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TOP STORY
Brazil cap-and-trade bill passes lower chamber, to return to senate
The Brazilian Chamber of Deputies on Thursday evening passed a bill establishing a national cap-and-trade programme, though the legislation will now head back to the senate after undergoing a number of changes.
INTERNATIONAL
ANALYSIS: Weak links in UN climate talks text put raised ambition in doubt
A key test of the impact of the COP28 UN climate talks will be whether the ambition filters through to countries’ updated NDC climate pledges, but experts say the vague language and loopholes of an otherwise breakthrough agreement could hamper this.
Article 6 cookstove carbon credits set to trade at double the price of non-adjusted units
Cookstove carbon credits tagged with Article 6 authorisation look set to trade at around double the price of current market values, according to sources this week as the first of these types of units emerge.
VOLUNTARY
New REDD+ methodology would have issued fewer carbon credits to past projects, mitigating risk of inflated baselines -study
A certifier’s new REDD+ methodology would have issued fewer carbon credits to past REDD+ projects in three of four cases studied, according to newly-published research, potentially mitigating over-crediting associated with forestry-based activities.
Wildlife Alliance refutes human rights abuse allegations at Cambodian REDD+ project, slams Verra investigation process
Carbon project developer Wildlife Alliance has published an open letter vehemently rejecting human rights abuse allegations at its Southern Cardamom REDD+ project (SCRP) in Cambodia, while attacking Verra over its lengthy investigation process that it says has undermined the project.
Carbon standard releases new methodology for removals tech
Carbon standard and registry Isometric on Thursday released a new direct air capture (DAC) methodology for public consultation.
Launch of first carbon credit-secured loan to provide working capital for mangrove project
A project developer has made use of carbon forward agreements to secure a fixed-term loan via a lending platform in order to provide working capital for the communities behind a mangrove restoration project in Africa.
Catalonia approves regional carbon credit system focused on nature-based solutions
The Catalonian government has approved the creation of a regional carbon credit system to draw investment to local forests, farmland, and coastal and marine ecosystems, the Spanish regional administration announced this week.
Carbon finance startup announces it will close operations
A startup seeking seed funding to help channel primary voluntary carbon investment has wound up operations.
Indian carbon removals startup raises $550k in pre-seed funding
An Indian climate tech startup has raised $550,000 in pre-seed funding towards developing what it said are scalable nature-based sequestration solutions tailored to the country’s unique environmental conditions.
EMEA
EEX publishes 2024 EUA auction calendar, showing 22% hike in Jan-Aug sale volumes
Energy exchange EEX late Thursday published next year’s EU carbon allowance auction schedule, showing an increase of 22% over the volume sold between January and August this year.
EU watchdog slams Brussels for declining ETS data request
The EU Ombudsman has criticised the European Commission’s refusal to provide access to documents concerning EU ETS emissions reported for the ceramics industry.
Euro Markets: EUAs climb to five-week high on short covering as energy markets advance
European carbon prices rose top a five-week high on Thursday before consolidating amid reports of short covering as activity began to wind down ahead of the holiday season, while energy prices rose for a second day as France’s nuclear maintenance programmes for 2024 and 2025 were extended.
AMERICAS
Oregon appeals court finds state’s climate programme invalid
The Oregon Court of Appeals ruled Wednesday that the US state’s market-based Climate Protection Program (CPP) was invalid on the basis of its administrative rules.
Washington issues first carbon offsets for state cap-and-invest programme
The Washington Department of Ecology (ECY) on Wednesday issued the first carbon offsets under the state’s cap-and-invest programme, awarding them to two projects that collected and destroyed refrigerant gases.
WCI Markets: CCA, WCA prices decline as market participants look for direction
California Carbon Allowances (CCAs) and Washington Carbon Allowances (WCAs) both declined over the past week, as “random” end-of-year market dynamics took hold of thinning volume in the former, while the prices for the latter could be driven by weakening hydropower in the Pacific Northwest in the near future, market participants noted.
California gasoline sales retreat in September as diesel picks up, but both fall behind 2022 levels throughout Q3
California gasoline sales for September dipped in comparison to levels seen in August while diesel consumption continued its upward trajectory for a second month, although both values hovered below 2022 levels, according to state data released Thursday.
ASIA PACIFIC
Australia introduces new fuel standards, will cut CO2 emissions by 18 Mt by 2050
Australia has announced new fuel standards for 2025 when new imports of cars, including SUVs, will need to comply with European fuel standards.
New Zealand emissions forecasts suggests fewer ITMO required than previously projected
New Zealand government modelling expects the country to overshoot its emissions budget to meet its Paris Agreement target, but not by as much as previously predicted.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Verra nature credit ‘exact’ same as offsetting definition
Part of certifier body Verra’s definition of nature credits, under the proposed standards in its SD Vista Nature Framework, is equivalent to its description of offsets, an executive at UK-funded development agency FSD Africa has said.
EU: Major challenges remain with agricultural biodiversity
The fight to tackle the biodiversity crisis on farms in countries across the EU faces significant obstacles despite the setting of national plans on the topic, the EU executive’s environmental department has said.
Nokia backs Finnish project to create biodiversity footprint ‘common language’
Electronics company Nokia has announced support for a research project from a Finnish university that aims to pave the way towards a common international standard for biodiversity footprints.
Australia seeks experts for Nature Repair Market committee
The Australian government has put the call out for experts to join a panel that will ensure its Nature Repair Market (NRM) is informed by scientific rigour and First Nations perspectives, it announced Wednesday.
Dutch bank reveals ‘transformative’ potential of valuing ecosystem services
Valuing ecosystem services with monetary figures can help to show the true profitability of investments in conservation activities, Hague-headquartered ASN Bank has said.
Biodiversity Pulse: Thursday December 21, 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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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Pump proposal shelved – Proposals for a dedicated action plan on boosting the roll-out of heat pumps have been shelved by the European Commission to focus on other priorities, with the move likely to delay the initiative beyond EU elections in June, say industry sources. The action plan was originally scheduled for publication in 4Q 2023. By 2030, Brussels aims to have a minimum of 30 mln heat pump units installed across the EU, in a drive to decarbonise heating and reduce dependence on Russian gas, but little progress has so far been achieved. Key hurdles are that EU countries have yet to restrict the sale of traditional fossil-based heaters, while fossil gas is still often cheaper than electricity, effectively abolishing the efficiency advantage of heat pumps. (Euractiv)
Italy storage – A €17.7 bln Italian scheme for the construction and operation of a centralised electricity storage system has been approved by the European Commission, with the aim of contributing to the European Green Deal and Fit for 55 package. The facilities will have a combined capacity of over 9 GW and the scheme will run until Dec. 31, 2033. The measure will enable more renewable energy to be better integrated into the Italian power system – helping to smooth the ebb and flow of intermittent renewables. Beneficiaries will be selected through a competitive process, based on offers relating to the lowest amount of aid requested per offered capacity volume.
Bulgaria finally gets its cash – Bulgaria will receive €1.2 bln from the Just Transition Fund following the adoption of the country’s territorial just transition plans by the European Commission today. Bulgaria submitted plans to the EU detailing how it will help coal-reliant regions phase out until 2038, though it has not specified when each plant will be retired. This means it will finally get the tranche of money under the Just Transition Mechanism, after missing out on €100 mln it could have received from the fund in 2023 when it did not submit its territorial plan in time.
Full steam ahead – Progress on the world’s largest offshore wind farm is set to go ahead following Orsted’s announcement it had reached a final investment decision on the Hornsea 3 project off the UK coast, Reuters reports. The 2.9 GW project will have enough capacity to power over 3.3 mln UK homes and is expected to cost DKK 75 bln (c. $10.5 bln), with completion expected by the end of 2027. It will form a key part of Britain’s push to improve energy security and ability to meet its climate targets. The decision comes after several developers cancelled projects in the UK and the US this year due to soaring supply chain costs and the impacts of inflation.
ASIA PACIFIC
Back-up knowledge – Japan’s Ministry of Economy, Trade and Industry (METI) has commissioned the Mitsubishi Research Institute to study the relationships between carbon pricing schemes and decarbonisation investments. Its findings will feed into the design of Japan’s emissions trading scheme, which will launch in 2026 and gradually be scaled up in the following years. MRI will look at the impacts of carbon pricing schemes in other countries as well as that of other environmental policies that have been introduced at home.
Still the cheapest – The CSIRO has released its draft GenCost Report for public consultation, finding new build energy costs have stabilised compared to the 20% increase reported last year. Onshore wind costs rose 8% while large-scale solar fell by the same amount, however, the two renewable energy costs were found to be the cheapest source of electricity overall similar to previous iterations of the same report. The cost of gas turbine technologies increased by 14%. Nuclear small modular reactors – a pet project for the Coalition opposition – emerged as the highest-cost technology explored in the report. The 2023-24 draft report incorporates pre-2030 integration costs, such as storage and transmission for variable renewables in the levelised cost of electricity data.
Carbon neutral gold – An Australian gold mining minnow with assets in Latin America has told the ASX it has hit carbon neutrality at one of its mines. Its certification covers its Hualiah gold project in Argentina. The company, or perhaps its shareholders, got so bored of waiting for a permit to drill for onshore gas in South Africa that it unexpectedly moved to gold exploration in South America, taking permits in Ecuador and Argentina several years ago. It said Thursday its Hualian gold project was the first to be certified as carbon neutral in Argentina. Emission sources identified include operations, cooking, heating, machinery, transportation, electricity, commercial flights, organic waste, and wastewater treatment. Total Scope 1, 2, and 3 greenhouse gas emissions were measured at 51,340 tonnes of CO2 equivalent, it said. It bought green bonds in a South Korean waste energy project. The company hopes the mine will be the first to operate with a carbon neutral footprint in its production phase.
AMERICAS
Clean air challenge – The US Supreme Court announced Wednesday that it will hear a challenge to the Environmental Protection Agency’s (EPA) anti-air pollution ‘good neighbour’ rule from a group of Republican-led states and industry actors, reports CNN. The challenges filed an emergency request with the Supreme Court last month, asking it to block the EPA’s regulation to cut down on harmful smog and air pollution that wafts downwind and across state lines. The petitioners claim the rule would create economic damage and threaten grid stability, but Solicitor General Elizabeth Prelogar argued in court papers that the rule is a “reasonable exercise of the EPA’s authority under the Clean Air Act” and doesn’t run contrary to the law. The court set oral arguments for February. In a statement reacting to the news, EDF General Counsel Vickie Patto said the rule is “vitally needed and thoroughly reasonable”, as it will “ensure healthier longer lives for millions of people impacted by upwind smokestack pollution”. “It would be a radical departure from settled law for the US Supreme Court to damage these proven life-saving protections under our nation’s clean air laws – based on the same bedrock legal protections overwhelmingly affirmed by the Court in 2014,” she also argued.
Intent to convert CO2 – The US Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) on Thursday presented a notice of intent to offer funding from the Bipartisan Infrastructure Law for large-scale CO2 conversion projects that develop the sustainable feedstocks and conversion technologies necessary to produce crucial fuels, materials, and other carbon-based environmentally responsible and economically valuable products. The funding, if issued, will support research and development of electrochemical conversion processes that convert carbon emissions into valuable products such as engineering polymer/resin precursors, specialty chemicals, and commodity chemicals. Similarly, feasibility studies that examine retrofitting refineries for carbon utilisation and production of value-added products will receive funding as well.
Funding for Beliz – The Caribbean Community Climate Change Centre in Belize has received funding for its project titled “Building Grenada’s Strategic Framework to Enhance the Country’s Capacity to Transition to Low Emission Development” from the UN’s Green Climate Fund. The Centre intends to apply part of the proceeds towards contracting a firm to develop a multi-sectoral emissions assessment and roadmap on emissions trading scheme, a sectoral business opportunities report, as well as a resource mobilisation strategy. The maximum budget for the contract is $82,000, inclusive of $9,500 for reimbursable expenses to cover workshop costs. Interested applicants can submit their expression of interest until Jan. 23, 2024. The contract duration will last for seven months.
Collecting receipts – Senate Bill (SB) 5877 was prefiled in Washington State Tuesday, which would require require customers’ gas and electric bills to include a complete, itemised list of any rates and charges that are being imposed by the utility to recover the costs of complying with the state’s Climate Commitment Act – the legislation responsible for the state’s cap-and-invest programme. The bill was sponsored by Senator Phil Fortunato (R).
INVESTMENT
Blunt on bonds – Twelve of the UK’s biggest pension providers are failing to use a critical financial lever in their engagement with fossil fuel companies and are opening the door to legal risk, environmental lawyers ClientEarth have warned. The group has written to the providers to say that – despite some meaningful shareholder engagement – funds have yet to focus on their bond investments, which are a much bigger yet lesser-known source of fossil fuel financing.
AVIATION
Early movers – Airline alliance Oneworld has become the first to collaborate with IATA CO2 Connect, an online tool that provides the most accurate CO2 emission calculations for any given commercial passenger flight. The 13 Oneworld member airlines including Alaska Airlines, American Airlines, British Airways, and Cathay Pacific will contribute data to the IATA CO2 Connect emissions calculator, which intends to empower travellers with information pertaining to the CO2 impact of their flights.
AND FINALLY…
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