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TOP STORY
Momentum builds for shipping carbon levy as IMO meeting draws to a close
Momentum to introduce a carbon tax on shipping is building after delegates at a UN convention officially endorsed a framework on Friday to move forward with climate measures including the introduction of a levy on emissions.
EMEA
PREVIEW: EU ‘green’ majority to exhale final breath before elections
Time is now up for the political majority that made the European Green Deal possible, with the bloc’s 27 environmental ministers showing more and more signs of disagreement ahead of their summit next week.
EU ETS2 prices seen hitting €200 mark by 2030 -analysts
Prices in the EU’s ETS for transport and heating fuels (ETS2) are expected to surpass those of the existing carbon market as early as 2029, and exceed €200/tonne of CO2 by 2030, according to projections unveiled this week.
Euro Markets: EUAs post fourth weekly gain in a row as traders eye steady cut in funds’ short positions
European carbon prices registered their fourth successive weekly increase after eight losses at the start of the year, as some observers suggested the market was reverting to a familiar recent pattern of rising on Friday ahead of renewed weakness on the following Monday, and others eyed the steady reduction in investment funds’ short positions and speculated whether the recent record bearish bets were in the process of being unwound.
German DAC deployment to come with high costs, extensive resource requirements, researchers warn
Deploying direct air capture technology in Germany and capturing a modest amount of CO2 emissions from the atmosphere would consume a significant amount power, land, and water resources, according to a new study.
AMERICAS
SEC climate disclosure rules reinstated after litigation moved to new court
The US Securities and Exchange Commission’s (SEC) new climate disclosure rules were reinstated by judges at the 5th Circuit Court of Appeals on Friday.
Emitters, speculators add to their holdings across North American carbon markets
Traders added to their overall net holdings across carbon markets in North America amid a recovery in allowance prices from last week’s rout, according to data published Friday by the US Commodities Futures Trading Commission (CFTC).
ASIA PACIFIC
Japan updates carbon offset guidelines to align with international standards, selects latest JCM projects
Japan has updated its guidelines to provide more clarity on the quality of offsets, as the country seeks to align its domestic framework with international efforts to improve the integrity of the voluntary carbon market.
South Korea moves to let securities firm launch OTC brokerage services in ETS
One of the largest Korean securities firms has been designated as an official broker for the country’s national emissions market, as the government seeks to open up the market to more participants.
CN Markets: CEA price holds above 80 yuan, liquidity plummets
China saw liquidity in its compliance carbon market fall sharply over the past week, while permit prices held above the 80 yuan ($11.07) benchmark amid growing optimism about the sectoral expansion of the market.
Thai govt seeks consultation on second climate change bill, with market provisions
The government of Thailand has put out the second draft of its climate change bill for consultation until mid-April even as it will be considered for cabinet approval not before June 2024, with provisions for several market-based mechanisms to drive emissions cuts.
INTERNATIONAL
EU carbon pricing policies could transform, bifurcate global LNG trade -consultancy
The global LNG market is at risk of major transformation and possible bifurcation if the EU extends its carbon pricing policies to include imports of the fuel, according to a major global consultancy.
Stakeholders call on GHG Protocol standards to make comparing corporate emissions accounting easier
The GHG Protocol has published a summary of stakeholder responses on its corporate emissions accounting standards, which includes details on market-based approaches and the use of voluntary carbon credits.
Indigenous advocacy group urges US climate envoy to resist Article 6 development
A US-based Indigenous advocacy group sent a letter this week to US special climate envoy John Podesta urging him to oppose the development of Paris Agreement carbon markets, as communities worldwide debate their merits.
IEA undermining energy security in its pursuit of net zero, say US legislators
The International Energy Agency (IEA)’s emphasis on the energy transition fails its responsibility to provide objective data, said two US Republican lawmakers, who questioned its recent work in a letter addressed to the intergovernmental agency.
VOLUNTARY
Water overlooked in voluntary sector but market potential tops 1.6 bln carbon credits a year, finds report
The total global potential for voluntary carbon credits generated from water-related projects could top 1.6 billion tonnes of CO2 a year, but the sector has been overlooked by project developers and investors, partly because of a lack of methodologies, finds a new report.
Two voluntary carbon market titans to retire this year
Two titans of the voluntary carbon market are retiring this year, Carbon Pulse has learned.
BIODIVERSITY (FREE TO READ)
TNFD co-chair Elizabeth Mrema steps down
Elizabeth Mrema, co-chair of the Taskforce on Nature-related Financial Disclosures (TNFD), is stepping down from her role amid a swathe of other leadership changes at the organisation.
CBD advisory group lists potential centres to support global scientific cooperation
The UN Convention of Biological Diversity (CBD) has published a list of potential regional support centres to promote biodiversity-related collaboration on science, technology, and innovation.
UK standards body lays groundwork for domestic framework on nature markets
The UK national standards body has launched a consultation on a set of overarching principles for domestic nature markets including units representing biodiversity.
Two sites published on English biodiversity gain register without boundary details
The first two areas on the register for off-site biodiversity net gain (BNG) projects in England have faced criticism for excluding the location details of their boundaries.
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CONFERENCES
European Climate Summit – April 16-18, Florence: To kick off its annual regional climate summit series this year, IETA looks forward to welcoming delegates to its flagship ECS2024 event, taking place in Italy. ECS comes at a key inflection point for the region’s carbon market. How will the European carbon market evolve in its next phase, which starts in 2031? Around the world, carbon markets are emerging at the fastest ever pace, with new emissions trading systems being developed from Brazil to Vietnam. More markets may mean more opportunities for international cooperation and linking, and some of these could come to Europe. The health of the voluntary carbon market is also a hot topic this year, as the market works to overcome challenges. Environmental integrity and robust quality assurance are at the top of everyone’s mind, and IETA’s ECS2024 will address these issues as well. To register, simply click HERE to join as a delegate. In-person event.
Next steps for the UK Emissions Trading Scheme – April 22, Online: Hosted by Westminster Energy, Environment & Transport Forum, stakeholders and policymakers will explore priorities for implementation and maximising the carbon market’s contribution toward the UK’s net zero strategy. Discussion will consider policy priorities, challenges for industries, and plans to expand the scheme to include domestic shipping and energy from waste. Sessions will also explore the auction reserve price, the forthcoming CBAM, and strategies to enhance the UK ETS’s efficacy while mitigating negative impacts. Book your place
Carbon Forward Turkiye – May 9-10, Izmir: With the launch of the pilot ETS in Q4 and a burgeoning voluntary carbon market in the country, this event will give attendees an understanding of the significant impact these schemes, as well as the EU’s CBAM, will have on your business. Full conference agenda coming soon. Secure your spot
Argus Asia Carbon Conference – May 13-15, Kuala Lumpur: Join over 200 industry leaders and senior government officials at the Argus Asia Carbon Conference in Kuala Lumpur on 13-15 May 2024. Connect with key players and explore new opportunities in the region as we discuss innovations in carbon technology, advances in voluntary and compliance markets, the impact of CBAM, financing, nature-based project developments, and more. With ministerial addresses and keynote sessions from Petronas and SaraCarbon, this is your opportunity to gain valuable insights on pan-Asia’s evolving carbon markets. Register
Argus Europe Carbon Conference – May 21-23, Nice: Plan your carbon strategy through market-driven decarbonisation solutions at the at the Argus Europe Carbon Conference on 21-23 May in Nice, France, as we examine the EU ETS and other global compliance structures, voluntary carbon markets and their intersection with carbon abatement industries. This year’s agenda covers the integration of the maritime sector into the EU ETS, the impact of Europe’s exported carbon price through CBAM, developments in carbon removal technologies, voluntary certification methods, and developments around diverse, high-quality credits from Verra and many other leading standards. Register your place to explore new opportunities within Europe and globally.
Carbon Forward North America – June 11-12, Toronto: Join us in the Great White North to hear about the evolving carbon pricing and climate policy landscape in North America. Whether you are an emitter, investor, developer, or a new participant in any of the continent’s carbon markets – compliance or voluntary – Carbon Forward North America offers you the opportunity to gain knowledge on both present and future policy developments and market opportunities. Explore the chance to meet the right people or source the right solutions to help you enhance your business prospects or minimise your risk. Come meet the region’s world-leading carbon market experts, compliance players, government officials, investors, project developers, analysts, brokers, and other stakeholders. Agenda to be released soon. To express an interest in speaking or sponsoring, please email michelle@carbon-forward.com
Carbon Forward Expo – October 8-10, London and Online: Save the date! More info coming soon…
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Slippery slope – The water crisis threatens global supply chains as never before, according to new research from CDP. In a report published Friday, researchers found that at least $77 bln is under threat due to water risk in supply chains, with $7 bln at immediate risk. The non-profit said that 50% of large corporate buyers are now engaging their supply chain on water issues. The report focused on 3,163 large companies with an annual revenue of more than $250 mln. These companies disclosed to CDP’s annual water security questionnaire in response to a request from investors, in 2023.
AMERICAS
Not letting LNG go – Some 16 US Republican-led states on Thursday sued the federal government over its ongoing pause on LNG export approvals, Reuters reported Thursday. Republican attorneys general of a coalition of states including Texas, Louisiana, and Florida filed the lawsuit in federal court in Louisiana, arguing that the US Department of Energy’s halt on exports will threaten US economy and weaken US efforts to supply its allies in Europe with LNG as the region seeks to wean itself off piped gas from Russia. The Biden’s pause on LNG export approvals was met with pushback shortly after it was announced, and Republican-controlled US House of Representatives has already passed a bill to lift the halt in the chamber.
Stopped cold – The EPA has finalised a settlement with Resonac America over allegations of illegally importing hydrofluorocarbons (HFCs) into the Port of Los Angeles. This settlement results in the largest penalty ever for such an offence, with Resonac agreeing to pay $416,003 and to destroy 1,693 pounds of the imported HFCs. The illegal imports are said to have occurred on four separate occasions between 2023 and 2024. This action is part of the EPA’s broader initiative to combat climate change by enforcing regulations against the illegal import of harmful refrigerants, marking a significant step both in terms of the penalty’s size and the requirement for the company to destroy the offending substances.
No more fracking – Senate Bill 8357 (SB 8357), introduced in the New York state legislature to extend the existing ban on fracking to prevent the use of CO2 in natural gas extraction, has passed the Senate on Wednesday and is now headed to the governor’s office awaiting signature. Sponsored by Democratic Senator Lea Webb in opposition to Southern Tier Solutions (STS), who planned to circumvent the state’s existing ban on hydraulic fracking by utilising CO2 as an alternative to water-based drilling for gas production. Company officials and STS president Bryce Phillips did not respond to phone and email messages from the Associated Press following the bill’s passage, reported the outlet, extending their silence in recent months amid rising pushback against the firm’s plans.
Declining emissions – A Colorado bill that imposes emissions reporting and reduced production measures on oil and gas operators was amended in the Senate Transportation and Energy Committee and referred to the Senate Finance Committee on a 5-2 vote Wednesday. SB 165 was amended for the Department of Public Health and Environment to propose average annual motor vehicle emission budgets for nitrogen oxides and VOCs for 2025-2050 within the 8-hour ozone Denver metro/north front range nonattainment area. Additionally, it stipulates that the 2030 budget must be at least 10% lower than the 2026 budget, and it should progressively decline every five years from 2030 through 2050.
3 for 3 – South Dakota Governor Kristi Noem (R) signed all three carbon pipeline bills delivered to her desk on Mar. 7, the state legislature updated. HB 1185, HB 1186, and SB 201 were all signed by Noem on the day they were delivered to her desk, although SB 201 was only recently updated as such. Noem declared her support for the bills once they had passed through the South Dakota legislature, following contentious debate regarding landowners’ rights and the future of carbon pipelines in the state.
Forest carbon study – A New Hampshire bill to study nature-based carbon credits generated in-state passed the House floor on Thursday and will now head to the Senate. HB 1709, sponsored by House Representative Eamon Kelley (D), would establish a forest commission composed of lawmakers, agency staff, academia, public, and a conservation NGO to study the effects of forest carbon programmes in-state. The commission would include, but not be limited to: the study of the programmes’ effects on local and state tax revenue; alternative revenue sources; impacts to the forest products industry; trends in local participation; and how forest carbon agreements should be reported to the state.
Pine Tree EV pushback – Maine’s Board of Environmental Protection on Wednesday turned down the multi-state Advanced Clean Car II rule on a 4-2 vote against the proposal, Spectrum News reported. The proposed regulation would require automakers to ensure that 51% of vehicles shipped to Maine were electric by 2028, to be ramped up to 82% by 2032. Opponents of the proposal raised concerns about EV charging infrastructure in the state, and also deemed the 51% target was unachievable as only 6-7% of vehicle sales in the state were EVs.
EMEA
Jaw on the floor – EDF CEO Luc Remont has renewed a call to establish a price floor for Europe’s carbon market to prevent a slowdown in the pace of decarbonisation, Montel reports. “In recent weeks, carbon prices have been very low. If the trend continues, it will lead consumers – including industries – to make consumption choices that favour carbon,” he said in an interview with French media. “The EU intervened in 2022 to curb high power prices, and it is just as legitimate for it to intervene if the price of carbon falls below what is economically rational”, he added, referring to the measures the EU adopted during the 2022-23 energy price crisis.
The heat is on – Clients and financing partners both increasingly demand more climate action from German companies, which respond with a growing emission reduction engagement, according to a survey conducted by state development bank KfW. Around one in three companies (31%) said they faced external pressure for climate action from these stakeholders – this was especially true for larger companies, but an increasing number of smaller ones also reported such demands. 95% of big corporations said last year that clients demanded more climate action or that it was an important topic during discussions about financing, compared to just 28% of micro enterprises. (Clean Energy Wire)
VOLUNTARY
Two for six – Citigroup joins US bank JPMorgan Chase in agreeing to disclose relative levels of financing for low-carbon energy versus fossil fuels, known as its green financing ratio, Energy Monitor reports. The measure is a product of New York City Comptroller Brad Lander’s resolutions filed at the two banks, also filed at Morgan Stanley, Bank of America, Goldman Sachs, and RBC. The resolutions are expected to go to vote at the remaining banks during the upcoming proxy season.
Testing ground – Aker Carbon Capture has been awarded a feasibility study and an eight-months test campaign to explore the capture of emissions from Wacker’s metallurgical-grade silicon production at a plant in Norway. The German multinational chemical group has set a goal to halve its GHGs by 2030 and be net zero by 2045.
AND FINALLY…
Insurance issues – State Farm on Wednesday became the latest insurer to reduce its exposure to California, E&E News reports, days after state officials announced a plan to try to entice insurers to stay in the Golden State despite rising wildfire risk. State Farm said it would decline to renew 30,000 homeowner policies and 42,000 commercial apartment policies. The move comes after the company’s 2023 decision to stop issuing new personal and commercial coverage in California. It cited inflation, exposure to catastrophic disasters, the costs of reinsurance and California’s consumer regulations for the pullback. State Farm’s further retreat is just the latest in a series of decisions by insurers to pull back from California and leave hundreds of thousands of residents with no option but to go to the dangerously bloated insurer of last resort.
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