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TOP STORIES
US EPA not concerned about renewable diesel surge overshooting RFS mandates -official
A recent deluge of biomass-based diesel supply that is hammering RIN prices does not currently present a lot of concern to the US EPA, as the agency decided on its Renewable Fuel Standard (RFS) volumes through an assessment of feedstock availability, a government official said Thursday.
Analysts see “mixed bag” for D4 RIN price direction, tight D3 market fundamentals
Biomass-based diesel (D4) RIN prices under the US Renewable Fuel Standard (RFS) may experience countervailing influences in the next couple years, while the market for the D3 category largely filled by renewable natural gas should remain tight, analysts said Thursday.
EMEA
EU businesses raise alarm over red tape cost impact as CBAM launch looms
European importers face rising prices and administrative bottlenecks as the EU’s new carbon border adjustment mechanism (CBAM) comes into effect from next month, according to a think-tank report published on Thursday that surveyed businesses.
EU to launch plan to speed bloc’s deployment of heat pumps as industry flags drop in sales
An EU action plan to boost the deployment of heat pumps is currently in the making, the bloc’s energy commissioner Kadri Simson announced on Thursday in a move that could mean lower launch carbon prices for the bloc’s second ETS in the coming years.
Euro Markets: EUAs snap three-day losing streak as carbon-gas price correlation increases
European carbon prices climbed moderately in choppy Thursday trade, underpinned by a strengthening link to gas prices as well as a second strong auction in a row, as participants continued to speculate over investment funds’ likely positioning in the coming days, while energy markets were firmer amid gas supply interruptions in the North Sea.
Direct air capture startup joins Oman mineralisation project
A direct air capture company has joined forces with a carbon mineralisation firm to initially remove 500 tonnes of CO2 per year to be permanently stored in rock from a project in Oman, they announced Thursday.
VOLUNTARY
French investment firm and carbon project developer unveil plan to invest billions into forestry projects
A French private investment house and nature-based carbon project developer have announced details of their plan to invest €1.5 billion in forest carbon projects that will sequester an estimated 150 MtCO2, the two firms said Thursday.
Singaporean tech company inks first offtake deal for REDD projects in PNG
A Singaporean tech company has potentially inked its first offtake deal for carbon credits as it seeks to develop over 5.3 million hectares of deforestation avoidance projects in Papua New Guinea (PNG) that are estimated to produce almost 159 million carbon credits annually, it announced Thursday.
CIX proposes to add another REDD project for its NBS assessment, brokers say market fragmenting
Climate Impact X (CIX) has proposed adding another REDD project for inclusion in its daily benchmark assessment of the sector, at a time when over-the-counter brokers say the market is becoming more fragmented.
Fossil fuel firms, carmakers account for vast majority of carbon credits bought by companies with climate targets
Fossil fuel companies and carmakers account for the highest proportion of carbon credit purchases among the world’s top 50 firms with net zero targets, though only 8% of the units purchased by that cohort were from CO2 removal projects, according to an analysis released Thursday.
Advisory firm beefs up platform to aid carbon credit investors
A carbon markets advisory firm has launched upgrades to its carbon risk platform, adding carbon project scrutiny, delivery risk, and secondary market price mapping tools as corporates have grown more wary about the types of units they buy.
ASIA PACIFIC
CN Markets: CEAs extend all-time high with stable volumes, growing momentum expected
Chinese carbon permits continued to climb over the past week amid stable trading volumes, reaching a fresh record high on Wednesday ahead of a week-long holiday, with analysts expecting the growing momentum to continue to the end of the compliance period despite government measures to suppress prices.
Japanese trading firm to back millions of forest offsets with 3D measurement system
One of Japan’s major trading houses has teamed up with a software provider to help create millions of domestically issued forest-based offsets based on a 3D measurement system, it announced Thursday.
Australia satellite imagery upgrades represent the next fight in ACCU integrity space, expert says
A shift to a new and improved satellite monitoring system will likely raise fresh issues with the carbon crediting of Australian human-induced regeneration (HIR) projects, according to an expert.
AMERICAS
WCI Markets: CCAs, WCAs fall for second week in a row amidst wider uncertainty
California Carbon Allowances (CCAs) waned for the second week in a row in both price and volume as wider macroeconomic issues and market dynamics clouded trading, while Washington Carbon Allowances (WCAs) also continued their drop over the same period with a sense of distrust in the young cap-and-trade system persisting.
Lumber firm, carbon storage company plan CCS hub in US southern state
A US-based CO2 storage provider on Thursday announced partnering with a legacy timberland firm to set up a carbon capture and sequestration (CCS) hub beneath managed forest acreage, conveniently located in a southern state near large stationary CO2 emitting sources.
INTERNATIONAL
Miners must do far more to align global critical mineral development with emissions targets, report says
A US-based think-tank has suggested better ESG practices, lower emissions technologies, and practices to conserve biodiversity near mines could have far-reaching implications for social licence and ultimately mine permitting, leading to faster development of the critical minerals needed for the world to meet net-zero goals.
CO2 yet to decouple entirely from GDP growth, rating agency says
While the link between global CO2 emissions and GDP growth is getting weaker, it has yet to decouple entirely, said a research note published Thursday.
BIODIVERSITY (FREE TO READ)
Gold Standard joins France-based group to develop biodiversity certification methodology
Carbon credit standard body Gold Standard has announced it has joined several prominent companies and institutions to work on biodiversity crediting approaches, following other carbon standards that recently released draft methodologies.
IDB launches nature, climate financing mechanism
The Inter-American Development Bank (IDB) has become the first multilateral development bank to pilot a financing tool that rewards countries for achieving nature and climate goals, it announced Wednesday.
UK group rates construction supply chain materials as ‘low’ biodiversity impact
Four major global materials in the supply chain of construction firms have relatively low biodiversity impacts, though the built environment overall still rely on ecologically destructive processes, a UK industry-led members network said Thursday.
Biodiversity Pulse: Thursday September 28, 2023
A twice-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).
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CONFERENCES
Carbon Forward 2023 – Oct. 11-13, London: Join us for Europe’s pre-eminent carbon markets conference, covering the EU and UK ETS as well as international voluntary markets and compliance schemes elsewhere in the world. The event brings together attendees from all related sectors, including traders and intermediaries, big emitters, financiers, project developers, analysts, consultants, NGOs, and government representatives. Topics to be covered include carbon pricing regimes globally, investment opportunities, Article 6 cooperation, CBAM, net zero strategies, and de-risking the voluntary carbon markets. Passes are going fast to secure yours today!
Private Land Conservation Conference | Unite for Nature – Oct. 16-18, Canberra: Nature has been elevated to the world stage and the Australian Land Conservation Alliance’s Private Land Conservation plays a crucial role in exploring the challenges and solutions as we navigate the transition to a nature positive future. Featuring Australian and international conservation practitioners, policy experts, business, finance and industry leaders, landholders, and First Nations groups on the frontlines of conservation, the conference explores pathways to reversing nature loss. To register: www.alcaconference.org.au/registration
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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
Dominant share – US energy secretary Jennifer Granholm has warned that transitioning from fossil fuels will make energy security infinitely more complex because of China’s stranglehold on the processing of critical minerals essential for renewable power, the FT reports. China dominates the cobalt, rare earths, and graphite industries, which are vital for renewable energy, electric cars, and defence technologies. Its global market share for the refining of each of those three materials exceeds 70%. “In this critical minerals context, we are up against a dominant supplier that is willing to weaponise market power for political gain,” said Granholm, speaking at an IEA summit in Paris on Thursday, in remarks widely interpreted as referring to Beijing’s power.
EMEA
Carbon coffers – A large part of Germany’s revenue from the increasing national carbon price on fuel for transport and heating could be passed on to the country’s citizens from 2025, said finance minister Christian Lindner of the liberal FDP party. He said that, in 2025, Germany expects €13 bln in revenue from the national carbon price. If it were only up to his ministry, a larger part of this would be paid out to citizens per capita, he added. (Clean Energy Wire)
Capping the grid – France is exploring ways to cap national electricity prices without falling foul of EU subsidy rules, including a possible windfall levy to deliver President Emmanuel Macron’s pledge to take back control of prices, the FT reports. One option reportedly under consideration is for the state to collect and redistribute some of nuclear power producer EDF’s revenues. Such a move would echo emergency measures authorised by Brussels during the energy crisis to collect excess profits when prices soared. The mechanism would involve setting a ceiling for the price at which state-owned EDF sold its nuclear energy, including to other electricity distributors and industrial groups. Revenues above that threshold would revert to the government and be distributed back to end users.
Keeping the lights on – There is a lower risk of electricity blackouts this winter in the UK compared to last, according to National Grid, thanks to increased generation and the ability to manage demand. This year, the UK stands in a different position, the energy firm said in a report. Chances of the lights going out are almost back to where they were before the energy crisis, it said, but a scheme to pay people for cutting electricity use at peak times will still be used to help manage demand. (BBC)
New entry – German investment bank Berenberg is entering the arena of European carbon emissions trading, looking to serve shipping companies that want to trade their EUAs from 2024 onwards. Shipping companies will be required to surrender carbon allowances in Sep. 2025 for their European voyages in 2024 under the EU ETS, and Berenberg sees opportunity in meeting this market need. (TradeWinds)
Euros for impact – La Banque Postale is launching a €1 bln impact infrastructure debt fund, focused on the energy transition, together with affiliated entities LBP AM and CNP Assurances. The fund’s core emphasis will include renewable energy, the circular economy, clean transport, and energy efficiency, whilst it will also look into green hydrogen and energy storage. It will be tagged under Article 8 in accordance with Europe’s Sustainable Finance Disclosures Regulation (SFDR) regulation. (Fintech Global)
AMERICAS
It’s taxing – A new Leger poll found 55% of Canadians surveyed want Canada’s carbon tax reduced (18%) or abolished (37%), while 27% were fine to keep it as is, with only 18% on board with raising levies every year, the National Post reported Thursday. The survey was conducted online of nearly 1,600 Canadians weighted by factors such as age, gender, mother tongue, religion, and education, so as to gather a better population sample. From a regional standpoint, 48% of Atlantic Canadians, who have been subject to federal carbon taxes since July 1, favoured totally abolishing carbon pricing. The average Canadian is shelling 14 cents/litre of gasoline towards carbon taxes, and 17 cents/litre of diesel, both rising automatically by 3 cents/litre per year. The Parliamentary Budget Officer determined that, despite federal tax rebates, most Canadian households will be experiencing a net loss from carbon pricing by 2030, with Albertans estimating net costs at C$507/household. Similarly, 52% of respondents had not even heard of the federal government’s net zero emissions plan by 2050, with a mere 15% considering the government’s plan realistic.
O Canada – Carbon Removal Canada – an independent, non-profit policy initiative focused on rapidly and responsibly scaling up carbon dioxide removal (CDR) in the country – is officially launching Nov. 8 in Ottawa, Canada. David Keith, founder of Carbon Engineering, will provide a keynote, followed by a panel of Canadian private sector leaders in CDR moderated by Na’im Merchant, co-founder and executive director of Carbon Removal Canada.
Mining meets carbon management CO2 Lock, a carbon dioxide storage startup and subsidiary of Vancouver-based mining company FPX Nickel, raised $1.1 mln in its latest funding round through a Simple Agreement for Future Equity (SAFE). The funding will support field work and sample collection at CO2 Lock’s project site in northern British Columbia, where it is working on the use of ultramafic rocks and the mineral brucite for ex-situ CO2 removal alongside study of in-situ CO2 storage and sequestration via injection.
A resilient USA – The Biden-Harris Administration announced a suite of climate resilience measures Thursday, including the National Climate Resilience Framework to guide investment and activity, the White House Summit on Building Climate Resilient Communities, and more than $500 mln in dedicated funding to climate resilience. Focus areas to receive funding include building and energy infrastructure, development of community climate resilience centres, bolstering workforces, and strengthening land and water resources.
Advocacy cuts – US-headquartered environmental non-profit National Resources Defense Council (NRDC) announced layoffs of 6% of staff, or fewer than 40 people, including 11 who have chosen voluntary retirement in the face of external economic headwinds, the company said on Thursday. The reset was part of cost-cutting efforts to balance the budget, and a last course of action after having exhausted other pathways, such as discretionary cuts and other salary-saving measures, the company said. The organisation was reshaping to priority initiatives, embedding equity more deeply, evolving teams, elevating long-time staff into new leadership roles, and paring back some areas of work. (E&E News)
ASIA PACIFIC
We’re getting to it – Australian Prime Minister Anthony Albanese has signalled he will do more to accelerate the country’s transition to low emissions after the Indigenous voice referendum has concluded, the Guardian reports. He said the ‘right decisions’ were needed to ensure that Australia emerges a winner in the global race to renewable energy. There has been speculation for some months that Labor is working up a domestic version of the Biden Administration’s IRA. The May budget allocated A$5.6 mln ($3.5 mln) for analysis on the intensifying global competition for clean energy and the implications this has for Australia. The budget also flagged new actions by the end of the new year to further catalyse clean energy industries, attract capital investment, and ensure Australian manufacturing competitiveness. The Guardian said the Albanese government is working up potential incentives to ensure capital for the clean energy transition remains in the country, rather than chasing attractive investment opportunities in the US.
Low-carbon steel – Japan’s Nippon Steel on Thursday announced that its low-carbon steel products will be used in the “85 Degrees Renewables Bleiswijk”, a geothermal project in the western part of the Netherlands. The product, named NSCarbolex Neutral, will contribute to CO2 reduction in the upstream production process, according to the company statement. Meanwhile, South Korea’s Posco is also promoting the country’s first low-carbon steel products and has supplied such low-emissions steel to domestic clients including LG Electronics.
VOLUNTARY
Cool credits – Danish carbon credit standard Carbon Clear and Nigerian solar-powered refrigerator company Koolboks announced Thursday a partnership for the development and sale of Micro Carbon Avoidance (MAC) credits. Under the partnership, Carbon Clear will generate MCAs through the integration of Koolboks’s monitoring software into its distributed ledger system. The carbon calculations undertaken as part of this process adhere to a Clean Development Mechanism (CDM) methodology and undergo third-party verification by DNV, according to a press release. Koolboks’s refrigeration units are engineered to be portable, robust, and energy-efficient, making them useful in regions with limited or unreliable access to electricity.
AND FINALLY…
From the darkness – Indigenous farmers in the Amazon have been using a unique soil-cultivation technique involving “dark earth” for centuries, according to archaeological evidence reported in New Scientist. This dark earth, rich in organic material and nutrients, is produced by spreading charcoal, ash, and organic waste like fish and manioc scraps. Researchers, led by Samuel Goldberg at the University of Miami, compared modern and ancient soil samples and found striking similarities in their chemical composition. The nutrient-rich soil not only provides a solution to the Amazon’s typically infertile soil, but also serves as a significant carbon store, similar to the amount stored in the rainforest canopy. This long-standing practice offers insights into how soil carbon storage could be an effective way to combat climate change, researchers said. However, the stored carbon is at risk of being released through global warming or unsustainable agricultural practices.
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