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TOP STORY
LEAK: Global carbon price for shipping still on the table at IMO meeting
The UN’s international shipping body has drawn up a legal framework for decarbonisation measures that includes a carbon pricing mechanism, according to a draft text seen by Carbon Pulse on Thursday, despite fears by some delegates that this option could still be removed.
INTERNATIONAL
PREVIEW: France, US to push financing for new projects at world’s first nuclear energy summit
Brussels will play host on Thursday to the first ever nuclear energy summit, with France and the US pushing for new financing mechanisms to be deployed across the globe to help countries ditch coal and transition away from fossil fuels.
FEATURE: EU CBAM importers risk having to pay large penalties due to suppliers denying data access
EU importers of goods that fall under the bloc’s Carbon Border Adjustment Mechanism (CBAM) may face hefty penalties this year due to international suppliers refusing to provide them with data on their embedded emissions, which importers need to comply with the new mechanism, experts have told Carbon Pulse.
Asian steelmakers seek to weaken EU’s CBAM, lobbying study finds
Japanese and Korean steel industries appear to be actively lobbying the EU and other institutions to weaken the carbon border adjustment mechanism’s ambition, according to analysis by a think-tank.
Prioritise Article 6, global coal miner suggests in climate plan
One of the world’s largest coal miners would like to see Article 6 negotiations concluded so it can better trade carbon credits and decarbonise operations, it said Wednesday.
Countries to talk about climate pledges, finance ahead of COP29
The run-up to November’s COP29 climate summit kicks off this week, with around 40 climate ministers and leaders meeting in Denmark to talk about the two key issues on the table for Azerbaijan: strengthened climate pledges and more finance.
AMERICAS
California, Quebec agree to explore carbon market linkage with Washington state
WCI partners California and Quebec on Wednesday confirmed their interest in potentially extending their carbon market alliance to Washington, despite the voter-led ballot initiative that could upend the Evergreen State’s cap-and-invest scheme.
US EPA weakens emissions standards in final light- and medium-duty vehicle regulations
The US Environmental Protection Agency (EPA) on Wednesday announced its emissions standards for passenger cars, light-duty trucks, and medium-duty vehicles effective as of model year 2027, seeing weakened targets relative to its first proposal, but still anticipated to avoid 7.2 billion tonnes of CO2 through 2055.
BP, Microsoft among businesses launching campaign to save Washington cap-and-trade
Washington Governor Jay Inslee (D) on Wednesday assured carbon market participants of the stability of the state’s cap-and-trade system, citing “broad” support from the business community — including tech giant Microsoft and oil firm BP — and beyond, despite a November ballot initiative that looks to repeal the market.
Pennsylvania legislators announce bill for state cap-and-trade replacing RGGI
A pair of Democratic lawmakers in Pennsylvania announced legislation Wednesday for the establishment of a power sector cap-and-trade programme to replace the state’s participation in RGGI, although fierce Republican resistance in the divided legislature is expected.
California ARB working parallel on cap-and-trade, LCFS rulemaking, as Quebec tweaks offset scheme
California’s regulator told stakeholders Wednesday the agency’s ongoing work on the cap-and-trade rulemaking on a parallel track with its low carbon fuel standard (LCFS) programme regulation changes, while WCI partner Quebec said it is contemplating adjustments to its compliance offset scheme.
US market watchdog to soon finalise voluntary carbon credit trading guidelines
The US Commodity Futures Trading Commission (CFTC) is targetting this summer for a final version of its voluntary carbon guidelines, encouraging the public to report instances of fraud and manipulation as part of the agency’s efforts to support market credibility.
Resurfaced California carbon offset greenwashing bill passes state Senate committee
A Senate bill that aims to curtail environmental claims from the purchase and sale of carbon offsets, similar to a measure California Governor Gavin Newsom (D) vetoed last year, progressed through a state legislative committee on Wednesday.
National Mexican ETS regulations not expected during current presidency, expert says
An already delayed proposal for a national cap-and-trade system in Mexico will likely not see concrete regulations put forth until a new presidential administration takes over in October, an expert told conference attendees Wednesday.
EMEA
EU power association calls for anticipatory investments in grids
More investment is needed to ready Europe’s power infrastructure for net zero emissions by 2050, the power sector association said in a position paper on Thursday.
Lagging UKA demand to rise by 2030, prices to hit triple digits, say analysts
Oversupply in the UK ETS will be depleted by 2029 and allowance prices could reach as high as £136, according to analyst forecasts, speaking on a webinar Wednesday.
Transport to make ‘almost half’ of Europe’s emissions in 2030 -report
Transport alone is set to make up nearly half of Europe’s total greenhouse gas (GHG) emissions in 2030, according to fresh data published on Wednesday.
Scotland lacks credible plan to meet ambitious 2030 climate goal, warn govt advisors
Scotland’s flagship 2030 climate goal to reduce greenhouse gas emissions by 75% compared to 1990 is no longer credible, the independent Committee on Climate Change (CCC) warned on Wednesday.
Euro Markets: “Rangebound” EUA market eases lower after COT data shows funds trim shorts again
European carbon prices were little changed for a second day on Wednesday, ending the day down by 0.4% after moving in their narrowest range in more than a month amid a marked decrease in trading activity, as the weekly Commitment of Traders data showed a third successive decrease in investment funds’ net short position.
“No peace” for EU nature law as environment ministers meet next week
Further struggles await a law aiming to enshrine the target to restore at least 20% of the EU land and sea areas by 2030, with some of the bloc’s 27 environmental ministers announcing their intention to halt the process next week.
English estate partners with climate tech firm to improve reforestation rates
An English estate is partnering with a climate tech firm to use innovative technologies like vertical farming and micro-propagation of genetically relevant plant stock to improve the survival rate of voluntary carbon credit-generating reforestation projects.
ASIA PACIFIC
Environmental plantings ACCU method replacement to be prioritised over IFLM, expert says
Development of a new Australian environmental plantings methodology is likely to take priority over the Integrated Farming Land Management (IFLM) method, an expert told a conference Wednesday, all but confirming the development of the IFLM method will be pushed back.
Australian state legislates earlier net zero target, near-all renewable energy goal for 2035
Victoria’s plan to bring forward its net-zero target from 2050 to 2045 and have its grid operating on 95% renewable energy by 2035 passed the state parliament Tuesday.
NZ Market: NZU price recovers following partially-cleared auction
The NZU price has rallied following Wednesday’s rout in the wake of the partially cleared auction, as the government said it was progressing restrictions on the classes of land that can enter the ETS.
China could cut carbon emissions from steel by 11% with greener furnaces -report
China’s steel sector has the potential to cut carbon emissions by as much as 11% by 2025 if the government sets a more ambitious target for the adoption of electric arc furnaces (EAFs), a report has found.
VOLUNTARY
Price crash wipes $5 billion off the value of surplus voluntary carbon credits
The crash in prices since January 2022 has wiped $5 billion off the value of available credits in the voluntary carbon market, but the surplus today is still worth $4.7 bln, finds a new report.
INTERVIEW: Carbon rating firms creating unjustly-punished projects, advisory CEO says
While the growing number of project rating firms is an overall net positive for global voluntary markets, the head of an advisory firm and project developer warns their lack of resources and relative newness could lead to unfair negative sentiment toward poorly-rated projects.
FEATURE: Oslo incinerator plans to raise up to €50 mln from voluntary market to fund carbon capture facility
A waste-to-energy plant in the Norwegian capital is planning to sell an initial 50,000 removal credits on the voluntary carbon market by the summer in a bid to raise capital for the construction of a carbon capture and storage (CCS) facility.
Automakers can set 1.5C-aligned targets for cars on the road, with new SBTi guidance
Automakers can now align voluntary emissions reductions from their largest source of pollution — people driving their vehicles — with a pathway to limiting global warming to 1.5C, based on revised guidance released Wednesday by the Science Based Targets initiative (SBTi).
Permitting process, public communication should improve to advance CCS, CDR -panel
Faster permitting processes and more effective public communication are vital to scaling up and accelerating carbon capture and storage (CCS) and CO2 removal (CDR) technologies, conference attendees heard from an expert panel Wednesday.
Two Canadian developers sell voluntary carbon credits worth millions from NBS projects
Two Canadian project developers on Wednesday announced separate deals to sell voluntary carbon credits worth millions of dollars from nature-based initiatives.
South African exchange to start voluntary carbon credit trade within two months -Bloomberg
The Johannesburg Stock Exchange (JSE) will start trading voluntary carbon credits within a matter of months, its chief executive told Bloomberg.
AVIATION
Campaigners win lawsuit against airline’s carbon offsetting claims
A court in the Netherlands has ruled that climate claims, including use of voluntary carbon credits, made by a European air carrier constituted greenwashing, in a decision that could set a legal precedent for wider offset use in international aviation.
Global logistics firm partners with bank to scale sustainable aviation fuel
An international shipping firm has teamed up with a large bank to to co-invest in sustainable aviation fuel (SAF) and generate voluntary carbon credits.
BIODIVERSITY (FREE TO READ)
Seychelles to host first African on-land regenerative coral aquaculture facility
A Seychelles-based environmental non-profit is spearheading a project to build Africa’s first on-land regenerative coral aquaculture facility, paving the way for innovating coral reef conservation and restoration in the region.
UK Infrastructure Bank commits £50 mln to fund seeking to commercialise nature, climate research
The UK Infrastructure Bank (UKIB) has committed up to £50 million ($64 mln) to a first-of-its-kind venture capital fund seeking to create and scale businesses that harness nature and climate solutions developed by British research institutes.
Global biodiversity fund approves first grants
The Global Biodiversity Framework Fund (GBFF) has approved its first grants, agreeing to spend $40 million on four projects in Brazil, Gabon, and Mexico, administrator Global Environment Facility (GEF) announced Wednesday.
UK group flags seven solutions to stalled private demand for natural flood management
Seven solutions could unlock private demand for UK natural flood management projects, boosting the market for such initiatives should the government adopt them, a Green Finance Institute (GFI) expert group has said.
UK company launches biodiversity net gain project with cattle farming
A project for generating biodiversity net gain (BNG) units while farming organic cattle in south England has been announced by nature restoration company Restore.
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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
EMEA
EU enlargement – The EU’s planned enlargement to countries from the Western Balkans, Ukraine, and Moldova will require a broad review of the bloc’s policies, including the EU ETS, the European Commission said in a communication adopted on Wednesday. “A larger Union has the potential to positively contribute to addressing climate change and biodiversity loss,” the EU executive said in a statement, citing the “huge potential” of enlargement countries in terms of renewables and energy efficiency. At the same time, the EU will also need to confront new challenges, it added, saying those countries often “rely substantially on coal for electricity production and have a high greenhouse gas emission profile”. And while the inclusion of new countries in the EU ETS would help decarbonise their economies, “the impact of increase of both supply and demand of allowances on carbon price levels need to be assessed under the reviews,” it said.
Out of gas – The German government has kickstarted the planning for a gradual decommissioning of the country’s gas distribution network in order to organise a smooth transition to climate-neutral heating for consumers and operators, Clean Energy Wire reports. Grids for the existing natural gas supply will no longer be needed in their current form and scope once the country approaches its target of becoming climate neutral by 2045, the economy ministry said in a paper.
Nuclear fairytales – Climate, environment, and peace activists will stage a protest next to an inflatable fairytale castle in Brussels on Thursday, as political and industry leaders gather for the first-ever Nuclear Energy Summit, hosted by the Belgian prime minister and International Atomic Energy Agency. The summit is aimed at shoring up public finance towards a goal pledged at December’s COP28 to triple global nuclear capacity by 2050. The activists argue that the goal is “completely unrealistic”, requiring countries to connect 24-28 new reactors to the grid every year for the next 26 years, when they have only connected an average of five per year in the last three decades. Read Carbon Pulse’s preview of the summit here.
ASIA PACIFIC
Hydrogen partnership – Maharlika Carbon, which is vying to operate the Article 6 Registry for the Philippines, has teamed up with jeepney maker Francisco Motors and environmental solution provider NetZero Global to decarbonise the domestic transport sector, according to a statement released this week. The collaboration will enable the mobilisation of $5 bln for the development and deployment of hydrogen-powered transportation infrastructure in the Southeast Asian country, the statement said, without elaborating whether there will be any credit-generating project involved. Promoting a hydrogen economy could save the Philippines over $9 bln a year by replacing fossil fuels with hydrogen gas, the companies said.
We need guidance – South Korea’s environment ministry will prepare carbon emissions calculation guidelines by early next year to help companies improve their sustainability disclosures, according to news agency Yonhap. An institute under the ministry has signed an agreement with the Korea Accounting Institute to jointly develop guidelines for calculating GHG emissions required for sustainability disclosure and promote relevant education. The draft guidelines are scheduled to be released within the year, and finalisation is expected early next year.
Good enough investment – India-based battery energy storage systems (BESS) maker GoodEnough Energy will invest 4.5 bln rupees ($54 mln) for setting up a 20 GW per annum capacity plant in Jammu & Kashmir by 2026. Presently, the company is in the process of making its plant operational by October this year with initial BESS manufacturing capacity of 7 GW per annum. The factory will help various industries including automation, mining, hospitals, refineries, and shopping malls in reducing their carbon emissions leading to a reduction of over 5 MtCO2e in a year, while also creating job opportunities in the region. (Energetica India)
Electrifying – Australian gentailer AGL Energy has launched a platform allowing consumers to compare the impact of different electrification technologies on their budget, Renew Economy reports. The website offers advice on the size of the rooftop solar pv array that might suit based on electricity bill payments and estimate payback period of solar, battery, heat pump, EVs and induction stovetop cooking. It then estimates annual energy savings, bill savings, and carbon emissions savings from the selected technologies, giving consumers a rough estimate of what they would expect if they begin to electrify their homes. The market-wise rollout of the platform follows a pilot programme that tested the scheme on 6,500 AGL customers. Results from the pilot indicated that 62% of participants were interested in electrification to help reduce the cost of their energy bills.
AMERICAS
VOLUNTARY
Soil mapping – Verra is developing a module that uses digital soil mapping technology to quantify soil organic carbon (SOC) stocks, with the Module for Quantifying Organic Carbon Stocks Using Digital Soil Mapping: Calibration, Validation, and Uncertainty Estimation primarily intended for use with VM0042 Methodology for Improved Agricultural Land Management, v2.0 in the VCS Program. SOC quantification using digital soil mapping technology, makes use of soil sampling, remote sensing, and other environmental data sources to map SOC at high resolution and is critical to curbing the costs association with scaling up agricultural land management projects. It allows for broader spatial coverage, improved spatial resolution and precision, and increased cost-effectiveness, according to Verra. Perennial Climate will lead development of the module and will convene a multidisciplinary working group to support its scientific credibility, practical applications, and technological readiness for implementation in the VCS Program.
Making friends – Circular Carbon, a biochar producer, has teamed up with Cula Technologies, a startup focusing on MRV solutions for durable carbon removal. The collaboration aims to improve the standards for the quality and transparency of biochar carbon removal credits, they said on Wednesday. Circular Carbon utilises organic waste, such as cacao shells, transforming them into biochar and renewable energy. The biochar captures CO2, enriches soil microbiomes, and serves as an organic fertiliser, improving soil health, according to the firm. The German producer will now use Circular Carbon to manage its carbon removal tracking, such as overseeing biomass streams, tracking each batch, and monitoring biochar deliveries for final carbon sequestration verification. Circular Carbon has a centralised platform for managing biomass, biochar, credit inventories, MRV, and emissions data.
New CTO – Verra has appointed Joe Dell’Orfano as its first Chief Technology Officer (CTO). With over two decades of senior technology leadership experience, including significant roles at Total Wine and More, REI, Safeco Insurance, and Cava, Verra said Dell’Orfano brings a wealth of experience in driving customer-centric technology strategies. In his new role at Verra, Dell’Orfano aims to lead the standards body’s digital transformation, enhancing technological processes, transparency, and insights to support the Verified Carbon Standard programme and Verra’s overall goals. His appointment is seen as crucial for advancing Verra’s commitment to directing finance towards high-integrity climate projects through improved operational efficiency.
INVESTMENT
Network on fire – Dryad Networks, a firm offering early wildfire detection technology, has announced the successful initial closing of €5.6 mln in a convertible financing round, with a total round size of up to €10 mln. This financing serves as a prelude to its anticipated Series B funding round later this year, targeting €15-20 mln. The company hopes its wildfire detection network could lower buffer obligation in forest carbon projects, boosting credit sales, its CEO said in a recent interview with Carbon Pulse. The firm combines solar-powered infrastructure with AI-enabled gas sensors placed in forested areas. The system is designed to detect wildfires at their earliest stages, enabling rapid response and mitigation efforts.
SCIENCE & TECH
Too hot for comfort – Emissions from burning oil and gas produced by Shell, BP, TotalEnergies, ExxonMobil, and Chevron until 2050 could lead to an estimated 11.5 million additional premature deaths due to heat before the end of the century, according to new analysis by Global Witness. Extreme heat can kill anyone but children, the elderly, low-income communities, and outdoor workers are particularly vulnerable to heat strokes, heat attacks, or exhaustion. As many as 61,000 people died in searing heat across Europe in the summer of 2022, while deadly heat has also been observed in other places like China, South America, and the US in the past two years. The issue is also seen as a problem of climate justice because extreme heat has the worst impact on the world’s poorest. This is the first time that analysis tries to determine corporate responsibility for these excess heat deaths.
AND FINALLY…
Bottled it – Coca-Cola could soon replace some of the fossil fuel-derived CO2 in its carbonated drinks with captured atmospheric carbon, following the announcement of a pilot project with UK-based direct air capture (DAC) technology developer Airhive, Business Green reports. Airhive announced it has secured funding from Coca-Cola Europacific Partners (CCEP), which bottles the multinational’s drinks, AP Ventures, a US-based collaborative fund, and angel investors in support of its plans to launch one of the largest DAC pilots in the world. The project would see CCEP pilot Airhive’s 1,000 tonne DAC system at its sites. Airhive recently announced a similar pilot project with Deep Sky Labs in Quebec, Canada, where the carbon captured by the firm’s DAC system will be geologically stored. The company said it aims to capture 1,000 tonnes of CO2 per year through each of its pilot projects, before then looking to rapidly scale up its carbon removal capacity. The plans form part of the drinks giant’s ambitions to reduce absolute emissions across its value chain by 30% by 2030 and achieve net zero emissions by 2040.
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