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TOP STORY

COP28 hosts signal intent to expand energy transition partnerships, reform climate finance, operationalise carbon markets

The UAE hosts of the upcoming UN climate summit have signalled a desire to secure more so-called Just Energy Transition Partnerships (JETPs) at the Dubai event, also outlining in writing several of the previously-stated core aims for the event, such as renewable energy expansion, the phasing down of unabated coal power, and the importance of scaling carbon markets.

VOLUNTARY

Nature restoration carbon projects see strong pipeline growth in 2023, retirements still down, says analytics firm

A carbon intelligence platform has shared an update on the voluntary carbon market, which now appears stalled until COP28 negotiations provide clarity on Article 6, while highlighting strong growth in the project pipeline for nature-based projects.

INTERVIEW: Biochar developer sees demand from buyers targeting local, sector efforts

A Europe-based developer of biochar-based carbon removal parks sees strong demand from regional-focused buyers prepared to pay well into triple digits for its carbon credits, having sold out of its initial offering for the first two projects it has operating so far.

Record number of companies disclose progress on climate this year, says non-profit

A record number of firms have reported their progress on tackling climate change in 2023, annual data published by a non-profit organisation revealed, though the plans don’t contain enough details and are not sufficiently aligned with the goals of the Paris Agreement, a report by an investor engagement initiative also released on Wednesday showed.

Asset owners alliance announces first annual emissions drop

An alliance of asset owners has seen annual emissions across its 86 members fall for the first time, albeit marginally, as the group moves to defend its role in the face of rising political pressure against collective corporate climate action from some factions.

Regulators must implement stricter punishments for ‘climate washing’ offenders, say researchers

Regulators must act now to stop repeat offenders from greenwashing and engaging in corrupt climate practices, according to a report published Wednesday by researchers, as they warn that a lack of integrity, including in voluntary carbon markets, is threatening progress on halting global warming.

Insurance marketplace protects against buy-side carbon credit risk with new partner

A large insurance marketplace has granted ‘in principle’ approval to a carbon insurance company to commence underwriting of carbon credit risk from Jan. 1, 2024.

Methane emissions certifier to enable trades on Xpansiv’s platform

A non-for-profit methane emissions certifier on Wednesday announced it will launch its certificates on ESG commodity marketplace operator Xpansiv’s CBL Global Spot Exchange.

EMEA

Developers give final go-ahead to €1.3 billion EU carbon storage project

A carbon storage project in the Netherlands obtained its final investment decision on Wednesday, becoming the first in the EU to reach this stage.

Euro Markets: Carbon decline cushioned by gas volatility as investors slash net short by more than 50%

European carbon prices eased lower on Wednesday after moving in a relatively narrow range, with sources expressing surprise that levels had not declined further after position data showed investment funds had more than halved their net short position last week.

AMERICAS

Canada’s carbon contracts for difference should shun oil companies and CCUS, green groups say

A carbon contracts for difference (CCfD) programme under consideration by the Canadian government should avoid undermining the country’s CO2 price, including by cutting out the oil industry and carbon capture projects, numerous green groups and academics said in a letter this week.

LCFS Market: Oregon credit prices shed 10% in October as losses hit multiple programmes

Oregon Clean Fuels Program (OCFP) credit values continued their weeks-long descent in recent days as traders reported the market seems more balanced, following on from even greater losses in neighbouring Washington state earlier this month.

RFS Market: RIN prices rebound from 3-year lows on supply, economic question marks

After hitting their lowest point in nearly three years last week, US biofuel credit (RIN) prices under the Renewable Fuel Standard (RFS) have since turned around, with market participants indicating the potential for supply constraints and a macro slowdown to put a floor under prices.

ASIA PACIFIC

Major Japanese bank forms alliance to encourage JCM credit creation

One of Japan’s largest banks has agreed to work with a domestic investor to foster sustainability-related business collaborations, including the creation of carbon credits under the country’s bilateral Joint Crediting Mechanism (JCM).

China strengthens emissions reporting requirements for key sectors, gearing up for ETS expansion

China has released guidelines on emissions reporting requirements for several carbon intensive sectors for the 2023-25 period, seen as laying the foundation for the domestic carbon market to expand the scope of covered industries in the coming years.

China thermal power growth speeds up in September amid rosier-than-expected economic recovery

Growth in China’s thermal power generation accelerated in September, though slower than the growth of total power output, which was supported by a sharp increase in hydropower production, government data showed Wednesday.

BIODIVERSITY (FREE TO READ)

TNFD nature recommendations more solid than ESRS, says head of EU biodiversity group

The recommendations from the Taskforce on Nature-related Financial Disclosures (TNFD) are more consistent than the European Sustainability Reporting Standards (ESRS) requirements, the lead of an EU-established group has said.

Australian project developer sees mismatch between biodiversity and ACCU project rules

Existing rules around environmental planting carbon projects can make them unsuitable to achieve biodiversity outcomes, a project developer told a conference in Canberra.

Australia at risk of accepting biodiversity decline in offset rules, expert says

Clear definitions around baselines in biodiversity standards are essential to be able to successfully measure outcomes and avoid nature decline, especially regarding offsets, an expert told a conference in Canberra Wednesday.

Nature startup raises €1.7 million to develop corporate biodiversity reporting platform

A Germany-based startup company has raised €1.7 million in early stage funding, hoping to capitalise on a growing list of voluntary and mandatory requirements for corporates to address biodiversity loss and impact.

Capitals Coalition: Partner with SMEs to improve nature action

Small- and medium-sized enterprises (SMEs) should partner with larger companies in their supply chain to boost action on nature, the private sector Capitals Coalition has said.

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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

Invest the returns – The world’s top independent energy trader, Swiss-based Vitol, will invest around half of its $2 bln capital expenditure on low-carbon and renewables, its CEO Russel Hardy said, Reuters reports. “We’ve got a fair amount of capex going into the renewables and power business. Half of the company’s capex, which is $2 bln, so about $1 bln, is going into renewable business,” Hardy told an industry event this week. He added that the firm expects benchmark Brent crude oil prices to remain in the range of $80-90/bbl over the next 12 months as volatility in the market remains high and demand continues to grow, particularly from China.

State aid – The EU Commission approved on Wednesday a €100 mln Austrian state aid scheme to support small- and medium-sized companies facing increased energy costs in the context of Russia’s war against Ukraine. The aid will take the form of guarantees on new loans from credit institutions to the companies.

Infrastructure investment – Britain requires tens of billions of pounds of additional infrastructure investment annually between now and 2050 in order to meet the challenge of climate change and narrow the economic disparities between north and south, say government advisors, Reuters reports. Investment is needed in new power networks and rail, road and broadband upgrades, as well as large subsidies to replace domestic gas boilers with heat pumps. The advisors are also calling for the country to adopt longer-term thinking following sharp swings in public investment budgets of late and U-turns on projects such as the High Speed 2 railway. They say that an investment surge could help the UK speed up its slow pace of economic growth over much of the past 20 years.

Blown on course – The EU will pledge to prop up its wind industry in the face of toughening global competition, supply-chain bottlenecks, and financing concerns to ensure that the bloc can meet ambitious climate and sustainable growth plans, and compete on an international stage, particularly with China. The European Commission will look to improve access to EU financing, speed up permitting, and overhaul the way countries conduct auctions to provide renewable energy so they take into account factors beyond cost, such as cyber-resilience and carbon content of new wind farms, according to a draft seen by Bloomberg.

ASIA PACIFIC

Miner calculating emissions – Australian coal miner South 32 plans to cut its shipping emissions, beginning by establishing a database of emissions data from 80% of its voyages since financial 2023, which ended June 30 in Australia. From January, the EU ETS will cover carbon emissions from shipping, impacting transport costs for its commodities and raw materials shipped to and from the EU, and the miner is preparing now. It implemented a Carbon Adjustment Factor as part of its contract with Klaveness Combination Carriers at the beginning of the year for caustic soda shipments. The company receives a higher rate if emissions are below the set baseline and lower if they exceed it. 

Kicking the can down the road – Australian mining giant BHP has caught flack this week for selling Queensland coal assets to Whitehaven. Activist shareholder group the Australasian Centre for Corporate Responsibility, which regularly takes mining and energy giants to task at AGMs, has lambasted the sale for simply offloading emissions. Whitehaven will pay $4.1 billion for two metallurgical coal mines in the state. ‘Met’ or coking coal is used in steel making thanks to its higher energy properties. BHP has been clear it sees a strong outlook for the commodity but also signalled it planned to focus on only the highest quality assets going forward.

Biochar potential – Japanese agricultural machinery Yanmar has begun a full-scale demonstration project for rice husk biochar, which will be running until August 2024, it said in a statement released this week. By introducing this technology, the company aims to reduce the cost of processing rice husks, expand the use of biochar, and seek the creation of carbon credits. The installation of the new project is capable of processing 400 tonnes of rice husk per year, reducing 117 tonnes of CO2.

Feedback needed – The secretariat for Japan’s Joint Crediting Mechanism (JCM) has issued a public call for comments on a proposed REDD+ project in Luang Prabang, Laos, it said in a statement on Wednesday. Waseda University and Marubeni Corporation have participated in the project, which could reduce emissions through controlling shifting cultivation. The project design document (PDD) has been made publicly available, and the call for public inputs is open from Oct. 19 to Nov. 17, the statement said.

Seaweed bed restoration – Three Japanese companies –  including Tokio Marine Asset Management, Innoqua, and Tokio Marine dR – have teamed up to help restore seaweed beds near Ishigaki Island, Okinawa prefecture, they announced Wednesday. The companies said they would work with local schools and conduct relevant research on how to optimally regenerate seaweed beds, with the aim of obtaining blue carbon or biodiversity credits through the restoration of biodiversity.

AMERICAS

Upgrid – The US government on Wednesday announced $3.5 bln funding to connect transmission systems with electricity from cleaner sources, as well as to protect the US power grid from fire and extreme weather conditions. The fund, which comes from President Joe Biden’s Bipartisan Infrastructure Law, will support 58 projects across 44 states to bring over 35 GW of new electricity onto the grid from wind, solar, and other renewable energy sources. Part of the fund will also go towards investing in 400 microgrids. More than 75% of the selected projects have partnerships with the International Brotherhood of Electrical Workers union and the administration aims to maintain or create union jobs, Department of Energy said. (Reuters)

GREET the day – US Senators John Thune (R) and Amy Klobuchar (D) have reintroduced the Adopt Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Act, according to their announcement Tuesday. The bill would require the US EPA to update its GHG modelling for all renewable fuels under the Renewable Fuel Standard (RFS). More specifically, it would require the EPA to apply the Argonne National Lab’s GREET Model to any fuel that has qualified for the RFS and has an EPA-approved pathway. The agency would then be required to update its modelling every 5 years, or report to Congress to affirm its modelling is current or otherwise explain why no updates were made. In the release, Thune said it is important that EPA modelling “more accurately reflect the emissions reductions achieved by ethanol, biodiesel, and sustainable aviation fuel.” He also introduced the previous iteration of the bill in 2021, but it never made it past this stage, according to Congressional records.

SCIENCE & TECH

Decommissioning moving into CCS – Scottish decommissioning specialists Well-Safe Solutions is expanding into carbon capture utilisation and storage (CCUS) and geothermal energy via the appointment of its first Energy Transition Manager. It said on Wednesday that Alexa Duncan has over 15 years of experience in project management and well engineering roles for international operators. The North Sea-focused company built its business in plugging and abandonment of oil and gas wells at the ends of their lives, but sees value in moving to CCS given an estimated CO2 storage capacity of 78 billion tonnes on the UK continental shelf, as estimated by the North Sea Transition Authority, using empty oil and gas reservoirs.

SAF power – Business jet engines made by Honeywell have been flown with 100% sustainable aviation fuel (SAF) for the first time during a test at the Embraer campus in Melbourne, Florida. Honeywell’s HTF7500 turbofan engine was tested on Embraer’s Praetor 600 aircraft using 100% SAF, with the aircraft’s other engine using traditional jet fuel. The test demonstrated that the  HTF7500 engine running on 100% SAF performed just as flawlessly as when running on traditional jet fuel, the two partners found. The successful test of 100% SAF in Honeywell’s engine shows the positive benefits of SAF for the overall aviation industry in driving down carbon emissions. (World Bio Markets Insights)

AND FINALLY…

You know Huliak – Rudolf Huliak, a man nominated by the Slovak National Party to head up the nation’s environment department, and who believes the elite invented climate change to take away the public’s cars, may soon be among the bloc’s environment ministers, EurActiv reports. In previous comments, Huliak has called for environmental activists to be hanged. An online petition against Huliak’s nomination has already gathered almost 40,000 signatures, while the ministerial hopeful himself has started a counter-petition in his support, which lags behind with 10,000 signatures. Huliak has also previously said he would personally visit Russia and ask for forgiveness if he were in power.

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