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TOP STORY
RGGI emissions rise over 7% in Q2, continue 2024 ascent
Emissions under the US Northeast and Mid-Atlantic power sector cap-and-trade scheme increased more than 7% year-on-year (YoY) during Q2, programme data showed Thursday, as regional power demand continued its 2024 growth.
ASIA PACIFIC
BRIEFING: Amid steel boom, Malaysia faces rising CBAM costs, climate target challenge
Malaysia is expecting rapidly rising carbon emissions from its steel sector, which is expanding utilising CO2-intensive equipment that could put its climate targets at risk while imposing bigger costs under the EU Carbon Border Adjustment Mechanism (CBAM).
Vietnam confirms 100 industrial participants in two-year carbon market pilot run
Vietnam confirmed Thursday it is on track to finalise the set-up of its pilot emissions trading scheme, with the initial phase to include 100 companies across the thermal power, iron, and steel production industries, with a trading platform due next year.
New Zealand to see minor increase in free NZU allocation after govt revises input factor
The New Zealand government on Friday announced a 3.2% increase for 2024 of the Electricity Allocation Factor (EAF), a key figure to determine the amount of CO2 permits that will be handed out to emissions-intensive, trade-exposed (EITEs) industries in the ETS.
Australian startup with Japanese CCS project pipeline secures govt permit
A startup holding several CCS MoUs with Japanese companies has been awarded two offshore greenhouse gas storage permits by the Australian government after being approved for work programmes worth over A$270 million ($176 mln).
Japan’s MOL on track to meet 2030 emissions reduction target
Japanese shipping giant Mitsui OSK Lines (MOL) is well on track to reach its 2030 emissions reduction target and met its 2023 goal without using any carbon credits, according to the latest company data.
VOLUNTARY
Hundreds of financial institutions commit to Scope 3 GHG accounting protocol
An industry-led greenhouse gas (GHG) accounting protocol for financial institutions (FIs), used by public sector and civil society decarbonisation standards, has reached 500 signatories, the organisation announced on Thursday.
Hong Kong exchange adds Gold Standard credits to voluntary carbon marketplace
Hong Kong Exchanges and Clearing (HKEX) has listed Gold Standard’s Verified Emission Reductions (GS-VERs) on its voluntary marketplace Core Climate, it announced Thursday.
Brazilian agroforestry project loses nearly 18,000 tCO2e to drought
A Brazilian afforestation, reforestation, and revegetation (ARR) project lost 17,942 tonnes of CO2 equivalent due to drought between 2020 and 2023.
Barriers set to block widespread expansion of carbon removal, survey finds
A survey on durable carbon removal (CDR) technologies released this week has warned that several hurdles exist that could block the necessary pace of expansion needed to meet critical climate goals.
AMERICAS
WCI Markets: CCA prices gain momentum on wide intraday range
California Carbon Allowance (CCA) prices plunged to year-to-date lows before rebounding on Wednesday, with a surge in volatility that brought intraday spreads up to more than $2 in the absence of a catalyst to signal market direction.
LCFS Q1 net credit output retreats from record highs
Net credit generation under California’s Low Carbon Fuel Standard (LCFS) trailed behind last quarter’s historic highs on lower renewable diesel (RD) and ethanol contribution to the total, according to state data published Wednesday.
Satellite data suggests US oil and gas producers emit much more methane than reported
US oil and gas producers are emitting four times more methane than estimated by the Environmental Protection Agency (EPA), exceeding their own emission goals eightfold, according to data collected by a new jet aircraft.
Brazilian legislature will send hydrogen framework to Lula for approval, partial veto -media
Brazil’s upper and lower legislative chambers have reached an agreement with the executive branch to send final hydrogen legislation to President Luiz Inacio Lula da Silva for approval and partial veto, sparking a do-over of select clauses, according to local media sources on Wednesday.
EMEA
BRIEFING: Italy bets on controversial nuclear energy for 2030s
The Italian government’s plan to build nuclear up to a large share of its energy mix after 2030 goes against current public opinion – in a country that has voted twice to ban the energy source, and never succeeded in building a plant – and fails to address how it will meet the EU’s emissions reduction target for this decade.
Shell’s swerve away from Paris Agreement goals reaps dividends for shareholders
Shell’s new mantra of “more value with less emissions” paid dividends during the second quarter in which the majority of shareholders opposed calls for the Anglo-Dutch major to re-align with the Paris Agreement.
INTERVIEW: Sovereign funds fit early-stage green hydrogen investment needs
A number of high-profile green hydrogen investment announcements by Saudi and Emirati sovereign funds in recent months could be a win-win, rather than a driver of interregional competition, a European green industrial transformation and geopolitics advisor told Carbon Pulse.
Euro Markets: EUAs blow through more technical levels as short-covering drives price to four-week high
European carbon prices extended Wednesday’s gains as the market shrugged off early tests of a key technical level that had acted as resistance and has now become a support, and breached two more upside levels on their way to the highest intraday prices in nearly four weeks.
INTERNATIONAL
Scientists warn swift emission reductions needed to reverse tipping points
Current climate policies imply a high risk for tipping Earth resources, even if the temperature increase returns to below 1.5C after a period of overshoot – but these could be minimised if warming is swiftly reversed, according to a study published on Thursday.
Accounting standards authority calls for feedback on CO2 reporting examples
An accounting standards organisation is seeking views on eight illustrative examples of how companies should report climate risks.
CCUS industry will need around $160 bln by 2030 -analysis
The carbon capture, utilisation, and storage (CCUS) industry will require an investment of close to $160 billion by 2030, with 20% for power generation use, according to a global commodities research firm.
Global shipping campaign launches ‘Beyond Methane Pledge’ to end LNG use
The Say No to LNG campaign has launched the ‘Beyond Methane Pledge’ in an attempt to put an end to the expansion of liquefied natural gas (LNG) and other methane-based fuels, and eventually phase out their use in all sectors by 2030, the campaign announced Thursday.
AVIATION/SHIPPING
Japan’s MOL on track to meet 2030 emissions reduction target
Japanese shipping giant Mitsui OSK Lines (MOL) is well on track to reach its 2030 emissions reduction target and met its 2023 goal without using any carbon credits, according to the latest company data.
US-based startup raises $6 mln to produce sustainable aviation fuel from CO2
A US-based startup has raised a $6 million seed round to scale its direct air capture-to-sustainable aviation fuel (DAC-to-SAF) technology, it announced Thursday.
BIODIVERSITY (FREE TO READ)
Nature markets alliance targets Mexican states
A programme that aims to halt the net loss of biodiversity by 2030 in Mexico, while developing nature markets including biodiversity credits with regional governments, has been announced in an alliance between French and Mexican companies.
Land-based activities harming Great Barrier Reef water quality, major study finds
The pollution load in Australia’s Great Barrier Reef has increased following the impacts of land-based activities and climate change, a scientific study involving over 200 experts found on Thursday.
UK government prepares environmental plan as “nature is dying”
The new UK government is preparing a statutory plan for the natural environment focused on cleaning up waterways, planting trees, and halting species decline.
Biodiversity net gain lacks market transparency, expert says
A lack of transparency in England’s biodiversity net gain (BNG) programme is frustrating conservation scheme managers, with some deliberate withholding of information, an industry insider has said.
Conservation finance group eyes collaboration with Verra on stewardship certificates
A conservation finance organisation has started developing a framework for stewardship certificates, with plans to submit it for consideration to crediting standard Verra, Carbon Pulse has learned.
Biodiversity Pulse: Thursday August 1, 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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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 10% discount offer, which is available throughout August. 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!
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Under pressure – The EU plans to pressure emerging economies such as China to contribute funding for climate action in developing nations at global negotiations in November, according to a document seen by Politico. Financing is at the center of this year’s UN climate conference, COP29, with developing countries clamoring for a significant increase in funds to help them cut emissions and prepare for the consequences of global warming. The current funding pledge of $100 bln a year — which runs until 2025 and needs to be replaced with a new target at COP29 — is financed by countries classified as industrialised when the UN climate treaty was drawn up in 1992.
Broaden the scope – On July 31, 2024, the European Commission opened a consultation period for public feedback on a draft delegated act to provide clarity on the inclusion of GHGs from offshore vessels within Regulation (EU) 2015/757 as of 2025. As part of the Fit for 55 package, the MRV Maritime Regulation was revised in 2023, with a view to include GHGs from offshore ships in the scope of the regulation as of the start of 2025. It should apply to all offshore ships of 400 gross tonnage and above, the executive said. Following that revision, the European Commission said it is now updating the annexes to this regulation, via a delegated act, in order to clarify which emissions should be covered. The intention is to cover emissions from ships designed to perform service activities offshore or at offshore installations, such as offshore support vessels, offshore tugs, or pipe layers.
North Sea paralysis – The UK government’s decision to raise the windfall tax on oil and gas companies operating in the North Sea could paralyse upstream investment over the next parliamentary term (likely five years), according to the consultancy Wood Mackenzie. The government announced this week that it would raise the Energy Profits Levy to 38%, from 35%, from November, and extend it by one year to March 2030. It is also expected to nix a 29% investment allowance and reduce the capital allowances, although those details are not year clear. The government suggests that this hike could raise average revenue of £1.2 bln per year, Wood Mackenzie said. It could also result in a premature slowdown of upstream oil and gas investments, leading to a faster decline in production, it said.
Don’t bank on it – The Bank of England (BoE) has released its annual climate-related disclosures report, highlighting considerable year-on-year emissions reductions and confirming that it is on track to meet its 2030 targets, Edie reports. During the year leading up to Feb. 2024, the Bank’s carbon emissions were estimated at 78,919 tonnes of CO2e, marking a 21% decrease from the previous year and a 45% reduction compared to the baseline year of 2015/16. A major factor in this reduction was the decrease in estimated emissions from purchased goods and services, attributed to the receipt of more accurate data and methodological improvements. The report states that the Bank remains on track to meet its near-term targets. The BoE claims these targets are aligned with a 1.5C trajectory.
ASIA PACIFIC
Work to be done – Vietnam’s Electricity and Renewable Energy Authority (EREA), the Japanese Embassy in Vietnam and the Japan Bank for International Cooperation (JBIC) have established a working group for the implementation of AZEC, a Japan-led decarbonisation initiative, Vietnam News reported. The group will work on several tasks, including carrying out green transition at fossil fuel power plants and promoting renewable energy generation. The two countries should work together in sharing and transferring relevant technologies, while forming an international carbon credit market to create a green financial flow, said Vietnam’s Deputy Prime Minister Tran Hong Ha.
Noble agreement – BP Berau in Indonesia has signed an agreement with Bandung Institute of Technology (ITB) to advance research and development of carbon capture, utilisation, and storage (CCUS), the natural gas major announced. The agreement will cover feasibility studies that aim to support Tangguh CCUS Project and development of Tangguh CCS hub. In addition, Tangguh will provide higher education scholarships to students at ITB, and also support the institute infrastructure, under the agreement. The Tangguh CCUS project in Indonesia has potential to inject more than 30 million tonnes of CO2 back into the reservoir, contributing to 5% of Indonesia’s Nationally Determined Contribution (NDC) in the energy sector.
Delisting – Genex Power Trading has been removed from the from the official list of the Australian Securities Exchange (ASX) at the close of trading on Thursday. Japanese power company J-Power has completed its takeover of Genex in a deal worth $229 million. Genex’s portfolio included solar PV, wind, pumped hydro energy storage, and battery energy storage and was one of the few remaining publicly traded renewable companies on the ASX.
Low-carbon geopolymer – Australian firm Suvo Strategic Minerals has completed the production and delivery of its first low-carbon geopolymer precast product to be used for hardscaping and demonstration purposes for a major government infrastructure project. This marks the first milestone under the joint development agreement with PERMAcast, the key objective of which was to deliver low-carbon geopolymer concrete (GPC) products and projects and otherwise commercialise the intellectual property (IP) created through the joint venture.
New accreditation – Indian carbon offset developer EKI Energy has been accredited by the International Carbon Reduction and Offset Alliance (ICROA), the developer announced Thursday. ICROA’s Code of Best Practice is used to audit and accredit market participants, designed to instill confidence and trust across stakeholders involved in voluntary carbon markets. A list of ICROA-accredited organisations is available on the body’s website.
AMERICAS
Not cool – Google’s plans to build a data centre in Uruguay have angered environmentalists, who say the project will release thousands of tonnes of CO2 and hazardous waste, reports the Guardian. Uruguay’s environmental authorities recently approved the data centre, which will use air conditioning to cool its servers. The company initially proposed using millions of litres of fresh water to cool its infrastructure, but this caused an outcry in a country that suffered its worst drought since 1950 last year, causing its capital city to run short of drinking water.
Gulf Coast CDR – CO280 awarded a front end engineering and design contract to joint venture SLB and Aker Carbon Capture, in pursuit of a carbon capture plant at a pulp and paper mill on the US Gulf Coast expected to annually remove 800,000 tCO2. The award follows the partners’ March announcement to develop large-scale CDR projects in the North American pulp and paper sector.
Why us? – In a brief ruling Monday, the Colorado Supreme Court asked the city and county of Boulder why its lawsuit against oil firms ExxonMobil and Suncor should proceed in state court rather than federal court. The public jurisdictions should submit their response by Aug. 26, the state’s highest court said. The case is just one of several lawsuits in the US aiming to hold fossil fuel companies responsible for the effects of climate changes.
AND FINALLY…
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