(Friday’s CP Daily was held over to Saturday in order to include the conclusion of the G7 summit)
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TOP STORY
EXCLUSIVE: Tanzania signs Africa’s ‘biggest’ forest carbon deal with Singapore holding company, lines up more deals with foreign investors
Tanzania has signed an MoU with a Singapore-registered holding company that was incorporated just six weeks ago to develop what could be by far the biggest carbon credit project yet in Africa, with sources telling Carbon Pulse that the government has other similar agreements akin to Zimbabwe’s controversial new approach that it has lined up with foreign investors.
INTERNATIONAL
G7 endorses more gas investment as “temporary” solution to kick Russian energy dependence
The G7 on Saturday endorsed new investments in natural gas as a “temporary” solution to reduce countries’ dependence on Russian energy amid the war in Ukraine, drawing sharp criticism from climate campaigners.
Verra to move ahead with carbon credit labels for removals, Article 6 readiness
Offset standard manager and developer Verra on Friday said it will launch carbon credit labels to signify emissions removals and compatibility with the Paris Agreement, while ditching designations for other project attributes.
Engineered removals community slams ‘skewed’ UN stance ahead of key talks
Proponents of engineered carbon removals have questioned the impartiality of a UN document published this week to help prepare for the next round of talks to shape a new global carbon crediting mechanism, fearing the divisive text will further slow progress.
Ghana and Thailand leading the way on Article 6 efforts -report
Ghana and Thailand are frontrunners among major carbon credit-supplying nations in the Global South in taking steps to enable international emissions trade under the UN Paris Agreement, according to a report published on Friday detailing progress among the selected 20 countries.
VOLUNTARY
INTERVIEW: Investors need high returns in risky voluntary carbon business
Institutional investors need a rate of return on parity with top quartile private equity to overcome the risks associated with pumping money into the voluntary carbon market, a finance company boss told Carbon Pulse on Friday.
Colombia Indigenous people’s REDD+ lawsuit progressing could set precedent in voluntary carbon market
Colombia’s High Court has selected to hear a lawsuit from an Indigenous group against a REDD+ project within their territory in the Amazon rainforest, potentially setting a precedent for drawing legal limits on similar voluntary carbon market (VCM) projects in the country, a media alliance reported Thursday.
ASIA PACIFIC
Analysts pan Japan’s climate policy as protests erupt ahead of G7 meeting
Japan is unlikely to meet its Paris Agreement emissions pledge based on its current policies, analysts have said, as activists worldwide on Friday protested the country’s fossil fuel dependence while G7 leaders gather for their annual summit in Hiroshima.
China releases blue carbon guidelines
China this week released technical regulations and requirements for three types of blue carbon methodologies, as the world’s biggest-emitting nation gears up efforts to deploy nature-based solutions to help meet its climate commitments.
CN Markets: CEA trading volume improves on the back of three block deals, CCER liquidity falls
Liquidity largely improved in China’s emissions market over the past week with an uptick in prices, thanks to the contribution of three block deals, though cooling demand continues to weigh on the market amid regulatory uncertainties.
New Zealand launches consultation on ETS settings, NZU price rises
New Zealand opened a consultation Friday on the price settings and controls of its emissions trading scheme for the period of 2024-28, however some observers are expressing frustration at the government’s slow pace of reform.
Landscape monitoring tech company raises $9 mln in Series A funding round
A natural capital tech company has successfully raised $9 million from a Series A funding round, as it looks to expand its global operations and customer base.
AMERICAS
New York schedules cap-and-trade webinars to inform rulemaking design
New York government agencies on Friday announced a series of webinars next month to solicit initial input on crafting the state’s cap-and-invest regulation, as it also disclosed the rough process for completing the rulemaking and said it will consider the design of existing North American economy-wide carbon markets.
US Carbon Markets and LCFS Roundup for week ending May 19, 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 North Carolina’s Senate passing a budget that would block a RGGI-modelled cap-and-trade system, Colorado regulators considering a market-based climate programme for industrial emitters, and New York lawmakers advancing clean fuel standard legislation to the Senate floor.
Emitters take advantage of pre-auction CCA price dip, financial players prefer RGGI
Producers increased California Carbon Allowance (CCA) holdings as permit prices dipped ahead of the WCI Q2 auction, while financial entities sold down their CCA net length but added to RGGI Allowance (RGA) holdings, data from the US Commodity Futures Trading Commission (CFTC) showed Friday.
US DOJ gives California man 40-month prison sentence for biofuel credit fraud
The US Department of Justice (DOJ) on Friday sentenced a Los Angeles resident to 40 months in prison after he pled guilty to wire fraud by selling fraudulent biofuel credits under the Renewable Fuel Standard (RFS).
EMEA
Euro Markets: EUAs post 1.6% weekly gain despite afternoon selling, as UKA rally fizzles
European carbon prices recorded a second successive weekly gain on Friday after four weeks of declines in April, giving back early gains driven by macroeconomic optimism as energy markets turned bearish in the afternoon, while the two-day rally in UKAs fizzled out in active trade.
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CONFERENCES
Grow to Zero! – June 26-27, London: Insightful discussions on carbon market evolution? Thought leadership on blended finance for impact? Networking with impact investors and sustainability professionals? Find it all at Gold Standard’s Conference, Grow to Zero! 26-27 June 2023 at Kings Place, London. Tickets and agenda details available here: www.growtozero.co.uk
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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
Within reach – The world can successfully keep global warming below 2C if every country meets every commitment made through June 2022 to slash greenhouse gas emissions, according to a study published in the journal Nature Climate Change. If countries were to meet only their 2030 goals, the report finds it wouldn’t be enough to keep warming at 1.5C or even “well below” 2C — limits baked into the Paris Agreement in 2015. But if national governments hit climate commitments for 2030, 2050 and 2070, four climate models concluded that limiting warming to 1.7C to 1.8C is likely, per an analysis led by researchers at the Basque Center for Climate Change in Spain. (Bloomberg)
EMEA
Berlin baulk – Germany’s BDI industry association has urged the government to reduce the electricity tax to the European minimum level to help companies in Europe’s largest economy remain competitive, Reuters reports. The association also urged the government to agree a short-term instrument to protect companies through state subsidies amid worries about firms shifting production to countries with lower power prices. Read Carbon Pulse’s reporting on Germany’s economy ministry earlier this month announcing a plan contested within government for energy-intensive companies to receive billions of euros in state subsidies to lower their electricity costs on certain conditions. The proposal however has met with resistance in the finance ministry.
Shell suit – Activist investor lawyer group ClientEarth said on Friday it was challenging a London court decision to dismiss its novel lawsuit against oil major Shell’s board over alleged climate risk mismanagement. The group said it would ask the High Court to reconsider the decision at an oral hearing about the case – the first notable investor lawsuit against directors over the alleged failure to properly prepare for a shift from fossil fuels. If judges allow the action to proceed, it could encourage investors in other companies, including in those funding carbon emitters, to litigate against boards that fail to adequately manage climate-related risks, lawyers have said. (Reuters)
Get real – Italy needs to be more realistic when setting climate targets for 2030 in its energy plan overhaul, said Michele Benini, a director at state-owned research centre RSE. The revision of the national energy and climate plan (NECP), which is set to be unveiled by the end of June, “needs to be a bit more realistic” as many factors from the 2019 previous plan have changed. He pointed to changes in demographics, GDP, energy prices and the cost of EU ETS allowances as examples, especially in light of unprecedented events of the past four years, from the global pandemic to Russia’s invasion of Ukraine. (Montel)
Cronyism – The departure of German energy state secretary Patrick Graichen, as well as the public dispute about government plans for a de-facto ban of fossil heaters, have destroyed a lot of trust in government climate action, according to an opinion piece in the German media, translated by Clean Energy Wire. Climate protection was delayed for decades by previous governments and Habeck and the Greens are just learning painfully how powerful the forces of inertia are in the country, the piece in Westdeutsche Allgemeine Zeitung (WAZ) reads. Graichen’s leaving is not good news for climate protection and finding a suitable replacement will not be easy.
AMERICAS
Thanks, Ibama – A decision by Brazil’s environmental regulator to block state-owned oil company Petrobras’ Amazon oil project has exposed tensions in President Luiz Inacio Lula da Silva’s coalition between those wanting to protect Brazil’s environment and those prioritising economic development at any cost. Brazil’s environmental regulator Ibama, late on Wednesday, said it would block a request by state-run oil giant Petrobras to drill at the mouth of the Amazon river near Amapa, in a much-awaited decision that followed a technical recommendation by Ibama experts to reject the project. Senator Randolfe Rodrigues, who represents the state of Amapa, said Ibama had taken a decision with major economic impact for the state without taking into account the views of the people of Amapa or its state government. Rodrigues is a senior Lula ally who ran his presidential campaign last year. “We’ll fight against this decision,” Rodrigues wrote on Twitter, adding that “the people of Amapa want to have the right to be heard”. He later announced he was departing his party, the center-left Sustainability Network, in light of the decision. The Sustainability Network was founded in the early 2010s by current Brazilian environment minister Marina Silva, who appointed Ibama head Rodrigo Agostinho. (Climate Home)
AMPD up – Investment company CNIC on Friday announced the launch of an exchange-traded fund, the CNIC ICE US Carbon Neutral Power Futures Index ETF, on the New York Stock Exchange (ticker: AMPD). AMPD is based on US electricity and carbon allowance futures contracts and seeks to track the performance of the ICE US Carbon Neutral Power Index that was launched on the bourse in January.
Ain’t a sin to RIN – Meanwhile, ICE on Friday announced the equivalent of over 2 bln US Renewable Fuel Standard credits (RINs) had traced on ICE year to date through May 15, already surpassing the 2022 total of 1.6 bln. The equivalent of 627 mln RINs traded during April, a new record for a single month. Meanwhile, across ICE’s D6 ethanol and D4 biofuel futures (OPIS), open interest is at a record high equivalent to 727 mln RINs.
ASIA PACIFIC
Green Queen(sland) — The Queensland government has unveiled a plant to support the development of clean energy manufacturing hubs across the state, to capitalise on the global decarbonisation boom, RenewEconomy reports. To finance the Queensland New Industry Development Strategy (QINDS), the government will tap into the A$5.84 bln Queensland Jobs Fund as well as the catalyst Regional Economic Futures Fund, with a focus on regional economic growth, in particular those regions directly affected by the transition to a low-emissions economy. QNIDS will target building up the manufacturing and supply chain capabilities in six key areas, including renewable energy, critical minerals, batteries, green hydrogen, recycling and biofuels.
Full steam ahead — Sembcorp Industries announced it will develop a new multi-utilities centre on Jurong Island, Singapore, that will supply power, steam and demineralised water, among other things, to customers, the Strait Times reports. The development of the new facility will cost an estimated $900 million, and is expected to be financed through a mix of internal cash resources and external bank borrowings, the company said. Construction of the centre is expected to commence in the second half of this year, and be fully operational by 2026. The facility will include a new 600 MW hydrogen-ready power plant, which will be developed by a consortium comprising of Mitsubishi Power Asia-Pacific and Jurong Engineering. Mitsubishi Power has also been awarded a long-term service agreement for the maintenance of the power plant.
SCIENCE & TECH
There’s no lake to clean me – Water loss in large lakes around the world was more widespread during the past three decades than previously thought, according to a study of nearly 2,000 such lakes published in the journal Science on Thursday. A warming climate and human water consumption drove at least half of the decline in natural lakes, the study found. Reservoirs, or artificial lakes, also showed substantial drops. (Washington Post)
AND FINALLY…
Rewire by app – Tens of millions of people are expected to have completed a Rewired Earth survey by December’s COP28 UN climate negotiations in Dubai, with an on-the-spot phone app-based voting session witnessed by Carbon Pulse this week at the Green BEERS networking event in London. With this mass public engagement campaign, the non-profit aims to help democratise sustainable investment. The survey asks respondents what sustainability focuses they want businesses to have, and in what order. Rewired Earth then aims to harness this to influence companies, financiers, and governments to invest in sustainable solutions.
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