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TOP STORY

China ETS could cut costs by 30% with auctions -report

Introducing an auctioning mechanism can lower the economic costs of China’s emissions trading scheme by at least 30% and reduce distortions associated with pre-existing taxes, a report has found.

EMEA

European Commission scolds EU member states for inadequate 2030 climate plans

Some European Union member states must correct their policies if they are to reach the bloc’s climate targets to cut net greenhouse gas emissions at least 55% by 2030 compared to 1990 levels, according to a European Commission assessment.

Green group files criminal complaint against large German oil and gas firm for misreporting emissions

A criminal complaint was filed against Germany’s largest oil and gas producer on Thursday because of “suspicion of false and concealing information” in its previous year’s annual report about the level of carbon emissions.

Construction of pivotal UK nuclear plant in near horizon, with government sign-off and financing -webinar

Construction of the Sizewell C nuclear project in southeast England could start later this year, provided that the government gives the greenlight and financial close is reached, said executives on a webinar about the UK’s nuclear agenda on Friday.

Euro Markets: EUAs post 8.7% weekly loss, hit new 31-month low as outlook remains bearish

EU carbon prices settled down 8.7% from the previous Friday, their largest five-day loss in six weeks and setting yet another 31-month low, as selling pressure in both carbon and natural gas continued to steadily weigh on the markets amid little sign of any let-up in the decline, while a bank analyst lowered their end-of-year price forecast.

Threat of foreign energy dependence, influence adds urgency to Western Balkans joining EU ETS, think tank warns

Extending the EU ETS to the Western Balkans’ power sector could enable a faster coal phase-out while also keeping possible Russian and Chinese influence at bay, according to a European think tank.

Polish province commits to phasing out coal by 2030

The province of Wielkopolska in Poland is officially moving out of its historical fossil fuel dependency, after signing up on Friday to the Powering Past Coal Alliance (PPCA) during a conference focused on “Life After Coal”.

VOLUNTARY

US bank teams up with Singaporean climate-tech firm to provide digital decarbonisation solutions

A New York-based bank has partnered with a Singaporean climate-tech company to provide digital decarbonisation solutions through which organisations can offset their emissions by purchasing credits from the bank’s portfolio.

Investors should pressure large advertising companies to refuse to work for environmentally damaging clients -think tank

Investors in publicly listed advertising holding companies should hold them to greater account over their carbon-intensive clients, says a report about the environmental impact of the industry.

Startup monetising individuals’ emissions reductions exits offsetting game

A startup that monetised individual actions to reduce personal emissions has stopped offering the resulting offsets to businesses, citing the practice as a questionable solution to the climate crisis.

Human population density does not directly impact mangrove carbon stocks -study

Human population density has a “negative association” with carbon stocks present in mangrove soil and is therefore not a good measure of understanding the effects of mankind on these ecosystems, research has found.

ASIA PACIFIC

Australian developer invests in advisory firm for one-stop energy-emissions shop

Australia’s biggest project developer has teamed up with a carbon and energy advisory firm via a strategic investment to expand both companies’ services with a focus on the agricultural sector.

Korean conglomerate gets carbon offset methodology approval

One of South Korea’s biggest companies has won its first approval for a methodology designed to generate carbon credits under a recently launched domestic offset standard.

CN Markets: CEA, CCER volumes continue to drop amid sluggish demand

Trading in China’s carbon market has remained muted after the recent holiday with relatively low liquidity amid sluggish demand, even as the spot allowance price reached the highest level since the beginning of the year.

AMERICAS

Speculators continue to take advantage of record CCA, RGGI prices, compliance builds North American carbon holdings

Financial players continued to take profits across North American carbon markets, as opposed to regulated entities that built net length in California Carbon Allowances (CCAs) and RGGI allowances (RGAs), while Washington Carbon Allowances (WCAs) remain out of favour in both groups, weekly data from the US Commodities and Futures Trading Commission (CFTC) release Friday showed.

Canada eyes creation of carbon credit platform to help offset federal govt emissions

The Canadian government is gathering information about the supply and brokerage services of domestic carbon credits, as it looks at creating a platform to help federal departments and agencies offset their emissions.

BIODIVERSITY (FREE TO READ)

PREVIEW: Biodiversity to take centre stage at UN Environment Assembly amid calls for urgent action

Hastening the implementation of the Kunming-Montreal Global Biodiversity Framework (GBF) through updating national strategies, mobilising nature finance, and enhancing cooperation between biodiversity-related conventions will be among the core topics of discussion at the 6th UN Environment Assembly (UNEA) next week, as the world’s top decision-making body on the environment gathers for the first time since the landmark agreement was sealed in 2022.

UK developer prepares for freshwater credits with river index pitch

A UK-based project developer is workshopping a ‘living rivers index’, scoring the biodiversity value of stretches of waterways to help lay the way for freshwater credits.

Global biodiversity monitoring initiative can address “patchy” data problems, researchers say

A global biodiversity monitoring initiative could combine national data sources to address gaps in the coverage of ecosystem and species observations, researchers have said.

Impact framework for voluntary biodiversity credits announced by research group

A framework aiming to steer businesses and stakeholders wishing to enter the voluntary biodiversity credit markets will be drafted by an expert group brought together by a Swiss research organisation.

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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

EPP climb down – The center-right European Parliament European People’s Party (EPP) will no longer campaign to scrap a ban on the sale of combustion engine vehicles, according to a draft election manifesto seen by Politico. The ban, meant to come into force in 2035, was targeted for deletion in a previous version of the EPP’s election platform. The document is subject to change until the party agrees on a final version at its congress in Bucharest on March 6-7.

Green light for green steel – The European Commission has approved a €1.3 bln German measure made available in part through the Recover and Resilience Facility to support ArcelorMittal in decarbonising part of its steel production in its Brement and Eisenhuttenstadt sites. Carbon Pulse previously wrote about the German government’s pledge to support the large steelmaker with its emissions reduction efforts. ArcelorMittal had initially applied for the funding in 2021. The company is also trying to cuts its emissions at steel production sites in France, where it is also receiving the French government’s support.

Not so free trade – The UK government is set for a court challenge over the environmental impact of its trade deal with Australia. Campaign group Feedback has been granted a hearing in the High Court, where it will argue the free trade agreement could lead to Australian meat and dairy producers “potentially undercutting” British farmers with goods produced to lower standards and endangering the UK’s net zero commitments. Feedback claims the government’s own assessment of the impact of the Australia trade deal was flawed, as ministers chose “not to apply an internationally recognised methodology to ascertain livestock emissions” linked to imported beef, lamb, mutton, and dairy from Australia. The Australian and New Zealand free trade agreements, Britain’s biggest trade deals post-Brexit, which have been in place since end of May last year, have been criticised for being disadvantageous to UK farmers. A judge has now directed that their full arguments be heard during a High Court hearing, where Feedback will be represented by law firm Leigh Day.

Making things more fairer – The UK ETS Authority is consulting on proposed amendments to enhance the fairness and proportionality of civil penalties within the Greenhouse Gas Emissions Trading Scheme Order 2020. The changes aim to standardise punitive measures and ensure penalties align with the severity of breaches. The first proposed change seeks to standardise the punitive element across three specific penalties. The second amendment focuses on penalties related to under-reporting emissions. It suggests revising the penalty calculation for hospitals and small emitters to align more closely with the fines for major UK ETS participants. The third proposal seeks to ensure appropriate and equitable inflation rate is applied to penalties. Lastly, the fourth amendment aims to ensure consistency in fines for not surrendering a sufficient number of ETS permits.

Rate relief – Pressure on household finances in the UK will be eased this spring as the energy price cap falls by £238 to £1,690 thanks to a mild winter and lower gas prices. Set by energy regulator Ofgem, the cap reflects the average annual bill for 29 mln households in England, and takes effect from April. It is a 12.3% reduction from £1,928 in the current quarter. The average household will still pay far more for their gas and electricity than before Russia’s invasion of Ukraine, however. The rate is at its lowest since March 2022, but far more than the £1,138 for customers paying by direct debt in the summer of 2021, before the crisis began. (Guardian)

ASIA PACIFIC

Jera is stoked to have more gas today – Woodside Energy is selling a 15.1% stake of its Scarborough gas project to the world’s largest LNG buyer, Jera. The Japanese company has also signed on for an additional six LNG cargoes per annum for 10 years. The total cost is $1.4 mln, which is the purchase price of $740 mln and reimbursement to the gas developer for Jera’s backdated share of project development costs since Jan. 1, 2022. The transaction will complete in the second half of this year. “A non-binding agreement for new energy collaboration including potential opportunities in ammonia, hydrogen, carbon management technology and carbon capture and storage was also signed to support common decarbonisation ambitions,” Woodside said Friday. Japan LNG took a 10% stake last year for $880 mln.

You down with NPT – A fossil fuel non-proliferation treaty was presented to Lenora Qereqeretabua, Deputy Speaker of Parliament and Assistant Minister for Foreign Affairs of the Republic of Fiji. She received it as the representative of 12 governments calling for such a treaty as part of a wider meeting for the Pacific Strategy Retreat. “The Naiuli Declaration demands an unequivocal commitment from Pacific leaders for a Just and Equitable Transition to a Fossil Fuel Free Pacific by the thirtieth meeting of the Conference of Parties (COP30) to the UNFCCC Framework Agreement,” a statement said. Pacific nations, in particular the Marshall Islands, fought to see a phase out of fossil fuel use committed to in the Global Stock Take of COP28 in December in Dubai, but were left to settle for a ‘transition away from’.

All talk, no walk – India’s chief economic advisor has expressed disappointment on the fact that green bonds in the country have received poor response, revealing risk aversion of private sector capital, Financial Express reported. He said that much of the hype of getting private capital for climate finance remained confined to only “talks”. Proceeds from green bonds in India are used to fund solar power projects, hydro projects, and other projects which reduce carbon intensity. The cut-off yield on the green bonds attracted a discount of just one to two basis point in yields compared to traditional bonds, due to which the advisor said that it was clear that private capital was not ready to fully embrace both the risks and the opportunities associated with funding energy transition.

AMERICAS

SEC scaledown – The US Securities & Exchange Commission (SEC) has dropped a requirement in draft corporate climate risk rules for US-listed companies to disclose Scope 3 emissions, Reuters reported Friday, citing people familiar with the matter. The move would represent a significant scaledown in the strength of the rules, originally published in Mar. 2022, as Scope 3 emissions account for more than 70% of many companies’ carbon footprints. It would also contrast with EU rules, which make Scope 3 disclosures mandatory for large companies starting this year, potentially complicating compliance for some global corporations. Reuters reported that it could not ascertain whether the latest draft changed the Scope 1 and 2 requirement thresholds.

Leave it – Oil major ExxonMobil urged a US federal court in the northern district of Texas not to dismiss its January lawsuit against activist investors Arjuna Capital and Follow This, despite the groups withdrawing shareholder proposals that sought to force the oil company to reduce emissions, court documents showed. ExxonMobil filed an opposition to the motion to dismiss the lawsuit to stop the “cycle of shareholder activism that burdens it each proxy season”. Notably, the defendants had submitted fourteen shareholder proposals to ExxonMobil in the last eleven years, none of which received close to majority support, with the most recent proposal rejected by 90% of voting shareholders. Since the defendants had promised not to file the same proposal but left open the potential for tweaking the same proposal and resubmitting, the oil company is looking to the courts to provide relief, concluding that the case was hence not moot as the defendants had claimed.

Looking at options – EnLink Midstream, a fossil fuel infrastructure firm, announced Tuesday alongside ExxonMobil that the two firms are exploring opportunities to support the latter’s CCS efforts beyond southeast Louisiana and into additional Gulf Coast areas. The duo, alongside hydrogen and nitrogen product manufacturer CF Industries, initially announced the Pecan Island project in 2022 to capture and store up to 2 MtCO2 in Louisiana. However, the Tuesday announcement detailed that both EnLink and ExxonMobil have agreed to reassess the project’s near-term role with the expectation that other joint opportunities may be prioritised instead. The Pecan Island project page is currently unavailable on ExxonMobil’s website.

Biofuels bucks – The US DOE and EPA released Friday a funding opportunity announcement (FOA) for up to $9.4 mln for the development of advanced biofuels. According to the release, FOA applicants will be required to explain how their proposed project meets the EPA’s Renewable Fuel Standard (RFS) definition of an advanced biofuel. The FOA focuses on two areas, namely pre-pilot scale up of integrated biorefinery technologies and a “Biointermediate Processing Toolbox”. Domestic businesses, educational institutions, and nonprofits are eligible to apply for the funding, which will be administered by DOE’s Bioenergy Technologies Office. The FOA concept paper deadline is 1700 Eastern on Mar. 22, 2024, and full applications are due at 1700 Eastern on May 24. An informational webinar for potential applicants will also be held on Mar. 4 at 1500 Eastern.

Wildfire biochar bonus – California’s County of Placer plans to issue an RFP for a $25 mln Cabin Creek Biomass Facility in North Lake Tahoe to mitigate wildfire risk, a trade publication reported Friday. A memo from the Public Works Environmental Engineering Division noted that a surplus of biomass material from forest fire cleanup, forest management products, and residential defensible space efforts had fewer processing outlets due to the closure of local facilities, which in turn created bottlenecks at remaining plants. The proposal that had been shelved due to lack of finances in 2013, consisted of a 2MW power generation facility that converted biomass fuel into synthetic gas used to produce renewable electricity and biochar. The county outlined additional revenue opportunities from the project to include: power purchase agreements; net metering for on-site consumption, future EV charging stations, and public transportation buses; selling biochar; earning carbon credits from biochar sequestration; earning LCFS credits for powering local transit with renewable energy; among other benefits. (Canadian Biomass Magazine)

Summit woes – Stanton County, in northeast Nebraska, denied a conditional use permit for Summit Carbon Solutions, adding to the list of regulatory challenges for the pipeline developer looking to construct its $5.5 bln, 2,000-mile (3,200 km) Midwest Carbon Express. The project aims to carry 18 MtCO2 from over 30 ethanol plants throughout the Midwest for permanent underground storage in North Dakota. Stanton County commissioners needed more information about health risks and possible foreign ownership of the company, and also want to see more public education and consideration of alternative routes, reported the Des Moines Register. While a Summit spokesperson noted that more than 90% of the landowners in the county have signed voluntary easement agreements, no landowners testified in support of the pipeline prior to the county board vote on Tuesday. Neighbouring Dakota County also delayed its vote until April.

Wy oh Wy – Wyoming’s Senate passed bill 42 on Friday that would require utilities to implement CCS on coal-fired power plants to capture 75% of CO2 generated. The bill however exempts utilities with a customer base below 10,000 and amendments introduced during passage through Senate committees shifted the date by which a percentage of electricity was required to be low-carbon to 2038 from 2030 in prior versions of the bill. Costs to implement CCS at existing coal plants in the Cowboy State amount to around $1 bln, a local outlet reported, but would extend the life of aging coal generation facilities in the state that average 40 years old. (Gillette News Record)

Marine CDR call – The US-based National Science Foundation, on behalf of the White House National Science and Technology Council’s Marine Carbon Dioxide Removal Fast-Track Action Committee (MCDR–FTAC), has issued a request for input in the Federal Register to inform the development of an implementation plan for the Ocean Climate Action Plan (OCAP) regarding marine CO2 removal (CDR) research. The implementation plan will focus on three areas: establishing a comprehensive federal marine CDR research program; clarify permitting, regulatory, and other standards and policies; establishing a Marine CDR Initiative to enable public-private partnerships, strengthen interagency coordination, and promote public awareness and engagement. Responses are due by 2359 Eastern on Apr. 23, 2024.

Connecting for climate – Telecommunications company AT&T and digital engineering firm L&T Technology Services on Thursday announced a partnership to curb global GHG emissions by utilising their combined resources and expertise to develop climate solutions. As part of the joint effort, L&T will participate in AT&T’s Connected Climate Initiative, which aims to reduce GHG output by 1 bln tonnes by 2035 using connectivity solutions, such as Internet of Things (IoT), fiber, 5G, and edge computing. The engineering firm will offer green engineering solutions and energy management strategies to advance waste reduction initiatives and community engagement programmes, the announcement detailed.

Bye Basil – New York Department of Environmental Conservation (DEC) Commissioner Basil Seggos announced Wednesday that he will step down from his position, the Adirondack Explorer reported. He is the longest-serving DEC commissioner, having served since 2015, with a leading role in New York’s climate efforts. The DEC, alongside the New York State Energy Research & Development Authority (NYSERDA), is currently developing New York’s future economy-wide cap-and-invest programme. It is not clear what Seggos has planned next, and it is not clear who will take his place in the interim, according to the local outlet. In Nov. 2018, Seggos had made a similar announcement of his departure before changing course in Feb. 2019.

The coming cull – Employees at one of the country’s most influential environmental groups will find out in the coming weeks whether they’ll keep their jobs, the organisation reportedly told its staff Thursday. Leaders of the Environmental Defense Fund (EDF) told employees this week that they plan to announce any news about possible staff cuts by Apr. 1, when the group’s new scaled-back budget takes effect, according to an email sent to staff Thursday and obtained by E&E News. EDF’s new budget is 11% lower than its last, says the email from EDF President Fred Krupp and Executive Director Amanda Leland. They don’t yet know “what size any necessary resulting staff cuts will be,” they wrote. Employees at the nonprofit are “pretty disappointed” as they await details of expected cuts, one anonymous employee told E&E.

VOLUNTARY

Credit rewards – Soon-to-be-launched digital finance platform TrustXPay (TXP) is partnering with Kyoto Network to allow TXP users to earn rewards in the form of verified carbon credits. A user of the TXP platform will be able to convert their cashback into discounted carbon credits, with those credits holding tangible value for trading with businesses seeking to offset their carbon footprint. The TXP carbon trading platform will provide businesses with a way to purchase credits, while TXP customers will benefit from the sale of carbon credits earned through their transactions in a similar way as available through rewards programs for airline miles.

Greener sourcing – Adidas has partnered with the NGO Canopy to ensure that its textiles, paper, and paper packaging are free of fibre sourced from climate-critical forests, as part of its commitment to sustainable sourcing. The initiative is intended to promote the adoption of low-carbon and circular alternatives. The sports brand is also exploring solutions to reduce waste and reliance on virgin forest fibre, including using discarded clothing for viscose production and agricultural residues for paper packaging.

INVESTMENT

Cash clarity – Carbon credit marketplace Climate Impact X (CIX) raised S$30 mln (US$22.3 mln) in new funding when it attracted new investment late last year, according to DealStreetAsia. The round was led by Japanese bank Mizuho with a S$20 mln contribution, alongside further investments from existing partners Standard Chartered Bank, DBS Bank, and the Singapore Exchange (SGX), according to regulatory filings seen by DealStreetAsia. Additionally, S$30 million in convertible notes were reportedly converted into ordinary shares for StanChart, DBS Bank, and SGX. (Fintech News Singapore)

SCIENCE & TECH

You are what you emit – North American food companies are falling short of making progress toward decarbonisation despite setting emission reduction targets, all while being responsible for one-third of global GHG emissions, an analysis by Ceres found. None of the 50 companies that were evaluated – including Chipotle, Domino’s, Hershey, General Mills, Kellogg, Kraft Heinz, Kroger, McDonald’s, Papa John’s, Starbucks, Walmart, and Wendy’s – have aligned their future expenditures with their climate goals, the report noted. While 37 out of 50 companies are now reporting their supply chain GHG emissions and 32 have targets to reduce those supply chain GHG outputs, only five of the firms demonstrate a business-wide strategy to integrate innovation within plans to achieve emission reduction goals. In addition, although many companies are utilising climate scenario analysis to assess their business resilience to potential future risks, only seven have conducted a 1.5C-aligned scenario analysis addressing transition risks and opportunities, along with physical risks. (edie)

AND FINALLY…

Something to ski on – As warmer weather sees barren ski town slopes across Europe and North America this winter season, more mountains could opt for snowmaking – an industry that sees significantly less energy use today than a decade ago, the Guardian and Grist report. Advances in snowmaking technology and efficiency have seen the cost of producing powder drastically decline over the past decade, as American snowmakers have reduced their dependence on diesel. In Vermont, located in the Northeastern US, efforts to help ski resorts use less energy, including the swap in of more efficient snowmaking equipment, have saved more than 1 bln kilowatt hours of electricity between 2000-2022 – the equivalent of 1 MtCO2e. The next frontier of American snowmaking is in automation, the outlets report, although many European ski resorts have already automated snowmaking equipment, largely thanks to government subsidies that support development of electricity and communication lines across the mountains.

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