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TOP STORY
Eleven carbon credit programmes pitch for CORSIA eligibility
Eleven carbon credit programmes, including national registries from Japan, South Korea and Thailand, have applied for their carbon credits to have eligibility in CORSIA, the international aviation emissions scheme devised by the UN body ICAO, between 2024-26.
EMEA
German minister unveils plans to support heavy industry, faces battle for approval
The German economy and climate ministry unveiled plans to subsidise power prices for ETS-covered heavy industries on Friday, though the idea faces a battle for approval in the country’s coalition government as the finance ministry said funds were lacking.
Euro Markets: EUAs post modest gain after early short-covering rally unwinds, while UKAs rise a second day
EU carbon prices nudged higher despite giving up gains of as much as 2.6% on Friday, after early short-covering and de-risking ahead of a three-day weekend in the UK gave way to renewed weakness, while UK carbon posted its second consecutive daily increase after three weeks of declines.
Airline group seeks carbon removal credits to plug hole in SAF supply
A European airline group plans to buy up to 100 million carbon removal credits by 2050, and potentially 2 mln a year by 2030, it stated Friday, adding that this requires clear and globally agreed verification and quality standards, inclusion of the credits in emission trading schemes, and stable policy support.
ASIA PACIFIC
Indonesia hammering out governance details on carbon trading
Indonesian President Joko Widodo held a closed door meeting with ministers this week to finalise governance structures for carbon credit exports in the country, however there is still debate around how it will be conducted, Carbon Pulse understands.
CN Markets: CEA trading remains slow amid loose demand-supply dynamics
Activity in China’s carbon market has remained slow in recent weeks with low trading volumes and prices, driven by low permit demand amid pessimistic economic expectations and new rules that could further boost supply in the market, analysts said.
Australia Market Roundup: Government announces Net Zero Authority, as regulator makes big landfill gas issuance
The Australian government has announced it will establish a new agency to oversee the country’s transition to net zero emissions in a way that benefits workers, industries, and communities.
AMERICAS
US Carbon Markets and LCFS Roundup for week ending May 5, 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 rescheduled and newly scheduled hearings for California climate and cap-and-trade bills, committee approval of a bill to develop offset projects on Alaska state-owned lands, progress on a Delaware climate bill, and Vermont’s governor once again vetoing clean heat standard legislation.
US EPA’s ‘e-RINs’ proposal faces statutory authority questions, support from rival stakeholders
Federal lawmakers are questioning inconsistencies in the US EPA’s proposed ‘e-RINs’ pathway for renewable electricity supplied to electric vehicles (EVs) to generate Renewable Fuel Standard (RFS) credits, which has drawn renewed support from biogas groups in recent days following reports of possible delays.
Speculators reverse course on CCAs, compliance and financials shed RGGI
Financial entities built up their California Carbon Allowance (CCA) net length this week as they continued to pare down in RGGI, while compliance players shed length across the board, data from the US Commodity Futures Trading Commission (CFTC) showed Friday.
VOLUNTARY
Climate tech outfit launches platform to open up access for carbon credit trading
A Singapore-headquartered climate tech company has launched a climate investing platform to leverage technology with the aim to make investing in carbon markets more accessible, in so doing seeking to empower individuals to take climate action, it announced on Friday.
Carbon-negative cement startup led by ex-NBA star raises $12 mln in pre-seed funding
A startup co-founded by an ex-NBA star that has developed carbon-negative cement has raised $12 million in pre-seed funding.
Ratings firm downgrades scores of two African forestry projects, upholds another
A carbon credit ratings agency has downgraded two Verra-certified African afforestation projects while upholding the score of another.
INTERNATIONAL
Investment in sustainable food systems will yield drastic cut in methane emissions by 2050 -report
Innovations in three key sectors of the global food system, including livestock, food loss and waste, and rice cultivation, can help meet climate targets by reducing methane emissions by up to 75% by 2050, a report has found.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Biodiversity Credit Alliance expects to release first output by August
The UN-backed Biodiversity Credit Alliance (BCA) expects to release the first results of its work within the next three months, with a glossary of terms, demand side concepts, and the inclusion of Indigenous peoples and local communities among the first issues to be tackled by the group.
More than 30 banks join UN initiative on biodiversity targets
More than 30 banks have joined a working group led by the UNEP Finance Initiative (FI) to hash out guidelines for financial institutions to set nature-related targets and align their portfolios with global biodiversity targets.
Biodiversity credit developer raises £600,000 in investments
UK-based biodiversity credit developer rePlanet Wildlife has secured £600,000 in fresh investments to help it roll out its global portfolio of nature protection projects.
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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
Swedish support – The European Commission has approved a €2.6 bln Swedish scheme to support companies active in southern Sweden in the context of Russia’s war against Ukraine as part of the bloc’s State aid Temporary Crisis and Transition Framework that eases subsidy rules in the name of energy security. The scheme will provide grants to companies of all sizes and sectors active in southern Sweden, with the exception of financial companies.
ASIA PACIFIC
Crypto deal – Bhutan and Singapore-based Bitdeer have announced plans to raise $500 mln to set up crypto mining operations that use the Himalayan kingdom’s plentiful hydropower, Economic Times reports. Huge amounts of electricity are needed to power the vast computer farms that mine for cryptocurrency, leading to heavy criticism of their impact on the climate and a search for greener mining options. Soaring energy costs have also squeezed crypto firms, leading to the birth of several initiatives to find cheaper and more sustainable ways to power their operations in a notoriously risky and volatile industry. The initiative announced by the Bhutan government’s investment arm Druk and Nasdaq-listed crypto-mining firm Bitdeer includes the construction of data centres and investment in renewable energy such as hydropower and hydrogen.
Power plan – India plans to stop building new coal-fired power plants, apart from those already in the pipeline, by removing a key clause from the final draft of its National Electricity Policy (NEP), in a major boost to fight climate change, Reuters reports. The draft, if approved by the federal cabinet chaired by Prime Minister Narendra Modi, would make China the only major economy open to fresh requests to add significant new coal-fired capacity. The new policy, if approved, would not impact the 28.2 GW of coal-based power in various stages of construction. China and India have together been lobbying for freedom for countries to choose a roadmap to cut emissions. India, whose proposed coal power capacity is the highest after China, had repeatedly refused to set a timeline to phase out coal, citing low per-capita emissions, surging renewable energy capacity, and demand for inexpensive fuel sources. Coal is expected to be the dominant fuel in generating electricity in India for decades, but activists have pressed for a halt to new coal-fired plants, arguing this would at least help to reduce the share of the polluting fuel in overall power output.
Another Power plan – Vietnam aims to more than double its power generation capacity by 2030, but has slightly lowered its target for offshore wind and will heavily rely on coal until the end of the decade, according to a government document, Reuters reports. Total installed power generation capacity in the Southeast Asian country is projected to reach 158 GW by 2030, more than previously estimated and up from 69 GW in 2020, according to the document which detailed government’s plans discussed with foreign investors and diplomats. The 2030 target for offshore wind capacity, which is expected to attract billions of dollars of foreign investments, is set at 6 GW from zero now, the document said – slightly lower than the 7 GW target included in a December draft of the country’s power development plan. Capacity could soar to over 90 GW by 2050, according to the targets indicated by the government, which are still subject to changes until they are approved under a new power plan.
New funding – Japan will contribute $25 mln to help countries in the Asia-Pacific region address the issue of climate change via a new financing mechanism by the Asian Development Bank, NHK reports, citing comments made by Finance Minister Shunichi Suzuki. The programme, named Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP), will allow the development bank to provide up to 15 bln dollars in loans, according to the report.
Carbon neutral capital – The Asian Development Bank (ADB) and Nusantara National Capital Authority (NNCA) have concluded a memorandum of understanding (MoU) that paves the way for collaboration on the planning and development of Nusantara as a carbon-neutral forest city, ADB stated in a press release. The agreement was signed today on the sidelines of ADB’s 56th Annual Meeting between NNCA Chairman Bambang Susantono and ADB Vice President for East Asia, Southeast Asia, and the Pacific Ahmed M. Saeed. Under the MoU, ADB and the government of Indonesia have committed to collaborate on ensuring the planned new capital city of Nusantara is well-designed with a reduced environmental impact and a target to be net zero by 2045. The MoU further confirms joint efforts by ADB and the government of Indonesia to mobilise financing from potential climate financing facilities and public–private partnerships to drive Nusantara’s inclusive and sustainable development.
AMERICAS
Permit proposals – New proposals from US Republican Senators Moore Capito and Barrasso would shorten the time it takes to approve and permit an infrastructure or mining project, and would speed up domestic oil and gas projects that are waiting for pipelines or electric reliability. The Republican sponsors of the legislation indicated they want to work with Democrats on permitting, though Democrats are supporting a narrower version of the permitting bill that would allow the Federal Energy Regulatory Commission to approve transmission lines deemed to be in the national interest. Lawmakers are hoping to reach a permitting deal over the summer. (Climate Nexus)
Port ahoy – The US EPA is seeking input for its $3 bln Clean Ports Program to reduce pollutants at US ports and its $1 bln Clean Heavy-Duty Vehicle Program to reduce emissions near ports and other truck routes, Reuters reported Friday. The federal agency is interested in information regarding the availability, market price, and performance of zero-emission trucks, zero-emission port equipment, electric charging, and other infrastructure needs for zero-emission technologies, to further the administration’s port electrification efforts.
Supermarket deal – Canadian grocery supermarket chain Loblaws Companies announced Thursday a deal to purchase 300,000 MWh of renewable electricity annually sourced from carbon-free solar, wind, or hydro sources to power its 280 locations across Alberta from energy infrastructure firm TC Energy, a local magazine reported. The arrangement is the first of its kind in Canada and is expected to reduce the company’s nationwide operating emissions by 17% towards a 2040 carbon neutrality goal. Retail stores under the Loblaws umbrella include Real Canadian Superstore, Shoppers Drug Mart, No Frills, and Liquor store outlets. (Mugglehead Magazine)
VOLUNTARY
Frontier file-in – Carbon removal buyers’ club Frontier has just launched its 2023 purchase cycle, inviting early-stage technology builders piloting permanent CO2 removal solutions to submit pre-applications by May 19. Smaller ventures are offered pre-payments, while larger ones are given offtake agreements. Read Carbon Pulse’s latest on the $1 bln initiative, which was founded by tech giants Alphabet, Meta, Shopify, and Stripe along with consultancy McKinsey.
SCIENCE & TECH
Decarbonising vinegar – A team of international collaborators from the University of Toronto (UfT) and Huazhong University of Science and Technology have created a catalyst using electrolysers to efficiently transform carbon monoxide captured from air into acetic acid – a key component of vinegar and feedstock used in the manufacture of paints, coatings, adhesives, and other products – which traditionally has been derived from methanol, produced from fossil fuels, according to a paper published in Nature, UfT reported Friday. Josh Wicks, one of the study’s lead authors noted that 1.6 kg of CO2 were released for every kg of acetic acid produced from methanol. Their alternative method captured gaseous CO2, passed it through an electrolyser to form carbon monoxide, and then through a second electrolyser where another catalyst transformed it into various molecules containing two or more carbon atoms. “By using electrochemistry to convert captured carbon into products with established markets, we provide new pathways to improving these economics, as well as a more sustainable source for the industrial chemicals that we still need,” Professor Ted Sargent said, from UfT’s department of chemistry.
AND FINALLY…
Energy espionage – Russia is said to be using ‘spy’ ships to gather information on UK offshore energy infrastructure, the Press Association reported, citing an investigation by public broadcasters in Nordic nations. According to the report, the Admiral Vladimirsky vessel sailed around the Baltic Sea and the North Sea for a month, passing current and future wind farms off the coast of several Scandinavian countries, as well as Britain. The broadcasters say that the ship is part of a fleet of espionage boats, disguised as fishing trawlers and scientific research vessels, which is examining key energy sites for possible sabotage. Possible targets are believed to include internet cables, offshore wind farms, and connectors carrying electricity and gas pipelines.
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