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COP28
UN carbon trade talks on cusp of breaking down amid “carnage” in Dubai, crediting text barely recognises methodological work
UN talks on carbon markets under Article 6 of the Paris Agreement were said to be one step away from collapse late on Monday, as “carnage” in rooms negotiating rules for international trading has also hindered progress in those concerning crediting, sources told Carbon Pulse, with language in a draft text barely recognising experts’ work done on methodologies over the past year.
Latest stocktake draft “a disaster”, omits language on fossil fuel phaseout
A new negotiating text on the first ever Global Stocktake (GST) of the Paris Agreement dropped on Monday evening at the COP28 climate summit in Dubai, urging nations to cut their fossil fuel consumption and production by mid-century while omitting any reference to phasing them out.
Turkish ETS won’t be open to speculators initially and will feature a rising emissions cap -official
The Turkish ETS will not initially be open to non-compliance players and will feature a rising emissions cap rather than a decreasing one, the head of the government’s carbon pricing department told Carbon Pulse on the sidelines of COP28 in Dubai.
Verra, Gold Standard team up with Singapore to develop Paris Agreement playbook
Voluntary market certifiers Gold Standard and Verra have partnered with Singapore to develop a playbook for standard operating procedures for countries active in the Paris-era carbon market, they announced Monday.
Singapore adds two more nations to stable of Article 6 partners
A busy Singaporean delegation at COP28 in Dubai has secured two more bilateral carbon trading framework agreements to pave the way for purchasing units aligned with Article 6.2 of the Paris Agreement.
US developer, African Union agency eye huge landscape restoration projects
A US project developer and the African Union Development Agency (AUDA) have penned partnerships with two African countries that call for millions of hectares of land to be restored, with as much as 3 billion tonnes of CO2 to be sequestered over the next half century.
INTERVIEW – All eyes on Canada’s oil and gas sector under forthcoming cap-and-trade scheme
Canada’s environment minister, soon responsible for a federal cap-and-trade system regulating the emissions of its oil and gas industry, unpacked his climate goals for the country’s economy in an interview with Carbon Pulse at COP28 while saying he did not expect countries to agree to a “pure phaseout” of fossil fuels during negotiations in Dubai.
Rich nations’ fossil fuel phaseout language weak and hypocritical, say NGOs
The UN Umbrella Group of rich nations, including the US, UK, and Australia, says it supports a phaseout of unabated fossil fuels in energy systems by 2050, but members of civil society have argued this language it too weak and inconsistent with their own domestic energy policies.
Australia picks more projects under blue carbon initiative
Australia on Monday announced it will distribute more than A$3 million ($2 mln) in grants to four projects for conservation of marine ecosystems under the Blue Carbon Accelerator Fund (BCAF) it administers in partnership with IUCN.
Article 6 must remove ‘fear of entry’ to channel carbon finance for transformational change, market urges
Market actors urged for clarity on Article 6 as COP28 draws to a close, citing the potential to improve trust in carbon markets by removing the ‘fear of entry’ for buyers currently hesitant to engage in credit-buying due to the risk of reputational damage linked to greenwashing.
Chile signs Article 6 agreement with Switzerland, as Thailand ITMO payment not expected during COP
Chile has signed an implementation agreement with Switzerland under Article 6 of the Paris Agreement, as it crafts domestic frameworks and consults with local stakeholders in preparation for the global carbon market, an official told a side event at COP28.
Amazon could be the driver of decarbonisation and new economy in Brazil, report says
A series of several ambitious, but achievable, changes could transform Brazil’s climate and economy, but more robust efforts are needed, attendees heard from an expert panel discussion on the launch of a report at COP28 Monday.
CCS for ‘hard-to-abate’ sectors seen as red herring in the fight to wind down oil and gas at COP28
Carbon capture and storage (CCS) is nothing more than a fig leaf designed to keep fossil fuel industries booming and polluting according to a panel on the sidelines of COP28 in Dubai.
Roundup for Day 12 – Dec. 11
It is Day 12 at COP28 and negotiations are under crunch time to find areas of agreement across key texts, including on the Global Stocktake (GST) and Article 6. Carbon Pulse’s team of correspondents continue to chase after news on the ground from the latest texts and sources. In our daily running blog, we will report relevant or useful updates throughout the day. Timestamps are in local time (Gulf Standard Time, GMT+4).
EMEA
Euro Markets: Weak gas and power markets continue to pile pressure on carbon as option expiry looms
European carbon prices came under yet more pressure on Monday as natural gas dropped sharply amid forecasts for average seasonal temperatures and storage levels remained high, before stabilising and settling at their lowest level in nearly 14 months, while traders anticipated this week’s expiry of the December options contract.
UK energy-from-waste firm plans £800 million carbon capture and removals project
UK energy-from-waste company enfinium said on Monday that it plans to invest up to £800 million in CCS technology, creating what it says would be one of the largest carbon removal projects in Europe.
EU plans to announce 2040 climate target and carbon management proposals in February -media
The European Commission plans to release in February its proposal for the bloc’s 2040 emissions target along with a communication on industrial carbon management, the EU’s executive reportedly outlined on Monday.
AMERICAS
RGGI Markets: RGAs extend to new year highs on record auction print
RGGI Allowance (RGA) values soared to new year-to-date (YtD) highs with a step up in secondary market volumes traded through a mid-week Q4 auction that triggered additional sale volume.
Washington updates proposed cap-and-invest legislation with eye on linkage
Pursuant to a draft request for amended legislation to facilitate linkage with California and Quebec’s carbon market, Washington’s Department of Ecology (ECY) proposed on Monday a slew of further updates to its cap-and-invest rulemaking.
DOE funds US DAC technology that could scale to 1 mln tonnes annually
A US direct air capture (DAC) technology firm announced Monday that it had used Department of Energy funding to design a system with the potential to capture 1 million tonnes of carbon dioxide per year.
US organisations call for adjustments on existing federal carbon management tax credit
More than 50 institutions on Monday called on the US Congress to make amendments to the federal CO2 sequestration tax credit in upcoming legislative proposals.
Massachusetts’ proposed Clean Heat Standard draft framework faces pushback from propane suppliers
Several stakeholders joined the Massachusetts Department of Environmental Protection’s (DEP) community meeting on the draft Clean Heat Standard (CHS) to condemn compliance obligations for propane suppliers.
US Department of the Interior advances nature-based solutions to combat climate change
The US Department of the Interior has announced new initiatives to employ nature-based solutions through strategies designed to preserve biodiversity, enhance resilience against natural disasters, and support climate adaptation.
VOLUNTARY
Scientists call for retraction of study that questioned REDD projects
A group of scientists has called for a retraction of research published earlier this year that called into question the climate impact of some REDD forest protection projects, saying it contained “major flaws.”
VCM Report: Bargain hunting starts to slow trade before end of the year
Bargain hunting dominated the voluntary carbon market (VCM) last week where activity started to slow down for the year, despite the emergence of the first correspondingly adjusted credits that are expected to create a new tier of trading.
European countries issue joint recommendations to support voluntary carbon buyer-side integrity
The governments of the Netherlands, Germany, France, Spain, Finland, and Austria issued a joint statement on Sunday issuing recommendations to carbon credit buyers on the voluntary carbon market (VCM).
Carbon project developers wary of “unfair” scrutiny by raters
Carbon credit rating agencies risk undermining financial flows by grading projects in a fragmented and retroactive way, developers have outlined in a paper that takes aim at the companies that have judged much of their work as poor in recent years.
Carbon exchange secures partnership for new marketplace in Brazil
Singapore-headquartered carbon marketplace operator ACX has teamed up with a major stock exchange operator in Latin America, as it is preparing to unveil a trading platform for the Brazilian market next year.
Puro.earth’s carbon removals standard proposes changes to align with ICVCM and CORSIA
Puro.earth’s carbon removals standard has proposed changes to enable it to gain the ICVCM’s CCP integrity label and be eligible for use in the CORSIA international aviation offsetting scheme.
ASIA PACIFIC
Taiwan govt-backed carbon exchange to list international credits by year-end
A carbon exchange backed by the Taiwanese government will offer trade in international carbon credits by the end of this year, though lingering policy uncertainty could limit domestic buying interest.
BIODIVERSITY (FREE TO READ)
Plan Vivo launches biodiversity certificates methodology with new habitat metric
A standard for verifying biodiversity certificates, said to be the first of its kind, has been launched by certifier Plan Vivo with the addition of a new habitat metric.
Mirova invests in biodiversity credit developer, plans new $350 mln sustainable land strategy
Investment manager Mirova has invested in a Colombia-based developer of biodiversity credits as part of the final deployment of its Land Degradation Neutrality (LDN) strategy, while at the same time announcing plans to raise $350 million for a new sustainable land management strategy.
Over 30 countries back global initiative to protect, restore freshwater
More than 30 countries announced this weekend they had joined the Freshwater Challenge, meaning nations home to around a third of global freshwater resources now have joined the efforts to protect and restore the world’s rivers, lakes, and wetlands.
Nations to review debt interplay with nature, climate
Colombia, Kenya, and France on Monday said they will launch an expert review of the relationship between, debt, nature loss, and climate change in a bid to better position nations to solve the three major crises.
ICYM
ANALYSIS – Egypt launches integrated voluntary carbon market, as observers flag potential conflict of interest
Egypt’s “pan-African” voluntary carbon marketplace was formally launched at COP28, though ‘conflict of interest’ concerns have been raised as one wealthy family has apparent links to virtually every organisation involved in the country’s nascent market.
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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
Challenge accepted – The Canadian government on Sunday showcased the independent Secretariat of the Global Carbon Pricing Challenge (GCPC) and revealed the Challenge’s new website to “highlight how nations can raise the bar on their climate ambitions.” The GCPC is a Canada-led initiative launched at COP26 with the aim to increase global emissions covered by carbon pollution pricing to 60% by 2030. Several countries across continents have joined the initiative, with Sweden and the European Union recently adding to the list of its members. Canada will work in collaboration with two organisations – Adelphi Research and the International Emissions Trading Association (IETA) – to form the GCPC Secretariat.
Staying in – Argentina under incoming President Javier Milei will remain part of the Paris Agreement on climate change, the country’s new top climate diplomat told Reuters on Sunday, despite the leader’s past comments that global warming is a hoax. Veteran climate diplomat Marcia Levaggi said that she has the full support of the new government, which sent her as head of the Argentinian delegation at the United Nations COP28 climate talks underway in Dubai.
Sustainable banking – UAE’s bank Emirates NBD has partnered with Microsoft to implement Microsoft Sustainability Manager, a Microsoft Cloud for Sustainability solution. The platform compiles data intelligence and provides “comprehensive, integrated, and automated” sustainability management to companies at various stages of implementing sustainable practices, and will enable organisations to report and reduce their emissions as well as water and waste impact. (CIO)
EMEA
Stoves in droves – The Africa Go Green Fund, managed by Cygnum Capital, has agreed to invest $10 mln for efficient cookstove distribution in Mozambique, Nigeria, and the DRC. The investment will fund the manufacturing and distribution of efficient cookstoves produced by Burn Manufacturing. AGG’s investment will result in the distribution of improved cooking solutions to between 50,000-150,000 customers in each of the three nations and is expected to reduce approximately 6.9 MtCO2e of emissions over the project’s life.
ASIA PACIFIC
New partnership – Japanese project developer Bywill on Monday announced it had signed an agreement with Mitsui Sumitomo Insurance and the government of Tokyo’s Edogawa area to help promote decarbonisation efforts among small- and medium-sized enterprises in the region. Under the agreement, Bywill will be responsible for arranging seminars related to the operation of the J-Credit programme and supporting the creation of domestically issued carbon credits. The alliance is targeting to launch a J-Credit project with the participation of both businesses and households in Edogawa within 2024, according to the statement.
AMERICAS
Ferry ride – Washington Representative Jim Walsh (R) has prefiled a bill to use the Climate Commitment Act (CCA) revenues to pay for costs related to building hybrid electric ferries and their associated infrastructure. While the bill’s opening calls for CCA to pay for all of the associated costs, the actual provisions do not specify the amount of revenue that CCA must provide the Department of Transportation for such developments.
P-NEW-matics – Alberta’s environment ministry published on Monday an updated 3.0 version of its Quantification Protocol for GHG reductions from Pneumatic devices to be used under the province’s Emissions Offset System. All emissions reductions under the pneumatic devices methodology on or after Jan. 1, 2023 would have to use the new methodology, while the older 2.1 version would be allowed to quantify emissions reductions up to and including projects till Dec. 31, 2022.
Pour it up – The Wyoming Energy Authority recommended Governor Mark Gordon (R) to award a combined $37.5 mln for six energy projects, which would require Gordon to tap into $150 mln set aside for him to spend at his discretion. Wyoming utility Black Hills Energy and natural gas pipeline giant Williams Companies are among the private firms to potentially receive the state matching funds. The state’s investment would leverage a total $120 mln in federal and private funding, according to the energy agency.
VOLUNTARY
Stacking structure – Bank Citigroup is exploring entirely new deal structures it says have the potential to entice risk-averse investors to carbon credits, according to Jay Collins, vice chairman of banking, capital markets and advisory at Citi, who said initiatives announced at COP28 are paving the way for banks like Citi to start constructing such deals. Collins said carbon credits have the potential to become “one of the tools” in so-called blended finance models, whereby private investors are offered assurances they will be spared any initial losses as an incentive to get them to join higher-risk deals. (Bloomberg)
Fashion funding – Financial services company HSBC has joined Apparel Impact Institute (Aii)’s Fashion Climate Fund (FCF) as a new philanthropic funder and pledged an initial amount of $4 mln along with trade finance expertise over the next three years. The FCF is a $250 mln project aimed at driving industry-wide convergence to modernise apparel and footwear supply chains to meet the industry’s ambition to halve carbon emissions by 2030. (Just Style)
SCIENCE & TECH
Biochar boon – Some 76% of 64 studied biochar samples in Europe qualify as pure inertinite, a very stable form of carbon, according to a peer-reviewed study published in the International Journal of Coal Geology by academics from Aarhus University and the Geological Survey of Denmark. The findings could bolster the case that biochar projects can permanently remove CO2 from the atmosphere.
AND FINALLY…
Chum bucket – Oceans can store more CO2 from the air than scientists previously thought, thanks to plankton that eat the GHGs and turn them into organic material through photosynthesis as they grow. according to a new study published in the journal Nature. When plankton die, some of them turn into particles called “marine snow” that sink to the ocean floor, storing carbon there and supplying important nutrients for various deep-sea creatures, ranging from small bacteria to deep-sea fish. The study analysed data to create a digital map showing how such organic matter moves throughout the oceans, and estimated that the ocean can store 15 bln tonnes of carbon per year – some 20% more than what the IPCC reported in 2021 at 11 bln tonnes annually. Perhaps Plankton couldn’t compete with Krusty Krab because his hands were full absorbing the rising emissions? (Global Seafood Alliance)
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