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TOP STORY

Pennsylvania court declares RGGI an illegal tax, voids regulations

A Pennsylvania court on Wednesday halted the state’s plans to join the Regional Greenhouse Gas Initiative (RGGI), ruling that it constitutes an illegal tax in that the state does not have the authority to collect revenue through the cap-and-trade scheme.

AMERICAS

RGGI emissions decline at slower pace in Q3

The US Northeast and Mid-Atlantic RGGI power sector cap-and-trade system saw overall CO2 emissions decline in Q3 compared to the same quarter last year, programme data published Wednesday showed.

ICE announces amendments to California carbon contracts, additional US listings

Data and market infrastructure provider Intercontinental Exchange (ICE) is making amendments to the California Carbon Allowance Advance Auction Clearing Price (ACA) futures contract and also adding new vintage futures and options contracts effective December, the bourse announced Wednesday.

California carbon market observers recommend 55% emissions reduction by 2030, cost containment measures

A small representative set of California residents called for the cap-and-trade allowance budget adjustment to achieve at least 55% emission reductions by 2030, alongside recommendations for cost containment measures echoed by stakeholders, according to public comments submitted to state regulator ARB.

US BECCS facility partners with removals standard to generate CDR credits

A US bioethanol plant operator will bring its CO2 removal credits to the voluntary carbon market using a removal standards and marketplace’s methodology, it announced Wednesday.

Brazil risks missing 2050 net zero emissions goal without supercharging NBS efforts, researchers warn

Brazil’s path to achieving net zero emissions by 2050 could be jeopardised unless the country significantly ramps up its nature-based solutions (NBS), particularly ending deforestation and restoring native vegetation, a new study warns.

Canadian banking group agrees to buy 27.5k DAC removal credits from 1PointFive

A Canadian banking group has agreed to purchase 27,500 tonnes of CO2 removal credits from Occidental-owned 1PointFive’s first direct air capture DAC plant being built in Texas.

Alberta TIER market credit prices continue to increase in October

Spot credit prices under the Alberta Technology Innovation and Emission Reduction (TIER) programme climbed in October on significant volume as vintage value differentials continue to rise, according to a report published Wednesday.

EV charging developer announces carbon credit programme in Canadian province

A Canadian EV charging solutions provider launched a new initiative to allocate carbon credits for its EV charging station use, the company announced Wednesday.

ASIA PACIFIC

Australia to re-focus its national think-tank on the energy transformation, as part of broader climate agenda

Australia will task its national think-tank to focus on achieving the country’s energy transition and climate goals, as the government looks to “complement, not copy” the US’s Inflation Reduction Act to incentivise clean energy and tech investment.

Pakistan launches Article 6 readiness programme, sets the stage for carbon trading  

Pakistan along with international partners has launched the Supporting Preparedness for Article 6 Cooperation (SPAR6C) programme to help build the country’s carbon market and facilitate access to international carbon finance.

‘Captive’ coal to remain under Indonesia’s latest JETP plans

Indonesia has left the retirement of its captive coal-fired power stations off its energy transition plans and said Wednesday it would need more time to develop a strategy to shut them down and replace them with clean sources under its $20 billion Just Energy Transition Partnership (JETP).

GHG emissions not directly addressed or regulated in Australia’s environment law reforms, experts say

Australia’s greenhouse gas emissions are currently not explicitly regulated in any direct way, according to a legal opinion released Tuesday backed by environmental law experts, as conservation groups express concern over government reforms attempting to tackle the issue.

Shanghai auctions off 1 mln CO2 permits under local ETS amid hefty demand

The Shanghai government sold 1 million carbon allowances under its emissions trading scheme at this week’s auction, with the auction clearing a shade above current secondary market levels but well above the sale’s price floor amid robust demand.

Major Japanese trading firm secures mangrove-based credits from Indonesia

A major trading company in Japan has teamed up with a Singapore-based project developer to secure carbon credits from mangrove plantations in Indonesia, as part of a broader plan to expand its global carbon portfolio.

EMEA

European Commission sets 2024 EU ETS emissions cap for aviation

The European Commission has set the 2024 emissions cap for aviation under the EU ETS.

EU confirms two African ports identified as carbon leakage hotspots for shipping

The EU has confirmed that two North African ports will be excluded from calculating emissions obligations for ships under the bloc’s ETS, part of detailed rules adopted this week for including maritime in the bloc’s carbon market from next year.

Euro Markets: EUAs wipe out early gains as speculators bolster growing short positions

European carbon prices endured a day of two halves on Wednesday, rallying to a key technical and psychological level early on after exchange data showed investment funds continued to amass short positions last week, before short-positioned funds wrested back the initiative and sold the market to near its recent five-month lows.

INTERNATIONAL

Carbon pricing alone insufficient to meet Paris targets, academics caution

Carbon prices worldwide are not adequate to tackle climate change and need to rise swiftly and be integrated into a multi-faceted strategy in order make a significant impact in curbing emissions, a new study warns.

Study unveils new theory to help better predict global forest carbon uptake

A new study has shed new light on the intricate relationships between tree growth, mortality, and reproduction in global forests and how these factors interact to affect carbon absorption.

Campaign launches fresh drive to persuade big emitters to adopt science-based targets

FedEx, General Electric, and Rio Tinto are among companies targeted by a campaign launched Wednesday that aims to push the highest corporate emitters of greenhouse gases to adopt science-based targets in line with the Paris Agreement.

VOLUNTARY

Climate tech startups raise record $7.6 bln in Q3, showing no signs of slowing down

Startups specialising in climate tech raised a record $7.6 billion in venture capital (VC) funding in the third quarter of 2023, in a show of robust health for the US sector amid signs elsewhere of an overall slowdown in VC fundraising.

CIX’s nature carbon credit benchmark passes first external review, work continues in developing other contracts

Singapore-based Climate Impact X has taken a step towards providing benchmarked indices for the voluntary carbon market by passing the first external audit of its Nature-X assessment, paving the way for the creation of a swaps market as it confirms adding another REDD project and consults on launching other contracts.

Australia’s Climate Active scheme freezes applications using Kariba REDD credits

The Australian government’s voluntary climate certification scheme has frozen applications from businesses wanting to use credits from the controversial Kariba REDD project to offset their emissions, according to media reports.

Ocean carbon removal scales up as developer teams up with European oil major

A major European oil and gas company is teaming up with a Californian ocean carbon removal startup to launch a larger-scale pilot plant for the emerging field of direct ocean capture (DOC) of CO2, with an eye to building commercial plants in key regions globally as the technology advances.

Verra seeks public feedback on expanding offset methodology to include wood waste

Verra has opened a public consultation on a proposed minor revision to one of its methodologies to broaden its scope to include wood waste.

Crypto exchange Coinbase to delist Moss carbon credit altcoin over compliance concerns

Major cryptocurrency exchange Coinbase will delist the Moss Carbon Credit (MCO2) altcoin on Nov. 14 due to asset-related and compliance concerns.

BIODIVERSITY (FREE TO READ)

Wallacea Trust adds peer review to methodology for biodiversity credits

UK-headquartered non-profit Wallacea Trust has updated its methodology for measuring uplift in biodiversity credits with the inclusion of a peer review process to verify claims.

UAE royal-owned firm signs partnership with Brazilian environmental assets startup

A company linked to the royal family in Dubai has entered into a strategic partnership to promote a Brazilian startup that issues environmental tokens to landowners encompassing soil, water, biodiversity, and carbon.

Restoring nature in Europe would bring more than 10x in business returns, say researchers

Sustainable finance researchers have estimated huge financial returns for businesses across Europe if they align with the upcoming Nature Restoration Law and called for them to take action to capitalise on opportunities.

Non-profits launch platform to guide financials on deforestation-free company portfolios

A group of not-for-profits on Wednesday launched a free platform that gives financials access to comparable data on deforestation in the portfolios of more than 2,000 major companies worldwide.

Legal opinion finds Australian company directors exposed to nature-related risk

A landmark Australian legal opinion released Thursday has found that company directors who fail to adequately consider, disclose, and manage nature-related risks could be held personally liable.

High appetite but fundamental gaps in UK’s nature market structure, says industry coalition

The UK will have a smorgasbord of emerging nature markets in forthcoming years, but concerns persist around the underlying integrity and market infrastructure, according to an industry coalition.

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CONFERENCES

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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

Overshoot – Developed countries will overshoot their carbon emission targets and will collectively emit around 3.7 giga tonnes extra CO2 in 2030, which represents a 38% emission overshoot, with the US, the EU, and Russia responsible for 83% of this, according to research published by New Delhi-based Council on Energy, Environment and Water (CEEW) last week. Norway and Belarus are the only two developed countries on track to achieve their NDCs, the report says. Even if all developed countries were to reach net zero by 2050, they would require more than four times the average annual reductions they achieved from 1990 to 2020, it added.

Papua’s programme – The EU has committed €54.7 mln to its Forestry, Climate Change, and Biodiversity (FCCB) programme in Papua New Guinea (PNG), designed to help the country adapt to and mitigate climate change impacts, as well as transitioning it to a carbon neutral economy. It is the latest top-up to the programme, after the bloc committed €33 mln to it in July this year. A post on the platform X, by the EU delegation to PNG, said the cash would go towards combatting climate change and protecting PNG’s rich forests and biodiversity. EU-FCCB will create green jobs, support carbon credits, and promote sustainable growth, it added.

ASIA PACIFIC

We assumed – Australian companies that bought carbon credits from South Pole’s controversial Kariba REDD+ credits have told the ABC they assumed the credits were legitimate because large multinationals were also purchasing them. Origin Energy, KPMG, and Zoos Victoria are among the entities that bought credits from the Kariba REDD+ Forest Project, which is being investigated by Verra. Australia’s official carbon assessor, Climate Active, has frozen applications from businesses wanting to use Kariba credits to offset their emissions. Salary packing operation Simplygreen said it had only bought a small number of credits in 2022 before the allegations surfaced, adding that they assumed they were reputable because so many large organisations across the world were using them.

We’ve got money – Spatial Pleasure, a Japanese startup that develops software to certify and measure carbon credits for transportation operators, has raised around 120 mln yen ($0.79 mln), it announced this week. The money will be used to expand the company’s overseas businesses with a focus on Asia as well as obtain carbon credit certification in both domestic and overseas carbon markets, Spatial Pleasure said.

Getting ready – Taiwan has released a policy draft for the establishment of a special committee, paving the foundation for the island’s upcoming carbon levy scheme, according to a document released by the country’s environment ministry on Tuesday. The ministry has said the exact rates will be determined next year by the committee, which will review the levy based on multiple factors, including the current status of domestic GHG reduction activities, types of emissions sources, economic impact, and international trends. With the government still in the process of finalising carbon-related sub-laws, the slower-than-expected progress has raised concerns among scholars and green groups.

Hydrogen alliance – A consortium of nearly 300 Japanese companies including Toyota Motor and Sumitomo Mitsui Financial Group (SMFG) will set up a fund to help develop the domestic hydrogen industry, according to Nikkei. The Japan Hydrogen Association seeks to have the fund in operation by 2024 to support infrastructure upgrades such as hydrogen production and storage facilities, the report said.

Deeper ties – South Korea’s SK Innovation has teamed up with Japanese oil giant Eneos to consider collaboration towards energy supply stabilisation and energy decarbonisation, it announced Wednesday. The objectives of the partnership include the commercialisation of technologies that contribute to low-carbon energy such as sustainable aviation fuel (SAF) and carbon capture, according to the statement. The two companies have established a joint venture for lubricant base oil production and paraxylene production, based on a strategic business alliance mutually agreed in 2007.

Foot on the gas – A research report released by Singapore-based social enterprise Asia Research & Engagement (ARE) last week unveiled the comprehensive carbon impact of liquified natural gas (LNG) and uncovers critical discrepancies between LNG’s perceived environmental benefits and the actual impact. The report says that the severity of LNG’s environmental impact potentially exceeds that of coal. Despite LNG’s lower carbon intensity at power plants, upstream emissions during production, storage, and transportation exacerbate its overall carbon footprint. The report added that the recent geopolitical events have led to a surge in LNG investment and contradict the International Energy Agency’s call for a peak in LNG usage by 2025, which is a crucial milestone in achieving net zero emissions by 2050. It further said that increasing LNG reliance in nations such as Vietnam and Philippines will have both financial and environmental risks, which may impact such nations’ ability to meet their emission targets.

AMERICAS

Subpoena surprise – The House Judiciary Committee has issued a subpoena to As You Sow, a leading shareholder advocacy group focused on climate risk, demanding documents related to its work with companies on reducing emissions. The Committee has questioned whether As You Sow’s activities might be violating US antitrust laws, arguing that their agreements to ‘decarbonise’ corporate assets could potentially harm American economic well-being and freedom. Similar letters have also been sent to other shareholder services such as Institutional Shareholder Services (ISS), Glass Lewis, and Trillium Asset Management. Danielle Fugere, president of As You Sow, criticised the subpoena as being flawed and too broad, stating that their work actually fosters competition and innovation in low-cost energy. Andrew Behar, CEO of As You Sow, emphasised that their work aims to mitigate climate-related impacts that are damaging to the US economy and well-being. The organisation said it remains committed to its climate advocacy and is not deterred by the subpoena.

Canada’s carbon levy crosshairs – Canada’s Conservative Members of Parliament will force a vote on a motion that calls on the Liberal government to freeze the federal carbon levy on all forms of home heating until the next election, and then ask Canadians at the polls to decide if they want the price reapplied. The measures follow swift pushback from the Premiers of Alberta, Saskatchewan, and British Columbia in response to Prime Minister Justin Trudeau’s exemption for home heating oil from the carbon fee – targeted towards Atlantic Canada – announced last week. Saskatchewan’s Premier Scott Moe announced that the province’s gas utility, SaskEnergy, would not remit the carbon fee on natural gas beginning in the new year, unless Ottawa exempts the fuel. However, if SaskEnergy doesn’t remit the charges, it could face severe fines and imprisonment of its executives, say legal experts. (National Post, Global News)

Suriname settlers- Environmental organisations in the Suriname are expressing concerns that the government’s approval of large scale agriculture by Mennonite immigrants will result in deforestation, Loop News reported Tuesday. Where the Mennonite people are going to live and farm remains unknown, as does how much land has already been sold, according to the green groups. Concerns are also being raised by Indigenous peoples about land they claim title to being sold to Mennonites. Suriname, a South American country with a Caribbean culture, is one of three carbon negative countries, along with Panama and Bhutan.

Steel supply – Auto maker Porsche has signed a deal with H2 Green Steel to supply them with low carbon steel, produced with renewable energy in Sweden, Green Car Congress reported Wednesday. The operations will begin in 2025 and deliveries are scheduled to commence in 2026, which the company says will have 95% fewer CO2 emissions than conventional steel which is made from corking coal. H2 Green Steel plans on supplying Porsche with 35,000 tonnes of steel every year, which would work out to about 16% of the company’s annual steel usage.

Sunny Mexico offsets – Clean energy companies Solfium and MEXICO2 Plataforma Mexicana de Carbono have joined forces to enhance the adoption of solar energy in the Mexican carbon market, Mexico Business News reported Wednesday. This alliance aims to formalise their commitment to developing a voluntary carbon market in Mexico by harnessing Solfium’s solar projects and expanding the options available for companies to reduce their carbon tax.

EMEA

Climate craze – The former Earls Court exhibition site in central London is gearing up to receive £6 bln of investment into workspace and lab-enabled offices centred around the climate tech sector, with the first set of developments due to be ready for use by 2028. It is hoped that the 2.5 mln square feet of workspace will provide an official home for the fast-growing climate tech sector in the UK, which is estimated to be worth around $100 bln (£82 bln) in Europe. There is also an aspiration for the entire development to incorporate the first large-scale zero carbon energy sharing network in the UK, enabling local people to benefit from cost-effective heat networks. The first phase of development will start from 2025. (Cityam)

Pipe dreams – Germany’s finance minister Christian Lindner has rejected a coal phase-out by 2030 if the country is unable to provide affordable energy, a domestic newspaper reported. Now is not the time to shut down power plants given the high costs of energy due to energy scarcity and Germany should instead move to accelerate renewable energy adoption and intensify domestic gas production, he said. Lindner also spoke out against an industry power price to help cushion the country’s industry against comparatively high power prices, as proposed by the economy minister. The 2030 phase-out date for coal “does nothing for the climate anyway as, due to European rules, the CO2 emissions saved in Germany are allowed to accrue additionally in Poland, for example,” he said. (Clean Energy Wire)

SHIPPING

Green claims – End users of shipping may soon be able to receive granular data around green claims thanks to a new Memorandum of Understanding (MoU) signed between Global Shipping Business Network (GSBN) and DNV to enable verified data sharing for green claims in an effort to help the maritime sector provide accountability for decarbonisation investments. Trustworthy data for customers is increasingly important in the shipping sector as it undergoes major changes, such as inclusion in the EU ETS. The MoU will see both companies work together to conduct pilots with existing shipping line members in order to issue reliable green claims to end users backed up by granular data.

SCIENCE & TECH

Concrete deal – US industrial technology firm CarbonCure Technologies and direct air capture (DAC) company Heirloom have signed an agreement through 2025 to store CO2 captured by Heirloom’s DAC technology in concrete using CarbonCure’s carbon mineralization methods, the companies announced in a press release on Wednesday. The two companies are also working together following notification of selection by the US Department of Energy for a DAC Hub project in Illinois. CarbonCure has produced more than 5 million truckloads of carbon mineralized concrete to date, removing and reducing more than 365,000 MtCO2.

AND FINALLY…

Nothing negative about pizza – Franco Manca, an Italian restaurant chain in the UK, has entered into a partnership with Wildfarmed to use its regeneratively-farmed, carbon-negative flour in sourdough pizzas. All 69 Franco Manca outlets across the UK will use this environmentally-friendly flour, which is produced without the use of pesticides, herbicides, or fungicides. The move aligns with Franco Manca’s commitment to offer “honest, quality food” to its customers. The partnership will involve more than 1,000 tonnes of the regeneratively produced flour, helping to increase wildlife, sequester carbon, and reduce harmful chemicals in rivers and streams. This is another in a series of partnerships for Wildfarmed, which has already collaborated with other major food and drinks suppliers, including Zizzi, ASK Italian, Wahaca, and M&S. According to third-party lifecycle analysis, Wildfarmed’s flour is carbon negative and offers higher nutritional content. (BusinessGreen)

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