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TOP STORY

FEATURE: Scientists push for more geoengineering testing as first “carbon cooling” credits emerge

Scientists are calling for increased research and governance into solar geoengineering as the controversial practice may be deployed to help curb warming amid accelerating climate change, cautioning against the current free-for-all that has resulted in the first privately-funded “carbon cooling” credits.

AMERICAS

WCI jurisdictions foreshadow rulemaking processes to tighten linked cap-and-trade programmes

The California and Quebec governments on Tuesday divulged forthcoming plans to strengthen their carbon markets linked under WCI, which among other topics will include evaluating annual emissions caps and banked allowance supply in order to reach more ambitious GHG reduction targets.

California’s ARB to vote on tightening cap-and-trade programme by end-2024

California regulator ARB’s Board will vote on the state’s forthcoming regulatory package to strengthen the WCI-linked carbon market by the end of 2024, with those changes potentially going into effect the following year, a government official told a watchdog meeting on Tuesday.

RGGI states set date for next programme review meeting after 15-mth wait

The RGGI states next month will host the first meeting since 2021 of the cap-and-trade market’s third programme review, intending to assess the successes, impacts, and design elements of the Northeast and Mid-Atlantic US power sector scheme.

Canada sets green procurement standard for federal contracts

Canadian Prime Minister Justin Trudeau’s administration on Tuesday announced that major government suppliers will need to disclose their GHG emissions and implement science-based GHG reduction targets, mimicking a recent proposal south of the border.

EMEA

ANALYSIS: How EU efforts to banish F-gases clash with clean energy plans

EU legislators have a delicate task crafting law to eliminate F-gases used in fridges and air conditioners, because the potent climate-heating substances are also found in many of the heat pumps expected to play a critical role in the bloc’s efforts to reach net zero emissions.

Euro Markets: EUAs stall at €100 amid volatile spreads and further bearish analyst forecasts

European carbon prices stalled at around €100 for much of Tuesday and traded in their narrowest range for three months, while time spread values fluctuated sharply as traders continued to seek a definitive direction, and more analysts issued cautious reports predicting prices may decline.

EU’s second ETS struggles to balance affordability with emissions cut incentives -report

The EU’s upcoming second ETS covering buildings and road transport may not be enough to deliver emissions cuts by individuals and small businesses, according to an analysis published this week.

Macroeconomic environment may not support rally in EUA demand despite lower energy costs -analysts

The wave of bullish sentiment that has driven EUA prices to record highs in the past week does not reflect market fundamentals and is unlikely to prevent a pullback because macroeconomic factors are likely to exert an influence for much of the current year, according to bank analysts.

Gunvor secures borrowing to boost EU carbon trading, expand into new markets

Commodities firm Gunvor Group will boost its trading in EU Allowances and look to extend activities to other carbon markets globally after secured new borrowing.

UK government completes issuance of 2023 allowances

The UK government has issued carbon allowances for 2023 to stationary installations and aviation operators in the British carbon market, the market operator said on Tuesday.

VOLUNTARY

PREVIEW: Stakeholders sceptical for progress on carbon at Gabon forest summit

Stakeholders in African forest carbon expressed scepticism about the prospects for significant progress on channelling sufficient funding to the sector during an upcoming summit to be held in Gabon, with the role of carbon credits also expected to be a significant point of discussion.

Oil firms inks intent to expand nature-based carbon activity in Ghana

A European oil firm has signed a letter of intent with the forestry commission of Ghana to secure as many as 1.2 million credits from nature-based carbon projects in the country as part of a jurisdictional REDD+ deal, local media sources reported.

UK timber planting fund raises less than a third of its target

An investment company has raised £242 million ($293.5 mln) from UK local government pension schemes for the initial close of a new global sustainable timberland plantation fund, far short of its $1 bln target.

Carbon offsets enter catastrophe bonds for first time with reinsurance deal

Two reinsurance companies on Monday announced $125 million of collateralised reinsurance cover that includes a first of its kind carbon offset feature for the environmental impact of rebuilding homes after natural disasters.

Norway invests $3.5 mln in direct air capture pilot

Norway’s government has invested NOK 36.3 million ($3.5 mln) in a direct air capture pilot project, the first funding provided by the country for the technology, according to a release Tuesday.

ASIA PACIFIC

Transparency issues brought to the fore in Safeguard Mechanism Senate hearing

The Australian carbon market’s largest project aggregator has told a Senate committee its landholders are “genuinely concerned” that their projects would be undermined if their land data were released into the public domain, given the high level of scrutiny currently surrounding the scheme.

ANALYSIS: Devil in the details for Indonesia, Vietnam JETP deals

The Just Energy Transition Partnership (JETP) deals made with Indonesia and Vietnam represent significant initial breakthroughs in transitioning these key Asian economies from coal reliance, but their longer-term impact will largely depend on how the agreements will be operationalised by both governments to bring about an earlier coal-phase out date, according to analysts.

Australian corporate watchdog takes company to court over alleged greenwashing

The Australian federal market watchdog has launched its first court case against a company over greenwashing allegations.

Verra restores account of one PNG REDD+ project, suspends another

Verra has restored the registry account of the developer of a REDD+ project in Papua New Guinea after it had temporarily suspended it to investigate allegations aired by an Australian news programme, but has suspended another REDD+ project in the country.

NZ commits R&D funding to cut agricultural emissions, looks to decide on int’l crediting arrangements before election  

The New Zealand government has committed NZ$9 million ($5.5 mln) in its upcoming budget to support research and development into cutting agricultural GHG emissions, as it expects to make a decision on how to fund its international crediting arrangements before the next election.

INTERNATIONAL

Switzerland authorises first Paris Agreement emissions transfer deal with Thailand

Switzerland has authorised another emissions trade transaction under Article 6.2 of the Paris Agreement, striking a deal with Thailand for the first time as it continues to leverage bilateral agreements between nation states to meet its climate targets.

BIODIVERSITY (FREE TO READ)

Asian investor group launches deforestation initiative

A major Asian investor organisation on Tuesday launched an initiative to support regional investors in developing risk management processes and investment policies to help ending deforestation.

COMMENT

Solar Radiation Modification – an additional tool to fight global warming? 

Solar Radiation Modification might provide an auxiliary tool to help reduce climate risk, limit suffering, lessen ecosystem degradation and improve the chances of sustainable development, but SRM is far from perfect, write scientists Claudia Wieners, Ben Hofbauer, Iris de Vries, Matthias Honegger, Daniele Visioni, Herman Russchenberg, and Tyler Felgenhauer in an open letter already supported by around 50 global scientists.

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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

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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

Long live the statistical review – The new custodian of the Statistical Review of World Energy is to be the Energy Institute (EI), the chartered professional membership body for people who work in energy, it was announced by the previous custodian of the review, oil major BP, in a press release. Published for more than 70 years by BP, the annual publication is the most comprehensive, objective, and timely collection and analysis of global energy production, consumption, and emission data, BP said in the release. It has been published annually by the energy company since 1952. From this year onwards it will continue as The Energy Institute Statistical Review of World Energy. BP will provide continuing support. As the EI’s new Partners, KPMG and Kearney have also committed funding and sector expertise. Data compilation will continue to be undertaken by the Centre for Energy Economics Research and Policy at Heriot-Watt University. An advisory board will be established bringing together respected energy thought leaders and experts to provide strategic oversight of the publication.

Moving things forward – The UN has set a date for crunch talks over funding for climate victims despite Asia-Pacific developing countries’ failure to nominate their two representatives, Climate Home reports. The move piles pressure on the block to choose its members or risk the world’s biggest continent going unrepresented at talks on setting up a loss and damage fund. At last November’s COP27 summit, governments agreed to set up a fund for vulnerable communities hit by climate disaster – a breakthrough after years of stalemate. They said a 24-member transitional committee should work out the details of this fund, such as who pays, who benefits and who oversees how money is spent on the ground, ahead of the next major conference in Dubai. Governments agreed to nominate the committee’s members, which are carefully divided on geographic and wealth lines, by Dec. 15, but they were slow to pick their members. Two months after the deadline, just 10 of the 24 had been chosen. According to the UN’s website, the Asia-Pacific group of developing countries has yet to pick its two nominees. A source with knowledge of deliberations said seven Asia-Pacific governments wanted their candidates chosen. These delays have sparked fears that the process, and much-needed funding for climate victims, would be delayed.

EMEA

Leaving Europe – Shell’s top executives explored moving the Anglo-Dutch energy group to the US in a proposal that threatened to deliver a hammer blow to London, the FT reports. Wael Sawan, the oil and gas group’s new chief executive, was among a group of top managers who in 2021 discussed the advantages of shifting the company’s listing and headquarters to the US, the article stated. The executive team – where Sawan oversaw oil, gas, and renewables before his move to the top job this year – ultimately decided to leave the Netherlands but consolidate its base and stock market listing in London. Shell is the UK’s largest company, with a market capitalisation of £176 bln and revenues of £316 bln. Its loss to the US would crystallise fears about London’s status as a financial centre.

Beyond foresight – Current clean technology trends put the EU on track to reach 45% renewable energy by 2030 according to new analysis published on Tuesday by think-tank Ember, putting the block in an likely position to exceed the 40% target set by the Fit-for-55 package. Solar power capacity in 2030 is now expected to be at least twice that originally forecast by EU policy, while heat pump deployment is expected to be 50% higher than Fit-for-55 forecasts, and electric vehicle rollout 30% higher. In response to Russia’s invasion of Ukraine, the European Commission’s REPowerEU plan proposed raising the bloc’s 2030 renewable energy target from 40% to 45%, a move overwhelmingly supported by the European Parliament. However, some Member States are resisting this shift towards higher ambition, with negotiations expected to continue in March. “A new energy reality has unfolded across Europe since the Fit-for-55 package was presented eighteen months ago,” said Elisabeth Cremona, energy and climate data analyst at Ember. “Sticking with the lower [40%] target means aiming for failure,” she added.

Cut the red tape – UK renewable energy expert Bureau Veritas is urging the government to streamline the planning process for onshore wind farms. The current planning restrictions for onshore wind turbines are hindering progress, it said, making it essential to make changes as part of the forthcoming “Levelling Up” bill. “Onshore wind power is one of the most cost-effective and scalable renewable energy sources available today,” said Mauricio Pereira, head of renewable energy at Bureau Veritas. “However, despite its enormous scope, the deployment of onshore wind turbines has been significantly constrained by planning regulations,” he added. The organisation noted that  since an effective planning ban came into force in England in 2015 there have been hundreds of onshore wind projects that have been shelved, even as the cost of renewable energy generation has fallen dramatically over the past decade. “This is exactly why the planning process needs to be more efficient,” Pereira said.

UAE carrot – Less than a third of industry-sector executives believe that they have enough funding to cover their decarbonisation objectives, according to a report released on Tuesday by UAE-government owned renewable energy company, Masdar, during Abu Dhabi Sustainability Week. The report “Hard to Abate, Ready to Start” polled over 500 executives, finding also that some 60% have not yet set net-zero targets, with respondents citing the reliability of financing as the main barrier to accelerating these commitments. Ahead of the UN’s COP28 climate talks, the UAE hosts said that finance and capital will be made a priority, noting that both governments and private sector partners require the resources needed to commit to transformative action. “COP28 will see the conclusion of the Global Stocktake, offering a review of progress against the Paris Agreement. We know that the results will show a significant gap in where we are and where we need to be,” said Sultan Al-Jaber, UAE Minister of Industry, COP28 President-Designate, and Chairman of Masdar. “Addressing carbon emissions in hard-to-abate sectors is a priority in that regard. There is simply no path to net-zero that does not include decarbonising these essential industries,” he added.

ASIA PACIFIC

Cut those emissions – South Korea has outlined its strategy to achieve carbon neutrality in the industrial sector by focusing on technology solutions, with an aim to cut 120 MtCO2e by 2050, Argus reports. Representative firms from the four major carbon-emitting industries — chemicals, steel, cement and semiconductor/displays — formed a consortium as part of the country’s strategy to promote technology development and signed a business agreement to share development results, the country’s trade and industry ministry (Motie) said. These four sectors emit 190 Mt/year, accounting for 72% of 260 Mt of total industrial emissions in 2018. Technology innovation is the only way to cut carbon emissions in these sectors’ production processes because of the nature of these industries, Motie said.

Renewables bill – In Japan, a bill for partial revision of legislation to establish an electricity supply system geared toward the realisation of a carbon-free society was approved by the government and submitted to the Japanese diet, the Ministry of Economy, Trade, and Industry (METI) stated in a press release. The aims of the bill are to improve the environment for the introduction of renewable energy and promote additional investment for maximum utilisation of renewable energy. In addition to responding to turmoil in international energy markets caused by Russia’s invasion of Ukraine, and the tightening of power supply and demand in Japan, a green transformation (GX) is required, according to METI.

The grass is greener – In China, Juno Capital has signed a contract with the government of Aksu prefecture in the western Xinjiang autonomous region to develop a grassland carbon sink project, they announced this week. The Aksu region contains some 3.45 mln hectares of grassland across two cities and seven counties, though much of it is in need of restoration. The project, for which Juno and Aksu prefecture will seek to earn carbon credits though it is not clear under which standard, will initially focus on Wensu and Wushi counties, they said.

Counting carbon – Japan’s Nomura Asset Management (NAM) has launched the nation’s first product that includes avoided emissions and carbon removals in quantitative assessments of climate-related opportunities for companies. NAM will apply an internal carbon price on avoided emissions and removals, and use the output in assessing impacts of climate-related opportunities as a ratio of companies’ operating income, it said.

VOLUNTARY

Climate-conscious commodities – S&P Dow Jones Indices (S&P DJI), a leading index provider, has announced the launch on Tuesday of a first-of-its kind commodities index which incorporates environmental metrics. The S&P GSCI Climate Aware is a broad-based commodity index which is intended to offer market participants with ongoing exposure to the global commodities sector that is in line with its parent benchmark, the S&P GSCI. However, through the application of environmental factors in its rules-based methodology, the S&P GSCI Climate Aware index is unique because it reallocates the weights of its constituents away from higher-intensity fossil fuels and shifts them to commodities that are crucial to the global energy transition while maintaining an allocation to the food commodities that sustain life. “As a pioneer in developing sustainability-oriented benchmarks for more than two decades, S&P Dow Jones Indices is proud to offer this innovative index that reflects the growing market appetite and opportunity to incorporate environmental criteria in the global commodities sector,” said Fiona Boal, head of commodities and real assets at S&P DJI.

Let’s get digital – Gold Standard on Monday announced a readiness phase for a new digital asset model, the next step in its progress towards the creation of digital assets linked to its carbon credits, alongside the release of feedback from its recent public consultation on the topic. In March 2023, Gold Standard will initiate a readiness phase of a new model for digital asset creation, integrated with the Gold Standard Registry. In this phase, Gold Standard will conduct structured consultations with invited organisations from web3 and other sectors, to assess the suitability and completeness of potential new guidelines for the creation of digital assets, as well as engagement on the development of enabling software. This will include five web3 companies – Toucan, Flowcarbon, Thallo, Earthchain, and Bitgreen – invited on the basis of their active participation in the Gold Standard-led Working Group on Digital Assets for Climate Impact, which launched in August 2022 to explore best practice principles to leverage the advantages of distributed ledger technologies as well as safeguards to avoid perverse incentives, double counting, or other risks.

A “Quantas” leap for sustainability – Airbus and Qantas Airways plan to announce the first investment from a $200 mln fund to develop a sustainable aviation fuel (SAF) industry in Australia within about a month, an Airbus executive said on Monday, Reuters reported Sunday. The companies established the fund last year after Qantas set a target of using 10% SAF in its fuel mix by 2030 and placed a multibillion-dollar order for Airbus narrowbody and widebody planes. Australia lacks an SAF industry, meaning Qantas’ purchases of the fuel are made at overseas airports.

JetGreen – JetBlue on Monday announced a partnership with climate tech company CHOOOSE as part of its ongoing focus on sustainability and advancing the use of Sustainable Aviation Fuel (SAF). JetBlue customers will now be able to join JetBlue in championing SAF adoption through a dedicated climate platform powered by CHOOOSE. The platform enables customers to estimate the CO2 emissions of their flights and then address these emissions by contributing to a fund dedicated to covering the cost premium of SAF as compared to conventional jet fuel. JetBlue views SAF as the most promising avenue for addressing aviation emissions in a meaningful and rapid way – once cost-effective SAF is made available commercially at scale. SAF can lower lifecycle GHG emissions by roughly 80% compared to traditional petroleum-based fuels while reducing particle and sulfur pollution.

AMERICAS

Recommendation rescinded – Maryland Governor Wes Moore (D) did an about about face Tuesday when he rescinded his nomination of a natural gas industry official to state utility regulator, the Public Service Commission. Moore committed to transitioning Maryland to 100% renewable power by 2035 in his inaugural address just one month ago, making his nomination on Monday of Juan Alvarado, senior director of energy analysis at the American Gas Association all the more surprising. After facing criticism from groups like the Sierra Club, Governor Moore pulled his support from Alvarado just one day after announcing it. (Washington Post)

SCIENCE & TECH

Funding call – Global miner Anglo American along with EIT Raw Materials, an EU-funded raw materials network, has launched a competition to find innovative small companies developing ways to reduce GHG from the global steel sector, responsible for 8% of CO2 emissions, Reuters reported on Tuesday. Anglo’s decarbonised ventures team will assess shortlisted companies for potential investment and access to the group’s expertise. Anglo, which produced 59.3 Mt of iron ore last year, aims to halve its Scope 3 indirect emissions by 2040. EIT Raw Materials has a portfolio of about 300 start-up companies targeting a range of sectors, including exploration, processing, recycling, and substitution, the report noted. The group’s 300 members partner with another 600 firms from the European Raw Materials Alliance.

AND FINALLY…

Shell suits are back – Bloomberg profiles TomTex, a two-year-old US startup that makes textiles out of shrimp shells, mushroom waste, and other biomaterials that aim to address the apparel industry’s significant carbon footprint. Globally, apparel makers emit more GHGs than aviation and shipping combined, and the UN Environment Programme estimates that by 2050, the fashion industry could use up a quarter of the world’s carbon budget. At a glance, the shrimp leather doesn’t look much different than its traditional cousins made from animal hide; it feels fairly authentic, too. And while the fabric doesn’t have any of the rich smell of cow leather, neither does it smell anything like seafood.

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