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TOP STORY
Major carbon credit standards denied full eligibility for CORSIA Phase 1
UN aviation body ICAO has decided to keep major voluntary carbon standards under ‘conditional’ approval for Phase 1 of CORSIA (2024-26), meaning their credits are not yet eligible for use by airlines during the current stage of the international offsetting scheme.
EMEA
UK opens public consultation on carbon border tariff design
The UK has opened a public consultation Thursday on proposals for the design and administration of its Carbon Border Adjustment Mechanism (CBAM), including on how carbon pricing will be integrated within the new mechanism.
INTERVIEW: UK could become CO2 import hub and export CCS capabilities globally
The UK can position itself at the forefront of the carbon capture and storage transition as it draws upon its significant offshore storage potential and develops the related supply chains and skillsets for global export, said a representative of a government-funded innovation programme.
CEZ buys up EU carbon permits for 2025 at €96/t
Czech utility CEZ has bought over 6 million EUAs for its 2025 compliance at an average €96 per tonne, according to its 2023 annual report published Thursday.
Euro Markets: EUAs drop to week’s low and trade in narrow range for second day as gas weakens
European carbon prices traded in a narrow range for a second day on Thursday, as prices fell back to their lowest levels of the week so far amid fading buying interest, while declining TTF natural gas prices also weighed on the EUA market.
AMERICAS
Iberdrola channels large share of €41 bln investment plan to US clean energy
Spanish energy firm Iberdrola will direct around one-third of a €41 billion investment plan to the US, as it looks to capitalise on subsidies for clean energy solutions.
WCI Markets: CCA, WCA prices rebound amid rulemaking updates from officials
Both California Carbon Allowance (CCA) and Washington Carbon Allowance (WCA) prices during the Mar. 14-20 period recovered from last week’s plunge, driven partly by additional information from regulators regarding the future of the schemes
ARB eyes LCFS proposal changes, will discuss stringency, crop-based biofuels at next workshop
Staff of California regulator ARB detailed next steps regarding its proposed Low Carbon Fuel Standard (LCFS) amendments and addressed programme scrutiny from industry and environmental groups.
Carbon market linkage may come at a price for Washington, analyst says
Washington’s linkage with the broader WCI market could hinder the state’s climate goals if it does not recalibrate its existing programme mechanisms, an analyst told conference participants Wednesday.
California fuel sales fall again in December, diesel declines as emissions fall on year
California gasoline sales and emissions trailed 2022 levels for the fourth month in a row in December, while diesel reversed course and also declined and total transportation emissions fell overall on the year, state data published Thursday showed.
Canada’s industrial carbon pricing scheme outshines fossil fuel tax when it comes to emissions cuts -study
Canada’s industrial emitter carbon pricing policy is three to four times more impactful in greenhouse gas abatement than the country’s carbon tax on fossil fuels, a new analysis has found.
ASIA PACIFIC
Australia’s new environmental plantings method will only require ‘minor changes’, govt says
The Australian government will only need to make ‘minor changes’ to the replacement environmental plantings method, and continues its work on the proposed integrated farm land management (IFLM) method, it confirmed Friday.
Vietnam looking to low-carbon rice carbon credits
Vietnam is planning a large-scale low carbon rice initiative that it says will help farmers earn carbon credits.
Major Chinese papermaker secures forest carbon project in Jiangxi
A major Chinese forestry and paper company has secured an emissions reduction project in a landlocked province through its carbon management arm, partnering with a government-backed investment firm.
Indonesia Business Council publishes wish-list for country’s carbon market
Encouraging the government to calculate GHG emissions limits and grant funding to industrial players are key priorities Indonesia’s peak business group wants to help nurture its carbon market, according to recommendations published this week.
INTERNATIONAL
UNFCCC, IEA agree to monitor and promote a 1.5C-aligned energy transition
The UN climate secretariat and International Energy Agency (IEA) are partnering to track and report on the global energy transition and help countries strengthen their Paris Agreement pledges, the two institutions announced on Thursday.
Political leaders tout high hopes for nuclear power on the road to net zero emissions
Growing enthusiasm for nuclear energy was put on display at the first-ever Nuclear Energy Summit in Brussels on Thursday, but a new generation of nuclear power plants will not be possible without access to large amounts of finance, leaders stressed, while also acknowledging the industry’s image problem.
Global cement emissions to double by the end of the century, research says
Cement emissions globally, barring from developed regions and China, will remain very high and might even double by the end of the century, a study conducted by a US-based research group revealed Thursday.
VOLUNTARY
Dutch civil rights group warns “wider investigation” findings will follow Kenyan REDD carbon project scandal
A Dutch civil rights campaigner group has placed the avoided deforestation voluntary carbon sector on red alert with a pledge to soon publish a ‘wider investigation’ on offsetting and human rights, which builds on its covert probe that uncovered sexual offences by senior staff at a Kenyan project.
TotalEnergies voluntary carbon credit portfolio reaches 11 mln, to quadruple by 2030
French energy major TotalEnergies has seen its voluntary carbon credit stock reach 11 million as of the end of last year, as it targets 44 mln by 2030 and over 70 mln by mid-century.
Carbon exchange CEO steps down
The CEO of one of the most high-profile exchanges in the global carbon market on Thursday announced he will step down, though will continue in the position until a replacement has been found.
Drax to pay €400/t in BECCS voluntary carbon removals deal
Drax has agreed to purchase 1,000 tonnes of bioenergy with carbon capture and storage (BECCS) removals credits from a Norwegian supplier for €400 per tonne.
New alliance launched to promote enhanced weathering technologies for carbon removals
The Enhanced Weathering Alliance (EWA) was officially established on Thursday, bringing together top-tier companies in an emerging technology field for carbon removals (CDR).
Forestry carbon projects supported by current science, other NBS uncertain -study
Forest conservation and reforestation have a solid scientific basis for voluntary carbon crediting, according to a peer-reviewed study published Thursday, though several other nature-based solutions (NBS) are less certain to effectively mitigate emissions.
Paris-based carbon accounting firm raises $52 mln in Series B
A French climate tech startup has raised has raised $52 mln in Series B funding as it seeks to grow a service to help small- and medium-sized businesses track their carbon emissions.
African cookstove carbon project developer attracts $18 mln in funding
A cookstove manufacturer and project developer has attracted $18 million from a carbon investor and a private equity group to fund the production and distribution of cookstoves across Africa that will generate voluntary credits.
Microsoft inks latest purchase of 95,000 voluntary CDR credits after string of deals
Microsoft has signed a pre-purchase agreement with a Swiss carbon project developer for 95,000 voluntary carbon removal (CDR) credits from a biochar facility in Mexico, following shortly after Shell struck a similar deal.
BIODIVERSITY (FREE TO READ)
Venture capital nature tech investments rise 18% in 2023 with biodiversity credits bets rising
Nature tech start-ups saw an 18% increase in venture capital (VC) investments in 2023 compared to the previous year, with significant growth in early-stage involvement, especially in the MRV and biodiversity credits category.
Sustainable support for farmers must go further, experts say
Sustainable finance support for farmers in England needs to expand further, beyond its welcome early structure, to address other areas of the food system, a panel of experts said Thursday.
Brazilian startup releases methodology to measure biodiversity uplift
A Brazilian environmental assets startup has released its methodology for measuring biodiversity impacts in farms and ranches, paving the way for issuing biodiversity credits.
Biodiversity Pulse: Thursday March 21, 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
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
Beef money – Global finance to the 55 biggest livestock companies increased by 15% over the years 2019-22 fueling its expansion and leading to a growth in CO2 emissions, a new report by environmental group Feedback has found. It found that the biggest creditors to the top 55 big livestock companies were Bank of America ($28.8 bln), Barclays ($28.2 bln) and JP Morgan Chase ($26.7 bln).The global livestock sector is responsible for around 16.5% of total human-caused emissions globally, and if the current trend continues it will be using up almost half of the world’s 1.5C emissions budget by 2030, according to the report. Livestock emissions are caused by enteric fermentation and land use change, as well as feed production, manure, and processing and transport.
Anticipated Article 6 agreement – Bangladeshi Minister of Environment, Forest, and Climate Change Saber Hossain Chowdhury said Thursday that an Article 6 MoU with South Korea should be signed within two months, reported The Daily Star. In addition to cooperation under Article 6, the countries would also discuss engagement with the private sector in environmental efforts, according to Chowdhury.
Help – The first major climate summit of the year in Helsingor, Denmark, saw a plea from Simon Stiell, UNFCCC executive director, for more funding to the climate body, as its budget is currently less than half funded, Climate Home News reported. In Bonn last June, countries agreed to a core budget of €74m ($80.4m), but a gap of €78m still remains.
EMEA
Power price stabilisation – The German economy ministry is looking to stabilise electricity prices with a new instrument designed to reign in rising grid fees, and is looking at the use of an amortisation account to spread out the costs for the use of a long-term grid asset over the expected use period. Various models are being examined, with the aim of finding a way to stabilise grid fees by next year. Electricity grid fees often account for more than a third of the total electricity price in Germany. (Clean Energy Wire)
Zambia pledge – The UK has pledged £6 mln to help train Zambian farmers in climate-smart agriculture and reducing deforestation, the government has announced. The funding will go towards training farmers in rotating and diversifying crops and more efficient irrigation, as part of measures to prevent clearance of forests for cultivated land and to improve food security. The initiative aims to train 100,000 smallholder farmers at 200 new ”farmer field schools” in order to curb poverty and improve resilience to climate change. The investment is part of the BioCarbon Fund Initiative for Sustainable Forest Landscapes, a global programme to support projects that reduce carbon emissions and promote sustainable land use and forest conservation. (the Independent)
‘Better Earth’ – Chris Skidmore, a former Conservative MP and lead author of the Net-Zero Review, has launched the Better Earth initiative to assist countries worldwide in delivering decarbonisation plans. The initiative will take the form of a private company and shall include professionals experienced in policymaking, energy infrastructure, and green finance, with a core focus to curb emissions by 2030, Skidmore said at a conference in London. Further details on Better Earth will be announced shortly, he said. (edie.net)
Carbon accountants – The Egyptian Prime Minister issued Decision No. 636 of 2024 Thursday, announcing the accounting treatment for carbon credits produced, financed, or traded in the incoming Egyptian VCM, per local media reports. The decision builds upon several recent developments to build a national VCM. These include amendments to the Capital Markets Law in 2022 to recognise carbon credits as a financial instrument; official recognition of three verification and certification bodies to operate in the Egyptian VCM, and pinning down the legal status of carbon credits in February; and laying out registration and delisting rules for companies seeking to sell carbon credits on the Egyptian Stock Exchange (EGX) in March. Local media report that the final step will be to finalise trading and settlement rules, which will be completed by EGX.
ASIA PACIFIC
Windfall – An offshore wind industry in New Zealand could contribute NZ$50 bln to GDP between now and 2050, Radio NZ reports. The report by PwC said the sector would create 10,000 jobs during the build-out phase, a further 2,000 ongoing positions in operations and maintenance, and additional opportunities to support industries. The report was prepared on behalf of several energy and infrastructure players including Bluefloat Energy, which has proposed a 900 MW offshore wind farm in the South Taranaki Bight. The study explored the economic, social, and environmental impacts of a national offshore wind energy industry, identifying both positive and negative outcomes. It noted that offshore wind could help meet the need for New Zealand to triple its renewable energy capacity to meet its net zero targets, and could enable a green hydrogen industry to develop.
Count me in – State-backed China National Petroleum (CNPC) would soon join a pledge by oil and gas companies to cut methane emissions to zero by 2030, according to Reuters, which cited remarks by COP28 President Sultan Al Jaber. A total of 52 international and national oil companies, including BP and ExxonMobil, have already joined the Oil and Gas Decarbonization Charter, representing 44% of oil production. CNPC has said it aims for a peak in its carbon emissions by around 2025, reaching near-zero emissions by mid-century.
New partnership(s) – THEMIX Green, a subsidiary of Japan’s SBI Sumishin Net Bank, has teamed up with offset developer Green Carbon to promote the creation of carbon credits from forestry and agricultural projects, it announced Thursday. Under the partnership, the two companies will focus on three types of projects – forest management, alternate wetting and drying (AWD), and biochar. In addition to the domestic J-Credit scheme, they will also expand their business by considering the usage of voluntary credits and the Joint Crediting Mechanism (JCM). At the same time, Tokyo-based Mitsubishi Research Institute has agreed to work with biochar startup Towing for a carbon farming pilot using high-performance biochar in Miyazaki Prefecture to improve soil quality and reduce GHG emissions. The results of the demonstration project are scheduled to be released around the end of November this year.
Big plans – India’s Rana Group, an engineering and construction conglomerate, is planning to invest $12 bln in Egypt for the production of green hydrogen. The group recently met Egyptian enterprises and expressed interest in entering partnerships in areas involving EV manufacturing, and provision of satellite services catering to sectors such as agriculture, mining, petroleum, and natural gas. The projects will aim to significantly contribute to the renewable energy landscape, aligning with global efforts towards sustainability and decarbonization. (ChemAnalyst)
Cost of inaction – The Comptroller and Auditor General (CAG) of India has said that the annual climate finance required by the country is estimated to cross $10 trillion by 2050 and the failure to meet those finance needs will intensify the socio-economic consequences related to climate-linked disasters, the Economic Times reported. The CAG who was addressing a conference on climate finance stressed the need for immediate action, emphasizing the stark difference between the costs associated with inaction and the potential advantages of making timely investments in low-carbon and climate-resilient pathways.
AMERICAS
To the court – The 8th US Circuit Court of Appeals, a conservative-dominated court in Missouri, was assigned to the legal battle facing the SEC’S climate disclosure rules, E&E News reported Thursday. The SEC on Mar. 6 finalised amendments to existing regulations to mandate climate risk disclosures in regulatory filings by thousands of public companies and in public offerings, including the estimated cost of destructive weather events and the reporting of Scope 1 and 2 emissions. On Mar. 16, oil services firms Liberty Energy and Nomad Proppant Services’ request for an immediate stay of the reporting requirements was issued, effectively preventing implementation until the court issues a final verdict.
SAF collab – ABB has partnered with Cap Clean Energy to collaborate on sustainable aviation fuel (SAF) production sites in the Canadian provinces of Manitoba, Saskatchewan and Alberta, the companies announced today. The two will explore how ABB’s integrated automation, electrical, and digital technologies can improve efficiency at biofuel facilities. SAF is expected to contribute about 65% of the emissions reduction needed by aviation to reach net zero in 2050. The facilities will produce the SAF from non-combustion conversion of cereal crop by-product feedstocks that do not compete with food, and the sites will also incorporate carbon capture and storage.
Patagonian proposal – The oil-rich Patagonian province of Chubut in Argentina is considering a Provincial Programme of Carbon Credits as a tool to reduce emissions and deliver on international climate change commitments. The Chubut Ministry of Science and Technology hosted the first expert meeting to explore the current state of carbon capture and storage (CCS) in the region on Mar. 14, as reported by local media Wednesday. The meeting addressed last November’s national regulation on carbon markets (ENUMeC), which has been retained by new right-wing President Milei’s administration. It reportedly aimed to promote understanding of carbon markets in order to create a carbon market based on CCS as well as energy efficiency improvements.
Carbon tax delay – San Luis Potosi will postpone the implementation of its state carbon tax until after elections are held in June, reported El Sol de San Luis. The tax had been slated to begin on Apr. 1, but the local outlet reported that General Secretariat Jose Guadalupe Torres Sanchez said it would be pushed back until an undisclosed later date. In the meantime, operational details will be worked out, and the state believes it can make adjustments to protect the law from legal challenges. Similarly, a CEO of Mexican consultancy and environmental platform told a conference Wednesday that he doesn’t expect the unveiling of regulations for a national ETS during the remainder of the current presidential administration.
Agricultural advice – The Brazilian Confederation of Agriculture and Livestock (CNA) delivered its proposal for a 2024 legislative agenda to federal representatives Wednesday, reported NovaCana. Regarding the national ETS legislation approved by the Chamber of Deputies in December, the agricultural association says it partially supports the bill, but would like to see the adapting and deepening of rules related to jurisdictional approaches. The bill awaits approval by the Senate, where it has been delayed on account of questions regarding the role of the voluntary carbon market in the compliance scheme.
VOLUNTARY
Biochar boom – Biochar could meet just under 50% of EU permanent tech removal goals by 2030, according to the European Biochar Industry’s newly released “European Biochar Market Report 2023-24”. The report extrapolates from 2023 using a growth rate of 50% until 2030, in line with a three-year compound annual growth rate (CAGR) of 54% from 2020-23. This growth path would bring biochar removals to 2.3 MtCO2 by 2030. The report predicts installed capacity of 115,000 tonnes biochar for 2024, up from 75,000 tonnes in 2023. Additionally, it notes that relative to bioenergy with carbon capture and storage (BECCS) alternatives, biochar removal is less efficient per tonne of biomass used, but does not require as much specialised infrastructure. In today’s energy system, it continues – particularly as energy becomes increasingly low carbon – biochar becomes increasingly attractive from a net carbon removal standpoint.
Verra update – Verra will permit the limited use of non-native monocultures in Afforestation, Reforestation, and Revegetation (ARR) and Wetlands Restoration and Conservation (WRC) projects in the VCS Program, as per a new version (v4.6) of the VCS Standard. Per the program’s ecosystem health safeguards, the use of non-native monocultures resulting in ecosystem conversion is only permitted in degraded ecosystems. The update will enable urgently needed benefits such as provision of pulp and paper and firewood resources for local communities, according to an update on the Verra website. The VCS Standard, v4.5, released in Aug. 2023, had excluded non-native monocultures from use in ARR and WRC project types with start dates of March 1, 2024, or later. The modification of this earlier update follows extensive stakeholder dialogue, expert analysis, scientific literature review, and a dedicated public consultation that ran from Oc. 24 – Nov. 26, 2023.
AND FINALLY…
Sorry state of the global climate – World Meteorological Organisation (WMO) has warned that 2024 will be another record-hot year, the Associated Press reported. In its report “State of the Global Climate” released Tuesday, WMO chief said that the organisation is sounding the red alert to the world which is very close to reaching the 1.5C lower limit of the Paris Agreement. The media outlet added that last year over 90% of ocean waters experienced heat wave conditions at least once and that the glaciers monitored since 1950 lost the most ice on record. Moreover, Antarctic Sea ice retreated to its lowest level ever. The UN agency warned that the world’s efforts to reverse the trend have been inadequate. A WMO official added that usually the year after an El Niño event tends to be warmer so it is still early to say that 2024 will be the hottest year on record, however, records are still being broken as January was the “hottest” January ever. Nevertheless, the organisation expressed some optimism and acknowledged that last year the renewable energy generation capacity from wind, solar, and hydropower rose nearly 50% from 2022.
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