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TOP STORIES

VCMI buyer code to accept cheap credits, signals differential treatment is on its way

The VCMI’s new code for corporate buying will accept carbon credits currently trading below $1 based on an “understanding” of improved quality, while the cross-stakeholder body will soon develop special provisions for specific buyers.

Experts question whether VCMI claims code is out of reach for most corporates

Voluntary carbon market experts have questioned whether the VCMI’s claims code sets too high a bar for many companies to be able to buy carbon credits, risking a drop off in demand.

INTERNATIONAL

PREVIEW: Near-term global shipping emissions targets need to be binding, green groups urge at decisive IMO meeting

Talks of introducing “indicative checkpoints” instead of legally binding 2030 and 2040 emissions targets at this week’s International Maritime Organisation (IMO)’s closed-door working meeting would put a 2050 zero emission target for the shipping sector at risk, NGOs have warned.

Wide spread in carbon pricing risk within and across sectors, says analytics firm

There is huge variation between corporates in terms of their exposure to carbon pricing both within and between sectors out to 2030, with not one industry equally impacted by the risk of rising prices, an analytics and financial products firm said on Thursday.

Oil and gas sector has no plans to ramp down production -report

Oil and gas companies have no plans to phase out fossil fuels, according to a study that assessed the world’s top fossil fuel companies and found most still have plans to increase total oil production this decade.

VOLUNTARY

Carbon capture alliance launches consultation on first accounting methodologies

A cross-stakeholder carbon capture body has launched for public consultation its first four carbon accounting methodologies that have been developed under Verra’s voluntary carbon VCS programme, spanning carbon capture and storage, direct air capture, saline solutions, and CO2 transport.

Voluntary carbon firm proposes ‘blended tonne’ combining nature and tech-based removal credits

A US-based soil carbon project developer has put forth an idea for a new removal credit that combines immediately available nature-based tonnes with engineered technologies that will sequester CO2 at a later point.

US VC investor buys 1k tonnes of removal credits from carbon market startup

A US venture capital firm has extended its partnership with a carbon market startup, agreeing to buy 1,000 tonnes of emissions removals credits in the process.

Scientists develop method to increase accuracy of measuring rice paddy methane

Scientists have developed a new technology that increases the accuracy of measuring methane emissions from rice paddy fields, in a breakthrough that could have important implications for the voluntary carbon market.

Study highlights CDR benefits, impacts of BECCS versus afforestation and reforestation

A new study highlights the relative benefits and impacts of two major carbon dioxide removal (CDR) methods – bioenergy with carbon capture and storage (BECCS) and afforestation and reforestation (AR) – on the carbon cycle and surface climate.

AMERICAS

WCI Markets: CCAs slide on profit taking, WCAs seesaw amid natural gas allocations

California Carbon Allowance (CCA) prices fell each day this week on reported profit-taking and as the front-month contract went into delivery, while Washington Carbon Allowance (WCA) values seesawed following two weeks of stagnation and as the state distributed free permits for natural gas utilities.

RFS Market: RIN prices lift to pre-rulemaking highs amid smaller surplus bank revelation

US biofuel credit (RIN) values lurched higher in recent days to match levels before the EPA’s publication of final multi-year Renewable Fuel Standard (RFS) quotas, as market participants pointed to increased refiner buying and a tighter surplus bank.

New US CFTC task forces clamp down on carbon credit fraud and cybersecurity threats

The US Commodity Futures Trading Commission (CFTC) convened on Thursday a new task force to address environmental fraud and misconduct in carbon credit markets, as well as a team overseeing issues related to cybersecurity and emerging technologies including artificial intelligence (AI).

ASIA PACIFIC

ANZ lowers ACCU price forecast, but predicts spot price could reach A$60 in the next 18 months

Despite the market recently being inundated with Australian Carbon Credit Units (ACCUs), a major bank’s report expects the unit price to rise thanks to compliance demand created by the Safeguard Mechanism.

Japan to review offset crediting schemes to boost CDR market

Japan should provide more institutional support for the development of the emerging carbon dioxide removal (CDR) market, such as expanding the scope of existing offset crediting schemes, a government-appointed study group has urged.

Australian tech company receives funding ahead of platform beta-launches

An Australian carbon blockchain company has received a funding injection from an agricultural investment firm ahead of the beta-launch of its platforms next month.

EMEA

Euro Markets: EUAs little changed as energy climbs on end-of-quarter book-keeping

European carbon prices ended the day little changed after early gains gave way to consolidation in the afternoon, while energy prices climbed through the day as traders closed their books ahead of the end of the quarter.

Spain seeks to set EU example, submits revised energy plan just in time

Spain submitted a draft version of its revised national climate and energy plan (NECP) on Thursday a day ahead of the deadline, setting a good example as it prepares to assume the six-month EU presidency while others member states were expected to run late with their plans.

AVIATION

Korean Air teams up with domestic refinery for SAF development

Korean Air, South Korea’s largest carrier, has partnered with a major domestic oil refiner to push for the commercialisation of aviation biofuel, an initiative that will receive support from the government, it announced on Thursday.

BIODIVERSITY (FREE TO READ)

INTERVIEW: Biodiversity data startup aims to channel recent funding to fight ‘naturewashing’

A biodiversity startup using data analytics to try and scale investment in measurable nature positive outcomes, including via biodiversity crediting, plans to use a recent fund raise to grow out its platform, capture more species data, and expand its team in a bid to make ‘naturewashing’ a thing of the past.

US non-profit releases paper to kick-start debate on nature-based currencies

California-based Open Earth Foundation on Thursday published a whitepaper outlining a potential system for integrating nature-based currencies (NBCs) into the broader economy.

Biodiversity Pulse Weekly: Thursday June 29, 2023

A weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).

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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

Shifting places – China made the top 20 of the Energy Transition Index for the first time as the country continues to advance its carbon peak and neutrality goals, according to a new report from the World Economic Forum, as reported by Yicai Global. China ranked 17th in this year’s list with a score of 64.9, moving up 51 places from 2021’s rankings, the WEF Fostering Effective Energy Transition 2023 report showed. Sweden was first this year with a score of 78.5, followed by Denmark and Norway with 76.1 and 73.7, respectively. The top 10 countries were all western and northern European. China and Brazil, which took the 14th spot, were the only emerging economies in the top 20.

EMEA

Mixed signals – Norway’s government said it has given approval for oil companies to develop 19 oil and gas fields with investments exceeding $18.5 bln, part of the country’s strategy to extend production for decades to come, Climate Home reports. The news comes six months after the Norwegian government pushed unsuccessfully at the COP27 climate talks for an agreement to phase out unabated fossil fuels, and six months before COP28, where they are likely to try again. Norway’s parliament in 2020 introduced temporary tax incentives to encourage petroleum investment at a time of low activity, triggering a rush of applications from energy companies.

Thirst for gas – Germany’s quest for LNG as a substitute for halted Russian pipeline supplies entails significant risks regarding climate change mitigation, as the country’s demand could lead to new extraction projects and lock-in effects abroad, and methane, and CO2 emissions from extraction and transport to their final consumption are high, several reports commissioned by the German climate action science platform show. The government advisory panel, which is made up of several renowned climate and energy research institutes, called on the government to take these climate risks into account for LNG expansion plans, Clean Energy Wire reports.

Fill ’em up – Germany’s economy ministry has proposed to extend current regulation to the extent to which gas storage facilities have to be filled at certain times of the year, said the economy ministry in a press release. Based on a report evaluating developments during the energy crisis, the government says that the rules introduced in the wake of the tense situation regarding the energy markets in 2022 “have proven their worth” as well-filled storage facilities contributed to supply security and “calmed the markets.” The ministry proposes to extend the rules by two years until Apr. 1 2027 and said it would introduce a legislative proposal after the parliamentary summer break. The extension of the regulation means storages will have to be filled 75% by Sep. 1, 85% by Oct. 1, 95% by Nov. 1, and 40% by Feb. 1.

Hylsinki – Finland has doubled down on its hydrogen ambitions and is seeking to become a key player in Europe with revised targets for renewable hydrogen production, a new report from Hydrogen Cluster Finland released this week showed. Finland aims to be a “leading high-value hydrogen economy in Europe by 2035” and has reaffirmed its position that the country will be responsible for 10% of the EU’s renewable hydrogen production. The increase in electricity demand for renewable hydrogen production is set to be covered by additional wind energy development, with the report stating that as of May 2023, wind-power projects under various stages of development amounted to 120 GW of additional capacity. With this build-up of renewables availability, Finland estimates it could produce as much as 212 TWh/year of electricity allocated for renewable hydrogen by 2045, and production of 3 Mt/year by 2035 at a cost of €1.60/kg for pure hydrogen. This will be done through the creation of hydrogen valleys that will be encouraged through “favourable market conditions and regulation” and coordination with both public and private sector bodies that make decisions in a timely fashion. (ICIS)

ASIA PACIFIC

Hydrogen state —  South Australia has outlined plans to become a green hydrogen superpower boasting a more than 40-foild increase in large scale wind and solar capacity in the state’s Green Paper on the Energy Transition, RenewEconomy reports. The study said the state government wanted to align itself with the projections of the Australian Energy Market Operator’s “Hydrogen Superpower” scenario for future energy sources and demand. In South Australia, by 2050, the Hydrogen Superpower scenario leads to over three times more utility-scale storage capacity (5 GW), over six times more wind capacity (55 GW), and over seven times more utility-scale solar capacity (63 GW), according to the paper. This is broadly consistent with the government of South Australia’s understanding of current privately proposed projects, it said. he state currently has just over 3GW of completed large scale wind and solar capacity. South Australia has already made a strong commitment to the green hydrogen sector, promising nearly A$600 mln to support what would be the world’s biggest green hydrogen generation plant (200 MW) and electrolyser (250 MW) at Whyalla.

BlackRock battery — BlackRock has raised more than A$500 mln ($331 mln) from local and offshore co-investors to help fund a 850MW/1,680MWh grid-scale battery project that would be the largest in the southern hemisphere, the Nine newspapers report. Once complete, the Waratah Super Battery will be the biggest in the country and one of the biggest globally. BlackRock raised the funds after its subsidiary, Akaysha Energy, won the tender to build the project late last year. Charlie Reid, BlackRock Asia-Pacific’s co-head of climate infrastructure, said the project would help deliver the storage capacity needed to make the power grid more reliable and resilient, and help Australia achieve its renewable energy ambitions. BlackRock’s other co-investors in the project include education industry super fund NGS Super, and the federal government’s Clean Energy Finance Corporation, which has tipped in A$100 mln.

Reforms underway – Taiwan’s environmental regulator has proposed a set of draft revisions to the existing management rules for GHG emissions reduction projects, as the island is set to introduce a domestic carbon levy scheme next year at the earliest. The revisions are meant to ensure the regulations are aligned with the principles highlighted by international standards and improve the efficiency of the methodology review process, reducing the burden of project developers, Environmental Protection Administration (EPA) said in a notice published Thursday. In a similar move, the regulator earlier this month published another draft to update the current GHG emission inventory and registration management rules.

Green light – Japan’s Mitsubishi Shipbuilding and Nippon Yusen Kabushiki Kaisha (NYK Line) have been granted approval in principle (AiP) from Japanese classification society ClassNK for a ship that can transport ammonia and liquefied CO2 (LCO2), according to a company statement released Thursday. The update comes after Mitsui OSK Lines (MOL), another Japanese shipping firm, earlier this week announced that it has completed concept designs and acquired AiP for an LCO2 project from two major maritime classification societies.

First in the country – Hyundai Steel said its low-carbon H-beam steel product, manufactured in an electric furnace by using recycled iron scrap, has earned an eco-friendly certification from the country’s environment ministry, the first steelmaker in Korea to do so, according to the Investor. The firm also completed the production line for an ultra-high strength H-beam steel, which can cut emissions throughout a construction project due to a shorter construction period and lower costs, the report said.

AMERICAS

Cross-Canada carbon cash – The Newfoundland and Labrador (NL) and Canadian governments on Thursday announced C$157 mln towards the implementation of new fuel switching and energy efficiency programmes over the next four fiscal years. In a press release, the NL government said the new Oil to Electric Incentive Program will provide incentives that are available to oil-fuelled homeowners with rebate amounts of up to C$17,000 for low and moderate-income households. Additionally, the Canadian government announced an investment of up to C$1.37 mln from the Low Carbon Economy Fund to support six new projects under the Northwest Territories’ Greenhouse Gas Grant Program.

Crossing the pond – BASF and Yara Clean Ammonia are teaming up for a joint study to explore the construction of a large-scale, low-carbon blue ammonia production facility in the US Gulf Coast region. The facility, with a planned capacity of 1.2 to 1.4 Mt/yr, will cater to the rising global demand for low-carbon ammonia. The proposed project aims to capture about 95% of the CO2 produced during the manufacturing process, enabling the delivery of clean ammonia with a substantially reduced carbon footprint. For BASF, this facility will help meet the company’s demand for low-carbon ammonia and decrease the carbon footprint of its ammonia-based products. The partners aim to finish the feasibility study on this project by the end of 2023. Both BASF and Yara have committed to significant reductions in their CO2 emissions by 2030, with long-term goals to achieve net zero emissions by 2050.

Too fast, too efurious – The Alliance for Automotive Innovation, a US automakers trade group, representing General Motors, Volkswagen, Toyota Motor, Hyundai Motor, and others called the US EPA’s proposal to cut vehicle emissions by 56% through 2032 as “neither reasonable nor achievable”, Reuters reported Wednesday. The group has instead recommended adoption of standards to cut emissions by 40–50% in 2030 with continued increases through 2032. EPA’s proposed 2027–32 vehicle emissions standards were “a defacto battery electric vehicle mandate” the group noted, drawing attention to the fact that in 2022 only 6% of new light-duty vehicle sales were EVs. The EPA has stated it would respond to the group after July 5 when a period of public comments on its proposed rules ends.

Ever more biogas – Canada’s Clean Fuels Fund (CFF) has awarded EverGen Infrastructure C$10.5 mln to support the expansion of its renewable natural gas (RNG) project at the Pacific Coast Renewables (PCR) facility to produce approximately 185,000 gigajoules of RNG annually, news outlet Environment+Energy Leader reported Thursday. The capital expansion project will introduce anaerobic digestion capabilities to produce biogas, which will be upgraded to RNG and supplied to FortisBC’s gas network through a 20-yr off-take agreement. Additionally, the facility will produce liquid digestate fertiliser alongside the solid organic fertiliser produced through the anaerobic digestion process.

VOLUNTARY

That’s brilliant – Nature-based carbon capture firm Brilliant Planet has announced a partnership with professional services company WSP, under its African Maritime division, to develop a large-scale modular CO2 removal facility in Morocco. The 30-hectare facility, set to be the largest modular algae sequestration facility in the world, is due to be commissioned in 2024. WSP will develop the marine works infrastructure, including the seawater intake and outfall systems crucial for successful on-land algae cultivation. They will also provide expert guidance on environmental considerations and specialised coastal modelling to ensure responsible, sustainable construction practices. Brilliant Plant announced a similar partnership with consultancy Mott MacDonald earlier this year. The technology uses microalgae to permanently and quantifiably sequester carbon without relying on fresh water, with its open-air, pond-based systems able to grow vast quantities of microalgae on coastal desert land.

SCIENCE & TECH

Feelin’ Hajj Hajj Hajj – This year’s Hajj in Mecca, Saudi Arabia, could be one of the biggest and hottest in history. More than 2.5 mln people have made the pilgrimage — the first without pandemic restrictions — in a region heating twice as fast as the planetary average. Wet-bulb temperatures, a metric that reflects heat stress on the human body, in Mecca are nearly 2C hotter in Mecca than they were just 30 years ago — an increase largely attributable to climate change. The human impact of the climate-fuelled heat is exacerbated by the Islamic calendar and the demographics of Hajj participants. The dates of the Hajj follow the lunar calendar and as such, the pilgrimage has taken place in Saudi Arabia’s hottest months since 2017 and will continue to do so for the next three years. Hajj participants are also disproportionately elderly, having saved for decades to be able to afford to make the pilgrimage expected of every Muslim who is physically capable and has the financial means at least once in their lifetime. (Climate Nexus)

AND FINALLY…

German delusion – Almost 6 out of 10 German companies (59%) say they do not see themselves affected by the negative consequences of climate change today or in the future, according to the Climate Barometer survey by state development bank KfW. Only 41% of companies currently (15%) or prospectively (26%) see themselves affected. KfW writes that this could be because many companies have not yet dealt in-depth with the possible effects of global climate change on economic activities, with the planning horizon of smaller businesses only stretching over the next few years. In addition, many referred to their own experiences when assessing risks. “Since natural disasters have occurred rarely in the past, future extreme weather events could be systematically underestimated,” writes KfW. To increase resilience to extreme weather, 14% of companies have already implemented climate change adaptation measures, such as better insulation of buildings for heat protection or increased protection of facilities and buildings against flooding during heavy rain. At 57%, large companies are significantly more active in this regard. (Clean Energy Wire)

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