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TOP STORY
ANALYSIS: Despite November uptick, EU fossil power emissions on course for yet another heavy annual drop
Annual EU carbon emissions from electricity generation covered by the bloc’s ETS are set to slump heavily once again in 2024 despite a strong rise in gas-fired output last month, analysts have said, though next year could see a much tighter market and a sustained price recovery.
INTERNATIONAL
Gold Standard flags World Bank’s MIGA as its only recognised insurance policy for CORSIA credits
Gold Standard on Monday published new guidance on the approval process of its carbon credits for use under the first phase of the CORSIA global aviation offsetting scheme, stating that only projects insured via the World Bank’s Multilateral Investment Guarantee Agency (MIGA) will be deemed eligible.
BRIEFING: Article 6 causing confusion for corporate buyers – but should boost confidence long term
The agreement on Article 6 at COP29 last month is raising confusion among corporate carbon credit buyers but it should boost confidence in the market longer term, participants told an industry conference last week.
VOLUNTARY
VCM Report: CORSIA carbon futures bounce after ICAO formally approves new standard bodies
Eligible futures for CORSIA Phase 1 bounced higher on Monday after a late Friday announcement from UN agency ICAO confirmed four new standard bodies have been formally granted eligibility to supply credits to the international aviation offsetting scheme.
INTERVIEW: Book-and-claim deals could drive early adoption of low-carbon cement
Selling low-carbon cement through book-and-claim deals, which separate the emissions savings from the physical product that’s delivered, can help to scale up clean technologies by addressing the problems of geographic constraints and cost premiums, according to a manager at a clean cement developer.
AMERICAS
Canadian carbon markets at risk of oversupply -report
A think tank suggests that Canadian provinces’ large-emitter trading systems would require reform to prevent a credit oversupply which they say could undermine effectiveness of reducing industrial emissions via such market-based mechanisms, in a report published Monday.
Western Canadian business groups file legal challenge against federal greenwashing law
Two Western Canadian business associations filed a lawsuit against the federal government claiming that a recent law designed to tackle greenwashing violated fundamental Canadian rights.
US appeals court sides with Kentucky in EPA case over ‘good neighbour’ rules
A US Circuit Court delivered a two-pronged win for Kentucky against the US EPA after ruling that the agency’s denial of the state’s pollution control plan violated federal law.
RGGI Market: “Overpriced” RGAs hold more than $1 above Q4 weak auction settlement
RGGI Allowances (RGA) in the secondary market reverted up from a heavily discounted permit sale mid-week for the closing quarter of 2024, with traders anticipating further downside and regulatory updates to inform year-end direction.
California regulators delay decision on profit cap for oil refiners
A California agency told media outlets it would be delaying a key decision on implementing the governor’s plan to cap oil refiners’ profits.
California scraps e-motorcycle sales target mandate
California regulator ARB last week shelved its plans to ramp up zero emission motorcycle (ZEM) use in the state by mandating sales targets and imposing stringent rules on internal combustion engine (ICE) counterparts.
Industry veteran launches new Houston-based environmental brokerage, consulting firm
A financial markets veteran has started a new Houston-based brokerage and consulting firm specialising in environmental credit solutions.
LATAM Roundup: Distress and opportunities as CORSIA, CO2 taxes, CBAM take root
In a week that saw UN civil aviation body ICAO publish its technical report on the flagship CORSIA offsetting scheme, which is being incorporated into national regulations around the world, this and other compliance carbon pricing initiatives posed diverse challenges and opportunities around the LATAM region – from Trinidad and Tobago to Guyana, and Mexico to Brazil.
ASIA PACIFIC
Australia’s green iron opportunity could cut its entire emissions footprint -report
One of Australia’s biggest resource powerhouses could export billions of dollars worth of green iron by the beginning of the next decade and A$170 bln ($109 bln) by 2050 while saving emissions bigger than the entirety of Australia’s annual carbon output, a report said Monday.
NSW EPA to increase transparency on coal mine emissions
The New South Wales Environmental Protection Agency (EPA) is looking to strengthen GHG emissions regulations at its coal mines, based on feedback on how licences are governed.
Vietnam, GGGI extend partnership on climate, carbon pricing
Vietnam and the Global Green Growth Institute (GGGI) have extended for five years a cooperative framework on climate action and carbon pricing designed to put the Southeast Asian country on track to meet its ambitions under the Paris Agreement.
EMEA
‘Lead markets’ for low-carbon cement gain momentum
Demand for pricier low-carbon industrial products can be encouraged with a reform of public procurement rules and the creation of ‘lead markets’ for green cement, the industry has argued ahead of new EU policy proposals due in the coming mandate.
EU should use CBAM revenues to help poorer countries decarbonise their steel too -think tank
The EU can paint its Carbon Border Adjustment Mechanism (CBAM) in a good light by redistributing revenues to help the least developed countries decarbonise their own steel industries, according to research published on Monday.
UK set to incentivise clean hydrogen-to-power technologies
The UK government will introduce a support scheme to encourage investment in clean hydrogen-to-power projects, following supportive feedback in a public consultation, it announced on Monday.
Liberia national carbon policy to push Article 6 markets, achieve UN targets
Liberia plans to design a national policy on carbon markets as a precursor to instituting legal and governance frameworks for Article 6 carbon trading under the Paris Agreement, with the ultimate goal of achieving its forthcoming Nationally Determined Contribution (NDC) UN climate targets.
Saudi Arabia offers Kenya $8 per carbon credit in COP16 VCM deal -media
Saudi officials and private sector players are open to buying carbon credits from Kenya in a voluntary market (VCM) deal at $8 per tonne, according to statements made on the sidelines of the UN Convention to Combat Desertification (UNCCD) COP16 conference in Riyadh last week.
International carbon registry partners with Iceland environment agency to develop offset project standards
An international carbon registry has partnered with Land and Forest Iceland, a government agency, to develop offset project standards and help advance the country’s climate initiatives.
Slovenia pledges €403 mln to rescue coal assets amid phaseout push -media
The Slovenian government has committed €403 million to prevent the bankruptcy of the Sostanj coal power plant and the Velenje mine, taking control of both from state-owned utility Holding Slovenske Elektrarne (HSE) as part of its plan to phase out the fuel source by 2033.
Euro Markets: EUAs drop by most in six months as options hedging amplifies gas-driven weakness
European carbon prices dropped by their biggest margin in six months as traders positioned themselves ahead of the upcoming expiry of the December options contract, amplifying the effect of weaker gas prices, while UK carbon allowances fell to their lowest in seven months amid low gas-fired generation and continued regulatory uncertainty.
BIODIVERSITY (FREE TO READ)
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Colombian standard puts first biodiversity credit project out for consultation
A Colombian environmental standard has opened a public consultation on the first conservation project registered under its biodiversity credit programme, planning to certify it next year.
New Zealand advised to set up biodiversity credit market
Launching a biodiversity credit market is among actions New Zealand should take in order to scale investments in nature-based solutions (NbS), according to a global consultancy.
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EVENTS
Carbon Forward Middle East – Jan. 16-17, Abu Dhabi – Announcing Carbon Forward Middle East in Abu Dhabi, a great new event to explore carbon markets in the MENA region. We’ll be releasing more details about this conference soon. For now, put Jan. 16-17 in your calendar and email info@carbon-forward.com to express interest in attending, speaking, or sponsoring.
European Industrial Carbon Management Summit – Dec. 5, Brussels: The Zero Emissions Platform flagship event will bring together industry leaders, policymakers, civil society and scientific experts to discuss the future of industrial carbon management across Europe. Get ready for insightful keynotes, case studies from pioneering projects, and panel discussions on the deployment of industrial carbon management technologies. The Summit is the perfect space to connect with peers working at the forefront of industrial decarbonisation. Registrations are now open – do not miss your chance to be part of the conversation.
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Job listings this week
- *Asia-Pacific Environmental Markets Correspondent, Carbon Pulse – Remote
- *Event Coordinator, Carbon Forward – Remote (UK)
*Premium listings
See all listings or post a job
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SUBSCRIPTION OFFER
We’re offering new subscriber organisations 15 months of access to our news and intelligence for the price of 12. Purchase an annual subscription by Dec. 20, 2024, and get 3 extra months for free. Have we recently quoted you a price? Our 15-for-12 offer applies to that too, if you purchase your subscription by Dec. 20. Email sales@carbon-pulse.com to inquire.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
High-profile loss – Goldman Sachs has announced it will leave the Net-Zero Banking Alliance, largely driven by the need to comply with mandatory reporting guidelines, a person familiar with the matter told Bloomberg. The rollout of the EU’s Corporate Sustainability Reporting Directive (CSRD) has been a key development guiding the decision, they said. The news comes as climate coalitions face increasing internal tensions as some members balk at the prospect of explicit financing requirements, green asset values have dropped, and there has been a growing tide of anti-ESG sentiment from some political arenas.
EMEA
Published at last – The world’s first legislation defining what carbon removals has been published in the EU’s official journal. The regulation establishing a Union certification framework for permanent carbon removals, carbon farming, and carbon storage in products (CRCF) has now been published. Work on the carbon removal methodologies started via carbon expert groups already, and the first methodologies should be ready by early 2025, to start certifying the first units in 2026.
Green Deal, CBAM rethink – Polish Climate and Environment Secretary of State Krzysztof Bolesta believes that Europe can enhance competitiveness by embracing clean technologies while revisiting parts of the Green Deal. Speaking to Euractiv ahead of Poland’s upcoming presidency of the Council of the EU, Bolesta outlined key priorities, including accelerating the energy transition, addressing high energy prices, and boosting economic competitiveness. Bolesta highlighted Poland’s unique challenge due to its reliance on coal but underscored the need to modernise electricity grids, expand renewable and nuclear energy, and ensure affordable energy for households and businesses. He also called for re-evaluating the Carbon Border Adjustment Mechanism (CBAM) to better support exporters and simplify its implementation. He advocates for technological neutrality, supporting a range of clean technologies such as renewables, hydrogen, nuclear power, and small modular reactors (SMRs). For Poland’s district heating, which remains coal-dependent, Bolesta proposed electrification, heat storage, and cleaner technologies, while acknowledging challenges in financing the transition without burdening consumers.
Oil merger – Shell and Equinor will combine their UK North Sea offshore oil and gas assets to create a new Aberdeen-based company with 1,300 employees. The company will be the North Sea’s largest independent producer, expected to produce more than 140,000 barrels of oil equivalent (BOE) a day next year. There will be no job losses as a result of the deal, the companies have said, adding that the joint venture will allow for a more cost-competitive way of exploiting the gradually declining oil and gas basin. The deal is subject to regulatory approval and is expected to close by end 2025. (the Guardian)
Lucrative Scottish trees – A Scottish estate is being sold at a premium after 1.5 mln trees were planted by the firm that acquired it four years ago in one of the largest natural capital schemes in the UK. Abrdn Property Income Trust is marketing the Far Ralia estate in the Cairngorms for £12 million – £4.5 mln more than it paid for it in 2021 – after more than £2.5 mln of public money was approved by Scottish Forestry to plant the trees. The tree-planting scheme will generate potentially lucrative carbon credits for every tonne of CO2 the woodland removes from the atmosphere, leading to criticism that the firm is making profits thanks to the public investment, The Scotsman reports. “We have definitely had a bit of flack from representatives from the community who don’t feel that we consulted with them,” said Fraser Green, head of natural capital investment at abrdn. “There are lessons to be learned there in that community engagement is something that needs to be ongoing,” he added, admitting that “mistakes” had been made.
Failed tender – The Danish Energy Agency has closed the first round of its North Sea offshore wind tender — including three offshore wind parks with a combined capacity of 3 GW — since it failed to receive any bids. The tendering procedure offered six offshore wind projects with a total capacity of 6GW, plus the potential of overplanting by installing as much as 10GW in the area. However, the projects were offered without subsidies and with an annual concession payment for the right to use the marine area over a 30-year period combined with 20% state co-ownership. The DEA plans to engage in dialogue with the market to identify reasons for the lack of bids. Denmark aims to reach 12.9 GW of offshore wind by 2030. As of end -2023, the country had 2.6 GW of offshore wind.
Make a wish – The UK and US have launched a £40.5 mln joint project to advance fusion energy with the UK’s Tokamak Energy, it was announced Monday. The project will drive US funding into UK supply chains and will start in 2025 at Tokamak Energy’s Oxfordshire facility. It will focus on enhancing the efficiency and durability of plasma-facing components, which is a key challenge to unlocking the vast potential of fusion energy. It marks the first joint project since the UK and US announced their fusion energy partnership in Nov. 2023.
ASIA PACIFIC
Offshore JV- BP and Japan’s JERA have agreed to combined their offshore wind business to form a standalone, equally-owned joint venture that they say will become one of the largest global offshore wind developers, owners, and operators. The two companies said in a joint statement the JV would be called JERA Nex BP, and would have a balanced mix of operating assets and development projects, with a total 13 GW of potential net generating capacity. The formation of the JV is designed to speed up development from the combined pipeline and gain better access to competitive financing. The partners have agreed to provide capital funding for investments committed the end of 2030 of up to $5.8 billion. JERA Nex BP’s initial focus will be to focus on progressing existing projects in North-West Europe, Australia, and Japan.
DAC it – Australia’s Pilot Energy and developer Capture6 have signed a joint development agreement that will see the inclusion of DAC technology at the former’s Mid West Clean Energy Project. Capture6’s tech will reduce the environmental impacts of the plan’s water treatment system while also capturing CO2, which can generate a revenue stream from carbon credit sales for the parties, reports the Australian newspaper. The DAC tech will be deployed next year.
2040 target – Renewable energy sources are expected to be the biggest contributor to Japan’s planned energy mix for fiscal 2040, according to Jiji Press, which cited unnamed sources. The government is set to soon release the energy mix targets in a draft of the upcoming revision of its basic energy plan, which shows the direction of the country’s medium- to long-term energy policies. It is also expected to aim for a 20% share of nuclear energy in total power generation in FY2040.
Partnership – Japanese energy firm Eneos has teamed up with WasteBox to further develop its ‘carbon-neutral’ fuel and LNG products using carbon offsets, it announced Monday. The two companies said they will work together to provide carbon offset support services that are not limited to fuel and gas, and work with clients to advance their decarbonisation efforts.
Licensed – The state of Sarawak in Malaysia has for the first-time issued a carbon license to a developer SaraCarbon for the generation of high-quality carbon credits in the state, official media outlet Bernama reported. SaraCarbon is the subsidiary of the logging company Sampling Group and is already developing a 39,000-hectare Marudi REDD+ project in the state. Last year, SaraCarbon also became the first company in Sarawak to be granted a forest carbon study permit.
Nuclear fizzle – Australia’s peak science body, the CSIRO, has released follow-up analysis which found that building a nuclear power plant in Australia would likely cost twice as much as renewable energy, even accounting for nuclear reactors’ longer lifespan, the ABC reports. It comes as the right-wing Coalition party plans to release costings on its plan to build seven nuclear reactors on the site of retired coal-fired power stations in Australia, claiming it will reduce power prices and supply zero-emissions baseload power. However, an update to the CSIRO’s GenCost report has found, consistent with its previous reports, that renewable energy is the cheapest option. Solar PV and wind were found to cost A$67-105 ($42-67) per megawatt-hour in 2030, compared to conventional nuclear power (A$150-245/MWh) and small modular reactors (A$285-487/MWh). The report also found that one plant would unlikely be built until 2040 at the earliest, while the bulk of the country’s coal-fired power plants are expected to retire in the early-to-mid 2030s. Energy experts, industry representatives, and environmentalists have been highly critical of the opposition’s proposal, with the former describing it as economic fantasy, while the latter have called it a political distraction designed to stall the transition to renewable energy and slow down action on climate change more broadly.
Solar credits – The Uttar Pradesh state government in India is aiming to reduce its emissions by 1.3 mln tonnes of CO2e annually while also reducing the government’s electricity expenses by shifting from coal-based power generation to renewables-based, particularly solar power. The solar projects will also help the government earn 35 mln carbon credits over the next 30 years, the Times of India reported.
AMERICAS
C-Quest CFTC stay – Federal charges pressed by the US Commodity Futures Trading Commission (CFTC) against former C-Quest Capital executives have been stayed as a result of a parallel case in progress filed by the DOJ and FBI. Judge Paul Oetken of the US Southern District of New York granted the stay on Monday. US attorneys proposed the stay given the overlap between the cases; that charges have been filed in the parallel criminal case; there is no prejudice to parties from the stay; there is strong public interest in preventing civil discovery rules from the CFTC case being used to improperly obtain discovery in the DOJ criminal case; and judicial economy is ensured by the requested stay.
Flat demand era ends – The era of flat power demand in the US is behind us, declared the power sector consulting firm Grid Strategies in its 2024 national load growth report. In the past two years, the five-year load growth forecast has increased by almost a factor of five from 23 GW to 128 GW driven by data centre growth and manufacturing. Forecasts for data centres anticipate growth between 65 GW and 90 GW, while indicators suggest that manufacturing demand will grow by 20 GW. Other sources like electrification could add another 20 GW. “If the updated forecast is correct, annual peak demand growth will average 3% per year over the next five years,” Grid Strategies wrote. “While 3% growth may seem small to some, it would mean six times the planning and construction of new generation and transmission capacity.”
Request for review – Steelmakers Cleveland-Cliffs and US Steel on Friday filed a joint motion for a rehearing on their request for a stay of the US EPA’s updated air toxics regulations, E&E News reported Monday. The request, filed in the US Court of Appeals for the District of Columbia Circuit, follows a three-judge panel’s 2-1 ruling in October to reject plaintiffs’ initial bid to freeze revisions to the national emission standards for hazardous air pollutants, finalised in April. Among reasons for now seeking en banc review, the lawyers for the two companies pointed to the US Supreme Court’s June decision to overturn the Chevron doctrine. The 40-year-old precedent held that judges should defer to the expertise of federal agencies like the EPA when laws passed by Congress are unclear. The majority on the panel “overlooked evidence that the EPA committed material errors, made omissions, and relied on misinterpretations” of the Clean Air Act that depended on the overruled Chevron deference to establish a “fatally flawed” final rule, read the motion.
EV reliability improves – While the reliability of EVs and plug-in hybrids is improving, they still have more problems compared to regular hybrid and conventional gas-powered vehicles, according to Consumer Reports’ annual reliability survey. EVs from the past three model years have had 42% more problems than gas-powered casts, according to Consumer Reports, which represents an improvement over last year’s 79% figure. Plug-in hybrids also improved from having 146% more problems than gas-powered vehicles last year to 70% more problems this year. Survey results are based on responses from 300,000 vehicle owners from 2022 to 2024 model years.
VOLUNTARY
Insetting consultation – Social Carbon has launched an insetting framework for public consultation, open until Jan. 31, 2025, which provides companies with clear guidance on how to conduct insetting projects in their supply chain. The framework is for Forest, Land, and Agriculture (FLAG) project types and is fully aligned with the GHG Protocol Scope 3. An accompanying webinar on Dec. 12 will provide more info, details here. The framework is designed to help companies make more credible claims on insetting practices in their supply chain.
New Member – Verra has become a member of the Singapore Sustainable Finance Association (SSFA), it announced Monday. SSFA is a hub that brings financial and real estate participants to address the region’s sustainability challenges. Verra said it would use its membership to share expertise with SSFA members and continue to advocate for integrity, transparency, and impact in carbon markets. The standard said its engagement would initially focus on three of the association’s priority workstreams: carbon markets, transition finance, and natural capital and biodiversity.
SCIENCE & TECH
Hottest year yet – 2024 is ‘certain’ to be the hottest year on record, according to the EU’s Copernicus Climate Change Service (C3S). With data for 11 months of 2024 now available, scientists said the average for the year is expected to be 1.60C, exceeding the record set in 2023 of 1.48C. This will mark the first year to have an average temperature of more than 1.5C above preindustrial levels. The C3S data showed that November was the 16th month in a 17-month period for which the average temperature exceeded 1.5C. Fossil fuel emissions must fall by 45% by 2030 to have a chance of limiting heating to 1.5C, yet the recent COP29 summit failed to reach an agreement on transitioning away from coal, oil, and gas. (the Guardian)
AND FINALLY…
Not so super – A new WWF report has revealed that UK supermarkets are failing to meet their environmental commitments, with major gaps in tackling deforestation, emissions, and food waste. The report highlights sluggish progress towards 2025 targets for deforestation-free supply chains. Currently, only 4.5% of soy and 0.3% of cocoa entering the UK food system is verified as deforestation-free, the report said. Supermarkets also face criticism for failing to address emissions across their supply chains, particularly from farming, and for over-reliance on livestock products. WWF notes that supermarkets are selling twice the amount of meat and eggs recommended by its Livewell diet, which aims to reduce food-related environmental impacts. Food waste has also increased in the retail and manufacturing sectors, further exacerbating resource use and emissions. WWF acknowledged signs of progress, such as improved transparency – 10 out of 11 major retailers reported data – and some alignment with science-based emissions targets. However, Iceland remains the only major supermarket not participating in the WWF initiative. The report calls on supermarkets to improve supply chain monitoring, reduce reliance on meat products, and for the UK government to enforce stricter regulations, including the promised ban on deforestation-linked imports. Without accelerated action, WWF warns that supermarkets will miss critical 2025 and 2030 climate targets, worsening the risks posed by climate change and biodiversity loss. (edie)
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