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TOP STORY
ANALYSIS: UN Article 6 crediting faces “severe” credibility threat, parties to pivot towards voluntary carbon and bilateral trade
After COP28 talks ended in turmoil, UN carbon crediting under the Paris Agreement’s Article 6 provision is now not expected until 2026, with the way forward complicated by political divisions, attention may pivot towards the voluntary carbon market and scaling international trading arrangements.
EMEA
EU legislators agree on due diligence rules that force large companies to set climate neutrality plans
The European Parliament and Council of EU member states have reached a provisional deal on rules setting obligations for large companies to identify and remedy risks to the environment, human rights, and health arising from their value chain, including an obligation for companies to adopt Paris Agreement-aligned climate plans.
EU co-legislators strike provisional deal to redesign the bloc’s electricity market
Co-legislators for the European Parliament and Council of member states struck a deal to reform the EU’s electricity market design early on Thursday morning, aiming to reform the market so as to shield citizens from higher energy prices and enable increased investments in renewable capacity.
Euro Markets: Late selling sends EUAs to new 14-month low as benchmark contract expiry looms
European carbon prices fell the most in nearly three weeks on Thursday, as sustained selling in the afternoon in a lightly-bid market drove prices to a new 14-month low, with some traders left scratching their heads as the front-December contract has just days left before expiry.
Egypt to launch pilot compliance carbon market in Q1 2024 -media
The Egyptian government will launch a pilot of its planned compliance carbon market in Q1 2024, according to local media sources.
UK government backs 11 hydrogen projects to regain ground in global leadership
The UK government has rolled out an updated hydrogen strategy as it plays catch up in the global race to develop the fuel of the future, while shelving plans to trial rolling out hydrogen to heat homes through existing gas pipelines.
Launch of collaborative project to ship and store captured CO2 from south to north UK
Several companies have announced a partnership to ship captured CO2 from an UK ETS-covered gas power plant in southeast England up to northeast Scotland to then pipe onto permanent storage below the North Sea using re-purposed gas pipelines.
Fossil-free iron demonstration plant in Sweden receives grant in key step towards green steel
A first demonstration plant in Sweden for the production of fossil-free sponge iron, a precursor to steel, has received government grant support in an example of a public-private endeavour to clean up the steel industry.
Large French bank to stop financing new fossil fuel projects next year and triple renewables by 2030
France’s second-largest listed bank will no longer finance fossil fuels, it said on Thursday, and will also triple the financing of renewable energy projects by 2030, in a move seen to align with the UN Global Stocktake outcome from COP28.
Omani bank signs MoU to accelerate viability of alternative fuels
Oman Arab Bank (OAB) will advance-purchase carbon credits linked to projects selected by the First Carbon Investments (FCI) platform with the goal of accelerating the viability of alternative fuels, according to a joint statement issued by the companies upon the signing of their MoU.
EU-based forest carbon removal developer secures new funding
An Estonia-based carbon removal platform has obtained €5.5 million in seed investment from a trio of venture capitalist investors, the start-up announced on Thursday.
INTERNATIONAL
FEATURE: Green hydrogen high on political agenda as race kicks off to price international trade
Green hydrogen will still be a blip in the world energy mix by the end of the decade, but the US, China, and the EU have locked horns in a high stakes race for supremacy that could decide whether the dollar, the yuan, or the euro becomes the international trading currency of the fuel of the future.
Carbon standard partners with platform to boost Article 6 market knowledge
A carbon crediting standard has teamed up with an intelligence platform to help stakeholders understand and navigate new regulations and policy changes affecting the carbon market, including those underpinning Article 6 of the Paris Agreement, they said Thursday.
ASIA PACIFIC
NZ’s Climate Commission urges new govt to sort out ETS in final advice on second emissions budget
New Zealand’s Climate Change Commission (CCC) has provided its first set of advice to the newly elected conservative government, saying it is not on track to meet its 2030 climate goals, and has urged it to resolve underlying issues with its emissions trading scheme.
Major Japanese power company announces nature-based carbon investment alongside LNG contract
A major Japanese power company has inked an agreement with a global commodity trader for the supply of liquefied natural gas (LNG) alongside investment in a nature-based carbon project in Australia, which it said was the first deal of its kind in Japan.
Consortium seeks GHG acreage in Australia for CCS
A group of companies said Thursday they have bid to explore several of the 10 areas made available for carbon capture and storage location exploration by the Australian government earlier this year in a bid to establish themselves in the emerging Asia-Pacific CCS value chain.
Japanese companies team up with regional governments to create forest-based offsets
A consortium led by a Japanese bank has teamed up with two regional governments for the development of forest-based carbon credits under the domestic J-Credit programme, the companies announced Thursday.
Greenpeace takes oil and gas major to court over alleged carbon offset greenwashing
Greenpeace Australia Pacific has filed a lawsuit against a major oil and gas company over claims the company has made in connection with its use of offset credits.
Australia Market Roundup: Regulator downgrades annual ACCU issuance projections, draft energy plan sees coal plants retire faster
The Clean Energy Regulator has revised down its annual issuance forecast of Australian Carbon Credit Units (ACCUs) slightly, as a draft plan by the country’s electricity market operator sees coal-fired power stations retire faster than expected.
VOLUNTARY
Swiss DAC company, global consulting firm sign 15-year CDR offtake deal
A Zurich-headquartered direct air capture (DAC) company and a US-based consulting firm have signed a 15-year agreement that entails the purchase of tens of thousands of CO2 removal (CDR) credits by the latter, in a move the two say is intended to help scale the nascent technology.
Microsoft signs carbon removal offtake agreement with biochar producer
Tech giant Microsoft has collaborated with a biochar producer for large-scale removal of carbon emissions with credits to be delivered within the next six months, the company announced.
Another major airline steps into carbon removal market
A major airline has agreed to purchase carbon dioxide removal (CDR) credits as the hard-to-abate sector steps up efforts to meet next zero emission targets.
Verra advances work on new rice farming carbon credit methodology following CDM controversy
Verra has initiated the development of a new Verified Carbon Standard (VCS) methodology to quantify greenhouse gas emissions from rice production systems, replacing the popular UN CDM protocol that prompted integrity concerns earlier this year.
Record investment, revenue in clean cooking sector in 2022 -report
The clean cooking sector last year reached record levels of investment and revenue, according to a report by the Clean Cooking Alliance (CCA).
AMERICAS
British Columbia unveils first sub-national sustainable aviation fuel mandate
British Colombia will require an escalating amount of sustainable aviation fuel (SAF) to be incorporated into its jet fuel mix, according to low carbon fuel standard (LCFS) updates released this week.
Canadian energy major invests C$21.2 mln in carbon streaming joint venture
A Calgary-headquartered oil and gas company plans to acquire approximately a quarter of shares in a joint venture that focuses on investing in nature-based carbon credit projects, the firm has announced in a move intended to expand the latter’s number of pipeline projects.
WCI Markets: CCAs within striking distance of $40, WCAs continue to recede after Q4 sale
California Carbon Allowances (CCA) continue their ascent through the week testing the $40 level where outsized option open interest lay ahead of Friday’s option expiry, while Washington Carbon Allowances (WCA) declined through a week that saw Q4 allowance sale results surprise market participants.
US-based exchange operator pivoting cryptocurrency trading tech towards carbon markets
A major US-headquartered exchange operator Nasdaq is pivoting blockchain technology originally developed for cryptocurrency trading towards carbon markets.
BIODIVERSITY (FREE TO READ)
FEATURE: Nature takes ‘centre stage’ – what COP28 meant for biodiversity
With nature-related announcements and outcomes firmly in the spotlight at COP28, stakeholders have taken stock of the outcome from the Dubai conference and what it may mean for the global biodiversity crisis.
MRV Collective relaunched as Nature Tech Collective
Measurement, reporting, and verification initiative MRV Collective has been relaunched as non-profit Nature Tech Collective to underline its change in focus towards nature technology.
Biodiversity Pulse: Thursday December 14, 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).
COMMENT
Westpac says no to deforestation – others will soon have to
All Australian banks and investors will soon need to make zero-deforestation commitments because it is increasingly well known that Australia is a deforestation hotspot, and this is attracting the scrutiny of legislators, consumers, and investors, the Wilderness Society writes.
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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
EMEA
Enlargement approvals – The EU agreed on Thursday to start accession talks with EU candidates Ukraine and Moldova while granting formal candidate status to Georgia, Reuters reported, adopting the European Commission’s recommendations in a process that can take a decade. Read Carbon Pulse’s reporting on the requirements for the nine recommended EU candidates, which include alignment with the bloc’s climate policies, including its ETS.
Leaking responsibility – The major gas leak last year in the Baltic Sea from the sabotaged Nord Stream pipeline caused Sweden’s annual territorial GHG emissions to rise by 7%, the country’s Environmental Protection Agency said on Thursday, Reuters reported. The pipes that pumped natural gas from Russia to Germany were ruptured in explosions in September 2022. The UN shortly after said the ruptures led to probably the biggest single release of methane on record, after a big plume of concentrated methane was detected.
ASIA PACIFIC
A long break – The Japanese government will offer tax incentives for a decade to boost production in five strategically important areas including electric vehicles and high-tech chips to attract big-ticket investments from the private sector, Reuters reports, citing an outline of the government plan. The scheme, aiming to provide tax benefits for projects that are difficult to reach profitability, will include 400,000 yen ($2,755) for each battery EV and hydrogen fuel-cell car. Japan’s ruling Liberal Democratic Party and the coalition Komeito party will include the tax breaks in the fiscal 2024 tax reform framework, which is set to be finalised on Thursday, according to the report.
AMERICAS
Cap-and-trade cash – According to state data published Thursday, the state of California received over $1.4 bln in proceeds from its cap-and-trade programme in Q4 of 2023. All such proceeds are deposited into the California Greenhouse Gas Reduction Fund (GGRF). Additionally, almost $103 mln went to publicly owned utilities, while just over $682 mln went to investor-owned utilities in the fiscal fourth quarter, which ended in November.
INVESTMENT
Ampliphi acquisition – Carbon credit developer and intermediary Climeco announced Thursday that it has acquired circular economy platform Ampliphi and its plastic action programme, the Plastic Scorecard. Founded in 2021, Ampliphi and its integrated suite of solutions enable companies to combat plastic pollution and manage their impact by analysing circular and plastic performance, developing mitigation strategies, and simplifying reporting and communications, according to the release. Meanwhile, the Plastic Scorecard was designed to promote transparency in corporate plastic action, as members commit to measuring their baseline, setting actionable targets, and transparently communicating their progress.
SCIENCE & TECH
Nerd alert – CTrees has enhanced its Land Use Change Alerts (LUCA) system, a free forest monitoring tool, with two significant updates. LUCA now allows monitoring specific areas using a GeoJSON description. GeoJSON, an open standard format for encoding geographic data, enables users to specify complex geometries for monitoring. This feature enhances the tool’s flexibility and usefulness, particularly for those needing detailed alert data for project sites or specific boundaries. LUCA has also integrated lower-level administrative area data from the Database of Global Administrative Areas (GADM), facilitating more localized monitoring of land use activities. This addition is crucial for regions like Cameroon, where local land use plans are often designed and implemented at the commune or sub-district level. LUCA operates on Google Earth Engine and offers deforestation, forest degradation, and other disturbance alerts across all forest biomes, including tropical humid, tropical dry, temperate, and boreal forests. The alerts are based on radar data from the ESA Sentinel-1 mission, which provides reliable, weather-resistant information approximately every two weeks, with a minimum mapping unit of 0.05 hectares. The tool’s calculator feature enables users to analyse trends in alerts over time, displaying data from 2018 to the present in an easy-to-understand chart format. CTrees said these updates significantly improve LUCA’s utility for a wide range of users, from environmental researchers to policymakers and conservationists, by allowing more precise and locally relevant forest monitoring.
AND FINALLY…
Just don’t breathe then – The UK population collectively breathes out about 1,100 tonnes of the greenhouse gases methane and nitrous oxide every year, according to one key finding from a study by researchers from the UK Centre for Ecology and Hydrology. They said the exercise was useful to help learn more about the many small emission sources required to complete our understanding of global processes. The researchers stressed that CO2 in human breath is essentially “carbon neutral”, as animals consume fuels like sugars and fats, converting them into water and the CO2 we then breathe out. This aligns with photosynthesis, where plants convert sunlight and CO2 into the food we eat. Carbon in and carbon out are balanced, so our exhalation contributes no more to climate change than we mitigate through growing crops. And it means you can’t generate offsets by holding your breath. (The Conversation)
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