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TOP STORY

European Parliament backs higher 2030 renewable energy target

The European Parliament voted in favour of nearly doubling the share of renewable energy in the EU’s overall energy consumption by 2030 on Tuesday in Strasbourg, after months of infighting over the proposal both on the Parliament and Council of member states side.

AMERICAS

California eyes 30% LCFS reduction target and 5% step-change as floor, details timeline for rulemaking

An official from California regulator ARB alluded on Tuesday to more stringent carbon intensity (CI) targets in its upcoming proposal for the Low Carbon Fuel Standard (LCFS) rulemaking package and forecasted the role of biomethane and credit pricing amidst the agency’s timeline for decision making.

Washington, Canada signal forthcoming publication of data disclosures for their LCFS programmes

The Washington state and Canadian governments are working to soon publish data regarding credit prices and generation data for their low-carbon fuel standard (LCFS) programmes, a conference heard Tuesday.

Washington announces rulemaking to broaden offset project scope under cap-and-invest system

The Washington Department of Ecology (ECY) on Tuesday announced a forthcoming rulemaking to consider adding new offset protocols and updating existing ones under the state’s cap-and-trade programme.

California Assembly green-lights corporate GHG disclosure proposal, bill heads to governor’s office

The California legislative Assembly on Monday passed a bill requiring large companies doing business in the state to publicly report their Scope 1–3 emissions, with the bill headed to the governor for approval.

IRA to supercharge US electricity sector emissions reductions, agency report says

Investments in clean electricity and other climate solutions funded by the US government’s Inflation Reduction Act (IRA) will spur greater CO2 emissions reductions from the power sector and across the economy, found an EPA report released Tuesday.

Amendments to Brazil ETS legislation seek VCM integration, energy transition crediting

Brazilian senators over the past week proposed eight amendments to Brazil’s emissions trading system legislation to integrate the voluntary carbon market (VCM) and set offset usage limits, give credits to firms for transitioning to renewable energy sources, and narrow down the list of regulated sectors.

EMEA

EU carbon management strategy expected in November, despite consultation concerns

Stakeholders are still eyeing a November release for the European Commission’s carbon management strategy, despite concerns about the effectiveness of a recently-closed consultation and the impact of new appointments within the EU’s executive.

Euro Markets: EUAs drop to lowest in three months as sentiment weighs, as UKAs set new record low

EUAs dropped to a new three-month low on Tuesday as bearish sentiment gathered pace and the market geared up for Wednesday’s weekly Commitment of Traders data, while UK Allowance prices dropped for the ninth time in ten days to set a new record low.

Digitising CCS networks is key to reducing downtime and third-party liability charges for CO2 vent, says digital operator

The risk of having to pay hefty third-party liability charges due to operational failure with carbon capture and storage networks will be significantly reduced by using digital twin technology to predict potential integrity breaches, according to a digital services company positioning for a role in the sector.

VOLUNTARY

Tech giant makes substantial credit purchase from world’s largest air capture facility, backs modular DAC developer

A major tech giant is making its first foray into the world of direct air capture (DAC) by purchasing carbon removal credits from the world’s largest DAC facility and investing in a developer of modular DAC systems.

Biotech is the worst performing sector for corporate climate action, say analysts

Biotech companies are the laggard of the industrial world for corporate climate action, with a collective emissions trajectory equivalent to warming the world by 3.3C above pre-industrial levels, according to a new analyst indictor model that found no business sector was on track with the Paris Agreement goal to limit warming to 1.5C.

French utility EDF launches carbon credit business

France’s state-owned utility EDF has set up a new carbon credit business to develop a portfolio of nature-focused projects at home and abroad, it said on Tuesday.

German carbon firms announce partnership to facilitate sale of removals credits

Two German companies active in the voluntary carbon market (VCM) announced a partnership Tuesday that will enable the customers of a platform to buy credits from a portfolio of carbon removals projects, including via long-term automated purchase agreements.

Study reveals importance of soil moisture in carbon sequestration in Boreal forests

Researchers have uncovered vital data that underlines the crucial role of soil moisture conditions in determining the size and distribution of carbon stocks within boreal forests, which are home to a third of the world’s terrestrial carbon pool.

ASIA PACIFIC

Australia’s Woodside secures CCS ties with trio of Japanese firms

Australian oil and gas company Woodside has expanded its cross-border carbon, capture, and storage (CCS) value chain plans through a deal with three Japanese companies.

South Korea proposes to soften ETS allowance carryover rules in bid to drive demand

The government of South Korea will hold a public hearing on carbon market regulations on Wednesday, as it seeks to revitalise its emissions trading market by relaxing current KAU carryover rules.

Russian petrochemical giant eyes China as potential taker of its carbon credits

The largest integrated petrochemical company in Russia is considering the possibility of selling carbon offsets generated from its Russian climate projects to the Chinese market, it announced Tuesday, as demand for Russian credits elsewhere is minimal after its invasion of Ukraine.

“Infinite carrots” won’t solve Australian carbon leakage as a CBAM emerges as option, expert says

Carbon leakage is a problem that is still worth worrying about for Australia, and a Carbon Border Adjustment Mechanism (CBAM) is a logical way to address it, an industry expert told a Sydney conference Tuesday.

Chinese firms to add Bangladesh clean stove project to carbon portfolio

A Beijing-based carbon trader and offset project developer has teamed up with a China-focused venture capital firm to launch a clean stove project in Bangladesh, eyeing the growth potential of South Asian carbon markets.

INTERNATIONAL

Investors lack understanding and conviction in achieving a ‘just transition’, finds survey

A study conducted by a global investment company has found that most large investors are not familiar with the concept of a ‘just transition’, and those that understand the term have not implemented a plan to integrate it within existing strategies.

UN sets out “critical” steps to put building sector on course for net zero

Net zero is achievable in the construction sector by 2050, and moving aggressively to decarbonise the built environment is critical, the UN said Tuesday in a report outlining key steps that the sector can take.

BIODIVERSITY (FREE TO READ)

Wood products worst in manufacturing for biodiversity, CDC Biodiversite says

Wood-based products have the highest biodiversity impacts within the manufacturing sector relative to their output, French consultancy CDC Biodiversite has said.

No excuses for finance that causes deforestation, initiative says

Financial institutions can no longer claim a lack of data means they can’t track their impact on forests for net zero and TNFD processes, according to a new report released by a US-government-backed initiative.

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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

INTERNATIONAL

Week ends at Bernie’s – The chief executive of BP has resigned less than four years into his tenure after admitting that he failed to fully detail relationships with colleagues. Bernard Looney, who has spent his entire career with BP, has departed the oil major immediately in a surprise move. On Tuesday night, the company informed investors that Looney “did not provide details of all relationships and accepts he was obliged to make more complete disclosure”. BP said that Looney disclosed “a small number of historical relationships with colleagues prior to becoming CEO” during a review last year, triggered by information from an anonymous source. At that time, no breach of the company’s code of conduct was found. However, BP said its board “sought and was given assurances by Looney regarding disclosure of past personal relationships, as well as his future behaviour”. Further allegations were recently made and an investigation, involving external legal counsel, is ongoing. Murray Auchincloss, the company’s CFO, will run the business on an interim basis. Looney became CEO in 2020 and quickly set out an ambition for BP to “become a net zero company by 2050 or sooner”. Looney pledged to build up the company’s operations in low-carbon pursuits including renewable energy and EV charging, but he came under pressure from investors who wanted BP to focus on its oil and gas business, and green campaigners urging the company to move more quickly away from fossil fuels. Earlier this year, Looney faced criticism from environmental groups after scaling back its climate ambitions at the same time as announcing that annual profits more than doubled to $28 bln in 2022 after a sharp increase in gas prices linked to the Ukraine war boosted its earnings. (Guardian)

Losing patience – Small island states called for “legally binding obligations, rather than empty promises that go unfulfilled” in global accords to tackle climate change, during the International Tribunal for the Law of the Sea (ITLOS) held in Hamburg Tuesday. The Commission of Small Island States on Climate Change and International Law (COSIS) consisting of an initial alliance formed in 2021 between Antigua and Barbuda and Tuvalu, in addition to Palau, Niue, Vanuatu, Saint Lucia, Saint Vincent and the Grenadines, Saint Kitts and Nevis, and the Bahamas, want the tribunal to clearly set out their obligations to protect the marine environment from climate change impacts.  They have asked the tribunal for its formal opinion on state responsibilities on climate change under the UN maritime treaty that it is responsible for upholding – the 1982 UN Convention on the Law of the Sea. COSIS members hope that a strong opinion from the tribunal will prompt governments to take tougher action on climate change. Experts say its opinion could influence that of other courts, including the International Court of Justice and the Inter-American Court of Human Rights.

EMEA

Deep-sea backlash – British Prime Minister Rishi Sunak is being urged to back a moratorium on deep-sea mining by dozens of scientists over concerns about the industry’s potentially detrimental environmental impact and the ocean’s important role in carbon storage, the FT reports. A letter has been signed by 60 British researchers to the government, and this follows a July meeting of the International Seabed Authority (ISA) that blocked large-scale extraction moving ahead until a later date. Disturbing the seabed could lead to the release of carbon locked up in sediment, “negating millions of years of ecological and biochemical processes in just a few years,” the letter said. The UK government holds two exploration licences to extract key battery metals, such as copper and cobalt, from the Pacific, but has said that it would not proceed until the ISA puts a regulatory regime in place. Brazil, France, Germany, and Sweden are among more than 20 countries to have called for a pause to deep-sea mining, at least until the environmental effects of seabed exploitation are better understood.

Lindner no like – German Finance Minister Christian Lindner has slammed politicians in Brussels for seeking to enact stricter clean energy rules for buildings, warning that such plans could spark a dangerous voter backlash and fuel the rise of the far right. Speaking to Politico during an interview on Monday, Lindner argued that Europeans are suffering from over-regulation — or “red tape all over the place”. He urged European Commission President Ursula von der Leyen to pause new EU legislation aimed at curtailing greenhouse gas emissions during a time of economic stagnation wrought in part by high energy costs. The high-level intervention by the German minister comes days after German Chancellor Olaf Scholz unveiled a plan to remove “bureaucratic obstacles” to economic growth at home, while also promising to push for the same on the EU level. Lindner, the head of the pro-business Free Democratic Party (FDP), in particular targeted the EU’s energy performance directive for buildings, a critical part of von der Leyen’s Green Deal climate law package. The proposed directive mandates the renovation of older buildings across the bloc with the aim of fully decarbonising the EU’s building stock by 2050.

Carbon confusion – Most people in Germany have a very poor understanding of the mechanism and effects of the price on carbon emissions in transport and heating that the country introduced in 2021, a survey of 6,000 households by economic research institute RWI has found. The CO2 price is set to increase in coming years as part of a bid to incentivise the use of low-emissions alternatives. The majority (62%) of respondents said they feel either rather or very poorly informed about the carbon pricing scheme, especially when it comes to the financial consequences for consumers of petrol, diesel, heating oil, or natural gas. (Clean Energy Wire)

Fire frenzy – The European Commission is being called upon to increase forest fire prevention by EU lawmakers and experts following a suite of massive wildfires across the Mediterranean this year. There will be more fires in 2023 than on average between 2006 and 2022, and they are likely to increase in the future, according to the European Earth Observatory Copernicus. MEPs are calling for more resources at the EU level to fight wildfires, in addition to firefighters’ equipment and encouragement for voluntary work. Efforts must also focus more on wildfire prevention, given that 90% of the EU budget is spent on fighting fires, while only 10% is spent on prevention, according to a German MEP. The Commission published guidelines for improving the sustainable management of forests based on the EU’s Biodiversity Strategy 2030, but more needs to be done, say critics. (Euractiv)

ASIA PACIFIC

May the forests be with you – The legislative assembly of the Indian state of Nagaland has opposed the implementation of Forest Conservation (Amendment) Act during its session on Monday. Nagaland is a state where the government is led by NDPP, which is an ally of the BJP, the ruling party at the centre. The Northeast state becomes yet another to oppose the contentious Forest Act passed by the federal government in August. Nagaland comes under the Indo-Burma (Myanmar) biodiversity hotspot.

Energy MoU – India signed an MoU with Saudi Arabia to cooperate in the field of energy in New Delhi on Sunday. The two nations will work together in the areas of renewable energy, energy efficiency, hydrogen, electricity and grid interconnection, petroleum, natural gas, strategic petroleum reserves, and energy security. The MoU is expected to support India’s efforts for energy transition and transformation of global energy system towards combating climate change (Press release).

Green energy – Indian state-owned company NTPC Green Energy Limited (NGEL) has signed an MoU with Nayara Energy, a downstream energy company, to explore opportunities in the green hydrogen and green energy space. The MoU expects to accelerate decarbonisation and catalyse reduction in carbon footprint. Mohit Bhargava, CEO of NGEL, said that the partnership is dedicated to expanding NGEL’s green energy portfolio, and this collaboration exemplifies the relentless pursuit of a greener and more sustainable future for the nation.

Sui generis – Singapore-headquartered Cleantech Solar, a renewable energy solutions provider, has announced its maiden Virtual Power Purchase Agreement (VPPA). This is amongst the first operational VPPA plants in India. This agreement will enable the client to support renewable energy development whilst reducing carbon emissions without directly integrating the solar project into their physical energy infrastructure. The lifetime green energy generation from this project is approximately 187 GWh, equal to offsetting over 171,000 tonnes of CO2.

Plantation halt – Two plantation companies operating in Indonesia have been legally required to stop clearing forest for palm oil production in their concessions and to preserve what remains, under a court ruling. The Indonesian court rejected the lawsuits filed by the companies following a government cancellation of permits in Jan. 2022 on the basis that the companies awarded the concessions were moving too slowly in exploiting the natural resources. A government evaluation of both concessions found that, although rainforest had been cleared, the plantations had been left mostly idle, with no reports of production or harvesting carried out yet. The two companies to have filed the lawsuits were PT Megakarya Jaya Raya (MJR) and PT Kartika Cipta Pratama (KCP), which have been linked to Pacific Inter-Link, a holding of the Yemeni-based Hayel Saeed Anam conglomerate. The project area is divided into seven concessions, sitting on an immense block of primary forest spanning 280,000 ha of rainforest in the province of South Papua, Indonesia. The site would be the single-largest bloc of oil palms in Indonesia, the world’s top producer of palm oil, were it exploited for palm oil. Indigenous people living in the area welcomed the court ruling, but pointed out that communities in the concession areas still lack legal recognition of their ancestral rights to these forests. (Mongabay)

AMERICAS

Rejection repeat – On Monday, South Dakota regulators rejected a permit application for a proposed CO2 pipeline that would run through a total five states, reports the Seattle Times. The rejection is the latest setback in the project from Summit Carbon Solutions, which saw its siting permit rejected by the North Dakota Public Service Commission in August. The South Dakota Public Utilities Commission found that proposed route would violate county ordinances involving setback distances. The commission’s panel was supposed to begin a weeks long hearing for Summit’s proposal on Monday, but the hearing was adjourned and will not continue. Summit has announced that it intends to refine its permitting proposal and reapply.

Alberta carbon capture coming – Alberta Premier Danielle Smith says she will have a programme dedicated to helping spur more carbon capture projects in the province announced by the end of November. Her UCP government has said it will roll out incentives for CCUS projects similar to the Alberta Petrochemicals Incentive Program (APIP), which offers grants covering up to 12% of capital costs once projects are operational. Speaking at the Carbon Capture Canada convention in Edmonton Tuesday, Smith said she wants to have the programme ready to announce before the province sends a delegation to COP28. (Edmonton Journal)

AQM update – Alberta Environment and Protected Areas announced the Alberta Greenhouse Gas Quantification Methodologies (AQM) version 2.3, which includes new quantification methodologies for the Technology Innovation and Emissions Reduction (TIER) regulation. The changes comprise an update on the emission factors as well as the quantification methodologies for flaring emissions. 

VOLUNTARY

New faces – Climate Asset Management – the HSBC and Pollination joint venture – has appointed Andrea Abrahams to chair its Nature Based Carbon Fund investment committee. Abrahams is managing director of voluntary carbon markets at the International Emissions Trading Association (IETA) and has experience driving strategic decarbonisation programmes for global organisations and NGOs, Climate Asset Management said. The announcement comes as the firm also appointed Pollination senior adviser Hugh Killen as non-executive board chair and former Natural Capital Fund investment committee member Irina Frolova as chair of the committee.

INVESTMENT

Blue tracker – Rockefeller Asset Management and KraneShares have introduced the US-listed KraneShares Rockefeller Ocean Engagement ETF (ticker: KSEA), aimed at investing in public companies making a substantial impact on oceans and ocean resources. Part of the growing “blue economy”, which emphasises sustainable and ocean-positive benefits, the KSEA focuses on shareholder engagement activities that foster pollution prevention, carbon transition, and ocean conservation. The portfolio encompasses a range of sectors including aquaculture, renewable energy, and waste management. Leveraging Rockefeller’s expertise in engagement and sustainability, the fund seeks to capitalise on the blue economy’s potential to grow at double the rate of the mainstream economy by 2030, working towards competitive returns and better ocean health. Currently, the global economic output from the ocean stands at $2.4 trillion annually, ranking it as the seventh-largest economy globally if considered as a country.

Wig out on risk – UK veteran investor Bob Wigley, chair of banking sector lobby UK Finance, has joined climate risk analytics provider Climate X as an advisor, aiming to help support the sector in building climate resilience and further help counter criticism that the sector is ‘significantly underestimating’ climate risk, the company said. Climate X created a digital “twin” of the Earth, Spectra, which projects how extreme weather events – including flooding, extreme heat, storms, or landslides – can damage properties, infrastructure, or assets under different emissions scenarios.

New platform – Environmental markets analysis firm cCarbon.info has launched a new web platform to enhance its carbon market forecasting and analysis expertise across a broader range of environmental commodity markets. Transitioning from just a data and analysis resource, cCarbon said the new platform intends to be central to client decision-making processes. The platform encompasses not only the North American markets but also extends to the EU and UK ETS, plus other markets including Sustainable Aviation Fuels and International Renewable Energy Certificates.

SCIENCE & TECH

Smart watch neutrality – The Apple Watch Series 9 is the first product from the tech giant that it claims as carbon neutral, Bloomberg reported Tuesday. The watches are made with renewable energy and replace leather bands with a more environmentally friendly alternative. They also come with a faster S9 processer and brighter screen, which will respond to a double tap for the first time. The hardware of the watch series remains unchanged.

AND FINALLY…

Betting against hydrogen – Hydrogen is a losing bet for investors interested in making money in the foreseeable future, according to Barry Norris, the founder and chief investment officer of UK hedge fund Argonaut Capital Partners. “It’s a complete waste of time, unfortunately,” London-based Norris told Bloomberg. The Argonaut CIO said he’s “skeptical that the business models of a lot of these companies will work”. “There’s a massive capital cost in hydrogen, which is building the electrolyser,” Norris said. “In order to pay back on that capital cost, capacity utilisation has to be very high. So you have to have a stable, consistent source of power that is producing hydrogen in the electrolyser.” But the only form of hydrogen generation that’s “remotely competitive in terms of cost is that which is produced either by fossil fuels, hydro, or nuclear energy,” according to Norris. “If you have hydrogen produced by weather-dependent power, your capacity utilisation is going to be structurally much lower than that produced by base load power.” That’s why he’s built “a few shorts in hydrogen”, he said, referring to bets that share prices will fall. He declined to specify which companies his short positions target. It’s the latest salvo in a controversial corner of green technology that, depending on who’s asked, is either a crucial piece in the puzzle to reduce GHG emissions or an over-priced, over-hyped distraction. For now, even card-carrying hydrogen evangelists are having to take a few steps back, as they await detailed guidance on how to take advantage of subsidies, including those locked in the US Inflation Reduction Act.

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