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TOP STORY
Designated EU climate chief commits to science for 2040 targets
EU commissioner-designate for climate action Wopke Hoekstra on Monday stated that he will act in line with scientific advice on the bloc’s climate targets for 2040, while professing his love for the bloc’s carbon market.
INTERNATIONAL
UAE offers to host UN climate summit in 2024, with fossil fuel firms poised to ramp up carbon capture and net zero targets
The UAE has offered to host the annual UN climate summit for a second consecutive year with Russia blocking Armenia and Azerbaijan’s proposals for the 2024 event, according to media reports, as the Middle Eastern nation’s state oil company doubles its carbon capture goal.
IMF calls on governments to set minimum carbon prices alongside climate spending
Policymakers around the world must work together to tackle climate change by setting minimum carbon prices as well as removing trade barriers, avoiding subsidy races, and finding ways to “crowd-in” private financing, the International Monetary Fund said on Monday.
VOLUNTARY
Corporates found to need more guidance on mitigation claims for science-based targets
Global companies need clearer guidance on what ‘beyond value chain mitigation’ is and which claims they can make make based on their actions, according to a public consultation process carried out by the Science-Based Targets initiative (SBTi).
VCM Report: Diverse REDD pricing creates odd backwardation in nearby curve as CME’s N-GEO future tumbles
Nearby nature-based carbon credit futures tumbled over the past week to create backwardation between the spot and the December future, as much of the rest of the market was little changed despite relatively strong volumes.
New research reveals boreal, temperate forests as world’s main carbon sinks, challenging existing findings
New research has redefined scientists’ understanding of global carbon sinks, revealing that boreal and temperate forests are now the leading contributors to the capture of atmospheric CO2, while challenging existing findings on absorption by tropical forests.
Wetland conservation most effective ocean-based climate solution, research finds
Wetland conservation has the highest potential impact for mitigating climate change when compared with alternative ocean-based solutions, according to researchers at a British university, with the report proposing cost-per-tonne levels across different activities to ensure the protection of such ecosystems.
ICVCM expert views voluntary carbon market oversight not purview of CFTC
The US Commodities Futures Trading Commission (CFTC) lacks the expertise to create standards for the voluntary carbon market (VCM), a member of the industry’s private sector governance body argued, while some experts were not convinced the Council’s upcoming Core Carbon Principles (CCP) labelled credits will be the silver bullet the sector anticipated.
Swiss carbon capture firm opens first commercial site in Europe
A Swiss climate tech firm has announced the opening of its first commercial site for permanent CO2 storage in the EU, located in Berlin.
ASIA PACIFIC
Scientists sound alarm over recent soil ACCU issuances
A group of Australian scientists have raised “serious concerns” that Australian Carbon Credit Units (ACCUs) generated from soil carbon projects could be overinflated and based on non-additional activities, urging the Clean Energy Regulator to release its data on how it calculates its crediting.
Vietnamese firm launches carbon credit trading platform
Vietnam has taken further steps towards a more comprehensive voluntary carbon market as tech and real estate firm CT Group launched the ASEAN Carbon Credit Exchange Joint Stock Company (CCTPA) in southern business hub Ho Chi Minh City.
New Zealand govt defends new ETS service fees, annual forestry charge
New Zealand’s Ministry of Primary Industries (MPI) has defended its move to introduce annual fees per hectare of forest and a range of service charges in the ETS, arguing the funds accrued will be essential to maintain the integrity of the scheme.
Working group to consider carbon credit eligibility in Japan’s GX League trading scheme
The government of Japan has established three working groups to promote its nationwide decarbonisation initiative, including a task force to discuss the eligibility of carbon credits, laying the foundation for the world’s fifth-largest CO2 emitter to improve an emerging domestic carbon market.
Japanese banks wrestle with transition finance assessments
Financial institutions should use more diversified approaches and metrics to ensure an adequate evaluation of transition finance for the hard-to-abate sectors, an expert group of major Japanese banks has argued.
Indonesian oil company signs nature-based solution agreement with provincial government
The renewable energy subsidiary of Indonesian state oil company Pertamina over the weekend struck a “green economy” agreement with a provincial government that includes plans to identify and develop nature-based solutions (NBS) to generate carbon credits.
AMERICAS
US direct air capture company announces refusal to take oil and gas funds
A San Francisco-based direct air capture (DAC) company on Monday revealed its principles for “high-road” CO2 removal (CDR), which include barring the use of fossil fuel revenues and raising barriers for energy industry involvement.
Innovative solutions can help tackle the additionality problem of clean energy procurement, experts say
Approaching clean energy (CE) procurement from the standpoint of an emissions first accounting framework, 24/7 reliability requirements, or a huge backlog of renewable generation builds that face supply chain issues are some considerations that could counter additionality concerns, a conference heard Monday.
Washington carbon market uncertainty yielding difficult trading conditions, clouding linkage prospects -participants
Washington state’s shifting of cap-and-trade reserve sale sizes this year has made it difficult to participate in the market, and the resulting instability poses a threat to the jurisdiction’s desire to link with the broader California-Quebec carbon market, traders said Monday.
RGGI Market: RGA prices stabilise following perplexing spike to Cost Containment Reserve trigger
RGGI Allowance (RGA) prices retreated after a surge that saw record-high values surpass the Cost Containment Reserve (CCR) trigger price in response to the latest Third Program Review meeting, as participants indicated that the market was stabilising after the unwarranted soar on Tuesday.
Washington Clean Fuel Standard sees Q1 credit surplus in first quarterly report
The Washington state Clean Fuel Standard (CFS) saw a surplus of units largely generated from ethanol in the programme’s inaugural quarterly credit generation figures, according to government data published Friday.
EMEA
EU fossil power generation slumps 21% over first nine months of 2023
Power generation covered by the EU ETS fell by more than one-fifth over the first nine months of 2023, compared to the same period last year, according to data collated by a research organisation, with weak demand and rising low-carbon output crushing fossil fuel burn.
Euro Markets: EUAs extend losses to settle at four-month low as demand outlook sees weak fossil burn
European carbon fell on Monday morning, dropping to an eight-day low as demand appeared to be retreating amid growing expectations that fossil burn will remain weak even at the start of the winter demand season, while energy prices also retreated as North Sea gas supply improved.
Bulgaria’s government eyes 2038 full coal exit in transition plan
Bulgaria’s government has submitted plans to the EU detailing how it will help coal-reliant regions phase out the fuel, aiming to run the country’s coal-fired power units until 2038 without setting dates for when each plant will be retired.
UK announces measures to support energy independence, shortlist for nuclear SMR expansion
UK energy minister Claire Coutinho announced Monday a shortlist of companies selected to build small-scale nuclear reactors in the country, alongside measures to boost rooftop solar expansion and energy efficiency investment, as she emphasised energy security and job creation in a speech to her party.
UAE bank signs strategic partnerships to supply carbon credits and scale regional trade
The largest bank in the UAE has signed two strategic partnerships for the supply of “high-quality” carbon credits in a further step to becoming the UAE’s carbon trading hub.
BIODIVERSITY (FREE TO READ)
Alliance calls for national plan as Australia fights losing battle against nature loss
An alliance of more than 20 organisations and companies has urged the Australian government to design a national restoration plan with targets and funding mechanisms to turn the tide as the nation’s ecosystem degradation and decline continue at scale.
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Job listings this week
- *Business Development Manager, Abatable – London (Hybrid)
- *Carbon Standards Specialist, Space Intelligence – Edinburgh
- *GHG Management, Environmental Specialist, First Environment – Sacramento
- *Project Administration Specialist, Climate Change, First Environment – Sacramento
- *EMEA Policy Editor, Carbon Pulse – Brussels/London/Remote (in Europe)
- Business Developer, Acorn – Utrecht
*Premium listings
Or click here to see all listings
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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
No response – The head of COP28, Sultan Al-Jaber, laid out his battle plan in July for the upcoming climate summit in Dubai, issuing a plea to all governments to raise climate targets by September. His appeal has gone totally unanswered, as no country has updated its nationally determined contributions (NDCs) since then. This comes as the UN restates the urgency of stepping up action, with current NDCs not collectively sufficient to limit warming to the Paris Agreement-aligned 1.5C, the Global Stocktake report said last month. (Climate Home)
Skill shortage – The lack of skilled labour is a drag on the global energy transition and could put UN climate targets at risk, says a report by BCG, as seen by a German newspaper. By 2030, there will be a global shortage of 7 mln skilled workers that would be needed for the necessary climate and energy projects, such as installing solar panels, heat pumps, EV charging stations, and wind farms. The resulting delay alone could lead to a global temperature increase of 0.1C, BCG warned. (Clean Energy Wire)
EMEA
Red tape – German companies have complained about highly complicated reporting obligations and a lack of preparation time for the introduction of the EU’s carbon border adjustment mechanism (CBAM), Clean Energy Wire reports. The first phase came into force Oct. 1 and involves reporting requirements, while levies are set to come into effect from 2026. The biggest challenge is requesting data from suppliers, and the EU only published details of the implementation of the scheme in mid-August, leaving companies with too little time to prepare, with smaller companies finding it particularly difficult.
Hefty bill – British exporters face hundreds of millions of pounds in EU carbon border taxes over the next decade as the CBAM gets phased in, which will penalise countries with substantially lower carbon prices than the bloc’s. This comes to the detriment of the UK Treasury that would otherwise have received that revenue were the price of UKAs higher. The price for the UK ETS reached a record low of £33/tonne last week, following Rishi Sunak’s speech that watered down climate provisions, compared to the current price in the EU ETS, trading in excess of €80. UK manufacturing companies will thus be paying significant taxes to their largest market, which will go into the EU budget, when once it would have gone to the exchequer, according to Energy UK. CBAM will be phased in from 2026, reaching full strength by 2034, but exporters to the bloc have been subject to reporting the emissions embedded in their products since yesterday. (FT)
Green is the colour – Ireland has made a bold move in the name of climate action by rejecting a new fossil fuel import facility, Bloomberg reports. The country’s planning authority last month refused a proposal for an LNG import terminal on the Shannon estuary and a related gas-fired power plant, after taking into consideration policies outlined in Ireland’s energy and climate action plan. The strategy calls for the country to reduce GHG emissions annually by 7% on average between 2021-30. Unlike the rest of Europe, Ireland appears to be pushing ahead with its zero carbon transition policy, despite energy shocks last year that left most European countries, such as Germany, the UK, and France, scrambling for more, not less, LNG.
Fico friend – The victory of pro-Russia Robert Fico in Slovakia’s elections will cause concern among pro-EU observers, EurActiv reports. Although the formation of a government is still to be seen, calls for Europe to wake up are increasing amid mounting fears over AI misinformation campaigns. Hungary welcomed the election result, and it is likely that Fico’s Smer party will oppose further EU support for Ukraine.
You’re a Hystar – A company that makes electrolysers to produce hydrogen is planning to develop what will be one of the world’s largest factories in Norway, in a sign of the growth of the industry, the FT reports. Norwegian company Hystar is planning to expand its plant in Hovik, near Oslo, to a capacity of 4 GW a year, up from 50 MW today. Electrolysers are used to split hydrogen from water and are in growing demand as countries around the world look to start replacing fossil fuels with hydrogen. Hystar is also in talks over developing a large new factory in the US, encouraged by the support on offer for hydrogen development in the Inflation Reduction Act.
ASIA PACIFIC
Sunny side – The Australian government has approved the 600 MW Smoky Creed solar farm, developed by Edify Energy, in central Queensland, Renew Economy reports. The farm is expected to generate up to 1.19 mln MWh of electricity a year, the equivalent to the power needs of more than 200,000 homes. The government estimates it will stop almost 1 MtCO2e of emissions from entering the atmosphere. The project could possibly expand to a larger size and will likely need a battery storage component, although that has yet to be specified.
Green funding – The Asian Development Bank (ADB) has approved a $300 mln equivalent loan to catalyse green and inclusive transformation in Changzhi municipality in China’s Shanxi province, it said in a statement. Changzhi’s highly vulnerable economy is largely dominated by coal, and the transformation project aims to reduce carbon emissions while strengthening green small- and medium-sized enterprises. Knowledge gained from the initiative, likely benefiting more than 1.4 mln people, will serve as a model for replication in other heavy-industry regions, ADB said. (Reuters)
New green hope – Singapore’s exchange launched its first ammonia swap and futures contracts Monday, according to Reuters. While ammonia is a common feedstock for fertiliser and explosives, interest in it as a source of energy is growing, given it can be produced from green hydrogen. The two futures contracts start this month and can be traded for up to 24 consecutive contract months.
Expert detainment – The director of an independent energy policy think tank has been arrested in Vietnam, marking the sixth expert working on environmental issues to be taken into custody in the past two years. Ngo Thi To Nhien, executive director of the Hanoi-based Vietnam Initiative for Energy Transition (Viet), had been working on the implementation plan for Vietnam’s just energy transition partnership (JETP), a $15 bln G7-funded project to help wean Vietnam off fossil fuels, and was often in contact with international organisations such as the World Bank, EU, and the Asian Development Bank. Should she be charged, she faces up to up five years in prison, according to the country’s criminal code. The Vietnamese government has shown little appetite for dissenting voices on environmental issues, reports The Guardian.
AMERICAS
Winds of worry – Six Democratic governors from the northeastern US have written a letter to President Joe Biden urging him to offer more subsidies to offshore wind projects across the region, Politico reports. The group of governors includes New York’s Kathy Hochul, New Jersey’s Phil Murphy, and Maryland’s Wes Moore. Energy companies have warned that project costs are increasing and that some wind farms won’t survive without support. The governors share the Biden administration’s view on the value of wind energy and have been dealing with the issue for months. Now, they are taking the issue public to call the administration to action after months of conversations between state-level staffers and Biden administration.
Furnace standard update – The US Department of Energy (DOE) finalised its energy efficiency standards for residential gas furnaces to bring down household utility costs by $1.5 bln annually while reducing GHG emissions. The congressionally-mandated standard will take effect in late 2028 and will save $24.8 bln over 30 years in utility prices by requiring non-weatherised gas furnaces, as well as those used in mobile homes, to ensure a fuel utilisation efficiency of 95% every year. Residential gas furnaces account for approximately 19% of annual residential energy use in the country, and DOE expects that updating these appliance efficiency standards – previously updated in 2007 – will lower carbon and methane emissions by 332 mln and 4.3 mln tonnes over 30 years, respectively.
Credits cash – Renewable fuels company Aemetis announced Monday the sale of $53 mln of Inflation Reduction Act (IRA) investment tax credits to a corporate purchaser. The transaction was the Aemetis’s first in IRA tax credits, which were generated from biogas projects built by Aemetis Biogas, including six dairy digesters, a biogas pipeline, and a renewable natural gas (RNG) production facility. Through its Five Year Plan, Aemetis expects to qualify for more than $800 mln of IRA investment and production tax credits during the next four years to support biogas projects, CO2 re-use by its ethanol plant, construction of a sustainable aviation fuel plant, and carbon sequestration.
VOLUNTARY
Short-term pain – Dutch Green Business (DGB) Group has seen its share price slide to €0.40, down almost 7% in the last five days, and almost 58% since the start of the year. The carbon project developer published half year results on Thursday that showed operating profit fell to a loss of €0.68 mln over the first six months of 2023, down from a loss of €0.46 mln for the same period a year earlier. The company, which manages 7 projects and is conducting feasibility studies on 12 more, has a pipeline of 44.9 mln credits in development. DGB’s gross credit sales over the next decade are projected to range from €79.8 mln to €160.8 mln. The company’s strategy of securing long-term offtake agreements for credits is expected to increase in 2023.
SCIENCE & TECH
Battery is better – According to research by Rystad Energy, battery electric vehicles (BEVs) are the most effective option for reducing CO2 in the transport sector, despite higher emissions during manufacturing and ongoing reliance on fossil fuels in some countries. The study shows that over their lifecycle, BEVs emit at most half the CO2e compared to internal combustion engine vehicles. This holds true even in countries where the power grid is primarily fossil fuel-based. The research accounts for every stage of vehicle manufacturing and operation, including fuel and electricity-related emissions. For instance, in China, a BEV will emit about 39 tCO2e over its lifetime, compared to nearly 85 t for an ICE vehicle. In the US, the numbers are 42 tCO2e for a BEV versus more than 100 t for an ICE vehicle. As power generation becomes greener, the emissions from BEVs could decrease even further. The study also highlights the role of a country’s power mix in determining the rate of emissions reduction achievable by switching to BEVs. For example, due to France’s reliance on nuclear power, the emissions from charging an electric vehicle there will be about 70% lower than in Germany, which uses gas generation more heavily. Annual driving distance, which varies by country, and the evolving nature of electricity generation were also factored into the study. The report concludes that even with the current power mix, adopting BEVs will significantly benefit the environment, especially in high-mileage countries like the US.
Certified ‘green’ – The largest operator of electrolysis technology in Europe, Ineos Inovyn, has become the first European company to have its renewable hydrogen fully audited with GHG data certification. The company’s Antwerp hydrogen production has been certified under the ISCC (International Sustainability & Carbon Certification) PLUS scheme, which is a global voluntary certification programme for bio-based, circular, and renewable raw materials across all markets. Ineos customers will benefit from being able to provide traceability of sustainable materials along their supply chains and for helping to reduce their Scope 3 emissions through the use of the renewable hydrogen. Ineos Inovyn produces 60,000 tonnes of low-carbon hydrogen across multiple sites, it said in a press release.
AND FINALLY…
Let them eat carbon – The University of Stirling has launched a £800,000 government-funded project aimed at developing a carbon-negative food source. The initiative will create four new jobs and support the construction of a new lab on the Isle of Bute, where a two-year trial has started. This trial, run in partnership with Mycorrhizal Systems, involves planting fungi with trees to create protein-rich mushrooms. If successful, the researchers believe the method could be replicated globally, providing a sustainable food source and creating thousands of jobs. The crop could feed nearly 19 million people a year worldwide, they said, and sequester up to 12.8 tonnes of CO2 per hectare annually. This stands in contrast to most food production systems, which emit GHGs. The project aims to help the UK meet its net zero targets and reduce dependency on imported food.
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