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TOP STORY
Revamped US power plant carbon regulations offer trading, CCS as compliance options
The US EPA on Thursday published a draft rulemaking to slash CO2 output from fossil-fuel fired electricity generators through means such as emissions trading and carbon capture and storage (CCS), with President Joe Biden’s administration feeling confident the proposal will fall within the Supreme Court’s restricted regulatory parameters.
EMEA
EU lawmakers vote to ban firms from relying on offsetting when making green claims
The European Parliament voted on Thursday to approve a text that would prohibit EU companies from relying solely on carbon credits when making sustainability claims, a drive largely welcomed by voluntary carbon market participants as helping to boost transparency.
EU to “always overshoot” renewables goals, if permitting issues are solved -Timmermans
The EU “will always overshoot” renewables’ targets quite substantially as long as the bloc ensures permitting bottlenecks are overcome, the European commissioner in charge of climate Frans Timmermans told the press on Thursday.
EU efforts to decarbonise trucks at risk from limited access to critical raw materials, unstable supply chains
Limited access to critical raw materials and unstable supply chains threatens the decarbonisation of the truck and heavy vehicle sector in the EU, industry and policy makers agreed during a roundtable discussion on sustainable transport in Brussels on Thursday.
CEZ joins other EU utilities in posting Q1 drop in thermal power output
Czech state-controlled power generator CEZ became the latest EU utility to report lower Q1 ETS-covered output on Thursday, lowering demand for carbon allowances, as a slew of firms reported earnings.
Euro Markets: EUAs decline for first time in a week as rallies are beaten back amid aggressive selling
EUAs endured choppy morning trading on Thursday before declining for the first time in a week as rallies to a key psychological level met with aggressive selling, and energy prices continued to weaken after coal prices dropped to new 15-month low.
ADNOC launches decarbonisation challenge to boost innovative clean energy solutions
UAE state-owned oil firm ADNOC on Thursday announced a global decarbonisation contest aimed at unearthing revolutionary advancements that can redefine the world’s energy sector.
VOLUNTARY
Experts outline fixes to integrity challenges plaguing cookstove carbon credit projects
Solutions exist to stop cookstove projects from cooking up low-quality carbon credits, according to a blog published by a cross-sector group of experts on Thursday, that offered advice on fixes to the carbon integrity challenges plaguing the project type.
Xpansiv CBL planning to launch separate GEO contract for next CORSIA phase
ESG marketplace Xpansiv has no plans on amending the specifications of its existing CORSIA-aligned offset contract in light of UN body ICAO’s vintage decision for the next phase of the global aviation carbon credit programme, and instead intends on launching a new contract with the required changes, the company told Carbon Pulse.
CIX to release price assessments for upcoming launch of nature-based standardised contracts
Singapore-based Climate Impact X (CIX) will shortly release a suite of price assessments that track the value of carbon credits in its upcoming standardised contracts based on REDD+ projects, which will do done in tandem with the launch of its upcoming spot trading platform, it announced on Thursday.
VCMI offers advice to host-countries on interacting with voluntary carbon market
Multi-stakeholder group the Voluntary Carbon Market Integrity Initiative (VCMI) launched a new toolkit on Thursday aiming to help host country governments navigate the complexities of interacting with the voluntary carbon market (VCM).
Drax signs $600k BECCS carbon removal credits deal
UK-based energy company Drax Group has inked a $600,000 deal to sell carbon removal credits from its first bioenergy with carbon capture and storage (BECCS) facility in the US.
US startup unveils plans for carbon removals forward-crediting platform
A California-based climate technology firm announced the world’s first blockchain-based forward-crediting platform for durable carbon removals, joining ongoing efforts to help scale the nascent industry.
US reforestation carbon credits need to hit $50, climate tech firm finds
US landowners need a carbon credit price of $50 to $82 to make reforestation projects viable, far higher than current prices, according to new analysis from an MRV firm and marketplace.
Carbon credit infrastructure firm pots $19 mln to build out supplier platform, triple headcount
A US-based application programming interface (API) on Thursday announced a $19 mln fundraise to help develop the company’s digital infrastructure for voluntary carbon markets, along with greatly expanding headcount and launching a new overseas headquarters.
ASIA PACIFIC
China set for record high emissions in ’23 but peaking possible with renewables growth, research says
China’s CO2 emissions grew by 4% in the first quarter of the year, reaching a new record and putting the world’s largest GHG emitter on track for a new high in annual emissions this year, according to research released on Friday.
China’s Greater Bay Area urged to integrate carbon markets
Carbon markets in China’s Greater Bay Area should be integrated to help realise decarbonisation in the region, and more financial tools need to be unlocked to further accelerate the transition for the economic powerhouse, a report has urged.
Japanese oil company makes forest carbon investments at home and abroad
A major Japanese oil company has announced its latest investment in a US-based forestry fund while forming an alliance to support the creation of domestic forest-derived carbon credits, it announced on Thursday.
Japanese drinks-maker trialling CO2-absorbing vending machines
A Japanese drinks-maker is trialling the installation of CO2-absorbing technology in its vending machines.
NZ Market: NZU price slips lower as uncertainty continues
The spot price for NZUs fell lower on Thursday to reach a 21-month low, as the combination of market uncertainty and the cyclical quiet period has seen demand slip.
Natural Carbon appoints new director, Viridios taps new heads of market, policy
Australian carbon project developer Natural Carbon has appointed a new director of carbon markets, while fintech company Viridios has added a new head of policy and market development and head of legal policy to its ranks, the companies announced.
AMERICAS
WCI Markets: California carbon slips to four-week low as auction approaches, WCA trade dries up
California Carbon Allowance (CCA) prices largely trended downward this week in the lead-up to next week’s joint auction, while Washington Carbon Allowance (WCA) trade came to a near halt as participants awaited further programme clarity from the scheme’s own forthcoming sale.
California plans LCFS workshop on automatically strengthening CI targets
California regulator ARB on Thursday announced it will hold a workshop to gather feedback on a potential mechanism to automatically accelerate the carbon intensity (CI) benchmarks set by the transportation sector Low Carbon Fuel Standard (LCFS) programme.
INTERNATIONAL
New tools, datasets launched to enhance global forest carbon monitoring
A suite of new tools and datasets was unveiled this week, aimed at supporting the monitoring and management of the world’s forest carbon stocks and advancing countries’ efforts to protect and restore nature and achieve net zero emissions.
BIODIVERSITY (FREE TO READ)
Sowing the seeds: Startup to develop biodiversity credit opportunities for farmers
A Switzerland-based startup is developing a concept that will allow farmers and land stewards to earn biodiversity credits for sustainable agriculture practices such as syntropic farming.
Biodiversity Pulse Weekly: Thursday May 11, 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).
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CONFERENCES
Grow to Zero! – June 26-27, London: Insightful discussions on carbon market evolution? Thought leadership on blended finance for impact? Networking with impact investors and sustainability professionals? Find it all at Gold Standard’s Conference, Grow to Zero! 26-27 June 2023 at Kings Place, London. Tickets and agenda details available here: www.growtozero.co.uk
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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
Hot fuzz – A committee set up to pressure governments into complying with the Paris Agreement has issued its first warnings, rebuking the Vatican City for not submitting a climate plan. Eight years after the Paris climate agreement was created, its Implementation and Compliance Committee (PAICC) issued its first reprimands this week. Committee co-chair Christina Voigt said that two governments had been told that they were in breach of legally-binding aspects of the agreement and asked to explain themselves. Voigt would not tell Climate Home which governments were involved. She said one failed to submit a climate plan and one failed to tell the UN what level of climate finance it expects to provide. The Vatican City, the micro-state in Rome where the Pope lives, is the only government that has ratified the Paris Agreement but not submitted an NDC climate plan. It has a population of just 825 and only ratified the agreement in September 2022. Voigt told Climate Home the government the committee warned had joined the Paris Agreement “recently”. The other reprimand was for breaching the Paris Agreement’s climate finance requirement. Developed countries need to tell the UN every two years how much money they expect to give developing countries to help them tackle and adapt to the climate crisis. The Paris Agreement has no list of which countries are considered developed and Voigt said that had been a “difficult question” which “the committee had to get their 24 heads around”.
EMEA
No more money for fossil fuels – BNP Paribas will no longer invest in the development of new oil and gas fields, as it reiterated its target of an 80% cut of its oil exploration financing by 2030. Reuters reports that the new commitments, coming days ahead of BNP’s annual shareholder meeting, also included a complete phasing out of all financing to non-diversified oil companies. BNP Paribas had already announced plans in January to cut oil exploration financing by 80% by 2030, and on Thursday it confirmed it was on track with its climate change targets for the power generation, oil and gas and automotive sectors. The bank also said it had set new portfolio alignment targets for 2030 for the emissions-heavy steel, aluminium and cement sectors, saying it was looking to cut the “emissions intensity” of its investments by 10 to 25% from last year.
Charging ahead – The European Commission approved €837 mln Spanish scheme for the production of batteries for electric and connected vehicles in line with the Green Deal Industrial Plan. The scheme was approved under the State aid Temporary Crisis and Transition Framework.
Four winds of Eirinn – The Irish government on Thursday awarded support contracts to four bidders in its first ever offshore wind auction, according to media reports. The awards totalled 3.08 GW of capacity which were awarded at an average of €86.05/MWh. Three of the wind farms will be located off the country’s east coast, and the fourth off the western shore of the county of Connemara. The successful bidders were Statkraft and Copenhagen Infrastructure Partners (500MW), Fred Olsen Seawind and EDF Renewables (1.3 GW), RWE and Saorgus Energy (824 MW) and Ireland’s Fuinneamh Sceirde Teoranta (450 MW).
ASIA PACIFIC
Biofuel deal – Astomos, a Japanese LPG trading company, and oil and gas producer Inpex, have reached an agreement to supply B24 biofuel bunker to a Very Large Gas Carrier (VLGC) chartered by Astomos in the United Arab Emirates (UAE), the companies announced in a press release. Over the next several months, Inpex will supply B24 biofuel to the VLGC through a bunker vessel operated by Monjasa1 at Khor Fakkan port in the UAE emirate of Sharjah. This will be the first instance in which biofuel is supplied to a VLGC in the Middle East. B24 biofuel consists of 24% fatty acid methyl ester (FAME2) and 76% very low sulfur fuel oil (VLSFO), a conventional bunker fuel. Dubai-based Neutral Fuels3 will produce the FAME from waste cooking oil collected from restaurants and hotels in the UAE. Monjasa will supply the VLSFO and blend it with the FAME. The use of B24 biofuel is expected to reduce CO2 emissions by 15-20% compared to conventional bunker fuel. The FAME is certified by the International Sustainability & Carbon Certification system, which guarantees the sustainability of its sources.
Big Battery Splash — The Western Australia state government has committed A$3 bln ($2 bln) on a renewable battery storage system and wind generation as part of a major overhaul of its energy network to fast track its switch from fossil-fuels to renewables, RenewEconomy reports. It comes just a day after the government released new modelling as part of a plan to build a stunning 51GW of new wind, solar and storage capacity to upgrade the grid so it can power the massive opportunities in green hydrogen, critical minerals and other green industries. The Collie battery will be sized at 500 MW and four hours of storage, so 2000 MWh, and is due to be built by 2025. Synergy will also build a 200 MW battery with four hours of storage (800MWh) at Kwinana, effectively the second stage of the first 100 MW/200 MWh Kwinana battery that is now working through its commissioning process.
VOLUNTARY
New CCS methodology – Gold Standard has started a public consultation on a new methodology for biomass fermentation with carbon capture and geologic storage. The methodology, developed by Summit Carbon Solutions, is for projects that involve capturing CO2 from the fermentation of renewable biomass, such as from the production of bioethanol and animal feed products, and then transporting the CO2 via pipeline, and injecting it into secure underground formations. It includes applicability criteria for determining a project’s eligibility, as well as monitoring and quantification protocols. The consultation will open for 30 days from 11 May to 9 June.
Rock star – Carbon removal company Eion on Thursday announced its industry-first patent to directly scale CO2 removal through enhanced rock weathering. The California-based firm said its approach directly measures CO2 removed by mineral weathering in soils using immobile trace elements to show applied minerals removed CO2 from the atmosphere and were transported away to be permanently sequestered. The company said its measurement approach can be deployed widely for ERW with any silicate rock. Eion in December announced the close of a Series A funding round exceeding $12 million, with e-commerce firm Stripe having previously agreed to buy some of the company’s carbon removal credits.
So sweet – Swiss chocolatier Barry Callebaut has refreshed its ambitious Forever Chocolate initiative, realigning its sustainability targets to focus more on climate action and setting new goals for 2030, while shifting its strategy away from carbon offsetting and towards insetting. Launched in 2016, Barry Callebaut said Forever Chocolate seeks to make sustainable chocolate the norm beyond 2025, Confectionery News reports. To ensure better alignment with the Paris Agreement, Barry Callebaut will focus increasingly on insetting CO2 through agroforestry, moving away from offsetting. This implies that by 2030, Barry Callebaut will have decarbonised its footprint in line with global efforts to limit global warming to 1.5C. Following this ambitious trajectory, Barry Callebaut will be a net zero company by 2050, while in addition to its decarbonisation efforts, the firm maintains its target to be forest positive by 2025. Forever Chocolate’s achievements to date include a reduction of overall carbon intensity per tonne of product by more than 18% since 2016, and traceability established for almost 80% of farms in Barry Callebaut’s direct supply chain.
Green meeting – Emissions from this year’s Annual Investment Meeting (AIM) in Abu Dhabi will be offset by credits from Gold Standard after the investors platform and the standards body signed a Memorandum of Understanding to promote dialogue for sustainable development. Gold Standard will retire credits from a project that supports the provision of safe water to hundreds of households within the Central Province of Zambia. Retirement of credits from the AIM will be capped at $30,000.
AMERICAS
Better biogas – The American Biogas Council (ABC) on Thursday announced it has engaged consultancy EcoEngineers to plan, develop, and publish a new carbon accounting methodology to measure the carbon intensity of all biogas projects by the end of 2023. Using existing frameworks, such as the California Low Carbon Fuel Standard (LCFS) pathway for RNG and the Greenhouse Gas (GHG) Protocol, ABC said the new methodology will develop a strong science-based carbon accounting framework that can be used to more accurately measure the carbon intensity of biogas projects, looking at the whole lifecycle from feedstock to end use of all project products.
SCIENCE & TECH
Low-carbon breakthrough – Honeywell International announced a new technology to produce lower-carbon aviation fuel from green hydrogen and CO2 captured from industry, which can help cut greenhouse gas emissions from aviation, one of the hardest sectors to electrify and decarbonise, Reuters reports. Sustainable aviation fuel, or SAF, is typically made using biomass-based feedstocks such as soybean oil and used cooking oil. Honeywell’s new technology would combine green hydrogen – produced in electrolysers from renewable energy and water – and CO2 siphoned off industrial smokestacks to create lower-carbon methanol, which is then turned into fuels including SAF. Honeywell said its process can reduce greenhouse gas emissions by 88% compared with traditional petroleum-based jet fuel. US President Joe Biden’s administration has targeted 3 bln gallons (11.4 bln liters) of SAF production per year in the US by 2030 as part of its efforts to fight climate change.
AND FINALLY…
The rise of ‘climmigration’ – Germany should introduce a ‘climate passport’ for people displaced by the effects of climate change, an independent government advisory panel has proposed in its annual report. The Expert Council on Integration and Migration (SVR) said that Germany, as a high CO2 emitter and natural resource consumer, has a special responsibility to reduce its emissions and support countries disproportionally affected by climate change, and should be an international pioneer in helping climate refugees. They suggest the introduction of a ‘climate passport’, a ‘climate card’ and a ‘climate work visa’. The passport, which would offer permanent residency in the country, should be limited to people whose “entire territory” was lost due to the consequences of climate change, such as islands disappearing under sea level rise, the council suggested. The latter two offers should be available to people from countries that are significantly affected by the impacts of climate change but it would envision their return after the most serious consequences have been mitigated and adaptation measures implemented. (Clean Energy Wire)
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