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TOP STORY
International tribunal dismisses Koch lawsuit over $30 mln loss from cancelled Ontario carbon market
An international tribunal has dismissed Koch Industries’ lawsuit challenging the 2018 cancellation of Ontario’s cap-and-trade programme, according to media reports, absolving Canada of the US$30 million loss claimed by the company.
VOLUNTARY
Shell cuts carbon target but likely to boost voluntary credit buying
Shell has watered down its net carbon intensity targets after warning the pace of the green revolution is wavering, but the oil and gas major is still likely to boost its voluntary credit buying.
US DOE calls on private sector to purchase carbon removal credits, Google steps up with $35-mln pledge match
The US Department of Energy (DOE) announced its intent Thursday to foster further private spending on CO2 removal (CDR) credits by connecting suppliers and buyers, with Google promptly answering the government’s call with its own $35-million pledge.
Researchers develop method to measure carbon stored in bogs, may support wider peatland restoration efforts
A group of researchers in Singapore have developed a methodology to measure carbon stored in bogs using satellite data, which may serve as a foundation for successful restoration of damaged peatlands, they said Thursday.
Carbon insurer, biochar producer insure biochar credits against invalidation
A carbon insurance company offering credits “pre-wrapped” with insurance through several partnerships has teamed up with a biochar producer to offer the world’s first invalidation-insured biochar credits.
AMERICAS
WCI Markets: CCAs rebound from Wednesday price rout, WCAs converge toward Q1 auction low
California Carbon Allowance (CCAs) prices start to recover from an unprecedented wave of selling mid-week ahead of options expiring Friday, while Washington Carbon Allowances (WCAs) lurched another leg lower after the first auction for 2024 settled near the floor price.
US SEC climate disclosure rule deluged with lawsuits from industry and climate groups
The US Securities and Exchange Commission is already facing legal challenges from all sides less than a week after approving the highly anticipated climate disclosure rules, alleging that the regulations are both inadequate and excessively restrictive.
INTERNATIONAL
INTERVIEW: Carbon royalties for state, market exposure for communities would help Article 6 succeed -developer
Allowing governments access to a portion of the credits from carbon projects they host, and giving communities greater exposure to markets, would help Article 6 to get off the ground, according to a project developer.
Global retail investors broadly support investments that tackle climate change -survey
Retail investors want funds and pension plans to take an active role in addressing climate change, according to a survey of 5,000 stakeholders conducted by a climate think tank and a strategy consultancy firm.
US DOE eyes Q2 2025 completion of natural gas supply chain emissions reporting framework
The US Department of Energy (DOE) detailed its timeline for the development of a globally-recognised Measurement, Monitoring, Reporting, and Verification (MMRV) framework for the natural gas supply chain at a webinar Thursday.
SHIPPING
PREVIEW: China pushes to exclude carbon levy from efforts to reduce shipping emissions
A proposal by China that snubs a carbon pricing mechanism to reduce emissions from the shipping sector in favour of a marine fuel standard is emerging as one of the frontrunner options to be discussed at a key UN meeting next week.
ASIA PACIFIC
NZ Market: NZU price slumps as market digests CCC recommendations
The NZU price has slumped to a near six-month low as the market wraps its head around the Climate Change Commission’s (CCC) latest ETS recommendations, while sentiment remains poor.
Japanese insurer launches carbon insurance product to reduce supplier-side risk
One of Japan’s largest non-life insurance companies has launched a special product that aims to support the creation of domestically issued carbon credits.
Build it and they will sequester: Australian expert calls for govt CO2 pipeline help to aid CCS
If Australia is serious about cutting emissions and supporting carbon capture and storage (CCS), the government should do more than improve legislation and back industry via an infrastructure build, a Perth energy conference heard this week.
Korean trading firm to expand its carbon credit business -media
A major trading firm in South Korea has decided to deepen its engagement in the voluntary market, with plans to sell carbon credits it earned from a hydropower plant in Indonesia, local media reported Thursday.
FEATURE: India puts trust in “watershed” agricultural carbon trading push, but risks loom large
India is betting on a newly introduced carbon trading framework in the agriculture sector to help it cut large amounts of greenhouse gas emissions, but its track record has been questioned and the structure of the nation’s farming sector means those who might need carbon credit revenue the most could miss out.
EMEA
RWE reports heavy emissions drop in 2023, CEO points to REPowerEU sales as creating “downward spiral” in carbon market
RWE saw emissions from electricity production fall by a large margin last year, due to a slump in ETS-covered coal and gas burn brought on by weak power demand, it said in annual results on Thursday, as the company’s CEO also pointed out that additional EUA sales introduced by Brussels were now creating a “downward spiral” for prices in the bloc’s carbon market.
Heating and cooling decarbonisation key to EU’s post-2030 emission cuts, groups say
The European Commission’s climate policies from 2030 need to prioritise the phaseout of fossil fuels and reduction of emissions in the heating and cooling sector, a coalition of industry associations and NGOs said on Thursday.
Agri SMEs in five EU nations get millions of euros to decarbonise
Small and medium-sized agricultural businesses in five European countries will receive new funds from HeavyFinance, a Lithuania-based financial technology company, to remove 0.376 tonnes of CO2 equivalent per year for every €1,000 invested.
EU bank to invest millions in climate resilience of Rwanda’s farming sector
The international arm of the European Investment Bank, EIB Global, will help farmers in Rwanda face climate change under a financing agreement announced on Thursday as part of the EU Global Gateway initiative.
Euro Markets: EUAs rise to week’s high amid aggressive afternoon buying after flat morning
European carbon prices rose to their highest level this week on a sustained period of buying that saw the market post the whole day’s gain in the afternoon, after stalling earlier amid a wider decline in volatility.
BIODIVERSITY (FREE TO READ)
Australia’s GreenCollar Group issues over 50,000 NaturePlus credits to its own project
Project developer GreenCollar Group, which last year launched its own biodiversity credit scheme, has issued over 50,000 NaturePlus units to one of its own restoration projects, the second batch of units generated under the framework.
Groups team up to form Swedish biodiversity credit market
A group of companies and organisations with ties to the forestry sector have teamed up to lay the foundations for a Swedish market for voluntary biodiversity credits.
Switzerland’s biggest asset managers support business activities harmful to nature, Greenpeace says
Some of the largest asset managers operating in Switzerland including BlackRock have failed to take action in resolutions at companies on biodiversity loss and climate issues, a Greenpeace Switzerland report has said.
Unilever, NatureMetrics partner to monitor biodiversity in regenerative agriculture projects
Global conglomerate Unilever has partnered with UK nature intelligence firm NatureMetrics to harness environmental DNA (eDNA) technologies in a bid to drive regenerative farming practices across its supply chain.
English directors could be personally liable for failing to consider nature risks, lawyers say
English and Welsh company board directors could be personally liable for breaching their duties by failing to consider relevant nature-related risks, leading to employment termination with financial consequences, lawyers said on Wednesday.
Biodiversity Pulse: Thursday March 14, 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
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
NDCs 3.0 – The UNFCCC executive secretary, Simon Stiell, sent out a letter to parties of the UN climate treaty on March 14 to remind them about the “fundamental importance” of submitting their updated the “new third-generation national climate plans, or Nationally Determined Contributions 3.0”, which are due early in 2025, and include updated climate targets for 2030. “Crucially, your NDCs 3.0 and 2030 targets will collectively determine whether the world can get back on a global emissions trajectory in line with limiting global temperature rise to 1.5C this century,” the letter says. As part of this, Stiell urged all parties to accelerate efforts to produce ambitious, economy-wide emission reduction targets, covering all greenhouse gases, sectors, and categories. “I urge all Parties to harness the momentum generated at COP28 in Dubai, particularly the decision on the global stocktake (GST),” Stiell continued, saying the next step is “to operationalise the outcomes of the GST” and “deliver quantum leaps in the quality and quantity of climate finance”.
EMEA
Von der Leyen in Greenland – European Commission President Ursula von der Leyen headed out Thursday for a two-day trip to Greenland and the Faroe Islands, as melting Arctic ice, demand for green technology raw materials, and competition from China increase the territory’s strategic importance, The Guardian reported. The autonomous Danish territory, which is not in the EU, is of strong interest to Brussels because of its wealth of raw materials — it is believed to hold 25 of the 34 materials in high demand for low-carbon technologies. Von der Leyen, who championed the European Green Deal, is seeking a second term as Commission president, with her desired focus to drive a new industrial era for the EU.
Finding funding – Turkey’s cement sector will need investments worth at least $30 bln to meet its target of reaching net zero emissions by 2053, the Turkish Cement Manufacturers’ Association has said. The industry will need a further investment of $2 bln to ensure compliance with the EU’s CBAM, and it has been difficult for the association to find that financing, the body added. The association is beginning to establish waste heat recovery facilities which reduce the loss of energy, however, in order to remain profitable and ensure energy efficiency in complying with CBAM, it would require more funding, it has said.
Putting a lid on it – The head of Europe’s largest energy network operator E.ON has suggested that Germany could moderate its expansion of renewable energy in order to keep system costs in check and allow for a commensurate growth of transmission and storage capacity. E.ON CEO Leonhard Birnbaum told an annual shareholder conference that it would make sense “to synchronise the expansion of renewables with grid expansion and to make it contingent on that”. He also warned of the expense of the energy transition and how this could undermine support for the process. The government should also focus on affordability, functionality, and resilience when approaching the energy transition, in addition to decarbonisation, he said. E.ON is planning to spend €42 bln euros on projects like grid expansion, more than twice the amount estimated three years ago. (Clean Energy Wire)
Forest impacts – UPM has donated €400,000 to the University of Helsinki to study the overall climate impact of commercial forests, with the Carbon Sinks+ research aiming to understand how commercial forests affect climate change in ways other than as carbon sinks and stores. For example, they may also impact the formation of aerosol particles and clouds, rainfall, and the reflection of sunlight back into space, all of which inadvertently may affect climate change. The study will measure more than a thousand different variables, and the main measurement site will be the Hyytiala forest station at the University of Helsinki, where measurements have been taken for decades. UPM offers renewable alternatives for fossil-based materials and so the research is intended to complement its own operations.
Shifting winds – A successful transition from the UN’s Clean Development Mechanism (CDM) to the voluntary carbon market has taken place for an Egyptian wind energy project, which is now listed on the Gold Standard registry. The Ras Ghareb Wind Energy SAE project is led by a joint venture comprising Angie, Toyota-Tsusho-Eurus Energy, and Orascom Construction, and assisted by carbon services provider Ecosecurities. The project has an installed capacity of 262.5 MW and has been supplying clean electricity to 500,000 Egyptian households since Dec. 2019. From Dec. 2020 – Jul. 2022, the project issued 1.1 min carbon credits, known as ‘certified emission reductions’ (CERs) within the CDM framework.
HSBC-you soon? – HSBC is in discussions with investment funds to help finance the construction of the UK’s Sizewell C nuclear plant, according to Bloomberg. The bank hopes to secure cheaper capital and displace some of the risk Sizewell would otherwise assume in financing a long-term project. Discussions have been kept largely confidential, with the UK Dept. of Energy Security and Net Zero describing them as “sensitive”. The project is anticipated to cost more than $51 bln, making potential state-guaranteed funding pivotal. The UK government is working with Barclays to find equity investors for the Sizewell project and has increased its own financial exposure, becoming the project’s majority shareholder earlier this year. The UK government has vowed to get as much as 25% of the country’s power from nuclear plants in coming years, but ageing reactors will need to be replaced by 2030.
ASIA PACIFIC
Cracking on – The Victorian state government is accelerating the planning approval process for renewable energy projects in the state, it announced Thursday. Renewable energy projects will be eligible for the accelerated planning pathway under the Development Facilitation Program, treating these projects the same as other significant works. The government estimates there is around A$90 bln worth of investment value in renewable energy projects in the development pipeline. Under the change, all new renewable projects will be treated as significant economic development, making them eligible for an accelerated pathway, and removing the planning panel process and third-party appeals at the Victorian Civil and Administrative Tribunal. Projects stuck in approvals will also be able to access the accelerated pathway, it said. It reassured that third-party objections will still have a place in the approvals process. Victoria is in the process of legislating a renewable energy target of 95% by 2035.
New marketplace – Korean environmental startup e-ETS Co has launched a real-time carbon exchange to increase the accessibility of the voluntary market, according to a company statement recently released. The new marketplace, called Tantan, provides trading services to both individuals and corporations as the company aims to create an environment where all users can easily and transparently trade carbon credits. The startup also plans to strengthen cooperation with global certification agencies to ensure the reliability of such credits, the statement said.
AMERICAS
Baby blue – The Bahamas hopes to monetise blue carbon credits by the end of 2025, according to Attorney General Ryan Pinder, as reported by Eyewitness News. Scientific research and reporting has taken place for several blocks included in phase one of an initial study. In addition, the Caribbean island government has engaged a verification company to validate the in-house science. The Bahamas aims to conclude scientific procedures in 2024, followed by verification, after which carbon credits can be priced. Carbon Management, a Bahamas-based company, has been tasked with raising the $50-60 mln required to map all the country’s blue carbon assets. It is estimated that these could bring in billions through carbon crediting. Pinder stated that the integrity of Bahamian blue carbon credits is expected to generate a higher-than-market average price.
Welcome New Mexico – Governor of New Mexico Michelle Lujan Grisham (D) signed into law HB41, which would see the implementation of a clean fuel standard in the state. Introduced by Democrat Representatives Kristina Ortez and Christine Chandler, the Clean Transportation Fuel Standard would require transportation fuel producers and suppliers to achieve a 30% decline in carbon intensity relative to 2018 levels by 2040. New Mexico joins Washington, Oregon, and California in the enactment of programmes to decrease the carbon intensity of transportation fuels through a market-based crediting mechanism.
Not free – Colorado’s SB 159, which would see the state begin to phase out new oil and gas permits as of Jan. 1, 2028, is expected to decrease revenues by an estimated $305 mln annually by 2034-35, and larger amounts in later years as production declines, according to a fiscal note attached to the bill. It would also increase costs by up to $476 mln by 2034-35. It was initially scheduled to be considered by the Senate Agriculture and Natural Resources Committee on Mar. 14, but was removed from the agenda.
VOLUNTARY
Biochar removals – Carbonx Climate, a carbon removal procurement and management platform, has facilitated the purchase of 3,000 tonnes of carbon removals on behalf of Boston Consulting Group (BCG) with the credits coming from Bolivia-based biochar project developer Exomad Green. Exomad Green transforms sustainable forestry residues into biochar, distributing the product to indigenous farming communities and medium-sized agricultural operations across the Bolivian lowlands, with the aim of rejuvenating degraded soils.
Buffer insurance – Carbon insurer Kita is offering buffer insurance on projects certified by UK-based carbon standard Oxcarbon. Buffer as a Service offers active risk control, asset management best practices, and calibrated project-specific risk assessments for buffer contributions, based on insurance underwriting criteria. The buffer is a central pool of carbon credits to which each project developer is required to individually contribute, and these credits are not allowed to be sold. Buffers are intended to ensure the integrity of the carbon scheme, regarding permanence and performance. However, risk per carbon project is variable, which can cause challenges when assessing the level of contribution required per project developer. “The risk management expertise of Kita, driven by technical insurance underwriting and backed by an experienced fund management team, combined with the transparent and scientific best practice approach developed by OxCarbon, will reduce risk and increase integrity in the management of the OxCarbon buffer, while benefiting high-quality carbon projects,” said Dr Paul Young, chief technical officer and co-founder of Kita.
Stepping in – Non-profit think tank Resources for the Future (RFF) on Wednesday announced William Pizer as the next president and CEO of RFF. Prior to joining the organisation, Pizer served as a senior associate dean for faculty and research at the Sanford School of Public Policy. He was also the deputy assistant secretary for environment and energy at the US Department of the Treasury, where he oversaw the Treasury’s role in the domestic and international environment and energy agenda of the US. Pizer, who currently serves as the vice president for research and policy Engagement at RFF, will start in his new role on May 1 to become the institution’s eighth president and CEO, following Richard Newell’s prior announcement that he would step down this year.
SHIPPING
Shipping alignment – Carbon trader Vertis Environmental Finance and Azolla, the decarbonisation vertical of Synergy Marine Group, are working together to help shipowners align with the EU ETS and upcoming global decarbonisation regulations, they announced today. The two will combine their capabilities in carbon trading and emission analytics via CASPER (Carbon Accounting Software for Periodic Emission Reporting) to ‘provide integrated, high-quality, cost-efficient and tailored maritime decarbonisation services and expertise worldwide’. (bunkerspot.com)
SCIENCE & TECH
NDC 3.0 – UNFCCC Executive Secretary Simon Stiell has said on X that the “new generation of national climate plans (NDC3.0) in early 2025 must show more ambition than ever”, urging countries to think long term, as “targets for 2030 and beyond will determine the benefits of climate action for people, jobs and economies”.
AND FINALLY…
Ski ya later – One in eight ski areas will lose all natural snow cover this century under high emissions scenarios and one in five will experience a reduction of more than 50% relative to historic baselines, according to research published in peer-reviewed journal PLOS ONE on Wednesday. The average annual snow cover days were predicted to decline the most in the Australian Alps (78%), followed by the Southern Alps (51%) and the Japanese Alps (50%) by 2071-2100. The researchers, from the University of Bayreuth and University of Zurich, also found that future skiable areas will concentrate in less populated areas and instead take place in more continental regions and inner parts of mountain ranges.
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