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TOP STORY

Experts urge integrity alignment between voluntary carbon market and Article 6 to end confusion

The voluntary carbon market (VCM) and Article 6 should apply a common criteria of minimum integrity to clean up confusion across buyers and sellers and ensure that carbon credits remain consistently regulated in line with international practices, experts told a virtual event on Wednesday.

EMEA

Swiss paying an average of $23.50 for Article 6 carbon credits, far below domestic costs

Buying sovereign carbon credits is proving far cheaper than domestic offsetting in Switzerland to hit Paris Agreement climate targets, the Klik Foundation revealed Wednesday in the wake of last week’s referendum that saw Swiss voters back the new climate bill to cut fossil fuel use and reach net zero by 2050.

EU cuts July-December auction volumes 22% after REPowerEU permits added, MSR withdrawal

EU member states has cut the total volume of EUAs sold at auction between July and September by 22%, after the bloc begins selling allowances next month to fund the bloc’s REPowerEU initiative and the Market Stability Reserve adjusts market supply in the last four months of the year.

Euro Markets: EUAs post biggest drop in three months after funds slash net short positions by 91%

EUA prices posted their biggest one-day drop in three months as the market plunged after new exchange data showed that speculative traders had almost entirely covered their net short position last week, while energy markets responded by erasing early gains.

EU Green Deal future seen as resilient despite threat from political volatility -experts

Sustainability experts are optimistic that the European Green Deal agenda can continue on a net zero 2050 pathway, despite a recent wave of “climate fatigue” that has hit some parts of the bloc’s political spectrum.

Removals in the EU ETS is a question of how, not if, says academic

The inclusion of removals into the EU ETS will be inevitable in order to achieve the market’s “endgame” around 2040, according to an academic who specialises in European carbon pricing.

AMERICAS

US federal review panel calls for halt of food company’s net zero claims

A government advertising watchdog on Tuesday made a recommendation for a US-based multinational food processing company to discontinue using claims relating to achieving net zero emissions.

Multi-year US RFS blending quotas underwhelm on advanced biofuels, avoid E-RINs

The US EPA published its final Renewable Fuel Standard (RFS) blending quotas on Wednesday for the next three years without the ‘e-RIN’ proposal, as the advanced biofuels quota surprised market participants by not increasing as much as expected compared to the preliminary volumes.

Massachusetts June GWSA carbon auction settles at lowest price in five sales

Massachusetts’ Global Warming Solutions Act (GWSA) current vintage cap-and-trade auction this month settled at the lowest level since last March as offered volume increased, while the future vintage sale cleared at the highest price since September, according to results published Wednesday.

ASIA PACIFIC

NZ Market: NZU price hits two-year low as market confidence reaches zero

The spot price for NZUs hit a two-year low in Thursday morning trade, and is likely to fall “much lower” as the release of the government’s ETS review consultation created further uncertainty in the market, according to participants.

Australia should adopt London Protocol amendments critical for CCS development, parliamentary inquiry says

An Australian parliamentary inquiry has recommended the government ratify amendments to the London Protocol, which would allow companies to transport and store CO2 across international boundaries, a crucial regulatory milestone for CCS project developers.

Japanese firms complete first trial of cattle manure marine fuel

A Japanese shipping giant has successfully completed a trial using liquefied bio-methane (LBM) derived from cattle manure as a marine fuel on a domestic vessel, marking Japan’s first use of carbon-neutral LBM derived from biomass, it announced Wednesday.

Australia Market Roundup: Another nearly 1 mln ACCUs issued, as price hits 6-month low

Australia’s Clean Energy Regulator (CER) has announced the issuance of close to 1 million Australian Carbon Credit Units (ACCUs) once again, as it continues to clear the backlog of human-induced regeneration (HIR) projects awaiting to be credited.

Australia commits A$30 mln to SAF, establishes Jet Zero Council

The Australian government has committed A$30 million ($20 mln) in grant funding to ramp up domestic sustainable aviation fuel (SAF) production, and has launched an advisory council to help decarbonise the aviation sector, it announced Wednesday.

Taiwan to strengthen emission inventory rules in preparation for upcoming carbon levy scheme

Taiwan’s environmental regulator has proposed far-reaching revisions to the existing GHG emission inventory and registration management rules in preparation for the upcoming domestic carbon levy scheme.

INTERNATIONAL

Global South needs to triple clean energy investments to realise climate goals -IEA

Annual clean energy investments in emerging and developing economies will need to more than triple from the current level by the early 2030s to meet rising energy needs and align with the climate goals set out in the Paris Agreement, a report by the International Energy Agency (IEA) has found.

Company valuation at risk if sustainability perception, performance not aligned -consultancy

A significant amount of value is at risk for many of the world’s biggest brands if their stakeholders’ perceptions of sustainability are not in alignment with actual corporate performance, according to a study.

VOLUNTARY

Verra suspends Cambodian REDD+ project

Offset standard registry Verra has suspended a Cambodian REDD+ project and placed it under review based on stakeholder comments related to quality control.

Caribbean seagrass stores $88 bln worth of carbon annually -study

Caribbean seagrass offers various benefits worth around $255 billion annually, including $88.3 bln worth of carbon storage, according to a new study.

Carbon removal intermediary raises $13 mln in fast-growing nascent sector

A startup carbon removal marketplace has raised $13 million in Series A funding after claiming a substantial share of the high-value deals seen to date in the nascent sector.

Two global firms announce removal credit deals

Two major global firms announced separate deals on Wednesday to purchase carbon removal credits toward their emissions reduction goals.

Berlin-based carbon footprint calculator startup raises €3.5 mln

A Berlin-based climate tech startup has raised €3.5 million in funding to help it develop its precise carbon footprint calculation and compensation tool for travel and logistics emissions.

Estonian carbon removals startup raises €1 mln from investors for African projects

An Estonian startup developing carbon removal projects through land restoration in Africa has successfully closed a €1 million investment round.

Blockchain company poaches head of origination from nature-based carbon credit investor

A US-based blockchain company has hired the lead originator from an Australia-headquartered carbon market financier and asset manager, as the firm readies for a major registry to permit credit tokenisation in Q3.

BIODIVERSITY (FREE TO READ)

Norway proposes to open up area bigger than UK for deep seabed mining

The Norwegian government has announced plans to open up an area of over 280,000 sq. km for commercial seabed mineral activities, in spite of stern warnings from scientists and green groups of potential severe consequences for marine biodiversity.

Project launches to develop blueprint for bioreef restoration projects

Energy company Orsted and green group WWF have launched a project to restore biogenic reefs in the North Sea in a bid to develop a globally replicable methodology while at the same time contributing to the company’s net positive biodiversity impact ambitions.

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CONFERENCES

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

Warning – BHP, the world’s largest miner, was warned that its carbon emissions are set to rise in the near term due to production growth. Rapid technological advancements and industrial collaboration will be crucial in meeting the company’s goal of net zero emissions by 2050. The firm’s emissions trajectory is expected to be non-linear, with an initial increase before a decline by the end of the decade. The miner aims to cut its operational (Scope 1 and 2) GHG emissions by at least 30% on 2020 levels by 2030. However, these targets do not include Scope 3 emissions, such as those generated by steelmakers and other customers using BHP’s products. The company also plans to spend about $4 bln on decarbonisation by 2030, mostly on replacing diesel in haul trucks, and aims to build 500 megawatts of renewable energy and storage to cater for increased power demand from its switch to electric haul trucks. BHP said it would likely need to make use of ‘high-integrity’ carbon credits to offset emissions that could not be avoided as part of its mid-century goal.

EMEA

Changing minds – Sweden’s parliament adopted a new energy target on Tuesday, giving the right-wing government the green light to push forward with plans to build new nuclear plants in a country that voted 40 years ago to phase out atomic power, Euractiv reports. Changing the target to “100% fossil-free” electricity, from “100% renewable” is key to the government’s plan to meet an expected doubling of electricity demand to around 300 TWh by 2040 and reach net zero emissions by 2045.

Speaking terms – The governments of China and Germany have agreed to introduce a “Climate and Transformation Dialogue” to speed up their transition towards a more climate friendly economy, Clean Energy Wire reports. Fighting climate change remained a main concern for the two countries, said chancellor Olaf Scholz at the first in-person government consultations between the two countries since the coronavirus pandemic, which take place in a markedly more difficult international environment. Both Beijing and Berlin would focus their cooperation on issues such as making industrial processes more climate-friendly, promoting the switch to climate-friendly mobility and strengthening the circular economy, Scholz said at the visit of Chinese premier Li Qiang to Berlin. One day ahead of the talks, the countries had signed a declaration of intent to intensify cooperation to tackle environmental challenges.

ASIA PACIFIC

Poles and wires — Australian electricity transmission company Transgrid has released a 10-year roadmap that outlines a A$16.5 bln ($11.2 bln) investment in batteries, and other energy storage, as well as 2,5000 km of new transmission lines to operate the grid at 100% renewables, Reuters reports.  The company owns and operates over 13,000 km of transmission lines across New South Wales (NSW) state and the Australian Capital Territory. Transgrid CEO Brett Redman said that with over 80% of coal-fired power capacity in NSW expected to retire, and 28 GW of new renewable and storage capacity coming online in the next 10 years, investment must urgently accelerate in all areas of the energy transition. The plan highlights the scale of investment required to reach the Labor government’s pledge to cut carbon emissions by 43% from 2005 levels by 2030 and how a sizable chunk of the spending falls outside building new wind, solar and hydro projects. The bulk of the funds, A$14 billion, will be spent on transmission lines to connect new clean energy projects to customers. Roughly A$2.2 billion will be spent on energy storage to secure the grid as coal plants close, including 10GW of batteries A final A$300 million will be spent on new staff and technology to operate the upgraded grid.

Save more, earn more – Korea Electric Power Corporation (KEPCO), the largest electric utility in South Korea, has launched a special programme targeting individual and household customers in residential buildings to encourage energy saving and support vulnerable groups, it announced on Wednesday. Under the programme, if subscribed customers use less power than usual, the demand management company will sell the reduced power to the electricity market and pay customers the proceeds, KEPCO said.

AMERICAS

Future farming – Brazilian farming giant Amaggi is expanding its regenerative agriculture practices to its suppliers, in an effort to reach its net-zero by 2050 goal, a representative from the company told Reuters Wednesday. Amaggi is providing financial incentives to its 6,000 suppliers to invest in new machinery, use crop rotation, use biologically-sourced solutions instead of chemical ones, low-till farming and integrate livestock with agriculture.

Offset update – The Canadian province of Alberta published an update to its offset protocol on GHG reductions from pneumatic devices Wednesday to remove eligibility for high to low conversions. Additionally, the baseline for the offset was adjusted for instrument gas to instrument air projects. Greater flexibility was given to enable nitrogen projects, and updated manufacturer specifications for devices.

Well OK – Regulator Oklahoma Corporation Commission is planning to issue carbon credits from plugging more than 17,000 orphaned wells left in the state, a local newspaper reported Tuesday. So far, the regulator has used $7 mln in state funds to plug 361 wells in 2023. Funds amounting to $25 mln from the Inflation Reduction Act were used to clean up another 1,000 sites, the report outlined. Last month, legislatures approved a state law to register and sell carbon credits, which is expected to fund closing additional orphaned wells in the state. Standards body American Carbon Registry (ACR) announced plans to create orphaned well carbon credits in May. In 2022, EPA estimated that 7–20 Mt of methane escapes from more than 120,000 orphaned wells. [The Oklahoman]

VOLUNTARY

Dynamic approach – Pachama, a climate tech startup which uses AI and satellite data to measure the impact of forestry carbon projects, has released an update to its evaluation criteria. The launch of its criteria 2.1 marks the official implementation of Pachama’s dynamic control area baseline technology, explored in recent Carbon Pulse analysis. This is reportedly the first ever AI-based tool to be used to evaluate forest project claims.

Thumbs up – The International Carbon Reduction and Offset Accreditation (ICROA) has endorsed the carbon crediting standard City Forest Credits (CFC), used for urban forests and tree projects in and around cities and towns. Almost all the projects are on public property or open to the public. Based on recommendations from ICROA, CFC strengthened its Standard to improve transparency, policies, and best practices. Each City Forest Carbon+ Credit from an urban forest carbon project includes quantified co-benefits such as stormwater reduction, air quality impacts, and energy savings, as well as reported social impacts such as social equity for under-resourced communities and physical, mental, and social health benefits. CFC has issued credits to projects representing an estimated $128 million in ecosystem co-benefits over 50 years.

The skyridge is the limit – Carbon credit project developer 3Degrees announced Wednesday that standards body Verra has approved a “first-of-its-kind” methane avoidance project at Washington-based Skyridge Farms. In a press release, 3Degrees said project marks a significant leap forward for manure management, particularly as it becomes the first to be approved as a voluntary carbon project. Livestock Water Recycling’s (LWR) First Wave System allows Skyridge Farms to eliminate methane production from their onsite waste, providing a notable alternative to methane capture. The First Wave System is a process designed to recover methane-causing volatile solids from raw manure while producing a clear filtrate liquid for reuse in flush systems or for fertigation through center pivot systems.

Breakthrough funding – Washington State University (WSU) has been granted over $3.2 mln by the US Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE) to fund the university’s “breakthrough” carbon-negative concrete that retains its strength relative to the standard manufacturing process. The project was one of 40 selected nationwide for funding by EERE’s Industrial Efficiency and Decarbonization Office (IEDO). The IEDO has announced $135 mln in total funding for projects designed to reduce carbon pollution and move the US toward a net zero emissions economy by 2050.

INVESTMENT

That’s Amundi – Finnish pension firm Ilmarinen Mutual Pension Insurance has invested over €500 mln in Amundi’s new MSCI Europe Climate Action Ucits ETF. The fund tracks an index to identify the top 50% of European sector leaders in terms of positioning and actions relative to climate transition. The index methodology considers metrics such as carbon intensity, science-based targets, climate risk management, and revenues to rank and select companies. The ETF provides an alternative to those linked to the Paris-aligned benchmark and EU Climate Transition benchmark. Ilmarinen’s investment will offer exposure to companies likely to perform better as business environments change due to climate warming. (Citywire)

In Transit(ry) – Singapore-based climate tech company Transitry has secured $600,000 in its pre-seed funding round. The round saw participation from prominent investors like Info Edge Ventures, Plug & Play, Antler, and other angel investors. This funding will enhance Transitry’s position as a leading provider of advanced digital MRV solutions in the carbon credit economy. The company plans to use the funds to expand its product offerings, forge alliances with other organizations, and boost adoption of eco-friendly initiatives. Transitry uses AI and blockchain technology to improve carbon governance by offering access to green finance, providing transparent and traceable solutions in the climate tech industry. (Technode Global)

AVIATION

SAF JV – Global chemicals and energy company Sasol and climate tech firm Topsoe have signed an agreement to establish a 50/50 joint venture, subject to regulatory approval, that will produce sustainable aviation fuels (SAF). The SAF will be derived from non-fossil feedstock, utilizing green hydrogen, sustainable sources of CO2 and/or biomass. The joint venture will leverage Sasol’s Fischer Tropsch and Topsoe’s related technologies.

AND FINALLY…

Soup’s on! – Unlike the orange skies and toxic air coming from the Canadian wildfires, CO2 emissions are not something everyone can see floating around each day. However, NASA is changing all that, using high-tech visual models to reveal all of the invisible GHG swirling around the globe each year. The NASA team broke down this thick soup, which covers global CO2 emissions throughout 2021. Fossil fuels are represented in orange. Burning biomass is in red, with green representing land ecosystems and blue denoting the ocean. The blue dots on the map show where carbon is mostly absorbed by ocean waters, while the green dots represent producers on land. Over North America and South America, the videos show that a major pollution hotspot is in the northeastern US Meanwhile, the fast oscillation over the Amazon rainforest is a result of plants absorbing carbon while the Sun shines, allowing it to build up overnight. (StudyFinds)

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