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TOP STORY
Gabon coup highlights risks ahead of summit to attract carbon investment to Africa
Gabon has become the latest African country to be shaken by unrest after senior military officers staged a coup on Wednesday, days before Kenya and the African Union Commission host a summit that intends to drive carbon investment into the continent.
INTERNATIONAL
World to miss 2C target, only see moderate cuts in energy-related emissions, Exxon says
he world is far from meeting an International Panel on Climate Change target to limit global warming to 2C above pre-industrial times and will continue to use fossil fuels at a much higher rate without more investment, new technologies and better policy settings, such as the US Inflation Reduction Act.
Forest fires double in intensity in past 20 years, data shows, fuelling concerns over climate change feedback loop
Forest fires are getting worse, burning almost twice the tree cover in the last 20 years compared to the previous two decades, according to new analysis.
EMEA
EU fossil power generation hits record low in H1 as demand collapses
Power generation across EU countries fell to its lowest level in the first six months of 2023, as a 5% drop in overall consumption year-on-year and strong renewable output led to a 23% collapse in coal and 13% fall in gas burn.
EU sets out rules for first green hydrogen auction
The European Commission on Wednesday set out rules for participation in its inaugural auction, funded through ETS revenue, to subsidise green hydrogen across the 27-nation bloc.
Euro Markets: EUAs settle at one-week high as strong auction and COT data underpin rally
European carbon prices moved higher on Wednesday, following a recent trend of early-session strength and holding on to those gains after a strong auction and weekly Commitment of Traders data from the two main exchanges that showed a slight build in investment funds’ short positioning.
European-based carbon credit firm faces stock market delisting
A publicly-traded European carbon credit firm faces delisting from Amsterdam’s Euronext stock market.
Italian cement company to trial replacing fuel with a thermal battery to lower emissions
A US-based startup is partnering with Italy’s second largest cement company to trial a technology that converts electricity to stored heat, which could significantly lower CO2 emissions for hard-to-abate sectors.
AMERICAS
Brazil ETS bill vote delayed in Senate after governors issue demands
A vote on legislation which includes Brazilian President Luiz Inacio da Silva’s draft emissions trading system proposal that was scheduled to take place in the Senate Environmental Committee on Wednesday has been postponed.
Guyana targets $70/tonne for REDD+ sales, brushes off integrity concerns
The leader of highly-forested Guyana has touted huge aspirations for carbon markets at a recent meeting with a former UK prime minister and separately rebuffed questions on carbon credit integrity.
US offering $350 mln to reduce methane output from oil and gas
US states can now draw on $350 million in grants from the Inflation Reduction Act (IRA) to monitor and reduce methane emissions from their oil and gas operations.
Two US carbon removal ecosystem players receive federal funding to advance DAC
A coalition led by a California-based research centre and an incubator for engineered carbon removal have both received Department of Energy funding to advance direct air capture in the US.
Washington partners with carbon removal devloper to tackle wildfires
The Washington State Department of Natural Resources (DNR) announced plans on Tuesday to partner with a developer of carbon removal facilities to reduce the risk of catastrophic wildfires in the east of the US state.
US lawmakers introduce bill to promote small forest landowner participation in carbon markets
A bipartisan pair of US Congresspersons have introduced a bill to provide up to $150 million to help family and small-scale forest owners overcome barriers to developing carbon projects.
ASIA PACIFIC
ANALYSIS: Australia’s oilers line up for CCS as offshore drilling falls
Australia has just released 10 new areas for large-scale CO2 storage off its coast, nominated by its oil and gas industry which has pulled back on traditional offshore work in recent years.
NZ minister stresses ETS review designed to ensure long-term market confidence
New Zealand Climate Change and Environment Minister James Shaw on Wednesday defended the government’s consultation process and refused to rule out policy options as he addressed foresters’ concerns about the options raised in the ETS review.
NZ forestry regulations have to strike the right balance to gain community support, expert says
New Zealand’s forestry regulations needs to be balanced to gain rural community support while at the same time allowing the sector to expand to the scale required to meet the country’s climate goals, an expert told a conference Wednesday.
South Korea to sign REDD+ MOU with Laos by year-end
South Korea is planning to sign a Memorandum of Understanding (MOU) with Laos by the end of this year to deepen their cooperation on REDD+ projects, as Seoul has committed to securing more international credits for its climate goals.
New Zealand to imminently release ITMO strategy paper, minister says
The New Zealand government will publish a paper relating to its approach to Internationally Transferred Mitigation Outcomes (ITMOs) in the coming days, the minister for climate change and environment told a conference Wednesday.
Agri-tech firm teams up with climate consultancy to promote sustainable rice cultivation in India
A new alliance formed this week has become the latest to target sustainable agriculture in an effort to save water and reduce methane emissions from rice cultivation in India.
Consortium lays foundation of a ‘first of its kind’ carbon credit revenue share system in Bangladesh and Cambodia
A consortium has come together in a first of its kind project to enable households in Bangladesh and Cambodia access to clean cooking solutions while generating income through their cooking practices through a carbon credit revenue share system.
VOLUNTARY
FEATURE: Kelp-hosting sea caves reach new depths on carbon removals, promise multiple benefits
A California-based developer that uses manmade structures on the seabed to harvest carbon-sequestering kelp has signed its first offtake agreement for the resultant blue carbon credits and says that investor interest is strong in the projects thanks to the multiple benefits they deliver for marine life, climate change, and coastal communities.
Ratings firm highlights cracks in Everland’s REDD+ robustness claims
In an attempt to allay market confusion from contrasting conclusions reached by REDD+ stakeholders and academics last week, an offset ratings firm released an analysis on Wednesday explaining key shortcomings of one of the studies.
BIODIVERSITY (FREE TO READ)
Academics outline unequivocal principles for area-based biodiversity conservation
A paper currently undergoing peer review aims to cut through current debates on how best to do area-based biodiversity conservation in light of the increased global attention on national biodiversity targets and investments and the emergence of nature-based credit markets.
Biodiversity offsetting by mining firms not sustainable, academics say
The practice of biodiversity offsetting by mining companies is not a long-term sustainable solution to compensating for environmental impacts, academics have said.
COMMENT
Check the pixels, but don’t lose sight of the big picture
Rapidly scaling decarbonisation action must be our mission, as we confront an ever more terrifying climate crisis. But instead we risk slowing the pace of decarbonisation to an untenable level, warns John Connor of Australia’s Carbon Market Institute.
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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
Symbolic number – A crunch meeting held in the Dominican Republic this week on the rules for a new international loss and damage fund has settled on $100 bln as required by developing countries by 2030 to offset the loss and damage caused by climate change. The figure is a highly charged symbol in climate talks as rich nations promised and failed to deliver $100 bln a year in climate finance by 2020. The target came from a joint proposal put forward by the 14 developing country members of the committee drawing up the rules for the fund. The target is a way off the $150-300 bln required annually by 2030 to tackle climate-related loss and damages, in a UN-commissioned report. (Climate Home News)
EMEA
Record breakers – The EU is set to import record volumes of LNG from Russia this year, despite aiming for the bloc to wean itself off Russian fossil fuels by 2027, the FT reports. In the first seven months of this year, Belgium and Spain were the second- and third-biggest buyers of Russian LNG behind China, according to analysis of industry data by NGO Global Witness. Overall, EU imports of the super-chilled gas were up 40% between January and July this year compared with the same period in 2021, before Russia’s full-scale invasion of Ukraine.
Cash for MRV – Carbon credit ratings agency Sylvera announced that it had received a grant from Innovate UK to deliver innovative monitoring, reporting, and verification (MRV) of land-based removals in the UK’s peatlands. The research will be conducted in partnership with the UK Centre for Ecology & Hydrology as part of its CGR-Peat project. The grant is the second Sylvera has received for this work, and the second phase of research commenced at the start of Aug. and will end by the end of next July. The work will comprise field research, machine learning development, and testing across peatlands in the UK.
Reporting notice – A UK government notice published Wednesday announced that the responsible department would set out the approach and timeline for creating and publishing guidance for monitoring and reporting public sector emissions. The government confirmed it will conduct research to map the different reporting approaches available and identify what decarbonisation outcomes they can achieve, consult on policy approaches to gain external input to shape policy outputs, and eventually publish the guidance to support public sector organisations.
ASIA PACIFIC
Feedback needed – South Korea’s environment ministry plans to hold a public hearing on amendments to the 3rd basic plan (2021-25) for the country’s national ETS on Sept. 13, ahead of the announcement of the policy draft, with a focus on changes to the carryover rules in order to revitalise the carbon market, it announced Wednesday. As sentiment in the Korean ETS has been sluggish due to a glut of allowances, a state-run think-tank has called for the government to gradually ease carryover restrictions to better reflect the current national emissions reductions target and boost liquidity in the market.
Hydrogen study – Japanese trading company Mitsui has teamed up with Mitsui Chemicals, IHI Corporation, and Kansai Electric Power to conduct a joint study for the establishment of a hydrogen and ammonia supply chain based in the Osaka coastal industrial zone, it announced Wednesday. The four companies, which will also conduct surveys to expand the use of ammonia in the Kansai and Setouchi regions, have begun discussions with Kobe Steel, a potential candidate that could benefit from the utilisation of such gas, according to the statement.
Biogas production – Carmaker Hyundai Motor has signed a memorandum of understanding (MOU) with Landfill Site Management Corp to collaborate on clean hydrogen production technology, using biogas generated from food waste treatment processes, according to the Korea Times. Landfill Site Management Corp will be responsible for researching biogas preprocessing technology and providing facilities related to biogas, a raw material for hydrogen production. The two companies aim to establish a system capable of producing 216 kg of environmentally friendly hydrogen daily using biogas over the next two years.
AMERICAS
Shifting hands – ShiftCarbon, a sustainability software company based in Vancouver, announced Wednesday its intent to acquire Zero Carbon Technologies Limited, a private firm in the growing EV reuse and recycling sector. Zero Carbon Technologies focuses on areas such as refining battery substrate from all Li-ion batteries and lead acid battery recycling. Its technology reduces the carbon footprint of incumbent lead-acid recycling by 85%, cuts waste outputs by more than 90%, and improves battery energy and power densities by up to 40%. ShiftCarbon says the acquisition is an initial phase of its comprehensive business transformation, and both sides have already agreed to undertaken steps to ease integration and align interests.
Winding down – Only one out of the three federal offshore wind leases in the Gulf of Mexico received any bids at Tuesday’s auction, Reuters reports. The winning bid by Germany’s RWE sold for $5.6 mln, securing the energy company’s rights to 41,470 ha off Louisiana. This was the lowest winning bid for a federal offshore wind lease at auction since the Obama administration, and the auction was the weakest of the four held since President Joe Biden took office in 2021 aiming to expand the wind industry.
Mark on Amazon – Denmark has pledged to donate DKK 150 mln ($21.9 mln) to Brazil’s Amazon Fund to combat deforestation. Danish Minister for Development Cooperation and Global Climate Policy Dan Jorgensen and Brazil Environment Minister Marina Silva made the joint announcement on Tuesday, emphasizing the need to accelerate efforts to fight deforestation, land degradation and drought, reverse biodiversity loss, and restore degraded lands. The Danish government’s donation for the period 2024 to 2026 is currently subject to parliamentary approval. (Yahoo News)
Gtg, HFCs – The California Air Resource Board (CARB) announced the release of a Request for Information (RFI) for the Senate Bill (SB) 1206 Assessment Report. The bill directs CARB to publish an assessment by Jan. 1, 2025, detailing California’s plan to transition its economy away from hydrofluorocarbons (HFCs), as well as to ultra-low global warming potential (GWP) or no-GWP alternatives by 2035. The board has invited all interested parties to participate in the development of the HFC Assessment Report by Oct. 20 via their public docket.
Very expensive GHGs – The Department of Environmental Conservation for the state of New York has updated its Value of Carbon guidance to add the social costs per imperial ton of sulfur hexafluoride (SF6) and HFC-236fa. The document places the 2023 social value of SF6 at $4.7 mln per imperial ton and HFC-236fa at $1.7 mln per imperial ton. The two gases are among the most potent of non-CO2 greenhouse gases due to their long-lasting and high-impact nature. SF6 is used as an insulating gas in electricity, while HFS-236fa is used as refrigerant.
VOLUNTARY
Two-way tango – Blockchain-based tech company Thallo has used its two-way bridge technology to link up with the registry Social Carbon. The-two way bridge allows carbon credits from a registry to be moved securely onto and off a public blockchain. Thallo is thought to have become the first blockchain-based firm to have set up a two-way bridge, inking the first deal with Colombia-based registry BioCarbon last October, and then with Finnish engineered removal standard registry Puro.earth and brokers SCB Environmental Markets. The crypto carbon market hopes the innovation of a two-way bridge will overcome the previous concerns of the one-way bridge, which was the form of bringing a credit on chain most commonly used at the start of the 2021 crypto carbon boom. It saw the first players retiring carbon credits on a registry and then creating a corresponding representation of the credit on the blockchain. But Verra banned the practice, and was quickly followed by the other main standard bodies, amid concerns it could lead to double counting. Social Carbon transitioned from a co-benefit standard to a full standard in 2022, and has listed six projects to date with a pipeline of 30 projects expected in 2024. (Citywire)
INVESTMENT
The OGs of ESG – Morningstar, after evaluating 108 asset management companies, identified eight as truly dedicated to ESG based on their process, resources, and active ownership. Morningstar’s annual ESG Commitment Level, initiated in 2020, classifies companies into several tiers: leaders, advanced, basic, or low. Leaders in this year’s ranking included Affirmative Investment Management, Australian Ethical, Boston Trust Walden, Domini, Impax, Parnassus, Robeco, and Stewart Investors. The “leaders” category is reserved for firms that have prioritised sustainability from their inception or have integrated it as a core business principle. Notably, Wellington Management and Brown Advisory moved up from “basic” to “advanced.” In contrast, 31 asset managers, including industry giant Vanguard, were placed in the “low” category. UBS Asset Management experienced a drop from “advanced” to “basic” in 2023, due to challenges arising from its acquisition of Credit Suisse’s asset management division. The majority of the assessed firms originate from the US, followed by Australia and the UK.
SCIENCE & TECH
Maritime CCS – Wartsila is helping shipowners and operators to understand how carbon capture and storage (CCS) can be installed on both new-build and existing vessels through a series of CCS feasibility studies, reports the Manifold Times. The studies take four to six months of study and design work and have already been carried out on a mix of vessel types, including a container vessel and a gas carrier. They are intended to help research, develop, and bring to market maritime CCS technologies. Retrofit CCS installations will be made easier by the presence of a scrubber onboard, such as the CCS-ready scrubbers already offered by Wartsila.
AND FINALLY…
The secret of their success – In a recent study published in PLOS Climate, researchers found a stark contrast between the carbon emissions tied to the income of the wealthiest and poorest households in the US. Specifically, the CO2 generated from just 15 days of income for the top 0.1% of wealthy households equals the emissions related to the lifetime income of the bottom 10% of households. The research discovered a direct relationship between rising income and increased environmental impact. In 2019, the top 10% income-earners were linked to 40% of the US’s total emissions. Investments, especially in fossil-fuel-related industries, significantly contribute to the carbon footprints of high-income households. The study goes beyond consumer actions, examining the carbon emissions resulting from generating income, particularly from investments. It found that higher-income groups tend to derive more of their income from investments, which often have larger carbon footprints than wage-based incomes typical of lower-income brackets. These wealthier groups also tend to be whiter, whereas Black Americans are overrepresented in the lower-income categories. Despite contributing less to carbon emissions, Black communities and other marginalised groups often suffer the most from the consequences of climate change. (PBS)
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