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TOP STORY

Aiming for $100/t direct air capture credits “not a realistic goal”, says expert

Targeting $100/tonne costs for direct air capture (DAC) by mid-century does not represent a realistic or credible goal, a senior carbon capture expert told a conference Tuesday, adding that it may be more valuable for developers to outline 2030 price and volume goals and then evaluate how best to proceed.

AMERICAS

PREVIEW: Traders express broad consensus for RGGI Q2 auction to clear above $13 with pick-up in speculative interest

RGGI market participants consistently agreed that the June auction will clear above $13 despite a pre-auction slide in allowance values in the secondary market, given the narrow range that prices had moved through since the March sale and a build-up of supportive speculative interest.

Major questions doctrine threatens US EPA proposal to regulate power plant emissions, opponents claim

The US EPA plan for power plants to cut CO2 output through technologies like hydrogen or carbon capture runs afoul of a US Supreme Court decision last year, a Republican congressperson and industry lawyer argued during a Congressional hearing on Tuesday.

Xpansiv introduces tradable certificate for voluntary LCFS programme

ESG marketplace Xpansiv on Tuesday launched a renewable fuel certificate that ethanol producers can generate under a new voluntary low-carbon fuel standard (LCFS) programme modelled after California’s scheme.

VOLUNTARY

Bio-oil project developer collects $100 mln to accelerate carbon removal deliveries

A California-based startup on Tuesday announced a $100 mln fundraise that it will utilise to speed up deliveries of carbon removals from bio-oil sequestration.

BeZero expands into primary VCM by rating carbon credits before they are issued

Carbon credit rating service BeZero is introducing scores for yet-to-be-issued units in an effort to cater for companies looking to manage risk in the primary voluntary carbon market (VCM).

Voluntary carbon firm Nori replaces CEO, raises another $6.25 mln from investors

Voluntary carbon market firm Nori has replaced its CEO, it announced Tuesday, also revealing that it has raised an additional $6.25 million in funding two months after laying off 40% of its staff.

Carbon mineralisation firm attracts $3.3 mln for pilot injection site

A New York-based startup has netted $3.3 mln to demonstrate the company’s carbon mineralisation technology in Africa, having already pre-sold credits to a removals buyers’ club.

Swiss climate venture launches “biggest biochar project in Mexico”

A Switzerland-based climate solutions investor announced the launch of a biochar company to generate carbon dioxide removal (CDR) credits from an industrial-scale biochar facility in Mexico, according to a press release on Tuesday.

Former Meta CTO advancing research into increasing ocean CO2 absorption

Tech giant Meta’s former CTO is launching a new initiative aimed at advancing research into increasing the amount of CO2 the ocean can absorb.

CDR accelerator selects 20 more startups to join programme

A startup accelerator for innovative carbon dioxide removal (CDR) technologies has announced its fourth cohort, shortlisting 20 firms to join the programme.

EMEA

FEATURE: The EU’s global search for critical minerals could start close to home

The EU has been touting South America as a solution to its lithium supply problem, despite the presence of a mine on its doorstep that could supply up to 90% of its needs for the raw material deemed essential for the energy transition while also spurring changes to the bloc’s climate policy outreach.

Euro Markets: EUAs drift lower after weak auction as energy markets give up Monday’s big gains

EUAs dropped on Tuesday after an unusually weak auction triggered a sell-off, encouraging some short term profit taking before prices consolidated ahead of Wednesday’s weekly Commitment of Traders report, while energy markets gave up most of Monday’s sharp gains.

New partnership plans to accelerate soil carbon activity in European farming

A startup investment company and a specialist analysis firm have teamed up to launch a huge soil carbon project in Lithuania that plans to test new stratification methods and measure thousands of hectares of land to accelerate activity across Europe.

Swiss bank’s AM arm, system change experts launch a sustainable investment platform

The asset management arm of a Swiss bank has partnered with system transformation analysis firm to launch a dedicated sustainable investment platform.

INTERNATIONAL

China may take further action against CBAM after upcoming WTO discussions -analysts

China’s next step against a planned carbon border tax may hinge on discussions under the World Trade Organization (WTO) scheduled for this month, where the EU will have to defend the measure’s legality, according to analysts.

ASIA PACIFIC

Australian environment group seeks judicial review of govt’s approval assessment of two coal mines

An environmental group has taken the Australian federal government to court to seek a judicial review over the assessment of two coal mines in New South Wales, the group announced.

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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

COPaganda – Fake social media profiles have been spreading propaganda messages about COP28 and attacking criticism of its host, the United Arab Emirates (UAE), in what experts called an “organised” campaign. Purporting to be genuine people based in the UAE, scores of individual Twitter accounts have published similar positive content and defended the UAE in replies to posts by campaigners or journalists. At least a hundred profiles engaged in such behaviour have been identified by Marc Owen Jones, a digital disinformation expert at the Hamad bin Khalifa University in Qatar. Twitter suspended a handful of those accounts after Jones publicly exposed them last week. But many others remain active having now transitioned to different personas overnight. Climate Home News independently analysed the activities of some of the most active profiles. They were all created in Feb. 2022, using fake profile pictures and unlikely biographies, and display a suspicious pattern of activities. When taken together, they appear to be engaged in an orchestrated attempt to promote the UAE.

A case of the hicCOPs – Conflicts between Russia and Ukraine and Armenia and Azerbaijan have delayed the group of Eastern European nations from picking the host of the COP29 climate talks, due to take place in Nov. 2024. At a group meeting in Bonn on Tuesday, on the sidelines of UN intersessional climate talks, Bulgaria, Azerbaijan, and Armenia each made the case for why they should host the annual climate summit, which rotates annually between the UN’s five regions. But two sources with knowledge of the meeting told Climate Home that the group could not come to a decision and postponed the matter to a later date. Bulgaria’s bid is backed by the Eastern European members of the EU. Russia’s representative reportedly said twice that Moscow would block any candidate from the EU. The EU is providing diplomatic, financial, and military support to the government of Ukraine in its battle to remove the Russian military from the country. The Eastern EU’s backing of Bulgaria also suggests that Czechia is no longer a candidate after it put itself forward at COP27.  The two other COP29 candidates – Azerbaijan and Armenia – fought a six-week war against each other in 2020 over the disputed territory of Nagorno-Karabakh, with tensions between the two sides still high.

Double 0’s on 7 – A new report by the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the UN Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO), released today, finds that the world is not on track to achieve the Sustainable Development Goal (SDG) 7 for energy by 2030. This year marks the halfway point for achieving SDGs by 2030. SDG 7 is to ensure access to affordable, reliable, sustainable and modern energy. The goal includes reaching universal access to electricity and clean cooking, doubling historic levels of efficiency improvements, and substantially increasing the share of renewables in the global energy mix. Attaining this goal will have a deep impact on people’s health and well-being, helping to protect them from environmental and social risks such as air pollution, and expanding access to primary health care and services. The 2023 edition of Tracking SDG 7: The Energy Progress Report warns that current efforts are not enough to achieve the SDG 7 on time. There has been some progress on specific elements of the SDG 7 agenda – for example, the increased rate of using renewables in the power sector – but progress is insufficient to reach the targets set forth in the SDGs.

AVIATION

Airline action – Airlines on Tuesday called for co-operation on a broad front to reach “very tough” emission targets and pledged at the end of a three-day summit to release interim climate targets next year. The International Air Transport Association (IATA), grouping 300 airlines and representing about 80% of global traffic, said governments, planemakers, and regulators must all play a part in helping aviation reach a target of net zero emissions by 2050. IATA’s annual meeting in Istanbul also brought stark evidence of a consumer recovery as multiple airlines voiced interest in ordering new jets to lock in scarce production slots and meet higher-than-expected demand with modern fleets. (Reuters)

PR exercise – The CEO of Qatar Airways has described the airline industry’s emissions goals as a “PR exercise”, saying aviation is on track to miss its target to achieve net zero status in 2050. Akbar Al Baker was speaking to CNN at IATA’s annual meeting, on the day the group announced a roadmap to reach net zero carbon emissions by 2050. “Let us not fool ourselves,” Al Baker told CNN’s Richard Quest. “We will not even reach the targets we have for 2030, I assure you. Because there is not enough raw material to get the volumes of SAF [sustainable aviation fuel].” IATA has pledged to boost the use of SAF by 2030, with a goal of becoming net zero in 2050. However, Al Baker insists the industry’s targets are unrealistic, given the current volumes of SAF being produced, and says the airline industry is in denial about the rate of progress. Separately, consulting firm Bain & Company also questions commercial aviation’s ability to reach net zero by 2050, Flight Global reports. It estimates that better engines, improved aircraft efficiency, and the use of SAF will help airlines reduce “up to 70%” of emissions by 2050, according to a new brief.

Happy flyers – Meanwhile, IATA and the Airline Tariff Publishing Company (ATPCO) are joining forces to help consumers better understand the carbon cost of their flights. ATPCO will incorporate IATA’s CO2 Connect data into its Routehappy API offering, they announced Tuesday. The API currently helps airlines and sales channels convey on-board experience amenities like seat pitch and type, Wi-Fi, power, entertainment, etc., to consumers during the booking process. The partnership aims to add a new amenity that communicates the carbon footprint of various itinerary options. Multiple studies have indicated a consumer interest in access to emissions data, influences purchasing decisions. IATA’s CO2 Connect offers airline-specific emissions data, drawing from actual fuel burn information and load factors, distinguishing it from theoretical data models.

EMEA

Accounting for war – The war in Ukraine is deepening the climate crisis at time when global GHG emissions are already running at a record high, according to report by carbon accounting experts who have tallied the overall impact of the conflict. The report seen by Reuters calculates that the first 12 months of the war will trigger a net increase of 120 MtCO2e, equivalent to the annual output of country such as Belgium. A group of researchers led by Dutch former JI carbon market expert Lennard de Klerk looked at a range of contributors to emissions, from fuel used by vehicles, to forest fires, to changes in energy use in Europe and the future reconstruction of buildings and infrastructure. Almost half of the net increase in emissions are linked to the anticipated reconstruction of buildings, roads and factories damaged in the fighting while about 19% come from military activities. It also concluded that the fall in emissions in Europe from lower flows of Russian gas and a drop in electricity usage due to higher energy costs had almost all been offset by increases in the use of oil, coal and LNG.

Top performer – Portugal has reduced emissions by 35% since 2005, ahead of all other EU countries, according to official figures. The data shows that, since 2005, Portugal has reduced its GHGs by 35% – far more than the EU average of 24%. However, the study also shows a great dependence on fossil energy and that the country is experiencing rising temperatures, and waste volume. (Euractiv)

Half life – The UK’s much-delayed Hinkley C nuclear plant looks likely to be further pushed back as would-be operator EDF said there is an increasing risk of a 2028 start. The plant was given the green light seven years ago and persistent setbacks are said to have brought the project to at least a £25 bln cosy level, up from initial estimates of £18 bln. Taking into account inflation, the plant could cost well over £30 bln, EDF has said. (The Times)

Long wait – The year is 6723, and there are finally enough onshore wind farms in England to support the UK’s 2050 net zero target. At least that’s how long it would take at the current pace of construction, according to a report from the Institute for Public Policy Research, a London-based think-tank. It’s an extreme example of how planning rules can slow renewable power development to an extent that could make climate targets impossible to reach. The current planning system in England is not remotely fit for purpose to build a net zero world, said Luke Murphy, IPPR associate director for energy, climate, housing, and infrastructure. “At current build rates, we’re as far from delivering the onshore wind we need for energy security as we are from the start of construction of Stonehenge in 2,500 BC.” The multiple-millennia timeline is a result of policy under Britain’s ruling Conservative Party that effectively bans new onshore wind farms by making it extremely difficult to get new projects approved, according to the researcher. Before a rule change in 2015, England was building about 180 MW of new onshore wind capacity every year, IPPR said in its report. After the amendment, that dropped to about 1 MW per year and only 17 small wind farms getting planning permission since then — about 0.02% of National Grid’s target for onshore wind by 2030. (Bloomberg)

GB Energy – Sir Keir Starmer, leader of the UK Labour party, will take a leaf out of the green incentives created by the Biden administration if the party, which is riding high in the opinion polls, is elected. “Our Green Prosperity Plan, like President Biden’s Inflation Reduction Act, is our plan for growth, and because we are Labour it is a plan for working people, their jobs and their prosperity,” he told the GMB union’s conference on Tuesday. The key plank will be the creation of a state-owned clean energy company, GB Energy, which the Labour party outlined last year. Under Labour, the government would provide seed capital for the company from the £8 bln announced for a National Wealth Fund. The long-term ambition is for GB Energy to be profitable, and even generate enough energy to make profits through exports. At last year’s Labour conference, Sir Keir said he would make the UK the first major economy in the world to generate all of its electricity without using fossil fuels. An emergency back-up capacity of 0.7% of fossil fuel electricity production would be kept on standby. GB Energy will save UK household £93 bln, the party estimates, which includes doubling onshore wind, trebling solar power, quadrupling offshore wind,  and investing in tidal power, nuclear, and hydrogen power.

Survey says – According to a Eurobarometer survey released by the European Parliament on Tuesday, European citizens’ awareness of the upcoming European elections is growing. Interest in the next European elections due in mid-2024 is at 56% among citizens, six percentage points higher than one year before the last European elections. Two-thirds of citizens (67%) say they are likely to vote, when 58% said so in 2018. 71% of Europeans say that EU actions have an impact on their daily lives. Regarding climate legislation, the EU Green deal is among the three topics most discussed or heard about in 20 countries. The key climate-related findings of the survey were the following:

• When asked what the top priority should be, 31% of respondents put action against climate change. This came third on the list with the fight against poverty and social exclusion topping the ranking, followed by public health.
• The EU Green deal is amongst the highest ranked topics in 20 countries, , with respondents in Finland (75%), Sweden (71%) and the Netherlands (69%) the most likely to mention this. At the other end of the spectrum, respondents in Portugal (18%), Romania (23%) and Croatia (24%) are the least likely to have read, seen or heard about the EU Green Deal.
• More than four in ten (47%) are satisfied with the action of the EU when it comes to the EU Green Deal, including one in ten who say they are ‘very satisfied’. A minority (43%) say they are unsatisfied, with 12% saying they are ‘not at all satisfied’.
• Majorities of respondents in 18 countries are satisfied with the EU Green Deal, with levels of satisfaction being the highest in Ireland, Poland (both 69%) and Hungary (63%). On the flip side, 28% in Czechia, 31% in France and 36% in Estonia say they are satisfied with what the EU has been doing in this area.
• When asked which key policy area that the EU has been focused on respondents were most satisfied with however, support for Ukraine came out at the top in terms of satisfaction rate, and the EU Green Deal ranked 7th out of the 8 key areas listed.

Latam love-in – The EU will prioritise concluding a long-delayed trade deal with South America’s Mercosur bloc and closer institutional cooperation as it seeks new allies to reduce economic dependencies on China and counter Russia, according to a leaked draft proposal, seen by EurActiv. The paper calls for more regular summits, progress on outstanding trade deals and more investment through the EU’s Global Gateway foreign investment strategy. It is due to be presented by the EU’s chief diplomat Josep Borrell on Wednesday, who is keen to secure access to Latin America’s raw materials deemed critical for the EU’s green energy transition.

AMERICAS

Correction – Brazil’s President Luiz Inacio Lula da Silva has pledged to correct the country’s Nationally Determined Contribution (NDC) under the Paris Agreement, resuming commitments made in 2015. The government needs to present a more ambitious NDC with targets expressed in absolute numbers, lower than 1.30 bln tonnes CO2e for 2025 and 1.20 bln for 2030, Politica por Inteiro reports.  As the host of COP30, Brazil has a limited time to review and meet these mitigation targets. The Talanoa Institute has suggested that the government should conduct public consultation to make the NDC more transparent and ambitious and develop an implementation plan. Lula also updated the Interministerial Committee on Climate Change for planning the NDC review. The government has until Sep. 29 to submit an updated NDC for inclusion in the UNFCCC Secretariat’s NDC synthesis report for COP28. Lula has also unveiled how Brazil plans to meet a pledge to eliminate deforestation in the Amazon by 2030, reports Reuters, using “strengthened law enforcement against environmental crimes and other measures in the world’s largest tropical rainforest”. Under former right-wing president Jair Bolsonaro, Brazil joined a 2021 pact with more than 140 countries to end deforestation globally by 2030. Lula, who assumed office on Jan. 1, has made it a centrepiece of his environmental policy. The Action Plan for the Prevention and Control of Deforestation in the Amazon (PPCDAm) sets a coordinated policy across more than a dozen ministries through the end of Lula’s term in 2027. It calls for boosted use of intelligence and satellite imagery to track criminal activity, regularisation of land titles and use of a rural registry to monitor correct management of forests considered vital for slowing global climate change.

Hydrogen roadmap – The US Department of Energy (DOE) released its National Clean Hydrogen Strategy and Roadmap on Tuesday, aiming for about 10 Mt/yr of low-carbon hydrogen by 2030, with annual volumes doubling by 2040 before reaching 50 Mt by 2050, E&E News reported. Federal agencies would prioritise hard-to-decarbonise sectors — such as heavy industry, aviation, steelmaking, chemical production, ships, and medium- and heavy-duty vehicles — as consumers of low-carbon hydrogen, according to the document. Additionally, hydrogen co-firing, or mixing the fuel into natural gas at power plants also received clearer and more prominent backing compared to the DOE’s draft version from earlier last year. The agency plans to bring down the cost of clean hydrogen to $1/kg by 2031. The first awards for DOE’s hydrogen hubs programme funded with $8 bln from the infrastructure law are expected in the fall, the report said. Refineries, transit buses and long-haul truck operators, ammonia producers, and operators of forklifts and heavy machinery could switch to hydrogen in the first wave of the plan. Power plants, medium-duty trucks, steel producers, and airlines could join the second wave, followed by cement makers, container ships, and methanol producers in the third, the DOE said.

NOAA way – The US National Oceanic and Atmospheric Administration (NOAA) has released a report outlining its carbon dioxide removal strategy, which examines 11 CO2 removal techniques and their potential strengths and weaknesses. NOAA plans to utilise its resources to analyse the impact, feasibility, and effectiveness of these techniques, providing valuable data for governments, companies, and non-profits in the CDR industry. NOAA’s Ocean Acidification Program, acting on behalf of the National Oceanographic and Partnership Program, has announced a $24 mln funding opportunity for marine CO2 removal proposals. The strategy will be presented in detail during a free virtual panel at Capitol Hill Ocean Week on June 7. (Carbon Herald)

CBAM groundwork – US Senators Kevin Cramer (R) and Chris Coons (D) plan to introduce a bill soon that would help lay the groundwork for carbon border adjustment mechanism. The bill would focus on federal data on carbon emissions from various types of industrial products. Cramer and other Senate Republicans are interested in a fee on carbon-intensive imports without a matching domestic price, which makes the policy design more complicated because it requires precise measurements of the emissions from specific goods or sectors, both in the US and in other countries. Sen. Bill Cassidy is planning a CBAM bill that will be the GOP marker, but Cramer’s legislation is a low-stakes effort that could help get more Republicans interested in the concept. Cramer said he hopes to get it attached to an appropriations bill or other must-pass legislation, but the Senate’s CBAM contingent remains small, and there is relatively little interest among the House Republican majority. (Axios)

e-RINs in the e-bin – US President Joe Biden’s administration will abandon a scheme to include the electric vehicle industry in the nation’s biofuel blending programme and will remove nearly 2 bln credits the ambitious expansion was expected to generate in a final rule set to be released later this month, three sources familiar with the matter told Reuters. The EPA offered the ‘e-RIN’ pathway for renewable electricity supplied to EVs as part of the preliminary 2023-25 Renewable Fuel Standard (RFS) quotas published in December, which would be categorised as D3 credits under the programme. However, Reuters reported last month the EPA was considering a delay for e-RINs amid push back from Congressional Republicans.

Quebec collects – Community scale offset retailer, WILL Solutions, announced the firm had distributed C$2.1 mln ($1.6 mln) to Quebec small-and-medium sized enterprises, which are members of the company’s sustainability initiative, according to a Tuesday press release. The businesses receive 40% of the voluntary carbon market credit sales from their reduction in industrial emissions, developed and marketed by WILL Solutions on their behalf. The compensation covers the entire year of offsets and is 152% higher than last year, the press release said. Since 2015, WILL Solutions has given C$3.8 mln to businesses in the Quebec Sustainable Community for their GHG reductions.

ASIA PACIFIC

Cash boost — Australian state-owned energy company CleanCo is to receive an extra A$500 mln ($333 mln) in funds from the Queensland state government as a down payment to help develop up to 2.3 GW of new large scale wind and solar capacity, RenewEconomy reports. It comes as Queensland aims to legislate its renewable energy targets of 80% by 2035, and is part of the state’s newly declared intention to maintain a majority share in energy generation. The 2.3 GW of new generation will be concentrated in the central part of the state, which is currently home to much of the state’s heavy industry and fossil fuel exports. CleanCo chief executive Tom Metcalfe said central Queensland is the state’s industrial powerhouse and it needs reliable, affordable, clean energy solutions to drive future prosperity and industry development. It is understood that CleanCo will have the opportunity to take up to 100% equity ownership of the chosen projects when they get to financial close, although the scale of that is yet to be determined.

Hydrogen investment – The Japanese government has decided on a plan to generate public- and private-sector investment in the supply of hydrogen worth 15 trillion yen ($107 bln) over the next 15 years to speed up decarbonisation, Japan Times reports. The country, aiming for net zero greenhouse gas emissions by 2050, also plans to increase its hydrogen supply sixfold to around 12 mln tonnes by 2040 from the current level of 2 mln tonnes.

We might get there early – Indonesia could hit its net zero targets by 2055, five years ahead of schedule, as the country pivots away from coal power and ramps up green investments, according to a government official. “We can do it earlier than 2060,” Coordinating Investment and Maritime Affairs Minister Luhut Binsar Panjaitan told media at the Ecosperity conference in Singapore on Tuesday, Bloomberg reported. Collaboration with overseas governments will be key to achieving the goal early, he added. Indonesia, the world’s eighth-biggest CO2 emitter, had previously announced plans to hit net zero emissions by 2060. The country is ready to transition to a cleaner economy, but does not want to be “lectured” by developed countries or to interrupt economic growth, Panjaitan said. The country plans to support its transition by becoming a hub for carbon capture and storage technologies and by developing its fledgling carbon market, which could contribute up to $32 bln to fund the energy transition, he added. Other opportunities include producing green fuel from palm plantations, and turning Indonesia into an electric vehicle production hub.

VOLUNTARY

Okee Ogoki – Indigenous-led natural asset development company Big Tree Carbon on Tuesday announced the company has retained the professional services of consultancy R&B Cormier to conduct and deliver a forest carbon sequestration assessment of the Ogoki Forest management unit in Ontario. Big Tree has partnered with Agoke Development to bring upwards of 974,000 ha of potential carbon offsetting to market in a larger 1.03 mln ha forest. R&B Cormier will prepare and deliver an assessment of carbon sequestration potential of the Ogoki Forest management unit for purposes of generating carbon offsets in both compliance and voluntary market scenarios.

SCIENCE & TECH

The uninsurables – State Farm, the leading home insurance company in California, has ceased accepting new homeowner insurance applications in the state due to increasing construction costs and the growing risk of extreme weather events such as wildfires, Axios reports. This decision follows the American International Group’s move last year to withdraw policies in California over wildfire risk concerns. Insurance Commissioner Ricardo Lara has introduced pricing regulations to protect homeowners, including a one-year ban on cancelling or not renewing home insurance in certain fire-affected counties. State Farm’s decision underscores the challenges insurers face due to climate change, which is contributing to more frequent and severe extreme weather events, elevating the risk of wildfires and major hurricanes.

Drier and dire – A group of researchers at the State University of Campinas in Brazil has developed an algorithm that projects the future of vegetation in the Amazon, presenting scenarios for transformation of the forest driven by climate change. One of the results shows that a drier climate in the region, with a 50% drop in precipitation, could increase diversity but lower the level of carbon storage. Storage of CO2 in roots would increase, but absorption of CO2 in leaves, stems, and trunks, which have more storage capacity, would decrease. Taking different situations into account, the scientists calculate that carbon absorption could drop between 57.48% and 57.75% compared with regular climate conditions. The algorithm, which is the first of its kind designed exclusively for Brazil, is called CAETE, which means “virgin forest” in Tupi-Guarani and is an acronym of Carbon and Ecosystem functional Trait Evaluation model. (Mirage.News)

AND FINALLY…

Painful route canal – The Panama Canal, which links the Atlantic Ocean with the Pacific and plays a pivotal role in global shipping, is facing threats from climate change. The canal requires large volumes of freshwater to operate its locks, but decreasing rainfall in Central America due to climate change is resulting in less water availability for the canal. The consulting firm Everstream estimates that about 200 mln litres of water are needed for every ship’s passage through the canal. As water levels fall, the Panama Canal Authority has issued strict draft restrictions limiting the depth that ships can sit in the water. This has compelled international shipping companies, including Germany’s Hapag-Lloyd, to load fewer containers to reduce their ships’ drafts. To offset the income loss, Hapag-Lloyd will apply a surcharge of $500 per container passing through the Panama Canal starting in June. However, Vincent Stamer, an economist from the Kiel Institute for the World Economy, downplayed the potential impact on global trade, stating that the situation would not be as critical as the 2021 Suez Canal blockage and pointed out the resilience of ocean-based trade routes. (DW)

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