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TOP STORY

WCI Q1 auction clears at highest price in three sales, slightly below secondary market

The February California-Quebec current vintage carbon auction settled at the highest price since last spring and at a slight discount to prevailing secondary market levels, according to government data published Thursday.

AMERICAS

WCI Markets: CCAs jolted by higher-than-expected Q1 auction results, as traders hone in on first Washington sale

California Carbon Allowance (CCA) prices meandered for much of the week before a higher-than-expected February auction settlement sent values upward, as traders began to examine several factors that could influence the clearing price in next week’s inaugural Washington Carbon Allowance (WCA) sale.

Canadian economy continues to decouple from emissions output in 2021 -study

While Canada’s greenhouse gas emissions increased in 2021, the jump in output didn’t keep pace with an economy resurging from an end to pandemic lockdowns, according to a recently released independent analysis showing how the nation’s economic fortunes are being decoupled from pollution levels.

ASIA PACIFIC

Australia launches second round of soil carbon innovation funding, project type considered key ACCU supply source  

The Australian government has launched the second round of its National Soil Carbon Innovation fund with A$20 million ($13.6 mln) available to help ramp up the nascent project type in the country’s carbon market, as analysis flags it as a key carbon credit supply source in the coming years.

New high-emitting projects could derail Australia’s Safeguard Mechanism in its first few years -report

A report has found that emissions from new facilities in the early years of the Safeguard Mechanism could scuttle the government’s climate goals, however it said the scheme would become more resilient towards the end of the decade.

India ETS needs stakeholder engagement, alignment with overseas schemes, think-tank urges

India should align the early phase of its transition towards establishing a carbon market with the development of an emissions trading scheme (ETS) that is similar to what exists elsewhere in Asia and the rest of the world, an Indian energy policy think-tank report has recommended.

Shanghai to hammer out carbon-related standards by 2025

Regulators in Shanghai have jointly released an implementation plan to develop a standard and measurement system for the city regarding its climate goals, which will include a focus on industrial projects and forestry pilots.

CCUS in Asia-Pacific needs boost from cross-border deals, supply chain partnerships -consultants

The Asia-Pacific can realise its significant long-term potential as a CCUS leader with a series of actions by governments and companies, such as kickstarting cross-border CO2 transport and storage deals and developing supply chain partnerships, according to a global consulting firm.

EMEA

EU carbon border tax could cut $16 bln from Africa’s GDP -experts

The EU’s carbon border adjustment mechanism (CBAM) could wipe some $16 billion off Africa’s total GDP, experts told a webinar, with the continent seen as among the most exposed to the divisive policy.

Russia financially hurt by sanctions, as EU accelerates clean energy transition -report

Sanctions against Russia for its invasion of Ukraine is set to cost Moscow more than $1 trillion by the end of the decade, while the response has accelerated the EU’s energy transition, according to analysis published on Friday to mark one year of the conflict.

UK announces further support to subdue industry’s electricity costs

The UK government announced on Thursday its intentions to further reduce electricity-related costs for certain domestic industries, aiming to level the playing field with foreign competitors, but raising questions related to how short-term relief squares with longer-term decarbonisation objectives.

Euro Markets: EUAs erase early losses after exchange publishes missing three weeks of positions data

Carbon prices posted a modest gain on Thursday, cancelling out early weakness as traders reacted to the delayed publication of Commitment of Traders position data showing a key segment of the market had increased its net long position in EUAs, while energy markets were described as quiet.

VOLUNTARY

Voluntary carbon market size grows in 2022, but buyers await new standards

Voluntary carbon market (VCM) prices and volumes experienced a year-on-year increase in 2022, but buyers moderated purchases until final guidance on new standards emerges, according to analysis of an initial dataset of global trends in the sector.

Carbon removal companies create alliance to lobby policymakers

More than 20 carbon dioxide removal (CDR) companies have formed an alliance to promote policies for the nascent industry that could become a trillion dollar market opportunity.

INTERNATIONAL

New partnerships expand modular carbon capture technology, as US govt announces new investments

The race to scale modular carbon capture is hotting up, with two separate announcements on Thursday seeing companies joining forces to scale technologies, with one such partnership actively targeting cost cutting and start-small options to help spur interest from small- and medium-sized industries.

Tech company raises $30 mln to expand energy saving products from buildings into gas pipelines

A technology company that helps reduce energy use in houses and offices has raised $30 million in a series B funding round led by an oil major-backed investment firm.

BIODIVERSITY (FREE TO READ)

Biodiversity Pulse Weekly: Thursday February 23, 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).

Researchers tout plans for Congo Basin to rival Amazon in scientific research

Plans are underway to boost scientific research into the Congo Basin, the second largest rainforest and the most efficient carbon sink in the world, to the same level as the Amazon, a webinar heard Thursday.

Australian sustainable seafood start-up targets global roll-out, biodiversity credits

A new Australian programme that offers subscription-based investments in fish habitat restoration and assisted breeding hopes to build on its current activities to eventually generate tradeable biodiversity credits.

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CONFERENCES

Argus Asia Carbon Conference – Mar. 14-16, Sarawak, Malaysia: Organised by Argus Media in collaboration with the Ministry of Energy and Environmental Sustainability Sarawak (MEESty), and with host sponsor Samling Group, the Asia Carbon Conference will take place on Mar. 14-16 in Kuching, Sarawak, Malaysia. Join us for the first industry leadership conference for carbon offsetting and trading in Asia to get ahead of your competitors in a rapidly growing global market. This is your opportunity to interact, learn, and network, for the answers you need on fundamental questions about carbon offsets: how do they work, and how might they impact Asia? Find out more

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.

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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

Ajay walking – The US government has nominated Indian-American businessman Ajay Banga to lead the World Bank, citing his experience in mobilising finance to tackle climate change. President Joe Biden said the former Mastercard executive “has critical experience mobilising public-private resources to tackle the most urgent challenges of our time, including climate change”. Banga is currently an advisor to General Atlantic’s climate-focused fund, BeyondNetZero, has sat on the boards of big corporations like Dow Chemicals and has worked with US Vice President Kamala Harris on her Central American policies. The nomination was met with mixed reactions, with former Senior Vice President and Chief Economist of the World Bank Nicholas Stern praising the move, and the Revolving Door Project campaign group urging Biden to retract it, adding “nothing in Banga’s resume inspires confidence that he will turn the World Bank away from a path of neocolonialism and predation by Global North corporations upon Global South countries”. The US is the bank’s biggest shareholder and traditionally picks its president so it is likely that Banga will replace David Malpass when he steps down in June. (Climate Home)

Application time – UN aviation body ICAO on Thursday launched a call for applications from emissions standards to supply CORSIA-eligible units for the scheme’s 2024-26 first compliance period.  The deadline for both new and re-applicants is Mar. 24, 2023, with the Technical Advisory Body (TAB) also scheduling a webinar to inform stakeholders on Mar. 8. The TAB last year delayed until Mar. 2023 the release of its recommendations for re-eligibility based on a re-assessment of existing standards. The panel was in 2020 tasked by the ICAO Council with monitoring and reviewing the continued eligibility of these programmes beyond CORSIA’s pilot phase (2021-23), and it launched the process in early 2022 with the aim of presenting these recommendations at this autumn’s Council session. The TAB said seven CORSIA-eligible standards responded to its call for applications to undergo re-assessment, as the UN’s CDM and China’s GHG Voluntary Emission Reduction Program did not seek approval past this year. Recommendations on eligibility for CORSIA’s first phase will be made to the ICAO Council at its Mar. 2023 meeting.

AMERICAS

A letter to the law – A group of US Republican congressional leaders announced Wednesday the publication of a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler regarding the commission’s proposed climate-related disclosure rule, arguing that the rule exceeds the SEC’s authority, and accusing the SEC under Gensler of pursuing a “progressive social agenda,” ESG Today reported. The SEC released its proposed climate disclosure rules in Mar. 2022, which would require US companies to provide information on climate risks facing their businesses, and plans to address those risks, along with metrics detailing the companies’ operational climate footprint, and in some cases emissions emanating across their value chains. The updated rules are expected to be released in April. The letter follows the formation earlier this month by Republicans in Congress of an “ESG Working Group,” led by Bill Huizenga, aimed at coordinating the party’s approach to ESG proposals, and setting a key focus area to “rein in the SEC’s regulatory overreach.”

CCS funding – The US Department of Energy on Thursday announced $2.52 bln in funding for two carbon management programs to catalyse investments in transformative CCS and carbon transport and storage technologies. Funded by President Biden’s Bipartisan Infrastructure Law, the two programs — Carbon Capture Large-Scale Pilots and Carbon Capture Demonstration Projects Program — aim to significantly reduce CO2 emissions from electricity generation and hard-to-abate industrial operations, an effort critical to addressing the climate crisis and meeting the President’s goal of a net-zero emissions economy by 2050.

Gulf get – The US Department of the Interior announced Wednesday a first-ever offshore wind sale in the Gulf of Mexico, proposing two lease areas offshore Galveston, Texas, and one offshore Lake Charles, Louisiana. The Gulf of Mexico lease sale is part of Interior’s previously stated goal to hold seven new offshore lease sales by 2025 and deploy 30 GW of offshore wind capacity by 2030. The White House also announced Wednesday that California and Louisiana have joined the Federal-State Offshore Wind Implementation Partnership, joining 11 East Coast states. (Utility Dive)

EMEA

Drax gain – UK government ministers are under pressure to cut subsidies to the operator of Britain’s biggest power station after it reported an 84% increase in annual profits, helped by high electricity prices. Drax posted underlying profits of £731 mln for 2022, up from £398 mln a year earlier, the Guardian reports. Drax, which has faced criticism over its use of biomass, has benefited from soaring power prices over the past year. Electricity prices are linked to wholesale gas costs, which have risen sharply since the Russian invasion of Ukraine. Drax’s biomass power station of the same name supplies around 6% of the UK’s electricity. The utility confirmed it had now closed two coal plants in March which had been requested by the UK government to remain on standby over winter due to the energy crisis.

Superbonus down the drain – The Italian government led by Prime Minister Giorgia Meloni has cancelled the country’s ‘superbonus’ scheme directed at renovating buildings and improving energy efficiency, EurActiv reports. The measure was introduced in May 2020 as part of a programme to kickstart the Italian economy after the pandemic. The scheme granted 110% of renovation expenditure to homeowners to cover the costs. Meloni said the scheme was too expensive and was open to fraud.  The Five Star Movement defended the scheme it created saying the figures the Meloni government had come up with were false. The move by the Italian government shows its reluctance in adopting energy efficiency and renovation measures – the government has already voiced its staunch opposition to the EU’s energy performance of building directive (EPBD)’s key measure of renovating the worst-performing buildings.

Guten news – Germany is unlikely to face gas shortages next winter, the Institute for Economic Research (DIW) has said in a report. Following a halt of Russian gas deliveries into Germany in September 2022, “no supply emergency has occurred because other sources of supply could be activated quickly and demand has fallen relatively sharply,” the institute said. While gas saving efforts in the industry remain important, natural gas supply can be maintained in 2023 through imports from Norway, Belgium and the Netherlands, as well as Germany’s new floating liquefied natural gas (LNG) import terminals, according to the report. “Energy supply in Germany is secure even without natural gas from Russia,” the authors write, adding that “scenarios in February 2023 suggest that supply shortages are not expected in the coming winter either.” According to the institute, in the most likely scenario a supply of around 87 bln cubic metres could meet demand as long as gas consumption remains 12% below the 2018-21 average. Last year, Germany used 14% less gas. If 95% of Germany’s LNG import capacities are utilised, supply could be maintained at about the same level as in previous years, totalling around 94 bln cubic metres, DIW said. However, “Germany would have to secure sufficient LNG supplies on the world market, which is a challenge for German importers on this scale.” Willingness to pay higher prices could help overcome this challenge, according to the report authors. (Clean Energy Wire)

ASIA PACIFIC

Blowin’ in the wind — The Australian government has launched a consultation on creating a new offshore wind zone off the Hunter Valley coast in New South Wales. A statement from Climate Change and Energy Minister Chris Bowen noted the Hunter region was already a manufacturing powerhouse, and that an offshore wind industry in the region could help support the decarbonisation and future of onshore manufacturing. The government estimates the offshore wind industry could create 3,0000-8,000 jobs in Australia every year, and could help transition workforces away from existing offshore industries, such as oil and gas. The consultation is open to submissions from today until Apr. 28. The government noted the Hunter is one of six priority regions around Australia that have “world-class” offshore wind potential. The Hunter would be the second offshore wind zone declared by the government, following the Gippsland region, offshore Victoria, with the same status.

More hydrogen – Infinite Green Energy is working up plans to use its recent purchase of the 11MW Northam solar farm, east of Perth, to produce up to four tonnes a day of renewable hydrogen via electrolysis, RenewEconomy reports. The Perth-based company, chaired by former Woodside CEO Peter Coleman, revealed this week that Samsung C&T was now a part of these plans, after signing an MoU to collaborate on delivering the green hydrogen project. Coleman says the capital raising will allow it to progress the Northam project to final investment decision, including plans to expand the solar farm’s capacity to 18 MW and connect a 10 MW electrolyser and add a truck loading terminal. The A$110 million construction of the phase one of the so-called MEG HP1 project is targeted to be completed in 2024, with Infinite Green expected to close a A$3 million capital raising this month to progress the project.

Disclosure matters – China is planning to make ESG disclosures compulsory for listed companies as part of efforts to shift to a lower-carbon economy, according to Bloomberg. Regulators are working with advisory bodies and rating agencies to formulate a framework for mandatory ESG disclosures for companies listed in China, with state-owned public enterprises expected to take the lead on compliance by as early as the end of the year. To catch up with international trends, the country has rolled out a set of voluntary guidelines for domestic companies to report ESG metrics. Although the vast majority of the top 100 Chinese firms issued ESG reports voluntarily last year, more than a third made disclosures without first performing so-called “materiality assessments” to determine whether the indicators they were reporting on were relevant to their businesses, the report said.

‘Clean’ trucks – Shanghai-based Shenergy Group has unveiled the world’s largest hydrogen-powered mining truck as part of its commitment to building a domestic hydrogen value chain, China Daily reports. The mining truck, which adopts hydrogen fuel cell engine systems provided by Kunhua Technology, can substantially reduce the operating costs of such vehicles, Shenergy said. The company recently set up a joint venture with France-based Plastic Omnium to manufacture high-pressure hydrogen storage systems for China’s commercial vehicle market.

VOLUNTARY

Soil carbon credits – Boston-based Indigo Ag, a sustainability partner of the agriculture industry, on Thursday announced the completion of its second carbon crop, consisting of more than 110,000 agricultural carbon credits. Issued by the Climate Action Reserve, Indigo’s second crop of credits was produced by US farmers enrolled in its carbon farming program, Carbon by Indigo. With sustainable agriculture gaining momentum as a vital tool to combat climate change, the need to scale nature-based solutions is climbing to an all-time high. Indigo’s first carbon crop – issued in June of 2022 and consisting of more than 20,000 credits – established the company as the first to ever generate verified, registry-issued agricultural carbon credits at market scale. The credits were produced by nearly 430 farmers across 22 US states, including existing and new farmers and new fields in their operations.

SCIENCE & TECH

Carbon sinks – The global net land carbon uptake or net biome production (NBP) of land carbon sinks have increased, according to study published in the journal Nature on Wednesday. Using two atmospheric-inversion models recording atmospheric CO2 concentration levels from nine monitoring stations across the Pacific Ocean, researchers found that between 1981–2018, annual NBP and its variability between decades increased globally. Researchers observed that regions characterised by increasingly variable NBP were associated with warm regions with increasingly variable temperatures. The study found that nitrogen deposition generally increased NBP. Rising temperature and its increasing variability appear as the most important drivers of declining and increasingly variable NBP. The regions most at risk typically have less forest cover and more cropland, are warmer, and have experienced greater rises in temperature, which could be related to an increase in extreme weather events, such as heatwaves and cold snaps, Science Daily explained. Patrick McGuire, co-author of the study said, “We found that large regions of the world are vulnerable to sudden and dramatic changes to their landscape, because the ability of their ecosystems to absorb carbon starts to destabilise. For example, forest fires in California are more likely because of extremely dry and hot conditions caused by a hotter atmosphere. More fires means forest turns to scrubland, sometimes permanently. This reduces the land’s overall ability to suck carbon out of the atmosphere as it did before.” The areas identified as most at risk include the Mediterranean Basin, Southeast Asia, and the west coasts of North and Central America.

Carbon sources – The world’s forests are losing their ability to absorb carbon due to increasingly ‘unstable’ conditions caused by humans, a landmark study has found. Dramatic changes to forests, and other habitats that store carbon in plants and soils, are becoming more likely in some regions across Earth, with less carbon consistently absorbed by the ‘land carbon sink’ provided by trees, soil and plants, according to scientists writing in Nature. The short-term impacts of rising temperatures, deforestation, and farming on many vulnerable landscapes means carbon stores on land are less likely to recover in the longer term, the scientists say. This reduces the overall storage capacity of the land to absorb carbon and undermines global efforts to curb or reduce levels of GHGs in the atmosphere. (ScienceDaily)

Seagrassing Wales – 5 mln seagrass seeds will be planted off Wales’ coast in the UK to create climate change-fighting underwater meadows, reports the BBC. Seagrass Ocean Rescue wants 10 hectares (25 acres) of seagrass meadow by 2026. Some 50,000 seeds were laid at Penychain off the Llyn Peninsula in Gwynedd. In December the project was granted a marine licence to conduct restoration trials and was awarded a £1 mln grant from the National Lottery Heritage Fund. The project is being managed by the green group WWF in partnership with the Project Seagrass charity, Swansea University, North Wales Wildlife Trust and Pen Llyn a’r Sarnau Special Area of Conservation. World Wildlife Fund Cymru’s Rory Francis said Wales had lost 92% of its seagrass over the past 100 years, but it was possible to “recreate, restore and replant” it. One hectare of seagrass could provide a habitat for 80,000 fish and 100 million invertebrates, according to Seagrass Ocean Rescue.

AND FINALLY…

Teenage kicks – A 17-year-old from Seattle, Akash Shendure, is tracking the climate impacts of billionaires’ private planes through his website called ClimateJets.org. Shendure earned notoriety when his Twitter account was blocked for sharing Elon Musk’s trips via his private jet. The teenager uses publicly available data to link names with carbon emissions estimates, providing the public with a real insight into who is impacting the climate the most. Nearly half of humanity’s carbon emissions can be attributed to 10% of the global population, according to the Climate Inequality Report. (Mother Jones).

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