Newsletters > CP Daily: Monday February 19, 2024

CP Daily: Monday February 19, 2024

Published 23:58 on February 19, 2024 / Last updated at 23:58 on February 19, 2024 / / Newsletters

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

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

PREVIEW: Upcoming Supreme Court case could stifle US federal environmental efforts, experts say

An unprecedented US Supreme Court hearing on Feb. 21 could open the door for challengers of federal environmental policies to effectively halt the implementation of regulations while those policies are being litigated, legal experts warn.

EMEA

EU heavy industries to meet in hush-hush summit on an Industrial Green Deal

More than 60 chief executives of European heavy industries are expected to meet at a chemical plant in Antwerp on Tuesday for a hush-hush summit that will issue a declaration for a European Industrial Green Deal.

Euro Markets: EUAs post biggest one-day loss in a year as sellers overwhelm limited buying interest

European carbon prices fell by the most in a year on Monday, reaching the lowest intraday price in 30 months as aggressive selling overwhelmed the buy side amid bearish energy markets, and an analyst forecast even weaker prices ahead.

EUA prices set to drop further on weakening gas prices, setting up buying opportunity -analyst

EUA prices are set to fall further to three-year lows as the impact of declining natural gas prices filters through to the rest of the energy complex and demand from compliance buyers remains low, making 2024 “the year to build strategic long positions”, according to a European bank analyst.

Bids for EU’s first green hydrogen auction outweigh available funding

Bids under the European Commission’s pilot auction for renewable hydrogen production have far exceeded the €800 million budget, demonstrating enthusiasm to scale up the nascent industry, the Commission said on Monday.

Weak EU demand for electric vehicles due to high prices, not the other way around, says campaign group

European carmakers are failing to deliver affordable models for electric vehicles, data show, contrary to popular belief that low consumer demand is behind a “backpedalling” on production plans.

Green Deal champion von der Leyen seeks second term as European Commission president

European Commission President Ursula von der Leyen’s bid for a second term could help to protect, and implement, the European Green Deal that she spearheaded, following elections that are heavily favoured towards the political right and against ambitious climate action.

South Africa’s independent climate body lambasts energy ministry’s power plan

South Africa’s Presidential Climate Commission said the energy ministry’s electricity plan fails to adequately address the country’s power supply crisis and to ensure that emissions fall in line with international climate commitments.

VOLUNTARY

VCM Report: Integrity drive undermined by large trade in near-worthless voluntary carbon credits

Prices barely moved last week and trade thinned to curtail some early exuberance of a revival of the voluntary carbon market this year after a trough in the second half of 2023, although retirement levels remained healthy.

Voluntary carbon standard ditches old UN crediting methodologies, focuses on nature

A voluntary carbon standard has announced it will exclusively focus on nature-based solutions and discontinue the eligibility of Clean Development Mechanism (CDM) methodologies under its banner.

Indian agri-tech startup’s flagship carbon programme to soon receive first Verra issuance

An Indian agri-tech firm will soon receive the first issuance of Verra certified carbon credits under its carbon farming programme, the company told Carbon Pulse Monday.

Cote d’Ivoire signs landmark forest rehabilitation agreement

The government of Cote d’Ivoire has signed a landmark agreement with an investor consortium for forest rehabilitation, which will generate carbon credits through agroforestry.

ASIA PACIFIC

Australia Market Roundup: Australia losing momentum in hydrogen development, ACCU issuance slumps

The head of an Australian energy gentailer is unsure whether a newly-opened gas-fired power station will be able to meet its target to partially run off green hydrogen by 2025 due to a lack of supply.

Indian govt sets up taskforce to accelerate transition away from fossil fuels

The Indian government has set up a taskforce to accelerate the country’s transition away from fossil fuels in order to deliver on the first global stocktake agreed by nations at the UN climate summit COP28 in Dubai last year.

Shanghai releases carbon allocation plan for 2023

The Shanghai municipal government is set to hand out more carbon permits under its emissions trading scheme this year as some emitters have been added to the market.

South Korea to scale up funding support for overseas emissions reduction projects

South Korea has decided to expand funding support for overseas emissions reduction projects this year, as the East Asian country plans to use international carbon credits to fulfil more than 10% of its 2030 CO2 reduction target.

INTERNATIONAL

Japan, Ukraine to trade Paris-aligned carbon credits under JCM

Ukraine has become the 29th country to sign up to Japan’s Joint Crediting Mechanism (JCM), in the hope of generating carbon credits aligned with the Paris Agreement.

Big oil pockets hundreds of billions from energy sales since Ukraine invasion

The profits of the big five Western oil majors have reached nearly $300 billion since Russia invaded Ukraine two years ago, according to analysis from an NGO.

AMERICAS

ANALYSIS: Delayed LCFS decision sparks market bull run, but prices retrace with cautious optimism

California regulator ARB’s announcement to postpone a hearing and vote regarding amendments to its Low Carbon Fuel Standard (LCFS) saw a short-lived market rally, as market observers anticipate significant changes to the proposed amendments, which were criticised by industry, environmental groups, and market participants alike.

BIODIVERSITY (FREE TO READ)

INTERVIEW: Land restoration company counts on capital injection to scale nature credits model

A UK-based land restoration company is counting on capital from an investment fund to help scale its model of buying up land for natural capital purposes.

Australian groups push for law to protect biodiversity in the Northern Territory

A group of scientific and conservation organisations have called for the Northern Territory (NT) to legislate biodiversity protection for the first time in an open letter to the chief minister, even as the federal government is in the process of reforming the national environmental law.

UN wildlife summit expands species protection list, agrees strategic plan

Fourteen new migratory species will be protected under the Convention on Migratory Species (CMS) as delegates at the UN summit in Samarkand, Uzbekistan committed to raising transboundary efforts on wildlife conservation.

Investment manager pressures companies for progress on biodiversity-related disclosures

A major investment manager has pledged to target companies failing to disclose their impacts on biodiversity with nature-related reputational and business risks poised to affect its portfolio.

Asset manager, insurance company partner to launch fund for biodiversity credits -Bloomberg

A London-based investor has partnered with a British-American insurance company to start a biodiversity credit fund in the wake of England’s net gain (BNG) policy coming into force, Bloomberg reports.

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CONFERENCES

Carbon Forward Asia – March 7-8, Singapore and online: Our conference is anchored on relevant, current content shining the spotlight on opportunities and risks in the Asia-Pacific region. Organised by Carbon Pulse, Redshaw Advisors, and others working in the sector, the agenda will delve into pressing topics with regional and international leaders. With half of all ASEAN countries in the process of establishing domestic carbon markets, we’ll examine at the region’s emerging markets – both compliance and voluntary. And as China prepares to relaunch its CCER offset scheme, we’ll look at domestic demand and possible impacts on voluntary projects. The event will discuss what impact the EU’s Carbon Border Adjustment Mechanism (CBAM) will have. (On Mar. 6 there’s a separate CBAM workshop comprising everything you need to know). Conference attendees will also hear about CORSIA, Article 6, COP29, removals, nature-based solutions, and so much more. Carbon Forward Asia is also a meeting hub for corporates, investors, financiers, bankers, brokers, representatives from industrials, shipping and aviation, oil and gas, utilities, energy, traders, regulators and policy makers, carbon market analysts, project developers, exchanges, rating agencies, and NGOs. Register now!

North American Carbon World (NACW) 2024 – March 19-21, San Francisco: Attend NACW 2024 to learn, collaborate, and network with the North American carbon community and provide a stronger, unified force in advancing climate solutions. Hosted by the Climate Action Reserve, NACW will dive into major new policies, innovations, and developments that will shape and scale carbon markets and climate solutions with integrity and ambition. In addition to outstanding speakers, discussions, and insights, NACW provides premier networking opportunities with an active and engaged audience of leading climate and carbon professionals from all sectors of the economy. www.nacwconference.com

European Climate Summit – April 16-18, Florence: To kick off its annual regional climate summit series this year, IETA looks forward to welcoming delegates to its flagship ECS2024 event, taking place in Italy. ECS comes at a key inflection point for the region’s carbon market. How will the European carbon market evolve in its next phase, which starts in 2031? Around the world, carbon markets are emerging at the fastest ever pace, with new emissions trading systems being developed from Brazil to Vietnam. More markets may mean more opportunities for international cooperation and linking, and some of these could come to Europe. The health of the voluntary carbon market is also a hot topic this year, as the market works to overcome challenges. Environmental integrity and robust quality assurance are at the top of everyone’s mind, and IETA’s ECS2024 will address these issues as well. To register, simply click HERE to join as a delegate. In-person event.

Next steps for the UK Emissions Trading Scheme – April 22, Online: Hosted by Westminster Energy, Environment & Transport Forum, stakeholders and policymakers will explore priorities for implementation and maximising the carbon market’s contribution toward the UK’s net zero strategy. Discussion will consider policy priorities, challenges for industries, and plans to expand the scheme to include domestic shipping and energy from waste. Sessions will also explore the auction reserve price, the forthcoming CBAM, and strategies to enhance the UK ETS’s efficacy while mitigating negative impacts. Book your place

Carbon Forward North America – June 11-12, Toronto: Join us in the Great White North to hear about the evolving carbon pricing and climate policy landscape in North America. Whether you are an emitter, investor, developer, or a new participant in any of the continent’s carbon markets – compliance or voluntary – Carbon Forward North America offers you the opportunity to gain knowledge on both present and future policy developments and market opportunities. Explore the chance to meet the right people or source the right solutions to help you enhance your business prospects or minimise your risk. Come meet the region’s world-leading carbon market experts, compliance players, government officials, investors, project developers, analysts, brokers, and other stakeholders. Agenda to be released soon. To express an interest in speaking or sponsoring, please email michelle@carbon-forward.com

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BITE-SIZED UPDATES FROM AROUND THE WORLD

EMEA

CCS venture – Uniper has awarded Technip Energies and Aker Carbon Capture with contracts for a Process Design Package (PDP) for a carbon capture project at its combined cycle gas turbine power plant on the Isle of Grain in southeast England, with the project intending to capture more than 2 Mt of CO2 annually. Under the contract, the two companies will be responsible for designing the process for CO2 capture, conditioning, liquefaction, and a temporary storage facility. They will compete to engineer the CCS technology and plant design needed for the project to move to the front end engineering and design (FEED) phase, ahead of a final investment decision, expected to be taken in the mid-2020s. Post-combustion carbon capture technology will be fitted onto as many as three units of the existing 1,326MW CCGT plant, helping to meet Uniper’s ambitious strategy to generate more than 80% of its installed power capacity from carbon-free sources by 2030.

Gulf CCS – National oil and gas companies in the Gulf states are strategically investing in carbon capture technology as a way to help them meet their targets for net zero emissions by 2045-50, and also to protect their export revenues, according to a report by Columbia University’s Center on Global Energy Policy. For companies including Saudi Aramco, ADNOC, Petroleum Development Oman, and Kuwait Petroleum, CCS provides a means to meet their net zero targets and mitigate the coming risks from future carbon pricing schemes, which are set to increase with measures like the EU’s CBAM. It can extend the business cycle of oil and gas production by creating cleaner and more marketable fossil fuels products.

Full-gas ahead – The strategy of state-owned Abu Dhabi National Oil Company (ADNOC) is centred around gas output, with Egypt identified as a market with lots of potential, according to a leading executive of the company. ADNOC is seeking to grow its gas business domestically and abroad and has called natural gas a transition fuel to renewable energy sources. Last week, it said it would form a joint venture with BP focused initially on natural gas. (Reuters)

Deep sea investigations – The UK government’s Department for Environment, Food and Rural Affairs (Defra) has announced plans for a new environmental science network, said to be tasked with assessing the potential impacts of deep sea mining on marine ecosystems. UK environmental experts are invited to apply to be part of the network, which will research the controversial practice amid ongoing concerns by scientists about the potential impact on marine ecosystems and carbon sequestration. The news comes just a few months after the UK government announced its backing for a moratorium on deep sea mining licenses in international waters until more evidence on its environmental impacts becomes available. Norway became the first country to greenlight the practice last month. (BusinessGreen)

ASIA PACIFIC

Forest credit partnership – Japanese trading house Marubeni Corporation has formed a partnership with Akita Prefecture’s Daisen City and regional lender Akita Bank to help create domestically issued J-Credits by using around 1,100 hectares of the municipally-owned forests, it announced Monday. The three companies have set a goal of registering the credit-generating project in FY2024 and achieving certification from FY2025 onwards. Marubeni is also working on a woody biomass project targeting emissions reductions from the use of forest resources in Indonesia. 

Expected delays – Japan’s Tohoku Electric Power has pushed back the restart of reactor No. 2 at its Onagawa nuclear station as additional safety construction works delayed the process, according to Reuters, citing a company statement. Tohoku, which already received a de facto regulatory approval for the restart in 2020, said it now aims to restart the reactor around September. The facility was previously scheduled to come online in May this year.

Talents needed – China’s Certification and Accreditation Administration (CNCA) has called for candidate recommendations for the establishment of a technical committee as required by the country’s offset trading regulations, according to a government notice. Only experts with more than five years of scientific research or technical experience in the validation and verification of voluntary projects will be considered suitable candidates, CNCA said. The deadline for submitting recommendation documents is Mar. 8. 

Slow lane – The head of Australia New Zealand Banking Group (ANZ) has criticised the slow pace of regulatory and planning approvals in Australia’s renewable energy sector, The Australian newspaper reports. Bank Chief Executive Shayne Elliot told a forum in Queensland that approvals were slowing down at a time when Australia needed to pick up the pace in its transition to net zero. He said approval process were taking too long and appeared to be getting longer, affecting project development costs. Australia is striving to achieve 82% renewable energy in its electricity grid by 2030. State approvals for large-scale wind and solar projects decreased by 75% in the past four years, according to Rystad Energy. However, while wind and solar languish, investment in large-scale storage projects in Australia reached an all-time high of A$2 bln ($1.3 bln) in Q3 last year alone, according to the Clean Energy Council.

AMERICAS

Heavy on the EV – The Biden administration looks to relax its limits on tailpipe emissions intended to shift Americans from gas-powered cars to electric vehicles, the New York Times reports. The current policy proposal, first announced by the EPA in Apr. 2023, outlined for two-thirds of new passenger cars and one-fourth of new heavy trucks sold in the US to be all-electric by 2032.  According to three people familiar with the plan, the administration looks to give car manufacturers more time to prepare for a sharp increase in electric vehicle sales only until after 2030. The administration looks to publish the final rule by early spring. A Feb. 7 report published by the Congressional Budget Office found the Apr. 2023 EPA proposal to be the largest factor in revised costs contributing to ongoing federal deficits, totalling $224 bln out of an overall $428 bln in Inflation Reduction Act-related deficits through 2033.

CO2 storage concerns – Seven First Nations in Alberta have come together to question the impacts of carbon storage underneath or adjacent to their traditional lands, the Canadian Press reports. The Treaty 6 working group is particularly concerned regarding a C$16.5 bln ($12.2 bln) project by oil sands industry group Pathways Alliance to store up to 12 MtCO2 a year by 2030. The scheme would see carbon capture from 13 oil sands facilities and subsequent storage via 16 injection wells. Kendall Dillings, president of Pathways Alliance, told the Canadian Press that it is in the early stages of consultation with communities and dedicated to working together with Treaty 6 First Nations. The working group includes Heart Lake First Nation, Beaver Lake Cree Nation, Whitefish Lake First Nation, Kehewin Cree Nation, Frog Lake First Nation, Cold Lake First Nations and Onion Lake Cree Nation, and is being observed by Saddle Lake Cree Nation.

CCUS incoming – Heidelberg Materials North America – of German multinational cement producer Heidelberg Materials – selected French engineering and tech firm Technip Energies as a partner in the firm’s efforts towards its Edmonton, Alberta CCUS project, the company announced on Thursday. Technip was awarded a front-end engineering and design contract for the carbon capture component of the project, which is powered by fossil fuel producer Shell’s CO2 capture system based on regenerable amine technology, a release stated. The CCUS project will be the world’s first net zero cement plant, the firm claims, with the objective to capture and store approximately 1 MtCO2 each year. The company plans for carbon capture operations to commence in late 2026, subject to federal and provincial funding agreements.

VOLUNTARY

Dodgy offsets – Over 20 firms have allegedly offset emissions using carbon credits from an area where the Brazilian authorities identified deforestation and the use of enslaved workers, according to an article published by Reporter Brazil on Monday. In June 2023, 16 workers were rescued from the Sipasa Farm, owned by the company Sipasa, in the Brazilian state of Para.  The workers had been hired to clear 477 hectares of forest within an area of the farm forming part of the Maisa REDD+ Project, as per the reporting. The integrity of the Maisa Project has been questioned since 2021 when deforestation was identified within the area. The corporates, including Uber, Audi, and Nike, are reported to have recently used the carbon credits for climate claims. The project was deactivated by Verra in 2022, and has not issued credits of a vintage later than 2020. Verra, in response to Monday’s article, pointed out that its 131,600 credits still in the registry’s buffer pool had already been put ‘on hold’ before the allegations were made. Several of the companies linked to the retirements also issued statements saying they were now investigating the use of credits from the project. Around 635,000 units were issued to Maisa (VCS 1329) between 2015 and 2021, according to registry data. The latest retirements from issuances from the project came as recently as Feb. 15, 2024.

Helping hand – CRIF has launched an ESG Analytics platform to help UK financial institutions meet their sustainability goals, the firm announced Monday. The solution draws on over 130 key indicators derived from UK and EU information sources, analysing information on important areas such as a firm’s water usage, waste production, emissions, health and safety records, modern slavery, and inclusiveness. The service enables business to take effective and immediate action on a range of ESG issues – for example to ensure they are promoting sustainability by measuring their GHG emissions and assessing transition, physical, and environmental risks ahead of prospective new regulation.

Ocean removals – Carbonx Climate has purchased 746 tonnes of marine carbon removals coupled with mineralisation from Equatic.tech, the companies announced today. Equatic.tech’s process stabilises CO2 permanently in the form of dissolved bicarbonate ions (in seawater), and in the form of solid mineral carbonates, producing green hydrogen as a co-product. The purchase by Carbonx Climate is on behalf of an unnamed client.

SCIENCE & TECH

Investment please – The head of the International Air Transport Association (IATA) implored oil companies to produce more SAF, saying it would be vital for the aviation sector to decarbonise, Bloomberg reports. IATA director general Willie Walsh told an aviation summit in Singapore that demand for the cleaner-burning fuel far outstrips supply, despite it costing three to five times more than conventional jet fuel. Walsh described it as an “existential issue” for the aviation sector, which would not be able to expand unless it could prove to stakeholders that it could so in a sustainable way. Forecasts from McKinsey expect a $5 trillion capital investment to transition the aviation sector to net zero emissions. Walsh also warned that hydrogen would not be a viable form of propulsion any time soon, emphasising the importance of SAF. SAF sourced from waste oils and agricultural feedstock can cut carbon emissions by as much as 80%.

Calculating Scope 3 – IBM has added a Scope 3 calculation and reporting feature to its Envizi ESG Suite software, which captures and aggregates high-volume supplier and product-level transactional data along with product carbon footprint data, the firm announced last week. The product, known as its Supply Chain Intelligence module, includes automated product-level data request data collection and analysis that enables efficient collaboration between suppliers, the firm detailed.

AND FINALLY…

Strawberry fields forever – Hiroshima prefecture in Japan is launching a test project in which CO2 is captured from the atmosphere using a new porous metal – Metal Organic Framework (MOF) – and then added to the strawberry growing process. Project participants Aohata, Anvar, and SyncMOF said in a statement they hope the project will both help store CO2 and boost strawberry production. Hiroshima prefecture is sponsoring the project as part of efforts at its recently established fruit research institute to contribute to a recycling-oriented society and sustainable raw material procurement. Read Carbon Pulse’s recent coverage of findings on MOFs from research done the US Argonne National Laboratory.  The authors of a new study used artificial intelligence (AI) to create a class of MOFs that they believe “exhibit great promise” and could revolutionise carbon capture technology.

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