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TOP STORY

ANALYSIS: Ageing UN carbon projects eye voluntary carbon market opportunities in light of Article 6 delays

Projects from the UN’s Kyoto Protocol-era Clean Development Mechanism (CDM) are transitioning to the voluntary carbon market (VCM) in light of stalling Article 6 negotiations, experts have told Carbon Pulse, though some caution that opportunities may only be short term, and units could be a tough sell for some buyers.

VOLUNTARY

VCM Report: Low price trade dominates voluntary carbon market as liquidity thins ahead of CCPs arrival

Over-the-counter trade seems to have slowed in the voluntary carbon market and retirement levels have fallen ahead of the much-anticipated announcement at the end of the month of the first methodologies that will qualify for the Core Carbon Principles (CCPs) stamp of high integrity.

FEATURE: Scientists enhancing the carbon appetite of crops explore voluntary market opportunity

Scientists developing gene-edited crops with deeper root systems that sequester more CO2 expect the first carbon credits to be generated in the next couple of years from farmers adopting their varieties.

UK-based startup receives fresh funding to develop three more direct air capture plants

A UK-based startup has received a fresh injection of cash to expand its carbon-sucking direct air capture (DAC) technology solution, the company announced on Monday.

Gold Standard releases ‘BVCM’ voluntary carbon guidance

Gold Standard has issued a guide to help firms with the development of ‘beyond value chain mitigation’ (BVCM) strategies that include voluntary carbon credit use.

Environmental commodities trader appoints new CEO

An environmental commodities trading firm has appointed a new CEO and a non-executive board member.

EMEA

EU adopts Green Deal diplomacy, with focus on climate and carbon pricing

The EU’s 27 foreign affairs ministers adopted ‘conclusions’ on the bloc’s Green Deal diplomacy on Monday, putting the emphasis on the “triple planetary crisis” of climate change, biodiversity loss and pollution, while calling on foreign countries to develop carbon pricing policies of their own.

EU ministers rubber-stamp energy and raw materials bills

The EU’s 27 foreign affairs ministers rubber-stamped two bills on Monday to protect energy markets from manipulation and ensure strategic autonomy to access critical raw materials.

EU must build business case for green tech to improve global competitiveness -report

The EU needs to create a business case for accelerating the rollout of green technologies including renewables, grids, electrification, and carbon capture, according to a report released Monday on how to enhance the bloc’s “crumbling” competitiveness.

CO2 emissions from Europe’s cars and vans decline thanks to targets, EVs

The average CO2 emissions from new cars and vans registered in Europe in 2022 fell by over a quarter compared to 2019, thanks to stricter targets and the uptake of electric vehicles, according to data published on Monday.

Carbon ETFs continue to cut EUA holdings as price decline tops 12 months

Exchange-traded funds (ETFs) that invest in the EU ETS futures market are reducing their holdings of EUAs for a third consecutive year in 2024, as investors continue to shun carbon amid a price decline that has now endured for more than 12 months.

Euro Markets: EUAs post third gain in a row as energy markets rally on supply cuts, colder weather

European carbon allowances started the week strongly, settling at their highest in more than five weeks as energy prices advanced on the back of interruptions in gas production, forecasts for cooler temperatures, and an unplanned outage at French nuclear unit.

AMERICAS

RGGI Markets: Record auction propels RGA prices to new highs

RGGI allowance (RGA) prices bolted to fresh all-time highs last week after the scheme’s Q1 auction results cleared at record levels, exhausting the year’s Cost Containment Reserve (CCR) allowances.

US Forest Service announces $145 mln for small landowner access to climate markets

The US Department of Agriculture’s (USDA) Forest Service announced Friday that it will provide $145 million to facilitate access to emerging climate markets for smaller and underserved forest landholders.

US DOE identifies adequate biomass potential to surpass domestic SAF target

The US will have a biomass production capacity of 1 billion tonnes in the future – enough to nearly double its 2050 sustainable aviation fuel (SAF) target, the Department of Energy (DOE) reported.

Illinois lawmakers propose framework for carbon sequestration

Two CO2 transport and storage bills are making their way through the Illinois legislature as state lawmakers seek to capitalise on CCS opportunities in light of regulatory issues that have recently blocked major projects in North and South Dakota.

ASIA PACIFIC

Malaysia set to include compliance carbon market in national carbon policy

The Malaysian government is conducting a study on its national carbon market policy which aims to support both compliance and voluntary carbon markets in the country, the natural resources and environment minister said Monday.

Australia Integrated Farm Land Management ACCU method likely to be delayed again -market sources

The Australian government is likely to delay the Integrated Farm Land Management (IFLM) method, according to market sources, with potential alternatives to be considered as several outstanding issues remain.

PREVIEW: NZU market activity surges ahead of ETS auction, strong chance it will clear, participants say

The NZU market has seen a ramp up in activity over the last week in anticipation of Wednesday’s ETS auction, as participants expect it to clear.

J-Credit holders asked to suspend trading while regulator sorts out registry data mix-ups

Holders of J-Credits from five projects registered under the scheme have been asked to not carry out any trades until faulty information in the scheme’s registry regarding their projects have been corrected.

Korean climate venture, tech startup to set up carbon exchange in Sri Lanka

A South Korean exchange has announced that it will soon launch a carbon credit trading platform in Sri Lanka as part of the activities of a recently founded climate finance venture.

BIODIVERSITY (FREE TO READ)

Australian state updates koala protection, housing plan

The New South Wales state government has committed A$100 million ($65 mln) to a conservation plan designed to protect koalas while at the same time deliver housing in southwestern Sydney.

Halting biodiversity loss ranked as top priority in 2024 by companies and public institutions, report says

More than 100 experts have agreed to identify biodiversity and ecosystem protection as the top priority for systemic change in a report published by French non-for-profit ChangeNow and realised in partnership with consultancy KPMG.

UK programme launches network to integrate biodiversity in the financial system

A UK research and innovation programme has allocated £3 million to launch a network aimed at hastening the integration of biodiversity into the financial system.

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Job listings this week

• *Account Director, Carbon Markets, Browning Environmental Communications – London
• *Feature Writer/Sub-Editor, Carbon Pulse – North America
• *Environmental Markets Correspondent, Carbon Pulse – Latin America
• Project Director, Imperative – South Africa
• Project Manager, Nature-Based Carbon Feasibility Study, Sayari Earth – KwaZulu-Natal Province, South Africa
• Market Analyst, Carbon, 3Degrees – San Francisco
• Ratings Scientist, Cookstoves, BeZero – Remote

*Premium listings

Or click here to see all listings

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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

Here to stay – Uncertainties surrounding the transition to clean fuels and “unexpected” demand for oil have strengthened the oil and gas industry’s opposition against calls to phase out fossil fuels, Reuters reported Monday. CEO of oil producer Saudi Aramco Amin Nasser said at an energy conference Monday that oil demand will reach a new record of 104 mln barrels per day this year, further calling on the audience to abandon the “fantasy” of phasing out oil and gas and instead make adequate investments in the sector. Other oil CEOs from Shell, Petrobras, and Woodside Energy expressed similar sentiments, pointing to regulations and transition timelines as being impractical and unrealistic. US Energy Secretary Jennifer Granholm pushed back at oil industry views on renewable fuels, adding that Nasser’s prediction of continuing long-term demand for fossil fuel goes against studies that suggest the opposite.

EMEA

CCS for Germany’s cement industry – Germany will have to build a 4,800-kilometre network of CO2 pipelines for an estimated cost of €14 bln in order to decarbonise its cement, lime, and waste incineration industries, according to a report by the country’s cement industry association (VDZ), reports Clean Energy Wire. “The development of a CO2 infrastructure in Germany is essential for these industries,” VDZ president Christian Knell said in a statement. Given the carbon emissions constraints imposed by the EU ETS, “companies need a CO2 pipeline network by 2035 at the latest,” Knell added, saying cement manufacturers currently lack the necessary legal framework and transport infrastructure to start investing in CCS. To reach climate neutrality, cement makers need CO2 transport capacity of 6.5 million tonnes in 2030, 13 Mt in 2035, and around 35 Mt in 2040, the report says, adding that additional transit volumes from neighbouring Austria, Switzerland, and France would amount to 15 to 20 Mt of CO2 per year.

UK heating decarbonisation mess – The National Audit Office (NAO), the UK’s independent public spending watchdog, has issued a damning report about the UK’s policy to decarbonise home heating. The report, published on March 18, examines progress made by the Department for Energy Security and Net Zero (DESNZ) in decarbonising home heating. However, some aspects of DESNZ’s “overall pathway remain unclear,” the report points out, citing in particular the role of hydrogen in home heating. “It has become increasingly clear since the 2021 Heat and Buildings Strategy that the government’s approach will centre on heat pumps as the main technology. But DESNZ’s progress with encouraging households to install heat pumps has been slower than planned because costs remain high and public awareness remains low,” the auditors say. The report also calls on DESNZ to “get to grips with other longer-term challenges, such as the future of the gas networks and plans for reaching harder-to-decarbonise homes,” calling for a mix of incentives, engagement, and regulations to address these shortcomings.

Ramping up CCS – Italian oil and gas producer Eni last week announced that it will establish two new business units – one focused on biochemicals and another on carbon capture and storage (CCS), Carbon Herald reported Friday. The two units join another pair that works on renewables and biofuels to make up a broader initiative for Eni to expand its decarbonisation portfolio and revenue. All of the units could be listed as separate entities on the stock exchange, the firm said.

Turow mine U-turn  – A Polish court has issued a ruling in favour of Czech plaintiffs by overturning the Environmental Impact Assessment (EIA) for the Turow mine, a controversial Polish open-cast mine near the Czech border, Euractiv reports. According to the Polish Administrative Court in Warsaw, the original EIA for the Turow coal mine downplayed the damage caused by mining activities on groundwater, causing pollution on the Czech side. The EIA had opened the door to a mining licence until 2044. “Water is still disappearing from Czech territory because of the Turow mine,” Greenpeace campaign coordinator Nikol Krejcova said in reaction to the Polish court decision. “The Czech-Polish agreement did not prevent this and did not solve anything,” she said referring to a Czech-Polish agreement, signed two years ago, to resolve the long-running dispute. Poland and Czechia reached agreement to end the dispute in Feb. 2022. However, Czech Prime Minister Petr Fiala said he would also look into the Polish court ruling and discuss the outcome with his Polish counterparts.

Power-ful connections – The UK is exploring the possibility of importing electricity from the US by way of a transatlantic power cable, with the ambitious plan aiming to install up to six power cables stretching about 3,500 miles across the Atlantic Ocean. The cables reaching depths of up to 11,000 feet could carry power equivalent to several nuclear power plants, and would form part of a larger trend for technological improvements in long-distance power cables. Another example is the Xlinks projects to lay four cables between the UK and renewable energy sources in Morocco. (energylivenews)

Bank disclosures – The Moroccan central bank is set to issue climate-related disclosure regulatory guidelines for banks in early 2025, the Responsible Investor reports. The rules are being modelled on ISSB’s disclosure framework, according to a spokesperson from Bank Al-Maghrib (BAM), though they declined to say if the rules would be mandatory or voluntary. Additionally, the central bank is considering broadening the scope of its regulatory engagement on Pillar II capital requirements, whereby BAM decides how much extra capital banks should set aside to cover potential losses in order to integrate climate factors. The move would place BAM among a small handful of central banks including the European Central Bank (ECB) that have promised to penalise poor management of climate risks by setting higher capital requirements.

Swiss carbon capture – Capsol Technologies has entered a preliminary license agreement for the use of its carbon capture solution at KVA Linth’s waste-to-energy plant in Switzerland. The plant will have a carbon capture potential of more than 120,000 tonnes of CO2 annually, of which half of the CO2 is biogenic, marking a significant scale up for carbon capture in the country, it was announced today. The agreement follows on from the feasibility study delivered in 2023 between the partners.

ASIA PACIFIC

Snapped up – The best sites for large-scale battery storage projects in Australia are likely to be bought up within the next three years, Renew Economy reports. Battery sites are commonly sold to developers at a premium of 1.5 times to double what the land is worth, according to renewable energy project land acquisition company Rok Solid. But the rising scarcity of spots isn’t causing a spike in land prices around substations because once the project is planned, the capacity available in the neighbouring infrastructure is also reduced, the company said. Batteries have proven themselves to be strong revenue generators and as a result, are extremely popular for developers. Australia is currently going through something of a battery boom, with investment standing at A$4.9 bln ($3.2 bln) in 2023, compared to A$1.9 bln in 2022, according to the Clean Energy Council.

Inception – A Mumbai-based climate tech startup has secured $100,000 in its pre-seed funding round, to promote the low-carbon economy. The climate startup aims to provide a trading platform for project developers, traders, businesses, and individuals to trade and retire carbon credits, Zee Business reported. The funding will be utilized for platform development and marketing initiatives, with a focus on enhancing user experience and increasing brand visibility.

AMERICAS

Methane mayhem – Some 24 states are challenging the US President Joe Biden administration’s new rule to limit methane emissions from the oil and gas sector, E&E News reported Monday. States including Oklahoma, Ohio, Alabama, Georgia, and Utah, last week filed a petition in the US Court of Appeals for the District of Columbia Circuit attempting to block the regulation contending that the US Environmental Protection Agency (EPA) overstepped its authority by establishing the rule, which they said is also arbitrary and not in accordance with law. Texas Attorney General Ken Paxton has also filed a similar lawsuit aiming to prevent an “expansion” of EPA’s authority.

LNG pause update – The US Department of Energy’s (DOE) ongoing halt on LNG exports will be lifted within a year, Energy Secretary Jennifer Granholm told E&E News in an interview Monday. The Biden administration in January paused pending and future approvals of LNG exports to evaluate impacts on energy costs, energy security, and the environment – a move swiftly challenged by opponents, including Republicans and oil and gas producers. The Republican-controlled US House of Representatives last month also passed a bill to resume approvals by granting the Federal Energy Regulatory Commission (FERC) the sole discretion to approve export facilities, effectively excluding the DOE from the process, and the bill is now awaiting a Senate vote.

Ruled out – The US EPA on Friday denied a petition by fossil fuel lobby American Petrochemical & Fuel Manufacturers (APFM) that sought a partial waiver of the 2023 cellulosic biofuel renewable volume obligation (RVO) under the Renewable Fuel Standard (RFS). APFM requested the waiver in December on behalf of its US refining members in order to address shortcomings in cellulosic biofuel production under the RFS, adding that the shortfall would harm US refineries and consumers and create additional volatility in the D3 RINs market. The group also claimed that RIN data released since the filing of its original petition demonstrated a 2023 cellulosic biofuel production shortfall and deficit carryover of more than 122.9 mln ethanol-equivalent gallons, but the agency responded that it was unable to verify APF’s calculations. EPA’s decision received support from the Coalition for Renewable Natural Gas, who agreed that AFPMs’ request to reduce cellulosic biofuel volumes was invalid. (Biodiesel Magazine)

Bluegrass State bill – Lawmakers in Kentucky’s House of Representatives are considering a bill that would make it more difficult to close aging coal-fired power plants in the state. Senate Bill (SB) 349 would create a new energy planning and inventory commission that would be responsible for reviewing any plans to retire such plants. According to Public News Service, the state has several aging coal-fired plants that are due to close in the coming years. Furthermore, proponents of the plan say it is intended to protect energy reliability, while opponents say it is designed to turn the state’s energy planning process in favour of the coal industry.

Funding conservation – A Republican-sponsored bill to establish a foundation to leverage funding for projects that manage protected and conserved areas around the world awaits a vote from the House Foreign Affairs Committee this week, E&E News reported Monday. Sponsored by the committee chair Michael McCaul (R), House Bill 6727 (HB 6727) would authorise $1 mln, and allocate an additional $100,000 annually through 2035, to support long-term management of protected and conserved areas across the world. The legislation has received bipartisan support with co-sponsors including Ohio Representative David Joyce (R) and Delaware Senator Chris Coons (D).

Geoengineering halt – Harvard researchers have paused their effort to conduct a small geoengineering experiment in the stratosphere in light of repeated delays and criticisms from the public, the project’s principal investigator announced Monday. The experiment planned to launch a high-altitude balloon – equipped with propellers and sensors, that could release a few kilograms of calcium carbonate, sulfuric acid or other materials high above the planet – that would then turn around and fly through the plume to measure several variables, including how widely the particles disperse and the amount of sunlight they reflect and other variables. The aircraft will now instead be repurposed for stratospheric research unrelated to solar geoengineering. Proponents of solar geoengineering research reason that the technique may significantly reduce the dangers of climate change. However, critics contend that even studying the possibility of solar geoengineering eases the societal pressure to cut GHG emissions. They also fear such research could create a slippery slope that increases the odds that nations or rogue actors will one day deploy it, despite the possibility of dangerous side-effects, including decreasing precipitation and agricultural output in some parts of the world. (MIT Technology Review)

Too taxing – Ontario Liberal Leader Bonnie Crombie will not introduce a carbon tax in case her party forms government after the 2026 election, responding to criticism from Premier Doug Ford who has called her the “queen of carbon tax”, Global News reported Monday. But Crombie did not explicitly rule out the return of a province-wide cap-and-trade programme, which was repealed following the election of a Progressives Conservatives majority government led by Ford.

VOLUNTARY

Carbon removal partnership – Customers of transport and logistics services provider Blue Water Shipping can now invest in carbon removals via the company’s new partnership with Klimate. Blue Water acknowledges the mismatch between the need to decarbonise the transport and logistics industry and the sustainable offerings currently available, and hopes that offering carbon removals to its clients will help companies to meet their climate targets.

REDD partnership – US carbon offset developer BluEarth Carbon Development (BluEarth) announced a partnership with Ecological Carbon Offset Partners (EP Carbon) to advance BluEarth’s REDD projects in Liberia. The partnership will identify project opportunities and fundraise to support project implementation.

Carbon christening – Arkansas-based forest carbon developer NativState announced Monday that it has sold its first batch of forest carbon credits. According to the firm, the credits stem from a project in southern Arkansas that it estimates will generate 1.5 mln credits over the next 20 years, all of which are expected to be verified to comply with ACR’s Improved Forest Management (IFM) Methodology 2.0. Although a specific number of credits or buyer were not identified for the first transaction, NativState also said it has 10 additional projects registered with ACR for verification.

Canadian methane partnership – Saskatchewan-based carbon credit firm Carbon RX has signed an MoU with Calgary-headquartered energy company PureJet and Regina-based EmissionTech RX to reduce methane emissions and subsequently create a pipeline of carbon credits. Under the MoU, EmissionTech will acquire PureJet’s proprietary methane destruction technology, which will be applied to treat waste gas created by oil and gas extraction. Carbon RX will then oversee the streaming of credits generated by the application of the technology, although no specific number of credits was disclosed.

INVESTMENT

Climate risk – A new type of securitisation allowing banks to cut the carbon footprint of their balance sheets is being proposed by an alternative investment manager, Bloomberg reports. Newmarket, a Philadelphia-based alternative asset manager is pitching a mechanism for banks to repackage and transfer their so-called financed emissions, which represent the GHG pollution linked to their lending and investment activities. With the concept to both transfer the credit risk and at the same time, transfer the so-called emissions risk to a third-party investor outside the banking system, such as Newmarket. It’s an example of a structured product being developed by the wizards of high finance to tackle climate risk.

AND FINALLY…

Insurer’s retreat – California residents may be compelled to pay some $2 bln to bail out the state’s insurer in case the state experiences a major wildfire, the insurer’s president admitted last week in the face of rising climate disasters that have scared property insurers off regions that are increasingly susceptible to hurricanes and wildfires. The California FAIR Plan has been overwhelmed by a sharp uptick of new policyholders, and would need to impose charges on millions of insurance policies of varying types throughout the state in case of a major wildfire. Such events could force the California Plan to impose a surcharge of nearly $1,000 on policies throughout the state, while a series of major wildfires could cost policyholders $3,700. The size of the Golden State, coupled with the number of properties located in wildfire-prone areas, may even make assessment the costliest in US history. (E&E News)

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