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TOP STORY
UK opposition party cuts billions from clean energy spending pledge
The British opposition Labour Party has rolled back on a pledge to invest £28 billion per year on green energy ahead of a general election due in 2024.
EMEA
FEATURE: Stakeholders call for clearer target on carbon removals and technology neutrality in EU
The lack of an explicit target for different carbon removal types in the EU’s new Industrial Carbon Management Strategy is holding back the industry from reaching its full potential, say industry stakeholders.
Double counting of emissions units needs to be addressed in EU’s carbon removal bill -NGOs
EU co-legislators are failing to adequately address how units generated through the Carbon Removal Certification Framework (CRCF) will be used and the potential for double counting or claiming of those units, NGOs warned in a letter to EU council negotiators this week.
EU delays sector-specific sustainability reporting rules until 2026
EU countries and MEPs have provisionally agreed to postpone by two years a deadline adopting sector-specific European Sustainability Reporting Standards (ESRS), giving companies more time to adapt to the first set of rules.
Demand rebound for EU steel not yet in sight, but CBAM will help once effective
Persistent downside factors have deepened a crisis in the EU steel and are set to curb what the ETS-covered sector hoped to be a demand rebound in 2024, while the Carbon Border Adjustment Mechanism (CBAM) may fix the problem in the future, according to market data published on Thursday.
Euro Markets: EUAs drop to 23-month low as selling momentum increases and sources await allocation news
European carbon prices fell to a 23-month low amid solid selling on Thursday as prices tested a boundary in their recent range, as energy markets eased on forecasts for above-normal temperatures, while some sources highlighted a lack of clear information from the European Commission on whether changes to the compliance calendar are being implemented on time.
Ghana expects to finalise first Article 6.2 transfer by Q3
The Ghanaian government plans to deliver its first batch of ITMOs under Article 6.2 of the Paris Agreement by Q3 2024, according to a report released Thursday.
Nigeria assembles policy team to move forward with carbon markets legislation -media
Nigeria’s vice president, Kashim Shettima, will inaugurate a committee on Thursday tasked with developing Nigeria’s Carbon Market Activation Plan, setting out a framework for voluntary carbon, Article 6, and ETS development in the country, according to local media.
TotalEnergies raises annual spend on carbon credits to $48 mln
French oil major TotalEnergies ramped up investment in carbon credits in 2023, it said in annual results this week, spending nearly $50 million on units across the year, while also posting a 300% year-on-year increase in purchases in the final quarter.
VOLUNTARY
Grievance mechanisms too limited in voluntary carbon market, Article 6, stakeholders argue
Community members claiming violations of ethical principles face limited support in both the voluntary carbon market and Article 6 of the Paris Agreement, according to community leaders and observers.
Researchers single out nine financial leaders on clean energy transition
Researchers have unveiled a scorecard to evaluate the efforts of major financial firms in aligning with net zero emissions targets by 2050, highlighting nine as transition leaders.
Expectations of carbon credit retirements topping 250 mln this year start to rumble
Expectations of a surge in demand for carbon credits are beginning to rumble after analysis points to retirement levels jumping two-thirds in 2024 to top 250 million.
ICROA revamps best practice code for the voluntary carbon market
Voluntary carbon accreditation body the International Carbon Reduction and Offset Alliance (ICROA) has refreshed its best practice code as it aims to keep pace with rapid changes affecting the market.
Microsoft-backed clean aviation startup launches commercial-scale carbon transformation unit -Bloomberg
A US startup has unveiled a commercial-scale carbon transformation unit as it aims to scale sustainable aviation fuel (SAF) production, as well as sell credits to corporates from the resulting mitigation, Bloomberg reported.
US registry to create protocol tackling methane from Argentine beef
US standards body Climate Action Reserve (CAR) is seeking stakeholder feedback for a protocol to tackle methane emissions from Argentina’s farm livestock, including its vast beef herd.
Registries should avoid “one-size-fits-all” approach in measuring leakage of voluntary forest carbon projects -preliminary study
A study by US researchers, currently awaiting peer review, revealed that forest carbon leakage varies across the types of projects, forests, and regions in improved forest management projects, and recommended registries change their uniform approach when estimating potential leakage of voluntary forest carbon projects.
ASIA PACIFIC
Japan issues first tranche of its ambitious $11-bln climate bond
Japan has issued the first instalment of its climate transition bond worth 1.6 trillion yen ($11 billion) to fund its emission reduction targets, UK-based non-profit and certifier Climate Bond Initiative confirmed Thursday.
Australian mining giants, steelmaker team up for clean steel pilot
Australia could begin work on a new, low emissions iron smelter by 2027 if an agreement announced Friday between the nation’s two largest iron ore miners and steelmaker is successful.
Australia Market Roundup: Senate committee votes down climate trigger bill, ACCU issuance rises
A multi-party committee in the Australian Senate has recommended the government reject a bill by the Greens party that would introduce a so-called climate trigger into the country’s environmental laws, whereby new projects would be assessed based on their climate impacts.
ASX reveals details on environmental futures products
The Australian Securities Exchange has released updated draft details on the three environmental futures products it plans to launch in July this year.
Corporates eyeing carbon credits in countries lined up for Article 6 trade with Singapore
Countries lined up to trade carbon credits with Singapore have seen an uptick of interest from corporates itching to find bargains to meet their carbon tax exposure, according to the head of one analysis agency.
Lack of ASEAN regulations seen as brake to Japan CCS ambitions
Japan’s government, related agencies, oil and gas companies, and industrial emitters see great hope in the saline aquifers and depleted oil and gas reservoirs across Southeast Asia as a permanent storage solution for a portion of their carbon emissions, the only problem is the region’s lack of regulations to support this, a webinar heard Thursday.
Singapore-based biochar developer closes Pre-Series A funding round
A Singapore-headquartered biochar project developer has raised closed its Pre-Series A funding round, bringing total investment secured to nearly $5 million.
AMERICAS
Canada yet to distribute C$2.5 bln in carbon levy rebates to small businesses, says non-profit
The federal government of Canada has not fulfilled its commitment to reimburse C$2.5 billion ($1.86 bln) in carbon tax rebates to small businesses in the provinces of Ontario, Manitoba, Saskatchewan, and Alberta, a Canadian non-profit said Thursday.
Study portends extreme weather to batter New York for rest of century
Changing climate will batter New York state throughout the 21st century with heat waves, heavy rain, flooding, stronger winds, and storm surges predicted to become increasingly frequent, technical chapters of a multi-year study released Thursday predict.
California environmental justice body pushes back against proposed LCFS amendments
The proposed amendments to California’s Low Carbon Fuel Standard (LCFS) fail to consider Environmental Justice Advisory Committee (EJAC) recommendations to mitigate environmental risks to communities caused by the policy, and stakeholders should be given more time to provide feedback, EJAC members told state regulator ARB officials at a meeting Thursday.
WCI Markets: WCAs slow rate of decline, CCAs sell off into auction
Washington Carbon Allowances (WCA) prices slowed their recent rate of decline with a sudden uptick to end the reference period, while California Carbon Allowances (CCA) picked up in volumes transacted heading into next week’s first auction of 2024.
INTERNATIONAL
Failure of Article 6 at COP28 should be a “wake-up call” for carbon market participants, warns expert
The failure to adopt key Article 6 texts at the COP28 summit in Dubai should be a lesson for those engaging in international carbon markets, an expert told a conference on Thursday.
ITMO carbon credit auction delayed to April
An auction for up to 10 million forward carbon credits from three host nations authorised for corresponding adjustments, tradeable units known as ITMOs, has been delayed until April, the sale’s organisers said Thursday.
SHIPPING
‘Polluter pays’ principle in EU ETS affecting shipping sector contracts, say experts
The extension of the EU ETS to shipping on Jan. 1 has sparked a new tug-of-war between carriers and charterers around the issues of cost pass-through and risk management, according to speakers at an industry webinar on Wednesday.
BIODIVERSITY (FREE TO READ)
PREVIEW: Migratory species summit seeks to raise efforts on GBF targets
New commitments to underpin the implementation of the Kunming-Montreal Global Biodiversity Framework (GBF) agreement will be at the core of the 14th Conference of the Parties to the Convention on the Conservation of Migratory Species (CMS) that starts next week, as efforts to halt and reverse biodiversity loss by 2030 are gaining momentum.
GEF Council boosts funding support for countries to accelerate high seas treaty ratification
The Global Environment Facility (GEF) Council has approved the initial guidelines to expedite the implementation of the Biodiversity Beyond National Jurisdictions (BBNJ) agreement, as signatory countries are lagging behind on the ratification process.
Pollination appoints UK-France biodiversity credit panel head as advisor
Climate and nature investment and advisory firm Pollination has appointed Dame Amelia Fawcett, co-chair of the International Panel on Biodiversity Credits (IAPB), as its senior advisor.
Climate Impact Partners, UK-based charity launch biodiversity conservation programme
Voluntary carbon offset provider Climate Impact Partners and Botanic Gardens Conservation International (BGCI) have partnered to launch a programme to finance biodiversity conservation.
Responsible investor group targets 40 major companies to raise engagement on biodiversity
A responsible investor group has announced it will engage 40 major companies worldwide as a part of an initiative on nature stewardship aimed at raising pressure on firms to disclose their nature-related impacts and help shape better environmental policies.
Biodiversity Pulse: Thursday February 8, 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
- Programme Officer, Climate Adaptation Climate & Nature Linkages, Fauna & Flora – Cambridge, UK
- Senior Associate/Associate Principal, CrossBoundary Fund for Nature, CrossBoundary – Nairobi/London/Dakar/Elsewhere
- 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)
- Legal Counsel, Verra – Remote (US)
- Forest Carbon Technical Advisor, Wildlife Conservation Society – Phnom Penh
- Environmental Markets Correspondent, Carbon Pulse – Latin America
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CONFERENCES
North American Carbon World (NACW) 2024 – Mar. 19-21, San Francisco: Attend NACW 2024 to learn, collaborate, and network with the North American carbon community and provide a stronger, unified force in advancing climate solutions. Hosted by the Climate Action Reserve, NACW will dive into major new policies, innovations, and developments that will shape and scale carbon markets and climate solutions with integrity and ambition. In addition to outstanding speakers, discussions, and insights, NACW provides premier networking opportunities with an active and engaged audience of leading climate and carbon professionals from all sectors of the economy. www.nacwconference.com
Carbon Forward Asia – Mar. 7-8, Singapore and Online: Our conference is anchored on relevant, current content shining the spotlight on opportunities and risks in the Asia-Pacific region. Organised by Carbon Pulse, Redshaw Advisors, and others working in the sector, the agenda will delve into pressing topics with regional and international leaders. With half of all ASEAN countries in the process of establishing domestic carbon markets, we’ll examine at the region’s emerging markets – both compliance and voluntary. And as China prepares to relaunch its CCER offset scheme, we’ll look at domestic demand and possible impacts on voluntary projects. The event will discuss what impact the EU’s Carbon Border Adjustment Mechanism (CBAM) will have. (On Mar. 6 there’s a separate CBAM workshop comprising everything you need to know). Conference attendees will also hear about CORSIA, Article 6, COP29, removals, nature-based solutions, and so much more. Carbon Forward Asia is also a meeting hub for corporates, investors, financiers, bankers, brokers, representatives from industrials, shipping and aviation, oil and gas, utilities, energy, traders, regulators and policy makers, carbon market analysts, project developers, exchanges, rating agencies, and NGOs. Register now!
Carbon Forward North America – June 11-12, Toronto: Join us in the Great White North to hear about the evolving carbon pricing and climate policy landscape in North America. Whether you are an emitter, investor, developer, or a new participant in any of the continent’s carbon markets – compliance or voluntary – Carbon Forward North America offers you the opportunity to gain knowledge on both present and future policy developments and market opportunities. Explore the chance to meet the right people or source the right solutions to help you enhance your business prospects or minimise your risk. Come meet the region’s world-leading carbon market experts, compliance players, government officials, investors, project developers, analysts, brokers, and other stakeholders. Agenda to be released soon. To express an interest in speaking or sponsoring, please email michelle@carbon-forward.com
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Back in black – 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
Exxon tussle – The CEO of the world’s largest sovereign wealth fund — Norway’s $1.5 trillion oil fund — has criticised ExxonMobil’s decision to sue two shareholders that filed a climate proposal against it, choosing to pursue the legislation even after they dropped the resolution. Shareholders Follow This and Arjuna Capital had submitted the motion calling on the company to set more ambitious emissions targets at its annual meeting. The two withdrew their proposal last week but the $400 bln-valued oil major insisted in proceeding with the case, claiming they could return with similar motions in future. Exxon Mobil says the petition is in breach of rules prohibiting repeat motions that fail to win a minimum number of votes and preventing investors from “micromanaging” businesses. Nicolai Tangen, CEO of Norway’s sovereign wealth fund, told the FT that he thinks the development worrisome and aggressive and is “concerned about the implications for shareholders rights”.
EMEA
Green Deal attack – At least six of the 18 members of the European Parliament in the French far-right party National Rally have signed or plan to sign a resolution calling for the Green Deal to be abolished, Euractiv reported. MEPs from all political groups received an email earlier this week from Belgian MEP Tom Vandendriessche, of the far-right party Vlaams Belang, asking that they sign his resolution. Vlaams Belang and National Rally are in the same European Parliament group, Identity and Democracy. The resolution argues that the Green Deal is negatively affecting the outlook for Europe’s agriculture sector.
Turning over a new leaf – French think tank Equilibre des energies (EdEn) has stressed the need for a European industrial strategy that is properly geared towards the climate and the economy in its recommendations for the next EU term of office (2024-2029), Euractiv reports. The next EU term of office following the elections in June, is an opportunity for renewal that should not be missed in helping to achieve Europe’s 2030 climate and industrial targets, EdEn says. The group argues for an end to the row between nuclear and renewable energies, and to act quickly in order to achieve the 2030 targets. It also calls for a focus on industry as the backbone of European decarbonisation and on electricity provision, together with ensuring a robust network for EV charging.
Steely outlook – ArcelorMittal, the world’s biggest steelmaker outside of China, has forecast a surge in demand for the alloy this year, pinning its hope on strong growth from India, Bloomberg reports. The Luxembourg-based firm laid out a positive view for the sector in results on Thursday, saying it expected apparent consumption of steel outside of China to grow by 3% to 4% in 2024. Indian growth is expected to be the key driver, with demand rising as much as 8.5% this year. EU stakeholders in the sector meanwhile, said on Thursday that a demand rebound steel was not yet in sight. ArcelorMittal South Africa also announced via Reuters that it would defer the closure of its long steel business by six months as the steelmaker pursues various initiatives with the government, state utilities, and workers. The company said there was constructive progress in the engagements, with several interventions that could salvage the business and save 3,500 jobs at risk from the closure of the unit.
Underground network – German energy company Uniper plans to operate salt caverns as large-scale hydrogen storage facilities, aiming for 250-600 GWh of capacity by 2030. It is currently analysing existing and potential new sites along the country’s planned hydrogen network and calls for a supportive regulatory and funding framework. Uniper is one of Europe’s largest natural gas storage operators, with over 80 TWh of underground storage in Germany, Austria, and the UK. It aims to repurpose some of its storage capacity and build new storage facilities as part of the hydrogen ramp-up to help hard-to-abate industries decarbonise. (Clean Energy Wire)
Green shipping in Cyprus – The Cypriot government this week approved updated green incentives for the country’s shipping sector, in line with the European Green Deal, Cyprus Mail reported. Among the measures is a potential 30% reduction in annual tonnage tax, in order to reward vessels that cut emissions. They are aimed at encouraging shipowners to invest in using cleaner fuels, improving infrastructure, electrifying ships, and boosting energy efficiency.
Northern capture – Aker Carbon Capture will integrate two of its Just Catch 100 carbon capture units into a power generation project in southern Sweden owned by Nordbex, a Swedish developer of modular carbon negative power plants. The feasibility study will see waste residues from local forestry and pulp and paper used as feedstocks for the gasification process of the new power plant to produce a clean and hydrogen-rich synthesis gas, which will be combusted in gas engines to produce 20-25 MW electricity for the grid in southern Sweden. Aker Carbon Capture will provide two of its carbon capture units to capture up to 200,000 tonnes per year of CO2 from the flue gas of both the gasification process and the gas engines, with the CO2 liquefied and transported by train to storage sites, energy-pedia.com reports.
More women in climate – The European Investment Bank Group has launched the Women Climate Leaders Network, joining forces with prominent female leaders from the private sector across all 27 EU member states, in an initiative to accelerate action on climate change. EIB research shows that women-led firms achieve higher environmental, climate, social and governance scores.
ASIA PACIFIC
Fad rages on – After Japan last year rolled out its voluntary GX scheme, a number of banks have scrambled to offer decarbonisation services to clients. Kitanihon Bank on Thursday became the latest to hop on the bandwagon, announcing it had formed an alliance with offset project developer Asuene and consultants Carbon EX to offer its corporate customers access to decarbonisation solutions, including carbon credits.
Energy efficiency – The Australian federal government has stumped up A$41.2 mln ($26.8 mln) in grant funding for SMEs to upgrade freezers, air conditioners, and other equipment to be more efficient in the second round of its creatively-named Energy Efficiency Grants for SMEs programme. Individual grants of A$10,000 and A$25,000 will be made available under the scheme, with funding distributed between the states and territories based on the distribution of SMEs across the country. The opening of applications will be staggered over five consecutive business days, starting from Feb. 22, 2024, the government said.
AMERICAS
Payday outlook – Canadian carbon project developer Base Carbon announced Thursday that it expects to generate approximately 2.1 mln credits from its Rwanda cookstove project in 2024, including some 620,000 credits in Q4. These would be the first credits issued from the projects, which the company originally said it expected in the second half of 2023. In a January webinar, Base Carbon CEO Michael Costa said the company had invested $8.83 mln at the end of Q2 in the project but had no offtake arrangement in place for the Rwanda credits, which would amount to them paying about $4.20 per credit. African cookstove projects certified by Gold Standard and Verra have been trading in recent months between roughly $5-9, but a January study found “pervasive over-crediting” among such projects. Regarding its Vietnamese household devices project, Base Carbon said it expects to receive approximately 6 mln credits for around $29.1 mln of anticipated revenue in fiscal year 2024, which would equate to $4.85 per credit. However, credits from household devices and cookstove projects are offered at around $6.50 as of Dec. 2023, according to AlliedOffsets. The project received its initial issuance in May 2023, which brought the company’s net income into the black from red in Q2 2023.
VOLUNTARY
SAF for credits – Tech startup Twelve has launched its commercial-scale carbon transformation unit to produce sustainable aviation fuel (SAF) for Alaska Air Group from captured CO2. The US-based company plans to generate carbon credits for customers such as Microsoft and Shopify. Twelve’s plant will run on hydropower and use CO2 captured from a nearby ethanol plant, which will be combined with water and fed through an electrochemical reactor, called OPUS, to turn into a synthetic gas that will be the basis of SAF. Twelve’s carbon transformation technology can be used to make products ranging from spandex pants to car parts, but it pivoted to focus on SAF after the announcement of the Inflation Reduction Act tax credits for SAF blending, carbon capture and utilization and hydrogen production.
Pain-free – Alcove is launching new accounting and invoicing tools for project developers in the VCM to help manage payment and delivery of carbon credits. The software integrates into a developers’ existing accounting software, including automated fulfillment of orders and automatic tracking of payment updates.
SHIPPING
Wind in their sails – French shipowner Louis Dreyfus Armateurs will install rotor sails from Finnish manufacturer Norsepower on three new vessels under construction and destined for charter to Airbus to transport aircraft components across the Atlantic. The vessels are being built with the option to use green methanol and to reduce emissions with the rotors installed. Each ship currently being built in China for 2026 delivery will have six 35-metre-tall rotors installed. The Louis Dreyfus orders will be the largest cluster of units on individual ships to date. (TradeWinds)
SCIENCE & TECH
1.5C breached – The past year has seen the highest global mean temperature on record, at 1.52C above pre-industrial levels, according to the EU’s Copernicus Climate Change Service. Last month was the warmest January on record globally – 1.66C higher than an estimated January average in pre-industrial years – and the the eighth record-setting month in a row. In Europe, temperatures last month varied from below average in 1991-2020 to above average. In eastern Canada, northwest Africa, the Middle East, and central Asia they were above average, while in western Canada, central US, and eastern Siberia they were below.
AND FINALLY…
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