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TOP STORY

UN carbon markets proposals include REDD+ provisions as part of sustainable development tool

The Article 6.4 Supervisory Body, mandated to shape the rules governing carbon crediting under the Paris Agreement, will come together to discuss several procedural mechanisms and the role of a centralised registry at the end of February, as observers noted with surprise a developed appendix dedicated to REDD+ activities in one of the draft documents published ahead of the meeting.

EMEA

European Parliament committees adopt rules on corporate voluntary carbon credit use

Members of the joint European Parliament committees for the Internal Market and for the Environment adopted on Wednesday new rules regulating the use of carbon credits by EU companies.

European Commission ‘not worried’ by falling carbon price, says senior official

The European Commission is “not too worried” about the tumbling price of carbon allowances, Kurt Vandenberghe, director-general of DG CLIMA, told a virtual event on Wednesday.

Fossil fuels in the dock as EU petitioners compare them to tobacco lobbies

Fossil fuel companies should be held accountable for their contribution to inflation, and kept at arm’s length from policy making, just like tobacco lobbyists, according to groups heard on Wednesday by the European Parliament’s Petition committee.

Euro Markets: EUAs snap 5-day losing streak amid short squeeze while fund manager sees further weakness

European carbon prices snapped a five-day losing streak on Wednesday, rising on the back of rallies triggered by weekly position data that showed speculative participants had increased their net short position to a new record, even as a well-known fund manager said prices could fall as much as 35% below current levels.

UK consultation looks at what carbon storage data should be publicly available

The UK’s North Sea Transition Authority (NSTA) on Wednesday opened a consultation looking at the kind of carbon storage information that should be made publicly available and on what timescales, in a move that it says will support project planning and decision-making.

ASIA PACIFIC

No surprises in Indonesia election as Prabowo claims victory

Indonesia’s former defence minister Prabowo Subianto declared victory late Wednesday in Indonesia’s presidential election, after unofficial tallies showed he had secured a majority of the votes.

Indonesia not on track to hit renewable targets -report

Indonesia’s uptake of renewable energy is too slow and the country is unlikely to meet its own targets, according to a report from a think tank released Wednesday.

INTERVIEW: Australia’s Garnaut urges Labor not to bow to “inappropriate political interference” on Safeguard Mechanism

Australia would be a “banana republic” if it bowed to international pressure from its trading partners over its climate policies, such as the Safeguard Mechanism, Professor Ross Garnaut has told Carbon Pulse.

SK Market: South Korea sells 62% of KAUs offered in February auction

South Korea on Wednesday sold close to two-thirds of the CO2 allowances up for sale at its monthly auction, which cleared below the secondary market but up compared to last month’s sale.

Indian developer lays foundation for biomass fuel plant to help reduce GHG emissions

India’s largest carbon offset developer has inaugurated the first of several planned biomass fuel plants in the country to promote clean energy and mitigate greenhouse gas emissions, it announced Wednesday.

Japanese firm offers carbon credits at the pump

A Japanese petroleum supplier is offering its corporate clients to buy carbon credits to offset their petrol and diesel oil.

AMERICAS

Oregon Clean Fuels Program sets new record high for credit generation in Q3 2023

Oregon’s Clean Fuels Program (OCFP) generated a record-high volume of credits for the second consecutive quarter, growing the programme’s credit bank amid cratering secondary market prices, according to state data published Tuesday.

New Mexico legislators approve clean transportation fuel bill

A New Mexico bill to implement a clean fuel standard by mandating a reduction in transportation fuel carbon intensity (CI) passed the legislature on Tuesday and now awaits approval by the governor.

California offset issuance trails January levels

California compliance-grade offset issuance over the last three weeks fell to almost 45% below January’s distribution, with units offering direct environmental benefits (DEBs) to the state also trailing the prior month, according to data published by state regulator ARB on Wednesday.

US climate tech firm targeting methane receives $10 mln investment

A climate solutions company specialising in technology to cut methane emissions and deliver affordable zero-emissions hydrogen has closed on a $10 million investment to further develop its offering.

Carbon capture tech company eyeing $7-9 mln private fundraising

A carbon capture technology company is looking to raise capital via a private placement of shares to fund expansion into the US and develop its technology further.

VOLUNTARY

Land-based solutions lead near-term CDR promise, but variety needed to meet climate goals -study

Land-based measures show the highest potential to support CO2 removal (CDR) in the near term, but the world’s climate targets will not be met without the deployment of a range of such solutions at a multi-gigatonne scale, with ocean-related technology holding the most large-scale promise long term.

Swiss carbon removals startup inks offtake deal with Microsoft

A Switzerland-based carbon removal developer has entered into an offtake agreement to provide Microsoft with 27,600 tonnes of durable carbon dioxide removal (CDR) over the course of six years.

Gold Standard consults on waste management voluntary carbon methodology

Voluntary carbon certification body Gold Standard has opened a consultation on a methodology for crediting on-site waste processing to avoid methane emissions caused by organic matter being sent to landfills.

Corporate clean power purchase deals reached a new high in 2023 -report

Companies worldwide set a new record in publicly announced solar and wind energy contracts in 2023, driven by improving economics in key regions like Europe and imminent company clean energy goals, according to BloombergNEF (BNEF).

INTERVIEW: Premium cost of building low-emission gas power plants offset by CO2 sales, says developer

A developer of gas-fired power plants able to capture CO2 from the combustion process says that the premium cost of the facilities will be offset by the sale of CO2 for industrial applications.

Canadian carbon project developer to pilot Netherlands DAC firm technology

A Montreal-based carbon removal project developer announced partnering with another European direct air capture (DAC) company on Wednesday, to pilot new carbon removals technology in Canada.

INTERNATIONAL

IEA members add precision to talk of transitioning away from fossil fuels

Reaching net zero emissions by 2050 means that no new unabated coal plants should be built and no new long lead-time conventional oil and gas projects are needed, the International Energy Agency’s 31 member countries said on Wednesday.

INTERVIEW: Guarantee company aims to break “psychological barrier” to green investments in poor countries

The world’s first climate-focused guarantee company is looking to transform the perception that green investments in the developing world are risky – by encouraging the international private sector to jump in, and helping domestic borrowers secure better financing.

Crossing Amazon tipping points risks adjacent forests, permanent degradation -study

By 2050, some 10-47% of the Amazon rainforest will be threatened by increased disturbances, endangering adjacent forests through meteorological feedback loops and risking permanent degradation, according to a study published Wednesday.

BIODIVERSITY (FREE TO READ)

Biodiversity enhancement tool poised for launch has “sizable” waiting list

A tool for guiding landowners on how to improve biodiversity on their property has attracted significant interest from potential customers, beyond those involved in the UK biodiversity net gain scheme, an executive has said.

Fair trade company secures inaugural deal under Brazilian green finance programme

A US-headquartered food and beverage company has become the first firm to secure financing from Banco do Brasil as part of a newly-announced programme aimed at advancing the export chain of nature-friendly, low-carbon products from Brazil.

Three-quarters of critical habitats in the Americas miss the GBF target -study

As much as 75% of habitats in the Americas are under protected, falling below the Convention on Biological Diversity’s (CBD) target of 30% preservation due to monitoring flaws, researchers have found.

COMMENT

ECOSYSTEM MARKETPLACE – Shades of REDD+: Two clashing visions for Article 6

To get bridge controversies around Article 6 it may be worth to take a step back and evaluate the different expectations for an effective role of carbon markets that nourish the clashing positions. Is the priority controlling all aspects of the implementation of Article 6 or to enable countries to define the rules that enable large-scale investments into mitigation?

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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)
• Environmental Markets Correspondent, Carbon Pulse – Latin America

Or click here to see all job listings

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CONFERENCES

Carbon Forward Asia – March 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!

North American Carbon World (NACW) 2024 – March 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

European Climate Summit – April 16-18, Florence: To kick off its annual regional climate summit series this year, IETA looks forward to welcoming delegates to its flagship ECS2024 event, taking place in Italy. ECS comes at a key inflection point for the region’s carbon market. How will the European carbon market evolve in its next phase, which starts in 2031? Around the world, carbon markets are emerging at the fastest ever pace, with new emissions trading systems being developed from Brazil to Vietnam. More markets may mean more opportunities for international cooperation and linking, and some of these could come to Europe. The health of the voluntary carbon market is also a hot topic this year, as the market works to overcome challenges. Environmental integrity and robust quality assurance are at the top of everyone’s mind, and IETA’s ECS2024 will address these issues as well. To register, simply click HERE to join as a delegate. In-person event.

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

EMEA

Clean trucks and buses – The European Parliament’s transport committee on Wednesday approved a series of measures to change the weight and dimension limits for trucks and buses involved in international road transport, with a view to greening the sector. The proposal would increase the maximum weight and length of zero-emission trucks by 4 tonnes, to compensate for the space and weight of batteries or hydrogen cells and provide additional loading capacity. The bigger loading capacity will make zero-emission trucks and buses more competitive than conventional alternatives, providing an incentive for the industry to switch, MEPs said. The committee’s draft position will now go to a vote in the Parliament plenary, possibly in March. The file is expected to be finalised after the European elections in June.

Sharing the burden – France would like the British government to take on a greater share of the cost of developing new nuclear reactors in the UK, the country’s Finance Minister Bruno Le Maire has said, as reported by inews. The mounting costs are proving controversial with French taxpayers as EDF, the developer of Hinkley Point C nuclear plant in the UK, is state-owned. However, Downing Street last month said the UK has no plans to offer loan guarantees to the project. The Hinkley plant in Somerset, under construction since 2016, is now expected to be finished by 2031 and cost up to £35 bln, while EDF is also seeking funding for the Sizewell C project in Suffolk.

CBAM collab – Egypt is keen to enhance cooperation with the EU on applying the Carbon Border Adjustment Mechanism (CBAM) to advance its green transition and would like to develop a clear roadmap in line with national priorities and social considerations, Environment Minister Yasmine Fouad has said. Fouad’s comments came during her meeting on Tuesday with Director General for Taxation and Customs Union of the European Commission Gerassimos Thomas and his accompanying delegation, as they discussed opportunities for joint cooperation in realizing the CBAM.

Price perfection – Bulgaria is calling for a fixed price for the construction of two new Westinghouse AR-1000 nuclear reactors that shouldn’t exceed $14 bln, as per an intergovernmental agreement on nuclear cooperation between itself and the US. The new reactors will be built on the banks of the Danube, where the Kozloduy nuclear power plant is located, and will operate in parallel with the two Russian reactors until 2050. After 2050, the old Russian reactors will be decommissioned, Euractiv reports. The investment will mark the largest in scale for the past 50 years in Bulgaria, which is expected to reach a GDP of just over €100 bln this year.

Renewal agreement – Air Liquide and Dow have renewed their industrial gas supply arrangement at the Stade chemical production facility in Germany, one of Lower Saxony’s largest chemical production facilities. Under the deal, Air Liquide will provide industrial gases to Dow while investing €40 mln in upgrading its assets to improve efficiency and reduce CO2 emissions. The company will upgrade existing production units and add a new CO2 recycling solution, resulting in a 15% gain in energy efficiency and a reduction of 15,000 tonnes of emissions per year. The renovation is expected to be completed by 2024. This investment aligns with Air Liquide’s plan to lower carbon emissions by one-third by 2035.

Terse discussion – Recent warnings by the head of Belgium’s central bank that the green transition will make Europe poorer have been rebuked by the co-president of the Greens/EFA European parliamentary group, Philippe Lamberts, Euractiv reports. “If we start saying that basically we cannot afford to invest for [our own] survival then I believe that we need to have a discussion with more serious people,” Lamberts rebutted. [That] Europe should engage full-on in the green transition to me cannot be questioned. It’s a matter of environmental and economic survival.” It is rather the absence of a green transition that will impoverish Europe and its citizens, said Jean-Marc Nollet, co-president of Belgian environmental party Ecolo.

ASIA PACIFIC

Powering through – As of Feb. 11, electricity generated by renewable sources in Taiwan has surpassed power generated from coal for the first time, according to the state-owned Taiwan Power Company. Electricity produced from solar and wind totalled more than 10 GW making up for over 52% of all power generated at the time, out of which solar power accounted for over 8 GW, while the remaining 2 GW was contributed by wind, Taipei Times reported. The increase in power generated from renewables has given the power company an opportunity to conduct maintenance activities on its coal and nuclear power plants to meet the peak electricity demand in summer, it said. Taiwan intends to generate about 15% of its power from renewable sources by 2025.

AMERICAS

A carbon tax rebate by any other name would not smell as sweet – The Canadian government on Wednesday unveiled a new branding strategy for its federal carbon tax to highlight that it offers rebates to the majority of Canadians. The move is aimed at providing clarity to misinformed or unaware Canadians that the federal ‘backstop’ tax on fossil fuels is revenue-neutral, while also countering criticism from opposition parties. The tax, introduced in 2019 to encourage the shift towards clean energy, has been misunderstood, Ottawa says, with many Canadian taxpayers appearing to not know that they receive quarterly payments through the programme. To improve clarity, the payments will now be named the Canada Carbon Rebate instead of the Climate Action Incentive Payment. Environment Minister Steven Guilbeault said the new name would be easier to understand and remember. The government asserts that 80% of Canadians benefit more from the rebates than what they spend on fossil fuels. However, the policy faces opposition from the Conservatives and some NDP lawmakers, who argue it increases living costs.  The Tories, who currently lead in opinion polls, have vowed to eliminate it if elected. In response to concerns, Liberal PM Justin Trudeau recently made a three-year tax exemption for home heating oil in Atlantic Canada – a controversial ‘carve-out’ seen to help alleviate pressure from Liberal lawmakers in the region.

LCFS update – California regulator ARB has postponed its public hearing initially scheduled for Mar. 21, 2024 considering amendments to the Low Carbon Fuel Standard (LCFS). The decision was made in light of “substantial” feedback regarding the proposed regulatory package, and the regulator plans to host a workshop in mid-April 2024 to discuss refinements instead. However, 45 day comment period, scheduled to close Feb. 20, 2024, will not be extended. The proposed amendments have not been well-received by market participants and environmental justice communities alike, with the former citing a growing credit surplus and cratering credit values that current amendments are insufficient in addressing, while the latter remains concerned with over-crediting, biofuels, and factory farms associated with the programme.

LCFS troubles – Clean fuel standards are growing across the US and Canada, but a rapid rise of renewable diesel production and import has impacted the success of these programmes, participants at a webinar hosted by OPIS heard Wednesday. Credit surplus from low carbon fuel schemes in California and Oregon have reached record highs, and credit prices have significantly declined in both states. The session also provided an overview of the current state of sustainable aviation fuel (SAF), detailing that SAF production capacity needs to increase to some 118 bln gal (446.7 bln litres) per year to achieve net zero emissions by 2050. SAF production 2024 is expected to reach some 500 mln gal in 2024, fulfilling some 0.5% of the global jet fuel demand, the webinar informed.

It’ll make sense eventually – California Assemblymember Jesse Gabriel (D) introduced AB 2331 to California legislature on Monday, which would enact future legislation to clarify AB 1305, a law that imposed disclosure requirements for voluntary carbon credit sellers and buyers that make net zero, carbon neutral, or other claims associated with their carbon offset purchase. AB 1305 took effect Jan. 1, 2024 but remains mired by ambiguity surrounding the application of the rules, implementation requirements, violation calculations, and even the effective date of the law. The question of staff capacity to enact these laws remains uncertain particularly as California’s recent budget paused spending on staff costs to implement climate laws SB-253 and SB-261 for companies doing business in California, which compels entities with annual gross revenues of over $1 bln to disclose full Scope 1-3 GHG emissions and entities with annual gross revenues exceeding $500 mln to report on climate-related financial risk, respectively.

New York no – New York is considering divesting $1 bln from major oil companies, with State Comptroller Thomas DiNapoli reviewing the state’s pension fund investments, reported Inside Climate News on Tuesday. The move will be the most important in a multi-year review by DiNapoli, who has launched a sector-by-sector assessment of the state retirement fund’s fossil fuel holdings. DiNapoli promised in 2020 to divest from those that failed to meet “minimum standards” for climate-related risks. New York has one of the largest state pension funds in the US, but already has limited investments in coal firms and smaller oil companies. An announcement on a decision is expected within weeks, and some advocates for fossil fuel divestment say New York could set an example for other states. However, the deliberation in New York comes as banks and institutional investors are facing a conservative backlash nationally against efforts to limit fossil fuel financing, with Bank of America, for example, recently turning back its earlier pledge to not finance new coal mines, coal-burning power plants, or Arctic drilling projects.

Heavy hitter – BIOFIX BIC, a Colombian-Brazilian project developer and credit seller focused on REDD+ projects, has announced the appointment of Carolina Jarro Fajardo as new CEO. Jarro has held high-profile roles in the public sector such as Deputy Director of Management and Conservation of Protected Areas in Colombia’s National Natural Parks and management positions in the Environmental Secretariat. In post, she achieved early fulfillment of Colombia’s goal to protect 30% of marine ecosystems, the expansion or declaration of 11 new protected areas managed by National Parks, and design and initiation of the 2021-30 policy for the National System of Protected Areas.

VOLUNTARY

Seal of approval – SealsQ, a semiconductor and post-quantum technology firm announced a partnership with software company CarbonMinus to employ blockchain technology for carbon offsetting within the IoT industry. The companies said their collaboration will see the integration of SealsQ’s blockchain-based Sealcoin token into initiatives aimed at reducing CO2 emissions, aiming to enhance transparency and efficiency in the carbon credit market. The partnership seeks to enable businesses to better manage their energy use and resource dynamics. The firms claimed that the use of Sealcoin will introduce a new level of transparency and authenticity to carbon trading, while addressing the IoT industry’s challenges with its energy consumption and carbon footprint.

DAC deal – Milwaukee-based automated machinery manufacturer Rockwell Automation announced Wednesday a deal with US carbon removals company 1PointFive to purchase credits from the latter’s DAC facility under construction in Texas, known as Stratos. The number of credits purchased through the agreement were not disclosed. Nevertheless, Rockwell said its desire to demonstrate environmental stewardship and its net zero transition goal were the motivations behind the purchase. In January, 1PointFive also signed purchase agreements with Singapore-based commodity trader Trafigura and global consulting giant Boston Consulting Group, also for credits from the Stratos DAC plant. The plant is currently under construction with a plan to be operational in mid-2025, and is expected to be the biggest in the world with an annual CO2 capture capacity of 500,000 tonnes.

INVESTMENT

Alterra’s ambition – More information has been revealed about the $30 bln climate investment fund Alterra, which was launched at COP28 with an initial commitment from the UAE. Alterra seeks to mobilise $250 bln globally by 2030 into climate investments in the private markets in developing economies, said CEO Majid Al Suwaidi yesterday at the World Governments Summit. Alterra has a dedicated investment focus on the energy transition, industrial decarbonization, sustainable living, and climate technologies.

SCIENCE & TECH

V for Vanadium – Researchers at Oregon State University say they have made a notable discovery in the field of direct air capture (DAC) technology, highlighting the potential of vanadium, specifically vanadium peroxide molecules, as an effective material for carbon scrubbing due to its optimal reactivity with CO2. This advancement could be seen as a significant step in improving atmospheric CDR technologies. While carbon filtering facilities are still in their early stages compared to more established emissions mitigation technologies at sources, such as power plants, experts say both are crucial in combating climate change. The research, funded by the US Department of Energy, demonstrated that vanadium peroxide molecules, supported by alkali cations for charge balance, can effectively bind CO2. This process benefits from vanadium’s ability to release captured CO2 at relatively low temperatures, potentially reducing the energy and cost requirements of carbon capture processes. The findings are published in Chemical Science and result from a collaboration with Pacific Northwest National Laboratory and the University of Oregon.

AND FINALLY…

Roses are dead, violets are blue – A new report by Christian Aid reveals the significant impact of climate change on the cultivation of roses across major producing countries in the global south. The study highlights that nearly 60% of exported roses originate from regions increasingly vulnerable to extreme weather conditions, including Kenya, Ethiopia, Uganda, Ecuador, and Colombia. These areas, vital for rose production, face challenges such as erratic temperatures, extended droughts, and water scarcity, exacerbated by climate change, threatening the future of rose growing, the report said. East Africa, a major source of roses, already grapples with severe droughts made more likely by climate change, while South America’s rose-growing areas face threats from rising temperatures and glacier retreat. In the UK, the world’s fourth-largest importer of roses, climate change has led to roses flowering earlier and increased susceptibility to diseases, impacting popular varieties. The report calls for urgent government action to cut emissions and support adaptation efforts for rose growers to safeguard millions of livelihoods dependent on this industry. Horticulturists, florists, and climate experts express concern over the findings, emphasising the need for sustainable practices, protection of biodiversity, and the promotion of renewable energy to mitigate the impact on rose cultivation and ensure the industry’s future.

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