Very interesting Australian side event on Indo-Pacific Carbon Offset Scheme and future of offsetting in context of regional pathways to net zero. A couple of my thoughts follow!
https://twitter.com/TennantReed/status/1457649152679022604
Where does Australia's initiative fit in? Early days. Japan and Korea pursuing their own bilaterals, plus Article 6 global framework, and appear interested to talk/find out more but not exactly queuing up to fold their schemes together with Australia's new thing.
Australian authorities keen to build up larger more liquid markets. Thinking on what will drive local demand is (necessarily, understandably) fuzzy. All-in on "a ton is a ton", full fungibility provided accounting is strong.
Analogy: they're keen on a strong hull for the good ship International Carbon Markets, but not showing a lot of interest in internal bulkheads to prevent flooding should there be a breach in the hull.
Meanwhile Japanese officials' view that new Asian gas generators will not be stranded because they can be upgraded to burn H2 is a bit brave. Generators supplying bulk electricity from H2 are going to get slaughtered, even at USD$1/kg. Peakers and backup have more of a shot.
Anyway, very interesting event - worth watching the recording when available!
Just to enlarge on the H2 generator thought - a world with clean H2 at USD$1/kg is one where renewables are cheap cheap cheap and even in Japan they will be taking much of the bulk power market.
(same deal if you think SMRs or whatever are going to be great. Bulk MWh from H2: no)
(same deal if you think SMRs or whatever are going to be great. Bulk MWh from H2: no)
(that said, flexibility and backup have high importance and H2 generators could be important in that regard. v different business model and nobody's guaranteed to prosper in it just because they have a CCGT sitting around)
• • •
Missing some Tweet in this thread? You can try to
force a refresh
