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

South Pole board replaces boss Heuberger in wake of Kariba REDD project suspension

South Pole chief executive Renat Heuberger is stepping down from his position with immediate effect after losing the support of the board of the company in the wake of last month’s suspension by certifier Verra of the Kariba REDD project in Zimbabwe, the company said on Friday.

WEEKEND READ

ANALYSIS: All roads lead to Article 6 to connect multitude of emerging carbon pricing schemes

With the voluntary carbon market at a “crossroads”, a plethora of countries developing new carbon pricing systems, and mature compliance mechanisms such as the EU ETS expected to require removals integration further down the line, the need to connect these different emerging and established schemes is more apparent than ever, according to observers at a high-level industry event this week, with most routes for doing so leading towards Article 6 of the UN Paris Agreement.

AMERICAS

Oil major-owned project developer denies deceiving Indigenous people into signing carbon credit contracts

An offset project developer part-owned by a major oil company has denied allegations by a Brazilian investigative news outlet that Indigenous people in the Amazon were deceived into signing carbon credit contracts.

Canadian asset manager’s forest carbon fund secures initial commitments of US$224.5 mln

A Toronto-headquartered global wealth and asset manager announced on Friday the initial close of its forest fund investing in sustainably managed forests where carbon sequestration is prioritised over timber production.

New Hampshire reviewing ARB-approved forest carbon project for possible easement violation

The Attorney General’s office in New Hampshire is scrutinising the new business model of Bluesource Sustainable Forest Company (BSFC), which owns a 59,000-hectare tract at the state’s tip, to assess its compliance with a 20-year-old easement originally intended for logging and recreation.

Oregon Clean Fuels Program credit generation hits record in Q2 2023

The highest number of quarterly credits in the history of the programme saw Oregon’s Clean Fuels Program (OCFP) generate the second highest quarterly net credit surplus during the second quarter of the year, even as gasoline deficits reached their peak, according to state data published Thursday.

FSC-certified forests in North America prove more carbon-efficient, studies reveal

A series of studies released by the US arm of the Forest Stewardship Council (FSC-US) show that forests certified by the international non-profit in North America hold more carbon compared to commonly managed forests.

EMEA

Euro Markets: EUAs post weekly gain for first time since mid-October as traders eye timing of rally

EUA prices posted their first weekly gain in a month, shaking off early weakness to chart a robust afternoon gain amid some short covering, as speculation continued to grow that the market may be approaching a turning point after a month-long decline, while energy markets fell back for a fourth week in a row.

Latest EU compromise for net zero industry bill keeps CCS obligation on oil and gas sector

Oil and gas companies will be obliged to meet their share of an EU target of 50 million tonnes of annual operational CO2 injection capacity by 2030, according to a new compromise text that the Spanish presidency has circulated to EU member states ahead of a working group meeting on Monday.

Academics urge caution on UK’s setting of carbon removals goals, given uncertainties

The UK government’s climate policies rely on carbon removals but don’t sufficiently take into account the uncertainties involved in developing and scaling up the technologies, and this is distorting decision making, according to new academic research.

Norway government proposes budget allowing for major EU carbon unit spend

The Norwegian government on Friday set out a 2024 budget proposal that would carve out $270 million for it to spend on carbon units to help meet its EU climate policy obligations.

German-Brazilian startup secures €5.6 mln in funding to develop enhanced rock weathering in tropics

A German-Brazilian startup focused on enhanced rock weathering (ERW) in tropical regions has successfully raised €5.6 million in an oversubscribed funding rounds, led by prominent impact, climate, and tech investors.

ASIA PACIFIC

CN Markets: CEA price drops to 2-mth low, CCER trading activity picks up

The spot price in China’s national emissions trading scheme (ETS) extended recent losses over the past week amid sustained liquidity, while the domestic offset market saw improved trading volumes despite unclear supply outlook.

Australia Market Roundup: Australia offers Tuvalu right to resettle in Australia, analyst says ACCU short can be managed

Prime Minister Anthony Albanese has announced a pact with low-lying Pacific Island nation Tuvalu to allow residents facing worsening climate change impacts the option to resettle in Australia.

Indonesia’s carbon markets seen to need scale, standardisation, transparency to expand

A British international bank may enter carbon markets via bonds next year, but in Indonesia the scale of the market must match the bank’s large-scale appetite for investment, a conference heard this week.

VOLUNTARY

Terraformation advances inaugural accelerator cohort to next phase of pioneering forest carbon programme

Terraformation, a global forestry company led by former Reddit CEO Yishan Wong, has announced the advancement of the first cohort of its Seed to Carbon Forest Accelerator to the second phase of the programme.

BIODIVERSITY (FREE TO READ)

EU co-legislators reach provisional deal on nature restoration law

(Updates Thursday’s article with reactions on the agreement)

Clamour to address plastic pollution reaches peak ahead of global treaty negotiations

The noise around efforts to tackle plastic pollution has risen to a fever pitch, a week before the negotiations for a global treaty to address the issue are due to begin.

Cosmetics giant rolls out biodiversity action policy to limit impact on nature

A major chemicals and cosmetics corporation has released a biodiversity action policy, promising to work with consumers and business partners to conserve and restore biodiversity impacted by its activities.

US-backed nature fund latches onto private sector, green bonds

The Americas Partnership Fund for Nature will receive an initial $10 million from the US government, the White House said last week before launching the financing vehicle officially via a fact sheet Friday.

—————————————————

Premium job listings

• Biodiverse Landscapes Fund Lower Mekong Landscape Team Lead, Asia-Pacific Programme, Fauna & Flora – Phnom Penh
• 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

—————————————————

BITE-SIZED UPDATES FROM AROUND THE WORLD

Carbon Pulse has teamed up with CME Group to provide the market operator’s 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

Common ground – The US and China have reached “understandings and agreements” on climate issues, and details of the agreements between the two nations would be released soon, US climate envoy John Kerry said on Friday, according to Reuters.  One important agreement reached on climate loss and damage would allow any country to contribute to a fund to support climate-vulnerable regions, Kerry said. Much of the focus on China at the upcoming COP28 will be on its ongoing coal power expansion (360 GW of coal-fired power capacity in the project construction pipeline) and Beijing’s reluctance to commit to a clear fossil fuel phase-out target.

Tripling renewables – More than 60 countries have said they back a deal to triple renewable energy this decade and shift away from coal, Reuters reports, citing two officials. The EU, US and UAE have been rallying support for the pledge ahead of the COP28 negotiations, and will call for its inclusion in the final outcome of a gathering of world leaders on Dec. 2, the officials said. Negotiations with China and India to join the pledge are “quite advanced,” though neither has yet agreed to join, according to one of the officials. Among countries that have said they will join are Nigeria, South Africa, Vietnam, Australia, Japan, Canada, Peru, Chile, Zambia and Barbados. The draft also says increasing renewables must be accompanied by “the phase down of unabated coal power,” including ending the financing of new coal-fired power plants.

Call for help – The Article 6.4 Supervisory Body has launched two calls for input aimed at creating robust regulations to ensure further safeguards for stakeholders are in place under the UN crediting mechanism. These include a call for input on the appeals and grievances process draft procedure and on the sustainable development tool. Both calls for input are open for public consultation until Dec. 1, 2023. The body concluded the first of its last-minute scheduled additional meetings – the second and final taking place on Nov. 16-17 – as it scrambles to ready methodological guidance ahead of COP28.

EMEA

Crystal balling – Analysts at Refinitiv expect coal burn in the EU to fall 87% between 2024 and 2035, with only Germany, Poland, and Czechia using the fuel after 2030, according to a power outlook seen by Carbon Pulse. The combined coal and lignite generation in our model area is expected to decrease from 336 TWh in 2024 to 45 TWh in 2035, they wrote. As for gas, this will peak in 2030 across the bloc, rising to 502 TWh at the end of the decade from 380 TWh in 2024. By 2035, the total will have retraced from 2030 highs back to 419 TWh. As for renewables, the analysts expect the overall supply of wind and solar power to rise to 1400 TWh in 2030 and 2100 TWh in 2035, from 800 TWh in 2024, meaning a three-time higher supply than present levels. The impact on emissions of these forecast generation developments is significant. Refinitiv expects 2030 emissions to drop by 77% compared to 2005 levels to 225 MtCO2. By 2035, Refinitiv expects an 83% emission reduction in the sector to 162 Mt, with most of the fossil-fuelled generation in 2035 to come from gas. According to the modelling, 2024 power emissions from gas plants are expected to make up for 26% of EU-ETS power emissions, rising drastically to 80% in 2030, and 90% in 2035.

Phasing out – The UK government has signalled plans to water down its position on a core part of COP28 negotiations, Politico reports. Energy and climate minister Graham Stuart told MPs Wednesday that he was not fixated on whether countries agree to “phase down” or “phase out” fossil fuels, so long as the COP agreement “translates into real action.” A UN-backed report this week called on governments to work together to phase out oil, coal and gas. “The UK seems rather busy phasing down, phasing out, whatever, their own role during this year’s COP,” one diplomat from an EU country told Politico.

New coalition commits – Poland’s pro-EU opposition parties reached an agreement on coalition on Friday, in which they pledged to unblock funds from the National Reconstruction Plan and allocate revenues from the ETS to the energy transition and climate. In it they said that the “Coalition parties will work together to increase the share of renewable energy sources in electricity production” by accelerating the deployment of onshore wind power, solar power and biogas plants. They also said they would develop a “coherent nuclear power development program and precisely define how it will be financed”. The coalition did not mention any details on the potential of a coal phase-out, signalling how sensitive the issue is.

Flight of fancy – Denmark’s government has proposed imposing an average tax equivalent to $14.35 on air travel to help finance a green transition of the airline industry that will enable all domestic flights to use 100% sustainable fuels by 2030. About half of the expected yearly proceeds will help finance that SAF ambition, while the other half will be used for cash handouts to elderly people. The passenger tax will be gradually phased in from 2025 so that by 2030, the tax will be around $9 for travel inside Europe, $34 for medium-distance flights, and $56 for long-distance. (Reuters)

Going down – Energy consumption in Germany’s industry dropped 9.1% in 2022 compared to the previous year, Germany’s Statistical Office has found. Natural gas use fell by more than 17% but the fossil fuel remained the most used energy carrier among industrial companies, accounting for 28% of all use. It was followed by directly-used electricity (21%), oil (18%), and coal (15%). By far the most energy for industrial purposes (89%) was used for heating and power production, while 11% was used to produce basic materials, such as chemicals or plastics. (Clean Energy Wire)

Redistribution – France and Slovakia prepared on EU electricity market reform, saying electricity producers’ profits should be redistributed among consumers, while investments in low-carbon technologies need to be increased. Euractiv reported that the new Slovakian minister for the Economy, Denisa Sakova, joined forces with the French energy transition minister Agnes Pannier-Runacher, hoping to ensure EU electricity reform is adopted “in the coming weeks”. “Thanks to the reform we want to implement, each state will be able to redistribute the income of a part of electricity producers among consumers in case of high prices, thus avoiding situations of ‘excessive profits’ of producers,” Sakova stated. The chief negotiator, MEP Nicolas Gonzalez Casares, initially proposed a pre-planned price cap that would have had electricity pay up if electricity prices exceeded a certain threshold – money countries could then spend to alleviate high energy bills. Read the latest developments of the bill.

Halfway there – New research shows that while the early adoption of renewables in the UK has sped up its path to reach net-zero, global challenges and the harder to abate-sectors could derail further progress in the year to come, edie reports. The ‘Net-Zero Readiness’ report by consulting firm KPMG analyses 24 countries and key economic sectors’ efforts to reach net-zero. The UK has managed to cut GHG emissions in half since 1990, but it is now struggling with reducing emissions in the transport, buildings and industry sectors that collectively accounted for 60% of all GHG emissions in 2022. The UK government’s aim to annually install 600,000 heat pumps by 2028 is far off target, and prime minister Rishi Sunak extending the deadline for banning oil boilers in off-grid homes from the initial 2026 to 2035 also throws the UK off track. The report states that greater political certainty is needed for investors in the green transition to be retained and attracted to the UK.

A place in the sun – The EU Commission approved a €1.7 bln Italian state aid scheme under the Recovery and Resilience Facility to support agrivoltaic installations. The scheme supports the construction and operation in Italy of new agri voltaic plants for a total capacity of 1.04 GW and an electricity production of at least 1300 GWh/year. The aid will be granted to agricultural producers, cumulatively, in the form of: investment grants, with a total budget of €1.1 bln, covering up to 40% of the eligible investment costs; and incentive tariffs, with an estimated budget of €560 mln, to be paid during the operational phase of the projects, for a 20-year period.

Get ready – Jesper Sorensen, Global Head of Alternative Fuels & Carbon Markets at KPI OceanConnect, has highlighted the significant challenges that shipping companies will face as they navigate the complexities of the EU ETS, set to cover maritime emissions from Jan. 2024. This system, new to the shipping industry, will necessitate significant adjustments in fuel choices, emissions management, and overall compliance strategies, Sorensen writes in a piece for Bunkerspot. This extension, he said, will influence decisions regarding fuel selection, bunkering behaviour, and associated costs. Success within this framework will depend on the industry’s ability to adeptly navigate and conform to these new requirements. Preparation for the EU ETS involves several critical steps, including the establishment of operator holding accounts and trading accounts with the Union Registry. Operators are also encouraged to develop strategies that consider their risk appetite and fuel plans. These strategies could involve early purchase of EUAs, investment in biofuels to lower carbon liability, or other measures to reduce emissions.

ASIA PACIFIC

Payments guaranteed – Chinese coal-fired power producers will be guaranteed payments based on their installed capacity regardless of how much energy they actually produce, as the country seeks to ensure a stable electricity supply despite growing concerns over its continued coal expansion, according to Reuters, which cited a notice published by the National Development and Reform Commission (NDRC). Coal plants in most of China’s regions will be able to recover around 30% of their capital costs between 2024 and 2025, with capacity payments based on fixed costs of 330 yuan ($45.25) per kW per year for coal plants.

Hail, hail – BluSmart, an Indian electric vehicle taxi service operator has received carbon credit accreditation from Verra, carbon standards body, and has become the first mobility company in India to have achieved this, reported The Times of India. The company is set to receive the credits from the CO2 emission reductions generated by its EV fleet from February 2020 to December 2021. BluSmart, has so far completed over 300 mln all-electric kms since the company began its operations. At present, BluSmart operates in Delhi NCR and Bengaluru with a fleet of over 5000 EVs.

Offset go! – Singapore’s Changi airport has launched its own carbon-offset programme known as Changi Carbon Offsets, through which the passengers will be able to offset the carbon that they emit through air travel, regardless of the airline that they fly with. The passengers will be able to calculate the carbon emissions for their forthcoming flight on the airport’s website or app on the basis of their departure and arrival destination and the class of travel. Thereafter, they’ll be given an option to offset those emissions. The airport authority said that the funds generated through this programme will go into supporting carbon-offset projects in Indonesia, China and India, Business Times reported. Back in 2021, Singapore Airlines had also launched a voluntary offset program.

AMERICAS

FERC flexibility – At a Federal Energy Regulatory Commission (FERC) grid reliability technical conference Thursday, US Environmental Protection Agency (EPA) principal deputy assistant administrator for the Office of Air and Radiation Joseph Goffman said the agency may need to provide more flexibility to generators, states, and other entities on proposed rules for cutting GHG emissions from power plants, reports Utility Dive. The EPA is meeting with FERC, the US Department of Energy (DOE), the North American Electric Reliability Corp., regional transmission organizations, and other stakeholders to finalise the rule, which proposes a 2030 start to compliance obligations. In August, FERC agreed to Senator Joe Manchin’s (D-WV) request for a review of the rule, and opponents of the proposal argue that it threatens grid reliability and violates the Supreme Court’s ruling last year that limits the power of the EPA to regulate power plant emissions. 

At odds – Virginia state’s largest utility provider, Dominion, has proposed to build a natural gas facility in Chesterfield despite a 2020 law that requires the company to generate all of its power using only renewable energy by 2045. In its permit filing for the project, Dominion referred to wind and solar as “operationally unreliable” and said that fossil-fuel-powered plants are necessary to “respond rapidly to changes in generation from both the renewable sources and normal changes in power demand”. The company refers to the plant as a “peaker” plant, outlined to only operate during peak electrical demand. (Inside Climate News)

Scope 3 Standard – Verra has launched a Scope 3 Standard Program Development Group, which will meet regularly throughout the development of its Scope 3 Standard Program, an announcement on the company’s site from Wednesday said. The group’s focus is to establish the program’s relevance to and utility for the needs of corporate inventory accounting. The standard will see a forthcoming call for Scope 3 Program pilot projects and a Scope 3 Program Development Consultative Group, with biannual update webinars beginning in 2024.

Port-pour-it – The Port of Los Angeles and Port of Long Beach will provide $60 million in Clean Truck Fund (CTF) Rate funding through the California Hybrid and Zero Emission Truck and Bus Voucher Incentive Project (HVIP) for vouchers toward the purchase of eligible zero emission trucks servicing the San Pedro Bay ports complex. Each port is providing $30 million through the CTF Rate, which collects $10 per 20-foot equivalent unit from cargo owners on loaded containers entering and exiting the port complex. According to ports, the CTF Rate is a “key component” of the San Pedro Bay Ports Clean Air Action Plan goal of 100% zero emission drayage trucks by 2035. The funds will be available to applicants starting Nov. 14.

Dear Trudeau – Five conservative premiers are asking Canadian Prime Minister Justin Trudeau for a meeting to discuss their demand that the federal government remove the carbon tax from all forms of home heating, CBC reports. Following the government’s decision to temporarily halt carbon levies for home heating oil, the officials put forward their case reasoning that a significant number of households use different forms of home heating. Their joint letter to Trudeau read that exempting Atlantic Canadians from such taxes has caused divisions across the country. “All Canadians are equally valued and should be equally respected,” they wrote. “A Canadian is a Canadian.”

AND FINALLY…

Sanction shifting – The deputy chairman of Lukoil Bulgaria’s supervisory board, Alexander Velichkov, said some types of fuel made from Russian oil can be exported to the EU under current sanctions against Moscow. In fact, these prohibit the export of products under numbers 2709 and 2010, but low-octane gasoline has a customs code of 27079999. At the same time, a report by Global Witness, the Center for Research on Energy and Clean Air, as well as the Bulgarian think-tank Center for the Study of Democracy (CSD) showed that the Bulgarian refinery exports fuel worth around €1 bln across the world, involving European ports too. Velichkov dismissed as “another fuss about Lukoil” comments that the Russian oil company’s Bulgarian subsidy had circumvented the oil embargo and added that “there was no illegal export of fuels to EU markets”. (EurActiv)

Got a tip?  How about some feedback?  Email us at news@carbon-pulse.com