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TOP STORY
Methane emissions from LNG-powered ships double current assumptions, say researchers
Methane emissions from LNG-fueled ships may be on average double the level current EU and global regulations assume, a study has found, with demand only expected to grow for the gas.
EMEA
EU confirms it will present carbon management strategy next year
The European Commission confirmed on Friday that its carbon management strategy will be published early next year, defying some stakeholder expectations that the plan would be unveiled as soon as next month.
Euro Markets: Dec-23s edge sideways in uncertain market, as UKAs surge on govt auction volumes news
EUAs traded flat across the day in a thin range to chart a weekly 1.5% loss, with gas cited as the main driver amid a tentative market, while UK prices moved up as much as 6.9% on low liquidity, as traders responded the release of the 2024 auction schedule.
Sustainable fuels should be on EU’s strategic technologies list, says industry
Sustainable alternative fuels should be included on a list of ‘strategic technologies’ to be given priority treatment as part of the bloc’s clean technology industry bill, a group of EU industry associations said in a joint letter published on Friday.
Former Gabon minister Lee White arrested on allegations of corruption -media
Former Gabon environment minister Lee White and three other officials of the previous Ali Bongo-led government have been placed under house arrest, according to state media agency Agence Gabonaise de Presse (AGP), heightening current uncertainty around the forest-rich nation’s carbon policy.
UAE oil firm on course for 40% emissions rise by 2030, say researchers
The oil firm run by the head of COP28, Sultan Al-Jaber, is on course to increase emissions from its oil and gas operations by more than 40% by the end of the decade compared to 2023, an international NGO has calculated in a report published this week.
AMERICAS
Exxon not interested in Guyana’s remaining REDD+ credits -VP
Oil major ExxonMobil will not be buying any of Guyana’s forest-generated carbon credits, opting instead to invest in other climate change-mitigating measures in the country, the government said this week.
Washington offers lower current vintage auction volume in last quarterly sale of 2023
Washington’s Department of Ecology (ECY) reduced the volume of current vintage allowances on offer at its December auction compared to the Q3 sale, while also tendering future vintage allowances, according to a notice published Friday.
US EPA announces new measures to phase down climate-harming HFCs
The US Environmental Protection Agency (EPA) on Friday unveiled a series of actions to accelerate the phasedown of hydrofluorocarbons (HFCs) – the potent greenhouse gases commonly used in refrigeration and air conditioning systems.
Producers snag near-record weekly net holdings across North American carbon markets, financials favour 2024 vintages
Regulated parties saw historic weekly gains in V23 net holdings of California Carbon Allowances (CCAs) and RGGI Allowances (RGAs), while financial players favoured additions in V24s CCAs, but reduced net length in both V23s CCAs and RGGI, and both parties added to their Washington Carbon Allowance (WCA) holdings, according to US Commodities Futures Trading Commission (CFTC) data published Friday.
ASIA PACIFIC
Indian carbon projects falling short on community benefits, say researchers
Voluntary carbon credit projects in India do little to help local people or the climate and may even lead to more greenhouse gas emissions, researchers said in a report published this week following extensive site visits and stakeholder interviews.
Australian carbon markets participants lift their game, conduct review says, but work needed on First Nations engagement
A yearly review into Australia’s carbon industry has found a growing number of participants are meeting full compliance status, but there is room for improvement on how the sector engages with First Nations groups.
Japan, Malaysia pen cooperation on cross-border CCS
Malaysian state oil giant Petronas has signed a Memorandum of Cooperation (MoC) with Japanese government bodies to explore carbon capture and storage projects and the transboundary movement of liquified CO2.
VOLUNTARY
As forest carbon markets face “deep uncertainty” over MRV, academics advocate new approaches
In the high-stakes world of forest carbon markets, robust MRV has long been the cornerstone of perceived accuracy and integrity, but new research calls into question the very possibility of achieving reliable measurements in the sector.
Verra touts ramp up of digitisation, remote sensing in its carbon project activity
The world’s largest carbon credit standard will ramp up use of digitisation and technologies such as remote sensing, in order to improve transparency for market participants and monitor projects on an ongoing basis, a conference heard this week.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Peer review process can bring scientific credibility to the early biodiversity credit market, says new initiative
UK-based Biodiversity Futures Initiative (BFI) aims to provide scientific robustness to biodiversity credit projects and certifications, so buyers have confidence in outcomes and the projects have a greater impact on nature.
Biodiversity project developer eyes carbon exchange listings after Cercarbono deal
A company developing biodiversity credits in South America is in the closing stages of having its project methodology approved by standard body Cercarbono, after which it hopes to have its credits listed on two carbon trading platforms before the end of the year.
INTERVIEW: Indian startup bets on plastic credits market despite challenges
A recently launched environmental commodities asset management firm in India says the emerging market for plastic credits holds great promise for the South Asian nation, despite regulatory developments restricting market potential.
Global market for biodiversity credits unlikely, developer executive says
Biodiversity credits have a slim chance of becoming a global market larger than the voluntary carbon markets, according to an executive at a global carbon and biodiversity credit firm.
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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 so 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
Metal bonding – EU and US leaders are seeking to announce an interim deal at an Oct. 20 summit on steel and aluminum trade that would avert the re-imposition of Trump-era tariffs on billions of dollars of transatlantic commerce, Bloomberg reports, citing anonymous sources. A provisional political agreement would cover the two main planks of the so-called Global Steel and Aluminum Arrangement: tackling non-market excess capacity and carbon emissions. The EU would achieve the latter through the implementation of its carbon border adjustment mechanism, while the US could adopt its own duties or trade restrictions on dirty steel.
EMEA
Not enough – Climate action funding in France “must increase by more than €60 bln a year from 2030” for the country to be on track in financing the energy transition, said climate scientist Corinne Le Quere, speaking to EurActiv. The French government recently announced an increase of €7 bln in the budget allocated to the climate transition in 2024, but the country’s economic policy is not yet on track, she said. “The EU can no longer be content to legislate and regulate,” but must focus on a clear financing plan with Member States, she stressed.
Taxing wind – The Norwegian government has proposed introducing a basic interest tax on onshore wind from 2024, at an effective tax rate of 35%, lower than the level proposed last year, E24 reports. Municipalities would receive a larger share of income, but the wind industry believes that the proposal is not good enough to stimulate sufficient capacity expansion. The tax is to be introduced with transitional arrangements for existing facilities, an aspect of the proposal met with opposition. The government also plans to set aside funds per kWh of wind power production for areas and activities negatively affected by the development, such as natural spaces and reindeer herding.
“Solid fuels” – The EU Commission authorised a €300 mln French aid scheme for using solid recovery fuels, a source of energy derived from mixed municipal waste that can be a substitute to fossil fuels. The aid will take the form of direct subventions. According to the Commission, this measure “will contribute to the realisation of the objectives of the EU within the framework of the industrial plan of the agreement to reduce the dependency on the protection of imported fossil fuels.”
REPowerEU – Finland submitted its request to modify its recovery and resilience plan and add a REPowerEU chapter. The investments will boost new technologies for renewable energy and hydrogen production, including offshore wind power in Aland and the related R&D, whereas the new reform aims at streamlining and facilitating investment permit procedures related to renewable energy projects. These additional funds make the submitted modified plan worth €1.95 bln. If the Commission’s assessment is positive, the Council will then have up to four weeks to endorse it.
Getting involved – First Abu Dhabi Bank (FAB), one of the largest lenders in the UAE, has traded around €80 mln worth of carbon units since opening its emissions trading desk five months ago, AGBI reports. Aimed at developing the carbon trading market in the Middle East and North Africa, the desk provides trading and financing options for corporate and investment clients. FAB has executed trades equivalent to 1 Mt of CO2, mostly in EU Allowances, and also has trading capacities in UK Allowances. The bank was the first in the region to trade on Abu Dhabi’s ACX-powered exchange, which collaborates with various carbon offset registries. FAB recently signed preliminary agreements with Abu Dhabi’s Masdar and UAE-based Blue Carbon for voluntary credits and is in talks to further expand the local market. The developments come as the UAE government has pledged $450 mln to purchase African carbon credits by 2030.
ASIA PACIFIC
Reveal sources – The Australian Broadcasting Corporation (ABC) said it would not reveal its sources, after Western Australian police demanded footage of climate protestors taken by news programme Four Corners, the Guardian reports. However, ABC managing director David Anderson has not explicitly ruled out handing the vision to the police. WA Police ordered the ABC to hand over all footage collected by the programme after a news crew was present when activists were arrested outside the home of Woodside CEO Meg O’Neill in Perth in August. The police order relates to all footage shot by the Four Corners crew over several months, not just on the day of the protest. Australia’s media union said it would be unethical to hand raw footage of anyone journalists filmed to authorities. The demand from police comes ahead of Four Corners airing an episode on Monday about the battle between climate activists, the government, and energy companies in Western Australia.
The big unveil – Indonesia is set to unveil its $20 bln energy transition plan next month, days before the COP28 climate summit, an official set on Friday, as reported by Reuters. The Just Energy Transition Partnership (JETP) project plans are to be released for public feedback on Nov. 1, with an official launch lined up for around Nov. 20. Indonesia has agreed to cap and peak the power sector’s carbon emissions at 290 mln tonnes by 2030 under the JETP.
AMERICAS
WY no thank you – Wyoming will pass up the chance to apply for roughly $5 mln in federal money to plug certain kinds of oil and gas wells. The Inflation Reduction Act gives states around $350 mln in total to plug what are known as “stripper wells,” or wells that produce less than 15 barrels of oil a day but still produce significant amounts of methane; stripper wells, which are often used by smaller oil and gas drillers, are responsible for about 10% of Wyoming’s oil and gas production. “This approach – concocted by DC bureaucrats – shows a complete disregard for the importance of this industry to Wyoming’s economy,” Governor Gordon said in a statement. “These are wells that have, and will continue to produce, significant amounts of oil; provide jobs through hundreds of small businesses; and generate revenues for schools, the state and local government.” Wyoming joins other Republican governors in turning down some IRA funds or not applying for others—including Florida, whose governor Ron DeSantis in August vetoed requests to apply for around $350 mln in incentives. (Climate Nexus)
Carbon capture study – Norway-based Aker Carbon Capture has been awarded a feasibility study to implement carbon capture for mineral production facilities in the U.S. Midwest, it announced Friday. The study will develop a design and cost basis for Aker Big Catch CO2 capture and conditioning facilities. These are fully integrated into the emitting production facility and include both advanced heat integration and downstream integration, enabling low energy consumption by making reuse of energy along the value chain possible. According to Aker, the combined planned capture capacity from these facilities will be approximately 1.5 mln tonnes of CO2 per year. This is the third US study contract Aker has received this year, bringing their total annual amount of C02 emissions under study in the US market to over 3 mln tonnes.
VOLUNTARY
Aid for the degraded – A new global study led by the Wildlife Conservation Society focuses on the benefits of restoring degraded forests for climate mitigation, instead of just replanting deforested areas. According to Mongabay, the research finds that degraded forests, which still retain 50-80% of their potential tree density, cover more than 1.5 bln hectares globally. Restoring these forests could provide rapid gains in carbon storage and wildlife habitat. These areas are easier and cheaper to restore than lands that have been completely cleared and can rapidly recapture lost carbon. The study argues that restoration efforts should expand to include degraded forests to maximise carbon sequestration and habitat connectivity. The researchers demonstrated their approach in Central America’s “Five Great Forests,” identifying 9.8 mln hectares as a high restoration priority, 91% of which were degraded forests. Restoring just 5% of these priority areas could sequester 113 Mt of CO2, roughly. The study comes as over 140 world leaders have pledged to halt deforestation and restore forests this decade. The authors emphasise that local constraints like land ownership must be considered in restoration efforts, which should also be tailored to local and Indigenous communities.
Oil offsetting – Canada-based Africa Oil Corp. plans to build two projects in Kenya to help offset emissions from its oil drilling operations in other countries and to create a new revenue stream, Nation.Africa reports. The company, which plans to achieve carbon neutrality by 2025, has not disclosed the nature of the projects, but says it prefers to invest directly in nature-based carbon removal projects where it has full transparency and control. It is also open to buying existing credits from the market, given that some of its carbon offset projects may not progress fast enough or deliver the volume required.
INVESTMENT
The next big thing – Macquarie Asset Management is looking for opportunities beyond more conventional renewables like wind and solar, with its Green Investment Group having piled into grid-scale batteries, clean transportation, hydrogen, and metals recycling in the last 18 months, Bloomberg reports. This “second phase” of the energy transition in more nascent technologies may seem like riskier bets but can lead to potentially greater payoffs, particularly as more mature wind and solar markets see diminishing returns due to inflation and supply chain bottlenecks. Recent investments by Macquarie include French battery manufacturer Verkor and hydrogen-fuelled fertiliser platform Atlas Agro.
AND FINALLY…
Emit-ternet – Satellite-based internet providers emit up to 30 times more CO2 than traditional land-based connections, the New Scientist reported Wednesday. Researchers in the US and UK have made the first attempts to calculate the carbon foot prints of SpaceX Starlink, Eutelsat OneWeb, and Amazon Kuipek. Those internet providers have much higher emissions because of the need to launch satellites into space, a burden other internet providers don’t bear in their operations.
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