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 STORIES
Global Stocktake avoids fossil fuel phaseout language in historic final text
A final negotiating text on the first ever Global Stocktake (GST) of the Paris Agreement was agreed by countries at COP28 early Wednesday, urging a “transition away from fossil fuels in an equitable manner” but crucially avoiding the stronger ‘phaseout’ language seen in earlier versions.
Reactions to the UAE Consensus on Global Stocktake, other outcomes in Dubai
Here are selected party, stakeholder, and expert reactions to the UAE Consensus on the Global Stocktake (GST) and other outcomes at COP28 climate summit in Dubai, which wrapped up Wednesday.
FEATURE – The voluntary carbon market vouches for a better year ahead
Voluntary carbon market (VCM) proponents are pressed to bring integrity to the ecosystem with new tools outlined across multiple events on the sidelines of the COP28 UN climate summit, but the collapse of negotiations on international emissions trade in Dubai may hinder efforts to converge markets.
EMEA
Germany set to cut climate spending by €45 billion, hike carbon pricing to balance budget
Germany is set to spend billions less than planned on climate and energy transition projects each year to 2027, in order to balance the government budget following a court ruling.
Euro Markets: Carbon climbs back up to €70 ahead of options expiry, before fading
EUAs touched €70 early on Wednesday as data showed the highest ever net short position for funds last week, but prices then eased back as the hotly-anticipated quarterly options expiry passed without fireworks.
German DAC startup raises seed funding for technology that runs off waste industrial heat
A German cleantech start up has raised €3.2 million in seed funding for its direct air capture (DAC) technology that can be retrofitted to existing cooling towers and waste heat pumps of ETS-covered industrial facilities, keeping onsite development and running costs low.
BNP Paribas launches fund to finance climate change mitigation
BNP Paribas Asset Management said on Wednesday that it has launched a new fund designed to finance energy transition projects across Europe.
AMERICAS
Washington Q4 carbon auction settles below APCR Tier 1
The auction of December current vintage units for Washington’s WCI-modelled cap-and-invest programme sold out just under the Allowance Price Containment Reserve (APCR) Tier 1 price, while the second advance sale settled much lower, according to results published Wednesday.
California ARB offset issuance bolts higher at tail end of 2023
California boosted the issuance of compliance-grade offsets since the prior distribution in November, but none of the credits were tagged with direct environmental benefits to the state (DEBs) this time round, according to data published by the state regulator ARB on Wednesday.
US DOE launches third phase of $2.25 bln funding for CO2 transport and storage
The US Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) is looking to advance infrastructure for transport and storage of CO2 from industrial and power generation sources in pursuit of federal climate goals.
ASIA PACIFIC
South Korea revamps current allowance allocation plan for domestic ETS
The government of South Korea has made official revisions to the allowance allocation plan for the domestic carbon market during the current phase (2021-25) to reflect the country’s new emissions reduction targets and improve liquidity.
SK Markets: Korean monthly auction fails again to sell as demand remains weak
South Korea’s latest monthly CO2 auction again sold only a limited share of the permits on offer, as the market continues to struggle with lukewarm demand amid policy uncertainties.
INTERNATIONAL
Bolivia signs MoU with global carbon standard to expand knowledge on carbon markets
Bolivia has signed a memorandum of understanding (MoU) with a global carbon standard to educate stakeholders and share knowledge about the nation’s carbon market activity.
Carbon capture firm partners with four more cement-makers to accelerate industry decarbonisation
A Belfast-based carbon capture firm on Wednesday announced partnerships with four more cement manufacturers aimed at expediting the implementation of this nascent technology within their operations.
VOLUNTARY
Study reveals significant variability, uncertainty in avoided deforestation crediting baselines
Researchers evaluating the robustness of carbon credit baselines for jurisdictional-scale avoided deforestation projects have exposed serious challenges in their accuracy and consistency, according to a new study.
Carbon removals registry unveils methodology for geological storage
Startup registry Isometric said on Wednesday that it has developed a new protocol for permanent carbon removal using bio-oil geological storage, and plans to unveil three more protocols over the next three months.
BIODIVERSITY (FREE TO READ)
Marine biodiversity credits framework launched by non-profit
A methodology that aims to enable governments to generate marine biodiversity credits from protected areas has been launched by California-headquartered non-profit OpenEarth.
MSCI: Nature investments to attract billions in 2024 following metrics progress
Improvements in metrics are likely to entice billions of dollars in nature investments across biodiversity, carbon, and water over 2024, an executive at MSCI has said.
African projects earn accelerator status, eye biodiversity credits
The first African biodiversity accelerator has picked two initial winners, both forestry projects in the process of exploring options in the biodiversity credit market.
ICYM
Countries reject key Article 6 texts in a major setback for carbon 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.
—————————————————
Premium job listings
- Senior Advisor, REDD+, Fauna & Flora International – Cambridge, UK
- 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
INTERNATIONAL
Swiss on a roll – The Klik Foundation, the carbon offset body for Swiss fuel importers, is seeking proposals from project developers in Chile and Tunisia after Switzerland struck bilateral agreements with these countries at COP28 under Article 6 of the Paris Agreement. Activities in the areas of biogas, e-mobility, green cooling, bioethanol, battery storage, organic waste, wastewater, and waste to energy are particularly welcome in Chile. Klik intends to raise the domestic fuel levy charged to fuel distributors to 8 cents per litre next year, up from the current 5 cents, to buy more correspondingly-adjusted foreign carbon credits, with the increase expected to result in an additional income of $1.22 bln over 2024-30 to take the total income to almost $3.32 bln.
ASIA PACIFIC
Ammonia project – South Korea’s Samsung C&T Corp has formed a consortium with Japan’s Marubeni and Oman’s state-owned energy enterprise OQ for a green ammonia project in the Salalah Free Zone, a southern port city in Oman, the Korea Economic Daily reports. The companies said they are gearing up to commence construction of the new facility in 2027, with production likely starting in 2030. The project will be capable of producing 1 mln tonnes of green ammonia annually.
Hydrogen plant – Oil giant Saudi Aramco plans to build a pilot plant in China to convert ammonia into hydrogen through collaboration with a local partner, as part of the oil producer’s plan to facilitate sustainability-related research and development, according to the South China Morning Post. The Guangdong-based facility, to be completed this month, will have the capacity to produce 200 kilograms of hydrogen daily, the report said.
AMERICAS
SAF guidance – The US Treasury Department will release guidance on sustainable aviation fuel (SAF) tax credits this week, Reuters reported, delivering conclusions on an issue that has long-divided the Biden administration. The guidance was initially expected in September. Stakeholders have lobbied the federal government extensively, as ethanol producers see SAF as one of the only methods of growing their industry.
Carbon price exemption – Bill C-234, a carbon price exemption bill that would remove the pollution fee from farm facility heating, has passed in the Canadian Senate and will now return to the House of Commons where it awaits final approval before Royal Assent to become law. The bill was introduced by Conservative Member of Parliament (MP) Ben Lobb in Feb. 2022 and was amended twice to remove barns and greenhouses from the carbon pricing exemption clause and to shorten the sunset period of the exemption for propane and natural gas used in grain drying from eight years to three.
Municipal emissions reductions – Seattle City Council unanimously passed legislation to enact the Building Emissions Performance Standard, which will reduce greenhouse gas emissions from existing buildings, currently accounting for 37 percent of Seattle’s total core emissions. The legislation requires owners of existing buildings larger than 20,000 square feet to take steps to incrementally reduce those building’s greenhouse gas emissions.
SCIENCE & TECH
Spoiled trees – Scientists at UC Santa Barbara and UC Davis have learned that trees growing in wetter regions are more sensitive to drought, heightening their vulnerability to climate change, according to research published in peer-reviewed journal Science. “That’s really critical to understand when we’re thinking about the global vulnerability of forest carbon stocks and forest health,” said ecologist Joan Dudney, co-author of the study. “You don’t want to be a ‘spoiled’ tree when facing a major drought.”
AND FINALLY…
Ollies abound – A drought led to the rise of professional skateboarding in southern California in the 1970s, according to a cross-disiplinary study from the University of Cambridge, published in peer-reviewed journal PNAS Nexus. The authors claimed that professional skateboarding could not have started anywhere else, at any other point in time – the post-war prosperity brought the construction of thousands of pools per year, and as the California drought took hold in the 1970s, empty pools became playgrounds for freestyle skateboarders. Coupled with the influence of surf culture and improved equipment thanks to industrial production of polyurethane, major skateboard media and companies were founded in the late 1970s. “We often look into the past to make associations between climate and society, but as we go further back in time, the evidence for those associations gets thinner,” said lead author Professor Ulf Büntgen from Cambridge’s department of geography. “We wanted to find a more modern example that can show how climate affects human behaviour, where we had lots of data to look at, which is how we ended up studying skateboarding.”
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
