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TOP STORY

EU’s carbon border plans force companies to disclose ‘trade secrets’, says industry

Companies and non-EU governments impacted by the EU’s carbon border adjustment mechanism (CBAM) said the legislation is forcing them to disclose ‘trade secrets’ about their supply chains, and that the lack of regulatory detail is hindering their ability to prepare, an event in Brussels heard on Wednesday, as a Turkish official confirmed that the nation plans to launch an ETS next year.

VOLUNTARY

ANALYSIS: Voluntary action on airline non-CO2 impact takes shape as EU obligations loom

The first forward purchase agreement has been signed for carbon credits for avoiding the creation of contrails, a form of non-CO2 pollution created by flying, though some airlines remain hesitant about the climate impacts even as initial regulations loom.

VCMI announces early adopters of its code for carbon credit buyers

Five companies have been named as early adopters of the VCMI’s code on making credible claims about voluntary carbon credit use, the cross-stakeholder body said on Wednesday.

North American developers partner to build ocean-sequestering DAC project in Canada

Two North American carbon removal project developers have partnered to deploy units that capture CO2 and sequester it in the ocean off the coast of Canada.

Startup opens innovative water-generating carbon capture pilot facility in California

A Los Angeles-based startup has initiated a groundbreaking commercial pilot project in California, which it said is introducing the world’s first water-positive CO2 removal system.

British energy firm teams up with climate tech company to boost carbon credits offering

A British energy company has teamed up with a carbon market digital infrastructure provider to facilitate the sales of credits to its customers, including those generated from its own projects.

US-based voluntary carbon standard targets methane-leaking oil and gas wells

A US-headquartered voluntary carbon standard and registry this week announced the acceptance of credit applications under its newly-developed methane capture and reclamation protocol.

Environmental consultancy develops crediting methodology for carbon removals using marine microalgae

An environmental consultancy has developed a “rigorous” crediting methodology to quantify and verify CO2 removals achieved using marine microalgae.

MRV technology gap may create confusion about data mismatch, expert says

The technology gap between the private sector and regulators could create a data mismatch, despite advancements in digital measurement, reporting, and verification (dMRV), a conference heard Wednesday.

Forest carbon stocks vary with latitude and tree species, study reveals

An expansive study by the Natural Resources Institute Finland (LUKE) has shed light on the varying carbon stocks within dry heath forest ecosystems across the country, highlighting a stark contrast between northern and southern regions as well as between pine- and spruce-dominated forests.

AMERICAS

Democrats win slim majorities in Virginia’s general elections

Virginia Democrats are on track to hold the state Senate and win back the House of Delegates following Tuesday’s legislative election, putting the brakes on Governor Glenn Youngkin’s (R) agenda.

US federal lawmakers introduce soil carbon sequestration legislation

A pair of US lawmakers from opposite sides of the aisle introduced legislation in the House of Representatives on Tuesday to garner federal government support for interagency work around soil carbon sequestration, research, and monitoring.

Coalition commends US CO2 pipeline safety standards, provides additional recommendations

A coalition for carbon management has put forward safety-focused proposals to scale the CO2 pipeline infrastructure, while reviewing the sector’s safety record.

Fostering nascent CO2 removal industry could bring big economic benefits for Canada -report

Scaling up its nascent CO2 removal industry could be pivotal to Canada meeting its long-term climate targets and is predicted to bring with it substantial economic benefits including some 330,000 new jobs and a $143-billion boost in GDP by 2050.

California compliance offset issuance rebounds, but DEBs’ supply tightens

California compliance offset issuances almost doubled compared to ARB’s prior distribution, once again surpassing last year’s pace, state data published Wednesday showed, although no new issuances were tagged with direct environmental benefits to the state (DEBs), resulting in record high premiums for DEBs-tagged units.

Ducks Unlimited leads tripartite alliance to develop Mississippi River Valley forest carbon project

Ducks Unlimited has partnered with two other US-based organisations to launch a collaborative initiative to reforest over 3,000 acres of land in the Mississippi River Valley, focusing on restoring bottomland hardwood forests and capturing an estimated 400,000 tonnes of CO2 over the next four decades.

ASIA PACIFIC

Japan to debut climate transformation bond in 2024

Japan will issue its first climate transformation bond next year to drive decarbonisation of five key sectors and enable public-private partnerships, and ultimately not just drive its own decarbonisation but much of Asia’s.

Inpex plans CCS carbon credits for Indonesia LNG project

Japanese oil and gas firm Inpex plans to generate and sell carbon credits from its Abadi LNG carbon capture and storage project in Indonesia, a conference heard Wednesday.

Fonterra to cut intensity of on-farm emissions by 30% by 2030

New Zealand dairy co-operative Fonterra announced Thursday it is targeting a 30% intensity reduction in on-farm emissions by 2030, as a coalition of the country’s business leaders have said they are doing the heavy lifting to reduce emissions in the country.

AU Market: ACCU delivery failure a key market risk, analysis says

Worsening climatic conditions leading to carbon credit issuances failing to materialise has been labelled a key risk that is being overlooked by the Australian carbon market, according to analysis released this week.

SK Market: Drab demand sees Korean monthly auction fail to sell out again

Fewer than half of the CO2 allowances on offer at Wednesday’s South Korean auction were sold, as demand remains dim amid oversupply and regulatory uncertainty.

Australian carbon fund manager appoints new CEO

A Sydney-based carbon fund manager has appointed a new CEO to oversee a A$100-mln fund to earn Australian Carbon Credit Units from premium environmental plantings.

EMEA

EU new enlargement plans urge neighbour nations’ to align climate policies

Countries seeking EU membership must align with the bloc’s climate policies, including its ETS, according to a set of enlargement plans presented by the European Commission on Wednesday that were light on specific requirements.

Euro Markets: EUAs snap losing streak after Commitment of Traders data shows funds hold record net short

European carbon prices recovered from early lows after the weekly Commitment of Traders data showed investment funds have amassed the largest total short position in two years and the largest-ever net short position, but the scale of the reaction left many participants still unsure about which way prices are likely to move.

BIODIVERSITY (FREE TO READ)

US Farm Bill should front up funds for agroforestry, coalition says

A potential environmental game-changer, agroforestry has so far been overlooked and under-incentivised according to a US farming group, but the upcoming farm bill is an opportunity to switch up the rules.

UK asset manager Fidelity to expand sustainable oceans and water investments

Asset manager Fidelity International plans to expand its range of sustainable strategies to cover nature-related themes including oceans and water.

Five free map datasets launched on agricultural impacts

Five free-to-access mapped datasets to help companies understand the land, carbon, and biodiversity impacts of their agricultural supply chains have been launched by data agency Vizzuality.

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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

Matter of character – Founder of iron ore giant Fortescue Metals Group and Australia’s richest person, Andrew Forrest, called on government and business leaders to commit to stop burning fossil fuels by 2035 at the Bloomberg New Economy Forum in Singapore. “We have all the technology, it is all there … The resource we are short of is character of leaders,” said the clean energy advocate. Building up new industries like green hydrogen requires government support and business leaders must take risks, he said. In a separate interview with Bloomberg TV on Wednesday, he said Fortescue’s board would meet over the next two weeks to discuss five potential hydrogen or ammonia projects, from the US to Kenya and Norway, by the end of the year. (Bloomberg)

EMEA

Extended emergency – The EU is considering extending emergency energy measures introduced last year due to the ongoing risk of supply shocks amid conflicts in the Middle East and vulnerabilities in the region’s gas infrastructure, Bloomberg reports. Despite reduced gas prices and well-stocked inventories preparing the EU for winter, Energy Commissioner Kadri Simson highlighted the need for vigilance and continued diversification of energy sources to lawmakers. Additionally, Simson emphasized the importance of maintaining progress on renewable energy as part of the EU’s Green Deal, with plans to present an action plan for enhancing and broadening power grids by addressing regulatory, financial, and permitting challenges.

Less CO2, more money – The world’s biggest cement maker Holcim expects to increase net sales to more than CHF10 bln ($11.1 bln) by 2026 in Europe, as well as lifting returns, through increasing sales of low-carbon cement and concrete as well as carbon capture that will help reduce CO2 by 60% per net sales compared to 2020. The cement maker is making the most of EU Green Deal incentives, having received €800 mln in EU funding for six projects that aim to capture 5 million tons of CO2 per year by 2030. Carbon capture projects will both be cheaper than buying CO2 certificates and will see Holcim expand its offering of low- and zero CO2 cement, which the company expects to fetch a price premium of as much as 35% over conventional products over time. (Bloomberg)

Lusaka signing – The EU and Zambia have signed a roadmap document to implement their one-year-old forest partnership during a visit by EU climate chief Wopke Hoekstra to Lusaka. This builds on the recent initiatives under the EU’s Global Gateway aid programme that included draft deals with Angola, DRC, and Zambia, for the EU to secure a critical raw materials value chain and develop a transport corridor via the Angola’s port of Lobito. Today’s roadmap flags two new German and Czech-steered projects due to be contracted this year totalling €21 mln, with France and Sweden involved in others due in 2024.

Balancing biomass – The European Environment Agency (EEA) has released a report highlighting the urgent need to manage biomass use within the EU effectively. With the European Green Deal setting ambitious climate and environmental objectives, there’s a call for prioritising biomass applications due to its role in various sectors and the possibility of supply shortages. Biomass, derived from agriculture and forestry, is in high demand for products and energy in industries such as construction, transport, and textiles, while also being crucial for nature conservation and carbon sequestration. The report titled ‘The European biomass puzzle – Challenges, opportunities and trade-offs around biomass production and use in the EU’ examines how biomass can contribute to achieving climate goals and the impact of climate change on biomass production. It notes the challenge of balancing these demands with the limited supply constrained by factors like land availability, vegetation growth, and global trade. The EEA stresses the necessity for strategic decision-making now to ensure the health of ecosystems and augment carbon sinks to meet 2030 and 2050 targets. This includes integrating nature protection with biomass production, avoiding unsustainable practices, and promoting a more circular use of biomass resources. Deciding which biomass feedstocks and products should be prioritised will require careful consideration of their environmental, economic, and social impacts.

ASIA PACIFIC

Bowen backs H2 aircraft – Australian Energy and Climate Minister Chris Bowen Wednesday announced financial support for hydrogen-fuelled aircraft for first responders to use when helping citizens in remote areas. AMSL Aero takes $5.43 mln from the Australian Renewable Energy Agency (ARENA) for a total project cost of $10.86 mln. The yet-to-be-developed five-seater Vetiia plane will have a far greater range than other hydrogen-fuelled models at up to 1,000 km, or more than the distance from Melbourne to Sydney.  “The Albanese government is proud to be investing in this high-tech aviation project in parallel to more than $2.5 bln to get a domestic renewable hydrogen industry off the ground,” Bowen said. “AMSL’s aircraft could become an important tool for emergency services personnel, particularly as we face more frequent natural disasters. At the Carbon Market Institute’s tenth annual emissions reduction summit in Sydney in September, Bowen told the room he believed aircraft electric planes would be in service in Australia by the end of the decade. These would likely be short-haul flights between Sydney and the nation’s capital Canberra, which is currently several hours’ drive. “We’ll see them not in the next couple of years, but over the next decade we will. I’m very bullish about Australia’s opportunity for sustainable aviation fuel.” SAF is considered the best way for the emissions-heavy aviation sector to decarbonise. 

Indonesia firms up coal closure – Indonesia has committed to a deadline to begin retiring some of its coal-fired power stations, and will do so at COP28 in Dubai next month, the Jakarta Post reports.  The Energy and Mineral Resources Minister said outgoing president Joko Widodo had confirmed this week and the nation aims to retire at least one by the end of 2023. Indonesia released guidelines for its $20 bln Just Energy Transition Partnership last week, which outlined its emissions reduction commitments but also reaffirmed its plan to keep ‘captive’ coal-fired power stations out of this work for now. Captive stations power particular projects, such as nickel processing, and are not part of the nation’s electricity grid. 

Troubled Tritium – Australian EV fast-charger manufacturer Tritium has announced it will close its Brisbane manufacturing facility, and slash staff numbers in an attempt to put a stop to its free-falling share price on the US-based Nasdaq stock exchange, Renew economy reports. The company’s share price has dropped 90% since it listed two years ago, warning a delisting from the exchange. The company said on Wednesday that it would consolidate its manufacturing operations in Lebanon, Tennessee, with a view of being profitable in 2024. It has a fleet of more than 14,500 chargers across 47 countries.

AMERICAS

Carbon tax pushback – New data from the Canadian Federation of Independent Business (CFIB) revealed that 85% of businesses oppose the federal carbon tax and want it to be scrapped. Small businesses have been raising their concerns with the carbon tax for years, said President of CFIB Dan Kelley, noting that they pay about 40% of the costs of the carbon tax, but the federal government has promised to return only 10% to small businesses. The federation is now asking the government to overhaul the carbon tax system by adopting measures such as additional carbon tax exemptions and halting future carbon tax increases.

Just the two of US – US Senator Roger Wicker (R) has withdrawn support from the Foreign Pollution Fee Act that was introduced by Senator Bill Cassidy (R) to impose fees on carbon-intensive industrial and energy imports. Wicker decided not to cosponsor the legislation after reviewing its final text, explained the senator’s spokesperson. Wicker’s support of carbon border tariff was shunned by some conservative groups that inferred the legislation would increase prices on Americans and contradict the GOP’s messaging on inflation. Senator Lindsey Graham (R), one of the three initial sponsors, remains in support of the bill, citing that he feels “comfortable that we ought to make India and China pay a price.” (E&E News)

Powering Texas – Texas voters approved a constitutional amendment authorising a new $10 billion Texas Energy Fund to provide low interest loans to build gas-fired power plants, develop microgrids, and modernise parts of the state’s electric grid.  The amendment was approved by almost a two-thirds margin, as supporters reasoned that the state requires new power generation to maintain electric reliability and support the Lone Star state’s expanding economy. On the other hand, opponents of the proposition argue that it amounts to a giveaway to fossil fuel power plant developers at a time when Texas should be investing more in energy efficiency.

Logging in revenue – Washington Department of Natural Resources will purchase 9,000 acres (3,600 ha) of forestland in the Wahkiakum County to generate revenue from logging, marking the largest state land purchase in more than a decade, The Seattle Times reported Wednesday. The transaction was approved by the State Board of Natural Resources on Tuesday, and will cost the state $55 million. Money for the purchase will come from proceeds from previous land transactions as well as from revenue generated by the state’s new auctions of air pollution allowances to businesses. The sale is expected to take place in mid-December.

Improving forests – Invert, a carbon reduction and removal company, has signed a partnership agreement with Mexican carbon project developer The Earth Lab to invest in and co-develop Improved Forest Management (IFM) projects in the Yucatan Peninsula, according to a press release. The announcement noted that the terms of the agreement cover investment and development of five regional projects on Ejido land, traditional land collectively owned and worked on by local communities. The partners aim to protect over 100,000 ha of forest through such public involvement. The projects will be registered with the Climate Action Reserve.

VOLUNTARY

Selling fast – Occidental said it’s seeing strong demand for CO2 removal credits from companies seeking to offset their emissions, providing a steady income stream for its novel carbon-capture project in West Texas. Credits generated by Stratos, as the project is named, are between 65% and 70% sold out through 2030 even though it’s not yet built, Michael Avery, president of Oxy subsidiary 1PointFive, said on a call with analysts Wednesday. There’s a “strong pipeline” of customers beyond those already signed up, he added, according to Bloomberg. Oxy CEO Vicki Hollub said her company is also planning to sell technology licences for building such facilities, with the aim of encouraging widespread adoption and rapid scaling. With a budget of $1.3 bln, Stratos is expected to start in 2025, marking the beginning of the company’s ambitious DAC rollout. Oxy plans to invest $600 mln annually through 2026 on its own DAC projects, hoping to support over 1,000 projects globally. Stratos received a $550 mln investment from BlackRock this week, while ADNOC has funded a study for a similar project in the UAE.

INVESTMENT

Muni risks – Intercontinental Exchange (ICE) and Databricks have initiated a strategic collaboration to enhance the use of ICE’s municipal bond and climate risk data through the Databricks Marketplace. The partnership aims to provide investors with powerful metrics that consider the potential impacts of climate change on municipal bond investments, thus aiding in risk management and decision-making processes. Databricks offers advanced analytics and processing power that allows for efficient analysis of large datasets, which the pair say is critical in optimising portfolios and developing sophisticated machine learning and AI strategies. This collaboration also promotes data-driven innovation and transparency in the financial industry, providing tools for a resilient future.

SCIENCE & TECH 

Heating up – 2023 is “virtually certain” to be the warmest year in 125,000 years, EU scientists said today, after data showed that last month was the world’s hottest October in that period. Last month broke through the previous October record, from 2019, by a huge margin of 0.4C, the scientists said. Globally, the average surface air temperature in October was 1.7C warmer than the same month in 1850-1900, which Copernicus defines as the pre-industrial period. The record-breaking October means 2023 is now “virtually certain” to be the warmest year recorded, the EU’s Copernicus Climate Change Service (C3S) said. The previous record was 2016 – another El Nino year. (Euractiv)

AND FINALLY…

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