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TOP STORY

Brazilian Senate committee passes ETS legislation following deal to exempt agriculture

A Brazil Senate committee on Wednesday by a unanimous vote approved cap-and-trade legislation supported by President Luiz Inacio Lula da Silva, and in the process incorporated a number of amendments to secure agricultural sector support and enshrine a timeline for compliance obligations to begin.

INTERNATIONAL

UN report sees governments, NGOs urge ambitious climate action ahead of COP28 global stocktake

The UN Framework Convention on Climate Change (UNFCCC) secretariat on Wednesday published a new synthesis report as stakeholders called to accelerate climate action through submissions that spanned almost 800 pages ahead of the conclusion of the first-ever global stocktake at COP28.

EMEA

Polish energy minister backs carbon removals inclusion in EU ETS before 2030

Poland’s deputy energy minister said Wednesday that his country would support including carbon removals in the EU ETS before 2030 while a campaign group opposed such a move, while the minister kept his cards close to his chest when pressed on coal phaseout details.

EU lawmakers set to clear prospective Commission candidates after getting “clarity” on climate issues

Both candidates to be the next EU commissioners for the European Green Deal and for climate action secured the support of party coordinators representing the required two-thirds majority of the European Parliament’s environment committee (ENVI), the committee chair said on Wednesday as observers reacted to the candidates’ backing of a 90% emissions cut target for 2040.

Germany allows coal plants to reopen ahead of winter as precaution

The German government approved on Wednesday a temporary extension of the country’s power generation supply reserve, allowing lignite plants to reopen as a precautionary instrument for demand peaks for the coming winter, though underlined that the nation’s 2030 coal phaseout target remains in play.

EU should speed up wind energy roll-out, strengthen renewables target to hit 1.5C goal, says NGO

A non-profit is urging the EU to more than double its yearly deployment of wind energy by 2030 in order to achieve the bloc’s 42.5% renewable energy target, while also advocating for the bloc to strengthen that goal to as much as 50% to better align with the Paris Agreement, according to a report released on Thursday that comes as the bloc is increasingly beset with issues that could hinder those ambitions.

Euro Markets: Dec-23s break upwards in afternoon rally as energy prices rebound, funds trim net short position

EUA benchmark futures broke back above the €80/t mark on Wednesday as they rebounded 2.5% in tracking a bullish energy complex, while exchange data showed investment funds trimmed their net short position by 13%, and fundamentals continued to filter in bearish mid-term signals.

ASIA PACIFIC

Singapore debuts criteria for international carbon credits

Singapore has set eligibility criteria for international carbon credits that emitters can use towards a part of their carbon tax compliance requirements, with Minister for Sustainability and the Environment Grace Fu outlining seven precepts during a Wednesday speech.

Australia to rejoin Green Climate Fund

The Australian government has decided to rejoin the Green Climate Fund and will make a “modest” contribution toward it, which will be announced at the end of the year, an official told Carbon Pulse.

Australia Market Roundup: Fortescue leads $380 mln US hydrogen company capital raise, ACCU issuance falls

Australian mining and energy company Fortescue has taken the lead investor role in a $380 million Series C capital raise by a US-based hydrogen company, as the issuance of Australian Carbon Credits Units (ACCUs) fell over the past week.

Japan’s Carbon EX opens registration for carbon trading, announces partnerships

A carbon exchange operated by one of Japan’s largest financial groups has started accepting formal registration for project developers while announcing a number of partnerships and operational details to underpin trading, a further step towards the full operation of the platform amid emerging domestic interest in carbon credits.

NZU stockpile static as participants’ holding units increases

The NZU stockpile has failed to budge between the June and September quarters, but the number of ETS participants holding units has increased, according to government figures.

Half of APAC’s expected $3 trillion spending on energy the next decade to go to wind, solar, consultants say

The Asia Pacific region will invest $3.3 trillion in power over the next 10 years of which about 50% will be reserved for wind and solar, while 12% will be designated for energy storage, a global energy consultancy said Wednesday.

Contradictions in Australia’s Safeguard Mechanism could make coal miners money -report

Australia’s open cut coal mines could receive a cash windfall in coming years as Australia’s reformed Safeguard Mechanism will let them generate credits under the scheme, a report said Wednesday.

AMERICAS

WCI carbon market compliance instrument glut nears 400 mln in Q3

The surplus of allowances and offsets in the linked California-Quebec carbon market came closer to reaching 400 mln during the third quarter, while entities shifted more units into compliance accounts, according to data published Wednesday.

Washington state increases free allowance allocation to electric utilities through 2026

The Washington Department of Ecology (ECY) increased its yearly allocation of no-cost allowances to electrical utilities under the state’s cap-and-trade programme by as much as 23% through 2026, as seen in its revised mid-year figures released Tuesday.

Weather forecaster says RGGI region to experience milder winter

The Northeast US will face mild temperatures this winter, lessening heating demand in the RGGI cap-and-trade programme region, a weather forecasting service said Wednesday.

Meeting US decarbonisation goals requires aggressive action across three domains –report

While the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) set policy and funding precedence for US decarbonisation, additional measures are necessary across three domains to cut GHG emissions by more than 40% by 2030 and nearly 90% by 2050 relative to 2005 levels, a report said Wednesday.

VOLUNTARY

Energy firms formally launch ‘conservative and comprehensive’ voluntary BECCS methodology

British and Swedish energy companies have unveiled the details of what they describe as a “conservative” methodology for voluntary bioenergy with carbon capture and storage (BECCS) projects and the first comprehensive market-ready version for the technology, as they hope it becomes an industry standard for the issuance of carbon credits from such activities.

UK registry launches ‘most stringent’ CDR certification standard in the world

A UK-headquartered registry for long-duration CO2 removal (CDR) has launched its certification standard which it says is the most stringent in the world and where the results are open to public scrutiny.

“Important milestone” achieved in development of energy-efficient DAC technology

Researchers have announced what they call an “important milestone” in the development of direct air capture (DAC) technology, operating their energy-efficient CO2 absorption system for 10,000 hours.

BIODIVERSITY (FREE TO READ)

Global initiative targets $12 bln in public, private finance to protect and restore coral reefs

An international network that includes 45 countries has launched the Coral Reef Breakthrough, planning to raise at least $12 billion in public and private finance this decade to stop the drivers of coral reef loss and accelerate restoration.

French nature fund opens applications for biodiversity projects

The ‘MAIF pour le vivant – Nature 2050’ fund has opened a call for projects across mainland France and its overseas territories that contribute to the adaptation of territories to climate change and act to preserve biodiversity by relying on nature-based solutions.

Environment Bank markets biodiversity credits through equity shares to avoid inertia

UK-headquartered conservation company Environment Bank is marketing voluntary biodiversity credits through a “biodiversity equity shares” system to encourage demand, an executive has said.

ASEAN launches regional invasive species action plan, lacks detail on financing

The Association of Southeast Asian Nations (ASEAN) has set out a transboundary action plan to address invasive alien species across the region, however, no detail was provided on how it would be financed or the delivery partners that would lead its components.

Responsible investor group launches new initiative to drive corporate engagement on biodiversity loss

A new initiative on nature stewardship will initially focus on forests and land degradation and aims to ramp up pressure on companies to disclose nature-related risks and engage politically.

Spirits producer distills American butterfly protection programme

The Americas branch of spirits producer Remy Cointreau has teamed up with WWF-Mexico to protect and regenerate the Monarch butterfly across the Americas.

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CONFERENCES

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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

Prepare for the plan – Sultan Al-Jaber, president-designate of this year’s UN climate summit, said the oil and gas industry must prepare for an inevitable phase down of fossil fuels as he warned the sector should not be seen to work against decarbonisation efforts. Speaking to the Financial Times, Al-Jaber — who is also head of the UAE state oil firm — said he is in talks with fossil fuel producers about an initiative focused on cutting GHGs that is due to be launched at COP28 in Dubai later this year.

Bless Him – The Vatican is calling for a faster phase out of fossil fuels, with an apostolic exhortation Pope Francis released on Wednesday in view of COP28 in Dubai. “The necessary transition towards clean energy sources such as wind and solar energy, and the abandonment of fossil fuels, is not progressing at the necessary speed,” he wrote, noting that gas and oil companies are planning new projects in the UAE. “To say that there is nothing to hope for would be suicidal, for it would mean exposing all humanity, especially the poorest, to the worst impacts of climate change.” Mariam Kemple Hardy, global campaigns manager at research organisation Oil Change International, welcomed the Pope’s intervention: “Global leaders meeting in Dubai for COP28 must heed the Pope’s call to agree to a just and equitable phaseout of all fossil fuels and a transition to renewable energy, with adequate financial support for impacted countries”, or else “COP28 will be a failure”. The Pope is not new to statements in defence of climate and had already warned on the use of carbon credits in the past: read our story.

ASIA PACIFIC

Seeking interest – The Western Australian state government is seeking registrations of interest (ROI) from large commercial and industrial users on their plans for low-emissions electricity and renewable energy projects to supply major projects in the state’s grid, it announced. The ROIs will be used to inform how and when future transmission builds for the South West Interconnected System could happen and where renewable energy hubs could be located. It added that the ROIs help prioritise areas for grid investment, and establish a customer base that will shape future major transmission expansion projects.

Green investments – India’s quasi-sovereign wealth fund, the National Investment and Infrastructure Fund (NIIF), and the Japan Bank for International Cooperation (JBIC) on Wednesday launched a $600-mln fund to invest in sustainability projects, Reuters reports. The India-Japan fund will target green projects associated with areas including renewable energy, e-mobility, and waste management, NIIF said in a statement.

Costs revealed – Auto component maker Unipres Corporation is planning to gradually introduce an internal carbon pricing system to group companies in order to reduce the environmental impact of its emissions, the Japanese company said in a statement. The fee has been set at 18,000 yen ($120.67) per tonne of CO₂, and the internal carbon costs should be taken into account when making investment decisions, Unipres said.

Green fund – India’s Northern Arc Capital is planning to launch a $100 mln green private credit fund by December to seek opportunities in green companies in the South Asian country. The fund will be backed by Leapfrog Investments and will operate from the state of Gujarat, Bloomberg reported Tuesday. The fund’s main investment targets will be rooftop solar solutions, electric cars, and battery swapping, the company’s CEO told Bloomberg.

AMERICAS

Wab Kinew do for you – Provincial New Democratic Party (NDP) leader Wab Kinew was elected Manitoba’s premier Tuesday, ousting the Progressive Conservatives after seven years in power. Under NDP leadership, Manitoba will not go to court over federal carbon pricing, contrary to the momentum of the former government. As leader of the opposition during the province’s 2019 elections, Kinew proposed a flat C$20 carbon tax, which ran against the federal Liberals’ ‘backstop’ mandate of a CO2 price that rose by C$10 annually until hitting C$50 in 2022. Kinew’s present campaign made no reference to carbon pricing, and instead pledged to freeze utility rates, eliminate a provincial fuel tax, and provide rebates for electric and hybrid vehicles. While the NDP has committed to a net zero by 2050 strategy, the climate promises are not yet backed by funding. (The Narwhal)

One bid for three – Connecticut, Massachusetts, and Rhode Island have signed a memorandum of understanding to jointly consider bids for offshore wind projects with the aim to reduce costs and boost clean energy development in the states, E&E reports. The move by the state comes at a critical time as US offshore wind developers struggle to renegotiate power contracts amid rising inflation rates and supply chain shortages, although state officials maintained that their decision to collaborate represented an attempt to build on previous state collaborations to drive renewable deployment and reduce emissions in New England.

Colombia collaboration ­– Indigenous community leaders of REDD+ projects in Colombia signed a declaration to ensure collaboration, transparency, and education regarding future carbon projects, following proceedings of the 5^th Climate Summit of Colombia and Latin America held in Cali, according to a release issued Wednesday. The declaration outlined a number of high-level mechanisms to ensure equitable participation of Indigenous communities in future REDD+ projects, including collaborative decision-making regarding REDD+ projects, direct collection of carbon taxes by community leaders, and ensuring “no measures are taken that impact communities without their participation.”

Milestone acquisition – New York-based private investment firm SK Capital Partners has acquired Houston-headquartered environmental services and carbon management company Milestone Environmental Services through its affiliates, according to a Wednesday press release. SK Capital acquired Milestone from Amberjack Capital Partners, and Gabriel Rio will continue to serve as Milestone’s President and CEO. In the press release, SK Capital said that Milestone has the strategy, capabilities, and operational track record to play a major role in the rapidly growing carbon capture and sequestration (CCS) market. 

EMEA

Call the whole JETP off – South Africa’s National Union of Mineworkers (NUM) has called on the government to suspend the $8.5 bln Just Energy Transition Partnership and for more consultation on restructuring the state-owned utility Eskom into generation, transmission and distribution arms. The NUM is the largest union representing staff employed by Eskom. Opposition to the retirement of old coal plants and a transition to renewables has been embraced by the Minister for Energy, Gwede Mantashe, and, to a lesser extent, the Minister for Electricity, Kgosientsho Ramokgopa. A recent focal point for opposition to a just transition was the closure in Oct. 2022 of the Komati coal plant and its repurposing for renewables projects. Melissa Fourie, a member of South Africa’s Presidential Climate Commission, told a meeting of the commission last week that Eskom’s plan for decommissioning Komati was developed too late, with a lack of proper consultation with the local community and early development of new employment opportunities. In the wake of the NUM’s call, Ramokgopa said there are no further plans to close Eskom coal plants to be replaced by renewables. (Coal Wire)

Served – British environmentalist and broadcaster Chris Packham is set to mount a legal challenge against UK Prime Minister Rishi Sunak over recent rollbacks to the country’s net zero policies. Sunak recently announced a five-year delay on the ban of new petrol and diesel car sales, moving it from 2030 to 2035. He also delayed a ban on oil boilers in off-grid homes to 2035 and weakened plans to phase out domestic gas boilers. Additionally, the government delayed biodiversity requirements on housing developers and approved the North Sea’s largest undeveloped oil and gas field. Packham accused Sunak of “reckless and irresponsible” behaviour and has given the government two weeks to reverse these decisions before escalating to the High Court. Packham also noted that the policy changes contradict the UK’s Carbon Budget Delivery Plans. This comes as other environmental groups are also legally challenging the UK government’s updated net-zero strategy. (edie)

AND FINALLY…

Hot or not – A study led by Britain’s University of Exeter found that hot weather negatively impacts worker productivity, even in air-conditioned environments. The research, conducted at a high-tech factory in China, revealed that for every 1C increase in outdoor temperature, worker productivity dropped by 0.83%. Both night-time and daytime heat were found to affect productivity. The study used data from 35,190 worker-shifts in a factory producing silicon wafers, which require a climate-controlled environment for quality assurance. The findings challenge the assumption that climate-controlled buildings can fully mitigate the productivity losses associated with rising global temperatures.

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