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TOP STORIES

UK confirms will introduce carbon border measures by 2027

The UK government announced Monday that it will introduce a carbon border adjustment mechanism (CBAM) by 2027 on big-emitting sectors, a deadline of a year later than the EU is due to introduce its own system.

UK to explore carbon market supply balancing mechanism, permit prices surge

Britain will formally consider introducing a supply adjustment mechanism to its carbon market to help balance future shifts in demand and mitigate the risk of sustained low prices, it announced on Monday, as prices rallied following the announcement of a consultation on the measure and the publication of associated documents.

AMERICAS

Brazilian state to launch concession for large-scale reforestation via carbon market -local media

The Brazilian state of Para will launch a public concession on 10,000 hectares of forest by the end of year, expected to generate millions in carbon credits through reforestation, local media reported Monday.

US carbon developer’s partnership with oil major pursues grassland credits

A Texas-based nature-based developer announced an agreement on Monday with a global oil major to develop a programme to revitalise US grasslands.

US oil major announces pilot plant for novel CCS technology

A major American fossil fuel company announced Monday plans to construct an industrial-scale carbon capture and storage (CCS) facility in the Netherlands using new fuel cell technology.

Regulators aim to allow SAF crediting in Washington’s CFS rulemaking update

Washington’s Department of Ecology (ECY) announced on Monday plans to update the state’s Clean Fuels Program (CFS) rule to permit sustainable aviation fuel (SAF) pathways for credit generation.

RGGI Market: Prices hover around all-time records as spreads dominate high volume

RGGI allowance (RGA) values plateaued over the week, remaining firmly around all-time highs as market players rolled onto 2024 vintage contracts, with participants largely expecting prices to potentially rise in the new year ahead of information from the ongoing programme review.

ASIA PACIFIC

Climate Change Authority recommends ACCUs for non-biological removals

Australia’s Climate Change Authority recommended in a paper Monday that non-biological ways of capturing carbon including direct air capture (DAC), carbon mineralisation, and biochar be eligible for Australian Carbon Credit Units (ACCUs) to drive uptake of these newer forms of carbon removal.

Australia’s human-induced regeneration debate continues as audit review findings swiftly criticised by experts

Australia’s Clean Energy Regulator has released a report into the auditing process of human-induced regeneration projects (HIR), also known as “gateway checks”, however its conclusions came under immediate scrutiny from other experts.

Australia’s Climate Change Authority calls for “urgent” review on methane emissions measurement practices

The Climate Change Authority has called for urgent phaseout and revisions of certain methodologies used to measure fugitive methane emissions from Australia’s coal, oil, and gas facilities, as part of reviews into GHG emissions reporting legislation and the Australian Carbon Credit Unit (ACCU) Scheme.

Xpansiv’s CBL trades its first generic ACCUs

Market operator Xpansiv on Monday announced its first trades of generic Australian Carbon Credit Units (ACCUs) via its CBL platform, ahead of a fully-fledged ACCU contract launch early next year.

Australian CCS ACCU project set for expansion after Japanese partners sign up

An Australian oil and gas company has plans to expand its onshore carbon capture and storage (CCS) project, eligible to earn Australian Carbon Credit Units (ACCUs), despite being months away from first injection.

Mitsubishi teams up with Thai player for AZEC decarbonisation work

Mitsubishi Corporation will work with Thailand’s Charoen Pokphand Group on an initial study to decarbonise the Southeast Asian country’s large industrial sector.

VOLUNTARY

VCM Report: Carbon credit retirements surge late in year, with older and cheap units favoured

A surge in retirement of carbon credits last week set voluntary demand on course to match 2022 levels, while trading volumes were boosted by rock bottom prices for pre-2018 REDD avoided deforestation credits as more onerous disclosure requirements loom.

INTERVIEW: Wildfire detection network could lower buffer obligation in forest carbon projects, boosting credit sales

A wildfire detection network operator believes it can assume an important role in forestry carbon by enabling a reduction in the credit buffer pool set aside for wildfires, thereby enabling a project to sell more carbon credits.

Environmental brokers, carbon credit project financier announce CO2 removals fund

An environmental markets brokerage and a carbon project financier have joined forces to launch a new investment vehicle aimed at the CO2 removals market.

Study proposes optimal forest management approach for maximum carbon sequestration

Researchers have determined what they believe is the optical forest management approach to balance logging needs and maximise carbon sequestration.

EMEA

EU agency flags doubts that member states will meet many of bloc’s 2030 climate targets

The EU may not meet the majority of its climate and environment targets by 2030, contrary to expectations for the bloc’s green policies, an EU agency revealed on Monday while the bloc’s executive highlighted that extra national efforts were needed.

Euro Markets: EUAs post strong gains on final day of Dec-23 trading as gas markets leap on shipping interruption

European carbon prices advanced strongly on the Dec-23 contract’s last day of trading on Monday as the final auction of 2023 took place, with prices gaining strong support from a sharp jump in natural gas prices responding to news that a major producer was suspending shipments through the Red Sea.

BIODIVERSITY (FREE TO READ)

Clear signs of change in nature finance market, paper says

The market for nature-based solutions is growing in demand and scale, as larger institutional investment managers begin to enter, an academic paper has said.

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Job listings this week

• *Feature Writer/Sub-Editor, Carbon Pulse – North America
• Consultant, Climate Change and Carbon Markets, Hamerkop Climate Impacts – London
• Policy Officer (International Transport Decarbonisation), Carbon Market Watch – Brussels, Belgium
• Director of Carbon Finance, CaVEx – UK/East Africa/South Africa
• Clean Energy Devices Manager, CaVEx – UK/East Africa/South Africa
• Nature Based Solutions Lead, CaVEx – UK/East Africa/South Africa
• Senior Business Development Manager, Abatable – London
• Sales Development Representative, Abatable – London
• Computational Scientist, Yale Center for Natural Carbon Capture, Yale University – New Haven, CT
• Policy Advisor, Prairies Region, Nature United – Manitoba/Saskatchewan/Alberta

*Premium listings

Or click here to see all listings

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BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

New charges – The UAE has brought new terrorism charges against dozens of imprisoned activists, rights groups reported, as the autocratic Gulf monarchy stepped up its crackdown on dissent during COP28. Nearly 100 Emiratis were summoned to an appeals court in the capital of Abu Dhabi for a mass trial on Dec. 7, according to the Emirates Detainees Advocacy Centre, accused of setting up or supporting and financing a terrorist organisation. The overseas advocacy group said it was concerned about the apparent fabrication of charges which carry severe penalties, including the death sentence and life imprisonment. The 87 Emiratis facing a renewed trial include Islamist activists who were imprisoned after the Arab spring protests of 2011, when calls were made for democratic elections in the autocratic UAE. Some of the defendants facing new charges are living in exile. (FT)

EMEA

Euro 7 – EU co-legislators reached a provisional deal on new rules to reduce emissions from passenger cars, vans, buses, trucks, and trailers. The regulation aims to support the transition towards clean mobility and keep the prices of private and commercial vehicles affordable for citizens and businesses. Brake particles emissions limits (PM10) for cars and vans will be 3mg/km for pure electric vehicles; 7mg/km for most internal combustion engine (ICE), hybrid electric, and fuel cell vehicles; 11mg/km for large ICE vans. The deal also introduces minimum performance requirements for battery durability in electric and hybrid cars and vans. Parliament and Council will now need to formally approve the agreement before it can enter into force.

Don’t overreact – Documents revealed the hidden problems at Russia’s new nuclear plant, according to Bloomberg reports. Engineers at Rosatom preparing a new 1.2 GW reactor to generate electricity at the Astravets Nuclear Power Plant (which was not yet connected to the power grid) were said to have detected a rare problem. Resin was reportedly seeping into the primary circuit, threatening to seize up critical components, according to internal documents of the Russian state nuclear corporation seen by the news website. Control rods and fuel assemblies risked being damaged or broken if the problem persisted when uranium atoms began fissioning. In the worst case, according to people familiar with the issue, accumulation of so-called ion-exchange resin, which regulates the purity of water flowing through plant channels and pipes, could impede reactor control, elevating the risk of a meltdown if something went wrong once it was online.

Efficient funding – The UK announced a string of energy efficiency measures, including a ‘Boiler Upgrade Scheme’, which will see allocated a further £1.5 bln to support citizens to move away from gas to energy efficient, low-carbon heat pumps, the government said on Monday. As well, a new £400 mln energy efficiency grant will launch in 2025 to help households improve insulation.

ASIA PACIFIC

Methane can jog on – Japan Energy and Metals and Minerals Corporation (JOGMEC) is working with Indonesia’s state oil company Pertamina to measure and quantify methane emissions from the latter’s gas production facilities in Sulawesi. The relationship was announced at the Japan-ASEAN Economic Co-Creation Forum Saturday, which celebrated 60 years of ties between Japan and the Association of Southeast Asian Nations. Japan’s Inpex is progressing a large-scale LNG project in Indonesia with Pertamina. The two will formulate a methane emission management project and calculate carbon intensity for natural gas upstream projects.  

Moving ministries – The Malaysian government established a new ministry of energy transition and public utilities in a major cabinet reshuffle last week, Eco-Business reported. The energy transition portfolio that used to be under the ministry of environment will now be a separate ministry, which could be a sign that the country needs to move its attention to meeting its targets under a national roadmap, the media said. It also said that the term ‘climate change’ has been dropped from the names of the ministries. While the ministry of energy transition will be headed by Fadillah Yusof, one of Malaysia’s two deputy prime ministers, the new ministry of natural resources and environmental sustainability will continue to be led by Nik Nazmi Nik Ahmad. Even though the move was met by some with optimism who believed that the separation will give each portfolio the attention it deserved, others treated it with scepticism, hoping that climate change will remain a priority for the current government despite the term being dropped from the name.

Green Deal – Sembcorp Green Hydrogen, an arm of Singapore headquartered Sembcorp Industries, signed an MoU on Monday with two Japanese firms — the conglomerate Sojitz Corporation and Kyushu Electric Power — to explore potential green ammonia production opportunities and for the supply of green ammonia produced in India to Japan, Reuters reported. Through the partnership, Sembcorp seeks to expand its footprint in India where the firm already has a gross renewable portfolio of 3.7 GW. The Japanese firm intends to invest about $8 bln in 2024-28 to support growth in renewables, it said last month.

Investing in green – Ambuja Cements, India’s major cement producing company, will invest $723 mln in renewable power projects, the company said on Monday, according to Reuters. The company said that the investment will be funded internally and will target a capacity of 1 GW through solar and wind power projects in the states of Gujarat and Rajasthan. The additional capacity will be added to the firm’s existing capacity of 84 MW and will be achieved by fiscal year 2026, the company said. Further, it added that these projects will increase the company’s total green power capacity to 60% from the existing 19%.

Blowin’ in the wind – The Australian state of Victoria will hold its first round of offshore wind energy auctions in late 2024 with an aim to award contracts in 2026, Renew Economy reported. The state government released its latest Offshore Wind Implementation Statement, which says a competitive auction process would be the best path to deliver Australia’s first tranche of offshore wind projects. The auction process will start with an expression of interest phase that would begin in Q4 2024 and close in Q1 2025. A formal proposal request phase would would then start in Q3 2025 and close in Q1 2026, and contract negotiation and award expected later in 2026. Victoria aims to have 2 GW of offshore wind operational by 2032, 4 GW by 2035, and 9 GW by 2040.

Joining the club – Greening Australia has become the nation’s third carbon project developer in a short span of time to join the push for setting up a Nature Positive Cooperative Research Centre (CRC). CRCs are government, academia, and private sector partnerships receiving public funding for a period of time. The initiative to set up a nature positive one has primarily been driven by universities, though developers Climate Friendly and Regenco earlier this month took up key roles. Greening Australia said in an announcement it sees the nature positive concept as “crucial to directing impactful environmental action and filling critical knowledge gaps in market-driven restoration”.

Blue bonds – Mitsui OSK Lines (MOL) is set to be the first shipping company to issue ‘blue bonds’ through a public offering in Japan’s domestic market in January 2024, according to Seatrade Maritime. The Japanese shipping company plans to issue JPY10 bln ($70.3 mln) with a tenure of five years. The bonds received the highest rating from the Japan Credit Rating Agency (JCR) based on its expectation that they will have a positive environmental impact.

AMERICAS

Big buy – Nippon Steel will buy United States Steel for $14.1 bln to create the world’s second-largest steel company with a key role in supplying American manufacturers and automakers, Bloomberg reported. The deal caps months of uncertainty over the future of US Steel, which was considering potential transactions since it rejected an offer from rival Cleveland-Cliffs for $7.25 bln in mid-August. For Nippon, Japan’s biggest steel producer, the transaction provides a large foothold in the American steel industry at a time when domestic demand is poised to benefit from rising infrastructure spending. US Steel is a key supplier to the lucrative automotive market in particular. The Japanese company has sought growth overseas to offset a litany of challenges facing its current operations.

Streamlining rules – Washington lawmakers pre-filed bipartisan House Bill 1955 on Monday, repealing 2019 rules that required utilities to calculate and report GHG emissions of their fuel mix, considering them unnecessary because more complete and stringent reporting requirements were enacted by the Legislature in 2021 as part of the state’s Climate Commitment Act (CCA), according to legislative documents. Washington’s Department of Commerce requested the bill which was sponsored by House representatives Stephanie Barnard (R) and co-sponsored by Beth Doglio (D).

EV regulations – Canada’s environment ministry will release the final suite of electric vehicle regulations on Tuesday, CBC reported Monday. The draft regulations, announced roughly a year ago, stated for one in five vehicles to be electric by 2026, three in five by 2030, and ultimately all new passenger cars sold in the country by 2035 to be zero-emissions. The regulations, anticipated to be published in full later this week, are expected to enable manufacturers to earn credits for low and no emissions-vehicles sold, as well as investments in charging infrastructure, to go towards annual targets set by the regulations. Companies which exceed or fall short of targets can sell or purchase credits from other companies, or use banked ones. The auto industry, in response to reporting of the new mandates, argued that the targets are too aggressive.

BP funding – Canadian project developer Klimat X announced that BP Carbon Trading, the emissions trading arm of British oil and gas producer BP, is the first funding partner of the company’s Sierra Leone restoration project. Vancouver-based Klimat X previously announced that it had secured a funding agreement of $2.5 mln from previously-unnamed BP Carbon Trading to support the planting and development of 5,000 ha of land in Sierra Leone, anticipated to generate between 1.6 and 1.9 mln credits. The developer hopes to generate as much as 15 mln credits across 25,000 ha over the project’s lifetime.

Well inquiry – Four Democratic members of the US House of Representatives have penned a letter inquiring of the policies and practices relating to well management, cleanups, and methane emissions of Diversified Energy Company, the largest owner of US oil and gas wells. The nine-page letter points at existing reports of the company’s marginal wells leaking methane, and asks for follow-up information and documents regarding the company’s practices by Jan. 3, 2024. The letter trails new methane rules announced by the US during COP28, targeted to achieve a near 80% reduction in the country’s methane emissions.

VOLUNTARY

Wanted soil experts – Costa Rica announced plans to search for a consultancy to carry out measurements as it looks to quantify the soil carbon potential of its forests as part of an initiative led by the UNDP and REDD+ Secretariat, Summa magazine reported Friday. Currently the country’s National Forest Financing Fund (FONAFIFO) pays $18 per hectare per year for carbon captured by forest cover through the Environmental Service Payment programme. If soil carbon payments were added to this service, the amount could increase, government officials noted. Costa Rica has 1 mln hectares of secondary forest and is looking for experts to study the effect of 70% of the country’s deforestation, thereby allowing the rate of change in soil carbon to be calculated. The accounting will include an inventory of 130 plots to estimate CO2 emissions from deforestation. The consulting company is expected to propose the methodological approach, sampling points, and the quality assurance and control procedures, among others, and must carry out the work within a period of approximately 34 weeks. Interested firms must demonstrate experience in calculating forest carbon stocks, soil carbon sampling, use of geographic information systems, personnel management, administration, planning, organisation, direction and control of technical fieldwork, among others.

AND FINALLY…

The price of love – Taylor Swift has faced criticism for generating significant air pollution due to her frequent private jet travels, reportedly linked to her relationship with Travis Kelce, a 34-year-old tight end for the Kansas City Chiefs. According to the Instagram account Taylor Swift Jets, Swift has taken 12 flights over the past three months, contributing to her romance with Kelce. These flights, between New York and Kansas City, and additional trips around her South American tour dates, have resulted in an estimated 138 tCO2 emissions. To offset this environmental impact, it’s calculated that Swift would need to plant 2,282 trees and let them grow for 10 years. In response to the criticism, a representative for Taylor Swift stated that she had purchased more than double the carbon credits required to offset all travel for her tour starting in Mar. 2023. This excess in carbon credits, according to the representative, covers the additional emissions from her trips to see Kelce during her tour. (Mirror)

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