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Carbon Pulse published a massive *40 articles* today, informing our loyal and growing readership.

TOP STORY

Guyana to sell first carbon credits eligible for current phase of UN CORSIA aviation offsetting scheme

Guyana will become the first country to see millions of its voluntary carbon credits deemed eligible and made available for global buyers in current phase of the UN’s CORSIA international aviation offsetting scheme.

VOLUNTARY

Human Rights Watch report accuses Cambodia REDD+ project of abuses, slams Verra for failing to act

A long-awaited report by Human Rights Watch (HRW) investigating a Cambodian REDD+ project has found developers failed to obtain free, prior, and informed consent (FPIC) from Indigenous communities, some of whom are said to have been arrested and had their livelihoods destroyed as a result of the scheme’s operations.

SBTi sets out corporate guidelines for beyond value chain emissions cuts via voluntary carbon credits

New guidance from the Science Based Targets initiative (SBTi) aims to encourage companies to invest in emissions reductions beyond their own value chains on top – rather than instead – of decarbonising their own operations, including by investing in voluntary carbon credits and projects.

Asset management firm funds $50 mln-biochar project in Indonesia, as marketplace set to emerge

An Abu Dhabi-based asset management firm has announced its first investment in a biochar-based carbon offset project in Indonesia, which is expected to generate around $50 million worth of credits over the next 10 years, the firm announced Tuesday, as separately a blockchain platform is planning a biochar credit marketplace.

Idle ships at anchor to earn voluntary carbon credits under new Gold Standard methodology

Idle ships at anchor around the globe will be able to earn carbon credits under a new methodology approved by Gold Standard.

South Pole appoints sustainable finance expert as new CEO

Large voluntary carbon project developer and investor South Pole has appointed the former head of sustainable finance at HSBC as its new CEO, the firm announced Wednesday.

Voluntary standard unveils new forest carbon crediting methodology

A voluntary carbon standard has opened a consultation on a new afforestation, reforestation, and revegetation methodology, weeks after it had announced it will exclusively focus on crediting nature-based solutions and move away from older UN crediting programmes.

INTERVIEW: Using less energy to capture CO2 is key to DAC race

A developer of direct air capture (DAC) says that its technology’s low energy use requirements compared to other methods will allow it to scale up faster by connecting to the grid.

Corporates fail to cough up enough cash to fund sustainability innovation -study

Almost half of executives surveyed for a new study said that they struggle to fund climate investments, with spending on sustainability reporting exceeding that on tangible green innovation by 43%.

Financed emissions reporting standard partners with sustainability data portal

An initiative set up to define reporting standards for financed emissions is partnering with a provider of sustainability information to address issues with data gaps, according to a press release issued Wednesday.

US project developer launches programme to help small businesses boost offsetting, sustainability efforts

A US-based project developer has launched a new initiative aimed at empowering small and midsize businesses (SMBs) to engage in sustainable practices and voluntarily reduce their carbon footprints.

ASIA PACIFIC

New Zealand govt announces independent review into forestry ETS costs

The New Zealand government has announced an independent review into the forestry sector component of the ETS to ensure it is efficient and cost-effective, it announced Thursday.

Australia Market Roundup: Poll respondents support nuclear power in Australia, ACCU issuance increases

Survey results published this week show that 55% of Australian voters support the idea of small modular nuclear (SMR) reactors as an energy transition technology in the country, local media reports.

South Korea strengthens support for SMEs to get to grips with CBAM

Government agencies in South Korea are ramping up efforts to help domestic companies make preparations for the impact of the EU’s proposed carbon border tax, with a focus on capacity building and financial support.

Indonesia muddies the waters with ‘green’ coal claims -think tank

Indonesia’s captive coal-fired power stations cannot reasonably be listed as new, clean energy even if they are used in mineral processing for the battery supply chain, a think tank said Tuesday in response to the Southeast Asian country’s recently proposed sustainable finance taxonomy.

Indian climate consultancy to launch govt-backed rice projects in Laos

An Indian environmental consultancy has teamed up with the Lao government to generate carbon credits from a rice-focused emissions reduction methodology that has rapidly gained popularity across Asia.

Timor-Leste taking steps to outline policy for nature-based voluntary market

Timor-Leste has started taking steps to put together policy guidelines for the voluntary, nature-based carbon market, though a lot of work remains before the framework is finalised.

AMERICAS

Deluge of stakeholder feedback on draft LCFS changes stalls California rulemaking

Stakeholders flooded the ARB with comments about proposed changes to California’s Low Carbon Fuel Standard (LCFS) programme, with broad support for tightening the programme but opposing views on a slew of draft rules including the sunsetting of avoided methane crediting, reversing intrastate jet fuel exemptions, and pushback against increased reporting requirements.

US Forest Service faces lawsuit for ignoring carbon emissions from timber targets

The US Forest Service, responsible for stewardship of public forest acreage, has failed to assess the effects of its logging projects on carbon storage and emissions, an environmental law firm said in a lawsuit filed Monday.

California DEBs offset prices remain at record highs, issuance lags

California offsets offering direct environmental benefits (DEBs) to the state command high prices even as year-to-date issuance trails last year’s levels for the same time, data published by state regulator ARB on Wednesday showed.

RGGI compliance entities shrink permit shortfall in Q4, trading volumes ramp up

Allowance holdings of power sector emitters under the RGGI carbon market increased at the end of the fourth quarter in 2023 as emitters narrowed their net short position significantly, while quarterly trade volumes beat both year-on-year and prior quarter amounts, according to a report published Tuesday.

Cuba to offer financial incentive for CO2 removals from improved forest management

Cuba has legislated financial incentives to generate CO2 removals via improved forest management (IFM) through a certification process mediated by the government, according to a resolution published in the country’s Official Gazette on Feb. 21.

Brazil partners with global finance group to protect Amazon, speed clean energy transition

Brazil has teamed up with a large global climate finance group to rapidly ramp up funding for the protection of the Amazon rainforest and scale clean energy development.

Argentina’s timber industry is key priority compatible with low-carbon goals, say ministers

Argentina’s timber industry is critical to the country while lending itself to sustainable natural resource management, according to the Bioeconomy and Industry Secretariats.

North American timberland company, Texas-based energy firm partner to explore CCS opportunities in southern US

A North American timberland owner has joined forces with a Texas-based energy firm to explore the potential for CO2 sequestration opportunities across a vast expanse of the southern US.

EMEA

FEATURE: Steelmakers brace for end of free EU carbon allowances

Traditional steelmakers say they will have to spend €3 billion on additional EUAs until 2030 to comply with the European Commission’s newly proposed free allocation rules, which aim to promote the cleanest methods of reducing iron ore for steelmaking.

FEATURE: UK-EU ETS linkage needed to avert crisis in Northern Ireland despite carbon border tariff, but potential for WTO challenge remains

The UK must make overtures to link its ETS to the EU’s emissions market in order to avoid substantial carbon tariff burdens in Northern Ireland, though ‘non-discrimination’ challenges could apply under World Trade Organisation (WTO) rules regardless, experts have told Carbon Pulse.

EU countries fail to reach a deal on corporate due diligence bill

European ambassadors failed to reach an agreement on a bill setting due diligence rules for large companies, including an obligation to adopt Paris Agreement-aligned climate plans, leaving their meeting on Wednesday open-ended after a month-long stall.

Biomethane merger hopes to boost Europe’s green gas output with CO2 capture

The merger of a European biomethane provider and a global supplier of biogas treatment systems will help to deploy new technology that can increase green gas production by 70% – further displacing natural gas, the companies announced Wednesday.

Energy exchanges to collaborate on Turkish ETS

Energy exchanges in Germany and Turkey have agreed to collaborate on building a carbon market in the Mediterranean country.

Uniper reports 22% drop in 2023 EU ETS-covered power generation

Uniper’s EU fossil power generation fell by more than one-fifth last year, the utility said in an annual report on Wednesday.

EU nations should look at broader climate solutions to bridge the gap towards targets, experts say

EU countries should explore a wide variety of technological solutions to achieve the bloc’s target to cut emissions by at least 55% by 2030 compared to 1990 levels, experts suggested on Wednesday.

Euro Markets: Heavy afternoon sell-off trims early gains on short-covering after strong auction

EU carbon allowance prices rose to a nine-day high in very heavy trading after the strongest auction result in six weeks triggered further short-covering by speculative traders, before a late and steep sell-off trimmed the gains, while the weekly position data showed investors had boosted their bearish bets to a new record.

AVIATION/SHIPPING

Southwest Airlines invests $30 mln in SAF producer LanzaJet

Southwest Airlines has announced a strategic $30 million investment in sustainable fuel firm LanzaJet as part of a strategy to develop a sustainable aviation fuel (SAF) production facility in the US.

BIODIVERSITY (FREE TO READ)

India’s Green Credit Scheme could spell disaster for ecosystems, experts warn

The Indian government last week released further guidelines for its Green Credit Scheme, revealing plans to award credits for planting trees in landscapes where they don’t grow naturally, a move experts say would be “disastrous” for local ecosystems.

Better nature protection in the Cerrado could give huge boost to Brazil GDP, WEF says

The agricultural development in the Cerrado no longer needs to come at the expense of destroying the ecosystem, becoming instead an opportunity to attract investment in sustainable agriculture, the World Economic Forum (WEF) has warned.

UK-France panel spotlights challenges with scaling biodiversity credit market

Key challenges to scaling the emerging biodiversity credits market include the need for independent verification, robust regulation, and fair engagement with Indigenous Peoples, a UK-France led international initiative told an event on the sidelines of the ongoing UN environment summit this week.

Brazil kickstarts G20 bioeconomy initiative amid fears of political setbacks

Brazil has launched an initiative to lay the groundwork for a common framework on bioeconomy as a part of its G20 Presidency, though political divisions threaten to hamper the process, an expert involved in the talks told Carbon Pulse.

Water company, TNC target £30 mln with nature-based English fund

A sustainable fund focused on improving water security in east England has been announced by US-headquartered non-profit The Nature Conservancy (TNC) and Anglian Water with a target raise of £30 million ($38 mln).

UNEP FI urges financial players to call on governments to set mandatory plastic pollution disclosures

Financial institutions have been invited by UN Environment Programme Finance Initiative (UNEP FI) to sign a statement, calling on governments to agree on mandatory corporate disclosures on plastic pollution.

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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

Pellet controversy – Drax is continuing to burn wood from some of the world’s most precious forests at its power plants in England despite receiving £6 bln in UK green subsidies, the BBC reports. Drax claims its wood pellets are “sustainable and legally harvested” yet papers obtained by Panorama show that Drax took timber from rare forests in Canada it had claimed were “no go areas”. The Drax power station in North Yorkshire was converted from burning coal to wood pellets and produces about 5% of the UK’s electricity. The station emits about 12 Mt of carbon a year, but under international rules the UK doesn’t have to count these emissions due to the fuel source being considered renewable and emissions-free. However, critics question the true sustainability of those pellets, saying that many come from overseas and from primary forests. Following a previous Panorama investigation that revealed the company taking logs from reportedly primary forest in British Colombia, Drax has since said it would no longer apply for further logging licences in the Canadian province.

Legal wrangling – Bulgaria’s government is still mulling over whether to sue Gazprom for cutting off gas supplies two months after Russia invaded Ukraine in 2022. The government is analysing “whether to file an arbitration claim for the damages suffered”, Bulgaria’s Energy Ministry told Euractiv Bulgaria. Gazprom halted gas supplies to Bulgaria and Poland at the end of April 2022 because both countries refused to open rouble accounts at Gazprom Bank. Previously, Gazprom had returned Bulgargaz’s payment in dollars, even though the contract between the two parties is denominated in that currency. This followed a decree by Putin ordering payment for Russian gas to be made in roubles. Bulgargaz considers this dispute to be a top priority for the company, and preparation of the damage caused is in its final stage.

French gas down 20% – Gas consumption in France declined 20% last year from 2021, the year prior to Russia’s invasion of Ukraine – a level not seen since the 1990s, reported Euractiv. In 2023, French gas consumption reached 381 TWh, some 11.4% less than the year before and 20% less than in 2021, according to figures released by GRTgaz, France’s transmission system operator. Russian supplies fell below 9% of French gas consumption, down from 17% in February 2022, reported GRDF, the French distribution system operator, even though the share of Russian LNG was higher, at 17% of the total, according to Kpler, a specialist consultancy. Altogether, French gas consumption last year was far below the peak of 547 TWh reached in 2010. The decrease was caused chiefly by an 18.2% fall in industrial demand as a result of energy efficiency efforts and energy substitution, GRTgaz noted, saying high prices in recent years have caused some factories to shut down.

Yes to onshore wind – The Labour Party has declared that it will overturn a de facto onshore wind ban imposed by the Conservatives “at the stroke of a pen” if it wins the general election, according to a speech by shadow energy secretary Ed Miliband at an energy industry conference in London this week. Miliband told the International Energy Week audience that the government has “ducked” difficult decisions and could instead overturn the rules “very easily”. Last September, the UK government claimed to have lifted the ban on onshore wind farms, in place since 2015, yet no new plans have been submitted since then and critics say the move doesn’t go far enough. (the Guardian)

Battery blast – The county of Somerset in southwest England will host the UK’s largest electric vehicle battery manufacturing facility, with Jaguar Land Rover-owner Tata confirming plans to invest £4 bln in a brownfield site near Bridgwater, the BBC reports. The new plant is expected to create 4,000 jobs and thousands more in the supply chain, with battery production set to commence in 2026. By the early 2030s, the plant is expected to contribute almost half of the projected battery manufacturing capacity required for the UK automotive sector. The factory will produce 40GWh of battery cells annually, enough to supply approximately 500,000 passenger vehicles. Located not far from the Hinkley Point C nuclear power station, the gigafactory will be one of Europe’s largest and a key marker in UK plans to scale up its green industries.

Second life – Aberdeen could enjoy a ”second renaissance” with the creation of a North Sea energy grid connecting offshore wind and linking up the UK with Scandinavia and France, as well as carbon capture and storage development, said former prime minister Gordon Brown in a report from his think tank Our Scottish Future. As the Scottish city winds down as a hub for oil and gas production, green energy could take its place, the report suggests. The proposed ‘North Sea 2’ would include offshore wind, an integrated power grid, hydrogen, and CCS, though would require substantial investment and rely on private capital, the report acknowledges. (the Independent)

ASIA PACIFIC

Power reforms (cont’d) – China’s major power groups and regional governments have been urged to work on load management and smart dispatch, as the country seeks to further improve power system flexibility and promote renewable energy, according to policy documents released this week by the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA). Stakeholders in the power sector should also support inter-regional coordination and deepen market-based reforms for electricity trading, the two regulators said. China has launched several rounds of power sector reforms over the past few decades to improve its electricity system, which is often considered inefficient due to planned power scheduling and dispatch.

Biochar alliance – Japan’s Toho Gas has teamed up with project developer Towing to promote the production of biochar in the country, according to a statement released Wednesday. The two companies, aiming to reduce emissions and the use of chemical fertilisers in the agricultural field, said they would utilise rice husks and other types of residues. Towing will also handle the sales and issuance of carbon credits based on GHG reduction effects, the statement said.

AMERICAS

Pondering port problems – The US Environmental Protection Agency on Wednesday announced a $3 bln Clean Ports Program under the Inflation Reduction Act (IRA), which will fund initiatives to reduce diesel pollution from US ports in surrounding communities. EPA will release two separate funding opportunity notices to divvy up the sum for two grant competitions. Around $2.8 bln will be set aside for the Zero-Emission Technology Deployment Competition to fund zero emission port equipment and infrastructure, while some $150 mln will be allocated to Climate and Air Quality Planning Competition for climate and air quality planning activities at US ports. The funding for the two grant competitions is available to port authorities; state, regional, local, or Tribal agencies that have jurisdiction over a port authority or port; air pollution control agencies; and private entities that apply in partnership with one of the eligible entities, and that own, operate or use facilities, cargo-handling equipment, transportation equipment, or related technology of a port. Projects at both water and dry ports are eligible to apply.

Ahoy, ocean-based RINs – US Senators Pete Ricketts (R-NE) and Sherrod Brown (D-OH) introduced Tuesday the Renewable Fuel for Ocean-Going Vessels Act, which would expand the Renewable Fuel Standard (RFS) definition of additional renewable fuels, allowing companies to use or sell Renewable Identification Numbers (RINs) associated with biodiesel and renewable diesel used in ocean-going vessels. The RFS currently excludes fuels used in such vessels in its definition of transportation fuels and from refiners’ and blenders’ obligations. These entities are currently required to retire RINs from any biodiesel and renewable diesel used in vessels with Class 3 engines operating in international waters. In the first ten months of 2023, more than 5 mln D4 RINs were retired under this rule, according to the Tuesday press release from Ricketts.

Claims challenged – Giant meat producer JBS was accused of making misleading claims about its GHG reduction goals to boost sales among environmentally conscious consumers in a lawsuit filed Wednesday by New York Attorney General Letitia James, reported AP. According to James’ filing, JBS claimed it would achieve net zero emissions by 2040 despite having no viable plan to meet that commitment. The lawsuit names as defendants JBS USA Food Company and JBS USA Food Company Holdings, the American subsidiary of the world-leading producer of beef products based in Brazil.

ECCC methodology update – Environment and Climate Change Canada (ECCC) is in the process of developing a draft methodology for acceptance of direct air capture and storage (DACS), Judy Meltzer, director general of ECCC, told a conference Wednesday. According to Meltzer, this would be the publicly approved first DACS offset protocol. She also said a document will be published this year for public consultation. Meltzer also said ECCC is in the process of finalising an improved forest management (IFM) with private lands and is continuing its development of a carbon sequestration protocol.

VOLUNTARY

Regulating credits – West Virginia on Wednesday moved closer to establishing a state-regulated carbon programme after Senate Bill 618 (SB 618), which authorises the Division of Forestry to regulate the sale and purchase of carbon credits by administering a Forest Management Exchange Program, passed the chamber on a 27-5 vote Wednesday. If adopted, the agency would retain the sole authority to serve as the exclusive contracting platform for all carbon credit agreements involving land and standing timber located in West Virginia. The bill is now headed to the House of Delegates for consideration.

MRV up for grabs – Ocean CDR stakeholders discussed the role of independent MRV of ocean CDR projects during a panel at Carbon Removal Day in Ottawa, hosted by policy organisation Carbon Removal Canada on Wednesday. While certain project developers in the ecosystem currently self-engage in MRV, Anya Waite, scientific director and CEO of research organisation Ocean Frontier Institute, argued that MRV work should be left to “research organisations that do this for a living, and whose business is to do absolutely independent work that holds them and all other companies accountable”. “I don’t think you’ll get any disagreement from either of us on that,“ noted panelist and project developer Mike Kelland, CEO of Planetary Technologies, in reference to fellow panelist and developer Jordan Breighner, senior vice president at Running Tide. However, Keller emphasised the practitioner’s advantage of project developers in conducting MRV, while Breighner noted that the private sector could build models and data points much faster than academic institutions.

SHIPPING

Easing compliance – Shipping companies can access a new service to help them tackle EU ETS compliance through the new partnership between digital solutions provider Zero44 and classification society DNV, which will combine the former’s data verification services with zero44’s EUA settlements, trading platform, and union registry management, the two announced today. Gram Car Carriers shall be the first client to benefit from the new partnership. (shipandbunker.com)

AND FINALLY…

A mere footnote – Climate change has been relegated to an annex of a 56-page draft agreement by the World Trade Organisation for global commerce, despite the WTO chief being on a mission to put climate change at the heart of the WTO’s work, Reuters reports. The section merely pledges to “promote cooperation on environmental aspects of trade” and mandates a WTO committee to offer recommendations by the next major meeting in two years. In a rare move, Director-General Ngozi Okonjo-Iweala has intervened to propose alternative language in the draft Abu Dhabi agreement and negotiations continue. The WTO is committed to sustainable trade under its founding document, yet has no global negotiating stream on the subject. Okonjo-Iweala wants to confront the view by some ecologists that free trade drives up climate issues by increasing economic growth. Instead, she argues that WTO can help matters by tackling fossil fuel subsidies and harmonising carbon prices.

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