Newsletters > CP Daily: Monday September 30, 2024

CP Daily: Monday September 30, 2024

Published 04:58 on October 1, 2024  /  Last updated at 05:02 on October 1, 2024  /  Newsletters

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

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TOP STORY

ANALYSIS: China steel sector braces for carbon market, capacity policies

The decarbonisation progress of China’s steel industry in the coming few years will likely hinge on recent regulatory developments, including the expansion of the national carbon market, according to experts.

EMEA

DATA DIVE: EU industrial demand destruction continues in 2024

Industrial emission levels in the EU are plunging to new lows in 2024 as weak output has continued to reduce demand for EUAs in a major way more than two years after the energy crisis triggered by Russia’s invasion of Ukraine.

DATA DIVE: Britain’s coal achievement comes against backdrop of ever-increasing global consumption

On Sep. 30, Britain’s last coal-fired power plant in operation, at Ratcliffe-on-Soar in Nottinghamshire, powered electricity to the UK grid for the final time.

INTERVIEW: ‘We never liked CBAM’ – Europe’s aluminium industry rails against EU green trade policies

The aluminium industry is grappling with implementation headaches linked to the EU’s Carbon Border Adjustment Mechanism (CBAM) just as Europe is being flooded by cheap aluminium imports from China, amid general indifference from EU trade authorities, the sector’s business association told Carbon Pulse in an interview.

EU releases draft rules to calculate GHG savings from low-carbon fuels, hydrogen

The European Commission launched a public consultation Friday on the methodology to calculate the greenhouse gas savings obtained from low-carbon fuels such as hydrogen, taking into account a range of factors such as the carbon intensity of a country’s electricity grid.

EU agriculture policy failing on climate, auditors say

The EU’s Common Agricultural Policy (CAP) is failing on its green ambitions, despite its aim to increase environmental and climate ambition for the 2023-27 period, according to the European Court of Auditors (ECA).

Euro Markets: EUAs post 6.7% loss in September as options-fuelled rally loses steam

European carbon allowance prices posted their second-worst September performance in the past 10 years as last week’s options-fuelled rally began to unwind while the annual compliance cycle came to an end and energy markets handed back some of their early gains.

EU carbon prices to face more bearish “headwinds” before turnaround by 2026 -analysts

European carbon prices will continue to face bearish “headwinds” that will extend into next year, but will start to see a turnaround by 2026, analysts said Monday.

VOLUNTARY

VCM Report: Market hopeful for COP29 boost despite weak liquidity

Liquidity continued to drag in the voluntary carbon market in the last week of September amid the distraction of New York Climate Week, although the summit has stirred hopes of a breakthrough at COP29 in November.

Saudi firm to launch voluntary carbon exchange at COP29 -media

A state-backed Saudi company created to scale up the voluntary carbon market (VCM) in developing countries will launch a trading platform at COP29 and seek to integrate regional markets, local media has reported.

Over 50 firms sign carbon removal standards commitment

More than 50 companies have signed the ‘Carbon Dioxide Removal Industry Commitments’, which aim to establish new standards to scale carbon removal in a bid to keep temperature warming to Paris Agreement goals.

Singapore, Ghana issue first call for Article 6 projects

Singapore and Ghana on Monday issued their first call for projects under their Article 6 partnership, having set out the procedures for the authorisation of carbon offset projects meant to channel financing towards emissions reduction or removals in the African country.

Kenyan cookstove manufacturer secures $9 mln investment through carbon credit partnership

A Kenyan clean cookstove manufacturer has received a $9.2 million investment from a London-based financial firm, it announced Monday.

Majority of buyers prefer carbon removals to avoidance, reductions -survey

A survey of voluntary carbon market (VCM) stakeholders has shown that nearly 90% of buyers do not plan to use ubiquitous reduction or avoidance credits in their corporate decarbonisation strategies.

Morgan Stanley IM closes climate private equity fund at $750 mln

Morgan Stanley Investment Management announced Monday that it closed its climate-targeted private equity fund at $750 million after attracting investments from firms in Europe, North America, and Japan.

AMERICAS

RGGI Market: Third Program Review proposals hold more questions than answers

RGGI Allowances (RGAs) in the secondary market continued to slide through the week after the release last Monday of the long-awaited Third Program Review proposed changes, with traders expecting further pressure on prices.

RGGI’s proposed updates could split regional power market -experts

The proposed updates from RGGI states could divide the regional power market into trading zones each with a different emissions cap and separate allowance types, a panel of experts discussed at Climate Week NYC last week.

Washington’s cap-and-invest participation continues to increase despite programme repeal risks

The number of entities registered with active accounts in Washington’s cap-and-trade programme once again increased in an early look at Q3 data, despite the lack of clarification from the regulator regarding the worth of allowances if the scheme is repealed through the ballot initiative.

Environmental group sues Vermont for alleged failure to comply with state climate law

The Vermont chapter of a New England-focused environmental group filed a lawsuit against the state agency, alleging failure to comply with greenhouse gas (GHG) reduction-related requirements under its climate law.

Natural gas necessary bridge fuel in US grid decarbonisation, CCS not yet commercially viable -report

Natural gas will remain important to bridge the gap in energy demand for “many decades” as the US grid expects greater additions of solar and wind power, but carbon capture technology is not yet commercially competitive, according to a study published Monday by a US public policy think tank.

US can reach 65% emissions reduction by 2035 with strong subnational support -study

The US has a pathway to cut emissions by 65% from 2005 levels by 2035 and meet its climate goals under the Paris Agreement if there is an “all-of-society” approach, according to a new study.

LATAM Roundup: J-REDD is king at Climate Week, Colombia releases H1 CO2 tax stats

Jurisdictional REDD+ (J-REDD) starred at Climate Week NYC, and Carbon Pulse has analysed new data about Q2 retirements toward Colombia’s carbon tax, in the week ending Sep. 29.

ASIA PACIFIC

NZ government lays out its climate, ETS agenda for the rest of the year

The New Zealand government has announced the next steps it intends to take on emissions trading, forestry, and agriculture-related measures, in its latest quarterly action plan published Monday.

BRIEFING: Coal still central to emissions-heavy steelmaking, commodities report finds

Metallurgical coal demand is not decreasing in the short or medium term despite calls for steelmakers and the iron ore miners who supply them to cut emissions using new technology.

Malaysia releases updated national climate change policy

The Malaysian Ministry of National Resources and Environmental Sustainability (NRES) on Monday announced an updated climate change policy, which includes a new framework for the country’s transition towards a low-carbon economy.

Duo seeks to slash livestock farming emissions with seaweed additives in Japan

A Tokyo-based microalgae solution provider has teamed up with an Australian company to promote seaweed-added feed additives, in the hope of decarbonising Japan’s livestock sector.

INTERNATIONAL

COP partnership seen to open up for climate opportunities for Australia, Brazil

Opportunities for closer cooperation on natural capital, decarbonisation, and carbon markets between Australia and Brazil could be on the horizon if the latter is successful at securing its bid to host COP31 in 2026, panellists told an event Friday.

BIODIVERSITY (FREE TO READ)

Azerbaijan applies to host 2026 biodiversity COP

Azerbaijan has officially submitted a bid to host the COP17 UN biodiversity summit, as the country prepares for the COP29 climate conference in Baku later this year, the government announced on Monday.

Agricultural companies short on board-level biodiversity expertise, expert says

Not enough companies linked to the agricultural supply chain have board-level expertise in biodiversity, despite the surge in nature commitments, according to an executive at Morningstar Sustainalytics.

German non-profit, Swiss foundation buy first nature units from project in Malawi

A German non-profit and a Swiss foundation have purchased the first batch of nature units generated from a conservation project in Malawi.

National biodiversity plans do not go far enough, WWF tracker finds

Many of the national biodiversity plans that have been submitted in time for COP16 do not go far enough, WWF said on Monday following the launch of a tracker tool.

INTERVIEW: Making fuels from plastics using hydrogenolysis moves one step closer

Researchers at a Swiss university have made an important advance in the use of a hydrogen-based process for the chemical recycling of plastics, which could ultimately enable the conversion of plastic waste into fuels.

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EVENTS

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!

Climate Impact Partners Webinar – October 2: New research shows major companies continue action on climate. Research from Climate Impact Partners shows that Net Zero targets are up, and that more companies plan to use carbon credits to meet their carbon goals. See how you compare by signing up to a webinar and download the full report into the climate commitments of Fortune Global 500 companies.

Eurelectric’s Power Barometer 2024 – October 3, Brussels: Over the past five years, the power sector has faced unprecedented challenges among the COVID-19 pandemic, the energy crisis, and mounting competition from China and the US. With new policymakers taking office, political attention is now on energy independence, industrialisation, competitiveness, and the ongoing climate battle. Eurelectric Power Barometer 2024 data report will take stock of these developments with DG ENER Director General Ditte Juul Jorgensen, MEP Niels Fuglsang, and SSE Managing Director Sam Peacock. Make sure to join them at our free launch event! Register here

Chile Carbon Forum – October 8-10, Santiago: The forum will bring together experts, business leaders, and government officials to discuss challenges and opportunities within the carbon market. It will cover topics such as carbon taxes, offsetting mechanisms, climate finance, carbon market regulations, international cooperation, nature-based solutions, and innovative emission reduction strategies. The agenda includes panel discussions, workshops, and keynote speeches that emphasize the importance of these topics in promoting a low-carbon economy and combating climate change. This forum is crucial for understanding and advancing collaborative approaches to sustainability. For more information, visit Chile Carbon Forum.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

Fossil fuels vs renewables – G20 countries are spending three times as much on fossil fuels than they do on renewables, according to new research by the International Institute for Sustainable Development (IISD). In 2023, public support for renewables stood at $168 billion, compared to an estimated $535 bln for fossil fuel subsidies. Some 95% of public support for renewables came from rich countries and China. The EU collectively invested $340 bln in renewables over 2020-23, while the US invested $140 bln and China $119 bln.

What we want – IETA has released its first Article 6 position paper ahead of COP29, emphasising the need for clarity on authorisation. The paper shares the association’s recommendations on authorisation and what countries engaging in Article 6 should do if there is no agreement on the guidance. IETA called on negotiators to streamline authorisations by adopting standard procedures, forms, and templates, as well as addressing multiple elements in a single process where possible and relevant. The body wants to provide authorisation at the earliest possible time, also to limit the scope of changes and revocation to exceptional circumstances, to be clearly specified in advance. Any new guidance does not negatively impact existing cooperative approaches and authorisations, it added.

Article 6 check-ups – The Climate Action Center of Excellence (CACE) has partnered with insurance consultancy Acquinex to provide a detailed assessment of Article 6 Letters of Authorisations (LOAs), to confirm that each LOA meets the explicit authorisation requirements as per UNFCCC rules and is enforceable. The two bodies aim to ensure these projects align seamlessly with a country’s Nationally Determined Contributions (NDCs) and the regulatory frameworks of Article 6, particularly addressing the risk of overselling. According to the LinkedIn announcement, the collaboration has delivered its first comprehensive assessment for one project and will extend its efforts to more projects in the pipeline.

EMEA

EU hydrogen goes global – EU Commissioner for Energy, Kadri Simson, is in Montevideo today to deepen the bilateral energy cooperation between the EU and Uruguay. The Commissioner’s visit is part of the implementation of the commitments made as part of a Memorandum of Understanding on renewable energy, energy efficiency and renewable hydrogen, which was signed in Brussels last year.

A strong backing – The CEOs of 50 companies, including Volvo, Ikea, Uber and Maersk, have issued a joint call for the new EU Commission and Parliament to maintain the 100% zero-emission target for new cars in 2035. “The 2035 target gives a clear direction” for businesses to deliver, the CEOs say in a statement on Industryfor2035.org. “It also provides the much needed investment certainty on the future of the automotive industry in Europe,” they add. EV makers Polestar and Rivian also signed the declaration along with electric utility Iberdrola. Italy is pushing for an early review of EU car emission rules, saying the 2035 target for new cars to be 100% fossil-free is too ambitious and will not be met.

Fossil-free plastics – A.P. Moller Holding has launched Vioneo, aiming to become the world’s first large-scale producer of fossil-free plastics based on green methanol. The initial plant in Antwerp, Belgium will produce 300,000 tonnes of fossil-free plastics, cutting at least 1.5 million tons of CO2 emissions annually, the release said on Monday. The first production complex represents a €1.5 bln investment with final investment decision expected in 2025.

Market optimism – The government of Nigeria has been optimistic about the potential for the Nigeria Carbon Market Activation Policy (NCMAP), with estimates it could unlock between $736 mln and $2.5 bln by 2030, and create between 600,000 and 2.3 mln green jobs. During the Corporate Climate Action event on Carbon Markets at the 79th UN General Assembly in New York, Permanent Secretary of the Ministry of Industry, Trade, and Investment, Amb. Nura Rimi highlighted the NCMAP as a key part of the country’s commitment to addressing climate change and boosting socio-economic development. The policy is designed to facilitate international carbon market transactions and to contribute towards achieving Nigeria’s NDC, he said.

Ghana boost – The UAE will invest $30 mln to support nature-based community development and climate solutions in Ghana, state-run Emirates News Agency (WAM) reported Sunday. The partnership framework outlines six critical areas of investment, including biodiversity corridors, reforestation, and agroecology. The initiatives belong to Ghana’s “Resilient Ghana” strategy, which aligns with the country’s broader objectives for tackling climate change and promoting sustainable development. Both countries are expected to reveal more details about the specific projects to be implemented during COP29 in November. (Forbes)

ASIA PACIFIC

Cashed up – Queensland Investment Corporation (QIC) has delivered its highest recorded earnings to Queensland government clients of A$8.9 bln ($6.1 bln) in FY23-24, it announced Monday. The government-owned investment vehicle said it deployed A$367 mln across seven private debt investments in renewables, alternative fuels, digitalisation, logistics, and transportation sectors. It did not say how its Nature Fund performed, although the Queensland Labor government recently announced it would invest an additional A$139.5 mln into it if it were re-elected at the upcoming state election. The Miles government said it wanted to seize a first-mover advantage to attract new investment in natural capital projects.

Getting busy – Mitsubishi has officially been awarded two overseas CCS projects jointly submitted by the Japan Energy and Metals National Corporation (JOGMEC), as the government seeks to encourage the development of advanced CCS projects, according to a company statement. The company will work with Nippon Steel and ExxonMobil for a CCS project in Oceania. Mitsubishi has also teamed up with a group of companies to develop a similar initiative in the Malay Peninsula.

New partners – Japanese project developer Bywill has teamed up with Gifu Shinkin Bank and a forest association to pursue carbon neutrality in the Gero Onsen region and create J-Credits through forest management, it announced Monday. Bywill recently also formed a business alliance with e-dash, which provides solutions about visualisation and reduction of CO2 emissions, to promote the creation of carbon credits.

Aim better – Jizoku, which develops carbon projects in Japan’s agricultural sector, has conducted a demonstration project monitoring paddy fields through collaboration with satellite data solution provider Archeda, it announced Monday. The project was implemented on 130 hectares of paddy fields in Kashiwa city, Chiba prefecture, during the mid-drying session (late June to July). Based on the project results, the companies said they will work to improve the efficiency of on-site surveys using drones and establish a model for determining whether mid-drying is implemented using machine learning.

Climate action council – The state of Sabah in Malaysia has established Sabah Climate Action Council (SCAC) to develop and coordinate climate change adaptation and mitigation efforts at the state level. The state amended the Sabah Land Ordinance to include laws on carbon storage and recently completed a GHG inventory study and a vulnerability assessment to inform the development of its climate change policies as part of its goal to become a low-carbon state, the Star reported.

AMERICAS

End of year financials – Florida-headquartered offset developer Zefiro Methane reported Monday its consolidated financial results for the fiscal year ended June 30, 2024, revealing consolidated revenues of $32.8 mln for that timeframe. For the most recent quarter ended June, the company generated consolidated revenues of $9.4 mln, an approximate 10% increase from the quarter ended Mar. 31, 2024. However, Zefiro reported a net loss of $2.9 for the three-month period, as well as a net loss of $6.8 mln for the financial year, the company’s SEDAR+ management and analysis document showed.

New SAF caucus – A Bipartisan group of US senators announced the launch of the Senate Sustainable Aviation Caucus Sep. 25, aiming to promote and support renewable fuels in the aviation industry. The Caucus was put forward by Senators Tammy Duckworth (D-IL), John Boozman (R-AR), Jerry Moran (R-KS), and Amy Klobuchar (D-MN). The caucus’ vision is to “make aviation more sustainable by increasing the use and supply of American-grown, American-made sustainable aviation fuel”, Senator Duckworth said in the announcement.

VOLUNTARY

Deadline extended – The Science Based Targets initiative (SBTi) has extended its deadline for those who wish to respond to the public consultation on its draft Financial Institutions Net-Zero (FINZ) Standard to Oct. 11, 2024. Experts from the finance sector, academia, and civil society are asked to submit feedback on the draft FINZ Standard, which will help shape the final version and contains the latest thinking on net-zero targets for the finance sector.

Results are in – DGB Group, a carbon project developer and ecosystem restoration company, published its half-year results. As DGB remains in its development phase, the firm reported a net loss for the first half of 2024, it said. DGB ended the first half of 2024 with a gross loss of €0.08 mln, compared to a gross profit of €0.21 mln in the first half of 2023. The value of its project pipeline rose by +27.8% year-on-year, and unrealised gains on carbon credit investments grew to €23.82 mln, up from just under €20 mln at the end of last year. The firm’s total project pipeline value reached €29.55 mln, compared to €23.67 mln at the end of last year.

Global expansion -Carbon Capture Scotland has rebranded itself as The Carbon Removers, reflecting its international growth and commitment to biogenic carbon removal, said a LinkedIn post. Projects led by the company include capturing CO2 from fermentation industries like whisky distilling, to securing a £10 mln contract with the Danish government for permanent biogenic carbon removal and storage.

AND FINALLY…

Rationing reviews – A new study from the Climate Change Leadership Group at Uppsala University in Sweden finds that 40% of the public would support rationing measures to help fight climate change. The study surveyed 9,000 people from Brazil, India, Germany, South Africa, and the US and measured the acceptability of rationing fuel and emissions-intensive foods, such as beef, and compared it with the acceptability of taxes on those same products. Respondents were overall equally acceptable to both, although levels varied between countries. While Germans and Americans were strongly against meat rationing, South Africans and Indians accepted rationing for both fuel and foods more readily.

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