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
Canada will use cap-and-trade to tackle oil and gas sector emissions
The Canadian federal government confirmed on Wednesday that its long-awaited oil and gas emissions policy will come in the form of a cap-and-trade system, but there appears to be some confusion as to when it will start.
COP28
Thailand poised to conclude first Article 6.2 carbon transfer for Paris Agreement compliance
Thailand has already issued mitigation outcomes from its landmark electric bus Article 6.2 carbon crediting programme and is “on track” to complete the first-ever transfer of an ITMO for use under an NDC national emissions pledge before the end of the COP28 conference, according to stakeholders close to the process.
First carbon market financing of large-scale grid infrastructure proposed with new methodology, using Art. 6.2
The first use of carbon credits to de-risk the financing of large-scale grid infrastructure build-out in developing countries, using the Paris Agreement’s Article 6.2 mechanism, has been put forward with the launch of a new study in partnership with a European utility-backed project developer, to be put into practice in an African country in need of transmission line upgrades.
Denmark calls on EU to go for 90% emissions cut by 2040
Denmark’s climate minister Lars Aagaard urged the European Commission on Wednesday to adopt a proposal for the EU to cut emissions by 90% across the bloc by 2040, the first member state to come up with a position on the interim goal towards the bloc’s binding mid-century net zero target.
Article 6 carbon markets texts forwarded to second week with Parties far from consensus
Texts regarding carbon crediting and trade under Article 6 of the Paris Agreement were forwarded to the second week of COP28 on Wednesday, but under strict understanding that much of the language does not reflect consensus, with Parties describing sections as “disrespectful” and “unacceptable”, observers and negotiators told Carbon Pulse.
Indonesia seeks to use Article 6.2 to fund floating solar projects in 2024
Indonesia is exploring using carbon credits generated under Article 6.2 of the Paris Agreement to fund floating solar projects in the country as soon as next year, as analysis this week has downgraded the rating of its climate targets and actions to “critically insufficient”.
War-torn Ukraine’s climate plans overshadowed by rising conflict emissions
Ukraine’s government is persisting in its efforts to introduce an ETS by 2025 and in plans to re-build the war-torn country in a greener way, though these initiatives are undermined by Russia’s continuous attacks as well as increasing emissions and environmental damage caused by Moscow’s aggression.
Singapore progresses ICC agreements on sidelines of climate talks
Singapore has concluded negotiations with a series of nations across Asia, Latin America and Africa on implementation of Article 6 to give it access to international carbon markets.
Abu Dhabi-based wealth management firm to launch $250-mln carbon credit fund
An Abu Dhabi-based wealth management firm is launching a $250-million fund to invest in carbon credits.
Experts seek to avoid ‘false start’ in efforts to scale up durable removals
Accelerating the deployment of engineered carbon dioxide removal (CDR) technology involves de-risking investments, fostering partnerships between industry and government, and a clear mandate that is not too prescriptive, panelists said on the sidelines of COP28 in Dubai on Tuesday.
French developer secures nature-based projects in the Philippines, Nigeria
A French project developer has agreed terms with local authorities to develop projects in the Philippines and Nigeria that are expected to generate tens of millions of carbon credits over coming decades.
New hydrogen methodology risks greenwashing, say green groups
A new hydrogen methodology presented at COP28 may facilitate greenwashing practices from the fossil fuel industry, say concerned NGOs.
Roundup for Day 7 – Dec. 6
It’s Day 7 of COP and Carbon Pulse journalists are still going strong as Week 1 draws to a close. ‘Urbanisation Day’ here in Dubai, and several scary reports are emerging around global warming tipping points, as progress continues in negotiation rooms on the Global Stocktake and Article 6, with phaseout language, and UN carbon crediting rules in focus. The EU’s CBAM and concerns over a clean energy subsidy race are also infiltrating negotiating rooms, a key theme likely to spill over into Week 2. 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).
EMEA
ANALYSIS: EU shake-up to ETS free allocation only a partial effort to speed industrial decarbonisation
The European Commission has unveiled draft plans to force the EU’s dirtiest factories to pay for more of their CO2 output by curbing their ETS free allocations, a move some observers say would spur significant emissions cuts but still give a free ride to some major polluters.
UK’s energy supply could need £900 billion to reach net zero by 2050 -report
More than £900 billion in public and private investment could be needed to ensure the UK’s energy supply achieves net zero by 2050, requiring strong commitment and collaboration from banks, investors, government, and energy companies, according to a report published on Thursday.
UK manufacturers urge government to introduce a CBAM before 2026 to align with EU
Make UK, a trade body for UK manufacturers, has renewed calls for the British government to introduce a carbon border adjustment mechanism for energy-intensive industries before 2026 to align with the timescales of the EU’s version.
Euro Markets: EUAs slide to another 13-month low as funds boost net short even as expiry looms
European carbon gave up a modest recovery on Wednesday morning to slump to a new 13-month low after weekly position data showed investment funds had further increased their already-record net short positions with the Dec-23 futures contract just eight trading days away from expiry, even as natural gas and power prices snapped a sharp two-day loss.
AMERICAS
Carbon pricing widened environmental justice gap in Canadian province -study
A Canadian province’s price on carbon lowered emissions and created co-benefits in every area of its jurisdiction, but environmental improvements were greatest in the wealthiest areas, according to a study published Tuesday.
Alberta TIER market credit prices retreat to eight-month low in November
Spot credit prices under the Alberta Technology Innovation and Emission Reduction (TIER) programme in November more than reversed the previous month’s gains despite record-high transactions, with low spot volumes and political developments likely hindering prices, a report published Tuesday said.
ASIA PACIFIC
India’s biggest developer partners with major state-owned oil firm to promote solar cookstoves globally
An Indian carbon offset project developer has signed a Memorandum of Understanding (MoU) with a major government-owned oil company to promote indoor solar cooking systems at the household level in India and other developing economies, it said Wednesday.
Japanese developer secures partnership for credit generating project in Vietnam
A Japanese project developer has teamed up with a major tech company in Vietnam to expand its carbon credit generating business in Southeast Asia, with a focus on sustainable agricultural practices.
VOLUNTARY
Lufthansa dives into DAC credits by joining Airbus carbon removal scheme
Lufthansa Group has agreed to pre-purchase direct air carbon (DAC) credits from the Airbus carbon removal scheme as part of its target to halve net CO2 emissions by 2030 compared to 2019.
Exchange to launch voluntary carbon contract with highest-rated credits
A Singapore-headquartered carbon exchange has teamed up with a project ratings agency to launch a new contract for the voluntary market that only includes credits from the highest-ranked projects.
UK advertising watchdog discovers airlines’ bogus green claims with artificial intelligence
Three airlines have over-egged their green credentials, the UK’s advertising watchdog said on Wednesday, upholding investigations into misleading claims about the environmental impact and sustainability of flying.
Insurance firm expands its nature-based commitment by investing in Alberta’s forest restoration project
An Ontario-based insurance company announced its partnership with a Canadian forest carbon project on Wednesday to revitalise 1,280 acres (520 ha) of degraded land in Alberta.
BIODIVERSITY (FREE TO READ)
Biodiversity Credit Alliance: Nature targets a key demand driver for credits
Nature targets will be a core driver of demand for biodiversity credits, as companies can already see the business case for the market, according to a survey published by the UN-backed Biodiversity Credit Alliance (BCA).
Amended Nature Repair Market legislation welcomed, but overarching concerns remain, groups say
Environmental groups and nature experts have welcomed Australia’s Nature Repair Market (NRM) legislation being passed in Parliament with amendments to prohibit the use of offsets, however lingering fears remain about how this would work in practice.
UNESCO to forward sell biodiversity credits from world heritage site next month
The United Nations Educational, Scientific and Cultural Organization (UNESCO) is reportedly exploring forward selling biodiversity credits from its world heritage sites.
SBTN to launch targets for nature in cities in 2025
The Science Based Targets Network (SBTN) is developing targets for nature focused on cities, it announced at a COP28 presidency event.
—————————————————
Premium job listings
- Feature Writer/Sub-Editor, Carbon Pulse – North America
- Senior Advisor, REDD+, Fauna & Flora International – Cambridge, UK
- Senior Program Officer, Auditing and Accreditation, 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
EMEA
Coal comedown – Germany generated 47.3% less electricity from coal-fired power plants in the third quarter of 2023 compared to the same period last year, the Federal Statistical Office (Destatis) announced. The share of electricity from coal-fired power plants was 23.9%, less than that of wind power. Coal-fired power in the third quarter of 2022 still accounted for 36.2% of domestic electricity generation and was also the most significant energy source in electricity generation for the entire past year, Destatis stressed. Following the shutdown of Germany’s last three nuclear power plants in April, there was no nuclear plant-generated electricity in Germany in the third quarter. By contrast, nuclear power plants generated 8.7 bln kWh of electricity in the same period last year, contributing 7.4% to domestic electricity feed-in. The feed-in of electricity generated from natural gas, meanwhile, rose from 9.3% last year to 12.7% in the months from July to September 2023. (Clean Energy Wire)
Wood could – The latest auction for bioenergy plants in Germany has significantly overshot expectations, attracting bids for three times the volume up for auction, the Federal Network Agency (BNetzA) announced. With more than 890 bids for the auction from October, the agency received almost twice as many bids as in the previous tender. “Never have there been more bids in a single auction round,” said BNetzA head Klaus Mueller. The network had auctioned a volume of 288 MW but received bids for projects with a volume of 910 MW. It accepted 270 bids, filling the auctioned volume. Most successful bids were made for installations that are already in operation and for which operators sought to secure new guaranteed remuneration conditions. The average support of accepted bids stood at about 18.2c/kWh, slightly down from 18.9 c/kWh in the previous round. “Falling prices demonstrate the increase in competition,” Mueller said. The next auction for bioenergy will take place in April 2024.
AMERICAS
Advertiser amplification – TV screens across California are being swamped with multimillion dollar pro-oil advertisements from unknown sources, blaming state environmental laws for energy prices, E&E News reported Wednesday. Californians for Energy Independence and Californians for Affordable and Reliable Energy are behind the $4.3 mln ad blitz on TV and Facebook, but are not revealing their membership. The ads don’t mention specific environmental policies by name, nor do they target specific upcoming votes or political candidates. Californians will vote on whether to overturn a state law prohibiting new oil wells near schools, homes, and parks next year.
Charger challenge – No electric vehicle charging stations have been installed two years after the US Congress approved $7.5 bln in the Bipartisan Infrastructure Law to install tens of thousands of them, Politico reported Tuesday. Both state governments and chargermakers say new contracting and performance requirements for receiving federal funds are to blame. Most states have not begun taking bids from charger contractors to receive the funding.
Prairie planning – The prairie province of Saskatchewan has committed C$500,000 to the towns of Coronach and Hart Butte to use coal alternatives like char production and utilisation for energy and agriculture, CTV News reported Tuesday. A coal power plant near Coronach is scheduled for decommission by 2030. Coal currently accounts for 32% of Saskatchewan’s power production.
VOLUNTARY
Anyone for BECCS? – Nordic bank SEB is looking for companies to buy Bio Energy Carbon Capture and Storage (BECCS) credits from Inherit Carbon Solutions, which is developing four projects that will have the capacity to remove 70,000 tonnes of CO2 a year, with production starting in the second quarter of 2025. The projects are being developed with several biomethane producers in Sweden, Norway, and Denmark. They aim to capture and permanently store CO2 that arises from biogas production from fish, food, and agricultural waste. SEB will approach 400 companies to start with.
INVESTMENT
Funding boom – Boomitra, an AI-powered international soil carbon marketplace, raised around $5.5 million recently. It now hopes to go for another round in 2024. Speaking to CNBC-TV18, Ganesh Babu K, Managing Director – India and SBU Head APAC and Africa of Boomitra, said “We are likely to be self-sufficient after we complete our first cycle. If we want growth, we will need to raise a Series A. So, we keep that option open.” He added further that the company’s focus is the global south. “We have 5 million acres on your platform – Mexico is number one, then we are in Kenya. We are working basically in East Africa in Kenya and Rwanda. India is the second biggest country for us.”
AND FINALLY…
Colour me surprised – US-based innovative materials company Living Ink has secured $3.5 mln to carry forward its mission to revolutionise the ink and pigment industry with its patented, carbon-negative pigment solution, Algae Black, TexFash reports. Some $1.75 mln was awarded through the US Department of Energy’s (DOE) grant programmes. Living Ink has launched trims, packaging, and apparel products with Patagonia, Nike, Coach, New Balance, American Eagle, and many other industrial-scale adopters. Its technology offers a drop-in replacement for traditional, petroleum-derived carbon black, with songstress Billie Eilish recently launching Nike’s footwear coloured by and co-branded with Living Ink biomaterial.
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
