Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here
TOP STORY
FEATURE: Primary voluntary carbon investment holds up in 2023 even as prices crash
Despite the uncertain future facing the voluntary carbon market, early-stage investment has held relatively firm in 2023, with some in the market pointing to an emergent ‘flight to primary’ trend, as investors seek to avoid reputational risk in secondary and tertiary credit buying and instead channel capital directly into project development.
INTERNATIONAL
UN risks adopting too rigid approach in calculating carbon savings from cookstoves, warn project developers
The UNFCCC has come under criticism from project developers for proposing a broad brush approach to improving cookstove carbon crediting methodologies, which the industry says lacks sophistication and fails to use accurate local data in calculating carbon savings.
Experts lay out the state of carbon removals, call for increased stringency in fossil fuel regulations
Global carbon removal leaders informed of regulatory and infrastructural challenges within the sector, while a policy expert took stage to urge heavier regulations for the fossil fuel industry in order to meet Paris Agreement targets at a conference on Tuesday.
Countries to start procuring carbon removals for climate targets at COP28, says expert
Nations are to start procuring carbon dioxide removals at the upcoming UN climate summit for use against their nationally determined contributions (NDCs), an expert in the sector said Tuesday.
Current carbon capture growth trajectory insufficient to meet net zero, fossil demand to peak by 2030, says IEA
Stronger policy support for carbon removals and capture, utilisation, and storage (CCUS) technologies is required to scale capacity to meet 2050 net zero goals, according to the International Energy Agency’s flagship energy report, which also forecasts peak fossil fuel demand this decade based on the current outlook.
Nations need to ‘re-strategise’ international cooperation on climate action to bridge gap between ambition, implementation -think-tank
A new evaluation of government decarbonisation efforts ahead of the UN’s first-ever ‘global stocktake’ paints a grim picture of the current state of climate action, leading the authors to urge nations to ‘re-strategise’ international cooperation at the upcoming COP28 summit to bridge the gap between ambition and implementation.
Multilaterals are too dominant in global climate, development funds -paper
Global development mechanisms like the Green Climate Fund (GCF) have become too easily dominated by multilateral financial organisations at the expense of the small and vulnerable nations they are designed to support, an academic paper has claimed.
EMEA
EU’s carbon removal certification bill passes first Parliament step with wide support
The EU’s first draft legislation defining a framework for certifying carbon removals was backed almost unanimously during a vote in the European Parliament’s cross-party environment committee on Tuesday.
EU lawmakers rubberstamp F-gas 2050 phase out bill, adopt position on cutting heavy vehicle emissions
The European Parliament’s environment committee (ENVI) on Tuesday formally adopted a provisional political agreement to phase out by 2050 fluorinated greenhouse gases (F-gases) and adopted a draft report to strengthen EU CO2 emission standards for new heavy-duty vehicles.
EU launches plan to bolster wind power rollout, reports progress on energy security and emissions cuts
The European Commission unveiled plans to bolster the EU’s faltering wind power capacity rollout on Tuesday, while reporting that the bloc was on track in its efforts to exit Russian fossil fuels despite patchy national progress on decarbonisation.
RWE notches 24% drop in fossil-based power output over first nine months of year
RWE reported a drop of almost a quarter in its ETS-covered thermal power output over the first nine months, according to preliminary results published on Tuesday that showed an acceleration of coal decline over the past quarter.
EU nations’ energy and climate plans inadequate for climate goals, say NGOs
EU nations’ updated National Energy and Climate Plans (NECPs) are largely inadequate not only to align with the Paris Agreement’s 1.5C global warming limit, but also to comply with the bloc’s 2030 target to cut emissions by 55%, a coalition of NGOs warned on Tuesday.
Euro Markets: EUAs little changed amid weaker gas as market awaits direction from positioning data
European carbon prices moved sideways on Tuesday after the market had touched a two-week low on Monday, with prompt gas prices giving up early gains as both markets reflected a generally bearish fundamental outlook, while EUA traders looked ahead to Wednesday’s Commitment of Traders report.
AMERICAS
WCI jurisdictions to show carbon price impacts of allowance budget cuts following Q4 auction
California and Quebec will host a public workshop shortly after the Q4 auction next month to discuss how different cap reduction scenarios will affect allowance prices in the WCI-linked carbon market, the jurisdictions announced Tuesday.
California watchdog urges greater scrutiny of cap-and-trade allowance adjustments, post-2030 programme structure
California should better detail its proposed allowance budget cut scenarios with the necessary adjustments in supply as it relates to broader climate goals, as well as elements of its cap-and-trade programme design after the next decade, the state’s carbon market watchdog said Tuesday.
California power emissions accelerate year-on-year decline in September
California electricity sector CO2 year-on-year output decreased at an even faster pace during September, reaching a ten-year low for the month as shares of renewable energy and hydroelectricity continued to build on their 2022 levels, according to data published Monday.
New York announces largest-ever investment in renewable energy by US state
New York announced Tuesday that 25 projects will be granted awards to promote the development of offshore wind and other forms of renewable energy, in a move that seeks to revitalise developers struggling under economic pressures and protect the state’s climate goals.
US govt clarifies rules for $35 mln CDR credit purchase, discloses price goal
The US Department of Energy (DOE) on Tuesday clarified submission guidelines for its forthcoming purchase of $35 million worth of carbon removals, as the government revealed what it is aiming to pay in price per tonne.
US companies double down on oil outlook after Chevron’s $53 bln Hess deal
The bifurcation of the global oil patch grew this week once again as Chevron bought its US peer Hess for $53 billion, giving it control of billions of barrels of reserves offshore Guyana, one of the most prolific oil provinces in the world, and signalling American oil companies have very different views of the energy transition compared to other independent majors.
ASIA PACIFIC
China releases four methodologies for revamped CCER scheme
China on Tuesday published methodologies for four project types that will be eligible to generate Chinese Certified Emissions Reductions (CCERs), providing clarity for developers and investors.
Shanghai to auction off 1 mln carbon permits
The Shanghai government will auction off 1 million carbon allowances under its emissions trading scheme at the end of this month, with the price floor likely to be set below market levels.
VOLUNTARY
US cement technology firm, clean energy supplier partner to potentially reduce 1 bln tonnes of CO2 annually
A partnership between US-based cement and concrete technology firm and a global renewable energy and consultancy could accelerate the development of carbon offsets from the manufacturing construction industry, the companies claimed Tuesday.
Even in severe drought, enhanced rock weathering on croplands shows promise for carbon capture -researchers
Adding pulverised volcanic rock to cropland, even in severe drought conditions, could significantly contribute to carbon removal from the atmosphere, according to a new study.
Needle-leaf trees most abundant globally, but broadleaves store more carbon -study
A groundbreaking analysis, the first of its kind to globally count and map different tree leaf types, has revealed that needle-leaf evergreen trees make up the largest share of the world’s tree population, but broadleaf evergreen trees contribute the most to fighting climate change.
BIODIVERSITY (FREE TO READ)
Global progress on deforestation not just off-track but getting worse, groups say
A new study produced by a collection of NGOs, think tanks, and academics said that international commitments to halt deforestation have not yet been backed up by sufficient action or funding to tackle the challenge.
EU-funded Align project launches biodiversity measurement guidance
Three sets of guidance for measuring biodiversity covering direct operations, supply chains, and ecosystem conditions have been launched by the EU Commission-funded Aligning Accounting Approaches for Nature (Align).
‘First ever’ positive impact of biodiversity fund measured
Biodiversity over an area equivalent to at least 3,000 hectares was supported by ASN Impact Investor’s biodiversity fund last year, according to the “first” measuring of positive nature impact by an investment manager, it said.
Australia’s nature repair market legislation pushed back again
Australia’s nature repair market bill will not be re-introduced to parliament until 2024 at the earliest, after the senate committee examining the legislation requested another extension to its reporting deadline.
Biodiversity Pulse: Tuesday October 24, 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).
—————————————————
Premium job listings
- Director, REDD+ Program Development and Innovation, Verra – Remote (Worldwide)
- Director, Forest Management Program Development and Innovation, Verra – Remote (Worldwide)
- Senior Manager, Accreditation Program Standards, Verra – Remote (Worldwide)
- Senior Director, Business Development (US), Carbonfuture – Remote
- GHG Management, Environmental Specialist, First Environment – Sacramento
- Project Administration Specialist, Climate Change, First Environment – Sacramento
Or click here to see all job listings
—————————————————
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
California-China MOUs – California Gov. Gavin Newsom’s office on Tuesday inked the first of five MOUs on his weeklong trip to China, a deal with the province of Guangdong that will renew and expand a 2013-era partnership to refine cap-and-trade markets, decarbonise industry, promote biodiversity, and transition to zero-emission vehicles. The other climate MOUs on the trip will look broadly similar to the one that Dee Dee Myers, director of Newsom’s office of business and economic development, signed in Guangzhou. (Politico)
VOLUNTARY
Bago cash – The governor of Niger State, a large region of Nigeria, has said that it will reclaim all its forests to tap into the global carbon credit market, local media reports. Umar Bago said there is free money in the global carbon credit market but that the state must aggregate all its forests to tap into that income stream, adding that it has no reason to be poor. Trees in the forest are being cut down as firewood when the jurisdiction could earn substantial money and also protect the environment, he said.
Watch-ful scrutiny – European environmental and consumer groups are clamping down on Apple’s claims that its latest devices are ”carbon neutral”, following the iPhone maker’s decision to call some Apple Watch models its ”first-ever carbon neutral products”. The US tech giant is using the purchase of carbon credits to cancel out the 7-12 kg of GHG emissions behind each new watch, which will make up for the emissions linked to the product’s manufacturing, shipping, and charging over its lifetime, Apple says. The credits will be bought from carbon-absorbing timber plantation and reforestation projects on land previously deforested for cattle ranching in South America. However, critique about the integrity of such carbon projects and EU plans to ban ”neutrality” claims by 2026 based on the purchase of carbon credits casts a shadow over Apple’s green marketing efforts. (FT)
ICROA adds on – The International Carbon Reduction and Offset Alliance endorsed Cercarbono, a voluntary carbon certification programme focused on climate mitigation. The standard facilitates and guarantees the registration of Climate Change Mitigation Programmes or Projects, the certification of emissions, and the registration of the carbon credits generated by these initiatives.
Incoming credits – dynaCERT, a Canadian cleantech company, has agreed on a timeline with verification company Earthood Services to advance its methodology development and review process. The company aims to validate carbon credits under Verra as generated by its technologies designed to reduce carbon emissions in diesel engines. An assessment report on the methodology for improved efficiency of fleet vehicles and combustion engines is anticipated to complete by Dec. 31, 2023.
Partnering projects – Carbon credit management company Patch has partnered with carbon crediting platform Puro.earth to integrate the Puro Registry into Patch’s marketplace and software. As a result of this partnership, Patch claims to be the first carbon credit management software to directly integrate a major external registry into its services.
Non-native monocultures – Verra is opening a public consultation on the use of non-native monocultures in the its VCS programme. Currently, projects implementing afforestation, reforestation, and revegetation, as well as wetlands restoration and conservation activities, are not allowed to introduce non-native monocultures. Those who wish to provide public feedback can do so until Nov. 26, 2023.
EMEA
Bottleneck blues – Onshore grid bottlenecks in northwest Germany have led to a quarter of offshore wind power generation being curtailed in the first three months of 2023, reports German media based on the government reply to a parliamentary inquiry. Other methods of renewable energy generation were barely curtailed, at just 3% of onshore wind and 2% of solar, said the news service. The bottleneck in question for offshore wind power is located in a region between the states of Lower Saxony and North Rhine-Westphalia, and is unlikely to be resolved before 2027, when a new line is set to be finished. (Clean Energy Wire)
Can’t see the oil for the trees – Algeria’s state oil and gas company Sonatrach plans to plant 420 mln trees over 10 years, by way of a $1 bln natural carbon storage project, reports Reuters. The major gas exporter aims for renewables to account for 30% of its energy mix by 2035, Algeria’s Ennahar TV reported.
Where does the money go? – The EU’s €723 bln Recovery and Resilience Facility (RRF), also known as the EU’s recovery fund set up following the COVID-19 pandemic, has weaknesses in its monitoring system that make it insufficient for measuring overall performance, according to a new report by the European Court of Auditors. Although the existing system helps to track member states’ progress towards the reforms and investments they agreed upfront in exchange for funding, it fails to provide a full picture of how the funded projects contribute to the RRF’s objectives, such as making the European economy greener and more resilient.
ASIA PACIFIC
Marine going green – Malaysia aims to achieve 40% low-carbon fuel penetration for marine transport by 2050 to meet the International Maritime Organisation’s timeline for decarbonisation. Malaysian transport minister Anthony Loke Siew Fook said that decarbonisation of the industry would present an opportunity for the Southeast Asian country to become a green fuel bunkering hub. The marine transport operations will also include e-ammonia and e-methanol in an effort to comprise diversified fuels. Further, the minister said that with the acceptance of Sustainable Aviation Fuel (SAF), the Malaysian aviation industry is already working on reducing carbon emissions. He added that in order to address climate change, it was important that the country’s transportation system is low or zero-emission, energy efficient, and affordable, New Straits Times reported.
Seagrass sales – Maldives will for the first time sell carbon credits in the international market next year, in a bid to generate over MVR800 mln ($52 mln) to the state, according to proposals issued by the finance ministry, as reported by local media. According to a 2026-2024 fiscal statement released by the finance ministry last week, new revenue measures for next year include protecting Maldives’ wetlands and regions rich with seagrass, to sell carbon credits in the global market after calculating the carbon storage of these areas. (Atoll Times)
Coalbed discovery – China National Offshore Oil Corporation (CNOOC) has announced the discovery of a deep coalbed methane (CBM) field in northwest China’s Shaanxi Province, with proven reserves exceeding 110 bln cubic meters, according to state-owned news agency Xinhua. The coal seam of the Shenfu deep CBM field is about 2,000 metres deep and the thickness of a single layer is between 6.2 metres and 23.3 metres, with average gas content per tonne of coal reaching 15 cubic metres, according to CNOOC.
Sourced locally – Hydrogen company Energys located in the Australia state of Victoria has unveiled its third generation, locally-manufactured hydrogen fuel cell, Pv Magazine reports. Five of the 10 kW hydrogen fuel cell generators will provide backup power for Telstra’s remote telecommunications towers as part of a pilot programme in Victoria to replace diesel gensets. The company says it is already constructing a green hydrogen production facility, with funding provided by the Victorian government’s A$6.6 mln ($4.2 mln) Renewable Hydrogen Commercialisation Pathways fund.
AMERICAS
Calgary carbon – Calgary-based low-carbon project developer Reconciliation Energy Transition (RETI) on Tuesday announced it has granted Sumitomo Corporation of Americas (a subsidiary of Tokyo-based multinational trading company Sumitomo Corporation) the exclusive right to acquire a significant equity interest in RETI’s East Calgary Carbon Transportation & Sequestration Project. The initiative, also known as the CTS Hub, is a proposed CO2 transportation and sequestration development project that is expected to involve constructing compression capacity, a CO2 pipeline network, and injection and monitoring wells to support permanent sequestration of CO2 in deep saline aquifers at a location east of Calgary.
Bury me at the Rodeo – California’s Contra Costa County Board of Supervisors on Tuesday decertified the 2022 Environmental Impact Report (EIR) for the Phillips 66 (P66) Rodeo Renewed refinery conversion project that is the subject of a current lawsuit. Green groups sued the county last year, challenging the certification of the EIR and approval of the project on the grounds that the county violated the California Environmental Quality Act. A judge this month said P66 can continue construction on retrofitting its Rodeo facility to biofuels production while the permitting issues are resolved, but it cannot commence commercial operations, which are expected in Q1. In addition to decertifying the original EIR, the Board of Supervisors on Tuesday posted the draft revised EIR for public comment until Dec. 8.
AND FINALLY…
Jamie Dimon’s stealing all my lines – Jamie Dimon, CEO of JP Morgan, spoke critically of central banks and touched on topics of ESG and carbon at a financial forum in Saudi Arabia on Tuesday. While he spoke favourably towards investing with environmental, social, and governance (ESG) metrics in mind, he took aim at the shortcomings of government in integrating arbon management with ESG approaches. “If you look at the way we’re going about it, it’s almost like governments want to whack-a-mole and force it – but no carbon taxes, no rational way to go about it.” (The Hill)
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
