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TOP STORY

Switzerland and Thailand conclude first transaction of Article 6 carbon units for Paris Agreement compliance

The first-ever Internationally Transferred Mitigation Outcomes (ITMOs) for use under a national Paris Agreement emissions pledge have been delivered, with carbon units from activities in Thailand transacted to Switzerland, the parties announced Monday.

VOLUNTARY

ANALYSIS: New int’l corporate Scope 3 emissions reporting laws highlight different regional aims for climate finance

Recent corporate value chain emissions reporting legislation from the EU and California, and similar policy proposals in Australia, will provide investors with the tools to identify climate-related transition risks; however, legislative goals differ, revealing how the projected impacts of corporate climate disclosure on financial sector decision-making may vary by context.

UK intermediary signs offtake agreement for millions of Kenyan blue carbon credits

A London-headquartered intermediary announced on Monday a 20-year agreement with Kenya’s Mikoko Initiative to manage at least 1 million tonnes of mainly blue carbon credits per year generated by mangrove and other forestry projects in the African country.

VCM Report: Split between old and new voluntary carbon market emerges at the start of year

The year has kicked off with strong divergence between what many regard as the old and new versions of the voluntary carbon market, even before the emergence of the first credits labelled with the ICVCM’s Core Carbon Principles (CCPs) stamp of high-integrity approval.

Forest carbon removal could meet a sixth of Japan’s climate commitments, study finds

Forests in Japan have the potential to offset a noticeable share of the country’s annual carbon emissions and create great monetary value in the coming two decades, though the market potential of forest carbon hinges on multiple factors, new research has found.

Korean securities firm plans foray into voluntary carbon market

A South Korean securities firm has teamed up with a domestic research firm to accelerate its carbon finance business, which may include the development of overseas emissions reduction projects.

Australian soil carbon startup expanding into US agricultural market

An Australian soil carbon startup is expanding into the US agricultural market.

INTERNATIONAL

Leading Article 6.2 buyers plan to proceed with and strike new bilateral deals

Two of the most active buyer countries in the Article 6.2 market for internationally transferred mitigation outcomes (ITMOs), still in its infancy, have stated that they will push ahead with existing Article 6 agreements and strike new ones.

Sustainability-linked loan issued to European utility for achieving SBTi-aligned target

The private sector arm of the World Bank has today announced the provision of a green and sustainability-linked loan to a European utility actively rolling out renewable energy in emerging markets, with one of the key provisions being that the company achieves its emissions-reduction trajectory as validated by the Science Based Target Initiative (SBTi).

Focus on efficiency, not just generation to cut emissions -report

Clean energy supply is only one side of the coin when it comes to emissions reductions but gains most of the attention, while energy efficiency could offer vast reductions in tandem with cost savings of some $2 trillion annually, according to a report released Monday.

EMEA

COP29 hosts set for huge emissions increase from gas production investment

The host of the COP29 climate summit, Azerbaijan, is set to raise its fossil fuel production by one-third over the next decade and create hundreds of millions of tonnes in additional emissions, according to analysis published on Monday, with polluting firms forecast to spend over $40 billion on the country’s gas fields.

Scientists, climate groups call on the EU to separate 2040 climate targets

The EU should separate emissions reductions, land-based sequestration and permanent carbon removals in its key proposal for the 2040 climate targets, scientists and climate policy experts urged the European Commission on Monday.

Euro Markets: EUAs drop more than 5% amid gas sell-off to wipe out gains since Christmas break

European carbon prices came under heavy pressure throughout Monday as forecasts for milder weather triggered a steep drop in natural gas prices, while aggressive short selling and the prospect of EUA auctions resuming next week heaped further pressure onto the market.

France puts forward bill to favour nuclear over renewables in nation’s low-carbon mix

Nuclear power will be the main source of electricity in France, leaving little room for renewables, according to a new draft law that attempts to find alternatives to fossil fuels.

ART programme accepts Ghana REDD+ documents for 2017-21 carbon credits

The secretariat of the ART carbon credit standard on Monday announced that it has approved documents submitted by Ghana under its TREES jurisdictional certification programme relating to a 2017-21 crediting period, moving the country one step closer to receiving unit issuances under the standard from activities undertaken in these years.

Abu Dhabi’s ADNOC invests in UK-based carbon capture developer

Abu Dhabi’s ADNOC has entered the international carbon capture and storage sector, acquiring a 10.1% equity stake in UK-based developer Storegga, the state-owned oil company announced on Monday.

AMERICAS

RGGI Market: Record high prices kick off new year, market awaits model rule changes

RGGI allowance (RGA) values rallied to begin the year as market participants saw limited impetus for a decline in prices amid anticipation of updates from the Third Program Review.

US EPA doles out nearly $1 bln for low-emission school buses across nation

The US Environmental Protection Agency (EPA) announced on Monday awards of nearly $1 billion to recipients across 37 US states selected for the agency’s Clean School Bus (CSB) Grants Competition.

WCI compliance instrument excess expands further in Q4

The WCI compliance instrument surplus bank increased in the fourth quarter as California emitters retired allowances and offsets for 2022 interm obligations in the linked-cap-and-trade system, according to data published Friday.

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Job listings this week

• *Director, Market Strategy & Engagement, Native – US (Remote)
• *(Senior) Quantitative Carbon Market Analyst, Veyt – Oslo
• *Feature Writer/Sub-Editor, Carbon Pulse – North America
• Senior Policy Advisers, Emissions Trading, UK Department for Energy Security & Net Zero – Various Locations
• Manager, Climate Aligned Industries, Carbon Dioxide Removal, RMI – US (Remote)
• Carbon Policy Analyst, BURN Manufacturing – Nairobi
• Carbon Policy Officer, BURN Manufacturing – Nairobi
• Carbon Integrity Officer, BURN Manufacturing – Nairobi
• Agroforestry and Carbon Credit Specialist, FAO – Mozambique
• Blue Carbon Consultant, GAIT – Hyderabad
• Expressions of Interest, Silvestrum Climate Associates – Remote

*Premium listings

Or click here to see all listings

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BITE-SIZED UPDATES FROM AROUND THE WORLD

ASIA PACIFIC

Hyping more hydrogen – Australia’s Woodside Energy has signed with South Korea’s SK E&S to look at what it calls a “lower carbon hydrogen value chain”. The memorandum of understanding will look at how they can develop hydrogen, ammonia, and other related products, Woodside said Monday, and also their offtake as well as equity participation in ammonia and hydrogen production projects; and project engineering supply opportunities. Late last year, Woodside delayed the sanction of its Oklahoma-based hydrogen project based on offtake concerns and lack of clarity around aspects of credits related to the US Biden Administration’s Inflation Reduction Act. In this case the two are looking at the existing and proposed government policies of both nations. Long-time Woodside hydrogen boss and executive vice prescient Shaun Gregory said the new MOU showed the increasing demand for large-scale decarbonised energy. “This collaboration will help inform our development of the new energy products and services which could support our customers’ decarbonisation, unlock new market opportunities and support the broader Asia Pacific region in their climate goals and net zero aspirations,” he said. South Korea and Japan, one of the largest buyers of Woodside’s LNG, both have net zero targets of 2050. 

Solar gigafactory – Australian solar PV manufacturer Tindo has announced plans to build a solar panel “gigafactory” in the country, but has said government funding support would be needed to meet the estimated A$90-100 mln ($60-67 mln) development costs, RenewEconomy reports. Tindo CEO Richard Petterson said the proposed factory would make up to 2.6 mln panels a year and could be in production by mid-2025. He said 70% of the cost of a solar panel factory was in the construction and land, saying a deal could be done on the latter to keep spending within budget. The company is eyeing funding from Australia’s A$15 bln National Reconstruction Fund, the Australian Renewable Energy Agency, or state initiatives. Tindo is Australia’s first and last remaining solar panel manufacturer.

New funding support – The government of South Korea will be offering 120.2 bln won ($91 mln) to support companies that plan to improve their emissions reduction capabilities through the use of new facilities or equipment, according to a filing released by the country’s environment ministry. The government subsidy is up to 6 bln won per business site and 10 bln won per company, and the exact rates will be determined based on business size. Companies eligible for this year’s funding programme will be selected by a review committee comprised of external experts, the document said.

Not enough support – South Korea has cut this year’s blue carbon budget by around 23%, which could hamper the country’s research progress on the carbon absorption capacity of tidal flats, the Kyunghyang Shinmun reports. The total area of ​​the tidal flats on Korea’s southwestern coast is 2,482 sq. km, representing 2.5% of the national territory, though 98% of these flats are non-vegetated areas. There is not enough available data about the absorption capacity of such tidal flats, and obtaining certification by UN-backed IPCC will become more difficult given the reduced budget, the report said.

Net zero ride – The Indian government on Friday approved an MoU signed between the South Asian country and the United States Agency for International Development (USAID) to help Indian Railways achieve net zero emissions by 2030, The Times of India reported. Under the partnership, Indian Railways and USAID will work for long-term energy planning which will reduce the former’s dependence on imported fuel such as diesel and coal. The MoU will also facilitate utility modernisation, advanced energy solutions and systems in areas such as renewable energy and energy efficiency, among others. The Indian Railways, which is a statutory body under the Ministry of Railways, is the fourth-largest in the world by size and has also worked with USAID previously for the installation of solar rooftops at the railway platforms across the country.

EMEA

Controversial capture – Drax, previously the UK’s most polluting coal-fired power station, is expected to receive government approval for a controversial multibillion-pound carbon capture scheme that aims to transform the facility into a “carbon negative” power station. Critics, including environmental groups, oppose Drax’s transition from coal to wood burning, arguing it causes environmental harm and increases CO2 emissions. However, Drax claims this initiative, involving the attachment of carbon capture plants to its units, would significantly reduce CO2 emissions. UK Energy Secretary Claire Coutinho is set to extend the subsidy system supporting Drax, which received £617 mln last year, into the 2030s. This move is part of the UK’s broader energy strategy, increasingly a point of political debate. Drax’s scheme, known as bioenergy with carbon capture and storage (BECCS), is seen by the government as key to achieving net zero emissions. Drax’s CEO asserts that BECCS is vital for generating renewable power and carbon removal. Despite these claims, environmentalists criticise the Beccs approach, questioning its effectiveness and impact on climate change. They advocate for alternative investments in renewable energy sources like wind and solar. The government, however, maintains that biomass and carbon capture are essential for reaching net zero goals. Drax plans to invest in developing two BECCS units, potentially creating thousands of jobs and contributing to the UK’s carbon removal targets. (Telegraph)

Hi-tech nuclear – The UK is launching a £300 mln investment drive in hi-tech nuclear fuel, hoping to end Russia’s dominance as the only commercial producer of a type of enriched uranium needed for the next generation of reactors, the Independent reports. The plan will involve a £300 mln investment in high-assay low-enriched uranium (HALEU), a programme to provide jobs and investment in northwest England, as well as another £10 mln to develop the skills and sites needed to produce other advanced nuclear fuels in the UK. Ministers claim the move will help the net zero transition and won’t mean higher prices for consumers.

President says no – Alok Sharma, the UK’s former business and energy secretary and COP26 president, will not vote in favour of his political party’s oil and gas bill, criticising it as a sign the government was not serious about meeting its international climate commitments. The bill, debated in British parliament on Monday, would allow for an annual licensing regime for oil and gas exploration contracts. It has been hugely controversial among the green wing of the governing Conservative party – the former minister Chris Skidmore announced on Friday he would be stepping down as a lawmaker as a result of the proposed legislation – as well as opposition parties and observers. Sharma rarely rebels against the government, but has been heavily critical of the bill. (The Guardian)

Options on the table – Prioritising energy demand reductions could be the most cost-efficient way to living without Russian gas in Europe and leave considerable space for further emissions cuts, says a new study published on ScienceDirect, which explores three different directions the EU could take to replace Russian natural gas.  The study finds that EU climate targets can still be reached in all three strategies, but costs increase, while promoting energy efficiency or domestic renewables will ultimately boost end-use decarbonisation. The three approaches put forward to living free of Russian gas in Europe are (a) replacing with other gas imports, (b) boosting domestic energy production, and (c) reducing demand and accelerating energy efficiency. Substituting Russian gas with gas from other trade partners could risk further fossil fuel dependency while missing the opportunity to accelerate decarbonisation, while boosting renewables would require steep investments, potentially burdening consumers further, the study finds. Energy demand reductions could offer ability for further emissions cuts at the lowest power-sector investment costs, but could risk the relocation of energy-intensive industries, it adds.

Coal closure – The 690 MW Mehrum 3 coal-fired power plant in Germany will be closed on Apr. 1, confirmed the owner German utility EPH, as reported by Montel News. The announcement contradicts an entry on the EEX transparency website that notes a maintenance shutdown from May 1, 2023 – Jan. 1, 2028. The unit was returned to the market last year to help secure supply amid the European energy crisis and will be dismantled after closure, a spokesperson said. Germany officially plans to exit coal-fired generation by 2038, though the government is pushing to bring this forward to 2030.

French spending – The European Commission has approved a €2.9 bln French scheme to provide tax credits to support investment in green industries to foster the transition towards a net-zero economy. The scheme was approved under the EU’s State Aid Temporary Crisis and Transition Framework adopted last year, loosening the bloc’s state aid rules amid the energy crisis.

Slovenia spin-off – State-owned Slovenian Sovereign Holding (SSH) has revealed that it may spin off a ”thermal energy company” containing its coal assets from HSE, the country’s biggest electricity producer. The move would be in line with Slovenia’s coal phaseout strategy and given that electricity production from coal would be highly unprofitable, especially from 2025 onwards. The TES plant is supplied by the Premogovnik Velenje coal mine. The first phase of preparations for the spinoff is scheduled to be completed by mid-year. (Balkan Green Energy News)

AMERICAS

Florida task force – Florida State Senator Ana Maria Rodriguez (R) and Representative Lindsay Cross (D) introduced legislation to create a taskforce to study carbon sequestration and ways to cut CO2 emissions in the state, Florida Politics reported Sunday. The twin bills introduced by the two last week, SB 1258 and HB 1187 respectively, would require the task force within two years to study suitable habitat and land uses for carbon sequestration, establish methodology, metrics, and benchmarks for success, and identify funding and market opportunities for such a programme. In that time, the group would need to produce relevant research and present a report back to the state legislature. The proposal has received support from environmental groups, such as the Surfrider Foundation. “A state-level carbon sequestration programme will help support long-term resiliency goals while rewarding habitat restoration, compatible land use policies, and sustainable agricultural practices,” said Emma Haydocy, the foundation’s policy manager for Florida.

Ferry forward – A Washington law that would require the state’s Department of Transportation to design, purchase, and construct hybrid electric ferry vessels and install associated and necessary infrastructure for their operation using funds from the state’s Climate Committment Act (CCA) was referred to the House Committee of Appropriations Monday, according to the legislature’s website. The bill is sponsored by Rep. Jim Walsh (R) and was prefiled for introduction on Dec. 6. The CCA established the state’s cap-and-invest programme, which on Thursday revealed it raised $1.8 bln in revenue in its first year, $1.5 bln of which will go to state climate initiatives, with the remainder designated to consigning entities.

California CO2 storage – The US Environmental Protection Agency (EPA) announced in Dec. 2023 its intent to issue four carbon dioxide injection well permits in California, located within the Elk Hills Oil Field in Kern County. The applicant, Carbon TerraVault Holdings, a subsidiary of energy management company California Resources Corporation, looks to inject 1.46 MtCO2 annually into the four proposed wells over a 26-year injection period, sourced from proposed hydrogen plant Lone Cypress, pre-combustion gas treatment unit Elk Hills, and proposed direct air capture facility Avnos. The EPA will host public workshops throughout Jan. and Feb. and is accepting public comments until March 20.

Taking its time – Guyana is in no rush to sell its remaining carbon credits, although it is hoping to move forward with a second agreement, said Vice President Bharrat Jagdeo during a weekly press conference. For the country to advance another agreement, conditions would have to be “favourable” as the government is in a “comfortable position to explore the markets”, he said. In Dec. 2022, Guyana signed a multi-year agreement with Hess Corporation, for the oil company to purchase 2.5 mln credits annually for the years 2016-2030. The deal will generate $750 mln over 10 years and fund development projects and climate adaptation efforts in Guyana. It followed the announcement that the Architecture for REDD+ Transactions (ART) had issued 33.5 mln TREES credits to Guyana – the first country to receive such status. The market for such credits has softened since COP28 but similar agreements should still be able to advance, said Jagdeo.

VOLUNTARY

Building blocks – Carbon credit developer Klimat X declared the completion of 1,000 ha in the 2023 planting season for its Sierra Leone restoration project, and also said it submitted the Project Design Document for final approval with an independent validation company.  The rewilding project in Sierra Leone initially spans an area of 5,000 ha, with the potential to expand by a further 20,000 ha. Klimat X last year announced that the $2.5 mln pre-purchase agreement is expected to produce between 1.6 to 1.9 mln tonnes of carbon credits over 30 years. The developer has also decided to switch to Verra’s new VM0047 restoration protocol – used for initiatives that increase the density of trees or other types of wooden vegetation – and does not anticipate the change to cause any significant delays.

SCIENCE & TECH

Subsea CCS – UK-based oil and gas technology company TechNipFMC has been awarded an engineering, procurement, construction, and installation contract from Brazilian energy giant Petrobras worth over $1 bln, the former announced last week. The contract aims to deliver its Mero 3 HISEP (high pressure separation) project, which uses subsea processing to capture CO2-rich dense gases and then inject them into a reservoir. The two companies said they have advanced the qualification of some of the core technologies needed to deliver the HISEP process entirely subsea, several of which are proprietary and will be used in other subsea applications. These include gas separation systems and dense gas pumps which enable the injection of CO2-rich dense gas. HISEP technologies enable the capture of CO2-rich dense gases directly from the well stream, moving part of the separation process from the topside platform to the sea floor, and the Mero 3 project in Brazil’s pre-salt field will be the first to utilise Petrobras’s patented HISEP process subsea, according to the release. The contract covers the design, engineering, manufacture, and installation of subsea equipment, including manifolds, flexible and rigid pipes, umbilicals, power distribution, as well as life of field services.

AND FINALLY…

Adapt and overcome – One of the most visited tourist sites in North Carolina, a coastal state in the southeast US, is a floating museum that has opted to “live with rising water rather than fight it”, in light of incessant saltwater floods that have swallowed its lone access road, parking lot, and access to its visitor centre. Battleship North Carolina, featuring the most decorated US battleship of WW2 anchored on the Cape Fear River, opted to accommodate for rising sea levels through restoration of its parking lot into a tidal creek and wetland rather than via the construction of walls to defend against rising sea levels, reported The Washington Post last Tuesday. The approach is pursuant to the region’s geography from hundreds of years ago. The estimated $4.1 mln cost of this initial work could demonstrate what is possible if other places facing similar problems are willing to adapt by returning certain spots to nature, reported The Post.

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