Newsletters > CP Daily: Monday October 30, 2023

CP Daily: Monday October 30, 2023

Published 02:09 on October 31, 2023  /  Last updated at 02:09 on October 31, 2023  /  Newsletters

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

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TOP STORY

VCM Report: Early October enthusiasm for carbon credits fades after Kariba bad press

Activity in the voluntary carbon market dried up over the past last week compared to the flourish seen at the start of the fourth quarter, with confidence knocked by another dose of negative press about the troubled Kariba REDD project in Zimbabwe.

EMEA

Euro Markets: EUAs set new 5-month low, tracking volatile gas prices amid supply interruptions

European carbon prices gave up early gains and slumped to a new five-month low on Monday, tracking a similar trend in energy markets, which shrugged off an unscheduled drop in North Sea gas supplies, forecasts for slightly cooler weather, and outages at two French nuclear plants.

Faltering UK carbon price could mean billions in export tax bills, lost treasury revenues -report

The UK’s faltering carbon price could result in the loss of billions in treasury revenues and may expose British companies to large tax bills for exporting to the EU, warns a new report.

Finland’s last coal plant to be used in country’s emergency power reserve

Finland’s emergency power reserve agency signed an agreement with energy company Fortum to use the firm’s coal-fired plant in case of severe supply power disruption for two years from March 2024, Fortum said in a statement on Monday.

Cookstove manufacturer issues green bonds to fund carbon project expansion

A project developer and manufacturer has issued sub-Saharan Africa’s first-ever green bond designated for the cookstove market to help fund its expansion amid the depressed market for carbon credits.

AMERICAS

RGGI Market: RGAs inch past all-time highs on nearly three-month low volumes

RGGI allowances (RGAs) crossed a record settlement price during the week, despite relative sluggishness in the market and concerns over the availability of renewable energy sources moving forward, as participants continue to await programme updates.

ASIA PACIFIC

Japan to pilot digital J-Credit verification, issuances

A tech firm will in November launch a demonstration project to digitalise the process of verifying and issuing units under the J-Credit scheme, as the government seeks to make the process quicker and easier for market participants.

Economy-wide carbon price seen as the best way to hit Australian emissions goals -survey

Australia’s best way to reach the emissions reductions goal it set last year after Labor won its first election in several cycles would be via the one thing the government has sworn against – an economy-wide cap-and-trade scheme – according to a survey of economists.

Kazakhstan becomes latest nation to sign up to Japan’s JCM

Kazakhstan on Monday became Japan’s 28th partner country under the Joint Crediting Mechanism (JCM), through which Tokyo hopes to generate 50-100 million carbon credits by the end of the decade.

INTERNATIONAL

A month out from COP28, efforts to get a global deal to phase out fossil fuels gain momentum

Fresh impetus to get a global commitment to phase out fossil fuels is emerging among some of the ministers and state representatives currently gathered in Abu Dhabi for preparatory meetings a month ahead of the COP28 UN climate conference in Dubai.

Canadian hydrogen from natural gas labelled as CO2-free gets $10 mln for South Korea’s net zero goal

A Canadian hydrogen company announced Monday that it has secured $10 million in funding to develop a supply chain of CO2-free hydrogen and ammonia from natural gas for South Korea to meet its net zero ambitions, in partnership with a Korean energy company.

VOLUNTARY

Market steps into the unknown to supply adjusted CORSIA-eligible units

Demand for credits eligible for the first full phase of the CORSIA is building ahead of the aviation offset scheme’s transition next year, but market participants are questioning whether supply of the required correspondingly-adjusted credits will be available, a conference heard on Monday.

Researchers propose new pricing approach to restore faith in voluntary carbon markets

Researchers have unveiled a new approach to valuing carbon credits that they say brings much-needed transparency, accountability, and comparability to the global voluntary carbon markets, specifically nature-based projects.

Industrial technology firm partners with direct air capture company to utilise renewable power

A low-carbon cement and lime technology developer announced a collaboration with a direct air capture (DAC) company to utilise electric kilns running on renewable electricity at future DAC plants for CO2 mitigation.

BIODIVERSITY (FREE TO READ)

Malaysia threatens repercussions as state reveals plan to remove forest protections

Malaysia’s federal government on Saturday said it would end biodiversity-related payments to Kelantan if the state goes through with its plans to remove protections for vast areas of rainforest.

Talks fail again to agree protection of vast Antarctic marine regions

Two weeks of negotiations among the almost 30 member nations of the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR) ended Friday evening in Hobart, Australia with a fresh failure to establish three marine protected areas (MPAs) in the region representing more than 1% of the global ocean.

Australian banks’ lending practices contributing to the destruction of nature, report finds

The lending habits of Australia’s banks are contributing to the destruction of nature, particularly in high-impact sectors such as agriculture, property, energy, and resources, according to a report released Monday.

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CONFERENCES

Aviation Carbon 2023 – Nov. 6-7, London Heathrow: Join us for a unique networking forum for aviation sustainability experts and professionals. Now in its 11th edition, Aviation Carbon attracts over 300 delegates from 70 countries, with over 100 airlines and aircraft operators represented.  Over 60 speakers will be hosting interactive panel discussions and workshops, to discuss key issues such as SAF, sustainability-linked finance, ESG, carbon removal technology, and the non-CO2 impacts of aviation on the climate. Don’t miss this opportunity to be part of a global conversation about the future of sustainable aviation – register here: https://www.aviationcarbon.aero/

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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

IN MEMORIAM

In memoriam – Tributes have been paid to the renowned climate scientist Saleemul Huq, who has passed away at the age of 71. Saleemul was a key figure in the climate change movement and had been a lead author on several major UN reports from the IPCC. He also attended every COP summit since 1995. Noted for his tireless advocacy for climate adaptation and loss and damage support, Saleemul was especially focused on helping vulnerable nations. His death was confirmed by the International Centre for Climate Change and Development (ICCCAD) in Bangladesh, where he was director. Colleagues and climate campaigners worldwide have praised Saleemul’s professional tenacity, moral leadership, scientific advocacy, kindness, and generosity, describing his legacy as “unmatched”.

In memoriam – Patrick Birley, the former CEO of the European Climate Exchange (ECX) and LCH.Clearnet passed away last week, according to Global Investor Group. Patrick’s career in finance spanned more than 30 years. He joined the fledgling ECX in 2007, where he helped pioneer the concept of carbon trading and built the bourse into a top 40 global futures exchange by volume in 2009, “a significant achievement for a single asset class bourse”. After the sale of the ECX to ICE in 2010, Patrick embarked on a career as a consultant, then took a break from finance to spend two years running a small craft beer brewery on the Isle of Wight, before returning to London to run the NEX equities exchange. At the time of his death, he was in the process of setting up a charity for young people with mental health problems in the West of England. Above all, Patrick was a devoted father to his three daughters.

EMEA

Explore away – Shell, Equinor, DNO, BP, and TotalEnergies were among the successful bidders to be awarded 27 new hydrocarbon exploration licenses in the UK’s oil and gas licensing round by oil and gas regulator the North Sea Transition Authority (NSTA). The licensing round is the first of its kind since 2019 and was launched around a year ago, receiving 115 applications from 76 companies, with some North Sea producers turning away due to Britain’s windfall tax on the sector. The UK government says that new oil and gas exploration is in line with its target to become a net zero carbon economy by 2050. The UK currently produces around 1.3 mln barrels of oil equiv. a day — down from 4.4 mln boed at the start of the millennium. (Reuters)

ASIA PACIFIC

CCS – Cosmo Energy Group and Toshiba aim to take the CO2 emissions from the former’s refineries and turn them into a new value-add product while cutting emissions. Oil trader Cosmo said it will use Toshiba’s electrolysis technology to create carbon monoxide, which can then be used as feedstock for methanol and ethanol. It will use carbon capture and storage to trap the CO2, it said, and may use renewable energy for its electrolysis, cutting down on emissions. “In addition, the two companies will also consider using oxygen produced as a byproduct of CO2 electrolysis to contribute to energy conservation and reduction of CO2 emissions at refineries,” a joint statement on Monday said. 

Novel use for gas ship – Mitsui plans to use a floating storage and re-gasification unit (FSRU) in a shared feasibility study designed to better understand the hydrogen and green ammonia supply chains. FSRUs are typically used to convert LNG back to its gaseous state. The two substances are identified in the Japanese government’s Sixth Strategic Energy Plan as energy resources that can be expected to play a vital role in the carbon neutral era. Mitsui is collaborating with the Fukui prefectural government and the Hokuriku Electric Power Company on a feasibility study for a hydrogen-ammonia supply chain at the Port of Tsuruga. It receives a subsidy via the Ministry of Economy, Trade and Industry scheme to promote understanding about structural advancement and transitioning in the energy sector.

New low emissions cement trial – An Australian junior miner with a focus on producing kaolin and high quality silica assets has signed a global Intellectual Property licence with Western Australia’s Murdoch University to develop low emissions concrete, Proactive Investors reported Monday. The agreement involves the licensing and commercialisation of a geopolymer concrete batching plant and Colliecrete, known as Murdoch Technology. Geopolymer concrete is a low carbon concrete made by reacting aluminate and silicate bearing materials with a caustic activator, such as metakaolin, fly ash, ground blast furnace slag and other waste derived materials. The company intends to commercialise the Murdoch Technology by commencing studies to increase scale of the pilot plant to be able to produce Colliecrete and other geopolymer concrete formulations, such as using Pittong kaolin and various waste derived products including flyash and others. 

AMERICAS

Scrap in Saskatchewan – The Canadian prairie province of Saskatchewan is threatening to stop collecting the federal price on carbon charges from its residents starting Jan. 1, 2024, unless Liberal Prime Minister Justin Trudeau offers a break on home heating to western provinces. The Premier of Saskatchewan Scott Moe acknowledged that he would be breaking the law in a video address where he said the provincial utility would cease collecting carbon pricing charges from residents and not send carbon pricing money to the federal government. Trudeau recently announced a three-year delay to home heating oil carbon pricing charges, which is mostly used in historically Liberal-held areas of rural Atlantic Canada. Natural gas is the more common home heating method in Saskatchewan and Alberta, where the provinces have long called for the federal government to scrap the pricing measure. (The Canadian Press)

Storage security – The US Department of Energy has released a forecasting toolkit to help operators of underground CO2 storage sites assess the likelihood and magnitude of seismic activity that could arise from commercial-scale injection. While referring to geologic CO2 storage as safe and effective, the announcement states, “concerns remain about the potential to induce new seismic activity as a result of large-scale injection operations”. The Operational Forecasting of Induced Seismicity toolkit (ORION) is an open-source observation-based toolkit designed to forecast how potential induced seismic hazard may evolve in response to CO2 injection. The toolkit incorporates details on proposed injection operations and information on the seismic history at the site to forecast magnitude and frequency of potential induced seismic activity over time, which can be used by inform operational decisions and foster stakeholder communication. 

Choctaw cash – On Tuesday, the US Environmental Protection Agency (EPA) will present the Choctaw Nation with two grants totalling $2 mln, according to an EPA email notice received by Carbon Pulse. Of the total amount, $1.57 mln will be for brownfields funding to assess and clean up abandoned properties, while $400,000 will go towards reducing GHG emissions. Funding is provided from the Biden administration’s Investing in America agenda, and an event will be held Tuesday, Oct. 31 at 1400 CDT at Choctaw Nation headquarters in Durant, Oklahoma. 

Counting on Colombia – Colombia issued 8.2 mln carbon credits in the third quarter of this year, while nearly 2.7 mln credits were withdrawn, and almost 5.6 mln are still available, data from Colombian Association of Carbon’s Market Members shows. Credit issuances are up 8.3%, while withdrawals have increased by 4.7%. The waste and transportation industries have not made any withdrawals this quarter, but had over 1.7 mln withdrawals of credits last quarter. That indicates the two sectors have depleted their stocks of credits, which enable them to avoid paying the country’s carbon tax.

AND FINALLY…

Leave a trace behind…for greenwashing? – Scientists use environmental DNA, or eDNA, to measure and monitor biodiversity by tracing DNA of species in ecosystems, Bloomberg reported Monday. This technology – which is easy to use, non-invasive, and low cost – has found early adopters in industries that are often scrutinised for their environmental footprints, including Nestle and Brazilian miner Vale SA. Measurement tools such as eDNA enable companies to, in theory, measure and manage change after creating a current picture of the state of nature, and subsequently quantify improvements into biodiversity credits. However, suspicion looms over companies’ intentions, particularly in absence of strict regulations. One scientist, Frederic Hache, expressed concerns regarding the use of such tools to reframe conservation policies. “Conservation is not a corporation’s role, it’s government’s role,” he said. “This is being promoted in order to claim that this is an alternative to government regulation—‘Look, we’re doing this, there’s no need to regulate us.’ We’ve heard this story before.”

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