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TOP STORY

PREVIEW: ‘Legacy’ credit fixes for voluntary carbon market abound ahead of integrity council framework release

Multiple approaches exist to address the treatment of surplus ‘legacy’ offsets lingering in the ledgers of the voluntary carbon market that is crucial for restoring participants’ confidence, regenerating climate finance flows, and achieving global environmental targets, experts told Carbon Pulse before an industry body puts out its assessment framework on the issue.

ASIA PACIFIC

New Zealand slashes NZUs available at auction, raises cost containment reserve price

The New Zealand government has reworked the price controls and settings of its ETS, which will come into effect in December, bringing it largely in line with the recommendations made last year by the Climate Change Commission.

Korean GHG emissions fall to lowest in a decade despite 2022 GDP growth

South Korea’s greenhouse gas emissions decreased by 3.5% in 2022 despite improved economic sentiment, reaching their lowest level since 2010 supported by a greener energy mix and declining output from carbon-intensive sectors, the government announced Tuesday.

Major Chinese papermaker secures nature-based offset deal ahead of CCER relaunch

The carbon management subsidiary of a major Chinese forestry and paper company has secured a 20-year contract with a state-owned firm to generate domestically-issued offsets that it expects can bring net profits of more than 30 million yuan ($4.2 mln), a move made amid growing optimism about the relaunch of the national programme.

EMEA

EU nations take further step toward completing Fit for 55 climate package

EU member states formally adopted several key bits of climate legislation on Tuesday, to bring the 27-nation bloc closer to completing its mammoth climate policy package designed to ensure the it reaches its goal to reduce emissions by at least 55% by 2030 compared to 1990 levels.

Euro Markets: EUAs advance amid steady buying interest even as downside bets increase

European carbon prices advanced on Tuesday, recording gains in the morning to set a new one-month high before stabilising through to the close, as continued accumulation ahead of the August supply cut underpins the market though options trading suggested traders are boosting bearish bets for the end of the year.

Kenya lawmakers propose new fees and taxes for carbon projects -media

Kenyan lawmakers have reportedly advanced a bill outlining how carbon credit revenues earned in the country are to be divided, forming part of their work to advance how the African nation will deploy carbon pricing to help meet its climate ambitions.

Rwanda to ensure 40% of trees planted in carbon projects are indigenous species -media

Rwanda is to issue a directive that will force afforestation carbon projects to plant at least 40% of their trees using native species, local media in the country reported.

VOLUNTARY

UAE asset manager flags plans for $250 mln carbon removals-focused investment fund

A UAE-based asset management firm plans to launch a $250 million fund to invest in carbon credit and other climate-related projects, the company announced on Tuesday as the first of its kind in the Middle East.

CO2 engineered removal credits offered on two exchanges as market gears up for expansion

Standard body Puro.earth has listed its carbon units on two exchanges amid increasing demand for engineered removal credits, with an electronic payments firm the latest US-based technology company to have made a hefty purchase on Tuesday.

ACX’s Black Portal completes first three-day OTC trade

AirCarbon Exchange (ACX) has completed the first trade entered and settled through its ACX Black Portal, which it says will help speed up the process of OTC trades, the company announced Tuesday.

CO2 removal company releases first ever methodology for microbial carbon mineralisation

A California-headquartered climate tech firm on Tuesday announced it has released a first-of-its-kind methodology where microorganisms remove CO2 from the atmosphere and mineralise it in soil.

AMERICAS

More speculators flock to Alberta compliance offset market

Two more speculative players have accumulated positions in the Alberta offset market under the Technology Innovation and Emissions Reduction (TIER) regime, building on the credit holdings that existing financial entities have accumulated in the programme.

Majority of $20 bln in Amazon oil and gas financing sourced from just eight banks -report

Only eight banks are responsible for over half of the $20 bln in direct financing of recent oil and gas activities in the Amazon rainforest, according to a report published Tuesday, as South American nations ready an agreement to stamp out illegal deforestation in the biome by 2030.

BIODIVERSITY (FREE TO READ)

Indian parliament passes controversial biodiversity bill

India’s lower house of parliament on Tuesday passed an amendment to its 2002 biodiversity act amid concerns the bill weakens regulatory oversight and will make it harder for the mega biodiverse country to meet its targets under the Kunming-Montreal Global Biodiversity Framework (GBF).

US EPA releases draft herbicide strategy as part of move to close lag on threatened species work

The US Environmental Protection Agency (EPA) has released for public comment a draft strategy for herbicide use, outlining actions to protect over 900 listed threatened species and designated critical habitats.

Corporate biodiversity guidance to become more sector-specific, granular, say experts

Corporate biodiversity guidance and regulation is expected to eventually move towards a more sector-specific and granular model, a webinar heard Tuesday, given the highly localised nature of impact and mitigation action.

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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

Coal injustice – South Africa’s electricity minister Kgosientsho Ramokgopa has attacked the country’s $8.5 bln JETP climate finance pact with rich nations. He said the closure of Eskom’s Komati, the first coal power plant to be shuttered, was “an injustice that is unfolding”. South Africa is yet to produce an implementation plan that would allow money to flow from France, Germany, the US, UK and the EU. (Bloomberg)

Speaking of JETP – The partnership is considering carbon trading as a potential funding source for the early retirement of coal-fired power plants, as certain member countries have not committed to providing funding. According to Indonesian media, Deputy Chair of the JETP Secretariat Paul Butarbutar expressed the need for more funding options for Indonesia’s energy transition, as there is a limited willingness among parties to support new renewable energy projects. Tenggara Strategic, a think-tank connected to The Jakarta Post, has proposed that under JETP, emissions reductions from the early retirement of coal plants be sold as carbon offsets and the proceeds be channelled to the facility operators. PT Perusahaan Listrik Negara (PLN), an Indonesian government-owned utility, estimates that the early retirement of 5 GW of capacity will cost $4.2 bln.

EMEA

Euros for ambition – The EU needs to match its climate ambition with adequate financial resources or otherwise risk missing its objectives, said Jean Pisani-Ferry, a senior advisor to the French government, in an interview with EurActiv France. The cost of fulfilling the goals of the Paris Agreement in France would amount to €66 bln per year between now and 2030, or about 2% of the country’s annual GDP, according to a study carried out by Pisani-Ferry. To close the gap, there should be a 50-50 split between private and public investment in France, recommends the study. At the EU level, the ratio of public investment should reduce to 30% due to spending constraints, it suggests.

Unfixed income – The European Central Bank did not meet its commitments to decarbonise its corporate bond portfolio in line with the Paris Agreement and abandoned reinvestments by the end of June 2023, failing to implement its own climate plan, a new report claims. About 23% of the outstanding amount of green bonds bought by the ECB as part of its reinvestments have been issued by fossil fuel companies (10 bonds in total), while 10 additional bonds have been bought from other carbon-intensive companies (30% of the outstanding amount of green bonds). The research conducted by SOAS University of London, the University of Greenwich, the University of the West of England and Greenpeace Central and Eastern Europe (CEE) also shows that the ECB can and should return to a more ambitious approach that actively reshuffles its corporate bond holdings towards greener issuers, and outlines a Green Unwinding strategy to decarbonise the ECB portfolio much faster.

Explosion of power – The EU’s environment chief is calling for a clean-up of unexploded mines in the Baltic Sea to prevent accidental harm, keep the munitions out of the hands of criminals and reduce wind farm installation delays. Virginijus Sinkevicius, the EU environment commissioner and a Lithuanian politician, told the Financial Times that about 300,000 tonnes of unexploded munitions, mostly from the first and second world wars, were littering the Baltic seabed.

For goodness’ sake – Christian Aid, a British nonprofit, announced that it will no longer bank with Barclays due to the bank’s funding of oil and gas projects, Bloomberg reports. The 78-year-old charity has kept its money with Barclays since 2015. Between 2016 and 2022, Barclays financed some $190 bln in fossil fuel projects, according to an analysis by the Rainforest Action Network. Those included projects for fracking and drilling in the Arctic.

Carbon certainty – Finland’s Minister of Climate and the Environment Kai Mykkanen has faced critique from experts and opposition lawmakers for estimating that the government should prioritise carbon capture technologies as it seeks to rein in emissions. His view is that the long-term potential of carbon capture technology exceeds that of strengthening the land-use sector, namely soil and forests, as a carbon sink. Technological development is more certain than uncertainties around logging volumes and tree growth prevalent in the land-use sector, according to Mykkanen.

Scoping solution – Britain’s decision to authorise new licences for oil and gas exploration in the North Sea came under scrutiny at London’s High Court on Tuesday. Campaigners Greenpeace argued the government failed to assess downstream emissions but lawyers representing the government said ministers were not required to, though they nonetheless considered them. (Reuters)

Back to drop – UK GHG emissions dropped in Q1 for the first time in two years, as the post-pandemic recovery in demand eased and renewable energy contributed more to the energy mix, Bloomberg reported. Emissions on a residence basis — which includes all British residents plus UK-registered businesses whether they are located in the country or overseas — were estimated to be 151 million tonnes of CO2e in Q1, a 1.4% drop from a year earlier, according to data from the Office for National Statistics.

ASIA PACIFIC

White hydrogen — Australian energy company 2H Resources has signed an agreement with the country’s peak scientific body, the CSIRO, for a study to develop autonomous monitoring sensors to detect surface occurrence of natural hydrogen in exploration acreage, the company announced Tuesday. As part of the study, 2H Resources will evaluate prototype autonomous soil gas sensors developed by CSIRO, which will measure the flow of hydrogen and other gases in the soil. The sensors are part of experimental exploration work, which aims to ramp up the ability for the company to pinpoint locations for hydrogen exploration wells. The sensors will be deployed at 2H Resources South Australian Petroleum Exploration Licence areas, once they are granted. Six monitoring units will be installed over a period of three months, and may be scaled up depending on the results. Naturally occurring hydrogen, or “white hydrogen” is considered extremely rare, with it usually having to be produced using electrolysis or steam methane reforming.

Hand in hand – South Korea and Australia have agreed to enhance their cooperation on mineral and clean energy supply chains, Yonhap News Agency reports, citing a release by the Ministry of Trade, Industry and Energy. The two countries will use multilateral consultation platforms such as the Indo-Pacific Economic Framework, and work more closely on the supply chains regarding industry minerals, LNG, hydrogen, eco-friendly steel production, and carbon capture technologies, said the report.

New partnership – Singapore’s Keppel Corporation has teamed up with HSBC to pursue energy transition opportunities aimed at reducing emissions in China’s Greater Bay Area and across Asia, it announced on Tuesday. The cooperation, aiming to support the acceleration of the region’s energy transition efforts, will draw on Keppel’s expertise in developing energy and environmental infrastructure, as well as HSBC’s ability to provide green financing solutions for clients, the announcement said.

AMERICAS

Money on trees – The Canadian federal government and Edmonton’s municipal government announced C$95.6 mln ($72.6 mln) to fund the planting of 1.5 mln trees in the northwestern city as part of the national 2 Billion Trees (2BT) programme, a government press release said Monday. A report from Canada’s Commissioner of the Environment and Sustainable Development at the Office of the Auditor General this spring found that the federal government’s C$3.2 bln ($2.4 bln) 2BT scheme was “unlikely to reach its 2 billion tree-planting objective or achieve expected emission reductions unless significant changes are made”. Edmonton, Alberta’s capital and second-largest city, aims to increase its urban forest canopy by planting approximately 300 ha of naturalized areas, boulevards, and parks, planing to achieve a 20% canopy cover by 2071.

If pig fat could fly – Renewable diesel (RD) and sustainable aviation fuel (SAF) from 100% renewable sources, like vegetable oils, refined oils, animal fats, and greases from a new hydroprocessing catalyst by Chevron and chemical company W. R. Grace, a press release said Tuesday. The new catalyst solution named “Endeavor” is based on contaminant removal, and maximizing yields and profits from a wider variety of biofeeds. The catalyst is key to contaminant capture, deoxygenation, and isomerization in making the renewable fuel, the press release said.

Forest fire fuel – Axens North America and Sumitomo Corporation of Americas signed an agreement Tuesday to develop a study for a commercial plant producing cellulosic bioethanol, according to a press release. The plant would produce woody biomass through Allotrope Cellulosic Development Company, a company headquartered in California. The feedstocks will be Californian forest thinning materials, which come from waste left after forest fires, and agricultural residues.

VOLUNTARY

Social tokens – Carbon standards body SocialCarbon has updated requirements for participants to tokenise its carbon credits (SCUs). It stated that only issued, non-retired SCUs held on a company’s registry account can be tokenised, with a third party required to conduct KYC checks on both the buyer and seller.

Carbon-neutral cars – American vehicle manufacturer Rivian on Tuesday announced it will begin selling a carbon neutral add-on with its luxury electric pickups and SUVs. Rivian made a commitment to buy 100 MW from an enormous planned solar plant in Kentucky, and plans to use renewable energy credits (RECs) generated by that plant to support a “carbon neutral” option it’ll sell to customers. The solar plant is expected to begin generating electricity in 2027. It’s being developed by BrightNight, an independent power producer based in Florida. (Axios)

INVESTMENT

ETF exposure – HANetf has launched an exchange-traded fund (ETF) providing exposure to companies that could benefit from the European Green Deal, reports CityWire. European Green Deal Ucits ETF (EUGD) tracks Société Générale’s SGI European Green Deal ESG Screened NTR index, offering investors access to companies likely to benefit from the EU’s energy transition policy package. The ETF will target stocks within clean energy, sustainable mobility, building and renovation and the circular economy.

SCIENCE & TECH

Waste water – Claims of developing the world’s first renewable gas production facility based on pyrogasification for sea transport are being made by Air France, a shipping company called CMA CGM, and energy provider Engie, Reuters reported Tuesday. Pyrogasification is the process of heating waste in a low-oxygen environment and producing biogas. The facility will be in Le Havre, France, according to the companies.

AND FINALLY…

Silent victims of climate change  – Ancient Buddhist murals along the Silk Road, lasting for centuries in desert conditions, are already under direct threat from unprecedented rainfall in China’s Gansu Province, according to a release by Greenpeace. Researchers have found that cultural heritage sites in Dunhuang and Zhangye already show “deterioration due to periods of high humidity and rapid fluctuations in humidity during extreme rainfall, as well as the impact of flooding and leaks”. Total rainfall in Gansu has increased overall since the beginning of this century while the number of days with rainfall has decreased, which has led to a significant increase in bouts of extreme rainfall, Greenpeace said.

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