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TOP STORIES
Major REDD developers back new carbon credit certifier to rival Verra -source
A group of REDD project developers and experts are backing a new standard body that will provide an alternative to Verra’s proposed consolidated methodology for avoided deforestation, a well-placed source has told Carbon Pulse.
Carbon Pulse grows global news reporting team by almost 50% in biggest hiring push yet
Carbon Pulse has increased its global team of reporters by nearly 50% in its largest hiring push to date, as the company channels significant investment into further strengthening the world’s premier carbon markets news service.
EMEA
AFRICA CLIMATE SUMMIT: Leaders call for global carbon taxation regime following $23 bln of pledges
African leaders adopted the “Nairobi Declaration” as the curtain closed on the inaugural Africa Climate Summit in Kenya on Wednesday, calling for a tax on fossil fuels, aviation and maritime transport, and a reform of the world financial system that they said penalises African nations with excessively high interest rates.
EU regulation to impose ETS allowance transaction limits in regulation update
The European Commission is set to introduce EU ETS allowance transaction limits as part of security measures for the market’s Union Registry as part of a regulation due to enter into force on Sunday that includes a provision to enable new fees to be charged for registry access.
South African chemicals giant signs partnership with project developer for carbon credit supply
A large energy and chemicals firm based in South Africa has partnered with a voluntary carbon project developer, the firms announced in a release Wednesday, which will see historically one of the largest corporate buyers of credits secure fresh supply.
Euro Markets: EUAs give up morning gains amid steep plunge in gas prices on delay to strike action
European carbon fell sharply in the afternoon on Wednesday, wiping out the morning’s gains amid a plunge in gas prices after strike action at LNG plants in Australia was delayed, after positioning data showed that speculative traders had increased their net short holdings.
AMERICAS
Washington Q3 carbon auction settlement triggers second reserve sale, prompting sudden cost containment measures
The August auction for Washington’s WCI-modelled cap-and-invest programme sold out at a new high and triggered its second reserve sale this fall, according to results published Wednesday, though permit values tumbled on the secondary market after the Department of Ecology (ECY) revealed millions of these forthcoming cost containment allowances would be sold exclusively at the scheme’s lower reserve tier price well below recent levels.
RFS Market: D6 RIN prices hit 1.5-year low as D4 supply boosts
D6 RINs plunged to a 1.5-year low this week, as market participants attributed the decrease to an oversupply of D4 credits under the US Renewable Fuel Standard (RFS) and the impact of a falling bean oil-heat oil (BOHO) spread.
German carmakers to install pilot direct air capture unit in Chile next year
Two German carmakers and a large e-fuels firm announced at a summit in Munich that they will develop a direct air capture facility to be installed in Chile in 2024.
ASIA PACIFIC
Australia Market Roundup: Developer secures half a million ACCUs as price dips below A$29
The Clean Energy Regulator has issued almost 1.4 million Australian Carbon Credit Units (ACCUs) for a second consecutive week as one developer received more than 500,000, while the spot price for generic units has crept below A$29.
Shenzhen to auction off China’s first mangrove-based offsets in late September
Shenzhen, a major city in southern China, is set to auction off the country’s first batch of mangrove-based offsets verified under a local scheme in late September amid growing domestic interest in blue carbon.
Australia appoints expert to review ‘carbon leakage’ with view to CBAM
Australia has put ANU professor Frank Jotzo in charge of a federal review into ‘carbon leakage’ with a view to furthering a carbon border adjustment mechanism that would add a tax to imports of steel and cement.
Japanese developer partners with Vietnamese govt-owned player for rice farming project
A Tokyo-based climate startup is planning to kick off a methane reduction project in Vietnam next year through collaboration with a local partner, based on a rice cultivation methodology that has started to gain popularity among Japanese developers.
Oil trading company partners with US-based software developer to launch carbon emissions platform for energy sector
A major oil trading company and a US-based software firm on Wednesday launched a platform helping clients to calculate supply chain carbon emissions in the energy sector.
VOLUNTARY
Reputational risk driving VCM price rout won’t ease till 2024, US investment bank says
It will likely take until 2024 for three different integrity initiatives to resolve declining voluntary carbon market (VCM) prices, researchers said in a report released Wednesday.
Majority of nature-based offset projects fail advocacy group’s evaluation criteria amid systemic flaws
There are systemic flaws pertaining to nature-based offset projects in the voluntary carbon market (VCM), a European environmental advocacy group outlined in a report on Wednesday, while offering several recommendations to ensure and improve climate integrity in the sector going forward.
US agtech company publishes peer-reviewed soil carbon credit methodology
An agtech-focused carbon credit developer has had its methodology published in a peer-reviewed journal, which they claim adds scientific weight to their crediting approach.
INTERNATIONAL
Harmonisation needed in legal treatment of carbon credits, experts say
Confusion on how to understand the legal nature and classification of carbon credits highlights the need for global harmonisation in the international marketplace, said a panel of lawyers at a webinar on Wednesday.
BIODIVERSITY (FREE TO READ)
AFRICA CLIMATE SUMMIT: Nature NGOs commit $150 mln to restore African rangelands
Conservation International and the Peace Parks Foundation have committed $150 million to a new initiative during Africa Climate Week that aims to boost biodiversity and climate resilience through climate-smart grazing practices.
UN finance bodies release global principles to scale blue bonds
A group of UN finance organisations have launched voluntary principles to guide market participants for bond instruments in an effort to increase biodiversity and climate-focused investment in marine projects.
Former heads of government urge action to uphold nature finance pledge
The former heads of state of Colombia, Ethiopia, and Uganda have this week urged global leaders to ensure that the nature finance commitment made at the UN biodiversity COP15 summit to deliver at least $20 billion per year to developing countries by 2025 is kept to.
ISS ESG: 13% of banks courting biodiversity controversies
Some 13% of approximately 1,000 banks covered by ISS ESG’s data service are linked to biodiversity controversies, according to an executive at the company.
Time to define ‘nature positive’, says new global initiative
A coalition comprising some of the largest environmental organisations and business groups has banded together to define the term ‘nature positive’, in a bid to clear up its meaning for stakeholders in nature and biodiversity.
IBAT partners with impact data provider to support investors
The Integrated Biodiversity Assessment Tool (IBAT) Alliance has partnered with impact data and analytics provider GIST Impact to help investors access its information.
Investment firm publishes guide on biodiversity risks for institutional investors
First Sentier Investors, a global investment manager, has launched a guide Thursday designed to help institutional investors identify and assess nature and biodiversity risk in portfolio companies in light of the final framework outlined by the Taskforce on Nature-Related Financial Disclosures (TNFD), which is due to be published imminently.
ICYM
UPDATE – New Zealand auction fails for a third consecutive time
New Zealand’s quarterly carbon auction failed for a third straight time on Wednesday, as the sale again did not clear above the government’s confidential minimum price.
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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.
Flowcarbon Carbon Smart Summit – Sep. 19, New York City: Your chance to get up to speed on the fast-changing carbon markets at Climate Week NYC! Join us for a full-day/in-person event featuring leading experts working at the forefront of the voluntary carbon markets — from project development and finance to key policy initiatives, corporate sustainability and technology trends. Speakers will include: Mark Patel (McKinsey), Kelley Kizzier (Bezos Earth Fund), Mark Kenber (VCMI), Alexia Kelly (High Tide), Judith Simon (Verra), David Antonioli, Zach Scott (Trafigura), Julie Bennett Bunuan (Truist) — and many more. Registration is free. Sign up today at carbonsmart.global
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
Green growth, debunked – Decoupling rates in high-income countries are inadequate for meeting the climate and equity commitments of the Paris Agreement and cannot legitimately be considered green, a new study published in The Lancet shows. “If green is to be consistent with the Paris Agreement, then high-income countries have not achieved green growth, and are very unlikely to be able to achieve it in the future,” the researchers wrote. “To achieve Paris-compliant emission reductions, high-income countries will need to pursue post-growth demand-reduction strategies, reorienting the economy towards sufficiency, equity, and human wellbeing, while also accelerating technological change and efficiency improvements.”
EMEA
Just one more – Nigeria is working on a proposal for a Just Energy Transition Partnership (JETP) to submit to the G7, as part of efforts to increase financing to help it meet its net zero 2060 target, Argus reported, citing a government spokesman speaking at the Africa Climate Summit in Nairobi. Last year Nigerian environment minister Mohammed Abdullahi called on G7 countries to include Nigeria in the climate partnership list of nations to receive the public-private funding led by Western developed nations. South Africa, Senegal, Indonesia, and Vietnam have so far struck such deals.
Fusion finance – Germany plans to spend more than €1 bln on nuclear fusion research by 2028 to support ongoing activities at the Institute for Plasma Physics (IPP), the Karlsruhe Institute of Technology (KIT) and the Research Centre Jülich, reports Clean Energy Wire. The aim is to create a “joint fusion ecosystem with industry” to enable a fusion power plant in Germany as soon as possible. This follows a declaration by German nuclear fusion start-up Marvel Fusion in August, which blamed a lack of government support in Europe for its decision to build a fusion facility in the US. The final three remaining nuclear fission reactors in Germany were switched off in April.
All together now – All levels of government and the opposition should pull together to guarantee Germany’s future success, under Chancellor Olaf Scholz’s “Pact for Germany”, reports Clean Energy Wire. The collaboration should focus on five key areas of interest to citizens, he told Parliament, which are: energy supply, construction of new housing, infrastructure modernisation, business competitiveness, and digitalisation of administration. Germany has already shown substantial progress in convening around a common goal, by ramping up the installation of wind turbines and solar arrays, and so could do similar to achieve these other goals, he said.
Power shift – The UK’s North Sea Transition Authority (NSTA) is expected to take on the role of offshore hydrogen transport and storage regulator following the conclusion of a consultation on the proposal, a release confirmed. The move is intended to support British industry by enabling pioneering projects to obtain the necessary licences and consents and move quickly into operation. When the legislation comes into effect, it will mean that the NSTA will become the licensing authority for offshore hydrogen pipelines, bringing these under similar arrangements currently used for oil and gas pipelines, as well as the authority for offshore hydrogen storage, which will enable the body to issue and revoke hydrogen storage licences .
AMERICAS
Arctic abatement – US President Joe Biden is cancelling seven oil and gas leases to arctic oil and gas drilling sites, entirely reversing a Trump-era move to open–up the Arctic National Wildlife Refuge. Additionally, the White House is proposing to expand protections against oil drilling just west of the refuge on the Arctic Coast. The Biden administration previously approved an $8 bln oil operation in the National Petroleum Reserve in Alaska. (E&E News)
Nothing wasted – The US Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) announced Wednesday up to $30 mln of funding for the development of technologies that reduce or eliminate the need for natural gas flaring at oil production sites by converting unused and otherwise wasted natural gas produced at those operations into value-added products such as sustainable chemicals and fuels. This process emits methane, which is the second most abundant GHG, accounting for 20 percent of global emissions. The funding is intended to support President Joe Biden’s Methane Emissions Reduction Action Plan and his administration’s pledge that the US will work with global partners to reduce global methane emissions by 30% from 2020 levels by 2030.
Graze and sequester – An interdisciplinary team at the University of Alberta is launching a research project with the goal of sequestering 32.5 tonnes of carbon in the ground using grazing management techniques and genomic tools. The project, co-led by Carolyn Fitzsimmons and James Cahill, aims to identify how grazing management techniques affect agricultural communities and their connections to changes in GHG emissions measured in soil and cattle. The researchers will examine two grazing techniques – continuous grazing and adaptive multi-paddock grazing — to determine their impact on carbon storage, theorising that adaptive multi-paddock grazing might improve carbon storage in grasslands. (University of Alberta)
ASIA PACIFIC
Hydrogen hub – India’s shipping sector will go green in the next 10 years, making the country a key green hydrogen refuelling hub for ships, Minister for Power and New and Renewable Energy RK Singh said at a conference on Tuesday. The minister said the government is going to come out with a pilot for green hydrogen or green ammonia for energy storage to ensure round-the-clock renewable power. The government said that the roadmap for the National Green Hydrogen Mission (NGHM) is almost finalised and will be released shortly, Moneycontrol reported.
CCS cooperation – Australia’s largest oil and gas company has signed a non-binding agreement with Japan’s Kansai Electric Power to study carbon capture and storage to create synthetic methane value chains between Australia and Japan. Woodside Energy will work with KEPCO on transporting CO2 from its power plants to Australia. The gas could either be sequestered at one of Woodside’s three planned CCS HUBS or mixed with hydrogen to create ‘e-methane.’
VOLUNTARY
Verra validation – Verra is accepting proposals from validation/verification bodies (VVBs) to review its proposed methodology for projects that deploy improved thermal energy generation units for cookstoves and other thermal applicants. The methodology has incorporated elements of existing methodologies that are currently approved for use within the Verified Carbon Standard (VCS) programme to cover a wide range of activities, and includes improvements to represent current best practices and streamlined monitoring approaches. The proposed methodology has been consolidated based on requests for revision and expansion of the scope of VMR0006, and is currently at “Step 3: Draft Methodology Development” of the VCS Methodology Development and Review Process, 4.3. (Verra)
AND FINALLY…
Come one, come all – Former UN climate chief Christiana Figueres has described the upcoming COP28 UN climate summit in Dubai as a “circus”, arguing that the main purpose of the meeting could be done from home. Figueres, who stepped down from the role after nations struck the 2015 Paris Agreement, said that the need of the hour is to finance and execute the pact. “90,000 people go there for a circus,” she said. “Honestly, I would prefer 90,000 people stay at home and do their job.” (Bloomberg)
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