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TOP STORIES
German emissions fall to lowest level in 70 years on weak industrial output, coal demand slump -report
Germany’s GHG emissions fell to their lowest level in 70 years in 2023, driven by an unexpectedly sharp decline in coal use and a significant drop in output from energy-intensive industries, according to a German think tank, pointing to a bearish outlook ahead for EUAs if this trend continues in 2024.
German nEHS, EU ETS carbon permit sales hit record €18 bln in 2023
The German government offloaded a record 358 mln emissions certificates in 2023 under the country’s domestic CO2 tax scheme for transportation and heating sectors (nEHS), helping it raise an eye-watering €18 billion from carbon permit sales.
EMEA
Experts seek clear role for novel carbon removals in EU 2040 climate targets
Novel carbon dioxide removals techniques need to play a bigger role in the EU’s climate policy, experts are insisting ahead of the release of the bloc’s proposed 2040 emissions reduction target.
Exchange-traded funds cut EUA holdings to lowest in 30 months amid price decline
Exchange-traded funds have cut their EUA positions to the lowest in nearly two and a half years after a six-month decline in allowance prices that has seen the benchmark front-December futures contract drop by more than 31%.
EU stakeholders divided over updated ETS free allocation rules
Stakeholders have mixed views about EU plans to make the bloc’s dirtiest factories pay for more of their CO2 output by curbing their free allocation under the ETS, consultation responses showed on Thursday.
Euro Markets: EUAs give up midweek gains as funds seen rebuilding short positions despite colder forecasts
European carbon prices gave up all their midweek gains on Thursday, despite climbing nearly €1 early in the day, as selling interest resumed even though weekly data showing that investment funds had reduced their net short position for a third successive week, while energy markets rose again on forecast colder temperatures.
Saudi Arabia tendering for 7.2 GW of gas power with CCS addition
Saudi Arabia is tendering for 7.2 gigawatts of power to build four gas-fired power plants across two sites, which according to reports use carbon capture and storage (CCS) to offset CO2 emissions.
Portugal approves law to set up national voluntary carbon market
Portugal has ratified a law that establishes a national voluntary carbon market and the rules for its operation, which it hopes will help protect its forests and safeguard them from fires.
AMERICAS
Washington releases Q1 auction volumes, reveals 2023 revenue from first year of cap-and-invest
Washington’s Department of Ecology (ECY) presented the volume of current vintage allowances on offer for its first of the four quarterly Washington Carbon Allowances (WCA) auctions of the year, and also published revenue generated following the completion of the first year of the state’s cap-and-trade scheme.
Washington extends date of third emergency rulemaking on carbon market allowance reserve auctions
The Washington Department of Ecology (ECY) announced Thursday that it was rolling forward its emergency rulemaking on the state’s Allowance Price Containment Reserve (APCR) sales ahead of the first auction notice for the year.
WCI Markets: CCAs rally late in week, WCA sluggishness persists post holidays
California Carbon Allowances (CCAs) plateaued and dipped early during the week following the holiday season before rallying late to near-record highs, while Washington Carbon Allowances (WCAs) declined slightly as the market continues to largely languish in stagnation, market participants told Carbon Pulse.
US DOE offers $2.5 bln carbon management funding opportunities
The US Department of Energy (DOE) Office of Fossil Energy and Carbon Management (FECM) on Thursday released closing dates on available funding for carbon projects, with deadlines as early as Friday.
Canadian offset financier prunes board in ongoing cost cuts
A Toronto-based voluntary carbon credit firm announced Thursday the reduction in the size of its Board of Directors as part of the firm’s cost cutting efforts.
VOLUNTARY
Carbon market group to cooperate with VCMI on improving integrity, access for Indian companies
An Indian carbon market industry group on Thursday announced it will collaborate with the Voluntary Carbon Market Integrity Initiative (VCMI) to advance the South Asian nation’s participation in global offset trade and boost quality in the country’s emissions reductions sector.
INTERVIEW: Forest carbon accelerator aims to emulate the mass momentum of Silicon Valley
A forest restoration accelerator will focus on scaling up seed bank networks to generate mass momentum behind the planting of native forests, in a drive to recreate the success of Silicon Valley startups among a new wave of entrepreneurs, and help scale carbon credit generation.
Canadian carbon credit financier to engage with 29 US municipalities on decarbonisation projects
A Vancouver-based carbon offset developer announced an agreement on Thursday with a US non-profit to assist municipalities in decarbonisation efforts while generating carbon credits in the process.
ASIA PACIFIC
Controversial Malaysian forest carbon credit project only held back by ‘technical’ issues -minister
Sabah state of Malaysia will press ahead with one of its most controversial carbon projects, an official has confirmed, blaming technical issues for the delay in the project launch.
INTERNATIONAL
Biocarbon company signs 15,000-tonne deal with silicone developer
A biocarbon firm has signed a supply agreement to deliver 15,000 tonnes per year to Norwegian company Elkem.
BIODIVERSITY (FREE TO READ)
UK needs to do more work to reach 30×30 nature goal, scientists say
The UK government must take further action to reach its target of conserving 30% of the country’s land and sea by 2030 (30×30), beyond its national guidance, a society of ecology-focused scientists has said.
French asset manager moves to exclude pesticide manufacturers
Paris-headquartered Ofi Invest Asset Management has announced it will exclude companies that produce pesticides, as part of its biocides and hazardous chemicals policy.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Green flag for REDD? – A REDD+ project in Sierra Leone slowed deforestation by 30% relative to control communities, according to a new peer-reviewed study published Thursday in the journal Nature Sustainability. This result tracks closely with certifier Verra’s calculations for the project (certified in 2015), which used a different timeframe and broader geographic area, according to the study’s authors. Forest cover within the Gola Rainforest National Park has remained largely intact, while deforestation in the 4 km buffer zone outside the park boundaries has continued, albeit at a slower rate than the previous deforestation trend. The study’s cost-benefit analysis concludes that the REDD+ project averts carbon at a cost “considerably lower” than the average sale price per offset ($3/tonne) within the evaluation period (2014-18).
ASIA PACIFIC
Tax scrapped – The New Zealand Coalition government has dumped the ‘ute tax’ and clean car discount, as of Dec. 31, Scoop Media report. The schemes were introduced by the former Labor, Green government providing cash rebates for EVs while imposing charges for pick-up trucks, or utes, and light utility vehicles as a way to reduce carbon emissions in the transport sector. However, the newly-elected National, Act NZ, and NZ First coalition government has argued the scheme was unfairly taxing farmers and trade workers, who they said have little choice about the vehicle they need for work. Transport Minister Simeon Brown noted the two schemes were designed to financially balance each other out, but said more was paid out for EV rebates than was received in charges, with the cost being borne by the taxpayer. She said her government was committed to encouraging the uptake of EVs by building out EV charging infrastructure across the country.
Autos optimised – Component supplier SKF India has introduced a new freely available auto CO2 calculator tool to help customers in the automotive industry to better understand and address their carbon emissions, Express Utility reported Thursday. The company said the tool is designed to improve bearing selection process, and, using data-driven analytics, provides estimates of carbon emissions for internal combustion engine vehicles, and energy losses in electric vehicle powertrains. The company said CO2 emission and power loss estimations could be leveraged as a starting point to engage with its expert application engineers who could provide a detailed view of the specific carbon emissions and power loss profile for the selected bearings. The SKF expert could further provide insights on how the customer’s application could be optimised further to reduce energy consumption and corresponding emissions, and improve sustainability performance, according to the report.
AMERICAS
Trucking troubles – California regulator ARB presented a notice stating that it would not enforce the Advanced Clean Fleets (ACF) rule until the US Environmental Protection Agency (EPA) grants a preemption waiver from the Clean Air Act, or determines that a waiver is not necessary. The rule requires all new drayage trucks put into service in the state after Jan. 1 to be zero emission vehicles. After its adoption in April last year, the California Trucking Association filed a federal lawsuit seeking to block its enforcement in October, contending that ACF conflicts with the Clean Air Act and the Federal Aviation Administration Authorization Act of 1994. ARB then requested the preemption waiver regarding the challenged provisions of the ACF rule. Following the reprieve, the regulator has asked the trucking industry to start transitioning to zero emission vehicles and voluntarily report and comply with the regulations while it awaits clarity. According to published reports, the California Trucking Association agreed not to file a preliminary injunction motion seeking to enjoin enforcement of the challenged provision of the ACF regulation while the waiver request is pending before the EPA.
Island initiative – The Sustainable Forest Alliance (SFA), an alliance of Prince Edward Island (PEI) woodlot owners, is looking to begin the Canadian province’s first carbon forestry project this year, the Local Journalism Initiative reported Thursday. The SFA is holding information sessions across PEI for interested woodlot owners in advance of the project, which is planned for March and has a goal 10,000 acres (some 4,000 hectares). The SFA has been working closely with Eastern Forest Solutions to create management plans for those woodlots interested in participating in the first carbon credit project in the province, and, to take part in the carbon forestry project, PEI woodlot owners are required to register with the SFA and agree to follow a forestry management plan unique to their land created by Eastern Forest Solutions. These plans “will encourage and guide woodlot owners to improve their woodlots over the years, both to benefit their potential carbon credit income and improve the overall health of the forest,” the report stated. Carbon credits produced by members of the SFA will be managed by Eastern Forest Solutions, with Thomas Baglole, an SFA member and the president of Eastern Forest Solutions, acting as a carbon broker. The exact monetary value of carbon credits involved in the project is yet to be determined, according to the release.
Pipeline plaintiff – Summit Carbon Solutions has filed a federal lawsuit against Kossuth County, Iowa, challenging new ordinances that restrict where the company’s proposed CO2 pipeline system can be located, the Des Moines Register reported Thursday. The ordinances set minimum distances a CO2 pipeline can be located in proximity to cities, houses, and other facilities. It is the fourth lawsuit the company has brought against Iowa counties that have sought to impose new restrictions on the project, with the company arguing that those provisions are beyond the authority of the counties because federal regulators are charged with governing the safety aspects of such pipelines and the Iowa Utilities Board approves their routes. A federal judge has already granted the company permanent injunctions against Shelby and Story counties that bar them from enforcing their ordinances, while another lawsuit against Emmet County is pending. The county has not yet responded to the lawsuit in federal court.
VOLUNTARY
Calculate your carbon – CDR.fyi has launched a new Corporate CDR Calculator that helps companies determine the amount of durable carbon dioxide removal (CDR) they need to buy to reach their net zero targets. Using SBTi-aligned CDR scaling scenarios, the tool looks at how much removal is needed globally every year and bakes that into a realistic scaling path, which then translates into a corporate responsibility. “Companies with high profits and low investment needs to reduce emissions are encouraged to buy several times more CDR,” the release stated. Purchasing CDR credits to offset a company’s carbon emissions footprint is growing in popularity, particularly among tech companies such as Shopify and Microsoft, which have teams dedicated to the matter.
AND FINALLY…
It’s a bird, it’s a plane – Airbus is set to test out some new “flapping wings” – named the eXtra Performance Wing – in Bordeaux, France. The design stems from biomimicry (biologically inspired engineering), altering shape and form during flight to maximise aerodynamic efficiency. Additionally, the aircraft builder is experimenting with hinged wingtips that increase lift and reduce drag on its small-scale AlbratrossONE demonstrator, named after the seabird, which has already completed several tests with the semi-aeroelastic wingtips. The aerospace company recently received $148 mln by the Aerospace Technology Institute for wing-related research, and says making wings longer, leaner, and lighter is one of the biggest ways to improve fuel efficiency and reduce carbon emissions. It has further developed three 56-foot (17 metre) full-scale demonstrators to test new wing designs, which will be tested for structural capability in the Filton facility in the UK. (Robb Report)
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