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TOP STORY

WCI Q4 carbon allowance auction clears at record high

The August California-Quebec current vintage carbon auction settled at an all-time peak, even surpassing secondary market prices, while the advance sale clearing price also achieved a new high, according to government data published Wednesday.

EMEA

European Commission proposes forest monitoring framework for voluntary national reporting

The European Commission published a proposal on Wednesday for a monitoring framework to help protect the EU’s forests, which have become increasingly at risk amid rising temperatures.

Exit polls call far-right Freedom party victory in Dutch election, but anti-Islam eurosceptic Wilders seen unlikely to be PM

Geert Wilders, known for his anti-Islam and eurosceptic views, is set to be the unexpected winner of Wednesday’s Dutch election, according to media reports citing exit polls.

UK government extends climate levy reduction for companies that meet emissions targets

The UK government on Wednesday said it is extending climate levy reductions for companies that meet 2030 emissions targets, among other measures to bolster the path to net zero and reassure investors in green industries, in a finance statement that was lighter on climate policy than some had hoped.

NGOs win legal action against Romania’s polluting coal plants, prompting reforms and possible closures

NGOs have won a legal battle against illegal pollution caused by coal plants in Romania that is expected to lead to the closure of a number of facilities in the country, they announced on Wednesday.

Euro Markets: EUAs post new one-year low after early attempts at rally are beaten back as funds trim shorts

European carbon prices set a new year-to-date low amid wild fluctuations in the morning, before falling throughout the afternoon to register their lowest settlement in a year, as traders positioned themselves both before and after the weekly Commitment of Traders data release, which showed investors had trimmed their net short for the first time in five weeks.

German climate tech firm launches corporate biochar pre-purchase platform

A German climate technology company has launched a solution that enables corporate buyers to purchase biochar credits in advance from emissions removal activities in the agriculture sector, it announced on Wednesday.

AMERICAS

California offset issuance declines as DEBs’ spread widens amid supply constraints

California regulator ARB slashed its compliance offset issuances by almost half in comparison to its prior distribution, state data published Wednesday showed, while premiums for units tagged with direct environmental benefits to the state (DEB) surpassed previous records.

UPDATE – Pennsylvania governor will appeal RGGI court ruling, but experts warn of “uphill climb”

The legal battle over whether Pennsylvania can join RGGI through executive action will continue, following an appeal from Governor Josh Shapiro (D) of a Nov. 1 Commonwealth Court ruling that blocked the state’s regulations.

ASIA PACIFIC

Australia announces major expansion to renewable energy auction scheme to turbocharge investment

The Australian government will expand its capacity investment scheme (CIS) to secure 32 GW of new wind, solar, and storage output, in a major gear shift to meet its 82% renewable energy target by 2030.

Japan adds J-Credit methodology for beef cattle feeding

The committee steering Japan’s J-Credit programme has approved a new methodology on the introduction of a new feeding practice for beef cattle, as the government continues to expand coverage in the domestic offset scheme.

Australian oil and gas firm signs with pipeline company to progress third-party CO2 sources for CCS plant

Australia’s Santos has signed an agreement with one of the country’s largest pipeline operators to look at developing more CO2 infrastructure to service its planned carbon capture and storage facility at the Moomba gas plant.

New Zealand voluntary carbon certification scheme to stop accepting NZUs

A New Zealand voluntary carbon certification and advisory service provider will transition out of accepting government-issued NZUs in its programmes, because they are not as rigorously assessed as those submitted to the Integrity Council for Voluntary Carbon Markets (ICVCM), it announced Thursday.

INTERNATIONAL

INTERVIEW: Green Climate Fund to prioritise scaling private capital to meet $50 bln target

The UN’s Green Climate Fund (GCF) will look to ramp up its focus on attracting private capital as part of reforms to the mechanism, as it seeks to scale funding to $50 billion by 2030 and address criticism of its role in channeling climate finance, a senior member of the body told Carbon Pulse.

Dubai Ocean Declaration urges robust monitoring standards for blue carbon removals

International stakeholders have ahead of COP28 called on world leaders to vastly improve monitoring, reporting, and verification of ocean-based climate activities, including carbon removals, to improve understanding of mitigation and adaptation strategies, in what has been coined the Dubai Ocean Declaration.

VOLUNTARY

Nature-based carbon standard launches with new reforestation methodology

A new nature-based voluntary carbon market certifier has released its standard and reforestation methodology, it announced Wednesday.

Alignment needed on best ‘insetting’ practices to reduce Scope 3 emissions, says report

Consensus needs to be established across different frameworks for how to precisely define and implement insetting if it is to effectively scale as a solution for tackling corporate Scope 3 emissions, according to a study published Wednesday.

Clean Cooking Alliance launches accelerator programme to boost carbon finance in West Africa

The Clean Cooking Alliance (CCA) has launched a new accelerator programme to boost carbon finance in the clean cooking sector of West Africa.

Pharma giant, nutrition firm launch regenerative programme in Brazil

A pharmaceutical and biotech giant as well as a nutrition company launched a regenerative agriculture programme to improve soil health and productivity in Brazil on the same day Brazilian President Lula da Silva is expected to announce the country’s restorative pastureland policy.

Voluntary registry announces US and Canadian biochar protocol comment period

A voluntary carbon market registry announced Wednesday a public comment period for a US and Canadian biochar protocol that will provide guidance on how to quantify, monitor, report, and verify emissions reductions from the production and use of biochar.

AVIATION/SHIPPING

Danish shipping giant signs green fuel deal with Chinese clean energy firm

A large Danish shipping and logistics firm has signed a green hydrogen offtake agreement with a Chinese clean energy multinational, saying the deal is the first of its kind in the global shipping industry.

Emissions simulator platform launched to simplify international climate compliance for ship operators

Ship operators can optimise environmental performance and reduce emissions across entire fleets, helping them to more easily comply with international climate regulations, using a new simulator platform launched Wednesday that will later be adjusted to assist with EU ETS compliance.

BIODIVERSITY (FREE TO READ)

EY report claims nature-positive Australia could see A$47 bln in benefits

A report consultants by EY has found that Australia’s carbon market is unlikely to deliver significant nature repair under current settings, but claimed becoming a nature-positive economy could boost Australia’s national income by A$47 billion ($30.7 bln) by 2050.

Canadian miner welcomes US lawmakers’ push for deep seabed mining

Canadian The Mining Company (TMC) has welcomed moves by US senators and members of Congress to influence the UN seabed authority to finalise rules that would allow for minerals mining at the bottom of the ocean.

UBS, Swiss Re sign $2-mln partnership with Indonesian nature venture builder

The philanthropy arms of investment bank UBS and Swiss Re have agreed to invest over $2 million in a partnership with an Indonesia-based company that works to secure investments for scalable nature-based start-ups.

EU lawmakers reject proposal to limit bloc’s use of pesticides

The European Parliament rejected a text for a proposal to limit EU use of pesticides on Wednesday, in a vote that divided lawmakers amid similar tensions to those seen earlier in the year for the bloc’s nature restoration bill.

Banks should support national biodiversity strategies, UNEP says

Banks should set targets supporting countries’ national biodiversity strategies, the UN Environment Programme (UNEP) said in its new nature target-setting guidance, released Wednesday.

WWF announces two biodiversity tech pilots

Green group WWF has announced two biodiversity technology pilot projects it is developing that aim to automate biodiversity monitoring, and predict animal-related epidemic risks.

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Premium job listings

• Feature Writer/Sub-Editor, Carbon Pulse – North America
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• Carbon Finance Project Manager, Nexus for Development – Phnom Penh
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• 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
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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

Coal opposition push – The UK, Canada, Germany, and 12 other countries are leading a push to halt new coal-fired power stations and clamp down on polluting existing plants, in a letter urging the upcoming COP28 to deliver an agreement putting an end to public and private finance for new coal plants.  Almost 200 countries agreed for the first time at COP26 in Glasgow two years ago to phase down coal power without the emissions captured, however coal power has barely dropped since then, with energy demand growing in China, India, and Southeast Asia, even as demand ebbs for the fuel in developed countries. The US is not a signatory to the letter although a senior state department official said that the country stood behind the halting of permits for new and unabated coal developments. COP28 is likely to see a fierce debate arise around the reliance of emerging economies on fossil fuels, such as coal, oil, and gas. (the FT)

EMEA

Battery breakthrough – Northvolt has developed a sodium-ion battery with no lithium, cobalt, or nickel — marking a breakthrough in battery technology that the Swedish industrial startup claims could reduce dependence on China for the green transition, the FT reports. The Northvolt sodium-ion battery is validated at the critical level of 160 watt hours per kilogramme, an energy density close to that of the type of lithium batteries typically used in energy storage, which is important because the amount of energy that sodium-ion batteries typically produce relative to their size has lagged behind lithium batteries up until now. Its technology uses the pigment Prussian blue instead of oxides containing critical metals such as nickel, cobalt, or manganese, which its Chinese competitors are using to produce their sodium-ion batteries. Northvolt plans to provide the first samples of these batteries to customers next year, with full-scale production by the end of the decade. Additional factories will be needed alongside the four factories currently in its pipeline, including an operating plant making lithium-ion batteries for cars and trucks in Sweden, and a further three planned plants in Canada, Germany, and Sweden.

CO2 exports – Switzerland has ratified a 2009 amendment to the London Protocol allowing for the export of CO2 for sub-seabed storage from 2024 onwards, following a Federal Council report of May 18, 2022, which found the further development of negative emission technologies, particularly permanent CO2 storage, to be crucial for achieving both national and international climate objectives. Switzerland will need to call upon geological storage sites abroad to achieve its 2050 net zero goal and storing below the seabed in geological formations is one such solution.

Not today – There was no attempt to reform the controversial Energy Charter Treaty (ECT) at its annual meeting on Monday. With multiple EU nations announcing they will leave the pact due to its incompatibility with the bloc’s climate law, members might have given up on trying to adjust the pact to the reality of things. The EU Commission told us “the modernisation of the treaty was not put on the agenda”. Last week, environmental think tank E3G warned the ECT reform had “already failed”. Read Carbon Pulse’s feature on the Energy Charter Treaty and how it risks EU climate efforts.

Energy communities – The EU Commission approved a €5.7 bln Italian state aid scheme under the Recovery and Resilience Facility to support energy communities. The money will support the production and self-consumption of renewable electricity. Beneficiaries are small projects, with capacity of up to 1 MW, who can access the scheme on a first come, first served basis. The aid “will strengthen citizens’ engagement and first-hand participation in the green energy transition by supporting local communities to multiply renewable power generation installations,” said EU commissioner Didier Reynders, in charge of competition policy. “In line with the European Green Deal, the Italian aid measure will contribute to achieving the EU’s and Italy’s decarbonisation and electricity production targets.”

Climate roadblock – Germany’s climate progress has hit a stumbling block with today’s news that the German parliament’s budget committee has delayed a meeting originally set for tomorrow to finalise the 2024 budget, following a court ruling that cancels €60 bln off a climate fund and could have broader implications for other public spending, Euractiv reports. Last week, the German constitutional court nullified a decision to transfer €60 bln of unused debt authorised during the pandemic into a climate fund, with the government left with the task of how to replace the cancelled sum. The “Climate and Transformation Fund” is not officially part of the federal budget, however, the leaders of Germany’s three-party coalition have still decided to hold back on budget negotiations, cancelling a budget committee meeting on Thursday during which next year’s budget was meant to be finalised. Initially, the budget was meant to be finalised in the committee this week, before being adopted by the plenary of the Bundestag on Dec. 1. Germany’s Economy Minister Robert Habeck has so far declined to give details on how the government plans to replace the €60 bln cancelled from the fund, although he has warned that cutting expenditures could thwart investment into the green transition. Habeck stressed that he wants to stimulate the economy and create jobs by investing in domestic technologies that help protect the climate, even if the current legal situation makes that more difficult. The court’s decision has also led to the finance ministry putting a stop to future pledges for funding Germany’s energy price caps through the Economic Stabilisation Fund, which could lead to higher power and gas prices for consumers in future.

Steel deal – UAE-based energy firm Masdar has partnered with Emirates Steel Arkan to develop a green hydrogen project to help decarbonise the hard-to-abate sector, according to a release Wednesday. The pilot project is said to be the first-of-its-kind in the MENA region. Located in Abu Dhabi, the project is currently in the installation phase. Electrolysers have already been delivered to the site to help produce the ‘green steel’, and the facility is expected to be commissioned in early 2024. The project will demonstrate the use of green hydrogen – instead of natural gas – to extract iron from iron ore, a key step in the steelmaking process.

Tides of change – Scotland’s only oil refinery Grangemouth may cease operations from 2025 under plans announced by owners Petroineos due to global market pressures, with at least 400 jobs threatened in plans to turn the site into a fuels import terminal. Refinery operations are expected to continue until Spring 2025, with work to transform the site into an import terminal for petrol, diesel, aviation fuel and kerosene expected to take about 18 months. The refinery business at Grangemouth is owned by Petroineos, which is a joint venture between Chinese state-owned PetroChina and London-based Ineos. It currently employs about 2,000 people across the refinery, pipeline, and petchem business. The Scottish government has stressed the importance of ensuring a just transition with the project. (BBC)

ASIA PACIFIC

Charged up – The Australian federal and NSW governments have secured 1 GW of dispatchable renewable energy through the government’s Capacity Investment Scheme, Renew Economy reports. The capacity tender was held to fill a potential supply gap from the planned closure of the 2.88 GW Eraring coal-fired power station, also in NSW, in Aug. 2025. Some 1.07 GW of capacity with nearly 3,000 MWh of storage was awarded, representing new projects of A$1.8 bln. More than 3 GW of capacity was bid into the auction. Three of the successful projects are battery energy storage systems developed by AGL Energy, Akaysha Energy, and Iberdrola Australia, while Enel X Australia secured a contract for a demand-response virtual power plant. All projects must be built by Dec. 2025.

Deeper ties – South Korea has signed a Memorandum of Understanding (MoU) with Singapore to pursue collaboration in energy and climate change, including long-term emissions reduction strategies and trade practices to promote a low-carbon economy. Their cooperation will also involve energy technologies and business collaboration between private organisations, according to a statement released Tuesday by Singapore’s Ministry of Trade and Industry (MTI). South Korea was Singapore’s 7th largest trading partner in 2022, with bilateral merchandise trade amounting to SGD$70.9 bln ($52 bln), a 26% increase YoY.

Green for all – The Indian state of Tamil Nadu is in the process of developing a green hydrogen hub, the minister of state for industries, Minister T R B Rajaa said, according to the Press Trust of India. He added that nearly 50% of installed energy capacity in the state was already green and the government was aiming to increase it to 75%. He also said that the state is planning to develop a robust electric vehicle charging infrastructure and that the transition from a fossil-fuel dependency to renewable energy would benefit all.

Give me coal – The Indian government has asked companies from the private sector to pour investments into new coal-fired power plants so that the country can meet its dramatic rise in electricity demand, even as the major economies globally are pressuring the South Asian nation against doing so, Reuters reports. India’s power minister R K Singh on Tuesday asked the power companies to invest in new coal projects and bridge the 30 GW of additional requirement by 2030, just a week before COP28, where countries such as France would seek a halt to private financing for fossil fuel plants. The minister added that India will meet its climate goals despite the addition of fossil fuel power plants.

AMERICAS

Amazon Cops – The Amazon Fund is releasing R$318 million ($64 million) in its first instalment to defend the world’s biggest rainforest, the head of the environmental crimes division of Federal Police, Humberto Freire, told Reuters Wednesday. The air force will monitor the Amazon rainforest with planes and helicopters, while the police will use other vehicles. Security and defense financing from the Amazon Fund will total R$1.2 bln ($240 mln). The money will get distributed by the National Bank for Economic and Social Development (BNDES).

Rules for the road – The Federal Highway Administration announced a climate rule that will require state and local transportation officials to set declining emissions targets for federally funded road projects, E&E reports. Federal funds are a major source of highway funding around the country, and the measure could hence have a wide range of impacts. The measure aims to provide a framework to track carbon pollution and offer flexibility to set their own climate targets, and will set aside $27 bln through the Investing in America agenda to help state and local governments reduce their emissions. The fund includes $6.4 bln especially dedicated to supporting strategy development for emissions reduction.

Wither Washington – Close to 420,000 signatures on a petition to abolish Washington state’s cap-and-trade system were submitted to the Secretary of State’s office, meaning it could appear on the 2024 ballot. State Republicans amassed the signatures on Initiative 2117, decrying the state’s high gas prices. Washington state has the third-highest gas prices in the US and introduced the Washington Carbon Allowance market at the beginning of this year. If at least 325,000 signatures are verified the petition will appear before the Democrat-controlled state legislature. Unless the legislature dispenses of its cap-and-trade system, Initiative 2117 will go on the ballot alongside presidential and congressional candidates in the 2024 election.

Methane management – At least six rules on methane emissions from the US EPA, Treasury Department, Pipeline and Materials Safety Administration, and the Bureau of Land Management are expected to get rolled out over the next six months, E&E News reported Wednesday.  US President Joe Biden is attempting fulfil his promise of crack down on methane emissions, which he made on the campaign trail three years ago. Regulations on leaky pipelines, energy production, oil processing infrastructure, as well as transporting and storing natural gas are all due. Liquefied natural gas terminals and offshore petroleum production facilities could become covered under the methane leakage regulations by 2025. The EPA has three rules due between December and March: New and existing oil and gas sources, IRA methane fee, and the Revised methane reporting rules. The Treasury Department is expected to unveil an IRA hydrogen tax credit in December, while both the Pipeline and Materials Safety Administration’s Pipeline leak detection rule and the Bureau of Land Management’s Gas venting controls for federal leases are many months overdue.

VOLUNTARY

In REDD health – More than 10,000 indigenous and afro-Colombian people have received health benefits over the last few years from four REDD avoided deforestation projects in Colombia, according to project developer Biofix. Projects such as Palameku Kuwei, Kaliawiri, Arlequin and Yaawi IIpana, have run nine community clinics to provide medial treatments such as patient transfers and additional medicine, food and biosecurity kits. Fumigation days have been carried out within the framework of these clinics to prevent the spread and reduce the number of infected adult mosquitoes that could transmit diseases. Biofix is currently supporting the implementation of 11 REDD projects in Colombia, according to its website.

Assessing forest – Verra’s submission of Verified Carbon Standard (VCS) methodologies to the ICVCM for integrity assessments includes forest carbon accounting methodologies used by the American Forest Foundation (AFF). VM0045 and VM0047 are used in AFF’s Family Forest Carbon programme, which provides the tools for small landowners to improve the health and climate potential of their forests. (American Forest Foundation)

SCIENCE & TECH

AND FINALLY…

“Gambling on our future” – Channel 4’s new documentary The Great Climate Scandal, led by journalist Matt Shea, probes into the voluntary carbon market, with a focus on standard-setter Verra and a handful of forest-based projects. The film’s makers say it brings to light critical issues surrounding the VCM, questioning the validity of certain projects and highlighting the potential adverse impacts on local communities and environments. It raises significant concerns about the authenticity of offsetting projects and their impact on the environment and human rights, and underscores the need for stricter scrutiny and more reliable verification methods in the sector, the film argues. The documentary examines Cambodia’s Verra-approved Tumring REDD+ project, highlighting signs of “significant” deforestation through satellite imagery – findings that the film says casts doubt on the effectiveness and authenticity of these initiatives. Other projects in Cambodia, including those developed by Wildlife Alliance, have been linked to human rights violations including intimidation and assaults on local indigenous communities and environmental activists, the film claims. Wildlife Alliance disputed these allegations, asserting that they have adhered to legal standards and have not engaged in violence. In response to the documentary, Verra criticised the portrayal of the VCM and its role, stressing its commitment to integrity and the continuous improvement of its standards. However, the film-makers said Verra was unable to fully address specific allegations due to ongoing reviews of questioned projects.

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