Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here

TOP STORY

Nations warn against CCS alibi for fossil fuel expansion

Almost 20 nations including EU members and vulnerable island nations warned on Friday that abatement technologies, such as carbon capture and storage or removal, must not be an excuse to perpetuate the use of fossil fuels.

VOLUNTARY

Tanzania carbon credit projects set for $20 bln investment boost

Tanzania’s burgeoning carbon credit industry is set to receive a substantial boost with investments over $20 billion expected from more than 20 companies from a series of countries.

PNG green groups say govt has breached its own rules on carbon market regulations

The Papua New Guinea government has completed its Climate Change Management Act (CCMA) without carrying out proper consultation as outlined in government guidelines from last year, according to a group of environmental NGOs.

Indian carbon credit originator EKI seeking to sack auditors after company’s accounting practices flagged

India-based carbon project developer and consultancy EKI Energy Services has decided to sever ties with its auditors after they expressed significant concerns about the company’s accounting practices.

Next court date set for Alberta offset verifier facing 25 criminal charges under climate regulations

An Alberta compliance offset verifier will soon have its next day in court for allegedly providing false or misleading environmental information and acting as a third-party assurance body without proper qualifications, a first for the Canadian judicial system.

Tropical forest conservation efforts economically important even if ultimately unsuccessful -study

Non-market factors have significantly influenced forest loss in Brazil, the Democratic Republic of Congo, and Indonesia between 2000 and 2019, according to a new study, which highlighted the economic importance of forest conservation efforts even if reduced deforestation is temporary.

AMERICAS

US EPA rejects nearly all outstanding Renewable Fuel Standard waivers

The US EPA on Friday denied almost all pending petitions for small refineries to receive compliance relief under the Renewable Fuel Standard (RFS), consistent with President Joe Biden’s administration’s past approach to the programme.

US Carbon Markets and LCFS Roundup for week ending July 14, 2023

A summary of legislative, regulatory, and policy action on carbon, clean fuel, and clean energy markets at the US federal and subnational levels this week, including the continued progression of climate disclosure and anti-greenwashing bills in California, and the introduction of bipartisan federal legislation to limit Renewable Fuel Standard (RFS) costs.

Producers draw on CCAs, financial players drop California net length but build RGGI holdings

Emitters raised California Carbon Allowances (CCAs) net holdings to a five-month high, while speculators reduced CCA net positions but lifted RGGA Allowance (RGA) net length to year-to-date highs, data from the US Commodity Futures Trading Commission (CFTC) showed Friday.

EMEA

Poland kicks off campaign of legal challenges against EU’s Fit for 55 climate package

Poland has lodged the first of a series of legal challenges against the EU’s Fit for 55 climate package, Climate Minister Anna Moskwa said late Friday, signalling a deepening row over the bloc’s environmental policies.

European utility EPH signals divestment plans for its big-emitting assets

Privately-held European power generator EPH has flagged plans to transfer its big-emitting lignite operations into a new sister company to enable its core business to wipe coal off its balance sheet by 2030 while the jettisoned facilities are expected to carry on longer.

EU fertiliser companies lose court appeal against exclusion from indirect ETS compensation

EU fertiliser companies lost their appeal in the bloc’s highest court this week against their exclusion from a list of sectors able to claim compensation for their indirect ETS costs.

Euro Markets: EUAs end week near flat after moving in narrowest range for 20 months

EUA prices ended the week virtually unchanged from last Friday’s settlement, as an early surge after one of the largest auction premiums this year gave way to an afternoon sell-off amid sharp reversals in natural gas, capping a week in which EUAs traded in their narrowest range in nearly two years.

CEO of major European carbon trading firm stepping aside

The CEO of one of the biggest European carbon trading firms is stepping aside.

ASIA PACIFIC

CN Markets: CEA price edges up volume slips, CCER trading slow despite policy updates

Allowance prices in China’s carbon market edged up over the past week amid a sharp decrease in trading volume, while liquidity worsened in the offset market despite the latest government consultation lifting spirits.

Australian asparagopsis study on wagyu cattle reports underwhelming methane reduction results

An industry-led Australian study trialling the use of asparagopsis to reduce enteric methane emissions from livestock has achieved much lower GHG reductions than had been previously been recorded.

Survey shows cement, steel are expected to be included in China ETS next year

Participants in China’s carbon markets are expecting to see the inclusion of the cement and steel sectors in the national emissions trading scheme (ETS) next year, a survey released on Friday showed.

BIODIVERSITY (FREE TO READ)

UN, Sweden launch platform to mobilise biodiversity finance in Arab region

The UN Economic and Social Commission for Western Asia (ESCWA) and the Swedish government have launched a platform designed to mobilise finance for biodiversity protection across the Arab region.

UK financials form group for nature recovery to drive finance

Some 20 financial institutions have launched a group that will work towards supporting the British government’s target of delivering finance for nature recovery in the UK as well as developing high-integrity domestic nature markets.

German environment ministry, KfW bank pledge €50 mln to support natural climate measures on company premises

Germany’s Federal Ministry for the Environment (BMUV) and state-owned bank KfW on Friday announced they will support businesses in their efforts to integrate natural climate protection measures within their premises.

—————————————————

Premium job listings

• Senior Engineer, Oil & Gas Sector with Carbon Market and Upstream Emission Reduction Project Expertise, ICA-Finance – Oslo
• Senior Program Officer, REDD+ Remote Sensing and GIS Analysis, Verra – Remote (Worldwide)
• Senior carbon/commodities trading analyst, RepuTex Energy – Melbourne
• Manager, Energy and Industrial Innovation, Verra – Remote (Worldwide)
• Senior Program Officer, Industrial Innovations, Verra – Remote (Worldwide)
• Senior Program Officer, VCS Methodologies, Verra – Remote (Worldwide)

Or click here to see all listings

—————————————————

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

Welcome to the club – Australia has announced it will join Germany’s G7 Climate Club, Prime Minister Anthony Albanese announced while in Europe this week. Germany Chancellor Olaf Scholz said in a joint press announcement that the two leaders wanted Australian and German companies to further expand their cooperation on the production and transportation of green hydrogen. He said he was “delighted” that Australia had agreed to join the club. Albanese said his government had set an ambition for Australia to become a renewable energy superpower, as well as a renewable energy export superpower. He added that Australia and Germany were also working to together to lay the foundations for critical minerals supply chains between the two countries.

Germany cajoles – Germany aims to put pressure on China to raise its climate targets, according to the government’s first strategy for dealing with the east Asian country. The paper, which was adopted by the cabinet following months of delays, calls China’s current plans – peak carbon emissions before 2030 and carbon neutrality before 2060 – “not sufficient for keeping to the 1.5C limit”, adding that Germany expects “the world’s second largest economy to contribute to climate action in accordance with its means and responsibility.” It also says that Germany is “committed to ensuring that China contributes to global loss and damage financing,” and lists industry decarbonisation and the phase-out of coal-fired power generation as priorities for cooperation between Europe’s largest economy and China. (Clean Energy Wire)

A credit to you – India plans to strike bilateral deals to sell green hydrogen at a G20 ministerial meeting in Goa next week. To make these more attractive, it plans to add carbon credit component to the deals, a power ministry official told Financial Express. “People will buy green hydrogen only when it is cheaper and has some additional benefits. They want carbon credits, and we will produce green hydrogen as well as carbon credits. We may sign some MoUs,” the official said. India will be holding bilateral meetings with eight countries/regions – Japan, South Korea, Singapore, Australia, USA, France, Germany, and the EU – during the July 19-20 G20 energy transition meeting. The discussions will centre around building up the framework in terms of common standards, regulations, certifications, and trading of carbon credits, another official said, adding that a broad framework will be discussed that will enable B2B interactions. India, under its G20 presidency, had identified six priority areas for the energy transitions working group: technology gaps, low-cost financing, energy security and diversified supply chains, energy efficiency, industrial low-carbon transitions and responsible consumption, fuels for the future, and universal access to clean energy and just, affordable, and inclusive energy transition pathways.

Go blue – The Inter-American Development Bank (IDB) is providing a $1.52 mln grant, funded by the UK Blue Carbon Fund, to Suriname to protect the Bigi Pan Multiple Use Management Area. The project, to be executed by the Anton de Kom University of Suriname, aims to restore 1,200 hectares of mangroves, protect another 2,200 hectares, and promote sustainable livelihoods through nature-based solutions and innovative strategies. The project also aims to strengthen institutional capacities in mangrove management and environmental awareness through collaboration with government agencies, civil society, and the private sector. A knowledge platform will be established to disseminate project results and foster local and governmental engagement. (Dagblad Suriname)

Bus fuss – EU officials are working on a plan that can help provide electric buses to Latin American nations in exchange for lithium supplies, as they seek to curtail the bloc’s reliance on China for the critical raw material. Citing anonymous sources, Bloomberg reports that the bloc’s executive arm is in talks with automakers and governments to create a private-sector consortium to supply e-buses. In return, the EU firms would gain access to lithium deposits in these resource-rich countries. While the whole arrangement could take years to be put in place, the demand for e-buses in the region is large enough to stoke interest among European auto makers. The initiative is part of a broader push among western economies to counter China, which has a stronghold over the green-energy supply chain. The plans may be outlined at next week’s Brussels summit of leaders from the EU, Latin American and Caribbean nations (CELAC), at which the European Investment Bank (EIB) said it will announce the signature of several loans to finance climate action projects in Argentina, Brazil, and Chile. All of the projects are part of the EU’s Global Gateway foreign development aid programme. The projects include financing the first-ever residential mortgage-based loan for efficient housing units outside the EU; supporting the renewable hydrogen industry; expanding, modernising and increasing the resilience of electricity transmission networks; supporting renewable energy, energy efficiency and bio economy projects; financing integrated waste management programmes; and installing solar photovoltaic plants in individual homes, small and medium-sized enterprises (SMEs) and local businesses.

ASIA PACIFIC

Verra or bust – Malaysia’s forest-covered Sarawak province is aiming to start trading its carbon credits next year, with Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg planning to work with voluntary standard Verra to gain better understanding of the international protocol if the federal government is too slow to update the country’s relevant legislation. According to Dayak Daily, Abang Johari said it is crucial for the Malaysian government to expedite the amendment process and update legislation in accordance with international protocols, and to designate carbon as a tradable commodity. “Without a comprehensive legislative framework aligning with international protocol, it will hinder Sarawak’s production and trading of carbon,” he said. If federal lawmakers fail to act promptly, Abang Johari said he will go to Verra to gather information pertaining to international protocol for carbon trading. “But of course, we must inform the federal government first,” he added. Apart from hydrogen and sustainable aviation fuel (SAF), Abang Johari said carbon trading will also become a new and valuable income earner for Bintulu, which is a coastal town on Borneo near the heart of the province’s forests. “Developing Bintulu beyond 2030, we want Bintulu to be an integral part of the green economy hub. This is the future of Bintulu and Sarawak,” the premier added.

AMERICAS

Reparations repudiation – US climate envoy John Kerry said his administration would “under no circumstances” pay into a UN climate change reparations fund for poorer countries feeling the worst effects of the warming planet. Kerry made the remarks at the House of Representatives foreign affairs oversight subcommittee, where the Republican chair of the committee was approving of the climate envoy’s answer. The UN’s loss and damage fund was established at COP27 in Sharm-el Sheik, Egypt in Nov. 2022, and seeks to provide money from wealthy countries who bear historical responsibility for climate change to more at-risk parts of the world. During COP27, Denmark, Belgium, Germany, Scotland, and the EU made small funding commitments. (CNBC)

Green grants – The US EPA is launching two grant competitions for a combined $20 bln, with most of the money allocated for investments in private sector green technology, a press release from the agency said Friday. The National Clean Investment Fund will award a sum of $14 bln to two or three organisations that finance companies pivoting to clean tech. The remaining $6 bln will be awarded by the Clean Communities Investment Accelerator to between two and seven organisations that fund non-profit groups working to bring sustainability measures in low-income communities.

Mangrove map – Brazilian oil and gas company Enauta and researchers from the State University of Rio de Janeiro (UERJ) concluded this month a survey on mapping the carbon capture potential of the mangrove forests in Rio de Janeiro, where the firm’s headquarters are located. According to the survey, the state’s mangroves prevent the release of 25 Mt of CO2 into the atmosphere, which, in monetary terms, it said would be equivalent to around R$500 million ($104.4 mln). For two years, the researchers analysed five coastal systems where the main mangrove forests in the state are located: Ilha Grande Bay, Sepetiba Bay, Guanabara Bay, Baixada de Jacarepagua, and Baixada Norte Fluminense. The study quantified the carbon associated with mangrove trees, including the roots and soil of the ecosystem. They identified a high carbon storage capacity by the mangroves, estimated to about half a tonne of carbon in an area equivalent to a football field. (UOL)

EMEA

H-for-heat – Germany wants to use hydrogen for decarbonising road transport and heating, in addition to industry, according to a highly anticipated revamp of the national hydrogen strategy leaked to business daily Handelsblatt. Ministries have agreed on a final draft, which is set to be approved this month by the cabinet, the article said. In the new strategy, the government raises the 2030 target for domestic electrolyser capacity for making green hydrogen to “at least” 10 GW from an earlier 5 GW, and plans an initial pipeline grid spanning 1,800 kilometres by 2027-28. (Clean Energy Wire)

H-not-for-heat – Controversial UK government aspirations to replace gas boilers in some homes with a hydrogen-based alternative are likely to be scrapped, energy minister Grant Shapps has indicated. Shapps said he believed hydrogen would form part of Britain’s overall energy mix but predicted it was “less likely” that the gas would be routinely piped into people’s homes, amid growing concerns about cost, safety and perpetuating a reliance on fossil fuels. Trials have been under way as part of a government move to phase out natural gas boilers by 2035 amid a broader effort to decarbonise domestic heating. But the plans have in some cases been described as unsafe and have met with opposition in areas that have been earmarked for pilot schemes. (The Guardian)

Source to sink – Finland made progress in reducing GHG emissions during 2022, but more needs to be done, according to an annual climate report by the Ministry of the Environment on Friday. The report concluded that in order to meet EU obligations as well as the national 2035 carbon neutrality target, increased efforts are required — especially in the land-use sector. Two years ago the land use sector actually became a source of emissions but last year the sector became a small net sink again. (YLE)

Aker+Aramco – Aker Carbon Capture and energy company Aramco have signed an MoU to examine opportunities for deploying CCUS and industrial modularisation in Saudi Arabia. The agreement, valid for two years, is expected to focus on reducing and removing carbon emissions through CCUS from industries and energy solutions. It aims to establish modular carbon capture plants and after-market services, and assess the potential for local supply chain and module fabrication development. The partnership supports Saudi Arabia’s Vision 2030 and its Net Zero 2060 goal, as well as the region’s ambition to reduce CO2 emissions by 670 million tonnes per year through the Middle East Green initiative.

AVIATION

TIMmy time – A new independent advisory committee has been established by the International Council on Clean Transportation (ICCT) and Google to oversee the Travel Impact Model (TIM), a methodology used to estimate flight emissions by Google Flights, Booking.com, Expedia, and other travel industry players. The committee is composed of representatives from academia, airlines, NGOs, and government agencies and is tasked with supervising updates to the TIM that reflect the latest scientific knowledge about flight emissions forecasting. ICCT will function as a technical secretariat for the committee, carrying out research on selected topics and commissioning studies as needed. The committee aims to make emissions estimates more accurate, precise, comprehensive, future-proof, transparent, and consistent. The improved TIM is expected to incorporate non-CO2 pollutants like contrails and consider sustainable aviation fuels and zero-emission planes. Members include sustainability or environment executives from American Airlines, EasyJet, and Lufthansa. (GreenAir)

SCIENCE & TECH

At the Kore – Kore Infrastructure has joined forces with the Tule River Economic Development Corporation to develop a modular facility in Porterville, California, that will convert forest biomass into carbon-negative biofuels. The project, backed by the California Department of Conservation, aims to mitigate wildfire risks and decarbonise transport by transforming dead, diseased, and dying trees into carbon-negative UltraGreen Hydrogen and biocarbon using Kore’s technology. The Department of Conservation has granted Kore a $500,000 award for the project under the Forest Biomass to Carbon-Negative Biofuels Pilot programme. The facility, expected to begin construction in early 2024 and to be operational by the second half of 2025, will process 48 tonnes per day of non-merchantable trees and produce 2 tonnes of fuel cell quality hydrogen and about 10 tonnes of biocarbon daily. (Bioenergy News)

Fire and Brimstone – Brimstone has announced a new method of ordinary Portland cement (OPC) with a negative carbon footprint, using carbon-free calcium silicate in place of limestone. The calcination also produces magnesium compounds, which naturally sequester further CO2 from the atmosphere. Brimstone will test the process at an upcoming pilot plant in Reno, Nevada, before moving to commercial-scale production. (Global Cement)

AND FINALLY…

Welcome to hell – A heatwave affecting nearly 115 mln people in the US is set to intensify and constitutes a serious, potentially deadly threat, especially across the Southwest and parts of the West – currently covered by an intense ‘heat dome’, Axios reports. Climate change has exacerbated this heatwave, making it more intense, longer-lasting, and more likely, experts say. Cities typically hot in the summer are facing record-breaking temperatures. For instance, Phoenix has experienced 14 consecutive days with temperatures reaching or exceeding 110F, threatening to break the all-time record of 18 days. The scope of the heat wave is rare, as is its persistence. The heat reaches from Florida to California and is poised to expand its grip to the Great Basin and the Pacific Northwest. The increased frequency of such heatwaves has prompted some cities to appoint chief heat officers to help deal with the situation, while other local governments show uncoordinated efforts, often siloed in different departments. Meanwhile in Europe, nine cities have issued red alerts as a heatwave – dubbed “Cerberus” after the three-headed dog of Greek mythology – has seen temperatures in some countries top 40C, which has led to numerous deaths. Temperatures on the continent are also expected to continue to intensify next week and could break the 48.8C European record. In Spain, the heatwave is driving drought – already impacted by low rainfall – with reservoir levels sitting at just 30% of their capacity in Catalonia for example, below the average of 46.5% for the whole of Spain, reports Bloomberg.

Got a tip?  How about some feedback?  Email us at news@carbon-pulse.com