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TOP STORIES
How Virginia’s legislative election could affect its RGGI membership
Tuesday’s election to determine who occupies the 40 Senate and 100 House of Delegates seats in the Virginia General Assembly is too close to call, and could impact the ongoing battle to bring the state out of the RGGI trading bloc.
PREVIEW: Modest expectations for second Washington reserve permit sale, prices hover above Tier 1 trigger
Market participants expect robust demand for Washington’s upcoming Allowance Price Containment Reserve (APCR) sale on Wednesday, with Washington Carbon Allowances (WCA) offered on the secondary remaining above the scheme’s Tier 1 trigger price.
INTERNATIONAL
ANALYSIS: Experts warn of Article 6 “backlash” if nations fail to build capacity
Countries must immediately start building capacity for Article 6 readiness, carbon market participants have warned, citing a general lack of understanding among governments about the Paris Agreement’s international emissions trading rules, the risks of overselling mitigation outcomes, and the dangers of allowing nations to revoke the authorisation of carbon transfers across borders.
AVIATION
FEATURE: Aviation carbon offset scheme faces fundamental imbalance with demand seen far outstripping supply
Stakeholders are concerned that prices of eligible credits for the UN’s aviation carbon offsetting scheme will spiral once the mechanism enters its mandatory phase later this decade, with the supply outlook unclear as doubts over eligibility and accounting procedures pile risk onto project developers and investors.
VOLUNTARY
CBL removes suspended Kariba, Kasigau REDD projects from N-GEO eligibility
Xpansiv CBL has removed the Kariba and Kasigau REDD projects from its list of pre-screened projects, the carbon credit marketplace said in a note early on Tuesday, meaning that credits from these projects are no longer deliverable under its N-GEO nature-based standardised spot contract.
N-GEO carbon credit prices bounce back after projects excluded, REDD market remains under pressure
Prices for Xpansiv CBL’s standardised nature-based carbon contract, the N-GEO, ticked up on Tuesday after the marketplace removed the Kariba and Kasigau REDD projects from its list of pre-screened projects.
BlackRock invests $550 mln in world’s largest DAC plant, forms JV with owner Occidental
BlackRock and US-based energy firm Occidental have teamed up to develop the world’s largest direct air capture (DAC) facility, with the global investment giant channelling $550 million of client funds into the project.
European agtech firm expands soil carbon removal projects across Africa
A European agtech firm has expanded its network of soil carbon removals projects further afield to now include projects across Africa, it said on Tuesday, aiming to have 200,000 hectares of African territory under its programme by the end of the year.
Carbonplace carbon credit transaction network unveils a series of partnerships
Carbonplace, a carbon credit transaction network developed by several global banks, said Tuesday it has signed a series of partnerships, among them a collaboration with carbon credit rating agency BeZero, whose ratings will be hosted on the fintech’s platform.
US non-profit proposes code of conduct for marine CO2 removal research
A US-headquartered non-profit has proposed a comprehensive code of conduct to guide the burgeoning field of marine CO2 removal (mCDR) research, in an effort to minimise damage to ecosystems, communities, and the industry’s reputation that could be caused by the sector’s hurried development.
EMEA
EU banks and companies still involved in over 100 ‘carbon bomb’ fossil fuel projects -NGOs
EU-based banks and companies – such as TotalEnergies, Shell, RWE, and Eni – are involved in more than 100 of the world’s biggest ‘carbon bomb’ fossil fuel extraction projects that could tip the world into unstoppable warming, NGOs said in a report on Tuesday that urged legislators to avert this by setting binding climate goals for companies in ongoing EU legislation.
Euro Markets: EUAs set new one-year low as selling continues unabated ahead of position data
European carbon prices gave up a morning rally on Tuesday and fell to their lowest level in more than a year as renewed selling erased the effects of early technical buying, while traders focused on Wednesday’s weekly Commitment of Traders report amid expectations the recent price decline will have encouraged a further build in speculative short positions.
EU lawmakers seek to push member states on COP28 stance
Members of the European Parliament’s environment committee resoundingly agreed climate action should be accelerated in all sectors to meet the Paris Agreement goals and called for and end to fossil fuel subsidies by latest 2025, in a vote on their demands for the COP28 UN climate conference on Tuesday.
New market-makers help EEX monthly EU carbon trading volumes almost double
EEX’s European carbon trading volumes nearly doubled in October compared to a year ago after the exchange implemented a new market-maker programme that it said has had a positive impact.
ASIA PACIFIC
China releases methane reduction plan though targets remain vague
Chinese regulators have released an action plan for the country to better tackle methane emissions, outlining several policy tasks including the utilisation of the domestic voluntary carbon market, despite a lack of substantial targets.
Japan’s biggest business group wants major JCM expansion, overhaul
The biggest business group in Japan has demanded the government makes major changes to the Joint Crediting Mechanism (JCM), including involving more partner countries and project types, increasing project co-funding, and making it easier and more attractive for private companies to participate.
Australia moves to tackle agriculture carbon emissions
Australia on Tuesday released a discussion paper on how to reduce carbon emissions from agriculture and land use, the first of six sectors for which it intends to draw up detailed strategies to put its overall GHG output in line with its Paris commitments.
Woodside CCS in early stages as company continues wait-and see approach to energy transition
Australia’s Woodside Energy has made incremental progress on its CCS ambitions, but its investor briefing day held Wednesday offered little new in terms increased progress or ambition on its climate and decarbonisation goals.
AMERICAS
US Forest Service proposes rulemaking for CCS on federal lands
The US Department of Agriculture (USDA) Forest Service has announced plans to commence rulemaking that would allow the agency to consider applications for carbon capture and sequestration (CCS) projects on national forests and grasslands.
NGOs, utilities welcome California’s potential cap-and-trade amendments, oil association pushes back
Representatives from climate groups and electricity utilities continued to provide feedback to California regulator ARB regarding changes to the state’s cap-and-trade regulations, while a petroleum association opposed increased programme stringency.
BIODIVERSITY (FREE TO READ)
UK’s flagship environment law not yet able to have impact on deforestation, says NGO study
The UK’s two-year-old “world-leading” environmental legislation has not affected deforestation rates due to a lack of follow-up action by the government, according to analysis conducted by NGOs and published on Tuesday.
EU’s nature restoration bill faces uncertain path amid parliamentary divisions, says senior lawmaker
The atmosphere in negotiations for the EU’s nature restoration law is not positive, with its future over the next few months uncertain, a member of the Greens–European Free Alliance (EFA) party involved in the talks has said.
Largest food companies reduce biodiversity risks, report finds
The world’s 60 largest food companies reduced their risks from biodiversity and deforestation by 6% over the last year, a report by investor network FAIRR has found.
Biodiversity Pulse: Tuesday November 7, 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
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- *Senior Manager, Accreditation Program Standards, Verra – Remote (Worldwide)
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- *Director, REDD+ Program Development and Innovation, Verra – Remote (Worldwide)
- *EMEA Policy Editor, Carbon Pulse – Brussels/London/Remote (in Europe)
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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
Promotion commotion – McKinsey & Company, a leading management consultancy, is accused of using its advisory role at the UN’s COP28 climate talks to promote the interests of its oil and gas clients, potentially undermining global efforts to phase out fossil fuels. An AFP investigation reveals that the company has offered energy scenarios for the summit that only moderately reduce oil use by 2050 and advocate for substantial new oil and gas investments, conflicting with international climate goals. McKinsey, which serves high-profile oil companies like ExxonMobil and Aramco, claims it is committed to sustainability and supporting COP28 with strategic insights. However, confidential documents and sources suggest that McKinsey’s advice might favour the fossil fuel industry over helping to achieve global climate targets. Criticisms include those levelled at the firm’s draft scenarios allowing for continued high levels of fossil fuel usage and necessitating immense investment in CO2 removal technologies. Despite these allegations, McKinsey defends its role in engaging with high-emissions sectors as essential to addressing the climate challenge. The controversy adds to the company’s history of lawsuits and critiques, raising questions about the influence of consultancies in climate policies and their balance between client interests and the urgent need for decarbonisation.
Displacement – Investments in clean energy are set to increasingly replace fossil gas and coal in the US and European power grids throughout the 2020s, according to research by Zero Carbon Analytics. This shift is backed by over $1.5 trillion committed by Brussels and Washington to boost the green economy, aiming to reach the 2050 net zero emission goals. The transition is already evident, the report said, with renewables surpassing both coal and nuclear power generation in these regions. Notably, wind and solar power in 2022 provided enough energy to supply around 85% of European Union households, contributing to a 15% reduction in consumer bills, as per the IEA. In the US, the growing output from wind and solar is expected to start reducing coal and gas power generation as early as 2023 and 2024. Wind capacity has doubled, and solar power tripled since 2017 according to the EIA. The findings are part of the “Energy Systems in Transition: EU and US” report, the second in a series that examines the rapid growth of clean energy transitions, supporting broader research suggesting that the shift to clean energy is occurring faster than anticipated.
All about shareholders – According to a new report by Carbon Tracker, oil and gas companies should plan for a decrease in production to maximise shareholder value, as the growing adoption of clean technologies and tightening climate policies worldwide are expected to reduce future demand for fossil fuels. Current high prices have prompted these companies to invest in new oil and gas fields, but there’s a risk these projects may not yield the expected returns as global demand for oil is projected to peak this decade and fall thereafter. The report suggests a strategy of managed investment focusing on short-cycle projects or allowing natural depletion, to minimise investor risk. With the energy transition gaining momentum due to technological advances and government policies, and investments in renewables surpassing those in fossil fuels, oil and gas companies are advised to consider the rapid pace at which this shift may occur. They face the challenge of responding appropriately to preserve shareholder value and considering new business models as demand peaks. Companies could adopt a “managed investment” strategy that approves short-cycle projects up to a break-even price of $50 a barrel while only endorsing conventional projects with break-evens of $20 a barrel or lower, thus avoiding market oversupply. The report warns that continued “business-as-usual” investment could lead to significant market oversupply and recommends that companies consider returning value to shareholders or diversifying their business rather than investing in new production. It also highlights that most oil and gas companies’ investments in renewables were only 1% of global renewables investment in 2022, questioning their preparedness to lead the energy transition. There’s a further risk of OPEC increasing production, which could lower prices to levels unsustainable for many companies, suggesting that a natural depletion model may be prudent.
EMEA
Fade the raid – Portuguese PM Antonio Costa has resigned after his residence was raided by police as part of a corruption probe involving his chief of staff, Vitor Escaria, and two other close associates, Politico reports. The investigation is related to lithium exploration and a green hydrogen project in Sines, with Costa’s government facing scrutiny over the environmental impact and the quality of lithium. The PM, in office since 2015 and re-elected in 2022 with his Socialist Party holding a majority, has experienced a series of scandals leading to other resignations within his government. Up to now, Portugal’s President had declined to call new elections due to the potential disruption amid the allocation of EU recovery funds.
Not so bonnie – Scottish National Party (SNP) ministers are poised to delay their crucial updated climate change plan – adding to fears that Scotland is off track in hitting its ambitious legal emissions reduction targets, the Herald reports. The Scottish government is due to publish its updated blueprint to reduce harmful emissions by the end of the month, but ministers are set to delay the publication of the plan into next year amid British PM Rishi Sunak rolling back a series of UK-wide net zero policies. “This is very disappointing if it’s confirmed. We agreed to push back the UK Climate Change Committee’s annual Scottish progress report to review the Scottish government’s new climate plan – due at the end of this year. Now it seems we’ll have nothing to review,” Committee Chief Executive Chris Stark posted on X.
More money needed – The European Environment Agency (EEA) has released an analysis indicating that, to meet sustainability targets like the European Green Deal and achieve climate neutrality by 2050, Europe must invest more in clean technology and green industry. This comes at a time when public budgets are strained by various factors, including security, inflation, and demographic changes. The EEA suggests that the EU’s new green industrial policy could drive public and private investments in sustainability, crucial for the transition. Given that the Green Deal requires annual investments of over €500 bln until 2030, mobilising private finance is critical. The proposed Net-Zero Industry Act is highlighted as a significant step towards establishing a green industrial policy, aiming to boost European manufacturing of net zero technologies and supporting Europe’s shift to a climate-neutral future.
Overlooked – Dutch MEP Esther De Lange felt overlooked in the selection for the EU climate commissioner role when Dutch PM Mark Rutte nominated Wopke Hoekstra, the then-foreign minister, instead of her, Euractiv reports. Armed with a background in environmental matters, De Lange had expressed her willingness to take the position to Rutte but was ultimately disregarded in what she perceived as an insular decision-making process. Hoekstra’s appointment was met with widespread criticism by MEPs and environmentalists, who questioned his climate credentials and past controversial remarks on the subject. Despite this, De Lange said she endorses Hoekstra for the role, highlighting his foreign minister experience as valuable for the upcoming COP28 summit. The appointment process also drew criticism from Laurens Dassen, leader of the Dutch Volt party, who argued it demonstrated the need for more democratic procedures within the EU.
Tusk snubbed – Polish President Adrzej Duda nominated outgoing prime minister Mateusz Morawiecki to try to form a new government following the Polish national elections in October, ignoring appeals by a coalition of three opposition parties led by Donald Tusk that hold a larger majority. The former ruling party conservative PiS is still the largest, but falls short of the required majority. Morawiecki has two weeks to present a cabinet, and then another two weeks to present his programme and hold a confidence vote. The elections were hailed as one of the most important elections in the country’s history since the fall of Communism, because of the ruling party PiS’ stance on the rule of law, EU, migration, Russia’s aggression in Ukraine, climate, and renewable roll-out, as reported previously on Carbon Pulse.
Green iron – The German government is supporting the establishment of Africa’s first green ironworks with a grant of €13 mln. A consortium consisting of three German companies – CO2Grab, TS Elino, and LSF – are overseeing the HyIron/Oshivela project in Windhoek, Nambia. The facility will produce green hydrogen that will reduce iron ore to iron in a ‘climate-neutral’ manner. The direct reduced iron, or sponge iron, that is produced can then be shipped to steelworks in Germany. (Clean Energy Wire)
ASIA PACIFIC
The small stuff – Shin Energy Development, a subsidiary of NED Digital, has teamed up with blockchain company Kingblue to develop a platform for tokenised J-Credits. They plan to offer a route to market for small-scale project developers earning fewer than 100 credits annually for their efforts by digitalising them and selling them on a blockchain-based platform. Individuals and small companies and organisations wanting to offset their carbon footprint would be the likely buyers, the partners said in a press release Tuesday.
(Net) zero compromise – India’s power minister R K Singh, while speaking at a national conference in New Delhi on Monday, said that the government will not compromise on power needed for growth, even if that meant an addition of coal-based capacity, hinting that the upcoming COP28 in Dubai will increase the pressure to reduce coal usage. He said that in order to meet the increasing power demand, all states in the country will have to run their power plants at full capacity. Despite this, the minister seemed determined to meet the targets set for the country at the COP. According to the press release, the Minister urged the states to set up new power plants near coal belts so that issues related to long-distance transportation of coal and availability of rakes do not arise. He also said that the country needs about 80 GW of thermal capacity under construction to meet the growing demand.
Feedback needed – The secretariat of Japan’s Joint Crediting Mechanism (JCM) is seeking comments on a 4.2 MW rooftop solar power project in Indonesia, it announced Tuesday. The project, with an expected operational lifetime of 17 years, became operational in January and could reduce around 3,800 tonnes of emissions every year. The call for public comments is open from Nov. 7 to Dec. 6, 2023, according to the announcement.
CCS for gas – Tenaga Nasional (TNB), the Malaysian electricity company, and oil major Petronas signed an MoU to explore CCS technology for gas-fired power plants to drive decarbonisation in Malaysia, the companies said in a press statement released Sunday. Natural gas will play an important role in Malaysia’s energy landscape as the country moves to a low-carbon economy, and gas-fired power plants will enable greater integration of intermittent renewable energy sources, the statement added.
AMERICAS
Prize research – Canada’s Scotiabank announced 10 winners of its 2023 Net Zero Research Fund (NZRF) that earmarks $10 mln over 10 years to organisations conducting research and leading initiatives in support of a transition to a low-carbon economy. The 2023 award recipients from Canada, the US, and Latin America will collectively receive $1 mln to develop research focused on carbon emissions measurement, capture, and reduction, Tuesday’s press release stated. The Memorial University located in Newfoundland and Labrador, University of Alberta, LiteFarm co-created by the University of British Columbia, The University of Sherbrooke, Quebec, a project to reduce emissions in Costa Rica’s coffee processing industry, the Blue Ocean Credits Program run by Mexican NGO Reef Acquaculture Conservancy, and a US based project to advance mineral carbonation of steel slag were some of the award recipients. The next call-for-submissions for the Net-Zero Research Fund (NZRF) will be held in the spring of 2024.
Not enough – Canada will not meet its 2030 emission reduction target of reducing GHG output by 40-45%, the nation’s auditor general said on Tuesday, Reuters reported. The audit by commissioner of the environment and sustainable development Jerry DeMarco found key measures needed to meet the 2030 target were delayed or not prioritised. Responsibility for reducing emissions was split among multiple federal entities not directly accountable to Environment Minister Steven Guilbeault, making progress and course correction difficult, the audit detailed. The federal government is expected in the next few weeks to unveil measures on zero-emissions vehicles, mandate a 70% cut in methane output from the oil and gas sector by 2030, and produce a framework for capping oil and gas emissions, the report noted. Thus far, Canada has missed every emissions reduction target it has ever set.
Getting silly now – Canada’s federal Conservative Party, led by Pierre Poilievre, is raising objections to the inclusion of a carbon tax reference in the renegotiated Canada-Ukraine free trade agreement, citing it as a point of contention. According to the Canadian Press, the updated agreement, which cannot be amended in the short term as it was already signed in September, is currently under review by the House of Commons trade committee. The Conservative Party’s resistance to carbon pricing is well-known, and they have challenged the timing of the renegotiation with Ukraine, given the ongoing war and Canada’s substantial financial support to Kyiv. The trade agreement, set to replace the 2016 deal, includes new chapters aimed at benefiting various sectors and promoting inclusive commerce. International Trade Minister Mary Ng has defended the agreement, expressing surprise at the Conservative critique, and has questioned their use of the term “woke” in the context of the deal. She argues that the agreement’s progressive elements, like environmental protections, are beneficial. The Liberals have accused the Conservatives of attempting to block support for Ukraine, with allegations from the deputy government house leader Mark Gerretsen suggesting that the Conservative opposition to the agreement is akin to the right-wing attitudes in the US towards Ukraine. In response, Conservative MPs have highlighted their unanimous support for Ukraine and questioned why the updated treaty lacks reference to energy security and LNG trade. Observers clarified that the mention of carbon pricing in the agreement does not mandate a carbon tax for Ukraine but serves as a principle for cooperation.
Farm fine tuning – The Agroforestry Coalition, a group of organisations, farmers, businesses, advocates, and researchers committed to growing the number of US farms and ranches that integrate trees and other perennial crops into their agricultural systems, released a set of policy recommendations Friday for lawmakers to consider in a potential new federal farm bill. The paper recommends the creation of a standard definition of “agroforestry” across federal programs, adjustment to the Conservation Reserve Program (CRP) to establish a new agroforestry initiative and expand support for all agroforestry practices across subprograms, and authorisation of at least three new regional agroforestry centres to complement the National Agroforestry Center (NAC), amongst a host of other measures. The coalition claims that agroforestry systems provide an array of conservation, economic, and social benefits, and hold “immense potential to transform US agriculture and forestry”.
End of an era – A lawsuit filed by three natural gas companies against Pennsylvania’s Regional Greenhouse Gas Initiative (RGGI) rulemaking saw their petition dismissed as moot Tuesday, following the Nov. 1 state Commonwealth Court ruling of RGGI as an illegal tax. Calpine Corporation, Tenaska Westmoreland Management, and Fairless Energy petitioned the Commonwealth Court last July and later saw a judge on the court bench favour the power generators’ arguments in Feb. 2023. This is the second lawsuit against Pennsylvania’s RGGI rulemaking to see a final disposition, as another lawsuit filed by the coal industry and fossil fuel labour unions also saw its case dismissed as moot Nov. 1.
NDP tries its luck – New Democratic Party (NDP) Leader Jagmeet Singh advanced a motion to remove the federal goods and services (GST) tax off all forms of home heating Tuesday, following Monday’s failed Conservative motion that called for an exemption of all forms of home heating from carbon pricing for three years. The non-binding NDP motion also aims to make energy efficiency retrofits for low and middle-income Canadians more accessible, financed by a tax on excess profits of fossil fuel corporations. While a number of the NDP caucus voted to support the Conservative motion on Monday, it is unlikely that the support will be reciprocated, as Conservative Leader Pierre Poilievre accused the NDP of performing “yet another flip-flop”, CTV News reports.
Farm carbon exemption – An amended version of Bill C-234 was rejected by a majority of senators in the Canadian House of Commons Tuesday, bringing the proposed on-farm carbon pricing exemption closer to becoming law. The bill was introduced by Conservative Member of Parliament (MP) Ben Lobb in Feb. 2022 and proposes to remove the federal carbon levy from natural gas and propane used on farms for activities such as drying grain and heating barns and greenhouses. Last month, an amendment proposed to remove farm buildings from the exemption, but saw strong pushback from farmers and farm groups, and it was ultimately defeated Tuesday. (Real Agriculture)
VOLUNTARY
1 million more – The Arbor Day Foundation and Forest Trends are intensifying their collaboration through the Arboredo Project to enhance the livelihoods of Indigenous Peoples and Local Communities (IPLCs) and plant a further 1 mln trees in Brazil’s Atlantic Rainforest. The initiative contributes to Brazil’s commitment to restore 12 mln hectares by 2030 in the rainforest, a key biodiversity area. Working with IPLCs, family farmers, cooperatives, and NGOs, the project will focus on native species to bolster economic prospects, food security, carbon storage, and biodiversity. Despite IPLCs being effective guardians of biodiversity and carbon stores, they face significant threats from land exploitation and have limited access to economic opportunities. This expanded partnership aims to scale up sustainable forest-based value chains and is part of a broader effort to amplify forest restoration work in Brazil and beyond. The Arbor Day Foundation said it has prioritised the Atlantic Rainforest due to its significant potential for positive climate, wildlife, and community impact.
Oiled up – Global transport and logistics company Kuehne+Nagel has introduced a ‘book & claim’ insetting solution for road logistics, allowing customers to offset their transport emissions by purchasing hydrotreated vegetable oil (HVO). This initiative, part of their ‘Roadmap 2026’ ESG strategy, aligns with their science-based targets to facilitate the reduction of emissions in the logistics sector. After collaborating with various stakeholders to ensure the scientific integrity of the programme, the company is initially offering this solution in Europe, with plans to extend it globally in 2024. Additionally, Kuehne+Nagel is developing an integration of EVs into this initiative, viewing HVO as a temporary measure with a transition to EVs anticipated by the end of 2023. (Logistics Manager)
AVIATION
World first – Virgin Atlantic will fly from London to New York on Nov. 28 using 100% sustainable aviation fuel (SAF), after Britain’s Civil Aviation Authority granted the airline a permit, thus setting a world first, Reuters reports. SAF uses waste such as cooking oil to reduce emissions by up to 70% compared to fossil fuels and is currently used to power jet engines as part of a blend with traditional kerosene.
SAF & sound – Southwest Airlines has entered into a 20-year agreement with USA BioEnergy to acquire up to 680 mln gallons of sustainable aviation fuel (SAF), which it said could avoid 30 Mt of CO2 emissions. The airline aims to start using SAF from USA BioEnergy’s Texas facility from 2028. This deal supports Southwest’s objective to substitute 10% of its jet fuel with SAF by 2030 and moves them closer to their 2050 target of net zero carbon emissions. Southwest is also considering purchasing additional SAF from USA BioEnergy’s future production sites, which underscores a long-term strategic partnership aligned with both companies’ environmental goals.
SCIENCE & TECH
Land needed – McKinsey & Company has released a report indicating that by 2030, an additional 70-80 mln hectares of cropland will be needed to meet global demand for food, feed, fuel, and natural capital. This area is equivalent to the entire cropland of Brazil or three times that of Tanzania. According to the report, the majority of this land will be used for livestock feedstock, which will account for approximately 70% of the new cropland, while crops for human consumption will take up 20%, and biofuel production will require around 10%. The report, “Striking the balance: catalyzing a sustainable land use transition,” states that this expansion in cropland represents less than a 10% increase from current levels. However, it raises concerns due to the intensifying competition for land, particularly in Latin America and Sub-Saharan Africa, where land and food prices could rise. McKinsey emphasised the urgency of altering land use practices to honour climate and nature commitments while supporting a growing population. To balance the additional land demand, strategies such as converting degraded land, improving crop yields, and increasing trade efficiency are highlighted. Nonetheless, it’s likely that further measures, including behavioural changes, reducing food waste, and exploring offshore alternatives, will be necessary for sustainable land use. With an estimated cost of $300 bln to convert 70-80 mln hectares of pastureland to cropland, substantial investments will be required, necessitating collaboration between public and private sectors. The consultancy warns of increased pressure on land supply due to potential adverse climate conditions and market shocks, which could affect land prices, farmers’ margins, and investment strategies. The report outlines 10 “acceleration actions” to help mitigate more than half of the projected land demand by 2030. These actions include adopting resilient agricultural practices, promoting crops that double as energy sources, and generating nature-based solution carbon credits through reforestation.
Winning ideas – The five winners of this year’s Earthshot Prize for innovation to tackle climate change and biodiversity loss were unveiled on Tuesday in Singapore by Britain’s Prince William, each taking a prize of £1 mln, The Guardian reports. Among them was Boomitra, a project involving 150,000 farmers in some of the poorest parts of Africa, South America, and Asia that aims to reduce emissions and boost profits by incentivising land restoration through a verified carbon credit marketplace. The other winners were GRST, WildAid Marine, S4S Technologies, and Accion Andina.
GAMI time – A team at the University of Glasgow has contributed to the first global assessment of peer-reviewed literature on climate change adaptation, highlighting a lack of systematic networking and coordinated action. The Global Adaptation Mapping Initiative (GAMI), which included 29 universities, found that the main burden of adaptation has been falling on individuals and households rather than being a coordinated effort across various societal levels.
AND FINALLY…
Carbon skidmarks – Presented without comment (you really need to watch it for yourselves).
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