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COP28

UN climate loss and damage fund approved in historic first-day progress

Delegates adopted a new climate loss and damage fund at the first day of the two-week COP28 UN climate negotiations on Monday, a move that immediately led several governments to announce contributions.

Canadian climate commitments at odds with its oil and gas industry -panel

Canadian environmental non-profits advocated for fossil fuel phase-out language in a panel Thursday at COP28 in Dubai as the federal environment ministry is soon expected to announce a cap on emissions from oil and gas.

Major EU utility launches UAE-based carbon markets subsidiary

A large European utility has formally launched a subsidiary based in the UAE as it aims to scale involvement in carbon markets, according to a release Thursday.

New European group to promote clean aviation fuel

A new coalition is seeking to speed the uptake of sustainable aviation fuel (SAF) arguing that high prices keep demand low but low demand keeps prices high as it prevents economies of scale developing.

NGOs urge nations to prevent carbon project “landgrabs”, citing UAE developer activity

An open letter signed by multiple environmental groups has urged signatories to the UN Paris Agreement to protect countries against what they describe as “landgrabs” from carbon project developers.

Oman updates NDC, signals willingness on Article 6

Oman updated its NDC for the second time on Thursday, substantially raising its business as usual (BAU)-based goal and signalling a willingness to develop emissions trading approaches under Article 6 of the Paris Agreement.

Roundup for Day 1 – Nov. 30

It’s Day 1 of COP28 and enough delegates to fill a mid-size city – nearly 100,000 – are arriving en masse at Expo City in Dubai, UAE. In our daily running blog, Carbon Pulse will report relevant or useful updates throughout the day. Timestamps are in local time (Gulf Standard Time, GMT+4).

INTERNATIONAL

Petrostates risk losing $8 trillion as demand for oil and gas falls, says report

Some petrostates could lose more than half their expected income from fossil fuels as the energy transition accelerates, technologies advance, and climate policy tightens, according to a report published on Thursday.

EMEA

EU carbon removal framework may add complexity to global market -experts

Independent carbon credit certification bodies and the EU’s own carbon removal certification efforts are likely to coexist in the removals market once the EU methodologies are issued, experts said during a webinar on Thursday, though this is not likely to occur before 2026.

EU member states are targeting 66% renewable power in 2030 – report

EU member states’ latest targets would put them on track to reach 66% renewable power in 2030, slightly short of their 69% goal under the bloc’s REPowerEU energy security plan, according to a report published in Brussels on Friday.

Court orders Germany to come up with emergency action for sectors violating CO2 emissions limits

A court has ordered the German government to set up a climate action plan to adequately tackle emissions in the traffic and construction sectors, adding to Berlin’s recent climate policy woes.

Euro Markets: EUAs post 10% monthly loss for November as sellers regain momentum at the close

European carbon prices ended the month of November down by more than 10% month-on-month, settling at a new 13-month low on Thursday as renewed selling during the settlement window unwound earlier strength that appeared to suggest traders were switching focus to the options market, while energy markets rose for the first time in five days.

AMERICAS

WCI Markets: CCA, WCA prices fall on low volumes, ECY adjusts APCR supply

California Carbon Allowance (CCA) prices dipped slightly as volumes almost halved over the past week, while Washington Carbon Allowance (WCA) prices also took a dive following the release of the draft cap-and-trade linkage bill, with volumes remaining low throughout.

US hemp-focused carbon credit platform closes, CEO says

A Denver-headquartered carbon credit exchange company will close due to a failure to secure funding, its CEO announced in a LinkedIn post this week.

CLARIFICATION – Washington releases draft cap-and-trade bill to facilitate WCI linkage

The Washington State Department of Ecology (ECY) on Monday published a draft cap-and-trade bill that incorporates amendments to facilitate linkage between the state’s carbon market with the broader California-Quebec scheme, as well as other tweaks to the Climate Commitment Act (CCA).

ASIA PACIFIC

Chinese developer secures mangrove project in Indonesia

A Chinese project developer has secured a mangrove-based carbon sink project in Indonesia, as it continues to expand its presence in the international voluntary market.

VOLUNTARY

SBTi resurrects plans to set out oil and gas company climate goals

Corporate climate goal assessor SBTi is resuming its plans for a climate goal template for oil and gas companies, more than 18 months after barring the big emitting firms from making submissions.

Tanzania looks to develop series of linked REDD projects to generate Article 6 credits

Plans are underway to create a series of linked REDD projects that will cover 1.8 million hectares of designated national parks in Tanzania, and generate correspondingly-adjusted carbon credits under Article 6 of the Paris Agreement.

Carbon credit registry launches new US forest carbon crediting methodology

A methodology for protecting US forests at risk from other land uses like real estate, mining, and agriculture has been announced by carbon credit registry in collaboration with a forest carbon firm.

AVIATION

Air Canada and Lufthansa look to bolster their green aviation credentials

Air Canada on Thursday firmed up plans to purchase durable carbon removal credits, while Germany’s national carrier announced a scaling up of its voluntary climate offering for passengers.

Production of sewage-based SAF could help scale up availability of greener aviation fuel

A new process of making sustainable aviation fuel (SAF) from sewage could be an important feedstock for the growing market for green aviation fuel, particularly in population-dense areas, with potential to also produce biochar that can generate carbon credits.

BIODIVERSITY (FREE TO READ)

UK biodiversity net gain release exposes ‘serious risks’, say ecologists

The publishing of draft legislation on the UK’s biodiversity net gain (BNG) framework has been broadly welcomed, but its planning permission proposals have triggered concerns about “serious risks” among ecologists.

French initiative to produce biodiversity benefit assessment methodology

A French initiative launched this week to develop a methodology for assessing the biodiversity benefits of activities, a move expected to underpin the creation of voluntary biodiversity credits.

Scottish nature restoration consortium to develop biodiversity credits as part of funding solution

A consortium of groups and organisations in Scotland on Thursday announced an investment plan for a new restoration project that in part will rely on a partnership with a nature fintech platform that recently won a contract with the government to develop a biodiversity credit system.

Indigenous Peoples-led nature credit framework launched by Pollination arm

A voluntary nature credit development framework led by Indigenous Peoples and local communities (IPLCs) has been launched by Pollination Foundation.

Biodiversity Pulse: Thursday November 30, 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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• Feature Writer/Sub-Editor, Carbon Pulse – North America
• Biodiversity Correspondent, Carbon Pulse – Europe (Remote)
• Carbon Finance Project Manager, Nexus for Development – Phnom Penh
• Senior Advisor, REDD+, Fauna & Flora International – Cambridge, UK
• Senior Program Officer, Auditing and Accreditation, Verra – Remote (Worldwide)

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Carbon Pulse has teamed up with CME Group to provide the market operator’s 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

EMEA

Unrequited love – Far-right Dutch leader Geert Wilders suffered a setback to his goal of forming a governing coalition on Wednesday when the New Social Contract (NSC) said it did not see a way of working with the PVV, Wilders party, unless it clarifies some of its more extreme stances. In a letter, they said that the PVV manifesto “contains views which in our judgment go against the constitution.” If Wilders did manage to form a coalition, this could mean the Netherlands backtracking on its climate policy ambitions and targets, as the PVV is staunchly opposed against any climate action.

Farming favour – Climate tech firm eAgronom is planning a series of on-the-ground trials in partnership with local farmers across Europe, aiming to help them generate additional revenue streams, improve soil quality, and access better financing through environmentally sound farming practices. These trials test measures concerning machinery, cover cropping, plant protection products, and various fertilisers. The testing aims to convince farmers to sign up for eAgronom’s soil carbon crediting programme and develop other operational efficiencies. Trial programmes are already underway across Estonia, Lithuania, Poland, and Spain. eAgronom plans to expand this into Latvia, Czechia, and Romania in 2024.

ASIA PACIFIC

Hydrogen methodology – Beijing has introduced a hydrogen-focused methodology under the regional crediting scheme to encourage carbon and pollution reduction in the transportation sector, the first of its kind in the country, the megacity’s environment bureau recently announced. Several companies in the Daxing District have initiated a project using this methodology, which could help reduce 24,000 tonnes of emissions per year. Certified emissions reductions will be allowed for use in the Beijing carbon market, the bureau said.

Almost there – Trading rules for China’s national ETS, which will underpin the operation of the world’s largest carbon market at a higher level, could be announced soon, China News reports. While the Chinese ETS has entered its second compliance period, the operations of the scheme are still managed by the Ministry of Ecology and Environment (MEE). The release of the long-awaited regulations is around the corner, and the ministry plans to ‘optimise’ the draft to further strengthen data quality and impose stricter rules in order to prevent fraudulent activities, Zhao Ke, head of MEE’s law department, told a monthly press conference on Thursday. The ETS regulations have been included in the State Council’s 2023 legislative work plan.

See you in court – Lawyers for Climate Action New Zealand are taking Z Energy to the High Court seeking declarations it has breached the country’s Fair Trading Act by misleading New Zealanders with its public messaging, the advocacy group announced Thursday. This is the first greenwashing case the be brought before the NZ courts. Z Energy has previously claimed it was ‘getting out of the petrol business’, citing its biofuel manufacturing plant, rollout of EV chargers in petrol stations, and moves into electricity retailing as examples, LCANZ said. However, the group described these messages as misleading and irresponsible, given that Z Energy has told shareholders it isn’t meeting its carbon reduction target, and also doesn’t plan to reduce fuel sales in the next decade. LCANZ said it had previously brought its complaint to the Commerce Commission, but it refused to investigate. A statement released by Z Energy said the company was considering its response.

AMERICAS

IRA inequality impact – The US Treasury Department released Wednesday a new place-based analysis of the impact of the Inflation Reduction Act (IRA), which finds that the impact of clean energy investments is predominantly going towards underserved communities and those affected by the transition away from fossil fuels. The analysis updates earlier studies from the Treasury with more granular data produced by the Massachusetts Institute of Technology (MIT) and the Rhodium Group, finding that counties with below average wages, household incomes, employment rates, and college graduation rates disproportionately benefited from the distribution of funds. Overall, the share of clean energy investments going to such communities rose from 68% to 78% following the passage of the IRA, the analysis found. In a press release accompanying the publication of the analysis, the Treasury stated, “this is a prime example of what Secretary Yellen calls ‘modern supply-side economics’, with economic research showing investments in communities like these have the highest ‘bang for the buck’ by unlocking untapped opportunities.”

Legislator letter – US advocacy group Citizens for Responsible Energy Solutions Senate sent letters to members of the Senate and House Appropriations Subcommittees on Energy and Water Development, urging them to support clean energy research, innovation, and technology legislation recommendations for Fiscal Year 2024, according to a press release Thursday. The appropriations legislation, which determines how money gets spent, would guide projects from the Department of Energy. Ranking Member John Kennedy (R), Chairman Chuck Fleischmann (R), and Ranking Member Marcy Kaptur (D) all received letters from the group. Improving grid capacity for renewable projects, carbon dioxide removal, critical minerals, hydrogen, and industrial decarbonization, steel upgrades, and manufacturing supply chain development are all included in the programmes that the group is advocating for.

HFC and ecology – Washington state’s Department of Ecology adopted a rule Thursday establishing a maximum global warming potential level for hydrofluorocarbons in new refrigeration, air conditioning, small cans of refrigerant, and non-essential aerosols, a press release said. A management programme will include registration, leak inspection, leak repair, recordkeeping, and reporting requirements for owners of large refrigeration and air conditioning units.

VOLUNTARY

Cooking up €16 mln – The Modern Cooking Facility for Africa (MCFA) launched this week its second call for proposals, inviting interested private companies selling modern and clean cooking solutions to compete for funding worth €16 mln. MCFA offer a combination of results-based financing, non-reimbursable catalytic grant financing, and technical assistance to companies active in the clean cooking market to support them to further expand and scale their businesses in sub-saharan Africa. The countries covered by the funding are the Democratic Republic of the Congo (DRC), Kenya, Malawi, Mozambique, Tanzania, Zambia, and Zimbabwe. More details on the initiative are available in Carbon Pulse’s previous reporting.

Mapping more – Space technology firm Chloris Geospatial has partnered with carbon credit certifier Ecosystem Restoration Standard (ERS), aiming to scale ecosystem restoration projects globally. ERS has selected Chloris Geospatial as its monitoring partner, following a benchmarking exercise to compare above-ground biomass data providers against a benchmark dataset using the company’s Earth Observation data and machine learning.

AND FINALLY…

Blue (carbon) oyster cult – Minamisanriku, a major oyster-producing region in Japan, aims to become the first in the country to certify emissions reductions from oyster farming, according to NHK. The town, based in northeast Japan’s Miyagi prefecture, has teamed up with Tohoku University to seek blue carbon status for the seaweeds attached to rafts used in oyster farming. Japan’s blue carbon sector is still in its infancy – only 21 marine-based projects are currently registered and most of the issuances have only been in the tens of credits, according to data from government-authorised Japan Blue Economy (JBE) Association.

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