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TOP STORY
Made-in-UK new carbon standard to launch as British corporates shy away from current offerings
A UK-based carbon standard is due to launch next week having built up a portfolio of pilot activity in regenerative agriculture, as corporate interest in existing options for British land-based carbon credits is seen waning.
EMEA
INTERVIEW: EU search for critical raw materials should begin at home, expert argues
The EU should look closer to home when it comes to diversifying its supply of critical raw materials (CRMs) needed for the energy transition by developing sustainable mining within its borders, according to a leading expert, as rising export restrictions are seen hindering global climate ambition.
Euro Markets: EUAs post first weekly loss in four as activity eases ahead of compliance deadline
European carbon prices fell for a third session on Friday and recorded a weekly loss of 2.9% with early gains erased in very light trading as the compliance season neared its end, while energy markets were once again weaker as the market absorbed the impact of comfortable gas supplies.
EU nations advance 2023 EUA issuance to 76% of total, with five yet to start handouts
EU member states handed out a total of 75 million more free EUAs to industrial plants over the last four weeks, bringing the total issuance to around 76% of this year’s maximum, though five countries are yet to begin issuing permits to installations.
Scottish government inviting suppliers to bid on £66-million peatland restoration contract
The Scottish government is inviting prospective suppliers to bid on a £66-million peatland restoration contract.
UPDATE – EU ETS2 allowance prices could exceed intended €45/tonne “ceiling”, experts warn
(Updates with comments from lawmakers Bloss, Chahim)
Allowances in the new EU carbon market for transport and building heating emissions could exceed the intended price ceiling, experts have warned, arguing that European lawmakers may have created false expectations.
AMERICAS
Indigenous rights group files formal complaint over huge Guyana REDD+ issuance
An activist group for Indigenous peoples has lodged a grievance with a jurisdictional REDD+ standards body over claims that the Guyanese government did not receive consent from communities to distribute tens of millions of avoided deforestation carbon offsets.
Higher 2021 GHG output shifts Canada further from 2030 Paris pledge
Canada’s GHG output increased in 2021 with the return of activity following COVID-19 shutdowns through the previous year, driving the country further away from 2030 Paris abatement pledges, according to government data published Friday.
US Carbon Markets and LCFS Roundup for week ending Apr. 14, 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 meeting of the Pennsylvania governor’s RGGI working group, a Michigan plan for a low-carbon fuel standard (LCFS) and clean energy standard, an Oregon commission’s GHG reduction recommendations and legislative proposal to study a lower diesel carbon intensity benchmark, and the advancement of offset-related legislation in California.
Compliance entities pare back CCA net length, speculators hold steady across markets
Regulated entities trimmed their net length in California Carbon Allowances (CCAs) while building slightly in RGGI, as speculators did not significantly alter their positions across the two North American cap-and-trade systems, according to US Commodity Futures Trading Commission (CFTC) data published Friday.
ICE reschedules launch date for Washington carbon allowance futures
Exchange operator ICE Futures US announced on Friday the delayed launch date for three Washington Carbon Allowance (WCA) futures contracts, four months into commencement of the newest carbon market in North America.
ASIA PACIFIC
CN Markets: CEA price claws back lost ground amid little action, CCER liquidity improves
The price for Chinese carbon allowances bounced back over the past week after the previous week’s dip, though only on the back of a handful of largely symbolic transactions, while the offset market saw improving liquidity aided by heated discussions around the relaunch of the national programme.
Australia’s Clean Energy Regulator publishes carbon estimation areas, but with major caveat
Australia’s Clean Energy Regulator has published ERF carbon projects’ carbon estimation areas (CEAs) as now required by law as part of amendments made to the Safeguard Mechanism legislation, however crucial data that could help determine the effectiveness of the projects have been left out for the time being.
Queensland govt launches third round of carbon farming Land Restoration Fund
The Queensland government has opened the third round of its Land Restoration Fund (LRF), with A$50 million available to go towards carbon farming project across the state.
VOLUNTARY
Nordic tech firms help top up contribution claims fund
Nordic tech firms including music streaming service Spotify and e-payment company Klarna are set to contribute a further $5 million in 2023 to a fund set up as an alternative to carbon offsetting.
UCLA researchers pioneer ocean-based carbon capture system
UCLA’s Institute for Carbon Management has developed what it’s called a first-of-its-kind ocean-based carbon capture system that removes CO2 from seawater, a process than can then lead to more of the gas being absorbed from the atmosphere.
INTERNATIONAL
IEA urges governments to focus on emissions intensity to better align hydrogen frameworks
Governments need to work together towards providing greater transparency in defining the emissions intensity of hydrogen to facilitate the market and regulatory signals required at a global level to boost investment in the sector, the International Energy Agency (IEA) has urged in a report.
BIODIVERSITY (FREE TO READ)
Businesses should minimise their biodiversity impacts, while looking to help make progress elsewhere -experts
Businesses seeking to minimise their impacts on biodiversity can simultaneously look to enhance ecosystems that function beyond their value chains, a webinar heard Thursday, pointing out an emerging agreement on what a “nature positive” business strategy really means.
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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
The times they are a changin’ – Inertia is a powerful force in energy systems — and a key challenge for efforts to transition economies to clean energy and tackle climate change, writes the IEA’s chief executive, Fatih Birol, in the FT. Why install a heat pump when your gas boiler works fine or buy an electric car when your petrol one does the job? Why build new power lines to connect solar plants to the grid when fossil fuel plants are already plugged in and running? But the ongoing energy security crisis has demonstrated how shocks can shake systems out of inertia. Russia’s efforts to gain political and economic advantage by pushing energy prices higher have spurred a major response by governments — not just in the EU but in many countries around the world — to speed up the deployment of cleaner and more secure alternatives. The effects of all this are becoming clearer by the day. Six months ago, the IEA showed that the repercussions of the war in Ukraine were reshaping the future of global energy, with a peak in fossil fuel demand clearly visible for the first time and set to happen before the end of the 2020s. This will be a historic shift: fossil fuels have held their share of global energy supply steady at about 80% for decades. But the energy world is changing fast — and clean technologies are building momentum. The IEA’s latest data indicates that the peak in fossil fuel demand is moving even closer, according to Birol.
Brazil backing – China and Brazil announced Friday a new collaborative effort to eliminate deforestation and control illegal trade causing forest loss. During a visit to Beijing, Brazilian President Lula da Silva and his Chinese counterpart Xi Jinping agreed to establish a Subcommittee on Environment and Climate Change and support Brazil’s bid for the COP30 UN climate summit in 2025. Back in January, da Silva expressed his desire to host the UN climate talks in Belem, the second-biggest city in the Amazon region. (Climate Home)
EMEA
Dutch drop – The Netherlands saw a 7.6% decrease in CO2 emissions under the EU ETS in 2022 compared to 2021, with the industry experiencing the largest drop in emissions in 15 years at 8.3%. According to the Dutch Emissions Authority (NEa), CO2 emissions in 2022 were 68.5 Mt, significantly lower than the 74.1 Mt in 2021 and almost 20% lower than in 2019. The 330 ETS-regulated companies in the country account for about half of the Netherlands’ total CO2 emissions. NEa CEO Mark Bressers suggested the decrease might be due to lower production rather than sustainability efforts. The chemical industry, including companies like DOW Chemical, Chemelot, and Yara, experienced the largest emission reductions in 2022. However, CO2 emissions from the four coal-fired power stations remained nearly the same as in 2021, accounting for 8% of the Netherlands’ total emissions.
Hungarian help – A €1 bln scheme will support companies facing rising energy costs in Hungary, the EU Commission announced on Friday. The measure will intervene amid Russia’s war against Ukraine and it will take the form of loans and guarantees, intended to cover the additional costs due to exceptional increases in energy prices. It is open to companies of any size and from any sector, with the exception of the financial sector and sectors considered potentially harmful to the environment. The executive vice-president, Margrethe Vestager, said this “will allow Hungary to mitigate the impact of rising costs of electricity and natural gas on its economy, while ensuring that distortions of competition are kept to a minimum”.
Danes done – Denmark is working towards exiting the Energy Charter Treaty, its energy ministry said on Thursday, casting further doubt over an international agreement that critics say has become an obstacle to tackling climate change. The 1998 treaty protects investments in both green energy and fossil fuels, allowing companies to sue governments over policies affecting their investments. The 27-country EU – whose members make up roughly half of the treaty’s signatories – is considering a joint EU exit, after France, Germany, the Netherlands, Poland and Spain already announced plans to quit. (Reuters)
ASIA PACIFIC
Busted — A public servant from Papua New Guinea’s Climate Change Development Authority has been arrested and charged for allegedly misappropriating more than K500,000 ($140,000), according to the Post Courier. Police allege that the official cashed out the money in 68 cheques over a period of time. It follows the offices of the CCDA being raided by the anti fraud squad in February. Police investigations showed the funds were used on hotels, rental apartments, and personal allowances. Police findings show that no prudent business practice was maintained for records, clear invoices were not submitted, no records were kept, there were no approvals and endorsements on the transactions. Police said investigations were ongoing.
Waste to hydrogen – Idemitsu, one of Japan’s leading producers and suppliers of energy, has launched a feasibility study of clean hydrogen production in Japan generated from waste, including municipal waste, the company said in a press release The goal is to launch a first hydrogen production facility by around 2030 capable of processing 200-300 tonnes of waste per day. The study is conducted in collaboration with California-based H-Cycle, which has developed a thermal conversion process using heat and electricity to transform waste into hydrogen with minimal emissions. HC is an investee of the Azimuth V Energy Evolution Fund, an investment fund launched by Azimuth Capital Management specializing in technology-enabled energy transition opportunities. Idemitsu had committed to invest in the fund in Nov. 2021.
New business – Electric carmaker Tesla Inc has set up a new-energy company in Shanghai with registered capital of $2 mln as preparations for the firm’s rapid expansion in the Chinese market, Global Times reports. The new unit will focus on a wide range of business areas, including solar power generation and energy storage technologies, according to Chinese corporate information platform Tianyancha. The move came after Tesla last week announced plans to build a new factory in Shanghai, which will be able to produce 10,000 of its “Megapack” energy storage units a year.
Coal capacity – India’s largest electricity producer, state-run NTPC, plans to start building more coal plants this year as the country continues to lean on the fuel to meet its growing energy needs. The company will likely award construction orders for about 4.5 GW of coal-fired capacity during the fiscal year that began this month, according to an official aware of the plans, who asked not be named before a final decision is made, Bloomberg reported. The projects will be built across three sites where the utility already runs power plants. The projects underscore how even as India sets ambitious long-term decarbonisation targets, in the near term it will continue to rely on the dirtiest fossil fuel to meet rapidly growing power demand. A warming planet and increased penetration of air conditioners are causing power consumption to climb to new records in the country.
AMERICAS
Bombs over Biden – President Joe Biden’s administration on Thursday approved exports of liquefied natural gas (LNG) from the Alaska project, a document showed, prompting criticism from environmental groups over the approval of another “carbon bomb”. The US energy department approved Alaska Gasline Development Corp’s (AGDC) project to export LNG to countries with which the US does not have a free trade agreement, mainly in Asia. Backers of the roughly $39 bln project expect it to be operational by 2030 if it receives the required permits. The project, for which exports were first approved by the prior administration, has been strongly opposed by environmental groups. (Guardian)
Mt. Simon says – Chart Industries on Thursday announced an expansion of its existing MOU with Wolf Carbon Solutions. Through a cooperation agreement, both companies will jointly identify, develop, and pursue projects using charts’ carbon capture technology at host sites along Wolf’s recently announced Mt. Simon Hub that will run from Iowa to central Illinois. In a press release, the companies said this would be the first CO2 pipeline with CCUS capabilities in this highly industrial region of the US, and would support decarbonisation in refineries, cement, steel, lime, power, and many other industries.
VOLUNTARY
United SAF investment – US airline United on Friday announced a $15 mln investment in carbon capture technology company Svante, who provides materials and technology as part of the value chain that has the potential to convert CO2 removed from the atmosphere and industrial sources and turned into sustainable aviation fuel (SAF). In a press release, Chicago-headquartered United said this was the latest announced investment from the new UAV Sustainable Flight FundSM, a first-of-its-kind investment vehicle that is designed to leverage support from cross-industry businesses in order to support start-ups focused on decarbonising air travel through SAF research, technology, and production.
SCIENCE & TECH
Dire droughts – Climate change is making droughts hit harder and faster, giving farmers even less time to prepare, a study published Thursday in Science found. In addition to the impacts on regular droughts, so-called “flash droughts” that occur in the growing season cause outsized damage because they come on so quickly as the air gets extremely hot and dry, pulling water right out of plants and soil. A flash drought struck China’s Yangtze River basin last summer, coinciding with extreme heat and wildfires. Another, one of the worst droughts since the 1930s Dust Bowl, hit the central US in 2012, causing $30 bln of damage. Both flash droughts developed in less than a month. (Climate Nexus)
AND FINALLY…
A cut above the rest – The relationship with one’s hairdresser can be an intimate one, putting stylists in a unique position to empower their clients to take action on climate change. That’s the raison d’etre of A Brush With Climate, an Australian organisation founded by a Sydney hair salon owner that connects stylists with climate scientists for workshops on how to talk about the issue. During the workshops, participants learn the basics of climate science and engage in role-playing scenarios to prepare them for conversations that may arise. “We’re relationship builders,” Paloma Rose Garcia, the group’s founder, told The Guardian. “We suggest some easy ways to introduce climate to the conversation and the biggest one is definitely the weather. But we encourage all the hairdressers to make it their own story.” (Climate Nexus)
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