Cop: Singapore partners Fiji, Rwanda on carbon credits

Spanish Market: Emissions
04/12/23

Singapore has signed agreements with Fiji and Rwanda on the sidelines of the UN Cop 28 climate summit, to collaborate on creating carbon credit frameworks for the transfer of credits.

Singapore has signed similar but separate agreements with Fiji and Rwanda to co-operate on creating legally binding implementation agreements that set out a bilateral framework for the international transfer of correspondingly adjusted carbon credits. The agreements include the criteria and processes for trading carbon credits under Article 6 of the Paris agreement.

Once the implementation agreements are completed, companies in Singapore that are liable to be subjected to carbon tax can purchase carbon credit projects to offset up to 5pc of their taxable emissions.

A corresponding adjustment refers to the transfer of emissions reductions across countries' greenhouse gas inventories, in a manner that prevents the double-counting of emission reductions and removals towards buyer and host countries.

Singapore plans to raise its carbon tax to S$25/t ($19/t) in 2024-25 and then S$45/t in 2026-27 from the current rate of S$5/t. This will reach about $60/t by 2030, "making it one of the highest in Asia," said senior minister Teo Chee Hean at the Cop 28 summit.

The country in October set out the eligibility criteria for carbon credits to be used under its International Carbon Credit (ICC) framework. These include "realistic, defensible and conservative" estimates of emissions reductions compared with a plausible baseline scenario, and permanence, whereby the carbon credits must be derived from emissions reductions that are not reversible.

By Prethika Nair

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23/04/25

UN reminds leaders GHG plans need to be 1.5°C-aligned

London, 23 April (Argus) — Leaders, including from major emitters China and the EU, committing today to put forward "ambitious and robust [climate] plans as soon as possible" is a message of hope, but they should align with the Paris Agreement's goals and "speed up a just transition away from fossil fuels," UN secretary-general Antonio Guterres warned. China today reiterated that it will submit a new national climate plan which covers "all economic sectors and all greenhouse gases", according to Guterres. "This is extremely important for climate action", Guterres said. China is the world's highest-emitting country, with plans to reach net zero emissions by 2060 — behind the mid-century target that climate science suggests to avoid the worst impacts of a heating world. Guterres spoke immediately after a meeting that he and Brazil's president Luiz Inacio Lula da Silva convened, in which 17 world leaders participated, including China's president Xi Jinping. Brazil is hosting the UN Cop 30 climate summit in November. The meeting was arranged so that world leaders could hear from one another that addressing climate change remains a priority, a senior UN official said. "Leaders need reassurance that they're not acting alone", the UN official said. "Dissenters and fossil fuel interests may try to stand in the way," Guterres said, but "no group or government can stop the clean energy revolution". The EU's and China's NDCs — not yet submitted — will act as useful references, Brazil's official noted. European Commission president Ursula von der Leyen and European Council president Antonio Costa also participated in the meeting today. Participants were limited to heads of state or government and included chairs of the African Union, the Caribbean Community, the Association of Southeast Asian Nations and the Alliance of Small Island States. The EU still has yet to officially propose a 2040 climate target . It plans to derive its 2035 goal, which will form the basis of its NDC, from this. Senior officials from Brazil and the UN expect most country submissions by September. Cop 30, which will be held in the Amazonian city of Belem, will mark ten years since the landmark Paris accord was negotiated. It requires countries to review and revise climate plans — known as nationally determined contributions (NDCs) — every five years, increasing ambition. NDCs for the period up to 2035 are due to be submitted this year, to UN climate body the UNFCCC. NDCs are a crucial element in keeping to the temperature boundaries sought by the Paris agreement — limiting a rise in temperature to "well below" 2°C above pre-industrial levels and preferably to 1.5°C. Brazil's official acknowledged that this current round of NDCs may not go far enough to hit those goals, noting that "closing the gap" will be a key issue. The majority of countries missed a 10 February deadline to submit their NDCs for the period to 2035, while ambition varied among those completed. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India consults industries on emission intensity targets

23/04/25

India consults industries on emission intensity targets

London, 23 April (Argus) — The Indian government has launched a consultation on greenhouse gas emission intensity (GEI) targets for obligated entities under its forthcoming Carbon Credit Trading Scheme (CCTS). The GEI targets, also labelled as "Greenhouse Gases Emission Intensity Target Rules, 2025" by the Indian government, are set to contribute to the country's nationally determined contribution (NDC) through emissions reduction, removal or avoidance, according to the official draft notification from the ministry of environment. The government has given liable companies until mid-June, or 60 days since publication on the official gazette on 16 April, to comment on the drafted GEI targets. These cover emissions from a total of 282 companies from four different sectors. The cement sector comprises more than 65pc of the list, with 186 companies, followed by the pulp and paper, chlor-alkali and aluminium sectors with respective 53, 30 and 13 companies each. The GEI targets comprise two compliance periods, 2025-26 and 2026-27, and can be achieved by either reducing emissions or by "purchasing carbon credits certificates from the Indian carbon market" according to the draft. Companies keeping emissions below the targets will be issued carbon credits. These can be either banked until the next compliance cycle, or sold to underperforming firms. Obligated entities that underperform and fail to submit carbon credits equivalent to the shortfall for compliance will be charged twice the average traded carbon price for the related compliance cycle. The price will be calculated by the bureau of energy efficiency, which sits within India's power ministry. The GEI targets are the latest instrument introduced by the Indian government to shape up its domestic carbon market. It first introduced the idea of a carbon market with the Energy Conservation bill in 2022. This was then followed by the Carbon Credits Trading Scheme in 2023 and the Detailed Procedure for Compliance Mechanism under CCTS in July 2024. By Nicola De Sanctis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New Zealand could raise ETS auction volumes by 2028-30

23/04/25

New Zealand could raise ETS auction volumes by 2028-30

Sydney, 23 April (Argus) — New Zealand's government should consider increasing auction volumes under the local Emissions Trading Scheme (ETS), as the existing surplus of carbon units has fallen faster than expected, the country's Climate Change Commission (CCC) said today. The CCC estimates 30.5mn New Zealand Units (NZUs) could be available for auctions over 2026-30, 13.6mn more than previously forecast, it disclosed on 23 April in its annual advice report to the climate change minister. The difference is mainly because the 2024 auctions did not sell all units available , and to lower industrial allocation forecasts because of plant closures, lower production and updated baselines, as well as other factors, the CCC said. This has prompted the commission to recalculate its central estimate to a surplus of 50.2mn units as of the end of 2024, down from the previous estimate of 68mn as of September 2023 . The government could readjust auction volumes over 2026-30, but the commission recommends the excess units to be "backloaded" over 2028-30, with a preferred option to auction 7mn in each of those three years, compared with the current schedule of 3.3mn for 2028, 2.4mn for 2029 and 1.7mn for 2030. Volumes are scheduled at 5.2mn for 2026 and 4.3mn for 2027 (see table) . Total private unit holdings in the New Zealand ETS registry, also known as the stockpile, fell to 150.4mn at the end of 2024 from 160.8mn the year before. This reflects that more NZUs have been surrendered for emissions liabilities over the past year than have been allocated into the market through auctions, industrial free allocation and forestry activities, the CCC noted. Price settings should not change The commission has also recommended that price control settings — the auction reserve price, or floor, and the cost containment reserve, or ceiling — remain as they are, only adjusting for inflation. The auction price floor is currently set at NZ$68 ($40.75) in 2025, NZ$71 in 2026, NZ$75 in 2027, NZ$78 in 2028 and NZ$82 in 2029, while the ceiling price — which triggers additional reserve volumes under the auctions — ranges between NZ$193-235 over that same period. NZU spot prices in the secondary market have been hovering just above NZ$50 in recent days, far below the 2025 auction price floor. Two of the four quarterly auctions of 2024 failed to clear as prices in the secondary market were lower than the NZ$64 floor last year . Prices around or above the current NZ$68 auction floor are needed to support gross emissions reductions in New Zealand, the CCC said, noting "a range of evidence" indicating that. The government will now need to consider the advice and conduct public consultation before making decisions in time for the regulations to be updated by 30 September this year and come into force on 1 January 2026. The government last year decided to more than halve auction volumes over 2025-29 , mostly following the CCC's advice. By Juan Weik NZU auction volumes and proposed updates mn units 2026 2027 2028 2029 2030 Current auction volumes 5.2 4.3 3.3 2.4 1.7 Proposed updates 5.2 4.3 7 7 7 Source: Climate Change Commission Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

FERC commissioner Phillips resigns from agency

22/04/25

FERC commissioner Phillips resigns from agency

Washington, 22 April (Argus) — Democratic commissioner Willie Phillips has resigned from the US Federal Energy Regulatory Commission (FERC) after serving more than three years at an agency responsible for permitting natural gas infrastructure and regulating wholesale power markets. Phillips' departure will clear the way for President Donald Trump to nominate a replacement at FERC, who once confirmed by the US Senate would provide Republicans a 3-2 majority for the first time since 2021. Phillips, whose term was not set to expire until June 2026, had a reputation for negotiating bipartisan deals on contentious orders involving pipelines and power market issues in the two years he served as FERC's chairman under former president Joe Biden. Phillips has yet to release a statement explaining his abrupt resignation. But Trump has already fired Democratic commissioners and board members at other agencies that, like FERC, are structured as independent from the White House. Two of the fired Democrats, who were serving at the US Federal Trade Commission, have filed a lawsuit that argues their removal was unlawful under a 1935 decision by the US Supreme Court. The White House did not respond to a question on whether it had pressured Phillips to resign. FERC chairman Mark Christie, a Republican, offered praise for Phillips as a "dedicated and selfless public servant" who sought to "find common ground and get things done to serve the public interest". Christie for months has been downplaying the threats to FERC's independence caused by Trump's executive order that asserts sweeping control over FERC's agenda. Energy companies have come to depend on FERC in serving as independent arbiter in disputes over pipeline tariffs and electricity markets, without the consideration of political preferences of the White House. Former FERC chairman Neil Chatterjee, a Republican who served in Trump's first term, said in a social media post it was "disappointing" to see Phillips pushed out after he "played it straight" in his work at the agency. As chairman, Phillips was able to authorize a "massive LNG project" — the 28mn t/yr CP2 project — at a time when Biden had sought to pause LNG licensing, Chatterjee said. Separately, Paul Atkins was sworn in as the chairman of the US Securities and Exchange Commission (SEC) on 21 April, after the US Senate voted 52-44 earlier this month in favor of his confirmation. Atkins was previously the chief executive of financial consulting firm Patomak Global Partners and served as an SEC commissioner from 2002-08. Republicans will now have a 3-1 majority at the SEC. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

NEa tracks first maritime CO₂ submissions

22/04/25

NEa tracks first maritime CO₂ submissions

Amsterdam, 22 April (Argus) — The Netherlands Emissions Agency (NEa) has reported that shipping companies are being held financially accountable for the first time for their CO₂ emissions under the EU Emissions Trading System (ETS). The companies are now required to report their 2024 emissions and will have to surrender corresponding carbon allowances by 30 September. Of the 378 shipping companies assigned to the Netherlands by the European Commission, roughly 60pc met the initial 31 March deadline for submitting verified emissions reports. The group represents more than 1,400 vessels, around 75pc of which are operated by companies registered in the Netherlands and 25pc outside the EU. An additional 14pc of companies filed their reports after the deadline, bringing overall compliance to 74pc as of mid-April. NEa expects more reports to follow. Under the revised EU ETS , shippers have to surrender ETS allowances for 50pc of GHG emissions for extra-EU journeys. Surrender obligations for intra-EU shipping are phased in at 40pc of verified emissions reported for 2024, 70pc for 2025 and 100pc for 2026 onwards. From 2026, shipping firms will also have to report emissions of methane (CH₄) and nitrous oxide (N₂O). The EU sees the move as essential to meeting its climate targets, as shipping alone accounted for over 124mn t of CO₂ emissions in 2021, according to the commission's report. By Anna Prokhorova Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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