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TOP STORY

ANALYSIS: Policy lag seen limiting progress on novel CDR before 2030

Slow progress from policymakers on clarifying the role of novel carbon dioxide removal (CDR) technologies will limit significant progress in the near-term, particularly in the EU where certainty on how such solutions can help meet the bloc’s climate targets is not expected before the end of the decade.

VOLUNTARY

Abatable acquires REDD specialist Ecosphere+ via $13.5 million raise

Carbon credit procurement platform Abatable has acquired rival Ecosphere+ using cash from a $13.5 million fundraise as part of an effort to reach a broader range of corporate clients.

Microsoft agrees deal to source ERW removal credits from UK startup

Tech giant Microsoft has signed an agreement to buy some 5,000 tonnes of carbon removal credits from enhanced rock weathering (ERW) project developer UNDO.

Blockchain carbon firm acquires Austrian climate neutrality company

A blockchain carbon offsetting platform on Thursday announced it will begin offering subscription-based credits to customers after acquiring a Vienna-based clean tech company.

US startup launches ‘operating system’ to help manage, scale carbon credit businesses

A US-based startup has launched an ‘operating system’ aimed at streamlining the carbon credit management process and enabling suppliers to scale their operations effectively.

ASIA PACIFIC

Indonesia, Philippines in early-stage talks to create novel bilateral reforestation project for carbon market

Indonesia and the Philippines are working on a bilateral partnership on a reforestation project that might be joined by other ASEAN nations later in a novel push to generate carbon credits, according to local media, however the discussions are still in their very early stages.

NZ ETS participants boost NZU holdings ahead of May surrender, new data shows

The stockpile of NZUs in New Zealand’s ETS is starting to shrink, but participant’s surrender obligations have created a temporary bulge, according to newly released data, as the NZU spot price rallied following the release of the Climate Change Commission’s recommendations.

Australia losing edge in global hydrogen race despite growing project pipeline

Australia accounts for around 40% of the value of investment in the global clean hydrogen pipeline, but the large number of projects yet to reach final sanction means that its status as a global leader is under threat with other countries accelerating their policy support for the nascent sector, Energy Minister Chris Bowen warned on Thursday.

EMEA

EU should consider importing removals to meet 2040 targets, says official

There should soon be a discussion on whether the EU can meet 2040 emissions targets on its own or need to import mitigation outcomes such as removals, a European Commission official told an event Thursday, though stressing that this was not necessarily a view held across the EU executive.

EU ETS2 allowance prices could exceed intended €45/tonne “ceiling”, experts warn

Allowances in the new EU carbon market for transport and building heating emissions could exceed the intended price ceiling, experts have warned, arguing that European lawmakers may have created false expectations.

Euro Markets: EUAs fall for second day as traders see signs of compliance demand ending

European carbon declined on Thursday after a burst of selling took more than €2 off prices in the first two hours, while trading activity otherwise was low-key amid the tail-end of the holiday season, as energy markets drifted again amid healthy supply.

Major ETS-linked reforms poised to get final approval stamp by EU lawmakers

The European Parliament will next week meet in Strasbourg to vote on several ETS-related reform bills, aiming to sign off on provisional deals to put shipping, buildings and road transport under carbon pricing, impose a carbon border adjustment mechanism (CBAM), and launch a Social Climate Fund.

More European companies are investing in climate action, EIB finds

European companies are stepping up their investment in climate action in the wake of the coronavirus pandemic and are expected to continue that trends, according to a European Investment Bank (EIB) report published on Thursday.

Trading firm STX Group gets borrowing boost from €150 million credit facility

Environmental commodities trading firm STX group has closed a syndicated borrowing base credit facility worth up to €150 million to help expand its operations.

AMERICAS

WCI Markets: California carbon heads higher, but WCAs lead as $70 approaches

California Carbon Allowance (CCA) prices climbed this week as traders pointed to a continued supportive macro environment and options activity, as well as the influence of surging Washington Carbon Allowance (WCA) values that stepped past the new scheme’s second reserve price trigger.

BIODIVERSITY (FREE TO READ)

Conservation group backs OECMs as flexible way for nations to meet 2030 biodiversity targets

Meeting the 30×30 target of the Global Biodiversity Framework (GBF) will be a major challenge for many countries, though OECMs – other effective area-based conservation measures – are increasingly seen as a useful tool, with IUCN this week showcasing how they could help Vietnam achieve its biodiversity commitments.

Businesses should minimise their biodiversity impacts, while looking to help make progress elsewhere -experts

Businesses seeking to minimise their impacts on biodiversity can simultaneously look to enhance ecosystems that function beyond their value chains, a webinar heard Thursday, pointing out an emerging agreement on what a “nature positive” business strategy really means.

NGO calls on IMF to re-position, make major push on biodiversity

A US-headquartered NGO has urged the International Monetary Fund (IMF) to instantly make significant funds available for biodiversity purposes and undertake institutional reforms to put nature loss at the heart of global financial reform.

Mediterranean seagrass gets boost from French carbon project

The French government has become the first in Europe to approve an accounting methodology for a carbon project that will protect the crucial Posidonia seagrass meadows along a stretch of coast overseen by the Calanques National Park.

Large Scottish estates sold for rewilding in landmark nature-based debt deal

UK-based Oxygen Conservation has acquired two large Scottish estates totalling 23,000 acres to develop a major rewilding project, using a £20.6 million bank loan in what’s being called Britain’s largest-ever nature-based commercial debt deal.

Biodiversity Pulse Weekly: Thursday April 13, 2023

A weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).

ICYM

DRC government commission recommends terminating forest concessions linked to carbon credits

(Updates Wednesday’s article with details about Wildlife Works’ Mai Ndombe REDD project not being subject to any recommendations to terminate)

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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

Do it for development – The World Bank’s steering committee and US Treasury Secretary Janet Yellen on Wednesday called for further reforms this year to expand the bank’s ability to respond to climate change, pandemics and other crises that are reversing development gains. Yellen hosted talks with global finance officials to discuss an initial spate of balance sheet changes that will allow the World Bank to lend an additional $50 bln over 10 years while maintaining its top-tier AAA credit rating, and how to deepen those efforts with it and other multilateral development banks. Yellen said the changes already approved had sharpened the mission of the World Bank, but more “bold action” was needed to ensure it could work to end extreme poverty, boost shared prosperity and better meet 21st century challenges like climate change, fragility, and pandemics. (Climate Home)

Austrian outlay – The Green Climate Fund (GCF) has welcomed Austria’s announcement that it will contribute €160 mln to the climate finance fund’s second replenishment for post-2024, a 23% increase on the nation’s first pledge and a frontrunner to the donation round. GCF boss Henry Gonzalez said “it is critical that other nations follow Austria’s lead in recapitalising the Fund, allowing GCF to continue to deliver for those who need it the most.” The second replenishment culminates in a high-level pledging conference on Oct. 5 in Bonn, Germany.

EMEA

Dutch energy – The European Commission has approved a €1.4 bln Dutch direct grant scheme to support energy-intensive small and medium-sized enterprises in the Netherlands facing increased energy costs in the context of Russia’s war against Ukraine under the bloc’s temporarily streamlined state aid policy for measures key to accelerate the green transition and reduce fuel dependencies. The scheme will be open to SMEs across sectors whose purchases of natural gas and electricity amount to at least 7% of their annual turnover for year 2022, receiving up to 50% of costs up to a cap of €160,000. Executive vice-president Margrethe Vestager, in charge of competition policy, said this “will enable the Netherlands to address the liquidity shortages that energy-intensive companies are currently facing, especially the smaller ones, due to the current geopolitical crisis.” Separately, the Dutch economy and climate ministry today unveiled a framework agreement with oil major Shell. It said the government would support the company’s efforts to reduce its CO2 and nitrogen emissions in the country by considering building infrastructure and accelerating permitting procedures to help Shell reach its goal of cutting 3.9 mln tonnes of CO2 emissions by 2030, which amounts to a fifth of the cuts the Netherlands is targeting for its industry as a whole. Shell operates Europe’s largest oil refinery and a large chemical plant in the Rotterdam port area, both covered under the EU ETS.

ASIA PACIFIC

CCS ambitions – Malaysia’s Petronas is working with state governments, including Sabah and Sarawak, to find opportunities to expand its carbon capture solutions (CCS) projects to further reduce emissions, Borneo Post reports. This is in line with the company’s near-term target to cap its operational emissions to 49.5 million tonnes of CO2 equivalent by 2024 in Malaysia and to achieve 25% absolute emissions reduction group-wide by 2023. Petronas is working with the states to find opportunities on high quality nature-base climate solutions, to generate high quality carbon credits, according to the company’s head of strategy, policy and regulation, Wan Sayuti Wan Hussin.

Not let go of coal – China aims to increase the proportion of non-fossil energy in installed power generation capacity to 51.9%, up from last year’s 47.3%, though coal production capacity will also “be maintained at a reasonable level,” said the National Energy Administration (NEA) on Wednesday, according to China Daily. This year’s total energy output will be equivalent to about 4.75 bln metric tonnes of coal, with increases in both crude oil and natural gas production, the energy regulator said. While the country aims to form a diversified clean energy supply, the government will continue strengthening the role of coal as a “ballast stone” in China’s energy mix, according to NEA.

AMERICAS

Growing forest club – Conservation non-profit American Forest Foundation (AFF) announced on Wednesday the expansion of its Family Forest Carbon Program (FFCP), operational across nine US states in partnership with international conservation group The Nature Conservancy (TNC), t0 landowners in select counties in Michigan, Minnesota, and Wisconsin. Enrollment in the FFCP is available to Midwest landowners with as little as 30 acres (12 ha) of land for 20 years, and provides annual payments and technical assistance to implement forest management practices to enhance carbon capture and storage, improve forest health, and provide other important ecosystem benefits. The programme plans to expand into several more counties throughout the three states this summer.

VOLUNTARY

Splitting the carbon – DAC company Climeworks has argued that carbon emission reductions and removals should be clearly distinguished from each other in climate pathways, target setting, as well as in industry standards. The Swiss firm called for a clear distinction between removals and reductions in marketplaces and certificates generated from the two activities. “Whilst they are important and meaningful for the achievement of a net-zero world, credits generated from emissions reductions and avoided emissions should cease to exist, as soon as we have achieved net-zero state,” the firm wrote in a statement. Climeworks also suggested that by clearly distinguishing between the two, this clears up the current claim that investing into removals today could distract from emission reductions.

AND FINALLY…

Go for soda – MIT researchers have discovered that introducing new materials into existing concrete manufacturing processes could significantly reduce its carbon footprint, without altering its mechanical properties. The production of concrete accounts for approximately 8% of global CO2 emissions, and after water is the world’s most consumed material. During its manufacturing, however, large quantities of CO2 are released, both as a chemical by-product of cement production and in the energy required to fuel these reactions. While the energy could eventually be substituted with electricity generated from renewable sources, the other half of the emissions is inherent in the material itself. But this new research, published in PNAS Nexus, found that adding sodium bicarbonate (baking soda) to the manufacturing process could mineralise up to 15% of the total amount of CO2 associated with cement production during the early stages of concrete mixing and pouring. The resulting concrete sets much more quickly, forming a composite phase without impacting its mechanical performance, and potentially allowing for increased productivity in the construction industry. However, the long-term performance of the new material still needs testing. (Energy Post)

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