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TOP STORY
South Pole ditches troubled Kariba REDD project amid media storm
South Pole has pulled out of the troubled Kariba REDD forest protection project in Zimbabwe with immediate effect, it said on Friday, following earlier news that certifier Verra was halting credit issuances and launching an investigation into the project amid allegations of trophy hunting and financial malpractice.
INTERNATIONAL
Green Climate Fund approves 15 projects in latest funding round
The UN’s Green Climate Fund (GCF) approved $736.4 million of funding across 15 climate projects in developing countries this week, support that is expected to be boosted to $3.6 billion once co-financing is included.
VOLUNTARY
Carbon removal industry players eye oil industry scale by 2050
Standardisation and scale are the watchwords of the growing carbon removal industry, seen as key by its proponents in the path to net zero, but getting it into compliance markets will be essential, a conference heard this week.
Industry backers say they can navigate roadblocks in carbon removal tech, supply chain GHGs
While carbon removal technologies and measures to address supply chain emissions still hold numerous challenges, industry proponents are maintaining an optimistic outlook for the future, a conference heard this week.
ASIA PACIFIC
CBAM seen as key driver in Asian carbon pricing developments as countries cooperate with EU
Carbon Border Adjustment Mechanisms, or CBAMs, are one of the key drivers of carbon pricing development across Asia as nations increasingly seek to cooperate with the EU on its policy slated to enter into force in 2026, a conference heard Wednesday.
AU Market: Spot market ACCU prices becoming less reflective of value as OTC deals dominate trading activity
Australian Carbon Credit Unit (ACCU) transactions have largely been bilateral over the counter (OTC) deals in recent months as the brokered secondary market has been trading sideways, according to analysis.
CN Markets: CEA trading stable, CCER liquidity improves following regulatory news
China’s national carbon market saw prices remain stable over the past week with a relatively high trading volume, while voluntary trading volume ticked up as sentiment has been lifted by the multiple regulatory updates recently.
Government guidance seen needed to stimulate demand for carbon credits in Japan
More government guidance is needed to unleash demand for carbon credits from Japanese companies, despite Tokyo’s recent efforts to support the development of the country’s voluntary market, a conference heard Thursday.
AMERICAS
Chevron acquisition of US oil company won’t affect $750 mln carbon credit deal -Guyana VP
The $750-million dollar deal between New York-headquartered Hess and the Guyanese government for the purchase of tens of millions of avoided deforestation carbon credits will not be affected by the former’s acquisition at the hands of the global energy giant, Guyana’s vice president said Thursday.
RGGI stakeholders question feasibility of renewable energy projects, changes to compliance deadlines
Members of the public, non-profits, and energy producers want the RGGI cap-and-trade system to better model the impacts of renewable energy projects, and also reconsider a proposed full annual compliance surrender, according to newly released comments submitted to the scheme’s ongoing RGGI’s Third Program Review.
Washington cap-and-invest allowance allocation to industrials ticks up in 2024
Washington state industrial emitters will receive slightly more free allowances under the cap-and-invest programme in 2024 than this year, with some individual economic sectors seeing fluctuations of several hundred thousand permits, according to government data published Friday.
Compliance entities, speculators swap North American carbon positions on V23 and V24 allowances
Regulated parties entered the third week of growing their V23 California Carbon Allowance (CCA) and RGGI Allowance (RGA) holdings while reducing V24 net length, as financial players continued to build V24 net positions, US Commodity Futures Trading Commission (CFTC) data showed Friday.
EMEA
EU leaders pressured to boost clean industrial value chain over the next five years
EU leaders tasked Brussels to accelerate work to safeguard the competitiveness of the bloc’s clean technologies in the conclusions adopted on Friday following their European Council summit, responding to pressures from the industry for the upcoming legislature.
EU takes stock of its climate progress since Paris Agreement with tepid optimism
Levels of optimism on whether the EU is on the right track eight years on from signing of the Paris Agreement diverged amongst key climate stakeholders at an event in Brussels on Friday, as the experts prepared for this year’s UN negotiations where they deem it crucial to secure a global fossil fuel phaseout commitment.
Euro Markets: EUAs post 2.5% weekly loss, hit 5-month low as market trades in narrowest range since April 2021
European carbon prices posted a weekly 2.5% loss and set a new 5-month low on Friday despite trading in their narrowest five-day range since April 2021, reflecting a lack of momentum or conviction in either direction as traders took to the sidelines ahead of the weekend, while energy markets were little changed as fundamentals remained broadly unchanged.
BIODIVERSITY (FREE TO READ)
Governments need to fix financial plumbing to stop biodiversity loss, says not-for-profit
Now is the time for regulation to hold the financial sector to account on nature loss, and tools like biodiversity credits and patient capital can catalyse action, according to a Switzerland-based NGO.
FEATURE: Sounding out solutions – acoustics a frontrunner for measuring ecosystem health in new biodiversity credit mechanisms
Using acoustic monitoring devices to collect data about ecosystem health based on the sounds of different animals living in an area is a powerful and cost-effective way of measuring biodiversity and should be one of the primary data collection methods in new biodiversity crediting systems, say industry sources.
EU signs roadmap for Congo forest partnership
A roadmap for implementing a forest partnership between the EU and the Republic of Congo has been signed by the European Commission’s environment chief Virginijus Sinkevicius.
Canadian province launches old growth forests crowdfunding venture with C$300 mln
The government of British Columbia has launched a “unique” crowdfunding initiative for protecting old growth forests with C$300 million ($217 mln) of initial capital.
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CONFERENCES
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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
One-shot Dubai – The UAE will not double up on hosting the UN annual COP climate conference by holding next year’s summit, according to leadership involved in the event, Reuters reported. Next year’s COP29 climate summit is supposed to be held in Eastern Europe, but Russian opposition to holding the event in a UN country has left the event without a home – and spurred media reports that the UAE might step in after hosting COP28 in Dubai next month. If a host for COP29 cannot be agreed, the location could revert to Bonn, Germany, where the UN climate secretariat is headquartered.
Delhi heat – India is unlikely to sign onto a global pledge to reduce cooling-related emissions at the upcoming COP28 UN climate talks meeting, citing the need to have affordable cooling, two government officials told Reuters. The pledge to cut cooling-related CO2 emissions by at least 68% by 2050 compared with 2022 levels was co-developed by the COP28 host UAE, and it would require major investments by countries to shift to sustainable cooling technologies and also raise the cost of such products.
AMERICAS
Affordability fail – Two of Canada’s conservative premiers say Ottawa’s decision to exempt the carbon levy on heating oil fails to address affordability needs in Alberta and Saskatchewan. Liberal Prime Minister Justin Trudeau announced Thursday that the revenue-neutral C$65/tonne carbon fee would be exempt for three years on home heating oil, a move that largely helps those in Atlantic provinces as it’s the primary source for home heating. However, Saskatchewan Premier Scott Moe and Alberta Premier Danielle Smith say the exemption should also be applied to natural gas, as the majority of people in the provinces use it to heat their homes. (Canadian Press)
Captured enough – Canada’s natural resources minister Jonathan Wilkinson informed that subsidies for carbon capture are unlikely to be increased, citing substantial proposed tax credits at present. Meanwhile, the provincial government of Alberta is planning to announce its own credit programme along with a federal plan at COP28, according to Premier Danielle Smith, but a major hurdle for the industry is determining which level of government will underwrite contracts for difference that would guarantee a minimum carbon price needed to make projects financially viable. While discussions about those contracts are ongoing, Wilkinson hopes to “be in a position to actually have something to say with Alberta and Pathways in the near term.”
Michigan energy battle – Democrats in the Michigan Senate advanced a number of bills to transition to more clean energy sources and address the state’s energy reliability and affordability concerns, despite fierce pushback from Republicans, reports Michigan Advance. This included legislation to modify the state’s clean energy and energy waste reduction standards, provide the Michigan Public Service Commission (MPSC) with additional priorities for considering regulating energy companies, and create an office to facilitate transitions from fossil fuel to clean energy jobs. The bills now move to the Democratic-controlled House, where minority Republicans have pledged to fight over natural gas policy. Each of the bills passed along party lines, and Democrats rejected an array of amendments from Republican lawmakers related to delays in the implementation and provisions that would suspend proposed clean energy standards if energy rates in the state increased past a certain percentage upon implementation.
ASIA PACIFIC
New partnership – Ogaki Kyoritsu Bank (OKB), a regional financial institution in Japan’s Gifu Prefecture, has teamed up with domestic offset provider Bywill Inc to integrate carbon credit purchases into its services for clients, it announced Friday. Under the partnership, OKB will introduce its business partners that are interested in carbon credit creation or carbon trading to Bywill, which has been working with other Japanese financial institutions including Aozora Bank and Chugoku Bank.
Territory Targets – Australia’s Northern Territory government has committed to reducing its operational GHG emissions by 47% by 2030. A statement from the government said it recognised the need to lead by example when it comes to emissions reduction and decarbonisation. It is also looking to source half of its electricity demand from renewables by 2030.
A gift – Head of Energy at Australian telco Telstra said the growth of negative electricity pricing events in Australia’s main grid is a “gift” to business that invites them to be flexible with demand, Renew Economy reports. Telstra Energy Head Ben Burge made the comments during a panel discussion at a conference in Melbourne. He said the company was thinking about where it could locate data centres to take advantages of negative prices. Burge added that the company was well on track to sign up enough solar and wind to equate to its annual electricity use by 2025. The company is also one of the largest national purchasers of carbon credits to fulfil its “carbon neutral” pledge.
Clean fuel – Indonesia’s national oil company Pertamina has launched a new collaboration with peer Garuda to develop sustainable aviation fuel (SAF) to help the nation meet its net zero goal date of 2060. The company’s SAF will use palm oil components, it said. “Pertamina, as a leader in the energy transition, plays a role in building an environmentally friendly ecosystem. By developing green fuels, we are determined to carry out our mandate in energy sovereignty and meet Indonesia’s needs. “One of them is the SAF product, as the future for the aviation industry,” Pertamina president director Nicke Widyawati, said.
EMEA
Iberian exit – The share of Portugal-based utility EDP’s electricity output from renewable sources will rise to more than 90% next year from 85% now, after a decision to close one coal-fired plant in Brazil and three in Spain, CEO Miguel Stilwell said on Friday. EDP said it will sell 50% of its 904 MW coal-based Abono unit in Spain. As part of its mid-2025 coal exit aim, it has requested authorisation to close one Abono unit and convert the other to gas, as well as to close its two remaining Spanish coal plants. (Reuters)
AND FINALLY…
Diner’s club – Diners are being hit with voluntary carbon footprint charges on restaurant bills to “counterbalance the environmental impact” of meals, the UK’s Telegraph reports, referring to a British scheme taken up by dozens of prominent restaurants called Carbon Friendly Dining and backed by retail consultancy Lightspeed. It aims to tackle global warming by charging each cover £1.23 to pay for fruit trees to be planted in countries such as Ethiopia, Brazil, and the Philippines through a partner tree planting scheme GiftTrees.
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