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TOP STORY
FEATURE: Venture capital starts to bet big on biodiversity
A global challenge presents a global opportunity, according to venture capitalists (VC) from Silicon Valley to Singapore who see biodiversity companies as a new attractive area for investments, including one announced on Wednesday that will solely invest in biodiversity-related companies.
INTERNATIONAL
Suriname to offer first REDD credits for sale under Paris’ Article 6
The first REDD avoided deforestation sovereign credits available for international trade under the Article 6 mechanism of the Paris Agreement are to be offered by Suriname, a precedent that is expected to be widely followed by other rainforest nations around the world.
EU prepared to fight for fossil fuels phase-out language at COP28 UN talks
The EU is “going to come back” to the topic of phasing out fossils during the year-end COP28 UN climate negotiations, an EU source said on Wednesday, suggesting that the bloc will try to fight for a global agreement despite continued resistance among key countries.
Stronger international cooperation in high-emissions sectors crucial, says IEA
Countries must “supercharge” international collaboration across high-emitting sectors to get on track to curb global warming at no more than 1.5C, according to a report Thursday from the International Energy Agency.
EMEA
European Green Deal and economic competitiveness key issues for EU’s von der Leyen in last speech of her term
European Commission President Ursula von der Leyen confirmed her commitment to the European Green Deal on Wednesday in her last annual speech to the European Parliament before the EU elections next June, though her focus was less on climate action and more on the need to support European industry on their decarbonisation journeys.
Euro Markets: EUAs jump on short squeeze after position data show investors added to short positions
European carbon prices rose strongly on Wednesday afternoon as traders reacted to data showing that investment funds had increased their bearish bets for a third week, accumulating the largest total short position in nearly two years, while UK Allowances fell to a new record low.
EU needs ‘fair’ emissions targets for 2040 and higher carbon pricing in the meantime, experts say
Pursuing an ambitious 2040 emissions reduction target will improve the fairness of the EU’s global contribution to climate action but the bloc needs higher carbon prices today to prevent costly price spikes in the coming years, experts said during a dedicated event on Wednesday.
European Parliament approves deal to set binding EU targets for sustainable aviation fuel uptake
The European Parliament approved a new law on Wednesday that will mean 70% of jet fuel used at EU airports will have to be green by 2050.
UK shipbroker and carbon trader set up partnership to streamline maritime shipping access to EU ETS
A leading British shipbroker has teamed up with a carbon trading house to provide access to the EU ETS for shipowners, as Europe’s market prepares to expand to cover shipping from next year.
British forest carbon data startup raises $2.2 mln in pre-seed funding
A tech startup that offers an AI-powered measurement, reporting, and verification (MRV) service for forest conservation carbon projects, has announced Wednesday a $2.2 million pre-seed funding round.
VOLUNTARY
SBTi ramps up its climate target-checking capacity as more companies sign up
Corporate climate goal assessor the Science Based Targets initiative (SBTi) said Wednesday it plans to increase its capacity to meet demand as a growing number of companies worldwide sign up to its net zero pathway.
REDD credit prices sink further amid slowdown in corporate demand
REDD avoided deforestation carbon credit prices tumbled further on Wednesday, as corporate buyers continued to shun the market that is struggling to shake off hot air criticism and wait to see which units will be eligible for the ICVCM’s integrity label.
Investor initiative identifies barriers to growth for nature-based solutions
A public-private network for investors in forests and nature in its first annual report on Wednesday highlighted a number of case studies demonstrating successful strategies for scaling nature-based solutions (NBS).
Carbon crediting startup receives $4.6 million in seeding to further expand into commercial market
A US-based startup that connects small farmers to the carbon market raised seed funding from a group of venture capitalists and angel investors, the company announced Wednesday.
AMERICAS
California legislature weakens, but passes climate risk disclosure and anti-greenwashing bills
Bills to mandate climate-related financial risk disclosure and prevent voluntary carbon offset greenwashing on Tuesday passed both houses of the California General Assembly, as the two pieces of legislation were amended to have slightly weaker enforcement capabilities before the final votes.
California regulator expands issuance of compliance offsets directly benefitting the state
California this week kept a step ahead of offset issuance levels seen at the same time last year, with nearly two-thirds of their distribution holding direct environmental benefits (DEBs) to the state, ARB data published Wednesday showed.
Washington reveals names of registered participants in cap-and-invest system
The Washington state Department of Ecology (ECY) on Wednesday published the list of entities registered to hold allowances and offsets in the state’s WCI-modelled cap-and-invest programme, with the number of companies roughly 75% higher than entities that have qualified to bid in auctions.
British Columbia government opens consultation for new CCS offset protocol
The British Columbia government on Wednesday released a new draft offset protocol for carbon capture and sequestration (CCS) projects, with different time horizons for monitoring permanence depending on the type of technologies and geologies used.
Canada-based carbon credit firm to list on Nasdaq under $213-mln SPAC deal
A Canadian-headquartered environmental asset investor has signed a $213-million deal with a US-listed ‘blank cheque’ company to help it go public via merger.
ASIA PACIFIC
Concrete magnate calls for Australian CBAM
The only viable way some of Australia’s hardest-to-decarbonise industries will meet the emissions reductions targets mandated by a new and tougher Safeguard Mechanism is with a Carbon Border Adjustment Mechanism (CBAM), according to the CEO of one of the country’s largest emitters.
Australia Market Roundup: More than half of surveyed companies say Australia will need carbon credits to achieve net zero, as ACCUs rebound
A survey of over 200 companies released Wednesday showed that over half of the respondents believe Australia will need to buy carbon credits to meet its net zero goals and most of them have or will buy offsets themselves, as Australian Carbon Credit Units (ACCUs) rebounded over the past few days after a dip late last week.
SK Market: Monthly KAU acution sees lacklustre interest again despite carryover policy update
South Korea’s latest monthly CO2 auction for the current compliance cycle sold only around 30% of the permits on offer Wednesday, as market sentiment remained lukewarm despite the government’s proposed policy change to revitalise the market.
Carbon price could help miners overcome high capital spend on electric mines, group says
Electric mines could decarbonise much of mining companies’ Scope 1 and 2 emissions, while offering health benefits to workers no longer trapped underground with diesel fumes and particulate matter, and could be made more affordable through a price on carbon, a conference heard this week.
Expand ACCUs for biogas pipeline contracts, industrial energy boss pleads
The energy director of a giant Australian brickmaker would like to see Australian Carbon Credit Units (ACCUs) offered for far more biogas projects so large-scale users can better decarbonise via taking biogas from the nation’s network of pipelines.
HK natural resources firm announces first deal as it joins HKEX voluntary market
Hong Kong Exchanges and Clearing (HKEX) has reached a carbon credit deal with a natural resources company with a significant presence in the Philippines, it announced Wednesday.
SHIPPING
Amazon, Electrolux among companies launching zero-emission shipping tender
The Zero Emission Maritime Buyers Alliance, a group within the maritime sector, said Wednesday it has launched its first zero-emission shipping tender, with Amazon and Electrolux among those on board.
BIODIVERSITY (FREE TO READ)
Financials urge global standards body to prioritise biodiversity over social issues
Financial organisations from across the globe have asked an international standard-setting body on disclosures to prioritise researching biodiversity.
New Zealand outfit adds more biodiversity credit types
A New Zealand-based company on Wednesday announced it has launched biodiversity action credits tied to the conservation of two species of bird around the Southern Lakes Sanctuary on the country’s South Island, to add to its existing offerings.
Insurance sector needs to step up to properly underwrite biodiversity risk, report finds
A Switzerland-based international NGO has stressed the importance of insurers in incentivising biodiversity loss, calling on them to integrate biodiversity risk properly within their business activities.
Queensland state govt to fund environmental accounting in bid to capitalise on biodiversity market opportunities
The Queensland state government in Australia on Wednesday said it will fund better uptake of Accounting for Nature’s environmental accounting framework to provide stakeholders with better tools to measure the environment.
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CONFERENCES
Flowcarbon Carbon Smart Summit – Sep. 19, New York City: Your chance to get up to speed on the fast-changing carbon markets at Climate Week NYC! Join us for a full-day/in-person event featuring leading experts working at the forefront of the voluntary carbon markets — from project development and finance to key policy initiatives, corporate sustainability and technology trends. Speakers will include: Mark Patel (McKinsey), Kelley Kizzier (Bezos Earth Fund), Mark Kenber (VCMI), Alexia Kelly (High Tide), Judith Simon (Verra), David Antonioli, Zach Scott (Trafigura), Julie Bennett Bunuan (Truist) — and many more. Registration is free. Sign up today at carbonsmart.global
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
INTERNATIONAL
Trade troubles – The World Trade Organisation (WTO) has raised concerns about growing fragmentation in international trade led by unilateral environmental measures such as the EU Carbon Border Adjustment Mechanism (CBAM) and the US Inflation Reduction Act (IRA). There has been a nine-fold increase in the number of trade concerns raised at the Council for Trade in Goods over the last six years, and the trade body has flagged early warning signs for potential trade disputes. Chief concerns by member nations include the CBAM and other EU Green Deal measures, the US IRA, and Indonesia’s export restrictions on raw materials – leading to a potential downward spiral of tit-for-tat responses and a more fragmented world, dominated by regional trade blocs, said the WTO report. Instead, a renewed move towards re-globalisation is the best way to tackle the problems of security, poverty, and climate change, the body says.
Far fewer steaks – Halving reliance on meat and dairy could cut land-use emissions by as much as 31% by 2050 compared to 2020, according to a new study in Nature Communications. The research found that substituting half of animal products, such as pork, chicken, beef, and milk, consumed globally with more sustainable alternatives such as plant-based milk could “almost fully halt” the conversion of forests and natural land for agriculture, leading to significant environmental benefits around the world, depending on diets, agricultural production, and export levels. For example, China would see the largest reductions in fertiliser use, water use, and emissions from agricultural land use, while sub-Saharan Africa and South America would have the largest share of restored land and subsequent carbon sequestration. The study said that such a change in global consumption patterns would help to meet international agreements on biodiversity and GHG emissions, such as the global land restoration target established by the Kunming-Montreal Global Biodiversity Framework.
VOLUNTARY
Damning report – An investigation into the UN’s use of carbon credits to reach its “climate neutrality” status every year since 2018 has found that the claim is based on using many poor-quality and unviable credits. The year-long study by The New Humanitarian and Mongabay found that more than 2.7 mln UN carbon credits were issued to hydropower and wind projects, which don’t require income from carbon credits to be viable, while at least 13 carbon offsetting projects to have received UN funds have been linked to reports of environmental damage, displacement, or health problems. The investigation saw reporters obtain details about carbon credits purchased by 33 UN entities, representing more than 75% of its reported offset portfolio since 2012. A notably controversial project to have received UN funding is the Teles Pires hydropower plant in Brazil, which has been strongly critiqued for destroying rainforest and Indigenous land. UN entities were also found to know little about the credits they were purchasing, and the impact the funding had.
Net zero credits – The World Economic Forum (WEF), in collaboration with consultancy Bain, has published a report outlining why the VCM represents an important lever to accelerate high-impact climate action, but incentives in the market need to be changed first. The VCM, it argued, is currently at an ‘early adoption’ stage, and to scale, a proper definition for ‘net zero credits’ must be reached. The paper called on regulators, corporates, and other stakeholders to work together to help create this framework, essential to scale the market and close the current climate finance gap.
White out – A junta that seized power in Gabon appointed Colonel Maurice Tocui as the new environment minister, replacing British-Gabonese conservationist Lee White. Tocui will now oversee Gabon’s ambitious green agenda, including its recent debt-for-nature swap to fund marine conservation, Reuters reports. Among other ministers announced by transitional Prime Minister Raymond Ndong Sima are Marcel Abeke, a former executive of French miner Eramet, as the country’s new petrol minister. Abeke was an executive of the company which operates a manganese mine in Gabon until March last year when he was appointed to a new 12-person high commission in charge of evaluating and implementing government action. Gabon’s economy is largely depended on oil exports for revenue. It producers around 200,000 barrels a day (bpd) of crude oil, making it the second-smallest OPEC producer. Other key appointments to the cabinet of 26 ministers, compared with the ousted government of 46, include Mays Mouissi, a Paris-based economist and consultant, as economy minister, and Brigadier-General Brigitte Onkanowa as minister delegate at the presidency in charge of defence.
EMEA
Cocoa collaboration – Nestle and Cargill are trialling an initiative in the UK to produce environmentally friendly fertiliser using cocoa shells from a confectionary site in York as the key input. The two-year regenerative agriculture trial will evaluate the fertiliser’s performance on crop production, soil health, and GHG emissions reduction. If successful, up to 7,000 tonnes of the low-carbon fertiliser will be produced and offered to farmers in Nestle’s wheat supply chain in the UK, equating to about a quarter of the company’s total fertiliser use in the country. More than half of the carbon footprint of UK wheat is related to fertiliser use, and recycling valuable nutrients from waste streams is a great way to lower that emissions impact. The initiative would also help Nestle to achieve its net zero by 2050 goal and to source half of its key ingredients from regenerative agricultural methods by 2050. Cargill will supply the cocoa shells, which it processes at the York facility to become a key ingredient in products like the iconic KitKat and Aero chocolate bars.
BP’s billions – BP will inject up to €10 bln into low-carbon fuels, renewables, and EV charging in Germany by 2030 to rival local power companies, as competition for stakes in the energy transition intensifies, reports U.S. News. At the heart of the oil major’s push are plans to expand its network of EV fast-chargers, decarbonise its refineries, and develop wind power. The investment will include a €678 mln payment that BP has to make after being awarded two licences in Germany’s offshore wind auction in July. BP operates two refineries in Germany, the country’s largest petrol station networks, and employs about 6% of its global workforce there.
Seychelles’ seagrass – Seagrass meadows off the Seychelles will be ensured total protection by 2030, up from 87% this year, in a new commitment by the Indian Ocean island nation, as reported by Bloomberg. The country seeks to prevent erosion of the coastline and to preserve marine habitats in order to keep the carbon-absorbing seagrass meadows intact and to protect the marine ecotourism that helps to sustain the country’s fishing industry. Protecting seagrass forms a part of the nation’s NDC and has been the main ecosystem focus for Seychelles’ Coastal Wetlands and Climate Change Project that began in 2020. The country hosts about 12 species of seagrass across 142,000 ha, which store about 61 mln tonnes of CO2.
Luanda letter – Angola’s state-owned energy firm Sonangol has signed an MoU with BP-Eni joint venture Azule Energy to expand decarbonisation initiatives in Angola, Oil & Gas Journal reports. Key objectives of the MoU includes exploring opportunities for renewables and blue hydrogen projects as well as seeking to conduct joint studies on carbon taxes and credits, while at the same time promoting improved national regulations and best practices in the sector.
AMERICAS
CCS project resumes – The Texas-based Petra Nova project, one of the world’s only two carbon capture and storage (CCS) retrofits at a commercial power plant, has restarted operations after being placed in reserve shutdown in May 2020 due to the oil and power prices collapse during the start of the COVID pandemic. JX Nippon announced that the project restarted on Sep. 5, noting that Petra Nova’s facility, one of the largest carbon capture facilities in the world, can capture 1.4 MtCO2 every year. (Power Mag)
Unconventional CO2 use – The US Department of Energy (DOE) announced Wednesday up to $17.2 mln of funding for evaluating the potential of a process known as called CO2 enhanced oil recovery (CO2-EOR). CO2-EOR is a method of unconventional oil production that uses captured carbon dioxide (CO2) emissions to recover residual oil, while permanently storing that CO2 underground in the oil field. The funding focuses on examining the effectiveness of this process when applied to low-permeability, light-oil fields that have dominated new production in recent years. Applicants must also address the societal considerations and economic impact of their proposed projects.
Mitt’s off – Utah Republican Sen. Mitt Romney, one of the few Republican lawmakers calling for aggressive climate change policies, will leave the Senate and not seek re-election next year, E&E News reports. Romney, 76, has served just one term in the Senate. The 2012 Republican presidential nominee and former Massachusetts governor said a new generation of leaders should take charge. Romney listed climate change, alongside growing national debt and the threats from Russia and China, as one of three “critical challenges” that neither President Joe Biden nor former President Donald Trump, the likely Republican nominee in next year’s race, is confronting.
That’s just peachy – Georgia’s governor is again suspending state taxes on gasoline and diesel fuel, declaring a legal emergency over higher prices caused by inflation. Gov. Brian Kemp signed the executive order Tuesday morning. The suspension of the taxes, at 31.2 cents per gallon of gasoline and 35 cents per gallon of diesel fuel, begins Wednesday and lasts through Oct. 12, AP reports.
INVESTMENT
Space jam – Montreal-based emissions-monitoring company GHGSat raised C$59.9 mln ($44 mln) in its Series C1 fundraising round to accelerate the company’s deployment of satellite and airborne measurement capacities. The equity and debt funding was supported by the investment arms of the Business Development Bank of Canada and the Government of Quebec, as well as Fonds de Solidarite FTQ, Climate Investment, and the Japan Energy Fund. The venture currently has agreements in place to monitor CO2 on three new satellites scheduled to launch before the end of 2023 as well as four new satellites in 2024. (Betakit)
AVIATION
SAF flight – Cemvita Corporation announced an offtake agreement with United Airlines to provide 3.8 bln litres (1 bln gallons) of sustainable aviation fuel (SAF) from Cemvita’s first full-scale SAF plant. The agreement details that Cemvita will provide the airlines with up to 190 mln litres of SAF made from CO2 every year for 20 years.
ASIA PACIFIC
Joining up – Green Carbon, the Japanese project developer in the process of launching a number of rice cultivation methane reduction projects across Southeast Asia as well as at home, has signed an agreement with Indian developer EKI Energy to market and sell EKI’s carbon credits to its budding portfolio of clients, the company announced.
AND FINALLY…
Setting boundaries – For the first time, scientists have mapped out all nine boundary processes that dictate a safe operational space for humanity, indicating the planet’s resilience, according to research published by the Potsdam Institute for Climate Impact Research (PIK) in Science Advances. The study reveals six out of the nine planetary boundaries are being crossed, increasing pressure on all boundary processes and heightening the risk of irreversible changes. This research, which represents the second major update since the introduction of the planetary boundaries framework in 2009, likened the boundaries to a human body’s blood pressure, a metric for assessing Earth’s health and stability. The new assessment offers the inaugural quantification of the “novel entities” boundary, illustrating transgressions due to the accumulation of human-made chemical compounds including micro-plastics and nuclear waste. Moreover, it provides the first scientific evidence to quantify the atmospheric aerosol loading boundary, which, despite not being globally transgressed, is under pressure in regions like South Asia. The study introduces a control variable for biosphere integrity, revealing a boundary that has been crossed since the late 19th century due to the extensive expansion of global agriculture and forestry. The research emphasised that planetary resilience encompasses more than just climate change, highlighting the critical role of biosphere integrity, which is currently being destabilised due to excessive biomass extraction, habitat destruction, and deforestation. The researchers advocate for simultaneous efforts to mitigate global warming and preserve a functional biosphere for future generations.
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