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 STORY
War in Gaza generates more emissions in two months than 20 countries in a year -study
Emissions from the first 60 days of the war in Gaza were greater than the annual GHG output of 20 countries, according to a study published Tuesday.
EMEA
Kenya plans to channel at least 15% of carbon credit revenues for climate goals
The Kenyan government is proposing to take 15-25% of the income from carbon credits generated in the country to help meet its climate targets, according to draft carbon markets legislation.
Kenya-based DAC startup secures funding
A Kenya-based startup has secured significant funding for enhancing its direct air capture (DAC) technology.
EDF plans to invest billions to extend UK nuclear operations
EDF wants to inject an additional £1.3 billion into its existing UK nuclear fleet as the company aims to uphold current output levels and ensure energy security until at least 2026, it said Tuesday.
Report calls on policymakers to support European market for CO2 transport by ship
Policymakers should support progress towards a European market for the transport of carbon dioxide by ship by creating the right conditions and identifying barriers, according to a report published Tuesday.
Euro Markets: EUAs slip 0.6% with gas as early drop triggers short covering ahead of position data
European carbon recovered from a sharp gas-driven sell-off at the opening on Tuesday and traded in a fairly narrow range compared to recent days, with some traders said to be covering short positions, while most awaited the resumption of auctions next week as well as Wednesday’s publication of the weekly Commitment of Traders data.
AMERICAS
New York assemblywoman introduces counter proposal legislation for future cap-and-invest
A Democratic assemblywoman in New York’s lower house has introduced legislation for an alternative proposal for the state’s future cap-and-invest programme that entails stricter guidelines, following publication of a preliminary outline of the programme last month by state agencies.
Former California regulator comments on auto-acceleration mechanism, RNG in LCFS rulemaking
The former ARB branch chief responsible for overseeing the Low Carbon Fuel Standard (LCFS) commented on key features of the draft rulemaking in a webinar Tuesday, as the California regulator considers feedback to its proposed changes to the LCFS programme.
Massachusetts allocates $50 mln in forest conservation funds
The state announced funding of $50 million to support Massachusetts’ mandated emissions reductions targets and forest conservation efforts after a committee report issued forest management recommendations.
Washington Clean Fuel Standard credit surplus more than doubles in Q2
The Washington Clean Fuel Standard (CFS) generated a surplus of units in the scheme’s second quarterly credit generation figures, stemming largely from ethanol, according to government data published Tuesday.
US science advocacy warns of overreliance on gas power plants
A US nonprofit group of nearly 250 science and policy experts released an issue brief on Tuesday cautioning against the country’s “heavy” dependence on gas power plants given their lack of reliability under extreme weather conditions.
Quebec firms partner to use DAC tech to store captured CO2 in abandoned mines
A Quebec-based carbon removal project developer has partnered with a local direct air capture (DAC) company as part of efforts to build a facility to remove hundreds of thousands of tonnes of CO2 from the atmosphere and store it in disused mines.
ASIA PACIFIC
Japanese gas giant lines up more Asia Pacific CCS partners in ongoing regional decarbonisation push
A major Japanese gas firm is lining up yet more offshore carbon capture and storage work in the Asia Pacific, announcing a study in the Gulf of Thailand with national oil company PTTEP.
Major Japanese power company to provide carbon offset software
One of Japan’s largest power companies has teamed up with a carbon software provider to help popularise the use of carbon credits in the country, it announced Tuesday.
Australian businessman bids to take over 100% of legacy carbon player
One of Australia’s early carbon project developers has received an all-cash, off market takeover offer from Avatar Industries, a private entity controlled by an Australian businessman who already owns a significant chunk of the company.
NZ Market: NZUs start 2024 flat, market could be rangebound for Q1
The New Zealand ETS has started 2024 trading relatively sideways, with much of the gains made in the run-up to last month’s auction sold off.
INTERNATIONAL
2023 hottest year on record, CO2-spewing wildfires a major contributor -report
Global temperatures in 2023 reached the highest levels ever recorded, with carbon emissions from raging global wildfires among the main drivers of the exceptional heat, data from the European Union’s space programme showed on Tuesday.
US emissions monitoring tech firm eyes carbon market role despite Fonterra dropping out of pilot
A US tech company has developed monitoring equipment contributing to transport emissions cuts that it is seeking to deploy in global carbon markets, despite New Zealand dairy co-op Fonterra pulling out of a pilot with the firm due to delays.
VOLUNTARY
Conservation NGO managing 22 African parks turns to REDD carbon projects to boost finances
A conservation NGO, which estimates 3 billion tonnes of CO2 is being stored across the parks and protected areas it manages in Africa, has turned to developing REDD avoided deforestation projects to bolster finances.
US agtech firm Indigo Ag names ex-Tyson Foods boss as new CEO
US-based agricultural technology firm Indigo Ag has a former executive of Tyson Foods as its new CEO.
Argentina, conservation NGO launch software to record and promote reforestation
The Argentine government has launched software designed to document forested areas at a national level and aid reforestation efforts, a government agency announced on Tuesday.
Argentine digital logistics platform to offset emissions via green bonds
An Argentine digital logistics platform that specialises in truck fleet management for the logistics industry has announced the launch of a programme to provide its customers with the chance to offset their greenhouse gas (GHG) emissions through green bonds free of charge, according to a LinkedIn post.
Formerly UK-based carbon capture startup closes £3.6-mln seed funding round led by Aramco VC arm
A formerly UK-based carbon capture and clean hydrogen startup has closed a £3.6-million seed funding round led by Saudi Aramco’s venture capital arm.
BIODIVERSITY (FREE TO READ)
UK nature start-up to launch own biodiversity credit standard
A UK-based nature start-up launched this week with plans to carry out ecological restoration projects and develop its own voluntary biodiversity credit standard to drive private investment.
Developer to rehabilitate red panda habitats in Nepal through the sale of biodiversity credits
A Singapore-based project developer has planned to rehabilitate red panda habitats in Nepal, with funding to come through the sale of biodiversity credits generated by the project.
UK government gives new year boost to sustainable farming scheme to onboard more farmers
Subsidies under the UK’s post-Brexit sustainable farming scheme will be bolstered from this year, while premium payments will also be available for certain high priority action areas, in a bid to encourage more farmers to access the scheme.
ICYM
UPDATE – US EPA doles out nearly $1 bln for low-emission school buses across nation
The US Environmental Protection Agency (EPA) announced on Monday awards of nearly $1 billion to recipients across 37 US states selected for the agency’s Clean School Bus (CSB) Grants Competition, but an agency watchdog reported programme irregularities in an audit released at the end of December.
—————————————————
Premium job listings
- Director, Market Strategy & Engagement, Native – US (Remote)
- (Senior) Quantitative Carbon Market Analyst, Veyt – Oslo
- Feature Writer/Sub-Editor, Carbon Pulse – North America
Or click here to see all job listings
—————————————————
BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Climate lawsuits – COP28 could spur a wave of climate lawsuits, reports E&E News, as the deal’s language about shifting away from oil, natural gas, and coal strengthens evidence that burning fossil fuels is driving climate change and that failing to address it is increasingly seen as a liability, say legal scholars. The agreement reached in Dubai by nearly 200 countries calls for transitioning away from fossil fuels starting this decade, marking the first time the talks produced language explicitly identifying the need to cut fossil fuel use. Climate advocates will likely use it in courtrooms to push governments to cut their reliance on fossil fuel use or to halt new oil and gas project approvals, while it could also add weight to arguments highlighting the financial risk of hydrocarbon investment, say legal experts.
EMEA
Two presidents – UAE President Mohamed bin Zayed Al Nahyan and Azerbaijani President Ilham Aliyev met Tuesday in Baku to discuss bilateral cooperation, according to Middle Eastern newspaper Zawya. The UAE, which currently holds the COP28 presidency, and Azerbaijan, the incoming COP29 president, signed agreements including several on climate and energy: a letter of intent between the UAE Ministry of Climate Change and Environment and the Azerbaijan Ministry of Ecology and Natural Resources, a memorandum of investment cooperation in power transmission projects, a strategic collaboration agreement for green energy export, a roadmap for implementation of a 1GW renewable energy project, and a strategic cooperation agreement between the Abu Dhabi National Oil Company (ADNOC) and the State Oil Company of Azerbaijan Republic (SOCAR).
Oil vote delay – Controversial UK government legislation designed to require annual rounds for new oil and gas licences was delayed late on Monday night to avoid it being rushed through its first stage with scant debate as MPs discussed other issues. Government spokesperson Marcus Jones told the lower chamber that the bill debate and vote would be rescheduled, with this expected to take place within two weeks. The legislation has already triggered the resignation of former net zero tsar Chris Skidmore as a Tory MP. (Press Association)
Delisting aborted – Dutch Green Business (DGB) Group NV has secured its continued stock listing on Euronext Amsterdam, the carbon project developer announced Tuesday. The company was facing an expulsion from the bourse as firms in the Netherlands struggle to obtain a Public Interest Entity (PIE) audit firm under new requirements. DGB said it has received an assignment letter from a European PIE audit firm, halting its delisting process. DGB added that it will remain in the JG trading group of Euronext Amsterdam until the 2024 audit is completed.
Climate opposition – A record number of UK newspaper editorials opposed climate action last year, citing the cost of net zero and lambasting climate activists, according to new analysis by Carbon Brief based on hundreds of UK national newspaper editorials. Newspapers such as the Sun and the Daily Mail published 42 editorials in 2023 arguing against climate action – nearly three times more than they have printed before in a single year, it finds. Such editorials called for delays to UK bans on the sale of fossil fuel-powered cars and boilers, which they say lead to higher costs for consumers, and more oil and gas production in the North Sea, with Sunak performing an about-turn in September on some of the government’s major net zero policies in response.
Critiquing critiques – An independent carbon markets consultant and former director of a key Swiss industry group has objected to NGO analysis critiquing the world’s first Article 6 transaction, according to Climate Home News. Mischa Classen, who used to head up the KliK Foundation – the Swiss partner in the deal – disagreed on Tuesday with analysis by Swiss NGOs Alliance Sud and Fastenaktion, which had alleged that the Switzerland-Thailand carbon deal lacked additionality. “From my knowledge, Thailand has no policy intervention that would support private bus operators to switch to electric, which is the main additionality argument in this project,” Classen stated. “There’s no economic reason for a private company to use [electric] buses that are more expensive than others,” he added. Classen’s quote does not address the report’s other arguments regarding lack of publicly available calculations to support the Swiss investment, or existing tax advantages in Thailand for the manufacture of batteries and electric buses. The NGO report was originally released during COP28 in Dec. 2023, on the eve of the Swiss-Thai transaction in Jan. 2024. A spokesperson for the Swiss government recently told Carbon Pulse that Switzerland intends to continue striking and implementing Article 6.2 deals despite stalling UN negotiations.
ASIA PACIFIC
Batteries galore – Epic Energy has announced plans to build a 220 MW DC grid-scale battery in Mannum, South Australia at a cost of A$130 mln ($87 mln), joining a plethora of other battery developments across the state. Epic CEO Clive D’Cruz said the standalone project would create much needed energy storage to support the excess of renewable energy to the grid during peak periods and enhance stability. The project is slated for completion in Q2 2025.
Biodiesel expansion – Japanese trading house Sumitomo is looking to mass-produce biodiesel using wood and sugarcane waste, with plans to kick off a demonstration plant in 2025 on the southern island of Tanegashima, Nikkei reports. The company aims to gradually increase biodiesel output from fiscal 2027 and eventually lift the annual capacity to 1 mln tonnes, equivalent to 5% of Japan’s 2022 automotive diesel consumption (20 mln tonnes), according to the report.
AMERICAS
Hedging bets – In Canada, some oil and gas companies are delaying emissions reductions until they know the fate of the sector’s emissions cap, Reuters reported in Dec. 2023. The cap was announced during COP28 with reporting requirements to begin in 2026, but the possibility of a change in government given an election scheduled for 2025, could reverse climate policy in the country. “If we get to where we’re having to spend a lot of money to become way more draconian with our reductions, then we’re going to look at the federal election and go, ‘Yeah no we’re not spending that money, no way.’ Because our fervent hope is (Trudeau) is gone,” Jim Evaskevich, CEO of oil and gas firm Yangarra Resources, told Reuters.
Mexican mystery – The Ministry of Environment of the Mexican state of Nuevo Leon has not shown full transparency in disclosing the 2023 revenue from the state’s green tax, including from which companies the revenue came from, Telediario reported Tuesday. Alfonso Martinez, head of environmental ministry, said this is the case because the Ministry of Finance and the state’s General Treasury are responsible for management of the revenues, and that his agency can only request environmental projects be carried out, but it will look into the situation. It is the second fiscal year of the tax, which is charged to companies, quarries, and factories with higher-than-average pollution. Investments from the revenues already disclosed by Martinez include investment of 23 mln pesos ($1. 36 mln) in the rehabilitation of squares, medians, and recreational sites, as well as the planting of more than 300,000 trees and cleaning up of the Pesqueria River.
WA linkage – Washington Senate saw its first reading of a bill Tuesday that would formalise linkage of the state’s carbon market with the California-Quebec market. SB 6058, put forward by Senator Joe Nguyen (D) at the request of the Department of Ecology (ECY), does not see substantial differences from prior ECY analysis, decision, and a draft bill with amendments filed throughout fall 2023. The bill is scheduled for public hearing in the Senate Committee on Environment, Energy, and Technology on Jan. 12.
Communicating costs – A bill prefiled Dec. 28 in the Washington House of Representatives would require the Department of Agriculture to produce and provide stickers for motor fuel pumps that communicate federal and state fuel tax rates, alongside the cost of compliance with the Washington’s Climate Commitment Act that legislates the state’s cap-and-trade programme. The cost of compliance would be calculated by sum of the price of allowances sold during the year, divided by the number of allowances sold to represent the price per metric tonne, followed by calculations to provide the cents per gallon. It would also require government employees who conduct fuel pump inspections to verify that stickers are displayed. The bill was sponsored by Representatives Goehner (R), Barkis (R), Christian (R), Jacobsen (R), Graham (R), Cheney (R), Sandlin (R), Caldier (R), Hutchins (R), and Couture (R).
Repeal ordeal – Washington Secretary of State Steve Hobbs announced Tuesday that he has given preliminary certification for six ballot initiatives that were submitted to his office last year, including one to repeal the state’s cap-and-trade programme. Officials are now conducting signature verification for the initiatives based off a 3% random sample of signatures. If officially certified, the state legislature can either approve the initiatives, individually reject them, or pass modified versions of them. If the legislature does not approve the initiatives, they will be placed on the ballot during this November’s election.
Rehearing refineries – The Renewable Fuels Association (RFA) has requested a rehearing of a court decision that overturned the EPA’s rejection of 100 small-refinery waiver requests to the Renewable Fuel Standard (RFS). The RFA asked the US Court of Appeals for the Fifth Circuit for a rehearing of a challenge brought by oil companies. The Fifth Circuit had previously determined it was the proper venue for a challenge brought by six small refineries, overturning the EPA’s denial of exemption requests. RFA argued that the Fifth Circuit erred in choosing the venue, insisting that challenges to EPA decisions on small-refinery petitions should be heard exclusively by the Court of Appeals for the District of Columbia Circuit. RFA highlighted the Clean Air Act’s specification that the DC Circuit is the appropriate court for challenges involving nationally applicable EPA actions. The associated called for a rehearing to prevent adverse consequences to the RFS program, biofuel producers, and to uphold precedent on the Clean Air Act’s venue provisions.
Atlanta e-bike allocation – Atlanta will subsidise electric bikes for city residents over the age of 18 up part of a new programme to cut down on traffic congestion and reduce GHG emissions, The Atlanta Journal-Constitution reported Monday. The City Council voted on Monday to put $1 mln into the programme, which should go into effect by spring. Three-quarters of the rebate funds are reserved for those earning at or below 80% of the region’s median household income, currently about $54,000 a year for one person or $77,000 for a four-person family. Income-qualified residents are eligible for a $1,500 instant rebate on a standard e-bike and $2,000 for a cargo e-bike. Residents who do not qualify for the larger discount based on income can still get $500 for a standard e-bike and $1,000 for a cargo e-bike. The programme is being administered by the Atlanta Regional Commission (ARC) and Propel ATL, a transit advocacy group, using local taxpayer dollars donated by the city. Atlanta joins cities such as Denver and Boston that have launched their own e-bike rebate programs, which Bennett Foster, who works in mobility at ARC, showcase promising models for the Atlanta programme.
It matters – US-based carbon credit marketplace Matter Now has acquired Cathbad House, which provides training courses aimed at helping farmers, foresters, and small- to mid-size businesses generate credits. The companies said this strategic move aligns with Matter Now’s vision of integrating advanced technology for environmental sustainability and broadens its capacity to educate and empower more participants in the carbon market.
INVESTMENT
Expanding Xpansiv – Market infrastructure provider Xpansiv, the owner of the CBL spot exchange, has acquired a minority interest in Evident, a certification company for clean energy, such as International Renewable Energy Certificates (I-RECs). The investment will enable Evident to continue its expansion into new regions and products, including Sustainable Aviation Fuel (SAF), green hydrogen, biomethane, and carbon removals. In June, Xpansiv, together with Evident and the I-REC Standard Foundation, launched trading of I-RECs on Xpansiv’s CBL spot exchange. Over 120,000 I-RECs from projects in 10 countries have traded on CBL since the launch. The global market is expanding fast. Nearly 300 million I-REC certificates were issued on the Evident registry last year, up from 198 million in 2022, and 71 million in 2021. Redemptions were also sharply higher with 176.5 million certificates redeemed last year, nearly double 2022’s 97 million total, and nearly four times 2021’s 48 million volume. Currently, 12 carbon and renewable energy registries, which issued more than 60% of North American RECs and 85% of carbon credits globally in 2022 run on Xpansiv infrastructure, the company claims.
AND FINALLY…
Listen all y’all – An important gas pipeline in Schleswig-Holstein, Germany, currently under construction, is suspected to have been sabotaged, potentially causing damages of at least €1.6 mln, as reported by Der Spiegel. The pipeline, intended to connect the LNG terminal at Brunsbuttel to the regional gas grid, has been targeted by unknown perpetrators who drilled holes in at least eight places. This pipeline is crucial for Germany’s energy infrastructure, especially since the LNG terminal has been operational since early 2023, but lacks sufficient grid connection for full capacity utilisation. The Federal Prosecutor’s Office is investigating the incident as anti-constitutional sabotage. This event adds to a series of critical energy infrastructure sabotages, including the significant destruction of the Russian-German Nord Stream gas pipeline in 2022. The damaged German pipeline has been a point of contention, with NGOs, researchers, and resident groups criticising the government’s push for increased LNG import capacity, which they deem excessive given the expected decrease in gas demand and existing capacity in neighbouring countries. (CLEW)
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
