Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here
WEEKEND READS
PREVIEW: Observers call for “reset” in Article 6 talks in Bonn, with UN carbon trading technicalities to take centre stage
After chaotic scenes in Dubai at COP28, observers have called for calm on Article 6 talks taking place during a crunch UN intersessional climate summit in Bonn this week, with the technicalities of how to organise sovereign carbon trading rules expected to come into focus.
PREVIEW: Mexican presidential candidates offer options towards national decarbonisation
Candidates in Mexico’s presidential election – to be held this Sunday – have presented differing approaches to ramping up the country’s climate ambitions.
EMEA
EU’s Market Stability Reserve to withdraw another 267 mln permits from ETS starting Sep. 2024
Almost 267 million carbon allowances will be withdrawn from the EU ETS over the 12 months starting this September and inserted into the Market Stability Reserve (MSR), the European Commission announced late Saturday in its annual ‘TNAC’ update.
INTERVIEW: Chief EU ETS lawmaker ‘concerned’ about de-industrialisation on path to 2030
Peter Liese, a German conservative who was the European Parliament’s speaker on the EU’s Emissions Trading Scheme (EU ETS) in the current five-year mandate, expressed concerns that Europe will lose its industry as it gets closer to reaching its 2030 climate goals.
After 50% rally, EU carbon prices seen taking breather on long-term march higher -bank
European carbon prices could “take a breather” after rallying 50% from their recent low, analysts at a major investment bank said this week, though they maintained their bullish long-term view.
ArcelorMittal gets €1.3 bln to decarbonise German steel production
Steel production company ArcelorMittal will be handed over €1.27 billion in subsidies to decarbonise its production at two plants in Germany, the country’s government announced on Thursday.
National court rulings back stronger consumer protection against carbon neutral claims -study
An analysis of 22 rulings by national courts backs the case for stronger rules to protect consumers against misleading environmental claims by companies, as legislators examine the EU’s proposed Green Claims Directive.
Euro Markets: EUAs slip as UKAs surge to squeeze price spread to 2-month low
European carbon prices spent another session wedded to TTF natural gas, tracking marginally lower despite a strong auction result feeding in morning support, while UKAs continued to rally, jumping as much as 6% to squeeze the spread between the two markets to its lowest since early April.
AMERICAS
Electricity distribution units bear brunt of free allowance cuts in ARB’s proposed cap-and-trade changes
California regulator ARB illustrated a large reduction in free allowances to electricity distribution units (EDUs), while discussing expanded mandatory emissions reporting that could add new sources of compliance in the joint ETS scheme at a public rulemaking workshop on Friday, but once again refrained from divulging eagerly awaited annual budget cut details, keeping prices in the secondary market in check.
Bank analysts bullish on CCAs and RGAs, awaiting clarity on LCFS surplus
Analysts at a major investment bank are bullish on California Carbon Allowances (CCAs) and RGGI Allowances (RGAs), but added that clarity on California’s intentions to address credit surplus in its Low Carbon Fuel Standard (LCFS) is needed for prices to reverse course from their year-to-date lows.
Canada underscores CDR deployment to achieve 2050 climate goals
Canada must advance its study on CO2 removal (CDR) technologies to support its climate goals, a report published by the Environment and Climate Change Canada (ECCC) revealed.
Speculators close V24 holdings in California and RGGI, traders remain short in Washington
Speculators reduced their net length in V24 California Carbon Allowances (CCAs) and RGGI Allowances (RGAs), while both managed money and emitters widened their net short position in Washington Carbon Allowance (WCA) holdings, according to weekly data from the US Commodity Futures Trading Commission (CFTC).
ASIA PACIFIC
Australian industry taskforce publishes integrated farm land management method discussion paper
Australia’s long-awaited integrated farm land management (IFLM) method has been released for consultation amid plans to submit a draft version to the Emissions Reduction Assurance Committee (ERAC) by the end of the year.
CN Markets: CEA price falls to 4-week low, lacks direction amid regulatory vacuum
China’s national carbon market saw allowance prices over the past week fall to a one-month low, as the lack of policy clarity on the current compliance cycle continues to drain available supply as well as demand.
Japan’s biggest steelmaker found falling well short on climate
The biggest steel producer in Japan has set itself emissions targets that are not aligned with the world’s ambitions, relies on inadequate technology to achieve it, and refuses to give up on coal, putting its own future at risk, an industry watch group said Friday.
Indonesia poised to lift carbon credit moratorium by year-end, says investor
Indonesia is set to end its current moratorium on post-2020 carbon credit issuances by the end of the year, according to a source close to the matter, with new supply expected to flow in the first quarter of 2025.
Queensland bans all CCS over giant underground water source
The Queensland government on Friday permanently banned carbon capture and storage (CCS) anywhere in the state above its vast Great Artesian Basin (GAB) to protect a water source vital to its agricultural industry.
Novel hydrogen and graphite developer partners with South Korean steel giant in emissions-cutting plan
Western Australia-based hydrogen and graphite start up Hazer on Friday announced it has signed a Memorandum of Understanding with South Korean steelmaking giant Posco to collaborate on green steel development.
VOLUNTARY
Canada’s Carbon Streaming ousts CEO, reshuffles board following large project investment losses
Toronto-based offset project financier Carbon Streaming Corporation late on Friday announced significant changes to its board of directors and senior management, ousting its current CEO following large financial losses stemming from a doomed Indonesian investment.
First trade of voluntary carbon credits takes place on Turkish exchange
The Turkish energy exchange launched a new platform to mediate the purchase and sale of voluntary carbon credits, with the first transaction taking place last week.
Canadian carbon credit financier launches EV charging carbon offset programme in India
A Vancouver-based carbon offset developer has partnered with an Indian firm to generate voluntary carbon credits from electric vehicle (EV) charging stations across the South Asian nation.
Researchers find method to significantly reduce GHG emissions from agriculture
A group of researchers has discovered a method to cut nitrous oxide (N2O) emissions from agricultural production, which up until now had been considered “unavoidable”.
Corporates need to sharpen up reporting of carbon credit retirements, finds research
Corporates are keen to report voluntary carbon credit retirements, but only half the market reveals the names and details of the projects behind the carbon credits they use, research finds.
Small Caribbean state proposes nature trust to claim carbon credits, despite chequered record
A Caribbean small island developing state (SIDS) has proposed “investing” natural capital in a “development bank” to monetise it, including through carbon credits, although it has a chequered history of delivering on green policy and is plagued by allegations of land grabs and environmental violations.
BIODIVERSITY (FREE TO READ)
FEATURE: AI speeds up understanding of biodiversity and could improve decision making on nature
Developments in artificial intelligence (AI) are speeding up the time it takes to process large amounts of scientific data and could potentially help scientists make better decisions about how to preserve biodiversity, say industry experts.
NGOs call on Scottish govt to scale investments in nature amid concerns over biodiversity credit plans
Scotland must urgently ramp up public investments in nature protection, a group of NGO has said, expressing concerns over the impact of biodiversity credits following the government’s plans to support the development of the voluntary market in the country.
Investment group urges Canada to close nature market policy gaps
Canada needs to close the policy gaps in its approach to biodiversity offsets and stormwater credits, such as third-party investor involvement, a conservation investment-focused network said in a paper this week.
EU biodiversity negotiator urges companies to increase engagement ahead of COP16
Companies should ramp up their efforts in monitoring and reporting their biodiversity impacts rather than wait for a regulatory framework to be established, the EU lead negotiator for the Global Biodiversity Framework (GBF) has said.
—————————————————
BIOCHAR REPORT
Supercritical’s latest report reveals a 30x surge in biochar supply over the next four years, however 88% of this growth comes from low-quality credits. “Boom or Bust? 2024 Biochar Market Outlook” delves into the pressing challenges buyers face, offering exclusive data and trends from Supercritical’s own marketplace which covers 80% of the market. Discover why high-quality biochar commands premium prices and how savvy buyers secure long-term agreements amidst the scarcity. This essential report equips you with the insights needed to navigate the evolving biochar landscape and make informed decisions in this burgeoning market. Download the report
—————————————————
WEBINAR
Surprises from analyzing over 500+ carbon projects – June 12th, 9AM BST: Join carbon market experts from Morgan Stanley, BCG, and Calyx Global as they discuss insights gained from evaluating carbon credit quality. The speakers will review the surprising project types with higher GHG integrity, due diligence best practices, and how to consider beyond carbon impacts. Learn what key factors play a critical role in assessing GHG integrity – helping you make more informed decisions. Register for the webinar here. You will receive an on-demand recording after the webinar if you register but cannot attend live.
—————————————————
CONFERENCES
Carbon Forward North America – June 11-12, Toronto and Online: 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. To express an interest in speaking or sponsoring, please email michelle@carbon-forward.com
FREE PASSES: We have allocated a limited number of free passes for Carbon Forward North America to attendees representing medium and large companies that currently buy and retire voluntary carbon credits or are looking to do so in the future. If your organisation is an end user of carbon offsets or wants to learn more about offsetting, and is not from the energy or financial sectors, contact us to apply for a free pass. Maximum one per company.
Carbon Forward Expo – October 8-10, London and Online: Save the date! More info coming soon…
Argentina Carbon Forum – June 4-5, Buenos Aires: The Argentina Carbon Forum, a key initiative to strengthen carbon markets in the country, seeks to mobilise local actors and promote intensive climate action. This event opens doors for public-private sector organisations to leverage economic and environmental benefits by financing projects that mitigate climate change. It also offers business visibility, networking and access to valuable information, discussing issues such as markets and negotiations, implementation of emissions trading systems, and decarbonisation strategies. The Argentina Carbon Forum fosters collaboration and the development of innovative solutions for a sustainable future. Register here
—————————————————
Premium job listings
- Manager, Market Strategy & Engagement, Native – Remote (US)
- Head of Carbon Project Development (m/f/d) – Volkswagen ClimatePartner GmbH – Munich
- Environmental Markets Correspondent, Carbon Pulse – Latin America
See all listings or post a job
—————————————————
BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Questionable hosts – As Azerbaijan prepares to host COP29, significant concerns have arisen due to the country’s authoritarian governance, reliance on fossil fuels, and poor human rights record, Euractiv reports. In the lead-up to the summit, the Azerbaijani government, led by President Ilham Aliyev, has intensified its crackdown on civil society, including the arrest of journalists and activists on various charges, ranging from smuggling to unauthorised construction. This suppression extends to the independent media and NGOs, with multiple reports detailing the detention of key figures in the media and democracy advocacy sectors. International bodies and experts have criticised Azerbaijan for its actions, noting a severe decline in democratic freedoms and expression over the past two decades. The country ranks low in global indices for press freedom and freedom of expression. The crackdown is also notable in religious freedoms, with recommendations for Azerbaijan to be designated as a country of concern due to violations under the International Religious Freedom Act. Despite international backlash, the Aliyev government maintains its stance, bolstered by strategic geopolitical and energy-related positions that limit the effectiveness of traditional international advocacy.
EMEA
Safeguarding jobs – The UK’s Labour party says that its plans for a new public green energy company, branded Great British Energy, would safeguard jobs for generations to come, in response to accusations that it would put jobs at risk by vowing not to issue any new oil and gas licenses if it wins July’s election. Great British Energy, to be headquartered in Scotland, would not generate energy itself, but would invest public money in projects like offshore wind and solar farms, which the party says would help secure domestic supplies and cut consumer bills. The aim is for each pound of public investment to trigger a further £3 in private-sector funding. Labour wants to hand the company £8.3 bln over the next five years for investments, funded by a windfall tax on the profits of oil and gas companies. The government already has such a tax, recently extended until 2029, but Labour would charge a higher rate and close some tax allowances for investment. Labour leader Keir Starmer has said that planning for the future is key when transitioning away from oil and gas. (BBC News)
ASIA PACIFIC
Blueprint in the making – South Korea may consider generating 70% of its electricity from carbon-free energy sources such as renewables and nuclear power by 2038, up from less than 40% in 2023, Reuters reported, citing a draft blueprint submitted Friday by experts. According to the document, the government is likely to maintain its previous plan to add four nuclear plants by 2038, bringing the total to 30, though expects to more than triple solar and wind power output to 72 GW by the end of this decade compared to 23 GW in 2022. The plan, awaiting finalisation by the government, also targets power generation capacity increasing to 157.8 GW in 2038.
Delayed – New rules to develop offshore wind farms in New Zealand will not be in place until the middle of next year, despite National Party promising to finalise them within a year of winning office, Newsroom reports. A ministerial briefing obtained by the news outlet under the Official Information Act shows legislation for the rules won’t be introduced until December and wouldn’t be in force until mid-2025. Development permits are unlikely to be granted until ‘early-to-mid 2026’. Labour’s energy and climate spokesperson Megan Wood said she viewed it as a broken election campaign promise. Last week, five major offshore wind developers who have expressed development interest wrote to ministers saying the government’s planned seabed mining in the same region would delay their developments for decades.
Sustainability bonds – Thailand planning to sell over $1.1 bln baht-denominated sustainability-linked bonds (SLBs) in Q4 of 2024, which will be the first such offering from an Asian government, Bloomberg reported. The bond sale will finance government’s budget deficit and will be offered to both local and foreign institutional investors. Bonds will also be tied to the programmes intended to reduce CO2 emissions. The SLB issuance will take place before any government sale of foreign-currency bonds, which the finance ministry is still studying, an advisor at the ministry said this week.
AMERICAS
Cap-and-trade considered – Some utilities awaiting US EPA regulations on existing natural gas-fired power plants are embracing carbon trading as a compliance option, reported S&P Global. Such mechanisms may allow power companies to keep some plants operating once strict emissions limits are in place. The EPA has requested stakeholder feedback on the planned regulations, including whether carbon trading should be an option. The powerful industry group Edison Electric Institute (EEI) told the EPA that it should make explicit its willingness to consider subnational trading programmes – such as RGGI – for state implementation plans.
Superfund success – Vermont implemented its Climate Superfund Act on Thursday after Governor Phil Scott (R) allowed the bill to become law without his signature, reported E&E News. The bill directs the state to seek billions of dollars from fossil fuel companies to cover the costs of climate change impacts, but is certain to be challenged in court. Last week, a group of 19 Republican state attorneys general filed a petition asking the Supreme Court to prohibit efforts by Democratic-led states to hold oil producers liable for the impacts of the burning of their products.
EPA-approved chemistry – The US EPA announced draft permits for an ocean carbon removal project on Thursday, the first time that the Biden administration has offered regulatory support for an ocean alkalinity enhancement project, reported E&E News. The project is led by Woods Hole Oceanographic Institution researchers and will pour a pink-dyed solution of sodium hydroxide (lye) into the ocean off the coast of Massachusetts. The mixture is expected to lower the acidity of seawater and enable the ocean to capture more CO2 from the atmosphere.
Majority wins – ExxonMobil CEO Darren Woods and current company leadership will remain at the helm of the company following Wednesday’s board vote, which saw shareholder support for the team between 87-98%, reported E&E News. The majority appears to have pulled through despite efforts from outspoken shareholders. Calpers and Norway’s sovereign wealth fund, for example, publicly stated they would vote against Exxon’s board in light of the company’s lawsuit against shareholder Arjuna Capital, which called on Exxon to align their 2030 emissions reductions targets with the Paris Agreement.
A burning issue – Nearly one-third of the US population – some 115 mln people – live in counties with high wildfire risk, an analysis by the US Forest Service in partnership with Headwaters Economics and Pyrologix found. The assessment underscored the urgency to protect “thousands” of vulnerable communities, particularly in the Pacific Northwest – which it said has higher risk than previously understood. More than 60% of counties in Washington and Oregon were vulnerable to high wildfire risk, up from 47% in previous models. As well, nearly three out of four people in tribal areas are living in high-risk areas. About one-third of all buildings – amounting to some 48 mln structures – were also located in high risk counties, the assessment found.
VOLUNTARY
Not on board – H&M has expressed opposition to the Science Based Targets initiative’s (SBTi) proposal that would allow companies to use carbon offsets to meet their climate goals. Leyla Ertur, H&M’s head of sustainability, criticised the move in a letter, arguing that it undermines genuine decarbonisation efforts within company value chains and shifts focus away from necessary investments and innovations for systemic change. She stressed that this approach deviates from SBTi’s historically robust, science-based standards. Recently, SBTi faced backlash for considering carbon offsets, a departure from its previous stance, and is now revising its net zero standard to better assess the role of carbon credits. (WSJ)
Open for comment – Biomass carbon removal and storage company Rewind has released its Framework Protocol for Marine Terrestrial Biomass Storage (MTBS) for public consultation, which is open until June 30, 2024. The framework details its approach to quantifying net carbon removal while monitoring and preserving the aquatic environment and was developed in collaboration with scientists, environmentalists, engineers, maritime operators, and carbon market experts. The company’s novel CDR approach involves transporting agriculture and forestry residue to the bottom of the Black Sea, where it is able to be permanently stored due to the lack of oxygen at its deepest levels. By 2030, Rewind aims to store a gigatonne of CO2.
AND FINALLY…
More trustworthy thermometers – The Illinois-based Heartland Institute, known for its climate disinformation efforts, is establishing a network of temperature sensors across the US to challenge widely accepted climate data that confirms global warming. This initiative, named the Global Open Atmospheric Temperature Systems (GOATS), aims to gather “unbiased” temperature data through sensors costing $2,000 each, with funding solicited from supporters. Heartland’s project has been met with scepticism, with critics including NASA’s Goddard Institute for Space Studies refuting Heartland’s claims of corrupted temperature readings due to urban heat islands, noting that this effect is well-understood and accounted for in scientific analyses. The initiative is part of broader attempts by certain groups and political figures to undermine climate science and oppose environmental regulations, often backed by fossil fuel interests and conservative funding sources. NASA has suggested that if Heartland’s data collection aligns with scientific standards, it could potentially contribute to existing climate data networks. (E&E News)
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
