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TOP STORY

Verra culls wetlands from revamped REDD methodology, timeline for release slips

Carbon credit certifier Verra removed wetlands as an eligible land type in an interim update to its sweeping consolidated REDD methodology released on Wednesday, with the document revealing a delay to the expected publication of a final version.

INTERNATIONAL

Canada pledges fresh cash to UN climate finance fund, with most rich nations still quiet on contributions

Canada on Wednesday announced it would commit C$450 million ($340 mln) to the 2023 replenishment of the Green Climate Fund (GCF), but is only the fifth country to do so in the current round of funding as negotiations around climate finance grow tense and threaten to hinder wider UN negotiations this year.

Climate-related shareholder resolutions are up in 2023, but support for them is down

The number of climate-related shareholder resolutions globally has continued to rise during 2023’s proxy voting season, though there has been a slight decrease in the appetite to actualise these proposals, according to a new report.

Faster-than-anticipated uptake in solar and electric vehicles shows policies are working -IEA

Solar panels and electric vehicle technology have expanded more rapidly than anticipated, according to the International Energy Agency (IEA)’s annual update, signalling that governments’ positive policy action and increased ambition is translating into measurable results in deploying clean technologies that could help in tackling climate change.

AMERICAS

California cap-and-trade rulemaking July workshop notice causes “frenzy” in options market

California regulator ARB on Wednesday announced the date for the next public workshop to discuss potential updates to the cap-and-trade regulation, causing a “frenzy” in an otherwise quiet secondary market.

California dishes out compliance offsets to mine methane projects, while Quebec issuances resume

California Carbon Offset distributions fell significantly the past two weeks but remained close to 2022 levels, while Quebec also handed out credits eligible for its cap-and-trade programme, according to government data published Wednesday.

US govt assigns $300 mln to improve GHG accounting of nature-based CO2 sequestration

The US Department of Agriculture (USDA) on Wednesday announced the federal government will disburse $300 million towards improving the measurement and verification of GHG emissions and CO2 sequestration from climate-smart agriculture and forestry.

North American firms partner for ocean-based carbon removal facility

A pair of carbon capture firms on Wednesday announced they will pilot an ocean-based CO2 removal facility in Canada as they seek to validate the technology for roll-out across the country.

ASIA PACIFIC

Japanese firm signs exclusive agreement for offset supply from Brazilian project developer

A Japanese climate start-up has secured an exclusive offset sales partnership with Ecosystem Regeneration Associates (ERA), a Brazilian company that offers carbon credits through biodiversity conservation projects.

NZ Cabinet approves ETS rule change to allow all forms of carbon removals to generate carbon credits

New Zealand’s Cabinet has approved a rule change to the country’s emissions trading scheme to recognise all forms of carbon sinks for carbon credit generation, rather than just forestry, although it will be sometime before it is implemented, Climate Change and Environment Minister James Shaw has told local media.

AgriProve soil carbon ACCU project portfolio reaps first rewards, promises more to come

After years of waiting, Australian carbon project developer AgriProve Solutions has been issued Australian Carbon Credit Units (ACCUs) from one if its hundreds of soil carbon projects, it announced Wednesday.

VOLUNTARY

INTERVIEW: Startup seeks broader revenue base than carbon for nature projects in Africa

A Berlin-based startup is approaching several sub-Saharan African governments with the aim to develop nature-based conservation and restoration projects, seeking to tap multiple revenue streams including carbon finance to deliver more resilient outcomes.

Blockchain-based platform announces forward units for hemp carbon credits

A UK-based climate technology company on Wednesday revealed the availability of its first batch of forward carbon credits derived from its hemp farming methodology, with the platform imposing several buyer restrictions to foster greater internal GHG abatement.

Fund launches to facilitate early purchases of CDR credits

A San Francisco-based company on Wednesday announced the commencement of a fund to purchase discounted carbon dioxide removal (CDR) credits and close the monetary gap for suppliers.

The Amazon savannah: Deforestation, climate change, and fire threaten to irreversibly alter world’s largest rainforest, study warns

The Amazon rainforest could irreversibly transition to savannah or grassland due to the compound effects of deforestation, climate change, and more fires, a new study warns.

EMEA

Euro Markets: EUAs give up early gains after Shell confirms North Sea field restart, TTF plunges

European prices gave up early gains on Wednesday, trading higher in the morning amid bullish sentiment before falling back after gas prices plunged on news that a key North Sea field would restart this weekend after an extended maintenance programme.

South Africa’s 2030 renewables goal looks out of reach -analysts

South Africa’s goal to achieve 41% renewable energy in its power mix by 2030 looks increasingly difficult, analysts said, with projections showing that only 20% will be carbon-free by the end of the decade.

SHIPPING

Capturing carbon onboard ships could be viable mid-term solution to lower emissions -industry

Capturing carbon onboard ships could be a mid-term step to reduce the maritime sector’s greenhouse gas (GHG) emissions while zero-emission fuels are not yet commercially available, according to a  panel of industry experts speaking on Wednesday, though one panellist warned that the sector’s carbon accounting needs to improve before such technologies are adopted .

BIODIVERSITY (FREE TO READ)

EU Parliament adopts position on nature restoration law, saving divisive bill

The European Parliament on Wednesday voted to adopt a position on a bill to restore at least 20% of the bloc’s sea and land areas by 2030, rescuing the divisive text after many right-leaning members had fought to kill it outright.

Two-thirds of world’s listed firms exposed to ocean health, says expert

Around two-thirds of globally listed companies are exposed to ocean-based risk in the trillions of dollars over the next decade, according to an expert speaking during a webinar on Wednesday.

COMMENT

Viridios AI analysis reveals voluntary carbon price drivers

It’s been a rollercoaster ride for carbon markets over the past 12 months, with policy changes and ongoing scrutiny seeing some of the most historically stable voluntary carbon credits facing price pressure. The latest analysis from Viridios’ AI-powered carbon credit pricing platform VAI shows that despite some  negative market sentiment certain methodologies and geographies continue to trade at a premium.

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Premium job listings

• *Senior Engineer, Oil & Gas Sector with Carbon Market and Upstream Emission Reduction Project Expertise, ICA-Finance – Oslo
• Senior Program Officer, REDD+ Remote Sensing and GIS Analysis, Verra – Remote (Worldwide)
• Senior carbon/commodities trading analyst, RepuTex Energy – Melbourne
• Carbon Development Director, Impact Carbon – Remote/Flexible Location
• Manager, Energy and Industrial Innovation, Verra – Remote (Worldwide)
• Senior Program Officer, Industrial Innovations, Verra – Remote (Worldwide)
• Senior Program Officer, VCS Methodologies, Verra – Remote (Worldwide)
• Director, Africa Carbon Markets Initiative (ACMI), Global Energy Alliance for People and Planet (GEAPP) – Nairobi

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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

Bated breath – The UAE is expected to outline its agenda for COP28 at a ministerial meeting in Brussels this week after a conservative update of its own emissions targets, the FT reports. The petrostate pledged to cut absolute emissions by 19% from 2019 levels in the third update to its commitment under the Paris Agreement to limit global warming. The appointment of Sultan Al-Jaber to head up the UN climate summit has been controversial as he will remain in charge of the state oil firm during the conference. In recent speeches, Al-Jaber has highlighted the need for a tripling of renewable energy capacity, increased energy efficiency, and further hydrogen production, as well as cuts in methane emissions by 2030, stopped short of calling for a fossil phaseout.

AMERICAS

Money for nothing – E&E News documented on Tuesday that only one out of the 10 largest utilities in the US was planning to take advantage of tax credits to install carbon capture technology over choosing to shut down fossil-based power generation. An industry not comfortable with risks involved with new technology, prohibitive costs in switching to hydrogen-fired gas power, or installing carbon capture technology, and skepticism on the technology readiness were some of the reasons experts cited for the choice of those utilities that were polled to mothball operations rather than utilise federal subsidies offered. The US EPA continues to have high hopes for CCS technology and its export potential, the report noted.

Clean up crew – US utility DTE Energy announced plans to retire its coal fleet by 2032 and invest $11 bln over the next decade in clean energy, in keeping with its plans to achieve net zero by 2050, Reuters reported Wednesday. The company will fully retire its Monroe coal plant by 2032, advancing its plan by three years, and repurpose its Belle River coal plant to run on natural gas by 2026. On the clean energy side of the equation, DTE aims to develop 15,000 MW of renewable energy by 2042, the report noted.

PV push – The Canadian government will invest C$160 mln ($121 mln) into nine solar PV projects in Alberta totalling 163 MW and 48 MW of battery storage. The federal funding was awarded through the Department of Natural Resources’ C$1.56 bln Smart Renewables and Electrification Pathways Program (SREPs) which supports renewable energy and grid modernisation projects. The 2023 budget, which introduced tax credits for renewable energy investments in March, expanded SREPs by a further C$3 bln. The nine projects range in size between 5MW and 65MW.  (PV Tech)

EMEA

Hydrogen hook-ups – Germany has unveiled plans to connect industrial hubs near the Rhine, the south and the east of the country with 11,200 kilometres of hydrogen pipelines in an effort to cut emissions from its EU ETS-covered manufacturers, according to preliminary plans presented Wednesday by the economy ministry ahead of a hydrogen strategy due in Q3. The grid plans foresee connections to major industrial centres, storage facilities, power plants, and import corridors. (Bloomberg)

Support for smalls – German Finance Minister Christian Lindner is planning a raft of domestic measures designed to boost climate-friendly investments and competitiveness that the government estimates will ease the tax burden on companies and households by about €6 bln a year. The focus of the package of nearly 50 measures is on small and medium-sized businesses including a new subsidy mechanism to help such companies speed the process of cutting emissions. (Bloomberg)

Dash for cash – The member state-owned European Investment Bank said it will devote an additional €45 bln to financing projects to help fund the bloc’s REPowerEU programme to end dependence on fossil-fuel imports – especially from Russia – by 2027. It follows a €30 bln package announced last October, with the bank saying the new funding would spur more than €150 bln in knock-on financing while also helping procure critical raw materials.

Low output – Slovakian factory emissions dropped by 20% in 2022, which can be largely attributed to high energy prices following Russia’s invasion of Ukraine, domestic media reported. Carbon analysts said this week in a report that they do not expect industrial demand to see a strong rebound for the remainder of 2023. (EurActiv)

Eco design – MEPs in plenary also adopted a report prepared by the committee for environment (ENVI) on revising the EU’s ecodesign framework for sustainable products. According to the text, the lifetime of a product should not be limited through design features, software updates, consumables, spare parts and accessories must also be available for an appropriate period, and a new “product passport” would be set up to increase transparency. The text asks the Commission to prioritise the setting of sustainability requirements for a number of product groups, such as iron, steel, aluminium, textiles, furniture, tyres, detergents, paints, lubricants and chemicals. MEPs also want a specific ban on destroying unsold textiles and electrical and electronic equipment.

Energy efficiency – EU lawmakers set new savings and consumption targets on Tuesday, approving a deal already reached with the Council. According to the new rules, member states will have to collectively ensure a reduction in energy consumption of at least 11.7% at EU level by 2030, or 1.5% per year on average. The annual energy savings will begin with 1.3% in the period until the end of 2025, and will progressively reach 1.9% in the last period up to the end of 2030. MEPs insisted that the scheme should in particular cover the public sector and called on member states to renovate at least 3% of public buildings each year into nearly-zero energy buildings or zero-emission buildings. The directive also establishes new requirements for efficient district heating systems.

ASIA PACIFIC

New hydrogen plant – Mining giant Rio Tinto has said it would build a hydrogen plant in Gladstone, Queensland along with Japan’s Sumitomo Corporation to minimise carbon emissions at its Yarwun alumina refinery, according to Reuters. The new facility will cut Yarwun’s CO2 emissions by about 3,000 metric tonnes per year while producing about 6,000 tonnes of alumina annually. Under the current plan, Sumitomo will be responsible for operating the electrolyser and supplying hydrogen to the miner. The project has secured A$111 mln in funding from the Australian Renewable Energy Agency.

Pushback – Significant numbers of companies and their associations from heavy emitting sectors did not support ambitious reform of Australia’s Safeguard Mechanism, despite increasing top-line statements supporting action on climate change, analysis by climate think-tank Influence Map said. The research, based on an analysis of 85 consultation responses from 42 influential companies and industry associations, exposes a clear discrepancy between public statements and actual engagement with climate policies, the group said. Out of the evaluated responses, a significant 62% expressed an overall negative or oppositional stance towards ambitious reform, while only 19% were supportive overall. In contrast, 92% of the entities that negatively engaged had previously expressed top line support for either the net-zero by 2050 target, the Paris Agreement, or the need for climate policy in Australia, in the past 12 months.

VOLUNTARY

Carbon criteria – Carbon management firm Carbon Direct, in collaboration with tech giant Microsoft, on Wednesday announced the release of the 2023 edition of the Criteria for High-Quality Carbon Dioxide Removal. In a press release, the companies said the 2023 edition advances the work done by Carbon Direct and Microsoft since the inaugural Criteria were introduced in 2021 to address the quality challenges in the voluntary carbon market through the development of rigorous, science-based standards for CO2 removal projects. Significant updates include the enrichment of environmental justice criteria for carbon removal projects and the development of guidelines specific to enhanced rock weathering (ERW) – a process that converts CO2 into bicarbonate by spreading crushed silicate rocks on agricultural fields, has great potential to scale quickly, but also poses risks due to heavy metals and other contaminants found in silicates. The Criteria are designed to provide carbon removal project developers with regularly updated guidance to ensure project quality, and to offer buyers of carbon removal credits a starting point for evaluating the quality of their carbon credit portfolios.

Miners allowed – AirMiners has announced the launch of its pilot Kiloton Fund, a facility aimed at closing the funding gap for carbon removal startups. A diverse group of investors has contributed a total of $250,000 to buy carbon credits from startups at a discounted rate, providing them with immediate revenue while creating an attractive opportunity for investors when these credits are sold at full price later. The initiative has received a positive response from industry insiders, who believe the Kiloton Fund can accelerate the commercialisation of carbon removal technologies and foster their development and advancement. Over the past two years, AirMiners has graduated 95 startups from its carbon removal accelerator, raising $90 mln in venture and grant funding. AirMiners “is the place for entrepreneurs, engineers, scientists, and designers working to mine carbon from the air”.

Dirty deeds – UK supermarket chain Morrisons is using data from Downforce Technologies to measure carbon levels in soil at five of its supplier farms, The Grocer reports. The goal is to increase stored carbon and make Morrisons the first UK supermarket to be supplied by net zero British farms by 2030, a pledge the firm made in 2021. Downforce uses machine learning and multiple data sources to monitor changes in soil carbon. The data will help Morrisons identify sustainable farming practices for each site. The supermarket chain works directly with 3,000 farmers. According to Downforce, a global 1% increase in soil organic carbon on agricultural land could sequester 84.9 billion tonnes of carbon, nearing the 2030 global target reduction in GHG emissions.

AND FINALLY…

Hop-ping on the carbon-negative bandwagon – Gipsy Hill Brewery in south London has created the world’s first carbon-negative beers without using offsets. The brewery’s new Swell Lager and Trail Pale are made using barley grown through regenerative farming and recaptured hops, which means each pint removes more CO2 from the atmosphere than it produces. The beers have carbon footprints of -40 grams of CO2e for Swell Lager and -30g for Trail Pale per pint, while a typical pint of commercial lager generates at least 350g of CO2. The brewing process uses certified regenerative barley from Wildfarmed, which employs farming practices that sequester more carbon in the soil than they release. The barley is combined with recaptured hops, which are removed after fermentation from a previous batch of beer and reused. Zevero, a carbon accounting firm, independently analysed the carbon lifecycle of the beers, from ingredient growth to packaging disposal.

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