoided deforestation market continues to shake confidence in standardised products.
Green groups endorse forest carbon credits, update integrity guide
A coalition of eight prominent environmental and Indigenous Peoples organisations published new guidance on Thursday, endorsing forest carbon credits and providing guidance to help steer would-be buyers towards high-integrity transactions in the wake of related media scrutiny.
The pure pitch: Developer seeks buyout to scale water and climate clean-up
A carbon project developer is hoping to urgently scale an approach that simultaneously improves clean drinking water and reduces GHG emissions, noting that corporates will increasingly be on the hook to demonstrate investments in social, as well as climate benefits.
Wealth manager inks another carbon removals deal as it transitions from avoidance-based offsets
A global financial services firm on Thursday announced its third procurement of multi-year carbon removals in as many months, as the company aims to reach net zero emissions by 2030 and transition away from avoided-emissions credits.
Cleantech investment platform launches second fund, targets €75-100 mln raise
An Amsterdam-based cleantech venture capital platform is launching a second investment vehicle, which will target raising €75-100 million – roughly double its first fund.
EMEA
EU leaders hold off on “sensitive” green tech talks as Ukraine draws focus
Talks among EU leaders on a response to the US IRA green subsidy plan got held up on Thursday, as much of the first day of the two-day European Council summit focused on how to support Ukraine.
EU Parliament’s environment committee approves ETS reforms
The European Parliament’s environment committee (ENVI) approved on Thursday a provisional deal to reform the EU ETS, an interim step in the formal adoption process to pass the bill into law.
Euro Markets: EUAs end higher in quiet trade after lawmaker panel approves market reform package
EUAs ended Thursday higher after a relatively strong auction result and as a panel of lawmakers approved the bloc’s carbon market reform package, while energy prices extended a five-day losing streak even as weather forecasts suggested a drop in wind generation in the coming week.
Utility RWE reports 3.3% rise in ETS-covered emissions for 2022
Germany-based utility RWE, historically the EU’s top corporate emitter, reported a 3.3% rise in its ETS-covered thermal power output for 2022, it said on Thursday, upping its demand for carbon allowances for the second straight year.
Greenpeace to sue over EU taxonomy’s green label for gas and nuclear
Greenpeace aim to take legal action against the European Commission over the inclusion of fossil gas and nuclear energy in the EU’s list of sustainable investments, the NGO announced on Thursday.
Switzerland schedules second auction for 2022 ETS allowances
Switzerland has scheduled a second auction for 2022-vintage carbon allowances under its emissions trading scheme (ETS).
INTERNATIONAL
Green group lodges case against Shell directors for failures on climate
Environmental activist group ClientEarth has filed what it called a world-first lawsuit against oil major Shell’s board of directors for failing to manage risks to the company from climate change, the London-headquartered group announced on Thursday.
OECD gathers more than 100 nations in fresh effort to drive coordinated emissions cuts
The OECD launched a new working group on Thursday, gathering more than 100 countries to share best practices on how to cut global emissions, and aiming to coordinate policies and provide the data necessary to compare efforts across geographies.
Steelmaker ArcelorMittal uncertain on China demand but sees rebound elsewhere
ArcelorMittal, the world’s second-largest steelmaker, expects its shipments to increase by around 5% this year driven mainly by a demand rebound in the EU and US, it said in quarterly results published Thursday that also gave a less certain outlook on Chinese consumption.
AMERICAS
WCI Markets: CCA prices slide on lack of catalysts ahead of Q1 auction
California Carbon Allowance (CCA) prices reversed from early-week gains in recent days as traded volume dried up ahead of next week’s quarterly auction, while Washington Carbon Allowance (WCA) activity stayed quiet ahead of the first sale for the state’s own cap-and-invest programme later this month.
Canadian hydrogen tax credit presents climate risks without proper design, green groups warn
Canada’s proposed investment tax credit for clean hydrogen could result in higher emissions and less energy efficiency, according to an open letter to Deputy Prime Minister Chrystia Freeland sent on Thursday and signed by 55 environmental organisations and 110 academics.
ASIA PACIFIC
AU Market: ‘Frothy’ ACCU market corrects as rally cools, but future still bright
The spot price for Australian Carbon Credit Units fell A$2, or 5.6%, on Thursday, as the price corrected slightly following flurry of activity in January following the release of the Safeguard Mechanism paper and the results of the Chubb review.
EIB backs green hydrogen for India in €1 bln agreement
The European Investment Bank (EIB) will provide indicative funding of €1 billion to promote the green hydrogen sector in India, the EU bank and a local industry group, the India Hydrogen Alliance (IH2A), have jointly announced.
China should introduce phased regulatory framework for climate disclosure -report
China needs to introduce a phased regulatory framework and clearer guidelines for companies to conduct climate-related information disclosure, given emerging challenges in the sector, according to analysts.
BIODIVERSITY (FREE TO READ)
Biodiversity Pulse Weekly: Thursday February 9, 2023
A weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).
Trading firm eyes first biodiversity credit trade, role in market roll-out
A global trading firm with a special interest in environmental markets is in the process of negotiating its first voluntary biodiversity credit transaction, as it seeks to play a part in developing the emerging market.
COMMENT
How the voluntary carbon market can help decarbonize cement
As investment begins to pour into decarbonization technologies and innovative infrastructure projects sprout across the globe, the new energy economy faces a conundrum: carbon-intensive building materials. Project developers and sustainability consultants ClimeCo discuss how companies can use the voluntary carbon markets to help decarbonise their cement-related emissions.
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Premium job listings
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- Project Portfolio Manager, Carbon Credits, CL-Invest – Oslo
- Regional Sales Director, Carbon Credits, CL-Invest – Oslo
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- Manager, Assurance and Review Management, Gold Standard Foundation – UK/Germany/India (Remote)
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CONFERENCES
North American Carbon World (NACW) 2023 – Mar. 21-23, Anaheim: For 20 years, the NACW conference has been the place for carbon professionals working in North American carbon markets and climate policy to learn, collaborate, and network. Taking place Mar. 21-23 in Anaheim, California, NACW 2023 will dive into new policies and developments that will shape and scale carbon markets and climate solutions with integrity, ambition, and equity. Register now to gain actionable insights for bold climate solutions and participate in premier networking opportunities with an active and engaged audience to strengthen your organization’s strategy for navigating the carbon landscape.
European Climate Summit (ECS 2023) – Mar. 28-30, Lisbon: Registration for the 5th edition of the European Climate Summit organised by IETA and partners is open. The ECS brings together leading private sector experts and policymakers from both the carbon and energy world, to analyse and discuss the current developments and pressing challenges. The summit provides a discussion and networking forum for policymakers, business leaders, and innovators involved in building, scaling, and collaborating on markets for net zero. The event will feature high-level plenaries, cross-cutting deep dives, interactive side events, and quality networking opportunities. Registration here.
ANNOUNCEMENT
Call for Expression of Interest to join the Climate Action Data Trust User Forum. Climate Action Data Trust has launched a Call for Expression of Interest to join the CAD Trust User Forum. The Initiative is looking for a variety of stakeholders across the carbon market value chain, from both the public and private sector. The purpose of the User Forum is to act as a market sounding board for the Council and the Technical Committee on business, policy, and technical matters. CAD Trust is a decentralised meta data platform that links, aggregates and harmonises all major carbon registry data to enhance transparent accounting in line with Article 6 of the Paris Agreement. Deadline for Applications: Feb. 15, 2023.
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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
Going global – Oil giant ExxonMobil is creating a global trading division to compete more aggressively with the likes of BP and Shell in the high-risk, high-reward world of energy derivatives. The new division will bring together Exxon’s crude, natural gas, power, and petroleum-product desks, the company said in an email to employees that was seen by Bloomberg. It’s part of a wider corporate reorganisation that also will establish a global business hub to manage finance and procurement, and a new supply-chain unit. Global Trading, to be formed later this year, will focus on “driving commercial intensity and ultimately delivering industry-leading trading results,” according to the email sent on Thursday. Specific details such as hiring targets and capital commitments were not disclosed.
AMERICAS
California greenin’ – The Los Angeles City Council voted unanimously Wednesday to move forward with an $800-mln plan to convert the city’s largest gas-fired power plant to green hydrogen – a first-of-its-kind project that was hailed by supporters as an important step to solve the climate crisis but slammed by critics as a greenwashing boondoggle that will harm vulnerable communities. The vote authorized the LS. Department of Water and Power to begin the contracting process for revamping Scattergood Generating Station, which sits along the coast near El Segundo. DWP plans to install turbines capable of burning significant quantities of hydrogen, which has never been done before on such a large scale. The fuel would be produced from water, with renewable electricity splitting H2O molecules into hydrogen and oxygen atoms. The city-run utility hopes to ultimately convert its other gas plants to hydrogen as well: Harbor and Haynes farther down the coast, and Valley Generating Station in Sun Valley. Those facilities wouldn’t be fired up often, but they would help Los Angeles keep the lights on during times when there’s not enough solar and wind power to go around, such as hot summer nights. (Los Angeles Times)
Douglas fir demise – California forests suffered from a sharp increase in tree deaths in 2022 as the state grappled with drought, disease, and insect pests, the US Forest Service said. An annual aerial survey found more than 36 mln dead trees across California, including more than 26 mln across 19 national forests. The survey showed 2.6 mln acres (1.1 mln ha) of tree mortality. The biggest increases were in fir trees, such as Douglas fir, which recorded 3 million deaths, the survey indicated. That was an increase from 170,000 in 2021. (E&E News)
Annapolis ambition – Maryland Democrats are eyeing sweeping new policies to advance the state’s ambitious clean energy targets now that they have an ally in the governor’s office for the first time in years. The Free State was one of four in the country to gain a Democratic trifecta in its state government after last November’s election, in which Gov. Wes Moore (D) cruised to victory. With Maryland’s legislative session now in full swing, elected officials are looking to reduce offshore wind bottlenecks, shake up the state’s Public Service Commission, and ensure that the state reaches the emission reduction targets of its new landmark climate law. (E&E News)
CCUS worth it – The world’s largest carbon capture facility has been offline for three years due to falling oil prices, but the $1 bln Petra Nova plant in Texas is scheduled to begin running again, Bloomberg reported Thursday. Owned by British energy firm JX Nippon, Petra Nova will enter operations once the coal-fired power plant it serves is finished being repaired. The Inflation Reduction Act significantly subsidises CCUS operations through tax credits and is likely an incentive for restarting operations as well. The construction of Petra Nova received $195 mln in US federal grant money and the facility previously shipped its captured carbon to a Hillcorp Energy-owned oil field for enhanced oil recovery.
CCUS not worth it – CCUS is expensive, unproven at scale, and Canada’s oil industry risks holding on to stranded assets if it addresses its emissions problem with CCUS, according to a study by the International Institute for Sustainable Development published Thursday. The institute urged the Canadian federal government not to put any more public money into CCUS. There are currently seven CCUS projects in Canada, all in the oilsands, and 30 globally. An ongoing CCUS project by the big six oilsands firms in Canada, called Pathways, aim to develop a C$16.5 bln facility and take up the lion’s share of the sector’s commitment to reducing emissions. (Canadian Press)
EMEA
Secret coal – The intensive use of German coal power plants led to additional emissions of 15.8 Mt of CO2 in 2022, according to a report by consultancy Energy Brainpool. Due to the energy crisis caused by Russia’s war in Ukraine, Germany temporarily reopened due-to-be decommissioned coal power plants last year to avert gas shortages, which resulted in more CO2 being released. According to the authors, the emissions are additional because they are not accounted for in the EU ETS. Germany’s total emissions amounted to about 750 Mt last year. (Clean Energy Wire)
Swiss staying – Switzerland will not join the EU’s proposed mass exit from the Energy Charter Treaty (ECT), according to the official responsible for engaging on the issue. This week, the European Commission has proposed a joint EU exit from the controversial agreement over fears its protections for fossil fuel investments will slow down climate action. The Swiss energy ministry’s Jean-Christophe Fueeg told Climate Home his country, which is not an EU member state, is not leaving. The UK government said it is “closely monitoring the situation”.
Losing lawsuit – A court in Germany has sided with BMW and rejected a lawsuit brought against the automaker by climate activists, Jalopnik reported Tuesday. The Environmental Action Germany group, or Deutsche Umwelthilfe (DUH) — as the group is known in Germany — hoped the lawsuit could convince the courts to tell BMW to stop selling ICE-equipped cars by 2030, according to the Associated Press. The DUH argued that allowing BMW to continue selling combustion-powered cars poses a threat “to people’s right to property, health, and life” given these cars’ GHG emissions. But a court in Munich threw the suit out on Tuesday, citing “no threat of illegal encroachment” upon anybody’s rights on the part of BMW. The court qualified its ruling by saying that there was no current threat, at least.
ASIA PACIFIC
Write downs — Australia’s biggest carbon polluter, AGL Energy, is planning a major push into EV home charging, battery storage, and rooftop solar, as it tries to manage its switch to renewables from its coal-fired power fleet that contributed to its A$1.1 billion ($765 mln) loss in the first half of the financial year, RenewEconomy reports. The company reported that A$706 mln of the loss came as a result of write downs to its fossil fuel assets, significant hedging losses, and reduced operating earnings caused by breakdowns and outages at some of its key coal generating assets. AGL intends to close its Liddell coal fired power station in Victoria in April, and has brought forward the closure date of its other coal-fired power stations, with the last one scheduled to shut in 2035. The company is building new big batteries at Torrens Island, Broken Hill, and Liddell. The company has announced plans for 12GW of new wind, solar, and energy storage. CEO Damien Hicks told shareholders that up to one-third of this will come from a push into decentralised assets, such as EV charging, home batteries and orchestrated rooftop solar.
Under investigation – A former top official at China Energy Investment Corporation (China Energy), one of the country’s largest energy groups, is facing a disciplinary review and supervisory investigation, China Daily reported. Li Dong, former deputy general manager of China Energy, is suspected of seriously violating the party’s disciplines and national laws, according to a statement released by the Central Commission of Discipline Inspection of the Communist Party of China and the National Commission of Supervision, the country’s anti-graft watchdog.
Hydrogen hysteria – A world leader in zero-emission technology and New Zealand-based start-up, Fabrum, has raised $23 mln to help lower the carbon economy across the world, Idealog reported Thursday. Founded in 2004, Fabrum has a global reputation as an innovator in industrialised small to medium-scale liquefaction systems and composite cryogenic vessels. The company provides end-to-end liquid hydrogen solutions across the world for the heavy transport, mining, and aviation markets. Fabrum has received funding from leading venture such as AP Ventures, Obayashi Corporations, and K1W1, giving the company opportunity to take their technology across the world to meet the growing demand for end-to-end hydrogen systems. Investors such as AP Ventures and Fortescue Future Industries say they are pleased to work with Fabrum in developing “world-leading applications” for the “hard-to-abate” sectors.
SCIENCE & TECH
Fertile ground for cuts – Researchers have calculated the carbon footprint for the full life cycle of fertilisers, which are responsible for approximately 5% of total GHG emissions – the first time this has been accurately quantified – and found that carbon emissions could be reduced to one-fifth of current levels by 2050, ScienceDaily reported Thursday. The researchers, from the University of Cambridge, found that two thirds of emissions from fertilisers take place after they are spread on fields, with one third of emissions coming from production processes. Although nitrogen-based fertilisers are already known to be a major source of greenhouse gas emissions, this is the first time that their overall contribution, from production to deployment, has been fully quantified.
AND FINALLY…
Oh, bugger – Climate change is heightening the risk posed by antibiotic-resistant viruses, according to research published Tuesday by the United Nations Environment Program. The report found so-called superbugs have been exacerbated by climate change due to increased bacterial growth caused by warmer temperatures and pollutants that have increased the spread of antibiotic-resistance genes. The analysis notes that overuse of antimicrobials and pollutants can spread resistance, while contact with resistant microorganisms can create resistance in bacteria already present in air, water and soil. Pollution associated with wastewater, particularly from hospitals, is a major factor, as well as runoff from pharmaceutical production and agriculture, according to the report.
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