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CARBON FORWARD TURKIYE
Steep forward curve for Turkish ETS as permit prices seen tracking EUAs by mid-2030s
Allowances prices in Turkiye’s ETS are expected to eventually mirror those for EUAs in the EU carbon market, meaning they could climb to as high as €150/tonne by the mid-2030s, experts said this week.
Turkish renewables projects dampened by voluntary market woes
Turkish renewable energy companies say they are struggling to develop projects because of the high costs, long timelines, and administrative burdens of certifying their emission reductions, combined with the low prices and uncertainty in the voluntary carbon market.
Sustainable development is key priority for Turkish carbon markets stakeholders
Turkiye’s national development, including socioeconomic and ecological dimensions, are at the forefront of stakeholder interest in the voluntary carbon market (VCM) and potential Article 6 engagement, Carbon Forward Turkiye heard Friday in Izmir.
Registries will include carbon project lifecycle updates to boost transparency in voluntary market
Two carbon registries will begin offering updates about projects throughout their lifecycle in a bid to improve voluntary market (VCM) transparency post-validation and verification, according to representatives speaking at Carbon Forward Turkiye on Friday.
EMEA
EUA cancellations associated with coal closures set to cut supply by 160 Mt by 2030 -analyst
Retirement of coal- and lignite-fired power plants by EU member states could lead to as many as 160 million EUAs being voluntarily cancelled by 2030, with even more set to be deleted after that date, forcing prices higher as supply is removed from the market, according to an analyst.
Euro Markets: EUAs reach four-month high before giving up €4 amid afternoon profit taking
European carbon allowance prices climbed to their highest in four months on Friday morning as determined buying took prices above two key technical levels, before sliding by more than €4 in the afternoon and giving up all their gains since Wednesday amid profit-taking ahead of the weekend and next week’s full auction programme.
Belgian lime products manufacturer signs MoU with British carbon capture firm
A Belgian manufacturer of lime, limestone, and mineral-based products has signed a Memorandum of Understanding (MoU) to collaborate with a British carbon capture and storage (CCS) firm.
AMERICAS
Shell dismisses Greenpeace, FT reporting on “phantom” carbon credits as inaccurate
Shell has dismissed as inaccurate reports by Greenpeace and the Financial Times claiming the oil major made over C$200 million ($146 mln) selling “phantom” carbon credits that it earned for emissions reductions that never happened.
Virginia lawmakers poised to reach budget deal that excludes rejoining RGGI -media
Democratic lawmakers in Virginia and the state’s Republican governor reportedly reached a yet-to-be-published budget deal Thursday that is expected to exclude proposed language on rejoining the regional power sector cap-and-trade programme.
INTERVIEW: DAC developer launches pilot facility, plans to scale new chemical approach
A Tennessee-based direct air capture (DAC) company launched a pilot facility Wednesday, its initial deployment of an approach that the firm’s CEO told Carbon Pulse offers a more energy efficient alternative in the emerging industry.
Compliance players build length across North American carbon markets, speculators book V24 profits
Compliance entities have added to their holdings across North American carbon markets, while managed money continue to reduce vintage 2024 positions in most schemes in favour of longer-dated California Carbon Allowances (CCAs), according to weekly data from the US Commodity Futures Trading Commission (CFTC).
Mexican body introduces national carbon standard in push for voluntary market transparency -media
A Mexican standards body has launched a new version of an international offsetting standard adapted to the national context as the country moves to pass new transparency regulations governing the voluntary carbon market (VCM), according to a local media report.
Chilean province moves to establish local offsetting exchange -media
The Los Lagos region of Chile aims to implement Chile’s first offsetting exchange to facilitate the purchase of carbon credits and decarbonise local industries, per a local paper from the city of Osorno.
ASIA PACIFIC
BRIEFING: What Australia’s Future Gas Strategy tells us about the Safeguard Mechanism’s impact on emissions
The Safeguard Mechanism will be a strong incentive to reduce carbon emissions, according to the Future Gas Strategy Australia released this week, but an accompanying technical report raises significant challenges and unknowns that could undermine its success.
Australia Market Roundup: April ACCU trading volumes up year-on-year, issuance down, as market awaits method news
Traded volumes for Australian Carbon Credit Units (ACCUs) on spot and forward markets reached a 15-month high in April, according to observers, but the monthly unit issuance has fallen considerably, as the market keeps an eye on the raft of methodology work underway by the government.
CN Markets: CEAs retreat from record highs as policy uncertainty lingers
CO2 allowance prices in China’s national emissions market fell below the 100 yuan ($13.84) mark over the past week after hitting a record high in late April, with traders and analysts expecting short-term fluctuations amid policy uncertainties.
Methane slashing rice tech startup wins Series A funding
A sustainable rice platform has raised $14 million in Series A funding for improvement of its measuring, reporting, and verification (MRV) technology and its expansion into Southeast Asia, with a focus on Vietnam and Indonesia.
Thai govt, tech firm to financially support coastal communities through carbon credit sales
The Thai government has teamed up with a Bangkok-based technology firm to provide financial support to the coastal communities through the creation and sale of carbon credits from a flagship mangrove restoration programme.
Major Japanese utility to close five coal-fired units by 2030, accelerate adoption of ammonia coal co-firing
One of the largest electricity utilities in Japan is planning to gradually phase out five ‘inefficient’ coal-fired power units that contribute around 30% of its thermal power generation capacity, while making some other utilities run partially on ammonia or biomass in a move to cut CO2 emissions.
Nepal urged to involve private sector in Article 6
Nepal should make it easier for private sector actors to engage in Article 6 projects to help make sure the country can meet its commitments under the Paris Agreement, the UN Development Programme (UNDP) said Friday.
VOLUNTARY
INTERVIEW: Carbon revenue, bio-based materials trend fund bamboo planting in Europe
Revenue from carbon credit sales combined with selective harvesting to meet growing demand for bio-based material can help support support bamboo planting in Europe, according to a developer of bamboo-based carbon projects.
BIODIVERSITY (FREE TO READ)
Only one-third of largest marine protected areas is fully protected, study says
The international community’s commitment to protecting at least 30% of the waters by 2030 must go beyond mere numbers and strive for quality and effectiveness, as only one-third of the largest global marine protected areas is highly protected, according to a paper published Thursday.
Forest conservation project in Germany sells first biodiversity credits
Two German companies have purchased nearly 20,000 biodiversity credits generated through a domestic forest conservation project, Carbon Pulse has learned.
UK investor launches nature blueprint for renewables
A guide for adopting nature-positive practices across renewable energy sites has been published by Foresight Group, alongside details of an endangered butterfly conservation project on a solar farm.
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CONFERENCES
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
Carbon Policy Development Conclave – New Delhi, May 16: Carbon Markets Association of India (CMAI) presents this exclusive event in collaboration with Diligentia Services a step towards accelerating Net Zero Transition. Set to unfold at Le Meridien in New Delhi, this event pioneers sustainable policy action, driving us closer to climate goals. Be part of this unprecedented initiative, aimed at empowering stakeholders from key Ministries, Embassies, Industry Leaders, Think-Tanks, and Policy-Makers to harness environmental credits for sustainable endeavors. Limited Paid Delegate Seats are available. Secure yours now by registering here. For collaboration opportunities, contact us at secretary@cma-india.in. Learn more at www.cma-india.in.
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
EMEA
CCS delays – The UK is considering delaying support for some carbon capture projects until beyond this year as costs soar on the impacts of inflation and higher borrowing costs, Bloomberg News reports. The government is still committed to backing its regional cluster system for CCS, where groups of projects in industrial areas share infrastructure to transport CO2 to storage, but the first major stage may be smaller than previously planned and some projects potentially delayed, said people familiar. Priority is being given to two of the clusters — the East Coast Cluster in the northeast of England and Hynet in the northwest, amounting to eight projects in total. The UK is working to complete negotiations on the support mechanisms for these projects so financial decisions can be made and they could start operating by decade end. Less mature projects are those most likely to be delayed, though could still receive backing at a later date, said the people.
H2 heating shelved – A third pilot project to trial the use of hydrogen heating in UK homes has been shelved by the government in the latest sign that households will rely on electricity for low-carbon heating in coming decades, the Guardian reports. The government said it would push back plans to develop a ”hydrogen town” to test whether hydrogen could help heat homes at scale before taking a final decision post 2026. It follows the abandonment of plans by the government for two smaller ”hydrogen village” trials in Teesside and Cheshire, after local residents objected. Low-carbon heating may still have a role to play in cutting UK heating emissions, alongside heat pumps and low-carbon heat networks, but at a slower pace in some locations, the government said. A decision is due by 2026 on whether the net zero climate plans will include replacing household gas with hydrogen.
ASIA PACIFIC
Making inquiries – The New Zealand government has announced it told the Finance and Expenditure Committee to conduct an inquiry on climate change adaptation. The committee will develop and recommend guiding objectives and principles for the design of a climate adaptation framework in the country. Climate Change Minister Simon Watts said in a media statement that the framework will set out the government’s approach to sharing the costs of preparing New Zealand for the impacts of climate change.
We made it – Korean hydrogen producer Approtium has completed the construction of a new plant, which is capable of storing 270,000 tonnes of CO2 per year, local media reported. With the completion of the Ulsan-based utility, Approtium has established a system that can supply roughly 400,000 tonnes of liquefied CO2 per year. The Korean company recently also signed a technical agreement for ammonia cracking projects with Denmark’s Topso.
Almost there – Khyber Pakhtunkhwa in Pakistan will soon open up for national and international investors to channel finance towards carbon credit trade as the technical feasibility of carbon stocks in the province is near completion, Urdu Point reported. Forest department in cooperation of Sustainable Energy and Economic Development (SEED Pakistan) are working over preparation of a baseline survey of carbon stock of KP to attract carbon offset buyers and once that is done, the province will be able to present its carbon stock to international carbon crediting programmes including Gold Standard and Verra’s VCS programme.
AMERICAS
Powering through – Energy firm Enbridge’s proposed CCS hub in Alberta remains on the table despite Canadian electricity producer Capital Power’s decision to scrap its $2.4 bln CCS project, Carbon Conversation reported Friday. Executive Vice President of Enbridge Colin Gruending expressed disappointment towards the cancellation of Capital Power’s project, but added that another proposed carbon capture scheme in the area, at Heidelberg Materials’ cement plant, was still in the works and kept Enbridge’s own proposed storage hub alive. Enbridge and Capital Power in 2021 had agreed to jointly evaluate carbon capture solutions in Alberta.
Battling Big Oil – Michigan is preparing to sue the fossil fuels industry for its contribution towards climate change in the state, the Center for Climate Integrity reported Thursday. Attorney General Dana Nessel (D) is now seeking proposals from attorneys and law firms to serve as special assistants to sue the oil and gas firms for alleged climate change impacts in Michigan. Nessel would become the 10th attorney general in the country to sue Big Oil companies over purported “climate lies” once the state’s lawsuit is filed, adding the Great Lakes State to a growing list of communities across the US turning to the courts to hold companies like Exxon, Chevron, and Shell accountable for claimed climate deception, including California, New Jersey, and the city of Chicago.
Dismissed again – A federal appeals court for the Central District of California rejected a lawsuit by California youth that sought to hold EPA accountable for GHG emissions, E&E news reported Friday. Obama-appointed Judge Michael Fitzgerald found that the young California climate activists lacked standing to bring their lawsuit against the agency because their concerns could not be fixed by a court. A similar argument was used last week to dismiss the 2015 Juliana v. United States lawsuit by young climate activists from Oregon.
VOLUNTARY
Greener drinks – PepsiCo’s plant in northern Spain will be the first in its portfolio to become net zero emissions by 2025, the company announced. The achievement follows investments of €27 mln dedicated to innovation and sustainability projects in the plant over the past five years, in addition to a €5 mln decarbonisation-focused electrification project. The plant has used electricity from renewable sources since 2015, and the new electrification project will now replace its remaining natural gas with electric energy, enabling 100% electrification of the facility. The beverage company expects that electrification of the plant’s operations will eliminate 1,849 tonnes of CO2 per year. (ESG today)
INVESTMENT
Early help – Imperative Global and Freepoint Commodities have established an innovative structured debt facility designed to finance early-stage development activities for carbon credit projects in emerging markets. This facility aims to make Imperative’s voluntary carbon market projects investment-ready by supporting their feasibility, design, and planning stages, which in turn de-risks them ahead of securing full-scale funding, the partners said. Additionally, this facility is intended to be repaid with carbon credits from Imperative’s portfolio. Alongside a similar facility with CrossBoundary Group, this arrangement enables Imperative to advance these projects rapidly. The first project under this facility is a 20,000-hectare mangrove restoration in Southeast Asia, with funding already initiated. This facility complements a prior $500 mln project funding agreement with Freepoint and Rubicon Carbon, enhancing the capital available for early-stage development.
Construction contest – A number of venture capital and construction companies are banding together to launch the Construction Startup Competition 2024, a platform for construction industry startups to pitch to industry investors and and potential business partners. Open for applications from May 7-June 30, 3024, the contest is open to participants with solutions in green construction, enhanced productivity, construction supply chain, and future of construction. Led by Cemex Ventures, Caterpillar, Dysruptek by Haskell, Ferrovial, Hilti, VINCI Group’s Leonard, NOVA by Saint-Gobain, Trimble, and Zacua Ventures, the competition has so far named 36 winners, which have collectively raised more than $396 mln in financing. More than one third of winners have received investment from and/or are working with one or more of the competition hosts.
AND FINALLY…
Burp medicine – An ag-biotech startup says it has developed a vaccine to help cut down methane emitted by burping cows, sheep, goats, and other livestock, Bloomberg reports. Boston-based ArkeaBio’s drug targets methane-producing microorganisms that live in the animals’ saliva and digestive tracks. The company says the results from current trials on cattle are better than expected. The vaccine will not be on the market for at least another two and a half years, ArkeaBio said. But if it works, it could be distributed throughout the agricultural supply chains.
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