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TOP STORIES
BRIEFING: NZ market participants welcome slash in auction volumes, but fundamental questions remain
The coalition government’s decision to follow the Climate Change Commission’s advice on emissions trading scheme price settings and auction volumes has been broadly welcomed, participants told a conference Tuesday, but key issues relating to the scheme have yet to be resolved.
EMEA
Around half of Germans opposed to current carbon pricing approach
Nearly half of the German population disapprove of the current domestic approach to CO2 taxation in transportation and heating, according to a new survey.
Brussels-approved state aid for German LNG terminal falls foul of EU climate policy, claims non-profit
Brussels is under pressure to defend its climate policy after approving state aid of €40 million to build Germany’s multi-purpose LNG import terminal in Brunsbuttel.
Zambia progresses towards issuing authorisation for int’l credit trade from 10 carbon projects
Zambia has moved closer to issuing letters of authorisation (LoAs) and approval for 10 carbon projects, its government has said, which would enable developers to sell credits internationally in accordance with the Paris Agreement.
Sweden, Zambia sign Article 6 MoU
Sweden and Zambia have signed a memorandum of understanding (MoU) for bilateral climate cooperation under Article 6.2 of the Paris Agreement, according to a statement by the Swedish Energy Agency (SEA) on Tuesday.
Euro Markets: EUAs snap four-day winning streak after reaching new 12-day high as sellers return
European carbon prices snapped a four-day rally after rising to their highest in 12 weeks in the morning amid an increase in buying interest with coal-fired power continuing to make inroads into gas’ share of the EU generation mix, before dropping back to record a loss as the failure to breach a key psychological level encouraged sellers to re-enter the market later in the day.
AMERICAS
RGGI compliance entities expand allowance holdings in Q2, secondary market activity jumps -report
RGGI compliance entities expanded their allowance holdings during the April-June period even as their surplus shrank, while futures and options trading also grew substantially as credit prices rose to new records, according to a report published Tuesday.
Researchers urge US industrial carbon utilisation to reach net zero goals
CO2 utilisation can produce goods such as aviation fuels, pharmaceuticals, and concrete, but US federal agencies must develop systems that drive commercialisation and market demand, according to a report mandated by Congress and the Department of Energy (DOE).
US carves out nearly $300 mln from IRA for SAF
The US Federal Aviation Administration (FAA) has announced $291 million in grants from Inflation Reduction Act (IRA) funds to projects that facilitate development and implementation of sustainable aviation fuels (SAF).
Guyana increases voluntary carbon credit share of proceeds for Indigenous communities -media
Guyana President Irfaan Ali announced this week at a national assembly on Indigenous affairs that the government would increase the percentage of voluntary carbon credit proceeds for Amerindian communities, counterbalancing lower earnings in 2024, according to local sources.
ASIA PACIFIC
Updated NDCs could see Australia’s big emitters reach net zero early, says consultancy
Australia’s heavy emitters could reach net zero before 2050, a date adopted by the country as well as many large companies, should baseline emissions reductions covered under the Safeguard Mechanism bump up.
Support CCS like hydrogen to develop sector, commerce chamber tells Australian govt
The chamber of commerce in Australia’s largest gas-exporting state has argued the current Labor federal government is not doing enough to support carbon capture and storage (CCS) and should provide the same support it gives to green hydrogen development if the country is serious about meeting its climate goals.
Malaysia weighs carbon tax on big-emitting industries
The Malaysian government is looking into implementing a carbon tax, particularly on big-emitting industries, and plans to attract green investments into the country, an official told a media conference Tuesday.
Oil majors team up with UK-based carbon capture developer for CCS project in Malaysia
Two oil majors have teamed up with a UK-headquartered firm on the construction of carbon capture and storage (CCS) facilities in Malaysia, the companies announced Tuesday.
Japan to support biochar, SAF projects in Southeast Asia
Japan has selected around a dozen climate and environment projects across Southeast Asia that will receive government funding, including programmes promoting the development of biochar, sustainable aviation fuels (SAF), and methane emissions reductions from rice production.
South Korea national oil company to set up CCS business
South Korea’s national oil and gas company has decided to set up a carbon capture and storage (CCS) business, with plans to promote projects both at home and abroad, local media reported.
Malaysian state govt body signs multiple MoUs for developing carbon, biodiversity projects
A provincial government body in Sarawak state in Malaysia has entered into several partnerships for the exploration and development of carbon offset projects based on nature-based solutions (NbS), renewable energy, and biodiversity conservation.
VOLUNTARY
Brazilian carbon credit alliance defends REDD+ following Amazonas controversy
A Brazil-based nature-based solutions (NBS) industry group defended REDD+ projects on Monday in wake of recent recommendations by the public prosecutor of Amazonas state to halt all related activities affecting Indigenous and traditional communities.
Verra updates jurisdictional and nested REDD+ framework to align with CCP voluntary carbon label
Voluntary carbon standard Verra has updated its Jurisdictional and Nested REDD+ (JNR) Framework in order to align with the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCP) label, the standard announced Monday.
Compliance frameworks using offsets and CDR may steer VCM evolution, but quality concerns persist
Compliance-focused schemes that allow the use of offsets could shape the future of the voluntary carbon market (VCM) along with an increase in the usage of CO2 removal (CDR) credits, but quality concerns must be addressed to ensure growth, panellists told a webinar Tuesday.
Buyers’ alliance shares CDR offtake agreement template
An advanced market commitment for carbon dioxide removal (CDR) has released a standardised offtake agreement template for deals in the nascent technology sector.
Voluntary carbon removal standard body offers project developers digital MRV tool
Carbon removal (CDR) standard Isometric has released a digital monitoring, reporting and verification (dMRV) platform to speed up the verification and issuance of voluntary credits, it announced Tuesday.
BIODIVERSITY (FREE TO READ)
Regen announces blockchain storytelling update for carbon, ecocredits
US-based environmental credit platform Regen Network Development is trialling a feature to enable the publishing of project data, connected to blockchain, in a bid to improve the storytelling around their environmental credits.
Study identifies Key Biodiversity Areas to scale up Antarctica protection
Establishing 30 new Key Biodiversity Areas (KBAs) in the Southern Ocean surrounding Antarctica has the potential to ensure native wildlife in the region does not decline due to human activities, a paper has said.
Biodiversity Pulse: Tuesday August 20, 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 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!
Chile Carbon Forum – October 8-10, Santiago: The forum will bring together experts, business leaders, and government officials to discuss challenges and opportunities within the carbon market. It will cover topics such as carbon taxes, offsetting mechanisms, climate finance, carbon market regulations, international cooperation, nature-based solutions, and innovative emission reduction strategies. The agenda includes panel discussions, workshops, and keynote speeches that emphasize the importance of these topics in promoting a low-carbon economy and combating climate change. This forum is crucial for understanding and advancing collaborative approaches to sustainability. For more information, visit Chile Carbon Forum.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Charitable – The OPEC Fund for International Development, the charitable arm of the namesake oil cartel, is shifting its strategy away from support for projects that increase demand for oil and gas and towards developing countries’ climate adaptation, E&E News reported Tuesday. Inn 2024, more than one-third of the charity’s financial support – $217 mln largely in loans – has gone to countries’ adaptation to droughts, wildfires, floods, rising seas, and other climate impacts, according to E&E News’ analysis.
EMEA
EU gets real – The European Commission disclosed on Tuesday its draft decision to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China. Tesla will now face duties of 9% on imports to the EU, down from an anticipated rate of 20.8%, the Commission said. The EU announced a preliminary conclusion that the battery-electric vehicles value chain in China benefits from “unfair subsidisation” and pronounced that it is in the EU’s interest to impose “provisional countervailing duties” on BEV imports from China.
Late deadlines – Only 10 EU countries have submitted their long-term climate action plans (NECP) to Brussels, as Austria became the latest to submit its plans to the European Commission on Tuesday. Large countries like Germany and Spain continue to disregard the June 2024 deadline. Austria wants to halve its country’s emissions by 2030, according to the plan. The EU aims to cut CO2 emissions by 55% by 2030. EU countries must regularly send their long-term plans for meeting targets to Brussels, where they are compiled and reviewed. (Euractiv)
Harmful subsidies – The transport sector receives by far the biggest share out of all Germany’s government subsidies that are harmful to the climate, according to a report commissioned by the economy ministry. In their coalition agreement, the government parties had said they would tackle such subsidies – a topic which gained prominence in the wake of Germany’s budget crisis. In light of the report’s findings, environmental groups have renewed calls for these subsidies to be cut. (Clean Energy Wire)
Ahead of the game – Turkish steelmakers Tosyalı Demir Celik and Yacizi Demir Celik plan to invest significantly in solar power to cover all of their electricity needs and exempt them from carbon border taxes under the EU’s Carbon Border Adjustment Mechanism (CBAM) when shipping products to the bloc. The former will invest €48.3 mln in the construction of a 88 MW solar plant in Osmaniye province, while the latter, which operates within Diler Holding, said it would build solar power plants of 50 MW in Afyon and 60 MW in Ankara. The solar power produced from these plants will power the electric arc furnaces of the steelmakers, covering their entire electricity needs, and is expected to exempt them from CBAM charges. (Balkan Green Energy News)
Tariff extension – The administrator of carbon units on Russia’s registry has extended the current tariffs until Dec. 31, 2024, according to an announcement on Tuesday. The tariff extension has been made in accordance with the Resolution of the Government of the Russian Federation dated 30.03.2022 N 518. Further details of the tariffs here.
Big chunk of money– The European Commission has approved, under EU state aid rules, a €5 bln German measure to support the European Semiconductor Manufacturing Company (ESMC) in the construction and operation of a microchip manufacturing plant in Dresden. The measure will contribute to achieving the digital and green transition, and strengthens Europe’s clean tech manufacturing sector. The manufacturing facility will deliver high-performance of chips, which will offer better performance while at the same time reducing total power consumption. The plant is planned to be operating at full capacity by 2029.
ASIA PACIFIC
Climate finance – The Asian Development Bank has said it is on track to launch its new $12 bln climate finance programme at COP29 in Azerbaijan in November, with Australia potentially joining its list of sovereign backers. ADB plans to support the first transaction under the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP) by end 2024, and private co-financing opportunities may also emerge from the initiative. IF-CAP is expected to mirror ADB’s 60:40 financing split between adaptation and mitigation projects. Sovereign guarantors so far signed up to participate are Denmark, Japan, South Korea, the UK, the US, and Sweden. (Asian Investor)
Regen ag investing – Vietnam-focused private equity house Mekong Capital plans to launch a new fund focused on regenerative agriculture, named the Earth Regeneration Fund with a target of $200 mln. The fund’s launch follows the firm’s recognition of the growing need for social and environmental development in Southeast Asia, and investors’ growing interest in meeting ESG requirements. The Mekong Enterprise Fund IV recently committed $5 mln to Husk, a biochar fertiliser company based in Cambodia that helps farmers increase yield and use less chemical fertilisers.
AMERICAS
DNC Day 1 – The first day of the Democratic National Convention (DNC) in Chicago saw minor references to energy and the environment, E&E News reported Monday. Elected officials in support of Harris’ campaign spoke to the party’s acknowledgement of climate change and its ensuing threats, in contrast to Republican leaders. Other topics included the boom in manufacturing activity since Biden took office via electric vehicles. President Biden also noted the climate legacy of his administration during his speech, including his goal to cut emissions in half by 2030, although the US is not presently on track to meet its targets despite the administration’s efforts, experts have said. However, Senate Majority Leader Chuck Schumer said that climate would be at the top of his agenda should the Democrats win the White House, Senate, and House in November, and is eyeing a reconciliation bill to get to net zero by 2050,
Siting review fees – The US Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) on Monday proposed a fee to recover costs related to siting reviews of LNG project applications in cases where design and construction costs total $2.5 bln or more. PHMSA said the proposed rule would implement a mandate under the Pipelines and Enhancing Safety Act of 2020 (PIPES) to recover such expenses for the siting review of LNG projects. Furthermore, the proposal would help provide resources for siting reviews to promote public safety and environmental protection objectives of the Office of Pipeline Safety (OPS), said DOT. It would also revise current regulations authorising PHMSA’s cost recovery for design safety reviews of gas, hazardous liquid, and CO2 pipeline facilities to improve the clarity of the regulations and reduce unnecessary administrative burdens.
EV ally – Republican presidential nominee Donald Trump may be softening his attacks on electric vehicles and related tax credits to appease Elon Musk, the founder and CEO of Tesla, E&E reported. Trump said Monday that he would be willing to offer Musk a role in his administration — possibly a Cabinet position — if he gets elected in November. The former president said he would “certainly” hire Musk if he were interested. Trump also refrained from confirming whether he would eliminate the tax credit for EVs under the Inflation Reduction Act (IRA), and instead said he is “not making any final decisions on it”.
H2 research – US Department of Energy (DOE) announced Tuesday $8.8 mln for 11 research and development projects to improve the performance of hydrogen-fuelled turbines. The projects aim to enable up to 100% clean hydrogen in gas turbines for low-carbon power generation. Six recipients will perform fundamental materials research, four recipients will develop knowledge of material stresses in engines operating on hydrogen fuels, and one recipient will focus on applied research. All projects are university-based across the US.
Don’t touch my fridge – New York Governor Kathy Hochul (D) is facing pressure from all sides as her administration considers final rules targetting refrigerants that contribute to global warming, reported E&E News. The proposed rules released in Dec. 2023 would not expressly mandate the removal or upgrade of existing equipment — except in supermarkets by 2035 — but would set strict standards for sales of new commercial refrigerators, residential heat pumps, and chillers in the next decade.
VOLUNTARY
Oil and gas offsets – The prime beneficiaries of plans to allow corporations more license to use carbon credits to cut total emissions may end up being the main perpetrators of the global climate disaster – oil and gas companies – writes Bloomberg in an opinion piece published Tuesday. The feature focuses on the ongoing work being done by the SBTi towards revising its corporate net zero standard, and how Big Oil could stand to benefit from any relaxation of the rules around carbon credit use towards addressing Scope 3 emissions.
Offset offering – Logistics company Santos Brasil announced Monday that it is offering customers the chance to offset the emissions of their operations with the company through its LCL Carbon Neutral programme. Through this programme, the customer is informed monthly about the total emissions related to its operation, while Santos handles the offsetting of these emissions through the acquisition of carbon credits. Initially, the programme is intended exclusively for the activities developed in the customs industrial logistics centres in Santos and Guaruja, and for the LCL (less than container load) fractional cargo customer segment, operated by non-vessel operator common carriers (NVOCC) and freight forwarders. Santos said NVOCC company Allink Neutral Provider is amongst the customers who will have their emissions offset via the programme.
AND FINALLY…
After the storm – Logging of trees following wildfires – also known as the “wildfire salvage” industry, is on the rise in British Columbia, but the province’s logging rules also allow companies to harvest living trees in wildfire zones, The Narwhal reported last week. Wildfire salvage typically means clear cutting a burned area and offers an opportunity for companies to access discounted wood. However, analysis by The Narwhal found that more than half of the logs harvested in five wildfire areas in BC’s interior were classified as construction grade, meaning they could have come from trees that survived the fire. A spokesperson for the provincial Ministry of Forests told the Narwhal that it doesn’t have regulations that compel companies to address the ecological risks of salvage logging, nor require companies to leave live trees in burn zones, nor track how many live or green trees are logged within wildfire zones. While the spokesperson added that wildfire salvage logging helps reforestation efforts, an internal briefing note within the ministry, released through a freedom of information request, said that salvage operations may damage natural regeneration in forests not severely burned by wildfires. The ministry also said that salvage logging can reduce the risk of wildfire in the future, but wildfire ecologist Robert Gray disagreed with the claims and told the outlet that it could exacerbate the risk instead.
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