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TOP STORY
RGGI emissions rise 9% YoY in Q1
Emissions under the US Northeast and Mid-Atlantic power sector cap-and-trade scheme jumped 9.1% year-on-year (YoY) in the first quarter of 2024, as CO2 output in the majority of participating states rose, programme data showed Wednesday.
AMERICAS
Major Canadian power producer folds C$2.4 bln CCS project
An Alberta-based power generator scrapped its C$2.4 bln ($1.7 bln) carbon capture and storage (CCS) project, citing it as not economically feasible, following attempts over several months to secure a carbon contract for difference (CCfD) agreement with the Canadian government.
US details guidance for SAF credit generation under IRA
The US Department of the Treasury and Internal Revenue Service (IRS) on Tuesday released their updated guidance for sustainable aviation fuel (SAF) tax credits to establish eligibility for fuel producers, incorporating avenues to reward the use of renewable natural gas (RNG) and carbon capture and storage (CCS).
LCFS Market: Bear case for prices as credit surplus bank shows no signs of unwinding
California Low Carbon Fuel Standard (LCFS) prices have continued on a downward spiral, with traders expecting further downside risk as the programme’s credit surplus bank build shows no signs of slowing.
VOLUNTARY
Removals buyers’ group seals $58.3 mln offtake with US CDR developer
A buyers’ club and a Houston-headquartered CO2 removal (CDR) developer announced Wednesday the signing of an $58.3 million multi-year offtake agreement, as the group continues its support of the developing market.
INTERVIEW: Kenya, US are attractive destinations for upstart DAC developer
Kenya is a top destination for carbon removal projects because of its wealth of renewable energy and natural resources, while a supportive regulatory environment makes it and the US attractive destinations for investment, according to a direct air capture (DAC) developer.
Developers mixed in willingness to engage with Article 6 market, says standard body
A carbon standard has said it sees a mixed approach among developers on their readiness to engage with Article 6, with some preferring to only transact on the voluntary market due to perceived investment uncertainties and risks relating to the UN mechanisms, while others are attracted to the high potential prices.
Payment firm hikes carbon price and pours funding into carbon removal projects
An online payment service company has doubled its internal carbon tax to $200, enabling the company to donate $2 million that will go to 13 carbon removal startups, the firm announced on Wednesday.
Project developer, financial advisory launch facility to fund NBS in Amazon, Africa
A carbon project developer and international financial advisory have teamed up to launch an early-stage funding facility to invest in nature-based solutions in the Amazon and Africa, they announced Tuesday.
Voluntary carbon ratings agency launches tool to flag project investment risks
A ratings agency has unveiled a new assessment tool to flag benefits and risks associated with voluntary carbon projects to investors.
Climate fund selects 13 carbon removal projects for invesment from 2024 cohort
A fund created as an alternative to carbon offsetting by a EU-based climate project platform has selected 13 activities from the durable carbon removal (CDR) sector from which it will pre-purchase removals in a bid to help scale the nascent industry.
Gold Standard launches new voluntary carbon methodology to credit home food recycling
Voluntary carbon credit issuing body Gold Standard has unveiled a new methodology that will issue credits relating to home food recycling, it said on Wednesday.
EMEA
EU carbon prices to triple by 2035, analysts predict, publishing amongst first ETS Phase 5 forecasts
EU carbon prices are expected to triple to around €200 in 2035, analysts said this week, making them among the first teams of experts to forecast out that far.
Market Stability Reserve activation threshold a “key weakness” of EU ETS -analysts
The current activation point for the principal supply balancing mechanism in the EU ETS, the Market Stability Reserve (MSR), is too high and represents a “key weakness” of the market, according to analysts at a bank.
EU ETS2 prices could almost quadruple with weak energy efficiency policies in place -report
The 2030 prices of the EU’s new heating and transport carbon market (ETS2) could be around four times higher if weak energy efficiency policies are implemented across the bloc, compared to a more ambitious scenario, new analysis has found.
London Metal Exchange looks to help aluminium market prepare for EU’s CBAM
The London Metal Exchange has kicked off a consultation on how to integrate the EU Carbon Border Adjustment Mechanism (CBAM) requirements into its rules, in order to help the aluminium market and value chain adapt, it announced on Wednesday.
RWE fossil generation slump continues with 20% drop in Q1
RWE’s fossil power generation covered by the EU ETS fell a further 20% year-on-year in the first three months of 2024, according to preliminary data published by the utility, even after its annual output dropped over one-quarter in 2023.
UK waste-to-energy operator announces delivery plan for millions of carbon removals
A UK-based waste-to-energy operator has announced plans to deliver 1.2 million tonnes of carbon removals across the UK by 2039, helping the country on its path to net zero by mid-century.
Euro Markets: EUAs drop in quiet trade as COT data shows third straight cut in funds’ net short
European carbon allowance prices fell in light trading on Wednesday amid a European bank holiday, while weekly Commitment of Traders data that showed a third successive drop in investment funds’ net short positioning triggered some speculation that prices may have reached a short-term floor.
ASIA PACIFIC
Australian industries divided over the need of a CBAM, consultation submissions show
Major Australian companies and industry groups are at odds over whether the government should pursue a Carbon Border Adjustment Mechanism (CBAM) to address carbon leakage, according to submissions under a government consultation.
Japanese startup raises $1.5 mln in seed funding for completing DAC prototype, business expansion
A Tokyo-based direct air capture (DAC) startup has raised 250 million yen ($1.5 mln) in seed funding to complete the prototype of its DAC system and business expansion, the firm announced.
To decarbonise Asia’s JETP members, halt new coal and incentivise renewables, paper argues
Phasing out coal will be integral to the energy transition and Just Energy Transition Partnership’s (JETP) Southeast Asian members, but halting new coal construction in tandem with a renewable energy build-out will be more productive than a focus on shuttering existing coal plants, according to a journal article published this week.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Corporate alliance forms to explore potential of biodiversity credit market
The World Economic Forum (WEF) and consultants McKinsey & Co have taken the lead in initiating a Frontrunners Coalition seeking to contribute to shaping the development of and building confidence in the emerging voluntary biodiversity credit market.
Australian firm launches nature certificates tied to microplastics clean-up
An Australian data services company on Wednesday announced the launch of a subscription-based nature certificate intended to help fund efforts to prevent plastic pollution off the coast of Sydney, but that can be extended to other locations globally.
Asset manager sets aside 10% of 1,900-ha regenerative agriculture project for biodiversity
Climate Asset Management has acquired 1,900 hectares of farmland collectively across areas of Spain and Portugal for regenerative agriculture, setting aside 10% for biodiversity while exploring ecosystem services.
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CONFERENCES
Carbon Forward Turkiye – May 9-10, Izmir: With the imminent launch of the pilot ETS in Q4 2024 and a burgeoning voluntary carbon market in the country, this inaugural event will give attendees an understanding of the significant impact these schemes, as well as the EU’s CBAM, will have on your business. Carbon Forward Turkiye also offers a chance to position and network with peers, policymakers, corporates, trade bodies, and analysts. Secure your spot
Carbon Forward North America – June 11-12, Toronto and Online: 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. We are allocating a limited number of free passes to attendees representing medium- and large-sized companies that buy and retire voluntary carbon credits. If your firm is an end-user of carbon offsets and is not a major energy producer or supplier, contact us to apply for a free pass (1 per company). Otherwise, to express an interest in speaking or sponsoring, please email michelle@carbon-forward.com
Carbon Forward Expo – October 8-10, London and Online: Save the date! More info coming soon…
Argus Asia Carbon Conference – May 13-15, Kuala Lumpur: Join over 200 industry leaders and senior government officials at the Argus Asia Carbon Conference in Kuala Lumpur on 13-15 May 2024. Connect with key players and explore new opportunities in the region as we discuss innovations in carbon technology, advances in voluntary and compliance markets, the impact of CBAM, financing, nature-based project developments, and more. With ministerial addresses and keynote sessions from Petronas and SaraCarbon, this is your opportunity to gain valuable insights on pan-Asia’s evolving carbon markets. Register
Argus Europe Carbon Conference – May 21-23, Nice: Plan your carbon strategy through market-driven decarbonisation solutions at the at the Argus Europe Carbon Conference on 21-23 May in Nice, France, as we examine the EU ETS and other global compliance structures, voluntary carbon markets and their intersection with carbon abatement industries. This year’s agenda covers the integration of the maritime sector into the EU ETS, the impact of Europe’s exported carbon price through CBAM, developments in carbon removal technologies, voluntary certification methods, and developments around diverse, high-quality credits from Verra and many other leading standards. Register your place to explore new opportunities within Europe and globally.
Eurelectric “Lights ON” Power Summit – May 22-23, Lagonissi, Greece: This is our biggest event gathering every year around 500 energy experts across Europe. This year, we’ll welcome more than 60 speakers to discuss:
- Getting Europe’s power infrastructure ready for net-zero
- Delivering on the EU 2040 climate targets
- Powering Europe’s industrial competitiveness with affordable energy
- Ensuring security of supply in more hostile energy geopolitics
- Implementing the electricity market reform
- Speeding up digitalisation
- Integrating renewables with biodiversity
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Challenging pledge – Energy ministers from the G7 vowed this week to end the use of coal power generation by 2035, marking a high-profile pledge to speed up the transition away from fossil fuels. Coal was the fourth-largest source of electricity generation in the G7 in 2023, accounting for an average of 15% of the group’s electricity last year, according to energy think tank Ember. While the global average for coal-fired electricity generation in 2023 was 37%, or more than twice the G7 average. But among G7 countries, there is a wide divergence in coal dependence, with France the least reliant, sourcing only a fraction of a percent from the fuel last year, versus coal-fired plants generating around 29% of electricity in Japan, 25% in Germany, and 16% in the U.S. last year, according to Ember data. The enduring reliance on coal to generate a double-digit share of electricity in three of the world’s largest manufacturing economies shows the substantial challenge faced by G7 countries in meeting their collective pledge of eliminating the fuel from their power mix over coming years. (Reuters)
EMEA
Crushing enterprise – UK Energy Security Secretary Coutinho on Wednesday said that the government does not want to take a path where a “net zero leviathan” crushes the nation’s “brilliant enterprise economy”. Speaking at the Innovation Zero sustainability conference in London, she expressed pride in the statistics that the UK has attracted £300 bln in low-carbon private investment, yet recent research has shown that the green goods and services sector contributes only 3.9% to the UK’s GDP, while its EU counterparts lead the way, with the UK falling back on its green industrial strategy. Lately, the UK government has pulled back on some key net zero policies, including targets for EV deployment, building efficiency standards and framework, as well as heat pump adoption. Coutinho said that the government has chosen to give people more time and that it was important for companies to create products that British consumers choose. (edie.net)
UK’s green loss – Prime Minister Rishi Sunak’s rollback on net zero targets is causing the UK to lose out on green investment to other countries, Chris Stark, outgoing head of the Climate Change Committee, told the Financial Times. Once a leader on renewable energy, developers and capital markets are turning away from the UK — while the Inflation Reduction Act attracts new investment to the US. The government’s latest round of contract auctions failed to attract bids from offshore wind developers, in a show of the waning appetite, Stark said. The international perception that the UK is stepping back on climate action is causing it to lose its “soft power”, he added. (FT)
Danish carbon tax – The government of Denmark is moving forward with plans to introduce a carbon tax on agriculture despite the Danish Climate Ministry’s annual report showing that the country is on track to meet its 2030 target of reducing GHG emissions by 70% compared to 1990 levels, Euractiv reports. A government-appointed expert group recommended in February to tax agricultural production at a rate of up to 750 kroner ($109) per tonne of emitted CO2-eq., coinciding with a suite of farmer protests in the EU against ambitious climate policies. Denmark’s CO2 emissions would be reduced by 68% based on current policies and initiatives, meaning it would not take much to reach the expected 70% target, according to ministry data, but despite these positive projections, the government is continuing to pursue its plan to introduce a carbon tax in the agricultural sector.
Recovering flare gas – Consulting and engineering firm Wood has secured a 23-month contract with TotalEnergies to support flare gas recovery in the UK North Sea, Wood announced on Wednesday. The work will be part of the Elgin-Franklin Flare Gas Recovery System project. The gas will be redirected to a new offshore compressor system to be treated and reused. Wood has completed a field study and front-end engineering design work on the project.
ASIA PACIFIC
More capex needed – The aluminium sector in India will need an additional capital expenditure of about $29 bln to attain net-zero carbon emissions, a study released by the New Delhi-based Council on Energy, Environment, and Water (CEEW) has said. It added that green energy can abate 49% of the total emissions from the industry. Although the country’s per capita aluminium consumption is low compared to global average, the industry emitted nearly 77 MtCO2e in 2019-20, under which electricity consumption by plants accounted for 80% of the total emissions, while process emissions and fuel consumption accounted for the rest. Net-zero aluminium could be 61% more expensive, the Business Standard reported.
Mangrove MoU – Singapore and Indonesia have signed a Memorandum of Understanding to set up a framework for their non-government organisations and other stakeholders to promote sustainable use of mangroves in local communities, the Singaporean government said Wednesday. A pilot will launch in Indonesia’s Setotok Island in Batam. “Key activities to be carried out under the MOU include promoting community awareness on the importance of developing sustainable mangrove ecosystems and sharing of best practices on sustainable use of mangrove products and economic opportunities from mangrove ecotourism, which can improve local community livelihoods,” it said. Both governments will also mobilise academic and research institutions for work around the preservation and rehabilitation of mangroves.
Gust of wind – Australia has issued feasibility licences to six potential offshore wind projects in Victoria, a major step in establishing a new renewable energy industry in the country, Renew Economy reports. Another six licences are expected to follow, pending further engagement with Traditional Owners, totalling some 25 GW of renewable capacity, according to the government. The number of projects in the 15,000 km2 offshore wind zone has been whittled down from 37 applications the government said it had received. The first round winners include the 2.2 GW Star of the South project, being developed by Copenhagen Infrastructure Partners, Cbus, and its original Australian co-founders. Other winners include Danish offshore wind giant Orsted, as well as Australian gentailer AGL. The licences allows developers to begin detailed assessments of their proposed projects, including environmental assessments and management plans. Once proven feasible, they can apply for a commercial licence to build and operate the offshore wind farm.
Appointed to the board – WWF NZ has appointed former Climate Change and Environment Minister and Green Party co-leader James Shaw to its Board of Trustees, a media release run by Scoop Media said. WWF noted that Shaw was the driving force behind New Zealand’s landmark Zero Carbon Act, which passed into law in 2019 and set the country on a pathway towards net zero emissions. The Act established the Climate Change Commission, the setting of emissions budgets, and Emissions Reduction Plans. Shaw held his valedictory speech in Parliament this week, after announcing he would be quitting politics earlier this year, and will be joining WWF-NZ from July 1.
AMERICAS
AVIATION
Flyer fee – AirAsia CEO Tony Fernandes announced the airline will soon implement a sustainability fee on airfares specifically to fund carbon offset projects, aligning with initiatives like CORSIA. This fee will be part of various other charges by AirAsia and AirAsia X. Fernandes outlined a three-pronged sustainability strategy focusing on profitability, conservation of tourist destinations, and achieving carbon neutrality by 2050 through offsets, technology, and fuel efficiency. He noted significant reductions in the airline’s CO2 emissions in 2022. Additionally, Fernandes highlighted the importance of ESG factors in business ethics and urged for viable SAF options and improved air traffic management to enhance fuel efficiency. (Business Times)
INVESTMENT
The yeast is loose – LanzaTech, a biotechnology firm in Chicago, uses the yeast-like bacteria Clostridium autoethanogenum found in rabbit droppings to convert carbon emissions into ethanol. This innovation, the WSJ reports, could significantly benefit industries like airlines, steel production, and apparel manufacturing by providing a sustainable source of fuel and materials. But despite its promising technology that could greatly reduce carbon emissions and reliance on traditional fuels, LanzaTech is struggling financially. The company, which went public via a special-purpose acquisition company (SPAC) in 2023, has seen its stock price fall by 70% due to missing revenue targets and broader market scepticism towards SPACs and new clean energy technologies. However, its sustainable aviation fuel project, LanzaJet, and partnerships with major brands like Lululemon and Unilever, highlight its potential impact. Analysts believe the company is undervalued and point to its scalability and the importance of recent US Department of Energy funding, but caution that high interest rates may deter investment in such innovative projects.
AND FINALLY…
Don’t pass Go – An Iraqi conservation NGO called “Together” debuted an adapted version of the board game Monopoly last month at the Erbil Book Fair in the children’s corner to teach kids about reducing emissions, according to a YouTube video uploaded by independent Iraqi news network 964media. According NGO President Sadiya Faleeh, it is important to teach young minds about environmental conservation as Iraq needs a carbon market, and soon.
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