Newsletters > CP Daily: Monday March 6, 2023

CP Daily: Monday March 6, 2023

Published 02:58 on March 7, 2023  /  Last updated at 08:08 on March 7, 2023  / /  Newsletters

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

Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here

TOP STORY

EXCLUSIVE: Carbon credit originator says achieves 1-bln tonne project pipeline, targets 50 Mt in trade this year

A US-headquartered carbon offset trader and originator has secured a project pipeline that exceeds 1 billion tonnes, with the firm also aiming to transact over 50 million VERs this year separate from its own initiatives, company executives told Carbon Pulse.

ASIA PACIFIC

Japan, partners leave room for fossil fuels in regional energy transition agreement

Japan signed a pact with ten Asia-Pacific countries at a regional summit of ministers held in Tokyo over the weekend to pursue “practical pathways” to achieve decarbonisation of their economies, embracing a broad-brush approach that will leave a role for abated fossil fuels in their energy transition strategies.

Safeguard Mechanism needs stricter emissions reporting requirements, according to new analysis

A report on the Australian government’s strengthened Safeguard Mechanism has recommended building more frequent emissions reporting into the scheme, which it argues would allow it to respond to unexpected increases in emissions in the coming years.

China state planner backs the use of coal, weak wording on carbon markets

China’s state planner underlined the critical role of coal in the country’s pathway towards energy transition while applying weak language on the development of carbon markets in its annual work plan released over the weekend, that has left observers bewildered.

EMEA

Cote d’Ivoire teams up with developers to explore potential for large-scale reforestation  

Cote d’Ivoire has signed an MOU with a local and a foreign developer to explore the development of reforestation carbon credit projects in the country.

Euro Markets: EUAs consolidate after early gains as market eyes March contract expiry

EUA prices consolidated on Monday after four successive daily declines last week had driven the market down by as much as 9.2%, as traders began to look ahead to the expiry of March futures and options contracts, while energy prices wilted for a sixth day as renewables output was forecast to increase.

UK’s largest landowner launches market engagement survey on seabed CCUS

The UK’s largest landowner has launched the first round of formal engagement with industry stakeholders on Carbon Capture Utilisation and Storage (CCUS) technology, issuing a survey on the market requirements specifically for future seabed and subsurface carbon store development.

AMERICAS

British Columbia to implement output-based pricing system for large emitters in 2024

The British Columbia government has announced it will next year introduce an output-based pricing system (OBPS) for large stationary sources of GHG emissions, allowing industries an alternative to regulation by the Canadian province’s economy-wide carbon tax.

RGGI Market: RGA prices near 2-mth low despite programme review news, high auction prediction

RGGI Allowance (RGA) prices last week ended lower, continuing a month-long stretch of mostly losses and defying bullish drivers from an upcoming programme review as well as recent analyst projections for a steep Q1 auction settlement this week.

VOLUNTARY

VCM Report: Liquidity perks up but prices generally drop lower

Liquidity picked up in the voluntary carbon market as March started, but prices generally slipped lower amid the weight of surplus credits.

US firm secures conditional approval for environmental credits registry and exchange in the Bahamas

A Houston-based integrated environmental asset validation, blockchain registry, and exchange firm has announced securing conditional approval for the launch of an environmental credits digital platform operating out of the Bahamas, and has already listed millions of carbon offsets from avoided oil extraction.

BIODIVERSITY (FREE TO READ)

Nations strike crucial ocean protection agreement

After a 36-hour marathon session to conclude negotiations in New York, UN member states on Saturday evening agreed to a treaty that will pave the way for protecting 30% of the world’s oceans.

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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

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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

Jab step-by-step – Sultan al-Jaber, boss of UAE national oil firm ADNOC and president-designate of the year-end COP28 UN climate summit to be held in the nation, has urged the energy industry to join the fight against climate change. “Energy leaders in this room have the knowledge, experience, expertise, and the resources needed to address the dual challenge of driving sustainable progress while holding back emissions,” Jaber said in his speech at the CERAWeek energy conference in Houston, to an audience that included OPEC Secretary General Haitham Al Ghais and US climate envoy John Kerry. “Alongside all industries, the oil and gas needs to up its game, do more, and do it faster,” Jaber said, emphasising that he would “consult and convene” with all members of the energy world. “Let’s remember that progress is made through partnership not polarisation.” (Reuters)

Methane bombs – Satellite data analysed by the company Kayrros has identified 1,005 super-emitter methane events in 2022, of which 559 were from oil and gas fields, 105 from coalmines, and 340 from waste sites, such as landfills. The worst single leak spewed the pollution at a rate equivalent to 67 mln running cars, the Guardian reported. Separate data also reveals 55 “methane bombs” around the world, including three in the US – fossil fuel extraction sites where gas leaks alone from future production would release levels of methane equivalent to 30 years of all US GHG emissions.

EMEA

Deutsch mark these words – Extreme weather caused by climate change could cost Germany €280-900 bln in cumulative economic damage by mid-century, depending on the extent of global warming., according to a study economic research companies Prognos and GWS and Germany’s Institute for Ecological Economic Research. The publication comes as Berlin works on a climate adaptation strategy soon to be presented by the environment ministry and amid debates in the ruling coalition on how Germany could cut GHG emissions in challenging sectors such as transportation and construction to become carbon neutral by 2045. (Reuters)

Tricky treaty – Former UK energy minister and the politician who was charged with reviewing its net zero strategy has called for the country to leave the Energy Charter Treaty in an opinion piece published in the Financial Times. Chris Skidmore said that the UK needs to respond to increasing global competition on net zero with a clearer approach to green trade. There would be no better place to start than by acting on the outdated treaty, he wrote, which is a threat to the UK’s net zero ambitions at home and its credibility abroad. Several EU nations have already pulled out of the treaty with its critics arguing that it slows the energy transition and supports fossil suppliers.

Transition, we promise – The boss of oil major’s BP’s US business insisted that the company is sticking with its promised transition away from fossil fuels even though it plans an aggressive oil output increase in the country and is slowing down its planned production cuts elsewhere. BP announced a scaling back of its climate goals last month as it unveiled record annual profits in 2022. The company’s target to slash oil output by 40% by 2030 was reduced to 25%. The move prompted dismay among some climate campaigners but sent share prices sharply higher as investors welcomed what some thought was a renewed focus on higher margin fossil fuels. (Financial Times)

Hydrogen uptick – A draft update of the German government’s 2020 national hydrogen strategy assumes a higher demand for the fuel than three years ago, when the country launched its first national strategy for the fuel, according to an article in the Tagesspiegel Background energy policy newsletter. Germany will need 95-130 TWh of hydrogen— including derivatives such as ammonia, methanol or synthetic fuels — of which 55 TWh would be made from natural gas and 40-75 TWh with renewable electricity (“green” hydrogen). The initial 2020 strategy assumed a demand of 90-110 TWh. Some 50-70% would be covered through imports, and the government plans to develop an import strategy this year, according to the draft. The government coalition previously agreed to double the target electrolysis capacity in 2030 to 10 GW, which will now be incorporated into the strategy while a green hydrogen funding strategy is in the works for the second half of this decade. (Clean Energy Wire)

Delete diplomacy – EU countries intend to push for a global phasing out of fossil fuels among their climate diplomacy priorities this year, which the bloc hopes to approve this week after rewriting a contentious section on nuclear energy. The draft text aims to set out the EU’s diplomatic priorities ahead of this year’s COP28 UN climate summit. A draft seen by Reuters on Monday said the EU would back “towards energy systems free of unabated fossil fuels well ahead of 2050.” The approval has been delayed, however, by disputes over whether EU diplomacy should promote low-carbon hydrogen – meaning hydrogen produced from nuclear electricity – or focus on hydrogen produced from renewable energy. The latest draft did not specify which type of hydrogen the EU would promote but said EU diplomacy would also promote sustainable “low-carbon technologies”. (Reuters)

Climate diplomacy – A short trip to Saudi Arabia concluded on Monday for the EU Commission’s vice-president Frans Timmermans and energy commissioner Kadri Simson. They spent two days meeting with government representatives to prepare for the 2023 UN climate change conference, COP28. They met Saudi energy minister Prince Abdulaziz bin Salman Al-Saud, then attended a presentation on the energy transition and a roundtable on hydrogen. They also met the ministers of commerce, environment, and the minister of foreign affairs Adel Al-Jubeir, who also serves as the oil-rich nation’s climate envoy. The EU team visited various national energy companies and research centres in Jubail and Dhahran.

ASIA PACIFIC

Green home loans — Australia’s Clean Energy Finance Corporation (CEFC) has teamed up with “big four” bank, CBA, committing A$125 million ($84 mln) to the bank’s Green Home Offer, to help cut emissions in the housing sector and improve energy efficiency in new and renovated homes, the CEFC announced. The Green Home Offer encourages home builders and renovators to lift sustainability standards and is available to customers who build or renovate to mee t the new Green Star Home Standard requirements established by the Green Building Council of Australia (GBCA), according to the CEFC. The GBCA standards supports a range of initiatives that can improve energy efficiency, such as achieving a minimum 7-star National House Energy Rating, installing rooftop solar, heat pump water systems, and by not installing natural gas connections. Net zero energy requirements including electrification throughout the property will also be targeted. CEFC CEO Ian Learmonth said discount green home loan initiatives are a powerful tool to drive down emissions, reduce energy use, and create homes that are fit for the future. The funding brings the CEFC’s total investment to green home finance to A$350 mln since 2020.

Fresh batch of bonds — New Zealander energy company Meridian Energy has announced it will offer up to NZ$150 million ($93 mln) fixed rate green bonds to institutional and New Zealand retail investors, it told the market. Meridian noted it has an issuer credit rating from S&P Global Ratings of BBB+. The interest rate for the bonds will be set on the rate set date as being equal to the base rate plus the issue margin, subject to a minimum interest rate of 5.70% per annum. Meridian noted it has the ability to accept oversubscriptions of up to an additional NZ$50 mln at its discretion. The offer is expected to close on Thursday, Mar. 9, 2023 and the green bonds are expected to be quoted on the NZX debt market.

Hydrogen beware – The Malaysian state of Sarawak has grand plans to accelerate the use of greener hydrogen energy sources, with the goal of becoming the first hydrogen-driven economy in Southeast Asia, but its ambitions might be stymied by a lack of global demand for hydrogen and more cost-competitive alternatives such as battery fuel cells, a commentary in Fulcrum states. While there are many plans to accelerate the production and export of hydrogen, it remains to be seen whether Sarawak’s ambitious transition to the fuel would be realised. There are several challenges: lack of commercial scalability of projects, higher purchasing prices for hydrogen-fuelled buses and passenger cars and the relative attractiveness of battery fuel cell alternatives. There are also specific transportation challenges such as leakages, technical complications, costs associated with liquefying hydrogen and losses in efficiency when the element is converted to or from compounds such as ammonia, according to the commentary.

AMERICAS

Green gas – The Biden administration is holding talks with global energy companies and foreign officials in an effort to set standards for certified natural gas, a form of the fuel that producers market as climate friendly, Reuters reported. The effort comes as the US seeks to sustain its LNG exports to Europe to displace Russian fuel, while also promoting efforts to fight global warming. A credible market for certified natural gas could help it tackle both goals at once. Gas can be certified as low- or no-carbon if its producers can prove they have reduced GHG emissions associated with getting it to market, or if they purchase carbon offsets to cut its net climate impact. The US has become the world’s top gas producer in recent years, and competes with Qatar to be top LNG exporter.

Resurgent renewables – Wind, solar, and battery storage are growing as a share of new electric-generating capacity each year. In 2023, these three technologies account for 82% of the new, utility-scale generating capacity that developers plan to bring online in the US, according to a report Monday by the US Energy Information Administration, citing its Preliminary Monthly Electric Generator Inventory. Just over half of the new US generating capacity expected in 2023 is solar power. If all of the planned capacity comes online this year as expected, it will be the most US solar capacity added in a single year and the first year that more than half of US capacity additions are solar. As of January 2023, 141.3 GW of wind capacity was operating in the US, about 12% of the US total. Developers plan to add another 7.1 GW in 2023.

VOLUNTARY

Carbon monitoring for farmers – Virginia-based Agrology, a predictive agriculture company, on Monday announced the launch of the Arbiter Carbon Monitoring System, a system that continuously monitors and quantifies soil carbon flux for farmers. The Agrology Arbiter System helps growers track and quantify soil carbon, delivering carbon flux data and soil health data to growers on their mobile and desktop devices. With Arbiter, growers receive critical alerts for anomalies and complex challenges like soil carbon flux and soil microbiome health, the pinnacles of regenerative farming. “The future of climate-smart farming is here,” said Adam Koeppel, co-founder and CEO of Agrology. “Sequestering, storing, and keeping carbon in the soil is the best way to rapidly and affordably remove atmospheric carbon. Agrology is helping farmers do just that. For the first time growers can comprehensively monitor carbon projects, own their carbon data, and use this data to offset their carbon footprints or earn money with carbon credits.”

Let the grain fall – US-headquartered sustainability startup Grain Ecosystem on Monday announced it will launch its digital platform supporting carbon removal project development at the North American Carbon World (NACW) Summit on Mar. 21. The Grain Ecosystem product launch will include private beta access for users and a workshop with carbon project developer South Pole to explore emerging opportunities for biochar project development, including market insights, methodological landscape, and an interactive demonstration of the Grain platform.

SCIENCE & TECH

Weather mapping – The Executive Council of the World Meteorological Organisation (WMO) endorsed plans during their Feb. 27 to Mar. 3 session for a new GHG Monitoring Infrastructure to leverage all existing GHG monitoring capabilities – space-based and surface-based observing systems, all relevant modelling, and data assimilation capabilities – in an integrated, operational framework, Mirage News reported. The monitoring infrastructure will consist of four main components: 1) a global set of surface-based and satellite-based observations of CO2, CH4, and N2O concentrations; 2) prior estimates of GHG emissions; 3) a set of global high resolution earth system models representing GHG cycles; and 4) data assimilation systems that optimally combine observations with model calculations to generate higher accuracy, the report outlined. The infrastructure is expected to produce gridded net monthly fluxes of CO2, CH4, and N2O at the special resolution of 100 km by 100 km with a minimum possible delay. The Council will seek further approval of this initiative at the World Meteorological Congress in May.

AND FINALLY…

Blobs from space – Algal blooms in coastal areas increased in size and frequency during the first two decades of this century as the world’s oceans warmed, according to an analysis of about 760,000 satellite images by researchers led by a Chinese academic and published in the journal Nature. These algae are an essential nutrient for marine animals, from fish to whales, but the proliferation of blooms has become a major environmental problem worldwide as some out-of-control growth has produced toxic or harmful effects. Over 80% of the world’s coastal countries experienced algae blooms between 2003 and 2020, with blooms increasing by 59.2% in frequency and 13.2% in size over the 17-year period. These changes have a significant correlation with the warming of the oceans as a result of human-made climate change, the paper found. (Bloomberg)

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