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TOP STORIES
Verra inactivates methodology of large voluntary carbon project
Voluntary carbon standard Verra has inactivated the methodology used by the large Rimba Raya peat swamp forest project in Indonesia, though the activity may continue with its use until its next baseline reassessment.
Verra provides updated timeline on reform efforts
Verra provided stakeholders with updated information and timelines on a number of methodological, operational, and other aspects of its reform push in a webinar Wednesday, as the registry continues to seek a ‘new era’ following sustained criticism and controversy in the voluntary carbon market (VCM).
EMEA
Far-right win at EU elections could derail the bloc’s Green Deal -report
A broad far-right win at the upcoming EU elections could make it vastly more complicated to pass ambitious environmental and climate legislation needed to achieve the objectives of the European Green Deal, a think-tank has warned in a new report published on Wednesday.
EU power demand to see limited recovery this year, stronger from 2025 -analysts
Power demand across the EU is forecast to see a slow recovery in 2024, according to an outlook published by analysts on Wednesday, while a recovering economy and electrification will support consumption between 2025 and 2027.
Projects for sustainable aviation fuels mushrooming in the EU, but finance needed -NGO
The number of announced sustainable aviation fuel projects in the EU is on the rise, meaning the bloc could meet its target for green fuels, an NGO study revealed on Wednesday, but only if final investment decisions are taken.
EU car emissions reduction targets unachievable at current speed -auditors
The EU’s goal to stop manufacturing CO2-emitting cars by 2035 faces huge challenges, according to a report published on Wednesday.
UK govt criticised for not checking sustainability of subsidised biomass
The UK government is failing to show how it ensures that biomass power and heat generators adhere to sustainability requirements after receiving a total of more than £22 billion of support over 21 years, the National Audit Office (NAO) said on Wednesday.
UK MPs warned that carbon credit reporting lacks transparency
It is difficult to ensure that carbon credits truly represent carbon reduction or removal – and while they can bring societal and environmental benefits, some projects can harm the environment and indigenous communities, according to a briefing on carbon crediting for UK parliament members.
Euro Markets: EUAs get boost from higher gas prices, climb strongly amid early short-covering
European carbon prices extended their gains for a second day amid speculation over potential short-covering, as weekly position data showed investment funds continuing to rebuild their net short position, while energy prices moved higher as gas imports were seen declining.
AMERICAS
California ARB issues first offsets of 2024, more than two-thirds DEBs-tagged
California issued its first compliance-grade offsets of the year, with more than two-thirds of issued credits tagged with direct environmental benefits to the state (DEBs), while over 1.1 million credits saw their invalidation periods expire, according to data published by state regulator ARB on Wednesday.
Canadian VC raises $335 mln for third decarbonisation tech fund
A Toronto-based venture capital firm successfully raised $335 million in commitments towards its third fund investing in clean technology solutions.
US EPA greenlights carbon storage permits in Indiana
The US Environmental Protection Agency (EPA) granted permits on Wednesday for carbon sequestration wells in two Indiana counties, even as state lawmakers introduced legislation earlier this month requiring approval from local authorities for such projects.
Brazilian carbon credit developer receives $38 mln for forest restoration from national development bank
A Rio de Janeiro-based developer has received R$186.7 million ($37.8 mln) in financing from Brazil’s national development bank for forest restoration in the country’s Amazon and Atlantic Forest biomes, it announced Wednesday.
ASIA PACIFIC
China’s vast renewable build out could hit over-capacity -report
China’s vast renewable build out cannot continue forever at its current pace without the risk of over capacity, but it has the ability to shape the global energy transition. In 2023 alone the nation added 200 gigawatts of solar installation, compared to 87 GW in 2022.
Indian renewable energy firm to supply green ammonia to Japan in $5-bln partnership
An Indian renewable energy firm has entered into an agreement with a Japanese industrial group for the production of green ammonia in the Indian state of Odisha under a project involving over $5 billion worth of investments that the parties say will reduce emissions by 54 million tonnes of CO2e over the project lifetime.
Fijian, Australian First Nations groups sign on for Article 6 collaboration
An Australian carbon trade company has signed an agreement with a Fijian counterpart to work on credits aligned with Article 6.
Australia Market Roundup: Rio Tinto signs PPA for 1 GW solar farm in Gladstone, ACCU issuance plummets
Rio Tinto has signed a power purchase agreement to supply 1 GW of renewable electricity to power its smelters and refineries in Gladstone, Queensland, as issuance of Australian Carbon Credit Units (ACCUs) falls.
Indian developers team up with state government in mangrove restoration drive
Two project developers have partnered with an Indian state government forest department to plant mangroves, expecting to generate blue carbon credits.
INTERNATIONAL
Low-emissions sources set to make up almost half of electricity generation by 2026 -IEA
Low-emissions sources – including solar, wind, hydro, and nuclear power – are on track to make up almost half of global electricity generation by 2026 and appear to be pushing the power sector’s emissions into structural decline, the International Energy Agency (IEA) said on Wednesday.
Emerging compliance markets, reporting regimes making emitters “nervous” over lack of supply, panellists say
Large emitters are getting “nervous” as a result of the mounting compliance schemes and reporting requirements they are facing in 2024, likely to drive investment and participation in carbon markets, a conference heard Wednesday.
VOLUNTARY
INTERVIEW: Conservation NGO cuts out brokers in plan to develop and sell REDD carbon credits
A conservation NGO in Africa that is developing REDD avoided deforestation projects to help bolster finances, has cut out the middlemen from its business model and pledged that a minimum of 80% of carbon credit revenue will stay within the country, it told Carbon Pulse Wednesday.
Portuguese voluntary carbon law relaxes requirements on residual emissions, additionality
A Portuguese voluntary carbon market (VCM) law, which came into effect in early January, relaxes some of its prior stances on offsetting for residual emissions, as well as on sources of additionality, compared to a prior proposal published for public consultation.
Carbon removals platform buys 1,000 direct air capture units from Kenyan plant
A carbon removals platform has purchased around 1,000 direct air capture (DAC) credits from a facility based in Kenya, the firms announced Wednesday.
Korean non-profit to establish association for voluntary market engagement
A South Korean non-profit dedicated to sustainable development is planning to set up an association to facilitate the voluntary carbon market in the country.
SHIPPING
Fresh analysis points to limited 2024 impact of Red Sea diversions on EUA demand
Red Sea shipping disruptions will have a relatively modest impact on EUA demand, analysts said in a report published Wednesday, consistent with recent Carbon Pulse analysis, though the effect could be more pronounced next year when a higher proportion of shipping emissions face compliance.
BIODIVERSITY (FREE TO READ)
Lack of nature positive awareness could trigger ‘unintentional greenwashing’, expert says
‘Nature positive’ status is emerging as a central ESG target for many businesses worldwide, but they could face greenwashing risks unless they implement a number of best practices, a BP official said Wednesday.
UK updates biodiversity gain hierarchy to apply to all habitat types
The UK government has updated the order of preference for how developers handle biodiversity impacts so it applies to all habitat types, rather than only the most distinctive, an expert has said.
Corporate financial statements may have to tackle biodiversity, lawyer says
Company financial statements may have to include biodiversity issues as part of their sustainability coverage, following the publication of an opinion encouraging directors to address the environment, a UK lawyer has said.
COMMENT
No climate justice without carbon credits
Climate Action Reserve President Craig Ebert provides a response to what he calls “the misguided focus on low-quality credits and the elusive supply chain mitigation”.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
ClientEarth vs Shell – The legal briefing has been launched setting out the basis of ClientEarth’s claim against Shell’s Board of Directors, providing an overview of the context in which the claim was brought, the reasons why ClientEarth alleged that Shell’s Board had breached its legal duties, and the findings of the High Court of England and Wales. The briefing looks in turn at each of the Court’s core findings, and sets out why ClientEarth believes that the dismissal of the claim is a missed opportunity. The claim sought to hold Shell’s directors personally liable for failing to properly manage the material and foreseeable risks posed to the company by climate change. It was the first-ever such claim worldwide seeking to hold company directors liable for climate risk mismanagement.
Public acceptability – Support for phasing out combustion engine cars decreases when gasoline prices rise, particularly amid lower income and more liberal people, according to research looking at metropolitan areas in Italy and the US. This decline in public support for climate policy happens when it has a negative effect on economic growth as well – it is not driven by lower environmental concerns, the research, published in Nature, found. The researchers did not find any significant association between gasoline prices and support for renewable energy research funding, or emissions regulations, or requirements on companies to pay carbon taxes.
EMEA
Don’t hold your breath – The UK’s flagship nuclear plant Hinkley Point C in southwest England is beset with further delays and cost overruns, with the project now delayed until at least 2029 and the estimated cost now standing at £46 bln. The ballooning bill and overrun schedule announced by French state-owned operator and constructor EDF pressures the UK government to provide further financial support for the plant expected to power more than 5 mln UK homes. EDF cited difficulties in installing electromechanical systems and complex piping as the reasons for the delay, while it has also experienced lengthy delays on parallel projects in Finland and France using the same reactor technology. The latest scenario sees one of the two planned reactors becoming ready in 2028, a two-year hold-up on the company’s previous estimate, though it could be further delayed to 2031 in adverse conditions, EDF said. No time estimate was given for the second reactor. The initial budget was £18bn, with a scheduled completion date of 2025. Hinkley is the first in a generation of new nuclear reactors intended to provide baseload power to the UK in its green transition. (FT)
European Green Deal architect resigns – Diederik Samsom, the former leader of the Dutch Labour party PvdA, will step down from his role as the current head of cabinet to the European Commissioner Wopke Hoekstra, Hoekstra’s office confirmed today. Samsom took the lead in crafting the European Green Deal, a plan aiming to make Europe climate neutral by 2050. His move comes months before the EU elections, which may reshape the European Parliament in a more right-wing direction, and may lead other Commission officials to depart from their postings. (NL Times)
Guilty as charged – German asset manager DWS was recently visited by the public prosecutor’s office for the second time since May 2021, in relation to greenwashing allegations that counteract its sustainability agenda. The Jan. 16 visit involved around 50 investigators and the police, however a DWS spokeswoman said a search was averted by the firm voluntarily releasing documents that the public prosecutor had requested. Both the public prosecutor’s office and DWS confirmed that the visit aimed to clarify the facts surrounding the allegations. The raid comes against the backdrop of a pending legal case in the US that last September resulted in the Securities and Exchange Commission (SEC) fining DWS €19 mln over its US subsidiary’s failures around ESG investing. (CityWire)
Asking for views – At its meeting on Jan. 24, the Swiss Federal Council opened a consultation on its law on climate and innovation (LCl), which had been accepted in a popular vote last June. The consultation will close on May 1. The LCl enshrines Switzerland’s 2050 climate objectives into national law. The Swiss Federal Council will mainly consult on the incentive requirements relating to legislation for emissions reductions in buildings as well as innovative and environmentally friendly technologies, with the law due to come into force at the start of 2025.
Distant goal – Germany’s goal of installing 500,000 heat pumps by 2024 looks unlikely to be achieved due to a decrease in natural gas prices and a political dispute over heat pump mandates, Euractiv reports. Despite a successful year of sales in 2023, the industry believes that maintaining that pace will be challenging. Sales have been declining since June 2023, prompting concerns and a projected drop in sales for 2024. Without additional measures, the sales forecast for 2024 is estimated to be only 260,000 units. Germany’s building sector, considered a climate laggard, aims to install the heat pumps to address its projected CO2 overshoot by 2030.
Airline update – Budget airline easyJet agreed to buy engines from CFM for the 157 Airbus aircraft it has ordered as part of its fleet renewal and to increase sustainability. The more efficient new aircraft and engines are a core component of easyJet’s path to net zero carbon emissions, the airline said. The agreement “will provide important environmental benefits through a significant improvement in fuel efficiency and a reduction in noise,” said CEO Johan Lundgren. In 2022, easyJet announced a roadmap to net zero by 2050, with an interim carbon intensity reduction target of 35% by 2035. The airline also announced on Wednesday that it posted a loss in the most recent quarter, but passenger numbers were up, the Evening Standard reports.
Fast as you can – An accelerator programme focused exclusively on CDR startups has announced it is accepting applications for its next stage of funding. The Remove programme runs across two phases and takes place over the course of nine months. It offers companies in their early phases of development €50,000 in funding, coaching, and support. Remove also provides access to a network of around 350 community members n the European CDR ecosystem. Applications are open until March 1.
ASIA PACIFIC
More renewables – India-based developer Kosher Climate has registered a 220 MW wind project under the Global Carbon Council (GCC), the company made the announcement on social media platform LinkedIn. The project is developed by French energy corporation Engie and is located in the state of Tamil Nadu. According to Kosher, the project activity is expected to result in a reduction of 722,964 tonnes of CO2 emissions on average per year.
Funding sustainability – Keppel, a Singapore-based asset management firm, has launched a Sustainability-Linked Financing Framework, which it developed in collaboration with two leading local banks, DBS and United Overseas Bank (UOB), the firm announced Tuesday. The Framework developed will focus on three key areas such as reduction in the firm’s absolute Scope 1 and 2 carbon emissions by 50% compared to 2020 baseline by 2030; secondly, growing Keppel’s portfolio of renewable energy assets, which will include both imports and projects under development; and lastly, maintaining a good rating of at least 95th percentile in the Singapore Governance and Transparency Index.
AMERICAS
LNG slowdown – The Biden administration is likely to unveil plans within days regarding increasing scrutiny towards applications to export natural gas, which could delay liquefied natural gas (LNG) projects for months, or even longer, Bloomberg reported. A slowdown in approvals or other changes to the Department of Energy reviews of plans to widely export LNG risk disrupting the development of LNG terminals along the Gulf Coast as well as other US regions. However, climate activists have advocated for the halt in new LNG approvals, citing expansion of the industry will only drive higher emissions.
Reducing redundancy – House Bill 1955, which repeals 2019 rules that required Washington utilities to calculate and report GHG emissions of their fuel mix, has been passed to the Rules Committee following a hearing in the House Committee on Environment and Energy on Jan. 9. Sponsored by House representatives Stephanie Barnard (R) and co-sponsored by Beth Doglio (D), HB 1955 was filed following Washington’s Department of Commerce citing that the 2019 reporting requirements were redundant because more complete and stringent requirements had been enacted by the Legislature in 2021 as part of the state’s Climate Commitment Act.
Take the HEAT – New York Governor Kathy Hochul (D) notably included elements of the Home Energy Affordable Transition (HEAT) Act that would discourage natural gas hookups to new homes and cap energy bills for low- and middle-income New Yorkers in her state budget proposal, local media WAER reported. Advocates of the bill to combat climate change are encouraged and said the changes would help New York meet its goals to reduce reliance on fossil fuels to net zero by 2050, during a rally at the State Capitol on Tuesday.
Pelican protected – Governor of Wisconsin Tony Evers (D) announced that Pelican River Forest (PRF), the largest conservation effort in the state’s history, has secured funding despite Republican lawmakers blocking funding for the project. According to Wisconsin Public Radio, the Wisconsin Department of Natural Resources had been working with the environmental non-profit The Conservation Fund to set aside roughly 70,000 acres (28,330 ha) of land in Rhinelander, and the agency is moving forward to complete the easement with the national conservation organisation by the end of the week. The move overcomes a barrier imposed in Apr. 2023, when Republican lawmakers on the legislature’s budget-writing committee scrapped funding for a $15.5 mln conservation easement to help support the remaining 54,990 acres in PRF under the state’s land purchase programme. The project was subsequently cited in a lawsuit filed in Oct. 2023 by Evers and Wisconsin Attorney General Josh Kaul (D) against the Republican-controlled legislature, which argued it was blocking basic government functions. Evans detailed that the approval for the conservation easement for the remaining acres of PRF came in partnership with the federal government and The Conservation Fund. A large chunk of the funding comprises an $11 mln federal Forest Legacy Program grant through the Forest Service under the US Department of Agriculture.
Brazilian carbon farmers – The Brazilian Federal University of Pelotas (UFPel) alongside the Brazilian Ministry of Agriculture’s National Supply Company (CONAB) signed a partnership on Jan. 10 to launch a programme that will train family farmers to access carbon credit markets, local media DM Pelotas reported Wednesday. The programme anticipates 500 trainees throughout its three-year duration, one-third from CONAB and two-thirds from members of associations and cooperatives of family farmers. It is anticipated that the end of the programme will result in a defined carbon credit policy overseen by CONAB alongside trained civil servants and farmers.
Call for innovation – The British Columbia Centre for Innovation and Clean Energy opened applications for its 2024 call for innovation, which looks to award up to C$10 mln ($7.3 mln) for BC-based clean energy projects addressing ‘hard to decarbonise’ challenges across forestry, mining, marine, transportation, agriculture, and technology industries. Applications will be accepted until Feb. 29.
VOLUNTARY
Football first – Brazilian carbon credit project developer Moss and Spanish football team Osasuna announced a partnership Tuesday through which the team will measure all its administrative and sporting activities and offset them through conservation credits stemming from the Brazilian Amazon, reported Maquia do Esporte. The partners will also provide fans with the opportunity to purchase carbon credits to offset the carbon footprint of official club products and match tickets, which will be available on the official Osasuna app and website. Under the agreement, both parties will also develop events and lectures on the topic, making fans aware of the importance of sustainability. The club, currently at 11th place in the La Liga table, claimed that the agreement made it the first European club to support conservation of the Amazon, according to the report.
INVESTMENT
Driving into Brazil – General Motors on Wednesday announced an investment of 7 bln reals ($1.42 bln) for its operations in Brazil from 2024 to 2028 to modernise the automaker’s factories in the country with a focus on advancing sustainability, Correio Braziliense reported. As part of the investment, GM plans to launch six new vehicles this year, two of which are EVs with a new battery model with improved performance. The fund will also help develop technologies that advance vehicle safety.
SHIPPING
Setting a high bar – Global commodity trading giant Trafigura aims to have at least six zero-emission green ammonia-fuelled vessels in its fleet by 2030 to achieve a 25% reduction in the GHG intensity of its shipping operations, reports Offshore Energy. These six ships would account for about 18% of its currently owned fleet, though the objective relies heavily on the technical feasibility of implementing ammonia combustion engines in the maritime industry. Trafigura is co-sponsoring the development of ammonia marine engines in collaboration with MAN Energy Solutions, which aims to have a commercially available two-stroke ammonia engine as early as 2024, followed by a retrofit package for the gradual rebuild of existing maritime vessels by 2025.
AND FINALLY…
Ice ice maybe – UK startup Real Ice is developing technology to refreeze the melting Arctic ice, a critical issue in the climate crisis. Gaining approval from the UN, the company aims to restore the drastically reduced Arctic ice by refreezing and thickening it. The method involves pulling water up through bore holes in the ice and spraying it on top, allowing the ice to grow thicker by removing the insulating snow layer. But the initiative faces challenges in funding and time, seeking support through nature preservation investments and innovative ‘cooling credits’. (Sifted)
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