**CP Daily will not be published between Dec. 23 and Jan. 1. Carbon Pulse will file stories and send out CP Alerts on merit during that period. Regular coverage will resume Jan. 2.**

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TOP STORY

ICVCM to aim for regular flow of CCP carbon credit assessments over 2024

The ICVCM will hold board meetings at least once a month and post regular notices of upcoming activity from January to try to keep a regular flow of decisions on whether carbon credit categories are eligible for its Core Carbon Principle (CCP) labelling, board chair Annette Nazareth and interim chief operating officer Amy Merrill told Carbon Pulse.

INTERNATIONAL

Business leader lays blame for UN’s Article 6 talks collapse firmly with EU

The head of carbon trading business group IETA blames the EU for this week’s collapse of COP28 UN climate talks on Article 6 emissions trade, though expects such approaches to continue to develop apace within smaller groups of nations.

Global coal use hit 2023 record but will decline out to 2026 -report

Coal use hit a record high last year after several years of Covid- dampened demand, largely driven by three Asian economies and to a lesser extent Europe, according to a report published on Friday that predicted a further record this year before demand dips and then plateaus to 2026.

EMEA

Euro Markets: EUAs give up midday gains as sellers return, while traders roll positions into Dec-24 contract

European carbon prices came under pressure once again on Friday afternoon as short-positioned traders found little resistance through to the settlement window and many participants continued to roll Dec-23 positions into the next-year’s contract, while energy markets weakened for a second consecutive day on mild weather and higher renewable output.

EU candidates call on Brussels to help them assess carbon pricing options

Energy ministers from EU candidate nations have called on Brussels to set out their potential carbon pricing options as they scramble to establish policies that can mitigate the impact of the EU’s carbon border adjustment mechanism (CBAM).

Carbon standard signs MoU with African country alliance amid Article 6 uncertainty

A carbon credit certifier has signed an MoU with an alliance representing 16 West African countries, aiming to accelerate the implementation of Article 6 and promote carbon market instruments across West Africa.

EBRD falls short of ending fossil fuel investment

The European Bank for Research and Development (EBRD) has introduced new criteria intended to restrict financial support to midstream and downstream fossil gas projects that are deemed ‘exceptional’ cases, but has stopped short of ending funding in the sector.

AMERICAS

US government releases guidance on sustainable aviation fuel tax credits

The US Department of Treasury and Internal Revenue Service (IRS) released information on Friday clarifying eligibility for the sustainable aviation fuel (SAF) tax credits, intending to incentivise low carbon jet fuel production to reduce greenhouse gas (GHG) emissions and scale the industry.

California agency approves Diablo Canyon extension through 2030

The California Public Utilities Commission (CPUC) on Thursday voted to extend the operation of Pacific Gas and Electric’s (PG&E) Diablo Canyon nuclear plant through 2030, despite opposition from environmental groups.

US DOE awards $890 mln for CCS, $350 mln for methane cuts in latest outlay

The US Department of Energy (DOE) is awarding $890 million to three CCS projects, while alongside the US Environmental Protection Agency (EPA) has announced $350 mln to reduce methane emissions from the oil and gas sector, ramping up its investment in emissions cuts.

Canada to fall just short of 2030 emissions reduction target, more measures needed -report

Canada is on track to achieve between 85-90% of its 2030 emissions target, meaning that a number of additional measures are required to reach the federal goal of at least 40% below 2005 emissions by 2030, according to an independent assessment of Canada’s 2023 Emissions Reduction Plan Progress Report.

WCI current vintage, advance auction sizes decline for first 2024 allowance sale

California and Quebec will offer fewer carbon allowances at their February auction in comparison to the Q4 2023 WCI sale in November, and lower year-on-year, as the emissions cap in the joint carbon market tightens, according to a government notice published Friday.

Producers, financial players roll into V24 CCAs, specs ride RGGI rally

Regulated parties and speculators shed V23 net holdings of California Carbon Allowances (CCAs) for gains in V24 as positions were rolled ahead of end-of-year rebalancing, RGGI market saw speculative interest across vintages as allowance prices hit records, according to US Commodities Futures Trading Commission (CFTC) data published Friday.

US DOE eyes field test of underground storage for hydrogen, ramps up scientific testing

Scientists leading the US Department of Energy’s (DOE) Subsurface Hydrogen Assessment, Storage, and Technology Acceleration (SHASTA) project outlined progress Friday as part of the project’s pursuit to identify and address technological hurdles, as well as enable public acceptance for underground storage of hydrogen.

CAF leads charge for high-integrity voluntary carbon market in Latin America and Caribbean

The Development Bank of Latin America and the Caribbean (CAF) is advising regional policymakers and regulators on how to embed a high-integrity voluntary carbon market within national strategies and frameworks.

ASIA PACIFIC

Australian states release vastly different climate plans

The states of Western Australia and Queensland both made updates to their climate plans this week, showing the yawning levels of difference in ambition, at least on paper, between them.

CN Markets: CEA trading volume continues to drop amid lukewarm demand

Weekly trading volumes in China’s national carbon market continued to shrink over the past week due to slowing compliance demand, with participants saying most regulated entities have now surrendered their permits for 2021 and 2022 compliance.

Taiwan releases draft rules on domestic carbon credit trading

Taiwan has released a policy draft regulating the trading of domestically issued emissions reductions credits as supplementary measures to complement the island’s proposed carbon levy scheme that will be developed in the coming few years.

VOLUNTARY

Direct air capture an ‘outrageously expensive boondoggle’, say scientists, entrepreneurs

Direct air capture (DAC) technology has become a key focus in the fight against climate change, but a group of scientists and entrepreneurs have come out against the solution, calling it ‘outrageously expensive boondoggle’.

Carbon credit certifier, agriculture bank sign capacity-building MoU

The world’s leading carbon credit certifier has signed an MoU with a bank-led pilot programme for farmers seeking to utilise marginal land, aiming to support capacity-building for participation in land use-based projects.

Verra seeks views on new cookstoves carbon crediting methodology

Certifier Verra on Friday opened a consultation on a draft clean cookstoves methodology that enables carbon crediting from improved efficiency or switching fuels.

Living on the edge: Study examines carbon sequestration impact of trees growing on rainforest boundaries

Increased clear-cutting of rainforests has meant trees on the edges of these areas are significantly different from those growing more in the centre, a study has found, with implications for carbon sequestration rates.

Researchers chart path to help make tropical forest restoration more financially viable

Researchers have charted an incentive-lined path to help make forest restoration financially viable in developing countries, overcoming longstanding challenges of high upfront costs and uncertain returns.

Grasslands’ soil carbon cannot offset ruminant emissions, study says

The idea that soil carbon sequestration in grasslands can cancel out the greenhouse gas emissions from ruminants that live on them has been challenged by new research.

SHIPPING

INTERVIEW: EU emissions intensity target for shipping a key driver for clean fuels, says green methanol producer

A green methanol producer looking to rapidly scale up fuel supply in the US and Europe says that both regulatory and retail factors are driving shipping companies to purchase green fuel, including the EU’s ETS and FuelEU maritime policy, under which overachieving shippers can receive credits to sell onto others.

BIODIVERSITY (FREE TO READ)

Regen Network weighs taking on board Terrasos biodiversity credits

Environmental trading platform Regen Network is lining up a vote among its community members to decide whether to start listing units generated by Colombia-based Terrasos as a first outright biodiversity credits on the platform, with others to follow.

Western Australian government moves to protect 400,000 ha of old growth forest

Western Australia will end commercial logging in its old growth and native forests from the beginning of next year, according to a government plan released Friday.

Nature start-up raises $1.6 mln to scale AI biodiversity monitoring tech

A UK-based start-up has raised $1.6 million in pre-seed investments to scale its AI technology that it says can convert high-resolution landscape imagery to actionable insights.

Ugandan project eligible for FSC-certified nature claim sponsorship

A forestry project in Uganda has obtained Forest Stewardship Council (FSC)-certified accreditation for its soil conservation, enabling it to ask for sponsorship for its work.

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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

Still pumping – The President of the COP28 climate summit told the Guardian that he will continue with his oil company’s record investment in oil and gas production, despite coordinating a global deal to “transition away” from fossil fuels. Sultan Al-Jaber, who is also the chief executive of the UAE’s national oil and gas company, Adnoc, said the firm must satisfy demand for fossil fuels. “My approach is very simple: it is that we will continue to act as a responsible, reliable supplier of low-carbon energy, and the world will need the lowest-carbon barrels at the lowest cost,” he said, arguing that Adnoc’s hydrocarbons are lower carbon because they are extracted efficiently and with less leakage than other sources. “At the end of the day, remember, it is the demand that will decide and dictate what sort of energy source will help meet the growing global energy requirements,” he added.

Seed money – The French government and Conservation International, supported by the Rob Walton Foundation and the Gordon and Betty Moore Foundation, launched the €115 mln Seed Fund for Forests, Nature, and Climate on the sidelines of COP28 in Dubai. The fund, which aims to grow to €200 mln, will support governments in kickstarting natural climate solutions as part of a new effort to promote investment in the protection of nature, an announcement said. The Democratic Republic of Congo, the Republic of Congo, Ghana, and Papua New Guinea were among the first countries to announce their “Country Packages for Forests, Nature, and Climate”, which will receive funding for up to €8 mln.

EMEA

Granting billions – The 36 large-scale projects selected via the EU ETS-financed Innovation Fund’s third call in July, plus one project from a reserve list, today signed their grant agreements for their funding. Altogether, the 37 projects span 14 countries and have the potential to reduce GHG emissions by over 200 MtCO2e during their first 10 years of operation. Two more projects are still undergoing grant agreement preparations whereas three projects withdrew, making funds available for those on a reserve list. Read Carbon Pulse’s in-depth coverage on how the Innovation Fund’s upcoming calls represent a major step-up in funding.

Balancing the budget – Germany’s parliament on Friday approved plans to raise the country’s levy on CO2 emissions, AP and other media reported, as part of a deal announced earlier this week to resolve a budget crisis. The CO2 price will rise to €45 per tonne from the current €30. It had previously been set to rise to €40. Chancellor Olaf Scholz said on Wednesday that the government would spend billions less than planned on climate and energy transition projects each year to 2027 and increase the carbon price rise. This followed a court ruling last month that a 2021 government budget act redirecting €60 bln initially borrowed to address the Covid-19 pandemic towards climate and energy measures was unconstitutional, which led to weeks of budget negotiations between the coalition parties. The government will keep to its target of delivering a climate-neutral transformation of the economy, Scholz said.

And… more money, from the EU – A major revamp of Latvia’s rail service was inaugurated with the first of 23 new electric trains commencing its passenger service in Riga and its surrounding regional network. The project was co-financed by EU Cohesion Funds from the 2014 – 2020 programming period, with a total of €114 mln. Also today, the EU Commission authorised both a €50 mln Belgian state aid measure to support the production of batteries and electrolysers in the Wallonia region, as well as a €140 mln Portuguese state aid scheme to support the production of renewable hydrogen and biomethane with the goal to reduce fuel dependencies.

ASIA PACIFIC

Technicalities – The Australian government has released a consultation on updated production variables, emissions intensities, and international best practice benchmarks under the Safeguard Mechanism. The draft legislation, which is open for consultation until Jan. 16, inserts new and amended production variable definitions, default emissions intensity values, and introduces the first tranche of international best practice emissions intensity values for facilities that are new or creating new productions.

A first – Japanese shipping company MOL on Friday announced that in January it will become the world’s first shipping company to launch a blue bond. The bond will be shaped in line with MOL’s blue bond framework, which outlines criteria for the environmental and social benefits required by projects to be eligible. The Japan Credit Rating Agency has awarded the bond its highest rating on the assumption of the environmental benefits to be achieved, mostly GHG emissions reductions. MOL intends to invest a total 650 bln yen ($4.58 bln) in resolving environmental issues over 2023-25, and the blue bond will help finance that effort.

AMERICAS

Fossil funders – A recent report finds that Canada’s biggest banks come in at the bottom of low-carbon finance rankings, reports the Canadian Press. The report by BloombergNEF found that, in 2022, Canada’s top five banks directed globally an estimated 73 cents toward low-carbon energy for every dollar supporting fossil fuel supply, well off the four-to-one ratio the report notes they need to hit this decade in order to limit global warming to 1.5C. The country’s biggest banks ranged in ratios of between 0.45:1 for BMO, enough to place it 88th in the ranking, down to 0.32:1 for Scotiabank, which pushed it outside the top 100 performers. National Bank was a notable outlier, coming in at C$1.10 in low-carbon funding for every dollar put toward fossil fuels, enough to rank 52nd globally. The report showed BMO, TD and Scotiabank’s ratios worsened from 2021, while CIBC and National Bank improved.

VOLUNTARY

Moving on up – Shopify’s Sustainability Fund that invests in carbon removals like Running Tide’s ocean carbon removal and Heirloom’s direct air capture (DAC) has committed a total of $54.8 mln to date via a total 40 fund partners, according to a new blog on its website. Through 2023, the e-commerce company has funded over 84,000 tonnes of durable carbon removal, following the launching in 2022 of the world’s first advance market commitment (AMC) for carbon removal, Frontier, together with Stripe, Alphabet, Meta, and McKinsey Sustainability. Next year, Shopify hopes to see more players step into the space to add to efforts to lower the cost of carbon removal, as well as a greater focus on project development and fast innovation cycles.

AND FINALLY…

Fishing for uranium – Researchers have developed a new material that retrieves hard-to-get uranium ions from seawater much more efficiently than existing methods – a process that could open up the ocean as a new supplier of fuel for nuclear power reactors. The study, authored by researchers at Northeast Normal University in China and published in peer-reviewed journal ACS Central Science, noted that experiments were able to extract 12.6 milligrams of uranium per gram of water over 24 days. While uranium is the favoured element for nuclear fission, uranium ore deposits on land are finite – but the Nuclear Energy Agency estimates that roughly 4 bln tonnes of uranium are floating in our oceans in the form of dissolved uranyl ions.

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