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TOP STORIES

Voluntary carbon market initiative publishes buyer claim guidelines

The cross-stakeholder Voluntary Carbon Markets Integrity initiative (VCMI) on Wednesday published its guidelines to help buyers ensure integrity when purchasing carbon credits for voluntary climate pledges, a partial release coming a year on from its initial draft that leaves further details for later in the year.

ANALYSIS: Limited evidence of ‘greenhushing’ in voluntary carbon market following scandals

Recent negative media coverage has mainly affected sentiment and prices in the voluntary carbon market rather than the amount of credits retired, and does not seem to have led to an tangible increase in anonymous activity whereby corporates attempt to keep quiet about their market involvement.

EMEA

UK retains interest in becoming global carbon credit hub, though Article 6 participation ruled out for now

The UK government will consult later this year on how it can develop as a global carbon crediting hub, an official said on Tuesday, while ruling out prospects that the country could buy Article 6 credits in the near term.

Carbon offsetting “crucial” but don’t over-rely on it for net zero, UK construction industry told

The UK’s construction industry should implement an internal carbon price and seek other emissions reduction measures instead of over-relying on offsetting to reach its climate action targets.

Euro Markets: EUAs catch afternoon boost from sharp gains in power and gas

European carbon prices made heavy weather of modest gains on Tuesday morning before getting strong support from sharply rising energy prices in the afternoon, as gas and power traders reacted to supply interruptions.

Agtech company raises $5.5 mln to support sustainable farming projects

An agtech startup specialising in digital tools and technology-based strategies for sustainable farming in Eastern Europe has raised $5.5 million in a new funding round, the company announced on Tuesday.

UK climate change advisors less confident on achievement of country’s climate goals

Britain’s independent climate change advisors have cited “a missed opportunity” after the government published a new climate goal delivery plan, the committee stating it was now even less confident in the country meeting its goals from 2030 onwards than one year ago.

VOLUNTARY

South Pole becomes latest to launch a climate contribution label

Project developer and carbon credit intermediary South Pole has launched a new climate claim with an accompanying label, aiming to help companies cover their residual emissions with carbon credits beyond their own value chains to avoid allegations of greenwashing.

Microsoft beefs up “high durability” solutions in latest carbon removal procurement round

Microsoft over the past year ratcheted up its contracted volume of engineered carbon removal credits that will store GHGs for thousands of years, though still procured millions of tonnes of nature-based units with shorter permanence horizons, the tech giant said Tuesday.

Agtech firm, oil major partner to offer “high-trust, low-cost” MRV to farming sector

A US-based agtech firm has teamed up with an oil major to offer a “high-trust, low-cost” carbon measurement and verification system to help the farming sector improve its sustainability practices.

Sustainability tech firm inks carbon removal offtake for phytoplankton dispersal

A Texas-based sustainability technology firm on Tuesday announced a multi-year agreement to purchase carbon removal credits from a phytoplankton dispersal methodology.

Half of needed farming GHG cuts are financially viable, but barriers hindering adoption -consultancy

Around half of the cuts in on-farm agricultural emissions required to maintain a 1.5C global temperature pathway are either cost-neutral or yield positive returns on investment, but major barriers are still hindering adoption amongst growers, according to a new study by a major consultancy.

Digital marketplace launches API link to integrate tokenised credits into company’s DNA

A digital marketplace has launched a new service to seamlessly integrate carbon credits into a company’s products and services.

AMERICAS

US commodities regulator to hold second voluntary carbon markets gathering next month

The US Commodity Futures Trading Commission (CFTC) on Tuesday announced it will host its second voluntary carbon markets (VCM) convening in July that may inform future guidance or interpretations related to the agency’s authority over the sector.

Washington state reveals free carbon permit allocation totals for natural gas utilities

The Washington Department of Ecology on Tuesday published the schedule for distributing no-cost allowances to natural gas utilities under the state’s cap-and-invest regulation with one company receiving the majority.

Washington power producer’s lawsuit against cap-and-trade programme pushed back

The trial dates for a natural gas-fired power generator’s legal challenge to Washington cap-and-trade regulation were delayed by four months following an agreement between the disputing parties and the judge on Monday, allowing lawyers more time to review the case.

Pair of US senators unveil bipartisan clean cookstoves bill

Two US senators have introduced a bipartisan clean cookstoves bill aimed at mitigating health, environmental, and economic issues caused by exposure to smoke from traditional stoves and open fires.

ASIA PACIFIC

Australia Market Roundup: CSIRO launches soil database, more HIR projects credited

Australia’s peak scientific body has launched a new tool for farmers and land managers to analyse and compare different soil types across the country, as the Clean Energy Regulator credits more human-induced regeneration projects.

Australia proposes staged approach to climate-related disclosures in new consultation

The Australian government has opened up the next round of consultations on its proposed climate-related financial disclosure rules, which lays out the timeline of when the standards would be introduced and which entities it would apply to.

Indonesia continues to slow down deforestation rates

Indonesia’s deforestation rate fell 8.4% in 2021-22 and is now at its lowest levels in two decades, according to government data.

Japanese, French firms target Malaysia for CCS supply chains

French energy major TotalEnergies and Japanese conglomerate Mitsui have teamed up with Malaysia’s Petronas to develop a CCS supply chain in the Southeast Asian country, they announced Tuesday.

Singapore’s exchange, monetary authority to collaborate with Bloomberg-backed climate data project

Singaporean financial entities have signed MoUs to supply foundational data to the recently established Net Zero Data Public Utility (NZDPU), they announced Tuesday.

More institutional support needed for green hydrogen development in China -WEF

China, the world’s largest hydrogen producer and consumer, should map out more strategies to support the development of green hydrogen given that its current hydrogen production is largely grey, according to the World Economic Forum (WEF).

INTERNATIONAL

Tropical forests shrank 10% globally in 2022, last year of Bolsonaro’s Brazil presidency

Fewer trees were lost worldwide in 2022 than a year earlier, according to a report published Tuesday, but only because Russia avoided a repeat of its terrible wildfires while there was still a rise in the loss of  tropical forests in what was Brazilian far-right president Jair Bolsonaro’s final year in office.

Multilateral fund allocates $40 mln to Indigenous people for nature-based climate action

Climate Investment Funds on Tuesday said it earmarked $40 million in grant financing that will allow Indigenous and local communities across the Global South to engage in natural climate solutions.

BIODIVERSITY (FREE TO READ)

FEATURE: Biodiversity market participants applaud French-British initiative, but want space to grow

Early participants in the voluntary biodiversity credit market have welcomed the move by France and the UK to develop a global market framework, but stress the need for the government process to work with existing initiatives.

European Parliament committee rejects revised nature bill, moves to full assembly

The European Parliament’s environment committee (ENVI) rejected its amended text of the disputed nature restoration bill on Tuesday by the narrowest possible margin, passing the divisive legislation onto an uncertain development in the full assembly.

GEF Council approves record spending on environment, begins talks on biodiversity fund

The governing body of the Global Environment Facility (GEF) has approved the spending of a record $1.4 billion on accelerating efforts to combat biodiversity loss, climate change, and pollution, while its ongoing meeting in Brasilia has also begun discussions on designing the Global Biodiversity Framework Fund.

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CONFERENCES

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

Transatlanticism – US asset managers factor GHG emissions and other climate risks into their debt investment decisions as much as peers in Europe, according to a survey released on Tuesday, despite the Republican campaign against climate-focused investing in the United States. Nearly a third of North American fixed income managers surveyed have underweighted investments they consider to have high carbon emissions and 16% have excluded them from portfolios, slightly more than the equivalent percentages for European managers, the survey published by NatWest found. The British bank asked 225 debt investors about their commitments to reach global net zero emissions goals and how it influences their investment processes. It also found that more than half of North American asset manager respondents said that they had made a commitment to reach net zero across their portfolio because it was the best approach for delivering investment returns and reducing risk. (Reuters)

Efficiency is king – A new report from the World Bank indicates that global challenges like climate change, economic productivity, and food and water security could be tackled through efficient use of natural resources. Nature’s Frontiers: Achieving Sustainability, Efficiency, and Prosperity with Natural Capital, was co-authored by the World Bank, the Natural Capital Project, and the International Institute for Applied Systems Analysis.  It suggests almost every country has significant room for improvement in their resource utilisation. By closing these efficiency gaps, countries could double their performance in terms of economic returns or environmental outcomes. The report estimates that better management of natural resources could result in a global annual income increase of approximately $329 bln in agriculture, grazing, and forestry, along with enough food production to feed the world until 2050 without loss of forests and natural habitats. Additional benefits include the potential sequestration of 85.6 bln tonnes of CO2 and saving 366,000 more lives annually through efficient air pollution prevention.

AMERICAS

Ring of fire – Canadian wildfires in 2023 have burned through 160 Mt of carbon in BC, Alberta, Saskatchewan, and the Northwest Territories in the west, and Ontario, Quebec, and Nova Scotia in the east, according to EU’s Copernicus Atmospheric Monitoring Service, Reuters reported Tuesday. As of June 26, the annual emissions from these fires are now the largest for Canada since satellite monitoring began in 2003.

Forest forever – The Canadian federal government announced a strategy for dealing with extreme weather events like wildfires and a pledge to eliminate deaths from extreme heat by 2040 Bloomberg reported on Tuesday. On the same day, the British Columbia Centre for Innovation and Clean Energy (CICE) and FortisBC in a press release invited experts to submit plans to increase the resilience of the Pacific province’s forest. Successful applicants will receive a combined C$6 mln ($4.55 mln) from the two group’s Clean Growth Innovation Fund (CGIF).

Funding switch – Canada’s environment ministry announced federal funding of up to C$48.7 mln ($36.9 mln) for the province of Prince Edward Island (PEI) to switch to clean energy, the government said in a press release on Tuesday. The funding will be divided in two parts: up to C$16.8 mln will support low-income homeowners transition from home heating oil to low emitting heating technologies; and up to C$31.9 mln will support provincial initiatives that align Canada’s 2050 net zero emissions targets.

RGGI refund – The 11 RGGI states spent $371 mln in programme proceeds on energy efficiency, clean and renewable energy, beneficial electrification, GHG abatement, and direct bill assistance in 2021, according to a press release from the initiative Tuesday. These investments are projected to generate $1.2 bln in electricity bill savings while avoiding the output of 4.4 MtCO2. Energy efficiency projects received 51% of the funding in 2021.

EMEA

Nuclear tussle – The future of Spain’s nuclear power industry hinges on next month’s election, with the opposition party that now leads the polls campaigning to extend the use of the plants that the government wants to start closing from 2027, Euractiv reports. The debate, which comes as the country faces a sweltering summer blamed on climate change, reflects competing views between the conservative opposition People’s Party and ruling Socialist Party about how to decarbonise the economy. Sticking with nuclear requires investment in aging power plants, but offers the assurance of stable power and could improve ties with nuclear-reliant France next door. A swifter shift to solar and wind meanwhile offers cheaper generation, but may demand a grid overhaul to cope with more intermittent supplies.

Sunny days – Wind, solar, and other renewable energy sources covered 52% of German electricity consumption in the first six months of 2023, up from 49% in the first half of last year, preliminary data by the Centre for Solar Energy and Hydrogen Research Baden-Wuerttemberg (ZSW) and energy industry association BDEW showed. Overall gross electricity production was at 266 bln kWh, a decrease of 11% YoY. Electricity consumption dropped from 281 bln kWh to 263 bln, as high energy prices have led to reduced use with households and industry cutting in response to market developments and pleas by the government to conserve. Of the total consumption in the first half of 2023, 58 bln kWh came from onshore wind, 33 bln from solar PV, 22 bln from biomass, 12 bln from offshore wind, and 10 bln from hydropower. A very sunny May, with record monthly solar power input of 8.8 billion kWh, made a big contribution, and June could even surpass this record, said the two organisations. However, they warned that a lack of skilled workers could represent a bottleneck for renewables build-out on the path to climate neutrality 2045, as many companies were had difficulties finding suitable employees today. Germany aims to increase the share of renewables in electricity consumption to 80% by 2030 and have largely emissions-free supply by 2035. (Clean Energy Wire)

C’est chaud – The European Commission approved France’s reviewed Recovery and Resilience Plan, which includes €2.8 billion from the REPowerEU plan to help finance France’s thermal renovation of old buildings. Most of the money will go towards a new subsidy created by the government to help homeowners make green renovations. Part of the funding will go towards developing hydrogen-induced cars and batteries.

Slovakian wind – The European Commission endorsed on Tuesday Slovakia’s revised recovery and resilience plan. If approved by the Council too, the plan will be worth €6.4 bln in grants (up from the previous €6 bln) as it will include a REPowerEU chapter, 64 reforms and 60 investments. In particular, the reforms will accelerate the deployment of renewables by defining suitable areas for wind energy development in Slovakia, streamlining the permitting framework, including for the use of geothermal energy and heat pumps, and simplifying grid connection procedures for renewables. The investments will expand the capacity of the electricity grid and boost sustainable transport through zero-emission vehicles. The REPowerEU chapter also includes measures to increase energy efficiency. In total, 46% of the EU support will focus on the green transition (up from 42% in the original plan).

ASIA PACIFIC

Lay of the land — Australia’s Queensland government has opened the third round of the Land Restoration Fund’s Carbon Farming Advice Scheme (CFAS), it announced. Eligible landholders who are interested in carbon farming can access up to A$10,000 worth of advice from Approved Advisers through CFAS. A total of A$700,000 is available for this round. The CFAS program is jointly delivered by the Land Restoration Fund and the Queensland Rural Industry and Development Authority.

Low-carb Li – Japanese trading house Mitsui has teamed up with Osaka-based Microwave Chemical for the development of microwave-based low-carbon lithium ore processing technology, it said in a statement on Tuesday. The aim of the partnership is to establish the world’s first eco-friendly microwave-based lithium ore processing method to electrify the calcination process, the main source of the CO2 emitted when lithium is processed, the statement said. Pilot verification will be carried out with a view to a transition to commercial operations by 2026, according to Mitsui.

Bad example – China Sports Lottery Administration Centre, an agency under the country’s sports governing body, has been accused of emitting extra emissions and failing to meet its compliance under the local ETS within the prescribed timeframe, according to a notice recently issued by Beijing’s environment bureau. The bureau said it will hold a hearing for the case on July 13 and allow five participants to join the event.

VOLUNTARY

VCS consultation – Carbon credit standard manager and developer Verra on Tuesday launched a public consultation on proposed changes to the VCS programme to strengthen and update the rules. Verra said the revisions would also align the program with certain integrity initiatives in the voluntary carbon market, such as the Integrity Council for the Voluntary Carbon Market, and make the VCS eligible for the next phase of UN body ICAO’s global aviation offsetting scheme CORSIA. The consultation seeks feedback on safeguard rules; the AFOLU Non-Permanence Risk Tool and minimum project longevity and crediting period requirements to reduce non-permanence risk; rules for when project construction emissions and upstream emissions increases must be included in VCS methodologies; and the process for revising standardised methods. Verra will hold a public webinar on the consultation on July 17, and intends to publish VCS Program changes in late August.

Audit forum – Seven Indian carbon project auditing firms including Earthood and Carbon Check have joined forces to form the International Carbon Auditors Forum to foster collaboration among auditors, developers, and standards to facilitate development on project methodologies. By teaming up, the firms also aim to ease project review delays due to miscommunication and to spur better coordination among market stakeholders, according to Earthood CEO Kaviraj Singh.

Penny for your thoughts – Xpansiv market CBL’s front-month Core Global Emissions Offset (C-GEO) futures saw 1,000 tonnes transact at just $0.01 on Tuesday, according to data from CME Group. The contract is underpinned by technology-based offsets aligned with the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles (CCPs), which set out a benchmark for quality. The trade at just a penny comes as carbon credit prices – particularly standardised, exchange-traded units – have tumbled over the past 1.5 years amid global economic impacts, media reports and studies that have called into question the integrity of credits, and emerging quality guidance. It harkens back to previous instances when – due to enormous supply coupled with zero demand – carbon units have traded for virtually nothing, for example in the EU ETS at the end of Phase 1 (2005-07) and in the CDM in the mid-2010s.

INVESTMENT

Compact cash – Compact Syngas Solutions (CSS), a Welsh clean energy company, has received nearly £4 mln in government funding to improve the efficiency of its biomass and waste-to-hydrogen plants through carbon capture. The funds, from the UK Department for Energy Security and Net Zero’s Bioenergy with Carbon Capture and Storage Innovation Programme, will enable CSS to construct a full-scale rig for demonstrating CO2 separation and storage in the production process using water. This will improve the carbon footprint and efficiency of the hydrogen produced. The technology, which generates hydrogen gas from waste products, will contribute towards the UK’s Net Zero 2050 target by preventing waste materials from ending up in landfill and producing hydrogen, a clean fuel with no GHG by-products.

SCIENCE & TECH

Geo-collaboration – The EU will join an international effort to assess whether large-scale geoengineering interventions are viable options for fighting climate change. The bloc will announce a framework Wednesday for assessing the security implications of a rapidly warming planet, such as the potential for scarce water or food to trigger conflict and migration, according to a draft document seen by Bloomberg. Part of that assessment includes studying the potential dangers of re-engineering the atmosphere. Read Carbon Pulse’s feature on scientists’ push for more geoengineering testing as the first “carbon cooling” credits emerge and an op-ed from scientists on how Solar Radiation Modification might provide an auxiliary tool to help reduce climate risk.

Calling all removers – The US National Energy Technology Laboratory (NETL) has announced that its Direct Air Capture Centre, based in Pittsburgh, is accepting carbon removal partners with technology readiness levels of 3 to 6 with capabilities to test emerging technologies from lab-scale (0.1 kgCO2/day) and small scale pilot (30 kgCO2/day).

AND FINALLY…

Steam, punked – New Belgium Brewing will replace one of its four natural gas-powered boilers at its main brewery in Fort Collins, Colorado with an electrified boiler from startup AtmosZero, aiming to reduce GHG emissions. The new 650-kw pilot boiler system uses heat pump technology, making it twice as efficient as resistive boilers, MIT Technology Review reports. Heat production from industry, which frequently relies on steam, is responsible for approximately 10% of global CO2 emissions. Despite promising energy efficiency, AtmosZero’s products may struggle to compete with the low costs of gas-fuelled boilers. The pilot project with New Belgium, famed for its Fat Tire IPA, is expected to last six months, with the outcome potentially leading to a commercial deal. The brewery aims to be carbon neutral by 2030. AtmosZero has raised $7.5 mln to date in seed finance from venture investors, with a further $500,000 in funding coming from the US Department of Energy, Axios reports.

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