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
COP28
Institute to launch $500 mln fund to buy Paris Agreement carbon credits on behalf of governments
A global institute plans to launch a $500-million fund for buying up Paris Agreement units next year, its head told a side event at COP28 in Dubai, as well as deploying tens of millions of dollars to developing nations through 2027 to help them with technical capacity building.
Bolivia proposes moratorium for Article 6.4 carbon markets, observers suggest “performative” move
Bolivia has called for the ceasing of all market functions under the market-based Article 6.4 mechanism, which it sees as crowding out progress on non-market option Article 6.8, the government said in a statement released Friday at COP28 in Dubai, though observers have said the move is “performative” and is unlikely to have a significant impact on developments on the negotiated texts.
World Bank president calls for more concessional finance as debt embitters climate negotiations
The next replenishment of the World Bank’s International Development Association, its concessional financing arm for the poorest countries, needs to be the “largest of all time”, according to World Bank President Ajay Banga speaking Thursday in Zanzibar as part of the IDA20 Midterm Review.
Canadian emissions cap welcomed but seen at odds with international negotiations
As Canada faces pressure from civil society to swiftly implement regulations, questions remain regarding how its new oil and gas emissions cap policy will reduce emissions while also achieving its stated purpose of enabling enhanced production of the fossil fuels.
Conventional energy sector needs more support to transition, says Canadian provincial deputy minister
Canada’s patchwork system of carbon pricing, particularly relative to US incentives, threatens the competitiveness of Canadian trade-exposed sectors, say representatives of the nation’s oil and gas industries.
Singapore signs first Article 6 implementation agreement with PNG
Singapore has signed an implementation agreement on Article 6 carbon credits with Papua New Guinea, its first of the kind, although environmental groups have called for projects in PNG to be barred from proceeding due to what they argue is poorly crafted domestic carbon market legislation.
Swedish energy agency first partner to new ADB climate fund
The Asian Development Bank’s carbon crediting fund that goes live next year signed its first partner on Friday at Day 8 of the COP28 summit.
Subsidiary of UAE-based investor launches biofuel project in Brazil with large carbon credit potential
A renewable energy subsidiary of an Abu Dhabi-based asset management firm has launched a project in Brazil to produce large volumes of biofuel from a native plant species in the country, which will have substantial potential for generating carbon credits, reforesting the country, and job creation.
Carbon standard Verra to announce research partnership, share first results next year
Voluntary carbon standard Verra will announce on Saturday a partnership with a high-level advisory body to produce research on how best to develop its approach, and share the information with stakeholders as early as the second quarter of next year.
FEATURE – Ocean nations call on high-tech science ship to map marine carbon stores
A science vessel currently docked in Dubai is being called upon by governments around the world to help better understand the carbon and biodiversity stores of their coastal waters.
Consortium launches initiative towards validation of satellite-based forest carbon assessment
A global network of forest mapping and monitoring actors on Friday launched the development of a biomass reference system in an early step towards a free, independent, and public system for the validation and calibration of forest carbon stock data.
Carbon crediting start-up partners with Nigerian NGO for smallholder regenerative farming work
A US-based carbon crediting start-up for smallhold farmers has partnered with a Nigerian non-profit, as it looks to scale its operations in the new year, its co-founder told a side event at COP28 in Dubai Friday.
Roundup for Day 9 – Dec. 8
It is Day 9 of the COP28 climate conference, and weary (or wary) negotiators are returning from Thursday’s rest day. Carbon Pulse correspondents are back on the scene at Expo City, having celebrated the break in negotiations by returning to our regularly scheduled programming: uploading non-COP news. With rumours of the Russian President in town, and the mood in negotiation rooms being described as “toxic”, the UAE hosts have a big job on their hands. In our daily running blog, Carbon Pulse will report relevant or useful updates throughout the day.
EMEA
EU institutions clinch provisional deal on new rules to boost energy performance of buildings
EU institutions agreed on new rules to boost energy performance of buildings across the bloc late on Thursday evening after months of negotiations, though NGOs criticised co-legislators for significantly weakening the European Parliament’s original stance.
Euro Markets: EUAs slump below key level again despite solid buying as energy markets turn bearish
European carbon prices slid back below a key level on Friday after an early rally had pushed the market to its highest in three days, maintaining a close correlation with energy prices that snapped a two-day rising streak amid continued mild weather.
France adds two more carbon methodologies to its certification system
Two more carbon-counting methodologies have been added to the French government’s carbon credit certification programme, the ministry of ecological transition said this week.
AMERICAS
RGGI Q4 auction clears at new all-time high
The Q4 RGGI cap-and-trade auction cleared well above its previous all-time record settlement and in line with broad market expectations, slightly below secondary market values with an uptick in compliance participation, according to results published Friday.
California industrial allowance allocations rise slightly in 2024
California’s free carbon allowance distributions to industrials will rise for 2024, with petroleum and hydrogen production accounting for the highest year-on-year climb, according to data from state regulator ARB published on Friday.
Renewable fuel oversupply possible after small refinery exemption ruling against EPA -experts
The US Court of Appeals for the Fifth Circuit ruling in favour of small refineries’ arguments for exemptions for ethanol blending under the Renewable Fuel Standard (RFS) against the EPA could cause a renewable fuel supply glut, two industry experts agreed.
Producers and speculators shuffle RGAs and CCAs, both shed WCAs
Compliance entities and speculators moved in opposite directions with their California Carbon Allowance (CCA) and RGGI holdings, while both groups reduced their Washington Carbon Allowance (WCA) positions over the last week, US Commodity Futures Trading Commission (CFTC) data showed Friday.
Deforestation in Brazil’s Cerrado hits worst on record -govt data
Deforestation in Brazil’s Cerrado region was the worst on record last month, according to government data.
ASIA PACIFIC
CN Markets: CEA price drops to three-month low amid shrinking compliance demand
The spot price in China’s carbon market over the past week dropped to the lowest level since mid-September amid relatively low trading volume, while liquidity in the national offset market remained stable.
Vietnam studies international experiences to design domestic carbon exchange
Vietnam seeks to learn from international experiences to construct the legal framework for a domestic carbon exchange, as the country is set to launch the marketplace in the second half of this decade.
Local market sees China’s first trade in soil, water conservation carbon credits, feds take notice
A county-level government in China’s Fujian province has sold a batch of the nation’s first-ever soil and water conservation carbon credits with other public agencies queueing to follow, as national regulators eye inclusion of the credit type in the national offset market.
VOLUNTARY
Statkraft signs long-term offtake deal for cookstove carbon credits, plans to buy removals
Norway-based utility Stakraft has signed a long term offtake agreement for African cookstove emissions reduction carbon credits, although the company’s focus is set to switch to removals over time, the company revealed to Carbon Pulse.
Iberian €100-mln forest carbon fund to start selling voluntary credits soon
A €100-million fund will soon start selling voluntary credits generated from its Iberian forest carbon investments.
Xpansiv’s CBL to charge users an access fee to view exchange unless they meet minimal trading volumes
Xpansiv’s spot carbon credit exchange CBL is set to introduce a new fee in January for access to its platform, although charges will be waived for customers that meet minimal trading thresholds, the company announced this week.
BIODIVERSITY (FREE TO READ)
Global Stocktake talks must address nature, WWF says
Nature is not sufficiently addressed in the draft text of COP28’s Global Stocktake, with countries needing to better integrate their national biodiversity and climate plans, WWF has said.
First Zambian green bond will benefit biodiversity, BIOFIN says
A Zambian energy company will issue a $54 million tranche of a green bond programme, the first from a firm in the country, by the end of the year with indirect benefits for forests.
Honduras strengthens commitments to combat illegal deforestation, cattle ranching in Moskitia forest
The government of President Xiomara Castro in Honduras has unveiled an initiative renewing and strengthening its commitments to protect the biosphere of Platano River and the Moskitia forest at COP28 in Dubai.
COMMENT
Paris Agreement forest carbon transactions should follow tropical forest credit integrity guidance
In the context of increasing reports of forest carbon-related cooperative approaches under Article 6 of the Paris Agreement, Parties should apply strive to ensure that all credits transacted are of the highest quality by applying guidance developed by leading environmental and Indigenous organisations, writes the Wildlife Conservation Society and other groups.
—————————————————
Premium job listings
- Senior Advisor, REDD+, Fauna & Flora International – Cambridge, UK
- Senior Program Officer, Auditing and Accreditation, Verra – Remote (Worldwide)
- Feature Writer/Sub-Editor, Carbon Pulse – North America
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
Central powers – A sweeping provisional update of EU regulation detailed this week mandates the European Central Bank to monitor how lenders plan to transition to a net zero carbon economy over the next three decades. The ECB gets those responsibilities after it built up credibility during the decade that it has been the EU’s main banking regulator. The institution has already been more forceful than the US Federal Reserve in pushing lenders to deal with losses they face from extreme weather or the prospect of borrowers with high carbon footprints going out of business, now the ECB will be more explicitly empowered to intervene in cases where it finds that the way a bank manages climate or environmental risks is deficient, potentially creating a threat to financial stability. (Bloomberg)
Gas package – EU co-legislators have reached a provisional deal on a gas regulation enabling countries to effectively ban Russian shipments of LNG without new energy sanctions. The measure would allow member governments to temporarily prevent Russian and Belarusian exporters from booking the infrastructure capacity needed for the shipments of LNG and natural gas. Although there are no EU-wide sanctions on Russian gas, the move is part of the region’s push to shift supplies after President Vladimir Putin’s invasion of Ukraine. While pipeline flows of natural gas have dropped to record lows, LNG shipments from Moscow have surged. Both the Council and the Parliament noted how the agreement will also facilitate the uptake of renewable and low-carbon gases, including hydrogen, on the EU’s gas market.
Pay to phase out – EU regulators are set to approve a compensation package worth €2.6 bln for RWE from the German government, Bloomberg reports. This support is for RWE’s accelerated phaseout of coal from its energy systems and will be disbursed over 15 years, covering costs related to mine rehabilitation and closures. The approval, expected as early as Monday, follows a formal investigation that began in 2021. This arrangement stems from a 2020 agreement by the German government to ease the financial impact on companies transitioning away from coal by 2038. However, rising carbon prices in the EU have made coal less profitable and expedited the shift away from it. Germany’s regulator projects carbon permit prices to reach around €125 a tonne by 2030. In response to Europe’s severe energy crisis, RWE agreed last year to advance its coal exit to 2030, eight years ahead of schedule, while keeping two lignite units operational until Mar. 2024. This move is anticipated to reduce CO2 emissions by approximately 280 Mt. Additionally, RWE plans to invest €55 bln in green technologies by the end of this decade. The EU is yet to make a decision on a separate €1.75 bln billion subsidy for LEAG, Germany’s second-largest miner and a unit of Czech billionaire Daniel Kretinsky’s EPH. LEAG, which operates in the eastern parts of the country, is required to adhere to the 2038 coal phaseout timeline.
ASIA PACIFIC
More regulatory support – Energy experts have called on the Taiwanese government to work on a special hydrogen law, proposing building a hydrogen industry initially based on the development of blue hydrogen, according to Focus Taiwan. The best development strategy for the island before 2030 is to develop blue or low-carbon hydrogen as a bridging technology before moving onto the next stage, experts said. South Korea in 2021 passed the world’s first hydrogen law, while some countries in the APAC region including Australia and Japan tend to rely on existing regulations governing natural gas and high-pressure gases.
AMERICAS
Tackling beef emissions – Canada introduced a federal methane emissions offset protocol on Friday intending to reduce enteric methane output in confined beef cattle feeding operations through improved management, diet reformulation, the use of feed additives, growth promotors, or other strategies. Implementation of the Reducing Enteric Methane Emissions from Beef Cattle protocol will reduce the quantity of GHG emitted per unit mass of beef produced by improving animal performance or directly reducing enteric methane emissions. Improvements to animal performance may also result in decreased methane and nitrous oxide emissions from manure, reads the news release. A project undertaken under this protocol will generate GHG emission reductions for which federal offset credits may be issued under the Canadian Greenhouse Gas Offset Credit System Regulations.
Amazon avengers – US Senators Tim Kaine (D-VA), Marco Rubio (R-FL), and Jeff Merkley (D-OR) introduced a bill on Wednesday to provide US support for the Bralizian authorities to address organised criminal and drug trafficking in the Brazilian Amazon and promote regional stability across the Western Hemisphere. The Strengthening the Rule of Law in the Brazilian Amazon Act would direct the Secretary of State to prioritise supporting Brazil’s efforts to identify and disrupt transnational criminal networks committing environmental crimes, as well as assist local communities and vulnerable areas in the Brazilian Amazon, according to a press release.
Offset delays – The legislative bill regulating the carbon market in Brazil is facing delays in the Chamber of Deputies, and the government’s initial goal to approve it by the start of COP28 remained unmet. The states of Tocantins and Acre currently have operational carbon markets, but issues continue to arise concerning the transfer of carbon credits, including agreements with foreign companies. Private landowners engage in individual carbon credit projects, posing a challenge to jurisdictional markets that encroach on private lands. Legal disputes and concerns over the state’s claim on carbon credits from private properties have added complexity to the regulatory discussions, Jornal de Brasilia reported.
Big Easy – Zoetic Global, a US-based climate impact company, has partnered with the City of New Orleans through an MoU to support the city’s net zero carbon goals. This collaboration focuses on enhancing sustainability through carbon reduction and improving water and energy resilience. A key component of this initiative is the installation of energy-efficient refrigerants by Zoetic, designed to optimise cooling systems, reduce energy costs, and generate carbon credits. Moreover, Zoetic will evaluate the city’s water and power needs, potentially incorporating hydrogen generation technology. Zoetic has pledged to allocate 20% of the carbon credits from its technologies to programs benefiting New Orleans, particularly focusing on vulnerable communities and addressing energy, water, and food security. The City of New Orleans will facilitate collaboration and provide insights to maximise the impact of Zoetic’s solutions and carbon credit-funded programmes. The partnership also aligns with Zoetic’s endorsement of the Global Cooling Pledge, a commitment to reducing carbon emissions from cooling by at least 68% by 2050, a topic of discussion at COP28. This pledge addresses the growing issue of global warming and the subsequent rise in air conditioning usage.
INVESTMENT
Better measures – Man Group, an asset management firm, has established a partnership with the Columbia Center on Sustainable Investment (CCSI) to research and improve the measurement of climate impact in fixed income and equity portfolios. This collaboration aims to develop a more refined decarbonisation framework, focusing on identifying gaps in current methodologies and metrics related to tradable instruments. A key objective of this partnership is to establish a foundation for impact measurement across all asset classes, with a particular emphasis on high-emission sectors. This initiative addresses challenges posed by inconsistent definitions and measurements in the field, despite increased issuance of green bonds and investments in decarbonisation technologies. The CCSI, involved in this partnership, is a joint initiative of Columbia Law School and Columbia Climate School, bringing expertise in sustainable investment to the collaboration. (Citywire)
AND FINALLY…
Hey fellow kids – In September, rapper Killer Mike performed at a Kentucky music festival afterparty co-sponsored by Stand Together Music, backed by Charles Koch, a billionaire known for his investments in fossil fuels. According to the Guardian, this collaboration with Stand Together Music, part of a wider conservative advocacy network, raises concerns about the co-opting of artists into a political movement aimed at dismantling government regulation of polluting industries like Koch Industries. Stand Together Music, launched in 2022, lists partners like Machine Gun Kelly, the Chainsmokers, and Pitbull, suggesting a strategy to influence younger audiences and music fans. Critics argue that this aligns with Charles Koch’s broader political efforts, historically focused on fighting environmental regulations and shifting US politics to the right. Through donations and advocacy, Koch has been a major force in climate change denial and opposition to climate action, including pushing the Trump administration to withdraw from the Paris Agreement. Despite recent efforts to support bipartisan social causes, critics view the broader Stand Together network, including its music arm, as part of a strategy to weaken government ability to address climate change. The network’s involvement in music and other social sectors is seen as a means to extend its influence, using popular culture to endorse its political and environmental agendas, often in conflict with efforts to combat climate change.
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
