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TOP STORY
Negotiators strike deal on forming UN climate loss and damage fund
National officials agreed recommendations on the design of the new climate loss and damage fund late on Saturday, though US objections could tee up problems when governments consider the plans at the year-end COP28 UN climate summit.
VOLUNTARY
Wildlife Works suspends staff at Kasigau REDD project over claims of sexual abuse, harassment
Developer Wildlife Works Carbon (WWC) has suspended three male employees after an internal investigation into sexual abuse, harassment, and exploitation of women at its Kasigau Corridor REDD project in Kenya, it said in a statement late Friday.
VCM Report: Nature-based standardised carbon contracts hammered by REDD scandals
Nature-based standardised carbon credit prices suffered another hammer blow last week after certifier Verra suspended issuance and launched an investigation into another REDD project, although the news came too late to gauge the impact on the wider avoided deforestation sector.
Corporate net zero targets on the rise, but most not Paris-aligned -report
The number of publicly-listed companies setting a net zero emissions target has risen by 40% compared to a little more than a year ago, according to a global analysis published on Monday by a research consortium that includes the UK’s University of Oxford, but only 4% of these targets are aligned with the Paris Agreement.
EMEA
Denmark’s climate minister wants agriculture in EU ETS-style market -media
The EU agriculture sector should be covered in an EU ETS-inspired market that rewards least polluting farmers, Denmark’s climate and energy minister Lars Aagaard said in an interview.
UK government set to mandate annual oil and gas licensing rounds
The UK government is set to put into law annual licensing rounds for offshore oil and gas production, the Department for Energy Security and Net Zero has announced, provided tests are met that ensure facilities “support the transition to net zero”.
Turkey to launch ETS next year, says minister -media
The Turkish minister of energy and natural resources has said the country’s ETS will be put into operation next year, according to domestic media reports, and will be run by the electricity and natural gas market operator.
Europe’s short-haul aviation industry faces “existential threat” from regulations, customer perception, says executive
European domestic and inter-regional airlines are under threat from punitive emissions regulations and changing customer perceptions around short-haul flights, and risk becoming economically unviable depending on the speed at which net zero technologies become available, an airline executive told a conference on Monday.
Euro Markets: EUAs extend losses to one-year low as buying insufficient to absorb short sales
European carbon permit prices dropped to a new one-year low on Monday as traders continued to build short positions amid overwhelming limited demand, while energy markets extended their recent losses as the demand outlook remained moderate due to mild weather, healthy wind generation, and high gas storage levels.
UK lines up support package for its remaining integrated steelworks -media
The UK government is due to announce later on Monday a support package to convert the nation’s remaining coal-based steelmaking to run on electricity, public broadcaster BBC reported.
AMERICAS
California emissions recede in every sector under cap-and-trade in 2022
GHG output under the California cap-and-trade programme declined in 2022, falling year-on-year in every sub-sector, according to data published Monday, with annual emissions slipping below trader expectations.
US court dismisses Washington power producer’s cap-and-trade lawsuit
A US district judge dismissed a natural gas-fired power producer’s legal challenge to Washington state’s cap-and-trade programme, effectively closing the case following nearly a year of judicial proceedings, court documents showed Friday.
Canadian motion for carbon pricing pause on all forms of home heating fails
A non-binding motion brought forward by federal Conservative Opposition Leader Pierre Poilievre calling on the Liberal government to exempt its carbon pricing relief for all forms of home heating failed Monday in Parliament.
US dairy farmers get $22.9 million to reduce methane emissions and sell carbon credits
A national dairy farmer cooperative received $22.9 mln for a project to cut down on methane emissions by implementing advanced feed additives in 50 operations, incorporating carbon credits sales into the product value chain, and demonstrating climate neutrality on dairy farms.
RGGI Market: RGAs break all-time high, but hover below CCR amid programme uncertainty
RGGI allowances (RGAs) broke a record settlement price for the benchmark contract over the previous week before receding slightly, as the Cost Containment Reserve (CCR) trigger continued to restrict prices and Pennsylvania’s absence from the programme was confirmed.
ASIA PACIFIC
Australia to pass London Protocol amendments bill after govt gains cross-party support
The Australian parliament is set to pass the government’s legislation to allow the transboundary transport and underground storage of CO2, with the Liberal party joining Labor in support of the bill in the Senate.
South Korean carbon project developer announces IPO
A major carbon credit project developer and trader in South Korea will get listed on a domestic exchange later this month, and plans to use IPO revenue to further expand its presence in the international voluntary market.
Japanese trading house to expand forest carbon portfolio in Malaysia
A major Japanese trading house has established partnerships with two Malaysian companies for the potential operation of forestry projects in the Southeast Asian country, which could restore biodiversity and create carbon credits, it announced Monday.
Woodside Energy progresses Western Australian carbon for conservation scheme
Woodside Energy has progressed to the next stage of a scheme by the Western Australian state government to encourage the private sector to earn carbon credits in exchange for funding conservation work.
Australian booking website posts new customer offsetting record
An Australian flight booking website has posted a new record for the number of customers that have chosen to offset their flights and accommodation, but it is still microscopic compared to the overall number of bookings made on the platform.
Oil-rich Brunei set to propose carbon pricing roadmap, eyes voluntary market initially
Brunei Darussalam’s government is set to propose a carbon pricing roadmap this week, with the oil producing nation likely to favour a voluntary approach initially, a senior official told a conference on Monday.
INTERNATIONAL
Norway eyes potential first Article 6 credit purchase next year
Norway may make its first purchase of international carbon credits under the Paris Agreement in 2024, as part of efforts to reduce emissions beyond what it has pledged in the 2015 climate pact.
Only 5% of listed companies disclose measurable climate plans -report
An analysis of over 1,000 publicly listed companies worldwide shows that only one in 20 discloses quantified plans on how they will meet their greenhouse gas targets, a leading British university’s research centre found.
BIODIVERSITY (FREE TO READ)
Canada, British Columbia, First Nations ink billion-dollar biodiversity agreement
Canada’s federal government, the province of British Columbia (BC), and the First Nations Leadership Council have signed off on a shared approach to implementing habitat restoration and species-specific actions in the province.
Australian bank to end land clearing support from 2026
Australia’s Westpac on Monday announced it will end lending to the conversion of natural forest to agricultural land, as it became the nation’s first bank to release a natural capital position statement and pledge an ambition to become nature positive.
UN arm asks governments to account for $10 trillion hidden costs of food
The Food and Agriculture Organization of the United Nations (FAO) is approaching governments to ask them to account for the hidden $10 trillion annual environmental, social, and health costs of the global food system, shows a report published Monday.
COMMENT
COMMENT: We can’t afford to get this wrong – Ensuring high integrity in agricultural carbon credits is imperative for fighting climate change
The time is now to harness high integrity crediting of agricultural soil carbon projects in global mitigation efforts, but projects must be guided by considerations derived from the Integrity Council on the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCP), writes Max DuBuisson, VP Sustainability Policy and Engagement at Indigo Ag.
BAVARDAGE
London-based carbon trader leaves Mercuria for Hartree
A London-based environmental products trader has left commodities trading house Mercuria to join rival Hartree Partners, Carbon Pulse has learned.
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Job listings this week
- *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)
- *EMEA Policy Editor, Carbon Pulse – Brussels/London/Remote (in Europe)
- Carbon Removal Buyer, Microsoft – Redmond, WA
- Carbon Finance Project Manager, Nexus for Development – Phnom Penh
- Carbon Project Manager Koala Friendly Carbon, Climate Friendly – Remote (Australia)
*Premium listings
Or click here to see all listings
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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/.
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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
Not too late – The CEO of Germany’s largest power company RWE insists the country can still achieve an earlier coal phaseout by 2030 if the government acts quickly to allow the construction of alternative power sources. There’s still time and policymakers should use it, company head Markus Krebber told German newspaper Frankfurter Allgemeine Zeitung. To replace the country’s remaining coal plants well before the official end date in 2038, Germany must install new gas-fired power plants to provide electricity only when wind, solar, and other renewable installations fall short, Krebber added, pointing out that these should gradually be transformed to run on hydrogen in the 2030s. (Clean Energy Wire)
Flying high – Ryanair forecast in quarterly results on Monday a record annual profit due to its busiest-ever summer, the FT reports. As carriers across Europe report record profits, the biggest question facing the industry now is whether the boom will carry into next year, which in turn will affect the strength of demand from the sector for EUAs. The carrier said Q4 looked strong and was pleased with early sales for summer 2024, but cautioned that its financial guidance was highly dependent on the absence of any unforeseen adverse events, such as the conflicts in Ukraine or Gaza, for example. Ryanair, the largest airline for EU flights, told Carbon Pulse in August it had already purchased allowances to cover its obligations until the end of 2025.
New gas for South Africa – South Africa will accelerate plans for 3 GW of gas-fired power generation to help plug an energy deficit caused by its ailing coal-fired units, electricity minister Kgosientsho Ramakgopa said on Sunday, Reuters reported. The country has suffered from continuous blackouts due to state power utility Eksom’s coal-fired plants. South Africa is also seeking to extend the life of its 40-year old 2 GW Koeberg nuclear plant by 20 years from its scheduled shut down next year, and the country expects more than 5.5 GW of new renewable energy projects to come online by 2026.
Italian resilience – The European Investment Bank (EIB) and Italian bank Intesa Sanpaolo signed a €100 mln finance contract to support the green transition of the public sector and publicly owned companies. This will enable Sanpaolo’s IMI corporate and investment banking division to promote investments totalling €200 mln made by local and public authorities. The money will be used for buying environmentally friendly buses, renovating and improving water supply networks and infrastructure, and ameliorating sorted waste collection. The EIB and Intesa Sanpaolo resources may also be used for projects funded by the Italian national resilience and recovery plan.
ASIA PACIFIC
Revving up renewables – Sembcorp will invest $7.76 bln to support renewable energy growth, which equates to 75% of total investments from 2024 to 2028, Reuters reports. It plans to expand to nameplate installed renewable capacity of a vast 25 GW in the four years and its portfolio is already made up of 61% renewables. “Sembcorp will invest in capabilities to position itself in low-carbon energy, low-carbon feedstock, and carbon management. These include the production and consumption of hydrogen and its derivatives,” it said Monday.
Fast moves from hydrogen player – Fresh from encouraging drill results at Australia’s first dedicated hydrogen well, junior Gold Hydrogen announced two non-binding processing agreements Monday. It has signed on Wasco Energy and H2Site to collaborate on a proof-of-concept hydrogen pilot project close to its Ramsay-1 well location on South Australia’s Yorke Peninsula. Last week, the company reported encouraging, if nascent, results from drilling its well, and it plans to ‘spud’ follow up Ramsay-2 later this month. Natural, or native, hydrogen is a relatively new concept but is considered the latest frontier in development of the clean burning molecule. Gold listed on the Australian Securities Exchange at the beginning of the year. “The ‘concept’ simply being that if natural hydrogen can be produced from the subsurface as part of a raw gas stream, then that raw gas can be processed at surface to yield a high purity hydrogen gas, which can be used as an energy source,” Gold said. “The MOU’s outline how the company will work with Wasco Energy and H2Site to review the suitability of current hydrogen purification systems to facilitate a saleable hydrogen product to be compressed on site. As a proof-of-concept, the compressed hydrogen could then be sold into the local market or used for power generation (eg. via a hydrogen fuel cell).”
Up to A$1 bln – Singapore-based AGP Sustainable Real Assets announced it has received a strategic funding injection from alternative investment firm US-based Stonepeak, which will enable it to launch a new investment strategy targeting what it described as “the intersection of agriculture, natural capital, and renewable energy”. AGP said the total investment from Stonepeak could reach A$1 bln ($650 mln), and is expected to close by the end of the year. AGP said Stonepeak would help boost the growth of its portfolio, as well as the energy transition and sustainable community infrastructure. AGP is currently developing or operating some 12 GW of renewable energy assets globally, according to the company.
First of its kind – Inner Mongolia has undertaken a forest carbon project based in an open-pit coal mine, the first of its kind in China, according to a release by the Inner Mongolia Academy of Forestry Science. The area to be included in the forestry project encompasses around 4,400 Chinese mu (293 hectares), including the addition of a 50-mu forest. The proposed project is expected to generate 22,514.2 tonnes of emission reduction over the 30-year crediting period, the institute said.
New partnership – Japanese agricultural project developer Green Carbon has entered an agreement with two regional banks, Hokuriku Bank and Hokkaido Bank, to work on carbon credit-related businesses, it was announced Monday. The alliance seeks to support the creation of carbon credits in the country and act as an intermediary between credit suppliers and potential buyers, according to the statement.
A 100 pilots – China’s National Development and Reform Commission (NDRC) on Monday issued a pilot CO2 peak plan, under which 100 cities and industrial parks around the country will pilot policies, projects, and green transformation approaches that can help the country meet its Paris target. Local officials were asked to develop new approaches and gain experience and practices to “accelerate the construction of a new development pattern”, though without much in terms of specifics.
Joining in – The government of Indonesia’s Southwest Papua province over the weekend said it should participate in forest carbon trading as a means to strengthen the local economy. Stakeholders and businesses should understand the procedures, requirements, and calculations involved to achieve the best results, the secretary of the local Directorate General of Sustainable Forest Management said, according to Antara News.
AMERICAS
Considering it – Alberta Member of Parliament (MP) Randy Boissonnault said that officials are having conversations on the topic of granting the Alberta government an extension to its transition to a net-zero grid by 2035, a federal goal that Environment Minister Steven Guilbeault has previously insisted his government will not make individual provincial exceptions for, nor shift its target. At present, the province’s electricity production is composed of about 89% fossil fuels, namely natural gas and coal. (CTV News)
VOLUNTARY
New toys – Carbon ratings agency BeZero Carbon has launched a new risk-adjusted portfolios tool to help customers with carbon credit strategies that align with net zero, Fintech Finance News reports. The tool implements BeZero’s discounting methodology that enables customers to examine their carbon credit portfolios and calculate how many credits of a given quality they’d need to purchase or retire to make climate claims.
SCIENCE & TECH
The final EU frontier – The European Space Agency (ESA) and the European Commission’s Directorate-General for Climate Action (CLIMA) are intensifying their collaboration to utilise space-based technology and data in the fight against climate change. They are focusing on leveraging the capabilities of the EU’s Copernicus programme and ESA’s initiatives like Space for a Green Future Accelerator to inform and support climate-related policies, sustainable economic development, and societal benefits. They said Earth observation satellites are vital in this endeavour, providing systematic data that underpin services like the Climate Change Service, which aims to make the EU the first climate-neutral continent by 2050, as per the European Green Deal. ESA’s Climate Change Initiative and FutureEO programme are enhancing understanding of climate processes and fostering innovative Earth observation applications. The partnership will explore improved ways to monitor and report GHG emissions and other environmental concerns, as well as develop tools like the Green Transition Information Factory to assist in decarbonisation and support the EU’s Land Use and Forestry Regulation.
Young trees struggle – A new scientific study suggests that droughts will play a leading role in young trees dying off and will impact species at warmer climate thresholds. The authors of the study suggested planting more resilient species, such as the limber pine, which is more resistant to drought simulations than other species. They also recommended more active forest management to ensure ‘juvenile’ trees can move on to the next phase of their adult life without dying off.
AND FINALLY…
Energy efficient AI – Nearly one-third of total US carbon emissions are attribued to powering buildings, with a hefty price tag of about $190 bln a year – and a Utah-based generative AI startup has launched a product that claims it can cut these energy costs by about one-third. PassiveLogic’s autonomous building infrastructure platform, also known as its “Quantum Lens” technology, claims to achieve major energy efficiencies without the need to retrofit windows or install equipment such as heat pumps. The generative AI works alongside “digital twin” technology — a digital simulation of a real life object — to predict a building’s operational needs and then optimize the delivery of energy, reports Axios. It’s a solution that PassiveLogic founder and CEO Troy Harvey says is essential in order to achieve energy efficiencies because “existing solutions just don’t scale”. The startup is backed by chip manufacturer Nvidia’s venture arm and collaborated with Apple in its product development. Current clients include large customers, with at least another year before it can expand supply to single family or mid-sized residential building clients.
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