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TOP STORY

Mexico’s Colima state announces CO2 tax, as Tamaulipas prepares to reinstate its carbon levy

The small Mexican state of Colima is working on quickly rolling out a carbon tax, while the Tamaulipas government is planning to soon reinstate its own CO2 levy that will have stronger legal backing, a conference heard Tuesday.

EMEA

FEATURE: Occupy movement – UK strives to unlock tenanted land for nature-based revenue generation

Efforts by the UK government and industry to incentivise more tenants to get involved with nature-based, revenue-generating schemes will be key to enabling environmental uplift on about a third of the nation’s farmed land, but doing so will require structural changes to tenants’ ties that often go back generations.

Euro Markets: EUAs set early 2-week high but slip back despite strong gains in gas

European carbon allowance prices set a new two-week high early on Tuesday before falling back in thin trading as much of Europe observed a public holiday and traders awaited new Commitment of Traders data, while energy prices forged higher amid rising temperatures and concerns over LNG supplies.

AMERICAS

PREVIEW: WCI Q3 auction settlement expectations hover around front-month CCAs, setting new record

Most traders expect the California-Quebec current vintage carbon auction on Wednesday to clear around front-month California Carbon Allowance (CCA) prices in the secondary market, which market participants view would result in a new record-high sale clearing price for the WCI market.

California kicks off public engagement for CCUS regulation, announces timeline for framework development

The California government on Tuesday provided an overview and timeline for developing its regulatory framework for carbon capture, utilisation, and storage, with the state facing strong support from industry and heavy pushback from environmental justice organisations.

Oil company Occidental buys direct air capture firm Carbon Engineering for $1.1 bln

Houston-based oil and gas firm Occidental has purchased the Canadian direct air capture (DAC) company Carbon Engineering through a subsidiary for $1.1 billion, the entities announced Tuesday.

ASIA PACIFIC

Australia to launch CBAM review

Australia has laid out the next steps in its process of deciding whether or not to implement a carbon border adjustment mechanism (CBAM) as part of its efforts to combat carbon leakage.

China thermal power growth continues to outpace total power output, economic pessimism persists

Growth in China’s thermal power generation continued to outpace the growth of total power output in July amid continued coal expansion, despite deteriorating signs of economic recovery, government data showed Tuesday.

Korean shipping firms may face $3 bln cost burden under carbon pricing schemes -research

Shipping companies in South Korea may have to bear additional costs of up to 4.9 trillion won ($3.6 bln) if international carbon pricing schemes for the shipping sector are implemented, a report has found.

INTERNATIONAL

US-led ETA carbon market concept for ending coal could backfire and cause a massive CO2 increase, warns think-tank

The US-led Energy Transition Accelerator (ETA) jurisdictional carbon crediting mechanism to phase out coal globally could backfire and cause a staggering 22 billion tonne increase of CO2 against a baseline case of no intervention, a UK think-tank has warned.

VOLUNTARY

Carbon investor’s net-settlement less than $1 per credit from REDD+ project sold in Q2

Tens of thousands of credits from a Brazilian REDD+ projects were sold by a Toronto-headquartered voluntary carbon market financier for a net-settlement of less than $1 per unit during this year’s second quarter, an investor call heard Tuesday.

SHIPPING

Biofuel test exceeds new shipping emissions reduction standards by over 20%

A biofuel in place of traditional shipping oil has cut emissions by 83% as part of an $18 million trial to abate the shipping sector’s carbon footprint.

BIODIVERSITY (FREE TO READ)

Gabon seals first debt-for-nature swap on mainland Africa, focus on oceans

Gabon’s national debt has been restructured under a ‘Blue Bond’ in the world’s second-largest debt-for-nature swap.

UK land management firm to develop biodiversity uplift fund

Land management firm Restore has initiated discussions with investors to set up a fund to secure a 40,000-hectare biodiversity uplift across the UK.

Timber and pulp companies unprepared for EU-deforestation legislation, study suggests

Timber and pulp countries have not made sufficient progress towards complying with an upcoming EU law that obliges companies to prove products sold in the 27-nation bloc have not led to deforestation, according to a London-based initiative.

State-owned insurer launches China’s first biodiversity insurance policy

A state-owned insurance major in China has launched the country’s first forest biodiversity insurance that provides compensation for environmental damage, targeting a region in Zhejiang province’s Ningbo city.

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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

Solar shift – Germany is to adopt a new draft law this Wednesday (Aug. 16) making it easier to install solar panels on residential buildings and agricultural land. The proposed law is intended to simplify the process for property owners and renters to install solar devices on balconies, roofs, terrasses and facades by reducing the amount of bureaucracy involved in application procedures. Solar farm build on agricultural land is also being encouraged by increasing the remuneration for generating solar energy as part of the law. (Clean Energy Wire).

ASIA PACIFIC

Thai taxes – Thailand has released further details of its plans to introduce a carbon tax, with the remit to include carbon emissions from oil refineries and EV batteries to address future EV waste disposal issues. Carbon Pulse previously reported that the tax is expected to cover energy (electricity), transport, and industry, with the aim to reduce GHG emissions by as much as 30%, though details on when it will be implemented are yet to be determined. Thailand’s Excise Departments aims for the carbon tax to promote ESG goals and to strengthen the country’s position as carbon pricing measures unfold around the world, such as the EU’s CBAM. (The Star)

Laggards – Australia’s largest banks have had their progress in achieving net zero emissions assessed in a first-of-its-kind report, Energy Magazine reports. The report, by the Australian Conservation Foundation, found that while all big banks have committed to net zero, significant gaps remain between their headline commitments and the policies and practices to get there. Commonwealth Bank of Australia scored the highest ranking 62 out of 100, followed by NAB at 55, Westpac (47), Macquarie (46), and ANZ (35). Many of the banks’ policies on fossil fuel lending exclude most of the ways the banks raise finance for the coal, gas and oil sectors, leaving loopholes to continue financing projects, the report said. Macquarie is the only bank to restrict lending to companies building new or expanded coal projects. CBA is the only bank to prohibit direct lending to new oil and gas projects. None of the banks have a policy to restrict lending to companies building new oil or gas. ANZ has not disclosed any analysis to determine how the bank will be affected by the impacts of climate change and the transition to net zero.

AMERICAS

Gas guzzler – According to Statistics Canada, the introduction of Canada’s federal carbon tax, alongside higher wholesale prices, resulted in a 14% rise in the price of gasoline in July compared with June in Nova Scotia. Relative to the rest of the country, consumers in the Maritime province saw the fastest monthly pace in rise of gas prices. 

Costa Rica reductions – Two Indigenous territories in Costa Rica will receive ₡325.2 mln ($0.6 mln) as a product of forest emissions reductions from 2018-19. The territories of Talamanca Cabecar and Ujarras have signed the Contract for the Reduction of Forest Emissions (CREF), a governmental financial instrument which pays for voluntary forest protection. The funding will be distributed as outlined in each territory’s Territorial Forest Environmental Plan, a requirement for participating in the CREF. 

Greener logistics – Walmart Chile is stepping into the use of green hydrogen to power its distribution centres, with the opening last week of a green hydrogen plant at Walmart’s Quilicura Distribution Centre in Santiago, Chile. Developed in partnership with Engie, the plant will allow the distribution centre to replace the lead-acid batteries of 200 forklift cranes with hydrogen energy cells, cutting 250 tonnes of toxic waste per year. The 15-year project will avoid the release of 17,100 tonnes of CO2 throughout its lifetime, the equivalent of planting 34,200 trees.

INVESTMENT

BP’s bet – BP Ventures, the venture capital arm of the British energy giant, has invested in a startup developing technology to significantly reduce the production costs of zero-carbon hydrogen.US-based Advanced Ionics has developed water vapour-based electrolysers for heavy industry that sharply reduce the cost of electricity for the electrolysis process, which accounts for more than 70% of green hydrogen production costs. The lower power consumption will drive the cost of green hydrogen to less than $1 per kilogram, lower than most fossil-fuel based production, according to the company. BP is betting big on green hydrogen to curb its carbon emissions in coming decades and participated in the $12.5 mln Series A financing round alongside other investors. (Reuters)

SCIENCE & TECH

Track and offset – Bluesphere Ventures launched Climate.bot, a platform designed to track and offset users’ environmental footprint. Each offset on the platform is matched by tree planting, facilitated by Bluesphere. Climate.bot aims to expand its capabilities to include plastic and biodiversity measures in the near future. 

AND FINALLY…

Polluter pays – Homeowners in the ski resort town of Breckenridge in Colorado will have to pay to offset the emissions associated with outdoor features like hot tubs or fire pits starting this month, under the town’s renewable energy mitigation plan (REMP). The plan calculates the CO2 emitted and requires that the homeowner offset the footprint by adding solar or other energy-saving devices to the property, or by making a cash payment to the town’s climate-related fund. However, the REMP is unlikely to have great effect on reducing such outdoor features given the fact that mitigation fees are incidental compared to the expense of these mountain homes. (The Colorado Sun)

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