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TOP STORY
EXCLUSIVE: Corporate Carbon implicated in legal case that could rock Australia’s carbon market
Two Australian carbon project developers are in a legal fight over the rights to revenue from Australian Carbon Credit Units (ACCUs) generated from two projects in Queensland, Carbon Pulse has learned, the outcome of which could have serious ramifications for the reputation Australia’s carbon market.
VOLUNTARY
More than 900 mln voluntary carbon credits under ICVCM review for high-integrity CCP label
Some 905 million carbon credits could be in line to be awarded the ICVCM’s Core Carbon Principles (CCPs) high-integrity stamp in an initial review of methodologies, the stakeholder initiative revealed to Carbon Pulse.
Scientists warn against over-reliance on CO2 removal in climate action strategies
Scientists have issued a stark warning about the potential consequences of heavily relying on large-scale, land-based CO2 removal (CDR) strategies as a means to avoid immediate and significant reductions in global greenhouse gas emissions.
Taiwan revamps domestic offset methodologies, streamlines process for energy efficient projects
The Taiwanese government has revamped its domestic carbon offset methodologies in a bid to ensure the quality of carbon credits and to encourage participation in the emerging voluntary market.
Tech firm launches carbon credits native to blockchain
A Switzerland-based technology initiative has launched what it says is the world’s first blockchain-native carbon credits, where all units are verified and issued directly on blockchain.
CBL reinstates eligibility of Kasigau REDD carbon credits for N-GEO spot standard
Carbon credits from the two Kasigau Corridor REDD avoided deforestation projects can again be delivered into CBL’s N-GEO spot contract, the exchange said Friday, following news that Verra has completed its review of the Kenyan projects that were mired by allegations of sexual offences by staff and improper employment practices.
AMERICAS
INTERVIEW: Researcher details shortcomings of California’s LCFS scheme in crediting avoided methane
Research by a US environmental NGO found that producers of factory farm biogas earning credits from California’s Low Carbon Fuel Standard (LCFS) programme were piping gas from digester projects that continued to release methane plumes up to 1,700 kilograms per hour.
California’s full-year power emissions in 2023 end at decade lows
California electricity sector CO2 emissions in December and for full-year 2023 maintained the trend of sitting at decade lows, even as the share of natural gas power supply remained near record highs, data published Thursday showed.
Canadian provincial pension manager creates C$1 bln fund focused on energy transition
A large Canadian pension manager launched Thursday a C$1 billion ($785 million) fund investing in industrial decarbonisation, renewable fuels, electrification, as well as energy storage and efficiency, among other energy transition themes.
Alberta TIER market credit prices inch up in January amidst oversupply
Spot credit prices under the Alberta Technology Innovation and Emission Reduction (TIER) programme in January ticked up following two months of stagnation, despite an oversupply issue plaguing the market, a report published Thursday said.
Speculators increase North American carbon holdings, naturals lock in CCA price gains
Regulated entities had the largest weekly reduction in California Carbon Allowance (CCA) net length in almost a year, locking in record high prices in RGGI as well, while speculators increased net length across North American carbon markets over the Jan. 24-30 period, data published by the US Commodities Futures Trading Commission (CFTC) Friday showed.
ASIA PACIFIC
Carbon market investment firm co-founder jumps ship to Pollination
One of the co-founders of a carbon market investment firm has joined climate advisory firm Pollination as an executive director, the latter announced Friday.
CN Markets: CEA volumes bounce back, but CCER trade remains slow
Allowance prices in China’s carbon market hovered just above the 70 yuan ($9.86) level over the past week with an uptick in liquidity, while the national offset market saw a plunge in trading volumes amid sluggish demand.
China likely to add 80 aluminium companies to ETS -industry group
China’s non-ferrous metals sector will see around 80 domestic aluminium producers covered by the national CO2 emissions trading scheme when the carbon market expands its sectoral coverage, an industry group has said.
Indonesian oil company opens carbon credit supply line
Indonesian state oil company Pertamina is opening a carbon trading business to offer services to domestic and international clients, with one client in the aviation business already secured, it said.
INTERNATIONAL
INTERVIEW: EU CBAM to clean up corporate supply chain, promote insetting
The rollout of the EU’s Carbon Border Adjustment Mechanism (CBAM) could encourage companies to further engage with decarbonising their supply chain through the process of insetting, said a carbon management platform that helps companies measure and report on their emissions.
Chevron, ExxonMobil report drop in income as output increases
US oil majors Chevron and ExxonMobil reported their full-year earnings on Friday, with both posting a drop in income as oil prices fell, after a year in which the companies’ commitments to cut emissions were juxtaposed with record domestic production levels.
EMEA
EU-funded research to model green industrial transition
A group of researchers receiving EU support has begun work on an interactive model to describe how different green policy and investment scenarios transform EU industry from 1990-2070, as the EU shifts into the implementation phase of its flagship Green Deal.
Euro Markets: EUAs post second inconclusive week as prices rally to technical level after weak auction
European carbon prices shook off the weakest German auction of the year to climb back above a key technical level that has acted as a fulcrum for the market for the last two weeks, and posted a second inconclusive weekly candlestick, while energy markets were little changed amid opposing pressures.
BIODIVERSITY (FREE TO READ)
PREVIEW: GEF Council eyes boosting biodiversity funding at first ever GBF Fund Council meeting
Scaling funding to tackle biodiversity loss will be one of the top priorities of next week’s Global Environmental Facility (GEF) Council meeting, as discussions on the newly established Global Biodiversity Framework Fund (GBFF) are set to take centre stage.
Australia seeks advisors to join Nature Repair Market committee
The Australian government has put the call out for advisors to sit on the board of its independent expert committee for its recently legislated Nature Repair Market (NRM), it announced Friday.
Brazilian business coalition partners with impact data provider to support TNFD disclosures
A coalition of over 100 Brazilian businesses has partnered with impact data and analytics provider GIST Impact to accelerate the adoption of the Task Force on Nature-related Financial Disclosures (TNFD) recommendations.
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Premium job listings
- *Team Lead (m/f/d), Carbon Markets and Pricing, adelphi – Berlin
- 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
*New listing
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Lights out – Carbon Pulse has introduced a ‘dark mode’ feature on its 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
Cash call – UN climate chief Simon Stiell on Friday said that at least $2.4 trillion is required to achieve global climate change goals, highlighting the importance of financial investment in the transition away from fossil fuels. Speaking at the Azerbaijan Diplomatic Academy ahead of this year’s COP29 climate talks, Stiell urged countries to convert financial commitments from the previous summit in Dubai into actionable steps. Stiell stressed the critical role of finance in combating climate change and urged for a significant boost in climate grants, concessional finance, and the mobilisation of private capital by 2030. He also warned against complacency following the political agreement at COP28, pointing out the necessity of immediate action to minimise future climate-driven destruction.
Checked and changed – A report covering the technical assessment of the voluntary submission of Dominica on its proposed forest reference emission level (FREL) and forest reference level (FRL) has been filed on the UNFCCC website. The FREL/FRL proposed by the Caribbean island nation covers activities that reduce emissions from deforestation, bring down emissions from forest degradation, and enhance forest carbon stocks. Dominica’s FREL/FRL presented in the original submission, for the reference period 2001–2017, corresponds to mitigation of 648,028 tonnes of carbon dioxide equivalent per year, including an adjustment. As a result of the facilitative process during the technical assessment, the FRL was modified to 446,983 tonnes of carbon dioxide equivalent per year, including an adjustment, the UN report stated.
AMERICAS
Gut check – Project 2025, a roadmap devised by dozens of US conservative organisations for former President Donald Trump, outlines a series of steps to dismantle US climate policies enacted by the Biden administration should Trump win a second term. The plan focuses on promoting fossil fuels, restructuring the US Global Change Research Program to reduce its influence, and replacing the White House climate adviser with an advisor prioritising the fossil fuel industry’s needs. Trump has already said that gutting climate measures and boosting fossil fuels would be one of his top priorities if re-elected. His approach aligns with his previous energy agenda, emphasising increasing oil and gas drilling and reversing Biden’s climate initiatives more rapidly than Obama’s policies. Project 2025 also aims to challenge the scientific foundation of climate laws, potentially affecting environmental regulations and public health measures related to the fossil fuel industry. Despite the ambitious rollback plans, reversing Biden’s Inflation Reduction Act’s $370 billion in climate incentives and spending may prove challenging, E&E reports. The Washington-based Heritage Foundation worked with other conservative organisations to produce Project 2025, which offers 920 pages of policy prescriptions to ensure the chaos of Trump’s first term is not repeated if he gets a second.
Minnesota moderation – A 40-member working group approved by Minnesota’s legislature released Thursday a report recommending that the state lower the ambition of its targets in regards to the potential creation of a clean transportation standard, reported MinnPost Friday. The report issued by the group found that carbon intensity (CI) reduction targets set by legislation may be too difficult to achieve based on the market and current clean fuel technologies. Modelling done by the group showed that the state would only see a 30% reduction in CI by 2050 in a business-as-usual case study, and the goal of 100% reduction by 2050 would only be possible through aggressive policy-making efforts. The report recommended lowering the 2030 reduction target to 13-17% from 25%, and the 2040 target to 40-50% from 75%. The group also recommended the 100% reduction for 2050 changed to a goal from a target. While a majority of the 40-member working group agreed with the report’s recommendations, some members united to release their own minority report. This outlined why such a standard may have negative environmental impacts through incentivising the production and use of ethanol, which the minority report’s authors argued was even more polluting than plain gasoline. Peter Wagenius, legislative director for the Sierra Club, which participated in the working group and minority report, argued the main report didn’t focus enough on electrification and promoting electric vehicles. The minority report also took issue with mention of carbon capture and storage (CCS) in the main report, arguing that this only incentivises emitting more CO2.
Brazil bucks – Wilson Lima, the governor of the Brazilian state of Amazonas, announced that the state will soon receive the first payment from the sale of carbon credits, Rede Onda Digital reported Friday. The payment is part of the Amazonas 2030 initiative, launched last year, and Lima also said that the state would approve projects this month in the amount of R$200 mln ($40.2 mln), with R$50 mln expected to go into state accounts. Half of the amount received would be invested in communities where carbon credits were generated, while the other half would be allocated to the Climate Change Fund. In Nov. 2023, the state more than doubled its amount of accredited REDD+ developers.
State carbon rights – The West Virginia Senate Energy Committee advanced new legislation Thursday that would allow the US Environment Protection Agency (EPA) to give the state main control for permitting underground injection wells for carbon capture and containment, WV News reported. Currently, the EPA has this control and has been known to be slow to approve permits. Scott Mandirola, who works at the West Virginia Department of Environmental Protection, said the bill was created with help from the EPA. The law, SB 596, affects two parts of the state’s environmental law: the Water Pollution Control Act and the 2021 Underground Carbon Dioxide Storage and Containment Act. The bill would give the state enough power to enforce rules about carbon containment wells and the Water Pollution Control Act. SB 596 would also change the liability release period for Class VI UIC wells to 50 years from 10 years. Currently, only Louisiana, North Dakota, and Wyoming have control for permitting Class VI UIC wells.
Canadian conversations – Environment and Climate Change Canada (ECCC), the country’s environmental ministry, announced Friday that it is launching a public engagement process to hear the opinions of Canadians and Indigenous peoples across the country to inform setting of the national 2035 GHG emissions target. ECCC is inviting Canadians to share their views on its virtual public engagement platform, which is open until Mar. 28, 2024. The input collected through this engagement process will be considered when setting the 2035 target, ECCC said in the press release. In December, the federal government’s first progress report on its 2030 Emissions Reductions Plan (ERP) showed Canada reaching 36% emissions reduction below 2005 level by 2030 if all modelled measures are fully adopted, while additional actions and new measures would need to be implemented for the full 40% goal to be achieved.
EMEA
Change of plans – Poland is set to withdraw its legal challenges against EU climate policies, Reuters reports, which signals a shift in the country’s approach to climate change following the election of centrist PM Donald Tusk’s pro-European government in Oct. 2023. This decision marks a departure from the previous nationalist Law and Justice (PiS) party’s stance, which had filed lawsuits at the EU’s top court aiming to annul several key EU climate initiatives. The Tusk administration is coordinating the withdrawal of these cases, including challenges to policies on banning new CO2-emitting car sales by 2035, national emissions-cutting targets, changes to the EU’s carbon market, and carbon storage goals for forests. The government also plans to adjust national climate policies to accelerate the transition from coal to renewable energy, ensuring support for affected workers and industries.
Petrolheads – The Ghanaian government now requires citizens to pay an annual levy for the carbon emissions produced by their petrol or diesel-powered vehicles, the BBC reports. Several citizens are opposing the charge, which they see as an added burden amid an ongoing economic crisis. But some leaders and environmental groups are endorsing it, saying it will cut the country’s emissions and help raise more revenue for the government. The tax agency, the Ghana Revenue Authority (GRA), has said that the levy aligns with the government’s plans “to promote the use of eco-friendly technology and green energy”. The GRA began collecting the annual levy, approved by parliament in December. Fees range from 75 Ghanaian cedis ($6) for motorised tricycles and motorcycles to 300 cedis ($24) for vehicles with a capacity of 3,000cc or higher.
Canny calculations – UK energy regulator Ofgem is investigating the performance of wind farms that have been overstating how much power they produce, following a Bloomberg News report that found dozens of wind farms to have saddled consumers with millions in extra costs by overestimating the energy they plan to generate. Ofgem is looking into the matter and says that it continues to work to protect market integrity and consumers. Some wind farms overestimate the amount they would otherwise have generated during periods of curtailment in order to increase the amount they receive from system operators to switch their turbines off. (Bloomberg News)
Taking it back – Mozambique plans to take back the 1,150 MW of hydropower that it currently sells to South Africa for its own use, Bloomberg reports. The plan to end half a century of hydropower supply to South Africa’s state-owned utility threatens the viability of Africa’s second-biggest aluminium smelter and raises risks for the country’s most industrialised economy. The contract for energy from the Cahora Bassa plant in Mozambique ends on Dec. 31, 2030. South Africa is currently battling power cuts that are stunting economic growth, with South32 – operator of the aluminium smelter – requiring about 900 MW of electricity.
Carbon management rift – Germany’s upcoming carbon management strategy is being delayed by government divisions on carbon capture and storage (CCS), Euractiv reports, further complicated by a leaked EU climate policy draft promoting the controversial technology. The European Commission is due to present a policy document on Feb.6, in which it will explain what role CCS have to get the EU to carbon neutrality. The EU has put the use of carbon capture in the energy sector back in the agenda, suggesting that any remaining fossil fuel combustion could be coupled with CCS. Meanwhile some NGOs in Germany have out in opposition of CCS, and centre-left SPD party and the Greens have been told to fall in line with the government’s pro-CCS stance. Two questions also remain, where the captured CO2 be stored and whether the government should promote CCS applied to gas power plants.
Czechia’s largest investment in its history? – The Czech Republic said it welcomes bids of four nuclear power plant units at the existing Dukovany power plant rather than the one initially planned, while the Czech government confirmed it will no longer pursue bidding talks with US power company Westinghouse. Westinghouse’s bid did not identify the entity responsible for the quality of the work, the government said, therefore it could not be compared in the evaluation. Westinghouse’s failure to meet the conditions is a shock as it was among the favourites and is expected to build nuclear plants in neighbouring Poland. (Euractiv)
Two to tango – The biggest combined solar and battery power plant in Africa has come online in South Africa, adding 540 MW of solar and 225 MW of battery storage to the grid from 5 am through 9:30 pm. The project developed by Norway’s Scatec has attracted more than 400 mln Norwegian krone (€35 mln) from Norfund-managed Climate Investment Fund, while British International Investment is another contributor through the South African company H1 Capital. The Kenhardt facilities are among the largest hybrid solar and battery storage facilities in the world and will help South Africa reduce its frequent power outages. (africabusinesscommunities.com)
Wind in its sails – The UK government has awarded a £3.7 mln grant to GT Green Technologies, in partnership with Carisbrooke Shipping and the University of Bristol, to install a wind-assisted propulsion system on the multipurpose vessel Vectis Progress. The grant falls under the Clean Maritime Demonstration Competition Round 4, funded by the UK Department of Transport. (shipandbunker.com)
ASIA PACIFIC
Credible and feasible – A study released Friday by the Australia PV Institute has called for what it said was much-need policy support to scale up Australia’s solar PV manufacturing capability, Renew Economy reports. The 30-page report released the first round of findings from the landmark A$1.2 mln Silicon to Solar Study, backed by the Australian Renewable Energy Agency. It said establishing manufacturing capability of 10 GW of poly-silicon, and 5 GW across the other steps of the value chain, such as ingots, wafers, solar cells, and solar panels, was “credible and feasible” with the right government policy support. The study notes that not all parts of the solar value chain come up equal in terms of manufacturing potential, but said there was keen industry interest in building up manufacturing capability at each step. It said government’s should balance factors including vulnerability/criticality, industry interest, competitive advantage, and economic benefits to help guide the strategy. The study’s authors emphasise the government should not try and compete with China in terms of manufacturing capacity, but said focus should instead be on how to reduce Australia’s dependence on China as the country shifts to 100% renewables and decarbonises industry.
The green Indian budget – India is set to provide viability gap funding to harness offshore wind energy potential for 1 GW in order to meet its target of achieving net zero emissions by 2070, country’s finance minister said on Thursday while unveiling the budget, Deccan Herald reported. The South Asian nation has also committed to achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. The minister said that the government has mandated phased blending of compressed biogas in compressed natural gas for transport, and piped natural gas for domestic purposes. The government also said that it will expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure. Further, it will also soon launch a new scheme of bio-manufacturing and bio-foundry to provide environment-friendly alternatives such as biodegradable polymers, bioplastics, biopharmaceuticals, and bio-agri-inputs. The government has also allotted funds for the rooftop solarisation scheme under which over 100 bln households will be able to generate up to 300 units of free electricity every month.
SCIENCE & TECH
Ready, study, go – World Wetlands Day marked the official opening of the Global Wetland Centre (GWC), established at the University of Copenhagen, in Denmark. The research centre aims to investigate further the role of wetlands in absorbing greenhouse gas emissions. Its work – harnessing digital modelling tools, artificial intelligence, and satellite data – will inform a set of recommendations to be presented to decision makers. Case studies will be conducted in Vietnam, Tanzania, and Norway.
AND FINALLY…
An envoy by any other name – In appointing John Podesta this week as his new ‘senior adviser’ for international climate policy, President Joe Biden has dodged the need to attain Senate confirmation, E&E reports. Podesta, who was previously involved in implementing the US Inflation Reduction Act, is effectively replacing John Kerry, who is stepping down from his role as special climate envoy. A recently-passed law mandates that special envoys are confirmed by the Senate, but Podesta’s appointment into this different type of advisory role bypasses what could be a difficult and messy appointment process. This strategic move has unsurprisingly sparked criticism from Senate Republicans, who view it as an executive power overreach.
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