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TOP STORIES

Virginia regulatory board endorses Governor Youngkin’s RGGI repeal executive action

A Virginia regulatory board on Wednesday voted to rescind the state’s RGGI-linked cap-and-trade regulation after considering the legal implications of doing so during an unprecedented closed-door session of a public meeting, with the final repeal headed to Governor Glenn Youngkin’s (R) desk for review amid the spectre of probable lawsuits in the coming months.

Washington Q2 carbon auction clears above Tier 1 reserve price, first advance sale settles far below

The second current vintage auction of Washington state’s WCI-modelled cap-and-trade programme sold all allowances above the scheme’s lower reserve tier trigger price, though the first advance sale settled well below that, according to results published Wednesday.

VOLUNTARY

Kenya county governor revokes ‘opaque’ carbon offset deals, local media reports

The governor of Kenya’s Kajiado has ripped up all carbon offset deals signed with projects in the county on grounds they were too opaque for local communities, local media reported, in another signal of growing government intervention in the global voluntary market.

PNG community takes project developer to court to nullify the sale of 1.3 mln credits

Landholders in PNG have lodged a claim in the country’s National Court to revoke the sale of 1.3 million Verra-issued carbon credits they argue were illegally sold by controversial REDD+ project developer New Ireland Hardwood Timber (NIHT).

Brazil’s Amazonas seeks REDD+ applications from conservation units, Tocantins sets timeline for certifying jurisdictional credits

Brazil’s Amazonas state has called on public conservation units to submit applications to create carbon credits from avoided deforestation projects, while Tocantins state formalised its previously-announced deal with commodity trader Mercuria to certify hundreds of millions of jurisdictional REDD+ units.

Climate Impact X launches spot carbon trading platform

Singapore-based carbon Climate Impact X (CIX) on Thursday launched its planned spot trading platform for voluntary carbon credits, CIX Exchange.

EMEA

INTERVIEW: Low-cost carbon removals from fermentation industries are bubbling up in Europe

(Free to read) – Advocates are eyeing the prospective for carbon dioxide removals (CDR) stemming from fermentation industries to contribute to EU climate targets, with one large biorefinery noting its potential to generate 500,000 CDR credits annually.

Euro Markets: EUAs leap after data shows funds nearly doubled bearish bets last week, energy rallies

European carbon prices jumped on Wednesday afternoon after the publication of weekly holdings data that showed a record build in speculative short positioning, while energy prices rallied on the back of carbon’s sharp gains.

Renewables overtake fossil generation in May as EU sees record month -report

Wind and solar combined produced more electricity than fossil fuels in May across in the EU for the first time, a new report has revealed.

EU ETS cut emissions not employment in early years -study

The EU’s flagship emissions trading scheme (ETS) led to a reduction of carbon emissions of around 10% between 2005-12 with no adverse impact on employment, according to a recent study.

UAE sets up alliance to drive carbon market engagement

The UAE on Wednesday launched an alliance to advance carbon market involvement as a means of supporting the nation’s transition to a green economy, with a voluntary carbon market (VCM) exchange named as a founding member.

UK bans ‘misleading’ climate ads as corporate scrutiny tightens

Regulators and courts are growing increasingly vigilant in clamping down on misleading corporate claims, with three oil firms banned on Wednesday from running ‘greenwashing’ advertisements in the UK while a Dutch court said it will hear a case against claims made by airline KLM,

ASIA PACIFIC

China again includes ETS regulations in annual legislative work plan

Trading regulations for China’s national emissions trading scheme (ETS) have been included in the State Council’s 2023 legislative work plan, as the government’s latest effort to ground the rules in law despite previous fruitless attempts.

Japan’s SBI to open carbon exchange in fall -media

Japanese financial conglomerate SBI Holdings has teamed up with a climate tech startup to set up a carbon exchange in the Asian nation that will become operational this fall, Nikkei reported Wednesday.

Maori forestry group fails to stop NZ ETS review document being released in High Court action

A Maori trade group’s has failed in an urgent High Court bid to stop the government releasing a consultation document on the review of New Zealand’s ETS they say will have detrimental impacts to Maori foresters.

Australia’s Macquarie Group called out over oil and gas investments -report

A new report has called out Australia’s fifth-largest bank for continuing to invest in oil and gas companies, despite committing to align its investment portfolios with a 1.5 C temperature pathway.

INTERNATIONAL

COP28 hosts UAE back EU push for global clean energy goals to bolster move away from fossil fuels

COP28 UN climate talks host UAE on Wednesday backed an EU-led effort to set near-term global clean energy goals, taking a further step to bolster efforts to wean the world off fossil fuels despite the Gulf state’s reluctance to explicitly call for an end to oil and gas use.

Energy efficiency to hit record level in 2023 but investments need to double by 2030 -IEA

Global energy efficiency efforts are set to hit record highs in 2023, according to a special report from the International Energy Agency, but investments must double to $1.8 trillion by 2030 to align with a trajectory toward net-zero emissions by mid-century.

AMERICAS

Alberta TIER credit prices stagnate in May ahead of compliance deadline

Spot carbon credit prices under Alberta’s Technology Innovation and Emissions Reduction (TIER) regime inched down in May as the programme’s annual true-up neared, with newer vintage credits attracting a slight premium, according to a report published Wednesday.

AVIATION

‘Carbon-to-value’ SAF startup raises £18 mln from investors

A London-based ‘carbon-to-value’ startup that transforms CO2 and hydrogen into industrial and consumer products, including sustainable aviation fuel (SAF), has raised £18 million in Series A funding.

BIODIVERSITY (FREE TO READ)

Brazilian group publishes crediting methodology for jaguar protection

A Brazilian company has released a methodology and guidelines for issuing biodiversity stewardship tokens to projects that successfully protect and restore habitats for jaguars.

Researchers highlight “blind spot” in draft TNFD nature disclosure guidance

Researchers have pointed to what they regard as a significant omission in the draft Taskforce on Nature-related Financial Disclosures (TNFD) framework relating to extinction risk which they have raised with the body as part of submitted formal feedback.

UK pension funds slow to move on natural capital, biodiversity

Almost two-thirds of UK asset owners have yet to make any natural capital investments, with lack of knowledge cited as one of several barriers to progress in research conducted by advisory firm and asset manager member network Pensions for Purpose.

Canadian miner hands C$10 mln to Chilean Nature Fund for MPAs

Canadian mining firm Teck Resources has donated C$10 million ($7.5 mln) to the Chilean Nature Fund (FNC), with the funds to go towards its work with the South American country’s marine protected areas (MPAs).

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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

State secrets – The UAE’s state oil company has been able to read emails to and from the COP28 climate summit office and was consulted on how to respond to a media inquiry, the Guardian reports. The UAE is hosting the UN climate summit in November and the president of COP28 is Sultan Al-Jaber, who is also chief executive of the Abu Dhabi National Oil Company. The revelations have been called “explosive” and a “scandal” by lawmakers as the COP28 office had claimed its email system was separate from that of the company, but expert technical analysis showed the office shared email servers with the firm. After the Guardian’s inquiries, the COP28 office switched to a different server at the start of this week, the newspaper claimed. Separately, Politico reports that the UAE government has spent tens of millions of dollars on US lobbying and public relations, including hiring top PR firms to work on the climate summit, and signing numerous contracts with executives to boost the country’s image in the face of continued criticism. Despite this, some of these agreements have ended unexpectedly. The UAE has also engaged in extensive outreach to think-tanks and lawmakers, including making large donations to influential institutions like the Atlantic Council, which have praised the UAE’s actions on climate change.

USTs meet ESG – Baden-Wurttemberg, one of the wealthiest regions in Germany, has passed a law prioritising sustainable investing on par with traditional factors like profitability and liquidity. This law could influence approximately 20% of the state’s €17 bln holdings, Bloomberg reports. The new ESG regulations have led to US Treasuries being blacklisted due to America’s failure to ratify certain treaties. While the practical investment implications are limited, this law reflects the stark contrast between ESG attitudes in Europe and the US. In the US, there’s a growing resistance against ESG, with some state governors seeking to ban its use in investment decisions altogether. Across the Atlantic, several states are aligning their investments with Paris Climate Agreement goals and allocating funds to ESG-focused indexes.

EMEA

Helping hand – The Japanese government has donated N$19 mln towards the development of a Namibian carbon markets framework in collaboration with the African country’s environment ministry and the UNDP, Namibian media sources reported, after this was announced by environmental commissioner Timoteus Mufeti on Wednesday. Namibia has officially validated its carbon markets framework, enabling it to participate in the international carbon market. The Japanese ministry of environment, in close collaboration with the UNDP, facilitated the preparation of the framework. Mufeti said the primary aim of the framework is to enable Namibia to participate by setting out the processes for developing and implementing carbon activities in the country. He said the processes for preparing the framework and consultative processes undertaken were to ensure that there is buy-in among key stakeholders, with the goal of cutting the country’s emissions by 2030. The project also involves designing a national emissions trading scheme and providing technical capacity building.

Strategic scrap – The European Parliament is debating removing the strategic technologies term in a draft EU regulation aimed at promoting industries that will drive the green transition, with some lawmakers divided on the approach, Euractiv reports. The European Commission tabled its Net-Zero Industry Act in March in response to the $300 bln US green tech subsidy programme, the Inflation Reduction Act. The aim is to ensure the EU can domestically produce at least 40% of the technologies it deems “strategic” to achieve its goal of reducing emissions to net zero by 2050. Strategic technologies – such as wind, solar, batteries and electrolysers – would also benefit from quicker permitting procedures and looser EU oversight on government subsidies. However, not all zero-emission technologies made it onto the list, with nuclear power, in particular, missing from the annexe to the Commission’s proposed NZIA regulation.

Dutch sun – London-based AMPYR Solar Europe has secured a €200m framework project financing facility with Dutch bank Rabobank that will enable the company to build and operate 350 MW of solar assets across Europe. The facility will be drawn immediately to finance three Solar photovoltaic assets in the Netherlands with more to follow later this year. The facility can be used to project finance solar farms across Europe, focusing on the AMPYR Solar Europe’s core base in Germany as well as the Netherlands.

Fund times – Allspring Global Investments is launching a new climate transition global high-yield fund with $40 mln in seed capital, Citywire reports. The decision to launch the fund came as clients were showing increasing interest in fixed income markets and sustainability themes. The fund follows a three-step allocation process, beginning with a bottom-up scoring framework to assess a company’s impact on and vulnerability to climate change, a top-down decarbonisation trajectory, and an engagement approach with companies in the high-yield universe. The fund will initially be available in Austria, Luxembourg, the Netherlands, Switzerland, and the UK, with plans for further distribution.

ASIA PACIFIC

Strengthened ties – Australia’s Climate Change and Energy Minister Chris Bowen and Treasurer Jim Chalmers will visit New Zealand this week to strengthen trans-Tasman collaboration in the transformation to net zero, cleaner cheaper energy and action on climate change, the minister said in a statement Wednesday. The two countries have said they will hold the 2+2 Dialogue annually to encourage continued leadership and collaboration on climate and work to seize opportunities from the transformation to net zero economies and advancing adaptation.

Seeking VCU buyers – China Longyuan Power Group, one of Asia’s major wind power developers, is seeking potential buyers for its 2 mln VCUs generated from China-based wind projects, the Hong Kong-listed group said in a document. Companies that are interested in the offering should submit their quotation documents by June 21, with a minimum volume of 200,000 tonnes, China Longyuan said.

Exploring forests – Indonesia’s Nusantara Capital City Authority (OIKN) has said it will explore climate funding opportunities, including carbon trading, through the Nusantara Forest Carbon Project to reduce emissions, Antara reports. OIKN has jurisdiction over matters related to forestry in Nusantara, the future capital of Indonesia.

Blue Maori – The Hinemoana Halo Ocean Initiative has secured NZ$4 mln from conservation organisations to go towards a blue carbon regime, Teao Maori News reports. The initiative promotes indigenous protection and monitoring of New Zealand’s rivers, coastal areas, and high seas, employing traditional practices and modern science. Funding was secured from Conservation International and Blue Green Futures. The next phase of the initiative’s work will be to create a plan to accelerate the recovery of marine ecosystems. A monitoring system of long-term coastal activities is also being developed.

AMERICAS

Decree deluge – Brazil President Luiz Inacio Lula da Silva this week signed eight decrees towards the resumption of the country’s leadership in climate change mitigation and controlling deforestation, and said the nation would once again become a world reference in sustainability and tackling climate change. One of the decrees establishes a National Council for COP30 to organise the UN climate summit that Brazil will host in Belem in 2025. Lula also established a decree re-establishing  Brazil’s Interministerial Committee on Climate Change, which will monitor the implementation of government measures and public policies as part of the country’s National Policy on Climate Change. What’s more, Lula issued a decree updating the instrument that creates the National Commission for REDD+. Outside of the decrees, environment minister Marina Silva delivered the Plan for the Prevention and Control of Deforestation in the Amazon to Lula, where each biome will have its own deforestation prevention and control plans.

SCIENCE & TECH

From sea to shining SEAO2 – The World Ocean Council (WOC) is collaborating with the National Oceanography Centre (NOC) and 12 other organisations on a four-year EU-led project called “Strategies for the Evaluation and Assessment of Ocean based Carbon Dioxide Removal” (SEAO2-CDR). The initiative aims to investigate the feasibility and impact of ocean-based CDR (OCDR) techniques. Businesses are already employing various OCDR strategies, including enhancing CO2 absorption in seawater and increasing algae productivity. The SEAO2-CDR project will address knowledge gaps and determine where OCDR methods are environmentally and economically viable. The project will also work on developing necessary frameworks for responsible OCDR implementation and robust monitoring, reporting, and verification strategies. The project is essential considering the IPCC’s requirement to actively remove CO2 from the atmosphere to meet climate targets.

AND FINALLY…

Won in translation – Climate Cardinals, a youth-led non-profit, has partnered with Google to use AI tools to translate over 500,000 words from climate change resources into numerous languages, Axios reports. The effort is aimed at removing language barriers and encouraging worldwide engagement with climate change issues. Initially, the organisation used Google’s AI-powered Translation Hub to create and translate a summary of the latest UN IPCC report into over 25 languages. Climate Cardinals is working to overcome the English dominance in climate change publications and ensure that critical climate knowledge reaches regions severely affected by global warming. Google’s Translation Hub uses AI to automatically translate digitally uploaded documents, with users able to refine the translations. The platform currently supports translations of 135 languages. Separately, Climate Policy Radar launched The Global Stocktake Explorer at this week’s UN climate talks in Bonn. Funded by the ClimateWorks Foundation and Bezos Earth Fund, the open AI-powered tool has unlocked over 1,600 documents and 170,000 pages of global climate policy and research, enabling access and efficient analysis of all documents in the first global stocktake – a major milestone where governments evaluate the world’s progress towards delivering the Paris Agreement.

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