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TOP STORY

Delta Air Lines, once offsetting pioneer, sued for carbon neutrality claims

A pair of California-based law firms filed a putative class-action case on Tuesday against major US-based Delta Air Lines for misrepresenting the total environmental impact of its business operations through advertisements of its pioneering carbon neutrality claims.

EMEA

Lawmakers eye splitting of issues under EU’s carbon removals bill

Lawmakers are weighing whether the EU’s law to certify carbon removals should make a clear distinction on how policy will support land-based carbon sequestration compared to more durable solutions, with experts eyeing a role for the latter in the bloc’s flagship carbon market.

EU’s lead lawmaker seeks wider input to set priorities for net zero industry technologies

The European Parliament’s lead negotiator on the bloc’s net zero industry strategy wants to eliminate a proposed fixed list of “strategic technologies” in favour of getting more voices to decide on funding priorities.

Euro Markets: EUAs slide to new four-month low on sustained selling while UKAs plunge to 21-month low

European carbon slid to a new four-month low on Tuesday, wiping out the modest gains of a holiday-affected Monday session as sentiment continued to weaken, while UK emissions prices tumbled to their lowest in 21 months as the demand outlook remained weak.

Newly-formed EU cement alliance aims to halve sector’s emissions

Revising EU policies and standards could help to slash the emissions from producing cement by more than 50%, according to a multi-stakeholder alliance launched in Brussels on Tuesday.

Senegal municipality signs four-part deal with carbon project developer

A carbon project developer has clinched a four-part agreement with a municipal government in Senegal, the company said on Monday, outlining details of the deal that targets the development of both carbon and biodiversity credits from the various initiatives.

Turkey launches project tender for carbon market design help

Turkey has launched a project tender to source help in designing a national carbon market.

AMERICAS

PREVIEW: Washington Q2 carbon auction expected to clear above Tier 1 reserve price

Traders expect the second ever Washington Carbon Allowance (WCA) sale on Wednesday will trigger Tier 1 of the Allowance Price Containment Reserve (APCR) and make additional permit volume available, after the secondary market slammed on the brakes halfway through this month.

RGGI Market: RGAs jump to 5-mth high as options activity spikes

RGGI Allowance (RGA) values continued their trek higher over the last five-day period on sizeable option activity, even as Pennsylvania’s Supreme Court heard arguments on the state’s cap-and-trade participation injunction and a Virginia board announced the date to vote on its own power sector carbon market repeal.

Brazilian bank accepting carbon credits as payment in property auction

A Brazilian financial services firm is is auctioning off rural properties across six states and is accepting carbon credits as payment for the land as part of a promotional exercise to encourage the use of offsets, the company announced Monday.

Accenture to buy Brazil-based sustainability consultancy

Professional services firm Accenture on Monday announced its intent to acquire a Brazil-based sustainability consultancy.

VOLUNTARY

Major blue carbon project gets Pakistan govt approval to operate in voluntary market

The Pakistan government has given its approval for a major mangrove project to sell carbon credits to international buyers in the voluntary carbon market over the next two decades, with corresponding adjustments (CA) to be carried out in line with Paris Agreement specifications.

VCM Report: Standardised carbon prices slump further amid buying void

Standardised contracts continued to slide over the past week to reflect the lack of buying interest for old or unspecified credits as well as the weight of oversupply, while demand for fresher and specific credits in the over-the-counter market was steady.

Sumitomo invests in US-based DAC firm, partnering to launch new global CCUS business

Japan’s Sumitomo on Tuesday announced an investment in a US-based direct air capture (DAC) firm, partnering to develop a new global business focussed on CCUS.

Global consultancy says rising carbon offsetting costs pose risk to UK businesses

The cost of corporate carbon offsetting could double by the end of the decade and increase by a factor of thousands under a mid-century carbon removal scenario posing risks to UK businesses striving to meet net zero commitments, according to analysis published on Tuesday by a major global consultancy.

ACX teams up with Swiss offset verifier to certify environmental claims

ACX, a global exchange formerly known as AirCarbon Exchange, has teamed up with a Swiss-based certification standard for carbon offset commodities to certify environmental claims, the two companies announced on Tuesday.

Tech giant leads £5.3 mln pre-seed raise for UK removals startup

A British carbon removals platform has raised £5.3 mln in a pre-seed funding round led by a large technology company that it will use to scale its portfolio, the firm announced Tuesday.

ASIA PACIFIC

NZ Carbon Fund takes a 20% hit as low NZU price bites

A New Zealand exchange-traded fund exposed to the country’s emissions trading scheme has seen its value fall more than 20% due to the tumultuous collapse in the NZU price over the last six months, the fund announced.

Australian agri-food tech investor launches carbon, climate focussed start-up accelerator

An Australian agri-food tech investor has committed funding to a new accelerator to support to 10 carbon and climate focussed start-up companies, it announced Monday.

Greening Australia appoints new CEO

Australian carbon offset developer Greening Australia has appointed the former CEO of Bush Heritage Australia for its top job, the company announced on Saturday.

Australia’s Commonwealth Bank invests in carbon developer, as banks’ lending habits in the spotlight

The Commonwealth Bank has partnered with a carbon project developer to expand its native seed production to help meet growing demand for carbon and biodiversity restoration projects, the company announced Tuesday, as new research has highlighted Australian banks’ continued spending on fossil fuels.

AU market: ACCU price slips to 3-month low as govt begins recruiting for market integrity body chair

The price for Australian Carbon Credit Units (ACCU) has slumped in recent days, while the government has begun its search for the full-time chair of the soon-to-be created Carbon Abatement Integrity Committee chair, tasked with overseeing the market.

INTERNATIONAL

Tensions rising over climate finance ahead of resumption of UN talks

There is “no clear flight path” to progressing the provision of rich-to-poor climate finance at year-end COP28 UN negotiations, according to experts speaking on Monday ahead of a preparatory meeting in Bonn who feared the issue could become challenging in light of recent criticism of the UAE hosts.

BIODIVERSITY (FREE TO READ)

Researchers say rich countries should compensate for biodiversity loss in Global South

People in rich nations’ excessive consumption has been driving global biodiversity loss, and they should pay compensation via loss and damage funds to countries whose natural habitats are being exploited, a group of researchers have argued.

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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

Job listings this week

• *Vice President, Business Development (APAC), Everland – Singapore
• *Land Use Methodology Development Manager, GreenCollar – Australia/US
• *Forest Carbon Technical Advisor, WCS – Phnom Penh/TBD
• *Associate Director, Sustainable Commodities Production, WCS – Remote (NYC preferred)
• *Portfolio Manager/Senior Carbon Trader, Carbon Cap – London
• *Chief Financial Officer (CFO), Carbon Credits, CL-Invest – Oslo
• *Registry Architect, American Carbon Registry – Arlington, VA/Remote (US)
• Head of Carbon Market Analytics, Trove – London (Hybrid)
• PR Associate Director, Sustainability and Voluntary Carbon Markets, Leading UK Environmental Consultancy – London (Hybrid)
• Chair, Emissions Reduction Assurance/Carbon Abatement Integrity Committee – Canberra
• Environmental Consultant (Nature-Based Solutions), Corporate Carbon – Sydney
• Senior Policy Analyst, Market Development, NZ Ministry for the Environment – Wellington
• Carbon Solutions Project Manager, Energy Changes Projektentwicklung GmbH – Vienna, Austria
• Sales Development Representative (North America), Everland – Various locations (Remote US)
• Sales Development Representative (Europe), Everland – Remote (UK)
• Forest Carbon Lead, Rainforest Builder – Flexible Location

*Premium listings

Or click here to see all listings

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CONFERENCES

Sylvera’s Carbon Markets Summit – June 8, Online: Sylvera’s second annual Carbon Markets Summit is a week away. Join us on Thursday, June 8th for a dynamic virtual event that brings together corporate sustainability, policy and financial market leaders from Pachama, Bain & Co., Morgan Stanley, JPMorgan Chase, VCMI, SBTi, Aon, and more, to discuss the state of the Voluntary Carbon Markets. We’ll explore a range of relevant topics including the market’s changing landscape, best practices for risk management, the latest in policy and growing regulatory interest, and much more. Register here

Carbon Fast Forward Mediterranean 2023 – June 22, Athens: Following the pandemic and the energy crisis in Europe, the environmental markets in the Mediterranean have gained momentum as a central tool for companies in the region to achieve their emissions reductions targets, through transparent carbon pricing and a robust cap-and-trade mechanism. The increased ambition that the European Commission has announced as part of its Fit for 55 package will bring the shipping sector into the EU ETS market and increase compliance costs for industrial installations and airlines operating in the region. Join us for this one-day, regionally-focussed event geared towards Mediterranean installation operators and shipowners. Register now, since spaces are very limited.

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

Argus Carbon Markets & Regulation Conference – July 5-7, Lisbon: In the wake of new legislative reforms to the EU ETS being confirmed, and as voluntary carbon markets continue to shift and evolve, the Argus Carbon Markets & Regulation Conference returns to Portugal to provide necessary insights for your company to remain competitive and aware of the upcoming opportunities within Europe and globally. This is your opportunity to stay up to date on the latest market dynamics through panel discussions, fire side chats, and presentations with industry peers and policy makers in-person. Join market-makers in defining both the compliance and voluntary carbon market by booking your place today. Carbon Pulse readers can enjoy a 10% discount with the code PULSE10. To find out more and to book your place, click here

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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

Mottley’s move – The top-level Summit for a New Global Financing Pact in Paris next month will lay out a $100 bln plan to drive more money into climate and development finance in poorer countries by providing currency guarantees to investors, according to a document seen by Reuters. The plan, which has not previously been reported, was sent to the world’s governments ahead of the meeting by the Bridgetown Initiative spearheaded by Barbados leader Mia Mottley. The idea, in a consultation document dated April 2023. It would see the IMF and other MDBs “cut the excessive macro-risk premia on developing countries with $100 bln per year of foreign exchange guarantees” for “just green transition investments”, which one source involved in the plans said could include “green” bonds focused on environmentally friendly projects as a well as others such as ocean-focused “blue” bonds and sustainability-linked bonds.

Image is everything – COP28 president Sultan Al-Jaber has been “accused of attempting to ‘greenwash’ his image”, after it was revealed that members of his team edited his Wikipedia page, according to a Guardian exclusive. Work by Al-Jaber’s team on his and the climate summit’s Wikipedia entries include adding a quote from an editorial that said Al-Jaber – the UAE minister for industry and advanced technology – was “precisely the kind of ally the climate movement needs”. They also suggested that editors remove reference to a multibillion-dollar oil pipeline deal he signed in 2019, the Centre for Climate Reporting and the Guardian reported. Meanwhile, Al-Jaber has been working with major consultancy firms and PR agencies to promote his work as an advocate for Emirati investment in green energy.

Carbon forex – Carbon markets have become a critical policy tool to combat climate change, but their patchwork existence with drastically different prices has lead to a fragmented response from policymakers. In a new paper, a University of Massachusetts Amherst resource economist demonstrates that linking these markets via a ‘carbon exchange rate’ has the potential to be a significant step toward forming a global climate policy. The paper supports denominating the compliance value of an emissions allowance differently in each programme. Using simulation modelling, the authors find that while an exchange rate may reduce emissions abatement in certain schemes, it achieves greater emissions reductions and cost efficiencies overall. One potential downside of linking markets is that each participating jurisdiction would give up a small amount of its sovereignty, though this research finds that an exchange rate would act as a cushion of sorts. “It’s this extra lever that allows policymakers to still retain some of that sovereignty and not force everything to be equal across the linked markets.”

EMEA

Arguing over CBAM – Two senior British ministers are at odds over a potential new green border tax on carbon intensive imports – in a fresh sign of government tensions, Politico reports. Energy secretary Grant Shapps and his department want a carbon border adjustment mechanism (CBAM) as part of Britain’s drive to cut emissions to net-zero, while business and trade secretary Kemi Badenoch is pushing in the other direction, according to people familiar with the discussions. Shapps and chancellor Jeremy Hunt co-announced a consultation on a CBAM in March, with a decision expected later this year. The tax would slap tariffs on overseas imports from places like China and India which are made by producing significant carbon emissions, as the EU has already done in recent legislation.

Keir into gear – The leader of the UK poll-leading Labour party, Keir Starmer, has confirmed that, if it wins the next general election, it will block all new domestic oil and gas developments, instead investing “heavily” in renewable sources including wind and nuclear, the Guardian reports. “[The proposal] will involve not just a ban on new North Sea oil and gas licences, but a pledge that any borrowing for investment should be limited to green schemes…This will not stop drilling on projects that have already been approved, with the exception of the Rosebank and Cambo schemes, which Labour has said previously it would block.”

Fuelling the transition – New cars registered in the first four months of 2023 in Germany are on average emitting significantly more CO2 than those registered in 2022, according to German media via Clean Energy Wire. Data from Germany’s Federal Motor Transport Authority (KBA) showed that the average CO2 value for new German passenger cars registered from January to April was 123.2 grams per kilometre. In contrast, the average for 2022 was only 109.6 grams. The main reason for this is that the share of hybrid and electric cars in new registrations fell from 30 to 20%. This is likely due to the fact government subsidies for these vehicles have been cut.

Backlash polling – Far-right Germany political party Alternative for Germany (AfD) is on the rise and has overtaken the Greens as the third-biggest group in in the nation’s polls, Politico’s ‘poll of poll’s shows. The AfD now polls at 17% percent, up from 9% a year ago, while the Greens have fallen from 23% last summer to 14%. The rise of the far-right party, which is gaining on Chancellor Olaf Scholz’s Social Democrats, which polls at 19%, is attributed to migration, but also to the same reason as the Greens’ decline: a public backlash over costly climate protection policies.

AMERICAS

Pipe dream deal – The US debt ceiling deal that the White House has agreed to in principle includes the approval of the stalled Mountain Valley Pipeline (MVP), scoring a win for West Virginia Senators Joe Manchin and Shelley Capito, Politico reported. Environmental groups have fought for years against construction of the pipeline to deliver gas from West Virginia into the Southeast. The text of the debt bill, which is yet to be approved by both chambers of Congress, grants all outstanding permits for the embattled pipeline, the report noted. The bill also contains efforts to speed permitting via new deadlines for environmental analysis under the National Environmental Policy Act (NEPA). Groups on the left and allied Democratic lawmakers are furious over MVP, and what some activists call weakening of NEPA. The Sierra Club has called for rejection of the deal by Congress, while the Center for Biological Diversity’s Jean said Biden has made a “colossal error” on climate. (Politico, Axios)

Alberta attacks – The United Conservative Party (UCP) won a tightly contested reelection on Monday night to maintain control of power in Alberta, Canada’s biggest emitting province and the centre of its oil industry. Right wing UCP leader Danielle Smith told Albertans she would stand up to Prime Minister Justin Trudeau’s environmental programmes like the oil and gas sector emissions cap and the clean energy regulations. Smith defeated the left of centre New Democrat Party (NDP) headed by one time premier, Rachel Notley by 49 seats to 38. The result is the closest ever in Alberta’s history, with Rachel Notley’s win in 2015 being the last time a result in the Wildrose Province was so close. (Reuters)

Ammonia ahoy – Midstream pipeline firm Pembina Pipeline announced signing a Memorandum of Agreement (MOA) with Japanese conglomerate Marubeni Corporation, in a press release on Tuesday, to develop a low carbon ammonia project on Pembina-owned lands adjacent to its Redwater Complex near Fort Saskatchewan, Alberta. The company has completed initial feasibility studies with an anticipated design capacity of up to 185 kt/yr of low-carbon hydrogen production converted into approximately 1 Mt/yr of low-carbon ammonia, which would be transported via rail to Canada’s West Coast and shipped to Japan and other Asian markets. The facility would also utilise CCUS technology to capture a significant amount of emissions, but the press release did not specify the quantity of CO2 reductions. The companies expect to complete preliminary front-end engineering design of the facility by early 2024.

Mislabelled in Mexico – Mexico’s Energy Regulatory Commission is drawing heat for labelling some co-generating facilities that burn natural gas as clean energy. The country’s climate law has a goal of 35% clean electricity by 2024. Greenpeace and other environmental groups criticised the move, saying not a single megawatt of clean energy will be added to Mexico’s energy matrix under the current plan. (Reuters)

Drumming up a solution – US-based coal miner Drummond Co Inc on Tuesday launched a plan to reduce and offset CO2 emissions from its operations, kicking off in Colombia, by implementing solutions to achieve carbon neutrality by 2050. The plan began with the use of electricity instead of gas for Drummond’s mining operation in Colombia’s Cesar province, in the north of the country, the company said in a press conference in capital Bogota. The company – Colombia’s largest producer of thermal coal – has three mining contracts in the country for the mines of La Loma, Descanso Sur, and El Corozo. It also holds a port concession in Magdalena province, located on the Caribbean coast. Drummond’s Colombia CEO Jose Miguel Linares said the company’s emissions are 1.9 Mt. (Reuters)

ASIA PACIFIC

Big talk – India’s state-controlled Oil & Natural Gas Corporation (ONGC) is planning to invest $12.09 bln by 2030 on energy transition projects, aimed at achieving net zero carbon emissions by 2038, chief executive Arun Kumar Singh said. The firm is now confident that we can achieve net zero for Scopes 1-2 emissions by 2038, Singh told the local media on Monday. ONGC is aiming to increase electricity generation from renewable resources to 1 GW by the end of this decade, significantly higher than its current 189 MW. The Indian firm is also exploring opportunities in the offshore wind farm sector, but did not further reveal which projects are being targeted. ONGC also aims to set up a 1 Mt per annum green ammonia plant at Mangalore. (Upstream)

Here comes the sun — Singapore company SunGreenH2 is testing the Australian market for talent for green hydrogen technology with a new manufacturing and R&D base in Melbourne’s high-tech industrial heartland of Clayton, RenewEconomy reports. The start up is developing nanotechnology to improve efficiency and lower the cost of electrolyser parts and intends to hire 30 people for a hardware manufacturing facility that will include R&D into on-site green hydrogen production. SunGreenH2 co-founder and CEO Tulika Raj said in a statement the new base in Melbourne positions the company to hire top talent and tap into Victoria’s manufacturing ecosystem. The company is not seeking an exclusive relationship with Melbourne, however, trialling its electrodes with Chilean company Molymet, according to Bloomberg news. The  startup launched in 2020 in the middle of the pandemic and raised $2 mln in seed funding last year, the same year it completed a prototype. It plans to test its first commercial electrolyser with Naturgy Innovahub in Spain, as it looks for other partners in Australia and Singapore in 2023 to do the same.

Coming soon – The board of Taiwan’s main bourse (TWSE) has approved a plan to set up a carbon exchange with the National Development Fund by the end of July at the earliest, with a planned capital of NT$1.5 bln ($48.97 mln), according to Central News Agency. The head office of the new exchange will be based in Kaohsiung, southern Taiwan’s largest city, and the trading centre will be located in Taipei, TWSE said. While the timeline update is in line with a proposal announced last month, trading of international and domestic carbon credits will not be allowed until relevant rules are published by the island’s environment regulator.

Embrace the wind – Japan’s wind power body has set a mid-century goal to largely increase capacity to 140 GW from less than 5 GW now to meet a third of the country’s electricity demand, Reuters reports. Japan Wind Power Association (JWPA) aims to install 40 GW of onshore wind farms, 40 GW of bottom-fixed offshore wind farms and 60 GW of floating offshore, it said. Offshore wind is considered central to the country’s expansion of renewable energy, though progress has been delayed, according to Reuters.

Plan B  – Taiwan is considering keeping mothballed nuclear facilities on standby in case of emergencies, signalling a loosening of climate policy to phase out the energy source, Bloomberg and United Daily News reports, citing Vice President Lai Ching-te, the ruling Democratic Progressive Party’s presidential candidate. When the current Tsai administration came to power in 2016, the government began gradually moving Taiwan away from nuclear energy and planning to phase out the island’s last remaining atomic plant by 2025. The hotly contested decision is back in the spotlight, given growing domestic concerns over energy security.

Crackdown on fraud – China’s environment ministry (MEE) said on Monday that the government will continue to crack down on companies involved in falsifying environmental impact assessment (EIA) reports, according to a press release by the Ministry of Ecology and Environment (MEE). A recent case found in Shandong, where four defendants were sentenced to imprisonment and confiscation of the illegal proceeds from fake EIA reports, indicates a major breakthrough in the judicial practice of criminalising EIA frauds, spokesman Liu Youbin said at a press conference. 

Focus on Pakistan – As part of a series on how key emitters are responding to climate change, Carbon Brief explains the causes of Pakistan’s deep-rooted energy crisis and how catastrophic floods fuelled its call for loss-and-damage finance at UN climate talks.

VOLUNTARY

HFC methodology – The Yale Carbon Containment Lab has published a draft methodology for recovery and destruction of hydrofluorocarbons in ‘Article 5’ countries, so-called due to their status in the UN’s Montreal Protocol, where air conditioning usage is growing fastest but super-polluting refrigerant usage is decreasing slowest. The lab says voluntary carbon markets can provide the capital necessary to finance proper refrigerant management, but there is no internationally eligible standard or methodology for the recovery and destruction of HFCs.

Ed of the class – Edmond de Rothschild Asset Management (EdRAM) has joined the Net Zero Asset Managers initiative (NZAM), Citywire reports. This comes after the asset manager joined the Institutional Investors Group on Climate Change (IIGCC) a few weeks ago, furthering its commitment towards the energy and environment transition. The NZAM is made up of about 300 signatories representing in the region of €60 trillion in AUM and is designed to mobilise action by the industry to drive the transition to net zero. An EdRAM spokesperson said that the firm expects this move to strengthen its work in partnership with asset owner clients on decarbonisation goals, consistent with an ambition to reach net zero emissions by 2050 or sooner across all AUM within its scope. Additionally, the firm confirmed it is working on disclosing key targets and metrics within a 12-month period, which include an initial percentage of its portfolio and interim targets for AUM that will be managed in line with the net zero initiative.

AND FINALLY…

FACE the music – In the depths of the Amazon, Brazil is building an otherworldly structure – a complex of towers arrayed in six rings, poised to spray mists of CO2 into the rainforest. But the reason is utterly terrestrial: to understand how the world’s largest tropical forest responds to climate change. Dubbed AmazonFACE, the project will probe the forest’s remarkable ability to CO2, helping scientists understand whether the region has a tipping point that could throw it into a state of irreversible decline. Such a feared event, also known as the Amazon forest dieback, would transform the world’s most biodiverse forest into a drier savannah-like landscape. FACE stands for Free Air CO2 Enrichment. This technology first developed by Brookhaven National Laboratory has the ability to modify the surrounding environment of growing plants in a way that replicates future levels of atmospheric CO2 concentrations. (AP)

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