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TOP STORY

UN body hails “quantum leap” in carbon mechanism discussions, but leaves methodologies guidance to go to the wire

The UN body responsible for guiding the Paris Agreement’s carbon crediting mechanism made significant progress at this week’s penultimate meeting, with observers noting they had never seen such consensus among the group, but ultimately failed to adopt final texts on methodological guidance after running out of time, leaving crunch discussions for the final meeting later this year.

VOLUNTARY

Researchers uncover methodological failures in REDD+ projects, leading to widespread over-crediting

Four of the most popular forest protection offset methodologies give excessive flexibility and discretionary space to project developers, resulting in exaggerated climate impacts and overestimation of carbon credits issued, a policy watchdog detailed in a summary report of academic research released Friday.

Investment in carbon market projects to slump after bonanza since 2021 -analysts

Investment in the voluntary carbon market will tumble sharply in the next two years after a surge of money flooded in over the last two-and-a-half years when carbon credits prices hit a peak, according to research published on Thursday.

Removals market to hit $135 bln in 2040 if credits fall to $150/t, forecasts consultancy

The durable carbon dioxide removal (CDR) market could grow to $135 billion by 2040 if the price of units can fall to $150 per tonne, according to projections made in a report this week from one of the world’s largest consultancy firms.

Do not disturb: Non-profit unveils breakthrough radar system for real-time global forest monitoring

A non-profit forest carbon measurement firm has launched a global radar-based alert system to detect tree-related disturbances, offering real-time information from forest in every biome worldwide.

New partnership aims to enhance forest carbon market transparency with space tech, machine learning

A space tech firm and a carbon markets intelligence company have teamed up to enhance the transparency and integrity of forest carbon projects, leveraging earth observation data and machine-learning to produce natural capital data and insights.

Mars unveils ambitious net zero roadmap targeting 50% reduction in value chain CO2 by 2030

Confectionery and pet care titan Mars on Thursday pledged to invest over $1 billion over the next three years as it pursues a halving of its value chain CO2 emissions by 2030 and net zero by mid-century.

France invites offers for carbon credits to cover climate impact of Rugby World Cup

Rugby World Cup 2023 host France has launched a tender seeking offers for carbon credits to compensate for the emissions resulting from the ongoing tournament.

INTERNATIONAL

New York summit to offer opportunity to “hold feet to the fire” on climate finance, though undermined by absentees

Next week’s summit, organised by UN secretary-general Antonio Guterres in New York, will provide an opportunity to hold the rich world to account for their poor record on climate finance and set the tone for core topics of discussion at COP28 in Dubai at the end of the year, a webinar heard Thursday.

Climate change is undermining sustainability goals, says UN

Lack of progress towards climate goals is undermining global efforts to tackle hunger, poverty, ill health, access to clean water and energy, and many other aspects of sustainable development, according to a UN report released Thursday.

Global investment firm announces close of $1 billion climate venture fund

A global investment firm on Thursday announced the closing of one of the largest climate-focused funds to date, and will target investments in early- and growth-stage startups that drive timely decarbonisation.

Research into geoengineering needed to potentially ‘’ease the pain’’ of climate change for future generations, says commission

A moratorium should be placed on the highly controversial practice of geoengineering to control climate change, while allowing for ongoing research into the possibilities of using solar radiation management given the magnitude of the problem and the need to prepare the ground for future generations, an expert body concluded in a report published Thursday.

Global efforts to limit warming to 1.5C require unprecedented investment -WoodMac

In the base case scenario outlined by Wood Mackenzie’s new ‘Energy Transition Outlook’, an annual investment of $1.9 trillion is required to decarbonise the world’s energy sector – a figure that escalates to US$2.7 trillion should the objective pivot to aligning with the Paris Agreement’s 1.5C global warming limit.

CLARIFICATION: Suriname to offer first sovereign forestry credits for sale under Paris’ Article 6

(Clarifies Thursday’s article to indicate that a new platform will be created to sell these units by the CfRN, rather than the organisation’s REDD.plus portal)

AMERICAS

WCI Markets: CCAs reach new record high settlements in thin trade, WCAs inch up on stronger volumes

California Carbon Allowance (CCA) and Washington Carbon Allowance (WCA) prices both increased this week despite volume going in opposite directions, while traders said regulatory drivers in the former market and heightened permit demand in the latter were behind the gains.

Quebec free carbon allowance allocation for 2022 sees a modest decline

Quebec distributed the remainder of its 2022 free carbon market permits on Thursday, with the year-on-year total seeing a slight decrease while the number of recipients remained the same, according to the data released by the province’s environment ministry.

LCFS Market: California prices cool as slow rulemaking timeline stunts rally

California Low Carbon Fuel Standard (LCFS) values dipped on Thursday afternoon to more than reverse a brief early-week rally, as traders said state regulator ARB’s extended timeline for implementing more ambitious carbon intensity (CI) reduction targets will come under pressure from the programme’s exploding surplus bank.

Brazilian fintech company looks to raise $60 mln for second carbon credit fund -media

A Brazilian fintech firm is aiming to raise R$300 million ($61 mln) for a second carbon credit-focused fund after the success of its first offering and hopes to benefit from the proposed emissions trading scheme in the country, a local media outlet reported Wednesday.

EMEA

Euro Markets: EUAs little-changed as short squeeze followed by balanced market with shorts holding steady

European carbon prices ended Thursday little changed after the previous session’s short squeeze-driven rally, consolidating their gains even as short-positioned traders appeared to step back from the market, while participants speculated whether short-term fundamentals are sufficiently bearish to justify the recent decline, and how long the present rally would last.

EU lawmakers adopt position on critical raw materials act

The EU’s Critical Raw Materials Act will accelerate the path towards the bloc’s resource sovereignty and competitiveness, according to members of the European Parliament on Thursday after voting on a united position to take forward into negotiations with member states on a bill designed to reduce the bloc’s dependency on imports of the raw materials indispensable for clean technology.

EU lawmakers seek to bolster consumer rights in bloc’s power market reform

The European Parliament gave the green light to start negotiations with member states on a bill to regulate the EU’s rapidly-decarbonising electricity market, during a plenary session on Thursday in Strasbourg.

Over half of leading corporates on climate action headquartered in Europe, report finds

A study compiling the best companies in terms of their climate leadership has found that 16 of the 27 highest performing firms are based in Europe, while those involved in the fossil fuel industry still failing to prioritise action.

Total announces tenders for 500kt of green hydrogen to decarbonise European refineries by 2030

French oil and gas major TotalEnergies launched on Thursday a call for tenders for the annual production of 500,000 tonnes of ‘green’ hydrogen, which will fall under the firm’s strategy to decarbonise its European refineries by the end of the decade.

ASIA PACIFIC

South Korea sees first listing of KCS-certified carbon credits

A carbon offset marketplace has started to list carbon credits certified under a newly established standard initiated by South Korea’s major trade group, as the country is seeking to support the development of private sector-led voluntary carbon markets.

Singapore exchange, investor BlackRock launch Asia-focused climate ETF

The Singapore Exchange (SGX) has listed an exchange-traded fund (ETF) that selects companies based on their climate actions, the largest equity ETF launched in the city state, with the support of asset manager BlackRock and index provider MSCI, it announced Thursday.

Australian carbon project to fund return to ancestral lands

Australia’s Clean Energy Regulator has approved a project that will fund in part the Kullilli people’s purchase of the pastoral lease to its traditional land, from which it had previously been forcibly removed.

Banks and retirement funds back petroleum, ditch thermal coal

Banks and Australian superannuation funds are no longer interested in backing thermal coal companies but see a longer shelf life for oil and gas companies given it is an energy source that will continue to have a role in the energy mix.

BIODIVERSITY (FREE TO READ)

INTERVIEW: Asset manager creates biodiversity corridors despite credit uncertainty

Climate Asset Management has set aside 10% of a land acquisition in Australia for supporting biodiversity despite no clear way of capitalising on it through nature-related credits, its CEO has said.

City of London targets marine biodiversity in centre for nature finance ambition

The City of London Corporation has called for the UK to include marine biodiversity in its nature credits market as a “matter of urgency” as part of its ambition for the country to become a global nature finance centre, it has said.

Robust dialogue can set biodiversity credit market on the right start, says environmental NGO

A global environmental NGO has released a whitepaper outlining their position on biodiversity credits, as it seeks to establish high integrity across the emerging market.

Impact loan to set Philippines MPAs on track to economic independence

The philanthropy arm of asset manager UBS has provided an impact loan designed to enable the manager of a group of essential Marine Protected Areas (MPAs) in the Philippines to implement a number of revenue-generating initiatives, in what the parties say is a transformative deal for ocean conservation.

UK’s rare species get £14.5 million funding boost

The UK government on Thursday announced fresh funding for ongoing efforts to boost species recovery in one of the world’s most nature-depleted countries.

Orsted urges renewable energy developers to set net-positive biodiversity strategies

The largest offshore wind developer in the world on Thursday called on all renewable energy developers to set net-positive biodiversity targets when developing projects.

Biodiversity Pulse Weekly: Thursday September 14, 2023

A weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).

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Premium job listings

• Senior Technical Specialist, REDD+ and Climate Policy, Fauna & Flora – Liberia
• EMEA Policy Editor, Carbon Pulse – Brussels/London/Remote (in Europe)
• Manager, REDD+ Government and Technical Coordination, Verra – Remote (Worldwide, on US business hours)

Or click here to see all job listings

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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

Border warning – The EU should ensure its CBAM on imports of high-carbon goods complies with WTO rules, China said on Thursday, and not overstep agreed global green trade policies while avoiding creating protectionist measures and green trade barriers. A Chinese trade ministry official said countries should adhere to multilateralism and the principle of common but differentiated responsibilities, Reuters reported. The EU has continually pointed out that it designed CBAM to be compatible with WTO rules, in that it applies the same carbon price on imported goods as on domestic EU producers.

EMEA

Un-Maersk-ed – Shipping giant Maersk has set up a new company to produce green methanol in an attempt to increase supply of the fuel that the Danish group views as essential to decarbonise the pillar of global trade, the FT reports. The start-up, to be called C2X, is looking at green methanol projects close to the Suez Canal in Egypt, the port of Huelva in Spain, and the US, India, and Australia. Maersk has hit out at the oil industry for not producing cheap enough green fuel, leading to the founding of C2X as shipping proves to be one of the most difficult sectors worldwide to decarbonise.

Electric car backlash – The topic of electric car subsidies could spark a trade rift between the economic powerhouses of the EU and China, as China’s Commerce Ministry warned that the EU decision to launch an investigation into Beijing’s state subsidies for EVs will have a ”negative relationship” on the bloc’s relations with China, reports Bloomberg. The EU probe into Beijing’s electric car subsidies is a “naked act of protectionism” said the ministry, while the EU claims that it is trying to protect jobs and supply chains on its own soil. Shares of leading Chinese EV makers including BYD and SAIC Motor declined slightly on Thursday, following the news. Yet any immediate impact of potential European tariffs on China’s economy will likely be limited, given that over 80% of passenger cars produced in China were sold domestically from Jan-Aug 2023.

More disclosure – The European Commission launched two consultations, a targeted and public one, to gather feedback on a regulation that will set out how financial players will have to communicate about sustainability to investors, the Sustainable Finance Disclosure Regulation (SFDR). The SFDR has been in application since March 2021 and is designed to bring greater transparency to the market and help investors who want to funnel their money into companies and projects that have sustainable objectives. The consultation will run until Dec.15.

Great British warming – The UK government is gearing up behind greater energy efficiency with the launch of the Great British Insulation Scheme that will mobilise £1 bln of funding to help over 300,000 households curb their energy bills. The scheme is expected to enable energy bill savings of £300-£400 per year through energy efficiency improvements such as roof, loft, or cavity wall insulation to properties in lower council tax bands that also face relatively poor levels of energy efficiency. It is expected to address more than 300,000 inefficient homes across the country, and a new online checker tool launched today will allow interested households to check whether they are eligible. (BusinessGreen)

Pharma lock-up – AstraZeneca has struck a £100 mln 15-year biomethane offtake deal with Future Biogas to supply 100 GWh of heat per year to meet the needs of three major UK pharmaceutical manufacturing facilities, with CO2 from the biogas plant set to be captured and then stored under the North Sea, it announced today. Once operational in early 2025, the AD plant is to deliver UK’s first unsubsidised, industrial-scale supply of domestic biomethane directly to the UK gas grid, with associated Renewable Gas Guarantee of Origin (RGGO) certificates transferred to AstraZeneca while saving the firm 20,000 tonne of CO2 a year. (BusinessGreen)

New DAC unit – Skytree, an Amsterdam-based climate tech startup, announced its inaugural Direct Air Capture (DAC) modular unit Skytree Cumulus, with its first units to ship in early 2024, according to its press release. After being installed onsite at a vertical farm, greenhouse, or any Controlled Environment Agriculture (CEA) business, the unit captures CO2 from the ambient air which can be used by indoor farmers and greenhouse growers in the production of food, algae, vaccines, and flowers. CEO of Skytree Rob van Straten expressed excitement about the company’s achievement, stating, “By enabling the generation of CO2 onsite at farms and greenhouses, we are taking a significant step forward in helping CEA businesses reduce their carbon footprint and transition away from the fossil fuel industry as a source for CO2 supply.” The company had announced a $6 mln fundraise in June to ramp up its CO2 storage and utilisation potential for agriculture operations and set up an American branch.

ASIA PACIFIC

Selling sun – Exports of solar panels from China increased by 34% in the first half of 2023 compared to the same period last year, according to a report from think-tank Ember. The report analyses Chinese customs data on exports of solar modules in the first half of the year, finding that more than half (58%) of the solar modules exported from China in the first half of 2023 were destined for Europe. Brazil is the next biggest importer, and Africa was the region with the largest percentage growth, driven by South Africa.

Indirect coal backer – A coalition of green groups has submitted a formal complaint to the World Bank for the International Financial Corporation (IFC)’s involvement in Indonesia’s two coal-fired power plants, Reuters reports. IFC, the World Bank’s private-sector subsidiary, indirectly backs the Suralaya coal-fired power complex via its equity investment in Hana Bank Indonesia, one of the project’s financiers, the report said. Building two more plants for Suralaya would emit 250 mln tonnes of climate-warming CO2 into the atmosphere, according to the groups.

Farmers needed – Tokyo-based climate startup Green Carbon is calling for rice farmers in the Niigata region to participate in a carbon credit creation project, based on a methodology under the domestic J-Credit scheme, according to a company statement released Thursday. Around 70 corporations and rice field farmers with ​​roughly 5,000 hectares already joined the initiative during the first recruitment period (May to Aug. 2023), the company said. Green Carbon is also pushing for the development of rice-focused projects beyond Japan, with ongoing projects in Vietnam and the Philippines.

The more, the better – Offset provider Bywill has inked an agreement with Hiroshima Bank to provide environment value-related services to the regional lender’s corporate clients, it announced Thursday. That followed a similar partnership signed last week between Bywill and Sumitomo Mitsui Banking Corporation (SMBC), one of Japan’s largest banks. Bywill said it aims to support decarbonisation in all 47 Japanese prefectures, promoting the creation and distribution of carbon credits in each region.

New platform – The Green Digital Economy Platform (GDEP), an innovative international initiative supported by corporates from South Korea and Indonesia, has been launched to empower 62 mln Indonesian farmers with AI and new technology, the companies announced this week. The GDEP aims to drive transformative digital innovations using agri-tech and climate tech, and plans to implement a framework for carbon offsets valuation and carbon trading, according to the statement. The investment in the platform is expected to reach more than $1 bln.

AMERICAS

Joint claims – The province of Alberta and the Canadian federal government are working together to account for potential emissions reductions from countries that swap coal-fired electricity with Canadian LNG, using Article 6 of the Paris Agreement, the National Observer reported Thursday. Experts have said that Canada would have to negotiate with other countries like China that import Canadian LNG to receive emissions reduction credits. However, China could argue that it should get emission credits when Canadian companies installed Chinese-made solar panels, experts countered. Critics of the plan condemned the discussions that allowed companies to continue to profit from fossil fuels.

Oil cap Alberta – Between 57% and 62% of Albertans support a national oil and gas cap, according to two polls conducted at the same time. Alberta’s United Conservative Party government has promised to fight a forthcoming national oil and gas cap from Justin Trudeau’s federal Liberal administration. But polling firms Leger and Research Co. discovered surprising attitudes backing the environmental policy in Canada’s most oil-rich province. (CBC)

SEC TBD – Gary Gensler, chair of the US Securities and Exchange Commission, notified Tuesday that the agency has not released a final rule requiring climate risk disclosure citing public concern regarding the need for companies to report Scope 3 carbon emissions across their supply chains. Gesler explained in a testimony to the Senate Banking Committee that the SEC is considering the public comment letters about the proposal for the climate risk disclosure rule, many of which had asserted that Scope 3 disclosures would pose challenges for small businesses. The chair did not provide an estimation regarding when the SEC will adopt a final regulation, noting that rule revisions can take between 12 to 24 months. (Utility Dive)

Appliance alliance – Appliance manufacturers and an assortment of environmental groups joined forces Monday to push the US Department of Energy (DOE) to adopt a broad plan for the implementation of an array of controversial energy regulations. The two sides – led by led by the Association of Home Appliance Manufacturers (AHAM) and the Appliance Standards Awareness Project (ASAP) – reached consensus recommendations for standards on a range of appliances, including stoves, washers and dryers, dishwashers, and refrigerators and freezers. The proposed standards would drastically reduce GHG emissions and potentially prevent legal challenges from either of the sides. In the past, the DOE has embraced similar consensus agreements between potential litigants. (E&E News) 

SCIENCE & TECH

Ingredient footprints – Chemicals giant BASF has calculated the Product Carbon Footprints (PCFs) for various products such as vitamins, carotenoids, beverage processing polymers, feed enzymes and feed performance ingredients for the human and animal nutrition markets, which are now available upon customer request. The methodology used is certified by TÜV Rheinland according to the internationally recognized standard, ISO 14067:2018 and the PCF totals the GHG emissions generated by a product over its different life stages. The PCF for specific vitamin A and E products is at least 20% better than the global market average, says BASF. While the company’s green energy investments should further reduce the PCF scores in future.

AND FINALLY…

Back to Asics – Alongside other shoe brands debuting low-carbon shoes, Asics announced this week the launch of its Gel-Lyte III CM 1.95 sneaker. The company said in the statement that the shoe is the lowest-carbon sneaker on the market. The shoe features carbon-negative foam in its midsole, sock liner, and mesh made with recycled materials and solution-dyed polyester. Priced at $150, the shoes are available in cream/glacier gray colours. As the retail sector faces increased scrutiny over its environmental impact, shoe brands are developing more sustainable footwear. Asics is working toward a goal of net zero emissions by 2050, and reduced carbon emissions by 22% from its direct operations in 2022. (Retail Dive)

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