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TOP STORY

ANALYSIS: UN stance on CER use leaves stakeholders puzzled over implications for voluntary carbon market

Experts have expressed uncertainty over the future use of Certified Emission Reductions (CERs) in the voluntary carbon market in the wake of a UN statement suggesting transactions of the Kyoto-era units will only be possible for a few more weeks.

AMERICAS

Brazilian president’s ETS proposal foresees auctions, UN carbon trading interaction

A cap-and-trade programme devised by Brazilian President Luiz Inacio Lula da Silva’s administration will feature design elements such as auctions and price stability mechanisms, as well as automatically allow UN offsetting methodologies to generate compliance credits under the regime, according to a draft proposal seen by Carbon Pulse.

Canadian industry, environmental groups call for immediate action on carbon contracts for difference programme

A number of Canadian organisations have urged Prime Minister Justin Trudeau’s government to develop a programme that guarantees revenues from carbon pricing as soon as possible to accelerate the country’s decarbonisation and global competitiveness for investment.

LCFS Market: California credits rebound past $80 as sellers exit ahead of workshop

California Low Carbon Fuel Standard (LCFS) credit values increased to nearly two-month highs in recent days as sellers disappeared and market participants prepared for the release of updated modelling inputs that will be used to evaluate strengthening the programme in a forthcoming rulemaking.

VOLUNTARY

Retirement level of carbon credits forecast to hit record high by year-end -report

Retirement of carbon credits from voluntary standards will hit a record high this year if past trends hold, according to forecast from an advisory group that also noted that the surplus of available credits will continue to build.

Canada-based voluntary carbon financier expands to develop nature-based credits

A Toronto-headquartered voluntary carbon investor will develop its first nature-based removal credits through a reforestation project in India, the company announced Tuesday.

ASIA PACIFIC

NZ govt teams up with BlackRock to launch NZ$2 bln Net Zero Fund

The New Zealand government is partnering with BlackRock to launch a new NZ$2 billion ($1.2 bln) fund designed to help the country achieve 100% renewable electricity by 2030, it announced Tuesday.

Australia out of step with global methane mitigation actions, report highlights

Australia is lagging behind on regulation to control methane emissions from the fossil fuel sector, according to a report released Tuesday, as a conservation group has released footage that appears to show methane leaks across dozens of oil and gas facilities across the country.

South Korea should consider renewable progress when drafting carbon market rules, think-tank says

South Korea should draw up regulations for its emissions trading scheme that support progress towards reaching its 2030 renewable energy target, according to an analysis recently released by a state-run think tank.

Consortium launches initiative to reduce methane emissions from rice cultivation in India

Three major corporations have partnered to reduce methane emissions from rice cultivation in India, aiming to cover around 25,000 hectares of land from this year.

EMEA

Euro Markets: EUAs move higher as market anticipates auction pause, bullish position data

European carbon prices spent the first half of Tuesday trading around a key technical and psychological level, before strengthening in the afternoon as traders anticipated the lack of an EUA auction on Wednesday, as well as updated position data that many expected to show speculative traders had trimmed long positions.

INTERNATIONAL

EU-funded initiative issues call for Global South partners to implement Article 6 carbon markets

Three countries from the Global South will be chosen to take part and receive support in developing tools and guidance for integrating Article 6 emission trade approaches into their national climate strategies, according to a funding call issued on Monday.

BIODIVERSITY (FREE TO READ)

UK outfit releases global framework for measuring, crediting nature investments

UK-based CreditNature has released its ecosystem integrity-based framework that has been designed to underpin the issuances of nature credits and other financial instruments.

L’Oreal vows to compensate for full plastic footprint in the Philippines

Cosmetics firm L’Oreal has partnered with the Plastic Credit Exchange (PCX) to offset its entire annual plastic footprint in the Philippines, starting from this year.

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CONFERENCES

Argus North American Biofuels, LCFS & Carbon Markets Summit – Sep. 11-13, Monterey, CA: Join 600+ key government representatives and industry stakeholders from across the entire biofuels value chain and carbon markets sector for three days of networking and knowledge exchange. Hear from leading policy makers from California, Oregon, Washington, Canada’s ECCC, Alberta, and British Columbia and industry experts from LanzaJet, BMW of North America, Morgan Stanley, Chevron, Southwest, Mercuria, Radicle, Phillips 66 and more. Take advantage of this opportunity to gather the latest policy and market insights and reconnect with industry peers. Learn more here.

North America Climate Summit – Sep. 19-21, New York City: The International Emissions Trading Association (IETA) looks forward to welcoming delegates to our flagship North America Climate Summit (NACS) 2023, an official accredited event of New York Climate Week 2023 and the UN General Assembly 2023. The Summit is the ideal forum to take stock of the world’s evolving net zero landscape and clean growth opportunities, and a zoom into North America. Hear from policymakers, business leaders and innovators who are leading the pack in building, scaling and collaborating on carbon pricing and markets for net zero. Register 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

EMEA

Name a figure – Erguvan, a climate-fintech startup based in Istanbul has raised an undisclosed figure in a seed round via Dubai’s government-owned bank, ENBD, and Deniz Ventures, and now claims a valuation of $7.33 mln, Tech EU reports. The investment marks the first deployment for ENBD’s of a $100 mln venture fund announced last year. Erguvan provides a B2B marketplace for environmental commodities including carbon credits, as well as API carbon accounting software, to financial institutions and corporates. The fresh investment will pave the way for international expansion.

Bad numbers – Demand for heat pumps has slumped in Germany as a fierce debate about government plans to decarbonise the heating sector unnerved many citizens, Clean Energy Wire reports. The number of subsidy applications halved in the first half of the year, according to an article in German news site Spiegel Online. The country’s Federal Office for Economic Affairs and Export Control (BAFA) received 48,804 applications for heat pump subsidies, compared to 97,766 in the same period last year.

Sun in Romania – Romania will tender 1 GW in onshore wind power and 1 GW in photovoltaic capacity as part of a 10 GW auction plan by 2030, the European Bank for Reconstruction and Development said. The renewable energy will be supported for 15 years. The EBRD also participated in developing auction mechanisms in the Western Balkans.

Finnish forests – The European Commission approved on Tuesday a €350 mln Finnish scheme to support sustainable forest management. Running until 31 December 2029, the aid will take the form of direct grants to private forest owners. It will support: remedial fertilisation, peatland forest management plans, forest nature management plans, water protection measures, including road embankment construction, forest road construction, prescribed burning, and the compensation for income losses of private forest owners resulting from the implementation of measures to preserve biodiversity in forests.  The maximum amount of aid per beneficiary is €100,000 per project. For road embankment construction and compensation for income losses specifically, the maximum aid amount is €300,000 per beneficiary. A spokesperson told Carbon Pulse that the scheme does not concern carbon credits. Read more on the new forests regulation in our story.

More gas – Also on Tuesday, the EU executive announced that a €16 mln Bulgarian measure will support the expansion of Bulgartranstaz’s facility in Chiren, the country’s only natural gas storage location. In total, Bulgartranstaz will invest €285 mln for increasing its capacity from 550 mln to 1 bln cubic metres. A nine-year €16 mln public guarantee on the loan to finance the measure should ensure security of gas supply, enhance competition in the gas market, also thanks to a greater integration of the plant in the network, and encourage gas trade in the region. The Chiren storage expansion is a project of common interest (PCI), aiming to complete the European internal energy market.

ASIA PACIFIC

Done deal — Woodside Energy announced Tuesday it had sold a 10% stake of its Scarborough joint venture for $500 mln to Japan LNG. Completion of the transaction is subject to approval of Australia’s Foreign Investment Review Board, the Western Australian government and the National Offshore Petroleum Titles Administrator. The transaction will  be backdated to Jan. 2022 and is expected to be completed in the first quarter of 2024, it said. The two companies have also entered into a non-binding HoA for the sale and purchase of 12 LNG cargoes per year for 10 years starting in 2026, the same time as the Scarborough project is scheduled to begin production. Woodside also said it had entered into a non-binding agreement to collaborate with Sumitomo Corporation and Sojitz Corp on global new energy opportunities which could include ammonia, hydrogen, CCS and carbon management technology.

Getting the cash together – Adani Energy Solution (AESL), the transmission and distribution business arm of the Adani Group, said that it has achieved financial closure for its $1-bln green high voltage direct current (HVDC) link project, which will increase renewable energy supply to Mumbai supporting its rising electricity demand, according to local media reports. Mumbai’s current peak demand stands at 4,000 MW and is expected to reach 5,000 MW by FY 2025. The 80 km green HVDC link will bolster grid stability by establishing an interface with both state and national grids and will bulk inject 1,000 MW of renewable power into the city. The construction of the link will begin in Oct. 2023. Anil Sardana, managing director of AESL, said that this project will help accelerate Mumbai’s decarbonisation and its net-zero journey, the Economic Times reported on Tuesday.

Granted – The Sarawak state government in Malaysia has granted two companies licences to host carbon trading projects on its territory, Malay Mail reported Tuesday. One went to Petroleum Sarawak (Petros), which earlier this year got a CCUS licence and now plans to go to Norway to study carbon storage infrastructure before launching a project at home. The other was SaraCarbon, a subsidiary of timber company Samling Group. It will now conduct a feasibility study on launching a nature-based carbon offset project in one of its tree plantation areas in Marudi along with undisclosed Singaporean business partners.

Representation — PNG Northern Province Governor Gary Juffa has raised concerns over foreigners representing the country at global climate talks, the National Newspaper reports. Juffa said at the recent UNFCCC talks in Bonn, Germany, half of the PNG delegation consisted of foreigners working with or for the Conservation for Rainforest Nations. Juffa went on to question why PNG could not send its own people to attend important climate meetings, describing being spoken for by international representatives as “shameful”.

Carbon-free eggs – Charoen Pokphand Foods (CP Foods), an agro-industrial and food conglomerate, has introduced Asia’s first carbon-neutral cage-free eggs, which have received certification from the Thailand Greenhouse Gas Management Organization (TGO), it announced Tuesday. The group’s egg business has implemented several projects to minimise environmental impacts, including the installation of automated egg conveyors and the adoption of alternative energy sources such as solar panels and biogas systems. CP Foods said it is actively pursuing innovative solutions to reduce GHG emissions from egg production and aims to further develop cage-free layer farms that operate as 100% renewable farms.

CCUS research – China’s biggest listed steelmaker, Baoshan Iron & Steel Co, has agreed to conduct research on carbon capture, utilisation, and storage (CCUS) with state oil major Sinopec, energy giant Shell and German chemical firm BASF, following a CCUS agreement signed last year, Reuters reports. The four companies will jointly assess the feasibility of building China’s first open 10 mln metric ton CCUS project in eastern China, a region contributing to 30% of the country’s total carbon emissions.

Greener shipping – Japanese trading firm Marubeni has signed a Letter of Intent (LoI) for the development of a prototype version of Blue Visby Solution, in order to reduce inefficient fuel consumption, it announced Tuesday. Marubeni last year joined the Blue Visby Consortium to develop an integrated system that can notify ships of the optimal date and time to make arrival at their destination, and the consortium has conducted verification for the implementation of the system using a fleet of gas and chemical tankers. The verification results showed that CO2 emissions could be reduced by an average of 15% over a total of 625 voyages of 68 vessels operated and chartered by Marubeni, the statement said.

AMERICAS

Canadian electricity – Canada’s Minister of Energy and Natural Resources, Jonathan Wilkinson, on Tuesday released the federal government’s vision for transforming the country’s electricity sector in pursuit of grid decarbonisation by 2035. Titled “Powering Canada Forward”, the document outlines the government’s policy measures thus far and highlights upcoming engagement initiatives in advance of forthcoming Clean Energy Regulations to be published by Environment and Climate Change Canada. As part of the white paper, the government outlined that provinces will need to be moving toward non-emitting power grids to access clean electricity investment tax credits. Ottawa introduced a refundable 15% clean electricity investment tax credit in its 2023 budget in March, available to both the private sector and provincial utilities. But a number of provinces including Alberta and Saskatchewan, whose conservative premiers frequently clash with the federal government on energy and climate policy, say the target is unrealistic and are aiming for 2050 instead. (Reuters)

California hydrogen – California Governor Gavin Newsom (D) on Tuesday announced he has directed the Governor’s Office of Business and Economic Development (GO-Biz) to develop California’s Hydrogen Market Development Strategy, employing an all-of-government approach to building up California’s clean, renewable hydrogen market. In a press release, the governor’s office said the strategy will closely resemble the Zero-Emission Vehicle Market Development Strategy to help California collectively move forward and deliver zero-emission benefits to all residents of the state.

California RNG – Southern California Gas Company (SoCalGas), the primary provider of natural gas to Southern California, announced on Tuesday it is looking to pilot a renewable natural gas project through the use of organic waste such as chipped wood and nut shells. In a press release, the utility company said has filed an application with the California Public Utilities Commission which, If approved, would be the largest RNG project in California. 

Fuel alliances –US oil refiner Phillips 66 and grain trader Archer-Daniels-Midland are in talks to produce lower-carbon jet fuel. Discussions are currently centred around bolstering ADM’s dry corn mill operations into a venture that would convert grain-based alcohol to jet fuel. While the oil and corn-based ethanol industries have historically been at odds, this initiative sees the two come together to grow in the renewable fuels space. (Reuters) 

VOLUNTARY

Digital get down – Carbon credit standard manager and developer Verra on Tuesday launched the first component of its digitalisation initiative. Housed within the new Verra Project Hub, the Project Tracker will provide stakeholders who have projects listed on the Verra registry with more visibility into the status of their projects. The Project Tracker displays the status of each project in a bar diagram, giving a visual view as the project progresses from its initial listing to registration, validation, and verification. The application is linked to Verra’s customer relationship management platform, enabling automatic data synchronisation. The Project Tracker is the first functionality of the Verra Project Hub to be rolled out. As the platform evolves, the hub’s features will expand to facilitate the online submission of new projects for review, a digital assessment of a project’s non-permanence risk, and direct interaction with project auditors.

SCIENCE & TECH

Green scepticism – A new paper published in Nature Sustainability finds that despite strong promotion of green growth by policymakers and international institution, there is a growing amount of criticism regarding the compatibility of continued economic growth and sustainability goals. The report found that based on its global survey of 789 climate policy researchers, scepticism in high-income countries on the notion that as national income rises environmental goals can still be achieved is widespread. The report said that the findings “underscore the importance of considering alternative post-growth perspectives.”

AND FINALLY…

The power of fandom – A group of K-pop fans recently organised a climate protest at Maengbang Beach, a landmark made famous by South Korean boy band BTS but now under threat of a coal expansion project, Bloomberg reports. A gigantic coal-fired power plant, only six miles away from the beach, is under construction and could be fired up as soon as October, according to the report. Kpop4planet, created by K-pop fans concerned about the climate crisis, has launched the “Save the Butter Beach” campaign with non profit Korea Beyond Coal to stop the construction of the new facility, which could add more than 13 mln tonnes of GHG emissions every year. The protest group is also urging Korean automaker Hyundai to withdraw from mineral resources company Adaro’s coal-powered aluminium project in Indonesia.

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