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TOP STORY

China officially relaunches CCER scheme, seeks qualified verifiers

China on Monday announced the relaunch of its national voluntary offset market with the completion of the first offset transaction on its newly built trading system.

ASIA PACIFIC

China to add cement and aluminium to national ETS this year -media

China is planning to expand its national emissions trading scheme to cover cement and electrolytic aluminium this year, though the government may only start with a simulation trading mechanism for the two industries, local media reported.

AU Market: Savanna burning ACCUs without indigenous co-benefits see premium slashed

The price for Australian Carbon Credit Units (ACCUs) sourced from Savanna Fire Management (SFM) projects that do not have indigenous co-benefits associated with them have taken a dive in the secondary market.

Retiring coal just five years early could cut two years of total emissions in the Philippines -report

Retiring coal-fired power in the Philippines just five years early could stop 290 million tonnes of CO2 from being released into the atmosphere, according to analysts, although the price would be high.

Indian investment firm to launch tree-planting offset fund worth at least $150 mln

An Indian impact investment firm has announced plans to launch an offset fund worth at least $150 million dedicated to carbon sequestration through tree-planting.

VOLUNTARY

Carbon ratings agency finds over-crediting in several ACR, Verra projects

A US-based carbon ratings agency has said that several ACR and Verra-certified projects have been over-credited, with one of the two ACR improved forest management (IFM) initiatives registered under the California regulator ARB protocol scoring the lowest possible rating due what it perceived as severe boundary manipulation.

VCM Report: High number of carbon credits retired, but large number old and near-worthless

Retirement of credits continued at a healthy pace last week to underline ongoing demand, although a large chunk of the credits were pre-2016 vintage, and some were from before 2010.

INTERVIEW: Carbon standard expects upcoming approval for Article 6 credit issuance from Singapore

A Colombia-based carbon standard expects to soon be granted approval from Singapore to issue Article 6-aligned credits that would help emitters in the country to meet their obligations under the national carbon tax.

Ocean removals firm secures $21.5 mln in Series A to expand carbon capture technology

A Californian ocean carbon startup has announced a significant expansion of its Series A funding round securing an additional $21.5 million, earmarked for the commercialisation of its nascent carbon capture technology.

UAE firms partner to facilitate regional corporate carbon credit buying

A financial institution in the MENA region has inked a Memorandum of Understanding (MoU) with a UAE-based fintech firm to help its clients integrate carbon credit buying directly into their corporate accounts.

Japanese giant eyes biogas CCS credits through Scandinavian investment

A Japanese trading house plans to start earning credits from carbon capture and storage (CCS) work from next year via a new partnership with a Norwegian company.

Ink dries on $1 bln MoU between credit developer and Ghana’s Jospong Group

A Ghana-based diversified holdings company has signed a Memorandum of Understanding (MoU) with a carbon credit developer for technical assistance in the mobilisation of $1 billion in carbon credit financing.

AMERICAS

Exxon sues activist group to block emissions-cutting shareholder resolution

ExxonMobil has filed a lawsuit against international climate activist group Follow This to block a proposal from going to a shareholder vote that is calling for sharper cuts to the company’s carbon emissions.

RGGI Market: RGAs regain record prices amid market bullishness

RGGI allowances (RGAs) bounced back over the week, notching an all-time record settlement and high volumes late in the week, with market participants telling Carbon Pulse that a general sense of bullishness persisted in light of the ongoing Third Program Review and other structural factors of the scheme.

Virginia lawmakers call for budget amendments to rejoin RGGI

Democratic legislators in Virginia introduced budget language to return the state to the Regional Greenhouse Gas Initiative (RGGI) after its departure from the carbon market beginning this year.

LCFS Market: California and Washington credit prices dip below $60 for the first time

California Low Carbon Fuel Standard (LCFS) credit values saw a brief dip below $60 in recent days as the market awaits an update to programme rulemaking, while Washington Clean Fuel Standard (WCFS) credit values saw a much more dramatic decline.

Oregon’s Climate Protection Program scrapped, will undergo new rulemaking

The US state’s market-based GHG reduction programme is no longer in effect and will pursue new rulemaking following a December opinion decision by the Oregon Court of Appeals, government officials confirmed Monday.

Indiana legislator introduces bill requiring approval for CO2 transport within counties

A Republican lawmaker in Indiana earlier this month proposed legislation mandating carbon dioxide sequestration projects, which transport CO2 across counties, to obtain approvals from authorities in the destination county.

EMEA

World’s first large-scale green steel project receives €4.75 bln in new funding

H2 Green Steel has raised €4.75 billion in new funding to build the world’s first large-scale green steel project in the northern Swedish town of Boden, the company announced on Monday.

Carbon removal companies call for technology neutrality as certification framework enters final talks

A group of carbon removal stakeholders is calling on EU institutions to ensure technology neutrality in the EU’s carbon removal bill, as it approaches the final crunch time of the EU legislative process, ahead of Tuesday’s talks between the European Parliament, European Commission, and Council of EU states.

Economic analysis calls for £26-bln boost to annual UK spend on climate and nature

A report has called for the UK to increase annual public investment for climate and nature measures by £26 billion to raise overall economic growth.

EU co-legislators leave net zero industry act unfinished

Legislators in the European Commission, European Parliament, and the Council of member states will need more time to discuss a bill designed to strengthen net zero technologies in EU manufacturing, a spokesperson said after they concluded a halfway meeting on Monday.

Green steel sector hindered by EU ETS prices -report

Some aspects of the EU ETS are responsible for the scarce success of steel production that uses low-carbon technologies, according to a report published on Monday.

Euro Markets: EUAs settle at 18-month low despite afternoon recovery

Front-December European carbon futures fell to their lowest settlement price in 18 months despite a strong rally that saw prices claw back €2 in the afternoon, with buyers said to be little in evidence and hedging demand almost non-existent as clean spreads remained negative, while energy markets also trimmed early losses.

BIODIVERSITY (FREE TO READ)

UK companies urge government to mandate TNFD reporting

The UK government must take immediate action to support and steer companies in adopting the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations, a membership organisation comprised of some major corporates and NGOs in the country has said.

PREVIEW: Bern conference seeks to boost cooperation on global biodiversity targets

New recommendations on how to enhance cooperation between biodiversity-related conventions are expected at the Bern III Conference, which will take place over Jan. 23-25, in a bid to boost the implementation of the Kunming-Montreal Global Biodiversity Framework (GBF).

COMMENT

Out with the bad, in with the good carbon market

The voluntary carbon market faced strong headwinds in 2023 – a reckoning due to carbon credit quality problems. The silver lining that could arrive in 2024: A market correction that can support a new VCM 2.0, rebuilding a market that is good for the planet and for people, writes Donna Lee of Calyx Global.

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Job listings this week

• *Forestry Carbon Project Developer, Hutan Synergy – Jakarta/Bangkok/Singapore
• *Legal Counsel, Verra – Remote (US)
• *Manager, Integrated Marketing, Verra – Remote (Worldwide, with significant overlap with US business hours)
• *Senior Program Officer, Carbon Market Infrastructure, Verra – Remote (Worldwide)
• Senior Sales Trader UK ETS, ACT Group – London
• Carbon Programs Officer, CO2 Australia – Brisbane
• Carbon Broker, Carbon Market Solutions – Auckland/Wellington/Christchurch
• Carbon Project Lead, Afforestation & Solar Projects, East Carbon Consultancy – Fujairah, UAE
• General Counsel, Chestnut Carbon – New York City
• Forest Carbon Manager, Appalachian Carbon Exchange – Tennessee
• Forest Carbon Modeling Lead, Pachama – Remote
• Strategy Development, Reporting and Planning, Conservation International – Various Locations
• Data Manager, Conservation International – Various Locations

*Premium listings

Or click here to see all listings

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Fake news – The story highlighted in the Jan. 19 edition of CP Daily about WEF- and IMP-backed tokenised carbon credits issued by Canadian blockchain technology company Blockstream, as reported by the Bitcoin Bugle, is not genuine news.  It has since come to our attention that this website publishes fake news relating to bitcoin. We apologise for the miscommunication.

INTERNATIONAL

Carbon removal funding – The Carbon Technology Research Foundation is inviting applications for funding into new methods of carbon sequestration that are based in nature but can be scaled up using biotechnology, according to FundsforNGOs. The foundation is looking for projects targeting GHG removal from the atmosphere, into both terrestrial and ocean systems. It plans to invest in cutting-edge research on the use of biotechnology to provide enhanced, scalable solutions to removals, with a focus on CO2.

Canal climate conundrum – Increasing avoidance of the Suez and Panama Canals are leading to an increased impact on climate in terms of emissions output that, although marginally, could lead to further increases in shipping emissions, Time reported Friday. Shipping through the Suez Canal, linking Europe to Asia, has also come to a near standstill as Houthi militants in Yemen escalate attacks on Red Sea cargo ships, which has forced shippers to use alternate routes that are longer, and therefore result in higher emissions. Overall, Jacob Armstrong, the shipping policy manager for the Brussels-based sustainable transport advocacy organization Transport & Environment, calculated that this results in an extra 162,727 t of emissions for every day that the conflict continues. In January, experts told Carbon Pulse that this is unlikely to significantly impact EUA demand from the shipping sector in 2024 due to its gradual phasing into the EU ETS. On the other side of the world, at the Panama Canal, several seasons of little-to-no rainfall have lowered the water levels, and as a result, boats passing through the canal have had to reduce their cargo loads by 40% in order to reduce draft. This translates into diversions, delays, and additional CO2 emissions, especially if shippers turn instead to diesel powered trains and trucks to transport goods overland. Although the overall emissions impact of choked traffic on both the Suez and Panama canals is marginal, that calculus could change should continued delays drive a greater demand for speed, according to Armstrong. “Shipping speed, not distance, is actually the biggest threat for climate impacts. If a ship speeds up, it’s not like emissions go up relative to the increase. The relationship is cubic, so it’s a lot more,” he said.

Opposing reality – Governments have failed to agree on a timeline for the publication of highly influential scientific reports assessing the state of climate change by the United Nations’ Intergovernmental Panel on Climate Change (IPCC), Climate Home News reported. According to sources present at the IPCC talks in Turkey last week, the disagreement occurred after Saudi Arabia, India, and China opposed attempts to ensure that the agency would provide its assessment in time for the next global stocktake due in 2028. Following “fraught” discussions that extended throughout Friday night, governments postponed a final decision on the timeline until the next meeting scheduled in the summer.

EMEA

Mayor issue – Mayors in the north of England are calling on the UK government to drop a parliamentary bill that is designed to encourage more license applications for extracting oil and gas in the North Sea, the Independent reports. They say it won’t achieve the government’s stated aims of improving energy security but will worsen climate change and undermine the UK’s international reputation while failing to lower household energy bills. “For the sake of our economy – and our planet – I urge the government to reconsider its proposal,” said Steve Rotheram, mayor of Liverpool.

Roll out the reactors – Estonia is planning to build a small modular reactor (SMR) to reduce its reliance on polluting oil shale and achieve its goal of generating 100% decarbonized electricity by 2030, Euractiv reports. The Nuclear Energy Working Group, established by Estonia’s Environment Ministry, has published a report supporting the feasibility of constructing an SMR to meet the country’s decarbonization objectives, with the government set to use the report as the basis of its decision making for the potential use of nuclear energy. Currently, Estonia depends heavily on oil shale for energy, which is a highly polluting fossil fuel and a significant contributor to GHG emissions. By diversifying its energy mix and incorporating nuclear power, Estonia aims to achieve climate neutrality by 2050 in alignment with EU targets. The vote on the potential deployment of nuclear power is expected to take place in 1Q 2024.

River carbon – The Ruki is a major contributor of dissolved carbon to the Congo River, with most of the carbon coming from the leaching of forest vegetation and soils, a recent study by biogeochemists has found. It suggests that calculations made about the accumulation of carbon in tropical forests could be overestimated given that rivers are such major conduits of carbon from land to ocean and atmosphere. The Ruki River lies at the centre of the Congo Basin and drains 188,800 km of pristine lowland and swamp forests. The Ruki supplies 20% of the dissolved carbon in the Congo River due to its high concentration of dissolved organic matter, though makes up only 5% of the Congo’s watershed by area, the scientists found as reported by The Conversation.

UK’s decline – The UK has weakened in environmental rules in key policy areas, from chemicals to climate, since Brexit – much to the disappointment of EU lawmakers, the Guardian reported. The Guardian’s analysis found that the EU has done more than the UK to ban harmful pesticides and substances, tax carbon emissions on imported goods, regulate batteries, and clean the air. One Green MEP called the findings “tragic”, while a centre-right MEP said the divergences were “particularly bad” for companies operating on both sides. The UK’s and EU’s environmental policies are expected to grow further apart as the EU brings in new rules.

Money, money, money – Abu Dhabi National Oil Co. is lining up $23 bln to spend on low-carbon projects — up from a previous budget of $15 bln that ADNOC pledged for such investments through 2030 when it first announced the plan a year ago. The company is developing carbon capture projects at its natural gas plants in addition to a trading desk for credits to offset emissions. That compares to its spending of $150 bln over five years to expand hydrocarbon production capacity and to bolster its global presence by building up international gas and chemicals businesses, even as the world moves away from fossil fuel use. (WorldOil)

ASIA PACIFIC

Cash for cows  – Australia has released grant guidelines for the next funding round of its Methane Emissions Reduction in Livestock programme. Some A$9 mln ($5.9 mln) in funding is available, with A$1-3 mln available per project, to support development of methane reducing solutions for grazing livestock. The government noted that around 95% of Australia’s beef cattle, dairy cows, and sheep graze over large areas and have limited contact with farmers. This presents challenges for the uptake of methane-reducing solutions such as feed supplements. The cash offered aims to address this by supporting the development of cost-effective feed supplement delivery technologies and other solutions. The grant opportunity opens on Feb. 7 and closes Mar. 20.

Small but mighty – Papua New Guinea (PNG) Trade and Investment Minister Richard Maru has said that the country needs to better attract climate funding by working with bilateral and multilateral partners given its vast forest reserves and significant development needs. Speaking at the World Economic Forum in Davos last week, Maru said that PNG “has been hearing about carbon credits for the last 15-20 years but we have never benefited from any of it”. He pointed out that PNG has the world’s third-largest rainforest and 7% of global biodiversity and should capitalise on these natural resources by feeding into the carbon markets.

AMERICAS

NYCI webinars – The New York Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) will host a series of webinars this week to gather feedback on the economy-wide cap-and-trade programme under development in the state, dubbed NYCI. The Tuesday, Wednesday, and Friday events will cover the role of cap-and-invest, an overview of the pre-proposal outline, and an overview of the preliminary analysis, respectively. DEC and NYSERDA released a preliminary NYCI outline in late December, and full draft regulations are expected to be released later this year with an anticipated launch in 2025. A formal regulatory process will begin after the webinars.

Farming for CO2 – The largest cooperative of organic farmers in the US, Organic Valley, announced Monday that the first agreements and payments have been provided to its organic farmers participating in the organisation’s Carbon Insetting Program. The programme offers a market price per tonne of third-party verified carbon reduction, alongside technical assistance to plan and design projects as well as sourcing of funds to ensure monitoring and verification. On-farm projects include tree planting in actively grazed pastures, renewably energy installations, and enteric-reducing feed supplements to reduce methane emissions. The firm stated that the efforts build on research published by the University of Wisconsin-Madison, which found the cooperative’s average on-farm milk emissions to be some of the lowest in the nation.

SCIENCE & TECH

Reporting – New York-based tech company Novata announced last week the launch of Novata Carbon Navigator, a tool to support firms with carbon data management and reporting. The Carbon Navigator allows users to calculate Scope 1-3 emissions, track company data such as a firm’s energy consumption, and upload company expenses to calculate emissions, among other tools to support firms with carbon and ESG data management.

CO2 cement – Canada-based carbon capture firm Carbon Upcycling was named to the Global Cleantech 100, a list compiled by the Cleantech Group out of over 25,000 nominated companies. The company’s technology upcycles waste materials from other industrial practices alongside captured CO2 to abate cement. The firm currently has commercial-scale technology operating in Western Canada, with two more deployments in commission at cement plants in Eastern Canada and the UK. In July 2023, it announced a $26 mln Series A fundraise led by investors Climate Investment and BDC Capital’s Climate Tech Fund to deploy commercial projects at cement plants.

AND FINALLY…

Climate change causes cancer – A recent study conducted by professors at Norwich University found that the rise in sea level and events of flooding and extreme weather, all of which are the results of climate crisis, are increasing the risk of cancer in Bangladesh, The Guardian reported. As per the research, the heating will accelerate the release of arsenic into the drinking wells of the country, which is already inflicted with cases of skin, bladder, and lung cancers as a result of arsenic poisoning. Bangladesh consists of naturally occurring arsenic in its water supply, which wasn’t dangerous when water was abundant as oxygen in the atmosphere made arsenic insoluble and removed it from the water, the study said. However, when the water supply became scarce and people resorted to deep wells or tube wells for drinking water, it lead to a public health crisis in the country. The researchers added that wells in about 49% of the areas contained drinking water that exceeded the maximum WHO limit of 10 parts per billion of arsenic concentration.

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