Cop 27: Germany sceptical on US carbon offset proposal
A senior official at Germany's ministry for economic co-operation and development today expressed scepticism about an upcoming US proposal to develop a carbon credit mechanism for private companies, which is aimed at funding climate mitigation projects in developing nations.
Speaking on the sidelines of the Cop 27 UN climate summit in Sharm el-Sheikh, state secretary Jochen Flasbarth said the ministry was "familiar with this proposal" but that a certain "amount of scepticism" remained.
Flasbarth questioned whether the US proposal, to be presented at the summit in Sharm el-Sheikh on 9 November, "is actually something that ought to replace what we as industrialised countries have pledged with regard to our partner countries". He said Germany is already in talks with countries like Indonesia and India and "many others" on a bilateral level and that carbon markets needed to be separate from those discussions.
Flasbarth however said Germany did not oppose carbon offsetting, and noted the country had helped create the necessary framework for the implementation of Article 6 at the Cop 26 summit in Glasgow last year.
Related news posts
Singapore launches carbon market alliance
Singapore launches carbon market alliance
Singapore, 31 July (Argus) — Singapore today launched the Singapore Carbon Market Alliance (SCMA), which aims to scale up the availability and trade of high-quality carbon credits that are in line with Article 6 of the Paris Agreement. The SCMA has been jointly established by Singapore's Economic Development Board and the International Emissions Trading Association (Ieta), a non-profit organisation that works with businesses to help them achieve net zero targets. The SCMA is "by invitation only" and will connect international developers and suppliers of carbon credits with Singapore-based corporate entities that are interested in purchasing Article 6 carbon credits, Ieta said. In order to be eligible for Article 6, carbon credits must feature a letter of authorisation for corresponding adjustment, which means the country buying the credits reduces its emissions in line with the volume purchased, while the seller adds the same number to its own emissions inventory to avoid double counting. The SCMA will be a platform for Singapore's carbon services and trading ecosystem to convene, Singapore minister of state for culture, community and youth, Low Yen Ling, said on 31 July. "It will bring together businesses with strong climate commitments, trusted carbon services firms and government agencies to share expertise and networks, starting with the Article 6-compliant carbon credits." The launch of the SCMA is the latest in a series of moves that Singapore has taken to establish a carbon market as part of its decarbonisation goals, and demand for high-quality carbon credits is growing in the country. Singapore in December published a list of eligible international carbon credits under the International Carbon Credit framework, which companies can use to offset up to 5pc of their carbon tax liability . A consortium of firms led by the Singapore Business Federation earlier this year announced that it will set up a registry to help local businesses establish more accurate emission inventories, with the first phase targeted to be ready by the end of the year. Singapore's carbon tax has been set at S$25/t ($18/t) for 2024-25 and will subsequently be raised to S$45/t in 2026-27. The tax will be reviewed with a long-term view of increasing it to S$50-80/t by 2030. By Prethika Nair and Felix Todd Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
China’s total carbon credit trade hits 465mn t, $3.7bn
China’s total carbon credit trade hits 465mn t, $3.7bn
Singapore, 30 July (Argus) — Cumulative trading volumes on China's national carbon market — which its environment ministry (MEE) described as the world's largest — hit 465mn t as of the end of June, with a transaction value of about 27bn yuan ($3.72bn). Overall carbon prices have also climbed steadily from Yn48/t when the carbon market first started in July 2021 to close at Yn91.60/t on 26 July, marking a 91pc increase, said MEE spokesperson Pei Xiaofei on 29 July. Average monthly carbon trading volumes hit 3.67mn t during January-June this year, almost trebling from a year earlier, according to a carbon market progress report that MEE released last week. China Emissions Allowance trade volumes were 263mn t with a transaction value of Yn17.26bn during the emissions trading scheme's second compliance cycle from 1 January 2022 to 31 December 2023, the report showed. These rose by 47pc and 125pc respectively from the first compliance cycle . Participating companies also increased by almost 50pc from the first cycle, with the number of participating key emitting entities also climbing by 32pc. China's national carbon market consists of a compliance market and a voluntary market, with the latter relaunching in January after a seven-year suspension . The market currently includes 2,257 key emitting entities in the power generation industry, which covers about 5.1bn t/yr of carbon dioxide (CO2) emissions and accounts for over 40pc of China's total emissions, according to MEE. Indonesia Carbon trading has also picked up in other Asia-Pacific countries. Indonesia's carbon transactions in the power generation sector in 2023 totalled 84.17bn rupiah ($5.2mn) and represented 7.1mn t of CO2 equivalent (CO2e), announced the secretary-general of the ministry of energy and mineral resources (ESDM) Dadan Kusdiana last week. Indonesia's carbon trading roadmap prepared by the ESDM consists of three phases and has the potential to reduce greenhouse gas emissions by at least 100mn t of CO2e by 2030, said Dadan. The three phases will "gradually increase CO2 emission standards for power plants, especially steam-powered and coal-powered plants," he said. Carbon trading will gradually be applied to all fossil fuel power plants, including those under state-owned power utility PLN. Indonesia launched its carbon exchange in September 2023 . By Tng Yong Li and Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Air New Zealand abandons 2030 emissions target
Air New Zealand abandons 2030 emissions target
Sydney, 30 July (Argus) — State-controlled carrier Air New Zealand has announced its withdrawal from the Science Based Targets initiative, saying its 2030 emissions reduction goal is unachievable because of issues outside the airline's control. It cited factors including affordability and availability of alternative jet fuels, as well as a lack of global and domestic regulatory and policy support. "In recent months, and more so in the last few weeks, it has also become apparent that potential delays to our fleet renewal plan pose an additional risk to the target's achievability," chief executive Greg Foran said on 30 July. Air New Zealand said it will develop a new short-term carbon emissions reduction target while working to transition away from fossil fuels and reach net zero emissions by 2050. The company was aiming to cut its carbon intensity by 28.9pc before 2030 from a 2019 baseline, or an absolute reduction in emissions by 16.3pc over the same period, pledging to consider electric, hybrid and green hydrogen aircraft as part of its decarbonisation strategy. It expected sustainable aviation fuel (SAF) would comprise 10pc of jet fuel use in the 2029-30 fiscal year as part of the target. But New Zealand's previous Labour party government cancelled a planned biofuels mandate early last year in a blow to the sector's domestic manufacturing hopes. Air New Zealand took delivery of a 500,000 litre SAF shipment last month and has a deal with Finnish producer Neste for 7,200t for use at Los Angeles airport , as no SAF is currently produced in New Zealand. But Air New Zealand said it was paying a fourfold premium on the price of jet fuel for the imports, advocating for a SAF-specific mandate to spur domestic production in its 2023 sustainability report. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Treasury, Brazil agree on climate pact
US Treasury, Brazil agree on climate pact
Sao Paulo, 26 July (Argus) — The US Treasury and Brazil's finance ministry will work together on a climate agenda, the countries said during a G20 working group meeting in Rio de Janeiro. The pact will focus on four fronts: bolstering clean energy supply chains, including developing policy tools to attract private sector investment; supporting efforts to improve voluntary carbon markets; securing financing and developing "innovative solutions" to conserve and restore nature and biodiversity, including through the multilateral development banks and climate funds; and facilitating countries' access to multilateral climate funds resources. The partnership was announced on Friday by both Brazil's finance minister Fernando Haddad and US Treasury Secretary Janet Yellen. "Advancing work on climate and on nature and biodiversity can bring benefits not only to both of our economies but also to the region and to the global economy," Yellen said. Haddad added that the two countries "want to work together more closely." The G20 — which is presided by Brazil this year — is holding this week the finance leaders' meeting. The group announced on Thursday a new fund to finance sustainability programs in the Amazon rainforest. This is also not the first time the G20 has discussedbe easing access to climate funds. A working group said in May that both countries and individual cities' access to such resources needs to be easier. The G20 announced other joint agreements this week, including the taxation of large fortunes and efforts to reduce inequality, poverty and world hunger. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more