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TOP STORY
LEAK: EU ministers to call for expanding pool of climate finance contributors, no number in sight
EU climate and environment ministers are poised to call for expanding the pool of countries contributing to the new global climate finance goal, in draft conclusions preparing for the EU’s COP29 negotiating position, although the document did not to specify the amount the bloc itself should provide.
EMEA
EU countries more than three-quarters through 2024 free EUA allocations –Commission data
EU member states have handed out more than three-quarters of their 2024 quotas of free carbon allowances under the ETS, according to data released by the European Commission.
BRIEFING: How Europe is preparing to regulate CO2 transport networks to unleash CCS
Lack of CO2 transport infrastructure is still regarded as the main obstacle for large-scale deployment of carbon capture and storage (CCS) in the EU, but potential business models are beginning to emerge as the European Commission prepares to regulate the nascent infrastructure industry.
PREVIEW: Von der Leyen’s EU Commission bid seen hanging on Greens’ backing
The newly elected European Parliament is holding its first plenary session in Strasbourg next week, with a potential majority for Commission President-designate Ursula von der Leyen seemingly hanging on the future of climate policies, as she needs backing from the Greens to secure a second term.
Europe’s first 100% hydrogen-fuelled power plant launches for UK refinery
Europe’s first hydrogen-ready combined heat and power plant (CHP) has been launched in northwest England that will supply power and steam to help decarbonise a refinery and other industrial users in the region.
‘Lack of economics’ for hydrogen, CCS slowing green transition in petrochemicals, says Poland’s Orlen
Orlen, one of the largest oil refiners and retailers in Central and Eastern Europe, is looking at a range of technologies to hit net-zero emissions by 2050, including continued investments in wind power as well as clean hydrogen, small nuclear reactors, and carbon capture and storage (CCS), a company executive has said.
BRIEFING: EU energy and climate stories to watch in the weeks ahead
Reporter Emanuela Barbiroglio recaps key EU energy and climate developments from last month and the stories to watch out for in the weeks ahead, as part of a briefing produced in cooperation with Clean Energy Wire.
Euro Markets: EUAs rise a second day, post weekly loss as as countries hand out 2024 EUAs
European carbon rose for a second day but posted a week-on-week loss as the market mimicked fluctuations in natural gas amid declining trading activity, while member states reported progress in their annual handout of free EUAs, and UK Allowances posted their largest weekly loss since the start of the year.
AMERICAS
Emitters add biggest RGGI haul since February, CCA length cut across the board
Producers added to their holdings in RGGI Allowances (RGAs) in the most significant way since late February, while both emitters and financial players cut back their net length in California Carbon Allowances (CCA) ahead of a Wednesday cap-and-trade rulemaking workshop, weekly data from the US Commodity Futures Trading Commission (CFTC) released Friday showed.
Pennsylvania Senate passes CCS legislation, sending bill to governor’s desk
The Pennsylvania Senate passed on Thursday a bill establishing a regulatory framework around carbon capture and storage (CCS), which now sits on Governor Josh Shapiro’s (D) desk for possible approval.
FortisBC implements automatic RNG blend for British Columbia customers
Customers of regulated British Columbia utility FortisBC will automatically have 1% of their gas blended from renewable natural gas (RNG) sources.
ASIA PACIFIC
CN Markets: Allocation plan fails to move CEA price, but liquidity improves
The release of a draft 2023-24 allowance allocation plan for the China ETS failed to ignite the world’s largest compliance emissions market, which has seen prices remain rangebound with relatively low trading volume over the past week.
Australian Safeguard facilities awarded A$91 mln to reduce emissions
Heavy industrial facilities covered under Australia’s Safeguard Mechanism have been granted A$91 million ($61 mln) by the federal government to install new equipment to reduce carbon emissions.
Thai renewable energy firm, bank launch carbon credit-linked bonds
One of the leading renewable energy companies in Thailand has partnered with a local bank to issue fixed rate bonds linked with carbon credits in order to develop the country’s carbon market.
INTERNATIONAL
Carbon exchange confirms auction of Article 6 credits for next week following clarification of transfer technicalities
The much-delayed auction for carbon credits, eligible for international trade under Article 6, from a Malawi clean cooking project has been confirmed for next week, organisers said Friday, after a clarification letter was published specifying that the initial transfer of the corresponding adjustment will occur upon issuance of the units.
VOLUNTARY
Xpansiv partners with environmental exchange to expand voluntary market presence in Japan
Market infrastructure provider Xpansiv has teamed up with an environmental commodities exchange to provide Japanese companies with access to the global voluntary carbon market, it announced Friday.
BIODIVERSITY (FREE TO READ)
Renewable energy giant to research UK solar biodiversity impacts
The UK renewables arm of energy giant Electricite de France (EDF) has announced a project aimed at advancing research on the effects solar farms can have on biodiversity, including how they could generate benefits for nature.
Colombian organisation kickstarts water credit pilot, eyes biodiversity market
A Colombian non-profit has launched a water crediting pilot programme in a 20,000-hectare area of a river basin in its country, while preparing a separate biodiversity credit pilot.
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MARKETPLACE LAUNCH
Supercritical launches a world-first in carbon removal: a multi-pathway marketplace with live pricing and availability data for 80% of the biochar market. This launch brings radical transparency to a traditionally opaque market. Underpinned by a rigorous 118-point vetting process, the marketplace ensures quality across biochar and other removal pathways. Real-time data empowers buyers to make informed decisions and transact effectively. Trusted by 1/3 of all corporate buyers, including The Economist Group and Virgin Atlantic, Supercritical is redefining carbon removal procurement. For companies committed to climate action, Supercritical offers a single place to navigate the carbon removal market. FIND OUT MORE
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CONFERENCES
Carbon Forward Expo – October 8-10, London and Online: Our flagship conference returns to the stunning De Vere Grand Connaught Rooms in Covent Garden. As the agenda comes together for our ninth annual event, we wanted to make sure you don’t miss out on our 20% discount offer, which ends Friday, July 19. We’re also offering free passes for offset buyers. Get in touch to find out if you’re eligible and how to apply. Register now!
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Premium job listings
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BITE-SIZED UPDATES FROM AROUND THE WORLD
AMERICAS
Latching on – Sponsors of California climate disclosure bills SB 253 and SB 261 are not happy about potential delays to bill implementation and remain steadfast in efforts to prevent a delay, Politico reported Thursday. Senators Scott Wiener (D) and Henry Stern (D), sponsors of the regulation which would require large businesses to report their GHG footprints and exposure to climate risk, told Politico that Governor Gavin Newsom (D) is aligned with their goals of timely implementation, but broader “bureaucracy” defers to the priority of enacting other programmes, namely cap-and-trade and LCFS. Wiener said he would fend off a budget trailer bill released by the Department of Finance that would delay their implementation.
Because Trump loves tariffs – Supporters of a carbon tariff in the US are hopeful that the concept can survive even if former President Trump returns to office, given his propensity for tariffs. Despite current Republican resistance, discussions around carbon-based trade measures are ongoing, with figures like former US Trade Representative Robert Lighthizer getting involved. The introduction of the PROVE IT Act earlier – a study on emissions intensity – into House discussions this week is seen as a stepping stone to potentially incorporating such measures in future US trade policies. This is viewed as feasible under both a future Trump or continued Biden administration. Senators Chris Coons, Sheldon Whitehouse, and Bill Cassidy are actively working towards a bipartisan proposal for a carbon tariff, which might materialise by 2025 at the earliest. However, the bill faces significant procedural hurdles, including multiple committee referrals that could impede its progress. (Axios)
Cheque – The EU will allocate €10.5 mln to help Colombia tackle deforestation and climate change. The announcement was made during the launch of a programme aimed at curbing deforestation, strengthening the fight against environmental crimes, and promoting the conservation, restoration, and sustainable use of biodiversity. Deforestation in the Colombian Amazon has dropped last year compared to 2022, hitting the lowest rates in the region in 23 years, according to government data released earlier this month.
Negotiating – A court hearing for the government of Saskatchewan to file for an injunction to prevent the federal government from collecting its missed carbon tax payments has been cancelled, the Canadian Press reported Friday. A federal court in Vancouver said that Saskatchewan lawyers were negotiating with the federal government in Ottawa to resolve the dispute. However, if no settlement was reached, the hearing could be rescheduled for next week. In withholding payment of the federal carbon price, Saskatchewan has broken federal emissions law, from which the province may be responsible for payment or fines or potential jail time for the responsible minister.
Growing – Occidental Petroleum’s direct air capture company Carbon Engineering purchased 1.8 ha of land in Squamish for its research and development expansion, the Squamish Chief reported Friday. The company currently has about 170 employees, and said the new site will allow for an open-air fully integrated plant to test new improvements. Carbon Engineering was founded in 2009 and built its pilot plant in Squamish in 2015. It was later acquired by Oxy Low Carbon Ventures for $1.1 bln.
Brazilian green hydrogen bill – The Brazilian Chamber of Deputies approved Thursday a bill establishing a national green hydrogen framework, reported NovaCana. The lower legislative house approved a prominent amendment made in the Senate that increased the amount of CO2 allowed per kg of hydrogen produced – stemming from the energy source used – to 7 kg from 4 kg. This change should mostly benefit ethanol producers, according to the outlet. Also removed was stipulation of this number decreasing from 2030 onwards. Other amendments included getting rid of a maximum percentage of hydrogen exports from a certain company eligible to obtain tax benefits; an expanded definition of green hydrogen to include that obtained from the electrolysis of water with the use of certain energy sources such as biofuels and biomass; and a $18.3 bln total with added competitive criteria applied to previously established tax credits. The bill now goes to President Luiz Ignacio Lula da Silva for approval.
EMEA
Quashing coal – The UK government has accepted there was an error of law in the decision to grant planning permission for a new coal mine in Cumbria, northwest England, and will no longer defend the claims, reportedly telling the High Court that the decision should be quashed. Friends of the Earth (FoE) and South Lakes Action on Climate Change (SLACC) had brought a High Court claim against the Department for Housing, Communities and Local Government over its decision to grant planning permission for the site, which was set to be the first new coal mine in the UK in 30 years. The planned three-day hearing will still be held in London next week however as the site’s developer, West Cumbria Mining, is expected to oppose the legal claim. The decision follows a Supreme Court ruling last month where justices said that emissions created by burning fossil fuels should be considered when granting planning permission for sites where they are extracted.
Euros funds climate – The UEFA EURO 2024 climate fund has invested €7 mln with 190 amateur clubs and 21 regional associations across Germany benefiting from it to invest in sustainable infrastructure, helping them to improve their operations relating to energy, water, waste, and mobility. The climate fund was a central part of the UEFA EURO 2024 ESG strategy and accounts for the event’s unavoidable emissions, with every tonne of CO2 produced, €25 donated to the climate fund. Grassroots clubs in the host nation have been able to request financial support for climate-protection projects since early 2024, and across the three funding waves, 5,586 amateur clubs from all over Germany have applied for a portion of funding. Most successful applications are focused on energy efficiency or renewable energy. An estimated 60,000 tonnes of CO2 will be saved from these investments in infrastructure sustainability, equivalent to the electricity use of over 11,000 homes for one year.
State aids deluge – The EU Commission today approved a bunch of state aid schemes for greening all sorts of things. A €122 mln Lithuanian measure will support AB Achema to decarbonise its fertiliser production processes and replace fossil-based hydrogen with renewable and low-carbon hydrogen, thanks to a 171 MW alkaline electrolyser envisaged to start operating in 2026. Once completed, the project is expected to avoid the release of at least 5.8 Mt of CO2 over the 19 years of expected operation. The EU Commission also approved other schemes: a €142 mln Bulgarian scheme to support the energy sector, a €400 mln Italian scheme for investments in the decarbonisation of industrial production processes, and a €200 mln Finnish scheme for renewable fuels of non-biological origin.
Saudi CCU – Saudi Arabia’s Ministry of Economy and Planning and Ministry of Energy, in collaboration with UpLink, the open innovation platform of the World Economic Forum, launched a ‘Carbon Capture and Utilization Challenge’ during the UN High-Level Political Forum on Sustainable Development (HLPF) on July 10 (Asharq Al-Awsat). The challenge encourages startups to submit carbon reductions proposals that work through carbon capture, novel carbon utilisation applications, and industrial integration. Submissions will be evaluated on scalability, commercial viability, technological readiness, and fundraising success. Winners will receive a cash award of up to CHF 300,000 ($335,000) and form part of the UpLink Innovation Ecosystem programme, receiving technical, business, and operational support to scale their ideas.
ASIA PACIFIC
Undoing – Unwinding New Zealand’s oil and gas exploration ban would result in an extra 51 MtCO2e of GHG emissions between now and 2050, according to a ministerial report, Radio NZ reported. The Ministry of Business Innovation and Employment (MBIE) published the climate impact of allowing oil and gas exploration activities to resume, an ambition of the current coalition government. MBIE said moves to encourage oil and gas extraction between now and 2025 could add 14 MtCO2e to the country’s tally compared to keeping the ban in place. However, Energy Minister Simeon Brown said new figures showing a 20% drop in gas reserves highlighted why more oil and gas exploration was needed.
Factor adjustments – The committee steering Japan’s J-Credit scheme has updated several global warming potential (GWP) factors for GHG emissions, according to the latest version of calculation guidelines for emissions reductions and removals under the offset programme. The GWP factor for CH4 has been set at 28, compared to the previous 25, while the factor for N2O is now 265, down from the previous 298, the document showed.
Offset deal – Three companies based in China’s Hainan province recently purchased offsets worth 350,000 yuan ($48,249) generated from a tropical rainforest project in the region, according to a report by state-owned news agency CCTV. The project, covering 10,000 Chinese mu of tropical rainforest in the Diaoluo Mountain area, marks a breakthrough in the province’s exploration of development mechanisms for tropical rainforest offset projects, the report said. Meanwhile, an offset marketplace backed by the Hainan government this week started to list credits from forestry and blue carbon projects, offered at 100 yuan ($13.79) per tonne.
SAF procurement – Japan Airlines (JAL) has signed an agreement with Eneos to purchase and sell sustainable aviation fuel (SAF), it announced Friday. This agreement will enable Eneos to become the first domestic oil refiner to import SAF and supply it to JAL, which is procuring SAF both domestically and overseas. The airline has set a target of replacing 1% of its total fuel load with SAF in fiscal 2025 and 10% in fiscal 2030.
Second stretch – The Solar Energy Corporation of India (SECI) issued the tender for tranche 2 of green hydrogen incentive under the National Green Hydrogen Mission (NGHM) for 450,000 tonnes per annum of green hydrogen. SECI issued the tender, which aims to maximise the production of green hydrogen and its derivatives to enhance cost competitiveness and encourage large-scale utilisation, the Economic Times reported. The bidders can opt to bid on either or both of the options which include bucket 1 – technology agnostic pathways and bucket 2 – biomass-based pathways. Last week, SECI issued a second tender under tranche 1, for setting up 450,000 tonnes annual production facilities under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme. Under the NGHM, India has set itself a target to achieve production capacity of 5 mln tonnes per annum of green hydrogen in the country by 2030.
Spatial mapping – Sri Lanka will start spatial mapping on all tree species in the island nation, readying itself for further involvement in carbon markets, said Senior Presidential Advisor on Climate Change Ruwan Wijewardene. The government moves to speed up carbon credit trading in line with its target of net zero by 2040. It’s also in the process of drafting regulations to ensure the monetary benefits from a proposed 6,400 “Green Entrepreneurs” projects along its coastline, focusing on mangrove restoration and development, aiming to ensure that carbon credit sales reach host project communities.
VOLUNTARY
Speaking up – A former employee of the Science-Based Targets initiative (SBTi) has filed a complaint with Britain’s charity regulator accusing the non-profit of acting against its mission in announcing plans in April to allow companies to use carbon credits in their targets, arguing doing so would discourage companies from curbing their own emissions. The decision to adopt the use of offsets is still pending resolution with SBTi, following a backlash among its staff to their use. The complaint with the Charity Commission alleges that SBTi’s board trustees repeatedly breached company rules and ignored expert opinion in announcing it would seek to allow carbon offsets. While the complaint also alleges that several board trustees have ties to the carbon offset industry and highlights SBTi’s funding by the Bezos Earth fund, a charity set up by billionaire Jeff Bezos who invests in voluntary carbon. The investigation of such a complaint by the Charity Commission could end up with removing trustees to appointing interim managers or, potentially, taking away charitable status of the organisation. (Reuters)
Map of Gabon – A map of carbon for the forests of Gabon produced by CTrees researchers found there to be 4 bln tonnes of live carbon stored in the African nation’s forests in 2020, with managed forests exhibiting a 20% higher live carbon density on average than unmanaged ones. Logging concessions cover about 64% of Gabon’s area and contain 68% of the country’s total live carbon, the study, which was funded by the U.S. Forest Service, found. The study, undertaken by combining satellite and ground measurements with machine learning techniques, outperforms all global biomass datasets in resolution and accuracy, a LinkedIn post said. This suggests that carbon maps produced at the national level can be readily integrated in the country’s reporting commitments to UNFCCC, it said.
AND FINALLY…
Doctor’s orders – BC Cancer, a publicly funded health service provider in British Columbia, Canada, eliminated the use of exam paper – the sheet pulled over an examination table in a doctor’s office – and saved 32 tonnes of CO2e, CBC reported Friday. A medical oncologist with BC Cancer in Vancouver said that the paper serves no purpose when it comes to hygiene, and a year-long pilot led to yearly cost savings of nearly C$4,000 across the province, according to a study published in the BC Medical Journal.
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