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

ANALYSIS: Canadian carbon pricing politics threaten future of federal climate policy

Prime Minister Justin Trudeau’s decision to temporarily exempt home heating oil from carbon pricing has only amplified existing dissent with the Liberal government’s approach to reducing greenhouse gas emissions, and introduces uncertainty to the future of Canadian climate policy, experts say.

VOLUNTARY

Gold Standard opens investigation into forced labour allegations at Chinese biomass project

Certifier Gold Standard on Tuesday said it had opened an investigation into the Bachu Biomass Power Generation Project in China in the wake of media reports that suggested the initiative may be at risk of being implicated in potential forced labour.

Over 1,000 new firms enter voluntary carbon market in 2023 -analysts

There were 1,200 more buyers in the voluntary carbon market than last year, according to data from an analytics provider, as analysts calculate that if all active firms in the market were to offset just 1% of emissions, carbon credit demand would rise fourfold.

Bill Gates-backed startup claims can remove carbon for 1,000 years at fraction of current cost

A climate tech startup backed by computing legend Bill Gates claims it can permanently remove billions of tonnes of CO2 from the atmosphere for more than a millennium at a cost under $100 per tonne.

INTERNATIONAL

World taking “baby steps” to reduce emissions when bold strides needed, UN report says

Current national climate action plans are still insufficient to limit global temperature increases to 1.5C, a UN report released Tuesday said, adding that the upcoming climate talks in Dubai must turn things around.

Climate action crawls amid insufficient carbon pricing, pressure on COP28 -report

The world is lagging behind on almost every indicator of efforts to tackle climate change, including carbon pricing systems, according to a multi-researcher report that piles up concerns for the upcoming COP28 UN negotiations.

EMEA

PREVIEW: EU Innovation Fund ratchets up funding, inclusivity in upcoming financing calls

The upcoming calls for the EU ETS-financed Innovation Fund will represent a major step-up in scale under new rules that also promise a greater spread of awards for pioneering carbon-cutting projects across the 27-nation bloc.

EU member state negotiators agree on CCS, paving the way for EU inter-institutional talks

Negotiators on behalf of the 27 EU member states agreed on carbon capture targets and obligations on Monday as part of the bloc’s legislative proposal to accelerate the EU’s clean technologies, according to a source close to the matter.

EU net zero bill’s timeline for CCS ‘aggressive but realistic’ with the right tools, say experts

The proposed EU target to scale up annual operational CO2 injection capacity to 50 million tonnes by 2030 is “aggressive” but “possible with better policy and regulatory support”, an event heard this week.

Nature bill deal may signal end of challenge to the EU’s green agenda, say MEPs

The worst of this year’s acrimony among EU lawmakers over green issues may now have passed after a deal was found on the bloc’s nature bill, MEPs suggested at an event in Brussels on Tuesday as a leading global climate policy expert eyed the importance of next year’s elections for determining the bloc’s level of climate ambition.

UK’s green industries looking to autumn finance statement for response to US and EU transition plans

UK-based green industries, from electric car chargers to solar panels, are looking to the finance minister’s autumn statement next week for a response to transition strategies elsewhere, particularly the US Inflation Reduction Act (IRA), and say that more potential investment will be lost without a strong government commitment.

Expectations of EU economic stagnation in 2024 lead bank analysts to cut EUA price forecast

EUA prices are likely to stagnate in 2024 as the Eurozone economy treads water and the build-out of renewable energy generation continues to forge ahead, according to bank analysts, who have adjusted downward their price forecast for the end of 2024.

Euro Markets: Market makes late gains as participants turn focus to Wednesday’s position data

EUA prices came to life on Tuesday afternoon after a quiet morning as traders anticipated the publication of Commitment of Traders data on Wednesday, while spread trading continued to increase as participants began to shift positions into the 2024 contract ahead of the expiry of the current front-December benchmark.

Hungary’s only fertiliser plant closes on impact of domestic EUA free allocation levies –media

Hungarian fertiliser producer Nitrogenmuvek has closed its plant at Petfurdo, citing losses due to the country’s recently-introduced levies on free carbon allowance allocations, according to media reports.

AMERICAS

PREVIEW: ARB’s imminent cap-and-trade public workshop information looms over WCI Q4 auction

With a slidedeck for the California regulator’s cap-and-trade programme public workshop set to release half an hour after the upcoming fourth quarter carbon allowance sale, WCI market participants deliberated on whether the ARB’s release would affect bids at Wednesday’s auction.

Washington shares potential offset protocol updates lahead of cap-and-invest rulemaking

The Washington Department of Ecology (ECY) on Tuesday presented its considerations to expand the scope of offset projects under the state’s cap-and-invest programme as rulemaking approaches.

California’s new climate disclosure laws set foundation for advanced emissions reductions in private sector -experts

A suite of legislation passed in California mandating disclosure of Scope 1-3 emissions and climate-related financial risk for large companies, as well as standardised requirements for voluntary carbon market participants, sets the stage for high-quality climate action from the private sector, a panel of experts discussed Tuesday.

Nation under threat: Major new US report warns of accelerating climate change impacts

The US is experiencing a rapid escalation in climate change impacts, with the threat of worsening consequences that will affect human health, key infrastructure, and the economy while sparing no region, according to a comprehensive report published Tuesday.

WCI, Washington allowance sale floor price for 2024 set as October inflation remains flat

The WCI-linked cap-and-trade and Washington cap-and-invest 2024 auction floor prices were set unofficially as October inflation held unchanged month-over-month for the first time all year, according to federal data published Tuesday.

Brazilian state accredits 14 more entities as REDD+ project developers

Accredited REDD+ developers in an Amazonian Brazilian state have more than doubled after the jurisdiction’s Secretariat for the Environment (SEMA) confirmed that an additional 14 entities were awarded the title of executing agents.

ASIA PACIFIC

Indonesia set to fall significantly short of power sector emissions target, think-tank says

Indonesia’s 2030 power sector emissions are likely to be far higher than the goal it set itself under its recent Comprehensive Investment and Policy Plan (CIPP), a think-tank said Tuesday.

INTERVIEW: Safeguard Mechanism facilities failing to grasp compliance obligations, advisory says

Polluting facilities covered by Australia’s Safeguard Mechanism are yet to comprehend their new compliance obligations and have little to no understanding of how they will acquire Australian Carbon Credit Units (ACCUs) to meet them, a market consultant has said.

South Korean ministry to promote credit-generating biochar project through public-private partnership

A South Korean ministry has teamed up with three domestic companies to reduce greenhouse gases in the livestock sector, with plans to secure carbon credits generated from biochar production, it announced Tuesday.

Indonesian Indigenous owners reject Papuan carbon project

Traditional custodians of lands in West Papua have refused a carbon project in their forests, which they use for medicine and other purposes and suggest they were not adequately consulted about the project.

AVIATION

ICAO body recommends immediate or conditional CORSIA eligibility for seven carbon offset standards

ICAO’s Technical Advisory body (TAB) has recommended that two carbon standards be immediately approved to supply credits to the global aviation sector’s carbon offset scheme for the 2021-23 pilot phase, while five others achieved conditional recommendations for 2024-26.

Airline partners with Canadian project developer to offset emissions from flight operations

A charter airline service provider announced on Tuesday a partnership with Canadian-headquartered carbon project developer to offset GHG output from aviation fuel burn and customer air travels.

BIODIVERSITY (FREE TO READ)

UK-France biodiversity credit panel to launch consultation next week

The UK-French led international initiative on biodiversity credits established earlier this year will launch a public consultation process on the framework next week, according to one of the co-chairs.

South Africa signs first biodiversity tax break agreements

South Africa’s environment ministry has entered into biodiversity management agreements (BMAs) with three landowners in Limpopo province, offering tax incentives in exchange for the protection of privately-owned lions and rhinos.

Biodiversity Pulse: Tuesday November 14, 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

• Biodiverse Landscapes Fund Lower Mekong Landscape Team Lead, Asia-Pacific Programme, Fauna & Flora – Phnom Penh
• Grants & Operations Manager, Biodiverse Landscapes Fund Lower Mekong Landscape, Asia-Pacific Programme, Fauna & Flora – Phnom Penh
• Senior Program Officer, Auditing and Accreditation, Verra – Remote (Worldwide)
• 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

Patience is power – Carbon market trading volumes are unlikely to pick up before 2025, say global commodity traders Vitol and Trafigura, due to a lack of consistent global standards for trading and a funding crunch, Reuters reports. It might still take years until countries can offset their emissions in a global carbon market as called for under Article 6 of the Paris Agreement, with a key issue being the extent to which countries’ digital ledgers of carbon trades are left exposed to outside scrutiny. A Trafigura executive said he expected volumes to pick up in 2025-26, while a trader at Vitol said he expected it to increase in 2026-27. The market needs scale and capital, but to get people comfortable requires standardisation, said the Vitol trader.

EMEA

Wiley circumventions – Russia is managing to almost completely get around the US-led price cap of $60 per barrel that the G7 and its allies have tried to impose on its oil sales, according to western officials and Russian export data, the FT reports. Countries are therefore exploring ways to reinforce one of the key economic sanctions placed on Moscow as it continues with its full-scale invasion of Ukraine. EU officials have been holding talks around options for strengthening enforcement or clamping down on Russia’s access to the used oil tanker market, for example. Russian statistics on oil sales in October show that the average price received was above $80 a barrel — well above the $60 limit. Russia has proven adept at avoiding the limit by building up a fleet of ageing oil tankers to circumvent western markets, for example, and by potentially providing false declarations to western insurance providers of vessels that the crude is priced below the cap. The price Russia is getting for its oil is still below Brent, the crude benchmark which averaged $89 a barrel in October.

Utility results – Large German energy companies EnBW and RWE saw a financially successful first nine months of 2023, Clean Energy Wire reports. Energy company RWE doubled its profits compared to the same period in the previous year to €3.4 bln. This comes despite RWE reporting a 24% drop in EU ETS covered fossil power burn due in part to reduced industrial demand. The company had also increased its power generation capacity by 6 GW since the beginning of the year, resulting in a significantly higher production of renewable power. EnBW meanwhile, made a profit of €4.9 bln between January and September, a much higher amount than expected, and aims to use the profits to invest in an accelerated energy transition. Investments are planned renewable energy infrastructure, grid expansion, and charging infrastructure for electric mobility, said the company.

CCS stake – European oil and gas company Wintershall has acquired a 10% stake in the licence of the UK’s Poseidon carbon capture and storage (CCS) project from Carbon Catalyst, which won the license along with project operator Perenco as part of the UK’s first CO2 storage licensing round. Poseidon is expected to connect a number of CO2 emitters across east and southeast England, resulting in permanent geological storage of about 1 bln tonnes of CO2. The project is scheduled to begin operating in 2029. The captured CO2 will be taken from the Perenco-operated Bacton Gas Terminal to the offshore Poseidon storage site, about 65km off the coast from Bacton in the UK Southern North Sea. (Gas World)

Handout rules – The UK ETS Authority will consult on changes to free allocation policy later this year as part of its review, the government confirmed in a Tuesday release. The UK ETS Authority set out that final decisions on future changes to free allocation policy would be published in a response to the free allocation review consultation by the end of 2024. In order to provide certainty to operators about what free allocation rules will be during the second allocation period from 2026, the government is proposing to move these application windows to April 1, 2025 – June 30, 2025. This will enable the UK ETS Authority to put forward final proposals on future free allocation rules, allowing operators to determine eligibility, what free allocations they are applying for, which data to submit, and to decide whether or not they should submit an application under the Hospital and Small Emitter (HSE) status or Ultra-Small Emitter (USE) schemes, it said. “We do not anticipate that this will result in any delay to 2026 free allocation distribution and the UK ETS Authority will endeavour to distribute free allocations ahead of the 28 February 2026 deadline,” the release stated. The UK ETS Authority will also update the timings for calculation of free allocations and publication of the allocation table to ensure this occurs on or before the Feb. 28, 2026 free allocation distribution.

ASIA PACIFIC

Root cause – Pacific advocacy group Tuvalu Islands Climate Action Network (TuCAN) has described Australia’s decision to allow Tuvalu residents to resettle in Australia in the face worsening climate change impacts as ‘commendable’, but said it failed to address the root cause of the low lying Pacific nation’s existential threat: fossil fuels. In a statement on the group’s Facebook page TuCan said PM Anthony Albanese’s reluctance to prioritise shifting away from fossil fuels highlights ‘a significant deficiency in global climate leadership’. It called on Australia to recognise the urgency of the climate crisis and take assertive measures to diminish its dependence on fossil fuels. It added that while offering residence to Tuvaluans was compassionate, it did not halt the inexorable rise in sea levels.

Little support – Chinese development banks provided no green energy sector loans for the second year in a row in 2022, despite the country’s climate commitments, Reuters reports, citing research by Boston University’s Global Development Policy Center. While China’s support for overseas coal projects was already on the decline, the pledge to step up support for green and low-carbon energy has yet to solidify, according to the research. From 2000 to 2022, the China Development Bank (CDB) and the Export-Import Bank of China (CHEXIM) provided a total of 331 loans worth $225 bln for energy projects, with the largest share going to exploration and extraction activities, and nearly three-quarters of the total lending went to coal, oil and gas, the research found.

Tighter control – China has tightened its grip on copper, an essential metal for the world’s energy transition, as the booming domestic new-energy sectors fuel metals demand, according to Bloomberg. The country is quickly expanding its copper smelting capacity, which could increase by 45% by 2027 and trigger a race to secure copper concentrate to feed the smelters. Copper demand in the country is expected to grow by 5% this year, according to researcher CRU Group, while Goldman Sachs named copper as one of its top commodities picks for next year on a “robust green demand environment,” the report said.

Appointment – The director of the Indigenous Carbon Industry Network, Suzanne Thompson, has been appointed to Australia’s Emissions Reduction Assurance Committee (ERAC), the government announced. Thompson is a traditional custodian of the Iningai lands, and her appointment fulfils the recommendation of the Chubb review to include a First Nations member on the committee, the government said. The government said the appointment would help support market confidence in ACCUs and ensure the scheme continues to deliver genuine abatement. The full-time chair of ERAC, Professor Karen Hussey, was appointed in September. Both will serve on the committee when it transitions into the Carbon Abatement Integrity Committee.

Rules ready – South Korea is set to introduce a clean hydrogen certification system as the cabinet has approved the amendments to the Hydrogen Act, the Ministry of Trade, Industry and Energy (MOTIE) announced Tuesday. The revision – including ground rules for standards and procedures as well as the designation of certification bodies –  is expected to promote large-scale investment from companies by laying the foundation for clean hydrogen certification, the ministry said.

AMERICAS

Unsafe wolf – Staffer Brett Seagle at the Illinois Commerce Commission has recommended against allowing the 260-mile (418.4 km) CO2 pipeline by infrastructure firm Wolf Carbon Solutions to be built that is proposed from two ethanol plants in Iowa to an underground sequestration site in Decatur, Illinois, The Pantagraph reported Tuesday. Citing multiple concerns, including safety and uncertainty about who would supply the carbon dioxide and where the carbon dioxide would be stored, the staffer made a non-binding recommendation. Besides, multinational agricultural firm ADM had not entered into a final, binding agreement to supply the project with carbon dioxide captured during ethanol production, despite Wolf’s well-publicized plans which alluded to otherwise, Seagle pointed out. The agency’s five commissioners will make the final decision regarding the pipeline in the next four months, the report noted.

Base pay – Toronto-headquartered developer Base Carbon announced it was creating a nature-based carbon removal project in the northern Indian state of Uttar Pradesh, where it has spent $3.6 mln on planting 6.5 mln trees in a Q3 financial statement from the company. Its Vietnam project is now 92% complete and Base Carbon has spent $200,000 in Q3 in contractual payments for the operations. The company had a $1.7 mln loss in Q3 and bought back nearly 4.5 mln of its own shares.

Clean gas advocates – A group of companies and organisations have come together with the Canadian Biogas Association to form the Clean Gas Coalition, with the goal of increasing regulatory support for clean gas, including biogas, renewable natural gas (RNG), and low carbon hydrogen. The coalition has developed a policy proposal for a federal Clean Gas Standard, which would require natural gas distributors to decrease the carbon intensity of the gaseous fuel stream by introducing clean gas into the domestic market. The group aims to push for a requirement to reduce GHG emissions from the use of gaseous fuels, as well as provide support for the introduction of clean gas into the market.

VOLUNTARY

Punchy pledge – TotalEnergies has pledged to reduce its global GHG emissions from oil and gas facilities by 40% in 2030, as announced at the opening session of the 41st NAPE annual International conference and exhibition in Lagos. The company aims to achieve an energy mix of 50% gas, 30% petroleum products, 15% electricity, and 5% from biomass and hydrogen by the end of the decade, and by the end of 2023, it aims to eliminate routine flaring at all installations in Nigeria. TotalEnergies also plans to increase solar energy resources at its facilities and host communities in Nigeria. (MarketScreener)

INVESTMENT

AND FINALLY…

Doctor’s orders – A number of climate professors from Australian universities have pre-signed climate doctor’s certificates which can be personalised for students who attend the country’s upcoming National Schools Strike 4 Climate across the country. The sick note cites symptoms of increased anxiety, elevated stress, and feelings of despair, as a result of inaction from the federal government alongside experiences of climate impacts. While not signed by medical professionals, the certificates were an innovative way to raise awareness about the implications that climate change will cause for the coming generation, said David Karoly, professor at the University of Melbourne and one of the signatories of the certificates. Spokespersons from regional departments of education say they expect students to attend school on the day of the strike and the certificates would not be accepted. (Sydney Morning Herald)

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