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TOP STORY
WCI Q1 carbon allowance auction clears at new record
The February California-Quebec current vintage carbon auction marked the fifth consecutive auction of record high settlement prices, once again clearing at a premium to secondary market prices, according to government data published Thursday.
VOLUNTARY
FEATURE: The first movers looking to overcome trust issues and high costs in carbon removals market
With the window to net zero emissions by 2050 tightening, political and corporate attention is turning to the need to suck carbon out of the atmosphere in addition to slashing greenhouse gases.
Indian govt likely to adopt Verra standard for carbon offset projects in agriculture
The Indian government is currently reviewing Verra’s existing agriculture methodologies and will likely adopt the standard for voluntary projects offsetting emissions from its agriculture sector, a Verra official said Thursday.
Survey respondents tell Verra to get a move on integrating new approaches
Voluntary carbon stakeholders have pressed certifier Verra to work faster on adopting its various new initiatives and make sure they are aligned with parallel work being done to improve the integrity of the market.
Global carbon credit price gap to narrow in 2024, convergence continues between compliance and voluntary markets -analysts
Carbon prices will start to converge in 2024, while the gap between compliance and voluntary credit prices will narrow because more offsets will be included into regulated programmes, according to a report released Thursday.
Uruguayan timber company sells 2.2 mln carbon credits to project developer
A Montevideo-headquartered wood products company announced Thursday the sale of 2.2 million offsets to a London-based global project developer and credit provider.
Limited policy and manufacturing data impede construction sector’s ability to cut emissions -report
Carbon emissions in construction and manufacturing can be cut at least 10% through the use of lifecycle assessments (LCA), but a lack of policies, environmental data, and investor awareness are key barriers to wider LCA adoption, according to a survey of industry professionals.
US enhanced rock weathering company makes further inroads into CDR market
A fast growing start-up enhanced rock weathering (ERW) company has made further ground to crack the US farmers market.
Up to a third of forestation’s carbon removal efforts nullified by atmospheric feedbacks, study finds
The chemical and surface reflectivity feedbacks associated with forestation efforts could counteract up to a third of those trees’ CO2 removal benefits, according to new research.
EMEA
Key requirements for EU carbon removal methodologies will be outlined this year -Commission
The European Commission aims to outline the key aspects of the carbon removal methodologies for project developers that want to attain the EU’s certification framework approval by the end of this year, a Commission official said on the sidelines of a forum in Brussels on Thursday.
Asian fleet faces 20 Mt/year EU carbon bill once shipping is phased into EU ETS
The 4,000-strong Asian-flagged shipping fleet that keeps goods flowing from east to west will need to surrender around 20 million EU Allowances (EUAs) a year to cover its emissions once the maritime sector is fully included in the trading bloc’s Emission Trading System (ETS), research finds.
EU Commission’s chief opens up dialogue with clean industry
European Commission President Ursula von der Leyen is committed to discussing the bloc’s climate objectives with its clean technology companies, she said on Thursday, as the bloc’s industry struggles with high energy costs and rising inflation.
EU risks failing to meet net zero target without greater investment in new tech –report
Europe risks failing to meet its 2050 net zero target until the 2060s unless the bloc invests more in emerging technologies such as hydrogen and carbon capture, according to a new report.
Euro Markets: EUAs settle at 31-month low as sellers resume steady pressure amid weak sentiment
EU carbon allowance prices fell back on Thursday, settling at their lowest in 31 months and approaching recent long-term intraday lows, as earlier short-covering gave way to renewed selling and traders continued to speculate over where the bottom of the market may be found.
AMERICAS
WCI Markets: CCAs retreat before late tick up after record auction settlement results
California Carbon Allowance (CCA) prices jumped Thursday afternoon following the release of Q1 auction results after having lost momentum over the previous week amidst a dearth of regulatory news post the first quarter sale, while Washington Carbon Allowances (WCAs) saw modest weekly gains on even thinner volumes.
Canada needs bigger pot behind the guaranteed floor price for carbon credits price -report
Canada’s recent C$7 billion injection into its carbon contracts for difference (CCfD) programme, which guarantees a floor price for credits, is too meagre and has failed to assure investors, warns a Canadian climate policy firm.
Canadian trucking fleets scoop up emissions monitoring technology
An emissions monitoring firm announced Thursday demand to outfit several Canadian trucking fleets with its technology ahead of annual federal carbon tax increases in April.
ASIA PACIFIC
Japanese heavyweights, international development agency sign on for Indonesian energy master plan
A group of Japanese energy giants have finalised an agreement with their nation’s international development agency to work on what they call the ‘Master Plan for Energy Transition Management Project’ in Indonesia.
Indonesia ups already massive CCS potential estimate
Indonesia’s Ministry of Energy and Mineral resources has revised up its prospects for carbon capture and storage (CCS) by over 25%, it told an audience at an industry event this week.
Japan considers J-Credit scheme expansion to include carbon storage, removals
The committee overseeing Japan’s J-Credit programme is considering expanding the scope of the domestic voluntary scheme to encourage the development of carbon capture and storage (CCS) and carbon removal projects.
China to draft technical standards for CCUS development, carbon management
China is planning to formulate technical standards for the development of carbon capture, utilisation, and storage (CCUS) by 2025 as part of a broader roadmap to peak emissions from domestic industries by the end of this decade.
INTERNATIONAL
French insurers support “highly polluting” shale gas despite touting climate commitments, says non-profit
Two French insurance firms are bringing their recent climate pledges into question by providing coverage for numerous US LNG terminals linked to the environmentally contentious production of shale gas, an independent non-profit highlighted in a report Thursday.
UN credit union signs up to global initiative to standardise GHG accounting across financial sector
The UN Federal Credit Union (UNFCU) has joined the Partnership for Carbon Accounting Financials (PCAF), the global initiative aimed at standardising greenhouse gas accounting across the sector.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Renewable developer expects to generate surplus biodiversity net gain units
A developer of solar and wind projects would like to sell its surplus biodiversity net gain (BNG) units to a large developer in need of off-site units under England’s new legislation.
INTERVIEW: Mapping software key to attracting investments in biodiversity
Mapping technology can be a key contributor to scaling up investments in conservation, while recognising the role of Indigenous Peoples in landscapes, an executive of a California-based software company told Carbon Pulse.
Australian environmental groups call for land-clearing trigger in EPBC reforms
The Australian government’s proposed nature law reforms still include loopholes that would allow mass deforestation and must be closed, a coalition of environmental groups warned Thursday.
Improving returns from nature a key reason for investing -survey
Improving profits from assets related to nature and climate are attracting investors to the market, while biodiversity credits are tipped to mature this year, a survey has suggested.
Biodiversity Pulse: Thursday February 22, 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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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
INTERNATIONAL
Balance a bit better – Azerbaijan has named independent MP Nigar Arpadarai as its UN Climate Change High-Level Champion for COP29 in Baku later this year. The news follows the announcement earlier this year that Azerbaijan was proposing a 28-strong committee, entirely consisting of men, for the climate summit in Baku this winter. Christiana Figueres, former UN climate chief, called the proposals “shocking and unacceptable”, while 75 female leaders across business, civil society, and academia urged Azerbaijan’s President Ilham Aliyev to rethink the make-up of the committee in terms of gender balance. Following the backlash, Aliyev announced changes to the committee, adding one further man and 12 women to its membership. Ms. Arpadarai is now on board to help steer key negotiations and initiatives including advancing the five-year plan of the Marrakech Partnership, calling on non-state actors to build ambition on delivering net zero goals. (edie.net)
EMEA
Circle of life – Circular business models designed to foster recycling, repair, and reuse of material consumption can provide important additional GHG emissions reductions to help boost Europe’s climate mitigation efforts, says a European Environment Agency (EEA) briefing. European countries can do more to account for the potential emissions savings of their waste management and circular economy actions when reporting on climate policies and measures, the briefing found. The agency notes that achieving the EU’s 2050 net zero target will demand greater actions across all areas of the economy, including how materials are produced, re-circulated, and disposed of.
LIFE investments – The Commission is investing over €233 mln in 12 new Strategic Projects across the EU under the LIFE programme, which supports the implementation of the EU’s environmental and climate ambitions under the European Green Deal, a press release by the European Commission said. On environment, the projects will benefit marine ecosystems, improve air quality and water quality and management, as well support biodiversity projects. Regarding climate change, the funding will help Finland reduce its emissions from agriculture, heavy-duty transport and machinery, and phase out fossil fuels.
EU & Russia decoupled – The EU has adapted remarkably well to a decoupling that many would have considered impossible, with the trade of energy products between the two sides largely non-existent two years after Russia invade Ukraine, according to a report by think tank Bruegel. Russia has redirected oil exports to Asia, but has not been able to replace European demand for its gas. The EU has reduced its imports of Russian fossil fuels from a high of $16 bln per month in early 2022 to around $1 bln per month at the end of 2023, with the cut in oil imports accounting for the biggest chunk.
The toll on the Poles’ coal – Windy weather conditions resulted in a high share of Polish electricity coming from wind power in the mix during December 2023, according to data from Polish climate think-tank Instrat Energy. Wind supplied as much as 20% of the electricity share and more energy than lignite power plants for the first time in history. In December, 39.7% of electricity came from hard coal, 19.6% from lignite, 11.8% from gas, 4.6% from biomass, and 1.8% from other sources, according to Instrat’s report.
Wind power – The Nordic Investment Bank (NIB) and Pahkakosken Energia Oy have signed a 15-year loan to build a 186 MW onshore wind farm in North Ostrobothnia in Finland. The agreement amounts to €50 mln supported by the InvestEU programme and it is the first loan signed by NIB under this EU programme. The Pahkakoski wind farm will be located in the municipality of Ii in northern Ostrobothnia and consist of 30 turbines, expected to be completed by August 2025.
Danish goods – The EU Commission approved a €240 mln state aid scheme to support the production of goods considered ‘strategic’ towards a net-zero economy in Denmark, like wind turbines and electrolysers, as well as key components. The aid, to not exceed €150 mln per company, will be granted until the end of 2025.
ASIA PACIFIC
Comprehensive – The Australian Clean Energy Council (CEC) and KPMG have published a guide that sets out expectations for industry and details key considerations for engagement at each stage of a project’s lifecycle, it announced Thursday. The ‘Leading Principles: First Nations and Renewable Energy Projects’ guide puts into operation all 10 of the First Nation’s Clean Energy Network’s best practice principles for clean energy projects. CEC CEO Kane Thornton said the intention of the guide is to ensure respect for the rights of First Nations peoples and improved outcomes for communities. He noted that the renewables sector had identified the need for stronger engagement and relationships with First Nations peoples.
CCUS agreement – Two Japanese firms Mitsui and Chugoku Electric Power have entered into an agreement to study a carbon capture and storage (CCS) value chain between Malaysia and Japan. The value chain is set to be developed for a CO2 storage site offshore Malaysia that is being jointly developed by Mitsui, Malaysia’s Petronas, and France’s TotalEnergies, Offshore Energy reported. Under the partnership, the study will build a CCS value chain between the two countries on a commercial scale and will also explore the separation, capture, liquefaction, and temporary storage of CO2 emitted by a coal-fired thermal power plant operated by Chugoku Electric Power, transportation of liquefied CO2 to Malaysia, and storage of CO2 offshore Malaysia.
Land granted – Indian government-owned power company NTPC has signed a land lease agreement with Andhra Pradesh Industrial Infrastructure Corporation to set up the largest green hydrogen production facility in the country. Under the agreement, the central government will set up an Integrated Green Hydrogen Hub on 1,200 acres of land provided by the state government. The project will enable further conversion of green hydrogen to derivatives such as green ammonia and green methanol, for export purposes. The hub will also be responsible for the creation of technologies for electrolyser and fuel cell manufacturing and related ancillary industries.
AMERICAS
Lining compromise – The South Dakota state senate passed bill 201 with a 23-11 vote on Wednesday, which is considered a “compromise” carbon capture pipeline bill, local outlet Kelo reported. SB 201 provides new statutory requirements for regulating pipelines, allowing counties to impose a surcharge on certain pipeline companies, but strips local governments of power to control the location and safety set back zones around pipelines, leaving those powers with the state. Meanwhile, two other bills regarding the fate of carbon pipelines in the state – HB 1185 and HB 1186 – both passed the House floor last week and are now awaiting vote by the Senate Commerce and Energy Committee. Last year, the state’s Public Utilities Commission (PUC) denied permits to two CCS pipelines.
Ethanol ease – US Environmental Protection Agency (EPA) on Thursday said it will rescind its existing seasonal limit on the sale of higher-ethanol fuel in eight Midwestern states – Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin. Seasonal limits on E15 – gasoline that comprises 15% of ethanol in the mixture – are tied to emissions from evaporation, which decrease as more ethanol goes into gasoline. The eight states had requested the EPA to waive the current regulation to treat E10 and E15 equally, reasoning that air pollution could decrease as a result. However, the agency delayed the effective date until Apr. 28, 2025, citing concerns over insufficient fuel supply with an earlier effective date. Following the announcement, the Renewable Fuels Association called the decision a “double edged-sword for American consumers” for delaying implementation, which the group said creates uncertainty and confusion regarding the availability of lower carbon E15 this summer. Meanwhile, industry groups opposing the expansion of E15 say firms would be unable to adjust production quickly enough to supply the eight Midwest states this year.
Cap-and-rebate – Washington legislators are seeking to introduce a $200 rebate on utility bills for low- and middle-income households to account for the rise in fuel costs following implementation of the cap-and-trade programme, Crosscut reported Thursday. The rebate was proposed by Governor Jay Inslee (D) as well as included in legislative budget proposals released this week, and would be distributed as a $150 mln grant to the state’s utilities to credit their customers. However, GOP leaders criticised the timing of the proposed utility rebate, characterising it as a weapon to combat ballot measure 2117 to scrap the Climate Commitment Act (CCA) by signalling that there is no guarantee that future rebates will occur if voters choose to repeal CCA.
Spending limits – California’s Legislative Analyst Office (LAO) released several recommendations of the governor’s proposed 2024-25 budget plan for the roughly $2.3 bln cap-and-trade revenues that are committed to the state’s Greenhouse Gas Reduction Fund (GGRF). The LAO recommended the legislature adopt the governor’s overall strategy to use GGRF monies to backfill certain programmes, but suggested the government preserved funding for its highest-priority activities, that could represent a different mix from the governor’s proposals. Given the difficult fiscal environment expected over the next few years, the non-partisan policy advocacy also suggested the legislature consider reducing GGRF commitments to future years and revisiting them when it would have a better sense of available fiscal resources and highest spending priorities, thus avoiding spending expectations that California may not be able to fulfil. The LAO also recommended lawmakers closely monitor quarterly auctions to assess how GGRF revenues were materialising, against which annual GGRF spending levels could be set.
NYCI analysis data – The New York State Department of Conservation (DEC) and New York State Energy Research and Development Authority (NYSERDA) released Thursday a supplement data index supporting the analysis it presented of the impacts of the statewide cap-and-invest programme under development by agencies at a webinar on Jan. 26, 2024. The data index provides analyses supporting the agencies’ findings on the anticipated outcomes and distribution of benefits resulting from programme’s design, based on three possible price ceiling scenarios. The public development process for the programme, dubbed NYCI, is ongoing, with feedback on the analysis and pre-proposal outline requested to be received by Mar. 1, 2024.
VOLUNTARY
More money for less NOx – US agtech firm Pivot Bio announced Tuesday that it has paid over $6 mln to farmers who have implemented better nitrogen management practices via its N-Ovator insetting programme, launched in 2022. The programme compensates farmers for their sustainability benefits as a result of using Pivot Bio’s microbial nitrogen product, Proven 40. The programme connects farmers with company partners who look to reduce Scope 3 emissions, the largest transaction to date being the sale of 100,000 nitrogen credits to a global food and beverage company, the firm noted.
SHIPPING
Biofuel boost – Switzerland’s Varo Energy and independent oil trader Orim Energy are partnering to provide biofuels to shipping customers in the Port of Rotterdam and wider Amsterdam-Rotterdam-Antwerp (ARA) region. The deal supports the decarbonisation of the maritime sector in Northern Europe and plays into the wider targets set by IMO to reduce annual GHG emissions from shipping by at least 20% by 2030 and at least 70% by 2050, compared with 2008 levels. The current demand for fuel oil in the ARA region, Europe’s largest bunkering hub, is about 14 Mt per year. The market for B30, a blend of 70% fuel oil and 30% biofuels, is expected to grow rapidly by the end of the decade on the back of new EU regulations such as the shipping sector’s inclusion in the EU ETS. (Offshore Energy)
AND FINALLY…
For the lump lovers – Dodds Coal Mine, located near Ryley, Alberta, is one of the last standing coal retailers in Canada, CBC News reports. While there are still five active mines in the province, Dodds is the only mine that will sell to the general public. The province has largely transitioned away from the fuel source and the final two coal-fired electricity generating plants are scheduled to be converted to natural gas by the end of the year. At Dodds, coal costs C$50/tonne ($37) but the federal carbon tax brings the total to C$165/tonne. Buyers travel from all over the country – some of whom are unable to pay the costs of converting to another energy source – and the mine sometimes receives calls from interested buyers from China who look to purchase volumes beyond the mine’s capacity, a manager at Dodds told CBC. There are no plans to close Alberta’s remaining coal mines, according to Alberta’s Energy and Minerals Minister Brian Jean.
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