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TOP STORY

CBAM to have limited impact on emissions, but greatly affect trade for developing Asia, ADB says

The roll-out of the EU’s carbon border adjustment mechanism (CBAM) will help address the risk of carbon leakage, but it will have limited impact on global emissions reductions while significantly reducing exports into the European bloc from some Asian sub-regions, the Asian Development Bank (ADB) has found.

EMEA

Germany launches strategy to capture and store CO2

Germany’s economic and climate action minister Robert Habeck announced the launch of the country’s first carbon management strategy, as well as a proposal to update CO2 storage laws, at a press conference in Berlin on Monday.

EUA prices oversold, may rally more than 20% by year-end -analysts

EUAs are currently oversold and look set to rally more than 20% by the end of the year, according to analysts, who say the market’s strong correlation with natural gas has dragged carbon permit prices down more than is justified by fundamentals.

Euro Markets: EUAs post biggest gain in a month as analysts eye price consolidation

EU carbon prices jumped on Monday, posting their biggest daily gain in a month, as several analyst reports highlighted that the year-to-date price decline appeared to be running out of momentum, triggering some short covering that drove the market higher, while energy markets were all firmer.

Italian oil major’s big plans to develop biofuels in Africa falters -NGO

Italian oil giant’s plans to produce thousands of tonnes of biofuel crops in Africa is falling short, an NGO’s study reveals.

EU lawmakers to rubber-stamp nature restoration bill amid green policy backlash

Tuesday’s vote by the full European Parliament’s house on a bill to restore at least 20% of the bloc’s land and sea areas by 2030 is expected to be a ‘rubber-stamping’ exercise, although farmers’ discontent with EU green policies, red tape, and lack of funding has been tearing Brussels apart.

VOLUNTARY

VCM Report: Second oil major makes a splash in retirement of voluntary carbon credits

A huge number of African REDD voluntary carbon credits were retired by an oil and gas major last week, but spot activity was thin and trading generally lacklustre as prices kept steady.

Consultancy becomes first to make highest integrity voluntary carbon credit claim

An international consultancy has become the first voluntary carbon credit buyer to make a claim for the highest grade available under the Voluntary Carbon Market Integrity (VCMI) initiative’s code for offset use.

Academics call for organisations to shift to carbon removals in offsetting strategies

Companies should shift towards carbon removals with durable storage in their credit-buying strategies as opposed to credits for emissions avoidance or reductions, say academics in updated offsetting guidance.

Egypt pins down legal status of voluntary carbon credits as it reveals regulatory framework

Egypt has defined the legal status of voluntary carbon credits to be traded in the North African country ahead of moves to harmonise a standard set of principles internationally.

Indigo Ag doubles carbon credit supply in third crop, announces new partnership to boost voluntary buyers

US-based agtech firm Indigo Ag has completed its third carbon crop, more than doubling its post-buffer pool offset supply, it said Monday, while also announcing a new partnership that is expected to expand its network of credit buyers.

INTERNATIONAL

EU-Mercosur trade deal infringes upon UN climate treaties, breaches bloc’s climate law -analysis

A trade deal between Brussels and four members of the South American Mercosur economic group would compromise UN agreements and EU climate law, according to a legal analysis issued Monday.

EU climate envoy ‘regrets’ Article 6 outcome at COP28

Tony Agotha, the EU special envoy for climate and environment diplomacy, has expressed disappointment with the outcome of UN negotiations on carbon markets after they broke down at the COP28 climate summit in Dubai last December.

AMERICAS

One size does not fit all for carbon pricing in Latin America, say experts

Some carbon pricing policies are better suited than others for the different countries in Latin America, according to experts, as the region branches out from purely voluntary models.

California kicks off 2024 with record low emissions amid high gas-powered generation

California electricity sector CO2 emissions continued to dip to record lows in January, even as natural gas maintained its historically high share of the state’s energy supply, data published Friday showed.

RGGI Market: Prices hold near highs as market participants look ahead

RGGI Allowance (RGA) prices held near their record highs on thin volume over the past week, as participants anticipated more movement ahead of the Q1 auction next month.

British Columbia’s budget 2024 sees increase in carbon rebate amid reduced carbon tax revenues

BC’s ministry of finance anticipates reduced revenues from the provincial carbon tax but will allocate more funding to quarterly rebates for eligible residents, according to government documents published Thursday.

ASIA PACIFIC

Australian carbon exchange will not impede OTC market, Clean Energy Regulator says

A range of new carbon market platforms and products promises to deliver increased “liquidity, depth, and scale” to Australian participants, but will not come at the expense of over-the-counter markets, the Clean Energy Regulator told a webinar Friday.

FOI documents confirm Woodside plans for CCS at vast gas field

Woodside Energy plans to reduce the carbon footprint of its huge Browse gas project by 47% and cut to near-nothing the use of carbon offsets, formerly its favoured way to meet its Australian climate obligations.

Australian gas giant signs on green steel hopeful for CCS

Santos has signed its first local customer for its upcoming onshore Moomba carbon capture and storage (CCS) project in the South Australian desert, after a slew of non-binding agreements with Japanese conglomerates last year.

SHIPPING

Oil majors join initiative to tackle ‘methane slip’ from fuelled vessels

Two oil and gas majors and a gas shipping company have joined an initiative aimed at improving technologies to measure and mitigate methane emissions from the maritime sector, in an effort to reduce pollution from the use of  LNG as a fuel.

BIODIVERSITY (FREE TO READ)

Over 60% of the most-at-risk companies are failing to implement deforestation policies

Most of the companies driving tropical deforestation are failing to address their impacts, with one-third lacking commitments and almost two-thirds showing little evidence of implementing them, a study has found.

Nestle sets new targets for protecting nature and banning deforestation-linked cocoa and coffee

The world’s largest food conglomerate Nestle has published its 2023 sustainability report pledging to reach and maintain 100% deforestation-free primary supply chains by 2025.

Infrastructure firm launches Philippines’ first biodiversity offset project

The company tasked with building and operating the New Manila International Airport has launched the first project in the Philippines aimed at offsetting the loss of natural and critical habitats from a major infrastructure project.

RePlanet plans pilot for monitoring of biodiversity credit projects

UK-based RePlanet is looking to pilot a method together with with 10 organisations to enable relatively cheap monitoring of biodiversity credit projects.

Financial sector must reform subsidies to protect nature, Colombian minister says

The financial sector must step up and participate in the process of reforming subsidies that are harmful to nature, Colombia’s environment minister has said, as the government prepares to host UN biodiversity talks later this year.

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Job listings this week

• *Asset Management Consultant, Nature Based Carbon Fund (NBCF) Projects, Climate Asset Management Limited – Nairobi
• *Feature Writer/Sub-Editor, Carbon Pulse – North America
• *Environmental Markets Correspondent, Carbon Pulse – Latin America
• Chief Strategy and Impact officer, Green Climate Fund – Incheon, South Korea
• Carbon Program Manager, Kimberley Land Council – Kimberley Region, Australia
• Regional Head of Carbon/Commerical Director, NAM, Louis Dreyfus Company – Wilton, CT/Calgary, AB
• Carbon Project Lead, Afforestation Project, East Carbon Consultancy – Fujairah, UAE
• Climate Policy Coordinator, Conservation International – Various Locations

*Premium listings

Or click here to see all 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

Saharan sun – A project to export solar and wind power from the Sahara desert to the UK is moving a step closer to reality as its backer, Xlinks, prepares to commission the world’s largest cable-laying ship later this year, the Telegraph reported. The 70-foot vessel will lay four parallel 100-mile cables to link solar and wind farms in Morocco with a substation on the coast in Devon. The ship is expected to cost several hundred million pounds and to be able to carry 200 miles of power cables. The project is expected to deliver around 3.6 GW of power to the UK’s national grid, or around 8% of the country’s power demand.

Not lawful – Berlin’s hefty climate investment plans are on the brink of collapse, after legal experts deemed the funding scheme as it stands illegal, according to local media reports. Law experts commissioned by the city government determined that the current plan involving a “special climate protection fund” worth €5 bln is “not permissible”. The conclusion of the legal opinion was received as “very bad news” by the CDU parliamentary group, and “a disaster” by SPD members of Berlin’s state parliament. The German capital’s government now most likely faces alternative ways of funding its climate initiatives. The fund was founded last summer with the aim of financing initiatives in mobility, building energy efficiency, and power supply. (Clean Energy Wire)

CCS for energy-to-waste gets green light – Energy-from-waste operator Enfinium is moving ahead with plans to install carbon capture and storage (CCS) technology at its giant base in Yorkshire, following approval by UK energy ministry DESNZ of the plan, as reported by the Energyst. The company’s Ferrybridge 1 and 2 facilities at Knottingley, near Pontefract, make up Britain’s biggest energy from waste site. They burn over 1.4 million tonnes of unrecyclable waste a year, making power sufficient for around 350,000 homes’ needs. Once operational, the technology will capture around 1.2 Mt of CO₂ every year, including over 600,000 tonnes of durable, high-quality carbon removals.

Access for all – Swiss-based NGO Fair Carbon has launched a Blue Carbon Academy with the aim of democratising access to blue carbon knowledge in order to scale up the emerging blue carbon market for coastal and marine restoration. The platform aims to support communities worldwide with accessing blue carbon finance. The blue carbon market is lagging behind development of other parts of the voluntary carbon market, with few blue carbon projects scaled up so far. The Blue Carbon Academy is a science-based online course designed to make it easy to understand how to create credible and successful blue carbon projects , from the basics towards accreditation to monitoring and verification.

ASIA PACIFIC

Injection of funds – Japan has decided to donate $3 mln (411 mln yen) to Brazil’s Amazon Fund to help conserve the rainforest region, according to a release by the Ministry of Foreign Affairs of Japan. The announcement comes after the fund, relaunched as one of the first acts of returning president Luiz Inacio Lula da Silva, last year received $640 mln in new pledged donations from developed nations including the US and Norway.

We’ve come so far – China’s emissions trading scheme has helped cut the overall cost of emissions reduction in the domestic power sector by around 35 bln yuan ($4.86 bln) during the past two compliance cycles, government officials told a press conference on Monday. Zhao Yingmin, the country’s vice minister for the environment, also said China plans to start expanding its national carbon market as soon as possible, targeting industries with overcapacity problems, the mitigation potential, and the most robust data registries, according to Bloomberg.

AMERICAS

Bitcoin battle – The US Department of Energy on Friday announced it is temporarily halting its mandatory emergency survey of energy use by cryptocurrency miners following a lawsuit by bitcoin miner Riot Platforms and Texas Blockchain Council, Reuters reported. The plaintiffs claim that the Office of Management and Budget violated the Paperwork Reduction Act and its implementing regulations by acting arbitrarily and bypassing standard processes to approve the Energy Information Administration’s request to collect information. They also argue that the survey could harm businesses by forcing them to divulge confidential and sensitive information without lawful authority.

EPA actions – The US Environmental Protection Agency (EPA) is finalising multiple rules to reduce air pollution emissions from crude oil and natural gas industries, to be effective in May. First, the agency is completing revisions to the new source performance standards regulating GHG and volatile organic compounds admissions pursuant to the Clean Air Act. It is also preparing emission guidelines under the Act for states to follow in developing, submitting, and implementing state plans to establish performance standards to limit GHG emissions from oil and gas facilities. EPA also said it is finalising several actions following Congress’s June 30, 2021, disapproval of EPA’s final rule on emission standards for new, reconstructed, and modified sources within the oil and gas sector. Finally, the agency is set to establish a protocol under the general provisions for optical gas imaging.

To the moon – Canada’s road to net zero by 2050 will require colossal changes to the nation’s energy mix, a February report by the Canadian Centre for Policy Alternatives concluded. The report sees the country’s net zero by 2050 scenario to require, among other ambitious measures: scale up of wind and solar production by more than 10 times, increase of CCUS by up to 39 times and DAC by up to 5,600 times its current world capacity, reduction of per capita energy consumption by 40%, and decrease of fossil fuel production by up to 75%. The report is based on projections published by the Canada Energy Regulator in June 2023, and calls for major policy improvements, since existing policies as of Mar. 2023 would only see a 16% reduction of emissions from 2022 levels by 2050.

Hand-off – Two members of the legislative assembly in the Northwest Territories (NWT) will introduce a bill to repeal the territory’s carbon tax, local media Cabin Radio reported Friday. Members Kieron Testart and Robert Hawkins plan to introduce the Carbon Tax Repeal Act, which would allow the NWT to hand off administration of the tax to the federal government, as the current carbon tax system is entirely designed and implemented by the territorial government. The NWT only recently approved a carbon tax exemption on home heating fuel following the federal exemption announced in Oct. 2023.

Brazilian ETS timeline – The Brazilian government wants to approve a law establishing a national cap-and-trade system in the first half of this year, reported CNN Brasil, in an effort to show progress ahead of the country hosting COP30 in Belem. After its passage by the lower house in Dec. 2023, the bill then returned to the Senate, where it was passed unanimously by the environmental committee in Oct. 2023 following a deal to exempt the agricultural sector. Brazilian President Luis Ignacio Lula da Silva originally hoped to have the measure approved prior to COP28, but approval will now depend on what adjustments may be made in the Senate, which may require the bill to be sent back to the Chamber. According to EPBR’s reporting, legal definitions, the involvement of sub-national authorities in governance, and the role of the voluntary carbon market are potential areas of tension.

Quilombola credits – The Brazilian Ministry of Racial Equality and the Federal Institute of Maranhao announced a partnership Monday that entails an initial investment of R$5 mln (US$ 1 mln) to strengthen the production systems of Quilombola communities in Alcantra, Maranhao. This partnership will provide for the installation of photovoltaic plants that will not only serve residents of these disadvantaged communities, but also facilitate the generation of carbon credits through the production of clean energy, the ministry said. With a total of R$30 mln for investment, the Decentralized Execution Term (TED) will support Quilombola communities through the Sisteminha method of the Brazilian Agricultural Research Corporation, which integrates several activities related to chicken and fish breeding, composting and vermicomposting, horticulture, and more.

Buying in Brazil – Brazilian energy firm Auren Energia launched an e-commerce platform for carbon credits, allowing customers to offset emissions through renewable energy and forestry projects, all registered with Verra, Teletime news reported Thursday. The new platform is part of the company’s strategy to expand its offerings in the carbon market, which yielded R$25 mln ($5 mln) in revenues for the firm in 2023, while it eyes trade of 8 mln credits by 2030.

Adopt, adapt – At a summit for the Caribbean Community (CARICOM) intergovernmental political and economic alliance, CARICOM chairman and Guyanese President Mohamed Irfaan Ali announced that the South American country will commit $2 mln in carbon credit proceeds toward a Regional Adaption Fund. The carbon credits were purchased by global energy giant Hess, acquired by Chevron, through a $750 mln agreement that will see the company purchasing 37.5 mln credits over the 2022-32 period. In 2023, Guyana received a first payment of $150 mln. President Ali stated that the adaptation commitment is in line with the aspirations of Barbadian Prime Minister Mia Mottley’s 2022 Bridgetown Initiative, which advocates an overhaul of the global financial system to enable private finance mobilisation for green transition and climate resilience in small island developing states and other climate-vulnerable countries.

Curtailed carbon tax collection – The Mexican state of Zacatecas only collected MX$329.8 mln pesos (US$19.3 mln) from its environmental tax, which includes a tax on carbon, in 2023, reported El Sol de Zacatecas. This represented less than half of the $685.2 mln the state collected in 2021, which can be accounted for by a 51% drop in collection, according to the local media outlet. Numerous companies have refused to comply, having filed appeals against the tax, and these companies are now in negotiations with the government. The environmental tax revolves not only around emission of GHGs into the atmosphere, but also the extraction of certain materials, waste deposit or storage, and emission of pollutants into soil, subsoil, or water. To date, 39 entities have registered to pay, mostly from the mining sector.

INVESTMENT

New ventures – A former partner at London-based hedge fund Clean Energy Transition, Nishant Gupta, is planning to launch his own long-short equity fund focused on the green economy, Bloomberg reports. The new fund, Kanou Capital, is raising cash ahead of its launch on July 1, Gupta told the news outlet, without disclosing how much he’s looking to raise. Kanou will wager on themes such as clean technology and the electrification of transportation as well as businesses affected by the global shift away from fossil fuels, such as industrials, power and commodities.

SCIENCE & TECH

Carbon capture engine – Toyota is testing a new filtering technology in its GR Corolla car, which is said to capture CO2 from the air to be then stored in a receptacle of fluid that absorbs and stores the gas from the filters, Automotive News reported Sunday. The technology can be applied to any vehicle that contains an engine – even those that are gasoline powered – but its commercialisation is far off from the horizon. The test race car captured only 20 grams of CO2 every 20 laps, said the outlet, and filters had to be changed manually at every pit stop. Concerns regarding the safe disposal of the absorbent fluid also remain prominent.

AND FINALLY…

Taking the slow boat home – An Italian social scientist and climate activist who says he was unlawfully fired because he refused to fly home from a work assignment has lost a court battle to regain his job, E&E News reports. Gianluca Grimalda, who shuns air travel because of its effect on the planet, had sought reinstatement to the Germany-based Kiel Institute for the World Economy after losing his job in October. But Grimalda said a judge of the Labor Court in Kiel rejected his appeal last week on the grounds that taking 10 weeks for “slow travelling” is unacceptable if an employer has requested a faster return. The Kiel Institute, which says it supported Grimalda’s previous efforts to eschew flying, fired him after he took 72 days to travel back from Papua New Guinea to Germany aboard a series of cargo ships, ferries, trains, and buses. The institute had requested that he return within five days. Grimalda sued for unfair dismissal, arguing in part that he had the ability to work remotely on his journey back to Europe.

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