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TOP STORY
Offset registry launches defence of forest carbon methodologies that academics found flawed
An offset registry and standards body on Tuesday countered criticism from a recent academic study that alleged over-crediting in improved forest management (IFM) protocols used in both voluntary and compliance carbon markets.
VOLUNTARY
Canadian VER investor working to execute deal for reforestation carbon removal project
A Toronto-headquartered voluntary carbon credit investor is looking to diversify its existing portfolio of clean cookstove projects with an afforestation and reforestation (AR) endeavour, while reporting a net loss in the fourth quarter, according to a recent financial filing.
Clean cookstoves need a carbon price of $10, says project developer
Clean cookstove projects need a carbon credit price of around $10/tonne to maintain the viability of the market and drive innovation, a webinar heard Tuesday, which is far higher than the current levels for standardised spot prices for the sector.
Finnish tech firm launches AI-based tool to monitor forest biodiversity, CO2 storage in near real-time
A Finnish technology company has launched an artificial intelligence-based product designed to track and monitor forest biodiversity and carbon storage in near real-time.
AgriProve, RMIT, Grantham Foundation collaborate to improve soil carbon monitoring protocols
Australian project developer AgriProve has announced a partnership with the Royal Melbourne Institute of Technology (RMIT) and the Grantham Foundation to improve soil carbon monitoring protocols.
Carbon market experts team up to launch new firm to develop NBS projects
A team of carbon market experts has launched a company that seeks to unlock capital at scale for nature-based solutions (NBS), focusing on projects in the Global South, they announced on Tuesday.
EMEA
Bringing road transport, buildings into main EU ETS could result in major climate policy cost savings, study finds
Bringing emissions from road transport and buildings into the EU ETS could result in a near 50% reduction in the economic costs of achieving the bloc’s climate policies, compared to scenarios that include launching a second regional cap-and-trade market to regulate those two sectors.
US, EU strengthen cooperation on energy and Ukraine
The EU and US highlighted their “greater than ever” relationship at an Energy Council ministerial meeting in Brussels on Tuesday, while EU leaders will have a more challenging time this week trying to warm up relations with China on the other side of the world.
Euro Markets: EUAs post first loss in six days after reaching three-week high as gas tumbles
EUA prices snapped a five-day winning streak on Tuesday, reaching a three-week high in light trading as the holiday period has stripped the market of liquidity, before falling back to end the day lower amid a significant drop in gas prices that saw the TTF market give up all of Monday’s gains and more.
AMERICAS
States benefit from continuous RGGI membership -report
Participation in the power sector RGGI carbon market significantly contributed to reducing CO2 pollution and benefitted consumers, and member states should direct improvements arising from the scheme’s ongoing third programme review towards environmental justice communities, a US-based environmental non-profit said Tuesday.
Massachusetts initiates stakeholder process to operationalise Clean Heat Standard
The Massachusetts Department of Environmental Protection (MassDEP) on Tuesday published a stakeholder discussion document detailing its intent to implement a Clean Heat Standard (CHS) as quickly as 2024.
ASIA PACIFIC
NZ govt’s confidential consultation on exotic forestry sparks outrage from Maori groups
Maori business groups have slammed the New Zealand government for forcing participants of a consultation to sign non-disclosure agreements (NDAs) over an exotic forestry proposal in the ETS.
BIODIVERSITY (FREE TO READ)
European NGOs launch campaign to push Nature Restoration Law over the line
More than 200 environmental NGOs have joined forces to launch a new campaign aimed at securing sufficient support among national governments and members of the European Parliament to get the proposed EU Nature Restoration Law adopted by the end of the year.
COMMENT
Four things holding back the voluntary carbon market
On March 29th, a group of climate leaders including Zeke Hausfather of Stripe, Alicia Seiger of Stanford, Elizabeth Sturcken of Environmental Defense Fund, Zack Parisa of NCX, and moderator, Shyla Raghav from CO2 – TIME gathered in NCX’s “Treehouse” in San Francisco to discuss and debate the challenges facing nature-based solutions, and the voluntary carbon market. Here are a few takeaways from their discussion.
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CONFERENCES
Carbon Forward Asia – May 2-3, Singapore/Online: Carbon Forward is coming to Asia! Join us in Singapore or watch the conference online, and gain valuable insights into the trends and developments in carbon pricing throughout the Asia Pacific region. We will discuss investment opportunities across compliance and voluntary carbon markets, as well as transport initiatives such as CORSIA and SAF for aviation and shipping sector programmes, the impact of the EU’s carbon border adjustment mechanism (CBAM), CCS crediting, developments under Article 6 of the Paris Agreement, corporate climate goals, and other exciting topics. We are curating a high-level programme for this rapidly-evolving region, with the agenda and speaker line-up to be released soon. Early Bird tickets are now available. Purchase yours now
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Carbon Pulse has teamed up with CME Group to provide its clients with regular updates on the global carbon markets. Check out these briefs for the latest insights on pressing trends and events impacting markets, published every other week. Registration required
INTERNATIONAL
Protesters beware – Organisers of a recent climate and health conference in the UAE warned attendees not to criticise corporations or protest, raising alarm ahead of the country’s hosting of the COP28 climate summit later this year, the Financial Times reports. Written guidance at the Forecasting Healthy Futures event last month in Abu Dhabi instructed speakers and panellists to “be aware and respectful of UAE laws,” warning “do not criticise Islam, UAE government, corporations or individuals,” and “do not protest.” Global climate conferences often bring large protests, and the large presence of fossil fuel lobbyists at previous conferences and the appointment of the CEO of the UAE’s state-run oil company as president of COP28 were already concerns for climate advocates. “This is deeply concerning,” Collin Rees of Oil Change International told the FT. “The language circulated here cannot be acceptable at the climate talks. There should be strong pushback on this and the UN should provide as strong a place as possible for the upcoming COP.” (Climate Nexus)
Montreal Protocol leak – A new analysis has found rapidly increasing emissions between 2010-20 of five ozone-depleting chemicals whose production for most uses had been banned under the Montreal Protocol. The studied chlorofluorocarbons, or CFCs, occur in part from leakage during the synthesis of ozone-friendly alternatives to CFCs. According to the researchers, if emissions of these five CFCs continue to rise, their impact may negate some of the benefits gained under the Montreal Protocol and also contribute to global warming as they are also potent GHGs. One takeaway message according the authors, is that the production process for some of the CFC replacement chemicals may not be entirely ozone-friendly, even if the replacement chemicals themselves are. “Given the continued rise of these chemicals in the atmosphere, perhaps it is time to think about sharpening the Montreal Protocol a bit more,” said co-author of the study Johannes Laube of the Forschungszentrum Julich. (Empa)
Lenient lending – OECD countries have agreed in principle to make their export credit agencies lend money on better terms for a series of “climate-friendly and green” projects. A group of 13 nations and the EU agreed to give those developing projects like renewable energy, electricity infrastructure, and low-emission transport longer to pay back loans and charge them less for insurance. But campaigners claim there is no clear definition of green projects and criticised the inclusion of technologies like hydrogen and carbon capture and storage. They claim that, as many hydrogen and CCS projects are driven by fossil fuel companies, that sector will be among the beneficiaries of the reform, potentially for polluting projects. (Climate Home)
EMEA
Tombent – France recorded a drop in carbon emissions in 2021-22 that was in line with national targets but not EU ones, according to provisional figures from the French carbon agency Citepa. “The results are there. Our emissions have fallen by 8.5% in the last quarter of 2022,” Energy Transition Minister Agnes Pannier-Runacher said on Monday, according to Euractiv. According to Citepa, the body responsible for reporting French carbon emissions, France’s CO2 output fell sharply for the last three months of the year. Without considering carbon embodied in imported products, which accounts for about half of France’s total emissions, the country’s domestic GHG emissions for the year were down by about 2.5% compared to 2021. France is now in line with the targets defined in its National Low-Carbon Strategy, which was loosened in 2020 compared to what the government had initially decided in 2015. Before it was reviewed, the target was set for emissions not to exceed 399 Mt of CO2 per year until 2023 – before declining further. After the review, the maximum was raised to 422 mln. This means that the 408 Mt of carbon emissions recorded in 2022 by Citepa are only meeting the target set in the national strategy because the revised targets gave industry more leeway to pollute.
Let down — Thousands of offices across the UK have become unlettable after new net zero rules left landlords unable to rent them out, reports the Daily Telegraph. New laws that came into force on April 1 ban landlords from renting offices with an energy efficiency rating of E or below. The minimum E rating that came into force on Saturday has left around 8% of all commercial stock obsolete, according to BNP Paribas. That equates to 10,000 office spaces in London alone, the firm says. Landlords are facing a choice between either doing expensive renovation work to bring buildings up to standard or cutting their losses and trying to sell-up.
Green aids – EU countries will be able to find guidance for the green transition, thanks to the new state aid templates put out by the block’s executive on Tuesday. The measures developed will be included in the national recovery and resilience plans (RRPs) and will help countries end the dependence on Russian fossil fuels as set out in REPowerEU. The state aid measures were updated in December 2020, and again in February this year to integrate dedicated REPowerEU chapters in member states’ existing RRPs. The Commission has now introduced targeted updates to the templates that are most relevant for the design of new measures under REPowerEU chapters, like hydrogen infrastructure, energy efficiency in buildings, semiconductor technologies and low-emission road vehicles.
ASIA PACIFIC
Urgent action — Some of Australia’s biggest heavy industrial companies say urgent action is needed from governments, investors and business for Australia to cut GHG emissions in line with its goal of limiting global heating to 1.5C, the Guardian reports. The companies, including Woodside Energy, BHP, BlueScope, and Rio Tinto – part of the Australian Industry Energy Transition Initiative – signed a joint statement listing several objectives necessary to keep temperatures below 1.5C. These included the construction of a large-scale, cost-competitive renewable energy system of the future, and development of integrated net zero emissions industrial regions. A report by the initiative which the companies had input on found that they could cut direct emissions in their supply chains by more than 90% by 2050 without relying heavily on carbon credits.
CCS for LNG – Inpex announced that through its subsidiary Inpex Masela it has submitted a revised Plan of Development (POD) for the Abadi LNG Project incorporating a carbon capture and storage (CCS) component to Indonesian government authorities on behalf of the joint venture composed of Inpex and Shell, Reuters reports. In February 2022, Inpexannounced its long-term strategy INPEXVision@2022 towards a net zero carbon society by 2050. As part of this initiative, the company has been in dialogue with the authorities to ensure the project’s competitiveness and sustainability from a long-term perspective for the duration of the energy transition, and to render the project clean and capable of responding to changes in the external environment. As a result, Inpex amended the revised POD to include plans to neutralise all CO2 emitted from natural gas production at the Abadi gas field through the introduction of CCS. In addition, other circumstances facilitating the project’s implementation have been restored, enabling the submission of the revised POD at this time.
AMERICAS
Conoco’s a go – A federal judge on Monday rejected a bid by environmentalists to temporarily suspend the US government’s approval of ConocoPhillips’ multibillion-dollar oil drilling project in Alaska’s Arctic. US District Judge Sharon Gleason in Anchorage had been asked by environmental groups and a Native American community in two lawsuits filed last month for an order blocking construction on the $7 bln Willow project over concerns it would exacerbate climate change and damage pristine wildlife habitat. Gleason said an injunction was inappropriate because the groups wouldn’t be irreparably harmed by the construction that ConocoPhillips has scheduled for this month, which includes building roads and a gravel mine. The judge didn’t address whether the lawsuits appeared likely to succeed at later stages in the proceedings. (Reuters)
So is Exxon – Exxon Mobil’s Low Carbon business has the potential to generate hundreds of billions of dollars in revenue and outperform the company’s traditional oil and gas as soon as a decade from now, CEO Darren Woods said. The largest US oil producer on Tuesday laid out to investors the aims of its emerging energy transition strategy in a meeting with Wall Street. Exxon is tackling what should be a multi-trillion market in 10 years or more, Woods said. The result will be an Exxon less prone to commodity price swings through predictable, long-term contracts with customers striving to reduce their own carbon footprint. (Reuters)
Climate Pledge climate wedge – Amazon has branded itself as a climate crusader, touting its commitment to renewable energy and sustainable practices. But in Oregon, it helped quietly quash a climate bill that would have regulated its data centres, The bill would have set a 100% carbon emissions reduction deadline of 2040 for high energy users. Aiming to rein in industries with outsize carbon footprints, like cryptocurrency mines and data centres, of which Amazon is planning three more in the state that would be powered by fossil fuels. Though the bill would have matched the timeline of Amazon’s own “Climate Pledge,” which promises net zero carbon emissions by 2040, the company helped kill it, said Oregon state Rep. Pam Marsh. Amazon spokesperson David Ward said in a statement that “a number of organisations, including Amazon, oppose HB-2816 because the bill does not address the build-out of electric infrastructure that is needed to bring more clean energy to the grid.” (Washington Post)
SCIENCE & TECH
Green steel – Anglo American said on Tuesday it had signed a MoU with Swedish hydrogen and steel producer H2 Green Steel to work on advancing low-carbon steelmaking processes. The miner said the agreement includes studying and trialling the use of iron ore products from its Kumba mines in South Africa and Minas-Rio mine in Brazil as feedstock for H2’s direct reduced iron (DRI) production process at its Boden plant in Sweden. DRI steel production is estimated to be significantly less carbon intensive than traditional blast furnace and basic oxygen furnace integrated processes. Anglo American has agreements with a number of steelmakers in Europe and Asia to research efficient feed materials suited to use in DRI steelmaking, including iron ore pellets and lump iron ore. H2 Green Steel, which was launched in 2021, is currently developing its DRI plant in Boden, which the company said would be powered by hydrogen plants running on renewable electricity. (Reuters)
Green cement – The Canadian government will on Wednesday sign a MoU with Germany’s Heidelberg Materials to help develop a facility to capture carbon emissions from cement production, two sources with knowledge of the plan told Reuters. Innovation Minister Francois-Philippe Champagne will announce the partnership in Edmonton, Alberta, where Heidelberg and pipeline company Enbridge are developing a plan to capture and sequester the Lehigh cement plant’s carbon emissions. One source, who did not have approval to speak publicly, said the agreement shows that the Heidelberg-Enbridge project is progressing faster than other plans to capture GHGs from heavy industry and store them underground. Oil sands companies are one of the other groups developing plans for hubs elsewhere in Alberta.
AND FINALLY…
Doom loop – The acceleration of climate change-fuelled destruction combined with the insufficiency of action to address the crisis is creating a self-fulfilling, vicious cycle of climate doom that threatens climate action, The Washington Post reports. Unlike climate deniers, a growing number of people, especially youth and young adults, believe climate change is very real — and if anything, climate scientists are downplaying the threat. The phenomenon, in addition to its toll on people’s mental and emotional health, also threatens climate action because it can lead to feelings of paralysis. Scientists and psychologists stress the importance of clear and accurate communication of climate science — that climate action is not a binary pass or fail, every hundredth of a degree of warming avoided is key — as well as the possibility of success. For those who are struggling with fatalism and doom, Sean Youra, a former self-described climate “doomer,” has some advice: “Stop engaging excessively with negative climate change content online and start engaging in your community … You can be one of those voices showing there is support for the solutions.” (Climate Nexus)
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