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G7, G20 to push international climate ambition

  • Market: Emissions
  • 25/11/21

The G7 and G20 summits could act as "accelerators" of international climate ambitions, as Germany's incoming government pledges to take on a leading role in international climate policy during Germany's G7 presidency in 2022.

The parties forming Germany's prospective new government, in their coalition agreement presented on 24 November, pledged that Germany will use its G7 presidency to establish climate partnerships, along with an "international climate club" which would be open to all countries.

The parties — the Social Democrat SPD, the Greens and the pro-business FDP — pledged that the new government they will form will aim to strengthen multilateral co-operation "within the scope of the UN's Sustainable Development Goals and the Paris Agreement".

The new government will also aim to extend German environmental, climate and energy co-operations. These co-operations would focus on boosting growth in renewable power capacity and its corresponding infrastructure, and on green hydrogen production, among other things, the coalition parties said.

The new government would also fulfil its commitment towards the $100bn climate finance pledge, potentially raising its commitment in the future.

Wilfried Rickels of the Kiel Institute for the World Economy said today that the coalition's push for a leading role in climate policy during Germany's G7 presidency "emphasises the necessarily international nature of climate policy".

Policy analyst Lisa Katharina Schmid of the federal environment ministry, which is led by caretaker environment minister Svenja Schulze of the SPD, said on 24 November that G7 and G20 venues offer the possibility of annual "check-ins" which will build up pressure to raise climate ambition.

Germany's federal environmental office UBA is hoping for the G7 and G20 summits to act as an "accelerator" for their members' climate ambitions in the period to 2030, UBA climate expert Juliane Berger said. A study commissioned by UBA which was presented this week, "Advancing multilateral cooperation on climate action", suggests using international venues such as G7 and G20 as "stepping stones".

Non-governmental organisation E3G's Berlin-based policy adviser Jennifer Tollmann pointed out the growing role that nationally determined contributions (NDCs) play at G7 and G20 summits. At the last G20 summit, which took place in Rome last month ahead of the UN Cop 26 climate conference in Glasgow, leaders of the club's countries agreed on reviewing their NDCs, among other climate-related pledges.

Deputy director general at the German federal environment ministry Norbert Gorissen stressed the importance of a "serious follow-up" on the many announcements made at Cop 26. This responsibility falls to the UK presidency of Cop 26, and on all other parties having initiated the announcements, but civil society, think-tanks and international organisations also have a role to play, Gorissen said.

International co-operation played a big role at Cop 26, Gorissen said, adding that "it must play an even stronger role afterwards". The growing role of international co-operation is reflected in the success at Cop 26 in reaching an agreement on the rules for Article 6 — covering international carbon markets — of the Paris climate agreement, Gorissen argued.

The new federal government, under caretaker finance minister Olaf Scholz of the SPD, is expected to be sworn in in the week of December 6, once party members give the green light to the coalition agreement.


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Australia’s Cleanaway, LMS to produce landfill gas


20/12/24
News
20/12/24

Australia’s Cleanaway, LMS to produce landfill gas

Sydney, 20 December (Argus) — Australian waste management operator Cleanaway and bioenergy firm LMS Energy will partner on a 22MW landfill gas-fired power station at Cleanaway's Lucas Heights facility near the city of Sydney. Cleanaway, Australia's largest publicly listed waste management firm, will receive exclusive rights to landfill gas produced at Lucas Heights for 20 years, the company said on 20 December. LMS will invest A$46mn ($29mn) in new bioelectricity assets, including a 22MW generator. Tightening gas markets owing to underinvestment in new supply has led to speculation that more waste-to-energy plants could be brought on line in coming years, especially in the southern regions. Landfill gas projects receive Australian Carbon Credit Units (ACCUs) by avoiding methane releases, with the total ACCU quantity calculated after a default baseline of 30pc is deducted for projects beginning after 2015. A total of 42.6mn ACCUs were issued to landfill gas projects since the start of the ACCU scheme in 2011, 27pc of the total 155.7mn and the second-largest volume after human-induced regeneration (HIR) methods at 46.68mn. Canberra is reviewing ACCU issuance for these projects, and wants most projects to directly measure methane levels in captured landfill gas to avoid overestimation. Landfill gas operations which generate electricity from the captured gases can also receive large-scale generation certificates (LGCs). LMS has 70 projects currently registered at the Clean Energy Regulator (CER) and has received 24.57mn ACCUs since the start of the scheme. This is the largest volume for any single project proponent, just ahead of Australian environmental market investor GreenCollar's subsidiary Terra Carbon with 23.57mn units. Cleanaway received almost 1mn ACCUs from two projects and has four other projects that have yet to earn ACCUs. By Tom Major and Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Trump backs new deal to avoid shutdown: Update


19/12/24
News
19/12/24

Trump backs new deal to avoid shutdown: Update

Adds updates throughout Washington, 19 December (Argus) — US president-elect Donald Trump is offering his support for a rewritten spending bill that would avoid a government shutdown but leave out a provision authorizing year-round 15pc ethanol gasoline (E15) sales. The bill — which Republicans rewrote today after Trump attacked an earlier bipartisan agreement — would avoid a government shutdown starting Saturday, deliver agricultural aid and provide disaster relief. Trump said the bill was a "very good deal" that would also include a two-year suspension of the "very unnecessary" ceiling on federal debt, until 30 January 2027. "All Republicans, and even the Democrats, should do what is best for our Country, and vote 'YES' for this Bill, TONIGHT!" Trump wrote in a social media post. Passing the bill would require support from Democrats, who are still reeling after Trump and his allies — including Tesla chief executive Elon Musk — upended a spending deal they had spent weeks negotiating with US House speaker Mike Johnson (R-Louisiana). Democrats have not yet said if they would vote against the new agreement. "We are prepared to move forward with the bipartisan agreement that we thought was negotiated in good faith with House Republicans," House minority leader Hakeem Jeffries (D-New York) said earlier today. That earlier deal would have kept the government funded through 14 March, in addition to providing a one-year extension to the farm bill, $100bn in disaster relief and $10bn in aid for farmers. The bill would also provide a waiver that would avoid a looming ban on summertime sales of E15 across much of the US. Ethanol industry officials said they would urge lawmakers to vote against any package without the E15 provision. "Pulling E15 out of the bill makes absolutely no sense and is an insult to America's farmers and renewable fuel producers," Renewable Fuels Association chief executive Geoff Cooper said. If no agreement is reached by Friday at 11:59pm ET, federal agencies would have to furlough millions of workers and curtail services, although some agencies are able to continue operations in the event of a short-term funding lapse. Air travel is unlikely to face immediate interruptions because key federal workers are considered "essential," but some work on permits, agricultural and import data, and regulations could be curtailed. The US Federal Energy Regulatory Commission has funding to get through a "short-term" shutdown but could be affected by a longer shutdown, chairman Willie Phillips said. The US Department of Energy expects "no disruptions" if funding lapses for 1-5 days, according to its shutdown plan. The US Environmental Protection Agency would furlough about 90pc of its nearly 17,000 staff in the event of a shutdown, according to a plan it updated earlier this year. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Power supply crisis to lift Ecuador’s GHG emissions


19/12/24
News
19/12/24

Power supply crisis to lift Ecuador’s GHG emissions

Quito, 19 December (Argus) — Ecuador's greenhouse gas emissions have likely risen in 2024 as the country grappled with an ongoing power supply crisis because of severe droughts, interim energy minister Ines Manzano told Argus . Although the government has yet to calculate the exact percentage increase in GHG emissions, Manzano confirmed the increase after six months of droughts that led to a significant decline in hydropower output and extensive daily power outages of 3-14 hours from 23 September-20 December. Thermoelectric plants consumed an average of 26,560 b/d of diesel, fuel oil, natural gas and crude residue from January-October 2024, a 35pc year-on-year increase, Petroecuador data show. This trend is expected to continue through the end of the year as Ecuador will have installed and rented an additional 400 MW of thermoelectric capacity, including land-based plants and power barges by December. This expansion represents a 5pc increase in the country's total installed power capacity. In 2023, thermoelectric power plants emitted 3.7mn t of CO2 equivalent (CO2e), marking a year-on-year increase of 48pc, data from the energy ministry show. Drought-related challenges also led to 35 days of blackouts from October-December 2023, increasing reliance on thermoelectric power. That year, emissions from thermoelectric plants accounted for 9pc of the 43mn t of CO2e emitted by the energy sector, up from 6pc in 2022. The outlook for 2025 suggests little relief from the current trend. By April 2025 the government plans to bring online an additional 1.3GW of thermoelectric capacity, compared with April 2024, while adding only one new hydroelectric plant — the 204MW Toachi-Pilaton. By Alberto Araujo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Viewpoint: Foundations laid for increased VCM liquidity


19/12/24
News
19/12/24

Viewpoint: Foundations laid for increased VCM liquidity

London, 19 December (Argus) — The next 12 months will establish whether the work done by proponents of the voluntary carbon market in 2024 will yield some much-needed buyer confidence and liquidity. Concerns over the integrity of voluntary carbon credits, particularly the authenticity of their climate impact and their alleged excess issuance, have roiled the market over the past year. In the nature-based sector particularly, buying has been hesitant and intermittent, with prices losing substantial ground since the start of 2023. Trade levels for Indonesia's Katingan reducing emissions from deforestation and degradation (REDD+) project, which hosts some of the most actively-traded credits of any nature-based activity, fell from $5.15/t CO2e in January to $3.80/t CO2e in December for credits of 2019 vintage. Deals agreed for credits generated in 2021 by Pakistan's Delta Blue Carbon mangrove restoration project, which comprises emissions removal and represents the upper end of the nature-based price range, have fallen from $30/t CO2e to $26.75/t CO2e. Proponents of the VCM have hailed the Integrity Council for the Voluntary Carbon Market's (ICVCM) Core Carbon Principles (CCPs) as a potential solution, suggesting that the rigorous requirements carbon methodologies must meet to earn the certification should assure buyers of the legitimacy of the credits they issue, while allowing sellers to charge a premium and leverage more upstream investment. But since the first raft of methodologies were approved for the CCPs in June, trade for credits bearing the label has been severely limited, with only a handful of deals reported. Heading into 2025, the ICVCM must walk a tightrope as it goes about approving more methodologies that could yield the intended rise in liquidity. The multi-stakeholder initiative decided against making a swathe of renewable energy methodologies operated by carbon registry Gold Standard eligible for the CCPs at the start of August, which cut off about a third of the market from accessing the label. But the group has also come under fire for approving methodologies too hastily. One of the members of its expert panel stepped down in December after the ICVCM approved three REDD+ methodologies, arguing that by doing so it had set a precedent to flood the market with "millions" of credits that are over-issued and produced by projects that do not require carbon finance to run. Prospects for the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) are similar. The first phase of the scheme began this year and is due to run until 2026. Trade has thus far been minimal, but with the late-October approval of the two largest registries in the world, Verra and Gold Standard, the foundations have been laid for a substantial increase in 2025. Developers with projects certified by Verra and Gold Standard, along with the American Carbon Registry, Architecture for REDD+ Transactions, the Climate Action Reserve and the Global Carbon Council, can now sell Corsia-eligible credits directly to airlines seeking to comply with the first phase of the scheme, allowing them to potentially tap into a significant new channel of demand. In order to be eligible for Corsia, carbon credits must bear a letter of authorisation (LOA). These must be issued by the competent national authority to certify that the credit can be traded as an international transfer of mitigation outcome and used by other countries towards their own nationally determined contribution. The establishment of the Paris Agreement Crediting Mechanism (PACM) under Article 6.4 at the UN Cop 29 conference in November is likely to increase the proliferation of LOAs and the number of Corsia credits available on the market in 2025. It is unclear how much impact the long-awaited deal on Article 6 will have in and of itself before the end of 2025 though, beyond unlocking demand from countries seeking to make progress on their nationally determined contributions. By Felix Todd Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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