**Carbon Forward Asia is coming – May 2-3, Singapore**
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TOP STORY
EU ETS-linked reforms get final green light from European Parliament
European lawmakers on Tuesday gave their approval to a series of provisional deals aiming to put shipping, buildings and road transport under carbon pricing, impose a carbon border adjustment mechanism (CBAM), and launch a Social Climate Fund.
EMEA
Euro Markets: EUAs snap four-day losing streak amid technical trading as Parliament approves Fit for 55
European carbon prices posted robust gains on Tuesday amid largely technically-driven trading, while lawmakers in the European Parliament approved a raft of changes to the market under the Fit for 55 programme.
Think-tank calls for shift in EU ETS free allocations ahead of phaseout
Free carbon allowance handouts in the EU should be based on the products rather than the process of making them as is currently the case, a think-tank has recommended, as Brussels prepares to make amendments to rules governing its free allocation of EUAs.
VOLUNTARY
Investor-led initiative seeks to establish net zero standard for oil and gas sector
An initiative led by European investors released on Tuesday a net zero standard for the big-emitting oil and gas sector, looking to navigate the murky waters of net zero pledges and drive climate change progress through capital allocation.
Record number of companies sign up to net zero 2050 targets to bolster VCM market
A record number of companies adopted net zero targets in the first quarter of this year while and retirement levels of offsets held steady to dispel concerns of a long term crisis in the voluntary carbon market, a webinar heard Tuesday.
E-commerce firm says CDR technologies suffering from lack of funding, corporate buyers
A commerce platform heavily involved in engineered carbon dioxide removal (CDR) agreements said few new corporate buyers have emerged to provide the necessary financing to help scale up nascent technologies, according to a recent report.
Portugal, Repsol partner on voluntary carbon reforestation project
Portugal’s economy and environment ministers have announced that Repsol’s ‘Green Engine’ reforestation project will contribute to the establishment of a voluntary carbon market in the country.
Researchers develop process to extract critical metals while removing CO2 from atmosphere
Researchers have developed an innovative method to remove CO2 from the atmosphere while mining critical metals for renewable energy infrastructure.
Mott MacDonald, Brilliant Planet partner on algae-based CDR facility in Morocco
Algae specialists firm Brilliant Planet has announced a partnership with consultancy Mott MacDonald to develop a carbon dioxide removal facility in Morocco.
Renewable power, sustainable racing fuel to drive new NASCAR 2035 net zero goal
US stock car racing circuit NASCAR has announced plans to achieve net zero operating emissions by 2035 as part of a broader impact-driven platform.
AMERICAS
California lawmaker amends bill to ensure possible cap-and-trade reforms take effect in 2025
A California legislator made wholesale changes to a bill on Monday that will require state regulator ARB to evaluate the effectiveness of the WCI-linked carbon market mechanism and set a Jan. 1, 2025 deadline for implementing any resulting alterations, aborting the bill’s prior focus on strengthening the state’s 2030 abatement target.
ASIA PACIFIC
AU Market: Market on mute ahead of Safeguard start-up as ACCU deliveries to govt pick up
Trading activity in the Australian market has slowed down while companies with new compliance obligations under the strengthened Safeguard Mechanism are being given a crash course in the reformed Australian Carbon Credit Units (ACCU) market ahead of the July start date, a broker told Carbon Pulse.
China thermal power growth speeds up in March, Q1 GDP beats expecations
Growth in China’s thermal power generation accelerated in March, outpacing the growth of total power output amid continued coal expansion and better-than-expected economic sentiment, government data showed Tuesday.
SHIPPING
Shipping sector not yet ready to commit to one alternative fuel, say experts
No single alternative fuel is emerging as the frontrunner for the shipping sector’s decarbonisation, a number of key figures of the Belgian shipping industry agreed at an event dedicated to decarbonising the industry on Tuesday.
BIODIVERSITY (FREE TO READ)
UNEP report urges finance sector to invest in biodiversity credits
Biodiversity credits are one of the key vehicles for financial institutions to channel capital into nature protection and restoration, according to a UNEP report published this month that noted how investors represent a vital source of funding to meet the goals of the Global Biodiversity Framework (GBF).
Nature’s decline poses a risk to more than half of global GDP -PwC
More than half of global GDP depends on nature and is therefore exposed to risk posed by the degrading state of nature and ecosystems, one of the largest financial auditors worldwide, PwC, published in its latest research on Wednesday.
New partnership readies autonomous drone to scale up eDNA marine sampling
A new technology resembling a waterborne drone aims to independently collect environmental DNA (eDNA) from the world’s oceans, providing scientists and other stakeholders with the data they need to track and manage local biodiversity at scale.
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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
In the club – Indonesia is set to join a new climate club established by the G7, according to German Chancellor Olaf Scholz, who pushed to create the group last year in a bid to coordinate global rules on climate matters and avoid trade disputes over green tariffs, Bloomberg reports. Indonesia is set to receive several billion euros in the coming years from rich nations and private investors to accelerate its shift away from fossil fuels, Scholz said in a speech Sunday that opened the Hannover Messe trade fair with Indonesian President Joko Widodo in attendance. Scholz called on European leaders to accelerate trade talks with countries including Indonesia, India, and Mexico and suggested that Europe offer countries with raw materials such as rare earths and copper better deals that would allow them to capture more value from the processing of the materials. Read Carbon Pulse’s report on the G7-led climate club.
Transition tools – The International Initiative for Development of Article 6 Methodology Tools (II-AMT) expert group has developed three main tools to adapt UN CDM carbon credit methodologies for under the mechanisms being built under the Paris Agreement’s Article 6.4 provision and will this month identify suitable pilot activities under existing Article 6.2 bilateral programmes to test them. That’s according to Axel Michaelowa of consultancy Perspectives in the latest issue of the Wuppertal Institute’s quarterly Carbon Mechanisms Review. II-AMT aims to submit the tools to the Article 6.4 supervisory body for approval and use under the mechanism, which the UN is working to get up-and-running by year-end. CDM activities will be able to apply to transition into Article 6.4 until 2025.
Dynamic duo – A joint statement from the Brazilian and Singaporean governments on Monday outlined possible bilateral cooperation on carbon markets, including under Article 6 of the Paris agreement. The two governments said they would work towards establishing a bilateral cooperation framework under Article 6 by or around the COP28 UN climate summit this fall, with an eye towards reaching an implementation agreement thereafter. Promoting development and investment in biofuels was also a feature of the statement. Singapore also said it would support Brazil’s bid to host COP30 in 2025.
The cost of war – A major survey of 3,000 business leaders and policy makers across UK, Europe, and US suggests the ongoing conflict in Ukraine as a double-edged sword for net zero and could delay its progress by as much as three years, despite also being an accelerator for new clean technologies. (BusinessGreen)
AMERICAS
Impending battles – Environment groups The Sierra Club and Earthjustice are considering suing the Securities and Exchange Commission (SEC) if the agency softens its stance on requiring companies to disclose Scope 3 emissions from their supply chains and other indirect sources under upcoming corporate climate disclosure rules due at the end of the month, Bloomberg Law reported Tuesday. The SEC potentially also faces litigation from 24 Republican state attorney generals, business interests, and trade groups such as the US Chamber of Commerce and the American Petroleum Institute that have petitioned the regulator to drop Scope 3 disclosures and broader elements of their Mar. 2022 proposals, the report stated. Any litigation would likely be months away as SEC Chair Gary Gensler told lawmakers last month that regulations typically took 12 to 15 months to finalise after being proposed.
Banning the ban – A US ninth circuit federal appeals court overturned a district judge’s decision two years ago that had upheld Berkeley, California’s ban on natural gas connections in new construction, the Associated Press reported Monday. The first natural gas ban in the country had taken effect in 2020, banning, with some exceptions, new residential and commercial buildings from installing natural gas supply lines in favour of electricity connections. Trade group the California Restaurant Association (CRA) had filed a lawsuit claiming that the city’s rules violated federal law that gave the federal government the authority to set energy efficiency standards for appliances such as stoves, furnaces, and water heaters and not city officials. Judge Patrick Bumatay said that Berkeley’s local regulation impacted the quantity of energy gas stoves consumed, which was under federal jurisdiction. Environmental groups expect the ruling to be appealed.
Court adjourned – Seven youth who sued the Ontario government, claiming the province’s climate change plan was so “woefully inadequate” that it breached their charter rights, have lost their case. In a decision issued last week, Justice Marie-Andree Vermette was sympathetic to the claims of the young people, but ultimately ruled that Ontario’s emission reduction targets are not unconstitutional. “I agree with the Applicants that the evidence in this case shows that young people are disproportionately impacted by climate change. However, this disproportionate impact is caused by climate change, not by the (Ontario government’s climate laws),” ruled Vermette. The decision did, however, rebuke the Ontario government — and reject evidence provided by its “expert” witness — for claiming emissions reductions in the province will have no effect on climate change. “I reject the notion that because climate change is ‘an inherently global problem,’ each individual province’s GHG emissions cause no ‘measurable harm,’” ruled Vermette. “While Ontario’s contribution to global warming may be numerically small, it is real, measurable and not speculative.” The case focused on the climate legislation passed by the government of Premier Doug Ford, shortly after he was elected in 2018. The Cap and Trade Cancellation Act repealed more stringent emission reduction targets, passed by former premier Kathleen Wynne’s government, and replaced them with targets that would allow an additional 200 Mt of CO2e to be emitted by 2030, the lawsuit alleged. (Toronto Star)
At this time of the year, in this part of the country – Aspiring Canadian carbon credit developer Boreal Carbon Corporation on Tuesday announced closed on its first acquisition, an institutional-quality timberland asset located in Northern Ontario in excess of 8,000 ha. In a press release, the Toronto-based firm said the company is building a portfolio of timberland assets in North America that generate high-quality carbon credits through sustainable forest management practices. Carbon Pulse inquiries regarding the offset methodology or protocol used, standards body to register the project, target date for the generation of credits, annual issuance potential, or whether the credits would be destined for a compliance carbon market or the voluntary market were not returned as of press time.
It’s raining trees – Canada and the province of BC signed a two-year agreement under the 2 Billion Trees (2BT) programme to plant over 37 mln trees in the province through nearly $80 mln in joint funding, according to a press release Tuesday. The project will focus on reforestation of wildfire affected areas, reducing 2.1 MtCO2e, restoring wildlife habitats, and reducing the hydrological impacts of disturbed areas. BC has planted 1.6 bln trees since 2017 outside of the 2BT programme. Today’s agreement with BC is one of six multi-year agreements between the federal and provincial governments under the 2BT programme.
Carbon neutral catamounts – The University of Vermont (UVM) has committed to achieving carbon neutrality on campus by 2030 thanks to a new Comprehensive Sustainability Plan, according to an announcement made on Tuesday. UVM leadership said the university plans to reduce GHG emissions to 60% below 2007 levels by 2024 and will work to offset indirect emissions by purchasing local forest carbon offsets through the Vermont Land Trust. (NBC5 News)
EMEA
More a twig than a stick – A decision to reduce sanctioning powers in Germany’s domestic climate law to cut GHG emissions by 65% by 2030 compared to 1990-levels will make it even harder for the nation to meet its emissions goals at the end of the decade, according to a committee of advisers. The row back was agreed by the coalition government at the end of March. Germany is already behind where it needs to be. Last year, the nation cut its emissions by 1.9% to 746 mln tonnes, a reduction path that experts say is too slow. Without a major turnaround, Germany will only reach a 55% reduction by 2030, said Marc Oliver Bettzuege, member of the Council of Experts on Climate Change. (Bloomberg)
Peer pressure – The UK government has suffered a defeat at Westminster as peers narrowly backed a ban on the opening of new coal mines. The House of Lords supported the Liberal Democrat-led move by 197 votes to 194 – a majority of three. The enforced change to the Energy Bill comes after Levelling Up Secretary Michael Gove approved in December what is set to be the first new coal mine in the UK in 30 years, leading to accusations of “environmental vandalism”. The facility on the edge of Whitehaven in Cumbria is expected to extract nearly 2.8 million tonnes of coal per year for use in steel making, rather than power generation, and supporters of the scheme have said it will create 500 jobs. But critics warn it will create more emissions as the government seeks to meet its net zero target and argue it is hypocritical in the wake of UK efforts on the international stage to show climate leadership and urge the world to give up on coal. (Evening Standard)
Rebel alliance – Extinction Rebellion (XR) and nearly 200 environmental and social justice groups, including Greenpeace and War on Want, have given the UK government a seven-day deadline to enter negotiations for two new demands: an immediate halt to the search for new fossil fuels and a transition towards reparatory justice. The groups are calling for emergency citizens’ assemblies to decide on ending the fossil fuel era quickly and fairly. If the government fails to agree on a plan by Apr. 24, XR and its allies will intensify campaigns and actions across the country. The demands form the centerpiece of The Big One, a four-day protest near Parliament from Apr. 21-24, which unites various NGOs, trade unions, ethical companies, and campaign groups. The collaboration aims to address the government’s mishandling of the climate crisis and other social issues. If the government does not respond by the deadline, XR said it plans to design “the greatest acts of civil disobedience in this country’s history” within three months. This latest call for action comes four months after XR announced “we quit”, vowing a temporary shift away from public disruption as a primary tactic and placing more focus on disrupting “the abuse of power and imbalance, to bring about a transition to a fair society that works together to end the fossil fuel era”. In that time, the UK government has supported new oil and gas drilling projects in the North Sea and has announced that its net zero strategy depends on carbon capture and storage – which XR called extremely costly technologies that are not yet developed to remove carbon on the scale necessary.
ASIA PACIFIC
Barossa banks – A new report has revealed that nine private financial institutions poured a collective $1.15 bln into the Barossa gas project – Santos’ massive and controversial offshore gas reservoir in the Timor Sea – despite most having committed to net-zero emissions, Renew Economy reports. The nine banks provided loans to build the Floating Production Storage and Offloading (FPSO) vessel, a ship that will process gas extracted at the Barossa field and transport it to the existing Darwin liquefied natural gas (DLNG) facility. According to the report, Betting on a Sinking Ship, all but two of the banks involved have net zero by 2050 commitments enshrined in their lending and investment portfolios, under the UN-convened Net-Zero Banking Alliance (NZBA). The Barossa project is expected to release 13.5 mln tonnes of CO2e per year, amounting to around 3% of Australia’s annual carbon emissions, even, according to the report, with proposed carbon capture and storage (CCS). Scientists from the Intergovernmental Panel on Climate Change and the International Energy Agency have both repeatedly warned that to meet net-zero by 2050, the world must stop opening new oil and gas fields immediately.
Vietnam funds – Vietnam’s energy storage sector will be a beneficiary of $35 mln funding from the Asian Development Bank (ADB) and non-profit Global Energy Alliance for People and Planet (GEAPP), Energy Storage news reports. The two organisations have partnered to make the funding available to improve energy access and accelerate the transition away from fossil fuels in the South and Southeast Asian regions. As ADB managing director general Woochong Um said as the agreement was announced, two of the bank’s most important priorities are “expanding clean energy for the 350 million people in our region who have either limited or no access to electricity,” as well as catalysing the transition “from coal and other fossil fuels toward clean, affordable, and reliable energy sources”. Meanwhile GEAPP CEO Simon Harford said that while there is a big opportunity to address those major challenges and decarbonise the region’s energy sector, low and middle-income countries only accounted for 8% of the world’s total energy transition investments in 2021. That was the lowest share seen in 10 years, and while 2022 was slightly better, with 15% of investments made worldwide seen in low and middle-income nations, it still isn’t enough.
Tougher disclosures – Hong Kong’s bourse (HKEX) has published a consultation paper seeking market feedback on proposals to enhance climate-related disclosures by listed firms under the environmental, social and governance (ESG) framework, according to South China Morning Post. Under HKEX’s proposals, listed firms will have to disclose any climate-related targets they have set, and whether any climate change mitigation and adaptation efforts they undertake will change their business models and strategies. The new rules will apply to ESG reports to be published in 2025, for financial years beginning on or after Jan. 1, 2024, the HKEX said. Market participants are encouraged to submit their comments by July 14.
VOLUNTARY
Cliff em’ all – Australian junior oil and gas exploration and production company Pilot Energy Limited and Canada’s Svante Technologies have entered into a MoU to target integration of Svante’s market-leading solid sorbent-based post-combustion carbon capture technology with Pilot’s Cliff Head CO2 storage project, the companies said in a press release on Tuesday. Under the MoU, Pilot and Svante will collaborate to evaluate and deploy full-service carbon management solutions from the point of CO2 capture, transportation, and permanent storage at Cliff Head. The parties will initially target the decarbonisation of some 8Mt/annually from the Western Australian Kwinana Industrial Area as reported by the Kwinana Industries Council.
SCIENCE & TECH
Nutritious CO2 – NovoNutrients announced the signing of a technology development agreement under which Australia’s Woodside Energy would contribute up to $3 mln to NovoNutrients, subject to the completion of certain milestones, the company said in a press release. NovoNutrients’ technology converts industrial CO2 emissions into high-quality protein, with the potential to abate greenhouse gas emissions and contribute to the world’s food and feed supply. The collaboration with NovoNutrients is aligned with Woodside’s view of carbon capture and utilisation (CCU) as an emerging field offering alternative lower-carbon solutions. NovoNutrients’ technology has been operating at a lab-scale. This agreement supports the construction and operation of a larger pilot-scale system. The pilot-scale system will seek to both advance the design of commercial-scale plants and deliver increased sample product volume for further validation by NovoNutrients’ strategic partners, including Woodside. The agreement with Woodside means the company can deliver meaningful carbon benefits sooner, while also tackling the world’s need for protein, according to David Tze, chief executive of NovoNutrients.
AND FINALLY…
Teammate Pollutant Ninja Trollhunters – A group of internet vigilantes called Team Ninja Trollhunters has been combating climate change denial on Twitter since 2019, the BBC reports. Comprising 25 members from around the world, the group initially focused on fact-checking false claims and providing factual information in response to misleading tweets. However, they soon realised that facts are irrelevant to many climate change deniers. The “ninjas” then began monitoring prominent Twitter accounts that disputed climate change science and reported any content that violated the platform’s rules. The group claims to have been responsible for the suspension of about 600 denier accounts on Twitter. While some members, including several founders, have now left the platform since it was purchased by Elon Musk, others remain to combat the spread of climate misinformation.
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