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WEEKEND READS
ANALYSIS: Red Sea diversion piles on shipping costs but unlikely to increase sectoral EUA demand
The diversion of ships around the Cape of Good Hope to avoid attacks in the Red Sea will substantially increase emissions compared to the usual Suez Canal route, but the impact on EUA demand from the shipping sector is not likely to be significant in 2024 due to its gradual phasing into to the EU ETS, experts told Carbon Pulse.
ANALYSIS: Saskatchewan on shaky legal ground in withholding federal carbon tax payments
Saskatchewan, which stopped collecting the federal carbon levy on gas utility bills as of Jan. 1, will be in violation of Canadian law should it refrain from making payments to Ottawa, with significant impacts to the CO2 tax rebates that are returned annually to provincial households, experts told Carbon Pulse.
INTERNATIONAL
Meet the new boss, same as the old boss: Azerbaijan selects ex-oil exec as COP29 president
Azerbaijan’s environment minister, who worked for 26 years at the country’s state oil and gas firm, has been appointed as the president-designate of COP29, due to be held in November in Baku.
EMEA
Coal back on the table in South Africa’s updated energy plan
South Africa’s energy ministry has published a new draft long-term energy blueprint that foresees the building of more coal power capacity, a move that appears to lower the nation’s climate ambition as the government tries to grapple with energy security issues.
Euro Markets: EUAs end first week of 2024 down 5% as market focuses on weather outlook
European carbon prices made and then sustained early gains during a stable session on Friday, though ended the week 5% lower, as traders kept an eye on forecasts for colder weather and firmer gas prices provided support in the absence of the sustained selling that had characterised the earlier part of the week.
German sales push EEX EU carbon volumes 6% higher in 2023, futures slump by one-fifth
EEX’s European carbon volumes ticked up 6% in 2023 compared to the previous year, with strong emissions certificate sales for Germany’s domestic nEHS scheme accounting for the bulk of the growth, though the more lucrative secondary trade saw declines as futures dealings slumped by over one-fifth.
British CDR research hub crowns winners of latest funding round
CO2RE, the UK’s national research hub on CO2 removals (CDR) led by the University of Oxford, this week announced the four winners of its latest funding round, with each set to receive up to £50,000.
ASIA PACIFIC
China ETS gets clout boost as State Council approves regulations
China’s State Council on Friday approved regulations for the national emissions trading scheme, adding bureaucratic clout to the scheme, which so far only has been formally backed at ministerial level.
CN Markets: CEA price slides after compliance deadline passes
Sentiment in China’s national carbon market is being reset after the market concluded the second compliance period at the end of 2023, with participants expecting more policy updates to be announced later this year.
AMERICAS
New CCS method could cut costs for CO2 capture at power stations
US-based academics say they have found a more efficient way to capture the CO2 emitted from power stations, which may eventually assist the energy transition.
US DOE announces $189 mln conditional loan for methane detection network
A Denver-headquartered emissions management firm is set to receive financial backing from the US Department of Energy’s (DOE) Loan Programs Office (LPO) to scale its methane detection technology across six states.
North American carbon market traders once again grow V24 holdings across WCI, RGGI
For the second week in a row, regulated parties and speculators both built on their net holdings of California Carbon Allowances (CCAs) and RGGI allowances (RGAs) as the new year began, while the US Commodities Futures Trading Commission (CFTC) again did not report Washington allowance (WCAs) holdings, data published Friday showed.
VOLUNTARY
Electric racing team charges ahead with offsetting emissions from its latest season
An automaker-led team competing in a global motorsport championship for electric cars will offset emissions from its 2023 season through the purchase of carbon credits from a biotech company developing meat alternatives registered under Iceland-based International Carbon Registry.
BIODIVERSITY (FREE TO READ)
WWF launches roadmap for regenerative agriculture in England with nature markets plan
WWF has launched a roadmap for regenerative agriculture in England with steps for expanding nature markets including ramping up biodiversity net gain requirements.
EU forest strategy could move biodiversity risk to more vulnerable countries, study warns
Even under a moderate implementation of the EU’s biodiversity strategy, tens of millions of cubic metres of roundwood production would be moved to countries with lower governance quality and higher risk of species extinction, a study has warned.
UK politicians call for environmental footprint launch after ‘alarming’ deforestation findings
The UK needs to finish developing an environmental footprint indicator to help demonstrate how it is tackling distressing deforestation levels, a group of UK politicians has said.
Firm awarded $24 mln by USAID to conduct conservation, blue carbon initiatives in Cambodia
A US-based consulting and engineering services company has been awarded $24 million by the US Agency for International Development (USAID) to preserve biodiversity and natural resources, and promote blue carbon initiatives in Cambodia, it announced Thursday.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Skid-addle – Chris Skidmore, a former UK government minister, is resigning as an MP and leaving the Conservative Party in protest against the government’s plans to increase North Sea oil drilling. This decision, ahead of the general election later this year where the Tories are trailing Labour by some 18 points, prompts another challenging by-election for the party. Skidmore, previously the energy minister and a key figure in Britain’s 2050 net zero commitment, criticised the government’s Offshore Petroleum Licensing Bill, which mandates annual licensing rounds for oil and gas drilling in the North Sea. He believes the bill signals a retreat from the UK’s climate commitments, especially when renewable and clean power is growing exponentially. (FT)
No green guarantees – UK opposition leader Keir Starmer has said his poll-topping Labour party could further reduce the amount it has previously pledged to borrow for the party’s “green prosperity plan”, during a new year speech. The plan initially laid out £28 bln a year of additional state borrowing for green projects but has already been cut back in size since first being launched two years ago in a more favourable economic climate. Starmer has said the plan must be carried out within the party’s fiscal rules, which state that debt must be falling as a share of national income after five years. If the fiscal rules don’t allow it, then the government will borrow less, Starmer said. He also said that there was no question of withdrawing on a separate target to draw 100% of UK energy from low-carbon sources by 2030. (FT)
Big step up – Germany’s installed renewable energy capacity increased by about 17 GW in 2023, taking it to a 170 GW total, with installations of new solar PV leading the way, according to figures released by the Federal Network Agency (BNetzA), as reported by Clean Energy Wire. At 14.1 GW, new solar additions almost doubled compared to 2022, largely thanks to the growth of many private systems, but also some commercial systems on open spaces and rooftops. So-called balcony installations in particular experienced a boom in 2023. Wind power remains the predominant source of renewable electricity in the country, however. Overall, renewables accounted for more than half of power consumption in Germany for the first time last year.
Lag in Lebanon – Lebanon’s “Distributed Renewable Energy Law” is experiencing major challenges in large part due to the government’s failure to form the requisite Electricity Sector Regulatory Authority, according to Lebanese experts speaking to the Arabic-language newspaper Attaqa. The law, passed on Dec. 14, 2023, supports the country’s NDC pledge to increase the country’s share of clean electricity to 30% of the energy mix by 2030. It would break the Electricite du Liban (EDL) monopoly on the country’s electricity production and allow the private sector to produce electricity without going through EDL. Experts expressed pessimism about near- or medium-term implementation, emphasising that the new regulatory authority would be the key focal point for realising the renewable energy law.
Wood-byes – The CEO of Woodbois has resigned with immediate effect, as the Africa-focused forestry, timber trading, and afforestation company integrates the roles of CEO and chair. Executive Chair Guido Theuns has been appointed CEO as well as his existing role, with the company combining the two roles as part of a broader restructuring strategy. Outgoing CEO David Rothschild will continue to provide advisory support for the company “when requested for the coming few months”, the company said. The move is intended to enhance decision making and improve operational efficiency, it said. (Morningstar)
ASIA PACIFIC
Curb down – India is planning to cut the amount of equity investment in half to $1.8 bln for 2023-24 to help fund three state oil refiners’ green energy projects, according to government and industry sources, Reuters reports. State-run oilers Bharat Petroleum and Hindustan Petroleum are looking to cut their net carbon emissions to zero by 2040, while Indian Oil is looking to do the same by 2046. Some 300 billion rupee ($3.6 bln) in equity support was announced in the budget this year to help the companies reach these goals. However, an industry and a government official said the cash would be provided in a staggered manner, and would be given just 150 bln rupee ($1.8 bln). India is facing over a 40% shortfall in collecting revenues from stake sales in state-run companies, and is prioritising spending to try and limit its fiscal deficit to 5.9% of GDP for this financial year to the end of March.
AMERICAS
Hear for nuclear – Representative Stephanie Barnard (R) prefiled HB-2120, which enables cities to grant nuclear facilities an additional four years to complete projects and qualify for tax breaks available for new manufacturing in targeted urban areas. The state currently provides a tax break to incentivise new manufacturing and industrial uses on undeveloped or underutilised lands in targeted urban areas. The law requires projects to be completed within three years to qualify, although cities are authorised to extend that period by up to two years in some cases. The bill would allow extensions of up to six years for nuclear facilities. Meanwhile, a second nuclear-related bill, HB-1924, has been scheduled for hearing in the House Committee on Environment and Energy on Jan. 8. The bill would require the Interagency Clean Energy Siting Coordinating Council’s annual report to include a recommendation regarding the timeline and feasibility for fusion expected to be an appropriate category for the development of a nonproject environmental impact statement. In the past year, the US National Ignition Facility has made several breakthroughs in nuclear ignition, but scaling the technology to a commercial level could still be decades away. Finally, adding to the list of recent climate bills in the works in Washington, HB-2039 – aimed to streamline the appeals process for environmental and land use matters – has also been moved into the same committee stage with the hearing scheduled on Jan. 8 as well.
More moves, Maryland – Policy actions detailed by the Maryland Department of the Environment (MDE) to reduce GHG emissions within the state lack a cohesive short-term legislative strategy for how the state can meet its climate and clean energy goals, said nonprofit news outlet Maryland Matters on Friday. The policy action report followed MDE secretary Serena McIlwain and Govervor Wes Moore’s (D) promise to make the Free State a leader in innovative state-based climate policy. But it lacks a solid legislative blueprint, as it is not clear how much energy and political capital the governor plans to invest in advancing the plan during the busy and uncertain legislative session. The absence of a concrete outline regarding how the state can start bringing in the $1 bln every year to implement the plan also leaves lawmakers and environmental advocates scrambling to develop a battle plan less than a week before the 90-day General Assembly session.
Hear ’em out – The Massachusetts Department of Environmental Protection (DEP) will be holding two public hearings on the proposed revisions to the GHG Emissions Reporting regulation that lays out reporting mandates beginning in 2026 for companies heating fuel sellers and distributors in Massachusetts, including suppliers of natural gas, fuel oil, and propane and implement a reporting requirement for fuel storage facilities. A draft of the framework had faced pushback from propane suppliers as several argued that propane heating is currently cleaner than heating from electricity, but the proposed amendments have not removed requirements for the suppliers.
Port power – The Port of Virginia has become the first major US East Coast port to power its entire operation using 100% clean electricity, according to a press release by the port earlier this week. The feat was achieved eight years ahead of its original 2032 goal, and all of the terminals now run from clean energy. At present, the port operates 116 electric stacking cranes, four electric rail cranes, and 27 electric ship-to-shore cranes, but the fleet of all-electric equipment is set to grow as the port moves ahead with its plans to optimise the North Berth at Norfolk International Terminals. The expansion will increase the fleet size to 152, seven, and 31 respectively.
Slow going – Over a year after the Indianapolis City-County Council supported creating a carbon credit programme for green space preservation, progress has been slow, local media reports. The scheme, initially focusing on Eagle Creek Park, aims to sell carbon offsets to companies and other organisations, using the revenue for forestry protection or expansion. The plan’s launch has been delayed due to the decision to manage it internally rather than hiring external consultants, a cost-saving move. Although proposals were received from various groups, the city chose to use existing staff for the programme. The potential for Eagle Creek Park to generate significant revenue through carbon credits has been recognised, but the city is still assessing the feasibility and number of credits available. The project is considered a pilot, and if successful, a third party will be sought to sell the credits. Meanwhile, a similar project in New Palestine’s Jones Forest by the Central Indiana Land Trust is said to be progressing more rapidly. Local environmental groups have mixed opinions, with some expressing concern about delays and the need for broader forest preservation efforts in the city. (IBJ)
Rocky Mountain marketplace – Colorado-headquartered technology firm Trimble announced Friday the launch of a carbon marketplace in an effort to aggregate verified data across the agriculture supply chain and offer economic opportunities to farmers via carbon credits. Trimble said that by connecting an ecosystem of farmers, agronomists, agricultural retailers, and carbon buyers, the Connected Climate Exchange would enable participation in the carbon market. In the press release, the company claimed to have sold over 4.5 Mt of agricultural carbon offsets in Canada, and to have generated over $50 mln for farmers.
VOLUNTARY
All together now — The Connected Climate Exchange launched by Trimble aims to connect and aggregate verified data across the agriculture supply chain, from farmers, agronomists, ag retailers, and carbon buyers in order to streamline the process of verifying emissions data and buying carbon credits. The marketplace is intended to reduce complexity for farmers to help them engage with the carbon markets and track their emissions in a verifiable manner. Trimble will partner with agronomy-focused, enterprise agriculture companies to optimize interventions at the farm level, then aggregate the impacts to support emission reduction programs for companies upstream in the agriculture value chain, the company said. (CropLife)
INVESTMENT
Falling funds – Climate tech funding in 2023 totalled $32 bln, down 30% from 2022, according to a report published on Friday by CTVC by Sightline Climate. Overall deal activity decreased for the first time since 2020, with deal count down 3% compared to last year, the report found, while growth investment fell 41% and Series C fell 35%, with deal counts for both down about 30%. The jury is out on whether investment will keep cooling or heat back up, CTVC said, with views for 2024 a mix of bulls and bears, buoyed by expectations of large raises from companies and investors who held off in 2023, but pushed down by public market conditions and continued investor caution.
AND FINALLY…
Plenty peace, plenty plants – The Benedictine monks of Glenstal Abbey in Limerick, Ireland have joined the 100 Million Trees project, started by siblings Richard and David Mulcahy as part of a broader initiative to plant the said number of trees across 50,000 mini forests throughout the nation within 10 years. The monks have started planting 2,500 native Irish trees, such as ash, oak, birch, pine, and alder, on a small plot of the abbey grounds. Abbot Brendan Coffey extended his support for the project, noting that it aligns with Pope Francis’s message encouraging people to do their part for the environment. “This initiative not only enriches our local environment, but contributes to the greater ecological and indeed spiritual well-being of our nation,” Brendan commented. (RTE)
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