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TOP STORY
Forestry conservation projects face chop in DRC after govt committee reassesses concession contracts
A number of forestry conservation schemes in the Democratic Republic of Congo, including a Verra-approved REDD+ avoided deforestation project that has sold some 1.3 million voluntary offsets to date, are in line for the chop after a senior government committee recommended that their concession contracts be cancelled for breaking the law.
CARBON FORWARD ASIA
Private sector must pony up trillions of dollars world needs for climate goals
The money needed to meet global climate goals will amount to trillions of dollars annually, and need to come from the private sector in addition to governments and multilateral banks, a conference heard Thursday.
South Korea plans to launch carbon-linked financial product, market reaction may be lukewarm
South Korea is set to introduce carbon market-linked financial products targeting retail investors this year, the first in Asia to do so, though the new policy may not arouse much interest in the over-supplied market, experts told Carbon Pulse.
CCER supply may remain limited this year as China expected to take wait-and-see attitude
China may see limited supply of carbon credits in the coming months even after the official relaunch of the national voluntary programme, as the government is taking a cautious approach to ensure offset quality and avoid oversupply issues, the Carbon Forward Asia conference heard Thursday.
Let ASEAN’s varied carbon markets bloom, conference hears
A single carbon market for the Association of Southeast Asian Nations (ASEAN) region similar to the EU’s emissions trading scheme is not the way forward, and each country should be left to develop their markets independently, a conference heard Thursday.
Global shippers frustrated at inability to open EUA accounts to plan for EU ETS costs
International shippers have become exasperated they have only recently been able to open up accounts in order to start purchasing EUAs to meet their compliance obligations under the EU ETS, panellists at Carbon Forward Asia said Thursday, as the sector explores its options to decarbonise.
EMEA
FEATURE: EU’s carbon removal certification law paves way for negative emissions in waste-to-energy sector
The waste-to-energy sector welcomed a political agreement last month on the EU’s Carbon Removal Certification Framework (CRCF), saying the first incinerators fitted with carbon capture technology could see the light as soon as 2028-29, after their inclusion in the EU ETS.
EU27 formally backs exit plan from controversial Energy Charter Treaty
The Council of EU member states on Thursday backed a compromise proposal by the Belgian EU Presidency laying out a procedure for the bloc to quit the 1990s Energy Charter Treaty, which has attracted criticism from EU governments for hampering attempts to phase out fossil fuels.
CBAM may lead to higher prices, emissions from UK power exports to EU -report
The EU’s Carbon Border Adjustment Mechanism (CBAM) could push up the cost of the bloc’s electricity imports from the UK, deterring the development of low-carbon projects and leading to higher carbon emissions on both sides, according to analysis released on Thursday.
Market freedom, public support should be amongst top priorities in setting EU’s new climate agenda -report
Avoiding over-regulation, increasing public support, strengthening international climate policy, and ensuring the bloc’s industry is competitive should be prioritised by the next European Commission, a report said Thursday.
Galicia presents carbon market decree for consultation as regional voluntary schemes emerge in Spain
The autonomous region of Galicia in Spain opened legislation to structure a local voluntary carbon market (VCM) for public consultation on Wednesday, following a similar regional initiative announced by Catalonia in December and in time with Murcia’s proposal on Tuesday.
Study outlines France’s strong potential for carbon removals
France has the capacity to diversify its carbon sinks and achieve climate neutrality, or even become net negative, before 2050, according to a new study published on Thursday.
Euro Markets: EUAs post modest drop in volatile trading as profit-taking and new shorts compete
European carbon prices swung violently for a second day on Thursday as continued short covering sustained the market after a weak auction, pushing it above key technical resistance levels, before longer term shorts reasserted themselves in the afternoon and unwound the day’s gains.
French investor, voluntary carbon project developer announce senior hires
A French asset manager and a developer of nature-based voluntary carbon projects have appointed new senior members of their team to focus on their respective carbon credit strategies.
AMERICAS
WCI Markets: CCAs head lower with WCA sell-off post Q1 auction
California Carbon Allowance (CCAs) prices have reversed direction to return to their post-auction lows, while Washington Carbon Allowances (WCA) took a hit after the state attempted to clarify the implications of a voter-led initiative that could upend the cap-and-trade scheme.
Massachusetts Clean Heat Standard could see changes to emissions reduction targets, biofuel use
Massachusetts’ Department of Environmental Protection (DEP) presented potential adjustments to its draft Clean Heat Standard (CHS), as the agency solicits a final round of comments in advance of a new proposal, staff outlined during a community webinar Thursday.
North American firms partner to monitor direct ocean capture
A Montreal-based carbon removal project developer will evaluate direct ocean capture conducted at its facility through a partnership with a US ocean monitoring firm, the firms announced Thursday.
ASIA PACIFIC
PNG REDD+ carbon project hits another road block
Australian resources company Mayur Resources is facing further trouble getting its REDD+ project in Papua New Guinea off the ground, as the country’s National Forestry Authority (NFA) continues to attempt to cancel its permits, the company announced Thursday.
Former Pollination director joins Australian airline as head of carbon markets
A former director of advisory firm Pollination has joined Australian airline Qantas as its head of carbon markets.
INTERNATIONAL
Deep sea mining could lead to multi-billion toll of natural capital destruction
Deep sea mining for resources such as polymetallic nodules used in the energy transition could lead to more than $500 billion in value destruction, including at least $465 bln of natural capital loss, according to a report which finds preserving the deep sea to be worth at least 10 times more than exploiting it.
VOLUNTARY
Direct air capture developer signs carbon removals offtake deals with airlines
A developer of direct air capture facilities has inked a deal with two airlines for an undisclosed volume of carbon removals delivery out to 2030.
BIODIVERSITY (FREE TO READ)
FEATURE: Jurisdictional issues hinder marine biodiversity credit market development, experts say
Establishing a biodiversity credit market for marine ecosystems is much more challenging than setting one up for land-based environments, as ownership and measurement issues are hampering its development, the head of a non-profit has said.
INTERVIEW: Forest investor mulls generating biodiversity credits from 7,000 hectares
A London-based investor is considering preparing sites in Scotland covering up to 17,000 acres (6,880 hectares) of collective land for the generation of biodiversity credits, Carbon Pulse has learned.
Qantas commits A$10 mln to help restore Great Barrier Reef
Australian airline Qantas has partnered with the Great Barrier Reef Foundation as well as committing A$10 million ($6.5 mln) over 10 years to roll out what it described as world-first coral restoration technology, it announced Thursday.
“Explosive” demand for nature-based solutions in Europe, survey shows
Demand for nature-based solutions in Europe is increasing “exponentially” for some organisations, with companies calling for support to bridge the skills gap and ramp up supply, a study has shown.
Some large investors support nature in voting policies in US and Europe, report says
Some large investors in the US and Europe have supportive voting policy stances for nature and biodiversity, although not all of them, a report by data company Morningstar has found.
Biodiversity Pulse: Thursday March 7, 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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MEDIA ROUNDTABLE
Corporate views on voluntary carbon markets revealed – A new survey of more than 180 executives and managers will uncover private sector perspectives on voluntary carbon markets in corporate climate action. The survey results, coordinated by the We Mean Business Coalition, will identify the barriers and opportunities for companies, and will offer a number of recommendations for improving market infrastructure to unlock more corporate climate finance. Journalists can register here for an embargoed online roundtable on Wednesday, March 13 at 1400 CET (0800 EST) to discuss the results with the authors.
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 Turkiye – May 9-10, Izmir: With the launch of the pilot ETS in Q4 and a burgeoning voluntary carbon market in the country, this event will give attendees an understanding of the significant impact these schemes, as well as the EU’s CBAM, will have on your business. Full conference agenda coming soon. Secure your spot
Argus Asia Carbon Conference – May 13-15, Kuala Lumpur: Join over 200 industry leaders and senior government officials at the Argus Asia Carbon Conference in Kuala Lumpur on 13-15 May 2024. Connect with key players and explore new opportunities in the region as we discuss innovations in carbon technology, advances in voluntary and compliance markets, the impact of CBAM, financing, nature-based project developments, and more. With ministerial addresses and keynote sessions from Petronas and SaraCarbon, this is your opportunity to gain valuable insights on pan-Asia’s evolving carbon markets. Register
Argus Europe Carbon Conference – May 21-23, Nice: Plan your carbon strategy through market-driven decarbonisation solutions at the at the Argus Europe Carbon Conference on 21-23 May in Nice, France, as we examine the EU ETS and other global compliance structures, voluntary carbon markets and their intersection with carbon abatement industries. This year’s agenda covers the integration of the maritime sector into the EU ETS, the impact of Europe’s exported carbon price through CBAM, developments in carbon removal technologies, voluntary certification methods, and developments around diverse, high-quality credits from Verra and many other leading standards. Register your place to explore new opportunities within Europe and globally.
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
Carbon Forward Expo – October 8-10, London and Online: Save the date! More info coming soon…
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Clean energy boost – A hefty amount of 100 GW of global renewable energy capacity is expected to go out to tender this year, over 60 GW of that to offshore wind, with the overall volume set to rise as the year goes on to match 2023 levels, Wood Mackenzie finds in its latest analysis. Last year, some 137 GW of renewable capacity was awarded via government tenders, representing a 10% year-on-year increase, despite sector cost headwinds, tensions with logistics, and the energy crisis. Offshore wind, onshore wind, and solar PV account for nearly 91% of the allocated volume, while the remaining 9% was awarded to hydro, biofuel, geothermal, solar thermal, and tidal technologies, the analysis found. Asia Pacific received 67% of the contracts, followed by EMEA at 27%, and lastly by the Americas. The researchers also note the opposing trends of intense competition in offshore wind resulting in subsidy-free tenders, versus undersubscribed tenders for onshore wind and solar PV.
Cashing in on Art. 6.4 – Developers have applied for 10 gas-fired power plant projects to be transferred over from the old, discredited Clean Development Mechanism to the new Article 6.4 market before the deadline on Jan. 1, Climate Home News reports. If approved, the projects, based largely in Asia, would transfer more than 10 mln old gas-linked credits to the new market. The biggest project is a gas-fired power plant in Fujian, China, built by Chinese state oil and gas company CNOOC and Japan’s Mitsubishi in 2010. The companies have calculated that the plant would emit 2.3 Mt of CO2 a year when fully operational, but noted that electricity would otherwise be generated from coal and emit over 5.3 Mt a year. Carbon Pulse reported in January that some 1,225 carbon activities registered under the Kyoto-era Clean Development Mechanism had taken the first steps towards transitioning to the Article 6.4 mechanism.
EMEA
CCS expanding in Norway – The Norwegian government has opened new acreage in the country’s North Sea waters for applications to explore CO2 storage opportunities. The Ministry of Energy has proposed two areas that will be available in the sixth round overseen by the authority. Interested parties will be able to submit bids until 24 April, with awards being made in the months following the applications deadline. “‘I am very pleased that several companies want storage areas for commercial storage of CO2 on the Norwegian continental shelf,” said Minister of Energy Terje Aasland. “Today’s announcement for applications is another step on the road towards making Norway a central arena for CO2 storage as an important climate measure for Europe.” The Minister has previously said Norway could establish offshore storage capacity for 50 tonnes of CO2 by the early 2030s, according to Upstreamonline.
Warning shot – Ursula von der Leyen has received a warning shot from more conservative parts of her center-right party to stop embracing Green Deal policies — and the French president — in her bid to stay in power, Politico reports. Her crowning as the European People’s Party’s lead candidate for June’s European Parliament election was never in doubt, yet nearly one in five delegates who cast a ballot voted against her. EU leaders will ultimately decide who to place in the role after the European Parliament election in June, but her nomination as lead candidate solidified von der Leyen’s status as frontrunner. Some 400 of the 499 total votes cast were in favor of von der Leyen, with 10 votes voided, and 89 votes against her, meaning some 18% of the EPP voted against her.
ASIA PACIFIC
Had enough – Tesla has launched a scathing attack on Australia’s main auto industry lobby group, accusing it of attempting to delay climate action by repeatedly making “plainly false” claims to the public about an Albanese government clean car policy, the Guardian reports. In a submission to the government about the design of a vehicle efficiency standard, Tesla sharply criticised the Federal Chamber of Automotive Industries (FCAI), an organisation in which it holds a board seat and is an active member.
Investments – Australia’s Clean Energy Finance Corporation (CEFC) has committed up to A$50 mln ($33 mln) to accelerate the country’s switch to electric vehicles, it announced Thursday. The transaction, with Angle Auto Finance (AAF) aims to get as many as 20,000 new EVs onto Australia’s roads over the next two years. AAF is Australia’s largest independent retail auto financier and will draw on warehouse finance to speed the turnover and recycling of credit for major vehicle dealer and supplier networks, allowing them to increase the volume and range of EVs they bring into the country, CEFC said. This is the first known floorplan finance arrangement specifically targeting supply issues, one of the major barriers to growth of Australia’s EV market, the corporation said.
AMERICAS
HR complaint – The UN’s Green Climate Fund (GCF) has pulled out of a forest conservation project in Nicaragua after local community groups complained about a lack of protection in the face of escalating human rights violations in the region. The move marks the first such decision taken by the GCF since its creation in 2010. In 2020, the fund committed $64 mln to the programme run by the Nicaraguan government and the Central American Bank for Economic Integration (CABEI), aiming to reduce deforestation in the UNESCO-designated Bosawas and Rio San Juan biosphere reserves. The GCF said it had not paid out any funds before terminating its support for the project and no activities had yet taken place. (Climate Change News)
Maryland cap-and-invest hearing – The Maryland General Assembly’s Economic Matters Committee held a public hearing Thursday on legislation proposing an economy-wide cap-and-invest programme for the RGGI-participating state. During the hearing, Delegate Dana Stein (D) argued that House Bill (HB) 1272 is necessary to achieve Maryland’s emissions reduction goals, and received backing from a number of environmental organisations, including the Maryland League of Conservation Voters and the Environmental Defense Fund. On the other hand, representatives from the Mid Atlantic Petroleum Distributors Association and the Mid Atlantic Propane Gas Association spoke against HB 1272, arguing that it would increase energy prices and harm the economy.
Overruled – The Oregon Court of Appeals rejected on Wednesday a request from 20 cities, Marion County, and several business associations to invalidate a package of 89 rules called Climate-Friendly and Equitable Communities drafted in 2022, local outlet OPB reported. The group had sued Oregon’s Land Use Department and the Land Conservation and Development Commission, claiming state agencies didn’t follow rulemaking procedures and exceeded authority over local governments with burdensome regulation. The courts upheld most of the package of rules. However, the courts did side with the plaintiffs on two items: 1) not requiring pre-approved road projects to resubmit analysis on whether they met the state’s new climate standards; and 2) not invalidating transportation plans that didn’t meet the state’s standards, but giving cities a list of steps to come into compliance.
VOLUNTARY
Green light – Greenlyte, a German direct air capture startup that announced it had raised over €10 mln this week, believes it will be able to reduce its price per removal below $100 once it reaches annual scale of 10,000 tonnes, it told Sifted. The DAC developer is currently removing CO2 at about $400-500 per tonne and has capacity of 100 tonnes of annual removal, the article stated.
ESG code – BeZero has signed up to the ESG Ratings Code of Conduct from the International Capital Market Association (ICMA) and the International Regulatory Strategy Group (IRSG), reinforcing its position as an advocate for robust disclosures and increased transparency in the carbon markets.
Good shift – Exiting livestock practices in Uganda, such as rotating the breed of livestock, composting, and repurposing manure, can be used to limit the GHG emissions associated with cattle farming, according to findings from the Support to Rural Sustainable Transformation (SIRGE) project funded by the EU. For example, manure management practices could be used to capture and use methane for biogas production, potentially procuring carbon credits. However, some Ugandan farmers have expressed trepidation about biogas, noting that the biogas digesters available are often sub-standard and short lived. Previously, some experts had suggested decreasing herd size to lower emissions.
INVESTMENT
Biomethane blast – Hartree Partners UK has acquired a 50% share in biomethane expert Botres Holding, a supplier of ultra-modern industrial biogas plants and biorefineries in Austria, Czech Republic, Poland, Italy, Spain, and Turkey. Botres offers a highly efficient biowaste treatment system, covering the entire processing chain from pre-treatment of all types of organic waste to the efficient production of green energy. The 2012-founded company has built numerous biogas plants across Europe and Turkey and serves some of the world’s largest waste management and infrastructure companies. Hartree is partnering with Botres to develop a European biomethane production business, with a focus on Renewable Energy Directive (RED) compliant feedstocks. Hartree is co-owned by its partners and funds managed by Oaktree Capital Management.
SCIENCE & TECH
Record heat (in winter) – Last month was the warmest February on record globally, with an average temperature of 13.54C, according to the latest figures from the EU’s Copernicus Climate Change Service. This is the ninth month in a row that was the warmest on record for the respective month of the year, and 1.77C warmer than an estimate of the February average for 1850-1900, the designated pre-industrial reference period. European temperatures in Feb. 2024 were 3.3C above the 1991-2020 average for February, with much-above average temperatures experienced in central and eastern Europe. It was the second warmest on record, after 2019/2020. Outside Europe, temperatures were above average over northern Siberia, central and northwest North America, the majority of South America, across Africa, and in western Australia. The global-average temperature for the past 12 months (March 2023–February 2024) is the highest on record.
Truly green methanol – The UK Department for Transport and Innovate UK has stumped up funding for a green methanol project that it said could lead to a net zero shipping corridor between Northern Ireland and the northwest of England for roll on/roll off freight ferries. The cash is part of the £206 mln Clean Maritime Demonstration Competition Round 4, and will fund research by B9 Energy Storage and the University of Teeside. Green methanol would be made at a plant in the Port of Larne in Northern Ireland from green hydrogen and CO2, using wind power to drive an electrolyser. Researchers are now trying to work out how to capture the CO2 emissions during the ship’s voyage in the same tank containers that delivered the green methanol. The CO2 would then be delivered back to the plant in Northern Ireland, to set up a circular CO2 economy. The Domestic Green Shipping Corridor would have “true-zero” emissions, would not be reliant upon limited supplies of bio-derived CO2 or direct air-captured CO2 and would not need any carbon offsetting to meet net zero objective, according to Teeside University.
Sorbent success – DotzEarth, a developer of solid sorbents for CO2 capture from industrial flue gas, says that it has achieved a three-fold increase in absorption capacity compared to activated carbon sorbents currently on the market. The company has demonstrated the enhanced performance of its technology in a laboratory overseen by Norway’s SINTEF, Europe’s largest research institution for energy and climate technologies, proving that its sorbent has significantly higher selectivity of CO2 versus nitrogen and that it has far lower regeneration energy requirements. Dotz expects to move from laboratory-scale to an industrial pilot this year, it told Carbon Pulse in a recent interview.
AND FINALLY…
Not completely a porky – A Danish court ruled on Mar. 1 in favour of the Vegetarian Society of Denmark and The Climate Movement in their case against meat giant Danish Crown. The case centred around Danish Crown’s campaign claiming that “Danish pig is more climate-friendly than you think” and promoting “climate-controlled pig” to consumers. In its ruling, the court determined that “climate-controlled pig” indeed misrepresented the climate impact of pork production, contravening Section 5 of the country’s Marketing Act. Still, the court found that the phrase “more climate-friendly than you think” was sufficiently documented, backing Danish Crown’s argument that this statement should not be read as a claim that pork is climate friendly per se but rather “more climate friendly than other meat products”. The Vegetarian Society of Denmark rejoiced at the verdict, saying it sends “a resounding message, not only within Denmark but throughout Europe … that meat production, including pork, has a huge climate impact”. Veggie campaigner Rune-Christoffer Dragsdahl added that the court’s verdict should encourage others in Europe to do the same and “hold meat companies accountable for their damage to the climate and the environment.”
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