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TOP STORY
ANALYSIS: Alberta’s TIER regime faces pressure to tighten emissions benchmarks from federal programmes, CCUS
Alberta may need to strengthen its large emitter system to avoid running afoul of the Canadian CO2 pricing benchmark, as the impact of federal climate policies and carbon capture projects on the province may eliminate significant demand drive down credit prices, experts and market participants told Carbon Pulse.
AMERICAS
WCI Markets: WCAs plummet 20% after steep Q3 auction clear triggers surprise cost relief measure
Washington Carbon Allowances (WCAs) took a nosedive Wednesday after the state government said it will sell millions of forthcoming reserve allowances solely at the scheme’s lower tier price, with a state senator also unveiling draft legislation in the wake of the record high Q3 auction results publication to provide cost relief by raising the programme’s near-term allowance budgets.
WCI Markets: CCAs notch modest gains on thin volume, as traders shrug off Washington influence
California Carbon Allowances (CCA) remained fairly resilient to Washington Carbon Allowance (WCA) market mayhem and through a week of subdued equity market sentiment, while traders also pointed to a forthcoming rulemaking and options activity in explaining the recent price increases.
Brazil’s Goias state to use carbon market to hit 2050 CO2 neutrality
The central Brazilian state of Goias on Wednesday announced it will soon unveil a plan to zero out its GHG emissions by mid-century, in part through a jurisdictional REDD+ crediting system.
Colombian government announces billion-dollar fund to tackle deforestation
The Colombian environment ministry on Wednesday announced a fund to help reduce deforestation and put the country on track to reach its climate targets.
Panama clarifies reforestation projects can participate in global voluntary carbon markets
The Panama environment ministry on Wednesday released a statement noting that private reforestation projects are eligible to sell offsets into the voluntary carbon market (VCM), so long as they meet requirements under the country’s climate policies.
US government support for DAC will be catalyst for further private capital into sector, says developer
US government support to advance direct air capture (DAC) through the Department of Energy’s $3.5 billion to be invested in four regional DAC hubs over the next five years, and its identification of specific hubs to receive that investment, is a “huge proof point” for the sector and technology, a leading DAC developer told a conference on Thursday.
US startup secures $12 mln in seed funding to advance sustainable aviation fuels
A US-based startup focused on crafting sustainable fuels and chemicals from captured CO2 has announced an injection of $12 million in seed funding.
OECS, carbon firm forge partnership to spearhead projects in Eastern Caribbean
The Organisation of Eastern Caribbean States (OECS) has signed an agreement with a carbon removal and reduction company to foster collaboration in the development of projects in the region.
VOLUNTARY
Microsoft and other large multinationals pour more investment into carbon removal purchases
Tech giant Microsoft on Thursday announced one of the largest-ever carbon removal deals, as a corporate buyers’ organisation also revealed it has spent several million more in purchases from a group of 12 startups in the sector.
Analysts latest to launch country-level index to aid voluntary carbon market investors
A carbon analytics firm has announced a new indexing system that ranks countries based on their regulatory and investment attractiveness for voluntary carbon market (VCM) projects, following on from another marketplace announcing a similar service earlier this week, as they both aim to clear up the information landscape amid the rapidly changing sector.
Voluntary carbon analytics firm calculates 60% drop in price of direct air capture units by 2030
Analysts at a voluntary carbon market data firm have estimated that the price-per-tonne of direct air capture units will fall below $450 by the end of the decade, based on forecasts from around 100 stakeholders in engineered removals, they wrote in a post published Thursday.
Climate tech firm raises $11 mln for direct air capture technology it says reduces costs
A new direct air capture (DAC) advancement which negates the needs for energy intensive fans is being touted by a climate tech firm that claims to have significantly reduced the cost of operation.
Deep well injection company announces $8 mln fundraise to launch carbon removal and storage provider
A Texas-based industrial waste management company on Thursday launched a standalone biomass carbon removal and storage company that seeks to generate credits for $200 less than other permanent sequestration technologies.
US developer plans REDD+ projects in Liberia, becoming first American outfit to do so
A US-based carbon offset developer unveiled plans on Wednesday to develop REDD+ projects in partnership with local forest communities in the Republic of Liberia.
EMEA
Euro Markets: EUAs drop to one-month lows as traders look beyond auction pause to bearish fundamentals
European carbon allowances gave up morning gains for a second session on Thursday, posting their sixth day of losses as a sparsely-populated markets looked past a second day without auction supply to more bearish fundamental indicators, while natural gas fluctuated sharply amid conflicting reports around a scheduled strike at LNG plants in Australia.
Swiss business group to buy CCS units from South Pole-developed biomass facility
Carbon project developer South Pole announced Thursday that work has started on a biomass carbon capture and storage plant in Switzerland, with plans for the facility to remove over 4,000 tonnes per year when it becomes operational in 2025, and the first batch of units to be bought by a Swiss business foundation.
Aramco has the weakest climate plans of oil and gas majors, finds report
The world’s largest oil giant, Saudi Aramco, also has the weakest climate pledges of the oil and gas majors, according to a report published Thursday by a think-tank, while European firms have significantly more advanced plans than others regions such as North America and Asia.
EU nations urged to pursue power market reform in grid renovation wave
EU nations should make progress “as soon as possible” on the European Commission’s proposal to tackle high energy prices and energy supply issues, the executive’s energy chief Kadri Simson reminded participants of a high-level forum in Brussels on Thursday.
EU trade deficit imperils bloc’s big-emitting manufacturing industries -industry alliance
EU industries’ trade deficit is widening and risks deteriorating further if concrete, targeted solutions are not implemented, representatives from 25 EU industries have warned in a letter sent to European Commission President Ursula Von der Leyen, Commissioners, and the EU parliament on Thursday.
Partners launch initiative to bridge funding gap for clean cooking solutions in Africa
Global development and financial leaders this week announced a partnership at the Africa Climate Summit (ACS) aiming to address the considerable funding gap in the continent’s clean cooking sector and to encourage investment by mitigating associated risks.
ASIA PACIFIC
South Korean firms target Southeast Asia for Article 6 landfill gas projects
Two South Korean companies on Thursday signed a joint development agreement to build a portfolio of landfill gas projects abroad starting with Southeast Asia, targeting the generation of 10 million carbon credits by 2030.
Hitachi’s digital solution arm to introduce forest carbon services in 2024
The IT solution arm of Japan’s Hitachi group is planning to launch a new business next year that provides comprehensive support for the creation and trading of forest-based carbon credits, making a foray into the domestic offset market.
BP says en route to decarbonise its own hydrogen
BP’s planned clean fuel and green hydrogen hub at its shut-in oil refinery in Perth in Western Australia would have struggled to get past the first post without A$70 million in funding from the Australian federal government in April last year.
Mitsubishi teams up with Singaporean partner to launch decarbonisation solutions
Japan’s Mitsubishi Electric has teamed up with a Singapore-based software provider to develop and market solutions that support carbon neutrality in the manufacturing sector, it announced Thursday.
Pertamina chief calls for CCS to be allowed into carbon trading
Indonesia’s state oil company Pertamina would like to see a carbon trading mechanism for carbon capture and storage (CCS).
Indian fintech company to offer carbon offset options to consumers
A major fintech company in India has partnered with an Australian cleantech startup to promote carbon neutrality in the sector.
INTERNATIONAL
Major forestry firms launch international coalition to drive sustainability transition
Some of the world’s largest forestry companies on Thursday jointly launched the International Sustainable Forestry Coalition (ISFC) to support a greater role for the forestry sector in the sustainability transition.
BIODIVERSITY (FREE TO READ)
80% of TNFD members want to adopt its recommendations by 2026, chair says
Around 80% of the 1,100 members of the Taskforce on Nature-related Financial Disclosures (TNFD) forum said they would adopt its recommendations by 2026, the co-chair of the taskforce has said.
Advisory firm sees mandatory reporting regimes fuel demand in New Zealand biodiversity market
Introducing mandatory natural capital accounting and nature risk disclosure schemes would create the foundation for demand in a New Zealand voluntary biodiversity credit market, according to government-commissioned advice.
Most debt-stressed countries could protect 100% of biodiversity at little cost, researchers find
An academic paper on debt-for-nature swaps published this week found that of 67 highly indebted countries studied, over half could protect all their biodiversity for only a fraction of their debt relief.
Finance coalition outlines biodiversity guidance for action from central banks
An organisation representing eight central banks has issued guidance on how financial institutions can approach nature-related risk.
Groups to raise $1 bln for massive nature restoration project in Eastern Himalayas
Two conservation groups lead an initiative that aims to raise $1 billion in order to protect and restore 1 million hectares of land across Northeast India, Bhutan, Nepal, and Bangladesh.
Biodiversity Pulse Weekly: Thursday September 7, 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).
ICYM
Carbon Pulse grows global news reporting team by almost 50% in biggest hiring push yet
FREE READ – Carbon Pulse has increased its global team of reporters by nearly 50% in its largest hiring push to date, as the company channels significant investment into further strengthening the world’s premier carbon markets news service.
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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.
Flowcarbon Carbon Smart Summit – Sep. 19, New York City: Your chance to get up to speed on the fast-changing carbon markets at Climate Week NYC! Join us for a full-day/in-person event featuring leading experts working at the forefront of the voluntary carbon markets — from project development and finance to key policy initiatives, corporate sustainability and technology trends. Speakers will include: Mark Patel (McKinsey), Kelley Kizzier (Bezos Earth Fund), Mark Kenber (VCMI), Alexia Kelly (High Tide), Judith Simon (Verra), David Antonioli, Zach Scott (Trafigura), Julie Bennett Bunuan (Truist) — and many more. Registration is free. Sign up today at carbonsmart.global
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
N for no – The Netherlands is easing its disputed goal of halving nitrogen emissions by 2030 in the run-up to November elections, Bloomberg reports. The target, designed to comply with EU rules on reducing nitrogen pollution, prompted uproar among farmers who said the measures would force them out of business. The cabinet will now scrap the 2030 deadline as three of the four coalition parties no longer support the proposal, according to people familiar with the matter who spoke on condition of anonymity. It is unlikely that the bill would be approved by a parliamentary majority, the people said. The push to cut emissions by 2030 — instead of the 2035 deadline currently set under Dutch law — led to a stinging electoral defeat in March. The upstart Farmer-Citizen Movement become the biggest party in the Dutch upper house as the environmental policies from the coalition drew stiff opposition from the agricultural industry.
Clean steel – H2 Green Steel has raised equity funding of about €1.5 bln to build a flagship plant in Sweden, the steel company said on Thursday, in line with plans presented in April. The round of private placement was co-led by new investor Hy24 alongside existing investors Altor, GIC, and Just Climate, the Al Gore-backed company said in a release, and also included new investors Andra AP Fonden and Temasek as well as a group of current owners. (Reuters)
Phone a friend – UK telecom giant BT is piloting SAP’s Sustainability Data Exchange (SDX), a new platform for carbon accounting, as it aims to standardise sustainability reporting, Tech Radar reports. BT will allow SDX to collect, trace, and share carbon data across its own supplier base. This should give it more visibility into the carbon footprint of its products and services, which the firm can later share with business customers. BT said it was the first organisation in the UK to adopt this process, adding that it will strive towards the standardisation of sustainability reporting across global value chains. It expects the use of the platform to help with a pledge to help customers avoid 60 MtCO2e by 2030.
Auction flop – A UK government auction to release results on Friday has received little or no interest from offshore wind bidders because the maximum price generators can receive has been set too low, say industry insiders speaking to Sky News. The price should have been set higher to reflect the increasing costs of manufacturing and installing turbines, say the insiders. The offshore wind industry has been battling increases to the cost of financing, supply chain pressures and a rise of 40% in the cost of steel. The UK’s largest renewables generator SSE has ruled itself out of the auction as the economics don’t stack up.
EU power amendments – Spain has proposed several amendments to help pass a key piece of legislation to overhaul the EU’s electricity market, including measures to control the flow of state aid to avoid “under- and overcompensation” for new energy projects, reports Reuters. Spain holds the presidency of the EU until December. The power market reform aims to help expand renewable energy and protect consumers from energy price rises such as those seen following the Russian invasion of Ukraine. A key area of contention to passing it centres on the issue of state aid and how it could distort market competitiveness within the bloc, with EU members fearful that France could benefit unfairly from its nuclear power plants and sell cheaper electricity to its industrial plants.
Power in a pact – Mozambique plans to draw on its extensive hydro, solar and wind potential to secure an energy-transition pact with wealthy nations and aims to announce such a pact at the COP28 climate summit in late-November. Electricity from its renewable sources would be used to meet its own power needs and those of its neighbours, as well as to power the processes of battery minerals such as graphite and lithium. Funding talks have so far been held with Belgium, Germany, the UK, and the UAE, reports Bloomberg. The centerpiece of such a pact would be a $4.5 bln hydrogen power and transmission project, which may bear similarities to some of the Just Energy Transition Partnerships that some of the world’s richest governments are implementing with South Africa, Indonesia, Vietnam and Senegal.
AMERICAS
Calculating carbon – A bipartisan pair of US Congressmen have introduced companion legislation in the House for a bill currently garnering interest in the Senate that would calculate the emissions intensity of industrial materials produced in the US, reports E&E News. Reps. John Curtis (R) and Scott Peters (D) will serve as lead sponsors on the House version of the Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act, which proposes to require the Department of Energy to study and determine the emissions intensity of nearly two dozen products made in the US and by G7 countries, free-trade agreement partners, and foreign countries of concern or those that hold a substantial global market share for a covered product. The list of covered products includes aluminium, iron, steel, plastic, crude oil, lithium-ion batteries, solar panels and wind turbines. The act is being viewed as a potential first step in building support for a carbon border adjustment mechanism (CBAM), and Republicans who have signed onto the bill have highlight that it could provide the US with a competitive advantage in light of the EU’s impending CBAM implementation.
FERC filler – US Senate Energy and Natural Resources Chair Joe Manchin has recommended David Rosner to fill the vacant Federal Energy Regulatory Commission (FERC) seat, according to six people familiar with the nomination process, EnergyWire reported. Rosner would join the commission as a Democrat if nominated and confirmed, which would give FERC a 3-2 Democratic majority over Republicans for the first time since early January. Rosner has worked in FERC’s Office of Energy Policy and Innovation as an energy industry analyst since 2017, and has been working as a detailee for Manchin’s committee since last year. FERC declined to comment on Rosner and the nomination process.
Renewables replace – Bonus credit schemes from US President Biden’s Inflation Reduction Act (IRA) look set to redistribute the deployment of renewable energy projects to areas affected by the closure of coal mines or coal-powered plants and low-income areas, reports Reuters. One programme, The Energy Community Tax Credit Bonus programme, provides 10% extra tax credits to solar and storage projects on top of those already available through the IRA, while another programme, the Low-Income Communities Bonus Credit programme, offers a range of credits to eligible areas. To qualify, energy community must be in areas with high fossil fuel-related employment and where the unemployment rate is higher than the national average, or in communities disproportionately affected by closers, including but not solely in terms of employment. According to a recent survey by the non-profit American Council on Renewable Energy (ACORE), over 90% of renewable energy investors and developers are “to some extent” prioritising projects in these areas.
Unanimous no – A panel of three South Dakota Public Utilities Commissioners unanimously voted to deny infrastructure and services firm Navigator CO2’s application for a permit to construct the Heartland Greenway carbon capture pipeline in South Dakota, a local Minnesota news outlet reported Wednesday. The $3 bln, 1,300-mile (2,100-km) pipeline was expected to transport liquid CO2 from 21 ethanol and fertiliser plants across five states to an underground sequestration site in Illinois and also travel through Minnesota, with the project’s attraction being its eligibility for federal tax credits of $85/t of sequestered carbon, the report noted. The commission was also united in their refusal of the company’s request to pre-empt county pipeline setback ordinances that mandate minimum distances between pipelines and dwellings, schools, and other places. The commission denied the permit due to failure of the company to adequately disclose CO2 plume modelling and a failure to provide timely notices to some of the landowners along the proposed route. The denial follows a similar permit refusal from North Dakota for Summit Carbon Solutions’ proposed CO2 pipeline which is also expected to cross through South Dakota. The Summit South Dakota permit hearing is scheduled to begin on Monday, while its proposed route hearing through Iowa is currently in progress.
ASIA PACIFIC
G20ing green – G20 countries will aim to triple renewable energy capacity by 2030. The bloc will encourage efforts to meet the target to increase clean energy generation, reported Business Standard. Members will also urge for a similar impetus in the deployment of abatement technologies like carbon capture that can reduce emissions from the use of gas, coal and oil. The G20 energy ministers’ meeting had ended in a stalemate after Saudi Arabia and Russia, among the world’s largest fossil fuel exporters, had blocked the proposed commitment to a tripling of renewables. Boosting renewable energy capacity will be crucial to help countries meet their climate targets as power generation accounts for about a third of global emissions.
VOLUNTARY
Back of the net (zero) – The Australian men’s and women’s football teams have sought to demonstrate their commitment to addressing the climate crisis by purchasing carbon offsets covering their flights at the recent world cups in Qatar and Australia, the Guardian reports. The move follows increasing criticism towards sporting organisations over their contributions to global heating. The ‘Socceroos’ and Professional Footballers Australia (PFA) pursued the offsets following the Qatar men’s tournament, undertaking an audit of the players’ flights in partnership with environmental market investor GreenCollar. Based on that information, the PFA committed funding to a carbon credit-generating project that restores native habitat in New South Wales. Under a similar process, the audit for the flights taken by the ‘Matildas’ at the women’s world cup is underway.
SCIENCE & TECH
Up and away – A hydrogen-powered plane with the ability to fly as far as from London to Rome has completed its first piloted journey, in a move that could pave the way for zero carbon routes across Europe, reports the Daily Telegraph. The aircraft, which was developed by the German company H2FLY, is operated using liquid hydrogen which generates power for the electric motors turning its propeller. Liquid hydrogen is far lighter than batteries and needs smaller tanks than gaseous hydrogen – potentially giving aircraft a much greater range and more space for passengers and cargo. Plane makers and engine developers such as Rolls-Royce and Airbus which have tested aircraft powered by gaseous hydrogen admit the large engines present the greatest challenges. H2FLY said the use of liquid hydrogen also doubles the range of its aircraft to 1,500km, the distance from London to Rome, compared with using gaseous hydrogen. However the fuel is difficult to manage. Hydrogen is a gas at normal temperatures and must be cooled to minus 253C to become a liquid, and then stored in insulated “cryogenic” containers.
MIT chases CO2 – Scientists at MIT are exploring ways to combine technologies that capture and convert CO2 into an integrated and energy-efficient process that could potentially run on renewable energy. In a recent study published in ACS Catalysis, the researchers detailed how a single electrochemical process can capture and convert CO2 by using an electrode to attract CO2 released from a sorbent, subsequently converting it into a reduced, reusable form. The results implied that the process would be well-suited to work for the highly concentrated emissions generated by industrial processes, especially the hard-to-abate sectors that do not have a renewable alternative. (Phys.org)
AND FINALLY…
Number one boy – Jeremy Strong, the actor famed for his portrayal of Kendall Roy in HBO’s “Succession,” is backing disruptive climate activists hoping to kick-start the movement with a series of protests this month. Strong this summer on a Zoom call with donors to the Climate Emergency Fund – a group that funds disruptive climate activists – as organisers are gearing up for protests in New York City. Organisers are planning a “March to End Fossil Fuels” on Sep. 17 ahead of a UN climate summit in New York on Sep. 20, as well as a series of actions targeting people in power. Strong, urging other donors to support those activists, pointed to this summer’s extreme weather events and cautioned that the window for climate action is closing. “For the next brief amount of time, it’s not too late. So there is still time for us to take action and do something,” he said. The US is “still the largest producer of oil and gas in the world, and we are expanding currently our fossil fuel infrastructure,” Strong said. “Our president has not declared a climate emergency.” And during the Republican presidential debate earlier this week, “we all heard … that climate change is apparently a hoax,” Strong said. (E&E News)
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