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
ANALYSIS: Experts cautious on calls for European carbon central bank
Amid recent calls for the introduction of a European carbon central bank to help regulate the EU ETS beyond 2030 as well as integrate removals into the mechanism, stakeholders have raised concerns both on the feasibility as well the necessity of introducing such a centralised regulatory body
VOLUNTARY
Carbon credit retirements tumble in August in wake of ICVCM release
Corporates have shied away from the voluntary carbon market since the release of the ICVCM’s framework for assessing methodologies eligible for its Core Carbon Principle (CCP) integrity labelling, with retirements and demand for REDD avoided deforestation dropping sharply in August.
Fuel supplier raises stake in voluntary carbon intermediary, secures first forestry credits
A European fuel supplier has increased its stake in a voluntary carbon market intermediary, which has now been issued its first batch of nature-based carbon removals, the firm announced in a release Thursday.
REDD developers must make co-benefits transparent to boost integrity, stakeholders argue
Community and biodiversity benefits can help demonstrate integrity in REDD forest protection projects but developers need to get better at disclosing them, community-focused groups argued this week.
EMEA.
Malta seen halting EUA trading account applications after influx from shipping sector
Malta has paused accepting applications for carbon trading accounts amid an influx of applications, market participants told Carbon Pulse this week, noting that that the demand was mainly from non-EU shipping companies trying to prepare for the sector’s imminent entry into the EU ETS.
Falling power emissions, rising hydro supply to depress EUA demand over balance of 2023 -analysts
European power emissions are set to fall by more than a fifth this year as gas-fired generation has returned to profitability in the region, while an uptick in hydro generation will also help depress demand for EUAs over the coming month, according to analysts.
UK appoints junior education minister to top climate and energy post
The UK government appointed Claire Coutinho as secretary of state in charge of the Department of Energy Security and Net Zero (DESNZ) as part of a ministerial reshuffle on Thursday, taking Grant Shapps’ place as he moves to head up the defence ministry.
Euro Markets: EUAs post first August drop since 2019 as market eyes supply hike in September
European carbon prices fell over the month of August for the first time since 2019 as the final reduced volume auction cleared at a discount, capping an early rally as participants anticipated the resumption of full sale volumes from tomorrow, while weaker natural gas prices appeared to shift generation margins in favour of gas, cutting potential demand for EUAs.
Maritime data firm, European utility team up to offer EU ETS management solution for shippers
A maritime data firm has teamed up with one of Europe’s biggest utilities to unveil a web-based EU ETS management solution for shippers being brought into the bloc’s carbon market.
ASIA PACIFIC
South Korea to fund companies that launch carbon projects abroad
South Korea is planning to provide financial support for the private sector to embark on international emissions reduction projects, laying the foundation for the implementation of such projects to scale up the supply of international credits.
Japanese oil and gas firm taps into domestic market with regional forestry project
A major oil and natural gas explorer in Japan has teamed up with a local government to back a forest project registered under the J-Credit scheme as part of its sustainability strategy to secure forest offsets at home and abroad, it announced Thursday.
Japan giants plan lower carbon, lower energy feedstock for glassmaking
Mitsubishi’s industrial arm could be producing circular carbon methanol (CCM) at commercial scale by 2030 via carbon capture and utilisation.
Indian state govt launches smallholder farmer carbon market initiative
A state government in India announced this week it will be working with partners to establish a network of smallholders farmers that will be able to earn carbon credits for agricultural innovation.
AMERICAS
WCI Markets: CCAs recover early week losses, WCAs recede into and through Q3 auction
California Carbon Allowance (CCA) prices recovered in the latter part of the week along with an upswing in broader macro sentiment, while Washington Carbon Allowances (WCAs) continued to recede into and post the state’s third cap-and-trade auction.
Global carbon markets provide lessons for controlling industrial sector leakage under New York cap-and-invest scheme, experts say
Numerous approaches from international carbon markets exist for tackling leakage and competitiveness concerns from energy-intensive, trade-exposed industries (EITEs) subject to New York state’s forthcoming programme, a webinar heard Thursday.
INTERNATIONAL
Arctic soil methane uptake could be greater than previously thought, study finds
The vast Arctic wetlands, which span over 80% of the region’s land area, may play a pivotal role in the uptake of the potent greenhouse gas methane, according to a recent study.
BIODIVERSITY (FREE TO READ)
Political ambition to improve drying ponds lacking, researchers say
Small water bodies with crucial benefits for biodiversity have been overlooked due to their size, a German research centre has said.
Link executive pay to nature targets to spur action, urges Holcim exec
The bonuses of senior leaders at companies should depend on achieving environmental goals on nature as well as climate, according to an executive at Holcim, one of the world’s biggest cement producers.
Biodiversity Pulse Weekly: Thursday August 31, 2023
A weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).
COMMENT
COMMENT: The market impact of the new EU ETS compliance cycle
The market impact of the new EU ETS compliance cycle explained by Gauthier Bily, CEO of Vertis Environmental Finance.
—————————————————
Premium job listings
Or click here to see all job listings
—————————————————
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
—————————————————
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
Calculated moves – The US denied allegations of favouring wealthy nations with regard to the allocation of board seats for the new international loss and damage fund. Earlier this week, the US put forward a proposal stating that the fund’s board should include 10 members from wealthy “Western Europe and Others” – including the US – and that the biggest financial contributors to the fund should receive four seats. Campaigners opposed the proposal, stating that the board would comprise members from at least 14 developed countries, and at most 11 developing country representatives. However, US government negotiator Christina Chan, who is a part of the transitional committee on loss and damage assessing the details of new fund address the costs of climate, responded that country’s proposal was balanced and that the “math worked out”. (Climate Home News)
VOLUNTARY
Changing plans – A Bloomberg feature that describes the quiet shift in Shell’s climate strategy, argues that its faltering offsets programme points to new problems with the use of carbon credits. In June, the recently-appointed CEO of the oil and gas major, Wael Sawan, laid out an updated strategy for the firm that included cutting costs and backing oil and gas. The article, published Thursday, suggests that what Sawan omitted was even more poignant, as he failed to mention the company’s prior commitment to spend up to $100 mln a year to build a pipeline of carbon credits to help meet its 2050 net zero target. Those goals for the offsets programme have now been retired, the company confirmed, as states in the Bloomberg piece, along with the plan to generate 120 mln carbon credits annually by the end of the decade from nature-based projects. Many of these Shell had planned to develop itself, and the previous target for credits would have accounted for about 10% of the company’s emissions.
Guilt-free child’s play – Toymaker the Lego Group has pledged to achieve net zero GHG emissions by 2050, and has also unveiled plans to boost investment in environmental sustainability by $1.4 bln over the next three years, reports edie. Its new targets will be aligned with the Science Based Target initiative’s (SBTi) Net-Zero Standard and will also feed into a new climate transition plan, to be published within two years. The investment plans will include creating carbon-neutral buildings and sites, investing in renewable energy production, and will also incorporate shadow carbon pricing for key investments, in addition to a carbon key performance indicator (KPI) tied to executive remuneration from 2024.
Air shipping mitigation – IT giant Lenovo is offering company clients the opportunity to buy sustainable aviation fuel (SAF) credits to offset their carbon footprint for air-shipped IT purchases. Lenovo is calling the product the ‘Reduced Carbon Transport Service’ and says the credits can achieve a minimum 70% CO2 reduction on a client’s air-shipping carbon footprint. Companies will be able to use the credits to report against their Scope 3 targets, says Lenovo.
EMEA
Sky-high no more – UK power generators will no longer be able to charge sky-high prices for power using a tactic that’s piled millions onto consumer bills under new rules from the country’s energy regulator. Ofgem’s new Inflexible Offers Licencing Condition will prevent plants, particularly gas generators, from “artificially inflating” prices by threatening to turn off before then demanding more money to keep operating, in a side market known as the balancing mechanism, reports Bloomberg. Traders could receive fines for up up to 10% of regulated turnover for breaching the new rule, which comes into force on Oct. 26, said Ofgem.
Poland’s green bill – A bill aimed at increasing the share of renewable energy sources in Poland’s energy mix will soon come into play after being signed off by President Andrzej Duda, reports Euractiv. The main objective of the legislation is to boost the share of clean energy in domestic energy consumption and to support the country achieve its GHG emissions reduction goals. The new law also makes it easier to bring small-scale renewable installations online by removing the permit requirements for photovoltaics up to 150 kW and promoting the roll-out of so-called Energy Clusters, which promote collaboration between local operators consuming, storing and selling electricity, heat, cooling, and power transmission.
Hey big spender – State subsidies in Germany are set to increase to €67 bln in 2024 from €38 bln in 2021, largely driven by efforts to green the economy and the energy crisis fuelled by Russia’s war against Ukraine, reports Clean Energy Wire as found in a government report. The increased spending is mostly due to programmes under the country’s Climate and Transformation Fund, a part of the state budget assigned to accelerate the low-carbon transition. These programmes include support for the energy-efficient modernisation of buildings, establishing a hydrogen economy and supporting microelectronics.
Jury’s out – Warsaw’s administrative court has suspended proceedings on the Turow lignite coal mine’s environmental impact assessment (EIA) that its owner PGE requires for its licence renewal. The verdict means that the current permit to extract lignite is still valid so mining operations in Turow will continue for as many as 20 years. Turow is wedged between communities in Czechia, Germany, and Poland. A lawsuit brought by NGOs from all sides and the German city of Zittau, stated that the EIA’s adoption was illegal due to its failure to address cross-border harm caused by the mine. (Europe Beyond Coal)
Plane to see – France’s transport minister has called for a minimum price for plane flights in Europe to battle climate change. Clement Beaune said in an interview with a weekly magazine that he would submit such a proposal to his EU counterparts in the coming days. “Plane tickets for €10 when we’re in the midst of the ecological transition, that’s no longer possible,” Beaune said. (AFP)
ASIA PACIFIC
Deeper cooperation – The Philippines government has extended its collaboration with two Japanese companies, engineering consultancy Nippon Koei and natural gas supplier K&O Energy Group, in a bid to support the development of a new carbon offset project, according to a statement released by the Forest Management Bureau (FMB). The findings of a feasibility study will play a pivotal role in determining the viability of pursuing particular target areas, laying the foundation for a forest-based carbon offset project in the Southeast Asian country, FMB said.
The priority – The government of South Korea has allocated more funds to ensure energy security in its overall budget for next year, according to Argus, citing documents from the Trade, Industry and Energy Ministry (MOTIE). The ministry’s energy sector budget is projected to rise to around 4.8 trillion won ($3.6 bln) next year, up from 4.35 trillion won this year. A substantial portion of the proposed energy budget is allocated to bolstering the country’s energy security and stabilising resource supply chains, including 1.2 bln won support for nuclear projects, according to the Argus report.
Marble mix-up – The original approval of a marble mine inside a wildlife sanctuary in Cambodia that would have threatened an important REDD+ project has since been suspended by the government in a win for conservationists and Indigenous communities. The REDD+ forestry project in question is located inside the Keo Seima Wildlife Sanctuary and benefits both local communities and the area’s biodiversity. Satellite data for the REDD+ project show it suffers far less forest loss than other parts of the wider wildlife sanctuary and surrounding areas that overlap with concessions. The mining exploration operation would have seriously jeopardised the success of the project and was suspended on June 27 by a letter from the environment minister, however the reasoning for the suspension is not clear. (Mongabay)
Big oil – Bharat Petroleum Corporation Limited (BPCL), India’s second-largest state-owned oil producer, unveiled its ambitious roadmap for the coming five years at its 70th AGM on Tuesday, reports Press Trust of India. Towards achieving net zero emissions by 2040 for both Scope 1 & Scope 2 emissions, BPCL has drawn up a net zero roadmap, which encompasses the green energy businesses, carbon capture, utilisation, and storage (CCUS), efficiency improvement, and offset procurements. This would require an estimated phased capital outlay of approximately $12 bln till 2040 and BPCL is geared for the same.
Going green – Indian Oil Corporation Limited (IOCL) plans to establish its inaugural green hydrogen production facility in Panipat, Haryana with a capacity of 10,000 tonnes per annum. This endeavour is slated to become operational within the next 2.5 years. Recent developments reveal that IOCL has opened international bids to construct the plant adjacent to its Panipat refinery on company-owned land. This plant is positioned to emerge as one of India’s largest green hydrogen facilities, as per News18.
But… – Indian Oil Corporation Limited (IOCL) plans to boost its natural gas consumption two-and-a-half times by 2030 in its quest for carbon neutrality, reports B2BChief. IOCL has set a net zero operational emissions target by 2046 and increasing the use of less-emitting gas is a key element of that plan. Currently, IOCL’s refineries together consume about 8.5 mln metric standard cubic meters a day (mmscmd) of natural gas. The use of naphtha is expected to increasingly fade at refineries as gas consumption rises.
AMERICAS
Building the bomb – The first public hearings on Argentina’s Vaca Muerta shipping terminal were held last week, the site of the world’s second-largest shale fields which have been described as a “carbon bomb” by green groups. During the consultations, oil firm YPF’s environmental assessment was criticised for not providing pipeline leak safeguards. Provincial legislation preventing hydrocarbon developments in the San Matias gulf in place since the 1990s were reversed last year. (Climate Home)
Green buildings – A study published in One Earth detailed that the US can reduce building emissions by over 90% compared to 2005 levels, saving the country over $100 bln annually on energy costs. Emissions from the US building sector have declined by 25% since 2005, when the sector produced 2.3 mln of CO2, and are projected to decline further by up to 41% by 2050. The sector has seen emissions reduction by over 8% (80 mln tonnes) in the first half of 2023 in comparison to the same time in 2022, largely because of a shift away from coal-powered electricity. However, the authors cautioned that reaching the 2050 net zero goals will require going beyond switching to renewable electricity, citing three main approaches to reduce the carbon footprint of buildings: improving energy efficiency, switching to low-carbon electric sources, and adopting smart technologies that determine how and when power is drawn from the grid. (Anthropocene)
Decreasing while increasing – Canada’s conventional natural gas and oil producers cut GHG emissions by 24% while increasing output 21% from 2012 to 2021, the Canadian Association of Petroleum Producers said on Thursday. The analysis only includes emissions from production of vertical wells, not taking into account emissions from oilsands production and indirect emissions upon combustion, such as driving. The reduction reflects in part regulations from Alberta and other oil and gas producing provinces for companies to lower methane emissions, which happen from flaring and leaky equipment. (Reuters)
CAISO in WA – The Washington Department of Ecology will host the California Independent System Operator (CAISO) in an informational webinar as part of the state’s electricity markets rulemaking. The session will go over the CAISO market’s GHG design in real-time, as well as its proposed GHG design in the day-ahead market. The meeting will take place on Sep. 12 from 1400-1500 Pacific (2100-2200 GMT).
INVESTMENT
Like a rock, like a planet – Chicago-based Gener8tor has opened its Direct Air Capture (DAC) Accelerator programme, aiming to support early-stage startups focusing on CO2 removal technologies. The initiative, which follows Gener8tor’s initial Sustainability Accelerator in Madison, Wisconsin, aims to leverage Illinois’ unique position as a hub for carbon capture innovations. Ryan Jeffery, senior managing director of sustainability at Gener8tor, said that the state’s active carbon capture projects and investments in agriculture and energy make it an ideal location for the accelerator. Startups from across the US can apply, but those that can best utilise the Illinois and Midwest ecosystem will be given priority. Gener8tor is among 13 semifinalists selected for the US Department of Energy’s DAC Energy Program for Innovation Clusters (EPIC) Prize, receiving $100,000 for the development of direct air capture technologies. The 12-week accelerator programme, offering individualised coaching and mentorship, could compete for a grand prize of $750,000 if it shows significant progress in implementing its solutions. (bizjournals.com)
AND FINALLY…
Feeling the burn(out) – Seven out of 10 UK professionals working in climate and nature sectors believe their teams are understaffed, as revealed by a survey from trade union Prospect. The survey covered 500 professionals from public bodies, NGOs, and the private sector. Results showed that 69% felt their teams had insufficient staffing, with 40% noting a reduction in team size over the past year. Over one-third reported a significant increase in workloads, with half seeing no career progression in the past year. Despite many of these roles demanding advanced degrees and experience, over 70% earned an annual salary of £40,000 ($50,700) or less. The study highlighted concerns about hiring less qualified individuals to save costs, which might hinder long-term progress. Prospect emphasised the need for government funding to support green jobs, critiquing the lack of an updated skills strategy since 2019. The UK government aims to create 2 mln ‘green collar’ roles by 2030, but experts warn of the current trajectory’s inadequacy. Ministers have repeatedly been warned that the government is not on track to achieve this milestone due to a lack of strategic planning, with the government’s own advisory body, the Climate Change Committee (CCC), cautioning strongly against continuing the current “hands-off” approach to green skills development and estimating that the net zero transition will deliver between 135,000 and 725,000 net new jobs by 2030. (edie)
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
