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TOP STORY
WCI Markets: CCAs set new record high following workshop notice, WCAs climb on thin volume
California Carbon Allowance (CCA) values rocketed to a new all-time peak after the WCI jurisdictions said they will present modelling of how slashing their cap-and-trade budgets could impact permit prices, while Washington Carbon Allowance (WCA) prices jumped early in the week despite the market remaining relatively illiquid.
VOLUNTARY
Verra provides key dates on digitalisation rollouts, working on ICVCM application
Global carbon standard Verra laid out the next steps in its charm offensive at a conference on Thursday, as it works to reform itself in response to evolving expectations and standards from stakeholders.
Carbon markets advisory firm to launch interactive map of global forest offset projects
An analysis and consulting firm is to launch an interactive map showing the location of voluntary carbon forest projects around the world using data pulled from all major offset registries, as it hopes to provide greater visibility for verification bodies, regulators, and market participants.
Asset manager completes £300m fundraising for forestry carbon credits fund
A London-headquartered investor has secured the target figure of £300 million for its forestry and carbon credits fund at its final close, Carbon Pulse has learned.
Don’t wait around for digital MRV standards to develop, move now -World Bank
Digitalisation of the carbon credit verification process could and perhaps should spell the end of the current MRV process and VVBs, according to a senior World Bank official speaking Thursday at a conference.
US-based voluntary carbon market platform adds removals to its portfolio offerings
A California-headquartered carbon solutions provider announced Thursday that it will offer clients access to carbon removal credits based on an array of project types in the latest version of its signature product.
Foundation rapidly grows portfolio of ‘meaningful’ climate projects
A foundation, largely funded by companies charging an internal carbon price to cover emissions, this year aims to almost double the number of projects it supports as an alternative to offsetting for beyond value chain mitigation.
EMEA
Euro Markets: EUAs drop to lowest in more than five months, find support from compliance and speculators
European carbon prices broke below two key support levels to reach their lowest in more than five months on Thursday, though trading remained within a fairly narrow range amid some compliance and speculative buying as participants eyed tests of further support levels, while energy markets were little changed.
European Commission seeks opinion on which carbon removal methodology to develop first
The European Commission is open to feedback on which carbon removal methodologies it should focus on developing first, according to an official speaking on Thursday at the close of a two-day forum focused on designing blueprints to credit industrial carbon removals.
EU keeps focus on clean energy and minerals in Global Gateway aid deals
The EU has put a particular emphasis on renewables and critical raw material’s chains when mobilising €300 billion through its Global Gateway programme for developing nations, aid deals signed on Wednesday and Thursday showed.
Agtech company expands soil carbon projects into Eastern Europe, including Ukraine
An agtech company has announced a major European expansion to increase sponsored farmland by over 500,000 hectares and enable farmers to generate upwards of 300,000 soil carbon credits a year.
ASIA PACIFIC
Indian verification standards lack integrity, sacrificing the overall quality of credits -expert
The verification standards followed by carbon market participants in India lack integrity and the government can make better use of the existing standards approved internationally, an expert told a conference Thursday.
Australia Market Roundup: Govt commits A$69 mln to renewable hydrogen hub, ACCU issuance drops
The Australian government will invest A$69.2 million ($43.3 mln) to develop a renewable hydrogen hub in Queensland, it announced Thursday, as the latest weekly issuance of Australian Carbon Credit Units (ACCUs) fell to just 40,000 units.
Fiji signs MoU with Korean company for mangrove project
The Pacific island of Fiji on Thursday signed a Memorandum of Understanding (MoU) with a South Korean conglomerate on a project to plant and restore mangroves to reduce carbon emissions.
AMERICAS
Canada exempts heating oil from carbon levy, doubles rebate for rural residents
Canadian Prime Minister Justin Trudeau announced Thursday a temporary pause on carbon levies for home heating oil and a doubling of the revenue-neutral fee rebate for rural residents, in a move seen to bolster support for the federal Liberal government among residents of the Atlantic provinces.
US govt announces $36 mln for development of marine CO2 removal methods
The US Department of Energy (DOE) announced Thursday the allocation of $36 million for 11 marine CO2 removal (mCDR) projects across the country, as the agency expands its support for advancement of the nascent technology.
INTERNATIONAL
Use Article 6 to fund trillions of dollars in grid investment, conference hears
The cost of capital has risen making borrowing tough for developing countries, but a Harvard economist believes he has found a way to solve the issue by leveraging Article 6 in a novel way to build large-scale transmission infrastructure.
BIODIVERSITY (FREE TO READ)
Japan certifies over 100 OECMs in bid to drive private sector biodiversity action
Japan’s environment ministry this week concluded the certification of 122 sites across the country as Other Effective area-based Conservation Measures (OECMs), its core policy to incentivise businesses to contribute towards the country meeting its 30 by 30 biodiversity protection targets.
Public-private partnerships can ensure finance flows to global biodiversity targets, says consultancy boss
An Italian environmental consultancy told Carbon Pulse that its public-private model can enable private sector finance to flow into improving biodiversity outcomes while ensuring cohesion with targets agreed under the Global Biodiversity Framework.
Landbanking launches nature equity platform with $11 mln
Landbanking Group has launched a platform for buying improvements in nature over areas of land, with $11 million in financing from investors.
Biodiversity Pulse: Thursday October 26, 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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CONFERENCES
Aviation Carbon 2023 – Nov. 6-7, London Heathrow: Join us for a unique networking forum for aviation sustainability experts and professionals. Now in its 11th edition, Aviation Carbon attracts over 300 delegates from 70 countries, with over 100 airlines and aircraft operators represented. Over 60 speakers will be hosting interactive panel discussions and workshops, to discuss key issues such as SAF, sustainability-linked finance, ESG, carbon removal technology, and the non-CO2 impacts of aviation on the climate. Don’t miss this opportunity to be part of a global conversation about the future of sustainable aviation – register here: https://www.aviationcarbon.aero/
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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
Pan-Pacific pals – California Gov. Gavin Newsom sat down with Chinese President Xi Jinping on Wednesday to discuss collaboration on addressing climate change amid fragile relations between the United States and China. The Wednesday meeting was a part of Newsom’s week-long trip to China where he has had a series of conversations with officials about how to partner on climate crisis mitigation. Newsom is the first governor in four years to visit China and the first California governor to meet with Xi since 2017. Despite rising tensions between the US and China, Newsom received a friendly welcome from Chinese leaders. He emphasised that California still wants to work with China on climate strategy even with strains taking place at the national level. (CNBC)
EMEA
Disappointing response – The British government has said it will not publish details on the CO2 impact of its recent net zero policy rollbacks, in a response to an environmental audit committee report, relating to announcements around changes to net zero policy made by Prime Minister Rishi Sunak in September. “It is not appropriate, nor is it a requirement, to … publish a revised version of Carbon Budget Delivery Plan every time there is a change in economic data, a policy, or wider factor,” Energy and Environment Minister Claire Coutinho said. The parliamentary scrutiny committee said that the response was disappointing in that many of the committee’s specific questions outlined in the report were left unanswered. A detailed response showing the impact on future emissions would have assisted scrutiny, it added. The government also responded to a June report from its independent advisors, the CCC, which had found its climate ambition to be significantly lacking. On Thursday, the government underlined that it is acting on 85% of the CCC’s priority recommendations and is acting on the majority of the remaining 273 recommendations, though some observers noted a lack of substance in its rebuttal of criticism.
Race for green – The EU still lacks an ambitious industrial strategy to accompany the Green Deal to strengthen the bloc’s industry and ensure it is able to keep up in the global race for green technological development, according to a policy paper from the Federation of German Industries (BDI). Green Deal policy-making until now illustrates that industrial competitiveness has clearly been shortchanged in the implementation of the Green Deal so far, the lobby group wrote in a paper outlining its priorities for the European Parliament’s next legislative period. It is now crucial to support industrial transformation, to promote the market ramp-up of net zero technologies, and to systematically accelerate licensing procedures, the body added. Between 2024 and 2029, the EU should ensure internationally competitive electricity prices and rapidly expand supply on the electricity market to secure the competitiveness of its industry. Additionally, policymakers should also dismantle national barriers to expand energy and transport infrastructure in the bloc, as well as increase support for investment in the green transition, the BDI outlined. (Clean Energy Wire)
Hydrogen gap – Germany’s growing demand for green hydrogen and Scotland’s ability to produce it thanks to large offshore wind resources could be the perfect match, recognised by the Scottish government with its £200,000 award to the Net Zero Technology Centre (NZTC) to advance research into the feasibility of exporting hydrogen from Scotland to Germany. The research will analyse and integrate work already undertaken at the NZTC as well as several notable European projects underway. The announcement follows news earlier this year that plans are underway for a £2.7 bln pipeline network connecting hydrogen hubs in Scotland to Germany. (Energy Voice)
AMERICAS
Sceptic Speaker – Newly elected US House Speaker Mike Johnson (R) will be perhaps the most vocal sceptic of the scientific consensus on climate change ever to hold the speakership, reports The Hill. Johnson received a 100% rating from the pro-fossil fuel American Energy Alliance in 2022, and individuals and PACs associated with the oil and gas industry have donated $23,800 to his 2023-24 campaign cycle, the largest amount he received from any group other than retired donors.
Say no to carbon – US Senator Bill Cassidy (R), member of the Senate Energy and Natural Resources and Finance Committees, led 14 Republican senators in opposing a carbon tax Thursday, citing it as “regressive”. The draft resolution argues that a carbon tax will discourage manufacturing and energy production in the US, lead to flight of jobs and businesses overseas, result in less economic growth, restrict the US’ global competitiveness, and primarily harm working-class families.
Army energy security – US President Joe Biden’s administration has signed a memorandum of understanding with energy provider Southern Company to develop carbon emissions-free electricity to federal facilities in Southern’s Alabama, Florida, Georgia, and Mississippi utility areas, of which the US Army is Southern’s largest federal customer. Southern has set a goal of net zero carbon dioxide emissions by 2050, and the Biden administration has established a path to achieve 100% carbon-free electricity for federal facilities by 2030. (S&P Global)
Energy reconciliation – The government of British Columbia has signed an agreement with the McLeod Lake Indian Band, located in northern BC, to lead $7 bln of clean energy projects, creating as many as 2000 construction jobs and 500 permanent jobs. The pact sets up a framework to create low carbon energy in what would be known as the Tse’khene energy transition hub. The first proposed project is a hydrogen production facility, while the second is a straddle plant which skims high-value liquids from natural gas pipelines that would have otherwise been burned as by-products. Premier David Eby said the latter project would help BC and its Indigenous partners extract “every bit of value” from natural gas exports. (CBC)
ASIA PACIFIC
Home grown – Fortescue Metals says it has produced the first of its “home grown” hydrogen electrolysers at its recently completed factory in Gladstone, Renew Economy reports. Mark Hutchinson, CEO of the Fortescue Energy division, told the company’s quarterly results that the 1 MW PEM electrolysers are currently being produced at the facility, which will have a capacity of 2 GW a year, and an automated production line will begin next month. Fortescue said it would use the electrolyser production as part of its bidding in the Australian government’s A$2 bln Hydrogen Headstart programme.
VOLUNTARY
StoneX cold – Demand has all but evaporated for credits generated by the Kariba forestry project in Zimbabwe, one of the world’s largest, said Alfredo Nicastro, head of carbon markets at StoneX Group, as reported by Bloomberg. “I haven’t seen any volumes or trading” for Kariba credits since a new round of criticisms surfaced last week, Nicastro said. It might never recover from allegations that it overestimated its climate impact, he added, creating a very damning situation for Kariba and South Pole, which helped develop the project.
INVESTMENT
Risky business – Bloomberg and Riskthinking.AI have launched the first physical risk indicators that consider every climate scenario approved by the IPCC. These indicators integrate Bloomberg’s extensive data on physical assets with Riskthinking.AI’s detailed global climate change projections. The company aims to help investors and companies evaluate their exposure to climate-related risks like floods, wildfires, and droughts, which are increasingly important due to evolving regulatory requirements such as the Corporate Sustainability Reporting Directive (CSRD) in Europe and other global standards. Riskthinking.AI uses Bloomberg’s data on nearly 50,000 companies, covering over a million various sites, to calculate a company’s physical risk exposure. The indicators allow for detailed analysis down to individual asset locations, and can be used in conjunction with Bloomberg’s global supply chain data to assess the physical vulnerabilities of key suppliers. Riskthinking.AI uses a stochastic approach, accounting for a broad range of possible future climate conditions, including extreme events often overlooked by other models. The indicators are designed to score companies on a scale of 0 to 100 in terms of physical risk exposure, offering projections up to the year 2050.
Islamic offering – A suite of Shariah-compliant carbon credit investment products is set to launch this week by XTCC, a blockchain-enabled exchange-traded carbon credit investment provider. XTCC currently has around $200 mln worth of high-quality credits ring-fenced for its investment proposition and is set to roll out a series of offerings over the coming months. XTCC’s open-ended fund and three-year fund to launch this week will comprise of 100% carbon credits. The launch of the products will be on the Bermuda Stock Exchange and Deutsche Borse.
AND FINALLY…
Crab crisis – Billions of snow crabs have gone missing from Alaskan waters in recent years – an ominous trend that scientists are now linking to ocean heat waves. Research published last week in the journal Science looks into the estimated 10 bln snow crabs that disappeared from the waters of the Bering Sea between Alaska and Siberia from 2019 to 2021, a population crash from a record high in 2018. The study finds that the crabs may have starved to death, as their caloric needs quadrupled as the ocean got warmer and they weren’t able to find enough food. The research comes just a week after the state of Alaska cancelled the snow crab harvest for the second year in a row, citing the low numbers. “The big take home for me from the paper, and just the whole experience in general, is that historically, fishery scientists had been very worried about overfishing – this has been our white whale, and in a lot of places we really solved that with management,” lead author Cody Szuwalski, a fishery biologist at NOAA, told CNN. “But climate change is really throwing a wrench into our plans, our models and our management systems.” (Climate Nexus)
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