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TOP STORY
World Bank says maritime carbon tax could raise up to $3.7 trillion to decarbonise sector, modernise ports
Ahead of a key meeting, the World Bank has outlined how introducing a carbon tax on international shipping could raise up to $3.7 trillion through 2050 to finance the decarbonisation of the sector.
EMEA
Policymakers agree to slash capital requirements for EU carbon trading, decline to extend treatment to voluntary market
EU institutions have provisionally agreed to lower the perceived level of financial risk associated with EU Allowances, reducing the capital requirements banks need to hold when trading these units but declining to extend the same treatment to voluntary carbon credits.
Swiss to vote again on nation’s climate plan as government rejects CBAM for now
Switzerland faces a public vote on Sunday on whether to back the government’s draft climate law, with polls suggesting that citizens may reject legislation for a second time in two years.
Euro Markets: EUAs edge lower but post 6.4% weekly gain as market shrugs off late gas plunge
European carbon prices declined on Friday, posting a 1% loss and trimming the week’s gains after the market had failed to hold on to its substantial jump on Thursday, but shrugged off a late plunge in gas prices after North Sea production was set to increase sooner than anticipated after unplanned outages.
ASIA PACIFIC
Cambodia lines up three REDD+ projects for 2024 launch
The Cambodian government has cleared three REDD+ projects for participation in the voluntary carbon market, with project start dates set for 2024.
CN Markets: CEA price dragged down by block deal amid bearish market expecations
Spot prices in China’s national emissions trading scheme (ETS) dropped over the past week after a block deal last Friday, with market participants remaining conservative about the price outlook due to the relatively generous allowance allocation rules.
Decarbonisation measures needed for China’s express delivery industry as emissions surge -report
China’s express delivery industry needs to take more decarbonisation measures as emissions from the sector have continued to grow significantly over the past few years, a report has called for.
VOLUNTARY
V20 blue carbon auction clears near $30
An Australian carbon fund manager this week auctioned off 50,000 blue carbon credits from a major project in Pakistan, with the sale clearing close to $30.
Danish firm expands nature carbon portfolio in ‘beyond value chain’ partnership with WWF
A Danish manufacturing company has teamed up with green group WWF to add two projects to its nature-based carbon portfolio as part of its ‘beyond value chain’ mitigation plans to “capture” emissions from its historical operations dating back to 1941.
Verra launches review of improved forest management methodologies
Verra is reviewing all Improved Forest Management (IFM) methodologies which may shorten future project development timelines, the standards body announced Friday.
Kenya sets out to join LEAF Coalition while developing jurisdictional forest carbon approach
Kenya has signed a Letter of Intent (LOI) to supply emissions reductions and removals credits to the LEAF Coalition – a public-private initiative by global corporations and rich countries to purchase forest carbon credits certified by the jurisdictional Architecture for REDD+ Transaction (ART) programme.
INTERVIEW: IncubEx targets growth in clean fuel credit contracts, improvements to voluntary carbon marketplace
Environmental product development firm IncubEx is aiming to boost uptake in its suite of clean fuel credit offerings, and is also making several changes to enhance its project-specific voluntary carbon marketplace, a company official told Carbon Pulse.
Carbon finance makes switching to bioenergy crops more appealing to farmers, study finds
Bioenergy crops such as miscanthus and switchgrass, known for their multiple environmental benefits, could prove more appealing to American farmers if supported by carbon finance, according to a new study.
North American ecosystems might be more resilient to global warming than thought, research shows
North American ecosystems might be more resilient to global warming than previously thought, with potentially significant implications for climate change modelling, a new study has revealed.
Trio of Irish asset management executives resign to launch agtech firm, eye carbon exchange
Three high-ranking executives, who previously worked for the Dublin-based fund services giant Waystone, have launched a new agtech venture capital firm that is exploring the possibility of establishing a blockchain-based carbon exchange.
AMERICAS
Speculators jump back into California market, emitters take advantage of CCA price spike and reduce net holdings
Speculators raised their net holdings of California Carbon Allowances (CCAs) this week as producers took advantage of a steady price increase and reduced CCA net interest, but picked up RGGI Allowances (RGAs) despite a lack of momentum in the US Northeast power sector carbon market, data from the US Commodity Futures Trading Commission (CFTC) showed Friday.
WCI current vintage auction size slightly reduced for Q3 sale
California and Quebec will offer slightly fewer carbon allowances at this August’s auction compared to the Q2 2023 sale last month, according to a government notice published Friday.
BIODIVERSITY (FREE TO READ)
Governments must regulate to drive biodiversity action, asset manager says
Governments must introduce tougher regulations on biodiversity because companies won’t act on their own at the scale needed to stave off to nature and biodiversity loss crisis, according to a UK-based asset manager.
Biodiversity offsetting included as green investment in EU green taxonomy
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CONFERENCES
Carbon Fast Forward Mediterranean 2023 – June 22, Athens: Following the pandemic and the energy crisis in Europe, the environmental markets in the Mediterranean have gained momentum as a central tool for companies in the region to achieve their emissions reductions targets, through transparent carbon pricing and a robust cap-and-trade mechanism. The increased ambition that the European Commission has announced as part of its Fit for 55 package will bring the shipping sector into the EU ETS market and increase compliance costs for industrial installations and airlines operating in the region. Join us for this one-day, regionally-focussed event geared towards Mediterranean installation operators and shipowners. Register now, since spaces are very limited.
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
Argus Carbon Markets & Regulation Conference – July 5-7, Lisbon: In the wake of new legislative reforms to the EU ETS being confirmed, and as voluntary carbon markets continue to shift and evolve, the Argus Carbon Markets & Regulation Conference returns to Portugal to provide necessary insights for your company to remain competitive and aware of the upcoming opportunities within Europe and globally. This is your opportunity to stay up to date on the latest market dynamics through panel discussions, fire side chats, and presentations with industry peers and policy makers in-person. Join market-makers in defining both the compliance and voluntary carbon market by booking your place today. Carbon Pulse readers can enjoy a 10% discount with the code PULSE10. To find out more and to book your place, click here
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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
We’re putting a crew together – India is in discussions with South Africa, Taiwan, and several developing nations to challenge the EU’s Carbon Border Adjustment Mechanism (CBAM) at the World Trade Organization (WTO), a government official told Mint. The carbon tax is expected to affect Indian exports valued at over $8 bln annually starting in 2026. The countries are seeking a delay of the CBAM until there is clarity on its compliance with WTO rules. The officials argue that the CBAM compromises the UN’s principle of ‘common but differentiated responsibilities’ (CBDR), which recognises different levels of economic development between states in relation to their responsibility for addressing environmental damage. Furthermore, the CBAM and the EU Deforestation-Free Regulation (EUDR) are seen as discriminatory under WTO rules as they do not provide the same carbon allowances to exporting nations as they do to EU firms. Indian officials have asked the EU to treat Indian micro, small, and medium enterprises (MSMEs) the same as EU MSMEs, potentially granting them extra transition periods.
Net zero, no sense – The UK’s largest asset manager, Legal & General Investment Management (LGIM), wants fossil fuel company Shell to explain how it can reach net zero emissions by 2050 while at the same time expanding fossil fuel operations, Bloomberg reports. Shell announced on Wednesday that it will be using an even larger share of annual spending to oil and gas, a move that has been widely criticised by climate activists. Shell Chief Executive Officer Wael Sawan said the company intends to approach the energy transition with “flexibilty” and “humility”, and concentrate on areas that can generate profits. Other high-profile UK investors have also said Shell’s change in tack has left them considering a total exit. LGIM holds around 1.45% of Shell stock, making it one of the company’s top 10 shareholders.
11th hour, as usual – UN climate negotiations over the past two weeks in Bonn were rescued at the very last minute, following bitter divisions between developing and developed countries. The negotiations centred on the framework for the global goal on adaptation, an initiative aimed at enhancing nations’ resilience to extreme weather events, flooding, droughts and sea level rise. Nations reached a compromise on the outcome of the discussions, averting the real possibility of having to start all again from scratch at the main year-end COP28 summit in Dubai. (Climate Home)
#MeToo – Young women among Mexico’s delegation to the Bonn climate talks called on the UN to stop harassment and intimidation, Climate Home reports. Throughout the two-week talks of negotiations, they spoke up strongly against the “difficult experience” they experienced at the COP27 summit in Egypt last November. The head of Mexico’s delegation Camila Zepeda told a side event that lots of countries which are “usually very vocal about [human rights], here they stand quiet” and “we end up being the only ones left in the room, holding this battle against these very powerful men”. The campaign gathered momentum in Bonn and resulted in UN climate change head Simon Stiell closing the talks by saying that “harassment, be it in the form of sexism, bullying or sexual harassment is not acceptable”.
EMEA
RED ahead – EU member state ambassadors reached a deal to sign-off on the EU’s scaled-up 2030 renewable energy targets, the Swedish presidency confirmed on Twitter late on Friday. The process to rubber-stamp a provisional trilogue agreement with the European Parliament should have been a formality but it had dragged on for weeks amid French concerns over its nuclear industry. Paris had been pushing to change a non-binding ‘recital’ in the text over concerns about the cost and time needed to upgrade its gas-powered ammonia plants so that they use hydrogen produced using renewable electricity. Today’s deal paves the way for the bill to be made law, establishing a 42.5% renewable energy goal by 2030, up from the previous 32% target.
Pushing the limits – EU countries are considering a proposal that would let them prolong capacity mechanism support for coal plants by ducking CO2 emission limits, a draft document seen by Reuters showed. Energy ministers are due to vote on the issue on Monday. The EU currently allows 550 grams of CO2 of fossil fuel origin per KWh of electricity produced via capacity markets. The document said capacity mechanisms already in place before July 2019 would be allowed to dodge this limit for a limited period if certain other conditions are met. If a majority coalition back the move it would allow Poland to prolong its support scheme for coal-fired power plants, the country’s climate minister told Reuters.
Pump it up –Swedish private equity firm Vargas is targeting residential homes with smart heat pumps to tap demand that’s expected to surge 25% annually. Aira will be Vargas Holding’s fourth startup focusing on decarbonisation after battery maker Northvolt, H2 Green Steel, and Polarium. Aira has acquired a production site in Poland and is currently conducting a pilot study in Italy. The company expects to start operating in Germany and UK later this year and extend to over 20 markets by the end of the decade and provide five million European homes with greener and cheaper heating within 10 years. (Bloomberg)
Germany, Colombia partner – Germany and Colombia signed a “Partnership for Climate and a Just Energy Transition” on Friday in Berlin. The two nations aim to collaborate on expanding renewable energy, protecting the environment and biodiversity and sustainable urban development. German Federal Development Minister Svenja Schulze has promised €200 mln in additional financial support for the implementation of Colombia’s national climate goals.
ASIA PACIFIC
Ammonia deal – JERA, which produces about 30% of Japan’s electricity, has signed an ammonia sales and purchase agreement with business conglomerate Mitsui for its use in the demonstration project which will take place at the Hekinan Thermal Power Station in Aichi prefecture, it announced on Friday. JERA and IHI Corporation have been conducting a demonstration project to establish technology for the large-volume co-firing of fuel ammonia (20% of heating value) at the Hekinan plant since FY 2021. The latest agreement with Mitsui will enable JERA to secure a stable ammonia supply and will contribute to the advancement of the project, the company said.
AMERICAS
SEC punts – The US Securities and Exchange Commissions (SEC) is expected to finalise and release the climate disclosure rule in October, according to an update on the Commission’s website, JD Supra reported Friday. The SEC draft rule was first proposed in March 2022 and was expected in the fall, as per an Apr. 27 interview with former SEC Commissioner Robert Jackson, who noted the possible delay in the agency’s final rulemaking. The report was unclear whether this delay would further push back the implementation deadlines for compliance with the new rule.
Refrigeration reclamation – British sustainability firm A-Gas announced Friday it was launching its first Canadian refrigerant recovery and reclamation facility in Hamilton, Ontario. The plant is expected to begin operations in Q4 of this year. A-Gas said the facility was a multi-million dollar investment. Back in February, the Canadian federal government announced its refrigerant offset protocol. To date, no offset projects have been announced under that protocol and only one application has been made to the federal offset programme so far.
INVESTMENT
CO2-methanation project – Japanese oil giant INPEX and Osaka Gas will jointly construct one of the world’s largest CO2-methanation test facilities, which will be capable of producing 400 normal cubic meters of methane per hour, equivalent to the amount of methane consumed by about 10,000 households in Japan per day, the two companies said in a statement. The construction work will be carried out by Chiyoda Corporation based on an engineering, procurement and construction (EPC) contract signed between the parties. The project is scheduled to consist of a demonstration test involving the production of e-methane using CO2 extracted from INPEX’s Nagaoka Field Office beginning in FY 2025, according to the statement.
Green for green – Green hydrogen tech startup HydGene Renewables has secured $6 mln in seed funding, in a round led by UK venture capital fund Agronomics and also included Australia’s Clean Energy Finance Corporation (CEFC), Understorey Ventures, and NOAB Ventures. HydGene was founded by bioengineers in 2020 and spun out of research that began at Macquarie University. Its biocatalyst technology process uses biomass waste to create a renewable, carbon-negative source of hydrogen. The startup plans to use the new funding to scale up production of its tech for pilot testing, hire more staff, and invest further in research and development. It is also working on developing a new biocatalyst for producing an ammonia-based fertiliser product. (SmartCompany)
AND FINALLY…
Clean sailing – Norwegian cruise and ferry company Hurtigruten has revealed plans for ‘Sea Zero’, a zero-emissions cruise ship designed to help reduce the industry’s environmental impact. The ship, planned to operate along the Norwegian coast by 2030, is a part of the company’s broader goal to transform its entire fleet into eco-friendly electric liners. The vessel will be 135 meters long, have 270 cabins, and also feature a significant cargo hold and car transport capabilities. It will incorporate innovative technologies, including retractable sails with solar panels, artificial intelligence manoeuvring, contra-rotating propellers, and retractable thrusters. The ship will be equipped with a 60 MWh battery pack and three retractable, autonomous wing rigs with solar panels and wind surfaces. An interactive mobile app will also allow guests to measure and manage their water and energy consumption. The project now enters a two-year phase of technology testing and development.
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