Newsletters > CP Daily: Monday July 29, 2024

CP Daily: Monday July 29, 2024

Published 02:58 on July 30, 2024  /  Last updated at 02:58 on July 30, 2024  / Carbon Pulse /  Newsletters

A daily summary of our news plus bite-sized updates from around the world.

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TOP STORY

Air NZ drops 2030 emissions target, pulls out of SBTi

Air New Zealand on Tuesday dropped its 2030 carbon emissions intensity target and announced it is withdrawing from the Science Based Target initiative (SBTi), citing uncertain regulatory support and lack of sustainable aviation fuel (SAF) supply.

EMEA

RWE posts 19% drop in EU ETS-covered fossil power output in H1

RWE reported a drop of almost one-fifth year-on-year in power generation covered by the EU ETS during the first six months of 2024, according to preliminary results published Monday.

Zimbabwe plans for carbon market under new climate change bill

The Zimbabwean government is moving forward with plans to establish carbon trading mechanisms in its second-largest city, as part of the nation’s new Climate Change Management Bill.

EU approves Dutch state aid for green hydrogen programmes worth over €1 bln

The European Commission has approved two Dutch state aid schemes supporting the production of renewable hydrogen, for more than €1 billion in total, it announced on Monday.

EU fossil generation falls to record low as renewables meets growing demand -data

EU fossil power generation fell to an all-time low in the first half of the year as the bloc’s electricity system continues its rapid shift towards renewables, according to new data released on Tuesday.

Real-world CO2 emissions from cars 20% higher on average than official tests, data shows

The European Environment Agency (EEA) has published new data revealing significant discrepancies between real-world CO2 emissions and official test values for cars and vans.

Azerbaijan fails to report growing methane emissions from oil and gas flaring, NGO finds

Methane emissions in COP29 host country Azerbaijan have surged in recent years, following a period of no data reported by the country, according to an investigation by the NGO Global Witness published on Monday.

First trade of new Egyptian voluntary carbon market likely this week -media

Egypt’s new voluntary carbon market (VCM) trading platform will likely see its first carbon credit trade occur this week, between an agricultural collective seller and a food processing company buyer, according to local media.

Euro Markets: EUAs head back towards upper end of recent trading range as buyers target technical levels

European carbon moved back near the top of last week’s €64-€69 trading range, coming within 30 cents of a key technical level as the recent robust selling interest was absent from the market on Monday, while natural gas rose amid growing evidence of further tropical storms that could impact US LNG exports.

AMERICAS

RGGI Market: RGAs skyrocket to new records amidst ongoing power demand, programme review silence

RGGI allowances (RGA) skyrocketed to historic highs over the last week, as market participants attributed the rally to ongoing compliance demand and uncertainty around the programme review, noting the market is overvalued, whilst a non-profit suggested earlier and more ambitious budget allowance cuts.

Wildfires burning at least 13,000 acres of offset project under California regulator ARB, research group estimates

A research group estimates 13,000 acres (5,300 ha) of a California regulator ARB-approved offset project have burned in Washington state as of Friday, potentially marking the project’s fourth unintentional reversal in its lifetime, as at least four other compliance offset projects burn in California Monday.

California Senate will pursue cap-and-trade reauthorisation next year

The California Senate, led by the Senate president, will pursue programme reauthorisation of the state’s cap-and-trade next year, Carbon Pulse has learned.

BRIEFING: Incumbent claims Venezuelan election victory, dealing blow to green transition

Venezuelan President Nicolas Maduro, who rose to power after Hugo Chavez’s death in 2013, has declared victory in a disputed election where polling had predicted a landslide loss, shuttering the opposition’s plans for green transformation as an engine of economic resilience.

LATAM Roundup: Public, private sectors seek collaboration on carbon pricing

Carbon Pulse rounds up developments in Latin American and Caribbean carbon markets for the week ending July 28, which saw convergences between public policy on one hand, and private sector initiatives on the other, as a broadening array of LATAM countries and companies throw their weight behind carbon pricing.

ASIA PACIFIC

Indonesian coal mine emissions vastly underreported, report says

Indonesian coal mine emissions are being underreported, with fewer than half of its major miners reporting the methane emissions that occur as part of the mining process, according to a report released Monday.

Relaunched CCER scheme gets boost by Guangdong mangrove plans

A Chinese company has acquired carbon sink development rights for a mangrove project in Guangdong province, which would potentially make it the first in the country to obtain nationally issued carbon credits from mangrove restoration activities.

ACCU, NZU futures trade subdued on bourse debut

The first day of trade for Australian and New Zealand futures contracts on the ASX closed quietly with 1,000 units traded, but prices not given.

Broker-backed Perth firm teams with Traditional Owners for carbon-biodiversity credit play of “national significance”

A Perth-headquartered company has partnered with a Traditional Owners group in Western Australia’s Goldfields region for a project over a huge tract of land it says will generate premium-priced carbon credits with major biodiversity benefits.

South Korea launches first e-mobility project in Cambodia to generate ITMOs

South Korea has launched the first greenhouse gas reduction project through e-mobility in Cambodia, which will create internationally transferred mitigation outcomes (ITMOs) under Article 6 of the Paris Agreement.

VOLUNTARY

VCM Report: New standardised CCP contracts launch as flurry of CBL carbon trade lights up dull summer market

Last week’s arrival of standardised contracts based on the Core Carbon Principles (CCPs) high integrity label could spark life into a voluntary carbon market that is generally wallowing in a summer slumber, despite a splurge of activity on the CBL marketplace.

Verra launches forestry voluntary carbon market quality label

Verra has formally launched its voluntary carbon market quality label for forestry projects, it said Monday.

Pump more oil to decrease emissions, report says

Carbon capture and storage (CCS) when used to increase oil production in the form of enhanced oil recovery (EOR) can contribute to deeper emissions reductions than regular CCS projects, according to an energy consultancy.

Voluntary carbon market participation skewed toward wealthy nations, NGO study finds

There is a disparity in the voluntary carbon market (VCM), with the majority of companies implementing and managing carbon projects in wealthier developed nations, according to research published on Monday.

Clarity on quality needed to accelerate growth in the CDR industry -panel

Although buyer expectations surrounding higher quality carbon removal (CDR) credits have picked up in recent months, the lack of clarity on standards continues to hinder market participation, panellists at a webinar said Monday.

AVIATION

British airline introduces green surcharge to cover for SAF costs

A British airline will soon charge passengers a fee to help cover sustainable aviation fuel (SAF) expenses.

BIODIVERSITY (FREE TO READ)

Australia issues tender to develop first methodologies under Nature Repair Market

The Australian government has issued a call for partners to help develop a pipeline of methods to make projects eligible for earning credits under the Nature Repair Market (NRM), with A$3 million ($2 mln) available in funding during FY2024-25.

Mineral extraction puts over 4,600 animal species at risk, study says

Over 4,600 animal species are threatened by mineral extraction worldwide, with increasing demand for raw materials needed for clean energy technologies among the drivers of biodiversity loss, according to a new scientific paper released on Monday.

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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 10% discount offer, which is available throughout August. 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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BITE-SIZED UPDATES FROM AROUND THE WORLD

EMEA

Flexible electricity use – Britain’s energy watchdog Ofgem has announced moves to help drive flexible electricity use as the UK increasingly switches to intermittent wind and solar power. Elexon has been hired to act as market facilitator for local energy flexibility – where it will co-ordinate demand flexibility offers – following a consultation launched last year, and on Monday, Ofgem launched a consultation on a new system to provide a single point of registration for flexible consumer assets, such as EV chargers, heat pumps, and home battery storage systems. These assets will be able to participate in local and national energy markets, helping to balance energy supply with energy demand. The steps are expected to help achieve the UK government’s goal of 100% clean power by 2030, and could also contribute to between around £30 bln and £70 bln in savings from energy flexibility by 2050. (the Independent)

Be prepared – European banks are increasingly setting aside money to absorb potential losses from climate change, Bloomberg reports. More than half (55%) of lenders now take climate and environmental risks into account when building their so-called provisioning overlays, the European Central Bank said Monday. The ECB had previously recommended European banks to do so, though some lenders have pushed back, warning that extra environmental and climate buffers put them at a disadvantage to competitors in the US, where such demand don’t exist.

The Trump Effect – European companies focused on clean energy are abandoning expansion plans, bracing for lower sales or see funding of US project in doubt because of fears over what a potential election victory for Donald Trump could mean for their sector. Trump is expected to try to undo much of Biden’s administration’s work, including the Inflation Reduction Act (IRA), which offers tax breaks and subsidies to US and foreign companies investing in sustainable energy. Wood Mackenzie energy data and analytics company reckons it would put a projected $1 trillion in low-carbon energy investments at risk by 2050. (Reuters)

CDR integration – With the UK government consulting on the mechanics of introducing carbon dioxide removal (CDR) into the UK ETS, analysts at the Grantham Institute explore how the system can best accommodate the expected influx of CDR. They conclude that in the long term, as the cap declines, switching from a gross cap to a new net cap may prove to be a more efficient option, especially as this would lead to net-negative emissions over the longer term. By adopting a new net cap, the system can accommodate the expected influx of CDR while achieving the desired level of gross/net reductions and maintaining revenues, they argue.

ASIA PACIFIC

Seychelles’ seagrass – Researchers have found that seagrass ecosystems within Seychelles’ Exclusive Economic Zone (EEZ) are storing CO2 at a rate of 510,000 tonnes of CO2e per year, which is nearly the same as the annual emissions from the local energy sector and almost three times the emissions from the transport sector. The research team mapped 1,599 square kilometres of seagrass across the EEZ of 1.4 million square kilometres using satellite imagery and ground surveys, an area equivalent to 29,000 football fields. They identified the vast area as a significant resource capable of storing 18.9 Mt of organic carbon, amounting to 69 MtCO2e. The project was initiated in 2020 and aligns with the Seychelles government’s commitment to safeguard 50% of its blue carbon ecosystems, including mangroves and seagrass meadows, by 2025 and achieve 100% protection by 2030.

Ambitious biorefinery – Malaysia’s Petronas, French Enilive, and Japanese Euglena have reached the final investment decision (FID) to develop a biorefinery, which will be located within Petronas’ Pengerang Integrated Complex (PIC) in Johor, Malaysia. The entities will establish a joint venture company in the Southeast Asian country to construct and operate the biorefinery. The refinery – expected to become operational by the second half of 2028 – will have the capacity to process about 650,000 tonnes per year of raw materials to produce sustainable aviation fuel (SAF), Hydrogenated Vegetable Oil (HVO), and bio-naphtha to cater to the growing demands of the global aviation and transportation industries. The project is expected to contribute towards Malaysia’s National Energy Transition Roadmap (NETR), Petronas said.

Further expansion – Japanese project developer Green Carbon has signed a memorandum of understanding (MoU) with INTAD, a subsidiary of Vietnamese food trading firm TH Group, to promote the procurement of environmentally friendly rice in the Southeast Asian country, it said in a statement. INTAD will purchase rice produced based on the alternate wetting and drying (AWD) method, and the carbon credit revenues will help improve the profits of Vietnamese farmers. Green Carbon has been promoting rice paddy projects in several Vietnamese provinces, such as Nam Dinh and Nghe An, the statement showed.

Mangrove decline – Australia’s Great Barrier Reef is losing its mangroves at a rapid rate along the Queensland coast for thousands of kilometres from Cairns to Gladstone, according to a report from James Cook University. It found “severe” damage in some 80% of the mangroves, and 52 spots that hold potential for restoration that span 17,255 hectares or (42,563 acres). The university used 80,000 high resolution photos taken via helicopter survey to compile the Great Barrier Reef Mangrove and Saltmarsh Condition Survey.

AMERICAS

Investigating Exxon – Amid a significant marketing campaign touting the benefits of CCS, Exxon’s projections of the sector in 2018 were modest and also initially dealt with internal scepticism regarding CCS feasibility, Vox and Drilled reported Monday, featuring documents from the House and Senate Democrats’ investigation into the fossil fuel industry’s role in climate disinformation. In 2018, the oil major predicted 250-500 CCS facilities worldwide by 2050 with “limited global scale” for CCS. Exxon staff told Vox that the firm was sceptical of a US Geological Survey assessment that year, which showed potential for CCS, and assembled its own team of technical experts to study the feasibility of permanent storage of CO2. The experts concluded it was possible, to the surprise of Exxon executives. At the end of the last decade, executives came up with a list of the company’s export and import terminals and refineries where it may be easy to set up CCS – as of today, no projects have been built.

RFA request – The Renewable Fuels Alliance (RFA) submitted comments last week to the US Department of Agriculture (USDA) suggesting the agency implement the use of a “book and claim” accounting framework for tracking and transferring GHG benefits of climate-smart agricultural (CSA) practices through the biofuels supply chain. The comment came in response to a USDA request for information intended to support the US Treasury’s upcoming proposed rule for implementation of the Inflation Reduction Act’s clean fuel production credit, or 45Z credit. According to the RFA, the benefits of such an approach include allowing farmers who are not close to biofuel facilities to benefit from adopting CSA practices, facilitating the efficient operation of the grain market, and allowing farmers and producers of ethanol, SAF, and other biofuels to better manage market and weather risk.

CA fire – The Park Fire in California has burned more than 350,000 acres (141,600 ha) about 90 miles (144 km) north of state capital Sacramento as of Saturday, as the blaze more than doubled in size in a 24-hour span – making it the largest in the US, Reuters reported. The fire is estimated to impact at least four offset projects eligible for compliance under California’s cap-and-trade programme.

VOLUNTARY

(Re)associated – Project developer Allcot has rejoined the Colombian Association of Carbon Market Actors (Asocarbono), it announced last week. Allcot noted that it had previously distanced itself from the association due to “differences in vision”, but said it is now rejoining due to the latter’s renewed focus on “generating changes and initiating ambitious plans for the country, the market, and the communities,” according to a press release. The two will work together to advance carbon projects that “[are] transparent, have strong governance, [and] generate co-benefits for communities, making it easier for countries to reach their NDCs with high but realistic targets.”

AND FINALLY…

Pulsating carbon – NASA has unveiled a global map which shows how concentrations of CO2 moved through Earth’s atmosphere from January through March 2020, driven by wind patterns and atmospheric circulation. The map can be zoomed in to see CO2 emissions rising from power plants, fires, and cities, then spreading across continents and oceans. The majority of emissions over China, the US, and South Asia, were found to have come from power plants, industrial facilities, and transportation. Meanwhile, in Africa and South America, emissions largely stemmed from fires, especially those related to land management, controlled agricultural burns and deforestation, along with the burning of oil and coal. Moreover, pulsing in the map occurred due to two primary reasons. One was found to be fires, which typically flared up during the day and died down at night. And the second was photosynthesis. The map was created by NASA’s Scientific Visualization Studio using a model called Goddard Earth Observing System (GEOS).

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