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TOP STORY
INTERVIEW: Slow progress on registry dampens optimism for Article 6.4 trade, warns IETA boss
A lack of progress on setting up a registry for the Paris Agreement’s Article 6.4 mechanism could delay trade of sovereign credits in the market, warns the President and CEO of the International Emissions Trading Association (IETA).
EMEA
ANALYSIS: Prepare for takeoff – EU airlines start to get ready for the end of free emission allowances
The phase out of EU ETS free allocation for the aviation sector by 2026 is prompting some airlines to already hedge their emission allowance position for 2024 and beyond.
Euro Markets: EUAs trim weekly gain as traders speculate whether August rally is over
European carbon prices dropped sharply on Friday, trimming the week’s gain to just 1.5% as selling picked up after prices had reached a 13-day high on Thursday, with traders speculating whether the traditional August rally had run out of steam early or if the slump was merely due to short-term profit taking.
UK ETS reforms may cost oil major £30 mln hike in carbon costs, say analysts
Proposed reforms to the UK carbon market could result in oil and gas major seeing a near £30 million rise in permit costs due to the inclusion of certain emissions in the scheme from the production of offshore fossil fuels, according to an analyst report published in August, though the overall impact on the sector of the changes will be “minimal”.
Zimbabwe backtracks on carbon credit revenue grab, but will still take 30% -media
Zimbabwe has reportedly rolled back on its plans to take half of all carbon credit sale proceeds and ringfence a further 20% for local communities in the wake of concerns from investors, while neighbouring Mozambique intends to set out its own carbon trade framework next year.
ASIA PACIFIC
New Zealand Labour proposes delaying agricultural carbon pricing scheme by two years
The New Zealand government is proposing to delay the start of emissions monitoring in the agricultural sector by some two years, saying it needs more time to legislate and implement its split-gas farm level agricultural pricing policy.
NZ Market: NZU price at 5-month high following ETS free allocation bill passage
The NZU price was trading up 5.6% on Friday, as parliament’s passing of legislation tightening industrial allocations contributed to a confluence of other indicators driving a less negative sentiment in the market.
Australia’s Clean Energy Regulator announces audits on HIR projects
The Clean Energy Regulator has highlighted auditing requirements on human-induced regeneration projects, following a prominent scientist claiming his research was being misrepresented by the regulator to support its adjudication of the method.
CAR says proposed China adipic acid offset protocol can overcome past environmental integrity concerns
Offset standard Climate Action Reserve (CAR) on Friday published its draft China adipic acid production protocol, arguing new design measures can safeguard against integrity concerns that resulted in the EU ETS forbidding the use of such carbon credits a decade ago.
CN Markets: Chinese CO2 permits hit record highs, healthier volumes
CO2 allowance prices in China’s carbon market climbed to a fresh all-time high of 70 yuan ($9.60) in the past week amid improved sentiment, with trading volume climbing well above the 1.5 million mark, though liquidity still largely hinges on the contribution of block deals.
China new CCER platform begins registering accounts as market moves closer to relaunch
China’s newly established trading platform for the the national carbon offset market has begun accepting applications for opening accounts, marking another step towards the relaunch of the long-suspended voluntary programme.
Chinese oil major inks CCER deal with forestry project in Inner Mongolia
One of China’s largest state-controlled oil and gas companies has teamed up with local partners to secure domestically issued carbon credits in Inner Mongolia, ahead of the relaunch of the national offset market.
AMERICAS
Stakeholders push for 48% reduction in California cap-and-trade permit supply by 2030
A wide swath of industry, non-profits, and utilities have all called for a California cap-and-trade allowance budget adjustment to achieve at least 48% emission reductions by 2030, according to public comments to submitted to state regulator ARB this week.
California non-CO2 power supply reaches all-time peak in 2022
The absolute share of renewable and non-GHG electricity supply in California rose to a record high last year on the back of more solar power, while unspecified power imports hit a four-year peak, according to state data published Friday.
Producers buy CCAs and sell RGGI, speculators shorten positions across the board
Regulated parties picked up California Carbon Allowances (CCAs) heading into the WCI Q3 auction and sold off RGGI Allowances (RGA), while speculators let go of permits in both markets, data from the US Commodity Futures Trading Commission (CFTC) showed Friday.
Brazil’s Acre state aiming to sell 100 mln jurisdictional REDD+ credits -report
The Brazilian state of Acre is currently negotiating the sale of 100 million tonnes of avoided deforestation carbon credits from the Amazon jurisdiction’s longstanding REDD+ programme, local media reported this week.
VOLUNTARY
Puro.earth opts to end expiry dates for its carbon removal units
Carbon removal standard Puro.earth has opted to eliminate expiry dates for all its CORC durable carbon removal units, likely boosting future supply of the premium-priced carbon credits.
US-based soil carbon measurement firm nets $10.6 mln in Series A fundraise
A Massachusetts-headquartered start-up on Thursday announced it has successfully procured $10.6 million in Series A fundraising as it intends to bring its soil carbon measurement technology to commercial deployment.
The time is now for more inclusive carbon market frameworks -report
With increasing national regulation and calls for higher integrity voluntary carbon market projects, more needs to be done to involve Indigenous Peoples and Local Communities in benefit-sharing mechanisms, according to a NGO report published this week.
INTERNATIONAL
Brazil, Australia could be best bets for large scale green H2 supply to Germany -report
Australia and Brazil are the best placed to supply large amounts of green hydrogen to Germany and the rest of Europe in the coming decade, according to a report released this week.
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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
INTERNATIONAL
Splashing the cash – COP28 hosts the UAE are considering creating a multibillion-dollar fund to spur clean energy investments across the world that it plans to unveil at this year’s UN climate talks in Dubai, according to people familiar with the plan. The fund could amount to tens of billions of dollars, with a sizable slice of the money coming from the UAE’s sovereign wealth reserves, according to seven people with knowledge of the discussions. A G7 government official said envoys from the oil-rich Middle Eastern nation had privately mentioned the idea of a fund of at least $25 bln. (Politico)
EMEA
Not ready – Large swathes of German industry will be impacted by the EU’s incoming carbon border adjustment mechanism (CBAM), but a survey among affected companies shows they are “insufficiently prepared” for the scheme, said consultancy Deloitte. Initially, CBAM will be limited to reporting requirements, until financial payments are due step by step from 2026. Of the decision-makers in companies which import affected products from outside the EU, 60% do not know the scheme, and only half of those who do say their company is affected, shows the survey. Less than half of the surveyed companies are preparing for the start of the transitional phase in which they will have to report emissions which stem from the production of imported products. Many respondents said they expect significant financial impacts and that they expect the CBAM to make their business less competitive. (Clean Energy Wire)
ASIA PACIFIC
Green gas balderdash – A report from IEEFA showed that while Australian gas distribution network companies continue to promote green gas, or hydrogen and biogas, to reduce residential emissions, they are investing very little in that outcome, Renew Economy reports. Companies have proposed an expense of A$19 mln over the next five years to prepare their networks for renewable hydrogen, but have requested to recover an additional A$461 mln in accelerated depreciation costs from consumers over the next five years as electrification takes hold. IEEFA said the messages presented in their ‘renewable gas’ campaigns appeared inconsistent with their own statements to regulators, their investment plans, the opinion of the regulator and energy market consumer representatives.
Delay – Australia’s Santos is facing further legal problems related to its Barossa gas development offshore the north of Australia, according to Nine Newspapers. Drilling was halted last year after a full bench of the Supreme Court upheld an earlier decision that found the company had not properly consulted with Traditional Owners; another case has been brought by the same lawfirm, the Environmental Defenders Office who are representing people of Croker Island or Minjilang. An ongoing halt will have implications for Santos’ plans to restart gas exports from its Darwin LNG plant by 2025 and also any plans to develop the depleted Bayu-Undan field into a regional carbon capture and storage hub given the high-CO2 Barossa will be one of its foundational customers.
Optimising through AI – Petronas signed an MoU with Microsoft and Cegal to accelerate digital innovation for the upstream value chain, the state-owned oil company said in a media release. The collaboration will see the construction of Microsoft Azure High-Performance Computing (HPC), AI Infrastructure platform to support and scale a wide array of applications that would optimise Petronas Upstream’s operational efficiency, including advanced AI, machine learning, energy transition and decarbonisation use cases. Petronas VP of group technology and commercialisation Aadrin Azly said that the HPC and AI capabilities can further optimise the delivery of Petronas’ energy offerings and innovate operations within the wider energy industry.
Renewable Energy Park – Adani Energy Solutions Ltd (AESL), has signed an agreement with Hyderabad-based Megha Engineering & Infrastructures to acquire a special purpose vehicle KPS 1 Transmission, Financial Express reports. KPS 1 is a transmission services provider. This acquisition is proposed to further AESL’s strategy for enhancing value for its shareholders through organic and inorganic opportunities, it said in a regulatory update. Adani group is developing a 20-GW hybrid renewable energy park in Khavda, Gujarat.
Green Deal – Investors in Ayana Renewable Power plan to raise as much as $800 mln, with a portion of it to be used for funding the expansion plans of the renewable energy platform, reports The Economic Times. The National Investment & Infrastructure Fund (NIIF) owns a 51% stake in Ayana, while British International Investment (formerly CDC Group) holds 32% and Eversource Capital-managed Green Growth Equity Fund has the remaining 17% stake. Ayana is currently involved in the development and management of more than 4 GW of solar, wind and hybrid power projects in several Indian states. It has an operational capacity of 1.3 GW of renewable energy projects in Andhra Pradesh, Karnataka and Rajasthan.
Learn – Indian finance minister Nirmala Sitharaman has asked Chartered Accountants to familiarise themselves with carbon accounting and environment, social and governance (ESG) related audits to serve their clients better. Speaking at an event of Institute of Chartered Accountants of India (ICAI) Sitharaman said that negotiating for your clients for transfer of technology, funds and partnerships will be required and CAs may want to set up newer standards, reports Financial Express.
AMERICAS
Criminal chemicals – The US EPA will have criminal and civil enforcement capabilities to deal with GHG emissions from oil production facilities and landfills, as well as the import or production of HFCs for the first time, under the federal agency’s final fiscal plan, Axios reported Friday. PFAS and carcinogenic coal ash contamination also made the list of the EPA’s priority chemical enforcement list. The Environmental Integrity Project shows EPA enforcement has been declining under US President Joe Biden’s administration.
Coal and carbon capture comeback – Enchant Energy is attempting to retrofit the closed down San Juan Generating Station with carbon capture technology to reopen the coal-fired electric plant, even after an earlier attempt failed. The New Mexico company operated the facility on the land of the Navajo Nation, and the Navajo Transitional Energy company owns 7% of the plant, as well as the coal mine that supplies the facility. There are currently no commercial-scale carbon capture, utilisation, and storage operations functioning in the US, after a Petra Nova project in Texas temporarily shut down. (E&E News)
VOLUNTARY
Moo revenue – British-Swiss agritech company Mootral claims it has now sold 3,000 of its Verra-certified cow burp credits to “well known” UK businesses seeking to offset their emissions, with proceeds paid back to UK dairy farmers who have introduced the company’s feed supplement to reduce methane emissions from cows by 38%. (BusinessGreen)
AND FINALLY…
Greens screened – “Toxic workplace.” “Kick A** NGO.” “Stay away from this company!” Those are some of the comments about environmental and conservation groups on Glassdoor, a website that promotes “radical transparency” about workplaces by allowing users to anonymously review their organisations. The reviews and ratings offer glimpses into workers’ experiences inside major environmental and conservation groups, many of which employ hundreds – or in some cases thousands – of employees. E&E News reviewed Glassdoor ratings of 29 major national environmental and conservation groups as of July 25, excluding some with fewer than 25 reviews. Among those, Earthjustice received the top marks, getting 4.6 stars out of 5. Other highly rated groups were the Nature Conservancy (4.4), Ducks Unlimited (4.3), Friends of the Earth (4.3) and the Trust for Public Land (4.2). Defenders of Wildlife and Environment America received the lowest ratings of the groups reviewed; they each received ratings of 2.1 out of 5. Among the other groups with the lowest ratings of those reviewed: the League of Conservation Voters (2.8), the Sierra Club (3.1) and 350.org (3.3).
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