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TOP STORY

FEATURE: Macro pressures threaten climate investment as finance debate hots up ahead of COP28

Concerns are mounting that high debt piles, or a possible global economic recession, could knock the energy transition off course.

VOLUNTARY

Carbon removal purchases jump tenfold in 2023, nature-based projects strong in the pipeline, says ratings agency

Transactions of durable carbon removals have increased by more than 10 times over the past year, according to an annual report from a carbon credit ratings agency, supporting recent data from analysts that there is likely to be a strong future supply of nature-based credits from projects currently in the pipeline.

INTERVIEW: Canadian tech company says “first ever” to patent carbon credit generation process

A Vancouver-based climate tech company is claiming a world-first in patenting its process of generating carbon credits, which are facilitated by users who make lower-carbon transportation choices as tracked by the firm’s technology.

US CO2 pipeline delay won’t risk carbon removal venture’s 2025 goal, official says

A major US carbon storage pipeline is facing a multi-year delay after several Great Plains states denied permits to the project, but the forward purchasing goal of a CO2 removal buyers’ club won’t get threatened by the postponement, a senior official told Carbon Pulse.

ASIA PACIFIC

India’s new ecolabelling scheme seen as a potential spur for carbon credit purchases

India’s draft notification on a new ecolabelling scheme is seen by some as bolstering demand for carbon credits among corporates seeking to demonstrate the very highest levels of climate leadership.

Australia looks to ditch carbon neutral claim in its Climate Active scheme

Australia is looking to overhaul its Climate Active voluntary certification scheme to bring it in line with public, investor, and consumer expectations, as its requirements were viewed by many as woefully out of date.

“Significant” ACCU policy changes not adequately highlighted in govt consultation, carbon project developer says

An Australian carbon project developer has raised concerns with how the government has communicated what it described as “significant” policy changes to the Australian Carbon Credit Unit (ACCU) Scheme, saying further consultation is needed.

Japanese partnership eyes carbon negative concrete for future-focussed expo

A Japanese government body has partnered with three corporations looking to manufacture carbon negative concrete in a turn around given the product is typically classed as both high emissions and particularly hard to abate.

Duo seeks to streamline forest J-Credit generation through AI and drone technology

A Japanese project developer predominantly involved in agricultural projects has teamed up with a forest management firm to begin generating J-Credits in the Kansai region, while planning to offer a simplified process for other companies to establish themselves in the market through new technology.

AMERICAS

WCI Markets: CCA prices stagnate as options volume accelerates, WCAs tick up

California Carbon Allowance (CCA) futures prices flatlined this week on lower volume, despite heightened activity in the options market, while Washington Carbon Allowance (WCA) values inched back towards the programme’s Tier 1 reserve price trigger.

California gasoline sales pick up in July, diesel continues to lag 2022 levels

California gasoline sales and emissions in July exceeded year-ago levels, while monthly diesel consumption and related GHG output continued the trend of lagging historic levels through most of 2023, according to state data published Wednesday.

High social cost of carbon could halve US emissions, mitigate Gulf of Mexico’s “dead zone” -researchers

Applying a social cost of carbon (SCC) to fossil fuels in the US could drastically reduce CO2 emissions while simultaneously improving water quality in the Gulf of Mexico’s “dead zone”, new research has found.

Canadian non-profit allocates C$3 mln to support carbon management tech from British Columbia

A Vancouver-based organisation announced Thursday that it will provide C$2.8 million ($2.05 mln) in non-dilutive funding to help develop commercial pathways for measurement, monitoring, and verification (MMV) of carbon management solutions originating from British Columbia.

Brazil Senate committee to hear REDD+ project land theft allegations in Para state

The Brazilian Senate Environment committee on Wednesday approved a lawmaker’s request to investigate allegations that linked avoided deforestation carbon credit project developers in Para state with the theft of public lands.

EMEA

Infrastructure development key to ensuring demand for renewable hydrogen in the EU -industry

Laying out hydrogen infrastructure and grid connections across the EU will be a gamechanger for the renewable hydrogen sector, industry players said during an online talk on Thursday, a day after a key cross-border EU hydrogen infrastructure plan gained a new major partner.

Co-legislators kick-off talks to finalise EU electricity market reform, aim for deal in two months

Co-legislators for the European Parliament and Council of member states met on Thursday for the first time to kick-off talks to finalise a bill to reform the EU power market, aiming to an end-of-year delivery of the law to shield citizens from higher energy prices.

Euro Markets: EUAs erase early losses amid short covering, while UKAs take weekly losses to 17%

European carbon prices erased almost all their morning losses in a brief spell of sustained buying late on Thursday as traders closed short positions, despite continuing weakness in energy markets and one of the most bearish auctions of the year to date, while UKAs extended their losses for the week to 17% amid a bearish analyst outlook.

INTERNATIONAL

Half the world past peak fossil power generation, research finds

Half of the world’s economies are already well into a period of fossil power decline due to strong renewable growth and efficiency gains, even as demand has increased in many cases, according to analysis from a think-tank published Friday.

Vast majority of world’s coal companies have failed to set exit dates -report

Around 95% of the world’s thermal coal value chain lacks a phaseout commitment and only half of those with exit dates have timelines aligned with the Paris Agreement, according to an NGO-compiled report published on Thursday.

Oil and gas producer network accelerates investments in decarbonisation in 2022

A coalition of 12 fossil fuel producers have boosted their low carbon investments, emissions reductions, and carbon capture utilisation and sequestration (CCUS) development in 2022, according to an annual progress report released Wednesday.

Major financial trade body calls for standardised accounting across carbon markets

A lack of specific accounting standards for carbon credit trading has led a major financial industry trade association to publish a whitepaper offering guidance for the treatment of such units.

BIODIVERSITY (FREE TO READ)

Australian NGOs call for whole-of-government funding for biodiversity conservation

Conservation groups have delivered a statement to the Australian parliament calling for “urgent and sustained” funding toward efforts to conserve and restore biodiversity, alongside wider calls for greater transparency in the country’s environmental law reform process.

Germany-backed €12.9 mln agricultural biodiversity programme expands

A programme backed by around €12.9 million of funding from German government agencies for boosting biodiversity on agricultural land has expanded to another state.

Skills shortage a key barrier to nature-based solutions, says EU official

A shortage of skills in the workforce is one of the greatest obstacles holding back the scaling up of nature-based solutions worldwide, according to a European Commission official.

Biodiversity Pulse: Thursday October 19, 2023

A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).

ECOSYSTEM MARKETPLACE

Shades of REDD+: Reforming the International Financial Systems to Value High-Integrity Forests

Next week, the Republic of the Congo will host the Three Basins Summit of tropical forest basins, which account for 80% of the world’s tropical forests, house two-thirds of terrestrial biodiversity, and play an essential role in regulating the global carbon balance. Rarely has there been an event where forests play a more central role than the forthcoming meeting in Brazzaville. The Summit provides a unique opportunity to make the case for a reform of the rules of global public finance to value tropical forests as global climate and biodiversity assets, writes Charlotte Streck in a piece for Ecosystem Marketplace.

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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

G20 logistics – A report released by the Rocky Mountain Institute (RMI), a US-based non-profit organisation, found that G20 nations which house two-thirds of the global population and are responsible for over three-quarters of global trade and GDP, are also a significant contributor to environmental challenges, including carbon emissions, resource depletion, and air pollution. The report said that these nations can significantly reduce GHG emissions by transforming the logistics sector. It also suggested that these countries can adapt potential solutions such as zero emissions trucking corridors and logistics parks that can potentially serve as centralized hubs for all logistics activities, facilitating seamless operations.

Cool down – The UN will announce a new pledge at COP28 calling for countries to commit to a 68% reduction in cooling-related emissions by 2050, Reuters reports. At present, the refrigerants and the energy used in cooling account for about 7% of GHG emissions, and are expected to triple by 2050 due to rise in temperatures. Experts stated that achieving emission reductions will require major investment in sustainable cooling technology with the help of government incentives as well as bulk procurement. So far, around 40 countries have been consulted on the pledge, although it is unclear which of them may join the pact. The pledge’s organisers are also yet to determine the role of subnational governments and private sectors in the pledge.

EMEA

Non-starter – Hopes were high for the BarMar hydrogen pipeline project linking Spain and France when it was announced almost a year ago, but with no news since then, French experts say the project was in fact always a non-starter, EurActiv reports.

All together now – The Netherlands and Denmark are joining the Just Energy Transition Partnership (JETP) to help South Africa transition away from coal, alongside initial pact members, the EU, Germany, France, US, and UK. The two new signatories have pledged an additional $333 mln to the $8.5 bln in finance initially pledged by the founding members. The landmark climate finance deal is intended to serve as a prototype for similar pacts with Indonesia, Vietnam, and Senegal, and could give momentum to the JETP agreement that’s been bogged down by opposition from coal miners since it was announced at COP26 in Glasgow nearly two years ago, reports Bloomberg.

Phase-outs please – The Czech government has given the green tick to a draft revised National Energy and Climate Plan (NECP), which aims to phase out coal by 2033, oil and gas by 2050, and to boost nuclear resources through building new reactors. The plan also targets increasing the share of renewable energy sources from 15% to 30% by 2030. Czechia was one of the world’s leading electricity exporters in 2022 thanks to its coal and nuclear power plants, but the new plan sees it ready to lose this status in favour of importing clean energy from EU partners. (Euractiv)

Strasbourg dispatch – The EU Parliament’s plenary closed yesterday with minor news for the climate bubble. Lawmakers adopted their position on Tuesday on the establishment of a Strategic Technologies for Europe Platform (STEP) designed to boost critical strategic technologies through financial support. These, including carbon capture, should be the same as the technologies the Net Zero Industry Act is going to support. On Wednesday, an objection to the European Sustainability Reporting Standards was rejected. The proponents wanted to reject the Commission’s delegated act because it would have introduced “a high administrative burden for companies due to the high complexity of sustainability reporting principles”, among other reasons. Right wing parties voted in favour of the objection, Greens and Left against it, and Renew was divided, although it remained mostly against the objection.

ASIA PACIFIC

CCS Startup – Australian oil and gas company Santos has reconfirmed a breakeven price of its onshore Moomba carbon capture and storage project in Australia at $24 per tonne, despite costs rising to $200 million for the 1.7 million tonne per annum project. It said in its third quarter results released Thursday that the project was 75% complete at the end of the reporting period.  Its direct air capture (DAC) unit arrived at the South Australian project after trials in Perth, Western Australia. The unit has capacity of 250 kg of CO2 per day.  It is the only CCS project in the country that may generate Australian Carbon Credit Units (ACCUs). Moomba is the most advanced of the Adelaide-headquartered CCS projects. It also plans to use the near-empty Bayu-Undan gas field that straddles Australian and Timor-Leste waters as a huge, third-party CCS project of up to 10 Mtpa, and noted progress made on the needed London Protocol cross-border provisions for CO2 transport and storage passing the House of Representatives and Senate Environment and Communications Legislation Committee recommending the bill be passed.  Elsewhere, offshore Western Australia it is looking at converting offshore fields like Reindeer, which supplies the state’s domestic gas market, into CCS projects. Activist shareholder group the Australasian Centre for Corporate Responsibility questioned the oiler’s numbers on its Moomba project. “At final investment decision, Santos reported that the project would sequester CO2 for less than $24 per tonne of CO2,” executive director Brynne O’Brien said. “The project capital cost has since increased by 33%, but Santos is still targeting the same unit cost. Greater disclosure from Santos on how this is possible would be very welcome.”

Another CCS project – Japan’s biggest power generator, JERA, has teamed up with engineering firm JGC and Indonesia’s state-owned utility PLN to launch a joint study aimed at the introduction and commercialisation of CCS projects, they announced Thursday. The three companies will consider the introduction of CCS at two thermal power plants owned by PLN subsidiaries, studying their potential as CCS projects by evaluating technical issues and business feasibility. JGC has been working on the commercialisation of CCS in Indonesia, Malaysia, Thailand, and other countries in Southeast Asia.

Ravelled together – Enterprise software company Unravel Carbon announced two new partnerships said to demonstrate its work to support a wide range of sustainability needs. The first partnership was with Australian-based Tasman Environmental Markets, which would allow it to offer its customers Australian Carbon Credit Units (ACCUs) and a range of international projects. The second partnership was with Hong Kong-based climate risk data company Intensel, which would give its users access to data for climate risk reporting and disclosures, due diligence and resilience planning, and supply chain and asset risk management.

Step by step – Taiwan Carbon Solution Exchange (TCX), a voluntary marketplace backed by the island’s main bourse, has signed a memorandum of understanding (MoU) with the British Standards Institution (BSI), aiming to have the newly established carbon market meet international standards, according to a company statement released this week. The exchange will work with BSI on carbon management and training, and the domestic regulations and standards on carbon trading are expected to be completed by the end of this year, TCX Chairman Sherman Lin told local media.

Low-carbon plans – Japanese food producer Calbee plans to offset emissions at three of its business sites through the use of renewables-based J-Credits, which will be provided by Tokyo Gas Engineering Solutions Corporation (TGES), a company statement showed. The initiative will start in stages this year and is expected to offset around 5,000 tonnes of emissions annually by 2025, equivalent to the entire amount of Scope 2 GHG emissions from the heat use from the three sites. The two companies recently also started a demonstration project for biogas production, featuring methane fermentation using unused residues from the potato chips manufacturing process.

Hydrogen hopes – An Australian hydrogen start-up with a novel way to cleanly produce the gas has been awarded over A$470,000 ($296,000) by the Australian government. Sparc Hydrogen has created a prototype device, which uses photocatalytic water splitting over an electrolyser to create the gas. The seed funding was awarded under Australia’s Economic Accelerator grant program and given to the University of Adelaide to continue testing its water splitting reactor. The ASX-listed minnow partners with the renewable energy arm of mining giant Fortescue. 

Green plans – Green energy is a good option for boosting green hydrogen in India, NTPC renewable energy’s CEO Mohit Bhargava told ETEnergyWorld in an interview, adding that they are awaiting the final approval from Petroleum and Natural Gas Regulatory Board. The company, a subsidiary of the country’s largest power utility firm, NTPC, has signed several MoUs with different ports mainly for the purpose of green hydrogen export. The company has already tied up with green hydrogen electrolyser suppliers for up to 1,000 MW of green hydrogen plants and plans to expand into green methanol and solar.

AMERICAS

Debt pause  – Prime Minister Justin Trudeau announced Wednesday that Canada will offer climate resilient debt clauses in all sovereign lending, allowing countries to suspend debt repayments in the event they’re hit by a natural disaster. The pause would apply to payments on both the principal of the loan and the interest itself, but only on new loans, mirroring debt clauses offered by the World Bank in June this year. Prime Minister Trudeau announced the news during the Canada-CARICOM summit in Ottawa, which hosted the Caribbean regional economic and political bloc. At the same time, several Caribbean islands were placed under a tropical storm watch, prompting the departure of Prime Minister Roosevelt Skerrit of Dominica from the summit. (CBC)

Lone Star lease – Houston-based Milestone Carbon has reached an agreement with the Texas Pacific Land Corporation to lease more than 8,900 hectares of land and pore space for permanent geologic sequestration of CO2 in the Permian Basin, according to a Thursday press release. Located in Loving and Midland counties, this will support carbon capture and storage (CCS) projects at industrial facilities in West Texas, including natural gas processing and power plants. The agreement follows Milestone’s announcement of the development of a CO2 sequestration hub in the Midland Basin that will have the capacity to store approximately 30 mln tonnes of CO2.

Timber winners – Oregon City announced five winners in the 2023 Mass Timber Competition funded jointly by the Softwood Lumber Board and USDA Forest Service for a total funding of $2.2 mln, according to a Thursday press release. Proposals were required to demonstrate mass timber’s applications in architectural design and highlight its significant role in reducing the carbon footprint of the built environment. The 2023 winning projects were: CODA Detroit, Up@310 Lofts, Via/NWA IC Program, The Village SF Wellness Center, and Woolsey Gardens. Winning proposals exemplified new ways to design and construct mass timber buildings in the US at higher scale, as well as a commitment to strengthen the mass timber supply chain through the use of domestically sourced wood from sustainably managed forests. Award recipients have pledged to share with the broader design and construction community lessons learned during project phases, including cost analyses, life cycle assessments, and other research results, the release specified.

WA linkage – The Washington Department of Ecology (ECY) will be hosting two public meetings on Oct. 25 and Oct. 26 to gather input on potential linkage of the state’s carbon market with the California-Quebec joint carbon market. The public sessions follow ECY’s recent preliminary analysis of linkage, where the regulator cited several benefits and maintained that the alternative of independence could prove an existential threat to the programme. ECY is expected to release a preliminary decision in early November 2023. Interested participants can register for the online sessions here.

AVIATION

Shipping SAFc – Renewable fuels company World Energy has signed a seven-year offtake agreement to 2030 to provide 668 mln litres of sustainable aviation fuel (SAF) via sustainable aviation fuel certificates (SAFc) to international parcel delivery DHL Express, according to a Thursday press release. The deal will enable DHL to reduce approximately 1.7 MtCO2e on a lifecycle basis, equivalent to the company achieving carbon neutrality for one year. DHL has a 2030 target of reducing emissions to below 29 MtCO2e across Scopes 1, 2, and 3. SAFc’s environmental attributes will be separated from the fuel itself using a ‘Book & Claim’ model, minimising both logistical costs and emissions as the fuel does not need to be shipped around the world, the release noted. All volumes will be traced through an independent registry to ensure traceability of claims related to SAFc, and the fuel supplied to Los Angeles area airports, close to World Energy’s production facility in Paramount, California, the release detailed.

AND FINALLY…

In need of a new ice breaker – Russian invasion of Ukraine has disrupted climate research on the Arctic as most EU and NATO member countries refuse collaborations with Russian scientists, and restrictions in data sharing and limited communication serve as barriers for the scientific community in the Arctic that is known to be close-knit. Moreover, the war has “fundamentally broken” the logistic system underpinning Arctic research following the suspension of all activities by the Arctic Council – a pan-governmental group of Arctic nations formed in 1996 that includes Russia – which provided much of the support. Safety concerns are also prominent among scientists, and Russian researchers remain fearful of sharing data outside the country. One of the scientists, predicts that Chinese scientists will likely replace Western researchers to work with Russia. Nevertheless, the current state of the world calls for creative workarounds that may be necessary as countries settle into a new geopolitical order. (Bloomberg)

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