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TOP STORIES

WCI Markets: CCAs plummet as much as 7.6% as stops triggered

California Carbon Allowance (CCA) prices plunged as much as 7.6% on the day Wednesday, with traders reporting lower stops being triggered and heavy selling ahead of options expiring on Friday.

Washington state’s first carbon permit auction of 2024 settles near floor, futures tumble 13%

Washington’s Q1 auction settled less than $2 from the scheme’s floor price and about 50% below where the prior sale had cleared, results published Wednesday showed, as growing uncertainty surrounding the future of the state’s nascent cap-and-invest programme deterred buyers and weighed on the secondary market.

AMERICAS

Pennsylvania Governor Josh Shapiro proposes state cap-and-trade programme, RGGI exit

Governor Josh Shapiro (D) is looking to establish a standalone cap-and-trade programme for the state of Pennsylvania and to formally leave the Regional Greenhouse Gas Initiative (RGGI), according to an gubernatorial energy strategy released Wednesday.

FEATURE: Next wave of orphaned oil and gas wells in the US offers vast methane abatement potential

The next wave of orphaned oil and gas wells is about to crop up in the US, offering significant potential to generate methane abatement credits.

California ARB offset issuance picks up in March, hovers below 2023 levels

California regulator ARB has issued the highest number of compliance-grade offsets thus far this year, yet year-to-date totals continue to lag 2023 issuance, data published by the agency showed.

VOLUNTARY

‘Trial by media’ fears hit voluntary carbon market after Verra shuts out developer over magazine article

Concerns have been raised about what some are calling ‘trial by media’ in the voluntary carbon market (VCM) after Verra said it froze the registry account of a developer in the wake of allegations made in a magazine article because it was a ‘unique situation’, contrary to the standard body’s usual protocol.

Apple’s nature-based carbon removal fund boosted to $280 mln

Two corporations that supply giant US technology company Apple have committed to invest a combined $80 million in a nature-based carbon removal fund, bringing its total funding to $280 mln.

Verra revises improved forest management protocol to include carbon credit label

The update, announced by standards body Verra on Wednesday, would make the improved forest management (IFM) methodology the first to allow generation of both emissions reductions and carbon dioxide removals-labelled voluntary carbon credits.

Financial regulators risk overstepping in new proposals for voluntary carbon market, says industry body

Financial regulators should stick to issuing guidance on voluntary carbon market (VCM) trading and clarifying common definitions instead of regulating projects or imposing requirements such as public pricing, according to an industry body.

Telecommunications firm makes voluntary carbon credit purchase from US direct air capture developer

A Texas-based telecommunications company will purchase CO2 removal (CDR) credits from a US developer of direct air capture (DAC) facilities, the firms announced Wednesday.

Database, index launch to track DAC development, 20 most traded voluntary carbon credits

A data resource, launched Wednesday, hopes to shed light on the global development of direct air capture (DAC), while a new index from the same firm will track the price of the most commonly traded credits in the voluntary carbon market.

Switzerland-based direct air capture firm opens US headquarters

A world-renowned direct air capture (DAC) developer based in Switzerland announced the opening of its US headquarters in Texas, eying a tripling of its American team by the end of 2024.

NGO launches hub for nature-based solutions to help children amid climate crisis

An international NGO launched a nature-based solutions hub on Wednesday, seeking to leverage the voluntary carbon market (VCM) to fund community-based projects for children and the climate.

EMEA

FEATURE: EU weighs up its options on future inclusion of carbon removals in the ETS

The European Commission will issue a report by July 2026 on how to include carbon removals in the EU ETS, with experts ultimately supportive of the idea but warning of the risks it could pose.

2030 climate targets ‘within reach’, spotlight now turning to carbon removals, EU says

The EU is still on track to cut its net greenhouse gas emissions 55% below 1990 levels by 2030 and reach climate neutrality by mid-century – with the help of carbon removals among other emerging technologies, according to a European Commission review of the bloc’s progress towards the objectives.

ANALYSIS: A high price on EU agricultural emissions could boost fairness without hurting income

A tax-and-rebate policy could decrease income inequality within the EU’s agricultural sector without affecting total revenues or drawing down national budgets, even at a high carbon price, researchers say.

Euro Markets: EUAs resume decline after March expiry as position data shows small cut in fund shorts

European carbon prices resumed their downward trajectory on Wednesday, unwinding the remainder of their gains from last week’s rally after a brief pause on Tuesday, as weekly positions data from the main exchanges showed investment funds had reduced their net short position by less than traders had been expecting, boosting the confidence of the bears.

Europe’s clean energy boom could be stifled by lagging grid upgrades -report

Europe’s clean energy boom risks being thwarted by lagging improvements of its electricity grid networks, unless policymakers and operators act quickly to unlock investments, according to analysis released on Wednesday.

Hungary and Poland extend coal mining and power generation

A coal-fired power station in Hungary and a mine in Poland have been granted more time to operate as part of separate decisions, reported in local media on Wednesday, drawing threats of legal action from environmental groups that say the moves contradict national climate targets.

EU investment bank to invest millions in Mongolian forests

The international arm of the European Investment Bank, EIB Global, will support projects for urban development and sustainable forestry in Mongolia, under the largest-ever financing agreement signed on Tuesday within the EU Global Gateway initiative.

Canadian sustainable commodities supplier opens carbon trading desk in Rotterdam

A Canadian sustainable commodities supplier has opened an environmental commodities desk in the Netherlands, which will focus on trading both compliance and voluntary carbon as well as other markets.

ASIA PACIFIC

Taiwan’s record drought reverses forests’ ability to absorb carbon -study

Taiwan’s unprecedented drought has not only caused a great economic impact on the global semiconductor industry, but also significantly changed the carbon sequestration capacity of the domestic forest ecosystem, a study has found.

SK Market: Monthly KAU auction fully subscribed for the first time in 18 months after govt slashes volume

South Korea’s monthly CO2 permit auction on Wednesday was overbid after the government’s recently introduced flexible mechanism allowed volumes to be slashed, though the demand outlook remains blurry given persistent regulatory uncertainty.

Canada, ADB plan $260 mln climate, nature fund for Asia

Canada plans to establish a $260-million trust fund for Asia through the Asian Development Bank (ADB) to promote private sector funding in projects involving climate, nature-based solutions, and gender equality in the continent, pending approval from the bank’s board.

Superannuation spend on oilers is falling, but more needed -activist investor

Investment from one of Australia’s largest sources of cash, superannuation or retirement funds, is dropping when it comes to Australian Securities Exchange-listed oil and gas companies, an activist share group said Wednesday.

Australia, PNG launch climate finance initiative with GGGI

The governments of Papua New Guinea and Australia, alongside the Global Green Growth Institute (GGGI), have launched a A$20 million ($13.2 mln) climate finance programme.

INTERNATIONAL

Methane emissions from fossil fuels keep rising, when they could quickly be stemmed -IEA

Global methane emissions reached a record high in 2023, when they need to fall by three-quarters within the decade in order to help limit the temperature rise to 1.5C, according to International Energy Agency (IEA) data published on Wednesday.

Banks to deepen climate commitments, extending efforts to capital markets activities

Members of a bank-led initiative convened by the UN have overwhelmingly voted to adopt an updated version of guidelines for the setting of climate targets by the sector, extending the scope to include capital markets activities.

Climate framework laws having positive impact on policy focus, say researchers

A report has highlighted the positive influence of climate framework laws on progress towards green goals, focusing on examples in Germany, Ireland, and New Zealand.

BIODIVERSITY (FREE TO READ)

New Zealand suspends requirements for councils to consider Significant Natural Areas in planning

The right-wing coalition government has announced local councils will no longer have to comply with Significant Natural Areas (SNAs) for three years, as it aims overhaul the country’s Resource Management Act to ramp up project approvals.

UK to launch consultation on carbon and biodiversity credits

The UK government is planning to launch a consultation to explore how the nascent international biodiversity credit markets can “mutually reinforce” existing carbon credit markets.

Gaps in ecosystem services database hampering nature policy, study finds

The capacity of ecosystem service valuation estimates to inform decision-making on nature conservation could be hindered by existing data gaps, a study has found.

Regen Network sells two-thirds of biodiversity credits from jaguar pilot

Environmental trading platform Regen Network has sold two-thirds of the biodiversity credits available from a jaguar conservation pilot over a 10,000-hectare area in the Ecuadorian jungle, it said on Wednesday.

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CONFERENCES

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

Job cuts – Shell plans to cull at least 20% of jobs in its deals team, containing several hundred employees handling mergers and acquisitions, as it continues to restructure its business units in a cost-cutting drive, say people familiar with the matter as reported by Bloomberg. The team have been told there would be a substantial headcount reduction, with further details to be communicated in April. The team is the latest to be beset by job cuts, following similar moves in business units like low-carbon solutions, chemicals, and IT. Shell CEO Wael Sawan has pledged to be ”ruthless” in improving performance and boosting investor returns.

Cargo carbon count – The International Air Transport Association (IATA) and the Smart Freight Centre (SFC) have partnered to provide consistent and transparent CO2 emissions calculations for air cargo shipments, they announced Wednesday. IATA and SFC will work to develop the cargo component of IATA’s CO2 Connect platform, which launched in 2022 with a version for passenger planes. The platform uses primary industry data to provide accurate carbon calculations. They will promote a common methodology in CO2 emission calculations and ensure that they are distributed to the industry’s biggest shippers and freight forwarders in air cargo.

EMEA

Better foresight please – UK plans for climate change adaptation “fall far short” of what is required, according to the government’s Climate Change Committee (CCC), which has looked in detail at the national adaptation programme published by ministers last July. The plan sets out how people, buildings, and key infrastructure such as water, transport, energy, and telecomms networks could be protected from the increasing severity of storms, floods, heatwaves, and droughts that are afflicting the country. The damning verdict delivered Wednesday by the CCC found that the government had no credible plan for improving the UK’s resilience, with most of the national adaptation plan based on existing policy or mechanisms that ignored the need for short-term actions to respond to urgent climate risk. The new plan, although an improvement on previous efforts, requires significant improvement before the next scheduled update in 2028, the CCC found. (The Guardian)

Climate compensation – A Belgian farmer is taking TotalEnergies to court over climate change-driven damage to his farm, with a legal order for the French oil major to halt investment in new fossil fuel projects, Reuters reports. The case represents the first climate change-related lawsuit in Belgium to target a multinational company, and follows a case in which thousands of citizens successfully sued the Belgian government to urge for stronger GHG emission cuts. The cattle farmer in the municipality of Lessines is claiming that TotalEnergies is partly responsible for damage extreme weather did to his operations from 2016-2022 due to its position as one of the world’s top 20 CO2-emitting companies. He is calling for compensation against the successive droughts that reduced the yield of his meadows where he grows fodder for the animals – forcing him to buy feed and, eventually, reduce the size of his herd.

German renewables lag – The European Commission has stepped up its call on Germany to fully adopt the EU’s Renewable Energy Directive, sending Berlin an additional reasoned opinion on why it has not fully transposed the rules. The legislation provides the legal framework for the development of renewables in power, heating and cooling, and transport in the bloc, with an EU-level binding target for renewables to cover at least 32% of the mix by 2030. EU countries were due to transpose the directive into national laws by the end of June 2021. The Commission launched its infringement procedure against Germany the following month, and in May 2022 sent a first reasoned opinion. The second reasoned opinion, announced on Wednesday, follows a response from Germany. Berlin now has two months to respond to the second opinion and take the necessary measures, otherwise the Commission may decide to refer the case to the EU Court of Justice, Brussels said.

Carbon from chemicals – The 12 largest chemical production sites in Germany caused around 23 mln tonnes of carbon emissions in 2022, equating to about 3% of the country’s entire GHG output, according to analysis by the Institute for Applied Ecology. Combined-heat-and-power installations, which are usually gas-powered, were responsible for the largest share of emissions of the sample with about 40%, followed by steamcracker plants for chemicals production at 24%, and ammonia production plants with 14%.  Germany’s largest chemicals production site, the BASF plant in Ludwigshafen, emitted nearly 6 mln tonnes of CO2 in 2022. Switching to renewable power holds huge potential for curbing the carbon footprint of these production sites, and could be used in CHP plants or to produce green hydrogen to replace natural gas, the institute said.

ASIA PACIFIC

Nautical and nice – New Zealand saw the use of a boat powered by a Hydi Hydrogen unit for the first time, the Waikato Times reports. The unit, installed on a boat at the Orakei Koraakoakei Cave and Thermal Park, has cut the boat’s engine emissions by some 80%, at a cost of NZ$17,000 ($10,470). The technology works by attaching a hydrogen unit to an existing diesel engine that injects hydrogen into the combustion, allowing the fuel to burn hotter and cleaner, according to Hydi’s website. The Australian-based company is conducting trials fitting the units to busses across several cities in New Zealand and Australia.

Talents needed – Japan Energy and Metals and Minerals Corporation (JOGMEC) has issued a public tender to recruit companies for the design of advanced carbon capture and storage (CCS) projects, according to a notice recently issued by the state-backed organisation. Interested companies should prepare proposals covering detailed technical and financial evaluations of the whole CCS value chain and participate in a briefing session later this month (Mar. 21), the notice said.

BEEfriending – India and Bhutan have signed an agreement to cooperate in the areas of energy efficiency and energy conservation, the Indian government announced Wednesday. Under the MoU, which was signed between India’s Bureau of Energy Efficiency (BEE) and the Bhutanese Department of Energy, India will assist Bhutan in enhancing energy efficiency in the household sector by implementing star labeling programme developed by BEE. The MoU will enable exchange of Information, data, and technical experts related to the field. India will also provide technical training to energy auditors in Bhutan and will formulate building codes to suite the climatic condition of the Himalayan nation.

AMERICAS

$69 dudes – Ballot Initiative 2117 (I-2117) which received certification in January and has potential to scrap the state’s cap-and-invest programme, will be decided upon at the November elections as Washington legislators declined to take up the measure during the recently concluded legislative session. Supporters of Washington’s carbon market are significantly out-funding opponents in the campaign surrounding ballot I-2117, E&E News reported Wednesday. Proponents of maintaining the ETS have raised $2.5 mln, with $920,000 cash on hand as per the latest filings. In contrast, the Taxpayers Protection Alliance, a key opponent of the carbon market citing concerns over programme costs and past spikes in gasoline prices, reported having just $69 on hand in their latest financial report. Hedge fund executive Brian Heywood, who invested around $7 mln in the campaign to repeal the carbon market among other initiatives, represents a significant financial force on the opposition side. Despite this, the campaign to protect the carbon market currently appears to have a substantial financial advantage.

More money, less emissions – Bloomberg Philanthropies will spend $200 mln on 25 US cities to cut their emissions, in its Bloomberg American Sustainable Cities initiative launched Tuesday. Cities chosen include Akron, Ohio; Chattanooga, Tennessee; Savannah, Georgia; and Montgomery, Alabama, among others. The programme will give mayors access to both funding and expertise to utilise federal funding for emissions reductions.

Nowhere to hide – The US oil and gas industry could be emitting roughly three times the amount of methane compared to government estimates, according to a new study published in Nature on Wednesday. The researchers – from the Department of Energy Science and Engineering at Stanford, methane leak startup Kairos Aerospace, and nonprofit Carbon Mapper – integrated approximately 1 mln aerial site measurements to construct emissions distributions across six regions in the US. The quantified emissions represent a $1 bln annual loss in commercial gas value and a $9.3 bln annual social cost, the researchers concluded.

Brazil bill trends A survey conducted by Brazilian newspaper Folha de S. Paulo found 51% more bills on the energy transition in Congress in 2023 compared to the year prior, Jornal de Brasilia reported Wednesday. Around 30% of the 200 energy transition-related bills in 2023 focused on funding mechanisms, such as tax incentives for less polluting forms of production or emissions reductions targets. This is followed by transportation initiatives at just over 20%, and solar energy at 16%.

Indigenous safeguards – The Brazilian Ministry of Indigenous Peoples hosted a National Seminar on REDD+ and Indigenous Lands on Monday, where Minister Sonia Guajajara spoke to the issue of indigenous territories suffering from strong harassment at the hands of companies interested in commercialising carbon credits, the ministry reported Tuesday. The event was organised by the Secretariat of Environmental and Indigenous Territorial Management (SEGAT/MPI) which is responsible for assisting in construction of the Climate Plan and national REDD strategy under the Ministry of Environment and Climate Change (MMA).

Here we go again – Of the 36 companies in the Mexican state of Tamaulipas required to pay the carbon tax, at least 15 have filed injunctions, reported Portatil on Tuesday. Tania Contreras Lopez, legal advisor of the state government, noted that officials from the finance ministry, urban development and environment ministry, and economic industry have already participated in working tables with leaders of the companies. The state initially passed its carbon tax in July 2020, but had to suspend the programme in early 2023 to make revisions in wake of opposition from companies. It was approved by the Tamaulipas Congress in Dec. 2023.

SCIENCE & TECH

Unknown territory – The world has entered “unknown territory” after the critical 1.5C benchmark was breached in the past year, the head of the UN’s climate science body has said, the FT reports. The rise last year was much quicker than anticipated, and can only partly be explained by the start of the El Nino cycle pushing temperatures up a bit, he said at a FT conference in London. The 1.5C increase above pre-industrial levels over a 12-month period was breached for the first time last year. However, Jim Skea, who took over last July as chair of the Intergovernmental Panel on Climate Change, said that the one-year breach did not signal a failure to uphold the 1.5C threshold set out in the Paris accord, which refers to an average temperature increase over two decades.

VOLUNTARY

Helping hand – Gold Standard is consulting on a new mangroves methodology. The programme seeks to determine approaches to monitoring carbon removals from the restoration of mangrove ecosystems and includes plantation of mangroves in areas that historically supported the ecosystem. The methodology will be applicable globally. The monitoring requirements are based on the Gold Standard ‘Methodology for A/R Greenhouse gases (GHGs) Emission Reduction and Sequestration v2.0’, but include the option to combine in-situ measurements of aboveground tree biomass with the use of remote sensing. The consultation is open from now until April 5 and was developed by Forliance.

SAF matching – Air France will match the amount of each customer subscription to the “Environment-sustainable aviation fuels” option during the Paris 2024 Games, which will automatically apply to all bookings for travel between July 18 and Sep. 9, 2024 to destinations in mainland France, as well as French Polynesia, and shall apply from today. For example, a customer contribution of €50 will be matched by Air France, making a total of €100. The option to purchase SAF when purchasing an Air France flight has been available on the website or app since 2022, with all funds raised invested in the purchase of SAF. Air France aims to incorporate at least 10% of sustainable aviation fuels on all its flights worldwide by 2030, compared with 1% today.

AND FINALLY…

Let’s go fly a kite! – Wireless gas sensors that can monitor GHG emissions and which way the wind is blowing them will be built at the University of Surrey in Southern England thanks to a £620,000 grant, it was announced Wednesday. The sensors will be attached to helium kites and flown by an autonomous robot, enabling the monitoring of emissions in a variety of locations, including Thames Water treatment works, the University’s land at Blackwell Farm, Guildford, and rice paddies in Spain.  The funding stems from a £12 mln investment from UKRI’s Natural Environment Research Council, Innovate UK, and the UK Department for Environment, Food and Rural Affairs (DEFRA).

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