Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here

TOP STORY

VCM Outlook 2024: Voluntary carbon aims to bounce back with integrity drive

Voluntary carbon stakeholders have expressed an optimistic outlook for the market over the next 12 months, with robust year-end credit retirements, a swathe of imminent developments aiming to boost integrity, and expected price support from the UN’s CORSIA aviation offsetting scheme, all cited as reasons for why the VCM will be able to move forward after a bumpy 2023.

VOLUNTARY

Verra details initial outline of revamped rice farming carbon offset methodology in wake of controversy

Verra provided early-stage details and a preliminary outline of a new Verified Carbon Standard (VCS) methodology for reducing emissions from the cultivation of rice in a webinar Tuesday, as the international standard seeks to replace a formerly popular but now discredited Clean Development Mechanism (CDM) methodology that prompted integrity concerns last year.

Crashing carbon credit prices leaves high-rated projects commanding hefty premium, says report

A sharp drop in carbon credit prices last year has left the top ranked projects by ratings agencies commanding a 200% premium on average over the lowest rated units, analysis has found.

Capturing CO2 from waste biomass could mitigate 3% of global GHG emissions -report

Converting organic matter, such as crop residues and livestock manure, into biomethane and biogenic CO2 using anaerobic digestion, could facilitate the capture of 3% of global greenhouse gas emissions, according to an academic study.

Davos 2024: Fintech initiative aims to attract $100 bln investment for carbon credits

An initiative announced by two carbon fintech firms at the World Economic Forum (WEF) summit in Davos aims to attract $100 billion in capital market investments into ‘high-integrity’ carbon credits to help address the multi-trillion dollar annual climate financing gap.

Oil major investors unite with activists in calling for stronger emissions targets

Investors in Shell have joined forces with an environmental activist group to call for more aggressive targets from the oil major in reducing carbon emissions to be set at its annual meeting, including accounting for Scope 3 output.

Commodity trader signs up for 1PointFive’s carbon removal credits

A large commodity trading firm said on Tuesday that it has agreed to buy carbon dioxide removal credits from 1PointFive, a carbon capture, utilisation, and sequestration company with an industrial-scale direct air capture (DAC) facility under construction in Texas.

ACR issues first credits targeting methane-leaking orphan oil and gas wells

ACR issued the first credits from its new protocol aimed at plugging abandoned oil and gas wells to an Oklahoma-based project developer.

More affordable path to direct air capture and storage charted by researchers in Nevada desert

A new study has found that off-grid direct air capture and storage (DACS) systems can significantly reduce carbon emissions when powered by renewable energy sources like solar and integrated with heat pumps and battery storage.

EMEA

EU lawmakers give final green light to F-gas 2050 phaseout bills, discuss transitioning consumer habits

Europeans lawmakers formally approved on Tuesday new rules to minimise emissions from powerful greenhouse gases, in particular to phase out fluorinated greenhouse gases (F-gases) by 2050, and debated a bill to empower consumers for the green transition.

Euro Markets: EUAs drop to settle at 16-month low as Monday’s buying fades while market eyes COT

Carbon allowances in the EU ETS settled at their lowest level in 16 months on Tuesday, giving up Monday’s gains amid steady selling as buyers appeared to retreat after Monday’s energetic showing and ahead of the weekly Commitment of Traders report, while energy prices weakened even as the market eyed rising tensions in the Red Sea that may impact LNG shipping.

FEATURE: UK lawmakers question UK BECCS plans on eve of approval

Several lawmakers belonging to the governing British Conservative Party have expressed concern over integration of carbon capture technology with a wood-burning power plant, as well as the possible deployment of hundreds of millions of pounds in subsidies towards the facility that underpins one of the world’s biggest removals projects.

AMERICAS

CFTC enforcement could chill voluntary carbon market, California AB 1305 takes effect amidst ambiguity -experts

Legal experts discussed the potential that enforcement action by the US Commodities Futures Trading Commission (CFTC) against carbon trading misconduct could place a damper on the voluntary carbon market (VCM), while the rollout of California’s climate disclosure bill is mired in ambiguity.

New Mexico lawmakers once again unveil clean transportation fuel legislation

New Mexico state representatives this month introduced legislation for a clean fuel standard that aims to mandate a reduction in transportation fuel carbon intensity (CI) beginning July 2026, following similar but unsuccessful previous attempts.

RGGI Market: Prices decline from record highs as weekly volumes recede

RGGI allowance (RGA) values dipped from all-time highs recorded during the week prior, as activity quieted ahead of the US long weekend.

ASIA PACIFIC

ANALYSIS: Barossa LNG court dismissal focusses attention on ACCU supply dynamics

Australian gas company Santos’ Barossa project is expected to have a significant impact on medium- term Australian Carbon Credit Units (ACCU) supply and demand dynamics, given that it will be unlikely to get its CCS element up and running until the late 2020s or the 2030s, according to analysts.

State-owned Taiwanese agricultural firm taps into carbon farming

A state-owned agricultural company in Taiwan has decided to tap into the carbon farming sector, as the government seeks to assess the potential of soil carbon across the island as part of a national climate strategy.

Speculators shed 2 mln NZUs as stockpile shrinks slightly

The stockpile of privately held NZUs has fallen by some 900,000 units as speculators decrease their holdings of units, according to government figures.

China’s property sector sees first offset standard for public buildings

A coalition led by the digital arm of a major real estate developer in China has released the country’s first emission reduction standard for public buildings.

Developer ties up with Indian state autonomous body on carbon projects

An Indian carbon offset project developer has signed a Memorandum of Understanding (MoU) with a state autonomous industrial body to develop mitigation projects across the South Asian country under domestic as well as international voluntary and compliance carbon markets.

More work needed to quantify Australian emissions reductions -audit

An auditing body within Australia’s government has found more work needs to be done to quantify the government’s work in reducing its emissions per the commitments it made in 2022.

Indian carbon offset developer, state-owned oil major team up to distribute clean cookstoves

India’s largest carbon offset developer, EKI Energy, has launched its first cookstove pilot project in partnership with a major government-owned oil firm, the developer said Tuesday.

INTERNATIONAL

Davos 2024: CEOs won’t change course on clean energy regardless of the US president -Kerry

COP28 created a “paradigm shift” for the global economy, setting in motion a low-carbon transition that will continue regardless of who wins the US elections this year, outgoing US climate envoy John Kerry said in Davos on Tuesday.

BIODIVERSITY (FREE TO READ)

Over 300 organisations commit to disclosing nature risks under TNFD

A cohort of 320 organisations with $4 trillion in market capitalisation have committed to begin adopting recommendations on nature-related financial disclosures within the next two years, in a sign of growing efforts to understand the financial risks posed by biodiversity loss.

Davos 2024: Amazon needs $2.5 billion a year for reforestation, Colombian president says

Some $2.5 billion per year is needed to revitalise deforested lands in the Amazon basin, the Colombian president has said, as his government prepares to host UN biodiversity talks later this year.

Bank calls for rapid scaling up of global biodiversity finance, tech deployment

The world needs better economic incentives and clear policy direction to ramp up biodiversity finance and deploy nature measurement technology at a scale not seen before, a major investment bank has said.

Lawyer: UK government advice on biodiversity gain hierarchy ‘misleading’

The UK government’s advice on the biodiversity net gain (BNG) has incorrectly suggested the order of preference for how developers handle nature impacts is mandatory, a lawyer has said.

OECMs could help Germany achieve big share of GBF target, report finds

Other effective area-based conservation measures (OECMs) could contribute up to 1 million hectares of land towards Germany’s Global Biodiversity Framework (GBF) target to protect 30% of its land and sea by 2030 (30×30), researchers have found.

Davos 2024: Nature-based marketplace launches award to combat biodiversity loss

A nature-based annual award worth CHF 100,000 ($116,100) will aim to scale a minimum of 100 nature-positive startups by 2030, World Economic Forum attendees heard Tuesday.

Biodiversity Pulse: Tuesday January 16, 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).

—————————————————

Premium job listings

• Senior Program Officer, Carbon Market Infrastructure, Verra – Remote (Worldwide)
• Director, Market Strategy & Engagement, Native – US (Remote)
• (Senior) Quantitative Carbon Market Analyst, Veyt – Oslo
• Feature Writer/Sub-Editor, Carbon Pulse – North America

Or click here to see all listings

—————————————————

BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

Tax the rich – Nearly 40 large companies in the fossil fuel industry and their funders made over $420 bln in ‘surplus’ profits in the 24 months before July 2023, according to a new ActionAid report. The report shows that taxing these extraordinary profits, referred to as windfall profits, could generate funds to boost public spending, especially for key areas such as education and climate action. Windfall profits are often attributed to external context changes and are considered a ‘surplus’ above the regular and expected profits. A tax of 90% on the windfall profits of these 36 firms could generate as much as $382 bln in revenue, shows the report launched as world leaders meet at Davos for the World Economic Forum. This amount is almost 20 times more than the $21 bln provided by donors for climate adaptation in 2021.

EMEA

Mounting debts – Energy companies are legally permitted to cut off gas supplies to steel company Acciaierie d’Italia (ADI), majority owned by multinational steel giant ArcelorMittal, due to the company’s mounting debts, an Italian court has ruled. ADI has been battling the rise in energy prices and drop in rolled steel coil prices, leading to it running out of cash and accumulating a huge debt pile with suppliers, including Eni, to which it owed €104 mln as of end-June 2023. ADI also has over €200 mln in outstanding payments to Italian gas grid operator Snam, which had asked the court to approve a halt to its gas supplies to ADI. The Italian government is trying to avoid ADI’s closure, as an employer of thousands and a key figure in the Italian manufacturing sector. The company has stated it would appeal the decision before the Council of State, a higher administrative court. (Reuters)

New nuclear – UK-based Newcleo and France’s NAAREA are joining up to accelerate the development of their fourth-generation nuclear technologies, known as advanced modular reactors (AMRs) and belonging to the wider family of small modular reactors (SMRs). These technologies have the benefit of using already used nuclear fuel from existing reactors and both companies already have projects in the pipeline. NAAREA is developing a molten salt-fast neutron nuclear micro-generator capable of producing 40 MW of electricity and 80 MW of heat, while Newcleo is developing two concepts for lead-cooled mini-fast reactors (30 MW and 200 MW), Euractiv reports. Both projects are scheduled to come online between 2026 and 2030, with the two companies hoping to benefit from the synergies emerging at European level around SMR development. The alliance will officially launch in February and will focus on the fuel cycle, the financing of fuel cycle infrastructure, research and industrial development, in addition to developing a common approach for nuclear safety at European level.

Wind build-out – Onshore wind power got a significant boost in Germany last year, when 745 new turbines with a capacity of more than 3.5 GW were installed in the country. Almost 50% more turbines were installed than during the previous year, bringing the country’s total onshore wind power capacity to 61 GW. Yet while auctioned volumes almost doubled in 2023 compared to the previous year, they still fell short of the earmarked auction volume of nearly 13 GW, said the German Wind Energy Federation (BWE). Some 4 GW of new turbine capacity is expected in 2024, provided that construction areas are secured in time, licensing goes smoothly, and turbine components are reliably sourced, Clean Energy Wire reports.

Climate bonus – Germany’s allocation of its so-called ‘climate bonus’ to citizens to help alleviate high CO2 costs must start at the latest in 2027, when the EU ETS II for transport and buildings comes into play, which is expected to lead to higher carbon prices for consumers. That timeline suggests the matter may be left to the country’s next government after the elections scheduled for 2025, Clean Energy Wire reports. In its coalition treaty, the German government agreed to “develop a compensation mechanism” called ‘Klimageld’ to compensate for rising carbon prices, with the two main issues being setting up a mechanism to distribute the money and ensuring that CO2 price revenues are available and not used for other climate measures.

ASIA PACIFIC

EV slug  – New Zealand electric vehicle and plug-in hybrid owners will no longer be exempt from government road user charges (RUCs) from Apr. 1, the government announced Tuesday. Transport Minister Simeon Brown said the move was part of the National, Act, NZ First coalition government’s commitment to bring all vehicles into the RUC system. He said the move was about “fairness and equity” to ensure all road users were contributing to the upkeep and maintenance of roads, regardless of the type of vehicle they chose to drive. Brown claimed the previous government planned to end the EV RUC exemption when EVs hit some 2% of the country’s light vehicle fleet, saying the country was now at that point. However, Christina Hood, chief analyst at Climate Compass found that EV users would be paying twice the amount of the like-for-like fuel efficient petrol car to drive the same distance, describing the move as “absurd”.

Buy local – Japanese developer Bywill will provide carbon credits to Hiroshima Bank, which on Tuesday launched a special bond in collaboration with local governments to help realise decarbonisation, following an agreement signed between the two companies in August last year, according to a company statement. The regional bank will purchase carbon credits within 0.20% of the issue amount of the private bonds, and offset GHG emissions from local art and cultural facilities, the statement said.

Oil’s well if it ends in well – Government-owned Oil India limited has made plans to capture CO2 released from its natural gas field in Jaisalmer, Rajasthan, and store it in dry well, company’s chairman Ranjit Rath told The Economic Times. Under the plan, the oil major will set up a gas sweetening plant, where carbon emissions will be stripped. Oil India has done some initial research and identified five wells for the project and will soon hire a consultant to prepare a feasibility report, who will also be responsible for selecting two of those wells for pilot. Rath added that this carbon sequestration project is one of the many initiatives that the oil company is planning to undertake to meet its net zero plan for 2040.

Wind in the desert – Mumbai-based Avaada Group has signed an MoU with the government of Gujarat to develop 6000 MW (6 GW) of hybrid wind-solar energy projects Gujarat. These projects will be based in the wastelands of Kutch district, famous for its salt marsh, in the Thar desert. Avaada plans to invest over $4.8 bln in the projects, which are expected to generate over 17 bln units of green electricity annually, leading to a reduction in CO2 emissions by 16.3 mln tonnes each year, The Economic Times reported. The initiative is also expected to power over 12 mln homes in the country. Currently, Avaada has 2 GW projects operational or under development, the newspaper added.

AMERICAS

Bayou brouhaha – Environmental groups are expressing strong opposition to the US Environmental Protection Agency’s (EPA) decision to transfer authority over carbon capture projects in Louisiana to the state government, according to Bloomberg Law. This decision, effective from Feb. 5, places the Louisiana Department of Natural Resources (DNR) in charge of reviewing 22 CCS project proposals, the largest number overseen by any state under EPA jurisdiction. A spokesperson for the DNR anticipates lawsuits as soon as the first permit is approved, expecting environmental groups to scrutinise their permit review processes and other procedural aspects, over expectations of minimal safeguards surrounding what they term a “carbon sequestration gold rush”. Louisiana is the third state since 2018, after North Dakota and Wyoming, to take over permitting programs for Class VI wells used for CO2 storage. States like Texas and Arizona are also seeking similar authority to expedite project reviews faster than the EPA. Louisiana’s potential for storage is significant, with its empty underground caverns capable of capturing up to 6 MtCO2 annually. However, opponents argue that carbon capture technology increases dependence on fossil fuels and poses risks to disadvantaged communities, such as pipeline fractures and large-scale CO2 emissions. Despite these concerns, the Louisiana DNR asserted that its programme exceeded EPA regulations in several ways, including banning sequestration in salt caverns and calling for the individual review of each well in project proposals.

State assets to offsets – A bill introduced to Washington legislature could see Washington’s Department of National Resources, in collaboration with other state agencies, assess state-owned assets with the potential to generate offset credits. HB 2333, sponsored by House Representatives Reeves (D), Walen (D), Springer (D), and Ramel (D), would assess offset credit potential under voluntary carbon market protocols, or others that the state might adopt in the future by rule. It would also prevent linkage with the California-Quebec joint carbon market until the assessment is complete. The bill was first read Jan. 12 and referred to the House Environment and Energy Committee.

The elephant in the room – Republican candidates are avoiding the topic of CO2 pipelines on the Iowa campaign trail, E&E News reported Tuesday. Both Florida Governor Ron DeSantis (R) and former US Ambassador to the UN Nikki Haley rallied for corn-based ethanol and criticised the EPA’s air and water regulations last week, but the issue of pipeline networks to transport CO2 emissions from ethanol plants has mostly been avoided by GOP contenders. CO2 pipeline proposals have also divided Democrats, particularly as politicians must decide whether to support the overarching mechanism of CCS as a climate solution, which many environmental justice advocates strongly oppose. The lull in political affirmation takes place as CO2 pipelines face intense regulator pushback in the Midwest, as project developer Navigator CO2 decided to terminate construction of its $3 bln, 2,100 km CO2 pipeline in Oct. 2023, while fellow project developer Summit Carbon Solutions sees its Midwest Carbon Express CO2 Pipeline come up against continued challenges to its permitting.

CA Senate – California’s Senate Environmental Quality Committee will hold a joint hearing on the topic of cap-and-trade rulemaking on Feb. 13, 2024. The informational hearing, hosted across the Budget and Fiscal Review, Environmental Quality, and Subcommittee No. 2 on Resources, Environmental Protection and Energy committees, will likely discuss financial aspects of the cap-and-trade rulemaking such as the disbursement of revenues, although no detailed agenda items are yet available.

VOLUNTARY

To till or not to till – US farmer-owned cooperative Truterra has expanded its 2024 carbon programme eligibility to include qualified long-term adopters of conservation practices that started before 2021, such as cover crops and no-till. Farmers can earn up to $30 per tonne of carbon stored, with a minimum of $2 per acre (0.4 ha) by implementing strip-till or no-till, as well as by planting cover crops in crop year 2024 or earlier. The carbon programme aims to help eligible farmers offset some of the technical and financial costs associated with the transition to conservation farming practices. Likewise, Truterra’s nitrogen management programme allows farmers to earn up to $5 per acre for reducing applied nitrogen by at least 20 pounds (9 kg) per acre and/or using an approved enhanced efficiency fertiliser on corn fields. Farmers in Illinois, Indiana, Ohio, and Tennessee who can provide three years of historic corn rotational data are eligible to enroll in the programme.

INVESTMENT

Natural gas merger – US natural gas produceres Chesapeake Energy and Southwestern Energy announced a $7.4 bln all-stock merger Thursday, which will create the largest independent natural gas producer in the US, Reuters reported. The new company, to take a new name upon close in Q2 of 2024, will see the former’s shareholders own 60% and the latter 40%. Combined, the portfolio would include a net production of 7.9 bln cubic feet (233 mln cubic metres) equivalent of natural gas, with 15 years of inventory and more than 5,000 locations. The merger takes place as the US hit record high liquefied natural gas exports in December and builds on last year’s acquisition by oil companies Chevron and ExxonMobil, which each bought Hess for $53 bln and Pioneer Natural Resources for $60 bln.

AND FINALLY…

Offsetting, on the rocks – A Greenland startup selling glacier ice to cocktail bars in the UAE will turn to carbon removals to compensate for its carbon footprint in an attempt to reach carbon neutrality, the Guardian reports. Arctic Ice harvests ice from Greenland fjords and ships it to the UAE to sell in exclusive bars, with claims that the ice melts slower than regular ice and is also formed of purer water complete without bubbles. Arctic Ice is the “cleanest H20 on Earth”, it claims, as it comes from ice sheets that have not been in contact with soils or contaminated by pollutants produced by human activities. Artic Ice has only recently dispatched its first 20 tonnes of ice and has faced a wave of criticism about its environmental conduct, which have taken the founders by surprise. The company argues that its ice is environmentally friendly and of social value, as it is transported on shipping containers that would otherwise have left Greenland empty and helps to reduce the threat of easily missable ”black ice” in Greenland fjords. “Helping Greenland in its green transition is actually what I believe I was brought into this world to do,” said co-founder Malik V Rasmussen. “We do have that agenda running through the company, but we may not have communicated it well enough yet.”

Got a tip?  How about some feedback?  Email us at news@carbon-pulse.com