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TOP STORY

Frontier’s carbon removal buyers’ club commitments surpass $1 billion

Buyers’ club Frontier has seen its total commitment for engineered carbon dioxide removal (CDR) purchases climb above $1 billion by 2030 with the inclusion of four new multinationals’ pledges announced on Wednesday, a year after the launch of the venture.

VOLUNTARY

DRC government commission recommends terminating forest concessions linked to carbon credits

A ministerial commission in the Democratic Republic of Congo has recommended terminating 30 forest concessions, including a handful linked to REDD+ projects as well as undeclared carbon credit sales.

Blockchain networks announce partnership aiming to reignite crypto carbon trade

Two blockchain firms have announced a partnership that will enable a two-way bridge for tokenised Toucan Protocol carbon credits across their networks in a move that aims to eliminate fears of double counting and drive liquidity in the crypto carbon space.

Tech platform, startup to develop ocean carbon capture venture

A capital markets technology platform has teamed up with a startup involved in oceanic carbon capture to pioneer a new technology to trap CO2 emissions for sequestration, they announced on Wednesday.

Startup raises $1.8 mln in pre-seed funding for forest carbon investment platform

A Zurich-based startup has raised $1.8 million in pre-seed funding to help it build a regenerative forest investment platform for the voluntary carbon market (VCM).

ASIA PACIFIC

NZ’s Climate Change Commission gives sharper warning, ETS price recommendations to govt

New Zealand’s independent Climate Change Commission (CCC) has warned that the country is not on track to meet its climate targets with its current ETS settings, once again urging the government to drastically increase the cost containment reserve price trigger and lower auction volume limits.

ACX teams up with natural capital consortium to expand VCM business in Japan

Singapore-based AirCarbon Exchange (ACX) has signed a Memorandum of Understanding (MoU) with the Natural Capital Credit Consortium (NCCC) in Japan to collaborate on the development of Japan’s voluntary carbon market, according to a press release Wednesday.

SK Market: Monthly KAU auction clears higher, though fails to sell out again

South Korea’s monthly CO2 auction cleared on Wednesday at a price slightly above March’s sale, though still failed to sell out amid bearish sentiment that could last throughout the remainder of the 2022 compliance year.

China to require emissions data in investment feasibility reports from May

China has released a set of guidelines for government agencies and companies to evaluate risk and compile feasibility studies of their investments, recommending them to include emissions analysis and corresponding solutions from May onwards.

AMERICAS

California retires nearly 300,000 offsets from forest buffer pool due to lapsed reporting

California regulator ARB retired nearly 300,000 credits from the offset buffer pool after a forest project violated reporting requirements under the WCI-linked cap-and-trade regulation, while another project must submit additional compliance instruments after an intentional reversal took place, state data showed Wednesday.

LCFS Market: Oregon credit prices rise towards 2-year high, California financial length increases further

Oregon Clean Fuels Program (OCFP) credit values lifted to a two-year high this week as traders pointed to tighter carbon intensity (CI) targets and the influence of Washington state’s new cap-and-trade system, while California Low Carbon Fuel Standard (LCFS) prices continued climbing as data showed speculators are building additional length in the futures market.

Outdated models, limited data holding back ‘climate-smart’ agriculture in US, study warns

The US can significantly contribute to combating climate change with the Biden administration’s commitment to “climate-smart” agriculture, but several factors are currently holding the practice back, according to a report from Stanford Law School’s Law and Policy Lab and the Bezos Earth Fund.

EMEA

Euro Markets: Weak auction triggers EUA retreat but market remains well-supported, sources say

European carbon prices fell back on Wednesday after the daily allowance auction cleared at a discount to the spot market for the first time in nearly two weeks, but prices steadied later on amid steady buying, while gas and power prices were little changed amid a largely sideways outlook for energy fundamentals.

European aviation sector needs an extra €820 billion to decarbonise -study

The European aviation sector will need an extra €820 billion in funding if it is to reach its net zero emissions goal by 2050, according to an industry-commissioned report released on Wednesday.

EU-backed carbon removal accelerator launches rebrand and fresh call for startups

A carbon removal accelerator backed by the EU has launched a rebrand and a fresh call for applications having secured new funding partners as it aims to “double down” on supporting startups in the space.

SHIPPING

Big shipper orders methanol-fuelled vessels as non-profits issue LNG warning

Leading container shipping company CMA CGM ordered 16 large dual-fuel container ships this week from China State Shipbuilding Corporation that can be powered by either methanol or LNG, with non-profit groups welcoming the accelerated move towards greener fuels but also warning the industry from deploying LNG-fuelled ships as a shorter-term measure to reduce dependence on dirty fuel oil.

BIODIVERSITY (FREE TO READ)

Conservation initiative picks first batch of island-ocean ecosystems for rewilding

The Island-Ocean Connection Challenge (IOCC) has picked a first batch of eight Pacific islands for ecosystem restoration projects, with a view to expanding that number to 40 by the end of the decade.

Gabon deal brings biodiversity market opportunities for UK forestry firm

A conditional award of the right to manage 50,000 hectares of land in Gabon for carbon credit afforestation purposes has opened a door for a British forestry and timber trading company to enter the emerging market for biodiversity credits.

Dutch developer to roll out biodiversity credit platform

A Dutch nature-based solutions developer with a growing portfolio of forestry-based carbon projects in Africa has plans to set up a platform before the end of the year through which it will sell tailor-made biodiversity credits.

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CONFERENCES

City Week 2023 – April 24-26, London: City Week event brings together more than 1,000 top-level senior decision-makers from UK and overseas financial institutions for a comprehensive programme of cutting-edge presentations, panel discussions, and networking. This year’s forum will feature many well-known names from the global financial services industry, the world of politics and the international regulatory community. Day 1 has been set at the Climate Change, Green Finance and Sustainability Summit. The 13th annual edition of City Week will be held in-person at Guildhall, London, and also streamed live on our media channels. As in previous years, CW2023 is being organised in partnership with the UK Government, the City of London Corporation, TheCityUK, UK Finance and leading City institutions. Carbon Pulse readers can enjoy a 20% discount on tickets. Register here and use code CITY14CP.

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. The confirmed attendee list is approaching 200 people. Purchase your tickets now, before they sell out!

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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

Stranded shortfall – Financial markets aren’t pricing in the heightened risk of mass writedowns across energy portfolios that’s implied by the Inflation Reduction Act, according to Ian Simm, CEO of the $50 bln Impax Asset Management. He said investors are still “really struggling” to calculate the so-called stranded-asset risk that oil, gas, and coal producers face. While the fossil-fuel industry is particularly vulnerable to the decline in asset values associated with the move toward net-zero emissions, other industries are also firmly in the crosshairs. These include aviation, as well as plastics, cement, and steel. BloombergNEF estimates that 68% of global GHG emissions are currently covered by a net-zero target with a further 23% under discussion, which is adding to pressure on asset managers to ensure their portfolios aren’t left holding potential stranded assets. (Bloomberg)

AMERICAS

Bank none – With seven years to meet 2030 climate goals, none of the biggest US banks are on track to align their oil and gas targets with a scenario limiting average global temperature rise to no more than 1.5C. Each of these banks have committed to net zero emissions by 2050 while setting interim targets for specific sectors by 2030, but a new analysis from Ceres and the TPI Centre finds significant gaps in the 2030 targets necessary to achieve these global goals.

Leader of the pack, part II – The US EPA on Wednesday proposed new emissions standards for light-, medium-, and heavy-duty vehicles for Model Year 2027 and beyond, which it said would avoid nearly 10 billion tonnes of CO2 emissions through 2055. In a press release, the EPA said the proposed MY2032 light-duty vehicle standards are projected to result in a 56% reduction in projected fleet average GHG target levels compared to the existing MY2026 standards, while the proposed MY2023 medium-duty vehicle standards would result in a 44% reduction. Virtual public hearings on the heavy-duty proposal are scheduled for May 2-3, and the light- and medium-duty proposal on May 9-10.

Oil san(d)s carbon – International Petroleum Corp. (IPC) is seeking federal funding to deploy carbon capture technology at Canada’s first oil sands project sanctioned in a decade, Bloomberg Green reported Wednesday. The company’s C$850 mln Blackrod oil sands project is scheduled to start producing oil in 2026, ramping up to 30,000 bbl/day by 2028. The federal government has proposed a 50% tax credit on carbon capture capital investment in the oil sands, but royalty relief and additional tax support would help make these projects economic, Mike Nicholson, CEO at IPC said.

Reshaping reduction – Emissions Reduction Alberta (ERA) on Wednesday announced it is launching a new C$50 mln Reshaping Energy Systems funding competition made possible through the Government of Alberta’s Technology Innovation and Emissions Reduction (TIER) fund, stemming from carbon pricing revenues under the province’s large emitter system. ERA said the investment will advance technologies focused on the transport, distribution, storage, and optimisation of energy use to reduce emissions, create economic opportunities, and enable a more resilient, efficient, and reliable energy system.

EMEA

Never say never – Germany’s state-owned energy supplier Uniper will continue to have a stake in nuclear plants abroad even after the end of the technology’s use in Germany on April 15, meaning the country remains an actor in the nuclear power market beyond its long-planned phaseout. Uniper, which had come under state control after incurring massive financial losses due to the collapse of Russian gas supplies to Europe in 2022, co-owns three nuclear power plants in Sweden. The company plans to further invest in a research reactor in Sweden to investigate the feasibility for using novel Small Modular Reactor (SMR) technology, with the goal of continuing to provide industry and society with non-fossil electricity in a stable, cost efficient and climate-friendly way, the company said. (Clean Energy Wire)

Portuguese plans – Portugal’s proposed domestic voluntary carbon market does not guarantee safe and permanent removals of carbon from the atmosphere, green group ZERO said in one of the 73 responses to the government’s consultation on the policy that closed this week. For ZERO, the market should ensure the continuation of truly additional mitigation and carbon sequestration projects by only crediting the reduction and removal of emissions beyond the government’s target of net zero emissions by 2045. It added that the government should directly support foresters and farmers via improved and enhanced programmes, not a market mechanism. ZERO also proposes a more rigorous mechanism to deal with the risk of reversals than the proposed buffer.

Denied – Climate campaigners in the UK have been refused a legal challenge against the government over its decision to grant planning permission to a new coal mine in Cumbria. Friends of the Earth (FoE) and South Lakes Action on Climate Change (SLACC) said they will ask the High Court to reconsider its refusal to grant a judicial review. In December, Levelling Up Secretary Michael Gove approved what is set to be the first new coal mine in the UK in 30 years.  His department said it will be used for steel, not power generation, and supporters of the development have said it will create 500 jobs. FoE and SLACC said Gove failed to account for the significant climate impacts of the mine and whether carbon credits to offset its emissions would be accepted elsewhere. They were also concerned about the international precedent of opening a new coal mine. (PA)

ASIA PACIFIC

Quadruple solar — South Korea is planning a massive expansion of solar panels mounted on industrial rooftops and parking lots as it seeks to overcome land constraints slowing its energy transition, Bloomberg reports. The Asian nation is looking to add a total of 4 GW of solar power in industrial complexes in the city of Daegu and north Gyeongsang province, the energy minister said in a statement. That would be almost quadruple the total 1.1 GW of solar power from factory areas around the country currently, according to the statement. South Korea lacks the available land to build large-scale solar farms. The project aims to expand capacity by using idled space in massive industrial complexes. The ministry didn’t provide a timeline or cost for the planned build-out. The nation requires at least 400 GW from solar to reach net zero, according to think tank Green Energy Institute. The country had about 21 GW installed at the end of 2021, according to BloombergNEF.

Frack off — Climate advocacy groups Lock the Gate and GetUp! have accused Australian coal seam gas company Tamboran Resources for making misleading statements that amount to greenwashing, filing complaints with the country’s corporate and market watchdogs, ACCC and ASIC, respectively. Lock the Gate released a statement, arguing that the company’s claims in response to the changes to the Safeguard Mechanism were misleading. The two organisations say there is no evidence to support Tamboran’s public claims that it supports “net-zero” carbon emissions from its fracking proposals and in fact, fine print from a footnote from the company’s 2022 Sustainability Plan severely qualifies this as a “vision”, rather than a target. The complaint also points out that Tamboran has no plans to mitigate the significant downstream emissions from any fracking projects it may develop.

Emissions targets – Japan’s Mitsubishi UFJ Financial Group on Tuesday laid out emissions-cutting targets for lending to the real estate, steel, and shipping sectors, and said emissions from its oil and gas business had fallen as loans were repaid, ChannelNewsAsia reports. As Japan’s top lender and a significant funder of carbon-intensive industries, MUFG is increasingly in activists’ crosshairs and is set to face a shareholder vote on its climate efforts at an upcoming annual meeting. The need for faster climate action was reiterated by UN climate scientists last month, with the world on track to blow past a goal of limiting global warming to 1.5C above the pre-industrial average by mid-century. While MUFG and other banks have committed to getting to net zero carbon emissions across their financing by that date, the focus is increasingly on shorter-term steps they plan to get there. After previously setting targets for the oil and gas and power sectors, MUFG said it had also set targets for shipping, steel, and real estate.

VOLUNTARY

Claim clampdown – UAE-based Etihad Airways can no longer run two recent advertisements in the UK after the nation’s advertising regulator found its environmental claims were “exaggerated”. The ads, promoted on Facebook in October last year, suggest the airline is “taking a louder, bolder approach to sustainable aviation,” but failed to back up the claim, the ruling said, noting that “there were currently no initiatives or commercially viable technologies in operation within the aviation industry which would adequately substantiate an absolute green claim such as ‘sustainable aviation’”. Etihad responded noting its disappointment and stressing that sustainability “is a key priority for Ethiad”, highlighting its investments in fuel-efficient aircraft, sustainable aviation fuels research, as well as carbon offsetting and reforestation through mangroves. (Bloomberg)

AND FINALLY…

A Lega their own – A draft law proposed by Italy’s far-right Lega party introducing a new type of criminal offence for those who vandalise cultural assets is under review in the national Senate. According to EurActiv, the proposed law aims to crack down on environmental activists who have vandalised artworks or cultural buildings in the last few years to draw attention to the severity of the climate crisis. Lega Senator Claudio Borghi presented the draft law in Nov. 2022, and its review in the Senate kicked off on Apr. 4. The proposal foresees fines of up to €1,500 and imprisonment of up to one year for those who damage cultural assets or display cabinets and other structures dedicated to the exhibition, protection, and preservation of cultural artefacts. The second article of the proposed law introduces the possibility of arresting those caught in the act of vandalising cultural assets. In Jan. 2023, climate activists of the ‘Last Generation‘ group daubed washable paint on the base of Maurizio Cattelan’s artwork ‘Love’ in front of the Stock Exchange building in Milan, calling on Italian banks to stop financing fossil fuels. Later that month, activists from the same movement were stopped by the police after throwing washable paint on the Palazzo Madama building, seat of the Italian Senate in Rome. A similar incident also occurred in Florence to Palazzo Pegaso, the seat of Tuscany’s regional council. Environmental activists argue that these actions are necessary to draw the attention of policymakers to the climate issue.

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