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TOP STORY
FEATURE: Voluntary carbon insurers move in to de-risk the market
A nascent industry providing insurance for carbon projects and credits is gathering momentum, aiming to shore up the integrity of the voluntary carbon market by managing risk for buyers, project investors, and developers alike.
AMERICAS
Canada waters down its draft Clean Electricity Regulations following criticism
Canada’s environment ministry has watered down its proposed performance standard that is intended to mobilise the country’s electricity grid to hit net zero by 2035 following months of critical feedback.
British Columbia weakens stringency in output-based pricing system for large emitters
The British Columbia government sees less stringent emissions benchmarks for large industry under its Output-Based Pricing System (OBPS) set to take effect this spring, although certain aspects remain more stringent than other Canadian jurisdictions, documents published Friday showed.
US power plants cut CO2 emissions by 7% in 2023 amid coal-to-gas generation shift
US power plants cut their CO2 emissions by 7% year-on-year in 2023, as a shift from coal-fired generation to gas helped move the country closer to its clean electricity targets.
Maryland announces $90 mln to advance transportation and buildings electrification
Governor of Maryland on Friday unveiled a $90 mln initiative to support the state’s climate targets by expanding EV charging infrastructure, increasing electric school buses, and electrifying communal infrastructure.
Speculators continue profit-taking run across North American carbon markets, emitters build RGGI length
Regulated entities reduced length in California Carbon Allowances (CCAs) and Washington Carbon Allowances (WCAs), but added to RGGI Allowance (RGA) net holdings, while speculators continued to take profits across North American carbon markets, data published by the US Commodities Futures Trading Commission (CFTC) Friday showed.
VOLUNTARY
Major asset managers leave investor climate group
Two of the world’s largest asset managers, JPMorgan Asset Management and State Street Global Advisors, have announced their departure from an investor group focused on pressuring companies to address global warming, while BlackRock is stepping back as a corporate member, they said this week.
Biochar carbon credit prices to fall despite growing demand, say analysts
Prices of biochar carbon credits are slated to shrink over the next two years despite growing demand, mainly due to increasing supply and competition, according to analysts.
Carbon ratings agency finds ARB-eligible US forest project over-credited by more than double
A carbon offset ratings agency has found that an ACR-approved improved forest management (IFM) project registered with California state regulator ARB has been over-credited by more than double, largely for allegedly failing to exclude heavily sloped areas unlikely to be harvested.
Web3 company plots recovery in tokenised carbon credits amid ICVCM integrity drive
One of the largest Web3 firms in the voluntary carbon market is planning a rebound in tokenising carbon credits on the back of the ICVCM’s Core Carbon Principles (CCPs) stamp of high integrity.
Elephant forest activity correlates with high carbon storage, though causal relationship unclear -study
Elephant forest activity is correlated with higher levels of aboveground carbon (AGC) storage, according to a preprint of a new study, though the direction of the causal relationship, if any, remains unclear.
INTERNATIONAL
Swedish Article 6 carbon project in Ghana broadens scope to raise performance
The Swedish Energy Agency’s (SEA) Ghanaian partner has broadened the scope of its Article 6 mitigation project after realising that the original plans would produce insufficient emissions reductions, the CEO of the company told television media.
EMEA
EU approves billions in state aid to decarbonise ETS-covered German industrials
Brussels has approved billions in state aid for Germany’s energy-intensive industries covered by the EU ETS to help them reduce greenhouse gas emissions in production processes.
RWE posts 26% annual drop in EU ETS-covered fossil burn
German energy company RWE has reported a huge year-on-year decline in fossil power generation covered by the EU ETS, in preliminary output data for 2023 released this week, while its renewable electricity production surged.
Electrification will outweigh hydrogen in EU net zero energy use -report
Clean electricity will need to cover the largest share of the EU’s shift away from fossil fuels, while green hydrogen will be key in just a few hard-to-electrify sectors, according to research published on Friday.
Euro Markets: EUAs give up Thursday’s gains as short-covering demand evaporates, steady selling resumes
EU carbon permit prices gave up all of Thursday’s gains in the final session of the week as the previous day’s short squeeze came to an end and buyers stepped back, while the slow and steady selling that has characterised the market for the last two weeks resumed.
ASIA PACIFIC
NZ Market: NZU price sinks lower as tongues wag over March auction settings
The NZU price dipped lower on Friday as speculation continues about whether or not the government will adjust the confidential reserve price settings in the upcoming March auction in a bid to raise cash.
Australia to go “toe-to-toe” with US IRA, prime minister says
Australia plans its own climate infrastructure strategy similar to the US’s Inflation Reduction Act (IRA) to help meet its emissions reduction and renewable energy targets, although plans nascent.
Groups call on Philippines to restore degraded mangrove forests
A letter signed by multiple environmental groups has called on the Philippine government to restore mangrove forests at unproductive fishponds as mandated by domestic laws to mitigate the adverse impacts of climate change.
South Korea’s REDD+ promotion law to enter into force
A regulation supporting South Korea’s engagement in overseas forestry projects will become effective on Saturday, as Seoul seeks to secure more forest-derived carbon credits from developing countries.
BIODIVERSITY (FREE TO READ)
Global tree-planting initiatives drive massive biodiversity loss in African savannas, study finds
Misguided forest restoration initiatives are damaging ancient grassy habitats in Africa and beyond due to incorrect classification of ecosystems, putting biodiversity in an area bigger than France at risk, a study has found.
Pollination plans blended regenerative agriculture fund worth billions
Plans for a blended finance regenerative agriculture facility that could raise billions of dollars are underway, led by Pollination and the Green Climate Fund, Carbon Pulse has learned.
IUCN launches C$30mln marine biodiversity and gender project in Madagascar
IUCN has launched a C$30 million initiative focused on protecting marine ecosystems while supporting women, in collaboration with the government of Madagascar.
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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.
Next steps for the UK Emissions Trading Scheme – April 22, Online: Hosted by Westminster Energy, Environment & Transport Forum, stakeholders and policymakers will explore priorities for implementation and maximising the carbon market’s contribution toward the UK’s net zero strategy. Discussion will consider policy priorities, challenges for industries, and plans to expand the scheme to include domestic shipping and energy from waste. Sessions will also explore the auction reserve price, the forthcoming CBAM, and strategies to enhance the UK ETS’s efficacy while mitigating negative impacts. Book your place
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
French forests – The EU Commission has approved, under the bloc’s state aid rules, a €720 mln French scheme to support the forestry sector. The measure will contribute to the achievement of the objectives of the Common Agricultural Policy (CAP) by helping forests recover from fires, natural disasters, adverse climatic events, plant pests, infestations, catastrophic events, and climate change-related events, from 2023 to 2029. The scheme forms part of the forestry renewal plan of the France 2030 investment plan and will run until Dec. 31, 2029.
Spending cuts – The German government has axed two subsidy schemes for electric trucks and buses following a budget crisis at the end of last year, which has led to needed budget consolidation and a focus on essential investments. The cancellation applies to two programmes for climate-friendly commercial vehicles and for alternative drive systems for buses in passenger transport, according to a spokeswoman of transport ministry (BMDV). Projects already approved under the support scheme will still be financed, but new applications won’t be considered. (Clean Energy Wire)
Dimming the sun – Switzerland wishes to advance global talks on the controversial subject of solar geoengineering and is proposing creating the first UN expert group to examine the risks and opportunities of solar radiation management (SRM). The panel would be made up of experts appointed by member states of the UN’s environment programme (UNEP) and representatives of international scientific bodies, according to a draft resolution submitted by Switzerland and seen by Climate Home. Governments will negotiate and vote on the proposal at UNEP’s annual meeting set to start next week in Nairobi, Kenya. The proposal has been formally endorsed by Senegal, Georgia, Monaco and Guinea.
Steel’s struggle – The Czech steel industry is unprepared both technologically and financially for decarbonisation, holding back the bloc’s plans for a low-carbon transition, say experts. While the state also lacks green electricity, hydrogen, and other resources needed to meet green goals, say the experts polled by the Czech News Agency (CTK), Euractiv reports. Options for low-emission steel production — making steel from scrap in an electric arc furnace, rely on having enough scrap (of which there is a shortage) and accessing large amounts of electricity (not always readily available). A lack of access to hydrogen and a reliance on imports are holding back Czech steel mills from implementing hydrogen steel production before 2035, the report says.
ASIA PACIFIC
Intriguing challenge – Hyundai Motor Company Australia has distinguished itself from other major automakers by declaring its support for Australia’s New Vehicle Efficiency Standards, the Driven reports. The South Korean motor company released a statement Friday describing the new standards as an “intriguing challenge” and that the company would still have a range of vehicles it could sell into the Australia market. Hyundai said it would support the government’s preferred option of standards laid out in its policy paper currently open for consultation, but would look to change some minor aspects, which would be detailed in its submission to the government. Hyundai’s stance stands in contrast with lobby group the Federal Chamber of Automotive Industries who came out against the standards saying it would cost A$38 bln ($24.7 bln).
Nickel just critical – Australia has put nickel on its critical minerals list, according to a statement from Minister for Natural Resources Madeleine King. The move follows a series of mine closures in Australia, which has shaken Canberra, as the price of the commodity tumbles, driven in part by much cheaper supply coming out of Indonesia. The latest is BHP which is mulling shutting down Nickel West, and the associated nickel processing facility, which is Australia’s only one. Putting the battery mineral on the list will give miners access to billions of dollars in relief, she said Friday. “Since the List was updated on 16 December 2023, six operating nickel facilities have either announced reduction in operations or gone into care and maintenance,” a statement from her office said. “The decision to place nickel on the list means companies will have access to financing under the $4 billion ($2.6 bln) Critical Minerals Facility and critical minerals–related grant programmes such as the International Partnerships Program ($40 million).”
Santos’ chair Spence faces a challenge – Activist shareholder group the Australasian Centre for Corporate Responsibility has oil and gas company Santos in its sights, putting forward a motion to call for longtime chairman Keith Spence to step down, alleging he has “failed to deliver shareholder value”. Capital spend after a ‘pivot’ to growth in 2021 increased 150% but shareholder returns have sat at just 7%. It also took aim at a 2021 CEO bonus of A$6 mln ($3.9 mln) tied to achieving growth targets over returning money to shareholders. Santos and its larger peer Woodside Energy were in talks over a merger from late 2023 but the bigger company walked away from the deal earlier this month. The two parties could not agree on what they saw as a fair price for Santos shares.
Entering the family – India, which joined the International Energy Agency (IEA) as an association country, has requested to become a full IEA member as the world’s fifth-largest economy will play an increasingly significant role to address global energy and climate challenges. At the IEA’s recent ministerial meeting in Paris, the organisation’s chief said that India is an indispensable partner and the world cannot plan for its energy future without India at the table. India sent a formal request for full membership to IEA ministers October last year and the ministers have agreed to begin discussions, recognising the importance of the world’s most populous country.
Methane spot – A remote well in Kazakhstan was the site of one of the worst methane leaks ever recorded, according to new analysis shared with BBC Verify. As much as 127,000 tonnes of the gas are estimated to have escaped when a blowout started a fire that raged for over six months, with the environmental impact equivalent to driving more than 717,000 petrol cars for a year, according to the US Environmental Protection Agency’s Greenhouse Gas Equivalency Calculator. The leak began on June 9, 2023, when a blowout was reported during drilling at an exploration well in the Mangistau region, southwestern Kazakhstan, starting a fire that raged continuously until the end of the year. It was only brought under control on Dec. 25, 2023. Methane is more than 28 times as potent as carbon dioxide at trapping heat in the atmosphere, according to the US Environmental Protection Agency.
AMERICAS
Big Brazil bucks – The Brazilian Union for the Support of Municipalities (UBAM) launched Thursday the CarbonZERO project, which it said will enable the certification of carbon credits. The project aims to raise more than $500 mln, with revenues going directly to municipalities in the country. The project will certify credits with a CarbonZERO seal. UBAM said it has already formed a team of environmental specialists that will catalog municipal conservation and forest areas. Further details were not provided.
Green light for logging – Quebec is requesting the federal government to allow the local forestry industry to log trees in areas hardest hit by record-setting forest fires in 2023, Canada’s National Observer reported Friday. Ottawa has committed more than $3 bln to help provinces, territories, and organisations plant 2 bln trees by the end of 2031 as part of a national effort to reduce GHGs, but the programme does not fund trees used for harvesting. However, Quebec Natural Resources and Forests Minister Maite Blanchette Vezina said last year’s fire season had a significant economic impact on rural regions that depend on the forest industry, and has asked Ottawa to allow the trees to be harvested and used in the production of green building materials.
Improving climate action – California Assemblymember Damon Connolly (D) on Wednesday introduced Assembly Bill (AB) 2569, a bill that builds upon the 2006 California Global Warming Solutions Act that established the ARB as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. AB 2569 would signal the legislature’s commitment to enact subsequent legislation to improve California’s response to climate change.
LCFS pushback continues – More than 160 climate groups across 25 states sent a letter to California Governor Gavin Newsom (D) calling on him to direct the state regulator ARB to reconsider proposed rulemaking that “doubles down” on factory farm biogas, which is currently credited under the state’s Low Carbon Fuel Standard (LCFS). The letter asserts that the LCFS programme, originally developed as a tool to tackle pollution in the transportation sector, has been exploited by corporations to become the country’s “largest and most lucrative pollution trading scheme”. The draft rulemaking has received pushback from industry as well as environmental groups, with the former expressing concerns over growing credit surplus and cratering prices that current amendments are insufficient in addressing, while the latter oppose crediting avenues for fuel production from livestock and dairy manure. ARB has consequently postponed its public hearing initially scheduled for Mar. 21, 2024, and the regulator now instead plans to host a workshop in mid-April 2024 to discuss refinements.
VOLUNTARY
Rice work – Verra is inviting proposals from VVBs to review the draft of its ‘Methodology for Improved Management in Rice Paddy Production Systems’ in the VCS. The proposed methodology applies to projects implementing improved water management practices, such as alternate wetting and drying, in flooded rice systems to reduce GHG emissions. The methodology incorporates the new scientific findings and technologies for improving the management of rice production systems and the quantification of emissions from those systems, including the use of measurement, reporting, and verification guidance specific to rice production systems.
AND FINALLY…
Positive gone negative – New Zealand’s Christchurch Airport has ceased using “climate positive” in its marketing amid claims of misleading the public by not accounting for the significant emissions from flights, which constitute over 90% of its climate impact. Despite this, the airport asserts its offsets cover 120% of “controllable” emissions, excluding airline flights. The issue arose from a complaint highlighting the need for full disclosure of climate impacts, including third-party emissions. The airport has refocused on reducing direct emissions and influencing broader aviation sector decarbonisation, while addressing the use of the disputed phrase in its sustainability communications. (RNZ)
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