CP Daily: Thursday December 7, 2023

Newsletters > CP Daily: Thursday December 7, 2023

CP Daily: Thursday December 7, 2023

Published 02:54 on December 8, 2023 / Last updated at 01:58 on December 9, 2023 / Newsletters

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

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COP28

FEATURE – Complaints over unilateral trade measures threaten progress in crucial climate talks

The perceived injustice of industrialised countries propping up their own clean technology industries with protectionist measures and subsidies is being seized on by emerging economies as a negotiating chip that is complicating COP28 UN climate talks in Dubai, sources at the summit told Carbon Pulse.

Azerbaijan emerges as COP29 host favourite after Armenia gives blessing

Azerbaijan has re-emerged as a frontrunner to host next year’s COP29 UN climate talks after Armenia on Thursday endorsed its neighbour’s bid, thereby removing a key obstacle.

New initiative urges ships to slow down 25% for biodiversity

An initiative has been launched at COP28 to address biodiversity, climate, and pollution with the goal of slowing down ship speeds globally by 25% by 2030.

Australia commits A$150 mln to climate funds

The Australian government has announced it will contribute A$150 million ($98 mln) to two climate mitigation and adaptation funds, as it seeks to support its Pacific Island neighbours at the UN talks in Dubai.

Canadian utility launches first nuclear power offset protocol

A private Ontario-based nuclear company released Wednesday what it claims to be the industry’s first carbon credit methodology for nuclear power generation at COP28 in Dubai.

Non-profits announce jurisdictional REDD+ partnership to help scale forest carbon deals

Several non-profits have signed a jurisdictional REDD+ technical assistance partnership (JTAP) at COP28 to try and scale emissions reductions agreements between forest-rich governments and carbon credit buyers, actively looking to bring countries on board.

AMERICAS

Canada unveils cap-and-trade system for oil and gas emissions

Canada unveiled plans on Thursday for a cap-and-trade system for its oil and gas sector, with the government aiming to introduce reporting requirements from 2026 and set out a 2030 emissions cap, but giving no clear indication on when the market would launch.

First Progress Report shows Canada on track to reach 2030 emissions reduction target

Canada released the first progress report on its 2030 Emissions Reductions Plan (ERP), showing the country poised to reach an interim target in 2026, and expecting additional mitigation actions to help achieve the 2030 goal.

Massachusetts unveils proposed Clean Heat Standard draft framework

Suppliers of building heating oil, propane, natural gas, and electricity in Massachusetts will be subject to a proposed Clean Heat Standard (CHS) as of 2026, the state’s Department of Environmental Protection (DEP) outlined at a technical briefing on Thursday.

US Democrats follow up Republicans with their own CBAM legislation

Democrat lawmakers on Wednesday reintroduced a bill for the US to impose a carbon border adjustment mechanism (CBAM) on energy-intensive imports to help cut CO2 emissions and protect domestic manufacturing, only a month after Republicans put forward similar proposals.

Carbon management firm enrolls 688,000 ha of US forestlands into carbon projects, rebrands

A US-based carbon management company recently enrolled 1.65 million acres (688,000 ha) of industrial American forestlands into its carbon projects, and has rebranded to reflect plans to advance its decarbonisation efforts through land conservation, the firm announced Monday.

WCI Markets: CCA prices inch upward on high volumes, WCAs continue to decline

California Carbon Allowance (CCA) prices ticked upward while Washington Carbon Allowance (WCA) values continued their descent, although both markets saw an increase in volumes throughout the week.

Oregon environment board appoints new deputy director, clarifies rulemaking for fuel suppliers in 2024

The Oregon Department of Environmental Quality’s (DEQ) policy board appointed a new deputy director and approved an amendment to its recent climate rulemaking to clarify the language for covered fuel suppliers at a special meeting on Thursday.

Emissions trading director resigns from US-based hedging management firm

A director of emissions trading with a US-based hedging management firm has parted ways with the company, Carbon Pulse has learned.

EMEA

Rwanda to take share of adjusted carbon credits from projects, rather than proceeds

Rwanda will take a share of carbon credits rather than a share of the profits generated from Article 6 projects that will be correspondingly adjusted (CA) against the country’s NDC climate pledge, it was revealed Thursday by a cookstove developer in the advanced stages of such a deal.

Euro Markets: Carbon posts modest gain as options hedging keeps market close to key level

European carbon prices rallied on Thursday afternoon to come closer to a key options level after bears had beaten back an effort to boost prices in mid-morning amid a modestly bullish auction outcome, while energy markets were firmer for a second day as weather forecasts showed slightly lower temperatures in the offing.

EU’s proposed Net Zero Industry Act moves closer to becoming law

EU nations on Thursday adopted a unified position on the Net Zero Industry Act, advancing the bloc’s proposed response to green industry legislation worldwide and in particular the US Inflation Reduction Act.

ASIA PACIFIC

Indonesia takes another step towards CCS carbon credits

Indonesia has approved a revised plan for the Abadi LNG project, which aims to be the first to offer carbon credits for carbon capture and storage in the Southeast Asian country.

Australian oilers in mega-merger talks

Australia’s two largest oil and gas companies confirmed Thursday they are in talks about a potential merger that would create a massive exploration and production major.

VOLUNTARY

Carbon removal fund agrees biggest-yet offtake deal with enhanced weathering developer

A removals buyers club has sealed its biggest-yet offtake contract, agreeing to pay $57.1 million for the supply of credits over 2024-28 from a developer of enhanced weathering solutions.

New study resolves discrepancies in tropical forest carbon flux measurements

Researchers say they have made a significant step towards understanding the complex role of tropical forests in Earth’s climate system, shedding light on reconciling varying estimates of carbon flux that will allow nations to more accurately evaluate their emissions mitigation efforts.

Let’s get cracking: Researchers use eggshells to decarbonise biogas, boosting energy value

A new study has found that calcium oxide (CaO) derived from eggshells can effectively remove CO2 from biogas and boost its value as an energy fuel while reducing its impact on atmospheric greenhouse gas levels.

BIODIVERSITY (FREE TO READ)

EU sees increased pressure from landowners to sort out OECMs

Private landowners are increasingly pushing for the EU to clarify how and to what extent Other Effective area-based Conservation Measures (OECMs) will be part of the bloc’s biodiversity strategy, a European Commission official told a webinar this week.

Australian carbon project developers partner to lead govt-funded nature positive co-op

Two Australian carbon project developers are partnering with a research group that will soon bid for government funding, the former announced this week.

Incentives to invest in nature must increase, KPMG says

Governments and the private sector must improve incentives to invest in nature to help bridge the financial gap, accounting firm KPMG has said.

Biodiversity Pulse: Thursday December 7, 2023

A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).

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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

Record year – 2023 would be the warmest year on record, as global mean temperature for the first 11 months of the year hit the highest level on record, 1.46C above the 1850-1900 average, according to EU scientists at the Copernicus Climate Change Service (C3S). The temperature for the January-November period was 0.13C higher than the average for the same period in 2016, currently the warmest calendar year on record. November 2023 was the warmest November on record globally, with an average surface air temperature of 14.22C, 0.85C above the 1991-2020 average for November, and 0.32C above the previous warmest November, in 2020, Copernicus added. (Reuters)

Implicitly clear – Diverting the trillions of dollars by which the world subsidises fossil fuel production each year and putting an implicit price on carbon emissions would generate the vast amounts of cash needed to tackle the climate crisis, the head of the International Monetary Fund, Kristalina Georgieva, has said. Governments have been put off explicitly pricing carbon by the potential unpopularity of new carbon taxes, which have become favourite targets of anti-climate politicians and parties around the world, from the US and Australia to Europe and the UK. She said it was possible to achieve the same result – of making high-carbon activities reflect their true costs to society – using regulation, and by cutting the bad subsidies that encourage fossil-fuel use. (The Guardian)

Ali alliance – The International Aluminium Institute (IAI) has launched a new initiative that commits to transparently and publicly track the ambition and progress in greenhouse gas reduction of all its member companies. It has already been backed by major producers including Alba, Alcoa, Alumina Limited, CBA, Emirates Global Aluminium, Hindalco, Norsk Hydro, Mitsubishi Corporation, Rio Tinto Aluminium, Rusal, Sohar Aluminium, and South32. Together these companies produce 221 mln tonnes of GHG emissions a year.

EMEA

More in La Mancha – The UAE’s Masdar and the green hydrogen unit of Germany’s Verbund have signed a deal to explore developing a green hydrogen plant in central Spain with a view to decarbonising Europe’s hard-to-abate sectors. The development will harness the renewable resources of the Castilla-La Mancha region, with the planned plant expected to be operational by the end of the decade. It is intended that the explored plant will produce the fuel using renewable energy generated by solar power plants, potentially including Masdar’s planned gigawatt-scale solar plant in Castilla-La Mancha and wind farms. (RENews)

Fixed price for floaters – The European Commission has approved a €4.12 bln French scheme to support the rollout of renewable offshore wind energy under the State aid Temporary Crisis and Transition Framework. The cash will be deployed via contracts for difference in 2024, providing a 20-year fixed power price to support the construction and operation of two floating offshore wind farms in the Golfe du Lion. The measure will run for a period of 20 years.

Bot slot – The UK government has launched The Manchester Prize, putting up £1 mln to award innovations in artificial intelligence. For the first two years, the prize will focus on solutions to the challenges surrounding energy, environment, and infrastructure. This could include using AI technology to support the transition to electric vehicles by optimising charging methods and reducing household energy consumption to identify targeted interventions like adding insulation, or helping lower costs for consumers by automating energy-intensive processes in manufacturing.

Partners – The Qatar-based Global Carbon Council (GCC), an international carbon credit programme, and the Kenya Climate Innovation Center (KCIC), a social impact organisation focused on climate innovation, have signed an MoU. This agreement, formalised at COP28, launches a collaboration aimed at promoting carbon market actions in Africa, with a particular focus on Kenya. Under the deal, both organisations will work to activate and operationalise Article 6.2 of the Paris Agreement and promote voluntary carbon markets in the region. The partners say their collaboration will empower African nations, especially Kenya, to build resilience and meet their Nationally Determined Contributions (NDCs) under the Paris Agreement. GCC and KCIC plan to organise workshops and training programmes to enhance the understanding and implementation of sustainable practices and carbon market mechanisms in Kenya. This capacity-building initiative is expected to boost Kenya’s efforts in achieving its climate goals and expand GCC’s sustainable solutions across the African region.

ASIA PACIFIC

More to come – China’s Juno Capital has signed a strategic cooperation agreement on forest carbon with the government of Lingqiu County in Shanxi province. The two agreed to work closely together to develop forest carbon projects in the area, though without adding specifics. Beijing-based Juni is increasingly getting involved in the carbon market both domestically and abroad, and last month secured rights to develop a mangrove project in Indonesia.

AMERICAS

House companion – Washington House Representative Mike Chapman has sponsored companion legislation to Senate bill 5783, which was introduced Tuesday and aims to loosen cap-and-trade programme requirements for biofuels in the state. More specifically, the act aims to expand exemptions for biofuels, provide refunds for exempted fuel purchases, and temporarily lower license fees. The next step for the House bill, HB 1887, is to be referred to a committee.

Wind wonder – The US’s first commercial-scale offshore wind project off of Montauk, New York, is now operational, reports CBS. South Fork Wind will generate power for 70,000 homes within weeks, the equivalent of taking 60,000 CO2-emitting cars off the road. Project developers have struggled with inflation and supply chain challenges this year, and Governor Kathy Hochul responded in October with the largest ever investment by a US state in renewable energy after rejecting previous efforts for government support from industry.

Partnership cemented – Cement firm Lafarge Canada has announced a partnership with CarbiCrete, a climate tech company specialising in eco-friendly construction solutions. This collaboration aligns with Lafarge’s green growth strategy and commitment to transforming waste into valuable resources, the companies said. The partnership will be centred at Lafarge’s St. Constant – Montreal East manufacturing cluster. Here, Lafarge will process a steel industry byproduct, typically destined for landfills, for use in CarbiCrete’s innovative carbon-negative concrete block technology. CarbiCrete’s technology, supported by Lafarge’s infrastructure and expertise, allows for the production of cement-free concrete blocks, significantly reducing embodied carbon in concrete by avoiding emissions and removing carbon through mineralisation. CarbiCrete. The partnership also involves developing a new product for customers. CarbiCrete’s patented process produces cement-free, carbon-negative concrete using industrial by-products and captured CO2, abating 150 kg of the gas for every tonne of concrete produced.

VOLUNTARY

Mapping harm – More than 70% of original media reports over the past five years examined by Carbon Brief found evidence of carbon-offset projects causing harm to Indigenous people and local communities, the analysis site reported, after cross-referencing the articles with the world’s most comprehensive environmental conflicts database. Some 43% of the reports examined by Carbon Brief found evidence of carbon-offset projects overstating their ability to reduce emissions. The article is part of a week-long special series Carbon Brief is producing on carbon offsets.

Farming finance – Banks will eventually start to impose higher interest rates on farmers and rural businesses that aren’t achieving satisfactory greenhouse gas reductions, according to Lara Yocarini, a senior Rabobank executive, Bloomberg reports. Banks including Rabobank already offer sustainability-linked loans that require clients to agree to certain targets, which may include emissions, she said. For other customers, the current approach is to educate and work with them to achieve emissions reductions, but ultimately, if they don’t, they are likely to end up paying more. Rabobank commits to get to net zero by 2050, with interim targets set for 2030. Reducing its Scope 3 emissions, which are those of its clients, will be a key driver in achieving those goals.

SCIENCE & TECH

Ghost forests – Mangroves that have been degraded by extreme weather events can leave behind “ghost forests”, which are then colonised by sea grasses, according to research published in the journal Frontiers in Climate. A study of six locations within mangrove ghost forests in Queensland, Australia, examined the environmental conditions that result when a mangrove forest dies. As the root systems degrade, the sediment sinks and seagrasses colonise the newly inundated land. Any remaining root systems aboveground may also attenuate waves, creating a stable environment for the seagrass to grow. Overall, the results suggest that “degraded mangroves may transition to seagrass under future sea level rise scenarios”.

AND FINALLY…

Muddy spud duds – European potato prices are soaring as heavy rains leave spuds mired in the mud, curbing supplies just as demand for the Christmas dinner staple rises. The surge in potato prices is the latest example of a growing number of crops affected by climate change. Futures for the commodity, although thinly traded, spiked in May due to heavy rains. Wet weather has also risked wiping out part of the continent’s sugar beet harvest and has delayed winter grain plantings in France. (Bloomberg)

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