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COP28
US market regulator launches voluntary carbon credit trading guidelines
The US Commodity Futures Trading Commission (CFTC) published on Monday a set of principles for voluntary carbon credit derivatives contracts for trade on CFTC-regulated exchanges, a document flagged earlier in the day by the CFTC’s chairperson at COP28 in Dubai.
Voluntary carbon standards announce historic collaboration
Six of the major independent carbon crediting standards have announced on Monday at COP28 their intent to work together on common principles for the quantification and accounting of removals and emissions reductions, as they each seek assessment under the ICVCM’s Core Carbon Principles (CCPs).
Organisations unite on role of carbon credits for voluntary corporate climate action
Several international organisations including the Science Based Targets initiative (SBTi), the VCMI, and the ICVCM came together to establish an ‘end-to-end’ integrity framework that they say provides consistent guidance on decarbonisation including the use of carbon credits for residual emissions, as announced at COP28 on Monday.
Parties clash on Article 6 carbon removals text, as observers, negotiatiors describe ‘all or nothing’ scenario
A clash over carbon removals at COP28 is threatening to stall progress on developing the UN crediting mechanism, as some country negotiators wish to reopen talks over a key set of recommendations agreed ahead of the summit, which would could see a year of work “wasted”, according to multiple sources.
Multilateral development banks pledge to scale climate finance via programmatic approach
The leaders of major multilateral development banks (MDBs) pledged to scale up climate finance and development funding through a new approach structured around country sector platforms rather than individual projects, at an UNFCCC hosted discussion on Monday at COP28 in Dubai.
Canada releases draft regulations to curb oil and gas sector methane emissions
Canada announced a set of draft regulations on the sidelines of COP28 in Dubai on Monday to tackle methane emissions from its oil and gas sector, aiming to align with the government’s commitment as a signatory of the Global Methane Pledge to curb output of the potent warming gas.
Asian industrials face financial peril without decarbonisation, study warns
Asian cement and steel companies may face severe financial challenges in the next decade unless they commit to decarbonisation, according to a new academic study.
Vanuatu criticises low lock-in price under Swiss international carbon trade deal
Switzerland’s international carbon trade project in Vanuatu has a lock-in price that is too low, officials from the Pacific Island nation told Carbon Pulse on the sidelines of COP28, though the host country remains optimistic about its involvement with Article 6.
DRC receives $40 mln to appraise natural capital for biodiversity and carbon crediting
A tech company inked a deal with the Democratic Republic of the Congo (DRC) on Monday to invest $40 million in the measurement and valuation of the country’s natural assets for potential carbon and biodiversity crediting.
Climate summits fast becoming trade negotiations issue, warns banker
Climate events such as the annual UN summit are moving rapidly towards becoming a place to debate issues with international trade negotiations, a banker told a panel discussion at COP28.
OECD sets out plans for its climate forum, saying it will provide a “safe space” for countries to compare notes
The OECD has set out plans for its climate group, the Inclusive Forum on Carbon Mitigation Approaches, saying it hopes it will provide a safe space for countries to talk outside of a negotiation setting and help bridge the gap between mitigation action and ambition.
Coal transition consortium signs “first-of-its-kind” pilot carbon crediting agreement
The Coal to Clean Credit Initiative (CCCI) signed Monday an agreement for the early phaseout of a Filipino coal plant, and is working with the COP28 presidency to garner buying interest in the resulting carbon credits issued from its draft methodology, which it says will be eligible for transaction under the Paris Agreement.
Global CCS reliance to cost $1 trillion per year -report
Heavy dependence on carbon capture and storage (CCS) would be “hugely economically damaging”, costing nations globally around $1 trillion per year compared to an approach more strongly focused on renewable energy, a new report has found.
Potential for price floors and integral role of Indigenous Peoples central to discussions on biodiversity credits
Indigenous Peoples and local communities need to be at the heart of developing an effective and equitable biodiversity market due to the key role they play as stewards of biodiversity-rich land, while the introduction of a credit price floor could help ensure an equitable approach here, said speakers from the International Advisory Panel on Biodiversity Credits at COP28 today.
Initiative launches partnership to bring Australian savanna burning method to Africa and the world
An international initiative is seeking to replicate Australia’s successful savanna burning methodology to African nations and use the projects to generate Article 6 carbon credits, a COP28 side event heard Monday.
Timor-Leste working on VCM regulation, national registry, preparing for Article 6 projects
The Southeast Asian nation of Timor-Leste is preparing regulations and a national registry to govern voluntary carbon market projects in the country in preparation to eventually host Article 6 projects within its borders, an official told a panel discussion at COP28.
South Korea should consider setting reference price for domestic ETS, govt official says
The government of South Korea should introduce more measures to improve the efficiency of the domestic emissions trading scheme (ETS), engaging more investors to participate in the market by setting a reference price, a panel heard Monday.
Climate finance report urges countries to step up clean energy investment
New analysis published by climate finance experts on Monday called for all countries to commit to a substantial rise in investment to deliver the goals of the Paris Agreement.
Regulatory reform among six key factors to tripling nuclear energy -report
On the heels of a declaration by countries seeking to triple nuclear energy capacity, a group of non-profit policy advocacies launched a report on Monday on the sidelines of COP28 in Dubai with guidelines for the development of new international initiatives for the sector.
Bhutan launches national carbon registry, becomes first country to integrate with CAD Trust
Bhutan launched its national carbon registry at COP28 on Monday, also integrating itself with the Climate Action Data (CAD) Trust, the first country to do so.
Roundup for Day 5 – Dec. 4
It’s Day 5 of COP28, and climate finance is the catchphrase of the day – although tensions on 1.5C and the fossil fuel phaseout are bubbling. In our daily running blog, Carbon Pulse will report relevant or useful updates throughout the day. Timestamps are in local time (Gulf Standard Time, GMT+4).
EMEA
European Commission pledges to be on guard for carbon leakage from extension of ETS to shipping, as several nations urge delay
The European Commission said on Monday that it plans to monitor the potential for carbon leakage from the extension of the bloc’s ETS to the maritime sector, aiming to ease the concerns of several member states who urged the bloc to delay the inclusion of international shipping.
Euro Markets: EUAs slide to 13-month low on push from shorts, options traders amid energy weakness
EUAs weakened on Monday, shedding nearly 3% as the market came under renewed selling pressure after Friday’s rally, while gas prices fell back sharply amid milder weather forecasts and observers predicted that carbon prices appeared likely to remain under pressure for at least another week.
AMERICAS
RGGI Markets: Prices steady on high volume ahead of auction
RGGI allowance (RGA) values seesawed over the week amid skyrocketing volume ahead of the coming Q4 auction, as an exchange traded fund (ETF) sold off some of its holdings and the front-month contract went into delivery.
Analyst presents higher forecasts for CCAs, WCAs, and RGGI
A monthly report by a carbon market analysis firm revealed higher forecasts for California Carbon Allowance (CCA) prices in December and 2024, subject to changes in price triggers, with Washington Carbon Allowance (WCA) values also expected to rise, while the outlook for RGGI Allowances (RGAs) saw prices converging towards the Cost Containment Reserve (CCR) trigger in the later part of 2024.
ASIA PACIFIC
Australia well placed to develop hydrogen, 2024 carbon leakage review will help -report
Australia’s current carbon prices via its Safeguard Mechanism are not sufficiently high to drive down the price of hydrogen, but that may be about to change, a report said Monday.
Australia Market Roundup: ACCU demand projections likely to rise, issuance flat
Demand for Australian Carbon Credit Units (ACCUs) is likely to rise as more sectors of Australia’s economy are subject to decarbonisation policies, market observers told a panel discussion at COP28 in Dubai.
VOLUNTARY
VCM Report: Brisk carbon credit trade like the ‘old days’, as COP28 fires up confidence in future
Carbon credit trade remained brisk in the voluntary market in the last week of November amid end of year covering, although the REDD sector continued to cast a shadow over the brighter future promised by the headlines emerging from COP28 in sunny Dubai.
US well-plugging carbon credit company replaces CEO, announces acquisition
A Florida-headquartered company that plugs abandoned oil and gas wells to reduce methane emissions and generate carbon credits has replaced its CEO and has made an acquisition through a subsidiary.
BIODIVERSITY
Australia establishes nature investment advisory body
The federal Australian government has announced an advisory group to encourage business to invest in nature repair, it announced Monday, as it looks to pass its Nature Repair Market (NRM) legislation in parliament this week.
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Job listings this week
- *Feature Writer/Sub-Editor, Carbon Pulse – North America
- *Biodiversity Correspondent, Carbon Pulse – Europe (Remote)
- *Carbon Finance Project Manager, Nexus for Development – Phnom Penh
- *Senior Advisor, REDD+, Fauna & Flora International – Cambridge, UK
- *Senior Program Officer, Auditing and Accreditation, Verra – Remote (Worldwide)
- Associate Scientist, Climate Smart Spatial Planning, Conservation International – Arlington/Seattle/Santa Barbara
- Director, Africa Origination & Deal Lead, Conservation International – Nairobi/Cape Town/Johannesburg
- Carbon Policy Lead, Burn Manufacturing – Nairobi, Kenya
- Electric Policy Lead, Burn Manufacturing – Nairobi, Kenya
- Head of Carbon Sales (Kenya), Burn – Nairobi, Kenya
- Soil Carbon Project Manager, Carbon Link – Brisbane
*Premium listings
Or click here to see all listings
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Carbon Pulse has teamed up with CME Group to provide the market operator’s 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
Researching alliances – Germany’s environment agency has opened a tender for a three-year research project on international climate alliances and their interfaces with other climate protection instruments, measures, and initiatives “since climate alliances do not operate in a vacuum”. The work will map these voluntary initiatives and assess their contribution to closing ambition and/or implementation gaps, including investigating their role in cooperative approaches under Article 6 of the Paris Agreement. The tender is open until Jan. 24.
EMEA
Atomic reversal – Leading members of Germany’s conservative CDU/CSU alliance and the pro-business Free Democrats (FDP) have called for a reversal of the country’s nuclear phase-out. State premiers and senior federal party members of the CDU/CSU, which are in opposition at the federal level, want to bring decommissioned reactors back online and also plan for the construction of new nuclear power plants, the Frankfurter Allgemeine Zeitung reported. The article said there is an “overarching consensus” among the two conservative sister parties for re-opening the technology in Germany, due in large part to the government coalition’s current budget crisis. Germany closed its three remaining reactors in April this year.
Gas stocktake – Europe is still vulnerable to gas supply shocks despite significant progress in cutting its reliance on Russia, according to German utility RWE’s chief executive Markus Krebber. He said Europe needed to boost its capacity to import gas to make sure it could cope with any unexpected outages on pipelines or import terminals. The warning came despite Europe entering winter with gas stocks about 99% full after a major effort to fill them up over the summer to cope with cuts to supplies from Russia following Vladimir Putin’s full-scale invasion of Ukraine in February 2022. Speaking to the FT, Krebber said: “Continental Europe is in a much better position than last year. Gas storage is at maximum capacity and we have built some infrastructure.
ASIA PACIFIC
Powering up – India’s largest private energy company, Adani Power, has undertaken a green ammonia combustion pilot project at its Mundra plant as part of its decarbonization initiatives, Businesswire reported last week. Adani Power has collaborated with Japan’s IHI Corporation and Kowa to deliver the pilot co-firing up to 20% green ammonia in a 330 MW coal-fired unit in the state of Gujarat. Kowa is active in energy saving and energy creating products, while IHI is a heavy industry company that has ammonia firing technology. Driven by the Japan-India Clean Energy Partnership, the pilot’s focus on carbon neutrality and growth aligns with broader environmental goals. The Mundra plant in Gujarat is the first location outside of Japan to have been selected for this cutting-edge green initiative.
AMERICAS
Coastline costs – Three awards totalling $1.6 mln for Rhode Island from National Coastline Resilience Fund were announced by US Senator Sheldon Whitehouse in a press release on Friday. Woonasquatucket River Watershed Council, the Providence Resilience Partnership, and Bristol County Water Authority were all recipients of the awards. The fund received a significant boost from the Bipartisan Infrastructure Law, Senator Whitehosue said. Flood resiliency, habitat protection, and dam removal are all part of the fund’s projects.
Colorado Tries – Tri-State Generation and Transmission Association, which sells electricity to local co-ops in Colorado and other Western states, aims to close its last coal-fired power generating unit in Craig two years earlier than previously planned, Colorado Sun reports. It is also lining up for up to $970 mln in new clean energy grants and low-cost loans from a US Department of Agriculture programme for rural America. Tri-State’s new long-term energy plan now calls for 1,250 MW of renewable generating sources and utility-scale battery storage to smooth out supplies from solar and wind generation.
VOLUNTARY
Credits manager – Alcove, a carbon credit inventory management solution provider for project developers, announced the release of its application for Shopify’s commerce platform. Some features of the platform include forecasting and allocating carbon credits, fulfilling upcoming delivery obligations, and incorporating carbon credit production data. The application allows project developers to “seamlessly manage and sell credits” from all types of carbon removal or avoidance projects, said Mars Garza, co-founder and co-CEO of Alcove. (PR Newswire)
Registry rating – Carbon registry ACR is applying to have the Integrity Council for the Voluntary Carbon Market’s (ICVCM) assess ACR’s crediting programme against the Core Carbon Principles, the company said in a press release Friday. Building integrity to build scale is something ACR and the ICVCM have in common, the release argues. The registry said its issued two-thirds of offset project credits for California’s cap-and-trade system.
AND FINALLY…
Pigs might fly – the BBC profiles the efforts of Denmark, a major pork producer, to wean itself off eating meat. The majority of Danes – 57% – say they have no interest in reducing the amount of meat they consume, making it the European nation least interested in cutting back. The Danish government, however, has a plan for change. Denmark is arguably as beholden to the interests of its livestock industry as any rich, meat-consuming nation. As the only European nation with “more pigs than people”, Denmark is arguably as beholden to the interests of its livestock industry as any rich, meat-consuming nation. Yet its “plant-rig” policies have so far staved off serious backlash. Even the right-wing Denmark Democrats, who oppose a possible emissions tax on agriculture, gave their political backing to a grant that supports the plan.
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