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TOP STORY

Removals buyers’ club announces forward-purchase of 200,000 tonnes, targets 1 Mt by 2025

A carbon removals venture has announced the advance purchase of nearly 200,000 tonnes from a portfolio of direct air capture, biochar, and biomass projects, aiming to hit 1 Mt in forward deals by 2025 at “an average target price” of $200 per tonne, it said in a release Wednesday.

EMEA

Parliamentary committees vote to beef up EU methane regulation

The European Parliament’s environment (ENVI) and industry (ITRE) committees on Wednesday voted to strengthen a law to curb methane emissions from the energy sector, seeking to include imports while demanding a future proposal to reduce output of the potent warming gas in other sectors.

Euro Markets: EUAs post 10th loss in 11 days despite late rally, as market bounces near key support

EUAs extended their losses for a sixth consecutive session and the 10th time in 11 days, as the market continued to liquidate long positions amid declining natural gas prices and worsening sentiment, with prices catching late support as the market neared a key technical level.

EU carbon market volume falls due to energy crisis after record year -report

EU ETS trading volume dropped year-on-year by 26% in 2022 compared to the 2021 record of nearly 10 billion allowances, a report revealed on Wednesday.

Renewables overtook fossil fuels for first time in EU last winter -report

Renewable energy generated more of the EU’s electricity than fossil fuels over winter for the first time, with energy trends subduing fears that coal generation was ramping up in the face of a move away from Russian gas, according to analysis published Thursday.

Planned LNG terminals could raise EU emissions by one-third -NGO

LNG import capacity planned by EU governments would increase the bloc’s greenhouse gas emissions by 950 MtCO2e per year, equivalent to 32% of the total emissions in 2019, according to estimates in an NGO report published Thursday.

No shortage of European CO2 storage options as oil sector peddles investments

Europe’s oil and gas sector is already quickly advancing its project pipeline for underground CO2 storage, a panel heard Wednesday, with experts touting no shortage of options as the EU hones its target of reaching 50 million tonnes of annual CO2 injection capacity by 2030.

Norway CCS project shelved as costs set to exceed budget

A pioneering waste-to-energy carbon capture plant in Norway has been suspended after running over budget.

Aviation industry sees EU on track to exceed 2030 SAF targets

Aviation industry representatives believe the provisional deal reached overnight between EU legislators on the sector uptake of sustainable aviation fuels (SAF) is achievable, with the legislation key to kickstarting the decarbonisation of the sector among other measures including the EU ETS.

RWE posts 11% drop in Q1 lignite generation as gas output rebounds

Utility RWE posted a significant drop in generation from its German lignite power plants in the first quarter of 2023, while gas burn from its assets covered by the EU’s carbon market increased by one-third year-on-year, it reported in preliminary output data published Wednesday.

Iberdrola hydro output doubles in Q1 as fossil generation slumps

Spanish utility Iberdrola posted a strong rebound in hydro output during the first quarter of the year in a signal that reservoir stocks in Iberia have recovered despite ongoing drought-like conditions, also reducing the firm’s ETS-covered fossil power generation as a result.

VOLUNTARY

LEAF Coalition selects two South American proposals for jurisdictional REDD credits

The public-private LEAF Coalition on Wednesday announced it has approved two jurisdictions in South America to supply REDD credits issued from a global offset standard, as it unveiled the next call for governments to submit proposals.

Standards body SocialCarbon to expand beyond nature-based solutions

Standards body SocialCarbon is broadening its remit away from nature-based solutions (NBS) and will cut down on its list of eligible methodologies derived under the UN’s Clean Development Mechanism (CDM), it announced Wednesday following a public consultation.

First commercial-scale DAC plant poised for groundbreaking

A US commercial-scale direct air capture (DAC) plant will hold its groundbreaking ceremony this week, a panel heard Wednesday, with the facility slated to capture up to one million tonnes of CO2 a year once fully operational in coming years.

Digital monitoring of biogas cookstoves could reap quick payback -report

Digitally-linked biogas clean cookstove projects could pay for themselves in five years despite the high set up cost, according to an industry-commissioned paper that outlines how technological advances could build buyer confidence in a carbon credit sector shaken by over-crediting concerns.

KPMG, Context Labs team up to launch tech-enhanced MRV service to help companies decarbonise

Consultancy KPMG and ESG information provider Context Labs have announced a partnership aimed at assisting companies measure and reduce their environmental footprints through the use of distributed ledger technology, advanced climate data, and analytics powered by machine learning and artificial intelligence (AI).

AMERICAS

Colombian government pursuing offset regulations to evaluate additionality, safeguards

The Colombian environment ministry is developing new regulations covering additionality requirements, standards bodies, and community involvement for offsets under the country’s carbon tax, but the first draft of the rules has not been written after nearly a year of preliminary meetings, experts told Carbon Pulse.

California offset issuances inch higher, but still lag well behind 2022 totals

California Carbon Offset (CCO) issuances climbed for the second period in a row, though year-to-date levels continue to trail the same period in 2022, according to state data published Wednesday.

LCFS Market: California prices leave behind recent highs as traders ready for Q4 data release

California Low Carbon Fuel Standard (LCFS) credit values dropped from a six-month peak this week as a recent financial-led rally petered out and market participants prepared for another steep quarterly credit generation figure.

ASIA PACIFIC

NZ ETS must slash dependence on forestry credits, Climate Change Commission says

New Zealand must find a way for its emissions trading scheme to rely less on forestry credits if the market is to drive sufficient carbon reductions elsewhere in the economy to meet national climate goals, the independent Climate Change Commission said Wednesday.

South Korea cuts KAU auctioning volume for 2022 due to sluggish demand

South Korea has cancelled plans to auction off a combined 3.7 million CO2 permits before the June 30 annual compliance deadline due to low allowance prices and poor market liquidity.

INTERNATIONAL

Freeing trees from woody vines a “climate no-brainer” that could absorb 800 Mt of CO2 -study

Liberating trees from woody vines, or lianas, is a cost-effective “climate no-brainer” that enhances the economic value of managed forests while helping to fight climate change, according to new research, which estimated that the practice could help remove 800 million tonnes of CO2 from the atmosphere over 30 years.

BIODIVERSITY (FREE TO READ)

INTERVIEW: No tiger to die – UNDP, Asian nations to launch bonds for species protection

The United Nations Development Programme (UNDP) is in discussions with four Asian countries over issuance of bonds that could generate as much as $200 million to help support tiger ecosystem protection, with successful activities then to be monetised by the sale of “high integrity biodiversity credits”, a member of the organisation working on the project confirmed to Carbon Pulse.

TNFD co-chair “confident” final nature reporting recommendations will remain similar to draft

The co-chair of the Taskforce on Nature-related Financial Disclosures (TNFD) has said that he does not expect the final recommendations on nature-related financial disclosures to substantially change from the draft published at the end of March, with firms already starting to implement the guidelines.

Watchdog says EU is coming up short on pesticides

Pesticide use is still widespread in Europe and on the rise in some countries, and EU lawmakers must do much more if the bloc is to meet its targets on hazardous pesticides that damage ecosystems and public health, the European Environment Agency (EEA) said Wednesday.

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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. The confirmed attendee list is approaching 250 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

Clean cars – Almost one in five cars sold worldwide this year will be an electric vehicle, the International Energy Agency has forecast, after sales already passed the 10 mln mark for the first time globally. The remarkable surge in demand for battery-powered models means electric vehicles will account for 18% of global car sales compared with just 4% of global car sales in 2020, according to the agency’s annual outlook. This year sales are projected to rise to 14 mln vehicles, including both battery-only models and hybrids that plug in to charge. China accounted for almost two-thirds of all electric car sales in 2022, mainly because of a subsidy programme. Europe and the US, which both also offer incentives, are the second and third-largest markets for the cars. Decarbonising car sales is one of the pillars of reducing greenhouse gas emissions. The EU aims to phase out almost all combustion engine-driven car sales by 2035, and the US wants half of sales to be electric by the end of this decade. (FT)

Bank backs off – The US Export-Import Bank is backing off a plan to lend $99.7 mln for an oil refinery expansion in Indonesia, after warnings the support would violate a pledge made by President Joe Biden to stop steering public dollars to foreign fossil fuel projects. Directors of the credit agency had been set to vote Thursday on the plan, which would help boost gasoline production by 101,000 barrels per day at the PT Kilang Pertamina Balikpapan Petroleum Refinery. But the proposed financing was yanked from the ex-im bank board’s meeting agenda on Wednesday after an outcry from environmental activists, who say approval would be a betrayal of Biden’s commitments to combat climate change. (Bloomberg)

EMEA

Going Dutch – The Dutch government on Wednesday said it would spend €28 bln in the coming years to guarantee it would meet its climate goals for 2030. The government announced a range of measures which it said would make sure CO2 emissions in the Netherlands will be 55% lower than in 1990 by 2030 – ranging from building large offshore solar power fields to lifting taxes for polluting industries. Emissions were around 30% lower in the euro zone’s fifth largest economy than in 1990 last year. “The Netherlands has for years missed its climate goals. Now it’s time for a great leap forward,” climate minister Rob Jetten said. With a projected reduction of 22 Mt of CO2 emissions, the new measures aim for a 60% reduction by 2030, in order to make sure the 55% target will actually be met, Jetten said. (Reuters)

Neighbourhood watch – Community-based forest monitoring has proven crucial in Cameroon’s Yoko district, where two logging companies had their permits suspended due to alerts from community monitors, according to Rainforest Foundation UK. The organisation’s local partner L’association Ecosystemes et Developpement (EcoDev) reported that Societe Forestiere BOURAKA (SFB) and Nomo Felix Devalois (NOFELD) had their permits suspended due to fraudulent documents and social responsibility violations. Local community members sent alerts through ForestLink, Rainforest Foundation UK’s real-time monitoring system, which led to investigations by Cameroon’s Standardised Independent External Monitoring System (SNOIE) and eventually the suspension of the companies’ permits. EcoDev has successfully trained civil society actors in the country’s forested Mbam-et-Kim region, resulting in the highest number of ForestLink alerts in 2021-22. The suspension of logging permits demonstrates the power of community-based forest protection and the effectiveness of tools like ForestLink in detecting and enforcing laws against illegal deforestation.

Buyback time – British power generator Drax Group announced it’s launching a plan to buy back up to £150 mln of shares in a boon to investors after a profitable year, Bloomberg reports. The decision to trigger a windfall for shareholders comes at the same time as Drax said it will pause investment in its carbon-capture program, pending further details on subsidy options from the government, according to a trading update Wednesday. The plan for buybacks comes amid wider scrutiny of the power sector following record profits triggered by Europe’s energy crisis. Households are seeing mounting debt after UK energy bills more than doubled, while power companies have been able to sell energy at all-time highs. Drax was rejected from the government’s subsidy-giving carbon capture programme last month after broad expectations it would be given the status. Drax has also been told by its own advisors to stop calling biomass “carbon neutral”.

SAF bet – Low-cost airline Wizz Air has announced a £5 mln investment in UK-based biofuel company Firefly. This is Wizz Air’s first equity investment in sustainable aviation fuel (SAF) research and development. The partnership supply SAF to Wizz Air’s UK operations from 2028, equating to up to 525,000 tonnes over 15 years. The agreement has the potential to save 1.5 Mt of CO2e, the companies said. Firefly specialises in a process that converts sewage sludge, a low-value waste product available in large quantities, into SAF. More than 57 million tonnes of sewage sludge are produced in the UK each year, with the potential to produce 250,000 tonnes of SAF. (Aviation24)

Vienna waits for… climate action – After a report revealed that Austria will fall short of reaching its climate targets, the governing Greens blamed their conservative coalition partner, as EurActiv reports, stating that they are often left alone in parliament when it comes to concrete climate decisions. The report from the Austrian Federal Environment Agency outlines GHGs trajectory scenarios out to 2030, and was sent to the European Commission in March which obliges member states to carry it out every two years. The Austrian government targets carbon neutrality by 2040, but, according to the report, the country will only be able to reduce its carbon emissions by 30% by 2050 compared to 1990 levels, and is also expected to miss the less ambitious EU targets which aim for carbon neutrality by 2050.

Ours now – Russia has taken control of utilities owned by Finland’s Fortum and Germany’s Uniper, the first such move from the Kremlin in retaliation for asset freezes by European countries over its invasion of Ukraine. Russian President Vladimir Putin signed a decree late Tuesday that allows the government to introduce “temporary” state control over the assets of companies or individuals from “unfriendly” states, which include the US and its allies, in response to similar moves, or the threat of them, by those countries. Russia threatened to seize the assets of foreign companies last year after Germany took control of a local arm of natural gas producer Gazprom, which it later nationalised. Chancellor Olaf Scholz’s government has also seized refining assets part-owned by the sanctioned state oil company Rosneft. The only assets listed in an addendum to Putin’s decree are Uniper’s 83.7% stake in Unipro and Fortum’s 98.2% stake in local Fortum. Both companies had sought to sell their stakes after Putin ordered troops into Ukraine last year, but were blocked by the Kremlin, which has banned foreign investors from selling Russian assets without special permission and required a large discount. “The main goal of the decree is to create a compensation fund for possible use in tit-for-tat measures in response to the expropriation of Russian assets abroad,” Kremlin spokesman Dmitry Peskov said, according to Tass. The takeover affects power-generation assets “which have primary importance to the stable functioning” of the Russian power sector, he said. (Bloomberg)

AMERICAS

Sow long – A first-time shareholder resolution filed with US-headquartered investment bank Goldman Sachs by shareholder representative As You Sow, asking the company to provide an actionable climate transition plan to achieve its 2030 net zero greenhouse gas emission reduction goals, was supported by only 30% of shareholders at Wednesday’s annual general meeting. The shareholder advocacy non-profit said in a press release that the vote follows a 28.5% vote at Bank of America on Tuesday, while results for a similar transition plan proposal that was voted on at Wells Fargo were still pending.

Keys to decarbonisation – Green group NRDC released new analysis on Wednesday that found the US can affordably and feasibly achieve a net zero economy by 2050 by deploying five key decarbonisation strategies: clean power, energy efficiency, electrification, natural carbon solutions, and decarbonised fuels.  In NRDC’s core decarbonisation pathway, the country sees an average of about $9 bln a year in net energy system cost savings over the next three decades compared to a business-as-usual case. By 2050, those benefits increase to $35 bln a year, due to avoided expenses on fossil fuel infrastructure and the fuels themselves.

Ditching a Tent – An Australian coal company is withdrawing its plan for a mine in the Crowsnest Pass region of the eastern slopes of Alberta’s Rocky Mountains. In a letter, Montem Resources asked the Alberta Energy Regulator to end the environmental impact assessment for its Tent Mountain proposal. The letter says the company will not be resuming mining for metallurgical coal at the site, which last operated in 1983. CEO Peter Doyle said the company will instead be focusing efforts on building a renewable hydro project at the site. In February, Montem announced a deal with TransAlta in which the utility would acquire a 50% interest in the plan to combine wind and hydro to generate renewable electricity. Doyle said a final decision on whether to proceed with the renewable energy plan will come in 2025. (Canadian Press)

Offset to capture – Emissions Reductions Alberta (ERA), the investment arm of Alberta’s offset programme, in partnership with Accelerating CCUS Technologies (ACT), an international funding initiative to boost innovation in CCUS technology announced $3 mln in funding on Wednesday for three Alberta CCUS projects. ERA sourced funds from Alberta’s Technology Innovation and Emissions Reduction (TIER) programme, along with contributions from ACT member nations, Norway and the US. All three projects involve development, scale-up, field testing, piloting, demonstration, or deployment of CCUS technology within Alberta or Alberta-based companies working on technology in a partner’s region, the release noted. The three projects were: 1) Carbon Management Canada – received $1.1 mln ERA funds towards a $6.1 mln project developing a low-cost, high resolution monitoring technology for CO2 storage facilities; 2) Carbon Upcycling Technologies – received $600,000 towards a $1.9 mln project binding CO2 into a variety of feedstocks to create cementitious materials used in concrete; and 3) Repsol Canada – received $1.3 mln for a $3.3 mln project investigating the feasibility for permanent storage of CO2 in depleted gas reservoirs.

ASIA PACIFIC

Hydrogen trade — Woodside Energy Group has signed a non-binding HoA with Keppel Data Centres to evaluate the potential supply of liquid hydrogen to Singapore from Woodside’s proposed production facilities, Offshore Energy reports. The liquid hydrogen would be supplied from Woodside’s portfolio of planned production facilities, including its proposed H2Perth facility in Perth, Western Australia. The agreement follows the conclusions of feasibility studies the parties began in late 2021. The HOA provides a pathway for the parties to jointly develop further commercial principles for key hydrogen supply chain agreements. It references the potential purchase of approximately 1,000 tonnes per day of liquid hydrogen by Keppel Data Centres as early as 2030 when the parties anticipate the associated production technologies and shipping systems will reach maturity. The parties expect that a hydrogen supply chain will benefit Keppel Data Centres’ data centre facilities, including its planned Datapark+, which is envisioned to be an energy-efficient data centre park development in Singapore. Using hydrogen instead of more carbon-intensive energy sources has the potential to reduce emissions generated by data centres, Keppel said.

Way forward – The recent global energy crisis has shown that a secure energy transition is more pressing than ever, according to an op-ed in the Phnom Penh Post. ASEAN and China, two of the world’s largest players in the energy sector, have a critical role to play, the op-ed stated. The two regions possess a unique opportunity to leverage their strengths and collaborate to achieve a common goal: a low-carbon future. The importance of the energy transition is driven by the fact that both regions need to reduce their dependence on fossil fuels. Fossil fuel constituted 82.8% of the region’s total primary energy supply (TPES) and it is projected that the region would become a net natural gas and coal importer by 2025 and 2039, respectively. With strong economic and population growth, energy demand will inevitably increase, making it imperative to find alternative energy sources. To meet this challenge, the region has set a goal to have renewable energy (RE) account for 23% of its TPES and 35% of its installed power capacity by 2025. Reaching these targets will require a significant investment, some $213 bln from 2021 to 2030.

Prepping for CBAM – Hyundai Steel is aiming to cut its carbon emissions by 12% by 2030, with the ultimate goal of achieving net-zero by 2050, reports Korea JoongAng Daily. These were just a few of the visions the steelmaker’s CEO Ahn Dong-il announced Wednesday, emphasising that carbon neutrality is “not a choice but a necessity” as it faces global environmental regulations from economies such as the EU and the US. Ahn said the company’s ultimate goal is to continue producing high-quality automotive steel while lowering carbon output.

VOLUNTARY

Book and claim – Danish transportation and logistics company DSV has invested in large quantities of sustainable fuels and has launched a “book and claim” solution to help customers reduce their supply chain carbon footprint across various modes of transport. By providing access to certified sustainable fuels, DSV said it aims to support the shift from fossil fuels to greener alternatives in the transport sector. The company’s book and claim solution calculates the CO2 emissions for specific shipments and allocates the required volume of sustainable fuels, transferring the ownership of CO2 reductions to the customers. This process is verified by a third-party auditor, and customers receive a declaration to validate their emission reductions. As well, according to S&P’s Journal of Commerce, DSV is buying carbon credits from transport carriers using biofuel in their fleets as part of its new sustainable product, helping to further reduce CO2 emissions from customer shipments around the world.

Carbon crypto access – Blockchain technology firm Blockmate Ventures launched the carbon offset crypto token KlimaDAO for purchase on the firm’s blockchain.eu and blockchain.com.au website platforms, the company announced Wednesday. Blockmate users will have the ability to offset their emissions by buying carbon credits directly from the platform. The firm expects to generate revenue from transaction fees and the growth in demand for carbon credits as more people seek to offset their carbon footprint, the press release stated.

SCIENCE & TECH

Olivine to Earthcrete – Environment technology firm CarbonMeta Technologies and BC-based mining company North Bay Resources signed an MOU to create a joint venture, limited liability, subsidiary CarbonMeta Green Resources Canada that aims to produce ‘Earthcrete’, a carbon-negative cementless concrete using olivine – a magnesium iron silicate that is also known as peridot and chrysolite, the companies announced Wednesday. The firms plan to purse carbon removal credits as the production of Earthcrete from olivine is estimated to absorb up to 13% CO2 by weight. Equity ownership of the new subsidiary will be split 51% to 49% between CarbonMeta Technologies and North Bay Resources respectively. North Bay Resources’ Tulameen Platinum Project estimates holding 135 Mt olivine on 860 ha, 100 Mt of which will be contributed to the joint venture. CarbonMeta Technologies will provide research and development expertise to commercialise carbon capture technologies required in the production of Earthcrete, as well as sales and marketing know-how to line up buyers and North American distributors for Earthcrete products. The MOU included an unspecified purchase price for olivine, which will be updated quarterly, the release noted.

AND FINALLY…

Big geothermal in the Big Apple – An Australian-based developer, Lendlease is building the largest US net zero residential housing complex run on geothermal heating and cooling in Brooklyn, New York, CNBC reported Wednesday. When finished in 2025, the project at 1 Java Street will have 834 rental units across five buildings that will include a 37-storey and 20-storey tower, and use geothermal energy, reducing emissions by 53%, but will cost 6% more to build, the report stated. The company expects to more than make up the extra costs over a 20-year lifespan, Scott Walsh, director of development for Lendlease explained. Drilling 320 boreholes 500 feet underground reaches water below the frost line that remains at a constant temperature of 55F (12.8C). Through a loop system of pipes, the water is brought up through heat exchanges that can heat or cool the building throughout the year. The apartment complex will be in compliance with New York’s new emission standards for large buildings going into effect next year in line with the state’s 2030 target of 40% of GHG reductions and 80% by 2050. Retrofitting older buildings into align with upcoming standards is expected to be incredibly costly.

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