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TOP STORIES

Tanzania faces protests over ‘unprecedented’ fees for voluntary carbon projects

A row has erupted in Tanzania after the Ministry of Environment imposed a raft of hefty new fees on voluntary carbon projects that developers warn will derail current activity and discourage future investment in the African country’s nascent market.

Tensions rise on reports Liberian govt to award UAE’s Blue Carbon credit rights to 1 mln hectares of key forest land

Tensions are said to be escalating over reports that the Liberian government is in talks with UAE-based Blue Carbon to grant it access to a million hectares of crucial forest land to develop for carbon credit generation.

Zimbabwe’s Kariba REDD+ project “very much operational”, developer says following reports of suspension

The Kariba REDD+ project in Zimbabwe is “very much operational”, one of the scheme’s developers told Carbon Pulse late Wednesday following reports that the voluntary carbon initiative’s operator had halted work due to regulatory uncertainty.

AMERICAS

Brazil needs $80 bln per year to reach net zero by 2050 -report

A report from an international consultancy group says Brazil will need to invest $80 billion per year to control its emissions, largely driven by illegal deforestation, and that carbon markets have an important role to play.

VOLUNTARY

US CFTC voluntary carbon market convening hears criticism of standards

US federal government regulators heard pointed criticism of voluntary carbon standards, as agency officials defended their record and suggested greater participatory roles at the Commodity Futures Trading Commission’s (CFTC) second voluntary carbon markets convening on Wednesday.

First African direct air capture plant aims to generate credits from 2024

Africa’s first direct air capture (DAC) and storage facility will begin operations in 2024 at an annual scale of 1,000 tonnes, with the developers partnering with a voluntary carbon removals certifier and platform to generate commercial credits in the same year, the companies involved announced Wednesday.

Carbon standard launches methane reductions methodology for beef producers

A voluntary carbon market standard has approved a methodology co-developed by one of the world’s biggest food trading companies that will enable beef producers to measure methane emissions reductions from altering the diet of cattle and receive credits for the resulting mitigation.

New platform combines dynamic baselines with digital MRV to keep watch on forestry

A new platform plans to provide an up-to-date, detailed, and verified snapshot of the health of a forest by integrating multiple technologies at the same time.

AI-powered clean power startup raises almost $6 mln in seed funding, inks deal with prominent carbon removals firm

A San Francisco-based startup that uses generative AI to help companies transition to clean power has secured nearly $6 mln in seed funding and has signed an agreement with a prominent carbon removals firm.

Winners of UN-sponsored clean cooking innovation challenge to improve carbon finance access, credit issuance

The winners of a UN-sponsored clean cooking innovation challenge have been announced, with four “promising” solutions selected to help ease developer access to finance and streamline carbon credit issuances.

EMEA

EU lawmakers back electricity market reform to protect citizens

Members of the European Parliament’s cross-party industry committee (ITRE) on Wednesday backed the European Commission’s proposal to tackle high energy prices and energy supply issues.

EU co-legislators fail to strike a deal on F-gas regulation

The European Parliament, Council, and Commission late Wednesday failed to reach an agreement on the regulation of Fluorinated Greenhouse Gases (F-Gases), in what was expected to be the final climate-related trilogue negotiation before the summer break.

Euro Markets: EUAs break out of 11-day channel to test new technical resistance ahead of August supply cut

European carbon prices broke out of the narrow range that they had moved in for 11 days on Wednesday afternoon, following sharply-higher natural gas due to French nuclear and North Sea gas outages and combined with what looks like early positioning ahead of the annual 50% cut in EUA auction supply.

EU parliamentarians signal dismay at scrapping of EU-wide Sovereignty Fund for net zero industry

The EU’s newly-proposed STEP funding platform for clean and digital technology will not meet the needs of the bloc’s industry amid increased competition from the US and China, lawmakers from across the political spectrum told a European Parliament hearing on Wednesday.

Saudi Aramco VC arm takes stake in AI-powered emissions monitoring startup

Wa’ed Ventures, the venture capital arm of Saudi Arabian oil company Aramco, has made a strategic investment in a startup that uses AI to offer real-time emissions intelligence for heavy industries.

EEX EU carbon futures volumes plunge 59% in H1 2023

Trade in EUA futures on Germany’s EEX platform plunged by 59% in the first half of the year even as the volume of business in power surged by 12% and gas grew by 20% overall, the bourse reported on Wednesday.

ASIA PACIFIC

Key aspects of closely-watched integrated farm method yet to be resolved, Australian govt official says

The Australian government expects a draft of the hotly anticipated Integrated Farming and Land Management (IFLM) methodology to be released later in the year, but crucial details have yet to be resolved.

Biochar could be huge in Australia, but dedicated ACCU method is a while off, industry group says

An Australian biochar industry could be worth A$1-5 billion by 2030, however a dedicated method to earn Australian Carbon Credit Units (ACCUs) from the practice is at least two years away, a conference heard Wednesday.

Australian cattle farmers cautious on asparagopsis over animal and human health concerns

Cattle farmers have expressed their concerns over using asparagopsis feed additive as a way to cut methane emissions from their livestock, urging the emerging industry to take the necessary time to thoroughly scrutinise the process.

INTERNATIONAL

Converging markets seen to boost voluntary demand, investment opportunities

The push for higher-quality carbon credit methodologies is driving increasing convergence between compliance, voluntary, and Article 6 markets that is creating bigger demand and greater opportunities for investors, a conference heard Wednesday.

BIODIVERSITY (FREE TO READ)

FEATURE: Biodiversity crediting to imminently face up to the challenges of bundling and stacking with carbon

Biodiversity crediting will soon have to face up to the challenge of when to bundle or stack mitigation outcomes alongside carbon, experts have told Carbon Pulse, with the sometimes controversial practice expected to come to the fore of the conversation as the nascent nature market looks to scale.

Data startup partners with voluntary carbon standard to launch biodiversity certificates by year-end

The Plan Vivo Foundation and biodiversity data startup Pivotal have announced a new partnership as they aim to deliver their first biodiversity certificates by the end of 2023, the companies announced Thursday.

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WEBINAR

Washington Carbon 101 – The Washington Cap-and-Invest programme’s June auction didn’t just sell out, it overshot the cost containment price, triggering a reserve sale. So what should you look for in the Washington Carbon Allowance auctions on Aug. 9 and 30, and what will the results of these auctions mean for you? In this free webinar, ClearBlue Markets will answer your questions and provide the insights you need to navigate these emerging marketplaces confidently. Join our panel of experts on Aug. 1 (11:30 AM-12:30 PM PST / 2:30-3:30 PM EDT) to understand your compliance obligations and other potential impacts on your business. Register now!

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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

Not coming back? – Europe’s power demand is predicted to decrease by 3% this year to its lowest since 2002 due to permanent reductions in industrial production, the IEA said. The agency highlighted the impact of high energy prices causing significant shutdowns in heavy industry throughout the continent. While global electricity demand rises with increased electrification, European manufacturers face challenges in deciding whether to expand or relocate due to energy costs. The IEA noted key business decisions, like BASF’s factory closures and Volkswagen’s halted battery plant plans, and also pointed to the highest business bankruptcy levels in the EU since at least 2015. While the EU could offer more state aid or energy price subsidies, these might burden citizens. Boosting renewables is another option, though with initial high costs. The IEA also warned of grid strains due to rising temperatures, with extreme heat expected to exacerbate the situation. Electricity usage is also predicted to fall in the US and Japan, though the global picture will vary depending on changes in the economic outlook. China’s demand is forecast to increase at an average annual rate of 5.2% over the next two years, only slightly below its 2015-19 average. “Global electricity demand is set to increase by slightly less than 2% this year, down from a rate of 2.3% in 2022. But assuming an improving world economic outlook, demand growth is expected to pick up again in 2024, rebounding to 3.3%, according to the IEA’s latest projections.” (Bloomberg)

Metal shortages – The Energy Transitions Commission (ETC) – a global group of energy producers, consumers and financial institutions- warns that the swift growth in energy demand due to the low-carbon transition might result in a shortage of several key metals within the next decade unless investments rise. Metals such as lithium, nickel, graphite, cobalt, neodymium, and copper might face supply gaps, potentially increasing prices and hindering 2050 net zero emissions targets. The past decade saw limited investment in exploration and output, and large mining projects can take up to 20 years to initiate. To match the rising demand, especially in lithium and copper, supply will need to increase significantly. Annually, investments in energy transition metals need to hit $70 bln by 2030, compared to the past average of $45 bln. Collaboration is essential to boost recycling, investment in new mining, and establish environmental standards, the group said. By accelerating advancements in technology, recycling, and efficiency, the dependency on fresh supply could decrease by 20-60%, it added.

Cold comfort – A study in PNAS Nexus reveals that carbon pricing policies may negatively impact low-income elderly individuals, especially in less affluent countries. These policies, aimed at reducing carbon emissions, will likely raise the costs of heating and cooling. The elderly often spend more time at home and have heightened temperature sensitivity, resulting in increased energy use for temperature regulation. Moreover, many elderly people, particularly in poorer countries, live on fixed incomes, making it challenging to accommodate increased living costs. With the global population of those over 60 expected to reach 2.1 bln by 2050, the authors suggest implementing targeted social protections to support the elderly while addressing climate change.

EMEA

Wood you believe it – The British government has met less than half of its annual tree-planting target in England, lawmakers have found, putting net zero ambitions at risk, the Guardian reports. The government earlier this year published what it called “ambitious” nature targets, a requirement by law, which include the goal of planting 30,000 hectares of woodland by March 2025. A report by an audit committee has now found that this target was unlikely to be met. While the public sector is responsible for only a quarter of UK woodland, the report found there was not enough direction from the government for the private sector, which faces “unclear strategies and overly bureaucratic schemes”. Tree planting is crucial for meeting carbon and biodiversity targets, as well as for sustainability in the building industry.

Linking up – Work has begun on a £2.4 bln project to build the first power cable linking Britain and Germany, said NeuConnect Interconnector, which is leading the move to connect two of Europe’s largest energy markets for the first time, Reuters reports. The new energy link will extend over 725 km in length, mostly under the sea, and will be one of the world’s largest interconnector projects.

German tax breaks – The European Commission approved a €3 bln German scheme to support private investments in specific strategic goods for the net zero economy, the European Commission announced. The aid will take the form of direct grants, tax advantages, subsidised interest rates on new loans or guarantees on new loans and will be open to companies producing batteries, solar panels, wind turbines, heat-pumps, electrolysers, equipment for carbon capture usage and storage and equipment needed for the production of critical raw materials.

ASIA PACIFIC

Hydrogen partnership – JERA, Japan’s largest power generation company,  has concluded a strategic collaboration agreement with the Abu Dhabi National Oil Company (ADNOC) to further deepen their cooperation towards a value chain of clean hydrogen and ammonia, it announced Wednesday. The two companies have jointly conducted feasibility assessments in the hydrogen and ammonia fields, JERA said in a statement, without disclosing more plans. UAE has pledged to become one of the leading producers of clean hydrogen, and ADNOC is expected to play an important role in achieving this target.

More hydrogen partnership – Tokyo-listed trading company Sojitz Corporation has invested in Hycamite, a Finnish startup that develops turquoise hydrogen production technology, it said in a statement. Hycamite has raised a total of € 25 mln in funding through a third-party allotment of shares underwritten by Sojitz, the Finnish Climate Fund, and other investors, according to the statement. Through the investment, Sojitz has acquired an exclusive license for Hycamite’s technology in Japan, and will work with the startup to advance commercial-scale projects both at home and abroad to expand the business this decade.

Risk of steel – India’s intentions to expand its coal-powered steel production may lead to a fourfold increase in emissions from 2021 to 2050 unless major measures are adopted to realise the country’s 2070 net zero emissions goal, according to the US-based Global Energy Monitor (GEM). India is currently the leading developer of new coal-based steel capacity globally, with China in second place. Both nations need to accelerate efforts to meet worldwide decarbonisation targets. The report emphasises that China and India’s actions in the steel sector are crucial due to their industries’ size. Presently, the global steel sector is not aligned with net zero goals, accounting for 11% of global CO2 emissions. The IEA suggests that over half of steelmaking must utilise electric arc furnace-based technology (EAF) by 2050. Coal-based steel accounts for 86% of emissions, while the rest comes from EAF steelmaking. Current plans indicate that only 32% of capacity will use EAF by 2050.

Another lawsuit – Human rights and environmental organisation, Jubilee Australia, has filed legal proceedings against two Australian government agencies that subsidised new fossil fuel projects, stating they did so without disclosing the full impact on the environment, Energy Magazine reports. The claim is against Export Finance Australia which is Australia’s export credit agency, and the Northern Australia Infrastructure Facility, a A$7 bln ($4.7 bln) fund for infrastructure in northern Australia. Both provide taxpayer subsidised finance for new fossil fuel and related projects that would otherwise not go ahead. Executive Director of Jubilee Australia, Dr Luke Fletcher, said that most people don’t realise that the Australian Government is using taxpayers’ money to fund new fossil fuel projects and infrastructure, through agencies like EFA and NAIF. Jubilee is represented by Equity Generation Lawyers.

AMERICAS

See ya Sununu – Republican Gov. Chris Sununu of New Hampshire, historically an opponent of tightening the rules of the region’s RGGI carbon market, announced Wednesday that he won’t seek re-election in 2024. First elected in 2016, Sununu is currently serving his fourth term as governor. He said he believes it’s time for another Republican to lead the state. Sununu’s decision offers Democrats a chance to secure a vital gubernatorial position in the 2024 elections. After Sununu’s announcement, former Republican state Senator Chuck Morse declared his intention to run for governor. Former Republican Senator Kelly Ayotte hinted at a forthcoming announcement about her possible candidacy, emphasising the need for a “tough and tested conservative” leader. Manchester Mayor Joyce Craig and Executive Council member Cinde Warmington have also announced their bids for the Democratic nomination for governor.

Money for methane – The US Department of Agriculture awarded a $25 mln grant to PennState University researchers to study reduction of methane emissions in dairy farms using “climate smart” practices, StateImpact Pennsylvania reported Wednesday. The group’s research will involve 70 farms across Pennsylvania of various sizes and owned by underrepresented groups such as Amish families, women, and beginning farmers, selected with help from non-profit Center for Dairy Excellence, the report noted. The team aims to provide measurable reductions in methane emissions from cows, used to generate carbon credits. One approach would attempt changing the animals’ feed to decrease the gas produced after digestion. Another method would use manure storage systems that prevent methane from escaping into the atmosphere, the report detailed. VCM standard and registry Gold Standard launched a new methane reductions methodology for beef producers on Wednesday. Each farm in the PennState study will identify practices that would best suit their operations, with farms studied in three groups for two years at a time. Money from the grant would be used to pay for new equipment and training.

CCS in action – US power generation firm Calpine inaugurated on Friday a $25 mln carbon capture pilot project at Los Medanos Energy Center in Pittsburg, a natural gas power plant, aiming to capture 95% of all carbon emissions, or 10 tCO2/day, at the plant to be stored underground, Carbon Herald reported Wednesday. Technology firm ION Clean Energy developed the CCS system, which the partners involved expect to help create the blueprint for similar CCS projects at natural gas power plants across the country, the report stated.

Captured and stored in Manitoba – Manitoba Environment and Climate Minister Kevin Klein and Economic Development, Investment and Trade Minister Jeff Wharton have met with industry and business leaders to discuss the future of CCS in the Canadian Province, they announced Wednesday. The ministers emphasised the technology’s potential to both protect the environment and support jobs in heavy industries, while also expressing concern over federal carbon tax increases affecting Manitoba’s economic security. In response, they’re developing a Manitoba-specific regulatory framework for CCS. This would allow businesses to access the Canadian government’s carbon capture tax credit and save on the federal carbon tax. The goal is to help Manitoba reach its 5.6-Mt emissions reduction target in five years. The ministers committed to ongoing collaboration with stakeholders under the Made-in-Manitoba Climate and Green Plan while attracting investment to boost the economy.

VOLUNTARY

Offsetting as a service – A logistics tech firm Pledge has launched an offsetting service “Impact Links” that will allow forwarders to add their own branding and offer carbon credit offsets to customers, Air Cargo News reported Wednesday. The service includes the company’s carbon calculator and can be embedded on websites, emailed to customers, or shared with a QR code, the report noted. The carbon credits purchased through Impact Links are part of Pledge’s portfolio of offsets including nature-based and technological carbon removal, as well as avoidance projects, the report noted. The firm would handle all aspects of the transaction including processing payment and issuing a certificate as proof of purchased offsets.

AVIATION/SHIPPING 

Ground control – Germany’s transport ministry (BDMV) is launching a new initiative to supply airplanes in Germany with clean electricity during stops at airports. The power supply required for airplane maintenance, refuelling, and cargo handling is typically supplied by diesel generators or auxiliary turbines on the plane, so by switching over to direct connections to the electricity grid, batteries or hydrogen, the BDMV aims to reduce airport emissions and aviation’s carbon footprint. “With the new ground power directive, we become one of the first countries to support airports in this transformation away from fossil fuels to climate neutral power supply for grounded aeroplanes,” Germany’s Transport Minister Volker Wissing said. Investment grants are on offer for environmentally friendly ground power systems, as well as for charging and refuelling infrastructure. Applications are open from July 28 to Aug. 31, 2023.

INVESTMENT

Solid investment – Researchers at Imperial College London have received nearly £1 mln in funding to create a carbon-negative cement additive. This grant is part of the CCUS Innovation 2.0 competition, under the Department for Energy Security and Net Zero’s £1 bln Net Zero Innovation Portfolio (NZIP). The initiative seeks to address the environmental impact of concrete, the binding element of which, Portland cement, contributes to 8% of global CO2 emissions. The team is working on a sustainable building material that captures carbon by converting magnesium silicate minerals, especially olivine, into a supplementary cementitious material while capturing CO2. This new material can be integrated into existing building regulations, offering the desired strength and durability for concrete. Additionally, the resultant magnesia from the process can be utilised to store CO2 permanently in the form of magnesium carbonate, which can be incorporated into construction materials. The funding will further the development and testing of these innovative products.

Carbon couture – India’s largest natural gas company GAIL and LanzaTech Global have formed a partnership to develop technology solutions supporting GAIL’s Net Zero 2040 ambitions. They plan to establish a pilot CCU project to transform CO2 into useful materials, replacing its release into the atmosphere. By integrating LanzaTech’s carbon capture tech with GAIL’s H2 and CO2 gas streams, they aim to produce everyday items like fuels, packaging, and clothing from biorecycled content instead of fossil fuels. LanzaTech’s biorecycling technology uses bacteria to transform carbon pollution into ‘CarbonSmart’ chemicals for various consumer products. This collaboration seeks to promote CO2 utilisation and further GAIL’s sustainable energy transition goals.

Changes needed – An effective mechanism for adaptation finance should include the introduction of new taxonomies and the visualisation of expected cash flows, according to Tokyo-based Research Institute for Environmental Finance (RIEF), which this week published a draft guidance paper that aims to help boost private financing into adaptation projects. Current adaptation initiatives are still largely dependent on public funds as it remains difficult to estimate cash flows during the project planning or even construction period. According to RIEF’s proposal, taxonomies of projects and methods should be established to help clarify the utilisation of proceeds and estimate cash flows from such projects. The issuers of adaptation finance instruments should also create ‘proxy cash flows’ that are linked to estimated cash flows and convert their value into present value for investors. “It is crucial to create a mechanism that can generate new cash flows in adaptation activities, just as in mitigation activities,” RIEF said in the paper.

AND FINALLY…

Disasters, all year round – The US federal government’s disaster relief fund is about to run out of money, FEMA Administrator Deanne Criswell warned late last week. Depleted by an onslaught of climate change-fuelled disasters and extreme weather — and not even accounting for the recent catastrophic flooding in the US northeast — the Disaster Relief Fund “will go into a deficit some time mid-to-late August,” Criswell told the House Homeland Security Subcommittee on Emergency Management and Technology. This will force the agency to pull funds from long-term recovery commitments. The fund is set to be replenished Oct. 1, assuming Congress has approved a spending plan by then. “We can no longer speak of a ‘disaster season’ — we now face intensified natural disasters throughout the year, often in places that are not used to experiencing them,” Criswell said. (Carbon Brief)

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