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COP28

Countries reject key Article 6 texts in a major setback for markets under the Paris Agreement

Country negotiators have failed to adopt two key texts on carbon crediting methodologies and international trade on the final scheduled day of COP28, throwing the future of markets as a climate solution under the Paris Agreement into turmoil.

ANALYSIS – Singapore, VCM stakeholders grapple with increasing number of Article 6 agreements

Singapore’s environment minister has emphasised the importance of standards in drawing up Article 6 implementation agreements with host countries, as voluntary standards and market stakeholders try to figure out how these agreements will work on the ground, particularly in developing nations with weak governance and capacity issues.

FEATURE – Voluntary carbon stakeholders hope jurisdictional REDD+ can command higher prices, appease governments

A new wave of jurisdictional REDD+ (J-REDD+) projects, many announced at COP28, hope to bring together the private sector and governments, by commanding higher prices for ‘high-integrity’ carbon credits in a pivot away from a project-based approach.

First-ever Article 6.2 issuance raises additionality concerns as ITMO transfer looms, say NGOs

An Article 6.2 deal between Switzerland and Thailand that had achieved the world’s first issuance of ‘internationally transferred mitigation outcomes’ (ITMOs) may not involve additional emissions reductions, according to an NGO report this week.

Project makes milestone progress towards storing CO2 from world’s largest single-source emitter

Pioneering efforts to store carbon from an industrial emitter base in South Africa, including from the world’s largest single-source CO2 emitter, are set to progress to pilot construction stage following completion of the geological assessment of the local area.

Organisations launch carbon data dashboard with integration from major registries

A Singapore-based initiative, which seeks to promote integrity and transparency of publicly available information in the carbon market, will incorporate data from four major carbon market standards into its public dashboard, the organisation announced at COP28.

Carbon credits to take central role in energy transition through new initiatives

A form of carbon credit centered around funding the green energy transition in emerging economies took on newfound importance at COP28 in Dubai with the launch of multiple initiatives on the sidelines of the climate conference.

NZ’s new climate minister highlights agricultural industry’s importance in national statement

New Zealand’s newly appointed Minister for Climate Change has emphasised the importance of the country’s agricultural sector – the biggest contributor to the country’s GHG emissions – and a stable Emissions Trading Scheme, in his first national statement to COP28 in Dubai.

Drill baby, drill: Brazil joins OPEC+, argues for climate cooperation, offers 900 new oil blocks

Brazil will open the largest oil and gas block auction in its history on Tuesday, a move campaigners find highly hypocritical as the COP28 summit negotiations struggle to agree on phasing out fossil fuels globally even as the South American nation touts its climate leadership.

INTERVIEW – Paris Agreement market mechanisms will not resolve climate crisis, says Sri Lankan negotiator

Market mechanisms under Article 6 of the Paris Agreement are not a solution to fight climate change, said an official from Sri Lanka’s environment ministry, adding that developed countries must phase out their fossil fuel usage in order to resolve the crisis.

Australia, UK partner on hydrogen funding initiative

Australia and the UK have committed £10.5 million ($13.1 mln) to initiatives for companies to research, develop, and launch renewable hydrogen projects focusing on the industrial and transport sectors, they announced Tuesday.

Norway pledges $50 mln for Brazil Amazon Fund

Norway has pledged to donate $50 million to Brazil’s Amazon Fund to help conserve the rainforest region, its first contribution since 2019.

Roundup for Day 13 – Dec. 12

It is Day 13 of COP28 – the final day, and parties are still far from consensus on the global stocktake (GST), Article 6 negotiations, adaptation, and virtually every issue on the table here in Dubai. In our daily blog, we will report relevant or useful updates throughout the day.

EMEA

EU votes to adopt critical raw materials act as part of its green deal

The EU formally adopted its Critical Raw Materials Act on Tuesday after a vote by MEPs, as the bloc attempts to shore up domestic production of the materials that will be needed for the transition to clean energy.

Euro Markets: Carbon shrugs off energy decline, rallies ahead of EUAA sale and options expiry

European carbon ignored weakness across the energy complex on Tuesday, with prices advancing steadily through the afternoon as traders looked ahead to a much smaller EUAA auction on Wednesday as well as the expiry of the December options contract.

EU’s largest arable farm signs up to soil carbon project

The EU’s largest arable farm has signed up to a soil carbon programme that now spans two million hectares across 17 European countries.

Unilever investigated over greenwashing claims by UK watchdog

Unilever, one of the world’s largest consumer good companies, is being investigated for greenwashing by the UK’s competition watchdog amid a crackdown on corporates making bogus climate friendly claims.

US data marketplace signs African forest protection lease worth +100 mln carbon credits

A climate technology firm backed by a US billionaire investor announced Tuesday the signing of an agreement to preserve hundreds of thousands of hectares of an African nation’s vast rainforests and peatlands in exchange for conservation credits.

AMERICAS

Texas seeks proposals for funding in nature-based projects

Texas Parks and Wildlife Department (TPWD) has begun solicitation of proposals from public and private entities for nature-based carbon sequestration initiatives, the agency announced Tuesday.

US academia map gigatonne CDR potential

Researchers from more than a dozen US institutions have completed a first-of-its-kind assessment of national carbon dioxide removal (CDR) opportunities required to achieve a net zero economy by 2050.

ASIA PACIFIC

South Korea signs REDD+ MoU with Laos

South Korea has signed a memorandum of understanding (MoU) with Laos to strengthen their cooperation on REDD+ forest protection projects, as Seoul has committed to securing more international carbon credits in the next few years for its climate goals.

VOLUNTARY

Russia’s Sibur looks to sell 18,000 carbon credits on GCC registry

Russian petrochemical company Sibur plans to enter the global carbon credit market after registering a solar project for certification with the Qatar-based Global Carbon Council (GCC).

New exchange Abaxx plans to launch carbon futures in January

Singapore-based Abaxx Commodity Futures Exchange and Clearinghouse plans to launch two physically-settled carbon futures in January after being granted licenses by the Singaporean authorities, company representatives have revealed to Carbon Pulse.

BIODIVERSITY (FREE TO READ)

UK announces next wave of plans for marine net gain

The UK government is commissioning the evidence it needs to take its marine net gain (MNG) proposals to the next stage, following a consultation.

Colombia applies to host COP16 biodiversity conference

Colombia has officially announced its interest in hosting the COP16 UN biodiversity conference next year, with onlookers welcoming the move.

Biodiversity Pulse: Tuesday December 12, 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).

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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

Airline levy – Imposing a small levy on the cost of airline tickets for frequent flyers in order to help fund the impacts of climate change faced by developing nations is unlikely to occur, said UK International Development Minister Andrew Mitchell, speaking to the Guardian at COP28. The prospect is one of several ideas put forward by developing countries as a way of raising cash for the loss and damage fund. Just $700 mln has been pledged to the fund so far, while the needs of developing countries are likely to stretch into the hundreds of billions a year, meaning that new sources of funding drawn from the public purses of developed nations will need to be found. An airline levy is unlikely to gain support from the British government, said Mitchell.

EMEA

Tusk back in – The Polish parliament has given former prime minister Donald Tusk a mandate to form a new coalition government, the BBC reports. This marks the end of the eight-year rule of the right-wing nationalist Law and Justice (PiS party). Donald Tusk’s new government is likely to have a better relationship with the EU than the previous PiS government, and have a slightly more ambitious climate policy. However, during its campaign, the Donald Tusk’s coalition party did not outright commit to a coal phase-out, leading some experts to doubt whether the new government’s climate policy will be that ambitious.

Nuclear fusion – France’s president Emmanuel Macron said he will aim for new investments in nuclear fusion, natural hydrogen, energy storage, and carbon capture during a speech held at the premises of European aviation giant Airbus in Toulouse on Monday, Euractiv reports. He further stressed the importance of expanding energy storage to better manage the flexibility of the electricity system. Macron also announced the deployment of funding to explore the potential of natural hydrogen, which is found beneath the earth’s surface.

ASIA PACIFIC

Not enough coal – China is aiming to build up a backup production system that can mobilise 300 mln metric tons of coal a year, equivalent to 7% of its 2022 production, by the end of this decade to ensure energy security, Caixin reports. The country’s major coal mining companies have been asked to step up construction of reserve production capacities to “ensure the elasticity of future coal supply and reduce coal price fluctuations,” according to draft guidelines released by the National Development and Reform Commission (NDRC), the country’s top policy planner.

AMERICAS

Investing CCA dollars – Washington Governor Jay Inslee (D) on Monday unveiled his 2024 climate agenda to advance the state’s ongoing action to protect residents from climate change and create clean energy jobs. Inslee highlighted three policy proposals aimed at oil company accountability, strengthening the state’s cap-and-trade programme, and phasing out methane gas. He also previewed how new Climate Commitment Act (CCA) funds will be put to work in neighborhoods and communities across Washington. Inslee plans to reveal his proposal for the use of new CCA revenue to grow clean energy businesses and jobs, reduce pollution, cut down GHG emissions, and help 750,000 households cut down on energy costs with a $200 utility bill credit.

Fusion bill – Washington Representative Clyde Shavers (D) prefiled a bill that would mandate the Interagency Clean Energy Siting Coordinating Council’s annual report to include a recommendation on the suitability and timing for fusion energy to be an appropriate category to develop a nonproject environmental impact statement. The bill also aims to add fusion energy facilities, or facilities manufacturing or assembling component parts for such energy, to the list of projects of statewide significance that are supposed to get expedited permitting and reviews in order to be completed sooner.

Transparent transportation – Senator Drew MacEwen (R) prefiled a bill to authorise the Washington Utilities and Transport Commission (UTC) to consider approving tariff schedules that contain rates or charges requested by utilities to recover their costs for implementing requirements of the Climate Commitment Act. If approved, UTC would require utilities to include any corresponding rate increase or charge as a line item on each customer’s bill.

Planting pines – US conservation organisation, American Forest Foundation (AFF) announced on Tuesday that it had received $465,000 in philanthropic funding from non-profit Arbor Day Foundation towards Field to Forest, a pilot afforestation project in Georgia. The programme assists landowners in transitioning marginally productive or difficult-to-manage cropland and pastureland to managed pine forest, the press release noted. Funding will serve AFF’s purchase, preparation, and planting of pine seedlings on 3,000 acres (1,200 ha) of degraded agricultural land in Georgia. Planting is expected to begin in Jan. 2024. Georgia landowners with 40 acres of privately owned “open land”, including pasture or cropland, are eligible to enroll in the pilot programme.

Clean energy workforce – New York Governor Kathy Hochul announced a package of $45 million towards the Apprenticeship and Pre-Apprenticeship Clean Energy Training Initiative, in a press release on Tuesday. The initiative will offer training as a pathway to clean energy careers, with $15 mln available to support projects that develop a diverse and inclusive pipeline of skilled talent to meet projected workforce needs in a variety of clean energy sectors, and is part of the state’s goal to ensure at least 35% to 40% of clean energy investments were directed to disadvantaged communities. New York State Energy Research and Development Authority (NYSERDA) will administer the three-year funding opportunity, accepting applications requesting up to $750,000 per project with an additional $150,000 available for projects that include K-12 career awareness and outreach promoting clean energy jobs. At least 50% of participating schools or afterschool/summer programmes must be located in disadvantaged communities or serve a majority of students from these communities, the release outlined. Proposed projects must prepare pre-apprentices, apprentices, and journey workers for employment in at least one of the following clean energy technology areas: building electrification and energy efficiency technologies; renewable energy generation, interconnection, transmission, distribution, and storage; and electric vehicle charging station installation and repair, the statement noted.

Taxing pesos – The Mexican state of San Luis Potosi will put a green tax to vote in the state congress on Dec. 14, after the Congressional Finance Commission approved with a 4-1 vote in favour of creation of the green tax, local outlet El Sol de San Luis reported Tuesday. The tax is expected to collect 19.5 mln pesos in its first year of implementation according to Ministry of Finance estimates, with a fee of 3 UMA per emitted tonne of CO2.

AND FINALLY…

Myron gone – Myron Ebell, a prominent climate change denier, has retired from his position as the director of Competitive Enterprise Institute’s Center for Energy and Environment, E&E reports. Labelled “a superstar of the Denialosphere”, Ebell has a long history of opposing climate initiatives, including blocking carbon cap-and-trade legislation and influencing former US President Donald Trump’s decision to withdraw from the Paris Agreement. The 70-year-old cited a decline in energy levels, attributed partly to aging and alleged side effects from COVID-19 vaccines, as his reason for stepping down. Ebell’s climate policy rivals reflected on his career following the announcement, acknowledging that his role in jeopardising efforts to address the climate crisis is undeniable. “I hope he finds a nice piece of property at sea level for his retirement,” remarked Jeremy Symons, an environmental communications adviser who often clashed with Ebell.

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