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TOP STORY

FEATURE: India seeks to strike the right balance in carbon market launch

Indian government officials are grappling with finding the right balance between demand and supply in what may over time grow to become one of the world’s biggest domestic carbon markets, as they expect to release a first set of draft regulations ahead of COP28 in Dubai in late November.

EMEA

AFRICA CLIMATE SUMMIT: EU looks to Africa for COP28 support to roll out green bonds, “true” carbon credits and pricing

The EU on Tuesday urged African nations to back its aims for the COP28 UN climate talks, amid consensus that the negotiations need to pivot towards accelerating the roll out of renewable power and the development of green hydrogen to generate sustainable economic growth.

AFRICA CLIMATE SUMMIT: African manufacturer unveils new electric cookstoves that track real-time usage

Two African manufactured electric cookers have been launched that use sensors to monitor the customer journey from end-to-end, including real-time energy consumption, as cookstove carbon project developers innovate to overcome criticism about over-crediting.

EU’s carbon capture, utilisation, and storage strategy’s release could be delayed -source

The European Commission’s strategy to capture, utilise and store carbon is at risk of being published later than the originally anticipated fourth quarter release, an EU source told Carbon Pulse on Tuesday, as the EU’s executive grapples with new appointments and approaches the end of its current term.

Euro Markets: EUAs ease lower amid steady selling even as auctions begin two-day pause

European carbon weakened on Tuesday afternoon as the pressure of steady selling interest bore down on prices amid patchy demand and traders positioned themselves for two days without daily EUA auctions, while the UK reduced its remaining auction volumes for the year.

European Commission President outlines duties of proposed climate and Green Deal commissioners

European Commission President Ursula von der Leyen laid out the tasks for the new European Green Deal commissioner and the candidate commissioner for climate action in their mission letters published on Tuesday morning, with much of the focus on preparing a new 2040 EU climate target and the implementation of the existing climate files.

The EU remains globally competitive in the race to zero carbon -report

The European Green Deal is keeping the 27-nation EU bloc competitive in the global race towards zero-carbon technologies, according to a think-tank report published on Wednesday.

EEX unveils global index family to track evolving carbon markets

The European Energy Exchange (EEX) on Tuesday announced the launch of its Global Carbon Index (GCI) Family, aimed at providing a comprehensive snapshot of rapidly evolving global carbon markets.

Opposition building against aspects of Rwanda forest bill, reports local media

A forestry law awaiting parliamentary adoption in Rwanda that proposes stricter protections for tree use may prove unpopular with the public as it could lead to a reduction in firewood and charcoal production, a local media source reported Tuesday, with significant opposition to the legislation likely to hold up the country’s planned expansion into global carbon markets.

German startup launches new subscription model, scraps brokerage fees to scale nature-based carbon projects

A German climate startup has launched a new subscription platform and ditched brokerage fees in an effort to support developers of nature-based carbon credit projects, it said Wednesday.

ASIA PACIFIC

New Zealand auction fails for a third consecutive time

New Zealand’s quarterly carbon auction failed for a third straight time on Wednesday, as the sale did not manage to clear above the government’s confidential minimum price.

Japanese conglomerate expands presence in domestic carbon market

A major Japanese conglomerate has teamed up with two local partners to initiate a forest carbon offset programme in Akita Prefecture under the country’s J-Credit system, it announced Tuesday.

Australia, South Korea lead G20 in per capita coal-fired emissions

Australia and South Korea are the G20’s top two coal-fired polluters on an emissions per capita basis, even as the bloc’s largest members have a larger overall carbon footprints, according to a report released Tuesday.

Indigenous carbon player hands reins to Carbon Neutral, Save the Children in low-key farewell to market

An Australian project developer will wind down this year, with its accounting standard to be taken over by global charity Save the Children and Carbon Neutral’s Perth office to take its existing work.

UNDP official warns southern Asian nations might miss their net zero targets

South and Southeast Asian countries are running out of time and will likely not be able to reach their net zero targets within the stipulated period, a UNDP official told a Kuala Lumpur conference Tuesday.

AMERICAS

PREVIEW: Traders foresee stronger Q3 RGGI auction settlement, but remain divided on discount

Market participants believe the September RGGI auction clearing price will jump compared to recent sales and may even flirt with an all-time high, though uncertainty remains as to whether the sale will come in at a slim or moderate discount to the secondary market allowance price.

Top Brazilian oil producer Petrobras enters voluntary carbon market with REDD+ offsets purchase

Brazilian state-owned oil company Petrobras on Tuesday announced its first purchase of carbon credits to fund the preservation of the Amazon rainforest.

Canadian voluntary carbon credit firm takes steps to secure balance sheet amid losses

A Toronto-based carbon credit financier has significantly cut executive headcount, subleased office space, and taken further steps to reduce general and administrative expenses and save millions annually, it announced Tuesday.

VOLUNTARY

Carbon ratings agency outlines methodology for discounting credits on project-level quality

A carbon ratings agency has proposed a methodology for risk-adjusting carbon credits to help corporates make credible net zero claims, based on its assessment of the quality of projects that have been issued units in the voluntary carbon market (VCM).

CIX debuts four cookstove contracts for the VCM

Singapore-based exchange Climate Impact X has released a set of cookstove global standard contracts for the voluntary carbon market.

UK startup raises $6.5 million in seed funding to build carbon project financing platform

A London-based fintech startup has announced the raise of $6.5 million in a seed funding round, which the company will use to build a carbon project financing platform that enables corporates to discover, finance, and monitor voluntary carbon market projects.

BIODIVERSITY (FREE TO READ)

UK outfit announces regenerative agriculture support programme

A programme for supporting regenerative agriculture initiatives across land and water will launch in October, advisors Bright Tide has said.

Nature coalition criticises UK government progress towards 30×30 biodiversity protection target

A coalition of more than 78 UK-based environmental organisations has claimed that the UK government lacks progress on the country’s 30×30 nature-protection pledge and called for more robust action.

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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

Blue banks – A group of eight development banks have agreed to work together on advancing the protection and sustainable use of oceans, according to a Tuesday release. Gathering at the Finance in Common summit in Cartagena, Colombia, the group includes Agence Française de Développement (AFD), the Asian Development Bank (ADB), CAF – Development Bank of Latin America and the Caribbean, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank (IDB), Germany’s KfW Development Bank, and the West African Development Bank (BOAD). In the first ever cooperation on oceans by public development banks, a Blue Finance Roadmap will be developed that will bring together experience and knowledge, identify financing opportunities, and ensure ambition. The declaration released by the group also emphasises that the banks should adhere to the do no harm principle and should make significant contributions to climate action, biodiversity preservation, and the advancement of sustainable livelihoods. 

Scientists speak – Over 200 scientists around the world have signed an open letter calling for responsible research, development, and field testing of ocean-based carbon dioxide removal. The document was organized by organized by nonprofit organization Ocean Visions Institute, with notable signatories such as David King, former chief scientific adviser to the UK government between 2000 and 2007 and James Hansen, former NASA climate scientist.

EMEA

Not good enough – Germany’s climate policy is insufficient to meet its national and international climate targets, according to the Climate Action Tracker project. Divisions in the country’s three-party coalition government are endangering emission reduction targets, the analysis concluded. Recent government policies may have bent emissions projections downwards, but policy and action are not in line with the Paris Agreement’s aim to limit global temperature rise to 1.5C, according to the latest update. The initiative tracks 39 countries plus the EU, covering around 85% of global emissions. (Clean Energy Wire)

He said electric, not CO2 neutral – About that: German transport minister Volker Wissing said at an e-fuels conference on Monday that the registration of new cars with internal combustion engines running on e-fuels should be allowed after 2035, even if the fuels are not 100% climate neutral. Wissing argued that “climate protection targets cannot be achieved” without the synthetic fuels, produced from electricity and CO2 from either industrial sources or the atmosphere. “We need them in maritime shipping, we need them in aviation, and we need them in other areas as well,” the minister added. (EurActiv)

Polaris party – PGNiG Upstream Norway, part of Poland’s Orlen Group, is set to operate and acquire up to a 50% stake in the Polaris carbon storage project in the Norwegian Barents Sea, owned by Horisont Energi. The deal aligns with Orlen’s 2030 goal of storing or utilising up to 3 Mt of CO2 annually. First carbon injections at Polaris could commence in late 2028 or early 2029. The project, still in early development, was granted a storage licence by Norwegian authorities in June 2022 and has the potential to store 100 Mt of CO2.

More onshore – UK Prime Minister Rishi Sunak has eased an effective ban on new onshore wind farms in England to see off a threatened rebellion by 25 of his Conservative MPs led by former COP26 president Alok Sharma. Ministers have now amended planning rules in the Energy Bill to make it easier for onshore wind farms to be built. Rules since 2015 have meant an objection from just one person over an onshore wind development in England could stop it going ahead but now the government has said it would make changes to make clear that suitable locations can be identified in a number of ways. (BBC)

Industrial reaction – The GMB Union has issued notices to various UK oil refineries, including Fawley, Valero, and Stanlow, signalling its intention to ballot contractor workers for potential strikes. The move comes after failed negotiations with the employer’s association, ECIA, over pay raises for the next year. In a previous ballot in July, 92% of GMB members rejected a pay deal offering an 8.5% increase for 2024 and a 3.5% hike for 2025. Industrial action could also extend to several nuclear power stations and Drax Power Station. The union is moving forward with a strike vote, as bosses have refused to meet before Sep. 21, making strikes likely in October. GMB argues that its members have endured pay freezes and are not benefiting from the wealth they help generate, with their current pay now more than 20% behind inflation rates.

Reed reshuffle – UK Labour Party leader Kier Starmer has appointed Steve Reed as the new Shadow Secretary of State for the Environment, Food and Rural Affairs in a Shadow Cabinet reshuffle this week as Parliament returned from its summer recess. Reed, the MP for Croydon North since 2012, has been moved across from his role as Shadow Secretary of State for Justice. Reed has voted largely in line with the Labour Party on issues surrounding the environment, by voting against higher taxes on plane and fuel taxes during the 2010s, while advocating for measures to ban fracking and decarbonise the energy system. His website’s “About” page says nothing on the environment, and the only All-Party Parliamentary Group to which he is a member is the ‘Tidy Britain’ APPG, which deals with local environment quality issues including littering, fly-tipping, and pollution. (edie.net)

Green is great – A new survey of more than 2,000 UK energy consumers by consultancy McKinsey & Company has identified soaring demand for green energy technologies, with almost half of consumers willing to adopt time of use (ToU) tariffs and over a quarter wishing for energy suppliers to provide green products such as solar panels. The increases in household power bills has led many energy consumers to be open to switching suppliers and accessing flexible energy tariffs and green products and services in efforts to cut their bills, the study finds. Further, the recent fall in wholesale prices has seen almost half of consumers willing to adopt energy-saving partial ToU tariffs or ToU tariffs with warnings, it says. Energy suppliers should tackle cost concerns, increase customer awareness, and simplify processes to attract more customers, says McKinsey.

Sell off-shore – Swedish utility Vattenfall is in early-stage talks to sell one of the UK’s largest offshore projects, which it halted in July because of soaring costs, Bloomberg reports. The company is negotiating with possible buyers of its Norfolk Boreas site, according to people familiar with the matter. Conversations are at an early stage and there’s no guarantee a deal will be made, but the company hopes the assets could draw interest from competitors, they said.

Hydrogen hotspots – Top of the pack to provider Germany with green hydrogen by pipeline are Algeria, Tunisia, and Spain, according to analysis by researcher the Fraunhofer Institute for Solar Energy Systems ISE, as reported in Clean Energy Wire. Meanwhile, Brazil, Colombia, and Australia are well placed to import other synthetic fuels like ammonia, methanol, and kerosene thanks to their well established shipping networks. Germany will be in need of such climate-neutral fuels by 2030, particularly in heavy industry and aviation, and won’t be able to produce enough of them domestically.

ASIA PACIFIC

SAF pilot – South Korea’s Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport will conduct a three-month sustainable aviation fuels (SAF)  trial from Sept. 5 by refuelling Korean Air cargo planes operating the Incheon-Los Angeles route with such fuel, they announced Tuesday. Data collected from pilot operations will be used to establish quality standards by the first half of next year and will be used to develop related laws and regulations in the country. France has required all airlines refuelling in the country to use a minimum of 1% of SAF in their fuel mix, while at least 2% of fuel supplied to EU-based airports will have to be SAF from 2025, according to the statement.

Solar roller – Tata Power Renewable Energy Limited (TPREL) will set up a 26-MW captive solar plant in Maharashtra, India. TPREL has signed an agreement with a leading iron casting and manufacturing company Neosym Industry Limited. The agreement is for 26 MW AC group captive solar plant, Business Standard reported. The project will generate 59 mln units of electricity annually. It will start from March 2024 and reduce 32,500 tonnes of CO2e annually.

AMERICAS

Risky contracts – Canada’s federal government informed the Pathways Alliance – a coalition of the country’s six largest oil and gas producers – that their CCS contract for difference (CfD) funding proposal was too large and risky, a Pathways representative told Reuters Tuesday. The alliance’s planned CCS hub would store 14 Mt/yr of emissions from 14 oil sands projects, cost an estimated C$16.6 bln ($12.2 bln) by 2030, and take years to build. Given the country’s federal benchmark for carbon pricing in 2030 is set at C$170/t, the Alliance is looking to lock in a contract with the government that would help pay for capital and operating costs to develop CCS capability. The contracts give investors in CCS certainty about future revenue by setting a minimum price for carbon, but is complex to execute since the country allows companies to sell credits from emissions reduced or captured, the report noted.

Power plans – Eversource, a Boston-based energy company, has filed its draft long-term plan to modernise the Massachusetts’s power grid and help the transition to clean energy, according to an announcement Friday. Known as the Electric Sector Modernisation Plan (ESMP), the draft plan is directly linked to mandates in the Massachusetts Clean Energy and Climate Plan for 2035 and 2050. Accounting for the state’s infrastructure needs over the next two decades, the draft of the ESMP includes clean energy investments that Eversource expects will allow for the adoption of 2.5 mln electric vehicles and 1 mln heat pumps, as well as enable 2.2 GW of solar. The Grid Modernization Advisory Council (GMAC) will hold two public listening sessions in the fall for customers to provide feedback on the plan, and Eversource will incorporate feedback from the GMAC sessions, stakeholders, and customers in the final ESMP, which it will submit to the Department of Public Utilities in Jan. 2024.

Resiliencities – The North American City Sustainability Study published by CBRE EA has listed 10 cities best poised to withstand the impacts of climate change on property values. Six US and four Canadian cities – Austin, Boston, Denver, New York City, San Francisco, Washington, DC, Montreal, Ottawa, Toronto, and Winnipeg – have stood out among the 66 cities that were assessed based on their mitigation and adaptation measures, as well as their preparedness against transition and physical climate risks. All 10 cities have pledged to be carbon neutral or achieve net zero emissions by 2050, and have increased the use of renewable energy over the past five years.

Winding down – The government of Nova Scotia announced that it will not be holding a reserve sale on Nov. 1, following the results of its final cap-and-trade sale on Aug. 22, which saw the largest underscription rate in the programme’s history. The government transitioned to an output-based pricing system (OPBS) for large stationary emitters in January, while the Canadian federal government’s ‘backstop’ CO2 levy commenced for fossil fuel suppliers in July.

VOLUNTARY

INVESTMENT

Methane millions – Nevada-based CH4 Global has raised $29 mln in a Series B funding round to contribute to its work to reduce livestock methane emissions, the company announced recently. The capital will go towards building a new facility in New Zealand to produce a seaweed-based supplement to reduce enteric methane in cattle, sheep and goats, and will bring the total funding raised by the company to $47 mln. Emissions from livestock are the largest source of methane globally — producing more than 150 mln tonnes of the climate-warming gas per year. When added to cattle feed, CH4 Global’s product the “Methane Tamer” reduces the animals’ methane emissions by up to 90% while also reducing the feed energy lost to methane emissions.

SCIENCE & TECH

Burn hazard – A new study using machine-learning models reveals that climate change has increased the risk of fast-spreading wildfires in California by about 25% on average compared to pre-industrial times. The study, led by Patrick Brown from Berkeley’s Breakthrough Institute, analysed 18,000 fires from 2003 to 2020 and found certain thresholds governing fire behaviour. When these thresholds were crossed, fires were nearly five times more likely to spread explosively. Climate change’s impact on vapour pressure deficit, which affects how air pulls moisture from flammable materials, plays a key role in fire risk, the study found. However, climate is not the only factor – wind, land use, and human activity also play significant roles. Even with emissions reductions, the number of fast-spreading fires could almost double by the end of the century, though smarter land and fire management could offset these climate-driven increases in risk, the authors wrote. (NPR)

AND FINALLY…

Riders on the storm – Over 100 actors in the UK entertainment sector have pledged support for the ‘Green Rider’ campaign, aimed at reducing the industry’s carbon emissions. Launched by trade union Equity, the campaign encourages contractual arrangements that uphold higher sustainability standards, such as limiting private jet use and off-site food sourcing. Notable participants include Bill Nighy, Stephen Fry, and Hayley Atwell, among others. The initiative seeks to change the culture within the entertainment industry, encouraging status to be linked to positive actions rather than excessive consumption. In 2020, the BFI revealed that major films produce an average of 2,840 tonnes of CO2, with transportation accounting for 51% of emissions. The campaign comes on the heels of other sustainability efforts, like NBCUniversal’s pilot to replace diesel generators with renewable electricity on London sets. (edie)

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