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TOP STORY

Negotiators craft IMO deal for scaled-up shipping emissions targets

Negotiators at the UN’s International Maritime Organisation are honing in on a revised emissions strategy for shipping, with officials finalising draft text on Thursday that is more ambitious than the IMO’s 2018 version but still adrift from aligning the sector with Paris Agreement climate objectives.

EMEA

Experts call for diverse EU carbon removals funding ahead of ETS inclusion

The EU will require several forms of finance to achieve its 2030 carbon removals target but there is potential for the ETS price alone to be sufficient to scale the sector after 2030, a conference heard on Thursday.

EU to announce Innovation Fund and MSR-linked auction frontloading at same time -official

The European Commission will publish the bloc’s revised EU ETS auctioning regulation at the same time as outlining when additional REPowerEU volumes from the MSR will come to market, a senior official told a conference on Thursday.

EU needs extra €620 bln a year to fund climate transition, as inflation blows out budget

The EU will need additional investments of over €620 billion annually to meet its climate and energy security objectives, the European Commission said in a report on Thursday, flagging that the private sector will need to meet the bulk of the funding and stressing the importance of ETS revenues.

Euro Markets: EUAs consolidate weekly losses on low volume as participants point to bearish near-term outlook

European carbon prices traded flat during a quiet session on Thursday, as bearish technical indicators and slumping gas markets kept EUAs on course for weekly losses, while UK Allowances continued their fall in the wake of key reform documentation published earlier this week.

Portugal considers linking of domestic voluntary market with that of Spain

Portugal is considering linking its yet-to-be-launched domestic voluntary carbon market (VCM) with that of Spain for liquidity purposes, a government official told a conference on Thursday.

Zambia govt to take share of carbon credit revenues -media

Zambia is following in the footsteps of other African nations and will regulate its carbon market and take a share of revenues.

South Pole takes stake in renewable energy certificate platform

South Pole has taken a stake in a start-up tracking and trading platform that specialises in the procurement of hourly matched renewable energy certificates.

VOLUNTARY

Gold Standard releases new rice cultivation methodology, adapted from controversial UN protocol

Carbon credit certifier Gold Standard has released a new methodology for projects that reduce methane emissions from rice cultivation, five months after a popular UN protocol was embroiled in controversy.

Record number of firms disclose forest-related risk but still leave $80 bln on the line, analysis suggests

More than 1000 companies disclosed forest-related risks through a voluntary platform last year in a sign of increasing corporate awareness, but analysis suggests that firms are not mitigating them effectively and could suffer losses of nearly $80 billion as a result.

Corporations offering good prices and extended contracts for removal credits, says Dutch developer

Large corporations with net zero pledges are offering better terms and extended contracts for buying carbon credits, and are increasingly seeking removal credits, a Dutch project developer announced in a bullish update on Thursday.

AMERICAS

WCI Markets: CCAs climb slightly on bullish outlook, WCAs steady as consignment enters future auction

California Carbon Allowance (CCA) prices climbed this week on very thin volume in a holiday-shortened period, while Washington Carbon Allowance (WCA) values remained relatively flat as consignment permits were announced for the Q3 auction.

Analysts raise 2023 WCI offset demand forecasts, expect supply catch-up in 2024

WCI compliance offset demand will accelerate in 2023 amid higher emissions and alongside a significant increase in voluntary market interest, as credit supply will pick up pace next year ahead of the linked cap-and-trade programme’s full compliance deadline and as usage quotas are expanded in the California’s subsequent true-up period, an advisory firm said in a report published Thursday.

Advocates say New York cap-and-invest programme should scrap ceiling price, consign all free allowances

New York regulators should abandon a price ceiling in crafting their economy-wide cap-and-invest rule, while also implementing a consignment requirement for all freely distributed permits, programme advocates said Thursday.

LCFS Markets: California prices reach 3-mth bottom as quarterly credits hit accounts, Oregon and Canada values rise

California Low Carbon Fuel Standard (LCFS) values continued to sink this week as participants were reported to have received their latest batch of quarterly credits, while clean fuel standard prices in Oregon and the new Canadian programme have climbed recently.

ASIA PACIFIC

AU Market: ACCU price falls to 10-month low on large supply overhang

The massive injection of Australian Carbon Credit Units (ACCUs) into the market in recent weeks has caused the price to slip to its lowest levels year-to-date, according to analysts.

Japanese firms launch blockchain initiative to simplify J-Credit process

Two Tokyo-listed companies have launched an initiative to simplify the lengthy process of creating government-issued J-Credits while facilitating carbon credit trading through the use of IoT and blockchain technology, as the country is seeking ways to boost the supply of domestic offsets.

Singapore asset manager secures green loan, carbon credits from OCBC bank

A Singaporean asset manager has secured a $300 million green loan that also includes carbon credits from Overseas Chinese Banking Corporation (OCBC) that will assist a shopping mall become carbon neutral, the company announced Thursday.

INTERNATIONAL

Japan signs Article 6 carbon trading partnership with Kyrgyzstan

Japan on Thursday announced it has signed a Memorandum of Understanding (MoU) with Kyrgyzstan, making the Central Asian nation its 27th partner country under the Joint Crediting Mechanism (JCM).

Bezos fund grants $12 mln to forest carbon monitoring initiative

The Smithsonian Tropical Research Institute (STRI) has received a $12 million grant from the Bezos Earth Fund to support an international system to independently ensure the accuracy of satellite monitoring of forest biomass.

BIODIVERSITY (FREE TO READ)

Verra ready to pilot biodiversity methodology

Carbon standard Verra on Wednesday issued a call for projects to pilot its long-awaited SD VISta Nature Framework and biodiversity methodology ahead of a public consultation process expected to launch in September.

MPAs are increasing in Cambodia, but exhaustive list of issues must be addressed, World Bank reports says

Marine Protected Areas (MPAs) are receiving increasing attention in Cambodia to safeguard marine biodiversity, according to a new World Bank report, however wider governance, corruption, and capacity building issues must be addressed to begin adequately protect the country’s blue economy

Biodiversity Pulse Weekly: Thursday July 6, 2023

A weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).

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CONFERENCES

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

Living dangerously – Cutting oil and gas production would be “dangerous and irresponsible”, the boss of energy giant Shell has told the BBC. Wael Sawan insisted that the world still needs oil and gas as moves to renewable energy were not happening fast enough to replace it. He warned increased demand from China and a cold winter in Europe could push energy prices and bills higher again. Sawan angered climate scientists who said Shell’s plan to continue current oil production until 2030 was wrong.

Nickel and many dimes – Global decarbonisation plans could be delayed by a shortage of minerals and metals, warns consultants McKinsey after analysis found there needs to be $4 trillion of investment in mining, refining, and smelting by 2030 for current decarbonization trajectories. Labour capacity may also need to increase by up to 600,000 specialised mining professionals, and an additional 200-500 GW of energy to come online by 2030 to power the investment in production. The report, called Implications for global supply chains, claims materials like nickel are expected to experience modest shortages of approximately 10-20%, while dysprosium, which is a highly magnetic material used in most electric motors, could see shortages of up to 70%. This could lead to price spikes and volatility across the materials supply chain – slowing down adoption rates as customers would be unable to shift to lower-carbon alternatives. “This will require mining for materials to exceed beyond historical growth rates, while at the same time doubling down on exploration to ensure further scale up of supply beyond 2030. This could mean investment increasing by about $300 bln to $400 bln per year to meet demand,” said Michel Van Hoey, senior partner at McKinsey.

EMEA

Gas blueprint – The EU’s joint gas buyers’ club is attracting increasing demand as the region prepares for the new heating season and should provide a blueprint for how the region will secure the raw materials needed for the green transition, according to the Commission. The joint purchase facility – which emerged as an emergency measure during the energy crisis last year and matches companies looking to buy gas with international sellers – received demand for around 16 bcm for its second tender, the Commission told Bloomberg. The EU had set a goal of aggregating enough demand to fill 15% of its gas storage sites across the bloc, equivalent to around 13.5 bcm. Those are already nearly 80% full, while benchmark gas prices have moderated considerably since last year.

ASIA PACIFIC

Give it a try – Japan’s J-Power and IINO Lines have agreed to install the world’s first rotor sail on a coal carrier, and the installation of such equipment, manufactured by Finland-based Norsepower, will take place in Q3 2024, according to a joint statement published Thursday. As these rotating sails use the wind to generate powerful thrust, they can help reduce fuel consumption and CO2 emissions by roughly 6-10% in combination with a navigation optimisation system, the companies said.

Washed away – More than 400,000 homes around New Zealand are at risk of flooding, according to new research, NewsHub reports. The report by NIWA and the University of Auckland found 441,384 residential buildings were in flood-prone areas, with a hefty estimated replacement value of NZ$218 billion ($134 bln) – 12% of NZ’s housing value. The report found Auckland and Canterbury had the highest flood hazard, accounting for about half of the buildings. Wellington, Waikato and Bay of Plenty also had many buildings affected. Report author Emily Lane said the actual figures would be higher, given that the report only looked at known flood hazard areas that had already been mapped.

New assessment – Commodities pricing agency Platts is to launch low-carbon physical ammonia assessments for Japan and South Korea (the Japan & Korea Ammonia Price, or JKAP) in early Q3 2023, the first of its kind in the world, according to S&P Global. JKAP assessments will be for low-carbon physical ammonia cargoes of 10,000 mt delivered into the two East Asian countries on a CFR basis for a 1-6 week forward period, said Alan Hayes, head of energy transition pricing at S&P Global. “Two key factors — we will have a threshold for a carbon intensity, and any product that has a different carbon intensity we will use a carbon escalator to turn that value to our threshold,” Hayes said.

AMERICAS

Wicked reductions – Cambridge, Massachusetts has become the first US city to require non-residential buildings to cut their GHG emissions. Cambridge is mandating that buildings larger than 100,000 square feet achieve net zero by 2035, while mid-sized buildings have until 2050. The city’s Building Energy Use Disclosure Ordinance, or BEUDO, is being amended to meet these targets, with an intent to slash emissions by roughly 50% from current levels by 2030 and as much as 70% by 2035. (Utility Dive)

Sinclair, don’t care – Sinclair Wyoming Refinery Company’s dispute over the US EPA’s refusal to return credits used for compliance with the Renewable Fuel Standard was dismissed by the Tenth Circuit for lack of jurisdiction. The US Court of Appeals for the Tenth Circuit said Wednesday that the email Sinclair referenced from Director of the EPA Fuel Compliance Center John Weihrauch denying the company’s request didn’t meet the requirements of a final agency action. The Clean Air Act and Administrative Procedure Act – which Sinclair filed its petition under in May 2022 – gives circuit courts the ability to review only final agency actions. (Bloomberg Law)

VOLUNTARY

CCS buddies – Fluor Corporation has signed an MoU with CO2 mineral storage operator Carbfix, according to Benzinga. The financial terms were not disclosed. The parties will pursue integrated CCS solutions, looking to minimise the impacts of climate change by helping to decarbonise hard-to-abate industries such as steel, aluminum and cement. The MOU will enable the parties to pursue CO2 removal projects such as DAC and BECCS. Fluor will provide its proprietary Econamine FG Plus carbon capture technology and its engineering, procurement, and construction experience. Carbfix’s technology dissolves CO2 in water and injects it into porous basaltic rock formations, where natural processes cause the CO2 to form stable carbonate minerals within two years.

AVIATION

What gets a methodology gets managed – Airline lobby IATA has released a methodology to track “industry-level progress” towards achieving net zero carbon emissions by 2050, with plans to publish an annual report from Q4 2024. The Net Zero Tracking Methodology and related reporting process were developed “with industry experts” and outlines key metrics to track the evolution of carbon emissions intensity while accounting for changes in traffic volumes and available capacity. It has also identified three key emissions and reduction sources: convention jet fuel and related emissions, reductions from the use of sustainable aviation fuel together with carbon offsets and carbon capture, and emissions related to future power sources such as electric and hydrogen-powered aircraft. IATA’s 300-plus member airlines in 2021 approved a resolution to achieve net zero carbon emissions by 2050 and the organisation said the tracking methodology has since been developed to establish a “transparent framework” for accurate reporting and to monitor progress at an industry level. (BTN Europe)

AND FINALLY…

Hy & die – Researchers from Britain’s University of Brighton are supporting the development of the world’s first hydrogen-powered crematorium in Worthing, West Sussex. This initiative, funded by the UK Department for Energy Security and Net Zero, is part of a broader plan to make Adur & Worthing Council carbon neutral by 2030. DFW Europe, a cremator manufacturer, will test hydrogen technology in the Netherlands this summer, and if successful, it will be implemented at Worthing Crematorium in spring 2024. The new system aims to significantly cut carbon emissions without negatively affecting air quality. As cremation is currently a natural gas-intensive process, the shift to green hydrogen, which doesn’t emit CO2 when burnt, will help reduce the crematorium’s large carbon footprint. Brighton is also aiding other hydrogen-based initiatives, including a pilot to create the world’s first clay bricks powered entirely by green hydrogen energy.

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