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TOP STORY
Canada’s Saskatchewan confirms it won’t remit federal carbon fuel tax
Saskatchewan’s provincial government on Thursday confirmed it would not remit the Canadian federal carbon charge following its refusal to collect the fee from household gas bills, potentially setting up a legal fight with Ottawa over the climate policy.
VOLUNTARY
INTERVIEW: Puro to apply for CORSIA eligibility, start issuing credits from three more voluntary carbon methodologies
Voluntary carbon removals standard Puro.earth will issue credits under three additional methodologies this year and formally apply to have its units approved under the current phase of the UN’s CORSIA aviation offsetting scheme, the company’s CEO told Carbon Pulse.
ICVCM revises down number of voluntary credits assessed for integrity stamp, but promises quick turnaround
Nearly all the assessements of voluntary carbon market methodologies currently under review for the Core Carbon Principles (CCPs) stamp of high integrity, accounting for some 850 million credits, will be concluded by the end of September, the Integrity Council for Voluntary Carbon Markets (ICVCM) told Carbon Pulse on Thursday.
UNDP, VCMI sign cooperative agreement to bolster carbon market readiness in developing countries
The UN Development Programme (UNDP) has signed a cooperation agreement with the Voluntary Carbon Market Integrity Initiative (VCMI) to boost developing countries’ participation in carbon markets, they announced Friday.
Oil company buys into Brazilian REDD+ project
An Australian oil and gas company producing offshore Brazil has signed up for a five-year partnership with a local REDD+ project certified by Verra.
INTERVIEW: Developer of solid sorbent for industrial CO2 capture eyes industrial scale-up
The developer of a solid sorbent made from plastic waste says its technology captures CO2 from industrial flue gas more cheaply and energy efficiently than commercial offerings currently available, and expects to move from laboratory-scale to an industrial pilot this year.
US startup announces partnership to expand Brazilian farmers’ access to carbon market
A California-based soil carbon startup has partnered with a Brazilian agribusiness company to expand access to carbon financing for farmers and ranchers in Brazil through scaling regenerative agricultural practices, according to a Thursday press release.
UPDATE – Human Rights Watch report accuses Cambodia REDD+ project of abuses, slams Verra for failing to act
Updated with responses from Wildlife Alliance.
UPDATE – Guyana to sell first carbon credits eligible for current phase of UN CORSIA aviation offsetting scheme
Updated with information on available credits and market plan.
ASIA PACIFIC
Australia ACCU supply expected to triple to 2033, outlook says
Australia could be the largest developer of carbon offsets in the world by 2033, according to an outlook statement released Thursday, driven by demand from the Safeguard Mechanism.
South Korea weighs carbon contracts for differences
South Korea is considering introducing carbon contracts for differences (CCfDs) to de-risk private sector investments in emissions abatement technologies and ensure a clearer carbon price signal.
Singapore outlines rules for corporate climate disclosures
Firms listed on Singapore’s bourse will have to start reporting sustainability and climate information from next financial year, with their biggest unlisted counterparts to do the same two years after that.
Philippines ITMO registry operator launches digital platform for nature-based solutions
The operator of the Philippines’ national carbon registry has unveiled a platform dedicated to the development of nature-based solutions (NBS).
AMERICAS
Existing natural gas facilities exempted from pending US climate rule on power plants
The US Environmental Protection Agency (EPA) is excluding existing natural gas facilities from its proposed climate rule that aims to curb greenhouse emissions from power plants, significantly reducing the scope of its regulation.
WCI Markets: Volatility spikes in CCAs post Q1 auction
California Carbon Allowances (CCAs) traded through a volatile week following the market’s Q1 auction-inspired rally, while Washington Carbon Allowance (WCA) prices continued to recede ahead of next week’s first quarter sale.
US DOE offers $30 mln to carbon conversion, capture projects in latest funding opportunity
The US Department of Energy (DOE) announced Thursday that it will award up to $30 million to carbon conversion and carbon capture projects, the latest in a series of funding opportunities to flow from the agency in recent months.
South Dakota legislature approves suite of carbon pipeline bills
A controversial Senate bill, which reduces local control regarding CO2 pipeline projects, now awaits a final decision by Governor Kristi Noem (R), while two House bills, pertaining to landowners in the crosshairs of pipelines, now await a vote on the Senate floor.
Alberta budget targets emissions reductions funding towards CCUS
The Alberta government on Thursday published its 2024-27 provincial budget, largely allocating its forecasted carbon pricing revenues to carbon capture, utilisation, and storage (CCUS), while other emissions reductions projects are set to receive only around a tenth of the funding levels awarded to CCUS.
EMEA
European Commission wants more focus on investment in national climate plans
The European Commission’s evaluation process for National Energy and Climate Plans (NECPs) is not only about sticks, but also about carrots, a top EU official said, as the 27 member states struggle to meet a June deadline to submit their final drafts.
Drax posts tenfold increase in profits to reignite BECCs row
The operator of the UK’s largest power station has seen its profits jump more than tenfold to reignite criticism of its bioenergy with carbon capture and storage (BECCS) operations.
Denmark faces major challenge to meet 2030 climate goal, says govt watchdog
There is a “a significant risk” that Denmark will not meet its 2030 emissions reductions targets, the country’s climate change council said in a report on Thursday.
Euro Markets: EUAs post 8.2% monthly fall in February after weak auction triggers more selling
EU carbon allowance prices extended their losses from Wednesday afternoon to post an 8.2% monthly loss for February, after a weak auction on Thursday gave bears the confidence to resume selling, with some sources asserting that a recent rally was now over.
INTERNATIONAL
Switzerland and Ghana authorise first ITMOs from cookstove carbon project
Switzerland and Ghana have authorised the first sovereign carbon credits from a cookstoves project, meaning that once issued and transacted, they can be used towards the European country’s national Paris Agreement climate target.
Oil majors still incentivise fossil growth via executive pay despite energy transition strategies -report
Research from a financial think tank highlights that oil and gas companies still reward executives for expanding fossil fuel production, in spite of commitments to energy transition targets and climate policies.
Norway, Ethiopia move to payment phase of forest partnership
Norway and Ethiopia this week upgraded their decade-long forest partnership to pave the way for payments of up to $100 million if the East Africa nation meets its climate and nature targets.
AVIATION
British Airways owner IAG inks deal to secure almost 1 bln litres of SAF over 14 years
International Airlines Group (IAG) has agreed to buy almost a billion litres of sustainable aviation fuel from a California-based producer, bringing the British Airways owner a third of the way to reaching its 2030 SAF goal.
BIODIVERSITY (FREE TO READ)
Debt-for-nature swaps can play crucial role in boosting marine protected areas, researchers say
Implementing debt-for-nature swaps (DFNS) can play a “unique role” in providing funds to establish marine protected areas (MPAs), as shown by successful experiences in Seychelles and Belize, a study has found.
US releases ecosystem services accounting guidelines for public agencies
The US federal government has released guidelines to assist public agencies in assessing how their projects, policies, and regulations impact ecosystem services, in a move poised to reshape decision-making at a national level.
INTERVIEW: Pet food company invests in oyster reef biodiversity credit pilot
Purina Europe has partnered with a conservation startup that aims to produce voluntary marine biodiversity credits from a pilot by creating oyster reefs off the UK coast.
Knowledge hub launched to advance nature-based solutions across UK
Oxford University’s Nature-based Solutions Initiative (NbSI) has introduced a new Knowledge Hub to enhance the implementation and scaling up of high-quality nature-based solutions (NBS) across the UK.
Biodiversity Pulse: Thursday February 29, 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
Removals questioned – Investors are scratching their heads as they see large amounts of money flowing into expensive carbon removals ventures that are seen as unsustainable, MIT Technology Review reported. The sector has taken off in part because growing research shows that a huge amount of carbon removal will be needed to tackle climate change, and because companies are looking for ways to meet their commitments to net zero emissions, it said. Corporate demand is therefore outstripping the availability of reliable forms of removals. The fate of the industry will increasingly depend on how much help governments can provide.
EMEA
Market manipulation – The European Parliament has adopted a plan to avoid manipulation in the EU energy market. The Regulation on Wholesale Energy Market Integrity and Transparency (REMIT), already informally agreed upon with Council, introduces new measures to shield citizens from high prices and potential short-term fluctuations, introduces a closer alignment to EU rules on the transparency of financial markets, covers new trading practices, and strengthens provisions on reporting and monitoring to protect consumers from market abuses. The regulation was adopted with 440 votes to 32, with 31 abstentions. It will now have to also be formally endorsed by Council in order to become law.
Gas pass – The Balkan Stream gas pipeline through Bulgaria will become the main supply route for Russian gas for the EU and Ukraine when the transit through Ukraine stops at the end of this year as expected, Euractiv reports. The topic was discussed during the visit of the EU’s top energy official, Ditte Juul Jorgensen, to the dispatch centre of state-owned gas company Bulgartransgaz (BTG). Bulgaria is expected to become an increasingly important transit country for Russian gas to ensure supplies to Romania, Moldova, and the countries of south-eastern Europe. The EU has significantly reduced its imports of Russian gas from more than 50% to 15% last year, according to EU Commission data. Some 9% of Russian gas supplies to the EU come via pipelines, with the remainder being LNG.
Misinformed – UK Prime Minister Rishi Sunak was pressured into watering down climate change policies by a handful of newspaper editors and politicians who are promoting “falsehoods” about emissions reduction policies, Bob Ward, communications director at LSE’s Grantham Research Institute on Climate Change and the Environment, said in a speech Thursday. There has been a “notable increase” in the amount of climate misinformation promoted since July 2023, which pushed Sunak to roll back on policies last September, he said. The Sunday Telegraph, for example, published several false claims in July about net zero policies, suggesting that the UK’s 2050 target is an “arbitrary date”. It is actually based on analyses from the UK Committee on Climate Change and the UN IPCC, Ward said.
The Good Law – UK-based non-profit The Good Law projects has launched a legal challenge to the UK government’s mooted plans to limit local councils from setting energy efficiency standards that go above and beyond national policy requirements. In addition to this, the non-profit is also teaming up with Friends of the Earth and ClientEarth to sue the UK government over what they deem a deficient climate action plan. (edie)
Trash talk – The Norwegian government has notified an excise duty exemption for undertakings covered by the EU ETS, aiming to avoid double regulation and support the country’s climate goals. The exemption applies to activities under the current EU ETS, excluding those under the new ETS2 for buildings, road transport, and additional sectors. This measure is in response to the government’s introduction of an excise duty on waste incineration effective from Jan. 2022, which did not initially exempt ETS-covered emissions. The proposal seeks to harmonise with Norway’s environmental policy instruments and commitments under EEA law to reduce GHGs efficiently. The finance ministry argues that exempting ETS-covered undertakings from the incineration tax does not constitute state aid, as it prevents double pricing of emissions and promotes cost-efficient reductions. The tax aims to price CO2 emissions to encourage reduction strategies, aligning with Norway’s goal to reduce emissions by 40% by 2030 compared to 2005 levels. The government is also working to increase the scope and level of carbon taxes on emissions covered by the EU’s Effort Sharing Regulation to meet this target in a cost-efficient manner. The exemption is seen as necessary to maintain the competitiveness of ETS-covered undertakings and ensure the effectiveness of Norway’s climate policy.
Smooth sailing – Maritime software firm ZeroNorth will work with Vitol on the purchase of EUAs for shipping companies to comply with the EU ETS, reports Ship & Bunker. Shipping firms will be able to buy the allowances from Vitol’s carbon desk by way of the ZeroNorth platform, the software company said. The first deadline for shipping companies to surrender their EUAs for 2024 emissions will be Sept. 30, 2025.
ASIA PACIFIC
Better late than never – India’s central bank, the Reserve Bank of India (RBI) on Wednesday released a draft framework on climate-related financial risks for all the regulated entities (RE), which includes commercial banks, cooperative banks, all financial entities, and non-banking financial companies. Under the framework, all REs will have to disclose their governance, strategy, and risk management processes from fiscal 2026 and specify metrics and targets from fiscal 2028 onwards, RBI said. Further, the entities will have to disclose the impact of climate-related risks on their businesses and will also have to disclose how, and to what extent their processes for climate-related financial risks and opportunities are integrated into and inform their overall risk management, the central bank added. REs will also have to disclose their climate-related targets and such disclosures should be part of their financial statements. In 2022, RBI acknowledged climate change as a risk to business for the first time. Before that the central bank had no initiatives to deal with climate-related financial risks, revealed a 2020 global survey by the Bank for International Settlements (BIS), as reported by Mongabay.
Management standard – A report by advisory body Infrastructure Victoria has urged the Australian state government to adopt a carbon management standard to measure and manage carbon emissions, and adopt a carbon value of at least A$123 ($80), as part of efforts to make carbon emissions count in infrastructure decision-making. The body noted that action to limit or eliminate infrastructure-related emissions is complex, and that government and industry stakeholders were looking for guidance. It said new assessment and procurement processes can support the better use of existing infrastructure, while also prioritising low-carbon design solutions and materials. It said valuing carbon emissions can lead to better productivity outcomes, in addition to reducing carbon. The body noted that NSW already has a carbon measurement approach that Victoria should adopt. Up to 70% of Australia’s annual GHG emissions relate to the lifecycle of infrastructure through operational, enabled, and embodied emissions, the body said.
Chasing the Sun – China last year installed more solar panels in power plants than on rooftops for the first time since 2020 as the government’s push to build large-scale renewable facilities in inland deserts boosted growth, Bloomberg reported, citing data from the National Energy Administration (NEA). Large-scale solar projects (120 GW) in the country’s inland areas outgrew distributed capacity (96.3 GW), which are mainly on the rooftops of homes and office buildings, the report said. The country is expected to install as many as 220 GW this year, according to the China Photovoltaic Industry Association.
Ammonia project -Taiwan’s state-owned Taipower has teamed up with Japan’s IHI and Sumitomo as part of the utility’s decarbonisation plan to achieve a 5% ammonia-mixed power generation by 2030, it announced Thursday. IHI will be responsible for the feasibility assessment of boiler modification and combustion tests, while Sumitomo will assist in planning and construction. A pilot project at one of Taipower’s existing coal-fired plants is expected to reduce 9,000 tonnes of emissions every year, the statement said.
AMERICAS
DAC RFI – US DOE’s Office of Clean Energy Demonstrations (OCED) issued a Request for Information (RFI) Thursday in support of the Regional DAC Hubs programme, seeking to better understand the role of and funding needs for mid-scale commercial direct air capture (DAC) demonstration facilities with capture capacities of approximately 5,000–25,000 tons (4,500-22,700 tonnes) per year. Specifically, OECD is seeking input from industry, investors, developers, academia, research laboratories, government agencies, potentially impacted communities, and other entities on their interest, potential structure, benefits, and risks of mid-scale commercial DAC demonstration facilities. OCED plans to publicly share a summary of the RFI responses, and any information shared publicly would be aggregated and/or anonymised so that no information could be attributed to any individual respondent. Responses to the RFI are due on Apr. 25, 2024, at 1700 Eastern. As part of the programme, DOE announced in Aug. 2023 $1.2 bln in funding to advance the development of the nation’s first commercial-scale DAC facilities.
Fossil feuding – Fossil fuel companies including Exxon, Chevron, and Sunoco on Wednesday asked the US Supreme Court to scrap a decision that allowed Honolulu’s lawsuit alleging the companies misled the public for decades about the dangers of climate change to proceed to trial, reported Reuters. The new petition challenges the October decision by the Hawaii Supreme Court that rejected the oil companies’ argument that the lawsuit is blocked by federal law because it seeks to regulate interstate emissions or commerce, powers reserved for the federal government. The companies claim pollution is an inherently federal issue and that the federal Clean Air Act does not permit state-law claims based on emissions from other states that are properly regulated by the EPA. If the Hawaii Supreme Court’s decision is left standing, Honolulu’s case to be the first of a number of similar lawsuits to go to trial.
NY offshore wind awards – New York Governor Kathy Hochul (D) announced Thursday the conditional awarding of two offshore wind projects from the state’s fourth offshore wind solicitation – Empire Wind 1 (developed by Equinor) and Sunrise Wind (developed by Orsted and Eversource). The projects, totalling over 1,700 MW of clean energy, will be the largest power generation projects in the state in over 35 years once they enter operation in 2026, according to a Thursday press release from the governor’s office. In Oct. 2023, Hochul unveiled the largest ever investment in renewable energy by a US state, seeking to revitalise developers struggling under economic pressures following criticism that her administration hadn’t done enough to foster offshore wind projects.
Constitutional consideration – A group of over 40 Montana organisations and businesses submitted a petition to the Montana Public Service Commission (PSC) today to request that it adopt rules requiring consideration of climate change in its regulation of state gas and electric utilities. That rulemaking would make sure the PSC follows the Montana state constitution, which includes a right to a “clean and healthful environment,” according to the petition. In a court decision last summer, a state judge sided with a group of young plaintiffs and said Montana had violated its constitution by barring agencies from considering the climate impacts of fossil fuel projects.
Nuclear for net zero – National Resources Canada will fund up to C$50 mln ($36.8 mln) to study the feasibility of more nuclear energy in Ontario, in alignment with the federal government’s plan to build a net zero economy, announced Minister of Energy and Natural Resources Jonathan Wilkinson at the Canadian Nuclear Association conference Thursday. The funding will support pre-development work at electricity company Bruce Power, located in Bruce County, Ontario, which is presently going through a federal impact assessment process for an additional 4,800 MW at its site. No formal decision has yet been made to advance a build. The funding decision arrives amid watered-down performance standards in the federal draft Clean Electricity Regulations, put forward by Environment and Climate Change Canada, the agency responsible for regulation of greenhouse gas emissions.
VOLUNTARY
ClimatePartner’s partners – Corporate climate action consulting firm has initiated an online roundtable with experts from SBTi, Gold Standard, WWF, and PwC to promote industry dialogue on the topic of setting new standards for quality and transparency in companies’ voluntary climate action, the company said on Thursday. ClimatePartner wants to develop new benchmarks for the voluntary market and introduce new approaches for Beyond Value Chain Mitigation (BVCM).
AND FINALLY…
Mint and mustard – Unilever has initiated its inaugural regenerative agriculture programme in the UK, focusing on enhancing biodiversity, utilising low-carbon fertilisers, and incorporating cover and companion crops to improve yields for mustard seed and mint leaf cultivation. This initiative, set to begin next month around Norwich and Peterborough, will support the production of Colman’s food products. Collaborating with English Mustard Growers, Norfolk Mint Growers, Farmacy, and the National Institute of Agricultural Botany (NIAB), Unilever aims to introduce practices that reduce emissions and water usage while increasing crop yields and resilience against climate challenges. Unilever said its efforts reflect its commitment to healthy soil and the regeneration of farmland, crucial for ensuring food security, supply chain resilience, and contributing to the company’s net-zero emissions goal. The company has pledged to invest in regenerative agriculture practices on 1.5 mln hectares of land and forests globally by 2030. This UK project is part of Unilever’s broader initiative, which included four pilot projects across Argentina, Spain, Italy, and the US last year, to explore regenerative farming practices tailored to different crops and environments. (edie)
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