Newsletters > CP Daily: Tuesday February 7, 2023

CP Daily: Tuesday February 7, 2023

Published 01:43 on February 8, 2023  /  Last updated at 01:43 on February 8, 2023  / /  Newsletters

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

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TOP STORY

Global carbon markets post 14% increase in value in 2022, despite 21% drop in volume -analysts

Global carbon markets expanded for a fourth straight year in 2022, reaching €865 billion ($924 bln) in value despite a near-20% drop in the number of transactions as prices in the main markets reached their highest ever levels, according to analysts in a report published on Tuesday.

VOLUNTARY

UNDP, Switzerland defend rice farming methodology amid Verra decision to halt use

The UN’s Development Programme and Switzerland have defended the rice farming methodology behind the first authorised emissions transfer under the Paris Agreement, with a senior official emphasising key differences to the Verra protocol that was halted last week over integrity concerns.

US reforestation developer looks to branch out globally

The largest reforestation project developer in the US, soon to auction carbon credits on the ICE exchange, is branching out globally with a new platform to advertise its expertise and attract new project developers into the nature-based removal market.

Blockchain marketplace lines up to sell tokenised removal credits through two-way bridge

A blockchain carbon marketplace which secured a deal last month to supply credits worth up to €50 mln has integrated its systems with a standards body as it gears up to sell tokenised carbon removal credits for the first time.

Technology company, audit firm form partnership for on-site carbon credit verification

A carbon credit technology firm and litigation support company on Tuesday announced a strategic partnership that will perform “boots-on-the-ground” checks and other auditing services to ensure the integrity of offset projects.

Global trade association releases standardised carbon credit transaction agreements, launches new working group

The International Emissions Trading Association (IETA) on Tuesday announced the publication of standardised purchase agreements for bilateral transactions in primary and secondary carbon markets, and launched a new working group chaired by industry veterans in an effort to bring clarity to the voluntary carbon market (VCM).

EMEA

ANALYSIS: The EU’s swerve from Russia brings renewables goals within reach

A massive ramp-up in EU renewable power build-out in the wake of Russia’s invasion of Ukraine means the bloc is likely to achieve even the most ambitious 2030 clean power target being considered by legislators, while also easing carbon costs for emitters.

Drop the BEIS: UK shifts responsibility for climate policy in ministerial reshuffle

UK Prime Minister Rishi Sunak on Tuesday announced the disbanding of the government’s Department of Business, Energy and Industrial Strategy (BEIS) and its replacement by three new departments, as part of a cabinet reshuffle that shifts responsibility for climate action.

Euro Markets: EUAs drift lower but remain above €90 as market eyes Parliament reform vote

EUA prices ended Tuesday marginally lower amid a drop in activity ahead of a key European Parliament market reform vote later this week, while energy prices continued to decline as the gas supply outlook suggested storages will be fully replenished in the summer.

UAE signs forest carbon agreements with two African nations

The United Arab Emirates on Tuesday signed deals with two separate African countries to develop forest conservation projects on the continent and earn carbon credits.

INTERNATIONAL

ANALYSIS: Fast-growing SLL market sees calls for greater transparency amid greenwashing concerns

The sustainability-linked loan (SLL) market has emerged rapidly on the green scene in recent years as an increasing number of banks and corporations use such loans as part of their decarbonisation strategies, prompting calls to enhance transparency and industry efforts to counter accusations of greenwashing.

BP waters down 2030 climate targets as it records record fossil profits

Oil and gas major BP reported record annual profits in quarterly results published on Tuesday, as it announced it would also water down its 2030 climate targets relating to reducing fossil output.

ASIA PACIFIC

China updates emissions data reporting guidelines for ETS-regulated power plants

China’s environment ministry has circulated a set of updated management guidelines for emissions reports submitted by power generation facilities under the national ETS, asking regional authorities to enhance day-to-day monitoring of power companies’ data reporting activities as regulators seek to avoid further carbon market data fraud.

Australia’s Coalition party says will oppose Safeguard Mechanism legislation

Australia’s Coalition opposition party has formally agreed to oppose the government’s reformed Safeguard Mechanism policy, meaning Labor will be forced to seek crossbench support in the Senate to pass the legislation.

AMERICAS

Costa Rica sets out blue carbon strategy for achieving Paris goals

The Costa Rican government has launched on Tuesday a national blue carbon strategy that it says will help the country meet its Paris Agreement climate goals, and reportedly will seek to develop guidance and criteria for registering projects in the next several years.

BIODIVERSITY (FREE TO READ)

Major investor sets out biodiversity, climate expectations for portfolio firms

Aviva Investors has named nature loss and climate change as two of its three main focus areas for 2023, and has written a letter to the 1,600 companies it has invested in, outlining the actions it expects them to take on these issues.

Nature intelligence firm eyes expansion after closing £2.5-mln seed round

UK-based nature platform provider Natcap will seek to accelerate product development and commercialise its technologies after successfully closing a £2.5 million seed round.

Bottlenecks hamper access to EU funds for biodiversity in Eastern nations -report

Although the EU biodiversity strategy recognises the importance of funding in addressing the biodiversity crisis, a number of significant barriers and bottlenecks at the national level could prevent the efficient use of available financing for nature, according to a new report published on Tuesday.

COMMENT

Six questions to resolve in order for carbon markets to deliver more for nature

Carbon markets can be an incredibly important tool to finance nature-based solutions at the scale required to be meaningful on a global scale, however, there are some serious questions which must be resolved as soon as possible if verified (not just voluntary) carbon markets are to deliver their full potential for nature, writes Ed Hewitt of Respira.

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CONFERENCE

North American Carbon World (NACW) 2023 – Mar. 21-23, Anaheim: For 20 years, the NACW conference has been the place for carbon professionals working in North American carbon markets and climate policy to learn, collaborate, and network. Taking place Mar. 21-23 in Anaheim, California, NACW 2023 will dive into new policies and developments that will shape and scale carbon markets and climate solutions with integrity, ambition, and equity. Register now to gain actionable insights for bold climate solutions and participate in premier networking opportunities with an active and engaged audience to strengthen your organization’s strategy for navigating the carbon landscape.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Carbon Pulse has teamed up with CME Group to provide its clients with regular updates on the global carbon markets. Check out these briefs for the latest insights on pressing trends and events impacting markets, published every other week. Registration required

INTERNATIONAL

Sustainable sovereign debt – A coalition of asset managers and owners representing $5 trillion in assets is launching a framework assessing the low-carbon transition progress of governments, ESG Clarity reported Tuesday. The Assessing Sovereign Climate-related Opportunities and Risks (Ascor) project hopes to get asset managers talking with sovereign debt issuers in order to facilitate more net zero aligned issuance, as well as provide a one-stop shop framework for issuers to use. “Unlike other asset classes such as equities or corporate credit, there is currently no internationally agreed framework for assessing the climate-related risks and opportunities associated with sovereign debt instruments,” the consultation report for the framework said. The aim is to make it easier for issuers to demonstrate their progress on climate change to investors over time, thereby giving investors the relevant information to integrate into decision-making to reduce their exposure to climate risk and increase their financing of climate opportunities.

Corporate sustainability solutions – MSCI Inc., a leading provider of critical decision support tools and services for the global investment community, on Tuesday announced the launch of MSCI Corporate Sustainability Insights – a solution designed to increase corporate sustainability executives’ understanding of the ESG and climate challenges and opportunities facing their companies. MSCI Corporate Sustainability Insights gives executives at companies tracked by MSCI ESG Research the ability to measure and compare their ESG and climate data versus peers, while also identifying potential disclosure gaps through intuitive charts, graphs, and maps.

EMEA

“Unavoidable” – The EU may have to pull out of the Energy Charter Treaty (ECT), according to a European Commission document circulated to member countries and seen by POLITICO that said a withdrawal “appears to be unavoidable”. The document includes a note that this view “has not been adopted or endorsed by the European Commission” and that it should not be “in any circumstances” regarded as an official position of the Commission. “It is clear that, in the current setup, the ECT cannot be modernised,” the Commission argues in the document, adding that means the pact “is not in line with the EU policy on investment protection or the EU Green Deal.” There would then be three possible courses of action: a coordinated withdrawal from the treaty, a partial withdrawal and a modernised ECT for the remaining countries, or a Council majority in favoir of modernising the treaty. The Commission said the first option was the most straightforward. Read Carbon Pulse’s earlier reporting on how an EU withdrawal appeared inevitable after EU countries failed to find an agreement around the reform and many of them quit.

Greek aid – A scheme worth €1.36 bln will compensate energy-intensive companies in Greece for indirect emission costs under the ETS, the EU Commission announced. The measure, aimed at reducing the risk of carbon leakage, will cover part of the higher electricity prices incurred between 2021 and 2030. The compensation will be granted to eligible companies through a partial refund, with the final payment in 2031. The maximum aid amount per beneficiary will be equal to 75% of the indirect emission costs incurred. However, in some instances, the maximum aid amount can be higher to limit the remaining indirect emission costs incurred to 1.5% of the company’s gross value added. The aid amount is calculated based on electricity consumption efficiency benchmarks, to ensure that the beneficiaries are encouraged to save energy. In order to qualify for compensation, beneficiaries will have to either implement certain energy audit recommendations, cover at least 30% of their electricity consumption with renewable energy sources, or invest at least 50% of the aid amount in projects leading to substantial reductions of the installation’s greenhouse gas emissions. Beneficiaries will have to comply with one of those obligations within three years from the granting of the aid. 

EaSSE does it – The UK’s SSE and Norway’s Equinor are investigating the prospect of adding an additional 1.32 GW to the 3.6 GW Dogger Bank offshore wind farm project in the UK, which could power the grid or produce hydrogen. The world’s largest offshore wind farm, is being built in three phases of equal size, A, B and C, located off the UK’s eastern coast, and the firms are considering adding a fourth, Renewables Now reports.

Hy flyers – ZeroAvia, which is developing the first zero-emissions power plant for commercial aviation, has announced that it has signed a collaboration with fuel supplier Shell and Rotterdam The Hague Airport (RTM), Airways reported Tuesday. The agreement promises to deliver hydrogen-powered commercial passenger services by 2025, with demonstration flights within a 250-mile radius of RTM. To support these flights, the interested parties will also work together to develop a concept of hydrogen operations at airports. This includes storage and dispensing facilities for the hydrogen, with the plan to decarbonise the whole airport ecosystem. ZeroAvia, whose investors include British Airways and Alaska Airlines, recently made history, flying the world’s largest aircraft powered with hydrogen-electric ZA600 engine.

Clean computing – ZeroPoint Technologies announced on Tuesday that it closed a €3.2 mln seed round, from climate tech investor Climentum Capital, Nordic VC Industrifonden, Chalmers Ventures, and present shareholders, to finance the company in 2023 and beyond, Design And Reuse reported on the same day. ZeroPoint Technologies provides a groundbreaking technology that can reduce the energy consumption of data centres by more than 25%. The new capital will be used to grow and expand the company’s international presence and take new products to market. ZeroPoint’s technology can drastically increase the energy efficiency of servers, delivering up to 50% more performance per watt by removing unnecessary information from the memory. This means that data centres can maximise performance and reduce energy consumption.

Survey says – The European Commission’s DG Climate Action has launched a market-testing survey to consult a wide range of stakeholders on key features of the future Innovation Fund and to establish an appropriate portfolio of support instruments that will best meet the market needs. The survey comes as the EU is defining its ambitions towards a Net Zero Industrial Plan, where the Innovation Fund will also contribute, as well as delivering under the RePower EU Plan and the Hydrogen Bank. The questions in the survey, cover both the current calls for proposals and the new auctions mechanism. The Commission is interested in identifying the market needs for the next period of the Innovation Fund operation, in terms of project pipeline as well as expected type and size of support and sectoral or thematic priorities to be established. With this survey the Commission will have an overview of the types of funding that different industrial sectors and market players will require to close the green premium gap and decarbonise as fast as possible.  This will in turn allow the Commission to establish an appropriate portfolio of support instruments under the EU ETS Innovation Fund. Project developers, professional/trade/business associations representing companies that could consider applying for funding from the EU ETS Innovation Fund in the current decade are especially targeted by the survey. Financial entities that can provide lending, equity or other type of financial support to projects applying to the Innovation Fund are also encouraged to respond. Views of EU Member States (and Iceland and Norway) academia/think-thanks and other stakeholders are also welcome.

AMERICAS

Foundering fossil-fueled power – This year, operators plan to retire 15.6 GWs of electric-generating capacity in the US, mostly natural gas-fired (6.2 GW) and coal-fired (8.9 GW) power plants, according to a report Tuesday by the US Energy Information Administration, citing the agency’s Preliminary Monthly Electric Generator Inventory. This year, power plant owners and operators plan to retire 8.9 GW of coal-fired capacity, which is 4.5% of the total coal-fired capacity at the start of the year. This year, 6.2 GW of US natural gas-fired capacity is scheduled to retire, representing 1.3% of the operating natural gas fleet as of January.

Gavin on gas – California Gov. Gavin Newsom (D) on Monday sent a letter to the US Federal Energy Regulatory Commission (FERC), calling on the body to investigate the recent natural gas price spike affecting the Western US. The governor requested that the agency “immediately focus its investigatory resources on assessing whether market manipulation, anticompetitive behaviour, or other anomalous activities are driving these ongoing elevated prices in the western gas markets.” The California Public Utilities Commission and California Energy Commission on Tuesday also held an en banc hearing to examine the possible drivers behind the natural gas price spikes and explore potential state actions that can be taken.

Radio attacks – Canada’s federal Conservative party launched on Monday a radio ad campaign in Atlantic Canada taking aim at the Liberal government’s carbon tax, Global News reported. The 30-second English language radio spot will air later in northern Ontario and northern BC, while a French-language radio spot has also been produced according to party sources. The Conservative radio spots are the first paid ads from any party to appear on legacy media platforms since Pierre Poilievre was elected leader of the Conservatives last September, and are voiced by Poilievre targeting the planned increase in the federal government’s price on carbon pollution. The Conservatives hold eight of the 32 seats in the four Atlantic Canada provinces of New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador, the NDP party hold none, while the Liberals hold 24. In northern Ontario, the Conservatives have one seat compared to NDP’s two and the Liberals’ six, while in the northern BC ridings the Conservatives hold two over one NDP seat. No other party is believed to have presently purchased paid advertising on television, radio, in newspapers, or in other traditional media outlets, the report noted. All parties, though, engage in paid advertising on social media channels.

ASIA PACIFIC

CCS Oz – Chevron Australia will contribute a combined A$38 mln to CCS research projects in Western Australia and Victoria, advancing knowledge of the critical emissions technology for a lower carbon future. Of the total contribution, A$22 mln has been committed to the Barrow Dampier CCS Regional Study, which is led by global technology company SLB, and supports a three-dimensional seismic and storage assessment to identify new CCS opportunities in the Carnarvon basin, offshore Western Australia. Chevron Australia has also committed A$16 mln to support development of new infrastructure at the Otway International Test Centre in Victoria. The project, which is managed by Australian carbon capture and storage research organisation, CO2CRC, will enable testing of carbon dioxide migration and validation of new modelling techniques that could improve storage processes in future CCS projects (Chevron press release).

Blend it – DNV has been selected by South Korea’s state-owned natural gas importer and transporter Korea Gas Corporation (KOGAS) to assess the viability of blending hydrogen into the nation’s gas transmission network, the assurance provider stated in a press release. KOGAS is the world’s largest importer of LNG and transports the regasified fuel nationwide through its extensive high-pressure gas pipeline network. The two-year project will assess the scope for blending hydrogen with natural gas in KOGAS’ 5,000- kilometer-long domestic transmission network. More specifically, DNV will assess the pipeline network’s suitability for hydrogen blending, provide technical and advisory support to KOGAS’s hydrogen blending test project on Jeju Island and provide support to KOGAS in addressing the requirements of South Korea’s regulatory authorities in overseeing hydrogen’s integration and uptake.

Baht for batteries – The Thai government has committed 24 bln baht ($735,000) to subsidise the manufacture of locally produced electric vehicle battery cells, The Nation reports. The subsidy is part of the country’s national EV policy, which aims to reduce excise tax for EV battery-makers from 8% to 1%. The incentives to encourage domestic production of EV battery cells are aimed at creating a complete manufacturing base for EVs in Thailand, according to Energy Minister Supattanapong Punmeechaow. The country’s EV policy committee will offer subsidies of between 400-600 baht per kilowatt-hour to producers of EV batteries with a capacity below 8 GWh, and 600-800 baht per kilowatt-hour to manufacturers with a capacity above 8 GWh. Due to the limited budget, subsidies will be distributed on a first-come, first-serve basis, according to Supattanapong. The minister added that many leading battery manufacturers were interested in setting up shop in Thailand, thanks to surging domestic demand for EVs, and massive investment from European and Chinese EV makers. The government has set a target of making 30% of total car production EVs by 2030.

VOLUNTARY

Not zero – Twenty-five of the biggest companies in the world including Nestle, Carrefour, Unilever, and E.ON made corporate net zero pledges that will only deliver an average of 40% reduction in emissions, according to a report from the NewClimate Institute and Carbon Market Watch released Tuesday. The net zero pledges will only reach that 40% reduction decades from now, the report said. Omitting data like Scope 3 emissions and using start dates when the companies’ emissions were higher are in part what lead to the misleading claims. (Energy Monitor)

You go, Cogo – Global fintech company Cogo on Tuesday announced that its carbon footprint management software is now listed on AWS Marketplace, a digital catalogue with thousands of software listings from independent software vendors to find, test, buy, and deploy software that runs on Amazon Web Services (AWS). The listing will give more than 325,000 active AWS customers around the world access to Cogo’s cloud-based carbon footprint technology that enables individuals and businesses to measure, understand, and reduce their impact on the climate, the company said in a press release.

AND FINALLY…

Not the time, nor the place – Australia’s opposition energy spokesperson, Ted O’Brien, has been criticised of “bizarre and disrespectful behaviour” for filming videos discussing Australia’s potential for nuclear energy at the site of the Hiroshima atomic bomb blast, and Fukushima power plant in Japan, the Guardian reports. O’Brien recently posted two videos from a trip to Japan as part of what he said was an in-depth analysis into the possibility of including advanced nuclear technology in Australia’s future energy mix. Australia has had multiple inquiries under into the possibility of nuclear energy in its country, the latest of which found it would be the most costly and time-consuming form of energy Australia could commit to. In one of the videos, O’Brien visits Hiroshima’s Peace Park overlooking the site where some 140,000 people were estimated to have died following an atomic bomb being dropped by American forces in World War 2. “Despite actually having two atomic bombs land on it, it’s firing on all cylinders on nuclear energy,” O’Brien said in the video. Labor senator Catryna Bilyk, chair of the Australia-Japan Parliamentary Friendship Group said “using the site of the deaths of tens of thousands of people to cynically push a domestic ideological obsession is bizarre and frankly disrespectful”. A spokesperson for O’Brien said he had sought to be respectful, and his trip was privately funded to study the technology.

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