CP Daily: Monday September 4, 2023 « Carbon Pulse – Carbon Pulse

News and intelligence on carbon markets, greenhouse gas pricing, and climate policy
Published 00:58 on September 5, 2023  /  Last updated at 10:53 on September 5, 2023  /  Newsletters  /  No Comments
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Hundreds of millions of dollars were pledged to support Africa’s voluntary carbon market on Monday, the first day of the inaugural African Climate Summit in Nairobi that hopes to kick start a flood of climate change investment into the continent.
European carbon prices fell to their lowest in three weeks after finally breaching a key technical support as traders began to react to the resumption of larger auction volumes, while energy prices were weaker amid healthy gas stocks.
The UK should link its ETS with that of the EU and implement an equivalent EU-style carbon border adjustment mechanism (CBAM) in order to prevent any negative impacts on Northern Ireland trade as the EU CBAM enters into force on Oct. 1 and companies look to circumvent the impact of paying higher customs tariffs on carbon-intensive goods, according to a study published on Monday.
A Nairobi-based blockchain carbon credit platform has launched with a futures transaction of more than two million credits sourced from one of its founding partners.
Kenya’s President has called for African countries to join a new partnership that aims to boost renewable energy development across the continent by mobilising finance, providing technical assistance and capacity building, and engaging the private sector.
A French industrial minerals group is demanding the European Commission pay €40 million in damages caused by what it says is an incorrect interpretation of post-2022 ETS free allocation rules.
A California Assembly committee on Friday endorsed a pair of bills that would require Scope 1-3 emissions reporting and climate-related financial risk disclosures from companies, sending the proposals to await a final floor vote.
A study from the University of Leeds found that forests in South America, including the Amazon rainforest, stopped storing carbon and began releasing it during the 2015-16 El Nino event, the findings published in scientific magazine Nature showed on Monday.
Climate change could undermine sustainable forest management efforts in Quebec’s boreal forests, but promising strategies could mitigate the impacts of natural disturbances and help bolster resilience.
*Programming note: due to the Labour Day holiday on Monday, the RGGI Market report will be incorporated in Tuesday’s forthcoming Q3 RGGI auction preview*
New Zealand market watchers are once again doubtful that this week’s government-held auction will clear due to a lack of demand.
A Seoul-based forest-focused intergovernmental organisation will receive funds of nearly $100 million from a Dutch cooperative bank to promote carbon offset initiatives in Asia.
There remains some confusion over Singapore’s plans to allow the trade of international carbon credits (ICCs) domestically to use against local businesses’ carbon tax compliance, according to a note issued by a lawfirm Monday.
The federal government of Malaysia is considering a carbon tax to reduce greenhouse gas emissions, a state official said according to local media.
Australia has appointed a full time chair of the Emissions Reduction Assurance Committee (ERAC) as part of a wider reform of its carbon market and hopes to further its emissions reduction goals.
The price of some standardised nature-based voluntary carbon contracts increased last week as volume started to return to the market following a period of low liquidity, but the market struggled to find a clear direction, with many products moving sideways.
A group of project developers have challenged academics’ claims that cookstove projects are being over-credited, in an open letter published on Monday, mirroring public debates around voluntary REDD+ credits.
Integrity Global Partners (IGP) has formed strategic partnerships with project developer Energy Changes and trading firm Gaia Environment to finance restoration and conservation projects, with a primary focus on Africa, it announced Monday.
Standard body The Carbon Trust is ditching its carbon neutral label for products and replacing it with marks that focus on emissions reductions and comparisons of carbon footprints.
None of the world’s largest 26 banks disclosed the share of total finance directed towards climate solutions in the last year, according to analysis from a research initiative, with most of them yet to commit to wean off financing new coal assets.
The shipping of CO2 is poised for significant growth by 2030 as the global carbon capture, utilisation, and storage (CCUS) market expands, according to analysts.

A global panel of scientists and experts on Monday sounded a planet-wide alarm over the staggering economic and environmental cost of invasive species in a report that has been approved by 143 governments.
Most G20 members still have insufficient policies on nature-related corporate impact, according to new research by disclosure organisation CDP, with the body outlining 10 high-level principles policymakers should adopt to close the current gap.
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Argus North American Biofuels, LCFS & Carbon Markets Summit – Sep. 11-13, Monterey, CA: Join 600+ key government representatives and industry stakeholders from across the entire biofuels value chain and carbon markets sector for three days of networking and knowledge exchange. Hear from leading policy makers from California, Oregon, Washington, Canada’s ECCC, Alberta, and British Columbia and industry experts from LanzaJet, BMW of North America, Morgan Stanley, Chevron, Southwest, Mercuria, Radicle, Phillips 66 and more. Take advantage of this opportunity to gather the latest policy and market insights and reconnect with industry peers. Learn more here.
North America Climate Summit – Sep. 19-21, New York City: The International Emissions Trading Association (IETA) looks forward to welcoming delegates to our flagship North America Climate Summit (NACS) 2023, an official accredited event of New York Climate Week 2023 and the UN General Assembly 2023. The Summit is the ideal forum to take stock of the world’s evolving net zero landscape and clean growth opportunities, and a zoom into North America. Hear from policymakers, business leaders and innovators who are leading the pack in building, scaling and collaborating on carbon pricing and markets for net zero. Register here
Carbon Pulse has teamed up with CME Group to provide its clients with regular updates on the global carbon markets. Check out these briefs for the latest insights on pressing trends and events impacting markets, published every other week. Registration required
Double effort – Denmark became the sixth nation to announce a pledge for the Green Climate Fund’s second replenishment, joining Czechia, Austria, Germany, Monaco, and Canada, adding $232 mln. The body said it welcomed the European country’s significant contribution increase, doubling its total contributions to $424 mln. The Fund’s pledging conference will take place on Oct. 5, 2023 in Bonn, Germany. The event’s hosts are by far the largest contributors to the GCF so far, with nearly $5 mln pledged. Carbon Pulse’s tracker of all pledges can be found here.
Cash flow – Banks are pouring trillions of dollars into the expansion of the world’s most emitting industries in the Global South, according to a new report. Developing countries are often on the frontlines of the climate crisis yet lack the resources to enact climate action plans. As such, they require trillions of dollars in aid to decarbonise their economies and adapt to a warming world. But financial firms are helping to push such countries in the opposite direction, the analysis from international non-governmental organisation ActionAid argues. (Guardian)
Rebellious Tories – The ban on building new onshore wind farms in the UK is set to be overturned to avoid a rebellion from Tory MP’s, reports The Telegraph. Ministers are preparing to unveil changes to planning rules that will free up councils to give the green light to proposed turbines where there is broad public support and to also give local authorities more discretion to choose where onshore wind projects can be built. This will end the current status quo, in place since 2015, whereby a single resident can object to and prevent a new wind farm from being built. The move follows the backing of a group of Tories for an amendment tabled by Alok Sharma, the former COP26 president, to scrap the ban, which has attracted signatories from all wings of the party, in addition to Labour.
Not zero – A British court has agreed to hear a joint challenge by green groups to the UK government’s updated net zero strategy, which was unveiled this March after the previous iteration was ruled to be unlawful, Edie reports. The hearing concerns a package of policy measures announced earlier in 2023, including the revised net zero strategy and Carbon Budget Delivery Plan (CBDP). The groups will argue that these documents do not set out measures that would fully deliver the level of economy-wide decarbonisation committed to under the UK climate law. New energy minister Claire Coutinho is also invited to appear.
Not so Wo(p)ke – A group of NGOs, amongst them CAN, EEB, T&E, and Greenpeace, have sent a letter to European Commission President Ursula Von der Leyen stating their concern over the Dutch foreign minister’s nomination as the new EU climate commissioner, according to Contexte. The commissioner will have to lead work on a number of important items including, the preparation of a proposal for the EU 2040 climate target, representing the EU at COP28, and finalising the remaining climate files of the European Green Deal. They said they were highly sceptical that Wopke Hoekstra possesses the required credentials and expertise to lead on this critical portfolio due to his lack of expertise on EU climate policy, his lack of experience of climate diplomacy at UNFCCC level, the fact he worked for oil major Shell and his political track record.  Current climate commissioner Frans Timmermans resigned this summer in order to run the the upcoming Dutch elections.
REPower Rejig – Cyprus submitted a request to the EU Commission to modify its recovery and resilience plan and add a REPowerEU chapter. It would cover measures related to energy efficiency in buildings, the electrification of transport, and research and development in the field of the green transition. The modified plan is worth €1.22 bln. Brussels now has up to two months to assess whether the modified plan still fulfils all the assessment criteria in the RRF Regulation. If the Commission’s assessment is positive, it will make a proposal for an amended Council Implementing Decision to reflect the changes to the Cypriot plan. Member states will then have up to four weeks to endorse the Commission’s assessment.
Amazon’s APAC allocation – Amazon plans to invest $15 mln to support nature-based projects in the Asia Pacific region to fight climate change, and will allocate $3 mln of that to investing in India, specifically towards supporting communities and conservation efforts in the Western Ghats. The investment will come out of the tech giant’s $100 mln Right Now Climate Fund created in 2019. In India, the US-based company will partner with the Centre for Wildlife Studies (CWS) to support communities and conservation efforts in the Western Ghats, which is a UNESCO World Heritage Site and home to more than 30% of all of India’s wildlife species.
Take the lead – Chinese companies leave the world behind in the race for income from renewable projects, Bloomberg reports. S&P 500 companies produce merely 3.4% of their revenue from clean energy sources, roughly half as much as Shanghai index-listed firms, BloombergNEF has found. Additionally, the APAC region has more than 680 companies that draw more than half their revenue from clean energy sources such as renewable and biofuels, compared to 410 companies in the US and 430 in Europe, the Middle East and Africa combined, according to BloombergNEF.
Into the seaweeds – Seafields, a blue carbon business aiming to scale carbon removals using a seaweed called Sargassum, has announced in a release that it has successfully completed the world’s first seaweed bailing and sinking tests for carbon removal. The UK-based firm wants to developer a large seaweed farm off the coast of West Africa to generate removals credits.
REMOT control – Innovex, a Ugandan technology firm, and CarbonClear, a data-driven carbon credit standard, have formed a strategic partnership to advance offsetting in off-grid solar installations. The partnership leverages CarbonClear’s carbon avoidance programme and distributed ledger infrastructure to enable Innovex’s partners to issue Micro Carbon Avoidances (MCAs) based on real-time data from their off-grid solar installations. The calculations for the carbon credits are verified by a third-party and based on UN Clean Development Mechanism methodology, ensuring credibility. Innovex’s ‘REMOT’ IoT platform is already in use across eight African countries by over 64 solar businesses that focus on productive uses like solar water pumps and cold storage units.
Neu fund – Investment manager Neuberger Berman has introduced a Climate Innovation Fund, designated as Article 8 under the EU Sustainable Finance Disclosure Regulation. With 30-60 global equity holdings, it aims to invest in technologies that help mitigate climate change, Neuberger Berman said, adding that there is a €90 trillion funding gap that needs to be filled by 2050 to address climate change. Sarah Peasey, head of Europe ESG Investing at Neuberger Berman, said the fund aims to offer investors an opportunity to contribute to sustainable solutions while potentially seeing financial returns.
Frequent polluter – UK charity Possible has released research estimating that the average passenger would need to fly on enough flights emitting between 5.6–92.8 Mt of GHG/yr to qualify for frequent flyer membership programmes, GreenBiz reported. This equates to 112 times higher than the carbon footprint of a typical traveller. Lifetime membership status for frequent flyer programmes offered by British Airways and Virgin Atlantic can require more than 1,800 Mt/person, or 34 times more CO2 than the lifetime per capita quota of the carbon budget under a 1.5C global temperature increase scenario. The research called for an immediate end to frequent flyer programmes offered by UK airlines, suggesting to replace them with a frequent flyer levy and kerosene tax to reduce “excessive, wasteful consumption of high-carbon travel”.
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