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TOP STORY

FEATURE: EU’s carbon market diplomacy task force shrouded in mystery

When the European Commission presented its recommendations for a 2040 climate target last month, it also raised expectations – and a few eyebrows – by announcing the creation of a dedicated task force on “carbon market diplomacy”.

EMEA

Lawmakers greenlight plans to harmonise EU carbon accounting rules for transport

Members of the European Parliament gave the thumbs up Monday evening to draft plans for harmonising the way transport emissions are counted in the EU, with a final agreement with member states not expected until after the June European elections.

EU energy ministers agree to reduce demand for gas for another year

The EU’s 27 energy ministers committed on Monday to continue efforts to reduce demand for gas until the end of next winter by at least 15%, during a meeting in Brussels.

City of London initiative to help SMEs, individuals buy UKAs rather than voluntary carbon

London’s financial hub is urging businesses and people to buy carbon from the regulated UK ETS and cancel them permanently, rather than offset emissions through voluntary markets, as part of a new collaboration launched Monday.

Euro Markets: EUAs wipe out steep early losses as gas prices jump on US LNG cutback news

European carbon allowances made an abrupt about-face in sync with natural gas prices on Monday, wiping out early losses of as much as 5.2% after a US LNG exporter said it would cut March production due to low prices, leaving both markets posting gains.

Mix of CCS, nuclear, geothermal, and wind power needed to decarbonise Poland -analysis

The EU’s third-biggest carbon emitter, Poland, will need to almost double the amount of wind capacity it is currently installing annually, as well as use CCS, nuclear, and geothermal energy in order to reach net zero emissions by 2050, according to new research.

Economists pitch CBAM update only focused on carbon leakage

A group of economists has put forward ideas to revise the EU’s Carbon Border Adjustment Mechanism (CBAM), arguing the law could be simplified by focusing only on preventing ‘carbon leakage’ across the entire economy rather than addressing specific sectors for which carbon emissions data may be hard to come by.

Trafigura to buy European road fuels and biofuel supplier

Commodities trading house Trafigura on Monday announced it would purchase a major European road fuels and biofuel supplier.

Ukrainian startup secures EU backing to implement DAC carbon removal technology

The EU will provide grant funding to a Ukrainian startup looking to scale up its direct air capture (DAC) technology, with the CO2 intended to be used in agricultural applications.

Irish tech firm targets 1 bln tonnes CO2 sequestration with hemp housing by 2030

Irish software developers have pledged to sequester 1 billion tonnes of CO2 by building housing for 300 million people by 2030 using hemp-based concrete.

VOLUNTARY

KraneShares to liquidate, terminate voluntary carbon market ETF

Asset manager KraneShares will liquidate and terminate its flagship voluntary carbon market exchange-traded fund (ETF), according to a notice posted on Monday.

VCM Report: Buyers sitting on sidelines despite high levels of voluntary carbon credit retirements

Prices failed to budge, liquidity was thin last week, and there was a mix of opinion about the direction of the voluntary carbon market, with sources reporting a flood of new offers posted while others noted the cupboard was starting to run bare of good quality.

Carbon markets key enabler in funding switch to regenerative agriculture, says investor

Carbon finance can be key in supporting farmers transition to regenerative agriculture, according to an investor working at the intersection of climate change and social impact.

Zimbabwe expects voluntary carbon trading to take off this year as project applications flood in -media

Zimbabwe’s government plans to launch a regulatory framework for the trading of voluntary carbon credits in the next year, hoping to generate around $400 million in annual revenues as project investments accelerate, a senior government official told local media.

Nigerian govt takes over disputed land with plans to generate voluntary carbon credits -media

The governor of an oil producing state in Nigeria has announced the takeover of disputed forest land where the authority now wants to produce carbon credits, according to local media reporting.

Canadian carbon offset developer leverages MRV technology in vertical integration rebrand, dual listing effort

A Canadian-headquartered voluntary offset project developer has partnered with an MRV technology firm run by one of its co-founders to pursue vertical integration amid a company rebrand and proposed dual share listing.

Freshwater wetland restoration helps create carbon sinks, but far too slowly for our purposes, study finds

Freshwater wetland restoration can turn degraded wetlands from net carbon sources into carbon sinks, though it takes far too long for Paris Agreement purposes, meaning climate projects should prioritise conserving existing ones, a study has found.

AMERICAS

WCAs sell off after Washington attempts to clarify ballot initiative implications ahead of Q1 auction

Washington Carbon Allowance (WCA) prices sold off on Monday afternoon after the state’s Department of Ecology (ECY) issued a statement attempting to clarify its position on a legislative initiative that could repeal the nascent cap-and-trade scheme.

Mexican government circulates draft regulation for national voluntary carbon registry, price index with Article 6 provisions

The Mexican government distributed a draft regulation for the national voluntary carbon market (VCM) at a stakeholder workshop last week that would create a centralised record of VCM data, a national price index, and authorisation procedures for international carbon trading under Article 6.2 of the Paris Agreement, according to a leaked draft seen by Carbon Pulse.

RFS Market: RINs hover around lowest values in three years as market looks to renewable diesel

Biofuel credit (RIN) values under the US Renewable Fuel Standard (RFS) slightly retraced to begin the month of March but remained in line with lowest values since 2020 as the market continues to monitor D4 credit generation from renewable diesel.

RGGI Market: RGA prices dip on lower volumes, market debates potential pre-auction sell-off

RGGI allowance (RGA) prices retreated slightly from near-record highs over the previous week as volume also declined, with traders debating the possibility of a further sell-off heading into next week’s Q1 auction.

ASIA PACIFIC

Australian carbon industry body introduces mandatory transition plan requirements for eligible members, sponsors

Large polluters will be required to have decarbonisation plans published by the middle of next year to be eligible for full Carbon Market Institute (CMI) membership or to be a lead sponsor at its events, the Australian industry body announced Tuesday as part of a policy shake-up.

Australian First Nations group seeks interest in developing Fiji’s carbon industry

An Australian carbon trade company and a Fijian NGO are seeking interest from stakeholders to join a working group to nurture the country’s emerging carbon industry, alongside the national government, they announced.

Korean shipbuilding giant eyes onboard carbon capture systems

One of the world’s largest shipbuilders has built an alliance to develop onboard carbon capture systems (OCCS) as part of its decarbonisation plan, with a pilot project set to be launched next year.

Korean investor eyes forest carbon project in Mongolia

A South Korean offset project developer and investor has deepened its partnership with a provincial government in Mongolia in the hope of generating international carbon credits from forestry projects.

BIODIVERSITY (FREE TO READ)

French asset manager plans major investments in nature restoration, backs biodiversity certificates initiative

A large private investment house is seeking to scale up investments in nature restoration projects as part of a broader strategy to become a major player in the burgeoning biodiversity market, a company executive said.

Italy to map all coastal habitats in marine ecosystem restoration push

Italy has begun the “unprecedented” process of mapping its entire 7,500-km coast through remote and acoustic technologies in an attempt to better inform public conservation and restoration policies.

Sovereign wealth fund drops Indonesian conglomerate over threatened species risk

The Norwegian sovereign wealth fund will sell off ownership stakes in a major Indonesian conglomerate after concerns that its gold mining ambitions in Sumatra represents an unacceptable threat to a critically endangered species of orangutan.

Global land affected by water flow deviations nearly doubled from pre-industrial times, study finds

Human activity in the past century has dramatically altered freshwater flows, jeopardising their capacity to regulate vital ecological and climatic processes, a study has found.

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Job listings this week

• *Feature Writer/Sub-Editor, Carbon Pulse – North America
• *Environmental Markets Correspondent, Carbon Pulse – Latin America
• Technical Manager (Finance), Markets and Standards, Voluntary Carbon Markets Integrity Initiative – Remote (Global)
• Senior Director, Carbon Finance Origination and Deal Lead (Africa), Conservation International – Arlington, VA
• Carbon Dioxide Removal Asset Manager, Microsoft – Redmond/Atlanta/San Antonio/Phoenix
• Director, Carbon Markets, HSBC – London
• Commercial Director (Exchange), Climate Impact X – London
• Senior Business Development Manager, Abatable – London
• Product Marketing Manager, Abatable – London
• Carbon Trader, INEOS Energy – London
• Carbon Originator (Commercial Negotiator), AGL – Melbourne
• Forest Carbon Biometrician, Weyerhaeuser – Georgia/Arkansas/Washington
• Applied Postdoctoral Research Fellow, Nature Based Carbon Offsetting, Sustainable Earth Institute, University of Plymouth – Plymouth

*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

INTERNATIONAL

Persaud in the house – The board of the UN Loss and Damage Fund established at COP27 in Sharm el-Sheikh to channel finance to climate-vulnerable countries has been announced, and its membership includes Barbadian finance expert Avinash Persaud. Persaud has achieved international recognition as one of the chief architects and proponents of PM Mia Mottley’s Bridgetown Initiative, which contains, via several drafts, proposals promoting concessional finance flows to developing countries for green transition and climate resilience. The Bridgetown Initiative emphasises reforming multilateral development banks to unlock new finance for the benefit of developing countries by leveraging existing capital. It was published originally in the lead-up to COP27 in 2022 and revised through 2023 as the World Bank and IMF Spring Meetings took place in April, and the Paris Summit for a New Global Financing Pact, co-hosted by Mottley and French President Emmanuel Macron, took place in June.

Climate convening – The UAE will convene country leaders and representatives from global financial institutions at a special meeting in June to scale up financial commitments for this year’s round of climate talks at COP29 in Baku, Azerbaijan. The idea is to significantly ramp up climate finance for developing countries, with the new goal designed to replace the current target of $100 bln a year, which rich countries failed to deliver annually by the end of the last decade. (Bloomberg News)

EMEA

Central CCS hub – The North Sea could become a “central storage camp” for the CO2 emissions from polluting industries across Europe, Norway’s Energy Minister Terje Aasland told CNBC. The country’s Longship project will facilitate an industrial CCS value chain of great value to Norway and Europe, while also demonstrating the potential of CCS technology, Aasland said. The $2.6 bln Longship project is planned in two phases. The first is designed to have an estimated storage capacity of 1.5 mln tonnes of carbon annually over 25 years, while the second phase would have a capacity of 5 mln tonnes of carbon. The Norwegian government will fund 80% of the project’s first phase, with the remainder requiring private funding.

Giga Drain – UK finance minister Jeremy Hunt is to announce up to £360 mln of funding for a series of manufacturing and research and development projects as part of spending announcements due this week, with green industries expected to be among the major beneficiaries, BusinessGreen reports. The run-up to a ‘Budget’ announcement this week has been dominated by briefing and speculation on the affordability of proposed tax cuts, but the finance ministry confirmed this morning the government would look to provide new funding for a number of green technology programmes. Most notably, £200 mln in joint public and private sector investment is to be earmarked for zero-carbon aircraft technology development, while a further £73 mln is to be awarded to green in automotive technology projects. Hunt is also set to announce a £120 mln increase to the Green Industries Growth Accelerator (GIGA), taking the total value of the fund to almost £1.1 bln.

ASIA PACIFIC

Power merger – Australia’s only publicly-listed renewable energy company, Genex Power, has recieved a non-binding takeover offer from Japan’s J-Power, it told the market Monday. The Japanese utility has offered a scheme-of-arrangement to acquire all of Genex’s shares for a 50% premium of the current share price of 18.5 cents. It has also offered an off-market takeover bid. J-Power already has a 50% stake, and is a joint development partner, of Genex’s Kidston Stage 3 Wind and Bulli Creek Solar and Battery projects and holds 7.72% of Genex’s current shares. The company also extended a A$35 mln corporate loan facility to Genex in 2023. Genex said it had appointed Goldman Sachs and Gilbert + Tobin as their financial and legal advisers while it considers the deal.

Concrete partnership – Australian minerals exploration firm Suvo has signed an agreement with Dowsing Group, a construction firm, to develop low-carbon concrete formulations using Suvo’s licenced intellectual property. The formulations will be used by the Dowsing Group in selected end-use applications such as rigid pavements, road barriers, hardscapes, and profiling, among other services. Dowsing Group specialises in slipform concrete. The group has projects spanning Western Australia, the Northern Territory, New South Wales, Victoria, and New Zealand. The two firms have signed a non-binding agreement for 12 months and will explore the viability of a long-term relationship.

AMERICAS

Conservation funding – The US Department of Agriculture (USDA) opened signup from Mar. 4-29 for its General Conservation Reserve Program (General CRP) and launched a new conservative initiative – Working Lands for Wildlife’s Northern Bobwhite Pilot Project. Both programmes give producers avenues to conserve wildlife habitat while achieving other conservation benefits, including sequestering carbon and improving water quality and soil health, Sunday’s press release said. General CRP, offered through USDA’s Farm Service Agency (FSA), “helps producers and landowners establish long-term, resource-conserving plant species, such as approved grasses or trees”. Additionally, General CRP includes a Climate-Smart Practice Incentive to increase carbon sequestration and reduce GHG emissions by helping producers and landowners establish trees and permanent grasses, enhance wildlife habitat, and restore wetlands. The Northern Bobwhite Pilot Project provided $13 mln for fiscal 2024 is for producers to manage habitats for the bobwhite and other game and non-game species across Alabama, Arkansas, Florida, Georgia, Illinois, Iowa, Kansas, Minnesota, Mississippi, Missouri, Nebraska, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.

EPA expert application – The US EPA is inviting applications to join the influential Clean Air Scientific Advisory Committee (CASAC), with a particular interest in candidates with expertise in epidemiology, environmental engineering, biostatistics, and a half-dozen other disciplines. In the fall, at least three vacancies will open up at the agency as the current incumbents rotate out after serving the customary two three-year terms. Applications are due on Apr. 3, and appointments will be made by EPA Administrator Michael Regan.

Pipeline heavyweights – US fuel refiner Valero will capture and transport CO2 from eight of its corn ethanol biofuel plants via the embattled Summit Carbon Solutions proposed $8 bln pipeline, Bloomberg reported Monday. Valero joins another bioethanol producer Poet who had signed onto Summit’s pipeline in January. This would bring more than half of the US corn ethanol industry part of the multi-state pipeline project, or about 57 plants across the upper Midwest, Summit said. Summit plans to refile its permit application that was denied Sep. 2023.

VOLUNTARY

Verra comments – Verra has submitted comments (PDF) on the Dec. 2023 International Organization of Securities Commissions (IOSCO) Voluntary Carbon Markets Consultation Report.  The registry says that it is encouraged that IOSCO appears to acknowledge the appropriate, limited role that financial regulators can and should play in the VCM, given that environmental standards, as integral pillars of the VCM, require additional expertise to that traditionally held by financial regulators. Read more here.

SHIPPING

Ammonia ready – MAN Energy Solutions will be ready to offer ammonia-powered engines to its clients after 2027, helping them to cut their shipping emissions as regulations ramp up on the shipping sector from the EU ETS to the International Maritime Organisation (IMO). Later this year, MAN Energy Solutions expects to deliver its first-ever engine fuelled by ammonia for installation on a new vessel in Japan, and the ship will take a year or two to undergo trials, while fuel supply, bunkering infrastructure, and safety standards have to be created. So actual sales of ammonia engines are unlikely before 2027, a company exec has said. The shipping industry transports around 90% of world trade, but accounts for nearly 3% of the world’s CO2.

SCIENCE & TECH

MethaneSAT launch – The world’s first environmental non-profit satellite to unveil hidden methane emissions, known as MethaneSAT, launches today (Mar. 4). The satellite will lift off aboard a SpaceX Falcon9 rocket and will be focused on helping protect the Earth’s climate by accelerating GHG reductions from oil and gas operations. Methane is known to be almost 30 times as potent a greenhouse gas than CO2 in the short term, while methane emissions across US oil and gas supply chains have been found to be many times higher than expected by the US Environment Protection Agency (EPA). The satellite is backed by Alphabet’s Google and the Environmental Defense Fund group and will launch from California, joining a growing fleet of spacecraft designed to help fight climate change.

AND FINALLY…

Vroom vroom – DHL and Formula 1 have extended their multi-year partnership, with a significant focus on sustainability by increasing the use of biofuel-powered trucks for transporting the car racing championship’s equipment. After successfully introducing trucks fuelled by hydrotreated vegetable oil (HVO) in the European leg of the Formula 1 season last year, DHL has now doubled its fleet of biofuel-powered trucks to 37. These trucks, which will carry up to 1,400 tonnes of freight to each race, are reported to reduce carbon emissions by 83% compared to diesel trucks. The 2024 Formula 1 season, beginning in Bahrain and spanning 21 countries across five continents, marks DHL’s 20th anniversary as the Official Logistics Partner. Both organisations said they are committed to achieving net zero emissions by 2030, with Formula 1 focusing on reducing emissions from logistical operations, which constitute about 45% of its total carbon footprint. DHL’s sustainability efforts also include the introduction of an eco-friendly motorhome for European races, equipped with solar panels and recycling facilities, further emphasising its goal to achieve net zero logistics-related emissions by 2050. (edie)

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