Newsletters > CP Daily: Monday September 11, 2023

CP Daily: Monday September 11, 2023

Published 03:13 on September 12, 2023  /  Last updated at 03:13 on September 12, 2023  /  Newsletters

A daily summary of our news plus bite-sized updates from around the world.

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TOP STORY

G20 agrees to pursue tripling renewables by 2030, fails to set targets

Leaders of G20 have agreed to try to triple renewable energy capacity globally by 2030, but failed to mention the phase down of fossil fuels, according to a G20 declaration released Saturday.

AMERICAS

California cap-and-trade budget cuts over 2025-30 must be enshrined next year, ARB official says

Revisions to California’s cap-and-trade allowance budgets over the 2025-30 period must take effect next year in order for the state to account for its free permit allocations to industry and utilities, an official for state regulator ARB said Monday.

Washington justifies allowance volume at next reserve sale, details steps to secure possible California linkage

An official from the Washington Department of Ecology (ECY) on Monday detailed the department’s rationale for releasing millions of more allowances at its forthcoming reserve sale than at the previous auction, and also described the state’s forthcoming measures to prepare for possible linkage with the California-Quebec cap-and-trade market.

RGGI Market: RGAs extend to new year highs on Third Program Review anticipation

RGGI Allowance (RGA) values reached new year-to-date highs through a US holiday-shortened and auction week prefiguring the next Program Review Meeting scheduled later in the month.

LCFS Market: California prices lift up to 8% after state reveals plans to strengthen regulation

California Low Carbon Fuel Standard (LCFS) credit values jumped on Monday morning after state regulator ARB published its plans to strengthen the environmental performance of the transportation sector climate programme, though some market participants are unsure about how bullish the proposed changes really are.

Canada-based carbon credit financier rebrands to showcase climate action mission

A Canada-based carbon credit project financier has rebranded to underscore the urgency needed in the global mission to decarbonise economies and the company’s focus on the climate action required.

Canada-based carbon project developer seeks 20% stake in CCU startup for $15.5 mln

A Canadian-headquartered carbon project developer wants to pay US$15.5 million for a 20% stake a carbon capture and utilisation (CCU) startup following signing of non-binding agreement.

US hands out $24 mln to research ocean-based CO2 removal methods

US President Joe Biden’s administration has allocated $24 million in funding for over a dozen research projects that seek to sequester CO2 emissions through marine-based technologies.

ASIA PACIFIC

EU carmaker subsidiary to acquire carbon credits from Chinese agricultural group

Subsidiaries of a European carmaker and a Chinese agricultural conglomerate have teamed up to generate animal waste management system (AWMS) carbon credits in China’s Anhui province.

Japanese startup, Indonesia conglomerate eye transport sector carbon projects

A Japanese climate startup that provides digital measurement, reporting, and verification (DMRV) software has teamed up with an Indonesian property developer to promote decarbonisation in the Southeast Asian country’s urban transportation sector.

GE-backed alliance to assess CCUS feasibility in Indonesia

A GE-backed business alliance has been established to develop a carbon capture, usage, and storage (CCUS) value chain feasibility study and joint solutions to decarbonise gas power plants in Indonesia, in a move to position the Southeast Asian country as the industry hub for the region.

Project developer sets its sights on nature-based removal credits

A developer is seeking investment into a new afforestation project in India to boost the supply of removal credits in the voluntary carbon market (VCM), despite uncertainties about the country’s future carbon market.

EMEA

EU’s renewable energy directive set to overcome last hurdle with full Parliament vote

The EU is set to take its final step in approving a revised more ambitious renewable energy legislation as the bill faces a full EU Parliament vote on Tuesday, with most parties likely to vote in favour.

Inefficient UK housing stock offered a lifeline with world-first carbon credits for domestic retrofit

The world’s first carbon credits for domestic energy efficiency retrofit are being launched in the UK through a financing mechanism whereby part of the credit proceeds are reinvested into financing power purchase agreements to facilitate household installations of clean energy.

INTERVIEW: UK can play leading role in hydrogen production and CO2 storage, says gas pipeline operator

The UK is in a unique position to act as an important hub for hydrogen development in Europe thanks to its pressing need to decarbonise its gas-reliant heating system, wealth of renewable energy for powering hydrogen electrolysis, and ease of access to the North Sea for potential CO2 storage, said one of the country’s leading pipeline operators.

EU metals sector deploys taskforce to work with EU on aligning with the bloc’s 2050 goals

The European metals industry started a process to establish its own transition pathway in collaboration with the European Commission, two sector associations announced on Monday.

Euro Markets: EUAs snap seven-day losing streak with modest gain on back of continued gas strength

European carbon prices rose slightly on Monday morning despite a relatively weak auction result, as EUAs garnered some support from a strong advance in natural gas after a major Australian LNG producer said there was little prospect of a swift resolution to strikes that have cut gas output.

INTERNATIONAL

UK, South Korea commit billions to UN’s Green Climate Fund

Britain and South Korea have respectively pledged $2 billion and $300 mln to the latest replenishment of the Green Climate Fund (GCF), a mechanism established to channel climate finance from rich nations to the countries in the Global South to aid them with climate action.

Global Biofuels Alliance launches at G20 summit to boost sustainable fuels

India along with several other leaders of the G20 launched a Global Biofuels Alliance (GBA) on Saturday to promote the use of sustainable and cleaner fuels.

More money and better policy: Executives open up in energy transition survey

Investment into lower carbon energy will need to rise steeply and policy settings improve if the world is to reach net-zero by 2050, but most executives believe they are doing better than their peers, a survey released Monday found.

VOLUNTARY

VCM Report: REDD sinks lower to add further gloom to the market

REDD avoided deforestation credits slipped lower last week to underline the lack of demand and reflecting an increasingly bleak voluntary carbon market as it waits the arrival of the ICVCM’s first batch of Core Carbon Principle labelled credits.

Carbon ratings agencies have valuable role but can improve, finds report

Carbon credit ratings agencies have a valuable role for raising the quality of the voluntary carbon market (VCM), according to a study published Monday of the four main players, though there is room for improvement in their activities and buyers must better understand their work to increase its effectiveness.

Chinese forestry firm reaches deal with Zambia to develop carbon credit projects covering 5% of country

Zambia has signed an agreement with a Chinese forestry firm to commission the development of nature-based carbon credit projects that will cover more than 4 million hectares of some 5% of the African nation’s landmass.

Verra deactivates 10 carbon credit methodologies, reviewing others

Carbon credit standards body Verra is eliminating the use of 10 VCS methodologies, including a deforestation and low-flow water project type, due to lack of use in the past five years, and is instituting a review of all their methodologies every five years.

Financial services company makes first fully automated sale of carbon credits

A new blockchain-based platform from a Chicago-headquartered financial firm has completed processing its first fully automated transaction of carbon credits, according to a press release on Monday.

SHIPPING

IMO shipping strategy a major step forward for sector’s climate action -study

The International Maritime Organization’s strategy for the transition to renewable energy is a major step forward in ambition that has overtaken many of the national, regional, and industrial steps already in place, according to research released Monday.

BIODIVERSITY (FREE TO READ)

Trio releases reef credit method for grazing land management

A group of Australian companies on Monday released a draft method to allow landowners to earn reef credits from improved grazing land management in a bid to boost soil health and improve water quality at the Great Barrier Reef.

US-Peru debt-for-nature swap to protect Amazonian biodiversity hotspots

Peru will redirect $20 million of its debt to the US to spend on conservation efforts in some of the most biodiverse areas in the Peruvian Amazon.

Investor reduced its exposure to UK water companies due to pollution

Allianz Global Investors reduced its exposure to UK water companies due to risks associated with them dumping sewage in waterways, an executive at the firm has said as the company ramps up its nature-related engagement.

Business coalitions band together to guide companies to boost biodiversity

Three global business coalitions have released co-produced foundational guidance to lead companies to a “nature-positive” future, as corporate focus on risks and dependencies ramps up.

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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

Not a good look – UK Prime Minister Rishi Sunak was warned that he faced exclusion from key discussions on the climate among world leaders at the UN before he decided to snub a global summit later this month, according to the Guardian. It was announced last month that Sunak would be the first prime minister in a decade to avoid attending the annual UN general assembly gathering of world leaders. The reason given was his busy schedule, but the newspaper reported that turning up risked embarrassment for the British premier. The UN secretary-general, Antonio Guterres, has called on world leaders to attend his climate ambition summit and leaders of the world’s biggest economies are expected to go. Guterres underlined, however, that only countries with demonstrably ambitious policies to reduce their emissions in line with the goals of the Paris Agreement would be allowed to participate in the climate ambition summit.

Shiver me winners – The British government has revealed the winners of the Zero Emission Vessel and Infrastructure fund (ZEVI), supporting economic growth and boosting the UK’s decarbonisation efforts with £80 mln investment. The announcement comes at the start of London International Shipping Week, which runs from Sep. 11-15. (Offshore Energy)

Slow growth – The EU economy is forecast to grow just 0.8% in 2023 and 1.4% in 2024, compared with predictions of 1% and 1.7% in May, according to figures published by the European Commission on Monday. The Commission also inched up its predictions for inflation next year, as high and still increasing prices hit consumer spending across the bloc, the FT reports.

Roast – Dutch Minister for Foreign Affairs Wopke Hoekstra, officially resigned from his national role, may not be the best fit to become Timmermans’ replacement as EU climate commissioner. Contrary to the nomination, signatories behind a “We move Europe” petition believe that, “as a former Shell employee with a history of support for policies and initiatives that are in conflict with climate solutions, this would be a dangerous appointment”. Over 9,200 people already signed the letter to MEPs and Ursula von der Leyen, president of the EU Commission, urging that Hoekstra is not given the position. On Thursday, the conference of Parliament’s groups’ presidents will set a date for Hoekstra to face MEP questions. A source said it may be any day between Oct. 9-12. While waiting, read Carbon Pulse’s profile and his potential duties.

Banking on it – Barclays has kicked off a search for a director to champion its climate efforts, after a bruising year in which the UK bank was targeted by campaigners over its environmental record, the Guardian reports. The bank recently closed applications for a climate communications director based in London, which is believed to be one of the most senior roles dedicated to coordinating its public response to climate pressures. The director’s responsibilities will include creating a “compelling narrative for climate transition” linked to the bank’s wider strategy, assessing “reputation and media risk” around climate issues, and working with senior stakeholders “to influence the outcome of such issues in a positive way”, according to the job posting.

ASIA PACIFIC

Greenlight – South Korea’s Ministry of Land, Infrastructure and Transport has approved four environmental projects aimed at cutting GHG emissions in both the construction and transportation sectors, the Korea Economic Daily reports. The four initiatives, including a plan by Korea District Heating to modernise apartment heating systems, are expected to slash emissions by an estimated 393,000 tonnes over the next 10 years.

High tide – A new research institute, Coastal Protection and Flood Resilience Institute (CFI), has been launched in Singapore to address rising sea levels due to climate change. The institute will develop innovative, multi-functional coastal protection and flood management solutions for Singapore’s coastlines and build local expertise, The Straits Times reported. Some of the goals of CFI are to conduct coastal science research, monitor and predict the coastal environment, enhance prediction systems for coastal processes, rainfall and water run-off, and integrate nature-based solutions.

AMERICAS

Methane mitigation – The government of Canada distributed C$575,000 ($423,700) from the Emerging Approaches for Reducing Landfill Methane Emissions Fund to five pilot projects attempting to reduce methane emissions from landfills across Canada, the environment ministry announced Monday. Funded projects include two from Ontario to monitor emissions using emerging technologies, one from Quebec to demonstrate and validate landfill gas recovery, and a pair from British Columbia for monitoring and identifying system leaks, the report detailed. Emerging technology such as drone-based monitoring and automated wellfield management systems, are being used to optimise reduction of methane emissions from landfills.

Funding solar – Alternative asset manager Kimmeridge announced in a press release Monday an investment of $15 mln in solar developer US Light Energy through its Kimmeridge Carbon Solutions fund that invests in the energy sector. US Light Energy is a New York-based distributed energy developer specialising in community solar projects, and also offers renewable energy offtake solutions for residential, small and large commercial, industrial, and municipal customers.

IEMAC meeting – California’s Independent Emissions Market Advisory Committee announced on Monday its next meeting on Oct. 24 between 1300-1530 Pacific (2000 GMT). The IEMAC is tasked with analysing the economic performance of the state’s cap-and-trade scheme and reporting its findings to the ARB and a Joint Legislative Committee on Climate Change. The committee has been debating the regulator’s ongoing public workshops discussing potential amendments to the state’s cap-and-trade programme, as well as potential linkage with other state cap-and invest programmes.

Biochar beginnings – Oil and gas firm Petrox Resources is entering a deal with M&L Renewable Energy Group to develop a 3,500 tonne-capacity biochar facility in Edmonton, Alberta at the cost of C$3.7mln ($2.7 mln), the companies announced. The two plan on developing more biochar plants across Canada. M&L converts waste biomass from agriculture, forestry, and municipal sectors into biochar and is based in Calgary, Alberta. Petrox is helping M&L raise capital for the project and could invest in the facility for equity in return.

What waste? – Enbridge and Divert have broken ground on a first-of-its-kind integrated diversion and energy facility in Washington state, reports Canadian Biomass Magazine. The $100-mln facility will encompass over 6,000 square meters and will use digesters to convert wasted food into carbon-negative renewable natural gas (RNG). Calgary-based Enbridge acquired a 10 % stake in Massachusetts-based Divert in March, and the facility is the first project to emerge from an infrastructure development agreement between the two companies that aims at growing supply of RNG, lowering GHG emissions, and helping solve issues related to food waste. The plant is expected to be fully operational by the end of 2024 and will be able to offset up to 23,000 tCO2 a year at full processing capacity.  

VOLUNTARY

Sequestration financialisation – ENGIE Energy Marketing is purchasing natural gas and Carbon Sequestered Credits that represent the carbon captured at the gas production facility from energy firm BKV Corporation, the companies announced Sunday. BKV’s Barnett Zero carbon sequestration plant in Bridgeport, Texas, will serve as the focal point of the deal. The facility is expected to capture 210,000 tonnes of CO2e per year and BKV will deliver 10,000 MMBtu per year. The two firms are billing Carbon Sequestered Credits as a new carbon product and referring to the gas as responsibly sourced.

SCIENCE & TECH

Blockchain bonanza – Sustainable blockchain company 5ireChain is partnering with digital carbon exchange Carbon Cell to build on-blockchain carbon markets for the transparent exchange of carbon credits. Using blockchain technology to buy and sell carbon credits is seen as a way to democratise the marketplace and improve transparency around transactions. The deal sees the two companies aim to bring carbon markets from Asia and the Middle East to their blockchain, allowing investors to trade carbon credits, plastic credits, Renewable Energy Certificates (RECs), and green bonds with instant settlement. The transactions will be processed in an automated environment with in-built products, such as spot exchange, marketplace, as well and integrated APIs.

AND FINALLY…

Airtops props – In a bid to replace fossil-based feedstocks, Coca-Cola Europacific Partners (CCEP) is funding a project at Swansea University to research the reuse of captured carbon in the creation of new plastic packaging. The initiative, named ‘Airtops’, is set to span three years and will concentrate on developing a sustainable CO2-to-ethylene conversion process, crucial in the manufacturing of high-density polyethylene (HDPE), a material used in bottle caps. The eco-friendly process, which avoids the use of fossil fuels, aims to advance the Coca-Cola Company’s goal to cease using virgin fossil-based plastics by 2030, supporting its broader ambition of achieving net-zero emissions by 2040. The financial details of the project remain undisclosed. (edie)

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