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TOP STORY
Clean cooking developer first to issue Article 6-aligned credits
A developer of clean cooking projects is the first to be issued with carbon credits aligned with Paris Agreement Article 6 on the Gold Standard registry, with an African nation agreeing to correspondingly adjust for those credits on its own emissions tally in order to prevent double counting of the emissions reductions.
METHANE
EU co-legislators agree on methane emission rules for the energy sector
EU co-legislators in the early hours of Wednesday morning agreed a provisional deal on rules that will limit methane emissions from the energy sector, including a clause hard-fought from the Parliament to extend the rules to energy imports in three years.
US launches int’l working group to standardise GHG reporting in natgas sector, as investment bank extols benefits of methane mitigation
The US Department of Energy’s Office of Fossil Energy and Carbon Management (FECM) on Wednesday announced the formation of an international working group aimed at enhancing the transparency and reliability of methane and other emissions data in the natural gas supply chain, while a major investment bank extolled the financial benefits of mitigation efforts in the sector.
EMEA
German court orders €60 bln in climate funding be reversed after ruling 2021 budget act unconstitutional
Germany’s Federal Constitutional Court of has ruled that a 2021 government budget act, which redirected €60 billion initially borrowed to address the COVID-19 pandemic towards climate and energy measures, is unconstitutional and therefore void.
EU emissions fall 5% in second quarter as power and gas sector charts largest drop
GHG emissions across the EU fell over 5% year-on-year in the second quarter of 2023, with electricity and gas sectors making the biggest decline, the statistics agency Eurostat reported on Wednesday.
Euro Markets: Carbon settles at highest in 3 weeks as investment funds build new record short position
EUA prices rose to settle at their highest in three weeks on Wednesday after updated position data showed investment funds had continued to build net short positions last week, setting a new record in the process, while energy markets gave up early gains amid technical trading.
UK carbon capture policy prolongs fossil use and falls short on ambition, finds report
The UK government’s £20 billion carbon capture and storage (CCS) policy is not consistent with the country’s net zero targets, while over three-quarters of planned capacity in 2030 is set to come from projects that require long-term fossil use, according to a report from an international think-tank published on Wednesday.
INTERNATIONAL
International ‘climate club’ to launch at COP28 conference, says EU climate chief
An international climate club for governments will be officially launched at the beginning of December at the COP28 UN climate conference in Dubai, with a particular focus on industrial decarbonisation, the EU’s top climate official Kurt Vandenberge told a conference on Wednesday.
Oil supply, demand rising to hit ‘unprecedented’ level in 2024 -IEA
Oil production rose 320,000 barrels per day in October, propelling global supply to a record 101.8 million barrels of oil per day (bopd) and supply will reach historic levels this year and grow further next year, according to the International Energy Agency (IEA).
US, China agree on climate cooperation ahead of COP28
The US and China, the world’s two largest GHG emitters, have agreed to jointly tackle global warming through multiple initiatives including large-scale CCUS projects and ensure their 2035 climate targets will include all GHG emissions, they announced Wednesday.
ASIA PACIFIC
China thermal power continues to grow in October, though slower than solar and hydro
Growth in China’s thermal power output continued to grow in October with sustained expansion of coal output, though slower than the pace seen in solar and hydropower generation, government data showed Wednesday.
Nature-based solutions a tough sell for Article 6, UN conference hears
Buyers of Article 6-aligned carbon credits are shying away from nature-based units amid lingering quality concerns, officials have told the ongoing Asia Pacific Climate Week in Johor Bahru, Malaysia.
Japan’s slow carbon pricing progress misaligned with IPCC guidance, think tank says
Japan’s green transformation (GX) initiative is misaligned with UN guidance on climate policy, especially given the country’s slow regulatory progress in carbon pricing, a think tank has said.
Australia Market Roundup: NSW wind project guidelines shuts the gate on development, ACCU issuance inches up
The New South Wales state government has released draft guidelines for wind projects, deeming almost the entire state as “less suitable” for wind farms, sparking shocked reactions from the industry.
Bank offering high net worth philanthropists chance to invest in blue carbon
The carbon-focussed and environmental arm of a major investment bank is calling for collective philanthropy to invest in Southeast Asian blue carbon systems in a bid to slow and reverse the rapidly disappearing mangrove systems in the region.
Australian biochar company receives A$11 mln loan from parent company
A South Australian biochar company has received an A$11 million ($7.1 mln) loan from its parent company to fund the purchase of pyrolysis plants for its carbon removal project.
NZ Carbon Fund recovers, buys back NZUs
A New Zealand exchange-traded fund tied to the country’s emissions trading scheme has seen its value recover in line with the NZU price.
AMERICAS
California-Quebec model allowance prices rising to $180 in 2040, consider duration limits on banked allowances in upcoming workshop
California regulator ARB and Quebec’s Environment Ministry (MELCCFP) on Wednesday modelled allowance prices under various allowance budget scenarios, discussed cost-containment mechanisms, and deliberated market rule changes such as updating holding limits and auction purchase limits ahead of its Nov. 16 workshop discussing potential amendments to the cap-and-trade programme.
Second Washington carbon reserve auction sees record-high bid volume, sells out
The Allowance Price Containment Reserve (APCR) sale in Washington state’s WCI-modelled cap-and-invest programme saw strong demand and sold out of its permits at one fixed price, according to results published Wednesday.
Washington releases draft language on reporting requirements for cap-and-invest auction revenue recipients
The Washington Department of Ecology (ECY) outlined rules on Wednesday for how recipients of the state’s Climate Commitment Act (CCA) funds should report expenditures and benefits to the state regulator ahead of its upcoming rulemaking.
Argentina publishes national strategy for carbon markets, hopes to salvage NDC
Argentina hopes to achieve the goals set out in its Paris Agreement NDC and access climate finance in part through a range of carbon market mechanisms, it affirmed in a National Strategy for the Use of Carbon Markets (ENUMeC) published Tuesday.
US federal agency awards $1 mln grant towards coastal wetlands carbon measurement
An independent federal agency selected on Tuesday an adaptive infrastructure firm for $1 million in small business research funding to develop technology for the measurement of carbon stocks in coastal wetlands.
VOLUNTARY
Novel Black Sea CDR startup secures $5 mln in seed funding
A biomass carbon removal and storage company has topped $5 million in seed funding, which it says will bolster its efforts to deploy scalable carbon dioxide removal (CDR) technology in the Black Sea.
ICROA appoints members of inaugural independent advisory committee
Voluntary carbon accreditation body ICROA has appointed its first independent advisory committee to oversee fundamentals and help drive integrity under its program of continuous improvements.
Exotic tree planting creates concerns about additionality in ARR projects, report finds
Developers often favour exotic rather than native trees for afforestation, reforestation and revegetation (ARR) projects because these are better suited for harvesting, raising concerns about additionality, according to a study on Wednesday published by a carbon standard with a method that bans non-native species.
Base Carbon explains $1.7 million loss, outlines road ahead
Toronto-headquartered carbon project developer Base Carbon explained to an investor call on Wednesday why it lost $1.7 million loss in Q3, said when the company would become profitable, and detailed its new project in India.
Canadian offset financier reports net income in Q3 as cost reduction efforts advance into strategic review
A Toronto-headquartered voluntary carbon credit firm provided updates on its restructuring measures to optimise costs as it recorded net income for the third quarter of the year, according to quarterly earnings published Tuesday.
Climate tech company raises seed funds for biochar carbon removal facility in Kenya
A climate tech company has raised $1 million in seed funding to establish its first biochar production facility, located in Kenya, according to a press release on Wednesday.
California-based firm agrees “groundbreaking” CDR tech deal with advanced materials company
A California-based carbon removals firm has purchased “groundbreaking” direct air capture (DAC) technology from a Pittsburgh-headquartered advanced materials company.
Sustainability consultancy, carbon data management platform forge partnership
A major ‘pure play’ sustainability consultancy has formed a strategic partnership with a software platform specialising in carbon and sustainability data management.
AVIATION
Southwest Airlines unveils ‘Nonstop to Net Zero’ sustainability strategy to help decarbonise operations by 2050
Southwest Airlines has announced a comprehensive new sustainability strategy, titled ‘Nonstop to Net Zero’, taking another step towards its commitment to achieving carbon neutrality by 2050.
BIODIVERSITY (FREE TO READ)
French govt paper urges range of financing options for nature-based solutions
A report published by the French government, in collaboration with CDC Biodiversite, underlined that greater finance from across the spectrum of stakeholders would be needed to protect nature, while also assessing the various tools available to scale funding.
Only four countries have ocean acidification plans, report finds
Just four countries globally have regions to have published dedicated plans for tackling the threat posed by increasing seawater acidity levels, with the US taking the lead, a report has found.
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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
Tripling target – The US and UK are leading a push at COP28 for a tripling of nuclear power capacity installed globally by 2050, calling on the World Bank and other international financial institutions to include nuclear energy in their lending policies, Bloomberg News reports. The US will likely be joined by the UK, France, Sweden, Finland, and South Korea in the pledge to be signed Dec. 1 in Dubai, say the people familiar. The agreement will then be followed by a nuclear industry commitment to triple generation resources from 2020 levels. The countries recognise the key value of nuclear energy in providing clean dispatchable baseload power, with benefits for energy security, the declaration will say. Nuclear has recently gained much traction as a clean back-up for renewable energy sources, such as wind and solar, with countries increasingly seeing the value of new nuclear technologies, such as small modular reactors.
Big talk – Upcoming UN COP28 climate talks are as important as those taking place in Paris in 2015, said German foreign minister Annalena Baerbock, Clean Energy Wire reports. This is mainly due to levels of geopolitical turbulence and macroeconomic uncertainty, as well as the high stakes of limiting global warming for the future of the planet, said Baerbock during a briefing in Berlin.
Birthday bonus – Britain has doubled its investment in Pakistan to help the South Asian country tackle climate change, enhance climate resilience, and promote adaptation, Jane Marriot, the British Commissioner to Pakistan announced Tuesday, Arab News reported. The Pakistani delegation present at the event to celebrate King Charles’s 76th birthday also announced that the government of Pakistan will convert 30% of its transportation fleet to electric and will generate 60% of its energy needs from renewables by 2030.
EMEA
Windfall levy – The French government has reached a complex deal with EDF aimed at protecting consumers and businesses from soaring energy prices, which includes a windfall levy on the state-owned nuclear power producer’s revenues if energy prices spike again. The new framework will include taxing some of EDF’s revenues if energy prices exceed certain thresholds and redistributing the funds to consumers and companies, with a goal of keeping the price of nuclear power at an average of about €70 per megawatt-hour over a 15-year period, above EDF’s estimated production costs. French wholesale power prices are still well above €100/MWh currently. The new framework, set to apply from 2026, will see the state recoup half of the extra revenues earned in tax if energy prices head north of about €78/MWh, while any revenue above a threshold of €110/MWh would be taxed at 90%. EDF is France’s main power provider and producer, with a fleet of 56 reactors that also export power across Europe. (FT)
Climate protection – Investments by German companies in climate protection measures increased by 18% in real terms in 2022 to €72 bln, which occurred despite economic uncertainties as a result of the energy crisis, said KfW, a state-owned developing banking institution. The steep rise in energy prices for fossil fuels has made energy efficiency and renewable energy investments that much more attractive, with the increase largely being shouldered by large companies, said KfW. However, around 70% of companies are yet to develop any concrete plans to cut GHG emissions, which mainly affects SMEs. (Clean Energy Wire)
Reckless expansion – The state oil company of the UAE, whose CEO will preside over COP28, has huge planned expansion of oil and gas, which runs as a clear conflict of interest to the CEO’s position leading the global negotiations aimed at cutting fossil fuel use and tripling renewable energy, according to new data from the Global Oil and Gas Exit List. Planned expansions by fossil fuel producers are expected to blow the planet’s carbon budget twice over, the UN has warned, while numerous scientific studies have concluded that most existing oil, gas, and coal reserves should remain in the ground if we are to have any hope of keeping temperatures in check. However, oil and gas producers such as the Abu Dhabi National Oil Company (Adnoc) are continuing to exploit more fossil fuels than can safely be burned. (the Guardian)
Fertiliser flip-flop – Just a day after announcing that Hungary’s only fertiliser plant was shutting permanently due to the country’s recent levy on free EUA allocations and a tax on allowance transactions, Nitrogenmuvek CEO Laszlo Bige has changed his mind. Speaking to Hungarian radio yesterday, Bige said that instead of closing the plant, he would explore all possible avenues to keep the unit open, though production won’t resume this year. This summer, Hungary imposed a tax of €36/tonne on free allocations of EUAs for most large emitters and set a transaction tax of 15% on EUA trades.
Passthrough portions – Norwegian shipping line UECC has developed a standardised methodology aiming to help cargo owners determine their Scope 3 emissions liabilities under the EU ETS, which includes shipping from next year. This entails allocating costs to various stakeholders that the firm says can be used to calculate EUA liabilities based on their respective share of emissions, based on a regime already widely used by cargo owners for the purposes of ESG reporting.
Marshes vs mitigation – South London residents are expressing strong opposition to the Cory Group’s plans to construct two carbon capture plants on Crossness Nature Reserve in Bexley borough. These plants are intended to capture emissions from two local waste processing facilities, aiming to prevent 1.3 Mt of CO2e annually. However, the project involves building on six acres of the nature reserve’s grazing marshland, a habitat rich in wildlife, including barn owls, kestrels, water voles, and kingfishers. Members of the community are deeply concerned about the potential loss of biodiversity and the impact on local wildlife habitats. They fear the project could lead to chemical contamination of local waterways and view the carbon capture plants as potentially detrimental to the community. The Cory Group, however, argues that the project will result in a net increase of the nature reserve’s area by six hectares and contribute to local biodiversity and green spaces. The company is conducting a public consultation to incorporate community feedback into their plans. (News Shopper)
ASIA PACIFIC
Our own system – Japan’s Gifu prefecture has established its own forest-based carbon credit system, which targets forests that are not covered by the national J-Credit scheme, the local government recently announced. Once registered, a forest project will have a certification period of eight years under the local offset scheme, and the credits are valid for five years after purchase, according to policy documents. The government’s aim is to issue 10,000 tonnes of credits annually in three to four years and has started accepting applications from forest owners and developers.
Death spiral – A draft decision by Victoria’s Essential Service Commission (ESC) could see households pay up for a new connection to the gas network, as the state works to electrify the residential sector, Renew Economy reports. The rule change in the Gas Distribution Code of Practice is a proposal for new customers to pay upfront charges when a new gas connection is installed, which would bring gas networks in line with electricity and water, which already require up-front payments for new connections. ESC Chair Kate Symons said in a statement that the move aims to remove any inefficient incentives that might be encouraging new gas uptake. She added that it would also support Victoria’s energy transition to net zero emissions and support customers during the transition from fossil gas to electricity. Earlier this year, the state government announced it would ban gas connections in new homes.
AMERICAS
Senate shuffle – Following Senator Joe Manchin’s (D-WV) decision not to run for reelection and the Senator Tom Carper’s (D-DE) retirement, the top Democratic spots on two Senate committees that deal predominantly with energy and environmental issues will be open in the next Congress, and two likely successors are already being identified, reports E&E. Senator Martin Heinrich (D-NM) is Manchin’s likely successor on the Energy and Natural Resources committee, while all signs point to Senator Sheldon Whitehouse (D-RI) replacing Carper on the Environment and Public Works committee, either as chair or ranking member, depending on which party controls the Senate in the next Congress. Both are climate hawks and senior members of the respective committees, and environmentalists have expressed hope that Heinrich and Whitehouse could bring further environmental accomplishments. Whitehouse in June 2022 introduced legislation that would establish a US carbon border adjustment mechanism, and earlier this month praised the introduction of another US CBAM bill by a pair of Republican senators.
Shutdown seemingly stalled – On Tuesday, the US House of Representatives passed a stopgap funding bill to fund the government past the end of the year. The bill passed the House on a bipartisan line with a vote of 336 to 95, with 209 of the yes votes coming from Democrats, despite the Republicans holding majority in the chamber. Conversely, the bill was opposed by 93 Republicans and two Democrats. With a government shutdown looming if funding was not passed by the Friday deadline, Senate leaders and President Biden have said they intend to pass the measure. (CNN)
Climate divide continues – House Republicans on Tuesday shunned the Biden administration’s climate policies as the federal government released an annual report warning that climate change was becoming an increasingly dire threat to people and the planet, highlighting the opposing stances of the parties regarding the climate crisis. On one side, Cathy McMorris Rodgers (R), House energy and commerce chair, condemned the Environmental Protection Agency’s (EPA) efforts to reduce greenhouse gas emissions from power plants in a subcommittee hearing Tuesday morning. Meanwhile, Representative Frank Pallone (D), McMorris Rodgers’ counterpart on the committee, said the EPA’s proposed action was crucial to protect communities from the devastating impacts of the climate crisis while growing the nation’s economy in its fight to lead the way in the clean energy transition. McMorris Rodgers and Pallone are set to co-lead a bipartisan congressional delegation to COP28 later this month, and their conflicting views do not bode well for the prospects of a bipartisan agreement on climate issues. (E&E)
Net zero gas – Oil giant Petrobras and the largest petroleum distributor in Brazil, Vibra, are claiming to sell the first carbon neutral gasoline in Brazil, according to a Wednesday press release. Carbon offsets purchased by Petrobras to make up for the emissions from gasoline are behind the carbon neutral claims. The offsets are all forest carbon projects from the Amazon. The product will only be sold at Petrobras Podium gas stations.
Calling all carbon removers – Carbon removal market tracker CDR.fyi launched its Market Outlook Survey Wednesday – the world’s first carbon removal supplier and buyer survey, it claims. The community is looking to assess current and future capacity and demand for durable CDR. Buyers and suppliers can complete the survey until the end of November, with reports to be published in Jan. 2024.
Linkage opposition – Washington state’s Environmental Justice Council opposed the linkage of Washington’s carbon market with the joint California-Quebec market, in a letter addressed to Director of Ecology Laura Watson, dated Oct. 26. On Nov. 2, Watson announced the Department of Ecology’s intent to link the markets. In an email response to local news outlet the Washington State Standard, she also noted that the department is looking into the council’s policy proposals and will continue to engage with the council throughout the linkage process. The council is comprised of 14 members, all appointed by Governor Jay Inslee (D), and is mandated to provide guidance on the development and implementation of the state’s cap-and-invest programme, as well as revenues collected from the auction of allowances. (Spokane Public Radio)
Carbon capture well done – McLean County, located in central Illinois, saw its Zoning Board of Appeals (ZBA) vote Tuesday night to recommend an amendment to the county’s zoning code that would add a new parameter for regulating the drilling and placement of underground carbon storage wells. The county board will now vote on whether to include language that outlines that wells not to be within 1,500 feet (457 metres) of an occupied home, livestock shelter, commercial or manufacturing building, school, house of worship, or community building, as well as a requirement for the permit applicant or well owner to work with local fire and emergency management agencies to develop and fund emergency response plans. The past few months have seen much local discourse on the issue, as the county board’s land use committee first drafted and proposed the amendment in September. This was followed by a legal opinion issued by the Attorney’s Office on the county’s role in carbon sequestration well regulation and several public hearings hosted by the ZBA. (WGLT)
VOLUNTARY
ARR Integrity – Verra is launching a public consultation on its ABACUS label, a new mark of quality that can be applied to credits from projects validated and verified to Verra’s new afforestation, reforestation, and revegetation (ARR) methodology as long as they meet the criteria. These include requirements in additionality and baseline, leakage, greenhouse gas accounting, and permanence. The ABACUS label also aims to advance several Sustainable Development Goals (SDGs), including Zero Hunger (SDG 2), Climate Action (SDG 13), and Life on Land (SDG 15). Responses and any other feedback may be submitted using the consultation feedback form by Dec. 15, 2023.
SHIPPING
A first for ammonia – Finnish technology group Wartsila has introduced the marine sector’s first commercially available 4-stroke engine-based solution for ammonia fuel. Renewable ammonia may be one way for the shipping industry to decarbonise as it seeks alternatives to the heavy fuel oil it has been using. The ammonia solution is now commercially available, and the company claims the new Wartsila 25 Ammonia solution can immediately reduce GHG emissions by more than 70 % compared to a similar-sized diesel solution. (Offshore Energy)
AND FINALLY…
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