Newsletters > CP Daily: Monday August 5, 2024

CP Daily: Monday August 5, 2024

Published 03:38 on August 6, 2024  /  Last updated at 03:38 on August 6, 2024  / /  Newsletters

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

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TOP STORY

High-level climate talks suggest headway on Article 6, other COP29 priorities

Two recent high-level climate meetings have sent promising signs that remaining Article 6 issues will be resolved at COP29, and that governments remain committed to last year’s pledge to transition away from fossil fuels, according to an EU source.

EMEA

FEATURE: Systemic rejections of wind and solar make it hard for Italy to hit climate goals

Regular rejections to new wind and solar capacity in Italy are a reality check for a country that has just strengthened its climate goals and intends to rely more on renewable energy in the next few years.

UK govt eases planning rules to boost solar and wind farm development

The UK government plans to relax planning regulations to make it easier and cheaper to build solar farms and onshore wind turbines across the country.

British engineering giant to sell a stake in nuclear business

A British aerospace and defence company is set to sell a stake in its mini-nuclear power stations arm.

Euro Markets: EUAs undo prior week’s gains as global stocks, gas markets tumble

EUAs slumped as much as 3.9% on Monday as a sell-off across global equities and bearish gas heaped pressure onto European carbon, with the Japanese stock index seeing its heaviest losses in nearly 40 years and other markets tumbling amid recession fears for the US economy.

AMERICAS

RGGI Market: RGAs return from record highs as market faces looming reversal

RGGI allowance (RGA) prices retreated over the last week from all-time highs, with market observers saying that signs point to a looming return to lower price ranges after valuations on the secondary market have entered historic levels recently.

Analysts reduce CCA price estimates following rulemaking delay, call WCAs overvalued

Analysts have once again lowered their California Carbon Allowance (CCA) price forecasts to account for the extended rulemaking timeline, and expect Washington Carbon Allowance (WCA) prices to remain steady despite being “overvalued” due to the ongoing threat of a repeal.

Analysis suggests Barclays continues to fund US coal power operators

Barclays bank helped raise $1.7 billion for companies operating coal-fired power plants in the US, apparently exceeding its its commitment to stop financing companies that make more than half their revenue from coal, according to new analysis.

BRIEFING: Argentina protects oil and gas with international arbitration privileges

Argentine legislation passed recently to boost investment is back in the spotlight due to federal-provincial tensions over a liquefied natural gas (LNG) plant, with key provisions of the law mirroring a controversial energy treaty that the EU opted to exit this year.

LATAM Roundup: Countries choose green policy or foreign investment

Carbon Pulse rounds up developments in Latin American and Caribbean markets for the week ending Aug. 4, which saw several countries push domestic green industrial transition measures as others courted environmentally damaging sectors in a bid to attract foreign investment.

ASIA PACIFIC

China ETS seen likely to introduce absolute emissions cap around 2030

A major shift in the way China controls carbon emissions could mean the implementation of an absolute cap on CO2 output for the national carbon market around the end of this decade, according to analysts.

APAC business group proposes setting regional voluntary carbon market, urges govts to issue climate bonds

The Asia Pacific Economic Cooperation Business Advisory Council (ABAC) over the weekend proposed setting up a pilot voluntary carbon market programme for the region, and urged governments to issue climate bonds in order to boost climate response.

Australian gas giant bets on CBAM giving new green ammonia plant price advantage

Australia’s Woodside Energy has made a surprise $2 billion investment in a Texan clean ammonia plant, hoping the EU’s Carbon Border Adjustment Mechanism (CBAM) and contracts-for-difference schemes in Asia will help it command a premium on the market.

Australian investor eyes nature-based projects as “infrastructure-like” asset class

An Australian carbon credit developer with a focus on nature-based solutions has been quietly putting together a pipeline of over 10 projects worth a combined A$50 million ($32.3 mln) with four developers, saying it is approaching the sector in a similar way as traditional infrastructure programmes to ensure finance is scalable as demand grows.

Environmental watchdog slams proposed Australian gas development

The environmental authority in Western Australia has recommended that one of the nation’s largest gas discoveries remain undeveloped as it would threaten turtles, whales, and a reef.

Beijing to auction off 1.5 mln carbon permits under local ETS

The Beijing municipal government will auction 1.5 million carbon allowances under its pilot emissions trading scheme in early September, with a price floor for the sale to be set later.

INTERNATIONAL

Researchers propose setting a standalone global carbon removal budget

Researchers from the University of Oxford have proposed establishing a separate budget for carbon removal alongside the existing global carbon budget for CO2 emissions.

VOLUNTARY

VCM Report: SBTi uncertainty casts doubt over voluntary carbon market as N-GEO hits fresh low

Liquidity remained thin and participants cited an uncertain outlook for the voluntary carbon market in the wake of a series of ‘confusing’ technical documents published by the Science Based Targets initiative (SBTi) last week, which confirmed that a final decision on carbon credit use under the organisation’s corporate standard will take place at the end of 2025.

Carbon project developer sees slight Q2 growth in voluntary credit pipeline, validates first project

A Dutch carbon project developer saw a slight rise in its carbon unit pipeline in Q2 and expects its first credit issuance by the end of this year, according to its latest results.

Canadian timber company says it sold 600,000 voluntary carbon credits in Q2 for C$19.7 mln

A New Brunswick-based timber company announced in Q2 financial results last week that it sold 600,000 credits from a Maine improved forest management (IFM) project for C$19.7 million ($14.3 mln), adding that it plans to continue its involvement in the voluntary carbon market (VCM) moving forward.

BIODIVERSITY (FREE TO READ)

US asset managers finance deforestation-linked company through ESG funds, report shows

Major US asset managers are channelling millions towards the world’s largest meatpacker allegedly responsible for deforestation, biodiversity loss, and human rights violations through Environmental, Social, and Governance (ESG) labelled funds, a report has unveiled.

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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

INTERNATIONAL

Two steps forward… – At the 61st meeting of the IPCC, delegates agreed on some of the critical building blocks for the seventh assessment cycle, including the outlines for a special report on cities and climate change and a methodological report on short-lived climate forcers. They could not agree on the strategic planning schedule for the cycle, according to an official summary of the meeting.

EMEA

Market reform – On Friday, the German ministry for economic affairs and climate action (BMWK) released a 118-page report with options for an electricity market reform designed to carry net-zero ambitions and ensure security of supply. The country’s shift from fossil fuels to renewables necessitates a more flexible power system and new investment frameworks, it says. To this end, the report sets out recommendations for changes to renewables support, a capacity market design, flexible demand and local pricing signals. The ideas are open for consultation until Aug. 28. Germany aims to have 80% renewable power by 2030, up from 57% in the first half of 2024.

Rugen awakening – Germany’s new LNG terminal on the Baltic Sea island of Rugen is ready to start commercial operations – but the project lacks demand, reports regional public broadcaster NDR. The terminal, which faces strong opposition from environmentalists, had been stuck in a test phase because some approval requirements – for example concerning fire protection – for the two regasification ships were still outstanding. The regional environment ministry said those requirements have now been met. Deutsche Regas said the two ships, located in the port of Mukran that serve to convert LNG into normal gas, are now connected to the country’s gas pipeline network. According to NDR, the first cargo of liquefied natural gas is not expected in Mukran until the end of August. (Clean Energy Wire)

ASIA PACIFIC

See you soon – Japan is considering holding the second summit of the Asia Zero Emission Community (AZEC), a multilateral forum focused on decarbonisation efforts in Southeast Asia, in Laos in October, Kyodo News reported. Tokyo aims to reach an agreement with other AZEC participants, including nine ASEAN members and Australia, at the upcoming meeting to establish a detailed plan for accelerating decarbonisation in Asia over the next decade, the report said.

Data matters – The Greenhouse Gas Inventory and Research Center of Korea (GIR) plans to launch a special council to help regional governments in South Korea better manage climate-related statistics, it announced Monday. GIR will calculate and disclose regional GHG emissions generated from six sectors based on around 22,500 basic statistics secured by each local government and related organisations. The centre has been seeking ways to help local governments establish and implement their carbon neutrality plans.

IT alliance – SK C&C, the digital arm of South Korea’s SK Group, has teamed up with Vietnamese IT firm FPT IS to jointly develop an integrated digital ESG offering and service delivery system for customers worldwide, the two companies announced Monday. They will utilise the Korean company’s existing ‘digital carbon passport platform’ to help corporate clients comply with mandatory carbon emissions reporting requirements under the EU’s Carbon Border Adjustment Mechanism (CBAM). The platform also supports Scope 3 Life Cycle Assessment (LCA) based on actual carbon data.

SAF framework – A framework to guide Malaysia’s aviation sector on adopting sustainable aviation fuel (SAF) will be launched in September, country’s Minister of Transport Anthony Loke has said. The minister said the Cabinet paper on the National Decarbonisation Roadmap for Aviation was tabled to the Cabinet on July 31, which is expected to guide local aviation sector on decarbonisation. He added that the cabinet has endorsed and approved the blueprint for publishing and implementation. According to the minister, the roadmap is committed to the International Civil Aviation Organisation’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and that the final blueprint will be launched once the meeting with stakeholders is completed. (The Star)

Fruitful funding – The state of Jharkhand in India has launched a fund in collaboration with non-profit Transform Rural India to support 100,000 farmers through carbon sequestration, the Times of India reported. The 500 crore rupees (about $60 million) Birsa Harit Fund will help farmers for a period of 20 years. Launched in 2020, the Birsa Harit Gram Yojana encourages rural families and farmers to plant saplings of fruit bearing trees for long-term livelihood sustenance. Under the scheme, 100,000 plots of one acre (0.4 hectares) each have been taken up for plantation and will be mapped through geo-fencing for their oxygen emissions. The non-profit has signed an agreement with Rabobank under which farmers will be paid for every carbon removal unit achieved and the money will be transferred to their bank accounts directly.

CO2 partnership – Energy and manufacturing major Vopak has signed an agreement with Australia’s Northern Territory government to develop an infrastructure hub to import, store, and handle CO2 in the area. The facility will be a common-user infrastructure, including a CO2 import terminal in the Sustainable Development Precinct of Northern Territory’s Middle Arm area. The facility can be used by various companies to help manage CO2 emissions and can also handle CO2 from the neighbouring countries, the official statement said. At least 90% of Middle Arm Precinct emissions would be captured, compressed, and transported to a nearby geological storage formation for permanent storage, Reuters reported. Meanwhile, the government plans to use carbon capture, utilisation, and storage (CCUS) to reduce emissions, accelerate low-emission industry development including hydrogen production, and transit to net zero by 2050.

Nickel mining issues – Nickel mining is fuelling environmental degradation in Indonesia and causing more emissions, according to a report by the Business and Human Rights Resource Centre. The organisation looked into abuses related to Indonesia’s nickel supply chain, expanding thee group’s research to examine the impacts of nickel mining on two small islands in Southeast Sulawesi: Wawonii and Kabaena. It found that nickel mining led to widespread clearing of forests across Indonesia’s nickel mining concessions. Many of these forests are key natural carbon sinks and critical biodiversity areas, said the report.

AMERICAS

Washington worry – A Washington judge has thrown out a lawsuit against the state’s Department of Ecology (ECY) from the Washington Farm Bureau that alleged ECY did not adequately shield farmers and transporters of farm goods from the effects of the state’s young cap-and-invest programme, reported Capital Press. The judge issued a one-page order on July 29, citing ECY’s written arguments and providing no further explanation for the ruling. ECY argued it was up to fuel suppliers to not pass along the tax, claiming it couldn’t regulate what farmers and truckers are charged for fuel, adding that it was “faithfully implementing” the programme as intended by the legislature and acting within its authority as an agency. The Farm Bureau said it will consider appealing. The agricultural advocacy group was joined by the Washington State Trucking Associations, and Sherri Call, CEO of the association, said the ruling will intensify the trucking industry’s support for a ballot initiative that would repeal the cap-and-invest programme.

WA APCR auction – Meanwhile, the ECY also announced Friday the Oct. 2 date for the 2024 Allowance Price Containment Reserve (APCR) auction. ECY holds APCR auctions at least once each year before the annual compliance deadline, and allowances at allowances sold at the auction can only be used for compliance purposes. Almost 3 mln allowances will be made available at the 2024 Tier 1 price of $56.16, but this is well above the current price on the secondary market. The auction will take place from 1000 to 1300 PST.

Pathway paved – Calgary-based RNG firm Green Impact Partners announced last week that it has finalised the carbon credit pathways for its flagship project – the Future Energy Park – under Alberta’s Technology Innovation and Emissions Reduction (TIER) programme. The firm said the park is estimated annual production will be approximately 4 million gigajoules of RNG, over 300 million litres of ethanol, and approximately 595,000 tonnes of wet distilled grains. Additionally, the company said it GIP has also finalised agreements to sequester the biogenic CO2 from the facility.

ESG scrutiny – House Judiciary Committee Chairman Jim Jordan (R) and Subcommittee on the Administrative State, Regulatory Reform, and Antitrust Chairman Thomas Massie (R) last week demanded information from over 130 US-based companies, retirement systems, and government pension programmes about their Climate Action 100+ membership. The committee had allegedly uncovered evidence that these organisations were scheming with climate activists through initiatives like Climate Action 100+ to implement “left-wing” ESG policies that the chairs said could potentially be in violation of US antitrust law. The Committee in June released an interim staff report detailing the evidence of a “climate cartel” to impose “radical” ESG targets in the country, and has asked those involved in the initiative to clarify their priorities by responding to a series of questions by Aug. 13. (ESG University)

SEC climate disclosure battles – The window for lawmakers to repeal the Securities and Exchange Commission’s (SEC) climate disclosure rule via the Congressional Review Act closed on Thursday, which marked 60 Senate session days since the rule was published in the Federal Register, ESG Dive reported. Republican lawmakers had introduced a Congressional Review Act (CRA) resolution to overturn the measures earlier this year, but the efforts stalled in both chambers. The regulations are still facing legal challenges in the US Eighth Circuit of Appeals, where the agency is fighting consolidated challenges from Republican-led states and oil and gas organisations. It is unknown what effect the failed CRA push will have on the cases.

EPA’s clean bus shortcomings – The US Environmental Protection Agency (EPA) needs to improve internal controls when choosing the recipients of the Clean School Bus Program funds, its Office of Inspector General said in a report. While the EPA followed six of the seven requirements to select recipients of the programme funds, the agency did not have sufficient internal controls in place to ensure that it selected recipients with eligible school buses, according to the report. The EPA did not require sufficient documentation to demonstrate that recipients’ existing school buses met the fuel, weight, and operational status requirements or that the replacement buses would provide a school district with bus service for at least five years, and also fell short of providing oversight. The shortcomings could lead to increased risk of potential fraud, waste, and abuse, and the agency must establish procedures to verify that zero emission school bus replacements are suitable for applicant’s school district, the office said.

Not so abandoned – Governor of Pennsylvania Josh Shapiro (D) is keeping track of oil and gas wells that have been plugged in the state, E&E News reported Monday. Shapiro in March said that his administration had plugged some 200 of the 350,000 abandoned wells in the state — more than it had plugged in the previous nine years combined.  The governor’s move to tackle this issue could boost his environmental credentials as Vice President Kamala Harris considers him a running mate in the presidential race.

VOLUNTARY

Word of warning – Brazil’s environmental minister Marina Silva has urged greater caution from international buyers of carbon credits, reported the FT, after the launch of a probe by the federal police into allegedly-fraudulent offset schemes on stolen illegally appropriated public land. Known as Operation Greenwashing, the scheme reportedly targets one of the country’s top carbon credit sellers – Ituxi Group founder Ricardo Stoppe Junior. Silva said the revelations present a serious problem that could harm the reputation of carbon offsets as a tool to fight climate change.

AND FINALLY…

Weedy carbon removals – Zimbabwean hemp producers are urging the government to liberalise the production of industrial hemp, arguing it could draw investment to the voluntary carbon market, Zimbabwe’s Financial Gazette reported. Hemp can both sequester CO2 and generate carbon credits under the ITMO framework, CEO of the Africa Voluntary Carbon Credits Market Forum , said at a recent hemp and medicinal cannabis symposium. “Just growing hemp on its own is a carbon removal project,” Sibanda said. However, regulatory reforms are needed to tap into the growing VCM and promote industrial hemp production, he added. The African voluntary market forum is also working with Zimbabwe’s environment ministry to create a compliance carbon market under its climate change management bill, which would mandate all companies in the countries to offset their carbon emissions, the newspaper reported.

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