Newsletters > CP Daily: Tuesday February 6, 2024

CP Daily: Tuesday February 6, 2024

Published 00:43 on February 7, 2024  /  Last updated at 07:04 on February 7, 2024  / /  Newsletters

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

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TOP STORIES

EU Commission plans for 280 Mt of carbon capture by 2040

Reducing the EU’s emissions by 90% by 2040 will call for around 280 million tonnes of CO2 to be captured, the European Commission said on Tuesday in its first, long-awaited strategy for capturing, transporting, trading, permanently storing, and using carbon.

EU co-legislators reach provisional deal on net zero industry act

The European Commission, European Parliament, and Council of EU states reached a provisional political agreement on Tuesday to produce 40% of the bloc’s annual needs for net zero technologies domestically by 2030, defining a list of strategic and clean manufactures on which to focus.

Brussels backs off agriculture emissions cuts in recommended 90% target for 2040

The European Commission on Tuesday recommended that the EU aim to cut emissions by 90% by 2040, but backed away from contentious measures to decarbonise agriculture, as farmers protested on the doorstep of the European Parliament building where the announcement was made.

VOLUNTARY

Voluntary carbon credits could near $250/t by 2050, as 2024 seen as ‘make or break’ year for market -analysts

The voluntary carbon market is at a crossroads, with 2024 emerging as a crucial year that could either propel the market towards a valuation of over $1.1 trillion annually by mid-century or steer it towards its potential collapse.

Tanzania project applications hit 35 as carbon trading interest grow

Tanzania has received applications for the launch of 35 carbon credit projects and expects to earn some $1 billion from the market, a senior government official has said.

NextEra-backed carbon removals startup secures Series A funding

A Los Angeles-based company developing hybrid direct air capture (HDAC) technology capable of capturing both carbon and water simultaneously has closed a Series A funding round, enabling it to grow its team and asset base.

INTERVIEW: Energy efficient electrolysers highly prized as access to renewable energy tightens

A producer of components for highly efficient electrolysers says that those able to use renewable energy more efficiently will be greatly valued as access to clean energy becomes increasingly constrained.

Corporate climate disclosure on the rise, but few firms hitting top marks, finds report

Just under 400 companies have been acknowledged as leaders in environmental disclosure, as part of an annual report from a non-profit, though very few made the top grade.

US carbon marketplace startup releases livelihood impact index for smallholder farmers

A California-headquartered startup released Tuesday a methodology designed to measure the impact of carbon credit projects on the livelihoods of smallholder farmers.

European carbon firms ink biochar purchase agreement

A carbon management platform has partnered with a biochar developer for the purchase of 4,500 tonnes of removals from a project in India.

EU carbon removals accelerator advances eight startups to next phase

A European accelerator for innovative carbon dioxide removal (CDR) technologies has moved eight startups to its next phase, it said Tuesday.

EMEA

European fossil fuel electricity generation falls to record low in 2023 -report

Renewable sources are increasingly forming the backbone of the EU power mix, with the region’s fossil fuel electricity generation falling to record-low levels last year, according to a report published on Wednesday.

Germany moves again to prop up steel transition amid global competition, protectionism debate

The German government has pledged €1.3 billion to support a large steelmaker with its emissions reductions efforts, as climate transition risk and high costs continue to prompt EU member states to confront challenges with keeping heavy industry afloat.

Vattenfall reports drop in ETS-covered fossil generation in 2023

Swedish state-owned utility Vattenfall reported a significant drop in generation from ETS-covered fossil power in 2023 in annual results on Tuesday, as well as a fall in profit due to sliding electricity prices during what it described as a “turbulent” year.

BP buys back shares to boost value while lowering energy transition spend

BP has ploughed more profits into buying back shares while spending less on clean energy in 2023, the company revealed Tuesday in annual results.

Access to capital hampering UK’s corporate decarbonisation efforts -report

Energy security and regulation are the main drivers of efforts by UK companies to decarbonise, but one of the main barriers is access to capital investment, according to research published on Tuesday.

Euro Markets: EUAs gain amid see-saw trend around key technical levels as market eyes auction gap

European carbon allowance prices made robust gains on Tuesday after the market reacted sharply to the day’s auction, clearing recent psychological and technical levels as traders anticipated the first gap of the year in the programme of daily EUA sales and weekly Commitment of Traders data.

ASIA PACIFIC

Australian carbon tech start-up raises A$600,000 in pre-seed funding

An Australian carbon project tech company has sourced A$600,000 ($389,000) in pre-seed funding from venture capital firms to go towards its development and expansion plans in the voluntary carbon market.

China to conduct research on railway-related offset methodologies

China is planning to conduct research on offset methodologies for projects implemented in the railway sector, as the government aims to reduce transport emissions through market-based mechanisms.

China biochar has great negative emissions potential, though market-based mechanism needed -research

Utilising biochar production could help China meet its climate targets, though the inclusion of such projects in national carbon markets is needed to unleash the potential of the industry, a study has found.

AU Market: ACCU prices inch higher as outlook says market well-supplied for the rest of decade

The price for Australian Carbon Credit Units (ACCUs) has crept higher after a flurry of spot trades, however the market is expected be awash with credits until the late 2020s according to a bank’s analysis.

AMERICAS

Industry criticises proposed reporting rules under Massachusetts’ Clean Heat Standard

Industry stakeholders criticised proposed amendments to reporting requirements under the state’s draft Clean Heat Standard (CHS) framework in a webinar Tuesday, arguing they were overly burdensome on business.

South Dakota House committee approves two carbon pipeline bills

The two bills, approved Monday by the House Commerce and Energy Committee, establish protocols for landowners and carbon sequestration pipeline companies following the denial of permits to two CO2 pipelines by the state’s Public Utilities Commission (PUC) last year.

North America’s largest carbon project developer launches marketplace

North America’s largest carbon project developer will launch a digital marketplace where it will exclusively sell its own carbon credits, the company announced on Tuesday.

Current reporting frameworks aid compliance, but prepare for evolving climate regulations -experts

A discussion regarding the growing landscape of climate regulations around the world saw panelists consider the implications of the rise in mandatory disclosures, while experts laid out best practices for companies in a webinar on Tuesday.

Unique tools used to monitor leakage from CO2 sequestered under US lake

Scientists at a US university have deployed research buoys to independently monitor a carbon capture and storage (CCS) project that pumps CO2 under a lakebed, in an attempt to allay local opposition to the project.

INTERNATIONAL

Better grades of iron ore needed for newer, cleaner steel making processes -report

As the steel sector moves to decarbonise and shifts from coal-fired blast furnaces to cleaner technologies, higher grades of iron ore will be needed, a think tank said Monday.

BIODIVERSITY (FREE TO READ)

Carbon Pulse ramps up news coverage ahead of crucial year for biodiversity

Carbon Pulse has hired two biodiversity market and policy correspondents to strengthen its coverage ahead of what will be a busy and critical year for this beat, while also adding to the team of reporters covering carbon markets and climate policy in the EMEA region.

GEF Council approves $916-mln spending on environment as biodiversity climbs the agenda

The Global Environment Facility (GEF) Council has approved a $916-million spending package on efforts to tackle biodiversity loss, nature degradation, climate change, and pollution, as its meeting in Washington is now set to open discussions on the governance of the Global Biodiversity Framework Fund.

Biodiversity offsetting incentivises ‘regulated destruction’, report warns

Biodiversity offsetting is failing to protect nature while enabling companies to carry out environmental destruction and human rights violations, a report has warned.

Wales pitches duty for ministers to protect biodiversity

The Welsh government is consulting on whether to introduce a duty for ministers to protect biodiversity, through embracing targets such as becoming nature positive.

EU Commission withdraws divisive pesticides bill

The European Commission has announced the withdrawal of the Sustainable Use Regulation (SUR), as the European Greens call for a new strong proposal to slash the use of pesticides in agriculture.

Argentina’s new law to compromise glaciers, biodiversity -media

The recently passed Omnibus Law, introduced by Argentina’s new president, would compromise glaciers and periglacial zones with strong repercussions for biodiversity, a scientist specialising in the subject told local media.

Biodiversity Pulse: Tuesday February 6, 2024

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

Nocturnal news – We have implemented a ‘dark mode’ feature on our website aimed at those who prefer to consume a bit less electricity (or use up a bit less mobile/tablet battery life) while reading our news or who find our all-white background a bit hard on the old eyes.  Just look for the sun/moon button to toggle between light and dark modes.  For desktop users, you can also drag and drop that button to your preferred location on your screen.

INTERNATIONAL

Evolving E&P – Risks posed to exploration and production (E&P) in the oil and gas sector come from varied corners in 2024, from the EU’s commitment to reducing emissions to meet ambitious transition targets, to Canada’s continued drive to tighten emission regulation, writes S&P Global. Meanwhile, polls in the EU (June), the US (November), and most likely in the UK mean energy prices and climate change policies are going to be in the spotlight and will be used to further polarize electorates. In the US, Biden will likely leverage his climate change credentials to appeal to young voters, while any Republican campaign will likely trumpet American hydrocarbon supremacy instead. In the UK, the implications of a possible change in government for E&P could be even greater, seeing as Labour’s Keir Starmer has consistently promised to put an end to new licensing in the North Sea should his party come to power. In the EU, an emerging narrative that supports low-carbon oil and gas production in the North Sea is gaining currency in the wake of the war-induced energy crisis in Europe and green protectionist policies like the NZIA and CBAM, while in North America, the prospect for significant regulatory changes could shake up resource governance.

EMEA

Keep us in the loop – MPs are calling for more say on UK government plans to achieve emissions cuts in the run-up to 2050, Bloomberg reports. The country is falling behind on many of the measures identified by the independent Climate Change Committee as critical to meeting its net zero by 2050 goal, with Prime Minister Rishi Sunak rolling back several of the government’s green agenda plans last year. “MPs should have the opportunity to scrutinize robustly the policy proposals put forward to meet the government’s climate goals,” Philip Dunne, chairman of the Environmental Audit Committee, said in a statement Tuesday. The UK is now considering its carbon budget for the period 2038-42.

EV charging – The UK’s Department for Transport has announced new measures to accelerate the installation of EV chargepoints, including by providing grants for schools and nurseries and funds for local authorities, Edie reports. This is part of the government’s Plan for Drivers, a 30-point plan presented in October to speed up by the rollout of EV chargepoints. The government aims to boost the number of public charging points to 300,000 by 2030, from around 53,000 today. It has also launched a consultation to look at other ways to increase installations.

Committed to the course – Keir Starmer of the UK Labour party re-opened talks of spending £28 bln a year on green investment during an interview broadcast on Times Radio, the Guardian reports. It had been said by party sources recently that Starmer and shadow chancellor Rachel Reeves were planning to ditch the pledge, however the recent comments by Starmer are being welcomed by environmental advocates as a recommitment at a time when other senior party figures had declined to use the figure. “We’re going to need investment, that’s where the £28 bln comes in. That investment that is desperately needed for that mission,” said Starmer. “You can only understand the investment argument by understanding that we want to have clean power by 2030 … We need to borrow to invest to do that. That’s a principle I believe in and I’m absolutely happy to go out and defend,” he said on Times Radio. Opposition to watering down the commitment has come from Labour MPs from the party’s left as well as business leaders such as Jurgen Maier, the former UK head of Siemens.

A govt like you, should wear a warning – The leader of Germany’s main industry association has slammed the German government’s energy policies as “toxic”, in a sign of declining business confidence in chancellor Olaf Scholz’s stewardship of the economy, the FT reports. Siegfried Russwurm, head of the BDI, told the newspaper that Germany’s climate agenda was more dogmatic than any other country, and the country’s decision to phase out nuclear energy and coal and switch to renewables was placing businesses in Europe’s largest economy at a disadvantage to those in other industrialised nations. “Nobody can say with any certainty today what our energy supply will look like in seven years’ time, and that’s why no one can say how high energy prices will be in Germany then,” he was reported as saying. “For companies that have to make investment decisions, that is absolutely toxic.” His comments come at a time of growing concern about the outlook for Germany, which was the world’s worst-performing major economy last year, hit hard by high interest rates, low export demand, and high energy prices triggered by Russia’s invasion of Ukraine in 2022. The country moved to prop up a large steelmaker this week, to help with its energy transition.

Plans on hold – Many projects to use waste heat from data centres have been put on hold due to obstacles delaying or preventing projects such as technical challenges, economic viability, and lack of demand, finds a survey by the German Industry Initiative for Energy Efficiency (DENEFF). The organisation urges policymakers and market stakeholders to bring suppliers and consumers together for the utilisation of waste data centre heat. The German government hopes to make better use of data centre waste heat as part of its digitalisation strategy and energy efficiency act.

Carbon footprinting – China’s LuoKung Technology has signed an agreement with Uganda to deploy a Digital Measuring, Reporting, and Verification (DMRV) platform to measure the African nation’s carbon footprint. The climate tech company will use satellite imagery, remote sensing, and machine learning technologies to provide carbon neutrality data services and natural resources asset management to assess and monitor Uganda’s carbon reserves. The MOU underscores a shared vision to quantify Uganda’s total carbon assets, with the launch of a carbon asset exchange in Kampala to facilitate carbon asset trading among African nations and asset owners. (Citizen Digital)

ASIA PACIFIC

Renewables tug-of-war – Pro and anti-renewables group went head-to-head in Australia, as an anti-renewables rally was held in Canberra featuring prominent Liberal and National Party MPs including former Deputy PM Barnaby Joyce, Matt Canavan, and Keith Pitt. The “Rally Against Reckless Renewables” rally was attended by some 300-500 people, according to Australian Associated Press, pushing for a federal inquiry into the rollout of renewable energy infrastructure such as offshore wind and transmission lines, some of which has seen pushback by local communities. In response, renewable energy groups such as the Clean Energy Council ran an advertising campaign in major newspapers and media outlets on the same day. They argued anti-renewable advocates were risking some 450,000 construction jobs expected to come from the sector by 2030. CEC CEO Kane Thornton said in a speech Tuesday that there were people attempting to divide the country on renewables by spreading lies and misinformation. Counter rallies by communities and unions supporting renewable energy developments in their area have also been held in recent days.

New partnership – Japan’s Chiyoda and Toyota Motor have agreed to jointly develop a large-scale electrolysis system through a strategic partnership as they seek to expand hydrogen production at home and abroad, according to a company statement. Under the current plan, Toyota will provide mass-production technologies for electrolysis cell stacks, while Chiyoda will be responsible for plant design and construction. The two companies will introduce an electrolysis system in the Hydrogen Park at the Toyota Honsha Plant in FY2025, the statement said.

Biochar potential – Japanese biochar project developer Towing has inked an agreement with the government of Toyohashi city to encourage sustainable agricultural practices in the country, it announced Tuesday. The two parties will promote the use of Towing’s soil conditioners and utilise biomass from rice husks and livestock manure, according to a statement. While the release does not clarify whether the new partnership will involve credit-generating business, Towing last year already received approval to run farmland-based biochar projects under the domestic J-Credit scheme.

AMERICAS

No cap, no problems – The government of Alberta released a formal response to the federal government’s proposed emissions cap on the oil and gas industry in a technical submission published Monday, which denotes the cap as not realistic nor effective and ultimately unconstitutional, signed by Rebecca Schulz, Alberta minister of environment and protected areas. The 28-page document outlines the proposed cap as a violation of the Canadian Constitution with negative impacts on domestic industries as well as global implications on trade and energy security. The document also notes of technical flaws in the proposed framework, including data assumptions and an undermining of Alberta’s emissions efforts.

Municipal efforts – Minneapolis City Council Member Robin Wonsley looks to increase the city’s carbon emission fees mandated by the Pollution Control Annual Registration Program, the Star Tribune reported Monday. The programme currently sees 5,300 entities, largely commercial and industrial facilities, pay fees for pollution ranging from sewage discharge to gasoline storage. Details are expected to be released in the coming months.

Mississippi turning (green) – The Mississippi Department of Environmental Quality (MDEQ) is currently developing the state’s climate action plan, considering ideas such as increasing solar capacity, electrification of trucks and school buses, using biofuel, and energy efficiency upgrades through building codes, reported Mississippi Today on Tuesday. The plans were galvanised by funding via the Inflation Reduction Act, which sees the Environmental Protection Agency give states $3 mln each to develop an initial climate action plan by March, including an inventory of GHG emissions, a list of measures to reduce emissions, and an analysis of benefits for low-income and disadvantaged communities. By 2025, it also requires a comprehensive plan for specific projects and long-term goals for reducing emissions by 2050. MDEQ is currently inviting the public to submit ideas and feedback through an online survey.

SAF in WA – Washington could require airport operators to make sustainable aviation fuel (SAF) blends available to non-commercial, private jet owners, with the ultimate goal of having all jet owners in the state use SAF, after Senate Bill 6114 passed the Senate Transportation Committee on Monday. Fuel blends must include a minimum of 10% SAF, and the state’s Department of Ecology would determine timelines of a full transition to sustainable fuel. Sponsored by Senator Marko Liias (D), SB 6114 will now head to the Senate where it awaits further vote.

Bill blocked – Senate Bill 6052, which aimed to impose new transparency rules on the industry, lapsed in the Senate’s Ways and Means Committee amid concerns over its $15 mln cost and the state’s ability to protect confidential data collected from firms, My Edmonds News reported Tuesday. An analysis of the bill’s projected costs found the Washington Utilities and Transportation Commission would require $7.2 mln to set up and staff the new division, and an additional $2.8 mln would be needed by the state’s consolidated technology services agency to protect corporate data and other sensitive information. SB 6052 would have mandated oil companies to report data on pricing, profit, and transactions to the commission.

VOLUNTARY

Bill’s bricks – Graphyte, a startup supported by Bill Gates, is set to launch what could become the world’s largest carbon removal facility in southern Arkansas, E&E News reports. This facility, named after the Loblolly pine tree, will utilise carbon-rich sawdust and other woody waste from nearby paper mills to produce biomass bricks. These bricks, capable of storing carbon underground for centuries, are expected to remove 15,000 tonnes of CO2 from the atmosphere by the end of this year, with plans to increase capacity to 50,000 tonnes in 2025. If successful, Graphyte says it will become a leading figure in the carbon removal industry, amidst fierce competition from other startups and established companies, some of which have received significant financial support and have attracted big name corporate clients including American Airlines. Graphyte says its rapid deployment and cost-effective pricing at $100/t differentiate it from competitors, whose services can cost upwards of $500/t. The company’s process benefits from the simplicity of using photosynthesis for carbon capture, involving the conversion of papermaking waste into bio-bricks for burial. However, Graphyte is still awaiting a landfill permit to bury the bricks, expected to be approved soon.

Another exchange – Neutral, a tokenised trading project, and DLT Finance, a German brokerage firm, have collaborated to launch a blockchain-backed exchange for carbon credits. The firms say their exchange is notable for being the first of its kind to receive regulatory approval from Germany’s BaFin.  It aims to facilitate businesses in offsetting their carbon footprint through investments in forests and renewable energy products. This platform offers a user-friendly experience that aims to ease away the complexities of blockchain technology for its users. The 10 commodity trading houses and brokers currently being onboarded will interact with a platform akin to traditional commodities exchanges, the firms said, offering improved liquidity for large-scale trades and eliminating the need for direct engagement with blockchain specifics or decentralised exchanges. (Coindesk)

More biochar – Carbon market firm Grain Ecosystem announced a number of partnerships to support investors and project developers in carbon removal on its Grain platform Tuesday. The firm has partnered with biochar consultant GECA Environnement, biochar materials manufacturer Arti, and integrated the Puro.earth and Verra’s VCS methodologies onto its platform.

INVESTMENT

First to quit – US lender Blue Ridge Bankshares has become the first to leave the UN-backed Net-Zero Banking Alliance (NZBA), a global coalition of banks committed to reducing carbon emissions from their lending and investment portfolios to zero by 2050. The bank cited the need to prioritise its financial health after facing challenges related to the US regional bank crisis. Blue Ridge’s stock has declined by 85% due to issues such as non-performing loans, restatement of earnings reports, and regulatory scrutiny of its partnerships with financial technology startups. Following a strategic review, the bank decided not to renew its NZBA membership, Reuters reports. Probes into banks’ membership of NZBA and other climate groups by Republican politicians opposed to limiting the financing of fossil fuels did not factor into Blue Ridge’s decision, the spokesperson said. NZBA signatories agree to set emission-reduction targets within 18 months of joining and publish their progress.

SCIENCE & TECH

Fearing the worst – The world may blow past the 2C climate change threshold by the late 2020s — almost two decades earlier than current projections — according to a new study into sea sponges published in the journal Nature Climate Change. Scientists still have no consensus on the amount of post-industrial warming, with a recent analysis using the US National Oceanic and Atmospheric Administration’s (NOAA) 2023 dataset suggesting Earth had warmed by 1.34C above the 1850 to 1900 average, while data from the UK Met Office placed it at 1.54C. So in search of a better record of 19th Century temperatures, researchers behind the new study looked at a sponge species called Ceratoporella nicholsoni found in the Caribbean Sea, from which scientists are able to measure 300 years of temperature records in cross-sections of their bodies. The results of studying multiple sponges from different depths suggest that warming began in the 1860s, about four decades earlier than the IPCC estimates. By 1990, they found, global temperatures had increased by 0.9C compared with before their newly defined pre-industrial era. In comparison, the IPCC estimates 0.4C of warming by this time. The study finds that if current rates of heating continue, 2C warming will be reached by the end of the 2020s, with 2.5C of warming by 2040.

Space age science – NASA will launch a nearly billion-dollar satellite on Feb. 7 to monitor Earth’s health on an epic scale, from marine biology to atmospheric carbon. The spacecraft called PACE (Plankton, Aerosol, Cloud, Ocean Ecosystem) will help scientists better understand the oceans and atmosphere, and help to influence decisions on how to protect the planet from changing weather patterns. It will provide a better understanding of the exchange of carbon between Earth and atmosphere – as the more carbon in the atmosphere, the more heat is trapped. Liftoff for the satellite is scheduled for 1:33 AM EST, with the spacecraft launching atop a SpaceX Falcon 9 rocket from Florida’s Cape Canaveral Space Force Station. Liftoff can be watched directly from the NASA website.

AND FINALLY…

Greenhushing is so 2023 – Big businesses are delaying the implementation of net zero policies, a new phenomenon dubbed “greenstalling”, due to fears of criticism and public scrutiny over their environmental efforts. A survey conducted by the Carbon Trust, involving 400 businesses across the UK, Germany, Sweden, the Netherlands, and Mexico, revealed that over a quarter of companies are hesitant to adopt net zero strategies. This hesitation stems from concerns over being accused of greenwashing – making misleading claims about their environmental impact – and the challenge of balancing green targets with other business priorities. The survey highlighted a state of “analysis-paralysis” among businesses, where the desire to correctly implement net zero policies becomes a barrier to action. The Carbon Trust advises companies to start their climate action journey with credibility, honesty, and transparency, emphasizing the importance of reducing emissions actively and decarbonising value chains for long-term survival and success in a transitioning economy away from fossil fuels. (Telegraph)

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