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TOP STORY

PREVIEW: Calls for Green Climate Fund reform mount as pledging round struggles to attract cash

Ahead of a high-level pledging conference this week, observers have warned that the utility of the Green Climate Fund (GCF) is under threat unless critical reforms are made, due to weak commitments from rich nations in the latest call for cash and a sluggish project approval process.

INTERNATIONAL

FEATURE: Environmental interests are a driving force behind rising land prices

Growing awareness of natural capital opportunities such as carbon and biodiversity credit-generating projects is an important factor driving up land values, particularly in supply-constrained markets such as the UK, according to industry sources.

VOLUNTARY

INTERVIEW: Startup reforestation company eyes lucrative ITMO market between Ghana and Singapore

A startup reforestation company with plots in Ghana has estimated that its breakeven costs could be as low as $6 per credit, as it eyes the potentially lucrative market for buyers of correspondingly adjusted ITMO credits in Singapore, while the African nation continues to advance its work to export units.

Verra releases new ARR methodology

Global carbon standard Verra on Tuesday released its new methodology for afforestation, reforestation, and revegetation (ARR) projects for its VCS programme that will allow the use of remote-sensing-enabled dynamic performance benchmark for the first time.

Carbon credit ratings agency starts grading projects before credits are issued

A carbon credit ratings agency has for the first time awarded a score to a project that has yet to issue any credits, as it seeks to expand its role from the secondary to the primary voluntary carbon market.

In quest for carbon offsets, monoculture tree-planting projects threaten biodiversity, deliver minimal climate benefits -study

Massive tree-planting carbon offset projects, including those growing single species, are inadvertently degrading tropical ecosystems and biodiversity by focussing solely on carbon sequestration.

CDR platform launches with almost 1 mln forward credits on offer

A forward-crediting platform for carbon dioxide removal (CDR) projects has launched Tuesday with nearly 1 million credits available for buyers, the firm announced in a press release.

Occidental, ADNOC team up to explore first 1-Mt/yr DAC facility outside US

Occidental Petroleum, through its subsidiary 1PointFive, and the Abu Dhabi National Oil Co. (ADNOC) on Tuesday unveiled an agreement to commence a jointly-funded preliminary engineering study for a 1 million tonne/year direct air capture (DAC) facility in the UAE.

UAE energy company partners with Abu Dhabi Environment Agency to plant 700k mangroves by 2030

An Abu Dhabi-based energy company has partnered with the emirate’s Environment Agency to plant 700,000 mangroves through 2030, supporting both the UAE’s net zero ambitions and the wider goals of the Mangrove Alliance for Climate (MAC).

AMERICAS

California releases options for cap-and-trade allowance budgets to 2045, details annual scenarios to 2030

California regulator ARB presented further modelling of allowance budgets for its cap-and-trade programme until 2045 and opened discussion of accounting for emissions from electricity imports in unlinked jurisdictions with CO2 pricing, in materials released Tuesday ahead of the agency’s forthcoming pre-rulemaking webinar this week for its climate regulation.

US hydrogen hub funding to incentivise demand along with technology agnostic production

Stakeholders discussed leveraging US hydrogen hub funding to enable technology agnostic production pathways, incentives, and other demand strategies, at a conference on Tuesday.

North Carolina passes law barring state participation in power sector cap-and-trade

North Carolina Governor Roy Cooper (D) allowed the state’s budget bill to go into effect on Monday, blocking the state from implementing a power sector cap-and-trade programme, following years of efforts from environmental groups motioning for state participation in RGGI.

Alberta TIER market credit prices inch upwards in September, as vintage value differential grows

Spot credit prices under the Alberta Technology Innovation and Emission Reduction (TIER) programme in September edged marginally above August prices, while newer vintage units widened their premium to older-dated credits, said a report published Tuesday.

Canadian carbon credit financier announces offtake agreement with construction association

A Canadian carbon credit firm on Tuesday declared an offtake agreement with a British Columbia-based non-profit construction association to abate emissions within the construction industry.

EMEA

EUAs set to reach more than €150 by 2030 as allocation adjustment and additional supply needed by 2029 –analysts

EUA prices are set to track higher over the remainder of the carbon market’s current trading phase, reaching more than €150 by 2030 amid a tightening annual cap that will require cross-sectoral culling to free allocation, while attention will switch to deciding the EU’s 2040 climate target and decarbonising industry, according to analysts.

EU’s proposed Green Deal and climate commissioners fail first Parliament test

Both candidates to be the next EU commissioners for the European Green Deal and for climate action failed to secure the required two-thirds majority of lawmakers to be confirmed by the European Parliament’s environment committee (ENVI) on Tuesday.

Euro Markets: EUAs drop below key support to four-month low as energy prices extend losses

European carbon prices declined for the sixth time in the last seven days, dropping to their lowest in four months, as weakening margins for coal-fired power plants depressed demand for EUAs, while German baseload power fell to its lowest since March 2022 and natural gas prices also fell by 6% for a second day.

France-based asset managers launch Paris-aligned multi-thematic climate fund

A French asset manager is launching a multi-thematic climate fund targeting companies that adopt and disclose decarbonisation strategies aligned with the goals of the Paris Agreement.

ASIA PACIFIC

NZ forestry group to file judicial review into forestry charges, ETS service fees

A New Zealand forestry group has confirmed to Carbon Pulse it intends to file a judicial review into the Ministry of Primary Industries’ (MPI) announced per-hectare annual charge and service fees by the end of the week.

Australia’s Clean Energy Regulator, Agriprove rebuff soil carbon concerns, as more ACCUs issued

The Clean Energy Regulator and soil carbon project developer Agriprove have rejected concerns from scientists around the issuance of soil Australian Carbon Credit Units (ACCUs) as more credits from the project type have been issued.

Conservation group urges govt to adopt stronger ACCU scheme principles

A conservation group has called on the Australian government to apply stricter integrity principles to the Australian Carbon Credit Unit (ACCU) scheme, saying recently proposed measures “appear to serve optics more than material outcomes”.

Australian government seeks input on its Gordian knot of gas policy

Australia has released its future gas strategy paper for consultation, via which the government hopes to support Australia’s gas industry of both users and producers, its vast LNG exports to allies, and its 43% emissions cut to 2030.

Taiwan to introduce blue carbon methodology

Taiwan is planning to introduce an offset methodology for blue carbon, as the island aims to secure more carbon credits from nature-based projects following the launch of a government-backed voluntary marketplace.

BIODIVERSITY (FREE TO READ)

A global biodiversity observation system will be essential, says academic

Establishing a worldwide system of biodiversity networks sharing harmonised data is critical for society, an academic has said.

Tech company unveils ground-truthing platform for corporate nature disclosures

A UK-based tech company on Tuesday launched a first of its kind cloud-based platform powered by environmental DNA to “equip business for [the] nature reporting boom”, it said.

INTERVIEW: Consultancy wants property developers to avoid offsets by integrating biodiversity

Property developers should take advantage of the economic value of nature and integrate biodiversity into their projects, rather than just offsetting their impact, according to software and consultancy company Endangered Wildlife OU.

New funding to boost investment-readiness for nature markets in Scotland

The Scottish government has announced an open call for projects aiming to support current and future nature markets, which it hopes will drive equitable financial investment in natural capital, among broader calls for UK-wide policy cohesion to help promote the emerging biodiversity market.

Biodiversity Pulse: Tuesday October 3, 2023

A twice-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

• Business Development Manager, Abatable – London (Hybrid)
• Carbon Standards Specialist, Space Intelligence – Edinburgh
• GHG Management, Environmental Specialist, First Environment – Sacramento
• Project Administration Specialist, Climate Change, First Environment – Sacramento
• EMEA Policy Editor, Carbon Pulse – Brussels/London/Remote (in Europe)

Or click here to see all job listings

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CONFERENCES

Carbon Forward 2023 – Oct. 11-13, London: Join us for Europe’s pre-eminent carbon markets conference, covering the EU and UK ETS as well as international voluntary markets and compliance schemes elsewhere in the world. The event brings together attendees from all related sectors, including traders and intermediaries, big emitters, financiers, project developers, analysts, consultants, NGOs, and government representatives. Topics to be covered include carbon pricing regimes globally, investment opportunities, Article 6 cooperation, CBAM, net zero strategies, and de-risking the voluntary carbon markets. Passes are going fast to secure yours today!

Private Land Conservation Conference | Unite for Nature – Oct. 16-18, Canberra: Nature has been elevated to the world stage and the Australian Land Conservation Alliance’s Private Land Conservation plays a crucial role in exploring the challenges and solutions as we navigate the transition to a nature positive future. Featuring Australian and international conservation practitioners, policy experts, business, finance and industry leaders, landholders, and First Nations groups on the frontlines of conservation, the conference explores pathways to reversing nature loss. To register: www.alcaconference.org.au/registration

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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

Continued growth – Oil demand will continue to grow this year at about 2.4 mln barrels a day, according to the secretary general of OPEC+. Oil prices have risen of late as producers have tried to restrict output to support the market, with Brent crude exceeding $95 a barrel on Tues. amid expectations of shorter supplies. Saudi Arabia has said it would be cutting its production of crude oil by a million barrels a day to boost prices, and there are concerns that fuel prices could rise in the coming 10 months, stoking inflation. (BBC)

Slow and steady doesn’t win the race – Delaying swift action and taking a slow route to net zero emissions by 2050 will worsen the climate crisis even if the goal is achieved by that date, warns the new IPCC chair, as reported by The Guardian. Prof Jim Skea said that postponing climate action triggers larger increases in global temperature rise and that every fraction of a degree matters. “What determines global warming is not the timing of net zero, but the pathway by which you get there. It is the cumulative emissions of carbon dioxide over time that are the main factor,” he said. The IPCC does not comment on the climate policies of individual nations, but Skea’s comments on Monday clearly suggest that the UK government’s recent weakening of green measures is detrimental to hastening climate action. “The more [oil and gas] you add to the reserves, the greater the percentage you would need to leave in the ground to stay within carbon budgets,” said Skea, in reference to the UK’s continued support for North Sea oil and gas.

Amazon money – Switzerland and the US have donated $8.4 mln to Brazil’s Amazon Fund to help stop deforestation and preserve the world’s largest tropical rainforest, the Brazilian National Development Bank (BNDES) that manages the fund said on Tuesday. Switzerland contributed CHF 5 mln ($5.4 mln) and the US $3 mln, the bank said in a statement. The US donation is part of a $500 mln contribution over five years announced by President Joe Biden in April at a climate meeting where President Luiz Inacio Lula da Silva repeated Brazil’s pledge to reach zero deforestation by 2030. (Reuters)

EMEA

CC-yes! – UK oil services firm Petrofac said it received a contract worth more than $600 mln from UAE state oil and gas firm Adnoc for the Habshan CCS project, as the Abu Dhabi-based company steps up its decarbonisation plan. The engineering, procurement, and construction contract from Adnoc Gas represents a boost for Jersey-based Petrofac, which in August posted a half-yearly loss, Reuters reports. The CCS contract involves delivery of carbon capture units, associated pipeline infrastructure, and a network of wells for CO2 recovery and injection. Energy producers, including COP hosts the UAE, have identified CCS as key to cutting emissions without scaling back oil and gas output and have started to invest in such technology at a time countries around the world are increasingly pushing towards cleaner fuels.

Italian incentives – Italy is considering introducing incentives for car purchases that would factor in carbon emissions in the manufacturing and distribution process, and thereby potentially help discourage the purchase of made-in-China EVs, reports Reuters. The scheme would be similar to one adopted in France last month, whereby car models would be scored against government-set thresholds for the amount of energy used to make their materials, in their assembly and transport to market, as well as what type of battery they have. EU competition rules do not allow countries to favour local producers, however, Paris has said that its criteria are compliant with WTO rules because exemptions are allowed for health and environmental reasons. China-made cars would likely be ineligible for bonuses due to the country’s industry being largely powered by coal-generated electricity, with its vehicles shipped globally by boat. Italians have so far used 80% of the existing incentives to buy vehicles produced abroad, so the government is hoping the change will promote a shift to more environmentally friendly, local vehicle purchases.

Saving grace – Canada-based investor Brookfield is acquiring Banks Renewables, one of the UK’s largest renewables developers, in a boost to the country’s wind sector after recent setbacks. The deal will be worth almost $1 bln and comes as other developers have warned of a challenging environment for wind power due to spiralling costs, reports the FT. Banks Renewables is part of the family-owned Banks Group and owns operational onshore wind farms in northern England and Scotland, as well as plans for more onshore wind, solar, and battery assets. The deal is led by Brookfield’s second Global Transition Fund, which started raising money this year to invest in projects to accelerate the energy transition away from fossil fuels. Banks Renewables’ total portfolio comprises just over 4 GW, including 300 MW of operational wind farms and 300 MW of projects to have received planning permission.

Climaticide – Four environmental organisations have started legal action against France’s largest energy company TotalEnergies over the impact of the group’s oil pipeline development in Uganda and other fossil fuel projects, Reuters reports. Darwin Climax Coalitions, Sea Shepherd France, Wild Legal, and Stop EACOP-Stop Total en Ouganda said they have filed a complaint with a prosecutor’s office over TotalEnergie’s activities, which they say represent climaticide. They say the company approved more fossil fuel projects than any other oil major between 2022 and 2025, including the $3.5 bln East African Crude Oil Pipeline (EACOP).

Call for help – The British Net Zero Technology Centre (NZTC) and North Sea Transition Authority (NSTA) have launched a call for emissions measuring and monitoring technologies, to give companies the opportunity to have their technology featured in a new roadmap. The plan, developed as a collaborative initiative between the two bodies, will provide asset operators of both fixed and floating installations and onshore terminals with data on current and future emissions measuring and monitoring technologies, a statement read. It will also include readiness of technologies, modification requirements, and indicative implementation costs. Technology developers with solutions focusing on power generation, flaring, and venting, that are nearing deployment capability or already deployed are encouraged to apply. Submissions will be evaluated for suitability in the roadmap against a range of criteria including suitability for offshore application, scale of modifications needed, and measurement accuracy.

ASIA PACIFIC

Asset acceleration – The Asia Investor Group on Climate Change (AIGCC) has announced a new asset owners working group for Asia’s pension funds, sovereign wealth funds, and insurers – to start in Jan. 2024, it announced. The AIGCC Asset Owners’ Working Group will meet the growing interest in net zero alignments from Asian sovereign wealth funds, pension funds, and insurers, it said. The group noted that asset owners across Asia were speeding up their net zero alignment work, as they recognised they could not divest from climate risk. Through the working group, asset owners will learn from experts on net zero investing, develop capacity to align investor portfolios with the goals of the Paris Agreement, and build momentum for taking climate action to meet their fiduciary duties, AIGCC said.

ESG pact – Japanese pension funds managing 90 trillion yen ($600 bln) will join a global initiative for responsible investment, according to Bloomberg, which cited remarks by Prime Minister Fumio Kishida. Seven of the country’s public retirement funds will start preparations to sign the Principles for Responsible Investment, a UN-supported network of investors that has grown to more than 5,000 signatories.

Solar project – Japanese trading house Sojitz and top refiner Eneos have launched a 204 MW solar park in Queensland, Australia, they announced this week. The joint venture, named Edenvale Solar Park, is the largest solar project in Australia to be undertaken by Japanese companies. Around 400,000 solar panels will generate enough renewable energy to supply  60,000 homes, which is enough to power a city the size of Cairns, according to the statement.

Green queen – India aims to develop capacity for exporting about 5 mln tonnes per year of green hydrogen and its derivatives in the next seven years, the Times of India reported Sunday. The Indian shipping and port ministry has identified three major ports, Kandla, Paradip, and Tuticorin as hubs for green hydrogen, green ammonia, and green methanol. Further, NTPC Green Energy (NGEL), an Indian public sector undertaking will form a joint working group to set up a green hydrogen hub at Syama Prasad Mookherjee Port, Business Standard reported. The two entities signed an MoU last week, aiming to explore opportunities for the production, storage, handling, and bunkering of green hydrogen, green ammonia, and its derivatives. The South Asian nation plans to become a leading producer and exporter of green hydrogen in the coming years.

AMERICAS

Pipeline problems – On Tuesday, a dozen Democratic members of the US Congress sent a letter to President Joe Biden requesting a moratorium on any new carbon capture and storage (CCS) pipelines until federal safety regulations are finished. The Pipeline and Hazardous Materials Safety Administration (PHMSA) is working on new safety regulations for carbon pipelines that it has said will be proposed in 2024. PHMSA has sought to strength safety standards since a 2020 carbon pipeline rupture in Mississippi hospitalised 45 people. Reps. Ilhan Omar and Jesus “Chuy” Garcia are among the members to have a sent the letter, which is also endorsed by environmental organisations that are opposed to the pipeline projects, such as Food & Water Watch and the Sierra Club. CCS is a key element of Biden’s climate agenda, but some landowners along the routes of major proposed CCS pipeline projects in the Midwest are resisting, in part due to safety concerns. (Reuters)

Carbon-conscious campaigns – Supply-side digital advertising platform OpenX and climate management software company Cedara announced Tuesday a partnership to provide automated emissions measurement on media and advertising campaigns, reduced campaign emissions, and a custom carbon offset portfolio solution for remaining campaign emissions via Cedara’s platform. The fully automated solution will allow buyers to sync organisational emissions data with media buys, access highly curated and third-party certified projects, achieve transparency and customisation into how and what offsets are leveraged through the creation of custom offset portfolios, and onboard and measure emissions from OpenX’s campaigns, according to the release. With this integration, OpenX claims to be the first digital advertising company to offer such services.

Forest bill – A bipartisan group of US senators has proposed a bill that would require the US Department of Agriculture (USDA) to develop a method for studying the carbon impacts of forest management, according to a Tuesday press release. The Timber Innovation Act for Building Rural Communities Act was introduced by Senator Angus King (I), Ron Wyden (D), and Mike Crapo (R). It would require the USDA to consult with Tribes, state foresters, and private sector partners in establishing a platform for measuring, monitoring, verifying, and reporting data about the carbon impacts from forest management and wood products. It would also reduce the matching requirement for the existing Wood Innovation Grant Program and direct that priority be given to proposed projects in communities with higher-than-average unemployment, that recognise or enhance carbon reduction strategies in building design, or report on the resilience and economic benefits of the proposal. Finally, it would also set up several grant programmes to support wood products businesses. 

Revised Washington allocations – The Washington Department of Ecology (ECY) on Tuesday released revised mid-year figures for its no-cost allowance allocation to electric utilities under the state’s cap-and-invest programme, as required by regulation. The state allocated 14.18 million free allowances to the utilities for 2023, up slightly from 14.15 mln as calculated earlier this year. The revised mid-year update then lists 13.36 mln in 2024 and 12.89 mln in 2025, compared to 13.32 mln in 2024 and 12.84 mln in 2025 in the initial allocation estimates.

NY EJ policy – The New York State’s Department of Environmental Conservation (DEC) released draft policy DEP-23-1 outlining the type of analyses that DEC staff are required to conduct and procedures to review the analyses in line with Section 7(3) of the state’s Climate Leadership and Community Protection Act (CLCPA), the agency announced Tuesday. Sec 7(3) requires all state agencies offices, authorities, and divisions to not disproportionately burden disadvantaged communities and prioritise reductions of GHG emissions and co-pollutants in disadvantaged communities. Draft policy is open for public comment till Nov. 27. Additionally, the NYSDEC 13-member Climate Justice Working Group (CJWG) will hold a meeting on Wednesday, Oct. 4, 2023 at 1400 Eastern. The CJWG is tasked with establishing criteria for identifying disadvantaged communities for the purposes of co-pollutant reductions, GHG emissions reductions, regulatory impact statements, and the allocation of investments pursuant to the CLCPA. Members of the public are welcome to listen to the meeting via webcast and preregistration is strongly encouraged.

VOLUNTARY

Bad Apple – Tech giant Apple’s recent announcement of its first-ever carbon neutral product has been questioned in a new report by a Chinese environmental research organisation that gathers and tracks data on GHGs from China’s manufacturing sector, which makes the majority of Apple products. As part of a high profile environmental campaign, the US firm announced on Sep. 12 that its new Apple Watch was carbon neutral, but the non-profit Institute of Public and Environmental Affairs (IPE) claimed the company may be overstating its efforts to address climate change. The organisation has been analysing the environmental performance of production facilities in China for more than a decade. In response to the IPE report, Apple said the carbon neutrality of its watch line has been independently verified. (Inside Climate News)

AND FINALLY…

Robusta just got robust-er – Climate change poses a huge threat to the coffee business and to farmers, with up 50% of land area currently suitable for growing coffee threatened by rising temperatures, according to the Inter-American Development Bank. But Starbucks, which says it purchases about 3% of all coffee globally, has been getting ahead of the game by developing new arabica varietals that are specifically cultivated to be more resilient to a warming planet. Agronomists at the coffee chain have for over 10 years been breeding different types of coffee trees, trying to find ones that will yield a high amount of fruit in a relatively short amount of time and also resist coffee leaf rust, a disease that attacks coffee trees and is exacerbated by climate change. They have landed on six varieties that fit the bill and meet Starbucks’ standards for taste and flavour. Starbucks’ impact is globally dispersed — it buys from about 400,000 farmers across 30 countries. (CNN Business)

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