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TOP STORY

Zimbabwe voids all existing carbon offset agreements, lays claim to half of future proceeds -report

The Zimbabwe government has declared all current carbon offset deals in the country “null and void” and will take at a 50% cut of all future contracts, a media outlet reported Tuesday, in what could further imperil an already under-fire REDD+ project and set a precedent for other countries to extract concessions on international emissions trade.

VOLUNTARY

ANALYSIS: The permanence press – durability doubts linger for fast-scaling biochar

Debate persists on whether biochar warrants recognition as a “permanent” carbon removal solution, with scientific estimates evolving on how long CO2 remains captured, as a growing chorus calls for its rapid upscaling because of its economic and other benefits relative to several engineered alternatives.

INTERVIEW: Evaluating “legacy credits” key to solving voluntary carbon market integrity issues

Fixing the status of legacy credits with over quantification issues to enable households to receive the benefits of clean cookstove projects, plugging potential leakage in REDD+ forestry offset programmes, and addressing methodology overlap that leads to double-counting can all help restore credibility of the voluntary carbon market (VCM), an expert told Carbon Pulse in an interview on Monday.

Asset manager Schroders launches carbon offset share classes to counter investor fund holdings’ emissions

British multinational asset managers Schroders have launched carbon offset share classes to allow investors to counter the GHG output associated with their fund holdings.

Brainy satellite set to improve monitoring of REDD projects

A new wave of satellite sophistication is set to improve monitoring of REDD+ avoided deforestation projects with the upcoming launch of the VOLT mission, sponsored by the European Space Agency and the UK, claims a project developer.

Methane offset developer buys US-based orphaned wells remediator

A Pennsylvania company that has been plugging abandoned oil and gas wells in the Appalachian Basin for 50 years is selling a majority stake to a Florida-headquartered methane offset developer, the firms announced Tuesday.

3M, carbon capture experts Svante announce CO2 removals collaboration

American multinational conglomerate 3M is collaborating with Canadian carbon capture experts Svante Technologies to develop materials designed to remove CO2 from the atmosphere, the firms announced Tuesday.

AMERICAS

PREVIEW: WCI Q2 auction primed for discounted settlement, with outside chance of a premium

Most traders expect the California-Quebec current vintage carbon auction on Wednesday to clear at a small-to-medium discount to prevailing allowance prices, though some feel bolstered sentiment in the WCI programme could lead to the first premium settlement in a year.

IncubEx, Nodal Exchange unveil first DEBs-tagged California offset futures contract

Environmental products developer IncubEx and commodity trading platform Nodal Exchange this month will launch a California Carbon Offset (CCO) futures contract for credits that have direct environmental benefits to the state (DEBs).

EMEA

French-backed “nuclear alliance” of EU nations seek independent supply chain for energy security, climate plans

Ministers from pro-nuclear EU countries are calling for an independent supply chain, as per a declaration signed on Tuesday in Paris, as governments seek to tap and invest in the energy source to bolster supply security and to help them meet their climate goals.

EU climate chief wants Italy to stop putting forth a choice between jobs and climate

Italy’s government and businesses shouldn’t make citizens choose between keeping their jobs and advancing the low-carbon transition, the European Commission’s climate chief Frans Timmermans said Monday.

Area the size of Belgium needed to meet EU wind and solar targets -report

An area the size of Belgium will be needed to meet the EU’s renewable energy targets by 2040 for just France, Germany, and Italy, according a consultancy report that noted how large chunks of land are precluded from development because of strict regulations and environmental limitations.

United Utilities leads £8.9 mln UK programme for nature-based water solutions

UK-based United Utilities has announced it will spearhead an £8.9-million national programme aimed at integrating more nature-based solutions into the water sector.

Euro Markets: EUAs post steady gains as market anticipates auction pause, trader positioning data

European carbon prices were modestly firmer on Tuesday morning as the market anticipated the lack of auction supply for the rest of the week due to the fortnightly pause in Polish sales and public holidays in Germany.

NYMEX to relaunch EU carbon allowance derivatives trading

US-based commodities exchange operator NYMEX will relaunch trade in EU Allowance futures and options next month, Carbon Pulse has learned.

ASIA PACIFIC

Australia’s Victoria state sets 2035 emissions reduction target, net zero by 2045

The Australian state of Victoria on Tuesday pledged to cut its greenhouse gas emissions by 75-80% below 2005 levels by 2035, on the way to net zero emissions by 2045.

NZ Market: NZU price falls lower still ahead of this week’s budget

The NZU price closed even lower on Tuesday as the market continues to backslide from a policy landscape of uncertainty that is weighing on the market.

Singapore receives first LNG cargo under Pavilion Energy’s offset accounting methodology

Commodity trader Pavilion Energy has received an LNG cargo paired with a statement of GHG emissions (SGE) from QatarEnergy at the Singapore import terminal, the first time the island nation has seen such a cargo, the company announced Tuesday.

Vertis director moves to Singapore to take up carbon trading role

A commercial director at Vertis Environmental finance has relocated to Singapore to head up an environmental trading desk.

SHIPPING

Assortment of risks jeopardising shipping sector efforts to decarbonise, industry survey finds

Uncertainty over fuel availability and infrastructure amongst the risks jeopardising efforts to meet the global shipping sector’s decarbonisation targets, according to a new report.

BIODIVERSITY (FREE TO READ)

Biodiversity market needs greater flexibility but starts in “more advanced” position than carbon -Verra

The burgeoning biodiversity market should be given more flexibility around the measurement and reporting of impact as it grows, compared to voluntary carbon, and also starts further along the development process, according to a senior member of standard body Verra, speaking at an event on Tuesday.

Report argues pricing nature and conservation efforts alone are insufficient to preserve biodiversity

Putting pricing incentives for reforestation and enlarging protection areas will not stop biodiversity decline and the ongoing loss of critical ecosystem functions unless they are accompanied by measures that also target managed landscapes, according to a new study published in a journal by the Potsdam Institute for Climate Impact Research (PIK).

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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

EMEA

Stop the cutting – The Council of EU member states officially adopted new rules against deforestation worldwide, by giving the final go-ahead to a regulation that aims to minimise risks associated with products that are placed on or exported from the EU market. The regulation sets mandatory due diligence rules for all operators and traders who place, make available or export the following commodities from the EU market: palm oil, cattle, wood, coffee, cocoa, rubber and soy. The rules also apply to a number of derived products such as chocolate, furniture, printed paper and selected palm oil based derivatives. Only products that have been produced on land that has not been subject to deforestation or forest degradation after Dec. 31 2020 will be allowed on the EU market or to be exported from the EU. The plan was already endorsed by the EU Parliament in April.

Low impact – In the month after Germany shut down its last three operating nuclear power plants, the effect on electricity prices in the country has been small, the vice head of the Federal Network Agency (BNetzA) has said, as reported by Clean Energy Wire. Power market prices have not moved upwards and, if anything, electricity became cheaper between April 15 and May 15, as the loss of nuclear power capacity was outweighed by other effects, in particular the growing share of renewable power sources, they said. They added that a real assessment would only be possible once one or two full years could be compared. The three plants had produced about 30 TWh of electricity per year.

Coal slump – European coal fell below $100/tonne to the lowest in almost two years as a drop in power demand and gas prices curbed use of the dirtier fuel, Bloomberg reports. Power plants have been favoring gas over coal, with strong imports of LNG boosting stockpiles and improving the region’s energy-security outlook. It’s a major change from last year, when Germany burned coal at the fastest pace in at least six years after Russia cut piped gas flows to Europe.

French sun – Europe’s largest PV module gigafactory will be built in the French city of Moselle, EIT InnoEnergy’s daughter Holosolis announced on Tuesday. The new production site will see the capacity of Europe’s current largest factory bested by almost 70% and will be fully operational from 2027. The factory will start production in 2025 and at full capacity will have a production capacity of 5GW per year, producing 10 mln photovoltaic modules annually. Committed to supporting local content, it will employ 1,700 people. This will support Europe’s goal of reaching 600 GW of solar energy by 2030.

For Pete’s sake – The Vatican City has announced a new partnership alongside the WRI to lower the emissions of Saint Peter’s Basilica as part of an ongoing net-zero pledge for the city. The two entities announced that they had conducted an inventory of the carbon emissions of the Basilica and its annexed complex of buildings following a methodology for climate mitigation that was created by WRI’s Faith and Sustainability Initiative and Washington-based Georgetown University. The Vatican is already committed to reducing its carbon footprint, with Pope Francis pledging carbon neutrality by 2050 in a 2021 video where he called for urgent collective action.

ASIA PACIFIC

Big plans – Vietnam’s prime minister approved a long-awaited power plan for this decade that needs $134.7 billion of funding for new power plants and grids, the government said late on Monday, in a move that may help unlock billions of dollars of foreign investment. The plan, known as PDP8, is aimed at ensuring energy security for the Southeast Asian country while it begins the transition from its current heavy reliance on coal to becoming carbon-neutral by midcentury. Amid internal squabbles and work on complex reforms, the plan has been delayed for more than two years, and has seen a dozen of draft versions before the approval by Prime Minister Pham Minh Chinh, which now needs the formal green light from the rubber-stamp parliament, possibly this month, before its final adoption. (Reuters)

Getting on with it – Singapore-listed lender OCBC Bank on Tuesday pledged to embark on decarbonisation targets in six carbon-intensive sectors, in a move that will see it join the other two local banks in their net-zero quests. The six sectors that the bank finances that emit the most greenhouse gas are: power, oil and gas, real estate, steel, aviation and shipping. They make up 42% of OCBC’s corporate and commercial banking loan portfolio. (Straits Times)

AMERICAS

Regina rebuttal – Saskatchewan Premier Scott Moe says the province is to continue using natural gas and possibly coal beyond the federal government’s target date. Moe said Tuesday the province’s existing and soon-to-be-built natural gas plants are to be used until their end of life, which would be well past the federal government’s 2035 net zero target. He said the province is also interested in running its two coal plants, one of which captures carbon, until their end of life in the early 2040s, arguing the facilities help keep power affordable and reliable. Moe’s comments come as the federal government develops electricity standards that propose provinces meet net zero targets by 2035. (Canadian Press)

Nice net value – The RGGI cap-and-trade programme added $669 mln in net economic value and nearly 8,000 job-years to participating states over 2018-20, according to a report published by The Analysis Group. The study also found that, over its 12-year history, RGGI has contributed to a 46% reduction in carbon emissions, raised $3.8 bln in allowance proceeds, produced $5.7 bln in net economic benefits, and added 48,000 job-years.

Clean country power – Electricity providers in the rural US can now apply for clean energy grants from an $11 bln pool provided by the Inflation Reduction Act (IRA), the White House announced Tuesday. Electrical cooperatives in rural areas can apply for $9.7 bln worth of grants for renewable energy, zero-emission, and carbon capture systems as of July 1. The remaining $1 bln announced today is earmarked for tribal utilities and renewable energy developers to take out forgivable loans on wind, solar, geothermal, biomass financing. (Reuters)

Sweet deal – Foremark Performance Chemicals, a portfolio company of SK Capital Partners, has acquired NexGen Chemical Technologies, a provider of alternative natural gas sweetening solutions. The acquisition aligns with Foremark’s strategy to support the transition to clean energy and to be the leading provider of solutions for safe and sustainable production of natural gas. Foremark uses carbon negative production processes to manufacture sweeteners that reduce methane emissions, increase production volumes from sour gas wells, and extend the lifespan of pipelines and production assets. The NexGen products will be integrated into Foremark’s site in La Porte, Texas.

VOLUNTARY

CORSIA crash – Xpansiv CBL’s GEO carbon credit prices slipped lower to trade at $1 on Tuesday, down from a settle of $1.40 on Friday, likely as a result of the CBL marketplace announcing that its standardised contract would not be amended to meet the vintage requirements of phase one of the ICAO’s scheme for international aviation emissions, known as CORSIA. The GEO contract reflects 2016 to 2020 vintages for eligible CORSIA credits, and will not be amended for the next phase of the CORSUA scheme between 2024 and 2026, which will require 2021 to 2026 vintage credits. Instead, CBL will launch a new contract. The GEO contract has been under pressure this month, and has dropped sharply from a settle of $1.65 on May 5.

Seaweed savers – UK-based startup Seafields is setting up fixed aquafarms in the Caribbean to produce sargassum seaweed to remove CO2 from the atmosphere after striking a partnership with fellow seaweed project developer MacroCarbon. Seafields will be given €600,000 by MacroCarbon from a €2 mln grant it received to develop the algae. Seafield plans to bail and store large quantities of the seaweed at over 4,000 metres below sea level in the deep abyssal plain of the Atlantic Ocean to trap CO2. Macrocarbon, launched in March as a spin-off from another start-up created just over a year earlier, is also starting with the cultivation of free-floating sargassum seaweed.

AND FINALLY…

ES-Jeez! – Only 4% of sustainably-labelled investment funds would automatically comply with ESG labelling requirements across the US, UK, and EU due to regulatory differences, according to new analysis by sustainability tech platform Clarity AI. The study revealed significant regulatory discrepancies across these regions, creating confusion for issuers and investors. The report also found that only 20% of EU Article 8 funds, labelled ‘sustainable’ or similar, plan to make sustainable investments account for more than 50% of the portfolio, thereby failing to meet the requirements set out in a recent European Securities and Markets Authority (ESMA) consultation. The analysis also called for stronger regulatory alignment across borders to avoid increasing market confusion and potential ‘greenwashing’. (Citywire)

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