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
TOP STORY
Corporates increasingly look to bundle carbon credits into US CCS tax equity investments
Large corporations are increasingly looking to bundle carbon credits into agreements for tax equity investments for carbon capture and storage (CCS) projects in the US, conference attendees heard this week.
EMEA
EU countries released 5 mln additional free EUAs in two weeks, data shows
EU member states made scant progress in the annual issuance of free EUAs to industry over the last fortnight, with two countries adding just 5 million units to the total number of permits issued since the European Commission published its first report two weeks ago.
EU’s projected fuel price increase from ETS2 ‘optimistic’, refiners say
Motorists should brace for higher fuel prices at the pump than initially foreseen when the EU fully applies its Emissions Trading Scheme (EU ETS) to road transport and heating fuels in 2027, the EU’s refiners association told Carbon Pulse in an exclusive interview.
European utilities report drop in thermal power output, increased renewables generation
Multiple Europe-headquartered power generation firms reported a drop in EU ETS-covered output in quarterly results this week, while their renewable energy output soared.
Profits up at BECCS developer Drax as it continues to await UK subsidy decision
British power company Drax saw profits rise 37% in the first half of the year, as the bioenergy with carbon capture and storage (BECCS) developer continues to await a decision from the UK government on extending the subsidy regime.
Barclays calls on UK govt to address £1.5 bln gap for growth-stage climate tech
Barclays has urged the UK government to plug the £1.5 bln funding gap for growth-stage climate technology companies, which it says is key to the country meeting its net zero ambitions and scaling up the technologies to get there.
French startup set to be first in Europe to sell cultivated meat
A French food startup submitted an application to the European Commission for what would be the first ever sale of cultivated meat in the 27-country bloc.
FEATURE: Egypt’s Article 6 bet could cash in, but doubts remain around additionality
Egypt is slated to receive $6 billion in loans from the World Bank by 2027 contingent in part on meeting Article 6 carbon trading infrastructure milestones – but the North African country’s proclivity for renewables projects could compromise credible additionality.
Djibouti issues Article 6 letter of authorisation for unvalidated blue carbon project
The government of Djibouti has granted a concession and produced a Letter of Authorisation (LoA) for a mangrove restoration project, committing to corresponding adjustment of the resulting mitigation outcomes, according to documents seen by Carbon Pulse.
Euro Markets: EUAs post first 5-day gain in three weeks amid stronger energy while UKAs extend decline
European carbon recorded its first five-day gain in three weeks on Friday as prices moved higher in the wake of stronger natural gas and power markets though some traders were unconvinced at the strength of the rally, and UK Allowances posted a fourth weekly decline.
AMERICAS
BRIEFING: Chile presents draft ETS timeline, floats carbon border tariff
The Chilean government released a draft climate change plan for the energy sector late on Friday for public consultation, proposing an ETS pilot and broaching a carbon border adjustment mechanism.
US oil major’s latest CCS partnership to cut 500k tonnes of CO2/yr from fertiliser production
An oil and gas producer announced on Thursday its second carbon capture and storage (CCS) deal with an ammonia producer aiming to reduce up to 500,000 tonnes of CO2 per year at a US fertiliser plant.
US appeals court rejects EPA denials of small refinery biofuel waivers
The US Environmental Protection Agency’s (EPA’s) 2022 decision to deny small refinery waivers under the Renewable Fuel Standard (RFS) was rejected in a federal appeals court Friday.
Michigan governor vetoes ethanol tax credit from state budget
Governor Gretchen Whitmer (D) vetoed an ethanol tax credit from the state budget on Wednesday to the dismay of the biofuels industry, although a market observer considered the subsidy to have a minimal impact on Renewable Identification Number (RIN) prices.
Producers expand net length across most North American carbon markets, speculators continue CCA shift to 2025
Compliance entities built their California Carbon Allowance (CCA) and RGGI Allowance (RGA) net positions this week, while speculators continued to favour 2025 CCA holdings, weekly data from the Commitment of Traders’ (CFTC) report released Friday showed.
ASIA PACIFIC
CN Markets: CEAs climb back to 90 yuan amid healthier volumes
CO2 allowance prices in China’s carbon market climbed above the 90 yuan ($12.41) level again over the past week amid improved liquidity, as market continue to await news on the permit supply outlook.
INTERNATIONAL
Launch of global coalition focused on hitting 2030 climate goals
A global climate coalition focused on the urgent delivery of the world’s 2030 climate goals, endorsed by top climate figures, officially launched on Friday.
VOLUNTARY
Japanese shipping major invests in aquaculture venture, eyes blue carbon credits
A Japanese shipping firm has invested in an aquaculture venture to create blue carbon credits and protect marine biodiversity through kelp bed restoration projects.
Scottish estate with reforestation scheme up for sale amid criticism
A £12-million Scottish estate with a carbon project has been unexpectedly put up to sale amid criticisms of greenwashing.
ACX delists nature-based carbon credits contract, removes ratings
AirCarbon Exchange (ACX) issued a notice it has delisted a nature-based carbon contract from its facilities, effective June 30.
BIODIVERSITY (FREE TO READ)
Watchdog identifies endangered forest land in two Malaysian states listed for online sale
Over 85,000 hectares of potentially endangered forests in two major Malaysian states are advertised for sale on online marketplaces, a rapid response report by climate watchdog Rimbawatch revealed Friday.
Mangrove conservation efforts gaining traction, report finds
Efforts to conserve mangroves are building momentum, but significant funding from insurance, philanthropy, and carbon is still needed to achieve international objectives, according to a report released Friday.
Article 6 for nature needed to drive regulation on biodiversity credits, expert says
Establishing an international mechanism to regulate the trade of biodiversity credits globally, like Article 6 of the Paris Agreement, is key to supporting government action and bolstering market uptake, the head of a biodiversity credit project developer said on Friday.
Use UK biodiversity net gain system for nutrient credits, says lobby group
The UK government should apply parts of the biodiversity net gain (BNG) system to nutrient neutrality, in a bid to galvanise much-needed private investment, market actors told the government in a letter seen by Carbon Pulse.
—————————————————
CONFERENCES
Carbon Forward Expo – October 8-10, London and Online: Our flagship conference returns to the stunning De Vere Grand Connaught Rooms in Covent Garden. As the agenda comes together for our ninth annual event, we want to make sure you don’t miss out on our 20% discount offer, which ends Friday, July 19. We’re also offering free passes for offset buyers. Get in touch to find out if you’re eligible and how to apply. Register now!
—————————————————
Premium job listings
- *Freelancer (m/f/d) Carbon Project Development, Volkswagen ClimatePartner GmbH – Mexico
- Director Carbon Procurement, KliK Foundation – Zurich
- Environmental Markets Correspondent, Carbon Pulse – US/Canada (Remote)
*New listing
See all listings or post a job
—————————————————
BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Olympic sportswash – To coincide with the opening of the Olympic Games in Paris, the New Weather Institute in Sweden has published a briefing showing that the Olympic Movement has collected at least $1.2 bln in sponsoring revenue from high carbon polluters over the past 20 years. Between 2004 and 2022, the Olympic Games has accepted sponsoring from seven of the world’s biggest oil and gas companies, 19 manufacturers of cars and other vehicles, eight international airlines, one leisure travel company and one manufacturer of private jets, the study shows. The Games’ revenue from these major polluters has increased tenfold over the period, from $24 mln in 2004 to $249 mln in 2022, it shows. “The Olympic movement is still sportswashing major climate polluters that are about to send Earth into Climate chaos. Just as sports dropped tobacco advertising, the time has come to do the same with sponsors that fuel the climate crises,” said Gunnar Lind, co-director New Weather Sweden and author of the report.
Kazakhstan green tech – The European Bank for Reconstruction and Development (EBRD) will provide $60 mln in financing to Kazakhstan’s Bank CenterCredit (BCC) to promote green tech and growth opportunities for small companies in the country. Half of the package will be a loan under the EBRD’s Kazakhstan Green Economy Financing Facility II (GEFF Kazakhstan II), while the other half will be used to support small- and medium-sized firms. To date, the EBRD has invested €10.2 bln in 324 projects in Kazakhstan, most of which to support private entrepreneurship.
EMEA
Cities on top – Aberdeen, Edinburgh, and Glasgow have emerged as the final contenders to host the headquarters of Great British Energy, the UK’s publicly owned clean energy company launched by the new Labour government, following reporting by the Times that energy secretary Ed Miliband had narrowed down the options. Inverness, Greenock, and Grangemouth had also been touted as contenders, but look set to miss out. Aberdeen has strong backing given its background as an oil and gas, and now offshore wind hub, while Edinburgh hosts most of Scotland’s major financial institutions and key energy stakeholders such as the Crown Estate, which will partner with GB Energy to scale up offshore wind. Meanwhile, Glasgow hosts the HQ of Scottish Power as well as large offices for major banks including Barclays and JP Morgan.
Cable funding – The European Investment Bank (EIB) has granted €450 mln to Italian cable maker Prysmian to support the manufacturing of extra-high-voltage submarine power cables and high-voltage onshore cables, advancing the European energy transition. The funding will support REPowerEU objectives, helping to advance the EU’s clean energy transmission through submarine cable and long-distance connections. Specifically, the funding will enable Prysmian to double its production capacity for extruded cables at its facilities in Pikkala (Finland), Pozzuoli (Italy), and Gron (France) from 2,000 km to over 4,000 km annually.
ASIA PACIFIC
DAC project – CarbonBox, China’s independently developed direct air capture (DAC) facility, has passed its reliability verification, with a single module capable of capturing over 100 tonnes of CO2 directly from the air each year, according to state-owned newspaper People’s Daily. The project, developed by researchers at Shanghai Jiao Tong University (SJTU) and China Energy Engineering Corporation, has an annual CO2 capture capacity of 600 tonnes, the report said.
Ammonia deal – Japan’s IHI has signed a memorandum of understanding (MoU) with Taiwan Fertilizer to construct an ammonia value chain in East Asia, it announced Friday. A joint study on optimising logistics using the ammonia receiving terminal of the Taiwanese company will be carried out, IHI said in a statement. The two firms will also discuss ways to create demand for ammonia, including ‘greening’ raw materials in Taiwan’s industrial sector.
Carbon neutrality achieved – Taiwan’s main stock exchange TWSE has been awarded a carbon neutrality verification certificate from the British Standards Institution (BSI) with the use of international carbon credits purchased from the Taiwan Carbon Solution Exchange (TCX), a government-backed carbon marketplace. “TWSE’s recent carbon neutrality declaration involved the careful selection of carbon credits, and this move will guide the financial market and industries to prioritise climate change issues,” TCX said in a statement.
Bhutan on green hydrogen path – The Ministry of Energy and Natural Resources in Bhutan has launched the National Green Hydrogen Roadmap, with a target to produce 710 tonnes of green hydrogen fuel annually for domestic consumption by 2030 and 70,000 tonnes by 2050. The roadmap will allow Bhutan to capitalise on its competitive renewable electricity costs, enhance energy security, reduce trade imbalances, create a diverse energy system, and maintain carbon neutrality. For the same, a 5MW green hydrogen plant will soon be constructed to meet the demands of fuel cell vehicles. Bhutan aims to establish its first hydrogen export routes by 2030, focusing primarily on Asian markets such as China and India, local newspaper Kuensel reported. Meanwhile, the key implementing agencies for the roadmap include Druk Holding and Investments, Druk Green Power Corporation, Bhutan Power Corporation, Electricity Regulatory Authority, Bhutan Construction and Transport Authority, and Bhutan Power System Operator.
AMERICAS
QC reserve sale – The Quebec environment ministry (MELCCFP) announced Friday that it would be holding a reserve sale on Sep. 26. Three categories of emissions units will be put on sale: Category A, nearly 13.3 mln units at C$54.67; Category B, nearly 13.3 mln units at C$70.24; and Category C, nearly $12 mln units at C$85.83. MELCCFP last announced a reserve sale in Sep. 2021, but was cancelled due to the lack of entities registered.
Ag emissions – A report by Canadian think-tank Fraser Institute, published Thursday, concluded that the federal initiative to reduce Canadian emissions of nitrous oxide would impose significant costs to the agricultural sector and only partially reach Canadian emissions reductions targets. The Fraser Institute assessed Canada’s 2030 Emissions Reduction Plan alongside subsequent documents released by the federal government regarding reduction of emissions from the application of fertiliser and estimated the cost of initiatives to total C$1.6 bln. Federal reports said that measures can reduce nitrous oxide emissions by 14% or 1.6 MtCO2e. The Fraser Institute said the potential benefit is a small reduction in nitrous oxide emissions on a global scale and Canada should reconsider the policy proposal.
Mounting opposition – Iowa Utilities Commission’s (IUCs) approval of Summit Carbon Solution’s CO2 pipeline construction permit has been met with persistent opposition from landowners and state lawmakers, reported the Gazette. IUC in June approved the project developer’s permit request for its proposed 688-mile (1,100 km) CO2 pipeline, and also granted Summit the right of eminent domain if needed. Local governments, landowners, and lawmakers have since filed motions requesting the commission to reconsider its approval. Opponents argue that eminent domain for pipeline construction is not warranted. They acknowledge that their motions are unlikely to succeed, and expect to challenge the decisions in court in case IUC officials deny their requests.
AND FINALLY…
Purplewashing Paris – This year’s running track at the Paris Olympics will be purple, in part due to the International Olympic Committee’s efforts to make the Summer Games the most sustainable Olympics yet, Smithsonian Magazine reported Friday. The purple hue is partially a result of used bivalve mollusks, thanks to a partnership between Italian companies – track-maker Mondo and mussel farming and fishing company Nieddittas. In all, 50% of the track comes from recycled materials, and Mondo estimates it will be 2% faster than the Tokyo Olympics track. Nevertheless, the sustainability of the Olympics have come under considerable scrutiny – despite first-time efforts to take into account all direct and indirect emissions, critics have taken aim at sponsors, with Toyota alone emitting much more CO2 than France in and of itself.
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
