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TOP STORY
IMO “more and more confident” of agreement on pricing mechanism for shipping -briefing
The newly appointed secretary general of the International Maritime Organisation is increasingly confident that an agreement will be reached on the technical measures and pricing mechanism to implement under its GHG strategy, he told a press briefing on Thursday.
VOLUNTARY
Verra lifts suspension of troubled Kasigau REDD projects following review
Credit issuance can resume to the two Kasigau Corridor REDD avoided deforestation projects in Kenya after Verra completed a review of allegations of sexual offences by staff and improper employment practices.
Corporate emissions disclosure platform raises $100 mln in Series C funding
A climate disclosure platform has announced a Series C funding round worth $100 million, as it seeks to expand a tool to help corporates manage their emissions data.
High retirements of carbon credits in January shrinks oversupply for second month in a row
Retirements of carbon credits from the four largest voluntary carbon registries topped 20 million and outstripped issuances in January, although momentum slowed from the surprisingly high level of retirements in December, data from the Carbon Pulse VCM Portal shows.
Gold Standard launches offshore shipping voluntary carbon methodology
Voluntary carbon certification body, Gold Standard, has launched a new emissions reduction methodology to credit projects that implement shore-side or offshore electricity supply for ships, adapted from a Clean Development Mechanism version, it said in a quarterly update.
French biochar startup and global coffee trader team up to produce carbon credits
A French biochar company and a global agricultural goods trader have announced a partnership to deploy biochar in coffee production and generate carbon credits from the resulting mitigation.
Experts divided on role for remote sensing in carbon project MRV
Experts expressed split views on when remote sensing technology should be deployed for monitoring, reporting, and verification (MRV) purposes of carbon projects, speaking during a webinar Thursday.
Destruction of ozone-depleting gases to yield high-priced carbon credits, says developer
A joint initiative between an American credit developer and a Chilean processing facility for ozone-depleting substances (ODS) has sent refrigerant gases to France for destruction, anticipating issuance of high-priced carbon credits in a category that could receive an expedited high-integrity stamp from the Integrity Council for Voluntary Carbon Markets (ICVCM).
NGO releases handbook of nature-based carbon credits to promote integrity
A US-based environmental NGO has released an introductory handbook to provide guidance on carbon credits that are developed using natural climate solutions (NCS).
Diddy DAC: US firm launches small-scale containerised carbon removal tech
A US-based direct air capture (DAC) technology developer has introduced a smaller version of its containerised system for removing CO2 from the atmosphere.
EMEA
INTERVIEW: Better to include industrial carbon removals, not land-based, in EU ETS, says chair of EU’s scientific advisory board
Including land-based carbon removals in the EU ETS may not be a good idea, but credible industrial carbon removals should be incorporated post-2030 to deal with residual emissions from hard-to-abate industries, according to the chair of the scientific board advising the EU on climate change.
No new climate funding in revised EU budget
The EU’s 27 leaders managed to agree on the bloc’s budget for the next four years on Thursday, with funding secured for Ukraine and migration but no fresh financing for net zero industry.
Brussels prepares to define permanent carbon storage under ETS rules
The European Commission is working to tweak EU ETS rules within the coming months to define the projects that can permanently store greenhouse gases – an option which companies may seize upon as a way to purchase fewer carbon allowances.
Farmer protests across Europe highlight challenge of tackling agricultural emissions
European farmers protested in Brussels for the third day in a row on Thursday calling for a redistribution of the budget, with climate and sustainability policy also a strong driver behind the backlash, as EU leaders headed to the city for a special economy-focused summit.
German carbon credit company sees new CEO join
A Munich-headquartered carbon credit company announced Thursday that it has a new CEO, while the former one will now act as the company’s managing director.
Euro Markets: EUAs fall back after weak auction triggers selling as UKAs post 15% gain since recent record low
European carbon prices slumped below key psychological and technical support levels after the weakest auction interest in ten months led to the largest discount of the year so far and triggered steady selling pressure, while UK Allowance prices rose for a third day as the British market posted a 15% recovery from Monday’s record intraday low.
ASIA PACIFIC
New Zealand ministry urges new govt to make decision on ITMO arrangements, as Shaw proposes ETS bill
A ministerial briefing to the incoming New Zealand government has warned that it will have to make key decisions around how to meet its international climate targets, including whether to prioritise domestic emissions reductions or rely on purchasing carbon credits offshore.
Japan may legislate carbon capture and storage bill soon -media
Japan may soon legislate a bill that could provide much-needed regulatory clarity for participants in the domestic carbon, capture, and storage (CCS) market, local media reported Thursday.
Chemicals giant to promote low-carbon rice farming practices in Asia
A German chemicals giant will work with a Philippines-based research institute to help popularise the adoption of climate-friendly rice farming practices in Asia.
AMERICAS
Washington Clean Fuels Standard proposes overhauled 2024 participation fee structure
The Washington Department of Ecology (ECY) released rates on Thursday for proposed 2024 fees charged to Clean Fuels Standard (CFS) programme participants, a marked shift from the fee structure last year, as well as updates to utility-specific carbon intensity (CI) values.
WCI Markets: WCAs plunge to the lowest levels since programme inception, CCA activity subdues
Washington Carbon Allowances (WCA) prices stumbled further for the second week following a frenzy over the future of the state’s cap-and-trade programme in question, while California Carbon Allowance (CCA) values saw a marginal uptick amid an absence of a significant market driver.
Massachusetts Q4 regulated emissions at five-year high, 2023 emissions drop YoY
Fourth quarter emissions under the Massachusetts Global Warming Solutions Act (GWSA) reached a five-year high in 2023, although total annual emissions still ended at their lowest levels since 2020, according to data updated this week.
Approval of methane-cutting cattle feed ingredient brings Canadian farmers a step closer to offset sales
Canadian regulators have authorised the use of a feed ingredient proven to reduce cattle methane emissions by around a third, bringing Canadian farmers a step closer to being able to generate and sell carbon offsets by incorporating the additive into their practices.
INTERNATIONAL
Shell increases oil and gas production, renewable power output in 2023 as profits plunge
Shell on Thursday released its quarterly report for the three months to the end of December, showing it had increased renewable power output for the year, as well as a marginal boost to oil and gas production, as overall profits slumped 30% on weaker fossil fuel prices.
BIODIVERSITY (FREE TO READ)
German finance ministry warns against ‘biodiversity leakage’ risk
Regional and international disclosure frameworks should enhance cooperation to minimise the risk of “biodiversity leakage”, a German Ministry of Finance official has warned.
NZ govt’s fast-tracked development approval plans alarm environmental groups
A proposal by the New Zealand government to create a fast-track ministerial approval process for infrastructure and development projects deemed significant has been declared “a war” on the country’s natural world by environmental groups.
Right-wing in Germany threatens nature conservation, says minister
Right-wing politics in Germany poses a threat to nature conservation, as well as all areas of life in the country, a minister has said.
Japanese firms partner to develop TNFD-aligned voluntary biodiversity credits
A Tokyo-headquartered asset management firm has teamed up with a tech company to create voluntary credits aligned with the Taskforce on Nature-based Financial Disclosure’s reporting framework, focusing on Japan at first but eyeing international expansion later.
Australian developer to design NRM methodology for wildlife sanctuaries
A project developer is planning to draw up a methodology for wildlife sanctuaries under Australia’s Nature Repair Market, hoping to earn voluntary biodiversity credits to fund the protection of rare and threatened species.
Wetlands in Australian state worth billions in ecosystem services beyond sequestration value, report finds
A study out of Western Australia has attempted to place a monetary value on two water-based ecosystems to better understand their myriad values to the environment and as sources of carbon sequestration.
CDC Biodiversite takes first marine step for Global Biodiversity Score
CDC Biodiversite has added an overfishing module to its Global Biodiversity Score (GBS) methodology in its first step to integrating marine biodiversity.
Biodiversity Pulse: Thursday February 1, 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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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
Carbon Pulse goes dark – Don’t worry, it’s good news! We have implemented a ‘dark mode’ feature on our website aimed at those who prefer to consume a bit less electricity (or use up a bit less mobile/tablet battery life) while reading our news or who find our all-white background a bit hard on the old eyes. Just look for the sun/moon button to toggle between light and dark modes. For desktop users, you can also drag and drop that button to your preferred location on your screen.
INTERNATIONAL
Deadline deviants – Developed countries have missed the Jan. 31 deadline to choose their representatives on the new loss and damage fund, Climate Home News reported. None had been chosen for rich countries, whereas 13 of the 14 representatives of regional groups of developing countries had been named. Only two of those were women. Two major blocs of developed countries – the EU and the Umbrella Group – were still debating how many seats each should get, it reported. The EU said the number should be based on the amount donated to the fund. The EU has pledged $447 mln, the Umbrella Group – which includes the US, Japan, and UK – $115 mln.
EMEA
Sell those permits – In 2023, a total of over 91 mln EUA and EUAAs with a total value of about €7.66 bln were auctioned at the EEX for Germany, according to a report published this week by DEHSt. This was the highest annual revenue for Germany since the introduction of the EU ETS, and resulted in a volume-weighted average price per allowance of €83.66, the authority said. The report also provided details on Q4 volumes as well as secondary market analysis.
Concrete demands – A group of NGOs and industries have written to the European Commission to demand that the upcoming Industrial Carbon Management Strategy include a provision to create a market for low-carbon products, with the inclusion of concrete demand and supply side policy initiatives. They argue that such initiatives targeting the demand and supply for low-carbon products will be crucial to advance industrial decarbonisation, including through the scale-up of European green lead markets. The letter was signed by Bellona, CCS Europe, Fertilizers Europe, Hydro, Yara, Clean Air Task Force, among others.
British backing – The French government is pushing British ministers to provide loan guarantees to Hinkley Point C nuclear plant in southwest England in order to try and ease developer EDF’s soaring financial costs. Last week, the French-owned utility said that the cost of the new nuclear power plant could reach as high as £46 bln, up from £18 bln in 2015 prices, as it delayed the completion date of the first two reactors by at least two years to 2029 at the earliest. The contract drawn up a decade ago sees any construction cost overruns at Hinkley fall on EDF rather than the taxpayer, but French officials are pushing the UK to provide EDF with state guarantees on new Hinkley-related loans, which would allow EDF to issue project-level debt and help alleviate pressure on the company’s finances. (FT)
Proper protection – Energy groups have called for improvements to a German interior ministry draft law aiming to regulate the resilience and physical safety of critical infrastructure. Greater clarity should be provided around who is responsible for energy supply infrastructure, which needs to be protected against natural disasters, accidents, or sabotage, say associations VKU and BDEW. VKU (German Association of Local Utilities) wants the Federal Network Agency (BNetzA) to be in charge of protecting infrastructure, rather than the Federal Office for Civil Protection and Disaster Assistance (BBK). It says the former has a good understanding of security aspects for the energy sector and regularly stress tests the system. There is renewed attention in Germany to potential attacks on critical infrastructure following underwater explosions that destroyed large parts of the Russian-German gas pipeline, Nord Stream, in 2022. (Clean Energy Wire)
On the tee – Costain, an infrastructure solutions company, has completed the front-end engineering design (FEED) stage for crucial onshore components of the East Coast Cluster (ECC) in Teesside, UK, according to a Thursday release. The ECC includes Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP). NZT Power, a collaboration between BP and Equinor, aims to become the world’s first large-scale gas-fired power station with carbon capture technology. It has the potential to generate 860 MW of low-carbon power, sufficient for about 1.3 mln UK homes. NEP, formed by BP, Equinor, and TotalEnergies, serves as the CO2 transportation and storage provider for the East Coast Cluster. The FEED phase, initiated in April 2022, involved Costain’s planning of new systems for both NZT Power and NEP within an integrated program.
Commodity transition – European Commodity Clearing (ECC) has started the transition to a portfolio-based Value-at-Risk (VaR) initial margin model for commodity derivatives. Completion of the process is expected for 2026, subject to regulatory approvals and member readiness. The move is intended to better reflect risk and further improve transparency.
Renewed strength – France’s nuclear industry, the backbone of Europe’s power system, has renewed strength with the country’s reactor fleet set to boast the most available capacity in at least five years in 2024, according to research house BloombergNEF. It’s a long way from the falling generation of recent years, when extended plant halts and Russian gas cuts brough Europe close to power blackouts, Bloomberg reports. The country’s lengthy reactor maintenance programme has been working to catch any leakage and cracks, say the analysts. France had 79% of operational nuclear capacity available in January, almost double the low seen in August 2022, and that may rise to 83% in February. With fewer repairs planned this summer than in recent years, reactor availability in 2024 will be the highest since at least 2019, BloombergNEF forecasts show.
Higher carbon, lower coal – The upward trend in the carbon price since 2015 has already led coal generation in Germany to decline steeply, and if the certificate price permanently rises above the €100 threshold, the outlook for coal could become very tight indeed, said Sebastian Ligewie at Energy Brainpool. Coal power generation could end up disappearing by 2030 whether there is a new phase-out law or not, due to the environment of declining energy consumption, cooling gas prices, and a flood of cheap renewable power, he writes. The last German coalition has agreed to phase coal out of the country’s electricity mix by 2038 at the latest, and the coal phase-out would ideally be completed by 2030 if the current coalition government has its way. (energypost.eu)
ASIA PACIFIC
First production – Australian technology developer Hazer Group has produced the first low-emissions hydrogen and graphite from its Commercial Demonstration Plant (CPD) in Perth using its patented novel ‘Hazer Process’, the company announced. Hazer has been working on the CPD for some time and has signed MoUs with Japanese companies to develop a hydrogen production facility in the North Asian county. As the name suggests, the company said it plans to ramp up operations of the CPD in the first half of 2024, performing tests and gathering data to demonstrate continuous operation at a commercial scale. Hazer’s share price on the ASX rose 13.3% in response to the news.
Ride the wave – South Korea’s HD Hyundai Marine Solutions (HD HMS) has signed its first commercial supply contract with steelmaker POSCO for ‘OceanWise’, an AI-based carbon emissions monitoring solution, it announced Thursday. Under the contract, HD HMS will help monitor the carbon intensity of ships operated by POSCO that import raw materials such as iron ore and coal, the two companies said. The marine solution provider also plans to promote life cycle assessment (LCA) for emissions and carbon credit commercialisation in the shipping sector through the use of Oceanwise.
Credit rating – NICE P&I, which specialises in securities valuation, has signed a business agreement with carbon research firm Namu EnR to develop a scoring framework for carbon credits traded in the voluntary market, including an information platform and various investment indexes, according to a company statement. The collaboration comes as the two Korean companies aim to improve data transparency in the market by providing a new evaluation system of carbon credit based on core principles, the statement said.
AMERICAS
Washington working groups – The Washington Department of Ecology (ECY) is forming several technical working groups to help inform potential programme changes as part of the ongoing cap-and-invest rulemaking process, it has revealed. The technical working groups will provide input on a series of potential revisions under consideration sourced from California’s ARB 2021 Offset Taskforce Report, voluntary offset market protocols, and public comments received during the current and previous rulemakings. The individual working groups are the following: Ozone Depleting Substances Technical, Forest Offset Technical, Blue Carbon Technical Working, and Environmental Justice Offset Working Groups. In December, ECY unveiled a slew of proposed updates to the state’s approximately year-old cap-and-invest programme.
Carbon cost controversy – Public intervener Alain Chiasson, the man appointed by the New Brunswick provincial government in Canada to defend the public interest at the Energy and Utilities Board (EUB) hearings, is urging the body to cut the amount consumers are being charged for federal clean fuel regulations by more than half in an upcoming decision, CBC reported Thursday. Chiasson said evidence has convinced him amounts for the “carbon cost adjuster” are set too high and are costing consumers too much at the pump, but oil industry representatives and retailers are cautioning that would be a mistake and are asking for the EUB to resist making major changes. The current formula, which was developed by the consulting company Grant Thornton, resets every week, allowing oil companies to add 5.22 cents per litre to the price of gasoline and 5.82 cents to the price of diesel to consumers in New Brunswick. Chiasson suggested that the cost of carbon adjustor should be between one cent to two cents per litre instead. Angela Brown, a partner at Grant Thornton’s officer, said she was told by oil companies that they would likely have to import significant amounts of expensive renewable diesel to comply with the federal policy as rules tighten in future years, which factored into the formula’s development. Chiasson argued that no oil company has come forward to show what its costs actually are, or whether there are any real plans to import renewable diesel. This makes relying on this reason and utilising the formula problematic. Timothy Auger from Advanced Biofuels Canada agreed with this notion, arguing there are low-cost options available to companies to meet the clean fuel rules. No oil company appeared at the hearing. The EUB’s Christopher Stewart, who chaired the hearing, said the board would consider all submissions but hinted it may take time to “wrestle” with the issue and come to a decision, according to CBC.
INVESTMENT
Cash boost – General Index (GX) has secured $12 mln in a Series A funding round led by 20VC and Chalfen Ventures. The funding will support its mission of developing superior and more accessible commodity prices for effective global resource management. The newly acquired funds will be utilised to advance the firm’s technology and expand its portfolio to include energy transition prices such as biofuels, sustainable aviation fuel, hydrogen, carbon, green ammonia, and green methanol. This week, GX said it will create ‘price baskets’ for carbon credits after a tie up with carbon ratings agency BeZero Carbon.
Building support – The Canada Infrastructure Bank (CIB) and the Bank of Montreal (BMO) partnered to provide energy retrofit funding in mid-sized residential and commercial buildings, Globe and Mail reported Thursday. The partnership follows an agreement between banks that CIB will provide low interest loans to BMO customers for projects that reduce their buildings’ climate pollution by at least 30%, and the former has set aside C$100 mln ($75 mln) to cover the cost of the programme. The collaboration focuses on the segment of the buildings sector that has been slow to decarbonise, and the partners expect commercial real estate teams at BMO to encourage customers to try out a relatively unfamiliar form of investment that banks would not have championed in the past.
SCIENCE & TECH
SHIPPING
Gone bust – A project that combined the efforts of Engie, Fluxys and the Port of Antwerp-Bruges, amongst others, to produce 8,000 tonnes of e-methanol, a sustainable alternative to traditional methanol, has gone bust. The project combined captured CO2 with hydrogen generated from renewable electricity to produce the clean fuel, but became too expensive to run because of high energy costs, geopolitical uncertainties, and the lack of sufficient offtakers. The project would have saved at least one tonne of CO2 for every tonne of e-methanol produced. It was supported extensively by various levels of policy in Flanders.
Twice as nice – Mangroves and saltmarshes may be twice as effective at sequestering carbon as previously thought, research from the University of Gothenburg found, Mirage News reports. Carbon dioxide is stored in the biomass and in the muddy soil, and several governments have launched blue carbon market initiatives to encourage landowners to restore and preserve the ecosystems. The new research uncovered additional stored carbon that is exported to the ocean as the tide recedes, in the form of bicarbonate, and scientists say this contribution has previously been overlooked. Bicarbonate is harmless and used in baking powder; in the ocean it’s used to build shells and coral skeletons.
AND FINALLY…
Play that fungi music – Flinders University researchers have discovered that playing sounds in a controlled environment can significantly accelerate the growth of soil fungi, a finding that underscores the potential of ‘eco-acoustics’ in aiding ecosystem restoration, agriculture, and composting industries, in a world where an estimated 75% of soil is currently deemed degraded. In the study, teabags containing organic matter were buried in soundproof boxes, with some exposed to loud, high-pitched soundwaves of 80 decibels at 8 kHz frequency for up to eight hours daily over 14 days. These teabags showed a notable increase in fungal biomass compared to control samples exposed to only ambient sound levels. Particularly, the growth-promoting fungi Trichoderma harzianum increased its spore cell biomass nearly fivefold when exposed to soundwaves. The authors said their study highlights the potential of acoustic stimulation in altering soil components beneficial for ecosystem restoration, and that it aligns with UN efforts to reverse the loss of nature.
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