Newsletters > CP Daily: Thursday February 16, 2023

CP Daily: Thursday February 16, 2023

Published 01:47 on February 17, 2023  /  Last updated at 23:46 on February 17, 2023  / /  Newsletters

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

Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here

*Website subscribers: Help us improve Carbon Pulse by taking a moment to complete our feedback survey (open to paid subscribers only)*

TOP STORY

Rising gas and oil demand to drive global emissions 0.5% higher in 2023 -report

Global emissions could increase by 0.5% in 2023 due to higher oil and gas use and strengthening fossil fuel demand in China, though emissions in the EU could see a “very large drop” this year, the authors of a study told a webinar Thursday.

EMEA

Euro Markets: EUAs set new six-month high as traders dismiss impact of REPowerEU auction vote

European front-December carbon recorded its second-highest ever settlement price after rising to its highest in six months on Thursday, as traders shrugged off the bearish impact of the looming additions to auction supply under the REPowerEU plan that was approved this week, while energy markets eased off after two days of increases.

EU green industrial plan sows division among lawmakers

The EU’s Green Deal Industrial Plan caused division among lawmakers on Thursday, as most of the bloc’s largest political group refused to back a resolution, weakening the Parliament’s influence on the legislation.

Ireland lines up emissions deal with Slovakia to meet non-ETS compliance -media

Ireland is due to buy almost €3 million worth of intergovernmental carbon units from Slovakia ahead of a deadline for EU nations to comply with their non-ETS climate obligations, according to media reports.

UK carbon standard launched to spur nature restoration via approved buyers

A UK standard focused on developing native habitat restoration projects for the domestic voluntary carbon market has had its first two projects validated, it said on Thursday, noting that it will only sell its credits to those taking steps to cut their own emissions.

Denmark’s Orsted steps up plans to produce green shipping fuels

Danish energy company Orsted has stepped up plans to enter the clean fuel market for shipping ahead of the maritime sector being introduced into Europe’s carbon market.

ASIA PACIFIC

Australian Market Roundup: Climate wars reignite as ACCU issuances remain scant

The Australian Greens have engaged in a pitched battle with the government over the Safeguard Mechanism, vowing that it will only pass the supporting legislation if Labor agrees to ban new coal and gas developments, while ACCU issuance remained low for a second consecutive week.

Australian start-up forms partnership with European industrial to develop mineral carbonation tech

An Australian low carbon technology start-up has signed a long-term strategic co-operation agreement with Austria’s RHI Magnesita, a supplier of refractory materials for heavy industries such as steel and cement, to help decarbonise the European company’s own global operations, it announced on Wednesday.

China’s Shandong pushes for insurance tools to protect nature-based sinks

The government of Shandong, one of the most populous provinces in China, has said it will encourage innovative insurance products as a tool to protect nature-based carbon sinks generated in the region, following a number of new policies recently introduced by domestic insurers.

Rio Tinto joins trader Marubeni to secure low-carbon aluminium supply chain

Rio Tinto and trading house Marubeni have agreed to a first sale under a new strategic collaboration agreement to secure the supply of the mining giant’s low-carbon aluminium products to downstream Japanese customers, the two companies announced on Thursday.

Digital artwork seeks to create carbon credits based on industrial sabotage, direct action

A digital art exhibition in Melbourne has created its own form of carbon credits that are generated by acts of industrial sabotage, such as blockading coal ports and slashing SUV tyres.

Offset project developer EKI in bid to defend accounting practices as shares continue to tumble

EKI Energy Services on Wednesday sent a letter to India’s BSE stock exchange to address revenue recognition issues flagged by its auditors, as the company’s shares continued to tumble, crashing by some 50% so far this week.

AMERICAS

WCI Markets: CCAs remain in tight range through auction week, as traders look to results for direction

California Carbon Allowance (CCA) prices settled in a tight range amid the first WCI allowance auction for the year on Wednesday, while Washington Carbon Allowances (WCAs) continued to languish ahead of the first cap-and-invest programme auction at the end of the month.

British Columbia releases revised draft forest offset protocol after stakeholder pushback

The British Columbia Ministry of Environment and Climate Change Strategy (MECCS) on Thursday posted a new draft version of the province’s forest carbon offset protocol (FCOP), which incorporates feedback from the previous iteration that saw stakeholders blast its economic viability.

New Brunswick to ditch provincial carbon levy, adopt federal ‘backstop’ charge

New Brunswick Premier Blaine Higgs on Thursday announced the province will halt implementation of its rising CO2 tax on fossil fuels and instead opt for the federal government’s revenue-neutral fee, a change made to align the jurisdiction with the rest of Atlantic Canada.

ICE posts record North American environmental markets volume in 2022 on strength of RECs, LCFS credits

Exchange operator ICE on Thursday announced record volume and participation in North American environmental markets last year, led by the company’s suite of Renewable Energy Certificates (RECs) and California Low Carbon Fuel Standard (LCFS) futures.

VOLUNTARY

Climate financier Aspiration invests $21 mln in Kenyan agroforestry VER project

US-based climate finance company Aspiration on Wednesday announced it has partnered with a non-profit organisation to generate millions of carbon credits from sustainable agroforestry practices in Kenya.

Dedicated carbon removals fund raises £35 mln from investors

A fund targeting the carbon removals industry has raised £35 million from investors.

Carbon ratings firm downgrades US CCS offset projects to lowest rank

A carbon credit ratings agency has downgraded three ACR-certified enhanced oil recovery (EOR) projects in the US to its lowest ranking after a portfolio review.

BIODIVERSITY (FREE TO READ)

Biodiversity Pulse Weekly: Thursday February 16, 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).

IFC expands green bond scheme to include biodiversity, ocean protection

The International Finance Corporation (IFC) has updated its green bonds framework to allow the bonds to also fund biodiversity, ocean, and water protection, opening a new pathway for project finance.

Out of the weeds: Seaweed industry gets boost on both sides of the Atlantic

Amazon on Thursday announced it is funding the world’s first commercial-scale seaweed farm in the North Sea while a US seaweed material tech firm this week raised $6 million in pre-Series A funding, providing a welcome boost to a burgeoning industry considered important in addressing the twin crises of climate change and biodiversity loss.

Oil and gas least on track sector in biodiversity risk disclosure

A European bank has found that the oil and gas sector is the least “on track” in disclosing its nature-based risk in an analysis that considered three of the most exposed industries to nature loss and climate.

—————————————————

*Carbon Pulse has released its Advertising Brochure/Media Pack for 2023. Download it here*

Premium job listings

*New listing

Or click here to see all listings

—————————————————

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 extended to Feb. 28, 2023.

—————————————————

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

Coming for consultancies – The world’s top management consultancies, who for decades have advised the biggest polluters, are now piling into the business of helping companies cut emissions to become more sustainable, Clean Energy Wire writes in an opinion piece. They are retraining staff, poaching environmental experts, and buying up smaller specialist firms as they seek to generate fat fees from the corporate shift towards a net zero future, the article reports. Many NGOs, and even some consultancy insiders, question whether the big advisory firms can really be part of the solution to the climate crisis as long as their primary focus remains on finding ways to maximise clients’ profits and efficiency. Consultants also continue to help fossil fuel clients prop up their businesses and lobby against regulations, while making them and other industries appear greener than they really are. But the advisors, and their clients, are increasingly aware that greenwashing accusations pose a major reputational risk.

Loss of foCCUS – The Institute for Energy Economics and Financial Analysis (IEEFA) has this week published a report rapping ArcelorMittal for its plans to deploy carbon capture, usage and storage (CCUS) technologies at new and existing blast furnaces in the global south – and to open new fossil-fuelled facilities with no CCUS. Under a joint venture with Nippon Steel, ArcelorMittal is developing two new blast furnaces in Hazija, Gujarat, India, with co-located CCUS. It is also planning new integrated steel plants at other locations in India, without CCUS. While proponents of CCUS note that carbon removals will be necessary to avert the worst physical impacts of climate change – and that hard-to-abate industrial sectors are likely to grow through to 2050 rather than shrink – IEEFA expresses concerns about the maturity of CCUS technologies in its report. “There are no full-scale CCUS facilities for blast furnace-based steelmaking operational anywhere in the world and only a few, small pilot projects underway or planned.” IEEFA steel analyst Soroush Basirat said. “In addition to a very limited track record in steel, CCUS has had a problematic and disappointing history in other sectors like power generation and gas production.” Globally, the collective capacity of all operational CCS and CCU plants is estimated to be 38.5 million metric tonnes. These arrays are addressing less than one-thousandth of global emissions annually, which now exceed 50 billion tonnes. (edie)

AMERICAS

What goes up must come down – US GHG emissions bounced back in 2021 from their pandemic lows, but they stayed markedly below 2019 levels, according to an EPA analysis released Wednesday. EPA’s draft annual GHG inventory shows that emissions linked to climate change in 2021 grew by 5.5% compared with 2020 as the coronavirus pandemic relaxed its grip on travel and other economic activity. But emissions that year still came in just under 4% shy of 2019 levels. US emissions of CO2, the most prevalent GHG, remained more than 4% below 2019 levels in 2021, despite a year-to-year increase from 2020 of almost 7%. Overall US emissions are 2% lower than they were in 1990, when recording began. Emissions peaked in 2007 at 15.8% above 1990 levels. Transportation remains the highest-emitting US sector for CO2, while the power sector has been on a long-term decarbonisation pathway. But 2021 saw that trend stall in response to increased power demand and delays in bringing new power projects online. (E&E News)

Crypto climate crackdown – US President Joe Biden’s administration says it’s moving forward with an effort to assess cryptocurrency’s climate impacts. Crypto is struggling after FTX’s demise, and Biden might be about to kick the industry while it’s down to keep it from stalling climate progress, Axios reported Thursday. Sen. Elizabeth Warren (D) urged the US Energy Department (DOE) to require crypto miners to disclose how much energy they use. The White House last year recommended that the department start obtaining this information in a report that raised red flags about the industry’s energy consumption and climate footprint. A DOE spokesperson confirmed it will be “outlining its efforts to evaluate crypto’s energy intensity in the coming months.” Climate advocates are concerned that the sheer energy drag from crypto mining will help keep uneconomic coal, oil, and gas power plants alive.

From sea to shining SEA CO2 – The US Department of Energy on Thursday announced up to $45 mln in funding to support a new programme aimed at facilitating the development of the marine CO2 removal (mCDR) industry through scalable Measurement, Reporting, and Validation (MRV) technologies. In a press release, the department said projects in the Sensing Exports of Anthropogenic Carbon Through Ocean Observation (SEA CO2) programme will develop sensor technologies that can operate at greater spatial and temporal scales sufficient to understand ocean carbon fluxes arising from mCDR, quantify efficiency, and reduce or eliminate uncertainty concerns that limit carbon credit quality. They will also develop regional-scale ocean carbon transport and storage models that integrate and estimate the combined major carbon cycles likely to be impacted by one or more mCDR approaches for selected regions.

Not lacking DACs – DAC pioneer Climeworks is laying the groundwork to develop over a dozen facilities in the US capable of permanently removing CO2 from the atmosphere, E&E News reported. The order and timeline for building those plants will depend on the $3.5 bln DAC hub programme the Department of Energy is overseeing, according to a top company official. The startup plans to take part in up to four proposals for that funding competition, including one that it’s organising along the Gulf of Mexico. “We’re starting already to look at future locations and future projects because there’s so much time that is required to develop those,” Dirk Nuber, the chief project development officer of Climeworks, told the media outlet. “We need another 10, 20 sites in the US to actually get our scale-up roadmap going.”

ASIA PACIFIC

Hydrogen race – Australia’s natural renewable energy advantage in the race to create a green hydrogen industry is at risk of being overwhelmed by “huge and aggressive” policy support in the US and the Middle East, according to Fortescue Future Industries’ Guy Debelle, The Guardian reports. Debelle, formerly FFI’s chief financial officer and now serving as a director, said the Biden administration’s Inflation Reduction Act was mostly aimed at accelerating decarbonisation and was “one of the largest pieces of industrial policy we’ve ever seen”. Without a formal spending cap, it could eventually top $1 trillion. “It’s not just money,” Debelle told a gathering of business economists in Sydney on Wednesday. “It’s actually people, it’s expertise and knowhow, which [are] migrating to the US.” Oil-rich Middle Eastern nations had also “seen the writing on the wall” of a shift off fossil fuels and were pouring resources and making land available for firms to tap renewable energy resources and develop a hydrogen sector. “There’s a risk that, despite Australia’s great comparative advantages in green energy, the US and the Middle East are going to eat our lunch,” Debelle, who was also formerly a deputy governor of the Reserve Bank, said.

Sarawak CCS – Inpex announced it has signed a joint collaboration agreement (JCA) with Petroleum Sarawak Berhad (Petros) concerning the potential development of a carbon capture and storage (CCS) project targeting CO2 emitted from gas fields with high concentrations of CO2, petrochemical industries, power plants, manufacturing industries, and other sources in Sarawak, Malaysia, the company said in a press release. The project is expected to help reduce greenhouse gas emissions in Sarawak and accelerate the decarbonisation of the state’s industries as well as Malaysia as a whole.

Cooperation on methane – Japan’s Osaka Gas has built a demonstration system for “CO2NNEX for e-methane”, a digital platform for visualizing the amount of CO2 emissions across the value chain of such synthesized methane, through partnerships with Mitsubishi Heavy Industries and IBM Japan, the three companies said in a statement released Wednesday. As part of the collaboration, the three partners will also exchange views with other industry peers – including the Japan Gas Association, Tokyo Gas, Toho Gas, and INPEX – to identify effective ways to promote the use of e-methane and establish its environmental value.

More money, please – The Development and Reform Commission of China’s Shandong Province has recently issued a policy draft for the development of carbon finance over the next three years, with plans to formulate related standards and infrastructures in the region, according to an official notice. The scale of carbon bonds is expected to reach 10 bln yuan ($1.46 bln) in the region by the end of 2025, supported by various financial products associated with carbon-related businesses, the provincial government said. Several pilot projects will also be launched to encourage financial institutions to expand their climate financing activities and help corporates to better cope with the impact of the upcoming carbon border tax, according to the draft.

EMEA

Italian energy – A company building wind and photovoltaic power plants in Italy’s regions of Basilicata, Campania, Sardinia and Sicily will receive a loan of €50 mln from the European Investment Bank (EIB) with the support of the InvestEU programme. The money goes to Asja Ambiente Italia, based in Turin, and will contribute to the construction of nine small and medium-sized renewable energy installations. The new plants, which should be operational by 2027, will have a total capacity of 238 peak megawatts (MWp) and will generate around 460 gigawatt hours (GWh) of energy per year, equivalent to the annual consumption of energy of 190,000 households in Italy.

Swedish aid – A €217 mln scheme will support electricity-intensive companies in Sweden, the Commission announced on Thursday. The aid will take the form of direct grants, to cover the additional costs due to the current energy crisis. In particular, the individual aid amount will not exceed 50% of the eligible costs for the maximum aid ceiling of €4 mln and will be granted by the end of 2023.

VOLUNTARY

Now we’re cooking – The UNFCCC, offset certifier Gold Standard (GS), and Clean Cooking Alliance (CCA) on Wednesday announced a partnership to advocate carbon finance opportunities for clean cooking. In a press release, the organisations and agencies noted that more than 2.4 bln people worldwide cook with polluting stoves and fuels, which are responsible for 1 bln tonnes of CO2 annually. CCA, along with UNFCCC and GS, is continually reviewing the latest evidence, and seeking to improve offset methodologies in line with the latest science. CCA convened the first monitoring, reporting, and verification (MRV) meeting at its Clean Cooking Forum in October. CCA will build upon these efforts in a subsequent MRV meeting at the Africa Energy Forum in Nairobi in June 2023 that will discuss potential methodological improvements as part of this ongoing process.

A planeload of SAF – Boeing will more than double its purchases of blended sustainable aviation fuel (SAF) this year to 5.6 mln gal (21.2 mln L) to support its US commercial operations, the planemaker said on Wednesday, according to an article by Reuters the same day. The fuel will be supplied by Neste, the world’s largest SAF producer, Boeing said. The aviation sector has faced pressure from environmental groups to curb its emissions.

AND FINALLY…

Leak Academy: Citizens on Patrol – A plan from the Biden administration to empower private citizens to police oil wells and pipelines for methane leaks is being blasted by industry leaders who say it sets a dangerous precedent.  Under the Super-Emitter Response Program proposed by the US EPA, individuals who have agency-approved expertise and equipment would be authorized to monitor oil industry operations for emissions of the potent GHG and notify companies of any high-volume leaks. Operators would have five days to analyse any credible third-party methane reports and 10 days to fix most leaks. Environmental activists have cheered the proposal, saying it boosts the incentive for oil and gas companies to stifle methane leaks. But the oil industry’s main lobbying body lashed out against it, saying it raises a raft of legal, logistical, commercial, and safety risks, in addition to potentially setting a precedent of tapping private citizens to do the government’s job. (Bloomberg)

Got a tip?  How about some feedback?  Email us at news@carbon-pulse.com

This page is intended to be viewed online and may not be printed.
As per our terms and conditions, the republication or redistribution of Carbon Pulse content can result in the suspension or termination of your subscription.