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TOP STORY

Just 8% of carbon credits to get early pass for CCP label, most methodologies too contentious to fast-track

Just 8% of carbon credits are to be fast-tracked for the ICVCM’s Core Carbon Principles (CCP) label, while almost half of the units in the voluntary market come from methodologies deemed too contentious to be immediately approved, the cross-stakeholder initiative announced Wednesday.

EMEA

EU needs to invest €40 tln by 2050 to reach green goals -report

The European Union needs to invest €40 trillion by 2050 in order to reach net zero emissions while remaining globally competitive in line with the bloc’s strategic autonomy agenda, according to a new report.

EU adopts harmonised rules for ETS free allocations, fails to amend cement benchmarks

The European Commission adopted new rules on Tuesday to harmonise the free allocation of emission allowances under the EU Emissions Trading System, although the cement sector remains mostly untouched.

EU risks missing 2030 emissions targets as national plans lack details -report

The EU risks missing its 2030 emissions reduction target as five countries have so far failed to set out adequate plans to develop their renewable power, hydrogen, land use, bioenergy, and CO2 storage within the next six years, according to a report released on Wednesday.

Russia considering carbon pricing from 2028 -media

The Russian Ministry of Economic Development is mulling the introduction of a carbon pricing system from 2028, according to multiple local media sources.

NGOs urge EU to propose fossil fuel phaseout dates in its 2040 emissions targets

NGOs have urged the EU to stay true to the agreement reached at COP28 last month and set clear fossil fuel phaseout dates as part of its forthcoming communication on 2040 emissions target, in a letter sent to the European Commission on Tuesday.

Amazon signs power purchase deal for offshore Scottish wind

Amazon has signed a corporate power purchase agreement with a European utility to raise its share of electricity coming from a Scottish offshore wind power farm, it announced on Tuesday.

EUAs at risk of extending decline but price seen as “good entry point” for compliance –analysts

EU carbon prices may extend current losses across the rest of 2024 but the current downturn presents a good entry point for sectors that are naturally short of allowances such as industrials, airlines, and shippers, while UKAs are currently a “bargain”, according to analysts from a bank.

Euro Markets: Afternoon gas-driven rally breaches key level, wipes out Monday’s losses

European carbon allowances broke out of a relatively narrow range on Tuesday afternoon and breached a recent key level as gas prices jumped, after the market had earlier appeared to be seeking renewed direction, while some short-positioned speculative traders were thought to be quietly covering some of their positions.

AMERICAS

Stakeholder coalition outlines blueprint to mobilise $25 bln+ in US funding for decarbonisation

A report from an industry-labour-NGO partnership released Tuesday recommended a slew of policies to the US government to mobilise over $25.4 billion of available funding plus tax credits to achieve industrial net zero emissions by mid-century.

US National Science Foundation awards up to $1.6 bln for energy, climate innovation

The US National Science Foundation (NSF) on Monday awarded 10 projects up to $1.6 billion in funding over the next decade, one of the single largest investments in region-based research and development in the nation’s history, in an effort to promote economic competitiveness through innovation in energy and climate.

Oregon outlines 2024 Clean Fuels Program rulemaking timeline, proposed changes

Oregon’s low carbon fuel programme, which regulates transportation fuel producers and importers in the state, looks to adjust its carbon intensity (CI) assessment model and verification of electricity transactions for credit generation, mostly in line with California’s LCFS scheme, staff detailed in a Tuesday workshop.

British Columbia’s old growth forests at risk of logging with inaccurate provincial accounting -report

The Western Canadian province relies on Old Growth Management Areas (OGMAs) as a method of accounting towards its commitment to protect 30% of lands by 2030, but an environmental non-profit reported Monday that BC’s OGMAs do not meet Canadian or international conservation standards, do not entirely contain old forest, and are at risk of logging.

Alberta municipality signs MoU for $600 mln synthetic fuel plant with CCS

A municipality in Alberta announced on Tuesday signing a memorandum of understanding (MoU) with a fuel producer to build a $600 million synthetic gasoline facility that would include carbon capture and sequestration (CCS) and hydrogen production.

Ontario invests over C$9 mln into 14 forest biomass projects

The Canadian province of Ontario announced Tuesday that it will pour C$9.4 mln ($7 mln) into 14 projects for research, innovation, and modernisation initiatives around the use of forest biomass, although one expert has criticised the programme for threatening local forest carbon stocks.

ASIA PACIFIC

Australia “hell-bent” on exporting fossil fuels, over-reliance on land sector to claim emission reductions -analysis

The Australian Labor government has failed to live up to its pledge to combat climate change more effectively than its predecessor, as it continues to overly rely on emissions cuts from the land sector to enable the expansion of exporting fossil fuel projects, according to analysis published Tuesday.

Japanese developer expands carbon business in Vietnam

A Japanese project developer has teamed up with a domestic partner in Vietnam to further expand its carbon credit generating business in Southeast Asia, with a rice-focused project in the pipeline.

Australia Market Roundup: More Hydrogen Hub funding announced, ACCU issuance up

Australia has committed another A$70 million ($46 mln) to develop a renewable hydrogen production centre as part of its Hydrogen Hub initiative, this time in Northern Queensland.

VOLUNTARY

Microsoft buys first carbon removal credits from regenerated grasslands

Microsoft has made its first purchase of carbon removal credits from grasslands, which will support ranchers in the US to implement regenerative land management practices to sequester additional soil carbon.

Global investor unveils nature-based voluntary carbon strategy, hires ICVCM board member

An international investment firm will focus on nature-based solutions and voluntary carbon credits, it said in a nature strategy published this week.

Carbon projects lack robust safeguards, market needs risk management tools -experts

Environmental and social safeguards are becoming increasingly crucial for project implementation, but the market requires better guidance to effectively integrate risk management into carbon projects, webinar attendees heard Tuesday.

Management platform raises $10 mln to help carbon project developers streamline operations, ditch spreadsheets

A software platform to aid project developers manage the lifecycle of carbon credits has raised $10 million across two funding rounds, which it will use to grow its team and capabilities.

Direct air capture company signs supply agreement to help build large US carbon removal facilities

A direct air capture (DAC) firm has teamed up with a Canadian climate technology provider to supply core equipment to build three of its projects in the US, as they aim to drive towards commercial scale for the nascent carbon removals type.

Californian startup raises $14 mln for large-scale nature-based carbon removals

A startup targeting large-scale nature regeneration through carbon projects has raised $14 million in Series A funding in a round co-led by a venture capital firm and a renewable energy company.

Singapore exchange connects with UAE platform in hunt for deeper, more liquid market

Singapore’s ACX Group on Tuesday announced it has connected its Singapore-based trading platform with the environmental instruments exchange it operates in Abu Dhabi’s alongside the ACX Clearing Corporation.

Top corporate carbon credit buyers opted for newer vintages in 2023 -analysts

The corporates that retired the largest volume of voluntary carbon credits last year generally preferred recent vintages, most paying an average of between $4-6 for the units, analysts said in a report published this week.

SHIPPING

FEATURE: Cruise industry sails to greener horizons, driven by carbon pricing pressure

The growth in carbon pricing mechanisms faced by the maritime sector will help to further incentivise the cruise industry to decarbonise its fleet, though doing so requires the scale-up of low-carbon fuels and port electrification, which are still at relatively low levels.

BIODIVERSITY (FREE TO READ)

INTERVIEW: SBTN delays first validation till mid-year, urges ambition amid broad interest from industry

The Science Based Targets Network (SBTN) will delay validating the programme’s first nature targets till July after initially planning their debut for Q1 of 2024, according to Executive Director Erin Billman, in the interest of supporting ambition among the 17 firms participating in the pilot phase.

Biodiversity indicators must be reviewed to avoid biased GBF monitoring, study warns

Indicators selected for the Kunming-Montreal Global Biodiversity Framework (GBF) should be regularly reviewed to ensure that contradictions are identified, and progress toward global conservation goals is not misrepresented, a study has recommended.

IIED calls for biodiversity loss and damage fund for developing countries

UK-based think tank International Institute for Environment and Development (IIED) has proposed a biodiversity loss and damage fund to address non-climate-related impacts on nature in developing countries.

2024 is the year of using location-based data to value biodiversity -investor

Investors will begin to use location-based data to more accurately identify the true value of biodiversity in their assets this year, the head of a green finance firm has said.

Biodiversity Pulse: Tuesday January 30, 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).

COMMENT

COMMENT: Six key questions the carbon market needs to resolve to deliver for nature – one year on

Twelve months ago, Respira’s Ed Hewitt posed six questions for the carbon market to resolve so it could deliver more for nature. How did these matters progress in 2023? And what’s the outlook for 2024 and beyond? Hewitt revisits the questions he asked and gives a status update for each.

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Premium job listings

• Senior Adviser, REDD+, Fauna & Flora – Cambridge, UK
• Director, Forest Management Program Development and Innovation, Verra – Remote (Worldwide)
• Manager, Integrated Marketing, Verra – Remote (Worldwide, with significant overlap with US business hours)
• Senior Program Officer, Carbon Market Infrastructure, Verra – Remote (Worldwide)
• Forest Carbon Technical Advisor, Wildlife Conservation Society – Phnom Penh
• Manager, Market Strategy & Engagement, Native – US (Remote)
• Forestry Carbon Project Developer, Hutan Synergy – Jakarta/Bangkok/Singapore
• Legal Counsel, Verra – Remote (US)
• Environmental Markets Correspondent, Carbon Pulse – Latin America

Or click here to see all listings

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BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

Hurry up! – India and other developing countries are worried about the attempts made by developed countries to shorten the delivery timeline of IPCC’s 7^th assessment cycle report, the Hindustan Times reported. According to the newspaper, in the 60^th session of the IPCC held in Istanbul earlier this month, there were debates about when the report should come out. Developed countries, such as the US, were pushing for an early timeline while many developing countries were concerned that the “rush” created would lead to a compromise on the quality of the reports. IPCC co-chairs also repeatedly said that if the reports were rushed, the process would involve compromises, which will be against the interests of developing nations. As per an official from the Indian delegation, the purpose of developed countries behind speeding up of the reports was not based on any scientific requirements but was done in an attempt to get some findings before the second GST, which could be tailored to favour the viewpoint of such economies, the newspaper said. The meeting ended with the IPCC failing to arrive at any consensus.

Join our club – Talks between the US and EU on a green steel arrangement need to progress faster, say steelmakers, as reported by Euractiv. Washington first pitched a “green steel” club in Dec. 2022 to overcome the frozen retaliatory tariff dispute started by the Trump administration and today that steel club is known as the Global Arrangement on Sustainable Steel and Aluminium (GASSA). There is a severe problem with steel overcapacity, with 15% of production capacity going unused in 2023 and Western countries aggravated by China opening the floodgates to cheap steel made with poor environmental and labour practices. Europe and the US seek to kick-start a green transformation of the industry, which requires an offtake of green steel at above-market prices. Such a club would help to ward off ”unsustainable” Chinese steel, but the details surrounding such a deal are still fluid.

Climate cash – Climate finance secured from rich nations will be key to determine whether COP29 will be a success with benefits able to trickle down to vulnerable people in developing nations, writes Climate Change News. Government negotiators of rich nations often stress that reaching high ambition for climate finance is contingent on getting parliamentary approval, and so as parliament debates about budgets and allocations take place early in the year, they need to act now. The climate finance gap is huge and growing. Accessing more of it is key to tackling climate change. In Baku, governments will set a new post-2025 finance goal with implications for all previous agreements about scaled up ambition on cutting emissions, adapting to climate change, loss and damage and technology transfer. In addition to agreeing to a scaled up finance commitment, the deal must also address timeframes, measures and tools for tracking and accounting, and an agreement about where and how funding should be spent and directed.   

AMERICAS

Sue the state – The US Chamber of Commerce, the largest US business lobby, sued the state of California on Tuesday alongside the American Farm Bureau Federation and other California business groups, to overturn the state’s climate disclosure laws, Reuters reported. SB-253 and SB-261 mandate companies doing business in California with annual gross revenues of over $1 bln – referred to as reporting entities – to disclose their full Scope 1-3 GHG emissions, and companies doing business in California with annual gross revenues exceeding $500 mln to report on their climate-related financial risk, respectively. The groups claim the laws will impose “massive” costs on businesses and violate free speech protections in the US Constitution by compelling disclosures, and are ultimately invalid as they act as de facto national emissions regulation. While the disclosure laws appear similar to EU and Australia counterparts, legislative goals differ, analysis by Carbon Pulse has found.

WA bill updates – House Bill 1955, which repeals 2019 rules that required Washington utilities to calculate and report GHG emissions of their fuel mix, has been passed by the House. Meanwhile, SB 6058, facilitating linkage of Washington’s carbon market with the California-Quebec carbon market, has been passed to the Rules Committe, while its companion bill HB 2201 has moved to House Appropriations. HB 2333, introduced to assess offset credit potential under voluntary carbon market protocols and to prevent linkage with the California-Quebec joint carbon market until the assessment is completed has passed the House Committee on Finance. Likewise, HB 2199, which would exempt past and future amounts received from the receipt, generation, purchase, sale, transfer, or retirement of allowances, offset credits, or price ceiling units from the business and occupation tax and the public utility tax has passed the House Committee on Finance.

No refunds – The Washington Department of Revenue (DOR) on Friday issued a special notice to provide clarification on House Bill (HB) 2199. Sponsored by Rep. Orcutt (R), HB 2199 seeks to exempt past and future amounts earned for credits or allowances from both, the Business and Occupation Tax and the Public Utility Tax. However, DOR’s notice clarified that the department is prohibited from granting a refund of taxes paid before the new legislation would take effect.

Rulemaking ahead – Washington’s Department of Ecology (ECY) will host two Clean Fuel Standard (WCFS) rulemaking meetings on Feb. 22 and 28, to align the state’s programme with legislation in the Senate – SB 5447 (companion House bill HB 1505), promoting the production and use of sustainable aviation fuel (SAF), the agency announced Tuesday. This rulemaking will also consider establishing a third-party verification system, refining the compliance and enforcement process, and making various other revisions to strengthen and streamline the WCFS programme, ECY said in the announcement.

Clever clogs in carbon – Yale is set to continue buying carbon credits to help meet its 2035 net zero emissions target, with the university having retired over 47,000 tCO2 starting in 2020. The purchase was equivalent to reach its emissions target set in 2005 and Yale has continued acquiring credits for every year as it failed to meet the standard. The University’s 2025 Sustainability Plan acknowledges such offsets to be stopgap measures but expects the credits to continue helping the institution reach its emissions goals. The university’s current carbon offset portfolio has focused on projects that capture or reduce methane emissions, with one of the projects the Laurelbrook Farm in East Canaan, which composts its manure by adding wood chips and frequently aerating it, a process that reduces the methane otherwise produced from anaerobic breakdown.

Accelerating removals – Black & Veatch is seeking applications for its IgniteX Carbon Dioxide Removal Accelerator, a 12-week, largely virtual programme in which participants work with the company and experts to develop, pilot, and market CO2 removal technology. The programme provides mentorship, access to the company’s industry network, product testing opportunities, coaching on developing pitches, and introductions to investors. Black & Veatch, an engineering, procurement, consulting, and construction firm, is also working with research institute RTI International to provide technical and commercialisation support to IgniteX participants. Applications are due by Feb. 19.

EMEA

CO2 stores – More than 60 CO2 storage units located offshore the UK have been added to the national CO2 storage database, CO2 Stored, by the British Geological Survey. The research by BGS and Heriot-Watt University (HWU) was funded by the UK Industrial Decarbonisation Research and Innovation Centre (IDRIC) and saw 61 new stores added to the database, while updating over 210. CO2 Stored is the UK’s national online evaluation database that identifies the geological storage potential under the UK seabed, useful in the identification of where to locate carbon capture and storage projects. The updated database provides access to 630 potential storage units in the UK, including saline aquifers and depleted oil and gas fields.  The data is freely available and used by industry for project development in addition to informing government strategy.

Falling behind – France is falling behind on rolling out renewable energy in line with EU targets partly due to a lack of strong political will, Euractiv reports. The country had a 28% share of renewables in electricity consumption in 2022, surpassing the 27% threshold it was aiming for at the end of 2020, but is still not on track to reach the 40% target by the end of 2030, according to the French Renewable Energy Observatory. The EU-wide target of 42.5% renewable energy in gross final energy consumption by 2030 expects every EU country to share the burden, but national objectives are not legally binding on EU member states and are even rejected by pro-nuclear countries like France, which claims that steep renewables roll-out undermines its low-carbon nuclear base.  France is yet to provide the Commission with a quantified target for the share of renewable energy in its gross final energy consumption by 2030.

Big talk – Nigeria’s carbon market is key to a sustainable environment and economy, its minister of environment, Balarabe Lawal, said at a regional event, according to local media. The minister made the comments on Tuesday in Abuja during a two-day workshop on Nigeria’s carbon market framework, Article 6 training, and implementation design. “Unlocking Nigeria’s carbon market opportunities holds potential for sustainable growth, economic development and climate change mitigation,” he said. He also explained that collaborating with international partners, capacity building, and targeted investments can help actualise these potentials, including via Article 6. It is timely to consider the different approaches to the carbon market necessary to steer the country on the trajectory of low-carbon policies, while also considering national priorities such as socio-economic development and sustainable development, he added.

Change of heart – In a major reversal of its earlier decision, Saudi Arabia has asked Aramco – the world’s biggest oil producer – to maintain its maximum sustainable production capacity at 12 mln bpd instead of ramping it up to 13 mln bpd by 2027, the Financial Times reported. The original decision to increase planned production capacity was announced in 2021 which had met severe criticism from environmental activists. The major oil producing nation has pledged to reach net zero by 2060.

Speed up needed – Germany’s offshore wind expansion was fairly modest last year with just 27 new turbines with a total capacity of 257 MW added, while 74 new foundations were laid — paving the way for more installations to be added more swiftly. The country aims to add more than 21 GW of capacity by 2030, however, meaning that expansion figures must increase more than tenfold to an average of 3.1 GW in coming years. Industry stakeholders are calling for auction procedures under Germany’s Offshore Wind Energy Act to be adapted to consider the effects of inflation and qualitative criteria that make the European wind industry more competitive. Currently, there are 1,566 turbines with a total capacity of 8.4 GW in operation in the North Sea and the Baltic Sea and expansion currently is projected to exceed 700 MW in 2024. (Clean Energy Wire)

Fossil fuel protest – Oxfam is withdrawing its deposits from Barclays and looking to terminate its conduct with the bank completely in protest over its role in fossil fuel finance, reports the Times. The charity has notified the bank that it wants to withdraw all the cash deposits it holds and says it has already ceased to use it for foreign exchange transactions. This isn’t the first time an NGO has dropped Barclays in protest over funding for oil and gas. Last July, Christian Aid also ended its relationship with the bank after eight years.

ASIA PACIFIC

New forest carbon project  – Project developer Juno Capital has secured a partnership with a local government-backed investment firm and software provider Beijing eGOVA to develop forest carbon sinks in Chuxiong Yi Autonomous Prefecture, China’s Yunnan province, according to a company announcement. The three companies said they would orderly assess forest resources and develop carbon projects within the Chuxiong region, without elaborating on the project size. Juno Capital recently also signed a similar forest carbon deal with the government of Lingqiu County in Shanxi province. 

On the green path – Indian government owned energy firm, NTPC Green Energy Limited (NGEL) has entered into a partnership with the government of Maharashtra to invest in green hydrogen projects worth 800 bln rupees ($9.6 bln) over the next five years. Under the partnership, both parties have agreed on the capacity development of 1 mln tonnes of green hydrogen, green ammonia, and green methanol every year. They have also agreed for the development of renewable energy projects with or without storage of up to 5 GW in the state and pumped storage projects of 2 GW.

In good spirits – The French government will help Vietnam in its fight against climate change, the French ambassador said on Monday. The government is already providing over $540 mln via French Development Agency (FDA) to assist the Southeast Asian country in its climate change adaptation, biodiversity conservation, and marine pollution prevention projects. Further, the ambassador said that France intended to expand its partnerships with Vietnam in the implementation of the JETP resource mobilisation plan, the building of financial instruments of the carbon market, biodiversity conservation, and ocean protection. Vietnam has recently adopted revised laws on land and water resources to conserve biodiversity and recover natural ecosystems and to do so it will need technical and financial support from the international community, Vietnam Plus reported.

Scrapped – Australia’s Coalition opposition have vowed to strip funding from the Environmental Defenders Office if it wins the 2025 election, the ABC reports. The EDO is an environmental legal centre that runs litigation and offers legal support in climate change and environmental cases. It recently unsuccessfully ran an action against Santos’ Barossa LNG project, arguing that a pipeline in the project would impact underwater sites of cultural significance to indigenous Tiwi Islanders. The Albanese government has committed A$8.2 mln to the EDO over four years, with the rest of it coming from state and territory governments or philanthropy. However, Opposition Leader Peter Dutton told a press conference Tuesday he would pull back funding from the group, arguing that its recent loss and its controversial conduct in the Barossa LNG case had discredited the group. Unsurprisingly, Dutton’s commitment was supported by the oil and gas lobby group, Australian Energy Producers.

VOLUNTARY

Aruba’s credits – Aruba’s Ministry of Economic Affairs, Communication, and Sustainable Development has investigated the potential benefits of carbon trading as part of its initiative in the country’s Action Plan 2023-25 to transition into a sustainable and inclusive economic model, the government announced Tuesday. Following an assessment by non-profit Metabolic Foundation to determine the number and worth of carbon credits that Aruba could potentially generate, the government has decided to move on to the next step with the aim to establish a pilot project to test the purchase and sale of credits in the international market. The ministry will explore different existing worldwide carbon trading platforms that can be implemented in Aruba, and leverage the expertise of the Metabolic Foundation and other partners with the necessary knowledge to examine the project scope.

The evidence is clear – Xpansiv has launched connectivity to the Evident registry for International Renewable Energy Certificates (I-RECs). This integration allows market participants to access and manage assets from 13 different registries through Xpansiv’s EMA meta-registry and portfolio management system. The system, which has facilitated the transfer of around two bln environmental assets in the past two years, it says, will streamline on-market and over-the-counter transactions. The connection to Evident’s I-REC registry automates the asset trading lifecycle, facilitating T+0 settlement on the CBL spot marketplace and broadening access to international, voluntary emission reduction units, according to a press release Tuesday.

AND FINALLY…

Going underground – A study examining 207 subway projects across 47 countries found that expanding subway systems by 1 km costs approximately $200 mln. KPMG estimates the annual operational and maintenance costs to be around 2% of the initial investments. While subway systems can effectively reduce congestion and improve health, their high upfront costs often make them unaffordable for many city governments, especially those with fiscal constraints. However, recent research highlighted by the World Economic Forum and using the World Bank’s satellite-based carbon emissions database has quantified the impact of subway systems on CO2 output. The study covered about 1,500 cities with populations over 500,000, of which only 192 have subway systems. It was found that CO2 emissions in cities with subways are 50% lower than those without, translating to an 11% reduction in global CO2 emissions. For city leaders considering subway investments, two main considerations emerge: the economic benefit and financing options. The economic benefit includes CO2 savings alongside reduced commuting times and vehicular pollution. The Social Cost of Carbon (SCC), which estimates the cost of damages caused by an additional ton of CO2, varies based on future discounting methods. By calculating the annual emission differences with and without subways from 2020 to 2050, valued at the SCC, and considering investment and operational costs, the study assessed the returns on investment through the net present value ratio (NPVR). If NPVRs are greater than 0, subway projects yield positive co-benefits, with NPVRs above 1.8 justifying subway systems on climate grounds alone. The study presented three scenarios:

• Modest assumptions: $50/t SCC and $280 mln/km cost, yielding co-benefits in 294 cities.
• Midrange assumptions: $100/t SCC and $200 mln/km cost, yielding co-benefits in 465 cities.
• Aspirational assumptions: $150/t SCC and $140 mln/km cost, yielding co-benefits in 794 cities.

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