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TOP STORY

POLL: Analysts slash 2024 EU carbon price forecasts by 20% on weak demand, supply boost

Analysts have significantly reduced their outlook for EU carbon prices this year due to a number of short-term bearish factors related to both supply and demand, including macroeconomic uncertainty, weak power consumption fundamentals, and ample allowance supply due to auctions linked to the bloc’s REPowerEU energy independence policy.

EMEA

EU’s post-2030 climate action must cut across all policy areas -report

The EU needs to mainstream climate action across its policy landscape post-2030 in order to reach net zero emissions by 2050, with strengthened efforts to electrify industry, support low-income and rural households, and raise public funding, according to a report released on Wednesday.

North Macedonia, Serbia face challenges in aligning climate goals with EU -report

North Macedonia and Serbia face challenges as they work on aligning their climate and energy goals with those of the EU, with the aim of eventually joining the bloc as members, according to a report published on Tuesday.

EU ministers discuss agriculture protections, not emissions reductions

EU agriculture ministers called on Tuesday for greater measures to protect the agricultural sector, which is battling a number of challenges, but omitted any specific mention of how to tackle the related emissions.

EIB registers record spending for climate and sustainability

The European Investment Bank (EIB) generated more finance towards green projects last year than ever before, thanks to new contracts for climate action and environmental sustainability, according to data published Tuesday.

EUA price declines likely to be temporary as bloc prepares to price carbon content of imports -analysts

Declines in the European price of carbon below current levels are likely to be temporary as the EU ramps up preparations to impose a cost of emissions on imported products from 2026, according to analysts.

Euro Markets: EUAs end higher after fluctuating in line with gas as market digests price outlook

European carbon prices posted a moderate gain on Tuesday after prices fluctuated in a more than €2 range tracking volatile gas prices, while traders digested fresh analyst forecasts calling for 2024 average prices slightly above current levels.

From trees to fields: Study reveals diverse post-deforestation land-use changes across Africa

Scientists have mapped the diverse land uses following deforestation across Africa, revealing significant regional variations in the causes of forest loss.

Partnership crowdfunds for nature-based solutions, women’s empowerment in Malawi

An international development company with a carbon and nature focus has launched its first crowdfunding equity raise campaign in support of a nature-based solutions (NBS) project in Malawi, aiming to generate nature-based carbon credits as well as units linked to women’s empowerment.

AMERICAS

Canada adjusts prices for alternative compliance mechanisms under clean fuels regulation

The Environment and Climate Change Canada’s (ECCC) Low Carbon Fuels Division has announced the Emission Reduction Funding Program (ERFP) and Credit Clearance Mechanism (CCM) prices for the 2023 compliance period.

Canadian watchdog estimates C$1 bln impact from removing federal “tax on a tax”

The removal of the federal goods and services tax (GST) typically applied to Canadian carbon pricing would reduce federal revenues by C$1.0 billion ($741 million) in 2030-31, Canada’s government budget watchdog reported on Tuesday.

US CCS startups partner to build DAC plant in Oklahoma

A Tulsa-based technology startup announced Tuesday an agreement to join efforts with a Texas-based carbon, capture, and storage (CCS) firm to develop a direct air capture (DAC) plant on the outskirts of a CO2 storage hub in Oklahoma.

European duo sign MOU on building CCUS presence in North America

An industrial multinational announced Tuesday a partnership with a European firm specialising in carbon capture technology to tap opportunities in the North American market.

ASIA PACIFIC

Major Asian banks lack coal exclusion policy, continue to finance polluting projects -report

Most leading banks in the Asian continent still include coal in their investment portfolios and continue to make investments in “climate destruction”, according to a report released Tuesday.

India seeks to align domestic carbon market with EU ETS -media

India is planning to ask the EU for measures to help align its upcoming domestic carbon market with that of the EU emissions trading system at the trade negotiations scheduled for next month, Bloomberg reported Tuesday, citing anonymous sources.

Australian resources company’s PNG REDD+ permits revived

An Australian resources company is closer to getting its Papua New Guinea REDD+ project back on track after a local court revoked its permit cancellations.

Australia-funded initiative to drive carbon credit finance for Vietnamese rice farmers

A project funded by the Australian government is eyeing carbon credit revenue from cutting greenhouse gas emissions from rice production across three Vietnamese provinces.

INTERNATIONAL

Shell veteran becomes CEO of large ESG solutions player

A Shell veteran has been appointed chief executive of a global environmental solutions service provider that saw revenues of almost $6 billion last year.

VOLUNTARY

Prices jump for nature restoration carbon credits amid healthy trade -analysts

Nature restoration credits are bouncing higher to buck the trend of the general slide in voluntary carbon market prices, a webinar heard Tuesday.

INTERVIEW: Sea kelp venture advances science on carbon sequestration, produces agricultural biostimulant

A venture cultivating sea kelp in the waters off Namibia is making headway on proving the carbon sequestration benefits, while harvesting the kelp to produce biostimulant for farmer’s fields.

INTERVIEW: Family forest carbon organisers promote dynamic baseline methodology for the VCM

The partners behind a US forest carbon crediting programme highlighted their project’s use of dynamic baselines in an academic article and interview with Carbon Pulse on Tuesday, hoping to boost environmental integrity in the voluntary carbon market (VCM), with first issuance expected soon.

Cookstove study identifying “pervasive over-crediting” passes peer review

After passing peer review, a journal version of an academic pre-print study that said it found over-crediting in cookstove offset projects last year has renewed its criticism of over-estimation of issuances in the same project methodologies, but by a much higher factor.

Researchers detail recommendations for cookstove offset developers, buyers amid over-crediting controversy

Researchers from a US academic institution have detailed recommendations for developers and buyers of such projects to help ensure quality in the voluntary carbon market (VCM) following their publication Tuesday morning a paper finding over-crediting in cookstove offset projects to be prevalent at a much higher level than previously thought.

BIODIVERSITY (FREE TO READ)

SBTN pilot reveals benefits, challenges of targeting nature

The Science-based Targets Network (SBTN) released a report on Monday highlighting the benefits and challenges experienced by the first cohort of companies when piloting targets for nature.

Landbanking Group releases consultation paper on new nature asset class

German-based tech startup Landbanking Group has released a consultation paper ahead of a planned launch of a new nature asset class in a bid to foster investments in ecosystem preservation, restoration, and improvement.

Key Biodiversity Area criteria must be robust to meet global targets, study shows

Robust criteria must be applied to identify areas of importance for biodiversity under the Kunming-Montreal Global Biodiversity Framework (GBF), as the lack of a clear definition could undermine nature recovery efforts, a study has warned.

Palau sparks marine protection optimism with high seas treaty ratification

The Pacific Island nation of Palau has ratified the UN’s Biodiversity Beyond National Jurisdictions (BBNJ) treaty, sparking optimism that sufficient momentum can build for the treaty to enter into force, making it possible for the global community to protect vast tracts of the world’s oceans.

Biodiversity Pulse: Tuesday January 23, 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

INTERNATIONAL

Teaming up – The US Forest Service and Indonesia’s environment and forestry ministry on Tuesday signed an MoU to cooperate on the implementation of Indonesia’s Net Sink 2030 plan, which stipulates that the country shall no longer contribute to GHG emissions from deforestation by that year. The two will work collaboratively on sustainable forest management, forest carbon governance, forest and land fire control, as well as education and training, they announced. The MoU is expected to pave the way for more robust and effective forest management practices in Indonesia, contributing to global efforts to mitigate climate change and enhance biodiversity conservation, they said.

Back-up plan – Carbon insurance company Kita, a Lloyd’s of London coverholder, has expanded its operations to Switzerland and Singapore. The expansion is part of the company’s global growth strategy, with plans to add more jurisdictions in the future. Kita offers customised carbon insurance products to reduce risk in carbon transactions, allowing carbon projects to attract more consistent capital and accelerate their impact.

VOLUNTARY

Ongoing debate – While the benefits of regenerative agriculture are not in doubt, questions remain about the carbon sequestration potential of soils, reports the FT, which explores food industry ventures to reduce Scope 3 emissions through engaging with farmers in their supply chain on regenerative agriculture practices. Such practices including tilling the soil less and planting cover crops are known to boost yield, increase water retention, and improve carbon sequestration, however “the carbon angle has been oversold”, said one farmer in southwest England. The industry’s lack of a clear definition of ‘regen ag’ and clear targets can make claims hard to substantiate, create investor risks, and delay progress, said one observer. Other flaws with soil carbon sequestration include its capacity, ability to accurately measure, and unknowns around permanence, the article notes.

Speak up or forever hold your peace – Verra is inviting comments from the public on whether projects seeking to register in one or more of its standards programmes meet the requirements of that programme, as noted here. The received comments will be published to the project record on the Verra registry and will be considered by the project proponent, in an effort to ensure transparency and rigour of Verra’s standards programmes. Projects open for public comment include REDD and cookstove projects.

Planting the seed – CO2 mineralisation in concrete company Concrete4Change has announced a £2.5 mln seed fund raise, with additional funding from the UK government, to scale its technology up from the laboratory to pilot projects with global construction firms Goldbeck and Siam Cement Group. C4C aims to mitigate 2 bln tonnes of CO2 by 2040 using its mineralisation technology, which is said to make concrete up to 20% stronger while also acting as a long-term scalable CO2 sink. The round was led by Zacua Ventures, an early-stage venture fund focused on the built environment and Counteract, a carbon removals focused venture fund, with participation from Goldbeck family office. This brings the total investment raised to date to £4.5 mln including £1.5 mln in grant funding, the release said.

Could do better – Rating agency BeZero has awarded a BB grade to a Cercarbono certified wastewater project in Colombia – GHG Emissions Reduction Certification of Aceites Manuelita S.A. (ID. 82) – giving the credits a moderately low chance of avoiding or removing a tonne of CO2 because of a risk of additionality “due to the potentially insignificant role of carbon finance in the project’s overall revenue stream and the cost savings available to the palm oil mill facility.” Meanwhile, the rating agency also reaffirmed the BB rating to a Verra certified power project in China because of additionality risks. The Nanchang Zhonglan Huanneng Technical Service Co. Ltd. Maiyuan LFG Power Generation Project (VCS 2358) faces “significant additionality risk given the likelihood that the project is viable without carbon finance,” the rating agency stated. “The rating is further constrained by the supportive policy environment in China, which may undermine the carbon effectiveness of these credits.”

Tool test – Verra has commenced the pilot testing phase of its new Digital Project Submission Tool in the Verra Project Hub, the firm announced Tuesday. Project proponents and validation/verification entities that are looking to digitally submit project documents in the Project Hub are invited to test the tool between now and Feb. 29, 2024, and offer feedback following the evaluation of the tool’s application and functionalities.Verra will implement the insights gained during the pilot phase to refine the tool to ensure that it streamlines the project submission process and reduces project review times, said the standard body, adding that it anticipates launching the final version of the tool in the first half of 2024. So far, project proponents applying select VCS, CDM, SD VISta, and Plastic Waste Reduction methodologies can test the tool.

EMEA

Bill upheaval – The UK government’s oil and gas bill currently going through the House of Commons is generating backlash among some MPs, with former COP26 President Alok Sharma saying that it won’t cut household bills or create jobs and will instead break the country’s promise to cut out fossil fuels, the Guardian reports. The offshore petroleum licensing bill passed its second reading on Monday night with 293 votes to 211 against and no Conservative MPs voting against it, while Sharma abstained. The legislation would oblige the North Sea Transition Authority to run annual applications for new offshore oil and gas licenses. The IPCC has said no new oil and gas licenses should be granted for the world to keep within the 1.5C limit. Sharma pointed to the private enterprise ownership of oil and gas reserves in the North Sea, with the government unable to control who they sell to, while he also stressed the importance of transitioning oil and gas jobs to green energy instead.

“Historic mistake” – Germany’s decision to phase out nuclear power has been criticised as a “historic mistake” by Fatih Birol, head of the International Energy Agency (IEA), who declared it to have negatively affected electricity availability and emissions reduction. The phaseout of nuclear power in Germany, completed in spring 2023, has been contentious, with some advocating for a return to nuclear energy to reduce emissions. However, proponents of the nuclear exit argue that it has accelerated the expansion of renewable energies in the country. Birol also criticises Germany and other countries for their emphasis on green hydrogen, stating that only a small percentage of global hydrogen projects will be completed by 2030 and that costs are high. (Clean Energy Wire)

Flood gates open – Germany’s Climate and Transformation Fund (CTF) has resumed funding for programs under the economy and climate action ministry (BMWK) after a temporary pause, initiated due to a decision by the German constitutional court that invoked the country’s limit on state debt. The fund is now open for applications for various climate protection projects, including industry decarbonisation, hydrogen strategy implementation, and heating decarbonisation. However, the ruling coalition has reduced the CTF’s funds by €12 bln in 2024 and a total of €45 bln until 2027 to control government spending. In Nov. 2023, Germany’s highest court declared a part of the government’s funding plan for climate and energy programs as unlawful, creating a €60 bln gap in the CTF. As a result, the government has introduced budget cuts, reshuffling, and higher taxes and levies to compensate for the gap, ensuring that key climate action measures will not be affected despite less available funding. (Clean Energy Wire)

Last in line – New analysis by the Regulatory Assistance Project (RAP) shows that, while consumers in around half of EU countries can already access cheaper prices for electricity at different times of the day and save money, benefits are out of reach for many low-income citizens. RAP suggests some solutions, like prioritising those households with home energy efficiency upgrades, designing low-risk and upside-only retail tariffs and offers to reward flexible energy use, and ensuring that households can combine social bill support with flexibility schemes. In 2022, some 9.3% of the EU population was unable to keep their houses sufficiently warm, up 2.4% from 2021.

Silver lining – The methane footprint of European gas imports has fallen significantly since the Russian invasion of Ukraine as Russian gas has been replaced with US and Qatari gas – both of which have a lower methane intensity, a new study by methane monitoring company Kayrros has found. However, the picture is made more nuanced by the fact that some European countries source their gas from high-methane-intensity providers while others mostly import ”cleaner” gas. The US now supplies 15% of European gas and Qatar 6.4%, the release said.

ASIA PACIFIC

Farewell, Prime Minister – After three years former Australian Prime Minister Malcolm Turnbull is leaving a clean energy offshoot of mining giant Fortescue. Turnbull’s time was a comparatively long one given other executive appointees have lasted only six months in some cases and only two in another. The Australian Financial Review reported Tuesday that Turnbull left Australian Fortescue Future Industries Jan. 11 and did not publicly give a reason for his departure. The ex-politician’s work apparently concentrated on building international collaboration via member organisations focussed on the development of green hydrogen. 

Seaborne trader emissions drop – Trader Trafigura said Tuesday it had reached its target of cutting Scopes 1 and 2 emissions by 30% compared to 2020. It plans to cut emissions by 50% by 2030. It said it had reduced the GHG intensity of its owned and chartered ships by 19% over the 2019 baseline. It has also expanded into renewable energy with 2.5 GW in the pipeline via its 50%-owned Nala Renewables. Target capacity is 4 GW by financial 2025. It is also working on renewable hydrogen projects in Wales and Denmark, with final investment decisions due soon. 

New joiners – Japan’s Tokyo Gas and Osaka Gas will participate in a joint study conducted by Masdar and INPEX to produce e-methane using cost-competitive renewable energy in UAE, according to a company statement. In the study, the four companies plan to evaluate the economic efficiency of raw materials such as green hydrogen and CO2, from procurement to production and transportation, and evaluate the CO2 emission reduction effect of e-methane production in Abu Dhabi. Tokyo Gas and Osaka Gas also aim to replace 1% of their respective annual city gas demand with e-methane by 2030, and to further expand the use of e-methane both at home and abroad by 2050, the statement said.

Count blue carbon in – Japan’s environment ministry has decided to include the carbon-sequestering ecosystems of seaweed and kelp in the national emissions calculations, making the country the first in the world to integrate blue carbon in carbon accounting, according to Nikkei. While the amount of carbon stored in Japan’s coastal zones is relatively modest, the carbon sequestration data will be included in a report to be submitted to the UN by April, the report said. The move has raised concerns among some observers as it may open the door to offset more fossil fuel use.

No false claims – The consumer affairs department under the Government of India is planning to issue guidelines within the next month, to prevent deceptive environmental claims made by firms in an effort of what is termed as “greenwashing”, The Times of India reported. According to the officials, the claims must be backed by verifiable evidence, which eventually must be disclosed to consumers. Under the proposed guidelines, the companies will be required to specify their manufacturing processes, packaging, manner or use/disposal or the process of rendering a service. Moreover, such claims must be supported by certification, scientific evidence and a third-party verification.

AMERICAS

WA utilities – House Bill 1589, which proposes a number of utility-focused decarbonisation measures and was first introduced to Washington Legislature in 2023, passed in the House of Representatives on a 52-45 vote Monday. The HB 1589 would prohibit expansion of natural gas services to commercial and residential locations and requires the state’s Utilities and Transportation Commission to conduct integrated systems planning for utilities to meet legal obligations outlined in state climate goals. It is now referred to the Senate Committee on Environment, Energy, and Technology.

Soil carbon – US-based agricultural carbon offset firm Agoro Carbon Alliance announced on Tuesday its achievement of enrolling 2 million acres (809,400 ha) in sustainable agriculture practices across 26 states. This is estimated to sequester over 7.5 mln short tons (6.8 mln t) of carbon over the contract periods. The firm previously reported its distribution of $6 mln to US farmers and ranchers in the second year of its carbon sequestration programme, a third less than was awarded in the programme’s inaugural year.

Carbon tax contagion – The Mexican state of San Luis Potosi has approved its first carbon tax, according to MexiCO2. The tax will come into effect in Apr. 2024 and will entail a cost of MX$325.71 ($18.80) per tonne of CO2e for direct and indirect emissions from stationary sources. It also provides that the state’s Ministry of Finance will have the power to create incentives that reduce the tax burden to create jobs, promote economic development, and encourage technological innovation and the use of renewable energies. The states of Colima and Tamaulipas are also working on the implementation of their own state carbon taxes, while Jalisco is also discussing a carbon tax. The other Mexican states currently with active carbon taxes are Zacatecas, Yucatan, Estado de Mexico, and Durango, while there is also a federal tax on emissions related the production, import, and commercialisation of fossil fuels intended for combustion processes.

Forest reinforcements – Brazil is moving ahead with the creation of a donor-funded new international security centre in Manaus that will bring together Amazon nations in policing the rainforest, sharing intelligence, and chasing criminals, reported Reuters on Tuesday. The Center for International Police Cooperation (CCPI) is scheduled to be up and running in Q1 2024 and will fight drug trafficking and the smuggling of timber, fish and exotic animals, as well as deforestation and other environmental crimes and illegal goldmining on the protected lands of Indigenous peoples. It will have police representatives from Brazil alongside the other seven countries of the Amazon Cooperation Treaty Organization (ACTO) – Bolivia, Colombia, Ecuador, Guyana, Peru, Suriname, and Venezuela. The CCPI is financed with R$9 mln ($1.8 mln) from the Amazon Fund, a multinational donation effort created by the Brazilian government.

AND FINALLY…

Moving to the night shift – Global warming is causing alpine ibex, a species of mountain goat, to adopt a more nocturnal lifestyle, potentially increasing their exposure to predators. Researchers from the University of Sassari observed that these normally diurnal animals were more active at night during hotter days. This shift was unexpectedly higher in areas with predators like wolves. The study suggests that avoiding heat stress may override the ibex’s instinct to evade predators. This change in behaviour could impact their feeding efficiency and population dynamics, and also necessitates new techniques for animal census activities, which are traditionally conducted during the day. (Guardian)

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