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TOP STORY

Zimbabwe backs down from carbon projects bonfire threat -reports

Zimbabwe appears to have backed down from its threat to render “null and void” all existing carbon offset deals in the country.

VOLUNTARY

CEO of voluntary carbon certifier Verra to step down

Verra’s founding CEO is stepping down, the voluntary carbon market standard announced Monday.

Gold Standard launches new climate claims framework, teams with early movers to ‘go beyond’

Certifier Gold Standard on Monday launched plans for a new contribution claims framework to help companies take climate action beyond offsetting, while teaming up with others to initiate ideas on how firms should approach mitigating climate impacts outside their own value chain.

VCM Report: Prices sink further as buyers retreat and sovereigns perk up

Prices for carbon credits continued to sink lower over the past week, particularly for older vintages, as the long term bearish direction accelerated amid a whirlwind of African country initiatives to muscle into both the voluntary market and its sovereign nation rival under Article 6 of the Paris Agreement.

KraneShares’ carbon offset ETF sees net assets crash 90% in 13 months

Asset manager KraneShares on Friday saw the total net assets of its voluntary carbon offset exchange-traded fund dip to 90% below the starting value in just over the past year, as integrity concerns and a rough macroeconomic picture have rocked standardised credit prices.

UK-based ERW removals startup notches $12 mln investment, secures further forward credit sale

UK enhanced rock weathering (ERW) project developer UNDO has secured $12 million of fresh investment to scale operations globally, it announced Monday, with additional funding worth $1 mln to come from a further forward sale of carbon removal credits.

Japanese conglomerate eyes Angola forest carbon project

A major Japanese conglomerate has struck a deal with an Angolan agricultural firm on the potential rehabilitation of a degraded forestry area to launch its first carbon credit project in the Southern African nation.

Former US congressman to lead business development at refrigerant carbon credit developer

A former US Democratic Congressman has taken a business development role at a Washington DC-based company that is seeking to deploy refrigerant carbon credit projects across the globe.

Actively-restored tropical forests store much more carbon than other types, study shows

Actively-restored tropical forests have shown a much larger increase in carbon stocks compared to other types, new research has found.

EMEA

EU lawmakers delay approval of renewables goal amid divide over nuclear

The European Parliament has postponed a vote to approve the strengthening of the bloc’s renewables target, as division among member states over the role of nuclear threatens to disrupt a process previously seen as a formality.

Nuclear divide widens among EU ministers, as some urge weaker green disclosure rules

Pro- and anti-nuclear factions among the EU’s 27 nations re-emerged during Monday’s ministerial meeting on competition affairs, with some ministers calling for a reduction in newly-introduced sustainability reporting requirements for companies during the jarring session.

France unveils new climate plan targetting 50% emissions cuts by 2030

France on Monday unveiled an ambitious plan to accelerate its greenhouse gas emissions cuts, targeting a 50% reduction by 2030 compared to 1990 levels.

Euro Markets: EUAs suffer sharp morning drop before rallying slowly in quiet trading as energy droops

EUAs weakened sharply on Monday ahead of a full schedule auctions after a truncated timetable last week, eventually clawing back nearly half those losses even as energy prices fell again to further increase gas’ advantage over coal in power generation and diminish potential demand for carbon.

Nigerian oil and gas regulator to develop carbon market framework -media

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed plans to develop a regulatory framework for carbon pricing, according to local media sources, which would see firms active in the oil and gas sector pay for emissions as well as drive reductions via carbon credits.

ASIA PACIFIC

ACCU issuances from Australia’s biggest project type drop to zero

Some 180 human-induced regeneration (HIR) projects have had their Australian Carbon Credit Unit (ACCU) issuances put on hold since January after the Clean Energy Regulator (CER) began implementing the recommendations from the Chubb review.

Safeguard mechanism to drive ACCU demand, but supply crunch is coming, market analyst warns

Facilities covered under Australia’s Safeguard Mechanism are likely to hoard below baseline credits until they at least match the price of Australian Carbon Credit Units (ACCUs) later in the decade, a market analyst told a panel discussion Monday.

Australia to launch A$20 mln carbon outreach programme, as govt, regulator outline market reform progress

The Australian government will launch a new grants fund programme focussed on improving transparency and capacity in its carbon market, as the government and the Clean Energy Regulator detailed how it was progressing on key reforms.

Australia to consult on how carbon project proponent-led method process, integrity body will work, govt official says

Australia will soon consult on how the proponent-led carbon project method development will work and what role the market’s new integrity body will play in that process, as it seeks to implement the reforms of the recently held offset market review.

New Zealand announces major steel emissions reductions project

The New Zealand government on Sunday announced an agreement to fund emissions reductions of some 800,000 tonnes per year at the nation’s biggest recipient of free carbon allowances under the NZ emissions trading scheme.

Australian industry body marks overall progress in annual carbon scorecard, but warns of challenges ahead

An Australian carbon industry body has hailed the nationwide progress of federal, state, and territory governments on supporting the market’s development, while outlining the challenges ahead as the sector evolves.

Australia launches offshore CCS consultation on 10 acreage blocks

The Australian government has released a public consultation on its next release of offshore areas for greenhouse gas storage, in order to gain an understanding of its potential impacts.

AMERICAS

California lays out initial concepts for LCFS target step change, auto-acceleration mechanism

California regulator ARB on Monday published its initial design considerations for mechanisms to ratchet up the stringency of the Low Carbon Fuel Standard (LCFS), including a one-time ‘step change’ in the programme’s carbon intensity (CI) targets and a measure to automatically tighten the GHG reduction goals if set parameters are hit.

RGGI Market: Motivated buyer lifts RGAs to one-month high

RGGI Allowance (RGA) values rose over the past week as one large buyer reportedly drove the market higher, with traders offering different theories why either emitters or speculators could be behind the move.

INTERNATIONAL

Singapore, Kenya sign Article 6 MoU on carbon trading

Singapore and Kenya have signed a Memorandum of Understanding to develop a bilateral agreement on carbon credits generated under Article 6 of the Paris Agreement.

BIODIVERSITY (FREE TO READ)

Experts forecast flood of biodiversity credit demand but urge regulation

A strong wave of demand for biodiversity credits is expected within the next couple of years, experts speaking at an event in London on Monday predicted while urging standard-setting bodies to ensure rules exist to allow the market to scale with integrity.

Financial firms commit to nature action by signing biodiversity pledge

Another 15 financial institutions have signed up to the Finance for Biodiversity (FfB) pledge, committing to help reverse the ongoing nature loss and set specific biodiversity targets.

Equity index firms team up to launch biodiversity-linked suite

A biodiversity index suite has been released on Monday in an effort to help investors align their portfolios with their biodiversity impact reduction and sustainable development goals (SDGs) by screening for companies with low impact.

TNFD co-chair names September date for launch of final nature disclosure recommendations

The co-chair of the Taskforce on Nature-related Financial Disclosures (TNFD) has confirmed the launch date for the final nature reporting recommendations as Sep. 18, speaking at a conference in London on Monday, stating that the highly-anticipated disclosure guidelines will be presented at the New York Climate Week.

ICYM

EXCLUSIVE: Tanzania signs Africa’s ‘biggest’ forest carbon deal with Singapore holding company, lines up more deals with foreign investors

Tanzania has signed an MoU with a Singapore-registered holding company that was incorporated just six weeks ago to develop what could be by far the biggest carbon credit project yet in Africa, with sources telling Carbon Pulse that the government has other similar agreements akin to Zimbabwe’s controversial new approach that it has lined up with foreign investors.

G7 endorses more gas investment as “temporary” solution to kick Russian energy dependence

The G7 on Saturday endorsed new investments in natural gas as a “temporary” solution to reduce countries’ dependence on Russian energy amid the war in Ukraine, drawing sharp criticism from climate campaigners.

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Carbon Pulse is hiring!

• Head of EMEA, Carbon Pulse – London/Europe
• Asia-Pacific Environmental Markets Correspondent, Carbon Pulse – Asia-Pacific
• North American Environmental Markets Correspondent, Carbon Pulse – Eastern Time Zone
• North American Environmental Markets Correspondent, Carbon Pulse – Pacific Time Zone
• Feature Writer/Sub-Editor, Carbon Pulse – Europe

Job listings this week

• *Chief Financial Officer (CFO), Carbon Credits, CL-Invest – Oslo
• *Sales Trader, Voluntary Carbon Markets, AFS Energy – Amsterdam
• *Structured Carbon Deals Lead, Nature-based Solutions, Maya Climate – Berlin/London
• *Registry Architect, American Carbon Registry – Arlington, VA/Remote (US)
• Head of Carbon Strategy, Terraformation – Remote (US or Europe)
• Carbon Certification Specialist, Terraformation – Remote (North/South America or Europe)
• India Carbon Credit Manager, CapGemini – Mumbai
• Senior Manager, Carbon Projects, Conservation International – South Africa/Kenya/Liberia/Botswana
• Head of Carbon Markets, Toucan – Remote (Americas/Europe)

*Premium listings

Or click here to see all listings

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CONFERENCES

InnovationZero – May 24-25, London: A two-day, free-to-attend, access-all-areas international cleantech congress running taking place at London’s Olympia. Don’t miss out on the UK’s must-attend event to accelerate business action in the low-carbon transformation. Register for free

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

Methane madness – New research finds that only about 13% of global methane pollution is regulated, despite the super pollutant causing at least a quarter of current global warming. To achieve the goals laid out in the Paris accord, methane pollution should be cut by 40-45% by 2030, compared to 2020 levels. But the researchers from Queen Mary University of London found methane pollution is increasing faster than at any time since the 1980s. In the US, regulators are failing to regulate methane leakage from landfills, one of the largest sources of climate pollution in the country. The Environmental Integrity Project concluded that landfill-produced methane was responsible for the same amount of climate pollution as nearly 80 coal-fired power plants in 2021. (Climate Nexus)

We get it – Rich nations understand that South Africa has an immediate need to keep coal power plants running for longer to tackle electric power cuts despite an $8.5 bln clean energy transition deal, a German government spokesperson told Climate Home. They warned the South African government should not row back from a clear commitment to cutting long-term emissions. The country’s President, Cyril Ramaphosa, told its parliament last week the timetable to shift away from coal must be reconsidered while the country struggles with crippling daily blackouts. The US, UK, EU, Germany, and France are contributing funds for a landmark plan, known as a JETP to clean up South Africa’s coal-reliant electricity system.

Green partners – The EU and South Korea have signed a Green Partnership, whereby they recognise the importance of lowering greenhouse gases, phasing out of coal and working to address biodiversity loss and climate change. They identified areas for cooperation, including sharing information and technical consultations on their respective ETSs, as well as how to measure, report and verify emissions post 2030. They discussed the implementation of carbon border adjustment measures (CBAMs) that are compatible with WTO standards and ensure both international trade and environmental policies are respected. They also said they intend to “enhance the global momentum to address emissions from methane including through the Global Methane Pledge.” Via the new partnership, they also intend to intensify cooperation on renewable energy, hydrogen, energy efficiency, CCUS and batteries. Moreover, they intend to work together to promote concrete climate action at the G20.

US-PNG cooperation – The US State Department on Sunday announced it will aim to provide $12.5 mln to Papua New Guinea to help the country strengthen the critical resources and systems necessary to make communities more climate resilient. Through the US Agency for International Development (USAID), the government plans to increase PNG’s access to renewable energy and climate resilient water, support nature-based solutions, and protect the country’s biodiversity.

Trade offer – French President Emmanuel Macron expressed interest in helping Mongolia in its de-carbonisation strategy at a press conference in Ulaanbaatar after attending the G7 summit in Japan, as France hopes to acquire uranium from the country, rich in natural resources and sandwiched between Russia and China. Mongolia is a resource-rich country with abundant mineral resources of coal, copper, gold, zinc, rare earth elements and multiple other ores. Paris is seeking to “loosen the constraint exerted on Russia’s neighbours” and open up their choice of options, noting that Mongolia can also be part of European efforts to diversify supplies “to guarantee our energy sovereignty.” Regarding environmental targets, Macron expressed a keen interest in helping Mongolia – which relies on coal for up to 90% of its energy production – transition from its carbon-intensive industries towards greener and more sustainable alternatives. France has internationally recognised expertise in the construction of nuclear power plants. (Euractiv)

EMEA

Atomic question – Nuclear power must be treated on par with renewable sources in all European legislation as the bloc pursues plans to speed up its switch from fossil fuels toward cleaner electricity generation, French Energy Transition Minister Agnes Pannier-Runacher said on Sunday. France has formed a large alliance to accelerate the development of nuclear power, Pannier-Runacher said, noting that 16 of the European Union’s 27 member states support the fuel, while only Austria, Luxembourg, and Germany don’t want to use it. (Bloomberg)

Taxonomy is taxing – European business leaders have said that their companies face an “impossible task” implementing the bloc’s green taxonomy that labels sustainable investments. Finance directors of companies including BMW, Telefonica and BP under the CFO Platform of the European Round Table for Industry have urged the European Commission to improve guidance and delay the implementation, describing the rules as unclear, burdensome, and of little value to investors. (FT)

Hy-ndex – EEX is launching the world’s first market-based hydrogen index, the German-based exchange announced Monday. Hydrix provides information on actually traded prices for green hydrogen, which is determined from supply and demand prices of hydrogen together with renowned partners from industrial and energy sectors to ensure the necessary price transparency crucial for the growing market. “Hydrix closes a crucial pricing signal gap, which is foundational for a market ramp-up and further investment in the hydrogen economy. With a market-based index based on actual trade prices for hydrogen we are providing a benchmark that can be used for investment decisions. We are thus paving the path for the energy industry’s zero-carbon future and demonstrate our leadership in enabling the energy transition,” said EEX CEO Peter Reitz. Hydrix will be calculated on a weekly basis as of May 24 and will be published in euros per MWh on the EEX Transparency Platform every Wednesday at 1600 local time.

AMERICAS

More ambitious Brazil – Brazil’s President Lula plans to commit the country to a more ambitious climate change goal this year, addressing criticisms of the previous target set by his far-right predecessor Jair Bolsonaro, two sources told Reuters. In 2021, amid growing global outrage over Bolsonaro’s light-touch stewardship of the Amazon rainforest, his government pledged to cut GHGs by 50% by 2030, up from a previous commitment of 43%. But Bolsonaro’s government used a higher, 2005 baseline – a move that made it easier for Brazil to reach its target compared with the previous pledge and that was widely criticized by environmentalists. Brazilian lobby group Climate Observatory calculated that the Bolsonaro target would allow an additional 400 Mt to be emitted, compared to the prior target. To address those issues, Lula’s leftist government intends to maintain the 50% reduction but fix the issue with the baseline, two sources with direct knowledge of the matter said. The goal is to issue the revised target later this year, and the government is exploring ways to simplify the target, including issuing the exact number of GHGs that the country will seek to cut.

Under threat – 10 mln acres (4 mln ha) of Colombian rainforest are under threat without new policies, according to a recent study. Researchers from the Amazonian Scientific Research Institute Sinchi analysed the potential future of the Colombian Amazon Rainforest up until 2040. The results, based on analysing 18 years of data from forest monitoring, show three possible future scenarios depending on deforestation policies. With current trends, loss could amount to 2.1 mln hectares (5.2 mln acres) of Amazon Rainforest. However, in the worst-case scenario – if extractivist policies are implemented – deforestation could reach 4.3 mln hectares (10.6 mln acres). On the other hand, if the cattle ranching industry is reduced and sustainable development achieved, at least 3.5 mln hectares (8.6 mln acres) of forest could be saved by 2040. (Mongabay)

AVIATION

Hy flyers – The roll out of hydrogen planes in Europe will need huge investment and require a tax on traditional jet fuels, a new study by a clean energy group finds, showing the scale of the challenge for policymakers in driving green aviation. Airbus, the world’s largest plane maker, has said it aims to fly a zero-emissions hydrogen-powered aircraft by 2035 but has cautioned about the pace of development of the necessary infrastructure. The study published by the NGO Transport & Environment on Monday, found that the cost of developing the hydrogen supply chain in Europe would be €299 bln between 2025 and 2050, largely made up of the cost of green hydrogen production, liquefaction, and distribution. The high cost would make hydrogen planes 8% more expensive than jet-fuelled aircraft in 2035 unless kerosene was taxed, it estimated. If jet fuel was taxed and a price on carbon emissions introduced, however, hydrogen planes could be 2% cheaper to operate, the study found. The research factored in a carbon price of €127/tonne of CO2 by the year 2035, compared to around €85 currently in the EU ETS. Kerosene taxation has not yet been introduced but the T&E group based its calculations for a tax in line with current proposals put forward by the European Commission. This estimates a tax of about €0.37 per litre. (FT)

Sky-high profits – Ryanair has bounced back to a near-record €1.4 bln profit over the 12 months ending March and expects to better that over the coming year, fuelled by a summer boom in which the low-cost airline will carry a record number of passengers, the Guardian reports. Europe’s largest airline swung back to profit in the year to the end of March after reporting a €355 mln loss in the previous year. The company said it was cautiously optimistic that it would increase profits again this year, which could result in it topping the record €1.45 bln it made in 2018 and expects to carry 186 mln people this year, with a long-term ambition to fly 300 mln a year by 2034.

Cleared for take-off – Global credit ratings business DBRS Morningstar says airlines have raised only $5 bln in sustainability-linked finance since 2018 but expects this to pick up as the aviation sector needs to invest around $175 bln annually to achieve net zero by 2050. In addition to the possible increase in funding, benefits of raising sustainable financing include enhancing ESG credibility and the potential to lower the cost of funding, explains DBRS in a client report. It says sustainability-linked bonds (SLBs) and transition bonds are likely to emerge as the key instruments of choice for the sector. However, airlines’ key performance indicators (KPIs) under their SLBs are likely to get more aggressive over the coming years as the market matures. (GreenAir News)

VOLUNTARY

10 out of 10 – Scientists from the Aerospace Information Research Institute (AIR) at the Chinese Academy of Sciences (CAS), have proposed a new algorithm named AGAR that can detect tree heights using 10-cm stereoscopic satellite imagery. They say the development could open a new era for the detection of tree heights and contribute to the assessment of forest productivity, health, biodiversity, and carbon stock. Current techniques struggle to separate terrain elevations from forest heights due to the occlusion of forest canopies and limited penetration capability of passive optical imagery. However, the AGAR algorithm, when tested with 10-cm imagery, effectively separated terrains from forest heights and provided accurate predictions of tree heights. (Mirage News)

Soft solution – Commodities trading software firm ION has launched a carbon trading portal, Carbon Zero, for trading and managing carbon credits and environmental certificates across the entire lifecycle. It aims to enable businesses to monitor risk exposures, prices, and P&L in real time, allowing deployment of hedging strategies with advanced risk analytics, using tools such as stress testing, portfolio limits, and Value-at-Risk (VaR).

SCIENCE & TECH

Under Musk’s watch – Some of the world’s top scientists are struggling to deal with what they describe as a huge rise in abuse from climate crisis deniers on Twitter since the social media platform was taken over by Elon Musk last year. Since then, key figures who ensured “trusted” content was prioritised have been sacked, according to one scientist, and Twitter’s sustainability arm has vanished. At the same time several users with millions of followers who propagate false statements about the climate emergency, including Donald Trump and right-wing culture warrior Jordan Peterson, have had their accounts reinstated. Climate scientists say the change has been stark, and they are fighting to make themselves heard over a “barrage” of often hostile comments. (Guardian)

AND FINALLY…

Sportswashing – Car manufacturers are spending $4.5 bln annually on sports sponsorship deals, often exaggerating their sustainability efforts, according to a report by the Badvertising campaign group and the New Weather Institute. The figure, a substantial rise from $1.28 bln in 2018, reflects the auto industry’s intent to bolster its image. BMW and Toyota were identified as the biggest auto sponsors in sports, with over 120 partnerships across 20 sports. The report criticised these relationships, pointing out that road vehicles contribute to 70% of the transport sector’s climate impact, which represents around 15% of global emissions. Furthermore, these two companies sold more than 12.5 mln vehicles with internal combustion engines in 2021, which will generate 855 Mt of CO2 over their lifetimes. The report concludes by urging a shift from individual car ownership towards shared and public mobility. (edie)

Bonus – Another funny analogy about carbon offsets.

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