Newsletters > CP Daily: Monday May 6, 2024

CP Daily: Monday May 6, 2024

Published 02:48 on May 7, 2024  /  Last updated at 11:23 on May 10, 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

Rimba Raya forestry licence holder dissolves partnership with project proponent

The Indonesian forestry concession holder of the troubled Rimba Raya REDD+ scheme on Monday said it had terminated its agreement with the project proponent, plunging the world’s largest forestry offset project deeper into chaos.

VOLUNTARY

BECCS developer signs world’s largest carbon removals deal with tech giant

A European developer of bioenergy with carbon capture and storage (BECCS) projects has inked a contract with a technology company worth 3.3 million tonnes, in the largest announced durable removals deal in terms of volume to date.

VCM Report: Bad headlines abound, but voluntary carbon prices little changed

Headlines in the trade press about the troubles of Rimba Raya in Indonesia were over-shadowed last week by a BBC investigative programme that exposed many criticisms of individual REDD projects to the general public, while also questioning the efficacy of voluntary efforts in general to the net zero cause, though prices saw little change.

Scientists warn against reducing forests to mere carbon sinks and ignoring their social value

The rise of policies aimed at harnessing forests to absorb carbon is driving the commodification of forests, hindering the slow-down of deforestation, and ignoring their social benefits, scientists warned in a report published on Monday.

ASIA PACIFIC

Japan approves 32 new projects under domestic offset scheme

Japan has given the green light to the registration of 32 projects under the J-Credit scheme, which could generate nearly 1.7 million carbon credits over their lifetimes, as the country continues its efforts to boost domestic offset issuances.

Japanese startup to provide J-Credit rating service

A Japanese startup has launched a rating service for projects in the country’s national offset programme in a bid to bring much-needed transparency to the domestic carbon market.

Vietnam’s top leadership issues carbon market directive

One of Southeast Asia’s few planned mandatory carbon credit markets is ramping up its work after the prime minister signed a new directive at the end of last week.

Australian watchdog to update regulatory guidance for carbon market participants

The Australian Securities and Investment Commission (ASIC) is consulting on updates to its regulatory guidance for carbon market participants in relation to financial services licensing requirements, it announced Monday.

HIR projects under new integrated farm method could see their ACCU issuance cut in half -analysis

Existing human-induced regeneration (HIR) carbon projects that get folded into Australia’s integrated farm land management (IFLM) method could see their credit issuance halved due to more stringent requirements, analysis has warned.

Australia Market Roundup: Novel hydrogen company signs project development agreement in Canada, ACCU spread returns

An Australian hydrogen company has signed a binding agreement to build a commercial scale production facility in Canada, as the spread between spot generic and human-induced regeneration (HIR) credits returns.

New Zealand weighs including international shipping, aviation in climate target

The New Zealand government is mulling whether to include the emissions from international flights and shipping to its emissions target, and is seeking public feedback and submissions in a first for the nation.

AMERICAS

Canada sets federal offset protocol for forests on private land

The Canadian government released on Monday a methodology to generate carbon offsets from forest management practices on privately held land.

RGGI Market: RGAs retreat from record levels as market seeks rebalance

RGGI allowance (RGA) rallied to an all-time high on Thursday but retreated in the following two days, with market participants largely not expecting prices to continue on their recent upward trajectory in the short term.

Alabama legislature approves CO2 capture bill addressing geologic storage

A bill that lays out provisions for geologic carbon capture and storage (CCS) in Alabama passed the legislature last week, and is now headed to the governor’s office to be signed into law.

North Dakota coal plant receives $5.1 mln for CCUS

A baseload North Dakota coal plant secured a $5.1 million award for a carbon capture, utilisation, and storage (CCUS) project, a US senator reported Friday.

EMEA

EU carbon market diplomacy taskforce starts to take shape

The EU’s carbon market diplomacy taskforce was formally launched on April 1 by the European Commission’s climate directorate and an acting head has now been appointed, an EU official confirmed to Carbon Pulse.

Germany launches tender to help Kosovo analyse impact of CBAM, regional ETS

Germany has launched a search for contractors to assist the government of Kosovo in preparing for the EU’s carbon border adjustment mechanism (CBAM) and to establish a regional ETS in the Balkans.

Aviation calls on the EU Commission to extend scope of emissions monitoring

The European Commission should extend the scope of its emissions monitoring tool on flights to also cover non-CO2 gases, according to a letter sent by airlines and NGOs on Monday to the Belgian presidency of the Council and the responsible Commission units.

Euro Markets: EUAs build on recent strength, tracking gas higher on thin volume

European carbon allowance prices gained as much as 3.4% on Monday, approaching a key technical resistance level in the morning before tailing off, as they took cues from an early gas rally, supportive renewable generation and temperature forecasts, and tighter auction supply this week.

INTERNATIONAL

Investments in clean technology manufacturing surged to $200 bln in 2023, IEA says

Global investment in clean technology manufacturing surged to $200 billion last year, a 70% increase from 2022, with solar manufacturing capacity already aligned with the deployment levels required in 2030 to achieve net zero emissions, the International Energy Agency (IEA) has said in a report released Monday.

Japan, Brazil agree to jointly protect Amazon rainforest, develop sustainable fuel

Japan and Brazil have pledged to work together to fight climate change, with plans covering the protection of the Amazon rainforest and the development of sustainable fuel.

Changes to food production could cut emissions by a third, finds report

A report highlights the significant potential within the global agrifood system to slash nearly a third of the world’s greenhouse gas emissions through accessible and cost-effective measures, all while meeting the needs of a growing population.

BIODIVERSITY (FREE TO READ)

INTERVIEW: French environmental company pilots biodiversity credits in Mexico

A French-based environmental company has started piloting a biodiversity credit methodology for nature conservation and restoration projects in Mexico, with the first results expected by the end of October, Carbon Pulse has learned.

EU-funded project to hasten corporate, policy efforts on biodiversity

A newly-launched project aims at accelerating and scaling nature-positive efforts by businesses, financial institutions, and European governments.

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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

and much more! Register here!

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BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

Loss and damage – The board of the loss and damage fund is set to pick its host nation in July as it speeds up the process to ensure hard-hit countries can directly access money to help them recover from the unavoidable effects of climate change. As the 26-member board held its first three-day meeting in Abu Dhabi this week, discussions centered on the administrative steps needed to get the fund up and running, and giving out money as soon as possible. (Climate Home News)

EMEA

Cutting targets – Shareholders in BP are preparing for the company to scale back its climate targets further after a shift in tone from the oil major’s new chief executive, the FT reports. BP the only oil and gas major that has committed to cut oil and gas production, setting a target in 2023 of producing 2 mln barrels of oil equivalent by the end of the decade, a 25% reduction from 2019 levels. The target has already been pared back once, from a 40% cut announced in 2020, but shareholders believe that Murray Auchincloss, who took over from Bernard Looney as chief executive in January, is prepared to be more flexible as demand for oil and gas continues to grow.

Disinfo wars – The EU’s Green Deal has been the target of virulent online disinformation ahead of European parliament elections in June, such as fabricated claims that Brussels plans to introduce a “carbon passport” or ban repairs of cars older than 15 years. An article on Euractiv gathers example of climate disinformation or misinformation that is now worrying EU policymakers, especially when it comes from the Kremlin.

ASIA PACIFIC

Money grows on trees – The government of Sabah in Malaysia wants the state forest department to explore sustainable revenue-generating activities through forests including recreational activities, payments for forest ecosystem services, carbon trading through the implementation of REDD+, green energy supply, and commercialisation of research findings, New Straits Times reported. The government aims to certify all forest management areas under any internationally recognised certification scheme by 2025, the state’s chief minister said. It will also strengthen and review Sabah Timber Legality Assurance System standards to align them with the requirements of the EU Deforestation Regulation. Further, the government targets to develop 18,000 ha of forest plantation areas each year to achieve the target of 400,000 ha by 2036.

Lending support – The Asian Development Bank will help Kazakhstan achieve carbon neutrality by 2060, president of the bank and the chairperson of ADB’s board of directors, Masatsugu Asakawa, has said. He said that the countries must eliminate the use of fossil fuels and make a switch to green energy “fast” in order to meet their climate goals. Since Kazakhstan is an energy-intensive economy, heavily dependent of fossil fuels, ADB will support the government in its 2060 carbon neutrality strategy, news agency Trend has reported.

No-burn model – Thailand’s Department of Climate Change and Environment has said that it plans to prevent forest fires in the northern part of the country by developing a carbon crediting system. Through the sale of carbon credits, the department will carry out activities to support the operation of incineration-free “model villages” which will prevent open burning, forest fires, and reduce smog for climate change adaptation. It will also conduct workshops for creating better understanding of carbon credit mechanisms. It has also set up guidelines for prevention, exploring innovation, and recommend guidelines for adapting to climate change.

Delays – Big battery project developers in Australia are complaining that time-consuming connection agreements are causing timeline blowouts and stalls to Australia’s clean energy transition, Renew Economy reports. Neoen Australia CFO Tony Ng told a webinar last week the connection application process could take 300-400 days, as a result of additional requirements that he said were more to do with bureaucracy than engineering. Neoen has 1.6 GW of battery storage capacity and more than 4 GWh of storage operating or under construction in Australia. One of the reasons battery storage projects are taking longer to get connection details is the complexity of the storage systems, particularly because they are now delivering multiple services, some of which were not even envisaged when the first battery project in Australia was built less than seven years ago.

AMERICAS

CO2 portal – The US Department of Energy’s Office of Fossil Energy and Carbon Management (FECM) on Monday released the Carbon Management Resource Portal, a platform to find and access reports, fact sheets, data, and information on topics related to carbon management. The portal aims to help communities and other stakeholders access information to better understand carbon management technologies, said the FECM. Users will be able to explore topics such as carbon capture, hydrogen with carbon management, carbon transport, storage, and conversion, CO2 removal, and more.

Planning action – More than 200 Tribes, the American Samoa, the Northern Mariana Islands, Guam, and the US Virgin Islands published climate action plans supported by the US EPA’s Climate Pollution Reduction Grants programme, the agency announced Monday. EPA received 81 plans in total from Tribes and Tribal consortia representing more than 200 Tribes, along with the four plans from territories. The Climate Pollution Reduction Grants scheme set the goal that 40% of the overall benefits of certain federal climate, clean energy, and other investments flow to disadvantaged communities that are marginalised by underinvestment and overburdened by pollution. In 2023, under the first phase of the $5 bln programme, EPA provided $250 mln in grants to 45 states, the District of Columbia, Puerto Rico, 82 metropolitan statistical areas, four territories, and more than 200 Tribes.

Methane revisions – The US Environmental Protection Agency (EPA) has made revisions to its Greenhouse Gas Reporting Program that was introduced in December, the agency said Monday. The revisions were added to strengthen the calculation methodologies to improve the accuracy of emissions data reported to the programme, and include previously unreported sources such as additional large release events, nitrogen removal units, produced water tanks, mud degassing, and crankcase venting. The EPA is also finalising reporting from additional industry segments for certain emissions sources that previously were only required to be reported for some, but not all, of the industry segments in which those sources exist. The agency is also finalising other technical amendments, corrections, and clarifications to the programme, it added, with most of the changes to take effect on Jan. 1, 2025.

EPA challenge 1 – The US Environmental Protection Agency’s (EPA) performance standards for oil and gas production were hit with challenges last week from a coalition of oil and gas producer associations across several US states, the EPA announced Monday. Petitioners expect to show the agency’s final rule exceeded its statutory authority and have asked the Columbia Circuit US District Court to declare the rules unlawful and vacate the final action. Separately, petitioners from the Michigan Oil and Gas Association and oil and gas exploration firm Miller Energy Company filed a similar suit in the same court against the rules.

EPA challenge 2 – The EPA also announced Monday a set of challenges to its clean car standards. The State of Texas filed against the EPA’s emissions standards for light-duty and medium-duty vehicles in the Columbia Circuit US District Court last week. Separately, trade groups Texas Corn Producers, Texas Sorghum Producers, and National Sorghum Producers filed a similar challenge in the fifth circuit court. Dozens of green groups have rushed to defend the rules that also faces a lawsuit from 25 states.

EJAC next steps – California’s ARB announced Monday an Environmental Justice Advisory Committee (EJAC) public workshop to be held on May 16 between 1300-1800 Pacific. The regulator will provide a brief overview of the cap-and-trade programme’s Standardised Regulatory Impact Assessment (SRIA) modelling released last month. EJAC staff will also discuss the development of an ETS resolution to present at the September joint board meeting of both the EJAC and the regulator.

VOLUNTARY

Phantom credits – Shell sold millions of carbon credits tied to CO2 removal that never took place to Canada’s largest oil sands companies, raising new doubts about a technology seen as crucial to mitigating emissions, the FT writes. As part of a subsidy scheme to boost the industry, the Alberta provincial government allowed Shell to register and sell carbon credits equivalent to twice the volume of emissions avoided by its Quest carbon capture facility between 2015 and 2021, the province’s registry shows. The subsidy was reduced and then ended in 2022. As a result of the scheme, Shell was able to register 5.7 mln credits that had no equivalent emissions reductions, selling these to top oil sands producers and some of its own subsidiaries. Credits are typically equivalent to one tonne of carbon. Some of the largest buyers of the credits were Chevron, Canadian Natural Resources, ConocoPhillips, Imperial Oil, and Suncor Energy.

A matter of trust – A new research by Hyphen Global AG explores the transformative power of atmospheric-based digital monitoring, reporting, and verification (AdMRV) in reshaping carbon markets. The report particularly highlights the importance of enhancing market confidence with better data, improved verification processes, and reduce financial risks.

AND FINALLY…

The grip of gluttony – Canada’s food supply is bad for both the people and the planet, according to a study published in the Global Food Security journal. The study assessed the alignment of the country’s food supply to the recommended daily food intake, and also evaluated its environmental impacts, over 58 years. It found an insufficient daily per capita supply of nuts, legumes, vegetables, and added oils, and an excessive supply of red meat, added sugar, dairy, roots and tubers, eggs, and chicken. Notably, in comparison to the Canada Food Guide, the supply of red and processed meat – among foods to decrease – was higher than that of nuts and legumes – suggested alternative protein sources – by 457%. The per capita daily food supply yielded 34 kgs of CO2e GHG emissions, higher land use, and water scarcity, among other environmental issues. The study underscored the necessity to conform to the recommended dietary patterns, adding that it can potentially reduce the current environmental impacts by more than 50%.

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