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TOP STORY
Double claiming risk at centre of CORSIA approval block on voluntary carbon standards
ICAO has requested that voluntary carbon standards account for the supply risk in the event of the double claiming of credits under CORSIA, as a condition for approving programmes in the current 2024-26 phase of the international aviation offsetting scheme, after no new issuing bodies were given the green light at a key meeting last week.
EMEA
FEATURE: EU ‘pretty open’ to carbon removal incentives, including from ETS
The European Commission is looking at regulatory and financial incentives to support carbon removal technologies, a senior EU official has confirmed, insisting though that removals should be used as “a complement, not a substitute” to emission reductions.
EU gives final green light to gas saving measures until April 2025
The Council of EU member states gave the final go ahead Monday to measures aiming to reduce gas demand by at least 15% compared to 2017-2022.
Euro Markets: EUAs jump to two-month high amid short-covering triggered by gas surge
European carbon allowances jumped sharply on Monday after prices began the day in close alignment with strong gains in natural gas, leading the front-December EUA contract to reach its highest in two months and breach long-standing technical resistance levels.
EU nations praise ETS as tool to reach 2040 climate goals
Expanding the EU ETS to new sectors of the economy will help the European Union reach its climate targets for 2040, according to some of the 27 national ministers who exchanged views at a meeting of the EU Council in Brussels on Monday.
UK govt argues North Sea oil and gas increase is key to net zero transition
The UK government’s controversial proposal to expand offshore oil and gas developments is necessary to transition the country to net zero emission, lessen reliance on imports, and scale up its clean technologies industry, Energy Security and Net Zero Minister Graham Stuart said on Monday.
EBRD initiative launched in Turkiye targets decarbonisation of CBAM-covered sectors
Around $70 billion annually is needed to decarbonise Turkiye’s steel, cement, aluminium, and fertiliser sectors, according to a low-carbon pathway (LCP) initiative launched in the country by European Bank for Reconstruction and Development (EBRD).
Norway’s carbon removals projects at risk if EU implements proposed climate policy changes -minister
Proposed changes to the EU’s climate policy jeopardises Norway’s chance to meet one of its emissions targets for 2030 and puts some of its carbon removal (CDR) projects at risk, the country’s climate minister has said in a letter to the EU published on Monday.
AMERICAS
US DOE announces $6 bln for annual industrial decarbonisation of 14 Mt
The US Department of Energy (DOE) announced Monday up to $6 billion in funding for industrial decarbonisation projects across multiple states, which the agency said collectively are expected to slash emissions by 14 million tonnes annually and facilitate wider adoption of carbon-cutting technologies.
CDR companies team up to advance removal projects in North America’s pulp and paper sector
Two carbon capture tech companies have signed an agreement to collaborate on developing carbon dioxide removal (CDR) projects for the US and Canadian pulp and paper industries, they announced Monday.
RGGI Market: Observers anticipate permit values to hold strong as RGAs set fresh records
RGGI allowance (RGA) prices continued to soar past last week’s peaks amid heightened market strength, fuelled by the outcome of the first auction of the year and expectations surrounding the ongoing programme review.
Canada Growth Fund announces third tranche, invests C$50 mln into private equity firm
The Canada Growth Fund (CGF), a federal investment vehicle, allocated C$50 million ($36.8 mln) towards a Montreal-based investment firm backing clean tech companies, the federal government announced Monday.
ASIA PACIFIC
Investors seek certainty on Australian fossil fuel phase out, resilience and adaptation plans, survey finds
While sentiment and confidence in Australia has improved thanks to significant climate policy progress, investors are waiting on the government to provide clear timelines on phasing out fossil fuels, a survey has found.
Civil society groups sign activist investor letter urging gas giant shareholders to vote on climate
Activist shareholder group Market Forces has called on retirement fund AustralianSuper to put heat on Woodside Energy’s development plans at its April annual general meeting to be held in Perth.
Charity, carbon developer partner on nature-based solution to benefit children
An international charity organisation is partnering with an Australian project developer and advisory to develop nature-based carbon projects in the Asia Pacific, with a focus on benefitting children, it announced.
CBAM to deal limited blow to Malaysian exports, govt says
Europe’s carbon border adjustment mechanism (CBAM) will hit 75% of Malaysian exports to the region but less than 10% of total exports for 2021-23, according to local news citing figures from the government released Monday.
Japanese agricultural lender to promote seaweed feed additives, cut methane emissions
A major agricultural lender in Japan has teamed up with two domestic partners to promote the commercialisation of cow feed additives using red seaweed, aiming to reduce methane emissions from cow burps and restoring marine ecosystems.
Beijing releases revamped carbon trading rules for local market
The Beijing municipal government has released revised management rules for carbon trading under its local emissions scheme, adding more legal clout to back the operations of the pilot market.
INTERNATIONAL
IPCC plans to unveil carbon removals methodology by end of 2027
UN scientists will reveal a new methodology for carbon capture and removal technologies and to help inform national climate plans, the chair of the IPCC told an international summit.
Climate litigation on the rise with increased reporting requirements -lawyers
Climate litigation cases look set to rise in coming years as new sustainability reporting requirements come into play, from the EU to the US, said lawyers during a conference on climate and ESG legal risk.
VOLUNTARY
VCM Report: Market pauses as ICAO delays approval of new standards, ICVCM wades through voluntary carbon methodologies
Trade in the voluntary carbon market stumbled last week under a cloud of uncertainty created by key organisations.
Commodity trader to generate 75 mln voluntary carbon credits by 2030 from portfolio
A multinational energy and commodity trading company has financed a voluntary carbon project pipeline worth 75 million issuances by 2030, it confirmed in a sustainability report.
Lawsuit win against KLM’s carbon offsetting claims sets precedent to change airline behaviour, says lawyer
The recent ruling by a court in the Netherlands that KLM’s historical climate claims, including use of voluntary carbon credits, constituted greenwashing could change airlines’ practice in the EU, said a lawyer who worked on the case.
BIODIVERSITY (FREE TO READ)
Cercarbono publishes final biodiversity crediting protocol
Colombia-based environmental crediting standard Cercarbono on Friday published the final version of its biodiversity protocol that will underpin crediting of 18 eligible activities across a number of ecosystems, though with a number of significant changes since its initial draft.
Governments must develop biodiversity standards to address paper industry’s impacts, study says
Incentives for sustainable forest management and recycling are urgently needed to mitigate the biodiversity impact of paper production, as forest ecosystems have come under increasing pressure due to logging and the industry’s extensive use of chemicals, a study has said.
Brazil’s ambassador to WTO calls for reforming agricultural subsidies at BioTrade Congress in Geneva
The World Trade Organisation (WTO) must work to reform agricultural subsidies in order to support the achievement of the Kunming-Montreal Global Biodiversity Framework targets, the ambassador of Brazil to the WTO has said.
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Job listings this week
- *Chief Commercial Officer, Perimeter Forest Limited Partnership – Remote
- *Forest Carbon Specialist, Perimeter Forest Limited Partnership – Remote
- *Account Director, Carbon Markets, Browning Environmental Communications – London
- *Feature Writer/Sub-Editor, Carbon Pulse – North America
- *Environmental Markets Correspondent, Carbon Pulse – Latin America
- Director, Emissions Trading & Carbon Markets, Government of Alberta – Edmonton
- Economist, Carbon and Natural Capital, Manulife Investment Management – Boston
- Scientific AI/ML Engineer, Planette AI – Bay Area, California
*Premium listings
Or click here to see all listings
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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
Big Oil bares its teeth – Big Oil argued against a rapid transition to green energy at the annual CERAWeek conference in Houston this week, expressing confidence that fossil fuel consumption would continue growing. The chief executive of Williams, the biggest US gas pipeline company, told the Financial Times that the environment right now is very positive for the oil and gas industry, despite countries pledging to begin transition away from fossil fuels and tripling the use of renewables by 2030 at the COP27 climate summit.
Climate protection – The Centre for Disaster Protection (the Centre) has announced its selection as the Coordinator for the Technical Advisory Group (TAG) of the Global Shield against Climate Risks (Global Shield), whereby it will collaborate with a group of experts supporting climate vulnerable countries to access tailor-made, high-quality Climate and Disaster Risk Finance and Insurance (CDRFI) support packages from the Global Shield. The Global Shield aims to offer better protection against climate and disaster-related risks for vulnerable people and countries, and was launched at COP27 in Nov. 2022 by the Vulnerable Twenty Group (V20), the Group of Seven (G7), and other supporting countries.
Brand value – Shell continues to be the world’s most valuable oil and gas brand, according to a new report from Brand Finance, a brand valuation consultancy. The oil major recorded a 4% increase in brand value to $50.3 bln, remaining resilient despite facing challenges such as falling revenues, a decline in enterprise value, and a drop in Brand Strength (BSI) score. Brand Finance research shows Shell’s decline in brand strength is primarily caused by lower recommendations, expectations, and current revenue. Meanwhile, Aramco, PetroChina, and Sinopec remain in second, third, and fourth places, respectively. BP re-entered the top five, having dropped in the ranking the previous year.
EMEA
Final curtain call – Seven lignite-fired power plant units with a combined capacity of 3.1 GW will finally be shut down in Germany at the end of March, after their decommissioning had been postponed due to the energy crisis, according to news agency dpa. To save natural gas in power generation during the energy crisis, five units were taken out of the security reserve, while two further units were allowed to continue operating beyond the originally planned shutdown date. All were allowed to sell on the wholesale market but that will now come to an end, with the Federal Network Agency (BNetzA) saying that the shutdowns will not impact security of supply.
Supply gap – Future offshore wind projects in the UK could be at risk due to rising demand for steel, with British projects relying on foreign steel supply unless UK production is ramped up, according to analysis by consultancy group Newton. Increased steel production is unlikely, however, following plans to close furnaces at Port Talbot announced earlier this year, it points out. UK government plans to produce 50 GW of wind power by 2030 (up from 14 GW today) could be put in jeopardy if wind developers struggle to access the steel they need while global competition heats up, says the analysis. Offshore wind farms will need close to 3.8 mln tonnes of steel in the UK between 2025 and 2027, accounting to around 23% of the country’s steel production, according to Newton, as reported by Sky News.
Second thoughts on ETS2 – The introduction of an EU-wide carbon price on heating and road fuels in 2027 should be reconsidered, according to Yasmin Fahimi, president of the German trade union confederation (DGB), Euractiv reports. “Such decisions are not irrevocable,” Fahimi suggested on Saturday (March 23), saying “we urgently need to talk again about the economic and industrial policy consequences” of the ETS2. Germany already has a national levy of €45 per tonne of CO2, and Fahimi argued that the country has “reached the limits of what CO2 pricing can really achieve” without causing social harm. Ricarda Lang, co-leader of Germany’s Green party, acknowledged the risk of a price hike at petrol stations. “This is actually what we are heading towards, in the current situation, that the carbon price is threatening to skyrocket in 2027,” she told a conference organised by German NGO FiscalFuture. This can be addressed by repaying revenues from carbon pricing to citizens, known in Germany as the climate bonus, she added.
The opposite of tree-huggers – According noted seen by Euractiv, Austria, Finland, Italy, Poland, Slovakia, Slovenia, and Sweden are seeking to delay the implementation of a new anti-deforestation law within the bloc, and exempt small-scale farmers from the rules, according to a note circulated among member states, ahead of a meeting of the bloc’s farming ministers on Tuesday. The efforts aim to weaken the implementation of the EU anti-deforestation regulation (EUDR) and loosen requirements for EU member states. The EUDR extends to cattle, cocoa, coffee, palm oil, soya, wood, and many derived products, such as chocolate and leather, produced outside and inside the EU. It obliges companies to ensure products sold in the EU have not led to deforestation and forest degradation. Read more on EUDR here.
Results are in – Less than a third of voters think the EU has had a positive impact on environmental protection, according to a Euronew-Ipsos poll. The poll also revealed that more than half of European voters believe the fight against climate change is a priority, and a further 32% said it was important but not a priority. Some 16% believe the fight against climate change is a secondary issue. Women were slightly more likely to say the fight against climate change was a priority at 55%, compared to 49% of men. The poll also shows that age isn’t a significant indicator of people’s perspective on climate action.
New gigafactory – Chinese electric vehicle maker EVE Energy is reportedly in discussions to invest over £1 bln in a new gigafactory on the outskirts of Coventry in central England, the Times reports. The proposed factory, spanning 5.7 mln square feet, would be a key element of the planned UK Centre for Electrification in the West Midlands region, and is expected to create up to 6,000 jobs in the area. EVE Energy is considering an initial investment of £1.2 bln for the project, while the facility could attract additional private funding totaling up to £2 bln, contingent on securing substantial subsidies from the UK government.
Balkans climate partnership – The Climate Action Center of Excellence (CACE) has been formed as a pioneering climate action partnership in the Balkans by the Gulf Organisation for Research and Development (GORD), the University of Sarajevo – School of Economics and Business, Ekonomski Institut Sarajevo, and the Rimor Company. The ventures have signed a Memorandum of Understanding (MOU) to enhance collaboration in academic, research, and consulting activities across sustainability, management, industry, and commerce. This will include exchange programmes for academics, dual and join degree programmes, and the development of research materials. Overall, the MOU aims to boost understanding and cooperation between the institutions, improving their response to climate change challenges, while supporting the involvement of local governments in the Paris Agreement.
ASIA PACIFIC
Big addition – The state of Western Australia’s GHG emissions are expected to reach 20% above 2005 levels this year, according to government modelling, the Guardian reports. Western Australia does not have a 2030 emissions reduction target, however the Labor-led government is considering legislating a 2035 target, once it knows what NDC the federal government intends to set. WA’s relatively high dependence on the growing mining and gas sector, including downstream processing of raw materials, has resulted in carbon emissions rising even as other states and the federal government introduce policies to cut their pollution.
Co-investment – Synlait has teamed up with Nestle to help fund innovative on-site farm emissions reduction tools in New Zealand, the two companies announced. The investment is focussed on pragmatic on-farm solutions that improve efficiency, such as effluent management systems, emissions-friendly feed options, advanced soil testing, alternative fertilisers, and tree planting, the companies said. The companies did not provide a dollar-figure attached to the partnership, but said the costs would be split three-ways between Nestle, Synlait, and its farmer suppliers over seven years.
AMERICAS
Wider remit – Exxon is pushing for hydrogen produced from natural gas with the carbon emissions captured to receive tax credits under the US Inflation Reduction Act (IRA) after signing a deal to supply the low-carbon fuel to Jera Co., a Japanese power provider. JERA will consider buying 500,000 tonnes a year, or half the ammonia produced from Exxon’s proposed low-carbon hydrogen project in Baytown, Texas, with the hydrogen to be converted into ammonia for shipping and storage, then burned cleanly to produce electricity. However, for the Baytown project to get up and running, the IRA needs to widen to also include hydrogen made from natural gas with CCS, on top of the currently permitted green hydrogen (made via renewable-powered electrolysis), Dan Ammann, president of Exxon Low Carbon Solutions, said in an interview with Bloomberg. If it goes ahead, starting up in 2028, Baytown will produce 900,000 tonnes of hydrogen from natural gas, using carbon capture to remove the emissions, and more than 1 mln tonnes of ammonia.
Harming not helping – Environmental and refining groups are challenging the US EPA’s Renewable Fuel Standard (RFS), Bloomberg Law reported Monday. Environmental advocacy group Center for Biological Diversity argued that the RFS for 2023-25 exacerbates climate harms, rather than furthering the goals of the Clean Air Act, in a Mar. 22 document filed in the US Court of Appeals for the DC Circuit. The final rule was established in June 2023 and set biofuel volume requirements and associated percentage standards for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel.
Pemex plans – Executives from Mexico’s state oil company, Pemex, said Monday the company aims to cut its GHG emissions by 54% over the next six years and is targeting net-zero emissions by 2050, reported Bloomberg. Reportedly, the company is considering participating in carbon markets to offset its remaining carbon footprint. Pemex said it will allocate 14%-18% of its capital expenditure in 2024 to ESG projects, as well as 10%-14% annually from 2025 until 2030.
VOLUNTARY
Biochar boom – The global biochar market soared to $600 mln in 2023, marking a 91% CAGR production growth rate from 2021 to 2023, according to the International Biochar Initiative (IBI) and the US Biochar Initiative (USBI) in their 2023 Global Biochar Market Report. The report that surveyed over 1,000 stakeholders across a variety of industry sectors highlighted the strong growth of the biochar market for carbon dioxide removal (CDR). Biochar boasts a potential removal of up to 6% of global emissions annually, and in 2023, biochar carbon removal represented over 90% of delivered carbon credits, according to CDR.fyi. Biochar market revenues are projected to soar to nearly $3.3 bln by 2025, up from $600 mln in 2023.
INVESTMENT
Coffee cash coughed up – Swiss-Colombian startup Cotierra (formerly Terra Preta) announced recently a $1 mln pre-seeding round, reported Daily Coffee News. Cotierra will use the funding to refine its biochar reactor technology and expand its operation. Participants in the funding round included Partners in Clime, Carbon Removal Partners, the Carbon Drawdown Initiative, and others. Cotierra’s business model involves the selling of carbon offsets associated with in-house biochar production and farm deployment, as well as through carbon insetting solutions for coffee trading and roasting companies.
Bettering biochar – Swedish digital MRV startup Planboo on Friday announced that it had secured some $1.1 mln in funding from investors like Katapult, Silverstrand Capital, Rockstart, and 8+ Ventures. The firm, which tracks and audits biochar production, will implement the investment to hire additional staff members and further develop digital tooling methods for carbon removal. Planboo’s technology reduces tracking time and supports transparency in the supply chain, according to the company.
AVIATION
Green Fare appeal – More than one million passengers have purchased Lufthansa Group’s Green Fares, which covers the offsetting of their individual flight-related CO2 emissions, along with other benefits including additional status miles and a free rebooking option, BusinessTraveller reports. Launched as a pilot in Aug. 2022, the Green Fare option is now available on selected long-haul routes run by the airline, with 11% of business fare bookings now made with the Green Fare option, according to the airline. On European routes, the Green Fares offer a 20:80 combination of carbon offsetting through the use of sustainable aviation fuels and climate protection projects, while on long-haul services the ratio is 10:90 respectively. The fare is currently available on more than 730,000 flights per year within Europe and to Morocco, Algeria and Tunisia, and on select long-haul routes.
AND FINALLY…
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