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TOP STORIES
Australian Senate passes mandatory climate reporting legislation
The Australian federal government on Thursday passed legislation on mandatory climate reporting, which it said would provide greater clarity to investors and boost investment in the net zero transformation.
South Dakota Supreme Court reverses lower court decisions on CO2 pipeline
South Dakota’s highest court reversed prior rulings made by two lower circuit courts in support of a major CO2 pipeline construction, jeopardising the project’s development in the state.
AMERICAS
Speculator migration to 2025 extends in CCAs, compliance keeps building RGGI net length
Financial players continued to migrate to V25 California Carbon Allowance (CCA) holdings over another week, while compliance demand for RGGI Allowances (RGAs) extended as prices surged to new record highs, according to weekly data from the US Commodity Futures Trading Commission (CFTC).
US-led initiative outlines how corporates can decarbonise value chains
A US-led carbon crediting programme published a brief last week detailing how its credits can be used in corporate climate strategies.
EMEA
Sweden launches BECCS auction with $3.4 bln grants available
Sweden has launched its bioenergy with carbon capture and storage (BECCS) auction, allocating 36 billion SEK ($3.4 bln) in grants over 15 years of storage.
European banks penalise polluting companies with higher interest rates -report
European banks charge a higher interest rate to firms with elevated carbon emissions and a lower rate to those that commit to reducing their climate impact in the future, finds a new report.
DRC confirms withdrawal plans for oil exploration in key peatland, forest carbon areas
The Democratic Republic of Congo (DRC) has stepped back from plans to auction oil concessions on protected areas in the Congo Basin with carbon project potential, according to a press release.
Euro Markets: EUAs post 1.9% weekly drop as sellers remain in charge, while gas falls 7.5%
European carbon allowance prices fell for a fourth day in a row on Friday, posting a weekly loss of 1.9%, as selling interest continued to out-muscle buyers even as the market shadowed movements in natural gas, which posted a 7.5% weekly decline.
ASIA PACIFIC
NZ Market: NZU price finishes the week at five-month high
The New Zealand carbon market finished the week trading at a five-month high on the back of the government’s decision to drastically cut the number auction volumes next year, with over 1.7 mln units traded on the spot market this week.
CN Markets: CEAs drop to one-month low, weekly trading volume picks up
Permits in China’s national emissions trading scheme (ETS) fell below the 90 yuan ($12.61) mark over the past week, hitting their lowest level in a month, though trading activity picked up significantly to end the week with more than 2 million units changing hands.
China opens window for CCER project registration
China has begun accepting applications for carbon projects under the national offset programme, with participants expecting new credits to be issued by the end of the year.
Taiwan urged to stop financing fossil fuels through public funds
Taiwan should make it mandatory for public funds to consider climate risks in their investment and financing decision-making and include a timeline for their divestment from fossil fuels, an environmental group has urged.
China suspends steel capacity replacement plans
China’s industry ministry has instructed all regions to cease issuing new steel capacity replacement plans, a move that could change the dynamics in the oversupplied and ETS-destined market.
INTERNATIONAL
Carbon pricing among key policy levers needed for climate success, finds report
Carbon pricing is a key policy tool to ensure climate success, especially when combined with subsidies for clean energy and effective regulation such as state-induced coal phaseout, according to an international report published this week.
VOLUNTARY
Zimbabwe evaluates voluntary carbon credit potential in industrial hemp farming
Government stakeholders and private sector representatives met in Harare, Zimbabwe this week to discuss strategies to generate carbon credits from hemp production, according to local media.
BIODIVERSITY (FREE TO READ)
Mexican non-profit plans to earn biodiversity, carbon credits for spider monkey reintroduction
A Mexican non-profit has partnered with a France-based environmental company to launch a biodiversity and carbon credit project aimed at reintroducing spider monkeys on a 600-hectare area in Mexico, Carbon Pulse has learned.
INTERVIEW: Developers unclear on how to source Biodiversity Net Gain units
The rules for buying offsite units to comply with England’s Biodiversity Net Gain (BNG) requirements aren’t clear enough for developers currently, with some local authorities better equipped to advise on the market than others, according to a sustainability consultancy working with large building clients.
Australia offers another A$200 mln to aid Great Barrier Reef
The Australian government will spend an additional A$192 million ($129 mln) to improve and protect the Great Barrier Reef’s water quality in order to prevent bleaching events and aid recovery when they do occur.
Plastic credits can support rollout of extended producer responsibility schemes, says Verra
Plastic credits can support the implementation of extended producer responsibility (EPR) schemes in emerging markets and developing economies (EMDEs), according to a new report by carbon standard Verra.
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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
Tackling methane – A global group of some 50 organisations, including non-profit Climate Bonds Initiative (CBI) and the International Energy Agency (IEA), are working to develop new guidelines to help oil gas producers seeking to slash methane emissions, Bloomberg reported. The group aims to release funding recommendations at the COP29 conference in November and showcase two demonstration deals. CBI, which assesses sustainable debt, would certify the methane reduction projects that meet the criteria. Fossil fuels are responsible for roughly 35% of methane generated from human activity, but received less than 1% of the $13.7 bln annual average directed toward methane mitigation efforts in 2021 and 2022, according to non-profit Climate Policy Initiative.
EMEA
Egypt VCM launch – Egypt’s Prime Minister Mostafa Madbouly announced the launch of the country’s voluntary carbon market in the weekly cabinet press conference on Thursday. The market will be overseen by the Financial Regulatory Authority and saw the conclusion of its first futures contract and three trades last week. Madbouly also said that the government will adopt the National Low-Carbon Hydrogen Strategy and that 4 GW of clean energy will be added to the grid by next year. Conversely, he also reiterated the government’s plan to restore and increase the country’s oil and natural gas production to previous levels and beyond.
Bill rise – A typical UK household’s annual energy bill will rise by £149 in October under the new price cap by energy regulator Ofgem, due to higher prices on the international energy market owing to rising geopolitical tensions and extreme weather driving competition and demand for gas. People using an average amount of gas and electricity will pay £1,717 a year, a 10% rise compared with now, the BBC reports. Prices are still lower than last winter, but the rise in bills comes as some support for bills has been withdrawn, and the new government has announced it will halt winter fuel payments for 10 mln pensioners in England and Wales.
E-fuel ramp-up – Germany needs biofuels and synthetic fuels made from renewable electricity (e-fuels) to ensure that its fleet of combustion engine vehicles can help reach climate targets, said the German Association of the Automotive Industry (VDA). However, the EU’s Renewable Energy Directive III – RED III – is not ambitious enough to ramp up use of such fuels, it said. RED III stipulates a combined minimum quota for biofuels and e-fuels at 5.5% for 2030 but the VDA says that e-fuels should have their own target, and that it should be set at a minimum of 5% by the end of the decade – to help incentivise their production. It estimates that by 2030, there will still be 40 mln combustion engine cars and trucks in Germany that need powering with something other than fossil fuels. E-fuels can be produced from captured CO2 combined with green hydrogen, but are generally considered to be best used in sectors like aviation and shipping where there is no electric alternative, unlike in many road vehicles that can be electrified today and directly use the electricity more efficiently.
Airport carbon – Edinburgh Airport has reached Level 4 ‘Transformation’ in the Airport Carbon Accreditation (ACA) scheme, which is one of the highest levels in the global carbon management certification programme for airports. Work to achieve Level 4 has included publication of a net zero strategy, partnering with airlines and airport partners on understanding science-based targets to achieve an emissions reduction, and mapping to understand and act upon Scope 3 (indirect) emissions through the airport’s supply chain. Plans are now underway to work towards a Level 4+ Transition, in which an airport offsets its remaining carbon emissions with reliable carbon credits.
ASIA PACIFIC
Workshopping – Papua New Guinea’s Climate Change Development Authority hosted a national carbon policy roadmap consultation workshop, specifically looking to develop a blue carbon policy for the Pacific nation, the Post Courier reported. The CCDA’s blue carbon policy framework will seek to harness 482,000 hectares of mangroves and 700 sq-km of seagrass ecosystems in the country, which play a vital role in coastal health by stabilising sediment, sequestering carbon, and providing food and habitat for marine life, the authority said. The CCDA’s two-day workshop gathered stakeholders to provide input into the policy roadmap.
Overseas expansion – Japanese startup Asuene has entered into a business partnership with Green Frog Innovation to expand its ESG consulting services in Thailand and beyond, it announced Friday. The two companies said they will use a cloud service developed by Asuene to help clients visualise, reduce, and report their CO2 emissions.
Equinor out – Equinor has abandoned plans to develop offshore wind in Vietnam, Reuters reported Friday. The oil and gas giant had been looking at the nation owing to strong winds traversing relatively shallow waters, it reported. “We have decided to discontinue our business development in Vietnam and to close our office in Hanoi,” an Equinor spokesperson said in an interview. Vietnam has the highest renewable energy penetration in Southeast Asia, composed largely of solar and onshore wind and driven by a period when tariff rates for power were high enough to incentivise a large development spurt. The news service also reported Friday the country was seeking an LNG cargo as first gas for its second import terminal.
BP taps into SAF – Oil major BP has acquired a 15% stake in a subsidiary of sustainable fuel aviation (SAF) company Zhejiang Jiaao Enprotech Stock worth 350 mln yuan ($49 mln), Bloomberg News reported. The acquisition is subject to government approvals. The Chinese firm is scheduled to complete the construction of a sustainable jet fuel plant in the first quarter of 2025, with the capacity to produce 500,000 tonnes of SAF a year. Biofuel will be made from used cooking oil and animal waste fat, Zhejiang Jiaao said in a separate statement.
AMERICAS
Climate whispers – Democratic presidential candidate Kamala Harris devoted only half of a sentence to climate policy in her 40-minute speech on the final day of the Democratic National Convention (DNC) on Thursday, E&E News reported. Harris said that “fundamental freedoms” were at stake in the election, including “the freedom to breathe clean air and drink clean water and live free from the pollution that fuels the climate crisis”. However, numerous speakers highlighted President Joe Biden’s administration’s climate achievements, including the Inflation Reduction Act (IRA), before Harris took the stage to accept her presidential nomination. With the DNC release of the official party platform early this week, both major US political parties have now made public their priorities regarding climate, energy, and the environment if they emerge victorious in the November presidential election
Marshall Plan for climate – Brian Deese, an economic adviser for Vice President Kamala Harris’ presidential campaign, on Thursday proposed an economic programme to offer US allies loans to purchase the country’s green energy technologies as part of a wider strategy to combat climate change, Reuters reported. Deese – who was an economic adviser under President Joe Biden and former President Barack Obam – billed it as a new version of the Marshall Plan, a mechanism of grants set up by President Harry Truman and Secretary of State George Marshall, to help Europe recover after World War Two. Although Deese is promoting the plan independent of his role as Harris’ adviser, it could provide insight into potential policies under her presidency in case she secures victory at the Nov. 5 election.
Neighbours’ influence – Renewable energy generation in a US state can be positively influenced by Renewable Portfolio Standard (RPS) policies in neighbouring states, research published in the Proceedings of the National Academy of Sciences showed. RPS policies in leading states can cause ripple effects in surrounding states that do not have or have been slower to adopt such measures. For states without an RPS, this positive spillover across state borders is larger when the non-RPS state has an advantage in renewable energy resource endowment over the neighboring RPS state. This is because the RPS state can more easily source the non-RPS state’s renewables, according to the study. These spillovers also point to the spatial influence of such policies caused by knowledge and information sharing between energy developers in neighbouring states, as well as the strategic resource planning of multi-state utilities, the authors noted.
Low-carbon racing fuel – Fuel producer Gevo has signed a purchase agreement for its low-carbon intensity fuel blend with Shell Global Solutions Deutschland. The fuel will demonstrate its capability to meet the demands of premium motorsports while offering lower carbon emissions. It’s produced from sustainable feedstocks like agricultural waste by US-based Gevo, which also makes sustainable aviation fuel (SAF) and renewable diesel.
Budgeting – California Governor Gavin Newsom (D) will pull back his administration’s request to fund enforcement of SB 1137, reported E&E News, which was passed into law in 2022 and championed by the Governor for the restrictions it would impose on residential oil drilling. The law prohibits new drilling within 3,200 feet (975 metres) of most occupied buildings and imposes additional requirements on wells already in that zone. If lawmakers agree, the prohibition on new wells will remain in place, but the provisions for existing wells will be on hold. California faces a significant budget shortfall – in the upwards of $40 bln – that has halted progress of other climate policy measures through legislature, as Newsom faces pressure to balance the state’s deficit.
Pushback against ESG pushback – US public pension funds have opposed a Republican probe into the country’s members of investor-led initiative Climate Action 100+ (CA100+), warning that climate engagement is consistent with their fiduciary responsibilities. Earlier this month, House Judiciary Committee Chairman Jim Jordan (R) along with other Republican lawmakers had demanded information from over 130 US-based companies, retirement systems, and government pension programmes about their CA100+ membership. The committee had allegedly uncovered evidence that these organisations were scheming with climate activists through initiatives like CA100+ to implement “left-wing” ESG policies that the chairs said could potentially be in violation of US antitrust law. Since the release of the letter, the CA100+ has seen a spate of exits by US asset managers, including Goldman Sachs and Clearbridge Investments. However, no US public sector pension funds are known to have left the initiative since the letter was sent. Responses to the Republican letter by public sector pension fund members of CA100+, obtained by Responsible Investor under freedom of information laws, show a strong response against the probe. For example, the Seattle City Employee’s Retirement Scheme (SCERS) refused to answer the questions listed in the Republican letter directly. In its response, the $4 bln fund said that decarbonising the real economy would “safeguard its investment portfolio” and that this would be advanced through the fund’s company voting and engagement as well as policy advocacy. (Pension Policy International)
VOLUNTARY
Verra REDD mapping – Verra announced Friday that it has further advanced its deforestation risk mapping, data collection, and activity data allocation for jurisdictional REDD projects. The effort is intended to support the implementation of the standard’s newer REDD methodologies (VM0048 and VMD0055). The second round of activity has been initiated in 40 national and subnational jurisdictions covering existing REDD projects, REDD projects under development, and areas with a strong potential for new projects. Jurisdictional activity data captures the area deforested over a given time, and the allocation of this data to projects in proportion to the relative risk of deforestation in project areas is one of the key innovations in VM0048, Verra said, as it enables proponents to move away from using reference regions to forecast future deforestation. Collecting jurisdictional activity data is also the first step in establishing project baselines under VMD0055, as the resulting map data and deforestation estimates are then used to create the risk maps that enable allocations of the jurisdictional activity data to projects. This approach to baseline setting allows for the number of verified emission reductions generated by all projects in a particular jurisdiction not to exceed the emission reductions calculated for that jurisdiction, Verra said. The standard noted that it anticipates that data for all jurisdictions with existing REDD projects will be available for allocation in 2025, and by the end of 2025, REDD projects using Verra’s new REDD methodology will transition to using the jurisdictional baselines. Verra will inform all proponents in its registry once data for their respective project jurisdictions is available for allocation. The move is also relevant for REDD projects that will need to transition to VM0048, including VM0006, VM0009, VM0015, and VM0037, Verra added.
INVESTMENT
Green bank – The Coalition for Green Capital (CGC) announced Thursday that it is open for business proposals as the first US national green bank. The firm has $5 bln to invest in public-private partnerships by way of an April grant announced by the US Environmental Protection Agency (EPA), which mandates for at least 50% of the investments to take place in low-income and disadvantaged communities. CGC said it expects to use the $5 bln award to cause $21.1 bln in cumulative private-public investing in clean power projects within the first year of receiving funds.
AVIATION
CORSIA consultation – The UK ETS Authority is seeking views on proposals to establish a new charging policy for fees and charges associated with the administration of CORSIA for Northern Ireland registered aeroplane operators by NIEA from Jan. 1, 2025. The consultation opened on Friday, Aug. 23, 2024 and closes on Oct. 4, 2024. Responses can be received via email or by post, details here. CORSIA is the Carbon Offsetting and Reduction Scheme for International Aviation, which requires airlines from participating countries to monitor and report their emissions, while also purchasing approved carbon credits when their CO2 output exceeds an agreed baseline, currently set at 85% of the industry’s 2019 activity levels. Demand for Eligible Emissions Units (EEUs) is projected to range between 64-162 million units during Phase 1 (2024-26).
AND FINALLY…
Hurricane clause – Grenada has become the first country in the world to use a hurricane clause in a government bond, which allows authorities to postpone debt payments in the wake of a major national disaster, Reuters reported Monday. Granada will not make the bond’s scheduled payments due Nov. 12 and May 12 of next year, and will be added on to the $112 mln bond’s lump sum principal payments until the end of its term in 2030. Hurricane Beryl, which hit the country last month, resulted in damage estimated equivalent to a third of its economic output, according to Prime Minister Dickon Mitchell. It’s the first time a country has triggered the clause, and the country was also the first to include one in 2015, after a prior hurricane led to two debt restructurings in the span of a decade. It’s expected that similar clauses will continue to be widely used as climate change leads to more frequent and intense storms, the report said.
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