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TOP STORY
Indian govt releases draft rules for planned intensity-based emissions market
The Indian government on Wednesday released draft rules for its planned compliance carbon market, eyeing an intensity-based scheme rather than one with an absolute cap on greenhouse gas emissions.
AMERICAS
Courts dismiss three green groups in Virginia RGGI repeal lawsuit, transfer case of fourth petitioner
A circuit court of Virginia dismissed three of four plaintiffs participating in a legal challenge to Governor Glenn Youngkin’s (R) repeal of the state’s RGGI programme, and transferred the appeal of the fourth plaintiff to another court.
California environmental justice body recommends limitations to cap-and-trade programmes, experts explore facility-specific caps
California’s Environmental Justice Advisory Committee (EJAC) to state regulator ARB on Thursday recommended several limitations to the cap-and-trade programme, while experts from a Washington, DC-based think tank presented their findings on facility-specific emission reductions.
Federal cap-and-trade programme to complement IRA could cement US path to 2030 climate goals -think-tank
Implementing a federal cap-and-trade policy in the US would complement the Inflation Reduction Act and help reduce both air pollution and retail electricity prices, ensuring the country reaches its climate goals for 2030.
Colorado lags on GHG reduction, but can accelerate efforts, analysis says
Colorado will fall behind its 2030 GHG mitigation target by almost 11 million tonnes a year, but a series of legislative actions and regulatory rule changes can speed up progress, according to new analysis.
US diplomat eyes bilateral Canadian relations to address the energy transition
Canadian allyship key to energy security and supply chain concerns as the country ramps up its industrial response to climate change, a US official noted at a conference on Thursday.
Canadian oil and gas emissions cap a question of how, not if -panel
Canadian oil sands producers accept the need for a cap on oil and gas emissions, if done appropriately, which could also drive further investment into carbon-cutting technologies, attendees at a climate conference heard Thursday.
WCI Markets: CCAs sell off into auction, WCA volume high on rolling positions
California Carbon Allowance (CCA) values made new all-time highs on two occasions before sharply declining in the week preceding the fourth quarterly auction, while Washington Carbon Allowances (WCAs) prices dropped as positions were rolled, market participants said.
Brazilian state opens dialogue with private sector to map out carbon offset projects
A Brazilian coastal state is launching a listening mechanism to engage companies and civil society organisations in developing carbon offsetting projects and other climate solutions.
ASIA PACIFIC
Australia to commit funding to Pacific Resilience Facility, as observers urge it to do more on climate change
Australian Prime Minister Anthony Albanese has confirmed his country will commit cash to a Pacific Island-focussed funding facility for climate change adaptation and mitigation work, as observers urged rich nations in the region to uphold and increase their climate commitments.
Japanese energy security body pushes again for ASEAN carbon credit regime for CCS
Carbon credits for carbon capture and storage across the Southeast Asian region will underpin the economic development of what a Japanese government body sees as a key decarbonisation tool.
Japanese carbon developers tap into Indonesia despite concerns over data availability and policy uncertainty
A number of Japanese project developers are looking to expand their presence in Indonesia’s growing offset market, though limited data availability and policy uncertainties could prove challenging for newcomers, a conference heard Thursday.
EMEA
German coalition government agrees relief package for electricity-intensive companies
Germany’s three-party coalition government agreed on an additional five-year package to extend relief for the nation’s EU ETS-covered industry struggling with high electricity prices, it announced on Thursday.
Spain’s agriculture ministry to analyse soil carbon for future credit system
Spain’s Ministry of Agriculture, Fisheries and Food (MAPA) has embarked on an extensive project to analyse the carbon content in agricultural soils across 16,000 plots.
Euro Markets: Prices make largest gain in a month as speculation grows over end to downward pressure
European allowance prices posted their largest daily gain in more than four weeks on Thursday as the market broke out of its recent range, with traders speculating whether the recent price decline driven by short selling has come to an end, while energy prices rose on a combination of colder weather and lower renewable generation.
INTERNATIONAL
Norway, Senegal sign Article 6 MoU
Norway and Senegal on Thursday signed a Memorandum of Understanding (MoU) to cooperate under Article 6 of the Paris Agreement, the second such deal the Scandinavian country signs in just two weeks.
VOLUNTARY
New methane metric a greenwashing risk for livestock sector, say campaigners
The livestock industry is championing a new metric for estimating its climate impact that allows it to minimise reported emissions while putting poorer nations at a disadvantage, according to a sustainability campaign organisation that is urging a different approach as the sector comes increasingly into focus.
VCMI launches drive to spur agriculture carbon projects in Latam, Caribbean
The Latin America and the Caribbean (LAC) farming sector has immense potential for attracting green investment through the voluntary carbon market, the multi-stakeholder Voluntary Carbon Market Integrity initiative (VCMI) and partners asserted in a policy brief published on Thursday.
Kenya land rights dispute spills over into carbon market -media
Long-running tensions between the Kenyan government and the Indigenous people of the Mau Forest in the country may have spilled over into the carbon market, with reported claims by human rights lawyers that hundreds of members of the Ogiek community are being evicted from their ancestral lands so the government can profit from carbon credit projects.
AVIATION
CORSIA to face Southeast Asian supply shortage due to low number of projects, airline says
There are not enough carbon projects that meet the airline industry’s offset requirements to meet the aviation sector’s demand, a Southeast Asian airline company has said.
BIODIVERSITY (FREE TO READ)
EU co-legislators reach provisional deal on nature restoration law
European co-legislators found a provisional agreement late Thursday night on a bill to restore at least 20% of the bloc’s land and sea areas by 2030, after a long day of closed-door negotiations.
UN seabed authority reaches no conclusion on deep-sea mining rules despite mounting support for ban
The UN body responsible for the world’s seabed continued to hold discussions on a mining code for the extraction of precious minerals from the deep sea up to the last day of its Council meeting on Wednesday but failed to finalise them, as a Canadian miner announced on the same day that it would continue tests in the Pacific Ocean.
Australia to learn from US EPA under environmental MoU
Australia has signed a Memorandum of Understanding (MoU) with the US to use its Environment Protection Agency to inform the establishment of Australia’s own federal environment watch dog.
Biodiversity credit blockchain partnership secures Costa Rican project
A blockchain-based biodiversity credit partnership between three companies has secured a small project area in Costa Rica, they announced Thursday.
Chinese companies announce country’s first deforestation-free soybean import deal
China’s Cofco and Mengniu Group have announced the first Chinese deal to import deforestation-free soybeans from Brazil, with the agreement facilitated by the World Economic Forum’s Tropical Forest Alliance.
Nature startup publishes peer-reviewed metric on forest biodiversity
An Estonia-based nature startup has published a forest-focused biodiversity metric that it says will help companies assess their impact on biodiversity and finance nature protection.
Biodiversity Pulse: Thursday November 9, 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).
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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
DAC distracts – A report from the Center for International Environmental Law (CIEL) argues that there are problematic ties between promoters of Direct Air Capture (DAC) in the fossil fuel industry and the COP28 hosts, suggesting the likely focus on the technology at the upcoming UN summit has the potential to do more harm than good as it perpetuates the lifespan of fossil fuel infrastructure. CIEL points out that the Abu Dhabi National Oil Company (ADNOC) and US oil firm Oxy recently signed a deal to partner on DAC projects. As per the report, Oxy brought more lobbyists than any other fossil fuel company to COP27, all included in the UAE’s official delegation, and this year an executive of the US firm was brought into the COP28 leadership team. Oxy announced this week that Blackrock would also invest $550 mln in its first DAC plant. The removal technology has attracted billions of dollars in investment over the past few years and has been touted as a key solution to meeting climate goals.
Call to action – The International Chamber of Commerce (ICC) has sent an open letter to climate ministers in advance of COP28, urging them to show political will to allow for a full and swift operationalisation of Article 6 of the Paris Agreement capable of accelerating emissions reductions at the lowest possible cost to businesses and consumers. They also called for a scaling of climate finance and for an ambitious and forward-looking Global Stocktake.
Better together – The EU and Canada are set to commit to forming a “Green Alliance” to spur the energy transition and roll out carbon markets globally, with an effort to place an explicit CO2 price on 60% of global emissions by 2030. A draft document seen by Bloomberg News says that the two sides will form a “Green Alliance” at a summit in Canada scheduled for Nov. 23-24 in Newfoundland, a week before COP28. It will see Ottawa sign up to a pledge to triple renewables capacity and double energy efficiency by decade-end, while Brussels will join the “Global Carbon Pricing Challenge”. The two sides also aim to collaborate on rolling out renewable hydrogen and setting a global standard for the fuel, as well as cutting methane emissions.
AMERICAS
First commercial US DAC – Heirloom, a US Direct Air Capture (DAC) technology company, announced the opening of the first US commercial DAC facility in Tracy, California on Thursday. The plant is fully powered by renewable energy, supplied by Ava Community Energy, and has a capture capacity of up to 1,000 tCO2 per year, the press release noted. Atmospheric CO2 is actively captured from the air and permanently sequestered in concrete through a partnership with CarbonCure Technologies. Buyers of Heirloom’s CO2 credits include Microsoft, Stripe, Shopify, and Klarna.
Nuclear non-option – Portland-headquartered nuclear company NuScale Power has canceled the country’s first expected commercial small modular reactor (SMR), a blow to the advanced nuclear industry, E&E reports. NuScale and the Utah Associated Municipal Power Systems (UAMPS), a group of local electric utilities that agreed to purchase power from the project, mutually decided to terminate what was known as the Carbon Free Power Project (CFPP) due to cost overruns and delays. NuScale is the only US developer with a design approved by the Nuclear Regulatory Commission (NRC) for a SMR, and the CFPP project was planned to come online in 2029. The project was backed by the US Department of Energy (DOE) with a $1.4 bln cost-share deal, and a DOE spokesperson referred to the cancellation as “unfortunate news”, adding that the “advanced nuclear energy technology is a critical tool to meet our ambitious net-zero goals.” Proponents of advanced nuclear technologies like SMRs argue that it provides a cheaper cost of carbon-free energy that can run nearly 24/7, but critics claim that the NuScale cancellation is evidence that SMRs aren’t going to be cheaper.
Power package passes – On Wednesday night, Democratic lawmakers in Michigan approved a series of bills aimed at enacting a 100% clean energy standard by 2040, reports the Center Square, overcoming strong Republican opposition and sending a package to Governor Gretchen Wilmer’s (D) office for signing. Senate Bills (SBs) 271, 273, 277, 502, and 519 were approved, while the package pairs with House Bills (HBs) 5120, 5121, 5122 and 5123. Specifically, SB71 seeks to require an electric provider to achieve a clean energy portfolio of 80% in 2035 through 2039 and 100% in 2040, while SB273 aims to boost energy waste reduction and SB277 aims to allow farmers to lease land for solar operations. Furthermore, SB502 aims to require the Michigan Public Service Commission (MPSC) in its Integrated Resource Planning process to add affordability and overall cost-effectiveness to its consideration, as well as require utilities to meet clean energy standards, and SB519 aims to create The Community and Worker Economic Transition Office, which would help people who lose their jobs in the auto, construction, and energy sectors during the renewable energy transition. The HBs aim to give the MPSC power to override local opposition to wind or solar energy facilities and energy storage facilities with a capacity of 100 MWs or more.
Mobilize the middle – West Virginia Senator Joe Manchin (D) announced that he will not seek reelection, E&E news reported Thursday. Manchin joined the Senate in 2010 after winning a special election to replace Senator Robert Byrd, who died that year. West Virginia politics have drifted to the right since then, and Manchin’s centrist views have not been enough for the voters. Manchin has also come in clash with members of his own party, which peaked following his opposition to the Build Back Better Act. However, he sided with the rest of his caucus in casting the swing vote in favor of the Inflation Reduction Act (IRA), although polls suggested showed his approval rating taking a dive after the IRA passed. Instead of running for relection, Manchin said on X that he will be “traveling the country and speaking out to see if there is an interest in creating a movement to mobilize the middle and bring Americans together.”
If you can’t beat ’em – Brazilian asset manager Fama Re.capital is launching a fund to buy shares in major carbon-emitting companies with the goal of influencing them to adopt stronger climate goals. According to a partner at Fama, the fund intends to pursue a “friendly and persuasive” approach with the firms, noting that many publicly traded companies in Brazil are controlled by families or economic groups. The fund will deploy multidisciplinary teams of activists, financiers, lawyers, and climate scientists to demonstrate to management that climate action can improve profits and share price. Fama’s performance fee will moreover be tied to portfolio companies’ reduction in emissions: if emissions do not fall sufficiently, the performance fee paid to the manager will be “severely reduced.”
Brazil booking – Brazil’s emissions trading system (ETS) legislation will get voted on during the last week of November, Congress in Focus reported Thursday. The vote that week is the last possible window for the legislation to pass before COP28, as President Luiz Inacio Lula da Silva’s administration had promised. The legislation only needs to pass the lower house of Congress, the Chamber of Deputies, before going to Lula’s desk to be signed into law. The Chamber will also vote on promoting a market for ethanol and green hydrogen that week.
Hawai’i forests – The US Department of Agriculture, Natural Resources Conservation Service will provide $5 mln for forest enhancement in Hawai’i, supporting invasive weed control and restoration of native plants on non-industrial, privately-owned forest lands. The funding was awarded to the state’s Department of Land and Natural Resources, Division of Forestry and Wildlife and supplemented with additional funds provided by the state legislature. Hawai’i is home to more than 400 endangered species, or roughly one-third of the nation’s federally listed endangered species.
EMEA
Bleak outlook – Leading German economists have urged for more innovation and investments to put the country that is still grappling with the fallout of the energy crisis and inflation back on a growth track, Clean Energy Wire reports. The German Council of Economic Experts forecasts Germany’s GDP to decline by 0.4% in 2023 before growing again by 0.7% in 2024. At the same time, council member Monika Grimm said heavy subsidies announced Thursday to lower the electricity price for energy-intensive companies are inadequate, as these would only slow the transformation of non-competitive industries.
Euro 7 – The European Parliament adopted today its negotiating position on new rules to reduce road transport emissions for passenger cars, vans, buses and trucks (Euro 7) with 329 votes in favour, 230 against, and 41 abstentions. Members of European Parliament (MEPs) are now ready to start talks with EU governments, as they agreed to the emissions levels proposed by the Commission (tackling non-exhaust emissions such as microplastics from tyres and particles from brakes, and including requirements on battery durability). The Parliament also proposed an additional breakdown of emissions into three categories for light commercial vehicles based on their weight, stricter limits on exhaust emissions, and to align with international UN standards. However, according to the Greens’ shadow rapporteur, Bas Eickhout, “Conservatives and liberals have watered down the proposed new standards: they are playing with the health of millions of Europeans and getting away with it too”.
Waste not want not – The UK should make better use of its scrap steel, while also transitioning to less-polluting forms of steelmaking in the form of electric arc furnaces, as doing so would allow the country to make valuable low-carbon steel desired by the automotive industry and cut the carbon emissions associated with the steel industry by 70-80%, says the FT. Emissions from blast furnaces account for most of the 14% of UK industrial emissions related to steel, so moving fast is vital, especially as increasing interest in low-carbon steel from buyers prepared to pay a premium also presents a commercial opportunity. The UK only has “one half of an almost-strategy” in distributing taxpayer subsidies to replace coal-fired blast furnaces with electric arc furnaces owned by Tata Steel and British Steel. With thousands of job losses in the process, the UK should realise the opportunity presented by improved recycling of its scrap metal and domestic production of pure iron, which in turn would create jobs, the FT writes.
ASIA PACIFIC
No can do – Singapore emitters looking to source carbon credits to use towards the permitted 5% of the nation’s carbon tax from next year will not be allowed to use units generated from projects on domestic soil, the government said on Thursday, as reported by the Business Times. The city state has signed Article 6 MoUs with more than a dozen other countries and has agreements with leading voluntary standards, though Verra only has six registered projects located in Singapore.
Frack off – Central Australian NGO Frack Free Alliance has launched legal action against former Northern Territory Environment Minister Lauren Moss’s approval of oil and gas company Tamboran Resources from drilling 12 exploration wells in the Beetaloo Basin, NT News reports. The challenge, heard in court this week, claimed that the minister’s decision failed to properly consider how the exploration project could enable future gas projects across the Beetaloo and their climate impacts. The alliance said the minister’s decision to only assess the environmental impacts of the 12 wells, rather than potential future developments based on the initial well’s results, was flawed. Analysis by Climate Analytics released last week found the emissions from the Beetaloo and Middle Arm LNG developments had been vastly underestimated.
Trickle down carbon – Japanese carbon intermediary Themix Green and SBI Sumishin Net Bank, which last month forged a J-Credit partnership, on Thursday announced they had signed a deal with North Pacific Bank and Hokkaido Kyosou Partners to supply their clients in the Hokkaido region with carbon credits that they can use towards their decarbonisation and forestry management targets.
End-user stage – In the same vein, cloud service provider and carbon credit seller Asuene, operated by Osaka prefecture and Boston Consulting Group, is developing a platform that will help Japanese companies visualise their carbon footprint. The platform will be demonstrated at the Japan International Expo in Osaka and Kansai in 2025.
Green diversification – Energy company NLC India, a state-owned company under the Ministry of Coal, plans to add 6,000 MW of renewable energy capacity by 2030. Citing a huge demand for methanol, mainly for blending with petrol and diesel, the company expects to commission a lignite-to-methanol project by 2026-27, having a capacity of 400,000 tonnes per year. The company is also targeting solar and wind energy projects, reports The Economic Times.
Co-fired up – The Queensland government announced Thursday its state-owned utility CS Energy was in the process of receiving hydrogen-ready peaking power generation units, a move it said would decrease the state’s reliance on fossil gas. CS Energy signed an agreement with General Electric Verona which will supply key equipment for the 400 MW Brigalow Peaking Power Plant in the Western Downs. The plant will initially be capable of operating on 35% hydrogen ‘with a pathway’ to 100% hydrogen over time, according to the government. The power station is slated to come online by 2026.
SCIENCE & TECH
Mixed bag – The global CCS project pipeline has increased by 102% year-on-year, according to a report by the Global CCS Institute. The pipeline now amounts to 392 CCS projects, but most are at the planning stage. However, just 11 new facilities have commenced operations and 15 new projects started construction since the last report was published one year ago.
AND FINALLY…
Start them young – A high school in Santa Fe, Argentina, is the first school in Argentina set to generate carbon credits based on the green activities it carries out, such as a vegetable-growing garden and plastic recycling initiatives. The school has generated a total of 112 credits, each with a value of A$44-45 ($0.13), which can be acquired by organisations or companies that wish to offset the environmental impact of their economic activities, with potential to raise up to A$5,000 ($14.29) for the institution from the initiative. The Ministry of Environment and Climate Change of the provincial government was responsible for auditing the carbon footprint and certifying the results. The initiative plays an important role in teaching students about the value of environmental impact and gets them involved in thinking up ways to reduce the school’s carbon footprint. Measures to generate credits at the school have included tree planting, walking or cycling to school, water conservation, and uniform reuse. The money raised through the credits will be put towards LED lighting, energy-efficient faucets, and tree planting. (El Litoral)
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