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TOP STORY
Paraguay lawmakers introduce carbon credit regulatory framework bill
A group of Paraguay senators has put forth legislation that would set up a national carbon offset registry and help track the transfer of credits abroad, with the country required to hold back a portion of these units to meet its own Paris Agreement target.
AMERICAS
Nova Scotia earmarks more free allowances to utility, alters auction purchase limits to address compliance shortfall
The Nova Scotia government has approved several changes to its outgoing cap-and-trade programme to provide emitters with compliance pathways, including giving millions of free permits to the Canadian province’s utility and letting entities purchase more allowances than usual, according to a government order seen by Carbon Pulse.
Fuel producers support higher CI reductions, oppose avoided methane crediting phase-out in California LCFS
Clean fuel producers and one high-profile electric car manufacturer this week expressed their support for more stringent GHG reduction targets in an upcoming California Low Carbon Fuel Standard (LCFS) rulemaking, but industry groups opposed a proposed phase-out of avoided methane crediting, according to public comments.
Financial entities scoop up CCAs, as producers exit California and RGGI positions over two weeks into early March
Financial players boosted their net long California Carbon Allowance (CCA) holdings but shed RGGI Allowances (RGA) over a two-week stretch into early March, while compliance entities offloaded permits across North American carbon markets, data from the US Commodity Futures Trading Commission (CFTC) showed this week as the agency continued publishing backlogged Commitments of Traders (COT) reports.
WCI current vintage auction size inches down for Q2 sale
A summary of legislative, regulatory, and policy action on carbon, clean fuel standard, and clean energy markets at the US federal and subnational levels this week, including a sponsorship memorandum for a Republican-led Pennsylvania low-carbon fuel standard (LCFS).
US Carbon Markets and LCFS Roundup for week ending Mar. 17, 2023
A summary of legislative, regulatory, and policy action on carbon, clean fuel standard, and clean energy markets at the US federal and subnational levels this week, including a sponsorship memorandum for a Republican-led Pennsylvania low-carbon fuel standard (LCFS).
ASIA PACIFIC
Sold out: Bursa Malaysia wraps up first carbon credit auction
Bursa Malaysia’s new carbon trading platform, Bursa Carbon Exchange (BCX), completed its first carbon credit auction on Thursday, which saw domestic buyers purchase all the available 150,000 Verra-registered carbon credits, the stock exchange announced.
Australian regulator hints at possible ACCU supply shortage
Safeguard Mechanism entities needing Australian Carbon Credit Units (ACCUs) to comply with the scheme may face insufficient supply as issuance growth is slowing down while demand is accelerating, the Clean Energy Regulator (CER) said on Friday.
CN Markets: CEA trading volume plunges despite release of allocation plan, supply outlook unclear
Weekly trading volume in China’s emissions market plunged over the past week despite the announcement of the long-awaited allowance allocation plan, with observers remaining cautious about the supply outlook in the absence of key policies.
Indonesia could save trillions by moving up net zero target by a decade, report says
Indonesia can avoid up to $3.8 trillion in investment requirements and achieve an earlier peak in its emissions if it targets net zero emissions by 2050 instead of its current goal to reach it ten years later, provided it prioritises low-cost renewable energy over costlier alternatives, a report released on Friday has found.
Japanese firms team up for forest credit data platform
A major foresty company in Japan has teamed up with a leading telecommunications company to develop a cloud-based data platform exclusively for forest carbon credits, with a demonstration project set to be launched in April this year.
EMEA
Euro Markets: EUAs recover from 7-week low as late rally belies renewed risk-off mood
EUA prices settled marginally higher on a volatile Friday after earlier dropping to a seven-week low, shedding 12% over the week in the heaviest trading in a year as other markets turned sour amid renewed concern that turmoil in the banking sector may spread.
Member states broach subject of putting carbon removals in EU ETS
EU legislation for a certification scheme for voluntary carbon removals should also give clarity on whether removals should be included in the EU ETS, a handful of the bloc’s environment ministers said this week.
INTERNATIONAL
UN seeks advice to fill gaps in work to design carbon crediting mechanism
The body responsible for determining which project types will be issued with UN-backed emissions credits under Article 6 of the Paris Agreement opened a call for inputs on Thursday, seeking outside help after struggling to reach consensus on topics such as permanence, additionality, and overall ambition.
VOLUNTARY
New carbon project developer raises seed funding from commodity trader
A new carbon project developer has raised $2 million in seed funding from trading and supply chain logistics company Kemexon, and opened offices in Mexico City and Geneva.
BIODIVERSITY (FREE TO READ)
Sustainable investment firm closes €170-mln ocean fund
A London-based sustainable investment provider has closed its Blue Ocean Fund at €170 million, making it the world’s largest VC fund focused on the regeneration of ocean health.
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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
Carbon Forward Asia – May 2-3, Singapore/Online: Carbon Forward is coming to Asia! Join us in Singapore or watch the conference online, and gain valuable insights into the trends and developments in carbon pricing throughout the Asia Pacific region. We will discuss investment opportunities across compliance and voluntary carbon markets, as well as transport initiatives such as CORSIA and SAF for aviation and shipping sector programmes, the impact of the EU’s carbon border adjustment mechanism (CBAM), CCS crediting, developments under Article 6 of the Paris Agreement, corporate climate goals, and other exciting topics. We are curating a high-level programme for this rapidly-evolving region, with the agenda and speaker line-up to be released soon. Early Bird tickets are now available. Purchase yours now
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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
EMEA
Women in carbon – The Women in Carbon Initiative (WIC) is holding an evening launch event in London on Mar. 22 at the offices of ratings agency BeZero Carbon. The WIC is a project designed to empower and amplify the voices of women in the carbon industry by fostering collaboration and connection. It seeks to provide a safe and supportive environment for women in the carbon Industry to share their stories, experiences, and perspectives in the industry. The theme of the launch event is “Unlocking the carbon market: Its players and opportunities” which will showcase the exceptional work of female leaders who have made significant contributions to the carbon industry. The speakers are Amy Ruddock (Carbon Engineering), Maria Filmanovic (Abatable), and Aisha Rodriguez (VCMI).
Nuclear stand-off – Seven EU states have strengthened their resistance to efforts by France to count nuclear energy towards EU renewable energy targets. Governments negotiating revised 2030 renewable energy targets have been deadlocked by a dispute over whether countries can meet the goals using “low-carbon hydrogen” produced from nuclear power. Oh Thursday, ministers from the seven countries – Austria, Denmark, Germany, Ireland, Luxembourg, Portugal and Spain – wrote to the Council presidency calling for the targets to be kept free of non-renewable energy sources as this would decrease climate ambition and slow the rollout of renewables, Reuters reported. France, Poland, the Czech Republic and six other pro-nuclear EU countries warned that excluding nuclear from the targets would slow development of hydrogen fuel. Read Carbon Pulse’s coverage on the EU’s efforts to define renewable hydrogen.
Road block – The EU’s ambitious climate agenda is beginning to unravel after a last-minute decision by Germany to block a ban on new combustion engines was followed by other capitals raising objections in a bid to shield their industries, the FT reports. Limits on pollution from heavy trucks and industrial-scale farms are among rules that member states want to weaken, as governments grapple with how to pursue climate goals amid high inflation and uncertainty over energy prices. Domestic surveys show that two-thirds of the population oppose the phaseout. Niels Fuglsang, a Danish socialist politician involved in negotiations on EU energy efficiency rules, described lawmakers as being in “a battle” over the green transition as they contend with pressure to ease energy prices for industry and balk at the costs of climate action.
Coal shoulder – Companies running the UK’s three remaining coal-fired power stations told Sky News that they will not be able to commit to new emergency power contracts next winter, despite a government request to do so. The UK government asked the National Grid to extend this winter’s contingency coal contracts through to the end of next winter.
Transport planning ahead – Transport for London that operates the tube and other services in the UK captial has this week published its first climate change action plan as it looks to respond to the escalating impact of extreme weather events on the capital’s transport network. The transport operator warned climate change is now an “urgent issue”, highlighting how in the last few years alone it has faced severe disruption to its network from heavy rainfall and flooding in July 2021, high winds and storms in Feb. 2022, and the impact of the record-breaking heatwave last summer. TfL said these adverse weather conditions affected its entire network, causing safety issues, lost revenue, and increased costs through emergency responses to get operations back up and running and the cost of repaired damaged assets.
ASIA PACIFIC
Bilateral deal – Leaders from Singapore and Indonesia have signed a memorandum of understanding (MOU) to develop renewable energy generation projects in Indonesia, both for domestic needs and for export to Singapore, The Edge reports. Known as the Green Corridor Project, it will attract an estimated $50 billion of foreign direct investments to Indonesia, reducing the country’s national determined contributions (NDCs), and transferring renewable energy knowledge and skills into Indonesia. According to the Sustainable Energy Association of Singapore (SEAS), the Green Corridor plan is to develop a green manufacturing industry, creating “tens of thousands” of green jobs for Indonesians.
Another bilateral deal – The US has announced new programs in Pakistan including a four-year $4.5 million “Fertiliser Right” Program from the US Department of Agriculture to strengthen fertilizer efficiency and effectiveness for Pakistani farmers, DND reports. USAID will also launch a Climate Finance Development Accelerator Program in 2023 to mobilize domestic and international finance for expanding clean energy in Pakistan. It will also catalyze investments for climate mitigation and adaptation efforts through policy reform, awareness raising, and enhancing the role of the private sector. In addition, the USAID will provide technical assistance to help the government of Pakistan scale up its Voluntary Carbon Market, easing the tracking and trade of carbon credits. USAID will facilitate a roundtable in Karachi in 2023 around the future of “green” shipping in Pakistan.
Yet another bilateral deal – Indonesia’s Ministry of Energy and Mineral Resources (MEMR), through the Directorate General of Oil and Gas (Migas), in collaboration with Australia’s Department of Climate Change, Energy, the Environment Water (DCCEEW), held an Energy Dialogue “CCUS Work Stream Meeting 1-Policy/Regulatory Knowledge Exchange” according to an MEMR press release. This event is a follow-up to the signing of a Letter of Intent (LOI) between MEMR and DCCEEW on The Establishment of an Energy Dialogue on Sept. 1, 2022, where the two countries have compiled energy cooperation programmes in several workstreams, including CCUS, energy and infrastructure, with scope for knowledge sharing activities, networks, policy workshops, and site visit activities.
Pacific call – Pacific Island governments committed to create a “Fossil Fuel Free Pacific” and called for all countries to join them in managing a global, equitable, and unqualified phase out of coal, oil and gas, according to a press release from climate research group Oil Change International. This commitment comes after the Vanuatu and Tuvalu hosted the 2nd Pacific Ministerial Dialogue on Pathways for the Global Just Transition from Fossil Fuels in Port-Vila, Vanuatu, during a state of emergency after the country was hit by two severe cyclones and an earthquake in 48 hours. At the close of the three-day meeting, Ministers and officials from a block of six Pacific countries – Vanuatu, Tuvalu, Tonga, Fiji, Niue, and the Solomon Islands – agreed on an outcome resolution, named the “Port Vila Call for a Just Transition to a Fossil Fuel Free Pacific” that calls for action from Pacific and global leaders to adopt a Pacific Island Forum Leaders Declaration for a just transition to a “Fossil Fuel Free Pacific” as soon as possible, spearhead the global phase out of coal, oil and gas production in line with global temperature goal of below 1.5C, join the Beyond Oil and Gas Alliance and urge major oil and gas producers to join, call for a Fossil Fuel Non-Proliferation Treaty and lead the creation of a global alliance to negotiate a new treaty to govern the end to fossil fuel expansion, equitable phase out of fossil fuels, and a global just transition, redouble efforts to reaffirm, strengthen and codify legal obligations with respect to the global phase out of fossil fuels, and avoid terminology such as “unabated” or “inefficient” that creates loopholes for fossil fuel producers and polluters.
AMERICAS
Off target – US energy-related CO2 emissions will drop 25% to 38% below what they were in 2005 by 2030, according to the US Energy Information Administration’s (US EIA) projections in its Annual Energy Outlook 2023 (AEO2023). The US EIA uses 2005 as an emissions reference year because the US’s nationally determined contribution (NDC), submitted as part of the Paris Agreement, calls for a target of 50% to 52% of net GHG emissions below the 2005 level by 2030. By the end of the AEO2023 projection period, 2050, US energy-related CO2 emissions are 17% lower in this year’s AEO Reference case compared with last year’s, after the US EIA accounted for many of the effects of the Inflation Reduction Act (IRA), energy technology costs and performance updates, a changed macroeconomic outlook, and other factors. The US EIA’s projected reductions in US energy-related CO2 emissions are driven by increased electrification, higher equipment efficiency, and renewables deployment in the electric power sector. Emissions reductions are limited, however, by longer-term growth in US transportation and industrial activity.
Settle the (carbon) score – If you want to know how much a congressional bill is going to cost, you take it to the US Congressional Budget Office to figure it out. If you want to know the climate effects, there’s nothing similar – until now. Washington DC-based think-tank Resources for the Future (RFF) this week launched its Carbon Scoring Project, which will “provide policymakers with quantitative and qualitative climate information about their bills, reported in a standardised and accessible format.” The RFF team will estimate various bills’ effects on GHGs, consumer prices, equity, power generation, and more. The first step is creating a baseline, using analysis of the new climate law, to compare new legislation against. They’ll begin with climate bills and then branch out. More, faster, and transparent analysis about how bills would affect US progress toward its climate goals is needed, backers say (Axios)
Somewhere I belong – A lawsuit filed by several Colorado municipalities accusing ExxonMobil and Suncor of exacerbating climate change belongs in state court where it was filed, President Joe Biden’s administration told the US Supreme Court on Thursday. The administration urged the justices to reject the oil companies’ petition for review of a Feb. 2022 appeals court’s ruling that sent the case back to state court, a venue generally considered more favourable to the municipal plaintiffs. The Denver-based 10th US Circuit Court of Appeals remanded the case after concluding that none of the grounds cited by the companies to change the venue supported giving federal courts jurisdiction. The venue question is a key point of contention in roughly two dozen lawsuits filed by states and municipalities against major oil companies alleging they concealed and misrepresented the dangers associated with burning fossil fuels. (Reuters)
Clean fuel fee – Washington’s Department of Ecology (ECY) announced on Wednesday the final 2023 participation fee for the state’s Clean Fuel Standard (CFS) programme that kicked off at the start of this year. The state’s 35 deficit generators would pay $50,649 each, totalling $1.8 mln – or 95% – of the total cost of running the programme. The 95 credit generators would pay $982 each, amounting to $93,300 – or 5% – of administrative costs. ECY calculated the fee based on 130 registered participants as of Mar. 15.
VOLUNTARY
VCM initiative – Environmental philanthropy High Tide Foundation on Thursday announced the Carbon Policy and Markets Initiative. The initiative aims to accelerate ambitious climate action and capital mobilisation through robust rules and guidance for voluntary corporate action and disclosures, and by building the next generation of high-integrity carbon and environmental services markets. The programme will build on High Tide’s existing work in the area, including as a core funder of the Integrity Council for the Voluntary Carbon Market (ICVCM).
First reforestation in Virginia – Forestry leaders from the Commonwealth of Virginia government and representatives of GreenTrees, the largest reforestation programme operator in the US, on Thursday planted tree seedlings to officially launch Virginia’s first-ever reforestation project that will generate carbon removal credits for sale on environmental markets, according to an announcement. In the new project, GreenTrees will plant 60,000 trees on 38 hectares (95 acres) in Fauquier and Shenandoah Counties, planting five varieties of hardwood trees, including oak, yellow poplar, and sycamore. “As policymakers and companies nationwide and in Virginia are banking on trees to play a critical role in reducing our carbon footprint, we’re excited to support the launch of Virginia’s very first reforestation project for generating carbon credits that help curb the impacts of climate change while delivering revenue to landowners,” said Matthew Lohr, Virginia Secretary of Agriculture and Forestry. GreenTrees provides the resources for individual landowners to change their land use to forests, measure the biomass growth annually, and convert that annual growth into carbon credits. For the past 20 years, GreenTrees has pioneered reforestation in the US and worked in public-private partnership with government entities to empower landowners to participate in a vibrant, voluntary carbon credit market.
SCIENCE & TECH
Mining for emission cuts – Mining Newmont, the world’s biggest gold miner, has partnered with the US National Renewable Energy Laboratory (NREL) to study a new approach for direct air sequestering of carbon in mine tailings. The rapid electrochemical mineralisation to form dolomite (REMineD) method will be explored in the three-year $4.3 mln project. Co-funded by the US Department of Energy’s Office of Fossil Energy and Carbon Management Technology Commercialization Fund, the project aims to advance the development of CO2 removal technologies. It is seen as integral to meeting global climate goals. The NREL will lead the work with partners, including the University of California Los Angeles, Lawrence Berkeley National Laboratory, and the Missouri University of Science and Technology. According to Newmont, CCS is an emerging process that can be used to carbon-neutralise hard-to-abate emissions. Sequestered in tailings, carbonate minerals can be converted into durable products that replace CO2-intensive concrete used in construction. (Mining.com)
AND FINALLY…
Don’t remember the Alamo – The Texas State Board of Education changed its guidelines last month to “emphasise the ‘positive’ aspects of fossil fuels in science textbooks,” E&E News reported Thursday. The Republican-controlled board approved changes proposed by climate denier Patricia Hardy, who wants teachers to offer “both sides” of climate science. The edits aim to “portray the Earth’s warming temperatures as the result of natural fluctuations,” E&E wrote, “flying in the face of the consensus among climate researchers that humans are causing it by burning fossil fuels.” While the board guide isn’t legally binding, “it certainly deters school districts” from covering climate because they “try to play it safe” and “don’t want to weigh into politics generally,” according to Carisa Lopez of the Texas Freedom Network, adding that it “certainly politicises, deeply, climate change. It politicises science.” The Texas State Board of Education consists of five Democratic party members and 10 Republicans, including a Shell Oil lawyer Will Hickman and oil-field service company CEO Aaron Kinsey, who worked with Hardy on the changes. (Climate Nexus)
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