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TOP STORY
FEATURE: Commission likely to be cautious about adding more REPowerEU volumes to auction schedule -analysts
The European Commission will likely be cautious about adding further EU allowance volumes to its forthcoming auctioning schedule aimed at raising money for the bloc’s REPowerEU programme to exit Russian fossil fuels, as this could lead prices to fall further, analysts told Carbon Pulse.
EMEA
New UK public company created to boost Britain’s quest for energy independence, net zero
UK Prime Minister Keir Starmer and Energy Secretary Ed Miliband announced today a new British Energy partnership that aims to leverage up to £60 billion of private investment into the UK’s quest for independence in clean energy technologies that will drive the country’s net zero transition.
26 EU countries reprimanded for delay in ETS2 implementation
All EU countries – except Austria – have failed to meet a June 30 deadline to implement the provisions of the EU’s Emissions Trading System related to the pricing of CO2 from road transport and heating fuels, known as ETS2.
BRIEFING: UK authority outlines plan for extending ETS to waste incineration
The UK ETS Authority has outlined the emissions monitoring methods available when extending the country’s carbon trading scheme to include emissions from waste incineration, and how the cost pass through could be apportioned, following a consultation process.
Steel demand remains sluggish in Europe as recovery fails to pick up
Swedish steelmaker SSAB highlighted weak demand in Q2 and predicted pronounced low demand in Q3 in results published this week, amid a persistent worsening outlook for the European steel sector as a whole.
Falling coal costs for power raise prospect of more EUA demand this winter –analyst
A decline in short-term coal prices in Europe may set the stage for an increase in consumption of the fuel in the coming winter, as operating costs for coal-fired power plants approach parity with those for gas-fired generation, according to analysts.
Euro Markets: EUAs consolidate, then give way to post as sellers return and overcome technical support
European carbon prices gave up much of Wednesday’s gain on Thursday after a consolidation in the morning turned into a decline in the afternoon as sellers returned to the market in some size, while energy markets also fell on technical selling after sharp rises on Wednesday.
AMERICAS
Interest in CCS piqued by EPA power plant rule, but legal questions stymie development -panellists
US Environmental Protection Agency (EPA) standards finalised this spring that envision a prominent role for carbon capture and storage (CCS) in reducing power plant emissions have piqued interest in the emerging technology, but hesitancy remains around legal challenges, a conference heard Thursday.
US federal CCS support unlikely to be deterred by potential Trump presidency, experts say
Tax credits and other incentives towards carbon capture and storage (CCS) in the US are likely to continue under a potential second Trump administration, experts told conference attendees, also providing recommendations for project developers in a post-election landscape.
Washington state reports funding cuts if cap-and-trade scrapped, think-tank claims shortcomings in govt analysis
The Washington State Office of Financial Management (OFM) has published its assessment of scrapping the state’s cap-and-trade programme should ballot initiative 2117 (I-2117) succeed, but failed to discuss several negative impacts it might have on the economy, according to a think-tank.
WCI Markets: CCAs contained below WCAs all week
California Carbon Allowance (CCA) prices stabilised on lower volumes this week in the absence of a market catalyst, holding below Washington Carbon Allowances (WCA) that registered a slight uptick in activity in an otherwise subdued market.
Mexican ETS framework one step away from publication as private sector interest grows
The regulatory framework for Mexico’s long-delayed emissions trading system (ETS) is in the final stages of review, and the private sector is increasingly interested in offsetting strategies, according to a Mexican industry representative speaking on a webinar Thursday.
ASIA PACIFIC
Petronas acquires land for CCS hub in Malaysian state of Pahang
National oil major Petronas has inked a land rental agreement with the Kuantan Port Consortium for the development of a carbon capture and storage (CCS) hub in the state of Pahang in Malaysia, the company said in a release.
Indonesia expands ETS as smaller coal-fired plants to be added
Indonesia is about to increase the scope of its nascent emissions trading scheme, as the coverage threshold for participating coal-fired power plants will be lowered to 25 MW of capacity, the government announced this week.
Carbon pricing can lower green premium in Asia steel sector, report says
An effective carbon price can potentially make a greener, hydrogen-based steelmaking process a cost-effective alternative for steelmakers in China and some other Asian countries, a group of researchers have found.
Malaysia’s Sabah to launch mangrove action plan
The state government of Sabah in Malaysia will soon launch a Sabah Mangrove Action Plan for the conservation of its mangrove forests, its chief minister has announced.
INTERNATIONAL
Developed countries should contribute trillions to support climate finance, BASIC bloc says
The BASIC group of Brazil, South Africa, India, and China have repeated demands that rich countries ramp up their climate finance contributions, urging them to commit trillions of dollars to assist developing countries in reducing their greenhouse gas emissions.
VOLUNTARY
Egyptian voluntary carbon market opens for trading, awaits first deals -media
Egypt’s long-awaited voluntary market (VCM) is ready to start trading, and the Egyptian Stock Exchange (EGX) is currently awaiting the execution of its very first deals, according to local media reports.
INTERVIEW: SBTN tweaks protocol to make methodologies feasible
The Science Based Targets Network (SBTN) this month released updated technical guidance and a corporate manual to help companies tackle their nature impacts, at a time of intensifying debate over perceived trade-offs between rigour and feasibility in target-setting.
Xpansiv’s ICVCM CCP contracts trade 37,606 tonnes on debut
Xpansiv launched trading of standardised Global Emissions Offset (GEO) contracts on its CBL spot exchange on Monday with 37,606 tonnes trading via the contracts, which are aligned with the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCP).
FEATURE: CO2-derived plastics trump bio-based plastics on GHG footprint, resource usage
CO2-derived plastics could reduce the greenhouse gas footprint of plastics under a clean energy grid scenario and reduce pressure on biomass resources, which will become increasingly in-demand as the world pivots towards a more circular economy, say plastic experts.
High operational costs limiting Thailand’s voluntary carbon market -report
High operational costs, including that of of assessment and certification of carbon credits, has hindered the growth of Thailand’s domestic carbon market, a report released this week has found.
Iceland-based carbon registry launches public consultation for programme updates
An Iceland-based carbon registry has launched a public consultation on its greenhouse gas programme.
Malaysia’s first nature-based carbon credits go under the hammer
Bursa Carbon Exchange (BCX) has carried out the auction of Malaysia’s first nature-based carbon credits from the Kuamut Project in Sabah, the exchange announced Thursday.
Futures exchange suspends December 2024 CORSIA futures contract
One of the major futures exchanges in carbon markets has suspended its benchmark contract in CORSIA-eligible carbon credits, straining the credibility of delivery on trades that had been made on the platform.
Verra’s board of directors appoints one of its members as new CEO
Voluntary carbon certifier Verra announced the appointment of a new CEO from its board of directors on Thursday, after more than a year since its founding CEO stepped down.
AVIATION
Air France-KLM cites high EU ETS costs as profits slide 30%
Airline group Air France-KLM reported worse-than-expected results on Thursday, with ETS costs cited among reasons for the news.
Denmark ‘very concerned’ about draft EU aviation climate reporting rules
Denmark has written to the European Commission to express concerns about draft EU aviation emissions reporting rules, saying the text fails to properly take non-CO2 emissions into account, as requested under the EU ETS.
BIODIVERSITY (FREE TO READ)
Singapore-based investor announces biodiversity accelerator cohort
A Singapore-based investment firm has announced a cohort of eight companies that will take part in an initiative aimed at scaling nature-positive businesses.
Food giants come out in defence of EU’s anti-deforestation law
Chocolate makers Nestle, Mars Wrigley, and Ferrero have written to the European Commission to defend the EU’s anti-deforestation regulation amid calls to delay and revise the legislation to reduce bureaucracy for small farmers.
Biodiversity credit firms partner to scale nature markets
Two of the participants in the emerging biodiversity credit market are partnering to align their work with the aim of scaling nature markets in Africa, Europe, and the Americas, Carbon Pulse has learned.
Plan Vivo moves to plug risk of unintended leakage from biodiversity crediting projects
Nature and carbon standard-setter Plan Vivo Foundation is developing an initiative for measuring the unintended consequences of conservation activities involved in emerging biodiversity markets.
Australian startup releases guidance on biodiversity metrics to enhance corporate disclosures
An Australian-based biodiversity intelligence startup has developed a model incorporating global and local metrics to assess ecosystem and species health, seeking to enhance data comparability and steer companies in nature-related disclosures.
Biodiversity Pulse: Thursday July 25, 2024
A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).
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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 want 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
- *Freelancer (m/f/d) Carbon Project Development, Volkswagen ClimatePartner GmbH – Mexico
- Director Carbon Procurement, KliK Foundation – Zurich
- Head of Carbon Project Development (m/f/d) – Volkswagen ClimatePartner GmbH – Munich
- Environmental Markets Correspondent, Carbon Pulse – US/Canada (Remote)
*New listing
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
‘Turbo-charge’ appeal – UN Secretary General Antonio Guterres has called on all countries to “turbo charge” cuts to fossil fuels in light of record extreme heat hitting the planet in recent months. This comes right after July 21 and 22 were announced by scientists as the world’s hottest days on record. A new UN paper backed by the UNSG warns that billions of people around the world are wilting under increasingly severe heatwaves driven largely by a fossil-fuel charged, human-induced climate crisis.
COP convening – The COP29 Presidency is convening a Heads of Delegation level retreat in Azerbaijan today and tomorrow, ahead of the UN Climate Summit in November, to which representatives from all negotiating groups have been invited. The meeting will focus on the New Collective Quantified Goal on Climate Finance (NCQG), hoped to be achieved in November, and ensure progress on other areas too including Article 6, mitigation, adaptation, and loss and damage. The retreat aims to find common ground and build momentum, with climate finance as a centrepiece, and comes after the COP29 Presidency issued its first Letter to Parties where it set out its expectations for all stakeholders.
EMEA
Bank’s recap – Projects financed by the European Investment Bank (EIB) will mitigate the emission of 5.2 mln tonnes of carbon equivalent, according to its 2023 Sustainability Report. The EIB committed a record €2.7 bln in new financing for climate adaptation projects in 2023, more than doubling the 2021 figures. For the first time, the EIB provided figures about the emissions generated by its own portfolio: it assessed the emissions generated from investments worth €380 bln. Yet, the bank said all its operations are aligned with the Paris Agreement since 2019, when it officially stopped financing unabated fossil fuel energy.
French aid for biomethane – The European Commission has cleared today a €1.5 bln French scheme to support the production of biomethane for injection into the gas grid. The measure will be open to new installations with a projected annual production of biomethane of more than 25 GWh per year. The aid will be granted in the form of two-way contracts for difference (‘CfD’), concluded for a duration of 15 years. Beneficiaries will be selected via a competitive bidding process, on the basis of a strike price per MWh of biomethane offered. “This measure is an important step in the transition to a net-zero economy,” and will help reduce reliance on imported fossil fuels, said Margrethe Vestager, EU Commission vice-president in charge of competition policy, who gave the green light to the French scheme.
Dutch decarbonisation aid – The European Commission has approved a €750 mln Dutch scheme to support investments in the decarbonisation of industrial production processes to foster the transition towards a net-zero economy. The scheme will incentivise companies in the Netherlands to reduce GHG emissions from industrial production processes by at least 40% compared to today. The aid will take the form of direct grants that will be awarded following one or more calls for proposals. The measure will be open to companies operating an industrial installation in the Netherlands, for investments enabling the substitution of fossil fuels through the electrification of industrial processes.
Accelerated renewables – The German government drafted a law to speed up the expansion of onshore wind, solar farms, and energy storage facilities by shortening approval times for projects and designing so-called “acceleration areas”. The latter would be government-selected areas where renewable energy projects would be approved in a simplified and accelerated procedure under new provisions as part of the Wind Energy Area Requirements Act. The draft law is the government’s implementation of the EU Renewable Energy Directive (RED III), which is based on the EU goal of increasing the share of renewable energy in gross final energy consumption to 42.5% by 2030. The cabinet also decided to simplify and accelerate the approval process for electrolysers for hydrogen production, with production of hydrogen by electrolysis only subject to an approval procedure if the capacity is 50 tonnes a day or more under the amendment. (Clean Energy Wire)
ASIA PACIFIC
Low-carbon targets for aluminium – Chinese regulators have released an action plan for the country’s aluminium sector to further promote energy saving and carbon reduction activities, according to a notice by state planner National Development and Reform Commission (NDRC). The plan aims to save around 2.5 mln tonnes of standard coal and reduce CO2 emissions by about 6.5 mln tonnes over the two years (2024-25). By 2025, China’s aluminium industry should also ensure that 25% of sectoral energy consumption comes from renewable sources, with the production of secondary aluminium reaching 11.5 mln tonnes. The targets follow a broader plan published earlier this year, which aims to cut CO2 emissions from energy consumption over the next year by 130 mln tonnes.
Forest research – The government of Malaysia’s Sarawak has signed a Memorandum of Understanding (MoU) with Japan’s Kyushu University to facilitate bilateral collaboration on research activities including the assessment of forest ecosystem functions under Forest Carbon Initiatives in Sarawak, a release showed. The two parties said they will enhance knowledge and skills sharing through capacity building, training for officers, student exchange programmes, and joint data analysis.
Blue carbon partnerships – Urchinomics, a restorative aquaculture venture, has formed separate partnerships with Japanese shipping firm NYK Line and restaurant chain operator Food & Life Companies (F&LC), it announced Thursday. NYK plans to help accelerate restoration efforts and develop new blue carbon evaluation methods and credits, while the alliance with F&LC will focus on the creation of a stable supply of domestically farmed sea urchins. “Both partnerships will further our mission to restore kelp forests, revitalise coastal communities and fisheries, and combat climate change,” Urchinomics said in a LinkedIn post.
New project – Japanese project developer Bywill has teamed up with the Tottori Chubu Forestry Association to generate and sell J-Credits through forest management activities in Tottori prefecture. Under the agreement, the amount of CO2 absorption over the eight-year project is expected to be around 13,000 t-CO2, a statement showed.
Low carbon zinc – India’s largest zinc producer, Hindustan Zinc has launched Asia’s first low-carbon zinc brand, EcoZen to meet the growing demand for sustainable and environmental friendly materials, particularly in the automotive sector, Business Standard reported. EcoZen is manufactured using renewable energy, and has a 75% lower carbon footprint than the global average. It also claims to have less than 1 tonne of CO2e emissions produced for every tonne of zinc made, the newspaper added. Moreover, the use of EcoZen in galvanising 1 tonne of steel is expected to avoid around 400 kgs of carbon emissions. By using the brand, carmakers can contribute to a reduction in overall carbon emissions throughout the vehicle’s life cycle.
AMERICAS
Bringing gas back – Vancouver city council reversed a long-standing bylaw that prohibited the use of fossil gas for heating in newly built homes, CBC reported Thursday. Supporters have said that it will spur more home construction in the city and pointed to “failing” electrification policy, but critics say it fails the city’s climate goals and undoes the city’s progress. The City of Vancouver estimates that burning gas in buildings accounts for 55% of the carbon pollution generated in the city. Environmental non-profit Stand.earth told CBC that the action was a direct result of gas industry lobbying, as talking points resembled those of gas utility FortisBC, which recently implemented an automatic renewable natural gas blend for British Columbia customers.
Hobnobbing H2 – The US Department of Energy’s (DOE) Office of Clean Energy Demonstrations (OCED) awarded $27.5 mln in Phase I of $1 bln in funding on Wednesday to the Pacific Northwest Hydrogen Association (PNWH2) used to begin building a clean hydrogen ecosystem across Washington, Oregon, and Montana. During Phase 1, which is expected to last 12-18 mo, PNWH2 will conduct foundational activities including planning, analysis, design, and community and labour engagement. The hub aims to reduce 1.7 Mt/yr of carbon emissions with links to the California Hydrogen Hub that received $30 mln in funding from the OCED last week.
EJ purse-uits – The US Environmental Protection Agency (EPA) released $325 mln in a first tranche of $2.1 bln in available funding on Thursday for 21 applicants selected from its Community Change Grants Program’s rolling application process. Funds will be directed to environmental projects in disadvantaged communities with applications accepted till Nov. 21, 2024. Some of the initial award recipients include: Midwest Tribal Energy Resources Association – $20 mln to install home weatherisation and energy efficient upgrades across 35 Tribes in Michigan, Minnesota, and Wisconsin; Coalition for Responsible Community Development – $20 mln for workforce development training for lead abatement, welding, hybrid and EV maintenance, home weatherisation, and residential energy audits in Southern Los Angeles; Texas A&M University – $14 mln to install onsite wastewater treatment systems through 17 Black Belt counties in Alabama; and Pittsburgh Conservation Corps – $14 mln to expand workforce around urban forestry, wood reduction, biochar use in soils in Philadelphia and Pittsburgh.
Advancing forest initiatives – The US Department of Agriculture’s (USDA) on Thursday announced a $190 mln grant opportunity which would help private forest landowners adapt to and mitigate climate change impacts and retain working forestlands. Some $140 mln of the total would support cost-share programmes for landowners’ efforts to increase resilience to changing climate conditions and increase carbon sequestration. The remainder $50 mln would be allocated to programmes that issue direct payments to landowners to adopt CO2 sequestration and storage practices.
State sues Exxon – A lawsuit filed by the state of Connecticut against Exxon is one step closer to trial in state court, E&E News reported Thursday. The lawsuit looks to hold Exxon accountable for its “systematic campaign of deception” regarding its contributions to climate change. A recent bid by Exxon to dismiss the state’s case was dismissed by Superior Court Judge John Farley on Tuesday. Similar cases are taking place across the country in Puerto Rico, Vermont and Rhode Island, inclusive of multiple levels of government.
Support for Colombian agriculture – Climate tech firm Boomitra and Colombian food processor Alqueria on Thursday announced an agreement to promote regenerative agriculture and carbon finance to support ranchland across Colombia. The project aims to adopt sustainable agricultural practices across 130,000 acres (52,600 ha) and introduce regenerative techniques for over 1,000 dairy farmers involved in the initiative. Boomitra’s technology will measure carbon sequestrated in the soil following project implementation, and Colombian dairy farmers who join the initiative will receive a majority of the revenue generated from the carbon credits sale. The collaboration will span 40 years, and is said to be revalidated every 10 years.
VOLUNTARY
New hire – Project developer C-Quest Capital has hired Donee Alexander as its chief carbon officer. Alexander joins from the UN’s Clean Cooking Alliance (CCA), where she was the chief science and learning officer. Alexander was also a founding member of the Clean Cooking and Climate Consortium (4C). In the new role, Alexander will serve as a member of C-Quest’s executive committee and will oversee the firm’s carbon asset management, including research, policy, methodology, carbon accounting, and quality control, a press statement by the developer said. Alexander has previously served on the National Institute of Environmental Health Services’ Implementation Science Network Steering Committee and as an expert consultant to the World Health Organization’s Household Energy Programme. C-Quest has been mired with allegations of fraud conducted by its founder and former CEO Ken Newcombe, which he has denied. The company said that Newcombe’s suspected actions led to inaccurate credit issuance related to its clean cookstove projects, of which 27 have been suspended by Verra.
INVESTMENT
CDR funding – Private equity house NGP has committed $500 mln to a new fund called NGP Sustainable Real Assets (NGP SRA), specifically focused on investing in real assets for the energy transition, including carbon removals. The fund aims to support various projects, where each investment ranges from $50-150 mln. Completed investments so far include in CO280 Solutions, which collaborates with pulp and paper companies to create, fund, own, and run projects that remove CO2 and offer verified, cost-effective carbon removal credits.
AND FINALLY…
Bumpy – Invisible, unpredictable air turbulence is expected to occur more frequently in the Northern Hemisphere as the climate warms, science news site Phys.org reported Thursday. The type of turbulence, known as clear air turbulence, has already increased in the Northern Hemisphere between 1980 and 2021, according to the study led by researchers at the Universite de Toulouse, published in the Journal of Geophysical Research: Atmospheres. Planes in the Northern Hemisphere currently encounter clear air turbulence about 1% of the time, but the study’s results suggest clear air turbulence will increase most over North Africa, East Asia, and the Middle East, with the probability of the turbulence increasing with each degree of warming. Notably, this type of turbulence is expensive and difficult to forecast.
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