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TOP STORY
California discloses timeline to strengthen LCFS, as credit price rally proves short lived
California regulator ARB on Wednesday provided further details on its schedule for beginning a formal rulemaking to amend the Low Carbon Fuel Standard (LCFS), while credit prices plunged from a five-month high as traders digested the impact of the ARB hiking the programme’s carbon intensity (CI) reduction targets.
EMEA
Euro Markets: EUAs give up the week’s gains amid steady flow of selling as market awaits trade data
EUA prices dropped back below €100 on Wednesday, giving up the week-to-date’s gains amid steady selling as participants waited for updated Commitment of Traders data, while natural gas prices edged higher on speculation that demand for power generation may increase.
EU needs grid-balancing new gas power units in net zero shift, report finds
At least 19 GW of new flexible gas-fired power generation capacity and 50 GW of storage capacity will be needed by 2030 to stabilise the grid as the share of renewables increases in the Europe’s electricity mix, according to a study published on Wednesday.
EU saves billions in avoided gas costs thanks to renewables -report
The EU has avoided €12 billion in gas costs due to its rapid growth in wind and solar power generation in the year since Russia invaded Ukraine, according to a report published by an environmental think-tank on Wednesday.
Iberdrola posts 3% fall in ETS-covered emissions amid heavy Q4 gas drop-off
Spanish utility Iberdrola announced a marginal drop in 2022 emissions across its EU ETS-covered power generation portfolio in 2022 due to particularly heavy slump in Q4 output from its gas plants, a trend increasingly seen across European energy firms reporting full-year results.
AMERICAS
ANALYSIS: Clean fuel pricing bills advancing in Vermont would mark two potential firsts
Proposed legislation in Vermont could see the state adopt a first-in-the-nation clean heat standard that experts say would be a model for other jurisdictions to follow, while lawmakers also mull implementing the first transportation sector low-carbon fuel standard (LCFS) in the eastern US.
Carbon contracts for difference can help Canada compete with US renewable incentives -report
The Canadian government should offer a carbon contract for differences (CCfD) programme to help level the playing field with the numerous clean energy tax credits provided in the US Inflation Reduction Act (IRA), according to a working paper published Tuesday.
ASIA PACIFIC
Indonesia launches long-awaited carbon trading scheme for its coal-fired power sector
Indonesia’s Ministry of Energy and Mineral Resources on Wednesday launched its planned power sector carbon trading scheme, as part of its efforts to cut the country’s greenhouse gas emissions.
Asia’s domestic, international carbon markets entangle, but room for growth in both, panellists say
The development of international carbon markets is likely to run parallel with growth in both voluntary and compliance domestic carbon markets in Asia, with the various systems showing signs of convergence in some cases, a webinar on the future of carbon markets in Asia was told on Wednesday.
Carbon pricing regime key to Malaysia’s net zero, nature conservation goals -report
Malaysia’s approach to carbon pricing should integrate the twin objectives of reducing emissions from the energy sector with the protection of carbon sinks in forestry in order to enable the Southeast Asian economy to reach its net zero goals, a report from a local think-tank has recommended.
Australia Market Roundup: Issuance bumps up, Greens furious over govt gas approval
Issuance of Australian Carbon Credit Units (ACCUs) increased this week, a regulatory update showed, while the Greens party voiced its outrage over the government’s approval of a new gas development in Queensland.
South Korea’s SK Securities eyes early-stage offset projects
South Korea’s SK Securities is planning to further broaden its presence in the voluntary market as a project developer and provider of offsets for domestic buyers, following its recent purchase of international credits for carbon neutrality goals.
INTERNATIONAL
UAE project developers gear up for expansion pitch ahead of COP28
Months-old companies based in the United Arab Emirates (UAE) are aiming to bolster their own type of carbon crediting projects on the African continent, hoping to gain momentum for their initiatives as all eyes turn to their country’s role as the hosts of this year’s COP28 UN climate talks.
VOLUNTARY
Xpansiv to hold first carbon auction next month
Xpansiv will hold its first carbon credit auction early next month, the environmental commodities marketplace announced on Wednesday, fixing a date almost three months after launching the service.
Enhanced rock weathering developer promises scale will cut costs to around $100/tCO2
An enhanced rock weathering (ERW) carbon removals developer expects to cut production costs to around $100 tonnes of CO2 if its plans to scale come to fruition, a level close to current EU ETS values.
Africa’s largest carbon originator links with advisory firm on renewables projects
Africa’s largest project originator in the voluntary carbon market (VCM) has teamed up with a climate intermediary with an initial three-year plan that aims to generate 900,000 credits.
Ratings firm gives big downgrade to African REDD project
A carbon credit ratings agency has given a major downgrade to a previously highly-ranked Verra-certified REDD project in Africa amid signs of deforestation in the territory.
BIODIVERSITY (FREE TO READ)
Biodiversity will require complete rethink in crediting framework, developers say
The fledgling biodiversity market will need a crediting framework that departs completely from carbon, according to two project developers involved.
Philippines signs carbon, biodiversity MoU with major infrastructure firm
The Philippines’ Department of Environment and Natural Resources (DENR) has signed an MoU with a large domestic infrastructure company to reduce carbon emissions and manage biodiversity through a 1,800-hectare reforestation project.
UK publishes details on mandatory nature positive planning policy, biodiversity credit use
The British government has published a response to its consultation on a nature and biodiversity positivity regulation that will help to inform a final biodiversity plan for land use and development that includes details on how credits can incentivise support for nature protection.
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CONFERENCES
Argus Asia Carbon Conference – Mar. 14-16, Sarawak, Malaysia: Organised by Argus Media in collaboration with the Ministry of Energy and Environmental Sustainability Sarawak (MEESty), and with host sponsor Samling Group, the Asia Carbon Conference will take place on Mar. 14-16 in Kuching, Sarawak, Malaysia. Join us for the first industry leadership conference for carbon offsetting and trading in Asia to get ahead of your competitors in a rapidly growing global market. This is your opportunity to interact, learn, and network, for the answers you need on fundamental questions about carbon offsets: how do they work, and how might they impact Asia? Find out more
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.
European Climate Summit (ECS 2023) – Mar. 28-30, Lisbon: Registration for the 5th edition of the European Climate Summit organised by IETA and partners is open. The ECS brings together leading private sector experts and policymakers from both the carbon and energy world, to analyse and discuss the current developments and pressing challenges. The summit provides a discussion and networking forum for policymakers, business leaders, and innovators involved in building, scaling, and collaborating on markets for net zero. The event will feature high-level plenaries, cross-cutting deep dives, interactive side events, and quality networking opportunities. Registration here
ANNOUNCEMENT
Call for Expression of Interest to join the Climate Action Data Trust User Forum. Climate Action Data Trust has launched a Call for Expression of Interest to join the CAD Trust User Forum. The Initiative is looking for a variety of stakeholders across the carbon market value chain, from both the public and private sector. The purpose of the User Forum is to act as a market sounding board for the Council and the Technical Committee on business, policy, and technical matters. CAD Trust is a decentralised meta data platform that links, aggregates and harmonises all major carbon registry data to enhance transparent accounting in line with Article 6 of the Paris Agreement. Deadline for applications extended to Feb. 28, 2023.
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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
EMEA
Share the burden – The German government is looking to acquire shares in renewable energy firms and provide support to wind turbine and solar panel manufacturers in order to encourage their production on home soil, EurActiv reports. Germany used to house a fledgling industrial landscape of solar panel and wind turbine makers, but as domestic financial support dried up so did the industry, the article continued. But, home-grown production capacity is once again becoming a priority following Russia’s attack on Ukraine and the sudden interruption of cheap gas flows. After a public consultation was held from April 2022 to Feb. 2023, the German government has produced a three-step plan, that will help firms invest by creating a so-called “transformation fund”, create mechanisms to help de-risk wind and grid expansion, and launch a new round of EU-approved innovative funding schemes.
Competition for places – The UK’s grid operator will reform the way power generators apply to connect to the system to make it easier and faster to ramp up renewable capacity, Bloomberg reports. The current rules were designed two decades ago, when applications came infrequently and mainly from large, fossil fuel-powered plants. But there are now bottlenecks to bring today’s smaller-scale wind, solar, and battery projects off the ground as they compete for limited grid space and officials struggle to keep up with applications. The UK National Grid’s Electricity System Operator found that as little as 30% of projects that apply for a grid application actually get built, a hindrance to adding extra renewable capacity.
Pressure on banks – French NGO’s including the local branch of Friends of the Earth and Oxfam France are taking BNP Paribas to court in what they say is the world’s first climate lawsuit against a commercial bank. The groups, which had given BNP Paribas formal notice to comply with its French government due diligence obligations in October, sued BNP Paribas over its support to fossil fuels and for its substantial contribution to climate change as Europe’s largest and fifth worldwide funder of fossil fuel expansion. The NGOs urged the bank to immediately stop financing this expansion and to adopt an oil and gas exit plan. Meanwhile, fellow campaign groups 350.org and members of the #StopEACOP coalition, joined by dozens of collectives and NGOs around the world, held a coordinated global day of action asking Standard Bank, Sumitomo Mitsui Banking Corporation (SMBC) and Standard Chartered to step away from the East African Crude Oil Pipeline. They demanded that these banks withdraw from and publicly refuse to finance the pipeline, emphasising the project’s non-compliance with the Equator Principles (EPs), to which all three financiers are signatories.
Steel shutdown – Unions have warned on the future of UK steelmaking after British Steel announced it will shut its coking ovens in Scunthorpe and cut up to 260 jobs. The firm owned by China’s Jingye blamed an “unprecedented” rise in energy costs and demands to be greener. The closure of the ovens at its Scunthorpe headquarters, which means British Steel will import coke, has been seen as a concerning indicator about the health and future of the UK steel industry. The government said the decision by British Steel was “very disappointing” while negotiations were ongoing with the sector over funding support, the BBC reported. With annual CO2 output exceeding 4 mln tonnes, the steelworks is one of the biggest emitters in the UK ETS, though the vast majority of emissions from such integrated works come from the blast furnace rather than coking ovens.
Pump dump – The UK government’s flagship green heating scheme has been described as “seriously failing” by a inquiry from the Parliament’s upper chamber, the BBC reports. The Boiler Upgrade Scheme grants households £5,000 to help switch from a gas boiler to a low-carbon heat pump. On Wednesday, the House of Lords Climate Change Committee said grant take-up is so low the national target for green heating is “very unlikely to be met”. The government responded by saying it would launch a marketing campaign to make people more aware of the scheme.
ASIA PACIFIC
Biomethane breakthrough – Mitsui O.S.K. Lines (MOL) and Air Water Inc. announced the signing of Memorandum of Understanding (MoU) to jointly study the trial use of liquefied biomethane (LBM) derived from cattle manure, in LNG fuelled vessels, MOL stated in a press release. This joint study will be conducted as part of an LBM technology research and development program approved by Japan’s Ministry of the Environment and promoted by Air Water. LBM is produced from cattle manure in the Tokachi region of Hokkaido by Air Water. The two companies will confirm that LBM can be transported, supplied, and used without problems using existing shore and onboard equipment. The goal is to use LBM on the MOL Group’s coastal LNG fueled vessel in the first half of FY 2023. This will be the first use of LBM as marine fuel in Japan.
Task force – China Carbon Neutral Development Group has established a special expert team in response to the EU’s Carbon Border Adjustment Mechanism (CBAM), which will come into effect in October, it said in a statement on Tuesday. The task force will conduct a study on international relations, offsetting measures, and related policies to help Chinese companies address possible challenges brought by the carbon border tax, it said. The Hong Kong-listed company’s latest move came after it last year signed an MoU to supply a variety of voluntary offset credits to a new carbon fund managed from Singapore.
AMERICAS
24/7 renewables – PJM Environmental Information Services, a subsidiary of PJM Interconnection which operates the wholesale power market in the eastern US, will begin trading energy certificates with hourly time stamps on its existing Generation Attribute Tracking System in March, Utility Dive reported Tuesday. The new offering is a response to requests from customers, who are increasingly interested in more granular generation data, according to Ken Schuyler, president of PJM Environmental Information Services. Growing in 24/7 renewable energy goals has prompted the creation of several related services in recent months. Although primarily of interest to select voluntary energy buyers at the moment, Schuyler said he believed demand for the time-stamped emissions data would rise as efforts continue to decarbonise the electric grid.
Restoration relief – The US Department of Agriculture (UDSA) announced on Tuesday it will invest more than $48.6 mln this year through the Joint Chiefs’ Landscape Restoration Partnership for projects that mitigate wildfire risk, improve water quality, restore forest ecosystems, and ultimately contribute to USDA’s efforts to combat climate change. This year, the USDA Forest Service and Natural Resources Conservation Service (NRCS) will invest in projects, including 14 new projects, bringing together agricultural producers, forest landowners, and National Forest System lands to improve forest health using available Farm Bill conservation programs and other authorities.
VOLUNTARY
Seed funding – Kita, a carbon insurer, announced on Wednesday a highly over-subscribed £4 mln seed funding round led by Octopus Ventures, alongside existing investors Insurtech Gateway, Carbon13, and Climate VC, and new investors Chaucer Group and Hartree Partners. Kita is the carbon insurance specialist; helping reduce risk in carbon credit transactions with insurance products that safeguard the quality and performance of carbon purchases. The goal is to enable more upfront financing so carbon removal solutions can access greater flows of consistent capital and scale their impact faster.
A fresh look – Carbon removals marketplace platform Patch has teamed up with consulting firm EcoEngineers to ensure the integrity of new carbon removal techniques are introduced into the market, EcoEngineers said in a statement on its website. EcoEngineers’ due diligence and science-based project evaluations and Patch’s digital marketplace, combined, offer a powerful accelerator of innovation in the carbon market, said Shashi Menon, CEO, EcoEngineers. The advisory firm currently is reviewing the science as well as developing measurement, reporting and verification (MRV) approaches to quantify the greenhouse gas (GHG) emission reduction for companies introducing new and emerging technologies.
ICE’s climate risk analysis – Intercontinental Exchange, a global provider of data, technology, and market infrastructure, on Tuesday announced an agreement with Dun & Bradstreet, a global provider of business decisioning data and analytics, to leverage its global supply chain and corporate location data to expand ICE’s climate risk offering globally. By leveraging Dun & Bradstreet’s supplier network and location data, ICE plans to expand its geospatial data and intelligence platform globally, which can enable multi-asset class climate risk analysis for private and public companies, sovereigns, and real estate portfolios around the world. With the expansion, ICE will be able to provide climate metrics on more than four million unique fixed income securities globally. Dun & Bradstreet’s supplier network provides transparency into over 68 mln connections between clients and their suppliers, all the way up to the tenth link on the chain. Its location data on hundreds of millions of active companies, can enable organisations around the world to standardise, verify, and extend the necessary business data to help manage risk and maximise opportunity across the enterprise. By offering one common data foundation across the enterprise, Dun & Bradstreet helps businesses to provide more transparency in their reporting for investors and regulators.
AND FINALLY…
Unequal outputs – The world’s top 1% of emitters produce over 1,000 times more CO2 than the bottom 1%, the IEA said in a commentary, adding that CO2 emissions are highly unequal across income groups and regions. The agency said that emissions vary across countries and across generations, but even more so across income groups. It stated that in 2021, the average North American emitted 11 times more energy-related CO2 than the average African. Yet variations across income groups are even more significant. The top 1% of emitters globally each had carbon footprints of over 50 tonnes of CO2 in 2021, more than 1,000 times greater than those of the bottom 1% of emitters. Meanwhile, the global average energy-related carbon footprint is around 4.7 tonnes of CO2 per person – the equivalent of taking two round-trip flights between Singapore and New York, or of driving an average SUV for 18 months. These large contrasts reflect great differences in income and wealth, and in lifestyles and consumption patterns.
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