Newsletters > CP Daily: Tuesday April 11, 2023

CP Daily: Tuesday April 11, 2023

Published 01:35 on April 12, 2023  /  Last updated at 01:35 on April 12, 2023  / Carbon Pulse /  Newsletters

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

**Carbon Forward Asia is coming – May 2-3, Singapore**

A massive 32 stories in today’s edition of CP Daily… That’s a new record.  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

TOP STORY

Apple doubles commitment to $400 million for nature-based carbon removals

Tech giant Apple announced on Tuesday that it intends to double its commitment to nature-based carbon removal projects, eyeing the resulting credits for use towards its own Scope 3 carbon neutral 2030 goal.

VOLUNTARY

ETA partners appoint voluntary crediting standard, start to line up buyers for US-led global carbon trading programme

Partner organisations building the US government-led Energy Transition Accelerator (ETA) international carbon trading programme have selected a firm to develop and administer the voluntary crediting standard and are already lining up public- and private-sector buyers.

Gabon awards global wood supplier conditional 40-year afforestation lease for carbon, biodiversity credits

The Gabonese government has awarded a conditional multi-year land lease to a UK-based producer and global supplier of African timber for the generation of tens of millions of carbon and biodiversity offsets.

Tech firm introduces tailored marketplace to help scale value-chain emissions mitigation

A technology firm has announced a tool to help clients scale their climate ambitions within their own value chains, noting that the tailored marketplace has already resulted in noteworthy demand for carbon credits from a three-month test phase.

Global financier collaborates on two ranch carbon removal projects with US offset developer

A climate financier has teamed up with a US project developer on two international sustainable farming carbon removal projects, the companies said in a press release on Tuesday.

DAC technology firm secures $11 mln Series A funding to scale carbon removal project

A San Francisco-based technology start-up announced on Tuesday the first round of venture capital investment that will fund its direct air capture (DAC) commercial pilot project, along with a multi-year university endowment agreement.

VCM Report: Nature-based offsets dip below $2 in light holiday trade

Spot nature-based carbon credits sank below $2/tonne over the past week in thin trade disrupted by the Easter holiday period, while futures resumed their downward path after a brief quarter-end bounce.

International agency launches tender to buy batches of carbon offsets, other types of credits

A major international organisation in a decarbonisation push has launched a tender to purchase batches of various types of carbon offset and other environmental credits.

INTERNATIONAL

Analysts say power sector emissions peaked in 2022, as G7 struggles to quit coal

Even as analysts expect 2022 will represent the peak of emissions in the global power sector, G7 nations are still fighting over a timeline for the phase out of their coal power use.

ASIA PACIFIC

Thailand to introduce carbon tax for key sectors

Thailand plans to introduce a carbon tax covering three key sectors to help meet the Southeast Asian economy’s net zero goals, although details on when it will be implemented are yet to be determined, according to local media reports.

China seen to need over $230 bln in additional annual funding to reach carbon neutrality

China is facing a funding gap of over 1.6 trillion yuan ($232.7 billion) in funding per year to achieve its carbon neutrality targets by 2060 due to information asymmetry and inefficiency issues surrounding the operations of green projects, according to a top official at a government-backed association.

South Korea CO2 permit oversupply set to shrink amid non-compliance demand, mid-term outlook unclear -analysts

South Korea could see a declining oversupply in its carbon market as demand from non-compliance traders more than makes up for a drop in CO2 emissions, though the mid-term outlook for the ETS still hinges on the government’s 2030 roadmap for emissions reductions, analysts said Monday.

Australia Market Roundup: Cattle management project secures bumper ACCU issuance, as hydrogen company inks deal with major Japanese firms

Australian Carbon Credit Unit (ACCUs) issuance has climbed upwards, thanks to nearly 200,000 units being awarded to just one project, while an Australian hydrogen company has signed an agreement with two major Japanese firms to build a facility using its novel technology in the country.

South Korea announces plans to create CCUS value chain, secure 1 bln-tonne storage capacity

South Korea on Monday released further details of its national strategy to meet its 2050 carbon neutrality targets, with a special focus on the creation of a value chain surrounding carbon capture, utilisation, and storage (CCUS) technologies.

CN Markets: CEA price falls to 15-month low amid drained liquidity, weak demand

The spot price in China’s emissions trading market has plunged to its lowest level in 15 months with trading volume halving from the previous week, as cooling demand continues to weigh on the market in the absence of key regulations.

Japan to pilot digital J-Credit MRV, issuances

Japan has launched a blockchain-based pilot programme to digitally verify emissions reductions and issue carbon offsets under the government’s J-Credit scheme.

PNG NGOs urge govt to publicly release, consult on carbon trading regulations

A group of Papua New Guinea environmental NGOs have urged the government to publicly release key documents relating to its carbon market regulations, and to hold further consultations with stakeholders.

Fiji eyes national carbon registry launch ahead of consultation on national carbon market roadmap

The Fijian government is working to set up a national carbon registry as it seeks to hold a series of consultations this year on creating a roadmap for the establishment of the country’s carbon market, a recent webinar heard.

Rio Tinto snaps up senior carbon originator from major energy firm

Global miner Rio Tinto has tapped an Australian energy major to hire a senior carbon originator, as the company works to increase its engagement with the carbon offset market.

AMERICAS

Power producer files opposition to Washington state’s motion to dismiss cap-and-trade lawsuit

An independent power producer on Friday asked a court to deny the Washington Department of Ecology’s (ECY) attempt to dismiss its lawsuit reiterating discrimination claims under both the dormant Commerce-Clause and equal-protection laws, as the company said it spent millions in the state’s first cap-and-invest auction this winter.

California fuel consumption dips in 2022, pointing to lower WCI-covered CO2 output

California transportation fuel sales slowed last year after rebounding from the onset of the COVID-19 pandemic, according to data published Tuesday, suggesting depressed CO2 emissions under the state’s WCI-linked cap-and-trade system.

RGGI Market: RGAs inch down from 2-mth high as traders look to upside calls

RGGI Allowance (RGA) values slid from a nearly two-month high over the course of the week in line with broader macroeconomic conditions, while some traders pointed to expectations for a bullish outcome from the power sector cap-and-trade system’s programme review in driving more options activity.

RGGI states increase allowance volume for Q2 sale

Auction volumes offered at RGGI’s Q2 auction will increase slightly after dropping for the previous two quarters, the power sector cap-and-trade scheme’s notice showed Tuesday.

Maryland’s largest RGGI-regulated power plant files for deactivation

A Maryland-based power plant has filed to shutter slightly earlier than a previously announced deadline, as coal-fired generation continues to go offline within the RGGI carbon market-covered region.

Quebec publishes draft offset regulation for slurry biomethane projects

The Quebec environment ministry on Tuesday said it has proposed a draft regulation for manure biomethane offset projects under the province’s WCI-linked cap-and-trade system.

Alberta TIER credit price heads down towards national excess emissions charge

The Alberta Technology Innovation and Emissions Reduction (TIER) carbon credit price fell over the January to March period after trading well above Canada’s ‘backstop’ excess emissions charge, with one investor purchasing units amid the dip in value, according to a data analysis firm.

Speculators and emitters significantly lengthen CCA holdings, compliance shortens in RGGI

Financial players continued to widen their California Carbon Allowance (CCA) net long position this week to reach the highest level since early last year, while compliance entities slashed their net short position in the WCI market and net long in RGGI as the March contract expired, according to US Commodity Futures Trading Commission (CFTC) data published Friday.

EMEA

Euro Markets: Carbon edges higher in thin trade after sixth positive auction result fuels bullishness

European carbon prices rose for a third day in thin trading amid the holiday season, while the daily auction cleared at a sixth consecutive premium to the spot market as the end-April compliance deadline approached.

Organisations partner to boost investment in clean cooking, carbon finance in Africa

The African Guarantee Fund (AGF) and the Clean Cooking Alliance (CCA) on Tuesday announced a strategic partnership that they said will aims to promote financial innovation, increase access to carbon finance, and expand investments in clean cooking companies and programmes on the continent.

Finnish pension fund invests in record-breaking US climate ETF

Finnish pension fund Ilmarinen has made a significant investment in the Xtrackers MSCI USA Climate Action Equity ETF, the largest exchange-traded fund (ETF) launched in the US.

Switzerland’s emissions rise after pandemic despite hefty carbon taxes

Switzerland recorded a rise in greenhouse gas (GHG) emissions in 2021 of 1.3 million tonnes compared to 2020, the country’s government announced in a release on Tuesday, meaning the country failed to hit its target of reducing emissions by 1.5% a year compared to 1990 levels.

BIODIVERSITY (FREE TO READ)

Cosmetics giant outlines huge biodiversity supply-chain challenges

Water risk in North American pulp forests, soil organic carbon in Australia, untreated wastewater in China, and air pollution and carbon emissions in Russia are just some of the nature risks facing a major chemicals and cosmetics corporation that released a first-of-its-kind report on its biodiversity challenges Monday.

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CONFERENCES

City Week 2023 – April 24-26, London: City Week event brings together more than 1,000 top-level senior decision-makers from UK and overseas financial institutions for a comprehensive programme of cutting-edge presentations, panel discussions, and networking. This year’s forum will feature many well-known names from the global financial services industry, the world of politics and the international regulatory community. Day 1 has been set at the Climate Change, Green Finance and Sustainability Summit. The 13th annual edition of City Week will be held in-person at Guildhall, London, and also streamed live on our media channels. As in previous years, CW2023 is being organised in partnership with the UK Government, the City of London Corporation, TheCityUK, UK Finance and leading City institutions. Carbon Pulse readers can enjoy a 20% discount on tickets. Register here and use code CITY14CP.

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. The confirmed attendee list is approaching 200 people. Purchase your tickets now, before they sell out!

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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

Meeting of the rainforests – Brazilian President Luiz Inacio Lula da Silva will hold the first meeting with the Democratic Republic of the Congo and Indonesia to initiate the alliance of highly rainforested countries in June, the president told the government radio programme A Voz do Brasil on Monday. The trio was first announced during COP27 in Sharm el-Sheik, Egypt, which then-president-elect Lula personally attended. Lula wants to include other countries which share the Amazon rainforest in the alliance. (Agencia Brasil)

EMEA

Harbour lights – Britain’s largest oil and gas producer, Harbour Energy, said on Tuesday it has entered into an agreement with BP to develop the Viking CCS transportation and storage project. Harbour will continue as operator of Viking CCS with a 60% interest, with BP acquiring a 40% non-operated share. The announcement follows the UK’s recent decision to launch the “Track 2” cluster sequencing process for CCS to follow the initial two projects it will support under “Track 1”. Harbour said the government recognises Viking CCS as one of the leading transport and storage system contenders for this process, and that a final investment decision on the project is expected in 2024, subject to the outcome of the Track 2 CCS. (Reuters)

ASIA PACIFIC

Helping hand – The UNDP is ready to help Kazakhstan develop the appropriate institutional arrangements, protocols, and regulatory framework needed for the Central Asian nation to access international carbon markets, the UN agency said in a statement after meeting with the minister of ecology and natural resources, Zulfiya Suleimenova, on low-carbon development paths on Monday. That might include a JCM partnership with Japan, which was discussed with Japanese officials during a recent UNDP-funded study tour to Tokyo. UNDP has also provided support to help Kazakhstan prepare for COP28, and the parties discussed a broad range of issues related to climate and environment. (KazInform)

France-China deals – France and China have signed several cooperation deals in the field of energy, notably nuclear and wind power, during a state visit of French President Emmanuel Macron to China, according to Reuters. Macron was travelling with a delegation including top executives from plane manufacturer Airbus and state utility EDF, which had signed a deal with Chinese utility CGN to renew their long-standing partnership on nuclear energy. Deals were also signed between EDF and China Energy Investment Corporation for offshore wind, the report said.

Coal-to-hydrogen doubts – A multibillion-dollar Japanese plan to extract hydrogen from Victoria’s brown coal is at risk of failing due to demands for extra subsidies and a lack of willingness from Japanese customers to sign up for long-term deals, The Guardian reports. People familiar with the Hydrogen Energy Supply Chain (HESC) project said only a portion of the A$2.48 bln funding would actually be spent on developing a liquefaction plant in the Latrobe valley and export facilities at the nearby Hastings port. The issue of responsibility for capturing and containing the project’s carbon emissions is also unresolved, with the state government potentially liable. The money now put on the table by the commercial proponents explicitly won’t go to capturing the project’s carbon or storing it, according to Lily D’Ambrosio, Victoria’s climate action and energy minister, with 100% of that risk being the responsibility of that state. The decade-long project has claimed several technological breakthroughs, including last year’s first shipment of liquefied hydrogen to Japan. Proponents have argued that using fossil fuels to create hydrogen and sequestering the emissions – so-called blue hydrogen – could lower the price and boost demand, paving the way for a later switch to renewables to create green hydrogen versions of the nascent fuel. Opponents, though, say the cost of capturing and storing the resulting carbon emissions will likely render fossil fuel-sourced hydrogen uncompetitive.

Renewables 24/7 — Australian solar project developer Sun Cable has inked a tentative deal to supply renewable energy to a critical minerals processing facility proposed for development near Darwin, RenewEconomy reports. The non-binding deal with ASX-listed resources company Tivan comes in the midst of a sales process for Sun Cable initiated by administrators after the renewable developer’s billionaire backers Andrew Forrest and Mike Cannon-Brookes fell out over the business strategy. However multiple suitors are still interested in the project and its flagship project, the massive Australia-Asia PowerLink, which proposes 20 GW of solar, up to 42 GWh battery storage, an 800 km transmission line to Darwin, and a 4,200 km sub-sea cable to export power to Singapore. Tivan’s plans are to use the Middle Arm Darwin facility to process magnetite concentrate, powered by 200-300 MW secured by offtake agreement from Sun Cable’s AA PowerLink project. Sun Cable CEO David Griffin said the provision of 24/7 dispatchable, renewable electricity could underpin industrial processes, enabling a new wave of green industrial development.

CCUS alliance in China – Suzhou Shijing Environmental Technology, a Shenzhen-listed environmental solution provider, has signed a strategic cooperation agreement with a few Chinese companies to jointly develop a carbon capture, utilisation and storage (CCUS) project in Henan Province’s Jiyuan City, according to a filing published on the Shenzhen bourse. The newly-built alliance include Jiyuan Innovation Technology Group, Henan Jiyuan Iron&Steel, China Huaneng’s Qinbei power plant and a Jiyuan-based subsidiary of China United Cement. The companies did not disclose further details about the size of the CCUS project, but said the agreement will be valid for five years.

AMERICAS

Leader of the pack – The US government is planning what the New York Times calls some of the most stringent limits on car emissions in the world, in a move it says is designed to ensure that all-electric cars make up as much as 67% of new passenger vehicles sold in the country by 2032. According to anonymous sources, the proposal would be intended to ensure that electric cars represent 54-60% of all new cars sold in the US by 2030, with that figure rising to 64-67% of new car sales by 2032. Michael Regan, the administrator of the EPA, is expected to announce the proposed limits on Wednesday, the NYT reports, noting that they would represent “a quantum leap for the US – where just 5.8% of vehicles sold last year were all-electric – and would exceed President Biden’s earlier ambitions to have all-electric cars account for half of those sold in the country by 2030”. The regulation, which would go through a public consultation period and could be altered by the government before becoming final, is sure to be met with legal challenges. It could also become an issue in the 2024 presidential campaign, as a future administration could undo or weaken it. (Carbon Brief)

Redefining renewable – A clause in New York state Senator Kevin Parker’s (D) bill that is part of ongoing budget negotiations, attempts to change the definition of renewable energy in the state’s 2019 Climate Act to include electricity produced from burning waste originating from cow manure through anaerobic digestion, and wood or forest biomass, City Limits reported Monday. The new definition would apply as of Dec. 31, 2022, which according to environmental groups would help prevent the shutdown of ReEnergy Holding’s Black River 60 MW power plant, the state’s last biomass plant. The plant supplies electricity to the US army’s Fort Drum base, relying on a 20-year contract with the New York State Energy Research and Development Authority (NYSERDA) that expires in May. The plant officially stopped running on Mar. 31 and is now engaged in a series of lay-off activities, according to ReEnergy, the report noted. The bill would extend Black River’s contract with NYSERDA until Nov. 30, 2034 and allow the plant to keep generating renewable energy certificates (RECs). NY lawmakers are continuing to negotiate the state spending plan, which is now more than a week late. Black River has not complied with its allowance requirements under the RGGI cap-and-trade scheme for six straight years, though it has an agreement in place with the state government to absolve it of compliance obligations through year-end.

Hydrogen hub – A group of seven US Northeast states – Connecticut, Maine, Massachusetts, New Jersey, New York, Rhode Island, and Vermont – submitted a joint bid for a $1.25 bln share of the $8 bln in federal funding from the Infrastructure Investment and Jobs Act set aside for the development of a clean hydrogen hub, a trade publication reported Tuesday. Clean hydrogen projects developed by the group would include hydrogen production for use in transportation, high-temp industrial thermal applications, and heating for utilities. The projects would also be designed to form strategic connections with other clean hydrogen hubs. If selected by the US Department of Energy (DOE), the group would develop 12 projects in four phases over the course of 10 to 12 years across the seven states. Each phase would have a set of milestones to complete regarding technical data and analysis, community engagement, engineering, permitting and safety, business development, procurement, and construction, before advancing to the next phase of development, the report outlined. Oversight of the Northeast group’s projects would be done through coordination and collaboration between the DOE, New York State Energy Research and Development Authority (NSERDA), along with partners in other states and project partners in communities across the region. (American Public Power Association)

Low Carbon Flying Standard – The British Columbia Ministry of Energy, Mines, and Low Carbon Innovation has released a paper discussing its intention to regulate aviation fuels under the province’s Low Carbon Fuel Standard (LCFS) from 2024. The paper presents the types of aviation fuels subject to the LCFS, and it also details renewable requirements and carbon intensity targets, fuel characteristics, penalty rates, and exemption criteria. Public feedback is accepted until May 15.

VOLUNTARY

Water world – Watershed, a startup that helps companies analyse and cut their GHGs, on Tuesday announced it is acquiring emissions accounting and data firm VitalMetrics. Watershed backers include prominent venture firms Sequoia and Kleiner Perkins, and it counts Walmart, Airbnb, BlackRock, and other heavyweights among its customers. The company, founded in 2019, has raised a total of $84 mln and claimed a $1 bln valuation in early 2022, when it announced a $70 mln Series B round. (Axios)

AND FINALLY…

Do you want to know the terrifying truth… or do you want to see more dingers? – The explosion of home runs in Major League Baseball can be traced, in small part, to climate change, according to a study published Friday. In a peer-reviewed paper published in the Bulletin of the American Meteorological Society, Dartmouth College researchers said they can connect at least 500 additional home runs from 2010 to 2019 to Earth’s human-made warming. The research was based on their simple premise that “air density is inversely proportional to temperature,” according to the paper, and that with all “else being equal, warmer air is less dense and a batted ball will carry farther.” If current climate trends continue, researchers said, there will be 192 additional long balls per year by 2050 and 467 more per season by 2100, researchers said. (NBC News)

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