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TOP STORY
Researchers warn of potential climate tipping points and urge fossil fuel phaseout
Analysis by more than 200 researchers from around the world, published on Wednesday, has warned of a series of potential negative tipping points for the climate while setting out opportunities to try to create positive tipping points, for instance by phasing out fossil fuels.
COP28
Global CO2 emissions reach record high in 2023 -scientists
Fossil fuel emissions reached a record high in 2023, according to new scientific research published on Tuesday, as reductions in CO2 in some regions were cancelled out by increases in output elsewhere.
World still warming two years after Glasgow agreement -report
Temperatures are still on track to rise by 2.5C compared to pre-industrial levels, despite an inter-governmental pledge at COP26 in Glasgow to strengthen national climate targets, a report revealed on Tuesday.
A stocktake of the Global Stocktake – assessing the direction of travel after first text released
A meaty Global Stocktake (GST) negotiation text was published overnight – a document seen by some as a litmus test for success at COP28 – with all options seemingly still on the table and battles lines starting to be carved out, particularly over who wants what regarding the contentious question of a fossil fuel phaseout.
UAE joins Paris-aligned coal phaseout pledge, adding momentum to growing movement
The UAE has joined a group of around 180 countries, cities, regions, and organisations aiming to accelerate the phaseout of coal-fired power and transition to clean energy, as the COP28 host helps to strengthen a common call to end the era of new coal power.
Fossil fuel industry embraces a phasedown of emissions, rather than production
While COP28 negotiating parties grapple with language surrounding the phaseout versus phasedown of fossil fuels, industry delegates demonstrated limited enthusiasm to reduce production of oil and gas amid activist calls for otherwise during the summit’s thematic Energy and Industry day.
Oil majors unite around urgent action on methane in wake of global summit pledge
Oil majors from France to the UAE highlighted ongoing efforts to cut methane emissions through new partnerships and technologies at COP28 on Tuesday, in line with the target laid out under the Oil and Gas Decarbonisation Charter (OGDC) to reach almost zero methane emissions by 2030.
LEAF Coalition announces first emissions reduction agreement with Brazilian state for 10 mln tonnes
A Brazilian state has become the first jurisdiction in the country to commit to sign an Emissions Reductions Purchase Agreement (ERPA) with the LEAF Coalition, which will pave the way for up to 10 mln forest carbon credits to be sold to corporate buyers once a binding agreement is inked next year.
US states behind on commitments to align with national climate goals, study shows
The 25 US states aiming to align with the country’s nationally determined contribution (NDCs) under the Paris Agreement must turn their emissions pledges into policy, attendees heard at a Tuesday panel as a report was presented showing progress towards the goal.
Japan needs more efficient carbon pricing scheme, business coalition says
A coalition comprising major tech companies in Japan has called on the government to accelerate the construction of the domestic carbon pricing scheme, as they consider current policy arrangements too weak.
Qatar organisation launches initiative to accelerate Article 6 implementation, announces registry buy
A Qatar-based initiative has launched at COP28 to stimulate the rollout of carbon projects that align with Article 6 of the Paris Agreement, while a registry acquisition was announced as part of this effort.
Uganda announces package of energy and sustainability commitments
The Ugandan government launched its Energy Transition Plan (ETP) at COP28 on Tuesday, aiming to boost energy security, environmental protection, and attractiveness to private sector investors in the East African nation.
Major development banks to ramp up sustainability-linked funding to battle nature loss, climate change
A group of eight multilateral development banks and development finance institutions have teamed up to launch a task force to accelerate sustainability-linked finance through approaches like debt-for-nature swaps.
New funds announced to help Global South transition away from fossil fuels
A new flow of money was announced on Tuesday to help the Global South step away from oil and gas, from a growing number of members of international coalition Beyond Oil & Gas Alliance (BOGA).
International fund manager, advisory appointed to $1.5 bln climate finance fund
A group of multinational fund managers and advisories have been tapped to oversee a climate-focused blended finance fund targeting $1.5 billion in debt finance, they announced at COP28 in Dubai.
Bahrain oil major strikes cross-border CO2 transport deal with Japanese shipping giant
Bahrain’s biggest oil company on Tuesday signed a Memorandum of Understanding (MoU) with one of the largest shipping companies in the world for developing a carbon capture and storage (CCS) value chain.
Australia joins UK Clean Energy Transition Partnership
Australia has joined the Clean Energy Transition Partnership (CETP), a UK initiative designed to align international investment strategies with net zero priorities, at COP28 in Dubai.
US climate tech startup secures additional $9 mln in series B funding
A US-based climate tech startup has raised an additional $9 million in equity capital as part of its series B funding round, it announced on the sidelines of COP28 in Dubai.
Alberta eager to produce net zero products for the world
Least cost, cross-industry innovation, a favourable geologic landscape for carbon storage opportunities, and beneficial tax treatment make Alberta a hub for net zero industrial products, the provincial premier said at a panel discussion on Tuesday at COP28 in Dubai.
Abolish fundamentally-flawed carbon offset industry, Dutch NGO urges
A Dutch NGO has called for the abolishment of the voluntary carbon offset industry, highlighting what it sees as a myriad of fundamental flaws that go to straight the heart of the system.
Canadian carbon offset fund exceeds initial target
A Canadian fund to develop offset projects for the North American compliance and voluntary carbon markets has surpassed its initial fundraising target of C$115 million ($84.6 mln).
Major UK firms invest in soil carbon startup
Two major UK-based companies have invested in a soil carbon measurement startup, according to media reports.
Roundup for Day 6 – Dec. 5
It’s Day 6 of COP28. A heady mix of philosophical and practical disputes pervades the air. Elusive, almost existential questions, like “what is a ‘global stocktake’?” baffle parties, press, and observers alike. The theme of the day is energy and industry, catalysing protests but perhaps not much else – as Carbon Pulse entered Expo City to chants, hope, and disillusionment. While the COP president asserts he is “crystal clear” on his commitment to climate science, are parties equally (or more) committed to the cause of a green energy transition? In our daily running blog, Carbon Pulse will report relevant or useful updates throughout the day. Timestamps are in local time (Gulf Standard Time, GMT+4).
INTERNATIONAL
More import regulation needed to tackle vast emissions from agricultural deforestation, says report
Deforestation and peat loss driven by the expansion of agricultural production are generating a vast carbon footprint that requires stronger action from world leaders particularly in importing nations, according to a report published on Tuesday.
EMEA
ANALYSIS: EU-US cleaner steel deal to be postponed until after elections amid rules friction
A definitive deal between the EU and the US involving the decarbonisation of the steel and aluminium industries is likely to be postponed until after next year’s elections in both places, as fundamental differences between the two sides have emerged and the EU’s carbon border adjustment mechanism has complicated matters.
Euro Markets: Prices drop below “formidable” price support as participants look for signs of rally
European carbon came under more pressure on Tuesday, falling below a “formidable” price support to a new 13-month low as sellers continued to dominate, causing some traders to wonder whether there is a bullish short-term scenario, while energy markets fell for a second day as weather remained mild and renewables output was healthy.
Madagascar latest country to secure World Bank emissions reductions payment
Madagascar has received nearly $9 million from the World Bank for emissions reductions worth 1.76 mln tonnes of CO2 from REDD+ forestry activities in 2020, according to an announcement this week.
AMERICAS
PREVIEW: Traders divided over likelihood of RGGI Q4 auction clearing above CCR trigger
Market participants were divided over whether the December RGGI auction would clear above or below the Cost Containment Reserve (CCR) trigger price, but even participants who were expecting extra volume said it was unlikely to sell out.
PREVIEW: Washington’s Q4 carbon allowance auction expected to clear above Tier 1
Most market observers expect Washington’s final cap-and-trade current vintage auction for 2023 to settle above the Allowance Price Containment Reserve (APCR) Tier 1 price and consequently trigger a reserve permit offering for the third time this year.
Washington lawmakers seek to lighten cap-and-invest regulations for biofuels
Lawmakers introduced a new bill in Washington’s Senate on Tuesday, looking to loosen cap-and-invest programme requirements for biofuels in the state.
Canadian carbon removals developer announces fourth technology partnership
A Montreal-based carbon removals developer has partnered with a UK-based direct air capture (DAC) company to deploy its technology in Canada.
ASIA PACIFIC
NZ ETS auction declines, again – costing the government NZ$1 bln
Wednesday’s quarterly NZ ETS auction declined, completing a year of failed allowance sales – which will result in the entire year’s worth of auction volume being cancelled.
Chinese firm to study feasibility of REDD+ project in Laos
A Chinese company has teamed up with the Lao government to assess the feasibility of a REDD+ project in the Southeast Asian country, local media reported.
VOLUNTARY
CIX to launch standard spot contract based on CCP-labelled carbon credits
Singapore-based Climate Impact X (CIX) is set to launch a set of standard spot contracts based on the Core Carbon Principle (CCP) mark of integrity from the ICVCM, as it seeks to establish the key benchmark for the voluntary carbon market.
Corporates can make carbon neutral claims under ISO with carbon credits that fail CCP grade
Corporates can claim carbon neutrality under the guidelines of the International Organisation for Standards (ISO) by offsetting their emissions with carbon credits that have failed to meet the CCP integrity label of the ICVCM, an ISO spokesperson confirmed this week.
Microsoft makes biggest investment into nature-based removals to date
Microsoft has concluded its biggest deal to date for nature based carbon credits, agreeing to buy afforestation, reforestation and revegetation (ARR) units from a Brazilian startup that has ambitions to replant parts of the Amazon with native species, Bloomberg reported on Tuesday.
Non-profit says corn ethanol carbon removal is mislabelled
Producing corn ethanol emits GHGs and using a carbon capture plant at a biofuel facility doesn’t result in a net-carbon removal, argued a climate modelling non-profit.
BIODIVERSITY (FREE TO READ)
Australia passes Nature Repair Market bill after govt strikes deal with the Greens
The Australian government has passed its Nature Repair Market legislation in the Senate, paving the way for a domestic biodiversity credit market after it announced it will update the so called ‘water trigger’ assessment on unconventional gas projects to appease the Greens party.
Norway moves closer to approving deep-sea mining
Norwegian politicians have won a preliminary parliamentary majority for a proposal to open up deep-sea mining in the Arctic region, triggering outrage from environmentalists, although the plans have yet to be given final approval.
ADB takes lead in $2-bln Asia-Pacific nature financing initiative
The Asian Development Bank has announced a nature solutions financing hub for the Asia-Pacific region aiming to attract at least $2 billion, with a number of other institutions and organisations expressing interest in participating.
GEF, Earth Fund announce $225-mln funding for massive Pacific Ocean conservation initiative
The Global Environment Facility (GEF) and the Bezos Earth Fund have become the first to pledge financial support for a Pacific Island initiative made Sunday to conserve or implement sustainable activities across more than 1 billion hectares of ocean.
African Development Bank backs own adaptation mechanism over biodiversity credits
A voluntary biodiversity credit market would come with a number of risks, and nations should instead require corporates to pay towards climate adaptation and nature measures, a representative for the African Development Bank (AfDB) said on the sidelines of COP28 Tuesday, as the bank hopes to get the adaptation mechanism it has pushed for years to get approved at the talks.
EU signs forest partnership with Honduras
The EU Commission has signed a forest partnership with Honduras to restore 1.3 million hectares of degraded forests by 2030.
Biodiversity Pulse: Tuesday December 5, 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).
COMMENT
US-EU negotiations on sustainable steel and aluminium showed little progress… so, what’s left for EU’s industry?
Negotiations over the Global Arrangement on Sustainable Steel and Aluminium (GSA) remain stuck in a complex impasse, necessitating substantial concessions that neither the EU or US is willing to provide, writes Irina Kustova, Research Fellow at Centre for European Policy Studies (CEPS).
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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
EMEA
VC scrapes in – New Munich-based venture capital firm Vanagon Ventures has reached the first close of its first fund, at “around 20%” of its €30 mln target. The firm plans to back climate software solutions and has already made 10 investments including the nature-focused Land Banking Group, Sifted reports, while noting a significant cooling in the launching of climate funds since the flurry during the second half of 2022 and the start of 2023. Vanagon is aiming to raise the entire fund by Nov. 2024 and will write cheques up to €500,000 into pre-seed and seed-stage companies, focusing on software for circularity, finance and data, and ESG reporting metrics.
Design deal – The European Parliament and the Council of EU member states have reached a provisional deal on new ‘ecodesign’ rules to make products easier to repair and recycle while fighting planned obsolescence and banning the destruction of unsold textiles. At the heart of the new regulation are “digital product passports” that will provide consumers and repair shops with information about almost every product placed on the EU market – from dishwashers to television sets, smartphones, or textiles.
ASIA PACIFIC
Making allies – Kenya has joined the Global Biofuels Alliance and the International Solar Alliance, Indian Prime Minister Narendra Modi announced on Tuesday. Modi said that clean energy is the priority for both Kenya and India, and that President William Ruto’s visit to India has given new impetus to their bilateral relations, according to the statement released by the Indian Prime Minister’s Office. Ruto’s visit comes shortly after the African Union joined the G20 in September, which was hosted by India. Modi also lauded Kenya’s initiative to host the African Climate Summit earlier this year.
Climate funds – Japan plans to issue 1.6 trillion yen ($11 bln) worth of climate transition bonds with five- and 10-year tenors in February, and the first auction is set to be held mid-February, according to Reuters. The auction is part of the Kishida government’s plan to issue an estimated 20 trillion yen worth of “green transition” bonds to help finance investment to achieve a carbon-neutral society.
AMERICAS
Assessing the first element – The US Department of Energy (DOE) on Tuesday released the findings of a report detailing pathways to achieve its goal of making hydrogen an affordable and abundant source of clean energy, and examining different avenues to get there through thermal conversion. The Hydrogen Shot Technology Assessment: Thermal Conversion Approaches report lays out a snapshot of various thermal conversion roadmaps for clean hydrogen production, including technology status and envisioned approaches for achieving the Hydrogen Shot goals through research, development, and deployment advances. The DOE will provide similar technology assessments of hydrogen production from electrolysis pathways and advanced pathways in the next two reports in this series.
Call for credits – The US Treasury has been overwhelmed by applications for bonus Inflation Reduction Act (IRA) clean energy tax credits in low income communities, Reuters reports. Clean energy tax credits in the IRA were designed to offer a 10-20% bonus in addition to the base 30% investment tax credit in case the projects are located in low income communities, on Native American land, or part of affordable housing projects. The aim was to drive investment to the economically disadvantaged that have long suffered from job loss. However, data released on Monday showed extraordinary demand for the extra tax credit on projects estimated to be worth billions of dollars. The Treasury will hence prioritise projects with ownership by non-profits, local or tribal governments, or worker cooperatives, in addition to location criteria, a Treasury spokesperson said. A lottery system may also be used for allocations meeting similar criteria.
Carbon castigating – The Speaker of Canada’s Senate ruled two independent senators were intimidated and had their privileges breached when Conservative Senator Don Plett berated them for not immediately supporting carbon pricing carveouts for facility heating on farms, The Canadian Press reported Tuesday. Senate Speaker Raymonde Gagne ruled the reaction by Senator Plett was disproportionate and could not be justified. Senator Plett had earlier apologised in the Senate on Nov. 24. The bill to carve out carbon pricing on farm operation buildings is still in its third reading in the Senate, and would require majority support from the House of Commons to become law.
City strategy – The US Department of Energy (DOE) has awarded the city of Tulsa, Oklahoma $50,000 to develop a strategy to bring renewable electricity companies to town, 2News Oklahoma reported Tuesday. The city’s development department applied to the DOE’s Make It prize, and won with a plan to build a plan with Tulsa Innovation Labs and incubator Rose Rock Bridge.
SHIPPING
Tool time – As the January entry of international shipping into the EU ETS draws nearer, companies are unveiling more services to help maritime companies manage their obligation. Shipbroker SSY today announced the launch of a new carbon calculator to enable clients to estimate the cost and quantity of EUA purchases they will require. Meanwhile, MCS, a joint venture between New York-based maritime software firm OrbitMI and broking giant Ifchor Galbraiths, has developed its own emissions estimator tool to deliver an accurate readout of estimated CO2 emissions on various routes, showing both EU ETS cost exposure and the impact on the IMO’s Carbon Intensity Indicator (CII).
AND FINALLY…
Credits for plastic, are they fantastic? – Many companies are turning to plastic credits amid growing pressure to address the global plastic pollution crisis as proponents say they open up a critical funding stream for waste management in the developing world. However, critics say they won’t work, and instead reflect the same type of “junk” credits reported in the voluntary carbon market (VCM). Environmental advocates and experts are concerned that credits justify ongoing plastic production and distract from more aggressive policies to make producers responsible for waste management. While several plastic crediting organisations, including Verra and PCX, are advocating for plastic credits to play a role in the UN’s global plastics treaty, many environmental advocates are calling for a different approach following the controversies of the VCM. (Grist)
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