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TOP STORIES
EU to start work on CO2 transport rules under ETS, draft suggests
The European Commission will start work on a CO2 transport regulatory package under the ETS, according to a leaked draft of the upcoming industrial carbon management strategy (ICMS) seen by Carbon Pulse on Wednesday.
EU Parliament votes to ban ‘misleading’ carbon neutral claims
Companies in the European Union will be banned from misleadingly marketing their goods as “carbon neutral” if they rely on offsets, under a law endorsed by EU parliamentarians on Wednesday.
ASIA PACIFIC
Certifier confronts Sri Lankan govt fund over unauthorised use of REDD+ methodology
Voluntary carbon market certifier BioCarbon Registry (BCR) has written a cease-and-desist letter to the Sri Lankan Climate Fund (SLCF) after learning that the government-backed programme was using its REDD+ methodology without permission to credit projects.
Malaysian developer launches avoided deforestation methodology
A Malaysia-based carbon offset developer has launched an avoided deforestation methodology for project developers to create high-quality carbon credits through the protection of forests.
China’s thermal power growth outpaces total output in 2023, coal production hits record high
Growth in China’s thermal power generation in 2023 outpaced the growth of total power output amid continued coal expansion and a shaky economic recovery in the world’s biggest emitting nation, government data showed Wednesday.
Korean water utility to develop direct air capture pilot
A state-owned water supplier in South Korea has teamed up with a California-based company for a pilot project developing direct air capture (DAC) installations, which the companies claimed to be the world’s first-of-its-kind facility for water recovery and carbon removal using a seawater desalination plant.
Nestle, partners progress ACCU project as part of global reforestation programme
Global food and drink conglomerate Nestle has planted 350,000 trees at an estate in southeastern Victoria that will earn Australian Carbon Credit Units (ACCUs), as part of a broader worldwide reforestation effort.
Philippines govt weighs carbon pricing instruments
The Philippines has concluded a technical working group with the World Bank in preparations for the introduction of carbon pricing instruments, though the timeline for policy progress still remains unclear.
INTERVIEW: RECs to be major component of STX Asia-Pac expansion
Amsterdam-headquartered STX is expanding its presence in the Asia Pacific from the Singapore headquarters it established in 2021, seeing a strong pipeline of growth with a focus on renewable energy.
Jarden head of commodities “on gardening leave” as merger looms
The head of New Zealand’s Jarden Commodities has left the company and is currently on “gardening leave”, as parts of the wider company are set to merge with several financial entities.
EMEA
Euro Markets: EUAs tumble to settle at two-year low as aggressive selling drives market down 3.7%
EU carbon fell to its lowest settlement price in more than two years on Wednesday, as the afternoon brought sustained and aggressive selling after a flat morning session, in which traders digested the weekly Commitment of Traders report that showed investment funds rebuilding their short positions.
Last year’s drop in industry and power emissions depresses 2024 EUA price outlook –analyst
EU ETS emissions in 2023 are likely to have fallen by around 23% in the power sector, and by around 5-6% in the industry sector, with the resulting weakness leaving the EUA price outlook for 2024 close to current depressed levels, according to a market analyst.
EU needs to align ETS and policies with fossil fuel phaseout -scientific advisory board
More work is needed across all sectors to achieve the EU’s climate objectives out to 2050, including adjusting the ETS and making policies fully consistent with a fossil fuels phaseout, according to the board of scientists advising the bloc on climate change.
Swiss carbon capture firm announces next round of funding
A Swiss carbon capture firm has opened its next series of funding in order to expand its operations and add new storage sites across Europe and the UK, it announced on Wednesday.
AMERICAS
“Fundamentally flawed” or “perfectly sensible”: Chevron doctrine cases see SCOTUS reconsider interpretation of federal law
In two US Supreme Court cases whose outcomes could impact the enforcement of environmental law, justices are questioning the balance of power between the judiciary and executive branches in implementation of federal legislation.
Central US state senators introduce bill banning CO2 pipelines
Lawmakers from a central US state that previously prevailed in fossil fuel pipeline battles introduced legislation to prohibit the transport and storage of carbon dioxide.
Viability of certain CCUS projects hinges on higher carbon price, technology improvements -report
Carbon capture, utilisation, and storage (CCUS) projects stemming from exhaust streams of natural gas driven compressors will not be economically viable until higher carbon prices are realised in the US and Canada, although emerging technologies also show promise in reducing cost, according to a report published Wednesday.
RGGI Q1 auction volumes drop nearly 30% after Virginia’s exit
The RGGI states reduced allowance volumes offered at the first auction of 2024, following the departure of Virginia from the power sector cap-and-trade scheme at the end of December, a notice showed Tuesday.
Australian oil and gas giant invests in US university-led decarbonisation accelerator
Australian oil and gas company and a US university have entered into a five-year partnership to reduce greenhouse gas emissions and advance low carbon solutions, the academic institution announced Wednesday.
INTERNATIONAL
Davos 2024: US Energy Transition Accelerator offers a key tool to meeting goal to triple renewables by 2030 -Kerry
The US-led Energy Transition Accelerator (ETA) jurisdictional carbon crediting mechanism to phase out coal globally could be a key lever to helping reach the goal to triple renewables to at least 11,000 GW globally by 2030, said outgoing US climate envoy John Kerry in Davos on Wednesday.
VOLUNTARY
Newer vintages play increasing role in voluntary carbon market, say analysts
Newer carbon credit vintages played a significantly more influential role in the voluntary carbon market (VCM) in 2023, as increased buyer scrutiny and the diminishing role of older credits looks set to signal an important trend change, analysts have said.
Trailblazing carbon removal buyers start to worry about price per tonne
Startups in the durable carbon dioxide removal (CDR) market face a race to drill down production costs after price per tonne topped a poll as the key factor for buyers, in a 2024 outlook published Wednesday.
Voluntary carbon marketplace partners with another credit ratings agency
A UK-based voluntary carbon credit marketplace announced another partnership with a ratings agency on Wednesday.
US carbon marketplace startup partners with Brazilian NGO to generate smallholder farm offsets
A California-headquartered startup announced Wednesday a partnership with a Brazilian civil society organisation to bring carbon credits directly from Brazilian smallholder farmers to market.
Report finds 92% of firms do not have net zero target in place
A large voluntary carbon market project developer and advisory firm has found that the vast majority of surveyed companies still do not have a net zero emissions target in place, with ‘greenhushing’ seen as an increasing trend, in a report published this week.
German DAC firm and Canadian carbon project developer collaborate on new facility
A Montreal-based carbon removal project developer has partnered with a Germany-based direct air capture (DAC) company to install a new carbon removals facility in Canada, they said Wednesday.
Dutch project developer upgrades carbon credit issuance outlook
A Dutch carbon project developer has updated its credit pipeline outlook, marking a 58% year-on-year rise with delivery volume reaching 1.8 million tonnes in 2030, it said in an update.
Environmental commodities investor launches, targets provision of high-quality carbon credits
A new environmental commodities investment company has launched with the aim of delivering flexible financing options for carbon removal and reduction projects and access to high-quality carbon credits at scale.
BIODIVERSITY (FREE TO READ)
Davos 2024: TNFD pushes for Indigenous participation in biodiversity credits
Indigenous Peoples must be involved in shaping the nascent biodiversity market, the Taskforce on Nature-related Financial Disclosures (TNFD) co-chair has said.
Davos 2024: Global miners vow to halt biodiversity loss, restore landscapes
A group of companies making up a third of the global mining and metals industry on Wednesday committed to taking actions that will halt their negative impact on biodiversity by 2030 and support a nature positive future.
Davos 2024: Nigerian vice president backs smallholder sustainable agriculture
Sustainable agricultural practices focused on smallholder farmers can help produce more food while caring for the land, Kashim Shettima, the vice president of Nigeria has said.
Peatlands nature market to mature between between 2030 and 2050, report predicts
The peatlands finance industry should mature between 2030 and 2050, including investments in biodiversity credits bundled with water-related payments, a report has said.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Tricky waters – Maersk CEO Vincent Clerc said in at the World Economic Forum in Davos that the disruption to global shipping caused by the attacks on vessels in the Red Sea will probably last at least a few months, Reuters reports. Maersk and other large shipping lines have instructed hundreds of commercial vessels to stay clear of the Red Sea, sending vessels on the longer route around Africa in response to attacks on shipping by Iranian-backed Houthi militants. Read the Carbon Pulse analysis of the impact on EU ETS emissions.
Big talk – The World Economic Forum, supported by private sector and philanthropic partners of the Giving to Amplify Earth Action initiative (GAEA), announced at Davos new commitments to unlock billions of dollars to finance climate and nature solutions. Partners will launch a corporate philanthropy challenge to mobilise $1 bln of capital towards climate and nature interventions by 2030. GAEA also announced a ‘Big Bets Accelerator’, which will amplify and accelerate innovative public-private-philanthropic partnerships globally. Last January, GAEA launched a call to action to partners to design a global initiative to fund and grow new and existing partnerships to help capital to reach net zero, reverse nature loss, and restore biodiversity by 2050. The initiative said it has now identified 31 global investment opportunities for public-private-philanthropic collaboration. These include projects that focus on phasing out coal, creating sustainable rice value chains, advancing clean cooling options, increasing uptake of green steel and electric vehicles, and scaling up offshore wind power.
Misleading claims – A special edition of the Corporate Climate Responsibility Monitor finds that renewable electricity targets from 10 major companies in fashion and tech don’t quite live up to the hype, according to a New Climate Institute summary. Many companies’ claims of using renewable electricity are misleading because they rely on Renewable Energy Certificates (RECs) that do not contribute to additional renewable capacity, such as companies using RECs generated in one country to claim renewable electricity in another. Although some companies are transitioning to higher quality procurement instruments like power purchase agreements (PPAs), more efforts are needed to fully decarbonise power systems, such as by incentivising companies to strive for higher quality renewable electricity strategies. Pioneering companies like Google and Microsoft are leading the way by matching their electricity consumption with renewable generation on an hourly basis, which is more effective than annual matching and promotes the development of new renewable energy technologies.
EMEA
Gas resilience – The EU is projected to end winter with gas stores over half full, despite reduced supplies from Russia. The European Commission anticipates that gas facilities will be 54% full by the end of March, assuming a 15% reduction in demand. However, a return to normal demand is still not feasible in the medium term. Although alternative gas sources have been identified, risks persist, particularly related to supply disruptions from conflicts in the Middle East. Last year, only one in 20 units of energy consumed in the EU came from Russia, compared to one in every five units back in 2021, said Commission President Ursula von der Leyen during a speech at the World Economic Forum in Davos, as reported by Bloomberg. That said, Russia remains the region’s second-biggest supplier of LNG after the US.
Hydrogen dreams fade – Germany’s prolonged government budgetary crisis is putting in question its plans to supplement a fully renewable-powered energy system by 2035 with hydrogen-fired plants, according to Sigfried Russwurm, president of industrial association BDI. Despite “promised decisive breakthroughs” on a power plant strategy in 2023, “none of the necessary issues have been clarified”, Euractiv reported Russwurm as saying this week.
Guterres’ reflections – Asked in Davos to reflect on the state of the world, Antonio Guterres led with talking about climate change and the need to phase out fossil fuels. “As the climate breakdown begins, countries remain hell bent on raising emissions. Our planet is still heading for a scorching 3C rise in global temperatures. Droughts, storms, fires, and floods are pummelling countries and communities,” the UN secretary-general told the World Economic Forum’s annual meeting on Wednesday. “2023 went down as the hottest year on record, but it could be one of the coolest years in the future.”
Late notice – The Dutch minister of climate and energy has written to request the Senate to promptly discuss the bill for the implementation of the revised directive of the EU ETS, according to a letter published Wednesday. The deadline for transposition into national legislation and regulations was the end of 2023, to ensure a harmonised European implementation from the start of 2024, but as this deadline has been exceeded, the government has already received an infringement notification from the European Commission, minister Rob Jetten wrote. “The government is committed to timely implementation of European guidelines in the Netherlands, I would therefore request that you consider the bill as soon as possible,” he said. The longer the implementation deadline is exceeded, it becomes less and less certain that the Dutch national authority will be able to collect all information in a timely manner to calculate the number of free allowances and issue the permits. Finally, building on the infringement notification, the European Commission may decide to initiate an infringement procedure, which may result in a penalty payment, Jetten added.
New boss – BP has appointed interim boss Murray Auchincloss as its permanent chief executive, in a move that signals the oil major will stick with the shift to greener energy launched by his predecessor Bernard Looney, the FT reports. The UK-listed energy major conducted an internal and external search for a replacement for Looney, who quit in September after failing to disclose past relationships with company colleagues.
Open goal – UEFA is set to invest some €7 mln in environmental projects spearheaded by amateur football clubs across Germany, as part of a plan to offset the carbon footprint of the Euro 2024 tournament, Edie reports. The football governing body will make the funding available on a competitive basis through a new ‘climate fund’ launched earlier this month, they said. For every ‘unavoidable’ tonne of CO2e emissions set to be generated throughout the Euro 2024 tournament this summer, UEFA will add €25 to the fund. Pre-event emissions projections would bring the likely total available to around €7 mln.
Two become one – German energy market consultancy Energy Brainpool is now part of the Montel Group from Norway. Montel, the Norwegian energy and electricity market information provider, offers a wide range of energy information services. The transaction, led by global investor Riverside, will enable Montel to expand its product portfolio, expand Energy Brainpool’s offerings into new geographies, and leverage both companies’ data sets and capabilities to meet the growing needs of the energy market, the firms said in a release.
See you in September – The World Bank-supported Innovate4Climate event (I4C) will take place in September this year, in a yet-to-be-announced location in Germany. A source involved in the event’s planning said it would probably be Berlin. The annual event has previously been held in May, typically either in Germany or Spain – the two governments that co-host the conference series. I4C brings together the public and private sectors “to turn up the volume” on innovative climate solutions across finance, markets, policy, and technology. Participants have the opportunity to connect with leaders driving climate ambition, learn about cutting-edge approaches to accelerate climate action, and identify new investors, customers and partners. I4C took place in Bilbao in 2023, and was held virtually in 2022 and 2021 due to the pandemic.
ASIA PACIFIC
At least – Australian Teal MPs are demanding Australia set a 75% emissions reduction target for 2035, saying they would campaign on these targets at the next election, The Australian Newspaper reports. Independent MP’s Kylea Tink, Kate Chaney, Allegra Spender, Zali Steggall, and Zoe Daniel, argued that Australia needed to drive global ambition in combating climate change as a rich nation, rather than simply aligning with international benchmarks. The Labor government is expected to set its 2035 NDC by February next year, according to the rules of the Paris Agreement. It comes as multiple Coalition opposition MPs have voiced their opposition to such a target.
Indonesian U-Turn – Indonesia will scrap the renewable energy target it was set to meet next year, revising down its ambitious 23% penetration to 17%-19%, the Jakarta Post reports. The nation has emissions and energy targets as part of the Just Energy Transition Plan it signed on for at the end of 2022. Roughly a year later it released its Comprehensive Investment and Policy Plan (CIPP) on how to enact the JETP. Under the CIPP Indonesia plans emissions to peak at 250 million tonnes of CO2 by 2030 and then fall afterward while renewable energy will make up 44% of the grid by then, contrasted to just over 10% now. However the government has made a turn only two months later. Energy minister Arifin Tasrif said this week renewable energy progress had been slow, driven in part by the “domination” of coal power. “We will adhere to the commitment we made, but we have to work toward it with what we have,” he said. Separately this week, Indonesia reported coal production for 2023 above the national target. Under Indonesian law a portion of coal must be reserved for domestic power generation.
Japan moving further on CCS – Japanese industrial giants Mitsubishi Heavy Industries and Kansai Electric Power will work on a carbon capture and storage (CCS) pilot plant, a combined cycle gas-fired power plant in Hyogo prefecture in Japan’s west. The two hope this week to demonstrate next-generation CO2 capture “as a substitution of the existing pilot plant installed at Nanko Power Station in 1991”. Mitsubishi plans to start operation in financial year 2025. The pilot is designed to capture 5 tonnes of flue gas, which is what is emitted when the natural gas is burned to operate the turbines, and has been designed in tandem with US oil giant ExxonMobil, which focuses more attention on CCS and other abatement technologies than investments in renewable energy.
Liquid ammonia – Inox Air Products, an Indian industrial and medical gases manufacturer has signed an MoU with the state of Maharashtra at the World Economic Forum, to set up the state’s first green ammonia plant with a capacity of 500,000 tonnes annually and a planned outlay of $3 mln. The plant will produce liquid ammonia and the project will be commissioned within three to five years, the Business Standard reported.
AMERICAS
Ottawa, Kinew work with us? – Manitoba Premier Wab Kinew says he wants work with Ottawa on re-examining how carbon pricing is applied in the province but did not share specific details on what that may look like. “I think that Manitoba has a very strong case to make that the carbon price could be revisited here in our province, and we’re going to be having those conversations with the same sort of constructive, collaborative tone that we’re bringing for this exciting investment today,” Kinew said at a clean aviation fuel announcement in Winnipeg. The announcement was done alongside federal Energy and Natural Resource Minister Jonathan Wilkinson. Kinew did not say whether revisiting the policy meant he wants to see the C$65/price adjusted in his province or if this means Manitoba plans on creating its own pricing system. The federal carbon price will increase to C$80 per tonne on Apr. 1. For gasoline, this would mean the price grows around C$0.14-17 per litre. (Global News)
Mooving forward – The Environment and Climate Change Canada (ECCC) officials on Wednesday provided an overview of the draft Reducing Enteric Methane Emissions from Beef Cattle federal offset (REME) protocol, offering clarification regarding project eligibility. Questions at the session revolved around feed additives, one of the eligible project activities under REME that entails the addition of minor ingredients to the diet to improve animal performance, feed efficiency, or weight gain such as ionophores, yeasts, essential oils, or other digestion enhancers. Jordan Graham, physical science officer at ECCC, explained that the existing draft protocol requires all feed, feed additives, or drugs to be approved for regulatory use in Canada and used in accordance with all relevant legislation, but noted that the agency is closely monitoring developments in the field. Eligibility exclusions currently include methane reducing vaccines as well as 3-NOP. The agency is accepting comments regarding the draft protocol until Feb. 6, and aims to publish the final regulation by the end of the summer.
Prove it – The US Senate Environment and Public Works Committee will hear on Thursday Senate Bill 1863 – popularly referred to as the PROVE IT Act – which stands for Providing Reliable, Objective, Verifiable Emissions Intensity, and Transparency Act. The act would direct the Department of Energy (DOE) to publish a study within two years quantifying the average emissions intensity of covered products produced in the US and those produced outside of the US, especially for products for which a foreign country held a substantive global market share. The PROVE IT Act would strengthen evidence that American-produced goods result in lower emissions than the country’s economic competitors such as China, giving lawmakers a better understanding of how to leverage the US carbon advantage through trade practices that reward American workers and industries, non-profit policy advocacy Citizens for Responsible Energy Solutions (CRES) said in a press release.
Where should the money go? – California regulator ARB will host a virtual public workshop on the developments of the Cap-and-Trade Auction Proceeds Fifth Triennial Investment Plan on Feb. 15 to provide the public with an opportunity to learn more and share early input on investment priorities for consideration in the Investment Plan. The US Department of Finance, in consultation with ARB and other State agencies, submits an investment plan to the Legislature to guide the investment of cap-and-trade auction proceeds once every three years. The Fifth Triennial Investment Plan will cover Fiscal Years 2025-26 through 2027-28 and is due to the Legislature in January 2025.
More free allowances – Washington house lawmakers introduced bill HB 2376 that would reduce free allowances that municipal gas utilities receive from the state’s cap-and-invest scheme to cover their emissions by 2% each year, rather than declining in proportion to the reductions in the cap needed to meet the state’s climate goals. This would increase the percentage of free allowances these municipal gas utilities could auction in order to provide rate reductions for customers by 2% a year, leaving the increases for other utilities at the current rate of 5% a year, the bill text outlined. HB 2376 has been referred to the House Committee on Environment & Energy but a hearing has yet to be scheduled.
Green blueprint – The Washington Forest Protection Association (WFPA) has launched the Working Forest Carbon Blueprint website, a comprehensive resource on carbon forestry. This initiative, involving various industry leaders, focuses on increasing carbon capture through forest management and wood product use. It aligns with Washington State’s carbon emission reduction goals and encompasses various aspects of carbon forestry, including forest health, carbon sequestration capacity, and sustainable building materials. The project, highlighting the ecological and economic significance of forests, aims to guide policymakers and the public in climate mitigation strategies. (PR Newswire)
ETS expected – When Brazil’s Senate returns to session on Feb. 1, the national cap-and-trade legislation passed by the Chamber of Deputies in December is expected to be a top priority, reported Brasil 61. Senator Leila Barros, who served as rapporteur of the bill in the Senate, praised the quick passage of the bill in the lower chamber and pledged to advance the bill to a vote as soon as possible. “We note that the backbone of the text constructed in the Senate has been preserved, which is a positive point. Given the urgency of the matter both for Brazil and for the world, our next step will involve a thorough analysis of the proposed modifications, followed by talks with the president of the Senate, Rodrigo Pacheco, in order to establish a schedule that will allow the approval of the final text as soon as possible,” Barros said.
VOLUNTARY
Kelp help – Aker BP is collaborating on a kelp cultivation project aimed at CO2 removal through photosynthesis. The plant, off the coast of Froya, Trondelag, will be operational by summer 2024. Managed by SINTEF Ocean, it will explore converting harvested kelp into biochar and possibly depositing it in deep water for permanent CO2 storage. The project, part of the Norwegian Kelp Center, includes various research endeavours, such as the “Seaweed Carbon Solutions” project. The initial 200-acre farm aims to harvest 200 tonnes of kelp, potentially capturing 25 tonnes of CO2. “Norway’s long coastline is suitable for industrial cultivation of kelp. Calculations show that a kelp plant of only 1 sq. km in size can produce 20,000 tonnes of kelp and by this capture 3,000 tonnes of CO2 annually,” the company said. “In addition to carbon capture, kelp and other macroalgae can be used in a variety of products such as food, animal feed, medicine, packaging, and fertilisers.”
SCIENCE & TECH
Carbon positive cotton – Coton Couleur, a ‘carbon positive’ cotton, was a novelty at Heimtextil, an international trade fair for home and contract textiles, at Messe Frankfurt, reported T Journal. The cotton is imported from Australia and harvested through a new technique that results in the absorption of more carbon via the island’s animals than carbon produced in the process. “It’s an absolute novelty in terms of bed linen,” claimed Carlos Carvalho, CEO of Coton Couleur. Europe is the main destination for the Portuguese company’s products.
AND FINALLY…
Old deniers, new denial – Climate misinformation on YouTube and elsewhere has shifted from outright denial to sowing doubt about climate science and mitigation efforts. The Center for Countering Digital Hate has analysed more than 4,000 hours of content on YouTube since 2018 and found that straightforward denial had dropped from 65% to 30% of climate-related claims. Instead, climate-sceptic language has transitioned to undermining confidence in climate solutions, for example asserting that wind farms harm the environment. This “new denial” is estimated to now constitute 70% of all climate denial claims made on YouTube, up from 35% six years ago. YouTube makes up to $13.4 mln annually from ads on channels posting climate denial content, the NGO said in a report. Half of the 200 videos on Youtube containing disinformation about climate change directly breach Google’s policy to stop profiting from climate denial videos, it added.
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