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TOP STORY

Lead lawmaker set to snub efforts to create EU carbon removals market -sources

Efforts to create an EU carbon removals market face an uphill struggle as the option is set to be disregarded by the lead lawmaker on the issue, according to parliamentary sources.

EMEA

ANALYSIS: Europe faces fresh hydro worries as continent braces for hot, dry start to summer

After a warm and dry winter, Europe enters the spring with concerns over whether last year’s extremely low hydro power generation may repeat, as weather experts predict likely heatwaves and drought over the coming months that may significantly tighten clean energy supply and crank up EUA demand.

Euro Markets: EUAs drop through technical supports as buying evaporates, as UK market hits 17-month low

EUAs dropped through two key technical supports and reached their lowest in more than three weeks in Friday trading as sentiment continued to turn bearish as the compliance buying season neared its end, while UKAs continued their slide to reach a 17-month low.

EU crypto regulation fails to cover environmental impact of industry, warns think-tank

Strong regulation on tokenising climate and biodiversity credits is urgently needed to avoid claims of greenwashing and mis-selling to consumers, a think-tank warned Friday, adding that the environmental impact of mining crypto assets was downplayed in legislation passed by the bloc’s parliament this week.

Zambian govt says won’t downgrade protected status of key forest, to preserve it through carbon finance

The Zambian government has said will not downgrade the protected status of a key forest in the country and will instead seek to fund its conservation through carbon finance.

Portugal’s transport carbon tax to be extended to private jets

Portugal’s carbon tax for air- and sea-based travel will be extended to private jet flights with a capacity of up to 19 passengers.

AMERICAS

Chile issues resolution to exempt renewables from carbon tax

The Chilean government this week published a resolution that will prevent renewable electricity providers from having to pay into the country’s $5/tonne carbon tax which subsidised fossil fuel-fired generation.

US Carbon Markets and LCFS Roundup for week ending Apr. 21, 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 the advancement of several climate bills in the California Senate, a court decision on a Maine hydroelectricity line, Vermont’s Affordable Heat Act passing the House, and a carbon offsets bill in Texas.

North American carbon recaptures speculative interest, as group lifts CCA holdings to 14-month high

Financial entities raised their California Carbon Allowance (CCA) holdings to levels not seen since last winter, while emitters similarly boosted their North American carbon market net positions as WCI prices soared to 7-month highs, data from the US Commodity Futures Trading Commission (CFTC) showed Friday.

US recommends $562 mln from Infrastructure Law for climate resilience

The US Department of Commerce is recommending $562 million from the Bipartisan Infrastructure Law be used to fund climate resilience projects across 30 states, Vice President Kamala Harris announced on Friday.

ASIA PACIFIC

Taiwan plans mid-year launch of carbon exchange

Taiwanese regulators have teamed up with the island’s main stock exchange to build and launch a carbon trading platform that will launch around mid-year as part of Taiwan’s efforts to reach net zero emissions by 2050.

Australia to launch sovereign green bonds programme, develop sustainable finance taxonomy

Australia it will launch a sovereign green bonds programme next year as well as develop a sustainable finance taxonomy, in a bid to encourage greater, more transparent private sector investment in the energy transition.

Lack of demand key issue for Thailand’s fledgling carbon market, bank says

A lack of demand from businesses and clear regulation in Thailand is likely to stymie the growth of the nation’s nascent carbon market as heavy emitters look cut emissions at source, according to analysts.

CN Markets: CEA sees improved liquidity, but pessimistic sentiment drags on price

Weekly trading volume in China’s national emissions market improved from the previous week, though the spot price for Chinese CO2 allowances was dragged down by a block deal amid sluggish demand.

Japanese shipping firm to invest in carbon removal projects

A Japanese shipping giant has set a target to remove over 2 million tonnes of CO2e by 2030 by investing in carbon removal projects, the company announced on Friday in an update on its climate and environmental targets.

INTERNATIONAL

Australian, Canadian firms team up to develop CCS solutions for heavy industry

An Australian oil and gas company venturing into the carbon management space has signed a Memorandum of Understanding (MoU) with a Canadian carbon capture and removal technology firm, to collaborate in the offering of a ‘one-stop shop’ solution for industrial businesses dealing with hard to avoid CO2 emissions, they announced on Friday.

BIODIVERSITY (FREE TO READ)

Second partnership launches novel eDNA biodiversity air-based commercial sampling

A first-of-its kind technology to filter environmental DNA (eDNA) from air samples to monitor terrestrial biodiversity will scale as a commercial service from a collaboration announced Friday, on the heels of an eDNA marine sampling partnership launched earlier in the week.

COMMENT

Emissions trading: the market is overlooking UK cap reforms

The UK ETS is instrumental in achieving the country’s net zero emissions goals and enhancing opportunities for carbon investors, but the British government’s commitment to implementing reforms necessary for a robust carbon market has been overlooked amid the mainstream media’s focus on the lack of green industry incentives, write Ruben Lubowski and Callum Lee, Lombard Odier Investment Managers.

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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

EMEA

Just a bit longer – South African President Cyril Ramaphosa will be asked to speak to his counterparts in countries offering Just Energy Transition Partnership (JETP) channelling of $8.5 bln of climate finance to close coal-fired power plants to explain why the nation will depend on the dirtiest fuel for longer. The National Energy Crisis Committee, set up by Ramaphosa to try and alleviate an unprecedented energy crisis, will make the request to the president, Bloomberg reported, citing an anonymous government official. The funding partners are likely to take a pragmatic attitude given the power crisis and political constraints, people familiar with the situation have previously told Bloomberg.

Balkan boom – Western Balkan nations are seeing a boom in solar energy investment, which could help ease a power crisis that had threatened a shift away from coal, but industry officials say transmission systems are not prepared for new energy feeds, EurActiv reports. North Macedonia’s Economy Minister Kreshnik Bekteshi said investors have started to invest “quite furiously” in solar plants and that his country, which is a power importer, has become a regional hub for renewable energy sources. Since 2021, solar parks with 139 MW capacity have been built while up to 300 MW of new solar energy is planned to be produced by the end of 2023, officials estimate. However, transmission and distribution grids are not prepared to absorb such sudden feeds of solar energy and need to expand in order to accept and balance the energy.

Czech your heating – The European Commission approved a €401-mln Czech scheme to promote green district heating. The scheme will encourage the decarbonisation of heat generation units connected to district heating systems and will run until December 2024. The installation of new renewable heat generation running on biomass and waste with a capacity above 500 kW will be supported. The scheme is expected to support the installation of around 345 MWt of renewable heat generation.

ASIA PACIFIC

Hydrogen match – Keppel Infrastructure and ExxonMobil Asia Pacific have signed a memorandum of understanding (MoU) to develop access to low-carbon hydrogen and ammonia for scalable commercial and industrial applications in Singapore, Offshore Energy reports. According to Keppel, this MoU follows the Singapore government’s launch of its National Hydrogen Strategy in Oct. 2022, which expects hydrogen to meet up to half of Singapore’s power needs by 2050. As part of this hydrogen strategy, the Energy Market Authority (EMA) and the Maritime and Port Authority of Singapore (MPA) issued an expression of interest in Dec. 2022 for proposals to build, own, and operate low- or zero-carbon power generation and bunkering facilities on Jurong Island. To this end, Keppel and ExxonMobil are now collaborating to address the call to develop competitive solutions that can support Jurong Island’s sustainability goals and Singapore’s hydrogen strategy. Keppel said it is also looking to use low-carbon hydrogen for Singapore’s first hydrogen-ready 600 MW advanced combined cycle power plant. The Keppel Sakra Cogen Plant is expected to operate with at least 30% hydrogen and will have the capability of shifting to run entirely on hydrogen. Currently under construction, the plant will be sited on Jurong Island and is expected to be completed in the first half of 2026.

Bio piloting – Sweden’s Creturner Group has signed a Letter of Intent (LOI) in Australia with Velocity Energy Australia, where the companies will act to establish Creturner’s biochar technology on mining and agricultural sites in Australia and New Zealand. The aim is to create a pilot plant like the one being developed in Sweden and then, if customer requirements are met, to expand and scale.

Unfavourable direction – Japan, the world’s fifth-biggest carbon emitter, saw its emissions rise for the first time in eight years, driven by a post-pandemic recovery that the nation said mirrored similar increases across the world’s most advanced economies, Bloomberg reports. The country’s emissions expanded 2% in the fiscal year ending March 2022 to 1.12 bln metric tons of CO2e, according to data released Friday by the environment ministry. Compared with other members of G7, Japan’s emissions-reduction trajectory is furthest from what’s needed by 2030 to reach net zero by 2050, the Bloomberg report said. Japan has said it needs to cut emissions by 46% by the end of this decade in order to meet its mid-century net zero goal, though the national decarbonisation strategy has faced scrutiny for its heightened focus on CCUS, co-firing ammonia and hydrogen in coal and natural gas plants.

More actions needed – Semiconductor manufacturing is projected to emit 86 mln tonnes of CO2e globally by 2030, more than Portugal’s total emissions in 2021, a report by non-profit Greenpeace has found. The sector is also expected to consume 286 TWh of electricity globally by the end of this decade, higher than Australia’s 2021 electricity consumption. Given the industry’s characteristics, air pollution and emissions from the electronics supply chain are disproportionately concentrated in East Asia, according to the report. However, no major semiconductor manufacturers, display manufacturers, or final assembly companies have issued climate commitments that are in line with limiting global heating within 1.5 degrees C by 2030, Greenpeace said.

AMERICAS

Ontario carbon capture – Premier Doug Ford’s government is opening the door to allowing underground carbon capture in Ontario. The government brought in legislation to repeal Ontario’s previous ban on injecting CO2 underground, and is now proposing rules for carbon capture pilot projects. Ontario’s Minister of Natural Resources, Graydon Smith, is calling carbon capture a big opportunity for the province. (CBC)

Domestic affairs – The US Department of Energy on Friday announced $52 mln for 19 selected projects to strengthen the country’s domestic solar supply chain, and $30 mln in funding for technologies to help integrate solar energy into the grid. The research, development, and demonstration projects aim to enhance domestic solar manufacturing, support the recycling of solar panels, and develop new American-made solar technologies, the DOE said in a press release.

AVIATION

Wizz bang – European low-cost carrier Wizz Air has signed an MoU with Spanish energy company Cepsa for the supply of sustainable aviation fuel (SAF) from 2025, the Budapest-based airline’s third renewable fuel deal in six months. While the volume to be acquired through the latest agreement was not disclosed, the airline said the agreement would enable it to use blended SAF on flights from 14 destinations in Spain. In February, Wizz Air signed with renewable fuel company Neste for the supply of 108,000 tonnes of blended SAF for three years, again from 2025, for use on its European and UK flights. And late last year, it signed another MoU to acquire up to 185,000 tonnes of blended SAF from Vienna-based renewable fuel supplier OMV between 2023 and 2030. The deals support a commitment by Wizz Air to cut CO2 emissions by 25% per passenger kilometre by 2030 and achieve net zero carbon emissions by 2050. (GreenAir)

Air SAFada – Montreal-based airline Air Canada on Friday announced the purchase of 9.5 mln L of SAF, which will generate GHG reductions of 23,500 tCO2e based on a full lifecycle assessment. In a press release, the airline said it is continuing to advance initiatives in its Climate Action Plan by strengthening gits partnership with SAF producer Neste to power flights from San Francisco International Airport.

VOLUNTARY

Ocean working group – Offset standard manager and developer Verra on Friday published an invitation for interested stakeholders to apply for a new Ocean Carbon Working Group. The working group aims to identify and develop updates to VCS Program rules and requirements related to ocean-based activities, including macroalgal cultivation, seabed management, alkalinity enhancement, electrochemical approaches, nutrient fertilisation, artificial upwelling, and artificial downwelling. Applications are accepted by June 9, and Verra expects to finalise the selection of the working group members by late June and convene the first meeting soon thereafter.

AND FINALLY…

Oh my god, he admit it – Growth in oil and gas production ends immediately in Shell’s latest pathway for staying below 1.5C, new Carbon Brief analysis reveals. The admission that continued growth in fossil fuel output is incompatible with 1.5C is significant, because it comes from one of the world’s biggest public oil and gas companies. Shell had previously claimed that oil and gas production could rise for another decade, even as warming was limited to 1.5C. The dramatic shift in its new “Energy Security Scenarios” is not explicitly acknowledged, but, as Carbon Brief’s analysis shows, is hidden in plain sight. Key to the faster fall in fossil fuel use in the new pathway is much slower growth in global energy demand, which Shell had previously insisted was all-but unchangeable. While Shell’s new scenarios are more closely aligned with the conclusions of independent research, its 1.5C pathway still contains relatively high levels of ongoing fossil fuel use. If the world followed Shell’s pathway, it would “overshoot” the 1.5C limit for decades, before returning below that level by using largely unproven, energy-intensive machines to suck large volumes of carbon dioxide (CO2) out of the atmosphere towards the end of the century. The fossil fuel giant stresses that its scenarios are not intended as forecasts, projections, or indeed business plans. Despite being a major oil-and-gas producer, it also states that meeting global climate targets is “not within Shell’s control”.

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