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TOP STORY

Experts sound the alarm on avoided emissions in California LCFS

A panel of experts told California regulator ARB’s Environmental Justice Action Committee (EJAC) meeting on Monday that avoided emissions from dairy digesters were being overcounted, overcompensated, and are offered perverse incentives under the state’s Low Carbon Fuel Standard (LCFS).

ASIA PACIFIC

NZ Market: NZU price rises nearly 30% following government backtracking on price settings

The price for spot NZUs rose by nearly NZ$12 on Monday, following the government agreeing in court to revisit the ETS price controls and settings.

Australia to hammer out sectoral decarbonisation plans on way to net zero

Australia on Tuesday announced it will start work to develop sector-specific emissions reduction plans for large parts of its economy that will feed into its work on setting a 2035 target and its strategy to reach net zero by mid-century.

Australia Market Roundup: Soil carbon experiencing its “solar moment”, AgriProve says, as new reef credit is in the works

Australia’s largest soil carbon project developer expects its projects to yield some 80,000 Australian Carbon Credit Units (ACCUs) in the coming months, saying the method is experiencing its “solar moment”.

China thermal power production continues to grow in June, Q2 GDP misses forecasts

China’s thermal power generation continued to grow at a double-digit pace in June amid rising electricity demand, even as the country’s recent economic performance fell short of market expectations, government data showed Monday.

EMEA

Carbon pricing risks tilting corporate focus towards short-lived, less effective climate solutions -ECB

Regulations compelling firms to reconsider their carbon management policies, including greenhouse gas pricing mechanisms, could lead to a reduction in net emissions, though they may also discourage green innovation and promote only short-term or less effective abatement strategies, according to research by the European Central Bank (ECB).

Euro Markets: EUAs extend sideways trading channel as August supply cut offsets gas weakness

European carbon prices posted a third successive modest gain as the week began, with the market trading largely sideways on Monday and extending the trading channel that has prevailed for the last ten days as traders continued to anticipate the annual reduction in auction volumes in August, offsetting recent weakness in gas prices.

AMERICAS

RGGI Market: RGAs climb to year highs, seen catching WCI market tailwind

RGGI Allowance (RGA) values skipped higher in heightened transaction activity mid-week, in sync with the rally in California Carbon Allowance (CCA) values and broader macro upbeat sentiment after a softer-than-expected US inflation print.

British Columbia proposes tighter large emitter programme benchmarks, credit usage limits than Canadian peers

The British Columbia government will impose more stringent emissions benchmarks and usage limits on performance credits and offsets than other Canadian jurisdictions as it commences an output-based pricing system (OBPS) for industrial facilities next year, according to a recent provincial plan.

VOLUNTARY

Startup raises $25 mln to build durable carbon removal registry 

A software startup has raised $25 million to build a registry exclusively focused on durable carbon removals that is set to feature a revenue model to guard against giving perverse incentives to over-credit.

VCM Report: Carbon credit prices drift lower amid thin trade, doubts over government action

Carbon credit prices generally edged lower over the past week amid a summer lull in the market although expectations of investment in the voluntary sector remained high.

US orphan oil well sealing programme launched by Canadian carbon credit investor

A Canadian carbon credit investor has begun its orphaned oil and gas well sealing endeavour using an American Carbon Registry (ACR) methodology, with a partner organisation plugging dozens of wells in the US as part of the project, the company announced on Monday.

Offset ratings agency extends services to Australian platform

A carbon credit ratings agency has partnered with an Australian climate markets platform to integrate its project ratings and quality assessments in the platform infrastructure.

INTERNATIONAL

EU unveils clean energy deals with Latin America, Caribbean in pivot west

The EU announced a slew of clean energy investments with Latin American and Caribbean nations on Monday, the first day of a two-day leaders’ summit that provides a further signal of the 27-nation bloc’s pivot away from Russia and China.

BIODIVERSITY (FREE TO READ)

First African plastic project registered with Verra

A plastic collection and recycling project in Senegal has been registered with Verra, the first on the African continent to qualify for earning the standard’s Waste Collection Credits (WCCs) and Waste Recycling Credits (WRCs).

COMMENT

ECOSYSTEM MARKETPLACE: “Carbon cowboy” pieces get clicks, but at the risk of ignoring what indigenous communities are actually saying

The climate finance space is at risk. Confronted with an onslaught of agenda-driven media coverage aiming to discredit one of the largest sources of funding available for forest protection, mechanisms like REDD+ and voluntary carbon markets could be unfairly discredited to the point of losing momentum and support at a critical time for climate action. REDD+ credits, specifically projects financed through the Voluntary Carbon Market (VCM), have faced increasing criticism in the media over the past year.

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Job listings this week

• *Senior Program Officer, Forest Carbon Innovation Operations, Verra – Remote (Worldwide)
• *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
• *Manager, Energy and Industrial Innovation, Verra – Remote (Worldwide)
• *Senior Program Officer, Industrial Innovations, Verra – Remote (Worldwide)
• *Senior Program Officer, VCS Methodologies, Verra – Remote (Worldwide)
• Associate Director (Clean Energy Transition), China Climate Hub, Asia Society Policy Institute – New York/Washington/Remote
• Head of Carbon Sales, BURN – Kenya
• Carbon Technical Officer, BURN – Kenya/Nigeria/Mozambique Preferred
• Co-Head ESG Specialist, Sustainability Consultancy – Johannesburg (Hybrid)
• C&I Business Development Manager, Renewable Energy, Investment Managers – Ghana
• Project Developer, Renewable Energy Company – Cape Town
• Technical Engineer, Solar and BESS, Investment Managers – Nairobi

*Premium listings

Or click here to see all listings

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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

Come together – Visiting Beijing, US climate envoy John Kerry on Monday said it was “imperative that China and the United States make real progress” in the four months before U.N.-sponsored climate talks begin in Dubai, as waves of extreme heat and rainfall hit large parts of the globe. Kerry urged China to partner with the United States to cut methane emissions and reduce the climate impact of coal-fired power, with the two sides aiming to restore relations following a suspension in talks last year, reports Reuters.

EMEA

Technically, that’s four… – The Polish government on Monday filed another three legal challenges to the European Court of Justice over the EU’s Fit for 55 package, after lodging a complaint on Friday about the bloc’s LULUCF policy. Climate Minister Anna Moskwa tweeted that her administration is fighting the EU’s 2035 ban on internal combustion engine vehicles, the increased emissions reduction target, and a plan to slash the number of free EU ETS allowances received by industry. “EU proposals may threaten our country’s energy security, which we cannot agree to. Does the EU want to make authoritarian decisions about what kind of vehicles Poles will drive and to increase energy prices in Poland? The Polish government will not allow Brussels to dictate,” Moskwa added. The minister has threatened to lodge one case per week with the ECJ over the coming months, as Poland ramps up its campaign against the EU’s landmark climate and energy package. Poland, which still relies on coal for a majority of its power needs, making it one of the EU’s biggest emitters, has been the only country that has consistently opposed the various aspects of Fit for 55, arguing the bloc failed to conduct a proper analysis of market and social consequences of the wide-reaching legislative package. Warsaw has previously filed a number of legal challenges against the EU’s climate and energy policies, including several targetting the EU ETS, but it has seldom been victorious in court.

Not so neutral – A draft report commissioned by the German government reveals that the country’s current and planned climate policies will not be sufficient to reach the net zero emissions target by 2045, Der Spiegel reports. Research institutions’ calculations of future emissions scenarios show that, even in the best-case scenario, Germany would still have net emissions of 160 Mt CO2e per year by 2045.  Germany’s 2030 emissions target is currently out of reach, but a recent policy package, on which Carbon Pulse has reported, aims to narrow the gap by significantly accelerating the pace of emissions reductions. In order to do this, Berlin has called for additional efforts across all government ministries, in particular those overseeing sectors most responsible for the shortfall.

Adapt weakness – The UK government’s climate adaptation plan has been condemned as “very weak” by experts, who say not enough is being done to protect lives and livelihoods. Responding to the document, which was leaked to The Guardian, one highlighted its failure to adequately protect people in the UK from extreme heat. Another expert said there was a “yawning gap” in measures to restore nature. The plan is expected to be published on Tuesday by the environment ministry, which is required by law to produce a plan every five years.

Modular missive – The UK government is due to launch its competition for small modular reactor (SMR) technology, which it says could result in billions of pounds of public and private sector investment in SMR projects. From Tuesday, companies can register their interest with Great British Nuclear (GBN) to participate in the competition to secure funding support to develop their products. This could result in billions of pounds of public and private sector investment in small modular reactor (SMR) projects in the UK. The government is also due to announce a £157 mln grant funding package to help nuclear technology innovation.

A whole lot of minus numbers – Finnish datacentre developer, REMOV, plans to build a 7.2MW “carbon-negative” datacentre ecosystem with a total energy capacity of 150 MW, fully powered by renewable electricity. The data centres will feature an impressive Power Usage Effectiveness (PUE) rating of 1.1 and an Energy Flow Ratio (EFR) of 1.0, indicating high energy efficiency. Additionally, 90% of the heat generated will be captured for use in a local district heating system run by Seinajoki Energy. This heat recovery could substantially meet the city of Seinajoki’s heating needs, thereby making the facility carbon-negative. REMOV’s datacentres, which have not experienced power disruptions in two years, are modularly designed to cater to the needs of cloud service providers and provide seamless access to APAC markets via tripled data fibre connection backbones and direct links to the Nordic Sea Cable. (Datacentre Forum)

UAE union– Abu Dhabi-based Mubadala Energy and the Abu Dhabi Future Energy Company (Masdar) have partnered to explore and possibly engage in opportunities related to decarbonisation and energy transition. The collaboration will use Mubadala Energy’s technical capabilities and Masdar’s expertise in decarbonisation and energy transition technologies. The partnership will focus on Mubadala Energy’s core regions, MENA and Southeast Asia, and other mutually interesting areas. The collaboration will cover decarbonising or improving energy efficiency of oil and gas assets, potential joint investments in new energy and lower-carbon projects, and emissions management initiatives.

ASIA PACIFIC

Busy – Pertamina, Indonesia’s state-owned oil and gas company, signed a total 13 new MoUs related to its target to reach net zero carbon emissions by 2060 at a conference late last week, it announced over the weekend. Many of the agreements related to implementation of renewable energy, hydrogen, and ammonia production, including one on the commercialisation of carbon at a 40MW geothermal facility. It also signed an MoU with Mitsui on CCUS implementation in Central Sumatra, and two other CO2 capture and utilisation agreements with AirLiquide as well as with Japan’s Jogmec and Mitsubishi. Details on each agreement were scarce, though Jogmec is leading the work to develop CCUS carbon crediting methodologies for Japanese companies.

Knowledge sharing – Miner BHP and steel giant China Baowu have teamed up with Monash University to form an industry knowledge centre that aims to speed up the deployment of technology capable of reducing CO2 emissions from steel production, linking academia and industry partners in China and Australia to share knowledge, according to a company statement released Sunday. BHP will provide $8 mln over three years for the collaboration, while China Baowu will conduct the piloting and plant-scale trials of potential carbon abatement technology, the statement said.

Unchanged commitment – Saudi Arabia has said it remains committed to securing oil supplies for Japan and will continue cooperating with the East Asian country on clean hydrogen, ammonia and recycled carbon fuels, after Japan’s Prime Minister Fumio Kishida held meetings with Saudi leaders on Sunday, Reuters reports. Resource-poor Japan imports nearly all the crude oil it consumes, with oil from the kingdom accounting for around one-third of the total, according to Japan Times.

AMERICAS

The uninsurable era – Two more insurance companies – Farmers and AAA – have ceased selling homeowners insurance in Florida due to climate change risks, pushing the region towards an uninsurable era and potentially limiting homeownership to the extremely wealthy. The move underlines a trend where insurers are leaving risky markets or underpaying homeowners in various coastal regions. “I hate to say it,” Fort Myers real estate agent Isabel Arias Squires told Politico on Sunday. “Only very, very, extremely wealthy people will be able to rebuild.” Despite the climate risks, these insurance companies continue to insure and invest in the fossil fuel extraction industry, a significant contributor to climate change. The Senate Budget Committee is investigating seven major insurance firms for their contribution to climate change through their underwriting and investments. Less than 1% of Vermont homes and less than 2% of New York housing units have flood insurance coverage, leaving homeowners exposed to extreme financial risks from flooding events. “The bottom line is, it just sucks,” Samantha Medlock, senior counsel on the House Select Committee on the Climate Crisis prior to its disbanding by Republicans in January, told Politico. “Some areas are no longer safe to occupy because they are breathtakingly risky to life, property and first responders.”

Emissions to transmission – Limited transmission line expansion in the US could cut GHG reductions in half, by slowing the capacity for renewables to take over for fossil fuel generators, a Princeton University report found on Thursday. The US is on track to reduce its carbon emissions by between 37%-41% from 2005 levels to 4 bln tonnes of CO2 in 2030, short of President Joe Biden’s 50%-52% goal, the study showed. Gains in solar and wind capacity will be held back by unless transmission line growth is expanded by 50%, according to the researchers. (Utility Dive)

Small refiner rebuttal – A group of US refiners plan to file a lawsuit challenging the Biden administration’s rejection of waivers to exempt oil refiners from biofuel blending mandates which has left some on the hook for hundreds of millions of dollars, Par Pacific told Reuters on Monday. The US EPA which has the authority to issue the waivers, on Friday denied 26 exemption requests from 15 small refineries in a move that corn farmers and ethanol producers welcomed. Refiners including Par Pacific Holdings plan to join together in a legal challenge against the decision, a Par Pacific spokesperson told Reuters. “We believe EPA’s decision is arbitrary, capricious, and contrary to law,” said Ashimi Patel with Par Pacific.

Xpanding LCFS – Carbon market exchange operator Xpansiv announced broad participation in the first week of its new Low Carbon Fuel Standard (LCFS) spot contract launched July 10 on its Xpansiv CBL marketplace, in an email update on Monday. The first week volume totaled just under 54,400 LCFS credits, with trades executed between $71.50 to $72 involving Anew Environmental, Skyview Finance Company, SRECTrade, and AQC Environmental Brokerage Services, the statement noted. LCFS futures contracts are available on ICE, and the Nodal Exchange also offers a physically-delivered LCFS futures contract.

VOLUNTARY

Not dissenters – The 80-odd group of employees of carbon credit developer and intermediary South Pole have responded to what they see as a mischaracterisation in an article by investigative journalism outfit Follow the Money (FTM), insisting there is no ‘dissent’ among employees and stressing how keen the staff is to work constructively with the company’s management to set new market standards of impact delivery. This is several months on from FTM’s investigation on the extent of over-crediting at the company’s Kariba REDD forest protection project in Zimbabwe. Again drawing on anonymous current and former South Pole staff sources and leaked internal correspondence, FTM on July 14 reported that more than 80 of the company’s 1,000+ staff in February wrote to South Pole’s management expressing deep concerns about the direction of the company’s business and proposed setting up a task force to “re-centre purpose and impact in South Pole’s decision-making”.

Pharma forks out – AstraZeneca, in collaboration with Biofílica Ambipar and IPE (Instituto de Pesquisas Ecologicas), has committed over BRL 300 mln to the ARR Corredores de Vida Project for forest restoration in Brazil’s Atlantic Forest. The project plans to plant 12 mln trees across more than 6,000 hectares and create 400 jobs. The initiative aims to create ecological corridors by restoring native Atlantic Forest vegetation and enhancing connectivity between existing forest fragments in the Pontal do Paranapanema region, Sao Paulo. The project forms part of AstraZeneca’s $400-mln global AZ Forest project, targeting the planting of over 200 mln trees worldwide by 2030 as a part of its sustainability efforts and zero-carbon ambition, in alignment with the Paris Agreement’s 1.5C warming limit.

The need for seaweed – King Tide Carbon Canada, a biosynthetic algae and seaweed carbon sequestration-as-a-service company, has signed a non-binding MoU with Springtide Seaweed to form a joint venture aimed at developing carbon sequestration and removal services through sustainable kelp farming. Springtide Seaweed, one of North America’s largest organic kelp farms, cultivates multiple species and provides nursery and farming technology services to kelp farms globally. The two entities will work together to optimize kelp species, cultivation, and harvesting techniques for maximal carbon sequestration and removal. The joint venture will run for two years from the execution of definitive agreements, during which Springtide Seaweed will grow, cultivate, and harvest kelp in Maine for or on behalf of King Tide. They said they are working towards a long-term agreement.

SCIENCE & TECH

SPARCCLE and shine – A new study led by the International Institute for Applied Systems Analysis (IIASA) proposes ways to better incorporate the adaptive capacity to climate change into research. The study argues that current climate modelling tools fail to account for the uneven distribution of adaptation capacities worldwide, often leading to an underestimation of risks. The researchers suggest improvements to the Shared Socioeconomic Pathways (SSPs), a widely-used set of scenarios in climate impact modelling. They propose concrete ways to quantify adaptive capacity, ensuring the models reflect the reality that not all societies will adapt to climate change equally. The study provides guidance on model integration for assessing climate change risk and discusses future research directions. The approach could lead to more accurate risk estimates and policy advice. A data explorer has also been developed to visualise different global futures and indicators of adaptive capacity. The research will be used in the upcoming IIASA-led SPARCCLE project on socioeconomic risks of climate change in Europe.

AND FINALLY…

Well, the wells are not well – US states are struggling to take advantage of federal funding to cap and remediate orphaned wells, E&E News reports. There may be as many as 800,000 abandoned oil and gas across the country releasing toxic, cattle-killing pollution into soil and groundwater and heat-trapping methane into the atmosphere. With $660 mln of federal funds now available, states now have incentives to seek out and inventory orphaned wells (thereby increasing the official tally), but higher-than-expected labour costs and confusion over well remediation prioritisation, methane monitoring, and other requirements attendant to the funding are also slowing the process of cleaning up the toxic mess left behind by over a century of polluting fossil fuel companies. “It’s a constant game of catch-up,” Jason Simmerman, the Ohio DNR’s orphan well programme manager, told E&E News. “We find new wells every week in the state of Ohio.” (Climate Nexus)

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