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TOP STORY
Experts say REDD+ project appears vastly over-credited by Sri Lankan government fund
A Sri Lankan government fund plans to issue more than 8 million carbon credits over a decade to a REDD+ project in Brazil, though experts say the carbon sequestration figures the project lists appear to be exaggerated by several orders of magnitude.
INTERNATIONAL
More work needed to triple renewable power by decade’s end -IEA
If the world is to meet the Paris target and the more recent Global Stocktake commitment, more work, largely policy-driven, will be needed to push up renewable energy generation, the International Energy Agency (IEA) said Thursday.
Asset manager support for environmental, social issues has “catastrophically crashed”, warns investor pressure group
Support amongst the world’s largest asset managers for shareholder resolutions involving environmental and social (ES) issues has “catastrophically crashed”, according to a campaign group that promotes responsible investing.
EMEA
Russia could weaponise fertilisers, EU should safeguard its own production -CEO
The CEO of one of the world’s largest fertiliser producers Yara International has warned the EU risks swapping its Russian energy dependence to dependence on the country’s fertilisers and food, as imports to the EU and other countries grow and home-grown production falls.
EU lawmakers rubber-stamp new emissions laws ahead of elections
The European Parliament’s environment and industry committees on Thursday approved some of the last files that will soon be regulating greenhouse gas emissions across the bloc, in one of the last meetings as EU lawmakers approach elections time.
Italy weighs up special administration to save major steel mill
Irish congestion toll shines light on lagging sustainability action amid budget woes, minimal taxation
An Irish road congestion toll in effect as of Jan. 1 provoked sharp rebuke from a Dublin-area official on Thursday as the EU country lags on sustainability commitments amid tightening purse strings and reluctance to tax heavy-emitting industries.
Russia’s Sibur builds nation’s largest portfolio of emissions reductions activity with new projects
Russian petrochemical company Sibur has added three climate projects to the Russian Registry of Carbon Units, giving it the largest portfolio of projects to reduce emissions among the country’s businesses.
Carbon capture tech company Capsol secures cement study as Baltic CCS facility takes shape
Carbon capture technology provider Capsol Technologies has been awarded a feasibility study for a cement plant in Latvia, with the facility forming part of a major CCS initiative intended to capture much of the Baltic region’s ETS-covered emissions.
Euro Markets: EUAs extend losses as bearish sentiment takes root, while some short covering seen starting
European carbon broke away from its recent close correlation with natural gas prices on Thursday, following the fuel market early on before breaking free to drop to a new three-week low in a busier-than-normal session, with some participants suggesting that short-positioned traders may be starting to take profit.
AMERICAS
US, California agencies and diesel engine manufacturer reach record $2 bln+ vehicle emissions cheating settlement
US federal agencies alongside California’s ARB and Attorney General’s Office released on Wednesday details of a proposed settlement totalling $2 billion with a US-based engine maker for alleged violations of both the federal Clean Air Act (CAA) and California law.
Outcome of upcoming US Supreme Court cases could have serious implications for environmental regulation -experts
The enforcement of US environmental law could be endangered should two Supreme Court cases overturn a landmark ruling that defined the balance of power between the judiciary and executive branches in implementation of federal law, legal experts have noted in a series of webinars.
Delaware judge limits geographic scope of climate change lawsuit against Big Oil firms
A Delaware Superior Court judge on Tuesday partially dismissed a state lawsuit against a multitude of Big Oil firms to hold them responsible for the effects of climate change, ruling that the global and out-of-state emissions were outside the boundaries of state law, while upholding the state’s case regarding emissions stemming from within Delaware’s border.
WCI Markets: CCAs break records as market repositions, WCAs suffer from political uncertainty
California Carbon Allowance (CCA) prices broke all-time records this week, with traders articulating an array of opinions behind the rally, while Washington Carbon Allowance (WCA) prices witnessed a fairly precipitous pullback, which multiple market participants said could be attributed to political uncertainty around the future of the programme.
Experts urge improved LCFS regulations to support prices
The proposed regulatory amendments to California’s Low Carbon Fuel Standard (LCFS) are inadequate to shrink the LCFS credit bank and lift prices, several experts told conference participants Thursday.
Consulting giant forges deal with US carbon removals developer that includes DAC credit purchase
A consulting giant has entered into a strategic agreement with a major US carbon removals developer that includes a deal to buy direct air capture (DAC) credits.
VOLUNTARY
INTERVIEW: Shift to net-zero emission concrete gains pace with CO2 storage solution
Swiss researchers have developed a net zero emission concrete process that relies on producing uniform carbon-rich pellets that can be easily incorporated into concrete aggregate, with potential to generate carbon removal credits in future.
Popular biochar-based carbon removal trails behind DAC in end-of-year investment numbers
Biochar-based carbon removals accounted for a minority of investment in durable CDR solutions in 2023 despite widespread enthusiasm for the technology among public and private sector actors alike, trailing behind funding in direct air capture (DAC), according to a report released Thursday.
Saudi Arabian tech company eyes production plant for its carbon-negative concrete
A Saudi Arabian climate technology company that has developed carbon-negative concrete has struck a deal with one of the country’s house builders to explore building a construction plant that could generate 1.3 million carbon credits a year.
World’s biggest blue carbon project overcredited, but good on additionality -rating agency
The world’s biggest blue carbon project, based in Pakistan, is likely to have been slightly overcredited, and it is difficult to determine the actual amount of carbon involved in the project, according to a rating agency.
ASIA PACIFIC
Australian billionaire commits to a massive 14GW of new wind power
The same day the International Energy Agency said the world isn’t on track to meet its commitment to increase renewable energy capacity threefold by the end of the decade, Australia’s richest man announced plans for 14 gigawatts of new wind capacity.
South Korea urged to make major cuts in CO2 allocation in next ETS phase
An environmental group has urged the government of South Korea to make substantial changes to a basic plan underpinning the next phase (2026-30) of the domestic carbon market, as the current calculation method for allocated carbon permits is considered too generous for emitters.
The fate of nuclear power at stake in Taiwan election
The coming Saturday’s presidential and parliamentary elections could reshape the direction of Taiwan’s energy policy, given the lack of consensus among presidential candidates on whether to build more nuclear plants.
BIODIVERSITY (FREE TO READ)
‘Illusionary’ biodiversity credits enable ‘magical thinking’, non-profit claims
Biodiversity credit markets risk distracting governments from their role in financing nature by taking up limited time and capacity, non-profit Campaign for Nature has claimed in a paper.
Nature tech cohort launches with biodiversity credit developers
Two biodiversity credit developers are among the eight members of a cohort focused on nature technology and innovation launched by network Climate Collective.
Biodiversity Pulse: Thursday January 11, 2024
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
Nuclear for hydrogen – Small module nuclear reactors (SMRs) made by Newcleo will be used to decarbonise hydrogen by powering the production of electrolytic hydrogen and sustainable chemicals, including carbon-neutral ammonia, methanol, e-fuels and derivatives, thanks to a new agreement signed by Newclear with Maire Tecnimont units NextChem Tech and Tecnimont. Newcleo is developing fourth-generation SMRs to produce nuclear energy while Maire Technimont is focused on building plants for the petrochemicals, refining, and fertiliser industries. (Nasdaq news)
Low-carbon hydrogen – Equinor is teaming up with global industrial gas and engineering provider Linde on a project development agreement for the H2M Eemshaven low-carbon hydrogen initiative in the Netherlands. Equinor will reform natural gas from the Norwegian continental shelf to hydrogen using CCS, with over 95% of the captured CO2 to be stored safely offshore Norway. The plan is to construct a hydrogen plant in Eemshaven industrial area, with production set to commence late 2028, which will then connect to onshore pipelines in the Netherlands and Germany. Energy provider Equinor thereby secures access to carbon transport and storage while providing the market with low-carbon hydrogen. (Gas World)
Berlin schedule – Exchange EEX has published its 2024 certificate sales calendar for Germany’s nEHS carbon pricing system for road transport and heating that from this year also includes waste used in waste incineration plants. Sales will take place between 0900-1500 CET twice a week, on Tuesdays and Thursdays, with the first sales date scheduled for Mar. 5 and last one on Dec. 5. The nEHS has been a fixed price system since its 2021 inception, with 2024 units costing €45/tonne. EEX will make a limited number of 2023 units available over March-September at least year’s price of €30 ahead of the Sep. 19 compliance deadline for 2023 emissions. Read Carbon Pulse’s latest on the nEHS, which is due to switch to a floating price trading scheme from 2026.
Congo ties – Family members of DRC’s defence minister Jean-Pierre Bemba – who was accused of war crimes and found guilty of bribing witnesses – have set up a carbon credits company called Societe Conservation Forestiere (SCF) in the country, sparking fears the company will get favourable government treatment. This is according to Climate Home, citing previously unreported company documents that show the firm has applied to the Sud-Ubangi provincial government for a “forest conservation concession” but it has not made progress on the ground and little else is known about it.
ASIA PACIFIC
Deforestation rises on paper demand – Indonesia’s deforestation is on the rise after years of decline as the nation’s once-huge pulp sector reverses the trend, Mongabay reports. The environmental news service suggests a five-fold increase in 2022 over 2017. It said after public pressure wood pulp producers and buyers adopted zero-deforestation commitments, which led to a “dramatic” decline in deforestation rates. It puts this at 85% compared to the three-year average of years 2017-19 and 2010-12, citing data from Trase. Trase uses satellite data from TheTreeMap. Global demand for both paper and viscose, a fabric, are the culprits.
Reducing import bills – India will experience a 35% rise in its energy demand by 2030, according to a joint report released by the World Economic Forum and Bain & Company, The Economic Times reported. The South Asian nation will have to target a production of 5 mln metric tonnes annually by 2030, in order to reduce its energy import bill. The report further stated that if India used green hydrogen for even half of its overall hydrogen requirements, the GHG emissions will decline by about 50 mln metric tonnes, making the country less dependent on imports. It further recommended that cost parity with grey hydrogen should be achieved and industries must be incentivised for the adoption of green H2 in the short term.
AMERICAS
Replacing coal – Hawaii’s Kapolei Energy Storage system – a gigantic battery on the island of Oahu – has begun commercial operations, Canary Media reported Wednesday citing the project’s owner, Houston-based Plus Power. The plant’s 185 MW of instantaneous discharge capacity, enabled by 158 Tesla Megabucks, matches what the state’s last coal plant, which was shut down in 2022, could inject into the grid, though the batteries react far more quickly. With 565 MWh of storage, the battery can’t directly replace the coal plant’s energy production though, but works with the island’s solar sector to fill that role.
Pollution prize – The Oregon Department of Environmental Quality (DEQ) and Department of Energy have drafted a Priority Climate Action Plan (PCAP) competing for $4.3 bln in available US EPA funding for states and jurisdictions seeking to reduce GHG emissions and air pollution, along with $300 mln allocated specifically for tribal related emissions mitigation initiatives, the agencies announced in a webinar on Thursday. Phase 1 of the grants will be deployed towards planning climate pollution reduction strategies, with Phase 2 awarded to implement priority actions. The Oregon agencies are coordinating a single grant application for the state based on EPA’s funding evaluation criteria in the state’s three highest emitting sectors: transportation, commercial and residential buildings, and waste and materials management. Comments on the PCAP are due Jan. 26 to ensure Oregon can meet EPA’s grant application Apr. 1 deadline.
Stop it all – Virginia lawmaker Mike Jones (D) has proposed on Wednesday a new House Bill 28 to halt approval of new natural gas or coal-fired power generation projects, pipelines, oil refineries, fossil fuel exploration, and import or export terminals used for fossil fuels. The bill seeks the moratorium on fossil fuel projects to take effect Jan. 1, 2025 and included the establishment of job training programmes and energy worker protections, transitional assistance for workers in the fossil fuel industry and affected communities, and environmental justice protections. The likelihood of success of the bill appears thin in a state where the Governor terminated the state’s participation in the RGGI carbon market at the end of last year.
Retiring fossils – The US Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) today announced $800,000 in federal funding Thursday for eight local government and non-profit organisations, representing communities that will each create a roadmap toward repurposing their existing energy assets such as coal, oil, and gas power facilities. The Capacity Building for Repurposing Energy Assets initiative will support communities to build technical capacity and development of a workforce to revitalise energy systems, address environmental impacts, and tackle retired energy assets. Projects include the retirement of coal plants, repurposing of coal mining sites for metals manufacturing, and development of green hydrogen infrastructure.
More trees – Ontario’s most agriculturally productive county also saw its local conservation authority celebrate the milestone of 1 mln trees planted since 2006 on Wednesday, CTV News London reported. Located in Huron County, Ontario, the Ausable Bayfield Conservation Authority’s (ABCA) tree planting programme averages between 35,000-70,000 trees planted each year. Ian Jean, forestry and land stewardship specialist at ABCA, noted that while forest cover is low because of agricultural development, it is increasing and sees more trees today than there were 50 years ago, as forests were first cleared by settlers around 1900.
Building carbon fees – Buildings in Metro Vancouver could face penalties of C$350 ($261) for every tonne of carbon pollution above a pre-determined emissions limit, according to a regulatory proposal endorsed Thursday by the Metro Vancouver Climate Action Committee. The plan will apply to residential and commercial buildings utilising natural gas with over 2,322 sq. m of floor space across the 21 municipalities located in the Greater Vancouver area. Planning staff will now pursue a second round of consultation. If approved, the administrative and carbon pricing fees would start in 2028 and only apply to a building’s emissions limit. A building’s GHG limits would exclude emissions from cooking, “which are minor compared to space and water heating”, as well as those from district energy systems, staff noted. Big buildings constitute 35% of Metro Vancouver’s emissions and are on the rise, having increased almost 10% since 2010, with the burning of gas for heating and hot water accounting for a quarter of the region’s emissions, Glacier Media reported.
VOLUNTARY
Helping hand – Barclays is establishing a new Energy Transition Group within its corporate and investment bank to provide strategic advice to clients on energy transition opportunities. The group, led by Global Head Mike Cormier, will consist of sector specialists from Barclays’ natural resources, power, and sustainable and impact investment banking teams. It aims to offer expertise in areas like hydrogen, energy transition finance, carbon capture, renewables, nature-based solutions, and renewable natural gas. Barclays said the initiative is part of its commitment to a net zero transition, aligning with its 2050 target and a goal to facilitate $1 trillion in sustainable and transition financing by 2030.
AND FINALLY…
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