Newsletters > CP Daily: Monday January 15, 2024

CP Daily: Monday January 15, 2024

Published 01:34 on January 16, 2024  /  Last updated at 01:36 on January 16, 2024  / Carbon Pulse /  Newsletters

A daily summary of our news plus bite-sized updates from around the world.

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TOP STORIES

Coal unions, an uncooperative president stand in the way of Polish climate ambitions

The Polish government will have to tackle powerful coal unions and appease an uncooperative president in order to follow through on intentions to set an end date for coal and target climate neutrality by 2050, according to experts.

Carbon Pulse appoints new European editorial management team as co-founder departs

Carbon Pulse has grown its European editorial management team with two new hires and an internal promotion, as the company prepares for the departure of one of its co-founders.

EMEA

ArcelorMittal and France to invest €1.8 bln to cut steel emissions

The world’s second-largest steel producer ArcelorMittal and the French state will invest €1.8 billion to reduce the carbon footprint at its two primary steelmaking sites in France, shaving the country’s industrial emissions by 6%, the French economy and energy minister has said.

Aiming for 1.5C could save the EU at least €1 trillion by 2030, says report

Adopting a 1.5C compatible pathway could save the EU at least €1 trillion by 2030, making climate action not just necessary but economically imperative, and this will mean aiming for net zero emissions by 2040, according to an NGO report published on Monday as environment ministers gather in Brussels to discuss post-2030 climate ambition.

EU climate progress beyond pure emissions tracking is still a “blind spot”, say researchers

Climate action in the EU is still underreported, especially information that goes beyond pure emissions data to provide insights on longer term trends, a report showed on Monday.

Experts urge EU to see 2040 climate target as economic and security problem

The European Commission should grab the opportunity to propose the EU’s 2040 climate target by approaching an upcoming deadline as an economic and security choice, a pan-European think tank has said ahead of the release expected in a few weeks.

Euro Markets: EUAs snap five-day losing streak as auction triggers buying after new 15-month low

European carbon prices rallied strongly on Monday afternoon as buying interest emerged after prices had earlier dropped to a new 15-month low, and the first auction of the year cleared in line with the secondary market, while traders reported a technical bounce with the benchmark having dropped nearly 20% since the start of the year.

FEATURE: Scottish landowners could switch from shooting revenue to environmental markets via new bill

New environmental laws in Scotland including a new bill to curb predator control could eventually see large landowners retreat from grouse shooting and embrace carbon or biodiversity credits as alternative income sources.

AMERICAS

John Kerry to step down as US climate envoy

John Kerry will leave his posting as the Biden administration’s climate envoy in late winter or early spring, multiple media sources have confirmed.

Utility cannot charge Wyoming consumers for compliance with Washington cap-and-trade programme

A US west coast power producer was unsuccessful in its attempt to cover the cost of compliance with Washington’s Climate Commitment Act (CCA) through a rate increase for Wyoming consumers, in a decision by state utility regulators in January.

Research shows US east-west forest health diverging under climate stress

Forests in the western US are absorbing less CO2 due to more severe climate change impacts, while those on the eastern side of the country are growing slightly faster thanks to more favourable conditions, scientists have found.

Quebec scales down free allowances, rise in recipient entities in 2024

Quebec’s initial free allowance distribution for 2024 regressed slightly from the previous year, even as the number of industrial cap-and-trade emitters receiving allocation increased, according to data published Monday by the province’s environmental ministry.

ASIA PACIFIC

Cambodia, GGGI finalise operations manual for Article 6 trading in the country

The Cambodian government has approved an operations manual to implement Article 6 carbon crediting projects, as two Verra-listed projects in the country were granted permission to sell correspondingly adjusted (CA) credits, according to their developer.

Australian industry associations, companies, unsupportive of climate policy despite headline messaging, analysis finds

Australia’s most prominent companies and industry associations are failing to translate their headline climate aspirations into actions that support national policies to address it, a report released Monday found.

Australian gas company set to restart LNG, CCS work after court win

Australian oil and gas company Santos has won its second court case against Traditional Owners and can proceed with gas pipe-laying at its Barossa gas project and the associated carbon capture and storage (CCS) project.

NZ govt coalition party publishes draft offshore mitigation bill

The minor New Zealand government coalition party Act has released a draft bill for consultation to use offshore mitigation to meet its emissions targets as well as to allow emitters to use international carbon credits to meet their compliance obligations.

Korean power company to promote boiler project in Vietnam

A Korean power company is planning to make a foray into the international carbon market by implementing a boiler replacement project to help cut emissions in Vietnam.

INTERNATIONAL

Removals projects may thrive with int’l carbon markets but require public support -report

Carbon dioxide removal (CDR) technologies face significant barriers to scale, such as upfront capital needs and vastly different permanence and storage potential across activity types, but would grow with supportive policies for integration into carbon markets, according to a recent report commissioned by the Swedish government.

Accounting for Nature partners with Australian fintech firm to build platform linking environmental co-benefits with global carbon credits

Accounting for Nature (AFN) has partnered with an Australian technology solutions firm to develop digital infrastructure linking environmental improvements to eligible carbon credits, they announced Tuesday.

Japanese shipping major to conduct ocean thermal study in Mauritius under JCM

Japan’s Ministry of Economy, Trade and Industry (METI) has appointed a major shipping company to conduct research on the potential of ocean thermal energy in Mauritius as part of a broader programme to support the bilateral Joint Crediting Mechanism (JCM).

VOLUNTARY

VCM Report: Shell and signs of a REDD revival dominate voluntary carbon market

Shell’s ongoing retirement spree and signs of a REDD revival for fresh vintage credits dominated voluntary carbon market activity over the past week.

Libyan oil firm to plant 1 mln trees to generate carbon credits

A Libyan oil firm will embark on a reforestation initiative in the first quarter of 2024, aiming to plant one million trees and remove 10 MtCO2 once the programme is complete, it said over the weekend.

AI can help capture more CO2 with less energy, research suggests

Applying artificial intelligence (AI) at a coal-fired power station could help capture 17% more carbon dioxide while reducing energy use by 36%, according to research published Monday.

SHIPPING

Spanish ports may be buoyed by Algerian embargo on Moroccan shipments

Spanish ports may be buoyed after Algerian banks put an embargo on support for the transshipment of goods through Moroccan ports, countering the dampening effect Spain was expected to see from the extension of the EU ETS to shipping.

BIODIVERSITY (FREE TO READ)

Biodiversity credit listing on trading website sparks supplier interest

Around 10 biodiversity credit project managers have expressed interest in selling units via an online marketplace, following the listing of credits from a company with South American sites, Carbon Pulse has learned.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

Taxing disclosure – Edelman, the world’s largest public relations company, was among the Charles Koch Foundaton’s highest-paid vendors in 2022, a tax disclosure shows, alarming climate advocates, the Guardian writes. Partnering with a part of the Koch network, which has long worked to sow climate doubt, calls previous climate declarations by Edelman into doubt, says Duncan Meisel, executive director of non-profit Clean Creatives, which pushes creative agencies to cut ties with fossil fuel polluters. Edelman says its contract with the foundation ended one year ago.

COP29 Man-el – President of Azerbaijan Ilham Aliyev has signed a decree to establish the Organisational Committee for COP29, which will be tasked with organising this year’s annual UN climate summit, Azernews reports. Members of the committee will include Muhtar Babayev, Minister of Ecology and Natural Resources of Azerbaijan, appointed by the President for COP29; Jeyhun Bayramov, Minister of Foreign Affairs of Azerbaijan; and Mikayil Jabbarov, Minister of Economy of Azerbaijan. The 28-person panel features not a single woman, as several observers including the Guardian pointed out.

EMEA

Danish CCS – NCC Infrastructure has been contracted by Danish energy company Orsted to construct the foundations, buildings, and tubular bridges for the carbon capture and storage (CCS) facility at the Asnaes power station in Kalundborg, which is expected to capture 280,000 tonnes of CO2 annually. Orsted was commissioned by the Danish government last year to capture and store CO2 from its combined heat and power (CHP) plants, starting from 2025 as part of Denmark’s first full-scale CCS agreement, with additional funding set to come from Microsoft through the sale of carbon removal credits. The contracting of NCC marks the first stage in the establishment of large-scale CO2 infrastructure in Denmark, with work set to start in early 2024 and complete by end of 2025.

Back in the spotlight – Former Italy Premier and European Central Bank chief Mario Draghi met with company executives in Milan last week, fuelling speculation that he could be aiming for the post of European Council president as he undertakes research to forge a strategy to boost European competitiveness at the request of Commission boss Ursula von der Leyen. Current Council President Charles Michel has announced he plans to leave the post early to seek a seat in the European Parliament elections. The EU is struggling to maintain its competitiveness against ongoing competition from countries including China and the US, with Draghi meeting with managers who are part of the European Round Table of Industry, an advocacy group that brings together around 60 major European companies. He will then feed back on the meeting to commission members in Brussels and is expected to hand in his report after June’s European Parliament elections. (Bloomberg)

New nuclear – The Sizewell C nuclear project in southeast England has taken a key step forward with the award of a Development Consent Order (DCO), paving the way for formal construction work to get underway at the Suffolk site, reports BusinessGreen. The nuclear plant expected to deliver up to 24 GW of low-carbon nuclear power to the UK by 2050 is yet to reach financial close, however, with objections to the project remaining in some quarters. The government and developer EDF launched a fresh push in the autumn to bring new investors into the multi-million-pound project set to provide up to 7% of UK power supply, and discussions are still ongoing.

Mint conditions – Canon has partnering with Saudi Arabia’s Arab National Bank to fully offset the bank’s carbon emissions from printing operations, the pair said in a statement. This initiative, a first of its kind in the Middle East, extends to ink, paper, and electricity usage within print operations. The scheme helps companies neutralise their emissions by investing in carbon credits, with Canon investing in a variety of Gold Standard-certified projects for such purposes and also focusing also on efficient, low-carbon products and smart tools to reduce emissions at source.

Writing on the wall – Bulgaria’s coal chapter is drawing to a close, according to remarks by the country’s climate minister on Monday, reported by Reuters. “There’s no chance for Bulgarian coal to operate materially after 2030,” said minister Julian Popov. “Most of the coal operators are private companies,” he added. “They are operating at a loss… the market is kicking them out.” While emergency energy reserves remain important, Popov continued, increasing renewable energy capacity and green technology development will soon render this high-emitting fossil fuel obsolete. The EU announced €1.2 bln in Dec. 2023 to support a just transition of the coal workforce and install renewable energy in three regions of the Eastern European country.

ASIA PACIFIC

Tightening the screws – The Australian government wants to tighten the Petroleum Resource Rent Tax to stop offshore oil and gas companies claiming feasibility studies as a tax deduction, Renew Economy reports. Treasury launched a consultation Monday on the new legislation, which would clarify what exploration and development is, and that feasibility studies are not part of those. According to the new rules, exploration would cover the discovery and identification of the existence, extent, and nature of the petroleum resource, and that work done to decide whether its commercially viable to extract it would be outside these terms. Under the current rules, oil and gas companies are allowed to carry forward the expenses they spend on exploration and development before they start making money from production and deduct these from future tax liabilities.

Think twice – Japan’s rising demand for wood pellets – a type of biofuel used as an alternative to fossil fuels – is reportedly having a harmful impact on Canada’s forests, according to the Japan Times. As the Japanese government plans to have biomass contribute 5% of the country’s power needs by 2030, wood pellet imports from Canada have increased rapidly over the past few years. Amid concerns over forest exploitation and environmental destruction, experts have warned that British Columbia’s overstretched, declining forestry sector may not be able to provide a steady supply of wood pellets for long. In addition, woody biomass fuels like wood pellets release a large amount of CO2 during combustion due to lower energy density, the report said, citing research by British think tank Chatham House.

Keep up with the pace – State Grid, which supplies about 80% of China’s electricity, will maintain its annual investment budget at over 500 bln yuan ($70 bln) in 2024 in an effort to keep up with the nation’s clean energy expansion, according to state broadcaster CCTV and Bloomberg. China has accelerated its power network construction since 2021 as the nation connects giant renewable energy bases in remote regions to eastern megacities. Even so, China’s grid expansions are still falling behind the boom in renewables. Government data showed that investment in solar generation jumped 61% in the first 11 months of 2023, while grid spending only climbed 6% during the same period.

Climate-friendly lending – Country’s largest lender, the State Bank of India (SBI) has launched a fixed deposit scheme to mobilise funds for supporting environment-friendly initiatives and projects, local newspaper Mint reported. The product, SBI Green Rupee Term Deposit, will promote the growth of green finance ecosystem in India, thereby supporting the central government’s goal of becoming carbon neutral by 2070, the bank said.

AMERICAS

If a tree falls… – Deforestation in Brazil’s Amazon rainforest dropped by 50% in 2023 from the previous year to its lowest level since 2018, according to government data, in a clear win for President Luiz Inacio Lula da Silva in his first year in office, Reuters reported Friday. Lula has pledged to end illegal clearing by 2030, with his international reputation resting on the commitment. Some 5,153 sq. km (1,989.6 sq. miles) of the Amazon were cleared in 2023, a 49.9% drop from 2022, according to satellite data from INPE. That is still equivalent to more than six times the size of New York City, highlighting the ongoing challenges still faced by Lula in ramping up action on illegal logging. Meanwhile, deforestation in Brazil’s Cerrado region grew to the worst on record at the end of last year, according to government data. Deforestation in the mostly privately-owned biome surged over 200% compared to late 2022.

Monied middlemen – One of the world’s biggest green investment managers, Impax Asset Management, is voicing frustration with US President Joe Biden’s signature legislation, the Inflation Reduction Act (IRA), which the firm said has too many built-in hurdles that are enriching middlemen, delaying implementation, and leaving less money for green projects, Bloomberg reported Sunday. According to Charlie Donovan, senior economic adviser at Impax, the IRA’s clean energy tax credits are ““overly complex from a financial structuring point of view and not lending themselves very well towards a replicable, scalable system”. This has led to bankers and tax consultants enrichening themselves, as the system is dependent on them for implementation, Donovan argued. The firm hailed the IRA as a game changer shortly after it was unveiled, but since then, green investors have faced losses as higher interest rates and supply chain bottlenecks have hobbled clean-energy project finance, pummelling capital-intensive renewables sectors like wind and solar. Passed in August 2022, the IRA has triggered a global green energy race and is expected to supercharge US electricity sector emissions, according to the US Environmental Protection Agency (EPA), although the law alone is not enough for the US to meet its emissions reduction commitment under the Paris Agreement, an August 2023 report found.

Linkage question marks – A Washington House Environment and Energy Committee hearing on House Bill 2201 on Monday fielded similar feedback to requests for amendments that was heard at the Senate hearing on companion bill SB 6058 on Friday. Both bills introduce legislation with proposed changes to the state’s cap-and-invest programme required to facilitate linkage with the California-Quebec joint carbon market. Questions surrounding changes in definition to electricity importers, allowance purchase limits, and reduced environment justice revenues were some of the main concerns discussed at the hearing.

Another exemption – The Canadian Northwest Territories is in the process of creating its own exemption on the carbon charge to home heating oil, said Finance Minister Caroline Wawzonek. The federal exemption for home heating oil did not apply to the Northwest Territories as it follows its own carbon pricing legislation. The territory, which recently elected a new legislative assembly, looks to enact the same home heating oil exemption for itself as soon as possible, CBC reported Monday.

Research funding – The Canadian government announced up to C$772,000 ($575,000) in funding on Monday for environmental research at the Universite de Sherbrooke in Quebec. The allocations encompass up to C$400,000 over five years to study lake watersheds in the context of climate change, up to C$192,000 to research landfill bio-windows to reduce methane emissions from landfills, up to C$100,000 to identify key biodiversity areas in Quebec, and up to C$80,500 to investigate the impact of field data collection techniques on flood mapping results.

VOLUNTARY

Chemical bond forming – London-based carbon asset manage Carbonaires has secured a strategic investment from trader KTM Chemicals to help develop carbon and biodiversity credits within KTM’s distribution network and to the wider chemical sector, while also further developing KTM’s own Net Zero strategy. The move was announced in an emailed statement, no details about the size of the stake or the terms of the deal were given.

AND FINALLY…

Warm bytes vs frostbite – The vast amounts of energy needed to power the University of Edinburgh’s large computing facility are to be stored in disused mine workings and used to warm homes, in an inaugural system in the UK. At least 5,000 households in Scotland’s capital could be served by heat from the Advanced Computing Facility, which currently releases up to 70 GWh of excess heat per year. Once the UK government’s next-generation Exascale supercomputer is installed at the university, the excess heat generation could rise to as much as 272 GWh. It’s hoped that, if successful, the study could provide a global blueprint for converting abandoned flooded coal, shale, and mineral mine networks into underground heat storage.

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