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TOP STORY
POLL: Analysts downgrade EU carbon price forecasts on weaker energy, industrial outlooks
Analysts have downgraded their outlook for EU carbon prices for the remainder of Phase 4 (2021-30) due a number of shorter-term bearish factors including stagnant industrial productivity, sliding demand from the power sector, and an increase in EUA auction supply.
EMEA
EU nations agree COP28 mandate, and on ramping up CO2 targets for trucks and buses
Environment ministers from the 27 EU member states on Monday agreed on a negotiating mandate for the year-end COP28 UN climate talks with an updated nationally determined contribution (NDC), while settling on a collective position on a directive to revise up CO2 targets for heavy-duty vehicles.
Opposition party could form coalition government in Poland, early election results suggest
The incumbent Law and Justice (PiS) party has won the largest share of votes in Poland’s general election, according to exit polls late on Sunday, but the liberal opposition may have enough votes to form a coalition government.
ANALYSIS: Industrial power price provisions lean into EU electricity market reform talks
As EU ministers try to reach a united position on the bloc’s divisive electricity market design reforms this week, provisions for the bloc’s heavy industry are increasingly featuring in the talks alongside efforts to shield citizens from higher costs and make prices less dependent on fossil fuels.
Euro Markets: EUAs tumble through technical supports as energy markets drop amid milder weather forecasts
European carbon prices slumped on Monday, tracking a weaker energy complex where traders unwound some of last week’s substantial gains amid forecasts for slightly milder temperatures and some profit-taking.
ASIA PACIFIC
New Zealand’s National party to form govt after decisive election result, as ETS participants wait on policy detail
New Zealand’s National party received just under 39% of the preliminary results at Saturday’s election meaning it will be able to form the next government, however it will be some time before there is clarity on key ETS and climate policies.
Japanese satellite provider expands carbon credit business to Vietnam
A Japanese satellite solution provider has teamed up with a university in Vietnam to expand its credit-generating business, as it aims to tap into voluntary markets overseas.
China-financed operational coal plants increase, despite ban on overseas projects -report
The number of operational coal plants financed by China has increased over the past two years, despite the country’s promise to cease the building of new coal plants, a report has found.
German biotech company to help farmers reduce emissions from rice cultivation in India, Philippines
A German biotechnology company has announced plans to help smallholder farmers shift to a regenerative rice cultivation method in India and the Philippines, thereby reducing greenhouse gas emissions.
AMERICAS
ANALYSIS: Responsibility for Canada’s wildfire emissions depends on who you ask
Record-setting wildfires in Canada this year have released significant volumes of CO2 into the atmosphere, but experts gave Carbon Pulse different opinions as to whether the country should alter its existing emissions reporting practices to account for this.
Increasing wildfires jeopardising efforts to protect Brazilian Amazon, researchers warn
The Brazilian Amazon is seeing greater numbers of wildfires this year despite lower deforestation rates, threatening progress to conserve the biome, researchers said in a letter published Monday.
RGGI Market: RGA stagnation reigns as market outlook remains murky
RGGI Allowances (RGAs) held steady once again over the week amid a continued dearth of volatility, with market participants reporting uncertainty from numerous directions, though they expressed a split over whether a pre-Q4 auction lull was hindering further gains.
VOLUNTARY
VCMI to publish additional guidance on voluntary carbon claims code at end of November
The Voluntary Carbon Markets Integrity Initiative (VCMI) will publish additional guidance on Nov. 28 to supplement its ‘Claims Code of Practice’, a set of recommendations to help corporates with their use of voluntary carbon credits, following stakeholder engagement and further research since the initial release of its initial guidelines in June.
VCM Report: Standardised carbon credit contracts fall to multi-month lows even as exchange spot volumes tick up
The prices of most standardised voluntary carbon credit contracts fell over the past week, with several slumping to lows last seen in June, as the market continues to wait for integrity initiatives to complete ongoing work, while exchange-based spot activity picked up as market sources cited seasonal corporate buying as part of 2023 emissions buying programmes.
Planting trees for carbon comes with major fire risks, researchers warn
Expensive afforestation projects in grasslands and other previously open ecosystems using flammable, non-native trees in order to capture carbon should be off the table given the fire risk, according to researchers.
INTERNATIONAL
Meeting Paris Agreement goals can yield over $600 trillion in economic benefits, report says
Holding global temperature increases to below 1.5C would save hundreds of trillions of dollars in benefits, while nearly $1 quadrillion in climate damages would result if Paris Agreement targets are not met, according to analysis published Monday.
CARBON FORWARD 2023: WTO developing initial framework for global carbon pricing measure
(Corrects last week’s story to delete incorrect quote in paragraph ten, replaces with paraphrasing to reflect the spoken remarks)
BIODIVERSITY (FREE TO READ)
Antarctic commission urged to unfreeze Antarctica’s marine protected areas process
Governments and their related organisations are not doing enough to protect marine life at the southern end of the planet and must resolve long-standing issues around three crucial areas in the region, scientists and environmentalists said as governments on Monday gathered in Hobart, Australia for two weeks of negotiations on Antarctic marine living resources.
More than 60% of global GDP threatened by water crisis, says WWF
Trillions of dollars in economic value are at risk in water-dependent sectors, according to environmental not-for-profit WWF, which has shined a spotlight on freshwater resource challenges in a new report.
Floating offshore wind developer calls for innovations that support biodiversity
A leading offshore wind developer is calling for innovations in the realm of floating offshore wind that support biodiversity enhancement and help ensure that wind farms co-exist peacefully alongside other sea users.
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Job listings this week
- *Supply Manager US, Carbonfuture – Remote
- *Business Development Manager, Abatable – London (Hybrid)
- *Carbon Standards Specialist, Space Intelligence – Edinburgh
- *EMEA Policy Editor, Carbon Pulse – Brussels/London/Remote (in Europe)
- Operations Associate, ACX – Singapore
- Business Development & Client Relations, ACX – Singapore
- Director, Nature Positive People Partnerships, The Nature Conservancy – Arlington/Seattle
- Conservation Technology for Nature Based Solutions Intern, Fauna & Flora – Cambridge, UK
- Senior Project Officer Carbon Farming, WA Department of Biodiversity Conservation and Attractions – Perth
- Project Specialist (Carbon Projects), Carbon Neutral – Perth
*Premium listings
Or click here to see all listings
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CONFERENCES
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
EMEA
French protest risk – Opposition members in France have hit out at government efforts to rein in electricity prices as part of EU talks to reform the bloc’s power market, with ongoing debates about state aid for power generators. Paris wants to apply two-way Contracts for Difference (CfDs) to finance the lifetime extension of its 56 existing nuclear reactors as part of the reform, in line with the European Commission’s original proposal, but the proposal is being resisted by its neighbours like Germany and Spain who fear that it will give French industrialists an unfair edge, as they themselves transition to 100% renewable power. Meanwhile, the French government is also engaged in a tussle with state utility company EDF who does not want CfDs for existing nuclear plants. In response, President Emmanuel Macron aims to “take back control of electricity prices” before year-end, whatever the outcome of political negotiations in Europe may be. (Euractiv)
Helping hand – Norwegian climate tech company Removr advances its project developments with the support of Cowi, an engineering firm. Cowi selected Removr for its co-creator startup pilot programme, offering project planning and structuring support for DAC projects with a current planned capacity of 100,000 tCO2 per annum in Iceland. Cowi handpicked nine companies it will support from a pool of startups for their potential to solve global challenges.
Out of the frying pan – Norway Prime Minister Jonas Gahr Stoere on Monday announced a reshuffle of his Cabinet, with seven ministers swapped out in the process. Among the departures was Climate and Energy Minister Espen Barth Eide, who has been criticised for not being able to dampen the Scandinavian country’s oil exploration hunger during his two years in the position, but has now been appointed new minister of foreign affairs. He will be replaced by Anders Bjelland Eriksen, who comes from the job as state secretary in the Ministry for Petroleum and Energy.
Green ads only – Members of the UK’s Green Party have unanimously backed a motion to ban ads that promote polluting goods and services, at a conference held in Brighton last week. They voted for an end to all adverts that promote goods, products, and services that are carbon-intensive, such as SUVs and long-haul flights, which, if brought into play, would align the UK with France, which voted in 2022 to ban fossil fuel ads, becoming the first country in the world to do so. In 2021, Amsterdam became the first city globally to ban ads from fossil fuel and aviation companies, while in other regions, ads for high-carbon industries, such as the automotive sector, must carry tobacco-style health warnings.
Voter concerns – A large majority of Germans are worried that the ongoing rise in everyday costs will erode their standard of living, according to a survey by insurer R+V, with climate ranking only in tenth position. The three-biggest fears for people in Germany identified in the survey revolve around economic concerns: 65% worry about increasing living costs, 60% about unaffordable housing, and 57% about tax increases or benefit cuts. Despite the economic slump, however, the fear of a worsening economic situation declined compared to the previous year. At the same time, the survey revealed a significant increase in concerns that the number of refugees could overwhelm society and the authorities. (Clean Energy Wire)
Ship-shape – Global fashion giant Inditex, the parent company of brands like Zara and Massimo Dutti, has joined forces with Maersk to reduce its carbon footprint in global seaborne logistics, Offshore Energy reports. The partnership aims to incorporate alternative, eco-friendly fuels into all inbound routes through Maersk’s ECO Delivery Ocean programme, featuring green methanol and second-generation biodiesel produced from waste feedstocks. This transition is expected to yield a reduction of over 80% in GHGs per litre compared to traditional fuel sources. The emissions savings achieved through this programme will be confirmed with externally verified certificates while participating transports will be exempted from charges associated with the EU ETS in the future, according to the article.
Put a label on it – Plant-based drinks maker Oatly has urged all food and drink producers to publish product footprints amid claims consumers are not being helped to make informed choices, Business Green reports. Oatly has launched a fresh campaign calling on UK-based food and drink producers to publish the climate impact of their products, as it published a new report making the case for mandatory labelling. The company positioned the new report in recognition of how climate labelling is not, as they view it, a black and white issue where certain foods are good and others are not. The paper argues the public is already supportive of climate labelling, with polling commissioned by Oatly indicating that more than half of consumers back its introduction, rising to almost three quarters of under-35s.
ASIA PACIFIC
Passed – Papua New Guinea has passed the Climate Change Management Act 2015, the Post Courier reports. The act establishes a legal framework to enforce and collect tax revenue from carbon projects, as well as provides a framework to promote and manage climate change adaptation and mitigation work, and establish the Climate Change Development Authority as the statutory body on climate policies. However, the bill is intended to be read in conjunction with the prevailing provisions of the Climate Change (Management) (Amendment) Act 2023. Environment Minister Simo Kilepa said the Act fails to provide a cohesive and clear administrative framework, and that the Climate Change (Management) (Amendment) Bill 2023 will address these uncertainties by bringing the administration of the Authority into conformity with applicable laws governing statutory bodies, and by considering frameworks and structures adopted by similar institutions.
What phasing out? – The phasing out of coal-fired power may get delayed in India because of a sharper-than-expected rise in domestic demand for power and the realisation that renewable capacity addition could fall behind the targets. India’s capacity addition in the renewable energy sector is lagging the targets initially set, and raising it to 500 GW by 2030 from the current level of 172 GW requires annual additions of 45 GW, against the 13 GW of new renewable energy capacity set up in financial year 2022-23. According to the power minister of the country, the Indian government hasn’t formulated any plan to phase out old coal-based thermal power plants, and no retirement or re-purposing of coal-based power stations will be done before 2030. (Financial Express)
Bio-energy investments – The Indian Biogas Association (IBA) has received investments worth $3.3 bln during the Renewable Energy India Expo held in Greater Noida, in the first week of October. The association has signed joint ventures and MoUs with various countries like Germany, Italy, and Sweden. The IBA is working with many international organisations to foster the development of the bio-energy sector in India, The Times of India reported.
Continued tax cut – South Korea will extend the tax cut on fuel consumption through December amid concerns over growing inflationary pressure due to conflict between Israel and the Palestinian militant group Hamas, the Korea Times reports. While the country has not suffered any major disruptions in energy supplies, such worries have emerged as South Korea is largely reliant on energy imports, with 67% of its crude oil purchases and 37% of its total gas deals coming from the Middle East, according to the report.
Carbon capture projects – Japan’s Mitsubishi Heavy Industries (MHI) has commenced joint demonstration testing of a system that liquefies the CO2 captured from gas engine generator sets, in a bid to expand carbon capture, utilisation and storage (CCUS) application, according to a company statement. As liquefied CO2 has less volume than gaseous CO2 and is more transportable, the testing is expected to accelerate the adoption of CCUS, MHI said. Meanwhile, Cosmo Energy Holdings and Kansai Electric Power (KEPCO) recently also initiated joint studies to create a CCS value chain in the Sakai-Semboku region, with the aim of investigating the feasibility and economic viability of liquefied CO2 transportation modes and potential storage sites.
AMERICAS
Made in the USA – American domestic oil production hit an all-time high of 13.2 mln barrels during the first week of October, which surpassed the previous record set in 2020 by 100,000 barrels. The record-breaking production places President Joe Biden’s administration at further odds with global and national goals to cut carbon emissions, critics argue. The Biden administration has flip-flopped on energy exploration – recently approving the Willow oil project in Alaska while cancelling drilling permits in the Arctic – leaving observers critical of American climate action via fossil fuels. (AP)
Proportionate emphasis – Suncor Energy has emphasised the company’s commitment to cutting carbon emissions and plans to achieve net zero by 2050 by focusing on carbon capture and storage measures, Reuters reports. CEO Rich Kruger appeared in front of a Canadian parliamentary committee in Ottawa on Monday to reiterate the oil producer’s vision to decarbonise, stating that their goals have not changed since Kruger took over in the position earlier this year. The comments follow a controversial statement by the CEO in August that Suncor had placed a “disproportionate emphasis” on the longer-term transition away from fossil fuels to cleaner forms of energy.
More advice – Canada’s environment ministry announced four new members to its Net-Zero Advisory Body (NZAB) on Monday to support development of the country’s plans to achieve carbon neutrality by 2050. The two members serving two-year terms are Louise Comeau from Re.Climate and Shianne McKay from the Centre for Indigenous Environmental Resources, while Anne de Bortoli from Polytechnique Montreal and an independent consultant Robert Hornung will serve three-year terms. NZAB members engage with governments including rights holders, Indigenous peoples, youth, businesses, environmental groups, and other interested Canadians, and have been asked to submit advice to the federal government to support Canada’s next target for 2035 set no later than Dec. 1, 2024.
Secret CFC – Environmental Investigation Agency (EIA) found that US chemical manufacturer Honeywell International released chlorofluorocarbons (CFCs) at the fenceline of one of its chemical plants, in Louisiana, that EIA was monitoring. In addition to detecting CFC-113 and CFC-114 – two of the most potent greenhouse gases and ozone depleting substances ever assessed – the watchdog also detected CFC-13 and two hydrofluorocarbons (HFCs). While Honeywell had reported increasing emissions of both CFC-113 and CFC-114 to the EPA, it failed to report CFC-13 emissions since 2018, and has also not reported its HFCs emissions in recent years. Following EIA’s findings, the manufacturer’s spokesperson Mike Hockey defended the company’s reporting practices, stating that Honeywell “complies with and provides air quality reporting as required by the EPA”. A spokesperson for EPA has said that the agency will follow up with Honeywell with questions about their 2022 GHG reporting.
VOLUNTARY
Paper fail – Tens of millions of dollars in funding for South Pole’s embattled Kariba forest carbon project was sent through numerous offshore bank accounts in order to reach Zimbabwe, effectively eliminating any paper trail that could prove if the money was actually funding the offset project, The New Yorker reported Monday. Income from Volkswagen, Gucci, Nestle, Porsche, and Delta Air Lines was sent to an account in the English Channel Island of Guernsey, before being redirected to countries like Mauritius, the Cayman Islands, the Seychelles, or Russia and eventually making its way to Zimbabwe, where money would get distributed in cash, the project land owner Steve Wentzel told The New Yorker. The land owner said there was no paper trail for the Kariba project. The Kariba project has been in the subject of several media reports this year after findings emerged the project overstated its emissions reductions by tens of millions of tonnes.
Truth in advertising – Seattle’s Climate Pledge Arena and the International Living Future Institute on Monday announced the arena has achieved Zero Carbon Certification, making it the first arena in the world to receive the certification. The certification is awarded to buildings that are energy efficient, can demonstrate a significant reduction in carbon footprint, and offset the remaining embodied carbon and energy use through high-impact offset programs. The arena, in partnership with tech giant Amazon, purchased and retired 37,800 nature-based carbon offsets through Verra’s VCS programme, although it did not specify project information. The Climate Pledge Arena is home to the NHL’s Seattle Kraken and WNBA’s Seattle Storm.
INVESTMENT
Climate tech boost – HSBC Asset Management is launching a climate tech exchange-traded fund (ETF) in partnership with Nasdaq, building upon its commitment to widen investor access to climate-focused investment products. The HSBC Nasdaq Global Climate Tech UCITS ETF is listed on the London Stock Exchange and tracks the Nasdaq CTA Global Climate Technology Index in order to offer investors broad exposure to the climate technology ecosystem through a taxonomy developed by the Consumer Technology Association (CTA) and Nasdaq. The index spans companies developing technologies supporting a more sustainable future including power sources, infrastructure, low-carbon mobility, and greener agriculture. Each company is scored according to its revenue share derived from climate technology and how the company’s own technology helps deliver on climate objectives such as carbon neutrality or net zero. (etfexpress.com)
AND FINALLY…
Would you like a sip? – Increase in temperature due to climate change has established better growing conditions for grapes in England and improved the quality of its wine, sparking significant buyer interest, Reuters reports. Coupled with rising concerns about CO2 emissions that is leading British consumers to choose local produce over imports, viticulture has become the nation’s fastest-growing agricultural sector, and the UK is planting vines faster than most of the world’s biggest wine producing countries. WineGB predicts that Britain will produce 22 mln bottles of wine by 2030, climbing from about 12 mln bottles in 2022. The country’s landscape seems particularly welcoming to the champagne market, as Taittinger and Pommery – two of France’s best known Champagne houses – have bought land and planted vines in England. Moreover, the world’s biggest sparkling wine company, Henkell Freixenet, acquired an English wine estate, Bolney, in 2022. The UK also brought home its highest ever number of medals at last year’s Decanter World Wine Awards. There are now over 900 vineyards in England as the hectarage, which has quadrupled since 2000, has now replaced that of crops, orchards, and pastures.
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