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TOP STORY

ANALYSIS: China’s long-suspended voluntary market moves one step closer to relaunch, confidence returns

Participants in China’s carbon offset market see a potential comeback for the long-suspended national programme later this year, with a recent policy document shedding some light on how one of the world’s largest voluntary schemes will proceed in the Paris era.

AMERICAS

US government announces largest-ever investment in engineered carbon removal

US President Joe Biden’s administration revealed on Friday that it will provide $1.2 bln in funding to advance the development of the nation’s first commercial-scale direct air capture (DAC) facilities.

Brazil incorporates cap-and-trade in $346 bln plan to bolster economy

Brazil President Luiz Inacio Lula da Silva on Friday earmarked an infrastructure investment of R$1.7 trillion ($346 bln), with an emphasis on decarbonising Brazil through a regulated carbon market and issuance of sustainable sovereign bonds.

Emitters lift CCA, RGA net length as financial players take profits

Emitters added to their North American carbon net holdings as California Carbon Allowance (CCAs) prices traded through a volatile stretch into next week’s WCI quarterly auction, while speculators closed out of net positions in both the California and RGGI Allowance (RGA) programmes, data from the US Commodity Futures Trading Commission (CFTC) showed Friday.

ASIA PACIFIC

CN Markets: CEA price climbs to fresh all-time high, liquidity increases after emissions verification deadline

CO2 allowance prices in China’s carbon market reached almost 70 yuan ($9.68) in the past week, the highest level seen since the market started in 2021, with a significant increase in trading activity after regulated entities completed their annual emissions verification work, while the offset market also saw improved liquidity despite the limited supply.

Chevron invests in carbon sequestration research projects in Western Australia

Chevron will make investments in two carbon sequestration research projects in Western Australia, it announced Friday.

NZ business, climate groups call for urgent clarity on ETS reform proposals, outcomes

New Zealand sustainable business and climate groups have backed the intent of the government’s review of the ETS, but in consultation submissions called for “urgent” clarification on some of the key policy options proposed and Wellington’s desired outcomes for the review.

Shell, KNOC join Korea-Malaysia CCS supply chain venture

Oil major Shell and the Korea National Oil Corporation are among a batch of companies that on Friday joined an ongoing carbon capture and storage partnership between South Korea and Malaysia.

EMEA

Euro Markets: EUAs climb to eight-day high, matching end-July level as buying picks up

European carbon permit prices rose to their highest in eight days on Friday, bringing the benchmark contract level with prices at the end of July after a 3.7% weekly gain amid a resumption of buying activity based on technical and fundamental indicators.

VOLUNTARY

US alternative investment firm proposes standardised carbon credit rating system

Updates Thursday’s article with responses from Sylvera and BeZero regarding criticisms made towards their carbon credit ratings in the investment firm report. 

BIODIVERSITY (FREE TO READ)

TNFD study calls for global nature-related public data facility

A global nature-related data facility accessible for the public should be created to support governments, businesses, and civil society stakeholders in drawing up policies, setting targets, and making investments to combat the global nature crisis, according to a study released Friday by the Taskforce on Nature-related Financial Disclosures (TNFD).

Pulp and paper majors launch Amazon biodiversity protection programme

Two major players in the global pulp and paper industry have partnered to launch a pilot programme to protect biodiversity in the Amazon region.

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CONFERENCES

Argus North American Biofuels, LCFS & Carbon Markets Summit – Sep. 11-13, Monterey, CA: Join 600+ key government representatives and industry stakeholders from across the entire biofuels value chain and carbon markets sector for three days of networking and knowledge exchange. Hear from leading policy makers from California, Oregon, Washington, Canada’s ECCC, Alberta, and British Columbia and industry experts from LanzaJet, BMW of North America, Morgan Stanley, Chevron, Southwest, Mercuria, Radicle, Phillips 66 and more. Take advantage of this opportunity to gather the latest policy and market insights and reconnect with industry peers. Learn more here.

North America Climate Summit – Sep. 19-21, New York City: The International Emissions Trading Association (IETA) looks forward to welcoming delegates to our flagship North America Climate Summit (NACS) 2023, an official accredited event of New York Climate Week 2023 and the UN General Assembly 2023. The Summit is the ideal forum to take stock of the world’s evolving net zero landscape and clean growth opportunities, and a zoom into North America. Hear from policymakers, business leaders and innovators who are leading the pack in building, scaling and collaborating on carbon pricing and markets for net zero. Register 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

Adaptation finance – Sultan al-Jaber, the UAE official presiding over the COP28 UN climate talks, plans to convene a high-level dialogue next week to advance a new climate finance framework. Al-Jaber stressed adaptation finance as a priority, calling for a doubling of funding in the field by 2025. The talks will be co-hosted alongside economists Vera Songwe and Nicholas Stern, who lead the Independent High-Level Expert Group on Climate Finance. (Axios)

EMEA

Climate collision – UK companies lag behind in setting emissions reduction targets, putting them on a collision course with increasingly strict climate targets, reports Bloomberg. Some 64% of corporate emissions in Britain aren’t yet covered by targets, according to an analysis by Bain & Co. and nonprofit CDP. Large UK companies have been required to disclose their climate footprint since April 2022 and on average, UK companies have cut emissions by 8% since they began reporting through CDP, compared to just 4% for companies in North America and Europe, the study shows. Insufficient climate action by corporates may result in the UK falling even further behind in its national efforts to meet short-term net zero targets. The government targets a 68% reduction in emissions by 2030, from 1990 levels. It had achieved 46% by the end of last year, according to a report to parliament in June.

It’s official – EU climate chief Frans Timmermans has been officially nominated as party leader of the GroenLinks-PvdA alliance, the green and socialist party Dutch alliance, it was announced on Friday. Timmermans emerged as the sole candidate from the selection procedure of the two parties. Although there are no opposing candidates, the members of the party still have to vote on the nomination on August 22. This bring him closer to leaving the European Commission to pursue his bid to run in the Dutch snap elections scheduled in November.

For the people – Germany’s coalition government is committed to returning revenues from the country’s rising national CO2 price for heating and transport to citizens, reports energy and climate newsletter Tagesspiegel Background. Such a mechanism will be in place from 2025, a finance ministry source told the publication. Germany will raise the levy from the current €30/tCO2 to €40 at the start of 2024 and to €50 euros in 2025, according to media reports. (Clean Energy Wire)

Making friends – The British government has signed a two-year package of partnership support to improve Pacific Island countries access to climate finance, and delivery of resulting projects, according to a release seen by Carbon Pulse. The package will support the Island countries meet NDC targets and develop climate projects, but when asked whether these may generate carbon credits or fall under Article 6 of the Paris Agreement, no additional details were provided. If the first stage is successful, there is a possibility for a subsequent second phase, which has been initially made possible through the Global Green Growth Institute (GGGI), the release added.

ASIA PACIFIC

Regional challenge – A report by Global Energy Monitor warns the approval of up to 19 new gas fields in Southeast Asia by 2025 risks the region’s climate change goals, the Strait Times reports. The report said the 19 fields have reached or are expected to reach final investment decision between 2022 and 2025. The fields have estimated recoverable gas reserves of more than 540 bln cubic metres, or more than the 2020 proven reserves of the entire EU. About three-quarters of the new fields are in Malaysia and Vietnam, the report said. The potential lifespans of some proposed fields – including those in Brunei, Indonesia and Myanmar – extend beyond the 2050 net zero targets set by six ASEAN members.

Port Villa Call  – Finance ministers from across the Pacific met this week for the Pacific Islands Forum Economic Ministers meeting in Suva, Fiji, welcoming the Port Villa Call for a just transition to a fossil fuel free Pacific. The final communique requested leaders to consider issuing a formal declaration on a fossil fuel free pacific at the Pacific Islands Forum later this year. The Port Villa Call is designed as a framework for steps needed to enable a just transition in the Pacific, and the role of the international community both in phasing out fossil fuels first and fastest to prevent further devastating climate impacts, and providing finance and support needed for the transition, Tuvalu Minister of Finance and Economic Development Seve Paeniu said in a statement.

See you in court  – Australia’s Securities and Investment Commission (ASIC) has launched a civil action in the Federal Court against pension fund Active Super over greenwashing allegations. ASIC alleged that the fund falsely claimed it had eliminated investments that posed too great a risk to the environment and community, such as in gambling, tobacco, Russian oil and gas companies such as Gazprom and Rosneft, ConocoPhillips oil tar sands and coal mining companies. However, ASIC alleged from Feb. 1, 2021 to June 30 2023, that the fund held 28 holdings, either directly or indirectly, which exposed members to securities it claimed to restrict. This is ASIC’s third greenwashing civil penalty proceeding after ASIC recently took action against Mercer Super, and Vanguard Investments Australia.

Going solo – Gautam Adani, the Indian industrialist and chairman of the Adani Group, is prepared to go it alone in spending billions of dollars on developing green hydrogen in India, after TotalEnergies put a plan to partner in the venture on hold, Bloomberg reports. Total had agreed to buy a 25% stake in Adani New Industries Ltd. for an undisclosed sum to help fund green hydrogen projects in India but suspended its investment in February, pending investigation of a short seller’s allegations of fraud at the Adani Group, charges that the conglomerate has denied. Adani Enterprises will invest about $300 mln in the hydrogen business in the year through March and this will start to rise rapidly from next year, Jugeshinder Singh, chief financial officer at Adani Enterprises, said.

AMERICAS

One-stop-shop – US President Joe Biden’s administration on Thursday proposed a rule to streamline the federal permitting process for major transmission line through the Department of Energy, aiming to complete environmental reviews and other federal approvals for electric power lines within two years. Currently, a large transmission project might need approvals from the Forest Service, the Department of the Interior and other agencies depending on its location and size — under the proposed rule, the DOE would be a ‘one-stop-shop’ as the lead agency. The proposed changes — which came in response to the recent debt ceiling deal — could dramatically reduce the amount of time it takes to build new long-distance power lines in the US, clean energy advocates said. Getting transmission built faster could help integrate more solar and wind into the US energy resource mix. (E&E News) 

VOLUNTARY

Business offsets – Estimating and offsetting business-related carbon emissions has just got easier with the launch of a new tool by Internova Travel Group. The travel management company (TMC) has partnered with data analytics and software provider Prime Numbers Technology and NGO Sustainable Travel International to build an “easy-to-use solution” to offset carbon emissions related to business travel. The tool allows business clients to purchase carbon offsets directly from their dashboards and reports related to air, car, rail transfers or hotel stays by clicking a link next to the amount of carbon they wish to offset. The supported projects are a mix of forestry, energy and blue carbon projects that are suitably verified. Companies purchasing offsets will receive quarterly impact reports detailing the project portfolio they supported.

INVESTMENT

Big bets – The world’s largest alternative asset management Blackstone announced it has raised $7.1 bln for a fund to finance solar companies, electric car parts makers, and technology to cut carbon emissions, surpassing an initially-earmarked $6 bln raise. The Blackstone Green Private Credit Fund III is the firm’s largest pool of funding for clean energy, in contrast to rivals and hedge funds who continue to bet on fossil fuels for the long–term. (Bloomberg) 

SCIENCE & TECH

Photosynthesis finish – A team of Earth scientists at the Chinese Academy of Agricultural Science’s Grassland Research Institute, working with colleagues from several institutions in the US., has found evidence that the rise in photosynthesis rates around the world caused by the increase of CO2 has slowed dramatically. In their research, reported in the journal Science, the group measured changes in global photosynthesis rates over the past several decade. Prior research has shown that as levels of CO2 in the atmosphere rose over the past century, plants have taken advantage of the increase in the gas by speeding up photosynthesis and have been taking more carbon out of the atmosphere. The net effect has been a brake on global warming. In this new effort, the research team found evidence that rising atmospheric CO2 has slowed the rate of increase in global photosynthesis because the atmosphere has also grown drier. (Phys.org)

Spin the eVTOL-le – Archer Aviation, an aviation company developing electric vertical take–off and landing (eVTOL) aircraft, on Thursday announced it has secured $215 mln in funding from prominent aviation players Boeing and United Airlines alongside a suite of other industry and financial leaders. The company has received $1.1 bln in funding to date and is on track to complete what it claims will be the first ever eVTOL aircraft delivery to a customer as part of its contract with the US Department of Defense. 

AND FINALLY…

Practical joker – While US President Joe Biden has not formally declared a climate emergency, he claims that he has already done so, “practically speaking”. Biden pointed to his administration’s efforts to conserve land, rejoin the Paris climate accord, and enactment of the IRA as evidence, but environmental advocates continue to push for a formal emergency declaration that would unlock additional executive authorities to mobilise renewable energy investments and halt fossil fuel developments. (E&E News). 

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