News and intelligence on carbon markets, greenhouse gas pricing, and climate policy
Updated: 21 min 47 sec ago
CP Daily: Wednesday March 22, 2023
A daily summary of our news plus bite-sized updates from around the world.
Voluntary carbon market commands united offence in face of recent criticism -experts
One of the biggest challenges facing the voluntary carbon market (VCM) is presenting a united front in the face of criticism, speakers at the North American Carbon World said Wednesday, noting this should include backing a learning-by-doing model that emphasises progress and impact.
Washington needs “flexibility to acquiesce” to California in carbon market linkage pursuit
Washington state should have the ability to alter its WCI-modelled cap-and-trade programme and more closely align with California as the jurisdictions pursue linkage, though it is difficult to say whether full fungibility between the two carbon markets as currently structured could take place, a conference heard Wednesday.
RGGI states to look into zeroing out allowance caps by 2040
The 11 RGGI member states will look into ratcheting down yearly allowance caps to zero by 2040 as one possible scenario in the power sector carbon market’s third programme review, according to a document posted Wednesday.
New South Wales’ stringent treasury climate guidelines could be a sign of things to come -analysis
The Australian state of New South Wales has implemented tough new Treasury guidelines that one expert says applies a carbon price through regulation, would make new fossil fuel projects untenable, and could be easily applied to other state and federal jurisdictions.
Low initial demand to register federal Canadian offset projects due to overlapping protocol
The Canadian federal offset system has only received one project application since its publication in June because its first protocol is already covered by the provinces, according to the government agency tasked with running the programme.
CIX to launch nature-based standardised contract in Q2
Climate Impact X (CIX) is set to launch its nature-based standardised contract on its upcoming spot trading platform, addressing market concerns over project delivery risk, market-representative pricing, and fragmented liquidity in the voluntary carbon market (VCM), it announced on Thursday.
California YoY compliance offset issuance falls nearly 60% through Q1
California offset issuance over a two-week period dropped by more than 50% week-over-week for the second time in a row, with year-to-date levels cratering compared to the same period in 2022, data from state regulator ARB published Wednesday showed.
EU lawmakers fear greenwashing as a consequence of carbon farming
Members of the European Parliament expressed concerns on Wednesday about the risks of greenwashing linked to carbon farming, during a public hearing with experts.
Global tech giants look to bolster carbon removal market
Global tech giants are continuing to support the nascent voluntary carbon removals market, with Microsoft and Google on Wednesday both announcing investment and initiatives.
EUA investment case growing stronger as market faces shortfalls, increased demand, fund says
EUA prices are likely to rise in the coming two years as utilities catch up on forward hedging following last year's energy crisis, magnifying the impact of a supply shortfall as the market begins to anticipate the impact of cuts in free allocation, according to executives at a European investment firm.
EU makes plans to force companies to say more about their carbon credit use
EU proposals to tackle greenwashing launched on Wednesday would force companies active in the bloc to disclose where they acquire their carbon credits and whether the units are backed by recognised methodologies, seeking to open up the little-regulated voluntary carbon market (VCM).
Cookstove hot air concerns shared by rating agency, although proponents hit back
Almost all sampled cookstove projects have been given low scores by a carbon credit rating agency, echoing an academic report that claimed rife over-crediting even as proponents said the work mischaracterised current practices and downplayed other benefits.
Global carbon allowance revenues rise 9% to $63 bln record in 2022 -report
A total of more than $63 billion was raised from the sale of carbon allowances across 28 emission trading systems (ETS) in 2022, according to a report published Wednesday, with soaring prices in the EU's carbon market driving revenues to a new record.
Euro Markets: Midday Update
European benchmark carbon prices gyrated around the key €90 level for most of Wednesday morning as traders eyed the expiry of the March options contract early in the afternoon, though some weakness was seen after exchange data showed a sharp reduction in investment funds' long positioning last week.
Bank says govt regulations needed to ensure well-functioning voluntary biodiversity credit market
The voluntary market for biodiversity credits is emerging on the back of increased pressure on corporations to report on their impact on nature and set their own targets, but government regulations can help drive demand and ensure a well-functioning market that buyers can trust, according to the Commonwealth Bank.
DRC province signs jurisdictional REDD+ deal for peatland carbon sequestration
A province holding three-quarters of the peatland in the Democratic Republic of the Congo has signed a jurisdictional nested REDD+ agreement with a Singapore-headquartered project developer.
New Zealand to search for gross emissions reductions potential in new ETS review
The New Zealand government has launched a new review of its emissions trading scheme to figure out if and what changes are needed to encourage business to transition away from fossil fuels and support GHG removals.
Global energy firm seals deal for 11.5 mln cookstove carbon credits using new MRV tech
A French-headquartered global energy firm has penned a long-term deal to buy up to 11.5 million carbon credits sourced from projects in Cambodia and Bangladesh, which the parties in the deal said was the first major sale of offsets using the Gold Standard’s digital verification methodology.
StoneX teams up with ACX to create digital carbon marketplace in the US
Nasdaq-listed financial services firm StoneX Group has signed an agreement with AirCarbon Exchange (ACX) to create a digital carbon marketplace in the US as part of the StoneX platform, the two companies said on Wednesday.