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TOP STORY
ANALYSIS: Plethora of EU carbon purchasing strategies likely to emerge this year amongst shipping companies
Shipping companies will likely focus on covering their EU ETS obligations defensively in the first couple of years rather than actively managing their positions, while a variety of purchasing strategies will surface depending on the industry, commercial agreements, and size of their operation.
VOLUNTARY
ANALYSIS: Divisions emerge on the usefulness of SBTi emissions target-setting for corporate sustainability
The Science-based Targets initiative (SBTi), considered the gold standard of voluntary emissions target-setting, is provoking divided reactions from industry, NGOs, and academia as actors across the board contest the future of Paris-aligned corporate emissions targets.
Shell retires 3 million carbon credits in a day to keep December pace going
Oil major Shell has continued to retire high numbers of carbon credits this week, maintaining the market-leading pace it set in December that was enough to see the year’s total on major registries top the levels of the previous year.
Koko secures scalable debt facility linked to future credit cash flows
Carbon-financed clean cookstove provider Koko Networks has secured scalable, long-term debt from a commercial bank that recognises the value of the company’s future cash flows from carbon credit generation.
North America’s largest carbon offset developer names two new co-CEOs
North America’s largest forest carbon offset developer has promoted two employees to the roles of co-CEO.
AMERICAS
California Governor Newsom’s climate budget cuts show no sign of slowing in 2024
California Governor Gavin Newsom proposed on Wednesday funding cuts to climate programmes by 7% to make up for the state’s $37.1 billion projected budget shortfall, following last year’s 3% climate spending cutbacks.
Preliminary estimates show US emissions decline in 2023 for first time in two years –research firm
Preliminary analysis estimates that US greenhouse gas (GHG) emissions fell by almost 2% year-on-year (YoY) in 2023 driven largely by a cleaner power sector and lower energy use in buildings, breaking two consecutive years of rising national emissions, despite increases in emissions from the transport and industrial sectors, research published Wednesday showed.
Large CCU facility opens in Texas, converting CO2 to methanol
A new carbon capture and utilisation (CCU) project has opened in Texas, capturing some 180,000 tonnes of CO2 per year while producing 130,000 tonnes of methanol.
US ammonia production facility launches hydrogen technology to capture over 1Mt of CO2 yearly
A US infrastructure technology company announced Tuesday the first commercial deployment of its proprietary hydrogen technology in the production of low carbon ammonia that captures over a million tonnes of CO2 in the process.
US DOE grants $17 mln towards university-led decarbonisation research from minority serving institutions
The US Department of Energy (DOE) announced Wednesday an investment of $17 million in GHG emissions reduction research projects, with funding directed toward underserved communities at historically black colleges and universities and other minority serving institutions.
California allowance surplus bank could narrow, but CCA prices unlikely to reach ceiling –expert
Allowance budget cuts could bring down WCI market surplus bank by over 200 million, a conference heard Wednesday, but California Carbon Allowance (CCA) values will likely remain below the price ceiling.
California ARB begins 2024 with no new offset issuance
California did not issue any compliance-grade offsets for the first bi-weekly distribution of the year, marking the first instance of zero issuance in years as a number of credits were voluntarily retired and taken out of circulation, according to data published by the state regulator ARB on Wednesday.
EMEA
UK government to update nuclear regulation, explore building another large plant
The UK government is set to bolster its long-term ambition to quadruple nuclear energy output by 2050 with a new roadmap to ease the regulatory process and include next steps for exploring a large-scale plant that could be capable of powering six million homes, in addition to a push to build Small Modular Reactors (SMR).
Planning permission granted for first stage of UK-based 1GW blue hydrogen plant
A UK-based 1GW blue hydrogen production plant, to be constructed alongside an oil refinery that will see some of its captured CO2 also buried at sea, has received planning permission from local authorities.
German industry, green groups issue joint statement cautiously supporting carbon capture
An unlikely alliance of Germany industry, trade unions, and conservation organisations released a joint statement Wednesday proposing several “theses” to shape Germany carbon capture policy in the lead-up to an anticipated, far-reaching EU decision on this topic.
Euro Markets: Carbon falls for a third day as bearish sentiment spreads even as funds stand pat
European carbon prices extended their losses for a third day as bearish sentiment gathered momentum amid reports of compliance selling and utility fuel-switching from coal to gas, while the weekly Commitment of Traders report showed that commercial participants had added a hefty 40 Mt of short positions last week, while funds made minimal changes to their holdings.
ASIA PACIFIC
SK Market: Monthly KAU auction fails to sell out again amid permit oversupply
South Korea on Wednesday sold fewer than 50% of the allowances on offer in its monthly CO2 permit auction amid dwindling buy interest, with analysts expecting the carbon price to remain at relatively low levels this year due to a lasting oversupply.
Australia’s climate minister lashes opposition after MPs come out against setting 2035 NDC
Australia’s climate change and energy minister has called on the federal opposition to explain its climate policies and “stop the nonsense” following media reports that multiple Liberal and National MPs were opposed to Australia setting a 2035 emission reduction target.
Korean international development agency to halt Vietnam forest carbon fund –media
The Korea International Cooperation Agency (KOICA), a government-funded agency dedicated to granting international aid programmes, has decided to terminate a Vietnam-focused forest fund that can generate carbon credits, local media reported.
INTERNATIONAL
Global methane emissions could see significant drop with focused industry effort –report
Targeting the world’s top methane-emitting oil and gas fields could reduce global greenhouse gas emissions by tens of millions of tonnes within a year, according to new analysis.
US has both responsibility and capacity to lead loss and damage funding –experts
The US can better mobilise the global funding response to the impacts of climate change, experts at US-headquartered international non-profit Natural Resources Defense Council (NRDC) said in an opinion piece published Tuesday.
Climate change and nature loss seen as top global risks in the long term
The impacts of climate change and nature loss dominate the top risks over the next decade for experts across the private and public sectors, as the world approaches climate tipping points that could trigger further socio-environmental crises, according to the World Economic Forum (WEF).
Circular economy could abate most built environment emissions –report
The construction sector’s CO2 emissions could be reduced by up to 75% by 2050 by establishing a circular economy, which would also boost profits substantially, according to a report published on Wednesday that called for more scalable solutions.
SHIPPING
Report says small amount of ammonia hubs could drive shipping decarbonisation, despite toxicity
Green ammonia could supply a large amount of the world’s shipping fuel needs by 2050 at a cost of $2 trillion if 10 ‘hubs’ are created, according to a report released this week.
BIODIVERSITY (FREE TO READ)
Norwegian parliament votes for opening up Arctic for deep sea mining, despite opposition
Norway has given the go-ahead to open up for deep sea mining in the Arctic region after a vote in parliament Tuesday, making it the first country to open up its seabed to the controversial activity.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
International e-fuel – California-based e-fuels provider Infinium and Norwegian-based Mo Industrial Park have signed a Memorandum of Understanding to develop Norway’s first advanced eFuels production facility in Mo i Rana, Norway. Infinium eFuels are made using waste carbon dioxide (CO2) and renewable energy-derived green hydrogen and can help decarbonise hard-to-abate sectors including aviation and shipping. In neighbouring Sweden, an industry venture is looking to scale up industrial-scale production of fossil-free sponge iron — the precursor to green steel — thanks to the region’s easy access to hydropower, wind, and quality iron ore.
EMEA
Changing chiefs – Chris Stark will leave the Climate Change Committee after a six-year stint as CEO – acting as the chief climate advisor to government and parliament around the UK’s climate change ambitions. Stark will join the Carbon Trust as CEO later this year. Under his leadership since Aug. 2018, the Committee recommended the UK adopt a net zero target for GHG emissions by 2050, with the UK under Prime Minister Theresa May becoming the first country to put such a goal into law.
German state aid – Companies in Germany received more state aid during the energy crisis than all of the other 26 EU states combined, according to interim analysis by the European Commission seen by Handelsblatt. Germany doled out €72.8 bln in state aid between March 2022 and June 2023, out of €140 bln in total granted in the EU. Italy followed with €39.2 bln. Some 85% of the German subsidies went to two companies – Uniper and Sefe, a former Gazprom subsidiary nationalised by Germany in Nov. 2022.
ASIA PACIFIC
Dismissed – The Australian Federal Court has dismissed a historic legal challenge to the agreement that allows logging in north-eastern NSW native forests. The North East NSW Regional Forest Agreement exempts logging from federal environmental assessment under the Environmental Protection, Biodiversity Conservation Act. The Environmental Defenders Office represented the North East Forest Alliance (NEFA) challenging the agreement in court when it was renewed in 2018 for another 20 years. However, the court dismissed arguments that the Commonwealth did not assess climate change, endangered species or old-growth forests as it was required to. Justice Perry said such an assessment was not required, and in any event had occurred. The court did not make any finding in relation to the environmental sustainability of logging operations. NEFA President Dalian Pugh said the result was “extremely disappointing”, but vowed to fight on.
New partnership – Japanese project developer Bywill has formed a partnership with Sendai Bank to offer its services to the regional bank’s customers in creating environmental value, it announced Wednesday. Bywill, which aims to achieve carbon neutrality in all 47 prefectures of Japan, has secured similar deals with 26 other domestic financial institutions.
Not anytime soon – India’s G20 Sherpa and New-Delhi-based think tank NITI Aayog’s chief Amitabh Kant has told Financial Express that the South Asian country is not expecting any other country to join the Global Biofuel Alliance anytime soon, but the countries will join the alliance as soon as the recommendations are implemented. The alliance, formed during the G20 summit in September last year consists of 21 member nations, including the US and Brazil. The main aim for the formation of this alliance was to reduce the dependence on fossil fuels, with a focus of increasing private investments in clean energy to achieve the net zero emissions target. Indian Biogas Association’s Chairman Gaurav Kedia has also told the newspaper that the entire framework for the alliance will come out this year and that there would be more emphasis on ethanol, among other fuels.
Plant bamboo, save planet – The Indian state of Maharashtra has planned to have bamboo plantations covering 10,000 hectares of land to fight climate change, the state’s chief minister Eknath Shinde announced Tuesday, All India Radio News reported. Shinde said that bamboo’s capacity to absorb CO2 is greater than other trees, making it an effective tool to fight climate change. Shinde further added that bamboo is also used for the production of ethanol, biomass, and is useful even in thermal plants. Shinde also urged farmers to plant more bamboo as it is more profitable than growing sugarcane. Maharashtra is the second-largest producer of sugarcane in India.
AMERICAS
Watching the speculators – Two bills, first read Tuesday in Washington’s House, look to conduct analysis of and create tax exemptions for allowances under the state’s cap-and-trade programme. HB 2249, sponsored by Rep. Dye (R), would require the Washington State Institute for the Study of Public Policy to publish a report on any impacts on allowance prices as a product of including general market participants in auctions. Additionally, the bill stipulates for the Department of Ecology to publish the number of allowances purchased, percentage of auctioned allowances purchased, and percentage of auctioned allowances purchased over the compliance period by each general market participant, following each auction. The bill was transferred to the House Committee on Environment and Energy. Meanwhile, HB 2199, sponsored by Rep. Orcutt (R), would exempt past and future amounts received from the receipt, generation, purchase, sale, transfer, or retirement of allowances, offset credits, or price ceiling units from the business & occupation tax and the public utility tax. The bill was transferred to the House Committee on Finance.
Private discussions – A bill put forward in Washington Senate would authorise public natural gas utilities to discuss bidding of allowances under the state’s cap-and-trade programme in private via executive sessions, effectively addressing the conflict of requirement for public deliberations under the Open Public Meetings Act with the mandate to keep auction bidding information confidential as per the Climate Commitment Act. Conversely, investor owned utilities do not face this conflict as they are governed by a private board of directors and can thus keep discussions confidential. SB 6047 was sponsored by Senator Warnick (R) and saw its first reading Tuesday with referral to the Senate Committee on State Government and Elections.
Blue ammonia accelerated – Houston-headquartered technology and engineering company KBR announced Wednesday that it has been selected for a large, commercial-scale clean ammonia production and export project in the US Gulf Coast by Tokyo-based INPEX Corporation and Oklahoma City-based LSB Industries. Under the terms of the contract, KBR will provide technology licensing and proprietary engineering design for a 1.1 Mt/yr ammonia plant, designed to capture carbon while maximising yields. KBR claimed the move is part of its effort to implement what it called its “market-leading low-carbon blue ammonia technology”.
Water worries – A New York judge ruled Wednesday that food and beverage multinational Danone must face a lawsuit challenging its “carbon neutral” claim on bottles of Evian spring water, Reuters reported. Consumers in the proposed class action said they would not have bought Evian had they known that Danone’s manufacturing process allowed the release of CO2 into the atmosphere or otherwise caused pollution. The judge said “carbon neutral” was an ambiguous term that confuses consumers, and that the company “expects too much” for them to learn what Evian’s labels meant. They paid premium prices for Evian in 2022, mistakenly believing that the “carbon neutral” claim meant the water was more environmentally friendly. Danone said its use of the term reflected a certification from Carbon Trust, and that the plaintiffs’ view defied science and common sense. The judge ruled the plaintiffs may pursue fraud, unjust enrichment, and breach of express warranty claims, as well as claims under California and Massachusetts consumer protection laws, but dismissed claims under comparable New York laws, adding that plaintiffs may amend their complaint.
Rulemaking workshop – Oregon’s Department of Environmental Quality (DEQ) announced a workshop on Jan. 30 for the 2024 Clean Fuels Program (CFP) rulemaking. Topics at the workshop will include revising the OR-GREET model used for fuel carbon intensity calculations, updating Third Party Verification rules for CFP reports, and proposing other rule modifications based on implementing the programme since the last rulemaking, DEQ said in the press release Wednesday.
More CO2 needed – Trade group Compressed Gas Association (CGA) announced the launch of the CO2 Solutions Coalition to “educate lawmakers, regulators, and the public about the necessary and beneficial uses of CO2 in diverse and essential applications across the economy”, in a press release Monday. The US coalition seeks to actively engage with lawmakers, regulators, and relevant stakeholders to advocate for maximising CCU technologies to prevent CO2 shortages for essential industries, the group said.
AND FINALLY…
The choice is yours – That’s how Saudi Arabia’s energy minister, Abdulaziz bin Salman, sees the COP28 agreement’s call on governments to contribute to eight global efforts, including to transition away from fossil fuels in energy. At a forum in Riyadh on Wednesday, bin Salman pointed to an image of the COP28 text and said “all of these eight items you have in front of you are choices – that’s why I call it a la carte”, according to Climate Home News. He also stressed that there is a difference between “transitioning away from” and “phasing out” fossil fuels. “There are people that are transitioning because they want to change their energy mix like us and there are those who believe that they should transition away because they don’t want to use fossil fuels.”
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