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TOP STORY
ANALYSIS: EU states plan policy changes to meet bloc’s 2030 emissions targets
Seven EU states are pinning their hopes on new climate policies to help get them on track to meet the bloc’s emissions reduction target of 55%, which they are currently projected to miss, their officials have told Carbon Pulse.
EMEA
Ukrainian environment minister confirms launch of ETS in 2025
Ukraine is planning to launch a national ETS in pilot mode in 2025, the country’s environment minister announced at an environmental forum in Kyiv on Wednesday.
UK urged to emulate US, EU green deals to spur clean industrialisation
A UK Labour government would work to emulate green deal policies in the US and EU to unlock private low-carbon investments in areas such as grid connectivity, housing, and infrastructure, the opposition party’s shadow climate change minister said on Wednesday.
Nigerian govt doubles down on carbon markets commitment at conference -media
The Nigerian government has underlined its commitment to reducing emissions through the establishment of a carbon market, its minister of environment said at an event in the country.
Euro Markets: EUAs post biggest monthly fall in four years as position data shows little weekly change
European carbon prices lost the most value in a single month in nearly four years, and also recorded their worst January performance in eight years, even as the market tested higher technical levels and weekly position data showed very little change in investment funds’ positioning after prices had moved just 0.1% last week.
AMERICAS
John Podesta to succeed John Kerry as US climate envoy
The present senior advisor on clean energy innovation and implementation at the White House, John Podesta, will assume the role of senior advisor to the President for international climate policy following John Kerry’s departure, the Washington Post reported Wednesday.
US non-profit receives $25 mln funding for marine carbon removal research
A Massachusetts-based non-profit dedicated to marine research will receive a donation of $25 million to support ocean-based climate solutions that can help strengthen the operations of the emerging blue carbon market.
RGGI emissions lower YoY in Q4, but not as much as prior quarters
The US Northeast and Mid-Atlantic RGGI power sector cap-and-trade system saw year-over-year (YoY) declines in CO2 emission in Q4 decelerate drastically compared to previous quarters in 2023, programme data showed Wednesday.
California LCFS prices reel from record high quarterly net surplus build in Q3
California Low Carbon Fuel Standard (LCFS) net credits hit a new record in the third quarter of 2023, coasting north of 2.2 million tonnes, with both total quarterly credits and deficits hitting new highs in programme history, according to state data published Wednesday, which sent secondary market prices lower on the day.
Canadian carbon credit company signs MoU with algae, seaweed sequestration provider
A Saskatchewan-based carbon credit origination and streaming company announced Wednesday the signing of a Memorandum of Understanding (MoU) with a company specialising in biosynthetic algae and seaweed carbon sequestration services for the generation of credits from the enhancement of agricultural soil.
ASIA PACIFIC
Indonesia issues new CCS regulations, allows foreign firms 30% of capacity
Indonesia has brought in more regulations governing carbon capture and storage (CCS) work as it sees the tech as an integral plank in its plans to meet its Nationally Determined Contributions and meet its net zero by 2060 commitment.
Canberra readies A$200 mln for cleaner steel making
The Australian government is helping to keep the nation’s steelmaking industry alive with A$200 million ($131.45 mln) in grants to two of the country’s three remaining steel mills, while also hoping to reduce carbon emissions.
INTERNATIONAL
More than 65 countries sign up to global cooling pledge launched last month
More than 65 countries are now signed up to the Global Cooling Pledge that launched at COP28 last month, but more research is needed to turbo-charge the delivery of cooling plans, advisors to the UK government, one of the initial signatories of the pledge, said on Wednesday.
Decarbonising industry technically possible but other barriers need addressing too -report
Harmful industrial emissions could be reduced by up to 85% across the world with a mix of tried-and-tested technologies and upcoming tech, according a report published on Wednesday, findings from which have been submitted to a UK government consultation.
Coalition for Rainforest Nations steps up campaign for sovereign forest carbon ITMOs
The Coalition of Rainforest Nations (CfRN) has stepped up its campaign to promote UN-approved sovereign credits from REDD+ forestry protection, launching a new report guiding how they could be used towards meeting national climate targets under the Paris Agreement.
VOLUNTARY
INTERVIEW: Using carbon finance to support provision of clean water holds untapped potential
Clean water access could be sped up through monetising the associated carbon benefits, increasing finance to projects historically reliant on philanthropy and grant support, according to stakeholders in the sector.
Voluntary market sees positive outlook for prices, some NBS though excess credits remain -analysts
The voluntary carbon market (VCM) is experiencing increasing demand and will see a recovery in prices, including for some nature-based credits, although it still faces excess supply, limited alignment with integrity-boosting initiatives, and larger pools of older vintage units.
Drax powers up US BECCs ambition with woody biomass deal
UK power company Drax Group has secured an option with Molpus Woodlands Group (Molpus) to buy up to 1 million tonnes of sustainably sourced woody biomass a year to fuel its bioenergy with carbon capture and storage (BECCS) operations in Southeastern US.
Benchmark pricing company to create ‘price baskets’ for carbon credits after tie up with ratings agency
A benchmark pricing company has struck a deal to display carbon credit ratings on its platform with a view to creating ‘price baskets’ for carbon projects.
African energy producer, Indian carbon developer team up to assist power plants in offsetting emissions
A South African energy producer has partnered with India’s largest carbon project developer to provide consultancy solutions to power plant owners about emissions offsetting projects.
CLARIFICATION: Just 8% of carbon credits to be internally assessed for CCP label, with most methodologies requiring external expertise
(Clarifies that ICVCM internal review process is not considered an approval “fast-track”, which is a term the council has said it has stopped using)
SHIPPING
EU shipping companies can now apply for their own EUA trading account
Shipping companies will now be able open their holding accounts for EUAs, which they have been waiting for to start hedging and meeting their EU ETS requirements, following the publication of a legal act by the European Commission on Wednesday.
BIODIVERSITY (FREE TO READ)
UK biodiversity net gain could “incentivise” building in nature recovery areas
The UK government could encourage developments in areas intended for nature recovery through changes to its biodiversity net gain (BNG) metric, though ecosystems may not lose out, market onlookers have said.
Financial institutions should ‘go shopping’ for a data provider, TNFD exec says
Financial institutions should not hide behind the lack of data and start relying immediately on external data providers to assess the impacts on nature across their value chain, a Taskforce on Nature Related Financial Disclosures (TNFD) official has said.
German nature agency concerned about biodiversity regulation
The German government’s nature department would like to see regulation on biodiversity progress so that the financial sector is better equipped to tackle the emerging crisis.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Carbon Pulse goes dark – Don’t worry, it’s good news! We have implemented a ‘dark mode’ feature on our website aimed at those who prefer to consume a bit less electricity (or use up a bit less mobile/tablet battery life) while reading our news or who find our all-white background a bit hard on the old eyes. Just look for the sun/moon button to toggle between light and dark modes. For desktop users, you can also drag and drop that button to your preferred location on your screen.
EMEA
Italian transition – The European Commission approved yesterday a €550 mln state aid scheme for the use of hydrogen in industrial processes in Italy. The initiative is considered a way to foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan. Italy previously notified to the Commission, under the Temporary Crisis and Transition Framework, that the money will support the substitution of methane and other fossil fuels with renewable hydrogen. Under this measure, which will be funded through resources allocated to the Italian National Recovery and Resilience Plan (PNRR), the aid will take the form of direct grants, open to companies and projects that are ready to reduce GHG emissions from production processes by at least 40% or to reduce energy consumption by at least 20%, compared to today.
French farmers – The French government sent armoured vehicles to protect a wholesale food market in Paris on Wednesday, as farmers blocked highways in France and Belgium and protests spread to Spain, Italy, Germany, and elsewhere in Europe, Reuters reported. The protests are calling on governments to ease environmental rules and protect farmers from rising costs and cheap imports. In response, the European Commission proposed limiting farm imports from Ukraine and loosening environmental rules on fallow land – ahead of an EU leaders’ summit in Brussels on Thursday.
SSAB story – Swedish steelmaker SSAB reported a smaller decline in fourth-quarter earnings than expected as European steel prices improved towards the end of the year, leading the company’s shares to rise 4%. SSAB’s adjusted operating profit dropped by 36% compared to the previous year, affected by lower steel prices in Europe and the US. However, the company exceeded the consensus forecast and performed better than anticipated due to less severe price drops and stronger volumes in Europe. SSAB also expects increased shipments in the first quarter of 2024, particularly in its special steels business. Production and shipments in the fourth quarter were in line with the same period of the previous year but decreased from the prior quarter due to scheduled maintenance outages. (Reuters)
ASIA PACIFIC
Tiny portion – Some 1% of New Zealand’s soil is releasing between 5-7% of the country’s GHG emissions, according to figures presented to cabinet last year, Radio NZ reports. The CO2 emissions come from peat bogs that have been drained and are mainly used for dairying in several regions. More accurate reporting methods revealed peatlands were producing some 4-5 MtCO2e per year, roughly double previous estimates. The figures were presented to cabinet by former Climate Change Minister James Shaw as part of a strategy to rely less on offshore mitigation to meet the country’s NDCs. One of the domestic opportunities identified in the cabinet paper was ‘reducing emissions from drained peatlands’. New Climate Change Minister Simon Watts said he is still waiting for advice on the topic.
Plugging a leak – Australia’s biggest oil and gas company and one of the world’s top 10 independents has signed up to a United Nations programme to enhance methane leak reporting. Woodside Energy said Wednesday it had joined the United Nations Environment Programme (UNEP) Oil & Gas Methane Partnership 2.0. It was designed, Woodside said, to “provide the public assurance that methane is being managed responsibly”. Woodside will be the first Australian member. The company plans ‘near-zero’ methane emissions from its operated assets by the end of the decade. Methane leaks are a serious environmental hazard given the gas has a far greater warming potential than CO2, although a much shorter life in the atmosphere. Managing leaks is increasingly required of oil and gas companies in order to operate.
Blue hydrogen partnership – Steelmaking giant Posco Group and the UAE’s Abu Dhabi National Oil Company (ADNOC) will collaborate on blue hydrogen production and carbon storage facilities in South Korea, according to the Korea Herald. Posco International, Posco Holdings and ADNOC have signed a three-way strategic collaboration agreement to build blue hydrogen production facilities at Posco’s LNG terminal in Gwangyang, South Jeolla Province. The three companies said they will start testing the feasibility of the project this year, and the new facility may begin supplying blue hydrogen to nearby regions in 2029.
New business – Japanese refiner COSMO has decided to tap into the storage battery business to help reduce fluctuations in renewable energy generation, with three demonstration projects in the pipeline, according to a company statement. Earlier this month, one of the three pilots was already launched with a capacity of around 16.6 kWh, and the firm will utilise the amount of electricity consumed from solar power generation as domestically issued J-Credits.
AMERICAS
Small-scale biochar – Washington House Bill (HB) 2483, which proposes expanding the list of alternative forestry disposal practices to include small-scale biochar production, has been referred to the House Committee on Environment and Energy, and is awaiting a hearing. HB 2843 would add biochar production using mobile units with emissions lower than those from open burning – given that such units consume less than 150 green tonnes of clean cellulosic biomass per month – to the list of alternative forestry disposal practices encouraged by the Department of Natural Resource.
Farmers’ calls – Industry association Grain Farmers of Ontario is seeking support from the Canadian government to pass Bill C-234, a bill that aims to amend the Greenhouse Gas Pollution Pricing Act and includes an exemption on carbon pricing for fuel used to dry grain. Conservative Member of Parliament (MP) Ben Lobb, who introduced the bill in Feb. 2022, on Monday tabled a motion to essentially reject the Senate’s amendments to the bill that removed GHG and barn heating from proposed exemptions, and looked to reduce the bill’s sunset clause to three years from eight. (Farmtario)
Cracking down – The Permanent Deputation of the Congress of Nuevo Leon in Mexico has asked Governor Samuel Garcia to guarantee that companies that invest in the state generate fewer polluting emissions and are obliged to operate according to high environmental standards, reported Milenio Wednesday. Ana Gonzalez, of the Congress’ PRI party, requested that existing polluting companies in Nuevo Leon be adequately regulated, supervised, and sanctioned. Legislators requested a budget to address the issue via the creation of action plans in coordination with the Secretariats of the Environment, Sustainable Development, and Health.
VOLUNTARY
Hydrogen liftoff – Airbus, Avinor, SAS, Swedavia, and Vattenfall have signed an MoU to probe the feasibility of hydrogen infrastructure at over 50 airports in Sweden and Norway. The cooperation aims to understand hydrogen aircraft operations, supply, infrastructures, and refueling needs at airports. The work will also consider how to select which airports will be transformed first to operate hydrogen-powered aircraft, and appropriate regulations.
INVESTMENT
Internet age – E.ON’s venture capital arm Future Energy Ventures is backing a new fund for digitalisation of the energy transition, which is targeting €250 mln and will also see the European Investment Fund (EIF) participate as an anchor investor. The fund’s capital will be allocated entirely across three investment themes of future energy, future cities, and future technologies. Initial ticket sizes will be between €1-10 mln for early-stage investments in start-ups and scale-ups, aiming to target 30 new investments to develop and implement digital solutions to drive the energy transition in innovation hubs of Europe, North America, and the Middle East.
All through the town – US-based transportation technology firm Zum completed a $140 mln Series E funding round to support its efforts to fully decarbonise the school bus industry, it announced Wednesday. The fundraise was led by global investment firm GIC and supported by funds from Climate Investment, Sequoia, and Softbank Vision Fund 2, raising the company’s valuation to $1.3 bln. The company looks to deploy full EV school bus fleets and operate as “virtual power plants”, sending energy back to the grid.
Scale-up money – UK-based venture capital firm Giant Ventures announced the launch of a $150 mln climate-focused growth fund aimed at Series B companies on Tuesday. The firm is already on track to deploy more than $1 bln into sustainable technologies this decade, it claims, with a portfolio that includes regenerative farming carbon market platform Agreena and energy storage startup Field.
SCIENCE & TECH
Pico of the bunch – PicoNext, a blockchain-based platform, has partnered with Tomorrow’s Air, a travel industry collective advocating for sustainable practices, to integrate its technology into a ‘Digital Product Passport’ product for carbon removal purchases, according to a press release. The Digital Product Passport will allow travelers with Tomorrow’s Air’s partner businesses to monitor the progress of associated carbon removal orders. Through the tool, users can see the methods used to extract carbon from the atmosphere. The passport also enables businesses and individuals to trace the journey of their carbon removal orders throughout the supply chain, providing information about projects and technologies.
AND FINALLY…
Fly like an EUAgle – Through the Portuguese Environmental Fund, Portugal is using revenue from the EU’s Emissions Trading System to help decarbonise the country and preserve its biodiversity. Carbon Market Watch’s short documentary highlights the story of an animal shelter in Lisbon which uses EUA sales revenues for nature conservation purposes, including rehabilitating some species of highly-endangered birds. This video is part of ETS Human Stories, a series that reveals how the EU ETS affects the lives of people and animals and how this potential can be further boosted. It is a collaboration between Carbon Market Watch, the Green Tank (Greece), ZERO (Portugal), and Bond Beter Leefmilieu (Belgium).
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