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TOP STORY
Major carbon credit player restructures and lays off staff
One of the largest players in the voluntary carbon market (VCM) has undergone a major restructuring to reduce staff amid the challenging economic environment of high interest rates and stalling demand.
AMERICAS
PREVIEW: Expectations for Washington’s Q3 carbon allowance auction coalesce near Tier 2 reserve price
Market participants mostly expect Washington’s third cap-and-trade auction in 2023 to settle near steep front-month allowance prices on the secondary market, with the Wednesday sale almost guaranteed to once again trigger a reserve permit offering.
Amazonian governors demand Brazil carbon trading programme include subnational governance
Nine state governors whose jurisdictions cover the Amazon rainforest have penned a letter calling for the proposed Brazilian System of Emissions Trading (SBCE) to include existing subnational REDD+ programmes, and allow subnational representatives to help comprise the future cap-and-trade system’s governing body.
RGGI states announce next programme review meeting for electricity sector analysis
The 11 RGGI member states on Tuesday announced they will host a public meeting in late September to discuss and seek feedback on the third programme review thus far, alongside results of their electricity sector analysis for reforming the power sector carbon market.
Final Nova Scotia cap-and-trade sale sees largest undersubscription rate
The final Nova Scotia cap-and-trade sale saw its smallest number of bidders and steepest undersubscription rate ever as it cleared at the scheme’s floor price, according to results published by the provincial government on Tuesday.
EMEA
EU’s Von der Leyen proposes Dutch foreign minister for climate role
European Commission President Ursula Von der Leyen on Tuesday proposed Dutch deputy prime minister and foreign minister Wopke Hoekstra as the next EU climate commissioner, following an interview with the candidate put forth by the outgoing Dutch coalition government.
Euro Markets: EUAs give up morning gains amid sustained selling as natural gas weakens despite strike news
European carbon prices reversed early gains with a sharp decline on Tuesday afternoon in thin trading, as natural gas prices came under steady pressure even as workers at Chevron’s Australian LNG operations prepared to strike.
UK invests £16 million in peatland restoration
The UK government has committed £16 million to restoring peatland across 12 projects covering over 6,000 hectares collectively in England to help boost the nation’s carbon sink.
PGE to exit coal by 2030 and targets climate neutrality by 2040
Poland’s largest utility PGE plans to spin off all its coal capacity by the end of the decade, heavily invest in wind and nuclear, and reach climate neutrality by the 2040, the firm said in a strategy update on Tuesday.
European firms team up to scale transaction of removals credits
Two Europe-headquartered companies active in the removals space have announced Tuesday a partnership that will enable projects certified by one of the firms access to a large marketplace operated by the other, facilitating the trade of carbon removal credits between buyers and sellers.
European-based carbon credit firm faces stock market delisting
A publicly-traded European carbon credit firm faces delisting from Amsterdam’s Euronext stock market.
ASIA PACIFIC
Major Japanese companies invest in Southeast Asia-focused forestry fund
A Southeast Asia-focused forestry fund by the world’s second-largest forestry asset manager has received investments from its two main shareholders, the investors announced Tuesday.
Asia-focused offset standard launches in Singapore, targets technology-based solutions
A new carbon offsets standard and registry focused on Asia launched in Singapore on Tuesday, eyeing the potential of urban- and technology-based solutions in the region, local media reported.
Vietnam, Singapore sign LoI on correspondingly adjusted Paris carbon credits
Vietnam and Singapore have signed a Letter of Intent (LoI) to operationalise their Article 6 partnership, which would pave the way for activating the trade of correspondingly adjusted carbon credits between the two Southeast Asian nations.
NZ slashes climate spending, as IMF report urges govt price agricultural emissions
The New Zealand government has slashed spending on climate initiatives by some NZ$236 million ($139 mln), as an International Monetary Fund report has thrown its support behind pricing agricultural emissions.
NZ needs to come clean on its ITMO strategy, analyst says
New Zealand needs to make a decision on how it intends to make up the 100-million tonne emissions shortfall to meet its 2030 climate, an analyst told a conference Tuesday, describing it as the elephant not in the room.
VOLUNTARY
Verra incorporates carbon credit labelling, global initiative alignment in latest VCS programme update
Standards body Verra on Tuesday announced updates to its VCS programme such as labels for carbon credits featuring removals and alignment with Article 6 of the Paris Agreement, as well as to further align it with several international programmes and quality initiatives.
INTERNATIONAL
Offshore wind explosion in Asia Pacific to boost climate targets, finds report
New offshore wind capacity expected to built in the Asia-Pacific (APAC) region between now and 2032 could abate around 650 million tCO2 a year, forecasts the Global Wind Energy Council (GWEC).
BIODIVERSITY (FREE TO READ)
US government prioritises tribal and state-owned land restoration with new investment
The US Department of Agriculture’s Forest Services has announced $16.2 million to restore forest lands in tribal, state, and private sites in an effort to boost nature-based resilience to climate change, as part of its Landscape Restoration Programme.
Indian state boycotts central government’s palm oil plantation drive in a bid to protect biodiversity
A state government in India this year refrained from participating in the federal government’s annual palm oil plantation drive, saying it would hurt the state’s biodiversity while causing rising carbon emissions.
Forest firm targets systemic change with biodiversity pilot
Metsa Group has targeted triggering “systemic” international change in land management with the launch of a pilot to boost biodiversity across 650 hectares, Carbon Pulse has learned.
COMMENT
Don’t look up, the worrying climate change denialism
There are a few media outlets that have taken the route of sensationalising and systematically criticising emission reduction projects financed through carbon credits, but we cannot continue to belittle all the efforts that are being made to achieve net zero, writes Alexis Leroy of Allcot.
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CONFERENCES
Argus North American Biofuels, LCFS & Carbon Markets Summit – Sep. 11-13, Monterey, CA: Join 600+ key government representatives and industry stakeholders from across the entire biofuels value chain and carbon markets sector for three days of networking and knowledge exchange. Hear from leading policy makers from California, Oregon, Washington, Canada’s ECCC, Alberta, and British Columbia and industry experts from LanzaJet, BMW of North America, Morgan Stanley, Chevron, Southwest, Mercuria, Radicle, Phillips 66 and more. Take advantage of this opportunity to gather the latest policy and market insights and reconnect with industry peers. Learn more here.
North America Climate Summit – Sep. 19-21, New York City: The International Emissions Trading Association (IETA) looks forward to welcoming delegates to our flagship North America Climate Summit (NACS) 2023, an official accredited event of New York Climate Week 2023 and the UN General Assembly 2023. The Summit is the ideal forum to take stock of the world’s evolving net zero landscape and clean growth opportunities, and a zoom into North America. Hear from policymakers, business leaders and innovators who are leading the pack in building, scaling and collaborating on carbon pricing and markets for net zero. Register 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
EMEA
Checking claims – The UK’s Advertising Standards Authority will “carefully consider” research published in Science last week claiming that 94% of VCS REDD+ projects provided no additionally, according to Bloomberg. According to the watchdog, some companies are making carbon-neutral claims that are likely to breach existing rules. The agency previously announced that it would be tightening scrutiny on companies that run misleading ads that exaggerate corporate climate claims, and this new research will continue to inform the regulation. Shell UK, BP, and ExxonMobil were previously cited by the agency for running ‘greenwashing’ advertisements, which they say overstated how much the companies were investing in cleaner energy.
Bullseye – Germany reached its target of raising €6 bln from its state budget for international climate finance three years ahead of time, said the development ministry. Germany’s climate finance in 2022 totalled around €6.4 bln, up from €5.3 bln in 2021, and thus surpassed the €6 bln target set for 2025, Clean Energy Wire reports.
Save the porpoises – Concerns about the welfare of porpoises and marine birds are holding up UK government plans to spearhead the development of new North Sea oil and gas fields. The Offshore Petroleum Regulator for Environment and Decommissioning is assessing how the species may be affected by disturbance from drilling rigs in four ‘priority clusters’ of fields in the southern North Sea where gas had been found in the past but not developed. Disturbance may include potential discharge and noise, reports The Times.
A first for green methanol – Nitrogen, methanol and hydrogen producer OCI Global has successfully bunkered the world’s first ever green methanol-powered container vessel, which is owned by Maersk, in the port of Rotterdam. This marks the final stop on the ship’s pioneering maiden voyage before it reaches home in Copenhagen, having sailed along one of the world’s busiest shipping routes, from Korea, via Singapore and the Suez Canal before reaching Europe. This is the first ever green methanol bunkering operation in Europe.
Help, please – A group of 36 leading investment managers, banks, and pension funds that together hold £1.5 tln of assets under management have written to UK Prime Minister Rishi Sunak, warning that mixed messages from the government on its support for the net zero transition are jeopardising billions of pounds of much needed investment, Business Green reports. Members of the UK Sustainable Investment and Finance Association, including major financial firms such as Jupiter Asset Management, Scottish Widows, Royal London, Aegon, and Triodos, warned that recent moves to dilute or delay decarbonisation policies would impact the ability of financiers to provide the estimated £50 bln to £60 bln of annual investment required to deliver on the UK’s legally-binding climate goals.
CO2 removal – UK-based power company Drax is joining the Carbon Dioxide Removals (CDR) group of the First Movers Coalition (FMC) to help accelerate the development of the nascent CDR market and forge its place in the potentially trillion-dollar sector. The FMC was launched at COP26 by U.S. Special Presidential Envoy for Climate, John Kerry, and is made up of coalition of companies from hard-to-abate industries who use their collective purchasing power to create early markets for clean tech. The CDR group will look at purchasing durable and scalable carbon removals, such as Bioenergy with Carbon Capture and Storage (BECCS), for which Drax is already active.
Regulation required – Egypt’s Financial Regulatory Authority has announced regulations for verification and certification bodies that aim to tap into the country’s voluntary carbon market, according to Egypt Today. The institution will require national project developers and certification organisations to have relevant ISO accreditation, which will need to be renewed annually. International actors will need to be a designated operational entity under the UNFCCC, or accredited by an international voluntary standard such as the Gold Standard or the Voluntary Carbon Standard program. Egypt announced plans to boost the country’s voluntary carbon market activities at COP27 last year.
AMERICAS
Dwindling support – Leading mutual fund manager Vanguard supported only 2% of shareholder resolutions on environmental and social issues at US companies this year, a significant decline from 12% last year, Reuters reported. This decline mirrors a trend seen across the industry, with BlackRock, another major asset manager, saying it backed the mostly-advisory measures only 7% of the time, which decreased from 22% last year. Vanguard’s decrease in support was attributed to a higher number of proposals, 359 compared to 290 the prior year, as well as improved company disclosure that made many resolutions unnecessary.
Disappointing – Canadian minister of environment and climate change Steven Guilbeault responded to Suncor CEO Rich Kruger’s remarks on focusing on the business of low-cost production and profits, rather than the energy transition, as “disappointing”. Guilbeault noted that disengagement from climate change and sustainability in pursuit of short-term profit is wrong – and Kruger’s remarks have motivated him now moreso than ever to conduct regulation. The ministry anticipates to publish draft regulations this fall that cap oil and gas emissions followed by a decline over time. (Canadian Press)
Hoosier hullabaloo – Wabash Valley Resources, a company seeking to produce fertiliser, hydrogen, and sequester CO2 in West Indiana, faced strong pushback at a community meeting in response to its proposed underground CO2 injection wells. The company plans to sequester CO2 in rural Indiana, about 19 km from its production facility in Terre Haute. When local residents asked why the CO2 couldn’t be sequestered at the site of the plant, Rory Chambers, Wabash Valley Vice President of Operations, stated it would be a “PR disaster”. Residents were outraged, with vocal concerns from the local farming community – particularly in response to limited community engagement from both the US EPA and Wabash Valley on the matter. (Energy News Network)
ASIA PACIFIC
Deeper cooperation – Brazilian state-run oil company Petrobras has signed memorandums of understanding (MOUs) with the China Development Bank and the Bank of China to jointly evaluate green investment opportunities, finance Petrobras’ supply chain, and facilitate commercial and financial exchanges, it announced this week. Petrobras also reportedly signed a strategic cooperation agreement with Chinese state-owned oil and gas giant CNOOC to deepen cooperation in several businesses including refining and chemical engineering, green and low-carbon energy, and crude oil trade, according to Reuters.
No slowdown – China’s Sinopec, the world’s largest refiner by capacity, plans to maintain steady refinery output during H2 2023 as domestic demand recovers, Reuters reported, citing the company’s stock filings. The refining giant plans 127 mln metric tonnes of crude between July and December, slightly up from 126.54 mln tonnes during H1 2023. That will bring its annual throughput to 253.5 mln tonnes for 2023, an increase of 4.7% from the previous year, according to Reuters.
More coal – China now has 243 GW of coal-fired capacity currently permitted and under construction amid mounting energy security concerns, despite the country’s climate commitments, according to a report released Tuesday by the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM). China began building coal-fired plants with a total capacity of 37 GW and approved 52 GW of new projects during H1 2023, but the provinces building most new coal aren’t using the capacity to “support” a large buildout of clean energy, the report noted. “Unless permitting is stopped immediately, China won’t be able to reduce coal-fired power capacity during the 15th five-year plan (2026-30) without subsequent cancellations of already permitted projects or massive early retirement of existing plants,” the analysts wrote.
VOLUNTARY
Staying on-track – The cross-stakeholder VCMI has opened a request for proposals (RfP) to help improve the definition of what ”on-track” means in the context of companies making progress towards meeting their emissions reduction targets and the indicators required. The submission deadline is Sept. 12. Further details can be accessed here. Read Carbon Pulse’s reporting on how VCMI’s carbon credit buyer claim guidelines, which includes demonstrating progress towards science-based near-term emission targets.
SCIENCE & TECH
Better than trees – Researchers have discovered that grasslands contribute over half of the soil organic carbon down to a depth of 1 metre, and this was still the case for soils directly below trees. According to the study in Nature Geoscience, soil organic carbon also varied positively and negatively with increasing tree cover, having a maximum 6% increase, therefore highlighting that afforestation may not be as effective at carbon sequestration as initially hoped, especially when compared to grasses. Utah State University’s Dr. Yong Zhou and colleagues studied a project in Kruger National Park, South Africa, and found that grasses contribute significantly to soil organic carbon, even more than trees. Their research revealed that grasses contributed 76% of the soil organic carbon in Kruger and 57% across all tropical regions. In contrast, trees stored carbon primarily above ground. Furthermore, clay-rich soils are better at storing carbon than sandy soils, and grasses are more adept at drawing nutrients from these clay-rich soils than trees. Another key observation is that afforestation can lead to a risk of releasing carbon back into the atmosphere due to forest fires. The study suggests focusing on grasses for carbon sequestration in savannas, reevaluating the benefits of afforestation. The authors said future research should also consider various factors affecting carbon sequestration, such as different grass types, soil properties, and the influence of herbivores. (Phys.org)
Double stress – Separately, a study led by Rutgers University and published in the Proceedings of the National Academy of Sciences indicates that parts of the Amazonian lowland rainforest, essential for CO2 absorption and climate regulation, may transform into dry savannas. This change, referred to as “savannization,” results from “double-stress” – alternating flooding in wet seasons and drought in dry seasons – which limits the growth of forests and promotes grass species. The Amazon stores approximately 123 bln tonnes of carbon, both above and below ground. A decline in the region’s ability to store carbon, due to a reduction in trees, could exacerbate global warming. The study’s findings contrast with most previous research, which limited the forest-to-savanna conversion to the Amazon’s drier southern parts. The researchers used hydrology and computer models to simulate and project changes in the Amazon, finding that certain regions might shift from being permanently flooded to experiencing double stress. This change could affect critical areas, including some of the most biologically rich floodplain forests and significant peatlands in Peru, thereby releasing more CO2 into the atmosphere. (Phys.org)
AND FINALLY…
Can I offer you a nice carbon-neutral egg in this tryin’ time? – Netherlands-based company Kipster and MPS Egg Farms last week celebrated the unveiling of its progressive egg operation in the US at its newest farm, a local outlet reported. The operation is the first of its kind in the country, giving shoppers the option to pick up a carton of eggs that’s both environmentally friendly and ethically sourced. The carbon neutrality of the farm falls on a number of factors. White eggs are better for the environment since they have a more sustainable production, and the farm uses less, healthier and more sustainable feed for its chickens. The company uses feed that’s part plant-based and part ground-up food for humans, like old pasta, cookies and breads. It also reduces GHG emissions by using solar panels and offsetting what’s left with other projects.
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