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
Washington to pursue linkage to California, Quebec carbon markets under WCI
Washington state will pursue linking its cap-and-invest scheme with California and Quebec under the WCI programme, the director of the state’s Department of Ecology (ECY) announced Thursday.
AMERICAS
WCI Markets: CCAs peak again, Washington linkage decision reverses WCA price gains
California Carbon Allowance (CCA) values once again reached a new all-time high, sustaining peak prices following last week’s cap-and-trade workshop announcement, while Washington Carbon Allowances (WCAs) maintained an upward trajectory until Thursday’s linkage decision with the broader WCI market.
US Senators propose bill to tax imports from high-emitting countries
A trio of Republican senators will introduce legislation Thursday to implement a carbon adjustment fee on imported products that result in heavy GHG pollution, a move sponsors say targets countries without comparable environmental standards, particularly China.
CCUS and DAC can’t bring down US power plant emissions due to EPA rules -Senators
The US EPA approvals process for state primacy over carbon capture utilisation and storage (CCUS) as well as direct air capture (DAC) are preventing their installation, potentially condemning fossil fuel power plants, US Senators told a committee hearing on Thursday.
Massachusetts GWSA emissions reach record low in Q3
Third quarter emissions under the Massachusetts Global Warming Solutions Act (GWSA) maintained a trend of historic lows shown throughout the year so far, according to data updated this week.
ASIA PACIFIC
China flags more lenient carbon permit borrowing rules for ETS participants
China has loosened the CO2 permit borrowing rules for regulated companies in its national emissions trading scheme, according to sources who have seen a new regulatory update distributed to power companies, as the government seeks to mitigate cost increases for power plants ahead of the year-end compliance deadline.
Malaysia’s carbon pricing instrument review to be concluded in 2024 -media
An ongoing carbon pricing instrument review in Malaysia is expected to be completed by next year, and will help the government choose between establishing a carbon tax or an emissions trading system to accelerate decarbonisation, local media reported Thursday.
Asia’s agricultural emissions could be cut by 840 Mt by 2030 with simple steps -report
Asia’s emissions footprint from food is high but variable nation-by-nation, however decarbonising it could be easier than in more complex industries such as aviation.
Australia Market Roundup: Former Pacific leaders lash Australia’s performance at L&D fund talks, Federal Court orders Santos to halt pipeline work at Barossa
A group of former Pacific national leaders have railed against Australia’s performance at recent UN talks attempting to establish a loss and damage fund, as the Federal Court has ordered oil and gas company Santos to halt pipeline work at its Barossa gas project.
VOLUNTARY
Developer says suspended Kariba REDD project is stable for now, denies financial malpractice
The suspended Kariba REDD project is financially stable for at least 12 months, according to the founder of Carbon Green Investments (CGI), the organisation that developed and runs the huge Zimbabwean avoided deforestation project, while stating that allegations of financial malpractice and illegal activities are groundless.
New community ownership models can restore integrity to the voluntary carbon market, says new project developer
A system-wide revamp is needed to ensure high-integrity and equitable outcomes from nature markets, according to the CEO of a new project development firm looking at both carbon and biodiversity credits.
Financier urges VCMI to simplify its carbon credit buyer integrity code
The Voluntary Carbon Markets Integrity Initiative (VCMI) should focus on simplifying its integrity guidance for carbon credit buyers if the stakeholder initiative wants to drive demand, an offtake investor told a webinar conference on Thursday.
EMEA
Euro Markets: EUAs plunge to one-year low before short-covering rally leaves market little changed
European carbon prices fell steadily to a one-year low by early afternoon on Thursday amid aggressive selling and despite a strong auction result, before recovering even more quickly as traders covered some of their short positions, generating a potentially bullish technical signal.
Analysts revise down expectations for EU ETS industrial emissions for 2023
EU ETS emissions from heavy industry are set to fall 7% in 2023 compared to a year earlier due to waning output particularly among steel and chemicals firms, analysis said in a report on Thursday that represented a substantial writing down of expectations set out earlier in the year.
Barclays returning to carbon market with head trader hire
Barclays is reportedly rebuilding its presence in the carbon market after retreating from them a little over a decade ago.
British tribunal upholds £24k UK ETS non-compliance fine against Bulgarian airline
A British tribunal has upheld a £24,200 penalty against a Bulgarian airline for failing to surrender sufficient carbon allowances under the UK ETS.
INTERNATIONAL
Taxes on fossil fuels, ships, and planes to be important income for new UN climate fund, says legal non-profit
Taxes and levies on fossil fuel production, shipping, and aviation will be an important alternative source of income for a global climate-related loss and damage fund, in addition to developed country government donations to developing nations facing the worst impacts, said a spokesperson for a legal non-profit ahead of a crunch meeting to set up the UN vehicle.
UN carbon crediting talks run late as some seek carve-outs for ‘transformative’ projects
The meeting of a body guiding the Paris Agreement’s carbon crediting mechanism ran late into the night on Thursday as experts wrangled over issues including whether to exempt some activities from being forced to ratchet up their ambition over time.
BIODIVERSITY (FREE TO READ)
European venture firm releases biodiversity impact measurement approach
A Berlin-based venture capital firm has released its approach to assessing biodiversity impact, although there are gaps in the methodology with some major drivers of biodiversity loss not addressed.
Researchers to build hive of data from bee projects to drive biodiversity conservation efforts
An Australian university is developing a centralised portal to better fill in knowledge gaps around bee data across underreported jurisdictions like Asia and Africa, a move expected to aid in data collection and conservation efforts.
‘Hyperspectral’ satellite nature impacts company raises €16.6 million
Finnish firm Kuva Space has raised €16.6 million ($17.6 mln) towards its goal of observing the condition of “any material” on the planet through launching 100 satellites by 2030.
Biodiversity Pulse: Thursday November 2, 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
- Deputy Representative, Africa and Middle East, Verra – Remote (Worldwide)
- Senior Manager, Accreditation Program Standards, Verra – Remote (Worldwide)
- Director, Forest Management Program Development and Innovation, Verra – Remote (Worldwide)
- Director, REDD+ Program Development and Innovation, Verra – Remote (Worldwide)
Or click here to see all job listings
—————————————————
CONFERENCES
Aviation Carbon 2023 – Nov. 6-7, London Heathrow: Join us for a unique networking forum for aviation sustainability experts and professionals. Now in its 11th edition, Aviation Carbon attracts over 300 delegates from 70 countries, with over 100 airlines and aircraft operators represented. Over 60 speakers will be hosting interactive panel discussions and workshops, to discuss key issues such as SAF, sustainability-linked finance, ESG, carbon removal technology, and the non-CO2 impacts of aviation on the climate. Don’t miss this opportunity to be part of a global conversation about the future of sustainable aviation – register here: https://www.aviationcarbon.aero/
—————————————————
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
Stark warning – James Hansen, the scientist who warned about global warming at Congressional hearings in 1988, led a study published this week saying that warming is accelerating faster than is currently understood, the Guardian reports. A key temperature threshold could be breached as soon as this decade as Earth’s climate is more sensitive to human-caused changes than scientists have realised until now, the study says. Actions needed to drive carbon intensity to zero, most importantly a rising carbon fee, are feasible but not happening due to the influence of fossil fuel interests on politics, said the study, published in the Oxford Open Climate Change journal.
Falling short – The shortfall of a $100 bln annual pledge by rich countries to help poorer nations adapt to climate change is now 50% higher than previously estimated, according to a UN agency report, as reported by Reuters. The $100 bln pledge made in 2009, which has not been fully secured, was aimed at helping developing countries both mitigate climate change by cutting GHG emissions and also to adapt to rising temperatures and sea levels. However, the annual financing shortfall for adaptation alone now stands at $194 bln to $366 bln, with existing financial flows reaching just $25 bln during the 2017-2021 period, UNEP said. Efforts to mobilise funds for adaptation will be a key talking point in COP28 negotiations later this month.
EMEA
Removing right along – The EU’s Expert Group on Carbon Removals has convened for their third meeting, focusing on the development of a Carbon Removal Certification Framework (CRCF) with specific criteria for certifying various carbon removal activities. According to Bellona Europa, experts discussed methodologies for Bioenergy with Carbon Capture and Storage (BECCS), Direct Air Carbon Capture and Storage (DACCS), biochar, and other techniques, emphasising the need for scientific input. The group agreed on the necessity for activity-specific certification criteria but also recognised the potential benefits of a modular approach that could simplify the process and promote cross-technology best practices. It was suggested that direct measurement validation, as proposed for enhanced weathering, could serve as a model for other methods. There were discussions on defining project boundaries to ensure all emissions from the carbon removal process are accounted for. For example, emissions from the production of concrete used in carbon mineralisation must be included to avoid underestimating the true impact. The meeting also highlighted uncertainties around the intended use of removal units and how they will fit into carbon markets, raising questions about their effectiveness as incentives for climate action. Ultimately, the group contended that while removal technologies are crucial for achieving net zero emissions, they should not replace but rather supplement emission reductions, aligning with the IPCC’s stance on the matter.
African heat – Africa’s geothermal energy sector is poised for significant expansion, with investments expected to reach at least $35 bln by 2050, according to Rystad Energy. This surge is set to propel the continent’s geothermal capacity beyond Europe’s by the end of this decade. Current projections by Rystad anticipate that Africa, with only 1 GW of geothermal capacity in 2023, will see a doubling, if not tripling, of this capacity by 2030 due to announced and anticipated projects. Kenya and Ethiopia are at the forefront of this growth, likely to constitute about 90% of the continent’s geothermal capacity. With the continent’s energy demand soaring, geothermal energy’s stability is attracting international attention, particularly in the East African Rift. This is set to increase the continent’s energy supply significantly, with predictions of a six-fold increase from 34 TWh to 222 TWh by 2050. For Africa to achieve a 13 GW geothermal capacity by 2050, Kenya and Ethiopia’s geothermal resources are essential. Kenya is on track to possibly exceed 8 GW capacity due to its geothermal wealth and growing expertise, while Ethiopia’s achievement of over 3.5 GW capacity depends on the success of key projects. The transition to geothermal energy is expected to elevate Africa to the third-largest geothermal power generator by 2030.
Water spill – Ghana will call on climate finance to address the economic damage inflicted by climate change after excess water spillage from the country’s largest hydroelectric dam led to the displacement of some 40,000 people, Bloomberg reports. Volta River Authority, which operates the 1,020MW Akosombo dam in the eastern region of Ghana, let out water between Sept. 16 and Oct. 30 after heavy rain filled the dam beyond its maximum capacity. Communities in seven of the West African nation’s 16 regions were affected by the floods, and the finance ministry will set aside 160 mln cedis ($13.4 mln) to rebuild the communities to have been submerged and to support displaced households.
ASIA PACIFIC
Super slash and burn – Shareholder activist group Market Forces released a report which found that Australia’s top 30 pension funds have back-tracked on their support for climate action, finding that most failed to back climate-related shareholder proposals that they voted on at company AGMs in 2022. The group pointed the finger at Commonwealth Bank Group Super, TelstraSuper, Hostplus, and Mine Super as the worst performing funds, saying all voted against more than 70% of climate proposals they took action on in 2022. It also said that one in five votes by super funds did not support climate action proposals that had significant investor support.
SAF for Singapore – Singapore will need more support to increase the proportion of sustainable aviation fuel (SAF) in its mix despite its willingness to embrace the fuel. The Civil Aviation Authority of Singapore (CAAS) completed a 20-month pilot of the Temasek-backed investment platform GenZero and Singapore Airlines (SIA). A statement by the three parties Thursday said more support is needed to drive adoption, even though operationally the city-state is ready to supply SAF. On an operational aspect, the pilot validated the process to bring SAF into Changi Airport. The end-to-end process includes procurement, blending of SAF with conventional jet fuel, as well as the safety certification and delivery of the blended fuel.
Farewell – Xie Zhenhua, China’s chief climate negotiator, is set to retire in December at the end of this year’s COP28 in Dubai, according to Reuters. Climate talks between China and the US broke down during the presidency of Donald Trump, and Xie quit as envoy a year later after serving as China’s top environmental official for years. The climate veteran returned as special envoy in 2021 after US President Joe Biden brought the country back into the Paris Agreement, and resumed formal talks with his counterpart John Kerry in July this year. Xie first earned some fame at the 2009 Copenhagen talks, when he burst into a backroom where Barack Obama was holding bilaterals to tell the US president in no uncertain terms what he thought about the Americans’ tactics at the summit.
Blue carbon data – TelePIX, a South Korean space startup, has entered an agreement with Polish space company SatRev to supply satellite imagery data, with a focus on blue carbon, it announced this week. TelePIX in a statement said it is aiming to introduce the world’s first blue carbon observation next year, which can be used to capture carbon data within the marine ecosystem, such as floating algae.
Unclear transition – Japan’s Electric Power Development (J-Power) will shut two 500MW coal-fired power plants at its Matsushima power station, an ageing facility that has been in operation for more than 40 years, to help achieve its 2025 target of cutting CO2 emissions by 9.2 mln tonnes, Reuters reports. The company has decided to close Unit 1 and suspend Unit 2 at the station by the end of FY2024 to make way for the GENESIS Matsushima project, though the timing of implementation of CCS, hydrogen, and ammonia co-firing remains unclear, according to green group Kiko Network. The GENESIS project is not based on international commitments to accelerate an exit from coal in response to the climate crisis, Kiko Network said.
AMERICAS
Carbon tax election – Canadian Prime Minister Justin Trudeau’s administration faces a vote in the House of Commons on extending nationwide the three-year federal carbon tax relief for home heating oil that Ottawa announced last week, several news outlets reported. The carbon tax carve-out helps Atlantic Canadians as 30% of homeowners in the region still use furnace oil to heat their homes. Conservative Party leader Pierre Poilievre is pushing for a pause on all forms of home heating, until Canadians can have their say in “a carbon tax election”. The Conservative leader said he will be advancing a non-binding motion in the House of Commons next week, forcing all MPs to vote on extending the pause on home heating oil to all Canadians, something he is pressing for NDP Leader Jagmeet Singh to back, given his shared criticism that the current policy pivot is unfair. (CTV)
Motion attracts opposites – Canada’s New Democratic Party (NDP) will support the Conservatives on a motion to pull the carbon price off all home heating until after the next election. Conservative Leader Pierre Poilievre introduced the motion today, asserting that the government’s recent decision to halt carbon pricing for home heating oil for three years is a divisive policy to save liberal seats in Atlantic Canada. NDP House leader Peter Julian added that his party had failed in its attempt to amend the motion to lift the goods and services tax from home heating fuels as well, and the party will instead vote for the Conservative motion in an effort to ensure fairness. (The Canadian Press)
Safe sequestration – The US administration announced $48 mln in grants to 25 interested US states and Tribes through the Infrastructure Law to implement Underground Injection Control (UIC) Class VI programmes, with an allotment of $1.9 mln for each programme, a press released noted. Under the Safe Drinking Water Act, Class VI programmes ensure that groundwater resources are protected while supporting CO2 sequestration to reduce GHG emissions.
Testament to investment – The US $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) to improve infrastructure has disproportionally benefitted Republican states, especially when it comes to green power projects, Energy Monitor reported Thursday. Republican states received 60% of IIJA green project funds, as Red states continue to receive more wind and solar funding from the CHIPS act and the IRA, separate analysis shows. The IIJA passed the House by a vote of 228-206, with just 13 Republicans voting in favour, and passed the Senate 69-30 with just 13 Republicans supoorting it. The top recipients of funds from the act and their 2020 presidential party votes are Wyoming (R) $1.95 bln, Texas (R) $1.75 bln, California (D) $1.41 bln, Kentucky (R) $570 mln, New York (D) $480 mln, Louisiana (R) $440 mln, Tennessee (R) $400 mln, North Carolina (R) $380 mln, Georgia (D) $360 mln, and Missouri (R) $310 mln.
Sputtering start – Sustainable aviation fuel (SAF) is having a hard time taking off in the US due to its high price compared to traditional jet fuel and low profit margins for producers, Reuters reported Wednesday. President Joe Biden said he planned on the US producing 3 bln gallons of SAF by 2030, and is currently on track to produce 2.1 bln gallons by the end of the decade, according to S&P Global Commodity Insights. Sustainable fuel exploded in usage in 2022, reaching 15.8 mln gallons, or 0.1% of total usage.
AVIATION
Great job – According to the latest data from ICAO, member states have kept their CO2 emissions below the set baseline for CORSIA in both 2021 and 2022. Last year, emissions amounted to 272.38 Mt, significantly under the scheme’s baseline of 346.76 Mt. In 2021, due to the COVID pandemic emissions were even lower at 167.14 Mt – less than half of that year’s baseline of 341.38 Mt, based on the involvement of 88 states. The baseline is derived from the total CO2 emissions for all state pairs subject to offsetting requirements in 2022, which included data from 107 states. CORSIA’s first two phases, which run from 2021 to 2026, operates on a voluntary basis for participating states.
AND FINALLY…
Or the highway – Byway, a company offering travel options without flights, has introduced a carbon labelling system to highlight the environmental impact of their train, bus, and ferry holiday packages. This move follows a survey by Byway and OnePoll, which found that 42% of UK travellers are opting for non-flying travel options to lower their carbon emissions, a figure that rises to 65% among Londoners and 61% for Generation Z. This new feature allows travellers to see the carbon footprint of their journey and accommodation, making it easier to compare with the emissions from flying similar distances, thereby promoting transparency and informed decision-making regarding the environmental effects of travel. (Travelwires)
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
